In the last couple of years “everybody” has learned about the great cost savings to be achieved by switching to LED lights, direct cost savings of over 50% with additional savings due to reducing load on AC and reducing O&M. LEDs can be used in so many situations, can be dimmed, and now fit in virtually every type of fixture or ballast.

Thus the temptation is just to go to the store and pick up a bunch of LEDs and begin to substitute. Sure you’ll save some cost. But that’s a big mistake and you can actually harm the productivity of your workers, the ability to do business by your tenants, and the sellability of product by the retailers in your buildings.

In fact, even if you are not changing to LEDs, it is important to review your building’s lighting, as the very way we work has changed, as we have gone from reading and writing on paper exclusively to the common use of computers and other screens. Screens supply some light. Thus overhead lighting needs (number of lumens) of office workers to function well have dropped somewhat. Over-lighting is a potential issue, which increases costs, and may adversely affect worker health, mood, and productivity.

In the “old” days of exclusive working with paper, the recommended lighting levels were as high as 1,000 luxs (1 lux = 1 lumen/sq. meter). However, the US General Services Administration (http://www.gsa.gov/portal/content/101308) now recommends levels such as 500 lux for open offices, 300 lux for conference rooms, and less in other areas.

Therefore, it is useful before and after changing a building’s lighting to perform a lighting study. Have light readings taken to determine whether you are over-lighting an area. It may be tempting to say after an LED upgrade “I don’t care if I over-light my areas. My electricity costs are now so low, I don’t mind over-lighting.” This is a mistake as over-lighting stresses employees, causes headaches and anxiety, and may interfere with sleep and circadian rhythms. In other words, it may affect productivity, which could cost your company more money than is saved by switching to LEDs.

If you find areas of over-lighting, do some de-lamping: remove some lamps to bring the light levels down to the recommended intensities. Not only will you improve the productivity of your workers and tenants, but you will save additional energy costs and O&M having fewer lights using electricity. But make sure you don’t overdo de-lamping.

Finally, take into consideration the time of day. During different times of day, sunlight may enter certain workspaces. During those times, allow the sunlight in. Workers work better under natural light. Either procure/use daylighting sensors to adjust the artificial light to the sunlight entering from outside or turn down or off certain banks of lights when the sun shines in. Again, make the effort not to over-light areas.

CCES has the experts to conduct lighting studies for you and to make determinations of what types and intensities of lights should be brought in to meet standards for different uses and security. We can recommend the right daylight sensors for different parts of your building and where to re-locate lighting to get not the most, but the best lighting for your tenants and workers, based on their job needs. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Last week, I gave a talk to an engineering society about sustainability, with the emphasis on energy conservation and greenhouse gas emission reductions. I discussed “The 9 Purely Business Reasons to Reduce Energy” (published earlier in this blog) to demonstrate the many purely common sense, financial reasons to invest in energy efficiency. Give credit to us engineers. A few people in the audience questioned the viability of these reasons and gave me a hard time. Although I emphasized the business value of reducing energy usage, these people were quick to point out that improving energy efficiency was no guarantee of cost savings; a strategy may be so expensive or not feasible such that it will not pay back the initial investment. This is true, and that’s why one needs to look individually at every building and situation and devise a host of potential strategies. Some will have a better ROI than others. And that’s a good reminder that “just going to Home Depot” to pick up some LEDs, does not guarantee savings (or proper lighting). We experienced engineers are needed.

My favorite example is a small business called Colonial Needle, a light industrial / warehouse / office 2-building complex in White Plains, NY. The buildings were built in the 1950’s and underwent essentially no changes since then, including having their original windows and boiler. Not only were their energy costs sky high, their workers were still uncomfortable; some were wearing parkas at their desks in the winter! Colonial Needle finally realized they had to upgrade and did so comprehensively. For example, they knew that there were cracks in many of the single-pane windows. While a window upgrade to double pane generally does not have a fast payback, it was critical for worker productivity and morale for wind not to blow onto people at their desks! Each building and situation is unique. It is important to bring in the right energy professional to lay out options and to look deeper into what the long-term costs and benefits are.

Another factor is to take advantage of incentives that exist for many energy efficiency projects. Governments – even in red states – are beginning to understand that incentives for private companies to implement energy efficiency projects is a productive way for a government to spend money. Some examples:

• Improved energy efficiency, by reducing a company’s expenses represents a boost for tax revenue and for creating new jobs, beneficial to any government.

• One or many buildings using less energy (more efficiently) also has health benefits. Less fuel combustion means reduced air pollution buildup and, therefore, reduced asthma and other respiratory diseases, meaning a happier and healthier population, using less government services.

• Using less energy in peak times reduces the stress on the energy delivery system. One apartment complex that switched from oil to natural gas (oil backup) noticed that the number of annual oil truck deliveries dropped from nearly 300 to two, through the narrow, complex streets of the neighborhood. Besides causing traffic jams, truck deliveries took workers away from other jobs, not to mention. So this change benefitted many.

• Reducing the amount of electricity used allows utilities to avoid or scale back the building of new or expanded power plants, transmission lines, and other necessary equipment and use existing infrastructure more effectively. This not only saves the utility much money and risk of potential failure, but also saves the consumers, too, as we all ultimately pay the bill.

This last point is a major reason why more and more utilities offer incentives to customers to use less energy. Yes, that sounds ironic – paying a bonus to customers to use less of the product they sell. But such incentives make sound sense given the alternative, multi-million or multi-billion dollar capital upgrade projects, which may or may not be fully funded and may or may not lead to unbridled success.

But back to you, our readers, who primarily work for companies and building owners and deal with a finite number of buildings and facilities. Why should your company invest in energy efficiency and how can you get others to push for this?

 The payback period for energy efficiency fell by over half when productivity and operational gains are estimated and brought into the calculations.

 Energy efficiency strategies can make buildings more comfortable, yielding healthier conditions for workers and residents. According to the International Energy Agency (IEA), for every $1 invested, energy efficiency provides up to $4 in benefits when the cost of medical care, lost work time and child care costs are considered.

 Energy efficiency strategies can attract new business, tourists, and investment dollars to the company or building. This is especially true in real estate, as energy efficiency can attract more potential renters (giving the owner the upper hand), the entertainment and health care industries, and for universities.

Companies, building owners and managers, governments, utilities, and yes, even engineers should stop thinking about energy efficiency as just another expense, and instead think of it as an investment to be studied and benefits maximized. No, not every energy efficiency project will pay back well. An experienced professional is needed to determine the most cost-effective projects. But so many opportunities in energy efficiency exist (growth in better systems/technology) to benefit nearly any company.

CCES has the experts to perform an energy audit to determine specific energy efficiency projects for your building or facility. We have the experience to quantify potential costs and long-term benefits, not only direct cost savings, but other business benefits, as well. Join the growing number of businesses who understand energy efficiency is a positive business investment with many short- and long-term benefits. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Marc Karell will participate in a free webinar on the topic of using the various local laws to substantially reduce your energy costs on Tuesday, June 30 at 2:00 pm. See EE Reports (www.EEReports.com) to learn more about and to register for the free webinar.

Over the last few years, New York City government has put into effect several new laws affecting energy usage of large (>50,000 sq. ft.) buildings. Local Law (LL) 84 requires such buildings to enter their energy usage data (electricity, gas, oil) into a database for public view. The building does not have to reduce energy use; just enter data annually. LL 87 requires a building to perform a thorough energy audit and retro-commissioning study once per decade. Other municipalities have passed or are considering passing similar “benchmarking” and minimum energy standard rules.

Many owners/managers approach compliance to any law as “checking off the boxes”, and then ignore what comes from it. But that is not a good way to think about it in this case. Complying with laws like these also provides you with information about your building to pinpoint energy upgrades to maximize your financial benefits.

First, collecting energy usage data per NYC LL 84 provides you with information on how your building stands compared to similar ones. Are you using more or less energy than others to keep warm or cool, for lighting, etc.? If you are using less energy, then congratulations, and go out and publicize this unassailable fact to attract more tenants. If you use more energy than similar buildings, then you have the impetus to know that you can do better. Plus, the exercise creates the data to pinpoint the likely areas to get improvement and to get the most bang for the buck in reductions.

The energy audits of NYC LL 87 require developing a list of energy conservation measures (ECMs), site-specific strategies to reduce energy usage and demand. Each one will result in direct cost savings to more than make up for the initial investment. Utility and NY State incentives can pay you some of the upfront costs! But note that many of these programs in NY are scheduled to end in 2016. So do not wait too long. For those concerned about accepting such subsidies, remember, in NY, that these come from a fund financed by you, the user, in your SBC charge in your utility bill. So you are merely taking back money you put into the system for such projects!

If finding available funds for the upfront costs of an ECM is difficult, there are a number of entities (private and public) that will loan you this money, knowing the fine ROI of energy projects. Terms may be arranged so that you pay back the principal and interest from your energy savings, giving you positive cash flow at all times.

LL 87 retro-commissioning is composed of meeting 25 different standards for equipment operation, such as checking for leaks, clogged filters, broken lights, etc. All deficiencies found during site inspections must be addressed. They are normally low or no-cost fixes. The importance of this is the assurance that your energy systems are operating properly. After spending perhaps hundreds of thousands of dollars on your HVAC, lights, etc., isn’t it smart to make sure they are operating as they are supposed to? To make sure you get your money’s worth?

But remember that besides potential significant cost savings on your electricity, gas, and oil bills, performing energy upgrades has other strong financial benefits:

• New energy technologies generally last longer than those replaced. Therefore, you need to purchase and have on hand fewer replacements (another cost savings) and you need less space to store backup items. In addition, these new technologies need to be serviced less often, freeing up your O&M staff to do other projects for your tenants. In particular, for lights, this means fewer trips up and down the ladder or cherry picker, saving time and reducing risks of an accident.

• A more energy efficient building attracts more and potentially a better quality of tenant, giving you the upper hand to set rents and conditions. Energy efficient buildings have a better re-sale value, as well.

• Better lighting and improved comfort result in a more productive staff, which you and your tenants can appreciate, and a better shopping experience, which your retail tenants will appreciate. For example, modern LED lights have less glare than many fluorescents that are replaced, resulting in less eye strain, fewer breaks needed, and a more productive staff. Proper lighting and comfort lead to a better experience for the shopper, which a retail tenant strives for.

So don’t view the NYC Local Laws for energy as just another law you have to comply with, but instead as something to smartly take advantage of to seize the many benefits of reducing your energy usage and energy costs which will only rise in the future. Take the information you get about your building and use it to maximize your financial gains.

Marc Karell, P.E., CEM, EBCP, is a Principal of Climate Change & Environmental Services, LLC, a technical firm that helps building owners and managers perform energy studies and upgrades to maximize financial and productivity benefits. CCES has the experience to help you save significant energy costs. Contact us at 914-584-6720 or at karell@CCESworld.com.

One problem many building managers face is heating or cooling a large, complex building with many zones and many diverse needs for temperature control. A technology called Variable Refrigerant Flow (VRF), popular in Europe and growing in the U.S., saves building managers money and aggravation compared to conventional HVAC systems.

Conventional HVAC systems are turned totally on for heating or cooling until not needed, then turned totally off. VRF differs in that it varies the flow rate of water or refrigerant being delivered via piping to the fan coil/air handling units of each zone from an outdoor unit, based on individual sensors / controls in each room. The basic outdoor unit is a pump that will either heat or cool the building, but will vary the flow depending on the changes needed. Some advanced systems allow heat recovery where captured wasted energy from one room can be used in another. It allows different parts of the building to be heated or cooled at the same time. Certain outdoor units can heat or cool up to 50 rooms.

VRF is most appropriate for buildings with complex heating/cooling zones or varied requirements, such as hospitals, schools, hotels, multi-family housing, retail complexes, and certain offices.

VRF typically reduces energy usage by over 30% compared to traditional HVAC equipment. It has lower installation, maintenance, and lifecycle costs than traditional HVAC equipment, it lighter in weight than chilled-water systems, reducing the load on a roof. VRF requires less duct space than conventional systems, improved the aesthetics of a building’s exterior, allowing repurposing of otherwise unusable space, removes the need for window AC units, and increasing design flexibility for contractors / installers. VRF systems are quieter, and have less opportunity for mold growth. It can be used with smart systems to deliver accurate reports on individual room / occupant energy usages, allowing more accurate charging of tenants.

One disadvantage of VRF is its initial high capital cost. However, given its energy savings, VRF should be a good long-term investment, and likely qualifies for energy incentives and low-cost financing. Another problem to note is the shortage of contractors experienced in installing and starting up such a system.

Thanks to EE Reports (www.EEReports.com) which provided information about VRF and is a source of much energy savings technology information.

CCES can help your building evaluate your energy usage and demand and recommend strategies and technologies that will save you significant cost, provide additional financial benefits, and improve building value and worker productivity. We can produce results for your buildings now. Contact us at 9140584-6720 or at karell@CCESworld.com.

President Obama signed the bipartisan Energy Savings and Industrial Competitiveness Act (ESICA or Shaheen-Portman) last week that will reduce energy use in commercial buildings and government offices. The law will help make the U.S. more energy efficient, increasing both our economic competitiveness and our energy security. None of the provisions of the bill will force the private sector to become more energy efficient, but will provide incentives and tools to help to help buildings do so.

Buildings

The new law strengthens national model building codes to make new homes and commercial buildings more energy efficient while working with states and private industry to make the code-writing process more transparent. It will also encourage private sector investment in building efficiency upgrades and renovations by creating a Commercial Building Energy Efficiency Financing Initiative to lessen the upfront payments building owners need to make to replace equipment with higher level energy efficient equipment instead of replacing in kind. The law also establishes Building Training and Research Assessment Centers at a number of universities across the nation to train young people in energy efficient technologies, building materials, and construction to enable them to set up their own businesses and help the private sector.

Real Estate

ESICA establishes a voluntary “Tenant Star” program, similar to the Energy Star label for appliances, for commercial buildings that reduce their energy consumption, making available energy information for businesses looking to lease space.

Manufacturers

ESICA directs the DOE to work closely with the private sector to encourage research, development and commercialization of innovative energy efficient technology and processes for industrial applications. It will provide improved means to incentivize manufacturers to reduce energy use and become more competitive through more energy efficient equipment. It establishes a new DOE program, SupplySTAR, to help make companies’ supply chains more efficient.

Federal Government

While the new law does not require a private building to be more efficient, it does require the federal government – the single largest energy user in the country — to adopt energy saving techniques for computers, saving energy and taxpayer dollars. It allows federal agencies to use existing funds to update plans for new federal buildings, using the most current building efficiency standards and it allows federal agencies to use ESCOs and UESCs to install electric and natural gas vehicle charging infrastructure, making it easier for agencies to use these types of vehicles.

Municipalities

The new law will provide guidance and information to municipalities who wish to amend their building codes and laws to encourage or mandate green or more energy efficient new building or renovations.

CCES has the technical and policy experts to help your building become more energy efficient, helping you maximize the financial benefits (direct reduction in energy costs, reduced O&M, smoother operations, etc.) and helping you get the full incentives you are entitled to. Contact us today at 914-584-6720 or at karell@CCESworld.com.