Triple Bottom Line The Case Study

Transcription

1 T14/S6 Triple Bottom Line Triple Bottom Line The Case Study Mr. Jonathon Spitz Impact Infrastructure August 16, 2017 Tampa Convention Center Tampa, Florida

2 We Face Enormous Challenges 2

3 New Tools + new Thinking = Achievement 3

4 Typical Conversation Project Owner: We need to modernize our building and it must be green otherwise it won t get funded. Designer: OK, great. I have several ideas and I ll get started right away TIME BURNS OFF, then: D: Here are some really great designs and the building will have minimal impact on the environment, too PO: Whoa, how much is that thing gonna cost? D: About the same, maybe slightly higher PO: How much would it cost if all of the green features are removed? Great- do that! D: But? OK! WTH???? 4

5 US Hours Spent in an Office 2016 F T E 290 Billion 8 hrs /day Hours/yr ENERGY EXCHANGE: CONNECT COLLABORATE CONSERVE TAMPA CONVENTION CENTER TAMPA, FLORIDA

6 Doing More Means What? Does it pencil financially? People & Planet s Concerns Is it desirable? Well located? Owner's concerns Tenant s Concerns Is it functional? Will it increase in value? Affordable? ENERGY EXCHANGE: CONNECT COLLABORATE CONSERVE TAMPA CONVENTION CENTER TAMPA, FLORIDA

7 Tools Available OLD TOOLS FINANCIAL MODELS AND PROJECTIONS 3D SPATIAL MODELING ENERGY MODELS INFRASTRUCTURE MODELS PEOPLE AND PLANET (NEW TOOLS) ENERGY EXCHANGE: CONNECT COLLABORATE CONSERVE TAMPA CONVENTION CENTER TAMPA, FLORIDA

8 Triple Bottom Line (TBL) Cost Benefit Analysis (CBA) An evidence-based economic method that combines: Cost-Benefit Analysis (CBA) Determine whether the benefits of a proposed design justifies its costs Consider the gains and losses to all members of the society Value impacts in terms of a single, familiar measurement $$ Weight the relative importance of the different impacts Life Cycle Cost Analysis (LCCA) Estimate present value of life cycle costs, including: CapEx OpEx Replacement costs Residual value at end of life Triple Bottom Line (TBL) Financial (hard dollar, soft dollar) Social (non-cash performance benefits; community benefits) Environmental (avoided environmental impacts)

9 Not All Business Cases and LCCA's are created equally Many, many variables Weather Building Type Local Wages, Utility Costs Social Value Uplift of property values as a result of implementing sustainable and resilient improvements. 9

10 Automate with smart (but transparent!) values Smart Defaults across 7 Categories: Demographic (e.g. population) Economic (e.g. property value) Scientific (e.g. meteorological) Cost (e.g. wastewater rates) Health (e.g. employee asthma) Social (e.g. recreational value) Environmental (e.g. local value of water quality improvement) From Sources Such as:

11 Quantify the total NPV across dozens of metrics Weigh Costs & Benefits Include Social + Environmental Typical Life Cycle Costs PLUS Social & Environmental Social Value of clean water Local air pollution Flood risk 11

12 Prologis Case Study 12

13 Case Study: Who Benefits from a Green Warehouse? International Park of Commerce, California Challenge: How can Prologis prove - to all affected stakeholders - the true benefits of their green building investments? Evaluated: Indoor and outdoor water use reduction using efficient fixtures and landscaping Energy use reductions relative to Title 24 and LEED Volume Difference in trucking miles from using regional materials Indoor environmental quality benefits Additional green space for recreation and ecological benefits

14 Prologis Results Results: The Tenants are the biggest winners. 14

15 Prologis: Stapleton Business Center The risk-adjusted results show the project has a positive value

16 Prologis takes TBL-CBA nationwide Uses TBL-CBA across their entire North American real estate portfolio and intend to use it globally. NEW: To define and refine their design-build specifications for future facilities. EXISTING: Use Social & Environmental results to demonstrate their good citizenship locally. Report results in their annual disclosure to investors

17 Ft Bliss Case Study Replacement Hospital 17

18 Case Study: Fort Bliss Replacement Hospital Site Details Site: 1.1M square foot hospital renovation in El Paso, Texas Client: U.S. Army Corps of Engineers Scope: Evaluated 15 design alternatives considering water scarcity, waste water limitations, solid waste limitations, energy security, and energy independence Result: Identified investments with highest Sustainable ROI, including $3.8M Net Present Value for onsite wastewater reuse 18

19 Case Study: Fort Bliss Results Results For On-Base Wastewater Reuse Option: 19

20 What does USGBC Think about TBL CBA? 2016 Points for using TBL-CBA to inform Design Alternatives 2017 More Points!!!! 20

21 Summary 1. Become fluent in sustainable economics for change! 2. TBL-CBA is an accepted method Integrating TBL-CBA into your workflow is beneficial 3. Doing so improves the likelihood of project funding 4. Earn LEED Points 21

22 T14/S6 Triple Bottom Line U.S. Green Building Council Mr. Brendan Owens USGBC August 16, 2017 Tampa Convention Center Tampa, Florida

23 T14/S6 Triple Bottom Line LEED v4 System Goals 23

24 T14/S6 Triple Bottom Line 24

25 T14/S6 Triple Bottom Line 25

26 T14/S6 Triple Bottom Line 26

27 T14/S6 Triple Bottom Line 27

28 T14/S6 Triple Bottom Line Energy Generation Transmission Distribution Water Rainwater Waste Water Potable Waste Construction Operational Food Availability Sustainability Other Infrastructure Resilience Emergency Response Transport Roads Sea/Air Terminals Mass Transit Landscape Ecosystem Services Biodiversity Habitat Buildings Energy Water Waste Human Experience Information/Telecom People Health and Well Being Social Equity 28

29 T14/S6 Triple Bottom Line Energy - PEER Water Waste - ZWBC Food Transport Parksmart, LEED Transit Landscape - SITES Buildings - LEED Information/Telecom People - LEED and WELL Materials 29

30 T14/S6 Triple Bottom Line Implementing TBL within Federal Government Department of Homeland Security Dr. Teresa R. Pohlman Executive Director, Sustainability and Environmental Programs August 16, 2017 Tampa Convention Center Tampa, Florida

31 DHS Mission

32 DHS Components and Offices 8 Operational Components United States Coast Guard (USCG) Customs and Border Protection (CBP) Citizenship and Immigration Services Ombudsman (CISOMB) Federal Emergency Management Agency (FEMA) Federal Law Enforcement Training Center (FLETC) Transportation Security Administration (TSA) U.S. Immigration and Customs Enforcement (ICE) United States Secret (USSS) Chief Financial Officer (CFO) Civil Rights and Civil Liberties (CRCL) Office of Counternarcotics Enforcement (CNE) Domestic Nuclear Detection Office (DNDO) Executive Secretariat (ESEC) Office of the General Counsel (OGC) Office of Health Affairs (OHA) Office of Inspector General (OIG) Office of Intelligence and Analysis (I&A)Office of Legislative Affairs (OLA) Management (MGMT) National Protection & Programs Directorate (NPPD) Science and Technology (S&T) National Cybersecurity Center (NCSC) Office of Operations Coordination and Planning (OPS) Office of Policy (PLCY) Privacy Office (PRIV) Office of Public Affairs (OPA) United States Citizenship and Immigration Services (USCIS) 32

33 Getting to know DHS Mission: Secure the nation from the many threats we face Guarding against terrorism Securing our borders Enforcing our immigration laws Improving our readiness for, response to and recovery from disasters Maturing and unifying the Department Organization: Major Components U.S. Coast Guard Federal Emergency Management Agency Customs Border Protection Immigration and Customs Enforcement Federal Law Enforcement Training Center National Protection and Programs Directorate U.S Secret Service Transportation Security Administration U.S. Citizenship and Immigration Services Science and Technology Directorate 33

34 Getting to know DHS People: 230,000 Vehicles: 49,174 10,300 are alternative fuel vehicles 280 are hybrid electric Number of Buildings: 14,100 Gross Square Feet of Buildings: 91.5 million Owned 60% GSA/Leased 40% Energy Costs: $400 million Environmental Liabilities: $1028 million 34

35 Mission Resilience The Department of Homeland Security is committed to being a leader in sustainability. Mission Resilience DHS continues to ensure that its operations and actions are carried out in an environmentally, economically, and fiscally sound manner providing DHS Components with outcome-driven assistance from concept to impact. 35

36 DHS Sustainability and Environmental Programs Operates 3 highly technical interactive functions: Environmental Planning/Historic Preservation Energy Environmental/Sustainability 36

37 Mission Resilience Incorporating sustainable practices into the DHS mission conserves energy and natural resources reduces pollution and contamination releases enhances the workplace through less exposure to hazardous materials and chemicals strengthens national security by encouraging energy independence LED CBP Yuma FLETC Cheltenham USCG Baltimore Shipyard 37

38 DHS FY 16 Sustainability Program Results Metric Item FY 2016 Goal (as established in OMB Scorecard reporting) DHS Status Scope 1&2 GHG 26% 33.7% Scope 3 GHG 7% 41.4% Water Intensity 18% 25.1% Energy Intensity 2.5% 3.2% Achieved Goal Working Toward Goal Sustainable Acquisitions 95% 100% Renewable Electricity 10% 10% Clean Energy 10% 6.3% Electronics Stewardship and Data Centers Sustainable Buildings (GSF) EPEAT 95% Power Mgmt 100% End-of-Life 100% EPEAT 99.7% Power Mgmt 100% End-of Life 100% 15% 12.9%

39 Resilience Initiatives Charters the governance and oversight of climate change adaptation and resilience within the Department Published the first ever DHS Directive addressing climate resilience within the Homeland Security mission. Directive : Climate Resilience, July 22, 2016 Acknowledges the direct link between actions related to climate resilience and national security and articulates the Department's policy to integrate climate resilience into strategic planning, risk management frameworks, and continuity programs. Representatives participated and provided key remarks at the first White House Roundtable on Equitable Disaster Planning. FEMA partnered with the EPA, NY State Department of State, Suffolk County, and Nassau County to form the Long Island Smart Growth Resiliency Partnership. The Partnership was developed to provide long-term assistance to impacted communities and implement recovery efforts to create sustainable and resilient communities. DHS via FEMA issued a Notice of Proposed Rulemaking (NPRM) to implement EO 13690, Establishing a Federal Flood Risk Management Standard and a Process for Further Soliciting and Considering Stakeholder Input (January 2015), and the Federal Flood Risk Management Standard. Strengthening Climate Adaptation Planning in Fiscal Year 2016 and Beyond goals were achieved in FY2016: Increased the adoption of disaster-resistant building codes in communities with high risk of earthquake, flood, and high winds. Increased the percentage of U.S. population covered by planned climate mitigation. Increased the percentage of states with the FEMA Threat and Hazard Identification and Risk Assessment (THIRA). Conducted three national workshops for States to help improve THIRA quality. Developed a benefit cost toolkit that included ecosystem services under Hazard Mitigation Assistance (HMA) Programs. Published a Community- Level Climate and Hazard Resilience Indicators guide. DHS launched the Climate Change and Health Disaster Resilience Workgroup. In response, FEMA launched a case study project titled, Creating More Equitable Post-Disaster Outcomes by Addressing the Needs of At-Risk Populations: A Conversation among FEMA Programs.

40 DHS Resilience & Energy Projects Goal: $48 million 2013 Achieved: $54 million Goal: $72 million 2016 $83 million 2017 Goal: Additional $9 million Achieved: $5.5 million ++ Goal: Additional $9 million 2018 Achieved: In progress!

41 DHS Resilience & Energy Projects FEMA Solar Photovoltaic Analysis USCG attributes ~30% of the 38% reduction in EUI directly to Alt financed projects

42 DHS Critical Infrastructure Critical infrastructures compose the assets, systems, and networks so vital to the United States that their incapacitation or destruction would have a debilitating effect on security, national economic security, national public health and/or safety.

43 DHS Critical Infrastructure 16 U.S. critical infrastructure sectors have been defined in the Presidential Policy Directive 21 (PPD-21), as: 1. Chemical 2. Communications 3. Energy 4. Food and Agriculture 5. Government Facilities 6. Information Technology 7. Transportation Systems 8. Commercial Facilities 9. Critical Manufacturing 10. Water & Wastewater Systems 11. Dams 12. Emergency Systems 13. Healthcare and Public Health 14. Defense Industrial Base 15. Financial Services 16. Nuclear Reactors, Materials, and Waste

44 Energy Sector Risks Risks Cybersecurity Physical Security and Resilience Natural Disasters and Climate Resilience Aging Infrastructure and Need for Investment

45 Critical Infrastructure Community Individual citizens Federal Private companies State Tribal and territorial governments Local government

46 Closing Our critical infrastructure and what we are doing right now in sustainability, environment, and energy are supporting the business case Triple Bottom Line includes critical infrastructure Programs and tools out there to assist us with the TBL should maximize all