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What is the true cost of green certification programs applied in water stress areas and sustainable cities concepts Overview, Green Building Certification Program Deep Dive and Opportunities, and Cool Strategy, Projects and Tools

Jay Witherspoon Global Water Sustainability Director

Agenda



Water Stress Overview



Deep Dive & Opportunities



Cool Strategies, Projects & Tools Vision

KPIs

A vision-centric sustainability model aligns sustainable city’s efforts around a set of unifying approaches, strategies, standards and tools 3

Agenda



Water Stress Overview



Deep Dive and Opportunities



Cool Strategies, Projects, and Tools Water Usage Breakdown

World Water Footprint per Capita (m3/cap/yr) [2009 Arjeny.Hoekstra] 4

Water stress and potential solutions

Water Stress leads to Water Crisis

Water Solutions  Water supply innovations, capture,

management – total water cycle

Water Resource Crisis  Inadequate access to safe drinking water

 Inadequate water for sanitation and waste

 Green water treatment &

conveyance

 Wastewater effluent reuse

disposal

Water Stress in 1995

Water Resource Management

 Natural water treatment solutions  Groundwater over drafting (excessive use)

leading to diminished agricultural yield

 Biofuels, vertical farms, & local  Overuse and pollution of water resources

harming biodiversity, oceans, and surface waters

foods

 Ecosystem restoration

 Regional conflicts over scare water resources

sometimes resulting in warfare

 Expensive total water cycle needs  Large energy footprints needed

 Renewables - solar/thermal  Storm water/floodwater

management

Water Stress in 2025

Water Footprint Management

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Agenda



Water Stress Overview



Deep Dive & Opportunities



Cool Strategies, Projects & Tools

KPIs University Affiliation Green Supply Chain Tech Collaboration

VALIDATION 6

DIFFERENTIATION

Why Use A Green Building Certification Rating Program?

Numerous factors influence the decision of which rating system and its associated investments is best for the sustainable city

                  

Availability of sustainable materials in the supply chain Contractor familiarity with materials and approaches/technologies Inflation (both global and local inflation) Contingencies Contracting method (Time & Materials v. Fixed price) Contractor’s fees/profits Design complexity & related expense Occupant consumption behaviours Changes in municipal building codes Integration and inter-relation between supply and demand (robust modeling of vertical and horizontal components) Administrative costs (taxes, licenses, surveys, legal, financing, etc) Bulk purchasing v. individual lot sizes Changing mix of commercial, residential, open space, etc. Time phasing of the Masdar development Advances in technological approaches, cost efficiencies Repair/replacement scheduling for new technologies in UAE climate Government subsidies on operating expenses Government tax schemes/incentives Individual site designs (building orientations & other passive design efficiencies)

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There are numerous factors which impact the decision of whether or not to pursue a sustainability rating, and which level to pursue As regulation becomes more strict and increasingly enforced, technological innovation should follow General economic conditions can have a dramatic impact on the cost and other aspects of City’s approach to sustainable development Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

20%

Global and local inflation are two separate concerns which can have dramatic impact on City’s approach to sustainable development

15% 10% 5% 0% -5% -10% -15% -20%

US All Metals PPI Reinforcing bars

Aluminium Alloy Steel beams

Currency and location of supplied materials impact building materials and certification levels Recent and current oscillations in commodity prices are more dramatic than recently experienced – making pricing the cost of sustainable construction even further challenging.

Source:

“Reducing Carbon Emissions from the UK Housing Stock”, BRE, 2005 “Green Building Market Barometer”, Turner, 2008

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The impact of sustainable design and construction is controllable; however, there are numerous additional factors which contribute to building performance Benefits from Passive/Active Design vs Behavior Design Quality

Behavior of the building inhabitants/users is difficult to predict, yet has a significant impact on the performance of the building.

Maximum Realistic

Systemic Standards

Minimum

Systemic Limitations Behavioral Change (Technology Behavioral Change (Economic) Total Benefit

Motion-sensitive Lighting PV

Even within active approaches there are variances in building performance due to usage patterns aside from culture.

MVHR Hydrocarbon Chiller Condensing Boiler

Payback (years) Waterless Urinals

CO2 Saved (kg/yr) -

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Sources:

20

30

40

50

60

“Masdar City Implementation Roadmap”, Booz & Co, 2008 (modified for current data) “Source: “National Trust HQ Reviewed”, Jones, 2007

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…however, rating systems evolve and push “business as usual” to higher standards

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Source: “USGBC White Paper – Greening the Codes”, US Green Building Council, 2010

Narrowing the list of rating systems: for water stressed regions three building rating systems are potentially relevant World recognition

Costs welldocumented

Ease to Implement at project

Flexibility in Criteria

Criteria Fit Regional Priorities

Near-term Acceptance locally

Fit with Abu Dhabi regulations

Qualitative Score

UAE SIGNIFICANT BUILDING RATING SYSTEMS

4.50

Estidama (UAE)

LEED (USA)

4.75

BREEAM (Gulf)

4.25

OTHER INTERNATIONAL SPECIFIC BUILDING RATING SYSTEMS BREEAM (UK)

3.50

GreenStar (AUS)

3.50

Minergie (CH)

2.50

DGNB (GER)

2.25

CASBEE (JAP)

2.00

Desirable, optimal

Undesirable, Sub-optimal

7 = Best

Source: CH2M HILL analysis, Masdar City interviews, BRE/LEED/Estidama & regional system research references listed previously

0 = Worst

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BREEAM Gulf and Estidama are the systems which best take into account the environmental and climatic conditions of water stressed region SUSTAINABILITY RATING SYSTEM – CRITERIA WEIGHTING

LEED favors site heavily

Source: CH2M HILL analysis, Masdar City interviews, BRE/LEED/Estidama & regional system research references listed previously

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The optimal level of sustainability rating for Sustainable City depends on a balance of financial benefit versus brand-equity benefit Capital investment offset by operating savings (x1)

Initial Capital investment required

Certification level adds to brand equity

(x2)

(x2)

ESTIDAMA (UAE) 1 Pearl 2 Pearl 3 Pearl 4 Pearl 5 Pearl

Quantitative Score

3.00 3.00

Narrowing the list to an overall system and grade depends on two main levers There are primarily two levers driving decisions

3.75 2.50 2.25

LEED (USA) Certified Silver Gold Platinum

3.00 3.00 3.25

1. Strength of the Brand 2. Capital investment required to achieve each incremental increase in rating.

3.50

BREEAM (Gulf) 1 Star 2 Star 3 Star 4 Star 5 Star

3.00 3.00 2.75 2.50 2.25 Desirable, optimal

Undesirable, Suboptimal

5 = Best 0 = Worst

Another consideration is whether the City is a Development Property or Example of Sustainable Living & Technology Innovation Hub

13 Source: CH2M HILL analysis

Evaluation of each rating system starts with a consideration of how many no-cost/low-cost credits are available, then in determining which mid-to-high cost credits fit project objectives 1) Evaluate Prerequisites and Requirements

2) Determine which credits are irrelevant or not possible for Masdar

Step-by-step approach to attaining desired certification level

3) Evaluate “no cost” and “low cost” credits

4) Evaluate “moderate cost” and “high cost” credits

5a) Evaluate synergistic credits

5b) Evaluate high design impact credits

6) Finalize initial approach to obtain certification

Source: “GSA LEED Applications Guide”, U.S. General Services Administration, 2005

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Example – A City seeks the highest rating at the most responsible investment, LEED Platinum is recommended; however, if City seeks the best fit for regional conditions at less investment, Estidama 3 Pearl is preferable Capital Investment Required to Achieve Certification

Range of Capital Expense (AED)/m2

16,000

Estidama 3 Pearl

14,000

LEED Platinum

12,000 10,000 8,000 6,000 4,000 2,000

Will almost certainly add cost, but may retain brand

Can possibly be done at or near usual Abu Dhabi cost

0 25%

35%

45%

55%

65%

75%

85%

95%

Percent of Total System Credits Achieved

Estidama

LEED

Source: Abu Dhabi business-as-usual costing from Faithful & Gould estimates LEED and Estidama required credits information provided by assessor manuals from each system (USGBC/Estidama)

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Agenda



Water Stress Overview



Deep Dive & Opportunities



Cool Strategies, Projects, & Tools

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Vision-Centric Model Aligns Efforts around a Set of Unifying Approaches, Strategies, Standards, and Tools  Establish clear vision  Establish clear goals  Establish triple bottom line, proven Key Performance Indicators (KPIs)

 Chose your building rating level  Align green supply chain  Develop standards and specifications that are commercially viable

 Ensure governance and programme-like controls are in place for large and small projects, programmes, and alliances

 Use tools and models already in the market

Key Strategic Process Ensures Viable Project Alignment with Vision, Governance, and Management 2030 Water Agenda Vision If costs/resources are unacceptable

Goals & Key Performance Indicators (including green supply chain requirements)

Integration Model (Voyage™ model)

Sustainability system criteria

Commercially viable Costing / resource balance

Strong sustainability branding Value proposition

Sustainability system rating

Viable phased approach to meet vision Strong governance & consensus Roadmapped decisions

If rating is unacceptable

Governance & Management

One-of-a-Kind Tools Optimize Sustainability and Resource Management Decisions  C3 – enterprise energy and resource management platform with economic considerations and future casting  Voyage – performs integrated energy, water, and waste balances and to capture inter-relationships between resources and technologies across an facility, city, or state  SI Port – facilitates carbon footprinting and overall sustainability performance tracking backed by cool tools & models  simCLIM – examining the effects of climate variability and change over time and space – what if climate related planning needs

From KPIs, Proven Viable Specifications and Supply Chain Requirements Can Be Determined Chemical Usage 1.75

Relative Benefit Scores

164.4

Water

Public Safety Maintenance

201.8

1.25

163.9 149.9

1

164.6

153.7

150 137.4

98.6

111.5 122.1 100

0.75

50

0.5

0

0.25

Pathogens

200

-50

Dollars (million) and Cost Benefit Ratio (lower is better)

Energy

250 216.3 206.5

1.5

Aesthetics Synthetic Organic Treatment Reliability Noise Flexibility Visual Impact Residuals Traffic Operator Safety

0

-100

Operability DBPs

One planet Population and finite consumption resources

PW Cost-Benefit Ratio Total PW (25 yrs, 20 mgd) Capital Costs - 30 mgd

Infrastructure Transportation Land Use

KA-CARE

Materials & Waste

Design Construction Operations

CapEx Costs to Get Certification Capital Investment Required to Achieve Certification 16,000

Estidama 3 Pearl

14,000

LEED Platinum

12,000 10,000 8,000 6,000 4,000 2,000 0 25%

35%

45%

55%

65%

75%

85%

Percent of Total System Credits Achieved

Estidama LEED Range of Capital Expense

95%

Effective Management of the Supply Chain is Vital Significant product cost and environmental impact is locked in at design phase (e.g. specification)

Manufacturing waste is both an environmental and business cost (e.g. materials efficiency)

The sustainability of sources influences overall sustainability (e.g. supplier standards, material inputs)

Energy sources and efficiency of production impact both cost and greenhouse gas emissions (e.g. demand management)

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Purchasing with sustainability in mind (e.g. green branding)

Transportation is a common contributor to greenhouse gas emissions (e.g. vehicle efficiency, network optimization)

Product efficiency and durability influence environmental impacts (e.g. water efficiency)

Materials selection and assembly influence end-of-life disposal options (e.g. recyclability, take-back opportunities

Portfolio of Extraordinary Sustainability Projects Demonstrates Versatility and Depth of Expertise

        

London 2012 Olympic and Paralympic Games MASDAR City, Abu Dhabi, UAE KA-CARE, Saudi Arabia Brisbane Western Corridor Luggage Point AWTP

Perth Centre of Excellence in Desalination Watermatch Web-Based Tool Dow Chemical Jurong Island San Franciso Urban EcoMap City of Reno Green Energy Dashboard Wind Energy Map

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KA-CARE, Saudi Arabia: At the Forefront of Urban Design  Sustainable city that includes nuclear power

 Application of VOYAGE to evaluate three master plans with respect to the evaluation criteria, based solely on inputs provided by the three planning teams

 Provide a means of comparing the three master plans with each other and with a “business as usual” baseline

WaterMatch Bridges Gap between Municipal and Industrial Clients’ Water Needs  Web-based “matchmaking” application that promotes the beneficial reuse of treated municipal wastewater for industrial use

 Generates new client contacts and project opportunities in industry and municipal water industry

Because no water should be wasted.

 Supports branding of CH2M HILL as a leading water service company

Companies with confirmed interest: ExxonMobil, ConocoPhillips, Shell, Nexen 25

San Francisco Urban EcoMap Tracks GHG Emissions by Zip Code  Tracks GHG by zip code in three separate areas: transportation, building energy use, and waste

 Promotes energy efficiency of buildings and green businesses

 Provides indicators and actions for residents

http://sf.urbanecomap.org/#/explore

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Thank you

Jay Witherspoon Climate Change & Sustainability Centre of Excellence

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