Construction: Going Green

By Dan DiTieri

The growing movement known as "green building" is having an increasing impact on construction in the United States. Defined as increasing the efficiency by which buildings use energy, water and materials to reduce building impacts on human health and the environment, a green building has features that improve its ability to collect, maintain or transfer energy, provide an effective and efficient use of water resources and improve health conditions by the use of natural lighting and ventilation to eliminate a significant amount of mold and bacteria.

Achieving these objectives can be very significant, given that buildings account for 36 percent of total energy use in the United States. Buildings also account for almost two-thirds of our electric consumption as well as one-third of all greenhouse emissions and about one-eighth of all potable water consumption. A McGraw-Hill report predicts that green non-residential construction will comprise as much as 10 percent of all non-residential U.S. construction by 2010.

The acronym LEED stands for Leadership in Energy and Design Guidelines. These guidelines were first issued in 1999 by the U.S. Green Leadership in Energy and Design Guidelines Building Council (USGBC). The current version of LEED was issued in 2004 and the next one (version 3.0) is due to be released late this year or early in 2008. While no state or federal government has adopted LEED, it appears to be the most widely recognized benchmark for green design and construction. LEED guidelines cover five topical areas, and a building is awarded points depending on how closely it follows the guideline standards. The ranking system is as follows:

• Certified: 26-32 points
• Silver: 33-38 points
• Gold: 39-51 points
• Platinum: 52-69 points

In 2005, only nine buildings had been platinum certified, six of which were in the United States. In 2006, the global number reached 14 buildings.

Sustainable Site Issues (14 possible points)

The first topic addresses the selection of the project site and deals with such issues as an erosion and sedimentation control plan, storm water management plans, development density, alternative transportation access and heat and light reduction.

Water Savings Issues (5 possible points)

This topic deals with the use of water in the building and management of its wastewater. Points are awarded for the use of innovative wastewater technologies. The object is to conserve water resources.

Energy Efficiency Issues (17 possible points)

This category rewards the overall energy performance of the building and efforts to improve the electrical and mechanical systems in order to conserve energy, primarily those from non-renewable resources.

Material Selection Issues (13 possible points)

Credits are given for the reuse of existing structural elements and the maintenance of non-structural elements. Points are given when 50 percent of construction and demolition debris is recycled.

Indoor Environmental Quality (15 possible points)

This topic deals with occupant health and safety with respect to air circulation, with points also awarded based on the percentage of access to daylight. The object is to reduce indoor air quality (IAQ) issues, particularly in buildings with poor ventilation or filtration.

Five additional points can be awarded for "catch-all" provisions, i.e., whether a design innovation goes beyond LEED standards.

Voluntary Program

LEED standards are not mandatory. However, various municipal and state incentive programs have been created and state and federal tax benefits can be obtained.

Dan DiTieri is a senior manager in the Real Estate practice in BDO Seidman's New York office. He can be reached at (212) 885-8378.

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