In the land of urban myths, it’s often said that building energy codes are bad for business. Energy codes, which in Georgia are adopted at the state level, require developers to spend time and materials upfront to ensure new and renovated buildings will be super-efficient.
Buildings soak up 36 percent of all U.S. energy and consume 65 percent of the electricity we generate, at a cost of $400 billion annually. The energy (and water) needed to operate a building over its lifetime of more than 30 years is staggeringly expensive. So it makes sense to develop and renovate our buildings to use energy as productively as possible right from the get-go.
Highly efficient building insulation, lighting, heating and cooling make this possible. Energy codes ensure we consistently install these measures to meet minimum levels of energy efficiency across the commercial construction industry.
Myth purveyors have long claimed that because energy codes can increase upfront construction costs, they also stifle local building activity. However, an analysis of publicly available construction data from 2005 to 2013 shows this assessment to be completely inaccurate.
Georgia implemented an advanced energy code in 2011. Coincident with this new energy code, Georgia in 2011 enjoyed its largest-ever number of activated construction permits, known in the trade as “permits pulled.” Reviewing permits pulled from 2005 to 2013, states across the Southeast collectively showed a trend toward increased growth in commercial construction following the adoption of stronger energy codes.
Looking to cities like New York and Chicago, where some of the country’s strongest energy codes are applied to the commercial building sector, we observe vibrant urban landscapes that offer a plethora of different spaces, a net migration of highly sought-after millennials and strong economies.
In post-recession Atlanta, where a stronger energy code remains in place, a quick scan of the horizon shows us new construction, renovations and upgrades in every corner of the city. These span downtown, Midtown and Buckhead and include projects like the Westside Beltline trail, Ponce City Market, Krog Street and the Falcons stadium, to name a few. Less visibly, but just as powerfully, since 2011, almost 200 Atlanta building owners have signed on to the Better Buildings Challenge, a program that asks them to voluntarily reduce energy and water use by 20 percent by 2020.
According to Atlanta Gas Light, a Better Buildings Challenge participant, voluntary reductions in its building energy use have helped the company strengthen existing customer relationships and created new dialog with potential customers. Many participants, including landmarks like One Atlantic Center, Lenox Square, 191 Peachtree Tower, the Turner Building, the Civic Center, St. Luke’s Episcopal Church, the Technology Square Research Building, the Hyatt Regency Atlanta, and One Buckhead Plaza have found the energy-saving measures they’ve implemented provide strong returns on investment, paying for themselves in just a few years. Future utility savings will make it possible for owners and tenants to grow, invest in new technology and create jobs.
Across the nation, energy codes mirror what our smart businesses and citizens already do. They create energy-efficient, high-performance buildings that result in cost-effective operations and happy tenants. They are also the workplaces of choice for smart, productive millennial employees. And they help showcase environmental commitment for competitive businesses whose customers demand corporate social responsibility.
Publicly available data confirms what we’re seeing all around us: Energy codes do not adversely impact construction activity. They may also offer one of the best approaches to fulfilling our vision for Atlanta, a lustrous city of economic progress for years to come.
Mandy Mahoney is president, Judy Knight is director of communications and Lauren Westmoreland is energy codes manager for the Southeast Energy Efficiency Alliance.
