George W. Bush Presidential Library's Blueprints Filled with Green, Following Trend of Other Big Public Buildings

09:19 AM CDT on Sunday, March 14, 2010

By RANDY LEE LOFTIS / The Dallas Morning News / This e-mail address is being protected from spambots. You need JavaScript enabled to view it

A big environmental change is coming to a muddy, skinned-off patch of former condominium land jammed up against one of Dallas' busiest freeways.

Native prairies, oaks and wildflowers, reminders of North Texas' natural past, are destined for the site's future. So, too, is a new building of nearly a quarter-million square feet that planners promise will meet the highest environmental and energy standards.

Details are just emerging about the environmental aspects of the George W. Bush Presidential Center, which will rise between Southern Methodist University's campus and North Central Expressway. Groundbreaking for the center, which will house the former president's archives, foundation, institute and a museum, is expected late this year.

The center's 23-acre tract will include native plants and sophisticated conservation measures, such as a wetland and underground cisterns to catch and recycle most rainwater. The building, made of Texas materials over cast concrete, will get nearly 10 percent of its electricity and all of its hot water from solar energy.

Questions remain, however. It's not known, for example, whether the landscape maintenance will adhere to organic principles, shunning chemical fertilizers and pesticides in favor of lower-impact methods.

Neither is it known whether the center will be built with green cement, made with the least smog-causing emissions. Dallas and other North Texas cities have embraced green cement policies for their own purchases to promote cleaner air.

Even with issues remaining, the center is part of a trend of big public projects being designed and built with an eye toward environmental impact and image.

"There's definitely a need for our society to evolve to more sustainable development practices. It makes sense for a variety of reasons," said Mark Langdale, president of the George W. Bush Foundation, which is coordinating the project.

"This is an important national building that could serve as a role model and as an example of using these important sustainable development practices."

Certification push

The project aims to earn a Leadership in Energy and Environmental Design platinum certification, the highest rating offered by the U.S. Green Building Council, which promotes energy-efficient construction with low-toxicity materials. Former President Bill Clinton's library in Little Rock, Ark., has LEED platinum certification.

To reduce energy use, the Bush building will have energy-efficient windows, heating and air conditioning, in addition to window overhangs to provide shade. Solar power will provide hot water and some electricity.

South of the building, the landscape design is meant to evoke North Texas ecosystems, from a strip of woods to a blackland prairie and a wetland. Plantings and earthworks serve aesthetic purposes, suggesting rolling natural terrain, while concealing a drainage system designed to conserve water during dry periods and ease downstream impacts after storms.

Buried cisterns, or tanks, will hold storm runoff and the water from the building roofs and heating and cooling equipment. Water will circulate back into irrigation most of the time, entering storm sewers only under extreme flood conditions.

The site design and plantings seek "to create a landscape that is ecologically rich and environmentally sustainable, while providing a dynamic experience in every season of the year," says a summary produced by landscape architects Michael Van Valkenburgh Associates.

Drawing allusions to Texas habitats was important to the Bushes, Langdale said. The couple's ranch house in Crawford, which they built in 1999, incorporates green steps such as capturing rainwater and using natural breezes for ventilation, he said.

"It's something that actually the Bushes have practiced in their own lives for a long time," Langdale said. "It's definitely something that reflects the personalities of President and Mrs. Bush."

The re-created habitats on the grounds will not truly restore the native ecosystem because, like any slice of urban land, it will require constant human intervention. Anyone attempting environmental improvements in a city accepts that reality, said Dr. S.H. Sohmer, president and director of the Fort Worth-based Botanical Research Institute of Texas.

Housed for decades in a nicely restored but nature-free downtown warehouse, the research institute broke ground in December on a new, 69,000-square-foot home on 5.2 acres in Fort Worth's Cultural District.

Like the Bush center, the institute's new home will seek LEED platinum certification and will feature a miniature prairie on the grounds. It also includes a "living roof" with plants instead of conventional coverings.

"It's tough to reconstruct a native prairie" since natural processes such as wildfire and grazing by buffalo are gone, Sohmer said.

"But at the end of the day, it's a great learning tool. For all I know, we may be the only piece of prairie these kids are ever going to see."

Concrete questions

Some questions remain about the environmental plans for the Bush center. The landscape design, for example, doesn't say anything about organic gardening methods.

Howard Garrett, the Dallas-based organic gardening guru known as the Dirt Doctor, called that a big problem.

For any project claiming environmental benefits, "the single most important thing you can do is to eliminate toxic material being thrown into the soil and into the environment and saving water," said Garrett, a landscape architect, organic gardening consultant, radio host and Dallas Morning News columnist.

"They're being hypocritical if it's not a totally organic deal – if they're trying to make a point about it being an environmental landscape," Garrett said.

Langdale said the landscaping plan would automatically provide environmental benefits regardless of the maintenance method.

"It uses less water, it attracts more butterflies and insects, and it's just healthier for the environment," he said.

The center hasn't committed to a completely organic program.

"I don't know if this thing will be maintained 100 percent organically or not," Langdale said. "But just by the nature of what we're going to plant there, the use of chemicals is going to be greatly [reduced] because there's just less need for it."

Another remaining question involves the building's most basic ingredient: concrete. It isn't known whether the concrete will be made using the most environmentally benign methods.

Making cement, which is concrete's main ingredient, creates emissions of smog-causing nitrogen oxides as well as other pollutants. Kilns in the Ellis County city of Midlothian, the source of most cement in North Texas, are the region's biggest industrial sources of air pollution.

The North Texas environmental group Downwinders at Risk persuaded Dallas and other North Texas cities to adopt a green cement policy to help clean up the region's air. The cities agreed to buy only cement made with the fewest emissions for their own civic projects, rewarding companies with the lowest environmental impacts.

The policy does not bind other buyers, but Jim Schermbeck of Downwinders at Risk said the Bush center could set an example and boost its environmental credentials by voluntarily adhering to it.

"If they want the building to be environmentally conscientious, it seems to me they need to pay attention to the primary local issues – air quality and water conservation," he said.

"The green cement issue is certainly a premier local environmental concern that's been addressed by Republicans and Democrats alike."

Schermbeck said a decision to use green cement would signal that clean air is a mainstream value. "It would be a milestone," he said.

Langdale said project planners anticipated buying low-impact building materials as part of the LEED platinum certification process, but had not specifically considered pollution in the making of the cement.

He said they would do so now that the issue has been raised.

"I'll have to look into that," he said.

GREEN STEPS

Steps the George W. Bush Presidential Center says it will take to seek a platinum rating from the U.S. Green Building Council's Leadership in Energy and Environmental Design program:

Energy

•Deep building overhangs and sunshades to minimize solar-heating loads

•Photovoltaic panels to meet 9.5 percent of the building's energy demand

•Solar hot-water panels to supply 100 percent of the building's domestic hot water

•High-performance, low-iron insulated glazing units to reduce heating and cooling loads

•Green roofs, gardens and highly reflective roofing materials to reduce heat-island effect

•Highly efficient heating, ventilating and air-conditioning systems to reduce energy demand

Materials

•Locally sourced building materials

•20 percent recycled materials

•Recycling waste generated during construction

Indoor air quality

•Products and finishes that emit no volatile organic compounds

•Mechanical air filtration

Landscaping and water

•Native landscape species to reduce irrigation need

•Harvesting and storing rainwater to meet 50 percent of the irrigation demand

•Landscape features that treat rainwater before storage

SOURCE: George W. Bush Presidential Center

The USGBC Awards Image Design, LLC and Frontier Construction LEED Gold Certification for their Green Home

March 8, 2010 Kingsley, MI

Today the new residence at 6524 Marsh Rd. was awarded LEED “Gold” certification by the U.S. Green Building Council (USGBC) for achievement in green homebuilding and design. LEED for Homes is a national third party certification system for energy efficient, healthy, green homes. LEED certified homes complete a technically rigorous process that includes a home energy (HERS) rating and onsite inspections to verify that the home is built to be energy and water efficient, environmentally sound, and a healthier place to live.

This home is one of 86 Michigan projects that have been certified under the LEED for Homes program, the 27th home to receive LEED “Gold” certification and the first LEED certified home in Grand Traverse County.

The home was designed by Eric A. Hughes of Image Design LLC, a national awarding winning sustainable residential design firm based out of Grand Rapids Michigan and built by the national award winning builder Joel Diotte of Frontier Construction based out of Maple City, Michigan. You may remember that this same home was the show home for the 2009 Michigan Energy Fair.

Green homes have substantially lower utility bills and may qualify for advantageous financing, lower insurance rates and government incentives.

“The U.S. Green Building Council is proud to help celebrate Image Design, LLC’s and Frontier Construction commitment to greener living,” said Michelle Moore, Senior Vice President of Policy & Market Development, U.S. Green Building Council. “Their leadership – demonstrated at 6524 Marsh Rd. is at the national forefront of quality; and their example can help us all to live better by reducing our environmental footprint, cutting our utility bills, and coming home to a healthier place to live.”

Located in Kingsley, Michigan – 6524 Marsh Rd. incorporates the following Sustainable/Green features:

ICF Construction by BuildBlock

Tulikivi masonry heater

The U.S. Green Building Council Awards Nottawaseppi Huron Band of the Potawatomi Tribe

LEED Gold Certification for Green Homebuilding

February 15, 2010

Today, 3 residential homes on the Pine Creek Reservation South of Kalamazoo Michigan, were awarded LEED Gold certification by the U.S. Green Building Council (USGBC) for achievement in green homebuilding and design. LEED for Homes is a green home certification system for assuring homes are designed and built to be energy- and resource-efficient and healthy for occupants. LEED certified homes complete a technically rigorous process that includes a home energy (HERS) rating and onsite inspections to verify that the home is built to be energy and water efficient, environmentally sound, and a healthier place to live.

The three homes are each 2000 square feet with 3 bedrooms and 2 bathrooms and will be used as rental units for low- and moderate-income elders and families of the Tribe.  The homes will be open to the public and available for a community open house on March 30th, 2010 from 9:00 am – 2:00 pm.

They are just 3 out of 58 local West Michigan homes that have been LEED Certified through the Alliance for Environmental Sustainability; the Grand Rapids based USGBC LEED for Homes Service Provider.  The homes were designed & built by Rivertown Homes by Design; Grandville, Michigan known for their expertise in building LEED homes and the project was managed by the Skillman Corporation; Grand Rapids, Michigan.  Green homes have substantially lower utility bills and may qualify for advantageous financing, lower insurance rates and government incentives.  This project included funding provided by: Housing and Urban Development Indian Housing Block Grant; Housing Urban Development Indian Housing Block Grant-American Recovery and Reinvestment Act; and Housing and Urban Development-Rural Housing and Economic Development Grant.

“Choosing to go for LEED certification started with the construction of our Health Center in 2007 and has carried forward into our residential home construction as well.  Green building is an important sustainable approach that demonstrates our commitment to the environment and the community.” comments Dan Green, Executive Planner for the tribe.

Through their commitment to green homebuilding, the NHBP Tribe is also helping to keep homeownership affordable.

“By being LEED certified, the three homes serve as a model of greener living for the entire community,” said Nate Kredich, Vice President of Residential Market Development for the U.S. Green Building Council. “These homes are at the national forefront of quality; and their example can help us all to live better by reducing our environmental footprint, cutting our utility bills, and coming home to a healthier place to live.”

Specific information about the homes- The homes focus heavily on reducing energy use through very high performance insulation and weather sealing.  The three bedroom models feature low-e argon windows, high efficiency lighting fixtures, compact fluorescent bulbs and high density insulation.  Other energy efficiency upgrades include Geothermal Heat systems with programmable thermostats  and Energy Recovery Ventilators (ERV’s) for, mechanical ventilation.  . 

As a result of incorporating energy saving products and technologies the three homes have achieved an average 46 Home Energy Rating System (HERS) score.  Homes’ HERS score must be 85 points or lower to qualify for Energy Star.  A score of 85/100 would represent a home being 15% more energy efficient that a standard code built home, so the low score of 46/100 represents these homes being 54% more energy efficient than today’s standard home.

LEED Building Features:

o   1416 finished main level sq. ft.

o   Superior Precast Foundation Wall System

o   Material and Labor Efficient Off –Site Panelized Construction

o   Use of Environmentally Preferable Products

o   Geo-Thermal HVAC System

o   On Demand Hot Water System

o   Efficient Hot Water Distribution Layout

o   Very High-Efficiency Plumbing Fixtures and Fittings

o   High Perfomance Window Package

o   Extensive Caulk and Seal Package

o   Energy Saving Insulation Package

o   Exceptional Energy Performance

o   HERS Index  46

o   Energy Star Appliances

o   Energy Star Fixtures

o   Limited Conventional Turf

o   90% of all Plantings are Drought - Tolerant

Located  twenty four miles South of Kalamazoo Michigan, The Pine Creek Reservation is also home to Tribal community support services such as a 6,000 square foot LEED Certified  Health Center, a Community Center, and Administration Office. 

Directions to from Battle Creek: take M-66 south 12 miles; go west on S Drive South and travel 2 miles; go south on 1-1/2 Mile Rd. and travel 0.25 miles; go west on Pamptopee Trail to arrive at homes.

From Kalamazoo/Grand Rapids: take US-131 to Schoolcraft and go east on Elisa (turns into W. Avenue West just outside of town) and travel 20 miles; go south on 1-1/2 Mile Rd. and travel 0.5 miles (turns into S Drive South); go south on 1-1/2 Mile Rd. and travel 0.25 miles; go west on Pamptopee Trail to arrive at homes.

Contacts-

Nottawaseppi Huron Band of the Potawatomi

For more information you may contact Dan Green, Executive Planner at (616) 249-0159.

Alliance for Environmental Sustainability

For more information you may contact Calvin DeLano, Executive Director at (616) 458-6733.

Rivertown Homes by Design

For more information you may contact Jim DeVries Residential Designer at (616) 534-0466

Do green buildings make dollars and sense?

by David Pogue - 3.1.10

After several years of developing, introducing and implementing sustainability practices in a wide range of office building projects around the country, CB Richard Ellis (NYSE: CBG) arrived at the logical question: To what extent are we impacting the industry, and is the effort we’re making to improve our clients’ operating efficiencies producing positive outcomes?

In 2009, CBRE, in conjunction with the University of San Diego (USD), launched the largest study of sustainable commercial buildings of its kind, focusing on 154 buildings in 10 widely dispersed geographic markets. All the buildings had earned an Energy Star label and ranked in the top 25th percentile of comparable Energy Star buildings in either 2008 or 2009. The buildings, which totaled more than 51 million square feet and had an average Energy Star score of 83, ranged from fewer than three years old to more than 40, and in size from 80,000 to more than one million square feet. The study used comparison market data collected by the CBRE Information Management teams in the 10 markets and also relied on quarterly building data updates from various CBRE real estate managers.

Key to the study’s success was the collaborative work of Norm Miller, who has a doctorate in real estate and finance, and his USD research team at the Burnham-Moores Center for Real Estate. With a CBRE managed population of nearly 3,000 occupants, the team had access to a deep pool of respondents which, through a systematic process and the accurate collection of data, could render critical insights into the motivation of tenants and the choices they make based on a building’s environmental components.

Expectations, experiences and attitudes toward sustainability play an important role in tenants winning corporate support for an occupied space, with improved recruitment, retention and, especially, increased productivity being key factors.

These results produced a number of interesting findings:

For starters, the economic findings reinforced prior studies that demonstrated the positive impact of sustainability on both achievement of rental rate and occupancy rates of the buildings. Most pronounced was the finding that buildings achieved rental rates 13.1 percent higher than buildings in previous studies. The influence on vacancy levels was less dramatic, with a smaller than expected 3.5 percent reduction. One conclusion is that the surveyed tenants are weighted toward real estate and financial services firms, so were more directly impacted by the downturn and their sector’s larger retrenchment.

Of particular interest were operating expenses: Virtually no difference was found in overall expenses, although energy-related costs were lower and there were few if any outlier buildings (anomalies outside the curve) with extreme expense costs. A shortcoming of the study may be the small number of comparison properties reviewed, which is being addressed in 2010.

There were several noteworthy results in relation to operating expenses. Foremost was the impact that Energy Star had on a building’s performance. Consistently the data proved that even a single point improvement in the Energy Star score equates to a 80 percent to 100 percent improvement in energy usage. In other words, an improvement from 50 to 80 in Energy Star score would result in about 25 percent reduction in energy usage and costs.

Another key finding related to separate utility metering, which was analyzed in 23 buildings that employed it. Separately metered tenants on average had an eye-opening 21 percent lower utility costs compared with those occupying buildings with a consolidated meter. Clearly, making tenants accountable for their own utility usage has a significant impact on consumption behaviors.

The opportunity to analyze a large, engaged occupant population was the true innovation of the CBRE-USD study. While there have been other studies focused on the economic aspects of sustainable buildings, the CBRE-USD study represented the largest-ever study to hear directly from occupants, with more than 750 responding.

The study found that most tenants had been in business for a reasonably long period of time and represented a mix of public and privately held firms. It also showed that a significant number were implementing assorted sustainability practices. The tenants indicated that such practices enhanced their business and aided in recruitment and retention efforts, although fewer than expected shared their vision of sustainability, or its outcomes, with clients or employees.

The most interesting results were seen in the area of employee productivity. More than 55 percent of respondents experienced reduced employee sick days in “green” spaces over their previous locations, with an average reduction of 2.88 days. When extrapolated to employee compensation levels, the economic benefit translates to slightly more than $5 per square foot, a significant number.

When the broader question of general productivity was posed, the answer was even more surprising: For those responding “Yes,” and providing a metric of change, the improvement was 4.88 percent. Again, applying the self-reported compensation levels to this percentage, we can predict an additional economic benefit of nearly $20 per square foot for the typical occupant. Overall, our study indicates that occupants gain on average nearly $25 per square foot in economic benefit from a “green” space, or more than 85 percent of the average rental rate.

We also asked a number of questions regarding the leasing process, the likelihood of seeking similar sustainable spaces in future leases and the wiliness to actually pay a higher rent for more sustainable space. Respondents indicated little actual “green” language written into their current lease, although they intended to seek this type of space in future occupancies. Not surprisingly, there was a general resistance in willingness to pay more in future rent for a sustainable space; however, most buildings were already commanding a rental premium.

The CBRE-USD longitudinal study continues, and is expanding in 2010 to include specific questions for occupants of CBRE’s growing Leadership in Energy and Environmental Design-Existing Buildings portfolio. While noteworthy, first-year findings require validation over multiple years. For now, it’s safe to conclude that sustainable buildings command a significant rental premium and have marginally better occupancies than the general market. Residual benefits include fewer employee sick days and higher productivity, factors that may influence a tenant’s choice of occupied space. We look forward to future studies that could reinforce developing trends and to gaining insight into the value of sustainable space and its benefits to the commercial real estate market.

Norton Shores Meijer receives environmental award

© 2010 MLive.com. All rights reserved.

Proposed Incentives for LEED Buildings

Written by Andy Newton        

Thursday, 25 February 2010 20:23

As Michigan's economy continues to struggle, state legislators agree that bringing new business and new jobs into the state is part of the formula for improvement. The Michigan Senate has recently introduced a bill that not only satisfies that criteria, but also aims to improve Michigan's ecological footprint. Originally introduced by Senator Jim Barcia (D) on February 4, 2010, Senate Bill 1114 would authorize additional tax breaks to recipients of certain brownfield tax breaks, if the building used "renewable" energy systems (like wind, solar, heat pumps, etc.) to meet certain energy efficient building standards (michiganvotes.org). These additional tax breaks would only apply to buildings that are in accordance with LEED specifications.

Senate Bill 1114 was introduced to amend the Brownfield redevelopment financing act, legislation enacted in 1996. The legislation from 1996 was initially introduced as a means to clean up Michigan's pollution with the potential to strengthen the economy through entrepreneurship. While the 2010 version only aims to amend the bill, it provides greater incentives to invest dollars into Michigan's economy by replacing brownfields with new businesses that provide new jobs.

The state generally defines a brownfield site as any expansion, redevelopment, or reuse of land that is or may be contaminated with pollutants (epa.gov). Though many of these brownfield sites do in fact house a number of contaminants, the clean up and eventual redevelopment of this land has become increasingly common as clean, useable land for development becomes less available in populated areas. Replacing these blighted areas of pollution and contamination with energy-efficient developments is clearly one of the main goals of Senate Bill 1114.

Because you would be hard-pressed to find anybody opposed to cleaning up pollution and building under LEED guidelines, there is relatively little opposition to the bill. Members of both parties in the state Senate support the bill as Republicans such as Jason Allen and John Pappageorge support Democrat Jim Barcia as the primary sponsor of the bill. Governor Granholm would probably support the bill, as she has pushed similar legislation through the state Congress throughout her term. Possible opposition could come from those who believe further tax cuts would be a detriment to the state budget, though any possible opposition hasn't showed their hand to this point.

Further reason to believe this bill will go through is that the entire nation seems to be putting greater emphasis on becoming more eco-friendly. Various LEED initiatives including legislation, executive orders, etc. can be found in 45 states, with legislation being passed as recently as November of 2009 in Rhode Island (usgbc.org). It is likely because of this that Michigan senators are attempting to amend the bill. With so many states providing incentives for "green" development, Michigan must go above and beyond the other states in order to induce investment within its borders.

Sources:

http://www.michiganvotes.org/2010-SB-1114

http://www.legislature.mi.gov/documents/2009-2010/billintroduced/Senate/pdf/2010-sIB-1114.pdf

http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1852

The U.S. Green Building Council clears the air: LEED 2009 does not include a new provision allowing LEED-certified projects to be "decertified" as suggested by recent headlines.

by Rachel Z. Azoff

The Washington, D.C.-based U.S. Green Building Council (USGBC) refutes an article that ran in the San Francisco Business Journal last month stating that under LEED 2009, the latest version of LEED, USGBC now has the power to “decertify” an existing LEED-certified development. The article, “Risk of LEED Decertification Looms Large for Real Estate,” stated that “… a little known provision in LEED 2009, which allows LEED certifications to be challenged and removed at any time after they have been certified, presents a threat to all existing and future LEED 2009-certified projects.”

"The idea that there is this new thing call decertification is inaccurate," says Scot Horst, USGBC's senior vice president for LEED. "The way LEED works is we have a rating system; you send us information about your project, and we certify to that. But let's say that there was someone out there who lied about the prerequisite information or unintentionally provided inaccurate information. We have always had a policy to go back and say this wasn’t what it was represented to be. That is nothing new."

Potential ramifications of not meeting LEED's prerequisites include losing a credit and potentially dropping to a lower LEED certification level. The only way you would ever lose a certification that you've already been awarded is if you didn't meet the prerequisites of the system; USGBC currently does not evaluate or monitor the ongoing operations of a building, Horst adds.

The fear of decertification likely stems from one of the Minimum Program Requirements (MPRs) of LEED 2009. The MPRs, which apply only to projects seeking certification under LEED 2009, list the basic characteristics that a project must possess to be eligible for certification under the LEED 2009 rating systems. Requirement No. 6 states that “all certified projects must commit to sharing with USGBC and/or GBCI [Green Building Certification Institute] all available actual whole-project energy and water usage data for a period of at least five years."

But the information collected under MPR6 is for research purposes only and won't be used to penalize project teams with buildings that do not perform as well as intended, according to the LEED 2009 Supplemental Guidance document published in November 2009.

“MPR6 specifically is an exercise to improve the future iterations of LEED rather than to strip the certification from prior program participants and all information remains confidential,” says USGBC communications manager Ashley Katz. "LEED certification is granted based on a building’s design and construction at the time certification is sought. LEED certification does not evaluate the ongoing operation or maintenance of a building—there are too many factors that have to do with how the building is operated.”

So what’s the deal with the LEED Gold-certified Northland Pines High School in Wisconsin referenced in the Business Journal as potentially facing decertification? "We are reviewing the project to make sure that what was represented in the [LEED] documentation was accurate," Horst says. "That is consistent with what a good certification program would do." He declined to comment on who brought the project to the USGBC's attention for review.

Is Green Lending Your New Mortgage Niche?

By: David Reinholtz
The hot topic in real estate is green homes. People are building, buying, and remodeling existing homes to make them more energy efficient, healthy, and have less of an impact on the environment. While it is a fairly recent trend in housing, it started in commercial building more than two decades ago as owners looked for ways to cut rising utility bills. The field quickly grew beyond a concern with energy to incorporate materials, techniques, and products that conserve scarce resources, recycle used materials, and avoid the use of toxic ingredients and processes. As better and cheaper products and materials became available, green or eco-friendly building spread to residential construction.

Green building is fast becoming the norm for new commercial projects, but it isn't clear how many houses are actually being built with energy saving and environmentally friendly features because the statistics still conflate commercial and residential markets. In 2006, McGraw Hill Construction estimated that by this year green building would represent 10 percent of all construction and the president of the U.S. Green Building Council (USGBC) said last April that green construction had contributed $178 billion to the gross domestic product during the previous eight years. But in neither case do we know if residential building represents 20 percent or 90 percent of those figures. There is anecdotal evidence, however, that green building is a growing factor in both new residential construction and remodeling. For example, the State of California just enacted the first statewide "green" building code and 6,500 builders have signed on to build Energy Star approved homes. USGBC's LEED program which originally monitored green commercial construction now offers five levels of certification for housing. We can also assume that however big green home building is today, it will get bigger; to what degree is still an unknown.

So far there hasn't been a lot of news about financing green homes, partially because a special mortgage would be overkill for many purchases. A lot of green building merely reflects new technology applied to old products such as Low-e (low emission) coating on window glass or formaldehyde-free kitchen cabinets. Where a green house is just a regular home with green features, a plain vanilla mortgage will work just fine.

Nonetheless, some environmentally sensitive homes do have financing issues. A subset of very green homes such as domes, Yurts, and earth bag homes are growing in popularity but many projects do not get off the ground because the chosen construction methods, while valid, confound appraisers or scare lenders. Even ordinary homes that have a single unique feature such as a geothermal HVAC system or solar embedded roofing shingles can run afoul of underwriting guidelines. Construction loans are also an issue. Think of all the usual problems inherent in placing construction financing for a single family home and quadruple it if the house is really green. Building codes have not yet caught up with green technology - it is another year until even California's new regs take effect - nor have many of the loan officers who must sign off on construction advances.

There are green mortgages available but so far they aren't widely known. FHA offers a wrinkle to its 203(b) and 203(k) loan guidelines that permits recognition of the cost savings of green improvements. The Energy Efficient Mortgage (EEM) program allows the borrower to incorporate the cost of some green improvements on the top of the approved mortgage without qualifying for the higher loan amount or basing the down payment on it. Freddie Mac, Fannie Mae and VA mortgages offer similar concessions and Energy Star, a joint effort of the EPA and Department of Energy, has a pilot program underway which, in addition to the features of the FHA program, encourages lenders to offer preferential rates, reduced fees, or lower closing costs to borrowers. There are caps on most of these EEM programs but they are still useful, especially where customers are pushing the limits of their ratios.

It would appear that, at present, green home financing has the following characteristics: 

* The size of the potential market is unknown. 
* There is an unmet demand for creative products in some sectors. 
* Programs are that are available are not being appropriately marketed and promoted. 
* No one really understands what is going on. 
* Not many people are doing anything about it.

Sounds like the very definition of an opportunity. There appears to be a need for entrepreneurs who understand what is going on out there and some excellent reasons to position yourself as a green financing expert.
It is a pretty empty niche. If there are lenders specializing in green loans they are doing a poor job of marketing. Google green mortgages, green lenders, or green mortgage brokers and you will get millions of hits but the top ones lead to blogs bemoaning the lack of green financing or to the Websites of mortgage brokers named Green. USGBC's national green directory lists only six financing sources. The National Association of Realtors offers members a green designation, the Mortgage Bankers Association does not. 

Becoming the green mortgage expert in your area code or even staking a national claim to the title would not be difficult. First, learn the basics of green building and green home ownership. Most of the methods and terminology are pretty simple and there are dozens of books and Websites to get you started. It is important that you are familiar with the underlying concepts of green building such as sustainability and, while you should be aware of materials and products, technical knowledge is not required; it is good to know what a geothermal heat pumps is but not necessary to know how it works.

Learn who the players are. LEED, USGBC's Leadership in Environmental Education and Design program mentioned above, is one of the gatekeepers, establishing standards for green building and for professionals in the field. Energy Star has long rated appliances and other products for energy efficiency and is now doing the same for new homes. The National Association of Home Builders is active in developing green residential building standards and the Forest Stewardship Council certifies the sustainability of wood-based building materials. You will quickly learn about another dozen or so organizations and agencies which are active in the field.

Qualify for existing programs such as those offered by FHA or the pilot Energy Star program. If you are in a position to do so, develop programs of your own. Talk with your investors about this potentially explosive market and how you might capitalize on it. If you can develop a conduit for financing some of the more extreme building techniques, you will be a market maker. Techniques such as straw bale building have a long history, are structurally valid, and are growing in popularity, but can be mortgage orphans.

Be prepared to educate appraisers and insurance agents. A lack of comps or the ability to secure hazard insurance kills a lot of green financing. There is no reason a home with a conventional gas furnace cannot be a comp for one with a geothermal system and when an insurance agent balks at insuring a straw bale house he needs to know those houses have four times the burn rating of stick construction. You will sometimes have to force these people to lift their heads out of their rule books.

Marketing a green business focus is easy and relatively inexpensive. 

Contact green builders in your area as well as realtors, especially any holding the NAR green designation. Qualify as a partner with Energy Star at http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.pt_lender_benefits. If you can provide financing for any of more outr building techniques, contact and post on the dozens of blogs that support their use; financing is a big topic of discussion. Advertise in the USGBC and NAHB directories and, depending on your focus, in community directories in green conscious cities such as Austin, Texas; Portland, Oregon; and Cambridge, Massachusetts.

The trend to green building could become a mega trend; develop into the industry standard, or merely remain a small and healthy market sector. Mortgage lenders who start to focus on this market early could find a steady flow of new business or a potential bonanza. In any case, they will be ahead of the curve when the competition finally discovers the market.

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