Green Economics: Small Price for Environmental Gains

Building Operating Management, Jul 2004 by Vaciliou, Charles

For a modest first-cost premium, an EPA laboratory building went from a basic green design TO THE BEST PRACTICES EMBODIED IN LEED GOLD STATUS

As the number of buildings using green design strategies grows, so do questions about the initial cost of designing and constructing a facility with sustainable features. Green buildings have had a reputation for costing more up front, with longor short-term payback coming directly - for example, from reduced operating costs - or indirectly, from improved productivity. And some sustainable elements do carry a higher price tag, sometimes significantly higher. But first costs are far from an overwhelming obstacle to green design. Although trade-offs may be required, and some sustainable features may not be affordable, the first-cost premium can be managed.

A good example is the Environmental Protection Agency's New England Regional Laboratory (NERL), in Chelmsford, Mass. NERL is a federally leased building that houses 30 laboratories used for environmental research and testing. Construction on NERL was completed in 2001. Although the U.S. Green Building Council's LEED (Leadership in Energy and Environmental Design) rating system was only in its infancy during the building's design phase, the construction project was able to use LEED version 1.0.

LEED was formulated to encourage the development of more sustainable buildings through a universal measurement on how green a building really is. It is designed to reflect the best practices of new buildings. Owners of LEED-rated buildings can state that their properties are environmentally superior to at least 75 percent of contemporary buildings. Some LEED points can be earned quite simply, while others are more complex, requiring creative thinking and planning. The investment, value and cost of green buildings vary with each facility.

LEED is organized into five areas:

* Sustainable site planning

* Energy efficiency

* Conserving materials and resources

* Indoor environmental quality

* Water efficiency

LEED points can also be earned for design excellence. A building can be classified as certified, silver, gold, or platinum depending on the number of points earned under the rating system. The General Services Administration now requires all its new construction to seek at least LEED silver status. Other federal agencies and major corporations have also embraced LEED and sustainable design practices.

COMPARING COSTS

EPA was committed to a green building from the beginning. Building occupants, mostly scientists, were eager to participate in planning their new facility. They contributed by identifying key design features, many of which fit into LEED standards. The occupants continue to maintain conservation and recycling programs.

The total building cost for the 68,000-square-foot NERL facility was $18.5 million, or $272 per square foot. The original design used green design strategies but was not based on LEED guidelines. Compared to the cost of the original green design, the incremental cost of meeting LEED gold criteria was $264,913, or an additional $3.89 per square foot. This figure translates to a 1.4 percent increase in building costs.

The costs associated with a LEED-rated building usually are higher than a traditional building. Costs vary depending on the level of the targeted LEED goal for the project (certified, silver gold or platinum) and the specialty energy-saving items chosen for the project. To make an exact cost comparison, one would need to start out with two identical buildings and then apply green features to one and traditional features to the other. An experienced architect and construction manager can help a building owner control costs by identifying which LEED points to target - those that make most sense for an individual building.

What accounted for the incremental $264,913 LEED cost? Here's a breakdown by LEED categories.

1. Earning points for sustainable site planning cost EPA $11,200. The agency incurred costs such as landscaping for erosion control ($3,500), adding trees to exterior landscaping design to reduce heat islands ($2,000), adding bike racks for alternative transportation ($700), and installing alternate fueling facilities for electric cars ($5,000). Items that earned points, but cost nothing more than what the EPA would have spent anyway, included awarding preferred parking spaces for people who car pool, stockpiling topsoil, preserving and protecting trees during construction, and reducing habitat disturbance.

2. Enhancements under the energy efficiency category cost an additional $119,000. Awnings with integrated photovoltaics were installed on the exterior windows. At the time, the awnings were the first of their kind in the New England region. The photovoltaics collect solar power, supplying approximately 2,000 watts daily into the regional electric grid and supplementing the facility's electric power. They provide shade, reduce glare in offices, and help with heat gain and natural cooling.

Included in this category is the additional cost of purchasing six, small, modular, high-efficiency, gas-fired boilers with variable frequency drives.