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3/17/2010 1
April 6 & 7, 2010, TorontoApril 6 & 7, 2010, TorontoLIFE CYCLE COSTING FOR THE PLANNING, DESIGN, CONSTRUCTION LIFE CYCLE COSTING FOR THE PLANNING, DESIGN, CONSTRUCTION
AND OPERATION OF INTELLIGENT AND GREEN BUILDINGSAND OPERATION OF INTELLIGENT AND GREEN BUILDINGS
David Katz, MBA, BADavid Katz, MBA, BASustainable Resources Management Inc. Sustainable Resources Management Inc.
Tel: 416 Tel: 416 -- 493 493 -- 92329232Fax: 416 Fax: 416 -- 493493-- 53665366
Email: Email: [email protected]@sustainable.on.caBuilding Intelligence Quotient ConsortiumBuilding Intelligence Quotient Consortium
Email: dkatz@buildingEmail: [email protected]
3/17/2010 2
•• Review the LCC issues for GREEN and Intelligent BuildingsReview the LCC issues for GREEN and Intelligent Buildings
•• Examples of applying LCC to Green Building optionsExamples of applying LCC to Green Building options
•• Other life cycle environmental attributes covered under Life Other life cycle environmental attributes covered under Life cycle analysiscycle analysis
•• Example of LCC for intelligent building choicesExample of LCC for intelligent building choices
•• Funding for the energy investmentsFunding for the energy investments
•• Associations and agencies that have programs to help pay for Associations and agencies that have programs to help pay for the investments especially if they provide life cycle benefits.the investments especially if they provide life cycle benefits.
Review your interests and share info on any projects and Review your interests and share info on any projects and challenges of applying life cycle costs under budgetary restrainchallenges of applying life cycle costs under budgetary restraintt
AGENDAAGENDA
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Intelligent and Green Building Intelligent and Green Building InvestmentsInvestments
Typical problems that LCC can resolve:Typical problems that LCC can resolve:Having lower life cycle costs provides the Having lower life cycle costs provides the incentive to overcome the lower first cost or incentive to overcome the lower first cost or budgetary restrictions.budgetary restrictions.Building valuations that look at the revenues and Building valuations that look at the revenues and the operating costs are improved by having the the operating costs are improved by having the lower operating costs of better facilities. lower operating costs of better facilities. Making repairs to existing equipment versus Making repairs to existing equipment versus advancing the purchase of new better advancing the purchase of new better performing equipmentperforming equipment
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Application to design and construction processApplication to design and construction process
LCC analysis has many applications in the capital LCC analysis has many applications in the capital asset, buildings and infrastructure projects that use asset, buildings and infrastructure projects that use the design and construction process. Choosing the the design and construction process. Choosing the appropriate materials and costing out the operating appropriate materials and costing out the operating and maintenance cost of different alternatives and maintenance cost of different alternatives provides the design and construction professional provides the design and construction professional the ability to include the ownerthe ability to include the owner’’s financial criteria as s financial criteria as part of the process. part of the process.
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EVALUATING AND PRESENTING THE RESULTSEVALUATING AND PRESENTING THE RESULTSEvaluation approachesEvaluation approachesTotal present valueTotal present valueNet present valueNet present valueSimple paybackSimple paybackTrue paybackTrue paybackEquivalent uniform annual costEquivalent uniform annual costRate of returnRate of returnKWH savings/investment dollarKWH savings/investment dollar
1.1. Savings/benefit to investment ratioSavings/benefit to investment ratio2.2. Graphic analysisGraphic analysis
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How do Intelligent and GREEN buildings compliment each other?
Using same Life Cycle Cost principles for Insulating Glass Alternatives
Energy Modeling – LEED and Green Globes
H V A C Equipment and Building Automation Impacts
Energy Price Inflation and Demand Response Programs
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Green Building Perspective
• Energy – Efficiency - Metering - Onsite Emergency & Renewable generation
– GridWise capable - Demand Response ready – Net Zero
• Water – Efficiency – Metering – Treatment – Cleaning- Landscaping
• Environmental Management – Storage Tanks - Mold – Maintenance – Operations
– Emergency Response - Training
• Indoor Environment – Daylighting – CO2 and CO monitoring
– IAQ Controls – Filters
• Emissions, Effluent and Other Impacts on the Environment
Noise – NOX – SO2 – Chemicals – Transportation – Heat Island Roofs
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Electricity and Peak Demand Charges –Time of Use Rates
12¢ ?8¢ ?
????¢
4.7¢ / 5.5¢
Life Cycle Costing:
Retrofit Applications
0 10 20 30 40 50 60 70 80
Site Structures
Garage
Balconies
Building Framing
Exterior Walls
Windows
Exterior Doors
Roofs
Heating and Cooling
Ventilation
Domestic Water Systems
Drainage
Plumbing
Power Supply & Distribution
Lighting
Emergency Power
Pre-Repair Service Life (yrs)
Total Design Life toReplacement (yrs)
Based on High-Rise Apartment Repair Needs Assessment CMHC 1998
Age of the building
Multi-Residential Building Service LifeApproximate design and pre-repair service life of the building elements
Conclusions:
First costs and rent revenues are only part of the Life Cycle Cost Story.
When all the repair items are totaled they may be as much as the cost of the original building.
Typical Building Maintenance CostsAnnual building renewal investment (as % of original building cost)
(Source: Energy Cost Savings Council)
Conventional Cost AnalysisAverage Payback Period (PP) and Return on
Investment (ROI) on single technology products.
Life Cycle Costing:
New Building Design Applications
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New Building Design
LCC and Sustainable Design TechnologyAn LCC assessment can be used to assess options concerning site design, and material and equipment selection to improve overall building energy efficiency.
Typical Sustainable Technology Applications:
Green Roofs
Greywater recycling
Photovoltaics
Ground source heat pumps
Natural ventilation
Natural corridor and Riparian Zone
ECD Energy and Environment Canada Ltd.
Native plant species – Bullrushes, Canadian Goldenrod, and Switchgrass
Brownfield at mouth of the Keating Channel, Toronto, ON
Sustainable EcosystemsAppropriate Site SelectionLand that is already municipally serviced or has previously been built upon should be favoured for development over previously undeveloped areas to enhance local ecology and preserved ecologically sensitive areas.
Natural CorridorsWhen linked to natural areas, community green spaces can provide valuable wildlife habitat and migration pathways. Site design should encourage interconnected natural areas and wildlife corridors.
Light Pollution ReductionMinimizing outdoor lighting, without compromising safety, can significantly reduce environmental threats to nocturnal wildlife species.
Native Species PlantingUsing plants that are native to a site reduces irrigation, lowers pesticide and fertilizer use, and cuts maintenance costs. Site design should ensure 75% of plantings are native.
Roadway NaturalizationRoadway edges and easements can support plantings that provide habitat for natural corridors and can be designed to reflect topographical and environmental conditions.
Microclimatic DesignBuilding design that maximizes solar access in winter for passive solar heat gain and shades windows in summer; controls wind and snow exposure; insulates against energy loss with green roofs of earth shelters, and promotes green roofs reduces energy consumption,
Passive Solar HeatingBuildings with sufficient southern exposure can capture sunlight in winter and release it as heat, reducing energy costs. In the summer, trees, window overhangs and sunshades block sunlight, keeping the building cool.
Natural or Hybrid VentilationBuildings may be ventilated and cooled passively if designed to take advantage of temperature/pressure differentials inside and outside the building, thereby creating cross-ventilation. Natural ventilation can be combined with traditional systems in a hybrid design.
Solar-Powered Street FurnitureSigns, bus shelters, street lights, and parking meters can easily function off-grid with a small solar array.
Community-Based Energy GenerationRenewable energy comes from non-fossil fuel based sources, like the sun, wind, water or earth. Governments, utilities and individuals should consider these sources both for their environmental sustainability and their stable, long-term costs.
ECD Energy and Environment Canada Ltd.
Wind turbine at the Canadian National Exhibition, Toronto, ON
Photovoltaic curtain wall spandrels
Photovoltaic bus shelter
Photovoltaic light
Vegetated "green" roof, Mountain Equipment Co-op, Toronto, ON
South-facing housing, Milton Keynes, UK
Sustainable Energy Sources
Eco-Industrial SynergiesOne company’s waste may be another company’s resource. Encouraging regional economic exchange of by-products and energy leads to increased energy efficiency, reduces pollution, decreases waste volumes, and creates new market opportunities.
Adaptive Re-Use of Existing BuildingsNew buildings consume approximately 50% of all materials produced. Re-using existing structures, or salvaging their materials (such as brick, steel, timber, doors, fixtures, etc) conserves large quantities of resources and helps to preserve existing urban/cultural infrastructure.
Recycled Material UseTires, concrete, asphalt, fly-ash, carpet, ceiling tiles, and metal products can all be recycled for use in urban infrastructure such as roads. Materials in open spaces, such as playground equipment and surfaces, benches, tables, bike racks and signs can be recycled, recyclable or re-usable.
Sustainable Material UseThe life cycles (or cradle-to-grave environmental effects) of materials should be considered in their selection. Variations in the ways concrete, steel, timber, carpet, etc. are produced, materially composed, used, and disposed of strongly affect their environmental impact.
On-site Composting and RecyclingNiagara Region has a waste diversion goal of 65% by 2012. For this goal to be realized, areas for the handling, storage and separation of recyclables should be commonplace, and composting should be a priority where food waste is being produced.
Gooderham and Worts Distillery District, Toronto, ON
ECD Energy and Environment Canada Ltd.
Mountain Equipment Co-op, Toronto, ON. Structure consists of salvaged timbers and fly-ash concrete.
Sustainable Resource Use
Improved Building AccessThe energy needed to transport goods and for commuting to building is often equal to the amount of energy needed to operate the building. To reduce energy consumption, access routes for goods should be optimized and walking distances to public transit should be shortened.
Pedestrian and Bicycle TrafficWalkable and bikeable communities expand transportation options, diversify neighbourhoods, and reduce reliance on automobiles. Foot and bike paths, denser urban fabric, reduced auto speeds, and sheltered bicycle parking should be a priority.
Alternative Parking ArrangementsThe minimum number of parking spaces required for a development is determined by the peak demand. This can be excessive in some circumstances and options such as parking in lieu and parking on alternative sites may be more desirable.
CarpoolingShared vehicle transportation reduces automobile usage and congestion. Convenient pick-ups areas and a voluntary database of occupants’ postal codes help to promote carpooling.
Alternative Fuel Re-Fueling StationsPublic interest in vehicles fuelled by alternative fuels (such as electricity, natural gas, ethanol and biodiesel) is increasing, but these vehicles need conveniently located re-fuelling stations to grow in number.
Hydrogen re-fuelling station, Canadian National Exhibition, Toronto, ON
ECD Energy and Environment Canada Ltd.
Bike lanes and bike storage facility
Designated carpool lot
Sustainable Transportation
Desirable and undesirable stormwatermanagement practices
Water Table
StreamStorm Sewer
Impermeable PavingPlanters
Permeable PavingBioswale
Riparian Zone
Stormwater ManagementSite design should focus on increasing ground infiltration of water and reducing quantity and off-site treatment of run-off. Practices include minimizing impermeable paved surfaces, storing water in catchment systems, increasing vegetation, and creating retention ponds and infiltration basins.
Bioswale DesignGrassed or vegetated drainage channels, an alternative to traditional curb and gutter stormwatermanagement, retain water and break down road contaminants.
Snow Pile PlacementSnow piles should be placed away from drainage courses and storm drain inlets to diminish impact of salts and other toxins on stream courses.
Riparian Zone ProtectionVegetated transition areas between a body of water and upland area control erosion, filter run-off, and provide animal habitat.
Innovative Wastewater TreatmentGrey-water recycling, composting toilets, constructed wetlands and Living Machines can reduce overall water consumption and reduce BOD content in wastewater to levels lower than those produced through conventional treatment.
Bioswale, Water Pollution Control Lab, Portland, Oregon
Lving Machine wastewater facility, Nova Scotia
ECD Energy and Environment Canada Ltd.
Sustainable Water & Wastewater Services
Sample LCC Application to Sustainability
Green RoofsDEARBORN, Michigan -Ford is installing an environmentally sound roof on its $2-billion redevelopment of its Rouge River manufacturing complex. Keith Schneider, program director of the Michigan Land Use Institute, praised the green roof plan as innovative, if not a little risky. The new Ford Rouge Center assembly plant construction is one of the largest industrial redevelopment projects in the US. The green approach is designed to save Ford $35
million, when compared with the cost of installing a conventional treatment system, Schneider says.
LCC calculation of Greg Kats
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Softcoat LowE
Meets the Code and provides lowest first cost.
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Triple Glazing & Heat Mirror
Alternatives cost more – but save more energy
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IG Insulating PropertiesIG Insulating Properties
Data obtained using L.B.L. (Lawrence Berkeley Laboratories) Window 5.2 analysis program (nfrc/ashae)
2.223.45 4.00
8.00 9.09
14.30
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Doubl
e (Ar 1
")
Hard
Low-E
(Ar 1
")So
ft Lo
w-E (A
r 1")
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IG Solar Heat Gain IG Solar Heat Gain CoefficientCoefficient
0.700.67
0.380.32 0.30
-
0.10
0.20
0.30
0.40
0.50
0.60
0.70
Double
Hard Lo
w-E
Soft Low
-E
Triple
Low-E
Sunlite
Triple
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Reduce Energy Bills(Operating Costs)
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Reduce HVAC Requirements(Capital Costs)
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Reduced Lighting Requirements(Capital & Operating Costs)
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Break-even Analysis using cash flow method
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Low E 2 Triple Glazing Heat Mirror
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Risk and sensitivity to above analysis.Fuel Escalation could less than 4% causing Breakeven to be longerR value energy saving assumptions may not be proportional as assumed.Solar Gain may have greater energy saving and peak shaving impacts.Difference in initial HVAC capital costs should also be considered. Other positive attributes like quiet and no mold may be more valued than energy savings.
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Investment
Source: Sustainable Building Technical Manual
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Comfort
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Eliminate Condensation & Mould
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Sound Control
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Triple Glazing- Optimum Daylighting
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Is this Tinted Glass Building Green and Intelligent ?What are the tradeoffs in HVAC, Daylighting & Productivity
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Comfort“The best sustainable designs are not just environmentally responsible. They also produce buildings where employees can thrive and productivity can soar”
Christine Ervin President and CEO
U.S. Green Building Council
“Using green building strategies can result in increases in occupant performance measures by 6 to 26 percent.”
William D. Browning Founder of Green Development Services
and Senior Associate of Rocky Mountain Institute
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Financial Benefits of Green Buildings
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Sustainability Matrix
Net Present Values Market LEED™
CertifiedLEED™
SilverLEED™
GoldLEED™Platinum
Living Building
30 Years $22.7 $19.6 $19.7 $18.5 $18.3 $18.7
60 Years $62.9 $45.3 $36.7 $27.8 $23.7 $19.6
100 Years $348.9 $218.4 $166.9 $95.8 $62.2 $20.8
Total Savings over Market after 30 years
$ - $3.1 $3.0 $4.2 $4.4 $4.0
The David Lucile Packard FoundationLos Altos Project
http://www.packard.org/pdf/2002Matrix.pdf
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Green and Intelligent Building Convergence Review
Energy management for HVAC, Lighting & Demand Response – CBIP – Energy StarGreen Buildings – Environment - LEED & Green GlobeAccess and Security for safety of occupants and visitorsCabling and Wireless to increase revenue and lower costs Communications to increase value and productivityDigital Signage for instant information and advertisingInterconnectivity to other buildings and the community
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CABA INTELLIGENT & INTEGRATED BUILDINGS COUNCIL
Developed the BIQ Rating System for IB with Appraisal Institute and EPA Energy Star support
www.caba.org/biq
Life-Cycle Cost Analysis Tool with Reed Construction Data/RSMeans
www.caba.org/lifecycle
Developed a New Intelligent Building Roadmapwww.caba.org/ibrm
Who is working on bringing these issues all together to evaluate alternatives and make sound economic choices?
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Produced by: Thomas J. Lohner, P.E.Vice President, TENG Solutions
Analyzing the Life Cycle Cost of Integrated Building Systems
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Systems Integration -Comparative Life Cycle Cost
You Can Not Afford Not to do it Right
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Facility Integration Life Cycle Costs
First CostChanges, Additions & UpgradesOperating & Maintenance Utility Costs
UPS
Computer Room A/C
Emergency Generator
Fire Management System
Door Access Control & Intrusion Detection
Lighting Control SystemHVAC Control System
Typical Building Approach to AutomationTypical Building Approach to Automation
Main Service Switchgear
5 User Interface Workstations!
No Integration !No Integration !
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Non-Integrated BuildingEngineering Left up to ContractorsSole Sourcing Required to Provide Integration - $$$$Stand Alone Systems - Single PurposeNobody Responsible for Technology Integration
UPS
Computer Room A/C
Fire Management System
Emergency Generator
Main Service Switchgear
SNMP over IP
Web ServerWeb Server Web Server Web Server
Modbus
Web Server
Facility IP Network
Client FMS Workstation Database Server
Partial Integration Concept Partial Integration Concept
HVAC Control SystemLighting Control SystemDoor Access Control & Intrusion Detection
Security Console
Proprietary Control Sub-systems
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Partial Integration IssuesSoftware Integration on IP networksUse Web Enabled - FMS Application ProgramMethodology Employed for Existing BuildingsHardware Intensive - Many I/O Servers
3/17/2010 51
BENEFITS Partial Integration
Single User Interface for all SystemsWeb based GUI - Defacto StandardPermits Migration to Open Control Networks -Competitive Bids !
Permits Development of Campus Wide Relational DatabaseDatabase Permits - Maintenance Management , Energy Management , Asset Management, etc.
UPS
Computer Room A/C
Fire Management System
Modbus
Emergency Generator
Main Service Switchgear
SNMP over IP
Web Server
Web Server
Facility IP Network
Client FMS Workstation Database Server
Full Integration Concept Full Integration Concept Open Standards Based Control Sub-systems
LONTALK - EIA 709.1 & BACNET – ANSI/ASHRAE 135A
Door Access Control, Intrusion Detection, Lighting & HVAC Control System
Web Server
Security Console
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Full Integration IssuesOpen Standards Applied Where PossibleI/O Servers MinimizedNumber of Devices Reduced - Shared Information
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BENEFITS Full Integration
Same as Partial Integration ApproachPLUS
Competitive Bids in each BuildingIntegrated Building Sub-systems
Lighting, HVAC, Power Management and Security
Lowest Life Cycle Cost Approach
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Life Cycle Cost Analysis Assumptions
150,000 SF BuildingMajor M & E Equipment Cost - $6.00/SF ($18.00/SF TOTAL)Proprietary Systems Life Cycle - 7 years (FAR)
Replacement Cost = 125% of the Initial System Cost50% of the Proprietary Systems are Replaced (Next Generation)20% of the Open Systems are Replaced (Age & Obsolescence)
Average Cost per Control Device - $400Open and Proprietary Control Devices Base Bid Costs are the SameTraining Costs - $3000/ GUI; $1500/ Protocol; 50% of 1st year cost for years 2 and up
Life Cycle Cost Analysis Assumptions
Dynamic Control Sub-
systems
Initial Cost
($/SF)
Base Year Service Contract
($)
Base Year Annual Changes & Modificatons (% of 1st Cost)
HVAC Controls $1.5/SF 15,000 2%Lighting Controls $1.0/SF 10,000 3%Power Monitoring $0.5/SF 5,000 1%Intrusion Detection $0.3/SF 3,000 2%Total $3.3/SF 33,000$ $39,000
Comparative First Costs
System Component
Non-Integrated Building
Partial Integration
Full Integration
Graphical User Interface - Hardware & Software 5 @ $15K 1 @ $20k 1 @ $20kEquipment Networking Uprades 0 4 @ $2k 4 @ $2kWeb Servers 0 5 @ $10k 3 @ $10kControl Device Reduction (5%) 0 0 -24750
TOTAL $75,000 $78,000 $33,000
Full Integration Savings $42,000 $45,000
No Account For Division 17000 Savings - 20 to 30%!!!
Blinds & 24v Wiring
Non-Integrated HVAC, Lighting & Intrusion Detection Echelon World Headquarters
VAV BoxesNo Occupancy Control
DimmableLighting Control
Sensor and 120v WiringLighting, HVAC & Occupancy Sensor Control Trunk
User Scene Control Switch
Integrated HVAC, Lighting, Intrusion Detection & Blind ControlEchelon World Headquarters
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Changes, Additions and Upgrades Issues
Cost Premium Paid for Additions & Changes to Proprietary Controls Limit Scope of Future Improvements and ModificationsCost Premium for Non Competitive Service Contracts
Changes, Additions and Upgrades (Annual Costs- 2nd Year & On )
O & M Cost Issues
Non Competitive
Cost Premium
Non-Integrated Building
Partial Integration
Full Integration
Service Contracts 25% 41,250$ 41,250$ 33,000$ Future Additons & Remodeling 25% 49,500$ 49,500$ 39,600$ Future Software Upgrades 5 @ $1k 1 @ $2k 1 @ $2kYear 7 Replacement Cost Reserve ( 9% APR) 33,629$ 33,629$ 13,452$
Total 129,379$ 126,379$ 88,052$
Full Integration Savings 41,327$ 38,327$
Operating and Maintenance (Annual Costs- 2nd Year & On )
System Component
Non-Integrated Building
Partial Integration
Full Integration
Training 11,250$ 5,250$ 3,750$ Improved O & M Staff Efficiency 0 SOFT SOFT IT Support 5 @ $2k 1 @ $3k 1 @ $3kManagement Reporting 0 (3 @ $1k) (3 @ $1k)
Total 21,250 5,250$ 3,750$ Full Integration Savings $17,500 1,500$
Computerized Maintenace Management 25,000$ First Cost(Extend Major M & E Equipment Life; 25yrs vs 20yrs)Future Worth ($ @ Yr 20) 180,000$ Present Worth (P/F @ 9%) 32,112$
Typical Energy Use Profile
LightingHVACPowerOther
HVACHVAC30% Ave Annual Energy 30% Ave Annual Energy
UseUse
$0.4 / SF / YR$0.4 / SF / YR
$60,000 / YR$60,000 / YR
LightingLighting40% Ave Annual Energy 40% Ave Annual Energy
UseUse
$0.53 / SF / YR$0.53 / SF / YR
$80000 / YR$80000 / YR
PowerPower25% Ave Annual Energy 25% Ave Annual Energy
UseUse
$0.33 / SF / YR$0.33 / SF / YR
$50,000 / YR$50,000 / YR
Other (Elevators, etc.)Other (Elevators, etc.)5% Ave Annual Energy 5% Ave Annual Energy
UseUse
$0.07 / SF / YR$0.07 / SF / YR
$10,000 / YR$10,000 / YR
TOTALTOTAL$1.33 / SF / YR$1.33 / SF / YR
$200,000 / YR$200,000 / YR
Energy Costs (Potential Annual Cost Savings)
System ComponentSavings Factor
Energy Cost ($)
Non-Integrated Building
Partial Integration
Full Integrat
ated Lighting & HVAC Control 5% $60,000 0 0 $3,000oved Load Factor ( .5 to .55) 5% $200,000 0 $10,000 $10,000
Maintained Equipment 1% $60,000 0 $600 $600
dinated Supply/Demand EMS Strategies 5% $200,000 0 $10,000 $10,000
egrated Building Control System Savings $0 $20,600 $23,600
ionIntegrImprBetter
Coor
Int
System Integration Life Cycle Cost Summary
LifCoChangesOperUt
e Cycle Cost Component
Non-Integrated Building
Partial Integration
Full Integration
mparitive First Cost $75,000 $78,000 $33,000, Upgrades & Additions $129,379 $126,379 $88,052
ating & Maintenance $21,250 $5,250 $3,750ility Cost $200,000 $179,400 $179,400
Net Present Value $2,325,232 $2,074,091 $1,773,493Discount Rate 9%
Life Cycle Period (yrs) 10Savings $551,739 $300,598
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Conclusion:
Full Integration will Result in the Lowest Net Present ValueThe Value of the Integrated Approach willIncrease w/ IT AdvancesInformation will be your Competitive Advantage
3/17/2010 67
Federal Government ProgramsOntario Energy Board funding for Enbridge and Union Gas Demand Side ManagementOntario Power Authority Conservation ProgramsLocal Distribution Companies – PowerwiseEnergy Service Companies (ESCO)Financial Institutions for Leasing or BorrowingPrivate energy companies for onsite generation
What are the opportunities to get funding for upgrades and retrofit alternatives that provide lower life cycle costs?
3/17/2010 68
ApplicationsNRCan has a number of building upgrade programs depending on size of buildingNRCan has developed new RETScreen tool for energy efficiencyRenewable and Clean generation incentives Peak Reduction and Demand Response Programs pay for energy management systems that provide controls and M&V
3/17/2010 69
SpecificationsFor products to meet program requirements they must be Energy Star or equivalent rated.For services, such as energy audits and feasibility studies they must be performed by approved professionals and signed off.For financing the lenders need proof of credit worthiness and proper securitization
3/17/2010 70
Features & BenefitsNew Building Automation Systems and Upgrades contribute to energy savings.New chillers, VSD, Lighting Systems all offer more interoperability and controlsMost incentive programs require a measurement and verification plan as proofYou can’t manage what you can’t measureIntelligent buildings are GREEN and Sustainable
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Federal Programs AvailableNatural Resources Canada's Office of Energy Efficiency now offers the ecoENERGY Retrofit Incentive for Buildings, the commercial/institutional component of the ecoENERGY Retrofitfinancial incentives for existing homes, buildings and industrial processes. If you have not yet started a new energy efficiency project, you could receive the lesser of $10 per gigajoule of estimated energy savings or 25 percent of eligible project costs.The next Call for Proposals period is from Feb 1st 2008 to March 31st 2008. When applying, you will need to provide a pre-project energy audit of your buildings. As well, you cannot incur any costs related to the project until you receive a signed Contribution Agreement.Website: http://oee.nrcan.gc.ca/commercial/financial-assistance/existing/retrofits/index.cfm?attr=0
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Provincial Programs AvailableOntario Power Authority – New Construction Program will build on CBIP concept of energy modeling and payment or Low rate interest to facilitate better energy performance.Demand Response 3 – contractual agreement for 100 or 200 hours – incentives paid to schedule by term and amounts.ERIP – Local distribution company programs
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Other Programs Available
Renewable and Clean Standard OffersToronto Better Building PartnershipToronto Atmospheric Fund – Financing BOMA Toronto – CDMOPA for Continuous Commissioning and Next Gen Building AutomationTax credits and Class 43 Accelerated Depreciation on qualified equipment
3/17/2010 74
Financing Options
Self – Finance – Your cost of moneyToronto Atmospheric Fund – Financing Lease or Rent – morEnergy OptionsLow interest loans – Banks and Credit UnionsEnergy Service Companies using Performance contractsCarbon Credits and other Trading Schemes
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What is ERIP?Provides incentives for electricalretrofits in your businessReplaces inefficient products with high-efficiency ones, which will lower your operating costsOffers incentives for sustainable, measurable and verifiable energy retrofits that result in on-peak demand savings and annual energy savings
3/17/2010 76
Program OverviewERIP focuses on:
1. Lighting and motors2. Heating, ventilation and air conditioning3. Overall electricity systems
ERIP incentives are calculated1. For a set sheet of activities2. For the power and performance improvements of the total
system improvement
The program is operated by your local distribution company and is funded by the Ontario Power Authority.
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How ERIP WorksThe program works this way:
• You assess your need for new electricity upgrades.
• You decide on what equipment or technology you are going to use to save electricity.
• You agree with your local distribution company about the project.
• Once installed and verified, the program will reimburse you a portion of the equipment costs based on that calculation of how much electricity efficiency expected to be gained.
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ERIP tracksPrescriptive
For predefined technologies with corresponding per unit or performance basis savings measures Will involve replacements and upgrades to existing systemsIncentive provided is based on the calculation of what is installed
CustomFor more specific solutions to electricity efficiency retrofitting Technology, equipment and systems are evaluated on the basis of their power and energy performance improvementIncentive offered based specifically on the level of improvement.
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Contact InfoDavid Katz, MBA, BADavid Katz, MBA, BA
Sustainable Resources Management Inc. Sustainable Resources Management Inc. 6 Morning Gloryway6 Morning Gloryway
Toronto, OntarioToronto, OntarioCanada Canada MM2H 3M22H 3M2Tel: 416Tel: 416--493493--92329232Fax: 416Fax: 416--493493--53665366
Email: Email: [email protected]@sustainable.on.caBuilding Intelligence Quotient ConsortiumBuilding Intelligence Quotient Consortium
Email: dkatz@buildingEmail: [email protected]
