NEW BUSINESS SECTORS
Transcription
NEW BUSINESS SECTORS
N E W B U S I N E S S S E C TO R S ELECTRI International The Foundation for Electrical Construction, Inc. Emerging Green Markets Strategies for Electrical Contractors on LEED® and Green Building Projects Pennsylvania State University David Riley, PhD Michael Horman, PhD Jeffrey Park ELECTRI Council ELECTRI International—The Foundation for Electrical Construction, Inc. As of August 15, 2007 PRESIDENT’S COUNSEL $1,000,000 or more Albert G. Wendt* Cannon & Wendt Electric Co., Arizona Richard W. McBride* Southern Contracting Co., California National Electrical Contractors Association* Square D/Schneider Electric PROGRAM GUARANTOR $500,000 or more The Okonite Company DIPLOMAT $350,000 or more Electrical Contractors Trust of Alameda County San Diego County Chapter, NECA REGENTS $250,000 or more Contractors H.E. “Buck” Autrey* Ron Autrey Miller Electric Co., Florida John R. Colson Houston, Texas Robert E. Doran III* Capital Electric Construction, Kansas, In memory of Robert E. Doran, Jr. Nicholas Dutto Metropolitan Electrical Construction, California Jerrold H. Nixon Eric F. Nixon Maron Electric Co., Illinois Manufacturers ACCUBID Eaton Electrical Estimation McCormick Systems GOVERNORS $150,000 or more Contractors Arthur Ashley Ferndale Electric Co., Michigan Clyde Jones Center Line Electric, Inc., Michigan Michael Lindheim* Schwartz & Lindheim, California Richard R. Pieper, Sr.* PPC Partners, Inc., Wisconsin James A. Ranck J. Ranck Electric, Inc., Michigan Dan Walsh United Electric Co., Inc., Kentucky Chapters Illinois Chapter, NECA* Kansas City Chapter, NECA Los Angeles County Chapter, NECA Northern New Jersey Chapter, NECA Manufacturers and Distributors Thomas & Betts Corporation Panduit Corporation Chapters and Affiliates Chicago & Cook County Chapter, NECA Northeastern Illinois Chapter, NECA Northern Indiana Chapter, NECA Southeastern Michigan Chapter, NECA* * denotes founding member of ELECTRI’21 COUNCIL (1989–1990) iii FOUNDERS $100,000 or more Manufacturers and Distributors Advance Transformer/Philips Lighting Crescent Electric Supply Company Graybar Greenlee Textron Ruud Lighting Thomas Industries Utility San Diego Gas & Electric Contractors Ted C. Anton Newkirk Electric Associates, Inc., Michigan Ted N. Baker Baker Electric, Inc., California D. R. “Rod” Borden, Jr.* Tri-City Electric Co., Inc., Florida Daniel Bozick Daniel’s Electrical Construction Company, Inc., California Larry Brookshire* Fisk Acquisition, Inc., Texas Jay Bruce Bruce & Merrilees Electric Co., Pennsylvania Richard L. Burns* Burns Electric Company, Inc., New York Brian Christopher Oregon City, Oregon Larry Cogburn Cogburn Bros. Electric, Inc., Florida Michael Curran Red Top Electric Company Emeryville, Inc., California, In honor of George T. and Mary K. Curran Ben D’Alessandro L.K. Comstock & Co., Inc., New York Gene W. Dennis Universal Systems, Michigan Frank DiFazio DiFazio Electric, Inc., New York William T. Divane, Jr. Divane Bros. Electric Co., Illinois, In memory of William T. Divane, Sr. and Daniel J. Divane III iv FOUNDERS, CONTINUED Contractors Robert Egizii EEI Holding Corporation, Illinois Randy Fehlman * Gregg Electric, Inc., California Rex A. Ferry Valley Electrical Consolidated, Inc., Ohio Brad Giles Giles Electric Company, Inc., Florida Darrell Gossett ERMCO, Indiana John F. Hahn, Jr.* Peter D. Furness Electric Co., Delaware Michael Hanson Hunt Electric Corporation, Minnesota Eddie E. Horton Dallas, Texas Mark A. Huston Lone Star Electric, Texas Thomas G. Ispas Daniel’s Electrical Construction Company, Inc., California Donald W. Leslie, Sr. Johnson Electrical Construction Corporation, New York Richard J. Martin* Motor City Electric Co., Michigan Roy C. Martin, Jr. Triangle Electric, Michigan Edward C. Mattox Inland Electric Corporation, Illinois Michael Mazzeo Michael Mazzeo Electric Corp., New York Michael McAlister MRM Electrical/Communications, California James C. Mc Atee Electric Power Equipment Company, Ohio Timothy McBride* Southern Contracting Co., California Edward T. McPhee, Jr. McPhee, Ltd., Connecticut James B. Morgan, Sr. Harrington Electric Co., Ohio Harvey Morrison Pritchard Electric Co., West Virginia FOUNDERS, CONTINUED FOUNDERS, CONTINUED Contractors Contractors Joel Moryn Parsons Electric Company, Minnesota Walter T. Parkes* O’Connell Electric Co., New York Skip Perley TEC-Corp/Thompson Electric Co., Iowa In memory of Alfred C. Thompson Robert L. Pfeil South Bend, Indiana David Pinter Zwicker Electric Company, Inc., New York Carl J. Privitera, Sr. Mark One Electric Company, Inc., Missouri Dennis Quebe Chapel Electric Company, Ohio Stephen J. Reiten* M. J. Electric, Inc., Michigan Frank Russell Bagby & Russell Electric Co., Alabama In memory of Robert L. Russell Tim Russell R.W. Leet Electric, Inc., Michigan Frederic B. Sargent Sargent Electric Co., Pennsylvania Rocky Sharp Carl T. Madsen, Inc., Washington Turner Smith* Dillard Smith Construction Co., Tennessee Herbert Spiegel A tribute in memory of Flora Spiegel, Corona Industrial Electric, California Greg E. Stewart Superior Group, A Division of Electrical Specialists Ohio Jeff Thiede Oregon Electric Construction, Oregon Ronald J. Toomer Toomer Electrical Co., Inc., Louisiana Robert W. Truland Truland Systems Corporation, Virginia Robert J. Turner II Turner Electric Service, Inc., Michigan Angelo Veanes Ferguson Electric Construction Co., New York Michael H. Walker Walker Seal Companies, Virginia, In honor of Michael H. Walker and Frank W. Seal Mark Walter Christenson Electric Company, Oregon Brad Weir Kelso-Burnett Company, Illinois Jack W. Welborn Electrical Corporation of America, Missouri David A. Witz Continental Electrical Construction Co., Illinois NECA Chapters and Affiliates ACEN NECA Monterrey (Mexico) AMERIC Foundation (Mexico) American Line Builders Arizona Atlanta Boston Canadian Electrtical Contractors Association Central Indiana Central Ohio Greater Cleveland Greater Sacramento Greater Toronto Electrical Contractors Association Michigan Milwaukee Minneapolis NECA ACOEO Guadalajara (Mexico) New York City* North Central Ohio Northeastern Line Constructors North Florida North Texas Northern California Oregon-Columbia Oregon Pacific-Cascade Penn-Del-Jersey San Francisco Santa Clara Valley Southeastern Line Constructors South Florida South Texas Washington, D.C. Western Pennsylvania West Virginia-Ohio Valley v Acknowledgements The research team would like to acknowledge the contributions of the ELECTRI Council members and staff who contributed to this project, and ELECTRI International for providing the financial support. Significant guidance was provided by the project’s Task Force, made up of the following individuals: Stuart Binstock NECA National Rob Girard Square D Wayne Butler Pel-Bern Electric, Inc. Thomas Kyle Kyle Electric Rob Colgan NECA National Andy Porter Washington D.C. Chapter, NECA Bill Fischer Square D Jeff Thiede Oregon Electric Group This ELECTRI International research project has been conducted under the auspices of the Research Center. ©2007 ELECTRI International—The Foundation for Electrical Construction, Inc. All Rights Reserved The material in this publication is copyright protected and may not be reproduced without the permission of ELECTRI International. vi Table of Contents Executive Summary .....................................................................................................................................1 Introduction ..................................................................................................................................................3 1. What is a “Green” Building? An Introduction to Green Buildings and LEED® ..............................5 The Impact of the Building Industry on the Environment ..............................................................................................5 Green Building Features ..........................................................................................................................................................5 High Performance Buildings....................................................................................................................................................5 The Role of LEED® in Green Buildings................................................................................................................................5 Cost Premiums: Myth and Reality.........................................................................................................................................6 Key Tensions on Green Buildings ..........................................................................................................................................6 Additional References ..............................................................................................................................................................7 2. Market Trends:Why Are Owners Going Green?................................................................................9 Trends Among Building Owners............................................................................................................................................9 Green Mandates and Regional Markets...............................................................................................................................9 Incentive Programs .................................................................................................................................................................10 Current Market Opportunities for Electrical Contractors ..........................................................................................10 Future Directions for Energy and Electrical Systems in Green Buildings .................................................................10 Additional References............................................................................................................................................................11 3. LEED® 101: An Overview of the USGBC and the LEED® Rating System .....................................13 Why was LEED® Developed? ...............................................................................................................................................13 Types of LEED® Rating Systems...........................................................................................................................................13 Criteria in the LEED® Rating System .................................................................................................................................13 LEED® for the Electrical Contractor..................................................................................................................................13 LEED® Accredited Professionals:Why, How, and Who? .................................................................................................13 Alternatives to LEED®............................................................................................................................................................16 Are Green Buildings Here to Stay? ....................................................................................................................................16 Additional References............................................................................................................................................................16 4. The Role of the Electrical Contractor in Green Building Projects...............................................19 The Role of the Construction Industry in Green Building Projects ..........................................................................19 The Role of the Electrical Contractor in Green Building Projects ............................................................................19 Opportunities for Electrical Contractors in Green Building Markets .......................................................................20 Featured Market Opportunity: Renewable and Distributed Energy Systems ..........................................................21 Additional References............................................................................................................................................................21 vii EMERGING GREEN MARKETS: STRATEGIES FOR THE ELECTRICAL CONTRACTOR 5. viii Lessons Learned by Electrical Contractors on Green Building Projects .....................................23 Characteristics of Successful Green Building Projects ..................................................................................................23 What Could Go Wrong? ......................................................................................................................................................23 Forms of Risk on Green Building Projects .......................................................................................................................24 Benefits of Green Building Awareness for Electrical Contractors..............................................................................24 Concluding Recommendations............................................................................................................................................24 Additional References............................................................................................................................................................24 Executive Summary This report summarizes the results of “Emerging Green Markets: Strategies for Electrical Contractors on LEED® and Green Building Projects,” a project completed by a research team at Pennsylvania State University. The goal of the project was to develop an informative set of materials to help electrical contractors better understand the driving forces behind the expanding Leadership in Energy and Environmental Design (LEED®) and green building markets, and to help position the Electrical Contracting (EC) industry to take advantage of opportunities in this market. The research team completed a variety of activities designed to broadly assess and evaluate emerging opportunities for the electrical contractor on LEED® and green building projects. The team initially collected questionnaires assessing the general knowledge of EC employees and their knowledge of LEED® certification, their perception of their company’s understanding of LEED®, understanding of why a building owner would “go green”, and the EC employee’s view of how green building will affect the future of electrical contractors. Additional research experiences by the Penn State team performed to assess the role of contractors on green projects, trends in green building markets, and opinions of owners were also distilled and refined with an emphasis placed on the electrical contracting perspective. 1. What is a “green” building? An introduction to green buildings and LEED® 2. Market trends: Why are owners going green? 3. LEED® 101: An overview of the USGBC and the LEED® rating system 4. The role of the electrical contractor on green building projects 5. Lessons learned by electrical contractors on green building projects Each topic was investigated by the research team. This report summarizes the key research findings for each topic, lessons learned, and recommendations for electrical contractors who plan to work on LEED® or green building projects. After gathering information, the research team identified five topics that would best serve the needs of the EC industry: 1 Introduction This project was initiated the summer of 2005 during a meeting of ELECTRI International when a need for research in the area of green buildings was discussed and determined to be a priority topic for investigation. A research team at Penn State was assembled to conduct a study that would illuminate the opportunities and liabilities that existed in the emerging green building market, and describe lessons learned from contractors with experience on green building projects. During the ELECTRI International Task Force Formation meeting in January of 2006, 40 key leaders in the electrical contracting (EC) industry completed a brief survey to assess awareness of and experience with green building projects. The survey presented four statements and asked whether respondents agreed or disagreed with each (Table 1). This brief survey revealed a very limited understanding of green buildings and an acknowledgement of the potential importance of the market for green buildings. The results clearly indicated a need for educational materials for the EC industry on green building proj- ects. Specific objectives for the project were identified during the remainder of the Task Force Meeting. Project Objectives The primary objectives of the project were to: ■ Identify key requirements of the EC on LEED® and green building projects ■ Identify strategies to recognize and tap emerging markets for EC services ■ Develop materials to clearly communicate the research results Research Process The project objectives were met by: ■ Surveying case study projects (including owners, contractors, and design firms) ■ Conducting a market sector analysis ■ Filtering information and formatting key points for EC audience ■ Preparing, pilot testing, and finalizing research deliverables Table 1: Green Building Project Survey ■ ■ ■ ■ I have a good understanding of what makes a building green 13% agreed I believe my company has a good understanding of the LEED rating system ¤ I have a good idea why owners would choose to go green I believe that the green building movement will change or create new markets 6% agreed 42% agreed 100% agreed 3 1 What is a “Green” Building? An Introduction to Green Buildings and LEED® Green buildings are defined by efforts made to reduce building impacts on human health and the environment through the complete building life cycle— site planning, design, construction, operation, maintenance, and removal. The Impact of the Building Industry on the Environment The building industry is a substantial contributor to the consumption of energy and natural resources. In the U.S., buildings account for: 4. Conservation of materials and resources 5. Indoor environmental quality Common building systems of particular interest to electrical contractors on green building projects include dimming panels, photo sensors and daylighting systems, dimmable ballasts, and efficient light fixtures/lamps. In addition, higher quality and more efficient transformers, combined heat and power, and photovoltaic systems are gradually growing in popularity. ■ 65% of total U.S. electricity consumption High Performance Buildings ■ more than 36% of total U.S. primary energy use ■ 30% of total U.S. greenhouse gas emissions ■ 136 million tons of annual construction and demolition waste ■ 12% of total U.S. potable water use ■ 3 billion tons of raw materials use each year (40% of total global use of raw materials) High performance buildings are related but distinct from green buildings and are of increasing importance. These projects have been characterized by the Department of Energy as those with a particular emphasis on energy efficiency. Projects in which the building’s effect on the productivity of its occupants is a priority are also commonly referred to as high performance buildings. Green Building Features Features of green buildings fall into five commonly accepted categories: 1. Site selection and planning 2. Safeguarding water and improving water efficiency 3. Energy efficiency and use of renewable energy The Role of LEED® in Green Buildings The Leadership in Energy and Environmental Design (LEED® ) rating system was developed by the U.S. Green Building Council (USGBC). The LEED® rating system has provided a much needed measuring stick for how green a building is, based on performance in the five categories of green building features 5 EMERGING GREEN MARKETS: STRATEGIES FOR THE ELECTRICAL CONTRACTOR identified above. Since its inception, LEED® has made three significant contributions to the green building movement: 1. The USGBC helped educate a fairly uninformed building community about the impact of buildings on the environment and ways to reduce this impact. 2. LEED® certification of projects and LEED® accreditation of individuals provides a means for builders to demonstrate (and market to clients) an interest in environmentally conscious building construction. 3. By including occupant health and productivity in the definition of green buildings, the USGBC tapped a major economic incentive among building owners (worker salaries account for 90% of business costs). project costs is to seek areas of savings on projects that do not compromise green building goals. Like any other feature of a building, green building features must be given priority, and viewed as an integral part of the design and construction of the best building possible for an owner given budget. Key Tensions on Green Buildings Although many cost premiums can be avoided, green buildings require designers and contractors to do things a little differently than traditional projects. For those who are challenged by change, this can be taxing. However, the new and additional decision-making criteria and actions introduced on green building projects do not have to disrupt business operations. The following issues and terms are important elements of green building design and construction processes: ■ First cost versus life-cycle cost—Construction costs are usually less than 10% of a building’s “life-cycle” cost, which includes the cost of a building throughout its life (e.g., maintaining, staffing, and operating the building). Because construction costs are such a small part of a building’s total cost, decisions should be based on the building’s life cycle cost. In some (but not all) cases, this may mean paying additional first costs, but many additional first costs can be offset by savings in other phases of the project’s life. ■ Integrated design versus sequential design— Building green requires the design team to work together much more than in the past. Integrated systems, such as lighting systems with dimming controls that reduce cooling loads in buildings cannot be designed by an engineer in a cubicle. As a result, the design process on green buildings requires more interaction and communication between architecture and engineering disciplines. Cost Premiums: Myth and Reality A prevalent and damaging myth about green buildings is that they require higher initial costs. Research has shown that high levels of LEED® certification can be achieved at no additional cost. Research has also shown that when cost premiums are incurred, the sources usually lie in two major areas: 1. Inexperience with the LEED® certification process and green building features or systems, resulting in higher fees. 2. Green building features that are treated as addons, and are not well integrated into the project priorities. For most building systems, higher performance comes with a price increase. The desire for more efficient envelope materials and technical systems typically does require higher first cost investments. The key strategy that must be employed to reduce higher initial 6 WHAT IS A “GREEN” BUILDING? Design is less of sequential process, but rather iterative and inclusive, so systems can work in concert. Completed effectively, this process should yield a more complete and coordinated design that can reduce construction costs. ■ ■ System Complexity—Technical systems, such as electrical distribution and lighting controls are often more advanced on green building projects. In some cases, these systems are specified with performance specifications by a designer or engineer that is unfamiliar with these systems. As a result, additional research and design assist requirements for contractors on green building projects. Equipment selection—In green buildings there are more incentives to select equipment based on performance and life-cycle cost. Additional research is often needed to determine the lifecycle performance of equipment, and contractors may be asked to spend additional time researching and communicating information about systems and equipment to the owner in order to justify the higher initial cost. ■ New materials versus “tried-and-true”— Another area of resistance to green buildings is the use of alternative materials. Contractors who are familiar with standard materials may not want to invest their time in learning about new materials and methods. ■ Commissioning—In traditional building projects, commissioning occurs at the end of a project for testing and balancing of building systems. In contrast, commissioning is typically given a stronger emphasis in green construction, and is often conducted throughout the project in an effort to ensure the building will perform as intended. Additional References Glavinich, T, “Being Green: LEED,” Electrical Contractor, Nov 2005. NRDC (Natural Resources Defense Council), “Building Green from Principle to Practice,” http://www.nrdc.org/buildinggreen/ The Roundtable, Inc., “ Introduction to Green Building – Sustainable Design and Construction.” USGBC (U.S. Green Building Council), “An Introduction to the U.S. Green Building Council and the LEED® Green Build Rating System,” https://www.usgbc.org/ShowFile.aspx?DocumentID=7 42 USGBC (U.S. Green Building Council), “Leadership in Energy and Environmental Design,” http://www.usgbc.org/DisplayPage.aspx?CategoryID=1 9 Whole Building Design Guide, http://www.wbdg.org/index.php 7 2 Market Trends:Why are Owners Going Green? Engineering News Record describes the green building market as the fastest growing niche in North America (ENR 3.3.2006). It is important for electrical contractors to understand the drivers of this market. • K-12 schools and higher educational facilities • Healthcare facilities 3. To set an example in their community Commercial builders, developers—Builders and developers usually build green to distinguish themselves in the marketplace. Green building features attract tenants and improve lease and occupancy rates. In addition, tenants are often willing to pay higher rates for spaces in green buildings. Top markets for developers are often regionally driven, for example, the following areas are known to be stronger markets for “green” office space and condominiums/apartments: 4. To meet growing demands by tenants • Portland, Oregon Trends Among Building Owners Building owners that choose to pursue green building projects typically have a logical and economically driven reason. The most common reasons cited by owners are: 1. To improve the health and productivity of occupants 2. To reduce life-cycle energy and operating costs Green building owners tend to fall into one of two categories, which have slightly different motivations for going green. ■ • Federal, State, and Public facilities and mixeduse buildings Owner-occupants—Owner-occupants usually typically build green to lower operating and maintenance costs and increase employee productivity. In some cases, organizations have begun to adopt more environmentally conscious mission statements and operational goals, and seek green buildings to contribute to this goal. In addition, they may wish to polish their public image. The top markets for green buildings are owner-occupied and include: ■ • Seattle, Washington • New York, New York • Washington, D.C. Green Mandates and Regional Markets Mandates by city, state, and federal agencies have helped to stimulate growth in the demand for green buildings. A list of agencies with green building mandates is available on the Green Building Pages (see references). For example, any new or renovated stateowned facilities in California are required to be LEED® Silver certified. Such mandates have forced design and construction teams to educate themselves 9 EMERGING GREEN MARKETS: STRATEGIES FOR THE ELECTRICAL CONTRACTOR and build proficiency in the affected regions, which has helped to diminish the costs and barriers to wider adoption. The market for green building is expected to continue expanding, even into private sectors. Incentive Programs City, state, and federal incentive programs are also contributing to the regional growth of green building markets. These incentives come in the form of tax breaks and rebate programs for investments in green building features. In many cases, these programs are directly related to energy; for example, California rewards the achievement of high levels of energy efficiency. Many states also provide grants and rebates for the purchase of renewable energy systems. In U.S. cities where local, state, and federal incentives all apply – such as Seattle, Washington, Portland, Oregon, and San Diego – the expansion of the green building market is recognizable. Accordingly, emerging green building competencies among electrical contractors are also visible in these areas. The latest emerging trend found in some states is the assessment of penalties on building projects that do not meet minimum standards set in a region or city; for example, an increased cost for building permits,. Extensive references designed to track these incentives exist online (see reference list). The accompanying slides include several maps obtained from the Database of State Incentives for Renewables and Efficiency (DSIRE) that show which states have rebate and tax incentives. In addition, states with net metering rules and special solar licensing requirements are shown. DSIRE’s web site, a part of the North Carolina Solar Center, includes several other maps that show the spatial distribution of relevant state incentive programs. 10 Current Market Opportunities for Electrical Contractors This research identified four specific areas for potential market expansion for electrical contractors due to the increase in green building projects: ■ Design-build services—Green building projects benefit greatly from the experience offered by contractors who design, build, and maintain systems. Electrical contractors can develop distinct competitive advantages in the design of energy efficient power, lighting, and control systems. ■ Higher-end equipment and margins—Owners of green buildings are more likely to be interested in higher-end, more expensive equipment and fixtures. Installation of these higher-priced fixtures can improve profit margins. ■ Energy retrofit projects—Many facilities (even new ones) have inefficient lighting and electrical systems. The market demand for energy and lighting retrofit projects will continue to grow in order to reduce the life-cycle cost of building operation. ■ Expansion of distributed energy generation systems —Incentive programs such as renewable energy credits, and advancements in photovoltaic (PV) and wind generation systems will continue to expand the market for distributed renewable and combined heat and power (CHP) systems that produce electricity and heat on site using variable types of fuel. Future Directions for Energy and Electrical Systems in Green Buildings New forms of project delivery are emerging in which incentives for energy savings are included in contract terms. While regionally dependent on energy MARKET TRENDS deregulation, the EC industry will positioned to create an image as the provider of energy in buildings not just the installer of energy systems. Build OperateMaintain (BOT) contracts, lease agreements, and energy financing strategies will continue to open new enterprise opportunities for electrical contractors. LEED® and the General Contractor, http://www.ctgnet.com/energetics/News/Contractor's %20Perspective.pdf Additional References NRDC (Natural Resources Defense Council), “Energy Efficient and Renewable,” http://www.nrdc.org/ The Air Force Sustainable Facilities Guide, http://www.afcee.brooks.af.mil/dc/dcd/arch/rfg/ index.html Built Green, http://www.builtgreen.org/ Creating Sustainable Federal Buildings, http://www.eere.energy.gov/femp/pdfs/sustain_bldgs_ wbcst_qa.pdf Federal Center – Energy, http://www.fedcenter.gov/programs/energy/ Federal Facilities Environmental Stewardship, http://www.fedcenter.gov/ Green Building and Cities, http://www.globalgreen.org/programs/building.html North Carolina Solar Center, “Database of State Incentives for Renewables and Efficiency.” http://www.dsireusa.org/ Pentagon Renovation and Construction Program, http://renovation.pentagon.mil/sustainabledesign.htm Quick Guide to Running a Successful LEED® Project, http://www.edcmag.com/CDA/Archives/e8ebf34f5a697 010VgnVCM100000f932a8c0 Solar Electric Power Association, http://www.solarelectricpower.org/ State Energy Alternative, Net Metering http://www.eere.energy.gov/states/alternatives/ net_metering.cfm Q and A About Net Metering Green Building Pages, Inc. “Links and Resources – LEED Mandating Agencies.” http://www.greenbuildingpages.com/links/weblinks_ LEED.html http://www.consumerenergycenter.org/erprebate/net_ metering.html Green Power Pricing, http://www.eere.energy.gov/greenpower/markets/pricing.shtml?page=0 Wind Powering America State Activities, http://www.eere.energy.gov/windandhydro/ windpoweringamerica/state_activities.asp Wind Energy and Energy Policy, http://www.awea.org/policy/#State%20Policies Green Power Pricing: By State http://www.eere.energy.gov/greenpower/markets/ pricing.shtml?page=1 By Utility http://www.eere.energy.gov/greenpower/markets/ pricing.shtml?page=2 11 3 LEED® 101: An Overview of the USGBC and the LEED® Rating System LEED® stands for Leadership in Energy and Environmental Design. The LEED® rating system is based on accepted energy and environmental principles and strikes a balance between practices known to be effective and emerging concepts. The development of LEED® was initiated and is managed by the U.S. Green Building Council (USGBC), which represents all segments of the building industry. technologies or strategies to achieve the credit. One or more points are available for each credit, and points are achieved by meeting specified requirements. The categories, credits, and point allocations are included in Table 2 (next page). For new construction, there is a total of 69 points possible, and four levels of certification: ■ Certified 26-32 points Why was LEED® Developed? ■ Silver 33-38 points LEED® was developed to provide a metric for “greenness” and a framework to help move the U.S. building industry to more sustainable practices. Derived from other similar systems, LEED® is tailored to the U.S. marketplace and to budgets of U.S. design practices. ■ Gold 39-51 points ■ Platinum 52-69 points Types of LEED® Rating Systems Multiple LEED® rating systems have been designed for different types of facilities. The most established is LEED® NC (new construction), which is outlined in Table 2. LEED® EB (existing buildings) is also growing in popularity. Rating systems for laboratories, healthcare facilities, schools, multiple building campuses, and residential construction are in variable stages of trials and development. Criteria in the LEED® Rating System The LEED® rating system is based on five environmental categories. Each category is divided into subcategories, referred to as “credits.” For each credit, the rating system identifies the intent, requirements, and LEED® for the Electrical Contractor Over half of the LEED® points on a project are either directly or indirectly related to the work of electrical contractors. At a minimum, additional requirements for on site practices, material procurement, and recycling can be expected due to LEED® requirements. In other cases, the EC could be asked to play a major role in the design and value engineering, and even commissioning of all major building systems. The LEED® points that pertain most to electrical contractors are included in Table 3 (page 14). LEED® Accredited Professionals – Why, How, and Who? A major part of the USGBC and LEED® is the accreditation of individuals, referred to as LEED® accredited professionals (or LEED® AP). ■ Why—The familiarity a LEED® AP has with 13 EMERGING GREEN MARKETS: STRATEGIES FOR THE ELECTRICAL CONTRACTOR Table 2: LEED® Rating System for New Construction (version 2.2) Sustainable Sites Prereq 1 Construction Activity Pollution Prevention 14 Points Credit 1 2 3 4 5 6 7 8 Site Selection Development Density & Community Connectivity Brownfield Redevelopment Alternative Transportation: (1) Public Transportation Access, (2) Bicycle Storage & Changing Rooms, (3) Low-Emitting and Fuel-Efficient Vehicles, (4) Parking Capacity Site Development: (1) Protect or Restore Habitat, (2) Maximize Open Space Stormwater Design: (1) Quantity Control, (2) Quality Control Heat Island Effect: (1) Non-Roof, (2) Roof Light Pollution Reduction Water Efficiency 1 2 3 Water Efficient Landscaping: (1) Reduce by 50%, (2) No Potable Use or No Irrigation Innovative Wastewater Technologies Water Use Reduction: (1) 20% Reduction, (2) 30% Reduction Credit 1 2 3 4 5 6 Optimize Energy Performance On-Site Renewable Energy Enhanced Commissioning Enhanced Refrigerant Management Measurement & Verification Green Power Credit 1 Building Reuse: (1) Maintain 75% of Existing Walls, Floors & Roof, (2) Maintain 100% of Existing Walls, Floors & Roof, (3) Maintain 50% of Interior Non-Structural Elements Construction Waste Management: (1) Divert 50% from Disposal, (2) Divert 75% Materials Reuse: (1) 5%, (2)10% Recycled Content: (1) 10% (post-consumer + 1/2 pre-consumer), (2) 20% Regional Materials: (1) 10% Extracted, Processed & Manufactured Regionally, (2) 20% Rapidly Renewable Materials Certified Wood Energy & Atmosphere 1 2 3 Fundamental Commissioning of the Building Energy Systems Minimum Energy Performance Fundamental Refrigerant Management 1 Storage & Collection of Recyclables 3 4 5 6 7 Indoor Environmental Quality 1 2 Minimum IAQ Performance Environmental Tobacco Smoke (ETS) Control 1 to 10 1 to 3 1 1 1 1 1 point each 1 point each 1 point each 1 point each 1 point each 1 1 15 Points Credit 1 2 3 5 6 7 8 Outdoor Air Delivery Monitoring Increased Ventilation Construction IAQ Management Plan: (1) During Construction, (2) Before Occupancy Low-Emitting Materials: (1) Adhesives & Sealants, (2) Low-Emitting Materials, Paints & Coatings, (3) Carpet Systems, (4) Composite Wood & Agrifiber Products Indoor Chemical & Pollutant Source Control Controllability of Systems: (1) Lighting, (2) Thermal Comfort Thermal Comfort: (1) Design, (2) Verification Daylight & Views: (1) Daylight 75% of Spaces, (2) Views for 90% of Spaces 1 2 Innovation in Design LEED® Accredited Professional 4 Innovation & Design Process 1 1 1 point each 1 point each 1 1 point each 1 point each 1 point each 5 Points Credit Project Totals (pre-certification estimates) A checklist is available at: https://www.usgbc.org/ShowFile.aspx?DocumentID=1096 14 1 point each 1 1 point each 13 Points 2 Prereq 1 point each 1 point each 1 point each 1 17 Points Materials & Resources Prereq 1 point each 5 Points Credit Prereq 1 1 1 1 to 4 1 69 Points LEED® 101 Table 3: LEED® Points Most Relevant to Electrical Contractors LEED Credit Categories Impact on electrical contractor Sustainable Sites (SS) Prereq 1 Construction Activity Pollution Prevention This credit is devoted to minimizing erosion on site and site pollution caused by construction equipment. Special site rules for construction vehicles may be implemented to achieve this goal. Credit 4 Alternative Transportation: LowEmitting and Fuel-Efficient Vehicles Use of low-emitting and fuel-efficient vehicles may result in a charging station for electric vehicles to be included in the project. Research on specialty codes and systems may be required. Credit 8 Light Pollution Reduction Cut-off fixtures will need to be specified for outdoor lighting. Water Efficiency (WE) Credit 1 Optimize Energy Performance Energy modeling and energy-reducing strategies are needed to achieve this point. High-end switchgear, transformers, and distribution equipment can contribute to achieving this credit. Credit 2 On-Site Renewable Energy Solar photovoltaic, wind, solar hot water, and/or geothermal systems may be specified. These systems will require specialty equipment and electrical service. Credit 3 Enhanced Commissioning Additional commissioning efforts are taken such as the review of submittals by a commissioning agent, and provision of a manual for recommissioning of all building systems, including electrical systems. Credit 5 Measurement & Verification Ongoing efforts to monitor and improve the performance of energy and electrical equipment will be needed. Materials & Resources (MR) Credit 2 Construction Waste Management Jobsite recycling will be a priority. Construction waste removed from the jobsite will need to be tracked consistently by weight or volume for the entire jobsite. Credit 3 Materials Reuse Salvaged materials are used with a target of 5% of total project cost. The most common source for the EC is the re-lamping and re-use of light fixtures. MEP equipment is typically not included in this calculation. Credit 4 Recycled Content Post-consumer and post-industrial recycled content may be requested of copper and aluminum suppliers. Electrical contractors may need to work with suppliers to document recycled content. Credit 5 Regional Materials Documentation will be requested for materials that are extracted, processed, and manufactured within a 500-mile radius of the project. Indoor Environmental Quality Credit 3 Construction IAQ Management Plan Protection of absorptive materials during construction will be required. Eating and smoking will likely be banned inside the building during construction. Credit 4 Low-Emitting Materials: Adhesives & Sealants Volatile organic compounds (VOCs) will be limited for PVC, CPVC, ABS, plastic pipe welding, and other sealants and foams. Credit 6 Controllability of Systems: Lighting Lighting controls will be required for 90% of building occupants, which may require additional lighting controls. LEED® principles can help to manage the certification process on projects. LEED® accreditation can also signal personal or corporate commitment to green buildings. Many firms advertise the number of LEED APs employed by their organizations. ■ How —Step 1: The USGBC website provides the information needed for individuals to register for the an accreditation exam (www.usgbc.org) Step 2: Upon registering for the exam, a study guide is provided to the individual. Step 3: Multiplechoice exams are administrated online by the 15 EMERGING GREEN MARKETS: STRATEGIES FOR THE ELECTRICAL CONTRACTOR USGBC at testing sites. A score of 70% is required to pass. ■ Who—LEED® accreditation tends to appeal to the younger generation of professionals. It is also a good idea for someone in an estimating department to obtain accreditation, so their experience can be offered and marketed to clients. Alternatives to LEED® A growing number of projects are initiated with LEED® goals in mind, but the pursuit of a LEED® rating is abandoned due to the cost of documentation and certification of LEED® points. This issue has been addressed aggressively with a new online submission process for LEED® point documentation that has been implemented by the USGBC. It is also worth noting that several alternatives to the LEED® rating system have been developed: ■ Green Globes: Developed in Canada, Green Globes® has begun to penetrate the U.S. market, and is probably the closest competitor with LEED® in the U.S. While very similar to LEED® in the areas of green design, construction, and operation, Green Globes® provides more of a process guide for green building project teams, rather than a metric for the end product. This can be highly useful to inexperienced teams. ■ SPiRiT: The U.S. Army Corp of Engineers developed the Sustainable Project Rating Tool (SPiRiT), which is not as widely used as LEED®. ■ Healthcare Sector: The Green Guide for Health Care is a rating system designed to help healthcare facility meet needs for infection control and 24/7 energy use. Developed by the Center for Maximum Building Potential, it is currently in pilot stage and is being used voluntarily by a few select projects. 16 Are Green Buildings Here to Stay? Many professionals and owners have speculated that green buildings would be a short-lived fad. However, evidence is mounting that LEED® and green buildings are here to stay. The market growth and demand for green buildings is strong nationwide, and will continue to grow. Recently, the American Institute of Architects (AIA) and a growing number of mayors and governors have signed the 2030 Challenge – an initiative to reduce and eventually eliminate the use of fossil fuels in buildings by the year 2030. As design and construction teams gain experience, obtaining LEED® credits becomes easier and more routine. In response, the USGBC has begun to raise the bar for green buildings through new versions of the LEED® rating system. For example, improved energy efficiency is expected to be changed from an optional to a prerequisite point in the latest version of the LEED® rating system. Additional References USBGC, “An Introduction to the U.S. Green Building Council and the LEED® Green Build Rating System,” https://www.usgbc.org/ShowFile.aspx?DocumentID=7 42 USGBC, “Success Story,” http://www.adobe.com/ products/acrobat/pdfs/Green_Building.pdf USGBC “LEED® NC- Green Building Rating System for New Construction and Major Renovations Version 2.2.” https://www.usgbc.org/ShowFile.aspx?DocumentID=1 095 USGBC “LEED® NC Version 2.2 Registered Project Checklist,” https://www.usgbc.org/ShowFile.aspx?DocumentID=1 096 LEED® 101 USGBC “LEED® Professional Accreditation Candidate Handbook,” https://www.usgbc.org/ShowFile.aspx?DocumentID=2 158 USGBC “LEED® Policy Manual,” http://www.usgbc.org/ShowFile.aspx?DocumentID=20 39 2030 Challenge: http://www.architecture2030.org 17 4 The Role of the Electrical Contractor in Green Building Projects The Role of the Construction Industry in Green Building Projects While the green building movement has been led by the architectural design community, the role of construction professionals in green building projects is increasingly recognized as critical. Some completed research projects have helped to identify substantive value added by contractors, including: Develop value engineering alternatives that have one- to two-year paybacks over lowest first-cost designs through lower energy costs and reduced maintenance costs Preconstruction ■ Develop and maintain tracking documentation for LEED® point submissions ■ ■ Providing accurate preconstruction estimates and life-cycle cost estimates of alternative designs and systems Provide value engineering suggestions to improve energy efficiency, such as upgraded low-voltage transformers ■ ■ Locating building materials or products that have desirable green attributes Avoid suggesting lower performing light fixtures, transformers, and ballast ■ ■ Minimizing waste and recycling on the jobsite Offer to re-design over-complicated lighting controls to maintain intent and lower first cost ■ Managing indoor air quality during construction ■ Suggest prefabrication strategies that can reduce material waste ■ Commissioning and verifying performance of advanced building systems Construction The Role of the Electrical Contractor in Green Building Projects The most common roles of ECs in green projects are described below, ordered according to the timing in the project process. Design ■ ■ Provide accurate estimates of the performance of energy systems and power distribution systems for comparison purposes ■ Procure specialty materials (local and/or recycled) ■ Manage documentation of additional materials ■ Ensure adherence to special shipping and packaging requirements ■ Recycle on-site ■ Fulfill special general conditions requirements ■ Meet unique temporary and permanent power requirements ■ Interact with third-party commissioning and verification consultants 19 EMERGING GREEN MARKETS: STRATEGIES FOR THE ELECTRICAL CONTRACTOR To aid in the construction stage of green projects, a Field Guide for Sustainable Construction has been adopted and refined for electrical contractors. Table 4 includes a checklist of the key items electrical contractors can perform onsite to enhance their environmentally conscious behavior. Opportunities for Electrical Contractors in Emerging Green Building Markets Many opportunities exist for ECs that wish to expand their services and become leaders on green building projects. Examples of additional services that some ECs have begun to offer green building owners include: Table 4: LEED® Jobsite Checklist of Green Practices for Electrical Contractors Procurement Waste Prevention ____ Use contractors experienced in green building ____ ____ Give emphasis to design-build ____ Reuse undamaged demolished items, e.g., electrical boxes ____ Use subs with in-house fabrication capability ____ Return wire spools to manufacturer Protect equipment from dust and dirt ____ Require early installation of permanent electrical systems ____ ____ Use energy efficient and switchable lamps and for temporary lighting Recycling ____ Require electronic shop drawings ____ Use online document control systems Site/Environment ____ Place trench spoil uphill to prevent runoff ____ Select cut-off lighting for exterior use Reduce packaging ____ Recycle scrap metal and mercury lamps ____ Make recycling convenient by placing dumpsters close to work areas ____ Recycle NiCad batteries from power tools Building Material and Reuse ____ Use standardized modular construction techniques Material Selection ____ Use sealants that enable easy disassembly ____ ____ Salvage copper wire ____ Consider modular wiring systems Choose fluorescent lighting, which consumes 20% of the energy and lasts 13 times longer than incandescent lighting ____ Use photoluminescent emergency signage, which requires no wiring or power ____ Use wiring and devices with 20% recycled content ____ Ensure that electrical boxes are air tight so air leakage is reduced ____ Use transformers with bio-based fluids ____ Avoid mercury fittings Construction Technologies ____ Distribute documents electronically ____ Use on-screen quantity take-off tools for estimating ____ Use wireless and bluetooth technologies for data networking Health and Safety Energy ____ Recognize electrocution hazards, such as overhead and underground wiring Use GFCIs on all temporary receptacle circuits ____ Consider emerging technologies, such as solar and wind power for remote off-grid temporary power ____ ____ Verify incoming amperage and voltage and use capacitors to adjust power factor as needed Indoor Environment Quality ____ Use UL and IC rated fixtures for recessed lighting ____ Provide back-up power ____ Use Energy Star rated equipment ____ Seal openings to reduce drafting and energy loss ____ Provide integrated commissioning for all control, mechanical and electrical systems 20 THE ROLE OF THE ELECTRICAL CONTRACTOR IN GREEN BUILDING PROJECTS ■ Energy-efficient equipment analysis and selection ■ Assistance with energy modeling calculations ■ Value-added approaches to value engineering ■ Energy use analysis – redesign/refit building lighting systems ■ Cogeneration payback analysis ■ Energy rebate/incentives analysis ■ Building energy and lighting system commissioning ■ Helping owners obtain LEED® Innovation credits Featured Market Opportunity: Renewable and Distributed Energy Systems Yong for ELECTRI International. Additional References Cullen, S. “Whole Building Design Guide.” EnerModal Engineering, “Ten Steps to a Sustainable Building.” Field Guide for Sustainable Construction, http://renovation.pentagon.mil/Field%20Guide%20for%20Sustaina ble%20Con.pdf Green Building Solutions, http://www.greenbuildingsolutions.org/s_greenbuilding/index.asp Glavinich, T. and Yong, B., “Emerging Photovoltaic Market, Task 2: Defining Emerging PV Market.” The growth of alternative and renewable energy systems and the development of a distributed energy infrastructure can have a strong impact on the work of ECs on building projects. Renewable energy systems include, for example, combined heat and power systems (CHP), building integrated photovoltaic (BIPV) systems, and wind turbines. Electrical contractors must meet additional design, procurement, and construction requirements for each system. Example: Photovoltaic system construction activities: Glavinich, T. and Yong, B., “Emerging Photovoltaic Markets: Task 3: Investigating PV Technology.” 1. Install the PV system in coordination with roof/glazing contractors PSU Partnership for Achieving Construction Excellence and Pentagon Renovation and Construction Program Office, “Electrical Contractors Field Guide.” 2. Provide the balance of the system (BOS) 3. Interface the PV system with the building’s power distribution system 4. Provide energy storage devices (back-up batteries) Lane, K., “LEED® and the Electrical Contractor,” SASCO. Natural Resources Defense Council, “Sustainable Building Practices and Materials,” http://www.nrdc.org/ Natural Resources Defense Council, “Water Conservation,” http://www.nrdc.org/ North American Board of Certified Energy Practitioners, http://www.nabcep.org/ Public Technology, Inc. and USGBC, “ Sustainable Building Technology Manual: Green Building Design, Construction and Operation.” 6. Install metering devices for net metering utility-connection with the PV system Riley, D., Pexton, K. and Drilling, J. “The Procurement of Sustainable Construction Services in the U.S.,” UNEP Journal of Industry and Environment “Sustainable Building and Construction,” 26, (2-3), pp. 66-67. An excellent reference on technology of photovoltaic systems has been developed by Glavinich and Rosenberg, H. and Merson, A., “LEED® and the General Contractor.” 5. Install protective devices 21 5 Lessons Learned by Electrical Contractors on Green Building Projects Characteristics of Successful Green Building Projects ■ Many LEED® points, occupancy health, and energy savings can be achieved through advanced dimmable lighting designs. Electrical engineers and lighting designers admittedly overdesign and pad estimates in anticipation of inevitable value engineering measures. This can challenge the redesign on-the-fly efforts that are asked of an EC. ■ ECs without strong in-house engineering capabilities aligned with project size and scope will be challenged to help meet LEED® requirements. ■ The procurement of complex lighting systems, dimmable ballasts, and lamps requires extra effort and if not specified early, can result in schedule delays. ■ If not designed properly, complex lighting systems and controls can be labor intensive to commission. Increasingly, these systems do not work properly, requiring extensive call backs on green building projects. ■ Consulting engineers tend to be first-cost oriented, conservative and unaware of new materials and products that can improve energy efficiency. Knowledge of new products and appropriate cost calculations can enable the EC to play a more active role in adding value to the projects, and helping to meet LEED® goals. As completed LEED® project accumulate, the construction industry moves further down the learning curve, so others can take advantage of lessons learned. The following attributes have become characteristic of successful green building projects: ■ The idea of a green building was introduced at the inception of the project. ■ The core team is experienced in green buildings, rather than hiring a “green” consultant. ■ Integrated forms of contracts are used so that general, mechanical, and electrical contractors are involved during design. ■ Design-build or design-assist contracts are held by mechanical and electrical contractors. ■ More efficient systems and streamlined mechanical distribution systems are used. ■ Systems tend to be “right-sized” with less redundancy and waste from design and safety factors. What Could Go Wrong? Not surprisingly, as experience accumulates, a number of common pitfalls that can occur on green building projects have been revealed: ■ Indecision on the part of inexperienced owners and design teams on complex systems can result in late and costly changes. 23 EMERGING GREEN MARKETS: STRATEGIES FOR THE ELECTRICAL CONTRACTOR Forms of Risk on Green Building Projects Significant sources of risk exist on green building projects. The following forms of risk can threaten profitability of green building projects for electrical contractors. ■ Electrical contractors are provided with incomplete designs for lighting and electrical systems, which requires additional work to complete design and design coordination. ■ Electrical contractors may underestimate the time required for design assistance and clarifications and RFIs for new and complex energy and lighting systems. ■ Electrical contractors may overlook additional labor costs incurred to conform to non-standard general conditions requirements such as special packaging and on-site recycling. Benefits of Green Building Awareness for Electrical Contractors In summary, an electrical contractor’s awareness of green building and LEED® is expected to have the following advantages: ■ Potential repeat business and competitive advantage on future projects. ■ Potential for higher profit on higher-end systems and fixtures. ■ Potential for reduced risk by increased involvement during design. ■ Less damage, more productive, and safer job sites that are cleaner and better organized. ■ Closing out jobs faster because of increased commissioning. ■ The potential for increased goodwill generated by 24 using socially and environmentally responsible practices. Concluding Recommendations The final element of this research involved an interview with a former electrical contractor turned developer in Portland Oregon. Nathan Philips of W & G Development had early experience on several highprofile green projects that included advanced electrical and solar energy systems. As a developer, he has become a strong advocate for green buildings. In his perspective, green buildings provide a significant opportunity for market differentiation among electrical contractors. Philips provided the following advice for contractors interested in a progressive and proactive stance in the green building market: ■ Get educated about green and sustainable market drivers. ■ Develop a comprehensive understanding of sustainable building design processes. ■ Seek to add value to project teams through appropriate and timely assistance with green goals. ■ Become indispensable to green building teams through technical expertise. ■ Develop repeat business among owners that value green design. ■ Develop expertise to be a leader in the emerging market of green buildings. Additional References Lierly, R. and Kivela, K., “Integrating Sustainable Design and Construction Concept into FY00 Homestead AFB Project,” ADAL Fire Station.” ELECTRI International 3 Bethesda Metro Center Suite 1100 Bethesda, Maryland 20814-5372 Tel: 301-215-4538 Fax: 301-215-4536 Web: www.electri.org © 2007 ELECTRI International— The Foundation for Electrical Construction, Inc. All rights reserved. Index No. F2708