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Energy-Efficiency Standards and Green Building Certification Systems Used by the Department of Defense for Military Construction and Major Renovations (2013)
Board on Infrastructure and the Constructed Environment (BICE)

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. "Appendix C: Cost Effectiveness Study of Various Sustainable Building Standards in Response to NDAA 2012 Section 2830 Requirements." Energy-Efficiency Standards and Green Building Certification Systems Used by the Department of Defense for Military Construction and Major Renovations. Washington, DC: The National Academies Press, 2013.

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C Cost Effectiveness Study of Various Sustainable Building Standards in Response to NDAA 2012 Section 2830 Requirements This appendix contains a reprint of the study prepared by Sarah Slaughter for the Committee to Evaluate Energy-Efficiency and Sustainability Standards Used by the Department of Defense for Military Construction and Repair, dated September 10, 2012. PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION C-1

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        COST  EFFECTIVENESS  STUDY  OF  VARIOUS   SUSTAINABLE  BUILDING  STANDARDS  IN   RESPONSE  TO  NDAA  2012  SECTION  2830   REQUIREMENTS               PREPARED  BY:   Dr.  Sarah  Slaughter     DATE:   September  10,  2012     PURPOSE:   National  Research  Council     Committee  to  Evaluate  Energy-­‐Efficiency  and  Sustainability  Standards   Used  by  the  Department  of  Defense  for  Military  Construction  and  Repair         PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION C-2

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1 NDAA  Final  Report   Dr.  Sarah  Slaughter     9/10/12         OVERVIEW     In  the  NDAA  2012  Section  2830(a),  Congress  required  the  Department  of  Defense  to   submit  a  report  that  includes  a  cost-­‐benefit  analysis,  return  on  investment,  and  long-­‐term   payback  for  specific  building  standards  and  rating  systems  (ASHRAE  189.1  and  90.1,  LEED   Silver,  Gold,  and  Platinum,  and  other  ANSI  accredited  standards  such  as  Green  Globes).  It   also  required  the  DOD  to  provide  a  policy  prescribing  a  comprehensive  strategy  for  the   cost-­‐effective  pursuit  of  design  and  building  standards  that  include  specific  energy-­‐efficient   standards  and  sustainable  design  attributes  based  on  those  findings.     At  the  request  of  the  Office  of  the  Secretary  of  Defense  for  Installations  and   Environment,  the  National  Research  Council  (NRC)  appointed  an  ad  hoc  committee  to   review  the  literature  on  the  state-­‐of-­‐the-­‐knowledge  about  the  economic  efficiency  of   sustainable  buildings,  to  evaluate  a  consultant-­‐generated  methodology  and  analysis  of  the   economic  efficiency  of  the  specified  building  design  standards,  and  to  identify  potential   factors  and  approaches  that  the  DOD  should  consider  in  developing  a  comprehensive   strategy  for  its  entire  portfolio  of  facilities  that  includes  standards  for  energy-­‐efficiency  and   sustainable  design.     This  report  outlines  the  methodology  and  findings  by  the  consultant  to  analyze  the   cost-­‐benefit,  return  on  investment,  and  long-­‐term  payback  for  the  specified  building  design   standards  and  ratings  systems.  The  second  part  of  the  study  tested  the  applicability  of  the   analytical  tools  to  DOD  facilities  going  forward,  as  input  to  the  DOD  comprehensive   strategy.     The  consultant  developed  and  applied  the  methodology  for  this  study  building  on   existing  research,  methods,  best  practices,  and  tools  to  analyze  the  economic  efficiency  of   the  specified  building  standards  and  rating  systems  and  to  provide  input  into  the   development  of  the  DOD  comprehensive  strategy.  The  methodology  was  developed  to   address  robustness,  validity,  and  replicability  of  the  analysis  of  the  specific  building  design   standards  and  rating  systems,  and  to  ensure  applicability  to  DOD  facilities.  The   methodology  (described  in  the  Methodology  section  of  this  report)  consists  of  the  following   elements:   1. Economic  Efficiency  Analysis:  This  study  follows  standard  economic  analysis   methodologies  and  data  collection  approaches  to  calculate  long-­‐term  cost-­‐ benefits  (Present  Value  Net  Savings),  return  on  investment,  and  payback,  as   required  in  the  NDAA  2012  Section  2830.  The  study  developed  an  analytical   approach  to  assess  the  long-­‐term  cost-­‐benefits  of  alternatives  for  a  range  of   scenarios  that  represent  uncertain  future  conditions.  This  approach  was  applied   using  a  set  of  tools  developed  specifically  for  this  study  to  provide  sensitivity   analyses  of  the  results  under  different  scenarios,  specifically  for  variations  in  the   discount  rate,  time  period,  and  price  escalation  rates  for  energy  and  water  costs.     PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-3

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2 NDAA  Final  Report   Dr.  Sarah  Slaughter     9/10/12     This  study  also  utilized  the  NIST  Building  Life-­‐Cycle  Cost  (BLCC)  software  to   calculate  present  value  net  savings,  (adjusted)  rate  of  return  on  investment,  and   payback.   2. Prototype  Buildings  and  Locations:  This  study  established  a  common  basis  on   which  to  calculate  the  long-­‐term  cost-­‐benefits,  return  on  investment,  and   payback  using  prototype  buildings  and  selected  locations  to  represent  the   heating  and  cooling  loads  and  local  factor  prices  that  influence  the  economic   efficiency  calculations.  Specifically,  this  study  utilized  the  results  and   characteristics  of  two  building  prototype  models  from  the  Department  of  Energy   (DOE)  Pacific  Northwest  National  Laboratory  (PNNL)  study  that  are  most   applicable  to  DOD  facilities,  specifically  the  “medium  office”  and  “small  hotel”   models  (corresponding  to  administrative  buildings  and  barracks,  respectively).   This  study  also  utilized  a  subset  of  five  locations  from  the  DOE  PNNL  set  of  15   locations  that  reflect  the  diversity  of  geographic  regions  across  the  continental   US  to  create  the  baseline  prototype  buildings.     3. Benefit  and  Cost  Categories:  This  study  includes  existing  reporting  categories   for  DOD  under  the  Annual  Energy  Management  Report  to  Congress  and  other   reports  for  the  analysis  of  costs  and  benefits  for  high  performance  buildings.  The   benefit-­‐cost  categories  are:  Investment  (initial  investment  and  major   repair/replacement  costs);  Operations,  Maintenance,  and  Repair  (OM&R)  costs,   including:  Energy  use  (building  and  supporting/site  facilities);  Water  use   (building  and  supporting/site  facilities);  Solid  waste  (municipal  and  hazardous);   and  Building/site  O&M  (general,  cleaning,  and  landscaping).     The  strategy  for  data  collection  addressed  the  issues  of  validity  and  accuracy  of  the   results.  In  discussions  with  staff  from  ASHRAE,  Green  Building  Initiative,  and  the  US  Green   Building  Council,  the  cost  and  benefit  data  for  the  analysis  of  the  specified  building  rating   systems  (Green  Globes  and  LEED)  was  developed  using  data  from  actual  certified   commercial/private  projects  that  are  similar  to  (and  brought  into  conformance  with)  the   characteristics  of  the  selected  prototype  buildings  (i.e.,  medium  office  and  small  hotel)  and   selected  locations.  The  ASHRAE  standards  data  were  generated  using  the  PNNL  building   models  for  the  two  prototype  buildings  in  the  selected  locations.       Separately,  and  in  parallel  with  the  analysis  of  the  specified  standards  and  rating   systems,  the  consultant  worked  with  DOD  installation,  HQ,  construction  agent  and  OSD   teams  to  test  the  applicability  of  the  analytical  approach,  process,  and  tools  to  DOD  military   construction  and  renovation.       SUMMARY  OF  RESULTS     In  direct  response  to  the  NDAA  2012  Section  2830,  to  provide  a  cost-­‐benefit   analysis,  return  on  investment  and  long-­‐term  payback  for  the  specified  design  standards,   this  study  analyzed  the  (Present  Value)  Net  Savings,  (Adjusted)  Rate  of  Return  on   Investment,  and  Payback  in  accordance  with  the  Office  of  Management  and  Budget  (OMB)   Circular  A-­‐94  Revised  (1992).  These  potential  Net  Savings  can  also  be  viewed  as  the     PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-4

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3 NDAA  Final  Report   Dr.  Sarah  Slaughter     9/10/12     potential  future  additional  costs  that  may  be  incurred  for  these  building  types  and   locations  under  these  scenarios.         The  Results  section  of  this  report  provides  the  Net  Savings  for  the  Long-­‐Term  Cost-­‐ Benefit  with  the  sensitivity  analysis,  as  well  as  the  Rate  of  Return  on  Investment  and   Payback,  for  each  specified  standard  and  rating  systems  using  the  two  building  types  (i.e.,   residential  and  office)  and  five  locations  that  represent  the  variety  of  climate  conditions   and  markets  across  the  continental  U.S.  Specifically,  this  study  analyzed  the  economic   efficiency  of  buildings  built  under  the  guidance  of:  ASHRAE  Standards  90.1-­‐2010  and   189.1-­‐2011;  LEED  Silver,  Gold  and  Platinum  Certifications;  and  Green  Globes  One,  Two,   Three  and  Four  Certifications.       The  results  of  the  analysis  in  this  study  indicate  that  the  building  standards  and   rating  systems  provide  buildings  that  are  economically  efficient  depending  on  building  type   and  location.  Specifically,  the  Long-­‐term  Cost-­‐Benefit  analysis  of  ASHRAE  Standard  90.1-­‐ 2010  provided  significant  Net  Savings  in  energy  reductions  for  both  building  types  and  in   all  5  locations.  ASHRAE  Standard  189.1-­‐2011  provided  greater  Net  Savings  than  90.1-­‐2010   across  all  locations  for  both  building  types  in  both  energy  and  water  cost  reductions.  In   particular,  the  water  cost  reductions  equaled  approximately  50%  of  the  Annual  Savings   across  the  building  types  and  locations.  ASHRAE  189.1-­‐2011  also  includes  the  requirement   for  on-­‐site  energy  generation,  and  these  incremental  initial  construction  costs  were   included,  and  the  on-­‐site  energy  was  used  to  offset  the  building  energy  used,  so  the  overall   building  energy  reductions  were  greater  for  189.1-­‐2011  than  for  90.1-­‐2010.       Buildings  built  under  the  guidance  of  the  LEED  rating  system  (Silver,  Gold  and   Platinum  Certification  levels)  and  the  Green  Globes  rating  system  (One,  Two,  Three  and   Four  Globes  certification  levels)  are  economically  efficient  depending  on  building  type  and   location,  and  are  highly  sensitive  to  the  incremental  initial  construction  cost.  The  LEED   Volume  Certification  program  could  further  increase  cost-­‐effectiveness  through  pre-­‐ approval  of  standardized  designs  and  management  procedures,  and  coordinated   procurement  programs.    In  addition,  the  recent  DOD  guidance  (2010)  specifying  that  40%   of  all  points  in  those  rating  systems  must  be  in  energy  and  water  categories  will  increase   the  economic  efficiency  (as  measured  in  this  study)  of  DOD  buildings  using  these  rating   systems.  It  must  be  noted,  however,  that  these  results  are  highly  dependent  on  the  data   provided  for  these  data  samples,  particularly  the  reported  initial  construction  costs.     The  sensitivity  analysis  incorporated  variations  in  energy  and  water  price   escalations,  as  well  as  the  cost  of  capital  (represented  by  the  discount  rate).  The  results   indicate  that  Net  Savings  for  the  specified  buildings  standards  and  rating  systems  would   increase  significantly  with  annual  price  escalations  of  2%  for  energy  and  4%  for  water  and   wastewater,  which  has  been  experienced  in  some  locations  of  the  US.  The  building   standards  and  rating  systems  could  reduce  the  vulnerability  of  DOD  installations  to  price   shocks  –  and  increase  cost-­‐effectiveness  -­‐  by  reducing  the  use  of  these  resources.  The   sensitivity  analysis  results  also  indicate  that,  even  if  the  prices  for  energy  and  water   decrease  and  the  cost  of  capital  increases  (represented  by  a  discount  rate  of  3%),  most     PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-5

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4 NDAA  Final  Report   Dr.  Sarah  Slaughter     9/10/12     facilities  built  under  the  guidance  of  the  standards  and  rating  systems  remain  economically   efficient.     INPUT FOR DOD COMPREHENSIVE STRATEGY   This  study  recognizes  that  the  core  purpose  of  military  construction  and  renovation   is  to  provide  high  performance  facilities  that  are  effective  and  efficient.  Specifically,  the   results  of  this  study  and  the  application  of  the  analytical  approach  can  be  used  to  identify   opportunities  to  improve  effectiveness  and  efficiency,  such  as  to  reduce  the  resource  usage   (and  the  related  burden  on  neighboring  communities),  reduce  vulnerabilities  to  price   increases,  and  increase  overall  resiliency  by  reducing  the  “baseload”  resource   requirements  under  normal  and  extreme  conditions.  The  primary  objective  of  this  study  is   to  ensure  the  usefulness  of  the  analytical  approach  and  results  to  aid  decision-­‐making  for   strategic  investments  in  DOD  capital  facility  assets.     The  results  of  the  economic  evaluation  of  the  building  standards  and  rating  systems   presented  in  this  report  have  direct  applicability  to  the  development  of  the  DOD   comprehensive  strategy  for  cost-­‐effective  military  construction  and  renovation.  This  study   highlighted  opportunities  for  cost-­‐effective  high  performance  buildings  built  under  the   guidance  of  the  specified  standards  and  rating  systems  for  different  building  types,   specifically  for  a  residential  facility  and  an  office  building,  in  both  energy  and  water  usage.   It  also  examined  the  potential  economic  value  in  different  locations  that  represent  the   variety  of  climate  zones  and  urban/rural  markets  across  the  U.S.,  incorporating  local  factor   unit  prices  and  conditions  that  affect  cost-­‐efficiency.  The  sensitivity  analysis  provides   insight  into  the  variability  of  cost-­‐effectiveness,  in  particular,  potential  escalation  of  energy   and  water  prices  and  changes  in  the  cost  of  money  (as  represented  by  the  discount  rate).     The  implication  of  the  results  of  the  economic  evaluation  of  the  specified  building   standard  and  rating  systems  for  the  DOD  comprehensive  strategy  for  cost-­‐effective  military   construction  is  that  ASHRAE  189.1-­‐2011  (which  includes  ASHRAE  90.1-­‐2010  by  reference)   would  likely  provide  economically  efficient  high  performance  military  facilities.  The   voluntary  ratings  systems  of  LEED  and  Green  Globes  can  provide  important  guidance  for   overall  high  performance  facilities  (including  attributes  not  measured  in  this  study)  as  well   as  third  party  verification,  and  buildings  certified  under  these  rating  systems  would  be   cost-­‐efficient  if  the  incremental  initial  investment  costs  are  within  a  margin  (in  these   samples,  if  the  incremental  initial  investment  cost  is  less  than  20%  of  the  baseline   investment  cost)  and  the  annual  savings  are  sufficient  to  offset  that  incremental  cost.     It  must  be  noted,  however,  that  those  results  are  highly  sensitive  to  the  heating  and   cooling  loads  for  different  climate  zones  and  to  the  local  factor  unit  prices.  Consideration  of   specific  choices  associated  with  the  application  of  those  standards  for  design  development   and  implementation  should  be  evaluated  grounded  in  the  specific  local  context.     The  second  portion  of  this  study  tested  the  applicability  of  the  analytical  approach,   process  and  tools  developed  for  this  research  to  military  construction  and  renovation     PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-6

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5 NDAA  Final  Report   Dr.  Sarah  Slaughter     9/10/12     projects  going  forward,  as  further  input  for  the  DOD  comprehensive  strategy.  The  results   from  example  applications  of  the  analytical  approach  using  empirical  data  from  actual  DOD   buildings  were  reviewed  with  staff  from  the  selected  installations,  HQ,  construction  agents,   and  the  Office  of  the  Secretary  of  Defense.  The  exercise  provided  important  feedback  for   the  potential  application  of  the  economic  efficiency  evaluation  process  for  DOD  military   and  construction  going  forward.       In  particular,  the  discussion  raised  certain  challenges  and  opportunities  associated   with  economic  efficiency  evaluations.  First,  the  analytical  approach  of  economic  efficiency   analysis  would  be  most  effectively  applied  across  a  portfolio  of  projects  -­‐  with  respect  to   the  overall  installation  requirements  -­‐  that  increase  mission  effectiveness  and  economic   efficiency.  Second,  the  application  of  an  economic  efficiency  analysis  requires  access  to   credible  and  verifiable  data  on  the  initial  investment  costs,  major  repair/replacement  costs,   and  operations,  maintenance  and  repair  costs  over  the  expected  life  of  the  facility.  The  DOD   components,  installations  and  construction  agents  are  initiating  specific  programs  to   collect  information  on  energy  and  sustainability  performance  for  capital  facility  assets,   including  both  the  expected  and  actual  performance  of  the  facilities.  The  effective  use  of  an   economic  efficiency  analysis  approach  may  require  additional  data  collection  to  aid   decision-­‐making.  Finally,  further  research  is  needed  to  determine  the  extent  to  which   industry  development  as  a  whole  may  increase  the  cost-­‐effectiveness  of  military   construction  and  repair.       The  Department  of  Defense  has  incorporated  life  cycle  cost  analysis  into  all  military   construction  and  renovation  projects,  and  the  DOD  components  have  launched  several   initiatives  to  incorporate  economic  assessment  into  decision  making  for  military   construction  and  renovation.  This  study  provides  the  results  of  the  economic  evaluation  of   the  specified  building  standards  and  rating  systems,  and  the  applicability  of  the  analytical   approach,  as  input  into  the  development  of  the  DOD  comprehensive  strategy  going   forward.                     PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-7

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6 NDAA  Final  Report   Dr.  Sarah  Slaughter     9/10/12       Table  of  Contents   OVERVIEW  ..............................................................................................................................................................  1   SUMMARY  OF  RESULTS  .....................................................................................................................................................  2   INPUT  FOR  DOD  COMPREHENSIVE  STRATEGY  ......................................................................................................  4   SCOPE  AND  BACKGROUND  ................................................................................................................................  8   DEPARTMENT  OF  DEFENSE  POLICY  ON  SUSTAINABLE  FACILITIES  ............................................................  8   DEFINITION  OF  TASK  .........................................................................................................................................................  9   METHODOLOGY  FOR  ECONOMIC  EVALUATION  OF  SPECIFIED  RATING  SYSTEMS  AND   STANDARDS  AND  DEVELOPMENT  OF  ANALYTICAL  TOOLS  ................................................................  11   ECONOMIC  EFFICIENCY  ANALYSIS  ...........................................................................................................................  12   STUDY  METHODOLOGY  FOR  ECONOMIC  EFFICIENCY  ANALYSIS  ...............................................................  14   Sensitivity  Analysis  on  Study  Period  ..........................................................................................................................  16   Sensitivity  Analysis  on  Discount  Rate  ........................................................................................................................  17   Sensitivity  Analysis  on  Factor  Price  Escalation  ....................................................................................................  18   STUDY  METHODOLOGY  USING  PROTOTYPE  BUILDINGS  AND  CLIMATE  ZONES  .................................  20   STUDY  METHODOLOGY  FOR  BENEFIT  AND  COST  CATEGORIES  .................................................................  21   STUDY  METHODOLOGY  FOR  DATA  COLLECTION  FOR  PROTOYPE  BUILDINGS  ....................................  23   STUDY  METHODOLOGY  FOR  DATA  COLLECTION  FOR  STANDARDS  AND  RATINGS  SYSTEMS  ......  25   ASHRAE  Standards  Data:  Building  Models  .............................................................................................................  26   LEED  Data:  Certified  Buildings  from  US  Green  Building  Council  (USGBC)  ..............................................  27   Green  Globes  Data:  Certified  Buildings  from  Green  Building  Initiative  (GBI)  .........................................  29   RESULTS  OF  ECONOMIC  EFFICIENCY  EVALUATION  OF  SPECIFIED  BUILDING  STANDARDS  AND   RATING  SYSTEMS  ..............................................................................................................................................  32   ASHRAE  90.1-­‐2010  –  ECONOMIC  EFFICIENCY  RESULTS  ACROSS  BUILDING  TYPES  AND   LOCATIONS  ..........................................................................................................................................................................  33   Long-­‐term  Cost-­‐Benefit  ...................................................................................................................................................  34   Rate  of  Return  on  Investment  .......................................................................................................................................  37   Payback  ..................................................................................................................................................................................  38   Summary  Results  for  ASHRAE  90.1-­‐2010  ................................................................................................................  38   ASHRAE  189.1-­‐2011  –  ECONOMIC  EFFICIENCY  RESULTS  ACROSS  BUILDING  TYPES  AND   LOCATIONS  ..........................................................................................................................................................................  40   Long-­‐term  Cost-­‐Benefit  ...................................................................................................................................................  41   Rate  of  Return  on  Investment  .......................................................................................................................................  44   Payback  ..................................................................................................................................................................................  45   Summary  Results  for  ASHRAE  189.1-­‐2011  .............................................................................................................  46   LEED  –  ECONOMIC  EFFICIENCY  RESULTS  ACROSS  BUILDING  TYPES  AND  LOCATIONS   ...................  48   Long-­‐term  Cost-­‐Benefit  ...................................................................................................................................................  50   Rate  of  Return  on  Investment  .......................................................................................................................................  54   Payback  ..................................................................................................................................................................................  55   Summary  Results  for  LEED  ............................................................................................................................................  56   GREEN  GLOBES  –  ECONOMIC  EFFICIENCY  RESULTS  ACROSS  BUILDING  TYPES  AND  LOCATIONS  ...................................................................................................................................................................................................  58   Long-­‐term  Cost-­‐Benefit  ...................................................................................................................................................  59   Rate  of  Return  on  Investment  .......................................................................................................................................  63   Payback  ..................................................................................................................................................................................  63     PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-8

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7 NDAA  Final  Report   Dr.  Sarah  Slaughter     9/10/12     .............................................................................................................................  64   Summary  Results  for  Green  Globes   SUMMARY  OF  RESULTS  OF  ECONOMIC  EFFICIENCY  EVALUATION  ...........................................................  65   APPLICABILITY  OF  COST  EFFECTIVENESS  STUDY  TO  DOD  MILITARY  CONSTRUCTION  AND   RENOVATION  ......................................................................................................................................................  69   IMPLICATIONS  OF  ECONOMIC  EFFICIENCY  EVALUATION  FOR  MILITARY  CONSTRUCTION  AND   RENOVATION  INVESTMENTS  ......................................................................................................................................  70   APPLICABILITY  OF  ANALYTICAL  FRAMEWORK  FOR  DOD  MILITARY  CONSTRUCTION  ...................  72   Timing  of  Economic  Efficiency  Analysis  for  Decision  Support  .......................................................................  73   Current  DOD  Data  Collection  for  Strategic  Investment  in  DOD  Capital  Facility  Assets   ......................  74   Industry  and  Market  Factors  for  Long-­‐term  Cost  Efficiency  of  Military  Construction  and   Renovation  ............................................................................................................................................................................  77   APPENDIX  A:  SENSITIVITY  ANALYSIS  DATA  ............................................................................................  80   TABLE  A.1:  PRICE  ESCALATION  2010-­‐2011  AND  EQUIVALENT  ANNUAL  ESCALATION  FOR  ENERGY,   WATER/SEWER,  AND  MUNICIPAL  WASTE   ........................................................................................................................  80   TABLE  A.2:  (OMB)  DISCOUNT  RATE  FOR  COST-­‐EFFECTIVENESS  2007-­‐2012  ........................................................  80   APPENDIX  B:  PROTOTYPE  BUILDINGS–CHARACTERISTICS  ...............................................................  82   SMALL  HOTEL  .........................................................................................................................................................................  82   MEDIUM  OFFICE  .....................................................................................................................................................................  84   APPENDIX  C:  DEFINITIONS  OF  BENEFIT-­‐COST  CATEGORIES  .............................................................  86   APPENDIX  D:  BASELINE  PROTOTYPE  BUILDINGS  RESOURCE  USAGE  AND  FACTOR  UNIT   .......................................................................................................................................  88   PRICES  BY  LOCATION   APPENDIX  E:  FEDERAL  STATUTES  FOR  LIFE  CYCLE  COST  ANALYSIS  ..............................................  90   APPENDIX  F:  REFERENCES  FOR  FEDERAL  REPORTING  REQUIREMENTS  FOR  BENEFIT-­‐COST   CATEGORIES  .......................................................................................................................................................  91   APPENDIX  G:  ASHRAE  DATA  GENERATION  METHODOLOGY  .............................................................  92         PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-9

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8 NDAA  Final  Report   Dr.  Sarah  Slaughter     9/10/12     SCOPE  AND  BACKGROUND     DEPARTMENT  OF  DEFENSE  POLICY  ON  SUSTAINABLE  FACILITIES     Recognizing  the  significant  role  of  buildings  in  solving  national  issues  such  as   energy  independence  and  security,  and  the  opportunity  for  federal  leadership,  Congress   and  two  Presidential  administrations  have  enacted  laws  and  issued  Executive  Orders   directing  federal  agencies  to  develop  high-­‐performance,  energy  efficient,  and  sustainable   federal  buildings.  To  implement  these  mandates,  federal  departments  and  agencies  have   issued  policies  for  sustainable  building  design.     The  Department  of  Defense  (DOD)  and  its  components  manage  more  than  500,000   buildings  and  structures  worldwide,  containing  more  than  2.1  billion  total  square  feet  of   space.  The  annual  energy  budget  for  these  facilities  is  more  than  $4  billion.  The  DOD's   Sustainable  Building  Policy  includes  supplementary  information  (October  2010)  that   specifies  that:   1. All  new  building  design  and  construction  shall  conform  to  the  Guiding   Principles  in  the  High  Performance  and  Sustainable  Buildings  Memorandum   of  Understanding.   2. DOD  components  will  design,  build,  and  certify  as  appropriate,  all  new   construction  projects,  at  a  minimum,  to  the  Silver  level  of  the  Leadership  in   Energy  and  Environmental  Design  (LEED)  green  building  rating  system  (or   equal).  Beginning  in  FY12  for  projects  in  the  planning  stage,  the  sum  of   energy  and  water  efficiency  credits  shall  equal  or  exceed  40  percent  of  the   points  required  for  a  LEED  Silver  (or  equal)  rating;  this  highlights  the   importance  of  pursuing  additional  energy-­‐  and  water-­‐related  credits  in  areas   such  as  cool  roofs  and  day  lighting.   3. All  repair/renovation  projects  in  existing  buildings  shall  also  conform  to  the   Guiding  Principles  where  they  apply.  The  DOD  components  will  design,   execute  and  certify  major  repair/renovation  projects  to  be  LEED  Silver,  at  a   minimum,  where  appropriate.   4. Reducing  total  cost  of  ownership  is  intrinsic  to  sustainable  buildings.  The   DOD  components  shall  incorporate  life  cycle  and  cost/benefit  analysis  into   design  decisions  for  new  construction  and  renovation/repair  projects.1     Concerns  have  been  raised  in  Congress  that  DOD  buildings  conforming  to  this  policy   may  not  be  cost  effective  or  achieving  federal  mandates  for  energy  efficiency.  In  response   to  these  concerns,  the  National  Defense  Authorization  Act  (NDAA)  for  Fiscal  Year  2012,   Section  2830,  requires  the  Department  of  Defense  (DOD)  to  submit  a  report  to  the   congressional  defense  committees  on  energy  efficiency  and  sustainability  standards  used                                                                                                                   1  Office  of  the  Secretary  of  Defense,  Deputy  Under  Secretary  of  Defense  (Installations  &   Environment)  Dorothy  Robyn  (2010).  “Department  of  Defense  Sustainable  Buildings  Policy     PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-10

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9 NDAA  Final  Report   Dr.  Sarah  Slaughter     9/10/12     by  the  DOD  for  military  construction  and  repair.  The  report  must  include  a  cost-­‐benefit   analysis,  return  on  investment,  and  long-­‐term  payback  for  the  following  building  design   standards:   • American  Society  of  Heating,  Refrigerating,  and  Air-­‐Conditioning  Engineers   (ASHRAE)  Standard  189.1-­‐2011  for  the  Design  of  High-­‐Performance,  Green   Buildings  Except  Low-­‐Rise  Residential  Buildings   • ASHRAE  Energy  Standard  90.1-­‐2010  for  Buildings  Except  Low-­‐Rise   Residential   • Leadership  in  Energy  and  Environmental  Design  (LEED)  Silver,  Gold,   Platinum,  and  Volume  Certifications   • Other  American  National  Standards  Institute  (ANSI)  accredited  standards,   such  as  Green  Globes.     The  report  must  also  include  a  copy  of  the  DOD  policy  prescribing  a  comprehensive   strategy  for  the  pursuit  of  design  and  building  standards  that  include  specific  energy-­‐ efficient  standards  and  sustainable  design  attributes  based  on  the  cost-­‐benefit  analysis,   return  on  investment,  and  demonstrated  payback  for  the  aforementioned  building  design   standards.   DEFINITION  OF  TASK     At  the  request  of  the  Office  of  the  Secretary  of  Defense  for  Installations  and   Environment,  an  ad  hoc  committee  was  appointed  by  the  National  Research  Council  (NRC)   to:  (1)  evaluate  the  completeness,  accuracy,  and  relevance  of  a  literature  review  that   synthesizes  the  state-­‐of-­‐the-­‐knowledge  about  the  costs  and  benefits,  return  on  investment,   and  long-­‐term  payback  of  specified  design  standards  related  to  sustainable  buildings;  (2)   evaluate  a  consultant-­‐generated  methodology  and  analysis  of  the  cost-­‐benefit,  return  on   investment,  and  long-­‐term  payback  for  the  specified  building  standards  and  rating  systems   in  NDAA  2012  Section  2830,  and  the  test  for  the  potential  applicability  of  the  analytical   approach  to  military  construction  and  renovation  using  empirical  data  from  DOD  buildings;   and  (3)  identify  potential  factors  and  approaches  that  the  DOD  should  consider  in   developing  a  comprehensive  strategy  for  its  entire  portfolio  of  facilities  that  includes   standards  for  energy-­‐efficiency  and  sustainable  design.     The  consultant,  working  with  the  Office  of  the  Secretary  of  Defense  and  the  military   components,  and  in  conjunction  with  representatives  of  the  organizations  for  the  specified   standards  and  rating  systems  organizations,  developed  a  methodology  for:  1)  analyzing  the   cost-­‐benefit,  return  on  investment,  and  long-­‐term  payback  achievable  using  sustainable   building  standards  specified  in  the  NDAA  2012  Section  2830  using  an  example  building;   and  2)  gathering  and  analyzing  empirical  data  from  DOD  buildings  to  evaluate  the  cost   benefit,  return  on  investment,  and  long-­‐term  payback  achievable  using  sustainable  building   standards  specified  in  the  NDAA  2012  Section  2830.     The  consultant  then  gathered  and  analyzed  example  building  data  to  calculate  the   cost-­‐benefit,  return  on  investment,  and  long-­‐term  payback  achievable  using  sustainable   building  standards  specified  in  the  NDAA  2012  Section  2830.  The  methodology  for  this     PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-11

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Dr.  Sarah  Slaughter   Final  Report     Figure  2  Incremental  First  Costs  vs  Energy  Savings   y  =  0.0719x  +  0.0962   Incremental  First  Cost  -­‐  $/ft2   R²  =  0.83284   Medium  Of•ice   y  =  0.0894x  +  0.1384   R²  =  0.90076   Small  Hotel   Linear  (Medium   Of•ice)   Linear  (Small  Hotel)   Energy  Savings  -­‐  %       7.0  Incremental  First  Costs       The  data  in  Tables  3  and  4  formed  the  basis  for  all  of  the  first  cost  calculations  used   in  this  study.    These  incremental  first  costs  account  for  all  of  the  upgrades  due  to  more   stringent  criteria  for  the  envelope,  lighting,  HVAC  and  SWH.    These  incremental  costs  do   not  account  for  any  of  the  first  costs  for  the  PV  systems     so  they  need  to  be  calculated   separately.     Table  3  Incremental  First  Costs  for  the  Medium  Office         Medium  Office   (PNNL  19004)   CZ   City   Energy   Incremental   Incrementa Slope   Savings    FC   l     (%)   ($)   FC   ($/ft2/% ($/ft2)   )   1   Miami   47   175,176   3.27   0.0695   2   Phoenix   53   206,606   3.85   0.0727   3   Atlanta   42   211,909   3.95   0.0941   4   Baltimor 43   196,787   3.67   0.0854   e   6   Helena   45   127,134   2.37   0.0527                   6  

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Dr.  Sarah  Slaughter   [App. G]-5 Final  Report         Table  4  Incremental  First  Costs  for  the  Small  Hotel       Small  Hotel   (PNNL  17875)   CZ   City   Energy     Incremental   Incrementa Slope   Savings   FC   l      (%)   ($)   FC   ($/ft2/%)   ($/ft2)   1   Miami   27   129,607   3.00   0.1111   2   Phoenix   29   138,752   3.21   0.1107   3   Memphis   32   127,498   2.95   0.0922   4   Baltimore   34   120,879   2.80   0.0824   6   Helena   32   114,183   2.64   0.0825     8.0  First  Costs  –  Standard  90.1-­‐2010       The  initial  step  in  determining  the  first  costs  is  to  calculate  the  percentage  of  energy   savings  between  the  baseline  Standard  90.1-­‐2004  and  90.1-­‐2010.    In  order  to  perform  this   calculation  the  electrical  and  gas  energies  are  added  together  using  kWh  as  the  common   metric  which  is  listed  as  Energy  in  Tables  5  and  6.             Table  5  Standard  90.1-­‐2010  Medium  Office  First  Costs       90.1-­‐ 90.1-­‐   Incremental   90.1-­‐ 90.1-­‐ 2004   2010   2004   2010   CZ   City   Energy   Energy   Save   FC   FC   Baseline   Total   (kWh)   (kWh)   (%)   ($/ft2 ($)   ($)   ($)   )   1   Miami   802,795   609,372   24.09   1.68   89,801   6,052,000   6,141,801   2   Phoenix   805,658   604,243   25.00   1.82   97,456   5,970,500   6,067,956   3   Memphis   788,061   566,718   28.09   2.64   141,712   5,754,000   5,895,711   4   Baltimore   823,329   579,172   29.65   2.53   135.714   6,273,000   6,408,714   6   Helena   856,362   621,534   27.42   1.45   77,472   5,944,500   6,021,972     Table  6  Standard  90.1-­‐2010  Small  Hotel  First  Costs       90.1-­‐ 90.1-­‐   Incremental   90.1-­‐ 90.1-­‐ 2004   2010   2004   2010   CZ   City   Energy   Energy   Save   FC   FC   Baseline   Total   (kWh)   (kWh)   (%)   ($/ft2)   ($)   ($)   ($)   1   Miami   905,411   803,172   11.29   1.25   54,204   5,049,888   5,104,092   2   Phoenix   891,109   777,857   12.71   1.41   60,807   4,977,888   5,038,695   3   Memphis   939,094   806,713   14.10   1.30   56,166   4,825,388   4,881,554   4   Baltimore   1,001,871   845,071   15.65   1.29   55,642   5,172,960   5,228,602   6   Helena   1,067,193   892,747   16.35   1.35   58,327   4,990,888   5,049,215   PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION     C-101

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Dr.  Sarah  Slaughter   [App. G]-6 Final  Report               9.0  Renewable  Energy  –  Photovoltaic  Panels       Photovoltaic  panels  were  modeled  with  EnergyPlus  for  Std.  189.1-­‐2009  to  comply   with  the  annual  on-­‐site  renewable  energy  requirements  which  are  presented  in  Table  7.     Table  7  Annual  On-­‐Site  Renewable  Energy  Criteria   Standard  Criteria   189.1-­‐2009   189.1-­‐2011   Prescriptive  Criteria   6.0  kBtu/ft2  (20  kWh/m2)   Single  Story  Buildings   (7.4.1.1)   x  Conditioned  Space  Floor    =  6.0  kBtu/ft2  (20   Area   kWh/m2)  x  Total  Roof  Area       All  Other  Buildings    =  10.0  kBtu/ft2  (32   kWh/m2)  x  Total  Roof  Area     HVAC  High  Efficiency   4.0  kBtu/ft2  (13  kWh/m2)   Single  Story  Buildings   Modification  (7.4.3.1)   x  Conditioned  Space  Floor    =  4.0  kBtu/ft2  (13   Area   kWh/m2)  x  Total  Roof  Area     All  Other  Buildings    =  7.0  kBtu/ft2  (22   kWh/m2)  x  Total  Roof  Area     The  major  difference  between  Standards  189.1-­‐2009  and  189.1-­‐2011  is  the  area  multiplier.     In  Std.  189.1-­‐2009  the  area  multiplier  is  the  conditioned  space  but  was  changed  in  Std.   189.1-­‐2011  to  be  the  total  roof  area,  see  Table  8.     Table  8  Conditioned  Space  and  Roof  Areas   Area   Medium  Office   Small  Hotel   Conditioned   53,660  ft2  (4,985   43,200  ft2  (4,013   Space   m2)   m2)   Roof   17,867  ft2  (1,660   10,800  ft2  (1,003   m2)   m2)     This  change  has  no  impact  for  one  story  buildings  but  has  a  major  impact  on  multi-­‐story   buildings  such  as  those  being  analyzed  in  this  project,  see  Table  9.       Table  9  Annual  On-­‐Site  Renewable  Energy  Criteria   Code   Medium   Small  Hotel    Requirement   Office    (kWh)    (kWh)   PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-102  

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Dr.  Sarah  Slaughter   [App. G]-7 Final  Report     Std.  189.1-­‐2009   99,700   80,260   Std.  189.1-­‐2009  -­‐  High  Efficiency  HVAC   64,805   52,169   Std.  189.1-­‐2011   53,120   32,096   Std.  189.1-­‐2011  -­‐  High  Efficiency  HVAC   36,520   22,066     The  next  requirement  in  determining  the  PV  first  cost  was  to  calculate  the  number  of  PV   panels  required  for  each  building  type  in  each  city.    An  analysis  was  completed  using  the   PVWatts  calculator  developed  by  NREL  which  is  readily  available  at  their  internet  web  site.     The  results  for  a  4kW  panel  are  presented  in  Table  10.   Table  10  PV  Panels  Energy  Performance   CZ   City   Solar   4  kW  DC   Radiation     produces  annual   (kWh/m2-­‐day)   AC    (kWh)   1   Miami   5.26   5,357   2   Phoenix   6.57   6,468   3   Memphis   5.18   5,352   4   Baltimore   4.66   4,911   6   Helena   4.71   5,040     Using  the  energy  performance  of  an  individual  panel,  the  number  of  panels  required  can  be   calculated  as  well  as  their  total  first  costs.    A  4  kW  DC  panel  was  assumed  to  have  a  de-­‐ rated  factor  of  0.77  which  would  produce  3.1  kW  AC.    Goodman  reported  the  cost  in  2010   for  PV  systems  as  $4.59/W  for  commercial  roof  top  installations.    However,  the  costs  have   been  steadily  decreasing.    A  realistic  estimate  for  2012  per  Eric  Bonnema  of  NREL  is   $4.00/W  so  this  value  was  used  for  this  analysis.    Thus,  the  total  cost  for  a  4kW  panel  is   $16,000.    Using  this  price  the  total  panel  costs  and  the  building  costs  per  square  foot  can  be   calculated.         The  modeling  of  Std.  189.1-­‐2009  (Liu)  used  the  high  efficiency  HVAC  requirements,  see   Table  11.     Table  11  Annual  On-­‐Site  Renewable  Energy  –  Standard  189.1-­‐2009         Medium  Office   Small  Hotel   C City   Energ Panel FC   FC   Energ Panel FC   FC   Z   y   s    ($)   ($/ft2 y   s   ($)   ($/ft2 (kWh)   (No.)   )   (kWh)   (No.)   )   1   Miami   62,847   11.73   187,70 4.35   50,619   9.45   151,18 2.82   8   6   2   Phoenix   62,767   9.70   155,26 3.59   50,619   7.83   125,21 2.34   8   7   3   Memphis   62,750   11.72   187,59 4.34   50,619   9.46   151,32 2.82   3   7   4   Baltimor 62,842   12.80   204,73 4.74   50,619   10.31   164,91 3.08   e   9   6   6   Helena   62,561   12.41   198,60 4.60   50,619   10.04   160,69 3.00   PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-103  

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Dr.  Sarah  Slaughter   [App. G]-8 Final  Report     6   5     For  purposes  of  this  study  the  energy  savings  and  first  costs  for  Std.  189.1-­‐2011  also   assumed  the  high  efficiency  HVAC  requirement,  see  Table  12.     Table  12  Annual  On-­‐Site  Renewable  Energy  –  Standard  189.1-­‐2011       Medium  Office  –  36,520   Small  Hotel  –  22,066  kWh   kWh   CZ   City   Panel   FC   FC   Panel   FC   FC   (No.)    ($)    ($/ft2)   (No.)    ($)   ($/ft2)   1   Miami   6.82   109,07 2.52   4.12   65,906   1.23   6   2   Phoenix   5.65   90,340   2.09   3.41   54,585   1.02   3   Memphis   6.82   109,17 2.53   4.12   65,967   1.23   8   4   Baltimore   7.44   118,98 2.75   4.49   71,891   1.34   2   6   Helena   7.25   115,93 2.68   4.38   70,051   1.31   7         10.0  First  Costs  –  Standard  189.1-­‐2011       The  data  available  for  this  study  included  an  energy  analysis  for  Std.  189.1-­‐2009  but   nothing  for  Std.  189.1-­‐2011.    No  data  on  first  costs  for  either  standard  was  available  so  it   had  to  be  estimated.    The  starting  point  was  to  identify  the  major  differences  in  the  criteria   between  Standards  189.1-­‐2009  and  189.1-­‐2011.    Many  features  were  the  same  between   these  two  standards  including  all  of  envelope  criteria  plus  the  HVAC  and  SWH  equipment   efficiencies.    There  were  two  differences  that  were  explicitly  accounted  for  in  this  study,  the   interior  lighting  power  and  PV  requirements.               The  first  costs  for  Std.  189.1-­‐2011  include  all  of  the  building  envelope,  lighting  and   equipment  upgrades  plus  the  first  costs  for  the  PV  system.    In  order  to  determine  the   building  first  costs  the  building  energy  is  required.    The  building  energy  was  calculated   using  Eq.  1.      Energy  of  189.1-­‐2011  =  Energy  of  189.1-­‐2009  –  Int.  Ltg.  189.1-­‐2009  +  Int.  Ltg.  of  90.1-­‐ 2010  x  LPD  Factor  in  189.1-­‐2011.                                  (1)       In  Standard  189.1-­‐2011  Table  7.4.6.1A  LPD  Factors  when  Using  the  Building  Area   Method  lists  the  LPD  Factor  of  0.95  for  offices  and  1.00  for  hotels.     PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-104

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Dr.  Sarah  Slaughter   [App. G]-9 Final  Report     It  is  important  to  note  that  the  energy  use  associated  with  the  interior  lighting  has  been   accounted  for  directly.  However,  the  impact  of  the  reduced  lighting  energy  will  increase  the   heating  loads  and  reduce  the  cooling  loads  in  the  building  but  that  has  not  been  included.         The  first  costs  for  Standard  189.1-­‐2011  are  presented  in  Tables  13  and  14.    The  energy   listed  for  Standards  90.1-­‐2004  and  189.1-­‐2011  is  the  total  site  energy  for  the  building  with   the  gas  usage  converted  into  kWh.         Table  13  Standard  189.1-­‐2011  Medium  Office  First  Costs       90.1-­‐ 189.1-­‐   Building   PV   90.1-­‐ 189.1-­‐ 2004   2011   Incremental   2004   2011   CZ   City   Energy   Energy   Save   FC   FC   FC   Baseline   Total   (kWh)   (kWh)   (%)   ($/ft ($)   ($)   ($)   ($)   2)   1   Miami   802,795   623,50 22.3   1.55   83,009   109,07 6,052,00 6,244,08 8   6   0   5   2   Phoenix   805,658   605,32 24.9   1.81   96,895   187,23 5,970,50 6,157,73 5   5   0   5   3   Memphis   788,061   598,54 24.1   2.27   121,61 230,79 5,754,00 5,984,79 0   8   6   0   6   4   Baltimor 823,329   619,55 24.8   2.11   113,29 232,27 6,273,00 6,505,27 e   4   2   4   0   4   6   Helena   856,362   652,35 38.9   2.05   109,80 225,73 5,944,50 6,170,23 7   2   9   0   9               Table  14  Standard  189.1-­‐2011  Small  Hotel  First  Costs       90.1-­‐ 189.1-­‐   Building   PV   90.1-­‐ 189.1-­‐ 2004   2011   Incremental   2004   2011   CZ   City   Energy   Energy   Sav FC   FC   FC   Baseline   Total   (kWh)   (kWh)   e   ($/ft ($)   ($)   ($)   ($)   (%)   2)   1   Miami   905,411   733,94 18.9   2.10   156,797   65,90 5,049,888   5,206,685   8   6   2   Phoenix   891,109   727,48 18.4   2.03   142,398   54,58 4,977,888   5,120,286   1   5   3   Memphis   939,094   727,86 22.5   2.07   159,559   65,96 4,825,388   4,980,947   0   7   4   Baltimor 1,001,87 738,89 26.2   2.16   165,328   71,89 5,172,960   5,338,288   e   1   3   1   6   Helena   1,067,19 765,54 28.3   2.33   170,788   70,05 4,990,888   5,161,676   PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-105  

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Dr.  Sarah  Slaughter   [App. G]-10 Final  Report     3   9   1     11.0  Summary       Tables  15  and  16  present  the  Standard  90.1-­‐2010  and  189.1-­‐2011first  costs  and  site   energy  consumptions  for  both  building  types  so  all  of  the  information  is  conveniently   located  and  summarized  for  quick  reference.     Table  15  Summary  of  Results  for  Standard  90.1-­‐2010       Medium  Office   Small  Hotel   CZ   City   FC   Elec.   Gas   FC   Elec.   Gas   ($)   (kWh)   (Mcf)   ($)   (kWh)   (Mcf)   1   Miami   6,141,801   575,130   113   5,104,092   584,536   724   2   Phoenix   6,067,956   563,558   135   5,038,695   543,719   776   3   Memphis   5,895,711   507,455   196   4,881,554   516,889   960   4   Baltimore   6,408,714   474,919   345   5,228,602   498,256   1149   6   Helena   6,021,972   465,091   518   5,049,215   478,914   1371     Table  16  Summary  of  Results  for  Standard  189.1-­‐2011       Medium  Office   Small  Hotel   CZ   City   FC   Elec.   Gas   FC   Elec.   Gas   ($)   (kWh)   (Mcf)   ($)   (kWh)   (Mcf)   1   Miami   6,244,085   588,664   117   5,206,685   517,411   718   2   Phoenix   6,157,735   561,436   145   5,120,286   496,353   766   3   Memphis   5,984,796   509,573   293   4,980,947   471,153   851   4   Baltimore   6,505,274   484,121   449   5,338,288   456,958   934   6   Helena   6,170,239   466,415   616   5,161,676   440,558   1077       The  analysis  used  to  develop  these  first  costs  and  energy  consumptions  has   required  many  simplifying  assumptions.    The  fundamental  approach  was  to  assume  a   linear  relationship  between  the  first  costs  and  the  energy  savings.    Fortunately  the  energy   savings  of  the  AEDG  exceeded  that  of  Standards  90.1-­‐2010  and  189.1-­‐2011  so  all  of  the  first   costs  were  interpolated  and  did  not  need  to  be  extrapolated,  see  Table  17.       Table  17  Range  of  Energy  Savings  (%)   Document   Medium   Small   Office   Hotel   AEDG   42  -­‐  53   27  -­‐  34   Std.  90.1-­‐2010   24  -­‐  30   11  -­‐  16   Std.  189.1-­‐ 22  -­‐  39   19  -­‐  28   2011         PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-106  

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Dr.  Sarah  Slaughter   [App. G]-11 Final  Report       An  estimate  of  the  first  costs  and  energy  savings  for  Standard  90.1-­‐2010  and  189.1-­‐ 2011  has  been  completed.    A  simplified  linear  approach  was  used  to  determine  the  results   since  no  reports  have  been  published  that  contain  the  required  data.    Two  major   differences  between  the  standards  were  specifically  analyzed,  the  interior  lighting  power   densities  and  the  annual  on-­‐site  renewable  energy  requirements.    While  the  direct  energy   consumption  of  the  interior  lights  was  analyzed  the  impact  of  the  reduced  lighting  power   was  not  accounted  for  in  terms  of  increasing  the  heating  loads  and  reducing  the  cool  loads.     Correct  modeling  of  the  interactions  was  beyond  the  scope  of  this  project  and  is  best  done   thorough  detailed  hourly  simulation  models  such  as  EnergyPlus.     All  of  the  results  presented  in  Tables  16  and17  include  the  energy  consumptions  associated   with  the  interior  equipment  in  each  of  the  buildings.    Interior  equipment  refers  to  any   electrical  device  that  plugs  into  an  outlet  (typically  not  hard  wired)  and  any  interior   process  loads.    Plug  loads  in  offices  would  include  computers,  monitors,  printers,  copy   machines,  vending  machines,  refrigerators,  coffee  makers,  and  desk  lamps  for  task  lighting.     In  addition,  hotels  would  also  have  televisions,  microwave,  hair  dryers,  table  and  floor   lamps  in  each  guest  room.    Process  loads  include  the  clothes  washers  and  dryers  in  hotels.     Table  18  is  the  summary  of  the  interior  equipment  energy  consumptions  that  were   modeled  in  the  EnergyPlus  simulations.                   Table  18  Interior  Equipment  Energy  Consumptions     Medium  Office   Small  Hotel   Standard   kWh   Mcf   kWh   Mcf   90.1-­‐2010   211,799   0   164,169   388   189.1-­‐2011   235,822   0   158,386   388                                   12.0  REFERENCES     ASHRAE.  (2004).  ANSI/ASHRAE/IESNA  Standard  90.1-­‐2004:  Energy  Standard  for  Buildings   Except  Low-­‐Rise  Residential  Buildings.  Atlanta,  GA:  American  Society  of  Heating,   Refrigerating  and  Air-­‐Conditioning  Engineers.   PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-107  

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Dr.  Sarah  Slaughter   [App. G]-12 Final  Report       ASHRAE.  (2009).  ANSI/ASHRAE/USGBC/IES  Standard  189.1-­‐2009:  Standard  for  the  Design   of  High-­‐Performance  Green  Buildings  Except  Low-­‐Rise  Residential  Buildings.  Atlanta,  GA:   American  Society  of  Heating,  Refrigerating  and  Air-­‐Conditioning  Engineers.     ASHRAE.  (2010).  ANSI/ASHRAE/IESNA  Standard  90.1-­‐2010:  Energy  Standard  for  Buildings   Except  Low-­‐Rise  Residential  Buildings.  Atlanta,  GA:  American  Society  of  Heating,   Refrigerating  and  Air-­‐Conditioning  Engineers.       ASHRAE.  (2011).  ANSI/ASHRAE/USGBC/IES  Standard  189.1-­‐2011:  Standard  for  the  Design   of  High-­‐Performance  Green  Buildings  Except  Low-­‐Rise  Residential  Buildings.  Atlanta,  GA:   American  Society  of  Heating,  Refrigerating  and  Air-­‐Conditioning  Engineers.     Crawley,  D.B.,  L.K.  Lawrie,  F.C.  Winkelmann,  W.F.  Buhl,  Y.J.  Huang,  C.O.  Pedersen,  R.K.   Strand,  R.J.  Liesen,  D.E.  Fisher,  M.J.  Witte,  J.  Glazer.  (2001).  EnergyPlus:  Creating  a  New-­‐ Generation  Building  Energy  Simulation  Program.  Energy  and  Buildings  33:319–331.   Amsterdam:  Elsevier  Science.     Goodrich,  A.,  T.  James,  M.  Woodhouse.  (2012).  Residential,  Commercial,  and  Utility-­‐Scale   Photovoltaic  (PV)  System  Prices  in  the  United  States:  Current  Drivers  and  Cost-­‐Reduction   Opportunities.  Golden,  CO:  National  Renewable  Energy  Laboratory,  Technical  Report   NREL/TP-­‐6A20-­‐53347.     Jaing,  W.  R.E.  Jarnagin,  K.  Gowri,  M.  McBride,  B.  Liu.  (2008).  Technical  Support  Document:   The  Development  of  the  Advanced  Energy  Design  Guide  for  Highway  Lodging  Buildings.   Richland,  WA:  Pacific  Northwest  National  Laboratory,  PNNL-­‐17875.     Liu,  B.  and  J.  Zhang.  (2011).  189.1  Progress  Indicator  Report:  Energy  Use  Comparison   between  189.1-­‐2009  and  90.1-­‐2010.  ASHRAE  Standard  189.1  Committee,  ASHRAE  Annual   Meeting,  June  29,  2011,  Montreal,  Canada.       Long,  N.,  E.  Bonnema,  K.  Field,  and  P.  Torcellini.  (2010).  Evaluation  of   ANSI/ASHRAE/USGBC/IES  Standard  189.1-­‐2009.  Golden,  CO:  National  Renewable  Energy   Laboratory,  Technical  Report  NREL/TP-­‐550-­‐47906.   Thornton,  B.A.,  W.  Wang,  M.D.  Lane,  M.I.  Rosenberg,  B.  Liu.  (2009).  Technical  Support   Document:  50%  Energy  Savings  Design  Technology  Packages  for  Medium  Office  Buildings.   Richland,  WA:  Pacific  Northwest  National  Laboratory,  PNNL-­‐19004.     Thornton,  B.A.,  M.I.  Rosenberg,  E.E.  Richman,  W.  Wang,  Y.  Xie,  J.  Zhang,  H.  Cho,  V.V.  Mendon,   R.A.  Athalye,  B.  Liu.  (2011).  Achieving  the  30%  Goal:  Energy  and  Cost  Savings  Analysis  of   ASHRAE  Standard  90.1-­‐2010.  Richland,  WA:  Pacific  Northwest  National  Laboratory,  PNNL-­‐ 20405.   13.0  WEB  SITES     PVWatts:  www.nrel.gov/rredc/pvwatts.   PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-108  

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Dr.  Sarah  Slaughter   [App. G]-13 Final  Report       ASHRAE  DATA  METHODOLOGY:  Water  Use  Analysis     The  following  is  a  summary  of  water  use  savings  estimates  made  by  WMI.    The  starting   point  for  all  of  the  estimates  was  the  water  use  given  in  the  data  temples.     Plumbing  Fixtures:     To  calculate  the  saving  for  plumbing  fixture  related  measures  WMI  uses  a  model  that   considers  multiple  factors.    The  number,  type,  and  flow  rate  of  the  existing  fixtures  help  us   to  determine  the  overall  existing  condition  of  the  domestic  fixtures.    Often,  the  fixture  flow   rates  differ  from  the  designed  flow  rates.  For  example,  many  1.6  gpf  toilets  fitted  with   1.6gpf  diaphragm  flushometers  typically  use  between  1.8  and  2.5  gpf.      Once  existing  flow   rates  are  determined,  frequency  of  usage  is  then  calculated  based  on  building  demographic   information.   Usage  is  affected  by  many  factors:  the  population  of  a  facility,  the  hours  of  use,  the  average   number  of  times  a  person  will  use  the  facilities.    Another  factor  is  the  split  of  the  population   between  male  and  female.  Studies  have  shown  that  on  the  average  people  need  to  use  the   toilets  an  average  of  once  every  two  hours  and  when  available,  men  will  use  the  urinals   about  75%  of  the  time.     The  basic  formula  is  as  follows:     Existing  usage  model  =  Population  x  uses  per  day  (decreased  by  the  flush  factor)  x  days  of   use  per  year  x  the  average  existing  flow  rates  of  the  fixtures.     Post-­‐program  usage  model  =  Population  x  uses  per  day  (decreased  by  the  flush  factor)  x   days  of  use  per  year  x  the  average  proposed  flow  rates  of  the  fixtures.     Showers  are  also  included  in  the  hotel  template  calculations.    These  were  based  on  an   average  of  sampled  flow  rates  for  showers  in  hotels  throughout  the  US  and  usage  was   calculated  using  a  conservative  shower  duration  length  of  8  minutes  per  shower.     The  post-­‐program  annual  gallons  saved  =  the  difference  between  the  two.     ASHRAE  189.1  was  used  as  the  basis  for  efficient  plumbing  fixture  selection  and  use.     Landscape:     Water  use  for  landscape  irrigation  in  high  performance  landscapes  is  based  on  proper   selection  of  plant  material,  proper  soil  preparation,  and  watering  based  on  the  actual  needs   of  the  plant  material  in  the  landscape.    The  basic  principles  of  good  landscape  water   practices  include:     1. Design  Landscape  to  keep  water  (rainwater,  storm  water,  and  irrigation  water)   where  it  falls.   2. Prepare  soil  shape  and  content  to  capture  and  hold  water   PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-109  

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Dr.  Sarah  Slaughter   [App. G]-14 Final  Report     3. Design  landscape  to  minimize  the  need  for  irrigation  water  (eliminate  irrigation   systems  where  possible)   4. Minimize  turf  areas  and  choose  adapted  and  drought  tolerant  plant  materials   5. Meter  or  sub-­‐meter  installed  irrigation  systems   6. Capture  and  use  on-­‐site  sources  of  water  and/or  reclaimed  water   7. Design  efficient  irrigation  system  using  US  EPA  WaterSense  principles   8. Practice  proper  maintenance.     Water  use  is  based  on  evapotranspiration  of  the  plant  material  actually  used.    The  equation   is:       Water  Demand  =     [Area  of  landscape  X  (ETo  X  Kc)-­‐  Effective  rainfall)]  X  [FF]  X  0.623   DU   • ETo  –  Reference  evapotranspiration   • Kc  –  Crop  Coefficient   • Effective  rainfall  –  assume  25%  (WaterSense)   • DU  –  Distribution  Uniformity   • FF  –  Freeze  factor  when  system  off  in  Winter   • O.623  –  Gallons  per  inch  on  one  square  foot  of  area       Monthly  evapotranspiration  for  each  site  was  taken  into  consideration  along  with  plant   material  and  practices  common  to  those  areas.    Savings  were  based  on  the  difference   between  the  amounts  of  water  given  in  the  data  templates  and  the  water  use  based  on  good   practice  for  all  of  the  eight  principles  outlined  above.    These  principles  are  reflected  in   ASHRAE  189.1               PREPUBLICATION COPY—SUBJECT TO FURTHER EDITORIAL CORRECTION   C-110