Stephen Del Percio at the Green Real Estate Law Journal wrote an interesting article about environmental objective clauses in leasing agreements. I know what many of you are pondering.  What exactly is an "environmental objective clause?"  Environmental objective clauses are clauses that require both landlord and tenant to operate the demised premises pursuant to a set of very general, aspirational green building objectives.  In essence, these are obligations that both a landlord and new tenant voluntarily become subject to in an effort to aid the environment.

The obligations contained within these new type of agreements cover such areas as (i) direct and indirect energy consumption and greenhouse gas emissions; (ii) water consumption; (iii) the amount of material entering the waste stream; (iv) negative impacts upon the indoor air quality of the Building and the Premises. 

The problem that Mr. Del Percio finds with these agreement is that the vague nature of the language leaves landlords open to possible unexpected liability.  What exactly is excessive water consumption?  If this is not clearly outlined that the tenant may have a suit against a landlord because of using too much water on landscaping.  Or what is an excessive amount of material entering the waste stream?  Will this also cover other tenant lodgings on the same property?

I have to agree that the general nature of these clauses could be a problem, but is not insurmountable.  For example, how many contracts include definitions?  Nearly all.  So, why can't an inclusion of definitions work in this case?  It can.  Also, landlords can use limitation of liability clauses to prevent being overexposed for any litigation from tenants.  This seems to remedy the problems and allow for the continued use of environmental objective clauses.

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I was just lloking through a top 10 list of 2009 articles around franchise opportunites and ran into the attached interview of a Solar Franchise company.  For those looking for careers in Green tech, maybe owning your own business in Green Tech is the answer. There appear to be many of thse types of opportunites out there.

http://www.thefranchisekingblog.com/2009/02/new-solar-energy-franchise-opportunity.html