Reducing Energy and Water Bills
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Reducing Energy and Water Bills

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Fraser Allport, CEO of Energy, Water, and Taxes, LCC, provides the tools to reduce the energy, water and tax bills for your plant, property or facility. Fraser helps you understand that energy,......

Fraser Allport, CEO of Energy, Water, and Taxes, LCC, provides the tools to reduce the energy, water and tax bills for your plant, property or facility. Fraser helps you understand that energy, water and tax bills are variable expenses that can, and need to be, proactively managed.

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  • 1. The Big PictureThe 21st Century “ Smart “ Building is all about Enhanced Efficiencies and Productivitydriving Profitability. 21st Century HW and SW is driving this Second Deming Revolutionin Total Quality Control and Total Workplace Management. Please visit : www.deming.orgProfitable Green projects are " Eco-Pragmatic " : Economics, not politics, is the driver.Use Less and Produce More. Thats the common-sense business definition of " Green "that is both market-driven and makes sense in the real world. Your Property’s HW andSW are the Supply Chain that delivers Efficiency and Excellence, which then in turndrives Productivity and Profitability. So Master The Logistics – Get your HW and SW to perform at 100%.
  • 2. The Problem• Most facilities substantially over-pay three of their largest variable costs: Their Energy, Water and Tax bills. But these are Variable Expenses, not Fixed.• You can reduce these three expenses by proactively combining 21st Century Green Technologies with various Tax Incentives.• Reducing O&M will directly improve the Profitability of your Property / Plant / Facility.• Operational Excellence also elevates the Reputation and Branding of your P/P/F.• Total Quality Control yields higher Productivity, Occupancy, Lease Rates, and Market Value. SolutionIncrease the Asset Yield / NOI of your Property / Plant / Facility through Operational Excellence and TQC. That’s what “Green” is really all about.
  • 3. Today’s GoalsIncrease the Market Value, Profitability and Branding of your Property / Plant / Facility by : Reducing Energy, Water and Tax bills Reducing O&M Increasing Efficiencies – Operational and Cultural Future Proofing – As Green becomes Code Learning how to make “ Green ” and “ Sustainability ” a Profit Center, not a Cost item Understand The Business Imperative – Energy, Water and Tax bills are Variable Expenses that can, and need to be, proactively managed. They are not Fixed Expenses. Action Plan – Whether it’s Top Down or Bottom Up ... It is easier than you think to implement a simple plan that reduces your costs and enhances efficiencies. Just Start the Process and you are on your way to continual Progress.
  • 4. Reducing Energy, Water, and Tax Bills for Your Plant / Property / Facility This is normally a 2 or 4 hour CE Course offered by Energy, Water, and Taxes, LLC and approved by Florida’s Department of Business and Professional Regulation. This course is offered to all participants and their Staff as free CE upon request. Today we are going to talk about :Making Cost Reduction and Increased Efficiencies part of your Business PlanWHY you should care about reducing O&M and “ Future-Proofing ” your property.HOW to reduce Utility and Tax bills for your Plant / Property / Facility.WHAT simple and specific steps you can take to start an ACTION PLAN that gets Results.Mandate Performance – Implement “Results-Based” Projects that will make your Propertymore Valuable in many ways. Case Studies and Success Stories available upon request.
  • 5. The Five Myths of Going Green Let’s debunk the Myths first so that we all enter this presentation with an open-mind. Email to obtain this article by Fraser Allport in its entirety.1) MYTH: Green is politically driven. TRUTH - “ Green “ is about Energy, Water, and Tax Efficiencies that reduce O&M expenses. Green is economically driven. Reducing costs saves money. Eco-pragmatism is about saving money, not about politics.2) MYTH – Green costs a big, upfront outlay of Capital. Truth – Green is profitable from Day 1 when Quantifiable / Verifiable Savings exceed Project’s Financing cost. We generate a C/B Analysis that makes sense as a necessary and profitable Capital Improvement. Project generates Positive Cash Flow from Day 1.
  • 6. The Five Myths of Going Green cont.3) MYTH – Green curbs Growth because it costs too much and constrains the markets. TRUTH - Green and Sustainability will dominate The 21st Century, replacing 20th Century technologies and processes. The 21st Century is a new kind of World, with better HW and SW, better manufacturing processes, applications, and technologies. Going Green is really about 21st Century Modernization and Capital Improvement projects that enhance a property’s Productivity, Profitability, Asset Yield, and Market Value. Green is The Second Deming Revolution of TQC. Recognize a Paradigm Shift … and Adapt.4) MYTH: Green is an expensive “ luxury ” item, costing more than it saves. TRUTH : Green is increasingly coming down the cost-curve to “ Cost-Neutral ”. Use a discipline of projects with a a short payback period and Green will pay long-term dividends that greatly exceed upfront costs. So stop buying the cheapest, which actually costs more in the long run because that equipment uses more energy and water. Use Life-Cycle Analysis & procure Efficiency. 21st Century HW and SW that saves money, and lasts.
  • 7. The Five Myths of Going Green5) MYTH: The Business Owner / Property Manager must go it alone. TRUTH : Understand that State and Federal Energy and Water Tax Incentives improve a project’s ROI, Payback, and Cash Flow. State and Federal Tax incentives are, effectively, subsidies that discount a project’s cost for the builder and owner. There are also often many rebates and incentives from your local Utilities. Fact : Deming always advocated “ Embracing Change “. Your company and facility can be a Market Leader, or Laggard. Please see documentation at the links below:
  • 8. WHY You should care about reducing your property’s Utility and Tax billsThe Business Case for caring about your property’s Utility and Tax Bills Reducing O&M and Tax Bills improves Cash Flow and Profitability, which is a critical factor for surviving these difficult economic times. These days, a “ Competitive Advantage ” is having Cash when your competition does not. “ Sustainability ” has become its own Profit Center. Please see : A “ Green ” Property operates, leases and sells better. An efficiently-run and “ Lean ” Property offers many benefits that are detailed at: ( See Resources # 1-5 in Footnotes ) “ Future-Proofing ” ensures survival in the marketplace. Nobody wants to work at, lease space in, or buy a “ Brown ” property that has above-market O&M expenses, poor IAQ, bad Lighting, and poor climate control from an inefficient HVAC system.
  • 9. WHY should YOU care about reducing your property’s Utility and Tax bills? ( Cont. )If you are a Property Manager or Facility Engineer … Your job security and advancementdepends on your property’s performance and profitability, especially these days.People who are agents of change and bring profitable, money-saving ideas to Management …will be recognized and rewarded.Change the Culture to one of Total Quality Control, Expense Reduction, and Exceptionalism…and watch your bottom line improve quickly, dramatically and permanently.Energy and Water Efficiency is the “New Normal” for Property/Facility/Plant Manager.And Equipment runs better and lasts longer. You are the catalyst for Change at your Property – Be Proactive Take All The Credit for prompting action that elevates both you and the company/property.
  • 10. Another incentive for You to Act... Reducing your Energy, Water and Tax bills has many benefits: You have a specific, tactical issue / problem that needs fixing NOW. Benchmarking and Auditing – You want to quantify and verify in your facility. You cannot manage what you cannot measure. Cost Reduction & Cost Management – You want to reduce O&M facility-wide, permanently. Capital Improvements – You want to upgrade and “ Future-Proof ” your facility with 21st Century HW and SW. This is a must for your survival and success. ROI and Cash Flow – You are pursuing Sustainability as its own Profit Center. TQC – You are pursuing a strategic, systemic approach to Quality Control and Efficiencies boosting Profitability. Sustainability becomes a Competitive Advantage and a source of Cash Profits as its own SBU.
  • 11. Another Incentive for You to Act … ( Cont. )• When Green becomes Code – You see the handwriting on the wall in California and New York. Enforcing Green Codes is lucrative business, good PR, and politically popular for Federal, State and Local authorities. Expect more “ Green Codes “, and be prepared for the new “ Green ” Rules and Regulations. Become Green … before Green becomes Code.• Social Capital – For some companies, Green and Sustainability are as much about PR, Public Goodwill and Branding as they are about Cost-savings through Efficiencies. Which incentives motivate you to reduce Utility and Tax Bills ?
  • 12. A Holistic and Synergistic Checklist for Facility Management A “ Smart Building ” Strategy integrates HW and SWBuilding Information Modeling and Integrated Project DeliveryWater – Irrigation, Conservation, Storm-Water, Water TreatmentWater - Rainwater Collection, Cisterns, Clean Drinking WaterCold Water Cooling - Liquid Desiccant and Chilled Beam SystemsRevenue Enhancement for Hospitality PropertiesTax Reduction – Energy Tax Incentives and Cost SegregationRenewable Energy - Solar & Wind Power, BioMassGreen Architecture, Construction, Interior DesignGreen Roofs, Cool Roofs, and Integrated RoofsBuilding Envelope and Air Tightness TestingBuilding Envelope – Roof Leaks, Ponding, etc.“ Smart ” SW to interface with the “ Green ” HW.Fire Detection and Protection TechnologyRemediation – Mold, Mildew, and CondensationHVAC, DOAS, Geothermal, Heat Recovery, Enthalphy WheelsRefrigeration, Chillers, Cooling Towers, Condensate Recovery
  • 13. A Holistic and Synergistic Checklist for Facility Management ( Cont. )Preventive Maintenance – Ounce of preventionComputerized Management Maintenance SystemsEfficient Lighting – LED and many other 21st Century choices.Thermal Imaging, Insulation, Weatherization, Envelope SealingVentilation & Indoor Air Quality – Corporate & Building WellnessUtility Cost Recovery – We have multiple services that target Savings.EPA and Environmental Compliance – Federal to LocalCyber Security – Smartware, Green IT, Data Loss Protection, SIEMEnergy Management and Automation – Software and Hardware” Small Wind ” Power - As low as 5 mphLEED Commissioning and Green Building CertificationsEnergy Tax Incentives calculated, certified, and filed.Project Financing and Guaranteed SavingsPost-Project Service, Warranty, and GuaranteesPost-Project Training and Education for OccupantsPost-Project ROI - Leveraging “ Green “ Marketing and Branding of your facility
  • 14. Where Do You Start ? Categorize and Prioritize : Breaking The Whole into Parts What is most urgent in your facility ? What is biggest Expense in your facility ? What is/are your biggest day-to-day headache(s) ? What would simplify your Life/Job the most ? What is Management’s # 1 focus and Goal ? What are the issues from the floor and Staff ? What uses the most Energy and Water ?
  • 15. Eat The Elephant … One Bite At A Time Understand that Capital Improvements are always Strategic. Energy, Water and Tax efficiency for your facility are long-term projects. Rome was not built in a day. Like Home Improvement … You’ll get there. Understand that “ Future-Proofing ” your facility for The 21st Century and making it TQC Efficient requires looking at EVERYTHING – Every process and protocol. Take a holistic and synergistic approach to HW, SW, and People, and how they interact in your facility’s operations.
  • 16. How To Start The Process Start At The Beginning: Build The Team – C-Level Executives. Benchmarking and Baseline : Obtain a full audit of your Utility Bills going back as far as 5 years. You need a Baseline starting point because you cannot manage what you cannot measure. Determine how your Utility expenses break down: How much of your electric bill is HVAC vs. Lighting, vs. Machinery, etc. ? Where are you using, and losing, water, and how much ? Again, the starting point is obtaining Forensics. Quantify and Verify the math and the usage as your baseline starting point. Build your Team by getting outside / expert help to collaborate as a team with your in-house Staff.
  • 17. Breaking The Checklist Into Cost Segments HVAC Lighting Envelope Water HW - Engineering SW – CIO / CTO Finance – CFO / Procurement People, Process, and Protocols. Bad ( Occupant’s ) Habits vs. Best Practices. Occupant habits are critical. Get a Buy-In from C-Level Executives. Efficiency and Excellence become the Culture and The Mission.
  • 18. Prioritize – Let The Math Lead YouThe Utility Bill Audit, and The Energy and Water Audit of your facility will give you a baseline ofmeasurable and verifiable forensics. That accurate Math that will then tell you where your facilityconsumes the most … and thus, where you should start to pare costs.Start where you have the :Highest ROIShortest PaybackBiggest Tax IncentivesThat’s how you start – Your Facility’s audits will give your entire Team the forensics, which then takesyou in the direction of the most impactful, profitable, and quick-payback projects being undertakenin descending order. Outside experts will help you design a Critical Path Method for doing projects ina systematic and sequential order. The CFO will handle the Tax Savings component.Follow The Money and The Math …. Now That’s a simple and fool-proof Action Plan.
  • 19. Leverage The Gains “ The Paid - For - With Savings ” Model will allow you to self-finance your way through Capital Projects. Cost Reductions and Savings from the first Green project provide the capital for financing the next project. Stay at the process as a permanent Mission Statement. The TQC – Deming Model : Efficiencies enhance Operations, Margins, Cash Flow and Profitabilitya) Finish the project with Occupant Habits and Trainingb) Post-project Marketing for Branding, Goodwill and Social Capital.c) Who is responsible for post-project Measurement, Warranty, Guaranty, Maintenance and Service issues ?
  • 20. What’s First = An Action Plan Define, Commit, and Act• Understand that Sustainability is a Profit Center / Competitive Advantage.• Commit to Sustainability as part of a Mission Statement -• Take a Holistic and Synergistic approach to your Facility. Buildings are like bodies – Everything works together.• Do not compartmentalize amongst departments or people. Build a Team that communicates.• Engage everyone systemically and strategically.• Build Your “ Green Team ” - CEO, CFO, CTO, CIO, Chief Engineer• Who is your Team Leader / Project Coordinator ?
  • 21. What’s First = An Action Plan Define, Commit and Act ( Cont. )• Reach out to experts – Local, National, Global. This is not DIY / OTJ training• Demand Competitive Bids• Demand Performance Contracts / Success Fees• Demand Quantifiable / Measurable and Verifiable Data and C/B Analysis ( i.e. - Forensic Engineering is ROI, Payback Period, and Tax Incentive calculations. ) Commit All Macro, Strategic, and Systemic Change take time. Green and Sustainability are a process, not an event. This is not a tactical, short-term, one-off project. This is about profitable Long Term Capital Improvements that Future-Proof your property for the 21st Century.
  • 22. Action Plan Checklist Total Quality Control / Total Workplace Management will include :• Data Logging : Monitoring, Measuring, and Maintenance for your valuable Equipment.• HW and SW interface compatibility, including CMMS and EAM. Remember: None of this “ Green “ HW works without “ Smart ” SW to manage, monitor, and maintain it.• Post - project Warranties and Guarantees• Post - project occupant habits and training• Post - project Marketing, Branding and Enhanced Revenue opportunities.
  • 23. Commit To The Process• Commit : All Macro, Strategic, and Systemic Change takes time.• Green and Sustainability are a process, not an event. Greening your company and facility is not just something that the company pays lip service to and does once annually. Your company and facility truly become Green by understanding and practicing these methods.• The Deming Model: TQC and Efficiencies are the drivers for productivity and profitability.• This Model is called Asset Yield, and that’s what Green and Sustainability are really all about in the final analysis : Squeezing The Most From The Least.• Green is about Using Less … While Producing More. That’s The Mantra.
  • 24. The First Step in Your Action Plan1) Reach out to experts to conduct a Utility Bill Audit. This will give you Cost Recovery and Cash Flow, as well as a baseline for going forward. Find Consultants who work Nationally.2) Working with outside specialists, the CFO is responsible for the Tax Savings component ( i.e – Energy Tax Incentives, Cost Segregation.)
  • 25. Free and Easy Resources to assist you with starting an Action Plan1) Start with your City and State, and then do a simple internet search for your geography with words like : Energy and Water Audit / Utility Audit Sustainability Consultant Energy and Water Efficiency2) Ask your CPA about the deductions in IRS Code Section 179 D3) Ask your CFO about Tax Savings with “ Cost Segregation “4) Use the phrases that I outlined in the above Checklist. Pick the phrases and topics germane to your property, and then just add your city and state as part of the search.5) Contact your local Utility Companies and inquire as to the free programs that they offer for reducing Energy and Water bills.6) Ask your local Colleagues and the Trade Associations that you belong to what they have done to reduce their property’s Energy, Water, and Tax bills ?7) Subscribe to the free e-newsletter from sites that you research, visit, and like. and watch the knowledge come in daily. You will go Up The Learning Curve daily, in small, steady, incremental, manageable and voluntary bites that help you without overwhelming you. Please visit the many links throughout this presentation.8) Contact Fraser Allport at 305-351-6922 for a Free Consultation. Our firm works Nationally and Globally.
  • 26. Additional Free Resources for starting a simple and specific Action Plan The Ultimate Takeaway - Free Resources Galore : Links, Websites, Articles, Directories, Archived Webinars, etc.
  • 27. Start At The Beginning• Reach out to experts to conduct a Utility Bill Audit of your property / facility / plant. Only work with firms that have capabilities Nationally and Globally.• These audits are free. Find Auditors who work on a Success Fee – They only get paid for finding you savings. Demand forensics, and only pay for Results.• Be Proactive – Only you can start this process.
  • 28. Capital Improvements Take The Long ViewTake The Long View - 10 years to get 100%better and future-proof the property with21st Century technology.10% better per year for the next ten yearsstraight will get you to a completed, 21stcentury retrofit in 10 years = Take the longview.
  • 29. Summary• Future-Proof your property for survival and success with 21st Century Technologies and Total Quality Control. Capital Improvements = Comp’ Advantage.• Follow The Money and Math Rules so that you are always doing profitable projects. Have a Discipline for wisely investing in your property.• Be Proactive – Find experts who work Nationally and Globally so that you have access to the world’s best People and Technologies.
  • 30. Summary … continued• Buy your HW and SW simultaneously so that they are compatible and interface properly.• Only buy SaaS – Software as a Service.• Reduce before you Produce :Before adding expensive, energy-producing Solar and Wind toyour property, reduce energy consumption by focusing on thebig three energy-users – Lighting, HVAC, and sealing the BuildingEnvelope. These three areas offer the greatest savings and thebiggest Tax Incentives. The cheapest KW is the one that younever use through energy reduction, not the one that you produce.
  • 31. Energy, Water, and Taxes, LLC FRASER ALLPORT - CEO ENERGY, WATER, and TAXES, LLC Reducing Energy, Water and Tax Bills for Properties Office 954-251-3334 Cell 305-351-6922 Skype 954-889-7608 / 10 am to 10 pm, EST - Monday through Saturday We are headquartered in Miami, FL. , USA and work Globally. We work on a Success Fee - We only get paid for Savings. Call us for your Free Energy and Water Savings Analysis.Fraser Allport’s Biography is available at and