Conservation & Efficiency in Commercial Buildings

1. Conservation & Efficiency in Commercial Buildings Is LEED the answer?

2. Commercial Buildings • Energy Used in the Commercial Sector • 18.02% of consumption (2011) • New Construction • Approximately $ 165 billion • 75% of building stock will be replaced in the next 20 years

3. Leadership in Energy & Environmental Design (LEED) • United States Green Building Committee (USGBC) • Nonprofit • “Ecolabel” • Point based system • 5 Categories • Sustainable Sites • Water Efficiency • Energy and Atmosphere • Material and Resources • Indoor Environmental Quality

4. LEED basics • Registration • Submittals • Design phase • Construction phase • Review (after construction) • 13,500 certified LEED buildings as of June 2013 • Report operations data • Prerequisites • Required before credits • Credits • Compliance Points • Certification (100 pt. scale) • Certified: 40-49 points • Silver: 50-59 points • Gold: 60-79 points • Platinum: 80+ points

5. Class Simulation • 2 Members of LEED • 1 Financier • 3 Teams • Requirements for Teams • LEED Gold • Budget Costs

6. Economics • Criticism • Initial Cost • 2% more (NRDC) • Fees • Registration fee • Per square foot fee • $35,000 on average • Praise • Life Cycle Cost • Lowered Overhead • More employees and Expand operations • Investment in Emerging Technology

7. Environmental Effect • Praise • 14% generated renewable energy • 12% took major steps to reduce water use e.g. treat sewage on site • Increased use of low-flush toilets, low-emitting paints, and materials from sustainably harvested wood • Criticism • Easiest and cheapest points used • No proven environmental benefit • Certified prior to occupancy

8. Port of Portland Headquarters • Ratings • Forbes rates top 10 high tech buildings • LEED Platinum • http://www.portofportland.com/prj_POP_HQP2_Home.aspx

9. Regulatory Structure • Control and Command • Detailed, legal requirements on sources of pollution • Environmental standards, permit allowances, penalties • Incentives Based • Compliance is optional • Tax breaks, grants, expedited permitting, etc. • Free Market • Purely voluntary compliance • No government regulation • Hybrid • Independent organizations develop standards

10. Regulatory Reality • Mandatory Regulation • “442 localities . . . 35 state governments . . . [and] 14 federal agencies or departments” have implemented LEED - USGBC • More than 200 jurisdictions require for new public buildings • Some jurisdictionsrequire for private commercial buildings • Incentives • 200 jurisdictions (in conjunction with or in place of LEED) • Tax deduction up to $1.80 per square foot • Tax credit 26 U.S.C. § 48 • 30% of costs for investing in solar energy • 10% of costs for certain geothermal equipment and heat pumps • 170 cities give tax breaks, grants, expedited permits, or waivers

11. The Road Ahead The Hybrid Approach • Positives • Flexibility in standards and process • Innovation in Design • Regional Priorities • Online Submittals • Growing alternatives: Energy Star, Green Globes, GGHC • Government as consumer • Negatives • Government regulation mandating use of LEED • Predicted energy use not equaling actual energy use • Recommended Changes for LEED • More actual energy use data • More aggressive benchmarks