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Unlocking Energy Savings: Your Guide to Commercial HVAC Energy Credits

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November 2024

by Levi Lawson

In today’s energy-conscious landscape, utility companies across the country offer energy credits and incentives to encourage replacing outdated HVAC systems with high-efficiency models. For building owners, these credits can offset the costs of upgrades, improve operational efficiency, and enhance environmental sustainability. Navigating commercial HVAC energy credits can be complex, but the financial and environmental benefits make it worthwhile. At TK Architects, our engineers have helped our clients maximize their energy credit potential in all five regions of the United States.

Understanding Energy Credit Programs

Utility companies, often regulated by state and federal energy efficiency mandates, design energy credit programs to encourage adoption of high-efficiency HVAC systems. These programs vary widely in scope, eligibility requirements, and payout structures. Generally, energy credits are offered in the form of:

• Utility Rebates: Require submission of an application post-purchase.

• Federal Tax Credits: Offered by the federal government for specific energy-efficient upgrades.

In addition to efficiency mandates, utility companies are motivated to reduce overall energy demand, particularly during peak usage times. When their customers install energy-efficient equipment, utilities can defer the need for new power plants and infrastructure investments. Energy credits are a win-win, promoting sustainability while helping utilities manage demand.

Financial Benefits

Upgrading to energy-efficient HVAC equipment provides financial benefits beyond energy credits. Key benefits to consider: 

•  Upfront cost savings: Energy credits can cover a portion of equipment costs, reducing initial capital outlay. Timing the upgrade properly helps to align with program cycles and funding availability, while still considering seasonal demand and potential downtime. Additionally, grants or special financing programs can be a good fit in certain cases. 

• Long-term energy savings: High-efficiency systems lower energy consumption and reduce utility bills, depending on the building size and usage patterns. Energy-efficient equipment typically has a higher upfront cost, so the credit can offset that as the payback period and ROI are being calculated.

• Tax advantages: In addition to utility credits, federal incentives like the 179D deduction can apply to commercial buildings meeting energy efficiency thresholds. Combine multiple incentives to stack them where permissible.

• Improved asset value and building comfort: Buildings with higher-efficiency equipment typically appraise higher than their standard counterparts. Additionally, an often overlooked benefit is enhanced comfort that comes along with improved climate control and air quality.

Identifying Available Energy Credits 

Local utility companies often have information on applicable rebates and incentives for their products available online:

• Visiting your local utility company’s website to explore available programs may help avoid common pitfalls. Some examples TK Architects commonly sees are not obtaining pre-approval, incomplete Construction Documentation, selecting standard equipment, and not being aware of completion or application deadlines.

• We advise at this time contacting utility representatives for detailed information. It is usually a free service offered where a utility agent or specialist can provide real dollar amounts for each piece of equipment. A recent project in Florida was offering $600-800 per rooftop unit depending on tonnage, plus an additional $500 each for providing a CO2 sensor for demand control ventilation. You will generally be asked to provide a Tax ID number for rebate payment quickly after installation.

• Federal tax rebates allow building owners to have deductions or credits applied to their tax liabilities. 

Identifying Eligible HVAC Equipment

To qualify for energy credits, HVAC equipment must meet specific energy efficiency standards. TK Architects has experience specifying equipment that complies with ASHRAE 90.1 Standards, SEER, EER, and HSPF, among others.

Examples of HVAC equipment types eligible for energy credits include:

• High-efficiency chillers and boilers

• Variable refrigerant flow (VRF) systems

• High efficiency rooftop units (RTUs)

• Heat pumps (air source, water source, and geothermal)

Learning about eligible HVAC equipment can also point to future trends in energy credit programs. TK Architects is anticipating more aggressive credit programs targeting net-zero emissions as decarbonization efforts intensify. There might also be expanded eligibility for innovative technologies, such as more advanced heat pumps and energy storage options. And finally, there is also a very high likelihood that smart grid systems will enhance their integration to optimize energy use in commercial applications.  

Steps to Navigate the Process 

To explore energy credit opportunities, here are recommended steps:

1. Consult with an Engineering Professional at TK Architects to identify opportunities for improvement

Assessing current energy usage identifies inefficiencies in your existing HVAC systems and determines the potential benefits of upgrading. Existing buildings that have undergone remodels or have reduced occupancy (such as a theater recliner conversion) are great candidates for equipment replacement. We will also engage with manufacturers for equipment selection.

2. Research local utility programs

Utility companies typically publish details of energy credit programs on their websites. Often there are agents available to guide pre-approval. Many programs require pre-approval before purchasing or installing equipment. This ensures compliance and reserves funds for the project.

3. Obtain necessary Construction Documents

Engineers at TK Architects will create permit documentation outlining all equipment specifications and calculations. We will also assist with the application process and ensure compliance.

4. Submit applications

Ensure the selected equipment meets or exceeds the efficiency standards required by the utility program, complete all forms, include supporting Construction Documents, and follow submission guidelines. Keep a record of submission confirmations.

5. Installation and verification

Proceed with equipment installation. The energy credit programs will require post-installation verification and/or inspections for proof of purchase and installation. The installation contractor may also need to submit certification documents.

6. Receive Credits

Energy credits may come as a check, bill credit, or tax deduction. It is also advised to keep record for future reference or audits. 

Conclusion 

Navigating energy credits for replacement HVAC equipment in commercial buildings can be complex, and understanding the available incentives and the process is crucial. By conducting due diligence, engaging our professionals, and staying informed on program requirements, businesses can successfully leverage energy credits to make energy-efficient upgrades more affordable. As energy efficiency programs evolve, we at TK Architects are dedicated to staying informed and proactive, ensuring your business remains at the forefront of smart energy management.

Ready to explore how energy credits can support your next upgrade? Let’s talk!

Principal, Levi Lawson

How to Build Successful Prototype Designs – Key Codes, Challenges, and Finishes

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October 2024

by Melissa Miller

Building prototype designs can offer numerous advantages for new building programs and franchise opportunities. A well-developed prototype speeds up permitting and construction timelines, reduces professional fees, and streamlines overall project delivery. However, as with all construction projects, challenges still arise from location to location. While we all appreciate the term “prototype,” each site presents unique variables that can impact the architectural design of a building. These differences include city requirements and local codes, site-specific conditions and spacing, availability of interior finishes, and client modifications.

First, let’s explore city requirements and local codes. Part of our initial research for any new project involves identifying the applicable code years. Codes differ by location, and each version can significantly impact a prototype building. For example, allowable building areas can differ. Larger buildings are often subject, to stricter regulations depending on the code year and building type. Altering a building’s construction type can impact numerous factors, including sprinkler system requirements and fire ratings.

Second, the characteristics of a building site can influence what can be constructed. Codes often dictate minimum distances between buildings to maintain fire safety. Ideally, we aim for at least 60 feet between structures. However, in developed areas, we understand that achieving this distance may not always be possible. When this happens, a deeper review of allowable areas and fire ratings is required. This could lead to adjustments in the exterior materials or fireproofing methods to ensure a safe structure. As Trevor mentioned in his last blog, the location of site utilities can impact the building’s plumbing and riser room placement, ultimately affecting the overall floor plan.

Another consideration is city-specific requirements for building appearance. These requirements typically come from planning and zoning departments. Some cities mandate more detailed façades to help new buildings blend with existing surroundings. Additionally, signage regulations—such as limitations on square footage, colors, and lighting—often vary by location and must be considered.

Lastly, interior finishes are another factor to keep in mind. While a consistent selection of finishes across all locations may be preferred (such as a particular tile for restrooms or carpet for lobbies), the availability of these materials can change over time. If a project has an extended design or construction timeline, certain finishes might be discontinued. Although this is less critical than fire ratings, it still requires attention and flexibility during the prototype process.

While the word ‘prototype’ is widely used in the architectural industry, achieving a truly prototypical building involves considering a variety of factors. At TK, we’re here to guide you through the process and help you create the building that fits your vision and site-specific needs.

If you haven’t already, we invite you to explore our previous blogs on prototype design, where we dive deeper into the intricacies of creating efficient and scalable buildings. If you have questions or would like to discuss your upcoming project, please reach out! We’d love to talk to you.

Principal, Melissa Miller

Streamlining Prototype Design for New Construction Projects

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September 2024

by Trevor Ruhnke

Building prototype designs can offer numerous advantages for new building programs and franchise opportunities. A well-developed prototype accelerates permitting and construction timelines, streamlining the overall project delivery. However, like all new construction projects, challenges still arise, particularly in the realm of Mechanical, Electrical, and Plumbing (MEP) engineering. This blog explores the key considerations and solutions for optimizing prototype designs in the face of site-specific challenges.

MEP Engineering and Site Utilities

One of the first steps in MEP engineering is identifying the available utilities at potential sites, these findings would be coordinated with a civil engineer. The availability of natural gas is often the most significant factor influencing the design. Natural gas is typically utilized for heating in HVAC systems, domestic water heating, and commercial cooking equipment. However, if a prototype is designed to utilize natural gas, and the project site lacks this resource, two viable alternatives are commonly considered: propane and all-electric systems.

Option 1: Utilizing Propane

When natural gas is unavailable, propane can be an effective alternative. This option is less impactful on building systems and equipment design but requires significant consideration of site layout. Most HVAC and cooking equipment can be modified to use propane with simple adapters, and the gas piping will usually be similar in size, with slight variations based on the total fuel load.

However, propane storage poses a site challenge. Propane is stored in tanks, either above or below ground. The size of the tank is determined by the building’s load and the frequency of tank refills. Therefore, establishing a base tank size for each prototype is crucial when propane is the preferred option.

Option 2: All-Electric Building

The second alternative is to design an all-electric building. Equipment that typically relies on gas for heating can be equipped with electric elements. However, electric heating can substantially increase the load on the building’s electrical system, potentially requiring an upgrade to the building’s electrical service. This can lead to significant cost increases.

If an all-electric solution is preferred where gas is not available, this often results in the development of two separate prototypes to accommodate different energy sources.

Site Challenges: Water and Sewer Availability

Another potential challenge in new construction projects is the availability of domestic water. If a site is located far from municipal infrastructure, a water connection may not be available, necessitating the drilling of an on-site well. This process involves working with a well designer/vendor to test groundwater availability and design a system that meets the building’s pressure and flow requirements. Space must be allocated on the site for the well house, which typically includes the wellhead, pressure pumps, storage tanks, and a chlorinator system.

Similarly, if a site lacks access to a municipal sewer system, a septic system must be installed. While the interior building systems generally remain unchanged, the site must accommodate a septic drain field, as well as pumps and aerators, depending on the design. The size of the field will be determined by site characteristics and the percolation rate of the local soils.

In addition to water and sewer considerations, managing stormwater is crucial for any new construction site. Proper stormwater management ensures compliance with local regulations and prevents potential flooding or erosion issues. This requires collaboration with a civil engineer who can design an effective stormwater system tailored to the site’s specific conditions. The civil engineer will assess factors such as rainfall patterns, soil permeability, and topography to develop a system that efficiently handles runoff, incorporates retention or detention basins if necessary, and integrates seamlessly with existing infrastructure.

HVAC System Sizing and Geographical Considerations

The HVAC system is another critical component that may be impacted by site-specific factors. To function properly and efficiently, the HVAC system must be matched to the load of the space. Each prototype location may have different peak heating and cooling loads, particularly if there is significant geographical climate variation between sites. In such cases, the HVAC system may need to be resized, either through site-specific changes or by developing separate prototypes for similar climate zones.

Conclusion

Prototype project designs are an efficient way to accelerate building completion, but they require careful consideration of site-specific challenges. Evaluating potential sites for utility availability before lease or purchase negotiations can help select the best fit within a given area. While no two projects are exactly alike, MEP systems can be developed with flexibility in mind, minimizing the need for significant changes in response to specific site conditions.

If you’re considering developing a prototype design for your next building program or franchise opportunity, it’s essential to work with experienced professionals who understand the complexities of MEP engineering and site-specific challenges. Our team is ready to help you navigate these hurdles and ensure your project is optimized for efficiency and success. Contact us today to discuss how we can support your next project successful from start to finish.

Steve Petracek, Principal

Optimize Site Adapted Prototypes for Efficient and Compliant Design

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July 2024

by Steve Petracek

Site Adapted Prototypes

On the design side of a project, everyone loves a prototype. Okay, maybe not everyone, but making a project or its details can be prototypical, the more efficiently a project can be designed. However, adapting a prototype to a specific site requires careful consideration. Questions may include: How does the building integrate with the site’s layout? How do planning, zoning, and energy codes influence both aesthetics and functionality? And where are the utilities situated, considering they often don’t align with the optimal building corners?

On the structural side of the project, The main elements affecting structural design at any site are variable loadings: snow, wind, and seismic forces. Foundations can vary as much as the loading types, each presenting unique challenges. The complexity of foundation design increases with soil types like clay, silt, sand, or any combination thereof, not to mention site leveling and frost depth. In conclusion, addressing these variables with a well-adapted prototype ensures structural integrity and cost-efficiency.

Snow

Snow is effectively a variable live load, and while many of us enjoy it, it can significantly impact a structure’s design. For reference, a standard roof live load is 20 pounds per square foot (PSF) across the country. In regions like Florida, southern Texas, and southern California, there is no snow loading. However, places like Maine and Alaska can experience ground snow loads of up to 100 PSF. Site-specific locations in mountainous regions, such as Colorado and Idaho, can have localized loads well over 100 PSF. Consulting the building official in these areas is highly recommended but not always sufficient. Building officials often suggest contacting local fabricators to determine the typical design load used in the region.

Wind

Wind pressure can be applied as a broad loading, or in other words, one design covers a significant area of the country. Almost everywhere in the country, anytime you step outside, you can feel a breeze. For wind to be considered severe in the US, it must reach a speed of 58 mph with most storms only reaching 39 to 46 mph per the National Oceanographic and Atmospheric Administration (NOAA). Therefore, one design may be able to cover 90% of the prototype locations. Unless the project is in a hurricane zone, the code wind speed in the US is predominately 115 mph or less for a Risk Category II structure. For a Risk Category III, the wind speed jumps to 122 mph, well above all but the most severe cases.

Seismic

Location is significant in seismic design, with forces determined by the structure’s weight. Plate tectonics and the Ring of Fire in the Pacific significantly affect the west coast and Alaska. But one can’t forget the Madrid fault in southeast Missouri that in 1811 it shook and was felt in Hartford, CT and Charleston, SC.  The lighter the structure, the smaller the seismic force. For most lightweight structures built with wood or cold-formed steel framing, 90% of the designs are completed with a single approach since the structure is relatively light. However, some variations make seismic design unique at each site compared to wind. Beyond the previously mentioned weight concern and building height, framing type plays a significant role in the design effort. Concrete shear walls, moment frames, and braced frames are in a long list of framing options that require different levels of detail, depending on the maximum considered earthquake. And then there is the soil type unique to each site that plays a significant role. Solid or soft, each one resists the load in a different way.

Geotechnical

Geotechnical information varies significantly across the United States, impacting building costs. To break this variation down, I will address them as two foundation types: shallow and deep. Shallow foundations are the typical spread footings located approximately in the upper 10′ of the soil. Deep foundations are some version of piers or piles and extend deeper than 10′. Depending on the structure’s mass, a conservative value for spread footings that work in most places may add avoidable additional costs.

An assumed bearing pressure of 1,500 psf compared to an actual bearing pressure of 2,000 psf could reduce the footing size and material costs by 25%. The nice thing about spread footings is that an adjustment to them can be made easily and quickly, depending on the complexity of the foundation system. 

There is no point in making the effort for deep foundations to create a prototype design. There are too many variables. Better results will be achieved by designing deep foundations on individual projects.

Grouping

For a prototype design, the larger the grouping, the quicker the updates or design adjustments can be made. Of course, the design envelope size will vary, depending on the framing material and type. Structural steel and concrete typically have extra capacities based on code minimum or functional requirements. For example, an HSS2x2 post may work, but an HSS4x4 is used because of the connection preferences. Cold-formed steel and wood are typically not loaded to their maximum capacities, and higher loads can be applied to allow for a larger design window. 

With all this said, prototype design can be very efficient for a client and a time saver for the designer. There will always be a design element in every project, but if the layout and framing of a structure don’t change, design effort is reduced, saving time and money.

The body having jurisdiction has the final say. Each municipality is different, and many have unique requirements, so even with the best planning, changes could still be possible.

Conclusion

Adapting prototypes to specific sites involves a careful balance of design efficiency and compliance with local codes and environmental conditions. By understanding the impact of site layout, planning, zoning, and structural variables such as snow, wind, and seismic loadings, architects and engineers can create designs that are both functional and cost-effective. Effective communication with local building officials and fabricators is crucial to ensure that the design loads and foundation requirements are accurately addressed.

Ready to optimize your next project with site-adapted prototypes? Contact our team of experts today to ensure your design meets all site-specific requirements efficiently and effectively. Let’s bring your vision to life!

Steve Petracek, Principal

Tales from 907 at Bowl Expo 2024

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July 2024

by Theresa English

Flying out under a rainbow is a promising start to any journey, and that’s exactly how my trip to Bowl Expo began. This year’s event was held at the Gaylord in Denver, offering breathtaking views of the mountains. The show took place on Monday and Tuesday before the 4th of July, providing a family-friendly environment with arcade and game vendors generously offering free play on all machines. Operators brought their best testers—their kids! Before the trade show opened, there was a decent line at registration, with a sense of anticipation bubbling among the attendees.

TK Architects shared a booth with our long-time partners at Proctor Companies a relationship that spans over 40 years.  Our booth, 907, was located across from the new product showcase and near the food vendors, with the concession area offering lunch and snacks right behind us.  The camaraderie among the vendors was felt, making the show a truly enjoyable experience.

MONDAY

Monday was pretty busy at the booth with many productive conversations with Bowling and Entertainment Operators.  Some were looking to renovate, a few looking to build new, and a sprinkling who had just completed their renovations.    The energy was exciting and positive, making it refreshing to discuss how people are moving forward and how well their facilities are doing.  

We even had a visit from Ricky Bourgeois and the team at Premier Lanes in Gonzales. They stopped by to say hi and discuss with Proctor about replacing their dishwasher, which has been in use since the original build 13 years ago. (It’s hard to believe that project was so long ago.) Ricky shared a memory about collaborating closely with our design team and engineers to develop their signature “Ball Wall.” He tracked down bowling balls in different colors and weights and helped get them drilled so they would sit perfectly over the structural supports. He still loves that element!

Being right across from the New Product Showcase, I had the opportunity to check out some of the new items. This included innovative technology for bowling center operations staff, scoring, and marketing.  There were also new robots that can make crazy cotton candy, balloon animals, specialty marshmallows, and more!  A fun new Ultimate Disk game from Shaffer and the Pixel Games new floor game with a roll up LED that can allows it to be used on the floor. 

TUESDAY

Attendance Tuesday was a little lighter down at our end of the hall but we were still able to have productive conversations with new potential customers and vendors to discuss their needs and opportunities.  The overall show was smaller than last year (no full-size bowling lanes this time) but the optimism of the attendees was invigorating and we are excited to continue those conversations!!

WHERE TO FIND ME NEXT

If you missed the show and would like to discuss your project, please reach out, we’d love to have an in-depth conversation with you.  As always, I can be reached at 816-842-7552 or send me an email at tenglish@tkarch.com   You can find me next at the International Cinema Technology Association Summer Conference in Laguna Beach, July 21st -July 25th

Hope to see you there!

Theresa English, Principal