Outline. Enterprise Green Communities (EGC) New Local Laws PERL

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1 HDC s Green Policy

2 Outline Enterprise Green Communities (EGC) New Local Laws PERL

3 HDC, HPD and EGC HDC New Construction Multi-family Rental projects (NC) are required to meet Enterprise Green Communities criteria (EGC), aligned with HPD s green building requirements. Projects undergoing a substantial rehabilitation (SR) through one of HDC s preservation programs shall be required to meet the EGC as well. 3

4 Enterprise Green Communities (EGC) HARLEM RIVER POINT NORTH HPD adopted EGC agency-wide for NC/SR projects and enabled soft phase-in during 2011 HPD and Enterprise have designed an HPD Overlay that bridges 2008 with 2011 criteria

5 EGC for Rehabilitation/Preservation HDC and HPD define substantial rehab as including all three of the following in a scope of work: 1. Replace heating system 2. Work in 75% of the units including work in the kitchen and/or bathroom AND 3. Work on the building envelope such as replace/add roof insulation

6 Smaller-scale Rehab/Preservation Engineers shall reference EGC standards when reviewing proposed scope of work 6

7 Meeting New City Requirements Three recent local laws will have a direct effect on large (or all) buildings: 1. Local Law 43 (all): Upgrade of residual fuel heating systems 2. Local Law 84 (>50,000 sf): Requirement to track annual energy usage 3. Local Law 87 (>50,000 sf): Decennial audits and retro-commissioning to evaluate and tune-up base building systems

8 Local Law 43 Requirement: 1. NEW boilers must burn low sulfur No. 2 oil, natural gas, or fuel of equivalent emissions 2. EXISTING No.6 boilers must convert to No.4 heating oil or to an equivalent cleaner fuel (cleaner than No.4 by 2030) Eligibility: All new and existing boilers When: Enacted July of 2010 and put into effect November of 2010; Owners must convert boilers from No.6 oil to No. 4 oil (or an equivalent cleaner fuel) in order to renew a Certificate to Operate the boiler. Certificates to operate last 3 years. Conversion to No.2 Oil or natural gas is required if a boiler has not been replaced by 2030.

9 Local Law 84 Requirement: Enter buildings annual energy and water usage into EPA Portfolio Manager Tool; data submitted to DOB, fines administered by the Department of Finance; Mayor s OLTPS will be involved in data analysis. Covered: Buildings over 50,000 gsf, or two or more buildings on same lot/ under same condo board, that together are 100,000 gsf; no exceptions for greencertified buildings. When: Annually, starting on May 1, 2011; $500 quarterly fine for non-compliance. How: Options for both commercial and residential spaces*: 1. Request data from tenants 2. Purchase aggregated reports from utility company *For residential data: if options 1 and 2 are not viable, owner must obtain meter data for each energy type for 10% of apartments in each apartment line in the building and use DOB formula to extrapolate. If unable to do this, owner may use a set of default values, which would immediately label building as inefficient.

10 Local Law 87 Requirement: Owners must commission energy use audits and retrocommissioning of building once every ten years; Data submitted to DOB; Final rule was published on Sept 13, Covered: Buildings over 50,000 gross square feet, or two or more buildings on same lot/under same condo board that together are 100,000 gross square feet. When: Beginning in 2013, staggered by last digit of buildings block numbers. How: Hire qualified 1 firms to conduct the audit and retro-commissioning and file an Energy Efficiency Report (EER); audit will identify capital improvements and payback period 2 ; retro-commissioning identifies smaller deficiencies in existing base systems and recommends repairs and operational improvements that must be corrected (and noted on the EER) 1 Qualifications are detailed in LL87 rule 2 Payback period is time it takes to repay capital improvements through resulting energy savings.

11 Local Law 87 (cont.) Failure to submit is a Major (Class 2) violation; penalty of $3,000 in year one, $5,000 each additional year. Exemptions (ie eligible for extensions): Less than 10 yrs old at first due date. Building underwent substantial rehab of base building systems within preceding 10 years Proof of Financial hardship: including those on the Department of Finance s tax lien list, and those exempt from real property taxes under sections 420-a, 420-b, 446 or 462.

12 Program for Energy Retrofit Loans $17.5M available Guideline: up to $2M per project Can be coupled with other financing Cost of capital: approx. 4.0% 12

13 Eligible projects HDC holds the first mortgage and/or project participates in an HPD program Owner pays heat and hot water 15% projected energy savings 13

14 Eligible scope items Energy Audits Fuel conversions Co-gen facilities Heating and cooling systems upgrade or replacement Lighting replacement Ventilation Insulation Building management systems, data acquisition devices/ fault detection systems Remediation work (asbestos, lead) Training on energy systems Note: In unit upgrades only eligible in master metered buildings

15 Requirements 15 ASHRAE Level II Energy Audit Pre-approved auditor Audit identifies potential energy efficiency measures Borrower provides historical energy data Energy Star Portfolio Manager Owner determines project scope LEED and Enterprise Green Communities are not required

16 Operating Savings: Retrofit Case Studies

17 Case Study #1 Household Composition: Multifamily / Senior Housing Building Size: 150,000 sf./ 150 units Primary Energy Conservation Measures: Boiler Upgrade Ventilation improvements ENERGY STAR appliances Whole building airsealing Roof insulation Total Cost (w/o incentives): $821,583 Incentive Program: NYSERDA Multifamily Performance Program (MPP) Incentive payments : $191,000 Annual ElectricSavings: 15% Annual Oil Savings : 32% Annual Cost Savings : $101,000 Payback : 8 years Payback w/ incentives: 5 years 17

18 Case Study #2 Household Composition: Multifamily/Affordable Commercial Building Size: 714,500 sf/ 694 units Primary Energy Conservation Measures: CHP plant and backup generator installation Total Cost (w/o incentives): $1,702,154 Incentive Program: NYSERDA Multifamily Performance Program (MPP) Incentive payments : $1,152,680 Annual Energy Savings: East 22% annual West 16% annual Annual Cost Savings : $276,171 Payback : 6 years Payback w/ incentives: 2 years 18