emerging green markets

N E W B U S I N E S S S E C TO R S

Emerging Green MarketsStrategies for Electrical Contractors on LEED®

and Green Building Projects

Emerging Green MarketsStrategies for Electrical Contractors on LEED®

and Green Building Projects

ELECTRI InternationalThe Foundation for Electrical Construction, Inc.ELECTRI InternationalThe Foundation for Electrical Construction, Inc.

Pennsylvania State UniversityDavid Riley, PhDMichael Horman, PhDJeffrey Park

Pennsylvania State UniversityDavid Riley, PhDMichael Horman, PhDJeffrey Park

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

ContractorsH.E. “Buck” Autrey*

Ron AutreyMiller Electric Co., Florida

John R. ColsonHouston, 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

Chapters and Affiliates

Chicago & Cook County Chapter, NECA

Northeastern Illinois Chapter, NECA

Northern Indiana Chapter, NECA

Southeastern Michigan Chapter, NECA*

Manufacturers

ACCUBID

Eaton Electrical

Estimation

McCormick Systems

GOVERNORS $150,000 or more

Contractors

Arthur Ashley Ferndale Electric Co., Michigan

Clyde JonesCenter Line Electric, Inc., Michigan

Michael Lindheim*Schwartz & Lindheim, California

Richard R. Pieper, Sr.*PPC Partners, Inc., Wisconsin

James A. RanckJ. 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

* denotes founding member ofELECTRI’21 COUNCIL (1989–1990)

iii

E L E C T R I C o u n c i lELECTRI International—The Foundation for Electrical Construction, Inc.

As of August 15, 2007

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. AntonNewkirk Electric Associates, Inc., Michigan

Ted N. BakerBaker 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 BruceBruce & Merrilees Electric Co., Pennsylvania

Richard L. Burns*Burns Electric Company, Inc., New York

Brian ChristopherOregon City, Oregon

Larry CogburnCogburn Bros. Electric, Inc., Florida

Michael CurranRed Top Electric Company Emeryville, Inc., California,

In honor of George T. and Mary K. Curran

Ben D’AlessandroL.K. Comstock & Co., Inc., New York

Gene W. DennisUniversal Systems, Michigan

Frank DiFazioDiFazio 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

FOUNDERS, CONTINUED

Contractors

Robert Egizii EEI Holding Corporation, Illinois

Randy Fehlman *Gregg Electric, Inc., California

Rex A. FerryValley Electrical Consolidated, Inc., Ohio

Brad GilesGiles Electric Company, Inc., Florida

Darrell GossettERMCO, Indiana

John F. Hahn, Jr.*Peter D. Furness Electric Co., Delaware

Michael HansonHunt Electric Corporation, Minnesota

Eddie E. HortonDallas, Texas

Mark A. HustonLone Star Electric, Texas

Thomas G. IspasDaniel’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. MattoxInland Electric Corporation, Illinois

Michael MazzeoMichael Mazzeo Electric Corp., New York

Michael McAlisterMRM Electrical/Communications, California

James C. Mc AteeElectric 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 MorrisonPritchard Electric Co., West Virginia

iv

FOUNDERS, CONTINUED

Contractors

Joel MorynParsons Electric Company, Minnesota

Walter T. Parkes* O’Connell Electric Co., New York

Skip PerleyTEC-Corp/Thompson Electric Co., Iowa

In memory of Alfred C. Thompson

Robert L. PfeilSouth Bend, Indiana

David PinterZwicker Electric Company, Inc., New York

Carl J. Privitera, Sr.Mark One Electric Company, Inc., Missouri

Dennis QuebeChapel Electric Company, Ohio

Stephen J. Reiten* M. J. Electric, Inc., Michigan

Frank RussellBagby & Russell Electric Co., Alabama In memory of

Robert L. Russell

Tim RussellR.W. Leet Electric, Inc., Michigan

Frederic B. SargentSargent Electric Co., Pennsylvania

Rocky SharpCarl 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 ThiedeOregon Electric Construction, Oregon

Ronald J. ToomerToomer Electrical Co., Inc., Louisiana

Robert W. Truland Truland Systems Corporation, Virginia

Robert J. Turner II Turner Electric Service, Inc., Michigan

Angelo VeanesFerguson Electric Construction Co., New York

FOUNDERS, CONTINUED

Contractors

Michael H. WalkerWalker Seal Companies, Virginia, In honor of Michael H.

Walker and Frank W. Seal

Mark WalterChristenson Electric Company, Oregon

Brad WeirKelso-Burnett Company, Illinois

Jack W. WelbornElectrical Corporation of America, Missouri

David A. WitzContinental Electrical Construction Co., Illinois

NECA Chapters and Affiliates

ACEN NECA Monterrey (Mexico) AMERIC Foundation (Mexico)

American Line BuildersArizona Atlanta Boston

Canadian Electrtical Contractors AssociationCentral Indiana

Central OhioGreater Cleveland

Greater SacramentoGreater Toronto Electrical Contractors Association

MichiganMilwaukee

MinneapolisNECA ACOEO Guadalajara (Mexico)

New York City*North Central Ohio

Northeastern Line ConstructorsNorth FloridaNorth Texas

Northern CaliforniaOregon-Columbia

Oregon Pacific-CascadePenn-Del-Jersey

San FranciscoSanta Clara Valley

Southeastern Line ConstructorsSouth FloridaSouth Texas

Washington, D.C.Western Pennsylvania

West Virginia-Ohio Valley

v

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 guid-

ance was provided by the project’s Task Force, made up of the following individuals:

vi

Acknowledgements

Stuart BinstockNECA National

Wayne ButlerPel-Bern Electric, Inc.

Rob ColganNECA National

Bill FischerSquare D

Rob GirardSquare D

Thomas KyleKyle Electric

Andy PorterWashington D.C. Chapter, NECA

Jeff ThiedeOregon 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.

vii

Executive Summary .....................................................................................................................................1

Introduction ..................................................................................................................................................3

1. What is a “Green” Building? An Introduction to Green Buildings and LEED®..............................5The Impact of the Building Industry on the Environment ..............................................................................................5Green Building Features ..........................................................................................................................................................5High Performance Buildings....................................................................................................................................................5The Role of LEED® in Green Buildings................................................................................................................................5Cost Premiums: Myth and Reality .........................................................................................................................................6Key Tensions on Green Buildings ..........................................................................................................................................6Additional References ..............................................................................................................................................................7

2. Market Trends:Why Are Owners Going Green?................................................................................9Trends Among Building Owners............................................................................................................................................9Green Mandates and Regional Markets...............................................................................................................................9Incentive Programs .................................................................................................................................................................10Current Market Opportunities for Electrical Contractors ..........................................................................................10Future Directions for Energy and Electrical Systems in Green Buildings .................................................................10Additional References............................................................................................................................................................11

3. LEED® 101:An Overview of the USGBC and the LEED® Rating System.....................................13Why was LEED® Developed? ...............................................................................................................................................13Types of LEED® Rating Systems...........................................................................................................................................13Criteria in the LEED® Rating System .................................................................................................................................13LEED® for the Electrical Contractor..................................................................................................................................13LEED® Accredited Professionals:Why, How, and Who? .................................................................................................13Alternatives to LEED®............................................................................................................................................................16Are Green Buildings Here to Stay? ....................................................................................................................................16Additional References............................................................................................................................................................16

4. The Role of the Electrical Contractor in Green Building Projects...............................................19The Role of the Construction Industry in Green Building Projects ..........................................................................19The Role of the Electrical Contractor in Green Building Projects ............................................................................19Opportunities for Electrical Contractors in Green Building Markets .......................................................................20Featured Market Opportunity: Renewable and Distributed Energy Systems ..........................................................21Additional References............................................................................................................................................................21

Table of Contents

EMERGING GREEN MARKETS: STRATEGIES FOR THE ELECTRICAL CONTRACTOR

5. Lessons Learned by Electrical Contractors on Green Building Projects .....................................23Characteristics of Successful Green Building Projects ..................................................................................................23What Could Go Wrong? ......................................................................................................................................................23Forms of Risk on Green Building Projects .......................................................................................................................24Benefits of Green Building Awareness for Electrical Contractors..............................................................................24Concluding Recommendations............................................................................................................................................24Additional References............................................................................................................................................................24

viii

This report summarizes the results of “Emerging

Green Markets: Strategies for Electrical Contractors on

LEED® and Green Building Projects,” a project com-

pleted by a research team at Pennsylvania State

University. The goal of the project was to develop an

informative set of materials to help electrical contrac-

tors 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 collect-

ed questionnaires assessing the general knowledge of

EC employees and their knowledge of LEED® certifi-

cation, their perception of their company’s under-

standing 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 electri-

cal contractors. Additional research experiences by the

Penn State team performed to assess the role of con-

tractors 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.

After gathering information, the research team

identified five topics that would best serve the needs of

the EC industry:

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.

Executive Summary

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 under-

standing of green buildings and an acknowledgement of

the potential importance of the market for green build-

ings. The results clearly indicated a need for education-

al 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 ObjectivesThe primary objectives of the project were to:

n Identify key requirements of the EC on

LEED® and green building projects

n Identify strategies to recognize and tap emerg-

ing markets for EC services

n Develop materials to clearly communicate the

research results

Research ProcessThe project objectives were met by:

n Surveying case study projects (including own-

ers, contractors, and design firms)

n Conducting a market sector analysis

n Filtering information and formatting key

points for EC audience

n Preparing, pilot testing, and finalizing

research deliverables

3

Table 1: Green Building Project Survey

n I have a good understanding of what makes a building greenÓ 13% agreed

n I believe my company has a good understanding of the LEED¤ rating systemÓ 6% agreed

n I have a good idea why owners would choose to Ò go greenÓ 42% agreed

n I believe that the green building movement will change or create new marketsÓ 100% agreed

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 Industryon the Environment

The building industry is a substantial contributor

to the consumption of energy and natural resources.

In the U.S., buildings account for:

n 65% of total U.S. electricity consumption

n more than 36% of total U.S. primary energy

use

n 30% of total U.S. greenhouse gas emissions

n 136 million tons of annual construction and

demolition waste

n 12% of total U.S. potable water use

n 3 billion tons of raw materials use each year

(40% of total global use of raw materials)

Green Building FeaturesFeatures of green buildings fall into five common-

ly accepted categories:

1. Site selection and planning

2. Safeguarding water and improving water effi-

ciency

3. Energy efficiency and use of renewable energy

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 daylight-

ing systems, dimmable ballasts, and efficient light fix-

tures/lamps. In addition, higher quality and more effi-

cient transformers, combined heat and power, and

photovoltaic systems are gradually growing in popu-

larity.

High Performance BuildingsHigh performance buildings are related but dis-

tinct 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 per-

formance buildings.

The Role of LEED® in GreenBuildings

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 perform-

ance in the five categories of green building features

5

1What is a “Green” Building? An Introduction to Green Buildings and LEED®


identified above. Since its inception, LEED® has made

three significant contributions to the green building

movement:

1. The USGBC helped educate a fairly unin-

formed 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 con-

scious 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).

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® certifi-

cation 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 add-

ons, and are not well integrated into the proj-

ect priorities.

For most building systems, higher performance

comes with a price increase. The desire for more effi-

cient envelope materials and technical systems typical-

ly does require higher first cost investments. The key

strategy that must be employed to reduce higher initial

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 BuildingsAlthough 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 cri-

teria and actions introduced on green building projects

do not have to disrupt business operations. The fol-

lowing issues and terms are important elements of

green building design and construction processes:

n 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.

n 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.

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.

n 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 engi-

neer that is unfamiliar with these systems. As a

result, additional research and design assist

requirements for contractors on green building

projects.

n 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 life-

cycle performance of equipment, and contractors

may be asked to spend additional time research-

ing and communicating information about sys-

tems and equipment to the owner in order to jus-

tify the higher initial cost.

n 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 materi-

als and methods.

n Commissioning—In traditional building proj-

ects, 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 ReferencesGlavinich, 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=742

USGBC (U.S. Green Building Council), “Leadership in

Energy and Environmental Design,”

http://www.usgbc.org/DisplayPage.aspx?CategoryID=19

Whole Building Design Guide,

http://www.wbdg.org/index.php

7

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.

Trends Among Building OwnersBuilding owners that choose to pursue green

building projects typically have a logical and economi-

cally 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

3. To set an example in their community

4. To meet growing demands by tenants

Green building owners tend to fall into one of two

categories, which have slightly different motivations

for going green.

n Owner-occupants—Owner-occupants usually

typically build green to lower operating and

maintenance costs and increase employee pro-

ductivity. 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:

• Federal, State, and Public facilities and mixed-

use buildings

• K-12 schools and higher educational facilities

• Healthcare facilities

n 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:

• Portland, Oregon

• Seattle, Washington

• New York, New York

• Washington, D.C.

Green Mandates and RegionalMarkets

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 man-

dates is available on the Green Building Pages (see ref-

erences). For example, any new or renovated state-

owned facilities in California are required to be

LEED® Silver certified. Such mandates have forced

design and construction teams to educate themselves

2Market Trends:Why are OwnersGoing Green?

9


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 ProgramsCity, 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 effi-

ciency. Many states also provide grants and rebates for

the purchase of renewable energy systems.

In U.S. cities where local, state, and federal incen-

tives all apply – such as Seattle, Washington, Portland,

Oregon, and San Diego – the expansion of the green

building market is recognizable. Accordingly, emerg-

ing green building competencies among electrical con-

tractors 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 exam-

ple, an increased cost for building permits,.

Extensive references designed to track these incen-

tives 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 spa-

tial distribution of relevant state incentive programs.

Current Market Opportunities forElectrical Contractors

This research identified four specific areas for

potential market expansion for electrical contractors

due to the increase in green building projects:

n Design-build services—Green building projects

benefit greatly from the experience offered by

contractors who design, build, and maintain sys-

tems. Electrical contractors can develop distinct

competitive advantages in the design of energy

efficient power, lighting, and control systems.

n Higher-end equipment and margins—Owners of

green buildings are more likely to be interested in

higher-end, more expensive equipment and fix-

tures. Installation of these higher-priced fixtures

can improve profit margins.

n 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.

n Expansion of distributed energy generation sys-

tems —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 andElectrical Systems in GreenBuildings

New forms of project delivery are emerging in

which incentives for energy savings are included in

contract terms. While regionally dependent on energy

10

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 Operate-

Maintain (BOT) contracts, lease agreements, and ener-

gy financing strategies will continue to open new

enterprise opportunities for electrical contractors.

Additional References 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

Green Building Pages, Inc. “Links and Resources –

LEED Mandating Agencies.”

http://www.greenbuildingpages.com/links/weblinks_LEED.html

Green Power Pricing,

http://www.eere.energy.gov/greenpower/markets/pric-ing.shtml?page=0

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

LEED® and the General Contractor,

http://www.ctgnet.com/energetics/News/Contractor's%20Perspective.pdf

North Carolina Solar Center, “Database of State

Incentives for Renewables and Efficiency.”

http://www.dsireusa.org/

NRDC (Natural Resources Defense Council), “Energy

Efficient and Renewable,” http://www.nrdc.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/e8ebf34f5a697010VgnVCM100000f932a8c0

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

http://www.consumerenergycenter.org/erprebate/net_metering.html

Wind Energy and Energy Policy,

http://www.awea.org/policy/#State%20Policies

Wind Powering America State Activities,

http://www.eere.energy.gov/windandhydro/windpoweringamerica/state_activities.asp

11

3LEED® 101: An Overview of the USGBCand the LEED® Rating System

LEED® stands for Leadership in Energy and

Environmental Design. The LEED® rating system is

based on accepted energy and environmental princi-

ples 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.

Why was LEED® Developed?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.

Types of LEED® Rating SystemsMultiple 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 labora-

tories, 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 environ-

mental categories. Each category is divided into sub-

categories, referred to as “credits.” For each credit, the

rating system identifies the intent, requirements, and

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:

n Certified 26-32 points

n Silver 33-38 points

n Gold 39-51 points

n Platinum 52-69 points

LEED® for the Electrical ContractorOver half of the LEED® points on a project are

either directly or indirectly related to the work of elec-

trical contractors. At a minimum, additional require-

ments 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 contrac-

tors 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).

n Why—The familiarity a LEED® AP has with

13


Sustainable Sites 14 PointsPrereq 1 Construction Activity Credit 1 Site Selection 1

Pollution Prevention 2 Development Density & Community Connectivity 13 Brownfield Redevelopment 14 Alternative Transportation: (1) Public Transportation Access,

(2) Bicycle Storage & Changing Rooms, (3) Low-Emitting and Fuel-Efficient Vehicles, (4) Parking Capacity 1 point each

5 Site Development: (1) Protect or Restore Habitat,(2) Maximize Open Space 1 point each

6 Stormwater Design: (1) Quantity Control, (2) Quality Control 1 point each7 Heat Island Effect: (1) Non-Roof, (2) Roof 1 point each8 Light Pollution Reduction 1

Water Efficiency 5 PointsCredit 1 Water Efficient Landscaping: (1) Reduce by 50%,

(2) No Potable Use or No Irrigation 1 point each2 Innovative Wastewater Technologies 13 Water Use Reduction: (1) 20% Reduction, (2) 30% Reduction 1 point each

Energy & Atmosphere 17 PointsPrereq 1 Fundamental Commissioning Credit 1 Optimize Energy Performance 1 to 10

of the Building Energy Systems 2 On-Site Renewable Energy 1 to 32 Minimum Energy Performance 3 Enhanced Commissioning 13 Fundamental Refrigerant 4 Enhanced Refrigerant Management 1

Management 5 Measurement & Verification 16 Green Power 1

Materials & Resources 13 PointsPrereq 1 Storage & Collection of Credit 1 Building Reuse: (1) Maintain 75% of Existing Walls,

Recyclables Floors & Roof, (2) Maintain 100% of Existing Walls,Floors & Roof, (3) Maintain 50% of Interior Non-Structural Elements 1 point each

2 Construction Waste Management: (1) Divert 50% from Disposal, (2) Divert 75% 1 point each

3 Materials Reuse: (1) 5%, (2)10% 1 point each4 Recycled Content: (1) 10% (post-consumer +

1/2 pre-consumer), (2) 20% 1 point each5 Regional Materials: (1) 10% Extracted, Processed &

Manufactured Regionally, (2) 20% 1 point each6 Rapidly Renewable Materials 17 Certified Wood 1

Indoor Environmental Quality 15 PointsPrereq 1 Minimum IAQ Performance Credit 1 Outdoor Air Delivery Monitoring 1

2 Environmental Tobacco 2 Increased Ventilation 1Smoke (ETS) Control 3 Construction IAQ Management Plan: (1) During Construction,

(2) Before Occupancy 1 point each4 Low-Emitting Materials: (1) Adhesives & Sealants, (2) Low-Emitting

Materials, Paints & Coatings, (3) Carpet Systems, (4) Composite Wood & Agrifiber Products 1 point each

5 Indoor Chemical & Pollutant Source Control 16 Controllability of Systems: (1) Lighting, (2) Thermal Comfort 1 point each7 Thermal Comfort: (1) Design, (2) Verification 1 point each8 Daylight & Views: (1) Daylight 75% of Spaces, (2) Views for 90% of Spaces 1 point each

Innovation & Design Process 5 PointsCredit 1 Innovation in Design 1 to 4

2 LEED® Accredited Professional 1

Project Totals (pre-certification estimates) 69 Points

A checklist is available at: https://www.usgbc.org/ShowFile.aspx?DocumentID=1096

14

Table 2: LEED® Rating System for New Construction (version 2.2)

LEED® 101

15

LEED® principles can help to manage the certifi-

cation process on projects. LEED® accreditation

can also signal personal or corporate commit-

ment to green buildings. Many firms advertise

the number of LEED APs employed by their

organizations.

n 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: Multiple-

choice exams are administrated online by the

LEED Credit Categories Impact on electrical contractor

Sustainable Sites (SS)

Prereq 1 Construction Activity This credit is devoted to minimizing erosion on site and site pollution caused by construction Pollution Prevention equipment. Special site rules for construction vehicles may be implemented to achieve this goal.

Credit 4 Alternative Transportation: Low- Use of low-emitting and fuel-efficient vehicles may result in a charging station for electric vehiclesEmitting and Fuel-Efficient 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: Volatile organic compounds (VOCs) will be limited for PVC, CPVC,ABS, plastic pipe welding, and Adhesives & Sealants 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.

Table 3: LEED® Points Most Relevant to Electrical Contractors


USGBC at testing sites. A score of 70% is

required to pass.

n Who—LEED® accreditation tends to appeal to

the younger generation of professionals. It is also

a good idea for someone in an estimating depart-

ment 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® rat-

ing 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:

n 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.

n SPiRiT: The U.S. Army Corp of Engineers devel-

oped the Sustainable Project Rating Tool

(SPiRiT), which is not as widely used as LEED®.

n 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.

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 efficien-

cy is expected to be changed from an optional to a

prerequisite point in the latest version of the LEED®

rating system.

Additional ReferencesUSBGC, “An Introduction to the U.S. Green Building

Council and the LEED® Green Build Rating System,”


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.”


USGBC “LEED® NC Version 2.2 Registered Project

Checklist,”


16

LEED® 101

USGBC “LEED® Professional Accreditation Candidate

Handbook,”


USGBC “LEED® Policy Manual,”

http://www.usgbc.org/ShowFile.aspx?DocumentID=2039

2030 Challenge: http://www.architecture2030.org

17

The Role of the ConstructionIndustry 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:

n Providing accurate preconstruction estimates

and life-cycle cost estimates of alternative

designs and systems

n Locating building materials or products that

have desirable green attributes

n Minimizing waste and recycling on the jobsite

n Managing indoor air quality during construc-

tion

n Commissioning and verifying performance

of advanced building systems

The Role of the Electrical Contractorin 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

n Provide accurate estimates of the performance of

energy systems and power distribution systems

for comparison purposes

n 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

n Develop and maintain tracking documentation

for LEED® point submissions

n Provide value engineering suggestions to improve

energy efficiency, such as upgraded low-voltage

transformers

n Avoid suggesting lower performing light fixtures,

transformers, and ballast

n Offer to re-design over-complicated lighting con-

trols to maintain intent and lower first cost

n Suggest prefabrication strategies that can reduce

material waste

Construction

n Procure specialty materials (local and/or recycled)

n Manage documentation of additional materials

n Ensure adherence to special shipping and packag-

ing requirements

n Recycle on-site

n Fulfill special general conditions requirements

n Meet unique temporary and permanent power

requirements

n Interact with third-party commissioning and ver-

ification consultants

4The Role of the ElectricalContractor in Green BuildingProjects

19


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 contrac-

tors can perform onsite to enhance their environmen-

tally conscious behavior.

Opportunities for ElectricalContractors in Emerging GreenBuilding Markets

Many opportunities exist for ECs that wish to

expand their services and become leaders on green build-

ing projects. Examples of additional services that some

ECs have begun to offer green building owners include:

20

Procurement

____ Use contractors experienced in green building

____ Give emphasis to design-build

____ Use subs with in-house fabrication capability

____ Require early installation of permanent electrical systems

____ Use energy efficient and switchable lamps and for temporary lighting

____ 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

Material Selection

____ 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

Energy

____ 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

____ Use UL and IC rated fixtures for recessed lighting

____ Use Energy Star rated equipment

Waste Prevention

____ Reduce packaging

____ Reuse undamaged demolished items, e.g., electrical boxes

____ Return wire spools to manufacturer

____ Protect equipment from dust and dirt

Recycling

____ 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

____ Use sealants that enable easy disassembly

____ Salvage copper wire

____ Consider modular wiring systems

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

____ Recognize electrocution hazards, such as overhead and underground wiring

____ Use GFCIs on all temporary receptacle circuits

Indoor Environment Quality

____ Provide back-up power

____ Seal openings to reduce drafting and energy loss

____ Provide integrated commissioning for all control, mechanicaland electrical systems

Table 4: LEED® Jobsite Checklist of Green Practices for Electrical Contractors

THE ROLE OF THE ELECTRICAL CONTRACTOR IN GREEN BUILDING PROJECTS

n Energy-efficient equipment analysis and selection

n Assistance with energy modeling calculations

n Value-added approaches to value engineering

n Energy use analysis – redesign/refit building light-

ing systems

n Cogeneration payback analysis

n Energy rebate/incentives analysis

n Building energy and lighting system commissioning

n Helping owners obtain LEED® Innovation credits

Featured Market Opportunity:Renewable and Distributed EnergySystems

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 sys-

tems (CHP), building integrated photovoltaic (BIPV)

systems, and wind turbines. Electrical contractors

must meet additional design, procurement, and con-

struction requirements for each system. Example:

Photovoltaic system construction activities:

1. Install the PV system in coordination with

roof/glazing contractors

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 bat-

teries)

5. Install protective devices

6. Install metering devices for net metering utili-

ty-connection with the PV system

An excellent reference on technology of photo-

voltaic systems has been developed by Glavinich and

Yong for ELECTRI International.

Additional ReferencesCullen, S. “Whole Building Design Guide.”

EnerModal Engineering, “Ten Steps to a Sustainable

Building.”

Field Guide for Sustainable Construction, http://reno-vation.pentagon.mil/Field%20Guide%20for%20Sustainable%20Con.pdf

Green Building Solutions, http://www.greenbuildingso-lutions.org/s_greenbuilding/index.asp

Glavinich, T. and Yong, B., “Emerging Photovoltaic

Market, Task 2: Defining Emerging PV Market.”

Glavinich, T. and Yong, B., “Emerging Photovoltaic

Markets: Task 3: Investigating PV Technology.”

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/

PSU Partnership for Achieving Construction

Excellence and Pentagon Renovation and

Construction Program Office, “Electrical Contractors

Field Guide.”

Public Technology, Inc. and USGBC, “ Sustainable

Building Technology Manual: Green Building Design,

Construction and Operation.”

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.

Rosenberg, H. and Merson, A., “LEED® and the

General Contractor.”

21

Characteristics of Successful GreenBuilding Projects

As completed LEED® project accumulate, the con-

struction 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:

n The idea of a green building was introduced at

the inception of the project.

n The core team is experienced in green buildings,

rather than hiring a “green” consultant.

n Integrated forms of contracts are used so that

general, mechanical, and electrical contractors are

involved during design.

n Design-build or design-assist contracts are held

by mechanical and electrical contractors.

n More efficient systems and streamlined mechani-

cal distribution systems are used.

n Systems tend to be “right-sized” with less redun-

dancy 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:

n Indecision on the part of inexperienced owners

and design teams on complex systems can result

in late and costly changes.

n Many LEED® points, occupancy health, and ener-

gy 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.

n ECs without strong in-house engineering capabil-

ities aligned with project size and scope will be

challenged to help meet LEED® requirements.

n The procurement of complex lighting systems,

dimmable ballasts, and lamps requires extra effort

and if not specified early, can result in schedule

delays.

n If not designed properly, complex lighting sys-

tems and controls can be labor intensive to com-

mission. Increasingly, these systems do not work

properly, requiring extensive call backs on green

building projects.

n Consulting engineers tend to be first-cost orient-

ed, 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.

5Lessons Learned by ElectricalContractors on GreenBuilding Projects

23


Forms of Risk on Green BuildingProjects

Significant sources of risk exist on green building

projects. The following forms of risk can threaten

profitability of green building projects for electrical

contractors.

n Electrical contractors are provided with incom-

plete designs for lighting and electrical systems,

which requires additional work to complete

design and design coordination.

n Electrical contractors may underestimate the time

required for design assistance and clarifications

and RFIs for new and complex energy and light-

ing systems.

n 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 BuildingAwareness for ElectricalContractors

In summary, an electrical contractor’s awareness of

green building and LEED® is expected to have the fol-

lowing advantages:

n Potential repeat business and competitive advan-

tage on future projects.

n Potential for higher profit on higher-end systems

and fixtures.

n Potential for reduced risk by increased involve-

ment during design.

n Less damage, more productive, and safer job sites

that are cleaner and better organized.

n Closing out jobs faster because of increased com-

missioning.

n The potential for increased goodwill generated by

using socially and environmentally responsible

practices.

Concluding RecommendationsThe 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 high-

profile 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 electri-

cal contractors. Philips provided the following advice

for contractors interested in a progressive and pro-

active stance in the green building market:

n Get educated about green and sustainable market

drivers.

n Develop a comprehensive understanding of sus-

tainable building design processes.

n Seek to add value to project teams through appro-

priate and timely assistance with green goals.

n Become indispensable to green building teams

through technical expertise.

n Develop repeat business among owners that value

green design.

n Develop expertise to be a leader in the emerging

market of green buildings.

Additional ReferencesLierly, R. and Kivela, K., “Integrating Sustainable

Design and Construction Concept into FY00

Homestead AFB Project,” ADAL Fire Station.”

24

ELECTRI International3 Bethesda Metro Center

Suite 1100Bethesda, Maryland 20814-5372

Tel: 301-215-4538Fax: 301-215-4536

Web: www.electri.org

© 2007 ELECTRI International—The Foundation for

Electrical Construction, Inc.All rights reserved.

Index No. F2708

emerging green markets

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