Retrotec USACE - Manual (Page 119)

Appendix A A5
place of “recapitalization.” Maintenance and repair should not be confused
with recapitalization.
A building undergoing recapitalization (or capital renewal) is a perfect op-
portunity for the application of ECMs since incremental costs are involved. In-
cremental costs are the additional costs associated with transforming a project
from “business as usual” subsystems into more energy-effi cient options. Exam-
ples are many including energy-effi cient windows instead of standard windows,
a cool roof instead of a standard built-up roof, a full-fl edged energy manage-
ment control system rather than a building automation system, and so on.
The recapitalization rate is the average annual percent fl oor space of the
portfolio that is renewed. This rate varies by the average age of the portfolio,
the building types, and other factors. This rate should be determined before
evaluating the portfolio for energy upgrades. As a rough guide, buildings are
renewed every 30 years. The rate at Public Works Canada is said to be 3% an-
nually. The rate is important because it determines the extent to which incre-
mental costs can be applied. Any energy-effi ciency upgrade plan for a building
portfolio should explicitly consider the effects of the recapitalization rate on
costs and scheduling of ECMs.
A.4 Incorporation into Standard Portfolio
Management Practices
Standard portfolio management practice often involves screening the build-
ings for requirements such as code compliance, seismic upgrade, and energy
effi ciency opportunities.
Screening is a continuous process based on archetype assignment and typi-
cal ECMs. Results from building condition reports (BCRs) would be included
as available (completed every fi ve years), as would asset management plans
(AMP). Screening would then be part of the BCR and AMP fi ve-year cycle
asset management. A more detailed energy performance evaluation would be
done for those with the best retrofi t potential and any scheduled recapitaliza-
tion projects. A retrofi t optimization would be done prior to the implementa-
tion. Figure A1 illustrates an example of effective management practice for
improving the energy effi ciency of the building portfolio. The energy retrofi t
could be done as a stand-alone project or at the time of capital renewal.