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Channel: The Builders Counsel: A Construction Law Blog from Washington Construction Lawyer & LEED AP Douglas S. Reiser » CALGreen
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Is LEED Too Expensive? Cities Skip The Plaque, Build Their Own Metrics

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The plaque comes with a hefty price

Mimics, mimics everywhere. The LEED system has such a good thing going that you had to see some copycats pop up right?  But, did you expect them to be your own government?

The USGBC’s LEED rating system is the world’s most popular green building performance metric. The LEED system is a well-known and well-respected certification. As of early 2010, 34 states and over 200 municipalities had LEED mandates for all new construction. Many more cities have required compliance with the performance metric on recent construction projects.

But over the past year, LEED has seen a rash of competitors, or perhaps, copycats. Even governments see the opportunity to seize the good of the LEED system and put it under there own letterhead – all with a new name.

But is this a response to the problems with using a third-party certification body for government compliance? Is it a response to the allegations that LEED doesn’t vertify long-term energy performance? Maybe not. Maybe municipalities are simply sick of handing over the cash for the LEED plaque.

LEED is no doubt an expensive process. Many municipalities can no longer justify the cost. Cities in Minnesota were recently outspoken about the $50,000 to $80,000 price tag of certification. Worse yet, most municipalities now see that price tag as simply the cost of a plaque.

In response to questions about why it skipped LEED, Edina, MN officials provided the following:

“Why spend that to get a plaque on the wall saying this is a green building?” Houle said.

Richfield’s new municipal center includes recycled materials, high-efficiency heating and cooling, extensive natural lighting and porous pavers. But City Manager Steve Devich said he couldn’t justify LEED’s expense.

“Is it great to have that kind of seal of approval on a building? Sure,” he said. “But does it make a difference in the day-to-day functioning of the building for Richfield residents? No.”

In fact, this type of mentality appears to be the norm around small municipalities in Minnesota. Who can blame them? Small cities are having trouble meeting meager budgets all around the country. Shaving $80,000 off the cost of a building seems smart, especially when the LEED metric is published online and is easily copied by city building officials.

So can LEED be cheaper? Maybe not. The LEED certification process involves a massive amount of document production, review and verification. Add to that a decade of proprietary research, mass marketing and third-party verification development and the cost makes sense.

Why might LEED still be the choice for many? Remember, LEED has two major things that any generic system lacks:

(1) An unparalleled a marketing image and

(2) a well-developed third-party verification system (GBCI).

Many cities will stay with the LEED certification system for the sole purpose of proving to its taxpayers, that they kept their promise to build a green building.

That said, the USGBC knows that it must adapt or be passed over. As states become more familiar with the LEED performance metric, it has become easier to convince themselves that they should have their own green building codes. (CALGreen is perhaps the best example) But many municipalities are unaware of the immense cost in implementing a completely new and different building code.

The USGBC has to answer a question – How do we continue to provide a service that governments need?  Whether it continue to be LEED certification, some other form of third-party verification, or even pure education (remember the USGBC is a non-profit with a goal), the USGBC has some thinking to do.


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