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Transforming Existing Buildings Into Sustainable Facilities
October 24, 2013
Laurie Gilmer P.E., CFM, SFP, LEED‐AP, CxA, CDT Facility Engineering Associates, P.C
The things you really need to know!
• The impact of Sustainable Facility Management
• Conservation and Reduction in difficult times
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2
3
4 5
6
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8
• The five-things you need to know
Agenda
Sustainability is the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs [Brundtland]
World Commission on Environment and Development: Our Common Future
– April 1987
Sustainability Defined
ECONOMIC
Triple Bottom
Line
Profit
People
Planet
People
Process
Place FM
Sustainable Facility Management is a process of integrating the people, place and business of an organization that optimizes economic, environmental, and social benefits of sustainability
Sustainability
Sustainable Facility Management
40% Energy Consumed 22% Residential 18% Commercial
39% CO2 Emissions 9.7% Water (2005)
Source: 2010 Buildings Energy Data Book
These buildings account for
The U.S. has 124.4 million residential and 4.9 million commercial buildings
Why are Existing Buildings Important?
Distribution of Floorspace by Principal Building Activity, 2003
Source: Energy Information Administration, 2003 Commercial Buildings Energy Consumption Survey. Released in 2006
Why are Existing Buildings Important?
70 Billion Square feet
That’s about $200 Billion in annual utility cost!
Buildings40%
Transportation28%
Industry32%
Data Source: 2007 DOE Building Energy Data Book
0% 5% 10% 15% 20% 25% 30%
Cooking, 2%
Computers, 3%
Refrigeration, 4%
Office Equipment, 6%
Ventilation, 6%
Water Heat, 7%
Cooling, 13%
Heating, 14%
Lights, 26%
Other, 13%
Commercial Buildings (18%)
The Energy Context
The Emissions Context
Source: ENERGY STAR
Industry Shift Toward Voluntary & Mandatory Performance Disclosure
Corporate Headquarters Model
* RS Means Square Foot Costs ** APPA Benchmarks *** IFMA Benchmarks #25 Headquarters Average
Impact: Sustainable Facility Management
Total Cost of Ownership
$50,000,000$150,000,000$250,000,000$350,000,000$450,000,000$550,000,000$650,000,000$750,000,000$850,000,000
0 4 8 12 16 20 24 28 32 36 40 44 48
Year
8 stories, 640,000 square feet Design & Construction Costs (CRV): $82,368,000* Capital Renewal: 2% of CRV** O&M Budget $5.69/sf*** Inflation: 3%
D&C: $82M
CR: $279M
O&M: $411M
Total: $772M
In Terms of Total Dollars . . . Total Cost of Ownership
Impact: Sustainable Facility Management
Savings in O&M and Capital Renewal . . .
Save 10% in O&M
D&C: $82M Total $ NPV
CR: $279M → $14M → $3.2M
O&M: $411M → $41M → $9.4M
Total: $772M → $55M → $12.6M
Save 5% in Cap. Renewal . . . A good reason to be green!
Savings
Total Cost of Ownership Impact: Sustainable Facility Management
In Terms of Total Dollars (Millions) . . .
$772
$55
$0 $2,000 $4,000 $6,000 $8,000
Building Cost
Building Savings
With modest operational and capital cost savings
Impact: Sustainable Facility Management
Typical design and construction costs account for only about 2% of an organization’s total cost to exist.
Life-Cycle Costs of a Facility
92%
6% 2%
Salaries of Occupants Cost of Operating and Maintaining Original Design and Construction
(Cotts, D.G., The Facility Management Handbook, Second Edition, 1999)
The Cost of Productivity Average annual cost for
Personnel: $300-600/sf
For facilities: $20/sf
For energy: $2.50/sf
The Value of FM Impact: Sustainable Facility Management
In Terms of Total Dollars (Millions) . . .
$772
$55
$6,950
$695
$0 $2,000 $4,000 $6,000 $8,000
Building Cost
Building Savings
People Cost
People Savings
Impact: Sustainable Facility Management
What about this?
We know this is possible
Leadership in Energy & Environmental Design (2000)
Energy Star (1992)
BRE Environmental Assessment Method
(1993)
GBCA Green Star (2003)
Japan Sustainable Building Consortium (2002)
HK- BEAM (1995)
Tools: Building Rating Systems
BREEAM LEED CASBEE Green Globes Green Star Green Mark Three Star SystemUK US Japan Canada Australia Singapore China
Building Management
Management Operations and mangement
Energy Use Energy Energy Energy Energy Energy Efficiency
Energy Savings
Health and well-being
Indoor Environmental
Quality
Indoor Environment
Indoor Environment
Indoor Environmental
Quality
Indoor Environmental
Quality
Indoor Environmental
Quality
PollutionEmissions and other impacts Emissions
Transportation Transportation
Land use and ecology Site
Outdoor environment on
siteSite
Land use and ecology
Environmental Protection
Land savings and outdoor
environment
MaterialsMaterials & Resources
Resources and Materials
Resources, building materials
and solid wasteMaterials Materials savings
Water Water Water Water WaterEfficiency
Water Savings
Innovation Innovation Other green features and innovations
Preference items
Quality of Service
Off-site environment
Project Management
Customers
New Construction
Existing
Buildings Operations & Maintenance
Commercial Interiors
Core & Shell
Development
Homes
LEED™ assesses the performance of buildings in the following areas: • sustainable sites • water efficiency • energy and atmosphere • materials and resources • indoor environmental quality • innovation and design process, regional priority
Tools: Building Rating Systems
Retail
Schools
Homes
Healthcare
Current LEED Buildings in the U.S. LEED Rating System Total
Buildings* Certified
Buildings* LEED-NC 28,794 1,876
LEED-EB 8,912 590
LEED-CI 8,238 1,019
LEED-C&S 5,784 151
LEED Schools 1,979 76
Healthcare 196 0
Neighborhood Development 348 39
*as of 7/5/13
Tools: Building Rating Systems
First: Know your organization!
Getting to know your facility
Environmental Resources, Pollution, Climate
Social People, Community, World
Economic Money, Money, Money
Getting to know your facility
Which initiatives are right for you?
Sustainable Sites Energy Efficiency Water Efficiency Indoor Environmental
Quality Materials & Resources Green Building Goals
Getting to know your facility
The things you really need to know!
• The impact of Sustainable Facility Management
• Conservation and Reduction in difficult times
1
2
3
4 5
6
7
8
• The five-things you need to know
Agenda
FM Triple
Bottom Line
Social
Environmental
Economic
Heavily skewed toward Economics
Is “Sustainable” Always the Best
Option?
The Link Between TBL and SFM
Initiative Intent Environmental
Benefit Economic
Benefit Social Benefit
Reflective Roof ↓ Heat Island Effect +/- +/- +/- Low H20 Fixtures ↓ Water Use + + +/- Commissioning ↓ Energy Use + + +
Reduced Mercury ↓ Hazardous Waste + - +/- Lighting Retrofit ↓ Energy Use + + +/- More Windows ↑ Daylighting - - +
Education ↑ Knowledge + +/- +
The Link Between TBL and SFM
1. Energy 2. Water 3. What goes in? 4. What comes out? 5. Indoor environment
five-things you need to know
The five things you need to know
1. Coal
2. Natural Gas
3. Oil
4. Uranium
The Elusive “Negawatt”
Energy Efficiency The 5th Fuel
#1 Energy
The Importance of Energy Efficiency Lighting Heating and Cooling Plug Loads
U.S. Energy Information Administration
#1 Energy
What’s It For? • Standardized Metric of Energy Performance • Compare Efficiency Across Country (Scale of 1-100)
• Normalize Energy Consumption
ENERGY STAR buildings:
• Use 35% less energy than average buildings
• Cost $0.54 less per square foot to operate when compared to an average building ($2.10/sf less than a below-average building)
• Prevent 25 billion pounds a year of greenhouse gas emissions, relative to typical facilities
#1 Energy
Identify under-performing buildings
Note: “CBECS” is the Energy Information Administration’s Commercial Building Energy Consumption Survey, http://www.eia.doe.gov/emeu/cbecs/contents.html
Technology Doesn't Always Equal Performance...
0%
25%
50%
75%
100%
ENERGY STAR 1999 - 2001 61.4 kBtu/ft2/yr
CBECS Bottom 25% 226.3 kBtu/ft2/yr
`
Technology does not guarantee efficiency
1
Worst Performers Best Performers
Num
ber
of B
uild
ings
25 50 75 90
Top performing buildings use 3 to 4 times less energy per ft2 than the worst performers.
Newer buildings are equally represented
across all quartiles.
Based on a sample of 4,000 buildings nationwide.
10
39% of buildings with a rating of 75 or better are less than 25 years old
42% of buildings with a rating between 25 and 74 are less than 25 years old
35% of buildings with a rating between 0 and 24 are less than 25 years old
EPA Performance Rating
New doesn’t always equal efficient
Lights
Process
HVAC
© Facility Engineering Associates 2012
Where should you concentrate?
#1 Energy
Domestic Process Irrigation
#2 Water
Light-powered touch-free faucets Dual flush valves Low-flow water closets &
urinals High efficiency and waterless
fixtures Flow restrictors and metering
at lavatories
Domestic Water Use
#2 Water
Consumables Durable goods (FF&E) Construction/TI Lamps/bulbs Food service
#3 What Goes In?
Set your photocopiers and printers to copy on both sides by default.
Transmit electronic files, not paper files when possible.
Implementing PC Power Management
can save up to $90 per PC annually
#3 What Goes In?
Durable goods and efficient work practices
Sustainable Purchasing
1988 www.ecologo.org/en/
1992 www.energystar.gov
1989 www.greenseal.org
Voluntary Energy Efficiency
Labeling Scheme http://www.emsd.gov.hk/
#3 What Goes In?
Verification Programs
What is Your Waste Stream and Why Should You Care About It? It is the overall flow of the wastes from the building to a landfill,
incinerator, or other disposal site.
•Reduce
•Reuse
•Recycle
#4 What Comes Out?
Custodial Staff Health & Safety Occupant health and productivity
-- Reduced absenteeism -- Higher productivity -- Improved recruiting -- Increased retention
#5 Indoor Environment
Typical design and construction costs account for only about 2% of an organization’s total cost to exist.
Life-Cycle Costs of a Facility
92%
6% 2%
Salaries of Occupants Cost of Operating and Maintaining Original Design and Construction
(Cotts, D.G., The Facility Management Handbook, Second Edition, 1999)
The Cost of Productivity Average annual cost for Personnel: $300-600/sf
For facilities: $20/sf
For energy: $2.50/sf
#5 Indoor Environment
The Value of Facility Management
Green products Sustainable equipment Dilution strategies Standard operating procedures Training Strategies to promote hand hygiene Guidelines for safe handling of chemicals (spill
prevention, etc.) Daytime cleaning Occupant feedback
Green Cleaning Programs
#5 Indoor Environment
The things you really need to know!
• The impact of Sustainable Facility Management
• Conservation and Reduction in difficult times
1
2
3
4 5
6
7
8
• The five-things you need to know
Agenda
How Long Will This Take? How Much Will It Cost?
Where does your money come from?
Conservation and Reduction Common Questions:
Saves Energy Reduces GHG Emissions
Saves Water Saves Money
Conservation and Reduction
What is included in a Capital Budget?
• Future cyclical repair and replacements • Measures that extend service life or retain the usable condition • Major activities with a maintenance cycle in excess of one year • Systems that have reached the end of their useful life
Capital Budget: Typically 2-4% Replacement Value
Capital Budget
Conservation and Reduction
What is included in an Operating Budget? • Service and routine maintenance • Utilities • Custodial services and cleaning • Pest control • Grounds care and landscaping • Environmental operations and record keeping • Waste hauling and waste diversion (recycling) • Security services
Conservation and Reduction
Operating Budget
Based on Initial Rating
1–49 New equipment & best practices
50–74 Best practices & equipment upgrades
75–100 Congratulations! Build on your success
Capital Budget
Operating Budget
Conservation and Reduction
How to Improve
Facility Operating Current Replacement Value Index: Typically 2 to 4%
Capital Budget: Typically 2-4% of Current Replacement Value
What happens when these numbers shrink?
Deferred Maintenance increases Facility Condition Index decreases
Preventive Maintenance decreases Corrective Maintenance increases
Conservation and Reduction
You need to know: Total cost of ownership You need to know how to: Reduce operating cost You need to be able to speak: Return on investment and Payback
Conservation and Reduction
Know Your Numbers!
Tools for SFM
• Strategy (TBL)
• Energy
• Water
• Carbon
• Finance “The first tool is to get educated” – Brenna Walraven
Use the Right Tools
© Facility Engineering Associates 2012
The Future of Buildings: Net-Zero and High Performance
Produce as much energy as they consume and significantly reduce GHGs
Double service life of building materials, products, and systems and minimize life cycle impacts
Halve the use of domestic water (to 50 gal/day/person), maximize water recycling and rainwater harvesting, and minimize storm water runoff
Achieve breakthrough improvements in indoor occupant health, productivity, and comfort
Enable design of new buildings and retrofits of existing buildings that over the life cycle:
1. Develop the enabling measurement science to achieve net-zero energy, sustainable high-performance building technologies
2. Develop net-zero energy building technologies and strategies 3. Develop the scientific and technical bases for significant reductions
in water use and improved rainwater retention. 4. Develop processes, protocols, and products for building materials
that minimize resource utilization, waste, and life cycle environmental impacts.
5. Develop the knowledge and associated energy efficiency technologies and practices needed to promote occupant health, comfort, and productivity.
6. Enable technology transfer for net-zero energy, high-performance green buildings.
“Transformational Advances” Needed
The Future of Buildings
2030 - any commercial building constructed
2040 - 50% of U.S. commercial building stock
2050 - all commercial buildings
The Net-Zero Energy Commercial Buildings Initiative
The Future of Buildings
Summary Remarks
Sustainability encompasses management of natural resources and monetary resources
Think long term and life cycle
Know your numbers, know your organization
The key to transforming our existing buildings is Sustainable Facility Management
