RENO POST OFFICEReno, NevadaIn the renovation of a U.S. Post Office in Reno, Nevada, the structure, a modern warehouse with high ceilings, was redesigned with a new ceiling sloped toenhance indirect lighting and improve acoustics. The original, harsh direct downlighting was replaced with softer, more efficient, and longer-lasting lamps. Thetotal renovation cost was $300,000. The associated annual energy savings totaled $22,400, and the projected maintenance savings, $30,000, for a combinedsavings of $52,400, which equated to a six-year payback. What the Post Office also discovered was that the renovation measures, which resulted in betterlighting and acoustics, led to a productivity increase of more than six percent. Productivity savings alone were worth $400,000 annually, returning the entirerenovation cost within the first year. 21Both building owners and building tenant/employers can benefitin other ways by improving indoor environmental quality.For owners, these improvements can result in higherproperty values (see “<strong>Building</strong> Value” section below), longertenant occupancy and lease renewals, reduced insurance andoperating costs, reduced liability risks, extended equipmentlife, and good publicity. For tenants, benefits include reducedabsenteeism and better employee morale, reduced insuranceand operating costs, reduced liability risks, and communityr e c o g n i t i o n . 2 2If the building owner is also the employer, an organization canoffset initial construction design and systems costs with thereduction of long-term organizational and operational expensesover the building’s life cycle.<strong>Building</strong> ValueGreen buildings’ high efficiency and performance can result inhigher property values and potentially lower lenders’ credit risk.Lower operating costs associated with more efficient systems canlead to higher building <strong>net</strong> income.In Figure 3 the value of a l00,000-square-foot office building increases by over $1 millionthrough implementation of green building measures. These measures, associated withenergy, water, waste, and labor, result in annual operating savings of $101,400. Theincreased building value is calculated by using a fairly conservative building market capitalizationrate—a formula used by building appraisers, brokers, and lenders to calculate abuilding’s value—of 10 percent on the savings. As illustrated in Figure 3, a building’svalue is derived by dividing its <strong>net</strong> operating income, or savings, by the market capitalizationrate.In addition to increasing a building’s <strong>net</strong> operating income or value,green building measures may allow building owners to charge higherrents or achieve higher rates of building occupancy, if tenants viewgreen properties as more desirable. Currently, voluntary building ratingprograms are under development for commercial buildings inthe United States (see Chapter 25, “The Future of Green <strong>Building</strong>”).As these programs are introduced into the marketplace and gain theacceptance of building owners and tenants, they could impact thevalue of properties. Prospective tenants will be able to rate buildingsbased on such measurable features as natural daylight, better indoorair quality, and lower energy, water, and waste costs. If enoughbuildings are rated for environmental performance, those that performbetter will start to realize market advantages.PRODUCTIVITY SAVINGSfor a Typical 100,000 sq. ft. Office <strong>Building</strong>Utility CostsAnnual Utility Cost per Square Foot $1.80Total Annual Utility Cost $180,000Personnel CostsAverage Employee Salary + Benefits $35,000Average Employee Space per Square Foot 150Estimated Number of <strong>Building</strong> Occupants 667Annual Average Personnel Cost per Square Foot $233Total Annual <strong>Building</strong> Personnel Cost $23,345,000SavingsValue of 6% Productivity Increase per Square Foot $14Ratio of Productivity Increase to Energy Cost 8 timesSource: Example from David Gottfried, “Economics ofGreen <strong>Building</strong>s,” Presentation to OG&E Electric Services,October 1995.INCREASED VALUATIONof a Typical 100,000 sq. ft. Office <strong>Building</strong>Figure 2Figure 31. Energy Retrofit Savings (50%) $90,0002. Water Savings (30%) $4,4003. Waste + Labor Savings (e.g., chute system) $7,0004. Total Annual Operating Savings $101,4005. Market Capitalization Rate 10%6. Increase in <strong>Building</strong> Value (divide 4 by 5) $1,014,000Source: Information based on discussion with CBC o m m e r c i a l ,a commercial real estate brokerage firm.PART I: ECONOMICS AND ENVIRONMENT I.9
MT. AIRY PUBLIC LIBRARYMt. Airy, North CarolinaMt. Airy, North Carolina, has incorporated extensive daylighting into the passive solar design of its 13,000-square-foot public library, built in 1982. Thisdesign strategy helps to meet the town commissioners’ goal of a 70 percent reduction in annual electricity consumption. The daylighting strategy admitsglare-free, diffuse light to all corners of the library without damaging the books with direct illumination. It is combined with efficient lighting systems, whereneeded, and other features that conserve energy used for heating and cooling. Lighting energy use, usually a large portion of a library’s total energy consumption,is now only one-eighth of the entire building’s total energy usage. Not surprisingly, utility bills have been very low. The building’s attractive designhas drawn positive reactions from employees and visitors, and made the facility a town centerpiece. Visitation rates at the library are more than twice whatwas originally anticipated, and operating hours have been extended to accommodate users of this multipurpose cultural center. 23Local Economic Development OpportunitiesPromotion and implementation of green building practices within a community cangenerate new economic development opportunities. These opportunities can take avariety of forms, including new business development to meet the demand for greenproducts and services; resource-efficiency improvement programs that enable existingb u s inesses to lower operating costs; development of environmentally oriented businessdistricts; and job training related to new green businesses and products.In Austin, Texas, the long-term existence of the city’s Green Builder Program has contributedto the growth of green building trades, including, for example, companies tomeet the demand for rainwater-harvesting systems and services. The city has also begunworking with a non-profit organization to offer at-risk youths an opportunity to learnjob skills while they build affordable green homes. On a national level, the EPA cites thepotential creation of over 200,000 jobs through aggressive implementation of its GreenLights retrofit program.In other communities, entrepreneurs have developed businesses to recycle usablebuilding components. In Baltimore, Maryland, for example, one non-profit companyredistributes over $1 million worth of building supplies a year. These materials,diverted from landfills and received as donations from construction-related businesses,are provided to non-profit organizations and low-income clients at about o<strong>net</strong>hirdof their retail price. A Berkeley, California, for-profit business has salvagedfurniture, household goods, office equipment, and building materials for resale forover a decade. These materials are retrieved from the waste stream or donated by localresidents, businesses, and construction sites. The company handles about 5,000 tonsof material each year.In Denver, Colorado, plans are underway to reuse Stapleton International Airport as acenter for environmentally oriented businesses, as well as a site for training opportunitiesin environmental fields. San Jose, California, through its Green Industry Program, hascreated two Green Industry Districts, which will provide incentives such as loans and taxbenefits to attract more recycled-product manufacturers and green industries. And inPortland, Oregon, the city’s Businesses for an Environmentally <strong>Sustainable</strong> Tomorrow(BEST) program uses incentives and education to encourage businesses to realize the economicbenefits of energy efficiency, water conservation, waste reduction or recycling,and efficient transportation practices.Local governments facing rising building and operational costs may find that adoptionof green building practices can slash public expenditures for energy, water, and wasteprocessing. In Montgomery County, Maryland, for example, carefully crafted EnergyDesign Guidelines aim to reduce energy consumption in new government buildings byI.10CHAPTER 1: THE ECONOMICS OF GREEN BUILDINGS
- Page 1 and 2: SUSTAI ABLEBUILDI GTECH ICALMA UALG
- Page 3 and 4: Ac k n ow l e d g m e n t sFunding
- Page 5 and 6: AuthorsLoren E. Abraham, AIA, IDSA,
- Page 7 and 8: Co n t e n t sAcknowledgments . . .
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- Page 43 and 44: PART IIISite Is s u e sIntroduction
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Irrigation Equipment★ S I G N I F
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Photovoltaic (PV) power is generall
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OUTDOOR LIGHTING AND ELECTRICITYMoy
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As local governments consider site
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■ Provide guidelines for building
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the collection and use of rainwater
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and global warming, by the strategi
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SECTION APa s s i ve Solar De s i g
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Passive building design starts with
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Daylighting requires the correct pl
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- Determine the optimal effective a
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controlled by the reflectivity of t
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installations require diffuse glazi
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ADVANCED LIGHT SHELFSource: Interna
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shading coefficient. A luminous eff
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8 Illuminating Engineering Society.
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Decisions about construction detail
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❑ Select the proper glazing for w
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guidelines, examples, and reference
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Thermal mass and energy storage are
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❑ Consider other cooling strategi
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Active Solar Systems★ S I G N I F
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from the storage tank, or by flushi
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P h o t ovo l t a i c s★ S I G N
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Solar Energy Research Institute. Th
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SECTION BBuildings Systems andIndoo
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After the energy crisis, design and
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❑ Optimize system efficiency.HVAC
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❑ Consider thermal energy storage
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❑ Perform a pre-occupancy flushou
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❑ Match the quality of light to t
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Renovation and Retrofit Issues❑ C
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Plumbing Systems★ S I G N I F I C
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- Energy learning centers with clas
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.N OT E SI1 Armory B. Lovins and Ro
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These organisms can affect occupant
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Design PrinciplesDesign for improve
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3. International Agency on Research
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- Clean air shafts, occupied areas
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educe the exposure of the interior
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❑ Develop and provide the buildin
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CHAPTER 14Acoustics★ S I G N I F
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RECOMMENDED DESIGN CRITERIA FOR BAC
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❑ In highly sound-sensitive areas
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CHAPTER 15BuildingCo m m i s s i o
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EXAMPLES OF SYSTEMS THAT REQUIRE CO
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the successful completion of each p
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.I➜ R E S O U R C E SIPortland En
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Much has been written and a great d
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LIFE-CYCLE OF A BUILDINGNote: See G
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BUILDING LIFE-CYCLE DIAGRAM FOR MAT
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■ The inventory of input material
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CHAPTER 16Ma t e r i a l sIntroduct
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can be extreme. However, in a hot,
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(Refer to the “Environmental Impa
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❑ Resource-efficient options- Det
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❑ Health and pollution issues- Ro
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- Some tile is available with recyc
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- One method of low-emission carpet
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- Tropical hardwoods are common in
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CHAPTER 17S p e c i f i c a t i o n
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products such as alternative agricu
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CHAPTER 18Local Gove r n m e n tI n
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Building Systems.I M P L E M E N TA
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.L O CAL OPTIONS.■ Adopt local gu
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PART VThe Co n s t r u c t i o nP r
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cost, within the tightest time-fram
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Construction-Related Indoor Air Qua
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HVAC System Practices❑ Flush out
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- Install motion sensors for securi
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CHAPTER 20Local Gove r n m e n tI n
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tractors the option of using multip
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PART VIOperations andMa i n t e n a
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CHAPTER 21Building Operationsand Ma
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. ☛ SUGGESTED PRACTICES AND CHECK
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Temperature and Humidity Control- C
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. ☛ SUGGESTED PRACTICES AND CHECK
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❑ Maximize use of daylight.❑ In
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While renovation often provides an
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tions. Will be of interest to those
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5.Develop procedures to address acc
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❑ Remove dust.Use a vacuum with h
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❑ Remove stains caused by inks, g
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sion to non-heavy-metal alternative
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➤The Environmental and Conservati
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PART VIIIssues and TrendsIntroducti
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Figure 1Front-End CostsSIMPLE CUMUL
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Table 1PAYMENT TO ENERGY PROV I D E
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A unique feature of the installatio
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Building-Rating SystemsGreen buildi
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Product CertificationSeveral entiti
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ASTM STANDARDS UNDER DEVELOPMENTLif
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The systems module simulates the op
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City of Oakland—Energy Performanc
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Studies have indicated that increas
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Appendix 1: Resources for Local Gov
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Appendix 2: Gl o s s a r yA b s o r
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Generally regarded as safe (GRAS)
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the “Primary output” of the pre
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Appendix 3: Ab b r ev i a t i o n s
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to building owners, designers, and
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Appendix 6: Rev i ewe r sLoren E. A