Fed lcc-2010-green buildings


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Fed lcc-2010-green buildings

  1. 1. April 6 & 7, 2010, Toronto LIFE CYCLE COSTING FOR THE PLANNING, DESIGN, CONSTRUCTION AND OPERATION OF INTELLIGENT AND GREEN BUILDINGS David Katz, MBA, BA Sustainable Resources Management Inc. Tel: 416 - 493 - 9232 Fax: 416 - 493- 5366 Email: dkatz@sustainable.on.ca Building Intelligence Quotient Consortium Email: dkatz@building-iq.com 3/17/2010 1
  2. 2. AGENDA • Review the LCC issues for GREEN and Intelligent Buildings • Examples of applying LCC to Green Building options • Other life cycle environmental attributes covered under Life cycle analysis • Example of LCC for intelligent building choices • Funding for the energy investments • Associations and agencies that have programs to help pay for the investments especially if they provide life cycle benefits. Review your interests and share info on any projects and challenges of applying life cycle costs under budgetary restraint 3/17/2010 2
  3. 3. Intelligent and Green Building Investments Typical problems that LCC can resolve: Having lower life cycle costs provides the incentive to overcome the lower first cost or budgetary restrictions. Building valuations that look at the revenues and the operating costs are improved by having the lower operating costs of better facilities. Making repairs to existing equipment versus advancing the purchase of new better performing equipment 3/17/2010 3
  4. 4. Application to design and construction process LCC analysis has many applications in the capital asset, buildings and infrastructure projects that use the design and construction process. Choosing the appropriate materials and costing out the operating and maintenance cost of different alternatives provides the design and construction professional the ability to include the owner’s financial criteria as part of the process. 3/17/2010 4
  5. 5. EVALUATING AND PRESENTING THE RESULTS Evaluation approaches Total present value Net present value Simple payback True payback Equivalent uniform annual cost Rate of return KWH savings/investment dollar 1. Savings/benefit to investment ratio 2. Graphic analysis 3/17/2010 5
  6. 6. 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 3/17/2010 6
  7. 7. 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 3/17/2010 7
  8. 8. 3/17/2010 8
  9. 9. 3/17/2010 9
  10. 10. Electricity and Peak Demand Charges –Time of Use Rates ????¢ 8¢ ? 12¢ ? 4.7¢ / 5.5¢ 3/17/2010 10
  11. 11. Life Cycle Costing: Retrofit Applications
  12. 12. Multi-Residential Building Service Life Approximate design and pre-repair service life of the building elements Emergency Power Conclusions: Lighting First costs and rent revenues are Power Supply & Distribution only part of the Life Cycle Plumbing Cost Story. Drainage When all the repair items are Domestic Water Systems totaled they may be as much as the cost of the Ventilation original building. Heating and Cooling Roofs Exterior Doors Windows Exterior Walls Building Framing Balconies Pre-Repair Service Life (yrs) Garage Total Design Life to Site Structures Replacement (yrs) 0 10 20 30 40 50 60 70 80 Based on High-Rise Apartment Repair Age of the building Needs Assessment CMHC 1998
  13. 13. Typical Building Maintenance Costs Annual building renewal investment (as % of original building cost)
  14. 14. Conventional Cost Analysis Average Payback Period (PP) and Return on Investment (ROI) on single technology products. (Source: Energy Cost Savings Council)
  15. 15. Life Cycle Costing: New Building Design Applications
  16. 16. New Building Design LCC and Sustainable Design Technology An LCC assessment Typical Sustainable can be used to assess Technology Applications: options concerning site Green Roofs design, and material and equipment Greywater recycling selection to improve overall building energy Photovoltaics efficiency. Ground source heat pumps Natural ventilation 3/17/2010 16
  17. 17. Sustainable Ecosystems Appropriate Site Selection Land 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 Corridors When 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 Reduction Natural corridor and Riparian Zone Minimizing outdoor lighting, without compromising safety, can significantly reduce environmental threats to nocturnal wildlife species. Native Species Planting Using plants that are native to a site reduces irrigation, lowers pesticide and fertilizer use, and cuts Native plant species – Bullrushes, Canadian Goldenrod, and Switchgrass maintenance costs. Site design should ensure 75% of plantings are native. Roadway Naturalization Roadway edges and easements can support plantings that provide habitat for natural corridors and can be designed to reflect topographical and environmental conditions. ECD Energy and Environment Canada Ltd. Brownfield at mouth of the Keating Channel, Toronto, ON
  18. 18. Sustainable Energy Sources Microclimatic Design Building design that maximizes solar access in winter for Wind turbine at the Canadian National Exhibition, Toronto, ON 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 Heating Buildings with sufficient southern exposure can capture sunlight in winter and release it as heat, reducing energy Photovoltaic curtain costs. In the summer, trees, window overhangs and wall spandrels sunshades block sunlight, keeping the building cool. Natural or Hybrid Ventilation Buildings 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 Photovoltaic combined with traditional systems in a hybrid design. bus shelter Solar-Powered Street Furniture Signs, bus shelters, street lights, and parking meters can easily function off-grid with a small solar array. Community-Based Energy Generation Photovoltaic light Renewable energy comes from non-fossil fuel based South-facing sources, like the sun, wind, water or earth. Governments, housing, Milton utilities and individuals should consider these sources Vegetated "green" roof, Keynes, UK both for their environmental sustainability and their Mountain Equipment Co-op, stable, long-term costs. Toronto, ON ECD Energy and Environment Canada Ltd.
  19. 19. Sustainable Resource Use Eco-Industrial Synergies One 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 Buildings New 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 Use Tires, 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. Gooderham and Worts Distillery District, Toronto, ON Sustainable Material Use The life cycles (or cradle-to-grave environmental effects) of materials should Mountain Equipment be considered in their selection. Variations in the ways concrete, steel, Co-op, Toronto, ON. Structure consists of timber, carpet, etc. are produced, materially composed, used, and disposed salvaged timbers and of strongly affect their environmental impact. fly-ash concrete. On-site Composting and Recycling Niagara 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. ECD Energy and Environment Canada Ltd.
  20. 20. Sustainable Transportation Improved Building Access The 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 Traffic Walkable 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 Arrangements The 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. Designated carpool lot Carpooling Shared vehicle transportation reduces automobile usage and Bike lanes and bike storage facility congestion. Convenient pick-ups areas and a voluntary database of occupants’ postal codes help to promote carpooling. Alternative Fuel Re-Fueling Stations Public 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 Hydrogen re-fuelling station, grow in number. Canadian National Exhibition, Toronto, ON ECD Energy and Environment Canada Ltd.
  21. 21. Sustainable Water & Wastewater Services Stormwater Management Site 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, Water Lving Machine wastewater facility, Nova Pollution Control Lab, Scotia Portland, Oregon Bioswale Design Grassed or vegetated drainage channels, an alternative to traditional curb and gutter stormwater management, retain water and break down road contaminants. Planters Impermeable Paving Riparian Permeable Snow Pile Placement Zone Bioswale Paving Snow piles should be placed away from drainage courses and storm drain inlets to diminish impact of salts and other toxins on stream courses. Water Table Riparian Zone Protection Vegetated transition areas between a body of water and upland area control erosion, filter run-off, and provide animal habitat. Innovative Wastewater Treatment Grey-water recycling, composting toilets, constructed wetlands and Living Machines can reduce overall Storm water consumption and reduce BOD content in Stream Sewer wastewater to levels lower than those produced through conventional treatment. Desirable and undesirable stormwater management practices ECD Energy and Environment Canada Ltd.
  22. 22. Sample LCC Application to Sustainability Green Roofs DEARBORN, 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.
  23. 23. LCC calculation of Greg Kats
  24. 24. Softcoat LowE Meets the Code and provides lowest first cost. 3/17/2010 24
  25. 25. Triple Glazing & Heat Mirror Alternatives cost more – but save more energy 3/17/2010 25
  26. 26. IG Insulating Properties 14.30 16.00 14.00 12.00 9.09 8.00 10.00 8.00 3.45 4.00 6.00 2.22 4.00 2.00 - ) ) ) 1" 1" 1" r r r (A (A (A -E -E le w w b ou Lo Lo D d t of ar S H Data obtained using L.B.L. (Lawrence Berkeley Laboratories) Window 5.2 analysis program (nfrc/ashae) 3/17/2010 26
  27. 27. IG Solar Heat Gain Coefficient 0.70 0.67 0.70 0.60 0.50 0.38 0.32 0.30 0.40 0.30 0.20 0.10 - -E -E e -E le bl ow w ip w ou Lo Lo Tr tL D e d le f it ar So ip nl H Tr Su 3/17/2010 27
  28. 28. Reduce Energy Bills (Operating Costs) 3/17/2010 28
  29. 29. Reduce HVAC Requirements (Capital Costs) 3/17/2010 29
  30. 30. Reduced Lighting Requirements (Capital & Operating Costs) 3/17/2010 30
  31. 31. Break-even Analysis using cash flow method Low E 2 Triple Glazing Heat Mirror $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3/17/2010 31
  32. 32. Risk and sensitivity to above analysis. Fuel Escalation could less than 4% causing Breakeven to be longer R 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. 3/17/2010 32
  33. 33. Investment Source: Sustainable Building Technical Manual 3/17/2010 33
  34. 34. Comfort 3/17/2010 34
  35. 35. Eliminate Condensation & Mould 3/17/2010 35
  36. 36. Sound Control 3/17/2010 36
  37. 37. Triple Glazing- Optimum Daylighting 3/17/2010 37
  38. 38. Is this Tinted Glass Building Green and Intelligent ? What are the tradeoffs in HVAC, Daylighting & Productivity 3/17/2010 38
  39. 39. 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 3/17/2010 39
  40. 40. Financial Benefits of Green Buildings 3/17/2010 40
  41. 41. Sustainability Matrix The David Lucile Packard Foundation Los Altos Project Net Present LEED™ LEED™ LEED™ LEED™ Living Market Values Certified Silver Gold Platinum 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 $ - $3.1 $3.0 $4.2 $4.4 $4.0 after 30 years http://www.packard.org/pdf/2002Matrix.pdf 3/17/2010 41
  42. 42. Green and Intelligent Building Convergence Review Energy management for HVAC, Lighting & Demand Response – CBIP – Energy Star Green Buildings – Environment - LEED & Green Globe Access and Security for safety of occupants and visitors Cabling and Wireless to increase revenue and lower costs Communications to increase value and productivity Digital Signage for instant information and advertising Interconnectivity to other buildings and the community 3/17/2010 42
  43. 43. Who is working on bringing these issues all together to evaluate alternatives and make sound economic choices? 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 Roadmap www.caba.org/ibrm 3/17/2010 43
  44. 44. Analyzing the Life Cycle Cost of Integrated Building Systems Produced by: Thomas J. Lohner, P.E. Vice President, TENG Solutions 3/17/2010 44
  45. 45. Systems Integration - Comparative Life Cycle Cost You Can Not Afford Not to do it Right 3/17/2010 45
  46. 46. Facility Integration Life Cycle Costs First Cost Changes, Additions & Upgrades Operating & Maintenance Utility Costs 3/17/2010 46
  47. 47. Typical Building Approach to Automation No Integration ! 5 User Interface Workstations! Emergency Generator Main Service Switchgear Computer Room A/C UPS Door Access Control & HVAC Control System Lighting Control System Intrusion Detection Fire Management System
  48. 48. Non-Integrated Building Engineering Left up to Contractors Sole Sourcing Required to Provide Integration - $$$$ Stand Alone Systems - Single Purpose Nobody Responsible for Technology Integration 3/17/2010 48
  49. 49. Partial Integration Concept Proprietary Control Sub-systems Modbus Database Client FMS Workstation Server Main Service Switchgear Web Server Facility IP Network Security Console Emergency Generator SNMP over IP Computer Web Server Room A/C Web Server Web Server Web Server UPS Door Access Control & Lighting Control System HVAC Control System Fire Management System Intrusion Detection
  50. 50. Partial Integration Issues Software Integration on IP networks Use Web Enabled - FMS Application Program Methodology Employed for Existing Buildings Hardware Intensive - Many I/O Servers 3/17/2010 50
  51. 51. BENEFITS Partial Integration Single User Interface for all Systems Web based GUI - Defacto Standard Permits Migration to Open Control Networks - Competitive Bids ! Permits Development of Campus Wide Relational Database Database Permits - Maintenance Management , Energy Management , Asset Management, etc. 3/17/2010 51
  52. 52. Full Integration Concept Open Standards Based Control Sub-systems Modbus Database Client FMS Workstation Server Main Service Switchgear Web Server Facility IP Network Security Console Emergency Generator SNMP over IP Web Server LONTALK - EIA 709.1 & Computer Web Room A/C BACNET – ANSI/ASHRAE Server 135A UPS Door Access Control, Intrusion Detection, Lighting & HVAC Control System Fire Management System
  53. 53. Full Integration Issues Open Standards Applied Where Possible I/O Servers Minimized Number of Devices Reduced - Shared Information 3/17/2010 53
  54. 54. BENEFITS Full Integration Same as Partial Integration Approach PLUS Competitive Bids in each Building Integrated Building Sub-systems Lighting, HVAC, Power Management and Security Lowest Life Cycle Cost Approach 3/17/2010 54
  55. 55. Life Cycle Cost Analysis Assumptions 150,000 SF Building Major 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 Cost 50% of the Proprietary Systems are Replaced (Next Generation) 20% of the Open Systems are Replaced (Age & Obsolescence) Average Cost per Control Device - $400 Open and Proprietary Control Devices Base Bid Costs are the Same Training Costs - $3000/ GUI; $1500/ Protocol; 50% of 1st year cost for years 2 and up 3/17/2010 55
  56. 56. Life Cycle Cost Analysis Assumptions Base Year Base Year Annual Dynamic Initial Service Changes & Control Sub- Cost Contract Modificatons systems ($/SF) ($) (% 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
  57. 57. Comparative First Costs Non- Integrated Partial Full System Component Building Integration Integration Graphical User Interface - Hardware & Software 5 @ $15K 1 @ $20k 1 @ $20k Equipment Networking Uprades 0 4 @ $2k 4 @ $2k Web Servers 0 5 @ $10k 3 @ $10k Control 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%!!!
  58. 58. Non-Integrated HVAC, Lighting & Intrusion Detection Echelon World Headquarters Dimmable Lighting Control VAV Boxes No Occupancy Control Blinds & 24v Wiring
  59. 59. Integrated HVAC, Lighting, Intrusion Detection & Blind Control Echelon World Headquarters User Scene Control Switch Lighting, HVAC & Occupancy Sensor Control Trunk Sensor and 120v Wiring
  60. 60. Changes, Additions and Upgrades Issues Cost Premium Paid for Additions & Changes to Proprietary Controls Limit Scope of Future Improvements and Modifications Cost Premium for Non Competitive Service Contracts 3/17/2010 60
  61. 61. Changes, Additions and Upgrades (Annual Costs- 2nd Year & On ) Non Competitive Non- Cost Integrated Partial Full O & M Cost Issues Premium Building Integration 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 @ $2k Year 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
  62. 62. Operating and Maintenance (Annual Costs- 2nd Year & On ) Non- Integrated Partial Full System Component Building Integration Integration Training $ 11,250 $ 5,250 $ 3,750 Improved O & M Staff Efficiency 0 SOFT SOFT IT Support 5 @ $2k 1 @ $3k 1 @ $3k Management 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
  63. 63. Typical Energy Use Profile Other (Elevators, etc.) 5% Ave Annual Energy Power Use 25% Ave Annual Energy $0.07 / SF / YR Use $10,000 / YR $0.33 / SF / YR Lighting $50,000 / YR TOTAL HVAC $1.33 / SF / YR Power $200,000 / YR Other HVAC Lighting 30% Ave Annual Energy 40% Ave Annual Energy Use Use $0.4 / SF / YR $0.53 / SF / YR $60,000 / YR $80000 / YR
  64. 64. Energy Costs (Potential Annual Cost Savings) Non- Savings Energy Integrated Partial Full System Component Factor Cost ($) Building Integration Integration Integrated Lighting & HVAC Control 5% $60,000 0 0 $3,000 Improved Load Factor ( .5 to .55) 5% $200,000 0 $10,000 $10,000 Better Maintained Equipment 1% $60,000 0 $600 $600 Coordinated Supply/Demand EMS Strategies 5% $200,000 0 $10,000 $10,000 Integrated Building Control System Savings $0 $20,600 $23,600
  65. 65. System Integration Life Cycle Cost Summary Non- Integrated Partial Full Life Cycle Cost Component Building Integration Integration Comparitive First Cost $75,000 $78,000 $33,000 Changes , Upgrades & Additions $129,379 $126,379 $88,052 Operating & Maintenance $21,250 $5,250 $3,750 Ut ility Cost $200,000 $179,400 $179,400 Net Present Value $2,325,232 $2,074,091 $1,773,493 Discount Rate 9% Life Cycle Period (yrs) 10 Savings $551,739 $300,598
  66. 66. Conclusion: Full Integration will Result in the Lowest Net Present Value The Value of the Integrated Approach will Increase w/ IT Advances Information will be your Competitive Advantage 3/17/2010 66
  67. 67. What are the opportunities to get funding for upgrades and retrofit alternatives that provide lower life cycle costs? Federal Government Programs Ontario Energy Board funding for Enbridge and Union Gas Demand Side Management Ontario Power Authority Conservation Programs Local Distribution Companies – Powerwise Energy Service Companies (ESCO) Financial Institutions for Leasing or Borrowing Private energy companies for onsite generation 3/17/2010 67
  68. 68. Applications NRCan has a number of building upgrade programs depending on size of building NRCan has developed new RETScreen tool for energy efficiency Renewable and Clean generation incentives Peak Reduction and Demand Response Programs pay for energy management systems that provide controls and M&V 3/17/2010 68
  69. 69. Specifications For 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 69
  70. 70. Features & Benefits New Building Automation Systems and Upgrades contribute to energy savings. New chillers, VSD, Lighting Systems all offer more interoperability and controls Most incentive programs require a measurement and verification plan as proof You can’t manage what you can’t measure Intelligent buildings are GREEN and Sustainable 3/17/2010 70
  71. 71. Federal Programs Available Natural Resources Canada's Office of Energy Efficiency now offers the ecoENERGY Retrofit Incentive for Buildings, the commercial/institutional component of the ecoENERGY Retrofit financial 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 3/17/2010 71
  72. 72. Provincial Programs Available Ontario 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 3/17/2010 72
  73. 73. Other Programs Available Renewable and Clean Standard Offers Toronto Better Building Partnership Toronto Atmospheric Fund – Financing BOMA Toronto – CDM OPA for Continuous Commissioning and Next Gen Building Automation Tax credits and Class 43 Accelerated Depreciation on qualified equipment 3/17/2010 73
  74. 74. Financing Options Self – Finance – Your cost of money Toronto Atmospheric Fund – Financing Lease or Rent – morEnergy Options Low interest loans – Banks and Credit Unions Energy Service Companies using Performance contracts Carbon Credits and other Trading Schemes 3/17/2010 74
  75. 75. What is ERIP? Provides incentives for electrical retrofits in your business Replaces inefficient products with high-efficiency ones, which will lower your operating costs Offers incentives for sustainable, measurable and verifiable energy retrofits that result in on-peak demand savings and annual energy savings 3/17/2010 75
  76. 76. Program Overview ERIP focuses on: 1. Lighting and motors 2. Heating, ventilation and air conditioning 3. Overall electricity systems ERIP incentives are calculated 1. For a set sheet of activities 2. 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. 3/17/2010 76
  77. 77. How ERIP Works The 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. 3/17/2010 77
  78. 78. ERIP tracks Prescriptive For predefined technologies with corresponding per unit or performance basis savings measures Will involve replacements and upgrades to existing systems Incentive provided is based on the calculation of what is installed Custom For more specific solutions to electricity efficiency retrofitting Technology, equipment and systems are evaluated on the basis of their power and energy performance improvement Incentive offered based specifically on the level of improvement. 3/17/2010 78
  79. 79. Contact Info David Katz, MBA, BA Sustainable Resources Management Inc. 6 Morning Gloryway Toronto, Ontario Canada M2H 3M2 Tel: 416-493-9232 Fax: 416-493-5366 Email: dkatz@sustainable.on.ca Building Intelligence Quotient Consortium Email: dkatz@building-iq.com 3/17/2010 79