California faces unique challenges in maintaining high environmental standards in light of persistent population growth and the subsequent strain on natural resources. In addition, California’s sustained drought over the last few years has amplified the need to introduce new initiatives to ensure environmental sustainability.
CALGreen is the nation’s first compulsory green building code initiative. Effective January 2011, CALGreen required new and renovated buildings in California to meet sustainability and eco-friendly requirements. Since the introduction of CALGreen, buildings in the development stages have been required to meet certain baseline efficiency standards. These standards apply to both commercial and residential building permits. The goal of CALGreen is to reduce greenhouse gas emissions to pre-1990 levels by 2020, which will improve California’s air quality and reduce public energy consumption.
CALGreen currently has two components: mandatory measures and voluntary measures. The mandatory measures stipulate the minimum requirements with which each building is expected to comply. These measures include standards for water consumption, indoor air quality and environmentally friendly building materials. Any building or residential complex under renovation will also have to meet these mandatory requirements. The voluntary measures are additional requirements that aim to increase efficiency throughout affected structures and are beneficial for individuals seeking to comply with regulations that may be enacted at a future date.
The CALGreen initiative mandates field inspections by both state and local building departments. If a property owner is deemed to be in compliance with applicable regulations, the property is designated as CALGreen compliant, thereby avoiding verification by a third party.
This initiative confers new costs on real estate investors and developers, but offers important, long-term benefits to those interested in purchasing real estate in California. These environmental goals make California an attractive location for real estate investment.
As a new or existing real estate developer, it is important to understand the terms of the CALGreen initiative. Failure to meet these requirements could result in not obtaining a permit or operating a building.
If you would like to learn more about CALGreen and how it may affect your future in environmental real estate development, you can contact Shane Coons at 949-333-0900 or visit www.ShaneCoonsLaw.com.