What can we learn from D.C.’s green building law?
The following post is by Danielle Rodabaugh:
It’s no secret that decisions made in Washington, D.C., frequently lead the way for progressive industry regulation overhaul. This time, however, the overhaul only affects the district’s construction market rather than the national industry — at least for now.
D.C.'s green building law may have ripple effects elsewhere in the U.S.
The district’s Green Building Act of 2006 was a revolutionary piece of legislation that changed the expectations construction professionals in the district must meet. Since its enactment, construction professionals working in Washington, D.C., have been adjusting to more stringent green building regulations that apply to a wider range of projects than ever before.
The GBA didn’t fully go into effect until Jan. 1, 2012, however, and industry stakeholders continued to scrutinize it through December 2011. Before we delve into how the GBA could affect the future of green building across the country, let’s review the history of this controversial law and take a look at its current state.
The GBA requires that all non-residential buildings within the district larger than 50,000 square feet be built to meet LEED certification standards. Before the GBA, various state and local government agencies across the nation had required that certain publicly funded projects be LEED certified. For example, Colorado has required LEED certification on all state buildings since 2005. However, the GBA extended to include privately funded projects as well.
The U.S. Green Building Council developed Leadership in Energy and Environmental Design (LEED) guidelines as a way to identify practical and measurable green building strategies. LEED guidelines focus on design, construction, operations and maintenance. Developers, owners and construction professionals can submit their projects for LEED certification, which verifies that a building, home or community was designed and built using techniques aimed at achieving high performance in certain areas of human and environmental health.
The most controversial aspect of the GBA was that it originally included a stipulation requiring contractors to purchase a performance bond guaranteeing their intention to comply with LEED. To put it simply, the bond would hold the contractor financially liable for building a structure that met the minimum LEED standards.
Although performance bonds are commonly required for construction projects, both public and private, the “green performance bond” type required by the GBA simply was not feasible.
Based on the GBA’s initial wording, if a structure failed to meet LEED certification standards, the government could make a claim on the bond to collect money that would be put in a district fund. Construction professionals, surety providers and contract lawyers began discussing how to best handle the new, strange bond requirement. Ultimately, surety providers argued against it.
Because so many parties are involved with any one construction project, surety professionals asserted that the blame could not solely be placed on the lead contractor. As such, they made it clear that the risk associated with such a bond would be far too great for them to back. The state of the GBA remained in limbo for years as rumors and speculation ensued. Finally, less than a month before the GBA was scheduled to go into full effect, the council passed the Green Building Compliance, Technical Corrections, and Clarifications Act of 2012 as an amendment to the GBA.
With the amendment in place, contractors can now choose one of four ways to guarantee that structures will meet LEED certification standards:
• deposit cash in an escrow account (in a financial institution within the district) and name the district on the account
• provide an irrevocable letter of credit from a financial institution authorized to do business in the district
• provide a surety bond secured by the applicant to ensure compliance
• submit a binding pledge that the applicant will fulfill the current LEED standards for commercial and institutional buildings at the certified level within 2 years of receipt of the certificate of occupancy
No matter which option contractors choose, they guarantee that their structures will meet LEED standards. If they fail to do so, they’ll be held accountable for the consequences, financial and otherwise.
When sweeping changes are made to construction standards, a ripple effect frequently follows. Contractors across the country should keep their ears open for discussions about new LEED certification requirements in other areas. As a construction professional, the best way to plan for the future is by learning from the past. Such is the case with the GBA.
Whether you agree or disagree with the GBA, I encourage you to make sure you’re informed of similar changes that could affect your local construction industry. Then, make sure your voice is heard. Those who spoke out against the initial wording of the GBA were successful in arguing their cases.
Knowledge is power; the more informed you are about green building expectations, the better prepared you’ll be to deal with the inevitable changes.
Danielle Rodabaugh is the director of educational outreach at SuretyBonds.com.
Study makes a case for developing more living buildings
The following post is by Kathleen O'Brien:
In early May, I traveled to Portland to the Cascadia Green Building Council's annual Living Future Conference. I enjoyed the conference a lot, and especially the very practical financial focus in several of the sessions.
Moving the needle on real estate investment was the topic of a Living Future panel including Jason Twill (Vulcan), David Baker (Earth Economics), Theddi Wright Chappell (Cushman & Wakefield), Stuart Cowan (Autopoiesis). They noted that investment in sustainable real estate seems to be "topping out" in the market at this time — at LEED Platinum. Their hope is to help the market cross that barrier into higher realms of sustainable achievement, such as the Living Building Challenge.
Jason, David, Stuart, and Theddi are coauthors of "Economics of Change: Catalyzing the Investment Shift Towards a Restorative Built Environment." The research study was funded by Bullitt Foundation, a long time supporter of environmental protection in the Northwest. The point of the study was to "provide evidence of monetized environmental and social benefits...currently not considered in conventional real estate model(s)." The authors hope to provide a defensible rationale for including these public and private benefits into investment models, appraiser methodologies, and supporting policies. This is especially important for U.S. real estate investments where ROI and IRR are the ultimate drivers of most transactions.
The report lays out the ABC's, if you will, of Ecosystem Goods and Services, the potential Ecosystem Services that Living Buildings might provide, and finally the opportunity to measure, monetize, and value those ecosystem services. The study takes a scholarly approach, a step up from the early days when we in the green building field had to rely more on reason and intuition, since we had little real data to base our assumptions on. (Not that reason and intuition is bad...it's what got us here, yes?).
The report also introduces the concept of integrated real estate investment modeling. From this layperson's view, it seems to build on the conventional model, rather than replace it — an approach that makes a good deal of sense. The methodology they propose will allow many environmental and social benefits currently valued at zero to be seen as economically valuable, and therefore marketable. In the next phase of their work, they plan to produce detailed calculations and case studies of the environmental and social benefits of Living Buildings, test the impact of these values of valuation models or appraisals, and create an open source prototype of the integrated real estate investment marketing tool to "demonstrate how environmental and social benefits can be embedded within a pro forma in an new building development context."
In addition to taking this tool out to the real estate development communities (appraisers and valuation specialists), they hope to provide a basis for changes in local, state, and federal policy that will acknowledge public benefits of Living Building development and incentivize it.
As Theddi noted, "right now investors are going for the low hanging fruit — energy efficiency — for example. We need to provide sufficient rationale if we want them to go beyond that."
Hear, hear.
Kathleen O'Brien is a long time advocate for green building and sustainable development since before it was "cool." She lives in a green home, and drives a hybrid when she drives at all. Having recently sold her firm, O'Brien & Company, she is now focused on leadership work with those "still in the trenches." For more info see www.emergeleadership.net
Seattle moving towards LEED gold city buildings. Is that a high enough standard?
The city of Seattle is planning to increase its requirement that city owned, financed or operated buildings larger than 5,000 square feet be LEED gold, up from LEED silver. Here's my question: is it enough?
In 2000, Seattle broke some major ground when it required city buildings be LEED silver. If you go back to 2000, LEED was still really, really new. That's reflected this DPD data slide supporting policy changes here. Check it out, in 2003 and 2004 there were more city LEED buildings than those in the private sector. That switches in 2005 and after 2006, LEED in the private sector continues to grow by leaps and bounds each year.
I started this job at the DJC at the start of 2007 and in the time I've been here,
Now, the city is looking to create a more robust policy, the outlines of which can be seen in that slide linked to above. There will also be a DJC story early next week explaining the likely changes. Generally, the city is going to require LEED gold for buildings where it previously would have required LEED silver. It also expands the program to consider major renovations and tenant improvements, sites and small projects. Sandra Mallory, DPD's Green Building Team program manager, also said the city wants to pilot a living building and six Sustainable Sites Initiative projects, three of which are already in development. It's some big changes. But are they big enough?
The question seems simple but also touches on the changing role of city government, especially because green building is so much larger today than it was back in 2000. Back in 2000, Seattle took a strong leadership role in its silver requirement. Making a similar, envelope-pushing switch today would likely require city buildings be net-zero energy or living buildings. Given today's market, I'm not sure the city could make that change, even if it wanted to. Financially, I don't know that it would make sense, or that it could even be feasible for all projects. Also, the private sector has already taken the lead in both these areas.
Then again, if Seattle wants to keep saying it is the "greenest city in the country," something that seems to be getting a bit outdated as green and sustainable elements become mainstream, wouldn't it have to make a ground-altering change like that? Additionally, most of its buildings in recent years have met LEED gold, though they weren't required to. According to that slide, it still doesn't have a LEED platinum project.
What do you think? Should the city have made a stronger stand or is LEED gold fair for now? Also, how do you think the city's role in supporting green building should change in the future? Eventually, will the city require all its buildings be net-zero or meet living status? It's a curious question and I'd love to hear your responses.
GSA’s $72 million Seattle HQ requires performance
Somehow, I missed posting about a recent story I did on GSA's $72 million headquarters for the Seattle District of the U.S. Army Corps of Engineers. The story appeared in the June 27 edition of the DJC.
From a sustainable viewpoint, it's a fascinating project to consider. It's designed
The project aims to inspire a new era of sustainable workplaces with a goal of being the region's most energy efficient air conditioned building. Models say it will have an energy score of 100, placing it in the top 1 percent of U.S. buildings for energy performance. It may reach LEED platinum, uses geothermal heating and cooling combined with structural piles and is heavily daylit.
But what I think is one of the most interesting elements is GSA knew how much energy it wanted the building to use and asked competing shortlisted teams to demonstrate how they'd get there as part of awarding the project. It went a step further by also requiring the project prove its energy performance during its first year of operation, basically requiring a guarantee from the team.
Generally, anything like this is a big no-no, as I understand it. Under no circumstance, from a legal perspective, should a team guarantee to meet a requirement related to LEED or sustainability. But this is the GSA, the largest
As LEED continues to proliferate and green building fades into the background even further as just a part of good building, do you think this type of performance requirement will become more common? Or is this just a one-time deal?
Canadian Building aims to be greenest in North America
Living Future 2011 in Vancouver, B.C . could have begun better. My first event was a tour of the new Centre for Interactive Research on Sustainability space at University of British Columbia. To get there, all 30 of us had to wait 20 minutes, get on a 40 minute bus ride and then trudge through 15 minutes of pouring, pouring rain. Needless to say, I should have remembered my umbrella. A kind soul on the tour (not from the Northwest, obviously, who
Thankfully, the tour was totally worth it. The CIRS Center is poised to be an incredible project, once complete. The four-story, 60,000-square-foot dry-lab research building has targeted both the Living Building Challenge and LEED platinum. Its goal is to be the most innovative building in North America. The building should be ready for occupancy by the end of May. It was designed by Busby Perkins + Will.
When designing and building it, the team concentrated on equally balancing the need to be net positive, or to give back more energy and environmental benefit than the building took from the grid; to be humane, or being constructed and thought of with the best impacts on humans possible; and being smart, or cost effective and adaptive.
It will capture all rainwater, treat it and use it as potable water for those in the building to drink (this is what the Bullitt Foundation's Cascadia Center targeting living building status in Seattle wants to do, though code rules are making it tough). It will also treat all wastewater generated in the building and use it to flush toilets, urinals and for drip irrigation. This was a difficult thing to permit, said Alberto Cayuelo, associate director of the UBC Sustainability Initiative. All water will be treated, drank, reused, treated, reused and treated again. This is the first building in Vancouver, the team said, to do this. Water that hits the building's hardscapes will be redirected into the aquifer.
The building's price is $37 million Canadian, with a $22 million construction budget. Cayuela said the project will cost between 20 and 30 percent more than a LEED gold building.
“I’d be lying through my teeth if I said this building came in at no premium,” he said. “(But) on a total cost of ownership basis, we can recoup that investment in a few years.”
The project should save money through energy and water initiaves.
There’s a lot more that I can and will say about this project. But I’ m about to hear Majora Carter speak, so more info will have to wait for another story!
Tom Douglas’ 3 new restaurants in South Lake Union historic renovation
I attended a press event this morning for the completion of Amazon.com's fourth phase of headquarters work. Attendees were invited into the historic renovation of the Terry Avenue Building next door. Terry Avenue, located on Terry Avenue North between Thomas and Harrison streets, is soon to be the home to three (!!!) new Tom Douglas restaurants. Terry was designated a historic landmark in 2008. It was built in 1915, and was a hardwood flooring and cabinetry warehouse until the 1950s.
Surprisingly, the press release doesn't say much about the building's sustainable elements (other than it has the first green roof on a historic building in the city). Terry was part of Amazon's phase four and the release does say phase four buildings targeted LEED gold certification. From a sustainable standpoint, the fact that it is a historic renovation automatically buys the building some credibility. I asked Douglas why he liked the space. He pointed to the 1908 wooden pillar I was leaning against and said projects don't get much better than that.
Douglas also said the building is the first place he'd head during an earthquake, due to the extensive seismic renovations that went into it.
The three restaurants will all be open by mid-April. Cuoco, on the ground floor, will serve fresh pastas made in an open kitchen and will seat 100. Ting MoMo, a Tibetan dumpling cafe led by longtime Douglas chef Deyki Thonden, is to the east of the second floor and will seat 40. The Brave Horse Tavern, to the west of the second floor, will seat 150 and serve Americana food. Cuouco should open the last day of March or first few days of April. The other two restaurants will open the following week.
At the event, Ada Healey, vice president of real estate at Vulcan, said a number of things still have to happen in the neighborhood, including an up-zone. I chatted with Seattle City Council President Richard Conlin briefly at the event and he said council is trying to balance the needs of a new urban neighborhood with the need to protect the area's heritage. It is an especially pertinent time to discuss this topic as The South Lake Union Height and Density Alternatives Draft Environmental Impact Statement (EIS), which addresses this issue, is accepting comments until April 11. What do you think? Should South Lake Union be allowed to go higher? Or are there heritage elements in the neighborhood still to protect? Would love to hear your thoughts.
In the mean time, here are pictures! To see more, check out my Facebook page here.
King Street Station rehabilitation on track for platinum
This week, I toured King Street Station. For those of you who aren't aware, the 1906-built-station is in the midst of a $50 million renovation. The project is absolutely, totally and utterly incredible.
The main thrust of the project is a much needed seismic renovation. Seriously, the tons of steel being put into this project are indescribable. But King Street Station is also a historic building and must be maintained as such. Once the rehabilitation is complete, it will be very sustainable: it's on track to meet LEED platinum, up from a goal of LEED silver. Last year, the project's sustainable efforts were honored by AIA Seattle with a gold level award from the What Makes It Green event. ZGF Architects is the architect. Sellen Construction is general contractor.
Obviously, the most sustainable thing about the project is the fact that it is a historic renovation of an old structure, which retains the embodied energy inherent in the building. But the team went much further. Geothermal wells in the building will likely provide all heating and cooling. The main waiting room will return to its 100-year-old state of being naturally ventilated. Incredible effort has been spent to save, clean and better old building materials. All of these elements will be detailed in a future DJC story.
For now, I'll whet your interest with some photos of the space. As you can tell, I got to tour the inside of the clock tower, which is not part of the current project's phase. However it is really cool. To see more photos of the clock tower or tour, follow my page on Facebook here. And if you haven't voted for this blog yet as best of the web, please do so. For more info on that, see the post below.
Enjoy!
Read the DJC’s free Building Green Special Section
If you don't have a subscription to the DJC or don't click on our articles as they are locked, you might not know about our free special sections.
Special sections, written by people in a targeted industry for people in the industry, are free to read, meaning even you non-subscribers can access valuable information. Special sections come out about once a month and each section focuses on a different topic. This month's excellent topic is Building Green and I am thoroughly impressed with the breadth of this year's coverage.
The free special section is here.
In it, you'll find this excellent article by Michelle Rosenberger and Nancy Henderson of ArchEcology called "Watch out for 'greenwashing' by service providers." Among its interesting points, the article examines whether consultants can truly bring a LEED approach to a project without rigorous third party LEED certification. Interesting item to bring up.
There's this article by Constance Wilde of CB Richard Ellis reflecting on her personal experience of becoming a Certified Green Broker, and its values and benefits.
There's this great article by Joel Sisolak of the Cascadia Green Building Council called "Two Seattle projects set 'net-zero' water goals," which looks at the region's water infrastructure and two living buildings (The Bertschi School's Science Wing and the Cascadia Center for Sustainable Design and Construction, both covered previously in this blog) that plan to go off the water grid and their challenges in doing so.
Then there's this article by Elizabeth Powers at O'Brien & Co. on whether green parking lots can be (gasp!) green. I'll let you read the article to learn more.
The section also has articles from representatives of Skanska USA Building, Mithun, MulvannyG2, GGLO, Scott Surdyke, Sandra Mallory of the city of Seattle and CollinsWoerman on topics ranging from the city's role in evolving practices to big box stores, student housing and public housing.
So go ahead, check it out and enjoy!
Skanska’s Seattle development division bodes well for sustainability
One of the hottest real estate stories of the week is the news that Skanska is bringing its commercial development division to Seattle, signifying it sees growth in the regional market.
My colleague at the DJC, Benjamin Minnick, reported the news here. In the story, he reports that
The move is especially notable because Skanska will self-finance all its projects and says it won't necessarily develop projects owners are currently doing, such as apartments in today's times. Instead, the story says Skanska will look at the long term and what is a good buy now.
That's interesting obviously, because of the freedom Skanska has to build what it wants. But it also speaks to the potential for sustainable buildings.
Most developer's green goals are constrained by the cost of super green technologies. I've been told that green projects up to around LEED gold can be done at cost if you begin early. But if you want to go for the super green stuff - net zero energy, Living Building certification, fancy new technologies - there's still a hefty premium, even if there's a huge benefit.
According to the story, Skanska has already said all its projects built locally will meet LEED gold or higher standards, and will be located in urban core areas with strong employment growth. To read the company's sustainability policy, click here (beware- it's pretty overwhelming).
By self-financing its own projects, Skanska, already a leading green general contractor, has the opportunity to do some really incredible things. Additionally, if they plan to hold onto projects for a long time, rather than flip them, they have more of an incentive to invest in green technologies that only pay off over the long term.
I'm curious to see what kind of projects they pursue, what kind of sustainable goals they target, and what kind of green technologies they might choose to pursue that others wouldn't be able to. Of course, they could simply go the LEED gold route. Or they could build something really innovative.
If projects were self-financed and held onto for a longer amount of time, do you think we'd end up with a larger quantity of super green buildings? Or do you think teams would stick to the status quo?
$100 million class action lawsuit filed against LEED, USGBC
According to Environmental Building News, Henry Gifford, owner of Gifford Fuel Saving, has filed a class action lawsuit in federal court against the U.S. Green Building Council and its founders.
"The suit argues the USGBC is fraudulently misleading consumers and fraudulently misrepresenting energy performance of buildings certified under its LEED rating systems, and that LEED is harming hte environment by leading consumers away from using proven energy-saving strategies," the article says.
The lawsuit looks like it is based at least in part on research by Washington's very own New Buildings Institute.
I don't know the details so I will refer you to those that do: first, read the excellent Environmental Building News Article. For a more opinionated article, check out this Treehugger piece. For a lawyer's take, go to Green Building Law here. If you read the articles, don't forget the comments. There's some pretty interesting opinions.
This blog has covered green building problems before. For our related archives, click the tag 'problems' below.
DJC Green Building Blog
Welcome to the Daily Journal of Commerce Green Building Blog. Our focus is on green building issues in Seattle, the Pacific Northwest and anywhere that might interest you. If you have any comments or questions, please email maudes@djc.com.
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