August 5, 2008

AIA Report Examines Effectiveness, Challenges and Best Examples of Green Building Incentive Options
State and local governments are using a variety of incentive-based techniques to encourage green building practices. These efforts have encountered challenges including the cost of new incentive programs, resource shortcomings and implementation difficulties. In order to help communities overcome these obstacles, the American Institute of Architects (AIA) commissioned a report, Local Leaders in Sustainability – Green Incentives, that defines and examines many types of incentive programs, details the inherent barriers to success and highlights best practice examples from around the country.

After evaluating a dozen different green building incentive options, the report identified the most attractive incentives as:

•Tax incentives – temporarily reduced taxes for specific levels of green measures and certification

Local example, city tax exemption, Cincinnati, Ohio
A 100 percent tax exemption for LEED certified buildings, not to exceed $500,000 over 15 years for new buildings and over 10 years for renovations, is offered by the city. If the building receives LEED Platinum certification, there is no maximum exemption.

• Density/floor area ratio bonuses – implement height bonuses, floor area/ratio bonuses, reductions in landscaping requirements and inclusion of green roof space as landscaping/open space in return for achieving levels of green building ratings

Local example, green building incentive program, Arlington, Virginia
This incentive awards commercial projects and private developments that earn LEED certification additional density between .15 and .35 FAR and/or additional height of up to three stories (the higher the certification level, the greater the density awarded). Certification does not guarantee additional density – projects are analyzed on a case-by-case basis. The Master Certificate of Occupancy is awarded when the building is certified.

• Expedited permitting – streamline the permitting process for building, plan and site permits on projects that achieve a certain level of sustainability

Local example, Chicago Green Permit Program
This program reduces the permitting process for developers and owners who build green to less than 30 business days and, in some cases, less than 15 days. The length is determined by the number of green building elements, the LEED certification level and the project complexity.

“No matter what option a community uses, the best recipe for success is a policy that is easy to implement and execute,” said AIA vice president, Government and Community Relations, Paul Mendelsohn. “Our intention is to help speed the process for which green building practices become the norm. As we move towards that possibility through incentives, local building department resources become strained and progress is stalled. We recommend state and/or federal subsidies as the best solution to help ease the burden of stretched local officials and ensure effective green building incentive programs.”

Additional recommendations include:

• Hire trained professionals in multiple departments who are knowledgeable about sustainable design and green rating systems to ensure expedited permitting and zone fee reductions can be executed
• Conduct public education campaigns to better inform the public and building owners on the environmental, economic and public health benefits of green buildings
• Target a wide spectrum of builders, developers, owners and operators with a mix of mutually beneficial incentive options
• Develop grant and loan programs to address needs of smaller businesses
• Seek federal support for green building through grant programs, district tax credits and small business loans

Last year, the AIA convened a Developers Roundtable to gather recommendations from business leaders and their representatives in the development community on the best types of green incentives. This report is part of a follow up to that effort, and is co-sponsored by Ceres, The Real Estate Roundtable, Fireman’s Fund Insurance Company, A Member of Allianz Group and Sustainable Enterprise Management. This will be followed up with AIA legislative advocacy efforts to accelerate the adoption of state and local green building programs.

AIA Launches “GreenStep” Video Series
Twelve Webisodes to Educate on Various Elements of Sustainable Design

The video series is another aspect of the AIA “Walk the Walk” integrated marketing campaign to help clients and the public learn more about sustainable design elements and how architects are providing energy-efficient solutions to help lower our collective and individual carbon footprint. The short webisodes will focus on instruction to help those planning on a new building or renovating an existing structure. Topic areas will include water conservation, renewable energy sources, eco-friendly daylighting and holistic building plans.

The series began the week of July 7th and new videos will be posted every other week through December 8, 2008.

The videos can be seen at www.aia.org/walkthewalk.

Home Buyers Increasingly Thinking and Buying Green
Lower energy costs, healthier living and improved indoor and outdoor environments are increasingly demanded by and available to home buyers at all income levels, according to preliminary findings from a survey released by the U.S. Green Building Council (USGBC) and McGraw-Hill Construction.

Families and individual homeowners with the lowest incomes are overwhelmingly satisfied with their green home, more likely to recommend a green home to family and friends and strongly prefer green homes as a purchasing option. The survey found that 78 percent of homeowners earning less than $50,000 per year say they would be more inclined to purchase a green home. The first findings from the study were released at the site of affordable multi-family homes under construction in the Bronx, N.Y. The development, Melrose Commons 5, is being built with LEED certification as a goal.

"The benefits of green homebuilding must be accessible, and affordable, for every American family," said Michelle Moore, senior vice president, U.S. Green Building Council, which develops and administers the LEED Green Building Rating System for homes, offices, schools, hospitals and other buildings nationwide.

“Being able to afford your utility bill is as important as being able to pay your mortgage,” Moore added. “Green homes are shining through as the bright spot in an otherwise gloomy housing market.”

The survey estimates that within the last three years more than 330,000 market rate homes with green features have been built in the United States, representing a $36 billion per year industry. An estimated 60,000 of those homes were third-party certified through LEED or a local green building program.

“Fully committed to sustainability for the long-term, green home buyers and remodelers cut across all demographic lines, regardless of income, zip code or anything else. Builders are seeing great interest in green across all income levels,” said Robert Ivy, vice president and editorial director of McGraw-Hill Construction.

“We're crossing the tipping point for green home building,” added Harvey M. Bernstein, McGraw-Hill Construction vice president of Industry Analytics, Alliances and Strategic Initiatives. “Concerns about energy costs, health and even resale value are adding up green for builders, buyers and renters. Green homes are here to stay.”

The full McGraw-Hill Construction SmartMarket Report will be released this fall. The aim, said Bernstein, is to help builders better respond to the needs of green home buyers and to help product manufacturers and other industry players understand the ever-expanding value of this marketplace.

Key Study Findings
McGraw-Hill Construction surveyed a representative sample of one million U.S. households (equating to three million consumers) to find those individuals who had purchased LEED certified and other green homes over the last three years and probe them about their attitudes. The vast majority (83 percent) said their new homes will lower operating costs; lower energy bills within the first year after purchase (79 percent); and also lower water bills within the first year after purchase (68 percent).

Going green was the top reason cited by survey respondents for remodeling their home. Environmental benefits such as lower energy costs and healthier air were identified by 42 percent of respondents as their main reason for home improvements; 34 percent cited increased comfort; only 24 percent said improved appearance was their main benefit from remodeling.

Other key findings of the McGraw-Hill Construction survey include: 70 percent of buyers are either more or much more inclined to purchase a green home over a conventional home in down housing market. More than half (56 percent) of those surveyed who have bought green homes earn less than $75,000 per year; 29 percent earn less than $50,000. Overall, lower income buyers say they found tax credits and government programs, indoor air quality benefits and green certifications to be the most important incentives for them to buy green homes. Making homes greener is now the number one reason for home improvement (42 percent) over remodeling for comfort reasons (34 percent) or to improve appearance (24 percent). Almost half (44 percent) of homes renovated between 2005 and 2007 used products chosen for their green attributes

More than 80 percent of respondents said they believe that green homes are not just more economical, but offer better and healthier places to live. To that end, a new long-term study by the Mount Sinai School of Medicine will track the impact green homes have on childhood asthma in children who will soon live in the Melrose 5 homes. Currently one in six kids in the South Bronx suffers from asthma, one of the highest rates in the nation.

Green Building Alliance Announces $140,000
In Product Innovation Grants to Three Recipients
Second Round Brings Total Disbursements to $558,000

Green Building Alliance (GBA) today announced a total of $140,000 in Product Innovation Grants for three projects that seek to develop and introduce new and enhanced green building products. This is the second round of Product Innovation Grants awarded since GBA initiated its Green Building Product Initiative; a total of ten Pennsylvania recipients have received more than half million dollars. The inaugural round of grants was awarded in December 2007.

Awarded through a competitive selection process, GBA’s Product Innovation Grants will expedite the commercialization of new building products within the fast growing green building market. The green building product market is estimated to be worth $30 to $40 billion annually by 2010.

“The green market represents a significant economic opportunity for Pennsylvania, which ranks second in the country in the number of LEED® certified buildings. Our Product Innovation Grant projects include collaboration between private sector companies and university teams located within Pennsylvania,” said Rebecca Flora, Executive Director of Green Building Alliance, whose entrepreneurial spirit has steered the success of this 15-year old non-profit that drives market demand and facilitates green building practices and products in Western Pennsylvania. Ms. Flora also is the current chair of U.S. GreenBuilding Council.

Three grants were awarded from fourteen proposals received by the Green Building Alliance for the second round of Product Innovation Grants. Recipients include:
$100,000 for commercialization of an innovative ventilation air energy recovery unit that utilizes a patent-pending membrane technology to allow water vapor molecules to pass freely while blocking other air molecules and particles; a project of Energy Wall, LLC, and Pennsylvania State University.

Two $20,000 Proof of Concept grants:

• A modular, reconfigurable and sustainable residential floor & wall system; a project of
  Drexel University;
• ReD, a responsive daylighting panel integrating phase change material; a project of Temple University.

“We solicited Product Innovation Grant proposals in early January from established Pennsylvania companies looking to develop innovative sustainable building products or green existing product lines or processes, from start-up Pennsylvania companies looking to enter the green building product marketplace, and from Pennsylvania university researchers and teams developing innovative green building products and the processes to produce them,” explained Aurora Sharrard, PhD, GBA’s Research Manager and program manager of the Product Innovation Grants. “We’re very pleased with the continued interest in the product grant program and look forward to the third round of submissions.”

Pennsylvania State University and Drexel University have received awards in both rounds of Product Innovation Grants. A total of $181,062 has been awarded for full proposals submitted by partnerships including Penn State and $40,000 has been awarded to Drexel for two Proof-of-Concept grants. Carnegie Mellon University, Temple University, University of Pittsburgh and Villanova University have also been partners on or recipients of Product Innovation Grants.

Proposals are assessed based on the criteria of green building leadership, technical merit, commercialization plan viability, partnership resources and potential market impact. Grant award decisions are made at the discretion of GBA on the recommendations of the Product Innovation Grant Review Committee, which is comprised of individuals with a variety of relevant experience, expertise and background, including consultants, manufacturers, investors, economic development stakeholders and academic researchers. Participation on the Review Committee is kept confidential.

A Request for Proposals for the third round of Product Innovation Grants has been released, with final proposals due September 12, 2008. Awards will be announced in December 2008. Submission Information

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How to Choose Green Finish Materials

Cordwood Masonry Workshop - Sept. 19-21
Cordwood masonry is an old building technique by which walls are constructed of short logs laid up widthwise in the wall, like a rank of firewood. Rob and Jaki Roy, of Earthwood Building School in West Chazy, NY, have been teaching cordwood for 23 years and have written many books on this subject. They will be conducting a 3-day Cordwood Masonry Workshop at Lake Pend Oreille, near Sandpoint, Idaho, that will include partial classroom time and hands on building of a guesthouse. This will be a fun time of learning as well enjoying the acreage and the lake.

Cost: $300 (includes simple accommodation and meals)

For more information, call Thea Alex at 509.993.1990 or theamataya@yahoo.com

World Sustainable Building Conference - Sept. 21-25
The impact of building and planning on sustainability and Climate Change will
be on the agenda at the 2008 World Sustainable Building Conference (SB08). Held every three years, this will be the first time this international event has been held in Australia. SB08 will set the agenda for global solutions for sustainable building and planning for business and industry – including government policies.

Key sessions include:

• change agents (tools and strategies that are transforming the building and property
  sector to take up sustainability principles)
• building regulation and standards - how different countries are setting policies and
  minimum standards of energy and water efficiency
• future cities and communities (what will they be like?)
• the economics of sustainable building
• next-generation building technology
• global issues: buildings' and cities' ecological footprint and climate adaptation
  strategies
  

West Coast Green 2008 - Sept. 25-27
West Coast Green 2008, the nation’s largest conference and expo on innovation, green building, business and design takes place this September in San Jose, California. The event will host 200 speakers, 380 exhibits, advanced interactive educational tracks, dynamic networking opportunities and a complete green show house made of shipping containers that will be placed on the show house floor.