4C — January 31 - February 13, 2020 — 2020 Forecast — M id A tlantic Real Estate Journal
Energy Management and Consulting
n April 2019, the New York City Council passed Local Law 97 as part of By Dailey Tipton, Evolution Energy Partners NYC LL97 and Philly Energy Efficiency Program and the Benefits to Building Owners I mitment to cut greenhouse gas emissions by at least half over a near term horizon. upgrades are made to meet the requirements and defined timelines. a highly valuable and integral element of property and asset management. Economic Benefits
cost savings of 5 to 30 percent savings on utility bills alone. By upgrading current build- ings in these markets, building owners can see savings in the costs incurred for ventila- tion, cooling, heating, and lighting. In turn, operational costs are reduced, and fewer maintenance requirements may be needed. Apart from cost savings, energy efficiency will increase tenant or buyer demand, leading to increased prices and rents, making the property more attractive buy or lease. On the other hand, energy use improvements usually re- quire a significant upfront in- vestment. For some efficiency upgrade projects, payback periods can often be less than two years. Some businesses can take advantage of creative financing options, coupling their upgrades with rebates and incentives, depending on location and programs available. When considering your options for these types of improvements, it may be beneficial to speak with a com- pany who specializes in the strategy and implementation of energy-efficiency projects for maximum recognition of savings. Social and Health Benefits While the relationship be- tween energy efficiency and occupant well-being is com- plicated, upgrades can provide several social and health ben- efits. Implementing energy- efficient policies translates to better air quality within the building and an overall decrease on energy demand. This ultimately allows less de- pendence on fossil fuel energy production. On average, energy effi- ciency interventions lead to substantial improvements of the building operations and improvements to the overall health of occupiers. The well being of the people within these buildings can make a compelling case to implement energy improvements – just as the value enhancement of the building and economical cost-savings. As we ponder the relation- ship between value, sustain- ability and energy efficiency, you must consider the impact each improvement will have on cost-savings and the physical and mental well being of every- one in the building. Further, as continued on page 12C
the Climate Mobilization Act, impact- ing buildings larger than 25,000 s/f. A few months later, Phila- delphia fol- lowed suit,
The expectations are that the existing buildings will im- prove their energy efficiency, decreasing the consumption of energy and greenhouse gas emission as a result. But what do the acts mean for the own- ers and operators of buildings in these cities? In order to meet these re- quirements, building owners and operators need to deter- mine the timing based on the size of their building and take actions to assure proper
In short, they need to con- sider the potential impact of the published regulations to meet the mandated energy efficiency standards set out by the acts. For example, Philadelphia requires non- residential buildings with more than 50,000 s/f to submit high-energy certificates or tune their energy systems to proper usage levels. Given the cost savings and environmental benefits, en- ergy efficiency has evolved into
According to the U.S. Energy Information Administration, building energy consumption accounts for up to 40 percent of all energy consumption in the US. Depending on the ef- ficiency of the buildings, costs associated with energy can ac- count for a significant portion of recurring monthly expenses for many businesses. The new energy efficiency requirements passed by New York City and Philadelphia can result in a
passing a similar bill for the creation of the Building Ener- gy Performance Program, im- pacting buildings over 50,000 s/f. Both acts serve as a com-
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