As the world moves to address climate change, being more energy efficient and using cleaner sources is being encouraged by both utilities and governments. Only 37% of respondents to PwC’s 2022 Annual Global CEO Survey said they factored greenhouse gas emissions into their long-term strategy at all. GHG emissions can be reduced by energy efficiency or clean fuels. One way to encourage such changes is with money; incentives and “green” tax credits. Such incentives have and will increase more in 2023 because of programs spurred on by the recent Inflation Reduction Act. Not only are such efficiency and clean energy projects cash positive because of the cost savings and reduction in O&M costs, but tax credits and rebates improve the economics even more.

Therefore, take the time to research the utility and government programs to enhance such potential projects. Some people or companies practically feel guilty taking money from these programs. No. The institutions have the funds budgeted and want to give out the credits or rebates, as long as one qualifies. Thus, the programs should stand out within their websites. Work with your Financial colleagues to ensure that the incentives will help your firm and not trigger other issues. But do research and take advantage in order to make the best business case for your proposed change.

Green incentives and taxes are offered all over the world. In Europe, taxes on excess fuel or water use and plastics and waste materials exist. In the US, there are few such taxes, but more tax credits for doing the right thing. And other incentives in the form of rebates abound in the US. Once the new technology is installed or strategy implemented, an appropriate check is sent to the business owner.

In many parts of the US, utilities or governments offer incentives that range from 30 to 70% of the upfront cost of the change. For a large capital cost item, such as heat pumps, boilers or rooftop units, that can be “game-changing”. Here are 3 items to be aware of as you consider energy upgrade incentives:

• You can’t “double-dip”. In many cases, the utility and the government offer similar incentive programs for the same item, such as upgrading to LED lights. But don’t think you can simply get rebates from both the government and utility. In most, if not all, areas, the two entities share data to prevent businesses from such “double-dipping”. And such an attempt may disqualify you from both programs.

• Don’t hesitate! Get youe incentive while you can. Some business owners think that although an incentive program is good, if they wait a year or more, it will be better. This is not sound thinking. Incentive programs generally last 1-2 years before the agency or utility evaluates it to continue, change, or end it. In some cases, businesses jump on the bandwagon such that little budgeted money is left in the program – for you. In some cases, even a good program is underutilized, and the entity decides to discontinue it. Even some successful programs are ended because the agency feels a change is needed. So for these reasons, when you come across a good incentive program and you were planning to make the changes anyway, go for it. Don’t delay; the program or the money may be gone or reduced, not to mention that you lose a year in savings not realized.

• Be aware of trends. Remember, incentives are just for that – an incentive to get businesses and buildings to procure and install an energy-efficient item. If over time, that item becomes more accepted, cheaper and beneficial, then incentives are not needed. For example, many utilities are cutting their LED incentive programs. LEDs are more accepted, their prices have come down lately, and the financials are so good (paybacks in many cases in under a year) that utilities have realized that incentives are no longer needed. Many are cutting back on the rebates. So be aware of where incentive trends are heading and pick smartly.

And here is a critical point: what if no incentives exist? What if you a very beneficial potential project comes up but your local government or utility does not offer a tax credit or rebate? Do you not do the project because no outside financial incentives exist? I hope not! If the project will pay for itself in a reasonable time and benefit the company in other ways, it is important for you to go forward with it, even if there is no payback from an outside entity. I have seen businesses pick a project or a vendor, not on the basis of how good the equipment is and its payback, but on how much the incentive will be. Even if an outside tax credit or incentive is not available, go forward if all the other benefits exist.

CCES has the experts to help you decide on the best energy upgrades to be more energy efficient, reduce your carbon footprint, and be more sustainable. We can research and prepare for you the forms to earn government or utility rebates, if you qualify, as well as manage implementation of the project. Contact us today at karell@CCESworld.com or at 914-584-6720.

Perhaps your entity has decided to establish a Sustainability or Climate Change program with robust goals to reduce greenhouse gas emissions, energy usage, waste generation, etc. How does one establish such a program to better ensure success in meeting the goals and communicating successes? Some people think that once one establishes such a program, one goes right out to the plant and collect data. Not so fast! It takes planning. Really!

1. Establish the Right Committee.  Make sure the right people are involved in the endeavor. Establish a committee of people at least somewhat knowledgeable about sustainability and Climate Change bringing with them knowledge of needed areas. It’s important to have representation from Engineering, New Product Design, EH&S, Financial & Accounting, Legal, Communications. Why? Because these areas contribute to the program. There are contracts and laws to understand and advise on (Legal). New technologies to consider installing and implementing (Engineering). Balancing costs, benefits, taxes, rebates, and borrowing (Financial). Communicating progress internally and externally (Communications). Leaving out even one such expertise can sidetrack an entire program. Gather not just the experts, but those knowledgeable or willing to learn about Sustainability and establish roles.
2. Critical Addendum: Get the CEO involved. A program like Sustainability or Climate Change may not be liked by some at the company and could get short shrift when it comes to funds, respect, discussions, etc. Such people who could sidetrack this are not bad people; they are just people not familiar with the concepts and the potential benefits for the company. They did not learn about this in school. Getting the CEO involved will overcome any interference by others in Management. Let the CEO know about the potential benefits and what is involved and the progress of the program (no surprises!).
3. Estimate Future Progress and Problems.  Before you get too deep into company details, think about the long-term future of the program. What do you wish to accomplish in the first year? How about longer term, like in 3 years? Think deeper. Do you really think that you can achieve these goals given the reality of your entity? Do some honest introspection and think about the culture of your company. Are there potential barriers to success, such as “difficult and competitive to get funding for even a good project”, getting the CEO to keep this as a high priority; getting positive feedback and cooperation from Labor; getting approval to make changes to operations, etc. These are issues that can de-rail a good Sustainability program even if the Committee is gung ho. Try to anticipate what issues may come up in the short- and long-term and begin to “grease the wheels” to alleviate them. And don’t just study the negative. What achievements can be made and which ones can occur early on to give perhaps skeptical stakeholders confidence that the investment in Sustainability is worth it? Later work toward the success of early-progress projects and be ready to share it.
4. Create a Vision. Develop a vision of how Sustainability can change the entity to be more clear, modern, “hip”, able to be flexible in future crises, and profitable in the future and communicate this throughout the organization.  Make sure you do not overpromise or promise “utopia”. But do create a positive vision to motivate Management, staff, and stakeholders to be a part of. Use videos and social media, if possible. Try to motivate diverse people to help out or do their part.

Yes, it seems like a lot of work, but taking these steps as you establish your Sustainability Program better ensures long-term success and favor within your organization. And, after all, that is what you want, right? Success, favor, funding so you can implement the projects to make Sustainability a success and beneficial. Have a good year!

CCES has the experts to help your firm establish a successful Sustainability or Climate Change program. Done the right way. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Normally, December is the month in this newsletter that I delve into areas outside science and engineering and to more philosophical and business matters. But here is another article to contemplate as we begin a new year. One of the greatest dilemmas we face in running or managing a business is change; in other words, whether to “stay the course” or make changes. Making the right, or rather, avoiding the wrong, choice could be existential for your business or running your building.

It is rare that one experiences “smooth sailing” in running a business or building for a significant amount of time. Approaches may work now, but issues or barriers normally come up in time. How do you even recognize that a little problem is a little “speedbump” or a sign of issues to come?  Is the new issue temporary and, in time, will resolve itself? In other words, is it OK to ignore it? Or might it be the beginning of a cascade of problems? And, if so, is it a sign to change your approach or even the way you operate? Finally, even if important issues are not coming up, does it make sense to incorporate change anyway to prevent potential issues from coming up and/or not becoming stale?

I don’t have answers for these questions. Obviously, it all depends on the individual business, building, and circumstances, both markets and personalities. But remember that while buildings and businesses can be considered set “structures”, the circumstances they live in do change. Especially, we, as energy and environmental engineers, should be cognizant of that. Things change – technologies, economics, staffing – and we need to recognize that. We engineers should certainly keep up with new technologies, laws, and trends in our own specialty, but also think about the bigger picture, how it affects us and our businesses. Should we ourselves change course, and, if so, how drastically and when? In addition, we should use information about changing conditions in our consulting and be able to provide information on such changes to our clients and colleagues and anticipate how it might affect them.

For example, there are major changes occurring in New York City in the climate action and energy efficiency areas. While energy efficiency has been applauded and awarded with incentives, it was not mandatory. Now it is. Local Law 97, which went into effect in 2019, mandates energy efficiency or clean energy standards be met by 2024 or the building owner faces high fines. Six-figure fines. CCES has helped several building owners and managers deal with the implications of this change and go forward with smart projects to reduce energy usage to eliminate any potential fine. But I also have discussed LL 97 with several building owners at risk yet are ignoring the law and risk massive fines. In one old commercial building in a poorer section of NYC, the building was simultaneously heating and cooling the spaces and was using very inefficient lighting. When I calculate a potential high fine if such usage continued, the owners shrugged their shoulders and ignored the warning. They ignored a major change.

Hoping for this new year, that you confront the new challenges and barriers that come up in your business and you think it through and execute smart strategies in reaction.

CCES can help your firm anticipate issues in the energy and environmental realms and develop smart strategies for you to choose from to address them. Contact us today at karell@CCESworld.com or at 914-584-6720 to discuss at no charge.

We all do this, right? Make some New Year’s resolutions to better ourselves around January 1, swear we’ll follow through, but then give up on them by the end of the month!

Here is one business resolution for you for 2023 that will improve profitability, greatly reduce costs, increase employee and customer satisfaction, and reduce operational costs. Create and implement your own energy management plan. It’s more important than ever. In case you didn’t notice, energy prices soared in the US in 2022, up 13.1% overall. This rise had to impact just about every business. What should you do? Just shrug your shoulders and “take it”? No. You can control costs by developing and implementing energy strategies in 2023! And the cost savings of smart strategies can be enjoyed right in your first billing cycle.

What is an Energy Management Plan? It is simply strategically managing your business’s energy usage to ensure it is there when you need it, at an affordable cost. You can implement smart energy saving projects piecemeal or develop a coordinated strategy to align business practices with energy efficiency.

A strategic energy management plan can help you in 2023 in these ways:
• Reduce your costs. Do you enjoy seeing Bookkeeping writing out a large check to the utility every month? In most cases, you can do the operations your business needs to do but do so using less energy, based on smart, proven, new technologies. An analysis of options and whether it benefits your business can lead to significantly reduced costs and greater equipment reliability.
• Risk reduction. It’s hard to believe, but there are parts of this country whose energy infrastructure is not robust enough to guarantee electric or natural gas supply at all times when needed. Imagine the impacts on your business if you had no power – even for a short time. Your operations, equipment, refrigeration, data center! Being more efficient and having backup sources will reduce your business’s risk of a catastrophic failure and, thus, improve stability when faced with potential outages or high costs.
• Competitive advantage. Any way you can smartly reduce energy costs will put you in an advantageous situation compared to others who don’t address this.
• Customer/Employee satisfaction. A comfortable, well-lit, and, yes, green premises will lead to greater satisfaction among customers and employees lead to increased business and greater workforce retention and talent acquisition, the latter being a very big business advantage in this era of worker shortages.

Start slowly but make your 2023 New Year’s resolution to not accept high energy prices, but to smartly use technology, when applicable, to do better and reap the great benefits.

CCES has the experts to help your business develop such a plan tailored to your needs to be energy efficient and develop backup plans for greater reliability. Contact us today at 914-584-6720 or at karell@CCESworld.com. Happy, healthy, prosperous New Year!