by Brianna Crandall — March 12, 2012—U.S. Energy Secretary Steven Chu has announced the winners of a competition that challenges collegiate students to develop and present real-world solutions to boost the energy efficiency of buildings across the country. The Better Buildings Case Competition is designed to provide the next generation of engineers, entrepreneurs and policymakers with skills and experience to start careers in clean energy and generates creative solutions to real-world problems to be used as models for businesses and other organizations across the marketplace to identify cost-effective energy-saving improvements they can make in their own buildings.
A facet of President Obama’s all-of-the-above energy strategy, the competition is part of the U.S. Department of Energy’s (DOE) Better Buildings Challenge, which supports commercial and industrial building owners and managers by providing technical assistance and proven energy efficiency solutions.
Nineteen university teams—led by their respective energy clubs—analyzed case studies focusing on a range of challenges faced by private-sector organizations and state and local governments that are looking to improve the energy efficiency of their operations. The case studies consisted of real scenarios, background information, and data.
The student teams competed to find the best solutions to the energy efficiency challenges presented in real-world case studies for the City of Houston, the District of Columbia, HEI Hotels and Resorts, and Cassidy Turley, a major commercial real estate firm.
The following university teams won their respective competitions:
City of Houston Case Study
- Best Proposal—George Washington University: addressed the root causes of energy efficiency challenges by recommending a realistic package of policy, financing and stakeholder engagement and communication strategies.
- Most Innovative—University of California at Berkeley: presented an innovative idea to use Qualified Energy Conservation Bonds for private owners to bring affordable financing for energy efficiency upgrades to commercial buildings.
District of Columbia Case Study
- Best Proposal—Carnegie Mellon: recommended an outright sale or long-term lease of the Walter Reed Army Medical Center site to a master developer. The terms of the contract would require the master developer to meet water and energy sustainability milestones, while the District would award property tax refunds to the developer to meet these goals. All of the incentives would be revenue-neutral to the District and structured to reward achievement of the goals.
- Most Innovative—MIT: demonstrated a clear understanding of energy efficiency issues and proposed integrated approaches that would drive energy and water efficiency. They proposed a district energy system based on a build-own-operate service model to provide energy, manage the distribution system and interface with customers. The proposed financing for the system would come from the provider or through a lender, instead of by issuing revenue bonds.
HEI Hotels and Resorts Case Study
- Best Proposal—Columbia University: presented two options with the potential to help hotel property owners meet and exceed their performance improvement plans while saving energy and money. One option requires no investment from the franchisor by using a combination of loans, tax incentives, rebates, and participation in energy efficiency programs. The other option requires a loan from the franchisor, which the property owner proposes to pay back at a seven percent interest rate.
- Most Innovative—University of Colorado, Denver: presented three options to help hotel operators reduce their energy costs by adjusting their operations, which will save energy and allow the hotels to improve performance with no investment by the franchisor. To accomplish this, the franchisor would establish a revolving loan fund.
Cassidy Turley Case Study
- Best Proposal—MIT: proposed four steps to improve the energy efficiency of a multitenant office building, including engaging and negotiating with tenants in the realistic, multiphase project; implementing energy efficiency upgrades; aligning new tenants as leases turn over; and launching a “Go for Green” program. Their solution demonstrated understanding of commercial real estate realities and the motivations of an owner and tenants.
- Most Innovative—University of Southern California: This team ran a sophisticated energy model to make recommendations for energy efficiency upgrades of the multitenant office building, which would be implemented through a multiphase financing and lease renegotiation process.
