Noel's Green (make that SUSTAINABLE) Blog » Finance

Global warming : just the facts, Ma’am

noel — Sun, 21 Feb 2010 06:20:03 +0000

Some people in communications, and in the real estate and investment arena, have been making assertions that green buildings have economic benefits not worth the trouble and expense. This is to imply that improving energy efficiency and measuring the results is not worth the trouble. I say B.S.

I am not interested in casting shame on anybody, but now I feel compelled to say something. We Americans have to have an opinion, even if we don’t have all the facts. We are watching too much news television and listening to too many talk radio shows: Take FoxNews and their talk shows. They work extra hard to convince us that scientific evidence is being manipulated for political reasons. They draw a specious connection between the Democratic Party, (supposedly led by Al Gore), and scientists as proof of a vast left wing conspiracy. These popular so-called news programs cast global warming warnings as a “plot”, to increase the size and power of government, raise taxes, and so on.

I am not convinced. It worries me that they are unable to present scientific evidence for what it is, EVIDENCE. They question scientific method at the same time. Why do these folks struggle with high school science concepts of data collection and drawing reasonable conclusions? (Bill O’Reilly is so dishonest on this score, it amazes me how many people watch him.)

We Americans have to have an opinion on everything and anything, whether we are knowledgable or not!

Back to reality and engineering. Here is a tidbit about engineering economics that would be construed as leftist by FoxNews. (Of course, they would attack it as propaganda because it is from the Washington Post. Not because they have the facts to contradict it).

quote from Washington Post January 1, 2010

Jack Beuttell, global sustainability manager with Hines (Partnership) , a property management firm that manages 10 buildings in the District, said that questions about a property’s energy consumption have become increasingly important to his company’s potential tenants.

Beuttell said that a building with a “95″ rating from the EPA’s “Energy Star” program, a rank that some of his company’s properties have earned, would typically save a tenant about $1.30 per square foot in annual energy bills over the national average for a similar building. That’s an “incredibly meaningful” figure to tenants, he said.

I like it. And not because I might benefit personally (Full disclosure: I helped engineer HVAC on a Hines project recently). It is just plain simple common sense to cut costs. It might even pump up your profits! Some left-wing conspiracy that is.

Report Dispels doubts on Conservation Measures

noel — Sat, 13 Feb 2010 16:43:20 +0000

This Lawrence Berkeley National Laboratory report, Building Commissioning: A Golden Opportunity for Reducing Energy Costs and Greenhouse-Gas Emissions should inform the skeptics about the efficacy of this process for buildings. Regular tuneups for your car are the norm, so the same should be for your building.

I quote:

“This report responds to a widely held concern that end-users do not have confidence in the nature and level of energy savings that can be achieved through the commissioning process.”

This is what I think of when they say “sustainable”: The report states that there is a 16% median annual rate of return on investment for existing buildings and and 13% median annual return on new construction. EXCELLENT. How many other investments bring in that rate of return on a sustained basis?

The report continues:

Applying … [this] to … non-residential buildings corresponds to an annual energy-savings potential of $30 billion by the year 2030… An industry equipped to deliver these benefits would have a sales volume of $4 billion per year and support approximately 24,000 jobs.

EXCELLENT!

Better HVAC can save $48 billion/year in the USA

noel — Fri, 05 Feb 2010 21:16:55 +0000

The latest numbers are that US buildings consume $320 billion/year in energy. 2/5 of all the energy used in the US. And about 40% of the energy (costing $120 billion/year) is used in buildings for HVAC.

Some of the 2009 stats HVAC designs that I have incorporated recently into my office building projects are expected to use 30% less than the levels allowed by the local and state building codes. (ASHRAE Energy code 90.1-2004).

Consider that more than 70 percent of existing commercial buildings in the country were constructed prior to 1980 (according to floor area, see this 2001 study) . It is very likely that most of these older buildings consume well over the present building code allowable.

There are no laws requiring them to retrofit. The financial incentive to retrofit is all that exists, and unfortunately, this is another example of out-of sight, out-of-mind ignorance. (and HVAC and building energy use in general getting no respect).

These buildings should be retrofitted to reduce energy use a minimum of 30% and more. Up to $48-60 billion per year is being simply wasted. Wow! That is $200 a year for every man woman and child in the US. Almost half as much as we throw away on the war in Iraq. ($130 billion in 2007)

Hey, what are you waiting for, lets find out where the energy is going!

Lighting… I did not mention lighting: higher efficiency lighting and optimal daylighting could save ANOTHER $20 billion /year easy.

If you still a skeptic, please read: “Working Toward the Very Low Energy Consumption Building of the Future”

Winston Churchill had it right

noel — Mon, 11 Jan 2010 22:56:07 +0000

I am concerned about a terrible Lack of Confidence in our economy and society: We must keep our heads high and continue to strive. The terrible danger is fear. Fear is paralyzing.

I have spent many hours this month getting criticized and rejected for trying to get ‘er done. In times of economic hardship, its clearly sliding backwards to say NO. And these days its happening over and over. The economy declined because of irrational fear.

It is our duty as businesspeople to move past the nattering naysayers. It is our responsibility to thank them for their thoughts, take their garbage to the curb, and find a solution.

Winston Churchill said this well in 1940 when the Nazi Germans were dropping thousands of bombs on the innocent during the blitz.

“I have, myself, full confidence that if all do their duty, if nothing is neglected, and if the best arrangements are made, as they are being made, we shall prove ourselves once again able to defend our Island home, to ride out the storm of war, and to outlive the menace of tyranny, if necessary for years, if necessary alone.

At any rate, that is what we are going to try to do. That is the resolve of His Majesty’s Government-every man of them. That is the will of Parliament and the nation.

The British Empire and the French Republic, linked together in their cause and in their need, will defend to the death their native soil, aiding each other like good comrades to the utmost of their strength.

Even though large tracts of Europe and many old and famous States have fallen or may fall into the grip of the Gestapo and all the odious apparatus of Nazi rule, we shall not flag or fail.

We shall go on to the end, we shall fight in France,
we shall fight on the seas and oceans,
we shall fight with growing confidence and growing strength in the air, we shall defend our Island, whatever the cost may be,
we shall fight on the beaches,
we shall fight on the landing grounds,
we shall fight in the fields and in the streets,
we shall fight in the hills;

we shall never surrender, and even if, which I do not for a moment believe,

this Island or a large part of it were subjugated and starving, then our Empire beyond the seas, armed and guarded by the British Fleet, would carry on the struggle, until, in God’s good time, the New World, with all its power and might, steps forth to the rescue and the liberation of the old.”

As a real estate investor, professional engineer, and creator of solutions for energy efficient buildings, this is basically analogous to where I stand today.

Corporate Geothermal is a Renewable Energy tax credit…

noel — Sun, 20 Sep 2009 02:16:28 +0000

Corporate geothermal or (ground-coupled or pond-coupled ) HVAC systems are eligible for tax credits under the same law as renewable energy measures tax credits. Renewable energies (wind and solar) and combined heat-power systems get a 30% tax credit. A new geothermal /geocoupled heat pump investment will garner a 10% tax refund, which improves an already excellent investment into a compelling investment.

Slinky piping loops are promoted for their advantage of requiring less trenching due to greater piping surface area and increased heat transfer capacity of the style.

Slinky ground source piping loop

The payback on the geothermal was very fast without the tax break. In this economic environment, paybacks are reportedly at 1-5 years. 16-100% return is hard to deny. I recommend doing it.

The federal Business Energy Tax incentive law grants businesses these tax credits: (database search form)

An additional tax credit is available for HVAC, lighting and hot water: if the building is designed and built to use 50% or less energy consumption than code allowable maximums (as benchmarked by ASHRAE Standard 90.1-2001) for each of these three categories. $0.60/square foot for each of the categories, up to a maximum tax credit of $1.80/square foot.

Calculating the tax benefits

noel — Thu, 17 Sep 2009 13:57:24 +0000

While I was thinking about how to calculate the tax benefits of upgrading and changing or upgrading HVAC systems, lighting and hot water heaters, I decided to see if anyone had made a calculator to analyze it already. Sure enough, General Electric had created this EPact calculator

I have not had the time to test and validate this yet, but I’d be happy to hear from anyone who has. Please feel free to contact me through this blog.