Harvard Green Campus Initiative:

1
Harvard Green Campus Initiative Finance and
Accounting for Sustainability
Leith Sharp, Director Harvard Green Campus
Initiative June 2007
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The Money
Green Campus Loan Fund
12 Million Fund - interest free capital for high
performance projects
New Construction
Existing Buildings

• 10 Year payback maximum
• Only Cost premium of high performance option
  funded
• Life Cycle Costing used

• 5 Year Payback Maximum
• Full project funded
• Can bundle projects
• Simple payback used

3
The Capacity
The Harvard Green Campus Initiative LAUNCHED in
2000
Co-Chair Faculty, Harvard School of Public
Health Prof. Jack Spengler
Director, Leith Sharp
Co-Chair Assoc. VP, Facilities Environmental
Services Tom Vautin
4
The Capacity
High Performance Building Service
The Harvard Green Campus Initiative - 2007

• 2 Managers
• 6 Coordinators

Campus Energy Reduction Programs - Labs
Co-Chair Faculty, Harvard School of Public
Health Prof. Jack Spengler

• 1 Manager, Medical and Public Health Schools
• 1 Coordinator, Faculty of Arts and Science
• 1 Assistant

Residential Green Living Programs
19 Full-time Staff 40 Part-time students

• 1 Manager, Undergraduate Program
• 1 Coordinator, Graduate Program
• 40 part-time student employees

Director, Leith Sharp
HGCI Base Program Staff

• 1 Manager, Business Organization and
  Communications
• 2 Web staff
• 2 Special Projects Assistant

Co-Chair Assoc. VP, Facilities Environmental
Services Tom Vautin
HGCI Courses at Harvard Extension School

• Sustainability The Challenge of Changing Our
  Institutions
• Green Building Design, Construction and Operations

• ? FY07Operating Cost 1.6million ? Annual
  Savings 6 million 90 million pounds of CO2
  
• 30 Office of President and Provost central
  administration sources.
• 70 from fee for service partnerships funded on
  the basis of extensive savings

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The Savings
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Making a Business Out of Sustainability

• Environmental Procurement
• Professional Development
• Behavioral Change
• Green Building Design
• Productivity and Health
• Green Building Operations
• Renewable Energy

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Environmental Procurement
There are a Large Range of Cost Effective,
Environmentally Preferred Products Available
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Environmental Procurement
Biodiesel in Harvard Bus Fleet

• 25 of Harvards buses and shuttles now fueled
  with biodiesel.
• 20 soybean oil mixed with 80 diesel
• Reduces emissions of particulates and GHGs.
• lt 5 YEAR PAYBACK

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Environmental Procurement

• Green Cleaning
• Reduction in UOS inventory of cleaning products
  from 60 to 3.
• Elimination of toxic chemicals through Green
  Seal certification.
• Use of 100 recycled paper products.
• Immediate human health benefits
• NO ADDED COST

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Environmental Procurement
There are also Innovative Ways to Reduce Added
Costs
11
Making a Business Out of Sustainability

• Environmental Procurement
• Professional Development
• Behavioral Change
• Green Building Design
• Productivity and Health
• Green Building Operations
• Renewable Energy

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30,000 annual cost 2 year payback
Green Skillet
PEER TO PEER PROGRAM Fostering energy, water and
waste awareness and competition involving over
500 kitchen staff.
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35,000 annual cost 1 year payback period
Harvard Real Estate Services
PEER TO PEER PROGRAM Fostered professional
development for sustainability in over 40
building management staff.
HRES Yearly Training Cost 35,000 Immediate
project savings 2005 50,000 lt 1yr Payback
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Making a Business Out of Sustainability

• Environmental Procurement
• Professional Development
• Behavioral Change
• Green Building Design
• Productivity and Health
• Green Building Operations
• Renewable Energy

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Individual Impacts
According to the EPA Individuals can affect
32 of personal ghg emissions through electricity
use, waste, and transportation choices!
Personal Behavior with Environmental Impacts
ENVR E-117 Spring 2006 April 3 2006
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250,000 annual cost 6 month payback
Residential Green Living Programs
PEER TO PEER PROGRAM 2 Full time staff, 40 paid
students outreach to 9,000 students from College,
Harvard Business School, Harvard Law School,
Kennedy School of Government students

• Achievements
• 40 increase in recycling rates
• 10-15 reduction in utility consumption
• Student awareness and leadership
• Savings 500,000/yr.

• a

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35,000 per year Good Payback
LARGE SCALE SOCIAL MARKETING
"I support Harvard University's efforts to reduce
its environmental impacts and implement
Campus-wide Sustainability Principles. I will
make my contribution by pledging to do at least
three of the most applicable actions listed
below
Occupant Education

•  
• Turn off computers, lights, and other equipment
  when not in use.
• Recycle paper, cans, glass, and batteries.
• Make double-sided copies.
• Shut my fume hood sash every time I leave the
  hood (lab users only).
• Tell others about this sustainability pledge.

7,000 Staff Students and Faculty Pledged in
November 2006

• a

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Community-Based Social Marketing

• Key Steps
• Step 1 ID Barriers Benefits
• Step 2 Develop Program using Proven Tools
• Step 3 Run a Pilot, Evaluate
• Step 4 Implement
• Step 5 Continuously Monitor and Adapt

Source Fostering Sustainable Behavior by Doug
McKenzie-Mohr and William Smith
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FAS Energy Reduction Program

• Began in 2002 to address computer energy usage
• Innovative campaigns for the diverse FAS
  community
• Funded by FAS with realized savings
• Over 500,000 in savings to date

Recent developments - Lab
outreach -
Explaining efficiency measures to building
occupants - Green Teams
- Green Campus Network

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CASE 1 Lab Shut the Sash Campaigns
Labs use 3-5x more energy per ft2 than typical
office buildings. How could user behavior improve
efficiency?
http//www.brplusa.com/research/images/harvard-nai
to.jpg
http//www.vanderbilt.edu/AnS/Chemistry/PorterGrou
p/Labpix/alexhood.jpg
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Research
Chemical fume hoods Each costs about 3K/year to
operate, and Harvard has nearly 1000 of
them. Shutting the sash on some models reduces
energy loss. Our research showed that targeting
FH sashes would provide substantial savings.
http//www.mcb.harvard.edu/Overview/Tour/images/Ba
uer.jpg
http//www.eps.harvard.edu/people/faculty/pearsonl
ab/facilities/images/labphoto3.jpg
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Continued Research and Site Investigation
Pilot Warren Alpert Building, HMS
http//hms.harvard.edu/admissions/images/tour/walp
ertt.gif
Naito Building FAS Chemistry Department
Harvard Green Campus Initiative Campus Energy
Reduction Program
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60,000 per year Less than 4 month payback
COMPETITION
Harvard Medical School
Faculty of Arts and Sciences
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Results
HMS Pilot 24,000 and 300,000 lbs. CO2

From
30 sashes closed to 79
Naito Laboratory 67,000 and 526,000 lbs. CO2
27 less
exhaust
Total after 2 years - 209,879 per year
- 2,260,535 lbs. CO2
- 222 cars off
the road - Electricity use
of 132 households - 10 Wine and Cheese Parties

Harvard Green Campus Initiative Campus Energy
Reduction Program
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Making a Business Out of Sustainability

• Environmental Procurement
• Professional Development
• Behavioral Change
• Green Building Design
• Productivity and Health
• Green Building Operations
• Renewable Energy

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HAMILTON HALL, LEED-NC GOLD PENDING Renovation

• Completion Date May 2006
• Address Soldiers Field Road
• Department Harvard Business School
• Building Type Dormitory
• Size 48,000 square feet
• Major Features
•  
• Efficient sprinkler heads
•  
• Water use reduced by 30.88
•  
• Potable water used for irrigation is reduced by
  64.83 by using efficient irrigation systems.

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MATHER DUNSTER KITCHEN, LEED-CI SILVER Renovation

• Completion Date August 2005
• Department Harvard University Dining Services
• Building Type Kitchen
• Size 7,480 square feet
• Major Features
• First LEED kitchen in the nation
• Range Hood controls adjust variable speed drive
• exhaust fans according to actual conditions
• Reduced expected occupant water usage by 32
• Diverted over 95 of construction waste from
  landfills

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46 BLACKSTONE, LEED-NC Platinum Renovation

• Completion Date May 2006
• Address 46 Blackstone Street, Cambridge
• Department Harvard Business School
• Building Type Office
• Size 40,000 square feet
• Major Features
• Ground source heat pumps for cooling
• Valence units for heating and cooling
  distribution
• Enthalpy wheel for latent and sensible heat
  recovery

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Storm run-off on the site is reduced by 35 to 51
Drainage to municipal sewer system eliminated.
30
A serious commitment to construction waste
management
99 waste diversion through reuse and recycling
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Daylight and Views

• Daylight access to over 75 of spaces
• View access to over 90 of spaces

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Energy Efficient Lighting
Daylight and occupant sensing fluorescent lighting
Full cut-off exterior lighting
33
Plumbing
43 reduction in water use from EPAct Standards
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Energy Use
Designed to be 40 more energy efficient than
ASHRAE 90.1
35
Sustainable Carpeting Materials
Recycled, recyclable, PVC-free, low VOC carpet
tiles
Bamboo flooring
Low VOC adhesives and sealants
36
Reused Systems Furniture
Refurbished furniture with recycled materials
37
We Started Here
38
And now
Currently the highest rated comprehensive
historic renovation project in the USA NO ADDED
CAPITAL COST!
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Cost of green Building Decreases as Experience
Increases

• Of 20 LEED building documents in a study compiled
  for Californias Sustainable Building Taskforce,
  the average price premium has dropped from 3.25
  in 1995-1996, to 2.01 in 2003-2004.
• The City of Portland completed three LEED Silver
  buildings in 1995, 1997 and 2000 incurring
  premium costs of 2, 1 and 0 respectively
• The City of Seattle has seen the cost of LEED
  Silver buildings drop from 3-4 several years ago
  to 1-2 in 2003.

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The Whole Building Approach
Source Energy Cost Savings Council
www.plug-in.org

• a

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Architects
Traditional Design Team
Engineers
Contractors
43
Architects
Integrated Design Team
Engineers
www.eere.energy.gov
Contractors
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The TEN Commandments for Cost Effective Green
Building Construction Renovations

• Commitment
• Leadership
• Accountability
• Process Management
• Integrated Design
• Energy Modeling
• Commissioning Plus
• Specifications
• Life Cycle Costing
• Continuous Improvement

Produced by Leith Sharp
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So What Have 20 LEED Projects Taught Us?
2002-2007
2002
2003
2004
2005
46
Making a Business Out of Sustainability

• Environmental Procurement
• Professional Development
• Behavioral Change
• Green Building Design
• Productivity and Health
• Green Building Operations
• Renewable Energy

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The Costs of People Overshadow Building Costs
Significance Very small percentage improvements
in work performance will pay for large
percentage increases in operation and maintenance
costs.
Source Woods (1989) Occupational Medicine 4
753-770
48
How Sustainable Buildings Could Improve Health
Productivity
Green/Sustainable Buildings
Thermal state Hearing concentration Vision Atti
tude Mental performance
Better design, construction, commissioning OM
Superior Work Performance
Economic Benefits
Improved Indoor Environmental Quality
Less Absence
Better Health
Reduced Health Care Costs
W. Fisk, LBNL, White House Conference, Jan. 2006
49
LANDMARK CENTER, LEED-CI CERTIFIED Renovation

• Completion Date October 2001
• Address 401 Park Drive, Boston
• Department Harvard School of Public Health
• Building Type Office
• Size 42,000 square feet
• Major Features
• Harvards first LEED project
• North Americas first use of the DALI lighting
  system. The  DALI  system allows for occupant
  control of lights from personal computers. With
  the  DALI  system, lights can be brought to 80
  of their intensity at times of peak loads when
  utilities are most costly.
• Environmentally responsible materials

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Harvard School of Public Health

• Carbon Dioxide (CO2) Monitoring
• Ventilation Efficiency
• Low-Emitting Materials
• Adhesives Sealants
• Paints
• Carpet
• Furniture and Furnishings
• Thermal Comfort
• Daylight 75 of Spaces

Indoor Environmental Quality
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3
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4
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Harvard School of Public Health Putting a Value
on Productivity
54
Making a Business Out of Sustainability

• Environmental Procurement
• Professional Development
• Behavioral Change
• Green Building Design
• Productivity and Health
• Green Building Operations
• Renewable Energy

55
Overcoming Time Limitations
The Green Campus Team has identified over 200
energy conservation measures in 60 building
complexes and 2.5 million square feet.
Heating, Ventilating and Air Conditioning Systems
(HVAC)

• Fans
• Motors

• Boilers
• Chillers/AC Units

• Fan coil units
• Radiators

Electrical Systems
Building Control Systems

• Thermostats
• Energy Management Systems

• Lights
• Computers

• Office Equipment
• Refrigerators

Plumbing/ Water Systems
Building Envelope

• Walls
• Foundation

• Roof
• Windows

• Doors

• Domestic
• Sewage

• Process and Equipment
• Irrigation

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Building Commissioning

• Commissioning Ensures that Buildings are
• Properly designed
• Correctly installed
• Functionally tested
• Capable of being operated and maintained

• Four Types of Commissioning Include
• New building commissioning
• Retro-commissioning
• Re-commissioning
• Continuous commissioning

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Building Commissioning Case Study
Harvard School of Public Health

• Built in 1962
• 100,300 ft2
• 33 wet lab
• 67 office/administrative/support space
• Retro-commissioning Spring 03

58
Building Commissioning Case Study
Harvard School of Public Health

• Commissioned electrical, plumbing, HVAC and
  general systems
• Recommended projects with simple payback of 3
  year or less
• Findings
• 6 projects with payback less than 1 year
• 4 projects with 1 - 3 year payback
• 6 projects with payback greater than 3 years

Resulted in saving over 400,000 / year with a
simple payback of less than 3 years
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From Retro and Re to Continuous Commissioning

Source http//esl.tamu.edu/cc/

• Texas AM University Commissioning Study
  Results
• Survey of over 50 buildings
• Continuous Commissioning adds 15-45 savings over
  normally commissioned buildings

60
Making a Business Out of Sustainability

• Environmental Procurement
• Professional Development
• Behavioral Change
• Green Building Design
• Productivity and Health
• Green Building Operations
• Renewable Energy

61
Renewable Energy Certificates

• In 2006 Harvard Purchased
• 22,000 MWh of Renewable Energy Certificates
  (RECs)
• All Wind Power
• 7 of our electricity load
• Cost 2.35 per MWh
• Some schools funded these purchases from energy
  conservation savings

62
Ground Source Heat Pumps
Generally reduce GHGs associated with heating
and cooling by 30 or more. Harvard has 6 ground
source heat pump installations and more on the
way. A recent full cost assessment showed no
premium compared to conventional cooling tower
option
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The Carbon Neutral Campus An Integrated Approach
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THE CLIMATE NEUTRAL EQUATION

• Energy Conservation
• Improved Generation Efficiency
• Renewable Energy
• Carbon Offsets
• Green Construction/Development
• Climate Neutral

65
THE CLIMATE NEUTRAL EQUATION

• Energy Conservation
• Improved Generation Efficiency
• Renewable Energy -
• Carbon Offsets -
• Green Construction/Development /-
• Climate Neutral Cost Neutral

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Boston
Cambridge
Allston
67
Allstons Sustainable Design Guidelines
Greenhouse Gas Reduction Strategy The Allston
Sustainability Guidelines chart a course for
Harvard to reduce the emissions of its new campus
in Allston by over 80 compared to a conventional
campus.
68
Structural Reform Finance and Accounting for
Sustainability
69
Accounting Structures Are Getting in the Way of
Best Financial Practice
Barrier Systemic inefficiencies result from
accounting separations between capital, operating
and human resource budgets
Capital Budget Managers
Maintenance Budget Managers
Human Resources Managers
Utility Budget Managers
70
Green Campus Loan Fund Evolution
Resource Conservation Incentive Program (RCIP)
1993 - 1997

• 1.5 mil Revolving Fund
• 5 year maximum simple payback period
• 2.6 mil in loans over 5 years
• 34 Return on Investment
• Unused after 2 years due to lack of service
  support

71
Green Campus Loan Fund Evolution
Resource Conservation Incentive Program (RCIP)
Green Campus Loan Fund for Existing Buildings

1993 - 1997
January 2002

• 1.5 mil Revolving Fund
• 5 year maximum simple payback period
• 2.6 mil in loans over 5 years
• 34 Return on Investment
• Unused after 2 years due to lack of service
  support

• 3 mil Revolving Fund
• 5 year maximum simple payback period

72
Green Campus Loan Fund Evolution
Resource Conservation Incentive Program (RCIP)
Green Campus Loan Fund for Existing Buildings

Green Campus Loan Fund DOUBLED and EXPANDED to
include New Construction
Green Campus Loan Fund DOUBLED again
July 2005
April 2006
1993 - 1997
January 2002

• 6 mil Revolving Fund
• 5 year maximum simple payback period for existing
  buildings
• 10 year maximum payback period for new
  construction to fund cost difference only

• 12 mil Revolving Fund

• 1.5 mil Revolving Fund
• 5 year maximum simple payback period
• 2.6 mil in loans over 5 years
• 34 Return on Investment
• Unused after 2 years due to lack of service
  support

• 3 mil Revolving Fund
• 5 year maximum simple payback period

150 Projects funded to date Average ROI
30 80,000,000 pounds of CO2 reduced 25 projects
funded last 3 months!
73
Green Campus Revolving Loan Fund
Green Campus Loan Fund
12 Million Fund - interest free capital for high
performance projects
New Construction
Existing Buildings

• 10 Year payback maximum
• Only Cost premium of high performance option
  funded
• Life Cycle Costing used

• 5 Year Payback Maximum
• Full project funded
• Can bundle projects
• Simple payback used

74
Protecting High Performance During Value
Engineering

• Green Campus Loan Fund for New Construction and
  Renovations
• Available to fund the cost difference between
  conventional design/ technology and high
  performance design/technology innovations in new
  building and renovations.
• A financial incentive for innovations
• Repayment requirements The loan must be repaid
  at the same rate that projected
  operating/maintenance savings are accrued.
  Maximum 10 year payback period.
• Advanced Building Energy Modeling and Life Cycle
  Costing required

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Loan Fund Performance

• Over 8 million invested in 140 projects
• Average Simple Payback 3 years
• Average Return on Investment 35
• Annual Environmental Impacts

• 80,000,000 pounds of CO2 equivalent
• 8,600,000 gallons of water
• 200,000 pounds of waste diverted

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How would you invest 1,000,000?
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What Makes the Green Campus Revolving Loan Fund
Work?

• The provision of support services such as
• - Facility audits
• - Project identification
• - New technology reviews
• - Project management support
• - Facility management education
• - Forums for information transmittal

Support services Innovation and high
performance facility operations and maintenance
Harvard Green Campus Initiative Green Campus
Loan Fund
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What Makes the Green Campus Revolving Loan Fund
Work?
Provide Financial Access to the
Champions Fostering Peer to Peer Exchange
Competition
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Address Accounting Structures That Get in the
Way of Good Business
WE MUST REFORM STRUCTURAL DISCONNECTIONS TO
ESTABLISH THE RIGHT INCENTIVES
Capital Budget Managers
Maintenance Budget Managers
Human Resources Managers
Utility Budget Managers
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Life Cycle Costing
A method of project evaluation in which all costs
arising from owning, operating, maintaining and
ultimately disposing of a project are financially
evaluated in the decision making process. ? New
Construction ? Major Renovations ? Capital
Projects ? Routine Replacements or Upgrades
81
Life Cycle Costing
Harvard Specific Resources
Harvard-Wide Standards ? Discount Rate ?
Utility Rates and Escalation ? Methodology
82
Life Cycle Costing
Barriers
? Disconnect - capital operating -
operating utility ? Ineffective Integration ?
Incomplete Information ? No Uniform Standards ?
Lack of Understanding ? Lack of Communication ?
No Post Project Evaluation
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Life Cycle Costing
Harvard Specific Resources
Tools ? Harvard LCC Calculator ? Harvard LCC
Manual ? 10, 20, and 60 minute refresher
videos Project Specific Assistance ? Assigning
Roles and Responsibilities ? Identifying Options
for Comparison ? Collection of Information ?
Performing LCC Analysis ? Interpretation of
Results ? Green Campus Loan Fund Application ?
Case Study Development and Distribution
84
To Learn More About The Harvard Green Campus
Initiative
Visit our website www.greencampus.harvard.edu
Subscribe to our newsletter Spring 2007 soon
available
Enroll in our Distance learning course through
Harvard Extension School ENVR E117
Sustainability The Challenge of Changing Our
Institutions Note Next enrollment period is in
January 2007 http//courses.dce.harvard.edu/envre
117/