Leadership in Energy and Environmental Design certification and how it could affect you

Presidential candidates are debating over "green collar jobs;" oil companies are campaigning to show their environmentally responsible sides; and the phrase "carbon footprint" has become part of contemporary vernacular. No doubt, we are becoming more and more environmentally aware. But, have we figured out, in a practical way, how to move towards the greenness that we desire? One system that has been created to address environmental considerations in the development context is known as LEED or Leadership in Energy and Environmental Design.  This rating system, established in 1998, and updated in 2005 by the U.S. Green Building Council, seeks to limit the environmental impacts of building by examining the sustainable siting, water efficiency, energy usage and atmospheric consideration, materials and resources, indoor environmental quality, and innovation and design process of new and renovated structures.  The way this system works is that individual LEED criteria, which range from the broad, such as the protection or enhancement of the existing environment, to the specific, such as eliminating the use of potable water for the irrigation of landscaping, are assigned point values, with a maximum of 69 possible points.  The addition of all of the points earned by a particular building or project results in a LEED classification in one of the following five categories: not certified, certified, silver, gold, or platinum.  In recent years, the development of LEED certified buildings appears to have caught on.  For example, Bank of America made news by breaking ground at 1 Bryant Park in New York City for the construction of the first skyscraper designed to achieve LEED platinum status.  It is hoped that innovative features such as rain water capture, automatic ventilation of excess carbon dioxide, and the use of "ice batteries" to cool the building will increase energy efficiency and make 1 Bryant Park a more desirable place for tenant occupation.  According to the Green Building Council, there is an average increase of six to seven percent in total building costs for the construction of a LEED platinum building, with smaller increases in cost for lower levels of certification.  The claim is that, in addition to improving the environment, LEED certification actually lowers the lifetime costs of operating and maintaining a building and the initial capital expenditures ultimately pay for themselves.  A study published by the State of Colorado's Energy Office in April of 2007 supports this theory, saying that the net present value of energy savings over the lifetime of a LEED certified building would offset additional initial capital expenditures. The application of LEED certification extends beyond those interested in improving energy efficiency.  Numerous government bodies in the United States have adopted or proposed legislation requiring that new buildings be LEED certified.  New York City's Green Building Law, which went into effect on January 1, 2007, requires new municipal projects to be LEED certified.  The New York State Assembly is currently considering Bill A2005-B, which would require all new or substantially reconstructed agency occupied, state-owned buildings over 5,000 s/f to be green buildings.  Washington D.C.'s Green Building Act of 2006, has gone one step further to become the first legislation requiring LEED certification for both public and private projects within the District.  As LEED standards gain more legitimacy through the nationwide adoption of legislation, individual developers will need to familiarize themselves with the contents of LEED standards and alter their building methods and materials to incorporate these new standards.  Furthermore, because LEED certification requires compliance with all federal, state, and local laws, builders may find themselves in the position of negotiating conflicts between local building codes and LEED criteria. A proactive way to address these issues is to learn the contents of the LEED standards right now and determine how close or far current practices are from LEED certification.  A number of LEED criteria are simple and can be incorporated into any building without much effort.  LEED standards also recommend the use of recycled materials and limit the chemical contents of materials to be used in buildings.  If you are not using the materials described in the LEED criteria, you could investigate if these materials are readily available and if they would result in a cost increase.  If there are none, or only a minimal cost increases, switching to LEED compliant materials now will ease the transition to LEED certification if and when it becomes required or cost-effective for your business.  By understanding and gradually adopting LEED recommendations, you can use any future legislation to your advantage by continuing business as usual while competitors struggle to catch up. Kevin Walsh is an associate with Certilman Balin Adler & Hyman, LLP, Hauppauge, N.Y.