Re: SB 556 USGBC NORTH CAROLINA P.O. BOX 31384 CHARLOTTE, NC 28231-1384 www.usgbcnc.org EXECUTIVE DIRECTOR Emily Scofield, LEED® AP ID+C USGBC North Carolina 704-608-1999 [email protected] OFFICERS CHAIR Bae-W on Koh, LEED® AP BD+C Innovative Design, Inc. VICE-CHAIR Shaun Ferguson Morgan Stanley W ealth Management SECRETARY Misty Beller, LEED® AP ID+C Office Environments TREASURER Shane Nault, LEED® AP BD+C Building EnergetiCx, PLLC DIRECTORS Tony Santoro, LEED® AP Piedmont Natural Gas Jeff Beam, LEED® AP BD+C Balfour Beatty Construction Jim Fields Superior Mechanical Services, Inc. Nick Lauretta, LEED® AP McKim & Creed Towanda Long Charlotte Pipe & Foundry Dr. Rosa Otero Salem College Stephen Thomas, LEED® AP URS Corporation Donovan Everett D.A. Everett Construction Group Aimee Adams, LEED® AP BD+C Lincoln Harris April 9, 2015 Dear Senator _____: Thank you for your service to North Carolina. I am writing to share concerns about prohibitive language in SB 556, Capital Improvement Reform. Prohibitive language is written in section (c)(9) “The agency agrees not to spend any of the funds allocated to it from the Capital Improvement Planning Fund to seek LEED Certification from the U.S. Green Building Council" This bill sends a negative message about Leadership in Energy & Environmental Design (LEED), a third party rating system that has been used in 661 commercial projects in our state. The U.S. Green Building Council – North Carolina Chapter (USGBC NC) is against any bill restricting resource efficient construction. In 2014, North Carolina was 7th in the nation for LEED building activity. During the Great Recession years of 2007-2009, LEED certifications in our state more than doubled year over year speaking to the affordability and economic viability of the rating system. LEED is a framework for the design, construction and operation of buildings that maximizes efficiency, reduces waste, and lowers impacts on our health and our environment. Many iconic companies in North Carolina, such as Columbia Forest Products, Roanoke Cement, Nucor, Ingersoll Rand, BASF, Wells Fargo, Bank of America, Google, Duke Energy, Piedmont Natural Gas and CocaCola, rely on LEED certification. Federal, state and local governments have followed in using LEED including 201 projects on military bases. Cost Effective The 250,000 square foot Green Square Complex encompasses two state buildings - the Nature Research Center (NRC) and the Environment and Natural Resources (ENR) Building. Both buildings achieved LEED Platinum and incorporate smart features serving as teaching tools for future state construction projects. The green roof and water channel system reclaim about 1 million gallons of water/year that is used for toilets and cooling tower. The collection and use of rainwater conserves city water, reduces runoff and reduces water expenses. USGBC NORTH CAROLINA P.O. BOX 31384 CHARLOTTE, NC 28231-1384 www.usgbcnc.org EXECUTIVE DIRECTOR Emily Scofield, LEED® AP ID+C USGBC North Carolina 704-608-1999 [email protected] OFFICERS CHAIR Bae-W on Koh, LEED® AP BD+C Innovative Design, Inc. VICE-CHAIR Shaun Ferguson Morgan Stanley W ealth Management SECRETARY Misty Beller, LEED® AP ID+C Office Environments TREASURER Shane Nault, LEED® AP BD+C Building EnergetiCx, PLLC DIRECTORS Tony Santoro, LEED® AP Piedmont Natural Gas Jeff Beam, LEED® AP BD+C Balfour Beatty Construction Jim Fields Superior Mechanical Services, Inc. Nick Lauretta, LEED® AP McKim & Creed Towanda Long Charlotte Pipe & Foundry Dr. Rosa Otero Salem College Stephen Thomas, LEED® AP URS Corporation Donovan Everett D.A. Everett Construction Group Aimee Adams, LEED® AP BD+C Lincoln Harris NCDENR has documented the energy savings at its Green Square building compared to what the building would have used if designed and built to meet the energy code that was in effect at the time of design (the baseline). From Oct 2012 to Sept 2013 the building was shown to use 15% less energy and saved ~$107k in annual energy costs compared to the baseline. From fiscal year July 2013 to June 2014, the building data showed it used 20% less energy and reduced annual energy cost by about ~$106k per year. Lower Operating Costs LEED-certified buildings have been proven to use 25% less energy and a 19% reduction in aggregate operational costs in comparison to non-certified buildings.41 24 LEED certified schools in North Carolina provide a healthy learning environment and can save an average of $100,000/year on operational expenses. Increased Productivity and Worker/Student Satisfaction A Museum of Natural Sciences employee often chooses to work in the LEED part of the museum because it's a provides a more comfortable temperature. Occupancy comfort is a benefit to LEED certified spaces. Employees working in the LEED-certified branches of a financial institution were found to be "more productive and engaged in their work." 17 Using LEED-certified buildings increases revenue generated by bank branches even when they offer the same products and services.18 Other research has found that office workers with the best possible view, as opposed to no view, performed 10% to 25% better on tests of mental function and memory recall.20 LEED-certified buildings are also demonstrating increased recruitment and retention rates and increased productivity benefits for employers and schools. 2.5 million employees are currently experiencing better indoor environmental quality in LEED buildings in the nation. This group of employees is expected to exceed 21 million by 2030, resulting in an economic value of $90 billion from increased productivity.21 Better Health Standards for Commercial Building Tenants People in the U.S. spend about 90% of their time indoors23. EPA studies indicate indoor levels of pollutants may be up to ten times higher than outdoor levels24. LEED-certified buildings are designed to have healthier, cleaner indoor environmental quality, which means health benefits for occupants.25 Additional scholarly research into the health affects of USGBC NORTH CAROLINA P.O. BOX 31384 CHARLOTTE, NC 28231-1384 www.usgbcnc.org EXECUTIVE DIRECTOR Emily Scofield, LEED® AP ID+C USGBC North Carolina 704-608-1999 [email protected] ergonomic design have established a definitive link between improved lighting design and a 27% reduction in the incidence of headaches, which accounts for 0.7% of the overall cost of employee health insurance.26 This equals approximately $70 per employee annually.27 LEED’s holistic approach to creating a healthy built environment is designed to help companies maximize these savings through substantially improving the quality of life for their labor forces. The USGBC NC asks that you remove section (c)(9) from SB 556 since the ongoing positive human, economic and environmental benefits of LEED certification outweigh the first costs of the project. Thank you for your consideration of the important facts and research presented herein. OFFICERS CHAIR Bae-W on Koh, LEED® AP BD+C Innovative Design, Inc. VICE-CHAIR Shaun Ferguson Morgan Stanley W ealth Management SECRETARY Misty Beller, LEED® AP ID+C Office Environments Sincerely, Emily Scofield Executive Director USGBC NC Bae-Won Koh Board Chair USGBC NC TREASURER Shane Nault, LEED® AP BD+C Building EnergetiCx, PLLC DIRECTORS Tony Santoro, LEED® AP Piedmont Natural Gas Jeff Beam, LEED® AP BD+C Balfour Beatty Construction Jim Fields Superior Mechanical Services, Inc. Nick Lauretta, LEED® AP McKim & Creed Towanda Long Charlotte Pipe & Foundry Dr. Rosa Otero Salem College Stephen Thomas, LEED® AP URS Corporation Donovan Everett D.A. Everett Construction Group Aimee Adams, LEED® AP BD+C Lincoln Harris References: 41GSA, "Green building performance A Post occupancy evaluation of 22 GSA buildings," August 2011. 17Conlon, E. and Glavas, A. (2012). The Relationship Between Corporate Sustainability and Firm Financial Performance. Accessed March 27, 2012 18Conlon, E. and Glavas, A. (2012). The Relationship Between Corporate Sustainability and Firm Financial Performance. Accessed March 27, 2012 20Heschong Mahone Group, Inc. (2003). Windows and Offices: A Study of Office Worker Performance and the Indoor Environment –CEC Pier 2003. Accessed Nov. 22, 2011 21Watson, Rob. Green Building and Market Impact Report – 2011. Accessed Nov. 15, 2011 23Environmental Protection Agency (1987). The Total Exposure Assessment Methodology (TEAM) Study. 24Environmental Protection Agency (2008). An Introduction to Indoor Air Quality. 25U.S. Green Building Council (2013). Health is a Human Right. Green Building Can Help. Accessed Jan. 27 2015 27Business Insurance (2011). Group health care costs rise 6.1%. Accessed Nov. 30, 2011 USGBC NORTH CAROLINA P.O. BOX 31384 CHARLOTTE, NC 28231-1384 www.usgbcnc.org EXECUTIVE DIRECTOR Emily Scofield, LEED® AP ID+C USGBC North Carolina 704-608-1999 [email protected] OFFICERS CHAIR Bae-W on Koh, LEED® AP BD+C Innovative Design, Inc. VICE-CHAIR Shaun Ferguson Morgan Stanley W ealth Management SECRETARY Misty Beller, LEED® AP ID+C Office Environments TREASURER Shane Nault, LEED® AP BD+C Building EnergetiCx, PLLC DIRECTORS Tony Santoro, LEED® AP Piedmont Natural Gas Jeff Beam, LEED® AP BD+C Balfour Beatty Construction Jim Fields Superior Mechanical Services, Inc. Nick Lauretta, LEED® AP McKim & Creed Towanda Long Charlotte Pipe & Foundry Dr. Rosa Otero Salem College Stephen Thomas, LEED® AP URS Corporation Donovan Everett D.A. Everett Construction Group Aimee Adams, LEED® AP BD+C Lincoln Harris
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