LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

LEED-EB V2.0 Energy & Atmosphere Credit 6: Guidance for Submission of Financial Data

This document provides guidance for preparing financial data appropriate for pursuance of LEED-EB V2.0 Energy & Atmosphere Credit 6: Documenting Sustainable Building Cost Impacts.

MS Excel spreadsheet templates are available from the USGBC that include all tables and calculations presented in this guidance document (Tables 1 through 11). These spreadsheet templates allow you to provide documentation of all building operating expenses for the previous five years (or length of building occupancy, if shorter), LEED-EB performance period building operating expenses and also track the costs and benefits of earning and maintaining LEED-EB certification. Project teams should use the spreadsheet calculators to document their cost data. Please do not fill in the tables in this file; they are shown here for illustration only.

The financial analysis of LEED-EB certified buildings present several important perspectives on the costs and benefits of LEED-EB. Because the cost of upgrading and operating a building in a sustainable way are spread out over time there are three data components that that must be gathered and tracked to earn this credit.

1. The average operating costs of LEED-EB buildings relative to the historic operating costs of these same buildings a. What are the operating costs of LEED-EB buildings relative to their historic benchmarks b. How does this difference in operating cost affect the value of LEED-EB buildings

2. The average operating costs of LEED-EB buildings relative to comparable building types and locations a. What are the operating costs of LEED-EB buildings relative to comparable buildings b. How does this difference in operating cost affect the value of LEED-EB buildings

3. The costs and benefits of specific actions taken to implement and maintain LEED-EB Certification a. How much does it cost to become LEED-EB Certified and what is the return on investment b. What are typically the greatest financial costs and benefits of greening your buildings c. How much time and money was spent to earn LEED-EB Certification: Registration and Application Fees, internal personnel hours and consultant costs

1 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Section I: Operating Cost Tracking – Comparison of Historical Building and LEED-EB Building Performance Period Expenses. (see spreadsheet calculators)

Provide documentation of annual building operating costs for up to five years (or length of building occupancy, if shorter) prior to the start of the LEED-EB Building Performance Period.

Please fill out and submit Tables 1 through 4. The data requested in these tables represents a meaningful and valuable metric for building owners and managers to analyze building performance from an economic standpoint. Completion of these tables will provide a comprehensive tool for ongoing analysis of the financial costs and benefits realized by increasingly sustainable building operations. By comparing building operating costs pre- and post-LEED certification, managers can better understand the value of both LEED-EB and of sustainable operations in general.

Please note: All operating cost data will be kept COMPLETELY confidential, except for:  The historical annual total operating plus fixed expenses per square feet numbers.  The LEED-EB Building Performance Period total operating plus fixed expenses per square feet numbers calculated on an annual basis.

Annual Operating Costs for Each Year: 1. Track operating costs annually and enter costs in Table 1 and 2 a. Break down the operating costs by facility management expense account. b. Include the entire performance period. c. If the performance period is less than 1 year, scale up to a year by (a) multiplying by (12 months/number of months in performance period) or (b) where appropriate use information for the year preceding the performance period to inform estimates of operating costs on a monthly basis using month to year ratios for each month of the preceding year. 2. Include comparison by operating expense account and total expenses with buildings of comparable type and location and with the building operating costs pre LEED-EB Building Performance Period

2 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006 LEED-EB Financial Analysis for EA Credit 6 Worksheet (see spreadsheet calculators)

Building Square Footage: ______

Total grounds area maintained by Facilities Department (acres): ______

Location (Downtown or Suburban): ______

What major city is building in or nearest: ______

Building Type: ______

Note: Tables 1 through 4 below will also be provided as MS Excel spreadsheets.

Table 1: Operating Cost Tracking - Annual Historical Building Expenses Prior to LEED-EB Building Performance Period ($) (The facility expense sub accounts are for guidance purposes. If you only know the total expense amounts within each Facility Expense Account Category, please enter expenses under the unsegregated expense rows for each applicable year under each account category.) Facility Expense Account Categories Annual and Average Historical Building Expenses Prior to LEED- EB Building Performance Period (Calendar or Fiscal Year) ($ in Gross Actual Figures) Year 1 Year 2 Year 3 Year 4 Year 5 Average Cleaning Expenses Payroll, Taxes, Fringes Routine Contract Window Washing Other Specialized Contracts Supplies/Materials Miscellaneous Trash Removal/Recycling Unsegregated Cleaning Expenses Total Cleaning Expenses Repair/Maintenance Expenses

Payroll, Taxes, Fringes Elevator HVAC Electrical Structural/Roofing Plumbing Fire/Life Safety General Building Interior General Building Exterior Parking Lot Miscellaneous Unsegregated Repair/Maintenance Expenses Total Repair/Maintenance Expenses Total Repair/Maintenance Contracts

Utility Expenses Electricity – HVAC Electricity – Non-HVAC Gas

3 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Fuel Oil Steam Chilled Water Water/Sewer Unsegregated Utility Expenses Total Utility Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Average Roads/Grounds Expenses Landscaping General Parking Snow Removal Miscellaneous/Other Unsegregated Roads/Grounds Expenses Total Roads/Grounds Expenses Security Expenses Payroll, Taxes, Fringes Contracts Equipment Miscellaneous/Other Unsegregated Security Expenses Total Security Expenses Administrative Expenses Payroll, Taxes, Fringes Allocate Overhead Fee Management Fees Professional Fees General Office Expenses Employee Expenses Miscellaneous/Other Unsegregated Admin. Expenses Total Administrative Expenses Other Expenses

Total Other Expenses Total Operating Expenses Fixed Operational-Related Expenses Real Estate Taxes Personal Property Taxes Other Tax Building Insurance License/Fees/Permits Unsegregated Fixed Expenses Total Fixed Expenses Total Operating Plus Fixed Expenses

4 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Table 2: Operating Cost Tracking - LEED-EB Building Performance Period Expenses Calculated on an Annual Basis ($) (The facility expense sub accounts are for guidance purposes. If you only know the total expense amounts within each Facility Expense Account Category, please enter expenses under the unsegregated expense rows for each applicable year under each account category.) Facility Expense Account Categories LEED-EB Building Performance Period Expenses Calculated on an Annual and Average Annual Basis (Calendar or Fiscal Year) ($ in Gross Actual Figures) Year 1 Year 2 Year 3 Year 4 Year 5 Average Post LEED-EB Certification Expenses to Date Cleaning Expenses Payroll, Taxes, Fringes Routine Contract Window Washing Other Specialized Contracts Supplies/Materials Miscellaneous Trash Removal/Recycling Unsegregated Cleaning Expenses Total Cleaning Expenses Repair/Maintenance Expenses Payroll, Taxes, Fringes Elevator HVAC Electrical Structural/Roofing Plumbing Fire/Life Safety General Building Interior General Building Exterior Parking Lot Miscellaneous Unsegregated Repair/Maintenance Expenses Total Repair/Maintenance Expenses Total Repair/Maintenance Contracts Utility Expenses Electricity – HVAC Electricity – Non-HVAC Gas Fuel Oil Steam Chilled Water Water/Sewer Unsegregated Utility Expenses Total Utility Expenses Roads/Grounds Expenses Landscaping General Parking Snow Removal

5 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Miscellaneous/Other Unsegregated Roads/Grounds Expenses Total Roads/Grounds Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Average Security Expenses Payroll, Taxes, Fringes Contracts Equipment Miscellaneous/Other Unsegregated Security Expenses Total Security Expenses Administrative Expenses Payroll, Taxes, Fringes Allocate Overhead Fee Management Fees Professional Fees General Office Expenses Employee Expenses Miscellaneous/Other Unsegregated Admin. Expenses Total Administrative Expenses Other Expenses

Total Other Expenses Total Operating Expenses Fixed Operational-Related Expenses Real Estate Taxes Personal Property Taxes Other Tax Building Insurance License/Fees/Permits Unsegregated Fixed Expenses Total Fixed Expenses Total Operating Plus Fixed Expenses

6 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006 Instructions for Tables 1 and 2

Expense Data Section (Source: 2004 BOMA’s Experience Exchange Report)

Cleaning Cleaning: All required items for both daytime and nighttime cleaning of offices, public areas, atriums, elevators, Restrooms, windows, and so forth. Includes upkeep and ordinary expenses, as well as replacement of cleaning equipment and supplies. Does not include any expenses for machine rooms and other restricted access areas.

Payroll: Payroll, taxes, and fringe benefits for directly employed cleaning personnel including salaried supervisors or managers.

Routine Contract Services: Routine day/evening cleaning expenses contracted to outside firms.

Window Washing: list costs of all contracted window-washing services.

Other Specialized Contracts: Includes all other cleaning services not covered by the routine contract service or window washing, such as drapery and carpet cleaning, etc.

Supplies/Materials: Includes ordinary cleaning supplies and materials, paper products, plus directly expensed upkeep or replacement of cleaning equipment, directly expensed tools/equipment and personnel uniforms.

Miscellaneous: All other cleaning related expenses not captured above excluding trash removal costs

Trash Removal/Recycling: Includes all trash removal and recycling expenses including medical and hazmat waste removal.

Total or summation of all cleaning expense line items

Repairs/Maintenance Repairs/Maintenance: All expenses for elevators, HVAC, electrical, structural/roof, plumbing, and other building maintenance (including common areas, parking lots and general upkeep).

Total payroll from individual item categories should be included in Payroll. Contract services and designated supplies should be included in individual item categories.

Payroll: Payroll, taxes, and fringe benefits for directly employed operating engineering and maintenance personnel, including salaried operating or chief engineer.

Elevator: Includes all elevator contract services, fees, directly expensed tools/equipment, and supplies/materials/miscellaneous expenses.

HVAC: Includes all HVAC contract services, fees, directly expensed tools/equipment, and supplies/materials/ miscellaneous expenses.

Electrical: Includes all electrical contract services, fees, directly expensed tools/equipment, and supplies/materials/miscellaneous expenses.

Structural/Roof: Includes contract services, fees and supplies/materials/miscellaneous expenses during the operating year.

Plumbing: Includes contract services, fees and supplies/materials/miscellaneous for domestic water and sewage services. Does not include piping for the mechanical system, sprinkler/standpipe system.

7 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Fire and Life Safety: Includes contract services, supplies/materials/miscellaneous, maintenance contracts, monitoring contracts, and fees.

General Building Expenses (Interior): Includes directly expensed outlays for building interiors such as pest control, signage, painting, music, carpet repairs, and other interior surface repairs.

General Building Expenses (Exterior): Includes directly expensed outlays for building exteriors such as exterior window replacement, repainting, power washing, repainting, and so forth.

Parking Lot: Include costs of all contracted (or in-house) services for parking lot repairs and maintenance. All non-repair maintenance parking costs are reported under Road/Grounds Garage/Parking expenses.

Miscellaneous: All other repair/maintenance related costs/expenses not captured above.

Total or summation of all Repair/Maintenance line items.

Portion (dollar value) of the total repair/maintenance expense that is outsourced or contracted out. If the entire repair/maintenance function is outsourced or a single source contract, this line will equal line above.

Utilities Utilities: All utilities expensed to the building. Includes any energy that is sub-metered, even if you are receiving income for it; show the total expense, not the net expense after tenant reimbursement. If the utilities are directly metered to the tenant, then estimate the expense and indicate on the form that your numbers are estimated by writing “estimated” in the margin.

Electricity: Total gross electrical utility expense for the building. Please breakout your Electricity costs by HVAC charges and Non-HVAC charges if possible. If a breakout is not possible, report total electricity costs on HVAC charges line.

Gas: Total gross gas utility expense for the building

Fuel Oil: Total gross fuel oil utility expense for the building

Purchased Steam: Total gross purchased steam utility expense for the building. This is the cost of utilizing steam purchased from any outside source.

Similarly, include the purchase of hot water expense here.

Purchased Chilled Water: Total gross purchased chilled water utility expenses for the building.

Water/Sewer: Total gross water/sewer expenses for the building.

Roads/Grounds Roads/Grounds: Any expense related to exterior maintenance (exclude parking lot r/m) other than the building structure (or related remote mechanical equipment), such as landscaping, snow removal, site signage, site lighting, and so forth. Note: “If the parking lot charges a parking fee, do not include any of its maintenance costs here; see Parking Expenses.

Landscaping: Includes expenses associated with salaried employees such as payroll taxes and benefits, landscaping contract, directly expensed tools/equipment, outdoor sprinklers, and supplies/materials/miscellaneous.

8 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Garage/Parking (free): Includes expenses associated with salaried employees involved in the operation of “free” building parking, contracts, fees, utilities, cleaning, r/m, directly expensed tools/equipment, and supplies/materials/miscellaneous. If income is derived from the parking operation then record all expenses under question 42. Exclude all parking lot related r/m costs (report under Repairs/Maintenance: Parking Lot expenses)

Snow Removal: Includes long-term contracts, directly expensed tools/equipment as well as supplies/materials/ miscellaneous.

Other Roads/Grounds Expense: All other supplies/materials/miscellaneous expenses not capture above as well as expenses associated with exterior lighting and sign age.

Security Security: Expenses related to the security of tenants and buildings

Payroll, Taxes, Fringes: Payroll, taxes, and fringe benefits for directly employed security personnel.

Contract: Total of all security related contracts; include both guard and monitoring contracts. Contracts/Guard: Expenses of individuals and/or firms contracted to perform specific security tasks. Contracts/Monitoring: Includes expenses/contracts for security monitoring programs.

Equipment: Includes all directly expensed security equipment/systems plus maintenance expenses associated with them and ordinary supplies necessary to operate a security program such as uniforms, batteries, control forms, access cards, etc. Also include Vehicle Lease; including cost of lease/vehicle and all associated maintenance for specific use by security personnel. Example - Golf cart, security car

Miscellaneous/Other Security Expenses: All other security expenses not captured above.

Administrative Administrative: Expenses directly connected with administration of the building. Does not include general maintenance/operation costs.

Payroll: Payroll, taxes, and fringe benefits for directly employed administrative personnel such as building manager, building secretary, and assistant building manager. (Engineering, maintenance, and other building staff should be allocated to the appropriate functional categories.) If you checked “NO” to question 20A then this line should not be blank.

Allocated Admin. Fee: Pro rata share of any or all Administrative overhead charges/fees assigned to this building. Management Fee: For a building managed under a management contract. If you checked “YES” under question 20A then this line item should not be blank.

Professional Fees: Pertaining to the operation of the building, such as labor disputes, contractor agreements, and so on. Also includes accounting, data processing, and auditing costs to the extent necessary to satisfy tenant lease requirements and permanent lender requirements. Does not include legal costs pertaining to leasing nor should it include costs of owner’s income tax work, partnership reporting requirements, or other non-operating accounting work.

General Office Expense: General expense of running and maintaining the building manager’s office: supplies, furniture, telephones, temporary office help, postage, and so on plus such things as dues/subscriptions, classified ads for hiring/contract solicitation and E/O insurance. Includes “office rent” for the building manager’s office calculated at fair market value.

Employee Expenses: Includes travel and entertainment, educational programming, and car allowances. [45 600]

9 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Miscellaneous/Other Administrative Expense: All other Administrative expenses not capture above. Examples include - Concierge Service, Merchant Association Dues.

Total Operating Expenses Total or summation of Cleaning, Repairs/Maintenance, Utilities, Roads/Grounds, Security and Administrative expenses.

Fixed Operational-Related Expenses Fixed Operational-Related Expenses: Includes real estate taxes, personal property tax, other taxes, building insurance, and any related licenses, fees, and permits. Exclude any fixed expenses that are not operational- related such as ground rent, which is treated as a financial expense. Include the gross tax amount or what the taxes would have been if money was owed - do not Net out any refunds or reimbursements.

Real Estate Taxes: Total land and building real estate taxes.

Personal Property Tax: Total Personal Property Taxes

Other Taxes: Includes any kind of annual or periodic or excise tax. Payroll taxes should be included with the appropriate Payroll categories; do not include ground rent.

Building Insurance: All types of building insurance, including fire, boiler and other. Does not include errors and omissions (General Office Expense), insurance related to employee benefits or, in the case of corporate facilities, liability insurance that would normally be paid by tenants.

Licenses/Fees/Permits: All license, fees, and permit expenses associated with the above taxes and insurance.

Table 3: Operating Cost Tracking – Comparison of Historical Building and LEED-EB Building Performance Period Expenses Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Facility Expense Total Average Average Average Comparison Comparison Account Categories Average Annual Annual Annual [$ / ft2] [%] (Column Annual LEED-EB Historical Historical (Column 4 – 2 / Column LEED-EB Building Baseline Baseline Column 2) 4) × 100% Building Costs Building Building Costs [$ / [$ / ft2] Costs ($) Costs [$ / Account] ft2] Cleaning Repair/Maintenance Utilities Roads/Grounds Security Administrative Other Total Operating Expenses

Total Fixed Operational- Related Expenses

Total Operating Plus Fixed Expenses

10 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Calculating the Increase in Value of the LEED-EB Building through Reduced Operating Costs Relative to Historic Baselines (see spreadsheet calculators)

Using the total operating savings relative to the historic baseline year from Table 3, calculate the resulting increase in the value of the LEED-EB Building in Table 4.

Table 4: Increase in Value of LEED-EB Building through Reduced Operating Costs Relative to Historic Average Baseline Row A Annual Operating Cost per Square Foot of Historic Average Baseline (From $ /ft2 Table 3, Column 4) Row B Operating Cost per Square Foot of LEED-EB Building's Performance Period $ /ft2 Calculated on an Annual Basis (From Table 3, Column 2) Row C Annual Operating Cost Savings per Square Foot (Row A minus Row B) $ /ft2 Row D Floor Area of LEED-EB Building (ft2) ft2 Row E Total Annual Operating Cost Savings for LEED-EB Building Performance $ Period Relative to Historic Baseline Year (Row C × Row D) Row F Amount Value of Building is Increased by this Reduction in Operating $ Costs* ($) (Row E × 10) **Rule of Thumb: Real estate is often priced at 8 to 10 times its net operating income. Therefore, annual operating cost reductions can be multiplied by up to 10 to get an increased value to the building.

11 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Section II: Operating Cost Tracking – LEED-EB Building Performance Period versus Comparable Building Expenses (see spreadsheet calculators)

Compare the annual building operating costs for LEED-EB Certified Building with those of comparable building types in the same area.

Please fill out and submit Tables 5, 6, and 7 to provide the comparison of annual building operating costs for the LEED-EB Building with those of comparable buildings. Comparable building mean buildings of a comparable type, use and located in the same (or a similar) climactic region.

The preference is that comparable building data be drawn from sources that provide the average performance of many buildings. If this type of data is not available, create average data for comparable buildings in your area using the data from as many individual buildings as you can obtain. Sources for operating cost information on comparable buildings include 2004 BOMA’s Experience Exchange Report (EER), IFMA and APPA 2001-2002 Comparative Costs & Staffing Report for Educational Facilities. Please contact USGBC LEED-EB technical support if you need assistance with locating building cost comparison data from your area.

Table 5: Comparable Building Expense Data Sources Source or Building Background Comparable Comparable Comparable Comparable Data Building Source Building Source Building Source Building Source No. 1 No. 2 No. 3 No. 4 Source or Building Name Building Type (If Applicable) Building Location (If Applicable) Building Square Footage (If Applicable)

Table 6: Operating Cost Tracking – Comparable Building Expenses Column 2 Column 3 Column 4 Column5 Column 6 Facility Expense Source 1: Source 2: Source 3: Source 4: Average of Account Categories Comparable Comparable Comparable Comparable All Sources Building Building Costs Building Building of Costs [$ / ft2] [$ / ft2] Costs [$ / ft2] Costs [$ / ft2] Comparable Building Costs [$ / ft2] Cleaning Repair/Maintenance Utilities Roads/Grounds Security Administrative Other Total Operating Expenses

Total Fixed Operational- Related Expenses

Total Operating Plus Fixed Expenses

12 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Table 7: Operating Cost Tracking – LEED-EB Building Performance Period versus Comparable Building Expenses Column 2 Column 3 Column 4 Column 5 Facility Expense Average Annual Average of All Sources Comparison [$ / Comparison [%] (Column Account Categories LEED-EB of Comparable ft2] (Column 3 – 2 / Column 3) × 100% Building Costs Building Costs [$ / ft2] Column 2) [$ / ft2] Cleaning Repair/Maintenance Utilities Roads/Grounds Security Administrative Other Total Operating Expenses

Total Fixed Operational- Related Expenses

Total Operating Plus Fixed Expenses

Calculation of Increase in Value of the LEED-EB Building through Reduced Operating Costs Relative to Comparable Buildings (see spreadsheet calculators)

Using the total operating savings relative to comparable buildings from Table 6, use Table 8 to calculate the resulting increase in the value of the building.

Table 8: Value of Maintaining Difference in Operating Costs Relative to Average for Comparable Buildings in Same Area Row A Annual Operating Cost per Square Foot of Comparable Buildings (From Table 6, $ /ft2 Column 6) Row B Operating Cost per Square Foot of LEED-EB Building Performance Period $ /ft2 Calculated on an Annual Basis (From Table 3, Column 2) Row C Annual Operating Cost Savings per Square Foot (Row A minus Row B) $ /ft2 Row D Floor Area of LEED-EB Building (ft2) ft2 Row E Total Annual Operating Cost Savings for LEED-EB Building Performance Period $ Relative to Comparable Buildings (Row C × Row D) Row F Amount Value of Building is Increased by this Reduction in Operating Costs* ($) $ (Row E × 10) **Rule of Thumb: Real estate is often priced at 8 to 10 times its net operating income. Therefore, annual operating cost reductions can be multiplied by 10 to get an increased value to the building.

13 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Section III. Identifying Costs and Benefits of Specific Actions Taken to Implement and Maintain LEED- EB Certification (see spreadsheet calculators)

Part A. Identify the costs and cost savings generated by key actions undertaken as part of the LEED-EB implementation and certification process.

Track costs and benefits of specific LEED-EB-related building and site improvement actions using Table 9. 1. Include any incremental costs and benefits related to the pursuit of LEED-EB prerequisites or credits. To identify ‘incremental costs and benefits’: a. Identify the beginning and end date of the LEED-EB implementation period for your building. The implementation period runs from the date your organization decided to pursue LEED-EB to the date of formal LEED-EB certification. (The default start date for the LEED-EB implementation period is the LEED-EB registration date. If you know your organizational decision to implement LEED-EB was made earlier, use that date as the start date for the implementation period.) b. Include only the costs of actions that took place during the LEED-EB implementation period. c. For each action taken during the LEED-EB implementation period, estimate how much of the cost of the action should be allocated to end-of-life replacement versus improving performance for LEED-EB. (For example: a 40 year old boiler with an estimated 10 years of remaining life is replaced with a high efficiency boiler. A suitable allocation for this action would allocate 75% of the replacement cost to end-of-life replacement and 25% to increased energy efficiency (improved performance under LEED- EB). Therefore, only 25% of the replacement cost would be included in Table 9. d. When no other reasonable method for estimation is available, a 75/25% allocation should be considered the default. e. Note: Staff time related to LEED-EB should not be included in Table 9; incremental staff time costs are reflected in Table 10 below.

If there are components of your LEED-EB project that have significant financial benefits that you have quantified please also include these in Table 9. . Because the incremental cost of increased performance is included in the costs for LEED-EB, include all the benefits for each action. . Calculate the simple payback on incremental costs by dividing the incremental costs for each measure by the associated annual incremental savings.

Table 9: Significant LEED-EB Project Implementation Financial Costs and Benefits Column 2 Column 3 Column 4 Column 5 Column 6 Associated Total Gross Incremental Annual Net Simple Payback Significant Prerequisites Costs of Costs of Operating on Incremental Incremental and/or Implementation Implementation Savings Costs (Years) Actions* Credits ($) ($) ($) (Col 4 / Col 5)

Totals *Please attach a brief narrative, where possible, describing each incremental action listed in Table 9.

14 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Examples:

Example 1 – Chiller Replacement Building A replaced a chiller which had reached its end-of-life with a high-efficiency chiller one month after registering for LEED-EB. The cost of implementation would be the cost difference between replacing the existing chiller with a standard efficiency chiller versus the cost of the high-efficiency chiller. Cost benefits would include the annual energy cost savings of the high-efficiency chiller versus the standard efficiency chiller.

Example 2 – Recycling Program Building B created a recycling program to meet the requirements of MR Prerequisite 1.2 and to pursue MR Credits 5.1–5.3. Implementation costs would include the cost of any recycling bins or other infrastructure purchased for the program, and any educational materials or events designed to promote occupant participation in the program. Cost savings would include decreased waste disposal costs and possible revenue from selling recycled material.

Example 3 – Occupancy Sensors Building C installed occupancy sensors for lighting and water faucets. The cost of implementation would include the entire cost of the equipment (because no equipment replacements took place). Cost savings would include energy cost savings from reduced lighting use as well as water cost and energy cost savings from reduced water consumption and reduced water heating/pumping.

Part B. Identify LEED-EB registration, application development and certification costs.

Track the costs of LEED-EB registration, application development and final certification process using Table 10. This cost analysis should include:  Consultant fees and charges  Registration, application and other necessary fees  Hours of internal staff time and incremental cost

Table 10: LEED-EB Certification Process Costs Line Description of Certification Process Costs Hours Costs ($) Number 1 LEED-EB Registration Fee 2 LEED-EB Application Fee 3 Internal staff time (Gross)* 4 Internal staff time (Incremental)** 5 Internal staff costs (Incremental)*** 6 Consultants**** 7 Other (please list) 8 Other (please list) 9 Totals

*Note: Include all internal staff hours spent on the LEED-EB process regardless of whether additional staff was hired. **Note: Internal staff time (Incremental) is a subset of Internal staff time (Gross) that includes any additional staff hired or any Overtime hours incurred by existing staff to assist with the LEED-EB Certification Process. ***Note: Internal staff costs (Incremental) equals internal staff time (Incremental) hours times salary rates per hour of incremental staff. ****Note: If a LEED AP Consultant was hired to assist with the building project, only include the costs in Table 10 and not Table 9 under LEED-EB IUOM Credit 2.

15 LEED-EB V2.0 Credit EA 6 Guidance 7 August 2006

Part C. Summarize LEED-EB Project Quantified Costs, Benefits, and Payback

Table 11 integrates findings from Table 9 and Table 10 to summarize the costs and savings of LEED-EB certification.

Table 11: Summary of LEED-EB Project Costs, Savings, and Payback Column 2 Column 3 Row A Total Incremental Costs of Implementation (From Table 9, Column 4) $ Row B Total LEED-EB Certification Process Costs (From Table 10, Line 9) $ Row C Total LEED-EB Project Incremental Costs (Row A + Row B) $ Row D Total Annual Net Savings (From Table 9, Column 5) $ Row E Simple Payback of Total LEED-EB Incremental Costs (Years) (Row C / Row D) Yrs. Row F Floor Area of Building ft2 Row G Total LEED-EB Building Project Incremental Costs per Square Foot (Row C / Row F) $ /ft2 Row H Total Annual Net Savings per Square Foot (Row D / Row F) $ /ft2 Row I Life Cycle Net Present Value (Assumes a 5.0 % interest rate and 15 year period) $ Row J Life Cycle Net Present Value per Square Foot (Row I / Row F) $ /ft2

16