Southern California Green Real Estate Blog

SEE…DOE…HUD…DOT…EPA…NGA… IS BIG BROTHER WATCHING? SOCIALIZING URBAN DEVELOPMENT IN THE UNITED STATES

By Jodi Summers

Loyal readers of this blog are well aware that the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Transportation (DOT) are working together in hopes of helping American families gain better access to affordable housing, more transportation options, and lower transportation costs by creating affordable, sustainable communities.

Taking further steps in that direction, more government agencies are getting involved to attempt to make our new millennium existence easier all around. The U.S. Environmental Protection Agency (EPA) and the Department of Energy (DOE) have formed the State Energy Efficiency (SEE) Action Network to help states achieve the maximum cost-effective energy efficiency improvements possible in offices, buildings, industries and homes by 2020.

SEE…DOE…HUD…DOT…EPA…that’s a lot of government agencies making sure cities develop in the “proper” manner…socialized urban growth.

But, oops we wander, back to SEE…under the oversight of the EPA and the DOE, SEE will work with representatives from state and municipal governments, business leaders, public utility commissioners and others to make life in this country of energy efficiency for all.

The group plans to work from the framework set by the National Action Plan for Energy

Efficiency Vision for 2025, which was laid out in 2006…only the new goal is to make it a 2020 initiative…following the model set forth by California. You know AB 32 - California’s landmark 2006 global warming initiative.

(Not only has AB 32 been adopted by the Obama Administration, the International Code Council announced the state’s newly adopted Green Building Standards Code will serve as a foundation for commercial buildings worldwide AND California participated in the launch of China’s first GHG emissions registry. When his term comes to an end in November, Arnold Schwarzenegger should follow in the steps of former Vice President Al Gore in becoming a champion for energy programs that influence national and international policies…perhaps even work warmly with Mayor Antonio Villaraigosa on Los Angeles’ 30/10 initiative…ah but we dream….)

SEE will offer technical assistance, and help with specific policy and program issues to advance energy efficiency efforts. Efforts may include financing solutions, residential efficiency programs and improving availability of energy usage information, etc…

Already the DOE and EPA have a request list that includes 32 state public utility commissions wanting assistance with energy efficiency programs.

SEE…DOE…HUD…DOT…EPA…and don’t forget the NGA…the National Governors Association is another national agency championing states with energy efficiency efforts.

Earlier this year, the National Governors Association Center for Best Practices selected six states - Colorado, Hawaii, Massachusetts, North Carolina, Utah and Wisconsin - to participate in the organization’s Policy Academy on State Building Efficiency Retrofit Programs.

The academy, funded by the DOE (you remember them, working with DOT among other liaisons…), is designed to help states develop strategies and action plans to improve the energy efficiency of existing building and reduce costs and emissions.

SEE…DOE…HUD…DOT…EPA…NGA… is Big Brother is watching?

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http://www.businessgreen.com/business-green/news/2257243/agencies-action-buildings

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REAL ESTATE RETROFITTING STATISTICS

Edited by Jodi Summers

* Residential and commercial buildings consume 40 percent of the energy and represent 40 percent of the carbon emissions in the United States. Building efficiency represents one of the easiest, most immediate and most cost effective ways to reduce carbon emissions and save money on energy bills while creating new jobs.

* Existing techniques and technologies in energy efficiency retrofitting can reduce energy use by up to 40 percent per home and lower total associated greenhouse gas emissions by up to 160 million metric tons annually.

* Residential and commercial retrofits also have the potential to cut energy bills by $40 billion annually.

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http://www.energy.gov/news/8870.htm

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http://content.usatoday.com/communities/greenhouse/post/2010/04/white-house-awards-452-million-to-retrofit-homes-businesses/1

THE EPA WANTS TO IMPROVE YOUR BUILDING

By Jodi Summers

Southern California Edison is one of a handful of state utilities selected to partake in the U.S. Environmental Protection Agency’s new pilot program – the Building Performance with Energy Star program. The goal of the program is similar to some of SoCal’s green building initiatives - to further improve energy efficiency in commercial buildings.

According to the EPA, energy use in commercial buildings accounts for 17 percent of U.S. greenhouse gas emissions at a cost of over $100 billion per year. Energy Star Leaders prevented the emissions of more than 220,000 metric tons of carbon dioxide and saved more than $48 million across their commercial building portfolios in 2009.

The goal of the Building Performance with Energy Star program is to help utilities and state energy-efficiency programs become Energy Star Leaders and achieve greater energy savings and reduce greenhouse gas (GHG) emissions by targeting whole building energy improvements with their business customers.

In addition to Southern California Edison, pilot program partners are Com Ed, MidAmerican, National Grid, the New Jersey Board of Public Utilities, Pacific Gas & Electric and Wisconsin Focus on Energy.

Key elements of the pilot, which follows the EPA’s Home Performance with Energy Star program, include:

* Incorporating use of the EPA’s Portfolio Manager, the agency’s online energy measurement and tracking tool, to score building performance;

* Approaching energy efficiency opportunities in the context of findings from whole building assessments; and

* Creating a robust delivery network for whole building efficiency services.

The program will allow operators of commercial properties to realize greater savings by strategically planning and implementing whole-building energy efficiency improvements. SoCal Edison and the other selected partners are expected to help business customers plan and implement energy-efficiency improvements over time, starting with low-payback measures that can create revenue to fund capital upgrades in the future.

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http://www.environmentalleader.com/2010/05/06/epa-help-states-utilities-reap-greater-energy-savings/

http://www.greenbiz.com/news/2010/05/06/epa-powers-building-performance-new-energy-star-program

http://www.cbpca.org/

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THE GOVERNMENT HAS $42 BILLION FOR GREEN REAL ESTATE

By Jodi Summers

Experts have calculated that the Obama administration has put together more than 30 programs worth $72 billion that can be used to increase energy efficiency in commercial buildings and multifamily housing.

“The Obama Administration has tremendous, untapped opportunities to use legal tools already at its disposal to enhance the energy efficiency and sustainability of the nation’s multifamily and commercial buildings — all without seeking new funds or authority from Congress,” observes a report prepared by Van Ness Feldman. “All told, the programs identified in this report have the potential to directly provide or facilitate over $72 billion in funding or loan guarantees, and can leverage hundreds of billions of dollars in private investment through instruments such as mortgage insurance and regulation of the real estate lending market.”

Titled “Using Executive Authority to Achieve Greener Buildings: A Guide for Policymakers to Enhance Sustainability and Efficiency in Multifamily Housing and Commercial Buildings,” the legal analysis, suggests several ways the Obama administration can use existing programs to enhance building efficiency:

* Reforming appraisal and underwriting practices at Fannie Mae and Freddie Mac Greening federal banking regulations

* Promoting flexible FHA insurance products

* Integrating energy efficiency and sustainability criteria into competitive grants and funding formulas

* Strengthening minimum property standards for federal housing and economic development programs to reflect energy efficiency and sustainability standards

* Improving performance standards applicable to federal buildings and leases

* Refining guidance applicable to the energy efficient commercial buildings tax deduction and the national historic preservation tax credit

* Using SBA funding mechanisms to support small business energy efficiency investments

* Streamlining Title 17 loan guarantees to make them suitable for buildings

“As an early adopter of green buildings and the LEED green building certification system, the federal government has been a leader in bringing green buildings to cities and towns across America,” said Roger Platt, the USGBC’s senior vice president of Global Policy & Law declared. “This new report unveils an even larger opportunity for the Obama Administration to increase our nation’s energy efficiency, while creating thousands of jobs and saving taxpayers money.”

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http://www.usgbc.org/government

http://www.greenbiz.com/news/2010/04/30/obama-already-has-72b-tap-green-buildings-study-says

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GREEN REAL ESTATE – GOOD FOR CALIFORNIA, GOOD FOR THE COUNTRY?

By Jodi Summers

Once again, when it comes to green, what’s good for California tends to become good for the country. The US Environmental Protection Agency and the Department of Energy have formed an action group to help states achieve the maximum cost-effective energy efficiency improvements possible in offices, buildings, industries and homes by 2020. Dubbed the State Energy Efficiency (SEE) Action Network, they are seeking to create a national version our statewide CALGREEN building code.

The CALGREEN Code was devised California Building Standards Commission is setting minimum green-building criterion that may, at the discretion of any local government entity, be applied.

“You will have a whole bunch of cities that never would have included this in their building doing it, and doing it in a way that won’t kill the economy,” observes Matthew Hargrove, a vice president with the California Business Properties Association. “Outside the coastal areas it will be helpful - like in West Sacramento, where they looked into creating a green building code but balked because it’s cumbersome to develop and they didn’t have the resources.”

Take the whole bunch of cities concept and spread it across a bunch of states. The DOE and EPA noted that 32 state public utility commissions requested help from the agencies last year regarding energy efficiency programs. SEE will be working with states to provide technical assistance and policy and program issues to advance energy efficiency efforts. Those state efforts may include financing solutions, residential efficiency programs and improving availability of energy usage information.

No doubt SEE’s goals will be similar to what we set forth in California. The purpose of CALGREEN’s codes is to improve public health, safety and general welfare by enhancing the design and construction of buildings through the use of building concepts that have a positive environmental impact, and by encouraging sustainable construction practices in the following categories:

• Planning and design

• Energy efficiency

• Water efficiency and conservation

• Material conservation and resource efficiency

• Environmental air quality

As California did with CALGREEN, now SEE and other DOE programs will help states develop strategies and action plans to improve the energy efficiency of existing building and reduce costs and emissions.

One small step for man, one giant leap for mankind.

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http://www.businessgreen.com/business-green/news/2257243/agencies-action-buildings

http://www.socalmultiunitrealestateblog.com/?p=673

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LOS ANGELES WINS THE ENERGY STAR GRAND PRIZE…AGAIN

By Jodi Summers

Bravo to all of you greening your properties. According to our friends at the environmental protection agency, approximately 3,900 commercial buildings earned the Energy Star rating in 2009, representing annual savings of more than $900 million in utility bills and more than 4.7 million metric tons of carbon dioxide emissions. Impressively, nearly 9,000 buildings across the nation have earned the Energy Star for superior energy efficiency during the past 11 years.

A standing ovation for our beloved Los Angeles. The EPA ranked us as first on its annual list of metro areas with the most energy-efficient buildings. We led the field with 293 buildings labeled Energy Star in 2009, up from the 262 that qualified the city as No. 1 in 2008.

Kudos also go to our nation’s capitol. Washington, DC, ranked fourth place in 2008, is now in second, with 204 Energy Star buildings, up from 136 the previous year.

Energy Star is a voluntary labeling program run by the EPA and U.S. Department of Energy. In order to qualify, a building or manufacturing plant must score in the top 25 percent based , on the agency’s National Energy Performance Rating System and use less energy, reduce operating expenses and cause fewer greenhouse gas emissions.

Roll the credits - the top 25 cities with the most energy star labeled buildings in 2009 are:

1. Los Angeles, CA

2. Washington, DC

3. San Francisco, CA

4. Denver, CO

5. Chicago, IL

6. Houston, TX

7. Lakeland, FL

8. Dallas-Fort Worth, TX

9. Atlanta, GA

10. New York, NY

11. Minneapolis-St. Paul, MN

12. Portland, OR

13. Boston, MA

14. Seattle, WA

15. Detroit, MI

16. Sacramento, CA

17. San Diego, CA

18. Austin, TX

19. Miami, FL

20. Phoenix, AZ

21. Ogden, UT

22. Charlotte, NC

23. Indianapolis, IN

24. Des Moines, IA/Fort Collins, CO/Philadelphia, PA

25. Louisville, KY

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http://www.greenbiz.com/news/2010/03/23/la-takes-top-spot-epa-green-building-rankings

http://www.costar.com/News/Article.aspx?id=624F645516667EF93A09A56906607F8E&ref=100&iid=174&cid=383F14EEE265B182474DA2442BACBBBF

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STUDIES SHOW GREENING BUILDINGS IS GOOD FOR THE BOTTOM LINE

by Jodi Summers

It’s been studied and documented, greening your office building improves your bottom line. Let us share a round of facts with you.

“Increasing energy efficiency in our buildings can increase occupancy rates, leasing prices and sale prices — all in a highly-competitive environment,” confirms a new report from Ceres and Mercer titled “Energy Efficiency and Real Estate: Opportunities for Investors”

The report also concluded that real estate managers who don’t put energy efficiency measures into their properties risk lower profits in the future.

And having said that, if you’re adhering to our statewide CALGREEN Code, you’re already ahead of the game. The California Building Standards Commission is setting minimum green-building criterion that may, at the discretion of any local government entity, be applied.

Buildings currently account for 39 percent of the energy used in the United States, 71 percent of electricity use, and 39 percent of C02 emissions. A recent report by McKinsey & Company notes that the U.S. economy has the potential to reduce annual non-transportation energy consumption by roughly 23 percent by 2020, eliminating more than $1.2 trillion in waste.

Republicans and Democrats actually agree that green real estate is important. In June 2009, legislation was approved by the House of Representatives to control climate change by limiting heat- trapping pollution and creating a trading system for pollution permits. The bill calls for cutting greenhouse-gas emissions from 2005 levels by 17 percent by 2020, and 83 percent by mid- century.

So everyone thinks this is a great idea, but how does this affect your bottom line? A 2009 Maastricht University study that showed rental premiums of 3.5 percent on “green” U.S. office properties, while Energy Star buildings had 6 percent higher occupancy rates and sold for a premium of 16-17 percent per square foot.

Here are some of the noteworthy conclusions from these reports about investing in energy efficient real estate:

- Energy efficient buildings offer a measurable financial benefit over non-green buildings, in the form of higher rent, occupancy, valuation and lower operating costs.

- No- or low-cost energy efficiency improvements can have quick and dramatic impacts on property operating costs.

- Poorly performing buildings represent an opportunity for a significant investment gain when it comes to energy efficiency.

- Additional improvements require planning, partnerships and initial investments, but can also decrease operating expenses and raise resale and leasing value.

- Investment managers and products that consider energy efficiency and green building practices are increasingly available to investors.

- Barriers to implementing energy efficiency improvements are eroding as demand grows, research on the benefits continues, and supporting products and services improve feasibility and cost-effectiveness.

Essentially, greening your building is the best thing for your bottom line. In confirmation, we’ll site a report from KPMG, which finds that energy consumption in buildings can be cut by 30 to 50 percent and still produce a positive return on investments.

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http://www.environmentalleader.com/2009/12/22/energy-efficiency-and-real-estate-profits-go-hand-in-hand/

http://www.socalofficerealestateblog.com/?p=953

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THINK GREEN - REAL ESTATE IS STRONGER NEAR METROPOLITAN AREAS

By Jodi Summers

The statistics are in – properties closer to cities with thriving economies and mass transit will outperform outer-ring suburbs and “exurban areas,” where high gas prices are making long car commutes prohibitively expensive and rising energy costs mean higher utility bills. We’re thinking and spending green.

This information comes courtesy of a report released by the Urban Land Institute and PricewaterhouseCoopers LLP. The study interviewed more than 600 real estate experts, including investors, developers, lenders and real estate brokers.

The report, Emerging Trends in Real Estate 2009, projects that the worst of the national housing downturn may be over, with the bottom of the market being confirmed by the end of this year.

The report is focused on commercial real estate such as commercial, office, industrial and apartment properties, but includes an overview of housing markets and how they may be affected by macroeconomic trends and changing regional conditions. Some interesting observations:

· Seattle, San Francisco, Washington, D.C., New York and Los Angeles are expected to be the top five markets for investment in commercial property in 2009.

· Wall Street layoffs and office vacancies will help Seattle and San Francisco to reclaim top rankings for commercial investment from New York.

· The thriving energy industry is expected to boost commercial investment prospects for “long-forlorn” Texas markets, but Midwest factory towns are expected to lose even more ground,

· “24 hour cities” like New York, Boston, Chicago, San Francisco, and Washington, D.C., should also benefit from mass transit systems that can free residents from car dependence.

But, gains in the attractiveness of 24-hour cities could be “squandered” if cutbacks in police, fire and sanitation result in less safe and appealing environments. Falling property values and the economic slowdown are expected to cut into tax revenues, forcing cities to reduce services.

“Nothing would undermine 24-hour dynamics more quickly than rising crime rates,” the report warned.

· “24 hour cities” like New York, Boston, Chicago, San Francisco, and Washington, D.C., should also benefit from mass transit systems that can free residents from car dependence.

But, gains in the attractiveness of 24-hour cities could be “squandered” if cutbacks in police, fire and sanitation result in less safe and appealing environments. Falling property values and the economic slowdown are expected to cut into tax revenues, forcing cities to reduce services.

“Nothing would undermine 24-hour dynamics more quickly than rising crime rates,” the report warned.

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SCHWARZENEGGER HAS A GREEN LEGACY, BUT OUR ECONOMY STILL SUCKS

SCHWARZENEGGER HAS A GREEN LEGACY, BUT OUR ECONOMY STILL SUCKS

By Jodi Summers

Arnold Schwarzenegger is now an international superstar in more than one arena. First it was movies, now it’s global warming. During his terms as governor, California’s bold energy programs are influencing national and international policies.

Three years after California adopted AB 32 - California’s landmark 2006 global warming initiative,

1- The Obama Administration announced that the U.S. Environmental Protection Agency will adopt a vehicle emissions standard modeled after California’s first-in-the-nation standard

2- The International Code Council announced the state’s newly adopted Green Building Standards Code will serve as a foundation for commercial buildings worldwide.

3- California participated in the launch of China’s first GHG emissions registry.

Being a leader in clean energy standards has made California a leader in clean energy investment and green jobs. In the last three years, more than $6 billion in venture capital has been pumped into California’s economy, making us the national leader in the number of clean businesses. Green jobs have also skyrocketed, growing 10 times faster in California than in other areas. This growth is expected to continue. According to a recent study, California is on track to more than double its power generated by solar panel installations in 2009.

Sounds brilliant, yet our economy is currently down the tubes. Only our future is filled with green.

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http://gov.ca.gov/issue/energy-environment/

http://www.sgvtribune.com/news/ci_13345618?source=rss

http://www.latimes.com/business/la-fi-power16-2009sep16,0,3412344.story

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WHAT DOES THE GOVERNOR’S WIFE THINK? SACRAMENTO IS DIVIDED ON HOW TO MOVE FORWARD ON NEW GREEN ENERGY INITIATIVES

WHAT DOES THE GOVERNOR’S WIFE THINK? SACRAMENTO IS DIVIDED ON HOW TO MOVE FORWARD ON NEW GREEN ENERGY INITIATIVES

By Jodi Summers

The Governor and the Sacramento Democrats are divided in how to move forward and meet the state’s newly targeted energy goals. The Democratics wants the green power and the green jobs to come from within the state. The Governator just wants it done. As state 1st Lady Maria Shriver is a Democrat by birth married to a Republican, and a savvy politica in her own right – balance may lie with her opinion on the issue…would California’s First Lady offer her opinion please.

The recent update to AB 32, California’s landmark 2006 global warming initiative, says California electric utilities must get 33% of their power from renewable sources by 2020.

“With this action, we will ensure that California remains the pioneer in clean energy and clean jobs,” the Governor proudly declared.

The governor’s Executive Order S-21-09 came three days after Democratic lawmakers passed legislation Senate Bill 14 and Assembly Bill 64mandating the same goal, but in a way Schwarzenegger’s office said was too restrictive. The governor said he will veto the Democratic bills because they would limit how much wind, solar and geothermal energy utilities could import from other states.

The two sides did not disagree about the need or the practicality of setting an ambitious 33% renewable energy target. The conflict is over how California should reach the goal and the cost of making it happen.

The Democratic bills were backed by some but not all of the state’s utilities. The Los Angeles Department of Water and Power, Pacific Gas & Electric Co. and Sempra Energy supported the bills, while Southern California Edison Co. and the Sacramento Municipal Utility District asked the governor for vetoes. The bills also drew support from labor unions and consumer advocates and opposition from manufacturers and independent energy-generating companies.

A recent study by the California Public Utilities Commission observed that said 11 new transmission lines and additional infrastructure would be needed to meet the 33 percent goal. Transmission lines typically cross several communities a well as federal land, so the permitting and siting process is very involved, bureaucratic - and time consuming. SC+E noted that each line can take about 10 years to build, and the total cost to electricity customers would be $115 billion.

Critics of the governor’s mandate argue that California will end up subsidizing green jobs in other states and Canada.

Our first lady, Maria Shriver Schwarzenegger, a former newscaster, had Democratic roots that run deep. Maria is a member of Kennedy family through her mother, Eunice Kennedy Shriver, the sister of President John Kennedy and Senator Ted Kennedy. Her father, Sargent Shriver, is a former ambassador and a former Democratic candidate for the U.S. Vice-Presidency. Married to a Republican governor, the two must find political peace at the dinner table. California is interested in her opinion on how the state should achieve the bold green energy stance of Executive Order S-21-09.

http://gov.ca.gov/issue/energy-environment/

http://www.sgvtribune.com/news/ci_13345618?source=rss

http://www.latimes.com/business/la-fi-power16-2009sep16,0,3412344.story

http://www.historyguy.com/biofiles/shriver_maria.html

http://movies.yahoo.com/movie/contributor/1800320712/photo/573730

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