USGBC's Mission To transform the way buildings and communities are designed, built and operated, enabling an environmentally and socially responsible, healthy, and prosperous environment that improves the quality of life.
USGBC's Vision Buildings and communities will regenerate and sustain the health and vitality of all life within a generation.
USGBC statement USGBC will pursue robust triple bottom line solutions that clarify and strengthen a healthy and dynamic balance between environmental, social and economic prosperity.
About the USGBC Non Profit Organization (18 + thousand) 79 local Chapters Nationwide 150,000 LEED Professionals USGBC Headquarters in Washington, DC Annual Revenue $46 million in 2007 Education, Registration & Certification, Accreditation, Conferences, Grants & Sponsors RP 4
USGBC GBCI LEED Credits Sustainable Sites Water Efficiency Energy & Atmosphere Materials & Resources Indoor Environmental Quality Locations & Linkages Awareness & Education Innovation in Design Regional Priority Points
MM 6
* As of August 2010 16,200
Why Was LEED Created? Use as a design guideline Recognize leaders Stimulate green competition Establish market value with recognizable national brand Raise consumer awareness Transform the marketplace
Why Was LEED Created? Facilitate positive results for the environment, occupant health and financial return Define green by providing a standard for measurement Prevent greenwashing Promote whole-building, integrated design processes
USGBC Membership Annual Revenue of Company Dictates Membership Fee National & Local Chapter Discounts on purchases People are Members of Local Chapter Companies are Members of National RP 17
USGBC Trademark and Logo Usage Only use EPS graphics provided by USGBC for logos. Captured or scanned images are not allowed. Acceptable sizes: 20%-380% of original or 50-200 pixels on web pages. The symbol after the first most prominent use. Include TM and SM symbols for marks owned by, but not yet registered to, the USGBC. Trademarks must include ownership information. Trademarks must refer to USGBC products not those of another organization or company. MM 18
Problems Check out Real Life LEED
Difficulties with LEED Time Money Effort Historically Complicated Time intensive Miscommunication Unclear goals Added effort Higher consulting fees Prices High as $5/ft for documentation High as $5 additional for commissioning
LEED EDGE TOOL
Lorax Pro
Certifications -or as they say it Accreditations LEED GA LEED AP BD+C, ID+C EBO&M, Homes, ND Certified Home Energy Rating System (HERS) rater BPI, CSBA, CGBP, CGPR, etc, etc 28
WHAT S NEXT? AB 32 Title 24 2008 AB 811 Cal Green Tiered System ASHRAE 2007 AB 1103 SF Green Building Ordinance Architecture 2030 ASHRAE 189 SF Recycling Ordinance Carbon Cap & Trade
14,000 Per Capita Electricity Consumption kwh/person 12,000 10,000 8,000 6,000 4,000 2,000 California United States - 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Buildings Don t Use Energy People Do: Hot Showers Cold Beers
LEED NC, CI Capital Expense LEED EB Operating Expense Event VS Process Affects the building Affects the users
Adobe Complex, San Jose California Description Cost Rebate Savings ROI Load Management $445,248 $205,437 $729,185 304% Lighting $300,701 $44,918 $155,616 61% Equipment $298,439 $122,575 $107,976 61% Annual Savings Monitor & Controls $39,472 $11,000 $12,001 42% Water Management $145,732 $5,396 $31,287 22% Solid Waste Management $0 $0 $137,380 immediate Recycled Office Supply $0 $0 $87,000 immediate Purchase Alterernative Energy $16,000 $0 $0 N/A LEED Consultant $105,000 $0 $0 N/A Regis/Certification $12,000 $0 $0 N/A Total $1,362,592 $389,326 $1,182,145 121%
Lesson Plan Understand Real Estate Finance Know Difference between NPV, ROI, Payback and IRR Comprehend how Green affects Value Comprehend Productivity and its affect on Value
Finance 101 Payback Cost/Return Ambiguous & Problematic Return on Investment A performance measure used to evaluate the efficiency of an investment (Gain-Initial)/Initial Expressed as a %
Finance 101 What is NPV & IRR? Net Present Value (NPV) total present value (PV) of a time series of cash flows Never pass up a negative NPV project Internal Rate of Return (IRR) Rate of Return when NPV is 0 Actual ROI
Project Reduced run-time for garage exhaust ans from 8760 hours to 2236 hours, All Estimated Cost Rebate Annual Savings Simple Payback (yr) ROI NPV ROI (Gaininvest)/i nvest ROI (Gaininvest)/i nvest Towers 100 48204 immediate 48204 $269,175.19 48104% 482140% Installed HVAC occupancy control in file storage rooms, Library & Apollo conference room. West Tower 2100 1113 1810 0.5 183 $9,121.35 39% 909% Installed automated faucets and toilet flush valves, All Towers 110358 24949 4.4 23 $39,038.91-77% 326% Reduced run-time for garage exhaust fans, East+West Towers. From 2236 ours annually to 871 hours annually, East+West Towers 100 50614 immediate 50614 $282,637.38 50514% 506240% Installed web based controls & rescheduled fountain pump for reduced run time. Was 112 hours per wk. Now 50 hrs per wk, West Tower 4400 925 5449 0.6 157 $27,202.41 45% 1317% ied in CBC lighting into GE Lighting Control System and placed on schedule. Previously, lights were on 24/7; Almaden Tower 100 1016 0.1 1016 $5,584.44 916% 10260% Installed filtration system to reduce disposable water bottles usage. All towers 146534 82746 1.8 56 $329,003.95-44% 665%
Project Reduced run-time for garage exhaust ans from 8760 hours to 2236 hours, All Estimated Cost Rebate Annual Savings Simple Payback (yr) ROI NPV ROI (Gaininvest)/i nvest ROI (Gaininvest)/i nvest Towers 100 48204 immediate 48204 $269,175.19 48104% 482140% Installed HVAC occupancy control in file storage rooms, Library & Apollo conference room. West Tower 2100 1113 1810 0.5 183 $9,121.35 39% 909% Installed automated faucets and toilet flush valves, All Towers 110358 24949 4.4 23 $39,038.91-77% 326% Reduced run-time for garage exhaust fans, East+West Towers. From 2236 ours annually to 871 hours annually, East+West Towers 100 50614 immediate 50614 $282,637.38 50514% 506240% Installed web based controls & rescheduled fountain pump for reduced run time. Was 112 hours per wk. Now 50 hrs per wk, West Tower 4400 925 5449 0.6 157 $27,202.41 45% 1317% ied in CBC lighting into GE Lighting Control System and placed on schedule. Previously, lights were on 24/7; Almaden Tower 100 1016 0.1 1016 $5,584.44 916% 10260% Installed filtration system to reduce disposable water bottles usage. All towers 146534 82746 1.8 56 $329,003.95-44% 665%
DCF Modeling Like this?
Time Value of Money
Time Value of Money
competing investments Period Year 1 Year 2 Year 3 Year 4 NPV (10%) Payback (yrs) Duck Project Goose Project Elephante Project $-20 $10 $10 $100 $ 72.49 2 Choose a Project $-20 $10 $10 $0 $ -2.64 2 $-20 $0 $20 $0 $ -3.47 2
competing investments Period Year 1 Year 2 Year 3 Year 4 NPV (10%) Payback (yrs) Duck Project Goose Project Elephante Project $-20 $10 $10 $100 $ 72.49 2 Anybody like Ducks? $-20 $10 $10 $0 $ -2.64 2 $-20 $0 $20 $0 $ -3.47 2
competing investments Period Year 1 Year 2 Year 3 Year 4 NPV (10%) Payback (yrs) Duck Project Goose Project Elephante Project $-20 $10 $10 $100 $ 72.49 2 $-20 $10 $10 $0 $ -2.64 2 $-20 $0 $20 $0 $ -3.47 2 Somebody s Fired
The Green 14 Starts with 4 Categories Income Market Rent Assumption Vacancy Absorption Time Stabilized Vacancy Tenant Retention (Rollover Percentage) Lag Vacancy Tenant Improvements Income Vacancy Expenses Risk
The Green 14 Expenses Utilities Repairs & Maintenance Management Marketing Promotions Insurance Property Taxes Risk Discount Rate Terminal Cap Rate Income Vacancy Expenses Risk
The Green 14 Case Study High Performance Features Old Normal Results High Performance Value 4% Higher On Average 2-8% Higher Risk of Obsolescence Risk of not designing to the New Normal
NOI Example How much would you pay right now If I gave you $10 every month for the next 2 years How about the next 20? NOI Cap Rate Building Value
NOI Example How much would you pay right now If I gave you $10 every month for the next 2 years How about the next 20? NOI Cap Rate NOI Cap Rate Building Value Building Value This is what we effect with Green Building, Energy Efficiency and Smart Decision Making
NOI expenses fall directly to BL Impact of Energy Savings on NOI NOI Increase 8% 7% 6% 5% 4% 3% 2% 1% 0% Energy Savings
Screen Shot
How to Measure Productivity? absenteeism hours worked tardiness safety rule violations number of grievances filed employee turnover
Law Firm Example Australia a law firm tracked the before and after sick days after a move New Space 5 green star rated building (high rating) found sick days reduced by 39% Overall dropped to.28 days per month.
Discussion Credits Energy Audit EA P1/C2 Commissioning Ventilation Compliance IEQ P1 Green Cleaning
Discussion Credits Commercial Interiors HVAC Credits Daylighting & Views Thermal Comfort Verification EBOM Thermal Comfort Monitoring
EBOM, NC or CI It s difficult and the reviewers are hard on compliance What are some strategies to help comply Identify Critical Zones Ensure all have been documented Square Footage comparison Can t completely rely on HVAC Engineer
Synergies Can anyone give me an example? What are some Synergistic Credits in LEED?