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Business Sector Adoption of Energy Conservation Measures

By admin | January 30, 2009

Kevin GrosskopfKevin Grosskopf from the University of Florida School of Construction spoke on the topic of “Rate Absorption Approach for Business Sector Adoption of Energy Conservation Measures”.

Grisskopf began his presentation by emphasizing the importance of bringing consumers on board with the Green Building ideals. Without them, the movement will not be able to continue to grow.

LEED is good because it helps to brings Green Building initiatives into the market place. Right now, with over 5,000,000 buildings in the US, very few are LEED certified.
When looking to LEED, an owner is going to want to know how much cost is involved in becoming LEED complaint. The owner is then going to want to know how exactly these changes will affect long term costs for the better to help pay for the initial cost.

A problem is that the more alternatives you adopt into your system, the less each individual piece will contribute to the overall effect. This is the declining utility effect.

What needs to happen is that LEED needs to develop a payback mechanism that properly operates as to not leave incentive money unused. To do this, a look needs to be made not only into the effect on each building, but also to the externalities that each project creates.

Over the last 20 years, the average house size has increased 30%. 80% of residence dwellings are single-family detached housing. Many of these are being made in speculation neighborhoods. Contractors in this area are looking for items that help sell the home, not that necessarily help the environment. They look for the sale, not the cost. Buyers in general still favor the Corian countertop over an energy efficient air-conditioner. These buyers look to the mortgage to gage cost, not the energy savings over a longer period of time.

When asking homeowners about their use or possible use of Green items in the home, respondents with incomes 65K a year were more likely to make such investments.

Moving now to commercial buildings, over 80% of commercial property is lease space. Tenants have very little input in to what is built into the building, and often have high turnover and take space as the previous tenant left it. They are also a lot more skeptical about soft-benefits, such as employee health.

Moving to suppliers, these energy savings items can be an effective alternative to capacity issues. This type of savings, or even rebate for the owners low energy use, may help to tip the builder to use more energy efficient items.

So a paradox has been created. We cannot readily determine this tipping point.

Rate Absorption Approach for Business Sector Adoption of Energy Conservation Measures (ECM’s). By giving a business a reduction on their initial cost, say on the cost of a low energy air conditioner, the energy company then raises the rates of other buyers to offset their payment to the Green technology user. By looking to which industries use the most energy, incentives can be directed to them for the highest benefit.

However, most commercial buildings are leased. So why would a tenant want to adopt these technologies and pay the initial investment if they are going to leave the space within a few years, before they can recover their initial cost? This reasoning has led to a decline in leased space using these types of incentives.

A case study examining a hypothetical adoption of these technologies in different U.S. markets will be published soon.

So, by allowing bigger rebates than ever given in the past, Green technology adopters will be given a monetary advantage. But exactly what should the rebate be? How much would move you to adopt these Green technologies into your home or business?

RATE ABSORPTION APPROACH FOR BUSINESS SECTOR ADOPTION OF ENERGY CONSERVATION MEASURES
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LEED: Market Enablers and Barriers
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Current Issues In Green Construction Law

By admin | January 30, 2009

Stephen Del Percio
Stephen Del Percio from Arent Fox (and W&M Law Alum– w00t!) presented a talk titled “Current Issues in Green Construction Law: Legislation, Claims, and Contracts”.

At the outset, he noted the importance of involving attorneys in the green building process from the planning stage to reduce litigation. Among his major points were state and local legislation, potential causes of action on green projects, other emerging areas of green legal risk, specific green building claims reported to date, standard of care for design professionals, and America’s first green building litigation: Shaw Development.

Del Percio stressed the importance of state and local governments being more outcome oriented, instead of process oriented. The problems of local government implementing LEED programs into their legislation, because the municipality is not participating in the process of LEED changes, he encouraged municipalities to actually revise and consider legislation before extending existing legislation. Another danger problem with incorporating LEED programs into legislation is the inflexibility of third party rating systems, exemplified by Supreme Court cases where manufacturers have brought antitrust suits against third party rating systems because of their inflexibility in certifying a broader array of products. Boston and Dallas have notably adopted “LEED certifiable” standards to be more accommodating of construction inputs. Ultimately, Del Percio believes legislators need to keep in mind the broader legal ramifications of their policies.

Potential causes of action on green building process include: misrepresentation and fraud, negligence and breach of contract, and negligence per se. Many recent claims in green building have resulted from green building include an architect who overstated its green qualifications, or alternatively from the owner perspective, overstating the benefits of green space to lessees. Oftentimes, these claims resulted in litigation and significant damages. These suits reflect the importance of design professionals conducting thorough due diligence to avoid costly damages in design flaws, overstated expectations, or patent infringement.

Finally, Del Percio emphasized the importance in contracting measures to insulate parties from risk. Shaw Development v. Southern Builders demonstrates the importance of contracting measures, in a case where the contract did not reflect the requirement for obtaining LEED certification and as a result the owner lost a significant amount in tax credits. This case reflects the importance of defining the expectations and requirement of what “green” means to the parties. The avoidance of form contracts will ensure that expectations are clearly articulated and more likely to be met, or if not protects parties from risk and litigation.

In incorporating attorneys from the planning phase of projects, both owners and design professionals can potentially avoid green pitfalls and costly litigation.

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Green Building Regulatory Trends in Virginia

By admin | January 30, 2009

Chris CheathamChris Cheatham provided a brief overview of the impact that future regulation may have on Virginia construction. There are currently 61 LEED certified buildings in the state of Virginia, and there are 498 LEED registered buildings in the works. Cheatham pointed out that William & Mary recently created its own LEED certified building, the recreation center. While LEED certification is catching on, there are currently no formal requirements for Green building in Virginia.

Cheatham discussed how disputes may arise in Green Construction. While some disputes are basic construction issues, others are specific to the value of a Green building. For example, when an owner decides to build a green building, they can promote their LEED registration. If the building later fails to achieve LEED certification, occupants of the buildings may not be satisfied with the ownership. It will be interesting to see how courts decide to resolve disputes over the value of LEED certification. Currently, there is no case law on how these disputes will be settled.

A major issue is how state and local government will develop green building codes. One of the major obstacles for municipalities in Virginia is the Dillon Rule. The Dillon Rule makes building codes the exclusive province of the state government. Other cities around the country have been able to foster unique programs because regulation is not limited to the state level. For example, Portland, Oregon has developed a feebate. For projects that are not designed with environmental conservation in mind, the owner will owe the city a fee. Depending on their LEED ratings, other owners will not only have the fee waived, but they will receive an annual rebate from the city. Washington D.C. is taking another approach. The DC Green Building Act of 2006 mandates that by 2012 all private-owned projects will have to be LEED certified. The enforcement mechanism will be a performance bond that will only be refunded if the building meets LEED certification. Cheatham expects that DC will amend the legislation because of the difficulties of collecting on a performance bond.

Here in Virginia, Governor Tim Kaine has instituted Executive Order 48. The Order mandates that State owned facilities should be designed and constructed consistent with LEED ratings and utilizing Energy Star products. When the 2008 budget was proposed, the General Assembly decided to include an amendment provision that state building should be constructed under LEED or Green Globes standards. At the time Governor Kaine vetoed the inclusion Green Globe standards, but the General Assembly overrode the veto. This year, Governor Kaine has made statements leading Cheatham to believe that the Governor may be willing to put the debate over standards aside in order to pass legislation that will mandate Green building practices. Cities and counties in Virginia are anxious for the state to take action and have even pushed the boundaries of the Dillon rule to pass their own green building provisions. What provisions do you think Virginia will adopt in regard to green construction? How will the cities and counties of Virginia react to the legislature’s decisions?

Regulating Green Building in Virginia
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Introduction to Green Building

By admin | January 30, 2009

Ken SandlerKen Sandler joined us today from the Environmental Protection Agency. The topic of his presentation was “Introduction to Green Building– and What EPA’s Doing About It”.

Sandler discussed the goal of significantly reducing the lifecycle impact of building on the environment, as well as the health impacts of materials and products. 

The EPA has already established programs set up to do this that focus on construction debris. However, the focus is shifting beyond the building toward the landscape and the community. This is part of the philosophy of smart growth so that we can have livable communities.

Sandler also mentioned that the EPA is seeking to redefine the meaning of green building. In doing so, the EPA aims to raise building codes to at least minimum green levels and to facilitate the mainstream adoption of effective green building practices. The EPA would like to spur adoption through public education, partnership, and leadership by example. And, by influencing the vocabulary of consensus-based standards, the EPA hopes to fill in the gaps of the market definition and create a new bottom line.

In the Q&A session, Sandler discussed Homeowner’s Associations as a potential barrier for community greening. The EPA offers technical assistance and model ordinances, and Sandler encouraged the audience to check out the EPA website on the topic– http://epa.gov/smartgrowth

Sandler was also asked if the change in the presidential administration means that there will be increased acceptance of greening practices. Sandler replied by saying that  Tom Friedman said in his recent book that ”We’re in a Green Revolution”; but, Sandler points out that “revolution” implies there is friction and people that are in dissention. However, green opportunities seems to have very positive reception and that the devil is just in the details. 

Finally, Sandler talked about what’s becoming the industry standard for green certification rating standards and managed to give, in his words, a typical Washington “non-answer.”

“Building science needs to catch up with certification.”

Sandler Presentation
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Feel free to discuss Sandler’s presentation in the comments section.

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Biophilic Urban Design

By admin | January 30, 2009

Timothy Beatley

The 2009 ELPR Symposium is kicking off with a presentation by Timothy Beatley from the University of Virginia School of Architecture.

With a flurry of fantastic powerpoint pics, Beatley introduced the audience to the world of biophilic urban design.

His primary focus was on encouraging city planners to look at every space as an opportunity to green.

The biophilia hypothesis suggests that there is an instinctive bond between human beings and other living systems. In Biophilia Edward Wilson defines biophilia as an “innately emotional affiliation of human beings to other living organisms.”

Studies have shown that this is indeed the case– Therapy: Walking in Nature, a British study performed to see if there was any marked difference in emotional health when individuals walked in nature versus in shopping malls, found significant reductions in depression, anger, tension and fatigue in individuals who spent more time walking in nature. Humans have become disconnected from nature due to dense, compact urban design.

As a result, more and more, cities and neighborhoods are attempting to incorporate nature in city planning and building. The book Biophilic Design, of which Beatley is a contributing writer, attempts to rethink urban infrastructure in an effort to eventually develop a multi-level design that connect humans with nature.

What are some of the step that can be taken? Simply incorporating natural light in the workplace considerably raises moral and productivity. Efforts such as growing green rooftops, walls and bridges or gardens in sewer runoff systems are all small steps that many cities and neighborhoods have already undertaken to reach out to nature. Rethinking architecture so that it is reimagined as a stream and an opportunity to grow food. Rethinking streets so that it’s not just about conveying traffic. Rethinking.

Taking personal steps to develop nature’s social capital is also helpful. Individuals should involve others when interacting with nature. Hiking, biking, bird-watching clubs,”fungi forays”, and nature guides can bridge the current gap between human and nature.

If you have more ideas for achieving “sustainable placemaking” or questions for our speaker, we would love to hear about them in the comments section. 

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Ethanol’s Roots

By admin | January 30, 2009

With alternative energy taking center-stage during the recent U.S. presidential election, an article published in Volume 33 of ELPR’s journal gave some insight on the Ethanol boom in another country– Brazil.

Vanessa M. Cordonnier’s article, titled “Ethanol’s Roots: How Brazilian Legislation Created the International Ethanol Boom” offers a detailed look at the partnerships Brazil formed to achieve the broad goal of developing new ethanol production technologies, sharing resources and promoting the use of ethanol as an alternative to fossil fuel.

Furthermore, the article discusses the environmental impact that increased ethanol production might have. The article also examines, in detail, the history of Brazil’s ethanol industry, looking closely to legal incentives used by the government over the past three decades to spur the industry’s remarkable growth.

The current ethanol boom in the United States has the strong support of the Presidential administration as well as many very vocal interest groups. By looking to Brazil’s history, this paper looks into whether a similar program in the U.S. would be in the best interests of the nation and the environment.

Several people have already chimed in on Cordonnier’s analysis elsewhere on the web, such as Biofuels Digest, and Autoblog Green, just to name a few. Let’s keep the discussion going!

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Welcome to the Symposium: It’s Not Easy Building Green

By admin | January 29, 2009

Welcome to the annual ELPR Symposium. This year, we will explore the topic– “It’s Not Easy Building Green: Legal and Political Issues Related to Green Building Standards and Sustainable Development Legislation”.

This program will explore various issues surrounding the green building movement. Featuring ten presentations from academic researchers, legal practitioners, and state legislators, this Symposium seeks to provide a thorough and balanced examination of green building regulations and the resulting legal implications. Furthermore, this program will address alternative green practices and strategies that may enhance the benefits of green building. We hope that you enjoy it!

We will be doing our best to write recaps of each presentation and post them to this site. Please keep checking back and feel free to leave comments to create an on-going dialogue about the issues.

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