Scott Kessler, NYSERDA Watch a video of this presentation and more at http://www.rebny.com

1. NYSERDA Assistance in GGBP
Compliance
Scott Kessler
NYSERDA Project Manager
NYSERDA Project Manager
January 28, 2011
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2. What is NYSERDA?
What is NYSERDA?
• Public benefit corporation
Public benefit corporation
• Primarily funded by System Benefits
Charge on electric and natural gas bills
Charge on electric and natural gas bills
Mission Statement
Advance innovative energy solutions in ways that
gy y
improve New York’s economy and environment.
NYSERDA's Vision Statement
To serve as a catalyst – advancing energy innovation and
To serve as a catalyst advancing energy innovation and
technology, transforming New York’s economy,
empowering people to choose clean and efficient energy
as part of their everyday lives
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3. System Benefits Charge (SBC)
System Benefits Charge (SBC)
• Regulatory Order of the NYS Public Service
Commission
• NYSERDA ‐ state‐wide administrator
• Public purpose goals: energy efficiency,
cleaner environment
cleaner environment
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4. Energy Efficiency Portfolio Standard (EEPS)
E Effi i P tf li St d d (EEPS)
•New gas funding
•Additional electric funding
•Additional electric funding
•Benchmarking and Operations
Efficiency Program
•Industrial and Process Efficiency
•Industrial and Process Efficiency
•Including Data Centers
•Additional utility based incentive
•Additional utility‐based incentive
programs
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5. Focus on Commercial Real Estate
F C i lR lE t t
Drive portfolios to
Provide benchmarking
invest in energy
tools and support
efficiency using
efficiency using
sector‐specific needs
NYSERDA programs
Identify poor Track improvement
performing properties
f i i against 2015/2030 and
i 2015/2030 d
for program support NYSERDA goals
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6. Why Invest in Sustainability?
Wh IWhy Invest in Sustainability?
t i S t i bilit ?
Increase rent / decrease vacancy
Enhance green image
Decrease operating costs
Comply with government mandates
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7. Rent Spreads : Class A & B Office Space
Rent Spreads : Class A & B Office Space
Class A Rent Class B Rent
Source: “Office Market Trends New York City, Grubb & Ellis, Q2 2008.
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8. A Comprehensive Approach to Strategic Investments
AC h i A h t St t i I t t
Portfolio‐wide
approach h
Improved
Improved
NOI
Improved Targeted
efficiency investments
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9. Focus CRE Participation
F CRE P ti i ti
Owners in Program: 32% of NYC Market
g
139 M SF Participating*
p g
of which: 59.5 M SF Benchmarked
Portion of NYC Market
Portion of NYC Market
Benchmarked 14.0%
Energy Audit 2.6%
Lease Analysis 2.0%
*Not including additional 2M SF in NY State,
of which 1 M SF benchmarked
of which 1 M SF benchmarked
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10. Focus CRE Lease Analysis Tool
F CRE L A l i T l
FOCUS CRE LEASE ANALYSIS REPORT
D t t t
•Demonstrates costs and d One New York Avenue
Project and Building Overview
Project
Tenant Opex Clause Breakdown
By Rentable Building Area
Vacancy
returns according to
2.6%
Number of Measures 6
Cost of Measure Net of Subsidies Fixed Factor
$ 2,888,110
and Grants
Subsidies and Grants $ 163,139 Escalatable - Capex
Passthrough
Annual Cost Savings $ 478,046
Escalatable - No
Capex
each lease
hl
97.4%
97 4%
Owner Financial Results
Annual Owner Cash Flow 10 Year Composition of
Owner Cash Flow
•Present value of future
$600
Current Escalatable
$500
7.9% Leases
$400
Fixed Factor Leases
Thousands
$300 Electric Rent Inclusion
31.1%
savings as well as time
i ll ti
$200 Capex Passthrough
57.5%
57 5%
T
$100 Vacancies
3.5%
$0 New Escalatable
Leases
Year
frames for ROI Returns*
Metric
Net Present Value
Savings
Increased Asset Value
3 Year 5 Year
$ (2,020,310) $ (1,472,736) $
$ 1,170,406 $ 1,316,322 $
10 Year
315,301
5,345,705
Simple Recovery
Metric
Savings Only
3 Year
7%
5 Year
14%
10 Year
85%
F t t d
•For tenants and owners
Total Net Present Value $ (850,000) $ (155,000) $ 5,660,000 Savings and
Capex 27% 47% 128%
Internal Rate of Return -10% 2% 20% Passthrough
Return on Capital -29% -5% 196%
* Net Present Value, Internal Rate of Return, and Return on Capital include the capitalized
value of cash flow during the last year of each term in their calculations.
•Publicly Available Tenant Financial Results
Returns
Metric
Net Present Value $
3 Year
525,000 $
5 Year
860,000 $
10 Year
1,135,000
Implementation Contractor for NYSERDA's Focus on
Commercial Real Estate Program: HR&A Advisors, Inc.
For more information, call 1‐866‐NYSERDA, or email:
FocusCRE@nyserda.org
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11. NYSERDA Program Structure
NYSERDA P St t
Project
Project New
New Audit
Audit FlexTech/
FlexTech/
Identification/ Construction Program Technical
Energy Study Program Assistance
Program
Existing Facilities
E i ti F iliti
Project Program
Implementation
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12. FlexTech
Fl T h
Objective: Provide customizable, fuel neutral cost‐shared energy studies
Objective: Provide customizable fuel neutral cost‐shared energy studies
Cost Share Incentive Cap
– 50/50 – energy related
related – Con Edison: $1 000 000
Con Edison: $1,000,000
portion Upstate: $500,000
Areas of Focus
Areas of Focus
• Feasibility Studies • CHP/Renewables
• Energy Master Plans • Load Curtailment
• Energy Procurement
E P • E
Energy Advisor Consulting
Ad i C li
• (Retro)commissioning
Use a NYSERDA Consultant or your own!
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13. Benchmarking and Operations Efficiency Program
B h ki dO ti Effi i P
h k &
•Benchmarking services & on‐site
energy assessments
y
•Performed by FlexTech
Consultants
•50/50 cost‐share on projects
> $7,000
> $7 000
•Additional services available through
FlexTech for more detailed energy
Fl T h f d il d
studies and through Existing Facilities
for implementation incentives
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14. Existing Facilities: Performance Based Incentives
E i ti F iliti P f B dI ti
General:
• Incentive is paid on the energy savings over 1 year
p gy g y
• Cap:
– 50% of project cost, 75% for projects w/ demand response (**consider
project & benefit bundling ), 1 yr. payback
project & benefit bundling**), 1 yr. payback
– $2 million per site commercial customers
– $5 million per site industrial customers
• All projects require a detailed engineering analysis to establish
All projects require a detailed engineering analysis to establish
savings
• Pre and post implementation site inspections
• Large projects require M&V
Large projects require M&V
• Bonuses for super efficient and innovative equipment $$
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15. Existing Facilities: Performance Based Incentives
E i ti F iliti P f B dI ti
Program Component Con Edison Territory Upstate
Electric Efficiency $0.16 / kWh $0.12 / kWh
Gas Efficiency
y $
$2.00 / therm
/ $
$1.50 / therm
/
Demand Response $200 / kW $100 / kW
Monitoring‐Based CxA $0.05 / kWh $0.05 / kWh
Energy / Thermal Storage $600 / kW $300 / kW
Industrial and Process Efficiency $0.16 / kWh $0.12 / kWh
$0.10 / kWh + $0.10 / kWh +
Combined Heat and Power
$750 / kW $600 / kW
$ 2 million facility cap, $5 million for IPE
$ 2 million facility cap, $5 million for IPE
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16. Existing Facilities: Prequalified Incentives
E i ti F iliti P lifi d I ti
• Applicants can receive $/unit rebates
• Easy process – intended for smaller, less complex projects
• Apply within 90 days of install
• $30,000 cap
• Some pre‐qualified Incentives categories:
Lighting, HVAC, Motors, Refrigeration & Freezers, VFDs, Gas Efficiency,
Commercial Kitchen Equipment…etc.
An example:
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17. New Construction Program
N C t ti P
Objective
• Transform the way buildings are
designed and built
g
Services
• Technical assistance, computer
modeling, commissioning
• Incentives for energy efficient
equipment and systems
•GGreen Building planning assistance
B ildi l i i
• Bonus incentives for LEED credits
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18. Lighting/Submetering Assistance
Li hti /S b t i A i t
• Commercial Lighting Program
– Trained Business Partners available
– All projects receive design QA/QC
– List of partners available at www.therightlight.org
p g g g
• Lighting incentives available through Existing
Facilities
• Incentives for submeters available through Existing
Facilities or FlexTech in certain projects
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19. Other Tools
Oth T l
• NYSERDA‐funded benchmarking training
g gy
available through Association for Energy
Affordability
• CUNY Building Performance Lab
CUNY Building Performance Lab
• Northwrite Energy Information System
Installation
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20. Contact Information
C t tI f ti
Scott Kessler
NYSERDA NYC Office
212.971.5342 x 3022
212 971 5342 x 3022
sbk@nyserda.org
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