Case Study

Stovroff Towers

Deep energy retrofit creates new affordable housing

This case study was chosen as part of the Empire Building Challenge competition. Click here to learn more about the Empire Building Challenge competition.

Originally built in 2003, Stovroff Towers is a four-story, 74,000 square-foot senior living facility located in Amherst, NY. WinnDevelopment (Winn) plans to acquire the Property and implement a comprehensive renovation, converting the 120 single occupancy units into eight (8) studio apartments and fifty-eight (58) one-bedroom apartments, while investing in high-efficiency, low-carbon upgrades. The retrofit project prioritizes high-performance envelope upgrades and efficient electrification to transform Stovroff Towers and reduce site energy use intensity (EUI) by 78.30%. The project will be financed in part with low-income housing tax credit (LIHTC) equity, allowing the decarbonization strategies to be implemented in a single, holistic renovation slated for completion by 2027.

Over the past decade, Winn has become an industry leader, and partner, in sustainable development, renewable energy, and building science. Winn is a long-term owner committed to tackling housing shortages and insecurity while also addressing climate change, energy equity, and resiliency for our communities. Winn is a leader in decarbonization, with several deep energy retrofit, and all-electric, high-performance projects completed or in development. 

Winn has a pipeline of acquisition rehabilitation projects planned throughout the Northeast and the Mid-Atlantic. In New York State alone, Winn manages over 11,000 units of housing and owns eight (8) properties scheduled for capital improvements and/or comprehensive renovations between 2030-2040. Winn is committed to deploying elements of our Stovroff Towers scope at these other buildings as they reach recapitalization and/or at the time of equipment failure.

Stovroff Towers
Energy Savings

78%

The LIHTC-renovation will enhance the naturally occurring affordable housing at Stovroff Towers and preserve the property’s long-term affordability. The redevelopment project will invest in energy reduction measures that reduce site energy use intensity over 78%, transforming Stovroff Towers into a vibrant community for vulnerable populations.

Testimonial

“NYSERDA’s Empire Building Challenge (EBC) inspired a creative and efficient pre-development phase that will make the renovation of Stovroff Towers truly transformative. This Project will serve as an inspiring demonstration for similar buildings committed to reducing their carbon footprint in a meaningful way.”

Christina McPike
Vice President, Energy & Sustainability
WinnCompanies

Energy Savings

The EBC Project demonstrates geothermal and distributed hydronic systems as a replicable retrofit technology in cold climates. Stable ground temperatures will enable design of a geothermal borefield that includes 12 bores drilled to 500 ft depth, providing 34 tons of heating and cooling, which will meet 100% of the annual heating and cooling load.

A baseline assessment is key to understanding current systems and performance, then identifying conditions, requirements or events that will trigger a decarbonization effort. The assessment looks across technical systems, asset strategy and sectoral factors.

Building System Conditions
  • System Failure
  • Equipment nearing end-of-life
  • New heat source potential
  • Comfort improvements
  • Indoor air quality improvements
  • Facade maintenance
  • Resilience upgrades
  • Efficiency improvements
Asset Conditions
  • Repositioning
  • Recapitalization
  • Capital event cycles
  • Tenant turnover/vacancy
  • Building codes
  • Owner sustainability goals
Market Conditions
  • Technology improves
  • Policy changes

Since its completion, Stovroff Towers has suffered long-term programmatic issues due to single-occupancy efficiency units without full-service kitchens and limited on-site resident services. Vacancy rates have averaged 75-80%, leading to a severe operational deficit and extensive capital needs. These circumstances catalyzed Winn’s involvement at the site, which will utilize LIHTC financing from New York State’s Homes and Community Renewal (HCR) to fund a major recapitalization and comprehensive renovation that addresses capital and operational needs. Winn has a successful track record developing and preserving housing in the upstate region, where the relative cost of construction and energy is low and need for high quality affordable housing is high. The property’s existing needs informed the decarbonization scope, which will not only result in significant energy reduction and carbon emissions, but will improve the building’s passive resiliency, durability, and indoor living environment. The high efficiency all-electric equipment and building envelope upgrades will also reduce operating costs for the building owner and future residents and contribute to New York State’s building-sector decarbonization goals. The decarbonization retrofit scope is well-aligned with the Climate Leadership & Community Protection Act (CLCPA) and NYS HCR’s Existing Buildings Sustainability Guidelines and provides replicable, cost-efficient solutions that can be applied to future renovations and recapitalization events.

Effective engineering integrates measures for reducing energy load, recovering wasted heat, and moving towards partial or full electrification. This increases operational efficiencies, optimizes energy peaks, and avoids oversized heating systems, thus alleviating space constraints and minimizing the cost of retrofits to decarbonize the building over time.

Existing Conditions

This diagram illustrates the building prior to the initiation of Strategic Decarbonization planning by the owners and their teams.

Click through the measures under “Building After” to understand the components of the building’s energy transition.

Sequence of Measures

2025

Building System Affected

  • heating
  • cooling
  • ventilation
Stovroff Towers before
Stovroff Towers after
Envelope Upgrades
Geothermal System and Terminal WSHPs
Ventilation Upgrades
CO2 Heat Pump for DHW
Electrical Upgrades and Smart Thermostats
Solar PV

Making a business case for strategic decarbonization requires thinking beyond a traditional energy audit approach or simple payback analysis. It assesses business-as-usual costs and risks against the costs and added value of phased decarbonization investments in the long-term.

Retrofit Costs

Decarbonization Costs

$13.2M

Cost of ECM #1 – Exterior Envelope Insulation: 2.5M.

Cost of ECM #2 – Triple Pane Windows: 1.2M.

Cost of ECM #3 – Roof Replacement: 1.1M.

Cost of ECM #4 – Geothermal/Water-Source-Heat-Pump System: 3.1M.

Cost of ECM #5 – DHW Central CO2 Air-to-Water Heat Pump: 805k.

Cost of ECM #6 – Energy Recovery Ventilation: 2.2M.

Cost of ECM #7 – Electrical Upgrades: 2.1M.

Cost of ECM #8 – Rooftop Solar PV: 194k.

Cost of ECM #9 – Smart Thermostat: included in mechanical number.

Avoided Risks

Business-as-Usual Costs

$4.6M

Energy cost savings: 37k.

BAU cost of system replacement/upgrades: 4.5M.

Avoided Risks

Business-as-Usual Risks

$0

Added Value

Decarbonization Value

$8.4M

Incentives/Tax credits: 1.4M.

Valuation: 7M.

Net Present Value

TBD

Net difference between the present value of cash inflows and outflows over a period of time.

The decarbonization scope of work was selected because it achieves performance objectives while limiting capital cost, maximizing operational cost and carbon emissions savings, and preserving original architectural features important to the local community. The total cost of the ECMs is approximately $13,240,378 and the total development cost of the renovation is $43,180,406. While these costs are high, they are in line with similar deep energy retrofit projects, far more affordable than new construction, and beneficially create new deed restricted housing for the State of New York. The EBC scope is anticipated to reduce operational costs by $37,000 annually, which will help with long-term operations; however, energy cost savings alone do not support overall Project costs. 

This level of investment is only possible with state resources such as NYSERDA’s Empire Building Challenge funding and LIHTC financing, which will allow Winn to create new affordable housing that is also energy efficient and fossil fuel free. In the absence of a LIHTC award, another real estate developer could acquire the property and upgrade interiors and replace systems in kind for $4.5 million, which would be a short term and short-sighted undertaking that invests in new gas infrastructure. The sustainability goals for the project are integral to the property’s transformation, the marginal cost of which cannot be supported with energy cost savings alone.  However, the true net cost of ECMs, less business-as-usual in-kind replacement, NYSERDA funding, investment tax credit, and other incentives, is $4,327,764, which can be supported with debt and equity. The decarbonization roadmap provides many benefits to Stovroff Towers, including carbon neutrality by 2040, futureproofing against carbon mandates and stranded assets, and marketability. Stovroff Towers are better and stronger with the decarbonization scope and are worthy of this level of investment.  

An emissions decarbonization roadmap helps building owners visualize their future emissions reductions by outlining the CO2 reductions from selected energy conservation measures. This roadmap is designed with a phased approach, considering a 20- or 30-year timeline, and incorporates the evolving benefits of grid decarbonization, ensuring a comprehensive view of long-term environmental impact.

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A baseline assessment is key to understanding current systems and performance, then identifying conditions, requirements or events that will trigger a decarbonization effort. The assessment looks across technical systems, asset strategy and sectoral factors.

Building System Conditions
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Effective engineering integrates measures for reducing energy load, recovering wasted heat, and moving towards partial or full electrification. This increases operational efficiencies, optimizes energy peaks, and avoids oversized heating systems, thus alleviating space constraints and minimizing the cost of retrofits to decarbonize the building over time.

Making a business case for strategic decarbonization requires thinking beyond a traditional energy audit approach or simple payback analysis. It assesses business-as-usual costs and risks against the costs and added value of phased decarbonization investments in the long-term.

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This guide from The Clean Fight and RMI helps building owners and managers understand how high-temperature heat pumps can decarbonize steam and hot-water space heating systems. It outlines key benefits, technology basics, example products, and strategies for effective retrofit integration. High-temperature heat pumps offer a new, less disruptive path to electrification for buildings with steam or hot water distribution.

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Charrette Templates: Supporting Preliminary Retrofit Plan Review

A baseline assessment is key to understanding current systems and performance, then identifying conditions, requirements or events that will trigger a decarbonization effort. The assessment looks across technical systems, asset strategy and sectoral factors.

Building System Conditions
Asset Conditions
Market Conditions

Effective engineering integrates measures for reducing energy load, recovering wasted heat, and moving towards partial or full electrification. This increases operational efficiencies, optimizes energy peaks, and avoids oversized heating systems, thus alleviating space constraints and minimizing the cost of retrofits to decarbonize the building over time.

Making a business case for strategic decarbonization requires thinking beyond a traditional energy audit approach or simple payback analysis. It assesses business-as-usual costs and risks against the costs and added value of phased decarbonization investments in the long-term.

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An emissions decarbonization roadmap helps building owners visualize their future emissions reductions by outlining the CO2 reductions from selected energy conservation measures. This roadmap is designed with a phased approach, considering a 20- or 30-year timeline, and incorporates the evolving benefits of grid decarbonization, ensuring a comprehensive view of long-term environmental impact.

Charrette Overview

A charrette is a focused, collaborative convening of diverse stakeholders. In planning a building decarbonization project, charrettes are a powerful tool for establishing a holistic understanding of a building’s existing conditions and needs, aligning stakeholders, developing creative solutions, and accelerating the retrofit design process.

Context

While charrettes can be used within multiple contexts, this resource has been developed to support the review of a preliminary retrofit plan. The preliminary retrofit plan scope is developed based on existing building conditions, high-level energy data and calculations, as well as the team’s expertise and prior project experience. Having a charrette at this point in the process allows for early feedback about the retrofit scope and alignment with project goals. It provides an opportunity for collaborative problem-solving and the development of creative solutions, as multi-disciplinary stakeholders are brought together to iterate on the retrofit. More detailed energy and financial analysis will occur after the charrette and may drive scope change as the team uses results to optimize the retrofit.

Templates Overview

The following templates have been developed to reduce the effort required to include a charrette in retrofit planning and guide project teams through the charrette process. The format of the templates is intentionally basic so your organization(s)’ presentation format and logos can easily be added.

The templates are intended to be used by the design team to gather feedback and develop consensus from project stakeholders on the following topics:

  • Project goals
  • Retrofit triggers
  • Proposed retrofit plan

Three templates are available for download and are designed to work together. These include:

Pre-Read Template: Use this template to develop a project-specific pre-read document that can help inform the charrette discussion. This template offers a preset agenda for the charrette and provides space to clearly define project goals, trigger events, and a high-level summary of the retrofit plan. To maximize benefit from the charrette it is important that attendees arrive with a solid understanding of the information provided in the pre-read. Therefore, it is recommended the document remain as concise as possible and is sent to attendees with sufficient time for them to review.

Download the Pre-Read Template

Charrette Presentation Template: This easily customizable slide deck template provides a framework and content to guide project teams through the charrette. The intended outcomes from the charrette are level setting stakeholders on the project’s status and plans, collecting feedback, and ideation.

Download the Presentation Template

Post-Charrette Report Template: Use this template to capture outputs from the charrette and distribute to project stakeholders. The report is intended to support the team in coming to consensus on goals, retrofit triggers, and the preliminary retrofit plan. Once finalized, it can be used as a basis for moving into the detailed analysis phase.

Download the Post-Read Template

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Strategic Decarbonization Planning Training Series

A baseline assessment is key to understanding current systems and performance, then identifying conditions, requirements or events that will trigger a decarbonization effort. The assessment looks across technical systems, asset strategy and sectoral factors.

Building System Conditions
Asset Conditions
Market Conditions

Effective engineering integrates measures for reducing energy load, recovering wasted heat, and moving towards partial or full electrification. This increases operational efficiencies, optimizes energy peaks, and avoids oversized heating systems, thus alleviating space constraints and minimizing the cost of retrofits to decarbonize the building over time.

Making a business case for strategic decarbonization requires thinking beyond a traditional energy audit approach or simple payback analysis. It assesses business-as-usual costs and risks against the costs and added value of phased decarbonization investments in the long-term.

Retrofit Costs

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Avoided Risks

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Avoided Risks

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Net Present Value

An emissions decarbonization roadmap helps building owners visualize their future emissions reductions by outlining the CO2 reductions from selected energy conservation measures. This roadmap is designed with a phased approach, considering a 20- or 30-year timeline, and incorporates the evolving benefits of grid decarbonization, ensuring a comprehensive view of long-term environmental impact.

About the Series

NYSERDA and Building Energy Exchange, in collaboration with RMI, University of Cincinnati, and Ember Strategies, are excited to offer a comprehensive three-part Strategic Decarbonization Planning training series designed to help industry professionals tackle complex retrofit projects with confidence. Tailored for professionals in engineering, real estate, and technology, this training series will equip participants with the tools and knowledge to drive practical, cost-effective low-carbon retrofits in large buildings. Grounded in lessons learned from NYSERDA’s Empire Building Challenge and their innovative retrofit demonstration projects, participants will learn how to:

  • Identify effective retrofit strategies by evaluating technical solutions and real estate conditions;
  • Make the case for low-carbon retrofits with compelling business narratives that resonate with decision-makers; and
  • Turn plans into action by creating clear, step-by-step decarbonization roadmaps for real-world projects.

Live training sessions for all three courses are coming this spring. Read more about our high-impact, solutions driven training series below:

Course 1

SDP: RED Framework and Technical Solutions (1.5 AIA LU)

This first course of the series will explore Resource Efficient Decarbonization (RED) as a replicable solutions framework used to develop carbon neutrality roadmaps for large buildings in cold climates. Using real-world examples from Empire Building Challenge retrofit projects, participants will learn how to apply the RED framework to create comprehensive, long-term decarbonization plans for their buildings. Additionally, the training will review a range of technical solutions for decarbonizing buildings, highlighting how prioritization of these technologies can optimize retrofits.

Sign up for March 18

Take Course 1 On-Demand

Course 2

SDP: Building the Business Case for Better Decarbonization (1.5 AIA LU)

The second course will focus on the finance and asset planning components of strategic decarbonization. Participants will learn how to evaluate and align technical solutions with economic realities and long-term asset strategies to inform decision-making. This course will also provide guidance on crafting compelling business case narratives that build stakeholder support and unlock investment for retrofits. By the end of the training, participants will be equipped to develop persuasive business cases that advance building decarbonization projects.

Sign up for March 18

Take Course 2 On-Demand

Course 3

Let’s Decarbonize! A Hands-on Building Decarbonization Workshop

The third course of the series will be a highly interactive session offering a hands-on introduction to building decarbonization planning – delivered in a dynamic, game-based format. The session begins with a brief review of key concepts from the first two courses, then, participants will break into small groups to create a mock decarbonization plan for a real-world building scenario. Teams will evaluate strategies to reduce greenhouse gas emissions while weighing factors such as costs, trigger events, and other site- specific considerations. Come prepared to collaborate, apply your skills, and dive into the decision- making process behind effective building decarbonization.

This material was developed at the University of Cincinnati by Amanda Webb, Barry Abramson, Katherine Castiello Jones, and Heather Cheng. It is based upon work supported by the National Science Foundation under Award No. 2339386.

Sign up for March 19

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Effective engineering integrates measures for reducing energy load, recovering wasted heat, and moving towards partial or full electrification. This increases operational efficiencies, optimizes energy peaks, and avoids oversized heating systems, thus alleviating space constraints and minimizing the cost of retrofits to decarbonize the building over time.

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An emissions decarbonization roadmap helps building owners visualize their future emissions reductions by outlining the CO2 reductions from selected energy conservation measures. This roadmap is designed with a phased approach, considering a 20- or 30-year timeline, and incorporates the evolving benefits of grid decarbonization, ensuring a comprehensive view of long-term environmental impact.

A global survey of 14 high-rise multifamily retrofit profiles that achieved deep energy reductions.

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A baseline assessment is key to understanding current systems and performance, then identifying conditions, requirements or events that will trigger a decarbonization effort. The assessment looks across technical systems, asset strategy and sectoral factors.

Building System Conditions
Asset Conditions
Market Conditions

Effective engineering integrates measures for reducing energy load, recovering wasted heat, and moving towards partial or full electrification. This increases operational efficiencies, optimizes energy peaks, and avoids oversized heating systems, thus alleviating space constraints and minimizing the cost of retrofits to decarbonize the building over time.

Making a business case for strategic decarbonization requires thinking beyond a traditional energy audit approach or simple payback analysis. It assesses business-as-usual costs and risks against the costs and added value of phased decarbonization investments in the long-term.

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As climate-forward policies have gained momentum and high-performance building technologies have continued to advance, building owners are feeling increasing pressure to decarbonize while navigating a growing array of retrofit options and requirements. How can project teams chart a course through this evolving and overwhelming landscape to confidently plan and implement decarbonization retrofits?

The newly released Guide to Strategic Decarbonization Planning, produced by ASHRAE, U.S. Green Building Council (USGBC), and supported by New York State Energy Research and Development Authority (NYSERDA), presents a comprehensive suite of best practices to operationalize deep decarbonization in buildings by following the strategic decarbonization planning (SDP) framework. SDP is a proven approach to decarbonization planning that integrates holistic technical solutions with pragmatic asset management strategies, enabling project teams to deliver cost-effective, flexible decarbonization projects.

Join ASHRAE, USGBC, and the Retrofit Playbook for Large Buildings team on September 23rd to learn more about the Guide to Strategic Decarbonization Planning and explore how it connects with the tools, case studies, and planning resources available on the RetrofitPlaybook.org. Whether you’re just getting started or refining a long-term roadmap, this session will help you learn how to apply the SDP framework and other practical resources to actualize low-carbon, future-ready building retrofits.

Opening Remarks

Sophie Cardona, Senior Project Manager, NYSERDA

Moderator

Molly Dee-Ramasamy, Director of Deep Carbon Reduction Group, JBB

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Laurie Kerr, Principal Climate Advisor, USGBC
Phil Keuhn, Principal, RMI

Panelists

Adam Hinge, Managing Director, Sustainable Energy Partnerships
Laurie Kerr, Principal Climate Advisor, USGBC
Phil Keuhn, Principal, RMI
Laura Humphrey, Senior Director of Energy & Sustainability, L+M Development Partners

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Effective engineering integrates measures for reducing energy load, recovering wasted heat, and moving towards partial or full electrification. This increases operational efficiencies, optimizes energy peaks, and avoids oversized heating systems, thus alleviating space constraints and minimizing the cost of retrofits to decarbonize the building over time.

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This resource is available to aid design teams and building owners in navigating the complexities of rapidly shifting supply chains. It will provide up-to-date information on lead times and pricing for key equipment essential to the design and implementation of low-carbon building and retrofit projects in large commercial buildings. It will be updated semi-annually to reflect changes in the supply chain.

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The Role of Design Charrettes in Building Decarbonization Planning

A baseline assessment is key to understanding current systems and performance, then identifying conditions, requirements or events that will trigger a decarbonization effort. The assessment looks across technical systems, asset strategy and sectoral factors.

Building System Conditions
Asset Conditions
Market Conditions

Effective engineering integrates measures for reducing energy load, recovering wasted heat, and moving towards partial or full electrification. This increases operational efficiencies, optimizes energy peaks, and avoids oversized heating systems, thus alleviating space constraints and minimizing the cost of retrofits to decarbonize the building over time.

Making a business case for strategic decarbonization requires thinking beyond a traditional energy audit approach or simple payback analysis. It assesses business-as-usual costs and risks against the costs and added value of phased decarbonization investments in the long-term.

Retrofit Costs

Decarbonization Costs

Avoided Risks

Business-as-Usual Costs

Avoided Risks

Business-as-Usual Risks

Added Value

Decarbonization Value

Net Present Value

An emissions decarbonization roadmap helps building owners visualize their future emissions reductions by outlining the CO2 reductions from selected energy conservation measures. This roadmap is designed with a phased approach, considering a 20- or 30-year timeline, and incorporates the evolving benefits of grid decarbonization, ensuring a comprehensive view of long-term environmental impact.

As the world grapples with the urgent need to reduce greenhouse gas emissions, the built environment has become a critical focus area to deliver progress. Buildings are significant contributors to global carbon emissions, and transitioning to more sustainable, low-carbon operations is essential for meeting climate goals. Planning for that transition now, through a thoughtful and rational approach, is key to achieving success over time.  

Design charrettes are an important tool project teams can use to support their decarbonization planning work. These collaborative design review workshops bring together diverse stakeholders to develop and refine strategies for reducing carbon emissions from buildings over time.  

What is a Design Charrette?

A design charrette is an intensive, multi-disciplinary workshop aimed at finding and refining solutions to complex problems. The term originated in 19th century Paris and refers to the practice of design students working intensely on their projects until the last minute, when a cart or “charrette” would be wheeled around to collect their final designs. The term has evolved to describe collaborative sessions that bring together developers, designers, domain experts, community members, and an array of other stakeholders to reach mutually beneficial outcomes. In the context of building decarbonization, design charrettes facilitate the rapid development of actionable (and at times substantially more innovative) strategies to reduce emissions from buildings, with alignment among multiple interested parties.  

Why Use Design Charrettes to Achieve Resource Efficient Decarbonization?

  1. Collaborative Problem-Solving: Building decarbonization requires input from a wide range of experts, including architects, engineers, asset managers, environmental scientists, and community leaders. A design charrette brings these diverse voices together in a collaborative setting, ensuring that all perspectives are considered. 
  2. Intensive Focus: The concentrated nature of a charrette allows participants to delve deeply into the problem at hand. Over several hours (or days), stakeholders can explore various scenarios, analyze data, and develop detailed plans that might otherwise take months to create using traditional methods. 
  3. Iterative Process: Charrettes are designed to be iterative, with multiple rounds of feedback and refinement as needed. This approach ensures that the final outcomes are well-vetted and robust, with broad support from all stakeholders. 
  4. Creative Solutions: The collaborative and open nature of charrettes fosters creativity and challenges deeply held assumptions about how to approach a problem by the charrette participants.  Participants are encouraged to think outside the box and develop innovative solutions that might not emerge in a more conventional planning process. 
  5.  Achieving Resource Efficient Decarbonization (RED): Charrettes enable stakeholders to develop highly strategic plans to transition a building away from on-site fossil fuel over time in a way that does not diminish high-performance operations, contains operating and capital expenses, and maintains a complex urban systems perspective including considerations relating to infrastructure and natural resources.

The Design Charrette Process

Charrettes are conducted just after a decarbonization concept plan is created and initial decarbonization measures are framed. A successful charrette requires being prepared to discuss the existing conditions of the building in detail, various decarbonization measures and approaches considered, and an understanding of the social and market conditions influencing the building owner’s decision making. The charrette process includes: 

  1. Preparation: Successful charrettes require careful preparation. This includes identifying key stakeholders and inviting them to join, gathering relevant data, and setting clear objectives for the workshop.  
  2. Workshop Session: During the charrette, the project team presents their building existing conditions and decarbonization approaches and engage in brainstorming, design review, and business discussions with a team of technical experts and industry leaders.
  3. Iteration and Feedback: Ideas generated during the sessions can be reviewed and refined through multiple rounds of feedback and additional charrettes as needed. This iterative process helps to improve and perfect the proposed solutions. 
  4. Implementation and Follow-Up: The final step is to translate the charrette outcomes into a formal strategic decarbonization plan and business case that leads to real-world actions. This may involve further planning, securing funding, and ongoing community engagement. 

Design charrettes are a powerful tool for addressing complex decarbonization challenges, especially in the planning and early implementation phase. With collaboration, creativity, and iteration, charrettes enable the development of effective and sustainable strategies to reduce carbon emissions from buildings.

Want to review your decarbonization plan with our team of experts?

Request a design charrette.

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Empire Building Challenge Overview

A baseline assessment is key to understanding current systems and performance, then identifying conditions, requirements or events that will trigger a decarbonization effort. The assessment looks across technical systems, asset strategy and sectoral factors.

Building System Conditions
Asset Conditions
Market Conditions

Effective engineering integrates measures for reducing energy load, recovering wasted heat, and moving towards partial or full electrification. This increases operational efficiencies, optimizes energy peaks, and avoids oversized heating systems, thus alleviating space constraints and minimizing the cost of retrofits to decarbonize the building over time.

Making a business case for strategic decarbonization requires thinking beyond a traditional energy audit approach or simple payback analysis. It assesses business-as-usual costs and risks against the costs and added value of phased decarbonization investments in the long-term.

Retrofit Costs

Decarbonization Costs

Avoided Risks

Business-as-Usual Costs

Avoided Risks

Business-as-Usual Risks

Added Value

Decarbonization Value

Net Present Value

An emissions decarbonization roadmap helps building owners visualize their future emissions reductions by outlining the CO2 reductions from selected energy conservation measures. This roadmap is designed with a phased approach, considering a 20- or 30-year timeline, and incorporates the evolving benefits of grid decarbonization, ensuring a comprehensive view of long-term environmental impact.

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Through the Empire Building Challenge (EBC), NYSERDA is supporting forward-thinking leaders in the real estate and engineering industries, in the quest to find workable and scalable, cost-effective approaches to retrofit tall, complex, and hard-to-decarbonize buildings in New York. Partners and projects funded through the flagship $50 million demonstration program are working to reach a zero-emissions future. The groundbreaking work of these leaders is presented in this Playbook, which showcases a novel, compelling framework that can unlock opportunities for decarbonizing most buildings in a cost-effective manner, over time. We call the framework Resource Efficient Decarbonization.  

To date, NYSERDA has partnered with 27 commercial and multifamily real estate owners who have committed to eliminate carbon emissions from some of New York State’s tallest and most iconic buildings. These partners have pledged to decarbonize over 128 million square feet of space, and more than 3,500 units of affordable housing. The scale of these partner commitments and the early success of EBC demonstration projects sends a clear signal that New York’s real estate industry is ready to accelerate investment in the buildings of the future.  

Beyond these commitments, EBC partners collectively control and manage over 400 million square feet of real estate in New York.  This amounts to over 20% of commercial office space in New York City, and more than 200,000 housing units throughout the State, representing a potential for impact much greater than the sum of its parts.  The lessons learned during the planning, design, and implementation of EBC projects pave the way for the most viable solutions to gain traction and scale throughout the State, reinforcing progress toward the Climate Leadership and Community Protection Act’s goal to reduce greenhouse gas emissions 85% by 2050. 

Discover the Empire Building Challenge

Visit NYSERDA EBC Site(opens in new window) Explore Pitch Deck(opens in new window)
View Launch Webinar(opens in new window)

Read About Real-World Impact

Understand the real-world implications and successes of the Empire Building Challenge through this in-depth article, “How to get New York City’s biggest buildings to zero carbon,” by Canary Media. This piece highlights the practical steps and measures being taken to reduce carbon footprints across New York’s architectural landscape, showcasing the challenge as a beacon for carbon-neutral aspirations worldwide.

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Case Study

Strategic Decarbonization Assessment (SDA) Tool

A baseline assessment is key to understanding current systems and performance, then identifying conditions, requirements or events that will trigger a decarbonization effort. The assessment looks across technical systems, asset strategy and sectoral factors.

Building System Conditions
Asset Conditions
Market Conditions

Effective engineering integrates measures for reducing energy load, recovering wasted heat, and moving towards partial or full electrification. This increases operational efficiencies, optimizes energy peaks, and avoids oversized heating systems, thus alleviating space constraints and minimizing the cost of retrofits to decarbonize the building over time.

Making a business case for strategic decarbonization requires thinking beyond a traditional energy audit approach or simple payback analysis. It assesses business-as-usual costs and risks against the costs and added value of phased decarbonization investments in the long-term.

Retrofit Costs

Decarbonization Costs

Avoided Risks

Business-as-Usual Costs

Avoided Risks

Business-as-Usual Risks

Added Value

Decarbonization Value

Net Present Value

An emissions decarbonization roadmap helps building owners visualize their future emissions reductions by outlining the CO2 reductions from selected energy conservation measures. This roadmap is designed with a phased approach, considering a 20- or 30-year timeline, and incorporates the evolving benefits of grid decarbonization, ensuring a comprehensive view of long-term environmental impact.

Insights from the Empire Building Challenge

The Strategic Decarbonization Assessment calculator is a valuable tool that allows building owners and retrofit teams to align their asset decarbonization strategies with their capital investment strategies. The SDA is designed to integrate assessment of multiple requirements including optimizing net present value, replacing equipment close to end of life, avoiding compliance fees, and coordinating electrification of fossil fuel equipment with future electric grid decarbonization. 

The SDA is a long-term financial planning tool for building owners to manage carbon emissions and energy use. During the Empire Building Challenge program, the tool guided participants in refining their decarbonization scenarios and identifying the most cost-effective decarbonization plans. Several teams were able to show positive net present value for their decarbonization plans compared to business as usual. This process can benefit many buildings and property owners in New York in better quantifying, representing, and identifying optimal decarbonization scenarios.

The SDA tool was built by Arup and Ember Strategies. It was previously developed for the San Francisco Department of the Environment and modified for NYSERDA use in the Empire Building Challenge.

Download SDA Overview

User Advisory

The SDA tool was created as the one-stop shop for the development and modeling of the business case that supports initiating a decarbonization roadmap. The SDA tool below was developed based on ASHRAE Standard 211 normative forms with a variety of users and use cases across the United States in mind. 

The tables and charts on the “Summary (Print Me)” tab outline assumptions, costs, savings, decarbonization trajectory and alignment with NYC’s LL97 requirements. The bar charts and trajectories on this tab should be a graphical representation of the narrative explanation of your plan and business case from the “Narrative & Measures” and “Alternatives” tabs. The “Carbon emissions per year, before offsets” and the “Relative NPV of Alternatives” charts on the “Summary (Print Me)” tab should illustrate the sequencing and timing of equipment replacement, relationships between ECMs and savings/costs.

SDA Inputs Table

The table below describes inputs of the SDA tool and directions associated with each.

On the “Building info and assumptions” tab, users input basic information about the building: floor areas, space types, fuel types and consumption (bill) data. The “Building info and assumptions” tab enables users to communicate building information in a highly customized way at a very granular level. Default values do not need to be changed unless the business case is materially impacted by these estimates (i.e.  maintenance costs are reducing in addition to energy costs). Most of these assumptions are found in the “Real Estate Characteristics” drop down menu. Use the drop-down menu to change the default escalations rates for general costs and specific fuel costs over time. Sensitivity analyses that explore a variety of future rate scenarios are encouraged to show that you have considered the sensitivity/fragility/resilience of your plan in a variety of futures. 

The “Regulatory Assumptions” drop down on this tab includes NYSERDA default values for fuel specific emissions factors stipulated by LL97. This section also automatically calculates the building’s LL97 emissions limits for the 2024-2029 and 2030-2034 time periods using building typology and GSF inputs on the same tab. Please note: As of 2024, the SDA tool has not been updated to reflect any recent changes to LL97 building classes and missions factors.

On the “Equipment Inventory” tab, users will input major energy using equipment. All the fossil fuel equipment and at least 80% of total energy using equipment should be inventoried and reported on this tab. Very similar or identical equipment can be grouped into one row (e.g. multiple AHUs of generally the same size and age). The date of installation is required as it determines the equipment life and is used to define the Business As Usual (BAU) trajectory – existing equipment is projected to continue functioning until it reaches End of Useful Life and is replaced, like for like, at that time. User-input costs for the like for like replacement are also required inputs to complete the BAU trajectory. Please note, the estimated replacement cost and year installed are required inputs for the SDA graphics. Replacement costs for decarbonization measures and BAU equipment replacement need not be overly precise – these cost numbers should be realistic to ensure ROI and NPV calculations are sufficient for comparative purposes.

NPV and savings calculations in the SDA are significantly influenced by major energy using equipment. To streamline SDA development and simplify analysis, project teams should focus on major equipment and group minor equipment together by age, if feasible. If you are not using the landlord/tenant cost/benefit breakout, keep all equipment in column I (Tenants Own/Operate) marked “No”. This tab also enables a simple summer/winter peak/off peak calculator for demand ECMs, but using this feature is optional and is not a replacement for a full 8760 hour model. 

The “Percent energy/carbon by equipment RUL” graphics to the right (cell AY) should populate as expected if everything is input correctly. This visual is often used in business case narratives, but does not appear on the Summary tab.

On the “Narrative & Measures” tab, users narratively define their alternatives and input all the ECMs (costs and energy/carbon impacts) that will be assigned to years on the “Alternatives” tab. The SDA automatically generates two BAU cases: one in which LL97 compliance is not sought and fines are applied, and one in which LL97 compliance is achieved through carbon offsets alone.

Note the measure life column is a critical input as it determines how long the measure’s savings will persist – if the measure ends without replacement, the corresponding uptick in energy/carbon on that year will show in the trajectory graphs. 

Some potential users may be generating detailed energy models and bringing the outputs from those models into the SDA. These users may streamline ECMs to minimize data entry and rely on the narrative explanation of the measures. The simplest ECM list in this case may be “Year 1 ECMs”, “Year 2 ECMs”, etc. with corresponding costs and benefits; but be advised that users must explain their measures very clearly where they have aggregated costs and benefits.

On the “Alternatives” tab, users schedule ECMs and review the bar charts and trajectories between those Alternatives. The charts on this tab should illustrate the business case consistent with the narrative section. As stated before, the landlord vs. tenant breakdown for ECMs is not required (column H of Alternatives) and the subsequent charts can be disregarded if not used. Note the Holding period and Analysis periods can be varied independently, but most EBC users keep both set for 20 years.

The “Total Relative NPV Compared to Baseline – Varying Time Horizons” chart (cell AZ) is very commonly used in internal business cases to evaluate cost-effectiveness of the Alternatives over different time horizons, but it is not included on the Summary tab.

Most of the calculations happen on the “Operating Statements” tab, where an annual operating statement is created for each alternative/baseline for the 20-year analysis period. Users can review these statements as needed; however, it is not recommended to edit this portion of the tool directly. This is typically done when troubleshooting a trajectory chart that does not match user expectations.

Download

The SDA tool is available for download below, including a blank version as well as a version with data from a sample building.

Blank SDA Sample Building SDA

Instructional Videos

Four instructional videos detailing each step of the SDA process are linked below:

Part 1: Introduction & Inputs

Part 2: Equipment Inventory

Part 3: Narrative & Measures

Part 4: Scenarios & Results

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