Many companies take vigorous measures to achieve LEED Certification for their building projects. However, LEED Certification does not guarantee that the building will be highly energy efficient. What explains this gap? What can be done to align LEED Certification and energy efficiency?
Why LEED Certification Does Not Ensure Energy Efficiency
Introduced in 1998, Leadership in Energy and Environmental Design (LEED) is a certification provided by the U.S. Green Building Council (USGBC). LEED Certification is given to building projects that meet certain standards on a checklist of sustainability measures. These standards cover the construction and design of a building.
Because the public does not know the specifics of LEED, real estate developers and companies are using LEED Certification as a strategy to market themselves as being green, obtain tax benefits, and increase occupancy rates.
The importance of LEED Certification is illustrated by the first LEED lawsuit earlier this year. The developer of a Maryland project sued the general contractor, alleging that the contractor failed to meet LEED standards and failed to meet deadlines, thereby costing the building its LEED related tax credit of $635,000 on a $7.5 million project. Without the tax credit, the project was allegedly not economically viable.
Yet, LEED Certification does not mean that the building's energy efficiency has been measured or certified to meet a particular standard. Mary Ann Lazarus, the director of sustainable design for HOK, an architecture firm based in San Francisco, explains the disconnect:
“There’s a big distinction between LEED certification and energy conservation. LEED is an evolving process in which energy conservation is beginning to play a greater role.”
The USGBC admits that about 25% of the LEED certified buildings do not perform as their designs would predict. One reason is that energy models are imprecise and have difficulty predicting how the buildings will be used. Energy conservation and energy efficiency is monitored at less than 50% of LEED certified buildings.
Ways To Close The Gap
Proponents of LEED recognize that something must be done to close the gap.
The USGBC recently announced that it will begin collecting energy performance data from LEED Certification on a voluntary basis. Such data will help USGBC define different levels of energy efficient buildings. Once that standard is set, it can be incorporated into the LEED Certification process.
If energy performance becomes part of the LEED Certification, that means that LEED Certification will evolve into a re-certification process. Projects could be re-evaluated annually to see if they still meet the LEED Certification or re-certification criteria.
It makes no sense to keep LEED Certification as a one time stamp of approval. Standards for energy efficiency may change over time. The occupancy level of a building and how energy is used in it may also change over time. These factors affect energy efficiency and energy conservation, and thus buildings should be re-certified as meeting LEED standards over time.
Implications of LEED Re-Certification
Any attempt to introduce a re-certification program will raise legal issues. Projects that have previously received LEED Certification will be concerned that they may not receive re-certification. That could affect their tax credits and their image as a green, sustainable project.
If re-certification becomes a reality, developers and companies will have to spend considerable effort ensuring that their buildings are energy efficient. This will be added cost. Most important, it will mean that LEED Certification will not be a one time, but will become a central part of the operational strategy. Buildings that fail to achieve re-certification may face lawsuits from tenants. In this way, the re-certification will implicate both business strategy and legal strategy.
Douglas Y. Park
Twitter: @DougYPark
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