Commentary: Going green is the only way to go in Nevada

Friday, May 11, 2007 | 7:36 a.m.

We've heard it many times before: We live in a world of finite resources. But there are only a few places in the country where that simple statement hits home as dramatically as it does in Nevada. A day rarely goes by that we aren't reading about water shortages or the threat of drought.

So, how do we put a price on our scarce resources, such as water? More importantly, how do we value ecological stewardship measures that will help prevent a future with more and more unpredictable and destructive shifts in climate?

While these questions are not easy to answer, it is clear that change is the path forward. And change always comes on the heels of leadership. Fortunately, we have not been lacking leadership in our state. The public servants we've sent to Carson City have long been advocates for more efficient use of our natural resources.

Two years ago state lawmakers passed legislation providing tax abatements for high-performance, green construction and tax exemptions for products or materials used in the construction of a green building. The Nevada Legislature showed great foresight in recognizing green buildings as part of the solution to the state's energy and water conservation goals.

The legislation sought to encourage the private sector to design and construct its buildings using the U.S. Green Building Council's LEED rating system, which is proven to save on average 40 percent of water, 30 percent of energy and 70 percent of solid waste. Not to mention, LEED-certified buildings reduce carbon emissions, the pollutant responsible for climate change, by 35 percent.

Undoubtedly, the legislation is working. After the bill passed, we've seen a sharp rise in the number of projects entering the pipeline to achieve LEED certification - more than 63 million square feet of building space. Still, only one building - Patagonia's recently completed distribution center in Reno - has been approved for the tax abatement.

But given this year's budget shortfall, the state legislators have wisely anticipated a likely unsustainable budgetary situation in future sessions and have passed legislation suspending the tax incentives. Additionally, to their credit, lawmakers are taking action and looking to retool the green building tax incentive without compromising momentum.

As a potential solution, the Legislature could propose a maximum annual limit on the tax abatements and exemptions, and consider a grandfather clause for projects already under way.

During this process, our message remains the same: Green building makes sense for the environment and the bottom line. And while the market has been voluntarily adopting the practice with great success, states and localities across the country have recognized the need for sound public policies to accelerate green building market transformation.

In Nevada, we still need to do all we can to save energy and water. At this critical time when change is needed now more than ever, we shouldn't fault the tax incentive for its success, but simply restructure it for - coincidentally - more sustainable success.