As we mentioned in our last post, the U.S. Green Building Council (USGBC) has approved a new Pilot Credit – Informing Design Using Triple Bottom Line Analysis – for projects seeking certification under the LEED Green Building Rating System™. A distinctive feature of this pilot credit is the requirement of conducting a benefit-cost analysis (BCA).
The new LEED pilot credit provides guidance on the specific steps to follow in conducting a BCA. There is no one prescribed approach recommended; however, they provide a sample generic approach that can be found below.
- 1. Select LEED credits for analysis,
- 2. Specify categories of costs and benefits to analyze,
- 3. Quantify inputs for costs and benefits,
- 4. Monetize annual costs and benefits,
- 5. Discount future cash flows to calculate Net Present Value and other metrics.
BCA analysis can be carried out by the project team, by consultants, or by using easy-to-use software designed to facilitate benefit-cost analysis.
Stay tuned to our next post where we will reveal the easiest way to earn the new LEED Pilot Credit – Informing Design Using Triple Bottom Line Analysis. You can also drop by our booth (booth #2456) at Greenbuild on October 5-6 in LA.