Models include Energy Service Agreements and Energy Savings Performance Contracting.
In October 2011, Capital E for the Energy Foundation released the “Energy Efficiency Financing – Models and Strategies” report. This report summarizes energy efficiency financing models and strategies that are applicable to industrial, commercial and residential sectors. In preparing this report, Capital E ran a meeting with leaders from banks, industry organizations, project developers, and regulatory agencies. The collaboration led to the design of new mechanisms for energy efficiency financing.As stated in the report, the most cost-effective energy efficiency investments in the United States would be around $150 billion a year. With this amount, within a decade, American residents and businesses would save $200 billion annually and create over a million full time jobs. Current financing, however, totals only $20 billion, leaving approximately $130 billion of cost-effective potential investments unfunded. To close this gap, energy efficiency financing must become more mainstream and there must be some sort of standardization, such as green appraisal standards and performance data, for banks and financial institutions to compare. Capital E has included multiple models and strategies in their report that will help create pathways to scaling energy efficiency financing from $20 billion to $150 billion annually. Models:The models described in this report are analyzed according to funding sources, program structures, limits to scale, repayment vehicles, and project risks. The models considered include:
Many advantages of these models include facilitated collaboration across numerous governmental departments, job creations, reduction of project risks, and removing of split incentives. Disadvantages of a few models include state-level authorizations, funding limitations, higher transaction costs, and longer processes and negotiations.Strategies:The strategies in this report consider applicable building sectors, applicable models, level of establishments, growth potential, advantages, and disadvantages. The report includes analysis of the following financing strategies:
Intermediary Aggregated Scale Purchasing
Revolving Loan Fund
Preferential Loans
Risk Reallocation
E-Loan
Point of Purchase Interest Rate Buy-Down
Re-Align Incentive Structures.
Certain strategies, such as unsecured consumer loans, have advantages like easier access to capital but have disadvantages such as higher interest rates.The full report provides an overview of energy efficiency financing models and strategies. It is important to understand and spread this knowledge because increasing energy efficiency financing will help businesses and residents reduce their energy costs, create more jobs, and improve air quality.View the full report here to look more closely at the models and strategies included.
12 billion gallons of municipal wastewater effluent is discharged into the ocean each day.
Is it possible to meet our future water supply needs through the reuse of municipal wastewater? This is a question the National Research Council (NRC) had in mind when the Assessment of Water Reuse Committee was formed by the NRC’s Water Science and Technology Board. Since wastewater is discharged into the environment in significantly large quantities—approximately 12 billion gallons of municipal wastewater is discharged to an ocean or estuary each day—the committee critically assessed the practicality of reusing water to meet future supply needs by analyzing technical, economical, institutional and social issues associated with water reuse.
This isn’t a new idea, as water reuse is a very common practice within the United States for irrigation and non-potable applications; however, as the NRC’s report states, using reclaimed water to augment potable supplies has significant potential for helping meet future needs. The EPA previously estimated the extent of water reuse in the United States; as of 2002 Florida was reusing the largest quantities followed by California, Texas and Arizona. Over 50% of the reclaimed water in Florida and California was used for irrigation.
So then the question is begged, how will people react to drinking recycled wastewater? Although it sounds unsanitary, with the right wastewater reclamation technology and monitoring systems, the potable reuse of highly treated reclaimed water becomes worthy of consideration. The committee found that the current technology is very advanced with room for improvements but no real limitations. To help address public concerns about safety of reuse and the effects on human health and the environment, the committee proposed 14 priority research areas within two categories: health, social and environmental issues; and performance and quality assurance.
Several advanced treatment facilities in California and throughout the world provide examples of successfully managed systems that are expanding local water supplies. In Southern California, Orange County Water District’s Groundwater Replenishment System recycles wastewater using advance treatment processes. Half of the treated wastewater (about 35 million gallons a day) is used to recharge the local groundwater basin which supplies potable water to the county. Elsewhere, Singapore’s NEWater system recycles wastewater that subsequently meets 30% of the nation’s water demand. Currently only a small percentage of NEWater is being used to augment potable supplies.
As the world’s water supply decreases and as population increases, the need for water reuse becomes even more vital—especially for water-limited regions. Although reuse alone will not address the nation’s water challenges, municipal wastewater reuse has the ability to significantly increase the world’s water resources.
The adoption of green building systems and technologies is now widespread among California’s premier office buildings. As measured by our Green Building Barometer, 54% of Class A office space in the state is now classified as green (defined as either Energy Star or LEED certified). This achievement is a striking improvement over the situation just three years ago, when only 26% of Class A space was certified green.
With the construction of new office buildings at an all time low, the increase in green space largely reflects the upgrading and certification of existing buildings. LEED certification is becoming almost mandatory for Class-A office buildings in the financial districts of the major cities:
In San Francisco the Transamerica Pyramid recently achieved the highest level of certification with LEED Platinum status.
Building codes in the state are now greener, so that where new construction does occur, green certification is now very likely to follow, such as at the Tustin Centre in Orange County.
The adoption of greener operations in commercial buildings is being aided by new tools and technologies that help building owners to go green. For example, in October the City of San Francisco and the Business Council on Climate Change published a Green Tenant Toolkit for commercial buildings. The toolkit uses many of the green leasing tools and strategies developed by the California Sustainability Alliance, and is part of a suite of initiatives that also includes green financing packages and legislative changes designed to encourage greener buildings.
Now Accepting Applications for the 2011 Sustainability Showcase Awards.
We are now accepting submissions for the 2011 Sustainability Showcase Awards! Now in its fourth year, the Sustainability Showcase Awards recognize the successful sustainable policies, programs, practices and technologies implemented by leading organizations in California.
We are seeking leaders in four categories:
Commercial Buildings: Any organization whose primary mission involves ownership and management of one or more commercial properties in California.
Multifamily Housing: Organizations that own and/or operate portfolios of one or more multi-family housing buildings in California.
Local Government: Cities, counties, joint powers authorities, special districts or other types of local governmental entities formed and operated pursuant to California state law that have a role in implementing California’s environmental policies.
Water Agencies: Water and/or wastewater utilities that provide wholesale and/or retail services to California residents and businesses.
Application forms can be downloaded here. Submissions are currently being accepted and will be received until midnight on January 20, 2012. The winning entries will be notified February 2012.
Green buildings first emerged in the late 20th century and are consistently being recognized within today’s market as positive additions to the real estate industry. Greater energy efficiency not only increases a building’s value by reducing the property’s carbon footprint, but also saves on overall operating costs. Despite the obvious environmental and economic savings, the real estate industry is currently lacking a consistent mechanism to account for energy efficiency characteristics in the process of determining property value. This gap leads to imprecise and often inconsistent valuations of commercial properties.
A green real estate appraisal standard would help close this gap by measuring the efficiency and sustainability value of commercial properties, thereby attaching increased asset value to higher-performing buildings. This would encourage banks to release capital for more energy efficiency projects, since it would be easier to assess property value based on money and energy savings. Since capital costs are the main barrier for efficiency upgrades and retrofits, creating a standard and getting banks on board would assist in creating new sources of funding in the efficiency arena.
A building performance data tracking system would also give appraisers a resource for comparable projects. Stakeholders from energy, financing, appraisal, and real estate service industries are currently lacking consistent data about the monetary and energy efficiency benefits of higher performing buildings. A green appraisal standard will provide these stakeholders with a consistent methodology to assess properties’ energy efficient and sustainable features in determining market value. This improved standard and data system would also provide incentives for greater investment opportunities into efficiency. Since green building has become such a positive trend, why not add standards that will boost funding sources for efficiency projects and bolster green jobs?
Currently, the U.S. Green Building Council, Natural Resources Defense Council (NRDC) and the Real Estate Roundtable’s Sustainability Policy Advisory Committee (SPAC), have made it a top priority[1] to establish a green real estate appraisal standard. Through a public comment process, they continue to press the Obama Administration to use their existing legal authority to establish these green standards.
Let us know what you think about a green appraisal standard.
Thomas Properties Group ranks first in environmental performance among publicly traded real estate companies in North America by the Global Real Estate Sustainability Benchmark (GRESB).”
The GRESB initiative was created in 2009 to assess the environmental and social performance of public and private real estate investments. The overall goal is to reduce the real estate sector’s carbon footprint while creating shareholder value.
With a #1 ranking in North America, it is no surprise that Thomas Properties Group has also received the coveted 2011 Calibre Environmental Award. This award, presented by the Calibre Committee in concurrence with the International Interior Design Association, seeks to recognize the outstanding commitment to environmental stewardship of organizations that are not only an integral part of the design community but also have a profound impact on society as a whole.
TPG’s mission is “to make a positive and profitable contribution toward a sustainable future.” By following this mission, TPG has continually been at the forefront of sustainability development by focusing on their product, customers, and investors to reduce operating expenses, reduce carbon footprints, and improve occupant productivity. In 2008, TPG received our Sustainability Showcase Award, which recognizes leaders that are paving the way towards California’s clean energy and low carbon future.
Thomas Properties Group is committed to greening their entire portfolio of existing buildings and new developments, and continues to coordinate green efforts companywide with the help of Daniele Horton, the company’s full-time Sustainability Manager. Daniele is one of our Green Building Advisors, sits on the USGBC-LA Board of Directors, and chairs its Existing Buildings Committee. We are proud to have her as part of our team and want to congratulate Thomas Properties Group on receiving the much deserved GRESB #1 US ranking and the 2011 Calibre Environmental Award!
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