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A Lawyer's Role in Green Building

published January 14, 2008

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( 22 votes, average: 4 out of 5)
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<<It turned out to be an excellent move for Sherman because her green building practice has grown rapidly since the firm started it a little more than a year ago.

"Clients came to us for more information on green buildings," Sherman said. "I seemed like the likely choice to lead the green building practice since I have a strong background in environmental law."


Sherman began her new duties by doing research into what kinds of clients could benefit from green building legal work — clients like local governments, developers, builders, property owners, and home owners. She also identified the kinds of local, state, and national incentives her clients could receive by building green.

One of the first things that needed to be done, she said, was to come up with a meaningful definition describing exactly what a green building is.

"When talking about green buildings, not many people understand what it means for a building to be 'green,'" Sherman said. "Being 'green' means the green building is certified by an independent entity that the building has met specific green standards. Currently, there are several green building certifications that are recognized."

The most recognizable green building certification is "LEED" — Leadership in Energy and Environmental Design. LEED certification is offered by the U.S. Green Building Council, which has established a list of standards for new construction, existing buildings, schools, retail locations, commercial interiors, and healthcare facilities. LEED also offers a pilot program for neighborhood development.

A building obtains a LEED green building certification by incorporating specific green building improvements or initiatives. Each green building improvement is assigned a point value. A building must incorporate enough improvements to meet the requisite point requirements for the desired LEED certification. For new construction LEED has four levels of green building certification: (1) Certified (26-32 points), (2) Silver (33-38 points), (3) Gold (39-51 points), and (4) Platinum (52-69 points).

Florida has its own version of green building certification, offered by the Florida Green Building Coalition, which is endorsed by the Florida Home Builders Association. They offer green building certifications for homes, high-rises, commercial buildings, and development. The Florida Green Building Coalition certification is similar to the LEED certification in that a building gets green certification by obtaining the requisite points which are assigned to specific green building improvements.

"In the last few years, the popularity of these programs has skyrocketed," Sherman said. "Years ago it was more of a grassroots idea and not mainstream — local governments weren't really talking about it at that point. Now we have very sophisticated clients that have in-house green staffs working only on green building issues."

Very quickly, buyers have begun demanding greener buildings, and they have demonstrated a willingness to pay extra for higher green standards. Developers and sellers are spending time on and paying attention to the marketing of those green features, knowing that buyers will be paying close attention.

"People are recognizing that green buildings are better for the environment, which is a real value, and people will pay more for homes and other buildings if they are less environmentally obtrusive," Sherman said. "In addition, those buildings are more energy efficient and they require less maintenance, so they are economically smart in the long run."

The benefits for developers go beyond marketing, according to Sherman. Developers who deal in green buildings can get fast-track permitting, lower permit fees, and tax credits as well.

Fowler White saw the benefits of such a specialty practice area early on, and the firm is well positioned to take advantage as interest in green building grows.

"A few years from now, incentives from local governments will be commonplace," Sherman said. "One of the things we are advising our clients [on] now is how best to comply with the green standards that are being developed by local governments."

Lawyers can deliver many benefits in the green building process, according to Sherman. They can sort through all the various green building processes and help assign responsibilities in the earliest days of a project, Sherman said. They are often the right people to quarterback a new green project and help pull all the components together at the right time. They can help coordinate with the appropriate certifying officials to ensure that the green certification occurs as soon as possible.

They also can be invaluable during negotiations with local governments, builders, contractors, and buyers of the green building product. For example, "if a building is supposed to be built green, the contracts and documents need to specify what that means," Sherman said.

"Specifically, all parties must agree on what entity will be issuing the green building certification (LEED, FGBC, etc.), what type and level of certification is contemplated, and what specific green building improvements should be implemented," she added. "Contracts might also include provisions addressing delays in certification or consequences for failure to obtain certification. Lawyers also draft restrictive covenants — if a green house is built with solar panels, for example, you may want language in a restrictive covenant to ensure that solar panels will always stay on the house.

"Additionally, an attorney would be valuable if a government-funded green building loses its green certification. Issues like these are best handled by an attorney who is well versed in the green building area."

Fowler White's environmental and land use practice group represents major developers and businesses including residential, commercial, and industrial developers; electronic manufacturing firms; chemical plants; phosphate operations; petroleum storage facilities; and commercial and industrial property owners and operators.
 

published January 14, 2008

( 22 votes, average: 4 out of 5)
What do you think about this article? Rate it using the stars above and let us know what you think in the comments below.