Green Buildings are beginning to be environmentally sound investments as government provides the necessary incentives to advance the wider use of alternative “green” methods, buying down slightly higher up front construction costs that are often, again over time, recouped in reduced operating costs and additionally set-off by premium rents.

Moreover, Green Buildings are essential to the effort to tackle the two big energy related issues of the age, global warming and the nation’s dependence on precarious supplies of foreign oil.

Green Building is a philosophy of design and construction that integrates natural resources more effectively, preserves and restores the natural and human resource base while creating healthier, more efficient “high performance” structures, homes and communities.

This philosophy may incorporate the following principals: Using natural and manmade resources efficiently; optimizing energy performance by installing energy efficient equipment and systems; optimizing climatic conditions through site orientation and design; integrating natural day-lighting and ventilation; considering the impact of buildings and development projects on the local, regional and global environment; reducing building footprint and development size; allowing ecosystems to function naturally; conserving and reusing water; treating storm water on-site; maximizing the use of local materials; minimizing the use of mined rare metals and persistent synthetic compounds and volatile organic compounds; and, minimizing construction waste by reducing, reusing and recycling materials during all phases of construction and deconstruction.

LEED (Leadership in Energy and Environmental Design) is a point based rating system developed by the U.S. Green Building Council that establishes a nongovernmental national standard for measuring Green Building. Points are given for green practices that implement the principals described above (for example using less energy and water, Brownfields redevelopment, using locally harvested materials, providing for daylight). Based upon a building’s total number of points, it will receive one of the four LEED ratings: Certified, Silver, Gold or Platinum.

In the U.S., LEED is the most widely recognized and implemented Green Building rating and certification system. Over 20 states and 40 municipalities have adopted LEED standards. And LEED has certified over 55 million square feet of construction across the U.S. since its inception in 2000.

Within the last year, the Canadian rating system of Green Globes began to gain acceptance in the U.S., but this Green Building system does not result in a 3rd party approval and the self administered program is of limited efficacy if a government response is required. LEED and Green Globes certifications are complimentary to Energy Star ratings for energy efficient appliances and products.

Creating a significant market, by Executive Order all new Maryland state owned or leased facilities larger than 7,500 gross square feet must be LEED Silver Certified.

The State of Maryland offers a Green Building Tax Credit against a taxpayer’s personal or corporate income tax. The credit varies from 6% to 8% of total allowable construction
costs for a building of at least 20,000 square feet that meets specified Green Building standards. The current standard is LEED based. In the future, as new standards become available, the Maryland Energy Administration is to accept those standards.

Baltimore County is currently considering Bill 85-06 that would create a tax credit of 100% of the property taxes for 10 years for a LEED Silver certified commercial building. Today there are only two LEED certified buildings in Baltimore County, both Federal government owned projects, the Social Security Administration Childcare building and the Social Security Annex building. And while there is one privately owned building under construction that has applied for LEED certification, the legislation scheduled for a vote on July 3rd, would make Baltimore County a leader in environmental protection.

The Baltimore City Green Building Task Force has recently issued its report calling for a comprehensive Green Building program in the City, including tax credits and loans.

The voluntary incentives offered by government, whether as tax breaks, direct grants or loans for Green Buildings are a non-prescriptive non-regulatory approach to environmental protection that responds to the overwhelming public sentiment that government has not done enough to protect the environment while not burdening owners and operators of the land with another mandate.

The public is well aware, without the need to hear it from Al Gore, that global warming exists. Your scrivener has been to the summit of Kilimanjaro and seen the impact of global warming on the disappearing glaciers! And when coupled with the issue of the nation’s dependence on precarious supplies of foreign oil, Green Building incentives are a very modest response.

Green Buildings reduce energy consumption and costs (significant at a time when electric rates are increasing); create local green building jobs within the construction sector; mitigate environmentally related health risks (including indoor air quality issues); improve work and learning environments; and, affirm our society’s commitment to environmental conservation.

The Federal government commissioned a study last year that examined six scenarios each for two buildings and determined, “… the overall construction cost premium [for LEED certified projects] can be surprisingly limited, even at higher rating levels. Under certain conditions, it is even possible for projects to show a slight cost decrease.” In 2004, the City of Seattle studied two newly constructed LEED Silver buildings in Seattle and determined the additional cost for each building, as a percentage of project cost was 0.7% and 1.9%. Operating costs estimated over 25 years resulted in a discount of 2% and 6% respectively showed that, without government incentives, the additional investment in one building was cost effective and in the other was not.

A recent Houston, Texas evaluation reported that LEED Silver rated buildings consumed, on average, 30% less energy than those designed to meet current 2004 building codes. Reducing operational energy costs by nearly one third is particularly dramatic in an era of electricty deregulation when electric rates are increasing.

Profitability is advantaged by Green Building. Within the last year, DuPont, Johnson & Johnson, United Technologies and GE have all announced environmental improvement initiatives that include Green Buildings.

It is clear that a powerful market dynamic is already driving some building owners (in New York City and elsewhere) to establish a market edge with a green identity. Green Buildings reward building owners and, by implication, stigmatize those businesses operating in non-environmentally friendly buildings.

The Green Building philosophy is an industry-friendly, results oriented environmental policy that may portend a future for broader environmental policy.

What can you do if you are not yet ready to construct a Green Building? If you live or work in Baltimore County, call your Councilman in advance of the July 3rd vote on Bill 85-06 and ask them to vote in favor of that Green Building property tax legislation.

And everyone should now chose energy efficient lighting as a green element at their home and business. Lighting accounts for one-fifth of all electricity consumed in the U.S. and all regular incandescent light bulbs should be replaced with super-efficient compact fluorescent lights (using 66% less energy) that will reduce your electric bill while reducing green-house gas emissions.

Green Buildings are beginning to be environmentally sound investments. As businesses respond to market demands to enlarge their profile in environmentally conscious efforts, and more governments seek Green Building space, Green Buildings are commanding premium rents. And with government providing incentives to buy down the slightly higher up front construction costs, that are often, again over time recouped in reduced operating costs, now is the time to recognize that Green Buildings are the next big thing.