As energy costs rise, more states and cities are adopting policies that encourage or require new construction to be energy-efficient. "There's been a huge groundswell in green-building leadership at state and local levels." says the U.S. Green Building Council. Nearly 3 times as many cities and counties approved green-building policies last year as did 4 years ago. A record number of states, 14, took such action last year, as compared with one in 2004, according to the council. So far this year, at least eight states and 22 localities have endorsed green policies. Many of the measures require new government buildings to meet the council's Leadership in Energy and Environmental Design (LEED) standards. Others give commercial builders incentives, such as tax breaks and expedited permits. A few policies, such as one in Maryland's Baltimore County, give tax credits to builders for green construction of homes.

DOE launched the Zero-Net Energy Commercial Building Initiative (CBI) on August 5, with the goals of developing new commercial buildings that produce as much energy as they use and making these buildings marketable by 2025. Such zero-net energy commercial buildings will minimize their energy use through cutting-edge energy efficiency technologies and will meet their remaining energy needs through on-site renewable energy generation. To help with the CBI, DOE has also formed the National Laboratory Collaborative on Building Technologies (NLCBT), which will allow DOE and five of its national laboratories to work closely on the research, validation, and commercialization priorities that are critical to the success of zero-net energy buildings. Argonne National Laboratory, Lawrence Berkeley National Laboratory, the National Renewable Energy Laboratory (NREL), Oak Ridge National Laboratory, and the Pacific Northwest National Laboratory will be working together under the NLCBT.

Aon Corporation is offering a green insurance option that allows commercial property policyholders to repair or replace eco-friendly buildings, or upgrade to more environmentally sensitive components, after suffering a loss. The Chicago-based insurance broker launched its Aon Green Building Property Program last week. The product, offered as an enhancement to the company's Global Property Policy, covers certified and non-certified eco-friendly properties and provides reimbursement for full repair or replacement of certified green building components and for green upgrades. According to the company, the policy ensures the materials used and development that occurs in the repair, replace or upgrade process meet local green building requirements, in addition to widely recognized standards in the United States or European Union.

Arguments about whether governments are legislating fast or thoroughly enough to really tackle climate change aside, legislation is coming. As a result, an increasing number of UK companies will have to get their heads around the idea that carbon reporting could become just as requisite a part of being in business as financial audits. This year sees the UK's Climate Change Bill become law as the government attempts to deliver on its commitment to achieve a 60% reduction in emissions by 2050. The bill contains powers to enforce emissions trading schemes including the Carbon Reduction Commitment (CRC) which comes into force in 2010 and could require companies to include carbon emission information in the financial reports. Emissions reporting developed to the same sophistication as financial reporting sounds like a daunting prospect - and for many it will be.

President Bush signed the Housing and Economic Recovery Act of 2008 into law on July 30, and while the act is focused primarily on addressing the mortgage crisis in the United States, it also includes measures to encourage the greater use of energy efficient mortgages (EEMs). Such mortgages allow people to purchase or refinance their principal residence and incorporate the cost of energy efficiency improvements into the mortgage. But while the idea is laudable, implementation is difficult, as the borrower must first receive a home energy rating report, usually from an energy consultant, and the report must demonstrate that the energy efficiency improvements are cost effective. After the loan closes, the money for the improvements is placed in an escrow account and is not released until an inspector verifies that the improvements are installed and will achieve the desired energy savings. Due to both the complicated nature of EEMs and a lack of awareness of EEMs, the Federal Housing Authority has typically issued only about 30,000 EEMs per year.

Many builders and contractors have turned to "green" building practices to court those concerned about the environment. The ideas range from insulated walls to reduce energy loss, to energy-efficient lighting in new structures. But Sutter Roofing is taking things one step further. First they offered a single-ply, energy-efficient membrane that covers a roof and can be planted with grass and shrubbery to reduce or eliminate rainfall runoff. Now the company has a solar power plant for roofs. It takes the concept of solar power to a new level: 16-foot-long strips of photovoltaic panels that look like giant pieces of movie-theater film glued down in rows. They become part of the roof itself. They can be walked on, rained on, and since it requires over 600 pounds of force to remove a panel -- hurricane-prone Miami-Dade County has approved their use.