tag:blogger.com,1999:blog-77286399528999797792024-02-08T08:25:37.505-05:00Green Building Law BriefGreen Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.comBlogger29125tag:blogger.com,1999:blog-7728639952899979779.post-28895719780816372732011-04-01T15:04:00.002-04:002011-04-01T15:04:58.723-04:00Whiteford,Taylor & Preston Receives the President's Award from USGBC Maryland<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><span style="color: #595959; font-size: 12px;"><span style="color: #17365d;"><img align="left" src="http://app7.publicaster.com/ImageLibrary/account2629/images/award.jpg" style="float: left; margin-bottom: 2px; margin-right: 5px;" /></span>On January 27, Whiteford, Taylor & Preston proudly accepted the President's Award from the USGBC-MD. WINTERGREEN, The Maryland Chapter of the U.S. Green Building Council's (USGBC) sixth annual awards celebration recognizing excellence and innovation in green building design, honored 16 buildings, seven companies and six individuals. The President's Award was established to recognize the valuable contributions volunteers are making in green building and encourage more people to serve. The USGBC Maryland created the President's Award as a way to thank and honor organizations that, by their demonstrated commitment to sustainability and by example, inspire others to share our mission of transforming the way buildings are designed, built and operated.</span></div>Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-76120493168368250022011-04-01T15:03:00.001-04:002011-04-01T15:03:35.005-04:00Maryland Legislature Poised to Extend Option of "Benefit" Status to LLCsMaryland limited liability companies that pride themselves on their commitment to environmental and social responsibility soon may be able to obtain legal recognition, separate from their less magnanimous competitors. If passed, Senate Bill 595 and its companion House Bill 1151 will allow willing limited liability companies to elect "Benefit" status--similar to the "Benefit" status already available to Maryland corporations.<br />
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Under the new law, a "Benefit LLC" would be a for-profit enterprise that nevertheless chooses to place a premium on creating a perceived positive impact on the environment and society. Although the managing members of a Benefit LLC would owe their fiduciary duties exclusively to the company (like the managers of any business), their obligation to act in furtherance of the company's environmental and social philosophies in addition to the company's financial interests (as opposed to solely the financial interests) means that what constitutes satisfactory performance of those fiduciary duties would be quite different from what is expected from the directors or managers of a traditional corporation or LLC. <br />
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The legal advantage to Benefit LLC status would be that such a company's managing members would enjoy a significant degree of insulation from liability, if a disgruntled member files a derivative action based on the company's decision to forgo maximum profitability in the name of environmental or social responsibility. This would provide the managing members with greater freedom in running the business (however, there is a compelling argument that, in one sense, the managing members of a Benefit LLC actually would have less freedom, as their ability to pursue profits would be tempered).<br />
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Although still little-known and even less understood, Benefit status has been available to willing corporations in Maryland since October, 2011. Vermont also allows corporations to elect a similar legal status. In a Benefit corporation, directors must consider a proposed decision's impact on the long-term financial well-being of the company, the environment, the community, the company's employees, and society in general. To lessen the subjectivity involved in deciding the proper balance of those considerations, the Benefit corporation law requires directors of a Benefit corporation to inform their decision-making by looking to independent third-party standards that assess best practices in corporate social and environmental performance. <br />
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It appears that the Benefit LLC law will be similar, if not identical, in that regard. LLCs willing to elect Benefit status were right to complain about not being included in the Benefit corporation law, when it went into effect in October. As it turns out, many of the corporations electing Benefit status are small businesses with one or two shareholders, unlikely to wind up embroiled in derivative litigation. For such a corporation, however, there is nevertheless a very real business advantage in being able to say that the company is vetted as a good corporate citizen. That is what many LLCs want to be able to say as well, and the reason they would like to see the Benefit LLC law passed.<br />
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If the Benefit LLC law is enacted, its practical effect for participating LLCs, many of which likely will be small businesses with one or two owner-operators, will be that those companies can now market themselves as environmentally and socially conscious to potential customers, suppliers, investors, or anyone else they may hope to do business with. Because a Benefit LLC's legal framework would require it to work for a positive environmental and societal impact, as measured by a third-party standard, others considering doing business with the company would know that the company's stated ethos is more than just puffery. That could be a significant business advantage. Indeed, consumers are placing more and more emphasis on environmentally sustainable products and services. Moreover, many larger corporations are starting to create positions for "chief sustainability officers," whose job is to improve the corporation's environmental performance; thus, companies with Benefit status might have a distinct advantage over competitors, when seeking to supply goods or services to those large corporations.<br />
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For many small businesses, incorporating simply is impracticable because of the tax consequences. Thus, they operate as LLCs. Currently, however, the business advantage of Benefit status is not available to LLCs. By enacting the Benefit LLC law, the Maryland General Assembly would promote environmental and social responsibility and encourage business growth in Maryland. Both goals are laudable.<br />
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--Peter SheehanGreen Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-16682376087494505422010-06-30T10:05:00.000-04:002010-06-30T10:05:03.884-04:00USGBC-Maryland's New Headquarters<a href="http://www.usgbcbalt.org/">The USGBC Maryland Chapter</a> will showcase its new Hunt Valley headquarters tomorrow, July 1, at 5:30 pm with a “See the Green Building Tour.” For more information on the event and to register, click <a href="http://www.eventbrite.com/event/746068511">here</a>. The new office is in <a href="http://www.merrittproperties.com/newsDetail.aspx?id=40&cat=2">Schilling Green</a>, Maryland’s first speculative LEED Platinum Core and Shell building. Schilling Green features a green roof and rooftop photovoltaic panels, among other green elements. Whiteford, Taylor & Preston’s <a href="http://www.wtplaw.com/attorney.cfm?id=3">Tom Barbuti, LEED AP</a> and <a href="http://www.wtplaw.com/attorney.cfm?id=211">Tami Daniel</a> represented the Maryland Chapter on a pro bono basis in negotiating the lease for the new space with the building’s owner, Merritt Properties, as well as a sponsorship agreement whereby Merritt Properties has become a major sponsor of USGBC-Maryland.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com2tag:blogger.com,1999:blog-7728639952899979779.post-63704192726583147322010-06-24T09:31:00.000-04:002010-06-24T09:31:29.033-04:00Green Building and Sustainability Newsletter: DOE Proposes New Standards for Federal Buildings; Baltimore County's Tax Credit for High Performance HomesEvery two weeks, Whiteford, Taylor & Preston’s <a href="http://www.wtplaw.com/practice.cfm?id=284">Green Building and Sustainability Industry Group</a> publishes <a href="http://www.wtplaw.com/newsletter.cfm?sp=newsletter&tp=cat&ID=13">an e-newsletter</a>, edited by <a href="http://www.wtplaw.com/attorney.cfm?id=209">Adam Baker, LEED AP BD+C</a>, covering sustainability issues that impact a wide array of industries, including Real Estate, Construction, Government Contracts, Manufacturing, and Intellectual Property. The latest edition can be found <a href="http://greenbuildinglawbrief.blogspot.com/p/green-building-and-sustainability.html">here</a>. It features an article by <a href="http://www.wtplaw.com/attorney.cfm?id=206">Martha Perkins</a> on proposed new standards from the Department of Energy for energy efficiency and sustainable design for the construction and major renovation of federal buildings; a piece by <a href="http://www.wtplaw.com/attorney.cfm?id=14">Jennifer Busse, LEED AP BD+C</a> on green residential property tax credits in Baltimore County, also briefly discussed in <a href="http://greenbuildinglawbrief.blogspot.com/2010/06/update-on-baltimore-countys-green.html">this recent Green Building Law Brief post</a>; and a recap of the USGBC-Maryland Chapter's 2010 Maryland General Assembly Session Green Legislation Wrap-Up Event, hosted by Whiteford, Taylor & Preston at our Baltimore office on June 9.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-39275507415321486552010-06-23T14:18:00.000-04:002010-06-23T14:18:36.337-04:00Update on Baltimore County's Green Residential Property Tax CreditThe Baltimore County Council has now passed a green residential property tax credit bill, <a href="http://resources.baltimorecountymd.gov/Documents/CountyCouncil/bills/b04310.pdf">No. 43-10</a>, that maintains the county's grant of a tax credit for residences attaining a LEED for Homes Silver or better rating. As noted in <a href="http://greenbuildinglawbrief.blogspot.com/2010/05/baltimore-county-may-replace-leed-based.html">an earlier Green Building Law Brief post</a>, the initial version of this bill did not include LEED standards in establishing eligibility. The version as passed adds to the existing law by granting tax credits based entirely on the home’s energy efficiency, as established using either the <a href="http://resnet.us/home-energy-ratings">Home Energy Rating System</a> (HERS) or the <a href="http://www.passivehouse.us/passiveHouse/PHIUSHome.html">Passive House</a> standards, as well as the credits based on LEED standards. Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-32523528337834305802010-06-23T13:06:00.003-04:002011-03-31T22:49:02.081-04:00Summer 2010 Construction Update Newsletter: Hybrid Public/Private Construction Projects; Sovereign Immunity Held by Maryland School BoardsWhiteford, Taylor & Preston's <a href="http://www.wtplaw.com/practice.cfm?id=4">Construction Industry Group</a> periodically publishes the <i><a href="http://www.wtplaw.com/newsletter.cfm?sp=newsletter&tp=cat&ID=8">Construction Update</a></i> newsletter, edited by <a href="http://www.linkedin.com/in/ldsparks">Lisa Sparks, LEED AP O+M</a>, which covers legal issues of note to the construction industry. The <a href="http://docs.google.com/fileview?id=0B0Jz7r0WiaFSZmUzZWNlNDQtZmI4NC00MWUyLTk0ZDMtN2Y1NTNiNDY3OThj&hl=en">Summer 2010 edition</a> is out now. It features an article by <a href="http://www.wtplaw.com/attorney.cfm?id=27">Bob Carney</a> and Lisa on the increased use of hybrid public/private construction projects, adapted from a paper the two authored earlier this year, <i>Is It Public or Not?</i>, which was presented by Bob at the <a href="http://www.abanet.org/forums/construction/featured_program/sanfran2010.pdf">2010 ABA Forum on the Construction Industry MidWinter Meeting</a>, held January 27-29, 2010 in San Francisco. The newsletter also includes a piece by <a href="http://www.avvo.com/attorneys/william-pearce-1557752.html">Will Pearce, LEED AP BD+C</a> on the Maryland Court of Special Appeals' recent decision in <i><a href="http://mdcourts.gov/opinions/cosa/2010/1924s08.pdf">Board of Education of Worcester Co. v. BEKA Industries</a></i>, in which the court addressed the sovereign immunity of Maryland’s county school boards to breach of contract actions and the application and enforceability of a no-damages-for-delay clause in a cosntruction contract. Most notably, the court held that in order for the waiver of sovereign immunity applicable to the school boards to be effective, the board must have appropriated funds available to satisfy the judgment. Since the newsletter went to print, the Maryland Court of Appeals, Maryland's highest court, <a href="http://www.courts.state.md.us/coappeals/grants/06_10grants.html">granted certiorari</a> and <a href="http://www.delmarvanow.com/article/20100615/NEWS01/6150379/Ocean-City-Elementary-School-lawsuit-winds-up-in-high-court">is expected to hear arguments in the appeal later this year</a>.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-25840527675141384802010-06-10T10:36:00.000-04:002010-06-10T10:36:48.341-04:00Green Building and Sustainability Newsletter: The Growth Goals of Baltimore County's Master Plan 2020 - Are PUDs the Answer?Baltimore County's Master Plan 2020 will focus on sustainable development more than any previous plan developed by the county, promoting higher density, mixed use development types and walkable communities. The new approach to development is expected to result in significant decreases in stormwater runoff and vehicle miles traveled. In the <a href="https://app.e2ma.net/app/view:CampaignPublic/id:33095.8351754474/rid:e174900de0a327ce5eff619144e39bd1">latest edition of the Green Building and Sustainability Newsletter</a>, <a href="http://www.wtplaw.com/attorney.cfm?id=14">Jennifer Busse</a> looks at what's anticipated to be in the new plan, still in the process of formulation by the county, and how Planned Unit Developments ("PUD's") may play a substantial role in carrying out the goals of the new master plan.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-67233960558582538202010-06-08T21:50:00.001-04:002011-03-31T22:39:33.268-04:00The New Broadneck High School Environmental Literacy Signature Program<a href="http://www.broadneck.org/">Broadneck High School</a> (Annapolis, Maryland) will launch its new Environmental Literacy Signature Program tomorrow, June 9, with a kickoff event at the school at 5 p.m. Anne Arundel County Public Schools' <a href="http://www.broadneck.org/SignatureFAQ.pdf">Signature Schools</a> program calls for each of the county's high schools to focus on a specific theme across its curriculum. Broadneck's Environmental Literacy Signature Program is the second such program to launch; the first was <a href="http://www.meadesenior.org/">Meade High School</a>'s Homeland Security Signature Program. Whiteford, Taylor & Preston's <a href="http://www.avvo.com/attorneys/william-pearce-1557752.html">Will Pearce</a> was among the citizens who assisted in the introduction of the program to the school system's Signature Programs committee, presenting on the importance of green procurement to the county's economy. Click <a href="http://www.aacps.org/html/press/postrelease/files/files1030/BroadneckSignatureKickoff6-8-10.pdf">here</a> for the press release from the school system announcing the program kickoff. The community is invited to the event; click <a href="http://www.broadneck.org/SignatureInvite.pdf">here</a> for more information.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-2929087665510125482010-06-04T15:55:00.004-04:002011-03-31T22:40:06.391-04:00The Newly Released AIA A312-2010 Performance and Payment Bond FormsGreen Building contractors and subcontractors should be aware that The American Institute of Architects recently released updated versions of its widely used A312 Performance and Payment Bonds and A310 Bid Bond. Click <a href="http://www.aia.org/aiaucmp/groups/aia/documents/pdf/aiab083075.pdf">here</a> for the AIA’s Commentary on the change, featuring the text of the new bond forms and for each, a comparison of the new version with the previous version (the AIA A312-1984 for the Performance and Payment Bonds, the AIA A310-1970 for the Bid Bond). <br />
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Probably the most notable feature of the new A312 is the addition of language that would avoid the effect of <i><a href="http://mdcourts.gov/opinions/coa/2005/150a04.pdf">National Union Fire Insurance Co. v. David A. Bramble, Inc.</a></i> Under the A312-1984 form, the surety has 45 days from receiving a payment bond claimant’s notice of bond claim to provide the claimant with a response “stating the amounts that are undisputed and the basis for challenging any amounts that are disputed.” In the <i>Bramble</i> case, decided in 2005, the Maryland Court of Appeals held that where the surety fails to provide this response under the A312-1984 payment bond form, it waives its defenses to the claimant’s payment bond claim, regardless of whether the claim is valid or the amounts sought are legitimately owed to the claimant by the bond principal. Few courts that have addressed the issue in the years since have agreed with the Bramble court’s holding, but the issue has not been definitively addressed in most jurisdictions. <br />
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In opposition to the adoption of the <i>Bramble</i> holding by courts in other jurisdictions, sureties have argued, among other things, that the penalty of a waiver of all defenses is too steep, that construing a surety’s silence as a waiver contravenes longstanding principles of contract interpretation, and that the 45-day period is too short to conduct an investigation on a complex construction project, especially given that the claimant is required to give little information in order to provide notice of its claim. <br />
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The surety industry’s concerns have resulted in changes in the new form. Under the A312-2010 form, the surety has 60 days to respond to the claimant, and for those subcontractors without a direct contract with the bond principal, this period starts to run only when the claimant provides the surety with a written statement similar to that required under public works bonds. <br />
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The most significant change is an explicit rejection, in Section 7.3, of any waiver of surety’s defenses for failure to respond. The new form provides that the claimant is not entitled to such a waiver if the surety fails to respond, but can recover attorney’s fees incurred in seeking amounts found to be due and owing to the claimant. The American Subcontractors’ Association <a href="http://northcarolinaconstructionnews.blogspot.com/2010/05/revised-aia-form-removes-sureties.html">has criticized this new provision</a>, calling it “unfathomable” and arguing that it is unfair to bond claimants, who in some jurisdictions can lose entirely their rights to payment under a bond if they fail to comply strictly with its notice provisions, including claim submission deadlines. <br />
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It remains to be seen how widely used the A312-2010 form will be in both the short and long term. For years, the A312-1984 form has been relatively common in the industry. Owners and contractors, who generally mandate specific bond forms in their construction contracts with contractors and downstream subcontractors, will not be required to use the new form in place of the previous version, so the A312-1984 may well continue to see significant use in the coming years. Even today, some project owners still use the old AIA A311 bond forms, which were long ago replaced by the AIA A312-1984. <br />
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It’s worth noting that sureties, obligees, and bond principals can amend the bond language, so even where an A312-1984 form is used, it may include additional language similar to that in the new form, expressly disclaiming any intent to waive defenses from the surety’s failure to respond to a notice of claim. Such language has been added to the A312-1984 form for many projects since the <i>Bramble</i> decision came down; in 2008, the AIA even came out with its own such amendment to the A312-1984 to deal with the waiver issue. But not all users of the AIA A312-1984 necessarily included this new amendment in the A312 payment bonds mandated for their projects. So all parties have to pay close attention to the specific payment bond issued for their specific project in submitting and responding to bond claims. As they say in the industry: <a href="http://www.google.com/#num=50&hl=en&q=rtfb+%22payment+bond%22&aq=f&aqi=&aql=&oq=&gs_rfai=&fp=4bf11b3472c963b9">RTFB</a>.<br />
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-- <a href="http://www.avvo.com/attorneys/william-pearce-1557752.html">Will Pearce, LEED AP BD+C</a>Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-29102920192581865432010-05-28T23:33:00.000-04:002010-05-28T23:33:48.488-04:00Green Building Video RoundupWe're not going to delve into anything deeply substantive until after the holiday weekend. Check out these video shorts on Green Building topics:<br />
<ul><li><a href="http://www.baldwinhomes.net/">Baldwin Homes'</a> new Preserve at Severn Run community features an innovative Coastal Outfall System for stormwater management, designed to create its own ecosystem in a few years, so it might not even be perceptible as a stormwater management system. Click <a href="http://www.facebook.com/video/video.php?v=1250645153102&ref=nf">here</a> for a video presentation on the system. </li>
<li>Trauner Consulting's <a href="http://www.traunerconsulting.com/constructionnetcast/index.php">Construction Netcast</a> site features netcasts on a number of construction topics. Click <a href="http://www.traunerconsulting.com/constructionnetcast/index.php?option=com_content&task=view&id=25&Itemid=1">here</a> to see Scott Lowe discuss the use of photographs to document issues on the jobsite as they occur.</li>
<li>Energy Star's <a href="http://yosemite.epa.gov/opa/admpress.nsf/d0cf6618525a9efb85257359003fb69d/6723b7f2facee90c85257712005a3969!OpenDocument">National Building Competition</a> is a competition among 14 commercial and institutional buildings nationwide to see who can eliminate the most energy waste. Two area buildings are among the contestants: the <a href="http://www.energystar.gov/index.cfm?fuseaction=buildingcontest.contestantDetails&cid=1525_WilsonBlvd">1525 Wilson Boulevard</a> office building in Arlington, Virginia and the <a href="http://www.energystar.gov/index.cfm?fuseaction=buildingcontest.contestantDetails&cid=SearsGlenBurnie">Sears in the Marley Station Mall</a> in Glen Burnie, Maryland. Energy Star is styling the contest as a reality show, "Biggest Loser"-esque event. In that spirit, click <a href="http://www.energystar.gov/index.cfm?fuseaction=buildingcontest.index&VIDNUM=1">here</a> for a pep talk to the contestants from <a href="http://www.biggestloserclub.com/articles/Bob_Harper.asp?sname=DirectLoad">fitness expert Bob Harper</a>.</li>
</ul>Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com1tag:blogger.com,1999:blog-7728639952899979779.post-5992430447151320982010-05-26T16:03:00.000-04:002010-05-26T16:03:58.408-04:00The International Green Construction Code, Baltimore County Green Legislation, and the New Montgomery County Carbon Tax: The Whiteford, Taylor & Preston Green Building and Sustainability NewsletterIn the latest edition of the Whiteford, Taylor & Preston Green Building and Sustainability Newsletter, <a href="http://www.wtplaw.com/attorney.cfm?id=222">Jennifer Pollard</a> analyzes the new International Green Construction Code, <a href="http://www.wtplaw.com/attorney.cfm?id=14">Jennifer Busse</a> takes a look at recent Baltimore County green legislation, and <a href="http://www.wtplaw.com/attorney.cfm?id=209">Adam Baker</a> discusses the carbon tax recently passed by Montgomery County. Click <a href="https://app.e2ma.net/app/view:CampaignPublic/id:33095.8309164527/rid:c72e719c58e3000c87bcb5e0a63f6373">here</a> to check it out. Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-2978708395293339082010-05-21T12:21:00.000-04:002010-05-21T12:21:31.209-04:00Update on Green Building-Related Legislation Passed by the Maryland General AssemblyGreen Building Law Brief earlier summarized newly passed bills relating to Green Building and Sustainability issues <a href="http://greenbuildinglawbrief.blogspot.com/2010/04/maryland-general-assembly-2010-session.html">here</a> and <a href="http://greenbuildinglawbrief.blogspot.com/2010/04/sustainable-communities-act-of-2010.html">here</a>. As of yesterday, all of the bills discussed have been signed into law by Governor O'Malley. Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-6633696331886473442010-05-20T22:50:00.003-04:002011-03-31T22:40:46.158-04:00Baltimore County May Replace LEED-Based Residential Property Tax CreditA <a href="http://resources.baltimorecountymd.gov/Documents/CountyCouncil/bills/b04310.pdf">recently introduced bill</a> before the Baltimore County Council, Bill No. 43-10, would repeal the county's existing residential property tax credit for compliance with LEED for Homes, replacing it with a similar credit based entirely on the home’s energy efficiency. <br />
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Under the current provision, discussed by <a href="http://www.wtplaw.com/attorney.cfm?id=149">Dino La Fiandra</a> last year in <a href="http://www.wtplaw.com/public_document.cfm?id=246">an article for the Green Building and Sustainability Newsletter</a>, a residential property owner is eligible for a property tax credit for 40% of the tax assessed for a property attaining LEED for Homes Silver status, 60% for being LEED for Homes Gold-compliant, and 100% for LEED for Homes Platinum level compliance. The tax credit runs for three years after the taxpayer files for it. <br />
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The LEED for Homes rating system is based on the award of points for a home’s performance across eight categories: Innovation and Design Process; Location & Linkages (measuring the sustainability of the placement of the home within a community); Sustainable Sites; Water Efficiency; Energy & Atmosphere; Materials & Resources; Indoor Environmental Quality; and Awareness & Education (measuring the education of the home’s occupants about the operation and maintenance of green systems in the home). <br />
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In contrast, the new approach would focus solely on energy use. The amount of the new tax credit would be a percentage of the assessed tax equal to the percentage of increased energy efficiency – i.e., a home that achieves a 55% increase in energy efficiency would be eligible for a tax credit of 55% of the tax assessed on the property. A property owner must attain an energy efficiency increase of at least 40% to qualify for the credit.<br />
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How would increased energy efficiency measured? For existing structures undergoing renovation, the increase is to be calculated by comparing the actual energy use after renovation to a baseline of such use immediately prior to the renovation. The calculation for new construction is a little more complex. The new bill would require energy modeling at the design phase to compute the anticipated energy use of the new residence, comparing that result to a baseline of the existing requirements of the county code. <br />
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This potential move away from reliance on LEED for Homes to a focus on energy use follows criticism of LEED standards as failing to result in reduced energy use in LEED-compliant buildings. <i>The New York Times</i> <a href="http://www.nytimes.com/2009/08/31/science/earth/31leed.html?_r=1&pagewanted=all">examined this issue</a> last summer, noting that a USGBC study had found that more than half of the LEED-certified building that had obtained certification prior to 2006 did not qualify for an Energy Star label, and many were the bottom half, in terms of energy use, of comparable buildings nationwide.<br />
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The new tax credit, like the current one, would run for three years from application, unless the residence attains carbon-neutral status, in which case the credit would run for five years. The county would be permitted to revoke the credit if the building is altered so that it no longer complies with the bill’s energy use requirements. The new bill would not permit revocation simply because it turned out that a new residence used more energy than predicted by design phase energy modeling. Additionally, it would not undo tax credits already earned by residential property owners under the existing LEED-based approach for future tax years.<br />
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The council will discuss and hear testimony on the bill at a June 1 afternoon work session and is currently scheduled to vote on it on June 7. <br />
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-- <a href="http://www.avvo.com/attorneys/william-pearce-1557752.html">Will Pearce, LEED AP BD+C</a>Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com2tag:blogger.com,1999:blog-7728639952899979779.post-69746036301596221642010-05-17T11:10:00.001-04:002010-05-17T11:13:47.468-04:00Upcoming EventsScroll down and check out our Events Calendar, on the lower right hand side of this page, listing a wide array of networking opportunities, educational seminars, and other events of interest to those in the business of green building and sustainability.<br />
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We'd like to highlight some events from the calendar of particular relevance taking place this month and next -- those that Whiteford, Taylor & Preston is sponsoring, or at which Whiteford, Taylor & Preston attorneys will be speaking: <br />
<ul><li><a href="http://www.wtplaw.com/attorney.cfm?id=204">Alex Koff</a> will be a member of the Vietnam Environmental Business Mission delegation of the <a href="http://www.mdaep.com/">Maryland-Asia Environmental Partnership</a>. The delegation's trip, which will take place from May 22-May 30, will include sessions of the <a href="http://www.vietnamenvironmentalforum.com/">Vietnam Environmental Forum</a>, a Conference on Environmental Solutions Backed by American Technology, on May 25 in Hanoi and May 27 in Ho Chi Minh City. Alex is the US Conference Program Chair.</li>
<li><a href="http://www.wtplaw.com/attorney.cfm?id=209">Adam Baker, LEED AP BD+C</a> will speak on the status of green building policies, regulations and legislation in Maryland on May 26 at the USGBC National Capital Region chapter's Public Policy Forum, which will be held at the offices of Holland & Knight, 2099 Pennsylvania Ave., NW, Suite 100, Washington, DC. Kyrus Freeman of Holland & Knight and Russell Randle of Patton Boggs will also speak, addressing the status of green building laws in the District of Columbia and Virginia, respectively. Chris Cheatham of Crowell & Moring will moderate. For more information and to register, click <a href="http://www.usgbcncr.org/_events/details/231">here</a>.</li>
<li>On June 9, Whiteford, Taylor & Preston will host the USGBC Maryland Chapter's Wrap Up of the 2010 Maryland General Assembly. This event, to be held at WTP's <a href="http://www.wtplaw.com/office.cfm?id=9">Baltimore Office</a>, will cover the new green building laws passed in the just concluded General Asembly session. For more information and to register, click <a href="http://www.eventbrite.com/event/679868505">here</a>.</li>
<li><a href="http://www.wtplaw.com/attorney.cfm?id=206">Martha L. Perkins</a> will be a program speaker on “Novel Surety Issues Presented by Green Construction” at the Surety & Fidelity Claims Institute Annual Meeting in Williamsburg, Virginia, on June 24, 2010.</li>
</ul>If you have any events you'd like to have listed on our Events Calendar, please e-mail us at greenbuildinglawbrief@gmail.com.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-47200170744854785602010-05-14T17:36:00.001-04:002011-03-31T22:42:07.271-04:00Maryland's New Benefit Corporations LawIn April, Maryland became the first state in the nation to enact <a href="http://mlis.state.md.us/2010rs/chapters_noln/Ch_98_hb1009T.pdf">legislation permitting the creation of Benefit Corporations</a>. Such business entities are often referred to as “B Corporations,” a term that is a trademark of <a href="http://www.bcorporation.net/">B Lab</a>, a non-profit that has worked to popularize the concept and that certifies such businesses. This category of business entity permits a corporation to identify goals other than profit maximization, generally objectives relating to social and environmental performance. <br />
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Traditionally, the duty of corporate directors and officers is to maximize the monetary return on shareholders’ investment. Benefit Corporations are for-profit enterprises, but they also identify in their corporate documents social progress objectives. The concept grew out of a concern on the part of socially conscious business owners that tapping capital markets can serve to undermine the social mission of their businesses, as the new investors may grow weary of the social mission and simply seek profit maximization. <br />
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<a name='more'></a>Under Maryland’s approach, Benefit Corporations must have the purpose of creating a “General Public Benefit”, defined as “a material, positive impact on society and the environment, as measured by a third-party standard, through activities that promote a combination of Specific Public Benefits.” The new law defines this “third party standard” by which a General Public Benefit is to be measured as a standard for defining, reporting, and assessing best practices in environmental and social practices, created by a party independent of the Benefit Corporation and transparent in its criteria for assessment. B Lab has <a href="http://www.bcorporation.net/become/BRS">one such standard</a> up and running and <a href="http://www.bcorporation.net/community/search">has certified over 200 businesses</a>.<br />
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The term “Specific Public Benefit” includes the following:<br />
<blockquote>(1) Providing individuals or communities with beneficial products or services;</blockquote><blockquote>(2) Promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business;</blockquote><blockquote>(3) Preserving the environment;</blockquote><blockquote>(4) Improving human health;</blockquote><blockquote>(5) Promoting the arts, sciences, or advancement of knowledge;</blockquote><blockquote>(6) Increasing the flow of capital to entities with a public benefit purpose; or</blockquote><blockquote>(7) The accomplishment of any other particular benefit for society or the environment.</blockquote>All Benefit Corporations created under Maryland law must have the purpose of creating a General Public Benefit. A Benefit Corporation has the option of specifying in its charter one or more Specific Public Benefits as among its purposes, in addition to (rather than in place of) its purpose of creating a General Public Benefit.<br />
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The Directors of a Benefit Corporation must consider the effects of their actions not only the interests of the shareholders, but also on other stakeholders, specified by statute: <br />
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<blockquote>(1) In determining what the director reasonably believes to be in the best interests of the benefit corporation, [the director] shall consider the effects of any action or decision not to act on:</blockquote><blockquote><blockquote><blockquote>(i) The stockholders of the benefit corporation;</blockquote><blockquote>(ii) The employees and workforce of the benefit corporation and the subsidiaries and suppliers of the benefit corporation;</blockquote><blockquote>(iii) The interests of customers as beneficiaries of the general or specific public benefit purposes of the benefit corporation;</blockquote></blockquote><blockquote><blockquote>(iv) Community and societal considerations, including those of any community in which offices or facilities of the benefit corporation or the subsidiaries or suppliers of the benefit corporation are located; and</blockquote><blockquote>(v) The local and global environment; and</blockquote></blockquote></blockquote><blockquote>(2) May consider any other pertinent factors or the interests of any other group that the director determines are appropriate to consider.</blockquote>Non-shareholder stakeholders, however, lack the standing to sue directors under the new law. Only shareholders are able to vindicate any failure of the directors to consider the effects of a given action on the other stakeholders. <br />
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The bill incorporates Maryland’s statutory “business judgment” rule, under which board members and officers are generally not liable for actions they take in the course of their duties in seeking to achieve the goals of the corporation, unless those acts constitute fraud, bad faith, waste of corporate assets, or culpable negligence. <br />
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Benefit Corporations, of course, have the twin goals of achieving profits and creating Public Benefits. Completely ignoring one of these goals would in all likelihood constitute a breach of duty on the part of the director. But Maryland courts are unlikely to intrude upon a director’s business judgment in choosing one alternative over another where both could arguably lead to the achievement of a Public Benefit.<br />
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All Benefit Corporations must make clear reference to the fact that they have elected to be Benefit Corporations at the head of their charter documents and on each outstanding stock certificate. Currently extant corporations that wish to convert to become Benefit Corporations may do so by amending their charters under the general procedure that governs charter amendments for Maryland corporations. <br />
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The new legislation requires that Benefit Corporations prepare an annual report that 1) describes the ways in which it pursued a General Public Benefit and, if applicable, the Specific Public Benefits listed as in its purpose, and 2) includes an assessment of its societal and environmental performance under a third party standard. The third party standard should be consistent from year to year, so that a Benefit Corporation’s progress can be consistently judged; if the entity changes such standard, it must explain why in its annual report. The annual report must be delivered to all shareholders and posted on the Benefit Corporation’s website.<br />
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-- <a href="http://www.avvo.com/attorneys/william-pearce-1557752.html">Will Pearce, LEED AP BD+C</a>Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com4tag:blogger.com,1999:blog-7728639952899979779.post-31279810929463633312010-05-13T10:42:00.001-04:002011-03-31T22:42:47.680-04:00Green Building and Sustainability Newsletter Review of 2010 Green Building-Related Maryland LegislationThe <a href="https://app.e2ma.net/app/view:CampaignPublic/id:33095.8265781043/rid:1699713b1a2b9f3991fb45174a1f16bf">latest edition</a> of the <a href="http://www.wtplaw.com/newsletter.cfm?sp=newsletter&tp=cat&ID=13">Green Building and Sustainability Newsletter</a> features a summary of the Green Building-related legislation passed by the Maryland General Assembly during its 2010 session, which closed in April. The review, written by <a href="http://www.avvo.com/attorneys/william-pearce-1557752.html">Will Pearce</a> and <a href="http://www.wtplaw.com/attorney.cfm?id=209">Adam Baker</a>, expands on <a href="http://greenbuildinglawbrief.blogspot.com/2010/04/maryland-general-assembly-2010-session.html">earlier</a> <a href="http://greenbuildinglawbrief.blogspot.com/2010/04/sustainable-communities-act-of-2010.html">blog posts</a> on Green Building Law Brief on the session's bills and contains summaries of bills not previously discussed here, including bills on compact fluorescent light bulb recycling and renewable energy mandates.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-82446637439620019142010-05-10T22:37:00.005-04:002011-03-31T22:43:21.737-04:00The New Towson City Center ProjectThe Indoor Environmental Quality (IEQ) Credits for LEED certification are the major reason why LEED-certified buildings are <a href="http://www.triplepundit.com/2009/10/does-your-building-need-a-sick-day/">believed to lead to greater employee health, productivity, and morale</a>. IEQ credits can be obtained for features such as increased ventilation, reduction in the use of volatile organic compounds, and facilitation of greater occupant control of heating and cooling systems. <br />
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Employee health problems became a significant problem for commercial facilities in late twentieth century, as occupants of <a href="http://www.epa.gov/iedweb00/pubs/sbs.html">"sick buildings"</a> came down with an array of symptoms, including headache; eye, nose, or throat irritation; dry cough; dry or itchy skin; dizziness and nausea; difficulty in concentrating; fatigue; and sensitivity to odors. These conditions were attributed to poor ventilation systems and biological and chemical contaminants present in carpets, paints, and mechanical equipment. Buildings where such features were believed to have led to the aforementioned sysmptoms were labeled as "sick buildings.”<br />
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One Investment Place, in Towson, was one such office building. Its tenants, mainly state and local governments, moved out in 2001 and 2002, believing that the facility had led to employee health issues. Such was never proven, but once the building was labeled as “sick”, it had a difficult time attracting new tenants. Despite an enviable location near the corner of York and Delaney, it has sat empty since 2002. <br />
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Now, its new owner <a href="http://baltimore.bizjournals.com/baltimore/stories/2010/05/03/daily29.html">proposes to completely remake it</a>, stripping the building down to its steel structure and rebuilding its facade and building systems to erect a largely new building it plans to name <a href="http://www.baltimorecountymd.gov/News/releases/0507towson.html">"Towson City Center"</a>, leased to a mix of retail and commercial office tenants. <br />
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The new Towson City Center project will advance sustainability goals in a couple of ways. First, its owner plans to obtain a LEED Silver or Gold Certification, which would require that it attain at least one IEQ credit. In any event, new building systems should be environmentally superior to the old ones, whether they caused sick building syndrome in its occupants or not. Additionally, any new well-occupied commercial space in downtown Towson will enhance its status as a dense, walkable community.<br />
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-- <a href="http://www.avvo.com/attorneys/william-pearce-1557752.html">Will Pearce, LEED AP BD+C</a>Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-61820312708751038422010-05-06T23:05:00.000-04:002010-05-06T23:05:30.266-04:00Maryland's New "Right to Dry" LawTwo weeks back, in <a href="http://greenbuildinglawbrief.blogspot.com/2010/04/maryland-general-assembly-2010-session.html">this post</a>, we noted the General Assembly's passage of SB 224, which bans prohibitions by homeowner and condominium associations on the use of clotheslines to dry laundry. Governor O'Malley signed the bill into law on Tuesday, May 4. WTP attorneys <a href="http://www.wtplaw.com/attorney.cfm?id=206">Martha Perkins</a> and <a href="http://www.wtplaw.com/attorney.cfm?id=115">Joe Douglass</a> today released an analysis of the new law for HOA's and condo associations; click <a href="http://www.wtplaw.com/publication.cfm?sp=&id=312">here</a> to check it out.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com3tag:blogger.com,1999:blog-7728639952899979779.post-70004645712948243482010-05-05T11:43:00.007-04:002011-03-31T22:43:55.755-04:00LEED in Litigation 2010To date, there has been little reported litigation relating to green building certification issues. Recent filings in two cases, however, give us a taste of the green building issues that may be litigated in the coming months.<br />
<ul><li><b>Failure to obtain certification.</b> A series of lawsuits relating to sales of newly constructed condominium units in New York City have raised this issue. The developer of a condominium project in West Chelsea terminated sales contracts into which it had entered with several prospective purchasers of condominium units, citing the failure of the purchasers to close on the units. In so terminating the sales contracts, the developer kept the substantial down payments made by the purchasers. The purchasers have responded by suing to get the down payments back and for the sales contracts to be rescinded. Among the purchasers' arguments is that the failure to close is excused by the developer's failure to keep its end of the bargain in making material changes to the project, including an alleged failure to obtain the promised LEED certification touted by the developer in marketing the units. LEED certification is just one small part of the significant problems between the parties (like many condominium projects of the past few years, this one apparently had be substantially reworked), but the inability to meet promised standards may be important evidence of the materially changed nature of the project. One of these Complaints, filed last month in <i>Barber v. West Chelsea Development Partners LLC</i>, Index No. 16104615/10 in the Superior Court for New York County, can be found <a href="http://docs.google.com/fileview?id=0B0Jz7r0WiaFSMWZiNTA5MjItOTYwMS00ZjMwLTg3N2ItNWViNjcwNmEyNTE3&hl=en">here</a>; the LEED-related allegations are on pages 19 and 20. </li>
<li><b>Cost of meeting LEED or equivalent standards as potential damages. </b> More local governments are requiring LEED or equivalent compliance for private projects. As these new mandates come online, they are often pegged to filing of permit applications. Those projects for which the process is already underway when the new requirements become effective do not have to meet LEED or equivalent standards, but those not yet started are subject to such standards. Delays in financing or closing, then, could result the incursion of increased costs resulting from LEED compliance. Such increased costs were cited by a jilted seller of land in <i>JLB Realty, LLC v. Capital Development, LLC</i>, Case No. 1:09-cv-00632-BEL in the United States District Court for the District of Maryland. After the prospective purchaser backed out of the sale of land to be developed for a relative large residential project in the Washington Hill neighborhood of Baltimore, the seller kept the earnest money paid by the prospective purchaser. The prospective purchaser then sued to get the earnest money back. In defending against this claim, the seller stated in a court filing (click <a href="http://docs.google.com/fileview?id=0B0Jz7r0WiaFSZGMxMTcyNmQtYTRjMC00YWFjLWFkODktYTEzMDAxNjg3NWE2&hl=en">here</a>; the LEED-related allegations are at pages 4 and 5) that one of the reasons for requiring a substantial deposit of earnest money was the potential increased cost of meeting LEED or equivalent standards. New private construction in Baltimore is under such a mandate as of July 1, 2009, and the seller suggested that the cost of LEED or equivalent compliance could be as much as $4 million. Green building issues were not central to this case, however, and Judge Benson Legg did not address them in <a href="http://docs.google.com/fileview?id=0B0Jz7r0WiaFSZGZhMDU1MzktMmVmOC00MjJkLTlhNjQtM2EzZTE4YTNlMWUy&hl=en">deciding</a> earlier this year on summary judgment in favor of the prospective purchaser on the grounds that it had properly exercised a termination right under the terms of the sales contract; the case is on appeal to the Fourth Circuit. Still, given the potential for cost increases resulting from new mandates of compliance with LEED or equivalent standards, such increased cost may become one component of damages where one party is alleged to have delayed the development of a parcel of land by its actions or failure to act. </li>
</ul>-- <a href="http://www.avvo.com/attorneys/william-pearce-1557752.html">Will Pearce, LEED AP BD+C</a>Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-64010964764833082942010-04-29T22:28:00.000-04:002010-04-29T22:28:07.357-04:00The Sustainable Communities Act of 2010<a href="http://mlis.state.md.us/2010rs/bills/hb/hb0475t.pdf">HB 475</a>, The Sustainable Communities Act of 2010, passed by the General Assembly shortly before the 2010 session ended earlier this month, replaces and expands the former Maryland Heritage Structure Rehabilitation Tax Credit, offering income tax credits to further the related goals of encouraging the renovation of historic buildings and driving development to areas that are already relatively high density. In addition to providing tax credits, the legislation is intended to be a means of channeling state and federal aid to preferred areas. The bill favors construction in “Sustainable Communities.” <br />
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The first requirement to qualify as a Sustainable Community is that the community be in a Priority Funding Area. Under Maryland’s smart growth policy, Priority Funding Areas are those areas that Maryland state and local governments have designated for encouragement and support of economic development and new growth. Such areas include the entire area inside the Washington and Baltimore Beltways and urban and dense suburban locations throughout the state; for a map, click <a href="http://www.dnr.state.md.us/education/growfromhere/Lesson15/MDP/PFAMAP.HTML">here</a>. The second requirement is that the community must be within an area of <a href="http://www.mdot-realestate.org/tod.asp">Transit-Oriented Development</a>, in a <a href="http://www.choosemaryland.org/businessresources/Pages/BRACRevitalization.aspx">BRAC Revitalization and Incentive Zone</a> (“BRAC Zone” for short), or otherwise determined to be eligible for reinvestment by the <a href="http://www.msa.md.gov/msa/mdmanual/08conoff/cabinet/html/smart.html">Smart Growth Subcabinet</a>. <br />
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There is $10 million for fiscal 2011 for tax credits under this bill. Credits are to be awarded by a competitive ranking system among the applicants. Governor O’Malley has not yet signed this bill, but its passage was among the Administration’s legislative goals for the 2010 session, so it seems likely he will sign it in the next few weeks.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com1tag:blogger.com,1999:blog-7728639952899979779.post-79052836034765508892010-04-28T15:21:00.001-04:002011-03-31T22:44:36.192-04:00The Green Premium for New School Construction<a href="http://www.avvo.com/attorneys/william-pearce-1557752.html">Will Pearce</a> authored an article on the green premium for new school construction for the <a href="https://app.e2ma.net/app/view:CampaignPublic/id:33095.8220475723/rid:a2a4d9f528d8283737b5eac05bc4ebc6">latest edition</a> of the Whiteford, Taylor & Preston Green Building and Sustainability Newsletter. The phrase "green premium" refers to the additional construction cost associated with complying with green building standards. All new public school construction in Maryland will have to comply with the <a href="http://mlis.state.md.us/2008rs/bills/sb/sb0208t.pdf">High Performance Buildings Act of 2008</a>; the State is picking up half the green premium until 2014, after which it will be the full responsibility of the county school boards. Click <a href="http://www.wtplaw.com/publication.cfm?sp=&id=311">here</a> to read the article.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-79314284691680757382010-04-23T00:28:00.001-04:002010-05-27T22:28:25.290-04:00Earth Day: Looking ForwardAs Earth Day comes to a close, let's take a quick look at what we might see on Earth Days to come:<br />
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<strong>Earth Day Future (near term)</strong> -- Earlier this week, we looked at <a href="http://greenbuildinglawbrief.blogspot.com/2010/04/maryland-general-assembly-2010-session.html">green building-related bills</a> that passed the Maryland General Assembly. One that didn't may well get passed by next Earth Day: <a href="http://mlis.state.md.us/2010rs/bills/sb/sb0479t.pdf">SB 479</a>, a bill that would have permitted the use of Green Globes to attain sufficient performance under the High Performance Buildings Act, failed to get a floor vote in the House after passing the Senate 47-0. Federal agencies, <a href="http://www.greenbiz.com/news/2010/01/12/15-veterans-affairs-medical-centers-attain-green-globes-certification">including the Department of Veterans Affairs</a>, are already using Green Globes certification to meet their green building goals, as an alternative to LEED.<br />
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<strong>Earth Day Future (long term)</strong> -- Under the <a href="http://energy.senate.gov/public/_files/RL342941.pdf">Energy Independence and Security Act of 2007</a>, fossil fuel use by newly constructed federal buildings will have to be completely eliminated by 2030. <a href="http://www.federaltimes.com/article/20100418/FACILITIES02/4180308/1001">Two new cutting-edge federal buildings</a> coming on line this year -- a NASA facility in the Bay Area dubbed "<a href="http://www.nasa.gov/centers/ames/greenspace/sustainability-base.html">Sustainability Base</a>" and a Department of Energy <a href="http://www.nrel.gov/sustainable_nrel/pdfs/campus_of_the_future.pdf">building</a> outside Denver -- provide us with a glimpse of how federal agencies plan to reach this goal. Both intend to achieve net-zero energy usage and attain LEED Platinum certification.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-59982121364231632632010-04-20T15:48:00.005-04:002011-03-31T22:45:20.888-04:00Maryland General Assembly 2010 Session: A Summary of Green Building-Related LegislationThe Maryland General Assembly’s 2010 session has come to a close, with the General Assembly having passed a number of bills related to green building. We’ll be taking a look at <a href="http://mlis.state.md.us/2010rs/bills/hb/hb0475t.pdf">HB 475</a>, titled “Smart Green and Growing: The Sustainable Communities Act of 2010” and passed just before the session ended, later this week [Update: our summary of HB 475 can be found <a href="http://greenbuildinglawbrief.blogspot.com/2010/04/sustainable-communities-act-of-2010.html">here</a>]. The other bills of note to the green building industry concern, among other things, a new State initiative for Environmentally Preferable Purchasing, a new LEED mandate for community college projects, and homeowners’ and condominium owners’ right to use clotheslines to dry their laundry. Listed below are summaries of these and a few other relevant bills, with links to the text as passed:<br />
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<ul><li><a href="http://mlis.state.md.us/2010rs/bills/hb/hb1164t.pdf">HB 1164</a> substantially broadens Maryland’s use of <a href="http://www.lgean.org/p2/epp.htm">Environmentally Preferable Purchasing</a>, sometimes referred to as “Green Procurement.” It creates the Maryland Green Purchasing Committee, which is charged with drafting a strategy to increase environmentally preferable purchasing as well as a best practices manual for such purchasing. The committee is specifically directed to look into smart meters, the reduction of operating times for HVAC systems in State buildings, increased energy efficiency from new computer servers and data storage centers, and the purchase of food containers made of preferred materials. The Committee will have to report on its efforts annually to the General Assembly. Additionally, the bill mandates that recycled paper make up 90% of the paper purchased by the Department of General Services and directs that the State use compost for fertilizer “to the maximum extent practicable.” You may have heard about this bill in the context of its <a href="http://www.corridorinc.com/corridor-news-mainmenu-119/special-reports-mainmenu-157/4120-bill-would-require-greener-state-purchases-but-manufacturers-balk?fontstyle=f-smaller">proposed elimination of State purchase of polystyrene products</a>, which ran into opposition from Solo Cup Co. That provision was eliminated from the bill as passed. </li>
<li><a href="http://mlis.state.md.us/2010rs/bills/hb/hb1044t.pdf">HB 1044</a> extends the requirements of the <a href="http://mlis.state.md.us/2008rs/bills/sb/sb0208t.pdf">High Performance Building Act of 2008</a> to projects funded by the State’s Community College Grant Program, under which the State pays for a percentage of new community college buildings and the local government pays for the rest. The High Performance Building Act provides that most new or renovated State buildings and new public school buildings are to be built to comply with the requirements of the LEED Silver rating or its equivalent. Most new construction on Maryland community college campuses will now also have to meet this LEED Silver or equivalent standard. Interestingly, on pages 3 and 4 of the <a href="http://mlis.state.md.us/2010rs/fnotes/bil_0004/hb1044.pdf">Fiscal and Policy Note</a> for this bill, the Department of Legislative Services surveys the cost premium for LEED compliance for completed State-built LEED-compliant buildings and estimates that new community college projects will see a two percent construction cost increase resulting from the LEED mandate. HB 1044 does not provide for additional state funding for these projects.</li>
<li><a href="http://mlis.state.md.us/2010rs/bills/sb/sb0224e.pdf">SB 224</a> bans homeowners’ associations and condominium associations from enacting complete prohibitions on the use of clotheslines for clothes drying. While such associations may place reasonable restrictions on the placement, size and appearance of clotheslines, they can only do so after a public meeting. With this bill, Maryland joins a number of other states in passing so-called “right-to-dry” legislation. Clotheslines have in recent years experienced a <a href="http://www.csmonitor.com/2007/0824/p01s03-ussc.html">resurgence in popularity</a> as an energy-saving method of drying clothes. However, many HOA’s and condo associations have enacted bylaws that ban clotheslines, which are often <a href="http://www.nytimes.com/2009/10/11/us/11clothesline.html">considered eyesores</a>. Those bylaws will need to be revisited in light of SB 224. </li>
<li><a href="http://mlis.state.md.us/2010rs/bills/hb/hb1062t.pdf">HB 1062</a> permits Maryland counties and the City of Baltimore ("counties" for short) to create property tax credits for real property used for urban agriculture. The property subject to such tax credit must be between one-eighth of an acre and two acres in size, be used exclusively for agriculture, and lie in a Priority Funding Area. Counties are permitted to enact stricter requirements for the tax credit. Under Maryland’s smart growth policy, Priority Funding Areas are those areas that Maryland state and local governments have designated for encouragement and support of economic development and new growth. These include the entire area inside the Washington and Baltimore Beltways and urban and dense suburban locations throughout the state; for a map, click <a href="http://www.dnr.state.md.us/education/growfromhere/lesson15/mdp/PFAMAP.HTML">here</a>. It is up to the counties to enact the credit, and they will take a revenue hit in so doing. Given the current economic climate, it is unclear how many counties will choose to create this tax credit in the near future, and how broad those programs will be.</li>
<li><a href="http://mlis.state.md.us/2010rs/bills/hb/hb1112t.pdf">HB 1112</a> permits Carroll County to alter its existing green building tax credit program by extending it to residential buildings. It is likely the county will elect to use this new authorization to provide tax credits for green residential building, as the bill was sponsored by the Carroll County Delegation. <a href="http://www.wtplaw.com/attorney.cfm?id=206">Martha Perkins</a> analyzed Carroll County’s existing green building tax credit program in this 2009 <a href="http://www.wtplaw.com/publication.cfm?sp=publication&id=306">article</a> for the <a href="http://www.wtplaw.com/newsletter.cfm?sp=newsletter&tp=cat&ID=13">Green Building and Sustainability Newsletter</a>.</li>
</ul>To date, Governor O’Malley has not signed any of the bills listed above. Maryland’s Governors typically extend bill signings for several weeks after the close of the legislative session. <br />
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-- <a href="http://www.avvo.com/attorneys/william-pearce-1557752.html">Will Pearce, LEED AP BD+C</a>Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com3tag:blogger.com,1999:blog-7728639952899979779.post-13369962081377032092010-04-16T15:14:00.001-04:002011-03-31T22:45:58.215-04:00Sustainability Efforts at Aberdeen Proving Ground<div><a href="http://www.avvo.com/attorneys/william-pearce-1557752.html">Will Pearce</a> recently authored a post over on the <a href="http://wtpbracblog.blogspot.com/">Whiteford, Taylor & Preston BRAC Blog</a> on Aberdeen Proving Ground's <a href="http://www.mde.maryland.gov/assets/other/USArmy_Garrison_Aberdeen_Proving_Ground_Profile.pdf">profile</a> in the <a href="http://www.mde.maryland.gov/MarylandGreen/joinhere.html">Maryland Green Registry</a>. Check his post out <a href="http://wtpbracblog.blogspot.com/2010/04/sustainability-efforts-at-aberdeen.html">here</a>. The BRAC Blog, which is dedicated to covering the challenges and opportunities presented by the Department of Defense’s Base Realignment and Closure process (“BRAC” for short) from a legal perspective, is run by members of <a href="http://www.wtplaw.com/practice.cfm?id=6">WTP's Government Contracts/BRAC Industry Group</a>. </div>Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0tag:blogger.com,1999:blog-7728639952899979779.post-30930116051994439282010-04-15T21:39:00.000-04:002010-04-15T21:39:57.425-04:00Whiteford, Taylor & Preston Green Building and Sustainability NewsletterEvery two weeks, Whiteford, Taylor & Preston’s Green Building and Sustainability Industry Group publishes an <a href="http://www.wtplaw.com/newsletter.cfm?sp=newsletter&tp=cat&ID=13">e-newsletter</a>, edited by <a href="http://www.wtplaw.com/attorney.cfm?id=209">Adam Baker, LEED AP BD+C</a>, covering sustainability issues that impact a wide array of industries, including Real Estate, Construction, Government Contracts, Manufacturing, and Intellectual Property. The latest edition can be found <a href="https://app.e2ma.net/app/view:CampaignPublic/id:33095.8177551873/rid:e1c6db912b3907b37307966c8de97ab6">here</a>. <a href="http://www.wtplaw.com/attorney.cfm?id=149">Dino Lafiandra</a> discusses the Maryland General Assembly's choice to use millions of dollars from the <a href="http://www.rggi.org/home">Regional Greenhouse Gas Initiative</a> that had been initially earmarked to fund energy efficiency programs to instead fund the state's direct bill pay assistance program, which helps low income families pay their utility bills.Green Building Law Briefhttp://www.blogger.com/profile/05687801916257990654noreply@blogger.com0