(a) Beginning January 1, 2012, an applicant governed by § 6-1451.03(a) shall provide a financial security, which shall be due prior to receipt of a certificate of occupancy.
(b)(1) The financial security requirement of subsection (a) of this section may be fulfilled by:
(A) Evidence of cash deposited in an escrow account in a financial institution in the District in the name of the licensee and the District;
(B) An irrevocable letter of credit from a financial institution authorized to do business in the District;
(C) A bond secured by the applicant to ensure compliance with this section; or
(D) A binding pledge that within 2 years of receipt of the certificate of occupancy the applicant will fulfill or exceed the current edition of the LEED standard for commercial and institutional buildings at the certified level.
(2)(A) A binding pledge pursuant to paragraph (1)(D) of this subsection shall be recorded as a covenant in the land records of the District between the applicant and the District in a form that is satisfactory to the District’s Attorney General or the Attorney General’s delegate.
(B) The covenant shall bind the applicant and any successors in title to pay any fines levied pursuant to this section.
(c) If, within 2 years of receipt of the certificate of occupancy, the project provides evidence that it has fulfilled or exceeded the current edition of the LEED standard for commercial and institutional buildings at the certified level, a financial security previously provided by the applicant in the form of cash, an irrevocable letter of credit, or a bond shall be returned to the applicant.
(d) If, within 2 years of receipt of the certificate of occupancy, the project does not provide evidence that it has fulfilled or exceeded the current edition of the LEED standard for commercial and institutional buildings at the certified level, the Mayor shall, as applicable, either:
(1) Draw down on a financial security provided in the form of cash, an irrevocable letter of credit, or a bond, in whole, or in part; or
(2) Levy a fine against an applicant that provided a financial security in the form of a binding pledge as set forth in subsection (f) of this subsection.
(e) A financial security in the form of cash, an irrevocable letter of credit, or a bond shall be calculated by square foot as set forth in subsection (f) of this section but shall be discounted by 20% of the amount of the fine described in subsection (f) of this section.
(f) A fine issued pursuant to subsection (d)(2) of this section shall be calculated as follows:
(1) In the amount of $7.50 per square foot of gross floor space if the project is less than 100,000 square feet of gross floor space.
(2) In the amount of $10 per square foot, if the project is at least 100,000 square feet of gross floor space.
(3) Beginning 4 years after receipt of the certificate of occupancy, the applicant shall pay a monthly fine of $0.02 per square foot to the District for failure to provide evidence that it has fulfilled or exceeded either the current edition of the LEED standard for commercial and institutional buildings at the certified level or the current edition of the LEED standard for Existing Buildings: Operations & Maintenance at the certified level. The monthly fines shall accumulate but shall be assessed annually.
(4) The fine described in paragraphs (1) and (2) of this subsection shall not exceed $3 million; provided, that an annual fine issued pursuant to paragraph (3) of this subsection shall not count toward the $3 million limit.
(g) The Mayor, for good cause, may issue time extensions to a project; provided, that the Mayor shall not grant more than 3, one-year extensions.
(h) Fines issued under this section shall be civil penalties.
(i) Substantial improvements shall be subject to the requirements of this section; provided, that only square feet included in a substantial improvement project shall be calculated for the purposes of a fine.
(j) The financial security option provided in subsection (b)(1)(C) of this section shall become effective upon the issuance of rules by the Mayor.
(k) Any payment made to the District for failure to meet the standards required by §§ 6-1451.02 and 6-1451.03 shall be deposited in the Green Building Fund.
