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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)
Sustainable Communities Movement
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
Sustainable Communities Movement
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.
Sustainable Communities Movement
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…
Green Building Movement
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)
Green Building Movement
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
Green Building Movement
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
Green Building Movement
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/
Green Building Movement
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
Green Building Movement
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.
Community Benchmarking
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
Community Benchmarking
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)
Community Benchmarking
Austin, Texas
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.
Community Benchmarking
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
Community Benchmarking
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/
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
Community Benchmarking
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
Community Benchmarking
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
Community Benchmarking
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.
Community Benchmarking
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
Community Benchmarking
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
Community Benchmarking
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
Community Benchmarking
San Francisco, California
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
Community Benchmarking
San Francisco, California
*GreenPoints is a rating tool developed by California‟s Build It Green organization: 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
Community Benchmarking
Berkeley, California
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
Community Benchmarking
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
Green Building Market Sustainability
The U.S. commercial sector has picked up on the trend.
Date © Finpro 32
April 2007
May 2007
Green Building Market Sustainability
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
Green Building Market Sustainability
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
Green Building Market Sustainability
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
Green Building Market Sustainability
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
Green Building Market Sustainability
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
Green Building Market Sustainability
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