WHITE CITY — Wedged into Jackson County’s industrial district, amid green chains, boilers and smokestacks, is a small office building that would do Ralph Nader proud.

S&B James Construction Co. has overhauled its 40-year-old headquarters, equipping the 4,600-square-foot building with the latest environmental trappings and topped it off with solar panels capable of producing 17.8 kilowatts of electricity.

It’s the first such commercial project in the Rogue Valley, although community-owned Solar Ashlandhas panels producing up to 30 kilowatts on municipal structures.

S&B James is a design-and-build contractor, often involved in multi-million dollar projects for the likes of Bear Creek Corp. and Asante Health Systems. It has committed itself to building a green future and hopes customers will follow suit.

An Oregon Energy Trust rebate, state business income tax and federal credits make such projects financially feasible.

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"It’s a no-brainer," says Tom Hall, the company’s executive vice president. "We wanted to demonstrate we were willing to do it ourselves and that it makes sense. We invested our own dollars and we did it because it penciled out. Certain things don’t pencil out and we’re not going to do something that takes 20 to 25 years for a pay-back. It’s a common sense deal."

S&B James’ staff architect Stephen Miller says the green building concept encourages reusing materials, such as beams, and taking wood fiber waste to places such as Biomass One rather than a landfill.

"It’s the way things used to be done a hundred years ago," Miller says. "It has operable windows and natural lighting for all of the office space.

"When machinery and technology took over designing, we began building glass boxes totally sealed with other boxes to take care of air and light. Reflecting natural light back into a room makes it a better building for people. But the bottom line is that it’s more (economically) efficient to operate."

The crowning achievement in S&B James’ $425,000 remodel are the 96 solar photovoltaic panels, which produce voltage when exposed to the sun’s radiant energy. Each panel produces 180 watts when hit directly by the sun’s rays and costs about $1,100 apiece or more than $112,000 overall.

Bob-O Schultze of Electron Connection of Hornbrook, Calif., installs such panel arrays in both Oregon and California.

"That system will pay for itself in five years and make money in terms of off-set electricity in year five," Schultze says.

While the company will be able to bank wattage generated during peak solar production periods to use to offset winter power costs, state law prohibits Pacific Power from buying excess energy.

"When you design a system, you look at power consumption," Schultze says. "It doesn’t make sense to design anything more than a net zero out."

While incentives make it reasonable for private companies to build green, state and federal buildings are now required to be certified through the U.S. Green Building Council’s Leadership in Energy & Environmental Design program

Projects are scored on a point system, working up through silver, gold and platinum. The S&B James is hoping to gain gold certification for its building on Agate Road when construction is completed later this year. Platinum standing would’ve cost more than the company was willing to pay for a two-decade pay-back period.

While the up-front costs are greater, LEED buildings cost less to operate and the air circulating inside is generally healthier, primarily because toxic building materials, are avoided.

"The goal is not to harm the environment or the people inside the business," Miller says.

The U.S. Green Building Council created LEED to establish definition and standards for green building, recognize environmental leadership among builders and contractors, to stimulate competition in the industry and raise consumer awareness.

Reach reporter Greg Stilesat 776-4463 or e-mail business@mailtribune.com.