Staff: Terzah N. Nasser
Counsel to the Committee
Russell Unger
Counsel
Sara Marks
Policy Analyst
David Pechefsky
Finance Analyst
THE COUNCIL
REPORT OF THE INFRASTRUCTURE DIVISION
MARCEL VAN OOYEN, DEPUTY CHIEF-OF-STAFF
COMMITTEE ON HOUSING AND BUILDINGS
Madeline Provenzano, Chair
September 27, 2004
PROPOSED INT. NO. 324-A: By: The Speaker (Council Member Miller) and Council Members Gennaro,
Brewer, Clarke, Fidler, Gerson, Gioia, James, Koppell, Liu, Martinez, Nelson,
Recchia, Sanders, Stewart, Weprin, Serrano, Gonzalez, Comrie, Yassky,
Moskowitz, Reyna, Foster, Perkins, McMahon and Addabbo.
TITLE: In relation to requirements for city-owned and city-funded green buildings.
ADMINISTRATIVE CODE: Amends Title 27 by adding a new chapter 5 and by adding a new subchapter 20 to chapter 1.
BACKGROUND AND INTENT:
I. Introduction
On September 27,
2004, the Committee on Housing and Buildings, chaired by Council Member
Madeline Provenzano, will conduct a hearing on Proposed Int. No. 324-A, a Local
Law to amend the Administrative Code of the City of New York, in relation to requirements for city-owned and
city-funded green buildings, and on Int. No. 438, a Local Law to amend
the Administrative Code of the City of New York, in relation to the expedited review of permits or other approvals for
green buildings.[1] The Committee expects to hear from representatives of
the Administration and other persons interested in this legislation.
II. Environmental and Health Impacts of Buildings
Enormous quantities of resources are used during building
construction, renovation and operation, the production of which has substantial
environmental impacts. In addition,
many indoor building materials release hazardous toxins, impairing indoor air
quality and reducing occupant health and productivity. The environmental impact of commercial and
residential buildings includes the following:[2]
· 65.2% of the total United
States electricity consumption
· 36% of the total United States
primary energy use
· 30% of the total United States
greenhouse gas emissions
· 136 million tons of
construction and demolition waste in the United States (approx. 2.8
lbs/person/day)
· 12% of potable water used in
the United States
· 40% (3 billion tons annually)
of raw materials use globally.
Since much of New York City’s electricity is produced within the City, and most buildings use oil or natural gas for their heat and hot water, energy consumption by buildings translates directly into greater local pollution, including the emission of sulfur dioxide, nitrogen oxides, particulate matter, carbon dioxide, and mercury. These pollutants contribute to respiratory disease, heart disease, smog, acid rain, and climate change. Moreover, as energy demand rises, so does the City’s reliance on dirty, inefficient power plants, and so rises the City’s and the nation’s dependence on foreign oil and natural gas.
III. Definition of Green Building
Modern architects and engineers can reduce the health and environmental impacts of buildings by designing “high-performance buildings” or “green buildings.” According to the U.S. Green Building Council (USGBC), “green building” is “design and construction practices that significantly reduce or eliminate the negative impact of buildings on the environment and occupants in five broad areas [of design]: sustainable site planning; safeguarding water and water efficiency; energy efficiency and renewable energy; conservation of materials and resources; and indoor environmental quality.”[3] There is no simple checklist, however, for constructing green buildings because what makes sense for one building project may not make sense for another, and the issues of greatest importance in one geographical area may be less important elsewhere. For example, for a building that uses a chiller for cooling, which require large quantities of water, it may be economical to recycle wastewater, something that may be deemed an excessive investment in a building with less sizable water needs. Similarly, in areas with severe water shortages it may be more important to emphasize water conservation than in New York City where energy use may be of greater concern due to the siting of power plants within the city and limitations on transmission capacity into the city.
The U.S. Green Building Council, the nation’s foremost coalition of real estate and environmental organizations working to promote green buildings, has developed a green building rating system known as LEED (Leadership in Energy and Environmental Design). Buildings receive LEED certification if their designs score sufficient "points" in the five general design areas listed above. Depending on the number of points a building receives, it can be rated Certified, Silver, Gold or Platinum. LEED has designed a rating system for new construction and major renovation, and will release new rating systems for commercial interiors and existing building in the fall of 2004. A rating system for core and shell construction will be released in 2005, and LEED for homes will be released in 2006. To date, 1,558 building projects, nationwide, are seeking LEED certification with the USGBC, and 130 have completed certification.[4]
IV. Benefits of Green Building
The benefits of green building include reduced impact on natural resources, financial savings, improved occupant comfort and health, and reduced strain on local infrastructure.[5] As compared with conventional construction, green buildings typically use less water and energy, reduce air pollution, use fewer resources and produce less waste, have better indoor air quality and are associated with improvements in worker productivity.
Many of these benefits lead to financial savings. One study estimated that the financial savings over a 20-year period from energy, emissions, water, waste, building commissioning, and productivity total nearly $50 per square foot.[6] According to the study, the financial savings from reduced energy consumption alone exceed average increased costs associated with green buildings. Unlike private developers who would not receive many of these financial benefits, including benefits from reduced air pollution or reduced stress on infrastructure such as water treatment facilities, New York City would receive many of these financial benefits.
New York City owns or leases approximately 4000 buildings, and spends over $7 billion on capital construction annually. As a result, the City’s adoption of green building practices would have positive effects beyond just City projects. If the City begins constructing green buildings, it will introduce the practice to the countless architects, builders and developers who work on city projects. The City’s enormous purchasing power would not only encourage and nurture green building in the construction industry, but also among downstream industries that supply building materials.
V. First Costs of Green Building
Costs studies conducted in the last two years, including studies for the State of California and the United States General Services Administration, reveal that constructing buildings according to LEED standards results in little or no increase in upfront capital costs.
An analysis of 33 LEED-certified buildings for the State of California in 2003 revealed an average LEED cost premium of less than 1.84%, with a 0.66% premium for building that achieved the most basic level of LEED certification and 2.11% for building that achieved LEED Silver.[7] Moreover, the study estimated a ten times return on the investment in green building design. The study examined LEED-certified offices and schools, comparing each building’s actual cost with the estimated cost of the same building if designed and constructed conventionally. The study also examined the energy, waste, and water savings associated with green building, as well as productivity and health benefits.
A recently published study conducted for the U.S. General Services Administration (“GSA”) estimated similar first costs for green design.[8] The GSA study determined that building a new courthouse to LEED Certified would add -0.4% to 1.0% to construction costs, and building to LEED Silver would add -0.03% to 4.4% to construction costs. The study also found that modernizing an office building to LEED Certified would add 1.4% to 2.1% to construction costs, and for LEED Silver would add 3.1% to 4.2% to construction costs.
Finally, a 2004 study of 93 conventional and 45 LEED certification seeking libraries, laboratories, and academic classroom buildings found no statistical difference in the cost per square foot of constructing buildings whether LEED was used or not.[9] The study concluded that the cost per square foot of LEED and non-LEED buildings falls within the same dollar range and that “many projects can achieve sustainable design within their initial budget, or with very small supplemental funding.”[10]
VI. Green Building Laws in Other Jurisdictions
Numerous
federal, state, and local governments and agencies have adopted LEED or have
otherwise required that buildings be built according to green building
criteria. As shown below, among the
many cities to have adopted LEED, most require city buildings to achieve a LEED
Silver rating, limit the requirements to buildings above 5,000-10,000 square
feet, and apply the requirements to both new construction and renovations.
|
SUMMARY OF GREEN
BUILDING LAWS / POLICIES IN SELECT CITIES |
||||
City
|
Date Adopted |
Level of LEED
Required |
Minimum Square Footage |
Type of
Construction |
|
Atlanta |
Dec. 1, 2003 |
LEED Silver |
5,000 |
New & Renovated |
|
Austin |
June 8, 2000 |
LEED Silver |
None |
New & Renovated |
|
Boulder |
2001 |
LEED Silver |
Unknown |
New & Renovated |
|
Chicago |
June 2004 |
LEED Certified |
Unknown |
New & Renovated |
|
Dallas |
Jan. 22, 3003 |
LEED Silver |
10,000 |
New |
|
Los Angeles |
April 19, 2002 |
LEED Certified |
7,500 |
New |
|
Portland, Oregon |
Jan. 10, 2001 |
Portland LEED Certified |
None[11] |
New & Renovated |
|
San Diego |
|
LEED Silver |
5,000 |
New & Renovated |
|
San Francisco |
May 18, 2004 |
LEED Silver |
5,000 |
New & Renovated |
|
San José |
June 19, 2001 |
San José LEED Certified |
10,000 |
New & Renovated |
|
Seattle |
Feb. 22, 2000 |
LEED Silver |
5,000 |
New & Renovated |
In New York City, numerous
governmental agencies have embraced green building technology concepts. The Battery Park City Authority has begun
utilizing green building guidelines modeled on LEED for all commercial and
residential building construction in Battery Park City. The Department of Design and Construction
has also developed High Performance Building Guidelines and has begun applying
the guidelines for schools, libraries and other facilities. The New York City Transit Authority has
adopted green building guidelines for all new transit facilities, including the
Second Avenue Subway. Moreover, the
Lower Manhattan Development Corporation and the Port Authority of New York and
New Jersey have developed sustainable design guidelines and have designated
“environmental planning” as one of five general requirements for the
redevelopment of the World Trade Center site and surrounding area.
VII. Proposed Int. No. 324-A
Bill section one
contains a statement of findings and purpose. The use of green building criteria will substantially reduce the
City’s electricity consumption, air pollution and water use, as well as improve
occupant health and worker productivity.
The bill would employ the use of green building standards in the
construction and renovation of city-owned and city-funded buildings.
Bill section two
creates a new Chapter 5 entitled “Green Building Standards” in Title 27 of the
Administrative Code of the City of New York.
Chapter 5 is comprised of four new sections.
Section 27-5001 contains definitions to be used in conjunction with the pre-existing definitions found in section 27-232 of the Building Code. The new terms defined are:
“city-owned and city-funded construction project” which means the construction, alteration, or change in occupancy group classification of any city-owned or city-funded building or space undertaken by or on behalf of any city agency.
“city-owned building or space” which means any building or space owned or to be owned by the city, any building or space to be constructed on property owned by the city, or any building or space to be constructed on property purchased or to be purchased by the city.
“city-funded building
or space” which means any building or space whose construction, alteration, or
design is paid for or financed in whole or in part directly by city funds
amounting to at least thirty percent of the cost of the project.
“green building guidelines” which means a rating system or proscriptive[12]
rules for building construction that takes into account building site selection,
water efficiency, energy and atmosphere, materials and resources, and indoor
environmental quality.
“LEED Certified Silver”
which means having received official documentation from the United States Green
Building Council verifying that a building or space is LEED Certified Silver or
higher under a LEED green building rating system.
“LEED green building rating system” which means the most recent version of the Leadership in Energy and Environmental Design building rating system developed by the United States Green Building Council, including any building rating system developed for New York City, that is applicable to the subject building or space.
“LEED energy and atmosphere credit one” which means the credit point under the LEED green building rating system intended to achieve increased energy performance.
“life cycle cost” which means the net present value
of the design, construction, operation and maintenance costs of a building
calculated over a 30-year life cycle.
“substantially altered” which means alterations where the cost of making alterations in any twelve-month period to a building or space shall exceed thirty percent of the value of such building or space. For the purpose of applying the foregoing provision, the value of the building or space shall be determined in accordance with section 27-119 of this code.
Section 27-5002 establishes new requirements for all city-owned and city-funded construction projects and provides that such projects shall only receive funding from the city and may only be approved by any city agency if they will meet the requirements set forth in this section. Subdivision (a) of section 27-5002 establishes the levels of LEED certification that must be achieved by city-owned and city-funded construction projects. These new requirements are as follows:
(1) New or substantially altered buildings or spaces classified in the following occupancy groups must be LEED Certified Silver: B-1 (moderate hazard storage), B-2 (low hazard storage), C (mercantile), E (business), F-1a (assembly – theater, etc.), F-1b (assembly – churches, concert halls, etc.), F-3 (assembly – outdoors), F-4 (assembly – restaurants, etc.), H-1 (restrained institutional), or H-2 (incapacitated institutional).
(2) New or substantially altered buildings or spaces
classified in occupancy group G (education) must be LEED Certified Silver,
however, if any New York State agency develops green building guidelines for
educational facilities, and the commissioner of design and construction finds
that constructing educational facilities according to such guidelines will
result in greater health and environmental benefit than constructing
educational facilities according to LEED Certified Silver, new or substantially
altered buildings or spaces classified in occupancy group G may instead follow
the requirements of such state guidelines.
(3) Buildings or spaces classified in occupancy
groups are not required to be LEED certified: A (high hazard), D-1 (moderate
hazard industrial), D-2 (low hazard industrial), F-2 (outdoors), J-1 (hotels),
J-2 (apartments), J-3 (one and two-family dwellings), or K (miscellaneous).
Subdivision (b) of section 27-5002 contains the minimum energy performance levels that all city-owned and city-funded construction projects must achieve. These performance levels are as follows:
(1) New buildings with a floor area greater than
forty thousand square feet classified in occupancy groups B-1 (moderate hazard
storage), B-2 (low hazard storage), C (mercantile), E (business), F-1a
(assembly – theater, etc.), F-1b (assembly – churches, concert halls, etc.),
F-3 (assembly – outdoors), F-4 (assembly – restaurants, etc.), G (education),
H-1 (restrained institutional), or H-2 (incapacitated institutional) shall
reduce design energy cost by a minimum of 20% as determined by the methodology
prescribed in LEED energy and atmosphere credit one.
(2) Substantially altered buildings with a floor area
greater than forty thousand square feet classified in occupancy groups B-1
(moderate hazard storage), B-2 (low hazard storage), C (mercantile), E
(business), F-1a (assembly – theater, etc.), F-1b (assembly – churches, concert
halls, etc.), F-3 (assembly – outdoors), F-4 (assembly – restaurants, etc.), G
(education), H-1 (restrained institutional), or H-2 (incapacitated institutional)
shall reduce design energy cost by a minimum of 10% as determined by the
methodology prescribed in LEED energy and atmosphere credit one.
Subdivision (c) of section 27-5002 establishes
exemptions from the requirements of new section 27-5002 for buildings or spaces
with a floor area of less than ten thousand square feet.
Section 27-5003 contains a reporting requirement for the Commissioner of Design and Construction, in conjunction with the Commissioner of Buildings, to submit a report annually to the Council and the Mayor by September 1, at the latest, with respect to city-owned and city-funded green buildings and spaces, providing a list of such buildings and spaces, the level of LEED certification such buildings and spaces have achieved, and the estimated first and life cycle cost per square foot of such buildings and spaces; and an assessment of the health, environmental and energy-related benefits from such buildings and spaces.
Section 27-5004 authorizes the Commissioner of Design and Construction to enforce the provisions of new Chapter 5 in Title 27 with respect to city-owned buildings or spaces and the Commissioner of Buildings to enforce these same provisions with respect to city-funded buildings or spaces.
Bill section three establishes a new Subchapter 20 entitled “Green Building Standards” in Chapter 1 of Title 27 of the Administrative Code of the City of New York. This new subchapter contains one new section, 27-1080, to provide for the enforcement of green building standards and reiterates that the Commissioner of Buildings is empowered to enforce new Chapter 5 of Title 27 with respect to any city-funded building or space, as this term is defined in such chapter.
Bill section four provides that the bill become effective on January 1, 2006 and authorizes the Commissioner of Design and Construction and the Commissioner of Buildings to take all necessary actions for the implementation of this law, including the promulgation of Rules prior to the effective date.