January 2012 OMB Scorecard on
Sustainability/Energy
Scope 1&2 GHG Emission Reduction Target
For Scope 1&2 GHG ReductionTarget of 12.3% by 2020:
17.8% reduction in 2011 and on track
Score: GREEN
Scope 3 GHG Emission Reduction Target
•  More energy efficient
•  Saves money over life cycle
•  Improves employee job
satisfaction
•  Buildings consume about
40% of the total energy
produced in the US.
Reduction in Energy Intensity
•  Energy costs have risen
51% over the last two
decades.
Reduction in energy intensity in goal-subject facilities compared with 2003:
26.4% and on track for 30% by 2015
Score: GREEN
Use of Renewable Energy
Use of renewable energy as a percent of facility electricity use:
Total of 8.4% from renewable electricity sources including at least 2.5% from new sources
(thermal, mechanical, or electric)
•  Government to lead by
example and stimulate
demand for green energy
through
E.O. 13514.
Electricity Price Projections
Reduction in potable water intensity compared with 2007:
9.7% increase and not on track
Score: RED
Reduction in Fleet Petroleum Use
Energy costs are rising for both
optimistic and pessimistic projections
•  15% of Government
inventory must be green
by FY2015.
Reduction in fleet petroleum use compared to 2005:
4.9% and not on track
Natural Gas Price Projections
Score: RED
Green Buildings
Sustainable green buildings:
0.51% of buildings sustainable
0.53% GSF of inventory sustainable, as reported in FRPP
Score: RED
Scorecard below standard
in Green Buildings
Design Alternatives
1.  Status Quo
Renew current without green building
E.O.13514: Not Met
2.  Renovation
Renew with green building renovation
FAA does not cover renovation costs
E.O.13514: Met
3.  Relocation
Move operation to a green building
FAA will cover initial relocation costs
E.O.13514: Met
Phase I
EIA
Energy Data
Consumption
Data
Current Approach:
System Assumptions
1.
Square footage remains the same
2.
Number of employees remains the same
3.
Green Building is available in the market
area
4.
Relocation: will remain in the same market
5.
Renovation: Lessor agrees to pay/perform
necessary work
6.
Partial service lease: Includes operation and
maintanence costs
7.
Utility costs are separate from rent
Data & Cost Analysis
Life Cycle Costs
Elect.
Nat.Gas
Water
Historical Data Distributions
Stochastic LCCLA
ΔCapital, ΔEnergy, ΔWater Breakeven/
Variances
Net-­‐Zero
Ranking
Capital
CBEC
•  Current lease analysis and acquisition method focuses on upfront
capital cost per square foot, and not total life cycle cost
Score: GREEN
Reduction in Potable Water Intensity
Actual Status:
REMS
Lease Data
•  As of FY 2012, less than 1% of direct leases have been identified
•  No extra budget will be appropriated for this process
For Scope 3 GHG ReductionTarget of 11% by 2020:
0.1% reduction in 2011 and behind schedule
Score: YELLOW
•  125 out of 1081 direct leases meet E.O.13514 criteria
•  15 leases must be identified to help FAA achieve toward 15% green
inventory target.
Square ft./HPSB
Deterministic
LCCLA
∑Capital+∑Energy+∑Water
Energy Cost
Distribution
Water Cost
Distribution
Capital Cost
Distribution
Green Building
Why Convert to Green
Buildings?
•  Aging building
•  Higher energy cost
•  Rising maintenance cost
Department
of Transportation
Target:
Building Properties
Management Phase III
Phase II
Lease Term
Location/Climate Zone
Electricity Price/Consumption
Natural Gas Price/Consumption
Water Price/Consumption
Rent Premium Price
Capital/Initial Price
Current Building
RECO
Problem
E.O.13514 Federal Leadership in
Environmental, Energy, and
Economic Performance
Need
A system is needed to help analyze life-cycle costs and to suggest a course of
action to provide a “win-win” solution for all stakeholders
1.  To satisfy E.O. 13514 goals (Environmental)
2.  To meet FAA’s financial requirements (Budget)
3.  To minimize impact for employees that may be affected
However due to the FAA’s limited resources, the team was asked to rank buildings
based on Cost effectiveness and Sustainability compliance.
Capital Cost Data
GSA
Phase 1
Gather lease, energy, and capital data. Analyze current cost methods. Develop
surrogate consumption data from comparable sources for untracked utilities.
Phase 2
Use phase 1 outputs in calculations to determine Life Cycle Cost Lease Analysis
N
N
N
N
CElec
CNG
CWater
CRe nt
LCCLA = ∑
+∑
+∑
+∑
t
t
t
t
(1+
d)
(1+
d)
(1+
d)
(1+
d)
t=0
t=0
t=0
t=0
Phase 3
N =Length of Lease
D =Discount rate used to adjust cash flow to
present value
CElec =Annual Electricity Cost
CNG =Annual Natural Gas Cost
CWater =Annual Water/Disposal Cost
CRent =Annual Rent Cost
Analyze design alternatives accounting for stochastic nature of energy prices
1.  Migrate to Partial Service Leases
Full service leases do not allow the FAA to reap the benefits from green buildings.
Since negotiated rent costs do not change throughout the term of the lease with
respective to the utility costs. Partial service leases are the solution to this problem.
These leases allow FAA to benefit from the utility savings of a green building.
If a full service lease cannot be avoided, the FAA should negotiate for a lower rent to
reflect the savings that the lessor will receive.
2.  Track and Conserve Utilities
Utility vs. Cost was calculated from LCCLA and Stakeholder Utility Hierarchy.
10 Year Leases with ~ 15,000sq.ft
Utility of Top 15 Buildings
Since partial service leases allow FAA to track their utility usage on a monthly basis,
they will be able to modify their energy usage habits based on the performance from
previous months.
0.90
3.  Target Smaller Buildings
0.80
76% Probability of
breaking even
New Jersey
0.70
•  Higher Energy
Unit Cost
•  Lower Energy
Unit Cost
0.60
Results show leases in areas
with higher energy unit cost
have greater probability of
breaking even
Scan for IEEE PublicaCon Utility
Pennsylvania
55% Probability of
breaking even
0.50
Status Quo
0.40
Renovation
0.30
Relocation
0.20
0.10
0.00
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
All but two of the buildings in the ranked list are under 25,000 sq. ft. This is because
of the inherently lower costs of relocating or renovating a smaller building. This side
by side comparison also reveals that buildings in areas with higher energy costs give a
greater probability of breaking even.
4.  Target Locations with High Energy Costs
Rent is the largest contributor to costs. As rent does not change throughout the term
of the lease, it has little potential to contribute to savings. The greatest savings will
come from buildings in areas with lower capital costs, but higher energy prices
Cost
DEPARTMENT OF SYSTEMS ENGINEERING AND OPERATIONS RESEARCH ALEXANDRE CHEYTANOV NATHAN BALES CHRISTOPHER SWIFT PARAMJEET KHANNA