The Mayor’s Task Force Report On Existing Commercial Buildings divided their recommendations into four themes.   In this final post of our series, we address the final theme, “Lead By Example.”

The theme speaks for itself.  The task force essentially states that the city must institute change in municipal buildings before it can insist on changes in the private sector.   I emphatically agree, if for no other reason than the government needs to understand how the systems work before enforcing their use.  San Francisco, under Chapter 7 of the Environment Code leads by example, and there are other examples.  The recently launched GreenFinanceSF, a Green Finance program from the SFPUC, is a direct answer to the task force report.  Admittedly, we missed it in our last post on the topic, but we’ve updated the post, and we will discuss the program in the future.  Please check out the program, it looks great.

Some argue that the private sector is more adept to implement change.  The belief that the private sector will lead the way, however, is misguided.  The private sector has had years to renovate existing buildings, but the implementation is only on the fringe.  Below, please find a quick timeline as to why this is.

The 1960’s and ‘70’s saw a huge surge in societal awareness of sustainability.  This was due to hippies, the oil embargo, and in my case, Ranger Rick, Woodsy Owl, the Tearful Native American, and John Denver (among others).  Even then, these advocates addressed pollution and environment.  Sustainability in construction was considered a fringe movement for those who could afford it.  Then, sustainability lost momentum when the price of oil tanked in the 1980’s.

Even when oil prices rose in the ‘00’s, and analysts touted life-cycle cost savings, private developers were unwilling to pay a “green premium” (the cost difference between a green building and a standard building).  But in 2001, citing life-cycle costs, energy independence, and social consciousness, California and Oregon required that all new municipal buildings meet high environmental and energy efficiency standards.  Other states including Washington, and New York followed, and in 2003, the GSA mandated that all new federal buildings meet LEED Silver standards.   Other states including Pennsylvania, Massachusetts, and Florida joined the green movement.

With such huge markets mandating green, economies of scale took over.  To answer the large orders from state and the federal government, manufacturers produced higher volumes of green products thus reducing the price. The municipal contracts created a new green economy, and materials such as denim insulation (pun intended) emerged as viable products.  New companies formed and new technologies were invented to answer the call for green supplies.  Large contractors altered their methodologies and trained their workforce for the green future.

Legislating incentives to encourage green building helped too.  The government, with the help of the taxpayer, led all of this.  Let’s be clear.  If it were not for government, the green building movement would still be for the eccentric fringe. Period.

I’ve said many times that political parties are a liability to progress.  There is no room for partisanship in promoting sustainability and green building.  Energy independence is a matter of national security, and as the gulf oil spew shows, clean energy is a matter of protecting our domestic economy (e.g. keeping fisheries open, generating new construction, or creating auto jobs building electric vehicles at the NUMMI plant).   There is nothing wrong with government leading the way in green building and energy efficiency.  To the contrary, it must be one of their highest priorities.  Government involvement in sustainable development creates jobs, and makes us a stronger, more secure nation.

The task force report is very good, but now the hard part begins.  It has been six months since the report was issued, and I have not seen any new legislation passed or proposed.  GreenFinanceSF is a great program, but that was in the works long before the task force report was issued.  According to the San Francisco Examiner, the Mayor was going to propose new legislation, but I haven’t heard about it since.  I’m happy to help if that’s what it takes, but let’s keep up the momentum.

In Part One of our analysis of the report from the Mayor’s Task Force on Existing Commercial Buildings, we discussed the task force’s four themed approach to improving the energy efficiency of existing commercial buildings: 1) “maximize transparency,” 2) partner with the private sector, 3) attract game-changing capital, and 4) lead by example.  We now turn to theme two, “partner with the private sector.”

As discussed in Part One of this post, the transparency mandates suggested by the task force, and/or mandated under AB 1103 will force private industry to report energy use.  These reporting requirements will generate market forces that push buildings to higher energy efficiency.  But, will developers, owners, and tenants really compete in a race to the top of efficiency based on AB 1103 alone? The answer is “probably not,” or maybe I should say, “probably not quickly enough.”

Sure, required energy reporting will occur, but the desired reduction in energy use will not manifest rapidly.   Without government mandate and assistance for developers, owners, and tenants, the measures suggested by the task force, including mandatory energy audits, will create resentment and real hardship for businesses.  Also, the local taxpayers might not be happy with the incentives and rebates suggested to assist in deferring the cost (though some of the underwriting will come from state and federal grants).

The task force suggests two low-cost “tools” to rapidly generate efficiency results and ease the private burden of implementing energy efficiency.  The first suggestion is a “no-brainer,” but the second might not be as simple.

The first tool is the “Green Tenant Toolkit” (“GTT”).  Rather than simply mandating energy efficiency, the GTT proposes a “toolkit” with suggestions for developers, owners, and tenants regarding “best practice recommendations, a model green lease, [and] a standardized checklist to identify green features of spaces for lease.”  Also, as a part of the “partner with the private sector” theme, the task force suggests a public/private (dare I say) task force to come up with the language and suggestions for the GTT.  The proposed GTT is a quick and easy resource, and one that will ease the burden of implementing energy efficiency measures.

The second tool suggested by the task force is “unilateral submetering.”  This strategy proposes allowing tenants or landlords to implement submetering at the requester’s expense.  This is risky, and not completely thought out. First, this option likely already exists for a majority of tenants and landlords, and second the suggestion ignores the issues that arise from such a policy.

For example, unlike other tenant-level capital improvements, submetering affects the operating costs of other tenants.  Generally, a building’s utility costs are averaged, and then allocated to tenants based on square feet.  If a large tenant has a significant amount of space that is below the average energy use in a building, and that space is removed from the building energy calculation, the average cost will rise for other tenants.  Conversely, a landlord, at the bequest of other tenants, may submeter a power-sucking data center.  This action will lower rent for a majority of other tenants, but send operating costs for the data center through the proverbial roof.  It’s not quite that simple, but the example above is closer to the reality than the task force lets on.

To achieve the equity the task force seeks, unilateral submetering will need further analysis, or testing before city-wide implementation.  Perhaps if a tenant submeters, a landlord could be forced for one year to keep the submetered tenant in as part of the calculation for the building’s energy use averages until other tenants can take action to either lower energy costs or also submeter?  Or perhaps the city will limit the amount a landlord can raise an energy charge thus encouraging energy efficiency?  Perhaps other tenants will just have to “get with the program,” submeter, and increase their efficiency to realize ROI.  There are no easy solutions to this question, but submetering is an effective tool to reducing energy use, and is required for any effective energy efficiency policy.

The task force’s next suggestions – including the suggestion of a government fund to cover expenses for implementation of energy efficient technologies – will be covered in part three of our analysis.  Stay tuned…

Hi All,

A friendly reminder that I am presenting in one of three great webinars presented by the State Bar of California.  The webinars will be on May 12, 19, and 26.  If you can’t make these dates, you can register by the date of the event, and listen any time in the three months afterward.

The first webinar is “Sustainable Development: Moving Beyond Green Building Toward Sustainable Building and Sustainable Master Planning” I will discuss alternatives to LEED and the many factors interested parties should consider when designing and developing sustainable buildings and neighborhoods.  Jeff Conner (Conner & Associates), Matt Burris (CTG), and Patricia Chen (Miles Chen Law Group, P.C.) will join me  in a roundtable discussion that will discuss LEED as well as other ways to develop a sustainable project (i.e. ICC, GreenPoint Rated, or independent assessment).  Each approach requires unique planning and permitting.  More information can be found by clicking here.

Our webinar is the first of a series.  There are two more webinars that are really worth checking out.  The first is , “Sustainable Development: Charting a Course to a Sustainable Future Through CEQA Compliance and Effective Climate Action Planning – Demystifying AB 32 and SB 375″ and the second is “Sustainable Development: The California General Plan Law and General Plan Updates: The Future of Sustainable Development”

We hope to catch you online at these events!

Geof Syphers is the Chief Sustainability Officer at Codding Enterprises, developer of Sonoma Mountain Village, a One Planet Communities development in Rohnert Park, California that aims to be close to net zero…as a village!

We’ve written about Sonoma Mountain Village (SOMO) before.  Click here to review that post. Now, as an Earth Day special, please enjoy the interview I conducted with Geof a few days ago.  Click here for the full text, or just click on the “Interviews” tab at the top of this page.

The thing that makes the interview so relevant to Earth Day is SOMO is a One Planet Community.  This means that if every community on the planet lived like the residents in SOMO, we would only use the resources available on one Earth.  As it stands now, if everyone on the planet lived like the rest of the United States, we would need multiple Earths to support our lifestyle! (Click here to take a fun, albiet non-scientific, quiz to check your sustainability footprint).

So, Geof, and the group at Codding are onto something.  Enjoy the information in the interview, and have a great Earth Day!

Serious Materials, a California-based company, just announced an agreement with Johnson Controls (NYSE: JCI) to “super-insulate” over 6,500 windows as part of a $13.2 million energy efficiency retrofit program for the nearly 80 year-old Empire State Building.

Note, I wrote they will “insulate” the glass, not replace it.  According to Sustainable Materials, here’s how it works:

“The existing glass of the building’s 6,514 double-hung windows will be removed from the window frames, separated, and cleaned in the processing space. New super-insulating IGUs [Insulating Glass Units] will be produced using the old glass panes, new spacers, suspended coated film, and special gas fill [argon-krypton gas mixture]. The IGUs will be re-installed into the existing window frames.”

These efforts alone will directly reduce energy costs by over $400,000 per year, and the remarkable fact is Serious Materials is using the old glass!

The Empire State Building project is a model of what needs to happen across the nation.  Old buildings are highly inefficient, and provide the greatest opportunity to gain real energy savings.  The Empire State Building plan calls for eight separate measures in lighting, insulation, electricity controls, HVAC, and tenant training and incentives.  Once all measures are complete, the Empire State Building retrofit team predicts a 33% reduction in cooling load, and a reduction of peak energy load by 3.5 megawatts (yes that’s just the reduction).  The retrofit team also predicts a 38%reduction in total energy use and an eventual energy cost savings of $4.4 million / year.  How about that for ROI?

Click here to find out more regarding the Empire State Building’s eight measures

Click here for the press release from Serious Materials

Editor’s note: Don’t miss tonight’s Clean Tech Event at McCormick and Kuleto’s. Click here for more information

I have a core belief that one can not complain unless one provides a solution (that is certainly part of the reason for this blog). Perhaps a number of people went to Al Gore with the same complaint.  Inconvenient Truth was heavy on problems and light on solutions.  Well, Al Gore’s new book, Our Choice: A Plan To Solve The Climate Crisis, is all about solutions, and it is a must read.

The central theme of Gore’s work is that civilization must price carbon emissions based on the effect they have on humanity.  There are other solutions Gore provides, but without monetizing carbon emissions, Gore’s plan falls apart.  It’s not a new concept (cap and trade), and Gore admits that.  If you don’t believe in cap and trade, the book is still a very valuable read.  There is something for everyone.

The book is very well written, and easy to read – which says a lot given the sometimes technical and dense content.  Gore is less colloquial than Tom Friedman (click here for my review of Hot, Flat, and Crowded) whose style sometimes loses efficacy to gain mass appeal.  Gore is more academic, but concise.  And on top of that, it’s just plain interesting.  As with Inconvenient Truth, there are graphics and photos to keep the book flowing through the technical parts.

The first half of the book systematically establishes the foundation of the problems we face (a quick summary of Inconvenient Truth), and provides options for the solution.  Mr. Gore addresses the issues with each sector of industry: energy, manufacturing, transportation, farming, housing (though there is really no section on green building per se) and then lays out all of the options for a solution (solar, wind, geothermal, nuclear, carbon capture and sequestration).

Our Choice is the kind of book one will use as a reference.  Not only does the book provide significant policy arguments, it backs up the positions with facts and science (and a healthy analysis of psychology).  The real take-away is the book drills down to risk/benefit analysis for each approach to solving the climate crisis.  Is nuclear energy really an option?  Can carbon capture and sequestration work for coal-fired power plants?  Our Choice asks the reader to make the choice based on the well-defined pluses and minuses for each technology.

The second half of the book focuses on the challenges of convincing the populous and governments that change must occur now.  Climate change detractors and some members of the Republican Party may take issue with some of this subject matter.  The first half of Our Choice is generally non-partisan, but the second half contains some chapters that take on detractors – many of whom are Republican.   A lot of the content in these sections is re-hashed argument, but it needs to be aired and recorded.  In so doing, the differences of opinion are laid out, and some progress can be made toward a political solution.

Mr. Gore has stated repeatedly that our need to create renewable energy is not just a matter of global warming, it’s a matter of national security.  I agree.  As someone who finds political labels a liability, I suggest we consider at least that rationale.

Al Gore does that and more. Our Choice is a great book to help anyone understand the diverse options we face.

Governor Schwarzenegger signed AB 510 on February 26, 2010 (Click here for full text of AB 510) (Click here for press release and video). We covered the basic elements of the new law in Part 1 of our coverage last week (click here for that post). Now, we turn to some other elements of the law… some of the fine print, if you will…

The law balances the interests of utilities, customer-generators, and non-participating customers. (This balance, and the fact that there is no discernable impact to the General Fund, are likely the reasons the bill passed the Senate by a nearly unanimous vote.)    In addition to lowering the proposed cap from 10% to 5%, an example of concessions to utilities is found in Section (3)(l).  That section requires that customer-generators pay the Department of Water Resources for all charges that would otherwise be imposed on the customer had they not entered the net-metering arrangement.

Another significant concession is found in Section (5)(B).  Under that section, the utilities can use the energy provided through net-metering arrangements toward the Renewable Portfolio Requirements (outlined in Public Utilities Code Section 399.15 and 387).  Under previous net-metering law, utilities were not permitted to count net-metering toward these obligations.  Now, utilities have a chance to meet the aggressive target of generating 33% of their energy from renewables by 2020.  (The utilities are far from reaching the Renewable Portfolio Requirements of 20% of energy from renewables by 2010).  If California residents and businesses continue to install solar and wind power generation, the utilities have a chance to meet the portfolio requirements, but the current 5% cap will have to rise again.

On the consumer side, there are very reasonable concerns that net-metering raises the energy bill for non-metering customers.  To assuage those concerns, the bill establishes a rate-setting commission that will set net-metering compensation rates and provide a report detailing 1) the market effects of net-metering and co-energy metering, and 2) how the authority’s rate schedule ensures consumers who don’t enter net metering arrangements pay the same for power that customer-generators pay.

AB 510 reflects a state leading the way in establishing energy independence.  It is great legislation now because it doesn’t tap into the General Fund, and it encourages private businesses (e.g. Solar City or Renewable Funding, LLC).  The law is another step forward that keeps California as a leader in United States renewable energy generation.

My friends over at the Kellogg Alumni Club are at it again with another great clean tech event. On Wednesday, March 17 the group will host a panel discussion on two emerging clean industries: transportation and energy – including nuclear power. Can that, too, be clean?

The event is open to the public, and it will be a great way to learn and network with leaders. Ideas will definitely be flowing. The top-shelf presenters and panelists include:

Rod Diridon - Clean Tech Rail Pioneer, Executive, Political Leader, and High-Speed Rail Authority Board Member
Bob Garzee - Clean Tech Automotive Transportation Pioneer and Entrepreneur
Jeff Hamel - Energy Researcher and Clean Tech Advocate

Networking, passed hors d’oeuvres and a cash bar start at 6pm, and the presentations and discussion will go from about 7 – 8:30 pm. You couldn’t ask for a better setting: the beautiful McCormick and Kuleto’s – right on the water. See you there!

Click Here For More Information And For Reservations.

Also, remember Kellogg’s San Jose clean tech event with different panelists, Thursday, April 1. Click here for more information on that!

AB 510 (full text here) passed both the Senate and Assembly, and Governor Schwarzenegger says he will sign the bill into law.  The bill raises the cap set on the number of homes and businesses that can take advantage of net energy metering.  Yes, there’s a cap!  The utilities don’t want “customer-generators” producing power without limit, and the government appears concerned the customers will somehow tip the “balance of power” between customer-generators and utilities (yes, that’s an energy pun).

At its core, the bill states utilities are not required to issue permits and enter agreements with “customer-generators” (residential and commercial solar and wind power producers) beyond 5% of the utilities’ aggregate customer peak power demand.  The previous cap was 2.5%.

The legislation also addresses co-energy metering.  Co-energy metering is an arrangement between publicly owned utilities and customer-generators who produce between 10kw (50kw for wind) and 1MW.  These generators are compensated based on the time of energy use and generation.

On the other hand, standard net-metering arrangements are for customer-generators who produce 3 -10kw.  The rate at which net-metering customers are compensated is either a “time of use” model such as that with the co-energy metering producers, or a “baseline” model.

A ratemaking authority (also described in the bill) sets the rates for compensating customer-generators who have an energy surplus at the end of the year and follow the baseline model. The primary goal for the rate-making authority is to set a price that ensures non-participating customers pay the same for energy they would have otherwise paid had no net-metering been used.

To its credit, the bill allows the ratemaking authority to compensate net energy producers for the value of the electricity itself, AND the value of the renewable attributes of the electricity.  This little nod allows net energy producers to receive a bonus if the renewable attributes of the energy production add indefinite or unforeseen benefits (Cap and Trade anyone?)

Congratulations (I hope not premature) to AB 510 sponsor, Assembly Member Nancy Skinner (14th District).  The bill was proposed last year as AB 560 (click here for more of that story), but it died in committee.  We’re glad to see it is on its way to the finish line this time!

Editor’s Note: Stay tuned for Part 2 of this post that will discuss other requirements and considerations in the bill. UPDATE: Click Here For Part 2

Stadiums.  They’re large, and they’re empty for large amounts of time.  Because of this strange dichotomy, stadiums are incredibly expensive to operate and maintain.  They are also expensive to build.  Construction of the new Yankee stadium cost $1.5 billion.  All that money and a dearth of environmental considerations. Why?!

A few new stadiums are showing better judgment.  The Washington Nationals started the trend a few years ago with the first LEED Silver professional stadium, (more info here).  The Florida Marlins are joining that club with a LEED Silver stadium of their own.  Other venues are showing a commitment to the environment.   The Phoenix Suns, NY Giants and Jets (VIDEO!), NY Mets, San Francisco Giants, and New England Patriots either have or plan environmental efforts or LEED qualifying measures for their stadiums.  The EPA is even helping some of the projects (More info here)

Let’s not forget these efforts are not always smooth.  Remember the labor controversy around the green roof at the Target Center in Minneapolis? (I’m still looking to see how that was resolved – stay tuned).

But, more to the point, public money is regularly required to build these new structures, so implementing green measures should be a required part of the package.  Generally, states are moving to require green municipal buildings, and the federal government already requires it.  How did the new Yankee stadium get city dollars and federal tax breaks and still end up a relic of inefficiency?  It’s disappointing and short-sighted.  The Federal government and many states have long required that large structures for the public must include sustainable measures.  It’s time all publicly financed stadiums get included.  I’m not saying every stadium needs to meet LEED standards, but at 1.5 billion, I’m guessing they could have found some room in the budget for waterless urinals or solar panels. C’mon Yankees, you lead in everything else!

Congratulations to the New Orleans Saints!!  Pitchers and catchers, report in seven days…

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