Building a Green Maryland : Maryland Green Building Lawyer & Attorney : Megan Reuwer : The Law Offices of Megan L. Reuwer, P.A. : MD Green Building, Sustainability

Howard County Council Member Calvin Ball has introduced a bill, co-sponsored by Council Member Courtney Watson, that would give property tax credit relief to homeowners of newly constructed R-2 and R-3 zoned homes in Howard County if those homes are rated LEED Silver, or found to be an equivalent to LEED Silver by the Director of Inspections, Licenses, and Permits.

The bill, CB-55-2011, marks the first time that Howard County has considered a residential property tax credit for green homes.  It could prove to be a major incentive to potential home buyers who are otherwise on the fence about purchasing a "green" certified home, for it provides that the homeowner may receive a 100% property tax credit for the first year, a 75% property tax credit for the second year of ownership, a 50% property tax credit for the third year of ownership, and a 25% property tax credit for the fourth year of ownership.  After four years, the credit will expire, and the homeowner will assume full responsibility for payment of the property tax. [Several news publications have incorrectly read the bill, and have confused the amount of the property tax credit along with the qualifications for attaining the credit.]

It's important to note that the property tax credit runs with the land - thus, if the owner of an R-2 or R-3 home that has received the credit sells his or her home after year 1, the new owner of the green home is eligible to receive the property tax credit for year 2 and beyond (assuming the new owner retains ownership and makes application to the County to receive the credit). An R-2 or R-3 home, as defined by the County, includes single family detached homes, townhomes, and low-rise apartment buildings (that do not have a commercial component).

I think that CB-55-2011, if enacted, could prove to be a win-win situation for both homeowners in Howard County and for the County itself.  The building industry has, as we all know, slowed down considerably during this economic downturn.  If CB-55-2011 can provide this great incentive directly to a homeowner, while simultaneously promoting green construction in the County, then everyone benefits.

There will be a Legislative Public Hearing on CB-55-2011 on Monday, November 21, 2011 at 7:30pm in the Banneker Room, George Howard Building, 3430 Court House Drive, Ellicott City, MD 21043.

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On May 11, 2011, HB 972 was signed into law. This is enabling legislation that allows the Department of Housing and Community Development to adopt by regulation the International Green Construction Code and authorizes local jurisdictions to adopt and make local amendments to the International Green Construction Code.  It becomes effective on March 1, 2012.

Will we soon see local jurisdictions begin to adopt the IGCC in its entirety or make amendments to the Code?

• Probably. Maryland is an environmentally progressive state, and many of its jurisdictions have been quick to incorporate some form of green building requirements or incentives into their local laws, therefore, it's easy to anticipate that provisions of the IGCC may be appealing to local governments as they continue to mandate "green."

So what is the IGCC?

• It is intended to provide model code language that is designed to link together concepts of green building design, building performance, and building safety. It is an overlay code that is intended to advance our existing codes, and uses provisions of the International Energy Conservation Codes as a baseline.

Similar to other green building initiatives, the IGCC focuses on things like energy conservation, water efficiency, building owner responsibilities, site impacts, building waste, and materials and resource considerations. Unlike other green building initiatives (LEED being one example), the IGCC, if adopted by your local jurisidiction (in whole, or in part), will become enforceable and mandatory as part of regular code compliance.

Therefore, the provisions that local jurisidictions choose to adopt and/or to amend will be very important for builders and developers. If and when your local jurisdiction introduces legislation to adopt the IGCC, you will want to become involved in that process as early as possible to voice your concerns. The beauty of HB 972 is that it gives local governments the flexibility to pick and choose those provisions of the IGCC that will work based on that locality. We'll take a look at some of the model language from the IGCC in a follow-up post so you'll be aware of some of the important provisions of the code.

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Quick Synopsis:

Current Maryland law does not specifically address comprehensive green building standards with respect to residential structures; HB 630 changes the status quo to require that the Maryland Department of Housing and Community Development (DHCD) encourage the construction of new "high-performance homes."

Current Green Building Law in Maryland:

•  Maryland High Performance Buildings Act (Ch 124 of 2008): requires that most new or renovated State buildings and new school buildings meet or exceed either USGBC’s LEED criteria for a Silver rating or a comparable rating according to a nationally recognized, accepted, and appropriate standard approved by the Department of Budget and Management and the Department of General Services.
• Maryland High Performance Buildings Act (Ch 527 & 528 of 2010): further required that community college capital projects that receive State funds comply with the State’s High Performance Buildings Act (i.e., achieve at least a LEED Silver rating). Chapters 527 and 528 allow community colleges to receive a waiver from this requirement under the Act’s existing procedures.
• Maryland has also adopted several energy efficiency and conservation related building code standards deemed important to reducing greenhouse gas emissions and lowering energy costs. Chapter 294 of 2009 required DHCD to adopt the International Energy Conservation Code (IECC) and to consider changes to the International Building Code (IBC) to enhance energy conservation and efficiency.

HB 630:

• The bill requires the Maryland Department of Housing and Community Development (DHCD) to encourage the construction of new “high-performance homes.”  A high-performance home is defined as a new residential structure that meets or exceeds the current version of either the Silver rating of the International Code Council’s 700 National Green Building Standards, or the Silver rating of the U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) for Homes Rating System.

Analysis:

A couple of thoughts:

1. It’s great that this Bill puts in place the flexibility to choose between LEED and the National Green Building Standard (for previous posts analyzing the differences between LEED and the NGBS, click here and here). Flexibility in choosing what system works best for each individual project is key.
2. Whether this Bill will be implemented with any teeth remains to be seen – what does “encourage” the construction of high-performance homes really mean? To me, this reads as somewhat of a “feel good” bill – it has nice intentions, but no real teeth. This isn’t exactly a criticism: given the economy and the general state of the residential housing market, a new government mandate demanding that builders build homes to a Silver level would not be feasible; therefore, a bill “encouraging” green residential building may be just the thing to keep the green ball rolling while, at the same time, remaining sensitive to current market conditions.

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The official end to the 2010 Maryland legislative session came on midnight of April 12, 2010. In the interim time period, several bills that had passed both the House of Delegates and the Senate have been signed by the Governor and have become law.  Others are still waiting either for the Governor's signature or to become law after the veto period expires after presentment to the Governor.

There were a lucky few that passed both the House and the Senate, including a bill requiring counties to develop recycling plans for fluorescent and compact fluorescent lights; a bill requiring state agencies to develop road salt management best practices; a bill establishing the Maryland Sustainable Growth Commission which will make recommendations on changes to state and local laws to achieve state smart growth planning goals; and a bill that reestablishes the Heritage Structure Rehabilitation Tax Credit Program as the Sustainable Communities Tax Credit Program.

1. HB 685 Fluorescent and Compact Fluorescent Light Recycling - County Plans: This bill requires a county’s recycling plan to address a strategy for collecting and recycling fluorescent and compact fluorescent lights that contain mercury. The recycling plan must be revised to reflect the new requirements by October 1, 2011.
2. HB 903 / SB 775 Transportation - Road Salt Management - Best Practices Guidance: This bill requires the State Highway Administration (SHA), in consultation with the Maryland Department of the Environment (MDE), to develop a road salt management best practices guidance document by October 1, 2011, for use by local jurisdictions and the State to minimize the adverse environmental impacts of road salt runoff in the State. SHA must update the guidance document annually and make it available online.
3. HB 474 / SB 278 Smart, Green, and Growing - Maryland Sustainable Growth Commission: This Administration bill repeals the Task Force on the Future for Growth and Development in Maryland and establishes a Maryland Sustainable Growth Commission. The Commission will, among other tasks: make recommendations on the adequacy, coordination, and implementation of funding mechanisms and other State assistance for planning activities and infrastructure and land preservation needs; promote planning coordination and inter-jurisdictional cooperation; evaluate the continuing viability and effectiveness of specified smart growth indicators and recommend changes; develop and assist with smart growth educational and outreach programs; and recommend changes in State law, regulations, policies, and procedures necessary to achieve State planning goals.
4. SB 285 / HB 475 - Smart, Green, and Growing - The Sustainable Communities Act of 2010 This Administration bill reestablishes the Heritage Structure Rehabilitation Tax Credit Program as the Sustainable Communities Tax Credit Program, extends the program’s termination date through fiscal 2014, requires the Governor to include an appropriation to the commercial program in fiscal 2011 through 2014, and alters eligibility requirements for the program.

There were also some important bills that didn't pass both the House and the Senate, including a bill amending the High Performance Building Act which would have officially recognized the Green Globes program as a LEED "equivalent"; and a bill that would have cost developers some "green" in  stormwater remediation fees.

1. SB 479 High Performance Buildings - Green Globes Program: This bill broadens the definition of a high-performance building to include any building that achieves at least a two-globe rating according to the Green Globes Program adopted by the Green Building Initiative (GBI). It also requires the Governor to appoint an equal number of members associated with the Green Globes program and the Leadership in Energy and Environmental Design (LEED) program to the Maryland Green Building Council.
2. SB 686 / HB 999 Watershed Protection and Restoration Act: This bill requires each county and municipality, by July 1, 2011, to adopt local laws or ordinances necessary to establish an annual stormwater remediation fee and a local watershed protection and restoration fund to provide financial assistance for the implementation of local stormwater management plans. The bill also establishes specified reporting requirements for local governments and the Maryland Department of the Environment (MDE). MDE is authorized to adopt regulations.

All in all, there weren't very many environmental or green building bills that will specifically impact builders and developers (with the exception of the emergency stormwater regulations relating to extending the grandfathering period for certain projects which have been covered in prior posts).

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