The document discusses the importance of intelligent buildings that integrate advanced technology with sustainable practices to optimize energy efficiency and reduce lifecycle costs. It covers various systems such as building automation, demand response, and the convergence with smart grid technologies, emphasizing the advantages for both operational efficiency and occupant experience. The document also highlights funding opportunities and technological advancements that can enhance building performance while balancing costs and environmental impacts.

1. 10/20/10 Intelligent Buildings meet the Smart Grid High Performance – Net Zero – Sustainable? 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 Sustainable Buildings Canada Building Automation Seminar October 20, 2010, Toronto

2. 10/20/10 BAS: what it is, how it functions, what it governs in a building Green and Smart- how BAS manages demand and energy Latest issues and approaches to Building Automation Systems Continental Automated Building Association and their work on the convergence of Green and Intelligent buildings Smart Grid primer- what it is, how it works Building2Grid - Distributed Energy & Demand Response The Building Intelligence Quotient on line program Funding for the Energy and Demand Response options Challenges and potential for carbon offsets from energy efficiency much more difficult than metered renewables. AGENDA

3. 10/20/10 Intelligent Buildings Why do we build dumb buildings?

4. 10/20/10 Intelligent Buildings Because they are cheaper up front but not in the long run!

5. 10/20/10 Buildings 39% Industry 33% Transportation 28% Buildings use 71% of electricity 21% 18% Why Buildings: Huge Opportunities Residential Heating 32% Other 4% Water Heat 13% Computers 1% Cooling 10% Refrigeration 9% Lights 12% Electronics 5% Wash 5% Cooking 5% Source: 2004 Buildings Energy Databook with SEDS distributed to all end-uses Commercial Other 10% Lights 28% Heating 16% Cooling 13% Water Heat 7% Ventilation 7% Cooking 2% Computers 3% Office Equip 7% Refrigeration 4%

6. 10/20/10 Pneumatic Transmission Electric Controls Electronic Controls Mini Computers Personal Computers Direct Digital Controls BACnet/Lon Revolution Internet/Intranet Growing Convergence of BAS and IT Wireless Interfaces and Email Alarms IT Standardizing Information Presentation Models Evolution of Systems that may Integrate all Building Services on Standard IT Infrastructure Copyright Frost & Sullivan Technological Evolution of BUILDING AUTOMATION SYSTEMS Smart Grid BIM Cloud Server

7. What “Information” is in a Building ? Building automation systems Energy management Security Digital signage Facility mgmt. and visitor mgmt. POS Consumables Parking Tenant technology Property mgmt. and back office … more 10/20/10 Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved. Intelligent Buildings Confidential Copyright ® 2006 The Fourth Utility, LLC

8. Better Tenant and Common Area Experience 10/20/10 High Speed Internet / Wireless Voice Communications Facilities Management Interactive media Visitor management Audio – Video Conf Ambient Music / TV Digital signage Services and Technologies Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.

9. Reducing Building Cost 10/20/10 HVAC Access Services and Technologies Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved. 24/7 Monitor Video surveillance Elevator Lighting Fire Energy

10. Smarter Building / Property 10/20/10 High Speed Internet / Wireless IP Telephony Future Applications Interactive media Visitor management Audio – Video Conf Ambient Music / TV Digital signage HVAC Access Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved. 24/7 Monitor Video surveillance Elevator Lighting Fire Energy

11. How do Intelligent and GREEN buildings compliment each other? 10/20/10 Integrated Design and Life Cycle Cost principles apply Energy Modeling – LEED and Green Globes HVAC Equipment and Building Automation Impacts Energy Price Inflation and Demand Response Programs Net Zero Buildings and Renewables in a Smart Grid

12. 10/20/10 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

13. 10/20/10 CABA Vision “ The knowledge-based forum for industry leaders who advance the use of technology and integrated systems in the global home and building industry.”

14. 10/20/10 INTELLIGENT BUILDING REPORTS www.caba.org/trm FREE www.caba.org/brightgreen

15. 10/20/10 Technology Usage/Purchase Plans Smart Telephony Telepresence Active RFID Smart Landscaping Intelligent Bathrooms Audio/Video Support Combined Heat and Power/ Alternative Energy Automated Parking Green Buildings and LEED Certification Digital Signage 30% 15% 9% 9% 9% 39% 39% 12% 48% 21% 64% 64% 64% 55% 52% 48% 45% 45% 42% 39% Technology Currently Use Might Purchase

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19. Electricity and Peak Demand Charges –Time of Use Rates 10/20/10 12¢ ? 8¢ ? ???? ¢ 4.7¢ / 5.5 ¢

20. (Source: Energy Cost Savings Council) Conventional Cost Analysis Average Payback Period (PP) and Return on Investment (ROI) on single technology products.

21. Reduce HVAC Requirements (Capital Costs) 10/20/10

22. Reduced Lighting Requirements (Capital & Operating Costs) 10/20/10

23. 10/20/10 Is this Tinted Glass Building Green and Intelligent ? What are the tradeoffs in HVAC, Daylighting & Productivity

24. 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 10/20/10

25. 10/20/10 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 Smart Grid and Demand Response Ready

26. 10/20/10 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 Who is working on bringing these issues all together to evaluate alternatives and make sound economic choices?

27. Produced by: Thomas J. Lohner, P.E. Vice President, TENG Solutions Analyzing the Life Cycle Cost of Integrated Building Systems 10/20/10

28. Systems Integration - Comparative Life Cycle Cost You Can Not Afford Not to do it Right 10/20/10

29. Facility Integration Life Cycle Costs First Cost Changes, Additions & Upgrades Operating & Maintenance Utility Costs 10/20/10

30. UPS Computer Room A/C Emergency Generator Fire Management System Door Access Control & Intrusion Detection Lighting Control System HVAC Control System Typical Building Approach to Automation Main Service Switchgear 5 User Interface Workstations! No Integration !

31. Non-Integrated Building Engineering Left up to Contractors Sole Sourcing Required to Provide Integration - $$$$ Stand Alone Systems - Single Purpose Nobody Responsible for Technology Integration 10/20/10

32. UPS Computer Room A/C Fire Management System Emergency Generator Main Service Switchgear SNMP over IP Web Server Web Server Web Server Web Server Modbus Web Server Facility IP Network Client FMS Workstation Database Server Partial Integration Concept HVAC Control System Lighting Control System Door Access Control & Intrusion Detection Security Console Proprietary Control Sub-systems

33. 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 10/20/10

34. 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. 10/20/10

35. 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 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

36. Full Integration Issues Open Standards Applied Where Possible I/O Servers Minimized Number of Devices Reduced - Shared Information 10/20/10

37. BENEFITS Full Integration Same as Partial Integration Approach PLUS Competitive Bids in each Building Integrated Building Sub-systems Lighting, HVAC, Power Management and Security 10/20/10 Lowest Life Cycle Cost Approach

38. Blinds & 24v Wiring Non-Integrated HVAC, Lighting & Intrusion Detection Echelon World Headquarters VAV Boxes No Occupancy Control Dimmable Lighting Control

39. Sensor and 120v Wiring Lighting, HVAC & Occupancy Sensor Control Trunk User Scene Control Switch Integrated HVAC, Lighting, Intrusion Detection & Blind Control Echelon World Headquarters

40. 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 10/20/10

41. System Integration Life Cycle Cost Summary

42. 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 10/20/10

43. 10/20/10 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 Demand Response and Smart Grid options What are the opportunities to get funding for upgrades and retrofit alternatives that provide lower life cycle costs?

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48. Demand Response Marketplace and DR programs in Ontario Demand-Response-Shop.com Collaboration Project with Sheridan College-Building Intelligence Quotient- RFQ Strategies partially funded by Ontario Centres of Excellence David Katz BiQ Program Manager Principal - Sustainable Environmental Solutions Connectivity Week - May 24, 2010 Information on Ontario Power Authority Programs are generalizations and subject to change 10/20/10

49. Ontario Power Authority Integrated Power System Plan Conservation - LEED – Green Globe –BOMA BESt Conservation Measures - Technology Distributed Generation Opportunities Standard Offers – Renewable – Clean Energy Demand Response Programs DR Technologies – Building Sector Demand Response Shop website Smart Grid –Building2Grid optimization Questions 10/20/10 Demand Response and BAS Improvements

50. Previous technologies now economic New technologies save and measure it Building Automation more Intelligent Occupancy, Demand HVAC, Daylighting LEED and Green Globe Credits Life cycle costs and low cost of funds Peak and Energy reduction targets now mandated to each of 80+ Ontario LDC’s 10/20/10 Old and New Technologies

51. Lighting – Dimming – Occupancy -Daylighting Raise Cooling Temperature – Casual Day Clothes Chiller Optimization – Hartman LOOP Chillers - Gas Driven – Absorption Thermal Storage – ICE - Water VSD – Pumps – Fans - Reprogram On site Generation – Economics? Windows - Shades -Tinting 10/20/10 Demand Response Technologies

52. Contractual Load Shedding with DR aggregator Schedule Term (1, 3, or 5 yrs) Contracted Dispatch Period Election of Option A (100 hrs) or Option B (200 hrs) Not Fully Available for Curtailment Election: (1) using the four hour period prior to Curtailment or (2) the four hour period prior to receiving an Activation Notice Different rates for Standard, Premium, Discount areas Some areas of province are X no participation allowed due to system conditions and contracts with others. 10/20/10 Demand Response #3

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54. List of Participating Aggregators Some withdrew 10/20/10

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56. (BUILDING INTELLIGENCE QUOTIENT CONSORTIUM) IN COLLABORATION WITH LAUNCH DEMAND -RESPONSE -SHOP - CONSORTIUM ( D R S C) AND DEMAND-RESPONSE-SHOP.COM AND .CA Sheridan College Institute of Technology and Advanced Learning

57. Rating and Certification (demonstrates the added value) Upgrade Design and Implementation Guidance (demystifies implementation) + - an online tool

58. 10/20/10 SCREEN Of BiQ For building info after log-in

59. Report for Middleton Hall Building Intelligence Quotient Assessment Chart of BiQ rating for each section generated as part of the report Middleton Hall achieved an overall rating of 78% at the New system/Upgrade Stage Integrated design Education Selection of sub-systems Value factors for automation systems Business considerations Subsystem stand-alone custom features Subsystem stand-alone performance Interaction among subsystems BAS Equipment 0 20 40 60 80 100

60. Secure Procurement System for RFI, RFQ and RFP with on line submissions and processing reverse auction and other capabilities

61. Secure Procurement System for RFI, RFQ and RFP with on line submissions and processing reverse auction and other capabilities

62. GRID has massive investment needs Conservation finally getting recognition Renewable energy needs incentives but offer environmental and health benefits Distributed Clean generation can play a large role and can be profitable Demand Response can be part of solution Peak Shaping – Shedding – Shaving Education on DR and the Building 2 Smart Grid is essential – Demand-Response-Shop.com addressing the need and providing the facilitation for maximizing DR incentives and linking to energy efficiency 10/20/10 Summary

63. 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 10/20/10