New Tool on Tap For ‘Green Developers’

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The New York Sun

Residential developers may soon have a new option for achieving certification that their buildings are environmentally friendly. In addition to boosting energy savings across the boroughs, the change could lead to price increases for so-called green buildings of as much as 15%, experts said.

For years, most residential buildings in New York City have been unable to achieve the Environmental Protection Agency’s Energy Star certificate because no tests had been agreed upon to measure residential buildings of more than three stories. Now, the New York State Energy Research and Development Authority and the EPA are finalizing a set of standards to certify high-rises.

“The way energy is used in a mid- or high-rise building is very different than lower buildings,” a spokesman for the EPA, Jonathan Passe, said. The certification for residential towers could be available to developers as early as next year, officials said.

The changes in certification come as the state’s Energy Research and Development Authority has recorded a 263% jump in the past three years of environmentally friendly new construction.

“There were a number of buildings built in the 1950s, ’60s, and ’70s, when energy costs weren’t a significant part of operations,” the chief executive of the state’s Energy Research and Development Authority, Paul Tonko, said. “Today, energy costs are significant.”

With the Energy Star certification difficult to come by, many buildings have been looking for certification from the U.S. Green Building Council, which offers a more stringent and comprehensive standard called Leadership in Energy and Environmental Design. Achieving the LEED certification, however, can cost as much as double for developers as an Energy Star certification.

“Energy Star is a heck of a lot easier to obtain than LEED,” the director of the Urban Energy Project at Columbia University’s Center for Energy, Marine Transportation and Public Policy, Stephen Hammer, said. Energy Star “might be a nice foot in the door for developers pursuing some recognition.”

Whereas LEED takes into account building materials, indoor air quality, the sustainability of the site, energy and water efficiency, and the design process, Energy Star focuses solely on energy efficiency. This makes it more affordable for developers looking to achieve a degree of sustainability. To achieve Energy Star certification, a building must be among the top 25% of energy efficient buildings nationwide. As of last year, there were 495 residential buildings with fewer than three stories that have the Energy Star certification in the New York metropolitan area, according to the EPA. In the first half of this year, 54 certifications were awarded.

An Energy Star plaque can add as much as 15% additional value to a development, a general contractor who has completed two certified projects in Brooklyn, Andrew Giancola, said. While costs do rise, the ability to market buildings as energy efficient and environmentally friendly is a major boon, he said.

“It differentiates us from others in the market,” he said, noting that consumers are increasingly savvy about environmental impact, especially in new developments. “We receive marketing value from the label.”

To obtain LEED certification, there is a premium on construction costs as well as third-party consultant fees that can cost as much as $100,000, a Greenwich Village developer, Adam Gordon, said. “The standard needs to be more cost effective for small buildings,” Mr. Gordon said.

Mr. Giancola said meeting Energy Star qualifications for a new development in Brooklyn costs about 10% over constructions costs, whereas LEED would cost at least 20%.


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