CPM July 2022

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VOL. 37 NO. 2 • JULY 2022

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editor’snote THE NEXT COUPLE of decades could be likened to a predeadline all-nighter in which weary, alternatingly motivated and desperate proponents will have to grind out passable ways to reduce greenhouse gas emissions (GHGs) in line with expectations from regulators, insurers, tenants and the investment community. However, since this is the buildings sector after all, a more heartening analogy for achieving looming emissions reduction targets might be found in high-rise construction — i.e., it takes a long time to get the underpinnings in place, but once they’re above grade, they fly.

The Canadian government’s 2030 Emissions Reduction Plan, released in late March, seems to be counting on the latter scenario. Its projection for a potential 53 megatonne decrease in carbon dioxide equivalent (MtC02e) emissions across Canada’s stock of commercial and residential buildings may understate the challenges of facilitating a 41% drop from 2019 levels within the next seven to eight years, but it provides a tangible picture of what is theoretically possible and how it might be accomplished. (That includes a key assignment for the government itself, which will have to update building and energy codes at a much faster pace than it has historically demonstrated.)

Similarly, a new study of deep retrofit logistics from the Canada Green Building Council examines the technology, workforce capacity and industry support services needed to achieve GHG emissions reduction targets for 2030 and 2050. It’s clear that a lot of pieces of the puzzle will have to fit together quickly .

“We need to do many, many, many more retrofits than currently,” Jeff Ranson, Senior Director, Energy, Environment and Advocacy with the Building Owners and Managers Association (BOMA) of Greater Toronto, reiterated in a presentation at the recent REMI Show in Toronto. “We need somewhere in the neighbourhood of three times as many every single year between now and 2040 to hit carbon targets and every single one of them needs to achieve target savings.”

Energy management technology appears to be a promising propellant, both because much of what’s needed already exists and based on a track record of delivering improved performance and lower costs over time. As we explore in this issue, heat pumps are flagged for a key role. Again, regulators are urged to move more quickly in getting allowances for moderately flammable refrigerants in place to support uptake of variable refrigerant flow (VRF) systems, which perform well in cold weather.

Looking to what’s still emerging and deemed critical, green building and energy system specialists emphasize energy storage and a smart electrical grid. That also underscores governments’ required infrastructure contribution.

“Broadband is the single most important missing piece of the whole thing being stitched together,” Andres Carvallo, an engineering professor and strategic consultant on smart technology applications for utilities, cities and enterprises, observed during a recent online briefing sponsored by the United States Energy Association.

Barbara Carss barbc@mediaedge.ca

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Canadian Property Management | July 2022 3

contents

Focus: Energy Management & Emissions Reduction 6

Hard Targets: The Canadian government sets out expectations for the buildings sector in the 2030 Emissions Reduction Plan, released in late March 2022.

10 Clean Energy Performance Assessment: The International Energy Agency delivers a report on Canada’s energy supply, demand, conservation and innovation efforts.

14 Electrifying Progress: Heat pumps considered key to fuel-switching away from natural gas boiler systems, with emerging developments expected to ease that process.

17 Climate Change Adaptation: Canadian government asks for public input ahead of the fall release of a national strategy.

18 Net Zeroing In: Canada Green Building Council examines the logistics of conducting wide-scale deep retrofits.

24 Low-carbon Technology: Many products and equipment are available to enable greenhouse gas reductions, but most are still building market share.

28 Low-GWP Refrigerants: HVAC industry and prospective system purchasers are waiting for regulators to catch up on allowance for moderately flammable formulations.

30 Swaying Consumer Choices: Study finds prospective renters respond to comparative energy scores on apartment listings.

Departments 3

Editor’s note

Building Science & Structural Engineers Building Envelope Assessment & Remediation Structural Restoration Due Diligence/Pre-Purchase Assessment Property Condition Assessment Structural Engineering Roof Consulting

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Reasons To Attend BOMEX 2022 √ Crossing PEI Off Your Bucket List √ Celebrating Excellence

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Informed Education Streams • • •

Sustainability For Tomorrow People-Oriented Building Solutions Practical Applications of Innovation & Emerging Technologies

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Unique Local Excursions • • • •

The Internationally recognized Canadian Centre for Climate Change and Adaptation Golf at The Links at Crowbush Cove, PEI’s premier golf course The Anne of Green Gables Cavendish Beach Tour A visit to Confederation Bridge and South Shore

Join industry leaders from across the country, re-connect with colleagues, re-energize at social events, and re-imagine the exciting road forward at BOMEX 2022.

BOMEX 2022 Keynotes

Tareq Hadhad Founder/CEO of Peace by Chocolate

Dr. Adam Fenech Director, University of Prince Edward Island Climate Lab Climate Change Strategy, Urgency & Hope

At BOMEX 2022, Dr. Adam Fenech, will speak about the impact of climate change across Canada, the implications for the Commercial Real Estate Industry, and whether climate change is indeed reversible.

I am not a number. I am a human being

Tareq Hadhad tells how he went from Syrian refugee to founder and CEO of Peace by Chocolate. The recipient of the EY Entrepreneur Of The Year 2021 for Atlantic, named one of the Top 25 Immigrants in The Maritimes, selected by Google as the National Hero Case, and awarded RBC’s top Immigrant Award and Entrepreneur of the Year in 2020.

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HARD TARGETS

Canada’s Emissions Reduction Expectations for Buildings The emissions output of Canada’s building stock has regressed against targets for economy-wide reductions. The 2030 Emissions Reduction Plan, released in late March 2022, outlines a multi-sectoral approach for curbing greenhouse gas (GHG) emissions by 40 to 45% compared to 2005 levels. However, in 2019 (the most recent year for which numbers are available), the volume of emissions from buildings was more than 8% higher — at 91 megatonnes of carbon dioxide equivalent (MtCO2e) versus 84 MtCO2e in 2005.

The reduction plan — a requirement under the Canadian Net-Zero Emissions Accountability Act — projects GHG emissions from buildings could drop to 53 MtCO2e by 2030, representing a 37% decrease from 2005 and a 41% decline from 2019. That’s based on the presumed potential for reductions that should be achievable through climate action measures that are now in place or to be rolled out over the life of the plan.

Complementary investment and actions from the private sector and provincial/territorial and local governments could conceivably drive emissions even lower, as could the emergence and acceleration of new technologies, financing mechanisms and changes in consumer behaviour. However, the reduction plan emphasizes that projections for the seven sectors identified as major sources of GHG emissions “are not sectoral targets; they are projected sectoral contributions”, while noting that “labour availability, technology and infrastructure requirements” are also key factors in the pace of progress.

The following excerpt from the reduction plan discusses the challenges and opportunities that the buildings sector presents, along with the government’s strategy for tackling them – Editor BUILDINGS ACCOUNTED for 12% of Canada’s direct greenhouse gas (GHG) emissions in 2019, or 91 megatonnes (Mt).

Offsite generation of electricity for use in buildings brings the total to around 17%.

This percentage could increase further if accounting for embodied carbon from the manufacturing of building materials such as concrete and steel.

More than 85% of buildings sector emissions come from space and water heating due to the use of fossil fuel equipment such as natural gas furnaces, and 6 July 2022 | Canadian Property Management

extra energy demand to heat and cool buildings with insufficient envelope performance. Remaining emissions come from electricity used to power appliances, lighting and auxiliary equipment.

Much of the technology needed to decarbonize the buildings sector exists today.

For example, electrification of heating by switching from fossil fuels (e.g. oil, natural gas) to electric heat pumps is an economic and viable option in most parts of Canada, particularly as electrical grids expand capacity and decarbonize in parallel.

EXISTING AND MISSING INGREDIENTS Energy efficiency measures such as upgrading the building envelope with improved insulation, replacing windows and doors or air-sealing are also essential for decarbonization. Combined with fuel switching, energy efficiency can lower heating and cooling loads, minimize demand on the electricity grid, help control energy costs and reduce the cost of heating with low-carbon technologies.

The market uptake for some of these technologies has been slow. (See story, page

emissionsreduction

FOSTERING CLEAN TECHNOLOGY Deployment of commercially available clean technologies must move faster and innovation must also be accelerated as 50% of global GHG emissions reductions by 2050 will need to come from technologies that are still in early stages of development. The future of Canada’s clean technology industry and climate commitments rests on scaling up the adoption of commercially available clean solutions and readying emerging climate innovations.

The Government commits to strengthen federal coordination on clean technology and climate innovation through a whole-of-government strategy. The strategy will build on existing progress and identify additional actions in five priority areas: • Innovation support through additional funding to trial pre-commercial clean technologies and de-risk large-scale pilot projects critical to net-zero transitions.

• Investment in deployment through transformative investments in the infrastructure needed to enable clean electrification solutions and the shift to clean fuels, including battery storage and renewable energy. The government will also finalize the extension of the accelerated capital cost allowance to critical clean energy and energy efficient technologies, such as hydrogen production by electrolysis of water and renewable fuel production.

• Clear regulatory signals through a carbon pollution pricing trajectory that will reach $170 per tonne of CO2e by 2030, and targeted sectoral regulations such as through forthcoming sectoral efforts to introduce a clean electricity standard and a regulated zero emission vehicle sales mandate.

• Tax incentives to help de-risk capital investment in clean technology projects to speed up their deployment in step with climate commitments. Specifically, the government of Canada will develop an investment tax credit for carbon capture, utilization and storage.

• Procurement leverage as the largest asset owner and public procurer of goods and services in Canada. The government of Canada will develop procurement requirements to green federal buildings and construction materials, fleet, fuels, electricity and other high-carbon goods that the government buys.

24) However, further innovation will improve affordability and support broader adoption.

Reducing embodied ca rbon in construction materials such as steel and concrete is a key opportunity to further reduce emissions in the buildings sector.

New research and development will continue to deliver lower cost, higher performing technologies and approaches, creating even more opportunities to economically decarbonize the sector.

Strong building codes set the baseline for building performance and lock in best practices in construction. The government of Canada actively works with industry as well as provincial and territorial governments on the development of increasingly stringent, performance-based model building codes, including to introduce net-zero energy-ready (NZER) model codes for new construction and the code for retrofits to existing buildings. Wide-scale adoption of these codes will go a long way to improving the performance of Canada’s building stock.

Canada’s building sector workforce will need to grow dramatically to meet increasing demand, including professional and trades

START LINE AND GOAL POSTS Four of the seven major sources of greenhouse gas (GHG) emissions identified in Canada’s 2030 Emissions Reduction Plan spewed a greater volume in 2019 than in the base year of 2005. However, a substantial decrease in the electricity sector along with more modest curbing in heavy industry and in the multi-sectoral waste, light manufacturing, construction and forestry category helped to balance out the economy-wide results.

That allowed Canada to claim a 1.2% reduction in GHG emissions relative to 2005 levels — well off the pace to the nationally targeted 40 to 45% reduction by 2030. National GHG output measured 739 megatonnes of carbon dioxide equivalent (MtCO2e) in 2005 and 730 MtCO2e in 2019 based on data from the National Inventory Report, which is compiled in compliance with Canada’s standing as a signatory to the United Nations Framework Convention on Climate Change (UNFCC).

Comparing results from 2005 to 2019, emission output jumped 19% in the oil and gas sector; 16% in transportation; 8% in the buildings sector; and 1.4% in agriculture. The electricity sector delivered a 48% reduction; heavy industry emissions dropped 11.5%; and waste and other sectors registered a 10.5% decrease.

Looking to where further reductions are foreseen, the reduction plan projects a further 77% drop in the electricity sector, cutting emissions from 61 MtCO2e in 2019 to just 14 MtCO2e by 2030. Emissions from the buildings sector are projected to decrease 37% from 2005 levels, for an annual output of 53 Mt CO2e.

Oil and gas is tapped for a 31% reduction from 2005 levels (or 42% from 2019’s tally) trimming output to 110 MtCO2e. Annual transportation related emissions are projected to fall to 143 MtCO2e, representing an 11% drop from 2005 levels or a 23% decline from the 2019 tally.

More information about the National Inventory Report can be found at www.canada.ca/en/environment-climate-change/services/climate-change/ greenhouse-gas-emissions/inventory.html.

Canadian Property Management | July 2022 7

emissionsreduction GREEN BONDS CREATE FUNDING INSTRUMENT On March 3, 2022, the Canadian government released its Green Bond Framework and on March 23, 2022 issued its inaugural green bonds — the first of many. The green bond offering saw robust demand from environmentally and socially responsible investors who represented a majority of buyers (72%), as well as from international investors, who made up more than 45% of the investor base.

This $5 billion issuance, the largest in Canadian history, will allow investors to support federal investments in climate action and environmental protection, while fostering further development of the Canadian sustainable finance market. Canada’s green bond program will add liquidity and AAA-rated ESG assets to create a more mature, liquid and diverse market for investors, and support the growth of Canada’s sustainable finance market.

As outlined in the framework, nine categories of spending are eligible uses for proceeds of a green bond issuance: • clean transportation • living natural resources and land use • energy efficiency • terrestrial and aquatic biodiversity • renewable energy • climate change adaptation • sustainable water and wastewater management • circular economy adapted products, production, technologies and processes • pollution prevention and control The government is also obliged to publicly report on the allocation of green bond proceeds in the fiscal year following an issuance.

The complete text of the Green Bond Framework can be found at www.canada.ca/content/ dam/fin/publications/green-bond/21265 Green Bond Framework_EN.pdf.

people in construction, renovation, equipment manufacturing, installation and repair, building maintenance, energy assessment and management.

Decarbonization of the buildings sector is also expected to create new entry points for workers wit h d iverse professions and identities.

A whole-of-government and whole-ofeconomy effort focusing on regulatory, policy, investment and innovation levers is needed to drive decarbonization of the buildings sector. The government of Canada will continue to put in place actions to provide the certainty and market signals needed by the private sector to make investment decisions.

Complementary actions from all orders of government will be needed to accelerate building code adoption, transform space and water heating, and build the workforce needed to achieve net-zero. Successful decarbonization of the buildings sector will also depend on a number of enabling conditions, such as electrification and clean grids, a zero/low-carbon supply chain, innovation in construction practices and private financing.

GREEN BUILDINGS STRATEGY To lay the foundation for a net-zero buildings sector, the government will invest 8 July 2022 | Canadian Property Management

$150 million to develop a national netzero-by-2050 buildings strategy, to be known as the Canada Green Buildings Strategy. Working with partners, the strategy will build off existing initiatives and set out new policy, programs, incentives and standards needed to drive a massive retrofit of the existing building stock, and construction to the highest zero carbon standards.

The Buildings Strategy will: • Develop a Low Carbon Building Materials Innovation Hub to drive further research, building code reform and demonstration activities, all promoting the use of lower carbon construction materials (e.g., wood, steel, cement, etc.) in the built environment; • Develop regulatory standards and an incentive framework to support the transition off fossil fuels for heating systems; • Develop an approach to require EnerGuide labeling of homes at the time of sale, and design a complementary Climate Adaptation Home Rating Program; • Launch a new Net-Zero Building Code Acceleration Fund to accelerate adoption

and implementation of the highest performance tiers of the national model energy codes, incentivizing stakeholder participation while addressing persistent challenges in Canada’s codes system, and paving the way to a code for alterations for existing buildings; • Improve federal capacity and technical support to provinces, territories and key stakeholders for the development and adoption of net-zero emission codes, and alteration to existing buildings codes; and, • Develop an approach to increase the climate resilience of the built environment.

To help meet the goals of accelerating retrofits and net-zero new builds, the following additional investments are being made: • $458.5 million in contribution and loan funding to support the low-income stream of the Greener Homes Loan Program, which will support increased energy savings.

• $33 million to establish a Greener Neighbourhoods Pilot Program, which will retrofit homes or units in up to six communities across the country using an aggregated building retrofits approach based on the Dutch "Energiesprong" model. This support for community-level home retrofits aligns with the Net-Zero Advisory Body’s recommendation to seek out opportunities to decarbonize multiple buildings at once.

• $200 million to support deep retrofits of large buildings through a retrofit accelerator initiative, which will provide help to address barriers to deep retrofits (such as audits or project management).

• $183 million to support a decarbonized and climate resilient construction sector through the development of standards and building codes, the establishment of a Centre of Excellence, research and development activities — including a concrete and cement R&D initiative, timber construction R&D initiative and multi-sector collaboration challenges — and a procurement challenge. zz The complete text of Canada’s 2030 Emissions R eduction Plan can be found at www.canada.ca/content/dam/ eccc/documents/pdf/climate-change/erp/ Canada-2030-Emissions-Reduction-Planeng.pdf.

PHOTOGRAPHY COURTESY OF EZIO MOLINARI

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TRANSITION STATUS Canada’s Clean Energy Efforts Garner International Plaudits

By Barbara Carss CANADA’S CLEAN ENERGY efforts have been deemed exemplary among oil and gas producing countries. A recent report from the International Energy Agency (IEA) generally commends the federal government’s targets and policies for reducing greenhouse gas emissions and identifies Canada as a potential key player in the transition to low-carbon energy sources — both as a stable supplier of the fossil fuels that will be needed in the interim and as a leader in curbing emissions from oil and gas production.

As an oil and gas exporter, Canada is in the minority of the IEA’s 30 member nations.

However, IEA Executive Director Fatih Birol suggests that gives it strategic influence in the Organisation of Economic Cooperation and Development (OECD), with which the IEA is affiliated, and the wider global context.

One of the world’s most stringent emission taxes — currently at $50 per tonne, but set to increase in annual $15-increments until it reaches $170 in 2030 — a recent pledge to cut oil and gas methane emissions to 75% below 2012 levels by 2030, and committed 10 July 2022 | Canadian Property Management

investment in energy-related research and development (R&D) are all cited as indicators of serious intent.

“We still need oil and gas for years to come and, therefore, somebody has to produce it. I prefer that fuels are produced by countries that: a) produce them in a clean way; and b) are reliable partners for the consumers.” Birol observed during an online media briefing earlier this year in conjunction with the release of the IEA’s report. “We follow many oil and gas producing countries around the world, looking at their plans, programs and the concrete steps they are making. I can very easily and comfortably say, in terms of transformation and taking it seriously, Canada is definitely in the top league of all those oil producing countries when it comes to addressing our climate challenge.”

“The IEA is one of the world’s most trusted voices on energy and it’s both rewarding and reassuring to have the agency acknowledge our impressive leadership, as they put it, on climate action, while commending our conscious efforts and historic investments to get Canada to net-zero emissions by 2050,”

responded Canada’s Minister of Natural Resources, Jonathan Wilkinson, who also participated in the online briefing.

That said, the report identifies many opportunities for improvement and makes recommendations for priority actions as part of a comprehensive review of energy policy, programs, infrastructure, demand pressures, components of supply and resulting environmental implications.

The IEA conducts such in-depth assessments of all its member nations on an ongoing basis, and last scrutinized Canada’s energy landscape in 2015.

For 2022, IEA analysts highlight three fundamentals of the low-carbon transition — energy efficiency, renewable energy, and R&D and innovation — which are further emphasized in two of the report’s four overarching key recommendations.

They call for increased federal funding for emerging clean energy technologies and the development of a national energy efficiency strategy that establishes targets for the buildings, transportation and industrial sectors.

energymanagement

S CONSUMPTION AND CONSERVATION Energy efficiency plays a central role in reducing GHG emissions and is frequently tapped as a logical economic driver of the low-carbon transition through investment in retrofitting homes, commercial and institutional buildings and industrial facilities. In contrast to Birol’s flattering characterization, it’s also a category in wh ich C a n a d a st u mble s a s a n international role model.

“Canada, in 2019, still had the highest energy intensity of GDP among IEA member countries and the second highest energy intensity per capita,” Divya Reddy, IEA analyst and lead author of the Canada review, confirmed during the online briefing.

That equates to 119 tonnes of oil equivalent (toe) per USD $1 million compared to the IEA average of 65 toe/USD $1 million, and 5.47 toe per capita versus the IEA average of 2.9 toe per capita.

In the decade between 2009 and 2019, Canada’s GDP grew by 24%, while, reflective of more efficient performance, energy intensity of GDP decreased by 10%.

Energy intensity per capita remained fairly steady, albeit rising by 0.05%, over the same period, as the population grew by 12%.

“Canada’s energy system today is still heavily dominated by fossil fuels and in 2020 the largest source of energy supply was natural gas, which accounted for 39%, followed by oil at 33%,” Reddy noted. “Total consumption of energy increased by 12% between 2009 and 2019, driven by economic growth, and in line with that, energy-related carbon dioxide emissions have also been steadily increasing in recent years.”

Buildings account for slightly less than one third of total final energy consumption, although, at 67 million tonnes of oil equivalent (Mtoe), it’s a roughly comparable portion to the other two predominant end uses — industry (71 Mtoe); and transport (68 Mtoe).

Residential dwellings represented about 53% of the sector’s energy demand in 2019 with the remainder in commercial and institutional buildings. Sector-wide, 58% of energy demand was attributable to space heating, equating to more than 35 Mtoe and far outdistancing other uses such as water heating, lighting and cooling.

Looking at where more impetus is needed, the report points to the familiar Canadian complication of shared federal-provincial jurisdiction and urges the federal government to use its leverage to prompt more action and/ or better results.

IEA analysts recommend: faster rollout of national building and energy codes with requirements to meet retrofit and net-zeroenergy-ready standards; tying federal funding for energy efficiency in buildings to “outcomebased” targets and ensuring that energy poverty is addressed; and introducing incentives and/or regulations to drive the adoption of energy management systems and i mplement at ion of energ y aud it recommendations in industry.

Those are in line with policy directions that Efficiency Canada, a national research and advocacy organization promoting the dual environmental and economic benefits of resource conservation and climate action, has actively endorsed. Brendan Haley, Efficiency Canada’s Policy Director, maintains that some federal measures are languishing, while others need refinement to draw more uptake and achieve better results.

“The emphasis on energy management systems is something that has received little federal policy attention, despite a federal policy goal to see 75% of industrial energy demand benefiting from energy management systems by 2030,” he notes. “The recommendation to ‘set

outcome-based targets for each financial program targeting energy efficiency in buildings’ highlights that federal programs, such as Greener Homes and the Canada Infrastructure Bank, are providing incentives without net-zero emissions compatible standards to guide them. Existing programs are supporting incremental energy and GHG savings more than the scale required for net-zero.”

INNOVATIVE TECHNOLOGIES R&D In other prioritized elements of the lowcarbon transition, Canada ranks third among the 30 IEA member nations for the percentage of its GDP — 0.6% — it invests in R&D and supporting commercialization of innovative energy technologies. That includes a focus on hydrogen, nuclear small modular reactors and, closely tied to its conventional fossil fuel resources, carbon capture utilization and storage (CCUS).

“Canada is already a global leader in CCUS with four of the world’s 26 commercial projects in operation as well as extensive expertise in research and development, and these technologies can notably play an important role in decarbonizing upstream crude oil production,” Reddy advised.

Accordingly, Birol ranks carbon capture and storage in the top three of approximately 800 technologies contemplated in the IEA’s roadmap for the low-carbon transition.

“In the absence of CCUS, reaching our climate goals will be much more difficult, if at all possible,” he said.

It also aligns with the role he sees for Canada as “an important supplier of oil and gas to the global market”. Meanwhile, Wilkinson sketched out the prospects for a continued strong presence heading into and on the other side of the energy transition.

“Canada faces challenges and opportunities that are unique — our climate, our geography, our demographics and, certainly, our economy. Our climate action has to reflect that,” he maintained. “Canada is blessed with an abundance of natural resources that position us to be a global leader in clean energy. We have ample land for solar and wind farms, vast water systems for hydroelectric power, geological formations to sequester captured carbon, critical minerals for clean technologies, uranium needed for nuclear energy and, of course, significant traditional sources of energy.” zz T h e I n t e r n a t i o n a l E n e rg y A g e n c y ’ s Canada 2022 Energy Policy Review can be found at www.iea.org/reports/ canada-2022.

Canadian Property Management | July 2022 11

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IAQ: To say Indoor Air Quality (IAQ) has taken over the property management conversation would be an understatement. In the wake of the pandemic, the ability to maintain clean and hygienic indoor environments has become central to keeping occupants safe, comfortable and willing to remain in their spaces.

“Property operators have always prioritized indoor air quality to some extent, but now they recognize that it’s a top consideration for their occupants and the building’s operations,” says Tom Mannsfeldt, Senior Manager, Commercial Sales at Enercare Commercial Services.

It makes sense that IAQ is high on building occupants’ radars.

As the world returns to “normal”, many office workers, residents and building visitors alike are still anxious about sharing their office or living space without the heightened pandemic measures (e.g., masks, social distancing, etc.) that have been in place over the last two years.

TODAY’S PROPERTY MANAGEMENT PRIORITY As such, property managers are compelled to implement technologies and protocols that will ensure everyone who walks through their doors feels safe and comfortable.

“Naturally, the first goal of IAQ is to protect tenants and visitors in a time when risks of airborne illnesses are still very real. By doing so, however, you also address another goal of IAQ in property management, which is to keep building vacancy rates low,” adds Mannsfeldt.

A BREATH OF FRESH AIR Many factors contribute to poor indoor air quality within a commercial or multifamily building. Public spaces such as lobbies, meeting rooms and offices are prime territory for pollutants to be tracked in through the door or created by any number of activities (e.g., cleaning, equipment, cooking, etc.).

Left unchecked, these pollutants can take their toll on occupants. Here’s where taking several steps to clear the air can make a world of difference:

• Eliminate the sources: Bolstering IAQ begins with identifying and eliminating the sources of pollutants. For example, says Mannsfeldt, “If we know that harmful particulates are coming in through the front lobby doors, we can look at ways of minimizing that by, perhaps, installing an air curtain. Similarly, if we find out that certain cleaning processes are leaving harmful elements in the air, we can look at practices or technologies that can mitigate that as well.”

• Enhance filtration and fresh air delivery: Despite best efforts, there will always be the risk of airborne pollutants or illnesses.

At the same time, we can always use filtration and fresh air delivery technologies that will work around the clock to trap and eliminate harmful indoor elements and keep clean air cycling through the building.

Even still, adds Mannsfeldt, “We see a lot of buildings that

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have fresh air delivery already, but they’re either underperforming or not being maintained. In some cases, they’re turned off completely to save expenses, which is a problem because that means clean air isn’t being brought into the space.”

• Monitor your environment: Maintaining healthy IAQ requires visibility into environmental conditions. To that end, there are benefits to using IAQ systems with sensor technology that can monitor various air quality factors and provide real-time reports to building staff.

For example, says Mannsfeldt, “What we can do is come in, conduct a site audit, and use that data to map out an IAQ approach that works best for that particular space. It may be a building-wide approach, but it may be just certain areas more than others. Either way, we can map out what is needed and provide a report and action list detailing how to achieve an ideal IAQ.” This custom-made approach is essential, he adds, as it ensures that investments in IAQ align with the facility’s actual needs and budget: “If you’re going to spend money on the solution, you obviously want to solve the problem. And so that

IT TAKES A CUSTOM SOLUTION Healthy IAQ requires a tailored strategy. For this reason, there are advantages to working with indoor air quality specialists who can assess and address a building’s unique requirements.

QUALITY means targeting your pain points in a way that’s most effective and budget-friendly.”

SAFE, COMFORTABLE BUILDINGS Much has been said about IAQ in the wake of the pandemic, and for good reason. As the world returns to work, keeping workforces healthy and confident in their surroundings is critical to protecting lives and the bottom line.

ELECTRIFYING PROGRESS

Technology and Carbon Pricing Advance Fuel-Switching

By Barbara Carss CLIMATE, COST AND CAPACITY pose fuel-switching challenges for building owners looking to curb greenhouse gas (GHG) emissions in line with Canada’s target for a 40 to 45% reduction below 2005 levels by 2030. Industry panellists contemplating the electrification of mechanical systems during a recent Canada Green Building Council (CAGBC) conference in Toronto acknowledged that the leap to net zero comes with varying degrees of difficulty from region to region across the country.

For example, British Columbia’s lower mainland enjoys the twin advantages of a clean electricity grid and milder winter temperatures that generally don’t compromise the effectiveness of air-source heat pumps. Elsewhere, the arrival of new technologies and ongoing replacement of fossil-fuel-fired power generation with renewable sources are expected to ease the transition to low-carbon heating and domestic hot water systems, but that’s occurring on a patchwork of timelines.

A carbon price on pace to reach $170 per tonne by 2030 and the potential for other regulatory and investment-related

14 July 2022 | Canadian Property Management

imperatives are now reshaping conventional cost-benefit analyses. Yet, even as the commercial real estate industry is urged to readjust priorities from incremental improvements with quick paybacks to bigticket, deep retrofits, energy efficiency continues to be a preferred gateway to decarbonization for many companies pursuing emissions reduction targets.

“One of the goals along with heating electrification is to reduce the amount of heat we need. It seems like now we’re talking about carbon, carbon, carbon, carbon, but energy efficiency is still very much the first thing that we focus on,” affirmed Ariel Feldman, Director of Sustainability with Choice Properties REIT. “You still need to take all those steps first because, from the owner’s perspective, electrification is not necessarily going to pay back. You might spend more money up front and you might spend more money on the operations side. That’s not a very good business case to start from.”

That said, he maintains business cases should no longer be anchored in the supposition that a boiler has a 30-year life cycle. Speaking at the REMI Show in early

June, Jeff Ranson, Director of Energy, Environment and Advocacy with the Building Owners and Managers Association (BOMA) of Greater Toronto, hammered home the same message.

“If you’re comparing the cost of zero carbon with your current operating costs, that’s a false equivalency because your current building operations may not be possible in the future. Business as usual may not exist, and probably won’t exist,” Ranson submitted. “We’re not typically factoring in changes to the asset value whether or not your building is aligned with carbon targets.

We’re not factoring carbon pricing. We’re not factoring in policy risk.”

“The sticks are coming,” Steve Kemp, a principal with RDH Building Science, warned CAGBC conference attendees.

INCENTIVES AND OBSTACLES In British Columbia, there’s now one such stick intertwined with a carrot. Since the release of the provincial budget on February 23, 2022, the provincial sales tax (PST) on gas-fired heating and cooling systems has jumped from 7% to 12%, while heat pumps are now exempt from PST.

emissionsreduction “To qualify, it must be a heat pump for air-conditioning and heating, where your heat pump is your primary heating and cooling system,” said Pushpinder Rana, Senior Director, Commercial Products and Industry Relations, with Mitsubishi Canada’s HVAC division. “Those are huge trigger points, and we are seeing similar movements across Quebec.”

Kemp outlined some of the obstacles to adoption.

Notably, some air-source heat pumps employing variable refrigerant flow (VRF) technology function well down to temperatures of minus 30⁰ Celsius, but, predominantly, hydronic systems “go kaput” at about minus 15⁰ C, necessitating backup boilers in areas where the temperature falls below that threshold.

Because heat pumps circulate lowertemperature water — at about 49⁰ C versus 82⁰ C with boiler systems — a switchover will likely also entail replacement of space heating equipment.

“Whether it’s a fan coil, baseboard convector or radiant panels, at these lower temperatures, you need a bigger physical thing to deliver the same amount of heat to that space,” Kemp advised. “We may be gutting every baseboard convector, every fan coil in the building.”

Retrofitters are installing larger convectors and fan coils, multiple-row fan coils or fan-assisted baseboard convectors.

However, reinforcing Feldman’s argument for prioritizing energy efficiency, Kemp also cited an example of a major retrofit where his firm derived sufficient savings from building envelope improvements to cancel out such required investments.

“There, we basically cut the heating demand by 75% and theoretically could have kept the same mechanical system,” he noted. “Sometimes you can get lucky.”

In the future, hybrid hydronic-VRF heat pump systems are expected to improve coldweather performance and mitigate uncertainty around pending phase-downs of some hydrofluorocarbon (HFC) refrigerants.

(See story, page 28.) Rana sketched out a range of existing and emerging VRF heat pump and heat recovery products he predicts will increasingly capture market share, including hyper-heating technology for coldtemperature performance and a water-source format.

“There is a huge gap between what a heat pump or heat recovery solution provider can offer to the market and the understanding and the knowledge the market has,” he asserted. “We have training for consulting

AIR-SOURCE HEAT PUMPS ADDED TO TAX BREAK LIST Air-source heat pumps have been added to the list of clean energy equipment that qualifies for special tax treatment through Canada’s accelerated capital cost allowance (CCA) program. Businesses that acquire qualifying systems for indoor space heating/cooling or water heating between federal budget day on April 7, 2022 and December 31, 2023 will be eligible to deduct the full value in the first year of ownership.

Other clean energy equipment — which is designated in class 43.1 or 43.2 for CCA purposes — already eligible for accelerated deductions includes: ground-source heat pumps, including those used to heat swimming pools; active solar heating equipment; heat recovery equipment; photovoltaic electrical generation equipment; geothermal energy equipment; equipment related to district energy systems; electrical energy storage equipment; and electric vehicle charging equipment.

As announced in the 2022 federal budget, the following components associated with airsource heat pumps can be claimed: refrigerant piping; energy conversion equipment; thermal energy storage equipment; and control equipment and equipment designed to enable the system to interface with other heating and cooling equipment. Purchasers may also be able to be claim feasibility studies, engineering and design costs as allowable Canadian Renewable and Conservation Expenses (CRCE), which could be claimed in the year incurred, carried forward or transferred to investors.

“As a means to displace the use of fossil fuels for heating, or of providing a more efficient means of heating with electricity (e.g., compared to electric baseboard heaters), air-source heat pumps can play a role in reducing emissions of greenhouse gases and air pollutants associated with heating buildings in Canada,” the budget document states.

Concurrently, manufacturers of air-source heat pumps will be eligible for new tax credits, which were announced in the 2021 federal budget, but are available to claimants for the first time in 2022. That program provides a 50% reduction in the corporate tax or small business tax rate until 2028 for manufacturers of designated zero-emission technologies, with a continued tax credit at incrementally lower rates in the 2029-2031 period.

The budget document states that adding the new category to the original list of designated manufacturers — including those producing solar, wind, hydroelectric and geothermal equipment, as well as equipment related to ground source heat pumps, electrical storage of renewable energy, and electric vehicle charging systems — will “support job creation and growth in clean technology manufacturing in Canada”.

It’s estimated the Canadian government will forego about $53 million in tax revenue over five years by extending the two measures to air-source heat pumps.

– REMI Network

engineers. We have training for contractors.

The objective is to educate the market.”

Alternatively, geo-thermal systems promise consistent output everywhere the required wells can be accommodated.

“If you’ve got space on your site for geothermal, you can do it across the country and we’re seeing really good paybacks even on a 15-year assessment,” reported Cara Sloat, Senior Engineer with the mechanical and electrical engineering firm, Hammerschlag and Joffe. “It’s worth looking at that technology even if you’ve previously been worried that you can’t afford it. Some of the big banks are financing that now also, so that can take it off your project’s books and get it somewhere where it’s easier to deal with.”

STRATEGIES TO 2030 AND 2050 She suggests the timing is right to convert to a heat pump in any building with a cooling system approaching the end of its life cycle,

but also highlighted potential for capital planners to stretch the expenditure over a longer period.

“There are a variety now of quite good heat-only heat pumps on the market so you can get something that is optimized for heating only that would do your domestic hot water plant and directly replace a boiler,” Sloat said. “So maybe you do half the plant now and you think about phasing.

That is available.”

Meanwhile, a portfolio primarily consisting of open-air retail and industrial warehouse buildings has given Choice Properties more flexibility for a phased approach to its 2050 net-zero target.

Feldman projects rooftop HVAC units will need to be replaced at least twice in that period and, for now, that means dual-fuel gas and electric systems in some cases.

It’s an approach he aims to minimize given the extra costs of two systems, but it’s a necessary contingency to address concerns Canadian Property Management | July 2022 15

emissionsreduction WASHINGTON STATE MANDATES BUILDING ELECTRIFICATION Washington state is the first in the United States to incorporate building electrification mandates into statewide energy codes. Beginning in 2023, builders will be required to install electric heat pumps for heating and cooling in new commercial and multifamily buildings.

That comes with a last-minute amendment from the Washington State Building Code Council to establish that only 50% of water heating must be derived through electric heat pumps. There is also an exception for hospitals and research facilities.

The new rules leverage the state’s clean electricity grid for a projected 8 million ton reduction in carbon emissions by 2050. The updated energy code also includes improvements to building envelopes and other new efficiency measures.

“This stronger energy code is absolutely time-critical to continue to proactively move the design and construction industries toward achieving netzero carbon buildings,” maintains Todd Stine, a partner at ZGF Architects. “The market is already going there, but more clarity and support in policy and codes will be key for the building design and construction industries.”

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about pass-through utility costs to tenants and capacity of the electrical grid. The latter can be a particular vulnerability when landlords have little ability to control tenants’ energy use.

“That was a limiting factor at one of our sites where we decided, even though we would have ideally liked to go all-electric, we’re doing dual-fuel for now while the grid is improved,” Feldman recounted.

“We’re hoping with the next iteration in 15 years, we’ll go all-electric at that point.

We have a little bit more leeway than you have on a multi-unit residential building or an office where you’re replacing a boiler that lasts 30 years.”

“We find that trying to retrofit heat pumps into existing buildings with limited space for additional transformers is very challenging,” Sloat concurred. “Doing a study on a high-rise building, we saw we were adding maybe 3 megawatts to back it up with an electric boiler, which is the same as a whole new building.”

Regardless of complications, with a the carbon price now at $50 per tonne, Kemp calculates electric heat pumps are already more cost-efficient than natural gas systems in British Columbia, Manitoba and Quebec.

That pool should expand rapidly as the price takes its ordained trajectory to $170/tonne over the next eight years, and on up to possibly as high as $300/tonne by 2050.

By 2030, Kemp foresees Saskatchewan and Nunavut will be the only areas of Canada where fuel-switching may not be a money-saving proposition. Feldman concludes it’s best to get proactively ahead of that curve.

“British Columbia, Manitoba, Quebec, where the grids are clean and the electricity is relatively inexpensive, that’s where you want to focus at the start. Start with the ones that are a bit easier and then build your experience,” he urged. “As the technology improves and the supply chain improves and costs start to come down relative to the existing technologies, you will get to a point where it starts to look better and better in other provinces as well.” zz 16 July 2022 | Canadian Property Management

ADEPT PREP PRIORITIZED

Climate Change Adaptation Strategy in the Works THE CANADIAN GOVERNMENT is considering public input as it finalizes a national climate change adaptation strategy, scheduled for release this fall. A consultation process conducted earlier this spring and summer presents five action areas — disaster resilience, infrastructure, natural environment, economy, and health and wellbeing — identifies pressing priorities, set objectives for 2030 and 2050, and summarizes the resources and expertise that have already been mobilized.

“The national adaptation strategy is central to our work in preparing for climate emergencies,” maintains Bill Blair, Canada’s Minister of Emergency Preparedness. “It will allow us to better assess the risks as we monitor, respond to and recover from extreme weather events, while building resiliency in communities right across the country.”

The public was urged to respond to a number of questions posed in a discussion paper, which set out underlying principles and a proposed framework for the strategy.

Individuals and organizations had until July 15 to submit comments via email or directly through an online portal, and they were also invited to send descriptions, photos and/or videos of their own efforts to prepare for, or adapt to, climate volatility.

“Adapting to the many impacts of our changing climate feels like fighting a twofront war,” says Steven Guilbeault, Canada’s Minister of Environment and Climate

Change. “We can and we must do both mitigation and adaptation — play both offence and defence — for a complete effort.”

While extreme events — such as 2021’s notorious trifecta of record-breaking heat, forest fires and flooding in British Columbia — arise quickly, the discussion paper also tallies a spate of chronic climate-related conditions that undermine the strength and durability of natural systems, human and species health, infrastructure and key economic sectors. For example, melt i ng p er m a f rost dest abi l i z es infrastructure in the north; retreating glaciers deplete water resources in western Canada; and warmer seasons succour insect populations that damage crops and infiltrate the built environment.

Effective adaptation begins with recognizing this is occurring, then evading and finding ways to surmount impacts where possible, while preparing for those that cannot be avoided. The discussion paper extolls a systems-based approach to the five action areas, which brings a wide range of players together for collaborative problem-solving and incorporates learnings from academic, professional, technical and lived experience.

Data is central to the exercise. Adaptation strategists will rely on up-to-date scientific information about climate behaviour, risk assessment tools and ongoing monitoring of emerging applicable information. Objectives will be tied to reporting and evaluation

measures in order to monitor progress, and to identify successful practices and processes that could be replicated as well as outcomes that indicate that more support or a different approach is warranted.

Many of the proposed initial priorities reflect needs for baseline information, guiding regulations, human and technical resources and increased professional awareness.

That includes: continued development and sharing of information to advise communities of risks of climate-related disasters; integrating resilience considerations into building codes, standards and certifications; and promoting climate-related risk assessment and disclosure in strategic planning and financial decision-making.

Also tapped for quick rollout is an expanded network of trained responders and equipment for emergency situations, including climate events.

Discussion paper questions prompt readers to reveal their own priorities for climate response over the next five years, divulge how climate-related events and threats have affected them, and gauge their own safety, economic and health vulnerabilities, as well as potential access to supports. zz For more information about the Climate Change Adaptation Strategy see the government of Canada’s website at https://letstalkadaptation.ca/.

Canadian Property Management | July 2022 17

NET ZEROING IN Technology is On Target, Labour and Financing Less Certain A new report from the Canada Green Building Council and the Delphi Group reiterates that technology is the easy part of hitting ambitious targets for greenhouse gas emissions reduction. Building design and operations specialists typically know what to do and where to do it.

The greater challenges lie in financing and workforce capacity. The following is an excerpt – Editor.

CANADA’S GREEN RETROFIT economy is primed for significant growth over the next three decades and this growth can come with many benefits. These include: contributing to net-zero climate targets; making the built environment more resilient to climate change and extreme weather events; providing rewa rding job opportunities across many occupations and skill levels; and strengthening domestic supply of low-carbon products and services.

In order to realize this growth and 18 July 2022 | Canadian Property Management

associated benefits, the existing approach to retrofit projects will need to level up and transform to a more systematic ecosystem of aggregated project and investment opportunities. Building owners and managers will need expert support in developing and implementing transition plans to leverage building renewal cycles and market opportunities.

The good news is that many of the required technologies are available today and innovation is already happening in communities large and small across the country. There are three main technical

strategies that can serve as a starting point for transition planning and retrofit project development for most large building types in Canada: • reduce or replace fossil fuel use for space heating, mainly through electrification (including heat pumps); • implement measures to reduce energy demand; • incorporate on-site renewable energy systems.

DEEP RETROFIT PRIORITIES Large building retrofits represent significant

emissionsreduction

Given that the median age of commercial and residential building stock in Canada is about 40 to 50 years, there are significant opportunities to achieve GHG savings by focusing retrofits on the older building stock. opportunities to meet Canada’s climate target. CaGBC estimates large building retrofits could potentially reduce building sector emissions by 51%, representing about 21.2 million tonnes of carbon dioxide equivalent (CO2e).

The building typologies in scope for this study include multi residential, office, retail, logistics and hospitality. These typologies were chosen because they represent a significant portion of Canada’s existing large building stock and associated emissions.

Office and low-rise multi-residential buildings represent the largest share of the commercial inventory available for retrofit across Canada. Offices provide the most compelling business case for green retrofitting, as upgrades to these buildings can result in greater electricity savings and higher net present value (NPV) compared to other archetypes.

Given higher baseline energy usage, as well as energy intensive systems such as dual-duct or constant volume with reheat, office archetypes provide significant opportunities to gain energy savings and a logical place to start when prioritizing retrofit programs. Quebec and Ontario offer up the highest share of available floor space for retrofitting in Canada, indicating significant low-carbon retrofit opportunities.

The technical solutions available and professionals required for retrofit pathways are similar across the various building types, despite differences in building operation and performance systems.

Nevertheless, significant variation in priorities and sequences in retrofit measures arise with differences in electricity grid intensity and energy use.

Buildings with higher domestic hot water loads (e.g., multi-unit residential and hotels) or higher energy demand and plug loads (e.g., retail grocery and malls) will require different sequencing of retrofit measures t ha n t hei r less energ y-i ntensive counterparts. For buildings in regions that

have more carbon-intensive electricity grids, there may need to be a greater emphasis on achieving emissions reductions through electrical demand reductions as compared to regions with low-carbon grids, where greater emphasis will be needed on space heating electrification measures.

Given that the median age of commercial and residential building stock in Canada is about 40 to 50 years, there are significant opportunities to achieve GHG savings by focusing retrofits on the older building stock. The vintage of a building is a marker of the amount of thermal leakage and the associated cost of heating. The older the building, the less energy efficient it is likely to be.

Buildings built in 1970 and earlier are at the key stages of their renewal cycle for critical mechanical and enclosure systems, which enables a business case for wholebuilding retrofit projects. The replacement of HVAC distribution systems, windows and opaque enclosures typically yields best returns when buildings are at least 40 years old, making 1980 an expedient vintage threshold to capture the building stock at its prime renewal stage.

A breakdown of Canada’s inventory finds the vintages 1960-1980 and 19802000 account for about 60% of the commercial building stock. This pattern is seen in most provinces except Atlantic Canada and Quebec, where a greater share of existing buildings were built during the 1960 to 1980.

WORKFORCE REQUIREMENTS It’s expected electricians, contractors and HVAC trades (plumbers, gasfitters, steamfitters, pipefitters, and air-conditioning mechanics) will be in highest demand in a workforce of deep retrofitters. Several key occupations in the green retrofit workforce are already projected to face a significant supply deficit in the coming years. A scarcity of these occupations could be a substantial obstacle to meeting retrofit targets.

The following retrofit occupations are likely to see a supply shortage (at a national level) in the near term, even without factoring in a scale up of retrofit projects: carpenters; steamfitters, pipefitters and sprinkler system installers; plasterers and drywall installers; refrigeration and air conditioning mechanics; and mechanical engineers and technicians.

Specific skills required to support green retrofits include hands-on skills, project approaches and procedures, familiarity with new products and technologies, and a general grasp of efficient building systems.

While these abilities are obtained through a variety of training techniques and educational pathways, on-site practical experience and mentoring are particularly significant training mediums for tradespeople.

The current training landscape is based on established construction industry standards that equip professionals to fulfil market demands. As retrofit activity increases, training pathways will need to adapt to meet evolving standards for building performance in terms of carbon reduction and energy efficiency.

A review of relevant training initiatives indicated a shortage of green retrofit courses and programs, particularly outside of major urban centres. The majority of the programs are voluntary, with limited certification being awarded or established learning objectives.

Existing offerings are limited to subjects such as energy efficiency and renewable energy and are typically delivered by un iversit ies, i ndust r y a nd t rade associations, non-profit organizations, and specialized training centres. Highp e r fo r m a n c e b u i l d i n g p r o d u c t manufacturers also provide important training and guidance for designers and tradespeople, while labour unions provide green building skills to their members, many of which are applicable to large-scale building retrofit projects.

Canadian Property Management | July 2022 19

emissionsreduction The current green building training options for designers, consultants and tradespeople vary greatly. Post-secondary green building courses and programs are generally designed for engineers, architects and other building professionals, with the exception of a few programs designed for tradespeople.

Most energy efficiency and green retrofitrelated training options do not receive continuing professional development (CPD) credits, which can reduce their value to professionals. Due to the periodic review and approval cycle of new apprentice curricula, many programs are slow to incorporate emerging green building practices.

SUPPORTING SCALE As the retrofit market grows, there are services needed to support low-carbon renovations at scale. These include models for aggregation and standardization, as well as monitoring and verification.

The investment thresholds, costcompression and climate imperative require the market to consider how it can identify and aggregate multiple projects for financing. For example, the minimum threshold for the Canada Infrastructure Bank’s Commercial Building Retrofit

20 July 2022 | Canadian Property Management

Initiative is $25 million. An investment this size would be typical of at least 25 projects.

Models for aggregation are emerging and include portfolio-wide approaches by large commercial owners. They may undertake a horizontal aggregated approach whereby they bulk purchase a key technology such as lighting or heat pumps and apply it across their buildings.

A second aggregation approach could be brokered by turnkey providers such as: energy services companies (ESCOs); engineers and contractors; municipalities through C-PACE (commercial property assessed clean energy); utilities through o n - b i l l r e p ay m e nt ; t h i r d - p a r t y investment vehicles; or proper ty management firms. In these scenarios, projects are identified and collected from multiple owners and on-boarded through a unified process.

For example, an ESCO mitigates the technical and performance risks by designing and implementing retrofit interventions that provide a financial guarantee to project lenders/owners that the energy savings generated will cover the debt service.

A super ESCO is an organization that is capitalized by government and private

sector investors to secure retrofit projects and service them through a network of ESCO delivery partners. As a project aggregator, they also help overcome barriers to retrofits by launching calls for tenders on behalf of clients, supporting training activities for the industry and taking on financial as well as technical risks to eliminate financial barriers for ESCOs in the private sector.

Standardization, monitoring and verification services help owners to identify pathways to secure emissions and energy savings in alignment with financing requirements and climate targets. Canada Infrastructure Bank requi res I nvestor Ready Energy Efficiency certification to standardize the retrofit planning process and verify the planned savings — setting up the project for monitoring and verification upon completion. These approaches are reliant on engineering services such as energy modeling, as well as data collection and reporting post-project completion. zz The complete text of the Canadian Green Retrofit Economy Study can be found at www.cagbc.org/news-resources/ research-and-reports/retrofit-economy/

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KEEPING WATER AT BAY WITH

PROPTECH Tech to the rescue As with any property management risk, prevention is key. Herein, advances in water monitoring and leak detection systems give building management teams the ability to spot and respond to water damage risks the moment they begin to form. This proactive approach is critical for reducing losses and giving tenants a heads up.

“The sooner you can respond to water damage, the better,” says Murphy. “That’s why the best systems are those that alert the right people to problem areas quickly so that you can avoid costly remediation, longer disruption to services, and increased operational costs and efforts.”

For its part, First Onsite has formed partnerships in the tech community to offer solutions for 24/7, real-time water monitoring and analytics. This includes devices that can be installed in strategic locations to detect leaks the moment they occur and send alerts via text, e-mail or phone call to the appropriate internal and external responders. Solutions also include smart sensor technologies that monitor when water consumption patterns or humidity levels fall outside of acceptable ranges.

The data collected from these technologies can also be used to generate automatic graphs and reports that can then be used to identify areas for improved

W

Water damage is among the most common (and costly) issues in property management. From leaky pipes to foundation cracks, roofing tears to envelope holes, there are plenty of opportunities for water to wreak havoc. However, like many property management challenges, a mix of modern tech and proactive strategies can turn the tide.

“Water damage affects buildings on so many levels and can happen anytime,” says Brendan Murphy, Director of Client Solutions with First Onsite Property Restoration.

“In fact, nearly 70 per cent of the emergencies we respond to are a result of property damage caused by water-related events.”

Those events can be large-scale weather events, such as floods, thunderstorms, and hurricanes. They can also be hidden or “easy to miss” leaks that cause extensive damage to properties over a period of time.

Moreover, untreated water damage can trigger the growth of harmful mould that puts building occupants at risk.

efficiency, spot abnormal trends, or even benchmark water consumption across an entire portfolio.

“The technology does more than bring attention to potential emergencies; it provides that continuous flow of real-time water usage data that enables building teams to see where they’re using the most water and take appropriate steps,” adds Murphy.

The conservation advantage Properties of all kinds are always prone to water damage. The good news is that property teams have access to the technologies and expertise to catch issues at their source and practice smarter consumption at the same time.

First Onsite Property Restoration is one of the largest and fastestgrowing emergency response planning, mitigation, and restoration service providers in North America.

To learn more about water monitoring proptech, contact Brendan Murphy, Director of Client Solutions, at bmurphy@firstonsite.ca. For more, visit firstonsite.ca.

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UNLOCK

FREE BUILDING ENERGY WITH AI There’s free energy to be harnessed from every building. The trick is taking advantage of thermodynamics through artificial intelligence (AI).

It may sound like science fiction at first, but the idea has been around for decades. Since the 1970s, academic researchers have been fine-tuning the process of using a building’s natural thermal mass to influence internal temperatures. And today, one company out of Halifax is bringing the benefits of that research to help building operators achieve more efficient, eco-friendly, and cost-effective HVAC operations in the form of an AI solution.

That company is EcoPilot Canada | USA, a proud “carbon crusader” that uses AI-driven software of the same name to optimize HVAC systems in real-time to deliver the greatest energy efficiency possible.

“Think of it as a brain that can be added to any building automation system to unlock this free energy that’s always been there,” says Jennie King, Commercial Director with the Halifax-based company.

HERE’S HOW IT WORKS Ecopilot®’s program constantly monitors a building’s static (e.g., thermal mass) and fluid elements, the latter

of which include internal heat sources (e.g., people, computers, and lighting) or external weather (e.g., temperatures, wind speed, humidity, solar incident radiation, etc.). Every two minutes, the AI then analyzes these factors along with predictive data (e.g., weather forecasts) to calculate the variable balance point temperature of a building.

Pinpointing that specific balance point temperature is step one. Next, Ecopilot® shares that number with the building’s existing BMS system, where it is used to align prescribed HVAC set points so that they react with the real-time balance point temperature. Doing so reduces HVAC fluctuations and eliminates unnecessary system overlaps, such as heating and cooling an environment in the same day or at the same time.

“Essentially, Ecopilot® uses all this real-time data to continuously re-commission the HVAC system every two minutes,” explains King. “The result is that these systems start running far more efficiently, use less energy, and reduce their carbon emissions – all while keeping people a lot more comfortable.”

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Implementing AI into MINTO’s BAS seemed like a leap at first, she adds, but the outcomes have alleviated any doubt: “As we move towards low-carbon technology and attempting to minimize greenhouse gas emissions, it becomes more important to operate the equipment as efficiently as possible. Smart building technologies bridge the gap between design and actual operating efficiency.”

Success stories like MINTO’s are adding up. Over its 13plus years, Ecopilot® has seen its system installed in over 1,200 buildings worldwide, improving building efficiencies by up to 40% annually with a three-year ROI.

PROVEN IN THE FIELD Ecopilot® has spent over a decade bringing its AI tech to property stakeholders across Canada and the world. And while King admits there can be some upfront hesitation to bringing AI into building operations, those that make the upgrade are quick to reap the rewards.

In June 2018, for example, Crombie REIT’s Cogswell Tower, a 50-year-old concrete office building in Halifax implemented Ecopilot® to help save energy across its 14-storey, 200,000 sq. ft. asset. Doing so reduced energy costs by 26.5%, generating a return on their investment under two years. Moreover, Pat Poirier, Manager of Engineering and Sustainability, reported they had reduced energy consumption by over one million kWh, exceeding their expectations for their entire campus of buildings.

More recently, MINTO PROPERTIES implemented the tech at a multi-unit residential property at 150 Roehampton Ave in Toronto. Speaking to early reservations, Joanna Jackson, Director of Sustainability & Innovation at MINTO PROPERTIES, recalls: “We were concerned about not achieving the expected energy savings. However, Ecopilot®’s minimum savings guarantee ensures that the project will be successful from a financial perspective.”

Fast forward to now, and Jackson reports that the Ecopilot® system has succeeded in optimizing the building’s operations and reducing its electricity and natural gas consumption, noting, “The system also identifies if the equipment is not operating properly. That allows us to react faster to maintenance issues and improve residence satisfaction by minimizing system down-times.”

UNLOCKING THE ENERGY WITHIN AI and smart machines are recoding virtually every facet of property management. Ecopilot® is among the innovations merging established building science with cutting-edge tech to create future-ready assets.

Learn more about Ecopilot. Visit www.ecopilotai.com.

BUMPY MARKET INROADS

Many Green Technologies and Products Still Carving Out Customer Base

A NEWLY RELEASED examination of deep retrofit logistics finds that few of the existing technologies projected to help dramatically curb greenhouse gas (GHG) emissions have yet conquered their market categories. The study from the Canada Green Building Council (CAGBC) and the Delphi Group assesses 27 strategic building products and systems for availability, affordability and degree of adoption within the industry, and concludes that only eight figure positively for all three of those considerations.

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“In this moment of supply challenges a n d cl i m a t e c r i si s , t h e r e i s a n opportunity to redefine the building s e ct o r by sh i f t i ng ou r fo cu s t o sustainable building technologies and products,” the study authors maintain.

“There are clear technical interventions needed to achieve energy and carbon reductions in Canada’s building stock.

The readiness of key technology and products will inhibit or accelerate the market’s capacity to undertake green retrofits.”

Electrical and mechanical equipment have made greater progress toward being the status quo, while more obstacles to market penetration are noted for building envelope technologies and renewable energy systems. The eight products already enjoying wide uptake include: LED lighting products; lamps and ballasts; premium efficiency motors; variable air volume (VAV) systems; airside economizer damper controls; modulating burners; demandcontrolled ventilation; and distribution system insulation.

emissionsreduction PRIORITY ROLLOUTS The study reiterates that market awareness, a steady supply chain and competitive pricing will be needed to encourage the rollout of low-carbon technologies on the scale required to achieve emissions reduction goals. It also calls for a priority focus on six key technologies identified as “having greater relevance on the future of building improvements”.

These are: • building automation systems (BAS); • heat pumps; • heat and energy recovery systems; • wall recladding systems; • building integrated photovoltaics (BIPV); and • energy storage.

Heat and energy recovery systems are deemed to have the narrowest gap to close.

The assessment concludes that the industry has a good grasp on how to specify, install and operate the technology and that it is readily available in Canada, but that it still comes at a moderately higher price than conventional alternatives. Currently, the systems — which can extract waste heat from ventilation systems, chillers, hot water drains and/or sewage — are more typically a feature of new construction than retrofits.

Cost and requirements for a certain level of operational proficiency are considered the main impediments for building automation systems, which optimize performance through the smart integration of multiple systems, including HVAC, lighting and security. Meanwhile, the study contends the North American market is far from embracing the full potential for heat pumps, which come with some cost hurdles and other complications for retrofit projects.

“Air-to-water and cold climate air-source heat pump technology do exist but the number of options available in the North American marketplace is still very limited.

High-efficiency electric technology for central domestic hot water applications is less widely available, especially for larger commercial and institutional applications,” it states. “In the case of retrofits, the installation of heat pumps may also be reliant on drilling wells in parking lots which require skills and equipment that is not widely accessible.”

Of the remaining key technologies, energy storage and BIPV rank somewhat higher for industry familiarity than wall recladding systems, but all three struggle with cost and availability factors.

In a rare example, wall recladding was a major contributor to last year’s Passive

Market awareness, a steady supply chain and competitive pricing will be needed to encourage the rollout of lowcarbon technologies.

RESEARCHERS BRAINSTORM TOWERING ENERGY PROSPECTS The ever-ascending heights of its building stock potentially positions Toronto to produce and store gravitational energy. The concept is still highly theoretical, but researchers with the International Institute for Applied Systems Analysis (IIASA) suggest elevators could present an option for generating a small but steady supply of sustainable power to augment battery storage and intermittent renewable sources.

In a recently published paper in the academic journal, Energy, they sketch out the broad elements of what they’ve dubbed lift energy storage technology (LEST).

Gravitational energy is most commonly a source for centralized hydroelectric generation, where above-dam reservoirs are the storage receptacle. LEST is decentralized and on a much smaller scale, but embodies the same basic principle in which energy is stored within a mass as it is lifted upward and then released from the mass as it falls downward.

As envisioned, it would rely on: a regenerative braking system in elevators; up and down transport of containers holding a dense storage material such as sand or stone; storage areas at the top and bottom of the building; robots to transport the storage containers; and a software-based operating system.

The greater the distance between the top and bottom storage areas, the greater and more cost-effective the system capacity. IIASA researchers project the global storage potential at 30 to 300 gigawatt-hours and identify Toronto as one of a handful of North American cities where it would be most feasible.

They estimate the cost of installed capacity energy storage at USD $128 per kilowatt-hour (kWh) where the distance between the top and bottom storage areas is 50 metres. That drops to USD $62/kWh if the distance stretches to 100 metres and USD $21/kWh at 300 metres.

Among the logistical considerations, the upper area would have to bear the load of the weighty storage containers. “It is rather unlikely that buildings in the past have been designed with the idea that they might serve as energy storage facilities in the future,” the paper acknowledges.

However, the researchers suggest that robots would have the capability to manoeuvre the containers to counterbalance swaying in high winds or earthquakes. As for the potential disruption of robots moving the containers in and out of elevators, IIASA researchers frame it as an opportunity for building owners to derive value from an existing structural component that frequently isn’t in use.

“Policymakers and power system regulators need to adopt strategies to incentivize end users, in this case, high-rise buildings, to share their distributed storage resources, such as LEST, with the central grid,” urges Behnam Zakeri, a coauthor of the study and a researcher with the IIASA’s Integrated Assessment and Climate Change Research Group.

“Environmentally friendly and flexible storage technologies like LEST are set to become more and more valuable to society in a future where a large share of its electricity comes from renewables.”

More information about the research paper, Lift Energy Storage Technology: A solution for decentralized urban energy storage, and the International Institute for Applied Systems Analysis can be found at https://iiasa.ac.at.

– REMI

Canadian Property Management | July 2022 25

emissionsreduction House certification of the Ken Soble Tower, an aging building in the City of Hamilton’s subsidized housing portfolio and the largest residential building in the world thus far to be retrofitted to the Passive House standard.

“Wall cladding involves laying material over another material to form a ‘skin’ on the walls to increase efficiency. Wall recladding systems are not widely available and can be expensive. They are not in use across the industry despite being associated with substantive carbon and energy savings,” the deep retrofit logistics study affirms.

Related to the building envelope, BIPV are solar power generating products or systems incorporated into facades, roofs and/or windows. They are reportedly experiencing “substantive market growth in Europe and the United States” but are seldom seen in Canadian retrofit projects.

Energy storage is considered instrumental to peak demand management, the transition to renewable power sources and climate change resiliency — allowing for offloading from the electricity grid or providing backup power. For now, the deep retrofit logistics study deems it is “not yet widely available or cost-effective in the Canadian marketplace”.

26 July 2022 | Canadian Property Management

LIFE CYCLE FACTORS Other building products and technologies identified as having made few inroads in market awareness, availability and affordability include: high-efficiency curtain walls; roll-up receiving doors with high R-value; and hybrid wind and photovoltaic renewable energy systems.

Ther mal break technology and energy-efficient windows and doors are deemed widely available, but still pricier than conventional alternatives and lacking industry uptake. Perhaps more curiously, reflective roofs are flagged as affordable and widely available, but still short on industry buy-in.

Aside from heat pumps, electric highefficiency domestic hot water is the only mechanical technology where analysts conclude across-the-board improvement is needed in awareness, availability and affordability. Electric vehicle chargers are similarly characterized among electrical equipment.

In large part, green building specialists link the varied pace of industry uptake to the likewise diverse life cycles of building systems and components.

While it’s a certainty that some equipment will be replaced multiple times before 2030 or 2050, there will be far fewer opportunities to invest in other technologies.

“Different parts of the building last different lengths of time and you have to look for these natural inflection points of when the boiler is actually due to be replaced, the windows are due to be replaced, the roof is due to be replaced,” Steve Kemp, a principal with RDH Building Science, told attendees at the CAGBC’s recent annual conference in Toronto. “Wall systems last a long, long time so we may not be getting all buildings replacing their walls in time to help us make these targets.”

T hat sa id , he welcomes new technologies and products.

“We have equipment gaps,” Kemp advised. “We need kit for repurposing existing buildings.” zz For more information about the Green R etrofit Economy Study, see the Canada Green Building Council website at www.cagbc.org/news-resources/researchand-reports/retrofit-economy.

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Costa advised that he no longer wished to occupy his role as president. The emergency meeting took place at the defendant’s (MTCC 1292’s) premises.

At the emergency meeting, the plaintiff and Mr. Da Costa entered into a heated argument, which led Mr. Da Costa to “lose it” and strike the plaintiff on the head with a chair. Mr. Da Costa was charged by the police and received a conditional discharge for assault with a weapon. iff commen The plaintiff commenced a civil action against Mr. Da Costa fo for his use of force as well as MTCC TCC 1292 for fo failing to ensure her safety and nd failing to employ security meet measures at board meetings.

MTCC 1292 brought a motion summary judgment otion for su to dismiss the plaintiff’s plaintiff’ claim against it nly opposed by Mr. Da Costa which was only given his crossclaim MTCC 1292 ossclaim against ag on and indemnity. inde for contribution

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In Omotayo v. Da Costa, 2018, the defendant occupier, Metro Toronto Condominium Corporation 1292 (MTCC 1292), was successful in dismissing the plaintiff’s claim and the assailant’s crossclaim when a member in attendance at a condominium board meeting struck another meeting attendee with a chair.

Justice Nishikawa found that the duty the condominium corporation owed to the plaintiff did not include preventing an assault that occurred during their condominium board meeting.

Facts of the case T he plaintif f, J ac queline O mot ayo, was a resident and former chair of the condominium corporation. The defendant, Jose Da Costa, was also a resident and former president of the condominium corporation. An emergency board meeting was held on Oct. 4, 2011, to discuss the future organization of the board as Ms. Omotayo had recently been removed from her position as chair and Mr. Da

By Steven Chester

SERVING THE FACILIT Y CLE ANING & MAINTENANCE INDUSTRY

Let’s face it, we all want our businesses to be social media rock stars, and we know it ain’t easy.

It’s becoming more prevalent that some of the most popular social media platforms have been infiltrated by those who game the system.

This includes those that buy fake followers and “likes” in order to create the illusion that their social media profile is more popular than it is.

These fake followers are predominantly bots – accounts run by software designed to look and act like real people.

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New services are also popping up that allow authentic social media accounts to become part of the bot game. By signing up for the service, the user authorizes their account to automatically like, follow and randomly comment on other users’ posts, and in turn they trade that fake engagement with other users. Sound harmless enough? The thing is you have no say in in the message your account is spreading or where it ends up.

CARING FOR FRAGILE FLOORS

Summary judgment motion udgment m positi MTCC took the position that its duty w is confined confine to the physical under the law condition of the premises premise and foreseeable e unforese risks, not the unforeseeable conduct of individuals in attendan attendance. Meanwhile, Mr. Da Costa that MTCC 1292’s a argued th s to having rules of conduct duty extends s, policies re for meetings, relating to abusive l an gu a g e, thre at s aan d intimid atin g d a duty to h behavior, and hire and supervise competent professional professionals to oversee its luding, if appropriate, ap business (including, security Cos further argued personnel). Mr. Da Costa ult was foreseeable fore that the assault given the M quarrelsome nature of MTCC 1292’s board nd a prior unrelated u meetings and incident involving the plaintiff and another member of MTCC 1292 wherein the police was 292 wherei called. ng her dec In reaching decision, Justice Nishikawa looked Coleiro v. Premier ooked to C s where summary sum Fitness Clubs judgment d in favour of the defendant was granted

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Ask yourself this: What’s more important, having 50,000 cosmetic followers, or having

500 followers who are in your target market REMEDYING FOUR that actually want to hear from you?

COMMON CARPET As a consumer, it’s even simpler, as PROBLEMS deceptive tactics are easy to spot. If you’re using underhanded methods to promote your business, this can be viewed as a reflection of your product or service. Your integrity is at stake.

This is one of the more complex topics that can’t be fully covered in this space. As always, I invite you to stay social and continue the conversation on Twitter at @Chestergosocial where I’ll share a link to the full article.

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SUCCESS Steven Chester is the Digital Media Director of MediaEdge Communications. With 15 years’ experience in cross-platform communications, Steven helps companies expand their reach through social media and other digital initiatives. To contact him directly, email gosocial@mediaedge.ca.

www.REMInetwork.com | June 2018 15

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By Barbara Carss REGULATORY LETHARGY around moderately flammable refrigerants is dousing policy intent to reduce reliance on products with high global warming potential (GWP). That could also be undermining efforts to encourage electric heat pump options in place of gas-fired heating and domestic hot water systems.

With significant steps in a global phasedown of hydrofluorocarbons (HFCs) looming this decade, researchers and manufacturers have now done much of the work to comply, but codes and standards will need to catch up before a new generation of lower-GWP refrigerants can be used.

Speaking at the recent Canada Green Building Council (CAGBC) conference in Toronto, green building specialists acknowledged this element of uncertainty in what’s otherwise considered one of the most effective paths to fuel-switching through a variable refrigerant flow (VRF) system for heating and cooling.

For now, those systems employ R-410a, an HFC with a GWP of 2,088, while the anticipated lower-GWP replacement option — R-32 (GWP 675) — is classified as A2L on ASHRAE’s scale of flammability and toxicity. It’s a category that is gaining acceptance with standard developers and health and safety regulators, but at a differing pace across worldwide jurisdictions.

28 July 2022 | Canadian Property Management

“The next three to four years are very critical,” advised Pushpinder Rana, Senior Manager, Commercial Products and Industry Relations, with Mitsubishi Canada’s HVAC division, who also chairs the technical committee of CSA B52, the Mechanical Refrigeration Code. “Currently [in Canada] you cannot sell A2L for any institutional application, and it’s inside of three kilograms for residential and 10 kilograms for commercial application.”

“We’re at an inflection point where I’m quite cautious with VRF because R-410a is something that is a little bit dicey if built into a building,” observed Cara Sloat, Senior Engineer with the mechanical and electrical consulting engineering firm, Hammerschlag and Joffe. “R-32 is the flagship refrigerant that will replace R-410a so once that rolls out, if you have a VRF system at end-of-life, you’ll be able to replace the terminal units, but keep the piping.”

Other options such as hybrid hydronicVRF systems, which could reduce refrigerant requirements, are expected to make a market impact relatively soon. Still, it’s considered too early to shut down any possible avenue to emissions reductions, especially when there is a high degree of certainty in the HVAC industry that A2Ls can be used safely. Rana urged all stakeholders to keep talking.

“Personally, I feel there is a lot of disconnect between people who should be connected. This has to be an ongoing effort where people are connected and they are educating the market how we should transform,” he maintained.

HFC PHASE-DOWN Under the parameters of the phase-down, Canada and other developed nations that are signatories to the Kigali Amendment of the Montreal Protocol are slated to reduce production and consumption of HCFs by 40% relative to the average from the baseline years of 2011, 2012 and 2013 as of 2024.

Production/consumption is to be curbed by 70% by 2029 and by 85% by 2036.

However, the path for doing so is yet to be clearly established. A prohibition on the use of HFCs with GWP greater than 750 in chillers is set for January 1, 2025, along with a prohibition on HFCs with GWP greater than 2,200 in mobile refrigeration systems used in transportation.

Thus far, there are no deadlines for stationary air-conditioning or VRF systems, but it’s expected that Canada may adopt the schedule recently announced in the United States.

If that’s the case, manufacturers would not be able to sell new VRF systems that use R-410a as of January 1, 2027. Like the phase-

emissionsreduction out of chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs) before this, a diminishing supply of the refrigerant would still be available to service existing systems.

Speaking in an online forum sponsored by Efficiency Canada earlier this year, Rusty Tharp, Senior Director, Regulatory Affairs, with the HVAC provider, Goodman Manufacturing, traced the trajectory of A2L refrigerants’ emerging acceptance for use in buildings. This has followed what he deems a conventional revisionary path from updated product safety standards, on to application standards and then into model codes — all enfolding with rigorous testing, risk analysis, expert input, stakeholder consultation and an eye to experiences in other jurisdictions.

“R-32 has been pretty much adopted globally and some countries have been using it for a full decade at this point,” he said.

The moderately flammable designation means that A2L refrigerants neither ignite easily nor burn rapidly. Tharp further reiterated that the combination of a leak, oxygen and an ignition source would be required for that to occur.

Meanwhile, researchers with his company have concluded that GWP differentials are wider than the face-value numbers indicate.

“With R-466a, typically speaking you need about 10 to 15% more refrigerant for the same efficiency as using 410a,” Tharp submitted. “When you look at R-32, because it needs less refrigerant — and it can be anywhere from 10% less to 30% less, depending on the type of system and technology used — the net impact is significantly lower.”

DISCORDANT STAGES Rana stresses the importance of smoothing out discordant rules in Canada and the U.S. to embrace the new allowances for A2L emerging in standards like ASHRAE 15.

Otherwise, purchasers in Canada could see their options dwindle as U.S.-based manufacturers cater to the larger market share at home.

“For the manufacturer, it’s a huge undertaking to convert. Nobody can carry two lineups: R-410a for Canada; and R-32 for the U.S.,” he warned.

On the contractor side of the equation, the Heating, Refrigeration and Air-conditioning Institute (HRAI) of Canada is confronting a piecemeal regulatory outlook in its attempts to develop online safety training. Caroline Czajko, HRAI’s Director of Environmental

“For the manufacturer, it’s a huge undertaking to convert. Nobody can carry two lineups: R-410a for Canada; and R-32 for the U.S.”

Services and Divisions reports that manufacturers have been identified as the most practical program sponsors, at least initially, given the lack of cohesive governmental direction and the provinces’ varying progress on adopting the most up-todate codes and standards.

The association is preparing to launch proactive training on safe handling, storage and transportation of low-GWP refrigerants, ahead of their arrival into Canada. The program will be similar to the certification the ESCO Institute offers to HVAC and refrigeration technicians in the United States, and responds to industry demand for a consistent approach to training across all

provinces. Indeed, many HRAI members participating in a stakeholder consultation also expressed a preference for mandatory certification.

“Not too often do you hear that from contractors — that they want more regulation,” Czajko muses. “A2L product is not being imported into Canada yet, but we’re following all of the trends, which we’ll have in the training. Several U.S. states are allowing it and manufacturers there are requesting that contractors who are installing their equipment take the course that’s being offered by ESCO. We want to roll out this training sooner than later for the benefit of the installers.” zz

ALLIANCE TARGETS WOMEN FOR COOLING SECTOR JOBS A global alliance of industry associations has joined with United Nations Environment Programme (UNEP) OzonAction and the World Refrigeration Day Secretariat in an effort to steer more women into cooling sector jobs. The International Network for Women in Cooling (INWIC) plans to provide mentoring and promote role models to encourage career candidates, and their potential employers, to consider opportunities related to refrigeration, air-conditioning and heat pumps.

“We enthusiastically support efforts to expand the landscape for women to participate fully in the research and development of emerging cooling technologies,” affirms Mick Schwedler, 2021-22 President of ASHRAE, one of the 11 industry organizations involved.

The initiative aligns with the United Nations’ sustainable development goals for: equality of opportunity for women; quality of life improvements thorough job creation and more sustainable urban environments; and climate change adaptation and mitigation. INWIC is also envisioned as a forum for promoting environmental best practices for refrigerant management.

Participating organizations will begin rolling out programs throughout 2022. That includes increasing the visibility of women already holding cooling sector jobs through videos and other reporting on their experiences and aspirations.

“Women represent a tremendous, largely untapped source of innovation and skills for this sector, and they need to be actively engaged if we are to solve the great environmental challenges of our time,” observes James Curlin, head of UNEP OzonAction. “INWIC seeks to do just that.”

– REMI Network

Canadian Property Management | July 2022 29

conservationbehaviour

CONVINCING EVIDENCE

Comparative Energy Scores Could Sway Renters’ Choices ACCESS TO COMPARATIVE energy scores could sway prospective renters’ evaluation of available apartments. Newly released study findings from the American Council for an Energy-Efficient Economy (ACEEE) show a 21% increase in traffic to the most energy-efficient units when scores appear on all rental listings, whereas there is little discernible uptick in interest when information is displayed only for the bestperforming units with no comparative context.

Results of the controlled experiment, involving 2,455 participants considered to be roughly representative of the U.S. population, also indicate prospective renters were more willing to consider units with higher rents if they were attached to better energy scores.

That trend was most noted among those younger than 45 and/or who lived in the country’s hottest or coldest climate zones.

Meanwhile, there was no significant difference in prospective tenants’ preferences related to income or education levels.

“Our experiment showed that if renters have that [comparative] energy cost or efficiency rating, it’s absolutely going to

affect their choices,” submits Reuven Sussman, lead author of the accompanying report and Director of the ACEEE’s behaviour and human dimensions program.

“It may also nudge landlords to make their buildings more efficient.”

The study, known as a discrete choice experiment (DCE), used a mock website that generated listings in response to participants’ specifications about rent range and other amenities. These were presented in various formats, including: with no energy scores; with scores only for the best performing units, which is reflective of the general experience of voluntary energy-use reporting; and with minimal to greater context for interpreting scores and their meaning for energy costs.

In doing so, researchers aimed to glean evidence to help determine: • whether energy-efficient units get more attention when information about energy efficiency is available; • which formats for imparting information increase prospective renters’ willingness to pay for energy efficiency;

ALBERTA DELIVERS EXCLUSIVE RELIEF Rental apartment and condominium dwellers with sub-metered suites aren’t eligible for Alberta’s six-month electricity rebate. Although the provincial Associate Minister of Natural Gas and Electricity maintains the rebate is meant to “help reduce the financial burden that many families in Alberta are dealing with due to the rising cost of living,” consumers must have a direct account with a utility to receive the promised $50 discount on their hydro bills from July to December 2022.

Multifamily landlords or condo corporations in sub-metered buildings will be eligible to receive the rebate for electricity consumption tied to the building’s common elements if total usage has been less than 250 megawatt-hours (MWh) over the previous 12 months. Since bulk metered multifamily buildings are likely to exceed the 250 MWh annual threshold for consumption, few landlords and condominium corporations will receive relief in that scenario.

30 July 2022 | Canadian Property Management

• which renter demographics place greater value on energy efficiency; and • how renters’ responses compare to previous research findings about homebuyers.

As a qualifier to their findings, the researchers acknowledge the mock website’s limited number of choices versus the wider and more detailed selections apartment-seekers would typically find in real rental listings.

However, they conclude energy scores are particularly effective when they are presented in tandem with the unit’s monthly energy costs, and along with a continuum of average energy costs for comparable units in the geographic region pegged to a range of energy scores.

In such cases, prospective renters were willing to entertain rents that were more than 2% higher for each increment of improved energy score. Even with fewer details, on average, prospective renters were willing to pay an extra 1.8% in rent per increment of improved energy score.

Based on a current average rent of USD $1,877, ACEEE resea rchers hypothesize landlords could realize a revenue gain of USD $405 per unit for each gradient of improved energy performance on a 10-point scale.

“This value could go up to as much as $520 with some labels,” they observe.

“Furthermore, many cities have older buildings that could likely increase their scores by two or three points with existing retrofit technologies, thus earning $800 to $1,200 additional revenue per year.” zz More information about the ACEEE study can be found at www.aceee.org/researchreport/b2204.

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Canadian Property Management | July 2022 31

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