Green Buildings, What are green buildings and how are they more sustainable in the long run

What are green buildings

1. GREENBUILDING
PresentationtoEastKingCountyBar
Association
September23,2009
JimGreenfieldandAlanMiddleton

2. Agenda
■OverviewofGreenBuilding
■GreenBuildingStandards
■GreenBuildingIncentives
■GreenBuildingIssues–Leasing
■GreenBuildingIssues–Designand
Construction

3. Whatisa“GreenBuilding”
“Green”Buildingsarehigh
performancestructuresthatalso
meetcertainstandardsforreducing
naturalresourceconsumption

4. Whatisa“GreenBuilding”?
■“Green”or“Sustainable”buildingsare
characterizedby:
■efficientmanagementofenergyandwaterresources
■managementofmaterialresourcesandwaste
■restorationandprotectionofenvironmentalquality
■enhancementandprotectionofhealthandindoor
environmentalquality
■reinforcementofnaturalsystems
■analysisofthelifecyclecostsandbenefitsofmaterials
andmethods
■integrationofthedesigndecision-makingprocess

5. Whatisa“GreenBuilding”
■“Metrics”forsuch“green”
benefitsarearticulatedandcertified
byLEED,BuiltGreenorother
organizations
■Greenstandardsmeasuredifferent
environmentalqualitiesofbuildings
■Eachhasadifferentemphasisand
purpose

6. Whatisa“GreenBuilding”?
■GreenBuildingstandardsinclude:
■LeadershipinEnergyandEnvironmentalDesign
(LEED)
■GreenGlobes
■ModelGreenHomebuildingGuidelines
■BuiltGreen
■EnergyStar
■LivingBuilding

7. Whygo“Green”?
■Greenmakesbusinesssense
■Increasedflexibilitytoallowforlongerbuilding
andTIusefullifeandreuseofmaterials
■Improvedbuildingperformance
■Increasedrevenue(higherrents/salesprice,
improvedproductivity,fewer/shorter
vacancies)
■Lowercost(utilities,costsofconversion)

8. WhyGo“Green”?
■Going“Green”isthe“rightthing”
■reducecarbonconsumption,
■energyindependence,
■encouragecommunity,
■preservenaturalsystems

9. Is“Green”realorjustamarketing
fad?
■Doescertification
underLEEDorany
oftheother
“Green”rating
systemsbring
meaningful
environmentalor
economicbenefit?

10. Green–RealorJustMarketing
■LEEDhasbeenwidelycriticized:
■Focusisnotonkeyfactorsincurrentclimate
changecrisis–CO2andenergy
■Looksonlyatprescriptivedesign,not
measurableperformance
■Favorsbellsandwhistles,notbasicgood
design
■Toocomplicated,bureaucraticandexpensive

11. Green–RealorJustMarketing
■LEEDnotnecessarilyvaluedin
marketplace
■2009RICSStudy:LEEDratingdidnot
statisticallyimproverentswhileEnergy
Starratingassociatedwithrentshigher
by3.3%

12. “DefiningSuccessTogether”
■Becauseofvariousstandardsand
outcomes,itisimportanttoworkwith
clienttounderstandjustwhatclient
wantstoachieveinundertakinga
“greenbuilding”project

13. “DefiningSuccessTogether”
■GreenBuildinglegalissuesrevolvearound:
■Identifyingparties’“values”andnegotiating
agreementsthatresultin“wins”
■Allocatingrisks,benefits,burdensand
responsibilities
■Anticipatingandavoidingunnecessarytrouble

14. OverviewofGreenBuilding
■GreenBuildingStandards
■GreenBuildingIncentives
■GreenBuildingLeasing
■GreenBuildingDesignand
Construction

15. GreenBuildingStandards
■LEED–LeadershipinEnergyand
EnvironmentalDesign
■AdministeredbytheU.S.Green
BuildingCouncil
■Voluntary,consensus-basedsystem

16. LEEDBasics–WhyLEED?
■The“builtenvironment”accounts
forapproximately:
■40%ofglobalconsumptionofrawmaterials
■37%ofprimaryU.S.energyconsumption
(operations)
■68%ofU.S.electricityconsumption
■12%ofU.S.potablewaterconsumption
■40%ofU.S.soldwastestream
■35%ofU.S.carbondioxideemissions

17. LEEDBasics–WhyLEED?
■Advertisedas:
■Reducingenvironmentalimpact
■Reducingoperatingcosts
■Increasingoccupantcomfortandproductivity
■Otherpotentialbenefits:
■Higherrents?
■Highersalesprice?

18. LEEDBasics–RatingSystems
■NewConstruction
■ExistingBuildings:O&M
■CommercialInteriors
■CoreandShell
■Schools
■Homes

19. LEEDBasics–PilotRatingSystems
■NeighborhoodDevelopment
■ bycreatingcompact,walkable,
vibrant,mixed-useneighborhoodswithgood
connectionstonearbycommunities.
■
■
■
.
■8LEED-NDPilotprojectsinWashington
■Including--ThortonPlace,SouthLakeUnion

20. LEEDBasics–PilotRatingSystems
■Retail
■HealthCare
■IncooperationwiththeGreenBuilding
forHealthCareratingsystem

21. LEEDBasics
■LEEDupdatedin2009
■Harmonization–priorsystems,withwisdom
fromCreditInterpretationRulings,consolidated
andaligned
■CreditWeightings–creditshavedifferent
weightdependingonhowmostaffectenergy
efficiencyandCO2reduction
■Regionalization–creditsprioritizedbasedon
regionallyimportantenvironmentalissues

22. LEEDBasics–RatingSystem
Example(LEED2009-NC)
Category Prerequisites Credits Possiblepoints
SustainableSites(SS) 1 8 26
WaterEfficiency(WE) 1 3 10
Energy&Atmosphere(EA) 3 6 35
Materials&Resources(MR) 1 7 15
IndoorEnvironmentalQuality(EQ)2 8 15
Innovation&DesignProcess(ID)None 2 5
RegionalPriority None 1 4

23. LEEDBasics–CategoryExamples
■SustainableSites(SS)
■SiteSelection
■DensityandConnectivity
■BrownfieldRedevelopment
■AlternativeTransportation
■SiteDevelopment–Habitat/OpenSpace
■StormwaterControl
■Reductionof“HeatIsland”Effect
■LightPollutionReduction

24. LEEDBasics–CategoryExamples
■WaterEfficiency
■WaterUseReduction
■WaterEfficientLandscaping
■InnovativeWastewaterTechnology

25. LEEDBasics–CategoryExamples
■Energy&Atmosphere(EA)
■EnergyEfficiency
■RenewableEnergy
■BuildingCommissioning

26. LEEDBasics–CategoryExamples
■Materials&Resources(MR)
■BuildingReuse
■ConstructionWasteManagement
■MaterialsReuse
■RecycledMaterials
■RegionalMaterials
■RapidlyRenewingMaterials
■CertifiedWood

27. LEEDBasics–CategoryExamples
■IndoorEnvironmentalQuality(EQ)
■Ventilation
■Low-EmittingMaterials
■ControllableSystems:Lighting-Thermal
■ThermalComfort
■Daylight&Views

28. LEEDBasics–Certification
■Certificationis
dependentupon
numberofpoints
earned
■LEED-NC100base
points+6Innovationin
Designand4Regional
Prioritypoints

29. LEEDBasics–Certification
2009LEED-NCCertificationLevels
Certified: 40-49points
Silver: 50-59points
Gold: 60-79points
Platinum: 80pointsand
above

30. LEEDBasics
2009MinimumProgramRequirements
1.Mustcomplywithenvironmentallaws
2.Mustbeacomplete,permanentbuildingor
space
3.Mustuseareasonablesiteboundary
4.Mustcomplywithminimumfloorarea
requirements
5.Mustcomplywithminimumoccupancyrates
6.Mustcommittosharingwhole-buildingenergy
andwaterusagedata
7.Mustcomplywithaminimumbuildingareato
sitearearatio

31. LEEDBasics
■Mustcommittosharingwhole-building
energyandwaterusagedata
■foraperiodofatleast5years
■inafree,accessible,andsecureonlinetoolor,
ifnecessary,takinganyactiontoauthorizethe
collectionofinformationdirectlyfromserviceor
utilityproviders
■mustcarryforwardifthebuildingorspace
changesownershiporlessee

32. LEEDBasics
■Decertification
■MPR“Preamble”containsthis
“Note”:
■“CERTIFICATIONMAYBEREVOKED
FROMANYLEEDPROJECTUPON
GAININGKNOWLEDGEOF
NON-COMPLIANCEWITHANY
APPLICABLEMPR”

33. GREENGLOBES
■Environmentalimpactsassessedona
1,000pointscaleinmultiplecategories:
■Energy
■IndoorEnvironment
■Site
■Water
■Resources
■Emissions
■Project/EnvironmentalManagement

34. GreenGlobes
■Afterachievingathresholdofatleast35%
ofthetotalnumberof1,000points,new
andexistingcommercialbuildingscanbe
certifiedfortheirenvironmental
achievementsandsustainabilityby
pursuingGreenGlobescertificationthat
assignsaratingofonetofourglobes

35. GreenGlobes
■TwoCategories
■NewConstruction
■ContinualImprovementofExisting
Buildings

36. GreenGlobes
■NewConstruction–2Stages
■StageI--reviewofconstructiondocuments,
workingdrawings,landscapedesigns,energy
analysis,LCAdocumentation,commissioning
reports,etc.
■StageII--onsitewalkthrough,reviewof
additionaldocumentation,andinterviewofkey
teammembers.

37. GreenGlobes
■ContinualImprovementofExisting
Buildings
■extensivedocumentationreviewandan
on-sitevisitwithawalkthroughand
interviewoffacilitymanagerandchief
engineer

38. EnergyStar
■AprogramoftheUSEnvironmental
ProtectionAgency
■Focusesonenergyconsumption
■Differenttoolsforresidentialand
commercialbuildings

39. EnergyStar--Residential
■HomeEnergyRatingSystem(HERS)Indexestablishedby
theResidentialEnergyServicesNetwork
(http://www.natresnet.org/).
■Homemeetingthe2006InternationalEnergyConservation
Codescores“100”andanetzeroenergyhomescores“0”
.
■Each1-pointdecreaseintheHERSIndexcorrespondstoa
1%reductioninenergyconsumptioncomparedtotheHERS
ReferenceHome.
■ToqualifyforEnergyStar,ahomeinWashingtonState
(ClimateZones4,5or6)mustachieveaHERSIndexscore
of85orlower.

40. EnergyStar-Commercial
■“NationalEnergyPerformanceRating
System”--scaleof1-100.
■Abuildingthatscores75oraboveonthis
scale(placingitsenergyperformance
amongthetop25percentamongsimilar
buildingsnationwide)canearnanEnergy
Starlabel.
■EnergyStaralsooffersanenergy
managementtool,PortfolioManager,on
theenergystar.govwebsite.

41. Government
Requirements/Incentives
■Approaches
■Mandatingcompliancewithspecific
standardslikeLEED
■Requiringmeasurementandpublicreporting
ofenergyuseonanon-goingbasis
■Incentingcompliancewithstandardsby
offeringbonuses,expeditedprocessing,etc.
■Governmentprocurement:Structuresofat
leastacertainsizemustcomply
■Adoptionofcodes

42. GovernmentalGreenRequirementsand
Incentives
■Federal
■taxincentivestotheprivatesector
■requirefederalagenciestoadoptgreen
buildingprinciples

43. FederalGreenIncentives
■EnergyPolicyActof2005(amended
2008)--taxdeductionofupto$1.80
persquarefootforcommercial
buildings,placedinserviceonor
beforeDecember31,2013,that
achieved50percentenergyreduction.

44. FederalGreenIncentives
■ExecutiveOrderNo.13423(2007)-
requirefederalagenciestoreduce
greenhousegasesbyreducing
energyusageandtoreducewater
usagebytargetedamountsby2015

45. FederalGreenIncentives
■EO13423alsorequiresfederalagenciesto
complywiththe2006“FederalLeadership
inHighPerformanceandSustainable
BuildingsMemorandumofUnderstanding”
regardingenergyefficiency,sustainable
buildingdesignandpractices,siting,high
performancebuildings,recyclingmaterials,
reuseofbuildingmaterials,water
conservation,indoorenvironmentalquality,
andthelike.

46. FederalGreenIncentives
■2009AmericanReinvestmentand
RecoveryAct
■$4.5billiontotheU.S.GeneralServices
Administration(“GSA”)forgreenbuilding
projects
■$2.7billioninformulagrantstostates,
territories,localgovernments,andIndiantribes
undertheEnergyEfficiencyandConservation
BlockGrant(EECBG)Program
■More

47. FederalGreenIncentives
PendingWaxman-Markley
,H.R.2454callsforthe
creationofanationalbuildinglabelthatwouldmeasureand
disclosetheenergyperformanceofcommercialproperty
andhomes.
■Tworatings--aperformancegradebasedonutilitybillsand
otheroperatingcharacteristics,andanassetgrade(also
knownasadesigngrade)thatwouldassessabuilding’s
energyefficiencypotentialbasedoncomputerenergy
models.
■NewlabeltobebasedontheEnergyStarprogram,aswell
astheHERSIndex,andprogramsattheDepartmentof
Energy

48. WashingtonStateGreenIncentives
■Focusongreenconstructionofnewand
remodeledstateandstatefundedfacilities.
■Ch.39.35DRCW
■state-fundedprojectsover5,000squarefeetachieveLEED
Silvercertificationorbetter.
■newpublicschoolconstructionmustbeLEEDSilveror
certifiedthroughtheWashingtonSustainableSchoolDesign
Protocol
■CTEDrecentlyestablishedtheEvergreenSustainable
DevelopmentStandardtocomplywithRCW39.35D.080for
affordablehousingprojectsfundedfromtheWashington
StateHousingTrustFund(HTF)underChapter43.185RCW.

49. WashingtonStateGreenIncentives
■EfficiencyFirst!Act(SB5854,Chapter423Lawsof2009)
■Requiresutilitiestotrackanddiscloseenergyusedataforlarge
publicbuildingsandprivate,non-residentialbuildingsusingthe
EnergyStarPortfolioManagerdataandratings.
■TrackingistobeginonJanuary1,2010anddisclosureisto
beginbyJanuary1,2011forbuildingsgreaterthan50,000
squarefeetandbyJanuary1,2012forbuildingsgreaterthan
10,000squarefeet.
■BuildingownersmustdisclosetheEnergyStarPortfolio
Managerdataandratingstoprospectivebuyers,lesseesor
lendersforthemostrecentcontinuouslyoccupied
twelve-monthperiod.
■CTEDtorecommendtothelegislaturebytheendof2009a
methodologytodetermineanenergyperformancescorefor
residentialbuildings.

50. LocalGreenIncentives
■KingCounty
■KingCountyExecutiveOrderFES9-3
(AEP)(Oct.25,2001)requiresallnew
publicconstructionprojectstoseekLEED
certificationandencouragesthe
applicationofLEEDcriteriatobuilding
retrofitsandtenantimprovements.

51. LocalGreenIncentives
■KingCounty
■GreenBuildingGrantsProgram
■$25,000forLEEDGoldand$35,000forLEED
Platinumcertificationfornewconstructionormajor
renovationinthecounty,butoutsidetheCityof
Seattle.
■Specialconsiderationwillbegiventoprojects
incorporatinglow-impactdevelopment(LID)
strategies,andtoprojectspursuingLEEDforExisting
Buildings(LEED-EB)andLEEDforExistingBuildings:
Operations&Maintenance(LEED-EB:O&M)
certification
■2009grantapplicationperiodclosesSeptember30

52. LocalGreenInitiatives
■KingCounty
■BuiltGreenincentiveforsingle-family
residentialandcommunitydevelopment
projectsthroughoutSeattleandKingCounty
includesgrantsrangingfrom$2,500fora4-star
singlefamilyprojectto$20,000fora10ormore
unit5-starproject.(2009GrantApplication
periodclosedSept.18)
■Special“GreenTrack”throughthepermitting
processwithateamtrainedinLEEDandBuilt
Greenstandardsplus3-15“free”project
staffhoursbasedonBuiltGreenstatus

53. LocalGreenIncentives
■Seattle
■RequiresLEEDSilvercertificationofallcity-ownedprojectsand
renovationsover5,000squarefeet.
■EncouragesprivateconstructiontoincorporateLEEDdesign
standardsintonewandexistingbuildingsbyprovidingvarious
economicincentivesforenergyandwaterconservation.
■Givesaheightordensitybonustocommercialorresidential
projectsthatachieveatleastLEEDSilvercertificationand
contributetoaffordablehousing.
■SeattleCityLightalsooffersgrantstotalingupto60percentof
thecostofqualifyingenergy-economizingimprovementssuch
aslighting,HVAC,controls,transformers,insulation,window
glazing,andprocessimprovements.

54. LocalGreenIncentives
Seattle“GreenBuildingCapital
Initiative”
■proposedforCommercialand
Multi-Family(ordinanceexpectedthis
fall)
■Mandatorymeasurementanddisclosureof
EnergyStarPortfolioManagerenergy
performancebenchmarkingdataand
ratings.

55. LocalGreenInitiatives
■Seattle“GreenBuildingCapitalInitiative”
■Beginningin2010forcommercialbuildingslargerthan50,
000squarefeet,multifamilybuildings20+units.
■Beginningin2011forcommercialbuildingslargerthan
25,000squarefeet,multifamilybuildingsbetween10-19
units.
■Beginningin2012forcommercialbuildingslargerthan
10,000squarefeet,multifamilybuildingsbetween5-9
units.
■ReportedthroughEPAsecureserverwithautomatic
downloadstotheCity

56. GreenBuildingIssues-Leasing
■LandlordsandTenantsmayhave
competingeconomicinterestsin
“GreenBuilding”
■Landlordswanttorecoverhighercosts
ofGreenBuilding
■Tenantswanttobenefitfromlower
operatingcosts

57. GreenBuildingIssues-Leasing
■Keyistoalignrespectivecontrolwith
responsibilityandcostswithbenefits
■E.g.–Landlordresponsiblefor
maintaining“green”performanceof
ShellandCore;Tenantresponsiblefor
“green”performanceofTIsand
equipment

58. GreenBuildingIssues-Leasing
■BothLandlordandTenantshould
covenantnottoactinmannerthat
jeaopardizes“green”certifications
orgrantsorfinancing

59. GreenBuildingIssues-Leasing
■Besttoestablishexpectationsand
responsibilitiesinLetterofIntent–
includingapplicable“Green”
certificationstandard
■Leaseformsshouldcomplementto
applicablestandard

60. GreenBuildingIssues-Leasing
■Widerangeofdocumentation
■Simple“intendtocomplywithLEED”
paragraph
■“GreenAddendum”
■ModelGreenLeases–e.g.BOMA
■“Green”WorkLetter

61. GreenIssues–Design/Construction
■Identifyingclientgoals
■Contractingtoachievethosegoals
■Liabilitywhengoalsarenotmet
■Insuringagainstfailure
■Commissioning/ongoing
maintenanceandoperations

62. GreenIssues–Design/Construction
–IdentifyingClientGoals
■ Whatisthedesiredresult?
■ LEEDcertification?
■ Wherearethecreditstobegained?
■ Whatlimitationsexist?Existingland-usecodes,CC&Rsmay
limitdesignchoices
■ Taxcredit?
■ Timing:Ifthetaxcreditrequiresplacingthebuildinginserviceby
acertaindate,howwillthatdatebemet?
■ Moral/ethicalvaluesofsustainability?Howtodefinethem?
■ Cost
■ Anyprojectinvolvestradeoffs–noclientwillwanta“green
result”ifitscostcannotbejustified

63. GreenIssues–Design/Construction
–ContractingModels
■Traditionalmodel
■Ownercontractsfordesign,thencontracts
separatelywithcontractorforconstruction
■Design/Build
■Ownercontractswithoneentitytoprovide
designandconstruction
■IntegratedDelivery
■Similartodesign/build

64. GreenIssues–Design/Construction
–DesignContractIssues
TraditionalModel:Ownercontractswitharchitect
■Needtobesuredesigncontractembodiesanddoesnot
hinderclientgoals
■Cost:Mayneedmoreextensivedesigndevelopmentphase
tomoreclearlydefinegoals,costs,tradeoffs
■Architectualstandardofcare
■Typicalcontractsdonotplaceburdenonarchitecttoachieve
greenresultsinavacuum–needspecificundertaking
regardingdesign,timingtomeetclientgoals
■AIAcommitsanarchitectonlyto“consider”greenissuesand
discussthemwithowner,unlessthearchitectagreestoassume
agreaterrole

65. GreenIssues–Design/Construction
–DesignContractIssues
■Insurance
■Typicalinsurancedoesnotcovercontractual
undertakings(e.g.breachofwarranty,breach
ofcontract)
■Needtodefinearchitect’sstandardofcare
suchthatfailuretodesigngreenresultresultsin
breach
■Green-specificinsuranceproductsarelimited
tonon-existent

66. GreenIssues–Design/Construction
–DesignContractIssues
■Typicalcontractclausesmaylimit
owner’srightsintheeventoffailure
■AIAdocumentscontainmutualwaiver
ofclaimsforconsequentialdamages
■Isthelossofataxcreditduetodefective
design“consequentialdamages”?
■Lostanticipatedincreaseinrents?
■Lostfinancing?

67. GreenIssues–Design/Construction
–DesignContractIssues
■Whoisresponsibleforadministeringthe
LEEDprocess?AIAFormB214
■Architectundertakesspecificduties
■Maynotbeadequate,dependingon
clientgoals

68. GreenIssues–Design/Construction
–ConstructionContractIssues
■Identifyclientgoals–towhatextentdoes
achievingthemdependuponthecontractor?
■Achievingthedesign
■Timing:Qualifyingforataxcreditmayrequireplacingthe
buildinginservicebyadatecertain;whoassumesthe
liabilityforlatecompletion?
■Constructionprocess:SomeLEEDcreditsapplytothe
constructionprocess,likerecylingofbuildingmaterials,
generallycontroloftheenvironmentalimpactsofthe
constructionprocess

69. GreenIssues–Design/Construction
–ConstructionContractIssues
■Achievingtheresult:Doesthecontractor
clearlyundertakeworkthatisnecessaryto
achievetheresult?
■Timing
■Constructionprocess
■Substitutions
■Commissioning

70. GreenIssues–Design/Construction
–ConstructionContractIssues
■Howdoesthecontractallocatetheriskof
failure?
■Considerwarranties
■Considerliquidateddamages/performance
bonuses
■Ifgreengoaldependsoncompletionbyacertain
date,thecontractshouldsaysoandinclude
damages/incentives
■Doothercontractclausespotentiallyimpairor
changetheallocationofrisk?
■Consequentialdamageslimitation

71. GreenIssues–Design/Construction
–LessonsfromtheTrenches
ShawDevelopmentv.SouthernBuilders
■$7.5million,23-unitcondoprojectinMarylandcompletedin
2006
■DesiredLEEDSilverrating
■Contractorbroughtsuitforbalanceowed
■Ownercounterclaimedfordamagesof$635,000inpart
relatingtolosttaxcreditswhencontractorfailedtocomplete
intimetorecoverthem
■Settledforundeterminedsum
■SpecificationincludedLEEDrequirements,butcontract
documentswerenotclearastoundertakingofthe
contractor
■Counterclaimallegedbreachofcontractandnegligence

72. Conclusions
■GreenBuildingCertificationspresentamoving
target
■Criticaltoworkwithclientsearlyandcontinuously
todeterminegoalsandobjectives
■Focusonobjectiveperformancemeasuresand
clearallocationofrisksandresponsibilities
■Greenbuildingissuesarepresentedinnearlyevery
phaseofdevelopment–lookforopportunitiesto
improveoldpracticesand“boilerplate”
■Don’tgetboggeddown,butdon’tbeafraidto
innovate