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Real Estate
Newsletter - First Quarter 2005
 
In this Issue...
High Performance Green Building: How to L.E.E.D.
 
April 14, 2005
 

Part one of this two-part series, which can be found in the 2004 third quarter issue of Property Writes, addressed certain elements of green building: (i) What is Green Building?; (ii) USGBC Membership Issues; (iii) Why Build Green;? and (iv) the LEED Rating System.

Part two, as addressed in this issue, provides more detail about the LEED certification process, including eligibility, levels of certification, and applying for and obtaining registration and certification.

Part Two

The United States Green Building Council (USGBC) has encouraged “green” building through the Leadership in Energy and Environmental Design (LEED®) energy efficiency rating system. Green buildings are buildings that are designed, constructed and operated in a manner which increase environmental performance and economic value, improve the health of occupants and enhance productivity of workers. The LEED Rating System is a point-based system that identifies and evaluates green buildings based upon a point-based rating system. Since being introduced in 2000, use of the LEED Rating System has become a standard practice of the U.S. government and is rapidly gaining acceptance in the private sector.

Eligible Projects

LEED certification is available for new and existing commercial buildings, as well as homes. LEED projects are evaluated within the following six categories:

1. LEED-NC (new commercial construction and major renovation projects)

2. LEED-EB (existing building operations)

3. LEED-CI (commercial interior projects)

4. LEED-CS (core and shell projects)

5. LEED-H (homes)

6. LEED-ND (neighborhood development)

As of today in the United States, 1,717 projects have registered with the USGBC and 140 projects have received LEED certification. The number of registered projects is split almost equally between the public and private sectors.

LEED Credit Categories and Levels of Certification

There are five major categories for evaluating energy performance and other “green” factors in order to obtain LEED credits and earn a LEED certification. These categories include the following:

1. sustainable sites: site selection, development density, Brownfield redevelopment and alternative transportation

2. water efficiency: water efficient landscaping, innovative wastewater technologies and water use reduction

3. energy and atmosphere: renewable energy, ozone depletion and green power

4. materials and resources: building reuse, construction waste management and recycled content

5. indoor environmental quality: CO2 monitoring, low-emitting materials, IAQ management plan and thermal comfort

Projects undergo a comprehensive review to evaluate the “energy performance” of a building, which is based on the number of LEED credits applicable to the project. Each credit awarded within each of the above categories has a value of one point and the combined number of points results in the project’s certification level. A project must be awarded at least 26 points to be considered a certified project under the LEED rating system. The higher the number of points that are awarded, the higher the certification status a project may be able to obtain. If a project is “certified,” it falls into one of the following categories: Certified (26-32 points), Silver (33-38 points), Gold (39-51 points) and Platinum (52 or more points).

LEED Registration and Certification Process

In order for a project to be certified under the LEED rating system, it must successfully undertake a three-step process consisting of (1) project registration (initial application); (2) documentation (review process); and (3) building certification (award of LEED rating). A complete application includes the following: a) the printed LEED letter template and requested submittals for each prerequisite and credit; b) LEED registration information, including project contact, project type, project size, number of occupants, date of construction completion; c) an overall project narrative including at least three project highlights; d) the LEED project checklist/scorecard for the project; and e) drawings and photos of the project, including: site plan, floor plan, building section, elevation and rendering of project.

The submittals are reviewed for compliance with the LEED rating system and within 30 days of administrative approval, the USGBC issues a preliminary LEED review document, identifying credits earned, pending or denied. Upon receipt of the preliminary review, the project team has 30 days to provide corrections or additional documentation. Within three weeks of receiving the resubmittal, the USGBC notifies the project contact of certification status. Upon notification of LEED certification, the project team has 30 days to accept or appeal the award. After 30 days, the LEED certification is final and the project, if it qualifies, becomes a LEED certified building. The project team from a qualifying project is presented an award letter, certificate and metal LEED plaque.

Benefits of LEED Certification

The benefits of LEED certification are many. First, it evidences a building that is considered a “green” building, and therefore, provides energy savings, economic benefits, improved health of building occupants and conservation of precious resources. Second, a LEED certified project may provide other financial benefits, such as eligibility for tax incentives, grants, fast-track permitting and special loans. Finally, and maybe most important, LEED certification has become a way to recognize leaders in the sustainable building movement, a movement which is an “investment” in our future by increasing the sustainability of the building industry and creating a competitive marketplace for high performance green buildings.

While it is estimated that costs increase by at least two percent to design and construct a green building, the payback comes through reduced energy costs and tenant satisfaction. Encouraged by the potential benefits of a high performance green building, Liberty Property Trust is building the Comcast Center in Philadelphia, Pennsylvania, (the tallest LEED certified building in the U.S.), and Circuit City has selected Savannah, Georgia, as the site for its first LEED certified store. These are just two examples of forward-thinking companies who have “learned how to LEED.”

For more information, e-mail Robert Stanz at robert.stanz@hklaw.com or by calling toll free, 1-888-688-8500.