Human activities such as burning coal and fossil fuels have led to increases of roughly 90% in carbon dioxide emissions and 78% in greenhouse gas emissions globally since 1970. As of 2014, the United States is responsible for nearly 15% of that CO2. The five highest polluting sectors are energy production (grid), land-use (deforestation, agriculture), transportation, industrial activities...and buildings.

Across the globe, the above statistics are widely understood. The fact that it is our responsibility to solve and clean up the problem is also widely understood. Local, federal, and international energy policies have aligned with deep decarbonization targets by 2050. In an effort to meet these goals, collaborative programs, coalitions, and think tanks are energized, creating coordinated solutions across the private sectors. 

These coordinated efforts along with meaningful change, are fundamental to adopting a paradigm shift. In this article, we hope to offer a clear understanding of what decarbonization is, and a strong business case for why becoming part of the solution works, no matter where you place the value.

Defining Decarbonization

Decarbonization is the process of removing carbon. The act of decarbonization, or to decarbonize is to reduce or eliminate greenhouse gas emissions in order to address atmospheric pollution and meet climate goals. This is the basis of the decarbonized economy.

The Decarbonized Economy

Mobilized by climate policy, a decarbonized or low-carbon economy uses clean power sources and practices to lower greenhouse gases, specifically carbon dioxide output into the atmosphere. The need to deploy clean energy strategies with speed and to scale, stimulates research, innovation, job creation, and economic growth. Additionally, a decarbonized economy prioritizes ecosystem resilience, including not only biodiversity but humanitarian issues. 

What are the benefits of a decarbonized US economy, specifically? The World Resource Institute compiled data that shows clear economic benefits to decarbonization.

  1. It’s cheaper to save the planet than it is to ruin it. Low-carbon technologies have become more efficient and affordable compared to fossil fuels. 
  2. US clean energy investment and deployment are creating approximately twice as many jobs as those in fossil fuels. 
  3. Net-zero means net-savings for the US. Despite the trillions in spending projected for 2050 emissions targets, energy revenues are greater. Morgan Stanley Research released data on how decarbonization will strengthen the economy, as well as listed their 5 recommended investment strategies.

Strategies for Decarbonization

So how are we going to do this? The strategies to achieve deep decarbonization nationally and globally are wide and well, deep. For example reforestation, carbon capture, family planning are all ways to offset and reduce emissions. For our purposes, let’s focus on our business: strategies for decarbonizing buildings. 

Building decarbonization is segmented into embodied carbon, which in simple terms are the cumulative emissions from construction and operational carbon which are the emissions from the use of a building. The primary strategies in operational decarbonization are:

  1. Decarbonize the grid. The grid is the biggest culprit of GHG emissions. Our blog about SCE rate increases spotlights how our aging infrastructure is sparking hazardous weather events, and how utilities are depending on their customers to help upgrade and electrify the grid with clean, renewable energy. 
  2. Electrification of buildings. Switching from fossil fuels (burning natural gas) to electric is another key component to moving the needle. So much so that new building codes are being implemented in certain cities, like Berkeley, CA, banning the installation of natural gas lines. Fuel switching incentives, coming in 2021 for multi-family and single family homes, will be another tool, enabling customers to move from carbon-emitting gas appliances to cleaner electric ones.
  3. Self-generation. Solar, battery storage, and other scalable renewables can move you to net-zero the moment it goes live. 
  4. Retrofit to cleaner, next-gen units. The implementation of green technology is pivotal to the progress that needs to be made. One household, one building at a time truly does make the difference.

These strategies are mainly focused on operational decarbonization; however, it’s important to be embodied and operational inclusive. Even with retrofits to existing buildings, coordinating design, new technologies, methods, and deeper savings through synergistic measures will increase the value and efficacy of the project.

Climate Transition: Environmental Effects of Decarbonization

Globally, if we can accomplish this mid-century deep decarbonization we will make strides in restoring our vital ecosystems for a millennium. If as a nation we can overcome the barriers we face to take action, we can, year by year reverse the climate crisis we already experience through increased and costly events such as wildfires, flooding, hurricanes, pandemics, and heat waves. Climate change is interconnected with human development as well. Stabilizing temperatures stabilize our crops and food supply chain. Energy efficiency benefits everyone, but especially low-income families. Making cleaner, low-cost energy available in poorer communities ensures energy security and access to healthier environments inside homes and neighborhoods. 

Your Path to Decarbonization

Green EconoME founder and CEO, Marika Erdely is invested in getting customers to their decarbonization goals and inspired by getting to net-zero. “The ability to eliminate gas in a building, replace it with electrical equipment, add solar PV, and a storage battery and then go off the grid while also reducing ongoing operating costs is exciting. Electrical costs will continue to rise, but if we are able to add the generation and storage factor to the building, we will be able to offset these increases in costs. To get to a net-zero carbon building would be fantastic!” Marika speaks in detail on this topic on the Building the Future podcast. Multi-family residential is one good example of a property type where we see opportunity for deep savings and impact on the community. Paired with the SoCalREN incentive program, decarbonization of the building and providing low-cost energy to each tenant is achievable. 

Marika is also Co-Chair of the New and Existing Building Committee of the USGBC, LA Chapter, Decarb Committee. A collaboration of Los Angeles’ energy leaders, their mission is to transform the way buildings and communities are designed, built, and operated. Schedule a personal Q&A to explore and get started on becoming part of the solution.

Resilience, public health, mental health, collaboration between the public and private sectors, science-based strategies, equity, and trust. Are we talking about the current pandemic or the Fitwel Certification System? We are talking about both. The groundswell around health and wellness at the workplace had taken hold before COVID. Now, a clear set of standards and protocols to keep people healthy is required to open doors again.

Fitwel® is the World's Leading Certification System Committed to Building Health for All™. Using evidence-based scientific research, the Fitwel system is a series of standards and strategies developed to optimize building design and operations, in support of the health and well-being of its occupants. The program is run by the Center for Active Design (CfAD), in close collaboration with the U.S. Centers for Disease Control and Prevention (CDC), and the U.S. General Services Administration (GSA).

Why Fitwel certification matters

As we reopen, occupant trust and safety are paramount. Fitwel certification makes transparent the strategies used to maximize their well-being. For property stakeholders, Fitwel has recently introduced the Fitwel Viral Response Module, an annual certification of policies and protocols informed by the latest public health research on mitigating the spread of infectious diseases. It offers a comprehensive methodology critical to ongoing response. 

Global pandemic aside, wellness is an important differentiator to top companies and those they employ. Talent is attracted to healthy and inspired spaces. When you provide an environment with a sense of place, amenities that cater to a healthier lifestyle, and a building with sustainable design, there are far-reaching effects. Inside, you have thriving tenants who stick. Outside, you create a positive impact on the overall wellbeing of people and the environment. When people can bike to work, emissions are reduced. When there is access to healthy food onsite, people do not get in their cars for lunch. When outdoor spaces are available, both physical and mental health improve. 

This is not conceptual. Research used by the Fitwel system shows a direct correlation between workplace design and occupant productivity and health. Temperature, air quality, lighting, and noise conditions are all factors toward performance and employee well-being. With an estimated 90% of a company's capital being its people, productivity and absenteeism matter. Additionally, disease prevention and good health can result in a positive return on healthcare spending. When a company occupies a building designed with the same goals in mind, their healthcare dollars go exponentially further.

What’s in it for me?

Investing in wellness is a sound long-term play for owners. The rising workforce is vested. According to a 2018 Global Wellness Institute report, global wellness is a $4.5 trillion economy, with a 6.4% annual growth. Workplace Wellness is a key sector, projected to grow to $66 billion in 2022. Conversely, 2018 research from the Integrated Benefits Institute (IBI), shows that illness-related lost productivity costs U.S. employers $530 billion per year. 

Used in tandem with efficiency and sustainability certifications like ENERGY STAR®, LEED, and BREEAM, you are investing in the full spectrum of building health and sustainability. FItwel extends beyond the building, to the people. It also extends beyond the commercial site, to community development. Whatever your discipline, Green EconoME can manage and deliver the full spectrum of certifications for your project.

To learn more about Fitwel for your property or community, contact us at  info@greeneconome.com or (424) 422–9696.

“The increased risk of catastrophic wildfires poses an immediate threat to communities and properties throughout the state…[The state’s] electrical corporations must invest in hardening of the state’s electrical infrastructure and vegetation management to reduce the risk of catastrophic wildfires.” Kevin Payne, Southern California Edison president and chief CEO, addressed head-on in his General Rate Case testimony the primary issue facing his company and other investor-owned utilities (IOUs) across the American West. Wildfires are an ongoing crisis, and energy companies are feeling the heat. SCE is next up for revenue increase approval by the California Public Utilities Commission (CPUC), and their request is in the billions. Although this does mean monthly rate increases to customers, it also signals something larger: the need for end-users to become part of the solution.

The General Rate Case

General Rate Cases (GRCs), are proceedings made by utility companies to the Public Utilities Commission to address the costs of operating and maintaining the utility system and the distribution of those costs among customer groups. Cases are made every three to four years. Although all providers are required to do this, the three largest IOUs bear the most significant impact. In California, San Diego Gas & Electric and Pacific Gas & Electric have already submitted their applications for changes beginning in 2019 and 2020. SCE is in the final phase and approval is expected in early 2021.

The cost of power

SCE’s request represents a $1.295 billion, or 20.1% revenue increase in 2021. Increases for 2022 and 2023 are $366.5 and $534.2 million respectively. Although percentages vary across customer groups, this translates to approximately two cents more, per kWh in 2021. PG&E and SDG&E were not too far behind. PG&E asked for a $1.058 billion or 12.4% revenue hike for 2020. Rolling in third was SDG&E at a combined $2.199 billion revenue requirement, or an 11% increase over four years beginning in 2019.

What is it for?

The key reasons for SCE’s proposed increase are stated as:

  1. Reducing the risk of wildfires to keep the electric grid safe for the public and for SCE workers
  2. Reinforcing grid reliability and grid resiliency in case of emergency
  3. Improving customer service and communication, integrating distributed energy resources, and offering customers more choices to meet their needs

Top of the list, SCE is asking for more funding to help bolster wildfire prevention, risk monitoring, and emergency response. They will do this by adding new and enhanced safety measures like HD cameras and weather stations to detect ignitions. They will increase vegetation management, by continually removing potential fuel like branches and hazardous trees from power lines. They will perform system hardening or fixing bare wires to increase resilience and help further reduce wildfire risk.

Next, is SCE’s plan to upgrade technology and infrastructure to further grid safety, and modernization. Among other things, this means SCE still struggles to keep the power on. Urged by California’s clean energy reform, SCE continues to prioritize and invest in clean energy generation from customers connected to the grid. Stated as part of this, is integrating into the grid Distributed Energy Resources (DERs). Edison describes DERs as, “small scale local resources, often installed at a customer’s home or business, [that] can help meet California’s greenhouse gas reduction goals, help customers reduce electricity use and support grid reliability.” Their robust programs and incentives provide compelling opportunities to building owners throughout California.

The case for clean and efficient energy

If you have already implemented or are considering self-generation like solar, and energy storage, here are some of the programs in place. Net Energy Metering, provides billing credits for surplus energy you “sell back” to the grid. Solar Power on Warehouse Rooftops program, is exactly what it sounds like. Providing your warehouse rooftop(s) as a sort of solar farm, for which you will both use the power and get paid for the surplus kWh. SOMAH is a community program for multi-family low-income housing, which offsets tenant cost and implements cleaner renewable energy. SGIP and green energy strategies are programs that provide clean energy solutions and help finance the cost of installation. These are only some of the opportunities to make self-generation easier to light up and quicker to pay back. 

Outside of self-generation, energy efficiency has always been a proven path to reducing your use and cost while qualifying for incentives. For example, enrolling in an energy solutions incentive program like Demand Response, or Express Solutions, may not only offset future rate increases to your site, but qualify you for further discounts, financing, or credits. The best part is that you chose the efficiency modalities that best suit your needs. For effective retrofit measures, visit our Energy Efficiency Retrofits page. Green EconoME’s work at Warner View Center spotlights the impact of integrating newer technologies and self-generation at a single site.  

Fires rage on across the western United States, holding up what seems to be a promise for climate change. If we do nothing, more extreme weather conditions and events will be our fearsome reality. The multi-faceted issue which is met with even more refracting opinions does hold one fact to be true. Wildfires come at an enormous expense and are taxing an aging infrastructure. If this isn’t the tipping point of real change in our behaviors and long-term investments into solutions, how will we be paying for it in GRC cycles to come? 

Visit the CPUC website to read the complete SCE application or to submit public comment. When you are ready to explore energy efficiency or self-generation options for your property, please contact us.

It’s never too late to get Energy Star Certified! Irvin Grant, a 101 year-old Building Owner in LA recently ENERGY STAR Certified his building with the help of Green EconoME. Irvin built Brentwood Terrace Condominiums, located at 825 S. Gretna Green Way, in the 1960s with his sister. Its eye-catching rounded front has made this building a landmark in the Brentwood neighborhood. 

ENERGY STAR is the government-backed, energy efficiency ranking system. For eligible buildings, the tool calculates an ENERGY STAR score on a scale from 1 to 100.  For a building to be labeled “ENERGY STAR” certified, it must score a 75 or above. Studies find that ENERGY STAR certified buildings command a sales price and rental rate premium of up to 16%.

Irvin’s building received a score of 93, determined by the Benchmarking Report that Green EconoME generated for the building to be in compliance with Los Angeles’ Existing Buildings Energy & Water Efficiency (EBEWE) Ordinance. With Green EconoME’s guidance, Irvin pursued the ENERGY STAR certification in order to be exempt from Phase II of EBEWE, which requires an ASHRAE Level 2 Audit and Retro-Commissioning.

To learn more about EBEWE, exemptions, or other city/state Energy Disclosure Laws visit Our Services.

To learn more about ENERGY STAR Certification click here.

Or feel free to contact us: info@greeneconome.com or 818-681-5750.