When Gov. Linda Lingle signed into law a bill requiring all state agencies to design and construct buildings to meet LEED (Leadership in Energy and Environmental Design) Silver certification last May, it was an important step for Hawai'i's future. I applaud the state's commitment to environmentally responsible building practices. Yet, private developers who incorporate sustainable measures in their projects repeatedly encounter barriers in the process.

Existing codes and regulations often clash with the desire to build responsibly, and with the government's new policies. For example, it has been challenging to obtain county government approval for innovative site improvements and building techniques, such as the use of harvested rainwater for irrigation and toilet flushing.

Rainwater catchment was once common in Hawai'i, but now requires special approval. The use of rainwater for irrigation and toilet flushing can reduce the use of potable water by more than 80 percent, removing a significant burden from our strained aquifers and minimizing the need for additional water storage facilities. While catchment and water conservation measures such as dual flush toilets and waterless urinals reduce the demand for potable water, not one county in our state recognizes the use of water-saving measures in its assessment of water source, transmission or storage fees. Developers of green buildings incur the incremental costs associated with the cistern, water pumps and water lines needed to lower the use of potable water, but our counties charge water fees as if there were no catchment system or conservation measures in place.

The U.S. Green Building Council's LEED program provides third-party verification of green building measures such as water savings. Projects seeking a LEED rating can achieve points toward certification by reducing their water demand a minimum of 20 to 30 percent in a building and 50 to 100 percent in landscape.

Our counties could significantly lower their capital expenditures on water improvements if water-saving measures were commonly used. To encourage water conservation by compensating for the incremental costs associated with conservation measures, counties might consider lowering water impact fee charges by an amount that corresponds to the percentage of water efficiency achieved in a project. Such reductions would apply only to the one-time impact fees and not to the monthly water rates, although the building owner would, naturally, realize ongoing savings from reduced water use.

As the industry reinvents itself and transitions toward green building, regulatory agencies and government policies must follow suit in order for the movement to reach its potential.

Oregon and New York have tax credit programs that provide financial incentives for high-performance buildings, and Maryland has allocated $25 million in green building tax credits. In Nevada, qualifying green buildings are eligible for partial tax abatement.

Cities such as Seattle, San Francisco, Santa Monica, Austin, Madison, Wis., Portland, Ore., and New York City have specific offices dedicated to the promotion of green building practices. These offices provide resources in the form of guidelines, education, advocacy and, in some cases, financial incentives.

Portland's Office of Sustainable Development offers free technical assistance to developers and homeowners interested in green building. Each year, it provides $450,000 in grant money to private projects through its Green Investment Fund to encourage sustainable development. The office also funds a part-time position at the Office of Planning and Development Review in order to work through permitting issues.

Chicago expedites the permitting process for projects that achieve LEED certification and apply certain sustainable strategies from a designated list. The tiered system shaves months off the permitting process, and the consultant review fee is also waived for building owners that earn LEED Silver or Gold certification.

As an island state where freshwater resources are scarce, almost all our energy and building materials are imported, and our waste disposal options are limited. Hawai'i is perhaps the best laboratory in the world to test sustainable building practices. I encourage our state and county governments to join in the exploration of new ways to promote green development to preserve the natural beauty of our home.

The Urban Land Institute will hold a Forum on Public Policy and Sustainability next Friday. Everyone who cares about the future of our island home should attend. Go to www.hawaii.uli.org for more information.

Everett Dowling is the president of Dowling Company Inc., a real estate development company developing 10 out of the 44 projects in Hawai'i that are currently registered or certified under the LEED program.