The Man Behind the Green (LEED) Curtain

The pivotal scene in the movie The Wizard of Oz comes when Dorothy Gale’s dog Toto pulls back a green curtain behind the fire-belching “Wizard”, to reveal a “humbug” patent medicine salesman.  A similar situation exists in the world of “green” building,  LEED consultant Dan Sammartano, LEED AP, general manager, Salian Commercial Construction Services, told the attendees at the Green Buildings & New Technology Conference held in Clayton on Thursday, Nov. 11.

Sammartano, who has consulted on many LEED projects around the country, including the Platinum LEED Alberici building, expressed concern with the current state of LEED building. While LEED standards have accomplished a lot in terms of establishing a baseline of performance and legitimizing sustainable construction, the unpredictability of quantifiable data on energy savings predicted in LEED models puts the program’s credibility at risk, Sammartano said.

“A recurring theme at the conference was the premium LEED is bringing to the value of commercial buildings,” Sammartano said.  “This is evidenced by a growing interest in these buildings even during this economic downturn. Preferred lending and increased valuations were also discussed. If we are to put a premium on a building’s LEED certification believing they are energy efficient, than the system should assure delivery of the intended efficiencies.
 
“As a LEED practitioner, I am concerned about the effectiveness of the LEED® certification system. If we are to believe LEED brings a premium to owners, lenders and tenants, then we’d better make sure it has true value. What has been shown in recent studies is that the energy savings portion of that value cannot be counted on in that sample.

“One study concluded that the ratio between predicted and measured results were all over the chart, pointing to an unreliability that should make any LEED® practitioner or owner worry.  Now government regulations are appearing which require true benchmarking of energy use through Energy Star Portfolio Manager for commercial buildings.

“Soon these energy data will be made public, and those which achieve high rates of energy efficiency will be able to leverage this premium in ways LEED® may not.  If LEED doesn’t solve the problem of predictive energy use by requiring actual energy use data for certification, then LEED stands the risk of being passed by these benchmarking efforts,” Sammartano stated.

Other speakers included Michael Clark of Green Street Properties, LLC, who said that his company is still seeing strong demand for green construction, even as the economy tanks. “Boardrooms are filled with people who are not sophisticated at all about green building but are asking their people, the questions,” Clark said. He said that his company has thrived by focusing on marketing to the growing segment of business that is embracing sustainability, and by partnering with governmental entities to make the numbers work on the existing buildings that Green Street redevelops.

Other speakers included a panel of attorneys who discussed the potential liabilities and innovative leases needed for green projects and accountant Teri Samples, CPA, shareholder in MPP&W, who presented models for financing, cost accounting, and structuring deals on sustainable projects.

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