Author: abrahamwien18

The future in automotive transportation is available now: The Growing Market for Electric Vehicles and ChargePoint Charging Stations

PJ PictureBy Paul Jones, Director, Emerald Skyline Corporation

plugged in electric vehiclesFive years after the first mass-market electric car hit the market, plug-in electric vehicles (EVs) have not met with the success expected, but they are pacing the rate of hybrid cars. Numerous challenges are being overcome in the evolution of the electric vehicle – not least of which is the automakers approach to the production and marketing of the cars, the range EVs travel on one charge and the availability of charging stations.

The new generation of electric vehicles began with the introduction of the first Tesla car in 2008 and began its embryonic growth in 2010 when mainstream electric cars like the Nissan LEAF and Chevy Volt went on sale. Throughout this time, plug-in car (PEV) buyers have repeatedly complained about poor consumer experiences. Last year, Consumer Reports published the results of a secret shopper study of 85 dealerships in four states, finding that staff at 35 of those dealerships (over 40%) attempted to steer buyers toward internal combustion engine (ICE) vehicles instead of the PEV in which they had expressed interest. Thirteen of those dealers tried to entirely discourage shoppers from buying an EV. Legacy profits from on-going maintenance of ICE vehicles, most of which are not required for an EV, is considered a major incentive for dealers to steer customers away from EVs. Increased demand from consumers will be the key driver in forcing manufacturers and dealers to change their perception of EVs from a necessary regulatory evil to a new product category.

Range anxiety is the fear that a vehicle has insufficient range to reach its destination and would thus strand the vehicle’s occupants. The term, primary used in reference to battery electric vehicles (BEVs), is considered to be one of the major barriers to large-scale adoption of EVs. The main strategies to alleviate range anxiety are the development of higher battery capacity (Tesla S now sports a model with a 265-mile range and other manufacturers are working to follow suit with over 200-mile range EVs), battery swapping technology, and the deployment of charging station infrastructure.

Despite the obstacles in creating a new market, the fleet of plug-in electric vehicles in the United States is the largest in the world with over 400,000 highway legal plug-in electric vehicles (EVs) sold in the country since 2008 when Tesla introduced its first car through 2015.EV-sales-growing

As of March of this year, there are 26 highway legal plug-in cars available in the American market from over a dozen manufacturers plus several models of electric motorcycles, utility vans and neighborhood electric vehicles (NEVs). The number of EV drivers has increased ten times in the past four years and EVs are expected to comprise over 8% of all car sales by 2020. New EV cars with increased range are being developed by many auto manufacturers – and some new entrants like Apple which has its first car, code name “Project Titan” planned for release in 2019.

However, consumers have been cautious about putting the car before the charging station. “Infrastructure for EVs is crucial to the adoption of use of electric cars. You’re not going to buy a car if you don’t know where and how to charge it,” says Erin Mellon, Director of Communications with ChargePoint, which operates the world’s largest EV charging network. The first place drivers need to be able to charge is at home. Being able to charge at work is second most important.”where-drivers-charging-chargepoint

Equally innovative but decidedly less exciting is what is happening with the growing infrastructure of EV charging stations, a stimulant for expansion of the market for plug-in electric vehicles. As of January 2016, the US had 12,200 charging stations across the country, led by California with nearly 3,000 stations. In terms of public charging points, there were 30,669 public outlets available across the country by the end of January 2016, again led by California with 9,086 charging points (29.6%).

The following excerpt from an article published last September by Jones Lang LaSalle (“JLL”), a premier international commercial real estate brokerage, property and investment management firm headquartered in Chicago, entitled “Charging into the future: The rise of electric cars,” reflects cutting edge planning and action – much like being an innovator at the turn of the 20th Century who invested in gasoline stations rather than livery stables:

Sean McNamara, General Manager for JLL Property Management, began looking at electric charging stations for an office building in San Francisco several years ago. “In the beginning of the discovery process, there was just not enough demand or infrastructure,” he says.

U.S. Secretary of Energy Steven Chu initiated the “Workplace Charging Challenge” in 2013 to increase the number of US employers offering EV charging stations – tenfold – by 2018.

“The proliferation of electric cars, has made these stations much more relevant over the past two years,” McNamara says.

Trophy and Class AA office buildings, such as the Georgia Pacific Center in Atlanta, were among the first to respond to Chu’s challenge. “Ownership and JLL are compelled largely because it’s the right thing to do for our environment. We are a LEED-certified building and our objective is to maintain the highest status possible,” explains Michael Strickland, a VP & Group Manager for JLL in Atlanta.

Strickland says that the Building’s 10 EV reserved parking spaces plus two public parking spaces equate to about one percent of the total parking spaces. “The Building has immediate access to public transport, which plays a role in how many building tenants drive and utilize the parking garage,” Strickland says. “It’s definitely a growing trend. But it’s not currently on par with having a sundry shop or a dry cleaner – yet….”

Today, McNamara is the General Manager of Southeast Financial Center, a Class A trophy office building in Miami. He oversees an 1,100-space parking structure with valet services and two EV charging stations. “In a Class A building, if the demand is there, the spaces will be added. Once the setup is done, sealing the delivery is even easier. Ultimately for landlords, it is not a matter of cost, it is a matter of appropriateness.”

Porsche Latin America, for example, a tenant in the Southeast Financial Center, installed two electric charging stations with special adapters, as a unique term of their lease. Then again, Porsche is not the average tenant. Earlier this month (September), the car manufacturer unveiled its first all-electric Mission E concept car at the Frankfurt Auto Show. It looks like a futuristic 911.

The Mission E, along with Audi’s e-Tron Quattro (scheduled to be launched in 2018), a hybrid SUV, would challenge Tesla’s Model S in the luxury category. Like Apple’s Project Titan, though, these models will take years to develop.

Until then, drivers can take their pick from available models such as the Nissan LEAF all-electric car, the Chevrolet Volt plug-in hybrid, the all-electric Tesla Model S and the Toyota Prius Plug-in hybrid, and a growing public infrastructure in which to park and charge them.

For buildings being designed and built, or undergoing a major renovation, to achieve LEED certification under the 2009 rating system, providing one of the following earns up to three points in the SS Credit 4.3, Alternative Transportation for Low-emitting & Fuel-efficient (LEFE) vehicles category:

  1. Preferred parking (closed spot or price discount of ≥ 20%) for LEFE vehicles for 5% of site’s Parking Capacity (parking discount must be made available to all who drive LEFE vehicles and must be available for a minimum of two (2) years) OR
  2. Alternative refueling stations for 3% of site’s parking capacity OR
  3. LEFE vehicle and preferred parking for 3% of FTE OR
  4. One (1) shared LEFE be provided for 3% of FTEs with a minimum of one per 267 FTE for at least two (2) years (minimum one LEFE required)

Further, projects may be awarded one point for EP for instituting a transportation management plan that demonstrates a quantifiable reduction in the auto use through implementation of multiple options.

Even at this stage in the development of the market for EVs, which represents the future of automobiles, an EV driver plugs into a ChargePoint station every five seconds, saving over 12.5 million gallons of gas and over 41 million kilograms of greenhouse gas emissions.

Today, Emerald Skyline is proud to announce that it has partnered with ChargePoint to provide for a greener tomorrow – for an emerald skyline!

“As a sustainability and resiliency consulting and LEED project management firm, this partnership allows us the latest technologies and largest and most open network available to provide our clients,” reports Abraham Wien, LEED AP O+M, Director of Architecture & Environmental Design for Emerald Skyline. “We are always looking for ways to provide superior products and services to meet our clients sustainability and resiliency needs.

With almost 28,000 charging stations, ChargePoint is the world’s largest network of electric vehicle (EV) charging stations in the US, Europe and Australia. ChargePoint stations set the industry standard for functionality and aesthetics and their innovative, cloud-based software gives station owners flexibility and control of charging operations. Stations on the ChargePoint network are independently owned businesses, which set their own pricing, access settings and much more.

demand-for-charging-stationsBeyond the workplace, EV charging stations are a distinctive and value-add amenity for hotels, restaurants, shopping centers and entertainment facilities – and a growing necessity for communities serving an ever-increasing demographic demanding an alternative to fossil-fuel driven vehicles.

An electric car will have to be able to travel long distances for EVs to break into the mass market. Like few other parts of the plug-in ecosystem, this has been demonstrated by Tesla Motors, which has built out its network of sites not only in the US, but in all their major markets. An 80% recharge that provides 200 miles or more in less than an hour enables Tesla owners to travel coast-to-coast with recharging breaks every three hours. And, despite the reticence of many in the industry about the prospect of being stationary for a half hour to hour break every three hours, Tesla drivers seem entirely satisfied with the network, to the point that congestion is an occasional problem while range anxiety is not.

The availability of a charging station will attract that additional guest or customer who will pay extra for the charge (yes, EV-charging stations can be an additional source of revenue by monetizing an EV-enabled parking spot). It will attract new customers to your business and encourage loyalty from a growing customer base of EV drivers.

Emerald Skyline Corporation will be providing ChargePoint EV Charging Station services and installations for corporate, municipality, and private entities. Together, we’re transforming the energy industry by developing intelligent energy management solutions to help people and businesses shift away from fossil fuels. impact-chargepoint-drivers

ChargePoint stations set the industry standard for functionality and aesthetics and their innovative, cloud-based software gives station owners flexibility and control of charging operations. Stations on the ChargePoint network are independently owned-businesses which set their own pricing, access settings and much more.

To find out more information about the installation of a ChargePoint Electric Vehicle Charging Station at your home, office building, shopping center, hotel or transportation hub and join the EV revolution for a greener tomorrow, please contact us at 305.424.8704 or go to www.emeraldskyline.com

Segregating the cost components of a “real” property allows for optimal cost recovery to increase after tax income

PJ Pictureby Paul L. Jones, CPA, Director, Emerald Skyline Corporation

In the fourth quarter of 1985, Philip Morris Inc. agreed to buy General Foods for an estimated $5.6 billion. At the time, it was the largest food company acquisition in history. Pursuant to this acquisition, Philip Morris had to allocate the purchase price among cash and cash equivalents, real estate, tangible personal property, identifiable intangible assets and, finally, goodwill.

In conjunction with this cost allocation, Kenneth Leventhal & Company, a CPA firm that specialized in real estate, was hired to value the property, plant and equipment and segregate them into real, personal and land improvement assets to establish basis for its tax returns. I was a leader on the team that completed the study and valuation. The project involved hundreds of properties on six continents, the expertise of an untold number of real estate, engineering and accounting professionals – and over a year – to complete.

The reason we segregated the personal property and land improvement assets was to shorten, to the extent possible, the time required, and maximize the deductions from taxable income, to recover the cost of the assets through depreciation resulting in reduced income tax obligations. Accordingly, the primary goal of a cost segregation study is to identify all construction-related costs that can be depreciated over a shorter tax life (typically 5, 7 and 15 years) than the building (39 years for non-residential real property). Personal property assets, consisting of non-structural elements, exterior land improvements and indirect construction costs which are found in a cost segregation study generally include items that are affixed to the building but do not relate to the overall operation and maintenance of the building.

The investment strategy for every rental residential apartment complex and commercial building, including office buildings, shopping centers, industrial facilities, hotels, restaurants, entertainment complexes and all other commercial properties that are being acquired, constructed and/or sustainably renovated to be “Green” should include accelerated depreciation realized from a cost segregation study.

cost-segregationBy increasing the depreciation deduction, current income taxes are reduced and after-tax cash flow increased during the initial years of ownership or completion of substantial sustainable renovations – when their net present value and positive impact on the investor’s internal rate of return is the greatest.

A cost segregation study, in a nutshell, is the process of identifying any personal property and land improvement assets that are grouped with real property assets, and accounting for them separately, in particular, for Federal income tax purposes. The determination of what property components qualify for shorter depreciable lives as personal property is ultimately based on asset-specific facts and circumstances. However, consultants rely heavily on precedents existing in both case law and IRS guidance.

The law, rules and procedures relied upon in cost segregation studies have been around since the enactment of the Investment Tax Credit (ITC) in 1962 which established the legal rationale used to distinguish personal from real property for purposes of the ITC and provides the framework for the same classification process in cost segregation studies.

While the ITC was repealed through the Tax Reform Act of 1986, a landmark tax court decision in the case of Hospital Corporation of America (“HCA”) vs. Commissioner, 109 TC 21 issued in 1997 upheld the application of cost segregation for differentiating the depreciable basis of real, personal and land improvement assets. The HCA case is the seminal case for cost segregation studies and the IRS has agreed that a taxpayer can use a cost segregation study to segregate building costs. Critical to the Tax Court’s analysis was that in formulating accelerated depreciation methods, Congress intended to distinguish between components that constitute IRC section 1250 class property (real property) and property items that constitute section 1245 class property (tangible personal property). This distinction opened the doors to cost segregation.

Armed with this victory, taxpayers have increasingly begun to use cost segregation to their advantage. The IRS reluctantly agreed that cost segregation does not constitute component depreciation (action on decision (AOD) 1999-008). Moreover, cost segregation recently was featured in temporary regulations issued by the Treasury Department (regulations section 1.446-1T). In a chief counsel advisory (CCA), however, the IRS warned taxpayers that an “accurate cost segregation study may not be based on non-contemporaneous records, reconstructed data or taxpayers’ estimates or assumptions that have no supporting records” (CCA 199921045).

Real property eligible for cost segregation includes buildings that have been purchased, constructed, expanded or remodeled since 1987. A cost segregation study is typically cost-effective for buildings purchased or remodeled at a cost greater than $750,000. These studies are most efficient for new buildings recently constructed, but they can also uncover retroactive tax deductions for older buildings, which can generate significant short benefits due to “catch-up” depreciation.

Property owners should consider using a cost segregation study if they:

  • Acquired property in the last 15 years
  • Recently completed or started a construction project
  • Inherited property from an estate and received a stepped-up basis
  • Purchased a partnership share
  • Expect to pay income taxes
  • Plan on holding the property for at least five years

Examples of assets that may qualify to be reclassified as Section 1245 property (tangible personal property) which have shorter depreciable lives include:

  • Land improvements (drainage and irrigation systems, fencing, outdoor lighting, landscaping, parking lots and walkways, etc.);
  • Ornamental fixtures;
  • Wall and floor coverings;
  • Security systems;
  • Cabinets and millwork;
  • Data and communication cabling;
  • Decorative lighting;
  • Window treatments;
  • Production machinery;
  • Electrical and plumbing service to specific equipment;
  • Energy management systems;
  • Equipment, machinery and equipment that meet the “sole justification test” (i.e., building system components the sole justification for the installation of which is the fact that such equipment….are essential for the operation of other machinery or the processing of materials or used in connection with research of experimentation); and
  • Moveable wall partitions, catwalks and mezzanines

According to IRS Publication 544: “The fact that the structure is specially designed to withstand the stress and other demands of the property and cannot be used economically for other purposes indicates it is closely related to the use of the property it houses. Structures such as oil and gas storage tanks, grain storage bins, silos, fractionating towers, blast furnaces, basic oxygen furnaces, coke ovens, brick kilns, and coal tipples are not treated as buildings, but as section 1245 property.”

In distinguishing between a building’s tangible personal property and structural components, Jay Soled and Charles Falk in a 8/1/2004 article entitled “Cost Segregation Applied” in the Journal of Accountancy, “CPAs, engineers and consultants will find the courts to be a final source of guidance. In Whiteco Industries, Inc. v. Commissioner (65 TC 664 (1975)), for example, the Tax Court set forth the following six questions that can use to determine whether property is inherently permanent and thus a structural component excluded from the definition of tangible personal property:

  • Can the property be moved? Has it been moved? (For example, a shed with a concrete floor vs. a shed with a wooden floor.)
  • How difficult is removal of the property, and how time-consuming is it? (For example, a wine cellar vs. a prefabricated photo-processing lab.)
  • Is the property designed or constructed to remain permanently in place? (For example, a wooden barn vs. a wire chicken coop.)
  • Are there circumstances that tend to show the expected or intended length of affixation—or that the property may or will have to be moved? (For example, permanent concrete pilings vs. floating docks that can be removed in the winter.)
  • How much damage will the property sustain upon its removal? (For example, a steel-encased bank vault vs. an easily removable lighting system attached by bolts.)
  • How is the property affixed to the land? (For example, permanently glued bathroom tile vs. removable billboard.)

Even with ample regulatory, legislative and judicial guidance, making the distinction between tangible personal property and a building’s structural components remains a challenge for CPAs. No bright-line test exists. What is fortunate, however, is that many of the factual issues involving properties of different sorts have been litigated, and their outcomes illuminate the direction a court confronted with similar facts is likely to take.”

The primary property recovery periods are:

  • Buildings = 27.5 years for residential and 39 years for commercial
  • Land Improvements = 15 years
  • Furniture, fixtures & equipment = 7 years
  • FF&E, Retail & service = 5 years
  • Information systems = 5 years

Cost segregation consultants generally employ one of two methods, or a combination of both, that have approved by the IRS:

The first approach is to obtain and examine actual cost data records and construction documents in conjunction with a site visit to identify assets for potential reclassification. This approach is typically used when the property has been recently constructed and documents are readily available. The consultant assigns costs to each component based on any information provided, analysis of the documents and site visit.

The second approach, applicable when the original construction documentation is not available, is typically performed when a study is performed in conjunction with the purchase of the property. This alternative is also performed when the cost segregation study is conducted several years after initial construction. In applying this approach, an engineer or consultant will analyze architectural drawings, mechanical and electrical plans and other blueprints to segregate the structural and general building electrical and mechanical components from those linked to personal property. Using standard construction cost estimating tools, the property is “reverse-engineered” into its separate components. The consultant will also allocate “soft costs,” such as architect and engineering fees, to all components of the building. Total actual property costs are then allocated to the components on a proportional basis.

The information and documents typically required for a cost segregation study include:

  • legal description of the property
  • Date placed in service
  • Building and land area
  • Survey
  • Architectural and building plans
  • AIA documents 702 & 703
  • Other construction documents and accounting records
  • Depreciation schedules
  • Fixed asset listing
  • Construction loan documents, if available
  • Settlement statement
  • Appraisal

The consultant provides a self-contained cost segregation report, certified by the study’s authors, that will satisfy IRS requirements.

The benefits can be significant. BKD LLP, CPAs calculates that “Each $100,000 in assets reclassified from a 39-year recovery period to a five-year recovery period results in approximately $16,000 in net-present-value savings, assuming a 5% discount rate and a 35% marginal tax rate.

By reclassifying an asset from building (1250) to personal property (1245) property, the magnitude of an additional allowance in the first year can be enormous. For example, a shift of $1 million from 39-year property to 5-year property can augment first-year depreciation deductions by a whopping $575,000 ($25,000 vs. $600,000). Note: The application of the alternative minimum tax may reduce some of the tax savings associated with cost segregation.

Cost segregation studies should be performed by consulting firms with expertise in engineering, construction, tax and accounting. The IRS’ underlying assumption in determining what constitutes a quality study is that the study is performed by “personnel competent in the design, construction, auditing, and estimating procedures relating to building construction.”

Emerald Skyline Corporation, whose principals include real estate, sustainability, resiliency, architecture and accounting professionals is uniquely qualified to provide cost segregation advisory services to building owners, investors, managers and accountants in conjunction with your sustainability and resiliency project. Each cost-segregation study prepared by Emerald Skyline includes an identification of any available Green Building Tax incentives. Often overlooked, these valuable tax credits can amount up to 30% of qualified expenditures and increase the tax benefits of a cost segregation study.

Water Conservation Tips from National Geographic

In honor of Earth Day, we wanted to share some water conservation tips that make it easy for everyone to do their part.

Toilets, Taps, Showers, Laundry, and Dishes

  • 1994 was the year that federally mandated low-flow showerheads, faucets, and toilets started to appear on the scene in significant numbers.
  • On average, 10 gallons per day of your water footprint (or 14% of your indoor use) is lost to leaks. Short of installing new water-efficient fixtures, one of the easiest, most effective ways to cut your footprint is by repairing leaky faucets and toilets.
  • If you use a low-flow showerhead, you can save 15 gallons of water during a 10-minute shower.
  • Every time you shave minutes off your use of hot water, you also save energy and keep dollars in your pocket.
  • It takes about 70 gallons of water to fill a bathtub, so showers are generally the more water-efficient way to bathe.
  • All of those flushes can add up to nearly 20 gallons a day down the toilet. If you still have a standard toilet, which uses close to 3.5 gallons a flush, you can save by retrofitting or filling your tank with something that will displace some of that water, such as a brick.
  • Most front-loading machines are energy- and water-efficient, using just over 20 gallons a load, while most top-loading machines, unless they are energy-efficient, use 40 gallons per load.
  • Nearly 22% of indoor home water use comes from doing laundry. Save water by making sure to adjust the settings on your machine to the proper load size.
  • Dishwashing is a relatively small part of your water footprint—less than 2% of indoor use—but there are always ways to conserve. Using a machine is actually more water efficient than hand washing, especially if you run full loads.
  • Energy Star dishwashers use about 4 gallons of water per load, and even standard machines use only about 6 gallons. Hand washing generally uses about 20 gallons of water each time.

Yards and Pools

  • Nearly 60% of a person’s household water footprint can go toward lawn and garden maintenance.
  • Climate counts—where you live plays a role in how much water you use, especially when it comes to tending to a yard.
  • The average pool takes 22,000 gallons of water to fill, and if you don’t cover it, hundreds of gallons of water per month can be lost due to evaporation.

Diet

  • The water it takes to produce the average American diet alone—approximately 1,000 gallons per person per day—is more than the global average water footprint of 900 gallons per person per day for diet, household use, transportation, energy, and the consumption of material goods.
  • That quarter pounder is worth more than 30 average American showers. One of the easiest ways to slim your water footprint is to eat less meat and dairy. Another way is to choose grass-fed, rather than grain-fed, since it can take a lot of water to grow corn and other feed crops.
  • A serving of poultry costs about 90 gallons of water to produce. There are also water costs embedded in the transportation of food (gasoline costs water to make). So, consider how far your food has to travel, and buy local to cut your water footprint.
  • Pork costs water to produce, and traditional pork production—to make your sausage, bacon, and chops—has also been the cause of some water pollution, as pig waste runs into local water sources.
  • On average, a vegan, a person who doesn’t eat meat or dairy, indirectly consumes nearly 600 gallons of water per day lessthan a person who eats the average American diet.
  • A cup of coffee takes 55 gallons of water to make, with most of that H2O used to grow the coffee beans.

Electricity, Fuel Economy, and Airline Travel

  • The water footprint of your per-day electricity use is based on state averages. If you use alternative energies such as wind and solar, your footprint could be less. (The use of biofuels, however, if they are heavily irrigated, could be another story.) You would also get points, or a footprint reduction, for using energy-star appliances and taking other energy-efficiency measures.
  • Washing a car uses about 150 gallons of water, so by washing less frequently you can cut back your water use.
  • A gallon of gasoline takes nearly 13 gallons of water to produce. Combine your errands, car pool to work, or take public transportation to reduce both your energy and water use.
  • Flying from Los Angeles to San Francisco, about 700 miles round-trip, could cost you more than 9,000 gallons of water, or enough for almost 2,000 average dishwasher loads.
  • A cross-country airplane trip (about 6,000 miles) could be worth more than 1,700 standard toilet flushes.
  • Traveling from Chicago to Istanbul is just about 10,000 miles round trip, costing enough water to run electricity in the average American home for one person for more than five years.

Industry—Apparel, Home Furnishings, Electronics, and Paper

  • According to recent reports, nearly 5% of all U.S. water withdrawals are used to fuel industry and the production of many of the material goods we stock up on weekly, monthly, and yearly.
  • It takes about 100 gallons of water to grow and process a single pound of cotton, and the average American goes through about 35 pounds of new cotton material each year. Do you really need that additional T-shirt?
  • One of the best ways to conserve water is to buy recycled goods, and to recycle your stuff when you’re done with it. Or, stick to buying only what you really need.
  • The water required to create your laptop could wash nearly 70 loads of laundry in a standard machine.
  • Recycling a pound of paper, less than the weight of your average newspaper, saves about 3.5 gallons of water. Buying recycled paper products saves water too, as it takes about six gallons of water to produce a dollar worth of paper.

 

National Geographic
View original article here

U.S. Green Building Council’s New Report Reveals Hospitality Industry Poised for Tremendous Growth in Green Building

U.S. Green Building Council’s New Report Reveals Hospitality Industry Poised for Tremendous Growth in Green Building

LEED in Motion: Hospitality report highlights hotel brands across the world incorporating LEED and other sustainability practices

Washington, D.C. — (Feb. 18, 2016) — Today, the U.S. Green Building Council (USGBC) released its LEED in Motion: Hospitality report, which showcases tremendous industry growth in green building and defines the scale up opportunities for the hospitality sector. More than 109 million square feet of hotel space is currently LEED certified, and the report highlights some of the most impressive LEED-certified hotels throughout the world.

“Across industries we are seeing an increase in consumer demand toward sustainability practices, and no industry is better poised to meet these demands than hospitality. This growing sector is rapidly adopting green buildings because owners and developers want to enhance their triple bottom line – people, planet and profit,” said Rick Fedrizzi, CEO and founding chair, USGBC. “LEED is a transformative tool that positively impacts the quality of our built space by creating a healthier, more sustainable environment that saves money and resources.”

Hotels consume natural resources at an extraordinarily high rate as they are occupied 24 hours a day, seven days a week. With more than five billion square feet of space in the U.S. alone, there is an enormous opportunity for the industry to transform the impact of the built environment. A

LEED (Leadership in Energy & Environmental Design), the world’s most widely used green building rating program, has a growing presence in the hospitality industry – and the number of LEED-certified buildings is expected to continue at a strong pace. Currently, there are more than 1,400 hotels participating in LEED representing 638.7 million square feet. Of that, there are more than 300 LEED-certified hotels comprising nearly 109.2 million square feet of space.

According to a recent study by McGraw Hill Construction, green construction in the hospitality sector has increased by 50 percent from 2011-2013 and now represents 25 percent of all new construction in the sector today. USGBC’s recent Green Building Economic Impact Study also found that across industries, green construction is outpacing that of traditional construction and is poised to create more than 3.3 million U.S. jobs and $190.3 billion in labor earnings by 2018.

LED Lighting: Both Art and Science

JulieBy Julie Lundin, Founder,
Director of LEED Process Management for Emerald Skyline Corporation

As a registered commercial interior designer and as a LEED AP (Leadership in Energy and Environmental Design Accredited Professional), I balance the aesthetics of lighting, the “art” and the technical knowledge the “science” when finding solutions for our clients project needs. Lighting is for people, so there must be an understanding of the visual quality users need for health, safety, productivity and enjoyment. Combining the needs of people, with the aesthetics desired and the rapidly changing technical knowledge are key when specifying lighting for any project. In addition, today’s buildings also require the need to consider the economics, sustainability and impact on the environment when making our decisions.

“More and more, so it seems to me, light is the beautifier of the building.”
Frank Lloyd Wright – Architect

Whether you are an individual homeowner or a business involved in commercial spaces you have probably noticed the rapidly evolving lighting product market. The standard incandescent bulbs that Edison invented and we all used for years are no longer available. They are being phased out by the federal government. Next, CFL’s (compact fluorescent lights) became the go to option for customers seeking an inexpensive, energy efficient replacement for the standard incandescent bulb. However, CFL’s have had issues with the quality of light which was perceived as harsh by users, they were slow to warm up and difficult to dim, and contain mercury. CFL’s are now also being phased out. General Electric announced earlier this year that they will stop making and selling these bulbs in the U.S. by the end of 2016. “Now is the right time to transition from CFL to LED,” said John Strainic, chief operating officer of consumer and conventional lighting at GE Lighting. Per Mr. Stranic, retailers are also moving away from CFL’s which will have a harder time qualifying for the Energy Star rating under regulations proposed for next year.

Initially LED’s were expensive but gained customer support because they offer better light quality. As with many emerging technical and consumer products, prices for LED bulbs have dropped steadily as manufacturing has increased and the products have been embraced in the mainstream. Manufacturers and retailers have also used coupons and rebates to further bring down the cost. Even as the prices are dropping the technology of LED’s has improved over the years.

There is no denying the energy efficiency of LED’s but other performance factors should be taken into consideration when deciding which product will work best for the intended use.

LED Glossary and Performance Factors

Efficacy – the rating for lumen output per watt, an easy measurable metric that compares the energy consumption and output of different light sources. Per Eric Lind of Lutron Electronics, the efficacy rating is starting to lose its relevance in favor of overall performance measurements. “If I’m trying to evaluate how much it costs to operate a building, lumens per watt is a good measurement,” says Lind. “The challenge is that buildings are there for a purpose and the color and quality of light have an impact on the people inside”.

Color Rendering Index – CRI is a measurement of a light sources accuracy in rendering different colors when compared to a reference light source with the same correlated color temperature. The closer a light source is to a score of 100, the better its color rendering. The higher the CRI, the better the visual perception of colors. Energy Star requires eligible fixtures to use lamps with a CRI above 80.

Lumens – Lumens are the perceived brightness of a lamp (bulb) and one part of a light sources distinct character.

Color Temperature – The other part of a light sources character, color temperature is a description of the warmth or coolness of a light source. Color temperature is measured on the Kelvin scale and is not the ambient hot/cold temperature of our surroundings. Confusingly the Kelvin scale goes backwards, the higher the color temperature, the cooler the light gets and the lower the color temperature, the warmer the light gets.

An example of color temperature application in a commercial building interior, a warmer (i.e. lower color temperature) light is often used in public areas to promote relaxation, while a cooler (higher color temperature) light is used to enhance concentration in offices. Lighting is one of the most important items that should be addressed in every space. An improperly lighted space can cause accidents, eyestrain, impact the occupant mood, and even how people look.

Color temperature and lumens are the new specifications that people need to know when choosing LED lamps.

Watts – Watts are what we used to measure brightness in the use of incandescent and CFL’s. With LED’s, lumens are the indicator of indicator of brightness.

Controllability – the option of changing light levels and color temperature to suit individual needs and important to user satisfaction.

color temperature kelvin scale

LED Lighting Retrofits – The Low Hanging Fruit

In commercial facilities, lighting efficiency improvement is the simplest energy saving strategy, “the low hanging fruit”. Lights consume from 15 to 40 percent of the annual energy use for most buildings and are usually less expensive to change than other systems. Often there is more than energy savings in most lighting improvement projects:

  • Lower Cooling Costs – Lights generate waste heat, improved lighting efficiency can lower your air conditioning costs.
  • Demand Savings – Reducing the amount of electricity used for lighting may reduce peak demand billing costs.
  • Increased Occupant Productivity – Better lighting may permit faster work patterns with fewer errors and increased productivity.
  • Reduced Absenteeism – Improper lighting can cause glare which results in fatigue, headaches and absenteeism.
  • Increase Safety and Security – Proper light levels reduce the possibility of as well as improve the safety of the employees and vehicle traffic. LED retrofits of parking garages and parking lots are important for employee safety and security.
  • Lower Maintenance Costs – LED light sources have a longer lamp life than incandescent and CFL’s resulting in lower lamp replacements and labor costs.

Lighting is one of the most important items that should be addressed in any building. It has the capability to impact the occupants, the cost of operations and the environment. The Emerald Skyline team can assist you with your LED lighting retrofit project resulting in energy savings, lower cooling costs and most importantly occupant health, safety and productivity. Lighting has the ability to positively transform any space, a true blend of art and science.

 

G.E. to Phase out CFL Bulbs

http://www.nytimes.com/2016/02/02/business/energy-environment/ge-to-phase-out-cfl-light-bulbs.html?_r=0

Long Lasting LED Bulbs Now 90% Cheaper

http://time.com/money/3831356/cheap-led-lightbulb-philips/

Industrial Assessment Center – Energy Web Tool

http://iac.missouri.edu/webtool/TaskDocuments/lighting/lighting.html

The Price of Water is Rising: Time to start conserving to improve the bottom-line

PJ Pictureby Paul L. Jones, CPA, LEED Green Associate
Emerald Skyline CorporationPRICE of H2O

America’s water treatment and supply networks were built in the decade following World War II – 60 to 70 years ago. The results of those investments fueled a generation of widespread economic growth, prosperity and improvement in public health. However, the thousands of miles of distribution pipes beneath city streets, the lengthy water transport and treatment infrastructure are now cracked and brittle. The bill to repair and renew America’s long-neglected water systems are now coming due – and it will not be cheap.

Distribution pipes, which run for thousands of miles beneath a single city, have aged beyond their useful life and crack open daily. Some assessments estimate the national cost of repairing and replacing old pipes at more than US 1 Trillion over the next 20 years. In addition, new treatment technologies are need to meet the Safe Drinking Water Act and Clean Water Act requirements, and municipal water companies must continue to pay on their debts.

Add to the needed infrastructure costs, the impact of droughts and sea level rise which are affecting the three most populous states in the country (California, Texas and Florida) and water managers are seeking ways to reduce consumption – with price increases as one way to encourage conservation. The EPA has identified at least 36 states that have experienced, or can anticipate, some type of local, regional or statewide water shortage which will have a significant impact on both consumers and commercial facilities.

According to an annual pricing survey by Circle of Blue, the price of water rose six percent in 30 major US cities last year and it has risen 41% since 2010. Brett Walton, Circle of Blue, 4/22/2015

“In Chicago and neighboring communities that depend on the City for their water supply, a 25% rate increase took effect on 1/1/2012. The rate went up again in 2013 by 15%, and will increase again by 15% in 2014. That’s a 55% increase over a 3-year period. Even though American municipalities have traditionally underpriced water, a 55% increase in such a short amount of time is an indication that a serious problem exists – with no resolution in sight.” Klaus Reichardt, Environmental Leader, 10/14/2013

Further, more than 40 US cities are required to make massive investments in wastewater treatment capacity which are driving sewer rate increases as Federal grants that funded the current generation of sewage treatment facilities are no longer available so municipal utility companies must finance these projects on their own. In other words, they will be increasing sewer fees in order to keep our water clean.

“We expect water rates to continue to grow above inflation for some time. We don’t see an end in sight.” Andrew Ward, director of US Public Finance, Fitch Ratings.

It is clear that the cost of water and wastewater services are going to continue to increase at rates well above the consumer price index.

Commercial and institutional buildings use a large portion of municipally-supplied water in the United States. In fact, the EPA estimates that facilities such as schools, hotels, retail stores, office buildings and hospitals account for up to 17% of publicly-supplied and 18% of energy use. The three largest uses of water in office buildings are restrooms, heating and cooling, and landscaping.

END -- -- USESAccordingly, implementing water-efficiency measures, while resulting in immediate savings will also serve to reduce the financial impact of future rate increases – a hedge against inflation, if you will. According to the EPA, which has established Water Sense at Work: Best Management Practices for Commercial and Institutional Facilities, “the benefits of implementing water-efficiency measures, in and around office buildings can include reducing operating expenses as well as meeting sustainability goals. In addition to water savings, facilities will see a decrease in energy costs because of the significant amount of energy associated with heating water.

NOTE: Water efficiency refers to long-term reduction in water consumption that is not in response to any current water shortages. Water-efficient systems enable a facility to meet users’ needs while using less water than conventional equivalents.

Water consumption in commercial and institutional buildings is dependent on many factors: The age of the building, the local climate, the use of the facility, the existence of a kitchen facility or restaurant amenity and the type and age of the HVAC system. However, in virtually all venues, the restrooms are the primary consumer of water. Accordingly, the best place for building owners and managers to start is the restroom.

Before introducing some water conservation strategies, the greatest impediment to achieving meaningful water savings in office buildings is the common disconnect between the accountant who pays the bills, the building owner, the tenants, the building manager or engineer and the various third-party contractors that maintain the facility and equipment. In multi-use or multi-tenanted properties, water saving potential is frequently great, but successful implementation of changes always requires a cooperative effort from all of the stakeholders.

Like an energy audit that identifies the main users of energy and benchmarks use, the best way to identify water conservation measures is to establish a water savings plan that benchmarks the ways water is consumed and prioritize them. Water conservation will vary in a commercial setting depending on the building type and use. While hospitals and office buildings require a large water volume for mechanical systems, hotels and restaurants require high usage in laundry and food service applications, respectively.

Determining the applications that have the greatest water consumption is critical to prioritize the overall goals and budget. One way to do this is by installing sub-meters in various facility locations (such as restrooms, cafeteria and food service areas, different floors or blocks of floors, etc.) and then monitoring water consumption in each area. This can provide insight into where water is being used and can also point out inconsistencies in water consumption—information that can sometimes result in significant savings.

For instance, a facility might find that one block of floors uses far less water than another block. Is this because there are fewer people on those floors? Or are there plumbing leaks or older fixtures in the block using more water? Tracking water use allows building engineers to move quickly to identify problem areas within a building’s water systems.

Once the systems and their water usage have been determined, a water savings plan can be developed. A water savings plan will inventory the systems in-place, identify water-efficient alternatives and estimates of the costs and benefits of each component of the plan. The benefits of water efficiency efforts can be measured by calculating the difference between what the building owners/managers previously spent on water and related operating costs and what they spend after water efficiency programs are implemented. The return on investment of new equipment, fixtures, and other water-related items can also be calculated over the lifetime of a water efficiency project, and includes such things as reduced maintenance, water, sewer, and related energy costs.

Typical Water Efficiency Plan Components

Below is a quick summary of how a typical commercial facility can use water more efficiently:

Toilets. Replace older toilets with fixtures that meet or exceed Uniform Plumbing Code (UPC) and International Plumbing Code (IPC) requirements: 1.6 gallons of water per flush. Some newer toilets, including high-efficiency and dual-flush models, use even less water than that. Facility System Solutions, in a 7/14/2014 article entitled “Mandated high-efficiency toilets pay off” reports that since being required by the Energy Policy Act of 1992 “low flow toilets have saved enough water to fulfill the needs of Los Angeles, Chicago and New York for two decades.” Further water reductions are achieved through dual-flush or high-efficiency EPA WaterSense-labeled toilets.

Faucets. Replace existing faucets or install restrictive aerators to reduce water use from approximately 2.2 gallons per minute to 0.5 gallons per minute.

Urinals. Again, replace older fixtures with newer models that use less water (one gallon of water per flush or less). However, facilities can achieve far greater savings by installing waterless urinal systems (unfortunately, many building codes do not allow these fixtures).  Further, according to a study by the Rand Corporation, waterless urinals often provide a significant savings due to their lower annual maintenance costs, in addition to the benefits incurred from reduced water use.

Alternative water sources. Some facilities, and even some legal jurisdictions, have installed or are planning to install “greywater” distribution systems. Grey water is tap water soiled by use in washing machines, tubs, showers, and bathroom sinks that is not sanitary, but it’s also not toxic and generally disease-free. Grey water reclamation is the process that capitalizes on the water’s potential to be reused instead of simply piping it into a sewage system. While this water is considered non-potable (that is, not for human consumption), it can usually be used for toilets and traditional urinals, as well as for plant/landscape irrigation in some cases.

Another “alternative” water source is rainwater which can be harvested where capturing and storing rainwater is an easy and effective way to conserve water through a commercially viable payback period. Selecting a rainwater harvesting system is dependent on the collection area of the commercial site and the intensity of rainfall in the particular region of the country. Once the availability and demand are calculated, the system should be designed to meet the daily demand throughout the dry season.

Cooling tower water recovery is another “alternative” source of water. Cooling towers remove heat from a building’s air conditioning system by evaporating some of the condenser water. Since all cooling towers continually lose water through evaporation, drift, and blowdown, they can consume a significant percentage of a building’s total water usage. Towers that are in good condition, operated properly, and well maintained allow chillers to operate at peak efficiency. Some cooling towers can use recycled water like stormwater or grey water if the concentration ratio is maintained conservatively low. Similarly, blowdown water may be reused elsewhere on-site.

Leak Detection. In most cases, leaky restroom fixtures and pipes are only fixed when they become excessive or cause problems, such as water pooling on floors. Leak detection systems in critical or remote locations tied to a BAS to notify maintenance staff of water leaks ensure a quick response before building walls, ceilings, and equipment are permanently damaged. A formal leak detection program—in which building engineers regularly check all fixtures and major plumbing connections on a set schedule — can save literally thousands of gallons of water annually.

And, finally, educate the users. Water conservation is not only about innovation and good design practices, but also about building an understanding among water consumers to work together to achieve a greener and more energy-efficient environment. It is important to educate users about water scarcity issues and the impact of water conservation practices through signage and awareness campaigns at the point of use.

Conclusion

Usually overshadowed by high-efficiency HVAC systems or LED lighting retrofits in commercial building modernization and sustainability programs, water is increasingly becoming a scarce commodity and implementing a water conservation plan may just be the low hanging fruit of sustainable benefits. From the invention of a water-leak detection system to implementing sustainable retrofits, the Emerald Skyline team can provide you with the tools and guidance you need to save money by saving water.

The Changing Face of Waste Management and the Shift Toward a Circular Economy

KG ResizeBy: Kendall Gillen, LEED Process Management,
Emerald Skyline Corporation

The concept of waste is well known in today’s linear consumerist society. Once a material or substance is no longer considered useful, it is discarded and left in the hands of waste management. The conversion of waste materials into reusable materials helps to reduce the amount of waste and the consumption of raw materials, otherwise known as recycling. Since both of these concepts have been around for most of human history, and we are still producing alarming amounts of waste, 251 million tons of which only 34.5% is recycled in the U.S. according to the EPA, it is clear that responsible management of waste is essential to sustainable building.

Designing for responsible waste management and sustainable building requires a plan so that it can be carried through from construction/renovation to operations and maintenance. The LEED credit(s) on solid waste management call for diversion of both construction and demolition debris from landfills and incineration facilities. Instead, these materials should be properly redirected back into the manufacturing process or sent to the proper facilities for sorting and reuse. In addition, regular building operations must include a recycling plan to sort materials by category such as paper, plastic, glass, cardboard, food waste, and metals. For more information on the intent and requirements of the solid waste management credit, please visit the USGBC website. Not only does having a plan have a better impact on the environment, sustainable waste management has many other incentives such as valuable resources found in waste, taxes, reduced transportation costs, and growing public awareness of environmental stewardship.

Image Credit: The Ellen MacArthur Foundation

Image Credit: The Ellen MacArthur Foundation


Reducing waste and increasing reuse and recycling are critical, but some have even posed the question whether or not we could change the way we view waste altogether. The circular economy concept is gaining momentum which accentuates keeping resources in use for as long as possible, extract maximum value from products, and repurpose them at the end of their life. To quote Stacy Glass of Cradle to Cradle Products Innovation Institute, whose aim is to eliminate the concept of waste rather than just reduce waste:

“For too long, the value has been simply put on recycling with no concern for what that material is and if it has a valuable second or even third life. Recycling is dealing with the problems of past design. We need to change the emphasis to be: safe ingredients, perpetually cycled, design in ways that harmonize with humans and the environment. The future is nutrient management, not waste management.”

The Ellen MacArthur Foundation has wonderful educational resources pertaining to the circular economy, including this aesthetic and informative General Resources Map.

As a graduate with a Bachelor’s degree in Biological Science, I find the circular economy concept to be brilliant as it emphasizes Biomimicry, or mimicking the processes already found in nature. However, our existing linear economy will require a changing mindset that ultimately lies with the demand by individual consumers as well as the supply side that must switch from cheaply made goods to goods designed with the intent of “made to be made again,” meaning quality ‘nutrients’ or materials.

Since construction and demolition waste constitutes nearly one-third of all waste, it is necessary that the industry be methodically directed toward a circular economy, minimizing waste and maximizing value. Using the following methods and many others, construction waste can be limited by:

  • Developing a construction waste management plan
  • Identifying and sorting materials such as drywall, lumber, concrete, plastics, etc. that can be reused or recycled
  • Salvaging materials such as doors and windows for future use
  • Chipping branches and trees to use as landscaping mulch
  • Purchasing in bulk to reduce packaging waste

Buildings should be dismantled and sorted rather than demolished, which is a core principle of the LEED program. Emerald Skyline Corporation can handle the management of this process. Please visit the website for more information. The same goes for construction in that the building materials themselves need to be designed for eventual disassembly. What do you think it will require for the industry to make this shift?

One point is evident, and that is the fact that the future of waste management, recycling, reuse, and how we view these constructs is changing to meet the demands of our global economy as well as preserve our natural resources. As professionals in the sustainable building industry, we must all do our part to encourage the responsible disposable of solid waste by redirecting recyclable resources back to the manufacturing process and reusable materials to appropriate sites.

 

 
Sources: http://www.environmentalleader.com/2015/11/06/the-future-of-recycling-waste-management-is-resource-management-experts-say/#ixzz3yNPIryJl

http://www.wm.com/thinkgreen/pdfs/2014_Sustainability_Report.pdf

http://www3.epa.gov/epawaste/nonhaz/municipal/pubs/2012_msw_fs.pdf

http://www.ellenmacarthurfoundation.org/

www.usgbc.org

 

Shoreline Adaptation Land Trusts “SALT” – new concept for adaptation

John EnglanderBy John Englander
www.johnenglander.net

 

 

Shoreline Adaptation Land Trusts – “SALT” «««« DOWNLOAD HERE

At a conference today in St. Petersburg Florida I have put forth a new concept: Shoreline Adaptation Land Trusts. “SALT” The 3-page paper was published by the Institute of Science for Global Policy and can be downloaded above or from their web site www.scienceforglobalpolicy.org

I developed the concept in response to their challenge to come up with something specific that could be based on science and help the adaptation of policy to deal with rising sea level. This two day forum is: “Sea Level Rise: What’s Our Next Move?”

Similar to the concept of conservation land trusts which have been well established, a SALT could create a vehicle to facilitate the migration of vulnerable private lands. If you are interested, please download the short paper with the description.

Why Florida Developers and Business Interests Need To Understand and Embrace “Adaptation Action Areas.”

 

Mitch Chester

By Mitchell A. Chester, Esq.

The latest projections of anticipated sea level rise (SLR) in Southeastern Florida offer a stark and compelling reminder that commercial and residential adaptation planning should be a priority concern for developers, building and unit owners and operators, businesses and even tenants.

In October, 2015, the Southeast Florida Regional Climate Change Compact Sea Level Rise Work Group released a document which projects by the year 2030, sea level rise in the region can increase 6 to 10 inches (above 1992 mean sea level) by 2030, just a mere 14 years away. That’s only about half way through a 30 year mortgage. By 2060, the increase above 1992 levels is anticipated to be, based upon present peer-reviewed scientific projections, 34 inches.

To put that in to another context, according to the Work Group, between 1992 and 2015, based upon NASA satellite measurements, the ocean in this part of the planet has heightened by almost 3 inches. That is a significant rise in very short period of time.

As SLR science evaluates and warns of complex dynamic factors such as thermal expansion of ocean water, changing oceanic currents, as well as melting rates of ice sheets and glaciers, society needs to responsibly plan for and adapt to the reality of climate change by developing planning and operational tools which will extend the life of vulnerable areas. This includes preparing existing and planned commercial and residential structures on threatened properties.

An initial effort to plan for such adaptation was created by the Florida Legislature in 2011. Tallahassee adopted the Community Planning Act, which currently provides for “Adaptation Action Areas” (“AAA’s). One of the few actions taken by state lawmakers to address SLR concerns to date, Section 163.3164 (1) of the Florida Statutes defines AAA’s as “a designation in the coastal management element of a local government’s comprehensive plan which identifies one or more areas that experience coastal flooding due to extreme high tides and storm surge, and that are vulnerable to the related impacts of rising sea levels for the purpose of prioritizing funding for infrastructure needs and adaptation planning.”

Without understanding if there is adequate public infrastructure in specific areas, such as resilient water treatment facilities, storm drain systems, roads and bridges, developers and other business stakeholders may make costly and risky decisions to build or upgrade facilities which will be adversely and perhaps prematurely impacted by the verified threat of rising seas.

The failure to thoroughly understand the menace ocean dynamics presents to specific construction projects can ultimately lead to negligence and errors and omissions lawsuits against proponents of the projects, land owners, architects, engineers and construction companies.

Pursuant to Florida Statute Section 163.3177 (6) (g) (10), local governments have the current option to develop AAA boundary areas. These AAA zones can vary in shape and size, and are carefully being implemented in certain areas, such as within portions of the City of Fort Lauderdale.

Inclusion within properly funded Adaptation Action Areas have the potential to increase the value and useful lives of properties to be built or which are being revitalized.

Local governmental discretion to create and manage AAA’s is a potentially powerful tool which can be employed as a part of Florida’s growth management laws. When established for a part of a municipality, AAA’s are designed to promote adaptation to SLR and other coastal hazards, including rising water tables, tidal flooding and storm surge. The AAA strategy allows for funding, on a priority basis, for government infrastructure improvements within the defined boundaries of the AAA.

In November, 2013, the South Florida Regional Planning Council (SFRPC) made it clear, “This is the time for all Floridians, the majority of whom live less than 60 miles from the Atlantic Ocean or Gulf of Mexico, to question the long-term effects of sea level rise on more than 1,350 miles of our coastline, 4,500 of our estuaries and bays, and over 6,700 square miles of our other coastal waters.”

The SFRPC highlighted high-stakes economic concerns. According to the report Adaptation Action Areas: Policy Options for Adaptive Planning for Rising Sea Levels, “Three-fourths of Florida’s population resides in coastal counties that generate 79 percent of the state’s total annual economy. These counties represent a built-environment and infrastructure whose replacement value in 2010 is $2.0 trillion and which by 2030 is estimated to be $3.0 trillion.”

As Southeastern Florida grows in population and with new projects, clearly, there’s a lot at stake. Those planning to build new condominiums, offices, facilities and other “built environment” developments cannot responsibly do so without an understanding of the meaning of AAA’s. Furthermore, even those desiring to re-build structures need to recognize the critical conceivable importance of AAA’s in their planning process.

As usual, money is key. This means corporate financial adaptation in real estate development is just as important as any other aspect of proposing, and building structures.

In certain coastal and nearby inland areas, fiscal consequences have already profoundly impacted shoreline and adjacent lands. Take for example, the City of Miami Beach, which is spending in excess of a reported $400 million to place pumping facilities throughout the city and the intense and costly focus on climate related issues within the City of Fort Lauderdale and surrounding communities.

Understanding the potential benefits of inclusion in coastal community adaptation action areas can provide is a part of a responsible private sector hazard exposure management strategy. The key is early, intelligent and probing due diligence.

For example, developers considering new coastal projects, on either side of Florida’s Coastal Construction Control Line, will want to know several key issues prior to proceeding with a project so they can financially adapt:

  1. Is the property to be developed included within the boundary of an existing AAA? If not, is a AAA zone being considered for the subject property?
  2. What public infrastructure projects are planned for the immediate area around the proposed construction site? Is the existing or planned governmental infrastructure adequate to serve the development’s anticipated life-span?
  3. Is the AAA funded, and if so, what public projects within the zone are prioritized? How will early AAA projects affect the subject property? What funding mechanisms will power the AAA? For example, federal programs, increased taxes, a variation of development impact fees or bond issuances?
  4. What future plans does the municipality have within the specific designated AAA boundaries? Is the AAA in the planning or operational stage?
  5. What are the flooding risks for the developer’s site footprint over time?
  6. What political challenges are there to the full and proper implementation of an effective AAA?
  7. Will inclusion in an AAA zone enhance the property value of the project? One thought is that being situated within a AAA can potentially increase market value over a limited period of time.
  8. What area protection measures are being considered or are already underway to mitigate against sea level rise?
  9. What construction design requirements are being considered or mandated for the specific AAA? For example, is structure elevation required? To what extent? Will use of such tools help to reduce environmental exposure to the structure?
  10. Is the long-term AAA goal one of retreat as opposed to adaptation? “Managed retreat” is defined by the SFRPC as, “Strategies that involve the actual removal of existing development, their possible relocation to other areas, and/or the prevention of future development in high-risk areas. Retreat strategies usually involve the acquisition of vulnerable land for public ownership, but may include other strategies such as transfer of development rights, purchase of development rights, and rolling or conservation easements.”
  11. Is the AAA in an area where no development will be allowed in the near-term? Are restricted development rights on the horizon in the specific sector?
  12. What new technologies and strategies can be used within the boundaries of the AAA to help lengthen the productive life of the zone?
  13. Will buyers, renters, visitors and tenants be attracted to the property because of its inclusion in a AAA? In other words, can the zone have the same significance as a sea level rise equivalent of LEED-certified buildings?
  14. What can the county and municipality tell you about any adverse consequences for building and developing in a specific AAA?

Peer-reviewed science is clear. Even if we eliminate all greenhouse gasses over the coming years, sea level rise will continue. That’s the blunt reality. Properly planned and funded, Adaptation Action Areas can extend, for some finite period of time, those lands which are most at risk to the ever encroaching ocean waters.

Understanding the sustainable benefits of Adaptation Action Areas is key to responsible planning and development in coastal regions. Much more needs to be done in Congress and at the State Legislature to help engender constructive adaptation to sea level rise, but responsible implementation of AAA’s, with a strong public-private partnership, is a good starting point.

Mitchell A. Chester, Esq. is a civil trial lawyer practicing in South Florida. He is a member of the American Board of Trial Advocates and an AV rated attorney. In practice for over 36 years, he is deeply concerned about developing legal and monetary adaptation strategies and solutions for communities threatened by swelling oceans. Mr. Chester is editor of RaisingFields.org (how agriculture can adapt to sea level rise and increased heat), SLRAmerica.org (which explores legal and practical financial issues pertaining to sea level rise), FinancialAdaptation.org (monetary tools for sea level rise), Sea Level Rise Radio.com (a podcast which discusses topics to examine key societal issues and opportunities presented by encroaching waters) and MySeaLevelRise.org (SLR issues). His focus is on people, including homeowners, renters and business owners as we jointly prepare for altered coastlines. He is one of the directors of the CLEO Institute, which educates government leaders and students in Southeastern Florida about sea level rise and climate issues. Mr. Chester has presented SLR and climate issues in Southeastern Florida including events at the University of Miami, Florida Atlantic University, Miami-Dade College, Vizcaya Museum and Gardens, the Arthur R. Marshall Foundation for the Everglades, the Environmental Coalition for Miami and the Beaches, the Coral Gables Museum, and other venues.

How Greed and Capitalism Can Solve the Climate Crisis

By Greg Hamra, LEED AP BD+C, O+M
Climate Solutionist, Education & Advocacy
Guest Author

 GH1

You’re about to learn of a fiscally conservative, market based solution to the climate crisis that reduces government regulations, boosts economic growth, creates millions of jobs, save thousands of lives per year and reduces greenhouse gases and has the endorsement of leading economists and world-famous scientists.

But first, a disclaimer: I think Naomi Klein makes some very good points in her book, “This Changes Everything: Capitalism vs. The Climate.” Naomi Klein first landed on my radar with this hard-hitting quote:

“Climate change detonates the ideological scaffolding on which contemporary conservatism rests. A belief system that vilifies collective action and declares war on all corporate regulation and all things public simply cannot be reconciled with a problem that demands collective action on an unprecedented scale and a dramatic reining in of the market forces that are largely responsible for creating and deepening the crisis.”

I find it very difficult to argue with her statement. However, many experts believe solution exists somewhere in between Naomi Klein and Milton Friedman, in fixing capitalism, not overthrowing it. Don’t be so quick to dismiss capitalism as a tremendously powerful force to drive human behavior and major financial moves. Right now capitalism is very broken. It’s being misused, mismanaged, and even hijacked. And when it comes to our energy economy, it is completely bastardized. Milton Friedman is turning over in his grave.

“It is easier to imagine the end of the world than to imagine the end of capitalism.” – Fredric Jameson

And if you think all this is just a scam – part of a liberal conspiracy, I say to you: “You can ignore reality, but you can’t ignore the consequences of ignoring reality.” – Ayn Rand

Please take a moment to consider the benefits being put forth, an economic boost, job creation, and restoration of free-market capitalism! The issues at hand are of such great urgency and importance that none of us can enjoy the luxury of expecting everyone to do what needs to be done for the same reasons you or I have.

So what’s the problem?

Our need power our world by continually burning of fossil fuels results in serious consequences for our planet, our economy, and the way we live. Our very way of life is threatened. Burning of fossil fuels results in the release of heat-trapping gases to our atmosphere. This is not disputed.

The costs associated with this are immense. They include: downwind emissions that shorten people’s lives, sea-level rise (SLR), extreme weather, increased wildfires, ecosystem and biodiversity loss (including crop loss), dying coral, famine, floods, mudslides, damaged fisheries, and a national security risk in the form of climate refugees. (See documentary: “Climate Refugees” with Newt Gingrich – trailer).

The big issue for us in South Florida is clearly sea-level rise. In fact, Miami is ground-zero for the economic impacts of sea-level rise with the greatest value of assets at risk in the world. SLR is the result of a warming planet. Over 93% of the Earth’s trapped surface heat goes straight to the oceans. Thermal expansion of ocean water and melting of land-based ice results in sea-level rise. Here in S. FL, the seas have risen nearly 9 inches in the past 100 years, as measured by the Naval Air Station in Key West. During super high-tides, sea water is delivered into our streets through the storm sewers. (Sea-level rise in action) The City of Miami Beach is undertaking major infrastructure improvements, raising sea-walls, roads and sidewalks, and installing pumps to return seawater back to Biscayne Bay. The first phase of this project included four pumps at a cost of $15 Million. The entire project will involve 60-70 pumps with a whopping price-tag.

Estimated cost: $500 MILLION

Prices reflected in our cost of good or fuels: $0

With assets in the trillions to be protected, we need to do this, but we also need to fix a big accounting error.

Our broken energy economy bears little resemblance to a free-market economic model.

Three predominant market distortions that must be remedied:

  • The price on fossil fuels does not reflect the social costs.
  • Energy subsidies (picking winners and losers) serve to create deeper market distortions.
  • Top-down government regulations can be inefficient and costly, and receive consistent pushback from ‘free-market’ purists and industry groups.

The President’s new Clean Power Plan is an aggressive and effort to tackle GHG emissions. So what’s the problem? Half of the states are already protesting it.
GH2

Our energy economy is broken. Very broken. Nobody argues with this.

Another problem we have are elected leaders who are driven by fear, short-term interests, and often re-elected by low-information, similarly fearful voters. I submit that most of these punters, these ‘slow-lane’ Americans who waffle somewhere between “let’s keep it in neutral” and “more CO2 release is good for us” are actually quite scared. But they’re not afraid of the science. They’re afraid of the solutions. They fear that anything we do to reduce greenhouse gas emissions will tank our economy. Many people truly believe this, conservatives and many liberals too. And they’re wrong.

What we have at hand is potentially the biggest job-creating economic stimulus ever seen… if we get it right. But what if we don’t? It’s not like it’s the end of the world, right? Wrong That’s exactly what it means. Our survival on this planet depends on getting this right, and fast. We can’t afford to punt. We need a big play.

We need to fix the accounting error. The moment we begin to account for the social and environmental costs of carbon based fuels, the markets will shift.

To my conservative friends:

Our energy economy is nothing at all like the “free-market” Milton Friedman envisioned. Would you help to restore true, free-market principles, remove the socialism from the system, help restore capitalism and fix our energy economy? Consider dealing with this issue the Reagan way.

To my more liberal, and potentially anti-capitalist friends:

Capitalism is a big word, with many flavors. Leading economists realize we’re getting it wrong and that a correction is in order. Experts think more plausible, and certainly more politically viable to plug the holes in capitalism rather than swap it for an entirely different economic system. That would require nothing short of a revolution. Are you ready for that? Me neither.

There’s one plan that could put us on the right track. The Washington Post called it the most politically viable solution to reducing greenhouse gasses, and it is consistent conservative economic principles.

The carbon fee + dividend (CF&D) plan was written by a Republican icon, George Shultz, President Reagan’s Treasury Secretary and Secretary of State, and Nobel laureate Gary Becker.

It calls for a steadily-rising revenue-neutral carbon tax collected at the most upstream point — the mine, well, frack pad — (about 1600 points of collection in the U.S.) and rebating those fees back to American households. All of it. This is not a big government plan. In fact, it trades in current big government regulations and subsidies for a simple, more honest, market-based plan that fixes the accounting error.

This plan is consistent with conservative economic principles by embedding the true cost into the price we pay for our direct and embodied energy. When happens, market actors change behavior almost immediately. When the markets move in this direction we’ll be on our way. Suddenly all those green jobs we’ve wanted start taking off. American ingenuity and competition is unleashed.

This plan has the endorsement of leading economists, top scientists, and top economic policy analysts. George Shultz says: “You shouldn’t call it a tax if the government doesn’t keep it!”

Read about the Shultz-Becker Carbon Tax proposal in this WSJ article (or see PDF).

In summary the Carbon Fee and Dividend plan:

  • reduces government intervention
  • leverages the incredible power of the market
  • is revenue-neutral; rebates all funds to taxpayers
  • unleashes American ingenuity and innovation, and spurs competition
  • will create millions of jobs, benefiting our economy (REMI report)
  • would eliminate costly fossil-fuel subsidies
  • would result in thousands of lives saved
  • would reduce GHGs by over 50% by 2035

From a performance standpoint, the Carbon Fee & Dividend would outperform the Clean Power Plan. Look:

  • CPP aims for a 32% emissions reduction by 2030 (and some call it a job killer)
  • CFD would reduce CO2 emissions by 52% by 2035 (and it creates 2.8 million jobs)

So the solution is simple:

  1. Put an HONEST price on carbon
  2. Rebate all fees to American households
  3. Get out of the way and let the free market work

This is a call to my fellow Americans. Let’s fix capitalism! Let’s restore some honesty into the system.

Economist Robert Reich explains in 3-minutes:

GH3

What we need is political will for a livable world. We need a price on carbon, a carbon fee & dividend.

To be part of the solution, contact Citizens’ Climate Lobby, the most effective organization driving sane climate policy in this country. www.citizensclimatelobby.org

The world’s most famous climate scientist says…
GH4

Learn more: