Creating a Competitive Advantage with ASHRAE’s bEQ Advantage with ASHRAE s bEQ program

Colorado Springs, COSeptember 18 2014September 18, 2014

• Buildings don’t work as:work as:– IntendedD i d– Designed

– Constructed

• Most buildings will lose up to 30% oflose up to 30% of their energy efficiency in theefficiency in the first three years of operationoperation

Source: Bill Harrison, Past President of ASHRAE ‐Based upon a Texas A & M study

• So many buildings have been designed using CATNAP

• Historical solutions to the problem

• Who is to blame for the problem?

• Problem has always been viewed as a “people” problem

• This is a people‐based industry– Long‐term clients a must

– Profitability is linked to meeting expectations

• J. P. Kotter & J. L. Heskett, ‘Corporate Culture and 

• Revenues increase 4 times faster

• Job creation is 7 timesPerformance’, research sponsored by Harvard Business School

Job creation is 7 times faster

• Owner equity grows 12 times faster

Businesses that focus obsessi el on meetin

12 times faster• Profit performance is 

750 percent higherobsessively on meeting the needs of clients:

95% Cost of Ownership

5% C t f C t ti5% Cost of ConstructionSource: U.S. Federal Facilities Council Technical Report No. 142

• You have to do more with less

• You must manage and reduce energy costs

• Budgets will be tight udgets be t g tnext year

• There will be newThere will be new regulations/taxes

• Building certification becoming widespread• U S efforts:• U.S. efforts:

– EPA ENERGY STAR – Portfolio Manager benchmarkingbenchmarking

– DOE Commercial Building Energy Score (pilot phase)

– USGBC LEED Rating – Broader sustainability ratingGBI G Gl b B d t i bilit ti– GBI Green Globes – Broader sustainability rating

– BOMA 360 – Six O&M focused criteria (incl. energy)energy)

– State labeling and disclosure programs

Used with Permission: Institute for Market Transformation © 2013

• bEQ allows building owners to take the next step in measuring, controlling and managing energy costs

• Voluntary rating system that applies an easily understood scale to compare a building’s energy use with similar buildings in similar climate zones. 

• Accurately and consistently  compares y penergy consumption     

• Potential side by sidePotential side by side comparison • ‘As Designed’ (asset)As Designed  (asset)• ‘In Operation’ (operational) 

• Identifies gaps betweenIdentifies gaps between design and operation

• Identifies potential and measured energy use• Benchmarks a building’s energy performance• Insight into potential long‐term energy costs• Identification of energy efficiency measures• Identification of energy efficiency measures• Complements other rating programs

• Draws on successful features of other US and European building labeling & certifications

Austria England & Wales Greece Italy

d l f d i i• Energy model of new and existing buildings based on:• Mechanical• Envelope• Orientation

• Energy model uses standardized operational and occupancy variables 

• ASHRAE certified BEMP required or qProfessional Engineer (licensed in project location)

• Based upon “as‐built” conditions

• Evaluates the physical characteristics and systems 

• EUIAs‐Built– Source energy use of as‐built conditions gycomputed using standard occupancy and operational schedulesp

– Site‐source conversion based on typical conversion factorsconversion factors 

EUIAs‐BuiltEUIMedian

X 100bEQAs Designed  = 

• Expanded building types available with a table of Median/Baseline EUIs by Climate Zone from ASHRAE– 52 different building types

• Based on actual metered energy use via energy invoices

• Takes account of building structure/features and how it is operated

• Applicable for existing buildings• Applicable for new buildings after 12‐18• Applicable for new buildings after 12‐18 months of operation

• Conducted by an ASHRAE Certified BEAP or• Conducted by an ASHRAE Certified BEAP or Professional Engineer (licensed in project location)location)

• EUIMeasured– Metered energy use intensity

• EUIMedian– Median energy provided by ASHRAE, calculated gy p yto represent the median of the building stock for that building type, normalized for climate

100MeasuredEUIbEQ 100OperationalMedian

bEQEUI

• Four fire stations– FS – 3, 4, 10 & 15– Sarasota, Florida– Conditioned spaces included dormitories, kitchen, dining, offices, dayrooms etcdayrooms, etc.

– Unconditioned spaces included equipmentincluded equipment bays, storage, etc.

• DX cooling systems with electric reheat

• Solar thermal panels for domestic water heating (3 of 4 FS)

• Ventilation and e t at o a dexhaust complies with ASHRAE 62.1

• ASHRAE Level 1 Energy Audit – Preliminary energy‐use analysis 

(PEA) with review of utility bills(PEA) with review of utility bills, rates classes, and peak energy demand

– Space function analysis and energy end use summary

– Identification of low‐cost/no‐costIdentification of low cost/no cost energy improvement measures with estimated costs and savings

d d i l– Recommended capital improvements with estimated costs and savingsg

• ASHRAE Level 1 audit revealed:– Dehumidifier not working properlyg p p y– DX unit operating as a 100% OA unitAbandoned grey water system– Abandoned grey‐water system

– One toxic gas monitoring system missing

Scale RangeScale Range RatingRating DescriptionDescription

≤ 0 A+ Zero Net Energy

1‐25 A High Performance

26‐55 A‐ Very Efficient

56‐85 B Efficient

86‐115 C Average

116‐145 D Inefficient

>145 F Unsatisfactory

• FS‐10– LEED Silver– bEQ ‘A‐’

• FS – 4– LEED – not rated– bEQ ‘B’Q

• FS ‐3 and 15– LEED certified– LEED certified– bEQ ‘C’

• Energy Efficiency Measures (EEM):– Adjust room temperature and humidity j p ysettings for occupied/unoccupied

– Added thermostats and occupancyAdded thermostats and occupancy sensors for exhaust and supply fansZone AC units based upon space– Zone AC units based upon space use/occupancy

h i 00º– Reset hot water set points to 100ºF allowing greater efficiency of solar

• Fire Stations  FS – 3, 4 , 10 and 15 summary of 13 top EEMs:y p– EEMs recommended saved 119,225 kWhCost savings = $9 588 per year– Cost savings = $9,588 per year

– Repair costs = $39,300– Simple payback = 4.1 years– bEQ costs for all four = $7,820– Simple payback = 4.9 years

Savings  Original  Proposed Building Area (ft2) Proposed 

(kWh)Rating Rating

FS 3 7 191 45 000 C AFS‐3 7,191 45,000 C A‐

FS‐4 8,221 34,875 B A‐

FS‐10 13,345 11,250 A‐ A‐

FS 15 8 706 23 000 C AFS‐15 8,706 23,000 C A‐

• Leads to informed energy management (better decision making!)( g )

• Provides information on building’s IEQM t b d IEQ i di t t• Measurement‐based IEQ indicators to assure levels of service are maintained

• Illustrates benefits of equipment and system investmentsy

• Demonstrates corporate responsiblity

As Designed Rating:• Based on simulated, 

In Operation Rating:• Based on actual 

standardized energy use 

metered energy use • Influenced by

• Independent of operational and 

Influenced by operational and occupancy variables ope at o a a d

occupancy variables• Improved only by

occupa cy a ab es• Improved through upgrade of eitherImproved only by 

upgrading building fabric or systems

upgrade of either operating procedures orfabric or systems procedures or building fabric

• Consistent energy rating method for both new and existing buildings

• Requires certified or licensed professionals

• Allows smaller buildings o s s a e bu d gs(less than 5,000 ft2) 

• Full spectrum scaleFull spectrum scale incentivizes improvementimprovement

• How can you use bEQ to generate ato generate a competitive advantage?advantage?

“If you do not have a competitiveIf you do not have a competitive advantage, why compete?”

Jack WelchFormer CEO, GE

Some clients are naturally adept at making good decisions

• Low price• Speed • Quality• Unique strength• Unique strength• Proprietary system or 

killskill• Others?

• Be better than your competitorh• Know more than your competitor

• Have a deeper understanding of your a e a deepe u de sta d g o youclient’s expectationsK h t d ll• Know what you do well

• Plan everythingy g• Be great at identifying “low hanging fruit” (develop and use an “edge”)fruit  (develop and use an  edge )

• People respond to price signals

• People are “wired” such they treat loss differently than gain

• “Hit the ball where they ain’t”

Pee Wee Reese

• bEQ is a great way to “keep score”– Accurate consistent method of measuring energy consumption

• Hits the ball where they ain’t

• Motivates continuous improvement

• Identifies “low hanging fruit” (in operation)

• Focuses on building performance

• By focusing on building performance, owners pe o a ce, o e smake better decisions

• Problem goes from aProblem goes from a people problem to a situational problemsituational problem

• Target the right clients• Focus laser‐like on expectations

• Foster long‐termFoster long term relationships

• Emphasize building• Emphasize building performance

• Develop a competitive• Develop a competitive advantage

• www.buildingenergyquotient.org