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Client Alert: Montgomery County Enacts Green Building Legislation
Important Green Building Update for Builders, Developers
November 29, 2006

Today the Montgomery County Council unanimously enacted green building legislation (Bill 17-06). This bill requires that new construction of, and additions, enlargements, and substantial modifications to private multi-family (greater than four stories), commercial buildings, and all County buildings obtain a certain level of “LEED” (Leadership in Energy and Environmental Design) points under the appropriate LEED program (i.e. LEED-New Construction, LEED-Existing Buildings, LEED-Commercial Interiors, etc.) or its equivalent.

Compliance with this requirement will be reviewed at the building permit filing stage and must be verified prior to final use and occupancy permit. The bill will be followed by a detailed set of regulations from the Department of Permitting Service that address implementation and other specifics.

When Will The Legislation Take Effect?

The requirements of the bill will be mandatory for any building permit filed one year after the adoption of executive regulations, but no later than September 1, 2008. The Council has requested draft regulations from the DPS by July 2007 and will seek to adopt regulations by September 2007.

What Buildings or Projects Will Be Affected?

The requirements of the bill will be mandatory for all buildings and projects defined below.

Private Building – All commercial buildings and multifamily residential buildings greater than four stories and 10,000 square feet of gross floor space. 

Additions –For any existing building or buildings that file for a building permit prior to the effective date of the bill (9/1/08), the bill will only apply to future additions that are at least 10,000 sf, AND increase existing building coverage by 100%. For buildings that file for building permits after the effective date, additions to those buildings is also be covered by the bill if they are greater than 10,000 sf. 

Substantial Modifications – Any structural modification which alters more than 50% of the building’s gross floor area. 

County building – any building for which the County finances at least 30%

What LEED Levels Must Be Obtained?

Private buildings must obtain LEED Certified Level (26 points) and County buildings will be required to obtain LEED Certified Level for the first year and LEED Silver Level (32 points) thereafter. The bill allows for flexibility for the regulations to address who is eligible to certify that a building meets these requirements and allows flexibility for using certification programs other than/equivalent to LEED. The regulations will also provide for a waiver process where compliance would be “impractical or unduly burdensome.”

Property Tax Credits For LEED Levels?

There was indication from Council members Floreen and Leventhal that the new Council will follow this bill with an adoption of some form of pending Bill 37-06, which would provide varying levels of property tax credits for buildings that achieve certain LEED-rating levels.

For More Information
Please contact any member of the Linowes and Blocher team if you have questions or would like to be updated on the most current status of this green building legislation. Information specific to this Client Alert was prepared by Joseph P. Lapan