Page 307 - The Green Building Bottom Line The Real Cost of Sustainable Building

THE FINE PRINT: LEGAL ISSUES IN GREEN BUILDING PROJECTS 285

RULES, REGULATIONS, AND OTHER CONTROLS ON TENANT
BEHAVIOR

In the context of a green building, the landlord may have an increased need to regu-
late the tenant’s behavior, depending upon on the nature of the overall design of the
building and the landlord’s goals with respect to energy usage, indoor air quality,
waste reduction, etc., and the lease agreement should reflect this. Examples include
regulation of the types of furniture and equipment a tenant is allowed to bring into and
utilize in the premises, prohibition of smoking in or around the building, and moni-
toring requirements related to indoor air quality issues such as carbon dioxide and
ventilation efficiency. These provisions range from rules and regulations prohibiting
certain noxious uses and activities (including smoking in or around the building), to
limitations on the tenant’s ability to perform any repairs or alterations to the leased
premises without the landlord’s prior consent. A green lease may also include specific
janitorial specifications that define the materials, procedures, and protocols for clean-
ing the building in a sustainable manner.
A green lease may have increased reporting requirements for a tenant. A typical
lease might require a tenant to report to the landlord its gross sales from the premises,
or perhaps provide periodic financial statements on the tenant’s business. A green
lease could also require the tenant to report to the landlord its energy consumption
data, monitor readings related to indoor air quality issues (e.g., carbon monoxide lev-
els and ventilation efficiency), and equipment efficiency. Such requirements in a lease
must be drafted to first require the tenant to collect and maintain such data, as well as
to provide it to the landlord on a periodic basis or upon the landlord’s request. Failure
to do so may result in a tenant default. Obtaining this information could be very help-
ful to the landlord in terms of ensuring that desired indoor air quality standards are
being met, confirming that tenants are complying with energy management programs,
and collecting data about the overall performance and efficiency of the building that
could be used for certification or marketing purposes.

Examples of Green Cleaning Specifications

The following are examples of green cleaning specifications, some or all
which may be included in a green lease:
■ Use only products and equipment considered environmentally safe and
that are phosphate free, non-corrosive, non-flammable, low-VOC emit-
ting, and fully biodegradable.
■ Use only “green” products as defined by Green Seal’s GS-37 standard.
■ Minimize the use of products that release irritating fumes.
■ Use products that are packaged ecologically.
■ Utilize paper products that are 100% recycled content.