New Residential Green Building Bill Passes in Senate

 

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.

Announcing - The Law Offices of Megan L. Reuwer, P.A.

I want to very briefly announce the formation of my new law practice, The Law Offices of Megan L. Reuwer, P.A. The opening of my own doors is a very exciting milestone in my life and I am thankful for those who have helped to make it possible! If you're ever in the area, I invite you to stop by for a tour of my new space located at 5300 Dorsey Hall Drive, Suite 107, in Ellicott City, Maryland. I look forward to keeping you informed of developing legal issues impacting the building and development industry on this blog, and I look forward to working with you in the future should you ever require real estate related legal services.

Announcing - The Law Offices of Megan L. Reuwer, P.A.

I want to very briefly announce the formation of my new law practice, The Law Offices of Megan L. Reuwer, P.A. The opening of my own doors is a very exciting milestone in my life and I am thankful for those who have helped to make it possible! If you're ever in the area, I invite you to stop by for a tour of my new space located at 5300 Dorsey Hall Drive, Suite 107, in Ellicott City, Maryland. I look forward to keeping you informed of developing legal issues impacting the building and development industry on this blog, and I look forward to working with you in the future should you ever require real estate related legal services.

Baltimore City: Benefits and Burdens of New LEED Law

Starting July 1, 2009, all new construction and major renovation projects in Baltimore City must adhere to the LEED-Silver standard.

As Robbie Whelan explains in his article, Legislating LEED: Developers worry about new city law , the new law basically incorporates LEED standards into the city's building code. What does this mean for Baltimore City builders? In a nut shell: 

If you don't commit to building green, you will no longer be approved for a building permit in the city. If your building or renovation does not comply with LEED, you will not be issued an occupancy permit.

There are both benefits and burdens associated with "going green."  On the one hand, employees working in new commercial or renovated interiors may enjoy greater health benefits associated with cleaner air and lower emissions from furniture and materials.  Building owners could enjoy potential energy savings and attract environmentally-conscious tenants. Baltimore itself could become a model "green" city, drawing tourists and national media attention.

On the other hand, one of the difficulties in holding a building to attain LEED- Silver certification is that it necessitates the involvement of the U.S. Green Building Council, the nonprofit that administers the LEED program, and its sister program, the Green Building Certification Institute, which operates LEED Online. Any transaction can be complicated by the involvement of third parties, but the real issue here is that the points needed to meet the certification requirements aren't formally "achieved" until after the building has undergone construction.

 

So what's the big deal?

Well, as one builder recently remarked during an event I attended, "once the building is built, it's built." While this might be a bit of an overstatement, what this really means is that Baltimore City builders are going to have to pay extra care and attention during the design and planning stages to ensure that they will be able to implement the credit requirements that they need to reach certification. They will likely have to involve key members of the project team at earlier stages and may have to educate contractors and subcontractors on the credit requirements that they intend to meet.

Going green definitely has it benefits, but as the first Baltimore City builders after July 1, 2009 are likely going to discover, it also has its burdens.