BOMA San Francisco Launches Commercial Property Energy Efficiency Program

A preponderance of activity and attention in the energy efficiency industry focuses on tangible, physical improvements to buildings and their equipment. Rightly so, given the energy savings and returns generated through the implementation of lighting, HVAC and energy management technologies. But, such activities are only part (albeit a primary piece) of the energy efficiency puzzle -- there's much to be learned, and many dollars to be saved, through thoughtful behavioral and operational practices.

Last month, the Building Owners and Managers Association (BOMA) of San Francisco announced they will coordinate delivery throughout California of the BOMA Energy Efficiency Program (BEEP), an innovative series that teaches commercial real estate professionals how to reduce energy consumption -- and related costs -- with proven, no- and low- cost strategies for optimizing equipment, people and practices. From BOMA's press release:

Nationwide, the commercial real estate industry spends approximately $24 billion annually on energy. Yet energy consumption represents the single, largest controllable operating expense for office buildings. BOMA anticipates BEEP will reduce energy consumption by as much as 30 percent in participating commercial properties

"If 2,000 Bay Area buildings adopt BEEP's best practices during the next three years, the resulting savings gained from reduced energy consumption will amount to $400 million," said BOMA SF Executive Vice President Marc Intermaggio. "The fact is a 30 percent reduction in energy consumption in the nation's commercial buildings, which equates to $7.2 billion, is readily achievable simply by improving building operating standards."

Click here to visit BOMA's BEEP site and learn more.

Johnson Controls Paints a Promising Picture for the Future of Energy Efficiency

Johnson Controls is the world's largest provider of energy efficiency solutions for commercial buildings. While their approach -- provision of services as an ESCO (primarily for governmental organizations) and the sale of large-scale, proprietary energy management systems -- differs a bit from what we do at Octus Energy, our focus is the same: Generate sustainable energy savings through various means for commercial building owners. JCI is big brother. When they speak, people and companies and analysts take note.

At last week's CleanTech analyst day -- as summarized in an investment brief by analyst Canaccord|Genuity -- Johnson Controls shared a few interesting morsels:

The cleantech “megatrend.” Clean technology is now a “long-term global growth megatrend,” according to JCI management. Management specifically noted that buildings in North America and Europe, which together account for 40% of the world’s energy consumption and 70% of electricity usage, represent the single biggest opportunity for cleantech.

$24 billion opportunity. JCI estimates the energy solutions market is a $24 billion global opportunity, growing at approximately 9%-14% per year. Key market drivers for the energy solutions market include: 1) climate legislation and energy security; 2) corporate climate commitments; 3) volatile energy costs; 4) innovative funding models (including PACE, as Octus discussed here and here); 5) deployment of smart-grid technology; and 6) energy efficiency renewable resource standards.

Feds step up. Legislation and regulation are key drivers in the energy efficiency marketplace. In the United States, there have been energy efficiency bills in both the lower and upper house (the American Energy and Security Act of 2009 in the House and the American Clean Leadership Act of 2009 in the Senate). The Senate bill has been passed out of committee and includes the following features:

• National electricity and renewable electricity standard
• Energy efficiency building retrofit program
• Energy efficiency programs for states
• Building codes incentives
• Building performance information
• New clean energy deployment administration

Meanwhile, recent events in the Gulf of Mexico are spurring interest in energy and climate bills that otherwise would not have been brought up or passed this year.

PACE financing programs gaining momentum. Property Assessed Clean Energy, or PACE, is a financing solution that enables property owners to pay for energy efficiency, renewable energy and water efficiency projects via an additional assessment on their property tax bill over a five to ten-year term. The PACE program benefits building owners by: 1) eliminating the need for large upfront cash payments; 2) offering a competitive cost of capital; 3) solving credit rating collateral issues; 4) potentially moving the projects off-balance sheet; and 5) allowing owners to pass through retrofit costs to tenants. Johnson Controls echoed our sentiment that PACE financing will be one of the keys to unlocking the huge retrofit opportunity in the commercial building sector.

IT convergence. JCI sees the “smart building” as the starting point that is needed before a “smart grid” is even possible; again, echoing Octus's energy management and building automation strategy through our Smart Energy Platform. Put simply, the “smart grid” can’t analyze much without a “smart building” providing it with real-time information. The company noted that the integration of equipment and controls coming together in one product has been a major advancement for the industry.

Key Lessons: Energy Efficiency Retrofits

Leanne Tobias, author of Retrofitting Office Buildings to be Green and Energy-Efficient (recently published by the Urban Land Institute), shares a high-level summary of readily-available energy efficiency opportunities. Here's a snapshot:

• Energy efficient and sustainable retrofits can be remarkably cost-effective. A number of the case studies profiled in the book achieved payback in a year or less, and an early sample of U.S. LEED-certified retrofits showed average paybacks of approximately 17 months, with an average cost per square foot of just $.21.
• Many of the retrofit approaches with the best paybacks are the simplest. A few of the readily implemented, low-cost ways to reduce building energy use include such approaches as operational changes, lighting retrofits, and replacing constant speed drives with variable speed drives on major mechanical equipment. These types of changes are not technologically advanced, but they are extremely cost-effective.
• There are also some fascinating technological advances being introduced to the building energy-efficiency market. Among them: smart meters and smart grid systems, which use wireless technology to monitor and optimize energy use in real time.
• One of the most intriguing trends is the extensive use of passive heating and cooling to minimize reliance on mechanical systems. Passive heating and cooling approaches include the use of natural ventilation, the uncovering of thermal mass (exposing walls and underfloor slabs), and the use of vents or chimneys to regulate interior temperatures.

Click here to read the entire post published in GreenerBuildings.

Building Star: The latest star for energy efficiency?

First there was Energy Star, the long-established energy ratings system. Then came Home Star, an energy-efficiency incentive program for homeowners. Now, the Senate is contemplating creating a Building Star program to provide incentives to commercial buildings related to their energy efficiency. Is the third star a charm?

Rebate and incentive programs are proliferating for commercial building owners, most all regionally managed and delivered by utility companies. Building Star has catalytic potential to nationally incent and reward energy-efficient measures in commercial and multi-family residential buildings. Additional incentives plus low-cost project financing ... there's a potential star in the making.

According to Environmental Leader:

The bill was introduced March 4 by Sen. Jeff Merkley (D-Ore.) and Sen. Mark Pryor (D-Ark.).

The program is expected to save building owners more than $3 billion on their energy bills annually by reducing peak electricity demand. “Buildings represent 40 percent of the energy used in the United States, and many have old equipment that waste energy and money,” Pryor said.

In addition to rebates to reduce the cost of energy-saving measures such as high-efficiency heating and improved insulation, “Building Star” would also extend low-interest financing options to small businesses and other building owners.

Through the umbrella group Rebuilding America, Building Star has the support of the National Electrical Contractors Association, the Energy Future Coalition and the Center for American Progress Action Fund. The American Architectural Manufacturers Association also has pledged its support for the measure.

Among items proposed to be covered by the Building Star incentives are:

- building envelope insulation;

- mechanical insulation;

- windows, window films, and doors;

- low-slope roofing;

- HVAC equipment, water heaters, and boilers;

- duct testing and sealing;

- variable speed motors;

- interior and exterior lighting;

- building energy audits, commissioning, tune-ups, and training; and

- energy management and monitoring systems.