Whither the Green?

Several months ago my friend Shari Shapiro wrote a blog post Green Building Litigation--Whither the Lawsuits? Now many builders across the nation are wondering whither the green? An article by the Wall Street Journal, Green Builders Await the Green sheds light on a problem that those of us involved in the green building industry have been acutely aware of for some time...the government is dragging its feet on disbursing the green earmarked for green projects. The General Services Administration was allocated 5.5 Billion dollars under the American Recovery and Reinvestment Act, 2 Billion dollars of which was supposed to be distributed by the end of 2009. Now only two weeks away from the end of the year only 1.5 Billion of that 2 Billion dollars has been distributed! Even more striking, only 89 million dollars has been paid out thus far! So what exactly is taking so long for the green to reach the pipeline?

Are you a contractor who is vying for a part of the 4 Billion dollars that have yet to be allocated? Will 2010 see an explosion of green growth as project currently in the planning stage progress to construction? Will 2010 be the year of green litigation?

Green Building Labeling: A Spur For Litigation

Poorly performing buildings are perhaps the greatest threat to green building certification systems such as LEED. In an effort to combat these poorly performing buildings a new danger is being created.The USGBC wants to tackle poorly performing buildings by increasing the amount of data available and as part of that goal has laid out their  plan for doing so here.(PDF) LEED is certainly moving in the right direction by seeking to make more data available in regards to building's performance. However,  a building labeling system such as that being floated by both the USGBC and as part of the Waxman-Markey Climate Bill could derail the momentum of the green building movement and spur litigation.

To be effective a green building labeling system must cover ALL buildings and not just the newer, LEED certified buildings. Whether this label is an actual physical label attached to the building or a "virtual" label where information is stored online and made accessible over the web remains to be seen. A physical label would be less susceptible to fraud but also raise the potential for discrimination.

Preston over at Jetson Green summarized the framework for a labeling system under the the Waxman-Markey Bill as follow:

  • The Administrator of the EPA shall create the labeling program to apply to both the residential and commercial markets. 
  • The purpose of the labeling program is two-fold: (1) to enable and encourage knowledge about building energy performance of both owners and occupants, and (2) to inform efforts to reduce energy consumption nationwide. 
  • The Administrator is to consider already existing programs, such as Energy Star and the HERS index, while developing a model label. 
  • The Administrator will create a report telling Congress which building types have measurement protocols and labeling requirements with energy performance data (and which don't). 
  • The Administrator is to propose measurement protocols and detail how to complete performance labels.
  • The Administrator will provide a final rule detailing measurement protocols and requirements for applying the protocols. 
  • The Administrator shall propose a model building energy label within one year after the date of enactment, and the label will show achieved performance (and, interestingly, will not preclude designed performance data).  
  • The Administrator will then publish a final rule containing the label applicable to covered projects. 
  • The Administrator will coordinate with Zero Net Energy Commercial Buildings Initiative to provide labeling demonstration projects for all sorts of different building types. 
  • The Administrator will work with state energy offices or other state authorities to implement the program, and will also work with these officials to encourage use of the labeling program at the local and county level. 
  • States are to implement the label in such a way that the information is available to owners, lenders, tenants, occupants, or other relevant parties that can utilize the information.
  • Three years after the date of enactment, the Administrator will report to Congress on the effectiveness of the program and the need for any legislative changes. 
  • The Secretary of Energy and the Administrator will use the program in their agencies and try to get other agencies to implement the label. 

 A building labeling system will surely create litigation. Whether the litigation will involve the actual labels themselves or the methodology and regulations established by the government in the label's implementation remains to be seen. What are your thoughts?

A big thanks to Preston and Jetson Green for their excellent coverage of this topic.

Chinese Drywall: The New Asbestos?

I have previously written about Chinese drywall from a quality control and construction standpoint and predicted that if the tests being conducted by the EPA or independent labs were able to demonstrate that the drywall was responsible for health problems it would truly open the litigation floodgates. In light of the Chinese drywall litigation being led in large part by Scott Wolfe and a conversation I had with Mark Rabkin of Althans Insurance I have been pondering the similarities between Chinese drywall and asbestos.

Unlike asbestos whose hazardous properties were unknown and whose dangerous effects have a relatively delayed onset the problem with the Chinese drywall was discovered quickly. While the exact health consequences of exposure to Chinese drywall have not been conclusively demonstrated I personally am fairly certain that anything that can corrode and eat through metal electrical, and air conditioning components cannot be good for the body. Individuals have complained of rashes, bloody noses, and respiratory infections.

Whether or not Chinese drywall poses short or long term health effects remains unknown at the current time. When does the statute of limitations start running for an physical injury stemming from Chinese drywall? Is Chinese drywall a one of a kind problem or is the U.S. housing industry going to see more building material problems as the result of outsourcing?

The Chinese drywall litigation has been placed on the fast track which the judge seeking to resolve the issue as soon as possible.

"Fast-tracking is an understatement. It's a rocket docket. And he means business," said attorney Ervin Gonzalez, a class-action specialist with Colson Hicks Eidson in Coral Gables, Fla., who also is on the plaintiff steering committee. "He wants the first case tried by the end of the year, and he wants an inspection of every home. He wants to be able to get to the bottom of the problem."

For an interesting and well written article examining the drywall problem and the problems it poses to homeowners please refer to the following article by the Wall Street Journal.