LEED Existing Buildings Process And Issues Burnet D Brown 1 31 2009

LEED-Existing Buildings Presentation…and Benchmark Built Marketing Strategy Status Report

Burnet D. BrownRNV Ventures

Prepared for Benchmark BuiltThursday, January 29, 2009

January 31, 2009 Confidential - Do Not Distribute Burnet-2

Agenda and Recap

LEED-EB O&M Presentation Process, Case studies

Deliverables: Marketing strategies Green Building business Inspection business Marketing opportunity calendar LEED certification preparation

LEED-NC LEED-EB O&M LEED AP exam preparation presentations

Sales GB residential direct mail piece GB commercial direct mail piece Follow-up pieces


Branding YHC Q&A interview and ad Taglines

Communicating with target prospectsWhy build green?Why Benchmark Built?Bi-monthly mailings

“Why Build Green? Reason #27” Purpose: Educate, Excite, Engage

Constant Contact newsletter Summary and Next Steps

Recap


Positioning BenchMark Built, Inc.

Positioning for…Residential marketCommercial marketAll markets

Residential…Building healthy homes and custom green

buildings for the tri-county area. Commercial…

Building high performance commercial greenbuildings for the tri-county area.


Positioning BenchMark Built for “All Markets”

Benchmark Built. For green building.

Benchmark. For green building.

Benchmark, for green building.

Benchmark for green building.


The Urgency of Greening Existing Buildings


“We’re not going to change much very swiftly ifwe don’t pay some attention to the legacy stock

we’ve all inherited.”— Steve Kieran, Architect

Greenbuild 2008 ConferenceBoston, MA, Nov 2008


Why existing buildings are a national priority… Buildings are the biggest producers of greenhouse gases

48 percent of the U.S. greenhouse gases are generated from thecommercial-built environment Transportation produces only 27 percent.

Buildings contribute 50% to 70% of GHG in urban areas. 4.9 million existing buildings in the U.S.

New building projects total just 57,000 (DOE latest data) New construction adds only 1% to building stock annually.

Existing buildings use 25% more energy than new ones. 20% to 50% energy savings potential in existing buildings.


Commercial Buildings

HOMES

NEIGHBORHOOD DEVELOPMENT (ND)

COMMERCIAL INTERIORS (CI)

CORE AND SHELL (CS)

NEW CONSTRUCTION (NC)

SCHOOLS, RETAIL, HEALTHCARE

EXISTING BUILDINGS (EB O&M)

Mixed-Use Developments

Residential Buildings

What is LEED-EB and where does it fit in?


DESIGN CONSTRUCTION OPERATIONS

CORE AND SHELL (CS)



EXISTING BUILDINGS (LEED-EB)OPERATIONS & MAINTENANCE

HOMES



Building Lifecycle - Where LEED-EB Fits in…

BUILDING LIFECYCLE


What is LEED-EB? Key points… LEED-EB applies to 1) whole buildings and to 2) facility management

polices and measured performance procedures. It addresses: Cleaning and maintenance issues (chemicals used in cleaning and O&M), Recycling programs, Exterior maintenance programs, System retrofits and upgrades.

Building Operators and Maintenance team can implement LEED® EB. It does not require a design team.

Certification is based upon actual operating performance… …Not just design expectations.

USP to prospect. “Here’s a way to drive down your costs and increase your net income while

increasing occupant productivity.”


LEED Rating Category Descriptions

HOMES



CORE AND SHELL (CS)



EXISTING BUILDINGS (EB O&M)

New construction and major renovation projects. Commercial and institutional.

For existing buildings seeking LEED certification for the first time.Or for projects previously LEED certified under LEED-NC or LEED-CS.

For office buildings, high-rise residential buildings, government buildings,recreational facilities, manufacturing plants, and laboratories.

Focuses on a) cleaning and maintenance (chemicals used), b) recycling programs,c) exterior maintenance programs and d) systems upgrades.

Tenant improvement market for commercial properties.

Building structure, building envelope and the HVAC system.

Eight (8) categories instead of six (6). High-performance green homes.

Design and build neighborhoods to reduce urban sprawl, protect threatened species,encourage healthy living and promote smart growth.


What is the goal of LEED-EB?

“To maximize operational efficiency whileminimizing environmental impacts.”


What does that mean for your customer?Greater energy efficiency and water efficiency Lower monthly utility bills Lower landscaping costs, less upkeep and maintenance required Lower operating costs Lower tenant costs (selling point to attract tenants) Superior indoor air quality (another selling point) Lower employee absenteeism in green buildings Superior lighting Higher employee productivity in green buildings Higher rents (or greater price point flexibility) Faster lease-up ratesHigher occupancy rates and higher retention rates Security hedge against volatile energy price spikes Higher net income (Higher rents plus lower operating costs!) Better loan terms. Easier to finance. Higher resale value


LEED-EB and LEED-NC Point Comparison

30

16

17

Energy andAtmosphere

8552223514LEED-EB

92

69

Total

719141012LEED-EB O&M

51513514LEED-NC

Innovationin Design(Optional)

IndoorEnvironmental

Quality

Materials andResources

WaterEfficiency

SustainableSites

Category


Competitive advantageEnables builders of existing properties to gain competitive

positioning in markets… Where there are new LEED-NC buildings being introduced or Where they are competing against non-green properties.

Good press.One almost sure way to get your name in the news…

Disproportionate media attention is now seen being given togreen stories and achievements

What does LEED-EB mean for your customer?


History of LEED-EB

January 2002. The pilot version of LEED-EB launched in January 2002. October 2004. LEED-EB Version 2.0, which made mostly minor changes

to clarify the requirements, is launched. 2006. USGBC begins a major overhaul of the LEED-EB rating system. January 2008. LEED-EB Operations & Maintenance (LEED-EB O&M)

launched. September 1, 2008. Beginning September 1, 2008, all projects

registering for LEED for Existing Buildings were required do so under thenew LEED for Existing Buildings: Operations & Maintenance version.

October 2008. Milestone of 2,000 projects registered for LEED-EB,including more than 700 just since the launch of LEED-EB O&M.


January 2008 LEED-EB Changes Commissioning. Dropped the prerequisite requiring commissioning.

Added six optional points for commissioning instead.

Energy. Requires an energy audit and building systems management plan. Water and Energy. Increased the value of strategies related to water and energy.

Boosted points for water efficiency from 5 out of 85 points to 10 out of 92 points. Increased energy points from 23 to 30.

Energy Star. Strengthened the energy-performance prerequisite so that allcertified buildings must achieve an Energy Star score of 69 or higher.

Building Performance. LEED-EB O&M requires that project teams extrapolate abuilding’s annual performance based on a full year of data. …as opposed to only 3 months of energy data under the old LEED-EB

Prerequisites. Reduced the number of prerequisites Removed a prerequisite related to erosion on construction sites.


LEED-EB Evolution


Challenges of LEED-EB

No dedicated funding mechanism.Unlike new buildings which have dedicated funding.

No single individual like the architect in LEED-NC to make the case and drive the process.Many individuals are involved (Cleaning

companies, property managers, people whomaintain the mechanical system, people whoreplace the light bulbs, etc.)


Comparison of LEED-NC and EB O&M

Construction of buildings A one shot deal.

One time certification.

Certification awarded onlyafter construction iscompleted.

Same six (6) categories. Focus on new construction.

Operation of buildings. Ongoing

Recertification every 5 years Or every year (as a best practice).

Certification awarded onlyafter 12 months of data post-occupancy.

Same six (6) categories. Focus on increasing the

efficiency and sustainability ofa building’s O&M.

LEED-NC (New Construction) LEED-EB (Existing Buildings)


A close-up of (Sustainable Sites) the previous page…


Example of a “live” SS checklist


Assemble team Building or facilities manager Purchasing manager Waste hauler Green cleaning manager Facilities wrench-turners … and others as appropriate (next slide)

Perform gap analysis. Assess the building’s current practices relative to the

LEED-EB requirements.

Start early and focus on the prerequisites. Says those who have already gone through the process.

LEED-EB Process

January 31, 2009 Burnet-26

Building Owner(s)

Facilities Manager

Building Users

Energy Consultant

Purchasing Manager

Waste hauler

Green Cleaning Manager

Project Manager

FacilitiesWrench-Turners

Mechanical Engineer

Construction Contractor& Inspector

Commissioning Agent

Electrical Engineer

Interior Designer

Architect

Landscape Architect &Site Planner


Conventional Process

Designed to meet minimumcode standards

Specifications established tomeet performance andquality standards.

Construction is administeredto verify and documentcompliance.

Designed to meet optimizedenvironmental and efficiencyperformance standards.

Specifications established tomeet expanded quality andperformance standards.

Documentation and 3rdparty verification forconstruction and operationalcompliance.

Green Building Process


1

2

3

4

5

Establish baseline. Establish a benchmark ofthe existing site.

Identify proposed changes and the benefitsexpected by implementing the changes.Evaluate ROI.

Implement the changes.

Measure, validate and submitbuilding performance dataresulting from the changes.

Certify building

Recertificationevery 5 years

Steps to LEED-EB Certification


LEED-EB Process - Time Investment Required to Certify

Best practice is torecertify annually15 to 21 months…

Full year of building performancedata required for LEED-EB O&M


On the other hand…

Staff size. It depends on the size of your dedicated staff. …and how much that staff can focus on LEED

Previous page’s chart. 15 to 21 months. Getty Art Center. 5 months (before EB O&M in play).

Staff put a lot of other responsibilities on hold to focus on theGetty Center’s first certification.

Went for LEED-EB Basic certification followed by LEED Silver Chose to minimize capital improvements.

Armstrong World Industries. 1 year (also before EB O&M) Went for Platinum LEED-EB. Elected to minimize capital improvements.


On the other hand (continued)…

…Some projects will take even longer 18 to 30 months (1.5 to 2.5 years) or longer.

Required for projects that need more significant work like greater capitalimprovements.

Key areas requiring significant chunks of time include: Thoroughly identifying the problems Implementing solutions to problems Tracking the performance of those solutions

The future. Time investment required will increase.

LEED-EB O&M requires that project teams extrapolate a building’s annualperformance based on a full year of data…

…rather than on only three months of energy data under the old version.


LEED-EB Strategies Go for the easiest credits first

Recycling waste Green cleaning Purchasing (EPP) environmentally preferable products

Different strategies for different organizations Getty Art Center. Go for “Basic” LEED certification first

Evaluate, then move up the certification ladder progressively. Getty later received Silver Certification First project to earn LEED-EB rating

Adobe Towers (Adobe Systems). Go for a high level of certificationfrom the get-go.


LEED-EB Cost Reduction Strategies Cookie cutter strategy

Apply the same approved LEED procedures and policies tomultiple-buildings.

Campus-wide. Buildings under the same management.

USGBC Portfolio ProgramAllows building owners to submit documentation just once

for requirements, such as: Purchasing policies that are consistent among all of their

buildings.

CB Ellis is currently using this approach for 100 buildings


Lessons Learned for LEED-EB Involve key people.

Refer to Slides 25 and 26. Involve several people, including, at a minimum, the purchasing manager, the

waste hauler, the green cleaning manager, and the facilities wrench-turners, aswell as the facilities manager.

Be prepared with information. Start the process with a lot of information already assembled.

Stay on top of tracking. Even after the first LEED-EB certification is completed, facilities teams should

continue the tracking they implemented during the first performance period. Continuous improvement. Continuously look for ways to improve.

Incorporate a continuous improvement component into the planning andmanagement process.

Use tracking systems to providing ongoing monitoring, evaluation, feedbackand improvement.


Lessons Learned for LEED-EB (Continued) Tracking. Monitoring. Measuring. Monitor

performance. Assign goals to specific individuals.

Goal setting. Set goals and get collective buy-in to those goals. Present first cut goals, distribute them for comment, make

revisions then publish and distribute. Accountability.

Assign goals to specific individuals. Tie the pay of facilities’ team members to LEED-EB

performance.” This creates incentives to compile data andtrack it so that it’s easier to pull all the data together whenthe time comes.

LEED Existing Buildings Process And Issues Burnet D Brown 1 31 2009

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Transcript of LEED Existing Buildings Process And Issues Burnet D Brown 1 31 2009