The Green of Green: 25 Ideas to Cut Costs and Turn a Profit with Sustainable Design

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The Green of Green 25 Ideas to Cut Costs and
Turn a Profit with Sustainable Design

• Moderator Rachel Azoff, Multifamily Executive
• Speakers Dori Eden, KBKG
• Fred Schreiber, AMLI
  Residential
• Doug Walker, UDR

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? Multifamily housing accounts for 18 of
nations housing stock. Rental housing accounts
for 83 of all multifamily housing. ? Energy
prices are rising faster than overall rate of
housing costs in U.S. Between 2003 to 2006,
housing costs increased by 110, while energy
costs rose by 126. ? Retrofits can improve
energy efficiency by 30-75 depending on the
initial state of the building. ? Wasteful
energy use poses a threat to maintaining
affordablerental housing.

• Key Sustainability Facts

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www.energystar.gov for benchmarking tools gt
Gather electric bills for past 12 months gt
Several analytical tools to see baseline energy
usage ? Members of Building Owners
Managers Association gt Compare your
buildings performance with other
members buildings

• Idea 1 Evaluate Your Buildings Performance

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Idea 2 Conduct an Energy Audit

• Make sure to use a trained auditor. Several
  national programs that utilize whole-building
  approach
• HERS (Home Energy Rating System)
• BPI (Building Performance Institute)

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Idea 3 Know Expected Utility Inflation
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Idea 4 Measure and Communicate Energy Usage

• What gets measured, gets focused on
• Enable (and reward) property managers who can
  effectively manage utility usage
• Cant drink water out of a fire hose must make
  the utility data actionable

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Idea 5 Resident Education

• Provide residents with context to understand
  their relative energy usage
• Share tips and best practices to reduce resident
  usage
• Effectively communicating is critical when
  implementing energy-saving or water-conserving
  strategies

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Idea 6 Partner With Your Residents

• Partner with your residents by coupling capital
  improvements with usage reductions

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Streamline the permitting process for building,
plan, and site permits on projects that
achieve a certain level of sustainability ?
Cities waive or reimburse application, building,
or permit fees for specific levels of LEED
other green building rating systems excellent
for the party funding the construction
Idea 7 Expedite Permitting
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Idea 8 45L Federal Tax Credit Reduces Liability

• Apartment developers and homebuilders can obtain
  45L Federal Tax Credit of 2,000 per
  energy-efficient dwelling unit
• Less stringent 1,000 tax credit available for
  manufactured homes
• Heating and cooling energy consumption must be
  at least 50 below that of a reference dwelling
  designed according to 2004 energy standards
• Building envelope must provide a level of
  heating and cooling that is at least 10 below
  reference unit.

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? 100 of the Units Passed ? 412,000 Tax
Credits? Key specs include gt HVAC13 SEER A/C
7.7 HSPF Heat Pump gt Insulation R-13
wall gt R-30 attic Windows U-Factor 0.45, SHGC
0.35

• 45L Tax Credit Case Study
• 206-Unit Apartment Complex in Columbus, GA

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100 units passed? 110,000 tax creditsBarely
passed 2005 T24 ? Key specs include gt
HVAC13.0 SEER A/CHydronic Heat gt Insulation
R-13 wall gt R-38 attic windowsU-Factor 0.39,
SHGC 0.38

• 45L Tax Credit Case Study
• 55-Unit Apartment Complex in Danville, CA

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? 100 units passed ? 410,000 Tax Credits?
Key specs include gt HVAC 9.4 SEER A/CHydronic
Heat gt Insulation R-19 wall gt R-49 attic
windowsU-Factor 0.32, SHGC 0.32

• 45L Tax Credit Case Study
• 205-Unit Apartment Complex in Plover, WI

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? IRC Section 179D allows for an immediate
depreciation deduction of up to 1.80/sf for
commercial buildings that achieve a 50
reduction in total energy and power costs ?
Building Envelope - HVAC - Interior
Lighting ? Multiple paths to deduction gt
Whole 1.80/sf for 50 reduction in total annual
energy cost related to HVAC and interior lighting
in comparison to 2001 energy standard gt
Partially-qualifying property0.60/sf for
building envelope0.60/sf for HVAC0.30 to
0.60/sf for interior lighting gt Fractional
deduction through interim rule
Idea 9 179D Energy-Efficient Building Deduction
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? The Energy Independence Act of 2007 and its
Energy Efficiency Conservation Block Grant of
2007 authorizes 2 billion in grant money to
communities and states? Grants for energy
audits other technical assistance
Idea 10 Grants Offset Development Costs
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? Grants and loans Two ways to help small
businesses build green and can be especially
effective in jurisdictions that do not have
established green building programs? ESCO
Energy Service Companies are performance-basedcon
tractors compensation and financing are linked
to amount of energy saved ? Mortgage lenders
Finance affordable multifamily housing via
institutions, pension funds, government, and
other low-interest subsidy providers ? Special
programs Finance the retrofit of older apartment
buildings in low-, moderate-, and middle-income
communities
Idea 11 Loans for Green Improvements
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? Weatherization Assistance Program (WAP)The
rule expressly indicates that income-qualified
public housing, assisted housing, and LIHTC
properties may be eligible recipients of WAP
funds. The rule does not, however, require states
or local WAP service providers to set aside WAP
funds for these properties. In 2006, states
used WAP funds to provide energy efficiency
improvements to approximately 16,000 multifamily
units.? U.S. D.O.E.s State Energy Program
(SEP) Funding for energy-related projects
including energy audits, retrofits, education,
training, and new financing mechanisms to promote
energy efficiency and renewable energy. State can
create grant or low interest loan programs.

• Special Programs Continued

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? Rebates from cities Example Pasadena,
CA Water Power High Performance Building
Program Developers who exceed the minimum
certification will receive one months
electricity savings for each percent efficiency
better than code the building performs up to
100K.Example Elizabeth, NJ offers up to
5,000 in rebates for documented energy saving
expenses in low-income housing developments.
Idea 12 Rebates and Incentives
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State Income Tax Credit Example NY
State Energy Research and Development Authority
This program offers rebates on certain Energy
Star products. Rebates range from 75 - 150?
DOEs State Energy Program invests 328.5 million
to 12 states and territories to support
energy-efficiency projects that will lower energy
bills? Rebates from utility companies for
energy-efficiency ? Counties offer
rebatesExample City of Santa Clara, CA water
heating program city offers solar water heaters
and lease out

• Rebates and Incentives Continued

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? Municipalities can purchase energy-efficient
appliances in bulk and offer discounted prices
? City can provide a rebate for water
conservation or energy use
Idea 13 Discount on Environmental Products
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• Idea 14 Install High-Efficiency Lighting

Every 3-watt reduction in lighting power results
in roughly a 1-watt reduction in HVAC. ?
Lighting Strategies More efficient luminaries,
ballasts, and lamps, Bi-level switching ?
Interior and Exterior Lighting Case Study
Retrofit Property gt Lighting Investment
64,000 gt Reduction in Energy 1,000 per month
gt Annual Savings 12,000 gt Payback in
approximately 5 years
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The application of super insulating panels
wrapped around the exterior of the building will
increase the thermal insulation of the concrete.

• Idea 15 Apply Super Insulating Panels to
  Exterior

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? 30 tax credit for solar energy property PIS by
December 31, 2016? Equipment which uses solar
energy to generate electricity, to heat or cool a
structure, provide hot water in a structure, or
to provide solar process heat? Equipment which
uses solar energy to illuminate the inside of a
structure using fiber-optic distributed
sunlight? Solar energy property also has a
5-years MACRS tax life depreciable basis is
reduced by half of the credit? Potential to
apply for grants in lieu of credit in 2009 and
2010? Solar water heaters

• Idea 16 Install Solar Panels and Obtain
  Section 48 Tax Credit

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? Pool heaters ? Parking lot areas? Water
heaters

• Solar Panels Continued

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• Idea 17 Windows Openings

• Doors and windows often causes significant
  heating/cooling losses
• Install glazing
• Caulk and properly seal
• Replace w/ low-e windows

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? Dimmer settings? Bi-level switching? Motion
sensors? Timers

• Idea 18 Lighting Controls

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• Idea 19 Envelope Upgrades

• Caulking/Improve air sealing
• Add insulation
• Improve duct sealing

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• Idea 20 Preventative Maintenance

• Develop green maintenance program with best
  practices approach to sustainability of building
  and systems
• Regular cleaning of evaporative coil
• Regular filter replacement
• Check water heater temperature settings

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Install New ? Shower heads ? Low-flow
toilets ? Aerators ? Flush valves ? Dual flush

• Idea 21 Low-Flow Plumbing Fixtures

Leak detection is also critical!!
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? Water and drought-resistant landscaping?
Reclaimed water? Irrigation sensors?
Timers? Pest control, landscape pool vendors
use green products

• Idea 22 Landscaping

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Idea 23 Reflective Roofing Reduces Heat
Island Effect
Cool roofs are one of the quickest and lowest
cost ways we can reduce our global carbon
emissions
Dr. Steven Chu US Secretary of Energy
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Idea 24 Programmable Thermostats Put
Residents in Control of their
Energy Use

• ENERGY STAR programmable thermostats can save up
  to 33 in annual electric bills

• Precise, accurate control results in greater
  comfort

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Sullivan Place Energy-Efficiency Experiment
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Idea 25 Increase Recycling

• In many municipalities, recycling is either
  subsidized or collected at a flat fee

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The Green of Green 25 Ideas to Cut Costs and
Turn a Profit with Sustainable Design

• Questions? E-mail us!
• Dori Eden, KBKG dori.eden_at_kbkg.com
• Fred Schreiber, AMLI Residential
  fschreiber_at_amli.com
• Doug Walker, UDR dwalker_at_udr.com