Searching for Gold in Green Buildings

Dec 1, 2007 12:00 PM, By Joe Knisley, Senior Editorial Consultant

Housing represents a significant new market sector for USGBC, one that is important despite the current construction slowdown. Although 45% of home buyers are attracted to green construction, McGraw-Hill SmartMarket reports that only 2% of American houses are built green. Already, there are signs that the new program will increase that percentage. More than 300 houses have earned LEED certification since USBGC began a pilot program in 2005, and 8,000 more homes will be joining this number. However, USGBC is facing some competition in the housing market. The home building industry itself wants to develop a voluntary green standard before the federal government gets involved in this market. Home builders recently lobbied Congress against legislation that would have the federal government write some energy-efficient building codes for states.

As a counter to the USGBC program, the National Association of Home Builders (NAHB) is developing its own standard, which will have regional characteristics and supposedly attract more first-time buyers. Certified by the American National Standards Institute (ANSI), this program, which should be available in February 2008, will involve training certifiers through local builders associations, and is slated to be as rigorous as the LEED process.

Although a green home costs more up-front, a number of state and federal tax credits are available for energy-efficient upgrades, and utility bills should be lower down the road. For example, energy-efficient HVAC equipment earns a $300 federal tax credit. Some banks even offer a discount on mortgage closing costs for new homes that are energy-efficient. However, some builders acknowledge that various green labels can confuse homebuyers, who may balk at the added cost.

Many home builders see an opportunity for the electrical contractor who has the skill to tackle green building projects. A contracting firm familiar with energy-conserving products, such as energy-efficient lighting packages (including LED light sources), monitoring/control systems, solar electric power systems, and energy-efficient appliances, can promote itself to all “green” home builders. The insulation contact airtight (ICAT) sealed canister incandescent downlight is an example of an energy-saving fixture for homes. The introduction of alternate power sources also brings electrical contractors into a new market category for installation work. For example, photovoltaic power systems could be connected directly to receptacles installed in the garage for electric-powered autos. As sustainable buildings grow in importance, new opportunities for electrical contractors will emerge.

Critics of LEED

According to Rob Watson, one of the co-founders of USGBC, the point system was specifically established to entice builders and drive the market in a green direction. The system is set up so one definable action gains one point in the rating system. However, some critics maintain that this simplistic rating system falls short in terms of energy-saving possibilities, and suffers from a number of other shortcomings.

For example, until recently, you could certify a building to LEED without using any energy-savings method, and the categories aren't weighed according to importance. For example, installing a $400 bike rack gets the same point as spending an extra $1 million for a heat recovery system that will save about $500,000 in energy costs per year.

Another drawback, some say, is the fact that a design team can become obsessively focused on getting credits regardless of the environmental value or are being driven to receive regulatory approval, free press coverage, and adulations from the community — all things that could be classified as green mongering.

Additionally, the rating system doesn't make adjustments for local conditions, such as water saving, since a building in Seattle is treated the same as one in Phoenix. Some industry experts have voiced a desire to see a simplified rating system for small buildings. Another complaint is the complexity and high cost of the review process. There is, however, hope that a refinement of application/certification will be ongoing. Some comment that Green Globes, organized by the Green Building Initiative, a Portland, Ore. non-profit initiative, may erode the LEED dominance.

Sidebar: Shopping for Green

Three “green” rating systems exist for homes, including:

LEED: From the U.S. Green Building Council. Points are available for items such as solar panels and energy-efficient appliances.
National Green Building Standard: The National Association of Home Builders is developing standards that reflect regional characteristics.
Energy Star: The Department of Energy program. Homes must be at least 15% more efficient than homes built to the 2004 residential code.

Sidebar: Green and Proud of It

The Alberici Redevelopment Corp. headquarters in Overland, Mo., is a success story on turning an existing manufacturing plant into a 110,000-square-foot Class A office building for one of St. Louis' oldest and largest construction companies. The building achieved a LEED Platinum rating with 60 points (the highest ever) on a budget of $147 per-square-foot, not including land acquisition and parking.

With 70-foot and 90-foot clear-span bays, the 505-foot-long warehouse offered an opportunity to create an interesting design, with the interiors organized around three large atria that admit abundant daylight. LEED construction guidelines were incorporated and tied to contracts with subcontractors for this design-build project. (The electrical contractor was St. Louis-based Guarantee Electrical Co.). At the outset, the construction crews were skeptical of the project, but many on the team volunteered ideas. Upon completion of the structure, they were looking for the next green project.

The building was designed to use 60% less energy than ASHRAE 90.1-1999 requirements, and an on-site wind turbine and solar water heating system combine to meet 20% of the energy demand. A tight and well-insulated envelope, extensive daylighting, occupancy and daylight sensors on the energy-efficient electrical lighting, natural ventilation, heat-recovery mechanical ventilation, and a building automation system all contribute to the low energy use. Results so far? After the company's first year in its new headquarters, the human resources department reported a 50% reduction in sick days.