Draft Energy Efficiency Density Bonusing Policy

Waleed Giratalla, P.Eng., M.Sc. Don Luymes Community Energy Planner Manager, Community Planning September 26, 2013

Outline

1. Context a. Drivers: Economic + Environmental b. Current Energy Standards

2. Energy Efficiency Density Bonusing Policy a. Local Examples b. Draft Policy c. Draft Process d. Next Steps

3. Questions & Discussion

Economic Drivers • Energy costs rising faster than income levels • Reducing energy consumption protects citizens and businesses

from potential economic challenges

Environmental Drivers • To address climate change, Surrey has committed to reduce

per capita greenhouse gas (GHG) emissions: 33% by 2020 and 80% by 2050 (from 2007 levels)

• An ENERGYShift is underway in Surrey to address climate change and increase local energy security.

• West Clayton is considered an “ENERGYShift Neighbourhood”

Current Energy Efficiency Standards • Part 9 Buildings (Single-Family Homes & Townhomes)

EnerGuide Rating System (ERS) from 0 – 100 New homes built to BC Building Code achieve approx. ERS 77

• Part 3 Buildings (Four-Storey and Above) American Society of Heating, Refrigerating and Air-Conditioning

Engineers (ASHRAE) New buildings to meet ASHRAE 90.1 (2004)

Local Examples

Cellar Bonus for ERS 80

City of North Vancouver District of North Vancouver

Part 9 Residential Buildings Max. Allowable Density (Units Per Acre, UPA)

UPA Bonus

EnerGuide 80 EnerGuide 82 EnerGuide 84 EnerGuide 86

Low Density (Single-Family) 10 1 2 3 4

Medium Density (Single-Family / Semi-Detached) 14 2 3 4 6

High Density (Townhouses, 4-plexes, etc.) 25 1 3 4 5

Part 3 Residential Buildings Max. Allowable Density (Floor Area Ratio, FAR)

FAR Bonus

ASHRAE (2007) ASHRAE (2010) %__ below

ASHRAE (2010) %__ below

ASHRAE (2010)

Multi-Family (4-Storey and Above) 1.3 0 5% TBD TBD

Draft Policy

* Demonstration projects may also be considered on a case-by-case basis

Draft Process - General • Developer proposes density above maximum allowed in

Neighbourhood Concept Plan (NCP) • City works with developer to confirm density and energy

performance requirements • A covenant, outlining the energy performance

requirements of future development, is registered on title before rezoning is granted (in case land is sold)

• At building permit stage, the developer submits a letter of credit to the City

• The City returns the letter of credit once the energy performance requirement is confirmed after construction

Draft Process – Part 9 Buildings Rezoning / Development Permit Stage

Building Permit Stage

Post - Construction

Density Bonus Confirmed & Land Covenant Registered

Contact Certified Energy Advisor (CEA)

Pre-Construction Evaluation

Post-Construction Verification

Apply to City

Letter of Credit Submitted to City

Letter of Credit Returned to Developer

EnerGuide Label & Power Smart Incentives

Draft Process – Part 3 Buildings

Rezoning / Development Permit Stage

Building Permit Stage

Post - Construction

Density Bonus Confirmed & Land Covenant Registered

Provide energy model & letter confirming building

is designed to meet appropriate ASHRAE

standard

Apply to City

Letter of Credit Submitted to City

Letter of Credit Returned to Developer

Contact BC Hydro New Construction Program for incentives related to building design, energy modelling, capital costs, etc.

Provide Fundamental Building Commissioning

Report & letter confirming building performs to appropriate ASHRAE

standard

Next Steps • Draft Policy/Process presented with NCP Stage 1 Report to

Council • Policy/Process finalized with NCP Stage 2 Report Will incorporate changes to BC Building Code energy

standards as well as changes to the EnerGuide rating system

Comments / Questions?

Waleed Giratalla, P.Eng., M.Sc. Community Energy Planner

wgiratalla@surrey.ca

W. Clayton NCP Process • West Clayton, an “ENERGYShift”

Neighbourhood • Neighbourhood Concept Plan

(NCP) – Added an “energy lens” to land use and infrastructure planning process

W. Clayton Energy Design Charrette

Building Strategy Annual Greenhouse Gas (GHG) Savings at Build-Out

(kg CO2e/person) (% Reduction)

Energy Efficiency 70 – 130 10 – 17%

District Energy (Supply) 240 – 280 33 – 37%

Summary of Charrette Outcomes

Analysis of Opportunities

How can we advance energy efficiency?

• What tools do we have? Demonstration Projects Design Guidelines Mandating Standards Offering Incentives

• Density Bonusing Policy Purpose: To increase energy efficiency in new

buildings by rewarding developers with a desirable incentive (i.e. increased development rights)

Incremental Capital Cost Analysis

• Objective: To understand the additional cost of increased energy efficiency requirements for new homes and buildings

Housing Type Incremental Capital Cost ($/unit)

ERS 80 ERS 82/83 ERS 86

Single Family $4,400 - $7,400 $5,600 - $9,600 $9,100 - $21,300

Townhouse $0 - $100 $1,200 - $5,000 $4,700 - $16,700

Housing Type Incremental Capital Cost ($/sq.m) ASHRAE 90.1

(2007) ASHRAE 90.1

(2010) Better than

ASHRAE 90.1 (2010)

4-Storey and Above $0 $0.50 - $3.00 > $3.00

Land Economic Study • Objectives:

Examine economic characteristics of potential incentives Develop dynamic financial pro forma Examine relative appeal of various incentives Recommend most efficient strategies and incentives

• Findings / Recommendations: Density bonusing is more effective than other potential incentives

(DCC reductions, fast tracking, parking relaxations) 4-Storey and Above

• 5% Floor Area bonus to projects that meet ASHRAE 2010 Townhomes

• 2-3 units per acre (UPA) bonus to projects that meet ERS 82/83 Single Family Homes

• 1-3 UPA bonus to projects that meet ERS 82/83

Land Economic Study • Sample Analysis Summary:

Utility Incentives

Utility Incentives

• Three Options 1. Whole Building Design

Up to 100% funding of energy modeling study

2. System Design 3. Energy Efficient Lighting Design

Questions & Discussion

• Would this density bonusing scheme be attractive to you? • Any specific comments about the draft policy &/or draft

process? • In cases where a land owner is selling property to a

builder, how would the builder react to a land covenant? • Is there interest in implementing renewable energy

supply strategies (e.g. solar panels, geoexchange) as well? What incentives, if any, would be required?