Background

Overview

Worldwide, buildings account for nearly 45% of all energy use, 35% of all CO2 production, 80% of all potable water withdrawal, and 50% of materials and resources consumption. Each year, the United States develops an area equal to the size of Connecticut.(1) Apart from the resources we devote to buildings, Americans also spend about 90% percent of their time indoors.(2) Clearly, construction and design choices (window placement, building orientation, insulation, etc.) can significantly impact our health and that of the environment.

The U.S. Green Building Council has published a standardized rating system for commercial buildings that measures the “greenness” of a building and assigns a Leadership in Energy and Environmental Design (LEED) rating based on a number of verifiable measures. In the U.S., LEED is the most widely-used and accepted criteria in measuring the environmental and health impact of new or retrofitted buildings. One report found that LEED-certified green buildings use an average of 30% less energy than their non-green counterparts, resulting in an average annual savings of $60,000 for a 100,000 sq. ft. building.(3)

Other benefits, which can be more difficult to quantify, include increased health and safety of workers and occupants resulting in less sick days, increased productivity, and higher retention rates for businesses. Although some businesses have reported productivity gains up to sixteen percent, most studies documenting workers indicate that green buildings can produce a 1%-7% increase in worker productivity. Even using the conservative 1% estimate, this translates into a projected $600 savings per employee per year.(3)

There has been some initiative at the federal level to encourage green building practices. Senate Bill 207, otherwise known as the Smith-Feinstein Bill, was introduced in 2001 and would have established tax incentives for incorporating green building elements into commercial and residential buildings. In arguing for the bill’s adoption, proponents contended that tax incentives were necessary and desirable to encourage innovation that would improve overall quality of life. As an example, they pointed to similar economic incentives that had encouraged individuals and businesses to adopt energy-efficient light bulbs and appliances, ultimately leading to increased popularity and significant decreases in energy usage.(4)

Provisions for tax incentive legislation were also included in the federal Energy Policy Act of 2003 (HR 6). The bill focuses mostly on energy production but does include tax incentives for energy efficient new homes and retrofits for existing homes, as well as cost/technology-based tax credits for businesses. The incentives offer a certain amount of credit for the use of specific technologies or for meeting certain percentages of energy reduction.(5) HR 6 is still being debated and is not expected to pass in its original form.

State legislative action surrounding green building has taken several forms. Some states have offered income tax credits while others have modified their building codes. Still others have adopted the LEED voluntary standards created by the U.S. Green Building Council(6) or the International Code Council’s International Energy Conservation Code (IECC). More than sixteen states currently have some form of standardized energy efficiency requirements for buildings. For a comprehensive summary of state green building-related initiatives refer to the State Activity Page for this issue.

Green building practices present an incredible opportunity for designers, individuals, businesses, and the government to take proactive roles toward positive change without sacrificing comfort, aesthetic appeal, or profit. The following summary outlines three actions that states can take, and which many states are already taking, to encourage innovation in and implementation of green building techniques.

Mandatory Continuing Education

Twenty-eight states currently have Mandatory Continuing Education (MCE) requirements for architects seeking re-licensure. Among these, twenty-one stipulate that some or all of the credits necessary for re-licensure fall under the category of Health, Safety, and Welfare (HSW), a broadly-defined area of learning that does not preclude education about sustainable design, but does not make it a priority either.

In order for a Continuing Education System (CES) to be accredited as a provider of HSW credits, 75 percent of the subject matter it covers must specifically address one or more HSW-related topics. There are a total of 29 topics to choose from, only four of which are directly or indirectly related to the subject of sustainable design.

In some states with MCE provisions, the Department of State exercises the ability to stipulate specific subject areas in which architects must complete course work in order to be eligible for re-licensure (with the exception of HSW requirements, what an architect studies is otherwise dictated solely by his or her discretion and what is available). This creates a mechanism whereby educational priorities may be set forth when new or previously overlooked building-related threats of significance surface and must be addressed quickly.

The sample bill included in this package makes green design a mandatory subject of study for architects seeking re-licensure.

Green Building Tax Credit

A handful of states have established a green building tax credit and a number of green building tax credit bills are currently pending. The bills award a tax credit for buildings that comply with certain green building standards, which vary slightly from state to state. Some states have adopted the LEED standards, and require buildings to achieve a certain LEED rating in order to be eligible for a tax credit. Other states have established their own requirements that must be met in order to be eligible for a green building tax credit. The amount of tax credit awarded generally depends on the size of the building and the extent that the building is “green.”

The sample bill included in this package establishes a tax credit for new buildings that meet the LEED standards.

Green Building Requirements for State Buildings

A number of bills have been proposed in states that would require buildings that are funded by the state to be constructed to conform to certain green building standards. The standards used vary depending on the bill, but most either explicitly use the LEED standards or adopt standards very similar to the LEED standards.

The sample bill included in this package requires new buildings owned in whole or in part by the state to be constructed and maintained according to LEED standards.