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Green Building

Green Building. Anna Mills The Van Winkle Law Firm Asheville and Hendersonville, NC 828-258-2991 amills@vwlawfirm.com. What is Green Building?. Less environmental impact Sustainable/non-toxic materials Energy and water efficiency Higher indoor air quality Sites.

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Green Building

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  1. Green Building Anna Mills The Van Winkle Law Firm Asheville and Hendersonville, NC 828-258-2991 amills@vwlawfirm.com

  2. What is Green Building? • Less environmental impact • Sustainable/non-toxic materials • Energy and water efficiency • Higher indoor air quality • Sites

  3. Why Are We Interested in Green Building? • Personal Environmental Concerns • Consumer Demand • Incentives

  4. Making Green for Being Green: Incentives • Federal Tax Credits for New Energy Efficient Homes • For builders • Up to $2000 per site-built home • Homes must sell by December 31, 2009 (credit was renewed by Congress) • Home must meet energy efficiency standards

  5. Making Green for Being Green: Incentives • North Carolina Green Business Fund • Grants for development of green building industry in NC • development and commercialization of the green building process • Next round of grants - 2009 • http://www.ncscitech.com/gbf/index.htm

  6. Making Green for Being Green: Incentives • Asheville • Building Permit Fee Refund -HealthyBuilt Home Certification: $100 -Energy Star Rating: $100 -Solar Energy Systems: $50 • Plan Review Fee Reduction for Buildings seeking LEED Certification

  7. Making Green for Being Green: Incentives • SESSION LAW 2008-22/SENATE BILL 1597  • Land‑Use Development Incentives. Cities and towns Counties and municipalities, for the purpose of reducing the amount of energy consumption by new development, and thereby promoting the public health, safety, and welfare, may adopt ordinances to grant a density bonus, make adjustments to otherwise applicable development requirements, or provide other incentives to a developer or builder within the county or municipality and its extraterritorial planning jurisdiction if the developer or builder agrees to construct new development or reconstruct existing development in a manner that the county or municipality determines, based on generally recognized standards established for such purposes, makes a significant contribution to the reduction of energy consumption. • "SECTION 2. This act applies only to the Cabarrus County, the Cities of Asheville, Charlotte, Concord, Durham, Kannapolis, Locust, and Wilmington, and to the Towns of Carrboro and Chapel Hill.Carrboro, Cary, Chapel Hill, Harrisburg, Midland, Mount Pleasant, and Stanfield."

  8. Making Green for Being Green: Incentives • Black Mountain Rebate • $500 • Bronze HealthyBuilt Home or any level LEED

  9. Making Green for Being Green: Incentives • Progress Energy -Energy Star: 5% discount on utility bill • Green Mortgages • Reduced Property Insurance Costs

  10. Making Green for Being Green: Incentives • Incentives in Other States -priority in permit process -expedited plan review -tax refund, abatement or credit -bond or other financing -density bonuses

  11. Making Green for Being Green: Incentives • Portland: Carbon Feebate System • Energy Performance -Greater than 45% better than code -receive incentives: $, density bonus, transfer of development rights and accelerated permitting -Greater than 30% better than code -avoid carbon pollution fee -Code: one time carbon pollution fee

  12. What is the Yardstick?:Green Credentials • How do you let people know you offer green buildings or services? • What benchmarks do people want?

  13. What is the Yardstick?:Green Credentials • Credentials for professionals • LEED Accredited Professional • http://www.gbci.org/ • Certified Green Professional • http://www.nahb.org/page.aspx/category/sectionID=1174

  14. What’s the Yardstick: Green Building Credentials • Creditentials for Buildings • LEED (Leadership in Energy and Environmental Design) Green Building Rating System -LEED for Homes -LEED for New Developments (Pilot) -Silver, Gold, Platinum U.S. Green Building Council http://www.usgbc.org/DisplayPage.aspx?CategoryID=19

  15. What’s the Yardstick: Green Building Credentials • Green Globes Building Rating System -1-4 globes Green Building Initiative www.greenglobes.com

  16. What’s the Yardstick: Green Building Credentials • Energy Star Qualified New Homes Environmental Protection Agency http://www.energystar.gov/index.cfm?c=new_homes.hm_index

  17. What’s the Yardstick: Green Building Credentials • NC HealthyBuilt Homes Program Western North Carolina Green Building Council www.healthybuilthomes.org http://www.wncgbc.org/healthybuilt/

  18. What’s the Yardstick: Green Building Credentials • Green Home Certification National Association of Home Builders http://www.nahbgreen.org/Certification/homecertification.aspx • National Green Building Standard (awaiting ANSI approval) http://www.nahbrc.org/technical/standards/greenbuilding.aspx

  19. No Greenwashing: Green Advertising • What are the limits on the green claims you can make? • Be truthful and be able to back up your claims

  20. No Greenwashing: Green Advertising • The Federal Trade Commission has a Guide For Environmental Claims http://www.ftc.gov/bcp/edu/pubs/consumer/general/gen02.shtm

  21. No Greenwashing: Green Advertising • 2008 FTC Workshop focusing on Green Building • http://www.ftc.gov/bcp/workshops/buildingandtextiles/index.shtml

  22. No Greenwashing: Green Advertising • FTC Guide: • Don’t overstate • Must be able to substantiate =reasonable basis at the time made -backed up by scientific evidence -e.g., don’t claim certification that you don’t yet have; be careful about health claims

  23. No Greenwashing: Green Advertising • FTC Guide: • Qualifications and Disclosures -clear, prominent and understandable • General Environmental Benefit Claims -deceptive, difficult to interpret, conveys wide range of meanings -be specific

  24. No Greenwashing: Green Advertising • FTC Guides: • Any credentials must be explained • Link to websites of credentialing organizations

  25. No Greenwashing: Green Advertising • FTC Guides: • Tips • Qualify benefits • Potential • General not specific • Don’t repeat manufacturers claims

  26. No Greenwashing: Green Advertising • What happens if your claims are false or deceptive? • Probably violates state consumer protection laws • Treble damages and attorneys fees • If consumers or competitors complain • FTC consent decree and/or fines • If damages are large enough • class action

  27. From Green to Red: Green Building Problems • What can go wrong? • Same types of construction claims that you face now, with new fact scenarios • Contract • Warranty • Professional standards of care • Consumer protection

  28. From Green to Red: Green Building Problems • New potential losses/damages • Lost incentives/credits • Lost reputation • Lower building value • Health claims

  29. From Green to Red: Green Building Problems • Owners who may be more likely to sue • Personal convictions • Higher cost of project • Unreasonable expectations

  30. From Green to Red: Green Building Problems • Architect, Builder & Engineer agree that building will be certified under a credentialing system. Developer and brokers market building certification. Once built, building does not achieve certification.

  31. From Green to Red: Green Building Problems • Is the promise of certification a warranty that means no e&o coverage for architects/engineers? • Even if no specific promise, if you sign documents required for certification does that negate e&o coverage? • Damages: will insurance cover? • Lost reputation • Decreased rent • Lost incentives/credits

  32. From Green to Red: Green Building Problems • Homeowner buys home based on claims of indoor air quality or increased energy efficiency. After moving in, family has increased health problems or energy bills are not as low as expected.

  33. From Green to Red: Green Building Problems • Green building consultants

  34. From Green to Red: Green Building Problems • Failure of new products/technologies • Don’t rely on manufacturer’s claims • Alert owner of risks

  35. From Green to Red: Green Building Problems • Builder or sub-contractor non-green product substitutions

  36. From Green to Red: The Green Building Problems • Architect/Engineerelevated standard of care? -i.e., expected to be competent in green building -Do aspirational statements by professional associations raise standards of care? -Professional accreditations

  37. From Green to Red: The Green Building Problems • Tips • Consequential damage waivers • Review your insurance • Clear communication among professionals and owners that is documented in contracts • Training & expertise • Experienced contractors

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