Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITW
Fed lcc-2010-green buildings
1. April 6 & 7, 2010, Toronto
LIFE CYCLE COSTING FOR THE PLANNING, DESIGN, CONSTRUCTION
AND OPERATION OF INTELLIGENT AND GREEN BUILDINGS
David Katz, MBA, BA
Sustainable Resources Management Inc.
Tel: 416 - 493 - 9232
Fax: 416 - 493- 5366
Email: dkatz@sustainable.on.ca
Building Intelligence Quotient Consortium
Email: dkatz@building-iq.com
3/17/2010 1
2. AGENDA
• Review the LCC issues for GREEN and Intelligent Buildings
• Examples of applying LCC to Green Building options
• Other life cycle environmental attributes covered under Life
cycle analysis
• Example of LCC for intelligent building choices
• Funding for the energy investments
• Associations and agencies that have programs to help pay for
the investments especially if they provide life cycle benefits.
Review your interests and share info on any projects and
challenges of applying life cycle costs under budgetary restraint
3/17/2010 2
3. Intelligent and Green Building
Investments
Typical problems that LCC can resolve:
Having lower life cycle costs provides the
incentive to overcome the lower first cost or
budgetary restrictions.
Building valuations that look at the revenues and
the operating costs are improved by having the
lower operating costs of better facilities.
Making repairs to existing equipment versus
advancing the purchase of new better
performing equipment
3/17/2010 3
4. Application to design and construction process
LCC analysis has many applications in the capital
asset, buildings and infrastructure projects that use
the design and construction process. Choosing the
appropriate materials and costing out the operating
and maintenance cost of different alternatives
provides the design and construction professional
the ability to include the owner’s financial criteria as
part of the process.
3/17/2010 4
5. EVALUATING AND PRESENTING THE RESULTS
Evaluation approaches
Total present value
Net present value
Simple payback
True payback
Equivalent uniform annual cost
Rate of return
KWH savings/investment dollar
1. Savings/benefit to investment ratio
2. Graphic analysis
3/17/2010 5
6. How do Intelligent and GREEN
buildings compliment each other?
Using same Life Cycle Cost principles for Insulating Glass
Alternatives
Energy Modeling – LEED and Green Globes
H V A C Equipment and Building Automation Impacts
Energy Price Inflation and Demand Response Programs
3/17/2010 6
7. Green Building Perspective
• Energy – Efficiency - Metering - Onsite Emergency & Renewable generation
– GridWise capable - Demand Response ready – Net Zero
• Water – Efficiency – Metering – Treatment – Cleaning- Landscaping
• Environmental Management – Storage Tanks - Mold – Maintenance – Operations
– Emergency Response - Training
• Indoor Environment – Daylighting – CO2 and CO monitoring
– IAQ Controls – Filters
• Emissions, Effluent and Other Impacts on the Environment
Noise – NOX – SO2 – Chemicals – Transportation – Heat Island Roofs
3/17/2010 7
12. Multi-Residential Building Service Life
Approximate design and pre-repair service life of the building
elements
Emergency Power
Conclusions:
Lighting
First costs and rent revenues are
Power Supply & Distribution only part of the Life Cycle
Plumbing Cost Story.
Drainage When all the repair items are
Domestic Water Systems totaled they may be as
much as the cost of the
Ventilation
original building.
Heating and Cooling
Roofs
Exterior Doors
Windows
Exterior Walls
Building Framing
Balconies
Pre-Repair Service Life (yrs)
Garage
Total Design Life to
Site Structures Replacement (yrs)
0 10 20 30 40 50 60 70 80
Based on High-Rise Apartment Repair Age of the building
Needs Assessment CMHC 1998
14. Conventional Cost Analysis
Average Payback Period (PP) and Return on
Investment (ROI) on single technology products.
(Source: Energy Cost Savings Council)
16. New Building Design
LCC and Sustainable Design Technology
An LCC assessment Typical Sustainable
can be used to assess Technology Applications:
options concerning site
Green Roofs
design, and material
and equipment Greywater recycling
selection to improve
overall building energy Photovoltaics
efficiency. Ground source heat pumps
Natural ventilation
3/17/2010 16
17. Sustainable Ecosystems
Appropriate Site Selection
Land that is already municipally serviced or has
previously been built upon should be favoured for
development over previously undeveloped areas to
enhance local ecology and preserved ecologically
sensitive areas.
Natural Corridors
When linked to natural areas, community green spaces
can provide valuable wildlife habitat and migration
pathways. Site design should encourage
interconnected natural areas and wildlife corridors.
Light Pollution Reduction Natural corridor and Riparian Zone
Minimizing outdoor lighting, without compromising
safety, can significantly reduce environmental threats to
nocturnal wildlife species.
Native Species Planting
Using plants that are native to a site reduces irrigation,
lowers pesticide and fertilizer use, and cuts Native plant species – Bullrushes, Canadian Goldenrod, and Switchgrass
maintenance costs. Site design should ensure 75% of
plantings are native.
Roadway Naturalization
Roadway edges and easements can support plantings
that provide habitat for natural corridors and can be
designed to reflect topographical and environmental
conditions.
ECD Energy and Environment Canada Ltd. Brownfield at mouth of the Keating Channel, Toronto, ON
18. Sustainable Energy Sources
Microclimatic Design
Building design that maximizes solar access in winter for Wind turbine at the Canadian National Exhibition, Toronto, ON
passive solar heat gain and shades windows in summer;
controls wind and snow exposure; insulates against
energy loss with green roofs of earth shelters, and
promotes green roofs reduces energy consumption,
Passive Solar Heating
Buildings with sufficient southern exposure can capture
sunlight in winter and release it as heat, reducing energy Photovoltaic curtain
costs. In the summer, trees, window overhangs and wall spandrels
sunshades block sunlight, keeping the building cool.
Natural or Hybrid Ventilation
Buildings may be ventilated and cooled passively if
designed to take advantage of temperature/pressure
differentials inside and outside the building, thereby
creating cross-ventilation. Natural ventilation can be Photovoltaic
combined with traditional systems in a hybrid design. bus shelter
Solar-Powered Street Furniture
Signs, bus shelters, street lights, and parking meters can
easily function off-grid with a small solar array.
Community-Based Energy Generation Photovoltaic light
Renewable energy comes from non-fossil fuel based South-facing
sources, like the sun, wind, water or earth. Governments, housing, Milton
utilities and individuals should consider these sources Vegetated "green" roof,
Keynes, UK
both for their environmental sustainability and their Mountain Equipment Co-op,
stable, long-term costs. Toronto, ON
ECD Energy and Environment Canada Ltd.
19. Sustainable Resource Use
Eco-Industrial Synergies
One company’s waste may be another company’s resource. Encouraging
regional economic exchange of by-products and energy leads to increased
energy efficiency, reduces pollution, decreases waste volumes, and creates
new market opportunities.
Adaptive Re-Use of Existing Buildings
New buildings consume approximately 50% of all materials produced. Re-
using existing structures, or salvaging their materials (such as brick, steel,
timber, doors, fixtures, etc) conserves large quantities of resources and
helps to preserve existing urban/cultural infrastructure.
Recycled Material Use
Tires, concrete, asphalt, fly-ash, carpet, ceiling tiles, and metal products can
all be recycled for use in urban infrastructure such as roads. Materials in
open spaces, such as playground equipment and surfaces, benches, tables,
bike racks and signs can be recycled, recyclable or re-usable.
Gooderham and Worts Distillery District, Toronto, ON
Sustainable Material Use
The life cycles (or cradle-to-grave environmental effects) of materials should Mountain Equipment
be considered in their selection. Variations in the ways concrete, steel, Co-op, Toronto, ON.
Structure consists of
timber, carpet, etc. are produced, materially composed, used, and disposed salvaged timbers and
of strongly affect their environmental impact. fly-ash concrete.
On-site Composting and Recycling
Niagara Region has a waste diversion goal of 65% by 2012. For this goal to
be realized, areas for the handling, storage and separation of recyclables
should be commonplace, and composting should be a priority where food
waste is being produced.
ECD Energy and Environment Canada Ltd.
20. Sustainable Transportation
Improved Building Access
The energy needed to transport goods and for commuting to
building is often equal to the amount of energy needed to operate
the building. To reduce energy consumption, access routes for
goods should be optimized and walking distances to public transit
should be shortened.
Pedestrian and Bicycle Traffic
Walkable and bikeable communities expand transportation
options, diversify neighbourhoods, and reduce reliance on
automobiles. Foot and bike paths, denser urban fabric, reduced
auto speeds, and sheltered bicycle parking should be a priority.
Alternative Parking Arrangements
The minimum number of parking spaces required for a
development is determined by the peak demand. This can be
excessive in some circumstances and options such as parking in
lieu and parking on alternative sites may be more desirable.
Designated carpool lot
Carpooling
Shared vehicle transportation reduces automobile usage and Bike lanes and bike storage facility
congestion. Convenient pick-ups areas and a voluntary database
of occupants’ postal codes help to promote carpooling.
Alternative Fuel Re-Fueling Stations
Public interest in vehicles fuelled by alternative fuels (such as
electricity, natural gas, ethanol and biodiesel) is increasing, but
these vehicles need conveniently located re-fuelling stations to Hydrogen re-fuelling station,
grow in number. Canadian National Exhibition,
Toronto, ON
ECD Energy and Environment Canada Ltd.
21. Sustainable Water & Wastewater Services
Stormwater Management
Site design should focus on increasing ground
infiltration of water and reducing quantity and off-site
treatment of run-off. Practices include minimizing
impermeable paved surfaces, storing water in
catchment systems, increasing vegetation, and
creating retention ponds and infiltration basins. Bioswale, Water Lving Machine wastewater facility, Nova
Pollution Control Lab, Scotia
Portland, Oregon
Bioswale Design
Grassed or vegetated drainage channels, an
alternative to traditional curb and gutter stormwater
management, retain water and break down road
contaminants. Planters
Impermeable
Paving
Riparian Permeable
Snow Pile Placement Zone Bioswale Paving
Snow piles should be placed away from drainage
courses and storm drain inlets to diminish impact of
salts and other toxins on stream courses.
Water
Table
Riparian Zone Protection
Vegetated transition areas between a body of water
and upland area control erosion, filter run-off, and
provide animal habitat.
Innovative Wastewater Treatment
Grey-water recycling, composting toilets, constructed
wetlands and Living Machines can reduce overall Storm
water consumption and reduce BOD content in Stream Sewer
wastewater to levels lower than those produced
through conventional treatment.
Desirable and undesirable stormwater
management practices
ECD Energy and Environment Canada Ltd.
22. Sample LCC Application to Sustainability
Green Roofs
DEARBORN, Michigan -
Ford is installing an
environmentally sound
roof on its $2-billion
redevelopment of its
Rouge River
manufacturing complex.
Keith Schneider, program
director of the Michigan
Land Use Institute,
praised the green roof
plan as innovative, if not a
little risky. The new Ford
Rouge Center assembly
plant construction is one
of the largest industrial
redevelopment projects in
the US.
The green approach is designed to save Ford $35
million, when compared with the cost of installing a
conventional treatment system, Schneider says.
25. Triple Glazing & Heat Mirror
Alternatives cost more – but save more energy
3/17/2010 25
26. IG Insulating Properties
14.30
16.00
14.00
12.00 9.09
8.00
10.00
8.00
3.45 4.00
6.00 2.22
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Data obtained using L.B.L. (Lawrence Berkeley Laboratories) Window 5.2 analysis program (nfrc/ashae)
3/17/2010 26
27. IG Solar Heat Gain
Coefficient
0.70
0.67
0.70
0.60
0.50 0.38
0.32 0.30
0.40
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0.20
0.10
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3/17/2010 27
32. Risk and sensitivity to above analysis.
Fuel Escalation could less than 4% causing
Breakeven to be longer
R value energy saving assumptions may not be
proportional as assumed.
Solar Gain may have greater energy saving and
peak shaving impacts.
Difference in initial HVAC capital costs should
also be considered.
Other positive attributes like quiet and no mold
may be more valued than energy savings.
3/17/2010 32
33. Investment
Source: Sustainable Building Technical Manual
3/17/2010 33
38. Is this Tinted Glass Building Green and Intelligent ?
What are the tradeoffs in HVAC, Daylighting & Productivity
3/17/2010 38
39. Comfort
“The best sustainable designs are not just environmentally responsible. They
also produce buildings where employees can thrive and productivity can
soar”
Christine Ervin
President and CEO
U.S. Green Building Council
“Using green building strategies can result in increases in occupant
performance measures by 6 to 26 percent.”
William D. Browning
Founder of Green Development Services
and Senior Associate of
Rocky Mountain Institute
3/17/2010 39
41. Sustainability Matrix
The David Lucile Packard Foundation
Los Altos Project
Net Present LEED™ LEED™ LEED™ LEED™ Living
Market
Values Certified Silver Gold Platinum Building
30 Years $22.7 $19.6 $19.7 $18.5 $18.3 $18.7
60 Years $62.9 $45.3 $36.7 $27.8 $23.7 $19.6
100 Years $348.9 $218.4 $166.9 $95.8 $62.2 $20.8
Total Savings
over Market $ - $3.1 $3.0 $4.2 $4.4 $4.0
after 30 years
http://www.packard.org/pdf/2002Matrix.pdf
3/17/2010 41
42. Green and Intelligent Building Convergence Review
Energy management for HVAC, Lighting & Demand
Response – CBIP – Energy Star
Green Buildings – Environment - LEED & Green Globe
Access and Security for safety of occupants and visitors
Cabling and Wireless to increase revenue and lower costs
Communications to increase value and productivity
Digital Signage for instant information and advertising
Interconnectivity to other buildings and the community
3/17/2010 42
43. Who is working on bringing these issues all together to
evaluate alternatives and make sound economic choices?
CABA INTELLIGENT & INTEGRATED BUILDINGS COUNCIL
Developed the BIQ Rating System for IB with
Appraisal Institute and EPA Energy Star support
www.caba.org/biq
Life-Cycle Cost Analysis Tool with Reed
Construction Data/RSMeans
www.caba.org/lifecycle
Developed a New Intelligent Building Roadmap
www.caba.org/ibrm
3/17/2010 43
44. Analyzing the Life Cycle Cost of
Integrated Building Systems
Produced by: Thomas J. Lohner, P.E.
Vice President, TENG Solutions
3/17/2010 44
46. Facility Integration
Life Cycle Costs
First Cost
Changes, Additions & Upgrades
Operating & Maintenance
Utility Costs
3/17/2010 46
47. Typical Building Approach to Automation
No Integration !
5 User Interface
Workstations!
Emergency Generator
Main Service Switchgear
Computer
Room A/C
UPS
Door Access Control & HVAC Control System
Lighting Control System
Intrusion Detection
Fire Management System
48. Non-Integrated Building
Engineering Left up to Contractors
Sole Sourcing Required to Provide
Integration - $$$$
Stand Alone Systems - Single Purpose
Nobody Responsible for Technology
Integration
3/17/2010 48
49. Partial Integration Concept
Proprietary Control Sub-systems
Modbus
Database
Client FMS Workstation
Server
Main Service Switchgear
Web Server
Facility IP Network
Security
Console Emergency Generator
SNMP over IP
Computer Web Server
Room A/C Web Server Web Server
Web Server
UPS
Door Access Control & Lighting Control System HVAC Control System
Fire Management System
Intrusion Detection
50. Partial Integration Issues
Software Integration on IP networks
Use Web Enabled - FMS Application
Program
Methodology Employed for Existing
Buildings
Hardware Intensive - Many I/O Servers
3/17/2010 50
51. BENEFITS
Partial Integration
Single User Interface for all Systems
Web based GUI - Defacto Standard
Permits Migration to Open Control Networks -
Competitive Bids !
Permits Development of Campus Wide
Relational Database
Database Permits - Maintenance Management , Energy
Management , Asset Management, etc.
3/17/2010 51
52. Full Integration Concept
Open Standards Based Control Sub-systems
Modbus
Database
Client FMS Workstation
Server
Main Service Switchgear
Web
Server
Facility IP Network
Security
Console Emergency Generator
SNMP over IP
Web
Server LONTALK - EIA 709.1 &
Computer Web
Room A/C BACNET – ANSI/ASHRAE
Server
135A
UPS
Door Access Control, Intrusion Detection, Lighting & HVAC Control System
Fire Management System
53. Full Integration Issues
Open Standards Applied Where Possible
I/O Servers Minimized
Number of Devices Reduced - Shared
Information
3/17/2010 53
54. BENEFITS
Full Integration
Same as Partial Integration Approach
PLUS
Competitive Bids in each Building
Integrated Building Sub-systems
Lighting, HVAC, Power Management and
Security
Lowest Life Cycle Cost Approach
3/17/2010 54
55. Life Cycle Cost
Analysis Assumptions
150,000 SF Building
Major M & E Equipment Cost - $6.00/SF ($18.00/SF TOTAL)
Proprietary Systems Life Cycle - 7 years (FAR)
Replacement Cost = 125% of the Initial System Cost
50% of the Proprietary Systems are Replaced (Next Generation)
20% of the Open Systems are Replaced (Age & Obsolescence)
Average Cost per Control Device - $400
Open and Proprietary Control Devices Base Bid Costs are the Same
Training Costs - $3000/ GUI; $1500/ Protocol; 50% of 1st year cost for
years 2 and up
3/17/2010 55
56. Life Cycle Cost Analysis Assumptions
Base Year
Base Year Annual
Dynamic Initial Service Changes &
Control Sub- Cost Contract Modificatons
systems ($/SF) ($) (% of 1st Cost)
HVAC Controls $1.5/SF 15,000 2%
Lighting Controls $1.0/SF 10,000 3%
Power Monitoring $0.5/SF 5,000 1%
Intrusion Detection $0.3/SF 3,000 2%
Total $3.3/SF $ 33,000 $39,000
57. Comparative First Costs
Non-
Integrated Partial Full
System Component Building Integration Integration
Graphical User Interface -
Hardware & Software 5 @ $15K 1 @ $20k 1 @ $20k
Equipment Networking Uprades 0 4 @ $2k 4 @ $2k
Web Servers 0 5 @ $10k 3 @ $10k
Control Device Reduction (5%) 0 0 -24750
TOTAL $75,000 $78,000 $33,000
Full Integration Savings $42,000 $45,000
No Account For Division 17000 Savings - 20 to 30%!!!
58. Non-Integrated HVAC, Lighting & Intrusion Detection
Echelon World Headquarters
Dimmable
Lighting Control
VAV Boxes
No Occupancy Control Blinds & 24v Wiring
59. Integrated HVAC, Lighting, Intrusion Detection & Blind Control
Echelon World Headquarters
User Scene Control Switch
Lighting, HVAC & Occupancy
Sensor Control Trunk Sensor and 120v Wiring
60. Changes, Additions and Upgrades Issues
Cost Premium Paid for Additions &
Changes to Proprietary Controls
Limit Scope of Future Improvements and
Modifications
Cost Premium for Non Competitive
Service Contracts
3/17/2010 60
61. Changes, Additions and Upgrades
(Annual Costs- 2nd Year & On )
Non
Competitive Non-
Cost Integrated Partial Full
O & M Cost Issues Premium Building Integration Integration
Service Contracts 25% $ 41,250 $ 41,250 $ 33,000
Future Additons &
Remodeling 25% $ 49,500 $ 49,500 $ 39,600
Future Software
Upgrades 5 @ $1k 1 @ $2k 1 @ $2k
Year 7 Replacement
Cost Reserve ( 9% APR) $ 33,629 $ 33,629 $ 13,452
Total $ 129,379 $ 126,379 $ 88,052
Full Integration Savings $ 41,327 $ 38,327
62. Operating and Maintenance
(Annual Costs- 2nd Year & On )
Non-
Integrated Partial Full
System Component Building Integration Integration
Training $ 11,250 $ 5,250 $ 3,750
Improved O & M Staff Efficiency 0 SOFT SOFT
IT Support 5 @ $2k 1 @ $3k 1 @ $3k
Management Reporting 0 (3 @ $1k) (3 @ $1k)
Total 21,250 $ 5,250 $ 3,750
Full Integration Savings $17,500 $ 1,500
Computerized Maintenace Management $ 25,000 First Cost
(Extend Major M & E Equipment Life; 25yrs vs 20yrs)
Future Worth ($ @ Yr 20) $ 180,000
Present Worth (P/F @ 9%) $ 32,112
63. Typical Energy Use Profile
Other (Elevators, etc.)
5% Ave Annual Energy
Power Use
25% Ave Annual Energy $0.07 / SF / YR
Use
$10,000 / YR
$0.33 / SF / YR
Lighting
$50,000 / YR TOTAL
HVAC
$1.33 / SF / YR
Power
$200,000 / YR
Other
HVAC Lighting
30% Ave Annual Energy 40% Ave Annual Energy
Use Use
$0.4 / SF / YR $0.53 / SF / YR
$60,000 / YR $80000 / YR
64. Energy Costs
(Potential Annual Cost Savings)
Non-
Savings Energy Integrated Partial Full
System Component Factor Cost ($) Building Integration Integration
Integrated Lighting & HVAC Control 5% $60,000 0 0 $3,000
Improved Load Factor ( .5 to .55) 5% $200,000 0 $10,000 $10,000
Better Maintained Equipment 1% $60,000 0 $600 $600
Coordinated Supply/Demand EMS Strategies 5% $200,000 0 $10,000 $10,000
Integrated Building Control System
Savings $0 $20,600 $23,600
65. System Integration
Life Cycle Cost Summary
Non-
Integrated Partial Full
Life Cycle Cost Component Building Integration Integration
Comparitive First Cost $75,000 $78,000 $33,000
Changes , Upgrades & Additions $129,379 $126,379 $88,052
Operating & Maintenance $21,250 $5,250 $3,750
Ut ility Cost $200,000 $179,400 $179,400
Net Present Value $2,325,232 $2,074,091 $1,773,493
Discount Rate 9%
Life Cycle Period (yrs) 10
Savings $551,739 $300,598
66. Conclusion:
Full Integration will Result in the Lowest
Net Present Value
The Value of the Integrated Approach will
Increase w/ IT Advances
Information will be your Competitive
Advantage
3/17/2010 66
67. What are the opportunities to get funding for upgrades and
retrofit alternatives that provide lower life cycle costs?
Federal Government Programs
Ontario Energy Board funding for
Enbridge and Union Gas Demand Side Management
Ontario Power Authority Conservation Programs
Local Distribution Companies – Powerwise
Energy Service Companies (ESCO)
Financial Institutions for Leasing or Borrowing
Private energy companies for onsite generation
3/17/2010 67
68. Applications
NRCan has a number of building upgrade
programs depending on size of building
NRCan has developed new RETScreen tool
for energy efficiency
Renewable and Clean generation incentives
Peak Reduction and Demand Response
Programs pay for energy management
systems that provide controls and M&V
3/17/2010 68
69. Specifications
For products to meet program requirements
they must be Energy Star or equivalent
rated.
For services, such as energy audits and
feasibility studies they must be performed
by approved professionals and signed off.
For financing the lenders need proof of
credit worthiness and proper securitization
3/17/2010 69
70. Features & Benefits
New Building Automation Systems and Upgrades
contribute to energy savings.
New chillers, VSD, Lighting Systems all offer
more interoperability and controls
Most incentive programs require a measurement
and verification plan as proof
You can’t manage what you can’t measure
Intelligent buildings are GREEN and Sustainable
3/17/2010 70
71. Federal Programs Available
Natural Resources Canada's Office of Energy Efficiency now
offers the ecoENERGY Retrofit Incentive for Buildings, the
commercial/institutional component of the ecoENERGY Retrofit
financial incentives for existing homes, buildings and industrial
processes. If you have not yet started a new energy efficiency
project, you could receive the lesser of $10 per gigajoule of
estimated energy savings or 25 percent of eligible project costs.
The next Call for Proposals period is from Feb 1st 2008 to March
31st 2008. When applying, you will need to provide a pre-project
energy audit of your buildings. As well, you cannot incur any
costs related to the project until you receive a signed
Contribution Agreement.
Website: http://oee.nrcan.gc.ca/commercial/financial-
assistance/existing/retrofits/index.cfm?attr=0
3/17/2010 71
72. Provincial Programs Available
Ontario Power Authority – New Construction
Program will build on CBIP concept of energy
modeling and payment or Low rate interest to
facilitate better energy performance.
Demand Response 3 – contractual agreement for
100 or 200 hours – incentives paid to schedule by
term and amounts.
ERIP – Local distribution company programs
3/17/2010 72
73. Other Programs Available
Renewable and Clean Standard Offers
Toronto Better Building Partnership
Toronto Atmospheric Fund – Financing
BOMA Toronto – CDM
OPA for Continuous Commissioning and
Next Gen Building Automation
Tax credits and Class 43 Accelerated
Depreciation on qualified equipment
3/17/2010 73
74. Financing Options
Self – Finance – Your cost of money
Toronto Atmospheric Fund – Financing
Lease or Rent – morEnergy Options
Low interest loans – Banks and Credit
Unions
Energy Service Companies using
Performance contracts
Carbon Credits and other Trading Schemes
3/17/2010 74
75. What is ERIP?
Provides incentives for electrical
retrofits in your business
Replaces inefficient products with
high-efficiency ones, which will lower
your operating costs
Offers incentives for sustainable, measurable and
verifiable energy retrofits that result in
on-peak demand savings and
annual energy savings
3/17/2010 75
76. Program Overview
ERIP focuses on:
1. Lighting and motors
2. Heating, ventilation and air conditioning
3. Overall electricity systems
ERIP incentives are calculated
1. For a set sheet of activities
2. For the power and performance improvements of the total
system improvement
The program is operated by your local distribution
company and is funded by the Ontario Power
Authority.
3/17/2010 76
77. How ERIP Works
The program works this way:
• You assess your need for new electricity
upgrades.
• You decide on what equipment or technology you are
going to use to save electricity.
• You agree with your local distribution company about
the project.
• Once installed and verified, the program will reimburse
you a portion of the equipment costs based on that
calculation of how much electricity efficiency expected
to be gained.
3/17/2010 77
78. ERIP tracks
Prescriptive
For predefined technologies with corresponding per unit or
performance basis savings measures
Will involve replacements and upgrades to existing systems
Incentive provided is based on the calculation of what is installed
Custom
For more specific solutions to electricity efficiency retrofitting
Technology, equipment and systems
are evaluated on the basis of their
power and energy performance
improvement
Incentive offered based specifically
on the level of improvement.
3/17/2010 78
79. Contact Info
David Katz, MBA, BA
Sustainable Resources Management Inc.
6 Morning Gloryway
Toronto, Ontario
Canada M2H 3M2
Tel: 416-493-9232
Fax: 416-493-5366
Email: dkatz@sustainable.on.ca
Building Intelligence Quotient Consortium
Email: dkatz@building-iq.com
3/17/2010 79