As the industry moves toward a sustainable future, Team Henderson headed to the big apple to learn more about how to reduce carbon emissions in existing buildings—especially large and tall structures that face unique decarbonization challenges during cold weather. Al Spinelli, senior mechanical engineer; Hannah Blake, mechanical engineer; and Matt Higgins, lead energy analyst, joined industry leaders at the 2024 ASHRAE Decarbonization Conference in New York City. The event featured technical sessions and panels where professionals, including engineers, property managers, portfolio managers, contractors, government employees, and manufacturers, gathered to learn about solutions for advancing sustainability goals. Here are some essential takeaways for decarbonizing complex building portfolios in an evolving regulatory landscape.

Demand for Efficiency and Innovation

With increasing requirements from Building Performance Standards (BPS), owner-driven goals, and corporate sustainability commitments, the demand for creative, effective solutions to improve energy efficiency and reduce carbon emissions is higher than ever. However, as discussed during the conference, decarbonizing existing buildings isn’t as simple as swapping out fossil-fuel systems for electric ones, especially in cold climates. Instead, the first step should be to optimize a building’s performance to enhance energy efficiency through better controls, operational adjustments, heat recovery, and occupancy-based setpoints. By taking these initial steps, building owners can enhance overall efficiency, making future electrification more achievable and cost-effective.

Compliance and Penalties for Building Owners

BPS legislation requires existing buildings to monitor their energy use and set reduction targets for energy consumption or carbon emissions, to move toward a net-zero target over the next 25 years. These policies serve as a compliance roadmap for building owners, helping them navigate rising penalties as targets become more stringent. With nine states and cities already enforcing BPS legislation and nearly 40 more committed, building owners face the threat of significant fines for non-compliance, which can include penalties ranging from thousands to millions of dollars, depending on a building’s size and energy performance. Substantial penalties encourage owners to consider proactive decarbonization measures rather than risk costly fines.

Heat Recovery and Energy Storage

Heat recovery and thermal energy storage emerged as a key topic at the conference, offering practical solutions to support electrification and carbon reduction efforts for buildings. Here are a few of the strategies discussed:

• Recycling Heat from Cooling Systems: Cooling systems can redirect rejected heat to improve domestic hot water or space heating efficiency.
• Energy Reclamation from Wastewater: Wastewater systems can serve as heat sources for heat pumps, reusing energy that would otherwise be wasted.
• Energy Storage Solutions: Ice tanks and battery storage provide options for peak demand management by storing energy for later use.

Integrating these strategies help buildings reclaim lost energy, lower costs, and reduce carbon emissions. In some cases, partial electrification of a building can be a cost-effective way to reduce emissions. For example, in colder climates, it may be financially feasible to electrify 90% of a building’s systems, while electrifying the final 10% can be prohibitively expensive. One case study shared during the conference demonstrated that a 100% electrification would double the number of heat pumps compared to a 90% electrification, and at the same time require extensive upgrades to the building’s electric systems and structure. This is because buildings are set up to handle the coldest hours of the year, setting peak heating capacity for rare worst-case scenarios. By performing partial electrification, buildings can make a big difference in reducing emissions without having to pay for major changes.

Further energy performance measures such as retro-commissioning, heat recovery, or envelope upgrades, can be phased in as budgets allow. Owners can also make use of local and federal incentives to help finance decarbonization projects, allowing them to offset upfront costs. Many jurisdictions implementing BPS legislation now offer online resource banks to help property owners navigate funding opportunities that support impactful solutions.

Henderson Knows Decarbonization

Each building holds the potential for significant energy savings through intentional choices and effective resource use. Decarbonizing these spaces means finding the right balance between energy efficiency, financial flexibility, and innovative technology. Our team, alongside sister company Henderson Engineers, is committed to providing clients with services such as energy audits, retro-commissioning, and advanced engineering design to deliver comprehensive solutions to achieve meaningful energy savings and carbon reductions. While there are still steps ahead on the path to a sustainable future, we’re committed to pursuing them alongside our clients. Together, we are ready to bring ambitious sustainability goals to life, offering the expertise and support to drive decarbonization forward.