HOUSE BILL REPORT
HB 1272



         As Reported by House Committee On:       
Capital Budget

Title: An act relating to high-performance green buildings.

Brief Description: Requiring public buildings to be built using high-performance green building standards.

Sponsors: Representatives Dunshee, Jarrett, Linville, Nixon, Hunt, Rodne, Strow, Tom, McDermott, Sommers, Appleton, Simpson, Dickerson, Lovick, Hasegawa, Sells, Cody, Morrell, Chase, Hudgins, B. Sullivan, Schual-Berke, Williams, Lantz, Kilmer, Moeller, Roberts, Upthegrove, McCoy, Hunter, Darneille, Miloscia, Green, O'Brien, P. Sullivan, Anderson, Kenney, Murray, Wallace, Ormsby, Haigh, Kagi and McIntire.

Brief History:

Capital Budget: 1/31/05, 2/24/05 [DPS].

Brief Summary of Substitute Bill
  • Requires major facility projects of public agencies, public school districts, and other entities who receive funding in the state capital budget to be designed, constructed, and certified to a specified performance standard (LEED silver standard or the Washington sustainable school design protocol).
  • Directs the development of program guidelines, development of an ongoing evaluation process, creation of an advisory committee, and the adoption of rules to implement the program.
    • Directs the Joint Legislative Audit and Review Committee to conduct a performance audit of the high-performance buildings program and submit a preliminary report to the Legislature by December 1, 2010, and a final report by July 1, 2011.


HOUSE COMMITTEE ON CAPITAL BUDGET

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 24 members: Representatives Dunshee, Chair; Ormsby, Vice Chair; Jarrett, Ranking Minority Member; Hankins, Assistant Ranking Minority Member; Blake, Chase, Cox, DeBolt, Eickmeyer, Ericks, Ericksen, Flannigan, Green, Hasegawa, Lantz, McCune, Moeller, Morrell, O'Brien, Schual-Berke, Serben, Springer, Strow and Upthegrove.

Minority Report: Do not pass. Signed by 5 members: Representatives Holmquist, Kretz, Kristiansen, Newhouse and Roach.

Staff: Marziah Kiehn-Sanford (786-7349).

Background:

"Green building" or sustainable building practices are measures of energy efficiency, water conservation, waste minimization, pollution prevention, indoor environmental quality, and resource-efficient materials during the lifetime of a building. These practices occur during design, construction, and operation of a building and its landscaping. Two systems exist to evaluate the degree of sustainability of a building project: Built Green™ and Leadership in Energy and Environmental Design (LEED)™. Built Green is used primarily for residential construction and remodeling; LEED is used for commercial projects and housing over four stories. The LEED was established by the U.S. Green Building Council (USGBC).

The LEED Certification distinguishes building projects that have demonstrated a commitment to sustainability by meeting a high level of performance standards. The certification is a for fee process using a prerequisite and point system to rate a building's energy efficiency. The LEED rated buildings are registered with USGBC during the design process, and become fully certified upon completion of construction. The LEED focuses on five major areas of environmental sustainability:

Prerequisites are specified in each of the above categories, and points must be earned in each category for a building to become certified. The LEED also allows for innovation points to encourage processes and technologies that are not yet mainstream, but show innovation and creativity in building design. Buildings are rated on a four-step scale from lowest to highest: LEED Certified, LEED Silver, LEED Gold, and LEED Platinum.

Since 2002, the governor has issued three Executive Orders relating to sustainable practices by state agencies, including building construction. The latest, Executive Order 05-01 issued on January 5, 2005, establishes further sustainability and efficiency goals for state operations. It contains additional direction relating to the use of forest products in all building construction projects and major remodels over 25,000 gross square feet.

Executive Order 05-01 directs state agencies to incorporate green building practices in all new construction projects and major remodels over 25,000 gross square feet entering predesign in the 2005-07 biennium and thereafter. The LEED silver standard certification is required or an alternative equivalent certification as determined by the Department of General Administration (GA).

The GA is directed to develop and implement a review to ensure that sustainable building practices are consistent with LEED silver standard. Building projects between 5,000 and 25,000 gross square feet and entering predesign or design in the 2005-07 biennium, are subject to this review. The GA is authorized to collect a fee for review, training, and support to other agencies, and develop processes and procedures to ensure that sustainable building practices are incorporated into design and construction processes. The Executive Order requires other targets and reductions to achieve gains in energy efficiency which are not related to facilities.


Summary of Substitute Bill:

Definitions:


"Institutions of higher education" is defined as the state's public four-year baccalaureate institutions, and the community and technical colleges.

"LEED silver standard" is defined as the U.S. Green Building Council Leadership in Energy and Environmental Design green building rating standard, also referred to as silver standard.

"Major facility project" is defined as: (a) a construction project larger than 5,000 gross square feet of occupied space; and (b) a building renovation project when the cost is greater than 50 percent of the assessed value and the project is larger than 5,000 gross square feet of occupied space.

"Major facility project" does not include: (a) projects for which the applicable agency and design team determine the LEED silver standard or the Washington sustainable school design protocol not to be practicable; or (b) transmitter buildings, pumping stations, or other similar building types as determined by the GA. When LEED silver standard is not practicable, then it must be determined if any LEED standard is practicable for the project. If LEED standards are not followed for the project, the agency must report these reasons to the GA.

"Public agency" is defined as every state office, officer, board, commission, committee, bureau, department, and public higher education institution.

"Public school district" is defined as a school district eligible to receive basic education moneys pursuant to RCW 28A.150.250 and RCW 28A.150.260.

"Washington sustainable school design protocol" is defined as the school design protocol and related information developed by the State Board of Education (SBE) and the Office of the Superintendent of Public Instruction (OSPI), in conjunction with school districts and the School Facilities Advisory Board.

Certification and Reporting Requirements

The LEED silver certification is required for all major facility projects of public agencies and any other entity receiving any funding in a state capital budget, to the extent appropriate LEED silver standards exist for that type of building or facility. The LEED silver certification or the Washington sustainable school design protocol is required for all public school districts receiving any funding in a state capital budget, to the extent these standards exist for that type of building or facility. These requirements apply to projects that have not entered into the design phase prior to the effective date of the bill, except that public school districts are subject to the following dates:

Affordable housing projects receiving funding in a state capital budget are exempt from the certification requirements outlined in the bill. By July 1, 2008, the Department of Community, Trade and Economic Development (CTED) must identify, implement, and apply a sustainable building program for Housing Trust Fund projects.

Public agencies and public school districts must monitor and document ongoing operating savings resulting from majority facility projects designed, constructed, and certified using such standards. The results must be reported annually by public agencies to the GA and by public school districts to the OSPI. The GA and the OSPI are directed to consolidate the individual reports into a single biennial report due to the governor and the Legislature on September 1, beginning in 2006.

By January 1, 2009, the GA and the OSPI must summarize the reports submitted to the governor and the Legislature and submit reports to the House Capital Budget Committee and Senate Ways and Means Committee for review of the program's performance and consideration of any changes that may be needed to adapt the program to any new or modified standards for high-performance buildings.

Guidelines and Administration

The GA and the SBE are directed to develop and issue guidelines for agencies and public school districts, including a procedure and method for verifying activities necessary for at least LEED silver certification or the Washington sustainable school design protocol. The GA and the OSPI must amend their architectural and engineering fee schedules to accommodate design requirements of major facility projects.

The GA and the SBE must create advisory committees to provide advice on implementing the provisions of the bill, provide recommendations on an education process and an ongoing evaluation or feedback process to help the GA and the SBE in their tasks.

In adopting implementation rules, the SBE must review and modify the current requirement for an energy conservation report review by the GA. In addition, the SBE must: (a) review and modify the current requirements for value engineering, constructability review, and building commissioning; and (b) review private and public utility providers' capacity and financial/technical assistance programs for affected public school districts to monitor and report utility consumption for purposes of reporting to the OSPI.

Additional Provisions

Building commissioning and preproposal conferences are required for major facility projects.

Design or construction teams may not be held liable for failure to achieve the LEED standard, if a good faith effort was made.

In determining compliance with this bill, the GA must credit a project for using wood products with a credible third party sustainable forest certification or from forests regulated under the Washington Forest Practices Act.

The Joint Legislative Audit and Review Committee is directed to conduct a performance audit of the high-performance buildings program and submit a preliminary report to the Legislature by December 1, 2010, and a final report by July 1, 2011.

Substitute Bill Compared to Original Bill:

The substitute bill changes high performance "green" buildings to high performance "public" buildings.

Changes are made to the definition section. The substitute bill deletes definitions for "comparable design standard" and "public higher education institution" and adds definitions on "high performance public buildings," "institutions of higher education," and "Washington sustainable school design protocol." The definition of "major facility project" and "public school district" are modified.

Other provisions are added or modified. Additional representation is included in the GA high performance advisory committee. Building commissioning and pre-proposal conferences are required for major facility projects. Design or construction teams may not be held liable for failure to achieve the LEED standard, if a good faith effort was made. Affordable housing projects funded in the capital budget are exempt, although the CTED must implement a sustainable building program for housing by July 2008. In determining compliance with this bill, the GA must credit a project for using wood products with a credible third party sustainable forest certification or from forests regulated under the Washington Forest Practices Act.


Appropriation: None.

Fiscal Note: Available.

Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of session in which bill is passed.

Testimony For (Original bill): LEED is a reasonable, responsible, attainable standard and the only nationally recognized authority in environmental accountability. In the case of schools and other public buildings, it is a cost effective measure when building and aids in reducing life cycle costs. Improved student performance is linked to healthier buildings: 15 percent decrease in absenteeism, and 20 percent increase in test scores. Since sustainable practices are good for business, the private sector and business community are ready to implement the LEED silver standard and this legislation has support from the construction and architectural communities. The economic benefits to the state are long-term. The bill connects the capital and operating budgets, thus reducing taxes and creating grants and incentives, creates well-paying Washington jobs, places purchasing priorities on Washington products and creates a market for recycled wood products. Implementing this standard diversifies local economies and builds a demand for innovation. Furthermore, there is a demand for projects with the LEED standard from clients. The LEED silver standard is market-based and contains a series of credit options providing flexibility in design and construction product options. This legislation demonstrates that labor and the environment can work together.

Testimony With Concerns (Original bill): The LEED standard goes too far too fast and the potential exists to create a negative attitude towards "green" design. More flexibility in and increased affordability of the LEED standard were recommended. It would also be beneficial to give protocol more time and encourage the study of more pilot programs.

Testimony Against (Original bill): Implementing the LEED silver standard for major facility projects discriminates against wood products. The bill does not recognize the Washington Forest Practices Act. Instead of mandating the LEED silver standard, encouraging builders and planners to follow LEED standards would be more beneficial to the environment and would increase the use of renewable products. Implementing the LEED silver standard limits market choice. The LEED standards would replace current wood certification standards, discouraging the use of renewable sources. The LEED standards are not concurrent with wood certification. Opponents support standards-based and consensus-based measures rather than a mandate.

Persons Testifying: (In support) Representative Dunshee, Prime sponsor; Larry Davis, State Board of Education; Carter Bagg, Office of the Superintendant of Public Instruction; Colin Jones, Northwest Architectural Company; Brian Carter, Intergus Architecture; Kathleen O'Brien, O'Brien and Company, Pilot Project Consultant; Nancy Josephson, Northshore School District; Tim Byrne, Olympia School District; Greg Brown, Spokane Public Schools; Pete Wall and Lorraine Wilson, Tacoma Schools; Janet Strong, Chehalis River Council; Peter Steinbrueck, City of Seattle; Bruce Blackner, Northwest Architectural; Mark Huppert, Catapult Development; Rod Butler, Zeck Development; Carl See, University of Washington Graduate and Professional Student Senate; Aaron Best, University of Washington Sustainable Alliance; Nick Cizeck, Western Washington; Stan Bowman and Tony Gale, American Institute of Architects Washington Council; Cliff Webster, Architects and Engineers Legislative Council; Mibeth Bustille-Booth, Washington Education Association; Amanda Sturgeon, Fulton Gale Architects; Lee Falck, Brandund Furniture; Ian Hanna, Northwest Natural Resource Group; Drew Gagnes, Magnuson, Klemeneic; Nick Ferdici, American Lung Association; Rich Feldman, Apollo Alliance; Mitch Seaman, Building and Construction Trades Council; John Littel, Seattle Building and Construction Trades Council; and Mitch Denning, Alliance of Educational Association.

(With concerns) Terry Teale, Council of Presidents; Tom Henderson, Community and Technical Colleges; Craig Curtis, Architects and Engineers Legislative Council; Dan Steele, School Board members; Rainer Hauser, Association of Washington Principals; Denise Stiffarm, King County School Coalition, Pierce County School Coalition; and Kristen Sawin, Association of Washington Builders.

(Opposed) Robert Hemsley, Association of Western Pulp and Paper Workers Union; and Bill Garvin and Bill Stauffacher, Washington Forest Protection Association.

Persons Signed In To Testify But Not Testifying: (In support) Sandra Mallory, Traugott Terrace; Elizabeth Davis, League of Women Voters; Clifford Traisman, Washington Environmental Council, Washington Conservation Voters; Bill LaBorde, Northwest Energy Coalition; Stan Price; Nick Federici, American Lung Association; Jeffery Soth, International Union of Operating Engineers Local 302; Larry Ganders, Washington State University; and Allison Capen, Boxwood.

(In support with concerns) Rick Slunaker, Associated General Contractors; Edie Harding, The Evergreen State College; Marilyn Cox, Council of Presidents, University of Washington; and Grant Fredricks, Department of General Administration.

(Opposed) Ken Sprague, IAM Woodworkers.