All of us – in our homes and our work facilities – feel it. Energy costs are rising faster than inflation, which is growing at a faster rate than ever in the last 40 years. Don’t just “shrug your shoulders”, curse a little bit, and then pay your bill and move on. There are things you can do to bring down your energy costs now. And the beauty of reducing energy usage is that your single action will continue to reduce your energy costs for months and years in the future without having to do anything else. Contrast that to sales. Say you succeed in increasing sales, well, you have to do it again year after year.

Oh yes, oh yes. These measures will cost you money upfront. Yes, I get it. But smart choices will have you make these costs back in time. But still money is hard to find for these projects. This is the first in a series of articles of energy projects for your building and home that represent good energy cost savings and can be relatively affordable.

Windows.  Perhaps your windows are old and maybe leaky. Perhaps they are single pane. This is a problem. Your building is a “shell” to keep the conditioned air (warm or cool) that you’ve spent money to make (boiler combusting natural gas or AC system using electricity you pay for) from escaping. You want the shell to keep that warmth or cooling inside where people are. Windows are the weak point of a building’s shell. They are nice to have and look out of, but not a good insulator at all. Poor windows can lead to a lot of leaking of conditioned air, meaning your boiler or AC unit must work harder to produce replace lost warmth or cooling, using more energy (which you are paying for) and leading to more wear and tear on the expensive equipment.

But there is a problem with replacing windows. Yes, replacing leaky, single-pane windows with double- or triple-pane windows is an answer, but it’s a relatively expensive solution with a long payback period (12-30 years is common). Given that windows often last 30, 40 or even more years, it is a good investment, but understandable that an owner or manager would hesitate given the upfront cost and long payback. But there are less expensive items to do vis-à-vis the windows to improve insulation.

One way is adding a pane to the inside of your window. Such window inserts (often see-through plastic, not breakable glass) add significant insulation to your windows to keep conditioned air in and save you excess fuel combustion or electricity. They can be installed quickly and also improve noise attenuation and security properties, too. One disadvantage of this product is that it can only be used for inoperable windows (do not open or shut). Intelligent Energy Group sells such window inserts to consider.

Another way to enhance insulation without replacing windows is to add a film to the window, which can block IR, UV, and other solar radiation from entering the room. This prevents heat gain in a room, measured by its Solar Heat Gain Coefficient. The lower the SHGC, the better the film is at blocking non-visible radiation that would heat a room in the summer. Film is also often rated by its visible transmittance (VT). The higher the VT, the more visible light is transmitted, which is what you want for a room. The right window film can improve a window’s insulation properties. The government agency, Energy Star, currently does not rate window film, but the National Fenestration Rating Council (NFRC) does. One vendor to consider is Wex Energy, which manufactures a product called WindowSkins. CCES has the experts to help you assess your windows and provide diverse options to improve their insulation and help you save energy costs. CCES can also help you save energy in your building in other areas, too. Contact us today at 914-584-6720 or at karell@CCESworld.com.

In their August 5, 2022 edition, the New York Times reported that the State Financial Officers Association has been putting pressure on Republican state treasurers, who are responsible for managing their state’s finances, to use their power to promote oil and gas interests and to work against federal government climate change actions. (https://www.nytimes.com/2022/08/05/climate/republican-treasurers-climate-change.html?searchResultPosition=1).  According to the article, nearly half of the US’s state treasurers are on board, using their power to slow or reverse climate action, such as punishing companies that want to reduce GHG emissions, fighting financial climate change risk disclosure rules, and lobbying against nominees to federal posts just because of their climate change views. All coordinated by a national movement.

Republican treasurers in some states are attempting to refrain from investing in businesses that have cut ties with fossil fuel companies, adversely affect relationships with rating agencies that include climate risk in its credit ratings of states, and object to an array of proposed federal rules concerning climate change risk, such as proposed SEC rules on mandatory climate disclosures and decisions on whether retirement plans can consider climate change risk in their investment strategy.

These moves raise the stakes on effective policy and show that even climate change, despite the preponderance of evidence of its cause and effect, is becoming a political, partisan issue. While Republicans do not have the votes currently in Congress to block climate change initiatives, it is hoping to affect policies through the financial markets.

In addition, such moves will come at a financial cost to the particular state and state government. Mandatory withdrawing of funds to support a firm will result in weakening a business within the state and give the state and its residents and businesses fewer places to borrow, leading to higher costs in the remaining institutions. This can also lead to concentrations of companies in “climate-friendly” vs. “climate-unfriendly” states, affecting business growth and development, similar to the controversy about abortion being more or less restricted over a state border line.

Climate change is an important issue. The effects are undeniable and exacerbating situations currently to deadly effect, such as the recent floods in eastern Kentucky. One can have an intelligent disagreement on how to address climate change. But to openly try to stymie all actions on climate change over political power is a blow to our democracy. People should be aware of this and voice their opinions and vote.

This represents CCES’s view on this matter. We welcome to hear from you if your views are different. CCES has the experts to help your company or entity address climate change and reduce your GHG emissions in such a way to benefit you financially, as well. Contact us today at karell@CCESworld.com or at 914-584-6720.

In late July, Senators Joe Manchin and Chuck Schumer announced an agreement on a number of issues of contention, called the Inflation Reduction Act of 2022. At this writing, it has passed the Senate and House and awaiting President Biden’s signature.

Here is a summary: https://us.eversheds-sutherland.com/portalresource/inflation_reduction_act_of_2022.pdf.  It includes many diverse provisions, but for this newsletter, I will focus on those related to energy.

There are over 300 pages of energy tax provisions, including:

• Extension and expansion of the Section 45 production and Section 48 investment tax credits for energy development ranging from renewable power to refined coal;
• Extension and expansion of the Section 45Q carbon capture and sequestration (CCS) credit, the critical technology that would allow coal-fired power plants to operate with much lower emissions of greenhouse gases;
• Additional tax credits for zero-emission power production, clean energy production and clean hydrogen production.
• Extension of biodiesel/alternative fuels credits and inclusion of a sustainable aviation fuel credit.
• Direct pay for tax-exempt entities, state or local governments, the Tennessee Valley Authority, Indian tribal government, or any Alaska Native Corporation to otherwise benefit when it cannot take advantage of the tax credits above.

The proposed Act provides significant steps to encourage US transportation to move toward electric or zero-emissions technology, both promoting such vehicle manufacturing and providing for consumers to purchase and use electric vehicles. The Act provides clean vehicle tax credits of up to $7,500 for new vehicles and up to $4,000 for used vehicles (with some income limitations). It also eliminates a manufacturing cap that was discouraging all-electric car companies from producing more such vehicles, in part, causing the shortage of zero-emission vehicles vs. demand that we currently have.

One concern in the electric vehicle industry is the availability and security of the electric vehicle supply chain. The Act contains stringent eligibility limits based on where battery components are made, or the underlying critical minerals are processed or mined. A percentage of the value of the critical minerals must be extracted or processed in nations with which the U.S. has either a free trade agreement or recycled in North America. In 2023, this percentage starts at 40% and rises 10% each year until 2027 at which point the percentage will remain steady at 80%. This was done to reduce dependence on Chinese critical mineral supply and encourage domestic production.

The Act includes investment tax credits for projects that build or expand manufacturing facilities to include electric and hybrid vehicles production, ranging from 6 to 30%, if certain conditions are met. The Act also provides $2 billion in grants to retool existing auto manufacturing facilities to manufacture clean vehicles and expands DOE lending authority. The Act provides up to $3 billion to electrify Postal Service delivery trucks.

Many of these energy tax provisions are identical of the previous of the Build Back Better Act, with additions to prop up the coal industry, if coal combustion can be made cleaner. One should consult with tax professionals to determine the differences and the overall implications of the proposed bill. CCES provides this overview, but not with any legal or accounting basis. To explore how the Act will impact and benefit you, discuss with an experienced legal or accounting professional. CCES has the technical expertise to help you evaluate and analyze your energy usage, diversify your sources of energy, and use cleaner and less energy to save you costs and meet “green” goals. Contact us today at karell@CCESworld.com or 914-584-6720.

For the last 2½ years, it was COVID. Now it’s competitive employment. These are issues of growing concern for companies in this economy. Companies want to be housed in areas that are attractive to employees, to lure them from their homes, and to bring back the essence of teamwork and meetings. And a big part of this is how to attract millennials, who are accounting for a greater share of the workforce. Facility managers will need to incorporate features in an office’s design and operations to attract millennials. For most designers and managers, this will represent a different way of thinking as younger people have grown up with different ways of approaching information and communication and have different expectations about the work environment than the rest of us. If facility managers do not change to please them, their tenants can lose staff which could put them at a disadvantage and encourage them not to renew their lease and go elsewhere, affecting the building owner’s bottom line.

Not that I am an expert, but here are several things you can do to make your older building more attractive to younger workers.

Technology.  Millennials are the most technologically advanced generation ever, growing up using technology at their fingertips. Thus, they want to see more automated features in the buildings in which they spend time. Consider investing in technology to automate office processes to attract and please younger workers, such as temperature and lighting sensors to keep building areas in use comfortable and well-lit, while not wasting energy in unused areas. Of course, this will also save the building owner energy costs. Remember:  Energy efficient equipment is great but using no energy (when it’s not needed) is even more cost effective.

And one more thing: Think Indoor Air Quality.  Millennials seem to have a thing about indoor air quality (IAQ). Perhaps they’ve been around a lot of schools and homes with poor IAQ. So invest in improving your building’s IAQ and have data to show what you’re doing. Invest in UV lighting, bipolar ionization, or HEPA filters on your HVAC equipment as technology to demonstrate a healthier building environment.

Lighting.  Millennials certainly know and want efficient LED lights. But they’re also more attuned to light that imitates their natural, circadian lifestyle. LED lights exist that imitate the natural daily cycle with light in the blue hue range in the mornings changing to a yellow hue later in the day. Doing research on lights (including allowing natural light into office space, when feasible) that imitate rhythms can improve staff health, energy, and productivity, making the tenant happier and more likely to renew.

And one more thing: De-Lamp.  With LED lamps saving so much electricity, there is a temptation to just put in more lights. But too much lighting can cause glare and stress. Attempt to identify not just underlit, but overlit areas, too, and take out some lights.

Sustainability.  Polls show an overwhelming majority of millennials want to work for companies that care about the environment. Unlike previous generations, they know more and want to be see not public relation statements. Sustainable items like a green roof, solar panels, or EV charging stations are features things that can be implemented even into older buildings to show millennials that the building is in tune with current trends. And of course, these items will also save energy costs, such as reduced cooling and maintenance costs with a green roof. Millennials are a major part of the growth in electric car sales. EV charging stations may make them want to come to the office.

And one more thing: Green Cleaning. The rate of asthma has grown and is one of the great medical issues affecting Millennials. Although the cause for asthma is unknown, reducing the use of harsh chemicals in office cleaning will likely make Millennials feel better, both physically and psychologically.

Diverse Things To Do.  Millennials so want the workplace to have a similar feel to their homes. Having a gym onsite and/or a well-landscaped space to take a walk can help attract young people to a building. Having a diverse cafeteria or kitchen, offering healthy snacks, salads for lunch, and cappuccino and latte will also satisfy Millennials. Whey these are investments in space usage, they can help retention. Here’s an inexpensive upgrade, which I used many years ago: a table just for puzzles (jigsaw, word games, etc.). It was great to take a break from the computer where I stressed out over a report to go for a few-minute break to put a few pieces in a puzzle or figure out some words.

And one more thing: Get ‘em out of their chairs.  Try to put coffee stations, kitchens, printers, etc. far away from most workers, if possible. Get employees to get up from their chairs, walk a bit to get their lattes, snacks, etc. Walking is good and, of course, the chance to meet people, even from other departments, for good exchanges.

CCES has the experts to help you improve your office or commercial space to make your staff – whatever age – and customers and clients more comfortable and productive. Contact us today at karell@CCESworld.com or at 914-584-6720.