Green Building & Environmental Trends : Green Building & Construction LEED AP Consulting : Rich Cartlidge : Environmental Trends, Urban Development

I have often written about the environmental benefits of green buildings. However, this past week the Los Angeles Times published an article addressing how California environmentalists fought to block California from implementing a mandatory green building code. Since 2004 all new state buildings in California have been required to obtain LEED Silver certification. The Governor of California in an effort to further green building was poised to pass a green building code which would would slash water use, mandate the recycling of construction waste, cut back on polluting materials and step up enforcement of energy efficiency in new homes, schools, hospitals and commercial buildings statewide.  The proponents of the green building code had high hopes and David Wells, executive director of the California Building Standards Commission said: "It is going to change the whole fabric of how buildings are built by integrating green practices into our everyday building code""The rest of the nation will be looking at what we have done." The environmentalists, who one would assume would support such an initiative fought adamantly to block its passage stating that it would create confusion in the marketplace by allowing buildings to be certified without the requirement of third party verification which is required by the USGBC and its LEED certification system. Is this the first of many challenges to be brought by environmental groups that new green building codes essentially will amount to claims of "greenwashing?"

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This past week Elisa Wood of Renewableenergyworld.com wrote a very interesting blog piece focusing on the state of the commercial real estate market and the perceived costs and benefits of green buildings. Ms. Wood focused on what she calls the "ghosts" of green building, the perceived costs of green expenditures which in reality do not actually turn out to be true her post is based on a recent report released by Ceres which can be downloaded here.

The report established the methods by which both direct and indirect property investors can reduce their portfolios energy usage and increase its value:

• Establish a baseline measuremen tof energy use across portfolios
• Prioritize opportunities for energy reduction using a sequenced approach from ENERGY STAR that focuses first on the worst- performing properties that provide the lowest-cost, easiest opportunities for cutting energy use. Such sequencing includes:
• Retro-commissioning buildings, which involves testing building systems to ensure they are operating optimally
•  Upgrading lighting – Reducing electricity load demand of occupants and equipment – Upgrading and optimizing air distribution systems – Upgrading and optimizing heating and cooling systems
• Benchmark on a regular basis ongoing energy use against that baseline For indirect property owners who invest in real estate related funds or stock ownership:
• Seek funds with a specific mission of creating or acquiring energy efficient properties
• Seek funds with specific goals for energy efficiency improvements in existing holdings
• Use proxy voting and direct engagement to address energy efficiency with asset managers and public companies

The report contains very interesting material for all involved in the green building industry and is worthy of a quick read. The findings are very encouraging for the future of the industry and show that people are starting to appreciate the benefits that green buildings can provide.

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     Green buildings are unique in many ways but share one common trait with traditionally constructed buildings, without tenants they are of little use to their owners. With tenants comes the need for leases and with green buildings a green lease is a necessity. A green lease is needed from the owner's perspective to ensure that their investment is protected and from the tenant's perspective to ensure that the owner constructs and operates the building in a manner that ensures energy efficiency. Traditionally there have been two types of leases used in the leasing of commercial property, triple net leases and gross leases. A triple net lease is a lease where the tenant pays their monthly base rent, a portion of the building's energy costs, real estate taxes and insurance costs proportionate to their percentage occupancy of the building, and their proportionate share of the buildings public area maintenance. A triple net lease provides no incentive to the owner to increase energy efficiency as the tenants are already paying these costs. On the other hand a gross lease where the tenant pays a monthly rent which covers the tenants insurance, real estate taxes, and public area maintenance.

     In buildings which utilize a gross lease the owner would be well advised to take measures to increase the buildings energy efficiency as they will directly benefit from any savings. However, owners continue to fight measures such as those proposed by New York City which would require energy efficiency increases.

So what exactly should a green lease address? The following list while by no means exhaustive provides a good starting point for owners considering implementing green leases:

1. Require tenants to use energy efficient lighting fixtures which include occupant sensors and not to override these sensors if installed by the owner.
2. Require tenants to use low flow fixtures to reduce water use.
3. Permit entry by the owner's agents to monitor building systems on an ongoing basis to ensure that they are operating at their highest possible efficiencies.
4. Require tenants to utilize low Volatile Organic Compound (VOC) paints, adhesives, and cleaning supplies to ensure the highest possible indoor air quality.
5. Implement waste management policies which incorporate recycling programs to minimize the amount of waste sent to landfills.
6. Require that any tenant build-outs are conducted in a manner which will permit upgrading of building systems in the future if more energy efficient systems become available.
7. Ensure that provisions are in place which clarify what the owner's and tenants rights and cost burdens will be if energy efficiency measures are implemented in the future which either interfere with the tenant's use and enjoyment of the building or which require large capital expenditures by the owner but which pass tangible financial benefits onto the tenant.
8. A clause which allows the owner to terminate the lease if the tenant's use of the building is inconsistent with its design as a sustainable building.

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Today as I drove around Maryland with my mom running day after Christmas errands we passed a development called Spencer's Crossing and my mom asked if I would like to take a look. At first I was slightly perplexed as to why I would want to look at Maryland real estate, but my mom quickly changed my mind by telling me the development was Maryland's first LEED for Homes community! The community is the first in the nation to receive LEED Gold status and Certified Green status by the GE Ecoimagination program.

While the developers make some lofty promises such as 53% reduced heating and cooling costs they back these claims up with two guarantees, which for the lawyers among us translates to an enforceable promise. The two guarantees are unique and perhaps just what the green building movement needs to catch on in the mid-atlantic. The first guarantee is a heating and cooling guarantee which calculates the amount of energy needed to heat and cool the home and then guarantees that your costs will not exceed that amount. The second guarantee a comfort guarantee which assures that the homes temperature will not vary by more than 3 degrees from the center of any conditioned room. I can tell you based on my experience that the home was very well constructed and that I was unable to feel any noticeable drafts.

However, the most impressive feature of these homes was not their excellent construction or luxury features but rather their 60% reduction in property taxes offered as a result of the Baltimore County tax credit which is guaranteed for a period of 3 years and perhaps longer if it continues to be funded. The tax credit is Codified in the Baltimore County Code 11-2-203.2.

Do you think tax credits are the way to promote green building or are performance guarantees such as those provided by the builder of this community the better way to go?

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I consider myself truly fortunate to be a resident of Tampa, Florida particularly during times such as this past week when the North Eastern Seaboard where I grew up is covered in snow. The state of Florida is likely associated by most of my readers with Disney World, golf, and vacation. However, what many people don't know is that Florida is home to a variety of robust and diverse ecosystems ranging from the salt marshes along the coasts to the Everglades. Further, Florida, at least the majority of the state, has a very rich history and is perhaps one of the last true frontiers left in America a place where true cowboys raise cattle and reap the harvest of the land. The Florida Legislature has recognized the need to build sustainably moving into the future and to that end have enacted the following legislation.

255.2575  Energy-efficient and sustainable buildings.--

(1)  The Legislature declares that there is an important state interest in promoting the construction of energy-efficient and sustainable buildings. Government leadership in promoting these standards is vital to demonstrate the state's commitment to energy conservation, saving taxpayers money, and raising public awareness of energy rating systems.

(2)  All county, municipal, school district, water management district, state university, community college, and Florida state court buildings shall be constructed to meet the United States Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) rating system, the Green Building Initiative's Green Globes rating system, the Florida Green Building Coalition standards, or a nationally recognized, high-performance green building rating system as approved by the Department of Management Services. This section shall apply to all county, municipal, school district, water management district, state university, community college, and Florida state court buildings the architectural plans of which are commenced after July 1, 2008.

While this legislation may not seem very progressive to those of you who live in some of the more progressive cities such as our nations capitol it is a great step forward for Florida. What I find to be the most interesting piece of this legislation is section 3 which encourages the fostering of green building professionals and a continuing education program which can help guide Florida's builders into the future. For additional information regarding Florida's green building and renewable energy initiatives I encourage you to take a look at the excellent resource assembled by DSIRE which can be found here.

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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?

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Environment News Service published the findings from the American Institute of Architects (AIA) green study this week and the findings show that America is experiencing explosive green growth.The AIA study shows that 138 cities now have green building programs compared with just 92 in 2007, an incredible 50 percent increase! The Eastern region experienced even greater growth with a 75 percent increase in the number of cities with green programs. However, what I found to be most interesting was the following quote by Christine McEntee, AIA's CEO:

"It is encouraging that cities are recognizing the economic benefits of energy-efficient buildings, and equally encouraging that the number of programs across the country are increasing despite such difficult economic conditions,Our ultimate goal is to achieve carbon neutrality in buildings by 2030 and that all design projects will be sustainable as a matter of course."

 In light of this growth what is your city doing to encourage green building and how are you preparing yourself to take advantage of it? While GBET often focuses on the risks of green building it is equally important to focus on the potential rewards. I would love to hear how you and your company are involved in the green building field or what your plans are to enter it.

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We are all well aware there is an ongoing identity crisis in the green building world. What does it mean to be green? Does it require certification? How will it perform? Blah blah blah. Well today a report (PDF) prepared by the USGBC and Booz Allen Hamilton completely redefined how many will think of green building! All too often when speaking about green buildings and economics we focus on the additional cost to the developer and the environmental benefits rather than the benefits to the overall economy. This study provides some staggering statistics which we here at GBET believe will change the way you think of green....can you say show me the money? According to the study from 2009-2013 green building will:

• Support 7.9 Million jobs
• Pump 554 Billion dollars into the economy
• Provide 396 Billion dollars in wages
• Contribution to the U.S. gross domestic product (GDP)
  • 2000-2008: $173 billion
  •  2009-2013 forecast: $554 billion
•  Jobs created or saved (includes direct, indirect and induced jobs)
  • 2000-2008: 2.4 million
  • 2009-2013 forecast: 7.9 million
• Wages
  • 2000-2008: $123 billion
  • 2009-2013 forecast: $396 billion
• Energy savings
  • 2000-2008: $1.3 billion saved
  • 2009-2013 forecast: $6 billion saved

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Recently here at GBET we have been discussing green building and the economy and more specifically green building and ROI. As an advisory board member of Build2Sustain I am very hopeful that green building will continue to prosper through increased transparency. A recent article posted on Reuters and published by GreenBiz focuses on a report released by Rob Watson. The report makes several interesting findings which if accurate are truly exciting and emphasize the need for attorneys, contractors, and developers to begin participating in green projects before they are left behind. Among the key findings of the report:

The estimate of reduced vehicle miles traveled (VMT) has grown to 780 million VMT to date versus 400 million in 2008. By 2030, the annual gasoline savings are expected to equal current U.S. imports from the Middle East.

• Total water savings from LEED through 2009 is estimated at 15 billion gallons, comprising 0.5% of annual non-residential water use. By 2030, LEED results in nearly 1.3 trillion gallons of saved water, equivalent to 30% of current annual non-residential water use.

• Annual carbon dioxide savings from LEED buildings is approximately 2.9 million tons from energy efficiency and renewables, a figure that is expected to grow to 130 million tons per year by 2020 and almost 320 million tons annually by 2030.

• Based on average materials costs, green building materials represented approximately $7 billion in cumulative spending through 2009, which is expected to reach a cumulative $230 billion by 2030. Moreover, the embodied energy in buildings that are renovated instead of demolished is expected to save as much energy in 2030 as we import this year from Saudi Arabia. In addition, an average of over 60% of construction and demolition waste was diverted from LEED projects, totaling 25 million tons to date.

• An average of at least 580,000 employees are currently enjoying improved indoor environments in LEED buildings at present, and the "green building workforce" is expected to approach 29 million by 2020 and almost 64 million by 2030. The productivity benefits from LEED buildings to date range from $230 to $450 million.

 

As the United States continues to participate in climate change discussions and to contemplate implementing a carbon trading system through legislative efforts in Washington the estimated carbon dioxide savings from a green building could become even more important in the future. If you are not currently participating in green projects I encourage you to do so. Further, if you are afraid of participating in green projects I would love to hear your reasons.

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Back in September a Palm Coast ordinance providing for the fast tracking of building permits, relief from permitting fees and  free certification inspection of green buildings by city inspectors hit a roadblock and was tabled. According the the Flagler County News this ordinance was unanimously passed in a modified form this past week. The major sticking point in the original legislation was not resistance to green building itself but rather the provision for unlimited free inspections by city inspectors. The homebuilders group argued that providing unlimited free inspections was going to hurt the business of independent companies who currently provide such services while the city council argued that free inspections would help builders who are currently wary of building green become comfortable with the process. The ordinance is meant to provide an incentive to builders to go green as city manager Jim Landon says: 

"In essence what this does is attempts to not require builders and developers to include more environmentally friendly design, but gives them incentives to do so,"

"We changed the ordinance so we will do one certification per builder with the idea that hopefully they will see some value in continuing that program,"

Are green building incentives and mandates being held up by the market or rather by interest groups who fail to see the bigger picture? Palm Coast is taking steps in the right direction it is a shame to see good legislation being watered down the interests of a small group of independent building inspectors, individuals who presumably want to see green building expand.

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According to an article in the Baltimore Sun the outlook for green buildings in our current economy is perhaps not as dreary as many fear. Enterprise a Columbia, Maryland based affordable-housing financier has revealed they intend to spend more than $4 Billion on the green construction and renovation of affordable homes. The article had several interesting quotes:

The utility savings alone -- an average of about $4,850 over the lifetime of a residence -- are more than the about $4,500 it takes to comply with Enterprise's green-building criteria, the group said. Enterprise leaders launched a green-building initiative five years ago to encourage such work and has been studying the results.

"This is the right direction," said Dana Bourland, vice president of Enterprise's green initiative. "Not only are there financial savings, but there are health benefits and lower carbon emissions. ... We just can't afford not to make sure everything we do its green."

What is particularly interesting about these quotes is the fact that Enterprise has been studying the results of their green building initiative for five years and believes that the results merit a truly impressive investment. What is equally interesting is that there is no mention of a green certification but rather what appears to be a homegrown green-building criteria. Is green building stripped of its fancy labels and certification the wave of the future? Will it be affordable housing which provides the data to demonstrate that green building makes financial sense?

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We all know that the economy is in bad shape and that the prospective for new construction starts is dim. So what exactly does this mean for the future of green building here in the United States and across the world? Here in the United States there is an increasing trend towards being "greener" and more eco-conscious, which means that many individuals are willing to pay a premium for green features. This willingness of American consumers to pay a premium for green design and construction means that builders have an incentive to build these types of structures. However, a recent article in an Israeli paper Haaretz suggests that green buildings do not carry the same premium abroad.

"I don't want to be the one to tell you," said one apartment purchaser on an Internet forum, "but as someone who has already bought an apartment in the Kfar Sava Hayeroka neighborhood ("Green Kfar Sava"), and I believe I represent the opinion of 90% of the purchasers, it doesn't matter if there is special garbage collection or solar-powered lighting. The reason people buy in the neighborhood when it comes down to it is location, prestige and a good price. You won't find 'greens' among us."

"A contractor would prefer to build a large, spacious lobby or a pool in the building, so the benefit from an upgrade will be visible and the customer will pay accordingly," said Yisrael Kurtz, an urban economic consultant specializing in eco-friendly construction who is also one of the managers of Geo-Green, a subsidiary of the Geocartography Knowledge Group polling and research firm. "In eco-friendly construction, the contractor doesn't know what he will get out of it and if he can charge more, which is a major hurdle for builders in Israel and abroad."

"Currently there is uncertainty and ignorance among contractors and consumers on the subject," Kurtz said. "Therefore it is impossible to conclusively determine the value of a 'green' apartment in Israel. At the Kfar Sava Yeroka project, for example, the apartments are selling for 10% more than second-hand units in the center of the city, but it's possible the higher prices are not the result of 'green' construction but because of high demand for the location and for the project as a result of the lack of new projects in the city."

 What I found most interesting is the fact that the article suggests that consumers and contractors are ignorant on the subject of green building. As much as I criticize LEED and the USGBC for their lack of leadership on the energy performance front they have done a greater good for the green building movement here in the United States by educating the public and the building trades about the benefits of green building.

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Today I was pleasantly surprised to hear that 1600 Pennsylvania Avenue, the building we all refer to as The White House is moving one step closer to becoming The Green House. The White House making efforts to become LEED certified redefines LEEDing from the top! No matter what your political affiliation I feel it is important for our nation's most symbolic piece of real estate to set the example for our country to shift towards more sustainable practices. The White House has progressively moved towards greater energy efficiency by installing a solar water heater under President Carter, embracing CFL lights under President Bush, and planting an organic vegetable garden under President Obama but is still a very long way from being a model for America. So what will the White House do to further its efforts to obtain LEED certification? According to White House Council on Environmental Quality (CEQ) spokesperson, Christine Glunz the White House will do the following:

• Implementing computerized energy management systems
• Automatic light sensors that turn off in unoccupied rooms
• Low-flow water valves
• Paints and sealers with low or no volatile organic compounds (VOCs)
• Biodegradable cleaners and recycled equipment will all be used by White House groundskeepers and engineers
• Window films that will lower UV rays and save energy will also be added.
• Leftover materials from the renovation and demolition will be donated to local reuse organizations

Hopefully the government will soon add two more acronyms to its repertoire, LEED, and EBOM.

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In the world of politics it is very rare to see a politician who not only understands environmental issues but then also follows through and leads by example. Governor Timothy Kaine of Virginia is one of those rare individuals who is not just full of hot air but rather follows through on his pledges, leads by example and then seeks to make the necessary changes to facilitate sustainable practices for individuals like you and me.This past week Gov. Kaine toured the Virginia Association of Counties headquarters, a building which was constructed in 1866 and entirely renovated to LEED standards. While on the tour Gov. Kaine made the following remarks:

“VaCo has done a tremendous job of making environmental improvements to this historically important building,” says Kaine. “Legislation I signed this year will not only further my Renew Virginia initiative but will make it easier for localities to encourage green construction and green roofing. I hope localities look to the example set by VaCo to provide incentives for the development and deployment of green roofs across Virginia.”

The legislation the Governor refers to is:

• HB 1975 and SB 1058 from Del. Lee Ware and Sen. Mary Margaret Whipple authorizes localities to grant regulatory flexibility and incentives to promote the construction of vegetative roofs and solar roofs on private homes and businesses. The incentives or regulatory flexibility could include a reduction in permit fees when green roofs are used, a streamlined process for the approval of building permits when green roofs are used, or a reduction in any gross receipts tax on green roof contractors as defined by the local ordinance.
   
• HB 1828 from Del. William Fralin allows water authorities to offer rate incentives for vegetative roof construction. The bill also authorizes localities to establish a rate incentive program designed to encourage the use of green roofs in the construction and remodeling of residential and commercial buildings. A locality’s incentives must be based on the percentage of storm water runoff reduction the vegetative roof provides.

What are your local leaders doing to further sustainability?

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Disclaimer: This is not a political post, just my observations about the health care debate and what the green building community can learn from it.

The definition of green building much like that of the term public option in the health care legislation is open to debate. What criteria does a building need to meet in order to be green? Some individuals argue that a building is not a green building unless it obtains certification either by the USGBC or Green Globes or NAHB. While certification does provide a label and verification of a company or individual's achievement it comes with a cost. Federal projects are now required to be build to LEED silver standards. Does requiring LEED certification miss the point?

Much like the health care bill which has people on edge because of their inability to understand its poorly drafted language, individuals often shy away from green building and in particular certification because they are unable to understand it. This past week I spoke with a contractor who is currently involved in several projects and asked him about his experience with green building and LEED specifically. The contractor replied that his buildings were being built or renovated to achieve high levels of water and energy efficiency but that he did not pursue certification because the system was too complex and "wishy washy".

In order to overcome the resistance of individuals to build green or pursue certification it is the responsibility of builders, contractors, attorneys and the USGBC to clarify the system, remove the mystery and inconsistency between credits, and alleviate the fears of those responsible for paying the certification costs that despite their efforts a building will fall short by missing a credit. In its current form LEED certification while very valuable is skeptically viewed by some individuals in the same manner as medical procedures and diagnostic tests performed by doctors. Is it time for green building certification to become outcome based rather than design and construction based?

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This past week I sat for the Florida Bar Exam and during the last several days of decompressing I came to realize that the bar exam and green building have something in common! For the last month I have done thousands of practice questions, read numerous essay questions and attempted to learn how to spot the issues and identify the nuances between answer choices. I have also gone back and remembered funny moments and valuable lessons from the last three years and will now share with you why I believe the bar exam and green building have something in common.

1. Being a green building attorney is like studying for the bar exam because right now all that can be done is practicing analyzing problems and evaluating the potential issues. Like an anxious student waiting for his bar exam results everyone has their eyes open for reported cases of green litigation.
2. Perhaps there is no litigation because the attorneys representing those involved in the green building trade had a professor similar to my favorite Professor J.J. Brown who once said "If your client ends up in court you have already failed them" As has been discussed in great detail much of the green building litigation can be avoided through proper contracting.
3. Like a group of students studying for the bar exam the green building community is extraordinarily close. None of us know everything but we all hope that through practice we know enough to spot the issues and do well when the test/litigation first arrive.

Now that the bar exam is behind me I will be back to writing and job  searching and look forward to the engaging and educational conversations I have come to enjoy with my readers.

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This past weekend I had the opportunity to have an excellent conversation with Chris Cheatham of GBLU and Shari Shapiro of GBLB regarding green roofs. The conversation was started by Shari when she posted an article addressing green roofs and their risk for fire potential. Brian Phelps provided an excellent paper addressing green roofs in general and highlighted a section of the paper addressing the fire potential of green roofs which rebuts the article posted by Shari.

While I had previously considered the potential problems with green roofs such as leaks, collapse, and corrosion I had never contemplated a green roof as a potential fire hazard. I suppose part of my failure to consider the risk of a fire potential with a green roof is the key phrase "green" as in properly irrigated and not likely to ignite. However, imagine a green roof gone dry, particularly a green roof which is accessible by building occupants. A dry "green" roof, a stray cigarette, and a urban brush fire! Possible, but highly unlikely. In fact the evidence presented in Christine Robertson's paper suggests that in Germany where green roofs are extensively used there has never been a green roof fire and that as a result green roofs are associated with a 10-20% discounted rate on fire insurance. Likewise, Ms. Robertson's paper suggests  that the threat of fire
is 15-20 times higher on bare roofs with fully adhered bituminous waterproofing membranes
than on extensive green roofs with grasses, perennials and sedums.

Keep tuned to Konstructr for the input of Mark Rabkin a knowledgeable insurance guru and risk management profession who will be chiming in with green roofs from an insurance perspective in the near future.

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Recently an article published by Real Estate Rama spoke about how the U.S Conference of Mayors and the USGBC  have urged Congress to appropriate additional funds to study and evaluate the benefits of green schools. H.R. 2187 the 21st Century Green High-Performing Public School Facilities Act will authorize billions of dollars for school repair, renovation and modernization nationwide. The construction, renovation and modernization of these schools will serve as an education for everyone involved in their construction, planning, operation and use. While we are all familiar with the litigation that has arisen from school construction projects in the past these new green renovations pose the potential for both great success and great liability. A green school offers numerous benefits such as a healthier learning environment but if the proper steps are not taken the potential for mold and other problems is great. Will your children be educated in the schools of tomorrow or in the same crowded, flourescent lit school of my childhood?

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On May 20th and 21st I attended a conference on behalf of Konstructr. The conference was held in Orlando, Florida and was titled Green Cities Florida: Advancing The Business & Science of Sustainability for Business & Government. The conference focused on the roles and responsibilities that individuals, businesses, and the government must play in advancing sustainable initiatives.

The highlight of Day One was a presentation by Eric Corey Freed, a principal of organicARCHITECT and a founder and leader of the Re: Vision initiatives. Freed's presentation titled RE:Visioning The American City focused on the Re: Vision Dallas project, the first fully sustainable inner city block in the United States and how the "unified conceptual framework" was applied to overcome challenges. The "unified conceptual framework" is essentially a glorified charette which brings all the individuals who are working on or will be impacted by a project together to overcome challenges. Freed's presentation also discussed the transformation of sustainability from a niche embraced by "hippies" and "treehuggers" into a movement which touches all of us and will be advanced by the education and involvement of the greater community.

On Day One I also attended a workshop titled: Green Media, Marketing and Public Relations. This workshop focused on how governments, businesses organizations and neighborhoods can achieve their sustainable communication by leveraging an integrated approach. The panel consisted of Ia Bryan (President of Sensible City), Sunny Lewis (Editor in-Chief of Environment News Service), Eamon Martin (Executive Director of The Global Report) and Trish Michaels (Co-founder of M4 Marketing). One of the questions I asked was whether using the word "green" in light of how it has become cheapened by efforts to monetize on it is still a good strategy for people who are deeply invested in the green and sustainable movement. The panel responded that the word green is used because it is short and therefore easy to use in media reports and that other words such as sustainable are not often understood by the larger public. The panel's opinion was that use of the word green is still appropriate as long as it is used to the best of our abilities and as long as we seek to clearly define what we mean by the word.

On Day Two I attended a speech by Lt. Governor Jeff Kottkamp and Tim Center the Director of the Collins Center. This speech was titled: Moving Toward a Sustainable Florida- People-Planet- Prosperity. The focus of the speech was to help better understand the concepts of sustainable development in the context of projected growth, transportation demands, infrastructure challenges, and ecological limits of Florida but the lessons can easily be extrapolated to any state. The main message was that sustainability begins with education and that we as thought leaders in this movement need to challenge people to think differently. As Tim said "Thinking that traffic problems can be solved by widening highways is like thinking obesity can be solved by loosening our belts" we need to change the way we tackle the problems our society focuses by educating government leaders, developers, and our fellow citizens to stop taking the easy pathway and instead seek to do things in a way that makes the world a better place for future generations. While some individuals advocate that we do things in a way that leaves no footprint this is an unrealistic goal and instead we should seek to do things in a way that minimize our impact on nature and hopefully create a better world for future generations.

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Today I am going to be a little unconventional and rather focus on my own thoughts or a current issue I am going to encourage you to check out what some of my friends in the construction,design,legal, and real estate industries are up to. The links below are all excellent resources if you have any interest in this area.

• Chris Hill writes a blog www.constructionlawva.com where he focuses on key legal issues surrounding the construction industry. Chris can be contacted on Twitter @constructionlaw.
• Shari Shapiro writes a blog www.greenbuildinglawblog.com where she focuses on key issues surrounding green construction, land use planning, and current and pending legislation. Shari can be contacted on Twitter @sharishapiro.
• Chris Cheatham writes a blog www.greenbuildinglawupdate.com where he focuses on green building LEEDigation, and legislation. Chris is responsible for motivating me to write this blog and a great resource. Chris can be contacted on Twitter @chrischeatham.
• James Bedell writes a blog www.build2sustain.com where he is seeking to document how energy efficient remodeling can be performed. James can be contacted on Twitter @jamesbedell.
• Vik Duggal, the master mind behind www.konstructr.com is an invaluable resource who brings people involved in all disciplines of the real estate development world together. Vik can be contacted on Twitter @vikdug.
• Stepehen Del Percio writes a blog www.greenbuildingsnyc.com which focuses on green and sustainable projects in NYC. Stephen can be contacted on Twitter @stephendp.

All of these individuals are people I encourage you to connect with, each and every one of them is very knowledgeable, approachable, and a truly valueable resource.

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It is my honor this week to have Mark Rabkin of Althans Insurance Agency present a guest post dealing with green building and the surety. The issues surrounding green building and the various bonding and insurance issues remain an enigma to many of us but Mark definitely has his finger on the pulse of the issue and is an invaluable resource for anyone involved in the construction industry. Mark is very active on Twitter where he can be contacted @MeRabkin.

When a large, publicly funded construction project is sent out to bid, each contractor that is vying for a piece of the pie must submit a bid and performance bond in conjunction with their application. The bid and performance bond is underwritten by a surety company and provides a financial guarantee to the owner of the project that the contractor will comply with the terms of the construction contract. Should a contractor fail to perform, the surety company will either pay the current contractor to complete the project or hire another contractor to either fix the errors caused by the first or complete the job if the original contractor becomes insolvent. The surety company will then pursue the original contractor to collect on the defaulted amount. 

As indicated above, a surety bond is meant to guarantee the performance of a contractor as per the construction contract. The surety underwriters evaluate a “risk” based on their financial position, overall industry expertise including managerial experience and familiarity with the construction methods upon which they are bidding. It is important to note that the most critical component of a final bond is the actual contract that is entered into between the various parties involved. Should the contract contain language that is onerous to either party, a surety will either refuse to bond the contract or seek to have that specific language excluded or stricken from the contract. For example, extended warranty periods or usurious liquidated damages clauses are significant red flags to surety underwriters and legal departments.

Building projects that are registered for certification by an independent third party such as the US Green Building Council are rapidly growing in number. Many federal, state and municipal entities now either require or encourage new construction, major renovation or leased space to demonstrate some level of environmental stewardship throughout the construction process or energy efficiency within the subsequent operation of the facility. There has been much debate within risk management circles regarding the possibility that a project could fail to either achieve certification or attain a specified level of achievement. These situations could result in lost revenue opportunities for the loss of tenants, lost tax incentives, utility expenses higher than promised or any other failure to achieve an expected benefit of the proposed project. To protect themselves, project owners will look to transfer the risk to the design team or construction contractors and subcontractors. It should be noted that most if not all sureties will refuse to bond a contract that contains language that guarantees certification by a third party entity such as the US GBC or seeks to guarantee a specific level of energy efficiency.

Traditional general liability insurance defends and protects contractors for bodily injuries or property damage caused by the insured party’s negligence. It does not provide for defense or indemnification for claims due to breach of contract. Should a third party claim financial injury due to the negligence of a contractor, professional liability coverage (also called errors and omissions) could respond. This coverage is available in the market for construction companies and is increasingly necessary as more contractors are obtaining accreditation as “specialists” upon successfully earning their LEED-AP designations. 

Mark E. Rabkin is a triple bottom line risk manager for Althans Insurance Agency in Cleveland, Ohio. He counsels clients on the risks faced everyday that impact his client’s financial, social and environmental exposures.

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How do we avoid using the words green and sustainable when talking about construction and buildings? A green or sustainable building broken down to its simplest principles is one built upon best construction practices. The best practices yield the best results, buildings that have a low impact on the natural environment, improve occupant comfort and health, and conserve resources such as water, electricity, and construction materials. An article published today on treehugger stated that 98% of products labeled as green are actually greenwashed! Think about it, do we really want to use a word such as green which is rapidly losing its meaning and becoming associated with fraud? I firmly believe at the end of the day anybody building a "green" building is building it to those standards because they want the best, therefore I propose we use the term best practices, which has been widely used in the past to refer to green/sustainable building practices. What do you think? Should we build the best building or continue to use a word which is becoming associated with fraud?

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You might not expect this from someone who has a blog with the word green in its title but the word green needs to vanish from our building vernacular! Why? When we call a building green we are using green as an adjective to set the building on a pedestal and show that it is unique. One of my primary goals with this blog is to educate individuals about sustainable building. A building requires a large output of capital, and should be built to last. Sustainable design and building practices represent the future of the construction industry, a concept which is widely discussed at Konstructr.This week Vik Duggal (@vikdug on twitter) discussed the concept behind Konstructr. If we take a minute to stop and think about his message it should become obvious that green is a word which needs to vanish from our vocabulary. Personally I cannot wait until green is no longer used in reference to buildings and returns to its roots as a word used to describe an object's color. Did the Romans intend to build a green building when they built the temples or the Egyptians when they built the pyramids? No! They built buildings which were made to last, beautiful, sustainable buildings that are still here centuries later. Next time someone asks you about green building tell them its not about "green" its about sustainability. Let us all strive to build the temples and pyramids of our generation.

Photo Credit: Jetsongreen.com

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Great River Enegy recently released a white paper detailing the construction of their Maple Grove, Minn. headquarters, the first building to achieve LEED Platinum in the state. The text of the white paper can be found here.Great River Energy not only built a sophisticated building which scored 56 points but also built a structure which can be used to educate others.

The key features of the Great River headquarters are:

1. Uses 50% less energy and 90% less water than a structure built to just state codes
2. Utilizes an in lake geothermal HVAC system
3. In floor displacement ventilation system
4. Daylight harvesting
5. 72 kilowatts of on site solar power and a 200 kilowatt wind turbine
6. Only cost 10% more than a traditionally built structure

The Great River Energy headquarters is an excellent example of how proper research, communication between all team members, and follow up evaluation and corrective action can create a building that is not only sustainable and efficient but also an excellent educational tool to spread the message that green building does not need to break the bank.

We need to rethink the way we evaluate buildings and energy usage for as the CEO of Green River Energy said: "At Great River Energy, we know the cheapest—and cleanest—kilowatt-hour is the one we don’t have to produce. So conservation and energy efficiency have become our first
fuel.”

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Times are tight, credit is hard to come by, and there is a significant surplus of built residential and commercial property sitting idle. Will the current economy hurt the green building movement or is the industry recession proof as a recent string of articles would like us to believe?

In a March 16th interview with Peter Morris of construction consultancy Davis Langdon, the folks over at Business Week attempted to look into the crystal ball and see what the future holds. The interview raised several interesting issues regarding the value of green building, particularly in light of the current economy and the fallacy of life-cycle cost analysis based on straight line models. As Morris said:

Trying to prove the value of green just on pure economics always seemed to me not necessarily dishonest, but it was like trying to catch people's pocketbooks as opposed to their morality.

Should we reconsider the manner in which we educate the public about green building and its "value"? I think the answer is clearly yes.

One of the biggest obstacles green building has faced has been proving its value in terms of economic benefits to the owner. Many of the early green buildings were unable to live up to their projected cost savings due either to flawed analysis of features cost saving potential or due to improper operation of the building after occupancy.

I propose the following methods to deal with this problem:

1. Make enhanced commissioning and education of building occupants a prerequisite under green building certification schemes.
2. Encourage post occupancy efficiency reviews to correct problems with both building systems and occupants habits.
3. Emphasize that their are benefits to going green which cannot be measured in simple economic terms.

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