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Elara’s Matt Swanson Publishes Article: “Proactive Energy Cost Reduction on the Rise in Chicago High-Rise Buildings”

Elara Engineering Associate Principal Matt Swanson, LEED AP, CEM has had the above titled article placed as the cover story in the Autumn 2019 issue of Chicagoland Buildings & Environments.

The article presents the proactive approach taken to lower energy costs at the existing 474 North Lake Shore Drive high-rise condominium building located in the Streeterville neighborhood of Chicago.  Elara’s forward-looking approach implemented over several years by the 474 North Lake Shore Drive Condominium Association resulted in a 23% reduction in relative energy costs since 2007; a savings of $127,930 annually.

Beginning with Elara’s 2008 energy audit, the building’s Condominium Association maintained a constant focus on the energy performance of their building and continuously implemented energy conservation recommendations identified in the 2008 audit report, and subsequent reports in 2011 and 2015.

Consistent with Elara’s recommended strategy, projects that addressed “low hanging fruit” such as controls and VFDs that have a short-term payback and reduce the overall load of the building systems, were implemented first.  This strategy paid dividends during a 2016 chiller plant replacement.  Reduced demand of end-user systems (e.g., AHUs, exhaust fans, etc.) from previously recommended energy efficiency projects allowed for the installation of new chillers that were smaller in capacity; resulting in both lower initial and operating costs.  The associated savings allowed the Condominium Association to fund other energy efficiency upgrades.

In total, all of Elara’s recommendations that were implemented represented an incremental cost of $900,000 with a payback of less than 10 years.  Additionally, $58,275 was obtained through utility incentive programs to assist in funding the projects as a result of the energy efficiency improvements implemented.

A reprint of Mr. Swanson’s article can be found here and more detailed information about Elara’s 474 North Lake Shore Drive Project can be found here.

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Illinois’ New Retainage Law Now in Effect for Construction Contracts

Facility Managers, Building Owners and Contractors take note that on August 20, 2019, Illinois Governor Jay Pritzker signed into law SB 1636, the Contractor Prompt Payment Act.

The Act, which became effective the day it was signed has the following requirements:

  • A retainage of 10% of the payment may be withheld from a payment under a construction contract prior to the completion of 50% of the contract.
  • When a construction contract is 50% complete, retainage withheld must be reduced so that no more than 5% is held.
  • It further provides that after 50% of the construction contract is completed, the amount of retainage for any subsequent payments may not exceed 5%.

These differ from previous requirements and generally accepted contractual standards for construction projects in Illinois which upheld a retainage value of 10% throughout the project construction until substantial completion.

All future contracts and subsequent pay applications and approvals associated with construction projects within Illinois limits must ensure these provisions are upheld.

The full Act can be found here.

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Navigating Chicago’s New Construction Codes

Elara Engineering is pleased to initiate an ongoing series to inform building developers, owners and managers of the changes, deadlines, and potentially significant impacts from the City of Chicago’s new construction codes.  In this first installment, we provide background information on the new construction codes, identify important dates and highlight recent and upcoming code changes.

Background and Goals

According to a May 2019 presentation from the City of Chicago Department of Buildings, the goal of the new construction codes is “to better align the City of Chicago’s construction requirements with up-to-date model codes and standards used in other major US jurisdictions while maintaining longstanding local requirements that are adapted to unique conditions in Chicago.”

Chicago’s 2015-2021 Code Modernization Process – as the effort is called – has been broken down into three phases:

  • Phase I, which includes changes to the Conveyance Device Code and Electrical Code, has been completed.
  • Phase II, which includes changes to Administrative Provisions, Building Code, Energy Conservation Code, and Rehabilitation Code, is to be completed between 2017 and 2020.
  • Phase III, which includes changes to Fire Prevention Code, Fuel Gas Code, Mechanical Code, Plumbing Code, and (specific) Energy Conservation Code enhancements, is to completed between 2019 and 2021.

Electrical Code (Effective 3/1/2019)

Chicago’s new Electrical Code, which became effective on March 1st of this year, includes the following highlights:

  • 20 new code articles taken from the National Electric Code (NEC) including six that deal directly with renewable energy
  • Upgraded articles dealing with solar-photo voltaic construction to reflect the new technologies
  • Lighting load calculation and service disconnect location exceptions
  • New requirements for switched lighting

Energy Conservation Code (Effective 6/1/2019)

The revised Illinois Energy Conservation Code, which adopts the 2018 International Energy Conservation Code (IECC) with amendments, is effective on June 1, 2019. The law does not apply to buildings designated “historic” or having “landmark status” (interior and exterior separately), buildings exempt from a local building code, and buildings that do not use either electricity or fossil fuel for comfort conditioning. The new Illinois Energy Conservation Code includes the following highlights:

  • IECC now addresses both commercial and residential buildings
  • Additional compliance paths have been identified including ASHRAE and performance based
  • Code officials are required to approve energy compliance in lieu of testing requirements outlined in the previous IECC
  • Lighting and lighting control including daylighting requirements have been updated and clarified
  • Mechanical equipment efficiency ratings, minimum airflows and required controls have been updated and clarified

Building Code (Effective 8/1/2020)

A new Building Code will be issued by the International Code Council (ICC) in October of 2019 and will ultimately be adopted by the City of Chicago for mandatory use as of August 1, 2020. A transitional period for implementation of the new building code has been outlined by the City of Chicago as follows:

  • Test projects utilizing the new ICC Building Code will be accepted by invitation only for permit applications within the City of Chicago during the Fall of 2019.
  • Permit applications within the City of Chicago will have the option to submit according to the new ICC Building Code beginning December 1, 2019.
  • Minimum standards for compliance with the new ICC Building Codes will be enacted and enforced by the City of Chicago during the Spring of 2020.
  • The new ICC building Codes will be mandatory for all permit applications within the City of Chicago as of August 1, 2020.
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R-22 2020 Phase-Out Deadline Fast Approaching

Background
The Montreal Protocol is a global agreement with the goal of phasing out the use and production of Ozone Depleting Substances (ODS), which include hydrochlorofluorocarbons (HCFCs). To meet the goals established by the Montreal Protocol, HCFCs must be phased out by January 1, 2020; and will therefore, no longer be produced or imported into the U.S. after that date.

Although other HCFCs can be sometimes be found in currently used refrigeration equipment, the most common HCFC by far is HCFC-22 or R-22.  This refrigerant is used in existing air conditioners and refrigeration equipment including unitary air conditioners, cold storage, retail food refrigeration equipment, chillers, and industrial process refrigeration.

Many recall the first step of the HCFC phase out, which occurred on January 1, 2010 and resulted in the production of R-22 to be significantly reduced. Since the initial phase out, the cost of R-22, and therefore the cost of maintaining equipment using R-22, has become increasingly expensive. After the upcoming phase out, only reclaimed or stockpiled R-22 can be used for maintenance of R-22 refrigeration equipment. It is expected that the cost of R-22 will significantly increase with the latest phase due to limited and dwindling supplies.

Options for Building Owners and Managers
With potentially many pieces of air conditioning equipment under their care and responsibility, the upcoming R-22 phase-out deadline means that building owners and managers need to establish a viable, common-sense course of action to pursue.  Several options are available.

  • DO NOTHING NOW AND WAIT. If a unit breaks after January 2020, the repair may be cost prohibitive due to the cost of R-22. If it happens in 2019, a decision will have to be made to replace it or to invest in a repair.
  • RETROFIT OLDER SYSTEMS TO USE A NEW REFRIGERANT. In some cases, equipment owners can invest in a retrofit that allows existing equipment to use certain newer refrigerants. Because this option will not be possible for all systems, an analysis will be needed to determine its technical and financial viability.
  • REPLACE PROACTIVELY. Although the upfront cost/investment can be a hurdle, especially if multiple systems need to be replaced prior to the R-22 phase-out deadline; proactive replacement could be the most cost-effective alternative in the long run. Equipment owners can take advantage of current tax breaks and utility-sponsored incentive programs to potentially reduce HVAC equipment and installation costs.

Options Guidance and Cost Reduction Opportunities 

With expertise in energy audits and studies, master planning, engineering design, equipment identification and selection; Elara Engineering is well-positioned to identify, evaluate, and pursue a technically and financially sound R-22 phase-out option.  In addition, having procured a cumulative total of over $5MM in incentives from ComEd, Peoples Gas, and Nicor to help offset costs associated with the installation of energy efficient improvements, Elara can assist clients, when combined with applicable tax breaks, minimize R-22 phase-out costs as much as possible.