# Presentation: 731829

- Economic Costs and Benefits of Green Buildings
- October 14, 2004
- 							  Greg Kats 							  Capital E

- LEEDTM Point Distribution

- Five LEED credit categories

## LEED Accredited Professionals

## National Arboretum

## Owens Corning World Headquarters 

## Some Assumptions

- 20 year term
- 5% real interest rate
- $150-$250/ft2 building costs
- LEED as a basis
- Consistently conservative assumptions
- Conclusions generally applicable

## Reduced Energy Use in US Green Buildings 

**	****	****	****	****         ****Certified    Silver****	****Gold****	****Average****	****	**
**Energy Efficiency****	**	8%	30%	37%	28%
**On-Site Renewable Energy****	**0%	0%	4%	2%
**Green Power****	****	****	**10%	0%	7%	6%
**Total ****	****	****	****	**28%	30%	48%	36%
*Source: USGBC data, Capital E Analysis*

## Improved Ventilation Impact of Productivity (BIDS/Carnegie Mellon)

## Financial Benefits of Green Buildings Summary of Findings (per ft2)

| Category | 20-year Net Present Value |
| --- | --- |
| Energy Savings | $5.80 |
| Emissions Savings | $1.20 |
| Water Savings | $0.50 |
| Operations and Maintenance Savings | $8.50 |
| Productivity and Health Value  | $36.90 to $55.30 |
| Subtotal | $52.90 to $71.30 |
| Average Extra Cost of Building Green | (-3.00 to -$5.00) |
| Total 20-year Net Benefit | $50 to $65 |

***Source: Capital E Analysis***

## Additional Benefits

- Insurance
- Employment
- Security
- Equity
- Brand Value/Goodwill
- Reduced public infrastructure costs
- Competitiveness

## The green building insurance link

|  |  | Energy & Atmosphere | Professional
Liability | General
Liability | Business
Interruption | Property
Liability | Health
Insurance | Life
Insurance |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Prereq 1 | Fundamental Building Systems Commissioning (Required) | + | + | + |  | + |  |  |  |
|  | Prereq 2 | Minimum Energy Performance (Required) |  +/- | + | + |  |  +/- | + |  |  |
|  | Prereq 3 | CFC Reduction in HVAC&R Equipment (Required) |  |  |  |  |  |  | + |  |
|  | Credit 1.1 | Optimize Energy Performance, 20% New / 10% Existing (2 points) |  +/- | + | + |  |  +/- | + | + |  |
|  | Credit 1.2 | Optimize Energy Performance, 30% New / 20% Existing (2 points) |  +/- | + | + |  |  +/- | + | + |  |
|  | Credit 1.3 | Optimize Energy Performance, 40% New / 30% Existing (2 points) |  +/- | + | + |  |  +/- | + | + |  |
|  | Credit 1.4 | Optimize Energy Performance, 50% New / 40% Existing (2 points) |  +/- | + | + |  |  +/- | + | + |  |
|  | Credit 1.5 | Optimize Energy Performance, 60% New / 50% Existing (2 points) |  +/- | + | + |  |  +/- | + | + |  |
|  | Credit 2.1 | Renewable Energy, 5% (1 point) | - |  | + |  |  |  | + |  |

## Persian Gulf Oil Exports as a Percent ofWorld Oil Exports, 1970-2015 (percent)

- Office of Energy Efficiency and Renewable Energy

**Low Price**
**Case**

**Historical High**

**67.0**

- 72.1

- 75.2

- 70

- 60

- 40

- 50

- 30

- 80

**History**

**Projections**

- 1970

- 1975

- 1985

- 1995

- 2005

- 2015

## Green Communities Initiative         

**Green Capacity Building Fund**
**Up to $5mm**

**Green Loan Fund (EHFS)**
**Up to $50mm**

**Green Equity Fund (ESIC)**
**Up to $500mm**

**Green Policy and**
**Communications**

**Community Developers **
**and Home Builders**

**Policy Makers, Funders**
**Opinion Leaders**

- Low Cost Loans
- Predevelopment
- Construction / Rehab

- Competitively Priced Equity
- Construction / Rehab

- Advocacy
- Research, Evaluation
- Publications, Symposia

- Increased Use of Green Practices
- Lower Costs to Go Green
- Competitive Advantages

- Healthier Environments
- Lower Life Cycle Costs
- Better Opportunities

- New Coalitions
- New Ways of Thinking
- New Sources of Support

- Project Planning
- Technical Assistance, Training
- Green Building Features

_**Green Communities Initiative**_         

## 4 Times Square

## PNC Firstside Center

## One LibertyPlaza

## Manulife

## Thank you!

- For copies of report and summary slides please see: www.cap-e.com
- Questions?
- 							Contact:
- 							Greg Kats
- 							Capital E
- 							202 463-8469
- 							_[Gkats@cap-e.com](mailto:Gkats@cap-e.com)_
- 							www.cap-e.com