Bottlemaker, building owners embrace efficiencies & save big

Greg Rhames has been studying energy efficiency like Humphrey Bogart on the case of the Maltese Falcon.

Any clue, no matter how tiny, can yield a break in the case. And in Rhames' Madera manufacturing plant, it's the little things that add up big. Real big.

Rhames, energy manager for Verallia, a subsidiary of winemaker Saint Gobain, rattles off the upgrades and system refinements at his facility like only somebody intimately familiar with their complex industrial workings can. His fixes havve resulted in energy cost savings of about 20 percent.

Put another way: Utility bills have gone from $1 million a month some years back to about $800,000.

"A little savings can go a long way," Rhames says.

Less power, more cash

Energy efficiency continues to gain proponents across the corporate spectrum, especially as its value can be immedicately seen in reduced energy and operations costs. With recent federal encouragement through the American Recovery and Reinvestment Act, local governments have taken up the banner, installing myriad retrofits and sometimes preventing economic-related layoffs in the process.

Energy efficiency: Some states perform better than others

The top states for encouraging energy efficiency are Massachusetts at No. 1 and California at No. 2, according to a clean energy research organization.

Both have strategies and programs in place to enhance the clean energy mix of their energy production and encourage a shift to cost-saving measures and clean energy. Their efforts have been followed, mimicked and analyzed many times.

But the bottom performers? Not so much.

"There is plenty of room for improvement," say Michael Sciortino, Rachel Young and Steven Nadel in "Opportunity Knocks: Examining Low-Ranking States in the State Energy Efficiency Scorecard." They work for the American Council for an Energy Efficient Economy, a nonprofit research and policy analyst.

The worst 10 states in promoting energy efficiency in descending order, with the last being the worst, are: South Dakota, Alabama, Missouri, West Virginia, South Carolina, Oklahoma, Kansas, Mississippi, Wyoming and North Dakota. ACEEE ranks the states according to policies and programs that advance efficiencies in buildings, transportation and industry.

Trend to slash high-rise electric bills sweeps industry

King Kong immortalized the Empire State Building -- more than once.

And while its status as the biggest and tallest has been eclipsed a number of times since Pres. Herbert Hoover turned on the lights May 1, 1931, the iconic skyscraper continues to lead the nation. However, now it's gaining fame as perhaps the best known energy efficient high-rise.

Others have followed, drawn by the prospect of saving money in a turbulent economy through relatively simple and cost-effective upgrades that can pay off in a matter of years. The U.S. Green Building Council says green commercial building retrofits actually exceeded new construction some months in 2011.

"Deep energy savings (30 percent to 40 percent) can be mined from existing buildings," says a July 2011 study by Vancouver, Wash.-based New Buildings Institute.

Energy Star fast tracks

A barometer of the trend has been the U.S. Environmental Protection Agency's list of cities with the most buildings qualifying for Energy Star status. Energy Star certified buildings use an average of 35 percent less energy and are responsible for 35 percent less carbon dioxide emissions than typical buildings. Buildings are responsible for about 40 percent of carbon dioxide emissions, while commercial buildings make up half that.

Energy Efficiency in the Central Valley

Green Building Seminar: Save Energy and Cash!
The U.S. Green Building Council – Central California Chapter has partnered with Economic Development Corporation Clean Energy Cluster to present Energy Efficiency in the Central Valley. Join us as we discover the energy efficiency status and outlook for the City of Fresno. Get a close look at cost savings programs, tools, technologies, and resources which are available and how to achieve their benefits for your residential/commercial projects or home through presentations from City of Fresno, PG&E, and FIGtree Energy Resource Company. Gain industry knowledge through educational breakout sessions which will include Energy 101, What is LEED, Energy Efficiency Training, and Green/Energy Efficient Buildings.

Who should attend: Community Leaders, Architects, General Contractors, Sub-contractors, Engineers, LEED Project Managers, Project Developers, and Home Owners.

Why you should attend: Green building begins with energy efficiency. Connect with the latest technology, trends, and industry professionals to learn where Fresno is, where we are going, and how you can get there. Benefits to participating businesses include cost savings, increased competitive advantage, and access to technical and financial resources.

Details & Registration
Monday, August 15, 2011 from 9:00AM-12:00PM
University Business Center, CSUF - Craig School of Business

For more information:

REGISTER NOW!

245 buildings vie for title of nation's most energy efficient

This year's national competition to extract the most energy savings from a building pits middle schools and car dealerships vs. Wall Street and Park Avenue high-rises.

May the best building win.

The competition, dubbed Battle of the Buildings, is staged by the U.S. Environmental Protection Agency's Energy Star program. Teams from 245 buildings will install energy efficient lighting, heating and cooling; adopt intensive building management systems that closely monitor and adjust energy use according to occupancy and other factors; and modify behaviors and practices that could unnecessarily cost kilowatt hours.

Of course, there are other measures such as cool roofs, insulation, windows and weatherization upgrades that can result in big savings, too.

EPA Administrator Lisa P. Jackson said, “We’re harnessing our nation's innovative capacity to save money on electric bills, create a cleaner environment and protect the health of American families.”

A winner will be named in November.

This year's competition is far greater than the inaugural event last year, in which teams from 14 buildings saved $950,000 and reduced greenhouse gas emissions amounting to the yearly electricity use of about 600 homes.

Last year's winner was Morrison Residence Hall on the University of North Carolina campus in Chapel Hill, N.C. The 10-story, 200,000-square-foot dormitory was built in 1965 and achieved a 35.7 percent reduction on its annual energy bill for a $250,000 savings.

The EPA says educating the public to the benefits of reducing energy use in the 5 million buildings in which people in this country "work, play and learn" is important because the sector consumes about 20 percent of the nation’s energy use. It also produces a similar percentage of the nation's greenhouse gas emissions and forces Americans to fork over more than $100 billion a year.

Those interested can follow along with the contestants to see what their strategies are and what they end up doing to reduce energy loads. The variety of the buildings this year is pretty interesting. Buildings range from the Experience Music Project Science Fiction Museum in Seattle with perhaps the highest energy use intensity rating, or EUI, in the group with 536.9 to the offices of Norandex, a building supplier, in Rochester, N.Y. with a rating of 47.5. The rating is derived by taking energy use and dividing by square footage. The higher the number, the higher the energy use.

Other buildings I found interesting were the Marriott Fullerton Hotel with an EUI of 153.6, the Helmsley Building at 230 Park Ave. in N.Y. with an EUI of 228.2, the Caterpillar AC Building in Mossville, Ill. with an EUI of 282.2 and the 450 Sutter Building in San Francisco with an EUI of 178.9.

Here's to extreme energy savings.

Photo: Experience Music Project building in Seattle under Space Needle.

Net-zero construction gains a foothold

A net-zero building consumes no more energy than it produces.

Cool idea but until recently was about as practical as living off the grid in a yurt. OK for some but hardly a sales feature Joe Sixpack would embrace.

The mere mention was limited to science fiction stories like "Logan's Run," in which the hero escapes with his life from a closed net-zero society of limited resources that could support only a limited population. In 2116, residents in the story who turn 21 are killed.

Net zero, however, has eclipsed such apocalyptic visions. In fact, it's arrived.

Down in Fort Lauderdale, a company that last year decided to build all its new locations to the exacting Leadership in Energy and Environmental Design, or LEED, platinum standards decided to go a step further. TD Bank, which has more than 1,250 locations on the East Coast, is building a bank officials say will be the first registered in the U.S. Department of Energy's net-zero energy building, or NZEB, classification system.

The reason, said Jimmy Hernandez, a TD Bank spokesman based in New Jersey, is relatively simple.

"It just makes sense," he said.

Hernandez said bank officials learned that for a little more than what achieving LEED energy efficiency standards cost, they could add solar panels and actually produce more energy than they consume. And the solar panels will eventually pay for themselves, he said.

The bank will consume about 97,000 kilowatt hours of electricity a year to operate but produce at least 100,000 kWh.

Buildings consume about 40 percent of the overall energy and 70 percent of the electricity in the United States, according to the National Renewable Energy Laboratory. Many efforts are under way to reduce that and in the process lower production of greenhouse gases.

Those measures include sustainability policies from some of the largest publicly traded U.S. companies, measures by states to increase efficiency through building codes (California's new rules took effect Jan. 1), efforts by the U.S. Department of Energy to fund energy efficiency retrofits in municipal government buildings across the country, the whole house and passive house movements to increase efficiency in residential and commercial buildings and a number of others.

An NREL report, "Zero Energy Buildings," says "energy consumption in the commercial building sector will continue to increase until buildings can be designed to produce enough energy to offset the growing energy demand of these buildings."

To address that trend, the U.S. Department of Energy is seeking to develop the technology and a knowledge base for cost-effective zero-energy commercial buildings by 2025. NREL already has created a classification system for net-zero energy buildings to aid in the standardization process.

Buildings aren't the only target. A move is afoot in the San Joaquin Valley to bring solar to the region's farms and use untapped or marginal lands to produce energy. That effort remains in its infancy but could show big dividends and additional revenue streams to farmers, who are themselves big energy users.

Photo: TD Bank branch in Fort Lauderdale, Florida.

US builds LEED embassy in Addis Ababa

President Obama in his State of the Union address challenged America to get 80 percent of its electricity from clean energy by 2035.

Optimistic? Perhaps. But look at it this way: Many of the heavyweights in corporate America already have jumped on the energy efficiency and sustainability bandwagon. GM, GE and Procter & Gamble are among recent professed converts. And U.S. government agencies have been going all out with the concept, doing more with less energy as far away as Addis Ababa, Ethiopia.

The site on the African continent is rather exotic and about 7,000 miles from the nation's capital. But a new building there -- that integrates green building techniques and was one of the first Leadership in Energy and Environmental Design, or LEED, registered facilities in Ethiopia -- provides a glimpse of evolving building trends regardless of location.

The facility, the $157 million U.S. Embassy, features high-efficiency mechanical chillers; variable frequency drives, or VFDs, for all pumps, fans and motors over 5 horsepower; instantaneous water heaters; and a building automation system, said Christine T. Foushee with the U.S. Department of State's Bureau of Overseas Buildings Operations, in an email.

"The automation system allows the facility manager to view equipment consumption, schedule equipment run-times, and shut down systems when they are not required," Foushee said.

The embassy, which was completed last fall and dedicated this week, measures about 205,000 square feet and covers several buildings at the foot of Entoto Mountain, according to officials. The complex provides about 1,000 jobs. The builder was B.L. Harbert International of Birmingham, Ala., and the architect Page Southerland Page of Arlington, Va.

Other energy-saving features at the embassy include occupancy sensors that automatically turn off lights, automatic daylight dimming illumination for fixtures adjacent to windows, energy efficient compact fluorescents and light-emitting diode, or LED, lamps and electronic lighting ballasts. Energy saving is estimated to be 14 percent lower than the American Society of Heating, Refrigerating and Air-Conditioning Engineers standard established in 2004.

And more State Department buildings like the embassy are coming. The Bureau of Overseas Buildings Operations has seven projects in design or construction in Africa.

The energy efficiency movement and push to incorporate renewable energy and alternative fuels are well on their way. In the just released "State of Green Business 2011" report, Joel Makower and the editors of GreenBiz.com write that a dramatic shift is occurring in business despite the lingering effects of recession.

"Companies are thinking bigger and longer term about sustainability — a sea change from their otherwise notoriously incremental, short-term mindset," the report says. "And even during these challenging economic times, many have doubled down on their sustainability activities and commitments."

The Obama Administration directed $3.2 billion under the American Recovery and Reinvestment Act to the Energy Efficiency and Conservation Block Grant program, targeting inefficient lighting and electrical systems across the country for retrofits. Once completed, the program will enable local governments and others to reap huge saving on utility bills. And it will no doubt provide a further example to businesses and residents that they can do the same thing.

Likewise, domestic security efforts by the U.S. military to ween itself from imported fuel offer a high-profile example to consumers. Last month for instance, the Navy said at a symposium that is moving forward with aggressive targets, including reducing petroleum use in its commercial fleet by 50 percent by 2015 and getting half its energy from alternative sources by 2020.

Obama said: "Some folks want wind and solar. Others want nuclear, clean coal and natural gas. To meet this goal, we will need them all."

Just what technology will win out or if all alternatives will be embraced remains a question. The Greenbiz.com report says great transformation is taking place. But its authors ask whether the public take notice and whether political leaders will "position themselves at the front of this parade?"

That of course depends on many factors. Economics will play a big role. Renewable energy remains a premium, but parity is coming closer with technological advances. And there's the price of oil, which is trading in the $91 per barrel range and is forecast to climb to $105 in the next year by oil-price.net.

'Passive' house saves 90% on energy bills

The Cleveland Museum of Natural History plans to build a house on its grounds that will be so well insulated, so weather tight and so efficient that it will need no furnace.

That's right, no furnace. And Cleveland can have some nasty, bone-chilling weather.

The house is of the "passive" variety, a movement gaining major steam in Europe and apparently here too. The superinsulated home boasts 18-inch walls, triple-pane and glazed windows and overall efficiency that should make it one of the museum's biggest attractions when the house opens for three months in June 2011.

"You can walk around barefoot in the middle of winter where there are no drafts, no cold spots," said David Beach, director of GreenCityBlueLake Institute, which is the center for sustainability at the museum, in a video on the official site. "And it's a wonderful place to live."

No doubt. But it's hardly the norm.

Buildings account for about half of global energy consumption and greenhouse gas emissions. There's a big push nationally and worldwide to address that with retrofits, upgrades and better building practices through efforts like the U.S. Green Building Council's LEED building certification system, which was designed to improve energy savings, water efficiency and CO2 emissions reduction.

Adoption of more stringent building practices would make a big dent in greenhouse gas emissions and energy use.

But for consumers adding energy efficiency means lower energy bills. Way lower with a super-insulated house. For instance, my house was built in 1961 with 2-by-4 walls, single-pane windows and no insulation in the floors. I blew in a bunch more insulation in the ceiling, replaced the windows and upgraded the heating system to a 95 percent efficient furnace. My bills dropped like a rock.

My co-worker Sandy Nax lives in a 1990s vintage home with 2-by-six walls and stock double-pane windows. He's got a better design. Even so, his cooling costs in the summer sometimes exceed $500 a month. Mine's smaller, and it's cheaper.

Both of us would love to lower our bills. Like many who chose the newspaper profession, we got used to low pay and being frugal. We lived in pretty dicey places at the start of our careers.

Many others trod the same road, learning along the way that saving money is practical.

The Cleveland Museum believes people will appreciate the benefits of the passive design once they tour the exhibit. Beach, the museum official, said he hopes the concept will catch on, certainly in his own city where it adoption by builders and architects could "bring industry to Cleveland." The Passive House Institute U.S. says, the design technique "provides a solution that puts true carbon-neutrality within reach. Today."

And why not. U.S. Green Building Council Central California Chapter official Loren Aiton has said that adding energy efficiency and other measures to buildings add relatively little to the overall cost.

Still, upgrades come at a premium. LEED standards are graduated, starting with little or no difference in cost to tacking on 4 percent to 10 percent or more. The higher gold and platinum standards cost more to implement. But the savings are greater.

Chuck Miller of Doty & Miller Architects, who designed the Cleveland project, said the passive house was crafted to look conventional inside and out. While materials cost more initially, he said, "it will be a more affordable house over time. It will use 10 percent of the energy of other homes."

Back to that furnace or lack of one. Miller said the house will boast "very sophisticated ventilation and heat recovery equipment."

My friend lives in a small town just south of Tacoma, Wash. and has ducted electric heat. The system is very inefficient. He weatherproofed his home and added a plug-in heater -- an EdenPure, pitched by Bob Vila -- that uses light bulbs to generate heat. He dropped his winter electric bill 40 percent. And the mobile heater keeps his house just as warm.

It just goes to show that the efficiency concept is sound and can be done in different ways.

At summer's end, the Cleveland house will be moved to a permanent site a few blocks from the museum where it will be sold to a family. There it will continue to save its owners money, even in winter. And that's saying something. For instance, Cleveland has an average January temperature of 30.7 degrees. When I looked on Weather Underground, it was 21.3 degrees with a wind chill of 13 degrees.

That passive family will be toasty.

And others could be too. I've written in the past about Ed McGrath of superinsulatedhouse.com who began pushing many of these ideas decades ago. I can't help but think he'd be impressed.

Photo: Passive house is the one in the center. Courtesy of Doty & Miller Architects in Cleveland

US, EU push toward energy efficiency

Energy efficiency is going global.

It's not just a bunch of true believers pounding fists on tables.

Last week in Lisbon, Portugal, the year-old U.S.-EU Energy Council brought up energy efficiency and clean energy technologies in a joint statement from the council and U.S. State Department, saying the concept has "effects across our foreign, economic and development policies."

The council ordered its Energy Security Working Group to pursue an aggressive list of clean energy issues. Officials said they "highlighted the importance of enhancing cooperation on energy efficiency in the buildings sector and products," recognizing "the mutual benefit of working towards common standards, convergent regulatory frameworks and effective incentives for the deployment of emerging clean energy technologies."

Also targeted were electric vehicles, energy storage, cellulosic and algal ethanol, and carbon capture and storage. The council praised the working group for its research into hydrogen and fuel cells, solar power and even nuclear fusion.

The emerging international consensus embracing the value of energy efficiency follows that of California. The state has successfully championed energy efficiency as a way to diminish the need for new energy generation since the anti-nuclear movement in the 1970s. Consumers, the federal government and a bunch of movers and shakers in corporate America have jumped aboard relatively recently.

By working together on energy, officials involved with the council say the U.S. and Europe can increase "mutual security and prosperity; underpinning stable, reliable and transparent global energy markets; and coordinating our regulatory regimes and research programs to speed the deployment of tomorrow’s clean and efficient energy technologies."

The bottom line? Economic growth and job creation. At least that's the line from the U.S. State Department. Climate change goals also factor in.

The U.S.-EU Energy Council brought together Secretary of State Hillary Clinton; Daniel Poneman, deputy secretary of the U.S. Department of Energy; EU High Representative Catherine Ashton; EU Energy Minister Freya Van den Bossche; and EU Commissioner for Energy Günther Oettinger.

Heavy hitters. But this is politics, and the actual effect of the effort may be minimal at first. This is especially true in this case. While energy efficiency received top billing, there was also quite a bit of time given to Ukraine's natural gas transmission and Nigeria's oil fields.

Still, my impression is that the more that energy efficiency is publicized, embraced and instituted, the more the common Joe and Josephine will give it a try. It's like my recent post about LED bulbs being hawked at hardware stores across the nation. They're a little expensive to install but worth it in the long run.

Times are changing.

Photo: Secretary of State Hillary Clinton & EU Foreign Affairs & Security Policy High Rep./European Commission VP Catherine Ashton

Energy efficiency movement gains steam

Energy efficiency doesn't boast the sex appeal of solar or wind power, but it gets results.

And influencing more people to champion the cause could siphon off a large resource of untapped energy savings. At least that's the conclusion of a study released this week by the American Council for an Energy-Efficient Economy, or ACEEE.

After all, the nation’s largest single user of energy -- accounting for about half -- is homes and commercial buildings, said William Fay, executive director of the Energy Efficient Codes Coalition, this week. Fay made his remarks at the Final Action Hearings for the 2012 International Energy Conservation Code in Charlotte, N.C. on Monday where building officials from across the country voted for a series of new building energy codes expected to improve energy efficiency in new buildings by 30 percent, according to BrighterEnergy.org.

The ACEEE study's authors said programs that motivate green behavior could lead to significant savings and should be implemented with greater zeal. "We need to design and build programs that change habits as well as light bulbs," they said.

The sentiment reflects that of Art Rosenfeld, the nuclear physicist and California energy commissioner, a pioneer and tireless advocate of energy efficiency. He was dubbed the Godfather of Green by KQED and told CBS news in a past interview that the United States' descent into an unrepentant energy guzzler can be explained simply: "Energy in the U.S. is dirt cheap. And what's dirt cheap is treated like dirt."

Rosenfeld adopted the position advocated by ACEEE early on, successfully working to change consumers' wasteful habits in California.

The state got the message -- with Rosenfeld's help -- back in the 1970s at the height of the anti-nuclear movement. To avoid building another reactor, the state went with energy efficiency, improving building and appliance standards. The result: the Rosenfeld Effect, which resulted in the flattening of the state's per capita energy use.

ACEEE's researchers made a number of recommendations for enhancing the acceptance of energy efficiency. One was increasing the visibility of energy using behaviors. One particular program, already offered by PG&E's smart meters, allows consumers to see more clearly how much power they consume.

The smart meter on my house enabled me to monitor power consumption of my new SEER 13 air conditioning unit. I had switched from an evaporative, or swamp cooler, and was worried about ballooning electric bills. Fortunately, those didn't come to pass, and my family was able to keep summer cooling bills relatively low, keeping the thermostat on 78 degrees.

We're still not great about dealing with vampire power -- the electronic devices all over the home constantly sucking energy and consuming as much or more than 10 percent of a home's power demand.

Changing habits can make a big difference to the environment, not just the bottom line. As Rosenfeld said, "To delay global warming, you get halfway there with efficiency."

Energy efficiency is what many refer to as the "low-lying fruit" in the move to clean energy. For instance, a recent report by Boulder, Colo.-based Pike Research estimates potential annual energy savings of more than $41.1 billion if all U.S. commercial space built as of 2010 were included in a 10-year retrofit program.

The next step in the clean energy movement is more costly.

Rosenfeld said renewables like solar and wind should be pursued once energy efficiency is addressed. "But renewables cost you money, while efficiency saves money," he said.

Calif. & Mass. top energy efficient states

When it comes to energy efficiency, California ranks No. 1.

At least that was the finding of the American Council for an Energy-Efficient Economy in its recently released 2010 State Energy Efficiency Scorecard report.

Massachusetts placed second and Oregon, New York and Vermont round out the top five.

"Governors, state legislators and officials, and citizens increasingly recognize energy efficiency — the kilowatt-hours and gallons of gasoline that we don’t use thanks to improved technologies and practices — as the cheapest, cleanest, and quickest energy resource to deploy," the report's drafters said.

The findings reflect those of a recent report by San Francisco-based Clean Edge Inc., which listed California just ahead of Massachusetts in a study listing the top clean energy states. That study listed innovation in multiple sectors as a key to developing a green economy.

In addition to states taking a leadership role in the energy efficiency movement by undertaking new policies and programs, the ACEEE report found:

• Alaska, Utah, Arizona and New Mexico showed the most improvement from last year's report by increasing investment in utility energy-savings programs, expanding state government initiatives and adopting better building codes. 
• State spending of $4.3 billion on energy efficiency in 2009 was about double that of two years earlier. 
• Twenty-seven states have adopted or are in the process of adopting energy efficiency resource standards that establish fixed, long-term energy efficiency savings targets. That's double the number four years ago. 
• Twenty states have adopted or are in the process of adopting improved building codes that stress energy efficiency. 
• California, Massachusetts and Washington have enacted greenhouse gas reduction targets related to transportation. 
• The injection of more than $11 billion in federal stimulus funding for state energy efficiency projects has helped create new programs that are saving money and putting people to work.

Would You Invest $30,000 To Reap A Return Of $250,000?

We here in Fresno, which is one of the hottest regions of California and has some of the highest power bills in the state, should have energy efficiency at the top of our green list.

Frankly, it boggles my mind that more property owners, legislators and policy makers still don't understand that energy retrofits are a great investment. Wouldn't you, as the headline to this article says, commit $30,000 to save $250,000 in expenses later?

Is there any investor who would not think that was a good return? Certainly, Chris Martin, director of energy management at University of North Carolina at Chapel Hill, thinks so. He led one of 14 teams across the country that participated in an EPA-sponsored Biggest Loser-style contest to shed the most energy weight, according to this New York Times story.

The Chapel Hill team spent $30,000 upgrading a residence hall on campus, and wound up slashing energy expenses $250,000, much of it by adjusting the heating and cooling system to run slower during moderate weather. All combined, the school cut energy use 36% .

The university engaged residents of the hall in the process. CityBiz Magazine said a touch-screen computer was installed in the dorm's lobby so students could track energy consumption. Each floor held energy-saving competitions, and reminders were posted in elevators, bathrooms, and common areas.

That means more money in university coffers. I don't know if Chapel Hill is strapped for cash, but I know a few campuses in California that would love the extra money.

Chapel Hill has seen the light, so to speak. Upgrades to 100 buildings on campus saved nearly $4 million last year, according to the New York Times. The average savings per building was $33,000. The average per-building investment: only $7,000.

"The payback is on the order of months, not years," Martin told the newspaper.

Other teams also got good returns for their investments. A Sears store in Maryland cut energy consumption 31.7%. A JC Penney outlet in Orange, Calif., reduced energy use 28.4%. Together, the 14 teams saved $950,000 on power bills.

Businesses and others in the San Joaquin Valley could probably reap good returns too. After all, temperatures reach triple digits in the summer. Businesses and families pay the price with heart-stopping power bills.

Retrofits and modifications such as these are the low-hanging fruit of the whole greening movement. Consider the iconic Empire State Building. A $20 million energy-efficiency upgrade, which includes more than 6,000 new windows, will shave $4.4 million annually off the power bill.
That's a payback of 4.5 years. Simply amazing.

Commercial building space in the United States covers a total of 79 billion square feet, and buildings, 80 percent of which are more than a decade old, are one of the leading sources of energy consumption and carbon emissions, said a recent report on commercial building energy efficiency by Boulder, Colo.-based Pike Research.

The report, "Energy Efficiency Retrofits for Commercial and Public Buildings," estimates potential annual energy savings of more than $41.1 billion if all commercial space built as of 2010 were included in a 10-year retrofit program.

Unfortunately, shredded budgets, the freezing of Property Assessed Clean Energy programs and an economic recession make it harder for businesses, homeowners and landlords to finance the upgrades.

But those who can manage it might enjoy a nice financial return.

(Photo of Morrison Hall by online wsj.com)

Energy audits to go mainstream?

There are a couple of ways to create wealth: cut costs or make more.

The faltering economy has boosted cost cutting in corporate energy use, leading a growing number of companies to install efficiency retrofits in their commercial and industrial facilities.

Makes sense to save on utility bills. Not every CEO has the money-generating potential of a Jay Z or Warren Buffett.

Colin Davis is watching the trend closely. The founder and CEO of Cambridge, Mass.-based kWhOURS Inc. just released a new product he hopes will take off. kW-Field is a software-based management platform that enables energy auditors to handle the huge and diverse amounts data collected when they scan big buildings for retrofit opportunities.

Davis said the commercial market has been growing consistently over the past several years. Green, he said, doesn't have to be sexy to make financial sense. The sector has been led by sustainability-minded Walmart.

"You can make great money on efficiency," Davis said.

Investments can pay off in a matter of a few years and cut energy bills from anywhere to 10 percent to 30 percent or more. Energy is a huge cost for many companies.

The energy auditing process is tough. I've done it. Counting thousands of lights is not fun or interesting and remembering whether Room 222 has T12 34 watt 4-lamp flourescent or already has several 28 watt T8s with digital ballasts is near impossible with a messy notebook.

Davis' product loads all an auditor's information on a laptop, including photos and even audio files. It also stores thermal images, utility bills and "reams of notes on operating conditions, schedules, light levels, air and power quality readings." The software then manipulates the data in whatever format is required.

Davis said in the couple weeks since his product has launched, "a ton of people" have signed up for the two-week trial and bigger players have shown interest.

Other companies venturing into the energy efficiency market offer verification of its big potential.

Eric Wesoff of Greentechmedia.com gave an indication when he wrote of a conversation with Solar City executives at the Solar Power International Show this week in Los Angeles.

Wesoff said Solar City officials told him their company's going big into the audit market, "offering a home tune-up free with every solar lease or solar purchase in California," for a limited time.

And the movement is likely coming to a house near you. In California, for instance, the state is set to adopt rules expanding the scope of the Home Energy Rating System, or HERS. HERS inspectors check the building "envelope," looking for anything that wastes energy.

Davis isn't convinced homeowners will pony up the willpower and cash necessary to make energy audits the next big thing in the residential market.

But who knows? Other players like Recurve and Energy Doctors are betting on the residential sector.

If my experience is any indication, energy upgrades make sense. My new air conditioner coupled with new doors, added attic insulation, improved ductwork and new double-pane treated windows generated low utility bills. I had some envious friends.

But my house is small, 1,278 square feet. I had an evaporative, or "swamp," cooler until this year. It's good for making the house bayou-like when the outside temp heats up past 95 degrees. My neighbor Juan convinced me a new AC wouldn't cost too much more in monthly electricity bills, explaining that he keeps his at 68 degrees and pays less than $300 per month. Juan lays asphalt and says he needs it cold after working on 130-degree blacktop all day. His house is about 200 square feet smaller than mine, however, and has lower ceilings.

The key to lower energy payments is looking at the whole building. One energy-saving element benefits another. Insulated floors, for instance, are a worthy upgrade, said John White, an Internet savvy AC contractor in North Carolina.

"Floor insulation is perhaps the most overlooked yet unbelievably best energy saving investments to be made," White wrote on his site, johnwhite.net. "An uninsulated 1500 Sq. Ft. floor over a crawl space located in an average climate ... will return about $300 per year savings when insulated to R-19."

It's all about the return. And these days any savings is a very good thing.

Photo: kW-Field software screen grab.

Fresno Church Project Ranks Gold

The Unitarian Universalist Church of Fresno has received LEED (Leadership in Environmental and Energy Design) Gold certification, the first development in the central San Joaquin Valley to gain this prestigious designation.

A plaque honoring the LEED rating will be affixed to the church in a ceremony at 4:30 p.m. Oct. 5. Tours will begin immediately afterward, followed by the program, “The UUCF LEED Gold Project, a Case Study,” at 6:30 p.m.

The church, near Alluvial and Willow avenues, finished construction in 2008, and is the first new construction project between Merced and Bakersfield to be certified LEED Gold by the U.S. Green Building Council.

A project must achieve at least 39 points out of a 69-point rating system to achieve that status. The church project reached 41 points, said George Burman, LEED Project Administrator for the church.

The congregation strongly endorsed the LEED efforts, even though it added 1% to 2% to the cost. In fact, the members were willing to pay as much as 10% more to get the certification.

“It was more a matter of principle than cost, Burman said. “It was not a question of financial payback, but rather of our responsibility to the environment.”

“With each new LEED certified building, we get one step closer to the U.S. Green Building Council’s vision of a sustainable built environment within a generation,” said Rick Fedrizzi, president, chief executive officer and founding chair of the council. “The Unitarian Universalist Church is an important addition to the growing strength of the green-building movement.”

Energy efficiency is the hallmark of the new building; an analysis of the energy consumption indicates that the church uses 53.6% less energy than what is required under California’s Title-24 energy efficiency standard. The church also received points for use of recycled and non-toxic building materials, use of natural daylight, site location, landfill waste diversion and even waterless urinals.

Toss old energy savings lessons out the window

Growing up with a closet Jewish father raised in hiding in World War II Europe meant I learned a lot of life lessons.

Many were absolutely useless:

• Don't turn on the furnace until Thanksgiving. He lived in Seattle, which meant ice-cold floors in the morning and layers of clothing at all times.
• Save everything. The basement of my father's tiny house was crammed with plastic containers, old paint from 50-plus years of unfinished projects, a dismantled motorcycle, an old claw-foot tub filled with garden hoses, tables, our old foam-leaking sofa from the 1960s and pick-up load of empty egg cartons.
• Turn off all lights. My Hungarian grandmother switched off all the lights and spent evenings using only the light of the TV to do her needlework.

There were more (just thinking about them makes me groan), but it's penchant for turning off lights that my family shared with a majority of the American public. A recent report that I first caught sight of on greentechmedia.com says that when asked for the most effective energy-saving strategy, most participants in an online survey mentioned turning off lights and driving less rather than installing more efficient light bulbs and appliances. This conflicts with experts’ recommendations, according to "Public perceptions of energy consumption and savings," a survey of about 500 by Shahzeen Z. Attaria, Michael L. DeKayb, Cliff I. Davidsonc and Wändi Bruine de Bruinc.

They hail from Columbia University, Ohio State University, Carnegie Mellon University and the editor came from Harvard. The study was published online this week in the scientific research journal Proceedings of the National Academy of Sciences.

They didn't paint an overly pretty picture of the general public's understanding of energy efficiency, through which energy savings of more than 30 percent can be achieved through better lighting, improved air conditioning and heating, variable frequecy drive electric motors, cool roofs and insulation.

"For a sample of 15 activities, participants underestimated energy use and savings by a factor of 2.8 on average," the study said. "If households effectively implemented all of (Gerald) Gardner and (Paul) Stern’s (who published "The Short List: The Most Effective Actions U.S. Households Can Take to Curb Climate Change" in Environment Magazine in 2008) recommended changes, U.S. energy consumption would be reduced by approximately 11 percent."

Big stuff. But at the San Joaquin Valley Clean Energy Organization, we know that. Using compact fluorescent lighting, dumping the old appliances for Energy Star units and upgrading the AC -- it all saves cash. And the upgrades pay for themselves relatively quickly.

"Those in the study also overrated the savings of many activities, including driving slowly on the highway, recycling glass containers or unplugging chargers when not in use," wrote Katherine Tweed of greentechmedia.com. "Even people who described themselves as having a high degree of pro-environmental behavior did not always report engaging in a large number energy-efficient habits and actions."

No surprise there. I like to think I'm pro-environment but I enjoy the comforts of fossil fuels, a warm house in winter and AC. Even so, all of us could do with a little painless energy efficiency retrofits. It'll get that foreign oil monkey on our backs to ease up a little.

Postal Service As Model Of Green

Anyone who thinks energy efficiency isn't worth the cost should study the example of the U.S. Postal Service.

The federal agency figured it would cut energy bills at a New York City processing center by $30,000 per year. Instead, the new green roof and other energy-saving measures whacked off a whopping $1 million.

Installing the green roof, changing 1,600 windows and other upgrades slashed energy consumption 40% per month. The crown jewel of the project, the green roof, covers nearly 2.5 acres. Nearly 90% of the original roof was recycled and used during the remodeling. The new roof is project to last 50 years, twice as long as the original covering.

The New York City building is pursuing LEED certification, following post offices in Denver, CO. and Southampton, N.Y., and processing centers in Greenville, S.C., and Troy, MI.

As a result, the Postal Service is more than two thirds of the way to achieving its goal of 30% energy reduction by 2015.

(Photo by Sigal Ben-Shmuel/EKLA)

Home star to provide cash for retrofits

This is a guest post from Houston Neal, director of marketing for Software Advice, an Austin, Texas-based software consultant.

The Home Star Energy Retrofit Act of 2010 -- informally known as "cash for caulkers" -- is nearly here. The bill was passed earlier this summer by the House of Representatives and now awaits approval from the Senate. Supporters predict it will pass before the end of the summer.

In the meantime, homeowners and contractors should be doing their homework. The legislation describes 13 types of renovations that will be eligible for funding. Each renovation has unique eligibility requirements and predetermined rebate amounts. To take advantage of coming funds, homeowners need ensure their retrofits comply with the bill's specifications.

Software Advice, an online technology resource for contractors, recently put together a "definitive guide to cash for caulkers." The company lists all the detailed requirements in an easy-to-read table. It also has combined the retrofits into three packages to help homeowners make the most of the rebates:

• Seal Your House Envelope and Improve Insulation -- Homeowners need to weatherize and seal their house “envelope” before carrying out any serious retrofit.
• Repair and Replace Leaky Ducts -- Ducts are notoriously leaky and inefficient. They are one of the usual suspects in a crime of high utility bills or when rooms are difficult to heat and cool.
• Upgrade Your Furnace and Water Heater -- Improving the heating efficiency of your home will have the biggest impact on lowering your energy costs. Sealing air leaks is a good start, but replacing your heating system could provide real leverage toward cost savings.

To learn more, click here.

About the author: Houston Neal joined Software Advice in 2007, just shortly after the company was started. He spends most of his day writing for the company blog and getting the word out about Software Advice's resources. He enjoys researching and reporting trends in software and technology, and has a particular interest in developments in "green" technology.