Both energy and water price escalation rates are included in the sensitivity analysis, and the potential future opportunities for Net Savings under different conditions can be graphically represented with the example of the Miami Office and Hotel Figure Means Square Foot Cost Estimator in that location with April cost data, modified to reflect the specific technical characteristics of the prototype buildings. Therefore, the initial investment costs for some of the Green Globes projects was over 2 times the investment costs for the baseline prototype buildings. 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. For the economic efficiency analysis to be used effectively in decision-making, the early project planning and scope development through detailed design development and implementation would include:.
As noted earlier, the selected locations represent 5 climate zones, and a range of urban and non-urban markets. Three projects have initial investment costs that are less than the baseline prototype buildings, and therefore provide benefits without additional costs Table The PNNL technical and analytical support included modeling building energy performance using EnergyPlus models and parameterized cost curves to incorporate cost efficiency considerations. In cases where the Net Savings is negative, it is not. As noted in the Methodology section of this report, GBI provided the expected energy and water savings for 11 projects based on communications with project teams, since these expected savings are not required as part of the Green Globes reporting requirements.
When the economy is growing slowly, there are fewer opportunities for capital investment and the discount rate declines.
The second part of the study tested casee applicability of the analytical tools to DOD facilities going forward, as input to the DOD comprehensive strategy.
Using this price the total panel costs and the building costs per square foot can be calculated. All of these projects would perform better than the current default option i. The initial investment costs for each prototype building in each location was calculated using R.
A straight line through the origin is shown that connects the average for each building type.
In those conditions, considering the Long-term Cost-Benefit, all building types and all locations analyzed in this study would be economically efficient investments. In discussions with the staff of ASHRAE, Green Building Initiative, and the US Green Building Council, those organizations agreed to provide detailed cost and benefit data for the prototype buildings in locations that were similar to or near the selected locations. The National Academies Press.
Local municipal solid waste and hazardous waste costs were determined through municipal agency publications and published rates Table 6 and Appendix Dwith data source references.
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Timing of Economic Efficiency Analysis for Decision Support As mentioned previously, the DOD requires an economic efficiency analysis with Form for the initiation of the military construction authorization process.
Office small, medium, large Retail stand-alone, strip mall School primary, secondary Healthcare outpatient, hospital Hotel small, large Warehouse Restaurant quick, full-service Apartment mid-rise, high-rise. Fundamentally, the technical approach was to use the ASHRAE Advanced Energy Design Guides energy savings for each specific building and location which also had the incremental first costs. 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 bbi efficiency calculations for different locations across the continental U.
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Example of Sensitivity Analysis for Time Period and Discount Rate Sensitivity Analysis on Factor Price Escalation Another major area of uncertainty related to this study is future prices for municipal utilities such as electricity, natural gas, water and sewage over the next years.
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.
For this study, the Long-term cost-benefit used throughout this report is defined as: The economic efficiency analysis, and the related data collection, can be also used to track actual performance relative to srudy expected benefits.
OMB Circular A provides the following definitions:. This is the current situation for both Standards Hbi and Approaches for Transformational Change.
This analysis calculated the Net Savings and other economic efficiency measures using the energy cost savings relative to the incremental construction costs i. The Net Savings results for the building types follow a similar sequence by location.
No data is currently collected in the Green Globes certification process related to expected reductions in solid waste municipal or hazardous or operations and maintenance costs general labor and equipment, cleaning, or landscapingand therefore no data was provided by GBI for this study, so those benefit-cost categories were excluded from this analysis. The consultant provided materials and met with the staff from the selected installations, HQ, construction agents, and Office of Secretary of Defense to demonstrate and test the applicability of the analysis methodology developed in this study to actual DOD projects, and to obtain feedback on the applicability of the analytical approach and tools as input to the development of the DOD comprehensive strategy.
Then, once the standard is finalized, PNNL determines the energy savings of the new.
Therefore, the initial investment costs for some of the Green Globes projects was over caase times the investment costs for the baseline prototype buildings. Long-Term Cost-Benefit The Net Savings for both building types in all five locations are greater than zero, indicating that 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.
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Furthermore, the results for Standard The final chapter provides potential factors and approaches that the DOD should consider in developing a comprehensive strategy for military construction and renovation that includes standards for energy efficiency and sustainable design. Water use for each building type was calculated using current usage rates as reported by industry sources. Green Globes rating and certification is attainable for a wide range of commercial and government buildings, and enables building owners to credibly market their environmental responsibility to shareholders, tenants, and their community.
LEED certification provides independent, third-party verification that a building or community was designed casf built using strategies aimed at achieving high performance in five key areas of human and environmental health: In particular, the discussion raises certain challenges and opportunities associated with economic efficiency evaluations in the following areas:.