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Workshop Materials June 11, 2004 Vancouver, BC

Economics of Green Buildings


Part II: Design Features of Green Buildings: What are the Costs and Values?

The

Simon Fraser University

Co-sponsored by the Greater Vancouver Regional District and The City Program at Simon Fraser University

Table of Contents
I. Introduction 8
About the Sponsors 9 Acknowledgements 10 Program Agenda 14 Instructor Biographies 16

II. Green Building Gateway Websites

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Centre for the Built Environment (CBE), University of California, Berkeley http://www.cbe.berkeley.edu/RESOURCES/resources_orgs.htm Ecosustainable Hub http://www.ecosustainable.com.au/index.htm Environmental Building Design and Construction Portal http://www.yourhomeplanet.com Seattle City Light, Sustainable Building Links and Sustainable Site Resources http://www.seattle.gov/light/conserve/sustainability/cv5_slnk.htm http://www.seattle.gov/light/conserve/sustainability/resource/ cv5g_sus.htm United States Green Building Council (USGBC) http://www.usgbc.org/Resources/links.asp#9

III. Green Building Case Study Websites


Canadian Architect, Case Study articles http://www.cdnarchitect.com/default.asp

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Green Buildings British Columbia, BC Buildings Corporation http://www.greenbuildingsbc.com/new_buildings/case-studies.html Natural Resources CanadaOfce of Energy Efciency (OEE)Commercial Building Incentive Program (CBIP) http://oee.nrcan.gc.ca/newbuildings/buildings/casestudiesetudesdecas/index_e.cfm?PrintView=N&Text=N The Sustainable Metropolis, Sustainable Case Studies http://www.metropolismag.com/html/sustainable/case/index.html

Urban Land Institute (ULI), Development Case Studies http://research.uli.org/DK/CaStd/re_CaStd_DevCsStd_fst.html U.S. Department of Energy (DOE), Ofce of Energy Efciency and Renewable Energy, High Performance Buildings http://www.eere.energy.gov/buildings/highperformance

IV. Selected Case Studies 30


Adam Joseph Lewis Center for Environmental Studies Oberlin College 30 http://www.oberlin.edu/envs/ajlc/Default.html Other websites and articles relating to the Adam Joseph Lewis Center for Environmental Studies US Department of Energy-Ofce of Energy Efciency and Renewable Energy, Adam Joseph Lewis Center for Environmental Studies http://www.eere.energy.gov/buildings/highperformance/case_ studies/overview.cfm?ProjectID=18 William McDonough & Partners: Architecture and Community Design http://www.mcdonoughpartners.com/projects/oberlin/default. asp?projID=oberlin Second Nature-Education for Sustainability: EFS Proles The Adam Joseph Lewis Center for Environmental Studies A building can be a teacher, Donella Meadows http://www.secondnature.org/efs/proles/prole_oberlin.html

Herman Miller 31 http://www.hermanmiller.com Links to web pages and articles relating to Herman Miller US Department of Energy-Ofce of Energy Efciency and Renewable Energy, Herman Miller Market Place http://www.eere.energy.gov/buildings/highperformance/ case_studies/overview.cfm?ProjectID=189 William McDonough & Partners: Architecture and Community Design http://www.mcdonoughpartners.com/projects/hmi/default. asp?projID=hmi FM SystemsCase Study for Herman Miller http://www.fmsystems.com/knowledge_case03.html

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Mountain Equipment Co-Op (MEC) http://www.mec.ca

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Links to other web pages and articles relating to MECs Green Buildings Green Building Boosts Co-op Sales-Mountain Equipment Co-op http://www.climatechangesolutions.com/sme/stories/mec. shtml?o=intro&r=stories EcoSmart Concrete-Case Study: Mountain Equipment Co-op http://www.ecosmart.ca/kb_viewdocumentdetail. cfm?RecordID=360 The Solaire at 20 River Terrace, Battery Park City, New York City 34

Links to web pages and articles relating to The Solaire US Department of EnergyOfce of Energy Efciency and Renewable Energy, The Solaire at 20 River Terrace, Battery Park City http://www.eere.energy.gov/buildings/highperformance/case_ studies/overview.cfm?ProjectID=273 Metropolis Magazine, October 2001, Green Giant, Alec Appelbaum http://www.metropolismag.com/html/content_1001/ent/ Battery Park City Authority Site 18A Development: The Solaire http://www.batteryparkcity.org/ IAQ News: First Green High-Rise Residential Building in The World http://www.iuoe.org/cm/iaq_greenbuild.asp?Item=335

V. Organizations with Newsletters 36


Association of Professional Engineers and Geoscientists of BC (APEGBC) Sustainability NOW http://www.sustainability.ca BuildingGreen.com Environmental Building News (EBN) http://www.buildinggreen.com Rocky Mountain Institute RMI Solutions http://www.rmi.org

VI. Organizations 39
Advanced Buildings Technologies & Practices http://www.advancedbuildings.org BUILDSMART Operated by the Greater Vancouver Regional District http://www.buildsmart.ca/

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Canada Green Buildings Council (CGBC) http://www.cagbc.ca EcoDesign Resource Society http://www.vcn.bc.ca/edrs/index.html Hugh L. Carey Battery Park City Authority, New York, NY http://www.batteryparkcity.org/ International Initiative for Sustainable Built Environment (IISBE) http://greenbuilding.ca Smart Communities Network http://www.sustainable.doe.gov/ Smart Growth BC http://smartgrowth.bc.ca Smart Growth Online http://www.smartgrowth.org/default.asp The UBC Campus Sustainability Ofce (UBC CSO) http://www.sustain.ubc.ca/greenbuilding.html

VII. Articles 46
Adelstein, A. (2004). Building green primer: Sustainable options keep growing. BUILDERnews online. Retrieved March 10, 2004 from, http://www.nwbuildermagazine.com/article.asp?ID=66 46 Seiter, D. (2003). Top ve bogus reasons not to build green. Built Green ColoradoHome Builders. Retrieved March 15, 2004 from, http://www.builtgreen.org/homebuilders/bogus.htm 49 Gottfried, D. (2003). A blueprint for green building economics. Environmental Design + Construction. Retrieved March 10, 2004 from, http://www.edcmag.com/edc/cda/articleinformation/features/ bnp__features__item/0,,103638,00+en-uss_01dbc.html 52 Dooley, R. (2003). Green building trends: Mainstream builders see value of building green. Media Resources-NAHB Research Centre. Retrieved March 10, 2004, from http://www.nahbrc.org/tertiaryR. asp?DocumentID=3724&CategoryID=1676 56 Maclay, W. (2002). Producing value in the workplace through Green building design. Valley Business Journal. Retrieved March 10, 2004 from, http://www.wmap-aia.com 59

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VIII. Book Excerpt 63


Wilson, A., Seal, J.L., McManigal, L., Lovins, H.L., Cureton, M., Browning, W.D. (1998). Green Development: Integrating Ecology and Real Estate. John Wiley & Sons. Retrieved March 11, 2004 from, http://www.rmi.org/sitepages/pid222.php.

IX. Green Building Glossary 74


From Hugh L. Carey Battery Park City Authority, New York, NY Green Glossary, http://www.batteryparkcity.org/green_glossary_ v3.htm, April 2004.

X. Photo Credits 82 XI. Presentation Notes 83


Thomas Mueller David Orr Jennifer Sanguinetti Ray Cole Vivian Manasc

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Introduction
This program, The Economics of Green Buildings, is the fortunate result of a partnership between the Greater Vancouver Regional District and the Simon Fraser University City Program. Together we have endeavoured to create a timely discussion on the economic realities of green buildings. This program, the second part in a four-part series on the topic, includes the public lecture, Green Buildings: Rethinking their Design and Economic Benets with David Orr, PhD, Professor and Chair of the Environmental Studies Program at Oberlin College, Oberlin, Ohio, and the day-long workshop, Design Features of Green Buildings: What is the cost and value?

It is our hope that these events will stimulate dialogue and discussion on the future development of green buildings which are not only economically viable, but environmentally and socially responsible as well.

This booklet includes a selection of general websites on green buildings as well as selected case studies and links to related organizations, articles, as well as the speakers notes from the workshop. We hope you nd these references helpful in your work.

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About the Sponsors


The Greater Vancouver Regional District provides leadership for the building industry on all aspects of sustainable buildings. The City Program at Simon Fraser University is committed to the design and delivery of new mid-career professional development programs on a wide-range of urban issues. Both organizations saw the need to address the economic aspects of green buildings and together we have created a four-part program on the Economics of Green Buildings. This public lecture and one-day workshop are the second in this series of programs. We would like to take this opportunity to thank Thomas Mueller, Team Leader, Business Services, and Nancy Knight, Divisional Manager, Demand Side Management, from the Greater Vancouver Regional District, for their leadership and participation in this program. We also thank Ken Cameron, Manager, Policy and Planning, Greater Vancouver Regional District, for introducing the evening public lecture, Green Buildings: Rethinking their Design and Economic Benets, the Dialogue Institute Steering Committee for the Morris J. Wosk Centre for Dialogue at Simon Fraser University, and the Simon Fraser University City Program team Judy Oberlander, Director; Frank Pacella, Program Assistant, for the design and layout of this publication; Susan Tam, Program Clerk; Sara Danziger, Research Assistant, for researching these green building websites; who together worked on the design and delivery of the public lecture, the workshop and these course materials. The summary of the presentations from the public lecture and workshop as well as the annotated list of websites on the Economics of Green Buildings will be posted on our respective websites in July 2004. Please note that the conference summary and course materials from Part I of this program, held in November 2003, are currently available on the websites noted below. We encourage you to visit our websites as well as those of our collaborating organizations.

www.gvrd.bc.ca www.buildsmart.ca

The City Program, SFU www.sfu.ca/city


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Acknowledgements
We thank our speakers, David Orr, Vivian Manasc, Jennifer Sanguinetti, Ray Cole, and Thomas Mueller for their willingness to share their experience and expertise with all of us. Their passion and commitment to public and professional education on green buildings is exemplary and we are the fortunate beneciaries. We would also like to thank the following individuals for their assistance in producing this manual: Nancy Gardner, Manasc Isaac Architects Ltd., Sharon Anderson and A. Mason of the Rocky Mountain Institute; Peter Dobrovolny, City of Portland; Sharon Margison, Federation of Canadian Municipalities; Leah Adair, Greater Vancouver Regional District; Stephane Laroye, Hotson Bakker Boniface Haden Architects and Urbanistes; Julie Foxall, Stantec Architecture; Jacquie Breadon, SFU Community Trust; Cedric Burgers, Robert Burgers Architects; Brian Wakelin, Busby + Associates Architects; and Jonathan Rider and Brian Sutherland, Musson Cattel Mackey Partnerships.

Advisory Committee
The Economics of Green Buildings Program Advisory Committee contributed immensely to the design and development of the program. Our thanks to: Joe Van Belleghem, CGA, Partner, Developments, Windmill Development Group Ray Cole, PhD, MAIBC (Hons), Professor, School of Architecture, The University of British Columbia Thomas Mueller, MA, Team Leader, Business Services, Greater Vancouver Regional District Jennifer Sanguinetti, P.Eng, P.E., Manager, Sustainable Building Services, Keen Engineering

Advisors to the Committee


Peter Busby, BA, BArch, FRAIC, MAIBC, AAA, OAA, BCID, Principal, Busby + Associates Architects Ltd. Jacques Khouri, BComm, RI(BC), FRI, President and CEO, VanCity Enterprises Ltd. Michael Geller, BArch, MAIBC, MCIP, President and CEO of the Simon Fraser University Community Trust

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Collaborating Organizations
The following organizations agreed to collaborate with us in order to promote this program to their members and assist us in reaching new audiences in the real estate industry which are interested in green buildings. We thank the following organizations for their support and we encourage you to visit their websites and learn more about their work: Association of Professional Engineers and Geoscientists of British Columbia www.apeg.bc.ca APEGBCs Sustainability Now: www.sustainabilitynow.com BC Ready-Mixed Concrete Association www.bcrmca.bc.ca British Columbia Association of the Appraisal Institute of Canada www.appraisal.bc.ca Canada Green Building Council www.cagbc.ca Canada Mortgage and Housing Corporation www.cmhc-schl.gc.ca Certied General Accountants Association of British Columbia www.cga-bc.org Eco-Design Resource Society www.vcn.bc.ca/edrs Environmental Managers Association of British Columbia www.emaofbc.com Federation of Canadian Municipalities www.fcm.ca FCMs Green Municipal Investment Fund www.fcm.ca/scep/support/GMIF/gmif_index.htm FCMs Sustainable Communities Knowledge Network http://kn.fcm.ca Green Buildings BCBritish Columbia Buildings Corporation www.greenbuildingsbc.com

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National Association of Industrial and Ofce Properties Vancouver Chapter www.naiopvcr.com Quantity Surveyors Society of British Columbia www.qssbc.org Real Estate Institute of British Columbia www.reibc.org Smart Growth BC www.smartgrowth.bc.ca US Green Building CouncilVancouver Branch www.usgbc.org

Canada Green Building Council

Real Estate Institute of British Columbia

Quantity Surveyors Society of British Columbia

EcoDesign Resource Society


BRITISH COLUMBIA A S S O C I AT I O N Appraisal Institute of Canada

Vancouver Chapter

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Continuing Education Partners


We also thank our continuing education partners for their on-going assistance in promoting programs to their membership. Architectural Institute of British Columbia www.aibc.ca British Columbia Society of Landscape Architects www.bcsla.org Planning Institute of British Columbia www.pibc.bc.ca Urban Development InstitutePacic Region www.udi.bc.ca

Members of the AIBC, PIBC, and BCSLA who attend this program receive continuing education credits toward their mandatory continuing education programs.

City Program Endowment Supporters


The City Program gratefully acknowledges the generous contributions of The Real Estate Foundation of British Columbia and The Lohn Foundation towards the City Program Endowment Fund, which will support the City Programs activities for many years to come.

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Program Agenda
Economics of Green Buildings: Part II June 1011, 2004 Venues: Morris J. Wosk Centre for Dialogue at Simon Fraser University, and the Library Square Conference Centre at the Vancouver Public Library Public Lecture Green Buildings: Rethinking their Design and Economic Benets June 10, 2004 78:30 pm Venue: Morris J. Wosk Centre for Dialogue, Simon Fraser University 580 West Hastings Street, Vancouver A free public lecture delivered by David Orr, PhD, Professor and Chair of the Environmental Studies Program at Oberlin College, Oberlin, Ohio. Workshop Design Features of Green Buildings: What are the costs and values? June 11, 2004 9 am5 pm Venue: Library Square Conference Centre Vancouver Public Library, 350 W. Georgia, Vancouver This workshop will address the economic aspects of green building design including the environmental implications of LEED Certicationenergy conservation, water efciency, site sustainability, indoor environmental quality as well as building materials and resources. What are the short and long-term cost implications of these components in a buildings design? It will also focus on the technical details of green buildings that will be of interest to architects, environmental consultants, engineers, building technologists, landscape architects, planners, owners, tenants, real estate consultants, nancial institutions and others.

Figure 1

14 Economics of Green Buildings

June 11 Workshop Agenda


99:05 am 9:059:20 Welcome and IntroductionsKen Cameron A New Direction: Cost and Value of Sustainable DesignThomas Mueller Creating a New Green Building Model: A Case Study of the Lewis Environmental Centre at Oberlin College, Oberlin OhioDavid Orr Break Learning from Experience: Optimizing Costs and Design Through Post Occupancy Evaluations Jennifer Sanguinetti Fact and Fiction: Lessons from the Actual Performance of Green BuildingsRay Cole Lunch Case Studies from the West: St. John Ambulance Education and Training Facility in Edmonton; the new Water Centre in Calgary, and the Government of Canada Building in Yellowknife Vivian Manasc Break This session will focus on a discussion of core values and how they are understood by all the members of the design team during the different phases of a project. How do we create a climate in which the economics and the design solutions support each other? How do we move from theory to practice? Presentations and a Conversation with David Orr and Vivian Manasc Concluding Discussion with all the speakers Moderated by Thomas Mueller

9:2010:45

10:4511 1111:45

11:4512:30 pm

12: 301:30
Figure 2

1:302:45

2:453 34

45

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Instructor Biographies
Ray Cole, PhD, MAIBC (Hons), Professor, School of Architecture, University of British Columbia Ray Cole is a Professor at the School of Architecture, University of British Columbia where he has been teaching environmental issues in building design for the past twenty-six years. Dr. Cole heads the Environmental Research Group at the School of Architecture, which is the focus of environmentally related research within the School. He was co-founder of the Green Building Challenge - an international collaborative effort to benchmark progress in green building performance and environmental assessment - and has served on numerous national and international committees related to buildings and the environment. Dr. Cole was made an Honorary Member of the Architectural Institute of British Columbia, April 1997 in recognition of signicant and dedicated service in the support and advancement of the profession of architecture and in member institutions. He was selected as the North American Association of Collegiate Schools of Architecture Distinguished Professor for sustained commitment to building environmental research and teaching in 2001. In 2003, he received the Architectural Institute of British Columbia Barbara Dalrymple Memorial Award for Community Service for exemplary service to the community of learners in the elds of architecture and green building practice, the US Green Building Councils Public Sector Leadership Award, and was recognized as a University of British Columbia Distinguished University Scholar.

Figure 3

Vivian Manasc, FRAIC, MAAA, MBA, LEED Accredited Professional Vivian Manasc is Senior Principal of Manasc Isaac Architects, one of Edmontons largest architectural practices. Vivian received her Architectural degree from McGill University and her MBA from the University of Alberta. She is a Fellow and Director of the Royal Architectural Institute of Canada, and a Director of the Canada Green Building Council, on the Board of Economic Development Edmonton, founding member of the Sustainable Buildings Symposium, adjunct professor of Architecture at the University of Calgary, and is active in a number of community organizations. She has worked extensively in the area of designing outstanding sustainable buildings for public and corporate sector clients focusing on the facilitation of the sustainable design process. Manasc Isaac Architects is a leader in cold-climate sustainable design in Western Canada and have been recognized with a
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Figure 4

number of signicant architectural awards, including the Governor Generals Award in Architecture. Vivian is also co-author of the book, Agora Borealis: Engaging in Sustainable Architecture. Her professional memberships include Regional Director, Board of the Royal Architectural Institute of Canada; and Vice Chair, Continuing Education and Board Member, Canada Green Building Council. She has been the recipient of Awards and Achievements including Global Woman of Vision, 2002; Governor Generals Medal for Excellence, Yukon Visitor Reception Centre, 1997; and YWCA Women of Distinction Award, 1997. Her design include: Educational Facilities Athabasca University Facility Masterplan Government Buildings Government of Canada Building, Yellowknife, NT; City of Calgary Manchester Waterworks and Wastewater Building, Calgary, AB; Spruce Grove Shenfeld Centre Study, Spruce Grove, AB; Beaumont Town Hall, Beaumont, AB; Banff Town Hall, Banff, AB; Hinton Government Centre, Hinton, AB Healthcare Facilities Saddle Lake Healing Centre, Saddle Lake, AB Peigan Health Facility, Peigan, AB; Athabasca Health Centre, Stony Rapids, SK Corporate Facilities Intuit Canada Ofce & Call Centre, Edmonton, AB Raylo Chemicals Addition, Edmonton, AB Recreation Facilities Yukon Visitor Reception Centre, Whitehorse, YK

Thomas Mueller, MA, Team Leader, Business Services, Greater Vancouver Regional District, Policy & Planning Department As Team Leader, Business Services, Thomas is managing the Greater Vancouver Regional Districts green buildings and sustainable business program. Thomas has an undergraduate degree in Geography, Ecology & Planning from the Ludwig-Maximilian University in Munich, Germany; and Masters degree in Regional Planning and Resource Development from the University of Waterloo, Waterloo, Ontario. Thomas has 15 years of experience in sustainable resource management and planning for urban sustainability in government, consulting and
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non-prot environment. Over the past ten years, Thomas has held various positions at the GVRD. His expertise includes program and policy development for green buildings and sustainable community development; and business waste reduction/recycling and water conservation. Thomas is the current chair of the LEED BC Steering Committee (a group of representatives from local and provincial government and utilities responsible for the successful adaptation of LEED building rating systems to British Columbia); Chair of the Vancouver Branch of the U.S. Green Building Council, and a member of the Board of Directors the Canada Green Building Council. He is a LEED accredited professional and a provisional member of the Planning Institute of BC.

David Orr, PhD, Professor and Chair of the Environmental Studies Program, Oberlin College, Oberlin, Ohio David W. Orr was born in Des Moines, Iowa and was raised in New Wilmington, Pennsylvania. He holds a B.A. from Westminster College (1965), a M.A. from Michigan State University (1966), and a Ph.D. in International Relations from the University of Pennsylvania (1973). He and his wife have two sons and two grandchildren. David Orr is currently Professor and Chair of the Environmental Studies Program at Oberlin College. He is perhaps best known for his pioneering work on environmental literacy in higher education and his recent work in ecological design. He raised funds for and spearheaded the effort to design and build a $7.2 million Environmental Studies Center at Oberlin College, a building described by the New York Times as the most remarkable of a new generation of college buildings and selected as one of 30 milestone buildings in the 20th century by the U.S. Department of Energy. He was awarded a Bioneers Award in 2002, a National Conservation Achievement Award by the National Wildlife Federation in 1993, a Lyndhurst Prize in 1992 awarded by the Lyndhurst Foundation to recognize the educational, cultural, and charitable activities of particular individuals of exceptional talent, character, and moral vision, the Benton Box Award from Clemson University for his work in Environmental Education (1995). He holds three Honorary Doctorates and has been a distinguished scholar in residence at Ball State University (1995) and Westminster College in Salt Lake City (1996). In a special citation, the Connecticut General Assembly noted Orrs vision, dedication, and personal passion in promoting the principles of sustainability. The Cleveland Plain Dealer described him as one of those who will shape our lives.

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David Orr is the author of four books: The Last Refuge: The Corruption of Patriotism in the Age of Terror (Island Press, 2004); The Nature of Design (Oxford, 2002); Earth in Mind (Island, 1994); Ecological Literacy (SUNY, 1992) and co-editor of The Global Predicament (North Carolina, 1979) and The Campus and Environmental Responsibility (Jossey-Bass, 1992). He has published 120 articles in scientic journals, social science publications, and popular magazines. Dr. Orr is contributing editor of Conservation Biology. He is a Trustee of the Educational Foundation of America and the Compton Foundation. He serves on the Boards of the Rocky Mountain Institute (CO), Second Nature (MA), the Center for Ecoliteracy (CA), and the Center for Respect of Life and Environment. He is also an advisor and consultant to the Trust for Public Land, the National Parks Advisory Committee, and other organizations. He is a frequent lecturer at Schumacher College (UK) and has lectured at hundreds of colleges and universities throughout the U.S.

Jennifer Sanguinetti, P.E., P.Eng., Principal, LEEDTM Accredited Professional, Manager, Sustainable Building Services Group, Keen Engineering Jennifer is one of Keens original environmental design leaders. Her interest in energy efcient designs began when she rst started with Keen and resulted in the success of a number of energy efcient projects. She knows the importance of having buildings work with the environment, as opposed to being self-contained and working against the surroundings. Jennifer seeks low-tech solutions for her sustainable designs, preferring to keep the design simpler with more natural systems. Jennifer rst joined Keen in 1994. She has worked on a variety of projects including institutional, commercial and residential work. She is particularly adept at quantifying and predicting building performance. Jennifer is one of Keens energy modelling specialists with considerable experience with a wide variety of simulation software and is very familiar with energy management incentive programs. She now heads the group within Keen that specializes in sustainable design services, looking for opportunities to optimize a clients building for the occupants, the environment and the bottom line. She was named one of Business in Vancouvers Top 40 under 40 achievers and entrepreneurs in 2003.

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Green Building Gateway Websites


In order to provide an overview of the numerous websites on the Economics of Green Buildings, we have prepared an annotated list of websites on green buildings including recent North American buildings. This second selection of sites is designed to highlight case studies of particular interest to architects, planners, engineers, real estate developers, elected ofcials and building industry professionals who seek information on the design aspects of green buildings. This list, compiled during the Spring of 2004, is focused on design features of green buildings and their economics. Essentially it is a snap shot of what we have found. We encourage readers to revisit these websites which are continuously updated. It is not designed to be comprehensive; rather it is a selective list focused on North American resources which are non-commercial and representative of the range of green building design. These sites were selected for their content on the design aspects of green buildings, their currentness, ease of access and wide range of resources. In order to provide direct links for future reference, the specic sections of each site related to design and economics have been highlighted. Selected articles and book extracts are included as examples of the range of resources available. Annotated websites by Sara Danziger, B.A. , Research Assistant, The City Program, Simon Fraser University

Centre for the Built Environment (CBE), University of California, Berkeley


http://www.cbe.berkeley.edu/RESOURCES/resources_orgs.htm Overview The mission at the Centre for the Built Environment is to improve the design, operation, and environmental quality of buildings by providing timely, unbiased information on building technologies and design techniques. Created in 1997 by government and industry leaders along with faculty and researchers at UC Berkeley, the centre conducts research and creates publications relating to two broad program areas: 1) tools for improved building performance; and, 2) new technologies that make buildings more environmentally friendly, more productive to work in, and more economical to operate. This site has been included as a gateway site because of its extensive publication and research list as well as the links it provides to other national research labs and organizations, university research centres, green building organizations, and workplace research.
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Highlights There are only 15 links provided under the heading Green Building Organizations; however, it appears they capture the most relevant sites related to green buildings. The links also include useful and descriptive annotations. These links are mainly from the United States; nevertheless, they are denitely worth exploring as most of the information can be applied in a Canadian context. As stated on the site, many of CBEs research reports are publicly available and are posted on the site under the heading Research. These reports can be downloaded in PDF format. The Centre for the Built Environment Research Publication List provides a good example of the type of research CBE conducts and where their ndings are published.

Ecosustainable Hub
http://www.ecosustainable.com.au/index.htm Overview Created by an Australian and other international professionals, Ecosustainable Hub describes itself as a one-stop connection to resources and tools on ecology, environment and sustainability made available to visitors and researchers without charge facilitating cooperation, networking and ethical developments. Besides information on their mission and scope, Ecosustainable Hub offers an Environment Sustainability Exchange, which includes tools, products, services and links; a forum section, including a message board; a main links section featuring resources and tools on ecology, environment and sustainability; and a terric section of links to projects. Highlights As the introduction on their homepage to their links section indicates, This is a huge ecosustainable resource containing almost 1000 environmentally and sustainability links indexed by specic topics. Some topics of interest include: architecture, planning, eco design; building, housing, urban development; renewable energy, alternative technology; networks communities, consortiums; eco-tourism, ecovillages, eco real-estate; and foundations, organizations, societies. This is a very well designed site that is easy to navigate, which is important because there is so much information on this site. Although this is an Australian-based site, it appears that there is equal representation of information from many countries worldwide.

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According to the U.S. Department of Energys Center for Sustainable Development, buildings consume 40% of the worlds total energy, 25% of its wood harvest and 16% of its water.
Excerpt from the website of Seattle City Light, Sustainable Building Links and Sustainable Site Resources

Environmental Building Design and Construction Portal


http://www.yourhomeplanet.com Overview This portal site was created and is managed by Alex Joseph, M.E.Des., B.Sc., LEED Accredited Professional. Joseph also offers a continuing studies course on environmental design through the University of Calgary. This site is intended for designers and builders in order to aid in their understanding of environmental design. There are over 1000 links posted on this site; however, the site has not been updated since 2003. All the links are divided into categories and within the categories are sub-categories. Categories include: alternative design, books and magazines, case studies, companies and professionals, green ofces, indoor environmental quality, online resources, organizations, products, water, and web directories. Highlights For example, under the category Web Directories are the sub-categories Green Building Products and Hotels. The Green Building Products sub-category links you to sites that include: Cyburbias (a well known urban planning portal) sustainable linkshttp://directory.cyburbia.org/; Architectural Virtual Library at the University of Torontohttp://www.clr.utoronto. ca/VIRTUALLIB/arch.html; and, Construction Zone Marketplacehttp://www.c-z.com/. Each link has the country of origin listed beside it along with the city, where applicable. There appears to be plenty of Canadian information listed on the site. Information can also be found on when each link was added to the site, how many hits it has received, its rating and an option for the user to rate the site. When you click on a category, the site offers related categories and sub-categories that the user may nd of use. Joseph also provides a list of books and products. There is an option for the user to list their site on this portal site.

Seattle City Light, Sustainable Building Links and Sustainable Site Resources
http://www.cityofseattle.net/light/conserve/sustainablility/ cv5_slnk.htm http://www.seattle.gov/light/conserve/sustainability/resource/ cv5g_sus.htm Overview Seattle citizens created Seattle City Light in 1902 to provide affordable, reliable, environmentally sound electric power. A six
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member Advisory Board runs Seattle City Light through the City of Seattle and provides expertise in issue analysis, policy development, long-range planning and other areas particular to the electric utility industry. They also take an interest in sustainable buildings. Under the Conservation heading there is a subheading called Sustainability. This page provides a simple description of sustainability and why it is necessary. The web page states that, According to the U.S. Department of Energys Center for Sustainable Development, buildings consume 40% of the worlds total energy, 25% of its wood harvest and 16% of its water. The building industry is the nations largest manufacturing activity, representing more than 50% of the nations wealth and 13% of its Gross Domestic Product. Energy and material consumption in buildings can contribute signicantly to global climate change. Highlights The rst link listed above, Sustainable Building Links, offers links to sites that focus on sustainable/green building. There is some overlap between these web links and CBEs but that is to be expected in a small and growing industry. The second link, Sustainable Site Resources, is geared towards those in the construction, design, and development industries. This is a comprehensive list of websites, product guides, programs, available grants, documents and more relating to sustainable/green building. This list is organized into private sector resources, non-prot resources, and public sector resources. In addition to the two links provided, there may be other information of interest on this site, such as, a Sustainable Resource Guide, LEED scoring credits, and a Green resource checklist.

Figure 5

United States Green Building Council (USGBC)


http://www.usgbc.org/Resources/links.asp#9 United States Green Building Council is the leading organization representing the entire industry on environmental building matters. The members of the U.S. Green Building Council, who represent all segments of the building industry, developed LEED and continue to contribute to its evolution. USGBC has considerable inuence on the green building industry. Through their members, chapters, events, research, publications, news, and LEED programs, USGBC is one of the most far-reaching organizations. Due to their inuence in the industry, they are listed on all of the above gateway sites and included here because of the abundance of information located on their site, particularly in the Resource section.
SFUs City Program and the GVRD 23

Highlights The Green Building Links listed on this site appear to offer a very inclusive list of Internet resource sites. Of particular interest may be the links listed under the headings, Economics, Case Studies, Commissioning Post-Occupancy Evaluations, and Life Cycle Analysis and Costing. Other documents of interest may be the LEED documents, which include, LEED-NC Rating System, LEED-NC Reference Package, LEED-NC Reference Guide, LEED-NC Letter Templates, and Fact Sheets. All of the documents can be downloaded in PDF format. USGBC also offers a Green Publication List, many of which can be downloaded. Also offered are descriptions of the green research that the Council and others are involved in.

24 Economics of Green Buildings

Green Building Case Study Websites


Canadian Architect, Case Study articles
http://www.cdnarchitect.com/default.asp Overview Canadian Architect is Canadas only monthly design publication for Canadian architects and other related industry professionals. The website provides access to current and archived articles. Green building case studies can be located through the Archives link on the menu bar and then performing a search with the words Green building and Case study. The majority of case studies in Canadian Architect highlight Canadian achievements. Highlights Canadian Architect, April 2002, Raising Environmental Standards, Vince Catalli and Maria Drake. - This article is a case study of a Nortel project near Ottawa. The authors illustrate how ISO 14000, described in the beginning of the article, can be used to establish an environmental management framework and successfully integrate environmental considerations into an otherwise typical design and construction project. Canadian Architect, January 2002, Rain Forest Green, Architectural Planning Architecture Interiors Inc. in collaboration with Arthur Erickson - The focus of this article is The Liu Centre for the Study of Global Issues, University of British Columbia and describes how this building seeks to establish a new benchmark for sustainable design at UBC. Pictures and a site plan are provided.

Figure 6

Green Buildings British Columbia, BC Buildings Corporation


http://www.greenbuildingsbc.com/new_buildings/case-studies. html This website is an excellent example of how provincial governments can develop and promote green building initiatives. The BC Buildings Corporation in association with the Provincial Government, has established two programs under the heading, Green Buildings British Columbia. The rst, New Buildings Program, through the Ministry of Finance, develops a policy for the integration of green buildings principles and practices into the design of provincially funded buildings. The main goal of this program is to develop sustainable and environmentally responsible governSFUs City Program and the GVRD 25

ment facilities. The second initiative, Retrot Program, encourages BC-funded school districts, universities, colleges and health care institutions to retrot their facilities to improve their energy and water efciency, and reduce their greenhouse gas emissions and waste generation. Highlights Case studies for both programs can be downloaded in PDF format. The case studies include British Columbian and nonBritish Columbian examples and are presented in an easy to understand format. Other reports worthy of note may be found in the Resources section. Some titles include: Planning, design and construction strategies; A guide to green building resources; Guide to value analysis and the integrated design process; and, The Green Buildings Company Directory. All documents may be downloaded.

Natural Resources CanadaOfce of Energy Efciency (OEE) -Commercial Building Incentive Program (CBIP)
http://oee.nrcan.gc.ca/newbuildings/buildings/casestudiesetudesdecas/index_e.cfm?PrintView=N&Text=N Overview Established in 1998, The Ofce of Energy Efciency is committed to expanding and strengthening Canadas obligation to reduce green house gas emissions and increase energy efciency through a variety of programs. OEE manages seven programs: 1) buildings; 2) equipment; 3) government operations; 4) housing; 5) industry; 6) transportation; and, 7) outreach. The Commercial Building Incentive Program is part of the Building Program. This is an innovative example of a federal government initiative promoting sustainable building practices. They accomplish this through the use of nancial incentives of up to $60,000 to building owners whose designs meet the requirement set out by the Commercial Building Incentive Program. These requirements aim to reduce energy use by at least 25% compared to the requirements of the Model National Energy Code for Buildings. The main objectives of this program are to encourage Canadian designers and those in the construction industry to utilize energy-efcient design practices and promote lasting changes in the design and construction industry. This website offers detailed information about the program, how to apply, technical guides, and software that can be used to assess CBIP compliance.

26 Economics of Green Buildings

Other valuable information are the CBIP Design Examples that provides quick access to overviews of buildings that have qualied for a CBIP incentive and the Design Charrettes that provide the results of integrated workshops addressing different building types. Highlights Each case study is a Canadian example of various building types that have complied with CBIP requirements to incorporate energy efcient measures. Included in the case studies are extensive overviews, highlights and detailed descriptions of the buildings design, energy performance, and the environmental performance. Each case study also gives an expected energy cost savings. To date, it appears that nine buildings have participated in the program which is expected to run until March 31, 2007. Other initiatives through the building program include - The Energy Innovators Initiative, where advice, funding, and training are provided to improve the energy efciency of existing buildings. Funding is available up to $250,000. - The Industrial Buildings Incentives Program is the same as the above and offers up to $80,000 for those who qualify. - The Federal Buildings Initiative offers comprehensive energy-management products and services to Government of Canada organizations to help them improve the energy efciency of their buildings.

The Sustainable Metropolis, Sustainable Case Studies


http://www.metropolismag.com/html/sustainable/case/index. html Overview Produced by Metropolis Magazine, which examines contemporary life through designarchitecture, interior design, product design, graphic design, crafts, planning, and preservation, The Sustainable Metropolis is a special feature of metropolismag.com until all design is sustainable designwhen well simply call it design. This feature is full of valuable information including: a brief history of sustainable design; an extremely useful glossary of terms; a list of articles relating to sustainable design education that are available in full text; and a resource section that includes sustainable events, a small links page, a bibliography that leads you directly to Amazon.com and a list of additional reading. The most detailed aspect of this feature is the section, Sustainable Case Studies.

SFUs City Program and the GVRD 27

Highlights Each case study is an article from Metropolis Magazine, all of which are available in full text. Each article is briey summarized, making it easy to access the ones that are most relevant to the user. Most articles highlight U.S. environments; however, there are some world-wide examples included as well, such as the article entitled, Gardens Renew Cubas Urban Core.

Urban Land Institute (ULI), Development Case Studies


http://research.uli.org/DK/CaStd/re_CaStd_DevCsStd_fst.html Overview Urban Land Institute is a United States-based non-prot research and education organization. Their mission is to provide responsible leadership in the use of land to enhance the total environment. This website is a multidisciplinary real estate forum where local, national, and international industry leaders and policy makers can exchange information, ideas, and experiences. This website if full information relating to green buildings found under the label Smart Growth. There are links, periodicals, books, and other data relating to this topic found under the Research heading, located on the side menu bar. Of note are ULIs Smart Growth case studies, also located under Research. Highlights There are approximately 20 case studies listed under the headings of Inll Development, Browneld Redevelopment, Inner-Ring Development, and Suburban Development. All case studies U.S. based. One must be a member of the Urban Land Institute in order to access the full case study report, although, non-members can access descriptive summaries for each project. Under the Development case study heading, a description of The Solaire in New York City can be found, which is the United States rst green residential high-rise; one must be a ULI member to access the full description.

U.S. Department of Energy (DOE), Ofce of Energy Efciency and Renewable Energy, High Performance Buildings
http://www.eere.energy.gov/buildings/highperformance Overview The U.S. Department of Energy, High Performance Buildings, is a government research initiative designed to improve the energy efciency of commercial buildings in the United States. DOE
28 Economics of Green Buildings

Is it possible to design buildings so well and so carefully that they do not cast a long ecological shadow over the future that our students will inherit? We now know that such things are possiblethat buildings can be designed to give more than they take
Dr. David Orr, Oberlin College

works with researchers, building owners, contractors, engineers, architects and other in the commercial building industry to reduce the energy consumption of buildings while improving their quality, occupant comfort, and cost-effectiveness. The research focuses on renewable energy technologies, recycled and sustainable materials and site sensitive design. The three research projects include: 1) a High Performance Buildings Database, which seeks to improve building performance measuring methods by collecting data on various factors that affect a buildings performance, such as energy, materials, and land use; 2) Performance Metrics, that aim to develop standardized energy measuring procedures; and, 3) Case Studies. Highlights The case study section provides a good summary of nine high performance buildings. For more detail on each building the reader is directed to go to the High Performance Database or download a detailed PDF brochure. The High Performance Database provides an overview of the site along with descriptions of land use, nances, processes undertaken to produce, energy, materials, indoor environment, images, ratings/awards, and lessons learned. This website is very easy to navigate and all descriptions are written in a very straightforward manner.

SFUs City Program and the GVRD 29

Selected Case Studies


Adam Joseph Lewis Center for Environmental Studies Oberlin College
http://www.oberlin.edu/envs/ajlc/Default.html Overview In the summer of 1999 the ground-breaking ceremony took place where the Adam Joseph Lewis Centre for Environmental Studies at Oberlin College now stands. Spearheaded by Dr. David Orr, Professor and Head of the Environmental Studies Program at Oberlin College, the Lewis Center is an environment not just for classes but rather a building that helps to redene the relationship between humankind and the environment. This building was designed to function as an integrated system by discharging wastewater as pure as the intake water, generating more electricity than it uses, incorporating no materials known to cause major health issues, using energy efcient, locally grown, and sustainable materials, and being surrounded by a landscape which promotes biological diversity. This link takes one directly to the Lewis Centre homepage where everything about the Lewis Centre can be found from the design process to live datashowing the amount of energy the building is using at any one moment in time. Highlights David Orr has aided in the creation of the Living Machine, which is an ecologically engineered system that combines elements of conventional wastewater technology with the purication processes of natural wetland ecosystems to treat and then recycle the buildings water. The water cleaned by this machine services all of the buildings toilets. This site is extremely comprehensive, clearly written, and very informative. Links to websites and articles relating to the Adam Joseph Lewis Center for Environmental Studies US Department of Energy-Ofce of Energy Efciency and Renewable Energy, Adam Joseph Lewis Center for Environmental Studies http://www.eere.energy.gov/buildings/highperformance/ case_studies/overview.cfm?ProjectID=18 - Part of the US Department Of Energys High Performance Building section described earlier, this case study provides a tremendously detailed description of the building process and all materials used in the development of the building.
30 Economics of Green Buildings

Figure 7

William McDonough & Partners: Architecture and Community Design, http://www.mcdonoughpartners.com/projects/oberlin/default.asp?projID=oberlin - William McDonough was chosen, along with other experts in the green building design industry, to help design the Lewis centre. His site provides a basic design overview of the Centre along with links to related articles. Second Nature-Education for Sustainability: EFS Proles The Adam Joseph Lewis Center for Environmental Studies A building can be a teacher, Donella Meadows http://www.secondnature.org/efs/proles/prole_oberlin.html - In (this) article, Donella Meadows, adjunct professor of environmental studies at Dartmouth College, and William McDonough, Dean of the School of Architecture at University of Virginia, discuss how A Building Can Be a Teacher. The exciting lesson they teach us is that the proper design of our built environment, based on the idea that we learn from everything around us, can teach us a sense of place and responsibility.

Herman Miller
http://www.hermanmiller.com Overview The goal of Herman Miller is to create great places to work through research, design, manufacturing and distribution of innovative interior furnishings that support companies, organizations and individuals. Herman Miller is recognized for its products, participative managements as well as their environmental responsibility. Beginning in the early 90s with their zero-landll goal, and continuing with their three-part protocol for sustainability, which focused on infusing environmental attributes into its new products in addition to existing ones, Herman Miller has displayed a strong commitment to sustainable practices. Another important facet is the construction of the Herman Miller factory and ofces located in Michigan. The goal was to create a prototype ofce environment that supports progressive business-place thinking with a sustainable framework. Highlights Herman Miller is one of the few design companies that has taken on Design for the Environment as a core business strategy. Similar to the next case study, Mountain Equipment Co-op, Herman Miller provides an example of integrating sustainability practices into products and building environments.
SFUs City Program and the GVRD 31

Links to web pages and articles relating to Herman Miller US Department of Energy-Ofce of Energy Efciency and Renewable Energy, Herman Miller Market Place http://www.eere.energy.gov/buildings/highperformance/ case_studies/overview.cfm?ProjectID=189 - Part of the US Department of Energys High Performance Building section described earlier, this case study provides a detailed description of the building process and all materials used in the development of the Herman Miller Marketplace. William McDonough & Partners: Architecture and Community Design http://www.mcdonoughpartners.com/projects/hmi/default. asp?projID=hmi - The architects who have designed the Herman Miller Greenhouse provide a nice overview of the building. Links are also provided to related articles. FM Systems-Case Study for Herman Miller http://www.fmsystems.com/knowledge_case03.html - This company provides an excellent overview of the whole Herman Miller campus of buildings; however, this page is more about increasing the efciency of workers through the use of in-house technology rather than green building. Nonetheless, this is an interesting page that displays how technology and environment work together to create an efcient workplace.

Mountain Equipment Co-Op (MEC)


http://www.mec.ca Overview Mountain Equipment Co-Op is a Canadian retail consumer cooperative that is collectively owned and democratically controlled. They are the leading Canadian supplier of outdoor gear and clothing. Because they operate as a co-operative, they are not prot driven. This allows them to measure success in different terms than a regular prot driven organization. For example, they drive to surpass member expectations, reduce their ecological footprint, and to support people in achieving the benets of selfpropelled wilderness-oriented recreations. On their website, they have a section labeled Social and Environmental Responsibility, under this heading is a sub heading labeled Business Operations. This link includes their views on sustainability and what they have done to achieve this, it is one thing to say youre going to be a sustainable business, and an32 Economics of Green Buildings

other to make it happen. Under the Business Operations heading, information on their Green Building Program can be found. For the past ve years MEC has constructed green buildings in Montreal, Ottawa, Toronto, Winnipeg, Edmonton, and their head ofce in Vancouver. In all their stores and ofces in these locations the design, materials, and construction decisions are based on environmental considerations. Detailed case studies of each location can be found here. Highlights Each location link provides an overview of the building along with a chart. There are three charts labeled Reduce, Reuse, and Recycle. Each chart is divided into two columns, the rst is the information on specic materials used along with design features that were employed, the second column describes how these materials and features reduce, reuse or recycle. Since the website is geared towards their co-operative members and potential co-operative members, the language used to describe features of the green buildings is easy to understand and clearly written. Links to other web pages and articles relating to MECs Green Buildings Green Building Boosts Co-op SalesMountain Equipment Co-op http://www.climatechangesolutions.com/sme/stories/mec. shtml?o=intro&r=stories - Article found on Climatechangesolutions.com, which is Canadas megasite of interactive tools, resources and success stories on actions to reduce greenhouse gas emissions. EcoSmart ConcreteCase Study: Mountain Equipment Co-op http://www.ecosmart.ca/kb_viewdocumentdetail. cfm?RecordID=360 - EcoSmart is a customer-friendly way of describing concrete that is optimized to achieve the least environmental impact with no adverse affect on construction schedule and costs, or on the quality and performance of the concrete. EcoSmart connects suppliers, owners, developers, structural designers and concrete contractors to use EcoSmart concrete in construction projects. An example of this is MECs Montreal store. On the link listed above there is a description of the store along with a PDF le that can be downloaded entitled, Ecosmart Concrete Project: A Concrete Contribution to the EnvironmentMountain Equipment Co-op Montreal Store

Figure 8

SFUs City Program and the GVRD 33

The Solaire at 20 River Terrace, Battery Park City, New York City
Overview The Solaire is the United States rst green residential highrise building, designed by Rafael Pelli, Principal of Cesar Pelli & Associates. More information on Rafael Pelli and his other projects can be found on http://www.cesar-pelli.com. The web site is well designed and can be viewed in ash or html text only. The Solaire was the rst mixed income residential project to be designed under the Battery Park City Authority sustainable guidelines and modeled on the LEED rating system. Links to web pages and articles relating to The Solaire US Department of Energy-Ofce of Energy Efciency and Renewable Energy, The Solaire at 20 River Terrace, Battery Park City http://www.eere.energy.gov/buildings/highperformance/ case_studies/overview.cfm?ProjectID=67 - Part of US Department Of Energys High Performance Building section described earlier, this case study provides an extremely detailed description of the building process and all materials used in the development of The Solaire. Metropolis Magazine, October 2001, Green Giant, Alec Appelbaum http://www.metropolismag.com/html/content_1001/ent/ - This article found on Metropolismag.com describes the challenges faced by Pelli and the Battery Park City Authority when attempting to build The Solaire along with the immediate and potential benets of building green. Battery Park City Authority Site 18A Development: The Solaire http://www.batteryparkcity.org/ - This website provides a complete description of the building process, which can be found at the bottom of the page under the heading, A green residential high-rise? Here one can nd multi-media presentations, printable information, and a photographic diary at http://www.batteryparkcity.org/diary.htm. These links are worth exploring.

Figure 9

34 Economics of Green Buildings

IAQ News: First Green High-Rise Residential Building in The World http://www.iuoe.org/cm/iaq_greenbuild.asp?Item=335 - This article provides an excellent summary (laid out in point form) of the green features used in The Solaire. It also mentions that the building was selected by the US Department of Energy as one of the ve projects included in the 2002 Sustainable Building Conference that was held in Oslo, Norway.

SFUs City Program and the GVRD 35

Organizations with Newsletters


Association of Professional Engineers and Geoscientists of BC (APEG)
Sustainability NOW http://www.sustainability.ca Overview Although this site is geared towards engineers and geoscientists, the Association of Professional Engineers and Geoscientists Sustainability Committee has created a very comprehensive Canadian resource on sustainability issues. The information on this site is written a very simplistic manner and is clearly laid out. They offer a section called The Basics, which is a page containing the numerous denitions of sustainability, the core concepts, the main issues, and sustainable methods. They clearly describe their position towards sustainability along with their guidelines, strategic plan and policies, which allows the user to understand the lens through which APEG views sustainability. An interesting section is the Sustainability Primer, which displays how sustainability principles are applied in the geoscientist and engineering disciplines through the use of case studies and best practices. Newsletter Highlights The motto for Sustainability NOW is if not now, when? If not us, who? Because the main contributors are engineers and geoscientists, the newsletter has a strong scientic feel to it; however, this provides a different perspective on the green building industry. A quick way to access relevant articles is by typing Green Building or other such terms into the search menu located on the home page; this then elicits numerous articles on the subject.

BuildingGreen.com
Environmental Building News (EBN) http://www.buildinggreen.com Overview Building Green, an independent company located in Vermont, operates a website containing accurate, unbiased, and timely information designed to help building-industry professionals and policy makers improve the environmental performance, and reduce the adverse impacts, of buildings. This site offers information in the form of articles, products and case studies on a variety of green topics, such as policy and context, land use and community, process, site and water, energy, resources and materials and indoor environmental quality; however, to access any
36 Economics of Green Buildings

of this information one must subscribe to the specic publication where the information is found. On the top menu bar there is a leaf icon, this leads to a page where there are free product listings, articles and case studies (http://www.buildinggreen. com/menus/free.cfm). They also offer a free twice monthly email bulletin, which has information on the upcoming issue of Environmental Building News and the latest products that are being added to their GreenSpec Product directory. Newsletter Highlights EBN is a well-known monthly newsletter covering numerous topics related to sustainable building. There are no sponsors or advertisers in order to ensure editorial freedom and avoid bias. The Rocky Mountain Institute has been quoted on the website saying that EBN is, A must-read for architects and builders dedicated to creating healthy and environmentally friendly buildings. There is a fee for this newsletter that is approximately $100 USD per individual per year, or an organizational rate of $200 USD per year; however, there is an option to try the subscription for a week at $13 USD.

Rocky Mountain Institute


RMI Solutions http://www.rmi.org Overview Located in Colorado and established in 1982 by resource analysts, L. Hunter Lovins and Amory B. Lovins, the Rocky Mountain Institute is a non-prot entrepreneurial organization that works along side governments, corporations, communities and the general public to solve problems and create solutions relating to the sustainable use of resources. This is primarily achieved through education, outreach, consulting, research, and strategic inuences. On the website, there is a noteworthy section on buildings and land, which includes information on their Green Development Services. This unit of RMI works to improve the efciency of buildings and projects through consulting and research. Under the Green Development Services heading there are links to their consulting services, seminars and lectures, the research agenda, case studies, publications and other resources (many of which can be downloaded) as well as other development links. The Rocky Mountain Institute has also published Green Building Sources, that can be downloaded from the following link, www.rmi.org/images/other/GDS-GrnBldgSources2003.pdf.. Updated in August 2003, this annotated list is very comprehensive and includes a bibliography, a list of newsletters and magazines,
SFUs City Program and the GVRD 37

organizations (addresses and web links provided) and courses/education programs. Newsletter Highlights RMI Solutions and can be found by following the link on the side menu bar. The newsletter can be downloaded at no charge and one can subscribe to email announcements, which indicate the publication of each new issue. Most back issues have articles relating to green buildings. A list of green building related articles can be found in the Green Development Service section of the website.

38 Economics of Green Buildings

Organizations
Advanced Buildings Technologies & Practices
http://www.advancedbuildings.org Overview This is an excellent Canadian resource supported by public and private organizations. The target audiences are those in the building profession. This site offers over 90 environmentally sustainable building technologies, practices, and products related to the following design and construction issues: indoor air quality; water conservation; waste management; electricity production; non-toxic materials; recycled materials; day lighting; and energy efciency. The technologies, practices and products are listed under different categories and include, building structures, xtures and nishes, heating and cooling, load management, etc. Each category has an extensive list of technologies, products and practices. Every technology, products, and practice has its own page that includes: a diagram, a description, where one would use it, what building type, the development status, the benets and limitations, application, experiences, the contributing expert, and where one can nd it. Highlights There is a case study section highlighting Canadian examples that have used advanced buildings technologies and practices. Under the Info Source heading, links can be found to downloadable reports, general building information, Canadian government agencies, renewable energy information, energy-efcient information, and indoor air quality and materials. This website is sponsored by Natural Resources Canada; Canada Mortgage and Housing Corporation; Public Works and Government Services Canada; and, Enermodal Engineering.

Figure 10

BUILDSMART
Operated by the Greater Vancouver Regional District http://www.buildsmart.ca/ Overview Initiated in September 2003, BUILDSMART was designed by the Greater Vancouver Regional District to be Greater Vancouvers one-stop source for Green Building information. This resource is geared towards architects, designers, developers and other building industry professionals. There is an abundance of inSFUs City Program and the GVRD 39

formation listed on this site. The section, How to build green, provides detailed information on the ve stages of building design (design, construction, operation and maintenance, retrot and renovations, demolitions/deconstruction). The LEED section presents general information on LEED certication as well as links to USGBC Leadership in Energy and Environmental Design, Canada Green Building Council, Royal Architectural Institute of Canada (RAIC) - Canada Green Building Council, and the LEED - BC Adaptation Guide. This site also offers tools and resources, links to relevant GVRD publications, professional services, as well as news and events. Highlights This is an excellent example of a regional initiative that is working towards producing sustainable living environments. This site is continually being updated and includes the most current reports on the green building industry. This site is full of Canadian content and links to other websites and professionals in the industry.

Canada Green Buildings Council (CGBC)


http://www.cagbc.ca Overview Canada Green Building Council exists to accelerate the design and construction of Green Buildings across Canada. This site offers a wealth of information on LEED including details on becoming a LEED accredited professional. There are also links to green building products, projects, news and events, membership information, and numerous resources. Highlights For those who are interested to learn more about LEED, CGBC offers an introductory PowerPoint presentation that acts as a primer on the LEED rating system as well as introducing users to CGBC council, the major concepts of LEED, and the benets of LEED. The news and events section has the most current information of what is happening in and around British Columbia. An interesting link is the Speakers Bureau, where CGBC offers speakers who are available to speak on a variety of topics including, the economics of green buildings, green design, and green developments.

Figure 11

40 Economics of Green Buildings

EcoDesign Resource Society


http://www.vcn.bc.ca/edrs/index.html Overview The EcoDesign Resource Society is a British Columbia-based nonprot organization that promotes environmentally responsible design, planning and development practices through research, education, and communication. EcoDesign provides a number of services and activities such as a listserve, which is intended as a means to provide participants with short information pieces on best-practices, new technologies, research, progress in the eld, and events of possible interest. EcoDesign is also working on a Primer on Green Design that is to be used as a resource tool for schools and as an introduction to green design for the public. Highlights The resources and links page connect to links with brief annotations on a variety of topics including: architecture; climate change; energy; nance; general sustainable development information; green building; green roofs; industrial ecology; interior design; intriguing potential; planning; and sustainable community design and management. EcoDesign is a great local resource that has been designed to act as network to share information on green design.

Hugh L. Carey Battery Park City Authority, New York, NY


http://www.batteryparkcity.org/ Overview The Battery Park City Authority was the rst agency in the United States to approve a green residential high-rise (Please see the Selected Case Study section-The Solaire). The Authority is committed to the continuation of the green building effort and have created a set of Green Guidelines, which can be easily downloaded from their site. It is an interesting site offering a history and timeline of Battery Park City along with a descriptions of area architecture. Highlights The Battery Park City Authority has compiled a Green Glossary, offering simple denitions to the phrases and terms used in the green building industry. However, this list is not easy to nd when entering through the homepage but can be found at www.batteryparkcity.org/green_glossary_v3.htm Another informative section is their green resources and

SFUs City Program and the GVRD 41

links. These can be found under the Green Buildings heading listed on their homepage. This is an excellent site offering great information; nonetheless, the design of the site could be better.

International Initiative for Sustainable Built Environment (IISBE)


http://greenbuilding.ca Overview Similar to the Smart Communities Network site (see below) the International Initiative for Sustainable Built Environments aim is to actively facilitate and promote the adoption of policies, methods and tools to accelerate the movement towards a global sustainable built environment. This non-prot organization is based in Canada but is international in its scope and has an international board of directors from almost every continent. Like the Smart Communities Network, this organization offers software, interesting and related websites, news on sustainable environments, and information on upcoming conferences and forums. The benet of this site is its focus on international content including Canada. Highlights This site is geared towards those in the public and private building-sectors who have adopted a goal of supporting sustainable development. The website offers an excellent Sustainable Buildings Information system, which has more than 1 Gb of freely downloadable documents organized in a comprehensive system. These documents are designed to provide the user with noncommercial information about sustainable buildings around the world and to point the user to more detailed sources of information elsewhere. An interesting link to explore on the website is the Green Buildings Policies Network, which has been developed by the Sustainable Building Support Centre of Wageningen University, in the Netherlands, with a plan to collect all existing policies, regulations, national programs, governmental instruments etc., that are related to sustainable building and construction.

Smart Communities Network


http://www.sustainable.doe.gov/ Overview Run by the U.S. Department of Energy, the Smart Communities
42 Economics of Green Buildings

Network provides information and services on how communities can adopt sustainable development practices as guiding principles to strengthen their local economy, improve the quality of their environment, and enhance the quality of life and the wellbeing of people in the community. They offer sustainable development decision support tools, which include such things as a Geographic Information System software program that allows you to map, measure and analyze urban ecosystems. Highlights The Topics in Sustainability located on the side menu on the homepage cover topics such as sustainable development, green buildings, green development, land use planning, and measuring progress. In each topic area there is an introduction, denition, examples, articles, educational materials, and other resources. Smart Communities Network offers a free subscription to their newsletter. They also have funding opportunities and a section on upcoming events. Since this website is run by the US Department of Energy, the content is mainly U.S. focused and is geared towards industry professionals.

Smart Growth BC
http://smartgrowth.bc.ca Overview Smart Growth BC is a provincial non-governmental organization, which works with communities, business, municipalities and the public to advocate more sustainable and liveable communities in British Columbia. The goal is to create communities that are more economically, ecologically and socially responsible, including the promotion of alternative development standards. This site includes a collection of presentations, reports and publications, newsletters and annual reports, as well as a list of Smart Growth BC programs and events. Highlights In addition to industry professionals, the site is geared towards community members who are interested in responsible land use practices; therefore, the language on the site is easy to understand. Smart Growth BC provides good and simple background information on numerous topics including transportation, economic development, affordable housing, green spaces, and agricultural land reserves and how the community can get involved.
SFUs City Program and the GVRD 43

Smart Growth Online


http://www.smartgrowth.org/default.asp Overview Related to New Urbanism, Smart Growth is a movement that recognizes connections between development and quality of life. Smart Growth Online is the gateway site to the Smart Growth Network, which was formed in 1996 when the U.S. Environmental Protection Agency joined with several non-prot and government organizations. This site offers a comprehensive overview of the history of Smart Growth and its guiding principles and issues. Highlights In the resources section, one may choose to browse by issue, principle, type, or land development regulation. If you choose to browse by issue or principle, a list of each is provided, when you select a specic issue or principle, a full denition is provided before the list of resources. The Smart Growth Network Partnership list provides a good list of organizations. The Smart Growth Network is based in the US and the website does provide important information relating to the topic; however, more relevant information may be found on Canadian Smart Growth websites (see Smart Growth BC above or Ontario Smart Growth, http://www.smartgrowth.gov.on.ca/ scripts/index_.asp?LG_ID=1).

The University of British Columbia Campus Sustainability Ofce (UBC CSO)


http://www.sustain.ubc.ca/greenbuilding.html Overview The UBC Campus Sustainability Ofce is an excellent example of a local initiative. UBC CSO has taken a leadership role in providing an environmentally responsible campus that is economically viable and reects the values of campus community members. This is achieved through the use of sustainable development practices and the encouragement of sustainable development values in graduates and employees through research, teaching, and operations. The ofce offers nine programs funded by savings from energy reduction programs. These programs aim to reduce energy and resource consumption on campus, encourage the construction of green buildings

44 Economics of Green Buildings

Figure 12

and involve all members of the campus in this ongoing goal to make the university a fully sustainable community. The website offers a comprehensive resource list as well as a toolkit page. Highlights One of the nine programs is the Green Buildings Program. Through this program, UBC CSO has set aggressive green targets for all new buildings on campus. There are currently two green buildings on campus, The CK Choi Building and The Liu Centre. Detailed information on each building can be downloaded from the site.

SFUs City Program and the GVRD 45

Articles
Building Green Primer: Sustainable options keep growing
By Aaron Adelstein From BUILDERnews online, January 2004 http://www.nwbuildermagazine.com/article.asp?ID=66 Reprinted with permission. This is the rst in a series discussing green building topics and trends. Many builders distinguish themselves in the market by offering more sustainable options to a growing number of environmentally concerned citizens. This series aims to help builders keep abreast of issues in the sustainable market and track green products and services. The building market is changing. More and more homebuyers are realizing that simple product changes can greatly reduce the negative and long lasting impacts that construction has on our natural environment. The change is evident in the growing interest in greener products, services and designs than those typically on the market. Since 1995, 25 new residential green building certiers have emerged nationwide while certifying 18,000 homes, a topic that will be discussed in detail in next months green article.
Figure 13

In 1998 an American Institute of Architects survey showed that 75% of architects expected demand for green building to rise. They were rightthe number of certied green homes increase dramatically each year, as does demand for more sustainable product options. Homebuyers are translating an increasing environmental awareness into decisions about how they want to live and in what type of a home to buy. This subtle but perceptible shift in awareness is redening how homes, buildings and even communities are built. One might think of this change as a progression to a different paradigm of building, but once it is complete, the building industry will never be the same. Adding to the list Historically, building professionals offered a product marked by four value points: Price, performance, aesthetic, and service. These were the values that most customers were concerned about. The questions most often heard were: Can I afford it? How long will it last? Will it look good? How will I be treated over the course of the project?

46 Economics of Green Buildings

Now there is a fth point of value to be incorporated into the design and material selection of their projects: sustainability, or meeting consumer demand without exacting a toll future generations will have to pay for. Questions that may reect this value point may include: Where did these materials come from? Will the use of this product introduce toxic chemicals into a home? Is this product energy efcient? How much energy was used in the production and transport of this product? The 21st century consumer is weary of marketing messages that talk only about style and price; they want knowledge and real choices. Many want to have an active role in determining what will go into the homes they are buying or remodeling, and they want to base their choices on their values. Paul H. Ray, an author and demographer, categorizes this type of consumer as Cultural Creatives and estimates that there are 50 million Americans that fall into this categoryalmost one fth of the population that makes buying decisions based on moral and ethical values. A large percentage of this group feels that builders are not adequately working to incorporate their needs. In his book Ray states, Most Cultural Creatives do decorating and remodeling rather than buy a new house because builders dont really give them what they want in a new home. At the very base of this aware consumer is an environmental ethic in which the goal is to do as little damage as possible to the vital natural systems that sustain us. What the aware homebuyer wants varies, but usually includes longer lasting products, energy efcient design, use of renewable and resource efcient materials, and more attention to the presence of chemicals. Products that reect these values are widely available on the market. Products are often reclaimed from the demolition of buildings and made available for re-use. This reduces waste while at the same time reducing the need for the harvest or manufacture of new material. There are companies throughout the west that do demolition and urban salvage. Deconstructed buildings offer a numerous materials that can be reused; one example is large wooden beams that can be re-milled into framing material, ooring and trim. Some salvage companies offer raw products to builders while stores that focus on sustainable products offer nished
SFUs City Program and the GVRD 47

materials from reclaimed sources. There are many other green options that are also widely available. Certied wood cork, bamboo, wool carpeting and true linoleum are also resource efcient options that have a long life span. Products with recycled content such as sheathing, insulation, and composite decking reect the sustainability value point. Use of formaldehyde-free wheat board, low toxic paints and nishes, and arsenic free pressure treated wood help keep the introduction of toxic chemicals to a minimum. The list is endless: everything from 30-year roofs to the y ash concrete foundation appeals to the environmental ethic of the aware consumer. These types of choices can add value to the service a builder provides, making the homebuyer happier with the end result, and with the whole experience. Well delve into these products in more detail in future articles in this series. Misconceptions Using more sustainable designs, building methods, and products can also add value to the home, and many aware consumers are willing to pay for it. The good news, though, is that they dont always have to. There is a widely held misconception that environmental products are low on performance and high on cost. While this was true a few years ago, the increasing popularity and availability of these products are driving the prices down. Now many green products including most of those mentioned above are the sameor even belowthe cost of their non-green counterparts. It is important to compare products of like quality, and with a few years of production under their belts, many manufacturers have found a way to create much higher quality products, often higher than typical products on the market. Using price competitive green products can help defray the added cost of using more sustainable building techniques and bring down the overall cost of a more sustainable home. With 50 million voices wanting a new way to do business, and product choices that reect their ethical values, the industry is bound to change. Small changes can really have a dramatic impact on conserving energy and resource use. There are more than 76 million residential buildings and nearly 5 million commercial buildings in the U.S. today. These homes and buildings use one-third of all the energy consumed in the U.S., and two-thirds of all electricity. Buildings are by far the largest contributor to greenhouse gas emissionsmore than twice as much as cars. By the year 2010, there will be another 38 million buildings constructed. Beyond climate and energy issues, a standard wood-framed home consumes over one acre of forest, and construction waste totals an average of 3 to 6 tons.
48 Economics of Green Buildings

Figure 14

The trend to buy with the conscience can be seen across the spectrumfrom the growing popularity of socially responsible investing to the incredible growth of the organic foods industry. David Ritchey Johnstons book Building Green in a Black and White World is an excellent resource in better understanding this market trend. Residential and commercial green building certication programs such as the nationwide LEED program, Built Green in the Seattle area, and numerous others throughout the region are also helping market greener homes and buildings. The change has already started with designers, builders and material suppliers that are ahead of the curve meeting the demand for the added value point of sustainability. It will continue as an increasing number of building professionals help an ever-growing segment of the population achieve what they are looking for: peace of mind. By Aaron Adelstein From BUILDERnews online, January 2004 http://www.nwbuildermagazine.com/article.asp?ID=66

Top Five Bogus Reasons Not to Build Green


By Doug Seiter From Built Green ColoradoHome Builders, 1999 http://www.builtgreen.org/homebuilders/bogus.htm Reprinted with permission. Built Green Colorado has been around now for more than four years, and has grown from a local program to a statewide green building program that has received international attention. More than 100 builders around Colorado have signed on to the program, including large volume builders and builders of highend custom homes. None have found the requirements of the program daunting, and those who want to highlight more green building features in their homes have had no problem scoring more than 50 points on the Built Green Checklist (the highest score of 101 points was reached by Tierra Concrete Homes in Pueblo). Still, there are those who, for a variety of reasons, argue against participating in this building trend. Maybe some of their reasons are found here. It Costs Too Much to Build Green Lets get this one out of the way rst. Green building can apply to the most basic home. Green homes range from affordable urban inll homes to middle-class suburban homes to million-dollarplus custom homes. There are a couple of issues related to cost. Clearly, if one takes a standard home and adds green stuff to it, there will be added cost. In most cases, even this doesnt
SFUs City Program and the GVRD 49

Figure 15

have to be a deal-breaker. But if one is thinking green prior to design and construction there are numerous opportunities to shift costs, ending up with a higher quality home for the same cost. One program that has several participants in Colorado, Building America, helps builders save costs while producing a higher quality home. Another cost issue is added value. Many of the green building features make life easier, or are healthier for the homes occupants. Several popular green building features, particularly energy and water efciency features, actually pay back the investment over time. How many hot tubs do that? A study by the Residential Energy Services Network (RESNET) and the EPA reported that for every one-dollar decrease in a homes annual utility bill due to energy efciency, the market value of that home increases twenty dollars. Of all the available new home options, which ones actually pay dividends? And as if this werent enough, there are mortgage products available (and have been for more than a decade) that allow added energy efciency features without affecting the ability of a buyer to qualify for the home. Fannie Mae unveiled their pilot Green Mortgage product last October, and several lenders are now offering even better mortgage incentives for Built Green Homes. The best way to take advantage of these products is to have a home energy rating done by E-Star Colorado. E-Star issues a certicate that details the energy costs and savings, and has an ongoing relationship with lenders around the state. Im Building What the Market Wants This is one of my favorites. What it tells me is that people want to live in homogenous communities of huge houses on small lots that require getting in the car to go virtually anywhere; houses that cost two to three times what they should cost just to maintain comfort, and that are now requiring air conditioners to make up for poor design and unfortunate orientation of the windows; and houses whose indoor air quality can be much worse than the air outside. I am not aware of one truly green community, complete with energy-efcient, water-conserving clustered homes, narrow streets, pedestrian-friendly routes to nearby grocers and retail stores, that had any trouble selling homes. Part of the industrys responsibility in green building and development is to make these choices available. And thats exactly what is happening through Built Green. A working group of planners, builders, green building experts, developers and government representatives are crafting a Built Green Communities Checklist that will address many of the green community issues beyond just the home.
50 Economics of Green Buildings

Its Too Much Trouble I suppose this one is relative. It depends on the amount of time spent versus the value to the builder. But most of the Built Green members will agree that making green choices doesnt have to create a lot of brain damage. And as buyers respond to the visible efforts to build green, any additional effort should be rewarded. Built Green Colorado offers educational seminars, training and technical resources to its members. Beyond the direct services of Built Green, anyone with a computer and Internet access is seconds from a world of green building resources. Nobody Really Cares about Green Homes Really? I wonder which nobody were talking about here. The surveys and marketing studies have consistently shown a high level of interest in the public regarding environmental quality, energy efciency, water efciency and indoor air quality. Mainstream publications are regularly carrying stories and news items on a variety of green building issues, and one mainstream magazine, Natural Home based in Loveland, CO, is on newsstands all over the country. A clear majority of Americans consider themselves environmentalists, and while energy efciency or Built Green may not be the top reason for purchasing a home, both can be deciding features. Im Taking a Wait and See Approach More than 6,000 homes have been registered under the Built Green program. National builders and building suppliers are supporting the program in a big way. Waiting to see if green building is worth doing means waiting to get on the learning curve. Green building is already gaining ground in the industry, and if past NAHB President Charlie Ruma was correct in his assessment, builders who arent building green in ten years will be out of business. In the meantime, there are promotional benets to be gained now. Those builders who consider themselves green without the association with Built Green Colorado are missing out on an ongoing promotional campaign that will send potential buyers through the Built Green homes rst. Built Green Colorado Ties it all Together Colorado builders have a clear advantage over most areas in the US with a statewide program that promotes green building benets to new-home buyers. Built Green Colorado is an industry initiative that is working to provide practical, cost-effective solutions to environmental challenges. Its mission is to encourage, through a combination of marketing, education and technology transfer, the voluntary integration of building products and practices that demonstrate energy, water and natural resource efciency; sound economics; and healthy human environments. Check out the Built Green Colorado website at www.builtgreen.org. Built Green Colorado can help builders, Realtors and building suppliers get the
SFUs City Program and the GVRD 51

tools they need to integrate green building with their business. Use the Built Green logo as a sign of your commitment to a healthier community and a better world. Doug Seiter contributes to this publication on environmental building and energy efciency issues, and is former State Coordinator for Built Green Colorado. He can be reached by e-mail at seiter@earthlink.net. This article was from Built Green ColoradoHome Builders, 2003 http://www.builtgreen.org/homebuilders/bogus.htm

A Blueprint for Green Building Economics


By David Gottfried From Environmental Design + Construction, 07/11/2003 http://www.edcmag.com/edc/cda/articleinformation/features/ bnp__features__item/0,,103638,00+en-uss_01dbc.html RSiCopyright License Number: 3.5223.632730-44391 Green building has rapidly been gaining momentum as a design protocol and measurement standard for a buildings environmental performance. Though many precepts of sustainable building were established thousands of years ago, it has only been dened and integrated into the global building industry since the late 1980s. The various country green building rating systems provide the best denition of a green building. In many countries, green building activity initiated in the public sector. The cost of funds for government is low, and the time horizon for the average life of a public building is long. The buildings are typically owned, nanced, operated and occupied by the governmental agency. Wearing these multiple hats makes the imperative to design buildings to maximize their performance and occupant health on a long-term perspective an easier sale than in speculative development. Green building is however actively gaining momentum in the private sector, with rms like Ford Motor Co., Toyota, Honda, Pottery Barn and Hines Development undertaking projects. As the strong economic benets and minimal costs are more clearly delineated, the barriers are removed. More than half of the U.S. Green Building Councils Leadership in Energy and Environmental Design Green Building Rating system (known as LEED) projects are privately owned. Most include buildings for private users, and two include speculative development projects. Following is a blueprint of the economic opportunities and
52 Economics of Green Buildings

Figure 16

rationale for green building in the private sector. Project Cost There are three areas contributing to a projects total project cost: site acquisition, direct and indirect construction costs. 1. Site Acquisition Costs: It is important to purchase a property that will enhance the ability to create a high-level green building. The LEED system, for example, provides credits for proximity to public transportation, urban inll and reduced site disturbance. Solar access is important, as well as natural ventilation potential and good ambient air quality. Sensitivity to water quality and run off minimization is also critical. If demolition is required, it is important that a majority of the materials are diverted from the landll. Some systems reward building reuse and browneld redevelopment. It is not established that a green site is more expensive, rather a matter of careful inspection when looking at prospective properties. There are case studies showing that construction and demolition waste diversion from the landll is more cost effective. Some cities even provide a density and/or height bonus for green building. The increased space can more than compensate for any extra cost of developing a green building. 2. Direct Construction Costs: There are numerous examples that green building does not cost more. The new DPR Construction Sacramento building is slated to achieve a LEED Silver rating at an added cost of less than 1 percent. DPR Construction estimates the payback period to be less than two years. The City of Seattle originally allocated a 4 percent cost increase to achieve a similar rating, but its extensive project experience has effectively lowered the cost increase to below 1 percent. The City of San Diego Ridgehaven Building achieved an energy efciency improvement from the Energy Code requirement of 53 percent. The incremental add was about 4 percent, however most of this increased cost was funded by the local utility. The internal rate of return on the net investment was 57 percent. The net cost for green did not take into consideration signicant downsizing of the mechanical system and similar reductions in the quantity of lighting xtures and sizes. Therefore, the overall net cost was zero. 3. Indirect Construction Costs: As green building continues to expand, almost all architectural and engineering rms are
SFUs City Program and the GVRD 53

embracing the eld. Green building is rapidly becoming part of standard practice, as owners increasingly require the methodology as part of the buildings design. During the early years of the eld, design professionals charged a premium for providing green building services. However, as the green building market rapidly expands, the extra fees charged for these services are declining. Some rms are now offering them for free this will soon be the norm. Another indirect cost may be that of the certication itself. In the US, for example, if a project is formally certied by the USGBC, fees are charged depending on building size. Still another indirect cost of construction is tenant lease-up contingency. It has been shown that a green building receives added publicity. Some projects, like New Yorks Four Times Square, attracted hundreds of articles. This can result in a higher level of perceived building value. Education of brokers and their tenants on the merits of green building can result in a faster building lease-up period. The green emphasis can also aid in negotiations with local governments on building permit and land use approvals, lessening the land carry costs. Income & Expenses Income: Because green building is so new, sufcient data has not been collected to show that it can increase rental rates. However, it is logical that a building is worth more if it has lower operating expenses for the tenants, improved occupant comfort and individual control, better air quality and other positive tenant features to be considered in setting the rental rate. It is a matter of marketing by the owner and broker to communicate this enhanced value to prospective tenants. There is enormous precedent in other areas where the consumer pays more for higher value. We do this every time we buy a car or appliance. This is also true for ofce and retail space, and even housing. An A level building rents for higher rates than a B building. As green building is adopted into mainstream, it will become part of the denition of an A building. Another income benet associated with green building will be lower vacancy rates. Higher quality buildings historically have shown lower vacancy rates. Tenants prefer to renew their leases because they appreciate a building with enhanced comfort, health and productivity for their employees. Proximity to public transportation is another benet, as well as showers and bike racks at ofce buildings.
54 Economics of Green Buildings

Expenses: It has been demonstrated that a green buildings operating expenses are signicantly lower. Energy can be reduced from 30 to 50 percent. The amount of water consumed can be decreased by 30 percent or more. Repairs and maintenance can decrease, as well as landll charges associated with a lower level of waste. Improved indoor air quality can lead to reduced owner liability. This contributes to even lower insurance premiums. In addition, it is anticipated that insurance companies may soon provide an insurance cost reduction for green building. In time, they may also make certication a prerequisite for obtaining insurance. Green building is also an effective risk management strategy for property managers. The net result of higher income and lower expenses is improved project net cash ow. Financing & Equity: A greening building, with increased building net operating income, will achieve a higher building valuation. This can result in a higher loan amount and future sales price. Project equity requirements are accordingly reduced. Additional debt however does increase the owners risk. In time, it is envisioned that banks will offer green loans based on certication, lowering the interest rate and/or increasing the allowable loan to cost or value ratio. Once this becomes the norm, some banks may progress to ultimately require a minimum green rating in order to qualify for the loan. This will accelerate green building more than other measures. Some projects are beginning to attract investors who are interested in participating in a green building project. They understand the opportunity for improved nancial return along with a social dividend. In times when it is difcult to attract equity for a project, green buildings will have an advantage. Green buildings can qualify for subsidies and tax credits. The State of New York passed the rst green building tax credit. Some utilities offer rebates and green building nancing. Return on Equity/Project Valuation: The net result of increased income, lower expenses and any reductions in nancing is a more protable building. As property appraisers learn more about green building, they are likely to incorporate its relative greenness in the valuation. Buildings with a green rating may receive a superior capitalization rate than the non-green building. Even a 1/2 percent of capitalization rate improvement can equate to signicantly higher building value upon sale or renance. Adding this amount to the increase associated with an improved net operating income can improve the overall return on investment.
SFUs City Program and the GVRD 55

Conclusion When analyzing the decision to go green, the question should not solely be the impact on rst cost, but the overall change to the buildings return on investment. This is best reviewed as a projected net present value or internal rate of return over the life of the asset. Green building is an economic responsibility to our investors and a social one to society. It is rooted in the denition of value, quality and performance over the life of the asset. David Gottfried is the President of WorldBuild Technologies Inc. He is also the founder of the USGBC and World Green Building Council, and also serves on the Environmental Design + Construction Editorial Advisory Board. This article was extracted from Environmental Design + Construction, 07/11/2003 http://www.edcmag.com/edc/cda/articleinformation/features/ bnp__features__item/0,,103638,00+en-uss_01dbc.html

Green Building Trends: Mainstream Builders See Value of Building Green


By Richard Dooley, NAHB Research Center From Media Resources-NAHB Research Centre, 2003 http://www.nahbrc.org/tertiaryR.asp?DocumentID=3724&Catego ryID=1676 Reprinted with permission. Green building just makes sense. It makes sense from an environmentally conscious perspective and it makes sense from a business perspective, said Terre Belt, president of the NAHB Research Center. It particularly makes sense when home builders, remodelers, and manufacturers realize that green building reaches into every facet of new home construction and links a myriad of diverse building components in a solid chain. This message is stated in the booklet Building Greener, Building Better-The Quiet Revolution (download free from www.nahbrc.org/greenerbetter). This publication should have a profound effect on the awareness by mainstream builders of what is involved in green building and the opportunities that exist in this arena. Ron Jones, former chairman of the NAHB Green Builder Subcommittee, said, No one builder can do everything, but everyone can do something. Recognize the opportunities and then customize your efforts to match your situation. Jones emphasized that this applies to all types of builders, not just a few small builders pioneering the concept of green
56 Economics of Green Buildings

There is increasing evidence of how the principles of green building design can increase the productivity and satisfaction of workers and signicantly improve the bottom line of businesses.
William Maclay. From the article, Producing Value in the Workplace through Green Building Design

building. Mainstream builders are coming to terms with what they have intuitively known all along: that responsible and careful use of all building resources is essential if we intend to build into the future. While denitions for building green vary somewhat, according to Belt, most would include a discussion of goals aimed at efcient use of land, enhancing energy efciency, water conservation, indoor air quality, and resource conservation. Builders in different areas of the country may choose to emphasize one or more of these major subject areas. Not every builder in every city has to do green building in the same way, or to the same degree as another builder in the same area. In fact, many builders today may already be building green to a degree they dont even realize, according to David Johnston, president of Whats Working. In discussing green building, Johnston said, Because most green building products were developed to function better than their conventional counterparts, many of these products are already in use, and he cited engineered lumber products as an example. You can build green, but if you dont tell your customers the benets, they may never know and may never care. Clearly there is a market just waiting for green building. Johnston concluded, Research reveals a strong segment of the population is ready to buy environmentally sound products. To start meeting this growing market demand, Johnston advised builders to start where their market is now and work from there. If you start gradually, you wont make expensive mistakes, and you will learn what does and doesnt work for you. Green building is an evolutionary process that takes time to develop. Get comfortable with each new set of products. As the interest for green building programs increases among consumers, environmental organizations, and local governments, it is critical for builders who are interested in building green to tap into existing market demands for housing generally. Green-minded builders should try to make the link between resource efciency and: Lower operating costs: Consumers are obviously interested in lower monthly utility bills so homes that require less heating and cooling and use less water are at the same time highly marketable and resource-conserving. Increased comfort: Homes that are resource-efcient have more even temperatures throughout the home, with less drafts and better humidity control. Mainstream homebuyers are much more
SFUs City Program and the GVRD 57

likely to buy green if it doesnt mean sacricing comfort Increased resale value: More and more homeowners are reporting better selling value with documented lower monthly utility bills-a green home can provide this. Improved environmental quality: Builder attention to moisture control construction details, low-VOC paints, and air exchange/ ltration can contribute to a more comfortable and healthy indoor environment, which a lot of consumers are looking for these days. Builder attention to overall resource-efciency can also contribute to a better local environment. Even if a prospective homebuyer is not looking at a home solely because it is environmentally-friendly, they will not rule out a home simply because it is. An upcoming opportunity to nd out the current state of green building and land development will be at the 2003 National Green Building Conference in Baltimore, Maryland, March 31April 1, 2003. As in previous years, the 2003 conference will offer a full slate of educational sessions, building product demonstrations and exhibits, and tours of local green buildings and developments. Among the techniques that are demonstrated and explored at the conference are designs and materials that help lower monthly utility bills, more durable building components that require less upkeep, and lawn and landscaping techniques that require less watering and weeding. At the opening session of the 4th National Green Building Conference in Seattle, NAHB president Gary Garczynski told attendees, In 10 years there will be no need for a green building conference... green building will be a way of life for builders and developers. You can nd some basic tips on getting started with green building from the NAHB Research Center website, www.nahbrc.org. For more information on green building, contact Richard Dooley at the NAHB Research Center by phone at (301) 430-6242 or by email at rdooley@nahbrc.org. Information on the 5th Annual National Green Building Conference is available on the Research Center website - just click on Green Building. By Richard Dooley, NAHB Research Center Taken from Media Resources-NAHB Research Centre, 2003 http://www.nahbrc.org/tertiaryR.asp?DocumentID=3724&Categ oryID=1676

Figure 17

58 Economics of Green Buildings

Producing Value in the Workplace through Green Building Design


By William Maclay From Valley Business Journal, June 2002 www.wmap-aia.com Reprinted with permission. At some time you have probably heard or read about green buildings, sustainable design, or healthy buildings. You might have wondered if it is a new fad or experimental idea dreamt up by an environmentalist to save the planet. However there is increasing evidence of how the principles of green building design can increase the productivity and satisfaction of workers and signicantly improve the bottom line of businesses. In the article that follows we will discuss what green buildings are, provide some international and local examples of green buildings, and suggest some principles shown in the examples. What is green building design? So what is green building design and how can it be effectively used for the maximum benet? I think of green buildings as buildings that are healthy, productive and satisfying to be in and work in and which minimize negative impacts on the environment and ecosystems. Green building design integrates human activity and biological needs, building form, materials and technology, mechanical and electrical requirements, environmental impacts, and climatic background. Examples of how green design can add value In 1978 the NMB bank decided to build a new ofce headquarters. Although it was considered a very conservative bank it decided to build a green building. Instead of a fat and wide building with large open ofce areas with little access to view, light, and air, they built a narrow building with clusters of small work areas for different work groups with access to light, air, and view. In the center of the building they designed plant and light lled atriums where stairs are located. Flowing water in the atriums provides gentle sounds of nature and provides humidity. In this building the design of walls, roofs, and mechanical systems minimize energy consumption while providing fresh air. The payback from energy savings for additional capital costs for the green features was less than three months. However, of much greater savings to the bank was reduced absenteeism of 15% which had a much more signicant impact of their bottom line. The USPS installed new skylights and energy efcient lighting in their existing mail processing facility in Reno, Nevada. In tracking their
SFUs City Program and the GVRD 59

Green buildings save money by reducing energy costs...With todays stock market climate, there are many energy investments that provide a better return than the stock market.

error rate in processing mail, they documented a 25% decrease in their error rate after renovations compared to before the renovations. This was the lowest error rate and highest productivity rate in the western United States. Productivity gains were worth $400,00 - $500,000 per year. Productivity gains paid for the entire renovations in less than one year. A manufacturing company near Arlington, Vermont that we worked with was committed to making a quality work environment and minimizing energy costs. We proposed heavily insulated walls, windows on the south and a roof monitor, a high efciency boiler, ventilating, and heating systems to allow them to double their space, increase their amount of fresh air substantially to eliminate process air pollutants while overall energy costs increased less than 15%. At the same time the use of windows for natural light and view has improved the quality of the work environment and their employees look forward to being at work in pleasant place. An engineering ofce in Norwich, VT worked in small teams and wanted a primary space for lunch, intermittent meetings during the day and in the evenings. This was in an existing building which had a large oor area. We designed the ofce space to have their meeting/lunch space in the middle of the oor area with plants. This space was ooded with natural light from windows in the roof to create an ambience and minimize electric consumption for lighting. In addition to reducing energy consumption signicantly, we provided a space which is the heart of their workspace and which affects the feeling of the entire project. Suggestions for incorporating green building practices in your workplace From these examples, there are a few principles that might be helpful in other Vermont ofce and manufacturing buildings: Generate a heart in your work space: A pleasant core area can help bring people together in your business to exchange ideas, minimize circulation, and focus your budget on a part of your building that employees and visitors can enjoy. Use natural light, plants and/or water to create a pleasant ambiance. Use natural daylight: People love the changing quality and mood of natural light. Scientic research has also demonstrated that natural light increases accuracy in detailed work and reduces eyestrain associated with articial lighting. For efcient use of natural light, place windows high in walls or in the roof to get distribution throughout your space, not just at exterior walls. Conserve energy and resources: Insulate the exterior shell of

William Maclay. From the article Producing Value in the Workplace through Green Building Design

60 Economics of Green Buildings

your building wall and install efcient mechanical and electric systems as this will be difcult and costly to do later. Ask your consultants to give you analysis of return on investment for energy conservation to save you money every year. Use local materials and materials that take less energy to produce. Provide high quality fresh air: In Vermont many buildings have inadequate fresh air which may make your employees tired and promote sickness. Opening windows and fresh air from ventilation systems will make happier and healthier employees. Conserve and enhance the environment: Retain and maintain existing site features such as wetlands, wildlife areas, and trees. Use site planning and landscaping to maintain or increase site diversity and provide a pleasant environment for employees. Quantifying the value of green buildings Green buildings save money by reducing energy costs. However, there is a capital expense to reduce ongoing energy costs. Both simple and complex analysis of payback for energy savings and return on investment can be calculated to determine what energy improvements are a prudent investment. With todays stock market climate, there are many energy investments that provide a better return than the stock market. In addition to energy savings, green buildings can provide much larger savings through increased workforce productivity. When total building costs are included in a 30-year timeframe, the initial building construction cost for ofce buildings is typically 2%. All operating and maintenance costs are 6%. Labor costs are 92%. Thus in considering costs over the life of a building, the rst cost is insignicant and operating and maintenance costs are relatively minor. Most importantly a small increase in productivity can have a very signicant improvement in the bottom line. While this increase in productivity in green buildings is more difcult to accurately quantify, there is increased evidence that there are substantial productivity increases. A recent research study of a new green ofce and manufacturing facility built by Herman Miller documented three causes for increased productivity for employees compared to their previous facilities: Employees felt healthier and had less accidents and illness. Employees felt more attentive and clear, able to remember, and showed improvement overall in job performance. Employees felt greater satisfaction, motivation, enjoyment, and overall emotional well-being. Researchers were able to document connection between these
SFUs City Program and the GVRD 61

three areas and specic features of the building. For instance, they observed a connection between sickness and indoor air quality. They documented a connection between attention and clarity and daylight, acoustical privacy, and personal control of spaces. They noticed a correlation between overall well-being and connection to views and nature, temperature and environmental controls, and general aesthetics. William Maclay Architects & Planners, P.C. is an architecture and planning rm specializing in the design of buildings incorporating energy and resource conservation, optimal indoor air quality, healthy building design technologies, and environmentally responsive land use planning. In over 30 years of experience, the rm has been acknowledged for excellence in design and environmental innovation with awards, exhibits, television appearances, and book and magazine publications. This article was taken from Valley Business Journal, June 2002, www.wmap-aia.com

62 Economics of Green Buildings

Book Excerpts
Rocky Mountain Institute-Buildings & Land
The following two passages are excerpted from the book, Green Development: Integrating Ecology & Real Estate. John Wiley & Sons, 1998. By Alex Wilson, Jenifer L. Seal, Lisa A. McManigal, L. Hunter Lovins, Maureen Cureton, & William D. Browning. Retrieved from http://www.rmi.org/sitepages/pid222.php Reprinted with permission. 1. The Market for Green Development A 1995 Roper Starch Worldwide poll (the annual Green Gauge done for Times Mirror) found that about three-quarters of Americans describe themselves as environmentally active or sympathetic, while 69 percent think environmental protection and economic development go hand in hand. Another recent Roper study commissioned by S.C. Johnson found that Americans increasingly understand the links between the natural environment, the social environment, and overall quality of life. While they might not understand exactly what sustainable development means, two-thirds of Americans agree with the idea that these three things are inextricably linked and none should be sacriced. Consumers continue to support environmentally responsible products and manufacturing practices, but does this extend to the real estate market? Developers and nanciers often say there is no demand for green real estate, or they would be building it. But as management author Tom Peters points out, Your customers are a rearview mirror. Customers respond to what is available on the market, and they dont always know what else might be possible. Conventional market research, by focusing on what already exists, often asks the wrong questions. Consumers are not asked if they would prefer alternatives that are not readily available. Discerning market demand is a two-way streetcustomers need education about options available to them, while the building industry needs assurance that customers will indeed support greener projects. Market surveys have shown that a surprising number of potential home buyers are willing to pay a premium for green or community-oriented amenities. The city of Tucson, Arizona, has been involved in promoting the concept of Civano, a planned 916acre, mixed-use, environmentally responsible development. The city surveyed 300 heads of households and found that the concept of an energy-efcient community, like their vision for Civano, held a great deal of appeal for six out of ten respondents. Over 80 percent said they would be willing to pay a premium of
SFUs City Program and the GVRD 63

$5,000 to $10,000 for a home with energy and community features if costs were recovered through lower utility bills. This level of interest came as a surprise to local builders who, according to John Laswick of the citys Economic Development Ofce, have historically viewed such developments as a tiny, and probably aky, market niche. After years of battling with environmentalists, it still has not occurred to many of them that environmentalists live in houses too.
Figure 18

A 1994 survey by American Lives, a market research rm in San Francisco, found that 78 percent of 800 consumers who bought or shopped in master planned communities cited lots of natural open space as essential or very important. Other important factors that affected their purchasing decisions included walking and biking paths, ease in meeting people within the community, and public gardens with native plants. In Dallas, average turnover of rental housing is high because peoples needs arent being addressed. Columbus Realty Trust investigated whether it could justify investing in the in-town rental housing market. So, it surveyed Dallas-Fort Worth residents, asking respondents whether they would prefer renting in a suburban setting or a mixed-use urban setting. Columbus was surprised to nd that more than 50 percent chose the urban form although no developer was building for that market at the time. By mid1996, the company had completed almost 700 rental units just north of downtown Dallas and another 370 units in Uptown Village, according to president Robert Shaw. They are experiencing 97 percent occupancy and have added more than $38 million to the local tax basein a city with no tradition of in-town rental housing. The average rent in the Columbus projects is $700, while average rent in the entire Dallas area is $530. Furthermore, turnover in their in-town units has been 25 percent lower than turnover in the local market in general. Given the growing interest in the types of projects described in this book, there is almost certainly far more demand than can be met by whats available today, and there are few competitors. In February, 1995 Builder magazine noted someday these principles will shape every new community, and proled a number of developers and builders leading the green crusade. Those with the foresight to enter the arena now will benet in many ways: by serving as a model, by increasing prots, by generating publicity, by capturing market share, and by creating developments that they can feel good about. So Why Arent All Developments Green? If green developments are so popular, so protable, and so marketable, why arent all developments green? There are

64 Economics of Green Buildings

many reasons, but the biggest is probably lack of awareness of the opportunities. There remains a widespread lack of understanding about what green real estate development is, the market for it, why it is benecial, how to do it, and why it makes so much sense nancially. Green developments do take more time up front. There is a signicant learning curve required of leaders in any eld, and that is especially true with green development. But todays pioneers, in breaking new ground, are nding that their up-front investment in education, planning, and design is saving considerable time and money down the line, while creating a superior, more marketable product. A very signicant barrier to green development is nancing. Financial institutions are conservative by nature and averse to risk. Anything new is considered risky. Chapter 8 will cover some solutions to this problem, and stories of developers who have surmounted it, but it is still a very real hurdle for the green developer. Sometimes the barrier to green development is nding a willing partner. Visionary developers, for example, may want to put their knowledge and ideas to work but lack partnersdesigners and nancierswho can be persuaded to share their vision. Financiers are conservative by nature and will be hesitant to invest in a developer without a successful track recordno matter what the nature of the project. Adding innovative or untested green features can further dampen their enthusiasm. Other developers are waiting to see results of earlier projects before jumping into the fray, or they are simply unaware that it is possible to develop in a way that is economically and environmentally sound. Nonetheless, an increasing number of developers, builders and architects are getting involved with green development and nding out that the benets are substantial. Many of those who would like to develop projects that are more environmentally responsive lack readily available information on materials, systems, techniques, and technologies. Fortunately, this information is becoming more accessible with many good publications and Internet sites. As with most learning experiences, starting out is the hardest part. Learning from the experiences of others is one of the best ways to overcome these barriers to green development. By seeing and hearing how these projects were envisioned, nanced, built, and marketed, developers can gain condence that this approach is possible. That is the purpose of this book: to tell the
SFUs City Program and the GVRD 65

Undertaking a development in an environmentally responsible manner can reduce capital costs in a number of important ways: costs of infrastructure...can be lowered by relying on the lands natural features; mechanical systems can be downsized... through smart energy design; and approvals can be expedited if opposition to a project is reduced.

stories of some of the rst successful efforts at greening real estate development. 2. Doing Well by Doing Good: The Benets of Green Development There is widespread perception in the development industry that it is difcult to make money if a project is going to concern itself with environmental and social issues. Many developers fear that following a green agenda will delay project schedules and raise costs. The reality, however, is that well-executed green development projects, such as the Inn of the Anasazi and dozens of others proled in this book, perform extremely well nancially. In fact, even though many of the leading-edge developers featured here have strong environmental backgrounds and ideals, the nancial rewards of green development are now bringing mainstream developers into the fold at an increasing pace. It is possibleindeed it is the normto do well nancially by doing the right thing environmentally. For example, project costs can be reduced, buyers or renters will spend less to operate green buildings, and developers can differentiate themselves from the crowdgetting a big marketing boost. These and other benets of green development are introduced below and are addressed in greater detail throughout this book. Reduced Capital Costs Undertaking a development in an environmentally responsible manner can reduce capital costs in a number of important ways: costs of infrastructure, such as storm sewers, can be lowered by relying on the lands natural features; mechanical systems can be downsized or even eliminated through smart energy design; and approvals can be expedited if opposition to a project is reduced. Faster approvals reduce carrying costs. Land development and infrastructure costs for the environmentally sensitive development on Dewees Island, off the coast of Charleston, South Carolina, were 60 percent below average, because impervious roadway surfaces and conventional landscaping were not used. Residents get around this car-free island by walking or using electric golf carts on the porous sand roads. Common areas on the island are landscaped with low-maintenance native vegetation. When you dont have all these manicured landscapes and paved roads, you end up with enormous reductions in infrastructure investment, notes John Knott, chief executive of Island Preservation Partnership, the islands developer. Reduced capital costs mean that Dewees investors are enjoying a higher return on investment thanks to lower equity requirements.

Excerpted from the book Green Development: Integrating Ecology & Real Estate. By Alex Wilson, Jenifer L. Seal, Lisa A. McManigal, L. Hunter Lovins, Maureen Cureton, & William D. Browning.

66 Economics of Green Buildings

The Body Shop, an international, cruelty free cosmetics chain, reduced site costs for its U.S. corporate headquarters in North Carolina by reusing an abandoned building that had adequate parking and vegetation already in place. They also saved money by reusing building materials and selling some for salvage. In British Columbia, the architects of the University of Victorias Engineering Laboratory Wing were able to cut capital costs signicantly by eliminating the perimeter heating system in the 127,800 square-foot project. They did this by designing a high performance building envelope. The project came in under budget. In Davis, California, developer Michael Corbett saved $800 per lot in the 240-unit Village Homes subdivision by using natural swales for stormwater inltration in place of an expensive storm sewer system. The savings were put into landscaping for common areas and other amenities that have made the subdivision extremely popular since its construction in the late 1970s. In fact, properties at Village Homes command a substantially higher price, $10-25 more per square foot, than those of surrounding subdivisions, and homes sell faster when they come onto the market. Prairie Crossings, a 667-acre residential development near Chicago, is saving even more. By designing the infrastructure to reduce environmental impacts, total savings of $1.4 million, or $4,400 per lot, were achieved. This was accomplished by designing streets that are eight to twelve feet narrower than normal, by minimizing impervious concrete sidewalks, and by using vegetated swales and detention basins for stormwater inltration rather than conventional storm sewer systems. As with Village Homes, the infrastructure savings were spent to enhance the common open space and other project amenities. Reduced Operating Costs Most of the projects proled in this book have far lower operating costs than conventional projects as a result of their greater emphasis on resource efciency. Savings are usually easiest to quantify with energy, but can also be realized through reduced water demand, lower maintenance requirements, and a reduction in waste generation. With businesses, savings in operating costs ow directly to the bottom line, increasing net operating income. This in turn can lead to higher return on investment and building valuation. Operating savings that are passed on to the tenant can result in favorable leasing arrangements and higher occupancy or absorption rates.
SFUs City Program and the GVRD 67

Figure 19

By incorporating energy-efcient measures, the Denver Dry Goods building is saving at least $75,000 per year in operating expenses, increasing the buildings value by $750,000 when capitalized. In Vancouver, British Columbia, the developer of a 55,000 square-foot mixed-use development known as 2211 West Fourth saved $57,000 on energy in 1995 through careful energy design and use of ground source heat pumps. The savings from the heat pumps are passed along to retail and ofce tenants, while residential occupants of the third- and fourth-oor apartments receive free hot water during a signicant portion of the year. These operating cost savings enabled the landlord/developer to increase rents over the long term, thus sharing in the benet. Amory Lovins, co-founder and Research Director of the Rocky Mountain Institute, has studied many buildings that have incorporated energy efciency measures. He has found that avoidable present-valued energy costs can be comparable to a buildings entire capital cost and can enhance its market value accordingly. Reduced operating expenses for a building can also benet the developer by reducing equity investments. Even if energy efciency features in a commercial building cost more, the owner may not have to invest more, because the measures increase the value of the project, and construction loan levels are based on building valuation. Often, the energy features do not increase capital costs (and the loan amount). In this case, cash ow will improve because cash ow is equal to net income less loan payments. Marketing Benets: Free Press and Product Differentiation Developers of projects proled in this book have derived enormous marketing benets from of their attention to environmental and community issues. The developer of 2211 West Fourth, Harold Kalke, saved $850,000 in real estate agent leasing and sales fees by doing direct marketing rather than opening a sales center or hiring agents to lease retail and ofce space and sell apartments. This was possible because of the central location with a lot of foot trafc as well as extensive media exposure. The Inn of the Anasazi has reaped free and unsolicited coverage from such major publications as Food and Wine, Traveler, and Travel and Leisure. This coverage increased the Inns business with travel agencies and individual travelers by about 20 percent over their projections. Dewees Island has generated an estimated $5 million in free press, greatly in excess of what was anticipated. Stanley Selengut, developer of three eco-resorts in the U.S. Virgin Islands, notes that press creates occupancy...so isnt it more sensible to spend
68 Economics of Green Buildings

money stretching the envelope of sustainability rather than on four-color ads competing with everybody else in the industry? Green developers have found over and over that the media likes what they are doing and will promote it. Positive press coverage is the best kind of promotion available. Valuation Premiums and Absorption Rates In some markets, buyers will pay substantial premiums to be part of a development with identied green features. Harold Kalke attributed the outstanding absorption rates of 2211 West Fourth in part to its green features. Prior to completion, 100 percent of retail space and 85 percent of ofce space were leased, with contracts signed for 85 percent of residential space. His 12.3 percent return on investment was one-third-again higher than that of conventional retail/ofce projects in his market. Kalke attributes these premiums to positioning the project as a green project, coupled with quality construction and integration of the project into the community. In markets that cant afford price premiums, green developments may enjoy faster lease-ups or sales rates due to differentiation from the competition. Production home builder McStain Enterprises is developing Greenlee Park, 170 units of affordable green homes in Lafayette, Colorado. Ideas were tested and rened on a demonstration home until the development team was able to get the total cost for green features (including replacement of the furnace with a heat recovery system) down to 1.5 percent of a homes total cost. Environmental consultant David Johnston pointed out that this cost is in the realm of a cabinet upgrade. Prior to Greenlee Parks grand opening, McStain Enterprises had already pre-sold 75 percent of the rst phase. Streamlined Approvals Gaining early respect and support from a community can greatly speed up approvals for a project. The developers of Central Market, a grocery store in Poulsbo, Washington, say that the decision to enhance an on-site wetland and offer it to the city as a park not only reduced maintenance costs, but also avoided delays by generating strong community support. Sam Clarke, Executive Partner of the Hattaland Partnership, noted that the city of Poulsbo, and key community leaders, are well aware of our workthis establishes trust and respect, which translate eventually into nancial advantages. The environmentally sensitive restoration of the Denver Dry Goods building in downtown Denver garnered enormous community support that helped the developers obtain nancing and approvals for this mixed-use, adaptive reuse of an historic building.
SFUs City Program and the GVRD 69

By meeting directly with groups that had opposed any development of Dewees Island, developer John Knott was able to address their concerns and gain considerable support for the project, avoiding months, if not years, of delays. Streamlining approvals and avoiding legal delays, in fact, is becoming one of the most important drivers for green development. The February, 1995 issue of Builder, the ofcial magazine of the National Association of Home Builders, recognized this in pointing out that building in an environmentally responsive way can hasten the development timeline, saving money in the process by reducing carrying costs. The same argument is increasingly seen in the pages of Urban Land, the magazine of the Urban Land Institute, the leading association of real estate developers. Reduced Liability Risk By taking a responsible attitude toward the environment and occupants, green developments are sometimes able to reduce the risks of litigation, liability, and even such disasters as res and oods. The U.S. Environmental Protection Agency (EPA) has ranked sick buildings as one of the top ve environmental threats to human health. EPA studies have found that indoor air is generally two to ve times more contaminated than outdoor airin some cases, up to 100 times. According to a study by the American Medical Association and the U.S. Army in 1990, health problems caused by poor indoor air quality (IAQ) cost 150 million workdays and about $15 billion in lost productivity each year in the U.S. An increasing number of building occupants are ling lawsuits claiming they are suffering from sick building syndrome (SBS). Unable to establish that any particular party is at fault, plaintiffs often sue everybody involved, including building owners, architects, contractors, and manufacturers of products used in buildings. Ironically, a number of new county courthouses have been involved in high-publicity lawsuits over SBS. In 1995, a state jury awarded Polk County in Florida almost $26 million to enable it to correct design and construction aws in its eight-year-old courthouse. The jurys verdict was directed against Reliance Insurance Company, which underwrote $29 million in coverage for Barton-Marlow, the general contractor for the project. (The actual renovations ended up costing $37 million.) On the other hand, a 1996 jury found Dupage County, Illinois, responsibleas the building ownerfor health-related complaints at its $53 million courthouse, calling the problems a result of improper operation and maintenance. The fact that some courts have held builders or designers liable for design aws,
70 Economics of Green Buildings

while others blame the building owners for improper operation, highlights the importance of addressing indoor air issues in all stages of building design, construction, and operation. Some building industry professionals believe the current number of IAQ-related cases is just the tip of the iceberg. Lawrence S. Hirsch, an IAQ litigation expert with the Washington D.C.-based law rm Cadwalader, Wickersham and Taft, noted in a Building Environmental Report, Complaints concerning the quality of indoor air can affect the nancial health of even the most prosperous owners. Building owners face an increasing risk they will be the target of a lawsuit by a buildings occupants charging that myriad health effects have been caused by indoor air quality. Lower insurance and/or workers compensation policy premiums could potentially result from better air quality in buildings. In addition, some insurance companies are willing to offer lower premiums for buildings with high mass walls because they reduce the risk of re. As it happens, these walls can also save energy by storing heat and evening out temperature uctuations. The Federal Emergency Management Agency gave all buildings in unincorporated areas of Charleston County, South Carolina, a ve percent premium reduction on ood insurance, based on the developers of Dewees Islands voluntary efforts to improve the countys ood management capabilities through actions undertaken on the island. Health and Productivity Several recent studies have revealed another compelling argument for green development. Improving ofce lighting, heating, and coolingmeasures typically undertaken for energy savingscan make workers more comfortable and productive. According to a study by the Rocky Mountain Institute, productivity gains of six to sixteen percent, including decreased absenteeism and improved quality of work, have been reported from energyefcient design. Since companies spend an average of 70 times as much money (per square foot per year) on employee salaries as on energy, an increase of just one percent in productivity can result in savings that exceed the companys entire energy bill. To a developer, these savings can mean higher lease rates and greater return on investment if the tenants understand the benets. Most energy-efcient design practices are cost effective just from their energy savings; the resulting productivity gains make them indispensable. Often, the gains in productivity are an unexpected bonus. At the U.S. Post Ofce mail processing center in Reno, Nevada, a $300,000 retrot was carried out to improve energy efciency. Combined energy and maintenance savings came to about
SFUs City Program and the GVRD 71

$50,000 a yeara calculated six-year payback. But it turned out that improvements in employee productivity dwarfed the energy savings. With the new, energy-efcient lighting, postal workers output at the mail-sorting machines increased by six percent, while sorting errors dropped to 1 per 1000lower than any post ofce in the western U.S. These improvements were worth $400,000 to $500,000 a year. In other words, the productivity gains paid for the entire renovation in just seven to nine months. Staying Ahead of Regulations Few developers would deny that complying with regulations is expensive. Both national regulations, such as those dealing with asbestos and lead paint, and global regulations, such as the Montreal Protocol to phase out CFCs, have necessitated costly and complex mitigation by the building industry. Since it is almost always more expensive to comply with regulations after the fact, those who stay ahead of future environmental regulations are likely to benet down the road. Some of the green developments proled in this book, for example, were among the rst to specify totally ozone-safe chillers (chillers using refrigerants that do not harm the stratospheric ozone layer), and have thus protected building owners from the costs of future modications when CFC and HCFC refrigerants become unavailable or prohibitively expensive. Business consultant Michael Porter, of the Harvard Business School, cautioned in the Harvard Business Review, we are now in a transitional phase of industrial history in which companies are still inexperienced in handling environmental issues creatively... The early moversthe companies that can see the opportunity rst and embrace innovation-based solutionswill reap major competitive advantages, just as the German and Japanese car makers did [with fuel-efcient cars in the early 1970s]. While Detroit spent their dollars ghting fuel efciency standards, German and Japan manufacturers dominated the market. In the development community, the innovators who embrace environmental responsiveness, occupant health, and productivity enhancement stand to gain, while those who stand still may be lost in the shufe. New Business Opportunities Some of the benets to green developers are very difcult to measure. Many of the pioneering green developers are nding that their emphasis on protecting the environment and supporting local cultures is opening up new doors. Based on what he did with the Inn of the Anasazi, for example, developer Robert Zimmer has been courted to duplicate that success with hotel projects in other areas. Eco-resort developer Stanley Selengut has received numerous business opportunities as a result of his
72 Economics of Green Buildings

Figure 20

environmentally sensitive development work. He has been offered resort properties all over the world that others salivate over but that arent for sale. He has signed an agreement with the U.S. National Park Service to work on a series of prototypes for national park developments that will have minimum impact on the land. Satisfaction from Doing the Right Thing As will be illustrated throughout this book, substantial nancial benets are available to developers who are thinking of embarking on green projects. But most green developers dont do what they do entirely for monetary reasons. The other reasons they give are many and varied: to provide a better place to live, to prove that development can be done in a different way, to educate people about environmental issues, to make the world a better place for their grandchildren.

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Green Building Glossary


From the Hugh L. Carey Battery Park City Authority, New York, NY, Green Glossary, http://www.batteryparkcity.org/green_glossary_v3.htm, April 2004. Albedo The ratio of reected light to the total amount falling on a surface. A high albedo indicates high reectance properties. BPCA GG ASHRAE American Society of Heating, Refrigeration and Air Conditioning Engineers Base Building Also referred to as core and shell building, includes overall building elements which are completed prior to construction of tenant nish; including structure, enclosures (walls, glass and roof), the vertical core (consisting of elevators, stairs, bathrooms, shafts and risers) and central mechanical and electrical systems. LL - 4TS Biodegradable A material which can be decomposed when discarded by the normal action of bacteria and fungi. Typical examples are paper and wood products, natural bers, starches. LL - 4TS BTU (British Thermal Units) A unit of measurement equivalent to the amount of heat energy required to raise the temperature of one pound of water one degree Fahrenheit. LL - 4TS Building Commissioning A systematic process that begins in the design phase of a new or remodeled building, and includes testing and ne-tuning of the HVAC, electrical, plumbing and other system to assure proper functioning and adherence to design criteria. Commissioning also includes preparation the systems operations manuals, and instruction of the building maintenance personnel. BPCA GG Building Envelope The elements of a building (e.g. walls, roofs, oors) enclosing conditioned spaces through which thermal energy may be transferred. LL - 4TS

74 Economics of Green Buildings

Building Load That energy expended for running of building systems. BPCA Chlorouorocarbons (CFCs) Synthetic chemicals manufactured from hydrocarbons and chlorine, ourine, or bromine that are used in refrigeration, air conditioning, packaging, insulation, and as solvents and aerosol propellants. Because CFCs drift into the upper atmosphere, where their chlorine components destroy the earths protective ozone layer, they were completely banned in 1997. BPCA GG Clerestory A glass window at the top of an interior building wall, specically intended to transmit daylight from the exterior to the interior. LL-4TS Curtain Wall Any exterior wall which is supported by or hung from the building structure. Typically, the term curtain wall is used to describe a metal and glass wall system. Daylighting The use of controlled natural lighting methods indoors through top lighting (skylights), side lighting (windows) and/or uplighting (reection) LL-4TS Demand The rate at which energy is consumed by a piece of equipment or a building as a whole or the maximum amount of energy required for a specic length of time which may be greater than the amount of energy required at other times. LL-4TS Direct Digital Monitoring (and Control) Sensing and control of the building operating conditions with computer microprocessors and digital communications. DOE- 2 A public domain computer program for energy analysis developed by Lawrence Berkeley National Laboratory. Well suited for large commercial buildings, the program calculates a buildings energy use and lifecycle costs based on its location, construction, operation, and HVAC systems. It is useful in evaluating building system design, energy budgets, and life-cycle costs and benets, and can explore trade-offs between design alternatives. It includes four main calculation sections: loads, systems, plants, and economics. LL-4TS

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Formaldehyde A gas used widely in production of adhesives, plastics, preservatives, and fabric treatments and commonly emitted by indoor materials that are made with its compounds. LL-4TS Fossil fuels Coals, gas or coal fuels derived from ancient vegetation. Fossil fuels were formed several million years ago and are generally considered non-renewable energy sources. LL-4TS Fuel Cell A technology that uses an electromagnetic process to convert energy into electrical power. Often powered by natural gas, fuel cell power is cleaner than grid-connected power sources. In addition, hot water is produced as a by-product that can be utilized as a thermal resource for the building. BOCA GG Fungi Parasitic lower plants (including mold and mildew) lacking chlorophyll and needing organic material and moisture to germinate and grow. LL-4TS Graywater Wastewater that does not contain sewage or fecal contamination and can be reused for irrigation after simple ltration. BOCA GG Hat Truss Design A structural steel truss located at the top of the building to provide a rigid frame for resisting lateral wind loads and reducing building movement (sway). Humidity, relative (RH) The ratio of the amount of water vapor actually present in the air to the greatest amount possible at the same temperature LL-4TS Hydrogenated Chlorouorocarbons (HCFCs) Substitute refrigerants and solvents which do not have as much potential to destroy atmospheric ozone if released into the environment as of CFCs . Most are less efcient as refrigerants than CFCs and some are quite toxic. LL-4TS HVAC System The equipment, distribution network and terminals that provide either, collectively or individually the processes of heating, ventilation or air-conditioning to a building. LL-4TS

76 Economics of Green Buildings

IAQ (Indoor Air Quality) According to the U.S. EPA and National Institutes of Occupational Safety and Health, the denition includes: 1) introduction and distribution of adequate ventilation air; 2) control of airborne contaminants; and 3) maintenance of acceptable temperature and relative humidity. According to ASHRAE Standard 62-1989 indoor air quality is dened as air in which there are no known contaminants at harmful concentrations as determined by cognizant authorities and with which a substantial majority (80% or more) of the people exposed do not express dissatisfaction. LL-4TS Integrated Pest Management A coordinated approach to pest control that is intended to prevent unacceptable levels of pests by the most cost-effective means with the least possible hazard to building occupants, workers, and the environment. BPCA GG ISO 14000 Set of generic standards developed by the International Organization for Standardization (ISO) created to give business management a structure for measuring environmental impacts. The standards include a broad range of environmental disciplines, including basic environmental management systems (EMS), auditing, environmental performance evaluations (EPE), labeling, life-cycle assessment (LCA), and environmental aspects in product standards (EAPS). LL-4TS Life Cycle Cost The amortized annual cost of a product, including capital costs, installation costs, operating costs, maintenance costs, and disposal costs discounted over the lifetime of the product. BPCA GG Light Shelf A horizontal device positioned (usually above eye level) to reect daylight onto the ceiling and to shield direct sunlight form the area immediately adjacent to the window. LL-4TS Load Indicates a rate of ow of energy for either a heating or cooling requirement or a total of both (expressed in terms of BTU per hour, BTU per month or BTU per year). LL-4TS Low-E (Emissivity) Glass Glass with a selective optical coating that blocks transmission of infrared light while allowing transmission of the remaining available light spectrum, to reduce solar heating loads and cooling
SFUs City Program and the GVRD 77

energy while maintaining visible daylight. The use of Low-E Glass results in spaces that are warmer in the winter and cooler in the summer. LL-4TS/BPCA GG Luminaire A complete electric lighting unit, including housing, lamp and focusing and/or diffusing elements; informally referred to as a xture. LL-4TS Material Safety Data Sheets (MSDS) A legal requirement for all potentially hazardous products, the data sheet indicates the risks from using and disposing of the product and recommends safe practices. The sheet may also indicate the chemical contents if the product. LL-4TS Occupancy Sensor A device that detects the presence or absence of people within an area and causes any combination of lighting, equipment or appliances to be adjusted accordingly. LL-4TS Off Gassing or Out Gassing The release of gases or vapors from solid materials. It is a form of evaporation or a slow chemical change which will produce indoor air pollution for prolonged periods after installation of a material. LL-4TS Operations & Maintenance Operations refers to how equipment or systems are run, e.g., when a system should be turned on, temperature ranges, set points for boiler pressures and temperatures, thermostat set points, etc. Maintenance refers to servicing or repair of equipment and systems. Preventive maintenance performed on a periodic basis to ensure optimum life and performance is designed to prevent breakdown and unanticipated loss of production or performance. Corrective or unscheduled maintenance refers to repairs on a system to bring it back online. Predictive maintenance is performed on equipment monitored for signs of wear or degradation, e.g., through thermography, oil analysis, vibration analysis, maintenance history evaluation. LL-4TS Outdoor or Outside Air Air taken from the exterior of the building that has not been previously circulated through the building. LL-4TS Ozone Depletion The loss of atmospheric ozone, which is the very high altitude layer that protects the earth from destructive ultraviolet radiation.
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Payback Period The amount of time it takes the savings resulting from the modication to pay back the costs involved. A simple payback does not consider the time value of money. A discounted payback period does. LL4TS Peak Load Maximum predicted load over a given segment of time for any system. Photovoltaic Generation of electricity from the energy of sunlight, using photocells. Photovoltaic Panels These devices use semiconductor material to directly convert sunlight into electricity. Power is produced when sunlight strikes the semiconductor material and creates an electric current. BPCA GG Post-Consumer Recycled Content A reclaimed waste product that has already served a purpose to the consumer, such as a used newspaper, and has been diverted or separated from the waste stream for recycling and reprocessing back into a new consumer product. BPCA GG Post-industrial Recycled Content Material that is the by-product of the industrial production process. BPCA R-value A measure of the thermal resistance of material. BPCA GG Radiance Program Public domain lighting simulation software developed at Lawrence Berkeley Labs, for analysis and visualization of lighting in design. It is used by architects and engineers to predict illumination, visual quality, and appearance of innovative design spaces. A PC version named ADELINE uses Radiance and can interface with CAD software. LL4TS http://radsite.lbl.gov/radiance Recycled Material Material that would be otherwise destined for disposal but is diverted or separated from the waste stream, reintroduced as material feedstock, and processed into marketed end products. LL4TS
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Renewable A renewable product that can be grown or naturally replenished or cleansed at a rate that exceeds human depletion of the resource. LL4TS Renewable Energy Energy resources such as wind power or solar energy that can keep producing indenitely. Return Air Air that has circulated through a building as supply air and has been returned and has been returned to the HVAC systems for additional conditioning or release from the building. LL4TS Reuse The recovery of material to be used again for a similar application without reprocessing. LL4TS Supply Air The total quantity of air supplied to a space of a building for thermal conditioning and ventilation. Typically, supply air consists of a mixture of return air and outdoor air that is appropriately ltered and conditioned. LL4TS Sustainable The condition of being able to meet the needs of present generations without compromising those needs for future generations. Achieving a balance among extraction and renewal and environmental inputs and outputs, as to cause no overall net environmental burden or decit. To be truly sustainable, a human community must not decrease biodiversity, must not consume resources faster than they are renewed, must recycle and reuse virtually all materials and must rely primarily on the resources of its own region. LL4TS Sustainability The practice of conservation and environmental protection which assures the availability of resources for future generations. Task Lighting Lighting that provides illumination for specic visual functions, and is directed to a specic surface or area. Thermal Breaks An insulating barrier which provides a separation between construction elements that are exposed to the outside. A thermal break is used especially to reduce the conductive transfer of curtain wall and window frame elements and their resulting energy loss to the outside. A thermal break also minimizes the
80 Economics of Green Buildings

possibility of condensation on surfaces of exterior framing. LL4TS

Transmissivity The capacity of a material to transmit radiant energy. LL4TS Urban Heat Island Effect The additional heating of air over city as the result of the replacement of vegetated surfaces with those composed of asphalt, concrete, rooftops and other man-made materials. These materials store much of the suns energy, producing a dome of elevated air temperatures up to 10 degrees greater over city compared to air temperatures over adjacent rural areas. Light colored rooftops and lighter colored pavement can help to dissipate heat by reecting sunlight, and tree planting can further help modify the citys temperature through shading and evapotranspiration. BPCA GG Variable Air Volume (VAV) A method of modulating the amount of heating or cooling effect that is delivered to a building by the HVAC system. The ow of air is modulated rather than the temperature. VAV systems typically consist of VAV boxes that throttle supply air-ow to individual zones, some mechanism to control supply-fan ow to match box demand, and the interconnecting duct work and components. Variable Speed Drives Motor drives for fans and pumps whose speed can be increased or decreased by modulating the frequency of the electrical input, thereby reducing electrical demand at part-load conditions. LL4TS Volatile Organic Compounds (VOC) Chemicals that contain carbon molecules and are volatile enough to evaporate from materials surfaces into indoor air at normal room temperatures (referred to as off-gassing). Examples of building materials that may contain VOCs include, but are not limited to, solvents, paints, adhesives, carpeting, and particleboard. Signs and symptoms of VOC exposure may include eye and upper respiratory irritation, nasal congestion, headache and dizziness. BPCA GG Sources: LL4TS = Lessons Learned 4 Times Square BPCA GG = Battery Park City Authority Green Guideline

SFUs City Program and the GVRD 81

Photo Credits
Cover Photo, Figure 10 Terasen Operations Centre Location: Surrey Client: Terasen Architect: Musson Cattell Mackey Partnership Mechanical: Keen Engineering Co. Ltd Photo: Bob Matheson Figure 1, 9 UniverCity Location: Burnaby, Simon Fraser University An image of UniverCity Crescent. Figure 2 Hinton Government Centre Location: Hinton, Alberta Photo: Jim Dow Architect: Manasc Isaac Architects Inc. Figure 3 William Farrell Building Location: Vancouver Client: TELUS Architect: Busby + Associates Architects Mechanical: Keen Engineering Co. Ltd Figure 17 William Farrell Building Photo: F.Pacella Figure 4 Government of Canada Building Location: Yellowknife, NWT Architect: Manasc Isaac Architects Inc. Figure 5, 6, 13, 20 Richmond City Hall Location: Richmond Client: City of Richmond Architect: Hotson Bakker and Kuwabara Payne McKenna Blumberg Associated Architects Mechanical: Stantec Consulting Ltd. Photo: Martin Tessler Figure 7, 16 Terasen Operations Centre Photographer: Nic Lehoux Figure 8, 19 White Rock Operations Buildings Location: White Rock, BC Client: The City of White Rock Architect: Busby + Associates Architects Mechanical: Keen Engineering Structural: Fast + Epp Photo: Ray Cole Figure 11 Pivotal Building Location: Vancouver Architect: Busby + Associates Architects Structural: Glotman Simpson Mechanical: Keen Engineering Co. Ltd Photo: F. Pacella Figure 12, 14, 15 The Old Mill Boathouse Location: Port Moody Client: City of Port Moody Architect: Robert Burgers Architects Mechanical: NDL Consultants Ltd. Structural: Fast + Epp Structural Engineers Photo: Noel Hendrickson Photography Watercolour: Cedric Burgers Figure 18 Liu Centre for the Study of Global Issues Location: The University of British Columbia, Vancouver Client: The University of British Columbia Architect: Architectura and Arthur Erickson Mechanical: Keen Engineering Co. Ltd Photo: Gerry Kopelow

82 Economics of Green Buildings

Presentation Notes

SFUs City Program and the GVRD 83

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