City of Victoria Sustainable Building Policy Review Private Sector Development

Transcription

1 City of Victoria Sustainable Building Policy Review Private Sector Development October 25, 2007

2 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Executive Summary The City of Victoria has an opportunity to take a leadership role in the field of environmental stewardship and to encourage a market transformation of the development industry by establishing a Green Buildings Policy that is robust and leading-edge. As such, the City contracted Stantec Consulting to undertake a study of potential regulatory and policy changes to the City s current building regulations and policies in order to support a Green Building Strategy for the City. This report provides an overview of current green building practice in local, national and international contexts and comments on the direction of the building industry with respect to high performance development and associated performance indicators and rating systems. In addition, an overview of the current green building context in the capital and surrounding regions, a review of the current status of the City s Official Community Plan, bylaws and regulations with respect to green building, and key indicators that can form the basis for a comprehensive Green Building Policy are presented. The results of the study concluded that as the buildings industry adapts rapidly to growing public awareness of environmental issues, the minimum acceptable standards for facility development and performance from an eco-friendly standpoint continue to rise. Currently, there are dozens of high performance projects underway in the Capital Regional District, with several already Leadership in Energy and Environmental Design (LEED ) certified, indicating the demand for green building by developers, owners and occupants. As such, recommendations include that where the City is in a position to negotiate a LEED standard for private developments, a minimum standard of LEED Silver should be implemented for all new buildings over 500 m 2, with a goal of LEED Gold. Further, we recommend inclusion of a number of mandatory high performance building design requirements, performance trade-off design options for projects seeking variances or rezonings, and voluntary design-based green building incentives, as noted in this report. Communication of these requirements and incentives to owners and developers may be undertaken through updates to the existing website, and training workshops may be coordinated with appropriate organizations as necessary. It is important that the City is proactive in order to stay relevant, and to minimize required updates to the policy as the industry continuously evolves. Specific goals and targets should be clearly communicated by the City, with regular review of these goals and targets to ensure that the policy remains current. These recommendations are in line with the policy recently adopted by the City of Victoria for civic buildings, reflect policies enforced by other local municipalities and regions, and are intended to minimize additional workload requirements by current City staff, while strengthening the City s sustainability vision, mission and strategic plan. rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc E.1

3 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Table of Contents EXECUTIVE SUMMARY E INTRODUCTION SCOPE GREEN BUILDING LOCALLY, NATIONALLY AND INTERNATIONALLY OVERVIEW DIRECTION OF THE BUILDING INDUSTRY ASHRAE Standard WHY LEED? BENEFITS OF GREEN BUILDING Benefits for municipalities Benefits for owners and developers REPRESENTATIVE GREEN BUILDING POLICIES City of Vancouver City of Seattle District of Saanich LOCAL HIGH PERFORMANCE PROJECTS CAPITAL REGIONAL DISTRICT ENERGY USAGE BY BUILDINGS COMMUNICATION WITH LOCAL BUILDING INDUSTRY REVIEW OF BYLAWS AND OFFICIAL COMMUNITY PLAN INCLUDING PROPOSED SUSTAINABILITY MEASURES LEGISLATIVE AUTHORITY CONTEXT Regional Context REGULATIONS AND BYLAWS Official Community Plan Zoning, Building and Storm Water (05-80) Bylaws Proposed Sustainability Measures Overview Voluntary Measures Mandatory Requirements Performance Trade-off Options GREEN BUILDING POLICY RECOMMENDATIONS ANTICIPATED RESOURCE REQUIREMENTS RATED ON THE MATRIX REFERENCES AND RESOURCES APPENDICES APPENDIX A DESIGN GUIDELINES (MATRICES): VOLUNTARY MEASURES, PERFORMANCE TRADE-OFF OPTIONS, AND MANDATORY REQUIREMENTS APPENDIX B SHELTAIR REPORT APPENDIX C CITY OF SEATTLE DENSITY BONUS BROCHURE rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc i

4 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW 1.0 Introduction 1.1 SCOPE The City of Victoria is committed to reviewing new land use proposals from a triple bottom line perspective including environmental, economic, and social criteria. As part of this commitment, the City is making ongoing improvements to its building regulations and policies to create more environmentally sound developments. To this end, the City has contracted Stantec to provide program planning directions for Council with respect to potential regulatory and policy changes to the City s current building regulations and policies in order to support a Green Building Strategy for the City. As per the City of Victoria Request for Proposal No this report provides an overview of the current green building context in the capital and surrounding regions, a review of the current status of the City s Official Community Plan, bylaws and regulations with respect to green building, and key indicators that can form the basis for a comprehensive Green Building Policy. The review provides the background and context for pursuing a green building policy in the City. The regulatory context is presented followed by an analysis and recommendations. The following regulatory documents were reviewed: Official Community Plan, Chapter 7 Zoning Bylaw (intro, general regulations and Schedule C) Building Bylaw Site development regulations and code of practice (incl Storm Water Bylaw) In addition, a review of Green Building and related policies in surrounding regional municipalities was also conducted in order to ensure the City accounts for, incorporates and responds to local and regional efforts to date. This study included a review of the green building and sustainability initiatives in the built environment in: District Municipality of Saanich The City of Vancouver The City of Seattle Additional recommendations are presented for voluntary, mandatory, and performance trade-off design measures. The scope of this report deals with building regulations and policies. While Green Building policy forms a critical element of the sustainability equation, a Triple Bottom Line approach inherently requires holistic planning that crosses disciplines and subject areas. Therefore, many other policies and plans need to work in tandem with the Green Building policy to ensure gains rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 1.1

5 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Introduction October 2007 made in site and building design are not mitigated by practices that contradict broad sustainability objectives. Central to this approach is planning based on Smart Growth principles. Some of the fundamental Smart Growth principles include providing a range of housing choices, creating walkable neighbourhoods, preserving open spaces, mixing land uses and providing a variety of transportation options. In lieu of an overall sustainability strategy, many of the Smart Growth principles are incorporated through plans such as the Official Community Plan, the Housing Affordability Strategy, the Greenways Plan and Bicycle Master Plan. See reports under separate cover for Civic Green Building Policy and Sustainable Design Website that complete the requirements for this proposal. 1.2 rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc

6 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW 2.0 Green Building Locally, Nationally and Internationally 2.1 OVERVIEW Green or high performance buildings are a critical component of municipal programs in support of sustainability. Not only do green buildings significantly reduce environmental impacts on local infrastructure, land, and resources, but they help mitigate global issues such as climate change and large scale urbanization. The practice of green building is gaining momentum rapidly for a variety of building owners. From large-scale corporate projects to smaller residential buildings, green strategies are becoming more common in order to reap economic, health and environmental benefits. Municipal support of sustainable buildings can help reduce the impact on climate change and Greenhouse Gas emissions. In fact, many cities and municipalities now require new construction to meet minimum green building standards. For example, Calgary was the first city in Canada to adopt a green building policy for civic facilities, and since then, many have followed including the Cities of Vancouver, Richmond, Ottawa, Waterloo, and York Region. In addition, many municipalities have now adopted green building policies for private sector development. Local examples include the City of Port Coquitlam, the City of North Vancouver, the Municipality of Saanich, the City of Vancouver and the City of Seattle. The growing adoption of green building policies and programs is a sign that the costs and benefits of these practices are becoming better understood. Green buildings are now seen as a practical approach to demonstrating sustainability on the ground. These strategies are being applied to existing building stock as well as new construction. Since the quantity of existing buildings far outweighs the number of new construction projects, existing buildings will contribute most significantly to resource consumption and as such, greening operations and maintenance practices is critical to reducing the overall impact of buildings. Sustainable building can be defined as: designing, building, operating and maintaining buildings to incorporate energy efficiency, water conservation, waste minimization, pollution prevention, resource-efficient materials, and indoor air quality, while being mindful of the triple bottom line of environmental, social and economic factors. rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 2.1

7 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Green Building Locally, Nationally and Internationally October DIRECTION OF THE BUILDING INDUSTRY As noted previously, many regions and municipalities are now requiring new construction to meet minimum green building standards. Local governments are recognizing the importance of adopting green building practices in order to meet their sustainability mandates (as driven by their citizens) as well as to relieve impact on infrastructure. Both new construction and existing buildings contribute to resource consumption and should be addressed in the formulation of a sustainability policy. Vancouver Island Technology Park On a larger scale, national and international endeavours to green the building industry are prevalent. For example, Public Works & Government Services Canada has committed to achieving LEED Gold certification for all its new construction projects over $10 million. The provinces of Alberta and Manitoba have adopted LEED Silver certification for all their new construction projects. As of October 2006, 310 buildings are registered for LEED in Canada, equaling approximately 32,000,000 m 2. An estimated 20% of these buildings were constructed by municipalities ASHRAE Standard 189 The American Society for Heating, Refrigeration and Air Conditioning (ASHRAE) is the governing body that establishes design practice standards for mechanical building engineers in the United States and Canada. ASHRAE has just released a draft version of Standard 189, Standard for the Design of High-Performance Green Buildings Except Low-Rise Residential Buildings, to provide minimum requirements for the design of sustainable buildings to balance environmental responsibility, resource efficiency, occupant comfort and well-being, and community sensitivity. Using the United States Green Building Council s (USGBC) LEED Green Building Rating System, which addresses the top 25% of building practice, as a key resource, Standard 189P provides a baseline that will drive green building into mainstream building practices. The new standard will apply to new commercial buildings and major renovation projects, addressing sustainable sites, water use efficiency, energy efficiency, a building s impact on the atmosphere, materials and resources, and indoor environmental quality. Standard 189P will be an ANSI-accredited standard that can be incorporated into building code. It is intended that the standard will eventually become a prerequisite under LEED. It is expected that this will become the minimum requirement for responsible construction in most municipalities, and can be considered approximately equivalent to a rating of LEED Silver. 2.2 rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc

8 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Green Building Locally, Nationally and Internationally October WHY LEED? The USGBC and CaGBC have a significant foothold in the North American green building market with the LEED rating systems. LEED was created to establish a common standard of measurement for what constitutes a green building, and the rating systems are developed through open, consensus-based processes in volunteer committees respresenting a crosssection of the design community. LEED evaluates buildings in five areas: Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources and Indoor Environmental Quality. Within these credit areas, points are available and depending on the number of points a project earns determines the level of certification the building will be awarded. There are four potential levels of certification: Certified, Silver, Gold and Platinum. LEED is the most popular voluntary certification system used in North America for commercial construction, for a variety of reasons, including political influence, momentum, well-developed documentation, third-party validation, and simple design guidelines through a clear checkliststyle of credits which allow for design flexibility. Various LEED systems are available, including New Construction, Commercial Interiors, Core & Shell, Existing Buildings, Homes (pilot), Neighborhood Development (pilot), Schools, Retail, and Campus. LEED for Healthcare and LEED for Labs are currently under development. As of September 2007, there are around 8000 LEED registered commercial projects and 1000 LEED certified commercial projects worldwide, more than any other high performance building rating system. In North America, more than 100 municipalities and regions as well as 25 states and provinces have adopted LEED in some form as part of their green building policies for public and/or private development. This includes the civic policy recently adopted by the City of Victoria, which established LEED Silver as the minimum requirement for all new public buildings. The minimum standard is generally LEED Silver, and in some cases, LEED Gold or equivalent has been established as a requirement. This is reflective of the direction of the industry, including the introduction of the new ASHRAE standard 189, which will establish a baseline equivalent to LEED Silver for new construction. In summary, the industry is moving quickly and LEED Silver will likely become the industry standard; in order to remain leaders in sustainability and to ensure that policies continue to be relevant, municipalities must set aggressive targets in their sustainable building policies. 2.4 BENEFITS OF GREEN BUILDING There are numerous benefits of constructing high performance buildings and implementing green building policies, both for municipalities and for owners/developers. These benefits should be communicated clearly to all stakeholders to encourage green building activities. rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 2.3

9 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Green Building Locally, Nationally and Internationally October Benefits for municipalities The key benefits for local government include: Competitiveness and economic development A local market transformation towards sustainability makes a municipality more marketable, attracts superior workforce, and generates employment. Reduced infrastructure costs High performance buildings consume less energy and water, put less of a strain on overburdened municipal Parkside Resort Roof Garden infrastructure systems, and can reduce the requirements for additional infrastructure development as the community grows. Promote & support market transformation As the number of new high performance buildings increases, the demand for green will also increase as the citizens become more knowledgeable. Demonstrate leadership The municipality can serve as a model to its residents, by addressing concerns of energy and water shortages and taking steps to mitigate negative outcomes. This is especially important for regions who have already advertised sustainability goals and mission statements. Support environmental stewardship Show residents how to reduce their environmental footprints through leading by example. Local Education & Awareness Through application of new bylaws or processes, builders, developers, designers, and construction managers will gain increased knowledge of sustainable building. Improve the quality of life Reduce air pollution and noise pollution, develop greenways and pedestrian-friendly areas, and improve the daily experience for visitors and residents. 2.4 rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc

10 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Green Building Locally, Nationally and Internationally October Benefits for owners and developers In addition to the obvious health and social benefits of green design, there are numerous advantages to building owners, developers and occupants. Contrary to popular belief, green building may not always cost more. If it does, a price premium of 1-3% can be expected to pay back over time, and provide the following benefits: Increased Property Value High performance buildings can yield increased value to the owner. A study of eleven green buildings in the U.S. and Canada determined that a "green" designation can increase a building's market value as assessed by appraisers and investors (reference: Green Value: Green Buildings, Growing Assets - from City of Seattle Green Building website). Increased Return on Investment Initial investments in green designs can yield financial paybacks over the life of the building through lowered utility bills and reduced operating and maintenance costs. A 2003 California report analyzed both first costs and 20 year operational costs and savings of 30 completed LEED projects. The additional first cost averaged 2%, or $3.00-$5.00/square foot, while the total 20 year net present value of improvements attributed to energy, emissions, water, waste and commissioning was $11.98/ft 2 (reference: The Costs and Financial Benefits of Green Buildings, prepared for California s Sustainable Building Taskforce from City of Seattle Green Building website). Enhanced Occupant Health and Well-being Occupant health and overall comfort can be improved through providing access to daylight and fresh air, and an environment free of toxins and irritants. There is an associated financial benefit to health and productivity in terms of reduced absenteeism and lower health costs. When the value of improved tenant health and productivity is incorporated, the 20 year net present value for LEED Certified and Silver buildings is $48.87, and $67.31/ft 2 for Gold and Platinum (reference: The Costs and Financial Benefits of Green Buildings, prepared for California s Sustainable Building Taskforce from City of Seattle Green Building website). Increased Occupant Productivity Fresh air and daylighting has been shown to improve occupant productivity, and poor indoor environmental quality can have a demonstrable negative impact. The quality of light and air in a workspace can affect worker productivity by up to 20% either positively or negatively (reference: The Heschong-Mahone Group from City of Seattle Green Building website). rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 2.5

11 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Green Building Locally, Nationally and Internationally October 2007 Increased Sales and Leasing Potential Green building features can help with leasing space quickly, even in a renters market. For example, the LEED Gold Ecotrust Jean Vollum Natural Capital Center in Portland, Oregon, is 100% leased, although there is a growing vacancy rate in Portland. Tenants are attracted to the space for its numerous benefits, including high visibility in the sustainable community and access to green resources. Another Portland project, the Brewery Blocks, a 500,000 square foot high performance mixed-use project, was 85% leased at higher than market rates in one year, in the same depressed market (reference: BuildGreenNW). Stay Ahead of the Competition Green building is rapidly becoming the standard, and the owners and developers who become involved as soon as possible will retain an edge over their competitors. 2.5 REPRESENTATIVE GREEN BUILDING POLICIES Several local municipalities have drafted green building policies and strategies in support of sustainable development. These policies apply to municipal facilities and to private developments as noted. Applicable items from these policies should be implemented in Victoria, to take advantage of efforts that have already been undertaken by other civic groups. A summary of the key components of the major applicable policies are indicated below. The City of Victoria s policies relating to its own facilities have been reviewed in a separate report provided to staff. Other local activities in addition to the items listed further below include: District of Salmon Arm s inclusion of voluntary sustainable design measures in the OCP City of Richmond s LEED Silver requirement for buildings over 20,000 ft 2 (LEED Gold encouraged) City of Portland s extensive city-wide green building program, including rating systems, pilot projects, design guideline brochures, incentive programs and public education Various municipalities: sustainable building pilot projects through grants and government funding City of Vancouver Vancouver s policy was established in 2004 and according to their annual reports, has been successful to date. The City of Vancouver has created their own rating system based on LEED, and is providing in-house enforcement and assessment, which is beyond the scope of Victoria s resource capabilities at this time. Primary policy measures include: Applies to all buildings over 600m 2 Private buildings must comply with their in-house Green Building standard, which is similar to LEED Gold but adapted to be specific to the City of Vancouver Civic buildings must achieve LEED Gold 2.6 rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc

12 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Green Building Locally, Nationally and Internationally October City of Seattle Seattle established one of the first green building policies in the United States in 2000, and continues to be a leader in sustainability. They have focused their policy on civic projects but also address private development: Applies to buildings over 5000 ft 2 (600 m 2 ) Density bonus for private development; penalties for failing to meet LEED Silver (refer to Appendix C) City of Seattle building code is more aggressive than the Washington codes Civic buildings must achieve LEED Silver District of Saanich Saanich has demonstrated strong sustainable leadership since 2005, with a focus on low density residential. Their proximity to Victoria makes them a good model for policy creation as core municipalities strive to create consistency and standardization in their regulatory framework: Applies to buildings over 600 m 2 (this may have recently been changed to 1000 m 2 ) Award and incentive programs for green construction in private sector Civic buildings must achieve LEED Silver, with a goal of Gold Implementation of a Sustainability Statement Guidelines for Rezoning and Development Permit applications 2.6 LOCAL HIGH PERFORMANCE PROJECTS At the time of writing there are close to twenty LEED registered projects either completed, under construction or in the planning stages within the region. The projects listed below provide a sampling of LEED projects in the area - the majority constructed by the public sector. Builders must first register with the Canadian Green Building Council to achieve a certain level of certification. Targeted LEED levels for projects registered, but still awaiting official certification because they are not yet constructed, are noted below where applicable. Operation Centre Gulf Islands National Park Reserve Sidney, BC first LEED Platinum in Canada Capital Regional District Headquarters (LEED Gold) Burnside Gorge Community Centre (under construction) LEED registered Municipal House (LEED registered)) Vancouver Island Technology Park LEED Gold, new expansion also targeting LEED rating Parkside Resort & Spa Targeting LEED Platinum Dockside Phases 1, 2 and 3 targeting LEED Platinum goal is to be first Platinum community in North America; of special interest is the Sustainability Centre described below rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 2.7

13 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Green Building Locally, Nationally and Internationally October 2007 South Circle (2960 Jutland Road) LEED -CI (Commercial Interior) Gold targeted under USGBC pilot program Coast Capital Savings Credit Union at Upper Harbour Place (645 Tyee Road) LEED - CI (Commercial Interior) Certified University of Victoria (various projects) LEED Registered Radius, 755 Caledonia LEED Registered Parkside Resort & Spa, Humboldt Street LEED Registered Dockside, Victoria BC Victoria Sustainability Centre (part of the Dockside commitment) The Sustainability Centre will be an innovative and dynamic, state-of-the-art green building that provides ecologically and socially responsible working space for a range of organizations. It will be a hub of learning, innovation, collaboration and action on social, economic and environmental sustainability. More details about the Sustainability Centre can be found at: CAPITAL REGIONAL DISTRICT ENERGY USAGE BY BUILDINGS The 2004 CRD report Greenhouse Gas and Energy Use Inventory for the Capital Region provides some benchmarks by which to evaluate future performance of buildings in terms of energy consumption. Based on the information in the 2004 report, buildings comprise the largest percentage (64%) of energy consumption in the CRD. This translates to 20.6 million GJ of energy consumed annually by the entire community (for buildings including residential), or 59 GJ/person/year. As a basis for comparison of future energy efficiency measures in civic buildings, a study of 45 municipal buildings in the CRD in 2003 indicated an average annual energy use of MJ/square foot. Of the buildings evaluated, this energy consumption was almost equally divided between electricity and natural gas. 2.8 rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc

14 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Green Building Locally, Nationally and Internationally October COMMUNICATION WITH LOCAL BUILDING INDUSTRY In order to encourage green building, municipalities should maintain open lines of communication with local building owners and developers. To facilitate relationships, resources should be made available, such as a webpage of green building links, coordination of technical classes and seminars with local utilities or other potential course providers, and advertisement of any learning opportunities or applicable incentive programs. As an additional means of encouraging high performance building design and development, the City of Victoria should publicly recognize excellence in green developments, to provide visibility and publicity as a tribute to the owners/developers undertaking advanced building design initiatives. rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 2.9

15 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW 3.0 Review of Bylaws and Official Community Plan including Proposed Sustainability Measures 3.1 LEGISLATIVE AUTHORITY The ability of municipal governments to affect the energy efficiency of new buildings through regulatory measures such as building standards and bylaws is limited by Section 9 of the Community Charter and the Buildings and Other Structures Bylaws Regulation. The latter regulation provides that any bylaws that establish technical building standards that are different from the standards established by the BC Building Code require approval by the Minister (Sheltair, 2006). With respect to the provincial building code, the Office of Housing and Construction Standards is the lead agency on development and implementation of a green building code. The February 2007 Throne Speech announced the development of a unified BC Green Building Code by As such, the provincial regulations will foster and support more sustainable development. In light of these limitations and changes, we have provided recommendations for policy-based design standards on three levels: mandatory requirements, performance trade-off options, and voluntary measures. Recommended changes that would otherwise result in revisions to technical building standards have been designated as voluntary measures in this report, to avoid an additional provincial approval step; items that do not affect the building code are indicated as mandatory requirements or as performance trade-off options. However changes to the provincial building code (Green Building Code) may provide opportunity for the City of Victoria to endorse higher standards and should be reviewed as details of the Green Building Code become available. The recommended non-mandatory building measures outlined in this report are to be implemented at the discretion of the developer, and the City will not accept liability for any elective strategies employed in new building projects. 3.2 CONTEXT Regional Context The City of Victoria is situated within an advanced regional green building market. Vancouver Island is already home to several very successful high performance and innovative green construction projects initiated by the private sector. In addition, surrounding municipalities have developed policies and programs that encourage and support green development. Saanich has demonstrated strong sustainable leadership by developing incentive and award programs for green construction in the private sector, as well as requiring a minimum LEED Silver/Gold in new civic buildings since rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 3.1

16 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Review of Bylaws and Official Community Plan including Proposed Sustainability Measures October 2007 Their focus has been on the single family residential sector due to the types of buildings typically constructed in Saanich, rather than the primarily multi-family condominium projects that occur in the City of Victoria. A continued commitment to the Sustainable Steps Towards a Greener Saanich program has been critical in their success to date and is necessary to maintain momentum. In addition, Saanich has designed their green building programs to complement other initiatives in the region and the province such as the Capital Regional District s Community Energy Plan, and the BC Hydro Community Challenge. Of all the local governments undertaking green initiatives, Saanich is the best parallel to the City of Victoria in terms of political and geographic proximity, and their groundwork in policy development should be considered by the City wherever possible, rather than reinventing the wheel. However, the different construction market in Victoria would require policies and approaches not necessarily contemplated by Saanich. 3.3 REGULATIONS AND BYLAWS We compared and contrasted the existing regulatory framework with alternative policy approaches, regulatory structures, and other regulatory tools, and strategies, in order to formulate a set of recommendations that would be consistent with these reference points. Recommended voluntary, mandatory and performance trade-off measures are noted in the matrices in Appendix A. Some of the listed strategies can be considered as either a regulatory measure or a bonusable item. Note that if a strategy becomes mandatory, it must be removed from consideration as bonusable. The measures follow the five key performance areas of human and environmental health, as reference in LEED : Sustainable sites Water efficiency Energy efficiency Materials and resources Indoor environmental quality 3.2 rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc

17 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Review of Bylaws and Official Community Plan including Proposed Sustainability Measures October 2007 Note that LEED has another category, Innovation and Design Process that has not been captured in these five key performance areas since it is a catchall category, which is not specific, and therefore difficult to capture within regulations. Efforts requiring City of Victoria resources to implement these changes are indicated in the columns noted Mechanism, Implementation Strategy and Cost and Impact. Some of the items noted in the Mechanism column may necessitate changes to Bylaws through the addition of text or revision of existing wording, and any required official approvals to implement. Generally, the items noted in Implementation Strategy are intended to be reference material for project teams and developers, and the legwork required by the City of Victoria would be in the creation of a comprehensive website, complete with links and relevant design information in order to encourage high performance design. Voluntary, mandatory and performance trade-off items will likely require the addition of line items to existing permit checklists (if not implicit through staff document reviews to ensure bylaw compliance); in any case, a summary list of changes will need to be prepared to ease transition, using these matrices as the primary reference point. A summary of the resource or financial load of each item is outlined in the Cost and Impact column, which also includes potential effects on developers. All design measures are intended to increase the project s overall degree of sustainability. However, the analysis included in Appendix A makes specific reference to the level of payback in relation to the amount of effort or expense required to implement the sustainable design measure, using an informal review of the triple bottom line. Additionally, the benefit varies between stakeholders (developer, City, community, owners/occupants), depending on the specific measure Official Community Plan The City of Victoria s Official Community Plan was reviewed with particular reference to Chapter 7, Toward an Environmentally Sound Community. The OCP is comprehensive and certainly establishes the City as one committed to the principles of sustainability, as is evident throughout the document. In a separate policy document, the City may wish to consider incorporating specific targets and goals for reducing energy and water consumption, waste generation and improving air quality. These targets should be developed within any existing commitments to reductions such as the Community Energy Plan facilitated through the Capital Regional District. Setting targets establishes a metric for comparison and measurement over time, and encourages implementation of additional voluntary activities in order to meet goals Zoning, Building and Storm Water (05-80) Bylaws In general, the bylaws are amenable to revisions that would incorporate sustainable practices. Recommendations for changes or additions to the bylaws are noted in the attached spreadsheets, which identify proposed voluntary, mandatory, and performance trade-off design measures. Voluntary measures are those items supplemental to or rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 3.3

18 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Review of Bylaws and Official Community Plan including Proposed Sustainability Measures October 2007 exceeding code standards, which would necessitate obtaining approval for exceptions to the building code, so at this time have not been noted as mandatory. In a similar fashion to several of the surrounding regions as well as other cities, these measures could be outlined in a Permit Checklist. While we recognize that the City does not want to significantly increase the amount of paperwork for developers or City employees, there is a benefit to having a prescriptive approach for mandatory measures and/or a shopping list for voluntary measures available to design teams. The checklist would be completed at the time of Development Permit submission, Development Variance Permit submission or Rezoning application. Commitments to achieve particular voluntary measures could yield a zoning variance or other benefit for the developer. The analysis determined that some of the proposed strategies demonstrate benefits in a variety of performance areas. For example, a reduction in the amount of hard/concrete surfaces on site, which would increase sustainability City-wide, could be addressed by an encompassing landscape bylaw Proposed Sustainability Measures Overview The emphasis in the following measures is on water conservation and energy efficiency, which can both significantly affect future infrastructure requirements in the City of Victoria. Water conservation and energy efficiency are achievable through a variety of different strategies, making them attractive targets for increasing building performance Voluntary Measures Recognizing that making bylaw changes that would affect the technical requirements of the building code would require approval through provincial authorities, the voluntary measures are those which can be encouraged through other means. Including information and links on the website to all available funding and incentive programs will encourage builders to undertake voluntary sustainability actions. Refer to items as noted in Appendix A for specific recommendations Mandatory Requirements Changes to zoning, building and storm water bylaws and policy documents may be required in order to incorporate the mandatory requirements outlined in the attached matrix. The list of mandatory requirements is intended to include only those items that will not affect the technical components of the building code and therefore not require approval through provincial authorities. These items would be required design elements, verified through additions to the existing permit checklists and/or additional means as noted. 3.4 rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc

19 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Review of Bylaws and Official Community Plan including Proposed Sustainability Measures October 2007 Refer to items as noted in Appendix A for specific recommendations Performance Trade-off Options A variety of elements may be considered as performance trade-off options for developers who are asking for exceptions variances or rezonings. Requests for variances will be reviewed with reference to the items outlined in the attached matrix. Note that these trade-off options include items that will not affect the technical requirements of the building code and therefore not require approval through provincial authorities. Refer to items as noted in Appendix A for specific recommendations. rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 3.5

20 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW 4.0 Green Building Policy The City of Victoria s vision is to be the most liveable city in Canada, with the mission to enhance the vitality of the region through exceptional leadership and stewardship of our cultural, social, economic and environmental assets. The corporate Strategic Plan (2007 to 2009) has as one of its objectives: The environment is to be sustained and enhanced through sound leadership and stewardship of natural resources. The guiding principles of the City of Victoria Green Building policy are: The City of Victoria will demonstrate both leadership and due diligence in environmental, social and economic stewardship in building projects. The key initiatives will aim at energy and water conservation. The City will lead by example. A Green Building policy for Civic Facilities has been endorsed by Council. Encourage and inform the building industry of green building technology and opportunities and recognize excellence in green developments. Increase voluntary reporting measures Burnside Gorge Community Centre Green Roof for developers on green building features. Create a framework for design-based incentives and mandatory requirements requiring a higher level of sustainability for new private construction. Learn from the best practices in other communities. Work cooperatively with other jurisdictions to promote green building design and practices in a consistent way in the region. rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 4.1

21 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW 5.0 Recommendations As required by the project terms of reference, the recommendations that follow are: Consistent with enabling legislation e.g. Local Government Act Consistent with the City s Official Community Plan (OCP) Consistent with basic direction of other local governments within the CRD The recommendations endeavour to minimize additional staff resources; however, it should be noted that if a serious commitment to achieving proactive sustainability goals is made, a coordinated approach will need to be developed, which may require dedicated staff with a clear mandate. General recommendations: 1. Adopt the guiding principles for the formation of a comprehensive Green Buildings Policy. 2. Define and document overarching sustainability goals (such as GHG reductions, water conservation, and waste diversion) to inform Green Building Policy. 3. Set specific quantifiable and measurable green building targets toward achieving these goals (such as new buildings must have carbon-neutral operating energy by 2030 per City of Vancouver). 4. Commit to a review of goals, opportunities and targets (realize that strategies, technologies and regulations will be constantly evolving and City must keep up to stay relevant and make a significant impact). Have periodic monitoring on progress and success; annual review is recommended. 5. Work toward development of a comprehensive green building policy for private projects, using lessons learned and standards from civic buildings policy This should be reviewed in light of opportunities provided by the proposed provincial Green Building Code. 6. With reference to Appendix A, the following are recommended: For voluntary measures contained in Appendix A, create a checklist as a first measure and update information and links on website. Other guidelines to be implemented as resources allow. For mandatory measures within City regulations, consider implementation of a landscape bylaw that would address a number of sustainability issues. Other changes to regulations to be implemented as resources allow. City must be vigilant in reviewing and reacting to upcoming changes by provincial government. For performance trade-off options, the City should develop a density bonus policy, which embraces sustainable features based on the guidelines noted here. For example, the City of Seattle has a similar program in place as noted in Appendix C. 7. Create opportunities for engagement with the development community. Support via website, training and partnership. Support via website, training and partnership with builders, developers and development agencies. 8. Include information and links on website to any available incentive programs to encourage implementation of voluntary measures 9. Provide and advertise training opportunities, both internally and externally, as budget permits, or through joint ventures with local utilities or sustainable advocacy groups. rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 5.1

22 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW Recommendations October Examine opportunities for grants from federal/provincial government groups to initiate the program could pay for a temporary position to kick-start the process. 11. Refer to Sheltair Report Opportunities for Local Government Action on Energy Efficiency in New Buildings Parts 1 and 2, included in Appendix B. This report has excellent examples and decision making flowcharts for municipal governments. 12. Encourage the Province of British Columbia to develop, in a timely manner, a Provincial Green Building Code. 5.1 ANTICIPATED RESOURCE REQUIREMENTS RATED ON THE MATRIX The majority of the recommendations will require some additional workload for City staff, and may necessitate a review of work flow and processing flows. There are some items that will necessitate a greater effort and budget (note that upgrades and regular monitoring of existing buildings have not been included here): Creation of specific targets, e.g., energy efficiency, water consumption, waste diversion would involve a major work item and outside jurisdictions Updating the Official Community Plan drafting, public consultation and obtaining approval Revisions to bylaws of mandatory requirements drafting, public consultaton and obtaining approval Preparing memos for project teams outlining bylaw changes for circulation and posting on website Training plans/permit reviewers to ensure compliance with changes Website architecture and content initial construction Website maintenance low effort, primarily links or new project data Acquisition of website reference material ( design guidelines, as well as incentive and grant programs) for project teams interested in pursuing voluntary measures. This is a larger-scale activity and should probably be outsourced, if budgets permit Regular measurement and monitoring, and preparation of reports Advertising and hosting of training events. Can be done in cooperation with other agencies/groups. Communication of sustainability goals and targets, along with new requirements, to citizens and developers 5.2 rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc

23 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW 6.0 References and Resources Opportunities for local government action on energy efficient efficiency in new buildings: Energy Efficient Buildings: A Plan for BC Ministry of Energy, Mines, and Petroleum Resources: Seattle s Green Home Remodel Guides: es City of Seattle Implement online tool: USGBC and CaGBC (LEED ): and City of Seattle: District of Saanich: City of Vancouver: ASHRAE: Sustainable Industries Journal: Capital Regional District Greenhouse Gas and Energy Use Inventory for the Capital Region 2004: The Sheltair Group report Opportunities for Local Government Action on Energy Efficiency in New Buildings Parts 1 and 2, included here in Appendix B. rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 6.1

24 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW 7.0 Appendices 7.1 APPENDIX A DESIGN GUIDELINES (MATRICES): VOLUNTARY MEASURES, PERFORMANCE TRADE-OFF OPTIONS, AND MANDATORY REQUIREMENTS 7.2 APPENDIX B SHELTAIR REPORT 7.3 APPENDIX C CITY OF SEATTLE DENSITY BONUS BROCHURE rh v:\1157\active\ \4_report\2007_oct_24 final report\sustainability report 25oct07.doc 7.1

25 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW PRIVATE SECTOR DEVELOPMENT APPENDIX A Design Guidelines (Matrices)

26 Mandatory Requirements within City Regulations Note: It is the intent that these items will not affect the technical requirements of the building code and therefore not require approval through provincial authorities. All rezoning and development permit applications to provide a checklist outlining sustainability initiatives based on performance areas SUSTAINABLE SITES Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact S.1 Storm water management - during construction S.2 Storm water management - post construction Improve storm water quality and reduce storm water discharge during construction Improve storm water quality over life cycle of building Code of Practice in place (Storm Water Bylaw) for quality control Bylaw enacted - fines in place for noncompliance Code of Practice in place (Storm Bylaw enacted - fines in place for noncompliance Water Bylaw) for parking lots in excess of ten spaces and industry specifics Any land alteration activity be subject Cost to City to enforce noncompliance. Cost minimal to to permit processing - most practical to be tied into building permit when developer as part of site preparation applicable work. Information is available on web site. Make information available on a wider basis. Cost to City to enforce noncompliance. Resources in place. S.3 Storm water management - post construction S.4 Storm water management - post construction Improve storm water quality and Reduce impervious surfaces. Use reduce storm water discharge over life strategies and targets noted in LEED cycle of a building. Ultimate target NC zero runoff. Reduce storm water discharge over life cycle of a building Zoning Bylaw User charge for storm water by volume Develop formula for calculating flows/cost - annual user fee Review of parcel coverage, open site space, landscaping requirements within existing zones Subject to establishment of a Storm Water Utility function Cost to City for review. Major public consultation required. Cost to City to implement and manage. May be additional costs to developer as different standards are put in place. S.5 Light Pollution Reduction Reduce light pollution to reduce impact on nocturnal environments S.6 Heat Island Reduce urban heat island effect and increase biomass and habitat Reduce or cut off exterior light fixtures when not required for safety and security. Protect, preserve and enhance the Urban Forest. 'Carbon credits' for increasing canopy Include within Development Permit Area guidelines for protection of the natural environment Expanded Tree Preservation Bylaw or Landscape Bylaw or Urban Forest Management Plan General design standards to be included in OCP. To be consistent with CPTED objectives. Tree Preservation Bylaw in effect. Additional measures required by bylaw. Cost to City to create standards. Cost to City to review proposals. Cost neutral to developer. Cost to City to create enhanced regulations plus public consultation. Cost to developer for compliance. City of Victoria Sustainable Building Policy - Private Sector Appendix A: Mandatory Requirements 1/3

27 SUSTAINABLE SITES - continued Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact S.7 Heat Island Low impact design standards Reduce impervious surfaces Zoning Bylaw Review of parcel coverage, open site space, landscaping requirements within existing zones S.8 Heat Island Reduce urban heat island effect and increase biomass and habitat Provide underground parking or reduce the amount of surface parking on impervious surfaces Zoning Bylaw Review of zones/regulations pertaining to incentives for underground parking or allowance for surface parking or materials required Cost to City for review. Major public consultation required. Cost to City for review. Major public consultation required. S.9 Heat Island Reduce urban heat island effect and increase biomass and habitat S.10 Transportation Demand Strategies - Bicycle Use S.11 Transportation Demand Management Strategies - On-site parking Encourage low impact transportation Reduce environmental impacts of providing parking on-site Create energy efficient landscaping. Install native plants and trees, efficient irrigation, methods to reduce evaporations (mulching), compost on site Projects to meet Bicycle Parking requirements Reduce impervious surfaces using strategies and targets as noted in LEED NC. Landscaping Bylaw Creation of a Landscape Bylaw based on BC Landscape Standards Cost to City to implement and manage landscape bylaw. Public consulation required. May be additional costs to developer with different standards, however, may result in long term maintenance & performance gains in landscaping. Currently in Zoning Bylaw In Place No cost to City. Cost to developer to install bicycle parking. Zoning Bylaw Review of zones/regulations pertaining Cost to City for review. Major public to incentives for underground parking consultation required. or allowance for surface parking or materials required S.12 Transportation Demand Management Strategies - On-site parking S.13 Transportation Demand Management Strategies - On-site parking Reduce environmental impacts of providing parking on-site Provision for small car stall size. Negotiated through the Development Variance Permit or Development Permit process Encourage alternative vehicular use Provision for vehicle plug in. Changes required to Zoning Bylaw, Schedule C Can be reviewed as market trends dictate. Not encouraged at this time due to adjusted parking stall size within City standards. Market demand insufficient at this time to consider implementation. Cost to City for review and administration. Less cost to developer for reduced parking/paving.. No cost to City. Cost to developer. S.14 Transportation Demand Management Strategies - Incentives Reduce the amount of off-street parking required and encourage alternative transportation Review of parking ratios (maximum limits). Unbundled parking. Zoning Bylaw Review of Schedule C, Parking regulations Cost to City to review standards. Potential savings to developer if reduced parking is required. City of Victoria Sustainable Building Policy - Private Sector Appendix A: Mandatory Requirements 2/3

28 WATER EFFICIENCY Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact W.1 Irrigation Promote efficient water use in landscaping Encourage native planting for less water demanding plants; xeriscaping. Landscaping Bylaw Provide plants lists and other Cost to City to develop and implement specifications. Refer to BC Landscape and administer bylaw. Lower Standards maintenance and watering costs for owner. ENERGY EFFICIENCY Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact E.1 Measurement and Verification Reduce energy consumption of buildings and associated GHGs. Participate in implementation of a Community Energy Plan Integrate as part of a larger indicator project (liaise with CRD and surrounding municipalities). Build on work completed by the CRD Cost to City to participate in region wide study. MATERIALS & RESOURCES Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact M.1 Operation Waste Reduction at source Facilitate reduction of waste generated by building occupants Require in-building 3 stream recycling Planning/public works initiative, facilities (recyclables, waste, organics) possible Bylaw to support future banned materials such as organic waste. Requires tandem work with CRD for waste disposal compliance. Develop standards (area requirements) for inbuilding three stream recycling facilities (recyclables, waste, organics) within commercial, industrial and multifamily developments. Cost to City to develop standards and review prior to building permit. Cost to developer. M.2 Construction Waste Reduce the amount of construction waste to maximize waste diversion from the landfill. Require construction waste management plan with specified targets. Public works initiative Region wide bylaw implemented by the Cost to City to develop standards and CRD monitor. Cost to developer. INDOOR ENVIRONMENTAL QUALITY No mandatory initiatives for private developments City of Victoria Sustainable Building Policy - Private Sector Appendix A: Mandatory Requirements 3/3

29 Performance Trade-Off Options Performance Options for developers seeking a change to planning regulations (variances, rezoning, density bonus) Note: It is the intent that these items will not affect the technical requirements of the building code and therefore not require approval through provincial authorities. All rezoning and development permit applications to provide a checklist outlining sustainability initiatives based on performance areas The City uses the LEED standard as a basis for negotiating density bonus for items relating to sustainability: the higher the LEED standard the higher density bonus achievable. Can be on a formula basis or negotiated on an individual site basis. Other negotiable items that may be considered at the time of a request for variance or rezoning application are: SUSTAINABLE SITES Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact S.1 Storm water management - post construction Improve storm water quality and reduce storm water discharge Use of green roofs Developer to offer green roof as part of rezoning or development permit process Engineering required. Secured by way of covenant or development permit Additional costs to developer. Long term savings to owners. Cost to City to ensure compliance. S.2 Storm water management - post construction Improve storm water quality and reduce storm water discharge Integrated water management plan for Bonusable item if zero run off rain and storm run off that collects, achieved stores redistributes the water for landscape use. Engineering required. Secured at building permit stage. Additional costs for developer at planning and construction phase. Cost to city for monitoring. S.3 Storm water management - post construction Improve storm water quality and Use of bioswales/rain reduce storm water discharge over life gardens/infiltration galleries cycle of a building Bonusable item if zero run off achieved Engineering required. Can be secured by covenant or development permit stage. Additional costs for developer at planning and construction phase. Cost to city for monitoring. S.4 Heat Island Reduce urban heat island effect Cool (Energy Star) or vegetated roofs or high Albedo roofs or vegetative walls. Developer to offer greener roofs or walls as part of rezoning or development permit process Engineering required. Secured by way of covenant or development permit Additional costs to developer. Long term savings to owners. Cost to City to ensure compliance. S.5 Heat Island Reduce urban heat island effect and increase biomass and habitat Protect, preserve and enhance the Urban Forest. 'Carbon credits' for increasing canopy Bonusable item if measures exceed Tree Preservation Bylaw or Landscape Bylaw or Urban Forest Management Plan Secured by way of covenant or development permit or cash contribution to tree fund Cost to the city for review and administration. Cost to the developer to implement higher standard. City of Victoria Sustainable Building Policy - Private Development Appendix A: Performance Trade-off Options 1/3

30 SUSTAINABLE SITES - continued Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact S.6 Transportation Demand Reduce environmental impacts of Management Strategies - Onsite providing parking on-site parking Reduce impervious surfaces using strategies and targets as noted in LEED NC. Negotiated density bonus item at time of rezoning, or with request for variances Secured by covenant/ works agreement and tied to building permit Cost to the city for review and administration. Cost to the developer to implement higher standard. S.7 Transportation Demand Management Strategies - Incentives Encourage alternative modes of transportation Bus passes, memberships in Car Share, or provision of Car Share car or stalls in lieu of stalls (or Van Pool). Can be negotiated through the Secured by way of covenant rezoning, development variance permit or development permit process Cost to the city for staff review and administration. May be cost neutral or savings to the developer if reduced parking is required. S.8 Transportation Alternatives Provide a wide variety of transportation alternatives to SOVs. S.9 Transportation - Road Standards Low impact design standards to reduce heat island effect Comprehensie Travel Demand Management program for an area to provide alternatives to reduce trips and number of parked cars. Reduce impervious areas on local roads / increase boulevard width / Green Streets Transportation Demand Study to inform the the rezoning, development variance permit or development permit process if parking variance requested. Negotiated at the time of rezoning application Information can be used in area traffic studies. Secured by funding, master development agreement or covenant. Reviewed on a case by case basis with developer providing justification and specifications for city vetting. Secured by works agreement. Cost to developer to provide study and to implement alternatives. Cost to city to ensure compliance. Cost to developer to install works to centre line of street. City responsible for long term maintenance. City of Victoria Sustainable Building Policy - Private Development Appendix A: Performance Trade-off Options 2/3

31 WATER EFFICIENCY No performance trade-off options for water efficiency ENERGY EFFICIENCY No performance trade-off options for energy efficiency MATERIALS & RESOURCES No performance trade-off options for materials & resources INDOOR ENVIRONMENTAL QUALITY No performance trade-off options for indoor environmental quality City of Victoria Sustainable Building Policy - Private Development Appendix A: Performance Trade-off Options 3/3

32 Voluntary Measures Note: It is the intent that these items will not affect the technical requirements of the building code and therefore not require approval through provincial authorities. All rezoning and development permit applications to provide a checklist outlining sustainability initiatives based on performance areas SUSTAINABLE SITES Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact S.1 Storm water management - during construction Maintain storm water quality and reduce storm water discharge Deal with storm water on site as much as possible - settling and filtration on site prior to discharge. Best management practices (BMP) Consider for larger sites Cost to the developer. Savings to the city. S.2 Storm water management - post construction Improve storm water quality and reduce storm water discharge Integrated water management plan for rain and storm run off that collects, stores redistributes the water for landscape use Considered in the building design Engineering required to satisfy Code requirements Additional costs for developer at planning and construction phase. S.3 Storm water management - post construction Improve storm water quality and reduce storm water discharge Green roofs Use BMP Engineering required to satisfy Code requirements Additional costs to developer. Long term savings to owners. No cost to City. S.4 Heat Island Reduce urban heat island effect Cool (Energy Star) or high Albedo roofs or vegetative walls and roofs Use BMP Engineering required to satisfy Code requirements Additional costs to developer. Long term savings to owners. No cost to City. S.5 Heat Island Reduce urban heat island effect and increase biomass and habitat Salvage vegetation to be removed as a result of land clearing for development Can be taken on as community project in concert with land owner Volunteer organization/developer to provide planning, organization and site management Volunteer labour and materials - cost neutral S.6 Heat Island Reduce urban heat island effect and increase biomass and habitat Decrease amount of impervious surfaces Provide underground parking At developer's discretion in zones where not required for density No cost to City. Can be significant cost to the developer.. S.7 Heat Island Reduce urban heat island effect and increase biomass and habitat Decrease amount of impervious surfaces in parking areas Use permeable pavers in place of hard surfaces Currently in Zoning Bylaw as optional surface material No cost to City. Potential cost and maintenance factor to developer. City of Victoria Sustainable Buildings Policy - Private Sector Appendix A: Voluntary Measures 1/6

33 SUSTAINABLE SITES - continued Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact S.8 Heat Island Reduce urban heat island effect and increase biomass and habitat Expand landscaping opportunities. Include opportunities for on-site gardening (urban agriculture). Landscaping to be flexible in design/intent Show areas suitable for gardening on landscape plan. Cost neutral to developer - provide top soil in areas for gardening in place of plantings and provide water supply S.9 Local Materials Reduce the embodied energy and emissions involved in transporting materials long distances Local materials, industries and employment None required Support local builders to create an information exchange. No cost to City. Cost variable to developer. S.11 Transportation - Automobile Alternatives Encourage low impact transportation Incentives to purchasers, employees, by providing a variety of bus pass options. Cash payout for parking. None required. Suggest partnering with BC Transit. At developer's/ business owner's discretion No cost to City. Cost to business owner/developer. Savings for employee/building owners. S.12 Transportation - Automobile Alternatives Encourage low impact transportation Care share co-op passes, vehicles or parkiing spots Partner with Car Share At developer's discretion. No cost to City. Cost to the developer. S.13 Transportation - Automobile Alternatives Encourage low impact transportation In commercial/office, provide end of trip facilities for cyclists (shower, change room, secure single use weather protected bicycle parking) See City of Vancouver standards At developer's/ business owner's discretion Extra cost to developer- less expensive to create at new building stage S.14 Transportation - Off Street Parking Encourage low impact transportation Provide priority parking for vehicles powered by alternative fuel and car pools, electric car plug ins None required At developer's discretion. Note on parking lot layout. No cost to City. Cost to business owner/developer. City of Victoria Sustainable Buildings Policy - Private Sector Appendix A: Voluntary Measures 2/6

34 WATER EFFICIENCY Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact W.1 Fixtures and appliances Conserve potable water resources, creating lower water usage rates for occupiers Sustainable Solution fixtures above 'low flow' fixtures. Individual water metering. None required Provide educational resources such as Potential initial higher costs for sample fixture choices for various building developer. Long term savings for types. Design information on website, owner and city. include waterless urinal info. W.2 Irrigation Promote efficient water use in landscaping Native planting for less water demanding plants; xeriscaping. Create guidelines Provide plants lists and other specifications on website Cost to City to develop guidelines. Lower maintenance and watering costs for owner. W.3 Storm water / irrigation Conserve potable water resources Capture rain water for irrigation BMP Design / specifications on website. On going maintenance cost to property owners. No cost to City. W.4 Water Reuse Conserve potable water resources Grey water reuse for irrigation BMP Must be undertaken with assistance of On going maintenance cost to a professional engineer to satisfy BC property owners. No cost to City. Plumbing code City of Victoria Sustainable Buildings Policy - Private Sector Appendix A: Voluntary Measures 3/6

35 ENERGY EFFICIENCY Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact E.1 Energy Performance in multifamily/commercial Reduce energy consumption of buildings and associated GHGs (Green House Gases). E.2 Energy Performance for Single Family Reduce energy consumption of buildings and associated GHGs. Refer to LEED guide for NC, include such items as high efficiency fixtures, zone controls. Consider storage heating to reduce peak demands. Energy Star and EnerGuide and Built Green participation Refer to ASHRAE standard and LEED standards None required Provide links to various authorities. Provide educational resources including various strategies, including workshops for the public. Design information on website. Cost to City for website improvements. Potential higher cost for developers for upgrades in installation. Lower cost for residents for energy use. Cost to City for website improvements. E.3 Ozone Protection Reduce ozone depletion Zero use of CFC & HCFC based Refer to LEED standard refrigerants (ex. No R-22 in units of 5 tons) as per LEED Provide links to various authorities. Partner with environmental agencies to get information out. Cost to City for website improvements. Potential higher cost for developers for upgrades in installation. E.4 Green Power Provide on-site energy alternatives Renewable energy sources, such as solar or thermal power In compliance with BC Electrical Code Provide educational resources including various strategies. Provide links on website. Minor costs to update web links E.5 Green Power for business Encourage the development of clean, renewable grid-source energy Purchase of 100% Green Power None required Give BC Hydro opportunities to get the word out. No cost to City. E.6 Climatic cooling and heating supported by landscaping Reduce energy consumption of buildings and associated GHGs. Passive and active solar energy use Create guidelines through landscaping. Landscaping to consider microclimate for solar access and orientation. Provide plants lists and other specifications on website Cost to City to develop guidelines. Lower cooler and heating costs for owner. E.7 Exterior Lighting Reduce energy consumption and night light pollution Design and install exterior lighting to be energy efficient In compliance with BC Electrical Code Design / specifications on website. Cost to City to develop standards. Lower energy costs for owner. E.8 Best Practice Commissioning Improve operation of buildings BMP as per LEED None required Refer to LEED standards No cost to City. City of Victoria Sustainable Buildings Policy - Private Sector Appendix A: Voluntary Measures 4/6

36 MATERIALS & RESOURCES Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact M.1 Recycled Content Increase the demand for building products that incorporate recycled materials Encourage 7.5% recycled content as per LEED credit MRc4 None required Refer to LEED standards No cost to City. M.2 Building Durability Maximize building longevity and minimize construction waste over the life of a building due to premature failure of components and assemblies. M.3 Operational Waste Reduction at source Facilitate the reduction of solid waste by building occupants Encourage compliance with CSA S (R2001) as per LEED credit MRc8. Create in-building 3 stream recycling Planning and public works initiative facilities (recyclables, waste, organics) to support future banned materials such as organic waste. None required Refer to LEED standards No cost to City Develop guidelines (area requirements) for in building three stream recycling facilities (recyclables, waste, organics) within commercial, industrial and multifamily developments Cost to City to develop guidelines. Cost to developer to install. M.4 Operation Waste Reduction at source Facilitate the reduction of solid waste by building occupants Provide space in building for internal re-use / exchange of discarded materials None required Building occupants/strata corporation to assume responsibility of operation of program No cost to City. Conducted cooperatively by residents. City of Victoria Sustainable Buildings Policy - Private Sector Appendix A: Voluntary Measures 5/6

37 INDOOR ENVIRONMENTAL QUALITY Performance Area Intent Proposed Strategy Mechanism Implementation Strategy Cost and Impact I.1 Indoor Air Quality Use healthy materials in construction to improve indoor air quality Choose interior products for indoor air quality, sustainable attributes None required Refer to third party testing agency for No cost to City. Potential design and information on low emitting materials material upgrade for developer. (paints, adhesives, sealants, floor coverings, composite wood). Refer to ASHRAE Standard for Ventilation for Acceptable Indoor Air Quality I.2 Natural Ventilation Make better choices for healthy materials, design and ventilation. Meet LEED credit EQc4 None required Refer to LEED standards No cost to City. Cost savings to owner for energy savings. I.3 Natural Light Make better choices for healthy design. Include balconies, terraces or decks in Must be consistent with City's developments. Operable windows. Liveability Guidelines Attention to placing of windows. Refer to LEED+E48 standards and City's Liveability Guidelines Cost to City to review at design stage. Design costs to developer. I.4 Thermal Comfort Provide more comfortable and productive work environments. Establish ASHRAE Standard as a minimum design requirement for the maintenance of adequate indoor temperature moderation/control for adoption in commercial buildings. None required Refer to ASHRAE standard No cost to City. Potential design and material upgrade for developer. City of Victoria Sustainable Buildings Policy - Private Sector Appendix A: Voluntary Measures 6/6

38 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW PRIVATE SECTOR DEVELOPMENT APPENDIX B Sheltair Report

39 Opportunities for Local Government Action on Energy Efficiency in New Buildings RFP No P01 PART 1: Overview May 3, 2006 The Sheltair Group West 8th Avenue, Vancouver, BC Canada V6J 1T5 t: f: Project Contact: Angela Griffiths

40 Sponsored by:

41 Table of Contents Table of Contents...ii List of Tables...iii List of Figures...iii Introduction...1 Goals...1 Objectives...1 Scope...1 Context...1 Situation Assessment...3 Population Growth...3 Challenges to More Energy Efficient Buildings...3 Legislative Authority...5 Rationale for Municipal Involvement in Energy Efficiency...6 Summary of Measures...8 Recommended Approach to Program Planning...15 Leveraging Opportunities...18 Conclusions and Next Steps...22 Appendix 1: Municipal Points of Intervention in the Planning Process...23 THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3, 2006 ii

42 List of Tables Table 1: New Building Energy Efficiency Targets for BC...2 Table 2: Projected Population Growth in BC (BC Statistics)...3 Table 3: Summary of Measures Available to Promote Energy Efficient New Buildings Table 4: Examples of Green Building Programs Employing a Variety of Measures Table 5: Leveraging Opportunities List of Figures Figure 1: Flowchart to Direct Decision Makers to Measures and Programs...9 Figure 2: Logic Model Approach to Program Planning...15 THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3, 2006 iii

43 Introduction Goals The goal of this project is to provide the necessary information: to motivate municipalities to promote energy efficiency in new buildings, and to assist municipal decision makers with the process of identifying and implementing measures to increase the energy efficiency of new buildings. The paper is divided into two parts. Part one includes a situation assessment, overview of legislative authority, rationale for municipal involvement, summary of available measures, leveraging opportunities and program planning direction. Part two includes a detailed description of measures including references and contact information. Objectives The objectives of the project are the following: 1. Provide the rationale for municipal involvement in a market transformation strategy for energy efficient buildings within a municipal context, 2. Identify direct benefits of municipal involvement in promoting energy efficiency of new buildings, 3. Identify program options suitable for municipal implementation, 4. Develop implementation strategies and actions for municipalities. Scope The project focuses on municipalities in BC and options available for new building construction in the residential and commercial/institutional sectors. Research on programs and measures include BC examples and best practices from elsewhere that are applicable in BC. Context The Ministry of Energy, Mines and Petroleum Resources (the Ministry) produced Energy Efficient Buildings: A Plan for BC in Fall Implementation of the plan is intended to conserve energy throughout the province and over time save money for the energy consumers of BC. Specific targets for energy efficiency of both existing and new buildings were set (see Table 1). The Ministry has allocated funding for 14 municipalities to develop programs to achieve these targets. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

44 Table 1: New Building Energy Efficiency Targets for BC SECTOR TARGET New detached, single family and row houses Achieve an EnerGuide for New Houses rating of 80 by 2010, by reducing average energy consumption in new homes by 32%. New multi-unit residential and commercial buildings Achieve energy performance of 25% better than the Model National Energy Code for Buildings by 2010, reducing average energy consumption by 37%. Each municipality will develop its own program of energy efficiency measures depending on the situation and targets the municipality sets. While there are some generic programs that can be implemented across all municipalities (e.g. Energuide, building labelling), the effectiveness of these programs depends on a number of factors including builder capacity, awareness, building types, economic drivers, resources available and energy. In this paper, we identify the key questions that a municipality should address as part of its program design. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

45 Situation Assessment Population Growth In 2005, BC was only one of four provinces to see an increase in housing starts over the previous year. This was accompanied by increases in population growth which are expected to continue into the foreseeable future (Table 2). While this bodes well for economic activity, it has implications for energy use. Residential space heating and cooling, heating water, and operating appliances, electronic equipment and lighting account for approximately17% of secondary energy use in BC. Of this, over 60% of energy consumed is for space and water heating, hence the importance of curbing consumption in this area and seeking more efficient ways to generate warm air and hot water. Table 2: Projected Population Growth in BC (BC Statistics) Change % change growth as % of BC growth Squamish Lillooet 37,193 68,000 30,807 83% 2% Fraser Valley 264, , ,630 59% 12% Sunshine Coast 28,557 40,000 11,443 40% 1% Central Okanagan 167, ,000 76,064 45% 6% Nanaimo 141, ,000 56,920 40% 4% GVRD 2,155,880 2,880, ,120 34% 56% Peace River 62,967 75,000 12,033 19% 1% British Columbia 4,254,522 5,552,000 1,297,478 30% - In 2005, the estimated value of building permits for non-residential units was on the order of $3 billion about a 60% increase over the same time period the previous year. In the commercial/institutional sector the dominant energy use is for space heating, which accounts for about half of the total consumption. The new development both residential and commercial required to accommodate and provide services for the influx of people to these growing regions presents an important opportunity to develop new buildings with energy efficient features and design. Challenges to More Energy Efficient Buildings Recent analysis completed as part of the Review of Energy Performance of Buildings in BC (REPBC) 1 confirms that significant cost effective energy savings are achievable. However, fragmented mandates coupled with sectoral barriers have resulted in a significant gap for cost effective energy savings in buildings. Green building practices (including those resulting in more energy efficient buildings) may result in a higher capital cost for developers. New technologies or designs can also be 1 MEMPR, Review of Energy Performance of Buildings in BC. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

46 perceived as potentially increasing approvals time because they are introducing novel solutions that are not always familiar to regulators. Therefore, although there are a handful of developers willing to incorporate green building practices into their developments because they see it as the right thing to do, many are reluctant to do so because of the real and perceived costs and other potential barriers. While it has been demonstrated that some green building practices (particularly those related to energy efficiency) can result in significant life cycle cost savings, it is also recognized that these savings do not necessarily accrue to the builder or developer. Furthermore, home buyers have not yet come to fully appreciate the long-term cost savings and associated benefits of green building practices. However, a large number of potential purchasers, particularly at the upper end of the market, say that they value green building features highly enough to pay a premium for them. 2 This is especially true of energy efficiency upgrades. Nevertheless, there is still a large gap between what purchasers say they want and builder s perceptions of consumer demand. Promoting energy efficient buildings therefore requires information, education, incentives and pricing to provide a carrot to balance the regulatory stick. These incentives can act on developers, home buyers, and end users, or both, to encourage market transformation towards more energy efficient building. Developer-oriented incentives generally act to encourage adoption of new technology, as do some buyer-oriented incentives (such as financial incentives to purchase efficient appliances). Other buyer-oriented incentives, such as escalating rate structures for water and energy use (e.g. per-unit costs are higher the more you use), encourage conservation behaviour. It is important that any programs developed to promote energy efficiency in buildings be nested within community wide targets or a community energy plan. For example, a community energy plan can ensure that an energy efficient subdivision is not built 20 minutes out of town with no transportation options other than the automobile. While the building code has historically been the primary tool to achieve efficiency in new construction, ongoing efforts by the provincial government to harmonize the BC Building Code with the National Building Code may reduce the effectiveness of this tool. As a result there is an emerging role for municipalities to contribute to defining how buildings are constructed. 2 The State of Green Building Cahners Residential Group. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

47 Legislative Authority Municipal governments can impact the energy efficiency of new buildings through the implementation of a range of regulatory and non-regulatory measures. As noted in Section 849 (1), and (2) of the Local Government Act, municipalities should work towards planning for energy supply and promoting efficient use, conservation and alternative forms of energy. However, this mandate is limited by the Community Charter. Section 9 of the Community Charter introduces the concept of concurrent regulatory authority. The legislation recognizes that in five spheres, municipalities and the Province have a shared interest in regulating activities. Specifically, the Community Charter concurrent authority provisions apply to bylaws that deal with the following: Public health Protection of the natural environment Wildlife Building standards Prohibition of soil deposit or removal Municipalities are provided with powers to adopt bylaws in the spheres of concurrent authority. However, this municipal authority is subject to provincial involvement. The Community Charter s concurrent authority provisions also apply to regional districts for three of the five spheres (i.e., building standards, public health, and prohibition of soil deposit or removal). The Ministry of Community Services has passed the Buildings and Other Structures Bylaws Regulation. The regulation clarifies the types of structures that local governments may regulate autonomously, such as those buildings or structures exempted from the BC Building Code. The regulation provides that any bylaws that establish technical building standards that are different from the standards established by the BC Building Code require approval by the Minister. A council/regional board is also restricted from extending or changing the application of the BC Building Code, as specified in the regulation. Therefore, while municipalities have a broad range of influence in this issue, they do not have direct control. A discussion of legislative authority and limitations accompanies each of the relevant regulatory measures we have proposed. We have not included information on those measures (such as taxation) that we do not believe can be implemented in BC at present. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

48 Rationale for Municipal Involvement in Energy Efficiency Our economies are built on the availability of affordable, reliable energy. Energy is a commodity, a strategic resource, a basic need and an ecological resource. Although all levels of government in Canada have some role in managing energy issues, none has a responsibility for ensuring communities have access to affordable, reliable energy. Reducing the demand for energy through demand side management programs can play a significant role in reducing a community s vulnerability to supply and price shocks as well as environmental impacts of energy use. Local governments can play a significant role in managing energy use in their community s in the form of energy policies and programs that result in energy cost savings for their constituents. For example, municipalities can implement programs to ensure that all new buildings use less energy and encourage innovative approaches to energy use such as district energy systems and local energy applications. Municipal involvement in improving energy efficiency can provide the following benefits: Competitiveness and economic development: Facilitating a market transformation towards energy efficient buildings can indirectly spur economic development by increasing the capacity within the local building community to build energy efficient buildings, attracting superior developers and making the community a more attractive place to live and do business through reduced operating costs. It is also possible that community built expertise in energy efficient buildings can be exported to other communities. Energy efficiency generates more employment per dollar spent than energy supply, and these jobs are skilled, good paying jobs that are local rather than imported. Specifically, in a recent analysis 3, it was estimated that the targets, defined in Table 1, would create approximately 19,600 person-years of employment in BC over the 2005 to 2020 period. Benefits Of Green Buildings Environmental benefits Enhance and protect biodiversity and ecosystems Improve air and water quality Reduce waste streams Conserve and restore natural resources Economic benefits Reduce operating costs Create, expand, and shape markets for green product and services Improve occupant productivity Optimize life-cycle economic performance Social benefits Enhance occupant comfort and health Heighten aesthetic qualities Minimize strain on local infrastructure Improve overall quality of life hybuild.htm Better, healthy buildings: In some communities improving local air quality, both inside and outside buildings, is a significant motivator. There is a clean air 3 G.E Bridges and Associates, Employment Impacts of Powersmart and Provincial Building Targets. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

49 benefit to improving the efficiency of buildings, particularly those communities where wood is used for heating. A better indoor air environment can minimize or eliminate the negative health effects, liability, bad publicity, and costly renovations and repairs. In addition, Green Buildings can be designed to be more durable and have less impact on the environment (see sidebar on page 6). Reduced infrastructure and operational costs: Energy efficient buildings can use 25% to 50% less energy than their conventional counterparts. Energy efficient and green buildings can reduce demands on infrastructure and will have lower operating costs related to energy. Lower operating costs will make it more attractive for businesses to locate in energy efficient buildings and will save money for residents. Municipalities are indirectly improving their services to the community by reducing energy costs. Increased access to federal, and provincial utility incentive programs: Promoting energy efficient buildings and assisting with capacity in the local building community will result in increased leveraging of financing programs at other levels of government and utilities. More information on leveraging is provided later in this document. Promote market transformation: Municipalities can promote market transformation by increasing the capacity to build energy efficient buildings in their communities, and increasing demand for energy efficient buildings. Taking leadership to help to address local energy shortages (such as communities on Vancouver Island): As indicated above, demand side management programs can help to insulate communities against restricted supply and higher prices for electricity, making communities more resilient to fluctuations in the global market. Promoting environmental stewardship: Whether from hydro or from fossil fuels, increasing energy supply will have environmental impacts. If communities can reduce the demand for energy, they will reduce their environmental footprint. More Informed Development Community: Municipalities represent a significant point of contact between government and utility programs and the building industry and can inform and educate their development community. Examples of these points of contact include zoning processes, building permit applications and building inspections (See Appendix 1 for more detail). Each of these points of contact can be used to deliver information and incentives to the development community. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

50 Summary of Measures In the above sections, we outline the rationale and benefits for municipal involvement in promoting energy efficient new buildings. In this section we provide an overview of how municipalities can effectively select and implement measures for promoting energy efficient new buildings. In Figure 1, we have provided more detail specific to the context of this paper on how municipalities can set targets and develop implementation strategies. As well, a description of the steps described in Figure 1 follows directly after. The steps are intended to represent a logical progression through increasingly intensive actions towards improving building energy efficiency. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

51 Figure 1: Flowchart to Direct Decision Makers to Measures and Programs Do you have an energy related plan? yes no Have you set targets? Initiate plan development no yes Conduct target setting exercise Where do you want to focus efforts? Demand side management Supply side management Corporate energy efficiency (municipal buildings) Community wide energy efficiency Conduct a feasibility study for community energy systems Create and implement policies for: 1. Green Building design guidelines and requirements for all new municipal buildings 2. Energy efficient purchasing Type of tool preferred (information, education, pricing, incentives, regulation) Target audience (trades, builders, developers, intermediaries, end users) Sector (residential, ICI) Go to Table 3 for example programs THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

52 Choosing Measures to Implement 1. Create an Energy Plan and Conduct Inventory The PCP program of the FCM provides funding for energy plans but they can be completed outside this program. Although the main focus of the PCP program is climate change, participation allows municipalities to access measures, methods and resources for feasibility planning and community energy planning. The first step in energy planning is a baseline inventory. The inventory helps municipalities determine the current level of energy efficiency in buildings. At this stage, municipalities should review current practices in their jurisdiction for building construction, key builders and developers, etc. This can be completed independently of the PCP program as part of community energy planning. 2. Set Targets Setting targets for community or corporate energy efficiency is an important driver for action on energy efficiency and allows municipalities to gauge progress and prioritize actions. Again, this can be done through Milestone 2 of the PCP program or independently. In BC at present, 14 municipalities have committed to the provincial government s targets for new buildings and as such will gain access to provincial funding for programs for the next year. The availability of this funding enables municipalities to begin to take action. However, long-term sustainable progress towards more energy efficient buildings requires a more comprehensive planning process. The level of detail and efforts put into these plans can vary according to the resources that the municipality has available. 3. Determine whether focus is to be on supply side management or demand side management While the focus of the current analysis is on demand side management, it is important to highlight supply side options such as community energy systems. Increasingly, municipalities are considering the installation of community energy systems in new developments as they offer financial and environmental benefits relative to traditional supply alternatives. Examples include the Lonsdale Energy Corporation in the City of North Vancouver, the proposed Athlete s Village in the City of Vancouver, as well as Whistler. 4. Determine whether to focus on corporate vs. community emissions As a first step, municipalities should lead by example, and implement energy efficient buildings policies or guidelines for new corporate buildings. 5. Identify preferred measures for promoting community energy efficiency Choosing a measure and a program for delivering the measures to the community will be influenced by the amount of resources available, characterization of the community emissions and socioeconomic context, and the level of council support (e.g. budgets, regulatory measures). Measures will work most effectively in the context of a program developed using the methods outlined in the section on program planning. Some of the measures proposed have been used in BC, while others have been used in jurisdictions outside of the province and, in a few cases, these measures have only been proposed. Table 3 summarizes information on measures by type and target audience and provides examples and reference for further information. More information is included in the referenced sections in Part 2 of this document. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

53 Type of Measure Policies Civic Building Policies Policy Statements in OCP or other Policies Information Building Labelling Energy Manager Information Programs Table 3: Summary of Measures Available to Promote Energy Efficient New Buildings Target Description Examples Audience The municipality establishes green building policies for all new civic building construction. Some municipalities are opting for high-level policy statements in their OCP Bylaw encouraging alternative energy generation and/or energy efficiency. 3 rd party standard as a measure of building s energy efficiency. Energy managers facilitate information and knowledge exchange between municipalities, developers, utilities, and other orders of government. Municipal governments can design their own information programs or promote other programs. Municipal staff, Builders, Developers City of Richmond s Sustainable High Performance Building policy City of Vancouver Corporate policy to achieve LEED Gold on new civic construction 4 Sustainable Seattle requires new civic facilities be constructed to LEED standards 5 All District of Salmon Arm - bylaw to amend OCP City of North Vancouver 6 District of North Vancouver End users Commercial and Institutional: LEED, Green Globes Residential: EnerGuide, Built Green, Whistler Green All City of Kelowna: Energy Manager Sustainable Building Pilot Project City of Quesnel: Energy Manager City of Vancouver: Planner 1and Engineer in Training All Disseminate energy efficiency information in Planning Dept. Environmental Advisory Committees Municipal Publications Information Resources (One Stop Shop) Information sharing with Real Estate Boards BC Solar Hot Water Program is an example of what municipalities could promote Section Part Education Building Sector Training Training for builders, contractors, architects on what is available in terms of products, performance etc. Trades and Builders City of Kelowna, Sustainable Building Program Built Green BC/EnerGuide for New Houses City of Vancouver: Stakeholder Group of THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

54 Type of Measure Training for all Municipal Building Officials Demonstration Projects Development of Building Permit Checklists Pricing Varied Development Cost Charges Energy Efficient Mortgage Local Improvement Charges (LIC) Energy Levy (for Municipal Utilities) Description Municipalities could consider offering training to its building officials. Pilot project, example of an energy efficiency application Builders, as part of the permit process, are required to review and fill out a questionnaire on green attributes and energy-related provisions of their proposed development. There are innovative ways municipalities can vary DCCs by geographic area and building type so as to favour both smart growth and high performance building design 7 Municipalities can encourage credit unions in their community to offer more attractive mortgage terms for energy efficient buildings. A LIC is a voluntary, innovative way for municipalities to cover the capital costs of specific improvements to a site or neighbourhood, then recover those incremental costs by assessing a LIC to the property owner(s) that benefited from the improvement. Those municipalities with their own electric utility (Kelowna, Nelson, Penticton, Summerland, Grand Forks) could apply hook-up levies to new buildings that only meet basic building standards, paying the levied funds out to new buildings that meet a Target Audience Examples Industry Professionals Green Building Training Modules City of Vancouver (forthcoming) Scottsdale Green Building Program Scottsdale, AZ Built Green Colorado HVCI Quality First Douglas College BES HRAI Course on EnerGuide and Energy Star All No examples found 4.2 All Okotoks; Drakes Landing 4.3 Builders/ developers Builders/ developers New Westminster Port Coquitlam Section Part City of Vancouver (has considered) 5.1 End users No examples found at present 5.2 End users No examples for energy efficiency at present 5.3 End users No examples found at present For more information see THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

55 Type of Measure Description minimum energy efficiency requirement. Note: this may require application to the BC Utilities Commission. Target Audience Examples Section Part 2 Financing Incremental Costs of Energy Efficient Measures Incentives Density bonusing This tool involves a municipality financing the incremental cost of an energy efficient feature (e.g. a ground source close loop system). This can also be done as an energy mortgage where local credit unions offer mortgages on the incremental capital costs of energy efficiency features. Density bonusing is when a municipality permits additional density beyond the zoning allotment, usually in exchange for the provision of an amenity with public benefit. Builders End users Mortgage providers Financers Builders/ developers Toronto Atmospheric Fund (TAF) Verdant at UniverCity (SFU Lands, Burnaby, BC) City of Quesnel (not energy efficiency specifically) Hailey, Idaho City of North Vancouver Awards Recognizing green building efforts with civic awards All Issaquah, WA Green Builder of the Year award 6.2 Regulatory Performance based approval process Discounted Building Permit Fees Minimum energy performance bylaw Service Area Bylaw Development or Building Preferential building permit reviews for green buildings (as per Section 147 of the Community Charter). Any extra expenditure of municipal resources to support energy efficient building applications would require planning and further approvals under Section 149 (d) of the Community Charter. Building permit or other municipal fees can be preferentially discounted for energy efficient buildings (as per Section 194 of the Community Charter) Building-specific energy efficiency standard enacted through bylaws. Only Vancouver currently has this authority through the Vancouver Charter. Other municipalities could develop bylaws with Provincial involvement. This type of Bylaw establishes service areas for particular types of energy services (e.g. hydronic heating systems to ensure ease of retrofitting to community energy systems). Required steps to be granted a development permit application submitted includes energy efficiency Builders/ developers Builders/ Developers Builders/ developers Builders/ developers Builders/ developers Innovative Building Review Program - Santa Barbara County, CA Issaquah, WA Preferential Building Permit Review THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3, No examples found 7.2 City of Vancouver s Energy Utilization Bylaw Pleasanton, California s Green Building Ordinance City of North Vancouver Hydronic Heat Energy Service Bylaw 2004, No Green Points Program Boulder, CO 7.5

56 Type of Measure permit requirements Energy Bylaws Rezoning Description considerations. In BC, Local governments would be able to outline guidelines only- not regulated with the exception of Vancouver. A bylaw that requires a specific energy efficiency application in all new buildings (e.g. solar hot water systems). Alternatively, the bylaw could require all new buildings to be solar hot water ready (at a very small incremental cost to the builder at the time of construction). This is possible in Vancouver only A municipality can stipulate additional requirements in exchange for rezoning (i.e. energy efficient building features). Another way to secure energy efficient features in exchange for rezoning is a restrictive covenant, which is essentially a private contract between the municipality and the developer. Section 219 of the Land Title Act permits the use of restrictive covenants. Target Audience Builders/ developers Builders/ Developers Examples Barcelona, Spain, Solar Thermal Ordinance (Solar Hot Water) Solar Access Policies City of Sarnia No examples found- for more information on legislative authority see Part 2 Section Part THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

57 Recommended Approach to Program Planning In the above section we have directed municipalities to the most appropriate measures given their interests and stage in energy planning. The next step is to design a program to implement the measures effectively. Implementation options range according to the type of measure selected and can range from developing an information campaign to training programs or incentives. Regardless of the measure selected, the municipality should go through a program planning process to ensure that they are clear about the goals, implementation process, and expected outcomes of any deployment of municipal resources to improve energy efficiency. In this section, we outline basic steps in program design below (see Figure 2). These steps can be applied to any process or program. Figure 2: Logic Model Approach to Program Planning Source: accessed February 24, THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

58 The main components of planning an effective program are situational analysis, identification of inputs, outputs and outcomes, and the evaluation of assumptions and external factors. Each component is described below. It is important to note that they are not always completed in the order presented below. Situational Analysis A situational analysis can be as simple as working through the flowchart presented in Figure 1, or represent a detailed baseline analysis of corporate and community energy use. It is important to conduct a situational analysis and to identify priorities and potential synergies and barriers as context for identifying low hanging fruit in the municipality. At this stage, priorities and targets will be identified. Identification of Inputs Inputs to be considered include resources (financial or in kind), contributions, or investments that go into the program (e.g. marketing support from the communications department for an R2000 homes marketing program). Identification of Outputs Outputs of a program can include activities, services, events and products that reach people who participate or who are targeted. These are generally direct outputs of the program (e.g. marketing materials for a R2000 housing program). Identification of Outcomes As indicated above, desired outcomes are often identified at the beginning of the program planning process and the program designed around them. Ideally it is an iterative process that identifies outcomes, and verifies that they can be achieved given the resource available (inputs) and anticipated outputs. Outcomes are the results or changes for individuals, groups, communities, organizations, communities, or systems. Sometimes, program planners identify short, medium and long term outcomes. Short term: Medium term: Long Term: 20% increase in the number of R2000 homes built in the community All new construction is R2000 Our municipality is recognized as a leader in energy efficient new homes External Factors As the outcomes become longer term, more external factors may come into play, which can influence the program action. For example, the Federal government could introduce a new incentive program that significantly subsidizes R2000 home construction. An analysis of external factors including issues such as energy supply, price shocks, and projected growth and demographics is particularly important for programs in which municipalities are investing significant resources. Most programs will make use of a number of measures (e.g. policy, information and training). We have included information in Table 4 on several programs. Most of these focus on green buildings rather than energy efficiency specifically. The types of measures deployed in these programs are indicated on the far right of the table. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

59 Seattle Sustainable Building Seattle, WA Table 4: Examples of Green Building Programs Employing a Variety of Measures Program Description Types of Measures Seattle has a comprehensive programs to encourage green building, including: Policy Leading by example, requiring all new City buildings to achieve LEED Silver and providing guidelines for design, construction and Information operations of City facilities Education Offering technical assistance to builders in the form of LEED-related resources (e.g. matching LEED energy requirements to local Incentives codes), product guides, and process guides (e.g. a life-cycle assessment guide) Providing information and links to financial and other incentives offered by local organizations Providing financial assistance to commercial builders meeting LEED standards, with higher levels of assistance for higher achievement Green Buildings Arlington County, VA 8 : Green Builder Austin, TX If developers want a variance of any kind, they are required to participate in the Green Buildings Program and required to: Have a LEED-accredited professional on the development team Provide a LEED scorecard as part of site plan applications Incorporate applicable LEED credits into site plan conditions and indicate why other LEED credits were not pursued Develop and follow a construction waste management plan Install a full suite of Energy Star compliant appliances and fixtures for multifamily residential projects As an incentive to achieve LEED certification, Arlington requires all participating developers to contribute a fee equivalent to the LEED certification fee to a Green Building Fund. The contribution is refunded if the developer achieves LEED certification. Arlington is the only jurisdiction we know of to experiment with density bonusing for green building, offering a bonus of FSR for LEED projects. Finally, Arlington has a new program for single detached housing, providing: technical information; expedited plan review; marketing assistance and signage; links to and recognition of participating builders; and a green homeowner s manual. Austin s Green Builder program is a long-time success. It incorporates the following components: A membership program for builders and architects who have made a commitment to sustainable building; Technical assistance in the form of consulting services, training, sourcebooks and guidelines; A green home buyer s checklist; An annual tour to showcase green building; Links to rebates provided by local organizations; and Marketing support. In addition, the Green Builder program links with the SMART affordable housing program, which provides further incentives to builders providing affordable housing: Bond financing of multi-family affordable housing projects by non-profits; Interim zero-percent construction loans for affordable small lot infill projects; and expedited plan review and fee waivers for qualifying affordable housing projects. Information Education Incentives Regulatory Information Education Incentives Pricing 8 Although this is not specifically related to energy efficiency performance, this is provided as an example of a program that incorporates a number of specific tools like those outlined in this paper. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

60 Leveraging Opportunities Table 5 outlines some of the leveraging opportunities available to BC municipalities. Each opportunity targets different measures and has different requirements in terms of proposals and administration. There are abundant incentive programs offered by federal and provincial governments, and utilities to help builders through financial and technical assistance. Likewise, there are numerous programs available to municipal government, both for civic capital projects and for addressing capacity shortages. A selection of these programs is provided below. We have not identified all technology deployment based programs offered by the Federal government, as they are very specific to certain types of technology. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

61 Table 5: Leveraging Opportunities Program Description Reference Government of Canada Natural Resources Canada Commercial Building Incentive Program (NRCan) Industrial Building Incentive Program (NRCan) EnerGuide for New Houses (NRCan) Renewable Energy Deployment Initiative (NRCan) Federation of Canadian Municipalities Green Municipal Infrastructure Fund Green Municipal Enabling Fund Green Municipal Fund energy stream Incentives to building owners who incorporate energy efficiency features in the design of new commercial or institutional buildings- must exceed MNECB standards by 25%. Up to $60,000. Incentives to building owners who combine energy-efficient features and processes into the design of new industrial buildings. Up to $80,000. A service to provide independent expert advice on energy-efficient home construction to homebuilders and new homebuyers. Also see Ministry of Energy, Mines and Petroleum Resources EnerGuide incentive (in collaboration with BuiltGreen BC) Financial incentives for the installation of solar air heating systems, solar hot water systems, and high efficiency/low emissions biomass combustion systems. The main target audiences are businesses and federal facilities, however other projects could be considered. An example is the BC Solar Hot Water Project which leverages REDI program grants with Energuide audits and Provincial government rebate of $20/GJ Provides interest-bearing loans, loan guarantees, and grants to eligible recipients carrying out municipal environmental projects that improve energy and process efficiency in municipal buildings. Offers grants to eligible recipients for feasibility studies that assess the technical, engineering, environmental and/or economic viability of proposed municipal environmental projects. Through the Energy RFP process, GMF will award funds totalling approximately $20 million in low interest rate loans and $2 million in grants. There are two streams: Stream A: Energy efficiency retrofits to municipal buildings, or the construction of new energy efficient municipal buildings. Stream B: New renewable energy supply projects and energy distribution systems. ial-assistance/newbuildings/index.cfm?attr=0 -assistance/newbuildings/index.cfm?attr=0 al/new-homes/upgradepackages/energuide-service.cfm?attr=4 glish/view.asp?x=455 Nitya Harris for more info: Simona Birea, Application Co-ordinator, Green Municipal Fund Phone: (613) , ext. 238, energy.rfp@fcm.ca Affordability and Choice Today program (with CMHC & CHBA) BC Government Home Renewable Energy Generation Provides grants of up to $5,000 to builders, developers, non-profit organizations, and municipalities to engage in multi-stakeholder regulatory reform. Designed to facilitate changes in residential building approval processes, planning regulations, and building regulations. The following renewable energy generating materials and equipment are exempt from provincial sales tax: wind-powered generating equipment; solar photovoltaic collector panels; solar thermal collector panels; and micro-hydro turbines and generators rated up to 150 kilowatts. In most cases, associated and necessary THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

62 Program Description Reference components of these systems, such as wiring, controllers, inverters, pumps, tubing and intake pipes (but not batteries), are also tax-exempt when purchased as part of the systems. Exemption for Material and Equipment Used to Conserve Energy BC Ministry of Community Services Local Government Planning Grant BC Ministry of Energy, Mines and Petroleum Resources EnerGuide for An exemption from provincial sales tax for prescribed energy conservation material and equipment that prevent heat loss from a building, for prescribed residential energy efficient furnaces, boilers and heat pumps, for prescribed alternative energy sources, and for natural gas and propane conversion kits for internal combustion engines. Energy recently added as a new category for eligible projects for funding up to $10,000. Offers builders an incentive of $500 towards the cost of achieving an EnerGuide for Houses 80. Administered by Canadian Home Builders Association BC. Includes all Part 9 buildings. Homes BC Hydro Windows Rebate Program Offers $1.00 for every square foot of EnergyStar labelled windows installed in single-family homes, duplexes, townhouses or apartments. PowerSmart for Business Program PowerSmart High Performance Building Program Design Assistance Program Terasen Gas Efficient Boiler Program New Construction Heating Program Think Grand Home Builders' New Construction offer Offers a design assistance service to help plan and design cost-effective and energy efficient buildings. Provides financial incentives and measures to qualified projects (large new projects of at least 50,000 square feet or electricity-intense facilities such as arenas, refrigerated warehouses or grocery stores). A fee-for-service program that helps an existing design team to develop a building with higher performance targets. Encourages the use of high- efficiency, natural gas hydronic space-heating systems in new construction and retrofit applications. The incentive applies to the incremental cost of a high efficiency boiler over a standard system. $500 when you install an EnergyStar qualified natural gas space-heating system along with any natural gas water heater in a new, individually metered residential home. For residential Builders/ Developers and Trades & Partners - Lower Mainland and Interior customers only. Pays $1000 when you install an EnergyStar qualified natural gas space-heating system along with any natural gas water heater. This offer applies to any new (individually metered residential) home. For builders, developers & engineers - Vancouver Island and Sunshine Coast customers only. s/bulletins/sst_011.pdf arch/grants.html Contact Jennifer Shaw, Canadian Home Builders Association of BC at or ), JShaw.home@shaw.ca no/reno8621.html ner/pspartner1009.html Contact Graham Henderson, (704) earch/_efficientboilerprogram.htm#incenti ve earch/_newconstructionheatingprogram. htm earch/_thinkgrand.htm Promotions Database Search for promotions based on customer type and region. earch/search.htm THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

63 Program Description Reference Real Estate Foundation of BC/ VanCity Green Building Grant Program Grants of up to $50,000 for projects that aim to minimize the impacts of climate change and improve sustainable land use practices. Applications are accepted from not-for-profit organizations, including charitable organizations and cooperatives. enbuilding.html Canada Mortgage and Housing Corporation (CMHC) Mortgage Loan Insurance Refund A 10% premium refund on mortgage loan insurance premiums, as well as extended amortization to a maximum of 35 years, to individuals who use CMHC-insured financing to purchase an energy efficient home, purchase a home and make energysaving renovations, or renovate their existing home to make it more energy efficient. _022.cfm THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

64 Conclusions and Next Steps There is no one size fits all program for municipalities to use in order to improve the energy efficiency of new buildings. However, there is an array of possible measures that municipalities can implement related to energy efficient buildings. In addition to compiling an extensive (although not exhaustive list) of potential measures, we have attempted to outline an approach that all municipalities can use to identify their preferred targets, measures and approaches and some direction on how to develop and deliver an effective program that makes the most of their resources. For larger municipalities with in house expertise, we suggest the development of a full scale community energy plan (or completion of Milestone 3 of the PCP program) as the preferred means of developing an implementation plan and effective programs. It is recognized that many municipalities have neither the financial, nor the in house expertise required to undertake detailed baseline characterization studies and community energy plans. The process outlined here is intended to be useful particularly to those municipalities that do not have a plan already in place. All of the measures outlined in this project will promote more energy efficient buildings, but some will be more effective than others. A consistent, rigorous approach to planning and developing programs to make use of these measures will ensure the biggest bang for the buck. This analysis can also ensure that the right measures are chosen to achieve the desired targets and outcomes for each municipality. Support from the provincial government on a number of fronts would significantly speed up the process of ensuring that buildings in BC are more energy efficient. Although municipalities in BC are given the mandate to address energy efficiency in the Local Government Act, the Community Charter severely restricts what municipalities can implement, particularly related to rezoning options, taxation and regulatory tools. The Vancouver Charter explicitly exempts Vancouver from these restrictions and a similar model could be applied to other communities with direction from the Provincial government. In addition, changes to the building code to require minimum energy efficiency standards would instantly change practices in a consistent manner across the province. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

65 Appendix 1: Municipal Points of Intervention in the Planning Process THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

66 Development Phase Official Community Plans Neighbourhood Planning Zoning Needs Assessment and Site Selection Concept Design. Document Development Tender Construction Commission Occupancy Municipal Intervention Planning Phase Municipalities can include targets related to energy efficiency in the OCP or neighbourhood plans. Zoning can reflect energy efficiency targets (e.g. designated zones where all new buildings must achieve minimum energy efficiency standards). Construction Phase At this stage, the potential impact of new facilities and acceptable performance levels are determined. Energy efficiency criteria can be incorporated into this process. Performance parameters are developed during this stage including budget, usage, environmental performance, service life etc. Contractors are selected. For municipal buildings, the municipality can required that contractors include LEED certified professionals for example. Contract administration. Ensure the architect achieves the goals identified in the concept design stage and the contractor fulfills the requirements of the design (e.g. as it relates to energy efficiency). May be linked to occupancy permits. Marketing/Occupancy Facilities are then marketed to end users (can be either commercial tenants or residential). The municipality can support marketing efforts for more energy efficient buildings. Type of Tool Policy Regulatory Incentives pricing Incentives Pricing Education Policy Regulatory Information Education Incentives THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 1: Overview May 3,

67 Opportunities for Local Government Action on Energy Efficiency in New Buildings RFP No P01 PART 2: Measures May 3, 2006 The Sheltair Group West 8th Avenue, Vancouver, BC Canada V6J 1T5 t: f: Project Contact: Angela Griffiths

68 Sponsored by:

69 Table of Contents Table of Contents...i 1.0 Introduction Policy Measures Civic Building Policies Policy Statements in Official Community Plans Information Building Labeling Municipal Energy Manager Information Programs Education Building Sector Training Training for all Municipal Building Official(s) Demonstration Programs Development or Building Permit Checklists Pricing Varied Development Cost Charges (DCCs) Energy Efficient Mortgage Local Improvement Charge (LIC) Energy Levy (for municipal utilities) Financing Incremental Costs of Energy Efficient Measures Incentives Density Bonusing Awards Regulatory Performance-based Approval Process Discounted Building Permit Fees Minimum Energy Performance Bylaw Service Area Bylaw Development or Building Permit Requirements Energy Bylaws Rezoning i

70 1.0 Introduction This document represents Part two of a two-part paper outlining measures that municipal governments in British Columbia can take to influence building energy efficiency in new buildings in their communities. In Part one of the document, we review current demographics context, rationale for municipalities to engage in promoting energy efficiency, legislative context, program planning and leveraging opportunities. Part one also includes a table summary of measures that refers readers to sections in this document for further information. In this document, we provide more information and references related to the measures identified. All of these measures can be applied in British Columbia to varying degrees. In some cases we have identified measures that can be applied in Vancouver only by virtue of the Vancouver Charter. Part two is divided into sections loosely categorizing types of measures: Policy Measures Information Education Pricing Incentives Regulatory Under each category, is a description of the type of measures, legislative authority (where relevant) barriers to implementation, synergies with other types of measures or funding resources and examples from BC where available or elsewhere. Some measures are proposed only and little information is available on implementation. Taxation measures were originally identified as potential measures for application in BC, but subsequent legal analysis indicated that there was no legislative basis for municipalities to use taxation to promote energy efficiency in new buildings. As such, we have not included information on these measures here. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

71 2.0 Policy Measures 2.1 Civic Building Policies Description/Goal: To reduce future operating costs, and to set a positive example for the private sector, many municipalities establish green building policies for all new civic building construction. Most opt for a LEED rating system, while some local governments prefer to adopt many of the LEED features for a tailored energy efficient building standard. Often, civic building policies will include provisions to encourage similar standards be adopted by the private sector on a voluntary basis. Barriers: If municipalities choose to develop their own policy, they will require capacity to do lifecycle costing of projects to compare operating cost savings over the lifetime of the building with the incremental capital costs of a high performance building. Developing a civic building policy will also require some knowledge of energy efficient measures for buildings. However, this is not an issue if a pre-existing program such as LEED is used. Synergies: Links well with existing building labeling programs due to readily available standards, training services and technical guidance. Opportunities to leverage funding for the development of new policies and regulations exist (Real Estate Foundation of BC/ VanCity Green Building Grant Program, BC Ministry of Community Services - Local government planning grant, Affordability and Choice Today program). There are also incentives available for feasibility studies, planning and implementation through FCM. Examples: City of Richmond s Sustainable High Performance Building policy This policy ensures that all new civic buildings and renovations will be evaluated based on considerations of life-cycle costing and initial investment requirements. This included expanding the previous building policy (which was limited to energy efficiency) to incorporate a broader range of green building factors (water use, air quality, etc.). It was a facilities department initiative, involving planning and policy staff, environmental department staff, and engineering staff. The departments collectively crafted a report to council over the course of a year. The policy applies to all civic buildings greater than ft and recommends that they pursue LEED Gold certification (minimum LEED silver). Smaller civic buildings are encouraged to still incorporate the same standards, but not necessarily to LEED certification. shared/assets/011905_item pdf THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

72 City of Vancouver Green Building Policy In July 2004, the Vancouver City Council approved a requirement of LEED Gold for all new civic buildings over 500 square meters. Additionally, these civic buildings must show at least a 30% improvement in energy consumption over the City's current energy bylaw. This Gold standard is currently the highest standard for any municipality in North America. In addition, the Southeast False Creek model sustainable community will have a minimum design standard of LEED Silver, with a target of LEED Gold. Mandatory requirements will be expected for all developments in Southeast False Creek to meet existing City policy. 2.2 Policy Statements in Official Community Plans Description/Goal: Some municipalities are opting for high-level policy statements in their OCP Bylaw. This encourages alternative energy generation and/or energy efficiency. Including such wording sets the framework for future bylaws and/or incentives that a municipality may choose to pursue (i.e. density bonus for energy efficiency, lower DCCs for green building practice related to water/sewer infrastructure). Barriers: Staff resources to do background work for a proposal to council. Synergies: Opportunities to leverage funding for the development of new policies and regulations (Real Estate Foundation of BC/ VanCity Green Building Grant Program (if partner with non profit) BC Ministry of Community Services - Local government planning grant, planning and feasibility study funding under the FCM). Examples: District of Salmon Arm - bylaw to amend OCP Policy statements in the OCP encourage alternative energy sources for new and existing buildings. The measures are strictly voluntary, with no regulatory demands, standards or expectations by the District. Their planners suggest that this bylaw could be the foundation for future changes to the Zoning, Subdivision and Servicing, and Development Cost Charge (DCC) bylaws, for example: Lowering Development Cost Charges in serviced/ high density areas (see Performance-based Development Cost Charges section for details around DCCs), Relaxation of minimum servicing standards (e.g. road widths, and off-site sanitary and drainage requirements), which could be achieved with variances, and Relaxation of Zoning Bylaw regulations by way of either variances, or by introducing more flexible use and density provisions (i.e. more mixed uses and density bonuses). THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

73 3.0 Information Examples of information measures include building labeling, the role of energy managers, and promotional materials. 3.1 Building Labeling Description/Goal: Building labeling conveys superior energy performance information, adding comparative advantage over other, less efficient buildings. In some cases labeling/certification also entitles the builder to incentives that can limit or eliminate the incremental capital costs of energy efficiency features. Barriers: Meeting third party standards can add additional capital costs to construction. The certification/labeling process requires the developer to absorb additional time and financial resources. Synergies: Funding and incentive programs may be available. Many building labeling programs are well known and come with training programs for builders. Examples: See table on following page. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

74 Program Sector Description Link Leadership in Energy and Environmental Design (LEED) BC Adaptation Commercial/ MURBs (part 3 buildings) Rates environmental performance of buildings. Significant emphasis on energy efficiency. Model National Energy Code of Canada for Buildings (MNECB) ASHRAE 90.1: Energy Efficient Design of New Buildings Except Low- Rise Residential Buildings Commercial Building Incentive Program (CBIP) (offered through NRCan) EnerGuide for Equipment and HVAC Commercial/ MURBs (part 3 buildings) Commercial/ MURBs (part 3 buildings) Commercial/ MURBs (part 3 buildings) Residential/ Commercial Cost-effective minimum requirements for energy efficiency in new buildings. Building code and industry standards in commercial construction. 13% more efficient than MNECB. (see Vancouver s Energy Utilization Bylaw). A building labeling program insofar as the buyer/renter/lessee is assured of high energy performance. CBIP is 25% more efficient than the MNECB and 12% more efficient than ASHRAE A labeling initiative to promote energy-efficient major household electrical appliances and heating, ventilating and air-conditioning (HVAC) equipment. EnerGuide for Industry Industry Interactive measures, tips, return-on-investment analysis and business cases to help energy-wise industries make informed choices. BuiltGreen BC R-2000 (NRCan and Canadian Homebuilders Association) EnergyStar for New Homes EnerGuide for New Houses Residential (part 9 buildings) Residential Residential Residential Concentrates on four separate and distinct target areas, of which Energy Efficiency is one (measured by EnerGuide for New Houses labeling). Offers technical advice to builders to help them with certification process. High performance standard is a series of technical requirements that make new homes 30% more energy efficient than a standard home built to code. Currently a pilot. New homes will be 40% more energy efficient than those built to minimum Ontario building code standards. Rating system is a standard measure of a home's energy performance. An EnerGuide rating of 80 can result in energy savings of 30-50% over a code-built home in BC. EnergyStar Equipment Identifies the most energy-efficient products in their class. Most products are 10 to 50% more efficient. Building Owners and Managers Association of British Columbia Go Green Commercial A national recognition and certification program for commercial buildings based on performance standards. mnecb/index_e.shtml cial/financial-assistance/newbuildings/index.cfm ent/english/page52.cfm?print View=N&Text=N glish/index.cfm?attr=0 Contact Jennifer Shaw, Canadian Home Builders Association of BC at or ), JShaw.home@shaw.ca tial/energystarhousing.cfm?attr=4 tial/personal/newhomes/upgradepackages/energuideservice.cfm?attr=4 star/english/consumers/index.c fm?attr=0 php 3.2 Municipal Energy Manager Description/Goal: Energy managers facilitate information and knowledge exchange between municipalities, developers, utilities, and other orders of government. They ensure developers are informed of current and emerging incentives, best practices and innovations, and can often help a developer access incentive programs. An energy manager serves as a go to person for developers who are seeking the benefits of energy efficient construction. Energy managers provide information but may also provide education. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

75 Barriers: Smaller municipalities often lack the capacity to allocate staff time for energy efficiency initiatives. However, some municipalities are allocating a few person/hours/week to advancing energy efficiency (e.g. Dawson Creek). Synergies: Through joint federal/provincial programs, some municipalities were recently able to retain full time energy managers, while others allocate a portion of municipal staff person time. Examples: City of Kelowna: Energy Manager/Sustainable Building Pilot Project The goal of the Sustainable Building Pilot Project is to advance initiatives to promote energy efficiency. The project is funded through NRCan and Fortis BC for $86,000 over two years and focused on Multi-Unit residential Buildings (MURBs). Goals include: three developer workshops, a sustainable buildings action plan, address barriers, and a MURB case study. The development sector is on board and the first three deliverables have been met. The MURB case study has been stalled. ( City of Quesnel: Energy Manager This is a Community Action on Energy Efficiency (CAEE) project involving an 18 month pilot program to advance initiatives to promote energy efficiency in the residential and ICI sectors. It is funded through BC Hydro and NRCan and in kind contribution from the City of Quesnel in the form of office space, etc. The budget is $150,000 (includes $15,000 in kind from Quesnel). The goals are: address barriers, provide information (at the pre-permit stage), develop mechanisms to support energy efficiency across all sectors, and set up and maintain a one stop shop of information. The one stop shop has been set up and the activities have been initiated in the community. ( City of Vancouver: Planner 1and Engineer in Training The objective of the Planner was to develop green building policy/strategy over 18 months. This has been completed and adopted by Council. The project cost an estimated $150,000 over 18 months (includes funds for consultancies). The target audience was commercial MURBs and developers. The City of Vancouver also hired an Engineer in training (EIT) to assist with implementation of a new Green Building Bylaw. The role of this position is to co-ordinate bylaw changes across departments and to develop a metric to measure improved energy performance of THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

76 buildings. The position costs an estimated $62,200 per year ( City of Dawson Creek, Development Services The City of Dawson Creek has assigned development services staff to work on implementing the City s Energy Plan through promoting the BC Solar Hot Water project and other initiatives. The staff is allocating approx. 6-8 hours/week to advance energy efficiency ($14,400 (1day/ week) + $7,500 for other costs). Contact: Emanuel Machado, Development Services, (250) Information Programs Description/ Goals: Information programs can take many forms (e.g. one on one, brochures, help lines, websites) and can be stand alone or integrated into a broader policy and strategy. Barriers: Not Applicable Synergies: Municipalities can develop their own information programs or point people in the direction of other programs. Examples: Disseminate energy efficiency information The pre-development permit meeting is a time for developers to feel out the possibilities associated with a site, and learn of restrictions. This is an ideal opportunity for the planner to share information on energy efficient measures and incentives, as well as garner feedback. When trying to promote innovate approaches to site layout and construction it is important to get in front of the development process. The pre-development permit meeting provides this opportunity. This action would be an excellent companion to a one stop shop information resource. Environmental Advisory Committees (EACs) Most municipalities have EACs to help guide decisions pertaining to the city s overall wellbeing. Municipalities could engage these committees in energy efficiency initiatives like setting up a one-stop information shop, promoting energy efficiency among the private sector, and providing input on the city s development and building policies Municipal publications Municipal publications can include information on consumption patterns, information resources and fuel-efficient habits. Information Resources like One Stop Shop A one-stop shop is an information resource, ideally offered as a station near where permits are issued, and/or online and can offer information on: THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

77 energy efficiency incentive programs and rebates, building an energy efficiency home or building, how to improve the energy efficiency of your existing home or building, alternative energy options like solar and geothermal, energy efficiency tips for your home or business, energy efficiency products and technologies, and contact information. The one stop shop is best included as part of an Energy Manager s roles, so there is a person available to answer specific questions and encourage more aggressive action. Information sharing with real estate boards Real estate agents are a key point of contact between land vendors and future developers. Thus they could help disseminate information on energy efficiency incentives and measures. There are 12 regional real estate boards in BC, representing 13,500 realtors. The boards represent both new residential property realtors and commercial realtors. Municipalities could collaborate with their regional real estate board to promote higher performance new construction. For a list of regional boards see G/Rated Portland The goals of G/Rated are to expand market demand for green building and to make green building practices easier to implement. To achieve these goals, the program includes: public education, provision of technical resources and assistance such as a Portland-specific LEED guide, research, case studies, and strategies, and links to incentive programs offered by local organizations (including energy loans, financial and technical assistance, tax credits and consumer rebates). THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

78 4.0 Education 4.1 Building Sector Training Description/Goal: Building sector training is an avenue to build knowledge of and confidence in energy efficient practices. Seminars, workshops, and training modules are effective ways to build capacity for energy efficient new construction. A related tool is creating a stakeholder consultation group, comprised of representatives from the development industry. Most municipalities that have successful energy efficiency programs solicited the input and advice of the development community from the outset, thereby learning about the benefits and the pitfalls together. Barriers: Lack of resources to organize building sector training and an absence of uptake amongst the development sector. Synergies: There are existing training programs already available. As well, some municipalities are currently developing training programs and most are willing to share information and expertise. Examples: Built Green BC/EnerGuide for New Houses BuiltGreen builders must be members of BuiltGreen BC and take the training course. Builders are also trained in EnerGuide and R Contact Jennifer Shaw, Canadian Home Builders Association of BC at or ), JShaw.home@shaw.ca Natural Resource Canada s Office of Energy Efficiency Dollars to $ense Workshops This program can be promoted by municipalities and offers three informative one-day workshops to help an organization improve their operational efficiency, create a better work environment and reduce greenhouse gas (GHG) emissions that contribute to climate change. The workshops are particularly well suited to industrial/large commercial builders and developers. City of Kelowna, Sustainable Building Program The program involved two workshops to involve builders in an energy efficient program for new construction. City of Vancouver: Stakeholder Group of Industry Professionals The Stakeholder Group helped advise City during the development of its Green Building strategy. The process includes a feedback mechanism for ideas/innovations/potential bylaw updates. The goal of the program was to involve the building sector early, to let them know changes are coming, and to engage them in the process. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

79 Green Building Training Modules City of Vancouver (forthcoming) The City of Vancouver will be offering print-based training modules to help educate trades, trade schools, developers, and architects about incoming green building standards in Vancouver. BC Solar Hot Water Program Solar BC is working with Northern Lights college in Dawson Creek, the City of Dawson Creek and the Canadian Solar Industries Association to develop a pilot college program to train new solar hot water installers. Scottsdale Green Building Program Scottsdale, AZ Scottsdale s program is self-described as consumer-driven, and as such, most of its elements are outreach-related. The exception is expedited plan review. The program elements are: Expedited building permit review (most projects reviewed in 50% of the usual time), Education including lectures, workshops, and special events, Provision of promotional packages, including job site signs, green building logos, brochures, abbreviated green building checklists, and media releases, Certification of green buildings, A green homeowners manual, and Recognition of participating builders. An academic review of the program found that it could be improved through stronger incentives and better tracking of the program s environmental impacts. Built Green Colorado This is a voluntary program of the Home Builders Association of Metro Denver with other partners. It uses buyer demand, market education and builder training to encourage green home building. The program is funded by builder member fees and sponsor members. Builders register homes in the program if they qualify by achieving points from those available in a Green Building Checklist. The program includes: Technical support and training, including links to other resources, Independent verification of builder compliance, An awards program, and Marketing assistance lawn signs and information for real estate professionals. 4.2 Training for all Municipal Building Official(s) Description/ Goal: A municipalities building officials serve an independent third party role of monitoring construction for substantial compliance with the B.C. Building Code. Though the Code outlines the minimum standards, a building official educated in high performance buildings can play an important role in information exchange. For example, building officials certified in R standards (for residential) and/or LEED standards (for commercial and MURBs) can THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

80 develop awareness among builders and developers on the advantages of energy efficient measures. Municipalities could consider offering training to its building officials. Barriers: Availability of training/ interest of building officials. Synergies: Municipal officials can attend workshops by NRCan or other organizations. This is a key point of contact for builders and developers and can influence practices significantly. Examples: None were found during research for this project. 4.3 Demonstration Programs Description/Goal: Often taking the form of pilot projects, demonstration programs enable learning by doing. Done collaboratively with the development sector, hands-on learning programs give developers, architects, city planners, engineers, and trades-people an opportunity to test new ideas, challenge existing practices, and monitor successes and failures. Demonstration programs are learning opportunities to test the feasibility of an application or practice and then, if successful, incorporate the energy efficient measure into accepted practices. Barriers: Finding a willing participant can sometimes be a challenge. Tapping the abundant incentive programs and promotional programs already available can alleviate the additional costs of a demonstration program. Synergies: Because they are learning activities, demonstration programs are most effective when involving a wide range of partners/sponsors. Many resources are available, including grant programs, technical expertise, and models of other demonstration programs. A demonstration program would be an ideal task for an energy manager. Part of the energy management tasks would be to engage the building sector, bundle a funding package, promote the demonstration program in the community, and leverage the program s success to solicit additional funding for other programs. Examples: Okotoks Drake Landing The Drake Landing Solar Community is part of the Drake Landing housing development by United Communities in the north east corner of Okotoks, Alberta. 52 houses by Sterling Homes are being built without standard natural gas furnaces and will be heated solely by warm water circulating through insulated, underground pipes of a district heating system. The water will be heated by solar energy. The Drake Landing Solar Community's district heating system is the first major implementation in North America of a proven European technology known as "solar seasonal storage". Solar thermal energy is collected in the summer, stored underground, and THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

81 then returned to the homes as heat during the winter Development or Building Permit Checklists Description/Goal: Builders, as part of the permit process, are required to review and fill out a questionnaire on green attributes and energy-related provisions of their proposed development. The questionnaire provides useful information on a range of green measures, including energy efficiency. Although filling out the checklist would be a required component of the process, developers would not be required to implement any of the measures as a component of getting a permit. The checklist is primarily used as a tool to inform developers of options. Barriers: Filling out the checklist will add some time to the development process but this is not anticipated to be a major barrier. Synergies: N/A Examples: New Westminster The Rezoning and Development Permit application approval requires developers seeking a DP or rezoning to fill out a "Smart Growth Development Checklist". Section 6 is specific to energy. rowth%20development%20-%20checklist% pdf Contact: Planning Department, Port Coquitlam Rezoning and Development Permit application approval requires developers seeking DP or rezoning to fill out a Sustainability Checklist. Section 4c is specific to construction and design. shared/assets/sustainability_checklist2040.pdf Contact: Planning Division, THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

82 5.0 Pricing 5.1 Varied Development Cost Charges (DCCs) Description/Goal: Local governments in BC use DCCs levied on new development projects to cover the capital costs of servicing new development. Allowable DCCs include those that directly offset the capital burden absorbed by municipalities to service new development: sewer, water, storm drainage, road and parkland needed to accommodate growth. There are innovative ways municipalities can vary DCCs by geographic area and building type so as to favour both smart growth and high performance green building design. Though the emphasis for this tool is on water and sewer management, energy efficiency can often be bundled with an overall higher performance design, particularly if the builder opts for LEED standards. Barriers: The Local Government Act provides the legislative authority for levying DCCs, which can only be charged for the incremental costs of specific servicing infrastructure due to the increased demand associated with a new development. Specific infrastructure includes water, sewer, drainage, and roads. Levies for parkland are also allowable. DCCs cannot be charged for operating/maintenance costs, only capital burden absorbed by the municipality to service additional development. DCCs cannot reflect other sustainability considerations such as air quality, energy consumption, support for transit use, or maintenance of water quality, despite their overall benefit to society. Thus, reduced DCCs for energy efficiency would have to be indirectly linked to the incremental capital costs of providing a development with key services (water, sewer and/or storm infrastructure). Development cost charges may represent such a small component of development costs that they do not provide a significant driver. Synergies: Adopting third-party certification standards (i.e. LEED) can ensure green building standards are met (of which energy efficiency is apart) without taxing valuable staff resources. Building labeling programs such as LEED and BuiltGreen BC promote measures that reduce water use and manage storm water, thus reducing the overall servicing requirement for a development. There are many opportunities to leverage funding for the development of new policies and regulations (Real Estate Foundation of BC/ VanCity Green Building Grant Program, BC Ministry of Community Services - Local government planning grant). There are also incentives available for feasibility studies, planning and implementation through FCM. For an excellent source of information on how DCCs can be used to encourage smart growth and high performance green building design, see Do development cost charges encourage smart growth and high performance building design?, a report prepared for West Coast Environmental Law by Coriolis Consulting Corp. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

83 /14083.htm Examples: No implemented examples found. 5.2 Energy Efficient Mortgage Description/Goal: Municipalities can encourage credit unions in their community to offer energy efficient mortgages. Similar to Location Efficient Mortgages offered in the United States, EEMs would allow homebuyers to borrow more for the purchase of a home based on predicted household savings from energy efficient features. When calculating the maximum borrowing amount, banks consider Gross Debt Servicing ratio (monthly housing costs, including heating/ monthly income) and Total Debt Servicing Ratio (total monthly debt/gross monthly income). A homebuyer s GDS must be below 32% and TDS below 40%. The ideal lending system is one where in calculating the homebuyer s GDS and TDS, the lender takes into account the estimated reduction in heating costs as the result of an energy efficient system (i.e. geothermal, solar hot water) thereby increasing borrowing power. Ideally, a condition of the additional borrowing power would be that it must be applied directly toward an energy efficient feature (versus more square footage, which would have the opposite intended effect). For information on the Location Efficient Mortgage: Barriers: The Plan requires financial institutions to partner and they may be reluctant. Synergies: This is a form of offsetting incremental costs of including energy efficient technologies and can work synergistically with other financing and tax incentives. Examples: No examples found at present 5.3 Local Improvement Charge (LIC) Description/goals: A LIC is a voluntary, innovative way for municipalities to cover the capital costs of specific improvements to a site or neighbourhood, and then recover those incremental costs by assessing a LIC to the property owner(s) that benefited from the improvement. The LIC shows up as an additional line item on the property owner s municipal taxes. For example, the incremental costs of upgrading a new home to R-2000 could be covered using LICs. As noted in a Pembina Institute report, the main advantage of using a LIC program over alternative methods of financing energy efficiency improvements is that it associates the repayment of the cost of efficiency improvements with the building property rather than with the current building owner... in the case of new buildings, it allows the additional cost THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

84 of building to the highest levels of efficiency (e.g., LEED Gold or R2000) to be shared by all owners of the building over time. The Pembina report recommends LIC programs operate on a cost-recovery basis. As noted by Pembina, the Community Charter does provide the legislative authority for a municipality to borrow the money for an improvement, and recover those funds through LICs, provided the full costs are to be recovered. It appears this could be applied to energy efficient improvements. See Using Local Improvement Charges to Finance Building Energy Efficiency Improvements A Concept Report, by Pembina Institute. Available at: More recent information indicates that municipalities in BC would need Ministerial approval to implement LICs for energy efficiency 1. Barriers: Cost calculations may be complicated and municipalities may not have the resources required to implement. Synergies: A municipal energy manager could work with the planning department to implement. Examples: No examples found. 5.4 Energy Levy (for municipal utilities) Description/ Goals: Those municipalities with their own electric utility (Kelowna, Nelson, Penticton, Summerland, Grand Forks) could apply hook-up levies to new buildings that only meet basic building standards, paying the levied funds out to new buildings that meet a minimum energy efficiency requirement (i.e. ASHRAE ). Barriers: This approach would require application to the BC Utilities Commission. Synergies: This is a form of offsetting incremental costs of including energy efficient technologies and can work synergistically with other financing and tax incentives. Examples: No examples found at present. 1 Information provided by Andrew Pape-Salmon, MEMPR THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

85 5.5 Financing Incremental Costs of Energy Efficient Measures Description/ Goals: This tool involves a municipality financing the incremental cost of an energy efficient feature (i.e. a ground source close loop system). The municipality would then bill the building occupants over the required number of years for the municipality to recover its initial investment plus a fair rate of return. Occupants could be billed per square foot of space in place of the heating bill from the electric or natural gas utility (with considerable savings). Once the municipality s investment (plus a fair return) is recovered, they could turn the ownership of the system over to the building strata to reap the ongoing, energy-saving benefits. This could also be accomplished by a financing institution offering an energy mortgage. Barriers: Municipalities need to be in a position to finance incremental costs. It should be noted there is potential risk: the builder could go bankrupt resulting in bad debt. As well, a municipality s constituents may be averse to the City entering the business of development finance. Alternatively, the municipality could help broker similar deals between new building developers and other investment sources (e.g. credit unions or private pension funds). Synergies: A municipality is well-positioned to administer this finance system because of billing mechanisms already in place for other services (property tax, water, garbage collection, etc). Examples: Toronto Atmospheric Fund (TAF) Council allocated $23 million from a large property sale to start the TAF in It funds or provides loans to community and City projects meeting its energy- and global warmingrelated mandate, including: Local and global air quality improvement, Energy conservation and efficiency, Public understanding, and Research and technology development. Projects financed by TAF loans have led to $17.5 million in cumulative savings to the City over 10 years, and have reduced CO 2 emissions by 225,000 tons about 50% of the City s total energy-related emissions. It has been a resounding success, at no cost to the taxpayer. VanCity Enterprises Energy Mortgage VanCity Enterprises (VCE), a wholly owned subsidiary of Vancity Credit Union, provides financing for the incremental costs of an energy efficient application. For example, a developer may want to install a geo-exchange system in a new building, yet is not willing to absorb the associated incremental cost (incremental costs without cosmetic appeal are THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

86 difficult to pass on to future buyers). VCE will cover the capital cost and set up a loan with the developer, amortizing the loan over years. The developer would include the terms of the mortgage in the disclosure statement provided to unit purchasers. The disclosure statement is a legal document that discloses all aspects of the property. This statement must be agreed to and signed by the unit purchaser. Typically, upon selling 50% of the units of a new development, the unit owners will form a strata council. At this point, the developer would transfer the energy mortgage to the strata council. The only risk to the developer would be if the units fail to sell. The mortgage payments are set up so they are similar or less than what the unit owner would pay to their utility. Once the mortgage is fully paid, ownership of the asset is transferred to the strata council. VCE is interested in working with more developers on energy mortgages. To qualify, they require a sound business case that shows appropriate payback, proof of ability to service debt, and appropriate information in the disclosure statement. VCE is also interested in working with developers and municipalities on financing a geoexchange field in an undeveloped part of a municipality where a large-scale system would service all new units in the development area. This approach has been used in Verdant at UniverCity (SFU lands), For more information, contact Derek Gent, Investment Manager, Vancity Enterprises at (604) THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

87 6.0 Incentives 6.1 Density Bonusing Description/Goal: Density bonusing is when a municipality permits additional density beyond the zoning allotment, usually in exchange for the provision of an amenity with public benefit. Planning departments can promote energy efficiency by including high performance green buildings as a public benefit (linked to environmental/health benefit), and granting additional density for green building measures. Density bonusing is usually only used in a commercial core, where valuable, revenue-generating space is available in sufficient quantity to invite participation by developers. Barriers: Provisions for density bonusing should be incorporated into the Zoning Bylaw or the OCP. In the absence of density bonus provisions in the Bylaw, builders can agree to green measures at the pre-development stage, but then, upon realizing the incremental costs during the building permit stage, refuse to incorporate such measures, citing the BC Building code as the minimum standard. In addition, the additional density permitted can offset the energy savings of the new features, resulting in an overall larger development, yet no net gain in energy conservation. This approach requires staff training in green building measures and allocation of staff time to develop the provisions for inclusion in the appropriate bylaw. Synergies: The density bonusing process is an ideal situation to introduce the builder to building certification and incentive programs. Utilizing third party labeling programs alleviates the onus on municipalities to train staff in energy efficient measures. Examples: City of Quesnel The Quesnel OCP spells out specific conditions under which it will offer density bonuses in some medium density residential areas under Section (p.16): "Council may consider applications to rezone new areas to allow densities up to 120 dwelling units per net hectare [300 units per net acre] if development meets the following criteria: Must be within a five-minute walk (about 250 metres) of the Downtown core or West Quesnel commercial area, Must provide amenities that may include public gardens, public plazas, playground equipment, public art, pedestrian and bicycle facilities, and other amenities, Primary vehicular access to the development is from a major road that does not require travel through adjacent Low Density Residential Areas, Provision of at-grade parking, under-building parking or underground parking, and Provides a maximum of three stories of residential use. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

88 Note: at present this does not include energy efficiency, nor do other BC examples. Hailey, ID Hailey allows a 10% density increase if alternative energy provides at least 50% of total requirement for the Planned Unit Development (PUD) Awards Description/Goal: Recognizing exemplary practices promotes energy efficient practices, honour s innovative design, and builds a groundswell of support for energy saving buildings. Awards are also opportunities to celebrate success among municipalities, builders, trades people and architects. Barriers: None Synergies: Can be linked to other organizations awards process and can be an important component of a marketing and awareness program. Examples: CHBA and TD Canada Trust s EnviroHome An award designation given to a select number of new home projects across Canada. To qualify, each home must be certified to the R-2000 Standard and include additional air quality and environmental features beyond the R-2000 requirements. City of Issaquah, WA Green Builder of the Year Award Awarded to residential or commercial builders who have demonstrated an outstanding commitment to sustainable development (easily adopted in any municipality). THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

89 7.0 Regulatory Note: the Legislative Authority for the measures in this section is described for each tool. 7.1 Performance-based Approval Process Description/Goal: Planning and building departments can expedite development/building permit application processing if energy efficient measures are included. Legislative Authority: There is nothing in the law precluding a performance based approval process, and indirectly, one can find legislative authority for it. Essentially, this might be accomplished by the local government establishing a policy whereby energy efficient building applications would be placed at the head of the building permit approvals line. This would not mean that non-energy efficient applications would be ineligible for approval, therefore it would neither make energy efficiency a requirement nor place additional standards on buildings contrary to the limitations on authority. With its focus on process and incentives, this is not a classic regulatory tool. It is more a question of City operations - deciding how to prioritize existing staff resources on an operational basis. Further to Section 147 of the Community Charter, the chief administrative officer of the municipality has powers, duties and functions that include overall management of the operations of the municipality. The chief administrative officer must also ensure that the policies, programs and other directions of the council are implemented; so there could be further bolstering of such an operational decision, through specific direction from council. In setting up such a program, a council might be interested in providing additional incentives to encourage energy efficient buildings, through providing free consultation services on how to make a proposal more energy efficient (both Santa Barbara and Issaquah do this in their programs). This expenditure/allocation of additional resources would require planning and approval further to Section 149(d) of the Charter (financial administration position - must expend money in the manner authorized by council) and Section 165 of the Charter (financial plan adopted by bylaw setting out proposed expenditures). One of the features of the Santa Barbara program is a reduced check fee for energy efficient projects that qualify under the program. Further to Section 194(2)(d) of the Charter, municipalities are authorized to establish a discount in relation to payment of a fee for a municipal service, use of municipal property or the exercise of authority to regulate, prohibit or impose requirements. There is a similar power given to regional districts under Section 363(2)(d) of the Local Government Act. These powers would seem to open the door for a local government to establish a fee system that might, for example, set up a reduced fee for a building permit, if the building met certain energy efficient criteria. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

90 Barriers: Requires additional staff resources. Often municipalities already offer expeditious processing as a way to attract development, and it may be perceived negatively to offer a third tier of processing turnaround times. Synergies: Can be linked with other building permit requirements that promote energy efficiency measures (see City of New Westminster s Smart Growth Development Checklist ). Can also link with third party building labeling program to alleviate onus on municipalities to be trained in energy efficient measures. Examples: Innovative Building Review Program - Santa Barbara County, CA Santa Barbara offers a suite of incentives for energy efficiency buildings: Expedited building plan check within 10 working days, Reduction of an Energy Fee by 50%, Information, advice, and design assistance, Links to awards programs, and Links to rebate programs. Issaquah, WA Preferential Building Permit Review Preferential building permit review for commercial projects involving LEED, BuiltGreen (residential), or EnergyStar (residential) AND by using minimum of five incentives offered through the City s incentive program Discounted Building Permit Fees Description/Goal: Municipalities may offer discounted Building Permit or other municipal fees for selected buildings under Section 194 of the Community Charter. Legislative Authority: As above. Barriers: The Permit fees may represent such a small portion of development costs that they are not a sufficient incentive to developers. Synergies: Could be linked with preferential review of energy efficient buildings. Examples: See Issaquah above THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

91 7.3 Minimum Energy Performance Bylaw Description/Goal: Establishing a bylaw that requires minimum energy performance for buildings (i.e. ASHRAE 90.1) levels the playing field for builders while ensuring new construction includes energy efficiency provisions. Vancouver s Building Bylaw requires all new buildings to be built to ASHRAE standards. Legislative Authority: The legislative authority given to most municipalities in the province currently precludes the passage of a minimum energy performance bylaw for buildings, since the municipal exercise of authority under Section 8(3)(l) of the Community Charter [buildings and other structures], which in relation to bylaws that establish building standards is a concurrent authority listed under Section 9(1)(d) of the Charter, is limited by Section 53 of the Charter to an exercise of authority for the health, safety or protection of persons or property. Since a locally established energy efficient standard would constitute a building standard additional to the BC Building Code and not related to health, safety or the protection of persons, it would go beyond a municipality s authority to regulate in relation to buildings. The City of Vancouver has explicit legislative authority to establish an energy efficiency standard. Under the Vancouver Charter, at Section 306(w), Council may make bylaws, (w) for adopting by reference in whole or in part and with any change the Council considers appropriate any codes, standard or rule relating to fire safety or energy conservation or affecting the construction, alteration or demolition of buildings, either in place of or in addition to any regulations provided for in this Part. Barriers: The main barrier to this tool is inconsistency with the BC Building Code and therefore municipalities do not have the legislative authority at present. One way of trying to overcome this obstacle is for a group of municipalities to submit a resolution to the UBCM calling for the Minister of Community Services to grant concurrent authority to municipalities to enact energy efficient requirements for new construction in addition to those in the BC Building Code. Another barrier is a potentially resistant development sector. However, in Vancouver s experience, this was only a problem at first; once builders realized the standards are very achievable, they supported the measure. For communities competing for development with neighbouring municipalities, additional building requirements can be viewed as a disadvantage in attracting development investment. For this reason it is a good idea for municipalities of a region to agree to mutually-support energy efficient measures Synergies: Municipalities could establish a minimum energy performance policy for new buildings on properties that require rezoning (see Rezoning in Incentives). Links well with building labeling programs due to readily available standards and technical guidance. Examples: City of Vancouver s Energy Utilization By-law THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

92 Requires all Part 3 buildings to meet ASHRAE (Energy Standard for Buildings Except Low-Rise Residential Buildings). City of Vancouver s New Buildings Bylaw The City is undergoing bylaw review and update for all Part 3 buildings. The proposed bylaw changes are based on LEED Certified/Silver equivalency. This approach gives the builder the option of pursuing LEED certification. This building standard will be performance based, which eliminates liability for the City. Furthermore it encourages builders to be innovative in meeting building code equivalencies. The challenge is there may be a technology/material/trade expertise shortage until the market adjusts. The City is developing education modules for the development sector (see Education section). Developers will require code consultants for showing equivalencies. The City will require staff trained to sign off on code equivalencies. Pleasanton, California s Green Building Ordinance Requires new civic and commercial projects over 20,000 square feet in size to incorporate LEED green building measures. Other types of projects, such as residential projects, are currently encouraged to incorporate green building measures. Also, as an incentive, the City will reduce scope of compliance review (itself required by bylaw to conform to LEED standards) if the applicant registers with the US Green building council with the intent to LEED certify Service Area Bylaw Description/Goal: This type of bylaw establishes service areas for particular types of energy services (e.g. hydronic heating systems to ensure ease of retrofitting to community energy systems). Legislative Authority: The legislative authority for establishing a local area service is Section 211 of the Community Charter. According to Section 211(1), this can only be done by the methods of a petition in favour (s. 212), a counter-petition (s. 213), or assent of local electors in the local service area (s. 214). Each method is described more particularly in those respective sections. The bylaw establishing the local service area must describe the service, define the boundaries of the service, and identify the methods of cost recovery, including whether it will be recovered by a general property tax (Section 211(2)). If the municipality proposes to enlarge or reduce the local service area, it must again follow one of the procedures for obtaining elector approval from the area to be included or excluded. The City of North Vancouver bylaw is a good example of how a local service area may be set up. Barriers: May be perceived as too prescriptive in terms of technology. Synergies: THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

93 Enabling measures which support future energy efficient developments. If a municipality wishes to purse a district energy system there are planning funds available. Examples: City of North Vancouver Hydronic Heat Energy Service Bylaw 2004, No This Bylaw establishes a service area for hydronic heating, defined by geography and land use intent. The Bylaw requires all new or retrofitted buildings to have hydronic space and water heating systems compatible with and connect to a future district heating system. See CNV Bylaw #7575 > Development or Building Permit Requirements Description/ Goal: Granting of a development or building permit is linked to deployment of energy efficiency measures. Legislative Authority: With the exception of Vancouver, the authority of local governments to establish guidelines for a development permit area that include energy efficiency requirements for buildings, is dubious, or at best, quite limited. Development permit area guidelines, which must be set out in the OCP or zoning bylaw, are the basis upon which local governments are authorized to make decisions on whether to grant or refuse a development permit; therefore, establishing decision criteria for development permits that exceed a municipality s powers would be open to challenge that a development permit was refused on grounds that went beyond the local government s planning authority. Currently (as discussed above under Minimum Energy Performance Bylaw), the municipal power to establish building standards beyond Building Code requirements is limited to passage of concurrent authority bylaws for the health, safety or protection of persons or property, under Sections 8, 9 and 53 of the Community Charter. Since energy efficient considerations do not fall within this limited scope of authority, they would be ultra vires, whether as direct building standards, or as development permit guidelines acting in practice as additional building standards. The most that a local government would appear legally able to do is to outline nonmandatory guidelines, or statements of what is desirable, in keeping with OCP objectives. This is what Victoria did in drafting its Dockside Green guidelines. Through the use of defining language such as must, will and shall, it has specifically tagged what guidelines are mandatory and cannot be negotiated; and for other guidelines, it has used the language of should. Notably, all statements in the DP Guidelines regarding LEED standards are framed as should guidelines. Note, however, that in the Master Development Agreement between the City and the developer, the developer has posted a financial security that the City may have recourse to, if the commitments of the development are not met by the developer. (Dockside Green Development FAQs, City of Victoria website) THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

94 In addition, DPA Guidelines might establish energy efficiency considerations that do not trample into unauthorized building standards. For example, for the purposes of establishing objectives for the form and character of an intensive residential development, or a commercial, industrial or multi-family residential development, local governments can establish requirements vis-à-vis landscaping, and the siting, form, exterior design and finish of buildings and other structures, each of which might have some effect on energy efficiency. However, for commercial, industrial or multi-family residential developments, while a development permit may include requirements respecting the character of the development, these must be limited to the general character of the development and not to particulars of the landscaping or of the exterior design and finish of buildings and other structures. The authority to establish a development permit area for preservation of the natural environment is a power that is intended to be limited to protecting specific features within a DPA bluffs, gullies, rock outcroppings etc. as opposed to achieving more general environmental objectives such as the protection or management of the cutting of a forest that spans a significant tract of land. See Denman Island Local Trust Committee v Investments Ltd. (2001), 96 B.C.L.R. (3d) 253 (C.A.). The Vancouver Charter Section 565A authorizes council to require a development permit, and provides that it may be time limited and subject to conditions. Unlike the Community Charter, there are no limitations on the kinds of conditions authorized. Barriers: Staff time is required to establish the questionnaire and establish requirements. Synergies: This tool is an excellent opportunity to inform builders of labeling programs, incentives, education resources, and best practices, and innovative approaches of builders in other jurisdictions. Examples: Green Points Program Boulder, CO Boulder s program is a requirement, in this case applying to new residential construction or renovations over 500 sq. ft. In order to receive a building permit, the design must incorporate features corresponding to a certain number of points in the Green Point Checklist. Boulder provides information on some construction practices, and links to green certified professionals. 7.6 Energy Bylaws Description/Goal: A bylaw that requires a specific energy efficiency application in all new buildings (i.e. solar hot water systems). Alternatively, the bylaw could require all new buildings to be solar hot water ready (at a very small incremental cost to the builder at the time of construction). Legislative Authority: THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

95 With the exception of Vancouver, the legislative authority given to municipalities in the province currently precludes the passage of a minimum energy performance bylaw for buildings, since the municipal exercise of authority under Section 8(3)(l) of the Community Charter [buildings and other structures], which in relation to bylaws that establish building standards is a concurrent authority listed under Section 9(1)(d) of the Charter, is limited by Section 53 of the Charter to an exercise of authority for the health, safety or protection of persons or property. It is extremely unlikely that a municipality or a court would accept an argument that a requirement for an energy efficiency application (e.g. installation of a solar hot water heater, is sufficiently related to health and safety to qualify as a legitimate exercise of this authority) even if one attempted to cast a broad argument that avoiding thermally generated heat reduces climate change risks or means better air quality for the health of the community s citizens. Regional districts under the authority of Sections and 694 of the Local Government Act are similarly restricted to passing building bylaws limited to being for the health, safety or protection of persons or property. They can only do so as a concurrent authority with the province, and they can only do so if they have first decided to provide a building inspection service in the regional district. As noted above, the City of Vancouver on the other hand, has explicit legislative authority to establish an energy efficiency standard. Under the Vancouver Charter, at Section 306(w), Council may make bylaws, (w) for adopting by reference in whole or in part and with any change the Council considers appropriate any codes, standard or rule relating to fire safety or energy conservation or affecting the construction, alteration or demolition of buildings, either in place of or in addition to any regulations provided for in this Part. Barriers: The development sector may be resistant. This can be addressed by bundling the bylaw with information on incentive programs. An energy manager can also help with this. In addition to BC Building Code standards. Synergies: Links well with building labeling programs due to readily available standards and technical guidance. Opportunities to leverage funding for the development of new policies and regulations particularly those related to specific technology deployment exist. Examples: Barcelona, Spain, Solar Thermal Ordinance (Solar Hot Water) The Solar Ordinance affects newly built, rehabilitated and fully reformed buildings and those seeking to implement a change of use, with a forecasted volume of sanitary hot water demand equal to an average annual energy consumption of over 292 net mega joules (MJ). Between Aug 2002 and December 2004, 327 buildings affected, 24,531 new square metres of solar heat-capture surface area (an increase in 1400%), producing estimated energy savings of 19,625 MWh/year, 3,451 tonnes of CO2e emissions per year. Monitoring conducted through the Barcelona Energy Plan. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

96 Solar Access Policies City of Sarnia Unplanned development can lead to shading, rendering a solar energy system ineffective and/or minimizing the heating benefits of passive solar gain (free heat and light). The City of Sarnia established the policy, but has not yet implemented it in the zoning bylaw. There are no regulations or performance standards yet. The City encourages developers to look at that solar access/capture design at the development permit stage on a voluntary basis. 7.7 Rezoning Description/Goal: When developers want to develop a parcel for purposes other than its zoned use, rezoning is required. A municipality can stipulate additional requirements in exchange for rezoning (i.e. energy efficient building features). Another way to secure energy efficient features in exchange for rezoning is a restrictive covenant, which is essentially a private contract between the municipality and the developer. Section 219 of the Land Title Act permits the use of restrictive covenants. A covenant tailored to include energy efficiency provisions could ensure the structure is built on the land in accordance with the terms of the covenant. The covenant could include the energy efficient features the municipality requires of that building (i.e. ASHRAE 90.1, R-2000, etc.). Legislative Authority: Zoning powers fall under the Local Government Act, and the Act provides no legislative basis for a local government to stipulate additional requirements for granting a rezoning. Local governments therefore do so at peril of challenge. In fact, the courts have recently held that while a local government may bargain in a limited way (require amenities or affordable housing) in exchange for land density (further to the density bonus provisions set out in Section 904 of the Local Government Act), a local government is not authorized to bargain, or make deals, in exchange for rezoning. The decision in Lambert v. Resort Municipality of Whistler, 2004 BCSC 342 struck down a rezoning where the court found that the municipality had done just that - granted the rezoning as a bargain in exchange for the provision of certain community amenities. By analogy, it therefore appears that a local government has no authority to stipulate additional requirements, such as energy efficient features, in exchange for rezoning. It is suspected that the rule would apply with even more force, if the condition was one that the local government was otherwise unauthorized to require or set, as in the case of an energy efficient feature (Vancouver being the exception see discussion of Energy Bylaws). A local government is not authorized to do indirectly that which is not authorized to do directly. Looking at other case law, however, it appears that local government staff do have the power to require a rezoning applicant to prepare a satisfactory development plan and to provide a Section 219 (Land Title Act) restrictive covenant and the builder s agreement to abide by the development plan, in order to secure the local government staff s favourable recommendation to Council for its consideration of the zoning: Burnaby (City) v. Racanelli (1998), 45 M.P.L.R. (2d)117 (B.C.S.C.). Such a bargain cannot contractually bind Council to provide the rezoning if the covenant is provided, but the court does apparently allow this bargaining by staff for developers to obtain the staff s blessing on a project. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

97 Barriers: Lack of staff expertise in energy efficiency; however this can be overcome by using a third party certification system. Staff resources to draw up covenants may also be an issue. However, interested municipalities could pool resources and come up with a boilerplate covenant specific to energy efficient new construction. Synergies: Opportunities to leverage funding for the development of new policies and regulations. Examples: The City of Vancouver- Zoning The City of Vancouver now considers green building a public benefit, so the City can request green building measures in exchange for rezoning. The City ensured this was allowable by clearing through their law department. Municipalities considering this measure may want to do the same. For the City to consider a rezoning application, the developer has to show how rezoning benefits the public. Ways to do this include providing public good (i.e. green building design) or public amenity (i.e. daycare, parkspace). The City s legal department established green building as a public benefit, so this is one more way developers can show public benefit to secure a rezoning permit. THE SHELTAIR GROUP: Local Government Action on Energy Efficiency in New Buildings Part 2: Measures, May 3,

98 CITY OF VICTORIA SUSTAINABLE BUILDING POLICY REVIEW PRIVATE SECTOR DEVELOPMENT APPENDIX C City of Seattle Density Bonus Brochure

99 city green building City of Seattle Department of Planning & Development 2006 DENSITY BONUS INCENTIVE The Density Bonus incentive offers downtown commercial, residential and mixed-use developments greater height and/or floor area if a green building standard of LEED Silver or higher is met. for more information contact Peter Dobrovolny, City Green Building t e peter.dobrovolny@seattle.gov downtown zoning ordinance LEED incentive On April 12, 2006, Mayor Nickels signed new downtown zoning legislation. The complex package of regulations, adopted by City Council April 3, updates rules for the central office core and adjoining areas, including Denny Triangle and a portion of Belltown. Changes in the new regulations were made to provide greater heights and/or greater floor area for commercial and residential buildings. To gain greater height or density, projects must achieve a LEED Silver rating, as well as contribute to affordable housing and other public amenities. The zoning changes also offer greater transferable development rights for historic structures. The LEED incentive was incorporated as part of a package of public amenities that mitigate the impacts of growth by protecting the environment, conserving natural resources, and promoting public health, safety and welfare. LEED encourages an integrated design process and establishes performance goals in the form of credits for sustainable site development, water savings, energy efficiency, materials selection, indoor environmental quality, and process and innovation. Points are awarded for the credits achieved. There are four progressive levels of certification: Certified, Silver, Gold and Platinum. LEED standards have been developed for specific sectors of the market. The Downtown Zoning Ordinance allows owners and developers to use either the LEED for New Construction (LEED NC) or LEED for Core & Shell (LEED CS) products. LEED NC covers all building elements, including core and shell and interiors. LEED CS covers base building elements (structure, envelope and systems), and recognizes the division between owner and tenant responsibility for design and construction, where the owner develops the base building, and the tenant builds out the commercial interiors. density bonus incentive process There are two steps to the Density Bonus incentive process: 1. The developer / owner (applicant) must submit a letter of intent that communicates their commitment to achieve a LEED Silver, Gold or Platinum rating on their project before issuance of the Master Use Permit. The City will then issue subsequent permits and the final Certificate of Occupancy based on this good faith commitment. 2. Within 90 days of receiving the final Certificate of Occupancy, the applicant must submit documentation that demonstrates achievement of a LEED Silver rating or higher. penalties for non-performance If the applicant fails to submit a timely report, or demonstrate performance (earn a LEED Silver rating or higher) will result in a penalty. The penalty for failure to submit a timely report is $500 per day from the date due, 90 days after issuance of final Certificate of Occupancy. Failure to demonstrate performance will also result in a penalty. Performance must be demonstrated through an independent report provided by the U.S. Green Building Council that confirms achievement of at least a LEED Silver rating. The calculation for the penalty is as follows: P=[(LSM-CE) / LSM] x CV x 0.75% P is the Penalty; LSM is the LEED Silver Minimum, the minimum credits needed to earn a LEED Silver rating; CE is the Credits Earned as documented through the report; and CV is the Construction Value as set forth on the building permit for the new structure. Example: CV = $200,000,000; LSM = 33; CE = 32 P= [(33-32) / 33] x 200,000,000 x = $45, All penalties collected will contribute to a Green Building Fund dedicated to supporting market adoption of green building.