Modest Investments with Big Global Impact | P2S
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Modest Investments with
Big Global Impact:
Kent Peterson on Cost-Effective
Decarbonization

Interview with
Kent Peterson

The built environment is responsible for 40% of total energy consumption and 35% of carbon emissions in the United States. Transforming our buildings to meet decarbonization and Net Zero Energy goals is a challenge that will take decades to realize fully. However, incremental progress has been underway for years. Just as the industry at large evolves in stages, building owners can make targeted, incremental updates to their systems to improve energy efficiency, reduce emissions, and enjoy financial returns.

Kent Peterson has helped shape the definition of Zero-Energy Buildings for the U.S. Department of Energy and established decarbonization standards and guides as chair of ASHRAE's Center of Excellence for Building Decarbonization. He also works closely with clients to deliver practical, cost-effective design and commissioning solutions.

Read the full article in our Winter 2024 External Magazine!

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Strategies
& Solutions

What basic strategies are recommended for clients who want to lower their energy and carbon footprint?

Kent Peterson: Having a clear plan is essential for lowering energy use and carbon footprints. Start by consulting with experts to create a logical strategy that aligns investments with long-term goals like decarbonization. Energy efficiency is key—it reduces both energy consumption and emissions.

For example, plan for lower-carbon replacements as equipment ages rather than simply replacing like-for-like. If a gas boiler has ten years of life left, determine its future replacement. This strategic planning ensures you're prepared to meet your goals without rushing or overspending.

How should clients develop their plan?

KP: The plan should align with broader goals, such as becoming net-zero carbon by a specific date—say, 2040. By then, the facility or campus should have zero greenhouse gas emissions. Achieving this isn’t just about eliminating fossil fuels. It’s also about addressing any carbon emissions from the electric grid, which could involve strategies like installing solar PV to offset those emissions.

However, it’s important to be strategic. If equipment still has 10–15 years of life, there’s no need to replace it prematurely.

Why shouldn't building owners want to replace old equipment with new, cleaner, and more efficient equipment?

KP: Replacing old equipment prematurely can increase overall carbon emissions. For instance, a new heat pump has both operational and embodied carbon emissions—the latter from extraction, manufacturing, refrigerants, and other resources used to produce it.

The industry is shifting its focus to whole-life carbon, including operational and embodied emissions. While operational carbon has decreased with energy-efficient designs, embodied carbon is now a significant factor.

What solutions would you propose to clients who have already begun investing in energy and carbon reduction measures for their facilities?

KP: Trends and operational data are crucial for clients already investing in energy and carbon reduction. Evaluating metrics like energy use intensity (EUI) can reveal if buildings are performing efficiently or if further improvements are needed. On the carbon side, assessing progress against the overall plan is important.

A key solution is retro-commissioning. Even well-commissioned buildings often operate less efficiently within three years due to adjustments made by building engineers responding to occupant comfort complaints. These changes can disrupt system balance, leading to higher energy costs.

Emerging technologies like AI in control systems offer promising solutions. AI can monitor building operations, identify inefficiencies, and restore optimal settings automatically. This technology is advancing rapidly, with manufacturers integrating AI capabilities into their systems.

Legence &
Energy Costs

What does P2S joining Legence mean for clients pursuing energy and carbon reduction measures?

KP: Joining Legence enhances our ability to help clients with energy efficiency and carbon reduction. We now offer a full spectrum of services—from sustainability planning to design, construction, commissioning, and beyond—with over 1,600 engineers, including experts in zero-energy and decarbonization projects.

This integrated approach means we can be a one-stop shop for clients who want a single partner to handle everything from planning to execution.

Can we discuss the tangible financial benefits clients can expect from investing in energy-efficient building systems?

KP: Rising energy costs, particularly in growing states, make energy-efficient building systems a financially smart investment. By reducing energy use, clients can create a revenue stream to offset the initial investment. For example, if a project cuts thousands of kilowatt hours, those savings contribute directly to paying back the investment.

When retrofitting, clients often face a choice: replace equipment like-for-like or upgrade to lower-carbon, energy-efficient systems. Since replacing old equipment is a sunk cost, the key question becomes whether the added investment pays off over time.

How can building owners navigate the network of incentives and tax breaks from utilities and different levels of government?

KP: Utility incentives and federal tax breaks are powerful tools for building owners. Utility incentives exist because improving energy efficiency is often cheaper than expanding grid capacity.

P2S and Legence specialize in maximizing these incentives. Whether it’s retrofitting boilers, chiller plants, windows, or insulation, many projects qualify for utility incentives, and we guide clients in securing them. Federal tax breaks apply after energy efficiency or decarbonization measures are implemented. While these tax breaks don’t fund projects upfront, they provide significant post-project value, and we ensure clients get the most out of them.

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