Q&A: Understanding LEED Certification
by Nancy LeeNancy Lee, a nonprofit and government consultant with LarsonAllen, discusses Leadership in Energy and Environmental Design (LEED) certification with Peter K. Dahl, PhD, a LEED accredited professional and a sustainability specialist with Sebesta Blomberg. Dahl is currently guiding several projects through the LEED certification process, in addition to developing sustainability master planning for organizations. Sebesta Blomberg, headquartered in Minneapolis, Minnesota, is a national leader in providing innovative engineering and consulting services to private and public sector clients.
What is LEED certification?
A building becomes LEED certified when a set of sustainable strategies are applied during the design and construction of the building. This can include such recognizable features as solar panels on the roof to generate renewable energy, or subtle features like an optimized mechanical system to improve the energy efficiency and comfort of the indoor spaces. The LEED rating system has five categories: sustainable sites, water efficiency, energy and atmosphere, materials and resource, and indoor environmental quality.
LEED certification shows that the owner and project team incorporated strategies to reduce the impact of their building on the site, in the community, and in their region. Owners find value in the savings realized from energy-efficient design and operation of building systems. The owner and tenants take pride in the fact that their building has demonstrated above-average performance, with a focus on providing healthy and productive indoor environments.
Can you phase in LEED standards by degrees or in stages, to make it more affordable?
Yes, the LEED rating system structures certification in four different levels: certified, silver, gold, and platinum. The certified level requires the project team to follow all prerequisites in LEED and achieve a minimum of 40 points out of the 110 total points possible in the rating system. Silver requires a minimum of 50 LEED points; gold requires 60 points; and platinum requires 80 points. The facility needs are identified in the programming phase of the project. Sustainable strategies and design elements are proposed and discussed in relation to the functional requirements, values, and, of course, budget. Based on this concept for the building’s sustainable design, achievable LEED points are identified and the corresponding level of LEED certification is calculated. If there is room in the budget, the client frequently selects additional strategies to pursue and include in the project as appropriate.
If I’m building or renovating a facility, what does it mean to me in terms of capital costs?
A sustainable building (even without LEED certification) will have a cost premium compared to a building built to meet the minimums set in the building code. However, the added aesthetics, functionality, and improved performance of the building once in operation must be taken into consideration when discussing the cost premium for sustainable buildings. When budgeting for a LEED building project, the first thing to consider is the owner’s facility needs. In the programming phase of design, defining the elements of sustainable design to include in the project is an essential first step and will lay the groundwork for LEED certification. How sustainable does the owner want the building to be? A building that is designed to operate with no need for a utility connection (a net-zero energy building) will cost more than a building designed to demonstrate more practical and cost-effective sustainable strategies.
Studies by MHTN Architects and the American Chemistry Council have estimated cost premiums for LEED buildings and the simple payback of the investment in sustainability, based on the level of LEED certification. The cost premiums for LEED ratings are:
| |
LEED Certified |
LEED Silver |
LEED Gold |
LEED Platinum |
| Estimated Cost Premiums |
0.5–3 percent |
3–4 percent |
5–6 percent |
7–12 percent |
| Payback of Investment |
4-year payback |
5-year payback |
6-year payback |
8-year payback |
In this study, the payback was calculated using LEED-related energy savings to offset the initial cost premium. Savings are achieved through an average 15 percent reduction in utility bills and operating expenses are 2–3 percent less in LEED certified buildings than comparable non-LEED buildings. Additional financial benefits may also include:
- Reduced absenteeism since employees work in a healthier and more comfortable environment
- Lower churn rates from improved tenant satisfaction
- Higher resale values and leasing rates
- Discounted property insurance rates available from select insurers
Does LEED certification make sense in a remodeling or retrofitting context?
Yes. There are several variations of LEED certification that can apply to remodel and retrofit projects. One variant, LEED for Commercial Interiors, places more focus on materials and furnishings used in tenant fit-outs. For buildings already in operation and without any capital projects planned, LEED for Existing Buildings: Operations & Maintenance includes green cleaning and green purchasing criteria for the facility manager.
It sounds like LEED adds a cost due to the documentation requirements and certification fees. Why should I use LEED? Can’t I achieve the same thing without it?
The LEED certification process assists in defining, documenting, and verifying the sustainability of a building. LEED has become the language of sustainable building design and is used to communicate sustainable goals and strategies for building projects.
The documentation required in the LEED certification process compels the project team to implement and complete the sustainable strategies outlined for the project, since they must assure requirements are met. An independent organization reviews the LEED documentation to ensure requirements are met, and LEED certification is only awarded if the documentation is approved by the third party reviewers.