Tehokas ja kestävä kunta -seminaari 1.10.2009 /Michael Lovejoy

Sustainable Communities: USA Benchmarking

Michael Lovejoy

Finpro Americas Region, Houston

1 October 2009

Finpro has undertaken a study of sustainable building in the USA, focusing

on climate change and energy efficiency initiatives in a select group of

leading communities that have been referenced to the major European

climate zones.

Date © Finpro 2

Energy & Climate Green Building

1. San Francisco, CA* 1. Portland, OR

1. Seattle, WA 2. Washington, DC*

1. Portland, OR 3. Atlanta, GA

4. Sacramento, CA 4. Seattle, WA

5. Austin, TX 5. Denver, CO

6. Denver, CO 6. San Francisco, CA*

7. New York, NY 7. Boston, MA

7. Albuquerque, NM 8. Sacramento, CA

7. Las Vegas, NV 9. Austin, TX

7. Omaha, NE 10. Las Vegas, NV

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Introduction

* Includes Berkeley, CA, & Baltimore, MD

There is „movement‟ underway in the USA, and it is having a profound effect

at the community level.

Date

© Finpro

3

[In the USA]…a growing number of

grassroots and public sector groups are

initiating efforts to simultaneously address

environmental, economic, and social issues,

increase community well-being, and secure

the long-term health of human and natural

systems. Collectively termed the

'sustainable communities movement', since

1990, dozens, if not hundreds, of sustainable

communities projects have been initiated in

cities, counties, and regions across the

country.

R. Gahin; V. Veleva; M. Hart, “Do Indicators Help Create

Sustainable Communities? “ Local Environment, 6 December

2003.

In June 2004, the U.S. Council of

Mayors described sustainable

community as “…the synthesis

of environmental stewardship,

economic and community

development, social equity,

affordable housing, and public

participation in the governing

process.”

Sustainable Communities Movement

Formal community understanding of sustainability emerged in the USA

during the 1990s.

Date © Finpro 4

Early Milestones in the Sustainable

Communities Movement

1993: Creation of the President's

Council On Sustainable Development*

1996: U.S. Conference of Mayors &

the National Association of Counties

form the Joint Center for Sustainable

Communities.

* Sustainable development “meets the

needs of the present without compromising

the ability of future generations to meet their

own needs,” Brundtland Commission

(United nations), 1987.

8 Pillars of a Sustainable

Community

1. A compact complete community

2. Low impact transportation

3. Green buildings

4. Multi-dimensional landscape

5. Innovative utility infrastructure

6. Healthy local food systems

7. Facilities / Programs / Process

for social health

8. Sustainable economic systems

Source: U.S. Green Building Council (USGBC)


Smart growth & climate change have become the leading sustainability

issues among U.S. cities & counties.

67 %

48 %

33 %

29 %

29 %

24 %

19 %

14 %

14 %

14 %

5 %

5 %

Smart Growth

Climate Change

Fiscal Viability

Energy Conservation

Transportation

Community Revitalization

Economic Development

Community Engatement

Habitat & Land Conservation

Social Justice

Energy Independence

Recycling

Top Three Sustainability Issues(Response Percent)

Date © Finpro 5

Source: ICMA, Fall 2007


Smart Growth Principles

1. Mix land uses

2. Take advantage of compact building

design

3. Create a range of housing opportunities &

choices

4. Create walkable neighborhoods

5. Foster distinctive, attractive communities

with a strong sense of place

6. Preserve open space, farmland, natural

beauty, and critical environmental areas

7. Strengthen and direct development

towards existing communities

8. Provide a variety of transportation choices

9. Make development decisions predictable,

fair & cost effective

10.Encourage community & stakeholder

collaboration in development decisions

Source: U.S. EPA / Smart Growth Network

While the U.S. Federal Government & many State Governments have

lagged in the adoption of climate action plans, local communities are taking

matters into their own hands.

Date © Finpro 6

In 2005, the United States

Conference of Mayors

(USCM) unanimously

adopted the U.S. Mayors

Climate Protection

Agreement, whereby they

agreed that their cities will

meet or exceed the Kyoto

Protocol on climate

change.


The U.S. Department of Energy reports that the growth in U.S. buildings‟

energy consumption has resulted in carbon dioxide emissions rising from

about a third of total U.S. emissions in 1980 to almost 40 percent today.

40 %

72 %

55 %

38 %

19 %

52 %

40 %

30 %

14 %

Energy Use

Electricity Consumtion

Natural Gas

Cabon Dioxide (CO2) Emissions

Nitrogen Oxide (NOx)

Sulphur Dioxide (SO2)

Raw Materials Use

Waste Output

Potable Water Consumption

Source: USGBC & USDOE 2009 estimates

Measured Impacts of U.S. Built EnvironmentAs a percent of total USA

Date © Finpro 7

Green Building Movement

In response, a green building movement emerged during the early 1990s in

the USA, and it is impacting building codes in a growing number of

communities today.

Date © Finpro 8

U.S. Municipal Green Building Codes

Source: U.S. GBC, February 2009

'Green' building codes sprout up

across USAUSA Today, 13 August 2008

There's been a huge groundswell in

green-building leadership at state

and local levels. It's remarkable,"

says Jason Hartke of the U.S.

Green Building Council…

Hartke attributes the trend to

higher energy costs and climate-

change concerns…


The impetus behind the movement is frustration with traditional building

codes, which are seen as „environmental neutral.‟

Date © Finpro 9

Definition of Green Building

Green building is the practice of

creating structures and using

processes that are environmentally

responsible and resource-efficient

throughout a building’s life-cycle from

siting to design, construction,

operation, maintenance, renovation and

deconstruction. This complements the

classical building design concerns of

economy, utility, durability, and comfort.

Green building is also known as

sustainable or high performance

building.

Source: U.S. Environmental Protection Agency (EPA)


Energy

Use

CO2

Emissions

Water

Use

Solid

Waste

In the USA, Green Buildings can reduce…

20* to

50** %

33*** to

39** %

40**%

70**%

* Turner, C. & Frankel (2008), Energy Performance of LEED

for New Construction Buildings

** Katz, G. (2003), The Costs & Financial Benefits of Green

Building

*** U.S. GSA Public Building Service (2008), Assessing green

building performance

Source: U.S. Green Building Council

Building codes are developed at the national level in the USA by basically

two non-profit organizations. They are adopted at the state and local level

and then enforced locally.

Date © Finpro 10

Status of U.S.

Commercial Energy

Codes by State

Source: U.S. Department of Energy


Unfortunately, as codes are improved upon, states & communities lag in

their adoption.

Date © Finpro 11

Status of U.S.

Residential Energy

Codes by State

Source: U.S. Department of Energy


Arising out of the green building movement are voluntary national rating

programs that have been developed by public and private entities.

Date © Finpro 12

Leading U.S. Green Building Rating Programs

Energy Star: A joint program of the U.S. Environmental Protection Agency and the

U.S. Department of Energy that rates (labels) both building and products for energy

efficiency. www.energystar.gov/

The Green Building Initiative‟s GBI Green Globes: Online, point based green rating

tool for new commercial buildings that is growing in popularity. www.thegbi.org/green-

globes/

The National Association of Home Builders (NAHB) Model Green Home Building

Guidelines: Online, point-based green rating tool for new residential green buildings

that is popular with some developers because it is less expensive. www.nahbgreen.org/

USGBC Leadership in in Energy & Environmental Design (LEED): Point based

rating tools, covering various building types, and originally based on the UK‟s BREEAM

system but modified to make it less cumbersome. www.usgbc.org/LEED/


http://www.energystar.gov/

http://www.thegbi.org/green-globes/



http://www.nahbgreen.org/

http://www.usgbc.org/LEED/

LEED 2009 Rating Systems

Building Lifecycle

Design Construction Operations

Schools, Healthcare, RetailExisting

Buildings

Operations &

Maintenance

New Construction

Core & Shell

Commercial Interiors

Neighborhood Development*

Homes

* Under development

LEED‟s success is based upon its penetration of the non-residential sector:

20156 cumulative registered projects, summing to 322 million square feet

(29.9 million m²).

Levels of Certification

Certified 40 – 49 points

Silver 50 – 59 points

Gold 60 – 79 points

Platinum 80 points and greater

Point Rating (Maximum Possible by Category)

Sustainable Sites 26

Water Efficiency 10

Energy & Atmosphere 35

Materials & Resources 14

Indoor Environmental Air Quality 15

Innovation in Design 6

Regional Priority 4

Date © Finpro 13


In the interest of time, the green building initiatives of five communities will

be reviewed for their different approaches to climate change.

Date © Finpro 14

Community Benchmarking

Introduction

1. Austin, Texas

2. Boston, Massachusetts

3. Portland, Oregon

4. San Francisco, California

5. Berkeley, California

Note: Washington, D.C., and Baltimore, Maryland are also

part of the larger study.

In 1992, Austin, Texas, was the first U.S. city to develop a green building

program, which is located in the City-owned electric utility. In 2007, the City

adopted a Climate Protection Plan.

Date © Finpro 15

Austin Climate Protection Plan

2012: City facilities 100% renewable

energy

2015: New residential building net-zero

energy* [65% above 2002 baseline]

2015: New commercial buildings

increase energy efficiency by 75%*

2020: City vehicle fleet carbon neutral

2020: Austin Energy 30% renewable

energy

2020: Austin Energy at least 100MW

solar

2020: 700MW of new energy efficiency

* Developing requirements for existing

buildings to have an energy audit &

efficiency upgrade when sold.


Austin, Texas

A net-zero energy building produces on-site renewable energy that is equal

to or greater than the amount it consumes. Is Austin‟s goal achievable by

2015?

Date © Finpro 16

Renewable Energy

Solar PV

Solar Hot Water

Wind Turbines

Energy Efficiency

Efficient Appliances

High SEER AC

CFL & LED Lighting

Energy Conservation

Smart Design

Tight Construction

Better Building

Austin Solar Rebate Program

• Residential & Commercial = $4.50 per watt

• Residential maximum = $13,500 or 80% of installation cost

• Commercial maximum = $100,000 or 80% of installation cost

• For example: “For a typical residence the installation of a one kilowatt solar voltaic system, which is the smallest system considered practical, is between $6-to-$10 thousand. Austin Energy will rebate $4500.”

Source: Urban Home Austin, Summer 2008

Most

Cost

Efficient

www.barleypfeiffer.com/

Net-Zero

Formula


Austin, Texas

SOL Austin is fully-funded, commercial “sustainable neighborhood”

development project with net-zero energy homes. Construction started this

past summer.

Date © Finpro 17

Building‟s Green Profile

• Operable windows for passive ventilation and day-lighting, placing the majority of

windows on North and South facades and shading whenever possible.

• Gerkin Rhino windows, a low-e, double-pane, thermally broken aluminum frame

featuring Cardinal 366 glass.

• Structurally insulated panels for the walls and, consisting of 3.5" of EPS foam with 5/8"

Oriented Strand Board (OSB) laminated on either side, providing a continuous thermal

break, increased R-value, greatly reduce the outside air infiltration and reduce the

construction time by acting as structure, insulation and sheathing all in one system.

• Geothermal HVAC with seasonal energy efficiency rating (SEER) of 27 on models with

two stage compressors requiring about half the energy of a conventional HVAC system.

A by-product is hot water that can be recovered and used rather than heating water

through other means for daily use.

• Above efficiency measures working together reduce the total energy demand of house

by about 50% of standard construction. Remaining electricity generation comes from

polycrystalline photovoltaic arrays installed on the roof of each house, ranging in size

from 3-6 Kilowatts depending on the size of the house.

• Half of the home to be built offsite, utilizing modular construction in a climate-controlled

factory.

Construction: Ongoing

(2009)

Design Team:

• KRDB (Architects)


Austin, Texas

http://www.solaustin.com/blog/wp-content/uploads/2009/08/dsc_0096.jpg

With respect to energy efficiency, Austin is actively developing a smart grid

beyond the current one that was been fully installed this year. The

community has established a public-private partnership for design and

implementation.

Pecan Street Partners• City of Austin

• Austin Energy

• The University of Texas' Austin Technology Incubator

• Greater Austin Chamber of Commerce

• Environmental Defense Fund (EDF)

Corporate Partners• Dell

• GE Energy

• IBM

• Intel

• Oracle

• Cisco Systems

• Microsoft

• Freescale Semiconductor

• GridPoint

4 May 2009 © Finpro 18

Recent evidence indicates that where an

interactive consumer-to-utility facility exists in

terms of energy usage, consumers become more

involved in energy efficiency actions.


Austin, Texas

In conjunction with the adoption of Boston‟s Climate Action Plan in 2007,

was the revision of the City‟s building code.

Boston Climate Action Plan

Improve Buildings & Structures

[Requires] that all new municipal buildings, City-funded housing, and large private developments meet higher standards of energy use & conservation.

Optimize Energy Sources

Balance Transportation System

Manage Land

See: www.cityofboston.gov/climate/

Date © Finpro 19


Boston, Massachusetts

Article 37 of Boston‟s Building Code requires

all major new and rehabilitation construction

projects exceeding 50 thousand square feet

(4645.152 m²) to demonstrate that they are

able to qualify for 26 LEED New Construction

(NC) points plus four more points that are in

accordance with the City‟s priorities – e.g.,

transportation, energy, historic preservation,

and groundwater recharge. Boston does not

require third party certification – e.g., USGBC

– but the Boston Redevelopment Authority

must review and confirm developer‟s

certifications.

See: www.bostonredevelopmentauthority.org/zoning/

http://www.cityofboston.gov/climate/

http://www.bostonredevelopmentauthority.org/zoning/

In terms of advanced energy efficiency in buildings, Boston is aided by state

government, which established the Massachusetts Zero Net Energy Building

Task Force.

Date © Finpro 20


Boston, Massachusetts

Source: State of Massachusetts Zero Net Energy Buildings Task Force, March 2009

Getting to Zero

1. Adopt minimum energy performance standards

for buildings that, over time, drive continuous

improvements in energy efficiency by using the

market to identify the most cost effective methods

for meeting those standards.

2. Establish a “labeling” system to record the

energy efficiency of each residential and

commercial building.

3. Provide incentives to lower, if not remove,

existing financial & regulatory barriers to energy

efficiency gains, promote onsite renewable

energy, and address the incentive gap between

landlord and tenant.

4. Develop workforce able to deliver the services

that will be critical to the above

recommendations.

Twenty-year Horizon

In 1993, Portland was the first U.S. City to adopt a plan to reduce CO2

emissions. The current plan‟s 2012 goals are targeted to be met by a

proposed „carrot-and-stick‟ („”feebate”) approach to building policy.

Building Performance Categories

Commercial &

Multifamily

Single-Family

Residential

New Buildings Feebate

based upon

building‟s

rating – e.g.,

Oregon Code,

LEED or

Living Building

Challenge

Performance

target &

Feebate if not

met

Existing

Buildings

Disclose

building

performance

Score

Exploring

financing &

performance

score

Date © Finpro 21

Goals

•Reduce greenhouse gas emissions that

cause climate change.

• Maximize energy efficiency and cost

savings.

• Keep housing and commercial buildings

affordable over time.

• Decrease consumption of potable water,

especially during summer months.

• Increase on-site stormwater

management.

• Reduce waste during construction and

operation.

• Improve indoor environmental quality,

occupant health and productivity.

• Increase the number of local living-wage

jobs.

Proposed City of Portland High Performance Green Building Policy


Portland, Oregon

Unlike Austin, Portland is not demanding sustainable new buildings, but it is

rewarding achievement and taxing the status quo.

New Commercial Buildings

Feebate

Option

Green

Building

Standards

Minimum

Requirements

(LEED

Credits)

Reward or

Fee

Reward Living

Building

Challenge

Net-zero

energy & water

documentation

(1 year)

$8.65 -

$17.30 per

ft2*

LEED

Platinum

10 energy

efficiency & 4

water efficiency

$3.46 -

$6.92 per

ft2

LEED Gold 8 energy

3 water

$1.73 -

$6.92 / ft2

Waiver LEED Silver 5 energy

2 water

Not

Applicable

Fee None** $1.73 -

$3.46 / ft2

New Multifamily Buildings (>465 m2)

Feebate

Option

Green

Building

Standards

Minimum

Requirements

(LEED

Credits)

Reward or

Fee

Reward Living

Building

Challenge

Net-zero

energy & water

documentation

(1 year)

$2.58 -

$5.15 per

ft2*

LEED

Platinum

10 energy

efficiency & 4

water efficiency

$1.03 -

$2.06 per

ft2

LEED Gold 8 energy

3 water

$0.51 -

$1.03 / ft2

Waiver LEED Silver 5 energy

2 water

Not

Applicable

Fee None** $0.51 -

$1.03 / ft2

Date © Finpro 22

* 1 m² = 10.7639 ft²

** If new construction simply meets current Oregon

Building Code, a fee is charged to the owner.

Source: City of Portland Office of Sustainable Development


Portland, Oregon

Typical “Code”

Buildings

Better Building

Practices

Other Standards

High

Performance

Green Buildings

LEED Silver +

Gold

LEED Certified

Pursuing

Sustainability

LEED Platinum

The Living

Building

Challenge

Restorative

Buildings*

Current

Technologies &

Services

e.g., Oregon State

Energy Efficiency

Design (SEED),

established in

1991

Net Zero

New

Technologies &

Services

The long-term goal is to look beyond LEED and establish a simplified

standard, with an expanded design challenge, using inspiration and not

accountability as the motivator. The result: The Living Building Challenge.

Date © Finpro 23

* Restorative is were human & natural systems cooperatively support each other indefinitely.


Portland, Oregon

A zero-energy, zero-water development, The Kenton Living Building‟s intent

is to change “the way people live & work in a space.”* The cost for this

learning experience is twice conventional construction.

Date © Finpro 24

Solar Water Heating

Directionally

Tuned Glazing

Compact

Dishwasher

Gypsum Board (95%

Recycled Content)

Dry Well

Pervious Surface

Salvaged Wood

Floor

Ventless 2-in-1

Clothes Dryer

Wet Cleaning

System

Basement Reuse:

Previous Building

Gray Water Storage Tank +

Visible Water GaugePhotovoltaic Array

+ Inverter

Heat Recovery

Ventilator (HRV)

Structurally Insulated

Panel Systems (SIPS)

Ladder Stud Framing +

Blown-in Insulation

Street Level

Composting Toilet

Rain Water Storage Tank

Kenton Living

Building: Key

Elements


Portland, Oregon

* Clark Brockman, Sera Architects

In July 1997, The Sustainability Plan for the City of San Francisco was

approved, establishing sustainable development as a fundamental goal of

municipal public policy.

Air Quality

• All municipal building projects meet specifications that incorporate air-quality

concerns (including specifications for the use of integrated pest management).

• Vehicle-miles traveled in private automobiles reduced 10%.

Energy, Climate Change & Ozone Depletion

• Each buildings energy characteristics (such as energy use & insulation) are disclosed

when it is listed for sale.

• CFC-based cooling & refrigeration equipment in San Francisco reduced by 50%.

Solid Waste

• City government diverts 60% of its current waste generation.

• The salvage & reuse of construction & demolition materials increased.

Water & Wastewater

• Tax credits & financial incentives in place for water reductions in homes &

businesses.

• A lake management plan implemented.

Date © Finpro 25


San Francisco, California

In 2002, the City adopted a Climate Action Plan, and in 2008, it adopted an

aggressive green building ordinance with specific climate action goals.

Estimated 2012 Green Building Ordinance Benefits & Results

CO2 Reductions 60 000 tons of CO2 emissions

Energy savings 220 000 megawatt hours of power

Drinking water savings 379 million liters of water*

Waste & storm water reductions 341 million liters of water*

Construction & demolition waste reduction 318 million kilos*

Increased recycled material valuations 200 million U.S. dollars

Reduced auto trips 540 thousand trips

Increased green power generation 37 thousand megawatt hours

Date © Finpro 26

*Note: Numbers rounded in

conversion from U.S. measures

Source: Mayor‟s Task Force on Green Building, 2007



New ordinance covers newly constructed commercial buildings over 5000 ft²

(465 m²) and all new residential buildings, and renovations to areas over

25000 ft² (2323 m²) in existing buildings that are undergoing major

upgrades.

Required Certification Levels by Year

Building Type 2009 2010 2011 2012

New Large

CommercialLEED Silver LEED Silver LEED Silver LEED Gold

Mid-Size

CommercialLEED Checklist LEED Checklist LEED Checklist

LEED Checklist

plus renewable

energy standard

Major Commercial

RenovationsLEED Silver LEED Silver LEED Silver LEED Gold

New High-Rise

Residential

LEED Certified or

50 GreenPoints*LEED Silver LEED Silver LEED Silver

New Mid-Size

Residential

No Rating

(25 GreenPoints)50 GreenPoints 75 GreenPoints 75 GreenPoints

New Small

Residential (units ≤

4)

No Rating

(25 GreenPoints)50 GreenPoints 50 GreenPoints 75 GreenPoints

Date © Finpro 27



*GreenPoints is a rating tool developed by California‟s Build It Green organization: www.builditgreen.org .

http://www.builditgreen.org/

Eighty-one percent of the citizens of Berkeley voted in November 2006 to

set a 2050 greenhouse gas reduction target of 80% (33% by 2020). In June

2009, the Berkeley City Council voted unanimously to adopt the Berkeley

Climate Action Plan.

Berkeley Climate Action Plan

Sustainable Transportation & Land Use

Building Energy Use – Community‟s task is to reduce conventional energy use in

every existing Berkeley home, business & institution:

• Strive to achieve zero net energy performance in new construction by 2020

• Enhance & lower the cost of energy efficiency services & standards for existing residential &

non-residential buildings

• Develop a local, clean, decentralized energy supply to meet a larger portion of the

community‟s energy needs

• Continue to increase energy efficiency and renewable energy use in public buildings

• Prepare local residents for job opportunities in the emerging green economy

Waste Reduction & Recycling

Community Outreach & Empowerment

See: http://www.berkeleyclimateaction.org/Content/10058/ClimateActionPlan.html

Date © Finpro 28


Berkeley, California

http://www.berkeleyclimateaction.org/Content/10058/ClimateActionPlan.html

Berkeley‟s climate action policies are reflected in its 2009 plan to accelerate

the deployment of residential solar PV panels by financing the upfront cost

and allowing the homeowner to repay it through a special property tax over

20 years.

Date © Finpro 29


Berkeley, California

"This program I think

could be our

contribution towards

dealing with global

warming and climate

change, and we hope

at the same time, that

it will not only deal

with the environmental

questions, we'll also

put people to work in

the process."

Tom Bates

Berkeley Mayor

February 2009

Solar &

Energy

Efficiency

Bonds

Sponsoring

Agency

(City/JPA/

County)

InstallerHome

Owner

County Tax

Collector

Special Taxes/

Assessments

Special Taxes/

AssessmentsSpecial Taxes/

Assessments

Bond Proceeds Bond Proceeds Installation Costs

CSI

Rebate*

Berkeley FIRST Program

* State of California provides an upfront cash rebate for solar installations under 50kW – e.g., $6.9K on

$32K system. The U.S. Federal government also offers a 30% tax credit after the first year.

In field studies conducted by Finpro & Tekes during Spring 2009, the

question was asked: “Is the sustainable, sustainable?”

U.S. Green Building Market Value

Metric 2006* 2008**

Total

$12 billion

(new)

$130 billion

(Renovations)

Commercial &

Institutional$4 billion

Office $8.7 billion

Educational $6 billion

Healthcare $2 billion

Residential $8 billion

Date © Finpro 30

* McGraw-Hill Construction, 2007

** 2009 U.S. Construction Report, FMI, December 2008

How Green a Recession? –

Sustainability Prospects in the

U.S. Real Estate industry

“…current recession will only slow,

but not fundamentally alter the

market shift to sustainable real

estate. Savvy, cash rich investors

will find numerous opportunities to

capitalize on these trends, even

during recession, while owners that

fail to adapt quickly to the new

standards may find their viability

jeopardized.”

Source: RREEF (Deutsche Bank), 2.2009

Green Building Market Sustainability

The media has played a major role in focusing public attention on climate

change in the USA in recent years.

Date © Finpro 31

May 2006September 2005 April 2006


http://en.wikipedia.org/wiki/File:Aninconvenienttruth.jpg

The U.S. commercial sector has picked up on the trend.

Date © Finpro 32

April 2007

May 2007


It‟s taken some time in coming, but a green „mindset‟ is taking root in

American consumers.

Date © Finpro 33

34,%

58,%

7,%

No Not Enough, but they are

doing something

Yes, they are doing enough

Source: RCLCO, January 2008

Are developers paying enough attention to the environment?

3 %

21 %

31 %

37 %

8 %

Source: McGraw-Hill, 2007

Knowledge & Awareness of Green Home Building


The same mindset can be found in corporate America.

Perceived U.S. Business Benefits to

„Greening‟ Real Estate

Operating cost decreases 8 to 9%*

Building value increases 7.5%*

Return on investment

improves

6.6%*

Occupancy ration increases 3.5%*

Rent ratio increases 3%**

Source: USGBC

* McGraw-Hill 2008

** McGraw-Hill 2007

Date © Finpro 34

McGraw Hill forecast in 2007

that 82% of corporate America

would be greening at least 16%

of their real estate portfolios

by 2009 and of these

corporations, 18% would be

greening more than 60% of

their portfolios.

Source: Greening of Corporate America

Smart Market Report


Electrochromic (Adjustable

Tint) Glazing

Vertical Axis Wind Power

Turbines Photovoltaic Solar

Power Arrays

Zero VOC (Volatile

Organic) Paint

Fuel Cell Rainwater Collection Tank

100% Recycled Structural

Steel

Green Roof & Water

Reclamation System

Intelligent Combined

Cooling, Heating &

Ventilation System

UTC Green

Building Concept

Regenerative Elevators,

Using Less Energy Going Up

& Providing Energy Going

Down

High-performance and sustainable building codes will lead to innovative

models of standardization.

Date © Finpro 35


The sustainable appears to be sustainable. Green building is projected to

grow in the USA.

U.S. Green Building Materials Demand(billion dollars)

Item 2003 2008 2013% Growth

2008-13

Floor Coverings 11.8 22.2 29.1 5.6

Concrete 6.4 9.5 14.3 8.4

Roofing 6.5 9.2 10.3 2.3

Windows 4.6 4.7 9.1 14.0

Doors 3.3 4.2 5.4 4.9

Other 6.6 7.2 12.3 11.5

Total Demand 39.2 56.9 80.5 7.2

Source: Fredonia Group, 2009

Date © Finpro 36

Factors Driving U.S. Green

Construction Market

1. Unprecedented level of

government initiatives

2. Heightened residential demand

for green construction

3. Improvements in sustainable

materials.

Source: U.S. Construction Overview, FMI, 2008


So, what does the U.S. green building market want, and how do they find

out about it?

Date © Finpro 37

76 %

59 %

54 %

46 %

Manufacturer's Websties

Internet Searches

Manufacturer's Sales Representative

Technical Binders

Most important sources of green building product information

Ranking of most important green

building product attributes:

1. Durability

2. Energy Star compliance

3. Life-cycle assessment

4. No- or low-volatile organic

compound (VOC) content

5. Ability to source products

regionally

Source: http://corporateportal.ppg.com/PPG/Newsroom/News/20090518.htm

PPG Industries May 2009 Survey of U.S. Architect‟s Green Building Product Sourcing*

* 612 Architects Surveyed;95%

Confidence Level


http://corporateportal.ppg.com/PPG/Newsroom/News/20090518.htm

The Berkeley, California, Office of Energy & Sustainable Development

states: “Unilateral policies in small cities have a limited impact; collaborate

with other communities and local utility.”

Date © Finpro 38

Local Consumer Demand(e.g. Berkeley FIRST Solar Financing Program)

Research

Institutionse.g., University of

California at Berkeley;

Lawrence Berkeley

National Laboratory

Local

Government (Berkeley, Oakland,

Emeryville,

Richmond)

Emerging Green Tech

Companies

Regional

“Cradle to Scale”

Strategy*

Professional

Linkages

& Referrals

Research Space

Needs

Land Use Policy

Training &

Workforce

Development

Business

Assistance

Marketing

Regional

Retention of

Green Industries

Presence

of Green

Suppliers & Services

Employment

in Emerging

Green Jobs

* Refers to an incentive process that allows hi-tech startups to evolve from garage labs to full-scale manufacturing.

Conclusion

East Bay Green Corridor

Climate action plans and advanced green building codes by the early

community adopters are as much about the localization of sustainable know-

how and intellectual capital as anything.

Cascadia Region Living Building ChallengePrerequisite Eight: Appropriate Materials/Services

Sourcing Radius

ZONE Material or Service Maximum Distance

7 Ideas 20004 km

6 Renewable Energy Technologies 14484 km

5Assemblies that actively contribute to

building performance once installed4828 km

4 Consultant Travel 2414 km

3 Light, low-density materials 1609 km

2 Medium Weight and density materials 805 km

1 Heavy, high density materials 402 km

Date © Finpro 39

“For Portland to remain

America‟s most sustainable

city, we need our

entrepreneurs and engineers

to keep innovating and finding

new ways to push the

envelope of sustainability.

These projects demonstrate

Portlanders‟ strong

commitment to green building

and sustainable site

development. Portland‟s true

advantage is the creativity of

our talented green building

professionals.”

Mayor Sam Adams

City of Portland

April 2009

Conclusion

News & Politics

Tehokas ja kestävä kunta -seminaari 1.10.2009 /Michael Lovejoy