NYSERDA Assistance in GGBP Compliance

Scott Kessler

NYSERDA Project ManagerNYSERDA Project Manager

January 28, 2011

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What is NYSERDA?What is NYSERDA?

• Public benefit corporation• Public benefit corporation 

• Primarily funded by System Benefits Charge on electric and natural gas billsCharge on electric and natural gas bills

Mission StatementAdvance innovative energy solutions in ways that gy yimprove New York’s economy and environment.

NYSERDA's Vision StatementTo serve as a catalyst advancing energy innovation andTo 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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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 environmentcleaner environment

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E Effi i P tf li St d d (EEPS)Energy Efficiency Portfolio Standard (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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F C i l R l E t tFocus on Commercial Real Estate

Drive portfolios to invest in energy efficiency using

Drive portfolios to invest in energy efficiency using

Provide benchmarking tools and support 

Provide benchmarking tools and support efficiency using 

NYSERDA programsefficiency using 

NYSERDA programs sector‐specific needs sector‐specific needs 

Identify poor f i iIdentify poor f i i

Track improvement i 2015/2030 d

Track improvement i 2015/2030 dperforming properties 

for program supportperforming properties for program support

against 2015/2030 and NYSERDA goals

against 2015/2030 and NYSERDA goals

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Wh I t i S t i bilit ?Why Invest in Sustainability?Why Invest in Sustainability?

Increase rent / decrease vacancy

Enhance green image

Decrease operating costs

Comply with government mandates

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Rent Spreads : Class A & B Office SpaceRent Spreads : Class A & B Office Space

Class A Rent Class B Rent

7Source: “Office Market Trends New York City, Grubb & Ellis, Q2 2008.

A C h i A h t St t i I t tA Comprehensive Approach to Strategic Investments

Portfolio‐wide happroach

Improved

Targeted investments

Improved efficiency

Improved NOI

investmentsefficiency

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F CRE P ti i tiOwners in Program: 32% of NYC Market

Focus CRE Participation

139 M SF Participating* 

g

p gof which: 59.5 M SF Benchmarked

Portion of NYC MarketPortion of NYC Market

Benchmarked 14.0%

Energy Audit 2.6%

*Not including additional 2M SF in NY State, of which 1 M SF benchmarked

Lease Analysis 2.0%

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of which 1 M SF benchmarked

F CRE L A l i T lFocus CRE Lease Analysis ToolFOCUS CRE LEASE ANALYSIS REPORT

D t t t d One New York Avenue

163,139$

2,888,110$ Cost of Measure Net of Subsidies and Grants

Project and Building Overview

Subsidies and Grants

6 Number of Measures

Annual Cost Savings 478,046$

2.6%

97 4%

Tenant Opex Clause BreakdownBy Rentable Building Area

Vacancy

Fixed Factor

Escalatable - Capex Passthrough

Escalatable - No Capex

Project

•Demonstrates costs and returns according to 

h l Owner Financial Results

$200

$300

$400

$500

$600

Thou

sand

s

Annual Owner Cash Flow

7.9%

31.1%

57 5%

10 Year Composition of Owner Cash Flow

Current Escalatable Leases

Fixed Factor Leases

Electric Rent Inclusion

Capex Passthrough

97.4%each lease•Present value of future 

i ll ti5 Year

Net Present ValueSavings 14%Increased Asset Value

Total Net Present Value

10 Year

7% 85%

Metric 3 YearMetric

(850,000)$ (155,000)$ 5,660,000$

(2,020,310)$ (1,472,736)$ Savings Only

3 Year 10 Year5 Year

1,170,406$ 1,316,322$ 315,301$

5,345,705$ Savings and

$0

$100

T

Year

3.5%

57.5%

Vacancies

New Escalatable Leases

Returns* Simple Recovery

savings as well as time frames for ROIF t t d Internal Rate of Return

47%27% 128%20%

196%

2%

-5%-29%

-10%

1,135,000$

Tenant Financial Results

Metric 3 Year 5 Year

Return on Capital

Net Present Value 525,000$ 860,000$

10 Year

* 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.

Capex Passthrough

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

Returns

•For tenants and owners•Publicly Available

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NYSERDA P St tAudit FlexTech/Project New

NYSERDA Program StructureAudit Program

FlexTech/ Technical Assistance Program

Project Identification/ Energy Study

New Construction Program

Program

E i ti F ilitiExisting Facilities ProgramProject 

Implementation

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Fl T hObjective: Provide customizable fuel neutral cost‐shared energy studies

FlexTechObjective: Provide customizable, fuel neutral cost‐shared energy studies

Cost Share 50/50 energy related

Incentive CapCon Edison: $1 000 000

Areas of Focus

– 50/50 – energy related portion

– Con Edison: $1,000,000Upstate: $500,000

• Feasibility Studies

• Energy Master Plans

E P

• CHP/Renewables

• Load Curtailment

E Ad i C l i

Areas of Focus

• Energy Procurement

• (Retro)commissioning

• Energy Advisor Consulting

Use a NYSERDA Consultant or your own!

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B h ki d O ti Effi i PBenchmarking and Operations Efficiency Program

h k &•Benchmarking services & on‐site energy assessments

•Performed by FlexTechyConsultants•50/50 cost‐share on projects > $7 000> $7,000

•Additional  services available through Fl T h f d il dFlexTech for more detailed energy studies and through Existing Facilities for implementation incentives 

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E i ti F iliti P f B d I tiGeneral:

• Incentive is paid on the energy savings over 1 year

Existing Facilities: Performance Based Incentives

p gy g y

• Cap:  – 50% of project cost, 75% for projects w/ demand response (**consider 

project & benefit bundling**), 1 yr. paybackproject & 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 establishAll 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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E i ti F iliti P f B d I tiExisting Facilities: Performance Based Incentives

Program Component Con Edison Territory Upstate

Electric Efficiency $0.16 / kWh $0.12 / kWh

Gas Efficiency $2.00 / therm $1.50 / thermy $ / $ /

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

Combined Heat and Power$0.10 / kWh + $750 / kW

$0.10 / kWh + $600 / kW

$ 2 million facility cap, $5 million for IPE

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$ 2 million facility cap, $5 million for IPE

E i ti F iliti P lifi d I ti• Applicants can receive $/unit rebates

Existing Facilities: Prequalified Incentives

• 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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N C t ti PNew Construction Program

Objective• Transform the way buildings are designed and builtg

Services• Technical assistance, computer modeling, commissioning 

• Incentives for energy efficient equipment and systemsG B ildi l i i•Green Building planning assistance

•Bonus incentives for LEED credits

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Li hti /S b t i A i tLighting/Submetering Assistance

• Commercial Lighting Program

– Trained Business Partners available 

– All projects receive design QA/QC

– List of partners available at www.therightlight.orgp 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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Oth T lOther Tools

• NYSERDA‐funded benchmarking training available through Association for Energy g gyAffordability

• CUNY Building Performance LabCUNY Building Performance Lab

• Northwrite Energy Information System InstallationInstallation

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C t t I f tiContact Information

Scott Kessler

NYSERDA NYC Office

212 971 5342 x 3022212.971.5342 x 3022

sbk@nyserda.org

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