855773667-LEED-v5-O-M-Reference-Guide-Launch-Edition-1 - Page 156

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the EACs for the required duration, with the contractual commitment beginning no later than the project’s reporting period start date. Examples include a minimum three-year contract for renewable power from:

• Tier 1 . Third party-owned on-site renewable energy system

• Tier 2 . Virtual Power Purchase Agreement (VPPA)

• Tier 3 . Green Tariff

For contract durations shorter than three years, prorate the renewable energy across three years. For a one-time bulk purchase of renewable energy, the annual renewable energy quantity allocated to the project is the total purchase quantity divided by three.

For older contracts, only count the remaining time left per the vintage requirements below.

Environmental attributes When procuring off-site electricity, environmental attributes must meet specific requirements for ownership, vintage, and location.

An Energy Attribute Certificate (EAC) is a transferrable certificate, record, or guarantee used to track the environmental attributes for a unit of energy and the rights to those attributes. Examples of EACs include Renewable Energy Certificates (RECs) and Guarantees of Origin (GOs), where one REC or one GO corresponds to one Megawatt-Hour (MWH) of renewable electricity.

OWNERSHIP Ownership of the renewable energy environmental attributes must reside with the LEED O+M project, demonstrated through retirement of the Energy Attribute Certificates (EACs) on behalf of the LEED project.

If the renewable attributes are not retained by the project owner, the renewable project is disqualified from credit compliance. For example, if the project cedes ownership of the RECs from on-site photovoltaics in exchange for a utility incentive, the system is ineligible for credit.

The renewable energy contract shall not permit replacement of EACs from one project with that of a different renewable energy project (referred to as REC Arbitrage) unless the contract specifies that the replacement EACs meet all relevant LEED criteria. For example, the contract shall not allow replacement of Tier 2 EACs with those of an asset older than five years at the time of contract execution.

U.S. Green Building Council LEED v5 Reference Guide for Operations and Maintenance, April 2025 Launch Edition 146