March 18, 2004

An Introduction to the An Introduction to the

U.S. Green Building CouncilU.S. Green Building Counciland theand the

LEEDLEED Green BuildingGreen BuildingRating SystemRating System®

An Introduction to the An Introduction to the

U.S. Green Building CouncilU.S. Green Building Counciland theand the

LEEDLEED Green BuildingGreen BuildingRating SystemRating System®

Copyright 2004, U.S. Green Building Council®

U.S. Green Building CouncilU.S. Green Building Council

The nation's foremost coalition of leaders The nation's foremost coalition of leaders from across the building industry working from across the building industry working to promote buildings that are to promote buildings that are environmentally responsible, profitable, environmentally responsible, profitable, and healthy places to live and work. and healthy places to live and work.

The organization’s purpose is to:The organization’s purpose is to:• IntegrateIntegrate building industry sectors building industry sectors• LeadLead market transformation market transformation• EducateEducate owners and practitioners owners and practitioners

U.S. Green Building CouncilU.S. Green Building Council

National nonprofit organization based in National nonprofit organization based in Washington, DCWashington, DC

Diverse membership of organizationsDiverse membership of organizations Consensus-drivenConsensus-driven Committee-based product developmentCommittee-based product development Developer and administrator of the Developer and administrator of the

LEEDLEED®® Green Building Rating System Green Building Rating System

What is “Green” Design?What is “Green” Design?

Design and construction practices that Design and construction practices that significantly reduce or eliminate the significantly reduce or eliminate the negative impact of buildings on the negative impact of buildings on the environment and occupants in five broad environment and occupants in five broad areas:areas: Sustainable site planning Sustainable site planning Safeguarding water and water efficiency Safeguarding water and water efficiency Energy efficiency and renewable energyEnergy efficiency and renewable energy Conservation of materials and resourcesConservation of materials and resources Indoor environmental qualityIndoor environmental quality

Environmental Impactof Buildings*

Environmental Impactof Buildings*

• 65.2% of total U.S. electricity consumption 65.2% of total U.S. electricity consumption 11

• > 36% of total U.S. primary energy use > 36% of total U.S. primary energy use 22

• 30% of total U.S. greenhouse gas emissions 30% of total U.S. greenhouse gas emissions 33

• 136 million tons of construction and demolition 136 million tons of construction and demolition waste in the U.S. (approx. 2.8 lbs/person/day) waste in the U.S. (approx. 2.8 lbs/person/day) 44

• 12% of potable water in the U.S. 12% of potable water in the U.S. 55

• 40% (3 billion tons annually) of raw materials 40% (3 billion tons annually) of raw materials use globally use globally 66

* Commercial and residential* Commercial and residential

Benefits of Green BuildingBenefits of Green Building

Environmental benefitsEnvironmental benefits• Reduce the impacts of natural resource Reduce the impacts of natural resource

consumptionconsumption

Economic benefitsEconomic benefits• Improve the bottom lineImprove the bottom line

Health and safety benefits Health and safety benefits • Enhance occupant comfort and healthEnhance occupant comfort and health

Community benefitsCommunity benefits Minimize strain on local infrastructures and Minimize strain on local infrastructures and

improve quality of lifeimprove quality of life

Economic BenefitsEconomic Benefits

Competitive first costsCompetitive first costs Integrated design allows high benefit at low Integrated design allows high benefit at low

cost by achieving synergies between cost by achieving synergies between disciplines and between technologiesdisciplines and between technologies

Reduce operating costsReduce operating costs Lower utility costs significantlyLower utility costs significantly

Optimize life-cycle economic performanceOptimize life-cycle economic performance

Economic BenefitsEconomic Benefits

Increase building valuationIncrease building valuation• Using the income-capitalization method: asset Using the income-capitalization method: asset

value = net operating income (NOI) divided by value = net operating income (NOI) divided by the capitalization rate. If the cap rate is 7%, the capitalization rate. If the cap rate is 7%, multiply the reduction in annual operating multiply the reduction in annual operating costs by 7 to calculate the increase in the costs by 7 to calculate the increase in the building’s asset valuebuilding’s asset value

Decrease vacancy, improve retentionDecrease vacancy, improve retention Marketing advantagesMarketing advantages

Reduce liabilityReduce liability Improve risk managementImprove risk management

Productivity BenefitsProductivity Benefits

Improve occupant performanceImprove occupant performance• Estimated $29 Estimated $29 ––168 billion in national 168 billion in national

productivity losses per year productivity losses per year 11

• Student performance is better in daylit Student performance is better in daylit schools. schools. 2, 32, 3

Reduce absenteeism and turnoverReduce absenteeism and turnover• Providing a healthy workplace improves Providing a healthy workplace improves

employee satisfactionemployee satisfaction

Increase retail sales with daylightingIncrease retail sales with daylighting• Studies have shown ~40% improvement Studies have shown ~40% improvement 44

West Bend Mutual Insurance Company(West Bend, WI)

West Bend Mutual Insurance Company(West Bend, WI)

Leadership in Energy & Environmental Design®

Leadership in Energy & Environmental Design®

A leading-edge system for designing, A leading-edge system for designing, constructing, operating and certifying constructing, operating and certifying

the world’s greenest buildings.the world’s greenest buildings.

USGBC’s flagship rating system is USGBC’s flagship rating system is LEED for New Construction and Major LEED for New Construction and Major

Renovations (LEED-NC)Renovations (LEED-NC)

Why Was LEED® Created?Why Was LEED® Created?

Facilitate positive results for the Facilitate positive results for the environment, occupant health and environment, occupant health and financial returnfinancial return

Define “green” by providing a standard Define “green” by providing a standard for measurementfor measurement

Prevent “greenwashing” (false or Prevent “greenwashing” (false or exaggerated claims)exaggerated claims)

Promote whole-building, integrated Promote whole-building, integrated design processesdesign processes

Why Was LEED® Created?Why Was LEED® Created?

Use as a design guidelineUse as a design guideline Recognize leadersRecognize leaders Stimulate green competitionStimulate green competition Establish market value with recognizable Establish market value with recognizable

national “brand”national “brand” Raise consumer awareness Raise consumer awareness Transform the marketplaceTransform the marketplace!!

LEED-NC®

Market Transformation

LEED-NC®

Market Transformation

*As of 03.16.04*As of 03.16.04

93 Certified Projects*93 Certified Projects*1188 Registered Projects*1188 Registered Projects*

154 M gsf* 49 States 11 Countries*

All statistics exclude pilot projectsAll statistics exclude pilot projects

LEED-NC®

Market TransformationLEED-NC

®

Market Transformation Registered Projects by State* - Top 10Registered Projects by State* - Top 10

*As of 03.16.04*As of 03.16.04 All statistics exclude pilot projectsAll statistics exclude pilot projects

0

5000000

10000000

15000000

20000000

25000000

185 86 67 62 54 51 45 42 35 35

CA PA OR WA NY MA MI TX IL VA

State and Number of Projects

Gro

ss S

qu

are

Fee

t

LEED-NC® Market TransformationLEED-NC® Market Transformation Registered Projects by Building Type*Registered Projects by Building Type*

**As of 03.16.04As of 03.16.04 All statistics exclude pilot projectsAll statistics exclude pilot projects

Assembly 2%

Assembly (conv. center,

place of worship, theater)

2%

Laboratory3%

Industrial (manufacturing, warehouse, pub. works)

4%

Public Order & Safety (police,

jail, courthouse)

5%

K-12 Education

6%

Multi-Use22%

Commercial Office17%

Higher Education

9%

Multi-Unit Residential

3%

LEED-NC® National ReportsLEED-NC® National Reports Registered Projects by Owner Type*Registered Projects by Owner Type*

* As of 03.16.04* As of 03.16.04All statistics exclude pilot projectsAll statistics exclude pilot projects

Individual1% Profit

Corporation26%

Local Government

25%Nonprofit

Corporation19%

State Government

12%

Other7%

Federal Government

10%

LEED-NC® in the USA LEED-NC® in the USA

Federal Government Use:Federal Government Use:

General Services Administration General Services Administration (GSA)(GSA) LEED Certified projects beginning in 2003 LEED Certified projects beginning in 2003

U.S. Air ForceU.S. Air Force LEED Application Guide for LodgingLEED Application Guide for Lodging

U.S. Army Corps of EngineersU.S. Army Corps of Engineers Adoption ofAdoption of LEEDLEED® ® (SPiRiT)(SPiRiT)

Department of StateDepartment of State Department of Energy (DOE)Department of Energy (DOE) Environmental Protection Agency Environmental Protection Agency

(EPA) (EPA) Grant for LEED Existing BuildingsGrant for LEED Existing Buildings

U.S. NavyU.S. Navy Grant for LEED ResidentialGrant for LEED Residential

LEED-NC® in the USALEED-NC® in the USA

State Government State Government Use:Use:

CaliforniaCalifornia MarylandMaryland MassachusettsMassachusetts New JerseyNew Jersey New YorkNew York OregonOregon PennsylvaniaPennsylvania

Local Government LEEDLocal Government LEED®®

UsersUsers

• Austin, TX Austin, TX • Arlington, VAArlington, VA• Boulder, CO Boulder, CO • Cook County, ILCook County, IL• Los Angeles, CALos Angeles, CA• Portland, ORPortland, OR• San Diego, CASan Diego, CA• San Jose, CASan Jose, CA• San Mateo, CASan Mateo, CA• Seattle, WA Seattle, WA

Local Use of LEED®Local Use of LEED®

Global Use of LEED®Global Use of LEED®

World InterestWorld Interest• Australia Australia • Canada*Canada*• China*China*• FranceFrance• Hong Kong Hong Kong • India*India*• Japan*Japan*• Spain*Spain*• Mexico*Mexico*• Italy*Italy*• Guam*Guam*

*Registered Projects

Diverse Owners and Buildings:Examples of Certified Projects

Diverse Owners and Buildings:Examples of Certified Projects

Technical Overview of LEED®Technical Overview of LEED®

Green building rating system, currently for Green building rating system, currently for commercial and institutional new commercial and institutional new construction and major renovation.construction and major renovation.

Existing, proven technologiesExisting, proven technologies Evaluates and recognizes performance in Evaluates and recognizes performance in

accepted green design categories accepted green design categories LEED product development includes LEED product development includes

existing buildings, commercial interiors, existing buildings, commercial interiors, multiple buildings, core & shell, and homesmultiple buildings, core & shell, and homes

Technical Overview of LEED®

(continued)Technical Overview of LEED®

(continued)

Whole-building approach encourages and Whole-building approach encourages and guides a collaborative, integrated design guides a collaborative, integrated design and construction processand construction process

Optimizes environmental and economic Optimizes environmental and economic factorsfactors

Four levels of LEED certification:Four levels of LEED certification:• Certified LevelCertified Level 26 - 32 points 26 - 32 points • Silver Level Silver Level 33 - 38 points 33 - 38 points • Gold LevelGold Level 39 - 51 points 39 - 51 points • Platinum LevelPlatinum Level 52+ points (69 possible)52+ points (69 possible)

LEED-NC® Point DistributionLEED-NC® Point Distribution

Water

Efficiency

8%Energy &

Atmosphere

27%

Materials &

Resources

20%

Sustainable

Sites

22%

Indoor

Environmental

Quality

23%

Five LEED credit categories

LEED-NC® Certification ProcessLEED-NC® Certification Process

A three step process:A three step process: Step 1:Step 1: Project RegistrationProject Registration

LEED Letter Templates, CIR access, LEED Letter Templates, CIR access, and on-line project listingand on-line project listing

Step 2:Step 2: Technical SupportTechnical Support Reference PackageReference Package Credit Inquiries and RulingsCredit Inquiries and Rulings

Step 3:Step 3: Building CertificationBuilding Certification Upon documentation submittal and Upon documentation submittal and

USGBC reviewUSGBC review

Certification BenefitsCertification Benefits

Third party validation of achievementThird party validation of achievement Qualify for growing array of state and local Qualify for growing array of state and local

government incentivesgovernment incentives Contribute to growing knowledge baseContribute to growing knowledge base LEED certification plaque to mount on buildingLEED certification plaque to mount on building Official certificateOfficial certificate Receive marketing exposure through USGBC Web Receive marketing exposure through USGBC Web

site, case studies, media announcementssite, case studies, media announcements

Recognition of Quality Buildings and Recognition of Quality Buildings and Environmental StewardshipEnvironmental Stewardship

LEED® ResourcesLEED® Resources

LEED Green Building Rating SystemLEED Green Building Rating System Training WorkshopTraining Workshop Reference PackageReference Package Professional AccreditationProfessional Accreditation Welcome PacketWelcome Packet Credit Rulings Credit Rulings Website (www.leedbuilding.org)Website (www.leedbuilding.org) Email Email (leedinfo@usgbc.org) (leedinfo@usgbc.org)

For more informationplease visit

www.usgbc.org

For more informationplease visit

www.usgbc.org