NYC Can't Afford Not to "Go Green"

This week, Mayor Mike Bloomberg and Council Speaker Chris Quinn announced plans to introduce legislation that will require owners of 22,000 office and apartment buildings around the five boroughs to invest in building improvements that will reduce their energy consumption and carbon emissions. The announcement, which came on Earth Day, seems like a winning proposition in a city where 80 per cent of the greenhouse gas emissions that cause global warming and air pollution emanate from buildings and their tenants.

Coming on top of tax increases and a lousy economy, the threat of a new mandate has raised some concerns in the business community. Can we afford the cost of "greening" so many buildings in the current economic climate? The answer turns out to be a resounding yes! In fact, widespread compliance with green building laws will end up saving money for businesses and helping to launch New York's economic recovery.

Here is why:
• First, businesses and property owners will save more than $750 million a year by reducing what they currently spend for electricity and gas.
• Second, buildings that are energy efficient are far more attractive to commercial and residential tenants, who will enjoy the savings and the public benefits of reduced energy consumption.
• Finally, this investment will help establish a new industry in the city, providing thousands of jobs, training for skilled "green-collar" workers, and start-up business opportunities for New Yorkers who will create and install the products and carry out building improvements.

When it comes to new buildings, New York's premiere companies are already competing to have the greenest facilities in the world. They understand that this is the way to attract the best employees, reduce operating costs and to demonstrate corporate understanding of the most critical issues facing society. Time Warner, Bank of America, Hearst Corporation and Goldman Sachs are examples of leading companies that have invested in platinum standard energy efficient, iconic headquarters here.

Once adopted, the city's plan allows plenty of time for compliance, with major investments not required before 2013. There will be a pilot financing fund to get the program started. This will allow early movers to establish a track record so that, going forward, banks will make loans to finance improvements based on "pay back" from energy savings that are virtually guaranteed.

Energy costs in New York City exceed $15 billion a year, and retrofitting existing buildings is just one component of a larger program that will include more efficient gas power plants, upgraded electrical transmission facilities, and the widespread use of alternative energy sources to reduce dependence on fossil fuel.

The city has committed to upgrading its own public buildings to higher energy efficiency standards, but that will not be enough to make a difference in our environment or our energy consumption patterns. Most buildings are privately owned. Enlightened owners recognize that they can and must share in responsibility for dealing with the energy challenge facing New York. The plan announced this week will ensure that happens.

Comments

[MerrieWay]

There are approximately 100 items to qualify for a Green Commercial building. Filming "Live Green Dream”, Merrie Way will have a firsthand view of a 31,000 square foot Green building outside of Boulder, Colorado’; the only one of its kind in the area.
The tenants are eco-friendly from new technology inventors to a banjo maker who uses all natural wood, all showcasing the growing Green industry opportunity. Strict codes; including electrical, plumbing, building materials for sustainability, waste removal, air quality and scores of other considerations helped make the owners Deepika and Carlo Avanti’s dream building a reality come true.

[sc300nc]

Just a few comments:

There is already an industry out there that makes buildings energy efficient. To assume that this does not exist and all of these new jobs will be created is a mistake.

Compliance with green building laws can save money on energy, but you have to look at the investment required. Energy efficiency only makes sense when it has a reasonable payback.

Additional costs for business owners usually find their way to the consumer one way or another. If the law requires them to invest in technologies that have a long payback, the public will end up subsidizing those.

[DoriEden]

Commercial Property Owners need to know that there are new Federal Tax Benefits of up to $1.80 Per Square Foot available to them for making their buildings more energy-eff­icient!!!! Yes, it is true! The Energy Policy Act of 2005 is legislation that brought this tax benefit to property owners. It has been extended to 2013. My firm is Certified by the IRS to do this work and bring owners these tax benefits. To learn more, call me and I'll educate you and your CPA on the the ruling and the process. (727)- 942-9292. Dori Eden, Engineered Tax Services