Sit down with Green Econome's own Marika Erdely and the inimitable Kate Shoemaker of Assured Partners and CREW Orange County, and enjoy this episode of "Behind The Logo".

In this fun and candid conversation, Kate and Marika discuss everything from the "Need to Do Initiative" of energy efficiency and sustainability in CRE, Arnold Schwarzenegger, networking scaries, and building a better future for all. 

As part of CREW Network, the industry’s premier business organization, CREW Orange County transforms the commercial real estate industry by advancing women globally. CREW Network’s membership of 12,000 professionals in over 75 major global markets represents all aspects of commercial real estate—providing our members with direct access to real estate professionals across all geographies and disciplines.

Head over to CREW Orange County to explore their mission, community, and opportunities to connect.

Bisnow Bay Area ESG & Sustainability Summit

Tuesday, April 16th
8:00 am - 11:15 am

The Marker Hotel San Francisco
501 Geary St
San Francisco CA 94102

Green Econome will be in San Francisco! Please join us at The Marker Hotel San Francisco for the Bisnow Bay Area ESG & Sustainability Summit. Green Econome CEO, Marika Erdely will be joining a stellar roster of panelists discussing:

  • The Evolving Landscape of ESG Initiatives
  • Tracking and Streamlining the Process
  • Regulations, and Green Financing

Register below and enjoy 20% off of your ticket! Use code: E20jerorUS

In this episode of The Commercial Real Estate Report podcast, Chris Berg of Abernathey Holdings and Green Econome Founder and CEO, Marika Erdely take a deep dive into:

  • Solar and clean energy requirements in CA
  • The positive impacts of ESG
  • Challenges facing CRE and building performance
  • Financial incentives and the tax benefits of the Inflation Reduction Act

The Commercial Real Estate Report is dedicated to bringing you in-depth analyses, market trends, and expert opinions from the world of commercial real estate. Whether you're an investor, a developer, or simply someone interested in the dynamics of commercial properties, they've got you covered. Find them on YouTube @TheCommercialRealEstate. Listen, share, subscribe.

CREW Orange County and Green Econome present Connections 2024 Outlook Lunch and Learn

Please join us on Wednesday, January 10, 2024, for lunch, learning, and networking at Tangram Interiors' beautiful space in Newport Beach. Green Econome CEO, Marika Erdely will be discussing:

  • What you need to know about energy and water disclosure laws for existing buildings.
  • Critical insight into ESG and its impact on commercial real estate.
  • Available utility incentives and tax benefits of the Inflation Reduction Act for new development, renovations, and efficiency upgrades.

Space is limited. Registration is required and closes on January 9, 2024 at noon. We hope to see you there!

CREW Connections 2024 Outlook Lunch and Learn

Wednesday, January 10th
12:00 pm - 1:00 pm

Tangram Interiors
1375 Dove Street, Suite 300
Newport Beach, CA 92660

During National Clean Energy Action Month, take steps toward climate action for your commercial real estate.

Since our inception, the U.S. EPA’s ENERGY STAR® programs have been at the core of Green Econome’s services to help our customers save energy, save money, and protect the planet. As a commercial real estate owner or manager, you have the power to make a positive impact on the environment and your bottom line. October is National Clean Energy Action Month, a perfect time to take action and implement energy-efficient practices in your buildings. One of the best ways to start is through ENERGY STAR benchmarking and certification.

ENERGY STAR is a program by the U.S. Environmental Protection Agency (EPA) that helps businesses and individuals save money and protect the environment by promoting energy-efficient products and practices. Through benchmarking, you can compare your building's energy performance to similar buildings and identify areas for improvement. Certification, on the other hand, recognizes buildings that meet strict energy efficiency standards and have lower energy costs and greenhouse gas (GHG) emissions. By using ENERGY STAR benchmarking and certification, you can reap numerous benefits for your buildings and your business.

Top 5 Reasons for Clean Energy Action

Comply with Local and State Energy Benchmarking and Building Performance Policy

Cities and states nationwide are adopting climate action plans, which in many cases include annual ENERGY STAR benchmarking to track energy and water use and building performance standards to reduce GHG emissions across their existing building stock. Often ENERGY STAR certification is an exemption from having to perform costly audits, retro-commissioning, and efficiency improvements.

Lower Energy Costs

Energy-efficient buildings consume less energy and therefore have lower energy bills. According to ENERGY STAR, certified buildings use 35% less energy and emit 35% less carbon dioxide than typical buildings. By benchmarking your building's energy performance, you can identify ways to reduce energy waste and save money in the long run.

Higher Property Value

ENERGY STAR certification is a badge of honor that can increase your building's value and appeal to potential tenants or buyers. Certified buildings are more attractive to environmentally conscious tenants who prefer to work or live in sustainable spaces. Moreover, building certifications are being used as ESG targets and requirements by tenant companies, REITs, and investment firms.

Improved Indoor Comfort

Energy-efficient buildings are not only good for the environment and your wallet, but also for the health and comfort of occupants. By reducing energy waste, you can improve indoor air quality, reduce noise levels, and enhance thermal comfort. This can result in higher productivity, better health outcomes, and happier occupants.

Positive Public Relations

Implementing energy-efficient practices and achieving ENERGY STAR certification can improve your business's public image and reputation. You can promote your achievements to your stakeholders, customers, and the media, and showcase your commitment to sustainability and energy conservation.

Join us this month in celebrating the progress made, and more importantly, taking steps to further the clean energy transition needed to sustain our future. Take a moment, gather your team, and discuss with purpose what changes and goals you can commit to in 2024 and beyond. When you have the vision, take action. Call (424) 422-9696 or Contact Us. Talk to you soon!

About Green Econome

Green Econome is a woman-owned, small business providing energy and water efficiency compliance, consulting, and construction services for commercial real estate. Our Los Angeles-based team of licensed and credentialed professionals takes an integrated approach to finding efficiency solutions that positively affect market valuations, reduce environmental impact, meet ESG and sustainability goals, and ensure regulatory compliance.

Green Econome’s CEO, Marika Erdely, sat down with CREtech Climate Podcast host, Michael Beckerman, to share insights on:

  • Steering the Commercial Real Estate industry to reduce the carbon emissions of existing buildings.
  • Challenges and solutions to sourcing funding for climate change investments.

The CREtech Climate Cast is a podcast series devoted to educating, inspiring, and leading the built environment to address the world’s biggest crisis - climate change. Tune in to in-depth conversations with the leading real estate and tech innovators from across the globe with CREtech Climate CEO, Michael Beckerman.

At Green EconoME we are passionate about saving building owners and operators energy, on their energy costs and maximizing their capital investments. That’s why we cringe when people tell us they finished a project and didn’t take advantage of any of the many available utility incentives. Right now, utility incentives and tax benefits for energy efficiency and clean energy generation are the vehicle that governments are using to mobilize clean energy goals. What motivates you to make improvements to your commercial real estate is yours. What matters to us is that we each benefit from the actions we take, and that those actions hold long term value.

Utility Incentives 101

Utility incentives are financial and sometimes technical support available to specified projects or equipment. They can be offered by the utility directly, a program administrator, or are publicly administered programs. This year, there has been a shift toward centralizing some incentives and programs to be available across California, rather than at the regional utility level. This shift marks California’s response to clean energy mandates and helps distribute funds equitably to all utility customers. It creates a bigger funnel for end-user incentives and rebates to assist with efficiency, renewables, resilience, EV infrastructure, and building decarbonization. Confused? Call us.

Our Top Three California Energy Saving Incentives

Aside from not knowing about available incentives, another barrier simply is that there are so many options, decision-making can be difficult. Here are some key programs that, from our experience to date, are easy to manage, pay well, and have a stable stream of funding:

  • LADWP Commercial Lighting Incentive Program (CLIP)This is offered through LADWP directly to its qualifying business customers. CLIP is for lighting retrofit projects where the building has an annual average monthly electrical demand (kW) above 200 kilowatts. Every efficiency project Green EconoME has completed has included LED lighting retrofits. We leverage this incentive where we can, and consistently see on average 30% savings on the total project cost.
  • SoCalREN Multifamily Program (SCR)The County of Los Angeles administers the Southern California Regional Energy Network (SoCalREN) programs. The SoCalREN offers financial assistance to public agencies and multifamily residential property owners for energy efficiency retrofits impacting both electric and gas use. Green EconoME has served as a consultant and contractor on several SCR multifamily retrofit projects over the past 2 years. See our Case Studies for results. We have seen energy savings exceed program requirements, and have been awarded further program credits.
  • California Energy Design Assistance (CEDA) ProgramCalifornia Energy Design Assistance provides complimentary energy design assistance and financial incentives for commercial, public, industrial, agriculture, and high-rise multifamily new construction projects, or major alterations that are in their early design phases. The goal of the program is for buildings to be designed efficiently from the start, thereby realizing lifelong savings and less environmental impact. CEDA helps the design team identify the most energy efficient strategies through custom energy modeling, then helps the owner implement those measures through incentives to reduce cost. CEDA, along with LADWP’s Zero By Design (ZBD) understands that every team is different and allows room for the professionals you bring to the project to complete some or all of the work, as long as it meets set criteria. 

Tax Benefits 

A powerful 1-2 punch is combining utility incentives with tax deductions like Section 179D, and the CARES Act Qualified Improvement Property (QIP), which allows for accelerated depreciation, while the solar tax credit (ITC) is a full credit off the owner’s tax liability. A clean energy future, regardless of how we feel about it, is the direction California is already moving. Local, state, and federal policy around clean grid infrastructure and lowering carbon emissions can strain property owners, which is why these robust incentives are available, being widely funded, and introduced at a rapid pace. Green EconoME has been helping clients navigate and manage available incentives for their projects, ensuring the richest paybacks possible. Schedule a meeting to discuss your current or future projects.

Green EconoME is a full-service provider. Our team of multidisciplinary, qualified professionals can fulfill your 1-5-10 and are versed in the latest incentive programs and financing options. It is what our integrated approach is based on. Whether your goal is to simply comply or to fulfill ESG strategies, Green EconoME analyzes energy use, and existing conditions to provide solutions that reduce operating costs, and increase the value of your property. Contact us with questions or for pricing. Chula Vista, we are so excited for the health and future of your community, congratulations! We can’t wait to get started.

Discover the opportunity for Commercial Real Estate in corporate accountability.

ESG, or Environmental, Social, and Governance is a set of standards used to evaluate an organization or community’s commitment to sustainable (Environmental), ethical (Social) practices, and outlines how those goals will be measured and achieved (Governance). Driven in large part by the boom of ESG or sustainable investing, it is important to look at the wider implications this has, specifically for commercial real estate.

You don’t have to be courting investors, or publicly traded to implement ESG strategies. The bottom line is this is the direction the world is moving. From our perspective, here are four important reasons to consider real estate ESG:

 

  • Altruism and profitability are not mutually exclusive
    Operating a more environmentally friendly and equitable company/building reduces waste, cuts cost, and increases efficiency, according to 2019 McKinsey & Company Research. As an energy efficiency consulting and construction firm, this is top of the list for Green EconoME when it comes to reasons to invest in ESG.
  • Attract top talent & tenants
    Unless you plan to go the way of the dinosaur, formalizing your corporate values and commitments and applying them to your assets will keep you competitive. Make no mistake, prioritizing ESG is a choice, just like the one your prospective tenant, lender, future employee, or buyer will make when considering you and your properties.
  • Plan ahead: policy and the role of ESG
    Globally and locally, regulation is expanding to meet science-based goals for climate action and social responsibility. While ESG or related benchmark reporting isn’t yet mandatory, just like ENERGY STAR(r) benchmarking, ESG data is becoming a leading performance indicator for real estate, and inevitably will become a standardized source of data for government-based carbon reduction targets or other asset assessments.
  • Data in, reporting easy
    The modalities and data collected for ESG measurement are being integrated into risk assessment, financial reporting, and other annual real estate-related requirements. ESG is proving to be a reliable source for centralized data collection that serves the purpose of many. Think of the ways this can increase the efficiency of your organization.

As much as ESG is seen as a trend, it is so because it is at the tipping point of a new paradigm defining this generation and generations to come. It is a framework to approach this decade of action that we are in. The space between energy efficiency, the main business model for Green EconoME, sustainability, and carbon reduction is growing closer, rapidly. Accounting for the impact of your business on its community and the value of who makes it hum is not only responsibility, it's economic success. If you are ready to start your ESG journey, or if you have more questions about ESG, please reach out to Green EconoME.

With the Senate passing the $1.2 trillion infrastructure bill, it is apparent that there is a collective vision of redefining and modernizing our built environment. There is a call to action on how we adapt to meet the needs of future generations. We are reeling with the long-term domino effects of urban sprawl. Socioeconomic inequality, poor building design, limited reliable public transportation, and a decline in public health has brought us to a tipping point. We must prepare to revitalize our cities, retrofit our existing buildings with energy-efficient measures, and reconstruct our transportation networks.

Cleaning Up Our Existing Buildings

The existing building sector is responsible for 29% of GHG emissions, with 40% coming from inefficient HVAC systems. If buildings in Los Angeles are expected to reach net-zero carbon by 2050 as a part of the C40 pledge, there needs to be immediate action. Building systems – electrical, lighting, heating, ventilation, and air-conditioning must be retrofitted to the highest energy efficiency standards. Or better yet - break the ceiling on them.

Government subsidies and utility incentive programs need to be more accessible to building owners so they can invest in on-site power generation for their buildings, such as solar PV and batteries. We can then contribute clean energy to our outdated electrical grid and create the demand for green jobs. While we have the innovative technologies that can support such a system, there also needs to be innovative policy reform that will build these self-sufficient power systems to be scaled to the neighborhood level.

Another upgrade that building owners and citizens benefit from is the installation of a cool roof, which reflects sunlight and absorbs less heat than traditional asphalt shingles. Urban heat islands caused by non-reflective material can cause the ambient temperatures to be artificially elevated by more than 10 degrees in our cities. Dense concentrations of pavement from streets, parking lots, and roofs absorb direct heat, thereby increasing the HVAC usage and exacerbating air pollution, contributing to the poor air quality present in high-density urban areas.

Access For All

Cities thrive when they are made of well-connected neighborhoods, with reliable transit, safe bike paths, and sidewalks made for the pedestrian.

In addition to constructing sustainable buildings, we need to construct smart buildings. Buildings integrated into their surrounding streets through mixed-use design, incorporate a balanced mix of institutional uses that stimulate local economies and increase the use of public services.

There needs to be a push for creating smart circulation networks within cities and neighborhoods that incentivizes walking, biking, and public transportation. This can only be accomplished if it is less challenging to alter zoning ordinances, urban growth boundaries, and rate of growth controls. Through smart growth planning, we can adapt to our changing environment and effectively prepare for a growing population. Transportation is a primary culprit in the progression of climate change. It accounts for 29%of all greenhouse gases in the United States, and it is also one of the fastest-growing emission sectors. Leapfrog development patterns make driving even short distances necessary, due to the extensive lengths of blocks, architectural design of shopping centers, and the extensive parking requirements required to support vehicles.

One of the most powerful statements I have heard is “frequency = freedom”. The frequency of a reliable bus, light rail, subway, gives its citizens the freedom to go where they want and at whatever time they need to. It is both unsustainable and unrealistic to expect equality in a city where every citizen needs their own automobile to get to their next destination.

Becoming a Pioneer of Change

It is vital that we construct an equitable environment for all, and create space for opportunity, growth, and city-wide resiliency. It is our responsibility to meet the needs of future generations and be the leaders of innovative strategies that respond to our climate crisis. Buildings are the foundation of cities. They are a place where people work, create, and collaborate to make the impactful decisions that design our future environment. We need existing and future building owners to take responsibility for their building’s carbon footprint and be held accountable to make responsible decisions in their building operations.

How do we galvanize a community to be the pioneers of an environmentally equitable city through decarbonization and smart growth planning? We need to make citizens and building owners aware of how crucial buildings are in reversing climate change, cleaning our air, and the potential economic savings that come from a carbon-neutral building. Cities do this by working directly with building owners, engaging in public outreach, and being educators.

Mandy Reinhart, LEED AP Neighborhood Development, Fitwel Ambassador, has earned her BS in Environmental Sciences with a Minor in Sustainability. She is passionate about urban planning and studying neighborhood design. As Assistant Project Manager at Green EconoME, Mandy can be found working with clients out in the field, moving their efficiency goals forward.

Los Angeles Existing Buildings Energy and Water Efficiency Ordinance (EBEWE): Phase II – What to Expect

If your building is a covered building and ≥20,000 sq. ft. (a.k.a. needs to comply with EBEWE), then you should have a few years of ENERGY STAR benchmarking under your belt. If not, stop reading and call us immediately at (424) 422–9696! In addition to your annual benchmarking, every five years you are required to show that you have either maintained a high-performing building or are taking steps to become one. Our job is to keep you informed, efficient and in compliance. Your job, when it comes to Phase II, is to make sure you have an efficiency budget in place and enough time to comply by your unique due date.

Below, we’ve outlined the program and Phase II compliance. We’ve also included an infographic for you visual learners, and some tips to comply:

EBEWE Program Summary

Local Policy: Los Angeles’ Green New Deal

Phase I Benchmarking Report: Due by June 1, annually

Phase II Performance Report: Due by December 1, every five-years based on the last digit of your LADBS Building ID

Program Fees: LADBS registration fee + surcharge for benchmarking is $66.41 / building / year, and $183 per audit/RCx confirmation submittal (subject to change)

The EBEWE Phase II Requirements

For Phase II, Building owners must either complete an ASHRAE Level II audit and retro-commissioning (RCx) OR meet one of the exemptions noted below before their compliance due date, which is determined by the last digit of the building’s LADBS Building ID.

https://www.betterbuildingsla.com/_images/content/EBEWE_Ordinance_Brochure.pdf

Prescriptive Path

a) ASHRAE Level II Audit
The in-depth identification and documentation of a building’s energy and water-use equipment. Audits examine existing conditions to pinpoint potential areas of improvement for energy and water efficiency. Must meet or exceed ASHRAE Level II standards.

b) Retro-commissioning (RCx)
RCx is the re-tuning and maintenance of existing systems (energy and water). Your ASHRAE Level II audit will list recommended RCx measures. It will be important to have an implementation plan and budget in place prior to your due date.

Performance Path

Buildings that do not have to go through an Energy Audit and Retro-commissioning qualify for one of the following exemptions:

  1. ENERGY STAR Certification: The building has received this certification from the EPA for the year of the building’s compliance due date, or 2 of the 3 years prior.
  2. For buildings not eligible to receive an ENERGY STAR score, the building must perform 25% better than the national median of similar building types. This data is available through your benchmarking reporting.
  3. The building has reduced its Source Energy Use Intensity (EUI) by 15% when compared to the five years before a building’s compliance due date.
  4. Buildings that do not have a central cooling system must retrofit four of six prescribed energy efficiency measures noted in the EBEWE guidelines (available upon request).

Water Exemption to the Audit and Retro-commissioning:

Buildings that meet one of the below exemptions do not have to go through a Water Audit and RCx:

  1. The building has reduced its water use intensity by at least 20% when compared to the five years prior to the building’s compliance due date.
  2. Buildings that do not have a central cooling system must retrofit two of three prescribed water efficiency measures noted in the EBEWE guidelines (available upon request).
  3. The building’s water use conforms to the LA Municipal and Title 24 Code in effect at any time during the five-year compliance cycle.
  4. The building is new and has been occupied for less than five years from its occupancy date based on the Temporary or final Certificate of Occupancy.

*All exemptions must be certified by, or performed under the supervision of, a California licensed architect or engineer.

Know the Facts: Compliance Tips

  • Don’t be fooled into believing your building MUST receive an audit to comply. Not all buildings need to be audited. The price of an ASHRAE Level II audit can be significantly higher than available exemptions, so make sure you are being advised on the most efficient and cost-effective Phase II path to compliance for your building(s).
  • Performance metrics rely on twelve months of actual energy usage and information about the operations and physical characteristics of the building’s type and use. If this information is estimated or defaulted in your benchmarking report, the metrics will not be correct. Make sure your building has been accurately benchmarked.
  • As you see, this isn’t something that can be done quickly, or for free. If you need more information on creating a budget or financing options, call us.
  • Cities throughout the state (and country for that matter), also have local energy efficiency policy. If you have buildings outside of LA, make sure you are in compliance by checking our 2021 Guide.

As part of Green EconoME’s compliance services, we offer a consultation on the report's results, which includes an explanation and recommendations for energy efficiency improvements and how to meet EBEWE Phase II compliance. We will always make recommendations in the best interest of your building, budget and efficiency priorities.

Contact Green EconoME to meet your compliance requirements.