Modernizing Building Operations

By Dallas Terry – Director of Decarbonization

Sustainable Investment Group (SIG)

As more buildings develop Decarbonization pathways focused on the latest electrification strategies, controls and metering upgrades will be key to unlocking significant benefits related to building efficiency, health, and optimized operations. Such strategies overlap both Real Estate Technology Roadmaps (i.e. IT focus) and Decarbonization Roadmaps, and require dedicated coordination from multiple stakeholder groups. Central to this transformation is the integration of energy-using systems into a centrally operated Building Management System (BMS) along with granular data collection via tenant and equipment level sub-metering.

Centralized Operation for Greater Efficiency

A BMS enables centralized and remote operation of energy-using equipment, improving both efficiency and maintenance practices. For example, recent research performed by the DOE has found that HVAC energy use can be reduced by up to 30% by implementing high performance control systems. This is especially important in larger buildings such as multi-tenant high rises, which tend to use a lot of energy.

In a number of larger multi-tenant buildings, standalone HVAC systems are owned by tenants and operated by third parties separate from the building management. This can pose issues with operational efficiency and data transparency related to building performance. Transitioning to a centralized ownership and operation model, can not only help simplify and optimize operational performance, but may become a necessity as buildings adopt more centralized, efficient and electrified HVAC systems.

Centralizing operations is a multi-faceted process that requires close coordination between multiple stakeholder groups, but one that ultimately simplifies building management and can offer great potential in both smaller and larger buildings alike. Leadership, Capital Projects, Facilities, IT and Procurement are all examples of affected stakeholder teams that will likely need to be involved in the process.

Granular Metering and Data Collection

Buildings looking to upgrade their control systems should also consider parallel opportunities to improve their metering infrastructure. Some older buildings still rely on a limited number of utility meters and have limited data available to inform operations. In some cases, tenant specific energy use data is not available and must be estimated.

By implementing submetering to collect data on key systems data gaps can be filled and performance enhancing opportunities unlocked. For example, by integrating sub-metering into key central plant equipment Ongoing Commissioning (Cx) and Measurement and Verification (M&V) activities can be performed to track and improve equipment performance and improve maintenance practices.

Implementation Considerations in Controls and Metering Upgrades

For many buildings, but especially those requiring significant upgrades, such as those with dated pneumatic controls and lacking tenant-level submeters, phasing relevant projects in line with building Decarbonization Roadmaps can be an effective strategy to distribute required investment and also help meet relevant ESG and compliance goals. In NYC, such upgrades can align with compliance requirements for both Local Law 88 (LL88) and Local Law 97 (LL97), which focus on lighting and metering requirements and emissions reductions, respectively.

With buildings at varying stages of their modernization and Decarbonization journeys, some scenarios may warrant prioritization of “low hanging fruit” controls and metering upgrades in order to achieve near-term needed savings and data collection opportunities. For example, in older multi-tenant buildings with varying, dated, local controls systems spread across tenants spaces, it will likely make sense to upgrade tenant level controls and metering as part of an improvement project when Capital and decision maker support and attention is available. The important thing will be to do so in coordination with the broader base building controls and metering strategy.

In another scenario the best option may be for a building owner to bundle controls and metering upgrades together with base building level energy saving Decarbonization projects. For example, by bundling a multi-tenant controls and submetering upgrade with a Ground Source Heat Pump and Thermal Energy Storage project, some buildings can potentially leverage multiple incentives such as the federal Investment Tax Credit (ITC) and 179D tax deduction to help offset relevant implementation costs.

Controls and Metering in Certification Standards

Green building certifications such as LEED have long underscored the importance of leveraging advanced control systems and collecting whole building and sub-metered energy use data where possible. With LEED v5 on the horizon and an increasing focus in energy categories such as peak load management, system electrification, and grid-interactive buildings, sophisticated controls and granular metering infrastructure will become more and more of an imperative for relevant projects. In particular, owners and tenants in multi-tenant buildings that are planning to pursue LEED certification will benefit from coordinated efforts around high-performance controls and metering design.

Next Steps – Evaluating the Basecase

In order to prepare and implement a successful, modernized controls and metering strategy, buildings should first review their existing operation and infrastructure and consider key questions such as the following:

• Equipment Ownership and Operation: How is building equipment currently managed? (distributed vs. centralized) What would it take to move from a distributed to a centralized ownership and operational model? (i.e. capital investment, impact on lease structure, etc.)

• Equipment Control and Metering Needs: What fuel sources, equipment and building areas will need to be controlled/tracked? What level of data granularity will be needed? Are human resources available to effectively implement and operate the Decarbonized building equipment post retrofit? Who are they?

• Equipment Tie-In: What are the types and condition of existing systems that would tie into the system? What types of upgrades will be required (i.e. hardware, software) to support upgraded controls and increased metering?

• Connectivity Considerations: Will controls and metering systems all be hard-wired? Will some systems be wireless or use hybrid solutions? What types of other interoperability opportunities or risks might exist with the future controls and metering platform and other equipment that will be retained?

These and related considerations are an essential starting point for identifying and implementing a high-performance controls and metering strategy.

Have questions or need help evaluating your building? Contact us to discuss the best strategies for modernizing your operations and optimizing efficiency.

Dallas Terry is the Director of Decarbonization at Sustainable Investment Group (SIG), where he leads the Decarbonization Department, focusing on innovative strategies like energy modeling, embodied carbon assessments, and decarbonization studies. With a strong background in sustainability consulting, Dallas helps clients navigate the path to reducing carbon emissions and meeting regulatory requirements. Passionate about aligning technical solutions with ESG goals, he brings a comprehensive approach to optimizing sustainable building projects.