Schiff Hardin LLP February 03, 2010
Schiff Hardin Real Estate Alert

Learn more about the Real Estate Group at Schiff Hardin.

Attorneys In This Practice

James R. Balich
Robert I. Berger
Jean L. Bertrand
Matthew Brett
Nathan A. Engel
Todd R. Eskelsen
Christine C. Goldstein
Brett H. Greenberg
David A. Grossberg
Russel T. Hamilton
Graham R. Hone
Jean H. Hurricane
Janet M. Johnson
James M. Kane
Brian D. Kluever
Paul G. Mackey
Sean T. Maloney
David A. Mandel
Christine A. McGuinness
Ivan W. Moskowitz
K. William Neuman
Randolph M. Perkins
Ann K. Pikus
Tracy S. Plott
Marina Rabinovich
Felice Bressler Rose
Suma Sanakkayala
David S. Sattelberger
Natalie S. Starkman
Amy E. Sullivan
Alexander W. Suto
Patricia S. Ullman

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California Takes the Lead in Imposing Green Building Standards

All new buildings in California will soon be required to be constructed as green buildings.

On January 12, 2010, the California Building Standards Commission voted to adopt CALGREEN, the first comprehensive, statewide green building standards code in the country. The code's adoption is seen as an important step in California's legislative program of reducing greenhouse gas emissions by 25 percent by the year 2020. Effective as of January 1, 2011, CALGREEN will prescribe certain mandatory, minimum building standards, set forth a second tier of voluntary, aspirational standards, and allow cities and counties the flexibility to require compliance with even more stringent standards.

Among the mandatory standards, CALGREEN requires:

  • Percentage reductions in permissible indoor water use,
  • Separate water meters on nonresidential buildings for indoor and outdoor uses,
  • Diversion of construction waste from landfills,
  • Inspections of energy systems of nonresidential buildings over 10,000 square feet,
  • Moisture-sensing irrigation systems for landscape projects of a certain size, and
  • Use of construction materials with a minimum percentage of recycled content value.

Developers may choose to build to certain aspirational standards in order to qualify for a higher tier of CALGREEN compliance, possibly as an alternative to seeking a more costly private certification such as LEED. The existing infrastructure of state agencies and local officials now regulating development will also monitor compliance with and otherwise administer CALGREEN (theoretically without any major increase in local building permit and inspection fees).

CALGREEN's biggest skeptics thus far have been some of the very same organizations traditionally on the forefront of sustainable development. Some charge that the mandatory provisions do not go far enough. Others doubt whether state and local officials have the expertise to monitor compliance effectively and suggest that CALGREEN's tier system is confusing, although such criticisms may be motivated in part by the self-interest of the lucrative certification industry, which will now apparently have to compete with the CALGREEN model. Expect other states and countries to watch the California experience with interest as they decide whether to enact similar green building codes of their own.

A codified version of CALGREEN and specific guidance from the California Building Standards Commission have yet to be published. While the new code applies to all occupancy types, the requirements will not be uniform across all occupancy types. There are also questions as to whether a major rehab project will trigger CALGREEN regulation, how such CALGREEN regulations might affect a project which is underway but is being constructed in phases, and whether a developer of a project currently under construction could modify the project to satisfy the new requirements so as to obtain a CALGREEN-compliant designation.

Schiff Hardin's Real Estate Practice Group is available to assist you if you should have any questions as to the application of such CALGREEN requirements to any projects you might be considering developing or have under development.

ABOUT SCHIFF HARDIN LLP
Schiff Hardin's real estate practice covers all aspects of real estate. Our attorneys' experience includes a particular emphasis on real estate development, especially multi-use projects — combining residential, retail, parking and public-use areas. We have handled more multi-use projects than most firms in the United States and understand the variety of things that need to come together to complete a project — things that don't always come together easily in a large project. Our depth of experience enables us to advise our clients through the process of developing these projects in an efficient and cost-effective manner.

© 2010 Schiff Hardin LLP

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