It's Not Easy Being Green Climate Change, Green Construction ... - AWS

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Presented at ORIMS ‘Melange’ Professional Development Day, March 19, 2013

It’s Not Easy Being Green Climate Change, Green Construction and other Environmental Risks

Adam Chamberlain of the Ontario and Nunavut Bars Borden Ladner Gervais LLP, (Toronto, ON) Email: [email protected] Tel: 416-367-6172

Overview

• Green Construction and related risks (with thanks to my partner, Sharon Vogel of BLG’s Construction Law Group)

• Climate change related risk • A bit on the interaction between climate change and construction

Risk Management

You can run…..

Types of Certification and Rating Systems • LEED Certification • BOMA BESt Certification Program • Green Globes • BREEAM • BuiltGreen Canada

Changing Labels: What Does “Green” Mean to You? Benefits

Costs



Future Savings



Design



Marketing/Good Will



Experts



Value of Property



Materials



Environmental



Certification Fees

Sustainability

Types of Claims in Breach of Contract

• Failure to meet specified energy efficiency standards • Failure to deliver or obtain a promised LEED certification or other third party certification • Breach of implied warranty of fitness and suitability of construction materials

Negligence • To whom is duty owed? • Applicable Standard of Care

Negligent Misrepresentation • “Greenwashing” • Toronto Standard Condominium Corporation No. 1898 v. 743 Queen St. East Toronto Inc.

Insurance Considerations • What insurance products are available to cover against green building risks? • What exclusions are of concern in respect of green building risks?

Legislative Reflections of Environmental Changes

• Federal Sustainable Development Act • Building Codes (e.g. see recent changes to Ontario’s Building Code) • Green Energy Act

Recent Case Examples •

Appeal of Certification • Northland Pines High School



Unhappy Tenants • Riverhouse One Rockefeller Park Condominium



False Advertising • Gifford v. U.S. Green Building Council

Climate Change • Is it happening? • Are people contributing to climate change? • From a business point of view do the answers to these questions matter?

Climate Change Initiatives  International  Government  Regional  Provincial  Municipal / Local

Climate Change Initiatives  Government Initiatives (Federal and Provincial):  Renewable and Clean Energy Supply  Promoting Energy Efficiency and Conservation  Rules for Coal Fired Generation  Carbon Tax

Climate Change Initiatives  Emissions Trading 





The federal Turning the Corner regulatory framework, introduced in 2007, set mandatory targets for industrial emitters to reduce their greenhouse gas emissions In 2008, the federal government committed to implementing a North America-wide cap and trade system for GHGs Hold the Phone!…..things have changed. Federal policy and action in Climate Change and GHG regulation is unlikely any time soon.

Climate Change Initiatives  Emissions Trading 

Then again…..

Climate Change Initiatives  Municipal / local   



Less regulatory teeth, but Closer to the Citizenry Outside the Box thinking required Challenging but can be effective

Climate Change Initiatives  North American Regional Initiatives 

The Western Climate Initiative (WCI) 



5 partners: British Columbia, Manitoba, Ontario, Québec, and California Quebec and California have initiated Cap and Trade in 2013 – we will see how it roles out.

 U.S. only: 

Regional Greenhouse Gas Initiative (RGGI) 

The first market-based regulatory program in the U.S. to reduce GHG emissions – CO2 allowance auctions – Ontario is an observer

NEWS: Iqaluit March 13, 2013 - 6:08 am Sabotage caused Nunavut RCMP building to sink: engineering firm “It’s obvious it was purposefully done"

Thank you Adam Chamberlain [email protected] Sharon Vogel [email protected]