LOOK FOR GREEN IN AB 32

Hoteliers in California, and likely soon in many more states, must grapple with key environmental regulations requiring them to reduce their carbon footprint significantly over the next decade and beyond. Among such regulations is AB 32, also known as the California Global Warming Solutions Act of 2006.

Key provisions of AB 32 require California hotels to do the following:]

• Return greenhouse gas emissions to 1990 levels by 2020, or an estimated 30- to 35-percent reduction in current GHG emissions.

• By 2050, cap GHG at 80 percent below those levels of 1990.

Almost immediately, AB 32 raised several questions and caused considerable confusion. For instance, how does a hotel determine its carbon emissions currently, and how can it determine what its carbon emissions were in 1990? What happens if a particular hotel didn't exist in 1990? What areas of a hotel property generate the most GHG? And what gases are considered GHG?

“Hotel properties are not the first facilities that have had to deal with these issues,” says Stephen Ashkin, president of The Ashkin Group, a consulting firm to the green cleaning industry. “Many building owners and managers are not only finding ways to meet AB 32 standards and help protect the environment, but are also discovering there can be more advantages to the program than they initially thought possible.”

Twenty years ago, it was not uncommon for a new green building to cost as much as 20 percent more than a conventional building. However, today those costs have been reduced to less than five percent and are often negligible, says Ashkin. Similarly, green retrofits have come down in price. In addition, Ashkin says there are some direct advantages to implementing green improvements similar to those required by AB 32:

Safer investment

New green buildings are often viewed as better-constructed and safer facilities, and in some cases, have lower insurance costs and receive more favorable financing.

Fast-track approvals

A time- and cost-consuming part of the process of building or retrofitting a facility is waiting for government approvals; some local governments make approvals for green facilities and remodels the highest priority.

Tax incentives

There are numerous tax credits from state, local and federal governments for building green facilities.

AB 32 credits

In California, hotels that surpass AB 32 emissions reductions may create marketable credits that can be sold to other companies and organizations.

Energy savings

Green buildings, many already meeting AB 32 standards, use an average of 28-percent less energy than conventional facilities.

“Begin now to assemble a ‘Green Team’ to help guide your facility to be more sustainable, environmentally responsible and reduce carbon emissions,” says Ashkin. “Learn about GHG, and establish benchmarks determining the current carbon footprint of your facility(s) and where you would like to see it in two years, five years, 10 years or more.”

Ashkin doesn't deny there may be some work involved in meeting AB 32 guidelines and becoming more environmentally sensitive. “The astute hotel owner can not only meet AB 32 and similar requirements, but also take advantage of the current and future rewards these programs will offer,” he says.