Becoming a Green Community

Discussion withBoard of Selectmen

Michael GreisGreen Needham Collaborative

23 November 2010

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Agenda

• Benefits of becoming a Green Community

• Green Community Requirements

• Where we stand

• Meeting the remaining requirements

Why?

• It’s the right thing to do

• It’s the smart thing to do

• It saves money

• We’re already doing much of it

• What we’re not doing, we’ll have to do

Benefits of being a Green Community

• Climate Change, the Environment, Health– Reduction in greenhouse gas emissions– Cleaner, greener environment– Reduced health care costs and decreased mortality

• Comfort and quality of life – More comfortable homes, offices and schools

• Long-term Sustainability– Minimize and control volatile energy costs

• Economic Development– Lower cost of owning and operating facilities makes Needham more

attractive to businesses– Green / LEED / Energy Efficient building is now the commercial baseline– Homes are less expensive to own and more attractive to buyers– Prospective residents want to make a smart choice of community to live

in – a sustainable, energy-efficient, green community reinforces their choice of Needham

Benefits of being a Green Community

• Saving energy, saving money– Municipal energy reductions save taxpayer dollars and promote

confidence in municipal government– Residents save money and reduce life cycle costs of owning

homes– Businesses save money and reduce facility costs

• Savings benefit the local economy– Massachusetts has no local energy production– The dollars spent on energy leave the community and the region

• Oil used by Needham residents represents a transfer of wealth to OPEC of $14.6 million each year

– Money not spent on energy by the municipality, residents and businesses can be spent to benefit the local economy

• 10% of the FY 2011 energy budget = 4 teachers + 2 firefighters

Benefits of being a Green Community

• Funding – Green Community Grants– Funding from RGGI Auctions ($8-9 million yearly)– Not subject to budget process, legislative

appropriation or 9C cuts– Peer Towns received $150,000 – 200,000 – Will become more competitive as additional

communities qualify

• Funding – preference for other grant programs– October 2010 Electric Vehicle Charging Stations

Benefits of being a Green Community

• Supports and advances stated goals of the Selectmen– financial sustainability– energy savings – effective use of resources – increasing town revenue – economic development – improving health and welfare – instituting environmentally sound practices

Benefits of being a Green Community

• Creates a social norm and promotes a community identity that:– Builds buy-in for Selectmen and Town Manager goals

on sustainability– Encourages further actions by citizens, businesses

and Town employees– Enhances Needham’s image as a smart place to live

and do business

Green Community Requirements

• As-of-right Siting – for renewable energy R&D, Manufacturing or Generation in

designated areas

• Expedited Permitting – within one year via local permitting or MGL Chapter 43D

• Municipal Energy Use Baseline & Reduction Plan – target 20% from baseline within 5 years

• Fuel-efficient Vehicles – purchase subject to availability

• Minimize Life-cycle Costs – adopt Stretch Energy Code (780 CMR 120 AA)

Green Community Requirements- where we are

• As-of-right Siting – Planning Board and Planning Director prepared to proceed with

overlay for RTS – Location for prospective wind turbine and solar array

• Expedited Permitting – Planning Director & Board feel our process enables us to meet

this requirement• Municipal Energy Use Baseline and Reduction Plan

– Energy baseline complete and monitoring in place– Town Manager ‘s 5% Energy Challenge 2009-10

• Fuel-efficient Vehicles – Already seek efficient vehicles and have purchased hybrids

• Minimize Life-cycle Costs – adopt Stretch Energy Code– Needs Town Manager & Selectmen support, Town Meeting

approval

Stretch Code Communities

- 35 designated Green Communities in May, 2010- Many of the rest will be applying this month

Many of our peer communities are already on this list…

-Newton-Natick-Lexington-Brookline-Concord-Sudbury-Arlington-Hopkinton-Dedham

Massachusetts Energy Codes

• Meeting energy codes is not a new requirement – IECC 2006, since 2008

• A new code is in effect as of July 1, 2010– IECC 2009 - 10% more energy efficient than IECC 2006

• Stretch Code – 20% more energy efficient than current MA code (IECC 2009)

• Green Communities Act requires adoption of new IECC energy codes

• Stretch Code will become the base code – IECC 2012 will be adopted in 2013

Stretch Code Coverage

• Residential – New construction and additions – Renovations

• Commercial– New construction and additions > 5,000 sf– Renovations exempt– Specialized facilities (supermarkets, labs, warehouses)

• < 40,000 sf – exempt• > 40,000 sf – covered

What’s different about the stretch Energy Code?

• Reduces the cost of owning and using buildings• Empowers the property owners to achieve energy

savings by making decisions and trade-offs that meet their needs

• Provides quality assurance that owners are getting what they pay for

It is results-oriented - focused on performance, not prescriptive requirements

Performance codeversus Prescriptive code

Prescriptive codes don’t guarantee good results

For example, small air gaps created by faulty installation can reduce the R-value of insulation by 50% or more

Performance testing ensures that homeowners get the results they are paying for

Advantages of Performance-based code

- Property owner- Makes the decisions- Can make design trade-offs- Quality assurance of the work and the results

-Code official- Compliance & inspections essentially same as base code- Retains authority- 3rd party professional rating reduces disputes

Bottom line:Reducing life-cycle costs

Building to the stretch code provides significant bottom-line financial benefits to the property

owner – the building costs less to own and use

Residential: - Small or even no cost premium- 30% reduction in energy costs- Net cash savings – up to several thousand dollars per year

Commercial:- Average 2% cost premium yields immediate 30% savings in energy & water- Rates of return of >30% common- Often cash flow positive from day 1

Path to Adoption

• Selectmen and Town Manager commit to becoming a Massachusetts Green Community– Adopt energy reduction plan– Commit to buying energy efficient vehicles– Adopt Stretch Energy Code (subject to TM vote)

• Planning Board prepares and approves:– As-of-right zoning– Commitment to expedited permitting

• Annual Town Meeting - May, 2011– Vote to adopt zoning by-law changes– Vote to adopt Stretch Energy Code

• Town Manager submits Green Communities Designation form to DoER

Green Needham Collaborative:– www.GreenNeedham.org

• Green Needham Collaborative Blog– www.GreenNeedham.org/blog

• 10% Energy Challenge– challenge.GreenNeedham.org

End of presentation

Linked slides follow

Green Building Study, Sponsors USBGC & others – Greg Kats, Lead Author http://www.goodenergies.com/news/-pdfs/Web%20site%20Presentation.pdf

Cash flow for 3,500 sq home (including all rebates and incentives)-Net cost of improvements:

-$7,314-Annual cash flow to owner

-$2,338

Without rebates & incentives:- Net cost of improvements:

- $10,614- Annual cash flow to owner

- $1,102

Cash Flow scenario prepared by Mark Sandeen, Lexington GWAC

Slides from DoER Stretch Code 201 Webinar

Slide from EPA Presentation at Electric Restructuring Roundtable 10/29/10

Benefits Costs