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The LEED Rating system. For this talk we focus on New Construction. 4
GreenPoint Rated covers all aspects of homes: new and existing.
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UC SD study on productivity and in-tangibles in green building. http://catcher.sandiego.edu/items/business/productivity_paper_with_cbre_and_us D_Aug_2009-Miller_Pogue.pdf 10
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Rater fee: BIG certification model is based on a Rater signing off on documentation and verification of the Checklist. The Rater then submits this package to BIG for certification. Fees shown here under Hard Cost are for basic Rater services and do not include special inspections or consulting. Low end of ranges are for lower-scoring projects; higher end ranges are for higher scoring projects. Energy Efficiency (15% above code) costs are based on a PG&E study done by Gabel Associates for use in submitting cost effectiveness findings to the CEC. Costs are averages for Climate zones 3 and 12 in Alameda County. Efficiency upgrades are determined in this study to be cost effective with simple paybacks of 12-15 years for new homes, and 12-22 years for multifamily (12-16 years for cooling dominated CZ12; 18-22yrs for heating dominated CZ3). 13
Registration is a flat fee, shown here for members of USGBC Certification under 50,000 is $2250 for Design + Construction phase review. Commissioning is now required for projects >10,000sf as per CALGreen new construction requirements. While written with similar requirements to LEED, it remains to be seen whether or not CALGreen Cx = LEED Cx in verification and enforcement and therefore cost. 14
Energy Efficiency (15% above code) costs are based on a study done by Gabel Associates for Alameda County for use in submitting cost effectiveness findings to the CEC. Find online at www.buildgreennow.org. 15
Source: http://www.calrecycle.ca.gov/greenbuilding/design/costbenefit/report.pdf 16
Source: http://www.goodenergies.com/news/-pdfs/web%20site%20presentation.pdf 17
Source: http://www.nhphps.org/docs/documents/greenbuildingspaper.pdf 18
Source: http://www.davislangdon.com/usa/research/researchfinder/2007-the- Cost-of-Green-Revisited/ 19
Davis Langdon 20
Davis Langdon 21
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Base cost assumed LEED-Silver. Early in design it was clear the project would far exceed Silver and Gold was nearly guaranteed. We looked at the cost of achieving Platinum by buying some additional points. Shown here are cost additions added halfway through construction in an effort to achieve Platinum. 25
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Rater/Inspection Fees: The Costs shown for this line item are assumed to be in addition to CALGreen mandatory requirements, which become the new baseline cost for all new construction in 2011 and are therefore not factored into these cost scenarios. However, the CALGreen mandatory requirements tend to be typical measures that every builder chooses to install/verify if they are seeking GreenPoint Rated, so additional costs are likely minimal on projects seeking GPR, especially when a GPR rater does double-duty as both a CALGreen mandatory measures special inspector and GreenPoint Rater (thus achieving economies of scale). In such a case (where a Rater does GPR + CALGreen mandatory), costs will likely be toward the upper end of this price range for a low-medium scoring project. GPR Rater Hard Costs: Costs shown are estimated for the Rater portion of basic GreenPoint Rated project costs above and beyond CALGreen mandatory compliance (not including additional services, consulting time, HERS or ENERGY STAR testing). Lower scoring projects will be toward the bottom of this cost range; higher achievers will be towards the upper end. If factoring in the cost of mandatory CALGreen compliance, costs will likely be toward the upper end of this price range for a low-medium scoring project (add about $50/home for CALGreen mandatory). Tier 1 Inspection Fees (Hard Costs): The cost shown for meeting Tier 1 assumes additional documentation or special inspections above and beyond mandatory CALGreen requirements, roughly estimated at $100 per home for Tier 1 on non-gpr projects. The costs shown here for Tier 1 are NOT in addition to GPR, but rather are the assumed cost for a project that is achieving Tier 1 and NOT GPR. If factoring the cost of mandatory CALGreen compliance as well, costs may be $150-$200 per home total, or roughly $4500-$6000 total. Energy Efficiency (15% above code, 2008 T24) costs are based Gabel Associates study for PG&E. Efficiency upgrades are determined in this study to be cost effective with simple paybacks of 12-15 years for new homes. 27
Educated guesses based on LEED experience and CALGreen undefined Tier requirements. Costs are for LEED Certified with the option of exceeding LEED requirements and building to Tier 1 equivalent % above energy code (15%). Most projects apply for incentives from the utilities to offset some additional costs for energy efficiency. Energy Efficiency (15% above code) costs are based on a PG&E study done by Gabel Associates for use in submitting cost effectiveness findings to the CEC. Costs are averages for Climate zones 3 and 12 in Alameda County. Analysis by CTG shows that the mandatory measures in CALGreen satisfy 10 LEED credit points (minimum 40 pts for certification). But CALGreen may not satisfy all LEED prerequisites; for example EA prerequisite 2 requires 10% better than ASHRAE 90.1-2007 (or California T24-2005); compliance with T24-2008 has not been determined to equal 10% better than ASHRAE 90.1-2007. Depending on which electives are chosen, TIER II can satisfy an additional 25-40 LEED credit points (credit: CTG). 28
Alternative Scenario: We do NOT advocate for lesser energy standards, but in actuality LEED Certified only requires a 10% improvement in energy efficiency as a prerequisite. Taken strictly at minimum required practices to achieve LEED, in this case LEED actually costs less than CALGreen. This illustrates the point that, when given the choice, design teams can choose to spend more money on energy efficiency in LEED (as many do in order to apply for incentives to help offset additional costs when designing buildings that save over 15% energy), and therefore have more flexibility in meeting green building requirements. In fact, according to Simon & Associates analysis, 80% of "regional LEED projects" achieve at least one point in energy, and 52% of regional projects achieve 15%+ energy efficiency, as of summer, 2010. So most projects beat code by 15% anyway, but the true cost Energy Efficiency costs are based on Gabel Associates cost effectiveness studies (2008T24) done for Alameda County and PG&E for use in submitting cost effectiveness findings to the CEC. Findings: 10% energy improvement for low-rise office buildings equals $0.93/sf (2009); 15% improvement equals $2.09/sf (2010). Also, Gabel studies show that even with a cost premium of achieving 15% energy improvements over code, simple paybacks are 4-10 years estimate, thus justifying the cost-effectiveness of investments up front in energy. 29
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CALGreen has a cost when enforced. May require increased fees, special inspections, or outside consultants for CALGreen as well as 3 rd party systems. Local jurisdiction must make a decision regarding cost burden (in-house or on the applicant?) How savvy is the local design, building, engineering, architectural fields? Is there a robust Rater community/leed-ap support system already in place? How valuable are green building goals to the city, builders, tenants, owners, etc? How valuable is a label to the community/builders/designers? Is there a value to having access to quantifiable benefits of building green? Climate Action Plans, energy efficiency goals, etc? CALGreen does not have this benefit. Their litigation risk analysis (if someone sues over construction defect, who is at fault)? 31
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