THE COSTOF GOING GREEN

Through a variety of techniques, such as energy saving appliances, improved ventilation, recycling rainwater, green buildings use less energy than conventional homes, emit less of the greenhouse gases that cause global warming, and often provide safer and more pleasant environments for residents who are not subject to harmful chemicals and compounds.

But one of the biggest obstacles is cost.

Estimates on the up-front costs of building green and the time it takes to recoup that investment vary. The city’s Department of Design and Construction has figured that green buildings cost 2 to 3 percent more to construct, and the U.S. Green Building Council, a coalition of building industry leaders, estimates that, on average, it can increase initial costs by between 2 and 7 percent.

Proponents point out that these costs can be recovered in lower operating costs over the life of the building – particularly reduced energy and water bills. And those expenses pose an increasing burden for many homeowners and rents.

The cost of energy in US cities increased on average 11 percent last year, accordingto the US Conference of Mayors._New York City is considering an increase of 11.5 percent in water rates, which would add an estimated $72 to the average water and sewer bill for a single-family home in the city._

Despite this, many developers are reluctant to put more money into upfront construction costs.

To help developers and builders defer the costs of building green, the state and city have offered a series of tax incentives and financing.

The state began offering the first tax credit for developers of green buildings in the country in 2000. It has distributed the total $25 million allocated to the program among seven projects. The New York State Energy Research and Development Agency also offers a variety of help with different aspects of green building.

Some money is also coming from the non-profit sector.

The Enterprise > Community Partners has invested $130 million dollars to finance the development of 1,800 homes in the city over the last two years.

Yet many say this is still not enough, and so government has begun to require, not just encourage, environmentally friendly construction.

The state mandates that the buildings housing many state government agencies improve their energy efficiency by between 10 and 35 percent, and that they purchase up to 20 percent of their energy from renewable sources, such as wind or solar.

And the city enacted Local Law 86 at the beginning of this year, which requires that most new, non-residential developments using at least $10 million of city financing reduce their energy costs by between 20 and 35 percent, among other environmental requirements. The law is estimated to affect $12 billion in construction.