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Large commercial and residential buildings must overcome various hurdles before implementing deep retrofits or capital projects that help achieve building decarbonization. In this section, we address technical barriers and questions often faced by building owners and retrofit project developers.

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title	Decentralized Systems and TenantEquipmentTenant Equipment

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title	Decentralized Systems and Tenant Equipment

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Access to Occupied Spaces.

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Lease Concerns.

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Regulatory Limitations - Rent Stabilized Apartments

The building owner is required to provide free heat and hot water.
No mechanism to recover investment in new systems is necessary to achieve decarbonization.
Buildings are capital constrained

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Split Incentives (tenants pays pay for energy).

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title	Infrastructure

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title	Infrastructure

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Aura - Panel

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High temperature renewable resources are limited and face hurdles:

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Deep Bore Geothermal
Renewable Hydrogen
Carbon Capture and Sequestration

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High temperature renewable resources are limited and face hurdles:

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Deep Bore Geothermal
Renewable Hydrogen
Carbon Capture and Sequestration

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	33%

Biomethane
Electric Boilers
High-temperature thermal storage

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Hight-temperature industrial heat pumps
Waste Heat Capture and Reuse
Fission

Utility Capacity Limitations:

Building Electric Capacity Upgrades

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title	learn more

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Capacity competition with other electrification needs:
- Space Heat and Cooling
- DHW
- Cooking
- Pumps and Motors

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Electric Riser Capacity
Switchgear Expansion
New Service/Vault Expansion/Point-of-Entry Space Constraints

Local Network Electric Capacity Upgrades

Expand

title	learn more

Excess Distribution Facility Charges (EDF)
Contributions in Aid of Construction (CIAC)

Gas Utility Earnings Adjustment Mechanisms (EAM) focused on SystemPeak Demand Reductions

Expand

title	learn more

Partial Electrification concepts achieve deep decarbonization but do notnecessarily achieve peak gas demand reductions (debateable)

Total Connected Loads and Peak Demand drive need for capacityupgrades; demand reduction strategies do not obviate capacity limitationsunless the utility accepts the solution as a permanent demand/loadreduction strategy.

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title	learn more

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Battery Storage:
- Fire Danger
- Space Constraints
- Electri Distribution Limitations
- Structural Loads

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Building Automation/BMS/Demand Response:
- Cost
- Integration Limitations; blackbox software
- Microgrid Development
  1. Cost
  2. Lack of Expertise

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On-site Generation:
- Space Constraints
- Gas Use; zero carbon fuels availability is non-existent
- Structural Loads
- Pipe Infrastructure

Thermal Storage

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Space Constrains
Structural Loads
Technology Limitations:
- Vacuum insulated storage tanks
- Phase change material (DHW, space heating)

Geothermal (ambient temperature), Deep Bore Geothermal (hightemperature) or Shared Loop District Energy Systems provide cooling andheating with lower peak demand than standard electric equipment

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title	learn more

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Building pipe riser limitations; need additional riser capacity:
- Building water loops are typically “top down” - cooling capacity istypically located at rooftop mechanical penthouses; cooling towersat roof.
  1. Some exceptions to this rule
- Space Constraints

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Drilling Difficulty:
- Outdoor Space Constraints for Geothermal Wells
- Difficult permitting
- Mud and cuttings disposal
  1. Contaminated soil disposal
- Overhead Clearance Constraints for Drilling in Basements/Garages

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Shared Loop/Thermal Utility Limitations:
- Requires entity that may operate in public ROWs and acrossproperty lines
- Utilities are limited by regulations for gas, steam or electric deliveryvs. shared loop media (ambient temperature water).
  1. Only utility entities can provide very long amortization periods
  2. Utilities are best suited to work amid crowded undergroundmunicipal ROWs.

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Deep Bore Geothermal Limitations:
- Requires test drilling and geological assessment
- Seismic Risk
- Drilling equipment is very large - more akin to oil and gasdevelopment equipment
- Subsurface land rights and DEC restrictions

Other Energy Efficiency/Conservation Measures with proven/attractiveeconomics (these measures are limited by lack of capital or knowledge)

Expand

title	learn more

Lighting with Lighting Controls
High-efficiency electrically commutated motors (ECM)
Variable Frequency Drives (VFD) on pumps and motors
Retrocommissioning Tasks and Maintenance

Behavioral Modification

Expand

title	learn more

Staggered Work Scheduling
Telework
Submetering and Billing: potentially creates split incentive betweenlandlord and tenant:
- Water
- Electric
  1. Onerous regulatory compliance
- Heat and Cooling
  1. Rent stabilized builidings prohibit biling for heat

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Utility Capacity Limitations:

Expand

title	Building Electric Capacity Upgrades

Column

width	50%

Electric riser capacity
Switchgear expansion
New service/vault expansion/point-of-entry space constraints

Column

width	50%

Capacity competition with other electrification needs:
- Space heat and cooling
- DHW
- Cooking
- Pumps and motors

Expand

title	Local Network Electric Capacity Upgrades

Excess Distribution Facility Charges (EDF)
Contributions in Aid of Construction (CIAC)

Expand

title	Gas Utility Earnings Adjustment Mechanisms (EAM) focused on System Peak Demand Reductions

Partial Electrification concepts achieve deep decarbonization but do not necessarily achieve peak gas demand reductions (debatable)

Expand

title	Total Connected Loads and Peak Demand drive need for capacity upgrades

Demand reduction strategies do not obviate capacity limitations unless the utility accepts the solution as a permanent demand/load reduction strategy.

Section

Column

width	33%

Battery Storage:
- Fire danger
- Space constraints
- Electricity distribution limitations
- Structural loads

Column

width	33%

Building Automation/BMS/Demand Response:
- Cost
- Integration limitations; Blackbox software
- Microgrid development
  1. Cost
  2. Lack of expertise

Column

width	33%

On-site Generation:
- Space constraints
- Gas use; Zero carbon fuels availability is non-existent
- Structural loads
- Pipe infrastructure

Expand

title	Thermal Storage

Section

Column

width	50%

Space constrains
Structural loads
Technology limitations:
- Vacuum insulated storage tanks
- Phase change material (DHW, space heating)

Expand

title	Geothermal (ambient temperature), Deep Bore Geothermal (high temperature) or Shared Loop District Energy Systems provide cooling and heating with lower peak demand than standard electric equipment

Section

Column

width	25%

Building pipe riser limitations; need additional riser capacity:
- Building water loops are typically “top down” - cooling capacity is typically located at rooftop mechanical penthouses; cooling towers at roof.
  1. Some exceptions to this rule
- Space Constraints

Column

width	25%

Drilling Difficulty:
- Outdoor space constraints for geothermal wells
- Difficult permitting
- Mud and cuttings disposal
  1. Contaminated soil disposal
- Overhead clearance constraints for drilling in basements/garages

Column

width	25%

Shared Loop/Thermal Utility Limitations:
- Requires entity that may operate in public ROWs and across property lines
- Utilities are limited by regulations for gas, steam or electric delivery versus shared loop media (ambient temperature water).
  1. Only utility entities can provide very long amortization periods
  2. Utilities are best suited to work amid crowded underground municipal ROWs.

Column

width	25%

Deep Bore Geothermal Limitations:
- Requires test drilling and geological assessment
- Seismic risk
- Drilling equipment is very large - more akin to oil and gas development equipment
- Subsurface land rights and DEC restrictions

Expand

title	Other Energy Efficiency/Conservation Measures with proven/attractive economics (these measures are limited by lack of capital or knowledge)

Lighting with lighting controls
High-efficiency electrically commutated motors (ECM)
Variable Frequency Drives (VFD) on pumps and motors
Retro-commissioning tasks and maintenance

Expand

title	Behavioral Modification

Staggered work scheduling
Telework
Submetering and billing: potentially creates split incentive between landlord and tenant:
- Water
- Electric
  1. Onerous regulatory compliance
- Heat and Cooling
  1. Rent stabilized buildings prohibit billing for heat

Aura - Tab

title	Facade and Windows

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title	Facade and Windows

UI Steps

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UI Step
Work must be completed at the end of facade/window useful life; very long useful life

UI Step
Building code

UI Step
Glazing reduction at odds with aesthetic/marketability concerns

UI Step
Difficult installing with occupied spaces

UI Step

Reduce Local Law 11 recurring cost via overcladding

Aesthetic concerns
At odds with historic preservation
Capital intensive
Lot line limitations

UI Step

Technology Limitations

Need higher R-value/inch for thinner wall assembly:
- Vacuum insulated panels
- Aerogel panels/batts
- Zero-GWP blowing agents for closed cell spray foam (nitrogen blowing agent needs to be more widely adopted)

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title	Ventilation

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title	Ventilation

UI Steps

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UI Step

Energy Recovery Ventilation (ERV)

Space constraints
System tie-in point accessibility/feasibility

UI Step

Rooftop Supply Air (Reznor) Unit Alternatives

Heat pump alternatives to eliminate resistance heat
Combine with ERV

UI Step

HVAC Load Reduction (HLR) Technology

Vent or capture exhaust gases
Space constraints
System tie-in point accessibility/feasibility

UI Step
Central vs. Decentralized Ventilation Systems

UI Step

Direct Outside Air System (DOAS)

Modular perimeter ducted air heat pumps:
- Competition for leasable space
- Space constraints

UI Step

Ventilation Points-of-Entry

Aesthetic concerns
Lot line facades/building setbacks
Competition with leasable space
Space constraints

Facade and Windows

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title	Heat Pump Limitations

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title	Heat Pump Limitations

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title

Technology Limitations

Need higher R-value/inch for thinner wall assemblie:

UI Steps

size	small

UI Step
Work must be completed at the end of facade/window useful life; very long usefullife

UI Step
Building Code

UI Step
Glazing Reduction at odds with aesthetic/marketability concerns

UI Step
Difficult installing with occupied spaces

UI Step

Reduce Local Law 11 recurring cost via overcladding

Aesthetic Concerns
At odds with historic preservation
Capital intensive
Lot Line Limitations

UI Step

Expand

title	learn more

Vacuum insulated panels
Aerogel panels/batts
Zero-GWP blowing agents for closed cell spray foam (nitrogen blowingagent needs to be more widely adopted)

Aura - Tab

title	Ventilation

UI Steps

size	small

UI Step

Energy Recovery Ventilation (ERV)

Space Constraints
System Tie-in point accessibility/feasibility

UI Step

Rooftop Supply Air (Reznor) Unit Alternatives

Heat Pump Alternatives to eliminate resistance heat
Combine with ERV

UI Step

HVAC Load Reduction (HLR) Technology

Vent or Capture Exhaust Gases
Space Constraints
System Tie-in point accessibility/feasibility

Variable Refrigerant Flow (VRF)

Fire and life safety concerns about volume of refrigerant gas located within occupied spaces.

UI Step
Regulatory risk from new refrigerant policies

UI Step
PTAC and VTAC

UI Step
Ducted Supply/Exhaust Air Source Heat Pumps

UI Step

Domestic Hot Water

Central DHW Systems:
- Limited domestic production
- Performance not confirmed by independent third parties
- More demonstration projects needed
Decentralized DHW Systems

UI Step

More open-source interconnection between devices/interoperability is needed to achieve energy distribution flexibility and capacity expansion:

Air source that has a manifold connection to interconnect with water source or refrigerant gas distribution
Interconnectivity/simplified heat exchange between refrigerants/water/air, etc.
Other options and add-ons

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title	Crossover Device or “Magic Box” Technology

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title	Crossover Device or “Magic Box” Technology

Info
Multi-purpose technology for heating, cooling, heat exchange and ventilation, filtration, and/or domestic hot water

UI Step
Central vs. Decentralized Ventilation Systems

UI Step

Direct Outside Air System (DOAS)

Modular Perimeter Ducted Air Heat Pumps:

Expand

title	learn more

Competition for Leasable Space
Space Constraints

UI Step

Ventilation Points-of-Entry

Aesthetic Concerns
Lot Line Facades/Building Setbacks
Competition with Leasable Space
Space Constraints

Aura - TabtitleHeat Pump Limitations

UI Steps

size	small

UI Step

Variable Refrigerant Flow (VRF)

Fire and Life Safety concerns over volume of refrigerant gas located withinoccupied spaces.

Domestic production and supply chain is limited

UI Step
Regulatory Risk from new refrigerant policies

UI Step
PTAC and VTAC

UI Step
Ducted Supply/Exhaust Air Source Heat PumpsSmall players operating in this space

Domestic Hot Water

Central DHW Systems:

UI Step

Expand

title	learn more

Limited domestic production
Performance not confirmed by independent third-parties
More demonstration projects needed

Decentralized DHW Systems

UI Step

More open source interconnection between devices/interoperability is needed toachieve energy distribution flexibility and capacity expansion:

air source that has a manifold connection to interconnect with water source orrefrigerant gas distribution
interconnectivity/simplified heat exchange between refrigerants/water/air, etc.
Other optionality and add-ons

Technology is not tested over long operational periods

Daikin, Nilan, Zehnder, Drexel und Weiss, Minotair, Build Equinox, Clivet

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title	Zero Carbon Fuels Limitations

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title	Zero Carbon Fuel Limitations

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title	Crossover Device or “Magic Box”Technology

multi-purpose technology for heating, cooling, heat exchange and ventilation, filtration,and/or domestic hot water

Info

UI Steps

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UI Step
Green Hydrogen

UI Step
Domestic production and supply chain is limited

UI Step
Small players operating in this space

UI Step

Technology is not tested over long operational periods

Daikin, Nilan, Zehnder, Drexel und Weiss, Minotair, Build Equinox, Clivet

Renewable Natural Gas

Zero Carbon Fuels Limitations

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title	Low-Carbon Fuels

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title	Low-Carbon Fuels

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title

UI Steps

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UI Step
Green Hydrogen

UI Step
Renewable Natural Gas

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Biofuel

UI Step
Biomethane

Low-carbon Fuels

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title	Renewable Energy Procurement Limitations

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title	Renewable Energy Procurement Limitations

title

UI Steps

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UI Step
Biofuel
REC Purchasing NYSERDA monopolizes REC purchasing from renewable energy projects
UI Step
Biomethane

Aura - Tab

title	NYS-focused Carbon Offset MarketLimitations

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title	Renewable Energy Procurement Limitations

UI Steps

size	small

UI Step

REC Purchasing

NYSERDA monopolizes REC purchasing from renewable energy projects

Pending Carbon Trading Programs Limitations

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title	Pending Carbon Trading

ProgramsLimitations

Programs Limitations

UI Steps

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Deployment timeline is highly uncertain

UI Step
Price per ton of carbon is highly uncertain and will likely be volatile/low based onprevious on previous emissions trading scheme outcomes

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High temperature renewable resources are limited and face hurdles:

High temperature renewable resources are limited and face hurdles:

Utility Capacity Limitations:

Local Network Electric Capacity Upgrades

Gas Utility Earnings Adjustment Mechanisms (EAM) focused on SystemPeak Demand Reductions

Total Connected Loads and Peak Demand drive need for capacityupgrades; demand reduction strategies do not obviate capacity limitationsunless the utility accepts the solution as a permanent demand/loadreduction strategy.

Thermal Storage

Geothermal (ambient temperature), Deep Bore Geothermal (hightemperature) or Shared Loop District Energy Systems provide cooling andheating with lower peak demand than standard electric equipment

Other Energy Efficiency/Conservation Measures with proven/attractiveeconomics (these measures are limited by lack of capital or knowledge)

Behavioral Modification

Utility Capacity Limitations: