Theodore L. Senet, Esq., LEED AP

AGC Legal Advisory Committee, June 2015

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High Performance Buildings

o New Building Codes - Net Zero Energy Goals

o Existing Buildings - Energy Use Reporting

o New Project Delivery and Performance Standards

Renewable Energy Portfolio Standards

o Utility Mandates

o Community Aggregation – Microgrids

o PACE Financing

Transportation

o SB 350

o Electric Vehicle Laws

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Transformation to a New Energy Economy

Green Building, Leasing & Sustainability

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AB 32: Reduce GHG Emissions to 1990 Levels by 2020

In 2008, the AB 32 Scoping Plan was

approved by the Air Resources Board (ARB)

containing the main sustainability strategies.

In 2010, ARB adopted the first large scale

Cap-and-Trade Program in the U.S.

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In 2012, CA held the first quarterly Allowance

Auction

In 2013, the first compliance period covered

electrical power generators and large industrial

facilities

In 2015, the second compliance period will add

distributors of transportation fuels, natural gas

and other fuels

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By 2030, the proposed Senate Bill 350 would:

Double efficiency of existing buildings

Increase RPS to 50%

50% reduction in petroleum use

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New Federal Courthouse in Los Angeles

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In 2010, California adopted the California Green

Building Standards Code (CALGreen)

In 2013, new Title 24 Building Efficiency Standards:

25% more efficient for residential construction and

30% more efficient for nonresidential construction

New Standards effective on July 1, 2014, set new

energy standards for homes & businesses

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Contents

• Part 1 ‐California Administrative Code

• Part 2 ‐California Building Code

• Part 2.5 California Residential Code

• Part 3 ‐California Electrical Code

• Part 4 ‐California Mechanical Code

• Part 5 ‐California Plumbing Code

• Part 6 ‐California Energy Code

• Part 7 ‐Vacant

• Part 8 ‐California Historical Building Code

• Part 9 ‐California Fire Code

• Part 10 ‐California Existing Building Code

• Part 11‐California Green Building Standards Code

• Part 12 ‐California Referenced Standards Code 12

Major area of change:

Demand Response

Solar Zones

Commissioning

Light fixture Controls

Daylighting requirements

Increased HVAC efficiencies

Power Controls

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What is commissioning?

A quality assurance process that begins

during design and continues through

construction. Commissioning (Cx) ensures

that new buildings operate as intended.

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Major systems and controls

must be tested (M&V).

Prior to certificate of

occupancy, a Commissioning

Report must be submitted.

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Residential Non-residential

New Construction New Construction

ZNE by 2020 ZNE by 2030

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Green Building, Leasing & Sustainability

New buildings are typically less than

5% of the entire stock of buildings

18 © 2015 City of Los Angeles Existing Building Energy and Water Efficiency Program

Efficient Buildings v. Inefficient Buildings

19 © 2014 Institute for Market Transformation

20 © 2014 Gibbs Giden Locher Turner Senet & Wittbrodt LLP

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Benchmarking compares 12 months of

consecutive energy consumption of a building

(electric and gas) against other similar

buildings.

Green Building, Leasing & Sustainability

Green Building, Leasing & Sustainability

Green Building, Leasing & Sustainability

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The law requires that building

owners or operators disclose

benchmarking data and energy

use to a prospective buyers,

lessees of the entire building, or

building lenders.

The disclosure requirement took

effect on January 1, 2014, in

stages, beginning with

commercial buildings over

50,000 sq. ft.

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Disclosure for non-residential buildings between 5,000

and 10,000 sf has been postponed to July 1, 2016.

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Green Building, Leasing & Sustainability

Owners, Buyers, Tenants & Lenders can

compare efficiency of buildings.

Tracking data can improve performance.

Retrofits can reduce operating costs,

increased rents and building values.

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1. 2005 & 2008, McGraw-Hill Construction Confidential. All information presented © McGraw-Hill Construction, 2008. All rights reserved. New

Construction. 2. 2010 McGraw-Hill, CBRE, University of San Diego. Study on LEED for EXISTING BUILDINGS.

LEED – Potential Benefits

New Construction Existing

Buildings

20051 20081 20102

Decreased Operating Costs 8-9% 13.6% 8.0%

Increased Building Values 7.5% 10.9% 4.8%

Improvement in ROI 6.6% 9.9% 4.1%

Increased Occupancy 3.5% 6.4% 5.3%

Rent Rise 3.0% 6.1% 1.0%

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Potential Green Building Benefits

Major liabilities for designers, builders, suppliers

and owners:

Failure to meet regulatory requirements or

performance specifications

Failure to obtain third party certifications

Failure to comply with reporting laws

Failure to perform as advertised, represented

or warranted

Untested or unhealthy materials / equipment

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AIA B101-2007 SP § 3.3.5.2

The Architect shall discuss with the Owner the

proposed use of such materials or equipment and

potential effects ….

In the event the Owner elects to proceed with the use

of such materials or equipment, the Architect shall be

permitted to rely on the manufacturer’s or supplier’s

representations and shall not be responsible for any

failure ….

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Product “Red” Lists

Credit: Healthy Building Network 34

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Utilities are required to meet CA renewable energy portfolio (RPS) standard of 33% by 2020

Governor’s goal: 50% by 2030

CPUC can raise RPS above 33% Allows Tiered Rate Increases

Extends Net Metering to 2017 Capped at 5%

Permits Fixed Charge Capped at $10 per Month

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2002:

Public Utilities Code Section 366.2 authorized

community choice aggregation program

2014:

CEC announces $26.5 million in grants for

microgrid projects

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Benefits: • Increased reliability, efficiency and resiliency

• Can “island” or disconnect from grid to

provide temporary power

• More efficient localized monitoring and

troubleshooting

• Local control over rate increases

Sonoma Clean Power

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EV HOV use extended to 2019 or until federal authorization

expires. AB 266 / SB 286

Building standards for EV charging stations in multi-family and

non-residential. AB 1092

EV Charging Station Open Access Act – limits restrictions on

access to charging stations. SB 454

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Annual Investment in 2013 Total Capacity at End of 2013

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Between 2006 and 2013, California has

received more clean technology venture

capital investment than all other states

combined ($21 billion in CA vs $19 billion

for the rest of the U.S.).

Source: California Climate Leadership citing CA Air Recourses Board, CA

Dept. of Finance, the Bureau of Labor Statistics and Next 10

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2014-2015 Budget: $250 million Cap-and-Trade

Auction Revenue

2015-2016 Budget:

o 25% of budget dedicated to HSR

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For more information,

please see Mr. Senet’s article entitled:

New California Sustainability Laws

2015 Winter Edition of the Public Law Journal,

State Bar of California

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