Summary: Global warming is one of the most hotly debated topics in recent memory, and society is now focusing on environmental issues. This and the rising costs of fuel have led to the creation of a "green" industry that involves everything from focused recycling efforts to hybrid vehicles and green buildings.
Topics covered:
The environment is not the only thing impacted by the green movement, however. The insurance industry is greatly affected in a number of ways, from available investment opportunities (wind farms, solar energy companies, etc.) to changes in building codes that impact standard coverages such as ordinance or law. The National Association of Insurance Commissioners (NAIC) has issued a white paper discussing climate change and possible issues for the industry, including regulation.
Not only will property and liability coverages be affected, but replacement cost calculations, loss control surveys, expertise of adjusters and inspectors, inventories, and identification of equipment will all be impacted. Actuarial concerns may at first be more complicated until some history has been built up as to how well environmentally friendly construction holds up over time. There are already discussions about needs of Directors and Officers coverage to protect corporate officers from liability claims from emissions of greenhouse gases.
But what exactly is "green", and aside from its impact on society in general, what is the impact on the insurance industry?
There are a variety of definitions of green building, but they all include the conservation of resources, improved energy efficiency, environmentally friendly construction, and renewable energy. Environmentally friendly construction includes materials that are faster to replenish and that have a smaller impact on the environment. Instead of using lumber from trees that take thirty years to reach harvestable size, plants with a much shorter growth cycle may be used or plants may be harvested without harming the natural environment. The creation of energy may turn towards alternatives to fossil fuels including the use of biofuels, solar, hydroelectric, or wind power. More efficient appliances and internal systems also reduce the creation of harmful emissions and waste. Proponents of green building claim that this type of construction provides environmental, economic, health, and community benefits to an area. Air and water quality are improved, natural resources are conserved, operating costs are reduced, life-cycle performance is enhanced, and occupant comfort and health are improved.
Along with new energy sources and materials, new terms have developed to describe harmful emissions, the impact of emissions, alternate fuels, etc. A glossary is presented at the end of this discussion but it makes sense to explain a few terms here. One of the most commonly heard terms is carbon footprint. The carbon footprint is a measurement of all greenhouse gases we individually produce that impact the environment and particularly impact climate change. Carbon footprints are generated by everyone and increase or decrease depending on method of travel, resources used or recycled, etc. Someone who rides a bicycle to work, drinks tap water from glasses, and recycles papers generates less of a carbon footprint than someone who drives an SUV, buys bottled water, and doesn't recycle. The carbon footprint is measured in tons of carbon dioxide generated per year.
Greenhouse gases are gases given off by nature or created by human industry, and carbon dioxide causes the most concern. The gases absorb infrared radiation and trap heat within the atmosphere affecting global climate by raising temperatures. The burning of fossil fuels to run automobiles, power plants, etc. is a leading cause of greenhouse gases which in turn affects global warming and the environment. This concern over carbon footprint has led to the development of carbon offsets. Carbon offsets are a way to neutralize pollution. If a plant generates a certain amount of pollution, it can take steps to reduce its emissions or it can pay someone else to remove or eliminate pollution in the name of that person or organization. For example a company may fund reforestation projects or wind energy projects in order to offset the carbon footprint generated by its factories. The carbon footprint calculators let you know how much carbon you need to offset in order to be carbon neutral.
Biofuels are fuels created from plant materials such as grain, straw, corn, or other biological components. While this reduces the need for fossil fuels, concerns exist about diverting corn and grain from the food supply in order to generate fuel.
As with any new industry standards are an issue because the technology develops before any standards develop. However there are some new organizations that have developed some standards that builders can use in working with green construction. The first is the Green Building Initiative (GBI). The GBI was developed in part to help local home building associations develop green building programs similar to the National Association of Home Builders' (NAHB) model green home building guidelines. An assessment and rating system called Green Globes was developed in Canada to allow builders to assess new or existing buildings according to certain green requirements. GBI acquired the rights to distribute the Green Globes system in America. Six areas are reviewed, energy, indoor environment, emissions & effluents, resources, environmental management, and water. A total of 1000 points can be earned. Third party verifiers certify the construction when it is completed. In 2005 GBI was the first green building organization to be accredited as a standards developer by the American National Standards Institute (ANSI), and Green Globes is in the process of becoming an official ANSI standard.
The US Green Building Council is a nonprofit organization dedicated to expanding green building practices. It certifies sustainable businesses, homes, and schools, provides courses and workshops, and developed the LEED green building rating system. LEED is the Leadership in Energy and Environmental Design green building rating system and it encourages sustainable green building and development practices. LEED is the nationally accepted benchmark for the design, construction, and operation of high performance green buildings. In order to become LEED certified a building must meet certain performance standards. Certification occurs once it is verified that the construction meets all prerequisites, including obtaining the required minimum number of LEED points. Committees of volunteers from the building and construction industry developed the rating system.
Both commercial and residential buildings are evaluated on eight categories: innovation and design, location and linkages, sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, awareness and education. The total number of points gathered equates to one of the following four performance tiers:
Residential Commercial
Certified 45-59 Certified 34-42
Silver 60-74Silver 43-50
Gold 75-89Gold 51-67
Platinum 90-136Platinum 68-92
The USGBC has developed an accredited professional designation for individuals who have demonstrated their knowledge and skills regarding the LEED process. Individuals must pass an exam in order to qualify for the designation. Further information on the US Green Building Council, the LEED system, or the accredited professional designation is available on their website, www.usgbc.org.
The LEED program applies to new construction, and many buildings are remodeled or retrofitted. The American Society of Interior Designers Foundation (ASID) has partnered with the USGBC to develop a program called REGREEN, a set of residential remodeling guidelines. There is no rating system, just a set of guidelines for the most common home remodeling projects with case studies, references, indication of potential issues with each project, etc. The guidelines dovetail with the LEED system as much as possible. Remodeling presents its own issues, as the work must be done in and around existing structures.
The National Association of Home Builders launched its National Green Building Program in February 2008. The program links dozens of state and local green building programs with a national online scoring tool for builders and verifiers. A registry of green homes, green builders, and extensive educational resources is also available. The program is designed for mainstream homebuilders, and not builders of commercial buildings. There are seven primary construction areas reviewed: lot preparation and design, resource efficiency, energy efficiency, water efficiency/conservation, occupancy comfort and indoor environmental quality, operation/maintenance/education, and global impact. There are three levels of certification, bronze, silver, and gold, and an emerald level will be available in the National Green Building Standard. Each level grants a certain number of points for each category as follows:
| Required points for green building levels | Bronze | Silver | Gold |
| Lot preparation and design | 8 | 10 | 12 |
| Resource efficiency | 44 | 60 | 77 |
| Energy efficiency | 37 | 62 | 100 |
| Water efficiency/conservation | 6 | 13 | 19 |
| Occupant comfort and indoor environmental quality | 32 | 54 | 72 |
| Operation, maintenance and homeowner education | 7 | 7 | 9 |
| Global impact | 3 | 5 | 6 |
| Additional points from selected sections | 100 | 100 | 100 |
Currently homes are certified under the Model Green Building Home Guidelines, but in late 2008 the option of having them certified based on the National Green Building Standard will be available. The NAHB submitted the program to ANSI for approval as a national standard. The NAHB has a green professionals certification that requires twenty-four hours of classroom training, sixteen of which must be green building instruction, the person must have two years' experience, sign a code of ethics, and commit to fulfilling continuing education requirements.
A key component of green buildings is energy efficiency. Both the LEED and the Green Building guidelines encourage the use of Energy Star products. Energy Star is a program developed by the Environmental Protection Agency (EPA) and the Department of Energy (DOE) to save money and protect the environment through efficient buildings, products, and practices. While an Energy Star new home must be 15 percent more energy efficient than a home constructed in compliance with the 2004 International Residential Code, people are most familiar with the Energy Star appliances. Energy Star evaluates many products and those passing certain criteria are approved as qualified Energy Star products.
An Energy Star home will have certain key elements: effective insulation, high performance windows, tight construction and ducts, efficient heating/cooling, efficient products, and verification by a third party. Anything that receives an Energy Star designation uses less energy than other similar items. Commercial buildings are scored from 1-100 and the building must achieve a score of 75 or higher in order to be eligible. These buildings are among the top 25 percent of facilities in the country for energy performance, and they generally use 35 percent less energy than similar buildings.
The EPA is responsible for programs that protect the ozone layer. One of these programs is the GreenChill Advanced Refrigeration partnership. This is an alliance between supermarkets and related industries to promote advanced technologies, strategies, and practices in reducing refrigerant emissions of ozone-depleting substances and greenhouse gases. Many stores leak more than twenty percent of their refrigerant per year, and currently they are still using R-22 as a coolant, a known ozone-depleting substance. Joining GreenChill not only helps the environment but it improves efficiency for the stores as well. Other industry partnerships include the Responsible Appliance Disposal Program, Voluntary Code of Practice for the Reduction of Emissions of HFC & PFC Fire Protection Agents, Mobile Air Conditioning Climate Protection Partnership and Others.
Green certification isn't only for buildings, however. Cars and trucks account for generating close to a third of the total air pollution in the United States. The Environmental Protection Agency (EPA) has developed the SmartWay certification for automobiles. Vehicles are scored according to their environmental impact based on emissions and fuel economy. Scores range from zero to ten, ten being the best. The scoring is structured so that all vehicles and model years can be compared against each other. The best performers receive the SmartWay designation, which indicates that the vehicle scores well on both air pollution and greenhouse gases. The gas score reflects not just the burning of the fuel but all the steps involved in obtaining the fuel including production, refinement, distribution, and final use. In order to be SmartWay certified a vehicle must earn a six or better on both the air pollution and greenhouse gas scale, and receive at least a combined score of thirteen. SmartWay Elite is a second, higher rating category and vehicles in this category earn a nine or higher in both pollution and greenhouse gas rating systems. Approximately twenty percent of vehicles qualify for SmartWay certification.
This burgeoning interest in environmentally friendly and green construction and technology presents new issues for the insurance industry. Coverages may need to change in order to provide proper coverage for green construction. Debris may need to be disposed of in a specific way, and construction/repair may be more costly than standard construction. Traditional policy language may leave gaps in coverage. Vegetative roofs are a prime example of this. Current policies don't discuss plants as part of the roof structure. Plants are generally considered as part of the landscape and coverage for them is limited. However that limited amount will not provide coverage for the plants on the roof. The question then becomes are plants on the roof considered building materials or are they considered to be just plants. It makes a tremendous difference in coverage for the insured.
Other issues include workmanship of new technology. A contractor who has just started working with solar panels may have an increase in faulty workmanship or construction defect claims due to the learning curve of working with a new material. In such situations it then becomes important if the contractor has a professional green certification or not, and if the granting of various certifications accurately indicates the contractor's level of expertise. While proponents may say that the technology provides sturdier, energy efficient and environmentally friendly structures, the inherent underwriting risks have changed substantially. Time required to rebuild a structure may be significantly increased, and supplies and experienced labor may be even harder to obtain after a natural disaster than regular supplies, and therefore, even more expensive. As with any new technology, unanticipated issues may arise later as green materials age. Those unexpected issues may become substantial coverage gaps.
Underinsurance is another concern. If the property owner replaces or upgrades equipment with green materials that cost more to replace, the property is at risk of being underinsured unless steps are taken to ensure the property is insured to value.
One of the largest concerns is greenhouse gases. Whether or not companies are responsible for their greenhouse gas emissions remains to be seen. In Massachusetts v. E.P.A., 127 S.Ct. 1438 (2007) states, local governments, and environmental organizations requested a review of an order from the EPA that denied a petition for the EPA to regulate greenhouse gas emissions from vehicles under the Clean Air Act (CAA). EPA's position was that the Act doesn't authorize EPA to issue regulations against global climate change, and even if it had such authority it would be unwise to do so since the link between greenhouse gases and global warming is not fully established. The court ruled on two questions: did the EPA have the authority to regulate greenhouse gases from new automobiles, and if so was its reasons for refusing to do so in accordance with the Clean Air Act statute. The court ruled that greenhouse gases meet the CAA definition of pollutant and the EPA is authorized to regulate greenhouse gases if it determines that emissions cause or contribute to air pollution that may reasonably be anticipated to endanger public health/welfare.
In response to this ruling, EPA issued an Advance Notice of Proposed Rulemaking that invites public comment on the benefits and ramifications of regulating greenhouse gases under the Clean Air Act. The proposal reviews the ramifications of regulating greenhouse gases under the Clean Air Act and issues that may arise from such legislation. One concern is that if the EPA were to regulate greenhouse gases from vehicles then regulation of smaller sources such as schools, apartments, hospitals, etc. could also be triggered, and the task would be insurmountable. This would broaden the EPA's authority greatly. Disputes also surround whether or not greenhouse gases can be anticipated to endanger public health or welfare as defined by the Clean Air Act.
Other cases have steered away from deciding global warming issues by using the political question doctrine. The political question doctrine allows a court to refuse to make a decision because the making of that decision properly belongs to the decision making authority of elected officials. The purpose of the doctrine is to distinguish the role of the federal judiciary from those of the legislature and the executive, preventing the former from encroaching on either of the latter. Under the rule, courts may choose to dismiss cases even if they have jurisdiction over them. However, the rule has no precise formulation, and its development since the 1960s has sometimes been unpredictable.
In Connecticut v. American Electric Power Co.,406 F. Supp. 2d 265(S.D.N.Y. 2005), the state sued electric utilities for abatement of global warming. The court dismissed the case for lack of subject matter jurisdiction, because the case presented non-justiciable political questions. The court stated that it could not grant the relief requested by the plaintiffs without making the types of initial policy determinations regarding CO2 emissions, their impact and restrictions that are reserved for the executive and legislative branches.
A California court made a similar decision. In California v. General Motors Corp., 2007 WL 2726871 (N.D. Cal.), the state of California filed suit against various auto manufacturers for creating and contributing to global warming, an alleged public nuisance. The court dismissed the suit based on the political question doctrine. Citing the national and international debate on how to address climate change, the court held that "injecting itself into the global warming thicket at this juncture would require an initial policy determination of the type reserved for the political branches of government." In support of its order dismissing the suit, the court stated: "Because a comprehensive global warming solution must be achieved by a broad array of domestic and international measures that are yet undefined, it would be premature and inappropriate for this Court to wade into this type of policy-making determination before the elected branches have done so."
So until climate change legislation is enacted, the political question doctrine allows courts to sidestep a complicated issue.
Part of the problem with such suits is that there has to be some form of property damage or violation of a duty towards the plaintiff. While there are increasing attempts to make greenhouse gases a public nuisance, there must be proof that the rights of the public have been affected such as health issues, environmental losses, etc. Even if the negative effects can be shown to be caused by greenhouse gases, the challenge then is to prove that a specific entity generated the gases that caused the damage and not some other entity.(which is virtually impossible).
Carriers are approaching the green industry from two angles. Some companies are going green themselves, and reducing their own carbon footprints and supporting renewable resources. Other companies are looking at what changes the green industry brings to insurance and are developing coverages and policies that fit these needs.
Allstate has a green agency program that allows agents to make a $200 donation to support reforestation efforts and entitles the agency to be considered green. The donation supports the generation of 12,000 kWh of clean electricity and more than 2,700 feet of forest restoration.
State Farm has committed to reducing greenhouse gas emissions. Plans include reviewing fleet operations and switching to hybrid vehicles or alternative energy sources, purchasing Energy Star equipment, promoting telecommuting work for employees, using native plantings, phasing out harmful refrigerants, and recycling wherever possible.
Hartford participates in the Energy Star program, is taking LEED standards into account in the construction of a new office in Connecticut including daylight harvesting systems and insulated glass, and is an EPA climate leader.
Chubb is working to improve the energy efficiency of its buildings by recycling, supporting telecommuting/alternate work schedules, using mercury free bulbs, video conferencing instead of traveling, etc. Chubb is also caring for a wetland area close to the building in New Jersey and using nontoxic paints and detergents, and non-aerosol cleaning products in all its buildings among other things. Chubb has also formed a green energy team, joined the American Council on Renewable Energy and the U.S. Green Building Council. Other carriers supporting environmental efforts include Progressive, GEICO, Fireman's Fund, Travelers, and others.
Along with the efforts to make their organizations socially responsible, many carriers have developed green policies to provide coverage for this growing group of exposures.
Aon has developed a Green Building Property Program that provides coverage for green buildings. The policy provides additional costs to replace/repair property according to LEED, Green Globes Assessment or Green Building Initiative or equivalent requirements, repair/replacement of electrical equipment with Energy Star equipment, cost of hiring LEED certified architects or design professionals, charges for sponsoring a green building certification program, and costs to recycle debris from an insured loss.
Burns & Wilcox has developed Green Impact, policies designed to provide coverage for leading edge environmentally friendly exposures. Coverage is available for residential and commercial contractors who specialize in installing and servicing energy efficient products in buildings. Such things include solar panels, insulation, heating/cooling equipment that allows the building owner to qualify for certain tax credits. Homeowners coverage is available for homes with solar panels, heat pumps and other energy efficient items. The homeowner is protected from faulty installation, general product malfunction, and exposure of the job site during installation.
Green commercial buildings coverage provides for increased costs to rebuild/replace with green materials. Coverage is also available for industries specializing in alternative fuels such as ethanol, bio diesel, wind farms, etc. Not only could spills of some of these products negatively affect the environment, but in some situations they must be handled differently. Extinguishing an ethanol fire is different than extinguishing an oil fire and only one particular type of foam tested by the Ethanol Emergency Response Coalition passed all the tests against both E10 and E85/95 fuels.
Liberty Mutual has developed a directors and officers liability policy that provides protection from specific global warming related risks. The policy includes enhanced pollution liability coverage, pollution and global warming defense costs, and costs for regulatory probes arising from global issues.
AIG has both commercial and homeowners policies geared towards environmental concerns. Commercial products include coverage for alternative and renewable energy risks, liability issues not covered in general policies, pollution liability, and other coverages. The homeowners form is issued through Lexington Insurance Company and provides homeowners coverage that allows them to rebuild to green standards in event of a loss. Coverage is provided beyond replacement cost and allows the insured to adopt Energy Star efficient systems, use low VOC paints and adhesives, and use framing, roofing and siding supplies that are more durable, sustainable, and may even be composed of recycled content.
Fireman's Fund is one of the early developers of green insurance. Their commercial property form provides coverage for vegetative roofs, costs of green recertification fees, and 5 percent discount on LEED certified buildings and other green issues. There's also a policy specifically for manufacturers that want to reduce their carbon footprint and reduce water or energy use. Coverage is available for loss of business income due to loss of public utility credits or reimbursements because of the temporary suspension of alternative power generating equipment. Extra expenses to purchase water or power from a public utility, vegetative roofs, heat island effect, design consulting, certification fees, recycling additional expense, and other coverage are provided. A loss control team can assess a building and make recommendations for implementation of improvements that can help an organization reduce its overall carbon footprint.
Just recently Fireman's has announced their green homeowners policy and it is approved for use in twenty-five states, with the rest of the states expected to approve the coverage by the end of the year. Homes that are not currently built to environmental specifications can be rebuilt using the latest environmental standards after a loss. This includes LEED certification, Energy Star upgrades, Forest Stewardship Council certified wood, low volatile organic compound paints and carpeting, and recycling of construction debris from the insured site.
Allstate has a green auto insurance option that provides insureds with a discount. For every insured under the plan Allstate donates $10 to a national, environmentally conscious organization. The Allstate Green plan enrolls the customer in an easy pay plan that also reduces paper and has lower installment fees, increasing savings to the insured.
Travelers has a variety of green discounts and policies. First is a ten percent discount for insureds with electric boats. Owners of hybrid vehicles also receive a ten percent discount on their auto coverage. Travelers is yet another company that has joined the US Green Building Council to support green initiatives. Green Building Coverage Enhancement is available for mid-sized businesses and provides for additional costs to upgrade to green building materials and systems after a loss. Likewise a Boiler & Machinery product has been created that provides for replacement of damaged equipment with equipment that is more efficient, safe, and environmentally friendly. Lastly, Travelers has developed WindPak, which is coverage specifically for wind farms and those unique coverage needs including wind turbine generating units and related transformers.
Other insurers are regularly developing green policies and working with green organizations. The more energy costs rise and the more emphasis is put on global warming, the more interested consumers become in ways to save money and help the environment. Insurance coverage becomes a large part of making that interest feasible and practical.
Note that beyond the glossary is a list of various websites of with further information on the green movement.
Air pollution—chemical substance(s) in high enough concentrations in the air to harm humans, animals, vegetation, and materials.
Alternative energy—energy that is produced from non-standard sources such as solar, wind, hydropower.
Anthropogenic—something made by or resulting from human activities. Usually refers to gases emitted from the manufacture of products.
Biofuel—fuels made from plant materials. Waste wood, straw, tires, alcohol, and other biological components can be converted into motor gasoline.
Biomass—the dry weight of all living things at each level of the food chain. Includes trees, plants, roots, animals.
Carbon footprint—measurement of all greenhouse gases we individually produce that impact the environment and particularly climate change. It relates the amount of greenhouse gases emitted over the full life cycle of a product or service, often produced by burning fossil fuels.
Carbon offset—a way of neutralizing generated pollution. Person or organization pays someone to reduce or remove global warming pollution in your name. Offsets often include renewable energy, energy efficiency and reforestation projects. There are various carbon offset calculators available on the internet such as carbonfund.org, fightglobalwarming.com, e-bluehorizons.com, liveneutral.org, or clearclimatesolutions.com.
Carbon sinks—natural systems that store more carbon dioxide than they release. Trees, the ocean, and dirt are all natural carbon sinks.
Clean Air Act—federal law allowing the EPA to set limits on certain air pollutants and how many emissions can be generated from chemical plants, utilities, and steel mills. States or tribes may have stricter regulations, but none may have weaker laws. The state, local and tribal governments monitor and enforce Clean Air Act regulations. The EPA also enacts various programs that focus on reducing pollutants that cause acid rain, smog, etc., reducing emissions that may cause cancer or other health problems, and phasing out chemicals that destroy the ozone layer.
Energy Efficiency Ratio (EER)—is a measure of how efficiently a cooling system will operate when the outdoor temperature is at a specific level (95F). The higher the EER, the more efficient the air conditioner.
EPA climate leaders—companies that partner with EPA and commit to reducing their impact on the global environment by reducing greenhouse gas emissions, setting reduction goals, and reporting progress to the EPA. The EPA provides technical assistance in the development of the partner's greenhouse gas inventory management plan. By participating in the program companies receive EPA recognition as corporate environmental leaders.
Green—building that uses less energy, water, and natural resources. Greenhouse gases are reduced, the building creates less waste and is healthier and more comfortable for occupants. Processes for building are environmentally responsible and resource efficient from start to finish. Green building equals sustainable building or high performance building.
Greenhouse gases—gases given off by nature or created by human industry. The gases absorb infrared radiation and trap heat within the atmosphere affecting global climate.
Home Energy Rating (HERS)—an analysis of a home's projected energy efficiency in comparison to a reference home based on the 2006 International Energy Conservation Code. A certified Home Energy Rater uses specially-designed software to analyze the expected energy use of the home based on the home's construction plans. This analysis yields a projected, pre-construction rating score for this home (called a HERS Index). When the rating is being conducted for the purposes of qualifying the home to earn the Energy Star, the rater then works with the builder to identify the energy efficiency improvements needed to ensure the house will meet Energy Star performance guidelines. Various tests are conducted to test for air leaks, etc. and results are used to develop the final HERS rating. The lower a home's HERS Index, the more energy efficient it is. A home built to code scores a HERS Index of 100, while a net zero energy home scores a HERS Index of 0. Each 1-point decrease in the HERS Index corresponds to a 1% reduction in energy consumption compared to the HERS Reference Home. Thus a home with a HERS Index of 85 is 15 percent more energy efficient than the reference home and a home with a HERS Index of 80 is 20 percent more energy efficient.
Leadership in Energy and Environmental Design (LEED)—the green building rating system established by the U.S. green building council. LEED is the nationally accepted benchmark for the design, construction, and operation of high performance green buildings, and encourages sustainable green building and development practices.
How does energy efficiency affect green building? Products that are more energy efficient produce fewer greenhouse gases. This includes the amount of greenhouse gases produced in the manufacture and transportation of such products to the consumer.
Home LEED levels: certified 45-59 points
Silver 60-74
Gold 75-89
Platinum 90-136
Political question doctrine—a court cannot rule on a particular issue because it is of a political nature and the legislature should make the decision. The courts do not want to overstep their bounds by deciding on something that falls in the purview of other branches of government.
Pollution—something that contaminates something else by making it impure or unclean. Contamination of the environment by manmade waste.
Renewable energy—energy that is replenished at the same rate it is used. As the center of green living, renewable energy encourages use of solar, wind, and other alternative forms of energy.
Seasonal Energy Efficiency Ratio (SEER)—a measure of how efficiently a cooling system will operate over an entire season, and is usually used to measure the efficiency of a central air conditioner. The higher the SEER, the more efficient the air conditioner.
Solar Heat Gain Coefficient (SHGC)—the fraction of solar radiation admitted through a window, door, or skylight. This tells you how well the product blocks heat caused by the sun. The lower SHGC, the less solar heat it transmits.
Sustainable—building in which the design, site, construction, maintenance etc. are accounted for in ways that promote energy, water and material efficiencies and provide healthy and comfortable interior space for occupants. Using healthier and more resource efficient models of construction, renovation, operation etc. sustainable components are recyclable, reusable, and made from renewable resources. They reduce pollutants and water usage.
Sustainability—central to green living, is about preserving the environment and natural resources for years to come. It is the process of maintaining a small ecological footprint so that one's life has no permanent detrimental effect on the earth. There are specific fields within it like sustainable architecture, sustainable agriculture, and sustainable development.
Volatile Organic Compounds (VOCs)—gases that are emitted from literally thousands of solids or liquids. Commonly these are found in paints, dry cleaning solvents, building materials, carpet and carpet cleaning solutions, pesticides, craft materials, and cleaning products, just to name a few. The compounds are known to have adverse health effects and concentrations of compounds are much higher indoors than outdoors. Concern over VOC's has led to no or low VOC paints, adhesives, thinners, carpeting, and other products.
U-Factor—measures the heat transfer through a window, door, or skylight and tells you how well the product insulates. The lower the U-Factor, the greater resistance to heat flow (in and out) and the better its insulation value.
Zero- or low-energy building—a building that has no net energy consumption when measured across a year's time. It uses alternative energy sources like solar and wind power. Both zero- and low-energy buildings are great for green living.
www.usgbc.org – US Green Building Council
www.epa.gov – Environmental Protection Agency
www.nahbgreen.org – National Association of Home Builders Green Building Program
www.regreenprogram.org – Partnership between American Society of Interior Designers and the USGBC
www.eia.doe.gov – Energy Administration Information
www.thegbi.org – The Green Building Initiative
2008/2013
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