haze-enterprises

Assessment & planning for commercial real estate

Wed, 10 Jul 2024 21:11:20 GMT

Portfolio Assessment & Planning

This article is inspired by a transformative class I took with Professor Greg Norris at Harvard University. In this class, Professor Norris taught a revolutionary concept- the handprint ( Harvard , MIT ). Unlike the common phrase, “carbon footprint”, which measures the negative environmental impact, “the handprint” represents the positive changes we can make. It’s about being net positive—where our handprints, the good we do, outweigh our footprints, the harm we cause ( Harvard , MIT ).

Let’s examine a case study of an anonymous organization with a diverse building portfolio within higher education. In my experience, this project exemplifies an ideal setup for success.

1. The first step- Always, always collect data and analyze:

It was critical to understand the building size and use- the spatial dimensions and functional purposes. Also, we developed high-level assumptions about energy use from historical utility data, identified the sources of energy and associated greenhouse gases (carbon emissions). A crucial insight is the importance of distinguishing between constant factors, such as predictable energy consumers like IT servers, and variable factors, which include condition-based energy consumers like heating and cooling systems that depend on the weather and climate.

2. Impact Analysis and Prioritization

With the data in hand, we conducted an impact analysis to prioritize areas with the most significant potential for improvement. This included finding high energy consuming buildings and related systems such as HVAC, lighting, and other systems with substantial energy use. Daily operations that contributed to the energy footprint were also evaluated. At this stage, we had recognized the prime contributors by building and/or system type to the portfolios overall carbon footprints.

3. Benchmarking for Baseline Performance

Benchmarking against similar institutions and/or similar buildings within the portfolio provided a performance baseline, setting the stage for measurable improvements and goal setting.

4. Assessing Needs and Goals

The company assessed their energy and emissions reduction needs, aligning them with their long-term sustainability goals.

5. Strategy Identification

A review of current energy management strategies helped identify areas ready for enhancement.

6. Technology and Practice Ideation

A high-level list of energy-efficient technologies and practices was developed, focusing on innovation and feasibility. Short-term steam plant operations were aligned with long-term electrification, renewable energy production and utility-grid decarbonization projections. Here we reconsider the handprint theory to determine how net-zero to net-positive ambitions can be achieved through leveraging advanced technologies and best practices in this unique commercial real estate portfolio.

7. Regulatory Compliance and Strategy

Ensuring regulatory compliance, the company crafted a guidance strategy to navigate the complex landscape of environmental regulations, from energy reporting to carbon penalties.

8. Funding and Incentives

Last but not least, having searched and identified potential grants, tax incentives, and funding sources, the organization developed a high-level funding assessment to reduce capital improvement cost.

With a comprehensive “positive impact assessment” in place, the anonymous organization is now equipped to advance into the planning phase with confidence. This assessment serves as a blueprint for action, a strategic plan that not only addresses the current state but also paves the way for a net-positive future.

Stay tuned for more insights, and remember, your journey to sustainability starts with a single, well-informed step. Let’s make our handprints count!

Citations:

Norris, Gregory. “Handprint-Based NetPositive Assessment.” Sustainability and Health Initiative for NetPositive Enterprise , Harvard T.H. Chan School of Public Health, https://hwpi.harvard.edu/files/chge/files/handprint-based_netpositive_assessment.pdf .
Norris, Gregory. “An Introduction to Handprints and Handprinting.” Sustainability and Health Initiative for NetPositive Enterprise , MIT, https://shine.mit.edu/sites/default/files/Norris%202013%20An%20Introduction%20to%20Handprints%20and%20Handprinting_2.pdf .

The Integral Role of an Owners Energy Representative

Wed, 10 Jul 2024 11:40:25 GMT

Owners Energy Representative

If you’re a commercial real estate owner, have you considered how integral the role of an Owners Energy Representative or OER is to attain your energy objectives? I’d like to give you a high-level understanding. The OER serves as an advisor, offering a specialized skillset that goes beyond the responsibilities of a capital project manager, architect or commissioning agent.

Responsibilities and Added Value of an OER

An OER’s responsibilities range from conducting comprehensive energy audits to the execution of energy conservation measures. They act as a strategic liaison among the owner, design team, and construction personnel, ensuring that energy efficiency is seamlessly incorporated into the framework of the project. Responsibilities include:

Strategic Energy Planning: The OER is charged with crafting a comprehensive energy strategy that aligns with the facility’s sustainability goals. This involves conducting thorough energy audits and identifying key areas for improvement.
Technical Proficiency: The OER recommends high-impact solutions that lead to significant operational cost reductions. These may include the adoption of renewable energy sources and the implementation of energy-efficient technologies.
Operational Cost Reduction: Through meticulous energy optimization, OERs facilitate significant operational cost savings.
Compliance Assurance: They guarantee adherence to all pertinent energy regulations and standards.

Enhanced Quality Control

Any commercial real estate owner who has been a part of a construction project understands the value in quality control. This is another area where OERs demonstrate their expertise. Their specialized knowledge in energy efficiency adds to the oversight provided by commissioning agents. They spearhead stringent testing to confirm system performance, ensuring savings and dependability.

Collaboration with ESPCs and ESCOs

The employment of OERs is a common practice within Energy Savings Performance Contracts (ESPCs) and Energy Service Companies (ESCOs). In ESPCs, contractors pledge energy savings over a specified duration to finance the project’s expenses. ESCOs similarly benefit from OERs’ expertise to deliver projects that fulfill or surpass expectations. Here’s an example scenario: A facility collaborates with an ESPC and an ESCO, drawing on their specialized services to manage the project. The OER oversees this partnership, ensuring that the project stays on track to meet its energy-saving targets.

Leveraging Federal Support and Incentives

Initiatives towards sustainability goals and net-zero is supplemented by available federal grant funding and tax incentives. These financial incentives promote a collaborative endeavor across the design team to achieve ambitious energy targets. The OER plays a pivotal role in securing these resources, which are essential for achieving net-zero goals.

The role of an Owners Energy Representative is sometimes underestimated yet is critical in steering capital projects towards energy efficiency and sustainable building operations. By going above traditional project management processes, OERs ensure that each effort contributes meaningfully to the overarching objective of net-zero.

I hope this article clarifies the role of specialized consultants and team members in guiding a balanced and informed approach to achieving objectives such as net zero, and in establishing a financially sound capital investment model.

The Assurance Plan for Sustainable Capital Projects

Thu, 20 Jun 2024 13:19:58 GMT

Operational Planning

A critical question that needs to be addressed for building owners and organizations embarking on capital projects aimed at energy efficiency and sustainability: What is your “assurance plan”?

Capital projects are significant investments, often exceeding $1 million in initial costs, and while the design and construction phases may last up to 2 years, the operations extend far beyond. The longevity of these projects emphasizes the importance of an assurance plan that guarantees the building’s performance aligns with the initial energy efficiency goals.

The Challenge

Once the architects, engineers, and general contractors have fulfilled their roles, the baton is passed to facility management. But how can we ensure that the transition doesn’t lead to a decline in the building’s performance?

The Solution: A Comprehensive Assurance Plan

An effective assurance plan should encompass the following key components:

Knowledge Transfer: Ensure that the facility management team is thoroughly educated on the systems installed, their intended operation, and maintenance requirements.
Performance Monitoring: Implement a robust system to monitor energy consumption and system performance in real-time, allowing for prompt adjustments.
Preventive Maintenance: Develop a preventive maintenance schedule that aligns with the manufacturer’s recommendations and best practices in the industry.
Continuous Training: Invest in ongoing training for the facility management team to keep them updated on the latest energy management practices and technologies.
Financial Planning: Establish a reserve fund for future upgrades and replacements to avoid financial strain and ensure continuous operation at peak efficiency.
Stakeholder Engagement: As noted in last week's article, engage stakeholders, including occupants, to ensure behavioral changes complement new technologies, driving the building’s sustainability objectives.

The Impact

By implementing a comprehensive assurance plan, organizations can protect their investment and ensure that the building’s operations remain efficient, cost-effective, and sustainable over its lifetime. This proactive approach not only secures the expected ROI for new technologies and systems but also contributes to the broader goal of environmental stewardship.

The success of a capital project in achieving its energy efficiency and sustainability targets relies on the anticipation and diligence of its assurance plan. I’ll conclude with this, it’s not just about reaching the finish line; it’s about maintaining the pace for the marathon that follows.