Construction: Going Green
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.
What is LEED?
The acronym LEED stands for Leadership in Energy and Environmental Design.
Guidelines were first issued in 1999 by the
U.S. Green 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.
Real Estate Focus is provided by Somerset’s Real Estate Team for our clients and other interested persons upon request. Since technical information is presented in generalized fashion, no final conclusion on these topics should be made without further review. For additional information on the issues discussed, please contact Michael Fritton, CPA. Whether you are a building owner, building manager, real estate developer, real estate professional, or an investor, we hope to provide you with timely information so you may be proactive in making your business decisions.
This article was written by and published herein with the permission from professionals of BDO Seidman, LLP. Dan DiTieri is a senior manager in the Real Estate practice in BDO Seidman's New York office. Somerset is a member of the BDO Seidman Alliance, a nationwide association of independently owned accounting and consulting firms.
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P.C.
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Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
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