1. 2009 NAA Green Conference & Exposition April 28-29, 2009 Phoenix Convention Center Phoenix, Arizona Carrots and Sticks: Incentives and Mandates for Builders and Developers Mark Polston 28 April 2009

2. 2009 NAA Green Conference & Exposition April 28-29, 2009 Phoenix Convention Center Phoenix, Arizona Ratings Systems LEED National Residential Green Building Standard Green Globes EarthCraft

3. 2009 NAA Green Conference & Exposition April 28-29, 2009 Phoenix Convention Center Phoenix, Arizona Legal Landscape Federal---Mostly incentives (for now) State---Mostly incentives; some requirements Local---Mixed bag: more regulation coming

4. 2009 NAA Green Conference & Exposition April 28-29, 2009 Phoenix Convention Center Phoenix, Arizona Federal Incentives Stimulus bill: – $3.2 billion for energy efficiency improvements—state and local discretion – $2.3 billion for energy-efficient retrofits and renovations in publicly-assisted housing (e.g., Section 8 units) – $4.4 billion for “smart grid” technologies

5. 2009 NAA Green Conference & Exposition April 28-29, 2009 Phoenix Convention Center Phoenix, Arizona Federal Incentives Energy Policy Act: – Tax deduction of $0.60 to $1.80/square foot for installation of energy-efficient systems – Measured by how much energy is saved – Extended to 2013

6. 2009 NAA Green Conference & Exposition April 28-29, 2009 Phoenix Convention Center Phoenix, Arizona State/Local Incentives Financial: – Property tax relief (e.g. Nevada) – Income tax credits or deductions (e.g. Maryland) – Direct grants (mostly local and small) – Reduced plan review fees (e.g. Asheville, NC)

7. 2009 NAA Green Conference & Exposition April 28-29, 2009 Phoenix Convention Center Phoenix, Arizona State/Local Incentives Non-financial incentives – Density bonus – Shorter permitting times – Expedited planning review

8. 2009 NAA Green Conference & Exposition April 28-29, 2009 Phoenix Convention Center Phoenix, Arizona Regulations Mandate LEED or other green building standard in public AND private construction Case study: DC Green Buildings Act (first legislation passed in major U.S. city to mandate green for private construction)

9. 2009 NAA Green Conference & Exposition April 28-29, 2009 Phoenix Convention Center Phoenix, Arizona Regulations Proposals to require labeling of buildings Penalty fees for not committing to construct green (Arlington, VA) Amended building codes with more stringent energy-efficiency requirements (California and others)

10. 2009 NAA Green Conference & Exposition April 28-29, 2009 Phoenix Convention Center Phoenix, Arizona Questions Mark Polston Womble Carlyle Sandridge & Rice, PLLC Washington, DC mpolston@wcsr.com www.wcsr.com