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Green Building Legal Apocalypse Christopher W. Cheatham LEED AP, Esq. Kyle Wilso Douglas Reise LEED AP, Esq. Kyle Wilson

The Green Building Legal Apocalypse

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The LEED rating system was never meant to serve as a building code. Yet, cities and states are mandating LEED for private construction. This presentation describes how LEED private construction mandates will result in a green building legal apocalypse.

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Page 1: The Green Building Legal Apocalypse

Green Building Legal Apocalypse

Christopher W. Cheatham LEED AP, Esq.

Kyle Wilson

Douglas ReiserLEED AP, Esq.

Kyle Wilson

Page 2: The Green Building Legal Apocalypse

One Teaching Point:Cities must stop mandating LEED for private

construction

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Agenda

• What is LEED? • Two LEED Legal Issues• LEED Mandates• Legal Issues + LEED Mandates =

Green Building Legal Apocalypse

Page 4: The Green Building Legal Apocalypse

What is LEED?

Page 5: The Green Building Legal Apocalypse

What is the US Green Building Council?

I’m not a government

body!

Page 6: The Green Building Legal Apocalypse

What is LEED (and green building)?

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More acronyms?

I’m not a government body

either!

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GBCI contracts to third parties

“GBCI is taking over those reviews directly, both through hiring to increase its own capacity, and through contracting with LEED reviewers. . . .”

-Environmental Building News,

July 6, 2010

3rd PartyLEED reviewers

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Construction Completed

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Can GBCI decisions be appealed?

• Appeal fees are $500 per credit. • All appeals of final review decisions must be

filed within 25 business days of GBCI's posting of the final review decision

• All appeals shall be conducted in accordance with the GBCI Appeal Review Policy

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Who is responsible for LEED certification?

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If a city mandates LEED…

…a non-governmental entity determines compliance with no

independent appeal

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LEED Legal Issues on the Horizon

Challenges and Decertification

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LEED Certification Challenges

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9.2 Certification Challenge Overview:

“GBCI may initiate a certification challenge thereby revisiting its determination that the submitted documentation properly demonstrates that the project satisfied all credits, prerequisites, and MPRs necessary to achieve the awarded level of LEED certification.”

“Based on the final determination of such a challenge, GBCI retains the right to reduce the level of LEED certification awarded or revoke an award of LEED certification altogether.”

LEED Certification Challenges

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9.2 Certification Challenge Overview:

“A project owner may defend against such certification challenge by electing to participate in the process described below.”

9.3 Basis for an Initiation of a Certification Challenge

“GBCI encourages third parties who wish to make a complaint, or bring to light information affecting the grant of LEED certification . . . .”

LEED Certification Challenges

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Who will challenge?

Angry mobs

Business competitors

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The First LEED Challenge• Northland Pines

High School

• LEED Gold in 2007

• Challenge filed in 2008

• Alleged non-compliance with ASHRAE 90.1 and 62.1

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The First LEED Challenge

In the process of its review, USGBC engaged two extraordinarily qualified engineering consultants (Taylor Engineering and Horizon Engineering) to review the technical merits of the prerequisites and credits in question.

Further, USGBC staff performed a site visit of the school.

-Susan Dorn, USGBC General Counsel

LEED challenges

will be expensive…

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LEED Decertification

Decertification police seizing a

LEED plaque

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The problem: many LEED buildings are not performing as modeled

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The Solution: LEED Decertification

[USGBC CEO Rick] Fedrizzi predicts that data will be used to enforce performance in the future.

"Once a LEED plaque is assigned to a building, and there is proof that the building is no longer performing the way that it should, there's a very good chance that that information will then result in the ability for USGBC to remove the certification from the building — most likely on our website," he says.

-NPR, Sept. 8, 2010

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Challenges+ Decertification= LEEDigation

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LEED Mandates

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Various initiatives (mandates, incentives, and other legislation):

43 states384 cities/towns58 counties 14 federal agencies

LEED Policy

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D.C. Green Building Act

January 1, 2012Private construction > 50K SF LEED certified

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What’s the enforcement mechanism?

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D.C. Green Building Act“(b) On or before January 1, 2012, all applicants for construction governed by section 4 shall provide a performance bond”

“(g) All or part of the performance bond shall be forfeited to the District and deposited in the Green Building Fund if the building fails to meet the verification requirements described in sections 3 and 4.”

Page 30: The Green Building Legal Apocalypse

D.C. Green Building Act

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Baltimore City

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Green Building Legal Apocalypse

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Greening the Codes, USGBC

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LEED mandate+ Enforcement Mechanism= LEEDigation

Projects will fail…

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Shaw Development v. Southern Builders

Shaw retained Southern Builders to construct $7 million condo project

Shaw sought LEED Silver certification

Projects have failed…

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Shaw Development v. Southern Builders

The Contract

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Shaw Development v. Southern Builders

The Contract

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Shaw Development v. Southern Builders

The Allegations: Breach of Contract

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Shaw Development v. Southern Builders

The Allegations: Negligence

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Shaw Development v. Southern Builders

The Damages

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One Teaching Point:Cities must stop mandating LEED for private

construction

1. Who is responsible?2. LEED is not a building code3. LEEDigation

Page 42: The Green Building Legal Apocalypse

Visit Our Blogs

Green Building Law Updatehttp://www.greenbuildinglawupdate.com

The Builders Counsel Blog http://blog.reiserlegal.com/

Kyle Wilson

Page 43: The Green Building Legal Apocalypse

Contact Us

Christopher W. CheathamLEED AP, [email protected]

Douglas ReiserLEED AP, [email protected]

Kyle Wilson