A REPORT BY THE OFFICE OF THE

BRONX BOROUGH PRESIDENT

Its Not Easy Being Green:

How to achieve pro-growth and pro-environment policies by encouraging the production of green construction materials by the N ! manufacturing industry

Bronx Borough President Ado !o C"rri#n$ %r No&e'(er )**+

INDEX
Exe,uti&e Su''"rIntrodu,tion Bene!its o! Green Bui ding A0 Energ- E!!i,ien,B0 Bene!its !or Peo1 e C0 S,hoo s D0 O!!i,e Bui dings NYC "nd Bronx 3"nu!",tures A0 Ne5 Yor6 CitB0 Bronx C0 Ex"'1 es o! Bronx Green 3"nu!",tures Con,erns A0 Addressing the Pri,e Di!!eren,e B0 De" ing 5ith the High Costs o! Ne5 E9ui1'ent "nd E'1 o-ees C0 Pro&iding A,,ess to Fin"n,i" Progr"'s Existing Go&ern'ent E!!orts A0 Ne5 Yor6 CitB0 Ne5 Yor6 St"te Re,o''ended Pro1os" s Green 3"nu!",turing S" es T"x Exe'1tion Green 3"nu!",turing T"x Credit Green 3"nu!",turing Edu,"tion" Resour,e Initi"ti&e Green 3"nu!",turing A,,essi( e Progr"'s Initi"ti&e Con, usion A,6no5 edg'ents . / + + + 2 2 4 4 7 7 8* 8* 8* 88 88 88 8) 8. 8. 8. 8. 8: 8: 8/

EXECUTI;E SU33ARY Its Not Easy Being Green: How to achieve pro-growth and pro-environment policies by encouraging the production of green construction materials by the N ! manufacturing industry"# was prepared by Bronx Borough President Adolfo Carrion, Jr. to encourage the New or! City "anufacturing industry to beco"e "ore green# by "a!ing safer, healthier, and en$iron"entally responsible building products for de$elopers. %his report is a study about ways to increase green "anufacturing# and green building.# &reen "anufacturing# describes a "eans of "anufacturing that di"inishes waste and pollution through a special process of designing a product that is less har"ful to the en$iron"ent. &reen building# refers to increasing the efficiency with which buildings use energy, water, and "aterials,# and, reducing building i"pacts on hu"an health and the en$iron"ent through better design, construction, operation, "aintenance# of buildings.' $Its Not Easy Being Green"# begins by detailing efforts currently being done by the Borough President to encourage "ore green buildings and the "ain proble"s that exists to pre$ent greater nu"bers of green building. Afterwards, it outlines the benefits of green building and green "anufacturing( and assesses the current conditions of the building) related "anufacturing industry in New or! City. Next, two green "anufacturers in the Bronx are exa"ined( concerns raised by de$elopers and "anufacturers about green construction "aterials are addressed( and existing efforts to help "anufacturers and de$elopers beco"e "ore en$iron"entally responsible are analy*ed. +inally, the report reco""ends proposals to pro$ide "ore resources, reduce costs and ser$e as incenti$es for de$elopers to buy green construction "aterials and for "anufacturers to "a!e green construction "aterials. &reen construction "aterials# are en$iron"entally friendly goods that are beneficial to the building occupants and "anage"ent i""ediately or o$er the life of the building. As a result, they are resource efficient, and ha$e far)reaching global i"pacts. ,n$iron"entally responsible products fall under a nu"ber of categories such as engineered woods, paints, construction adhesi$es, carpets, architectural sealants, and furniture.2 Bene!its o! Green Bui ding O&er" e,ono'i, (ene!it< A -. in$est"ent /per s0uare foot1 in building green nets -.2 dollars in health and producti$ity benefits, -3.45 in operation and "aintenance costs, -4.35 in energy sa$ing, -'.25 in e""issions sa$ings,

'

%he +ederal Co""it"ent to &reen Building6 ,xperiences and ,xpectations. 7ffice of the +ederal ,n$iron"ental ,xecuti$e. 2552. 2. 7ctober 2552. 8http699www.ofee.go$9sb9fgb:report.ht"l;. 2 http699www.nyc.go$9ht"l9ddc9ht"l9ddcgreen9docu"ents9guidelines9greeng5<.pdf, accessed 7ctober =5, 2552

and -5.45 in water sa$ings /per s0. ft.1 totaling -43 /per s0uare foot1 o$er 25 years. = Energ- s"&ings< 7$er 25 years, green buildings pro$ide a net benefit of between -45)-24 per s0uare foot. Co""ercial buildings e"ploying green building "aterials see an a$erage reduction in energy use exceeding =5>.. Better he" th< ?igher en$iron"ental standards in $entilation syste"s ha$e resulted i"pro$ed air 0uality that caused an 3=> decrease in flu sy"pto"s, a 2=> decrease in sic! building syndro"e, and a <2.4 > decrease in asth"a sy"pto"s for e"ployees4

Potenti" I'1",t o! Bronx Bui ding= Re "ted 3"nu!",turers >"rge Nu'(er o! Bronx Bui ding=re "ted 3"nu!",turers< '3= building) related "anufacturers in the Bronx, co"prising .2> of Bronx "anufacturers. %hey e"ploy approxi"ately .,.@3 people, contributing -'@< "illion in wage inco"e to the Bronx econo"y Bi ions in S" es< Atili*ing an esti"ated 4.4 "illion of s0uare feet of space, these Bronx building)related "anufacturers generate -2.=2 billion in a$erage annual sales2. %he a$erage Bronx fir" has 25,555 s0uare feet of space, with a$erage annual sales of -= "illion.<

As " !o o5=u1 to this re1ort$ 5e 1 "n to 1"rtner 5ith e,ono'i, "nd en&iron'ent" org"ni?"tion to "n" -?e the !e"si(i it- o! the !o o5ing re,o''end"tions< Green 3"nu!",turing S" es T"x Exe'1tion= Bn$estigate possible legislation to create a green sales tax exe"ption( de$elopers purchasing these "aterials would not ha$e to pay sales tax, si"ilar to what is done with the clothing sales tax exe"ption in New or! City. Green 3"nu!",turing T"x Credit= Bn$estigate possible legislation for the creation of a green "anufacturing tax credit( analy*ing the possibility pro$iding for tax credits up to 2@> for green "anufacturing businesses located in the ,"pire Cones that create new Dobs and "a!e new in$est"ents in production, property and e0uip"ent. Green 3"nu!",turers Edu,"tion" Resour,e Initi"ti&e = Arges initiati$es to pro$ide practical "ethods to /'1 properly "ar!eting these incenti$es

=
.

&reen Building by the Nu"bers. 7ctober =5,2552. 8http699www.usgbc.org9EisplayPage.aspxFCGHPageBEI'..2;. &reg Jats, ,cono"ic Costs and Benefits of &reen Building, June 2554 4 Carnegie Gellon Ani$ersity for Building Perfor"ance. 7ctober =5, 2552. 8http699www.cap).co"9ewebeditpro9ite"s954@+<<5<.pdf;. 2 Keference AHA. 2552. 7ctober 2552. 8www.referenceusa.co"9;. < Bbid, Keference AHA

directly to the "anufacturers and /21 to create a resource in a readily accessible "ediu" that pro$ides infor"ation of city and state incenti$es. Green 3"nu!",turers A,,essi( e Progr"'s Initi"ti&e @ Keco""ends initiati$es to create strea"lined application processes and tailored ser$ices to s"aller fir"s that would help co"panies access these progra"s and benefit fro" the go$ern"entLs in$est"ent.

INTRODUCTION Mhile real estate de$elop"ent has slowed in parts of New or! City, Bronx de$elop"ent continues to grow at a record pace. %he groundbrea!ing for the new an!ee Htadiu", the &ateway Center at Bronx %er"inal Gar!et, and the ?ub Ketail and Office Center exe"plifies the unprecedented rebuilding of the Bronx. Bt is esti"ated that -=.4 billion will be in$ested in the Bronx in the next fi$e years. 3 Hignificantly, this new de$elop"ent presents a historic opportunity for the Bronx to ta!e the lead in being both pro)growth and pro) en$iron"ent. Bn an effort to sei*e this historic opportunity, Borough President has sought to "a!e sure that new construction in the Bronx is done in a way that is en$iron"entally responsible. %he Borough President has pro$ided nearly -< "illion in recent years in funds for the construction of 3 green buildings with se$eral hundred housing units( including the Gount ?ope Co""unity Center, the New ?ope building, the %",o(As P ",e (ui ding$ the O d >ong5ood PA> (ui ding$ the South Bronx Co''unit- Cor1B Henior Building, the New Eestiny Eo"estic Niolence Kesidence$ and the Arban ?ori*ons BB buildings.@ Additionally, the Borough President has urged the green reno$ation of buildings. Just last "onth, he un$eiled a green roof on the Bronx County Courthouse building. %his green roof reduces air pollution, conser$es energy, re0uires little "aintenance and extends the roofLs lifespan.'5 %he Borough President has also established the Bronx Initiative for Energy and the Environment
to provide low interest loans and grants to Bronx building owners to use energy efficient measures in their properties; including green roofs, boiler retrofits, free energy surveys (Audits), weatheri ation technology, lighting upgrades and solar!wind technology"

%o increase the nu"ber of green buildings e$en "ore, these following challenges "ust be addressed6 reducing the costs of green products for de$elopers and "anufacturers( "ini"i*ing the high in$est"ent and e"ployee costs of going green for "anufacturers( educating "anufacturers about financial assistance progra"s that can reduce their costs( and si"plifying the processes for financial assistance progra"s.
3 @

+ernande*, %o""y. Boo" Cheers Houth Bronx.# Crains New or! Business, '2 7ctober 2552. Kouse, Ja"es O Eirector of ?ousing for the 7ffice of the Bronx Borough President. %elephone Bnter$iew. 7ctober 2552. '5 7ffice of the Bronx Borough President. %he Bronx Ga!es ,ntire City &reen Mith ,n$y.# Press Kelease6 Hepte"ber '@, 2552.

BENEFITS OF GREEN BUI>DING %he o$erall AH green building "aterials "ar!et was -2'.' billion in 2554 and will increase to -2'.@ billion by the end of 2552 and -2<.@ billion by 25''. %here will be an a$erage annual growth rate of ..@> o$er the next fi$e years.'' Energ- E!!i,ien,-6 Mhile green building "ay be "ore costly up front to build, financial sa$ings can be significant o$er ti"e. Co""ercial green buildings benefit significantly fro" energy sa$ings. 7$er 25 years, green buildings pro$ide a net benefit of between -45)-24 per s0uare foot. Co""ercial buildings that use green building "aterials see an a$erage reduction in energy use exceeding =5>.'2 A -. in$est"ent /per s0uare foot1 nets -.2 dollars in health and producti$ity benefits, -3.45 in operation and "aintenance costs, -4.35 in energy sa$ing, -'.25 in e""issions sa$ings, and -5.45 in water sa$ings /per s0. ft.1 totaling -43 /per s0uare foot1 o$er 25 years. '= %hese sa$ings are often achie$ed through better heating syste"s, better lighting syste"s, better weatheri*ation, and the use of solar9 wind technology. &reen roofs are an excellent exa"ple of energy sa$ings benefits in green de$elop"ent. Mhile a green roof costs about twice what a regular roof costs, it results in a =5> reduction in energy use for the floor and a '5)'4> reduction for the entire building. &reen roofs also absorb 45)35> of stor" water( the roof absorbs water for its own needs, while gradually draining off the excess. &reen roofs also filter the air, lowering a"bient air te"perature. ProDections ha$e shown that if 2> of urban rooftops were co$ered with green roofs, the urban heat island effect could be lowered by 4)'5>. %he urban heat island effect refers to 2)'5 degree bubble of war"th experienced by "etropolitan areas( this heat island can boost rainfall by 23> to areas 25).5 "iles downwind of the urban area.'. Bene!its !or Peo1 e &reen products ha$e been used in the construction of "any types of structures, including schools and office buildings. Bn addition to the en$iron"ental benefits, green building techni0ues create a healthier, "ore pleasant indoor en$iron"ent that leads to i"pro$ed hu"an perfor"ance. Htudies show significant positi$e effects of green building on health, wor!er producti$ity, and student perfor"ance.

''

BCC Kesearch, %he AH Gar!et for P&reenL Building Gaterials# /Hept ', 25521 8 http699"ar!etresearch.co"9product9display.aspFproductidI'=4..<2QgI'; '2 &reg Jats, ,cono"ic Costs and Benefits of &reen Building, June 2554
'=
'.

&reen Building by the Nu"bers. 7ctober =5,2552. 8http699www.usgbc.org9EisplayPage.aspxFCGHPageBEI'..2;. http699en.wi!ipedia.org9wi!i9Arban:heat:island accessed 7ctober 2552

S,hoo s A "ain focus of green building in schools is on daylighting. %his process increases the nu"ber and si*e of classroo" windows and s!ylights in order to "axi"i*e the a"ount of daylight filling the classroo"s. Htudies indicate higher test scores and faster learning rates in schools that use this green building techni0ue rather than in schools built with standard construction "ethods. o Bn the Capistrano Anified Hchool Eistrict of 7range County, California, students placed in classroo"s with the "ost daylight showed an increase of up to 22> in their rate of learning('4 o Bn the Poudre Hchool Eistrict of +ort Collins, Colorado, student tests scores i"pro$ed by '3> when placed in classroo"s with the largest window areas('2 o Htudents in the Heattle Public Hchool Eistrict of Heattle, Mashington in classroo"s with the "ost daylight scored up to '4> higher on standardi*ed tests than those with the least a"ount of daylight.'< O!!i,e Bui dings &reen building in offices i"pro$es the health and perfor"ance of wor!ers by creating a superior wor!ing en$iron"ent, which in turn raises producti$ity. +ir"s that in$est in lighting and indoor air 0uality i"pro$e"ents enDoy a happier, healthier, and "ore producti$e wor! force. %hese green building techni0ues can also be applied to retail stores, which experience the econo"ic benefit of a "ore pleasant en$iron"ent for their custo"ers. &reen building produces hu"an benefits for both healthier wor!ers and happier shoppers. Businesses typically achie$e energy sa$ings in $arious ways. ,nergy costs can be contained by installing energy "anage"ent syste"s, occupancy sensors, progra""able ther"ostats, and special energy)efficient lighting. +urther reductions can be achie$ed through the use of ,nergy Htar co"puters, printers, copiers and other office e0uip"ent.'3 %he econo"ic benefits of green building include lower health care and lost wor! costs and increased retail sales. ,xa"ples are listed as follows6 o Bn Heattle, the Mest Bend Gutual Bnsurance ?ead0uarters found a '2> increase in wor!er producti$ity after installing personal te"perature and lighting control syste"s at each wor!station.'@ o Bn a California study of '53 stores, stores that increased daylighting with s!ylights had .5> higher sales than stores without s!ylights.25
'4

Eaylighting in Hchools. Pacific &as and ,lectric. ?eschong Gahone &roup, '@@@. 2. 7ctober 2552 8http699www.pge.co"955=:sa$e:energy955=c:edu:train9pec9daylight9daylight.sht"l;. '2 Bbid, Eaylighting in Hchools '< Bbid, Eaylighting in Hchools '3 http699tinyurl.co"9<.!g3 accessed 7ctober 2552 '@ Case Htudy. Johnson Controls. 2. 7ctober 2552. 8http699www.Dohnsoncontrols.co"9C&)Cases9cs:MestBend.pdf;. 25 Hustainability. City of Heattle. 2. 7ctober 2552. 8http699www.seattle.go$9light9conser$e9sustainability9studies9c$4:sb.ht";.

<

o Bn a case study of the Bnternational Netherlands &roup Ban!Rs 4.5,555)s0uare) foot head0uarters in A"sterda", researchers found that solar heating and $entilation, cogeneration and waste heat capture, day lit office space and interior cores, and water)efficient landscaping reduced e"ployee absenteeis" by '4>.2' o Kesearch co"piled by Carnegie Gellon for Building Perfor"ance found that i"pro$ed air 0uality fro" S,,E certified $entilation syste"s resulted in an 3=> decrease in flu sy"pto"s, a 2=> decrease in sic! building syndro"e, and a <2.4 > decrease in asth"a sy"pto"s for e"ployees 22 NYC C BRONX 3ANUFACTURERS Bn order to address to feasibility of this reportLs proposals, it is critical to understand how the industry of building- related manufacturers works in New York City. Currently, only a handful of manufacturers make green products. However, as green development becomes more prevalent, it is critically that we increase the numbers of green manufacturers in New York City. Ne5 Yor6 Cit%here are <,..4 "anufacturing fir"s in New or! City and they e"ploy ''3,255 e"ployees, "ore than sectors such as real estate, transportation warehousing, securities and co""odity contracts and construction.2= New or! City "anufacturers are predo"inantly located in Ganhattan, followed by Tueens and Broo!lyn. %he sector is co"posed "ostly of s"all businesses. %he $ast "aDority of New or! City "anufacturers, 3.>, e"ploy less than twenty)fi$e e"ployees.2. %hough the largest fir"s are capable of generating annual sales in the tens of "illion of dollars, only 2> of fir"s e"ploy "ore than 45 people.24 ',<55 New or! City fir"s, or 24> of the cityLs entire "anufacturing sector, "anufacture a building)related product. %he cityLs "anufacturing base pro$ides a range of products for use in the construction industry. Ganufacturers produce e$erything fro" glass to floor tiles to furniture.22 A sur$ey of N C "anufacturers showed that the top 4 products "anufactured in N C are "etal fabrication /'51, interior furnishings /@1, woodwor!ing /21, signs /.1, and lighting /.1.2<

2'

&reener Buildings. 7ctober =5,2552. 8http699www.greenerbuildings.co"9bac!grounders:detail.cf"FAseJeywordIArchitecture >25>22>25Eesign;. 22 Carnegie Gellon Ani$ersity for Building Perfor"ance. 7ctober =5, 2552. 8http699www.cap).co"9ewebeditpro9ite"s954@+<<5<.pdf;. 2= About N C Ganufacturing.# Gade in N C. June 255.. 2. 7ctober 2552. 2. 8www."adeinnyc.org9aboutnyc.cf";. Htate of New or! and the A.H. Bureau of Sabor Htatistics. Tuarterly Census of ,"ploy"ent and Mages. 2554. 7ctober 2552. 24 Bbid, Htate of New or! and the A.H. Bureau of Sabor Htatistics 22 Ganufacturing &reen6 Producing a Hustainable New or!. New or! Bndustrial Ketention Networ!. Bndustrial Q %echnological Assistance Corporation. June 2552. 2< Bbid, New or! Bndustrial Ketention Networ! and Bndustrial Q %echnological Assistance Corporation

New or! City "anufacturers ha$e stated that <'> of their custo"ers are either $ery interested# or so"ewhat interested# in green building "aterials.23 Hince @3> of sur$ey respondents "a!e custo" products, they are "ore capable of introducing new products, li!e green products.2@ 3=> of respondents stated they already produce a product with at least one positi$e en$iron"ental feature#.=5 Bronx .=' Bronx "anufacturing fir"s e"ploy @,5<' people, paying significantly "ore than "any of their colleagues in all the other boroughs( the a$erage "anufacturer in the Bronx "a!es -.=,555, a full -'2,555 "ore than his9her counterparts in the other boroughs.=' Ganufacturers producing building)related "aterials account for '3= fir"s in the Bronx, co"prising .2> of Bronx "anufacturers. %hey e"ploy approxi"ately .,.@3 people, contributing -'@< "illion in wage inco"e to the Bronx econo"y. %he '54 Getal, che"ical and plastic fir"s account for al"ost =,'55 Dobs, with another <55 e"anating fro" the .< fir"s responsible for wood and furniture "anufacturing.=2 %he re"aining Dobs co"e fro" =' fir"s "anufacturing electrical parts, "inerals and leather. Building) related "anufacturers in the Bronx co"e in a "ultitude of shapes and si*es, but their collecti$e i"pact is undeniable. Atili*ing an esti"ated 4.4 "illion of s0uare feet of space, these "anufacturers generate -2.='3 billion in a$erage annual sales==. %he a$erage fir" has 25,555 s0uare feet of space, with a$erage annual sales of -2.<4 "illion.=. %he high end of the "ar!et is concentrated pri"arily around fi$e fir"s. %hese fir"s generate o$er -=45 "illion in sales and are located in a$erage spaces exceeding 45,555 s0uare feet.=4 %he Bronx "anufacturing sector is pri"arily centered near Port Gorris and ?unts Point. %he e"ployees of "anufacturers are predo"inantly "inorities( 45> are Satino, and '4> are Blac!.=2 7f the ',.54 "anufacturing wor!ers li$ing within a half)"ile of Port Gorris, 43> are Satino.=< EXA3P>ES OF BRONX GREEN 3ANUFACTURING FIR3S Giller9Bla!er is located in the Port Gorris area and builds highly custo"i*ed, green woodwor! products( including cabinets, lobbies, and other detailed woodwor! ite"s. Gost recently, they co"pleted an -3 "illion proDect on the ?earst Building( other proDects ha$e included the restoration of Central Hynagogue and wor! on Colu"bia
23 2@

Bbid, New or! Bndustrial Ketention Networ! and Bndustrial Q %echnological Assistance Corporatio Bbid, New or! Bndustrial Ketention Networ! and Bndustrial Q %echnological Assistance Corporatio =5 Bbid, New or! Bndustrial Ketention Networ! and Bndustrial Q %echnological Assistance Corporatio =' Bbid, New or! Bndustrial Ketention Networ! and Bndustrial Q %echnological Assistance Corporatio =2 Htate of New or! and the A.H. Bureau of Sabor Htatistics. Tuarterly Census of ,"ploy"ent and Mages. 2554. 7ctober 2552. == Keference AHA. 2552. 7ctober 2552. 8www.referenceusa.co"9;. =. Bbid, Keference AHA =4 Bbid =2 Census 2555. %ransportation Planning Pac!age, Nia Eepart"ent of City Planning. 7ctober 2552. =< Bbid, Census 2555

Ani$ersityLs PresidentLs house. Annual business exceeds -24 "illion, which is 0uite large for the green field. %he production shop e"ploys about '55 people, with thirty ad"inistrati$e staffers in the office.=3 Giller9Bla!er entered the green field as a result of identifying a rising de"and for green products. %o build !nowledge of their products, they offer architects se"inars on building green.=@ 7n a s"aller scale, ?endric!son Custo" Cabinetry, is located in the Gott ?a$en and focuses pri"arily on green reno$ations. %hey offer de$elopers, architects and contractors the option to "a!e their buildings en$iron"entally friendly. ?endric!son has grown fro" four e"ployees to fourteen( by the end of the year, they expect to hire an additional three wor!ers. All of their e"ployees are Bronx residents and their co"panyLs re$enue has tripled in the past three years..5 CONCERNS According to a recent sur$ey, al"ost a third of New or! "anufacturers /2@>1 stated that costs and financing were a challenge when introducing new green products, and .2> said they were interested in financial incenti$es..' Ganufacturers in New or! City face a nu"ber of challenges that li"it their ability to generate green)friendly products. %hese following challenges "ust be addressed6 reducing the costs of green products for de$elopers and "anufacturers( "ini"i*ing the high in$est"ent and e"ployee costs of going green for "anufacturers( educating "anufacturers about financial assistance progra"s that can reduce their costs( and si"plifying the processes for financial assistance progra"s. Addressing the Pri,e Di!!eren,e &reen building products often cost "ore to buy and "a!e than regular products. As a result, green "anufacturers are faced with the dile""a whether de$elopers will buy their products. .2 +or exa"ple, water)based polyurethane, which e"its fewer fu"es when coating wood floors, can cost up to -24. Bn contrast, the oil)based polyurethane costs only -=4..= A study of a green building built by the Battery Par! City Authority found that green products were 2.4>)@> "ore expensi$e per s0uare foot than typical residential construction... &i$en this price difference for green products, it is critical that de$elopers be gi$en financial incenti$es to purchase green products. De" ing 5ith the High Costs o! Ne5 E9ui1'ent "nd E'1 o-ees

=3 =@

Bnter$iew with &ene GcCaffrey, Giller9 Bla!er, 7ctober '2, 2552 Bbid, &ene GcCaffrey .5 Bbid, &ene GcCaffrey .' Bbid, New or! Bndustrial Ketention Networ! and Bndustrial Q %echnological Assistance Corporation
.2
.=

Bbid, New or! Bndustrial Ketention Networ! and Bndustrial Q %echnological Assistance Corporation Bnter$iew with Paul No$ac!, ,n$iron"ental Construction 7utfitters of New or!, 7ctober 2=, 2552 http699en$iro$aluation.org9index.phpF"I255.5', accessed 7ctober =', 2552

..

'5

Ganufacturers struggle to tap into the green "ar!ets with new products without disrupting existing business operations..4 Before entering the green "ar!et, "anufacturers need do extensi$e research and de$elop"ent, followed by significant in$est"ents in e0uip"ent and staff to operate the new "achinery. Gany "anufacturers lac! the financial resources pay for these in$est"ents..2 Ganufacturers need "ore financial assistance to create an infrastructure that supports inno$ation and rapid change to "eet custo"er de"ands for green products..< Pro&iding A,,ess to Fin"n,i" Progr"'s Gost building) related "anufacturers in New or! City are s"all co"panies. As a result, they often lac! highly de$eloped accounting syste"s or accounting staff who $iew the responsibilities beyond basic boo!!eeping purposes. 3.> of all New or! City "anufacturing fir"s e"ploy less than 24 people and conse0uently are unable to pro$ide the necessary hu"an capital to co"petently search currently a$ailable go$ern"ent financial assistance progra"s through New or! City and New or! Htate.3. Mhile there are consultants or outside accountants that speciali*e in helping co"panies access these progra"s, co"panies often ti"es canLt afford the". As would be expected, "any "anufacturers arenRt able to apply for these financial assistance progra"s for which they "ay or "ay not be eligible. %he application process presents another obstacle. Bt beco"es too ti"e consu"ing and ulti"ately unappealing to co"panies. A growing necessity for de$elopers is for research and de$elop"ent assistance to educate the" and enable the" to experi"ent with new "aterials.#.@ %hese s"all "anufacturers need easier access to financial assistance. %hese deterrents push "anufacturers away fro" producing green and affect the rest of the green "ar!et. Mith less green "anufacturing, fewer construction and reno$ation proDects can incorporate green products. EXISTING GO;ERN3ENT EFFORTS Both New or! Htate and New or! City ha$e ta!en efforts to encourage "anufacturers to produce green)friendly goods. %he New or! City Council allocated -2.2,555 in the last budget to support two green initiati$es. -'45,555 was ear"ar!ed to pro$ide "anufacturing fir"s assistance with "ar!eting, technology and wor!force training. -@2,555 was also allocated towards pro"oting the green "anufacturing industry.

.4

Bbid, New or! Bndustrial Ketention Networ! and Bndustrial Q %echnological Assistance Corporation Bbid, New or! Bndustrial Ketention Networ! and Bndustrial Q %echnological Assistance Corporation

.2
.< .3

Bbid, New or! Bndustrial Ketention Networ! and Bndustrial Q %echnological Assistance Corporation Bbid, New or! Bndustrial Ketention Networ! and Bndustrial and %echnology Assistance Corporation .@ Bbid, New or! Bndustrial Ketention Networ! and Bndustrial Q %echnological Assistance Corporation

''

%he Council also passed Socal Saw 32 to ta!e effect on January ', 255<, re0uiring all buildings with construction costs exceeding -2 "illion dollars in city funding to incorporate green "aterials into their design.45 %his law re0uires any new construction or "aDor rehabilitation on an existing building to achie$e a special le$el of en$iron"ental ran!ing. 4' +or proDects exceeding -'2 "illion or "ore but less than -=5 "illion, the proDect "ust be designed and constructed to reduce energy by a "ini"u" of 25>( the successful execution of these proDects is o$erseen by the Eepart"ent of Eesign and Construction.42 %he New or! City Eepart"ent of Eesign and Construction has an annual construction budget of -' billion. Created in '@@4 by Socal Saw <<, EEC "anages "uch of the cityRs capital construction, which includes police and fire stations, cultural institutions and libraries, courts and correctional facilities. Bn '@@<, EEC established the 7ffice of Hustainable Eesign to identify and i"ple"ent cost)effecti$e ways to enhance EECLs green practices.4= %his Hepte"ber, Gayor Bloo"berg announced the creation of the 7ffice of Song)%er" Planning and Hustainability. %his new office will6 underta!e an in$entory of greenhouse gas e"issions for the city, establish a sustainability ad$isory board, and establish a partnership with Colu"biaLs ,arth Bnstitute.4. 7n a state le$el, "any legislati$e ideas to address green building and "anufacturing ha$e been introduced and passed. Bn '@<4 the New or! Htate Segislature created the New or! Htate ,nergy Kesearch and Ee$elop"ent Authority /N H,KEA1 to help create econo"ically beneficial and en$iron"entally friendly progra"s. 7ut of this corporation ca"e its ,nergy ,fficiency Her$ices Progra". %his progra" wor!s with o$er 4oo businesses, schools, and "unicipalities to identify existing technologies and e0uip"ent to reduce their energy costs. 44 %he ,nergy ,fficiency Her$ice Progra" offers financial and technical assistance to businesses, "unicipalities, and residents who use green "ethods and "aterials. %his progra" also creates a syste" of tax credits and initiati$es through %he New or! ,nergy -"art Soan +und progra".42 %he state has also created the &reen Building %ax Credit, a$ailable to those who build with en$iron"entally sound "aterials and "eet certain energy goals. -<.45 per s0uare foot "ay be clai"ed for exterior wor! against their state taxes, with an additional clai" of -=.45 per s0uare foot for interior wor!. %o 0ualify, the builder "ust be certified by a licensed architect or engineer, and "eet the specific building re0uire"ents such as "aterial selections that are being used, waste disposal and water use, indoor air 0uality, and re0uire"ents for energy use.
45

New or! City Eepart"ent of Eesign Q Construction. Socal Saw 3292554 Kesources. 7ctober 2552. 8http699www.nyc.go$9ht"l9ddc9ht"l9ddcgreen9ll32.ht"l;. 4' Bbid, N C Eepart"ent of Eesign Q Construction 42=@ Bbid, N C Eepart"ent of Eesign Q Construction 4= Saurie Jerr, N C EEC, New or! City &reen Building Progra"s# 4. http699tinyurl.co"9r=to. accessed 7ctober 2552 44 New or! Htate ,nergy Kesearch and Ee$elop"ent Authority. &reen Building Her$ices. 7ctober 2552. 8http699www.nyserda.org9progra"s9green:buildings9;. 42 Bbid, New or! Htate ,nergy Kesearch and Ee$elop"ent Authority

'2

RECO33ENDED PROPOSA>S< Hur$eys ha$e indicated that al"ost all "anufacturers will "a!e green products, if gi$en enough incenti$e and assistance. %he 0uestion is whether how "any of the" would be willing to "a!e a co""it"ent to change, re0uiring ti"e and in$est"ent and learning new things. %hese factors, of course, depend on the "ar!et de"and and the a"ount of assistance a$ailable to the". Borough resident proposes partnering with econo"ic and en$iron"ental organi*ations to analy*e the feasibility of increasing "ar!et de"and and educational assistance for "anufacturers. %he proposed study, should include, but li"ited to following initiati$es. Green 3"nu!",turing S" es T"x Exe'1tion= Ee$elopers purchasing these "aterials would not ha$e to pay sales tax, si"ilar to what is done with the clothing sales tax exe"ption in New or! City. %he possible benefit of the sales tax exe"ption is that a de$eloper would buy green ite"s fro" a local "anufacturer, because the product is cost co"petiti$e and local, both of which are desirable features. Green 3"nu!",turing T"x Credit= %his proposal would pro$ide for tax credits up to 2@> for green "anufacturing businesses that create new Dobs and "a!e new in$est"ents in production, property and e0uip"ent. Bn Khode Bsland, a si"ilar tax credit for in$est"ent in co""ercial property businesses, esti"ated at -'.4..< "illion, generated a total of -<@4.24 "illion in econo"ic acti$ity. %hey found that each -' of state tax credit in$est"ent is le$eraging -4..< in total econo"ic output. Additionally, the progra" generated -'<@.. "illion in additional property tax re$enue and -.2.'. "illion in sales and inco"e tax re$enue.4< Green 3"nu!",turing Edu,"tion" Resour,e Initi"ti&e= %his report reco""ends adopting initiati$es to address these issues by /'1 properly "ar!eting these incenti$es directly to the "anufacturers and /21 creating a resource in a readily accessible "ediu" that pro$ides infor"ation about financial incenti$es. %his first "ethod can be acco"plished through UsponsorU tables at e$ents held by the local econo"ic de$elop"ent organi*ations, since they are doing outreach to "anufacturers on a regular basis anyway. %he creation of an online database could acco"plish the second "ethod. %he database could be organi*ed so that co"panies can easily trac! incenti$es specific to their proDects. Bt would be categori*ed according to the si*e of the proDect, its location, and its purpose. Green 3"nu!",turing A,,esi( e Progr"'s Initi"ti&e = %his report urges initiati$es to pro$ide clearer guidelines with strea"lined application processes that are tailored to s"aller fir"s will help co"panies access these progra"s and benefit fro" the go$ern"entLs in$est"ent. 7ne reco""ended way is to

4<

http699www.grows"artri.co"9tax.ht"l, accessed 7ctober =', 2552

'=

strea"line the application process is $ia new technology li!e the Adobe SifeCycle progra". Bt can accelerate the process of sub"itting application for"s by up to 45> while increasing producti$ity without ha$ing to add any additional staff43. %his can lead to an expedited application process for those applying for financial incenti$es4@. %hose pursuing financial incenti$es would be able to co"plete PE+ for"s online and then e"ail the for"s to cowor!ers for additional input25. Another "ethod in strea"lining the application process could in$ol$e differentiating the re$iew procedure for s"all and large proDects. H"all, and only s"all, proDects could be self)certified so that resources can be directed to larger proDects2'. Certification for large building proDects usually ta!es 2 years or "ore to beco"e certified22. Allocated "ore resources fro" s"all proDects to large)scale proDects would expedite the process2=. CONC>USION %he story of the Bronx is changing. 7ut of the tough ti"es of the pre$ious decades the Bronx has e"erged as the 0uintessential all)A"erican co"ebac! story. %oday, %he Bronx and its econo"y is truly boo"ing. 7$er the next fi$e years, it is esti"ated that o$er -=.4 billion will be in$ested in both large and s"all de$elop"ent proDects.2. %here is now uni0ue opportunity to "erge econo"ic growth with en$iron"entally friendly building practices. Me "ust "a!e green de$elop"ent not only good for the en$iron"ent, but good for the wallet. Me can no longer ignore the responsibility of pursuing en$iron"entally sustainable de$elop"ent. As we continue to grow our cities, we "ust understand that econo"ic $iability and en$iron"entally friendly are not "utual exclusi$e. Me "ust create a set of conditions in which future generations will enDoy cities that are both econo"ically strong and en$iron"entally sound. Anderstandably, it is not easy being green, but in todayLs world it is necessary.

43

Adobe, Adobe Case Htudy6 A.H. &reen Building Council# /25521 8http699www.adobe.co"9cfusion9showcase9index.cf"F e$entIcasestudydetailQcasestudyidI'5''<3QlocIen:us; 4@ Bbid. 25 Bbid. 2' New or! City Chapter ?ousing %as! +orce, %en Hteps to Create Gore Affordable ?ousing in New or! City# A"erican Bnstitute of Architects /255=1 8http699aiany.org9co""ittees9?ousing9Htate"ents9housingcode.pdf; 22 Bbid. 2= Bbid. 2. Bbid, Crains New or! Business

'.

OFFICE OF THE BRONX BOROUGH PRESIDENT

Ado !o C"rrion

PREPARED BY< Noah A. +ran!lin !irector of olicy and "egislation Anne +enton Communications !irector Konnie Hy!es ress #ecretary Gi!e Gurphy !eputy ress #ecretary Carey A. &reenberg)Berger olicy $dviser Kobert Castellanete "egislative $ssistant Ko"eo N. "alay, BBB Coro %ellow Jose Ko"an Hcott Holo"on
'4

Ja"ie ERA"ico Ban Clar!e Halter Alex Sanuto Chanelle ?yde olicy #taff

'2