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The Future of Sustainable Building Restoration with Deep Energy Retrofits

March 15, 2024

AS THE GLOBAL focus on sustainability and
climate change intensifies, the United States
is seeing a new trend in building restoration—
deep energy retrofits. The largest contributor
to greenhouse gas (GHG) emissions in the US,
buildings account for approximately 40% of
energy consumption and 75% of electricity
use nationwide.1 Therefore, existing structures
have been targeted for renovations to improve
their energy efficiency and reduce their GHG
emissions (i.e., carbon footprint).
But rehabbing buildings with energy
conservation in mind can be a massive undertaking,
requiring a holistic exterior and interior approach
to decrease buildings’ GHG emissions and energy
consumption while minimizing disruption to current
occupants. A deep energy retrofit is achieved when
renovation activities reduce a building’s site energy
usage by at least 40%.2
While legislative measures spur the adoption
of energy-efficient initiatives, local programs are
incentivizing and supporting building owners,
architects, and contractors throughout the
implementation of deep energy retrofits.
Likewise, the construction and design
industries are seeking to ease this process
for stakeholders by introducing sustainable
technologies to accomplish these retrofits
more efficiently. One such strategy is the use
of prefabricated exterior wall panels to reclad
buildings with improved insulation and thermal
performance, airtightness, and watertightness.
This article reviews the drivers (Fig. 1) behind
energy performance regulations, how the building
sector plays into reaching key milestones,
and tactics to streamline the adoption of deep
energy retrofits.
SETTING THE STAGE FOR
WORLDWIDE ENERGY
CONSERVATION AND
REDUCTION
Designated as a global emergency by the United
Nations (UN), the pollution from GHG emissions,
Feature
The Future of Sustainable
Building Restoration with
Deep Energy Retrofits
By David Hutchinson and
Chuck Bundrick, CSI, LEED GA
Interface articles may cite trade, brand,
or product names to specify or describe
adequately materials, experimental
procedures, and/or equipment. In no
case does such identification imply
recommendation or endorsement by
the International Institute of Building
Enclosure Consultants (IIBEC).
which include carbon dioxide, methane, and
other greenhouse gases, has led to substantial,
often irreversible, environmental damage.3 In
2015, the historic Paris Agreement was ratified
by world leaders at the UN Climate Change
Conference to commit to collective climate
action to reduce emissions and limit the Earth’s
temperature increase to “1.5°C [2.7°F] above
pre-industrial levels.”4
The agreement went into effect in 2016,
and as of early 2024, 195 parties have signed
onto this legally binding international treaty. To
accomplish this, global GHG emissions need to
reach net-zero GHG emissions by 2050. Net-zero
means cutting GHG emissions to as close to zero
as possible and involves replacing coal, gas,
and other fossil-fuel energy sources with more
renewable energy sources such as wind and
solar. Carbon neutrality refers to reducing GHG
emissions and offsetting it or “neutralizing”
it by producing clean energy. Net-zero GHG
emissions is the primary objective necessary for
climate management.
The Paris Agreement triggered an increase
in sustainable policies worldwide to attain these
goals. The first analysis of countries’ progress
toward these markers in 2023, known as the
Global Stocktake, will measure the current
state and chart solutions moving forward, with
subsequent reviews occurring every 5 years.5
In the meantime, in the US, national and
state programs are assisting with the practical
and financial implications of these energy-saving
measures and GHG emission reduction
© 2024 International Institute of Building Enclosure C 24 • IIBEC Interface onsultants (IIBEC) March 2024
plans. In 2022, President Joe Biden signed the
Inflation Reduction Act into law, “marking the
most significant action Congress has taken on
clean energy and climate change in the nation’s
history.”6 This agreement allocates $369 billion
to create and invest in its Energy Security and
Climate Change program that is spearheading an
increase in clean energy, climate mitigation, and
infrastructure resilience across the US.
Of this, over $2 billion (USD) is geared
toward making new and existing buildings more
energy efficient, including grants to state and
local governments to update their building codes
with more stringent energy standards.
Similarly, the National Building Performance
Standards Coalition was established to assist
participating cities in improving the performance
of their buildings and lowering their emissions
through overall efficiency and using clean
sources of energy.7
At the state level, New York, California, and
Massachusetts were early adopters, employing
programs such as RetrofitNY8, REALIZE-CA9
and REALIZE-MA to kickstart financing for
energy-efficient adaptations to the existing
building stock.
HOW BUILDINGS IMPACT
CARBON EMISSIONS
Building renovations, especially in densely
populated areas, are pivotal in reducing
both embodied carbon and operational GHG
emissions. The term “embodied carbon” refers
to the sum of GHG emissions tied to material
extraction, manufacturing, transportation, and
installation throughout the construction process
and lifecycle of a building. Figure 210 illustrates
embodied carbon and operational emissions
used throughout each of these lifecycle phases
of a building.
“Operational GHG emissions” are those
generated throughout the building’s ongoing
use and maintenance, such as from heating
and cooling.
While optimizing elements of new construction
is important, it is a difficult initiative due to the
countless variables associated with erecting
a building. Alternatively, retrofitting occupied
buildings saves between 50% and 75% of lifecycle
carbon emissions compared to constructing the
same structure new.11
In either case, strategies to reduce
embodied carbon in building design and
construction extend to reducing waste,
incorporating recycled or reclaimed products,
and using low-carbon, carbon-neutral, or
carbon-storing materials. Together, the tangible
improvements of deep energy retrofits can
lead to dramatic urban transformation, and,
as RMI, founded as Rocky Mountain Institute,
Figure 1. From global to localized programs, numerous parties are driving deep energy retrofits of existing buildings.
March 2024 IIBEC Interface • 25
describes, help cities “move from climate
commitment to climate action.”12
Actuating these sustainable renovation
plans requires buy-in from stakeholders across
the construction and design fields, including
architects, contractors, engineers, building
material manufacturers, and tradespeople.
Therefore, industry associations, independent
researchers, and nonprofit organizations are
backing these decarbonization and retrofit
strategies with data, training, and financing
to ease the learning curve and project
deployment. Some, like the International
Institute of Building Enclosure Consultants
(IIBEC) and the National Institute of Building
Sciences (NIBS), focus on education
and advocacy related to the design and
implementation of high-performing buildings,
while others take a regional approach or tackle
more specific areas like HVAC optimization,
energy auditing, or solar power.
NEW YORK’S APPROACH
TO EMISSION REDUCTION
In April 2019, New York City’s Climate
Mobilization Act kickstarted a range of
initiatives aimed at reducing energy
consumption and GHG emissions with targets,
including a 40% reduction in GHG emissions by
2030 and an 80% reduction by 2050.13 Entities
like Syracuse University14 and the New York
City Housing Authority15 are taking these
goals seriously, emphasizing comprehensive
and long-term energy solutions instead of
one-off fixes.
One key measure of the NYC Climate
Mobilization Act is Local Law 95, which
introduced energy-efficiency ratings for
buildings, much like health ratings for
restaurants. Ratings are posted publicly for
transparency, which could discourage potential
tenants like a leasing business or apartment
seeker from selecting those buildings. This
accountability is a motivator for a building owner
that receives a low score to make changes to their
energy efficiency rating or else risk vacancies and
decreased revenue.
NYC Local Law 97, which applies to buildings
over 25,000 ft2 (2,300 m2) in New York City,
imposes penalties for structures exceeding
emissions limits or failing to comply with
reporting requirements beginning in 2024.16
This legislation has serious implications for
building owners, developers, designers, and
engineers, and will likely spark a boom in the
retrofitting industry.
For architects and construction professionals
working across state-lines, New York and
Massachusetts are striving to achieve alignment
between their energy efficiency codes and
building decarbonization efforts to streamline
the process. The Empire Building Challenge17 and
REALIZE-MA18 are leading the way with the goal
to not just meet climate targets but also to pay
attention to buildings that are often overlooked,
such as affordable housing. These programs also
offer technical retrofit solution guidance and help
building owners secure gap funding to invest in
innovative energy efficient solutions and retrofits.
John Mandyck, CEO of the New York
City-based Urban Green Council, notes that
“Most buildings have done the easy stuff already
so if you’re not going to pay for it now, you
better take a look at where the law is going and
where the carbon emissions are going, because
maybe now is the time to electrify to future proof
the building.”19
CALIFORNIA AND ENERGY
EQUITY
California has an ambitious energy
management plan, striving to reach carbon
neutrality by 2045, 5 years ahead of the Paris
Agreement’s target.20 However, California’s
Figure 2. This diagram shows the stages of a structure’s lifecycle, from building material extraction to demolition.
26 • IIBEC Interface March 2024
energy-saving programs tackle the
restoration of existing buildings in addition
to establishing more sustainable models
for new construction projects. Since new
buildings require added energy consumption,
the Zero Code for California, developed in
conjunction with AIA California, dictates that
new, non residential commercial buildings,
high-rise residential buildings, and hotel/
motel buildings must offset the load through
renewable energy production.21 Using their
prescribed strategies to optimize clean
energy usage throughout the build process
can result in nearly zero carbon impact.
Under the California Energy Commission,
the Equitable Building Decarbonization
Program provides low- or no-cost retrofits
for homes as well as incentives to drive
greater use of low-carbon technologies.22
The program also prioritizes construction
that will improve resiliency to extreme heat,
indoor air quality, and energy affordability
to make sustainable, safe homes more
accessible to low- and moderate-income
households.
This consideration for energy equity
is also being taken by the REALIZE-CA
program, which advocates for the use of
deep energy retrofits in the affordable
housing sector to reach California’s
aggressive energy goals. The program
recognizes that “low-income residents
face a disproportionate energy burden,”
so innovative technologies and
multi-disciplinary programs are necessary
to expand these environmentally friendly
strategies to vulnerable populations.23 The
Low-Income Energy Affordability Data (LEAD)
Tool from the US Department of Energy
(DOE) allows stakeholders to visualize the
intersection of housing, income, and energy
data in a geographic region to assess the
energy challenges across the country.24
REALIZE-CA is working to standardize the
retrofit process to easily deploy and scale the
building rehabilitations while minimizing
disruption to the tenants. The program is
engaging with owners, manufacturers,
community leaders, and policymakers to show
that deep energy retrofits are both attainable
and part of the solution for reducing carbon
emissions statewide.
While the road to achieving California’s
lofty climate goals is challenging, collaborative
partnerships combined with new technologies
are being utilized to make strides toward
carbon-free buildings in the state.
THE IMPORTANCE OF THE
BUILDING ENCLOSURE IN DEEP
ENERGY RETROFITS
Reducing GHG emissions at the rate needed
to hit the global milestones requires drastic
changes to the aggregate building stock.
Minor building repairs and upgrading interior
elements, such as lighting, mechanical systems,
and appliances, are not sufficient. While quick
wins are helpful, their energy conservation is
not substantial enough to meet the required
international standards in the given timeframe.
Deep energy retrofits involve a
whole-systems approach, with the
aforementioned smaller, minor building
repairs and upgrading interior elements,
plus more extensive changes to the exterior
shell of a building and adding renewable
energy sources like solar or wind. Inevitably,
retrofits are more efficient and produce more
sizable and long-lasting results, but they
are also more expensive and have longer
return-on-investment periods.
The process of retrofitting for energy
efficiency is complex because it takes a
whole-building lens. These adaptations
look to optimize all the structure’s unique
facets, which vary depending on the building
typology, location, construction materials,
Figure 3. This graphic illustrates the building elements included in a REALIZE retrofit package depending on building needs.
March 2024 IIBEC Interface • 27
Figure 4. A worker applies finishing material to an exterior wall panel in a factory.
Figure 5. Prefabricated wall panels are raised with a crane and attached to the horizontal brackets on the building exterior.
28 • IIBEC Interface March 2024
and occupancy. The goal of most retrofits is to
execute all improvements in a short period of
time to minimize wasted time, space, effort,
and cost.
REALIZE retrofit packages (Fig. 3) can include
some combination of prefabricated wall panels,
high-performance windows, doors, and roofs,
solar power, all-electric appliances, and more
efficient mechanical systems.25
For many retrofits, the importance of the
entire building enclosure as the primary barrier
between the interior and exterior environments
is critical.
The external building performance, namely
thermal efficiency and air- and watertightness,
impacts the ultimate effectiveness of the
structure’s internal heating and cooling
mechanisms. The positive environmental
impacts of an energy-efficient HVAC system are
essentially negated if the building enclosure has
significant thermal bridging and air infiltration
and exfiltration. Air leakage alone is responsible
for 6% of the energy used by commercial
buildings in the US.26
A high-performance building enclosure
is dictated by numerous factors, including
the wall systems’ thermal mass, quality
and continuity of insulation, airtightness,
and watertightness. The National Institute
of Standards and Technology (NIST), in
partnership with ASHRAE, Oak Ridge
National Laboratory (ORNL), and the Air
Barrier Association of America (ABAA),
cited that improving airtightness is one of
the most cost-effective ways to decrease
energy loads.27
To help measure this return on investment,
whole-building air-leakage testing, such as
through ASTM E779-19, Standard Test Method
for Determining Air Leakage Rate by Fan
Pressurization,28 can be conducted before and
after the retrofit to quantify these improvements.
PANELIZED CLADDING
SOLUTIONS TO SPEED ENERGY
SAVINGS
To alleviate the threat of wasted energy due to
the building enclosure, deep energy retrofits
can incorporate exterior wall panelization for
an air- and watertight facade with increased
R-value. Over-clad systems, often composed of
a framing material, drainage, insulation, and a
durable architectural finish, can be prefabricated
and assembled in a factory (Fig. 4) so the
resulting wall panels can be quickly shipped and
installed on the building without removing the
existing cladding.
Once brackets are mechanically attached
to the vertical slab in the field, the wall panels
are ready to be hung in place (Fig. 5). Then,
installers mount and detail the window
assemblies. Expansion joints are sealed with a
flexible thermal barrier that can accommodate
any slight building movement.
Prefabricated wall panels can eliminate
harmful thermal bridging, thus maximizing
operational efficiency, decreasing occupant
disruption, and reducing ongoing utility
costs for the owner. The wall panels also have
infinite artistic possibilities, giving architects
complete design versatility to refresh
the building’s appearance to the owner’s
desired aesthetic.
The off-site construction method of
assembling the various components of a
wall system in a factory as opposed to on the
jobsite also promotes year-round restorations
and minimizes weather-related delays. The
exterior wall panels are built indoors with a
consistent environment for greater quality
control and can be shipped to the jobsite
whenever the project is ready. This speed
enables the buildings to achieve an air- and
watertight envelope almost immediately after
hanging the panels.
Deep energy retrofits can be streamlined
further by consolidating scopes of work with
design, construction, and building material
partners who understand the interconnected
facets of energy-conscious renovations. Using
reliable companies for wall panel design,
fabrication, and installation will enable faster,
more efficient retrofits which can reduce costs for
all parties. Projects can also utilize manufacturers
who offer products suitable throughout
the building enclosure to ensure material
compatibility, effective joint connections, and
long-lasting thermal performance to meet the
energy-code requirements.
RETROFIT SUCCESS IN
CORONA, CALIFORNIA
Such an exterior wall panel solution was
successfully deployed in Corona, California,
in 2023. Two buildings in the affordable
multi-family housing development of
Corona del Rey (Fig. 6) were identified as
candidates for a deep energy retrofit as part
of a research-driven project by the California
Energy Commission and REALIZE-CA.29 These
structures were over 70 years old and required
updates to their heating and cooling systems,
plumbing, insulation, roof, and facade.
Instead of tearing off the existing stucco,
prefabricated wall panels were incorporated
into the design to overclad the exterior. The
prefabricated wall panel install improved the
Figure 6. The retrofit of the Corona del Rey apartments proves a dramatic visual transformation
as well as an impressive reduction of the buildings’ energy usage.
March 2024 IIBEC Interface • 29
structures’ energy efficiency, aesthetics, and
comfort.
The principal architect, Katie Ackerly
of David Baker Architects, describes how
the “subtle tapering of the panels and
use of accent color, and leveraging the
design flexibility to incorporate building
signage” effectively modernized a
once-outdated structure.
FINANCIAL FACTORS AND
OPPORTUNITIES
After understanding the logistics of a deep energy
retrofit, the next question is always about the fiscal
feasibility. Funding streams are available through
a variety of federal and state-sponsored agencies
as well as third-party institutions and insurers.
These can come in the form of grants, rebates,
loans, and tax reductions.
The DOE is continuing to fund technology
advancements and pilot projects to see
these retrofits through to fruition.30 Local
jurisdictions are taking their own approaches to
accelerate these climate mitigation efforts and
accommodate the economic factors involved.
Some municipalities extend tax incentives and
gap funding for owners and developers who
implement these energy-saving measures,
while others threaten fines to those whose
buildings do not attain a certain level of energy
performance.
Property Assessed Clean Energy (PACE)
programs offer financing for energy-efficiency and
renewable-energy improvements on commercial
and residential properties.31 Even if owners do
not have the capital up front, they can participate
and repay their loan across upwards of 20 years. A
noteworthy element of PACE programs is that the
debt is tied to the property itself, not the owner, so
any repayment obligations can be transferred if the
ownership changes. The program for commercial
properties, which also includes multi-family
housing, is known as C-PACE and is accessible in
more than 37 states plus Washington, DC, while
residential PACE is currently only available in
California, Florida, and Missouri.32
The Better Buildings Solution Center is a
helpful resource to find eligible financing options
based on the property location, size, type of
ownership, and other features.33 Their financial
opportunities can help owners and developers
measure their return on investment at the onset
of a project and see the deep energy retrofit
through to completion.
CONCLUSION
The push to achieve net-zero GHG emissions
by 2050 requires a focus on operational GHG
emissions within existing buildings. State and
national organizations are driving local efforts
with tactical and economic backing to support
the distinct needs of the design and construction
professionals, owners, community leaders, and
households.
To meet these benchmarks, deep energy
retrofits, including prefabricated solutions such
as exterior wall panels, are vital to streamline the
process for all stakeholders.
Leading the pack in the adoption of retrofits
are New York, California, and Massachusetts,
who are pioneering energy-efficiency programs
with ambitious goals for reduced GHG emissions.
While monetary and logistical challenges persist,
various programs can help incentivize and aid
the undertaking of these massive upgrades.
As these states continue to lead the way, their
experiences serve as valuable blueprints
for others to follow in the pursuit of greater
sustainability and energy equity in their markets.
Overall, the success of such climatemanagement
programs depends on a
multifaceted approach that combines
technological innovation, financial and logistical
viability, and long-term performance of efficient
building materials.
REFERENCES
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greening-federal-buildings/deep-energyretrofits.
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paris-agreement.
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paris-agreement.
5. “Global Stocktake.” United Nations Climate
Change. Accessed 2023. https://unfccc.int/topics/
global-stocktake.
6 “Inflation Reduction Act Guidebook,” The White
House, December 5, 2023, https://www.whitehouse.
gov/cleanenergy/inflation-reduction-act-guidebook/.
7. “About the National BPS Coalition.” National BPS
Coalition, November 13, 2023. https://nationalbpscoalition.
org/.
8. “RetrofitNY Program.” NYSERDA. Accessed 2024.
https://www.nyserda.ny.gov/All-Programs/
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9. “Realize-CA.” RMI, March 9, 2023. https://rmi.org/
our-work/buildings/realize/realize-ca/.
10. Weir, Madeline, Audrey Rempher, and Rebecca
Esau. “Embodied Carbon 101: Building
Materials.” RMI, March 27, 2023. https://rmi.org/
embodied-carbon-
101/.
11. Rosenbloom, Eva, Chris Magwood, Heather Clark,
and Victor Olgyay. “Transforming Existing Buildings
from Climate Liabilities to Climate Assets.” RMI,
July 2024. https://rmi.org/insight/transformingexisting-
buildings-from-climate-liabilities-toclimate-
assets/.
12. “Urban Transformation.” RMI, March 29, 2023.
https://rmi.org/our-work/urban-transformation/.
13. “Climate Mobilization Act.” New York City Council,
n.d. https://council.nyc.gov/data/green/.
14. Stirling, Diane. “Deep-Energy Retrofits Research
Yields Promising Cost Savings, Human
Well-Being Outcomes.” Syracuse University
News, January 9, 2024. https://news.syr.edu/
blog/2024/01/09/deep-energy-retrofitsresearch-
yields-promising-cost-savingshuman-
well-being-outcomes/.
15. “New York City Housing Authority (NYCHA).” Better
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16. “Local Law 97.” NYC Sustainable Buildings.
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site/sustainablebuildings/ll97/local-law-97.page.
17. “Empire Building Challenge.” NYSERDA. Accessed
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18. “Realize-MA.” RMI, February 15, 2023. https://rmi.
org/our-work/buildings/realize/realize-ma/.
19. “Decarbonizing Buildings in New York.” Urban Green
Council, December 13, 2023.
https://www.urbangreencouncil.org/.
20. “AB 32 Climate Change Scoping Plan .” n.d.
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22. “Equitable Building Decarbonization Program.”
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our-work/buildings/realize/realize-ca/.
24. “Low-Income Energy Affordability Data (LEAD) Tool.”
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affordability-data-lead-tool.
25. “Realize-CA.” RMI, March 9, 2023. https://rmi.org/
our-work/buildings/realize/realize-ca/.
26. Hun, Diana E., and Mahabir Bhandari. 2016.
“ORNL Tech Demo: Achieving Energy and Cost
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Technologies.” Better Buildings. U.S. Department
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30 • IIBEC Interface March 2024
and-cost-savings-
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27. Shrestha, Som, Diana Hun, Lisa Ng, Andre
Desjarlais, Steven Emmerich, and Laverne
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28. “Standard Test Method for Determining Air
Leakage Rate by Fan Pressurization.” 2019.
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e0779-19.html.
29. Egerter, Amy. 2021. “REALIZE-CA: Retrofit
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Please address reader comments to
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ABOUT THE AUTHORS
David Hutchinson
is an expert in retrofit
solution generation for
the constantly aging
existing building stock.
Leading the Tremco
CPG’Deep Energy
Retrofit Development
program, he works
with building owners
and architects to bring
turnkey solutions to the
market and address the challenges facing carbon
reduction. Additionally, Hutchinson is the founder
and director of the Tremco CPG Rising Stars
Program, which focuses on creating opportunities
for diverse workforce development through
training, education, and networking.
Chuck Bundrick,
CSI, LEED GA, is a
veteran of the exterior
insulation and finish
system (EIFS) and
construction industry
with nearly 30 years’
experience in senior
sales and business
management roles.
He assists a team
of professionals
that help building owners, architects, and
their design and engineering consultants
consider prefabricated solutions for their
projects. This team helps address the critical
issues associated with building envelope
renovations, including making decisions
about improving building performance and
transformation of the building exterior. Chuck
also helps owners access the specialized
services often needed in prefabrication and
renovations such as fabricators, third-party
inspectors, forensic engineers, and
energy analysts.
DAVID HUTCHINSON
CHUCK BUNDRICK,
CSI, LEED GA
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