Momentum is building for ‘green’ construction

As energy prices rise, increasing numbers of business owners, their architects and contractors are considering “green construction.” Also called “sustainable building,” green construction maximizes energy efficiency while decreasing the negative effects of buildings on the environment and human health.
Some government agencies are continuing to provide financial and legal incentives and many cities, in an effort to limit strain on infrastructure and take advantage of incentives to limit greenhouse gases, are mandating that developers of certain-size facilities build green. The increasing benefits to green projects include quicker reviews and approvals, possible tax benefits, potential cost savings, and – in the long run – preserving the environment.
Green Numbers
According to the U.S. Green Building Council (USGBC), the value of green construction exceeded $12 billion for 2007, a 300 percent increase over its 2006 figure. The USGBC projects that by 2020, more than 30 percent of all new nonresidential construction will meet its Leadership in Energy and Environmental Design (LEED) standards. McGraw-Hill Construction Analytics projects the value of green building construction to increase to about $60 billion by 2010.
The country’s residential and commercial buildings account for 40 percent of U.S. primary energy consumption, according to 2005 data presented in the September 2007 U.S. DOE Buildings Energy Data Book. Green building, therefore, has the potential make a significant impact on reducing overall energy use and decreasing the U.S. carbon footprint.
Standards, Guidelines and Incentives
The nonprofit U.S. Green Building Council (www.usgbc.org) has become widely known for its Leadership in Energy and Environmental Design (LEED) program. The program enables a building owner, architect and/or contractor to register and qualify for LEED certification based on points awarded in categories covering sustainable sites, water efficiency, energy and atmosphere, materials and resources, and indoor air quality.
Other standards, guidelines and/or incentives are available from Green Globes (www.GreenGlobes.com), an online analysis tool; the U.S. Environmental Protection Agency’s Energy STAR and Building for Environmental and Economic Sustainability (BEES) programs (www.epa.gov); and a handful of others.
Rhode Island has required all new construction and renovations of public buildings to meet LEED Silver certification standards or higher since 2005. Among other measures, Massachusetts ordered all Commonwealth agencies involved in construction and major renovation projects over 20,000 square feet to meet the LEED certification standard, incorporating energy performance 20 percent better than the Massachusetts Energy Code and outdoor water reduction requirements verified by an independent third-party commissioning authority.
Many local governments are using tools such as LEED certification to reduce greenhouse gases and pressures on their infrastructure. Boston was the first city to require all public and private development projects over 50,000 square feet to meet the LEED standard for new construction.
In Rhode Island, nearly 40 projects have either obtained or registered for LEED certification. In Massachusetts, there are 379 certified or registered projects.
Legal Reasons for LEED Certification
The U.S. Environmental Protection Agency rates indoor air quality as one of the top five environmental health risks today, and poor indoor air quality – which affects the health and productivity of employees, tenants, students and educators – is an area of potential litigation for employers, commercial and residential building owners, schools and universities. Liabilities can result through workers’ compensation claims, intentional tort or violations of government regulations.
Indoor air quality is a key category for accumulating points toward LEED certification. A building that meets LEED indoor air-quality standards minimizes the potential for poor health effects. Meeting or exceeding the LEED standards, therefore, reduces the potential for litigation and, in cases where claims are made, may provide a strong defense against causation.
Green Payback
With higher energy costs, green buildings are offering shorter and shorter payback periods for their somewhat higher initial first costs.
Green design and construction is rapidly gaining momentum. The time for building owners, architects and contractors to consider going green is now. •
Doreen M. Zankowski is a partner in the construction and public contracts law group at Hinckley, Allen & Snyder LLP (www.HASlaw.com), a law firm of more than 120 attorneys who provide a full range of legal services and business advice to clients throughout the Northeast. Her practice focuses on construction and engineering law and real estate development.