energy efficiency

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.