REAL ESTATE
CEMBER 11-17, 2009
|
performance
standards
are
still
evolving
Green performance standards are still evolving
23
DECEMBER 11-17, 2009
REAL ESTATE
OUND BUSINESS JOURNAL DECEMBER 11-17, 2009
GGreen performance standards are still evolving
Failure to monitor
LEGAL
performance
and
reen
construction
the opPERSPECTIVE report theoffers
ORECAST
GREEN BUILDING JOBS
data
will
portunity to cut operational
costs,
rrequire the building
reduce greenhouse gas emissions
Green building could create an economic boom when the real estate market reowner to seek recerand improve the overall health of
covers, according to a study by the U.S. Green Building Council, which says the
tification every two
building occupants.years.
industry
generate 7.9 million jobs in the next four years.
nreen construction
the
Failure tocould
monitor
Givenoffers
the challenging
LEGAL
The
study,
released
in November at the council’s Greenbuild International
ng
Reporting
and
opportunity to cut operational
performance and
economic
environment,
PERSPECTIVE
Conference
and
Expo
in
Phoenix
and conducted with consulting
firm Booz Al-JOBS
ocosts, reduce
monitoring
buildgreenhouse gas
ORECAST
GREEN BUILDING
report the data will
Grant
frequently
queslen Hamilton,
said green building could generate about $554 billion in gross
cing performance
emissionsaand
improveasked
the overrequire
the building
Degginger
tion
is whether green
of building
occupants.
Green
building
couldwith
create
an economic
boomof
when
real estate marke
owner
to seek
recer- between
domestic
product
now
and 2013,
about
$396 billion
thatthe
coming
soon may become
the
challenging
economic
en-mandatory. Fortycovers, according to a study by the U.S. Green Building Council, which says
tification
every two
projects
are delivering
in wages.
s
nt, a frequently
asked
question
industry
couldfrom
generate
million 2
jobs
in the next
four employed
years.
years.
thestates,
promised
savings.and 12 federal
That would be a big
increase
the 7.9
roughly
million
people
ess
three
190
localities
er green
projects
are delivering
The
study, released
November
at the pumps
council’sabout
Greenbuild
Reporting and
nationwide
by the green
building
industry,inwhich
currently
$100 Internati
agencies
have
initiatives
that incorporate
Available
data
to date
mised savings. Available data to
Conference and Expo in Phoenix and conducted with consulting firm Boo
monitoring buildmillion into the GDP. len
Between
2000 and 2008, green building contributed $173
some
of
LEED
in building codes
areform
bothand
incomplete
Grantor
both incomplete
contradic-and
Hamilton, said green building could generate about $554 billion in g
ing performance
billion
to
the
economy.
required
performance standards.
contradictory.
Degginger
domestic product between now and 2013, with about $396 billion of that com
soon may become
“Our goal
is for theinphrase
roThe
federal
y released
byAthe
New government’s
Buildings
wages.‘green building’ to become obsolete, by making all
mandatory.
Fortystudy
released by Energy Star
building
retrofits green
and transforming
every
jobthe
in our
industry
intopeople
a
program
is being
expanded.
If suggests
the
Amerisuggests
green
buildings
are less
That would
be a big increase
from
roughly
2 million
emplo
three
states,
190
localities
and 12and
federal
the New
Buildings
Institute
green
green
job,”
said
Rick
Fedrizzi,
president,
CEO
and
founding
chairman
of
USGBC.
Clean
Energy
and
Security
Act
curfficientcan
than
initially
intended.
nationwide
by
the
green
building
industry,
which
currently
pumps
about
agencies
have
initiatives
that
incorporate
buildings are less energy efficient than inio percent
of the
121 LEED-NC
intovalue
the GDP.
Between
2000 and
green building
contributed
some
form of LEED in building
codeslooked
or
The study
atmillion
the total
of green
buildings
from2008,
the architects
to the
rently
under
consideration
in
Congress
tially
intended.
Forty-two
percent
of the standards.
certified
billion to the economy.
required
performance
laborers.
Anstruction)
becomes
law,buildings
a uniform performance
121
(New
in the labeling
study
fellLEED-NC
short of their
pro- Construction)
“Our goal is for
the phrase
‘green building’
to become
obsolete,
federalcertigovernment’s
Energy
Star has increasingly
Green
building
become
an industry
standard
as more
com- by makin
standard
describing
aThe
nonresified
buildings
included
in
the
study
fell
ergy
savings
after
occupancy.
building
and
retrofits
green
and
transforming
every
job
in
program
is
being
expanded.
If
the
Ameripanies adopt the USGBC’s Leadership in Energy and Environmental Design,our
orindustry in
n,
dential building’s energy efficiency and
ver, one local
study
performed
green job,” said Rick Fedrizzi, president, CEO and founding chairman of USG
can Clean
Energy
Security Act curshort
of their
projected
energy
savings
afterandLEED,
standards.
d
greenhouse
gas
emissions
would
be
ascadia Region
Green Building
The study looked at the total value of green buildings from the architects to
rently under consideration in Congress
occupancy.
— PHOENIX BUSINESS JOURNAL
implemented.
eached
a different conclusion. A
laborers.
becomes law, a uniform performance
However,
one
local
study
performed
by
Earlier
this
year,
the
Washington
Legof the 11 LEED-certified buildGreen building has increasingly become an industry standard as more c
labeling standard describing a nonresiBuilding
Counislature
acted toRegion
requireGreen
thedential
Washington
structed
inthe
theCascadia
Cascadia
Region,
panies adopt the USGBC’s Leadership in Energy and Environmental Desig
building’s
energy efficiency and
incorporate
some
of
LEED
in building
Monitoring
and isreporting
ontrouble
building
cilBuilding
reached
a different
conclusion.
Code
Council
to adopt A
Monitoring
and form
reporting
onstandards.
building
The
good news
that such
is
cludesState
Washington,
experienced
LEED,
greenhouse
gasmaemissions
would be
—the
PHOENIX
BUSINESS
JOUR
codes or required
performance
standards.
performance
appears
to be
wave of
the
avingsbuilding
in energy
andthe
water
implemented.
jority code
of
11 LEED-certified
buildings performance
nchanges
to begin
monitorappears
to be the wave
of the avoidable
with
modest
preparation.
tion when
comparedperformance.
toinprethiswhich
year, the
Washington
LegTheSimply
federal
government’s
Energywill
Star future.
Simply
obtainingiscertification
ing constructed
building
future.
obtaining
certification
While
the challenge
significant,will
the CascadiaEarlier
Region,
tion models.
islature acted
to require
the Washington
Utilities
begin maintaining
en-greater
noprogram
longer
be
promises
of green construction can
is sufficient.
being expanded. If the Ameri- the
no longer
be sufficient.
includesmust
Washington,
experienced
tudies
demonstrate
one
thing:
State
Building
Code
Council
to adopt
Monitoring
and reporting
on building
good news is that such trou
e
ergy
performance
data
on water
nonresidential
Greater
emphasis
on energy
effiindeed
be emphasis
achieved.The
can
Clean
Energy
and
Security
Act
curGreater
on energy efficiency
savings
in
energy
and
consumption
gh has been done to monitor enbuilding code changes to begin monitorperformance appears to be the wave of the avoidable with modest preparation
and qualifying public agency
buildings
to
ciency
building
performance
means
rentlyand
under
consideration
inSimply
Congress
be- certification
and building
means
that isa significa
models.
ormance. when compared to pre-construction
ing building
performance.
future.
obtaining
willperformance
While the
challenge
GRANT
a shareholder
at Seattle
whichGreen
theystudies
providedemonstrate
service noUtilities
later
than
that
a failure
achieve
percomes
law, ato
uniform
performance
labeling
failure toDEGGINGER,
achieve the
promised
performance
Both
one thing:
nited States
Building
mustNot
begin
maintaining
ennopromised
longer be sufficient.
promises
of green
constructio
law
Lane
PC
and chairman
of theover
firm’s
January
1, 2010.
formance
may
lead to
legal
disputes.
USGBC)
is taking
performance
ergy
performance
on nonresidential
Greater
emphasis
effiindeed
beLitigation
achieved.
standard
describing
a nonresidential
build-on energy
mayfirm
lead
to Powell
legal disputes.
enough
has
been done to
monitor
energydata
Construction
and Environmental
Group, foStarting
in 2011,
owners or
overefficiency
building
performance
is. Earlier this
year, the
USGBC
andoperators
qualifying publicLitigation
agency
buildings
to
ciency
and building
ing’s energy
and
greenhouse
gasperformance
building means
performance
issuesPractice
is increasing.
performance.
cuses
his
practice
on
construction,
environmental
a-a newofversion
largerofnonresidential
buildings
mustprovide service
sues
is
increasing.
The
consequences
of
its popular
GRANT
DEGGINGER,
aand
shareholder a
which they
no
later
than
that
a
failure
to
achieve
promised
perThe consequences of not allocating this
The United States Green Building Coun- emissions would be implemented.
law can
firmbe
Lane
Powellat
PCdegginand chairman of t
ting
Buildings
January
1, 2010.
may may
lead to legal
disputes.
commercial
disputes. He
reached
at system.
disclose
energyseeking
performance
data to
pronot allocating this riskformance
beforehand
Earlier
this year, theLitigation
Washington
risk beforehand
be severe.
cilrequired
(USGBC)
islessees
taking performance
and Environmental Practice G
ion arespective
now
to record
Startingseriousin 2011, owners
or operators
over Legisbuilding performance
is- may
gerg@lanepowell.com
orConstruction
206.223.7390.
buyers,
or lenders.
be severe.
lature
acted
to
require
the
Washington
State
The
good
news
is
suchontrouble
is environme
ly.
Earlier
this
year,
the
USGBC
launched
his practice
construction,
nal performance on a regular baof larger nonresidential buildings must
sues is increasing. The consequences of cuses that
Building
Code
Council
adopt building
avoidable with
preparation.
commercial
disputes. He can be reached at
o submit data
to the
USGBC
disclose
energy
performance
data
to pronotto
allocating
this risk beforehand
may modest
a new
version
offor
itsatpopular
LEED
rating
gerg@lanepowell.com
or 206.223.7390.
years. system. Buildings seeking
spective
buyers,are
lessees
or lenders.
severe. building
code
changes to beginbe
monitoring
While the challenge
is significant,
the
certification
promises of green construction can indeed
now required to record operational perfor- performance.
Utilities must begin maintaining en- be achieved.
mance on a regular basis and to submit data
ergy performance data on nonresidential
to the USGBC for at least five years.
Failure to monitor performance and re- and qualifying public agency buildings to GRANT DEGGINGER, a shareholder at Seattle
port the data will require the building own- which they provide service no later than law firm Lane Powell PC and chairman of the
January 1, 2010.
firm’s Construction and Environmental Practice
er to seek recertification every two years.
Starting in 2011, owners or operators of Group, focuses his practice on construction,
Reporting and monitoring building
performance soon may become manda- larger nonresidential buildings must dis- environmental and commercial disputes. He can
tory. Forty-three states, 190 localities and close energy performance data to prospec- be reached at deggingerg@lanepowell.com or
206.223.7390.
12 federal agencies have initiatives that tive buyers, lessees or lenders.
G
F
: 7.9M
F
: 7.9M
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