energy efficiency

EMERALD SKYLINE PARTNERS WITH BLUE PILLAR TO PROVIDE THE ENERGY NETWORK OF THINGS POWERED BY AURORA

South Florida-based Emerald Skyline brings 21st Century technology to energy management.

“Over 75% of businesses say that Internet of Things (IoT) is critical to their future success, and nearly half of adopters are using IoT to support large-scale business transformation.” Vodafone IoT Barometer 2016

January 10, 2017 from Emerald Skyline Corporation (www.emeraldskyline.com)

BOCA RATON, FL, January 10, 2017 – FOR IMMEDIATE RELEASE

Today, Emerald Skyline announced that it has partnered with Blue Pillar, Inc. to provide the Energy Network of Things powered by Aurora for hospitals, office buildings, retail centers, industrial and municipal facilities. Together, we’re transforming the energy industry by developing intelligent energy management solutions to help facility managers achieve their energy resiliency, efficiency and sustainability goals.

Blue Pillar connects any energy “thing” (i.e., any asset that consumes, switches or measures electricity — including meters (water, gas and electric), generators, fuel tanks, automatic transfer switches, chillers, boilers, HVAC control panels, CHP, solar panels, EV chargers and just about any other intelligent mechanical equipment you can think of — into our Energy Network of Things platform.
Blue Pillar’s Aurora Energy Network of Things™ platform has an architecture that is open at the device and application layer, so it is perfectly positioned to solve the energy management data crisis. In addition to being open and providing ubiquitous connectivity, we also offer dozens of energy management applications the same way that a calculator or calendar app would be offered on your Apple or Android phone.

“As a sustainability and resiliency consulting and LEED project management firm, this partnership enables us to provide the industry’s most flexible platform for connecting and managing energy devices,” reports Abraham Wien, LEED AP O+M, Director of Architecture & Environmental Design for Emerald Skyline. “We are always looking for ways to provide superior products and services to meet our clients sustainability and resiliency needs and Blue Pillar is an IoT provider that we are proud to offer to the market.”

For nearly a decade, Blue Pillar has connected thousands of energy assets at a wide variety of deployment sites from hospitals and energy service providers to data centers and higher education campuses enabling them to work 75% faster and realize 30% more affordability.

To find out more information about the employment of the Blue Pillar IoT for building energy systems in your building or facility and unleash the power of real-time data that strengthens your infrastructure and improves not only your efficiency but provides opportunities for differentiation and even new revenue sources while providing for a greener tomorrow, please contact Abraham Wien at aw@emeraldskyline.com or call us 305.424.8704.

The Importance of an Energy Assessment for Commercial Buildings

By John Losey, Owner and Founder The BP Group, Energy Manager Today, 9/1/2016

View the original article here.

Building owners and property managers that take on the responsibility of limiting energy consumption can be looked at as environmental leaders. While energy management adds extra tasks to everyday lists, the benefits outweigh the time and money spent, which is usually returned in savings.

There are numerous areas to take into consideration when it comes to commercial buildings, and being that commercial buildings are generally large, the impact can be large as well. These areas include the HVAC system, chillers, windows, lighting, electrical equipment, and any other factors that may be contributing to the building’s energy consumption.

While there are various ways to be involved with bettering the environment outside of where you live and work, starting in a place that you occupy everyday has the potential of having long term results if the actions are carried through as often as you’re there.

Consider creating an outlined approach for managing the building’s energy with these areas in mind:

Identify Sustainable Alternatives Where Energy is Being Used:

  • Are there upgraded, energy-efficient versions of the equipment you can be using instead?
  • Could you use different settings on the equipment?

Assess the Purpose of Every Area:

  • Is the lighting being utilized in every room?
  • Is the size of the HVAC system an adequate fit for the building and its purpose?

Evaluate Maintenance Plans:

  • How frequent are the utilities maintained?
  • Do the maintenance technicians practice with energy efficiency in mind?

Look for Possible Areas of Energy Loss:

  • Are the building’s windows sealed properly?
  • Is the equipment too old for efficient functioning?

These are questions you should ask yourself if you’re trying to assess energy consumption and find that alternative route to save not only energy, but money as well.

After addressing these questions, you may find yourself planning to make some changes. Here is the information you should know for doing so:

Energy Efficient Equipment: Whether it’s the HVAC system, the utility lighting or the other various appliances being used in the building, there are energy-efficient options to consider. This includes ones with ENERGY STAR ratings, which match the standards set by the government.

Settings & Thermostats: Just by being knowledgeable about specific settings and the different types of available thermostats, you can be saving a substantial amount of energy. Depending on the type of building and the function(s) of the building, settings can be applied to use less energy in an area that doesn’t need it. The same idea goes for thermostats. Programmable thermostats allow for precise regulation of energy consumption. This means making sure the temperatures aren’t set too high or too low when the building or part of a building isn’t in use. Programmable thermostats keep the location comfortable when needed, but help save energy when it’s not.

Lighting: It’s better to be the building that turns its lights off when it isn’t being used, than a building that keeps them on 24/7. It’s also important to consider energy-saving types, such as LED or solar. With these kinds, you can also invest in timers and dimmers.

HVAC Size: According to ENERGY STAR, “at least 25% of all rooftop HVAC units are oversized, resulting in increased energy costs and equipment wear.” Determining what size HVAC system the building needs is a job for a professional technician, and it’s an important part of the overall building assessment.

Maintenance: Building maintenance is not only important for saving energy and money, it’s important for the building’s health and those occupying it. This includes electrical, HVAC, plumbing, etc. While there are tasks you can manage on your own, there are specific tasks that are recommended for the hands of a professional technician. Whatever the area, it’s important to have maintenance scheduled. Having a definite schedule helps to prevent sudden issues, which prevents sudden energy loss as well.

Technicians: Certain companies know the importance of offering energy-efficient services. This means that they practice in ways that are beneficial for the environment. Research the companies in your area and look for the ways they’re working to save energy and you money. This is an important quality, and more companies are beginning to realize that.

Windows, Replacements & Other Areas of Loss: Other ways to assess energy is by looking into the not so obvious. This includes windows, old systems that don’t show signs of stress until it’s too late, and too many running appliances and pieces of equipment causing heat. If windows aren’t sealed properly, especially in summer and winter, your HVAC system may be working harder than it has to in order to reach the desired temperature. Leaks of hot or cold air will cause this. Another concern are systems that don’t show signs of stress. If the system is old, it’s definitely recommended to have it maintained, even if you think otherwise. The inside has moving parts that may be working very hard to keep it running, and the machine giving out might be the first sign if you wait too long. Lastly, there may be too much heat. Too many heat producing appliances or pieces of equipment may cause the air conditioner to work harder, similar to an open window on a hot summer day.

Commercial buildings don’t function alone, they need the help of energy, and all building owners and property managers can help conserve it.

John Losey is the owner and founder of The BP Group, a leader in Commercial HVAC Services

LEED Project Update

JulieBy Julie Lundin, Founder, LEED AP ID+C, NCIDQ, ASID
Director of Sustainable Interior Design for Emerald Skyline Corporation

Emerald Skyline Corporation in conjunction with Golden Spiral Design, is designing, renovating and repurposing an unoccupied industrial building located in Boca Raton, FL. This building was formerly an auto garage that stood vacant for several years and was environmentally contaminated. Our renovation includes many sustainable features with the intent to obtain LEED certification from the USGBC.

The above paragraph still holds true months later. However, we have had to re-think the project scope and move forward on a smaller scale. We spent months working on the design and drawings in preparation for submission as a development project. In our original design concept we envisioned a larger building footprint and a second floor addition. Vision often becomes qualified by reality, and our project is no exception. The property size cannot accommodate a larger building footprint and the FAR (floor area ratio) requirements limit the building size allowed. An addition of a partial second floor (FAR compliant) was our solution to the lot size and FAR restrictions. Although only a partial second floor was now being considered it would still require stairs and ideally an elevator. Also, the limited first floor square footage available to accommodate the new stairs and an elevator almost negated the second floor addition. Our conclusion was that adding the partial second floor was not adding the square footage desired, and the cost of construction and engineering did not make economic sense.

In January we made the decision to proceed with the project as a renovation of the existing building only. No additional square footage is being added. Our intent is to repair and replace what is there. The building will visually retain the auto garage industrial look but will be transformed into a sustainable, repurposed space.   As a sustainable consulting firm, it makes sense for us to not increase the size of the building. Our society often believes that bigger is better and we briefly fell into this way of thinking. Now we are committed to working within a limited space and we are re-focusing on creative design and the best use of that space.

As stated in our previous post, this project is a proposed LEED certified building. A key component of a LEED project is its reduced energy use. We have replaced the existing flat roof which was old and leaking with a new roof that has a high SRI (Solar Reflectance Index). We are also designing a high efficiency HVAC system and building envelope to optimize the energy performance of the building. All of the existing windows are being replaced with product that exceeds the Florida Code and are High Velocity, Hurricane Zone approved for Miami-Dade as our project is located in South Florida. In addition, to optimize energy performance in a hot climate our windows have a high VT (visible transmittance) and low SHGC (solar heat gain coefficient) to ensure adequate daylight is being admitted while still blocking significant quantities of solar radiant heat gain.

window radiation

LED lighting fixtures designed with specific task usage will be installed on both the interior and exterior of the building. The existing concrete floors of the auto garage are going to be polished and used as they are. The specifications of the interior finishes are just beginning and as an interior designer, this is the fun part. Low VOC products, adequate air ventilation, and controlled air temperature and humidity will be utilized to protect the buildings IAQ (Indoor Air Quality). Low flow toilets and faucets, and Energy Star appliances will all be specified to reduce the amount of water and energy that is consumed.

We hope to be in our new location by early fall. Once our building is completed we will post descriptions of the renovation details and photos. This project has been a long journey. We are proud that it is a shining example of a correct decision to repurpose a building that might have otherwise been overlooked.

New Law to Allow Tenants to Showcase Their Energy Efficiency Efforts

By Robert Carr, National Real Estate Investor, 5/15/2015

{ View the original article here. }

lightbulb
Office tenants who became believers in energy conservation
in the heyday of the building sustainability movement about two decades ago only to watch building owners take all the credit have cheered a recent new law that will support, track and promote their efforts at being green.

President Barack Obama signed the Energy Efficiency Improvement Act of 2015 on April 30. The bipartisan-sponsored law promises to align the interests of building owners and tenants with regard to investments in cost-effective energy efficiency and water conservation measures, create studies that will examine successful sustainable practices, enact data-tracking systems and provide ways to promote voluntary tenant compliance.

The law, also known as the “Tenant Star” act, includes a new federally-sponsored green building designation that’s similar to the U.S. Environmental Protection Agency’s (EPA) popular Energy Star system. Energy Star, enacted in 1992, provides an energy-efficient rating system for building products, residential homes and commercial buildings. In a recent report, the EPA said the Energy Star system reduced utility bills for residents and businesses by $34 billion in 2014.

However, tenants, the backbone of energy use in commercial buildings, have neither had a consistent national program to measure efficient energy use, nor a way to tout their specific efforts. Allison Porter, vice president of sustainability services for commercial real estate services firm DTZ, says tenants will now have the same kind of opportunities as Energy Star provides for owners to turn data into a basis for action. The new law will allow space occupiers to take responsibility for their usage and receive recognition for conservation efforts, she says.

“Although whole-building measures like Energy Star are a valuable tool, it’s also crucial to acknowledge that tenants’ use of a space has a huge impact on how a building performs,” Porter says. “By encouraging tenants to design and build energy-efficient spaces, Tenant Star will help align the interests of tenant and landlord. I expect that this alignment will clear a path for a new wave of investment in energy-efficient office space, especially coming at a time when the cost of efficient technologies commonly used in office interiors, such as LED lighting and occupancy sensors, has decreased significantly.”

Porter is joined by many other tenant sustainability supporters in her praise of the new law. Anthony Malkin, chairman, president and CEO of New York City-based Empire State Realty Trust Inc., said in a statement that the new law will align office tenants with their landlords to make smart, cost-effective investments in energy-efficient leased spaces. “Broad adoption will save businesses billions of dollars on energy costs in the coming years,” he said.

Jeffrey DeBoer, president and CEO of the Washington, D.C.-based Real Estate Roundtable, which brings together commercial property owners, developers and managers to address national policy issues, called the legislation “a triple win that will spur the economy by creating jobs, enhancing energy security and preserving our environment by cutting greenhouse gases.”

Implementation

The General Services Administration (GSA), responsible for all federal government leasing in the country, will take responsibility for the first section of the law, also known as the Better Buildings Act of 2015. According to the act, the GSA will create model commercial leasing provisions for energy efficiency by Oct. 31, and may begin enacting these provisions in federal leases. The GSA will also publish these provisions and share them with state, county and municipal governments.

The Secretary of Energy is responsible, under this law, to create a study within one year on the feasibility of significantly improving energy efficiency in commercial buildings through design and construction, by owners and tenants, of spaces that will use energy efficient measures. The study will include, among other requirements, such metrics as return on investment and payback analyses, comparisons of spaces that use these measures and those that don’t, impact on employment and actual case studies and data on the spaces where these measures are implemented. The department will start seeking input on this study after Aug. 1.

In addition, to allow tenants to start touting their green policies, the EPA will create the Tenant Star designation as an offshoot of Energy Star. Not only will tenant data be added into the 23-year-old collection program already in place, the new designation will recognize tenants in commercial buildings who voluntarily achieve high levels of energy efficiency in their leased spaces. The EPA will also create a voluntary program to recognize owners and tenants that use energy efficiency in designing and creating new and retrofit space.

Al Skodowski, director of sustainability with commercial real estate services firm Transwestern, says this new law will help those companies that have been fully engaged in driving green practices for many years.

“The birth of Tenant Star, as another tool to help our tenants understand their use, reduce energy consumption and to save money, is a very exciting opportunity that will help us continue to improve efficiency in the industry,” he says.

Welcome to Sustainable Benefits – Let’s begin with the benefits of doing a commercial building sustainable retrofit….

2/12/15

PJ Picture
By Paul L. Jones
, Founder,
Director, Financial Advisory Services for Emerald Skyline Corporation

 

“Who is more foolish: The child afraid of the dark or the man afraid of the light?” (Maurice Freehill, British WW I flying ace).

Figure 1 Empire State Building - LEED Gold

Figure 1 Empire State Building – LEED Gold

Throughout my 36-year career in commercial real estate, commercial buildings have generally been classified from A to C based on location, construction quality and tenancy. Class A buildings represent the cream of the crop. They secure credit-quality tenants, command the highest rents, enjoy premium occupancies, are professionally managed and have a risk profile that supports lower cap rates and higher values. Class B buildings are similar to Class A but are dated yet not functionally obsolete. Class C buildings are generally over 20 years old, are architecturally unattractive, in secondary or tertiary locations and have some functional obsolescence with out-dated building systems and technology. NOTE: No formal international standard exists for classifying a building, but one of the most important things to consider about building classifications is that buildings should be viewed in context and relative to other buildings within the sub-market; a Class A building in one market may not be a Class A building in another.

Based on years analyzing investments in income properties, it appears to me that in the recovery from the Great Recession the commercial real estate market has evolved to include energy efficiency and environmental design as a requirement for improving the marketability of a building – not to mention optimizing its operating income and value.

COMMERCIAL OFFICE BUILDINGS

On December 1, 2014, Buildings.com, in an article entitled “GSA Verifies Impact of Green Facilities,” reported that a study conducted by GSA and the Pacific Northwest Laboratory conducted a post-occupancy study of Federal office buildings, which varied in age and size and had been retrofit to reduce energy and water consumption. The following results were based on a review of one year of operating data and surveys of the occupants which was compared to the national average of commercial buildings: High performance, green buildings:

  • cost 19% less to maintain
  • Use 25% less energy and water
  • Emit 36% fewer carbon dioxide emissions
  • Have a 27% higher rate of occupant satisfaction.

One of the most famous sustainable retrofit projects undertaken was the updating of the 2.85 msf Empire State Building whose ownership directed that sustainability be at the core of the building operations and upgrades implemented as part of the $550 million Empire State ReBuilding program. According to Craig Bloomfield, of Jones Lang LaSalle (JLL), “After the energy efficiency retrofit was underway, JLL led a separate study of the feasibility study of LEED certification” which “showed that LEED Gold certification was within reach at an incremental cost of about $0.25 psf.

Graphics on financial benefits of high-performance buildings

Source: Institute for Market Transformation: Studies consistently show that ENERGY STAR and LEED-certified commercial buildings achieve higher rental rates, sales prices and occupancy rates.

Source: Institute for Market Transformation: Studies consistently show that ENERGY STAR and LEED-certified commercial buildings achieve higher rental rates, sales prices and occupancy rates.

According to the report “Green Building and Property Value” published by the Institute for Market Transformation and the Appraisal Institute, a trend is emerging where green buildings are both capturing higher quality tenants and commanding rent premiums. As indicated by the above graph summarizing four national studies for commercial office buildings back up this trend on rents and occupancy, as “certified green buildings outperform their conventional peers by a wide margin.”

  • According to the EnergyStar.gov website, “Transwestern Commercial Services, a national full-service real estate firm, has generated impressive returns through sound energy management. In 2006, Transwestern invested over $12 million in efficiency upgrades, for an average 25% energy savings. The Company estimates that dedication to energy management has increased the portfolio’s value by at least $344 million.”
  • According to John Bonnell and Jackie Hines of JLL – Phoenix, “In Phoenix, owners of LEED-certified buildings can capture a premium of 29 percent over buildings without this distinction.” The premium for Green buildings had disappeared during the Great Recession and reemergence in the first quarter of 2014 as a result of improving Phoenix market dynamics which is being realized in other major markets as well.

RETAIL

For retail buildings, the tenants are driving the shift to sustainability with green building as consumers become increasingly aware of the environment and the need to reduce, reuse and recycle. According to the “LEED in Motion: Retail” report published by the USGBC in October 2014, “LEED-certified retail locations prioritize human health: among their many health benefits, they have better indoor environmental quality, meaning customers and staff breathe easier and are more comfortable. In a business where customer experience is everything, this is particularly valuable.’ Green retail buildings also out-perform conventional buildings and generate financial savings:

  • On average, Starbucks, which just opened their 500th LEED-certified store, has realized an average savings of 30% in energy usage and 60% less water consumption.
  • McGraw-Hill Construction, which surveyed retail owners, found that green retail buildings realized an average 8% annual savings in operating expenses and a 7% increase in asset value.

It is noteworthy that, according to the third annual Solar Means Business report published by the Solar Energy Industries Association, the top corporate solar user in the United States is Walmart. In fact, almost half of the top-25 solar users are retailers (the others are Kohl’s, Costco, IKEA (9 out of 10 stores are solar powered), Macy’s, Target, Staples, Bed Bath & Beyond, Walgreens, Safeway, Toys ‘R’ Us, and White Rose Foods). Other Top-25 solar users with a significant retail footprint include Apple, L’Oreal, Verizon and AT&T.

In the competitive retail market, the study also noted that being distinguished for pro-active and responsible corporate social responsibility attracts customers and investors.

MULTI-FAMILY BUILDINGS

In a study of 236 apartment complexes conducted by Bright Power and The Stewards of Affordable Housing released last July, 236 properties in two programs, HUD’s nationwide Green Retrofit Program and the Energy Savers program available from Illinois’ Elevate Energy and the Community Investment Corp. One year of pre- and post-retrofit utility bills were analyzed. The researchers found the following:

  • Properties in the Green Retrofit Program had realized a 26% reduction in water consumption – or $95/unit annually.
  • The energy consumption in the Green Retrofit Program was reduced by 18% representing an annual savings of $213/unit.
  • Surveyed buildings in the Energy Savers program had reduced gas consumption by 26% and had reduced excess waste by an average of 47%.
  • The water saving measures in the Green Retrofit program reflected a simple payback period of one year while the energy savings measures had a simple payback period of 15 years.

In an article be Chrissa Pagitsas, Director – Multi-family Green Initiative for Fannie Mae, reports that 17 multifamily properties have achieved Energy Star® certification with two of them, Jeffrey Parkway Apartments in Chicago and ECO Modern Flats in Fayetteville, Arkansas, receiving financing from Fannie Mae.

  • The Eco Modern Flats complex is over 40 years old. With the goal of reducing operating expenses, the project was retrofit in 2010 with energy and water efficiency improvements including low-flow showerheads and faucets, dual flush toilets, ENERGY STAR® certified appliances, efficient lighting, closed-cell insulation, white roofing, solar hot water and low-e windows. As a result of the retrofit, the property achieved a 45% reduction in water consumption, a 23% drop in annual electricity use including a 50% savings in summer electricity consumption while increasing the in-unit amenities, obtaining LEED Platinum certification and increasing occupancy by 30% resulting in a significant increase to Net Operating Income.

Multi-family properties made sustainable gain a competitive advantage in marketing to young professionals and other target audiences who prefer to live in an environment that is healthy and energy-efficient which saves money on utilities.

HOTELS

In a 2014 study conducted by Cornel University, researchers compared the earnings of 93 LEED-certified hotels in the US to 514 non-certified competitors. The study included a mix of franchised, chain and independent facilities in urban and suburban markets with three-quarters of the properties having between 75 and 299 rooms.

The results show that green or sustainable hotels had increased both their Average Daily Rate (ADR) and revenue per available room (RevPAR) with LEED properties reporting an ADR that was $20.00 higher than the non-certified properties (prior to certification, they reported an ADR premium of $169 vs. $160).

The researchers noted that these premiums were realized in price-competitive markets and that the amount of the premium was unexpected. From the results, they concluded that Eco-minded travelers were willing to pay a modest premium to stay at a verified green facility.

Further, the savings realized in electricity and water usage as well as reductions in waste disposal fees and costs as well as reduced maintenance costs go straight to the bottom line resulting in increased Net Operating Income. Here are some examples:

  • The Hampton Inn & Suites, a 94-room facility in Bakersfield, had REC Solar install carport-mounted solar panels which is offsetting 44% of the electricity costs, or up to $8,800/month – adding over $100,000 to the property’s bottom-line.
  • The 80-room Chatwall Hotel in New York completed an LED lighting retrofit project mid-year 2014 which will result in a first year savings of almost $125,000. The cost: just about $1.00 per LED light after rebates.

According to Flex Your Power and ENERGY STAR® statistics, the hospitality industry spends approximately $4 billion on energy annually with electricity, including the HVAC system, accounting for 60% to 70% of utility costs. In fact, excluding labor, energy is typically the largest expense that hoteliers encounter and the fastest growing operating expense in the industry (www.cpr-energy.com). The EPA has concluded that even a 10% improvement in energy efficiency is comparable to realizing a $0.62 and $1.35 increase in ADR for limited service and full service hotels, respectively.

Many studies show that hotels do not realize the full benefit of many energy efficiency measures as guests feel no obligation to employ sustainable practices and wastes the opportunity for savings afforded by the hotel’s energy efficiency measures; however, almost half realize savings in excess of 20% reflecting that many operators have found ways to enlist guest cooperation in saving electricity and water.

According to the US Energy Information Administration (EIA) 2012 Commercial Buildings Survey, the United States had approx. 87.4 billion square feet of floorspace in 5.6 million buildings that were larger than 1,000 sf which also excluded heavy industrial manufacturing facilities. Ninety percent of the buildings that will exist in2035 have already been built – and buildings consume 80% of energy used in cities worldwide and represents almost 20% of all energy consumption in the United States.

Source: US Department of Energy 2013 Renewable Energy Data Book, 1/22/2015

Source: US Department of Energy 2013 Renewable Energy Data Book, 1/22/2015

 

The evidence is clear – building and operating sustainably pays dividends – in improved NOI from cost savings and increased revenues. Attracting higher quality tenants, improving market perception and reducing risk indicates that going Green is becoming a key for maintaining the Class of a building – keys to improving long-term values through lower cap rates.

So, why aren’t more building owners and managers going green? We will seek to discern this matter in our next Sustainable Benefits.

Perhaps the Scientists are sounding too much like Chicken Little

11/5/14

PJ Picture
By Paul L. Jones
, Founder,
Director, Financial Advisory Services for Emerald Skyline Corporation

 
This week, the United Nations’ Intergovernmental Panel on Climate Change issued its latest report on the effects of climate change on the world if corrective action is not taken. The headline in the Miami Herald read “Scientists’ warning is most alarming yet.”

A review of articles on climate change reflects similar headlines and worse – like “Goodbye Miami” or “Florida developers facing environmental woes.”

The alarm bell is ringing – and the headlines are starting to sound like Chicken Little crying “The sky is falling, the sky is falling!” in the children’s books. I know it does to me – and I know that the scientists have done their homework which is the opposite of Chicken Little and all his furry friends – Hen Pen, Duck Luck, Goose Loose and Turkey Lurkey.

In fact, a group of industry experts and sustainability professionals met in London last summer to dialogue about a report being issued by DNV GL, a leading ship and offshore classification, a leading technical advisor to the global oil and gas energy and a leading expert for the energy value chain including renewables and energy efficiency. The report, entitled, A Safe and Sustainable Future: Enabling the Transition, provides an analysis of challenges to sustainability in the global economy, societal well-being and governmental and corporate governance.

In an article published in Maritime Executive (http://www.maritime-executive.com/article/Too-Much-Climate-Change-Doom-and-Gloom-2014-07-12), entitled “To Much Climate Change Doom and Gloom,” participants expressed concern that the messaging around climate change is too much “doom and gloom” and not enough on the opportunities that are arising from addressing the effects of a warming world. Bjorn Haugland, executive vice president and chief sustainability officer at DNV GL was quoted:

“We believe there is a need to put the focus on the opportunities. For corporate leaders and politicians to speak a positive narrative is so important as it directs so much activity in society.

“We believe it is possible to create a thriving economy, it is possible to stay within the limits of the planet and it is possible to create a society for nine billion people to live well if we want to. It is human activity that has taken us into this situation and it is human activity that will take us out of it.”

Much of our perspective on the world, including our economic systems, is based on the belief that the world has an infinite supply of natural capital and a warming planet; however, the headlines about water shortages, famines, super storms, flooding, the hottest year on record, rising sea levels, ice caps melting and other calamities highlight that the scientists are not Chicken Little – the evidence is all around us.

Whether or not the global warming is man-made or from natural causes does not really matter, it is affecting the future for man-kind. Further, resource limitations can be extended – like the Green Revolution in agriculture where research, development and new technology between the 1940s and the 1980s increased agricultural production around the world – saving hundreds of millions of people from starvation.

Challenges abound everywhere, but where there are challenges, opportunity also exists.

DNV GL’s research report highlights 36 “barriers to sustainability” which range from economic and market hurdles to policy, societal and behavioral attitudes and habits – including reactive and short-term thinking, “denialism” and a lack of urgency. (available here: http://dnvgl.com/Images/DNV%20GL%20SSF_20_aug2014_tcm212-595432.pdf)

The Report concludes with Pathways to a Sustainable Future, which is summarized as follows:

“Our vision for a safe and sustainable future is within reach. Humanity has faced, and overcome, grand challenges in the past. Undoubtedly, we can surmount our present challenges too – if we choose to. Changing course will depend on our ability to work together, to act quickly and to harvest opportunities both today and tomorrow.

“We can develop an economy that is sustainable and regenerative, we can rejuvenate our ecosystems, and we can build the stable, equitable and thriving societies that we desire for the future. We are at a moment in time where there is a unique opportunity to shape the future we want.”

The scientists are not Chicken Little. It is time to stop ignoring the headlines which are designed to instill a sense of urgency and realize that the time is now for each of us to act.

It is real estate owners and investors who have the most to lose as the effects of climate change will most definitely be seen in utility bills, property taxes and insurance premiums.   With the new building management technologies, energy efficiency, water conservation capabilities and waste management programs, building owners and managers have the ability to reduce operating costs while making the building sustainable. We know. We see it being done – in both new and existing buildings.

As Glenn Pickett reports in his article on “the Drumbeat for Climate Action Grows,” published in Environmental Leader on 11/3/2014,

“The appetite is all but gone for hearing more about our frightening global forecast and who’s at fault for it. The more time the environmental and sustainability movement spends sharing solutions, the more mainstream these choices will have the chance of becoming….. It’s time for action, and leaders will be rewarded.”

Read more: http://www.environmentalleader.com/2014/11/03/the-drumbeat-for-climate-action-grows/#ixzz3I7KNzYO0

May we all become good stewards of this earth.

On Questioning Assumptions/Making an Immediate Impact

PJ Picture
By Paul L. Jones
, Founder,
Director, Financial Advisory Services for Emerald Skyline Corporation

The nature of our education system is for us to believe that once we learn a topic or draw a conclusion on an issue, we move on to the next subject and never look in the rear view mirror except to use that knowledge to advance in the next course, subject or project. It is easy to fall into this routine, but life and reality do not fit neatly into this sequential thinking process.

For too many people, we have drawn a conclusion on a topic at one point in our lives and never revisit it with an open mind and the benefit of more time and knowledge and wisdom which leads to false beliefs and poor decisions but, the British philosopher and Nobel Laureate, Bertrand Russell, advises us: “In all affairs, it’s a healthy thing now and then to hand a question mark on the things you have long taken for granted.”

Of course, we know this is the case with making the existing building stock sustainable. A common pre-conception is that it costs a lot of money to reduce a property’s impact on the environment and improve the operating performance of a commercial building. Yes, replacing inefficient lighting and HVAC systems, adding solar panels, installing a green roof and changing the windows and/or skin of a building are definitely investments that will save money, but there are many ways to achieve savings without a major investment. YOU CAN MAKE AN IMMEDIATE IMPACT NOW.

Jennifer McConkey, Operations & Sustainability Director at Principal Global Investors, reports in a recently published White Paper: “It seems clear that running efficient building operations, sometimes with no-cost and low-cost improvements, can be the quickest way to implement sustainability into your properties or property investments. Operations can provide the foundation for ‘green’ no matter how old the building.”

An article in the 6/10/2014 issue of EDC (Environmental Design & Construction) Magazine reports, “Implementing green building practices will help reduce environmental problems caused by building construction, use and demolition, as well as the manufacturing of building materials. It also has tangible economic and public health benefits such as lower operating costs and improved occupant health and comfort.”

So, we know that commercial properties consume approximately 20% of the total energy used by the United States. We also know that commercial buildings consume a large portion of water, produce greenhouse gas emissions and generate significant waste. Further, we know that building owners and managers will seek to reduce energy and water consumption as well as greenhouse gas emissions and waste that is taken to a landfill (or the ocean). But, we also know, owners and managers are budget conscious and want to time replacements with the deterioration or functional obsolescence of their systems and equipment. So, what can an owner, manager or tenant do?

Plenty. For ways to start your road toward sustainability and improved operating performance, Jennifer McConkey of Principal Global and BAMCO courtesy of EDC gives us the following free or low cost ideas:

  • Adjust the thermostat to be one degree higher during the cooling season and one degree lower during the heating season;
  • Leaving the lighting in vacant spaces off except during use or installing occupancy sensors which “ensures that even occupied spaces are lit when there is a person the room, further reducing energy consumption;”
  • Establish a pro-active HVAC systems and building envelope maintenance programs. Ms. McConkey reports that “something as simple as replacing worn door seals can cost around $100 per doo, but lead to thousands of dollars in annual savings;”
  • As lightbulbs are replaced, use LED bulbs to help reduce energy consumption;
  • Install VFD (Variable Frequency Drive) on pumps and water features which minimizes energy use during low demand times;
  • Use native or drought-tolerant plants and landscaping;
  • Implement a recycling program (be sure to check local recycling and waste reduction guidelines for materials that are eligible to recycle); and
  • Use sustainable cleaning products and building materials for any tenant improvements or repairs.

Ms. McConkey’s White Paper can be found at the following link: www.principalglobal.com/us/download.aspx?id=96043

The EDC post can be found at the following link: http://www.edcmag.com/blogs/14-edc-blog/post/95677-building-green-5-ways-to-reduce-your-impact-on-the-environment

Remember, reduce, reuse and recycle.

Seek to make a difference! Be well and be blessed, Paul

Energy Efficiency Saves Billions

May 5, 2014 By John Finnigan

John Finnigan, Senior Regulatory Attorney, EDF

View the original post here

Energy efficiency is a proven value. In Ohio alone, energy efficiency programs have saved people a total of $1 billion since 2009. What’s more is that these savings far outweigh the costs to implement Ohio’s energy efficiency programs, which amount to less than half of the total savings. Yet Ohio utilities and large industrial companies want to kill it. Why? Because they lose when customers use energy efficiency programs.

One would think that the billions in customer energy savings would easily trump the utilities’ and large industrial companies’ efforts to kill energy efficiency. But we live in challenging times. The utilities and large industrial companies are spending big money on this issue, and they might win the day unless we can convince our elected leaders to save energy efficiency.

Since 2009, Ohio law has required utilities to meet energy efficiency goals by offering  energy savings programs, which have proven to be wildly successful.  A recent study from Ohio Advanced Energy reviewed all Ohio utility energy efficiency programs since they began in 2009. The study found that these programs have saved customers $1 billion to date and will save a total of $4.1 billion through existing programs. Much greater savings will be available if utilities continue to introduce new programs.

These energy savings are happening not just in Ohio, but all over the country. A March 2014 study by the Lawrence Berkeley National Laboratory reviewed 1,700 energy efficiency programs in 31 states over a three-year period (including 170 Ohio programs). The researchers found that the average cost for procuring the energy efficiency savings was 2.1¢ per kilowatt-hour – five times less expensive than the 10.13¢ per kilowatt-hour customers pay for electricity. The programs cost $5.2 billion and will save 353,585 gigawatt hours of electricity, valued at over $25 billion, as illustrated below:

Source: Lawrence Berkeley National Laboratory, The Program Administrator Cost of Saved Energy for Utility Customer-Funded Energy Efficiency Programs, page 20 (March 2014).

Utilities and large industrial companies have a strong motive to kill these programs, just as horse and buggy makers might have wished to kill the automobile. Utilities make money by selling more electricity, so when customers use energy efficiency programs to lower their electricity bills, the utilities lose revenue. Large industrial companies can afford to hire full-time engineers to design custom-tailored energy savings programs, so they don’t want to pay for the utility programs. These large companies have a powerful competitive advantage over smaller companies, who can’t afford this and rely on utility energy efficiency programs to save money.

The utilities and large industrial companies are throwing big money at this issue and working in several states across the US with well-funded corporate interests, such as the Koch Brothers, the Heritage Foundation, and the American Legislative Exchange Council to overthrow these energy efficiency programs. They won in one state, when Indiana repealed its energy efficiency goals in March, and a similar bill, SB 310, which would freeze any additional energy efficiency mandates after 2014, is being debated in the Ohio state legislature right now.

The irony is that when Ohio utilities file their annual energy efficiency reports with the Ohio Public Utilities Commission, they wax eloquently about energy efficiency’s benefits. AEP said its 2015-2019 energy efficiency plan will save customers “approximately $1.5 billion and create over 4,000 new jobs.” DP&L said that “[f]rom 2009 through 2012, DP&L’s residential and business programs helped customers save 659,605 megawatt hours of energy, or enough energy to power 54,967 homes for a year.” And FirstEnergy reported that its customers save two dollars for every one dollar the company spends on energy efficiency programs.

If the utilities were acting in their customers’ interests, they would issue public statements of support for the current energy efficiency goals. But the utilities are simply acting in their own self-interest and so they are working behind the scenes to kill energy efficiency.

Hopefully common sense will prevail in Ohio and energy efficiency will remain intact.

This article was republished with permission from EDF.

John Finnigan is a senior regulatory attorney with the EDF.