Category Archives: Energy Efficiency

Future of the Clean Power Plan Under Pruitt

September 2017

It is well known in this first year of the Trump Administration that many existing rules – particularly those promulgated during the Obama Administration – are being weakened, delayed, or repealed. One example is the Clean Power Plan, meant to regulate emissions from coal-fired power plants. The Obama era rule is being litigated in court. USEPA Administrator Scott Pruitt has used this as justification to state that the agency would not object to any state delaying its implementation of the Clean Power Plan and not follow any part of the schedule stated in the promulgated Plan. A number of state attorneys general have issued a letter warning Pruitt that these actions are ill-advised and potentially illegal. This matter is heading to court. After all, Congress has not amended the rule, no court has not called the Plan unconstitutional, and the US Supreme Court continues to cite greenhouse gases as legitimate pollutants that the USEPA must regulate. A presidential executive order earlier this year for the government to not enforce the law apparently has no legal standing.

The Clean Power Plan would require reductions in CO2 emissions from 2005 levels by 32% by 2030. Ironically, the US is already about half way there, independent of the rule, mainly because of market forces encouraging many power plants to switch from coal to natural gas as its fuel; gas combustion results in much lower CO2 emissions than coal.

The US Court of Appeals last year upheld the objections of some parties to the Plan, and subsequently allowed the delay of some aspects of it. But that court substantiated that the Plan is still the rule of law and only some deadlines can be bypassed.

In addition to a number of states objecting to the delays in administering the Clean Power Plan, a number are also promulgating their own new rules and standards to reduce greenhouse gas emissions from power plants and from other sources in response to the Trump Administration announcement that it would withdraw from the Paris Climate Agreement. They are using Paris goals for their own new rules. Many Fortune 500 companies are also creating and implementing their own plans to reduce greenhouse gas emissions, understanding the financial benefits from doing so. With the states and major corporations together achieving major greenhouse gas emission reductions, it may not matter what the courts rule about the validity of the Clean Power Plan, the US involvement in the Paris Agreement, and other climate change rules.

Please note that this article is not meant in any way as a legal briefing or discussion. Please do your own research in terms of the future of climate change or any environmental legislation. CCES can help your company reduce your “carbon footprint”, achieve long-lasting greenhouse gas emission reductions, and do so in ways to benefit you financially, from reduced utility bills to improved productivity to reduced maintenance costs to higher asset values. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Research Finds Proper Lighting Lowers Worker Stress

I recently submitted a great proposal for an upgrade to LED lights for a warehouse. Solid utility rebates, an excellent reduction of energy costs and return on investment (existing lights were very inefficient). Yet, the company’s Board of Directors was split. I presented the facility manager a summary of all the benefits, including that it will likely raise worker productivity. He questioned all of the findings (even as he said he was in favor of the project!), and I only then realized that this company just did not want to deal with change – even if the numbers showed it was beneficial.

After he questioned the ability of proper lighting to improve productivity I decided to look deeper into the notion of lighting influencing workplace stress. A major research study at RPI (found in the journal Sleep Health, June 2017) found that office workers who receive a significant dose of circadian-effective light in the morning, from either electric lighting or daylight, experience better sleep and lower levels of depression and stress, than those who spend their mornings in dim or low light levels. The research team investigated the connection between circadian stimulus (CS), a measure of light’s impact on the circadian system, and sleep, depression, and stress in and better overall sleep quality and mood scores, in both summer and winter seasons.

Further study has pinpointed the likely mechanism. Humans, of course, lived and evolved under the Sun. Natural sunlight contains all wavelengths of visible light and ultraviolet and infrared radiation, as well. Common office or factory fluorescent lights typically emit visible light in a fairly tight range of wavelengths. Many wavelengths our eyes and, therefore, our brains are used to dealing with are absent. This affects our circadian rhythm, as we have not dealt with such a narrow range in evolutionary history, and therefore raises stress and sleeplessness. LED lights more closely mimic the wider range of visible light, reducing the change from our natural system and, thus, reducing circadian disruption and stress.

A 2016 study of the effects on the productivity of garment workers in India working under LED lights vs. fluorescents also showed increased productivity (www.anantnyshadham.com/storage/AKN_LED_may2016.pdf). The authors believe at least some of the effects is due to the reduced heat given off by the LEDs and thus, the more comfortable temperatures in the shop. But the improvement was demonstrated.

CCES has the experts to help you implement a lighting assessment to both save significant energy costs and to raise comfort and productivity of your employees. While saving energy costs are itself great, improving worker productivity (fewer errors, more work done, fewer sick days) can make a business even more money, as well as reputation. We have lighting experts not just to replace existing lights, but to assess if lighting can be made better for your workers or to show off your products or any other reason. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Our Hang-up With Energy Rebates

I can’t tell you the number of times I have approached building owners or managers with great opportunities to upgrade energy systems (lights, HVAC, etc.) saving money right away and paying back the investment in a short time, and the first question I’m asked is “Are there any rebates?”. When I tell a client there are none for that or it is paltry, the building owner/manager actually ignores the many other benefits and is reluctant to do the project. If the payback of an upgrade is under 3 years and the ROI of investment is double digit percent growth per year anyway, why should a rebate “make or break” a project? I guess some people really enjoy “free money”, of part of the cost being paid by a government or utility. While a client and the engineer should look for all available applicable rebates, it is unreasonable to actually squelch a project due to its absence.

So that you understand why rebates may or may not be available in your area, here is some background. It is certainly contrary to business sense for a utility to pay a building to install and utilize technology that will cause it to use less energy (natural gas or electricity). Utilities offer rebates for either of two reasons. One is they are forced to by the state’s government or watchdog agency. These elected officials or people beholden to them know that being able to say that they saved a certain amount of a resource or utilized it more efficiently is what people want and a good thing for a politician to boast. A second reason is that the more energy a region uses, the greater the infrastructure costs are for the utility. In even modest utility districts, utilities are forced to spend billions of dollars in capital costs to upgrade, expand, or replace existing infrastructure (utility lines, gas lines, etc.). And, of course, to ensure they are up-to-date and safe. If infrastructure fails, and a power blackout results or a gas line explodes, the negative headlines, the anger of residents and businesses, and being hauled into legislative hearings over the failure, is something to avoid at nearly all costs. Therefore, the less energy used, the less that infrastructure needs to be upgraded and at a lower cost.

Therefore, it is important to do research on rebates. The availability and amount for different programs vary between utilities. In general, most rebates are universal for a utility. A rebate for LED lights resulting in decreased electric usage is valid throughout a utility’s district. However, some utilities designate some rebates as greater in different areas within the district. For example, in New York City, Con Edison’s Demand Response Program encouraging building owners to use their own generators and be off the grid during peak demand periods, has greater rebate payments for buildings located in a certain area which has seen the greatest growth in electrical demand (gentrification) and weakest infrastructure. And lower incentives everywhere else, including zones where infrastructure is fine. So look carefully at the conditions of a rebate.

Part of your research should also be on timing. Utilities and the commissions that oversee them often decide annually on rebates. They decide if they are effective or not, look at market conditions, and then adjust for the next year. A rebate at a certain level this year may go down (or up) next year or be eliminated altogether. For example, some utilities are reducing or eliminating LED lighting rebates. The price of LEDs has droped recently, plus it is more accepted. Many feel an incentive is no longer needed; savings and payback are sufficient without it. Your engineer (including this one!) should keep up with the latest trends and talk to those managing rebates.

I should add that I have seen the opposite reaction (occasionally) of building owners and managers feeling almost guilty about receiving a rebate for an upgrade. Nobody should feel this way. Most rebates come from charges that are in your monthly utility bill. You pay into a fund used for rebates. Therefore, when you do an upgrade, you are simply taking back the money that you have put in!

In summary, research or have your engineer research and go forward with any energy rebates that an upgrade qualifies for. However, don’t be hung-up on it. If a rebate (or tax deduction or other financial benefit) does not exist or is only worth a small percentage of the upfront cost, let it not stop you from doing the project. The vast majority of energy upgrade projects are very financially beneficial for building owners for a long-period of time even without utility or government rebates.

CCES has the experts and experience to help you get the maximum financial benefits from an energy upgrade, including being up to date on potential rebates and to get you through the application process. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Plain Talk: What Is An Energy Audit? Why Do One?

What Is An Energy Audit?

A professional energy audit tells you how much energy you use, its cost, in what functions in your building, and provides multiple recommendations that will result in significant energy usage and cost savings, if implemented.

Some Of The Many Direct Financial Benefits

Real life examples show that properly-performed energy audits can provide a building owner direct financial benefits, such as:

• Significant energy cost savings beginning quickly, that grow in value as rates rise, and continue for a long time; (one upgrade saves costs for many years)

• Tenant attraction/retention, and, therefore, higher rents than less efficient space

• Greater worker productivity/buyer comfort (retail), all adding to tenant satisfaction

• Rise in of asset valuation (which would a buyer prefer, a building demonstrated to be energy efficient or a dark, leaky high oil/gas usage one?)

• Achievement of building certification standards, which will further raise the value

• Potentially obtain utility rebates, state grants and federal tax incentives. More and more entities want buildings to be efficient and will pay for verified achievements.

Simple Example

A simple example of energy efficiency is lights. LEDs can produce the same – even more – light for less than half the wattage of an incandescent or fluorescent. For example, if you replace one 40-watt fluorescent light with a similarly-sized 18-watt LED, then the bulb will use 22 fewer watts to create the same light. If it is used 10 hours/day, 5 days/week, 50 weeks/year, then electricity savings is 55 kWh per year. At $0.20/kWh, the savings is $11 per year. From just one light! If your building uses hundreds of lights, then the savings is so much more. There is no risk of failure; 18 watts means 18 watts.

How To Get Good Ideas For Savings? Have A Professional Energy Audit Done.

The professional group ASHRAE has defined 3 levels of professional energy audits.

Level I

• Brief analysis of the building’s historic energy bills

• Brief on-site building survey to gather basic information about energy use and systems (i.e., very rough count of lights, basic nameplate information about units)

• Listing of potential energy use- and cost-saving strategies, known as Energy Conservation Measures (ECMs). Rough savings and cost analysis for each one.

Level II

• Detailed analysis of the building’s energy bills, preferably previous 24 months.

• Detailed on-site building survey to identify more thoroughly the building’s energy systems and equipment (i.e., more thorough, accurate lighting count, more details about boilers, rooftop units, etc.)

• Identify, describe ECMs and provide a more detailed savings and cost analysis, including estimating payback (time it will take for energy cost savings to equal outlay plus operating costs of ECM) and return-on-investment.

• Discussion of any changes to building operations and maintenance procedures by each listed ECM, including secondary benefits (i.e., reduced maintenance).

Level III

Includes the components of a Level II Energy Audit, plus:

• More extensive data collection, particularly of the physical building, such as leak points, doors, and windows.

• Use of approved, site-specific energy computer models to estimate heat losses and infiltrations throughout year

• More refined energy and financial analysis from multiple vendors, including upfront costs, incentives, savings, and ROI.

• Evaluation of long-term energy savings and operational cost trends.

Smartest Way To Get Started

So now you will look for great long-term energy savings opportunities for your company. Count how have many buildings you wish to audit and their complexity. If your company manages many buildings, it may be useful to perform a Level I energy audit on all of them. While the ECMs may contain rough estimations, at least you can compare energy efficiencies leaving yourself with a group with greater opportunity to focus on. If you have a smaller number of buildings and/or they are complex (involve many functions or have many specific energy systems), then you may want to have Level II audits done to get good estimates at a reasonable cost. Level III audits are very expensive and generally do not justify the extra expense and effort unless such accuracy is necessary.

Hire An Experienced Pro

“You get what you pay for.” Why skimp and save a few thousand dollars on an energy audit if that means hiring someone without a professional engineer’s license or equivalent certification (i.e., CEM). They can provide numbers that are plain wrong or lead to missed opportunities or pursuing projects that are not worthwhile; lost money! This can cost your company much, much more than the savings of a “cheapo” firm. Hire a qualified energy auditor; there is a lot riding on it. Make sure the professional is experienced in buildings similar to yours.

As you can see, there is no magic wand that can be waved to bring instantaneous, substantial energy cost savings. One must invest time and money and bring in smart, experienced professionals to do it right. But once done right, the savings and the direct financial benefits are tremendous. Most good energy projects have ROIs better than what is achieved on Wall St. Good luck!

CCES has the technical expertise to perform all types of energy auditing for diverse building types to maximize your financial benefits. We can get you the applicable incentives you deserve and can project manage ECMs you choose as most relevant to your building. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Proof of Benefits of Going Green: How To Get Started

Last month I wrote an article highlighting the growing proof that making a building more “green” and energy efficient has many financial benefits, beyond just saving utility costs. Scientific research has shown “green” buildings lead to greater asset value, larger revenue, and fewer sick days and greater productivity and attention span of workers.

If this has convinced you to look into “greening” your building, here’s how to get started. Here are crucial items to consider as you move forward, usually overlooked:

1. You know what “green” is, but you need to explain fully what it is to the building owner or corporate manager. Develop realistic expectations for all stakeholders. What does the group want to achieve? Are they achievable? Any limitations? I once performed a preliminary “green” evaluation of a company’s headquarters building, including a complex analysis of potential energy efficiency strategies. A high-level contact was surprised; he literally thought that the project’s goal was to recommend where to plant trees! (He hadn’t read the Scope of Work!) Make sure all involved have unified goals, and understand the project is a complex process.

2. Determine your ultimate “green” goals. There are many types of “green” projects. Determine what is right for your building or company based on needs, budget, etc. You may wish to have your work officially certified under the LEED or WELL program. Or you may wish to bypass any official certification, and perform small, focused upgrades. That’s fine, too. What does management want most to achieve: reduced costs, reduced greenhouse gas emissions, better work environment? Do you want to be a leader in your field or “just a player”? There is nothing wrong with reduced goals if you have budgetary constraints. There is something to be said about watching others and learning from their mistakes. These approaches need to be thought through and decided early on.

3. Make sure the contact understands that there is no formula to become green. No shortcuts. No “magic wand.” It takes an understanding of the specific building, its physical structure, the equipment within, the people and productivity inside. Anyone promising you a quick fix will not produce the fix for you, and it’s likely not quick either. Therefore, hire an experienced pro, preferably an engineer.

4. Be prepared to work a little. After you hire the experienced pro, don’t just sit back and expect him/her to do everything. Work with that person to ensure that the work is done to meet your needs. First, begin by providing the pro with the data needed to perform the analysis. Nearly all “green” projects will require the engineer to evaluate current and historic data: concerning the physical building, its history, size, uses and 24 months of recent energy, water, and sewer bills. You should begin to prepare this information as you are reviewing proposals or performing the administrative work to bring the engineer in. Be prepared to field questions from the engineer because while the building may be second nature to you, it is new to the engineer. Time can be saved by anticipating such questions and providing the engineer with information you think is important.

5. Site visits. It is likely that the engineer will need to make multiple visits to the facility to perform counts of equipment and to assess how equipment is operating in order to determine which items things could improve or be more efficient. Ensure that a person knowledgeable about the building and its equipment and operations is with the engineer at all times to answer questions or fill in on procedures. The site visit may involve testing of all major equipment. For a robust energy evaluation, it is important to test both the heating equipment (boilers) and cooling equipment (AC) for a building. For one energy audit, I was asked by building management to “get it over with”: to test both on the same visit. So on a 95°F day, we tested the building’s boiler! (We did it during lunch hour when many employees were out of the building!). But it is crucial for you to work with your “green” engineer to enable all goals to be met and data to be gathered.

6. Ask for and review interim reports. Sometimes building managers then step back and wait for the “green” professional to perform the analysis and develop the strategies and conclusions. But there is nothing wrong with asking the engineer for an early, interim report to make sure the professional has not strayed from the agreed-upon goals. When reviewing an early draft report, remember there may be gaps in it or certain calculations or conclusions you are interested in that are missing. But do review it and speak up if the direction it is going, you feel, is not what you want. Having such a discussion ultimately saves the engineer time and aggravation to be steered in the right direction early.

OK, OK, A Word About Costs

It is probable that as a “green” evaluation is being implemented, you are thinking about money. Good projects are not free and you may have had to put yourself on the limb to get the upfront cost for this project, not knowing what the exact results will be. Yes, it costs money to study your building before the design, procurement, and installation of smart strategies which, at that point, you have a better idea of the financial benefits. Remember, there is growing evidence that all green projects done right will pay back initial costs in a reasonable timeframe. I have seen numerous such projects pay back initial investment in terms of utility cost savings alone (not including the secondary benefits) by 15, 20, 30, and even more percent per year. Yes, the equivalent of putting that money in the bank and making this much interest. No bank nor Wall Street investment pays like a good energy project, without risk (a 20-watt bulb replacing a 60-watt one will save you two-thirds the energy; nothing magic; it’s the numbers!). So be confident working with your engineer to implement smart upgrades.

Also, a growing number of utilities and governments offer financial incentives or tax breaks to install and operate energy efficiency technology. IRS Section 179D (tax deductions for energy upgrades) has expired, but a new version was recently co-sponsored by 30 US Senators from both parties. 179D should return and be retroactive. Also, lenders see that there is a reduced risk on lending for an energy or green project because the financial benefits will be there and the borrower should be able to pay the loan back. This results in more competition to loan money, and lower interest rates.

CCES has the experience and expertise to help your building become more energy efficient and “green” and will work with you to meet your goals, however humble or extravagant. Work with us to get the maximum financial benefits from going green. Contact us today at karell@CCESworld.com or at 914-584-6720.

It’s Not Just Lower Energy Bills: Proof of Productivity Improvements By Going Green

Buildings account for about 73% of total U.S. electricity consumption, according to the U.S. Green Building Council (USGBC). Therefore, building owners and managers can help improve our energy efficiency and independence. However, the real estate industry has been slower than others in embracing and implementing energy efficiency, even though it stands to benefit greatly from energy efficiency gains.

The Many, Great Financial Benefits of Green Building

A recent report from CoreNet Global, “The Future of Corporate Real Estate”, discusses reasons why building owners will benefit from implementing such strategies:

• reduced utility costs,

• higher selling price for “green” buildings over non-green units,

• greater demand for such buildings, and thus, greater rental income.

Reduced Utility Costs

It goes without saying that if you use less electricity or gas or oil to heat a building, you will decrease your utility costs. Energy rates are among the fastest growing expenses of a building owner (greater than that of labor rates), and a potential drag to profitability. Using less energy gives you control to reduce this cost (you have no control over energy rates).

But utility cost benefits go beyond just this. More utilities – particularly in large cities – are charging not only for electricity usage, but also for peak demand. Whatever your electricity need for your building in (in most cases) one 15-minute period per month will lead to a huge additional charge, even if usage and demand are low for the rest of the month. Thus, ways to reduce peak usage can be very effective in reducing utility costs.

There is also a special value to investing in strategies to reduce energy usage and peak demand. Let’s assume you install technologies that reduce your utility costs by $50,000 per year. The other way to make money is to increase revenue. But it may be difficult to raise rents by $50,000 per year because in most markets rentals are quite competitive. In most cases, it is easier to save money with energy upgrades than to simply raise rents. And the nice thing about energy upgrades is that the savings due to installation of technologies (LED lights, upgraded HVAC equipment and motors, etc.) will continue year after year (one does not yank out insulation the year after it is installed!). So the $50,000 per year savings will occur year after year and in fact, will rise slightly as energy rates only rise. This year’s $50,000 will likely become $52,000 the next year and $55,000 the year after, etc. based on the one-time effort of investing in smart stratagies.

Green Buildings Reduce Operating Costs and Draw Higher Rents

As more properties are becoming certified as “green” over the last decade, comparative studies are beginning to be completed about the overall financial benefits of these upgrades, including their relative operating costs and demand for such properties, which has a large influence on rents. Of course, many factors influence what a building owner can collect in rent. Studies have recently been conducted that compare buildings with similarities in many areas except for their “greenness” to see if there is a difference, which can likely be attributed to energy and water efficiency and related factors.

A recent study indicated that in Los Angeles, owners collected rents that are 35% higher per sq. ft. for LEED-certified space compared to those in non-LEED space in buildings with similar vacancy rates. In addition, this same study compared operating costs of green-certified vs. non-green buildings, as well. Operating costs were shown to be 13.6% lower for new green construction compared to non-green buildings and 8.5% lower for existing buildings upgraded to a green standard compared to a building not upgraded of similar age.

There have been a number of studies showing that certified green buildings also increase worker productivity and satisfaction and reduced sick time, the crux of any business as profits stem from productive workers. A business that understands that a particular building has conditions that will lead to greater comfort and productivity will result in seeking to rent that property and to renew its lease.

In addition, a satisfied work force has concrete benefits for a business in terms of lower turnover, reduced business disruptions, lower risk, and less time training new workers. A relatively new certification program from the International Well Building Institute, called WELL standards, focuses on building conditions that will result in healthier, more satisfied, more productive workers. A number of studies from research institutions that specialize in productivity are showing – now that there are a growing number of upgraded and LEED-certified buildings – that significant improved worker productivity does occur, based on measurement of tests on tasks and memory. As this research is being publicized and accepted in the business world, companies are looking to relocate their business to LEED- or WELL-certified buildings to improve productivity even at the cost of greater demand and rents.

Assets’ Higher Resale Value

As more properties are becoming certified as a “green” building over the last decade, studies are beginning to be completed about the overall financial benefits of these buildings, including their value, based on sales.

A 2015 USGBC publication “The Business Case for Green Building” provides several facts concerning the resale value of and income from green buildings. In Los Angeles, in 2014, ENERGY STAR or LEED-certified buildings had an average selling price of $329/sq.ft., while that for a non-certified building was $244/sq.ft., 35% higher.

According to World Green Building Trends (http://naturalleader.com/wp-content/uploads/2016/04/McGrawHillGBStudy.pdf), building values increased by 10.9% for green new construction compared to non-green (6.8% increase for existing building upgrades) and asset valuation rose 5% for new green building projects vs. non-green (4% for green building retrofits).

CCES has the experts to help you assess how your buildings can be more “green”, whether it be certified in LEED or WELL programs or just more energy efficient. We can help you assess, strategize, design, implement, and test new systems to maximize the many financial benefits, like those listed here, with the least disruptions of your operations. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Realistic US Energy Trends in 2017

The Trump Administration is beginning to have its imprint on energy policy. Yet, many potential moves may not be very effective given market forces, which certainly drives business. The University of Texas’s Energy Institute has issued an interactive map showing the cheapest energy sources and greatest availability throughout the US. http://calculators.energy.utexas.edu/lcoe_map/#/county/tech and http://www.vox.com/energy-and-environment/2016/12/12/13914942/interactive-map-cheapest-power-plant

The Future of Coal is Not Favorable

Despite the President’s promise to bring back jobs to coal miners, the map’s information is pretty obvious that natural gas and renewables are likely to provide much of the U.S.’s new electric capacity in the foreseeable future. In addition, the map shows why the cost of building and operating new coal-fired plants is so high and non-competitive. This concurs with recent papers issued by the US Energy Information Administration.

Part of the problem for coal is geography. Prices to build wind farms have plummeted lately, and the Plains states, which have been high historic users of coal for power, are ideal location for wind plants (they have plenty of it). And in the South and Northeast, natural gas prices have dropped greatly, in part because of fracking and shale gas. Besides raw materials being cheaper, natural gas plants are more efficient than coal-fired plants. A modern gas-fired plant can convert 60% of the theoretical energy to electricity; for a modern coal plant, it is about 35%. Even if environmental regulations affecting coal are repealed, wind subsidies are eliminated, and gas prices spike, the cost of a new coal-fired power plant still cannot compete with wind or natural gas, and investors and builders will go with gas-fired and renewable power plants.

The Future of Nuclear Power is Murky

Despite its many detractors, nuclear power is growing in Europe and other parts of the world and, without a doubt, results in much lower greenhouse gas emissions than any fossil fuel-based plant. However, it is still expensive to build a new nuclear plant in the U.S., an estimated $8,000/kW, almost double that of other forms of electricity. There is research on advanced reactors with smaller, modular designs that in the future may be safer and less expensive than current mammoth reactors. The Trump Administration has signaled its approval of nuclear power, but has not suggested what it would be willing to do to help alleviate the cost differential.

Renewable Power

All signs indicate that the cost of renewables (solar, wind, geothermal) will continue to drop in the coming years. Renewable power has grown greatly worldwide, spurring a learning curve and a drop in costs due to greater efficiency and experience. Even if utilities and state governments reduce or end incentive programs for renewables, these will still rank in many parts of the country as the most cost effective power plants around. This will be especially true if and when large-scale battery power can be modernized both technically and financially to address the issue of inconsistent generation of power from renewables.

CCES can help you assess your future energy options to give you maximum operating flexibility and maximize your financial benefits. Contact us today at 914-584-6720 or at karell@CCESworld.com.

HVAC Industry Prepares for New Energy Standards

The HVAC industry must prepare for major changes with new USDOE energy conservation standards for commercial air conditioners and heat pumps, (RTUs or rooftop units), scheduled to take effect Jan. 1, 2018.

https://energy.gov/sites/prod/files/2015/12/f27/CUAC-CUHP%20CWAF%20Direct%20Final%20Rule.pdf

https://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=35

https://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=49&action=viewlive

The rooftop air conditioner standards — which will cover new units found on smaller buildings, such as hospitals, schools, and retailers — will take effect in two phases. Minimum efficiency will increase by about 10% as of Jan. 1, 2018, and by 25-30% as of Jan. 1, 2023. New standards for new warm-air furnaces become effective in 2023.

Based on USDOE estimates, the new rooftop air conditioner energy standard will save 1.7 trillion kWh over 30 years, which is expected to outpace any other standard completed by the agency, more than any other USDOE standard ever. The USDOE estimates that the new standards would net a typical building owner $4,200-$10,100 over the life of a single rooftop air conditioner. There does not appear to be any movement toward repealing or changing the standards by the new administration.

HVAC manufacturers must incorporate significant design changes in order to comply. Most affected manufacturers have not publicly stated any opposition to the new energy standards, as a major selling point of this equipment is energy efficiency. Of course, implementing new technologies and designs costs money, which will likely raise the cost of new units, but potentially in small increments given the competitive situation.

Another industry likely to benefit from the upcoming standards are utilities. RTUs particularly use a lot of electricity on hot summer days when overall electric demand is at its peak and a concern of utilities to deliver reliable power to everyone. More efficient units gradually being purchased and installed may stem the tide of annual increases in electric demand and make managing a large grid system a little easier.

And this rule may well benefit the consumer. Given the overall financial benefit of operating a more efficient unit, it may be advantageous to wait until 2018 to purchase additional units. Or those on short budgets may want to maximize purchases in 2017, saving capital now for longer term costs in future years.

CCES has the experts to assess your HVAC equipment to determine more efficient units and controls to minimize electric usage and peak demand and maximize financial benefits. Contact us today at karell@CCESworld.com or at 914-584-6720.

Changes to Lights: You Won’t Recognize Them!

Lights as we know them are changing radically and probably quite fast.
In many technological upgrades, the upgrade is introduced first, but is slowly implemented as it is expensive. But as more competitors get into the business, both raw materials and the manufacturing process drop in cost, so that the upgrade becomes more affordable and with its advantages, takes over the market. This is exactly what we are seeing with LED lights. Initially, many people and companies while recognizing the steep drop in electricity usage, put off purchasing them because the upfront price was so expensive, even with government and utility rebates. But now raw material costs and global competition have forced prices downward, shortening the payback. So much so that many government and utility LED incentive programs are being slashed or even eliminated. Why provide a rebate when the technology is affordable? The payback is shortening so much and LEDs are so useful and reliable that it is a real “no-brainer”.

Similarly, occupancy sensors and other controls will be fairly standard, too. They have become more reliable since the days when sitting still in a room would lead to lights turning off. And, now due to “Alexa”, the whole concept of lighting control has changed.

Which leads me to my main point. Not only is lighting control changing, but the concept of lights is changing. For a century, lights were these bulbs that emit lumens of light after an external signal (electricity) turns on and off the mechanism of burning (in tungsten in an incandescent). A physical effect causing the ability of the bare bulb to produce light. But now, lights are no longer items that just produce light. Lights in a ceiling or outdoors are now becoming little computers that can both do many things and be controlled easily through the internet. Besides being turned on and off, they can be dimmed or made into strobes or other waves, or emit different color light over time, such as dimming or making a warmer tone close to bedtime. The miniaturization that allows a whole host of functions on an easy-to-hold cell phone can allow a simple “light bulb” in a high hat in a ceiling to perform many functions – even outside of lighting, such as being a sensor with a loud alarm or projecting onto a screen.

These functions can be controlled (turned on and off or made more or less intense and timed) using a cell phone or another computer hooked up to the Internet. You have probably already seen how Amazon’s “Alexa” can turn on and off lights (and other appliances and devices) with simple verbal instructions. There may be a day very soon where light switches on the wall are obsolete and no longer designed in buildings, as all lights will be controlled by a human voice. Apple’s “Siri” and Google’s “Home” are moving in this direction, as well.

The major LED light manufacturers (Philips, Cree, Lutron) already sell “smart” bulbs that can be wirelessly controlled though your home’s Wi-Fi. You are probably familiar with those circular timers that are plugged into an outlet and the lamp plug goes into it. When the time is a certain time, the raised portion turns on or off the electricity turning on or off the lamp. This same effect can now be done wirelessly. You can program into your PC or cell phone the times to turn on and off lights (for example, on at sunset, off at bedtime). You can program them to turn on or off groups or individual lights in a room or change their brightness to create the atmosphere you want (for doing desk work, for cooking, for eating, for watching TV) when you want.

The voice-activated systems, like “Alexa”, allow quick changes from programmed timers. Alexa does not have to be in the room with the lights whose timing needs to be changed. Certainly an advantage of any of the voice-activated system is to turn on lights in the dark when one is concerned about falling or tripping. Alexa, of course, operates through Google’s “Echo” voice system, a physically standing system in one or several rooms. Apple does not operate such a system for Siri. One would need to speak into a cell phone to give Siri directions which it could use to control lights. Cell phones are often forgotten or misplaced. A standard Echo system always in a particular room may – for some – be more reliable.

Smart lights can also be used for commercial purposes. Imagine a retail store changing the lighting patterns to emphasize certain products on shelves or mannequins based on the outdoor light and customers present and other factors. Imagine a manufacturing facility adjusting lights to the needs at a particular phase of the manufacturing process.

And – here’s a scary thought after we have spent so much time educating the public on LEDs – may they soon be obsolete? Growing research shows that lasers can be used in many lighting applications successfully and using less energy. Stay tuned.

CCES has the experts to help you evaluate, design, and install the most efficient, sturdy, and flexible lights for your building and usage, while maximizing the financial benefits. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Out-of-the-Box Approaches To Saving Energy

Many articles in this blog/newsletter have been written with conventional approaches to save energy: mainly on new technologies, or applications of old technologies, or behavioral or operational changes. I hope you have taken them seriously, implemented some, and reaped the benefits. If you haven’t, it’s never too late!
But there are other, unconventional approaches – some you have thought about in other contexts – that can successfully save energy, as well. One is using advanced scheduling and resource planning applications and software. This may be relevant to you in order to better utilize resources and staff, to better distribute inventory, to better produce product. But improved scheduling and organization can also save energy. An excellent article in a recent Chemical Engineering Progress discusses this concept well: https://www.aiche.org/resources/publications/cep/2017/march/improve-production-scheduling-increase-energy-efficiency.

Advanced production scheduling (APS) software uses mathematical algorithms and logic to optimize the use of inputs (resources, equipment, and labor) to develop schedules to optimize production or inventory given constraints. By improving equipment effectiveness, reducing changeover and startup timing, and improving supply chain utilization, not only can a facility schedule more effectively and predictably, but it can also save resources. And among the resources saved by more efficient scheduling of processes is energy and, as an extension, energy costs, as well.

Therefore, look into upgrading your scheduling processes, including obtaining the best APS software available for maximum benefits.

Another newer technology that can save energy and costs, but not thought of that way, is the driverless car, something that will likely soon be implemented. Of course, a lot of publicity about driverless cars centers on safety. Can one be driven safely in one’s neighborhood or across the country without an accident (or very few)? One thing that is forgotten is that with software and algorithms, controlling a car (and not a human with limitations and performing actions based on emotions) becomes more direct. The software can determine the true route of the shortest distance travelled, not the guess of a person. The software can control the movement of the car so that it is consistent and has fewer stops and starts. All this should lead to improved gasoline mileage and with that, gasoline costs saved, not to mention air pollution impacts reduced, too. Multiply this by millions of cars driven this way, it could lead to a great savings in overall gasoline or diesel usage worldwide (and improved air quality on the ground level). This is of particular interest in the trucking industry, which would look favorably of reducing labor and fuel usage.

CCES has the experts to help your entity find ways to save energy and energy costs, whether through conventional, proven technical upgrades of existing systems, changes in behavior, or “out-of-the-box” approaches. Contact us for more information today at 914-584-6720 or at karell@CCESworld.com.