The energy efficiency program is the first comprehensive approach that integrates many steps to use energy more productively. The program is expected to reduce energy consumption by up to 38 percent and will provide a replicable model for similar projects around the world. Work has already commenced, and building systems work is slated to be completed by year-end 2010. The balance of the work in tenant spaces should be concluded by end of 2013. Work that is scheduled to be completed within 18 months will result in over 50 percent of the projected energy savings. The balance will be an additional 36 months completed by 2013.

The project will prove the viability for energy efficiency retrofit projects to dramatically increase building energy efficiency and reduce its overall carbon output with sensible payback periods and enhanced profitability.

At the end of the project definition process, the team analyzed the steps to be taken in conjunction with other steps towards sustainability as part of the Empire State ReBuilding program within the framework of the existing USGBC LEED rating system. Internal calculations show that the Empire State Building will be able to qualify for GOLD certification for Leadership in Energy and Environmental Design (LEED) for Existing Buildings, and ownership intends to pursue such certification.

“Commercial and residential buildings account for the majority of the total carbon footprint of cities around the world – over 70 percent in New York City. Beginning in February 2008, the Empire State Building has been used as a test bench to create a replicable process to reduce energy consumption and environmental impacts,” said Anthony E. Malkin of building owner, Empire State Building Company. “Most new buildings are built with the environment in mind, but the real key to substantial progress is reducing existing building energy consumption and carbon footprint.”

“This innovative process, which has developed new techniques for modeling and organizing an integrated program, offers a clear path to adoption around the world, leading to significant reductions in greenhouse gas emissions,” according to Malkin. “Along with other steps taken, in recycling waste and construction debris, use of recycled materials, and green cleaning and pest control products, the model built at the Empire State Building will meaningfully speed the reduction in energy consumption and environmental impact and allow more sustainable operations – while simultaneously enhancing profitability and tenant comfort. This is a real program, happening in real time, creating real green jobs.”

The project partners used existing and newly created modeling, measurement and projection tools in a new and repeatable process to analyze the Empire State Building and establish a full understanding of its energy use as well as its functional efficiencies and deficiencies. This provided actionable recommendations along a cost-benefit curve to increase efficiency and without harming bottom line performance. In reviewing more than 60 optional activities, the team identified eight economically viable projects, applicable to building-wide renovations, electrical and ventilation system upgrades and tenant space overhauls that will provide a significant return on investment, both environmentally and financially.

“Not only will this project dramatically reduce the Empire State Building’s environmental impact, but now we’re able to do it in a way that provides meaningful costs savings to the building as well as its tenants,” said Raymond Quartararo, International Director, Jones Lang LaSalle.

With an initial estimated project cost of $20 million, additional savings and redirection of expenditures originally planned in the building’s upgrade program, and additional alternative spending in tenant installations, the Empire State Building will save $4.4 million in annual energy savings costs, reduce its energy consumption by close to 40%, repay its net extra cost in about three years, and cut its overall carbon output through eight key initiatives, including:

Green building is definitely part of the solution to get real estate and construction sectors up and going again.

Consider some of the compelling numbers and opportunities the White House has been eye-balling:

There are currently 120 million homes, 5.1 million commercial buildings and legions of government office structures in the U.S. today. These structures account for approximately 40 percent of the nation’s carbon emissions and consume 60 percent of its raw materials, so if even a reasonable percentage of them were retrofitted and became more energy efficient and environmentally friendly, we’d be setting a major and super-Keynesian economic multiplier in motion.

Legions of Good-Paying Green Jobs
A recent report from the International Labor Organization indicates that Investments in improved energy efficiency in buildings could generate an additional 2 to 3.5 million green jobs in Europe and the United States, with the potential much higher in developing countries.

Touching Industries Across the Board
Another reason to think green buildings will serve as a dynamic foundation for a broad-based economic recovery is because they touch a wide area of domestic industry sectors and technologies – including steel, solar, software, semiconductors, building materials, lighting, windows, HVAC and construction.

Green buildings could lead us back to prosperity because the retrofitting revolution will enable the battered and broken down real estate sector to survive and hang in despite the property value across the nation.

Getting the Economy Airborne Again
Retrofitting isn’t going to end the foreclosures; but it is going to offer the macro economy a positive jet that will eventually help it get airborne again.

Silicon Valley and the software industry could gain renewed momentum from the green building stimulus, too. Every eco-structure that is built or retrofit will require digitalized automation services and systems to manage the energy efficiency standards and goals on each floor. And, once green buildings start proliferating, I think we’ll look back and agree that they serve as an early adopter market, a proving ground, for a wide range of green technologies that can be applied in other industry sectors across the economy.

Another thing to consider is that green building stimulus is such an important macro-economic driver because of its impact on the global material science market. The development of a cutting-edge clean cement, for example, will almost certainly spur a fresh round of significant infrastructure projects around the world.

The Role of Government
Finally, green building has the potential to kick-start the struggling economy because it brings together the best of the public and private sectors on both the demand and supply sides. The driving and differentiating factor here is the fact that the government owns such a large percentage of the existing building stock in the form of offices, schools and defense department facilities.

The profound impact that green buildings can have on the economy is already evident in the wake of the stimulus bill, which has quickly brought a host of multinationals into the market looking for efficient lighting companies to acquire.

I’m also encouraged by the findings in Turner Construction Company’s “Green Building Barometer,” which indicates that 75 percent of commercial real estate executives won’t let the credit squeeze or shaky economy get in the way of their green initiatives.

Setting Standards
The real and immediate challenge, however, will be making sure that the recently allocated stimulus monies targeted at green building activity actually get spent – and spent efficiently and effectively. I’m especially impressed by the stimulus standards and scorecard that Smart Grid News has done for smart grid projects, and I think the green building sector should adopt and adapt something similar for best practices and best results.

In the end, though, I have confidence in President Obama because I think he knows that re-constructing the deteriorating economy starts at the ground floor and continues all the way up to the penthouse – and the soon-to-be green skies above and beyond.