Hawaii Green Building Law

So far this year, 83 projects in Hawaii have applied for LEED certification from the U.S. Green Building Council, compared to 48 applications in all of 2008, and 35 applications in 2007. Nine Hawaii projects have actually received LEED certification this year.

The increase in Hawaii applications is in pace with the overall rise in green building throughout the nation. According to a recent study, there is an increase in the perceived value of green building among architects, engineering firms, contractors and owners over the last three years, especially as related to financial benefits. The study noted that the benefits include:

Decreases of 13.6% in operating costs from green building (up from 8.5% in 2005, a 60% increase);
Increases of 10.9% in building values from green (up from 7.5% in 2005, a 45% increase);
Increases of 9.9% in ROI from green (up from 6.6% in 2005, a 50% increase)

Other findings of the report include:

77% of the industry expects revenues to grow as a result of green building;
Education is posing a tremendous opportunity for green building, with architects, engineers and contractors reporting that the largest share of their green work in 2013 will be from the education sector;
Nearly two-thirds of the industry report that publicity is a major reason for going green, up from only 44% in 2005. This growth signifies how much more attention green is now getting from the media;
Green building products are becoming more common in use.

As previously stated, developers’ expectations as to the end product of green buildings are high. At the same time, each building’s performance, cost savings and return on investment is often unpredictable. The unpredictability coupled with the high expectations create a breeding ground for potential litigation. All stakeholders must address the risks and liabilities of building green before starting construction.

Under a new Colorado law, homeowners may obtain loans for solar equipment payable to a third party. The new law opens up the option for homeowners to lease solar equipment rather than buy it.

Under solar leases, homeowners typically pay a solar-leasing company a one-time installation fee, plus monthly bills for the electricity. Often the solar installer owns the system and is responsible for operating and maintaining it.

Solar leases are another option in greening buildings. It is important, however, for all parties to a solar lease to understand and document the duties and obligations of each party.

According to a study of college sustainability conducted by the Sustainable Endowments Institue, the University of Hawaii received a “C” grade.

The study rated colleges in nine categories: Administration, Climate Change & Energy, Food & Recycling, Green Building, Student Involvement, Transportation, Endowment Transparency, Investment Priorities and Shareholder Engagement. The University of Hawaii received its highest grade (”B”) in the Adminstration category which the study reports:

The assistant vice chancellor for financial and physical management is in charge of campus sustainability and of building design and performance. The campus also employs an energy manager. The campus facilities planning board is responsible for review and approval of sustainability projects. The chancellor’s office has established a sustainability website.

The University of Hawaii received a “C” grade in the green building category. The report states:

As per state law, all new projects must meet LEED Silver standards at a minimum. Facilities has committed to implementing sustainable engineering practices and adopting relevant energy efficiency standards. A new dorm, Fraer Hall, is the first LEED-certified building on campus, and three projects are seeking to meet or exceed LEED Silver standards.

Hawaii’s requirement that all new projects must meet LEED silver standards may boost the University’s ranking over time as more sustatinable buildings will be constructed. In addition, the upcoming City and County of Honolulu rail project will provide additional transportation options to incorporate into the University’s sustainability efforts. Nevertheless, as pereviously discussed, all state projects could be severely hampered by budget constraints and furloughs. These contraints could negatively impact future sustainability ratings.

The top rated college campuses include the University of North Carolina at Chapel Hill, Pacific Lutheran University in Oregon, Stanford University, University of Colorado and Arizona State University.

I previously posted on the prospect that LEED projects, owned by the State of Hawaii could risk decertification due to budget cuts and improper maintenance.

We’re one step closer.

Hawaii public school teachers (in the face of State budget cuts) agreed to shut down the Hawaii public school system for 17 Fridays beginning in October. Furlough Fridays (as they are referred to in Hawaii) could have a drastic impact on the State’s LEED certified buildings.

Hawaii law requires all major state renovation or construction projects be designed and built to meet LEED silver or Green Globes standards. Several new state building projects have achieved LEED certification, including buildings on public school campuses and buildings that are part of the University of Hawaii system. The budget cuts and Furlough Fridays could prevent the State from providing adequate maintenance to these green buildings.

At this point, a project can be de-certified if it fails to provide ongoing monitoring data. The USGBC has not yet stated what will happen if a building’s energy and/or water usage is higher than projected, which could occur if a building is not properly maintained. Nevertheless, even if a project achieves LEED certification, funding issues could prohibit the state from keeping up with the USGBC’s minimum program requirements.