Green Building

Panelists • Malcolm Lewis Constructive Technologies Group

Irvine, California

• Jeff Medanich McStain Neighborhoods

dg et …on any bu International Builders’ Show 2007 Orlando, Florida

Louisville, Colorado

• Dan Reeve La Jolla Pacific, Ltd.

Irvine, California

Objectives

Case Study: Terramor Village at Ladera Ranch

• Learn techniques necessary for a successful green-building program • Learn key strategies in implementing a green-building program • Learn green building techniques you can apply today with minimal budget impact

Ladera Ranch, California

Green Development Program

Terramor Village at Ladera Ranch „ „

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Green Development Program developed by the master developer, Rancho Mission Viejo, and planning/urban design firm, EDAW Twelve merchant builders selected 1260 units 155 acres Price points: condoscondos- $250,000$250,000-$900,000 SFDSFD- $650,000$650,000-$2,000,000

Site/Landscape Design „ „ „ „

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Plant palette to be drought tolerant, native Locally acquired landscape plant material Shade elements Colored or textured paving materials

Water Conservation „ „ „ „ „

Upgraded irrigation controllers Rain shutshut-off devices Mulch use Limited turf Drip irrigation

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Green Development Program „

Energy „ „ „ „ „

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Green Development Program

Solar panels – roof mounted Energy Star designated appliances Fluorescent lighting Low E windows Electric vehicle outlet

Materials and Resources „ „ „ „

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Indoor Environmental Quality

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Natural lighting Low VOC paint Low VOC carpet

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Low formaldehyde insulation

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2-bin kitchen recycling center Construction waste recycling Use of rapidly renewable resources, FSC wood Recycled material site amenities

Budget Impacts Direct costs: „ „ „ „

Adds $3.00$3.00-5.00 per square foot Solar panels on roof OffOff-site/onsite/on-site elements Training for compliance

Indirect costs: „ „ „

Waste recycling Infrastructure Training for compliance

EV Outlet

Low Formaldehyde Insulation

Low E Windows

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Construction Waste Recycling

Fluorescent Lighting

2-bin Recycling Center

Energy Star Dishwasher Low VOC Paint

Solar Panels

Solar Electric Inverter

Tankless Water Heater

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Summary • Malcolm Lewis Constructive Technologies Group

Irvine, California

Introduction to CTG Energetics InIn-House Specialists:

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Mechanical Engineering Electrical Engineering Architecture Ecology Environmental Engineering Construction Civil Engineering Energy Modeling

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Urban Planning

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Trend: Homebuilding Growing “Greener” Greener” „ CostCost-Benefits of Green HomeHome-Building „ Overview and Comparison of Residential Green Building Programs „

Services: „

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LEED / Green Building Consulting LEED Documentation Energy Modeling Corporate Sustainability Commissioning Energy Audits Sustainable Communities Consulting Green Construction Training

Castle & Cooke, Gold Nugget Award 2005, Bakersfield – CA Green Builder Program

Homebuilding Going Green in California… California… 2006 2004 2002 2001 2000 2007 2005 2003

Arabella, Pardee Homes, San Diego EPA Energy Star Program

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Builder’ Builder’s Involvement Over Time 100

Clarum Homes, Hamilton Park, Menlo Park, CA

90

Zero Energy Homes

70

80 Heavy Involvement (more than 60%) Moderate Involvement (1560%) Low Involvement (less than 15%)

60 50 40

Vista Montana, Clarum Homes, Watsonville, CA

30 20 10 0 2005

2006

2007

Source: Residential Green Building SmartMarket Report. McGraw-Hill Construction, 2006

Decisions at Different Scales Must be Made by Different Players

Trends Driving Green Building

Master Developers

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Increased Education

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Environmental Conditions

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Innovation

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Emphasis on Efficiency

Builders

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Competitive Advantage

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Codes and Regulations

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Superior Performance Consumer Demand

„ 70

72

74

76

78

80

82

84

86

Design and construct the housing products Tremendous impact on actual building sustainability, sustainability, water efficiency, landscaping, etc.

Homebuyers & Tenants

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Energy Cost Increases

Design and construct the community infrastructure Develop design guidelines for Builders Very influential on community sustainability

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Source: Residential Green Building SmartMarket Report. McGraw-Hill Construction, 2006

Need to understand the value, savings & rationale Decisions on sustainable features of Individual Homes

Homebuyer “Green” Green” Preference

Market Challenges & Opportunities Growing awareness of sustainability in residential markets

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But getting people to pay for it is challenging „ „

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Competing with Granite countercounter-tops & other very tangible aspects… aspects… Slowing housing market

Challenge & Opportunity: „

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Translate Sustainability from nebulous undefined “good” good” to real dollars through quantification of benefits, utility savings, and environmental impacts Optimize Environmental “Bang for the Buck” Buck” „

Costs vs Benefits

100% % Home Buyer's Willing to Pay .

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SFD

SFA

Avg

80%

60%

40%

20%

0% $0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

Green Premium, $/month

Source: American LIVES Inc., Terramor Homebuyer Survey Highlights, 2005

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Homebuyer “Green” Green” Preference „

Portland’ Portland’s “Green” Green” MLS „

83% of homebuyers would spend more in up front costs for energy efficiency if it translated into lower utility bills

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43% of homebuyers believe that indoor air quality is “very important” important”

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46% of homebuyers believe that photovoltaics are “very important” important”*

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Source: American LIVES Inc., Terramor Homebuyer Survey Highlights, 2005

Climate Change… Change… What’ What’s on the Horizon for Homebuilders CA State Attorney General Letter to Orange County Transportation Authority – Must Address Climate Change In EIR

Total Incremental Costs

$7,542

$4,765

SFD with PV (3,000 sq ft) $27,942

Rebates & Incentives

$2,590

440

$10,590

Net Cost

$4,952

$4,325

$17,352

$1.50

$1.31

$5.24

Estimated Cost per Square Foot Monthly Cashflow

$89

-$1

$83

ROI

29%

6%

13%

3

13

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Simple Payback

Other environmentallyenvironmentally-friendly amenities added to existing homes, such as onon-site solar power or highhighefficiency furnaces, will be searchable individually.

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"From Risk to Opportunity: How Insurers Can Proactively and Profitably Manage Climate Change” Firemen's Fund Insurance is launching a firstfirst-ofof-itsits-kind 'green‘ 'green‘ insurance coverage, including rate credits and other incentives, incentives, for commercial building owners who rerebuild damaged properties using green and LEED certified building practices. Marsh, Marsh, the world's largest insurance broker, and AIG, AIG, the world's largest insurer, have launched carbon emissions credit guarantees and other new renewable energyenergyrelated insurance products that are allowing more companies to participate in carbon offset projects and growing carbon emissions trading markets. The carbon trading market in the European Union alone is expected to hit $30 billion by the end of 2006.

Increasingly Comprehensive

Pro Forma

The new policy will mostly affect new homes, which will be searchable by the names of wellwell-known thirdthirdparty inspection programs.

Voluntary Green Building Programs

Incremental Cost Analysis SingleFamily Attached (1,500 sq ft)

Able to search for houses meeting green building standards as easily as they search for houses for sale by high school or ZIP code.

Insurance Industry Going Green „

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SingleFamily Detached (3,000 sq ft)

Portland, OR is the first -- and likely the largest -metropolitan area where a real estate listing service will make green building information available as part of standard search capabilities.

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California BIA - CA Green Builder

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NAHB’ NAHB’s - Green Building Guidelines

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EPA - Energy Star Certified New Homes

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USGBC - LEEDLEED-H Certification Program

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DOE’ DOE’s Zero Energy Homes

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Overview:

CA Green Builder

Overview:

Waste Diversion Management Pertinent Ventilation Requirements HVAC ducts diagnostically tested Low or no VOC for paints, lacquers, floor underlayment and carpet Pertinent Energy Efficiency Requirements HERS inspection and diagnostic evaluations shall be made. The California Energy Commission’ Commission’s “Lowered Duct Leakage” Leakage” criteria shall be met. HERS computer analysis shall demonstrate that the home is at least 15% more energy efficient that Title 24 requires, or is equivalent to an ENERGY STAR® STAR® Home.

Overview:

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Completed water conservation plan documenting 20,000 gallon reduction in water use (CGB(CGB-WS)

Required: Weather Based Irrigation

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Options: Drip Irrigation; Native Plants; Reduced Turf (< 75%);

Options: Clothes Washer (water factor ≤ 6.0 or better); Toilets (1.28 gal/flush, maximum); maximum); Recirculation DHW distribution with timer/temp demand OR Parallel DHW Piping

Energy is the most stringent (i.e. HERS test) IEQ is best management practices

Construction Waste Diversion is already required by AB 939 in CA Water reduction of 20,000 gal. annually is easily accomplished with installation of ET Controller and standard 1.28 gal. toilets Program Costs:

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Controller

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NAHB Green Building Guidelines

Lot Preparation and Design Resource Efficiency Energy Efficiency (contains the only requirements of the program) Water Efficiency/Conservation Occupancy Comfort and Indoor Environmental Quality

$150 application fee for each subdivision

Overview:

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NAHB Green Building Guidelines

Various certification levels (Bronze, Silver and Gold)

Opportunities to achieve greater # of points lie in Resource Efficiency and Energy

Highlight Advantage - Provides homeowner’ homeowner’s manual for operations

Overview:

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Requirements for both IEQ and Energy Efficiency

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Water Conservation

Designed to move green building into the mainstream marketplace for production homebuilders „

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Completed waste management plan outlining 50% landfill diversion

CA Green Builder

EPA Energy Star Program

Entirely focuses on energy efficiency (must (must be 15% more energy efficient than the code) Some requirements conflict with IEQ (i.e. tightly insulated home) Does not make economical sense in all climate zones Thermal Bypass Checklist has been a stumbling block for production homebuilders (EPA may revise in future iteration) Certification fees are generally included with any verification fees you may pay. „ Approx $1,000 per home.

Overview: „

Implementation „

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Targeting the top 25% of homes with best practice environmental features Various performance levels ranging from certified to platinum

Timing „

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USGBC LEEDLEED-Homes

Pilot phase until the end of 2006; program kickoff midmid-2007

Costs „

Registration costs - $500 to $2,000 per home

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Overview: „

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Overall Program Comparison

A Zero Energy Home program today is designed to reduce the total energy bills by over 60% and produce as much electricity as it consumes annually.

Zero Energy Homes have a number of advantages: „ „ „

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DOE’ DOE’s Zero Energy Homes

Improved comfort— comfort—an energyenergy-efficient building envelope reduces temperature fluctuations. Reliability— Reliability—a ZEH can be designed to continue functioning even during blackouts. Security— Security—a home that produces energy protects its owner from fluctuations in energy prices.

Zero Energy Homes optimize a variety of features: „ „ „

NAHB’s Green Guidelines

Passive solar heating and cooling EnergyEnergy-efficient construction, appliances, and lighting Solar thermal and solar electric systems.

Summary and Conclusions

Program Comparison „

Advantages: „

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Most comprehensive programs (i.e. depth of categories) = NAHB’ NAHB’s Guidelines and LEEDLEED-H Ease of implementation = CA Green Builder Most difficult to implement (without prior experience) = Zero Energy Homes and LEEDLEED-H

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Disadvantages: „

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Lots of action in Green Homebuilding

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Points do not necessarily transfer into environmental benefits None quantify costs or benefits None are truly locationlocation-specific

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Marketplace is very interested Regulatory environment pushing for it Insurance industry pushing it Costs are within market constraints

Numerous programs to choose from Still much refinement and evolution needed!

Who is McStain?

• Jeff Medanich

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McStain Neighborhoods

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Louisville, Colorado

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Medium sized builder constructing approximately 350350-400 homes per year A Pioneer Green Builder in Colorado Nationally known as a High Performance Builder Celebrating our 40th anniversary “Forty Years and Still Learning” Learning”

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Who We Aren’ Aren’t:

Affiliations: „

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How do We Address These Challenges?

Challenges „

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Sensitive to the environmental impact of development and new construction Effective marketing Consumer awareness and education Why is it important to by a Green built home Trade partner (vendors, suppliers, sub contractors) awareness and training

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Careful site selection Well thought out and defined land plan Careful attention to community development and density while maintaining open space Involvement in urban infill and redevelopment projects

Examples: „ „ „

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Colorado Built Green Program (involved in the formation and growth of the program) EPA Energy Star Program (100% of homes tested and receive an Energy Star HERS rating) Department of Energy Building America program United States Green Building Council LEED for Homes Pilot Builder Energy Star Indoor Air Package pilot builder

Stapleton Airport Lowry Air Force Base Gates Complex (includes development of a deconstruction plan)

Construction of Research homes: „ „ „ „

1986 EcoEco-House 1988 Parade Home 2004 Discovery House 2004 Water Conservation Research Home

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Sub Slab Void Material Finding the Leading Edge and holding it requires the integration of new materials, techniques, and training

Advanced Framing Techniques

Closed Cell Foam Insulation

Mechanical Systems Design belongs on Blueprints

Tankless Water Heaters

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Whole House Ventilation: From This… This…

Research Homes and Projects „

Anybody can do it once, How do you do it over and over, sustainability

The Eco House

…To This

“Transition of innovative systems from niche markets into broad markets requires bomb proof integration” integration”

The Parade Home

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Energy Star IAP Homes

The Discovery House

Training is Essential „

Detailed drawings and specs provide excellent training tools and can clarify complicated details

Employ Best Practices

McStain Detail Library

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Framing Details

How do you know that you and your team are getting it?

Wall Assembly

Testing Performance testing for air tightness the blower door

Test and Analyze findings!

Test Windows for Leaks The Economics

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McStain Neighborhoods

McStain Neighborhoods Energy Efficiency Row Home 1733 sq. ft.

Features

~Annual Savings

Advanced framing 2”x6” Windows w/ low emissivity argon-fill 92.1% direct vent furnace Water heater – sealed combustion

~Cost Premium

$36 $55 $88 $22

$545 $210 $900 $400

(converting to tankless water heaters-additional 45% savings)

Advanced insulation system Infiltration/advanced air sealing - (2.5 sq.in. /100 sq.ft.) Sealed conditioned Crawl space Engineered duct distribution system •All ducted system, inside conditioned space •Set back digital thermostat Fireplace w/ Electronic ignition Downsize furnace/AC Mechanical ventilation 3rd Party verification and energy commissioning

$89 $81 $19 $60

$975 $410 $110 $920

$72 $43 -$10 $0

$0 -$750 $300 $580

Total

$555

$4600

*compared to IECC 2003

, HERS=90.5

$236,204 Energy Efficient Home „ Length of Loan in Years 30 „ Interest Rate 6% Loan Amount 236,204 „ „ Annual Property Tax 1200 „ Annual Insurance 400 „ Monthly Principal + Interest 1416.16 „ Monthly Tax 100 Monthly Insurance 33.33 „ „ Total Payment 1,549.49 „ Monthly Utility Costs 78 „ Monthly total with utilities $1,627.49

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$230,000 home built to code (IECC 2003) Length of Loan in Years 30 Interest Rate 6% Loan Amount 230,000 Annual Property Tax 1200 Annual Insurance 400 Monthly Principal + Interest 1378.96 Monthly Tax 100 Monthly Insurance 33.33 Total Payment 1512.29 Monthly utility costs125.00 Monthly total with utilities $1637

Indoor Air Quality, Natural Resource Conservation, Durability Row Homes 1733 sq. ft.

Features

~Cost Premium

Exterior drainage plane Finger joint studs Engineered lumber products Cementitious siding material Recycled content decking Low VOC paint and finishes Recycled PET carpet Ductwork cleaning Sealed combustion appliances incl. fireplace Blown cellulose insulation High performance bath fans Sealed sump pit cover

$166 $0 $136 $0 $10 $332 $175 $300 $200 $0 $225 $60

Total:

$1604

Getting Your Feet Wet

Difference of $+9.51

Start at the Beginning. Integrated Design Involves All of the Players

CASE STUDY: THE DISCOVERY HOUSE

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DISCOVERY HOUSE OBJECTIVES „ „ „ „ „ „ „ „ „

Improved moisture management ReRe-evaluate framing techniques Reduce air infiltration Increase thermal properties Improve long term durability Improve indoor air quality Reduce utility bills Challenge contractors and McStain Improve the building process and share the information

An Increased Level of Energy Efficiency, Durability, and sustainability is Typically met Through a Variety of TriedTriedandand-True Technologies and Construction Practices Including:

Advanced Framing Techniques

Advanced Sealing Practices

Improved Insulation Systems

Careful Sealing of all HVAC Components

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Mechanical Ventilation: BUILD IT TIGHT, VENTILATE RIGHT

Thermal Envelope / Drainage Plane

No Thermal Break

Research of Alternative Renewable Energy Options „

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Solar Collectors

Which includes solar hot water heating used for: All domestic hot water needs Radiant heat basement slab Forced air combination system

System Configuration

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Water Conservation

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EVAPOTRANSPIRATION CONTROLLER

Indoor Water Conservation „

Water conserving fixtures Including: „ „ „

CONSTRUCTION WASTE Management Goal

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Why? 3.0 – 5.2 lbs/ft2 of total waste on the construction site About 1.7 lbs/s.f. is solely wood waste

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Managing waste better diverts it from landfills

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Promotes healthier communities

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It’ It’s part of our mission and it’ it’s the right thing to do!

Motion sensing faucet Dual flush toilet Structured plumbing with energy efficient circulation pump

DISCOVERY HOUSE SUMMARY

>50% Waste Diversion „

Soil Amendments Xeriscape landscape design Landscape Water Budget (6.5 gal/ft2 vs. typical 23.2 gal/ft2) Evapotranspiration Irrigation Controller

2nd American Lung “Health House” House” certification in Colorado Record Built Green Colorado score of 458 Points, built to Tier 3 specs Energy Star Rating of 94 At least 70% less energy consumption than typical Colorado home

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LESSONS LEARNED

Continued.. „

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Building America Program, 2004 test house Internal/external “learning laboratory” laboratory” Long term testing with NREL and Building America Programs as partners Replication of many items into production building

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As builders we are responsible to build the most sustainable buildings, communities and neighborhoods we are capable of There is always room for and ways to improve what we do and reduce our ecological footprint Improvement requires persistence, constant awareness of how we operate and a dedication to sharing our findings Provide education and training to our trade partners and customers Seek out and value their feedback

“When we build, let us think that we build forever. Let it not be for present delight nor for present use alone. Let it be such a work as our descendants will thank us for; and let us think, as we lay stone on stone, that a time is to come when those stones will be held sacred because our hands have touched them, and people will say, as they look upon the labor and wrought substance of them,

Question & Answer

See! This our parents did for us!” us!”

John Ruskin

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