Understanding the energy audit maze

In the U.S. commercial buildings spend over $100 billion per year on energy, according to the EPA, or approximately $2-3 per s/f, representing almost 1/3 of building's controllable operating expenses. The EIA estimates there are over 4.8 million commercial buildings in the U.S., and more than 40% are greater than 30 years old. These buildings represent a significant opportunity for energy efficiency upgrades, rendering substantial cost reductions. Increasing building energy efficiency represents a "Win-Win" opportunity. Government, because they reduce the countries' dependency on foreign oil. Environment, because green house gases are reduced. Economy, because jobs are created. Commercial Real Estate Industry- because operating costs are reduced and valuations increase. The Energy Audit allows a blueprint to improve a building's efficiency. The American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE) have defined multiple levels and components of energy audits. The major objectives of an energy audit are: 1. Establish a baseline of the building's energy use 2. Quantify the energy use according to major function 3. Benchmark against peer buildings when possible 4. Identify energy cost reduction opportunities ASHRAE has developed multi-level guidelines to conduct energy audits, commonly overlaps. ASHRAE Level 1 - Consists of a walk through analysis to assess a building's energy cost and efficiency by analyzing bills and a brief on site survey of the facility. Typically this will yield savings and cost analysis and low to no cost measures, as well as recommended improvements for consideration. This level is particularly useful to prioritize energy savings projects. ASHRAE Level 2- Is a more detailed survey and analysis than a level 1 audit and includes a more detailed financial analysis. This will generally include: data collection, empirical data acquired through various field measurements. It will identify the investment and cost savings analysis of all practical ECMs that meet the owners constraints and economic criteria. A discussion of challenges and procedures are included with data to justify the project implementation. ASHRAE Level 3- Is an Investment grade audit. This is for capital intensive projects that require extensive engineering analysis. The energy saved must cover the cost of the project and provide a competitive rate of return. One must consider: ROI, risk tolerance of the energy markets, and overall costs and access to potential financing. Efficiency is a multi-year challenge and your CEO should lead the strategy, TLR Energy will inject the expertise. Allow us to build a core team to act as a catalyst delivering efficiency recommendations and operational control. Michael Thaler is president of TLR Energy Inc., New York, N.Y.