Yesterday, the House Select Committee on Energy Independence and Global Warming convened a hearing to discuss how green building - the practice of constructing sustainable and energy efficient buildings - can both curb climate change and reduce energy costs.

In his opening statement, Chairman Edward Markey (D-MA) observed that the building sector is responsible for up to 48% of our nation’s greenhouse gas emissions, and an even higher percentage on a local level. For example, 78% of Boston’s heat-trapping gases are attributed to buildings. Nonetheless, only 7% of participants in a recent survey identified buildings as a major source of climate change emissions. The hearing yesterday was intended to change that perception.

Chairman Markey plainly stated, “[e]fficient design, low-emission construction materials, and decreased energy use in buildings can combat global warming and simultaneously reduce the rising costs of lighting, heating and cooling structures…” The overall economic and environmental benefits of more efficient buildings are clear… consumers get a good return on their investment.” Accordingly, Chairman Markey urged the greening of all buildings, “whether they are new or already built, commercial or residential, public or private.”

San Francisco Mayor Gavin Newsom testified at the hearing, highlighting the advantages of green buildings and described trends showing decreasing green building costs as the market grows and matures. He shared San Francisco’s experience with green buildings, which began in 1999 with the City’s first green building ordinance requiring Leadership in Energy and Environmental Design (LEED) certification for all city buildings. Later this month, the City is expected to adopt the most aggressive green buildings standards of any major American city to impose green building requirements on newly constructed commercial buildings over 5,000 square feet, and on renovations over 25,000 square feet. He concluded with two recommendations: (1) “reauthorization of the renewable energy tax credit” to encourage the use of renewable energy systems - one of the most important elements of green buildings; and (2) “shifting the tax burdens of Americans from taxing jobs to taxing pollution” - to provide a stronger financial incentive for green building.

Other witnesses included: Michelle Moore, Senior Vice President of Policy and Market Development of the U.S. Green Building Council, which developed LEED; Edward Norton, actor and trustee of the Enterprise Foundation, which works to bring green building practices to low-income housing development; Kent Peterson, President of the American Society of Heating, Refrigerating and Air-Conditioning Engineers, an engineering society whose mission is to advance energy efficiency technology; and Tony Stall, Vice President of Marketing for Dryvit Systems Inc., a corporation working to improve the efficiency of buildings with “Outsulation,” an energy efficient insulation system on the exterior of a building.

As Chairman Markey noted, yesterday’s hearing was intended to raise awareness that green building presents the greatest opportunity for climate change emissions reduction. Recent studies have shown that, of all the major sectors of the global economy, the buildings sector is both the largest culprit and the largest opportunity in terms of cost-effective savings. In other words, green building represents the “low-hanging fruit” for achieving significant greenhouse gas emissions reductions.

Indeed, many cities have known this for some time and have so far taken the lead on green building. As of April 2008, approximately 77 cities, 24 counties, and 19 towns across the U.S. have adopted some type of green building initiative.

As the green building movement matures, the time is also ripe for the federal government to consider green building policies and legislation setting forth baseline or minimum standards of resource and energy efficiency. That dialogue began with yesterday’s hearing. As Mayor Newsom urged, “a clear policy pathway” exists - the time to pick that low-hanging fruit is now.

For further information about this topic, please contact Akin Gump.