Originally published 3rd Quarter 2004
Part I of a Two-part Series
In recent years, the availability energy efficient building
products and recycled building materials has greatly increased. It is no
coincidence that developers are turning to high performance sustainable or
“green” designs for building projects all over the United States. What has
sparked this green movement? A combination of factors, including concern about
the environment, the abundance of environmentally-friendly building materials,
economic incentives, and the financial savings that green building offers have
contributed to the trend. A leader in promoting high performance green building
has been the United States Green Building Council (USGBC). In 2000, the USGBC
published a voluntary, consensus-based rating system to define and measure the
standard for a high performance green building: the Leadership in Energy and
Environment Design Green Building Rating System or LEED® Rating
System. Since then, LEED has become the widely-accepted national standard for
green building design, construction and operations. LEED certification is
granted to buildings which integrate sustainability, water efficiency, energy
efficiency, renewable resources and indoor environmental quality into their
design, construction and operation. Federal agencies, states and local governments
have been incorporating LEED into laws, regulations and ordinances governing
construction of public buildings. Financial incentives and fast-track permits
may be available to private developers who incorporate LEED into their
projects.
What Is a Green Building?
Unlike conventional buildings, green buildings are designed,
constructed and operated in a manner which increases environmental performance,
economic value, improves the health of occupants, and enhances productivity of
workers. By integrating environmentally-friendly building materials, water
conservation and energy-efficient systems into building projects, green means
clean.
Examples of LEED certified buildings include:
- City of Seattle
Justice Center (Seattle, WA)
- Chicago Center for
Green Technology (Chicago, IL)
- Conservation Law
Foundation Building Extension (Boston, MA)
- Eugene M. and
Christine Lynn Business Center at Stetson University (DeLand, FL)
- National Association
of Realtors Washington Headquarters Building (Washington, DC)
- Premier Automotive
Group North American Headquarters (Irvine, CA)
- Rinker Hall at the
University of Florida (Gainesville, FL)
- Whitehead Biomedical
Research Building at Emory University (Atlanta, GA)
Prior to the advent of LEED certification, there was little
incentive and no uniform standard for recognizing green buildings. Today, there
are approximately 1,500 projects seeking LEED certification and over 120 LEED
certified buildings in the United States.
USGBC Membership
Founded in 1993, the USGBC has rapidly grown into a coalition
of over 4,800 companies and organizations within the building industry
promoting the design and construction of buildings that improve environmental
performance and economic return, while providing healthy places to live and work.
Membership is comprised of manufacturers, property owners, contractors,
developers, builders, architects, engineers, attorneys, nonprofit
organizations, state and local governments, federal and state agencies,
universities and research institutes, and professional societies.
A cross section of council members reads like a Who’s Who of
American innovation, development and technology. Members include: Armstrong
World Industries, Inc., Benjamin Moore & Company, Centex Construction
Company, Firestone Building Products, Hines, Honeywell International, Phizer,
Inc., Sherwin-Williams Company, Siemens Building Technologies, Target Stores,
Whirlpool, Duke University, Harvard University, and the cities of Atlanta,
Boston, Chicago, Los Angeles, New York, Orlando, Portland and Seattle.
Membership is not required for certification, however
membership does have its privileges, including significantly reduced
registration and certification fees for projects, participation in the creation
and implementation of LEED products, and the opportunity to attend LEED
training workshops and USGBC conferences. Individuals who demonstrate
proficiency in their knowledge of sustainable design are eligible to earn the
title of LEED Accredited Professional by passing the LEED accreditation exam.
Why Build Green?
The benefits from building green are compelling and include
energy savings, reduction of waste, decreased water use, improved indoor air
quality, and reduced operating and maintenance costs. Less tangible, but
equally important benefits include enhanced public image, increased worker
productivity, and improved employee morale, retention and health.
Green buildings are designed for cost effectiveness. Energy
costs are reduced through the integration of site orientation, on-site renewable
energy producing technologies (such as solar power and hydrogen fuel cells),
natural daylight and ventilation, energy saving technologies, light-reflective
materials, down-sized HVAC and other energy-saving technologies. Significant
savings are realized during the life of the building through other measures,
including smart building controls, low-maintenance materials, water-saving
equipment, salvaged construction debris and natural landscaping.
Employee productivity improves when soft features, such as
increased daylight, fresh air, access to pleasant views and personal
environment controls are incorporated into the workplace. Green concepts also
improve employees’ health and well-being by improving air quality, reducing
emissions and providing natural light. Nationally, the savings resulting from
green building is estimated to be in the billions of dollars. Green buildings
are “healthy” buildings and therefore reduce exposure to legal claims and
liabilities to the owner. “Sick building” cases are on the rise and insurance
companies have countered with rate hikes and mold exclusion clauses. As green
buildings become more common, insurance companies may recognize the benefits
and link lower premiums to higher environmental performance.
Green buildings create value for tenants, increase property
values and may be eligible for incentive programs. Churn costs can be reduced
significantly through flexible design features common to green buildings and
substantial savings are realized on a per square foot basis when energy
consumption is reduced. Green buildings offer easier maintenance and lower
operating costs, which translate to a higher market valuation. Communities
benefit from green buildings; therefore, many state and local governments are
encouraging LEED certification. Maryland, Massachusetts, New York and Oregon
were among the first states to offer tax credits for LEED certified buildings.
The cities of Portland, Oregon and Seattle, Washington have instituted a grant
program for costs related to modeling and commissioning, while Santa Monica,
California and Scottsdale, Arizona offer fast-track permitting for buildings
with high environmental performance. Another incentive, offered in Arlington
County, Virginia, provides preferred zoning considerations for LEED projects.
The LEED Rating System
The LEED Rating System is a point-based system that evaluates
the sustainability of a building based on the integration of green concepts.
Building projects earn one or more points by meeting or exceeding LEED criteria
outlined under six major categories: sustainable sites, water efficiency,
energy and atmosphere, materials and resources, indoor environmental quality,
and innovation and design process. A project must achieve at least 26 points to
receive LEED certification. There are four LEED certification levels:
1. certified (26-32 points)
2. silver (33-38 points)
3. gold (39-51 points)
4. platinum (52 or more points)
In August, the Durst Organization and Bank of America broke
ground on One Bryant Park, a 54-story skyscraper, projected to be the first
high-rise office building to achieve the USGBC’s Platinum rating. Heralded as
the world’s most environmentally responsible high-rise office building, the $1
billion project will be built principally from recycled and recyclable
materials and will capture and reuse all wastewater and rainwater. Consisting
of 2.1 million square feet, the crystalline skyscraper located in the heart of
Midtown Manhattan is scheduled for completion in 2008.
Not that long ago, green building was difficult to define and
rarely put into practice. The USGBC has created a reliable, practical method
for identifying green buildings and should be commended. Today, more than 3
percent of all new commercial construction projects are registered for LEED
certification. As more and more developers, contractors, cities and states
“LEED” by example, hopefully many others within the real estate industry will
follow.
The content of this article does not constitute legal advice and should not be relied on in that way. Specific advice should be sought about your specific circumstances.