AABE Energy & Environment ConferenceEnergy In The Built Environment: AABE Energy & Environment Conference Energy In The Built Environment Wayne X. Young Performance Contracting Engineer Honeywell International AABE Atlanta Chapter


Energy Consumption in the US: Energy Consumption in the US Commercial buildings consist of 30% of all energy consumed in the US. 45% of energy consumed is produced in the US and purchased from the Middle East, Africa, Canada and South America. US DoE projects US energy usage to increase by 25% in 2050. Environment is negatively affected, climate change is an international issue. Population growth by 2025. Demand in China and India has increased. Energy mix in US is coal, natural gas, hydro and renewables. Weather, demand and international relations are factors in the cost of energy in the US. The elderly, disabled, African-Americans and other minorites are negatively affected by rising energy costs.


Staying Warm to Cost up to 90% More: Staying Warm to Cost up to 90% More New York – Estimated 50% increase in winter heating oil charges Midwest – Predicted 70% higher heating costs Charlotte, NC – Prior to Hurricanes Katrina and Rita, natural gas costs had increased 57% over last winter, resulting in projected increases of $60 to $90 a month for its residential customers’ bills this winter


The Problem: Energy Prices and Volatility: The Problem: Energy Prices and Volatility Gas Dereg Wholesale Oil Embargo 1 Oil Embargo 2 Gas Dereg Retail Elec Dereg Wholesale Elec Dereg Retail Gas Fired Gen Iraq 1 Oil Adjusted to 2003 US$


Slide5: Energy Consumption – K-12 & Higher Education Sector Source: Energy Information Administration, Commercial Building Energy Consumption & Expenditures Energy Consumption Facts


Slide6: Energy Consumption – All U.S. Commercial Buildings Total Energy Consumption: 17.5 Quadrillion Btu Excludes buildings in the industrial sector. Source: Buildings Energy Data Book, DOE Energy Consumption Facts


Slide7: Energy Consumption – Commercial Buildings by Type Source: Energy Information Administration Commercial Buildings Energy Consumption Survey Energy Consumption Facts


Why Honeywell Energy Services?: Why Honeywell Energy Services? Rising Energy Costs Aging Infrastructure Deferred Maintenance Constrained Budgets


Honeywell Offers: Honeywell Offers MiniRetrofits Performance Contracts with Guarantee Both Options Contain: Benefits For Large Commercial Buildings, Industrial Facilities and Municipalities Internal or External Financing Mixture of Energy Efficiency, O&M Management and Life Safety Measures Environmental Impact Studies Long Term Savings and Service Comfort and Security


Slide10: Includes financing One contract - solution, financing and ongoing service all on one piece of paper Married With Identified Need Cost-Justified Need CORE NEED Operational Efficiency Uptime Comfort Cameras Life Safety Boiler Controls Upgrade Chiller Etc. QUICK PAYBACK ECMs AND OPS BUNDLE Life Cycle Costs Replacement Costs Lighting Variable Frequency Drives (VFDs) Energy Management Power Factor Correction Motors Lighting Steam Traps Energy and Operational Savings - Bundle Consultative approach focusing on understanding the customer through questioning and listening What are MiniRetrofits?


Characteristics of MiniRetrofits: Characteristics of MiniRetrofits Cost justified Bundled solution Financing offered Owner occupied Non-guaranteed Non-PC Legislative Requirements Core Need + Bundled Solution – Savings x Financing = MiniRetrofits


Types of Customers - MiniRetrofit: Types of Customers - MiniRetrofit High Traffic Characteristics Large volumes of air flow create opportunities for savings Examples Condos Theaters Convention centers Hotels Casinos Museums Libraries Banks Buying Behaviors Need to lower operating costs Need cost justified quick payback measures Mid-size industrials Characteristics Large energy spend - higher per unit cost of energy Examples Food and Beverage Chemical Commercial Printing Electronics and Plastics Manufacturers Computer and peripherals Transportation/Automotive Buying Behaviors Need to reduce operating costs to stay competitive – quick paybacks Lack of in-house expertise Deferred maintenance issues due to lack of investments on non-core side Current Customers (High Traffic And Mid Sized Industrials)


Why Non-Guaranteed?: Why Non-Guaranteed? Project Costs Project Costs Contract Expenses Guarantee Premiums Communication & Awareness Costs Measurement & Verification Costs For Typical Small Projects...


What are the added costs with a Guaranteed Performance Contract?: What are the added costs with a Guaranteed Performance Contract? Specific to US (added project costs – typical of the business): Risk guarantee premium (4 - 5%) Contractual legal costs to be incurred by client (est. $15K) Awareness and Communication Costs (est. $25K) M&V Setup costs (depends on size) (est. $5K) Concept Report Development Costs ($0.15 per square feet) Project Management Costs (7% of job Size) Ongoing M&V costs associated with guarantee (International costs vary by region)


Typical Energy Conservation Measures: Typical Energy Conservation Measures


List of ECMs: List of ECMs Lighting Source Convert to T-8 Lamps and Electronic Ballast Convert Incandescent Lamps to Compact Fluorescent Convert Parking Garage Lighting to T-8 or HID (Facilities within the City Bylaws, need to upgrade to Building Codes and Standards applicable to the region (4.6 fc)) Lighting Control Motion Sensors (Public Washroom Areas, Locker Rooms, Raquetball/Squash Courts, Party Rooms, etc…) Photocell Control (Main Lobby with lots of glass, Atrium, Skylights, Exterior Lights, etc…) HID Dimming Technology (Pool/Mfg./Garage areas with Metal Halide and Skylights) Timer Switches (Typically for Mechanical Rooms and Storage Rooms) 5 yrs 3 yrs 6 yrs 2-3 yrs 3 yrs 8 yrs 2-3 yrs


List of ECMs: List of ECMs Mechanical HVAC Fuel Conversion from Electricity to Natural Gas/Heating Oil Spa/Pool Humidifiers, Make-up Air Units, Enclosed Garage Ramp Heaters, Air Handling Units Isolate Atmospheric Heating Boilers when not in use Replace Atmospheric Heating Boilers with Hi-Efficient Boilers Centralizing Heating Systems Air Side Heat Recovery and Boiler Stack Economizer Flow Pumping Optimization (Valves) Cooling Tower Temperature Reset Application of Variable Speed Drives or Two Speed Motors Corridor Makeup Air Units DCW and Secondary Pumping Systems Cooling Tower Fans 5 yrs 1-2 yrs 5-8 yrs 8+ yrs 5-8 yrs 3-6 yrs 2 yrs 4-5 yrs 3-5 yrs 8-10 yrs


List of ECMs: List of ECMs Mechanical Building Automation (Energy Mgmt. Systems) Temperature Reset Outside Air Equipment Lockout Demand Limiting Economizer/Free Cooling On Demand Ventilation (CO2 Control) Scheduling (Shifts, Temperature, Utility Demand, etc) Garage Carbon Monoxide Control Mechanical Comfort Issues Example 1: Too Cold on the North Side of the Tower Example 2: Too Hot on the South Side of the Tower Example 3: Cooking Odors in the Corridors Example 4: Outdated Equipment or Humidity Issues 2-5 yrs 8+ yrs


List of ECMs: List of ECMs Mechanical Capital Defective Equipment Replacement (Chillers, Boilers, etc…) Addressing of CFC Issues Process Equipment (Laundry, Chemicals, Manufacturing) Mechanical Swimming Pools/SPAs Pool Covers (SPAs) Scheduling Pool Heaters OFF Push Button Showers Space Temperature Control (Temperature and Humidity) Building Envelope Roof/Wall (Spray Foam) Windows and Doors Sealing of Shafts and Piping Chase Cleaning, Landscaping and Pest Control Transportation (AFVs, Parking Spaces, etc.) 8+ yrs 12+ yrs 15+ yrs 2 yrs 1 yr 3-5 yrs 1-2 yrs 4-5 yrs 8+ yrs 4-5 yrs Varies Varies


List of ECMs: List of ECMs Water and Sewage Water Closets (Toilets) Faucet Aerators and Showerheads Groundskeeping Supply Side Issues Power Factor Issues Suite Sub-Metering Consolidation of Meters Real-Time Utility Metering Detects Equipment Failure Detects Leaks Rate Optimization (Green Power Purchasing, etc.) Interval Meters (Real Time) 5 yrs 2 yrs Depends 5-8 yrs Depends 3-5 yrs Depends Depends


List of Life Safety Measures: List of Life Safety Measures Security Closed Circuit Television (CCTV) Card or Fingerprint ID Access Technology Motion/Photocell Sensors Life Safety Carbon Monoxide Monitoring Fire and Security Alarms Emergency Call Center Green Cleaning Pest Control Construction (to local codes) 5 yrs 2 yrs 2-3 yrs 5-8 yrs Depends N/A Depends Depends Depends


All Roads Lead to Service: All Roads Lead to Service Comfort Increased Productivity Reduced Costs (Energy, Environment & Health) Safety and Security Environmental Impact Services Latest Technology and Products Reliability Energy Savings Tax Credits and Rebates (Energy Star and LEED) Performance (Energy & Environmental Education) (Literature provided for more information)


Slide23: A widely distributed element that forms organic compounds in combination with hydrogen, oxygen, etc., Paper coated on one side with dark waxy substance to transfer characters from original to an under sheet of paper  The world's next biggest commodity market x may become world's biggest market overall currently valued over $30 billion “carbon trading” market skyrocketing to over $1 trillion


Slide24: Reach 50% reduction goal by 2050 Need to stabilize global CO2 levels The USA is the world's largest CO2 polluter CO2 is mainly emitted by burning fossil fuels CO2 represents more than 70% - of all greenhouse gases


Slide25: Market mechanism to tackle global warming Took off as a market after the Kyoto Protocol - 2005 Industrialized countries must reduce total greenhouse gas emissions by an average 5.2% compared with 1990 levels between 2008-2012 Participants have national target for reducing carbon dioxide emissions


Slide26: Where CO2 comes from is less important than total amounts Rigidly forcing emission reductions country-by-country, (or company-by-company) has not worked Carbon traders have two choices spend the money to cover the costs of cutting emissions continue polluting and pay someone else to cut their pollution Enables emissions to be cut with minimum price tag


Slide27: Green House Gas credits AKA Certified Emission Reduction credits (CER’s) CER’s are created by emission reduction projects in developing countries CER’s can be sold to countries to offset their overall emissions Projects that reduce emissions in the USA cannot use CER’s USA is not a signatory to the Kyoto Protocol There is a voluntary market for GHG credits for energy efficiency Voluntary credits in the USA are Verified Emission Reduction credits (VER’s) VER’s are voluntary and still have standards that need to be adherence Validation & certification will be required to monetize these credits Credit is equal to (1) ton of (CO2e) into the environment. USA market for Verified Emission Reduction credits is growing


Slide28: Clinton Climate Initiative - CCI www.clintonfoundation.org


Slide29: Foundation launched (CCI) in August 2006 President Clinton announces a new program that brings together cities, building owners, banks and energy-service companies to reduce greenhouse gas emissions in existing buildings Mission is to apply the Foundation’s business-oriented approach to fight climate change in practical, measurable and significant ways In its first phase, CCI is working with the (40) Large Cities Climate Leadership Group – C40 An association of large cities pledging to accelerate their efforts to reduce greenhouse gas emissions and serve as models for other cities Clinton Climate Initiative - CCI


Slide30: Clinton Climate Initiative - CCI Addis Ababa, Bangkok, Beijing, Berlin, Bogota, Buenos Aires, Cairo, Caracas, Chicago, Delhi, Dhaka, Hanoi, Hong Kong, Houston, Istanbul, Jakarta, Johannesburg, Karachi, Lagos, Lima, London, Los Angeles, Madrid, Manila, Melbourne, Mexico City, Moscow, Mumbai, New York, Paris, Philadelphia, Rio de Janeiro, Rome, Sao Paulo, Seoul, Shanghai, Sydney, Toronto, Tokyo, and Warsaw


Slide31: Number of Signatories to date: 4 6 7


Slide32: We, the undersigned presidents and chancellors of colleges and universities, are deeply concerned about the unprecedented scale and speed of global warming and its potential for large-scale, adverse health, social, economic and ecological effects. We recognize the scientific consensus that global warming is real and is largely being caused by humans. We further recognize the need to reduce the global emission of greenhouse gases by 80% by mid-century at the latest, in order to avert the worst impacts of global warming and to reestablish the more stable climatic conditions that have made human progress over the last 10,000 years possible.


Slide33: Commitment Process Timeline create institutional structures to guide the development and implementation of the plan complete a comprehensive inventory of all greenhouse gas emissions develop an institutional action plan for becoming climate neutral 2 months 12 months 12 months


Slide34: Clinton Climate Initiative - CCI Enables partner cities to reduce energy use and greenhouse gas Create a purchasing consortium to pool buying power of cities to lower prices of energy-efficient products and accelerate the development of new energy-saving technologies. Consortium will partner with vendors, resulting in lower production and delivery costs Key products include building materials, systems, lighting products, clean buses, garbage trucks, and waste-to-energy systems Mobilize best technical experts worldwide to create and implement programs that reduce energy use and greenhouse gas emissions


Slide35: Through its partnerships, CCI will provide technical assistance in these areas: building efficiency clean transportation systems renewable energy production waste management water and sanitation systems CCI will recruit, train and manage the deployment of experts to help implement energy-saving technology techniques and strategies Clinton Climate Initiative - CCI


Slide36: Develop common measurement and information flow tools allowing cities to track and share the effectiveness of their programs Tools will enable cities to take inventory of their greenhouse gas emissions, which will help direct their activities, and measure their progress CCI’s online information network will provide forums for technical experts and policy-makers to access data and share best practices Clinton Climate Initiative - CCI


Slide37: Accordingly, we commit our institutions to taking the following steps in pursuit of climate neutrality: Initiate a comprehensive plan to achieve climate neutrality ASAP Within two months of signing this document, create institutional structures to guide the development and implementation of the plan Within one year of signing this document, complete a comprehensive inventory of all greenhouse gas emissions (including emissions from electricity, heating, commuting, and air travel) and update the inventory every other year thereafter x x x


Slide38: Within 2 years of signing document, develop an institutional action plan for becoming climate neutral, which will include: A target date for achieving climate neutrality as soon as possible Interim targets for goals & actions that lead to climate neutrality Make climate neutrality and sustainability a part of the curriculum Expand research to achieve climate neutrality Develop mechanisms for tracking progress on goals and actions


Slide39: Initiate (2) or more of the following tangible actions to reduce greenhouse gases while the more comprehensive plan is being developed Establish a policy that all new campus construction will be built to at least the U.S. Green Building Council’s LEED Silver standard or equivalent. Adopt an energy-efficient appliance purchasing policy requiring purchase of ENERGY STAR certified products in all areas for which such ratings exist.


Slide40: Publicize action plans, inventory, and periodic progress reports Provide those reports to the Association for the Advancement of Sustainability in Higher Education (AASHE) for posting and dissemination In recognition of the need to build support for this effort among college and university administrations across America, we will encourage other presidents to join this effort and become signatories to this commitment


Slide41: Establish policy of offsetting greenhouse gas emissions generated by air travel paid for by our institution Encourage and provide access to public transportation for all faculty, staff, students and visitors Within (1) year of signing document, begin purchasing or producing at least 15% of institution’s electricity consumption from renewable sources Establish policies that support climate and sustainability shareholder proposals at companies where our institution's endowment is invested Participate in Waste Minimization component of the national RecycleMania competition, adopt 3 or more measures to reduce waste