Green building laws and incentives in New York City and State

Green Building Laws

Green Building and Green Retrofitting

The department of Federal Environmental Executive defines green building like this: Elevating the competence by which the built structures consume energy, equipment and water along with decreasing the adverse effects on health of human beings including the surroundings by improved structure, maintenance, procedure, operation, choice of a better site and elimination of waste. The subsequent section explains the current guiding principles for retrofitting and green building (Columbia University, 2005).

Established Green Building Guidelines

The aim of United States Green Building Council (USGBC) is to improve the infrastructure and quality of work while constructing buildings which are environment friendly, lucrative, hale and hearty to work and live in (Columbia University, 2005). LEED (Leadership in Energy and Environmental Design) given by USGBC is usually thought to be the finest power in green building (Brown et al., 2002).

LEED was established by USGBC in 1999 and it focuses on various important ecological and power regions affected by buildings. Important features dealt with by LEED are:

Water competence

Maintainable siting

Indoor environmental quality (IEQ)

Novelty in processing

Energy & environment

Materials & funds

Maintenance and Upgrades

Guidelines given by LEED and the ranking method are accepted nationwide and are valid for structures of green building. Lately USGBC has printed a bunch of guiding principles exclusively for buildings already in existence which is called LEED-EB and it will be talked about in a segment discussed later (Columbia University, 2005).

Battery Park City Authority Residential Environmental Guidelines

Although LEED did not discuss the guiding principles of multi-story living areas but to implement green building principles for freshly constructed living areas and business buildings in Battery Park City, the authorities of BPC made new inventive guidelines to deal with this problem. Guidelines for residential and environmental sketch out the fundamental ecological and competence intentioned regions of multi-story green buildings for living purposes as well as (New York State Energy Research and Development, 2004):

Energy effectiveness

Water preservation

Upholding and Operations

Indoor ecological/environmental quality (IEQ)

Protection of objects and reserves

These guiding principles were emerged in the making of Solaire, which is a high-raise of housing type started in the month of June, 2003 and since then it has triumphed the international praise because of its lifting infrastructure and exhibit (New York State Energy Research and Development, 2004).

High Performance Building Guidelines

Guidelines for High Performance structures were designed by an Office of Sustainable Design working at Department of Construction and Design (DDC) of New York City. It was done so to bring in such designs which can be carried on by DDC teams (Columbia University, 2005)."

Detailed guidelines of DDC covered various regions:

Design course

Water supervision

Operations and preservation

Designs of site and its arrangement

Energy use of a building

Indoor atmosphere

Material and merchandise choice

City procedure

Building administration

Commissioning

This particular document has been accepted internationally as a prototype for the buildings of high-performance. It focuses on the peculiar challenges and chances for construction in atmosphere of cities (New York State Energy Research and Development, 2004).

Definition of Green Retrofitting

This term "Green retrofitting" accounts for the progression of updating or refurbishing already present buildings to better their effectiveness, lessen the utilization of supplies and generating a hale and hearty indoor atmosphere. Green retrofitting seems to be a blossoming turf. The peculiar guidelines for already existing buildings (LEED-EB) verified by USGBC in October 2004, is a proof of it. Preferably, green retrofitting covers enhancement and improvement in every ecological area; nonetheless, green retrofitting can result in augmented green development with respect to expenditure, repercussion and practicability of betterment (Columbia University, 2005).

Although New York is low with respect to creating room for new constructions but Battery Park City does have some vacant space on hand. To avail the chances of green retrofitting is suitable for BPCA and State as well as City of New York as founders and promoters of the concept. By applying these changes in the city of Battery Park the management can have solid role model and various surrounding cities, in fact the whole nation and the state can learn something from them (Environmental Building News, 2003).

Two main challenges for green retrofitting include 1) to apply the current modifications in this regard to all the buildings already present and 2) to start venturing in green building reconstruction. This particular research discusses the objectives of green retrofitting plus it suggests plans for BPCA to endorse a gesture of green retrofitting in its power (Environmental Building News, 2003).

Laws enacted by the State of New York

George E. Pataki, Governor of New York gave an Administrative order No. 111 which stated (Green and Clean State Buildings and Vehicles) and ordered the organizations of state to be conservative in using energy and become more ecologically conscious. This order was particularly for the organizations and divisions on which Governor has supreme authority and for all the organizations made for the interest of common people and public management whose leaders are selected by Governor himself (Industrial Economics, 2005).

At this moment there are 200 units under the Executive order given by the Governor with respect to new buildings being built in the state and enormous reconstructions. The Order given by the Governor stated the units under its command to pursue as much as possible, the guidelines of LEED and the guiding principles developed in the private division of Green Building Tax Credit with respect to its structure, built quality and handling and upholding actions. Moreover, the Order also stated that from now on the new buildings being built for units under the command should at least improve 20% in energy competence as compared to the Conservation of energy and Construction Code given by the state. Furthermore, all the entities under command should make sure that out of their electricity needs annually in 2010, 20% is achieved by renovation of the assets of energy (Industrial Economics, 2005).

The Governor in accordance with New York State Energy Research and Development Authority (NYSERDA) ordered them to ensure the application of the Executive Order. Amongst the first few steps taken by NYSERDA was the development of guidance principles to help the entities under consideration to make their own comprehensive achievement plans. As a component of that guideline NYSERDA also developed Working groups, which were six in number, for the areas aforementioned (amongst them, one was made to concentrate on green building) (Campas, 2005).

Even though NYSERDA actually is the main organization to modify green building purpose in general public of New York but it is concentrates on the main task of encouraging the use of equipment related to production of energy and its usage. In order to achieve its aim of decreasing the total amount of energy which is used by the buildings of public sector in New York, the technological help is given, encouragement and motivation is provided and obedience report of Executive Order is demanded annually. Peculiar plans and strategies in regard to green building are being made at the level of single organizations and when the assistance is requested, it is provided by NYSERDA (Campas, 2005).

Vision and leadership

NYSERDA, even before the year 2000, was effectively working and had already been established for six years mainly focusing in competency and analysis of energy and materials respectively of all the buildings nationwide. NYSERDA's facilities for green building were also the education and guidance of making the guidelines. All these attempts were aided at first by a fund to evade pollution by EPA and then later on by the program of New York Flexible Technical Assistance ("FlexTech") which actually gives energy effectiveness and various other facilities at 50/50 cost split prejudice with venture members. Nowadays, the reduction of utilization of electricity and allocating certain funds, by use of motivation, and by the funds developed from a nationwide campaign of collecting money on service bills by System Benefit Charge (SBC), has served to be the main resource of the generated funds (Dawson, 2005).

NYSERDA also facilitates the LEED, Tax Credit of Green Building sector and the Executive Order 111 with the funding of SBC. Various other facilitations given by NYSERDA are designing structures and the guidelines for, for example, Battery Park City Authority, the University in Buffalo, World Trade Center, and Department of Construction and Design of New York City; hiring and teaching and loans of decreased interests (Dawson, 2005).

Interest of Governor Pataki and his dedication to ecological problems was evident by Executive order111. It was further augmented (more or less because the Executive order enveloped and concentrated on green buildings) by the acceptance of Tax Credit for Green Building in the year 2000 (Dawson, 2005).

Modus operandi and completion plans for the fulfillment of Execution Order are now being formed at one organization. As per the needs of green building the strategy varies from LEED guarantee as a prototype aim or inclination towards non-hostile plans that concentrate merely on great labor to reach the compliance (Kneeland, 2005).

There is no autonomous office for the growth and realization of the program of green building. The employees of NYSERDA who work for and maintain services regarding green building are kept in the same building as the group of Energy Efficiency Services. Employees of NYSERDA are of the view that it is only fair to accept their tries as that of a fundamental association based on an idea rather than merely an article in the budget line (Kneeland, 2005).

The State entities offer the leverage of the resources and other technical services which allow the entities to become effective. Moreover, it has been acknowledged by New York State that green building and other Executive Orders related to the green building are successful if the initiatives regarding green building are made affective by the entities. The primary sources for this leverage are the New York Power Authority (NYPA), Dormitory Authority of the State of New York (DASNY), the Long Island Power Authority (LIPA), and the Office of General Services (OGS) along with the NYSERDA (Kneeland, 2005).

As per the Executive Order 111 the individuals of the State are obliged to submit an Annual Energy Report to NYSERDA. This report should consist of the performances of the energy and also present the strategies related to build the new buildings and follow those strategies to meet the EO requirements. This was established by NYSERDA as agencies don't have any particular practical method to come up with the reports focusing on the quantifiable data of the green buildings. All the major facilities are covered in these reports and do not necessarily focus on the specific data related to the particular individual. The descriptions given in reports are considered to be limited to statements for which the individuals may make agreements according to NYSERDA (Industrial Economics, 2005).

Education and training

• Various meetings and programs have been organized by NYSERDA and in January 2002 three meetings were organized and LIPA, DASNY, NYPA, and OGS illustrated the programs and services. These programs were pertinent to Executive Order compliance and to personnel of states with more than 450 audiences (Kneeland, 2005).

• Direct compliance has been granted by NYSERDA which gives assistance to the individuals of many states. Like NYSERDA has involved individuals in various training seminars and particularly contributed in more than 20 training workshops for agency procurement officers and business officials. Moreover, it also organized workshops focusing on the responsibilities of personnel and their operations along with providing facilities to the individuals (Kneeland, 2005).

• Various LEED workshops are endorsed by NYSERDA as well. It included SUNY-Buffalo and one for the department of New York regarding the Environmental Conservation and DASNY. The inclusion of OGS, DASNY, and NYSERDA with this new approach means that there are now various number of LEED accredited staff (Kneeland, 2005).

• The Buffalo's High Performance Building Guidelines by the State University of New York (SUNY) serve as a starting point for all the agencies and also the SUNY system which are affected by the orders of the executives. Moreover, there are future plans of NYSERDA for appointing a consultant for the purpose of organizing training programs while keeping in mind the guidelines regarding the programs to be conducted (Kneeland, 2005).

• NYC produces the guidelines for the design of environment and the Transit Authority which is a part of the Metropolitan Transit Authority and is subject to the orders of Executives. This is considered to be a model for development for the transit across the globe (Kneeland, 2005).

• An internal Green Building council was created by the members of the General Services and the purpose of this was to infer the Executive Order 111 and apply it to the working conditions as giving green building services to the consumers and also informing themselves and their customers regarding the principles of green building designs and its development. A newsletter was also published by the council and the aim of newsletter was to entail all the activities, disseminate information, and illustrate the stories of success (Industrial Economics, 2005).

• There is a limited and restricted statewide public outreach of the smaller case studies which are offered online on the website by the NYSERDA (Industrial Economics, 2005).

Sustainable design metrics

• A 20% improvement is required by all the new constructions. The new constructions comprise of 20,000 gross square feet or even more than that and they are designed, established, operated, managed and maintained in such a way by the members of the state that improvement becomes mandatory as per the guidelines of Executive Order 111. The performance of the energy efficiency comparative to the State Energy Conservation and Construction Code is required to achieve 20% more improvement. The federal Department of Energy DOE uses various models, programs for the conformity of the requirements (Cirelli, 2005).

• It is also important for the new building with area of more than 20,000 gross square feet to meet the criteria of the LEED certification and design and construct according to that criteria. For this it is not essential to have certification and the reason why certification is not required is particularly philosophical as well as practical. The reason is elaborated by comparing public and private sector. The public does not follow the strict and rigorous requirements, however private sector follows them more strictly and public sector does not require the certification of buildings like Green Building Tax Credit (Cirelli, 2005).

• There are criteria's for the buildings larger than 20,000 gross square feet. Those four criteria are recognized as part of the regulations of the Green Building Tax Credit. They cover the quality of the building as in the indoor air quality. While constructing the building it is important to keep in mind proper indoor air quality management plan. Moreover, having adequate operations and maintenance system for the indoor air quality is important along with using proper systems, equipment and mechanism for establishing a building (Cirelli, 2005).

• These standards are applicable to the buildings which are constructed privately and are designed by the private funds. However, these standards are not applied on the buildings prepared for the members of the state with leased facilities (Cirelli, 2005).

• The new buildings which are smaller than 20,000 gross square feet have different criteria and are considered to be a complaint with the Executive Order. The buildings with less than 20,000 gross square feet are aimed at integrating essential features of green design principles particularly the Planning of the site, Water, Energy, Materials and Resources, and Indoor Environmental Quality (Cirelli, 2005).

• LEED has been working so soundly for the public construction as per the standards and staff of NYSERDA state that they are going to refer LEED to states allowing for a similar structure and program. Though there have been some deficiencies by LEEDS, it is considered to be the best and most successful standard according to the officials of the New York. Most significantly it is taken as a standard which goes through a review process (Industrial Economics, 2005).

Standards codes and regulations

• In New York the codes for the buildings are not considered to be an obstacle for the public green buildings. There were minimum energy efficiency requirements established by the Energy Conservation and Construction Code in 2002. It consisted of the prescriptive and performance-focused measures along with the usage of new materials and the creative and innovative techniques for energy conserving (Industrial Economics, 2005).

• It was also observed that while greener is being given significance, there is still a huge requirement for the established codes to provide necessary guidance on structure of work (Industrial Economics, 2005).

Capital vs. operating budget

• In New York there are different capital and operating budgets and they are considered to be a challenge for green buildings. Since, it is taken as a challenge so this issue is taken into account by the working group of Green Building, Executive Order 111. It comprises of the staff from NYSERDA, the authority of Dormitory, State Construction Fund, Office of General Services, Department of Environmental Conservation, New York City Transit Authority, Metropolitan Transportation Authority, Department of Corrections, and the office of the Governor's (Industrial Economics, 2005).

• Quiet a lot of money has been received by the officials of the New York's Mental Health department on the basis of capital budgets that are subject to projected operations. A high number of capital budgets have been allotted on the anticipated operation and the cost savings for maintenance. The success of it is dependent on the credibility of the higher administration having division of the budget which is obtained by the blend of good and effective leadership and documentation. The documentation is required to be of high quality and must be created in association with the consultants of private sector and the finest resources available from various agencies of the public (NY Executive Order No. 111).

In early 1990's the office of mental health efforts were established focusing on the energy efficiency. This was primarily done as a reaction to the former Executive order which was issued by Governor Mario Cuomo. It led to a reduction in the energy consumption of the state. Moreover, the capability of the budgeting decisions with the credibility of the budgeting authorities was maintained for a period of time by the help of the culture. This was so as fostering the internal culture is considered as a great delight for the agencies and is taken as an achievement and also helps in improving the performance of the energy (NY Executive Order No. 111).

• A lifecycle cost analysis is asked by NYSERDA to conduct with the guidelines related with Executive Order 111. The members of the state are supposed to conduct this analysis on energy-efficiency and some of the other green measures. Despite the fact that these analysis are relatively slow specifically in New York. This discrepancy is recognized by NYSERDA and it is making efforts to improve its usage. It is seen that NYSERDA is making contracts with Athena Institute to conduct seminars focusing on the lifecycle analysis and making efforts for the development of the project (NY Executive Order No. 111).

• A new and incorporated approach has been used by NYSERDA for designs of the new buildings and their construction. It also offers seminars and hands-on assistance for the people who want to use these approaches (NY Executive Order No. 111).

• There are various incentives that are offered by NYSERDA. Those incentives provide assistance in designing, incrementing the overall costs and construction of the buildings which meet the design as defined under the guidelines for higher energy performances (Industrial Economics, 2005).

Incentives

• New York Energy Smart -- a New Construction Program -- was administered by NYSERDA and it governs the Benefits of the system. It also put forward the capital cost and incentives from the technical consulting to owners of the building and leaseholders to boost up the energy efficiency and performance of current and new buildings. This is primarily done in the commercial, institutional and industrial sectors. According to the latest incentive round made on 1 January 2005 there has been a sum of $10 million that is available for conducting technical analysis of energy efficiency along with some of the other green measures. It also makes up for the incremental capital costs which are connected with the procurement and setting up of equipment. This leads to the reduction of the use of electricity (NY Executive Order No. 111).

• It is observed by the staff of NYSERDA that the incentives are valuable and also raise the adoption of reliable design practices in construction of new buildings. It is seen that about 10% of the public and private projects having over 2,000 applications are on the rise in the new construction activities since September 1999. However, it is considered to be a burden to keep in notice the incentives being offered and observing that they are spent in a proper way (NY Executive Order No. 111).

• It is seen that the penetration rate is higher on percentage but not on dollar basis. This is specifically surrounded by public-sector construction because of the incentives that are available and rising awareness of NYSERDA (NY Executive Order No. 111).

• More incentives do surface from direct capital cost by the standard designs to expand with the improvements in building performances of the energy. There are three packages available for the direct incentives and they vary according to the size of the project and the stage of development (Industrial Economics, 2005).

One of the packages is "Pre-qualified equipment incentives." This is for small and medium size construction and for the ones which have gone from the phase of designing but just need some sort of revisions or alterations. A $50,000 incentive is benefited per project excluding the projects employing geothermal technology as they are qualified for about $120,000. After equipment is installed and project is completed they are then given incentive (Industrial Economics, 2005).

Another package is that of "Custom measure incentives." They are designed for projects whose design has not been finalized yet and still have to follow the opportunities of energy efficiency which are not being offered in the package of pre-qualified incentive. Here incentives are paid for those measures which face at least 10% increase in the Energy code requirements. Once the project is completed, this incentive is restricted with 50% of the approximate incremental cost of $120,000 per project. It also needs to have at least one year pay back to reduce the costs (Industrial Economics, 2005).

Another package of incentive is "Whole building design incentives." They are obtainable when a project is looking to have an interaction between improvement of energy efficiency and its effects on the needs of energy. It is pointed out that this incentive cannot be benefited if a project has gone through design phase because it focuses on the design of the complete building and is based on the performance of the building relative to the Energy Code. It is elaborated by an example that a building which is expected to perform more efficiently for about 20 to 25% more than the Energy code then it will receive $0.18 per kilowatt-hour (kWh) saved as well as $290 per kilowatt of peak in summer -- has load curtailment of about $160 per kW in winter. There is restriction for incentives at 60% estimated incremental costs up to $300,000 for each project and having a single measure cap of $200,000. However, it excludes a project which achieves LEED certification. There is a restriction of about 75% for LEED certified projects for capital cost incentives. This 75% of incremental costs up to $330,000 for certified projects which attain minimum of two points in the Optimize Energy Efficiency category. However, there could be a $375,000 for certified projects which attain at least four points in the Optimize Energy Efficiency category. The capital cost incentives of the complete building cannot be minimized to less than one year of payback period because of the custom measure incentive. This incentive is paid after documentation is done and project is completed and would only be paid for the buildings which exceed with at least 10% of the Energy Code requirements (Executive Order No. 111 Guidelines).

• The four of the additional direct capital cost incentives are available on peak of the incentive of the complete design of the building. However, a $7,500 flat rate incentive is given to the buildings with less than 50,000 square feet and a rate of $15,000 is given to the buildings of 50,000 square feet or more than this. These rates are for the buildings that have LEED certifications and have two points in the Optimize Energy Efficiency category. The rates assigned to equalize LEED compliance costs can be applied on any one of the costs (Executive Order No. 111 Guidelines).

Only those participants are included to whom the entire structure plan has already been given or convention measure inducements are qualified for the inducements. Furthermore, participants have to fit efficiently in the implementation of the procedures that are very helpful in managing the maximum consumption by the load. For the plans in the Consolidated Edison facility region, the inducement is less than of $100/KWatt of truncated maximum encumbrance or up to 60% of the rate increase for load truncation characteristics. The inducement is abridged to $50/KWatt in the regions other than ConEd. In order to obtain this inducement, schemes should also concur to partake for two years in a need decrease plan presented by the New York State Independent System Operator. This plan disburses partakers to decrease their energy utilization in durations of maximum encumbrance (Executive Order No. 111 Guidelines).

Participants to whom the entire structure plan is given or convention measure inducements can obtain up to $200,000 per plan (restricted at 60% of increase costs). This is intended for the planning and fitting of modernized aluminizing methodologies utilizing the energy of the sun and day lighting as well (Executive Order No. 111 Guidelines).

Plans that acquiesce to a post-tenancy assessment of building power recital under the limit of two years following the completion of the building can collect an extra inducement that is equivalent to the subordinate of 100% of increasing expenses or 10% of the auxiliary fund rate inducements that the plan has obtained (Executive Order No. 111 Guidelines).

Moreover, a lower interest credit plan is offered by NYSERDA for power effectiveness actions along with procedures that fulfill the standards of LEED or the Green Building Tax Credit (Executive Order No. 111 Guidelines).

• Besides directing fund rate inducements, five kinds of procedural advisory inducements are presented by NYSERDA (Executive Order No. 111 Guidelines).

An amount of up to $5,000 value of connoisseur procedural aid will be disbursed by NYSERDA in order to aid devising groups appraise chances to partake in the convention measure or entire building plan inducement agenda. If any procedural aid is needed, NYSERDA will fund charges above $5,000, limited to an utmost NYSERDA donation of $100,000 (Executive Order No. 111 Guidelines).

The initial $5,000 intended for structural perpetration facilities will be paid off by NYSERDA along with semi-costs of any perpetration charges above than $5,000 to an utmost donation of $50,000 (Executive Order No. 111 Guidelines).

Fifty percent of the charges will be paid off by NYSERDA, to an utmost limit of donations of $50,000, intended for the procedural support in the appraisal along with choice of non-power environment friendly steps. They can be explained as the steps that fulfill the standards of LEED or the Green Building Duty Credit (Executive Order No. 111 Guidelines).

In order to aid in recognizing climax load lessening chances along with building load restriction strategies or plans can, as well, exploit the procedural aid facilities that are provided by the approval of NYSERDA's permitted contractors. The initial $5,000 shall be paid by NYSERDA and fifty percent of all expenses above $5,000 to an utmost funding of $50,000 (Executive Order No. 111 Guidelines).

A devise group inducement is obtainable for plans in the entire structural devise inducement agenda that goes beyond State Energy Code recital prerequisites by a minimum of 15.1%. The ground for this inducement is predicted at the KWatt/hour reduction and attains a peak of $15,000 (at $0.04/kWh stored) for plans that attain an efficiency level that is at the minimum 30.1% more than Code needs (Executive Order No. 111 Guidelines).

• In the conditions of the present $10 million inducement circle, every single client is entitled for fund rate inducements for just a single scheme. $500,000 inducement is the utmost joint scheme restriction (Executive Order No. 111 Guidelines).

Bidding and award process

• As previously explained the liability for building up precise techniques to attain conformity with the environment friendly construction along with other prerequisites of Executive Order 111 sticks with solo state unit. For instance, DASNY has redrafted normal agreements in order to show environment friendly construction and charging conditions and principles have been developed by the New York City Transit Authority for themselves under the Design for the Environment group (Industrial Economics, 2005).

General lessons learned

• New York has attained Certification of LEED (version 2) for three of its remarkable architectural structures which include, the Region 1 Headquarters for the Department of Transportation (Silver), Department of Environmental Conservation (Silver) and for a community center on the SUNY Buffalo campus (Certified). These are certified and almost other nine architectural structures are recorded under USGBC. NYDEC and SUNNY, Transportation Department and State thruway Authority hold other buildings too which are already enlisted (Industrial Economics, 2005).