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Sustainability Case Study Reducing Operating Costs with Low Cost Improvements . Transwestern Sustainability Services Al Skodowski. Internal goals -mandates starting to drive decisions Cost reduction Market Distinction Legislation & Codes CO2 – Water Issues Green Leases
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Sustainability Case StudyReducing Operating Costs with Low Cost Improvements Transwestern Sustainability Services Al Skodowski
Internal goals -mandates starting to drive decisions Cost reduction Market Distinction Legislation & Codes CO2 – Water Issues Green Leases BOMA; Green Office Guide; etc. Chief Sustainability Officers Performance Contracting Trends in Sustainability
Transwestern Sustainability Services • Independent group within Transwestern • Focused on LEED certification of existing buildings • Skill sets are built around communicating with building managers and building engineers to provide and gather operational information and adopt green Standard Operating Procedure's
The Projects Average Cost for Silver = $0.12 - $0.15 per sqft Average Cost for Gold = $0.15 - $0.23 per sqft
Where do you start? NOT LEED • Start with EPA Energy Star Portfolio Manager • Easily identify how well a building or portfolio is performing compared to same store • Qualify how well a retrofit has performed versus designed savings estimate • Starting point for any USGBC – LEED for Existing Building Operations and Maintenance EB O & M) certification (now worth up to 15 points towards the 34 needed for EB certification READY…SET…GREEN: Tenant-focused sustainability program offered nationwide at Transwestern managed properties GREEN FACT: ENERGY STAR labeled air conditioning units use 20-40% less energy than standard systems. If all new homes were installed with ENERGY STAR units, we could save $100 million annually.
249 kBtu/ft2-yr 75 Hours/week 20 249 kBtu/ft2-yr 55 Hours/week 15 Highest Building Energy Use Lowest Energy Star Basics Number of Buildings Best Performers Worst Performers 25 75 1 Benchmark 50 100
100% “Natural Degradation” 78% Ongoing Commissioning Advantage Time 60% No Controls / Building NC Commissioning Operational Benchmark Unsupported degradation Traditional Preventive Maintenance Ongoing Commissioning Services Retro commissioning Total Energy Dollars
Park Place • Building STATISTICS • Energy Star ..Score: 88 (before 72) • Annual Water Savings: ..1,318000 Gals/year • Recycling Rate: ..of over 70% • Water Capture System net Storm Sewer Savings of ~$38,000 annually • Emissions Savings Upon Certification CO2: ..2,222,485 Pounds • Irrigation system uses no potable water • Total cost of $1,450,000 • Green Roof ~ $600,000 • Lease deal 11.5 years at $45.00
Summary of Facilities 2 million square feet * Most recent score
Silver Certification • SERVICES PROVIDED • Operational changes - New “green” cleaning supplies, building recycling program, integrated pest management, and improve water efficiency. • Energy Management System Annual Savings $24,000 $0.18 sqft Reduction Investment ~$35,000
Silver Certification • Motion Sensor installation • Investment: $58,057 • Return: $9,842 annually • Payback: 5.9 years • Water Treatment • Investment: $52,800 • Return: $13,720 annually • Payback: 3.8 years • Air Balancing • Investment: $6,000 • Return: $11,700 annually • Payback: 6.1 months • Commodes – Reduced Flow • Investment: $30,000 • Return: $13,400 annually • Payback: 2.24 years • Faucet Aerators • Investment: $215.00 • Return: $3,935 annually • Payback: 14.2 days • Variable Frequency Drives • Outside Air Fan VFDs • Investment: $50,000 • Return: $17,482 annually • Payback: 2.86 years • Lighting and Lighting Control • Investment:$15,000 • Return: $40,000 annually • Payback: 4.5 months Investment ~$210,000 Annual Return ~ $103,000
Silver Certification Operating Expense Comparison
Case Study: 1800 West Loop South Utility Performance Evaluation • Significant increase in occupancy beginning Summer 2008 • Utility rate increase in Summer 2008 • 23% Decrease in consumption per occupied square foot Sep/Oct 2008 vs. 2007 • Avoided costs of $38,000 Cost/KWh: $0.12 Cost/KWh: $0.15
Questions? Allan Skodowski Sr. Vice President & Managing Director Transwestern Sustainability Services 611 N Broadway, Ste 101 Milwaukee, WI 53202 (414) 937-5023 Allan.skodowski@transwestern.net