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National Green
           Building Prog ram
           Over view
          Presenter: John Kremke II, CGB, CGP

          Porter County Builders Association
          Chairman, Green Building Alliance
          Director of Construction and Development Operations,
          Accent Homes, Inc.
          Certified Green Professional (CGP)

          April 8, 2009
                                                                 1
National Green Building Certification
Presentation Topics

      What is Green Building? What it is not.
      NAHB National Green Building Program
       Overview
      PCBA Green Build Events and Educational
       Opportunities




                                                 2
National Green Building Certification
Defining Green

      Green Building Standards
            Green Certification goes beyond Energy –
             7 green principles
            Includes all market segments (affordable,
             moderate priced, move-up)
            Guidelines/Standards are ENERGY STAR
             compatible
            Certification is still available (for a short
             time) to requirements of NAHB Model
             Green Home Building Guidelines
             (Guidelines)
            Guidelines defined green in 2005
            Eventually Guidelines will be phased out
             and will not be updated. Certification to
             Standards will be used solely.


                                                             3
National Green Building Certification
A Needed Agreement on a
Single Definition of Green,
at last . . .
 The 2 year ANSI process:
  42 member consensus committee
  Strict rules for open and wide
   participation
  ANSI approval as a National Consensus
   Standard



                                           4
  National Green Building Certification
Defining Green

   National Green Building Standard
         Developed by ANSI consensus process;
          approved early 2009 and will be periodically
          reviewed & updated
              Sponsored by NAHB & International Code Council
               (ICC)
              42 committee members included:
                  36% Producers
                  33% Users
                  31% General
              7 Task Groups
              Updated and improved derivative of the NAHB
               Model Green Building Guidelines
              Completed 3 Ballot & Public Comment Cycles
               (addressed over 2,000 comments)
              Copies now for sale from www.BuilderBooks.com

         Updated and more stringent than Guidelines
                                                                5
National Green Building Certification
Why National Green Building
Program?

  One recognizable standard
  Above code requirements
  Voluntary
  Ability to respond to market demands
  Perfect for builders already building above
   minimums
  Compatible with Energy Star



                                                 6
 National Green Building Certification
National Green Building
Program


       Consumer, Community &
           Industry Benefits




                                        7
National Green Building Certification
Consumer Benefits
    Higher performing than non-certified homes,
     typically built “beyond code”
    Consumer confidence that home will perform
     as claimed; independent 3rd-party verification
    Required Homeowner education helps them
     understand their role in their new home
    Certified home is more than simply energy
     efficient but green and sustainable – 7 green
     principles
    Bragging rights that their home is green
     certified to the best program available

                                                 8
National Green Building Certification
Community Benefits

      Incentives for on-site recycling and re-use of
       resources – reduced waste
      Construction of verified green and “beyond
       code” buildings – less life cycle maintenance
      Incentives for low impact development
       techniques – reduced development impact
      Reduced infrastructure maintenance
      Incentives for public transportation and
       community recycling
      Resource and Water efficiency


                                                        9
National Green Building Certification
Industry Benefits &
Marketing Support
     NAHB-endorsed national program based on
      national consensus standard
     Confidence in credibility of third-party verification;
      overcome consumer cynicism over definition of
      “green”
     Confidence - Provides standards to avoid
      “Greenwashing”
     Recognition as early adopter for inevitable future
      of our industry
     Less overall construction costs to implement
     Levels the playing field, but provides flexibility for
      market differentiation

                                                               10
National Green Building Certification
 Marketing Support from NAHB
          National Brand Recognition
               Use of NAHB & NAHB Research Center
                logos/marks in promotional materials
          NAHB developing National Green Building
           Program logos & usage agreements for
           affiliated HBAs, Qualified Projects, and
           Verifiers



          NAHB developing collateral on green
           building and green certification for HBAs,
           Builders                                     11
National Green Building Certification
Marketing Support
NAHB Research Center

 Certificate for all certified homes
 Optional plaques for certified
  homes
 Free option to show home on
  national website
 NAHB maintains record of all
  certified homes
                                         12
 National Green Building Certification
 Toll-free hotline – support for builders, buyers,
         verifiers
        Other collateral – downloadable brochures,
         press release templates, fact sheets, etc.; can
         be customized by each participating builder
        Use of NAHB Research Center corporate logo
         and CERTIFIED mark




                                                        13
National Green Building Certification
Green Home Certificate




                                        14
National Green Building Certification
Optional Certification Plaque




         Custom made and unique to each certified building


                                                             15
 National Green Building Certification
 Optional home listing and photo listed on
  national website (high-traffic site)

         Sample Certified Home Display
           on National Website

    Certification Level: Gold
    Location: Bloomington, IN
    Builder: Joe Covington Building
    Co.
    Website: www.builderswebsite.com
    Description: [Builder to supply text
    to describe home.]




                                              16
  National Green Building Certification
 The new Standard has an expanded scope
         Land Development
         Single Family
         Multi-family
         Additions
         Renovations
  Available Levels of Green Certification
       Bronze, Silver, Gold, and Emerald Levels
       Minimum score per section required for each
        level
       Need additional points across all sections
       The lowest section score determines the
        home’s overall score


                                                      17
National Green Building Certification
National Green Building Standard
Points Required




                                        18
National Green Building Certification
Lot Design, Preparation and
Development
       Minimize environmental impact – Infill?
       Mass transportation and pedestrian opportunities
       Project team and established goals
       Minimize impacts to slope disturbances and natural resources
       Minimize soil disturbance and erosion
       Maintain natural drainage features and patterns
       Landscaping to limit water and energy usage
       Increased densities
       Innovative practices – shared drives, pervious pavement




                                                                   19
 National Green Building Certification
Resource Efficiency

       Conditioned floor area square footage limits
       Advanced and engineered structural and framing systems
       Building dimensions designed to reduce material waste
       Detailed framing plans
       Precut and prefabricated components
       Stacked stories
       Pre-finished materials (trim, doors, etc.)
       Adequate roof overhangs – durability
       Proper foundation drainage and finished grade
       Proper flashing and sealing on plans
       Recycled construction waste


                                                                 20
 National Green Building Certification
Energy Efficiency

       Heating and cooling systems sized to Manual J (mandatory)
       HVAC ducts sealed
       Seal/flash exterior walls, windows, doors, penetrations
       Proper attic ventilation and seal attic entrance
       Sealed recessed can light fixtures (where used)
       Third party verification for building envelope air infiltration
       Additional practices include LED or CFL lighting, using Energy
        Star rated light fixtures and appliances, occupancy sensors on
        indoor lights, use of renewable energy heating and cooling




                                                                     21
 National Green Building Certification
Water Efficiency

  Reduce indoor hot water usage -on demand heater, less that 40
   feet hot water pipe runs, engineered systems
  Water conserving appliances
  Water efficient shower heads, faucets and toilets
  Irrigation system installed that is low volume, zoned, subsurface
   and equipped with rain and soil moisture sensors
  Rainwater collection and distribution
  Water quality filter
  Innovative practices – graywater system for irrigation (where
   permitted by local code)




                                                                   22
  National Green Building Certification
Indoor Environmental Quality

      Air handling equipment not in garage unless in a sealed room
      Power or direct vent heating and water heating exhaust in conditioned
       spaces
      Sealed fireplaces
      Garage/House door sealed and gasketed
      No carpeting near toilets and bathing fixtures
      Low VOC wall coatings
      Zero VOC site applied interior finishing products
      CO2 alarms
      Proper kitchen, bath and dryer venting to outdoors
      Bath or Laundry exhaust fan on timer
      HVAC registers protected/covered during construction
      Moisture control in crawl spaces, baths and tile backing
      Innovative Practices - Humidity monitoring system



                                                                               23
     National Green Building Certification
Operation, Maintenance and
Building Owner Education
      Owner’s manual
      Owner orientation and training
      Multi-family operation and maintenance manual




                                                       24
     National Green Building Certification
Green Building Myths

                                   and

               Green Building
                  Realities



                                         25
National Green Building Certification
Green Building Myth #1


   Consumers only care about the
   bottom line; they don’t care about
   green




                                         26
 National Green Building Certification
Green Building Reality
#1

   Homebuyers do care about green
   and are willing to pay for it!




                                         27
 National Green Building Certification
28
National Green Building Certification
Builder’s View
  Builder in Delaware states that 70% of his current sales
   are generated as a result of potentially seeing that sign
   and touring that home

  Builder in Texas with 25 year track record of building
   green energy efficient homes says 2008 was a good,
   2009 will be better




                                                            29
 National Green Building Certification
From The Wall Street
Journal
February 4, 2009

             Journalist Wendy Bounds asks:
             “Is it worth the dough to get the props?
                   One-third of home buyers surveyed said
                    they were willing to pay a $20,000 premium
                    for a green home.
                   A key factor: the promise of reduced
                    operational costs.”*

                  *According to a 2008 McGraw-Hill Construction report



                                                                         30
   National Green Building Certification
 20K per house is a lot of green
 Most customers will never have to come
  up with that much
 Many builders are closer to Bronze or
  Silver than they realize




                                           31
National Green Building Certification
Green Building Myth #2

   Green Building is a fad; it’s not very
   important to homebuyers




                                            32
 National Green Building Certification
Green Building Reality
#2

   There is significant interest and
   inevitable growth in green building
   and green building certification




                                         33
 National Green Building Certification
Market Trends
    McGraw-Hill says market is approaching
     “tipping point” and predicts green building
     may triple from 2008-2013
    Growing consumer demand, dramatic changes
     in last 3 years
       Regulatory mandates - energy
       Development of consensus standard
       High-performance homes becoming
         mainstream
    Moving beyond just energy – evolution to
     consumer desire for total “green” offerings
    Inevitable growth – Environmentally conscious
     buyers (boomers, Gen X and Y)


                                                 34
National Green Building Certification
Green Certification
Programs
            Guidelines/Standards based green
             programs
            35+ sponsored by HBAs across
             the U.S. in 10 years
            Local modifications to reflect
             climate and style
            150,000 certified homes nationally
             thru 2007

                                              35
 National Green Building Certification
Green Building Myth #3


   Building green is too expensive




                                         36
 National Green Building Certification
Green Building Reality
#3

   National Green Building Program is
   affordable




                                         37
 National Green Building Certification
Cost Analysis &
 Comparison
        Generally there are 3 costs associated
         with building & certifying to National Green
         Building Certification
             Construction Costs
             Verification/Testing Costs
             Certification Fees




                                                   38
National Green Building Certification
1. Verification Costs
        Determined locally between Builder and
         Verifier
        Market rate based on supply and demand
             More than 350 Verifiers with National coverage
             100’s more in the process of becoming accredited
        Inspections typically taking 90-120 minutes
         each (rough & final)
        Many verifiers also provide other
         inspection/testing services and are already on
         site
             Testing fees set by the market

                                                                 39
National Green Building Certification
2. Certification Fees
        Single-Family Homes
             $200 per home for NAHB members
             $500 for non-members of NAHB
        Multifamily buildings
             $200 per building ($500 for non-NAHB members)
              plus per-unit fee ($20)
        Land Development
             Design Approval ($2,500)
             Certified Development ($2,500)




                                                              40
National Green Building Certification
3. Combined Costs as Percentage
  of House Cost
                                                                           Emerald/
   Rating System     Bronze/Certified        Silver          Gold          Platinum

        GBG             1.0 – 1.4%         2.3 – 3.4%      4.7 – 6.4%         NA



       NGBS             1.1 – 1.7%         2.8 – 3.1%      6.9 – 7.6%     16.3 – 16.9%



      LEED-H            3.6 – 5.6%         5.1 – 7.4%    11.2 –13.5%      17.3 – 22.9%




    Note: All 3 of these programs are in their infancy, so costs are likely to change as
    the programs develop.

    Base House is minimum code. Dallas production house cost of $172,700 is
    represented.
                                                                                           41
National Green Building Certification
Green Building Myth #4


   It is difficult and complicated to build
   green




                                          42
 National Green Building Certification
Green Building Reality
#4

   Many builders find green building to
   be “very easy” or somewhat easy”




                                          43
 National Green Building Certification
Industry Trends in
    2 Green
       annual Professional Builder magazine survey
      nd

    findings (2008):

    Respondents found the program “Very or Somewhat
    easy to use”
              Energy Star Program      70%
              NAHB Green               44%
              LEED-H                   23%

    Respondents found the program “Very or Somewhat
    reliable”
            Energy Star Program        73%
            NAHB Green                 50%
            LEED-H                     48%


                                                      44
National Green Building Certification
NAHB & NAHB
Research Center




                                        45
National Green Building Certification
Roles and
Responsibilities
of the Major Players
    NAHB
    NAHB Research Center
    Local HBAs – Porter County Builder’s
     Association




                                            46
 National Green Building Certification
 Promoting green = major priority for NAHB
         Co-sponsored ANSI standard development
          with ICC
         Funded www.nahbgreen.org
              2,753 registered users
                  Growing at 17%/month
              10,000 user sessions in July
         Green is key topic for NAHB meetings:
                IBS
                NAHB board meetings
                Nation’s Building News
                Promotional materials created for HBAs
         Active nationally with advocacy on green
   NAHB National Green Building Program

                                                          47
National Green Building Certification
 NAHB Research Center only NAHB-
    authorized certifying body for National
    Program Certification
   Research Center role:
        Develop National Green Building Certification
         scoring tool and inspection criteria
        Accredit and oversee verifiers;
         list accredited verifiers on
         www.nahbgreen.org
        Issue project
         certification

                                                     48
National Green Building Certification
 Process Overview – Green Buildings
         100% Verification
         Verification by an NAHB Research Center
          accredited verifier
         Verification inspections required at rough and
          final
         Verifiers may provide design consulting
          assistance to builder but this is not required
         Multifamily buildings will be certified by
          building, not by unit
         Builder agreement required (once for all
          houses)


                                                      49
National Green Building Certification
HBAs Affiliated
  with the National
  Programnational network of
   An effective
    affiliated HBAs
   Utilizing NAHB Research Center’s
    National Green Building Certification
   Assisting in local efforts in
    education, outreach and green
    marketing in their markets and to
    their members and industry partners


                                            50
National Green Building Certification
51
National Green Building Certification
Porter County Builders
Association
 Green Building Alliance
 Living Green Expo – Ivy Tech, Valparaiso, November 6-8
    Vendors
    Education opportunities
    Community Education
 Green Parade September, 2009
    Muddy Boots Tours
    Other Education
 Green Certified Development – First in nation
 CGP Designation (Certified Green Professional)
    Valparaiso, May 19-21
    Indianapolis, April 21-23, September 14-16 and October 25-27
 Education, Education, Education
    Real Estate agents, appraisers, lenders, builders, community

     www.pcbaonline.com
                                                                    52
   National Green Building Certification
APPENDIX
          Some of the
          Technical Details



                                        53
National Green Building Certification
Additional Program
     Enhancements
           “Green Approved” program
                Building Systems; Modular
                 Products
                Pre-approved points for green
                 products




                                                 54
National Green Building Certification
Defining Green, cont.

  Points Required for Homes
  Certified Under the
  Guidelines
                  Points Required for the 3 different levels of Green Building
   Category                                                        Bronze Silver   Gold
   Lot Design, Preparation, and Development                        8         10    12
   Resource Efficiency                                             44        60    77
   Energy Efficiency                                               37        62    100
   Water Efficiency                                                6         13    19
   Indoor Environmental Quality                                    32        54    72
   Operation, Maintenance, and Homeowner Education                 7         7     9
   Global Impact                                                   3         5     6
   Add’l points from secions of your choice                        100       100   100
   Totals                                                          237       311   395




                                                                                          55
National Green Building Certification
Defining Green
   National Green Building Program –
    History

         1995: Green Building gained more
          mainstream industry interest
         2005: NAHB Research Center
          developed NAHB Model Green Home
          Building Guidelines per NAHB’s
          request
         1995-2008: 50+ local green building
          programs developed and
          implemented, many were Guidelines-
          based
                                                56
National Green Building Certification
Defining Green,                          cont.

        2007: NAHB and ICC announce partnership to
         develop consensus-based National Green
         Building Standard
        2008: National Green Building Program and
         Certification (based on Guidelines) launched
         at 2008 International Builders’ Show
        2009: ANSI National Green Building Standard
         Approved expanding the national certification
         to include developments, multi-family,
         renovations and additions


                                                     57
 National Green Building Certification
NAHB Research
  Center Overview
     Established in 1964
     Wholly-owned, for-profit subsidiary
      of NAHB
     Mission
            To improve the quality, affordability,
             durability, and environmental performance
             of housing
     Methodology
            Promote innovation in home building
             products/systems, technology, and
             construction processes
                                                     58
National Green Building Certification
 Capabilities
        Market Research
             Quantitative
             Qualitative
        Lab Testing & Certification
             Third-party accredited
             Product Certifications
             Quality Management Certifications
        Field Evaluations & Demonstrations
        Code Compliance
        Information Dissemination
             ToolBase


                                                  59
National Green Building Certification
 Our Team - 85 employees with expertise
    in all aspects of home building science &
    research
           Mechanical, Structural, Electrical Engineers
           Land Planners
           Wood Scientists
           Economists
           Architects
           Builders/Remodelers
           Lab Technicians
           Market Research Experts


                                                           60
National Green Building Certification
 Laboratory Credentials = business culture of
   rigor and credibility
       IAS (International Accreditation Service)
            Test Lab (ISO 17025)
            Inspection Agency (ISO 17020)
       NIST – NVLAP (National Voluntary Laboratory
        Accreditation Program)
            Test Lab (ISO 17025)
       U.S. Department of Housing & Urban
        Development
            Use of Materials Bulletin Administrator
       IAPMO (International Association of Plumbing
        and Mechanical Officials)
            Recognized Test Lab
       City of Los Angeles, CA
            Testing Agency License
       Others                                         61
National Green Building Certification

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NAHB Green Building

  • 1. National Green Building Prog ram Over view Presenter: John Kremke II, CGB, CGP Porter County Builders Association Chairman, Green Building Alliance Director of Construction and Development Operations, Accent Homes, Inc. Certified Green Professional (CGP) April 8, 2009 1 National Green Building Certification
  • 2. Presentation Topics  What is Green Building? What it is not.  NAHB National Green Building Program Overview  PCBA Green Build Events and Educational Opportunities 2 National Green Building Certification
  • 3. Defining Green  Green Building Standards  Green Certification goes beyond Energy – 7 green principles  Includes all market segments (affordable, moderate priced, move-up)  Guidelines/Standards are ENERGY STAR compatible  Certification is still available (for a short time) to requirements of NAHB Model Green Home Building Guidelines (Guidelines)  Guidelines defined green in 2005  Eventually Guidelines will be phased out and will not be updated. Certification to Standards will be used solely. 3 National Green Building Certification
  • 4. A Needed Agreement on a Single Definition of Green, at last . . . The 2 year ANSI process:  42 member consensus committee  Strict rules for open and wide participation  ANSI approval as a National Consensus Standard 4 National Green Building Certification
  • 5. Defining Green  National Green Building Standard  Developed by ANSI consensus process; approved early 2009 and will be periodically reviewed & updated  Sponsored by NAHB & International Code Council (ICC)  42 committee members included:  36% Producers  33% Users  31% General  7 Task Groups  Updated and improved derivative of the NAHB Model Green Building Guidelines  Completed 3 Ballot & Public Comment Cycles (addressed over 2,000 comments)  Copies now for sale from www.BuilderBooks.com  Updated and more stringent than Guidelines 5 National Green Building Certification
  • 6. Why National Green Building Program?  One recognizable standard  Above code requirements  Voluntary  Ability to respond to market demands  Perfect for builders already building above minimums  Compatible with Energy Star 6 National Green Building Certification
  • 7. National Green Building Program Consumer, Community & Industry Benefits 7 National Green Building Certification
  • 8. Consumer Benefits  Higher performing than non-certified homes, typically built “beyond code”  Consumer confidence that home will perform as claimed; independent 3rd-party verification  Required Homeowner education helps them understand their role in their new home  Certified home is more than simply energy efficient but green and sustainable – 7 green principles  Bragging rights that their home is green certified to the best program available 8 National Green Building Certification
  • 9. Community Benefits  Incentives for on-site recycling and re-use of resources – reduced waste  Construction of verified green and “beyond code” buildings – less life cycle maintenance  Incentives for low impact development techniques – reduced development impact  Reduced infrastructure maintenance  Incentives for public transportation and community recycling  Resource and Water efficiency 9 National Green Building Certification
  • 10. Industry Benefits & Marketing Support  NAHB-endorsed national program based on national consensus standard  Confidence in credibility of third-party verification; overcome consumer cynicism over definition of “green”  Confidence - Provides standards to avoid “Greenwashing”  Recognition as early adopter for inevitable future of our industry  Less overall construction costs to implement  Levels the playing field, but provides flexibility for market differentiation 10 National Green Building Certification
  • 11.  Marketing Support from NAHB  National Brand Recognition  Use of NAHB & NAHB Research Center logos/marks in promotional materials  NAHB developing National Green Building Program logos & usage agreements for affiliated HBAs, Qualified Projects, and Verifiers  NAHB developing collateral on green building and green certification for HBAs, Builders 11 National Green Building Certification
  • 12. Marketing Support NAHB Research Center  Certificate for all certified homes  Optional plaques for certified homes  Free option to show home on national website  NAHB maintains record of all certified homes 12 National Green Building Certification
  • 13.  Toll-free hotline – support for builders, buyers, verifiers  Other collateral – downloadable brochures, press release templates, fact sheets, etc.; can be customized by each participating builder  Use of NAHB Research Center corporate logo and CERTIFIED mark 13 National Green Building Certification
  • 14. Green Home Certificate 14 National Green Building Certification
  • 15. Optional Certification Plaque Custom made and unique to each certified building 15 National Green Building Certification
  • 16.  Optional home listing and photo listed on national website (high-traffic site) Sample Certified Home Display on National Website Certification Level: Gold Location: Bloomington, IN Builder: Joe Covington Building Co. Website: www.builderswebsite.com Description: [Builder to supply text to describe home.] 16 National Green Building Certification
  • 17.  The new Standard has an expanded scope  Land Development  Single Family  Multi-family  Additions  Renovations  Available Levels of Green Certification  Bronze, Silver, Gold, and Emerald Levels  Minimum score per section required for each level  Need additional points across all sections  The lowest section score determines the home’s overall score 17 National Green Building Certification
  • 18. National Green Building Standard Points Required 18 National Green Building Certification
  • 19. Lot Design, Preparation and Development  Minimize environmental impact – Infill?  Mass transportation and pedestrian opportunities  Project team and established goals  Minimize impacts to slope disturbances and natural resources  Minimize soil disturbance and erosion  Maintain natural drainage features and patterns  Landscaping to limit water and energy usage  Increased densities  Innovative practices – shared drives, pervious pavement 19 National Green Building Certification
  • 20. Resource Efficiency  Conditioned floor area square footage limits  Advanced and engineered structural and framing systems  Building dimensions designed to reduce material waste  Detailed framing plans  Precut and prefabricated components  Stacked stories  Pre-finished materials (trim, doors, etc.)  Adequate roof overhangs – durability  Proper foundation drainage and finished grade  Proper flashing and sealing on plans  Recycled construction waste 20 National Green Building Certification
  • 21. Energy Efficiency  Heating and cooling systems sized to Manual J (mandatory)  HVAC ducts sealed  Seal/flash exterior walls, windows, doors, penetrations  Proper attic ventilation and seal attic entrance  Sealed recessed can light fixtures (where used)  Third party verification for building envelope air infiltration  Additional practices include LED or CFL lighting, using Energy Star rated light fixtures and appliances, occupancy sensors on indoor lights, use of renewable energy heating and cooling 21 National Green Building Certification
  • 22. Water Efficiency  Reduce indoor hot water usage -on demand heater, less that 40 feet hot water pipe runs, engineered systems  Water conserving appliances  Water efficient shower heads, faucets and toilets  Irrigation system installed that is low volume, zoned, subsurface and equipped with rain and soil moisture sensors  Rainwater collection and distribution  Water quality filter  Innovative practices – graywater system for irrigation (where permitted by local code) 22 National Green Building Certification
  • 23. Indoor Environmental Quality  Air handling equipment not in garage unless in a sealed room  Power or direct vent heating and water heating exhaust in conditioned spaces  Sealed fireplaces  Garage/House door sealed and gasketed  No carpeting near toilets and bathing fixtures  Low VOC wall coatings  Zero VOC site applied interior finishing products  CO2 alarms  Proper kitchen, bath and dryer venting to outdoors  Bath or Laundry exhaust fan on timer  HVAC registers protected/covered during construction  Moisture control in crawl spaces, baths and tile backing  Innovative Practices - Humidity monitoring system 23 National Green Building Certification
  • 24. Operation, Maintenance and Building Owner Education  Owner’s manual  Owner orientation and training  Multi-family operation and maintenance manual 24 National Green Building Certification
  • 25. Green Building Myths and Green Building Realities 25 National Green Building Certification
  • 26. Green Building Myth #1 Consumers only care about the bottom line; they don’t care about green 26 National Green Building Certification
  • 27. Green Building Reality #1 Homebuyers do care about green and are willing to pay for it! 27 National Green Building Certification
  • 28. 28 National Green Building Certification
  • 29. Builder’s View  Builder in Delaware states that 70% of his current sales are generated as a result of potentially seeing that sign and touring that home  Builder in Texas with 25 year track record of building green energy efficient homes says 2008 was a good, 2009 will be better 29 National Green Building Certification
  • 30. From The Wall Street Journal February 4, 2009 Journalist Wendy Bounds asks: “Is it worth the dough to get the props?  One-third of home buyers surveyed said they were willing to pay a $20,000 premium for a green home.  A key factor: the promise of reduced operational costs.”* *According to a 2008 McGraw-Hill Construction report 30 National Green Building Certification
  • 31.  20K per house is a lot of green  Most customers will never have to come up with that much  Many builders are closer to Bronze or Silver than they realize 31 National Green Building Certification
  • 32. Green Building Myth #2 Green Building is a fad; it’s not very important to homebuyers 32 National Green Building Certification
  • 33. Green Building Reality #2 There is significant interest and inevitable growth in green building and green building certification 33 National Green Building Certification
  • 34. Market Trends  McGraw-Hill says market is approaching “tipping point” and predicts green building may triple from 2008-2013  Growing consumer demand, dramatic changes in last 3 years  Regulatory mandates - energy  Development of consensus standard  High-performance homes becoming mainstream  Moving beyond just energy – evolution to consumer desire for total “green” offerings  Inevitable growth – Environmentally conscious buyers (boomers, Gen X and Y) 34 National Green Building Certification
  • 35. Green Certification Programs  Guidelines/Standards based green programs  35+ sponsored by HBAs across the U.S. in 10 years  Local modifications to reflect climate and style  150,000 certified homes nationally thru 2007 35 National Green Building Certification
  • 36. Green Building Myth #3 Building green is too expensive 36 National Green Building Certification
  • 37. Green Building Reality #3 National Green Building Program is affordable 37 National Green Building Certification
  • 38. Cost Analysis & Comparison  Generally there are 3 costs associated with building & certifying to National Green Building Certification  Construction Costs  Verification/Testing Costs  Certification Fees 38 National Green Building Certification
  • 39. 1. Verification Costs  Determined locally between Builder and Verifier  Market rate based on supply and demand  More than 350 Verifiers with National coverage  100’s more in the process of becoming accredited  Inspections typically taking 90-120 minutes each (rough & final)  Many verifiers also provide other inspection/testing services and are already on site  Testing fees set by the market 39 National Green Building Certification
  • 40. 2. Certification Fees  Single-Family Homes  $200 per home for NAHB members  $500 for non-members of NAHB  Multifamily buildings  $200 per building ($500 for non-NAHB members) plus per-unit fee ($20)  Land Development  Design Approval ($2,500)  Certified Development ($2,500) 40 National Green Building Certification
  • 41. 3. Combined Costs as Percentage of House Cost Emerald/ Rating System Bronze/Certified Silver Gold Platinum GBG 1.0 – 1.4% 2.3 – 3.4% 4.7 – 6.4% NA NGBS 1.1 – 1.7% 2.8 – 3.1% 6.9 – 7.6% 16.3 – 16.9% LEED-H 3.6 – 5.6% 5.1 – 7.4% 11.2 –13.5% 17.3 – 22.9% Note: All 3 of these programs are in their infancy, so costs are likely to change as the programs develop. Base House is minimum code. Dallas production house cost of $172,700 is represented. 41 National Green Building Certification
  • 42. Green Building Myth #4 It is difficult and complicated to build green 42 National Green Building Certification
  • 43. Green Building Reality #4 Many builders find green building to be “very easy” or somewhat easy” 43 National Green Building Certification
  • 44. Industry Trends in 2 Green annual Professional Builder magazine survey nd findings (2008): Respondents found the program “Very or Somewhat easy to use”  Energy Star Program 70%  NAHB Green 44%  LEED-H 23% Respondents found the program “Very or Somewhat reliable”  Energy Star Program 73%  NAHB Green 50%  LEED-H 48% 44 National Green Building Certification
  • 45. NAHB & NAHB Research Center 45 National Green Building Certification
  • 46. Roles and Responsibilities of the Major Players  NAHB  NAHB Research Center  Local HBAs – Porter County Builder’s Association 46 National Green Building Certification
  • 47.  Promoting green = major priority for NAHB  Co-sponsored ANSI standard development with ICC  Funded www.nahbgreen.org  2,753 registered users  Growing at 17%/month  10,000 user sessions in July  Green is key topic for NAHB meetings:  IBS  NAHB board meetings  Nation’s Building News  Promotional materials created for HBAs  Active nationally with advocacy on green  NAHB National Green Building Program 47 National Green Building Certification
  • 48.  NAHB Research Center only NAHB- authorized certifying body for National Program Certification  Research Center role:  Develop National Green Building Certification scoring tool and inspection criteria  Accredit and oversee verifiers; list accredited verifiers on www.nahbgreen.org  Issue project certification 48 National Green Building Certification
  • 49.  Process Overview – Green Buildings  100% Verification  Verification by an NAHB Research Center accredited verifier  Verification inspections required at rough and final  Verifiers may provide design consulting assistance to builder but this is not required  Multifamily buildings will be certified by building, not by unit  Builder agreement required (once for all houses) 49 National Green Building Certification
  • 50. HBAs Affiliated with the National Programnational network of  An effective affiliated HBAs  Utilizing NAHB Research Center’s National Green Building Certification  Assisting in local efforts in education, outreach and green marketing in their markets and to their members and industry partners 50 National Green Building Certification
  • 51. 51 National Green Building Certification
  • 52. Porter County Builders Association  Green Building Alliance  Living Green Expo – Ivy Tech, Valparaiso, November 6-8  Vendors  Education opportunities  Community Education  Green Parade September, 2009  Muddy Boots Tours  Other Education  Green Certified Development – First in nation  CGP Designation (Certified Green Professional)  Valparaiso, May 19-21  Indianapolis, April 21-23, September 14-16 and October 25-27  Education, Education, Education  Real Estate agents, appraisers, lenders, builders, community  www.pcbaonline.com 52 National Green Building Certification
  • 53. APPENDIX Some of the Technical Details 53 National Green Building Certification
  • 54. Additional Program Enhancements  “Green Approved” program  Building Systems; Modular Products  Pre-approved points for green products 54 National Green Building Certification
  • 55. Defining Green, cont. Points Required for Homes Certified Under the Guidelines Points Required for the 3 different levels of Green Building Category Bronze Silver Gold Lot Design, Preparation, and Development 8 10 12 Resource Efficiency 44 60 77 Energy Efficiency 37 62 100 Water Efficiency 6 13 19 Indoor Environmental Quality 32 54 72 Operation, Maintenance, and Homeowner Education 7 7 9 Global Impact 3 5 6 Add’l points from secions of your choice 100 100 100 Totals 237 311 395 55 National Green Building Certification
  • 56. Defining Green  National Green Building Program – History  1995: Green Building gained more mainstream industry interest  2005: NAHB Research Center developed NAHB Model Green Home Building Guidelines per NAHB’s request  1995-2008: 50+ local green building programs developed and implemented, many were Guidelines- based 56 National Green Building Certification
  • 57. Defining Green, cont.  2007: NAHB and ICC announce partnership to develop consensus-based National Green Building Standard  2008: National Green Building Program and Certification (based on Guidelines) launched at 2008 International Builders’ Show  2009: ANSI National Green Building Standard Approved expanding the national certification to include developments, multi-family, renovations and additions 57 National Green Building Certification
  • 58. NAHB Research Center Overview  Established in 1964  Wholly-owned, for-profit subsidiary of NAHB  Mission  To improve the quality, affordability, durability, and environmental performance of housing  Methodology  Promote innovation in home building products/systems, technology, and construction processes 58 National Green Building Certification
  • 59.  Capabilities  Market Research  Quantitative  Qualitative  Lab Testing & Certification  Third-party accredited  Product Certifications  Quality Management Certifications  Field Evaluations & Demonstrations  Code Compliance  Information Dissemination  ToolBase 59 National Green Building Certification
  • 60.  Our Team - 85 employees with expertise in all aspects of home building science & research  Mechanical, Structural, Electrical Engineers  Land Planners  Wood Scientists  Economists  Architects  Builders/Remodelers  Lab Technicians  Market Research Experts 60 National Green Building Certification
  • 61.  Laboratory Credentials = business culture of rigor and credibility  IAS (International Accreditation Service)  Test Lab (ISO 17025)  Inspection Agency (ISO 17020)  NIST – NVLAP (National Voluntary Laboratory Accreditation Program)  Test Lab (ISO 17025)  U.S. Department of Housing & Urban Development  Use of Materials Bulletin Administrator  IAPMO (International Association of Plumbing and Mechanical Officials)  Recognized Test Lab  City of Los Angeles, CA  Testing Agency License  Others 61 National Green Building Certification