LEED Decertification
If you think LEED certification of a building is a one-time deal, think again.
USGBC’s latest version of LEED (version 3) establishes several new changes to LEED certification. Two of those changes are particularly significant. First, USGBC now requires building owners to submit operational performance data on a recurring basis as part of the LEED certification process. Building owners must provide the data for a period of at least five years. Second, and perhaps more important, LEED v.3 gives USGBC the right to decertify projects.
According to the USGBC, building owners can comply with this new data disclosure requirements in one of three ways:
1. Recertify the project on a two-year cycle using LEED for Existing Buildings: Operations & Maintenance;
2. Provide energy and water usage data on an on-going basis annually; or
3. Sign a release that authorizes USGBC to access the building’s energy and water usage data directly from the building’s utility provider.
As to decertification, LEED v.3 provides that certification "may be revoked" from any LEED project upon the USGBC's determination that a building does not comply with several minimum requirements, including environmental law and data disclosure requirements.
The impact of USGBC’s new enforcement right is unknown at this time. Indeed, USGBC has not yet decertified a project. However, one thing is clear: this new system of decertification may put your green investment at risk. Owners should have their attorneys draft contract provisions to protect against these risks during the design, construction, and post-construction stages of a project
The Green Building Bailout
Can green buildings save the economy? Maybe that’s a stretch, but green buildings do play a significant role in the country’s GDP. By 2010, the value of green building construction is projected to be $60 billion. Perhaps more important in these times, the government is recognizing that greening our schools, homes, and office buildings could put thousands of Americans back to work. According to the United States Green Building Council (“USGBC”), President Obama’s economic stimulus plan provides several billions of dollars for (1) modernization of public schools, with preferences or requirements for green improvement projects; (2) green improvements of federal buildings and developments; and (3) block grant funds for states, localities, and tribes for energy efficiency projects. (http://communicate.usgbc.org/newsletters/USGBC_Announcement/01-09.html.)
Given the public money flowing into green building, owners, contractors, and designers would be remiss in ignoring this opportunity.
Green buildings present a great opportunity, but it’s important to remember that this relatively new industry brings its own sets of challenges. To ensure maximum communication between project participants and a successful green project, green building contracts should:
- Clearly delineate each party’s role and responsibility in producing the green outcome or certification desired; wherever possible, the green “outcome” should be reduced to clear, objective and quantifiable standards.
- Require an integrated design process, which brings together all project participants early and often; and
- Mandate projects participants to develop procurement schedules for all green materials being placed into the facility.
