Cost Benefit Analysis for High Performance Buildings June 11, 2009 1 Introduction: Paul Shahriari What I do 9 Consulting Services 9 Technology Development 3 ecologic Member of the US Green Building Council since 2000 USGBC Faculty Member - retired Co-Chair of USGBC Greenbuild Steering Committee 2 Agenda Green Marketplace Update 9 Issues & Opportunities 9 Inspiration vs Implementation Sustainability 9 The Triple Bottom Line 9 The Role of Cost / Benefit Analysis Tools that make it easy 9 Example Analysis 3 The Sustainability Journey 4 The Green Marketplace Media Impact 5 The Green Marketplace Political Landscape 6 The Green Marketplace Political / Fiscal Landscape Economic Recovery Bill – $ 787 Billion 9 Energy Efficiency in existing buildings can generate Billions in savings by 2030, according to McKinsey & Co. Highlights of the Bill 9 9 9 9 9 9 9 Green Schools Green Federal Facilities Home Weatherization Energy Efficiency in States & Localities Public Housing Retrofitting Assisting Housing Green Jobs $ 53.6 Billion $ 5.55 Billion $ 5.0 Billion $ 3.2 Billion $ 4.0 Billion $ 4.0 Billion $ 3.95 Billion $ 79.3 Billion Tax Incentives 9 9 9 9 Energy-Efficient Existing homes Renewable Energy Production Treasury grants for energy investment Advanced Energy Investment Tax Credit 7 The Green Marketplace Political / Fiscal Landscape December 26, 2008 9 US DOE announces the award of sixteen new Indefinite Delivery Indefinite Quantity Energy Savings Performance Contracts (ESPCs) that could result in up to $80 billion in energy efficiency, renewable energy, and water conservation projects at federally owned buildings and facilities. The 16 Energy service companies: ( Max contract $5B ) 9 9 9 9 9 Ameresco Chevron Energy Solutions Clark Realty Builders Consolidated Edison Solutions Constellation Energy Projects and Services Group 9 Florida Power & Light Energy Service 9 Honeywell International 9 Johnson Controls Government Systems 9 9 9 9 9 9 9 9 Lockheed Martin Services McKinstry Essention NORESCO Pepco Energy Services Siemens Government Services TAC Energy Solutions The Benham Companies Trane US 8 The Green Marketplace A Basic Question: Where are we with Green? 9 The Green Marketplace A Different View 125,000,000 Households in US doing this……… $426,875,000,000 saved or spent on better things ROI of this investment 3415% 10 Client Perspectives on Green Implementation What is Sustainability? Who defines it? The Triple Bottom Line peo p plan et le prof it 11 Organizations defining their goals 12 The Team and their projects 13 What the Future Holds? Several observations and thoughts plan et peo p le prof it 14 What the Future Holds? Align your offering with your customer’s needs plan et peo plan et peo pl e prof it Organizations / People plan et peo pl e prof it Projects / Purchases pl e prof it Products / Services 15 What the Future Holds? Align your offering with your customer’s needs plan et peo ple plan et peo ple prof it Your Client’s Need prof it Your Products / Services 16 Align with your customer needs LEED Cost/Benefit Analysis 17 Align with your customer needs LEED Cost/Benefit Analysis 18 Align with your customer needs LEED Cost/Benefit Analysis 19 Align with your customer needs LEED Cost/Benefit Analysis 20 Align with your customer needs LEED Cost/Benefit Analysis 21 What the Future Holds? Align your offering with your customer’s needs 22 The Lunera Marketplace – A project 23 What the Future Holds? The Future of Green Development - Lessons from the UAE 24 What the Future Holds? The Future of Green Development - Lessons from the UAE 25 What the Future Holds? The Future of Green Development - Lessons from the UAE 26 What the Future Holds? The Future of Green Development - Lessons from the UAE 27 Green Residential Showcase Project Practical projects proving the business case for Green 28 Green Residential Showcase Project Proving the business case for Green is going to be critical 29 Green Residential Showcase Project Proving the business case for Green is going to be critical 30 Green Residential Showcase Project Proving the business case for Green is going to be critical 31 Green Residential Showcase Project Proving the business case for Green is going to be critical 32 Green Residential Showcase Project Proving the business case for Green is going to be critical 33 Green Residential Showcase Project Proving the business case for Green is going to be critical 34 Future Trends Things to consider • Alignment with customers is critical • Cost / Benefit Analysis is going to drive green • Greening of our lives is a long journey • Making green easy for your customer is the biggest thing. 35 Thank You Any Questions? Contact info paul@greenmindinc.com 36