You can employ men and hire hands to work for you, but you will have to win their hearts to have them work with you. William J.H. Boetcker

Monday, April 30, 2012

Something to Think About

“Is that the best you can do?” - Whether you are a buyer or seller, you always want the “best” price, right?  But who defines “best?” Which side of the table gets “best?" What are the rules for doing that when conflict is certainly at play?  

It’s a competition, and the name of this game is negotiations.  Winners and losers could happen in this game too as both sides compete to define “best” to their satisfaction.  It doesn’t matter which side you are on, your responsibility is to be a good negotiator. And in this game of sport, if you are really, really good, everybody wins.  Never anticipate what the other side is thinking. Go into every negotiating situation with an open mind and listen to what the other party is saying. "Why don't you throw out a number?"  

There are differing schools of thought on this, and many people believe you should never be the first person in a negotiation to quote a price. Let the other side start the bidding, the thinking goes, and they will be forced to show their hands, which will provide you with an advantage. But some research has indicated that the result of a negotiation is often closer to what the first mover proposed than to the number the other party had in mind; the first number uttered in a negotiation (so long as it is not ridiculous) has the effect of "anchoring the conversation." 

And one's role in the negotiation can matter, too. In the book Negotiation, Adam D. Galinsky of Northwestern's Kellogg School of Management and Roderick I. Swaab of INSEAD in France write: "In our studies, we found that the final outcome of a negotiation is affected by whether the buyer or the seller makes the first offer. Specifically, when a seller makes the first offer, the final settlement price tends to be higher than when the buyer makes the first offer." When constructing an aggressive (but not absurdly aggressive) first offer, there are generally two values on which you should focus. 

First, consider your alternatives to agreement and create a reservation price—a specific value at which you'd prefer to walk away rather than reach a deal. Now you'll be prepared to accept any agreement that exceeds your reservation price and reject any value that falls below it. Second, determine your ideal outcome, or target price—the agreements or values that would fulfill all of your negotiation hopes and desires. Knowledge of your reservation price is crucial, but it's your target price that you should pay attention to when constructing a first offer. Mussweiler, my colleague Victoria Husted Medvec, and I have found that negotiators who focus on their target prices make more aggressive first offers and ultimately reach more profitable agreements than those who do not.  http://hbswk.hbs.edu/archive/4302.html

News Updates for the Week of April 30


1.     States Push Efficiency - States like Pennsylvania are looking to lead by example on energy efficiency through proposed legislative measures. The legislation calls for the state Department of General Services to establish an energy efficiency savings target for all state buildings. The target is to attain a 20 percent reduction in energy use in all state buildings by the end of 2013, and 30 percent by 2017, when compared with energy use and energy purchases for the fiscal year ending June 30, 2008. Maryland’s House Bill 1088 establishes an energy efficiency on-bill financing program for residential and commercial customers in the state to encourage utility customers to make energy efficiency improvements to residential and commercial properties through low- or no-interest loans repaid directly to a utility on a utility bill. New York became the first state to pass a statewide on-bill financing program in 2011, and others, including Colorado and Hawaii, have shown interest. Another state looking into energy efficiency is New Jersey. 4/25 Energy Biz

2.     Demand Expectations for the Lighting and Furnishing Products Sectors in 2012 - A new report by World Market Intelligence that analyzes the global interior design industry's view point on changing product demand patterns. The report features the opinions of interior design industry respondents related to the following:
R Change in demand for lighting and furnishing products
R Demand for new products in lighting, furnishing and office furniture
http://www.researchandmarkets.com/product/4e5f44/demand_expectations_for_the_lighting_and_furn

3.     Lighting Products Demand Expectations in 2012 - A new report by World Market Intelligence that analyzes the global interior design industry's view point on changing product demand patterns. This report forecasts the change in demand for lighting products. The report features the opinions of interior design industry respondents related to the change in demand for lighting products. http://www.researchandmarkets.com/product/4a8ac5/lighting_products_demand_expectations_in_2012

4.     DOE Releases CALiPER Application Summary Report 14 - The U.S. DOE has completed Series 14 of testing through the DOE Solid-State Lighting (SSL) CALiPER program. Report 14 of testing focused on LED downlight retrofit units. The report provides an overview of photometric performance results and compares the results to similar products that use conventional light sources, results from earlier CALiPER testing, and manufacturer ratings. A summary of the results is now available for download on the DOE SSL website at www.ssl.energy.gov/reports.html

5.     Commercialization of LED Fixtures to be Significant - Demand for lighting fixtures in the US is projected to increase 7.4 percent annually to $25.1 billion in 2016. This represents a recovery from the declines posted between 2006 and 2011, as both motor vehicle production and construction activity recover from low 2011 levels.  LED-based lighting fixtures are expected to provide especially strong growth through 2016 due to the rapid pace of technological advances in the LED light sources which will make them more energy-efficient, brighter and more affordable. In addition, while some LEDs can be used in place of traditional incandescent bulbs, lighting fixture manufacturers are also developing fixtures which are specifically designed for LEDs and help to optimize their performance. 4/27 SBWIRE

6.     New OCEAN URL www.energycodesocean.org - At this time, all links and resources using the previous URL www.bcap-ocean.org  will remain active and direct users to the same pages as before. 

7.     BCAP 2010+2011 Annual Report - The 2010-2011 Annual Report for the Building Codes Assistance Project.  Includes the status of BCAP and codes today, major projects in 2010 and 2011, new projects for 2012, BCAP's services offered, financial information, and more. http://energycodesocean.org/resource/bcap-20102011-annual-report

8.     GE LED City: A Brief Introduction to LEDs - The future of lighting is spelled LED.  GE Lighting Solutions recently produced an animated video short that does a nice job of presenting some powerful facts that help promote the benefits of LED lighting. See a brief video and LED 101 to learn more about the many benefits of GE LED technology including energy-cost savings of up to 90%, long-lasting performance, and design and construction that is free from mercury, lead and glass. http://www.gelightingsolutions.com/education--resources/led-education/led-city-video http://www.gelightingsolutions.com/education--resources/led-education/led-101

9.     Cuomo to Invest $800 Million for New York Energy Efficiency N YGovernor Andrew Cuomo is investing $800 million to enhance the energy efficiency of state and local government buildings, with a goal of reducing consumption by 20 percent over the next four years. About $450 million will be spent on updating state buildings, and $350 million on projects for local government, school district and public hospital facilities, he said. The power authority will issue as much as $800 million in debt to finance the projects, and repay the bonds from the resulting electric-bill savings. The upgrades include automated energy-management systems, electric motors and new lighting fixtures. Chicago Mayor Rahm Emanuel announced a similar plan last month for the Windy City to fund as much as $225 million in energy-efficiency upgrades using a mix of public and private investment.  4/26 Bloomberg

10.  HIA Pushes Energy Efficiency Measures in Local Businesses - In the first known initiative of its kind, the Hauppauge Industrial Association of Long Island is encouraging local businesses to become more energy efficient to save money for both their companies and Long Island residents. HIA business owners will be offered the opportunity to have a trained professional conduct a free energy audit of their company, to provide a benchmark of their energy usage.The Hauppauge Industrial Park, home to more than 1,300 companies within its 1,400 acres, is estimated to have paid more than $30 million to LIPA for electricity in 2009.  4/26 Commack Patch

11.  Atlanta Aims for Energy Efficiency in Buildings - Economic development officials in Atlanta are hoping a new project can lure new businesses downtown by making the area's buildings more energy efficient.  The plan calls for using up to $8 million in funding from the Westside tax allocation district to help building owners conduct energy audits or retrofit structures, especially offices that struggle with vacancies. Invest Atlanta would pay as much as 40 percent of the cost of the work, with the landlord footing the rest of the bill. 4/20 AP

12.  Georgia Power Recognized as The National Leader in EPA's ENERGY STAR Campaign - The U.S. Environmental Protection Agency (EPA) has named Georgia Power the 2011-2012 National Pledge Leader for its "Change the World, Start with ENERGY STAR" campaign. An ENERGY STAR partner since 2004, Georgia Power has exchanged more than 680,000 compact fluorescent light bulbs (CFLs) with customers for pledges since participating in its first EPA annual pledge campaign in 2006. 4/26 PRNewswire

13.  FPL to Reopen Application Period for Solar Photovoltaic Rebate Program on May 3 - Florida Power & Light Company announced today that beginning on May 3, customers interested in installing a solar-powered photovoltaic (PV) system can apply for 2012 incentive funding on a first-come, first-served basis for residential and business customers.  The PSC has authorized $15.5 million for FPL's 2012 solar rebate program, which opened in October 2011 and will continue through September 2012. Program details at: www.FPL.com/solarrebates  4/ 24 PRNewswire

14.  Carnegie Mellon Reports that DC Power is Cheaper for LED Lighting - Researchers at Carnegie Mellon University have published a paper evaluating the cost of energy for lighting systems and concluded that a DC grid is far less expensive powering LED lighting. In reality, the report is hardly a surprise. Fluorescent lighting was designed for AC-powered applications. LEDs require an AC-DC conversion, and generally a second, constant-current DC conversion to operate from the AC line. Every conversion wastes energy and a DC grid eliminates a conversion stage. And in the case of the additional savings in a solar installation, those DC solar cells also minimize conversions. http://www.ledsmagazine.com/news/9/4/28

15.  U.S. Economic Growth Slows to a Rate of 2.2 Percent in First Quarter - The Commerce Department says the economy expanded at an annual rate of 2.2 percent in the January-March quarter, compared with a 3 percent gain in the final quarter of 2011. Without autos, growth would have been about 1.5 percent. With 12.7 million people unemployed, today’s economy needs much faster growth to boost hiring. Growth would have to be roughly 4 percent for a full year to lower the unemployment rate, now 8.2 percent, by 1 percentage point. 4/26 Washington Post

16.  DOE Publishes Updated SSL R&D Plan - The U.S. Department of Energy has published the April 2012 edition of the Solid-State Lighting R&D Multi-Year Program Plan (MYPP). The MYPP reviews SSL technology status and trends for both LEDs and organic LEDs (OLEDs) and offers an overview of the current DOE SSL R&D project portfolio. DOE will continue to update the MYPP on an annual basis, with input from industry partners and workshop attendees, to incorporate new analysis, progress, and new research priorities as science evolves. To download a PDF of the 2012 MYPP, go to www.ssl.energy.gov/techroadmaps.html

17.  Pike Research Expects LED Lighting to Take Off in Asia Pacific - A recently published report, "Energy Efficient Lighting in Asia Pacific," from market research company Pike Research based in Boulder, CO states that in most Asia Pacific markets, governments are committing large amounts of funding to basic LED lighting infrastructure, creating an abundance of business opportunities. The firm expects sales of LED lighting systems to increase rapidly over the next ten years and to accelerate sharply after 2015. Unit shipments, including lamps and luminaires, will rise from 66 million in 2011 to 542 million in 2021 -- an increase of more than 700%. http://www.pikeresearch.com/research/energy-efficient-lighting-in-asia-pacific

18.  2012 DOE Solid-State Lighting Manufacturing R&D Workshop June 13–14, 2012 • San Jose, CA
The DOE Solid-State Lighting (SSL) Manufacturing R&D Initiative was created in 2009 to forge government-industry partnerships focused on a common goal: to reduce the cost and improve the quality of SSL products.  http://www1.eere.energy.gov/buildings/ssl/sanjose2012.html

19.  EPA Releases List of Top 50 Green-Powered Organization - See the Top 50 Green Power Partnership organizations voluntarily using clean, renewable electricity from resources such as solar, wind and low-impact hydropower.  http://www.epa.gov/greenpower/toplists/
  



Monthly Special Feature



The International Energy Conservation Code (IECC) is a model residential and commercial building energy code produced by the International Code Council. First published in 1998, the IECC was updated in 2000, 2003, 2006, 2009 and, earlier this year, 2012.
The IECC is actually not a code, but instead a template for legal jurisdictions to use to implement an energy code. These jurisdictions may adopt the IECC in whole, in part or modify it based on local needs. 

Today, most states have energy codes based on IECC and the ASHRAE/IES 90.1 energy standard. IECC references ASHRAE/IES 90.1, Energy Standard for Buildings Except Low-Rise Residential Buildings, currently the national energy standard, as an alternative standard. 

The IECC lists requirements and minimum standards for the design of lighting and other energy-using systems and features of energy-efficient buildings. This article by the Lighting Controls Association describes the basic requirements of the IECC, highlighting major lighting-related changes in the new 2012 version. Note that for each feature described, exceptions may apply; consult IECC 2012 for specific details.

Residential and commercial requirements in the 2012 IECC are more strongly differentiated in two separate sections. 

Residential
The residential lighting provisions in the 2012 IECC are relatively simple. Mainly, at least 75% of the lamps in permanent light fixtures must be high-efficacy, defined as T8 or smaller-diameter linear fluorescent lamps, or lamps with a minimum efficacy of 40 lumens/W for <15W, 50 lumens/W for 16-40W, and 60 lumens/W for >40W lamps. In the 2009 IECC, 50% of the lamps were required to be high efficacy.


Commercial
The commercial section of the code contains both mandatory and prescriptive lighting provisions. The mandatory provisions require:

* tandem wiring in certain fluorescent applications;
* maximum wattage for exit signs;
* circuiting for daylight harvesting control; and automatic shutoff, light level reduction and other controls.

The prescriptive provisions establish limits on lighting power by building and space type, with the designer and owner ultimately deciding how best to accomplish the lighting goals within the power constraint.

Occupancy sensors. Occupancy sensors are now specifically required in a series of spaces, including classrooms, conference/meeting rooms, employee lunch and break rooms, private offices, restrooms, storage rooms, custodial closets, and other enclosed spaces 300 sq.ft. or smaller. The sensor must turn the lights OFF within 30 minutes of vacancy and provide manual-ON or auto-ON-to-<50% operation.

Daylight harvesting. The 2012 IECC follows the 2009 IECC in requiring general lighting in defined daylight zones (areas expected to receive high, consistent daylight levels) to be separately controlled from other general lighting in the space.

While daylight zones define an area of daylight availability and separate control, the system designer then determines on their own how best to zone the lighting for manual or automatic control. IECC 2012 limits the maximum size of these control zones to 2,500 sq.ft. Options for automatic daylight harvesting control include continuous dimming with a 100% to <35% light output range or multilevel controls offering 100%, a step between 50% and 70%, and another step between OFF and 35%.

Additional controls. The 2012 IECC further requires separate control of display and accent lighting from general lighting, supplemental task lighting and others, bringing it more in line with ASHRAE/IES 90.1.

Interior lighting power allowances. The interior lighting power allowances, expressed as W/sq.ft., or lighting power density (LPD), are largely unchanged from the 2009 IECC, with these exceptions:
* 1.0 to 0.9W/sq.ft. for office;
* 1.5 to 1.4W/sq.ft. for retail;
* 0.8 to 0.6W/sq.ft. for warehouse buildings;
* 0.8W/sq.ft. for fire stations, new to the list; and
* reduction from a base of 1000W to 500W for the additional retail lighting power allowance.

With the 2012 version, for the first time, the IECC recognizes the Space by Space Method in addition to the Building Area Method (and Total Building Performance Method, requiring building modeling) as a compliance path, providing greater design flexibility. The IECC Space by Space Method is based on ASHRAE/IES 90.1, but with slight differences in the space types, and with different lighting power allowances for many spaces.

(The Building Area Method specifically requires adding up the installed interior lighting power in an entire building (or major section) and ensuring it is not greater than the single interior lighting power allowance for that building type. The Space by Space Method also compares the total installed lighting wattage in the building, but allows the user to develop the lighting power allowance based on the space type, with each type having its own LPD, and with tradeoffs permitted between spaces.)
Additional energy efficiency measures. 

Another major change in the IECC is Section C406, Additional Efficiency Package Options, which requires the building to either:
1) optimize HVAC efficiency beyond code;
2) optimize lighting efficiency beyond code; or
3) produce renewable energy onsite.

In this case of lighting, this entails achieving a lower LPD value using the Building Area Method—e.g., 0.99 instead of 1.2W/sq.ft. for school/university buildings, for example.

Readers may obtain a copy of the new 2012 IECC:

Monday, April 23, 2012

News Updates for the Week of April 23


1.      DOE Report Compares Life-Cycle Energy Consumption of LED Lamps with Incumbent Lighting Technologies - The first report, dealing with lifecycle energy consumption for replacement lamps, was recently published: Review of the Life-Cycle Energy Consumption of Incandescent, Compact Fluorescent, and LED Lamps. The second report will address luminaires as well, and also incorporate environmental impacts. The study found that, based on DOE’s assumption that the average LED lamp provides service life equivalent to about 22 incandescent lamps, the average LED lamp consumes 75% less energy than the average incandescent lamp. Based on DOE’s assumption that the average LED lamp’s service life is equivalent to three compact fluorescent lamps, the average lifecycle energy consumption of LED lamps is about the same as that for compact fluorescent. http://www1.eere.energy.gov/buildings/ssl/tech_reports.html

2.      Verification Testing Guidance for Luminaires - The ENERGY STAR specification for luminaires is now effective and certified luminaires are now subject to verification testing administered by EPA-recognized certification bodies (CBs). In addition to guidance already provided to CBs on verification testing, the U.S. EPA has finalized Directive #2012-01, ENERGY STAR Luminaires Verification Testing Guidance for Certification Bodies - Test Criteria, Sample Sizes and Determining Testing Failures, and Reporting to EPA. As noted in previous correspondence, this guidance limits the verification testing to core performance criteria and establishes the sample sizes needed to verify product performance. Submit any questions about this directive to Certification@energystar.gov with "Luminaires Verification Testing" in the subject line.

3.      States Seek to Ease Financing for Energy-Efficient Upgrades - Several states are experimenting with an "on-bill" financing program that aims to spur investment in energy efficiency for homes and businesses, including owners who lack capital. The "on-bill financing" program, which kicked off in January, allows homeowners to pay for efficiency upgrades using money saved by reduced energy use, which they can measure on each utility bill. The state-backed loans, which carry an interest rate of less than 3 percent, require no upfront costs, and the monthly payments are designed to be no larger than the projected savings on energy. At least nine states in recent years have passed legislation supporting or requiring adoption of such programs. http://aceee.org/research-report/e118

4.      Rebate Programs Continue to Grow Dramatically -  By providing valuable incentives and rebates to customers, energy efficiency programs have proven to be an effective way for utilities and federal/state/local governments to reduce electric demand. Funding for these programs has grown rapidly over the years and is now at an all-time high. A recent report from the Consortium for Energy Efficiency (CEE) shows that the budgets for energy efficiency electric programs were $6.8 billion in 2011. That's a 26% increase over the previous year's budgets. Of that money, $2.6 billion is earmarked specifically for commercial and industrial projects.

5.      Lighting Control Rebates Triple Since 2009 by Craig Dilouie - Utility and regional energy efficiency organization rebates and incentives have been a major driver in demand for energy-efficient lighting and controls since the early 1990s. Today, more than $6 billion in commercial lighting rebates and other incentives are offered by utilities and energy efficiency organizations covering some 80% of the United States. http://lightingcontrolsassociation.org/lighting-control-rebates-triple-since-2009/

Prescriptive Rebates
for T12 to T8 Upgrades
Type of Upgrade
Average Rebate
Across US
Lamp/ballast retrofit
$ 14.00
New fixture
$ 29.00
      6.    Last Call for T12 Rebates - Manufacturers will no longer produce most T12 bulbs after July 2012. According to NEMA, T12 sales were still 30% of the fluorescent market in late 2011. Very soon, T12 fixtures will need to be upgraded to more efficiency lighting solutions such as T8 technology.  Currently, T12 to T8 rebates are available across the country and at levels that are designed to bring the payback period to 1-2 years. More than 3,000 electric utilities offer different rebate programs and eligibility requirements. http://www.briteswitch.com/newsletter/Apr12-2.html
 
7.      Webcom Communications, in Cooperation with The Zigbee Alliance, Announces The Summer 2012 Publication of The Zigbee Resource Guide - The guide is a magazine-style solutions guide, focusing solely on products, applications and solutions for end-users and integrators of ZigBee. The objective is to introduce potential customers to the benefits of ZigBee, and to guide them to leading suppliers of ZigBee products. http://www.nxtbook.com/nxtbooks/webcom/zigbee_rg2011summer/#/0

8.      LEDs to Fill 55% of World’s Sockets by 2020 - According to Josh Baribeau’s analysis, senior associate analyst at CANACCORD Genuity, by the end of 2020, LEDs will fill at least 54.8% of lighting sockets in the world. The most optimistic of his assessments is that LEDs will be generating illumination in more than 82% of those sockets. The base forecast takes LEDs from an almost insignificant share of WW sockets in 2012 to roughly 68% over roughly 3,000 days. 4/17 TED

9.      Rebates to Bring Cost of $60 LED Bulb Philips is discounting it right away to $50 for consumers, and working on deals with electric utilities to discount it even further, by as much as $20 to $30. This means the bulb will cost anywhere from $20 to $60 at Home Depot and other outlets starting Sunday, Earth Day when the bulb that won a $10 million government contest goes on sale. 4/16 AP

10.  $60 Bulbs: Can They Save Money? Ed Crawford, CEO of Philips Lighting on ABC News 4/17… watch the video at http://abcnews.go.com/Business/video/light-brand-bulbs-16157639

11.  Top 10 Cities with the Most ENERGY STAR Certified Buildings, 2011 -

1st)      Los Angeles               659
2nd)         Washington, DC         404
3rd)           Atlanta                        359
4th)           Chicago                       294
5th)           San Francisco              270
6th)           New York                   261
7th)           Houston                      231
8th)           Dallas-Fort Worth       178
9th)           Riverside, Ca.             164
10th)       Boston                        161


12.  2011 SEPA Top 10 Utility Solar Rankings - The Solar Electric Power Association’s (SEPA) fifth annual Utility Solar Rankings analyzes the amount of new solar power interconnected by U.S. electric utilities in 2011. It covers more than 240 of the most solar-active utilities representing more than 99% of the U.S. solar electric power marketplace. This summary examines key market trends and national rankings. http://www.solarelectricpower.org/  Annual Solar Megawatts (MW-ac):
‘11 ‘10 
  1    1   Pacific Gas and Electric Co. (CA)                            287.7
  2    3   Public Service Electric & Gas Co. (NJ)                    181.3
  3    7   Arizona Public Service (APS) (AZ)                          144.4
  4    4   Southern California Edison (CA)                             138.5
  5   12   Atlantic City Electric (NJ)                                        61.2
  6    9   Jersey Central Power & Light (NJ)                           53.0
  7   15   Sacramento Municipal Utility District (CA)               52.8
  8    5   Xcel Energy - CO (CO)                                            51.3
  9   20   Long Island Power Authority (NY)                           46.9
 10  56   Xcel Energy - NM (NM)                                          45.6

13.  USGBC and The Princeton Review Release Free Guide to Green Colleges - The Princeton Review, in collaboration with the Center for Green Schools at the U.S. Green Building Council (USGBC), released the third annual edition of its free guidebook saluting the nation's most environmentally responsible "green colleges."  "The Princeton Review's Guide to 322 Green Colleges: 2012 Edition" profiles 322 institutions of higher education in the United States and Canada that demonstrate notable commitments to sustainability in their academic offerings, campus infrastructure, activities and career preparation. The 232-page book can be downloaded at: http://www.princetonreview.com/green-guide.aspx

14.  NJ’s PSE&G Installs Energy-Efficient LED Fixtures for Municipal Streetscapes and Security - Public Service Electric & Gas Company (PSE&G) has begun installing LED lights that increase reliability and security, are environmentally friendly, and decrease light pollution.  The first LED light fixture installations have been completed at Montclair State University, United Water in Haworth and in New Brunswick on George Street between Bayard Street and Liberty Street. The Rutgers University Newark campus is currently undergoing installations. The new lighting is available to municipalities and for commercial customers throughout the utility's service territory. 4/11 PRNewswire

15.  Construction Employment Increases Year-Over-Year in 171 Out of 337 Metro Areas - Construction employment increased in 171 out of 337 metropolitan areas between February 2011 and February 2012, decreased in 119, and stayed level in 47, according to a new analysis of federal employment data released recently by the Associated General Contractors of America. 4/16 EC&M

16.  ENERGY STAR Booth # 1025 at LIGHTFAIR - The ENERGY STAR program will be hosting an information booth at LIGHTFAIR® International in Las Vegas, May 9-11, 2012.  Stop by for information on the ENERGY STAR lighting portfolio including partnership opportunities, updates on program enhancements, and available ENERGY STAR marketing resources.

17.  West Coast Energy Management Congress Conference and Expo - May 23-24, 2012 / Seattle, WA at the Washington State Convention Center hosted by Puget Sound Energy. EMC is designed to give you the information you need on the latest developments and innovations available to help you meet your energy management and sustainability goals. www.energyevent.com