Legal Considerations When Building Green. George Ruttinger, Esq. Chris Cheatham, Esq. Steve McBrady, Esq.

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1 Legal Considerations When Building Green George Ruttinger, Esq. Chris Cheatham, Esq. Steve McBrady, Esq.

2 Agenda Green Building Basics Green Government Legal Considerations LEEDigation Green Defects Contractual Provisions

3 What is Green Building?

4

5 How do you measure green?

6 The USGBC has four levels of LEED:

7 Steps to LEED certification: Construction Completed Register Your Project Track Progress & Document Achievement Apply For Certification

8 Green Government

9 Government Incentives, Mandates and Regulations

10 Federal Investments: America Recovery and Reinvestment Act $3.6 billion for energy efficiency and modernization $4.5 billion for high-performance green buildings $6.3 billion for the State Energy Program and EECBG $5 billion for weatherization of homes

11 Most ARRA Funds Not Spent

12 Green Mandate As a means of evaluating and measuring our green building achievements, all GSA new construction projects and substantial renovations must be certified through the Leadership in Energy and Environmental Design (LEED ) Green Building Rating System of the U.S. Green Building Council.

13 Top 10 Green Building Bills in the Senate The Clean Energy and American Jobs Act Kerry (D-MA) and Boxer (D-CA) The American Clean Energy and Leadership Act Bingaman (D-NM) and Murkowski (R-AK) Energy Efficiency in Housing Act (EEHA) of 2009 Whitehouse (D-RI) Livable Communities Act of 2009 Dodd (D-CT) The Expanding Building Efficiency Incentives Act of 2009 Snowe (R-ME) The School Building Fairness Act Harkin (D-IA) Clean Energy for Homes and Buildings Act of 2009 Merkley (D-OR) and Lugar (R-IN) The Energy Efficiency Modernization Act of 2009 Bennet (D-CO) The Water Accountability Tax Efficiency Reinvestment (WATER) Act of 2009 M. Udall (D-CO) The Federal Agency Energy Efficiency Improvement Act of 2009 Collins (R-ME)

14 State and Local Governments Green Building regulations are prevalent: 45 states 132 cities 35 counties 28 towns 34 state governments 13 federal agencies

15 State and Local Governments Washington, DC DC Green Building Act

16 State and Local Governments California Green Building Standards Code

17 Legal Considerations: LEEDigation Shaw Development v. Southern Builders

18 Legal Considerations: LEEDigation Shaw Development v. Southern Builders The Contract

19 Legal Considerations: LEEDigation Shaw Development v. Southern Builders The Contract

20 Legal Considerations: LEEDigation Shaw Development v. Southern Builders Allegation: Breach of Contract

21 Legal Considerations: LEEDigation Shaw Development v. Southern Builders Allegation: Negligence

22 Legal Considerations: LEEDigation Shaw Development v. Southern Builders The Damages

23 Legal Considerations: LEEDigation Hypothetical Project is designed to comply with a Silver Certification Level according to the U.S. Green Building Council s Leadership in Energy and Environmental Design (LEED) Rating System, as specified in Division I Section LEED Requirements.

24 Legal Considerations: LEEDigation Hypothetical Project will be constructed to comply with a Silver Certification Level according to the U.S. Green Building Council s Leadership in Energy and Environmental Design (LEED) Rating System, as specified in Division I Section LEED Requirements.

25 Legal Considerations: LEEDigation Hypothetical Project will comply with a Silver Certification Level according to the U.S. Green Building Council s Leadership in Energy and Environmental Design (LEED) Rating System, as specified in Division I Section LEED Requirements.

26 Legal Considerations: Green Defects Energy Efficiency

27 Legal Considerations: Green Defects Energy Efficiency Some Buildings Not Living Up to Green Label The Federal Building in downtown Youngstown, Ohio... has LEED certification, the country s most recognized seal of approval for green buildings. But the building is hardly a model of energy efficiency. According to an environmental assessment last year, it did not score high enough to qualify for the energy star label.... The building s cooling system, a major gas guzzler, was one culprit. Another was its design....

28 Legal Considerations: Contracts Design-Build Contracts One party responsibility for LEED certification Pass-through clauses important Define subcontractor LEED responsibility

29 Legal Considerations: Contracts Design-Bid-Build Contracts: LEED guarantees dangerous Instead, carve out LEED responsibilities Contractor Build according to plans & specs Material sourcing Construction waste management Indoor air quality

30 Legal Considerations: Contracts Avoid guarantees of energy performance if you do not control operations and maintenance.

31 Legal Considerations When Building Green Three Keys: Green building is not a fad Understand Emerging Federal and State Green Building Regulations Clarify Responsibilities Before Guaranteeing Compliance

32 Questions? Contact Information: George Ruttinger, Steve McBrady, Chris Cheatham, Crowell & Moring LLP 1001 Pennsylvania Avenue, NW Washington, DC (202)

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