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VOL. 35 NO. 2 • JULY 2020

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CODE UPDATE CARBON PERFORMANCE GRID INTENSITY CONSIDERATIONS POST-PANDEMIC EMPLOYMENT STIMULUS PUBLIC DISCLOSURE DILEMMAS

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VOL. 35 NO. 2

JULY 2020

Editor-in-Chief

Barbara Carss barbc@mediaedge.ca

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TEL: (416) 512-8186 • FAX: (416) 512-8344 Published and printed six times yearly as follows: March, April/May, June, Aug/Sept, Oct/Nov, Dec by MediaEdge Communications Inc. 2001 Sheppard Avenue East, Suite 500 | Toronto, Ontario M2J 4Z8 (416) 512-8186 Fax: (416) 512-8344 e-mail: circulation@mediaedge.ca Subscription Rates: Canada: 1 year, $60*; 2 years, $110* Single Copy Sales: Canada: $12* Outside Canada: US 1 year, $85 International $110 *Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to info@mediaedge.ca. Copyright 2020 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 0834-3357 Authors: Canadian Property Management Magazine accepts unsolicited query letters and article suggestions. Manufacturers: Those wishing to have their products reviewed should contact the publisher or send information to the attention of the editor. Sworn Statement of Circulation: Available from the publisher upon written request. Although Canadian Property Management makes every effort to ensure the accuracy of the information published, we cannot be held liable for any errors or omissions, however caused. Printed in Canada

editor’snote A GLOBAL PANDEMIC no doubt deflects attention from the pending release of an updated National Energy Code, but it doesn’t diminish the importance and urgency of its goals. Given the typical timelines for getting new requirements adopted into provincial/territorial codes and ultimately implemented in new construction and renovation projects, the 2030 target date for all new buildings to be net-zero-energy-ready (NZER) leaves little leeway for dawdling. Nor can an energy-efficient, low-carbon built environment be simply conjured by decree. Market capacity — economically viable products and technologies; skilled personnel to design, install and operate them; and supportive lenders proffering accessible financing instruments — will be imperative if Canada is to fulfil its pledge to reduce greenhouse gas (GHG) emissions to 30% below 2005 levels by 2030. Recent tumultuous months have certainly introduced some new complications to what was already an ambitious undertaking, but they have also revealed that humans can adapt quickly and are open to embracing new routines. While analysts with the International Energy Agency (IEA) caution that GHG emissions could again spike upward after a significant COVID-19-prompted dip, a projected longer term curtailment of transportation-related emissions does create some new flex space that wasn’t foreseen as recently as autumn 2019. This issue’s focus on Energy Management examines some of this unexpected new terrain. As an employer, the green buildings sector has been hard hit since March. However, champions like the IEA, Efficiency Canada, the Canada Green Building Council (CaGBC) and the Federation of Canadian Municipalities make a strong case that investment in energy efficiency and low-carbon fuel options could support economic recovery, bolster climate change resilience and position Canadian industry and commercial real estate to flourish. That includes strategies to more closely link energy and carbon performance, and recommendations for best GHG-reducing paybacks based on the carbon intensity of the local electricity grid. Turning to efforts to build market capacity, we look at emerging technology and some of the proposed new energy code requirements. We also explore how benchmarking can help building owners identify energy-saving opportunities, and ponder whether public reporting is a constructive or destabilizing exercise. As might be expected, there is no conclusive answer to the latter question. Similarly, the market and energy code drafters tend to push and pull each other towards higher levels of efficiency. As reported in our features about proposed code changes, accompanying rationale from the Canadian Commission on Building and Fire Codes (CCBFC) notes that some of the contemplated updates are actually catching up with relatively common practices and available products. Others are signaling that it’s time to get more aggressive. “The products on the market today are significantly improved in terms of energy performance from what they were 10 or 15 years ago, and the same will be true 10 years from now,” observes Al Jaugelis, Technical Director with Fenestration Canada, the national association for window manufacturers and distributors. “I think the smart manufacturers realize this isn’t the time for baby steps.”

Barbara Carss barbc@mediaedge.ca @BarbaraCarss

Canadian Property Management | July 2020 3

contents 4 July 2020 | Canadian Property Management

Focus: Energy Management 6

COVID Consequences: Clean energy progress temporarily sidetracked, but it could be a post-pandemic economic kick-start.

10 Pushing the Envelope: Proposed energy code updates for windows and doors. 14 Power Over Ethernet: Emerging option for Internet of Things and smart buildings. 15 Whole Building Airtightness Testing: Proposed new criteria withdrawn from pending National Energy Code update, but still encouraged. 17 Carbon Performance: Calls for more rigorous National Energy Code requirements for fuel choices and building materials. 20 Buoyant Sector: Entrepreneurial geologists seek out Saskatchewan’s helium reserves. 22 Benchmarking and Reporting: Many prospective participants resist invitation to appear on Winnipeg’s energy disclosure map. 25 Municipal Energy Roadmap: Identifying best GHG-reduction paybacks based on the electricity grid’s carbon intensity.

Departments 3

Editor’s note

SPONSORED CONTENT

HVAC MAINTENANCE:

KEEPING TENANTS SAFE & COMFORTABLE HVAC Maintenance: Keeping Tenants Safe & Comfortable It’s critical to execute on your building’s mechanical system’s upgrade before the next heating season to make sure you’re providing tenants with fresh, filtered air and a reliable supply of hot water before it’s too late. No doubt, it takes time to plan, order, and install commercial equipment, particularly in light of the current supply chain constraints, and planning replacements in advance of a breakdown will help you manage those risks while ensuring occupants have a safe and reliable heating system in the midst of a global pandemic. “The last thing property stakeholders want to do is wait until it gets cold to turn on your heater and find out it’s not working,” notes Scott Beneteau, General Manager of Commercial Services at Enercare. “Not only do you risk running against tenant guidelines for providing heat if nothing is working come September, but you could also find yourself vying for a repair appointment time, among other properties.” By waiting until heating season, he adds, property managers and landlords will need to work swiftly to complete projects to keep the systems safe and reliable throughout the winter season.

A proactive partnership There are many reasons why it’s critical to stay one step ahead of HVAC repairs and replacements. At the same time, there are reasons why property management teams may lack the time, manpower, or expertise to do so eﬀectively. Delegating HVAC maintenance to a trusted and experienced HVAC maintenance partner can help avoid costly and constant system repairs. This is the thinking behind Enercare’s preventative maintenance program. After working with clients to select a maintenance program that ﬁts, Enercare’s fully-licensed technicians carry out a broad range of inspections and services throughout the year to ensure virtually all heating, cooling, and other HVAC components are operating at peak condition. What’s more, the program grants property teams access to Enercare’s 24/7 Support Centre to handle more timely concerns and emergencies.

In a recent article from The New York Times, over 500 epidemiologists and infectious disease experts suggested that more than 70% of those surveyed had someone in their household who was at high risk of serious illness or death from COVID-19. This further highlights the need to provide occupants with clean, reliable fresh air. For more information, please visit: enercare.ca/commercial commercialservices@enercare.ca | 1 855-321-1508

COVID CONSEQUENCE Disruptions and Strategies for Clean Energy Progress

The International Energy Agency has been tracking COVID-19’s impact on global energy demand, production and commitment to reducing greenhouse gas emissions. The following excerpt from some of its early findings and observations also examines how policies to support clean energy and energy efficiency could support economic recovery – Editor. THE EXTRAORDINARY disruption of the COVID-19 pandemic has significantly impacted the energy sector with worrying implications for clean energy transitions. Some key clean energy technologies have been encouragingly resilient to the effects of the crisis, but, so far, there is little to suggest that the dramatic structural progress needed to achieve long-term climate and energy goals will happen in the current turmoil. Action and leadership from governments, companies and other real-world decision makers will be required to put the world more firmly on a sustainable long-term pathway. Over the coming weeks and months, the International Energy Agency will continue monitoring and analyzing the effect of the crisis on clean energy progress. Later this year, a major report will provide a more comprehensive analysis of all relevant data from the first half of 2020. 6 July 2020 | Canadian Property Management

FALLOUT Buildings sector energy consumption profiles have changed during the COVID 19 pandemic as restrictions on movement have prompted mass teleworking and eLearning, shifting activities and energy use to the residential sector. For example, residential energy consumption in the United States increased by an estimated 6-8% compared with the spring of 2019. Increased use of information and communications (ICT) has potential implications for energy consumption in homes (for connected devices) as well as in data centres and by networks, with global internet traffic surging by almost 40% between February and mid-April. Many non-residential buildings also need to adapt their energy operation schedules from full-space to partialspace operations, which is not always possible with existing control strategies. The energy

impacts of these unprecedented changes — and whether they will be sustained after the crisis — have yet to be determined. The crisis has also hit construction and related sectors, which employ around 10% of the global workforce. The number of construction jobs in the United States, alone, dropped by 975,000 in April 2020. Upstream industries in supply value chains have likewise been affected, particularly in the cement industry. Although recovery is expected, there is likely to be an ongoing impact, with a 10% decline in new building construction and retrofit investments expected in 2020. Energy storage was already losing momentum at the beginning of the COVID 19 crisis. For the first time in nearly a decade, annual installations of energy storage technologies fell yearover-year in 2019.

energytrends

Wavering policy support in key markets and uncertainties around battery safety impacted growth, with grid-scale installations falling by 20%. The 2020 crisis is likely to compound these effects, as battery production has a particularly complex supply chain from cells, to modules, to packs and installers. Smart grids and demand response programs around the world were already hampered by regulatory clashes and unsupportive policy frameworks, with global capacity expanding a paltry 5% in 2019, while investment in smart grids flatlined. With electricity demand declining, existing system flexibility is likely to be adequate, which will reduce the market for these technologies until demand-pull is fully restored. RECOVERY In developing economic stimulus programs, governments can prioritize policies to promote highly efficient building construction methods and deep retrofits. These operations are particularly labourintensive, provide long-term value and steer

OPPORTUNITIES FOR RENEWABLES The International Energy Agency (IEA) projects an 8% decrease in global energy-related carbon dioxide (CO2) emissions this year, as fossil-fuel-fired generators tumbled offline during the COVID-19 pandemic. Coal, natural gas and oil all lost significant market share due to Sunday-level energy loads throughout North America, Europe and the Asia-Pacific. Notably, when nearly 50% of global demand went into partial or full lockdown in April, weekly energy demand dropped an estimated 17% in partially locked down regions and 25% in regions under full lockdown. IEA analysts forecast a 400% drop in global oil demand and a nearly 300% decline in global coal demand for 2020. Demand for nuclear fuel is expected to dip marginally, while demand for renewables climbs to about the same degree. Renewable energy advocates see opportunities to accelerate 2019 trends, when, for the first time ever, low-carbon options surpassed coal as a source of electricity. Yet, historical evidence from past post-crisis recoveries continues to make them nervous. Energy-related CO2 emissions also dipped following the 2008 financial crisis and then surged again in step with rebounding economies. In contrast, IEA Executive Director Fatih Birol urges global governments to make energy efficiency and renewable energy central to their post-pandemic economic stimulus strategies. It’s a message he conveyed in tandem with the Danish Minister of Climate, Energy and Utilities, Dan Jørgensen, at a virtual roundtable of government ministers and business leaders earlier this spring. With Canada’s Minister of Natural Resources, Seamus O’Regan, also participating, the high-profile group contemplated infrastructure and retrofit investments that could underpin green jobs, economic competitiveness and climate change resiliency. “Putting clean energy at the heart of stimulus plans is an excellent strategy for revitalizing economies while building a more secure and sustainable energy future,” Birol asserted. “In the face of human tragedy and the plethora of consequences of the COVID-19 pandemic, we have also been handed an opportunity to rebuild society in a manner that makes it more resilient to future crises,” Jørgensen reflected. “Renewable energy and energy efficiency are both cornerstones in our fight against climate change, and at the same time both sectors have massive job potential.” –REMI Network Canadian Property Management | July 2020 7

energytrends activity in many equipment and material manufacturing domains. Renovation work could also be facilitated if physical distancing results in some buildings being unused or only partially occupied. Although public health protocols may hinder indoor work, there should still be an opportunity for external upgrades such as rooftop photovoltaics (PV) or external building insulation cladding. Policies could also stimulate demand for high-efficiency, low-carbon products at earlier stages of market adoption, which could help put the buildings sector on track to meet climate objectives, while also reducing consumer energy bills. Heat pump installations and the integration of on-site renewable energy sources (e.g. solar thermal, solar PV, geothermal energy) are manifold opportunities that could be supported by economic recovery plans. Providing low interest rates and adopting new financial models to reduce the upfront costs of efficient technologies could encourage people to seize opportunities, which would reinvigorate the related supply chains. For example, Italy has launched a new 110% tax detraction ecobonus for energy efficiency and seismic security renovations. Service providers can support this process by developing new business models and offering attractive financing support to scale up the installation of energy-efficient solutions at low or zero cost for the consumer. The Cooling as a Service pay-per-service scheme is such a model. In addition to reducing emissions, these measures may also enable job recovery. For every USD $1 million invested in buildings sector energy efficiency, 11 to 35 local jobs are created. Recovery packages can also be used to improve building codes and innovation in building constructions and inspections. For example, they could include requirements that increase the resilience of building operations — through energy storage solutions, the use of renewable energy, and innovative control systems that enhance the synergies between demand and supply at the district or city level — as well as construction, by inducing improvements in off-site construction. zz The complete text of The impact of the COVID-19 crisis on clean energy progress, 10 emerging themes can be found at https://www.iea.org/articles/the-impact-of-thecovid-19-crisis-on-clean-energy-progress 8 July 2020 | Canadian Property Management

SHOVEL-READY ECONOMIC STIMULI By Brendan Haley In searching for “shovel-ready” initiatives to support economic recovery from COVID-19, the Canadian government can leverage an already existing program delivery infrastructure to provide rapid, accountable and effective support to Canadians. Previous experience suggests governments should avoid lengthy internal approval processes, fund whole programs to avoid cherry-picking projects, use third-party validation and have systems to closely track progress. Existing energy efficiency program portfolios meet all of these criteria. Supporting a portfolio of residential, commercial, and industrial programs means administrators can flexibly adjust strategies that make sure the money is actually spent and jobs are created, while adapting to different COVID-19 re-opening policies. Efficiency programs undergo a thorough review process overseen by utility regulators, involving scrutiny by third-party experts and stakeholders. There are established systems for cost-effectiveness testing; evaluation, measurement and verification; and performance tracking. Scale-up funding can be provided from existing federal initiatives. In particular: the Low-Carbon Economy Fund; the Climate Action Incentive Fund; and the Energuide program. Scaling up efficiency programs also deliver on stimulus objectives to create jobs and boost GDP. It’s projected an enhanced level of investment beyond requirements to make the basic targets of the Pan-Canadian Framework Plus (outlined in Dunsky Energy Consulting’s 2018 study for Efficiency Canada and Clean Energy Canada) would deliver annual savings of 2% for electricity, 1.3% for natural gas and 1.9% for refined petroleum products, in every province, in the first five years. The savings are then projected to grow to 2.5%, 1.75%, and 2.5% respectively. These results could be achieved by increasing budgets by $2.2 billion in year-one, scaling up to $11.9 billion, on average over 14 years. That would create 35,000 jobs in the first year, increasing to 280,000 annual jobs in year-eight, while providing a $43 billion average annual increase in GDP and 79 megatonnes of greenhouse gas reductions in 2030. Initiatives that could meet priorities for economic stimulus and greenhouse gas reductions include: Deeper retrofits. Most residential efficiency programs achieve less than 20% energy savings per house, while at least 50% savings will be required to meet climate objectives. Given that 60% of expenditure on home retrofits goes towards labour, focusing on deeper retrofits is a strong job creator. Energy poverty. Directing immediate support for low- and moderate-income households will increase local spending multipliers, and leverage existing programs that are often impeded by restrictive cost-benefit criteria. Advanced building codes. Promoting activities to advance building code adoption was a key component of post-2008 stimulus efforts in the United States. Promoting the introduction of Canada’s soon-to-be released model building codes will create the certainty manufacturers and builders need to retool and retrain, providing a boost to business confidence and a direction for private investment. Heating system market transformation. Deeper retrofits and GHG reductions require switching to more efficient and low-carbon heating systems like heat pumps. Federal support can help break through “fuel silos” that can exist at provincial levels, and promote market transformation objectives. Brendan Haley is Policy Director with Efficiency Canada. The preceding article is excerpted from his blog at www.efficiencycanada.org/energy-efficiency-programs-areshovel-ready.

PUSHING THE

ENVELOPE National Energy Code Turns to Windows and Doors By Barbara Carss

A WIDER SELECTION of highperformance windows and doors is expected to hit the market as Canada’s National Energy Code continues to push the envelope toward net-zero-energyready (NZER) development. A new slate of proposed code changes, released for public review earlier this year, include downward adjustment of permitted thresholds for heat loss through the building envelope and air leakage at the juncture of building components and assemblies. Developers and designers adhering to the code’s prescriptive path would also face stricter constraints on the number and/or size of windows in almost all of Canada’s climate zones. While there will still be leeway to fall short of some requirements via the code’s performance path, which factors in counterbalancing trade-offs elsewhere in the building design, the proposed updates will narrow the room for such manoeuvring. Industry insiders suggest the pending 2020 iteration of the energy code will pose more 10 July 2020 | Canadian Property Management

challenges for developers and designers than the previous 2017 version, and prompt window and door manufacturers to respond. “I think the smart manufacturers realize this isn’t the time for baby steps,” muses Al Jaugelis, Technical Director with Fenestration Canada, the national association for window manufacturers and distributors. “These kinds of code changes are signalling to the industry: It’s time to upgrade your platform.” He predicts market demand will pick up for triple-glazed commercial products such as storefront windows and building entrances that are now primarily sold as double-glazed configurations. Meanwhile, a proposed reduction of U-values for thermal transmittance, or the movement of heat from inside to outside, will most directly affect windows that are designed to be opened because they typically sport twice as much metal as fixed, inoperable windows. “The highest performing part of a window or door, the part that gives you your efficiency, is the glass. The worst performing

part of any window or door is the framing system,” Jaugelis explains. “In most of our market, we don’t have a big supply of operable windows and doors that can achieve this [proposed U-values].” LOWER U-VALUES As proposed, allowable U-values — a measure of heat loss over surface area per degree Celsius of indoor-outdoor temperature differential, which is expressed in watts per square metre per kelvin (W/m2-K) — for doors and vertical windows will drop by varying amounts in all six of Canada’s climate zones. A complementary code change would introduce higher allowable U-values for skylights to recognize that their sloped formation alters how heat transfer occurs, but wouldn’t diminish performance expectations. “The proposed skylight U-values will result in a skylight with the same physical components (i.e. low-e coatings, gas fills and warm edge spacers) as a window that complies with the lower U-values,” states

energycode the accompanying code change rationale from the Canadian Commission on Building and Fire Codes (CCBFC). CCBFC projections, based on modelling of 16 archetype structures in the six climate zones, show a range of resulting upfront cost premiums and energy saving estimates. In general, added costs will be highest in climate zones 7A and 7B, covering much of the populated area of northern Quebec, northern Ontario, Manitoba, Saskatchewan, Alberta and northern British Columbia. That’s pegged, on average, at $12,900 to $14,000 or a 2 to 2.2% premium compared to compliance with 2017 code criteria. The same zones would reap the greatest energy savings, modelled at 94 to 114 gigajoules (GJ) or 2.4 to 2.8% annual savings compared to performance of the 2017 U-value thresholds. Nationwide, large office development would see the largest incremental cost increase, estimated at an average of $25,900 or 2% compared to 2017 criteria, which would deliver a projected additional 178 GJ or 1% annual energy saving. However, gains could be somewhat muted depending on seasonal intensity. “The proposed reduction in window thermal transmittance results in reduced heating, but increased cooling. The better insulated windows reduce heat loss during the winter, but prevent cooling during summer nights/mornings,” the code change rationale acknowledges. MEETING 2030 TARGETS In any case, Jaugelis speculates developers and designers will have to balance off superior performance of some window products for the non-compliance of others. That practice, known as area-weighted averaging, has already been employed to meet standards invoked in 2017 and 2015 editions of the energy code. “The threshold at which you have to take those measures is now moving downward so this may affect some designs and development that wouldn’t have been affected before,” he says. “For fixed windows, with triple glazing, you can meet these [proposed] numbers. As you get to operable windows, it starts becoming almost impossible, although you might reach those numbers in the lowest climate zones, in places like Vancouver and Windsor.” That’s arguably in harmony with the code’s overarching agenda to achieve netzero-energy-ready (NZER) status by the end of this decade — a goal set out in the

Pan-Canadian Framework on Clean Growth and Climate Change to support Canada’s commitment to reduce greenhouse gas emissions by 30% below 2005 levels by 2030. It’s a challenging target that many building specialists agree requires a steady and aggressive schedule for improvement. The CCBFC’s code change rationale confirms the proposed new U-values are aligned with driving 15 to 20% better energy performance than the baseline of the 2017 energy code. Accordingly, Jaugelis sees evidence the emphasis on steady improvement is achieving results in the fenestration sector. “The products on the market today are significantly improved in terms of energy performance from what they were 10 or 15 years ago, and the same will be true 10 years from now,” he predicts. On that front, further advances in thermal break technology will be key if operable windows are to deliver stricter U-values. “The reason fixed windows more easily comply today is because they have less metal, more glass, but we use the same thermal break design in fixed and operable products,” Jaugelis advises. “I think a sophisticated manufacturer will look at the trend of the code going to net-zero and try to get out ahead of it.” REFLECTING MARKET ADVANCES The rationale for other proposed code changes related to windows and doors points to products and practices that have already been adopted in the market. That includes more stringent standards for: allowable air leakage of doors, revolving doors and overhead doors; and reduction of the permitted ratio of windows and doors to overall wall area (given the acronym FDWR for: fenestration and door-to-wallratio) in most of Canada for new construction built to the code’s prescriptive path. The code change rationale calls the existing code allowance for door air leakage “excessive” and argues that “typically readily available doors in the market today” can meet more rigorous standards. Currently, the air leakage threshold is 0.5 litres per second per square metre (L/s-m2) for conventional doors and 5 L/s-m 2 for the revolving and sliding doors serving as commercial property entrances, while proposed code changes would lower those thresholds to 0.3 L/sm2 and 2 L/s-m2 respectively. “Reducing the allowable air leakage r a t e fo r d o o r s w i l l e n c o u r a ge manufacturers to develop and produce

more efficient products,” the code rationale submits. “The trend to higher performing products has been occurring for some time, and manufacturers that engineer and produce these products tend to lead the market,” agrees Mike Plecash, General Manager with Canadian Doormaster Ltd. and President of the Canadian Door Institute, an association representing manufacturers, dealers and distributors. “If we are going to develop effective strategies to deal with climate change, certainly developing highperformance products must be part of this.” Proposed FDWR adjustments vary across climate zones and actually allow for an expanded proportion of windows and doors in climate zones 4 (Victoria) and 5 (Greater Vancouver, Niagara Region and Windsor). Code drafters maintain the new ratios will reduce thermal transfer through the building envelope, thus curbing the energy load for heating and cooling and saving capital costs for HVAC equipment and the envelope itself. “Fenestration is typically an expensive element of the above-ground building envelope and, in some cases, is more costly per unit area than opaque above-ground building assemblies,” the code change rationale states. In line with that argument, it observes that many recently constructed buildings have a lower window-to-wall ratio than the current prescriptive path allows. New prescriptive ratios will also be immaterial for a lot of the booming development in major Canadian cities. “High-rise condo builders almost always use the performance path largely because condos would rarely fall within the required window-wall ratio for the prescriptive path,” notes Andrew Pride, an influential contributor to the energy code in his role as Chair of the National Research Council’s Standing Committee on Energy Efficiency in Buildings. “Developers and architects have a whole lot of tools in their toolbox,” Jaugelis concurs. “The window and door products you use in the building are just one element of the energy management strategy.” All proposed changes to the National Energy Code are now under final review following the public comment period that closed March 13, 2020. Once an updated version of the code is finalized, Canada’s provinces and territories will have to adopt it into their own building codes before any new measures could go into force in those jurisdictions. zz Canadian Property Management | July 2020 11

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A Connected Team The nature of CRE operations means that no one department operates alone. Unfortunately, few CRE companies have the systems in place to foster the collaboration required to execute a company’s plan optimally. COVID-19 has added to this problem by accelerating the trend toward employees working from home. “Take, for instance, a situation where a property manager needs to prepare a leasing forecast for the balance of the year,” says Meltzer. “Because there is no shared information platform, getting this done often means contacting each listing agent or leasing rep. This is both tedious and a waste of time.” By contrast, uniting teams on a shared platform will facilitate wellexecuted plans and help ensure that targets are met. Tech Integration Prop-tech has come a long way over the last five years. The CRE industry has been inundated with new and innovative line-of-business (LOB) solutions, each promising significant benefits. These LOB solutions

require the exchange of output deliverables with one another and access to common asset information. The problem is that the solutions are stand-alone and often with overlapping functionality. As such, each organization needs to decide what its digital landscape is going to look like and how each solution will work with their enterprise accounting system. This can ultimately lead to the creation of even more data silos. “CRE organizations have all these systems but no single, cohesive platform where teams can bring their deliverables together,” says Meltzer. “This disconnect can undermine the Asset Business Plan, if not the organization entirely.” With this in mind, Meltzer has spent the last few years designing and fine-tuning Concatenate RealTime, a real estate business management platform designed to sit “on top” of accounting systems, spreadsheets, and LOB solutions. RealTime monitors work deliverables, integrates work processes, and provides instant status reports to all levels of the organization. “The potential benefits to bringing solutions to these three issues are

massive,” Meltzer explains. “Not only do you get transparency into everything that’s happening in your organization, with all work mapped back to the Asset Business Plan, but a platform like this allows leaders to make changes to any Asset Business Plan and then track those changes to ensure they happen.” CRE management 2.0 If there’s one thing that the COVID-19 pandemic has made clear, it’s that times are changing for CRE businesses. What hasn’t changed is the need for CRE companies to preserve and build portfolio value by optimizing the management of their assets and planning for the future. This is easier said than done in today’s demanding environment, but as with most modern challenges, people, processes, and technology are all part of the solution. Michael Meltzer is the Principal of Concatenate Inc. Learn more about the Concatenate RealTime real estate business management platform at www.concatenateinc.com , email michaelm@concatenateinc.com, or call 647-291-5987.

energyinnovation

LOW VOLTAGE, HIGH CALIBRE Power Over Ethernet Has Smart Possibilities

POWER OVER ETHERNET (PoE) allows power to be carried through an Ethernet cable. Although typically used to deliver data to computers and other devices in a local area network (LAN), these connections can carry electricity also. Indeed, PoE moves low-voltage power, reducing the risk of fire and injuries inherent with high-voltage power. PoE could apply to most devices that fall under the umbrella of the Internet of Things (IoT). Those are low-power devices that require both a network connection and a power source, such as Voice-over-Internet Protocol (VoIP) phones, security cameras, digital signage and smart lighting. In smart buildings, an Ethernet connection powers and connects everything from security systems to elevators to blinds to lighting. While PoE is still a long way from completely replacing traditional power cables, it is expected to become more common as buildings get smarter. For example, PoE connections for LED lighting in a data centre in Long Island, New York, means it consumes about 70% 14 July 2020 | Canadian Property Management

less energy than conventional LED light bulbs. The intelligent PoE system complements the more energy-efficient bulbs because it gives the operations team more granular control over how the centre uses lighting, such as dimming the lights when lower levels are sufficient, or using occupancy sensors to turn lights off entirely when people aren’t around. It also gathers data about how lighting is used in the data centre, to make adjustments that will potentially save energy. Power over Ethernet reduces the time and expense of installing electrical power cabling, and it’s more flexible. Rather than restricting devices to areas where cabling and outlets are located, PoE provides free range to install required devices, such as security cameras in areas that are otherwise difficult to access. If necessary, PoE can be backed up with an Uninterruptible Power Supply unit, which is used to protect hardware from potential power disruption. One of the big advantages of PoE is its ability to give building managers insight into how the space is being used and control over electronics and devices, even

empowering real-time repair and maintenance tasks. More connected devices can also help facility managers make energy-saving adjustments accordingly. Some systems can even measure ambient temperature, detect motion and measure electricity consumption. One example is the networking company Cisco, which itself makes the technology for PoE. The company’s downtown Toronto headquarters is an IoT-connected space, where connected lighting enables IoT sensors to support optimization of building operations. As a result, energy savings of about 177,000 kilowatt-hours, or $45,000 annually, are projected. Beyond energy savings, PoE gives facilities managers options to program lighting for different spectral frequencies or ambient temperatures that could p ot ent ia l ly en h a nc e o c cupa nt s’ concentration, boost productivity and even improve their mood. zz The preceding article is adapted from Ontario’s Save On Energy, Power What’s Next information series. For more information, see https:// saveonenergy.ca/For-Business-and-Industry.

AIRTIGHT BY OPTION

Mandatory Testing Proposal Withdrawn from National Energy Code By Barbara Carss CANADA WILL not become a leader in mandating whole building airtightness testing, or at least not in the near-term future. A proposed change to the National Energy Code that could have made the practice compulsory for construction of large commercial, institutional and multi-residential building designed to comply with the code’s prescriptive path has now been withdrawn upon instructions from the Executive Committee of the Canadian Commission on Building and Fire Codes (CCBFC). The Standing Committee on Energy Efficiency (SC-EE) received the decree during a spring teleconference as it works on finalizing proposed code changes, which were released for public review and comment earlier this year. “The EC directs SC-EE to revise the proposed changes such that airtightness

testing is not mandatory in any compliance path for buildings and houses (NECB and Section 9.36.) at this time,” it states. The timing might have been opportune for uptake of the measure — provided it was adopted into provincial and territorial building codes — because it would have applied broadly in what is currently Canada’s most buoyant commercial real estate sector. Most newly built light industrial warehouse/distribution facilities adhere to the code’s prescriptive path since there’s rarely a need for developers to take the more complicated performance path involving design and building system trade-offs. As outlined in last winter’s code change rationale, the CCBFC also calculates warehouses would gain the greatest energy saving benefit from a testing regime to ensure an air leakage rate of no greater than 1.5 litres per second per metre (L/(s.m2)) of

16 modelled commercial, institutional and multi-residential building archetypes — equating to a 31.4% annual average saving across six Canadian climate zones when compared to a baseline of 4.2 L/ (s.m2). However, the CCBFC foresees potential energy savings and associated emissions reductions for all building types, which must be found in order to hit Canada’s target to cut greenhouse gas emissions by 30% below 2005 levels by 2030 and to achieve the associated goal for all new buildings to be net-zero-energy-ready (NZER) by the same year. It’s anticipated the pending 2020 version of the code will still highlight airtightness testing as an encouraged optional measure. “In regard to how the requirement could affect and improve building performance moving forward, I think it’s a step in the right direction,” says Mike Canadian Property Management | July 2020 15

energycode Rekker, a Project Manager with Tacoma Engineers Inc. and Chair of the Ontario Building Envelope Council’s (OBEC) Codes and Standards Committee. “Looking at some of the goals that were put in place 10 or 15 years ago for where we wanted to be energy-efficiency wise, I wonder if it has taken a little too long to get to this point.” “We see that airtightness testing has an added value for the public for the comfort of space and its reduced energy consumption, not only to improve on the impact of climate change,” concurs OBEC President Ehab Naim Ibrahim, Research and Development Manager with Gamma North America. “If I receive a new-built building that suffers from drafts, I will be suffering as an investor, as an owner, as a business occupying that building.” SEALING LEAKS The proposed change would have been a step up from the existing code provision that requires various building assemblies and components to meet minimum airtightness standards. The CCBFC’s code change rationale notes that air seldom leaks problematically from within those individual elements, but rather at the places where those elements adjoin others. When warmer or cooler air, depending on the season, vacates a heated or cooled space, HVAC systems must then respond. “Various studies have indicated that air leakage could account for up to 30 to 40% of the total energy used to condition the infiltrated air for the building,” the rationale states. “The key to reducing the air leakage of the building envelope is for the worker to properly seal the connections between materials, between assemblies and between the planes of airtightness and penetrations and terminations. A visual inspection does not provide information as to whether these connections are properly sealed or leak air.” To ca r r y out whole bu i ld i ng airtightness testing, trained technicians literally blow air through to measure where and to what degree it escapes. The proposed code change also referenced the standard, ASTM E-3158, for how that should be done. Naim Ibrahim recommends three separate airtightness tests during construction: when the building envelope is first enclosed, or typically at about 40% completion; at 80% completion; and at substantial performance. In particular, he 16 July 2020 | Canadian Property Management

“Looking at some of the goals that were put in place 10 or 15 years ago for where we wanted to be energy-efficiency wise, I wonder if it has taken a little too long to get to this point.” sees the first test as key to identifying issues when it is still relatively easy to correct them. “If you have a minimum threshold that you are going for, if you don’t meet that, you go back and reseal your building,” he advises. Rekker hypothesizes that a mandated threshold of 1.5 L/(s.m2) tied to airtightness testing would inspire greater focus on workmanship at this stage. “It could be easier, and in your best interest, to pay attention the first time and do things right,” he says. For low-rise commercial buildings up to three storeys, the CCBFC’s code change rationale pegs the cost of testing in the range of $500 to $5,000, while it could be up to $50,000 for very large complicated buildings. In both scenarios, energy savings are expected to provide a quick payback. That would be realized through reduction of winter heating and summer cooling costs, albeit with a slight countervailing diminution of the cooling effect of summer’s nighttime and early morning air. Modelling of the 1.5 L/(s.m2) air leakage threshold against a baseline of 4.2 L/(s.m2) revealed a 9% average annual energy saving for the large office building archetype across six Canadian climate zones, a 5.1% average annual saving for the high-rise apartment building and a 10.1% average annual saving for the primary school. IMPLEMENTATION CHALLENGES Over the course of conducting airtightness tests in 26 commercial buildings on behalf of Manitoba Hydro, the Sustainable Infrastructure Research Group, based at Winnipeg’s Red River College, offered some observations on the “nuts and bolts” of the exercise in its final report from June 2015. Among the logistical challenges, it cites environmental

conditions, such as wind intensity or outdoor temperatures, which can constrain when testing can occur. From the vantage point of Manitoba in 2012-2014, it also suggests there might not be a lot of competition in the marketplace for buildings owners seeking service providers. “Based on our experiences, the testing of large, commercial buildings as a sole source of revenue is not, at present, a viable business opportunity in Manitoba. The capital outlay is high, staffing requirements dictate a diverse set of skills and the market for such services is fairly limited at present,” the report concludes. Looking to Ontario in 2020, Naim Ibrahim paints a different picture. “Consultants and labs compete in a low range of fees to do these tests. It’s readily available,” he submits. Much of Ca nada emba rked on COVID-19’s work-from-home regime around the time the public comment period for proposed energy code changes ended on March 13. Since then, CCBFC’s code com m it tees have presumably been in their own homes working through the required steps of the code development process. Once the 2020 version is published, the provinces and territories will still have to adopt new measures into their own codes before they can go into force. This might have been an obstacle to the rollout of whole building airtightness testing in any case. The CCBFC’s recent directions to its St a nd i ng Com m it t e e on Energ y E f f ic ie n cy st a t e: “ T h e E C h a s c o n f i r m e d t h a t t h e P r ov i n c ia l / Territorial Policy Advisory Committee on Codes (PTPACC) does not support mandatory airtightness (blower door) testing at this time.” zz

energycode

CONTEMPLATING CARBON PERFORMANCE Green Building Advocates Call for Expanded Code Criteria In response to the latest rounds of National Building and Energy Code consultations, the Canada Green Building Council (CaGBC) and Royal Architectural Institute of Canada (RAIC) prepared these joint recommendations for the future direction of the codes and how they can be deployed to help achieve Canada’s commitment to reduce greenhouse gas (GHG) emissions to 30% below 2005 levels by 2030 – Editor. NATIONAL BUILDING and Energy Code requirements should address carbon emissions associated with construction and operations. If not all sources of carbon emission associated with buildings are reduced, the codes will not meet the government’s objectives. The building sector has a crucial role in effectively eliminating greenhouse gas (GHG) emissions leading up to 2030 and 2050. In Canada, building operations represent 17% of carbon em issions, with constr uction and

materials estimated to represent a further 11%. Zero carbon buildings are designed to minimize carbon emissions and then offset any remaining emissions, which reduces life-cycle costs and mitigates exposure to carbon pollution pricing. The decisions made at the design stage of new construction fundamentally affect the ability to achieve low emissions in the long term. Given the lifespan of buildings, it is critical that design for low-carbon operations

occur today at scale. Retrofitting these buildings before 2050 will be costly and difficult to achieve. Energy is often used as a proxy for carbon as a performance metric because it is more readily available, relates directly to costs and examples exist for energy efficiency requirements within code. However, energy efficiency and carbon emissions do not always move in lockstep. A building’s energy performance alone fails to consider how carbon emissions vary between electricity grids across the Canadian Property Management | July 2020 17

energycode ZERO CARBON BUILDING STANDARD UPDATED

The Canada Green Building Council (CaGBC) launched Zero Carbon Building (ZCB) Standard Version 2 earlier this year. The update is designed to accelerate adoption of zerocarbon building practices and help Canada meet its climate targets, while spurring innovation and job growth. Version 2 draws on lessons learned from more than 20 real-world ZCB-projects. It aims to get more buildings to zero, faster, by providing more options for different design strategies and by recognizing high-quality carbon offsets when necessary. Since the ZCB Standard launched in 2017, CaGBC has proven through real-world projects and research, that zero-carbon buildings are technically and financially viable across a wide spectrum of building types including schools, offices, multi-residential, commercial, and even industrial buildings. “The changes we’ve made give the industry and government a clear path to show carbon leadership with positive climate action that future-proofs buildings, encourages innovation, and drives job growth,” maintains Thomas Mueller, President and Chief Executive Officer of the CaGBC. ZCB Standard v2 provides two pathways for any type of building to get to zero-carbon. ZCB-Design guides the design of new buildings, as well as the retrofit of existing structures. ZCB-Performance provides a framework for verifying buildings have achieved zero-carbon, and must be revisited annually. ZCB Standard v2 updates focus on these key components: • Embodied Carbon: projects must now reduce and offset carbon emissions for the building’s life-cycle including those associated with the manufacture and use of construction materials. • Refrigerants: ZCB Standard v2 encourages best practices to minimize potential leaks of refrigerants that, when released, can have significant short-term impacts on climate. • Energy Efficiency: ZCB Standard v2 promotes the efficient use of clean energy with more stringent energy efficiency and airtightness requirements. • Innovation: ZCB-Design encourages innovation by requiring projects to demonstrate two innovative strategies to reduce carbon emissions. For more information, see the website at www.CaGBC.org/zerocarbon. –REMI Network

A building’s energy performance alone fails to consider how carbon emissions vary between electricity grids across the country, and between fuels used on site. country, and between fuels used on site. Precedents in Canada and the United States now exist demonstrating how bu i ld i ng c o d e s c a n ef fe ct ively incorporate carbon metrics alongside energy thresholds. If the goal of the code improvements is to reduce carbon emissions, terms such as total “carbon footprint” and “carbon performance” must gain standing alongside “energy use intensity” or “energy performance”. SIGNALLING PREFERRED FUELS The National Energy Code and the National Building Code should include the addition of operational GHG intensity metrics in order to better align code outcomes with the 18 July 2020 | Canadian Property Management

objectives of the Pan Canadian Framework on Clean Growth and Climate Change. Many of the proposed changes to the energy code will reduce the need for thermal energy to heat buildings, which is an important factor in enabling adoption of the clean energy heating solutions needed to significantly reduce operational carbon. By enabling the use of low-grade heat from clean energy sources through prescriptive requirements for all elements impacting thermal energy demand (heating load), a project’s choice of a clean energy source is encouraged. The inclusion of a tiered approach for the energy code is an important change that will create a more effective platform and line of

sight for industry engagement and capacity building leading up to the higher performance thresholds. However, the singular focus on energy efficiency will not achieve the carbon reductions necessary in the next decade to achieve the objectives of the federal government. More importantly, the current approach could create a liability of expensive future retrofits. To encourage new buildings to connect to low-carbon heating sources, the energy code should compare the relative merits of different fuel uses based on their carbon intensity. This should be done alongside requirements for energy efficiency, to limit energy waste and protect consumers against future energy cost increases. Even as efficiency increases, the choice of heating fuel dominates the emissions outcome of building operations. There are several low-carbon options to heat buildings. Regulations should be adjusted to send a clear signal to building designers that these are preferable and also affordable. Setting a carbon intensity budget gives developers an incentive to connect to potential low-carbon heat sources (e.g. electricity, district energy systems), while still providing the flexibility to use carbonintensive fuels for high-value uses like cooking, peak heating demand or back-up heating. Adopting a set of GHG intensity targets alongside energy efficiency metrics would provide local and provincial gover nments with the necessary tools to ensure emissions reductions are achieved when implementing the new version of the code. EMBODIED CARBON METRICS The next update to the code should include embodied carbon reduction targets using a comparative approach where proposed buildings are compared to a baseline version of the same building. GHG emissions associated with the production, use, and the end of life of construction materials contribute significantly to the limited global carbon budget and must be addressed as quickly as possible in order to be eliminated by 2050. Studies indicate that optimizing procurement processes can provide a 20 to 40% reduction of embodied carbon today. To achieve more significant reductions will require the development of new products and materials and the evolution of the entire product value chains — an important reason to begin signaling to the market its importance. The NCB could start by incorporating reporting requirements for Part 3 buildings, in order to help build the knowledge and capacity to assess and minimize embodied carbon emissions.

energycode BOLSTERING ZERO-CARBON COMPETENCIES

A new study by Canada Green Building Council (CaGBC) shows that the building industry still has work to do to ensure professionals have access to the skills and knowledge required to deliver zerocarbon buildings at scale. Accelerating to Zero: Upskilling for Engineers, Architects, and Renewable Energy Specialists defines the core competencies and sub-competencies needed to support zero-carbon building by building industry professions. “Transitioning to zero-carbon buildings offers significant emissions reductions, but it also requires a shift in thinking and practice across the building sector,” says Thomas Mueller, the CaGBC’s President and Chief Executive Officer. “Skilled job training is a critical element in shifting the industry toward a knowledgeable and prepared application of zero-carbon building practices, which will make a positive impact on Canada’s climate goals.” The successful transition to zerocarbon requires specific skills and knowledge. Building to a zero-carbon standard can be more complex, and demands that project teams work more collaboratively, from design through to completion and operation. The report establishes an industry baseline of zero-carbon building skills and knowledge among engineers, architects and renewable energy specialists. This was achieved with insight from 318 survey respondents who selfreported their perceived knowledge and practical experience for the competencies, helping to identify knowledge and skills gaps. In addition, CaGBC tracked preferred learning approaches and available training and education to better understand what opportunities exist for upskilling around these zero-carbon competencies. The study found that barriers to zerocarbon skills acquisition still exist. Further, it suggests that the building sector needs to prioritize the development of zero-carbon building competencies, especially given that early decisions in the building process play a significant role in achieving a zero-carbon building. The study also highlights key considerations for education and training providers, accreditation and professional bodies, and policy decision-makers. The complete report can be found on the CaGBC website at www.cagbc.org/upskill. –REMI Network

“Skilled job training is a critical element in shifting the industry toward a knowledgeable and prepared application of zero-carbon building practices, which will make a positive impact on Canada’s climate goals.” This reporting should follow established international standards, such as EN 15978 and ISO 14040/14044, enabling a quantification of impacts at different lifecycle stages. The upfront carbon associated with production and construction is particularly important given the time for eliminating emissions. Many construction materials being used today can be expected to still be in service beyond 2050. To ensure assessment quality and consistency, the National Building Code should give direction regarding what

assessment methodology and standard needs to be followed, and what databases and tools are acceptable to use for building projects. The National Research Council’s Low Carbon Assets through Life Cycle Assessment initiative will contribute significantly to meeting these needs. zz More information about the Canada Green Building Council can be found at www.cagbc.org. More information about the Royal Architectural Institute of Canada can be found at www.raic.org.

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energyinnovation

HELIUM BUOYS RESOURCE STRATEGY Entrepreneurial Geologists Search Saskatchewan

HELIUM EXTRACTION and production could help buoy the Saskatchewan resource sector as western Canada’s oil and gas industry continues to struggle. Calgarybased North American Helium Inc. has announced plans to get a second field into commercial production. Construction was slated to begin this summer on a new purification facility in Battle Creek, Saskatchewan, as the company’s first well, located nearby in Cypress Hills, comes on-line. Although the general public may be most familiar with helium for its minor sideline use in balloons, it is more practically required in a range of industries, technologies and medical research, including diagnostic testing, semiconductors, fibre optics, nuclear power facilities, rocket systems and welding. Canada theoretically boasts vast reserves of the inert gas, which is a by-product of the multi-million-year breakdown of uranium and thorium, but, historically, it is difficult to find and has almost always been discovered as an incidental offshoot of oil and gas drilling. Dwindling world supply and corollary rising prices have now prompted entrepreneurial geological explorers to actively search for reserves like the two North American Helium has identified in southwest Saskatchewan. Alternatively, helium can be separated from natural gas — where it shows up in trace amounts — through cumbersome and more emissionsintensive industrial processing. “Our Battle Creek project demonstrates that reliable long-term production of helium can be created from non-hydrocarbon sources, which means a smaller environmental footprint while still benefiting from the expertise developed in Saskatchewan’s oil service industry,” says Nicholas Snyder, Chairman and Chief Executive Officer of North American 20 July 2020 | Canadian Property Management

Helium. “The government has shown a commitment to the development of this industry in Saskatchewan, which will contribute new production needed to replace depleting natural-gas-linked helium sources in North America.” The company holds exploration rights for approximately 3.7 million acres, primarily in Saskatchewan and Utah, and recently announced that it secured $39 million in equity financing to be invested in what will be Canada’s largest helium purification facility, as well as fur ther exploration. In tur n, the Saskatchewan government is providing incentives through a provincial sales tax

exemption on exploratory and down-hole drilling and an incentive program for investment in new or expanded oil and gas processing. “Helium production in Saskatchewan is set to take off,” asserts Saskatchewan Energy and Resources Minister Bronwyn Eyre. “The building of this purification facility by North American Helium will enable the province to scale helium production and important export capacity.” “We are fortunate to be operating in a jurisdiction with a supportive regulatory structure, favourable geology for helium production and a skilled workforce,” Snyder concurs. zz

NOVA SCOTIA EXPANDS INTERNET COVERAGE

COVID-19 has prompted accelerated delivery of high-speed internet to some overlooked or underserviced areas of Nova Scotia. Not quite two months after Premier Stephen McNeil allocated $15 million to speed up the project, the crown corporation overseeing the effort boasted it had shaved six months off the original timetable for the first phase of installations and was on pace to build 19 towers within 100 days in Cumberland and Colchester counties. “The importance of high-speed internet for Nova Scotians is pressing. We engaged our internet service provider partners to help solve this critical challenge with ingenuity and urgency and we are seeing results,” maintains Jennifer Angel, Chief Executive Officer of Develop Nova Scotia, which is tasked with developing infrastructure and “high-potential property” in the province. The first phase of the work will allow up to 18,000 homes and businesses to connect to wired or wireless technologies, while access for another 24,000 is expected to be “substantially complete” by the spring of 2021. That will expand province-wide internet coverage to about 86% of the population — up from the current 70%. Ultimately, the government has pledged that at least 95% of province will enjoy access to high-speed internet. That goal was seeded with $193 million when the Nova Scotia Internet Funding Trust was created in 2018, but the cost of required investment has been projected in the range of $300 to $500 million. Another request for proposals (RFP) process is now underway, with a new round of projects expected to be announced this summer. “We’re confident we can meet and exceed this goal, working to get as close to 100% as possible,” Develop Nova Scotia reports. “There are now 15 pre-qualified providers that are eligible to respond to this, and future RFPs. Having more organizations to bid on solutions will increase options for solutions and potentially open the door for more evolving technologies.”

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benchmarking

GOING PUBLIC Scrutiny Can Be Daunting for Benchmarking Beginners By Barbara Carss WINNIPEG’S CALL for voluntary disclosure of energy use and greenhouse gas (GHG) emissions could attract a disproportionate share of high-performance buildings. City officials have invited commercial building owners and institutional facility managers to affix their Energy Star Portfolio Manager results on a publicly accessible map, but the spectre of uninformed scrutiny may hold little appeal for some of the sought-after participants. To begin, public sector buildings are a large majority on the newly unveiled energy disclosure map, which divulges each building’s name and address, size, year of construction, energy use intensity in gigajoules per square metre (GJ/m2), GHG emissions in kilograms of carbon dioxide equivalent per square metre (kgCO2e/m2) and Energy Star score, if available. In turn, the Building Owners and Managers 22 July 2020 | Canadian Property Management

Association (BOMA) of Manitoba cautions that such transparency needs context. “In our opinion, the public disclosure element will lead to a lot of building comparisons that are not ‘apples-to-apples’ comparisons,” says Tom Thiessen, Executive Director of BOMA Manitoba. “Comparing data for two buildings that are used very differently is not a useful exercise, and we wouldn’t want that type of information to be misinterpreted.” BOMA Manitoba’s sister chapter in Toronto voiced a similar argument in 2015 when the Ontario government of the day first moved to mandate energy a n d wa t e r u s e r e p o r t i n g a n d benchmarking (EWRB). The association endorsed the practice as a means to identify where efficiency could be improved, while aler ting against exposing members to undue criticism.

“It will be very disruptive to publicly disclose performance that creates apples-topears-to-oranges comparisons,” BOMA Toronto predicted at the time. Ontario is now the only Canadian ju r isd ict ion where energ y/water benchmarking and reporting are compulsory. As per the enabling regulation, data from the first phase of enrollees — commercial buildings of 250,000 square feet or greater — is due to be released this year. However, the provincial government recently extended the deadline for the final group of designated buildings to begin reporting. The first reporting period for commercial and multifamily buildings in the range of 50,000 to 99,999 square feet has been pushed to 2022, with data to be submitted by July 1, 2023. “Benchmarking is the right thing to do, but it can be much more difficult than

benchmarking

ENERGY EFFICIENCY ALBERTA FULLY DISMANTLED

people might think,” reflects Scott Rouse, Managing Partner of the consulting firm Energy@Work, who has been working with Ontario building owners/managers to fulfill reporting obligations. “And there will be resistance.” Winnipeg’s newly launched Building Energy Disclosure Project augments a few similar voluntary initiatives across Canada, including the Canada Green Building Council’s (CaGBC) national challenge, a province-wide impetus in Br it ish Columbia a nd two ot her programs with civic parameters in Toronto and Edmonton. Looking to the United States, New York City enforces one of the most stringent mandatory disclosure programs and there are several voluntary options. “In terms of uptake, the sustainability leaders are usually the first to join,” observes Kristopher Kolenc, Manager of Research and Sustainability with REALPAC, which counts many of those early joiners among its membership of large commercial landlords, property funds and institutional investors. “Larger owners are more likely to have their own sustainability teams and the resources to participate in such programs. Smaller owners may need more support and tools to understand why they should report and how to report.”

Alberta will regain its status as the only North American jurisdictions that does not have an agency to promote energy conservation. Recently introduced legislation to transfer Energy Efficiency Alberta’s functions to another provincial agency isn’t necessarily a surprise since the majority of incentive programs it managed were cancelled in the fall of 2019. However, the shortlived conservation coordinator did continue to have a scaled-back role overseeing the completion of earlier approved projects and promoting green loan funds and financing schemes. The Alberta government is now redirecting efforts to reduce greenhouse gas emissions largely to carbon capture and other technologies associated with energy production. Emissions Reduction Alberta will play a coordinating role, helping industries tap into the provincial Technology Innovation and Emissions Reduction (TIER) fund — drawn from levies charged to large industrial emitters with an output of more than 100,000 tonnes of carbon dioxide equivalent (CO2e) annually. “Our government has always maintained that we must leverage our

FEARS OF MISINTERPRETATION Winnipeg’s voluntary program is open to buildings of at least 20,000 square feet. The new effort aligns with the municipal climate change action plan and is supported with funding from the federal Ministry of Natural Resources. The Manitoba CaGBC chapter is partnering with the city to provide free workshops and assistance in registering for Energy Star Portfolio Manager and/or applying for Energy Star certification. Participants are also promised civic recognition for making the commitment to benchmarking and transparency. “With the Building Energy Disclosure Project, we hope to enable building owners to better understand the energy performance of their buildings, while

industry partners and small- and medium-sized businesses in order to tackle emissions. We have also committed to streamlining government delivery of services and cutting red tape. By rolling Energy Efficiency Alberta into Emissions Reduction Alberta, we are accomplishing all of the above,” says Alberta Minister of Energy and Parks Jason Nixon. In turn, Efficiency Canada, a nongovernmental organization promoting the dual economic and environmental benefits of energy and water efficiency, laments the loss of a lever it suggests was “a strong candidate for federal investment to kick-start the economy” as Canada rebounds from COVID-19’s wallop. It estimates Energy Efficiency Alberta added more than $850 million to the provincial GDP and created 4,300 jobs in the private sector in an approximately two-year period from 2017 to 2019. “Cutting this job creation agency is a missed opportunity for the province to work towards economic diversification, cleaner growth and providing stable career opportunities for Albertans,” asserts Corey Diamond, Executive Director of Efficiency Canada.

supporting overall reductions in GHG emissions in our community,” maintains Councillor Cindy Gilroy, Chair of the city’s Standing Policy Committee on Water and Waste, Riverbank Management and the Environment. H owe ve r, t h e r e a r e a l r e a d y opportunities to do that more discreetly. Notably, Energy Star Portfolio Manager, which is the platform for Winnipeg’s public disclosure initiative, provides the same personalized scorecard and c ompa r ison s w it h si m i la r-si z e d buildings, but keeps the details private. Although guidance for prospective registrants in Winnipeg’s program promises: “Each participant will be given an opportunity to summarize the nature and extent of their building Canadian Property Management | July 2020 23

benchmarking

“Larger owners are more likely to have their own sustainability teams and the resources to participate in such programs. Smaller owners may need more support.” information; the efforts undertaken to improve energy efficiency and reduce GHG emissions, and providing a greater level of data transparency”, Thiessen expresses concern that casual map viewers won’t look beyond the easily found numbers. “Energy usage is dependent on a number of factors, and building usage is a key factor,” he says. “The numbers can be misinterpreted. Has the data been normalized for vacancies, for example? Or reduced hours? Or what about for hybrid uses of office space like data centres? Data centres can use a lot of servers, computing power and cooling power. Will those types of uses be accounted for?”

Buildings that boast above-average performance will have an opportunity to enjoy some positive attention. Winnipeg officials are highlighting the “showcase” aspect of the program, which could give the general public more insight into and appreciation for commercial real estate’s sustainability profile, although Thiessen suggests programs like BOMA BEST provide a more wel l-rou nde d pict u re of a greater number of environmental management issues. “If participants end up providing data only for buildings that ‘show’ favourably — buildings that are relatively new, with tenants that are low-intensity energy

users — then that defeats the purpose of the program, in our opinion,” he asserts. “It wi l l a lso creat e u n rea l ist ic expectations for owners of older buildings, many of whom are already doing their best to improve their buildings from an energy usage and sustainability standpoint.” Nevertheless, consumers’ expectations are always a factor in the marketplace regardless of whether they can be deemed realistic. Kolenc frames energy reporting in the context of competing in a transitioning economy, and in light of Canada’s ta rgets to reduce GHG emissions to 30% below 2005 levels by 2030, with all newly constructed buildings to be net-zero-energy-ready (NZER) by that year. “We may eventually see some jurisdictions transition to a mandatory [reporting] program or this could even be the case at a national level some day,” he notes. “Going public shows a commitment to sustainability and willingness to improve. Owners who participate are more likely to be aided by the program’s tools and they can also p ubl icly d emo n st r a t e i m p r ove d performance over the years.” zz

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outreach&investment

BUILDING-LEVEL BEST BETS Energy-Saving, Emissions-Reducing Options The Federation of Canadian Municipalities has produced the Municipal Energy Roadmap to help local governments identify effective measures to save energy, cut costs and reduce greenhouse gas (GHG) emissions. It identifies building-level and wider community investments that could have both quick and high-impact paybacks, including three sets of recommendations tailored to low-carbon, moderate-carbon high-carbon electricity grids. The following is an excerpt – Editor. MUNICIPALITIES HAVE significant control or influence over how energy is used in buildings and can create or support local opportunities to produce renewable energy. By working with resident s, busi nesses a nd ot her stakeholders, municipalities can harness these local energy opportunities to create jobs, lead economic recovery and significantly improve the affordability and attractiveness of their communities and the quality of life for residents, while also improving their environmental footprint and tackling climate change. Yet, identifying the right energy and climate change solutions for communities can be challenging. Through this roadmap, the Federation of Canadian Municipalities aims to provide guidance to municipalities on where to invest precious time and resources to achieve the biggest benefits for their communities.

LOW-CARBON GRID Municipalities in British Columbia, Yukon Territories, Manitoba, Ontario, Quebec and Newfoundland and Labrador typically have low-carbon grids with at least 90% of electricity supply generated from renewable and/or nuclear sources. For this grid type, space heating generally accounts for the vast majority of greenhouse gas (GHG) emissions from residential and com mercial buildings, followed by water heating. Natural gas and heating oil are the main energy sources contributing to emissions. The most effective technologies for reducing energy use and GHG emissions in low-carbon grid scenario are mature and widely available across the country. These include: heat pumps in place of gas or oil space heating; building envelope upgrades; improved HVAC controls; low-carbon water heating. Although

electricity energy-efficiency measures and rooftop solar PV projects will only yield minimal GHG reductions in areas with low-carbon grids, these solutions may be important in ensuring there is enough clean electricity supply to electrify heating and transportation. Nevertheless, the low price of gas relative to electricity means that replacing gas with electricity is often not cost-effective based on energy savings alone. This challenge is most notable in the residential sector in Ontario and British Columbia, where one unit of energy in gas costs less than onethird of a unit of energy in electricity. In Manitoba, that ratio is one-half, while in Quebec, it is almost one-to-one. Although switching from gas to electricity brings low or negative financial returns, it may still be a compelling option for municipalities based on the GHG reductions and co-benefits. Moreover, the economics Canadian Property Management | July 2020 25

outreach&investment will become more favorable over time, as the price on carbon rises. Until then, municipal programs and policies such as incentives and financing can be vital in increasing adoption of these high-impact solutions. Beyond cost barriers, several other market barriers are at play. Cold climate heat pump models can be harder to source, for example, and much of the contractor workforce is not familiar with how to size, install and maintain heat pumps, which can negatively impact heat pump performance. High-efficiency lighting, HVAC controls in electrically heated buildings and reduced plug loads may have a nominal impact from a GHG perspective, but can yield medium or high financial returns and reduce energy consumption in all provinces and territories with low-carbon grids. Building envelope upgrades in buildings with electric heating, heat pumps replacing electric resistance and rooftop solar PV will likely have increasingly positive returns over time as energy prices increase. MODERATE-CARBON GRID Municipalities in New Brunswick, Prince Edward Island and Northwest Territories typically have a moderate-carbon grid with 50 to 90% of electricity generated from renewable or nuclear sources. In commercial buildings, space heating, plug loads, lighting and space cooling generally account for the majority of GHG emissions, while, in the residential sector, space heating, plug loads and water heating are the primary emissions contributors. Electricity and oil are the main energy sources contributing to emissions in these jurisdictions, with natural gas hardly used and not even available in many municipalities.

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Municipalities in areas with moderate-carbon grids should focus on heat pumps and other energy-efficiency measures in space heating, as well as low-carbon water heating solutions, highefficiency lighting and rooftop solar PV. Overall, the technologies needed to implement these solutions are mature and widely available across the country, though some exceptions apply. Energy rates in provinces and territories that fall into this grid type are typically very high. As a result, almost all the GHG solutions considered will generate positive annual returns on investment. Additionally, some of the most impactful GHG solutions for this grid type — such as heat pumps, building envelope upgrades and rooftop solar — bring important benefits in addition to GHG reductions, such as increased jobs, occupant comfort and climate resilience. A number of barriers are at play for the most impactful GHG solutions in areas with moderate-carbon grids, which are limiting adoption. In the case of heat pumps, for example, cold climate heat pump models can be hard to source and much of the contractor workforce is not familiar with how to size, install and maintain heat pumps. This can compromise heat pump performance. Rooftop solar PV and solar water heaters are only marginally cost-effective, based on current energy prices. This will change as prices for rooftop solar continue to fall. Until then, municipal programs and policies such as incentives and financing can be vital in increasing adoption of these high-impact solutions. HIGH-CARBON GRID Municipalities in Alberta, Saskatchewan, Nunavut and Nova Scotia typically have high-carbon grids with less than 50% of electricity generated from renewable or nuclear sources. Across all buildings, space heating and plug loads generally account for the majority of emissions. Lighting is another major contributor in the commercial sector, as is water heating in the residential sector. Municipalities in areas with high-carbon grids should focus on energy efficiency and rooftop solar PV. Energy-efficiency solutions that reduce electricity consumption will have a particularly high impact. The carbon intensity of electricity in this grid type is significantly higher than that of gas or oil so electrification options will typically increase GHG emissions, except where electricity-based technologies are exceptionally efficient. Significant GHG reductions may also be realized by municipalities in areas with this grid type through community-level solutions — namely, district energy systems and wind and solar energy generation. Solutions that offer the highest GHG impact with the highest returns are HVAC controls and high-efficiency lighting in commercial and municipal buildings, and heat pumps replacing electric resistance in residential buildings. Based on current prices, solar water heaters are generally not cost-effective based on energy savings alone and rooftop solar PV only gives low returns. This may change as prices for rooftop solar continue to fall. The low price of natural gas means that building envelope upgrades and grey water heat recovery are not generally costeffective based on energy savings alone when implemented in buildings heated with gas. Municipal programs and policies such as incentives and financing will therefore be vital in increasing adoption of these high-impact solutions. zz The complete text of the Municipal Energy Roadmap can be found at https://fcm.ca/en/resources/gmf/gmfs-municipalenergy-roadmap.

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