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| National Code Adoption Map as of November 2013. Source DOE website. |
On Jun 26, 2014 the
Idaho Chapter of the US Green Building Council hosted an event at our Boise
office titled “The Business Case for Carbon Reduction”. Local leaders from government, commerce,
industry, architecture and non-profits spoke of the pressing need to
incorporate sustainable practices into our everyday business models as well as
the planning and design of buildings and communities. To that end we are posting an article written
earlier this year that discusses incentivizing sustainable design.
A similar version
of this article first appeared in the Idaho Business Review, January 20, 2014. Look for future articles in the IBR later
this summer – Kent Hanway, AIA, CSHQA President
On Jan. 1, 2014 Idaho adopted the
2012 International Energy Conservation Code, the most current and most
stringent code applicable to renovation and new construction for commercial
construction. This brings Idaho in line with states such as Washington, Oregon,
California, Massachusetts and many others. (Although the most current we can find, the map above is a few months behind.) While energy is relatively
inexpensive in Idaho and some may ask why we are working so hard, this is a
strong move for our future to keep energy consumption and costs low.
Many people think manufacturing and
transportation are the big energy consumers and polluters. Each does its share,
with manufacturing consuming 31 percent and transportation 28 percent of U.S.
energy. The remaining 41 percent? Buildings. The energy to construct and then use the
buildings we make consumes more energy than either industry or transportation.
Buildings are also the No. 1 producer of global carbon dioxide emissions and
the amount is steadily increasing. An analogy from The Living Building
Challenge, a nonprofit promoting sustainable design, compares building a
50,000-square-foot commercial building to driving a car 20,000 miles per year –
for 730 years!
No matter your view on climate
change, we cannot continue on this trend. It simply costs too much to
build and operate inefficient buildings. The IECC is revised every three years,
and compared to 2006, the 2012 code raises energy efficiency of commercial
buildings by 30 percent. However, it is up to the states to adopt new codes, so
the federal government and many power companies employ construction-related
programs that encourage better-than-code outcomes. Often these programs are
very generous, paying for equipment and upgrades with the owner paying only for
design and installation.
Idaho Power is one of those
companies. Since 2002, Idaho Power has implemented various programs to
incentivize building owners and builders to exceed code requirements and build
greener buildings. Idaho Power currently
sponsors three commercial building programs:- Easy Upgrades offers incentives for simple retrofits within existing commercial and industrial buildings.
- Building Efficiency for Commercial Construction assists in offsetting capital expenses for efficient lighting, cooling and control systems, as well as better-built building shells for new or renovated commercial and industrial construction.
- Custom Efficiency for Complex Projects addresses large commercial and industrial users that improve their electrical systems or processes.
Our experience with both programs has
saved our clients and ourselves money.
However, as we see in the federal program, incentives are not guaranteed
into the future. With more stringent
codes, many incentive programs are less cost effective or even redundant. Power companies will not incentivize
customers for merely reaching code.
Yet, there is a silver lining going
forward. Regardless of the duration of these and other programs, savvy
developers and investors already know something very important about building
green: It saves money and increases property values.
The
simple payback from many energy efficiency measures is estimated at five to
seven years. Green buildings are less expensive to operate, raising return on
investment compared to comparable leased space. Green buildings are also
perceived to have greater value in the market. In five different studies from
2009 to 2011 in 12 urban U.S. markets, some including Boise, green buildings
experienced higher rents, fewer vacancies and faster absorption. Sales of green
buildings experienced shorter durations and higher net prices.
Karen
Warner, president of Tenant Realty Advisors in Boise, sums it up: “The demand for green office buildings will
continue to increase as more and more national firms recognize the benefits of
leasing sustainable office space. Not only does it make economic sense, but
green buildings also have a positive influence on employee retention and
productivity.”
The
financial incentives of grants, rebates and deductions may be vanishing, but
the real money in green building remains.
–
Kent
Hanway is a licensed architect and president of CSHQA, a Boise-based, 90-person
architectural and engineering firm. He is a member of the Idaho Power Energy
Efficiency Advisory Group, the Urban Land Institute and the American Institute
of Architects.
