Guest blog: If you build it…

By Alan Van Ormer, Prairie Business Magazine (reprinted with permission)

Energy efficiency experts are seeing growth in Leadership in Energy and Environmental Design (LEED) certified and other green-type building designs in the region.

Rebecca Molldrem, LEED accredited architect at JLG Architects in Fargo, ND believes the green energy phenomenon is about values.  “People are realizing that population growth, health issues and environmental issues are a problem. They are educating themselves, saying they’re not okay with how things are and want to change it,” she says. “Value systems are changing. Owners are saying they expect a green, sustainable building and will consider additional costs (to a point) to get that. Much like when people are willing to pay a slight premium for organic foods — they value the product because they feel it is healthier for them and more environmentally friendly to produce, and adjust their budgets accordingly.”

Stacey McMahan, principal and LEED accredited professional at Koch Hazard in Sioux Falls, SD believes the United States is a cash-crop society, but that people are also realizing the intrinsic and health value propositions. “The bottom line is effective in driving a lot of change,” she says.

There are different green building definitions, but the definition most always includes designing buildings that will last longer, are more efficient, cost less to operate and contribute to healthier living and working environments. LEED certification is a point-based system where building projects can earn LEED points for satisfying specific green building criteria.  The five categories include sustainable sites, water efficiency, energy and atmosphere, materials and resources and indoor environmental quality. There are also four levels of LEED – certified, silver, gold and platinum.

According to the Green Building Certification Institute (GBCI) website, there are nine LEED certified projects in North Dakota. The highest LEED standard is gold in the state. Four buildings meet those standards: GRE/Gagnon Office Building in Bismarck, GSA Land Port of Entry in Antler, Microsoft Fargo in Fargo, and Standing Rock Community Elementary School in Fort Yates.

South Dakota has 22 LEED certified buildings. Two are platinum, which is the highest level that can be achieved. Heartland Consumers Power District in Madison and the Museum of Visual Materials in Sioux Falls have both reached that level.

Heartland Consumers Power District

Museum of Visual Materials

Minnesota leads in LEED certified buildings

Minnesota has the most LEED certified buildings in the three-state region with 160. There are nine platinum facilities. In western Minnesota, the University of Morris COmmunity Service Building in Morris is rated gold. Silver certified buildings include Evergreen Hall at the University of Minnesota-Crookston, Lakeland Mental Health Center in Fergus Falls, North Country Health Service Senior Housing in Bemidji, and West Central Research and Outreach Center in Morris.

Mike Smoczyk, director of education at Kraus-Anderson and LEED green associate housed in the Twin Cities and also on the board of directors of the Minnesota chapter of the U.S. Green Building Council, says there is an increase in the awareness of energy efficient buildings. He notes that in Minnesota, public buildings, like county facilities, universities and state schools, are working to meet the B3 guidelines focused on energy.

B3 guidelines for both new buildings and major renovations must exceed the state energy code by at least 30 percent, focus on achieving the lowest possible lifetime costs, encourage continual energy conservation improvements, include air quality and lighting standards, create and maintain a healthy environment, facilitate productivity improvements, specify ways to reduce material costs, and consider the long-term operating costs of the building including the use of renewable energy sources and distributed electric energy generation that uses a renewable source or natural gas or a fuel that is as clean or cleaner than natural gas.

“The state of Minnesota insists that their buildings meet the three guidelines focused on energy,” he says. “It is also easy to access good information so people everywhere are more aware.”

Kraus-Anderson is working on two LEED registered facilities in western minnesota.  One is in Wadena, the community that was devastated by a tornado a few years ago. The hgih school will be ready to go within six months, Smoczyk says. “They were interested in energy efficiency, in particular, investing in insulation and taking measures that will save money for the life of the building,” he states.

Alexandria is also pursuing a LEED registered building that will be breaking ground in the spring. “There was very much of an interest by the community,” Smoczyk says. “They brought up sustainability and energy efficiency. People are concerned about that and wanted that.”

He also believes that LEED, ENERGY STAR and B3, which are state and national programs that assist with energy efficiency and sustainability, are spurring green building. “People are becoming more aware of energy and environmental needs, as well as saving money in the long run,” Smoczyk states. “We are all taxpayers and with public buildings, should thoughtfully plan to save energy and money.”

Smoczyk says many are trying to educate people to invest more upfront and understand there will be payback in an eight year time period or less and savings for many years after that. “That is more and more the way buildings are being built,” he says.

The number of square footage of LEED certified buildings is increasing each year. According to Leap Chear, LEED certified architect at EAPC Architects Engineers in Fargo, in 2011 there was 1.7 billion feet of commercial space. “Buildings that have gone through the LEED process are starting to collect more data and learning that LEED buildings are energy efficient and sustainable and they are starting to get proof,” he says.

Chear notes that EAPC has several projects that have potential for LEED certification. “We are hoping to put more up in the coming years,” he says, adding the firm has set a goal for one LEED certified project for each office per year. He also says that in North Dakota, more projects are going through the registration process. “Government projects, both new and major renovations, are required to be LEED certified,” he states. “It is good to incorporate those LEED strategies, even if they are not going through the process.”

McMahan says the United States government is leading the change. “[U.S. General Service Administration] is requiring LEED certification. Other departments are assessing for LEED but not requiring it,” she explains. McMahan notes there are programs in nearly every state studying environmental impact, sustainability or requiring LEED building certification. For instance, Sioux Falls is currently engaged in a sustainability MP including a greenhouse gas (GHG) assessment. There are also comprehensive programs in Austin, Texas and Chicago, as well as pilot city programs in Charleston, South Carolina and Fayetteville, Arkansas.

Another reason why LEED certified square footage is growing is that information is spreading and manufacturers and the construction industry are taking the lead and making their product more sustainable and environmentally friendly. However, Chear states that costs are coming down because there are better materials and products being manufactured every year, as well as more efficient equipment. “The benefit is so great, that these initial investments are worth it. You can expect higher performing business without initial higher investment,” he says. “With the LEED process, it takes more effort and time in the design stage because it requires a much higher level of design strategy. Green projects or green buildings continue to cost more at the same rate. Manufacturing industries are starting to adapt to it and prices will eventually come down.”

The main benefits of building green include reducing energy consumption, protection of ecosystems and improved occupant health. McMahan states that architects need to take the long view in regard to costs as well as a more comprehensive one to include embodied costs of materials and projects. “For example, expending energy extracting virgin materials when materials can be reused from another deconstructed building, or shipping tile from China instead of using a more local material, preserving and renovating a building instead of tearing one down and constructing buildings to last 100 years instead of 30.”

There are also several challenges associated with constructing LEED buildings. Smoczyk believes that the major challenge is always the upfront costs to invest in better windows, better building envelopes, and more efficient mechanical systems that over time will have a payback.

Chear says, for one, developers are slow to embrace it because of the initial investment. “They need to look at it as an investment down the road,” he states. “Invest in the building upfront and reap the benefits for the life cycle of the building. The payback is going to be there.”

Molldrem states that with the change in the energy code, in particular the R value (insulation properties), it is causing manufacturers to change the way they detail products. “Now the more we get into the design build, the construction managers are asking us to do initial energy calculations,” she says. “Architects are taking on more responsibility for energy efficiency earlier in the design.”

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LAIC announces new Executive Director

The Lake Area Improvement Corporation in Madison announced today they have hired Julie Gross to serve as their new Executive Director.

Julie Gross addresses members of the Madison Chamber of Commerce during the Chamber’s 2012 Annual Meeting.

Gross currently serves as the Executive Director of the Madison Chamber of Commerce and will transition into her new role over the next few weeks.

“We are very excited about Julie accepting this important role within the Madison community,” said LAIC President Mark Stoller. “The LAIC board, along with community members, interviewed several candidates and put a great deal of time and energy into the interview process. We feel we have chosen the right person to promote our community and continue the efforts of the LAIC.”

“Julie is a lifelong Lake County native and has deep ties to the community. She has successfully led the Chamber where she developed new programs, enhanced existing programs and made a positive impact on the community. We are excited to have her on board.”

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Maroney Commons featured in SDML Magazine

Maroney Commons in Howard, South Dakota is featured in the May 2012 issue of South Dakota Municipalities, the magazine of the South Dakota Municipal League. The article, “Maroney Commons Surprises Visitors,” includes a comprehensive look at the facility, which includes a full-service restaurant, motel and conference center.

Maroney Commons. Photo courtesy the Rural Learning Center.

Maroney Commons is the product of multiple partnerships, first and foremost between Rural Learning Center and Miner County Development Corporation, both located in Howard. Heartland has a long-standing relationship with both organizations, and awarded a $1 million HELP Loan in 2011 to MCDC for the construction of Maroney Commons. Heartland also participated in the facility’s grand opening in August of 2011.

To learn more about Maroney Commons, visit www.maroneycommons.com or on Facebook at www.facebook.com/maroneycommons. For the full SDML magazine article, click here.

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Register now for APPA Customer Connections Conference

Registration is now open for the 2012 Customer Connections Conference, American Public Power Association’s annual conference for utility professionals in the ares of public communications, customer service, energy services and key accounts.  Also included for the first time in 2012–professionals in the area of economic development.

The conference will be held October 21-24 at the Indianapolis Downtown Marriott in Indianapolis, Ind.  It features more than 40 sessions, including:

  • Economic Gardening: Maximizing Small and Mid-Level Companies in Your Community;
  • Utilities and Site Selection: A Powerful Partnership;
  • Working with Existing Industry to Encourage Growth and Expansion;
  • How to Set Up a Commercial Rebate Program;
  • Data-Driven Customers: Diving Deeper to Get to the Next Level of Energy Savings;
  • Smart Grid Ps & Qs;
  • Communicating with Elected Officials;
  • Anatomy of a Crisis Communications Plan;
  • Best Practices in Utility Collections; and
  • Smart Customer, Smart Rep: Getting the Message from the CSRs to Your Customers.

In addition to these sessions, the conference features roundtable discussions, networking breakfasts, receptions and other opportunities for information exchange and networking. Attendees will also have an opportunity to attend in-depth pre-conference seminars, including:

  • Enhancing Customer, Employee and Departmental Communication and Cooperation;
  • Adding Value to Your Key Accounts Business Community; and
  • Residential Energy Services that Work.

Conference fees are $645 for APPA members and $1,290 for nonmembers who register before September 28.  Pre-conference seminars require separate registration fee. Heartland provides a complimentary APPA membership to all its customers, qualifying them for the discounted registration fee.

Visit www.publicpower.org/CustomerConnections for program information and to register.

Courtesy Leanne Nienhuis, APPA

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Madison, Sioux Falls designated Tree City USA in 2012

Heartland customers Madison and Sioux Falls are two of 36 South Dakota communities currently recognized as Tree City USA’s.  Tree City USA is a community improvement and national recognition program for towns and cities which, in the process of effectively managing their public tree resources, meet the program’s established standards. Madison has been a Tree City USA for 31 years while Sioux Falls has retained the designation for 32 years.

To qualify for Tree City USA designation, a community must meet four standards:

  1. A community or tree board or other organized committee must be in place and meet regularly to oversee the urban and community forestry program;
  2. An effective community tree ordinance must be developed, passed and enforced;
  3. A community forestry program funded by a minimum of $2.00 per capita must be in place; and
  4. An organized Arbor Day celebration must be held and an official Arbor Day proclamation made by the mayor or other community leaders.

Communities of all size benefit in many ways from a Tree City USA designation, including improving public image, environmental education, creating a local framework for action, increasing citizen pride, positive publicity and preference for financial assistance.

Tree City USA is sponsored by the National Arbor Day Foundation and locally sponsored by the state Resource Conservation and Forestry Division.  Application forms are available from the state office and field service offices, or by contacting Tiffany Arp, Urban & Community Forestry Coordinator, at Tiffany.Arp@state.sd.us.

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Register for Finance Officers’ School

South Dakota Municipal League has released the preliminary agenda for the 2012 SD Governmental Finance Officers’ School, taking place June 13-15 at the Crossroads Hotel and Event Center in Huron.  Finance Officers’ School is an educational two-day training program for all Governmental Finance Officers, Assistant Finance Officers, Clerks, Treasurers, and other interested individuals.

Featured presentations include a keynote address, “It’s All About Attitude,” from professional speaker Mike Oster, “Budgeting for 3rd Class Cities” with Deene Dayton of the SD Department of Legislative Audit, “State Revolving Loan Funding” with Ted Haeder of the First District Association of Local Governments, “Listening, Customer Service, Dealing with Difficult People” with Charlie Wharton of the SD Department of Game, Fish and Parks, among others.  The event will also include a golf tournament, president’s social, Q&A sessions, special panels and more.  For the full agenda and registration information, visit www.sdmunicipalleague.org.

SDML is also currently accepting nominations for 2012-2013 Finance Officer of the Year. All nominations must be submitted in writing by May 14 to SDML, 208 Island Drive, Ft. Pierre, SD 57532.  The award will be presented during the Finance Officers’ School’s Finance Officer of the Year Banquet. The banquet will feature keynote speaker Holly Hoffman, SD native and Survivor: Nicaragua participant. For the nomination form, contact SDML at (800)658-3633 or check out the April edition of South Dakota Municipalities, SDML’s monthly magazine.

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Federal Agencies Target Public Power

A myriad of federal regulations and a struggling economy continue to put pressures on public power systems throughout the country.

The Federal Energy Regulatory Commission is restricting self supply by public power systems in regional transmission organizations, the Environmental Protection Agency has ignored the needs of municipal utilities in its relentless war on domestic use of coal, the Commodity Futures Trading Commission is putting the end-user exemption at risk in an over reaction to Wall Street abuses of financial markets, and the Department of Energy, most recently, has called for drastic, expensive changes to the mission of WAPA and the other power marketing administrations to support favored interests of Secretary Chu.

Last week, our national trade association, American Public Power Association (APPA) took an unprecedented step to protect public power interests by filing suit against the EPA for the Mercury and Air Toxics Standards rule, which ignored the needs of public power utilities in meeting the required emissions limits. APPA did a survey last year and found that 90% of its members who took part needed 77 months or more to prepare for compliance with the rule, whereas the rule gives only allows 48.

There is existing legislation that provides that the federal agencies must take into account the impact of rules on small business and municipalities.  As in so many other instances in its war on domestic use of coal, the EPA just ignored this law.

Heartland believes that the public power business model – local ownership and control, strong customer focus, not-for-profit with affordable cost-based rates, reliable service, and environmental stewardship -  provides us a strong foundation to meet the challenges posed as a result of being targeted by these agencies. We could use some help from Congress in this effort.

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