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Key Drivers in Green Construction Market


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A presentation on several key drivers impacting the green building construction market. Highlights include regulations, legislation and incentives affecting designers, contractors and building owners. The presentation has been given publicly several times in 2009 and 2010.

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Key Drivers in Green Construction Market

  1. 1. Key Drivers for the Green Construction Industry Allentown CSI Expo April 21, 2010 Scott Kriner, CSI, AIA, LEED AP O+M President Green Metal Consulting, Inc.
  2. 2. Converging Driving Forces Cultural Shift Insurance Religion Realtors Global Climate Change Politics Education Media Rating & Labeling Programs Lending Institutions Initiatives & Incentives Energy Regulations Legislation
  3. 4. Building Themes of the Next Decade <ul><li>“ Green building and computer technology assistance (ex. BIM) are expected to re-form the industry in ways current practitioners are just beginning to imagine.” </li></ul><ul><li> (prediction of Business Review’s economic forum 2007) </li></ul>
  4. 5. What is GREEN Building? The practice of increasing the efficiency of buildings‘ use of energy , water and materials
  5. 6. Sustainable Building Practice <ul><li>“ Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” – ASTM E2114 </li></ul>
  6. 7. You May Already Be Building Green and Don’t Even Know It!
  7. 8. This is NOT Sustainable Building !
  8. 9. This is Sustainable Building
  9. 10. Green Market by Sector Source: McGraw Hill Construction - 2007 *
  10. 11. Green Construction <ul><li>$13 billion of green non-res construction put in place in 2006 </li></ul><ul><li>$49 billion of green non-res construction put in place in 2008 </li></ul><ul><li>$140 billion of green non-res construction expected by 2013 </li></ul><ul><li>“ Green business has shifted from a movement to a market.” – Greener World Media </li></ul>FMI 2008 US Construction Overview, and BRG Group
  11. 12. Why Build Green?
  12. 13. Benefits of GREEN Buildings <ul><li>Reduce energy use 30-50% </li></ul><ul><li>Reduce impact on solid waste stream </li></ul><ul><li>Command higher rents </li></ul><ul><li>Save employers $58 Billion of sick time </li></ul><ul><li>Add $180 Billion in increased worker productivity </li></ul>
  13. 14. Energy Dependence
  14. 15. The USA’s 2-5-25 Conundrum <ul><li>2% of the resources </li></ul><ul><li>5% of the population </li></ul><ul><li>25% of the energy </li></ul>
  15. 16. Our Addiction to Oil <ul><li>The level of oil imports will remain between 53% and 68% of our total oil usage through 2030 </li></ul>Source: Energy Information Administration (EIA)
  16. 17. Electricity Generation Source: Energy Information Administration Coal Nuclear Natural Gas Hydro Oil Other
  17. 18. By 2030, electricity demands will be 45% greater than today Source: Nuclear Energy Institute
  18. 19. Source: Nuclear Energy Institute With current fuel mix, US needs to construct… 50 nuclear plants (1000 MW) 260 coal-fired plants (600 MW) 280 natural gas-fired plants (400 MW) 90 renewable energy plants (100 MW)
  19. 20. Renewable Energy? <ul><li>Solar </li></ul><ul><li>Wind </li></ul><ul><li>Geothermal </li></ul><ul><li>Tidal </li></ul><ul><li>Biomass </li></ul><ul><li>Hydro </li></ul>*
  20. 23. Conservation and Efficiency Peter Turnbull, PG&E “ The cheapest, most reliable source of new energy is saved energy.” Peter Turnbull, PGE
  21. 24. Energy Hogs Buildings 39% Transport 33% Industry 28%
  22. 25. Energy: Largest Controllable Operating Expense
  23. 26. Source: IISI WORLD In next 50 years the world will erect as many buildings as we have built during the last 5000 years
  24. 27. Population Growth 60% of the world population will live in cities by 2030 US
  25. 28. Building Boom in U.S. Roughly 89 million new or replacement homes will be built in U.S. over next 30 years to keep up with population growth. By 2030 about half of the buildings in America will have been built after 2000
  26. 29. Building Boom in United States <ul><li>By 2030 about half of the buildings in America will have been built after 2000 </li></ul><ul><li>Roughly 89 million new or replacement homes will be built in U.S. over next 30 years to keep up with population growth. </li></ul>
  27. 30. Climate Change
  28. 31. “ Best estimate that temperatures will rise between 3.2 º to 7.8 º by 2100” “ Sea levels could rise 7 to 23” by end of century” “ 90% certainty that global climate change is caused by human activity”
  29. 33. Is Climate Change Occurring ?
  30. 34. Or Isn’t It ?
  31. 36. Emphasis on Transportation and Industry
  32. 37. California’s Environmental Performance Label – 2009 Cars
  33. 38. What about Buildings?
  34. 39. Energy Efficiency and the Environment
  35. 40. Society
  36. 41. Print media, Websites, Blogs, Hollywood, Television, Concerts
  37. 42. Religion
  38. 43. Religious Support World’s First Carbon Neutral State … <ul><li>Planting trees to restore a 37 acre ancient forest in Hungary </li></ul>The Vatican
  39. 44. Culture
  40. 45. Regulations
  41. 46. Energy Codes <ul><li>Reduce energy consumption </li></ul><ul><li>Reduce utility expenses </li></ul><ul><li>Reduce environmental emissions </li></ul><ul><li>Improve thermal comfort </li></ul><ul><li>Extend natural resources </li></ul>
  42. 47. Commercial Energy Codes
  43. 48. <ul><li>Stringency has increased 23% </li></ul><ul><li>DOE/IECC/ASHRAE </li></ul><ul><li>Zero energy buildings </li></ul>
  44. 49. State Building Energy Codes
  45. 50. New Standards since 2007 <ul><li>GBI Green Globes Standard - Covering commercial (non-residential) buildings. </li></ul><ul><li>ASTM Standards Principles of Sustainability Relative to Buildings </li></ul><ul><li>NAHB Standard (ICC-700) Green Residential Building Standard </li></ul><ul><li>ASHRAE Standard 189.1 Standard for the Design of High-Performance Green Buildings Except Low-Rise Residential Buildings. </li></ul><ul><li>ISO 21930:2007 Sustainability in Building Construction – Environmental Declaration of Building Products </li></ul>
  46. 51. ASTM Standards <ul><li>E 2432 Guide for General Principles of Sustainability Relative to Buildings </li></ul><ul><ul><li>Identifies environmental, economic & social principles on equal footing </li></ul></ul><ul><li>E60 Sustainability </li></ul><ul><li>E2114, Terminology for Sustainability Relative to the Performance of Buildings </li></ul><ul><li>Balloting draft Specification for the Minimum Attributes of a building that Promotes Sustainability (WK11944) </li></ul>
  47. 52. <ul><li>National Green Building Standard (ICC 700) </li></ul><ul><li>Enhanced Green Home Building Guidelines </li></ul><ul><li>Released January 2009 </li></ul>
  48. 53. Contents <ul><li>Site Design and Development </li></ul><ul><li>Lot Design, Preparation and Development </li></ul><ul><li>Energy Efficiency </li></ul><ul><li>Water Efficiency </li></ul><ul><li>Indoor Environmental Quality </li></ul><ul><li>Operation, Maintenance and Building Owner Education </li></ul>
  49. 54. <ul><li>ASHRAE Standard 189.1 </li></ul><ul><li>Modeled after LEED program, but written in code language </li></ul><ul><li>Released February 2010 </li></ul>
  50. 55. Contents <ul><li>Site Sustainability </li></ul><ul><li>Water Use Efficiency </li></ul><ul><li>Energy Efficiency </li></ul><ul><li>Indoor Environmental Quality </li></ul><ul><li>Impact on Atmosphere, Materials and Resources </li></ul><ul><li>Construction and Plans for Operation </li></ul>
  51. 56. CALGREEN Code - Effective Jan 1, 2011 First Mandatory Statewide Standards Code for Green Construction
  52. 57. <ul><li>Mandatory 20% water use reductions </li></ul><ul><li>Divert 50% of construction waste from landfills </li></ul><ul><li>Mandatory inspections of energy systems </li></ul><ul><li>Low pollutant emitting finish materials </li></ul>
  53. 58. International Code Council ASHRAE US Green Building Council Illuminating Eng. Society of N. America Int’l Green Construction Code
  54. 59. <ul><li>“ model” code approach </li></ul><ul><li>Minimum and advanced performance </li></ul><ul><li>Prescriptive, performance and pre-engineered approaches </li></ul><ul><li>Overlay to ICC codes </li></ul><ul><li>Work in tandem with green rating programs </li></ul>
  55. 60. IgCC ASHRAE
  56. 61. <ul><li>Site Development and Land Use </li></ul><ul><li>Material Resource Conservation & Efficiency </li></ul><ul><li>Energy Conservation, Efficiency and Atmospheric Quality </li></ul><ul><li>Water Resource Conservation and Efficiency </li></ul><ul><li>Indoor Environmental Quality </li></ul><ul><li>Building Operation Maintenance and Owner Education </li></ul><ul><li>Existing Buildings </li></ul><ul><li>Existing Building Site Development </li></ul>
  57. 62. Schedule <ul><li>Sustainable Building Technology Committee meetings to develop draft code language </li></ul><ul><li>First Draft of IgCC (Version 1.0) </li></ul><ul><li>Public Comment Deadline. </li></ul><ul><li>Hearings to Review Comments </li></ul><ul><li>Revised draft submitted for final action hearings (Version 2.0)* </li></ul>Summer 2009 – Spring 2010 MARCH 15, 2010 MAY 14, 2010 AUGUST 2010 NOVEMBER 2010 * V 2.0 stands until 2012 codes are updated
  58. 63. Energy Labels for Buildings ?
  59. 65. Residential Labeling
  60. 66. Proposal from architect Michelle Kaufman Designs
  61. 67. EPBD Concerted Action ’ ’ ’ ’ ’ ’ ’ ’ ’’’’ ’ ’ ’ ’ ’ ’ ’ ’ ENERGY CERTIFICATES ’ ’’ ’ 15
  62. 68. Incentives
  63. 69. Statewide Incentives
  64. 71. Green Building Incentives State and local levels State level Local level
  65. 72. Local Incentives <ul><li>Expedited permitting process </li></ul><ul><li>Expedited plan reviews </li></ul><ul><li>Tax refund/abatement/ credit </li></ul><ul><li>Bond funds </li></ul><ul><li>Loans </li></ul><ul><li>Direct grants </li></ul><ul><li>Utility rebates </li></ul><ul><li>Energy-efficient rebates </li></ul><ul><li>Density bonuses </li></ul><ul><li>Reduced development fees </li></ul><ul><li>Marketing materials </li></ul><ul><li>LEED cert fees refund </li></ul>
  66. 76. Legislation
  67. 77. Federal <ul><li>Energy Independence and Security Act of 2007 </li></ul><ul><ul><li>EPAct 2005 – extension </li></ul></ul><ul><ul><li>Authorization of Zero- Energy Commercial Building Initiative </li></ul></ul><ul><li>Federal executive orders </li></ul><ul><li>Pending Legislation </li></ul>
  68. 78. <ul><li>EO 13101 directs Federal agencies to purchase products that are manufactured using recycled content materials </li></ul><ul><ul><li>EO13423 requires federal agencies to use sustainable building practices </li></ul></ul>
  69. 79. Comprehensive Procurement Guideline IV for Procurement of Products Containing Recovered Materials EPA - April 30, 2004
  70. 80. Legislative Climate Change Source: World Resources Institute *
  71. 82. <ul><li>American Recovery & Reinvestment Act </li></ul><ul><li>American Clean Energy & Security Act </li></ul><ul><li>21 st Century Green High-Performance Public School Facilities Act </li></ul><ul><li>Expanding Building Efficiency Act </li></ul><ul><li>Energy Efficiency Modernization Act </li></ul><ul><li>Water Accountability Tax Efficiency Reinvestment Act </li></ul><ul><li>Livable Communities Act </li></ul><ul><li>Federal Personnel Training Act </li></ul><ul><li>Clean Energy and American Jobs Act </li></ul><ul><li>American Clean Energy and Leadership Act </li></ul><ul><li>Energy Efficiency in Housing Act </li></ul><ul><li>Livable Communities Act </li></ul><ul><li>Expanding Building Efficiency Act </li></ul><ul><li>School Building Fairness Act </li></ul><ul><li>Clean Energy for Homes and Buildings Act </li></ul><ul><li>Energy Efficiency Modernization Act </li></ul><ul><li>Water Accountability Tax Efficiency Reinvestment Act </li></ul><ul><li>Federal Agency Energy Efficiency Improvement Act </li></ul>Bills Introduced in the last year
  72. 83. State and Local Laws <ul><li>State legislative bills </li></ul><ul><li>State executive orders </li></ul><ul><li>State mandates requiring minimum level of LEED for public buildings </li></ul><ul><li>City ordinances </li></ul>*
  73. 84. Action in California Assembly 25% reduction in GHG by 2020 focusing on building energy efficiency 20% increase in standards for non-res buildings by 2015.
  74. 85. Industry Initiatives
  75. 86. Architecture 2030 Challenge Eliminate fossil-fuel energy consumption from all new buildings by 2030
  76. 87. Zero-Energy Commercial Building Initiative * Achieve marketable zero-energy buildings by 2030
  77. 88. Off-Grid Building – San Francisco
  78. 89. Voluntary Programs
  79. 90. Voluntary Programs <ul><li>LEED </li></ul><ul><li>Green Globes </li></ul><ul><li>ENERGY STAR </li></ul><ul><li>GreenSpec </li></ul><ul><li>Green Guard </li></ul>
  80. 91. LEED 2009
  81. 92. Categories <ul><li>Sustainable Sites </li></ul><ul><li>Water Efficiency </li></ul><ul><li>Energy and Atmosphere </li></ul><ul><li>Materials and Resources </li></ul><ul><li>Indoor Environmental Quality </li></ul><ul><li>Innovation and Design </li></ul><ul><li>Regional Priority </li></ul>
  82. 96. <ul><li>Online assessment tool for commercial structures </li></ul><ul><li>Benchmarks energy and environmental performance against best practices in energy, water, waste management, hazardous materials, and indoor environment </li></ul><ul><li>ANSI/GBI 01-2010: Green Building Assessment Protocol for Commercial Buildings </li></ul>
  83. 99. Green is Changing How We Build
  84. 100. <ul><li>World’s largest building- mounted wind turbine system. </li></ul><ul><li>780’ high twin towers </li></ul><ul><li>275 kW turbines contribute up to 15% of building’s energy needs </li></ul>World Trade Center Bahrain
  85. 101. <ul><li>4,000 PV panels </li></ul><ul><li>3 wind turbines -29m diameter </li></ul><ul><li>Energy consumption reduced by 65% </li></ul><ul><li>Water consumption reduced by 40% </li></ul>International Financial Center Dubai
  86. 102. Pearl River Tower China <ul><li>Vertical axis wind turbines </li></ul><ul><li>PV solar collectors </li></ul><ul><li>Rainwater collection system </li></ul><ul><li>Cooling by heat sinks and vertical vents </li></ul>
  87. 103. <ul><li>25-story mixed-use tower housing condo units, offices and retail </li></ul><ul><li>Wind turbines integrated into exterior skin </li></ul><ul><li>Photovoltaic panels and solar hot water </li></ul>COR Building Miami
  88. 104. Where We’re Headed Complex Labeling Programs Building Ratings Lower Carbon Footprints Energy Conservation Net Zero Energy Construction Whole System Thermal Requirements New Technologies Stringent Codes and Standards Carbon Based Economy Life Cycle Assessment
  89. 105. The CSI Darwin Awards
  90. 109. Questions ?