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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.

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Aura - Tab

title	Decentralized Systems and TenantEquipment

UI Steps

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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 for energy).

Aura - Tab

title	Infrastructure

Aura - Panel

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body	<p><br /></p>

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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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Biomethane
Electric Boilers
High-temperature thermal storage

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

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Con Edison Steam: assume district steam system will decarbonize:

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	High temperature renewable resources are limited and face hurdles:
1	Deep Bore Geothermal
2	Renewable Hydrogen
3	Carbon Capture and Sequestration
4	Biomethane
5	Electric Boilers
6	High-temperature thermal storage
7	Hight-temperature industrial heat pumps
8	Waste Heat Capture and Reuse
9	Fission

UI Step

Barriers to Electrification:

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Utility Capacity Limitations:

1

Building Electric Capacity Upgrades

Electric Riser Capacity
Switchgear Expansion
New Service/Vault Expansion/Point-of-Entry Space Constraints
Capacity competition with other electrification needs:
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Space Heat and Cooling
DHW
Cooking
Pumps and Motors

2

Local Network Electric Capacity Upgrades

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

3

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

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

4

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.

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

Building Automation/BMS/Demand Response:
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Cost
Integration Limitations; blackbox software
Microgrid Development
Cost
Lack of Expertise
On-site Generation:
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Space Constraints
Gas Use; zero carbon fuels availability is non-existent
Structural Loads
Pipe Infrastructure

5

Thermal Storage

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

6

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

Building pipe riser limitations; need additional riser capacity:

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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

Drilling Difficulty:

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

Shared Loop/Thermal Utility Limitations:

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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.

Deep Bore Geothermal Limitations:

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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

7

Other Energy Efficiency/Conservation Measures with proven/attractiveeconomics (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
Retrocommissioning Tasks and Maintenance

8

Behavioral Modification

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

Aura - Tab

title	Facade and Windows

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

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Building Code

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Glazing Reduction at odds with aesthetic/marketability concerns

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Difficult installing with occupied spaces

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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 assemblie:
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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

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Energy Recovery Ventilation (ERV)

Space Constraints
System Tie-in point accessibility/feasibility

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Rooftop Supply Air (Reznor) Unit Alternatives

Heat Pump Alternatives to eliminate resistance heat
Combine with ERV

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HVAC Load Reduction (HLR) Technology

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

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Central vs. Decentralized Ventilation Systems

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Direct Outside Air System (DOAS)

Modular Perimeter Ducted Air Heat Pumps:
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Competition for Leasable Space
Space Constraints

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Ventilation Points-of-Entry

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

Aura - Tab

title	Heat Pump Limitations

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Variable Refrigerant Flow (VRF)

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

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Regulatory Risk from new refrigerant policies

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PTAC and VTAC

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Ducted Supply/Exhaust Air Source Heat Pumps

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Domestic Hot Water

Central DHW Systems:
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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

Aura - Tab

title	Crossover Device or “Magic Box”Technology

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

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Domestic production and supply chain is limited

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Small players operating in this space

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Technology is not tested over long operational periods

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

Aura - Tab

title	Zero Carbon Fuels Limitations

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Green Hydrogen

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Renewable Natural Gas

Aura - Tab

title	Low-carbon Fuels

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Biofuel

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Biomethane

Aura - Tab

title	NYS-focused Carbon Offset MarketLimitations

Aura - Tab

title	Renewable Energy Procurement Limitations

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REC Purchasing

NYSERDA monopolizes REC purchasing from renewable energy projects

Aura - Tab

title	Pending Carbon Trading ProgramsLimitations

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Deployment timeline is highly uncertain

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

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Key

High temperature renewable resources are limited and face hurdles: