Archive for the ‘Legislation’ Category

Insiders’ view on regulatory trends

March 4, 2010

Dan Probst - Jones Lang LaSallePosted by:
Dan Probst
Global Lead
United States
Energy and Sustainability Services

The pending Senate bill seemingly took a dramatic turn late last week.  Cap-and-trade, which has been the center of controversy for nearly the past 10 years, is apparently off the table according to Senator Lindsay Graham.  Next month, Senators Graham, Kerry and Lieberman are planning to introduce a new plan which targets three major sources of emissions: utilities, transportation and industry through mandatory caps and carbon taxes.  Exactly what impact this will have on the real estate industry remains to be seen, but this as well as the implications of state and local regulatory trends will be explored at our upcoming webinar on March 11.

At this session, I will be joined by Anne Kelly of Ceres and Andrew Burr of the Institute for Market Transformation.  They will offer an insider’s perspectives on energy and carbon regulatory trends, timelines and hurdles and I will provide insight into potential risks and implications for the real estate industry.

Join us.

Webcast details:
Thursday, March 11th, 2010
11:00 a.m. ET/10:00 a.m. CT/ 8:00 a.m. PT
Discussion and Q&A

To join the webcast (both audio and web):
Call in information—
* +1 800 937 6757
* Password: Jones Lang LaSalle
* Conference ID: 59459445
Login information—
* Meeting URL: Click here
* Meeting ID: P4H7S9

 

Keeping Up with Building Energy Laws

January 26, 2010

Dan Probst - Jones Lang LaSalle

Dan Probst
Global Lead
United States
Energy and Sustainability Services

The pace of U.S. states and cities rolling out legislation on commercial building energy and sustainability standards has accelerated recently. A few high-profile examples:

 ·         The San Francisco Task Force on Existing Commercial Buildings has recommended that Mayor Newsom introduce legislation requiring energy benchmarking in buildings larger than 25,000 square feet and tenant sub-metering in buildings greater than 100,000 square feet, starting in 2011.

 ·         In Washington DC, owners of buildings 200,000 square feet and larger must start entering energy information into ENERGY STAR Portfolio Manager this year under the “Clean and Affordable Energy Act.”

 ·         New York’s City Council passed rules in December requiring building owners to conduct energy audits and start benchmarking data.

 ·         On January 12, California announced the creation of a new Green Building Standards Code (CALGREEN) with comprehensive energy and environmental mandates for all new buildings in the state.

 And so on. Meanwhile, industry protests and legal challenges to some green mandates are taking shape. Where all this will end up is anyone’s guess.

For real estate investors and corporations with commercial property around the country, keeping track of all the requirements—let alone complying with shifting standards—is starting to look like a major headache. We will be keeping a close eye on green building legislation, so be sure to check in with us regularly for updates on what is happening and how it might impact your business.

EPA Action Signals Accelerated Energy Costs

January 14, 2010

Posted by:
Bob Best
Investor Services Lead
United States
Energy and Sustainability Services

The Environmental Protection Agency’s recently-announced proposal for stricter standards for smog-causing pollutants comes with a big price tag … $19 to $90 billion by the year 2020.

Who’s going to pay for it?  We all are.

The key sectors that will bear the primary cost are manufacturers, utilities and oil refiners.  But, that only means that their prices will go up for the rest of us.

We will all feel the pressure to improve energy efficiency accelerate.  Expect to see programs like the EPA’s ENERGY STAR program grow exponentially in the world of real estate, as more buildings embrace energy savings to simply stay cost-competitive in an incredibly competitive marketplace.

A Last Word on Copenhagen

December 29, 2009

Posted By:
Tom Ansell
Valuation Advisory
United Kingdom

The furore surrounding Copenhagen was immense, and at no other time in history has our climate had so much scrutiny. The Copenhagen Accord that emerged is not the comprehensive agreement that many have demanded, nor the total waste of effort that some have claimed, but the foundations for a significant climate deal. Delegates from 192 nations, represented in the final session by India, China, United States, Brazil and South Africa, agreed upon limiting the world’s warming to 2°C, transparency in carbon auditing, and a financial package for the developing world. Angela Merkel called Cop15 the “first step towards a new world climate order,” and next year’s meeting in Mexico could be an even bigger step toward reducing greenhouse gas emissions.

If Copenhagen marks a turning point in global consensus on climate change, it comes at a time of hope for world economies as well. The UK, the last major European nation still in recession is likely to move into growth as the Q4 results are published. Property markets across the globe, with some notable exceptions, seem to be seeing a small turn around in fortunes, and in comparison to December 2008 there is a marked improvement in confidence.

But what does Cop15 mean for property? There is an understanding of a common metric by which to measure energy use in buildings across the globe and there is no doubt governments will go into policy making with a greater understanding of the issues. For the UK and Northern Europe Copenhagen will mean very little due to the advanced nature of their green building and property regulations but for others such as the United States, India, and China policy changes are more likely to arise. We will have to wait and see what materialises.

Strongest U.S. Green Building Laws Pass in NYC

December 17, 2009

Posted by:
Jean Savitsky
Project and Development Services Lead
Energy and Sustainability Services
United States

As New York City Mayor Michael Bloomberg packed his bags for Copenhagen, the City Council gave him a bon voyage gift: a vote to approve his PlaNYC building efficiency legislation. Four separate bills passed with overwhelming support, two of them unanimously. The New York Times and other media noted that the rules as passed were ‘weakened’ after Bloomberg gave in to building owners who argued against the legislation’s most onerous requirement. Even so, the rules that remain are the most stringent in the U.S. by a wide margin.

Washington, D.C. is the only other city that requires all large buildings to disclose their energy efficiency by entering data into ENERGY STAR Portfolio Manager. Other measures are unique to New York, including a new energy code that will apply to existing buildings that renovate; lighting upgrades and sub-metering of large tenant spaces within 15 years; and energy audits and retro-commissioning at all large buildings.

As tough as the legislation may be on some owners, the original proposed rules would have been tougher, requiring owners to follow through on any efficiency measure that energy auditors claimed would pay for itself within five years. That might have forced owners to spend millions of dollars based on someone else’s ROI calculation.

ENERGY STAR participation and sub-metering are low-cost ways to motivate owners and tenants to become more efficient. Whatever other impact they have, the new rules will reduce energy use and greenhouse gases, making New York the greenest city in the country, at least in terms of buildings. And other cities will follow—in fact, an advisory board to San Francisco’s mayor this week recommends some of the same rules New York has just passed.