What is LEED and why should people care about it?
The LEED Green Building Rating System is the most widely accepted green development rating system. It was created by the U.S. Green Building Council, a nonprofit organization, with input from a variety of building industry stakeholders. The council sought to establish a system that provides independent, third-party verification that a “green” development delivers high performance energy efficiency in an environmentally safe manner. More than 100 state and local governments, including Connecticut, have enacted green building laws that incorporate LEED rating systems.
Has LEED become the flavor of the month? Will it disappear as a priority for business as the economy shrinks?
LEED and the green building movement are here to stay. Not only is support for green building increasingly found at all levels of government, but businesses and educational institutions also are beginning to realize the economic benefits. According to the USGBC, buildings annually consume more than 60 percent of the nation’s electricity. Connecticut currently has the highest average cost of electricity in the continental United States. Green building practices can help businesses significantly reduce their operating expenses. Businesses are also realizing the intangible benefits of being viewed as socially responsible. Educational institutions are both teaching about the benefits of going “green” and implementing green practices.
Has a system such as LEED gone awry when it becomes necessary to get the lawyers involved?
Not necessarily. LEED buildings currently only make up about 3 percent of total new construction in this country. Therefore, many in the development industry may not be familiar with LEED, its requirements, and the certification process. Furthermore, as states have begun to either incentivize or mandate construction in accordance with LEED, new types of legal disputes between land owners, project developers, contractors, and design professionals have begun to develop. If a project does not attain a desired certification level from the USGBC, project developers could forfeit a tax credit they were counting on or possibility lose tenants.
Construction and design contracts should address who is responsible for fulfilling LEED- related obligations, what happens if a project doesn’t obtain LEED certification, what type and amount of damages would accrue, and who is liable for those damages and to what extent.
Will all projects eventually be built to LEED standards?
Connecticut law mandates that with the exception of residential buildings with no more than four units, any building constructed in Connecticut that is projected to cost more than $5 million must achieve LEED’s silver certification level for new construction and major renovation. However, this state law is unworkable in its current form. Because the state building inspector has yet to adopt regulations that implement the Connecticut LEED requirement, there is a question as to whether that requirement is currently in force.
Although the state law needs substantial amendment, the concept of green building is here to stay. Eventually, all building projects will be built to LEED standards or another green building standard.
