Report Template

5. LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN (LEED) PROMOTION PILOT PROGRAM

PROGRAMME PILOTE DE PROMOTION DU SYSTÈME LEADERSHIP EN MATIÈRE D'ÉNERGIE ET D'ENVIRONNEMENT (LEED)

Committee recommendation

That Council approve the Leadership in Energy and Environmental Design (LEED) promotion pilot program.

Recommandation du Comité

Que le Conseil approuve le programme pilote de promotion du système Leadership en matière d'énergie et d'environnement (LEED).

Documentation

1. Deputy City Manager's report Planning, Transit and the Environment dated 27 November 2007 (ACS2008-PTE-ECO-0005).

2. Extract of Draft Minutes, 8 January 2008.

Report to/Rapport au :

Planning and Environment Committee

Comité de l'urbanisme et de l'environnement

and Council / et au Conseil

27 November 2007 / le 27 novembre 2007

Submitted by/Soumis par : Nancy Schepers, Deputy City Manager/

Directrice municipale adjointe,

Planning, Transit and the Environment Management/

Urbanisme, Transport en commun et Environnement

Contact Person/Personne ressource : Carol Christensen, Manager/Gestionnaire, Environmental Sustainability/Durabilité de l’environnement, Economic and Environmental Sustainability/Viabilité économique et de la durabilité de l’environnement

(613) 580-2424 x21610, Carol.Christensen@ottawa.ca

City-wide

Ref N°: ACS2008-PTE-ECO-0005

SUBJECT:	Leadership in Energy and environmental design (LEED) PROMOTION PILOT PROGRAM

OBJET :	PROGRAMME PILOTE DE PROMOTION DU SYSTÈME LEADERSHIP EN MATIÈRE D'ÉNERGIE ET D'ENVIRONNEMENT (LEED)

REPORT RECOMMENDATION

That Planning and Environment Committee recommend that Council approve the Leadership in Energy and Environmental Design (LEED) promotion pilot program.

RECOMMANDATION DU RAPPORT

Que le Comité de l'urbanisme et de l'environnement recommande au Conseil d'approuver le programme pilote de promotion du système Leadership en matière d'énergie et d'environnement (LEED).

EXECUTIVE SUMMARY

Assumptions and Analysis:

Planning and Environment Committee has requested that staff investigate options for providing incentives for promoting the Leadership in Energy and Environmental Design (LEED) rating system in the private sector.

LEED or green buildings provide a number of private and public benefits including less energy consumption, less potable water use, less solid waste, healthier indoor environments, and less overall environmental impact. Building to a LEED standard is increasingly seen as good business, and good for the community.

Municipalities are therefore interested in promoting LEED and, as in the case in Ottawa with the City Green Building Policy, this often starts with municipal construction projects. While there are some incentive programs in Canada, most interested municipalities are in the exploratory stage. There are many more active programs in the United States. Measures include providing information resources and guidelines, applying checklists and "green" approvals streams in the approvals process, fee rebates for LEED projects, bonuses such as increased density for LEED projects, and money for design assistance and certification expenses.

LEED projects are now appearing in Ottawa with 14 projects currently certified or registered on the Canada Green Building Council web site. These include City building projects under the City Green Building Policy, institutional projects such as the new CUPE headquarters and the new Rideau Valley Conservation office, and multi-residential projects such as the Currents on Wellington Street and development at LeBreton Flats. LEED is becoming a market driven initiative and a business case can be made that the incremental cost for building LEED projects is returned in lower operating costs and market advantage. In the low rise residential sector, Energy Star or R2000 housing is also becoming more of a market standard.

In recognition of the public benefits of LEED projects and the business case that can be made for LEED standards, a pilot promotion program is proposed that involves four components:

Development of a Green Building checklist based on the approved City Design Framework to monitor and assess green building progress,

Assessment of opportunities to promote green buildings through planning policy as a component of the review of the City Official Plan in 2008,

A Green Pathway LEED Pilot Project which will accept three LEED projects for design assistance and analysis and application of an integrated approvals process, and

Promotion and education through the design assistance program, a lessons-learned report and promotion on the City web site and through the Ottawa Design awards.

Financial Implications:

The $130 000 in funding for the design incentive pilot program, promotion, and analysis of the pilot project results was included and approved as part of the 2008 Capital Budget.

Public Consultation/Input:

Consultation will occur throughout the pilot project. To date, informal consultation has occurred to gain insight on potential approaches.

RÉSUMÉ

Hypothèses et analyse :

Le Comité de l'urbanisme et de l'environnement a demandé que le personnel étudie des options visant à fournir des mesures incitatives pour la promotion du système d'évaluation LEED dans le secteur privé.

Les bâtiments LEED ou écologiques offrent de nombreux avantages privés et publics, notamment une consommation d'énergie et une utilisation d'eau potable moins grandes, une réduction des déchets solides, des milieux intérieurs plus sains et un impact global plus faible sur l'environnement. La construction qui respecte les normes LEED est de plus en plus considérée comme une pratique saine pour les affaires et aussi pour la collectivité.

Par conséquent, les municipalités sont intéressées à promouvoir le programme LEED et, dans le cas d'Ottawa et de sa politique sur les bâtiments écologiques, cela commence souvent par les projets de construction municipaux. Même s'il existe au Canada quelques programmes incitatifs, la plupart des municipalités intéressées en sont encore à l'étape exploratoire. Il y a de nombreux programmes plus actifs aux États-Unis. Les mesures incluent les suivantes : fournir des lignes directrices et des ressources liées à l'information, appliquer des listes de vérification et des courants d'approbations « écologiques » au processus d'approbation, en plus des rabais pour les projets LEED, des primes, par exemple pour l'intensification des projets LEED, et des fonds pour l'aide à la conception et les dépenses liées à l'accréditation.

Les projets LEED commencent à voir le jour à Ottawa : il y a, en effet, 14 projets actuellement accrédités ou inscrits sur le site Web du Conseil du bâtiment durable du Canada. Ces derniers incluent les projets de construction de la Ville régis par la Politique de cette dernière sur les bâtiments écologiques, les projets institutionnels comme le nouveau siège social du SCFP et le nouveau bureau de l'Office de protection de la nature de la vallée Rideau, ainsi que des projets d'immeubles à logements multiples, par exemple les copropriétés « The Currents » sur la rue Wellington et le nouvel ensemble résidentiel sur les plaines LeBreton. Le système LEED est en train de devenir une initiative axée sur le marché, et on peut établir un plan de mise en œuvre où le coût différentiel de la construction de projets LEED se traduit par des coûts d'exploitation moindres et des avantages commerciaux. Dans le secteur des résidences basses, les maisons Energy Star ou R2000 sont également en train de devenir une norme du marché.

Dans le but de reconnaître les avantages publics des projets LEED et du plan de mise en œuvre qui peut être élaboré pour les normes LEED, on propose un programme pilote englobant les quatre composantes suivantes :

Élaboration d'une liste de vérification relative aux bâtiments écologiques fondée sur le Cadre de conception approuvé de la Ville, dans le but de suivre de près et d'évaluer les progrès réalisés en matière de bâtiments écologiques;

Évaluation des occasions de promotion des bâtiments écologiques, par le biais d'une politique de planification, comme élément de l'étude du Plan officiel de la Ville en 2008;

Projet pilote de facilitation du processus de développement écologique LEED qui acceptera trois projets LEED en ce qui a trait à l'aide à la conception, ainsi qu'à l'analyse et à la mise en œuvre d'un processus intégré d'approbations;

Promotion et sensibilisation par le biais du programme d'aide à la conception, d'un rapport sur les leçons apprises, ainsi que de la promotion sur le site Web de la Ville et par le biais des Prix de l'esthétique urbaine d'Ottawa.

Répercussions financières :

Le financement (130 000 $) du programme pilote d'incitatifs à la conception, à la promotion et à l'analyse des résultats du projet pilote a été approuvé et inclus dans le budget des immobilisations de 2008.

Consultation publique et commentaires :

Il y aura des séances de consultation tout au long du projet pilote. Jusqu'à présent, nous avons procédé à une consultation amicale afin d'avoir un aperçu des approches potentielles.

BACKGROUND

On March 9, 2007, Planning and Environment Committee directed staff to investigate the establishment of incentives specifically aimed at encouraging the construction of buildings that achieve a LEED designation and report back on findings and recommendations. There has also been direction to explore promoting green roofs, one of the green building technologies which can contribute to LEED credits.

Staff have completed an initial review of work elsewhere on LEED incentives and promotion and had some preliminary discussions on possible approaches. This report recommends an initial program consisting of four components which will allow the City to begin promoting LEED and Green Building in the private sector through a pilot project and analysis. The initial program is designed to assess green building measures and approaches in Ottawa and determine the most constructive role for the City to play within the context of actual LEED building projects.

It is also important to note that the City has shown leadership in its own buildings through the Green Building Policy and the installation of a green roof. This leadership now sets the stage for a more active role in community and private sector promotion of green building approaches including green roofs and LEED.

DISCUSSION

LEED and Green Buildings

Green buildings are designed to achieve high levels of environmental performance in design, construction and operation within the context of economic and social considerations. Energy, water and resource efficiency, occupant comfort and well-being, site development and community context, and the economics of building construction and operation are all considered Green buildings take advantage of natural processes to generate less waste, less pollution, and reduce their overall environmental footprint, and may:

Use access to natural daylight to reduce energy costs and improve health and productivity

Use natural ventilation strategies to reduce mechanical costs

Use landscaping and plants to shield buildings from wind and sun, thereby reducing heating and cooling costs

Harvest rainwater or recycle grey water to irrigate lawns and flush toilets.

Incorporate passive solar technology such as "solar walls" to reduce energy use

Use renewable energy technologies including solar hot water and geothermal heating and cooling

Green buildings can contribute to reduced demand on municipal infrastructure for servicing, transportation and energy. They can also make a major contribution to meeting City environmental objectives. For example, 58 per cent of the community green house gas emissions (GHG) in Ottawa can be attributed to energy use in the building sector so efforts to reduce the footprint and resource consumption of the building sector is a critical component of any GHG reduction strategy. It has been suggested that improvements in energy use in existing and new buildings are one of the easiest and most cost effective ways to reduce GHG emissions.

Meeting GHG reduction targets at a corporate level has proven to be attainable due in a large part to the degree of control the City has over its own operations and building practices. The City Green Building Policy and its use of LEED is a case in point. At the community level, progress is more difficult and is compounded by the lack of direct control the City may have over reduction measures. Creative and incremental approaches are therefore required in partnership with stakeholders in the community.

LEED projects provide environmental, economic and social benefits. Successful Leadership in Energy and Environmental Design (LEED) projects have resulted in:

50 per cent reduction in energy use
40-50 per cent reduction in water consumption
50 per cent sewer wastewater reduction
20-100 per cent reduction in stormwater runoff
75-90 per cent construction and demolition waste reduction
60 per cent operational waste reduction
Reduced Greenhouse Gas (GHG) emissions (up to 60 per cent less GHGs)
Improved indoor environmental quality
Local economic development in the growing green building sector
Lower operating costs
Increased profitability and/or return on investment

A LEED building may reduce City infrastructure costs, provide some indirect public benefits depending on the technologies/measures used, and further City design objectives depending on the LEED credits obtained. The City has a direct interest in some of the LEED credits. While all green building measures such as internal air quality are of interest to the City in terms of quality of life and resident’s health, some credits have a direct bearing on City infrastructure responsibilities and capital spending. In some cases, Green building measures on a cumulative basis will save the City infrastructure dollars. These include credits related to:

Reduction of construction waste and provisions for recycling
Provisions for encouraging walking, cycling and transit use
Potable water efficiency and conservation
Reduced stormwater run-off
Reduced energy consumption

LEED provides assessment systems at a range of scales and building types. There is LEED for:

Ø Neighbourhood development (community planning scale)

Ø New Construction (larger commercial, institutional, multi-residential buildings)

Ø Homes (Low rise residential)

New construction of larger buildings (primarily commercial including multi-residential and institutional) can now be assessed through an approved Canadian version of LEED NC (new construction) while the LEED for Homes and LEED for Neighbourhood Development rating systems are currently in the pilot project stage in Canada. While these systems operate at different scales and target different development types, there are common characteristics and assessment categories. The LEED for New Construction checklist is included as Document 1. This system has been previously described in some detail in reports to City Council as a result of the City Green Building Policy which applies LEED standards to new City construction.

Green roofs have a number of benefits which contribute to LEED credits including reducing storm run-off from more frequent storms, reducing heating and cooling costs through improved insulation, and reducing ambient air temperatures thereby reducing the urban heat island effect.

In Ottawa, green buildings are now becoming more commonplace. There are currently 14 registered LEED projects (on the Canada Green Building Council web site) with some highlights listed below:

City Building Policy requires all new buildings larger than 500 square metres to be LEED certified
The City Paramedic headquarters has achieved LEED certification.
Public Private Partnership (P3) projects have been applying LEED with the Orléans Arts Centre targeting a LEED Silver rating.
A number of office complexes have registered for LEED including the new CUPE headquarters, RVCA headquarters, Telus Building, Minto Building at 180 Kent.
Residential/mixed use LEED projects include the Currents Project (home of the GCTC and a potential LEED Gold building), the eco cité project on Bank Street across from Lansdowne Park, and development at LeBreton Flats.
Canada Lands is planning to pilot the LEED ND (Neighbourhood Development) system in the Rockcliffe redevelopment .

For low-rise residential construction, Energy Star homes provide a selection of energy saving features such as extra insulation, more energy efficient windows, and Energy Star appliances. Ottawa is known as an Energy Star leader in Ontario with most residential developers offering Energy Star options and some builders providing Energy Star exclusively (e.g. Tamarack) or within a particular development (e.g. Jackson Trails by Tartan homes)

The R2000 standard includes a broader range of environmental requirements (for example, environmentally friendly materials) which go beyond energy savings and also involves a more rigorous testing and certification system with each residential unit being tested. Some development companies are providing R2000 housing and Urbandale has made a recent commitment to construct a substantial portion of their new housing to an R2000 standard.

There has also been a pilot "equilibrium" or net zero-energy house (a CMHC sponsored competition) designed in Ottawa by Minto developments. LEED for homes builds on these systems by including credits related to community design and location which look beyond the environmental features of the individual home.

Green building and use of rating systems such as LEED (as a design tool if not an actual certification process) is increasingly seen as good business. The benefits in terms of productivity, reduced operating costs, and market advantage in terms of lease and resale values are proving to be greater than the initial additional capital cost. It is therefore difficult to justify simple subsidies or direct financial incentives for simply building LEED projects. In fact, LEED will not continue to expand if there is not a business case. The challenge is determining what the most constructive role is for the City to play in helping to grow the industry and acknowledge the public benefits of these projects.

Green Building Incentives:

Measures encouraging or promoting green building measures fall into several categories:

1. Education through Green Design and Building Resources.

· A number of municipalities provide web links and production of material for distribution on green buildings

2. Public Sector Leadership.

· Willingness to adopt green building technology and green design in the public sector is a prerequisite to community promotion.

3. Green building approvals process.

· This requires some agreement on what kind of projects would get special treatment, and how this would work. Some municipalities offer a LEED resource person to assist design teams, and expedited approvals processes.

4. Design Assistance Programs.

· These programs provide resources (for example some money to cover additional design and certification costs) to support the integrated design process and certification.

5. Direct Incentives.

· These programs provide direct grants to offset additional building costs for measures such as Green Roofs.

6. Fee and charge rebates.

· These programs provide reduced fees or development charges for Green Projects.

7. Regulation.

· Some additional tools are emerging from recent changes in the Planning Act and the building code is changing to improve energy efficiency components. Additional regulatory measures will require changes to the Official Plan and discussion with the development community.

8. Guidelines and checklists.

· These measures involve tools to ensure that green design measures are considered in the development process. It ensures that the "have you considered" questions are asked, that creative green design solutions are on the table, and that good green development is promoted and rewarded.

9. Review of bylaws and practices.

· Some municipalities have reviewed existing bylaws and standards to explore changes that could incrementally move building standards towards LEED levels.

Document 2 provides a summary of municipal incentive and programs elsewhere. Programs are most common in the United States where LEED has been in place longer. Municipalities such as Chicago and Seattle have incentive programs, which include expedited approvals processes, fee rebates, technical support and direct incentive dollars. Some U.S. cities such as Boston have taken the step of requiring LEED standards through municipal regulations. In Canada, programs are much less common but a number of municipalities are examining options and have put in place some initial incentives. Examples include:

Calgary which provides building permit fee rebates based on the LEED level obtained
Vancouver which has reviewed and adjusted municipal codes and standards in an effort to achieve LEED standards through municipal regulations
Toronto which has developed their own Green Development Standard and has established an ongoing incentive program for Green Roofs

In Ontario, a number of municipalities including Caledon, London, Pickering, Burlington and others are at a similar stage as Ottawa in that they are exploring options and completing background work.

Proposed LEED Promotion Pilot Program

There is a business case for LEED and Green Buildings and there is now a proven track record and considerable market penetration in some cities. The Green Building industry has advanced that the cost premium is now in the two-five per cent range for certified/silver with demonstrated pay-back so direct incentives for simply building green should not be necessary.

Regulatory options are limited in that the powers under the Planning Act and standards under the Building Code are established at the Provincial level and, unlike some other jurisdictions, the City cannot set environmental performance measures related to such green building strategies as insulation, daylighting, mechanical systems, and materials use which exceed those standards. However, recent changes in the Planning Act have expanded municipal powers to address some aspects of green buildings as they relate to building exteriors such as green roofs.

There may be some opportunities to provide targeted incentives for specific measures that can help the City reduce infrastructure costs and address infrastructure issues but additional work is required to assess what measures may be considered and how to target any incentive programs. Current City studies and policy development in areas related to servicing, waste management in the ICI sector, and stormwater management policy all are looking at the contribution of green buildings. For example, the potential of using green roofs to meet stormwater objectives and address extraneous flows is being explored. In addition, the recent Brownfields Strategy included LEED design certification expenses as eligible expenses. Providing an incentive to simply build a LEED building may or may not result in reduced costs to the City depending on the LEED credits incorporated in the design. It is also important to note that some LEED credits rely on ongoing operating practices which must continue after any approval and construction stage for benefits to be realized.

The City has a direct role to play as an approvals authority under the Planning Act and related legislation such as the Building Code. Any measures the City can take to ensure that Green Building projects are dealt with efficiently would be beneficial. Other municipalities have created “green” approvals streams with either expedited approvals processes or special approvals “teams” to address more innovative green building projects and these measures are mentioned frequently as obvious high value incentive approaches.

LEED buildings will need to go through a development approvals process regardless and are unlikely to constitute a large approvals workload initially so a separate integrated “Green Path” in approvals should be relatively manageable, particularly as a pilot project. The City approvals and permitting process already works on an aggressive and tight timeline, and staff are becoming more familiar with green building projects and LEED. Building Code Services also has a program in place for dealing with new and innovative technology in the permitting process. However, concerns with moving green buildings through the approvals process have been raised so the approvals process should be reviewed by stakeholders to allow the City to assess if a "green" approvals process would be helpful, and manageable from a resource perspective.

The City also has an interest in learning more about costs/benefits and potential value of City interventions and actions, as well as an interest in the design process and good urban design as outlined in the Official Plan.

Staff involvement in the design process of some pilot projects would allow the City to become more knowledgeable about improving the integrated design process and promote credits of particular interest to the City including green roofs.

Given these observations, it is proposed to initiate a LEED promotion pilot program in 2008 with four components.

1. Design and application of a Green Building Design Checklist

As a part of the pilot program, a Green Building design checklist will be designed based in the approved Design Framework in Annex 3 of the Official Plan. The checklist would be used as a tool in the development approvals process to ensure that the objectives in the Design Framework are considered during development approval, and to begin to monitor the extent that sustainable design and green building measures are being incorporated into development and which measures are being considered and why. The checklist would be designed to be relatively easy for a proponent to complete at the pre-consultation stage of development, and update at the final approval stage. It would also serve as a tool to track consideration of green roofs which have not to date been prominent in private development applications. It will be developed during the pilot program period in consultation with stakeholders and applied to the pilot projects as well as other development proposals.

2. Reviewing Green Building Measures in the context of the Official Plan review

Many of the measures involved in green building and LEED are beyond the regulatory powers of the municipality. The City cannot establish its own building standards beyond those in the Building Code, and cannot regulate design matters that are beyond those empowered in the Planning Act.

Recent amendments to the Planning Act and the Provincial Policy Statement do provide some additional tools. The recent Community Improvement Official Plan Amendment established as part of the Brownfields Strategy incorporated one new tool in that energy efficiency and environmental measures are listed as a rationale for improvement programs. Other new tools require some changes in Official Plan policy which would logically be discussed during the upcoming Official Plan review. Examples include:

Increased authority to regulate building exteriors during the site plan approval process
Conditional zoning and use of density bonuses

Potential Green Building policy measures will be identified and discussed during the Official Plan review.

3. Green Pathway LEED Pilot project

This is a program to provide design and LEED certification assistance to projects that will commit to LEED and an open design process including cost/benefit analysis and design charette. The City would provide some design assistance dollars, assist in the LEED certification process, and commit to an “integrated approvals process” with priority consideration.

This project will provide an opportunity to explore several green building tools in the context of actual building projects rather than the abstract. During the pilot projects, the integrated approvals team would look closely at the development approvals process to identify opportunities to provide additional assistance in terms of the process and timing to LEED projects. It will also provide an opportunity to explore City regulations and standards to see if there are any obstacles to green building measures, or any ability to adjust City requirements, within the context of legal empowerment and authority, to move closer to LEED or green building standards. Finally, it would provide an opportunity to complete some staff training and education through the use of practical case study information. Greater staff awareness and familiarity with green building approaches and LEED will also assist promotion and approval of LEED standards. All of these benefits would be more meaningful in the context of the practical case studies or pilot projects.

A proponent would commit to:

Registration of the project for LEED with a minimum target of LEED Silver with the following additional (above the current LEED) pre-requisite credits:

– Waste Management (75 per cent reduction)

– Water Conservation (30 per cent reduction)

– Energy Management (40 per cent reduction)

– Heat Island Effect roof

Participation in a design workshop including City staff

Allow for use of the design process and information in a cost/benefit analysis and lessons learned report to be prepared by the City

The City would commit to:

Provide for an integrated approvals team and priority service

Provide funding of $25 000 per project to assist with:

Ø LEED registration costs

Ø Design Charette costs

Ø LEED certification costs

Ø Extra design costs related to energy modelling and daylight and materials analysis

An additional $10 000 would be provided to a project that meets the Heat Island Roof credit through the use of a Green Roof.

The program would accept three projects as follows:

1. LEED New Construction office/commercial building

2. LEED New Construction multi residential building

3. LEED for Homes pilot

Projects would have to otherwise conform to the policies and permitted use provisions in the Official Plan. Brownfield projects would not be eligible if they are participating in the Brownfields program which includes similar incentives for design/certification expenses.

After the pilot projects are complete, a lessons-learned report including cost benefit information will be completed along with recommendations for the most constructive and cost-effective approach to ongoing municipal promotion of green building technologies, green roofs, and the use of the LEED rating system.

4. Education/Promotion

While there is considerable material available, some customizing will be required to focus on elements of particular interest in Ottawa, and promote and disseminate the results of the pilot project. There will be a project initiation forum, report on lessons learned and potential future options, and a one-day workshop and evening forum on the results of the project and possible future measures. Pilot projects will also be profiled and promoted on the City web site. City staff will also look at ways to increase the profile of environmental measures within the Ottawa Urban Design awards

Conclusion

Environmental performance of buildings, and sustainable site design, has significant public and private benefits that will only increase as resource costs go up and issues around sustainability, public health and climate change adaptation emerge. The challenge is in determining the most constructive role for the City within the limits of regulatory powers and financial resources. The initial package of measures suggested in this report will:

put in place some obvious no or low cost measures to help promote and monitor green building progress;

explore the potential role of an integrated and priority approvals process for LEED buildings;

review additional policy measures in the context of the Official Plan review; and

assess the feasibility and cost-effectiveness of different approaches to achieving environmental performance and LEED credits through practical application in case study pilot projects.

A follow-up report with lessons learned and future recommendations will be brought forward on completion of the pilot project and Official Plan review.

CITY STRATEGIC DIRECTIONS

Promotion of green buildings and use of LEED in the private sector supports a number of the City Strategic Directions including:

reducing greenhouse gas emissions
meeting the intent of LEED standards
become leading edge in community and urban design

It is also supportive of the Air Quality and Climate Change Management Plan and the Environmental Strategy.

ENVIRONMENTAL IMPLICATIONS

LEED projects have a significant number of environmental benefits as described in the body of this report. The pilot projects will have direct environmental benefits and by helping shape and inform an ongoing City program, will result in increased market penetration of green buildings and LEED certification.

CONSULTATION

Consultation will occur throughout the pilot project phase with stakeholders and the development industry, including initial consultations to further refine the details of program components. To date, various components of the pilot program have been discussed with the Environmental Advisory Committee and informally with industry stakeholders.

FINANCIAL IMPLICATIONS

The funding for the design incentive pilot program, promotion, and analysis of the pilot project results was included within the 2008 Capital Budget and was approved by Council.

SUPPORTING DOCUMENTATION

Document 1 List of LEED New Construction Credits

Document 2 Summary of municipal programs elsewhere in North America

DISPOSITION

Upon approval, Planning, Transit and the Environment Department staff will organize a forum to introduce the project in early 2008 and begin the Green Pathway project.

LIST OF LEED NEW CONSTRUCTION CREDITS DOCUMENT 1

The LEED rating system for New Construction is divided into four general categories with a number of measures in each category. Some of the measures are pre-requisites (so do not “score” any points) while the others are worth one point each. The levels of rating are:

Certified 26-32 points

Silver 33-38 points

Gold 39-51 points

Platinum 52 + points

The following is a brief simplified description of the credits and points with prerequisites identified.

Rating Measures

Sustainable Sites

These measures are meant to rate the location and site treatment of the proposed development. They include the measures that are not internal to the building (and thus are more comparable to considerations involved in, for example, the site planning approvals process). The ability to achieve a number of these credits is influenced by the location and type of development. Urban infill development (close to transit), particularly brownfield sites, can score very well.

Erosion and Sedimentation Control

· A prerequisite that ensures that proper erosion and sedimentation controls are in place during construction. A standard condition of approval

Site Selection

· Provides a point if the site is not in an agricultural or environmentally sensitive area. Addressed at the Official Plan level.

Development Density

· Provides a point if the site is an already developed and reasonably dense area equivalent of two-story downtown density. Recognizes use of existing infrastructure and protection of greenspace.

Redevelopment of Contaminated Site

· Provides a point for development of a brownfield site in recognition of the environmental benefits of remediating and using a brownfield site

Alternative Transportation, Public Transportation Access

· Provides a point for proximity to transit

Alternative Transportation, Bicycle Storage and Changing Rooms

· Provides a point for secure bicycle storage and shower/changing facilities

Alternative Transportation, Alternative Fuel Vehicles

· Provides a point for providing hybrid or alternative fuel vehicles for occupants and preferred parking for such vehicles, or providing alternative fueling stations

Alternative Transportation, Parking Capacity

· Provides a point for minimizing parking capacity

Reduced Site Disturbance, Protect or Restore Open Space

· Provides a point for minimizing disturbance of Greenfield sites or restoring greenspace on previously developed sites

Reduced Site Disturbance, Development Footprint

· Provides a point for reducing the development footprint to exceed the Zoning By-law's open space requirement

Stormwater Management, Rate and Quantity

· Provides a point for maximum reduction of post-development storm run-off

Stormwater Management, Treatment

· Provides a point for treatment of storm run-off to remove suspended solids and phosphorous.

Heat Island Effect, Non-Roof

· Provides a point for shading and use of light coloured material to lower surface temperature and heat absorption, thus reducing the urban heat island effect (urban area is warmer as a result of pavement and dark temperatures)

Heat Island Effect, Roof

· Provides a point for light coloured or green roofing to lower air temperatures and reduce the heat island effect.

Light Pollution Reduction

· Provides a point for meeting certain standards for eliminating light trespass from the building site.

Water Efficiency

These measures are designed to reduce the use of potable water thereby lessening the need for water treatment, pumping and related municipal infrastructure.

Water Efficient Landscaping, Reduce by 50 per cent

· Provides a point for reducing use of potable water in landscaping by 50 per cent

Water Efficient Landscaping, No Potable Use or No Irrigation

· Provides an additional point for eliminating the need for potable water in landscaping

Innovative Wastewater Technologies

· Provides a point for reducing wastewater from the site (e.g. composting toilets/waterless urinals)

Water Use Reduction, 20 per cent Reduction

· Provides a point for reducing use of potable water in the building by 20 per cent as compared to conventional use in comparable buildings

Water Use Reduction, 30 per cent Reduction

· Provides an additional point for a 30 per cent reduction

Energy and Atmosphere

These measures are designed to reduce the contribution of the building to external air emissions and generation of greenhouse gases.

Fundamental Building Systems Commissioning

· This is a prerequisite that involves verifying that all the building systems perform as designed to ensure that savings are achieved.

Best Practices Commissioning

· Provides a point for additional commissioning measures such as peer review and follow-up work.

Minimum Energy Performance

· There is a required level of energy performance which is equal to a 25 per cent reduction in energy use from the Model National Energy Code

Optimize Energy Performance

· There are 10 points available for additional reductions in energy with two points for a 29 per cent reduction through to 10 points for a 64 per cent reduction

Renewable Energy

· Provides a point if five per cent of the building's energy use is provided through a renewable source (e.g. solar) with additional points for 10 per cent and 20 per cent.

Green Power

· Provides a point if 50 per cent of a building's electrical demand is satisfied through the purchase of green power from a green power supplier (such as Bullfrog Power).

CFC reduction in HVAC & R equipment and elimination of Halons

· This is a prerequisite that involves zero use of CFC and zero use of Halons in fire suppression equipment

Ozone Protection

· Provides a point for installing HVAC and refrigeration equipment that do not contain HCFC’s

Measurement and Verification

· Provides a point for installing continuous metering equipment for energy and water systems to ensure ongoing accountability and optimization of building performance over time

Materials and Resources

These credits are designed to reduce resource use and related waste generation.

Storage and Collection of Recyclables

· This is a prerequisite that involves providing an easily accessible area for collection and storage of recyclables

Building Reuse: Maintain 75 per cent of Existing Walls, Floors, and Roof

· Provides a point for maintaining 75 per cent of an existing building when redeveloping a site to encourage building reuse rather than demolition

Building Reuse: Maintain 95 per cent of Existing Walls, Floors, and Roof

· Provides an additional point for 95 per cent reuse

Building Reuse: Maintain 50 per cent of Interior Non-Structural Elements

· Provides a point if 50 per cent of interior walls, floor coverings etc, are maintained.

Construction Waste Management: Divert 50 per cent from Landfill

· Provides a point if 50 per cent of construction waste is diverted from Landfill

Construction Waste Management: Divert 75 per cent from Landfill

· Provides an additional point if 75 per cent is diverted

Resource Reuse: five per cent

· Provides a point if re-used or salvaged building materials make up five per cent of the total cost of building supplies

Resource Reuse: 10 per cent

· Provides additional point if re-used materials make up 10 per cent

Recycled Content: 7.5 per cent (post-consumer + ½ post-industrial)

· Provides a point if 7.5 per cent of materials in the building use re-cycled content

Recycled Content: 15 per cent (post-consumer + half post-industrial)

· Provides an additional point if recycled content is 15 per cent

Regional Materials: 10 per cent Extracted and Manufactured Regionally

· Provides a point if 10 per cent of materials used are extracted and manufactured within 800 kilometres of the site

Regional Materials: 20 per cent Extracted and Manufactured Regionally

· Provides an additional point if 20 per cent of materials are local

Rapidly Renewable Materials

· Provides a point if five per cent of the value of building materials are from rapidly renewable sources (e.g. wheat board, bamboo, cork)

Certified Wood

· Provides a point if a minimum of 50 per cent wood products are “certified” in accordance with the Forest Stewardship Council’s Principles and Criteria.

Durable Building

· Provides a point if there is a Building Durability Plan to extend the life of the building (thereby maximizing the resource inputs and delaying waste creation)

Indoor Environmental Quality

These credits are designed to improve indoor environmental quality thereby improving health and productivity of occupants.

Minimum IAQ Performance

· This is a prerequisite that involves meeting a minimum Indoor Air Quality standard

Environmental Tobacco Smoke (ETS) Control

· This is a prerequisite that requires that building occupants not be exposed to tobacco smoke

Carbon Dioxide (CO2 ) Monitoring

· Provides a point for installing permanent carbon dioxide monitoring system

Ventilation Effectiveness

· Provides a point for meeting a defined standard for ventilation

Construction IAQ Management Plan: During Construction

· Provides a point for an development and implementation of an indoor air quality management plan for construction

Construction IAQ Management Plan: Testing Before Occupancy

· Provides a point for development and implementation of an indoor air quality management plan for the pre-occupancy stage

Low-Emitting Materials:

· These credits provide a point each for use of low VOC or no urea-formaldehyde resins in:

Ø Adhesives & Sealants

Ø Paints and Coating

Ø Carpet

Ø Composite Wood and Laminate Adhesives

Indoor Chemical and Pollutant Source Control

· Provides a point for designs or systems which minimize occupant exposure to particulates or chemicals which could be harmful (e.g. grills at entrance doors to capture dirt or particulates before they can be transported into the building).

Controllability of Systems: Perimeter Spaces

· Provides a point for designs which allow occupants to control perimeter features to increase comfort (e.g. operable windows)

Controllability of Systems: Non-Perimeter Spaces

· Provides a point for systems that allow occupants to control airflow, temperature and lighting in regularly occupied areas.

Thermal Comfort: Compliance

· Provides a point for meeting certain standards for thermal comfort

Thermal Comfort: Monitoring

· Provides a point for a permanent monitoring system to ensure the building is performing as per the Thermal Compliance credit

Daylight and Views: Daylight 75 per cent of Spaces

· Provides a point if there is daylight in 75 per cent of all regularly occupied spaces

Daylight and Views: Views 90 per cent of Spaces

· Provides an additional point if there is daylight in 90 per cent of occupied spaces

Innovation and Design Process

Innovation in Design

· Provides a point for innovation above and beyond defined LEED credits

LEED® Accredited Professional

· Provides a point if there is a LEED Accredited Professional on the design team

SUMMARY OF MUNICIPAL PROGRAMS ELSEWHERE

IN NORTH AMERICA DOCUMENT 2

The following summary provides some examples of programs, some picture of activity in Ontario, and a summary table organized by incentive or program type.

Ontario Municipalities

Several municipalities in Ontario are at a similar stage as Ottawa, exploring ways to promote LEED and green building in the private sector. With the exception of Toronto, most of these programs are still in the formative stages.

Toronto:

Developed a “made in Toronto” Green development Standard (one for low rise development and one for medium/high rise). The standards were developed through a relatively involved process over the last year and are voluntary at present. The City has developed checklists (low rise and medium/high rise) to accompany their Green Development Standard. City web site has links to various incentive programs that relate to the Green development standards as well as a chart comparing the Green Development Standards to LEED credits. Currently working on a cost benefit study to support the Green Development Standards and exploring the feasibility of making the standards mandatory under powers in the City of Toronto Act.

There is also a green roof incentive pilot program which provides $50 per square metre incentive for residential (max of $10 000) and commercial (max of $100 000) green roofs.

Burlington:

No active program but are planning to study options in 2008.

East Gwillimbury:

Has mandated Energy Star housing in new residential development (voluntary in the sense that the homebuilders have agreed not to challenge the policy). Have now passed a similar policy approach for LEED although LEED type construction is relatively limited in the municipality.

London:

Has four green building initiatives:

· LEEP project – London Energy Efficiency Partnership Project. This project assessed the feasibility of alternative energy efficient building technologies. The building/development community participated in this feasibility analysis. A range of builders are now moving forward on the next phase to implement some of these green building technologies, based on the results of the feasibility analysis.

· District energy system proposal – working with Sifton Properties to build a district energy facility for their proposed Riverbend Heights Community.

· Looking at the possibility of instituting a Green Standard much like Toronto’s and are planning on hosting a conference in the New Year to set the tone and political impetus to move forward on this.

· Are undertaking a Placemaking Demonstration Project. A second phase of this project will place a sustainable “lens” over the demonstration subdivision design to show how community-oriented sustainable design features can be incorporated into subdivision development (not unlike a sustainable design checklist).

Caledon:

Have consulted on green building technologies with the building community and just held a workshop with Council on potential green development incentives. They are looking at providing Development Charge rebates based on specific green technology (for example, providing a five per cent DC rebate for solar hot water).

Pickering:

Has completed sustainable development guidelines and a score card that is applied at the community/neighbourhood level – based in part on the LEED for Neighbourhood Development System.

Partners for Climate Change Action Plan recommends trying to make LEED silver mandatory for private ICI development however to date, this has been limited to promoting LEED and ensuring that the idea is explored during pre-consultation for development proposals

Waterloo:

Developing a green roof policy for City Buildings and planning to look at LEED promotion after the current review of the Official Plan is complete

Programs elsewhere in Canada

Vancouver, B.C.

In 2005, city council approved:

· The development and implementation of the Vancouver Green Building Strategy (GBS)

· The approval of a total budget of 100 000 dollars, and the creation of a position for one civil engineer for a period of one year. The project is reviewing municipal regulations and standards in an effort to incrementally increase regulations/standards to the point where they achieve LEED silver certification levels.

In 2004 their energy utilization by law was revised to improve energy efficiency and they approved a LEED gold certification policy for civic buildings greater than 500 square feet.

Victoria, B.C.

Victoria employs several incentives to promote green building:

· Rebates on building permit fees- there is a possibility for up to 30 per cent rebates for gold standard buildings (under the LEED program)

· Priority service for green building permits

· Design assistance

· Assistance filling out rebate applications and applications for grants/ programs

· Free Energuide assessments and testing

· Building labelling and awards programs

Victoria also plans to achieve an Energuide for Houses rating of 80 for all new single detached family and row houses by 2010.

Local courses in green building for builders to become accredited in green building practices are also offered.

Calgary, Alberta

Provides building fee rebates for LEED projects.

· 10 per cent for certified

· 20 per cent for silver

· 30 per cent for Gold

(Max of $100 000)

Programs in the United States

There are a considerable number and a wide variety of LEED incentive programs in the United States. The following summary describes some of the more active programs and provides a listing of some others organized by the incentive type.

Seattle, Washington:

Seattle Public Utilities funds the Built Green Incentive Program. The City is an active observer, to help determine what the most cost effective sustainable building services are that the City can offer the private sector. Built Green design competition for residential green building projects. Selected projects will receive financial and technical assistance, facilitated permit processing, public recognition, and marketing support.

Arlington, Virginia

Established a Green Building Fund requiring builders and developers who don’t meet LEED standards to contribute .03 cents per square foot to the fund. Builders will be refunded if LEED standards are thereafter met.

Has a Green Building Density Incentives Program- possibility for density credits to be given in the areas with density regulations.

Chicago, Illinois

Has a Resource Center for those seeking information or advice on Green Building and also runs design competitions and research initiatives.

City has a fast track plan check, free LEED compliancy preliminary plan checks, and financial incentives ranging from $5 000-50 000 for LEED projects depending on the size of the building and the LEED level obtained.

They have a Green Projects Administrator and one staff person working on LEED reviews for projects.

Santa Monica, California:

Has established a number of educational programs:

· Communicate guidelines and design reference guide through a free website

· Resource center for green building

· Monthly green building seminars

· Annual green building expo

· Annual tours of green buildings

Santa Monica also offered $20 000-$35 000 to developers designing to LEED standards and no one took it but they are soon to offer fast tracked development approval and that is generating more interest. Goal is to have all buildings over 10 000 square feet LEED certified by 2010.

Baltimore County, Maryland:

Starting June 2006 Baltimore County has been giving a tax break to any commercial building meeting a LEED silver certification or higher. These tax cuts will continue for 10 consecutive years. The tax credit is equal to 100 per cent of the county property tax. The program may not exceed 5 000 000 dollars without an annual county review of the program amount.

Gainsville, Florida:

Incentives provided for projects seeking LEED certification (any building from residential to commercial):

· Fast tracked building permits

· Final project designation by the city

· Reduced permits (for non program participants a 50 per cent fee reduction will be provided)

· Special incentives given for multi family residential retrofitting and remodelling

· Cash renovation incentive which may fluctuate depending on availability of funds

· Cash solar water heater incentive (solar heating requirements included)

· Marketing incentives such as: Signs to designate project being build to LEED standard, information about projects and company on city program website, press releases and promotional packages

· “Green Building Award”: Will be awarded annually by the city government to one program participant in one sub-program.

Los Angeles, California:

Starting this year, 2007, the city of Los Angeles has implemented a few incentives for those developers pursuing LEED standards or “greener” buildings. Certain large commercial projects will be offered expedited permit processes for meeting a LEED silver standard. With help from the water and power board the city will also offer expedited electrical connections for buildings meeting a LEED silver standard. The Los Angeles Water and Power Board (LADWP) also offer an incentives program which gives financial assistance (in the form of a grant) of up to 250 000 dollars to those building striving for greener building or LEED standards.

San Diego, California:

Sustainable Building Expedite Program:

· Expedition of processes for projects seeking LEED silver rating and above.

· Residential project must have 50 per cent of energy provided by renewable energies and commercial projects must have 30 per cent.

· Expediting will also be given to commercial and residential buildings providing self generation through renewable energy sources.

· Applies to new facilities and major renovations

Also encourage certain levels of energy efficiency and building efficiency set out in the city council policy on green building.

All city projects to meet a LEED silver rating for building over 5 000 square feet.

Washington DC:

Washington DC has put together legislation cited as the “Green Building Act of 2006” in which they call for the creation of incentives program for commercial and private residential buildings. This program includes expedited permit processes and possible grants. A Green building fund will also be implemented for the purpose of education, technical assistance, and funding and building monitoring of private buildings.

San Antonio, Texas:

The city had implemented a scorecard system of which phase two has just been approved. This scorecard system is used for incentives purposes to provide possible waivers of certain development fees for projects reaching desired levels depending on the scorecard.

Sarasota County, Florida:

Require all city buildings to be LEED certified. Fast tracking of building permits and fee reductions of 50 per cent of building permit fee’s for private contractors meeting LEED standards has also been implemented. Fast tracked permits are also provided for residential and commercial projects meeting green standards under the green development incentive resolution. These incentives apply to LEED for neighbourhood development and the Florida Green Building Councils (FGBC) standards.

Others

Process Incentives:

San Mateo offers technical assistance (product data bases, etc.)

Portland Oregon provides support and technical assistance to applicant submitting for a minimum of LEED silver including assigning a project manager to the file.

Oakland, California: Promotes green building by offering free technical assistance, guidelines, and public promotion for qualified projects.

West Hollywood, California: City ordinance calls for the creation of a green building resource center to provide free technical assistance for green building developments.

Density Bonuses:

Nashville, Tennessee: Provides density bonuses beginning in 2007 that are given to those projects meeting LEED silver and gold for both the city district and certain residential neighbourhood districts.

Bar Harbor, Maine: Based on an application/assessment process, buildings meeting LEED standards are awarded density bonuses of one additional market rate dwelling unit.

Portsmouth, New Hampshire: Private projects using LEED standards are given density bonuses by the city.

Sunnyvale, California: A density bonus of five per cent is given to those projects meeting a LEED certified standard.

Tax Breaks:

Howard County, Maryland: A property tax cut is given for projects achieving LEED-NC and LEED-CS.

Chatham County, Georgia: Allows for a full property state and county tax break to those commercial buildings built to a LEED gold standard for the first five year, and then reducing that tax break by 20 per cent for 10 years.

Cincinnati, Ohio: Allows for a 100 per cent tax break for LEED certified commercial and residential buildings for 15 years for new construction and 10 years for renovations (with maximum limits).

Monroe Country, New York: A 14-year tax abatement given to promote LEED building in the County.

Expedited Permits:

Miami Lakes, Florida: Green Building program allows for expedited permits and possible fee reductions on rebates for private developers building to Green Building program standards.

Howard County, Maryland: All new county projects are required to meet LEED silver, expedited permits for projects seeking LEED gold or platinum are also given.

Issaquah, Washington: Expedites permits for those projects meeting LEED certification and provides consultation to developers using LEED standards.

San Francisco, California: Expedited permit reviews are given to new and renovated projects meeting LEED gold certification.

Grants and Financial Assistance:

King County, Washington: Green Building Grants Program provides $15 000-25 000 to fund major renovations meeting LEED silver.

Pasadena, California: Rebates given to developers who meet minimum certification, plus one month's electricity savings will be matched (capped at 100 000). $1 000 per unit given for affordable housing, a grant is also provided to applicants and free technical assistance is given.

Regulation

Boston has passed regulations requiring LEED building standards in new construction through their zoning bylaw

A more complete summary of updated incentive programs in the United States can be found at www.usgbc.org