NEWS

Title: Building Green is More than Efficient

Author: Jacqueline Champagne

Source: Boston Herald

Date Written: 2/1/2008

Anything better always costs more, and there is no free lunch but, from a commercial banker's perspective, there are compelling economic reasons to like, maybe even LOVE, building green, the practice of increasing the efficiency of buildings and their use of energy, water and materials.

The U.S. Green Building Council touts the economic benefits to building green as reduced capital needs and operating costs, increased property values and an increase in worker productivity.

And while conventional wisdom perceives that building green will cost an additional 13 to 18 percent, per the data assembled by The Green Building Finance Consortium, the reality is significantly discounted.

The total cost increase averages less than 1 percent of project costs for a basic LEED (Leadership in Energy and Environmental Design) certification, a nominal project expense for any sizable construction project.

Reduction in Capital and Operating Costs.
With proper execution, building green can actually reduce capital costs. Efficient energy, water and waste systems reduce maintenance and operating costs.

And to make even the flintiest banker smile, building green generally decreases project energy consumption from 10 to 40 percent compared with conventional construction. Cash flow improves, and ergo the project value increases.

Over time, these energy savings can ultimately offer a valuable return on and of a multiple of the additional investment.

Advertising and marketing for the project can also be significantly enhanced by tapping into the media's desire to report on new green building projects.

Faster Approvals.
Generating early and enthusiastic community support for projects can significantly speed up the approval process, and time is money. In fact, offering a streamlined approval process has become a driving strategy behind the green building movement for many communities.

Preserving onsite wetlands or natural areas and offering spaces as public parks, preserves or community spaces can also reduce maintenance costs, generate positive press and enhance the project in the eyes of the community.

Reduced Risk and Increased Productivity.
The EPA has ranked indoor air pollution as one of five top environmental threats to human health. Estimates of the annual cost of lost productivity related to indoor air pollution number in the billions of dollars.

Juries have awarded substantial awards to litigants in indoor air pollution cases involving both private and public facilities. Green building reduces the risk of liability and can reduce insurance premiums for contractors and building occupants.

The Rocky Mountain Institute and other organizations have conducted studies on productivity gains from improved lighting, heating and cooling. According to RMI, energy efficient buildings increase productivity anywhere from 6 to 16 percent by decreasing absentee rates and improving the quality of work.

Because most businesses spend much more on wages than on energy efficiency, incremental increases in worker productivity can produce savings in excess of total energy costs.

Staying Ahead of Regulations.
It is generally more expensive to retroactively comply with new environmental regulations than to design structures which largely anticipate them. It may be prudent for developers to consider building green today as a model to insulate real estate investments from future regulatory and legal costs.

Summing up, the practice of building green can generate substantial economic benefits for property owners, commercial businesses, government, residents, employees and society at large in the form of resource conservation, increased productivity and reduced health care costs - and the additional costs are not going to kill any viable project. What's not to love?

Just In!

Federal Tax Credits for Energy Efficiency in Homes

March 6, 2009

click here for more information

Title:	LEED Points that Don't Break the Budget
Author:	Jeff White
Source:	Land Development Today
Date Written:	3/18/2009

Tips on how to achieve a balance between costs and sustainable building construction. Many building professionals pursue LEED© certification because they believe it's the right thing to do. Since the first version of the U.S. Green Building Council's Leadership in Energy and Environmental Design guidelines were introduced in 2000, consensus has been building that adherence to those guidelines is good for everyone-from building owners and managers to the planet itself. Naturally, however, costs are a significant concern. But several techniques exist to help owners, architects and contractors in various markets, including higher education, capture those all-important points for the fewest possible dollars. Furthermore, early decision-making will provide the greatest energy payoffs in the long term. In the case of public buildings, such as schools, that can mean savings for taxpayers. Location, Location, Location The first consideration is site selection, which allows for not only some of the easiest and cheapest LEED points to pick up, but also other perks such as tax credits. Choosing a building site immediately involves the owner in decisions that can easily reap LEED benefits. Damaged brownfield sites, for instance, can be picked up inexpensively and rehabilitated. Habitat restoration following the building's completion should be undertaken with a careful plan for bulldozer placement and use; this way, site disturbance - and thus rehab costs - can be kept to a minimum. Another simple solution is to plan landscaping around native grasses and vegetation. Not only is this less costly than exotic imported greenery; it's also more environmentally friendly. That's because plants that are adapted to the environment will not require expensive irrigation systems to maintain their appeal. At the very least, they'll require less irrigation than other choices. The money saved on irrigation can be invested in other water-use reduction technology, such as sensors on faucets and waterless urinals. Site selection should also depend on whether the site lies in close proximity to alternative transportation. Alternative transportation near the site can potentially earn the project a LEED point. Capturing the point can be as simple as providing a rack for workers to store their bicycles, along with shower facilities. Site selection is also critical to long-term heating and cooling costs. Building orientation and landscaping can significantly reduce costs over time. Energy and Recycling Energy and atmosphere technologies are not, at first glance, the cheapest green solutions. However, it's important to remember that the higher initial costs can be offset through efficiency; the client will be able to reach the payback point in fewer years, especially when the equipment is reinforced by good site selection and other, less expensive additions such as external sun shades. One increasingly popular choice is the use of white roofs. Their high reflectivity doesn't absorb heat as dark-colored tar or shingle roofs do. This makes the building much easier to cool-and, as many building owners and operators can attest to, is also more modern and attractive in appearance. In the future, construction company owners and operators will face requirements for mandatory recycling and use of recycled materials. Therefore, it is their commitment to ensure that subcontractors recycle as well. For this to be successful, it may require multiple dumpsters and additional plans for construction staging and management, but the reduction in landfill debris is significant. Construction waste management is also a smart option for both cost savings and recycling points. Instead of paying another subcontractor to haul construction waste to the dump, owners can pay a lower hauling fee to a company that will remove and recycle materials such as corrugated cardboard, metals, glass and wood. Indoor Issues Indoor environmental concerns are often overlooked. Low-emitting volatile organic compound (VOC) materials don't cost more than problematic high-emitting ones, so they should always be included in planning and design from the start. This can be as simple as the design team incorporating these specific materials into their specifications. Items such as adhesives, sealants, paints and carpeting can be utilized at little or no premium to the project budget. The sun is a major free resource. Therefore, controllable individual cubicle task lighting can be complemented by plenty of windows that provide daylight for the entire space. Although this means that private offices can no longer "reserve" windows, it gives more employees an advantage, allowing the entire office to benefit from the sunlight. Fresh Ideas It's important to remember that not all certification points are right for all clients. For example, a shelter facility for homeless men was not able to take advantage of the water reduction capabilities of waterless urinals due to their unique requirements and clientele. Crucial to the certification process is to tailor solutions to clients' needs, as well as their desires. LEED conferences, workshops and trade shows are chock full of new products and ideas, as well as places to exchange ideas and heighten awareness. Building owners and operators, along with contractors and design professionals, do well to attend. Another strategy that's a "slam dunk" is to include a LEED Accredited Professional on the design team. This person can direct the way toward less-recognized point solutions - such as adding fly ash to concrete, which will earn a recycled-materials point. An accredited professional and innovative design can further reduce costs. In fact, their knowledge can assist in making LEED certification as easy and inexpensive as possible. The Way of the Future LEED-certified buildings are growing, not going away. The certification system has heightened awareness within the building industry. Instead of throwing away tons of materials in landfills, everyone now tries to find or create new uses for leftovers such as old oak doors. So, if a project's architect or engineer is not familiar with the program or the certification process, owners should take the time to ensure they are aware of it as early in the design process as possible. A certified site will prove to be as good as, or better than, one constructed with conventional processes and materials. Any additional monetary investment will achieve payback within a few years, and marketing departments can make green awareness part of the corporate philosophy. Even if owners are not pursuing certification, most sites can make good use of technology developed with LEED in mind-and still manage to "do the right thing" without breaking the budget. SLDT

5.4.2009: IT'S A START...Proposed House Legislation aims to reduce nationwide energy use by 10% but more can be done.

Pending federal energy efficiency provisions could reduce U.S. energy use by 10.6 quadrillion Btus—about 10% of projected U.S. energy use in 2020, according to a new analysis released today by the American Council for an Energy-Efficient Economy (ACEEE).

These energy efficiency savings are more than the entire current energy use of the state of California and are larger than the annual energy use of 49 of the 50 states. The savings are also about double those of 2007 energy legislation, and will avoid about 661 million metric tons of carbon dioxide emissions in 2020, the equivalent of taking 110 million cars off the road for a year.

The bill includes a variety of energy efficiency and renewable energy provisions as well as a cap-and-trade program to reduce emissions of heat-trapping greenhouse gases. More than half of the savings in the bill comes from the inclusion of a Federal Energy Efficiency Resource Standard (EERS), which would require utilities to reduce electricity demand by 15% and natural gas demand by 10% by 2020.

The bill also includes major savings from a number of other programs, including a new Retrofit for Energy and Environmental Performance (REEP) program, to promote energy efficiency retrofits for residential and commercial buildings, which would save consumers an estimated $5.9 billion dollars in 2020.

Although these potential savings are dramatic, other cost-effective efficiency opportunities are available, says ACEEE. The organization's studies of energy efficiency's potential indicate that current technologies can cost-effectively save 25%–30% of total energy use, and that new technologies could increase the available cost-effective savings. For more details, visit ACEEE.

Source: Green Builder Vantage Newsletter. Volume 2. NO.5.

"I have been doing business with Paul at Southend now for over 3 years. He is the first ...

View All >>

Title:	Building Green is More than Efficient
Author:	Jacqueline Champagne
Source:	Boston Herald
Date Written:	2/1/2008

Anything better always costs more, and there is no free lunch but, from a commercial banker's perspective, there are compelling economic reasons to like, maybe even LOVE, building green, the practice of increasing the efficiency of buildings and their use of energy, water and materials. The U.S. Green Building Council touts the economic benefits to building green as reduced capital needs and operating costs, increased property values and an increase in worker productivity. And while conventional wisdom perceives that building green will cost an additional 13 to 18 percent, per the data assembled by The Green Building Finance Consortium, the reality is significantly discounted. The total cost increase averages less than 1 percent of project costs for a basic LEED (Leadership in Energy and Environmental Design) certification, a nominal project expense for any sizable construction project. Reduction in Capital and Operating Costs. With proper execution, building green can actually reduce capital costs. Efficient energy, water and waste systems reduce maintenance and operating costs. And to make even the flintiest banker smile, building green generally decreases project energy consumption from 10 to 40 percent compared with conventional construction. Cash flow improves, and ergo the project value increases. Over time, these energy savings can ultimately offer a valuable return on and of a multiple of the additional investment. Advertising and marketing for the project can also be significantly enhanced by tapping into the media's desire to report on new green building projects. Faster Approvals. Generating early and enthusiastic community support for projects can significantly speed up the approval process, and time is money. In fact, offering a streamlined approval process has become a driving strategy behind the green building movement for many communities. Preserving onsite wetlands or natural areas and offering spaces as public parks, preserves or community spaces can also reduce maintenance costs, generate positive press and enhance the project in the eyes of the community. Reduced Risk and Increased Productivity. The EPA has ranked indoor air pollution as one of five top environmental threats to human health. Estimates of the annual cost of lost productivity related to indoor air pollution number in the billions of dollars. Juries have awarded substantial awards to litigants in indoor air pollution cases involving both private and public facilities. Green building reduces the risk of liability and can reduce insurance premiums for contractors and building occupants. The Rocky Mountain Institute and other organizations have conducted studies on productivity gains from improved lighting, heating and cooling. According to RMI, energy efficient buildings increase productivity anywhere from 6 to 16 percent by decreasing absentee rates and improving the quality of work. Because most businesses spend much more on wages than on energy efficiency, incremental increases in worker productivity can produce savings in excess of total energy costs. Staying Ahead of Regulations. It is generally more expensive to retroactively comply with new environmental regulations than to design structures which largely anticipate them. It may be prudent for developers to consider building green today as a model to insulate real estate investments from future regulatory and legal costs. Summing up, the practice of building green can generate substantial economic benefits for property owners, commercial businesses, government, residents, employees and society at large in the form of resource conservation, increased productivity and reduced health care costs - and the additional costs are not going to kill any viable project. What's not to love?