Building Decarb Practice Guide - Vol - 3 - MultiunitRes Hotels
Building Decarb Practice Guide - Vol - 3 - MultiunitRes Hotels
Building Decarb Practice Guide - Vol - 3 - MultiunitRes Hotels
PRACTICE GUIDE
A Zero Carbon Future for the Built Environment
THE BUILDING Electric
Heat Pumps -
Domestic
Heat Pumps -
Space Heating
DECARBONIZATION
Appliances and Cooling
Hot Water
Onsite
All-Electric
VOLUME 3: Kitchen
ACKNOWLEDGEMENTS
The William J. Worthen Foundation would like Clean Grid
to thank the entire Working Group of experts
behind the development of the Building
Decarbonization Practice Guide.
RELEASE DATE
October 28, 2021
DISCLAIMER: This practice guide is for educational purposes only. The strategies discussed are addressed in general terms, and should only be applied to a project with the assistance of
properly trained professionals who can advise on their applicability to a project, and the results that can be expected from their application. Use of the contents of this guide is done at the sole
risk of the user, and the William J. Worthen Foundation, the Building Decarbonization Practice Guide Working Group members, and our project sponsors are not responsible for any consequences
or benefits arising from the use of, reference to, or reliance on the practice guide’s contents.
3.1 Principles 6
VOLUME 3
—
Multifamily Residential, Hotels/Motels,
and Similar Buildings
3.0_Multifamily Residential, Hotels/Motels, residential EUI varies from the national average by plus or minus 20%
for most types of residences and most climates, except for apartment
and Similar Buildings buildings with 2 to 4 units, where the deviation is more significant.
Also, hotel/motel occupancies have a significantly higher EUI, most likely
Residential communities form a cornerstone of a climate-adaptive, resilient due to the prevalence of commercial kitchens and laundry facilities.
future, and carbon reduction technologies and associated measures that
improve health, equity, and resilience for people at home promise multiple
benefits to society. Multi-family residential buildings, in particular, as well as
hotel/motel and other housing types, present significant opportunities for FIGURE 3.1: AVERAGE RESIDENTIAL ENERGY USE INTENSITY
decarbonization. Although not the most energy or carbon-intensive building
type overall, the 24 hour/365 day operation of these buildings, coupled with
high demand for new housing have great implications for decarbonization. 100
In addition, decarbonization can have significant benefits for occupant
health and comfort, which can help address growing concerns about indoor 80
air quality in residential occupancies. This Volume lays out both the unique
kBTU/SF/YR
challenges and the technical considerations to create comfortable and 60
healthy living spaces while moving along the path of decarbonization.
40
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en bui e-fa det ine
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student housing, hotels, senior living, low-income housing, etc.
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This Volume addresses primarily low- and mid-rise multifamily housing
Ve
Al
le
although many principles are transferable to other commercial building
ar s in ng
ng
re
l
DG E-r
u
Si
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types with residential occupancies, such as dormitories and hotels.
si
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t
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All-electric design for these buildings is characterized by the operational
tm
AS AE A
tm
ar
HR
Ap
duration (24/7/365) as well as end uses such as domestic hot water,
AS
laundry and cooking, especially when these functions are centralized and
Source of Data: Energy Information Administration, Residential Energy Consumption Survey (RECS)
commercial-scale. These buildings are also unified by the outsized impact
2015, and Commercial Building Energy Consumption Survey (CBECS) 2012.
that resident behavior and lifestyle have on the overall energy use of the
building, complicating the use of existing energy use intensity (EUI)
benchmarks to set energy performance targets. Within residential building
types, data from the Energy Information Administration suggests that
While this guide doesn’t specifically address single family residential Hot-humid
occupancies, many of the strategies defined herein would also be
appropriately deployed in a single-family context as well. Mixed dry/Hot dry
Marine
While the proportion of homes built all-electric has almost doubled over
the past 20 years, it still represented only 25% of the homes built in 2015
(see Figure 3.3). Accelerating the adoption of all-electric new construction
and the retrofit of existing single family and multi-family housing could
significantly reduce building sector GHG emissions.
53 https://www.eia.gov/consumption/residential/data/2015/index.php?view=consumption#by%20fuel
1993
2005
2015
1993
2005
2015
1993
2005
2015
1993
2005
2015
Climate responsive and adaptive housing must address both where and
United States Northeast Midwest West South how homes are built.
54 S. Wiener and D. Kammen, “Why Housing Policy is Climate Policy.” New York Times, March 25, 2019
Decarbonization and affordability can both be achieved if the costs of ozone can stymie photosynthesis in shade trees and other plants, inducing
transitioning our utility infrastructure are borne across the entire building a feedback loop of negative health and environmental effects. Refer to
sector — not just by those left to rely on site-burned fossil fuels. Since the Volume 2, Section 2.2.1, “Societal Benefits”, for more discussion on the
negative impacts of climate change already disproportionately accrue to public health benefits of decarbonization.
disadvantaged communities, it is imperative that decarbonization in this
sector places community health and resilience at the center of decision- 3.1.1.2_Risks to Affordability
making, rather than leading the conversation with greenhouse gas
reduction targets. The health benefits of decarbonization are often There are many reasons why multifamily construction might lag behind
maximized in disadvantaged communities, and the corresponding reduction other sectors in realizing cost-competitive electrification, despite the
in public health costs would be a societal benefit shared by all. In addition, technology solutions being relatively affordable, low-hanging fruit. Building
this new design paradigm must be delivered in a manner that maximizes design and construction industry professionals — contractors, designers
affordability. In this way, the multiple benefits of low-carbon, net-zero and developers and the systems upon which we rely to finance multifamily
housing — improved indoor air quality and lower utility bills — may be construction — all leverage familiarity (e.g. repetition and simplicity) to
equitably shared. reduce cost and risk and minimize liability. Unfamiliar solutions can be
subject to “risk pricing” by contractors or subcontractors who may have an
3.1.1.1_Public Health Benefits implicit bias for seeing their “reliable” and familiar solutions preferred over
more innovative ones.
Harmful byproducts of onsite natural gas combustion can include carbon
monoxide, nitrogen oxides, fine and ultrafine particulate matter, and Life cycle costing (LCC) is discussed in Volume 2, and approaches to cost
formaldehyde. Each of these substances, alone and in combination, have estimating are discussed later in this Volume. With respect to affordability,
been shown to have acute and chronic impacts on human health, including risk pricing can contribute to a lack of consistent, high-quality, life-cycle cost
asthma and cancer. estimating. This can lead to uncertainty, confusion and skepticism for
developers and builders.
As discussed in Volumes 2 and 5, indoor air quality has been shown to
be compromised in residential occupancies. For example, the indoor air Other risks to affordability can occur in urban sites, which often encounter
pollution caused simply by cooking on a gas stove has a far greater impact constraints that pose challenges with electrical service planning. For
than most would imagine. Strategies to address this particular issue are example, there is a popular myth that switchgear must be upsized to
explored in detail in Volume 5. accommodate the load of an all-electric building; this is inaccurate. Further,
it is critical to note that, where electricity is more expensive than natural
However, indoor fossil fuel combustion can also impact outdoor air quality. gas, electrification that does not increase utility bills can come with an
The same byproducts, once vented outside of buildings, further degrade air additional investment in onsite renewable energy generation. This can
quality, impacting building residents and non-residents alike. Furthermore, provide a stabilizing impact on operating expenses for years to come. For
once outside, nitrogen oxides can react with sunlight to form ground-level more on the discussion of onsite generation, see Volume 2, Section 2.6.6,
ozone. In addition to impairing lung function at even very low concentrations, “Maximizing On-Site Renewable Energy Generation.”
Check state and local codes for Check state and local codes for
electrification and renewables electrification and renewables
Evaluate future
RPS of local grid
Build a shoe box energy model Evaluate future Conduct energy audit to find EE,
to study feasibility RPS of local grid RCx, PV/BESS, and electrification
opportunities
c. Assemble a consultant team (Architect, Structural Engineer, MEP 3.2.2_SETTING UP A STRONG PROCESS AND TEAM
engineers, Energy Analyst, etc.) with experience designing all-electric
and/or low-embodied carbon multifamily buildings. Make sure that 3.2.2.1_Create the Conditions for Intentional Goal-Setting
the Energy Analyst is familiar with the challenges of demonstrating
Code compliance for all-electric buildings (see further discussion in Housing has the opportunity to be transformative: these buildings have the
Volume 7). potential to activate street life, benefit open space and ecology, shape the
daily routine, safety, security, and health of residents, and facilitate ease of
d. Develop an operational energy and embodied carbon Owner’s access to the neighborhood and the community. And yet projects are
Project Requirement (OPR), either as a standalone document or as typically highly first-cost driven, and development goals tend to be narrow
an amendment to the owner’s generic design standards, that covers (i.e., unit yield, budget, schedule). So expanding the team’s understanding
program-specific performance criteria not already addressed in the of what a successful housing project looks like can be a critical early step in
standards. Note that an existing design standard may be a more familiar considering decarbonization strategies, even ones that are low- or no-cost.
and powerful basis for establishing requirements compared to a new
OPR, depending on the client’s experience (see Volume 2, Section 2.4, It’s easy for early milestones to fly by without taking a moment to pause
“Owner’s Project Requirements: The Value of Goal Setting”). and put a stake in the ground. Touring existing housing projects as a team
can be a useful tool for building a foundation of shared experience and
e. Develop a Cost-Benefit Analysis Framework as discussed in Section values. Here are some other key strategies:
3.5 herein, “Assessing Costs and Value.”
1. Emphasize co-benefits
2. Early Design:
The market incentives to put emissions reduction high on the list of
a. Identify a gross EUI target for your building (ASHRAE has resources development priorities are still emerging. Electrification, grid-optimization
for identifying a target EUI for a variety of Zero Net Energy residential and embodied carbon reduction strategies are more likely to gain traction
project types). on a project if they are attached to project certifications or funding, or
framed in a way that leads with co-benefits such as resident health,
b. Maximize passive design strategies when evaluating site massing.
property marketability and resident retention, resiliency benefits, or energy
c. Conduct a whole-building energy model and life-cycle cost analysis independence priorities.
to evaluate measures required to meet compliance targets, the EUI
2. Head off uncertainty early
target, and an optimal renewable energy investment target.
There are specific points in the development process where there can be
d. Balance priorities of healthy indoor air quality, resilience, and simplicity
conflict between what a developer, designer, or contractor is accustomed
alongside efficiency when selecting system options to evaluate.
to doing and what delivery of an all-electric building design would entail:
e. Hire a commissioning agent (see Volume 2, Section 2.3.3, “Role of
Commissioning Agents” for more information).
a. Budgeting (see also Section 3.5 herein): 3. Be proactive with design standards
i. Funding criteria and deadlines Many multifamily property developers have a set of design standards that
often supplement or replace an Owner's Project Requirements document
ii. Uncertain magnitude and value of new soft costs and drive a lot of the specified systems and equipment. For large,
market-rate developers, these standards can be relatively non-negotiable.
iii. Uncertain up-front and life-cycle cost tradeoffs
Because such standards tend to be generic, project-specific goals and
iv. Cost of onsite renewable energy generation performance criteria can go undocumented. Designers can use project-
specific documents as a helpful accountability tool, rather than an obstacle
b. Programming or administrative nuisance, if they are proactive about them. Design Team
leaders should:
i. Ground level service space planning
a. Encourage the addition of a programming document section to
c. Design:
capture project-specific performance criteria, goals, and owner
i. Avoidance of the Guinea Pig syndrome (aka the natural tendency requirements.
to avoid any solutions that seem too leading edge)
b. Take the lead with scheduling coordination meetings that use the
ii. Utility connections, estimating transformer size/type and design standards and the project-specific criteria document to track
switchgear space progress and serve as a basis for project evaluation and discussion.
iii. Domestic hot water system configuration and equipment location 3.2.2.2_Hire the Right Team
iv. HVAC systems options, envelope options, and energy modeling Volume 2, Section 2.3, “Assembling the Right Team” discusses the value of
hiring architects and engineers experienced with the new strategies
v. Electric Vehicle Charging Station (EVCS) options required to deliver energy efficient, all-electric, low embodied carbon
buildings. Specific things to consider when writing RFPs for multi-family
vi. PV system size
housing projects include:
d. Permitting
1. Requiring a team experienced with designing central heat pump water
i. Energy Code compliance heaters and Energy Code compliance modeling for all-electric
multifamily buildings.
These points, among others, can turn into extended conversations requiring
coordination and/or analyses, which otherwise might not be required. 2. Adding oversight scope from a consultant who specializes in central
These conversations add time, and you can bump up against cognitive bias, heat pump water heating systems. This scope might include: advising on
introducing more doubt and uncertainty for the owner. the basis of design, evaluating/recommending concepts and sizing, peer
review, system monitoring, and operator training.
3. Including in the energy consultant’s scope a benchmarking energy thinking design guidance. For example, the WRI Working Paper,
model — distinct from the required Energy Code compliance model — “Accelerating Building Decarbonization: Eight Attainable Policy Pathways to
that can help an owner evaluate energy performance and savings Net Zero Carbon Buildings for All,” published in September 2019, highlights
measures compared to an industry baseline, provide greater accuracy in thirteen widely available energy efficiency (EE) technologies and eight
hot water-related energy savings measures, allocate PV energy savings widely available renewable energy (RE) technologies (see Figure 3.5).
properly, and provide life-cycle cost analyses. Additional modeling scope All these technologies are well-established and commercially available at
is discussed in greater detail in Section 2.5, “Using Building reasonable cost, and they represent solutions that can be delivered by any
Performance Modeling as a Design Guidance Tool”. number of qualified design and construction firms.
4. In addition to basic testing and inspection scopes, include a request for 3.2.3.1_Architecture
team members that can provide some or all of the following:
Volume 2 addresses many of the universal architectural design
a. Services typically provided to meet the national or regional Energy considerations that are essential for the design of successful all-electric
Star for Homes program requirements and the Multifamily High Rise buildings, such as load reduction fundamentals: orientation, window sizing,
Program Testing and Verification Protocols, including the Thermal envelope construction, and exterior shading devices.
Enclosure System Field Checklist and fan pressure testing for
compartmentalization.55 Although an all-electric design does not necessarily have a dramatic
impact on space planning, it’s worth highlighting that for this building type,
b. Full systems commissioning, including envelope. basic building blocks for upper-floor residential and ground floor service
areas are typically based on established rules of thumb that have evolved
If these items get excluded, they are hard to include later in project
to maximize space efficiency over time. When transitioning away from
development. If the scope is included from the start, it will be there to
historically mixed-fuel projects, some of these assumptions could be
ensure a meaningful return on energy efficiency investments.
challenged, and should be confronted early.
FIGURE 3.5: WIDELY AVAILABLE ENERGY EFFICIENCY (EE) AND RENEWABLE ENERGY (RE) TECHNOLOGIES THAT SUPPORT ZERO CARBON
EE
Wall and Ceiling Double/triple Window size Natural Evaporative Radiative Natural
Insulation window pane and position light cooling cooling ventilation
Efficient HVAC Window Efficient water Efficient lighting Efficient power Efficient
system shading heating system system system appliances
OTHERS: Building form and layout to reduce cooling load, passive cooling through wall, window and roof massing/materials.
RE
Solar photovoltaic Solar water Electric Geothermal Solar power Wind turbines Hydro Geothermal
panel heating storage cooling plants
OTHERS: Parabolic solar collectors, solar cooling, clean biomass for cookstoves, “thermal batteries.”
Source: https://files.wri.org/s3fs-public/accelerating-building-decarbonization.pdf
having high-level discussions about performance intentions and operations construction (stick framed with plywood shear walls). For high-rise
early on, or else build in some buffer — such as a slightly longer unit depth buildings, fire/life safety systems and non-combustible construction
or comfortable service space allocation — so that the design remains become requirements, both of which significantly increase a building’s
flexible within a given unit yield and mix. embodied carbon footprint on a per unit basis.
3.2.3.2_Structural Design Mass timber and some hybrid structures are increasingly possible and
code-compliant for high-rise construction. However, high-rise life/safety
Volume 6 of this Guide is devoted to reducing the embodied carbon in system requirements (e.g. additional structural encapsulation requirements
buildings. It identifies the significant steps towards employing reduction for fire resistance, and redundant fire sprinkler systems) can cause
opportunities: increases in system sizing and hence embodied carbon, even with mass
timber options.
1. Quantifying the embodied carbon in your project
High-rise construction often requires a more concentrated use of materials
2. Familiarizing your team with high-impact materials and systems within the structure and the exterior enclosure. Together, these result in
3. Sourcing from lower-impact manufacturers a higher embodied carbon footprint per area of building. But the type of
systems used can lead to more durable, longer lasting buildings, as well as
4. Optimizing the use of materials facilitating higher density programs for a smaller impacted land area.
5. Reusing materials Modular building options, both below and above the 75’ height limit, offer
unique opportunities for minimizing waste within the construction process.
6. Using less Portland cement One challenge of volumetric modular construction is that the added
structural materials that go into the modules for shipping and prior to final
7. Using more biobased and other carbon-sequestering materials
construction often increase their embodied carbon footprints over build-in-
Multi-family construction generally accommodates a wide range of place alternatives.56 One optimal modular approach, for both embodied
embodied carbon footprint options, which are tied closely to the area of carbon and cost, has been to flat-pack frame systems, where floor and
land impacted by the planned building, the size and height of the building, wall panels are built using modular systems and final assembly either
and the life-safety systems that go into the building. happens as the building goes up, or within an enclosed factory setting at
the project site.
Many framing options are possible for non-high-rise buildings (typically
buildings with less than 75 feet elevation change from the entry to the How to achieve the lowest embodied carbon footprint is not an easy
highest occupied floor — the height of a fire ladder truck that usually question to answer and the variables are many. Trade-offs need to be
defines the trigger point for high-rise construction requirements). For low considered carefully within a whole project life-cycle analysis in order to
and mid-rise construction, buildings with the lowest carbon footprint are assess which is the lower carbon solution for a given site and targeted
often built with sustainably sourced lumber, in Type V combustible frame building lifespan.
56 Volumetric modular construction is the process of assembling fully enclosed, six-sided building modules in an offsite factory setting and then joining them together to construct one large building.
It is common for multi-family housing projects to be delivered through a. As stated previously, when contractors — and even most specialty
a design-assist57 or design-build delivery method.58 These methods often subcontractors — are presented with unfamiliar design solutions,
put the builder in the role of cost estimator since conventional wisdom “risk pricing” can result. Contractors can have implicit biases for
has it that they are experienced at establishing quantities and productivity, seeing their “reliable” solutions as preferred over more innovative ones.
so they should be well-positioned to establish the anticipated cost of
any project. b. One strategy to mitigate risk pricing is to specify the most simple
and elegant solution. In addition, offering strong support to
Conventional wisdom has two potential pitfalls when it comes to relying contracting teams to ensure that they understand the systems —
on the builder to estimate construction costs for any project: for example, installation mock-ups or training, prior to bidding —
can reduce the fear of installing a “new” system for which they lack
1. “Filling in the gaps”: familiarity. It can also help to draw analogies to systems with which
contractors and subcontractors are already familiar. For example, the
a. The process of developing opinions of probable construction cost
install on today’s packaged terminal heat pump (PTHP) units isn’t
is not the same activity as preparing a construction bid. Bidding
appreciably different from yesterday’s hotel-style heating and cooling
typically involves measuring quantities shown on a set of drawings
unit (PTAC).
and applying material costs, productivity rates, and other factors as
part of determining the total cost to build something. The art of For general approaches to cost estimating that may improve the success of
estimating the cost of work when designs are not ready to be project cost control, see Volume 2, Section 2.3.2, “Cost Estimating”. For a
“measured” is critical to proper preparation of cost opinions during more focused discussion on cost control and value assessment related to
early design phases. Professionals who do nothing but estimate the Multifamily Housing projects, see Section 3.5 herein.
cost of construction are often better suited to filling in the gaps, often
based on extensive databases of similar work; the project design 3.2.3.4_Electrical Design
team — particularly the architect, engineers, and energy consulting
professionals — should also be able to assist based on their most For all-electric building designs, the electrical engineer takes on a critical
recent prior experiences. role. Proper sizing of the electrical service is a key factor in these projects.
While sizing of a building’s electrical service is highly constrained by the
b. Moreover, development teams need to be supported to review life national Electrical Code, engineering judgement is relied on in a number of
cycle cost and potential reductions in operational energy costs and ways that — if not exercised properly — can dramatically oversize electrical
related improvements in net operating income in order to fully infrastructure. It is advisable to ensure that service sizing calculations are
evaluate the cost-benefit of a particular energy or embodied carbon given robust peer review.
decision. This process is more fully detailed in Section 3.5, and case
study examples are provided in Section 3.6.
57 Design-Assist: The Way to Really Fly [AIA course] or Design-Assist: Getting Contractors Involved Early
58 What is Design Build? — Design-Build Institute of America Rocky Mountain Region
For example, National Electrical Code rules provide ways to discount projects might have difficulty siting a transformer (e.g. small, urban
various loads, including appliances, cooking equipment and laundry loads. infill projects), work closely with the HVAC engineer to avoid the
In addition, experience shows that calculated demand loads always use of equipment requiring 460VAC. If all equipment can use
overestimate actual demand loads, and for good reason. 208V/1PH or 3PH power, a transformer can be avoided. For larger
projects where transformers present cost and/or space issues,
However, once a building is built and occupied, actual demand loads can be consider multiple utility services. Avoiding transformers also avoids
easily measured, and additional loads can be added without an increase in the losses (+/-2% of the transformer’s kW rating) that reduce
service or switchboard capacity. Thus, owners should be strategic about the overall electrical system energy efficiency.
possible phasing of work in order to take advantage of the inherent
oversizing of electrical infrastructure even when good engineering 3.2.3.5_HVAC Design
judgement is exercised.
There are a number of cost effective all-electric HVAC approaches that
Areas where electrical engineers should pay close attention include: provide good energy efficiency. ASHRAE is currently developing their
Advanced Energy Design Guide for Zero Energy Multifamily Buildings,
» Evaluating the anticipated connected load of heat pumps.
which will provide detailed guidance on optimal HVAC strategies.
- Even in mild climates, defrost heaters need to be considered, In general, strategies include:
and heat pumps may need supplemental electric heat in order to
1. Heat pumps:
handle low ambient conditions.
a. Volume 2, Section 2.6.2, “Use Electric Driven Heat Pumps,”
» Exercising reasonable engineering judgement when it comes to
discusses heat pumps in detail.
diversity, demand and derating factors.
b. Newer products are being developed for the residential market that
- Be careful in cases where Local Code provisions override the use
incorporate many cost and energy efficiency measures, such as
of diversity factors, such as with the requirements for EVCSs in the
self-contained air-to-air heat pumps (i.e., no outdoor unit is required),
California Green Building Standards Code (2019 CALGreen par.
and domestic hot water heat recovery options (see Figure 3.6).
4.106.4.2.4).
c. For certain projects, only specify — if possible — equipment that
» Careful consideration of the service voltage.
runs on 208 or 220 VAC. This can help the electrical engineer avoid
- These types of projects consist mostly of utilization voltages of the need for large service transformers, which can be costly as well
208 volts, so selection of the service voltage for smaller projects as difficult to locate on some projects. This should be discussed with
should be at 208 volts, in lieu of 480 volts, which reduces the need the electrical engineer and closely coordinated during the completion
for interior step-down transformers to serve the load. Where of the design.
b. Be aware that many PTACs that have a heat pump option can only
Supply Air use the heat pump down to a relatively warm outdoor air temperature.
223 CFM Recirculated Below this temperature, they switch to electric resistance heating,
+ 47 CFM Fresh Air Supply Return Air which can increase electrical infrastructure costs and be very
112 CFM expensive to operate.
Stale Air 3. Dedicated outdoor air ventilation systems (DOAS):
Extraction
47 CFM a. Also discussed in Volume 2, Sections 2.6.2 (“Use Electric Driven
Heat Pumps”) and 2.6.3 (“Eliminate Reheat”), these systems can
be paired with any number of heating and cooling strategies.
6. Electric resistance heating: as an electrical or telecom room). Apartment laundry services can be
co-located with the heat pump water heater to vent the cold air through the
a. While this may be the least desirable type of system, there are some dryer exhaust vent as well as saving on materials and ductwork. There are
applications where it can be a reasonable choice: for example, when also split heat pump units available on the market that place the condenser
envelopes are built to Passive House standards, the vastly reduced remotely (often outdoors) with a separate hot water tank that can be
size needed for space heating systems can make this technology an located wherever needed. This simplifies internal space layout and venting
extremely cost effective choice. accommodations, but it does require outdoor space (roof or ground),
a suitable exterior wall area for mounting the condenser, or a suitable,
Whatever systems are ultimately considered, final system selection needs
properly ventilated indoor space (e.g. a large parking garage).
to consider any number of project goals, including the ability of the property
management staff to operate and maintain the systems. Unitary equipment can also be configured for multiple dwelling units,
linking multiple dwelling units to a singular heat pump water heater. While it
3.2.3.6_Domestic Hot Water System Design may be harder to configure this type of system without a recirculation loop,
One of the systems undergoing the most radical transformation in design designs have been completed that maintain compact domestic hot water
approach is the domestic hot water (DHW) delivery system. The onsite piping without a recirculation loop. In this application, the system would
combustion of a fossil fuel to generate DHW has been the primary design typically require a larger storage tank volume to carry the larger loads of
paradigm for over 100 years; the first US patent for a storage type water multiple units. Nevertheless, this design can save on space, cost per unit,
heater was filed by Edwin Ruud in the 1880s.59 and maintenance.
DHW (aka service hot water) heating is also a large energy end use in In larger buildings, especially in retrofits of existing buildings, central heat
multifamily building types. These systems can be unitary (one or more pump water heating (HPWH) systems may be the only viable approach, and
per dwelling unit), unitary for multiple dwelling units, or — as is most this can be designed with highly efficient air-to-water heat pumps paired
commonly designed for large multifamily projects — a central water heater with storage tanks. Hot water storage tanks can be strategically placed in
system with hot water storage and recirculation loops. basements, parking garages, or dedicated mechanical spaces. ASHPs are
typically located outdoors (roof or grade mounted) but can also be placed in
3.2.3.6.1_AIR-SOURCE HEAT PUMPS open parking garages. Ideally heat generation and storage can be co-
located, as in traditional boiler rooms. However, conventional boiler rooms
Efficient unitary systems are generally configured around air-to-water heat
are typically too small to house even the additional amount of water storage
pumps (aka air-source heat pump or ASHP), and — if located close enough
typically required for these heat pump systems, so space allocation is often
to all end uses — they can be installed in each unit to facilitate elimination
an issue. A typical project layout that contrasts gas boiler and central heat
of the recirculation loop and its associated energy losses. This requires a
pump water heating systems is shown in Figure 3.8, for a side-by-side
dedicated space for the equipment in the apartment or hotel room (see
comparison of the space needed for tanks and other equipment. Due to the
Figure 3.7), and the space must be adequately ventilated to prevent the
relatively limited capacity of the largest ASHPs (when compared to
space from becoming too cold as a result of the heat pump’s operation.
conventional gas-fired water heaters), central HPWH systems should be
Some manufacturers allow the cold air emitted from a heat pump to be
designed to maximize storage and minimize heater capacity to ensure that
ducted, either to the outdoors or to a space that needs 24/7 cooling (such
adequate supplies of hot water are always provided. Early architectural
59 https://www.ruud.com/about/
FIGURE 3.8: CHANGES TO A FLOOR PLAN DUE TO CONVERSION FROM GAS TO ELECTRIC WATER HEATING SYSTEMS
Gas Water Heating System Electric Heat Pump Water Heating System
Storage Tanks
For ground-source systems, pulling heat out of the ground to create DHW
should typically be combined with systems that put heat into the ground
(e.g., chiller systems), to avoid annual thermal imbalances that can have
significant adverse effects. Numerous resources on the proper design of
ground-source heat pump systems are available.60
3.2.3.6.3_SIZING CONSIDERATIONS
The first consideration for designing and selecting a central HPWH system
is to determine the peak demand and the usage profile over a twenty-four
hour period.
60 For example, see Geothermal Heating and Cooling: Design of Ground-Source Heat Pump Systems, Steve Kavanaugh and Kevin Rafferty, published by ASHRAE, 2014.
While the buildings that are the focus of this Volume have similar demand
characteristics (with some variation), the typical methods that are used for
FIGURE 3.9: MODIFIED HUNTER CURVES
estimating peak demand in residential occupancies are based on outdated
assumptions and data. These methods generally result in a significant
oversizing of heating capacity. Many things have changed since 1940 when
100
Roy B. Hunter’s “Methods of Estimating Loads in Plumbing Systems” was
90 published as a national standard in the United States.61 Hunter’s “curves”
used for system sizing have been modified since the 1940s to develop
80 curves that are tailored for different occupancy categories (see Figure 3.9).
70
Nevertheless, Hunter’s methodology is baked into current National Codes,
and these curves still result in significant oversizing of systems.
Gallons Per Minute
60
Efforts have been made over the past decade to develop alternative
50 methodologies for estimating peak demand that engineers can rely on
40 to design systems that provide an adequate source of DHW at all times.
For residential occupancies, numerous studies suggest that multi-family
30 buildings (apartments and condominiums) share demand characteristics,
with a tight correlation of daily volumetric consumption as well as time and
20
duration of peak demand periods. Some manufacturers and industry-leading
10 consultants have developed methodologies tailored to the residential
market based on the fact that these demand profiles are more predictable
0
0 25 50 75 100 125 150 175 200 225 250 275 300 325 350 375 400 than in many other occupancies. In addition, Appendix M of the Uniform
Plumbing Code is being adopted by an increasing number of authorities;
Fixture Units (Conversion Factor: L/s = gpm x 0.0631) this alternate method has been shown to reduce calculated peak demand
as well as pipe sizes that result from the traditional calculation methods.
– Restaurants
Right sizing of heat-generating equipment is always important, but the
– Hospitals, Nursing homes, Nurse’s Residences, Dormitories, Hotels challenges of designing HPWH systems are magnified by the oversizing
and Motels of systems. Engineers need assurance that the methodologies they use
– Apartment houses will provide reliable results. Thus, this is a critical area for further tool
– Office Buildings, Elementary and High Schools development. The University of Cincinnati’s Department of Environmental
Engineering has been a leader in the research and development of new
Source: 1999 ASHRAE Handbook
methodologies. However, until these new methods are objectively
validated, engineers may prefer to compare manufacturers’ recommended
system capacities, capacities derived from tools developed by industry-
leading organizations, and capacities developed using standard industry
61 Image from https://www.aspe.org/product/the-original-hunter-papers-the-foundation-of-plumbing-engineering/
3.2.3.6.4_CONFIGURATION CONSIDERATIONS
Different configurations of central HPWH systems are available. The primary Viable Retrofit
configurations in use today are: Path Option
MF Typology Thermal decarbonization strategy
» Central Systems
- Single-pass
- Multi-pass
Commercial-scale HPWH in a central
» Distributed Systems DHW plant
- Residential-type HPWH with integral storage Central
DHW plant
Design considerations for central HPWH systems are discussed in more Multiple residential-scale HPWHs in a
detail in Volume 2, Section 2.6.2.4, “Single-Pass Versus Multi-Pass central DHW plant
Domestic Hot Water (DHW) System Configurations”.
3.2.3.6.6_UNIQUE CONSIDERATIONS FOR MULTIFAMILY RETROFITS And, unlike fireplaces that burn fossil fuels or wood, they do not emitt CO2
The NRDC funded the development of a very robust retrofit guide for heat and can be controlled for optimal comfort and aesthetics.
pump water heating in various climate zones.63 The report has a very useful What is a water vapor fireplace?
decision tree for the various approaches (see Figure 3.10). The report also
lays out potential design issues for retrofits, specifically noting the unique Ultra-fine water vapor, LED lights, and different air pressures allow “cold
challenges for cold climate retrofits from existing space heating system flames” to replace actual fire to reduce emissions in a building. LED lights
systems to heat pump water heating systems. illuminate the mist into a life-like flame effect. The depth of the flame can
be customized as well by adjusting the opening where the water vapor
3.2.3.7_Laundries comes out.
Appliance energy use can rise to become a dominant load in an otherwise Why buy an LED fireplace?
efficient apartment design. Many multifamily developers targeting Zero Net
Energy move in-unit laundries to a central facility to cut laundry equipment LED fireplaces are a modern combination of an electric heater and refracted
connected loads in half. Historically, equipment in central laundry facilities light. Depending on the model, the LED fireplace might have electric coils
have been leased from third party vendors. However, the ease of or use infrared technology to produce heat. An electric coil unit sends
installation and low capital expense for systems such as ShinePay make it electricity through coils which heat up; fans then push the heat into the
highly feasible to purchase and install energy efficient laundry equipment room. Infrared heaters use infrared lights to heat up a heat exchanger, such
that may not be available for lease while still facilitating a reimbursement- as copper coils, where fans distribute the heat. These fireplaces feel like
based system for which residents merely need a phone (no coins required!). a real fireplace, and they are the safest and cleanest electric fireplace
technologies to put within a home or office.
This approach opens up options for the use of condensing washer/dryers
and heat pump dryers, which can cut energy use by 40%-60%. Another 3.2.3.9_Grills
option that could be considered is upgrading from single function machines,
which require tenants to move laundry from washer to dryer mid-process, Built-in electric grills or portable electric grills are great for outdoor cooking.
to combined all-in-one washer/dryer machines that have built-in condensing Infrared electric grills heat up much more quickly than charcoal or gas grills,
drying capability. Central laundry room circuits can often be freed up by this and infrared technology evenly disperses the heat over the entire grill area.
upgrade, saving first cost or enabling opportunities for other increases in Infrared cooking generates much higher temperatures than normal grills.
electrical loads. These grills can generate surface cooking temperatures of up to 700
degrees in under 10 minutes.
3.2.3.8 _Fireplaces and Fire Pits
With no charcoal fumes and no propane gas combustion, infrared electric
Electric fireplaces are less expensive than gas stoves, as well as safer and grills can be cheaper to operate and easier to clean, need little maintenance,
cleaner, and they plug into a normal 120V wall outlet. They provide heat in and are often smaller and easier to put away. There is no open flame or
a more efficient and smokeless way: a 3,000-Watt electric fireplace can torrent of smoke, so they can also be used in high rise buildings, apartment
warm spaces up to 800 square feet. Outdoor electric space heaters are complexes, or condos, where typical combustion grills may not be allowed
similarly versatile and ready to replace headache-inducing propane burners. due to fire code or insurance restrictions.
Single-family
Multi-family
Hospitality
extremely important to address how our homes use electricity. We have
Assigned
Vacation
Housing
Student
Rentals
Rentals
Houses
become too comfortable with all of our appliances using milliamps of power
Living
Energy Efficiency
all the time. For example, how many display clocks do we really need in our Strategy
kitchens? The microwave, the coffee maker, the toaster oven, the
refrigerator all want to tell the time, and they never quite agree! Occupancy Control
● ● ● ● ● ●
30% off lighting
The challenge of eliminating these “vampire” loads has been easily solved in
Daylighting
the commercial construction world through plug load management devices 10% off lighting
● ● ● ● ● ●
and occupancy sensors, which are required by Code in many places.64
Dimming
● ● ● ● ● ●
Applying plug load and lighting management technologies in residential 10% off lighting
construction has generally proven to be cost prohibitive. In addition, many
HVAC Integration
of us have come to loathe the occupancy sensor that never seems to know 15% off heating/cooling
● ● ● ● ● ●
we are there. However, newer technologies and tailored solutions are being
developed for the residential market that will bring the cost down Water Heater Integration
● ● ● ● ● ●
significantly and improve the efficacy. These devices provide a cost effective 30% off water heating
means to enhance occupancy-based control schemes (see Figure 3.11). Plug Load Integration
● ● ● ● ● ●
They should also provide a means for grid responsive controls to be cost 15% off standby power
effectively incorporated into residential construction, allowing for the use of
Demand Response
unitary HPWHs to be used as deployable loads.65 ● ● ● ● ● ●
40% off during peaks
3.2.3.11_Swimming Pools
● Easily integrated strategy
While already common world-wide and regionally in the U.S. (e.g., Florida, ● Opportunity dependent on system design choices
Hawaii), market demand for heat pump pool heaters is growing throughout
Source: Rivieh
the country. A common consensus is that heat pump pool heaters are
simpler to install than natural gas pool heaters in new single-family and
smaller multi-family residential construction because of the challenges of
running gas lines compared to the simplicity of running a 40-Amp electrical
circuit in residential settings.
64 Plug load management requirements are included in the 2021 International Energy Conservation Code, the California Energy Code since 2013, the Washington State Energy Code since 2015, and ASHRAE 90.1 since 2010.
65 See Heat Pump Water Heaters as Clean-Energy Batteries or the publication “Evaluating Peak Load Shifting Abilities and Regulation Service Potential of a Grid Connected Residential Water Heater”, published by the Electric Power
Research Institute in 2012.
Heat pump pool heaters work well year-round since they can do both pool - A number of manufacturers make heat pumps that use CO2 as the
heating and pool cooling. Large outdoor pools that are kept warm during refrigerant. In addition to the fact that CO2 has the lowest GWP of
the winter can use multiple standard heat pumps that are designed to be any refrigerant on the market other than ammonia, this refrigerant
integrated together to meet the higher heating demand. Generally, these is particularly well-suited to making very hot water in very cold
are plumbed in parallel, with a logic system for automation. climates (see Figure 3.12). New entrants are coming onto the
market every month, driven in some part by the market demand
Heat pump pool heaters save pool owners on their utility bills compared to created by California’s initial requirement in December 2019 that all
gas because they can deliver up to five units of heat for every one unit of HPWH systems for DHW heating systems serving “multiple
electricity used, while gas pool heaters use six times as much energy, dwelling units” be able to (1) operate with a minimum ambient air
delivering only 0.8 to 0.9 units of heat for every one unit that is burned. temperature of -20°F and (2) be capable of providing hot water
greater than 150°F when the ambient air temperature is between
Furthermore, heat pump heating for pools can be paired with additional
5°F and 110°F. These criteria essentially mandated CO2 heat pumps
efficiency measures. Pool covers dramatically reduce heat loss, for
for all-electric multifamily housing projects in California.
example. Floor return lines, which prevent stratification (cold water at the
bottom of the pool and hot water at the top), are common in older pool
designs and are an important efficiency measure.66
FIGURE 3:12: SAMPLE CAPACITY CURVE FOR A CO2 HPWH
3.2.3.12_Cold Climate Considerations
Designers want the ability to reliably produce 180°F water when it is 0°F
outdoors. The good news is that they can! 40
The barriers to producing hot water in cold climates are not technical, and Full heating
Capacity (KW)
there are a number of solutions available to tailor the design to a project’s capacity at +27°F
unique technical constraints. However, many of these solutions can be
more expensive than business as usual. So, until market demand brings
down the cost of these technologies, we will be relying on other market
Operable as low
forces to encourage implementation of these solutions.
20 as -13°F
These solutions include: 15
-22°F -13°F 14°F 27°F 32°F 86°F 122°F
» CO2-based HPWHs:
Outdoor Temp
66 Adapted from Anderson, Dylan and Armstrong, Sean. Pool Heat Pump Design, Bay Area Strategies and Resources. May 2021.
- Also known as “cascading heat pump systems,” this configuration FIGURE 3:13: COMPRESSOR ENVELOPE DIAGRAMS SHOWING A
uses an air-to-water heat pump that can create water at an TWO-STAGE HPWH SYSTEM FOR COLD CLIMATES
intermediate temperature (+/-80 to 100°F) when outdoor air
temperatures are below 0°F as the first stage. Water leaving this
first stage then enters a water-to-water heat pump that lifts the 210
water from the entering temperature to the desired system supply 200
water temperature (anywhere from 120°F to 180°F). See Figure 190 Note: Creating 180° F water
3.13 for a diagram of this two-stage process. 180 from -30° F ambient in a single
170 stage is not possible.
» Find a stable “source” at a temperature between 60 and 80°F to use 160 Secondary Stage
for water-to-water heat pumps: 150 WATER/WATER HP
Stage 2
» Capacity reductions:
3.14: SANITARY WASTEWATER ENERGY EXCHANGE (SWEE) - The sample capacity curve shown in Figure 3.12 reflects a drop off
in capacity starting at an outdoor air temperature of 27°F, and as
much as a 50% loss in capacity at -13°F. Make sure manufacturers
Sewage
(approx. 59°F)
provide ratings at your most extreme expected operating conditions.
Sewer
Compressor
the original design temperature, there are only a few reasons to
86-122°F 42°F
design for hot water temperatures greater than approximately
Condenser Evaporator Distributing pipe 120°F. Lower supply water temperature may also lower the overall
(pure water, cold)
design water temperature difference (aka ”delta T”). While a lower
Source: Rabtherm delta T may increase pumping energy, the overall system efficiency
reductions are more than offset by a heat pump’s improved coefficient
of performance (or COP) at lower supply water temperatures.
There are several cold climate issues that designers need to bear in mind,
- In addition, lowering supply water temperature avoids the first cost
which include:
impacts of having to implement a two-stage system and, possibly,
» Defrost: the decision to abandon electrification altogether.
- Don’t think that a mild climate means that this issue can’t affect 3.2.3.13_Refrigerants
your design; some equipment will frost up at temperatures as high
Refrigerants, other than CO2 and ammonia, are potent greenhouse gases.
as 40°F. Manufacturers of air-source products handle this issue in
With the growing availability of heat pumps using CO2, choosing this
different ways. Be sure to incorporate, when needed:
refrigerant for as many uses as possible can be a good strategy to minimize
› Defrost heat sources the global warming impact of refrigeration systems. For further discussion
about the relative impacts of other refrigerants, see Volume 2, Section
› False cooling loads to allow systems to reject heat in the 2.5.1.3.2 “Carbon Emissions Equivalent”.
outdoor coil
3.2.4_HOTEL/MOTEL OCCUPANCIES One of the last strongholds for natural gas is the hotel/motel kitchen.
Suffice to say that the guest-support spaces, such as central kitchens
Hotel and motel occupancies are not that different from multi-family and other more “commercial” spaces (including retail, ballrooms and
building designs except for a few key features. The central heat pump conference centers), present the greater challenges for electrification of
domestic hot water loops are similar in design, controls, and piping this occupancy type. Volume 5 busts the myths around gas as a superior
configurations, but often with fewer fixtures to service as most hotel and fuel for cooking, and Volume 4 addresses commercial occupancies.
motel rooms are designed without full service kitchens. Offsetting the
reduction in kitchen fixtures is an increase in the density of showers, tubs,
and bathroom fixtures compared to multi-family projects.
3.3_Construction Phase Considerations
For smaller hotel/motel buildings, the electrified HVAC options are similar
to what we would use in multi-family buildings, such as packaged terminal In this practice guide, the primary discussion regarding construction
heat pumps, vertical heat pumps, VRF, and other strategies already practices and construction phase activities may be found in Volume 2,
discussed. For larger high rise hotels in dense urban areas, the system Universal Design Considerations, Section 2.7, Construction Practices, and
choices for high-efficiency designs tend towards central plants servicing Section 2.8 Post-Construction Practices. Nevertheless, a few key concepts
4-pipe fan coils at the guest rooms and larger/central air handlers for bear repeating:
amenity spaces. These central plants can be based on heat recovery
A study quoted in Volume 2, Section 2.7 suggests that substantial
chillers, or central heat pumps (and are good candidates for combining with
reductions in emissions during the procurement and construction process
ground-source loops or sewer wastewater energy exchange).
may be achieved if the following five actions are accomplished:
One type of control strategy that is unique to the hotel/motel category is
1. using materials more efficiently
the “captive key card” system that automatically turns off the HVAC, lights,
and controlled receptacles when the room is vacant. While this is a very 2. using existing buildings better
efficient approach for hotels (and a Code requirement in many states), it is
not currently a requirement for multi-family buildings. Some types of 3. switching to lower-emission materials and low-emission
multi-family housing — such as student dormitories and co-living67 facilities — construction machinery
might be appropriate types of projects to consider using this approach.
New technologies are on the horizon that could make this type of “vacancy 4. using low-carbon cement, and
control” more suitable and cost effective in multi-family residential projects
5. recycling building materials and components.
(e.g. see new technology from Rivieh68 that is expected to become
commercially available in the first quarter of 2022).
67 The defining characteristic is that all co-living spaces offer at least a shared kitchen and living room.
68 https://rivieh.com/
It’s critical to ensure that these goals are included in the OPR that will be
subsequently memorialized in project specifications and contract
3.4_Operational Phase Considerations
documents. In addition, when contracting with design and commissioning A comprehensive approach to energy management can improve the energy
professionals, make sure to include scope for these team members to efficiency of U.S. multifamily properties by 15-30% and save $3.4 billion in
spend time during the construction phase in order to: annual utility costs, according to ACEEE.69 And yet, the multifamily sector
has been slower than the commercial building sector to prioritize
» Ensure the building is built to specifications;
stewardship of energy and water use in buildings. There may be a number
» Effectively manage the substitution process during construction of unique reasons for this:
(substitutions may be necessary to hold schedule or cost, but any
a. Commercial buildings increasingly require certifications such as
such substitutions need to be evaluated against the OPR, predicted
LEED, WELL or BREEAM to meet corporate or Code-mandated
performance metrics, and building lifecycle goals);
sustainability goals. Meanwhile, residential development has
» Ensure the building envelope is constructed from the specified generally not been required to certify to any sustainability standards,
materials or substitutions with identical performance specs and and residential property tenants are a diffuse, long-tail market and
assembly compatibility, and that the enclosure is assembled properly don’t wield the same market influence as commercial tenants. As a
from a performance perspective (air, moisture, and thermal); result, sustainability has not been emphasized in multifamily projects.
» Create and memorialize an effective operation and maintenance b. In many multifamily buildings, tenants pay some or all of their utilities
manual before the building is turned over; directly. Thus, the perception is that the initial capital expense for
more efficient and sustainable building systems (e.g., solar, battery
» Train property management and facilities staff during the process of back-up and energy efficient building envelopes) would accrue to
commissioning the building. tenants — not to owners.
See also Section 3.2.2 above to ensure that the right team is in place and In both instances, conventional wisdom is rapidly changing. First, tenants
empowered with appropriate processes to provide effective construction increasingly want to understand the sustainability and wellness features of
oversight for multi-family housing projects. the building in which they will live. Additionally, and if properly
communicated with tenants, decarbonized building systems can lower
tenants’ utility bills and improve their physical wellness. This, in turn, can
enhance tenant retention and ease the operational burden and financial
impact of managing tenant turnover.
3.4.1_TRAIN FACILITIES STAFF AS PART OF COMMISSIONING Ideally, the MEP team and/or commissioning agent should collaborate
with the property management team to prepare a comprehensive O&M
Many commercial building projects are pre-leased to tenants (or even manual. While this may occur in the ordinary course of a project (and is
built-to-suit for a single tenant). Conversely, the end of construction on often provided by the construction team), it is recommended that the MEP
a multifamily project can be a particularly busy time, often coinciding with team and commissioning agent be required to effectively support property
pre-leasing, marketing, and move-in activities for a myriad of tenants, each management in developing and reviewing any O&M manual prepared by
of whom is likely to have different questions and needs. Understandably, the construction team.
the property management team at handover is likely focused on occupancy
— and yet it’s this crucial moment that also requires the team’s attention
to learning about and managing building systems that may be new to them. 3.4.2_MONITOR, MAINTAIN, AND VALIDATE
BUILDING PERFORMANCE
One potential antidote to this time crunch is to begin the process of
hand-over to the facilities operations and maintenance (O&M) and property As the old adage goes, “you can’t manage what you don’t measure.” There
management teams earlier in the construction process. Allowing these are a number of ways to approach Measurement and Verification (M&V),
teams to interact with the design team and commissioning agent during each with varying levels of effort and benefit:
construction can make them better prepared to operate their building
as intended. For example, a lunch-and-learn overview of the building’s » Energy Star Benchmarking: the US EPA provides the “Portfolio
sustainability features and review of the OPR with the property management Manager” tool as part of their Energy Star program. This free tool is
team (especially if they didn’t already participate in developing it — used by hundreds of thousands of buildings to measure and track
something highly recommended where feasible) can help facilitate their energy use; multifamily properties with 20 or more units receive
a smoother handover. Allowing the facilities O&M team to attend a score on a scale of 1–100, which is a rating of a facility’s energy
commissioning meetings and testing activities can ensure that the operations use compared to similar properties nationwide.70 Projects can be
staff become familiar with the specific building technologies used. “certified” under the program when receiving a score of 75 or greater.
Energy Star certification can actually begin in the design phase, as the
Ways to use the commissioning process to improve the handover of program has recently added the “Designed to Earn” certification.71
facilities from construction to operations are discussed in more detail in It should also be noted that the US EPA has a similar program for
Volume 2, section 2.7.1. In addition, video recordings of training sessions water use called “WaterSense Labeled Homes.”
(and even commissioning meetings and functional testing activities) can
help to reduce the adverse impacts of staff turnover. While there are » Basic M&V: this can be as simple as comparing utility bills to a site
companies that will record and digitally organize these meetings, it is also and building specific energy performance prediction. This prediction is
possible (for projects with small budgets) to record the meetings on a materially different from Energy Code compliance calculations. Energy
smartphone or inside a video conference (e.g. Zoom) and to keep these modelers with experience in preparing “predictive” energy use models
digital files as part of the O&M records. can adapt Code compliance models to the needs of an M&V process. 72
70 https://www.energystar.gov/buildings/resources_audience/multifamily_housing
71 https://www.energystar.gov/partner_resources/residential_new/program_reqs/mfnc_cert_process/designed_earn_multifamily
72 For a more detailed discussion of this, see “An Architect’s Guide to Integrating Energy Modeling into the Design Process,” published by the AIA. | https://www.aia.org/resources/8056-architects-guide-to-integrating-energy-modeli
» Advanced M&V: since utility bills can only provide data on total 3.4.3_MARKET THE VALUE OF LIVING IN A
energy use, deviations from predicted performance can be
DECARBONIZED BUILDING
complicated to analyze and require careful evaluation in order to
identify potential causes that can be acted upon. Advanced energy Many multifamily developers have chosen to focus “sustainability”
and water metering can make deviations easier to analyze. LEED, investments into a building’s physical systems (e.g. solar panels or Energy
BREEAM and other rating systems encourage the use of such Star rated appliances) rather than sustainability certifications (e.g. U.S.-based
sub-metering. Check locally as well, since jurisdictions are increasingly certifications such as LEED, GreenPoint, WELL, Fitwell, Green Globes,
requiring energy submetering. However, there can be a significant BREEAM, etc.). While each owner needs to make an individual choice about
positive return on advanced M&V investments. No one would think the value of certification, we recommend the following considerations:
twice about asking a car dealer to explain why the actual gas mileage
of your new car was only 70% of the EPA window sticker mileage. » The challenge of communicating clearly to residents about the
This should be true of buildings as well. sustainable features of a building can be addressed by having a
third-party framework in which to describe them. When carried
» Monitoring Based Commissioning (MBCx): this robust process can through to certification, these frameworks also provide quantifiable
evaluate building performance as well as enable a process of driving achievements compared to an objective standard. Furthermore, having
performance towards the expected result. For more discussion of this these accomplishments validated by a third party can help address
strategy, see Volume 2, Section 2.8.1. any concerns about green-washing.
Ideally an M&V process would be incorporated into regular, seasonal, » The role of each tenant in ensuring the building achieves its
or quarterly checks performed by property management teams. This can sustainable performance potential can be more clearly explained.
help ensure that equipment is operating within pre-identified performance
criteria and that operational efficiencies are being maintained. For newly » Participation in certification can help explain the myriad benefits
completed buildings, it’s ideal to include seasonal check-ups in the initial to residents.
building commissioning process.
Key benefits that can be effectively tracked via certification and then
It is also recommended that buildings be “recommissioned” after a few marketed and communicated to residents include:
years of operation. Information on the value of this effort can be found in
» Wellness Benefits: there are significant wellness benefits to living
Volume 2, Section 2.8.2.
in a sustainably designed and built building. For example, residents
should learn about the improved indoor air quality from switching out
natural gas for electric cooking appliances (Volume 5 of this practice
guide provides a deep dive into all-electric kitchens). We also
recommend checking out the Well Building Standard for additional
ideas and guidance.73
73 https://resources.wellcertified.com/tools/multifamily-residential-checklist-well-v1/
» Financial Benefits: Decarbonized and all-electric buildings can be less 3.4.4_PROACTIVELY ENGAGE TENANTS TO BE STEWARDS
expensive to operate, particularly if electricity use patterns maximize
OF ENERGY AND WATER RESOURCES
the benefits of a utility’s time of use rates and water fixture efficiency
is maximized. We recommend communicating the value of these Effective stewardship of resources in a sustainably designed multifamily
savings, and — if you feel comfortable — providing a sample utility bill building requires the direct engagement of tenants. They are the primary
comparison. LEED, for example, provides a framework for quantifying users of the building, and their actions may have a meaningful impact on
cost savings from energy and water use reductions.74 the outcome. We recommend a program of activities, planned in concert
with and carried out by property management, that includes the ability to
» Resiliency Benefits: Decarbonized and all-electric buildings can offer
educate, communicate, and playfully remind and engage tenants in good
crucial resiliency benefits, particularly if solar and battery back-up
stewardship practices.
systems were installed. For example, if the building provides back-up
power for refrigerators, select plug loads, building wifi, or even some » Educate: There are myriad opportunities to educate residents.
limited air-conditioning (critical to vulnerable populations during For example, consider signage in the lobby that memorializes the
extreme heat events), the benefits of these systems operating during sustainability features incorporated in the design and construction
power outages should be communicated to every resident. RELi 2.0 is process. Share an overview of building systems with residents upon
the most comprehensive certification rating system currently available move-in and post the overview in the building (e.g. in a laundry room).
for socially and environmentally resilient design and construction.75 Another opportunity is to post regularly updated or rotating reminders
about the impact of timing energy use to low cost and low carbon
Increasingly, and thankfully, people want to participate in actions and
periods, including how to use the programmable features of different
choices that can help avert the worst impacts of climate change. Sharing
appliances (like dishwashers and thermostats) to assist in this effort.
with tenants the anticipated benefits of choosing to live in a decarbonized,
Residents need information in order to actively support efficient and
all-electric residence, and how emissions reductions were achieved by the
sustainable operation.
design and construction process can be especially positive and beneficial.
Furthermore, property managers benefit from being clear about how » Communicate: Data visualization can be a really powerful tool.
tenants can participate in ongoing environmental and resource stewardship When the building is planned, designed, and constructed, make sure
through their individual actions. to install monitoring equipment that will allow you to share real-time
visualizations of energy consumption (and energy production, if
renewable energy generation was incorporated). Many solar providers
furnish the equipment that can be used to aggregate building electricity
demand and production in a summary visualization. These graphics can
be shared with residents either via a custom application, a sheet of
FAQs, a website, or on a welcome screen when they enter the building.
Sharing with residents real-time access to energy and water use data
can serve as an invitation for them to reduce consumption.
74 https://www.usgbc.org/resources/leed-homes
75 https://www.usgbc.org/resources/reli-20-rating-guidelines-resilient-design-and-construction
» Remind and Engage: Residents increasingly want to participate in At the beginning of 2020, the atmosphere’s remaining “global carbon
sustainability efforts, but we need to give them the tools to do it. It budget” was approximately 340 billion tons.76 Appropriate management and
also helps to make sure that engagement is fun and rewarding. Teach reuse of refrigerants is projected to slash 100 billion tons of equivalent
them about how time of use impacts the grid, their energy bill, and global CO2 emissions between 2020 and 2050.77 Proper refrigerant
carbon emissions — and then host a competition to see which units in management should be taken extremely seriously, and all EPA
the building can reduce their energy consumption the most in a given requirements under Section 608 of the Clean Air Act should be followed.
month. Include sustainability in tenant engagement programming and There are at least five parts to a successful leak reduction program:
provide shared rewards — for example, residents can get to know one
another over pizza after a successful effort. Energy Star provides 1. Leak Detection
helpful guidance about hosting energy saving competitions, and their 2. Leak Repair
resources include activity kits for children. Perhaps you can even help 3. Leak Prevention
one of your young tenants win the local science fair! 4. Performance Measuring / Tracking
5. Goal Setting
3.4.5_MANAGE REFRIGERANTS RESPONSIBLY The new EPA Section 608 regulations attempt to keep ozone depleting
substances — and other chemicals related to climate change — in check
Many of the systems, equipment, and appliances that may be considered (see Figure 3.15). These regulations will also help drive value from the point
for multi-family residential projects currently use refrigerants R-134a or of view of maintenance. The record-keeping required to track and maintain
R-410a. Unfortunately these refrigerants are very powerful global warming these systems will provide great insight into systems that are performing
agents. For context: poorly and costing operators money.
» A release of all the R-134a refrigerant in a typical residential storage- While all organizations are expected to have a solution that keeps them in
type heat pump water heater would be equivalent to the climate compliance, establishing a process that highlights poor performing
change impacts from a typical gas water heater with ~3% methane equipment is where the most value in an improved maintenance regimen
leakage per year. can be found. Refrigerants have become a double-edged sword, as they
can leave operators open to regulatory fines and increase repair and
» A typical refrigerator using R-134a can contain 0.25 kg of refrigerant, replacement costs when not well monitored.
which if released into the environment would result in the emissions
equivalent of driving 2,130 miles per year (3,427km) in an average Many jurisdictions are looking into applying their own regulations to keep
family-sized car. ozone depleting substances in check. California has been utilizing its own
rules since 2011. New York and Maryland have been creating their own
Roughly 90% of refrigerant emissions occur at an equipment’s end regulations as well. Managing refrigerants is a responsibility that is not
of life, according to Project Drawdown. This means that proper disposal going away any time soon and delaying the process will only open
is essential. organizations to legal risks, negative PR, and fines. The following website
provides information on refrigerant management requirements in over 30
States in the U.S: https://www.blr.com/Environmental/Air/RefrigerantsODS.
76 Immediate Action Required: An Open Letter to the UNFCCC Secretariat – Architecture 2030
77 Search Reuse & Destroy, Environmental Investigation Agency | https://eia-global.org/about
REFRIGERANT RECOVERY
RECLAMATION AND/OR RECYCLING
EQUIPMENT
Recovered refrigerant must be
reclaimed to specified purity Equipment must be certified by an
levels by an EPA-certified EPA-approved testing organization
reclaimer before it can be re-sold. to meet EPA requirements for
FIGURE 3.15: refrigerant recovery efficiency.
SECTION 608 REGULATORY
REQUIREMENTS —
STATIONARY REFRIGERATION
SAFE DISPOSAL
AND AIR CONDITIONING REFRIGERANT LEAKS
The final person in the disposal
chain must remove (or make AC and refrigeration equipment
certain that their customers have with 50 lb or more of ozone-
removed) refrigerants prior to depleting substances are subject
appliance disposal. to specific EPA requirements for
leak repair.
RECORD KEEPING
Service technicians, owners and
operators of large refrigeration and REFRIGERANT SALES
AC equipment, refrigerant wholesalers RESTRICTION
and EPA-certified refrigerant
reclaimers must document dates, Refrigerants can only be sold
refrigerant charge amounts and for use to certified technicians
related information for equipment
servicing and disposal.
Source: https://www.epa.gov/section608/section-608-clean-air-act
3.5_Assessing Costs and Value risen in each census region, particularly in the Midwest and in the South.79
Heat pump technology has led to a more than 20% increase in the share of
This section is intended to empower the users of this practice guide with homes using electricity to power the main heating equipment, and there
the evaluative framework and questions necessary to analyze the cost of are similar increases in the market share of homes relying on electricity for
all-electric and decarbonized construction in your (or your client’s) subject domestic hot water.
property or development; case studies and links to additional property
While the EIA data is somewhat more focused on the single-family home
comparables are also provided. This information is intended to demonstrate
market, the data remains significant because it demonstrates that: (1)
that decarbonization is feasible, that the electrification and decarbonization
consumers are accustomed to all-electric construction, appliances, and
of residential structures can be the norm, and that it is cost beneficial.
mechanical and plumbing equipment, and (2) the technology, market, and
Overview — Addressing Concerns & Fears: The fields of architectural personnel required to service this design approach is increasingly robust and
design and construction are a primary home for innovation with respect to stable. As such, the all-electric construction market is poised for significant
climate adaptation and resilience for buildings. On the other hand, many growth. The increase in market size should drive down cost as manufacturers
would postulate that it’s harder to take risks in construction because of the achieve economies of scale in production and installers and subcontractors
great cost of any development or retrofit and that, as a result, the real further increase their familiarity with these products and systems.
estate industry can be risk-averse and slower to adapt. For example, some
Alignment of the regulatory framework to encourage electrification and
of the understandable fears expressed by owners and developers about
decarbonization is growing. In Washington, DC, the December 2018 passage
all-electric and decarbonized construction include:
of the Clean Energy DC Omnibus Act greatly expanded the market for energy
» It’s too expensive efficiency retrofits by mandating efficiency standards in existing buildings.
» It’s too risky, it won’t work, and the technology isn’t proven New building regulation is increasingly mandating all-electric construction,
» Development is difficult already — don’t add further complexity as is now the case, for example, across 40 municipalities in California or as
» My staff doesn’t know how to maintain this stuff reflected in the regulatory battles in Massachusetts.80 However, while
» What if it requires more maintenance than is typical? support for building decarbonization is expanding at the local level, the role of
» I’m used to what I already do, and so are my debt and equity investors natural gas use in the built environment is still a hotly debated topic in many
State Legislatures (see Figure 3.16).
All-electric, decarbonized construction is not a new phenomenon; moreover,
not only is it feasible, but in some parts of the U.S., all-electric construction While this context may assuage concerns about risk, maintenance,
has been the norm for many years. For example, the U.S.Energy and the regulatory landscape, how do we dispel concerns about cost?
Information Administration (EIA) estimates that in the Southeast, nearly 45 Are all-electric and decarbonized buildings really a financial risk, or is the
percent of homes use only electricity.78 Further, the results of the EIA’s 2015 real financial risk choosing not to electrify and decarbonize a subject
Residential Energy Consumption Survey indicate that 25% of homes development? A thoughtful framework for the evaluation of the requisite
nationwide rely solely on electricity, and the share of all-electric homes has capital expense (or first cost) and operating expense (or ongoing cost)
yields a surprising outcome for the skeptics among us.
78 https://www.eia.gov/todayinenergy/detail.php?id=39293
79 https://www.eia.gov/consumption/residential/index.php
80 https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/mass-building-gas-ban-movement-expands-after-2020-setback-62026427
State legislation prohibiting local governments from restricting natural gas » Identify costs and benefits so they may be categorized by type
utlity service and intent;
■ Passed ■ Introduced in current session
» Calculate costs and benefits to include not only first cost but also
Local gas bans and electrification codes on new buildings operating cost and exit value across the assumed life of a project
■ Adopted ■ In development or initiative;
Source: S&P Global Market Intelligence
» Compare cost and benefits by aggregating all of the defined inputs.
3.5.1.1_Sample Ground-Up Multifamily Development Cost Framework Step 1: Optimize the structural design. It is important to bring structural
engineers into planning conversations early, as optimization of structural
It may be obvious that key elements to any development cost framework systems can be heavily influenced by structural bay sizing that is often
need to include: assumed in the development of test fits for dwelling unit layouts.
Also, alternatives to conventional concrete podium construction should be
» Capital Expenses/Savings (or first costs – including construction time
evaluated (e.g. cross laminated timber (CLT) can often be much less costly).
and financing costs)
Structural design considerations for multifamily housing are discussed
» Operating Expenses/Savings (or ongoing cost) in Section 3.2.3.2, and embodied carbon considerations, in general,
are discussed in Volume 6.
» Impact of Decarbonized and All-electric Construction on a Project’s
Exit Value Step 2: Set an overarching goal to drive down the energy use intensity
by maximizing the performance and insulative capacity of the building
The “key” however, is to perform a sufficiently comprehensive analysis. envelope. The use of exterior insulation, for example, may also have
There is great risk in not giving adequate attention to all of the cost additional benefits by increasing the amount of net rentable space. Further,
elements, particularly because it is easy to overweight the capital expense the reduction in overall building heating and cooling loads will subsequently
of decarbonized all-electric construction if one is not rigorously analyzing reduce the size and cost of systems ranging from photovoltaic arrays to
the benefits (e.g. decreased construction time, reduction in infrastructure switchgear and electrical infrastructure. Opportunities to increase envelope
expenses, improved operating income, etc.). performance are also discussed in greater detail in Volume 2, Section 2.6.1.
As reported by the EIA, in many jurisdictions — including cold-weather Step 3: Carefully evaluate the use of centralized vs. decentralized
jurisdictions — decarbonized construction methodologies and equipment mechanical and plumbing systems. Decentralized systems have recently
have already achieved cost parity with “traditional construction” (even emerged that can save first cost. For example, at Coliseum Place —
based solely on the cost of building materials and installation). Once you a 59-unit, 6-story high rise building in Oakland, California — the project team
include the reduction in operating expenses typically achieved by chose to deploy a “mini-plant” domestic hot water design where multiple
decarbonized construction practices, all-electric construction quickly residences share an 80-gallon heat-pump water heater. This approach is
becomes accretive with respect to financial performance as well as estimated to have cut the domestic hot water use in half — saving an
occupant retention, health, and well-being. amount of energy nearly equal to the total amount of the projected HVAC
energy use. There were also first cost savings related to the domestic hot
3.5.1.2_Capital Expenses/Savings: Hard Costs, the Cost of Building water design; specifically, a $32,000 savings from not installing the gas
Materials, and the Installation Thereof piping to a boiler system, and a $200,000 savings from sharing one
80-gallon HPWH per two apartments as compared to a whole-building
As we’ve said, there is no one-size fits all solution to reducing hard costs central system. This design approach did not reduce the quality of the
in decarbonized buildings, but there are best practices to achieving hard DHW service: 3/8" and 1/2" piping from manifolds at the 80 gallon tanks
cost reductions: provides hot water to all fixtures within 10 to 30 seconds. In the same
project, rather than installing ducted mini-split heat pumps in each Perhaps even more importantly, the reduction in infrastructure saves time
apartment (at the cost of $13,000 per unit), the units each use $8,000 at critical junctures of a project. For example: the reduction in joint trench
whisper quiet package terminal heat pumps (PTHPs) in the living room and coordination can speed time to issuance for utility permits; the reduction in
master bedrooms with baseboard heating in the additional bedrooms. the amount of installed utility infrastructure can accelerate the time-to-
install for utility power (since the electric utility no longer has to coordinate
Step 4: Exercise patience, examine holistically, and iterate. Even in with the gas utility); and the simplicity of a single energy source can reduce
situations where the hard cost of labor and materials is more expensive, the inspection timeframe, particularly just before the project is finalized for
the savings in reduced infrastructure and time can still net the project a certificate of occupancy when the carrying-costs of a construction loan
overall first cost savings; operational cost savings can create further are highest.
benefits.
Step 5: Leverage existing case studies to push back on the myth of the
“complexity premium.” This is particularly important during the bidding SPECIAL HIGHLIGHT: HOW TO WORK WITH YOUR LOCAL UTILITY TO
and estimation phases. While the techniques, technologies, and systems ELIMINATE OR REMOVE ONSITE GAS INFRASTRUCTURE:
for decarbonized all-electric construction aren’t new, general contractors
and subcontractors may still express unfamiliarity or impose a “complexity There are private and public equity benefits to the reduction in gas infrastructure.
premium” (referred to in previous sections as “risk pricing”). These The true cost of new gas infrastructure is not fully passed on to developers or
premiums should be challenged by leveraging the case studies in this owners when a new service is installed; cost is recouped over several decades
practice guide and by comparing them to traditional technologies. For and amortized over the utility’s entire customer base. In certain jurisdictions,
example, the PTHPs deployed today are actually easier to install than the a utility company is allowed to charge customers a gas removal fee if the gas
PTACs of yesteryear. Also, when heating systems only rely upon electricity, infrastructure was installed within 10 years. As such, it is often in the owner’s
there is less infrastructure (i.e. no natural gas) to coordinate and install. best financial interest to start with an all-electric building instead of converting
the building to all-electric operation within the first 10 years of operation.
3.5.1.3_Capital Expenses — The Benefits of Reduced Infrastructure As the regulatory environment quickly shifts to favor all-electric construction,
there may be even more imminent disincentives to planning mixed-fuel projects.
Taking natural gas out of the building provides many benefits. Chief among
Since all-electric buildings are still in the early stages of adoption as a design
these are faster permitting, lower utility installation costs, and reduction in
paradigm, there are neither national nor consistent state-wide policies, and
design and coordination costs. Furthermore, for rural projects, where the
many utility companies do not have fully standardized protocols for existing gas
natural gas infrastructure can be far away from the subject development,
infrastructure removal for a decarbonized retrofit project. Thus, it is highly
the savings are likely to be even greater. Pricing for recent projects in San
advisable to contact the gas utility company servicing the project’s jurisdiction
Francisco yielded per-unit infrastructure cost savings — from removing the
well ahead of time to determine the proper steps to remove and cap existing
gas from the building — ranging from $75/unit to $1,040/unit.81
gas infrastructure to ensure public safety. The discussions should define
81 Per email w/K. Ackerley. Maceo May had a $1040/unit savings and D. Baker Architects has seen savings of $75/unit to $125/unit for eliminating gas.
4. Have life cycle cost analyses included the specific equipment Quick Tip: For more information regarding financing programs that leverage
replacement time horizons relevant to the project’s local climate? improvements in net operating income (NOI), speak to your lender. Some
programs offer rate reductions for building sustainability initiatives. Your lender
» If you are able to design an all-electric building using equipment with may also have access to PACE or C-PACE (Commercial Property Assessed
a longer life expectancy than the mixed-fuel designs, as appropriate to Clean Energy) Financing Programs. To see if PACE programs are active in your
your location and local climate, this can reduce the life cycle cost jurisdiction, check out Figure 3.17 and find a resource like https://www.
impact of equipment replacement costs. assetenvironments.com/pace-financing.html. Please note: in some
jurisdictions, contractors may offer PACE financing directly to clients. In such
5. Has anyone spoken with the project’s lender or brokerage team to see if
instances, we encourage owners to seek financial guidance from a PACE
there may be lower rates available on construction financing?
lender to confirm that projected savings from any PACE upgrades will be
3.5.2.2_Operating Expenses and Savings sufficient to cover the costs of servicing the debt created by the PACE financing.
3.5.2.2.1_ADDITIONAL OPERATING COST BENEFITS OF 3.5.2.3 _Navigating Split Incentives — First Cost vs Operating Costs
DECARBONIZED CONSTRUCTION
Historically, in multifamily rental and office projects, the owner paid to
In addition to lower utility expenses, there are other benefits to all-electric
construct the building, but operational utility costs were passed along
and decarbonized construction. These include:
to the tenants. This set up a situation where the owner was incentivized
» Decreased maintenance cost and complexity; heat pump equipment to reduce capital expenses but was less incentivized to minimize energy-
is often resilient and low-maintenance when compared to combustion related operating expenses. Conversely, if utility bills are included in a lease,
based heating systems (e.g. furnaces or boilers). Boilers and furnaces there is strong data to suggest that residents are not particularly focused
often have many unrelated parts that need attention (gas supplies on energy conservation. According to a study from ACEEE, the U.S.
and flues), and lack of maintenance of these features can cause multifamily housing sector alone represents a $3.4 billion energy cost
safety issues. savings opportunity.82 Other studies have found that annual costs for
landlords were 20 percent higher relative to when tenants directly paid the
» The reduction in maintenance costs over time allows for the project’s bills or when there was a “green lease.”83
ownership (whether non-profit or for-profit) to reduce the maintenance
reserves for the property, increasing the project’s ability to service debt. There are a number of best practices to resolve these inherent conflicts:
» Decarbonized construction is more resilient; while the benefits 1. In instances where ownership will pay for utility expenses and/or where
of resilience are difficult to quantify (see discussion in Volume 2, the building is substantially incentivized, owners should remember that
Section 2.6.7), they may include: any reduction in energy usage will accrue to the project’s overall benefit.
However, if owners are paying the bulk of the utility bills, tenants
- Lower insurance rates, particularly as insurance rates increase in shouldn’t be given a blank check:
the wake of extreme weather events.
a. Software is available that will show owners and tenants what
- Higher tenant retention rates or even higher rent (or sale prices, building energy consumption is on a month-to-month basis (as energy
if condos), particularly in regions prone to extreme weather events, benchmarking laws expand, this may become a requirement and not
such as wildfires, hurricanes, or tornadoes. Consumers today merely a best practice). “Virtual Grid” software can be an alternative
understand more intuitively the intrinsic value of living in resilient to traditional sub-metering methods for cost recovery. These platforms
buildings and the myriad benefits of onsite, back-up power. ensure that multi-unit properties' solar benefits are distributed by
comparing resident “behavior” (often using proprietary algorithms)
to equitably distribute the benefits of solar based on real time usage,
solar availability, and avoided utility cost.
82 https://www.greentechmedia.com/articles/read/multifamily-housing-a-3-4b-u-s-energy-efficiency-opportunity
83 https://www.greentechmedia.com/articles/read/a-graphic-that-illustrates-the-problem-with-split-incentives
b. Gamify good energy efficiency practices by engaging tenants in residential customers. While these rate structures don’t always incentivize
reducing utility bills and offering prizes or rewards. the use of grid electricity with the lowest carbon content, these pricing
structures may offer utility cost savings opportunities for all-electric
c. Include only a maximum, annually adjusted/reviewed, energy or projects. These opportunities come from using strategies that reduce
water amount in a tenant’s utility allowance, and hold the tenant overall energy consumption, compared to conventional building design,
responsible for usage in excess of the allowance. as well as designs that employ load shifting strategies or technologies that
shift energy use to hours with lower electricity rates (see more detailed
2. If tenants are paying the bulk of the utility bill, owners may be
discussion of this in Volume 2, Section 2.6.5.3, “Load Shifting and Thermal
additionally able to:
Storage”). In order to take advantage of these opportunities:
a. Explore the use of a “green lease,” an agreement between landlord
» Hire a team with demonstrated experience in designing, installing,
and tenant to share the cost (and savings) of an efficiency upgrade
and commissioning the strategies that will deliver these results.
or highly efficient building systems whereby the owner makes an
investment in upgraded efficiency and the tenant shares in the savings. » Engage a solar power provider early, preferably one that also has
expertise in the installation of battery energy storage systems (BESS).
b. Achieve higher rental rates by lowering resident’s utility costs
Energy Storage Systems are discussed in greater detail in Volume 2,
through investments in highly efficient buildings. There are ways to
Section 2.6.5.1.
structure leases so that owners don’t assume undue risk and tenants
have confidence in their overall cost exposure when relying on - Operating costs can be substantially reduced by maximizing
predictive energy models for selling this approach. the physical space available for solar system installation and
by including battery energy storage technologies for load
c. Virtual Grid software can help owners capture some of the benefits
management.
of reduced energy cost while allowing tenants to share in the cost
reduction benefits of energy efficiency measures. - The resiliency benefits of solar systems combined with a BESS
can be a significant enhancement to a project (see also Volume 2,
3.5.3_NAVIGATING UTILITY PRICING FRAMEWORKS Section 2.6.7.1, “Microgrids, ‘Islanding’, and Resiliency”).
A growing percentage of grid-supplied electricity throughout the country is - A good solar provider will calculate both physical space needs
from renewable energy sources (see detailed discussion of this in Volume and capital expense payback periods for PV and PV+battery
2, Section 2.4.1, “Transition from a Zero Net Energy to a Zero Net Carbon installations. A qualified energy or engineering consultant can
Mindset”). Combined with the growth of distributed solar energy systems often help with this as well.
and the growing number of electric vehicles in garages, more and more
utilities are making time-of-use (TOU) rate structures available to their
3.5.4_IMPACT OF DECARBONIZED AND ALL-ELECTRIC » Any increase in net operating income will increase the exit value
of the property by a multiple of the capitalization rate. The prices
CONSTRUCTION ON A PROJECT’S EXIT VALUE
for most multifamily-rental properties, when sold, are based upon a
Fundamentally, the value of a property upon sale is a function of location capitalization rate applied to the NOI.
(as the old adage goes). However, location — just like operating expenses,
» Consider requesting a whole building life-cycle assessment to
resilience, or any other quantifiable or qualitative benefit — ultimately
review and validate both the operational and embodied carbon
manifests in the rental rate achieved (or sales price, in the case of
savings as well as the potential improvements to NOI. This
condominium developments), the project’s net operating income
assessment process is discussed further in Volume 6, Section 6.2,
(or cost-to-own), and tenant retention (or time to sale).
“Estimating Embodied Carbon”.
It is critical that we make design teams, developers, owners, investors,
lenders and appraisers more aware of the positive impact of decarbonized
and all-electric construction on a project’s exit or appraised value.
3.5.5_HIRING PROFESSIONALS TO ANALYZE COST
For example, these positive impacts include: Volume 2, Section 2.3, as well as Section 3.2.2.2, include guidance on
how to assemble a team to design, estimate and build energy-efficient,
» All-electric options can reduce both maintenance expense and
all-electric, low-embodied carbon buildings. Here are some key steps that
reserve requirements in many cases, enabling increases in net
we wish to emphasize here:
operating income to be achieved. We encourage developers and
design team members to iterate to the solution in your respective » Consider assembling key professionals earlier in the development
climate that facilitates these savings. and entitlement process than you might typically.
» Lower utility expenses can increase net operating income. This - Early planning can save time and effort later in the design
improvement in net operating income provides a stronger cash stream development and construction drawing process, so this does not
for the duration of the project. It can also lead to greater opportunity necessarily add cost. Key professionals to consider engaging in
to finance or refinance debt, in either case improving leverage ratios schematic design include: architects (this is conventional), as well
(based on either predictive or actual EUI). as structural engineers, MEP engineers, and the energy/carbon
consultant. Please note, the structural and MEP firms may be able
» Many tenants are increasingly attracted to healthy, sustainable
to provide a very limited, low cost consulting engagement at these
buildings; above-market rents may be achieved, and tenants may stay
early phases of the project.
longer. Moreover, because the building may be more attractive to
potential tenants, lease-up may proceed more quickly: while this is - The architect and energy/carbon consultant may be able to serve
one-time income, it’s an important metric for developers as critical the earliest needs in brainstorming and schematic phases of the
early income helps achieve initial investor preferred returns. project. Alternatively, some MEP firms provide integrated design
and energy/carbon consulting services.
» There are often more comparable all-electric projects in your area - Please cross-reference our case-study database at http://www.
than you realize. electrifiedbuildings.org/. Each case-study includes a list of the key
development, design and construction professionals that worked on
the project. We recommend you reach out to learn and share best
practices and to find resources that may help you along the way.
3.6_Case Studies
3.6.1_THE UNION (SMALL SCALE)
20.24 kW PV (combined) Rooftop System; 355w solar modules » This is an example of how the pace of technology development has
Electrical Load Offset
with integrated micro inverters quickly outpaced building code development. Regulators need to
account for the ongoing technology development as we look ahead
Actual EUI -- toward the transition to all-electric building codes.
Building Code 2016 California Building Code » While heat pump technology is growing in its market dominance,
the labor pool available that was also certified by the manufacturer
eSix Development Partners, in partnership with OpenDoor to install the hydronic HVAC equipment was limited and, therefore,
Developer
Coliving in very high demand. There still remains opportunity to develop the
workforce pool that is knowledgeable about the installation of green
Structural Engineer ONE Design building systems, which would scale the capacity to install such
systems and create good jobs.
Architect Baran Studio Architecture
Lessons Learned:
MEP Engineering Design/Build by Architect & GC
» All-electric affordable housing in California can be cost neutral or a
General Contractor Design Draw Build, Inc.
lower cost to build than conventional design.
» Going all-electric did not significantly increase capital costs; the first » Programmable heat pump based hot water heaters may serve a
cost elimination of natural gas saved money. As important — if not dual purpose as one of the most cost effective energy storage
more so — it saved precious time coordinating inspections for both methodologies; the water can retain sufficient heat even if it’s
electric and natural gas; these inspections often become part of the programmed to decrease the temperature during the utility’s peak
critical path for achieving the certificate of occupancy. load time frame.
Net-zero capable, Maceo May is designed to maximize energy A rooftop 123-kilowatt solar PV array with on-site battery storage is
efficiency with an anticipated energy use intensity (EUI) that will be designed to prioritize power for a first-floor community room that
about 70 percent lower than an average multifamily building in the doubles as a “resilience hub.” Inverters link the array to both battery
United States. Air-source heat pumps provide hot water three to five storage and the local grid so Maceo May has the ability to be self-
times more efficiently than a typical boiler. A high-performance building sustaining. The battery backup system is located on the top floor to
envelope that incorporates 1.5 inches of rigid-mineral-wool continuous prevent problems in the event of flooding.
insulation minimizes heating and cooling loads, allowing smaller
residential heating equipment and cutting costs. The back-up systems power critical building features that support
resident well-being, such as refrigeration (for storing essential daily
Occupancy sensors and daylight dimmers also limit electricity use. The medications), basic light and power (including for charging devices), and
development team also chose to install an energy recovery ventilator cooling for data and wi-fi closets that are specifically circuited for the
(ERV) with a MERV 13 filter for every residential unit. The ERV reduces ground-floor community space. The resilience hub’s operability during
HVAC electricity consumption, and the MERV 13 filter exceeds power outages is a means of minimizing disruption in residents’ lives,
conventional practice and will help filter particulate matter and airborne a key resilience goal in a home for veterans.
debris to maintain better indoor air quality, which is a considerable
concern during wildfire events.
HVAC Common Areas: VRV Split Systems; Residential Units: ERVs
Given that a significant amount of construction will occur on Treasure and Small Cadet Electric Resistance Wall Heaters
Island for a long time after the building opens, and that we’re housing
a population who bears disproportionate health issues such as DHW Central Heat Pump Hot Water System (Colmac) with
recirculating loop
compromised immune systems and other effects from having endured
trauma, designing to limit solar heat gain while providing for good
Cooking Electric Resistance, Energy Star
indoor air quality is paramount. Accordingly, at Maceo May, passive
design strategies and superior ventilation also serve to limit energy
Building Envelope Rain Screen with Fluid Applied Waterproofing Membrane
use, create good air quality, and support the thermal comfort of above 1½" Continuous Insulation (Rigid Mineral Wood) and
residents, especially during potential power outages. Maceo May is R-19 batts in Type IIIA Construction (Wood Stud above Metal
oriented to take advantage of San Francisco Bay breezes. Windows are Stud on Level 1). Thermally-broken Aluminum Frame
dual-pane argon-filled low-E glazing with U-Factor of 0.38,
operable and have a low u-value (resistance to thermal conduction) and
SHGC of 0.18 and VLT of 0.39
solar heat gain coefficient (resistance to direct solar heat gain) by using
double-pane, argon-filled, low-E glazing (indicating a high level of 123 kW pV Rooftop System with 20 KW Lithium Ion Battery
insulation and resistance to heat transfer). South- and west-facing Electrical Load Offset
Backup
windows are shaded. In residential units, ceiling fans and operable
windows located at different heights maximize airflow. Actual EUI 18.2 EUI (anticipated)
» The all-electric building design faced challenges to achieve and » The cost of resilience features can be offset through savings from
exceed the 2016 California Energy Code, which required natural gas sustainability measures.
boilers as a baseline and did not provide an approved modeling
pathway for a heat pump DHW system, as well as a number of » Engagement between the building owner and the design team in
other weighted calculations, such as preferential scoring for solar setting outcome-based design goals preserved essential design
thermal hot water systems. features, saved time through the process, and illuminated
opportunities to achieve co-benefits.
» A lack of developer/owner familiarity with heat-pump technology
as well as energy recovery ventilator systems demanded that the » The solar array is designed to cover approximately 85 percent of
design team lead more in-depth conversations about system the common-area loads of the building. This means that the project
selection. This need to create developer/owner familiarity was is approaching near-net zero energy for common area loads, which
addressed by presenting case studies and existing project provides a significant long-term economic boost to the owners
precedents and going on tours of other all-electric multifamily by reducing strain on limited operating budgets. Additionally, the
buildings. Including the facilities management and operations staff development team sees the solar PV array as insurance against
in this effort was critical to achieving final sign off by the owners future utility cost increases and against the perceived risk of
adopting new technology (namely, the air-source heat pump hot
Lessons Learned: water system). Because there is not yet robust building
performance and benchmarking data on air-source heat pump hot
» All-electric affordable housing in California can be cost neutral, water systems from buildings of this scale in the region, the ability
or a lower cost to build than conventional design. According to the to produce on-site electricity provides the co-owners a sense of
non-profit developer, CCDC, the big takeaway is that “all-electric a safety net should the domestic hot water demands surge beyond
multifamily affordable housing is cost neutral at a minimum.” the modeled performance.
Source: Mithun
HVAC and DWH Combined HVAC and DHW with Geothermal Heat Pump
87 https://www.nyserda.ny.gov/All-Programs/Programs/Multifamily-Buildings-of-Excellence/Winners,
Round 1 winning project in the “Under Construction” category
Project Location: Newburgh, NY Source: Lana Bellamy,
88 https://www.nyserda.ny.gov/About/Publications/Case-Studies-and-Features, under
Times Herald-Record
“New Construction”
Completion Year: 2020 89 https://www.recordonline.com/story/news/2020/06/28/efficient-affordable-housing-coming-north-
miller-newburgh/3263075001/
Project Size: Not Available 90 https://www.pha-hv.org/north-miller-passive-multifamily-ribbon-cutting/
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The Building Decarbonization Coalition unites building industry stakeholders with energy providers, environmental
organizations and local governments to help electrify California’s homes and work spaces with clean energy. Through
research, policy development, and consumer inspiration, the BDC is pursuing fast, fair action to accelerate the
development of zero-emission homes and buildings that will help California cut one of its largest sources of climate
pollution, while creating safe, healthy and affordable communities. The Project Team gives special thanks to the BDC
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Building Decarbonization Practice Guide Content Leadership Working Group Members and Content Contributors
» Panama Bartholomy, Building Decarbonization Coalition » Katie Ackerly, AIA, David Baker Architects
» Rachelle Boucher, Kitchens to Life » Sean Armstrong, Redwood Energy
» Glenn Friedman, PE, FASHRAE, Taylor Engineering » Don Davies, PE, SE, Magnusson Klemenic Associates
» Christopher Galarza, Forward Dining Solutions » Pierre Delforge, Natural Resources Defense Council
» Miranda Gardiner, AIA, HKS » Patrick Doss-Smith, HGA
» Steven Guttmann, PE, BCxP, LEED Fellow, Guttmann & Blaevoet » Susan Freed, County of San Diego
» Teresa Jan, AIA, LEED AP, WELL AP, Gould Evans » Andreas Gyr, Google
» Heidi Lubin, eSix Development » Ryan Hamilton, Nyle Systems
» Kyle Pickett, William J. Worthen Foundation » Barry Hooper, SF Environment
» Katie Ross, Microsoft » Josh Jacobs, LEED AP+ BD&C, UL
» Pauline Souza, FAIA, LEED Fellow, WRNS Studio » Dirk Kestner, PE, LEED AP BD+C, ENV SP, Walter P Moore
» Alice Sung, AIA, LEED AP BD+C, SEA, Greenbank Associates » Bruce King, Ecological Building Network
» Ted Tiffany, LEED AP BD+C, Guttmann & Blaevoet » Meghan Lewis, Carbon Leadership Forum
» Lisa Fay Matthiesen, FAIA, LEED Fellow, Amazon
Project Manager » Maurya McClintock, McClintock Facades Consulting, LLC
» Brett Rosenberg, LEED AP, Treeline Strategy, LLC » Hilary Noll, AIA, LEED AP BD+C, Mithun
» Kelsey Rose Price, PE, Magnusson Klemenic Associates
WJWF Intern
» Cole Roberts, PE, LEED AP, WELL AP, Arup
» Laura Barbosa, Construction Industry Workforce Initiative
» Katie Ross, Microsoft
» Henry Siegel, FAIA, LEED AP, Siegel + Strain Architects
Graphic Design
» Stacy Smedley, Skanska
» Stoller Design Group
» Mark Webster, PE, LEED AP BD+C, Simpson Gumpertz & Heger
Copy Editor » Wolfgang Werner, AIA, LEED AP BD+C, CPHD, Urban Fabrick, Inc.
» Geoff Martin, Wheelhouse Writing Services » Breana Wheeler, BRE (BREEAM USA)
» Tamim Younos, Green Water-Infrastructure Academy