energy efficiency indicator -...

Energy Efficiency Indicator2009 Findings

May 6, 2009

Introduction and Welcome

2008 Johnson Controls Energy Efficiency Indicator2

C. David MyersPresident Building EfficiencyJohnson Controls

Clay NeslerVice President Global Energy & SustainabilityJohnson Controls

Don AlbingerVice PresidentRenewable Energy SolutionsJohnson Controls

Today’s Agenda Introducing Johnson Controls and IFMA

An Overview of the Energy Efficiency Indicator

Key Findings from 2009

Perspectives on energy efficiency from: Oak Ridge National LaboratoriesManpowerThe Empire State Building

Media Question & Answer

Johnson Controls Energy Efficiency Indicator3

About Johnson Controls We create smart environments that are safe, comfortable and sustainable

124-year-old global, multi-industrial company

3 Divisions: Building Efficiency, Automotive Experience & Power Solutions


About IFMAWorld’s largest and most widely recognized international. association for professional facility managers

Supporting over 19,500 members in 60 countries

125 chapters and 15 councils worldwide, manage more than 37 billion square feet of property and annually purchase more than $100 billion in products and services


Don YoungVice President of Communications,

International Facility Management Association (IFMA)

Value of workplace professionalsThis research recognizes the important role of workplace professionals in controlling operational costs related to energy consumption and making strategic capital investments in high-performing building technologies.

EEI report helps validate the initiatives facility managers are undertaking to reduce energy consumption, maximize efficiency and reduce their organizations’ carbon footprints to create a better, more sustainable workplace.


Key Questions in the EEI

What are the attitudes, priorities and concerns of the people at the front lines of energy management and energy efficiency?

What types of investments are they making?

What financial criteria do they use?

What trends are emerging?


Who We Surveyed


1422… Total number of respondents

0 50 100 150 200 250

Service industry

Finance, insurance, and banking

Manufacturing

Retail trade

Government and public administration

C-LevelVP or GMEnergy/Risk ManagerFacility ManagerOther

Respondents by Top 5 Vertical Markets and Organizational Level

Efficiency has never been more important

71%... Paying more attention to energy efficiency than last year

58%... Continue to say energy management is extremely or very important


Top Efficiency Measures

77% switched to energy efficient lighting

64% adjusted HVAC temperature controls

62% educated facilities operations staff

38% installed lighting sensors

10 Johnson Controls Energy Efficiency Indicator

11


12%

10%

45%

6%

1%

7%

14%

7%

0% 10% 20% 30% 40% 50%

Onsite renewable energy

Renewable power purchases

Energy efficiency in buildings

Energy efficiency in transportation

Use of alternative transportation fuels

Carbon emission offset purchases

No prioritization amongst strategies

Other/Don't know

What is your company's top strategy going forward to meet its carbon reduction goal?

Green Buildings & Renewables

38% seeking green building certification for new

construction projects, a 4% increase from last year

8% increase in organizations considering solar

electric and 7% increase in geothermal energy

57% would like to own the assets (as opposed to entering into a power purchase agreement)


Holding Back on Investments

10%...Drop in respondents expecting their organizations to make capital improvements in energy efficiency

6%...Drop in respondents expecting their organizations to make improvements in energy efficiency out of operating budgets


Holding Back on Investments


57% 56%

46%

64%61%

55%

40%

60%

80%

2007 2008 2009

capital expenditures operating expenditures

Percentage of participants planning to make energy efficiency investments over the next 12 months with....

15

Limited Funding

Johnson Controls Energy Efficiency Indicator

4%

4%

7%

10%

12%

21%

42%

0% 20% 40% 60%

Buy-in from senior leaders

Other (specify)

Technical expertise

Landlord/tenant split incentives

Dedicated attention, ownership

Payback/ROI

Capital availability

Top Barrier to Achieving Energy Efficiency

3.5Average maximum payback period for energy efficiency

Nearly 50% require less than a 3 year payback

Uncertainty?

-60% …. +100%Variation in expectations for year-on-year change in energy prices;

those that expect a price rise expect an average increase of 14%

51% see significant legislation within 2 years as extremely or very

likely, a 12% increase from last year

79% view incentives as highly influential in their purchase decisions,

a 4% increase from last year


EEI Observations & Conclusions

Increasing interest in energy efficiency Becoming more visible and important across markets and organizations

Tempered investment levelsDriven by uncertainty in the economy, government policy, and energy prices

Demand for efficiency will surgeReducing uncertainty and aligning incentives will drive significant investment in energy efficiency


For More Complete EEI Results Go to johnsoncontrols.com media press kits BE


Jimmy Stone, Oak Ridge Nat’l. Labs


• Nation’s largest concentrationof open source materials research

• World’s most intense pulsed neutron sourceand a world-class research reactor

• $1.36B budget• 4,400 employees• 3,900 research

guests annually• $500 million invested

in modernization• 1 million ft2 LEED-

certified campus

• World’s most powerful open scientific computing facility

• Nation’s most diverse energy portfolio

• Managing the billion-dollar U.S. ITER project

ORNL is DOE’s largest scienceand energy laboratory

Natural gas condensing boilers (98% efficient)

Daylighting and reflective roof

Solar lighting

We incorporate energy efficiency into the design of our facilities

Building management

systems

Walking trail Quadrangle area

Pond cleanup andwildlife management

Nativelandscaping

Sustainable landscaping contributes to a vibrant campus

We consider a variety of conditions

High reflective albedo concrete to reduce heat islands

Pervious pavement and drain system in visitor parking area

Downlighting systems to reduce night sky illumination

Our computational facilities are world leading in speed and energy efficiency

Computing speed: 1.64 petaflops

Power usage effectiveness: 1.3

Peak performance 1.645 petaflopsSystem memory 362 terabytesDisk space 10.7 petabytesDisk bandwidth 240+ gigabytes/secondInterconnect bandwidth 532 terabytes/second

We are adding solar power to our energy mix

51.25-kWp solar array installation

Moving Building 3147 to net zero energy

We will continue to build on our sustainable practices

To date we have added 33% more area to ORNL with only a 5% energy change

We now have 1M ft2 of green building space

We are on track to meet or exceed our DOE TEAM commitments

Reduce fossil fuel use by >85%

Reduce water use by 170M gallons per year

Reduce energy intensity by 50%

Implement 100% advanced electrical metering

Provide 21% of energy from renewable sources

We are transforming our West Campus with sustainable techniques

27 Managed by UT-Battellefor the U.S. Department of Energy JCI_0904

Jennifer Dettman, Manpower


Strategic Sourcing and Real Estate

ManpowerSustainable Initiatives & Energy Efficiency


Manpower HQ – Sustainable Construction

• Accomplished LEED Gold certification without adding to budget

• The water-efficient plumbing fixtures reduce our usage by 41%

• More than 10% of the building materials contain recycled elements

• More than 20% of the materials (by cost) were manufactured within a 500 mile radius

• More than 50% of the wood used on site was harvested from rapidly renewable forests and contains no formaldehydes

• Manpower’s building comes from 30.5% recycled material

• Indoor air quality is improved by the fact that the materials contain organic compounds.


Manpower HQ – Sustainable Construction

• Workspaces have diffusers that employees can adjust to increase/decrease airflow in their area.

• Building constructed on a “brownfield” site. It is preferable to develop on these sites, rather than "greenfield" or previously undeveloped sites

• Bicycle storage racks and changing rooms promote biking to work

• Manpower world HQ does not use chemical compounds chlorofluorocarbons (CFCs) or Hydrochlorofluorocarbons (HCFCs), which have been known to damage the ozone layer

• Construction crews used low-emitting adhesives, sealants, paints, carpets, furniture, and composite wood to improve indoor environmental quality.


Manpower HQ – Ongoing Initiatives

• Computers & Lighting: Lights are turned off at 6:30 pm; on at 6:30 am. A natural light sensor dims the two outer rows of lights during the day, if it is bright enough outside. Light sensors in conference and break rooms turn off lights after 5 minutes if no movement. To reduce light pollution, down lights installed throughout the HQ. Daylight and views are provided to more than 90% of the space in the building.

• Paper, printing, copying: No colored copies unless for a client. Double-sided printing. Recycled paper for all our copying purposes. 100% shred policy. Shredding company recycles all paper. All printers and copiers are ENERGY STAR. Printers go into shutdown mode when not in use.

• Recycling: We encourage recycling of aluminum cans, plastic and glass bottles. Each break room and cafeteria has a container for recyclables. All cardboard and paper is recycled.


Manpower HQ – Ongoing Initiatives

• Heating / cooling: Goes into an unoccupied mode daily at 6:00 pm. The building is in an occupied mode for 62.5 hours during a normal work week and 8 hours on the weekend.

• Vending / hospitality: Biodegradable to-go containers are used in the Point. Eliminated Styrofoam cups. Employees use their own cups. Break rooms have visitor ceramic coffee cups.

• Bathrooms: Paper towels and roll paper towels made with recycled paper used in bathrooms. Water-efficient plumbing fixtures in bathrooms reduces usage by 41%.

Tim Clancy, Empire State Building


Empire State Building Case Study Cost-Effective Greenhouse Gas Reductions via Whole-Building Retrofits

37

Prior to 2008, the Empire State Building’s performance was average compared to most U.S. office buildings.

Annual utility costs: • $11 million ($4/sq. ft.)

Annual CO2 emissions: • 25,000 metric tons

Annual energy use: • 88 thousand Btu/sq. ft.

Peak electric demand: • 9.5 MW (3.8 W/sq. ft.)

MOTIVATIONReduce greenhouse gas emissions. Create competitive advantage

8 interactive retrofit measures designed to reduce loads in base building andtenant spaces prior to expensive new equipment or controls retrofits.

WHOLE SYSTEMS APPROACHTake the right steps in the right order

Reduce Loads

Use Efficient Technology

Provide Controls

38

9%6% 5% 5% 5% 3% 3% 2%

0

100

200

300

Annu

al En

ergy

Use

(Milli

on B

tu/ye

ar)

Annual Energy Savings by Measure

8 KEY MEASURESranging from base building retrofits to tenant engagement

38% TotalSavings

39

WINDOWS: Remanufacture existing insulated glass (IG) within the Empire State Building’s approximately 6,500 double-hung windows to include suspended coated film and gas fill.

KEY MEASURESSome examples

40

41

RADIATIVE BARRIER: Install more than six-thousand insulated reflective barriers behind radiator units located on the perimeter of the building.


CHILLER PLANT RETROFIT: The chiller plant retrofit project includes the retrofit of four industrial electric chillers in addition to upgrades to controls, variable speed drives, and primary loop bypasses.


42

OUTCOMES

• 38% overall energy use reduction

• $4M annual energy spend savings

• 33% cooling load reduction

• Capital budget optimization resulting in $17M savings and 3.1 year payback

• 105,000 metric tons GHG reduction over 15 years

• Energy Star 90 rating (90% percentile)

• LEED “Gold” certification target

For more information, please visit www.esbsustainability.com 43

Media Q & A

44

Appendix


Who we surveyed


0 50 100 150 200 250 300

Agriculture, forestryCommunications

ConstructionEducation K-12

Higher educationFinance and insurance

GovernmentHealthcareHospitality

ManufacturingReal estateRetail trade

Service industryTransportation and logistics

Utility and sanitationWholesale trade

OtherConsumer products

Life sciencesOil and gas

C-LevelVP or GMEnergy ManagerFacility ManagerOther

Respondents, by industry

Who we surveyed


Comms

Construction

K-12 EducationHigher education

Finance, insurance,and banking

GovernmentHealthcareHospitality

Manufacturing

Real estate

Retail trade

Service industry

Transportation and logistics

Utility andsanitation services

Wholesaletrade

Other

Consumer goodsLife sciencesOil and

gas0%

5%

10%

15%

20%

25%

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

Frac

tion

of S

urve

y R

espo

nden

ts (%

)

Average Facility Area for which Responsible (square feet)

Survey Respondents, by Industry

Bubble Size = Average Revenue (million US$)

$1

49



23% 30% 32%

39%42% 39%

33%24% 25%

0%

20%

40%

60%

80%

100%

2007 2008 2009

Don't know

A lot less

A little less

About the same

A little more

A lot more

Compared to 12 months ago, how much attention is your company/organization paying

to energy efficiency now?

15% 20% 19%

36%37% 39%

38%35% 33%

0%

20%

40%

60%

80%

100%

2007 2008 2009

Not at all important

Not very important

Somewhat important

Very important

Extremely important

How important is energy management to your company/organization?

50

When tackling climate, leaders choosing efficiency first


0% 10% 20% 30% 40% 50% 60%

Onsite renewable energy

Renewable power purchases

Energy efficiency in buildings

Energy efficiency in transportation

Use of alternative transportation fuels

Carbon emission offset purchases

No prioritization amongst strategies

Other/Don't know

Overall

C-Level/VPs

Facility/Energy Manager

What is your company's top strategy going forward to meet its carbon reduction goal?

51

Efficiency and environment both important

77%88% 93%

18%10% 6%

5% 2% 2%

0%

20%

40%

60%

80%

100%

2007 2008 2009

Don't know

No

Yes

Is energy efficiency a priority in your current or planned construction or retrofit projects?

Cost the greater motivation, but environment important too

6% 6% 7%

24% 20% 21%

22%21% 20%

35%36% 37%

7% 10% 8%5% 5% 5%1% 1% 1%

0%

20%

40%

60%

80%

100%

2007 2008 2009

100% for environmental

Mostly for environmental

Somewhat more environmental

50% cost/50% environmental

Somewhat more cost savings

Mostly for cost savings

100% for cost savings

Relative influence of cost savings vs.environmental responsibility

52

Seeking certification or green elements more often

Green building goals


34% 38%

48% 45%

12% 14%5% 3%

0%

20%

40%

60%

80%

100%

2007 2008 2009

don't know

no goal for green buildings

green elements, but not certified

certified to a recognized green standard

What are the goals for your new construction projects with respect to green buildings?

20% 17%

59% 64%

18% 16%

3% 3%

0%

20%

40%

60%

80%

100%

2007 2008 2009

don't know

no goal for green buildings

green elements, but not certified

certified to a recognized green standard

What are the goals for your retrofit projects with respect to green buildings?

53

Do you expect to make energy efficiency improvements over the next 12 months...

But planned investment is declining


57% 56%46%

26% 23%30%

17% 21% 24%

0%

20%

40%

60%

80%

100%

2007 2008 2009

Don't know No Yes

with capital expenditures?

64% 61% 55%

21% 18% 21%

16% 21% 24%

0%

20%

40%

60%

80%

100%

2007 2008 2009

Don't know No Yes

with operating expenditures?

54

Investing a smaller fraction of their facilities capital budgets

But planned investment is declining


0%

5%

10%

15%

20%

25%

30%

Less than 1%

1% to 4%

5% to 9%

10% to 14%

15% to 19%

20% to 24%

25% to 30%

> 30% Don't know

2007

2008

2009

n = 712

n = 636

n = 651

What percentage of your company's/organization's facilities-related capital budget do you expect to see invested in energy efficiency improvements over the next 12 months?

55

Doing less across the board

and reported action is also declining


0% 20% 40% 60% 80% 100%

Switched to energy efficient lightingAdjusted controls to reduce heating/AC time

Educated facilities operations staffInstalled lighting sensors

Replaced inefficient equipment before end of useful lifeIncreased frequency of monitoring consumption

Installed or adjusted lighting timersIncreased preventive maintenance schedules

Upgraded existing building management systemIncreased building insulation

Attended or sent staff to energy seminarsInstalled energy-saving glass in windowsInstalled variable speed/frequency drives

Re-roofed with white roof coveringInstalled a building management system

Hired energy consultantRe-commissioned building systems and equipment

Hired energy manager

2007

2008

2009

Which measures has your company adopted to improve energy efficiency/reduce spend?

56

Wide divergence in expectations for energy prices; For those expecting a rise, average is 14%

Energy price uncertainty


79% 80%60%

3% 4%

9%

18% 16%31%

0%

20%

40%

60%

80%

100%

2007 2008 2009

not change significantly

decrease

increase

Do you believe the price of the energy your facilities use will increase, decrease, or not

change significantly over the next 12 months?

16% 13% 11%

24%19% 15%

18%19%

12%

13% 21%

17%

0%

20%

40%

60%

80%

100%

2007 2008 2009

Don't know

More than 40%

21%-40%

11%-20%

6%-10%

1%-5%

By what percentage do you anticipate that the combined price of the energy your facilities use

will increase over the next 12 months?

13.3% 13.8% 13.8% mean

57

Expecting more sticks and carrots for investing in efficiency

Regulatory uncertainty


37% 34%

28% 35%

11%16%

0%

20%

40%

60%

80%

100%

2007 2008 2009

Extremely likely

Very likely

Somewhat likely

How likely is significant legislation mandating energy efficiency and/or carbon reduction

within the next 2 years?

76%85%

12% 13%

26% 30%

37%36%

14% 12%8% 5%

0%

20%

40%

60%

80%

100%

2007 2008 2009

Don't know

Not at all influential

Not very influential

Somewhat influential

Very influential

Extremely influential

How influential are incentives offered by utilitiesor governments in your company's energy

efficiency decisions?

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