BOMA rings in changes.

The Building Owners and Managers Association (BOMA) International last week launched its Market Transformation Energy Plan aimed at reducing use of natural resources and non-renewable energy sources. As its annual trade show got underway at the Jacob Javits Convention Center, BOMA issued a 7 Point Challenge it said would serve the dual purpose of both reducing the environmental impact of commercial real estate while simultaneously enhancing profits through cost saving measures.

And to emphasis the theme of the 7-point plan being profitable as well as environmentally responsible, the leaders of BOMA International rang the closing bell at the New York Stock Exchange on July 24.

Rather than encouraging the development of new green buildings or pressing for the alteration of already existing properties, the BOMA 7point plan focuses on ways in which buildings can become more environmentally sound and energy conservative without investing in new infrastructure. BOMA believes that the impetus for adoption of the plan will be generated from the self-evident cost savings of their recommendations.

The plan is a mixture of pragmatic recommendations for immediate action and paradigm changes aimed at positioning the industry for future challenges.

The 7-points plan is as follows: 1. Continue to work towards a goal to decrease energy consumption by 30% across portfolios by 2012; 2. Benchmark energy performance and water usage through the EPA's ENERGY STAR benchmarking program; 3. Provide education to building managers, building owners and operators, engineers, and others involved in building operations, to ensure that equipment is properly maintained and utilized; 4. Perform an energy audit and/or retro-commissioning of buildings and implement low-risk, low-cost strategies to improve energy efficiency with high returns; 5. Extend equipment life by improving the operations and maintenance of building systems and ensure equipment is operating as designed; 6. Through leadership, positively impact the community and the planet by helping to reduce the industry's role in global warming; and 7. Position the industry as a leader and solution provider to owners and tenants seeking environmental and operational excellence.

This plan has already been approved by the BOMA International board of governors, and has been enthusiastically received by 91 BOMA chapters. The rush to implement the plan results from what BOMA International incoming chairperson Brenna Walraven calls the "triple bottom line".

The "triple bottom line" refers to the triumvirate of benefits derived from following the plan, namely the prestige of social responsibility, the long term benefits of helping the environment, and the immediate result of a positive return on investment.

All of the participants in the BOMA International 7-point plan conference stressed the ultimate component of the triple bottom line, positive return on investment. Walraven specifically pointed to points 3 through 5 of the plan, which she said would put an emphasis on solutions that would pay investment back within a year or less.

Karen Penafiel, vice president of Advocacy at BOMA International, noted that a reduction of energy and water usage of 30% against an energy star rating of 50 could produce savings between $1.80 and $2.25 per square foot by reducing the cost of water, electricity and building envelope.

"Simplicity and clarity," said Stuart Brodsky, the program manager for commercial properties at the EPA's Energy Star program, "It [the 7-point] plan is logical, and it leverages profit to get people on board. Everyone asks 'what's the incentive?' because they are used to getting offered an incentive to conform to a protocol. But with the 7point plan, the changes themselves generate the savings, and that is the incentive."

Brosky said there were 4.8 billion commercial properties in America, totaling 71 billion square feet. 9 billion square feet of the 71 is managed by members of BOMA. Last year, Energy Star reductions saved $14 billion by conserving 170-kilowatt hours, or 35,000 megawatts, and 37 million metric tons of CO2, which is the equivalent of 25 million cars worth of emissions.

In addition to the internally generated 7-point plan, BOMA International has been working with government authorities on the federal, state, and local levels, and encouraging the 91 BOMA chapters to do the same. This includes close collaboration with Mayor Daley of Chicago over future legislation in that city related to green buildings and energy conservation in commercial real estate, as well as efforts to have provisions for commercial energy and water efficiency added to the energy bill currently working its way through Congress. The BOMA local in Austin has pledged to have 100% of its member space Energy Star benchmarked by the end of the year.

The close association with the EPA's Energy Star program marks an important choice for BOMA International. Energy Star is but one of many rating systems used to evaluate the conservation and "greenness" of a building. Rather than aiming for Leadership in Energy and Environment Design (LEED) certification administered by the U.S. Green Building Council, BOMA has chosen association with the standards set by a government agency.

The Energy Star rating system concentrates on the use of high efficiency fluorescent lights, low standby energy use for computers, and the use of LED lights. The Energy Star label can be seen widely on a number of products ranging from dishwashers to entire buildings. The standard is a result of almost 50 years of EPA data.

The government association is notable because it runs contrary to the normal impulse of business to shy away from government standards. Rather than being antithetical to profitability, Energy Star represents a set of government-generated standards that actually save business money.