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Andrew Johnson

Academic Year: 2010-2011

LEED Building Design: Overview of free market and government incentives

Area of Concentration

  • Architecture and Urban Design

Key Terms:

LEED building design, economic feasibility, corporate accountability, environmental policy, incentives

Significance/Broader Impact:

While it is true that some of the population believes in their kind hearts that we have a duty as a citizen of the earth to do what we can to reduce damage to the environment. At the larger scale, a new paradigm is beginning to emerge. Corporate accountability and accountability of the state and nation is blending green technology which offers ways to reduce green house gas emissions, reduce water and energy consumption and contribute to a cleaner environment while making economically sound investments. In the midst of new legislation such as AB32 and AB375 which are targeting at reducing GHG’s across the state, LEED buildings have become a focus of the legislation. I have chosen to research the amount of government contributions to LEED certified buildings in the San Diego region. Literature reveals that LEED offer lower ecological footprints and long-term savings, but start up cost are also generally 5-7% higher which deter from complete readiness to adopt this building design. The purpose of my research is to determine the amount of government contributions towards LEED buildings are made in order to understand how incentives enable developers and infrastructure investors to overcome higher startup costs. I hope to offer countywide data on these available incentives that would allow for business owners, developers and planners to have a clearer understanding of the related funding process’s.

References

-Cost of green revisited: Reexamining the feasibility and cost impact of sustainable design in the light of increased market adoption
-A review on buildings energy consumption information
-Cradle to cradle: Remaking the way we make things
-Do LEED-certified buildings save energy? Yes, but…
-Doing Well by Doing Good? Green Office Buildings
-Funding Opportunities | Green Building |US EPA, Green building costs and financial benefits
-Green Buildings: An Overview of Progress
-Urbanization in developing countries: Current trends, future projections and key challenges for sustainability

Links:

U.S. Green Building Council, San Diego Chapter. http://www.usgbc-sd.org/
SDG&E LEED incetives. http://www.sdge.com/environment/sustainablecommunities/

Fall SRP Proposal Abstract

My research will be based upon the question “how much is the government contributing to financing LEED projects and what incentives exist?” Literature reveals that scholars, general population and government feel that sustainability is important for ensuring resources and a clean environment. However, sustainable building design that meets the needs of large businesses and corporations is more costly than standard building construction. I feel that in order for LEED building design to become more widespread, overcoming higher start costs will need to be addressed. Currently LEED building costs roughly 5%-8% more than standard construction methods. I The study will be conducted by collecting data on funding methods and tracking current locations of all LEED buildings within San Diego county. My research will contribute to the scholarly writings discussing the topic of sustainability. My findings will providing insight on what government incentives exist for building LEED and how effect these contributions are at lowering start up costs.

Winter Senior Research Project (SRP) Abstract

Abstract:                                                                                           
Green building design has become an increasingly popular way to apparently reduce energy, water, and resource consumption. Considering commercial LEED certified buildings (Leadership in Energy and Efficiency Design) cost anywhere from 3-10 percent more that standard building construction, this article attempts to dismantle the mechanisms that drive the LEED industry despite these higher start up costs. For the purpose of this study, I have classified incentives into two categories; 1.) State and local government incentives.  2.) Market driven incentives. Conclusions drawn from this study find that state and local governments offering incentives such as expedited permitting (Priority in building permit processing and plan review), tax reduction (particularly property tax abatements), density bonuses and reduced-cost building permits offered for LEED certified commercial buildings have not been widely adopted. Also, the corporate decision to “go green” is predicted by a succession of factors including the condition of ownership, target marketing, and the role of the company in relation to environmental stewardship. The research was composed through email, over the phone and in person interviews with LEED building project managers, architects, consultants, and other knowledgeable staff. This study has contributed to literature regarding the role of economics in the context green commercial infrastructure. My findings have been shared with planners, environmental activists, local developers and interested business professionals in order to provide information regarding the policy and market driven motives driving green technology.

Study's Major Findings and Contributions

My findings that contributed to the construction, environmental activist and planners knowledge base on what types of government incentives are offered through San Diego for buildings that are LEED certified. My research provides a foundation for understanding the processes of funding LEED buildings. This research has offered insight into what are popular ways that developers and companies to utilize government subsides to build LEED despite higher start up costs than standard building construction methods.

Evidence

I will collect two main types of evidence to answer my research question; data collection and interviews. My data collection will be a two part collection process, 1.) Collect the geographical coordinates of all LEED certified buildings in San Diego, and 2.) Collect the sources of funding for those buildings, particularly the amount of government contributions. I have contacted the USGBC but have not heard back. I was hoping they may already have the data I need. Otherwise, I will to contact the buildings by phone, email, or in person. Once I compile the data I plan to create shape files out of them and load it into a GIS. Once in the system, I will be able to analyze the building locations and affiliated attributes. By have this data in a GIS I will be able to determine the proportion of buildings that are currently funder in part by the government. From there, I will be able to draw conclusions. For example, 75% of LEED buildings receive ten percent of its financing through government subsidies and tax breaks.

Spatial Dimension

The spatial dimension of my project is centered around sustainable practices at the local level but these sustainable practices have global impacts. The idea of resources and energy conservation and environmental awareness was highlighted at the Rio Conference, Earths Summit of 1992. The discussion that took place identified excessive consumption by affluent populations and the damaging stress on the environment placed on the environment. Change starts at the local level. Here in San Diego, the design of infrastructure is beginning to reflect our world views. LEED certified buildings reflect the perception that sustainability and conservation are important when designing a building. my project reflects connects sustainable world view that many countries perceive as important with grass root change here in San Diego.

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