Agenda Item 6B
June 10,2014
Action
MEMORANDUM
TO:
FROM:
County Council
Amanda Mihill, Legislative
~Michael
Faden, Senior Legislative Attorney
Attorneye;l1~
Clean Energy Renewable Technology
SUBJECT:
Action: Bill 8-14, Buildings - County Buildings
Transportation, Infrastructure, Energy and Environment Committee recommendation
(3-0):
enact Bill 8-14 with amendments to:
• delete the substantive provision of Bill 8-14 that requires a contract to building or
extensively modify a County building to use clean renewable energy technology;
• require the Executive to propose a Clean Energy Plan by a Method 1 Regulation within 6
months that would specify the amount of onsite clean energy to be installed on new or
existing County buildings; and
• require the Executive to set a target for clean energy installed on County facilities.
Bill 8-14, Buildings County Buildings - Clean Energy Renewable Technology, sponsored by
Councilmembers Berliner, Floreen, Riemer, Eirich, Andrews, and Navarro, was introduced on January 28,
2014. A public hearing was held by the Committee on February 11 and a Transportation, Infrastructure,
Energy and Environment Committee worksession was held on March 24. At the hearing, a
representative of the Executive expressed the Executive's general support for the package of
environmental initiatives (©20).
As introduced, Bill 8-14 would require new or extensively remodeled county buildings to
generate at least 1 kilowatt of renewable energy for every 1,000 square feet of floor area. Current
County law does not set specific standards for the use of renewable technology in County buildings.
Bill 8-14 was modeled after a recently-enacted Prince George's County law.
Councilmember Berliner explained the purpose of this Bill in his January 14 memorandum
describing his proposed energy/environmental package (©9).
The Fiscal and Economic Impact statements for this Bill are on ©35. The Department of General
Services estimates that 2 positions are needed to implement the bill and the Clean Energy Plan, but that
some of these costs are offset by projected energy savings. For FY15, the Department estimates
expenditures of $200,654 and energy cost savings of $30,000 for a net cost of $170,654. These positions
are not funded in the FY 15 budget the Council recently adopted.
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Issues
Because the Committee supported the Executive amendment described on page 3, it was not
necessary for the Committee to reach the following issues. Therefore, the Committee did not discuss
these issues.
Should Bill
8-14
be a mandate or goal?
The Montgomery County Chapter of the US Green
Building Council (USGBC) urged that the requirements of Bill 8-14 be a goal, not a mandate. They
argued that most buildings would not be able to meet this goal with other building regulations and that
the cost ratio of meeting the renewable requirement to the total project cost is high. Council staff notes
the cost limit in Bill 8-14, generally speaking, is limited to 2% of the total cost of the project. The
County chapter of the USGBC is correct in that funds for capital projects are limited and would compete
with other County projects. This is a policy consideration for the Committee. If the Committee shares
similar concerns, one option would be to provide a waiver mechanism where the Director could waive
the clean renewable energy technology requirement if the Director fmds that including such technology
would be cost prohibitive.
What type of renewable energy technologies should
be
permitted?
As noted above, Bill 8-14
would require a newly constructed or extensively remodeled county building to generate at least 1kw of
renewable energy for every 1,000 square feet of floor area. The American Institute of Architects,
Potomac Valley Chapter assumed that the bill required that renewable energy be provided by
photovoltaic generation and urged that other on-site energy technologies should be permitted. As
drafted, "clean renewable energy technology" would encompass more than photovoltaic generation.
"Clean renewable energy technology" would be defined, in part, as "a technology or system that uses
geothermal heating and cooling, solar hot water heating, wind power, solar electricity generation, or
solar thermal generation.
Should certain buildings be exempt from Bill
8-14? Maryland-National Capital Park and
Planning Commission (M-NCPPC) urged the Council to exempt small buildings and historic buildings
from the bill. Council staff is unsure why small buildings should automatically be exempt from the clean
technology requirements.
If
the improvements are not cost effective, or exceed 2% of the cost of the
project, clean energy technology would not be required. Regarding historic buildings, there may be ways
to incorporate clean energy technology while retaining the historic nature of the building. Rather than
exempting all historic structures from the bill, Council staff suggests amending Bill 8-14 to allow the
Director to waive the requirements if clean energy technology cannot be incorporated while retaining the
historic nature of the building.
Implementation in County Agencies
M-NCPPC recommended the Council amend the definition
of "Director" to include either the Director of DGS or the Director of the agency managing the covered
building. M-NCPPC note that the Parks Department has County-financed buildings on parkland, but
DGS does not playa role managing or benchmarking the buildings.
2
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Committee Recommendation
At the worksession, Staff from the Department of General Services submitted a proposed
amendment to:
• delete the substantive provision of Bill 8-14 that requires a contract to building or extensively
modify a County building to use clean renewable energy technology;
• require the Executive to propose a Clean Energy Plan by a Method 1 Regulation
I
that would
specify the amount of onsite clean energy to be installed on new or existing County
buildings; and
• require the Executive to set a target for clean energy installed on County facilities.
The Committee (3-0) supported this amendment with the addition of requiring the Clean
Energy Plan to be submitted within 6 months.
This packet contains:
Circle
#
Committee Bill 8-14
1
Legislative Request Report
7
OMB and Finance Memo
8
Memorandum from Councilmember Berliner
9
Select correspondence
American Institute of Architects, Potomac Valley Chapter
11
USGBC-NCR Montgomery County Branch
17
20
County Executive
Maryland-National Capital Park and Planning Commission
21
Fiscal and Economic Impact Statements
35
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1
Under Code §2A-15(f), a Method 1 regulation is not adopted until the Council approves
it.
3
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8-14
Bill No.
Concerning: Buildings
County
Buildings - Clean Energy Renewable
Technology
Revised:
3/31/2014
Draft No. 2
Introduced:
January 28, 2014
Expires:
July 28, 2015
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: --'-"N=on::.::e"-:--::--_ _ __
Ch. _ _
Laws
of Mont. Co. _ __
I
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Berliner, Floreen, Riemer, EIrich, Andrews, and Navarro
AN
ACT to:
(1)
[[require use of certain clean energy renewable technology in the construction or
extensive modification of certain County buildings;
(2)
require the Director of the Department of General Services to conduct a clean
renewable energy technology project feasibility assessment on certain County
buildings]] establish a County Clean Energy Plan and clean energy portfolio target;
require the County Executive
to
issue regulations to define the Plan and target;
require the Director of the Department of General Services to report on the progreSS
of the Clean Energy Plan; and
[[(2)]]
ill
generally amend County law regarding building, energy, and environmental
policy.
By adding
Montgomery County Code
Chapter 8, Buildings
Article VIII, Clean Renewable Energy Technology
Sections 8-54, 8-55, 8-56, 8-57[[, 8-58]]
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Addedto existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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Bill No. 8-14
1
2
Sec. 1. Article VIII (Sections 8-54, 8.;.55, 8-56, 8-57[[, 8-58]]) is added to
Chapter 8 as follows:
Article VIII. Clean Renewable Energy Technolo$!V.
8-54. Definitions.
3
4
5
6
7
In this Article, the following words have the meanings indicated:
Clean energy portfolio target
means a target. expressed in megawatt hour
equivalents. for establishing an amount of clean energy to be installed on the
County's portfolio of facilities.
The County's portfolio includes any
8
9
10
building. facility. or property in which the County has a financial interest. A
financial interest includes any ownership. lease. or public private
partnership. and any facility where the County provides 30% of total
funding.
Clean renewable energy technology
means
~
technology or system that uses
geothermal heating and cooling, solar hot water heating, wind power, solar
electricity generation, or solar thermal generation.
Clean renewable energy
technology
includes passive solar energy generation that reduces energy use
from other sources
Qy
at least 20%.
[[
Cost
11
12
13
14
15
16
17
18
19
effective
means where the cost of installing clean renewable energy
~
technology on
covered County building is not projected to exceed the
20
21
22
23
proiected cost savings of the installation within the first
li
years after the
installation of the technology begins.]]
[[
County
building
means any building for which the County government
construction, for
~
newly constructed building; or
modification, for
~
building that is extensively modified.]]
~
finances at least 30% ofthe cost of:
24
25
26
27
ill
ill
[[Covered County building
means
modified County building.]]
newly constructed or extensively
28
F:\LAW\BILLS\1408 Coon Buildings-CJean Energy Renewable Technology\BiII 2 Committee.Doc
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Bill No. 8-14
29
30
31
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35
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54
Director
means the Director of the Department or the Director's designee.
[[Extensivelv modifY or modified
refers to any structural modification which
alters more than 50% of
~
building'S gross floor area, as shown on an
application for
~
building permit.]]
[[Projected total cost
means the estimated cost required to construct or
~
renovate
building, including any building system, interior finish, site
infrastructure, connection to any existing utility, landscaping, and sidewalk
and parking lot built for the immediate use of occupants ofthe building.]]
8-55. Clean energy renewable technology required.
nw
Any contract to build or extensively modify
~
County building must
Except as
require the use of clean renewable energy technology.
provided in subsection
[[{hl]]
L£1.
~
covered County building must
have installed at least
1
kilowatt of clean renewable energy
technology for every 1,000 square feet of gross floor area.
This
requirement may be met
.Qy
using ground mounted clean renewable
energy technology on or directly adjacent to the building lot.
(Q)
Each appropriation to build or extensively modify
~
County building
must include an additional amount of 2% to the projected total cost
funded
.Qy
the County, as shown in the project description form,
subject to subsection
(£1
ill
The Director must limit the size of the clean renewable energy
technology installation if the initial cost of the installation is projected
to exceed 2% of the projected total cost of the new building or
renovation. However, if the Director transfers expenditures to the
project under subsection
[[W]]
ili1
the
initial cost of the installation
must not exceed 4% of the projected total cost.]]
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~gs..clean
Energy Renewable Technology\BiII 2 Committee.Doc
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Bill No. 8-14
55
56
W
By [6 months after date of enactment]' the County Executive must
establish. by Method 1 Regulation. a Clean Energy Plan that includes
a specific amount of on-site clean energy that must be installed on any
new or existing County facility. This Plan must include:
57
58
59
ill
a clean energy portfolio target for total clean energy to be
installed on County facilities. which must exceed 1 kilowatt per
1,000 square feet of facilities anticipated to be added to the
County's portfolio as documented in the Capital Improvement
Program:
60
61
62
63
64
65
ill
a process for vetting any new facility for potential renewable
energy installation during the design phase. including key
criteria for evaluating opportunities for solar energy:
66
67
ill
ill
ill
ilil
(]ll
a plan to ensure that appropriate facilities are solar ready. to the
extent possible:
criteria for responsible site selection to balance the County's
renewable energy goals with other environmental objectives:
a process to coordinate with County agencies on any new
facility built using at least 30% county funds: and
required funding and staffing to achieve the target.
68
69
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72
73
74
The County may install a clean energy system in an alternate location
in the County to meet this requirement including:
75
76
77
78
79
ill .
a vacant property:
ill
a land swap or lease agreement or
ill
any other property or facility
W
where the County has a
contractual. budgetary. or other interest.
The Executive must recommend to the Council whether funds to
support solar energy should be incorporated' in a energy specific
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80
81
~gs-Clean
Energy Renewable Technology\BiIl 2 Committee. Doc
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Bill No. 8-14
82
83
84
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86
87
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89
90
91
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99
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108
capital improvement budget. utility Non Departmental Account. or
other mechanism to overcome any funding gap to meet the renewable
energy target.
[[8-56. Project feasibility assessment.
ill
The Director must perform
~
feasibility assessment to find whether
~
covered County building can be retrofitted cost effectively to include
clean renewable energy technology. The Director may consider other
factors, including:
ill
ill
ill
ill
ill
®
ill
ill
(Q)
the cost to the County;
any safety or security issue;
any cost savings from the installation;
any clean energy job creation;
the clean renewable energy technology capacity of the building;
environmental benefits;
the technological feasibility of
~
retrofit; and
applicable zoning requirements.
If the Director finds that installing clean renewable energy technology
on
~
covered County building would not be cost effective, the Director
must transfer expenditures from the covered County building project
equivalent to 2% of the projected total cost for use in another
applicable project, unless no applicable project is approved in the
Capital Improvement Program. The County Council must approve
any fund transfer between projects under this Section
Qy
resolution.]]
8-[[57)]
~
Alternative financing.
ill
An alternative financing arrangement which allows leveraging of
federal, state, utility, and other incentives, including any grant, lease­
purchase agreement; power purchase agreement, or energy savings
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~gs-Clean
Energy Renewable Technology\Bi112 Committee. Doc
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Bill No. 8-14
109
110
111
112
113
114
115
performance contract, may meet the clean renewable energy
technology requirement under this Article.
ill
8-[[58]]
~
The purchase of Renewable Energy Credits does not meet the clean
renewable energy technology requirement under this Article.
Administration; reporting.
The Department must administer this Article using accepted principles
of sound accounting and fiscal management.
W
116
117
118
119
120
121
122
123
124
125
126
127
128
[[W]] (hl
The Department must submit an annual report to the County
Council and County Executive
Qy
April
1
each year describing:
ill
ill
ill
ill
the added clean renewable energy technology generation
Qy
each project;
the revenues and expenditures of each project;
each project supported
Qy
the Program; and
[[the annual savings to the County's utility costs from each
supported project]] the cost and energy savings resulting from
the program.
[[Sec.
2.
Effective date.
Article VIII, inserted by Section 1 of this Act,
applies to each new or major renovation public building project for which an
application for a building permit is filed on or after January 1, 2014.]]
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B~gS-Clean
Energy Renewable Technology\BiII2 Committee. Doc
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LEGISLATIVE REQUEST REPORT
Bill 8-14
Buildings County Buildings
-
Clean Energy Renewable Technology
DESCRIPTION:
Would require new or extensively remodeled county buildings, to
generate at least
1
kilowatt of renewable energy for every
1,000
square feet of floor area.
Current County law does not set specific standards for the use of
renewable technology in County buildings!
To achieve greater use of clean renewable technology
in
the
construction or extensive modification of County buildings.
Department of General Services, Office of Management and Budget
To
be
requested.
To be requested.
To
be
requested.
To
be
researched.
Amanda Mihill,
240-777-7815
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
F:\LAW\BILLS\J 408 County Buildings-Ciean Energy Renewable Technology\LEGISLATIVE REQUEST REPORT.Doc
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ROCKVU.LB,
.MARYLAND
MEMORANDUM
February 5, 2014
TO:
FROM:
or, ·tce of Management and Budget
; epartment of Finance
Bill 2·14,
Environme~tal
Sustainability - Buildings·- Benchmarking
Bill 3·]4,
Buildings .... Energy
Efficiency -
Energy Standards
Bill 4-14,
Street and Roads .... County Street Lights
Bill 5-14, Environmental Sustainability _. Social Cost of Carbon Assessments
Bill 6-
i
4,
Environmental Sustainability -
Office of
Sustainability - Established
Bill 7-14. Contracts and Procurement - Certified Green Business Program
Bill 8-14, Buildings - County Buildings - Clean Energy Renewable Technology
Bill 9-14, Environmental Sustainability - Renewable Enerh-'Y ­ County Purchase
Bill 10-14, Buildings - Solar
Permits-
Expedited Review
Bill 11-14, Buildings Electric Vehicle Charging Station Permits - Expedited
Review
SUBJECTS:
As
required by Section 2-8IA of the County Code, we are infbrming you
that
transmittal of
the fiscal and econornic impact statements for the above
referenced
Je.gislatioll will be delayed
because more time is needed to coordinate
with
the affected departments, collect information, and
complete our analysis of the fiscal and economic
impacts.
While we
ar~
110t
able to conduct the
required detailed analyses
at
this time,
it
is clear that a number of these bills could have significant
fiscal impacts.
Due to this year's heavy workload on Executive branch staff in developing
both
a full
('~pital
budget and an operating budget.. the fiscal and economic Sk'ltements
will
be
transmitted after March
17,2014.
JAH:fz
cc:
Bonnie
Kirkland, Assistant
Chief Administrative Officer
Lisa Austin,
Offices of the County Executive
Joy
Nunni, Special Assistant to the County Executive
Patrick Lacefield,
Director, Public Information Office
Marc P. Hansen, Office of the County Attorney
Robert
Hagedoorn,
Department of Finance
David Platt. Department of
Finance
Alex Espinosa, Office of Management and Budget
Mary Beck, Office of Management
,md
Budget
Naeem Mia. Office of Management and Budget
Felicia Zhang, Office of Management and Budget
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,~,
~.
MONTGOMERY COUNTY cOuNo:L
R,,,,'lt-VLLLE. M.A.IlYLJ\«o11l
Rm,iEk BUl.ixl!.k
COliNCU.JII.b\UIC
D'~T1lICT
I
CtlATl'Ol'l
TlAN srORTA.rII)N. 1l'lfRASTR
1.1
CTV·R
I;
ESE.AG'·
a
Eth'III.OlolhlEN·T COMlIftTTE£
Januaty
14.101:4
Dear
Colleagues,
Next
wetk
I will
beintrOdudng
a
pacbi~()t
13
energy/en~entaJ .~
that
are
daipd
to
~
tbat
~
COuuty remaiDS
at
the.
stlsfJiiMbility
forefioDt.
I WOUld
be
pleased
ta
ha\1I
you cosponsor
som.c
or
~
of
tbc!Ie.~
These
measures
focus
on
renewable energy. energy
d6cieocy.
1tabSpOrt&tion.
and
gO\tel1UJlCJlt
~ty.
I have lltacbcch
fact
sheet
Iba1
~
a b,tief
descri13iOli
of
each
Dtlhem.
and
or
~
would
be;
happy
tn
disc.u.ss
any
of
them
in
greater
detail
should
you
have
quesdorua..
I
was inspired
by
oUt
Cllun~rs
decision to
assert
ita
lad~p
in
the
context
of
redtaring
the
gap
iii
income
disparities
bY
passiD&
a
1oc:il
JriiniInum
wag~
law,
I
JbiDk
all
of us
appreciate
!.hat
the
federal IOvcmment
bas
bc:eome so dyJfimctioDal
that
we
can
expett UUlc pro8feSS on many orlbe
issues
we
CBfC
deepty
about.
Indeed.
B,mcc
~
of
Brookings
~tly
dcseribcdtbe
We;al
govemmcnt
as a
'1ar&e.bcalth
insurance
compiDy
With
manny."
His
lhe__
wbic;h.I
share,
is
that
ow
governing paradip
has
shifted
from
a:topdoW1i
Jed
by the
teder.U
auvC'lIl.ment
to
a
bottom.·up.Jcd
by local
gO'llCmments
like
OI,lB. .
J
say
all
of
this
~
we
nc,ed
to
do
marc
if
'NC
II'C
to
addrcs:s
cUuuatc
cbanp..
It
is
obviously
nol
a hoax
and·
\'t"C
kaow
what
we
need·
to
do to
addrcs:J
il.
We need to
usc:
less
coc:rgy
and
c1earier eoer&Y. Period. lllia.'pacUa.c of biUs
is
Iakcn
in
many
initahcca
ftom
wbat
oLbc:r
~uajuriscticticms
are
dO.ing-
from
Cbicagn
to
~
ta
Calit'orQia
and
New YOlk
swes.
TIaey,an:
a
mixofle«diua
by
example,
~
sr.eea
businesses, .
supportina
market
~
adopcina
mqre
exacting
standaIds,
and
holding
cur
countygovciDment accountability.
Holding ourselves
~WJtablc=is
important.
Whca
the
CQuncit
passed
.,similar
package in
2008,
y.-e
~ed
a
S.ainabili11
Worldq
Group
with
&be
principle
responsibility
for
gu;1ding
our
Count)'
to
achieve our fonnalgQll of
~n.8 ~U$C
gas
emissions
by 80
pen::eDt
by
2050.
It
js time
DOW
to
make this a
core
aovemmcnt
STEI.lA
8.
W'EIIIa
0I'FtC!
~.
111)
MAIrtWlD
AWIU',
6'111
F'UXlI.
AtXIMW.
~ ~
240:-m-ms oa2.40-m·J9O(J,
TrY
::t.m-1914,
FAX
240-m-7989:
www~~~
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res:ponsibllity~
and
this
packtw·!ncI\1~
a.Jl1C8SlR
tbet
will
c:reate
anoff'n=o
pf
SUSl;ainability within
Ol:~
whose principal :responsibility will
be
to
mODitDt
how
we
are
ooins
and
to
hdp
develop
the
policies-a
practices
tbM
will
Jet
us'"
~
we
need
to
be,
Ihops
yOu
wil1.join
me
in
mQ.ing
sure
Mon~ct)'
C,Qunty
bumishes
its
rcpu:tatlon
8$ •
c~unitytbat
embnIces
sustaiubility
4t
®r
t~
..
Sincerely..
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AIA Potomac Valley
A Chapter of the American Institute
of
Archltects
Date:
To:
February 11, 2014
Roger Berliner, Nancy Floreen, Hans Reimer
Montgomery County Council, Transportation and Energy Committee Members
American Institute of Architects, Potomac Valley Chapter
From:
Subject: February 11, 2014, Public Hearing on Proposed Environmental and Energy Bills
The local American Institute of Architects, Potomac Valley Chapter (AIA-PV) is writing to provide comment
on proposed environmental, sustainability, green building and energy legislation that is summarized in
Attachment
A.
Throughout 2013. the AIA-PV has been working to assist the Department of Permitting Services by
providing multi-disciplinary expert review and comment on green building codes that the county is
considering adopting. We have submitted detailed comments to the Department and urged them to
proceed slowly and cautiously in order to give design professionals. builders. and owners time to acclimate
to the reqUirements, especially criteria that have the potential to slow economic development in the county.
We advise you to do the same before moving forward to adopt new or revised environmental and energy·
legislation.
In addition. we advise you to seek green building
code solutions
that are effective industry-standard tools
to achieve your goals and avoid regulations that make development more time consuming and confusing.
Sincerely,
Eileen Emmet, AlA, IgCC Task Force Co-Chair. eemmet.aia@gmail.com
William (Bill) LeRoy. AlA, IgCC Task Force Co-Chair, wI70@icloud.com
cc:
Loreen Arnold, AIA-PV President 2014, larnold@ktgy.com
Scott Knudson, AlA; AIA-PV Past-President 2013, sdgknudson@gmail.com
Ralph Bennett, AIA-PV. IgCC Task Force, ralph@bfmarch.com
Dan Coffey, AIA-PV, IgCC Task Force, dcoffeY@therrienwaddell.com
Attachment A: AIA-PV July 30,2013 IgCC Executive Sumrriary
Attachment B: AIA-PV Feb. 4. 2014 Letter to Diane Schwartz-Jones w/AIA-PV Executive Summary
7.30.2013
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AlA Potomac
Valley
A Chapter of the American Institute of Architects
Attachment A
2-14: Benchmarking
Benchmarking typically means a baseline against which performance is measured. Reporting for a year is
required here (reasonable given seasonal variation) using Portfolio Manager (appropriate), but continuing
energy reporting is inevitable and could be addressed by the legislation.
3-14: Building Energy Efficiency - Countywide
The County adopted the International Energy Conservation Code in 2013. This proposal refers to other
energy codes included in'LEED, and its impact should be assessed. Assumedly, the law intends to include
LEED v.3; it should specify since vA is more stringent. LEED addresses many more issues than energy; if
energy is the concern, it may be better to use energy codes.
4-14: County Street Lights
The assumed purpose is to reduce energy costs while maintaining appropriate lighting levels. LEED may
not be, and is not the only answer here. So energy performance of possible alternatives should be
addressed.
5-14: Social Costs of Carbon
Good intention - Many sectors of the economy exist only by shedding externality costs onto others. This
also addresses the equity leg of the three-legged stool of sustainability.
Metrics here are new, unevenly available, and contentious. As long as the measurements are for
information and not used to penalize or qualify projects, this may be a useful window into real sustainability.
6-14: Office of Sustainability
Parallels such agencies elsewhere - their success should be studied before full commitment. Full inclusion
of appropriate agencies should be mandated - turf wars are inherent in the placement of such an agency
within DEP. Implementation expertise is in permitting. Consider attaching to the Executive.
7-14: Certified Green Business Program
Which Certification will DEP use? Without this, it is difficult to know what the impact will be. The procedures
included for selection of a system or systems will take a year, at least.
8-14: County Buildings. Renewable Energv Technology
This assumes that all county buildings can feasibly provide 1kw/1000 sf by photovoltaic generation. This
may not be feasible for all buildings - offsets and other on-site energy technologies should be permitted
including ground source heat pumps which LEED does not recognize as on-site energy. Renewable Energy
Credits be clarified in lieu of 'Offsets.'
9-14: Renewable Energy Purchase: 50% by next year; 100% by 2020
Assumedly, this addresses County government's energy use. Will this extend to quasi-government
agencies like HOC? Do they know about this?
10-14: Expedited Review of Solar Permits; 50% permit fee reduction.
Good idea.
11-14: Electric Vehicle Charging Station Permits; 50% permit fee reduction
Good idea.
12-14: County Employee Telecommuting
Good idea.
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AlA Potomac
Valley
A Chapter of the American Institute of Architects
ATTACHMENT A
EXECUTIVE SUMMARY
AlA-PV
Igee
Task Force
July 30, 2013
Start Small:
There are many reasons to start small and expand with subsequent revision cycles. This allows time for the
industry to come to grips with the new requirements of green codes.
It
also allows the opportunity to gather
real data on the costs and benefits of its implementation.
Montgomery County has diverse building types in urban, suburban and rural settings therefore allowing
alternative compliance paths is helpful and necessary to address these varying conditions.
One method for a phased approach is to make compliance optional and create incentives for complying
with the code. Incentives can take the form of tax breaks, expedited permitting. or reduced permitting fees.
Another method is to make the most demanding requirements electives and specify a minimum number
required. This also provides the opportunity to collect real world data. There is still skeptiCism about the
business model for green building and energy efficient operational directives. Carefully crafted electives
and pilot studies can help address that issue. This is the approach taken in the PV-Task Force's detailed
recommendations in Attachment B.
Administrative Provisions:
The manner in which the DPS will manage review of projects under the green code is critical to its success.
The PV-TF recommends that the DPS create standard forms, templates, and electronic submission
protocols and have them in place on the date of adoption in order to administer the requirements in an
efficient and effective manner. The requirements of the code also indicate a need for additional DPS
review staff to avoid lengthening already long review times. DPS staff will need to be educated and fluent
in the code criteria of several compliance paths because alternative compliance paths will have the best
chance of a successful implementation process.
Jurisdictional Requirements:
Chapter 3 Jurisdictional Requirement 301.1.1, Scope Application: The task force recommends retaining
the option of IgCC
.Q!
ASHRAE 189.1 compliance paths, thus retaining IT!aximum flexibility for the design
team to choose the compliance path applicable to the building type and location, The task force further
recommends that LEED Silver should be allowed as an alternative, non-mandatory, compliance path,
because it has an established format, method of compliance, and documentation templates.
Electives:
Table 302.1. Requirements Determined by the Jurisdiction: The task force recommends striking the
adoption of Table
302.1,
the list of
22
additional requirements to be designated by the AHJ. The group
feels that the overall number of electives required should apply to the entire code with some exceptions as
noted in the Detailed Chapter Analysis and Recommendations.
Flexibility for the applicant is important. For new construction, 20% of electives are a reasonable number if
the credits are spread among a minimum of four chapter categories. For existing buildings. 15% of
electives are a reasonable number if the credits are spread among a minimum of two chapter categories,
1
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AlA
Potomac Valley
A Chapter of the American Institute of Architects
Square Footage {SF} Size Thresholds:
Across-the-board square-footage size requirements will make adoption of the IgCC a hardship for many
project types. The recommendation is to scale the SF thresholds based on the industry standards for type
of use and energy use because the variables fall into three categories: a} applicability of the code, b)
mechanical systems, and 3) envelope design. This will take more time to analyze and the PV-Task Force
can assist the DPS to better define these thresholds.
Adoption in Other Jurisdictions:
While the scope of regional adoption of the IgCC was not a primary task for the PV-Task Force, the group
notes the following observations in regard to green code adoption in the region:
Baltimore City Adoption
• In Baltimore City all newly constructed, extensively modified buildings that have or will have at least
10,000 square feet must be LEED-Silver certified or comply with the Baltimore City Green Building
Standards (a LEED-like standard).
• Baltimore City is soon to introduce legislation expanding the options for building owners to select
from a menu such that a project can be: LEED-Silver certified, or complies with the IgCC, or meets
the ASHRAE 189.1 standard, or satisfies Enterprise Green Communities requirements, or
complies with ICC 700. (This menu approach is similar to what DC is moving to.)
• The menu approach under legislative consideration will amend the existing Baltimore City Green
Building Law whereby the listed options may be available in
4th
quarter 2013 and the existing
city-drafted regulatory alternative to LEED will remain available until June 1, 2015.
• The only real controversy in proposed legislation has been about the definitions for modified (i.e.
the threshold for renovated buildings) structures and in the newly proposed code nearly all
renovations will have to comply with the law.
Washington, D.C.
• Although typically slower than Maryland in adopting new code cycles, DC includes stakeholders in
the process of code adoption. In the case of the IgCC, to date the input seems to be a great
success.
• DC is considered a national green building leader. Green building standards there do not seem to
be a deterrent to deveiopment.
• DC has adopted a modified approach to IgCC adoption. They moved many items to the Appendix
section and recommended 15 credits be achieved, in any category, from 75 credit options.
• DC is more urban than Montgomery County, yet has several paths to compliance: IgCC, ASHRAE
189.1, LEED, and Enterprise Green Communities
Virginia Adoption
Adoption of the IgCC does not seem imminent. In conversations with VA officials, one of the main
issues in adopting the IgCC is related to the land use, zoning, related impact the overlay code might
have. Since the state of Virginia sets building codes, without local amendments, tpe IgCC might be
considered too difficult to implement with such a diverse landscape, the officials stated that they do
not plan to adopt at this time. If less restrictive to permit there, it could be perceived as an economic
disadvantage to build or renovate in Montgomery County.
2
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AIA Potomac
Valley
A Chapter of the Americal1lnstitute of Architects
February 4, 2014
Ms. Diane Schwartz-Jones, Director
Department of Permitting Services
255 Rockville Pike, 2nd Floor
Rockville, Maryland 20850-4166
Dear Ms. Schwartz-Jones,
Copy via email to diane.jones@montgomerycountymd.gov
Re: AlA-Potomac Valley Chapter, IgCC/ASHRAE 189.1 Task Force Recommendations
On July 3D, 2013, the AlA-Potomac Valley Chapter (AIA-PV) submitted recommendations to you in regard
to possible adoption of the International Green Construction Code (lgCC). As you know, the AIA-PV has a
task force group who has been working together on this subject matter for some time. The group is
comprised of a multi-disciplinary group of design professionals: architects, engineers, a
developer/landscape architect, a builder, and others.
This letter provides supplemental information that responds to your staffs request that our group also
review and make recommendations in regard to possible adoption of the ANSIfASHRAElUSGBC/IES
Standard 189.1-2011 - Standard for the Design of High-Performance Green Buildings, Except Low-rise
Residential Buildings (also referred to as ASHRAE 189.1, 2011. ASHRAE 189.1 Is an alternative means
of compliance incorporated into the IgCC 2012 codebook. We hope this additional information meets your
needs:
As mentioned
in
our July 30, 2013 letter, the AIA-PV group still recommends that Montgomery County:
• Refer to our July 3D, 2013 Executive Summary (Attachment A) and detailed recommendations
previously submitted
• Proceed slowly and cautiously in order to give design professionals, builders, and owner's time to
acclimate to the requirements, especially criteria that have the potential to slow economic
development in the county while other nearby jurisdictions are taking a measured approach or not
yet shifting to these codes.
• Adopt the IgCC and alternative compliance paths (including ASH RAE 189.1) and do away with the
current Montgomery County Green Building Law.
In addition, we recommend you create an industry advisory panel to make a solid implementation plan with
the Department of Environmental Protection (DEP). We feel this is important because most of the details
and issues to implement the County Council's proposed green building legislation are at the direction and
responsibility of the Director of DEP and because those legislations overlap with requirements in green
building codes that DPS is proposing.
.
The following items in Attachment B summarize the detailed analysis and recommendations of the
AIA-PV-Task Force in regard to ASHRAE 189.1*:
.•
Section
Section
Section
Section
Section
Section
5, Site Sustainability
6, Water Use Efficiency
7, Energy Efficiency
8, Indoor Environmental Quality
9, The Building's Impact on the Atmosphere, Materials, and Resources
10, Construciton and Plans for Operation
*
Unlike the IgCC, ASHRAE 189.1 does not have a chapter for historic and existing buildings so
comments on those building types have been incorporated into each section's recommendations.
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AIA Potomac Valley
A Chapter of the American Institute of Architects
Once you have had a chance to review our recommendations, the PV-Task Force members would be
pleased to meetwith you in person to answer questions, clarify our recommendations, or address any item
of interest that we may have overlooked. Thank you for giving us this opportunity to assist you.
Sincerely,
Scott Knudson, AlA; AIA-PV Past-President 2013, sdgknudson@gmail.com
Eileen Emmet, AlA, IgCC Task Force Co-Chair, eemmet.aia@gmail.com
William (Bill) LeRoy, AlA, IgCC Task Force Co-Chair, wI70@icloud.com
Attachment A: AIA-PV July 30, 2013 IgCC Executive Summary
Attachment B: AIA-PV ASHRAE 189.1 Recommendations
cc DPS: Hadi Mansouri, hadLmansouri@montgomerycountymd.gov,
Mark Nauman, mark.nauman@montgomerycountymd.gov
Hemal Mustafa, hemal.mustafa@montgomerycountymd.gov
Cc: IgCC/ASHRAE 189.1 Task Force Members:
Ralph Bennett, AlA; Bennett, Frank, McCarthy Architects
Bruce Blanchard, Senior Consultant, Polysonics Acoustics
&
Technology Consulting
Daniel Coffey, Vice President, Therrien Waddell, Inc., Chairman USGBC-NCR, Montgomery County
Chapter
Stephen Kirk, International Code Council, Associate Member
Suketu Patel AlA LEED AP BD+C; President, Integrated Design Studio LLC
Kirill Pivovarov, AlA, LEED AP; Principal, RTKL Associates Inc.
Steven Schwartzman. AlA. LEED AP; Associate Principal, WDG ARCHITECTURE
Geoff Sharpe, ASLA
Catherine E. Sheehan, AlA, LEED AP
Adam Spatz, PE, LEED AP; Senior Mechanical Engineer, Greenman-Pedersen, Inc.
. Paul Tseng, PE, GxAP, CPMP, CMVP CEM, LEED AP; President, Founder, Advanced Building Performance
Amy Upton, LEED AP BD+C; Director of Environmental Design, Senior Associate, Grimm + Parker
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Montgomery County
Finding ways to better share monthly aggregated energy data with building owners/operators is
critical to understanding and improving building performance across our region. But it's easier
said than done, since it requires cooperation among industry stakeholders. On October 30, the
USGBC-NCR Montgomery County Branch convened a group of local stakeholders, including
building owners, utilities, governments and advocacy groups, to discuss ways to improve the
flow of building data in Montgomery County, MD.
There are several structural constraints and obstacles that prevent utilities from providing
actionable energy data to building owners.
In
many cases, utilities across the country do not have
the technical infrastructure or staff resources in place to provide aggregate energy usage data to
building owners. However, building owner$ have market-established tools at their disposal, like
the Environmental Protection Agency's Portfolio Manager, which they can use to track building
performance. Additionally, utilities must meet rules and regulations of state public utility
commissions, which can unintentionally create additional barriers to how utilities are able to
share data. Many of these restrictions are related to privacy concerns associated with sharing
individual tenant data.
The Montgomery County Energy Summit, sponsored by the JBG Companies, Pepco and Boland,
brought experts together to discuss the barriers and explore solutions for improving access to
aggregated energy building data. Access to this critical data will empower building owners to
make smarter energy decisions and better enable benchmarking ofpublic and commercial
properties, ultimately helping improve performance and reduce energy usage. The summit
brought together local utilities and commercial real estate owners and operators, including local
staff from Pepco, Baltimore Gas
&
Electric, The Tower Companies, Brandywine Realty Trust,
Akridge, and First Potomac. Additionally, the summit drew several Maryland state and
Montgomery County officials and local advocacy groups to discuss the current barriers to
sharing energy data and opportunities to improve this process.
Dialogues like the one in Montgomery County show that private sector stakeholders can have a
unified voice in support of improved data sharing policies. While the County is considering a
benchmarking and disclosure law, USGBC-NCR's Montgomery County Branch believes
proactive conversations on data access between all interested parties is the most effective way to
ensure cooperation and the establishment of best practices in pursuit of energy efficiency.
For that reason, the Branch has formed a working group to continue discussing opportunities to
improve access to utility data. For more information on becoming part of the group, please
contact us.
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ENVIRONMENTAL BILLS (2-14 THROUGH 14-14) RESPONSES: .
The USGBC NCR Montgomery County Branch has had the opportunity to review the packet of energy and
environmental measures proposed by Councilmember Roger Berliner and many of his colleagues.
We believe revised language within the thirteen proposed bills is required to provide clarity, using lessons
learned from other jurisdictions, which have hastily adopted legislation without fully understanding the fiscal
impact or administrative barriers. Over time those jurisdictions have been forced to correct issues and have
consequently wasted resources, while frustrating residents and businesses. While some of the proposed
legislation may have a small impact, others might have a much larger price tag.
The true impact on Montgomery County for implementing the proposed legislation should be assessed taking
into account the diversity of our county. We have environments that range from urban to rural. The future
plans for growth incorporating recommendations from organizations and agencies such as USGBC, Maryla nd
Energy Administration (MEA), Department of Energy (DOE), and many others that are well versed in these
issues. We recommend the County Council allow time for discernment and discussion of concerns among its
stakeholders prior to taking a position on these bills.
In regards to the specific proposed bills we have the following comments:
Bill 2-14 - Environmental Sustainability - Buildings - Benchmarking.
The USGBC NCR Montgomery County Branch had an Energy Data Sharing Summit in October 2013 to discuss
this issue with many key stakeholders like County, State, and Federal Agencies, utilities, property owners,
technical experts, other local jurisdictions,and industry professionals. Through this forum we have identified
the following issues to be addressed prior to implementing required benchmarking of buildings in our county:
Benchmarking requirements should first apply to County owned and leased buildings and the information
should be publically available. Once the county can show they have worked through administrative issues
then it would be appropriate to roll out to the private sector.
Energy auditing and retro commiSSioning is expensive and the industry does not have a pool of adequately
trained profeSSionals to fulfill this requirement. However,new data access
&
analysis technology will
reduce the cost of audits and retro commissioning and facilitate ongoing virtual building performance
mon~ri~
.
Data provided by the utility companies must be in a clear and consistent format and be flexible to allow for
automatic uploading to uniform platform such as ENERGY STAR, DOE/ASHRAE smart meter interfaces, etc.
The benefits to data access are known by the industry and the first step is getting the needed data from
the utilities. Utility commissions and elected officials should coordinate on data access so that utilities and
building owners have clarity on how data should be tracked and presented to eliminate privacy concerns
and still provide usable data to owners. Condo communities with one master meter are common in the
County. Enhanced access to meter data would be helpful, but many have expressed interest in cost
effective solutions to sub-metering.
Pepco is currently aware of this issue and is providing aggregated data, directly uploaded to ENERGY STAR
in the District of Columbia, following the Sustainable DC II Legislation.
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The key findings regarding Bili 2-14 is there will be a fiscal impact for businesses in terms of benchmarking and
the required energy audit. The cost to property owners should be assessed and determined if the financial
burden is reasonable prior to passage of the bill. There may be opportunities for incentives to help with
implementation for small businesses in our county. They have not taken advantage of existing state incentive
dollars due to a distrust of the current program. This is attributed to the complexity of the process and
experiences of other business owners where misinformation and errors have increased cost instead of saving
money.
Bill 3-14, Buildings· Energy Efficiency - Energy Standards
• The bill should focus on moving toward a sustainability code solution like the (gCC or ASHRE 189.1 with
modifications to coordinate with current codes and regulations.
• Offering a mUltiple compliance path option between LEED V3, IgCC, or ASHRE 189.1 should be allowed
until the codes have been better coordinated.
• Significant issues have arisen in jurisdictions where new codes conflicted with existing regulations.
• The County should conduct an industry impact study to fully understand the economic impact to
businesses, our community and county agencies. The intent of this regulation should show a leadership
path for a successful sustainable future.
Bill 4-14 Streets and Roads - County Street Lights
• The county should allow an appropriate engineering solution for each location, along with Life Cycle
Assessment, to determine the most effective lighting solution in lieu of a straight LED requirement.
• This alternative allows for site specific engineering solutions, for location effectiveness and efficiency, not
merely complying with a regulatory requirement.
• Lighting technology is consistently changing and any legislation should be adaptable to the future changes.
Bill 8-14 Buildings - County Buildings - Clean Energy Renewables
• This bill should be a goal; not a mandate. A better solution is to consider the life cycle cost
effectiveness of this requirement and how it would be implemented by county capital construction
and operated and maintained by the county staff.
• Most buildings will not be able to meet this goal along with other building regulations; such as storm
water,management,
HVAC
systems, etc.
• Long term monitoring and maintenance of these sY$tems is challenging and there is a high risk of
failure.
• The cost ratio of meeting the renewable requirements to the total project cost is very high and
competes with overall county efforts to limit capital building spending, posing financial problems for
many county projects.
• County agencies have experience with Power Purchase Agreement (PPA) where a private entity owns
and operates much larger systems. Although this has met with some success, the current PPA financial
climate has made building size systems less than attractive to PPA providers.
An alternative compliance path may be to allow purchasing renewable energy credits (REC), which are
currently available and comply with the current legislated mandate. The county agencies are currently
required to purchase at least 20% of their annual electrical load in REC's.
Thank you for the opportunity to comment on these bills. We may have further comments as additional
discussions and comments identify other impacts.
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TESTIMONY ON BEHALF OF COUNTY EXECUTIVE ISIAH LEGGETT
ON ENVIRONMENTAL AND SUSTAlNABILITY PACKAGE
Bills 2-14, 3-14, 4-14, 5-14, 6-14,7-14, 8-14, 9-14,10-14,11-14,12-14
February 11,2014
Good evening Council President Rice and members of the County Council. My name is Bonnie
Kirkland and I am pleased to be here on behalf of County Executive Isiah Leggett to testify on
the package of environmental and sustainability measures introduced on February 4, 2014 by
Councilmember Berliner and others.
Mr.
Leggett supports Councilmember Berliner's initiative
and the Council's efforts to address the need for more sustainable development in Montgomery
County. Following up on recommendations from the Sustainability Workgroup, this package of
renewable. energy, energy.efficiency and sustainability measures will take the County to the next
level of environmental excellence.
Sustainable development has been defined as meeting the needs of the present without
compromising the ability of future generations to meet' their own needs.
1
The path forward
requires understanding and planning: understanding how existing buildings perlorm and how
planned buildings are expected to perfoim; and designing buildings and other infrastructure that
reduce materials consumption, reuse materials, reduce energy consumption and maximize the
use of renewable resources.
County Executive Leggett recognizes that the path forward will involve substantial change and
commitment on the part of both the public sector and the private sector. He is committed to
working with the Council on this package during the coming weeks to develop the most
progressive and reasonable legislation achievable that will balance both the compelling need to
achieve sustainable development and the budgetary realities faced by the County and our local
businesses to fully implement the approved changes the legislative package requires.
Stewardship for future generations has been a cornerstone of
Mr.
Leggett's Smart Growth
Initiative in terms of planning for future growth at appropriate transit oriented locations. The
County Executive applauds Councilmember Berliner's and the sponsoring council members'
vision and recognition of the need for stewardship of our precious resources for future
generations.
1
International
Institute for Sustainable Development quoting from the World Commission on Environment and
Developm~nt
(WCED}.
Our common future.
Oxford: Oxford University Press, 1987 p. 43.
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March 12, 2014
Ms. Amanda Mihill, Legislative Attorney
Montgomery County Council
100 Maryland Avenue
Rockville, Maryland 20805
RE: County Council Bills on Sustainability and Energy Conservation
Dear Ms. Mihill,
Thank you for the opportunity to review and comment on the 13 County Council Bills for Sustainability
and Energy Conservation.
I have attached a copy of our own Sustainability Practice 6-40 for your information. M-NCPPC and the
Department of Parks are committed to environmental stewardship. Our organization has employed
energy conservation measures in many of our parks, facilities and operations over the past several
years. These measures include building temperature control, high efficiency HVAC units, low
consumption lighting and an aggressive recycling program. I am proud of our staff and their
achievements in reducing the environmental footprint of our extensive operations. The attached
Practice 6-40 provides documentation of our commitment to these important issues. We also provide
cost savings data in an annual energy conservation report available to the County Council, and our
progress has been significant.
For clarification on the pending legislation, please consider the following questions and comments:
2-14
• If we own land, but not buildings, will benchmarking be provided by building owners? For example,
aquatic centers or community centers located on park property might be affected.
• Does the benchmarking apply to buildings that are to be demolished within 4 years?
8-14
• We recommend that historic buildings as well as small buildings, such as restroom buildings and
storage sheds, be exempt. Language to define limits on the size or purpose of the buildings affected
is strongly recommended.
• If there are several buildings in a facility, would the requirements apply to every building contained
within the facility? A definition of "facility" may be required here.
• If the cost of renewable energy exceeds 2% of the total construction cost, funding equivalent to 2% of
the cost may be transferred to another project. Does it mean a project that has qualified renewable
energy cost can help other projects to be exempt? If so, do we need to identify which?
• We are concerned about the definition of "Director" in the definitions section of this bill. Currently,
we have many county-financed structures (generally as a result of G.O. bonds) on parkland, and the
DGS Director currently has no role in managing or benchmarking such structures. We recommend
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clarifying language that the "Director" means the DGS Director OR the Director of the agency
managing the affected property.
Please keep in mind the Parks infrastructure is quite complex, including many structures that do not fit
the traditional definition of office building or warehouse structure. We also have hundreds of aged and
often historic buildings, small service buildings, structures or buildings of varying sizes in remote or
constrained locations, and a variety of other specialized facilities. Broad-based legislation that could
include all of these could ultimately impact us significantly in the benchmarking process. We request
clarification regarding the total impact Some portions of this legislation may have on such facilities.
Suggested amendments are attached for your consideration.
Overall, we are encouraged by Councilmember Berliner's goals to advance sustainability in buildings
and operations. Such conservation is a core mission of the Department of Parks and a mission we have
already committed to achieve.
Thank you for the opportunity to comment.
Sincerely,
Mary R. Bradford
Director
Department of ParkS-Montgomery County
The Maryland-National Capital Park and Planning Commission
Attachments: Practice 6-40
Legislative matrix analysis
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county Council Bills on Sustainability and Energy Conservation
PROPOSED AMENDMENTS
Bill 2-14 Environmental Sustainability - Buildings - Benchmarking
18A-38 Definitions
Line
21 :
...
Covered building
does not include buildings that are to be demolished within 4 years
or any building with more than 10% occupancy which is used for...
BiIIS-14 Buildings - County Buildings - Clean Energy Renewable Technology
8-54. Definitions
To modify line 22:
Director
means the Director of the Department or the Director's designee; or the Director of the
agency managing the affected property.
8-55 Clean energy renewable technology required
To add:
(d) All historic buildings and any other buildings that are smaller than 100,000 square feet are
exempt from this requirement.
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THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION
I
Approved by
The Commission
INo.
6-40
Initially issued: 11/1/76
Lastannended: 11/19/2012
Last reviewed:
11/19/2012
M-NCPPC Sustainability Standards
AUTHORITY
This Administrative Practice was initially approved by the Executive Committee at its
meeting on October 4,1976, and last amended by the Commission on November 19,
2012.
~
Patricia Barney, Executive Director
RESCISSION
The Practice, as amended on November 19, 2012, updates and replaces all other
internal sustainability procedures.
PURPOSE AND
BACKGROUND
This Practice (originally titled Commission Resource Conservation Program) was initially
established to communicate agency-wide policy on the conservation of utilities sources,
such as electricity, natural gas, fuel oil, and motor fuel. The Practice was revised on
November 19,2012 to update and replace initial measures through a broader
understanding of sustainability standards, which benefit the environment, our
workplace, and the communities we serve.
The Practice, as originally approved, has been revised as follows:
May 1,1979 and January 9,1980: Incorporated updated responsibilities due to
agency restructuring.
November 19, 2012: Policy amended to:
o Reflect more modern concepts in the area of sustainability, including:
Green building management strategies which meet nationally accepted
sustainability certifications for energy conservation and use of renewable
resources;
Procurement of goods and services aimed at high efficiency products and
other sustainable practices;
• Implementation of green development strategies in community planning,
landscape design and other site planning;
REFERENCES
Elements aimed to foster ongoing awareness among our employees and
patrons on sustainability objectives and programs; and
Updated County and State sustainability mandates.
Federal/State/Local Standards:
Maryland Stormwater Management Act of 2007 and accompanying Environmental
Site Design Standards
Maryland Code, State Finance and Procurement,
§
5-312, High Performance Building
Act
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• Prince George's County Executive Order 22-2007, Goes Green Program
• Prince George's County Energy Policy
• Montgomery County Bill 32-07, Environmental Sustainability Climate Protection
Plan
• Montgomery County Code Section 18A, Energy Policy-Regulations
• Montgomery County Resolution 16-757, County Energy Policy (with reference to
Interagency Committee on Energy and Utilities Management)
• Leadership in Energy and Environmental Design Certification Standards as issued by
the United States Green Building Council
• Standards and Guidelines for Sustainable Sites (United States Sustainable Sites
Initiative)
• Maryland Sustainable Communities Act of 2010
M-NCPPC Policies:
• Administrative Practice 4-10, Purchasing Policy
• Administrative Practice 2-18, Work-Life Program and related Administrative
Procedures including:
o 95-02, Compressed Scheduling
o 95-04, Telework
o 03-02, Alternative Commuting Resources
APPLICATION
DEFINITIONS
This Practice applies agency-wide.
Chlorine-free Processing: Paper is whitened without the use of chlorine in the process
(PCF), eliminating production of chlorinated toxic chemicals and dioxins in processing
wastes.
Energy Star: The Department of Energy rating for appliances and building products that
minimize the use of energy.
Environmental Site Design (ESD): Using small-scale stormwater management practices,
nonstructural techniques, and better site planning to mimic natural hydrologic runoff
characteristics and minimize the impact of land development on water resources.
Forest Stewardship Council (FSq Certification: A third-party guarantee that wood
products, including paper, are harvested from a certified sustainably managed forest.
Green Practice: The wise use of resources, conservation, and innovative environment­
friendly designs that create or enhance sustainability.
Greenhouse Gas (GHG): A gas that increases the atmospheric reflection of infrared heat
emissions from Earth's surface, measured in carbon dioxide equivalent.
Administrative Practice 6-40, M-NCPPC Sustainability Standards
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Leadership in Energy and Environmental Design (LEED): A building certification system
designed by the U.S. Green Building Council (USGBC) that promotes design and
construction strategies aimed at improving environment and resource stewardship. The
tiered standards, which use Certified, Silver, Gold, and Platinum, vary by project type
and are made available at USGBC.org.
Net Metering: Net metering is a policy that allows a solar-system owner to receive
credit on his/her electricity bill for surplus solar electricity sent back to the utility.
Post-Consumer RecYCled Content: Contains material that was consumed in a final
product and then recycled.
Renewable Energy Certificate: Also known as "Green Tags" and "Green Certificates" is
a tradable, non-tangible energy commodity that represents proof that one megawatt­
hour of electricity was generated from an eligible renewable energy resource.
Renewable Energy Certificates provide organizations a convenient way to purchase
renewable energy, offset carbon emissions, and encourage clean energy development.
Smart Growth: Urban planning that supports efficient and sustainable land
development and utilizes redevelopment that optimizes prior infrastructure
investments. Smart growth incorporates strategies such as mixed-use urban centers
that support and enhance public transit; promote walking and bicycling, provide for a
range of housing and retail options, and consume less land that can be preserved for
open spaces and natural systems.
Sustainable Sites Initiative (SITES): A rating system, similar to LEED developed by the
American Society of landscape Architects, that establishes voluntary national guidelines
and performance benchmarks for sustainable land design, construction and
maintenance practices.
Sustainabilitv: Creates and maintains the conditions under which humans and nature
can exist in productive harmony, and preserves resources so that they are not
depleted or permanently damaged.
POLICY
The M-NCPPC is committed to stewardship of the environment, our community, and the
workplace through the implementation of sustainable practices that preserve natural and
economic resources, reduce waste and consumption, reduce the carbon footprint, promote
green practices in our facilities and programs, and support the wellness of our employees and
community.
Sustainability efforts shall increase the value or longevity of services while reducing reliance on
resources and the negative effect on health or the environment.
Administrative Practice 6-40, M-NCPPC Sustainability Standards
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The goal ofthis agency is to lead and implement meaningful sustainability initiatives. The
sustainability goals outlined in this Practice are to be carried out as an agency, wherever
feasible, and implemented within each department. rhe feasibility analysis of initiatives should
consider the following:
• The prudent use of public dollars;
• The availability of green materials/services;
• The ability to maintain or improve existing service levels and safety; and
• The ability to safeguard the integrity of facilities/structures, including concerns for
historic preservation.
These goals are intended to serve as benchmarks that may be further enhanced on a
departmental, programmatic, or facility basis. It is recognized that certifications/standards
identified in this Practice may evolve over time. The agency shall be guided by the
certification/standard requirements that are in place at the time an initiative is being designed.
To implement this policy, each Department shall generate a Sustainability Plan that explains
how goals identified in this Practice are being implemented for its respective facilities,
operations or services. These Plans shall be presented to the Executive Committee by
September
2013
and updated at least every two years.
The agency's sustainability efforts under this Practice also will be supported through a
Sustainability Committee comprised of representatives from each department. The Committee
shall: ensure coordinated efforts for agency-wide initiatives wherever practical; share ideas and
expertise for the implementation on sustainability goals on a departmental level; prepare a
Sustainability Report to the Commission that describes initiatives implemented throughout the
agency, and recommend new or revised goals to ensure that the M-NCPPC stays at the forefront
of sustainability practices.
Specific requirements for development of Sustainability Plans and reporting results to the
Executive Committee and Commission are outlined in the Section titled Responsibilities. The
following goals and objectives are designed to guide implementation of this Sustainability policy.
I.
Utility/Energy Conservation:
Conserve natural and fiscal resources by eliminating
waste, improving efficiency, reducing the consumption of energy, and increasing the use
of renewable sources of energy. Whenever feaSible, new appliances and building
materials shall meet Energy Star or equivalent rating for high efficiency and energy
conservation. This should be in addition to also considering other environmental
attributes such as recyclability and applicable federal/state safety and building code
requirements.
A.
Utility Measurement and Monitoring
1.
Department sustainability coordinators shall collect utility use
information to develop/enhance utility management standards and
track the cost of each facility's utility consumption over time.
Administrative Practice
6-40,
M-NCPPC Sustainability Standards
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2.
Utility consumption trends shall be made available to facility managers
and Department Directors to evaluate and refine utility and cost saving
practices.
3.
Managers who operate buildings or spaces leased by the M-NCPPC
should work with the facility owners to include utility metering or
reporting for the leased space(s).
B.
Conservation of Electricity and Natural Gas
1.
In addition to established internal maintenance programs, departments
should pursue grants for energy efficiency studies, upgrades, and
retrofits for planned and existing facilities.
2.
All M-NCPPC facility managers should seek to meet Leadership in Energy
and Environmental Design (LEEO) Volume Program for Operations and
Maintenance, or LEEO for Existing Buildings: Operations and
Maintenance criteria, for at least a Silver or equivalent rating standards
for operations and maintenance. These standards are issued by the U.S.
Green Building Council which can be accessed through its website
(www.usgbc.org).
3.
4.
Where practical, indoor and outdoor lighting fixtures shall be
programmable or linked to occupancy or motion sensor(s).
Light emitting diodes (LEOs), daylight fixtures, or other efficient low­
energy lighting solutions should be used in place of incandescent,
halogen, or fluorescent lights, where practical.
5.
By 2020, the agency through coordination with the Department of
Finance, will strive to meet a target whereby 40% of its electricity is
produced or supported through renewable energy sources. These
sources may include, but are not limited to, the purchase of Renewable
Energy Certificates, onsite generation of energy from renewable sources
(such as wind, solar, geothermal, water, etc.), and/or the acquisition of
renewable energy from utility companies. This target may be adjusted
by the Executive Committee with input from the Secretary-Treasurer
based on fluctuating costs and availability of renewable energy sources.
6.
Renewable sources (such as solar, wind and geothermal) should be
considered for new and replacement systems where life cycle cost
savings are justified in addition to aggregate net metering or power
purchase agreements, among other financing or contract mechanisms,
to further reduce the Commission's carbon footprint with its energy
use, save costs, and further promote clean power alternatives wherever
practicable.
C.
Conservation of Water
1.
2.
Install and properly maintain automatic faucets, where practical.
Whenever feasible, utilize low flow toilets and other innovations to
reduce water demands.
Administrative Practice 6-40, M-NCPPC Sustainability Standards
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3.
Investigate and where feasible, install an efficient infrastructure for use
of rainwater or grey water at M-NCPPC facilities, including water
amenities and landscape watering.
4.
Upon learning of any abnormal water usage pattern, facility managers
shall investigate, locate, and immediately repair any leaks and
inefficiencies.
5.
6.
Strive to plant native trees and shrubs in landscaping.
Strive to reduce lawn areas to minimize the need for irrigation and plant
areas with appropriate drought tolerant native species.
D.
Management of Heating, Ventilation, and Air Conditioning (HVAC) Systems
Whenever feasible:
1.
2.
Insulate exposed piping and ventilation ducts in accordance with at least
LEED Silver or equivalent standard.
Integrate installation of high efficiency HVAC equipment in new
construction or in replacement plans for existing equipment, such as
Energy Star or equivalent.
3.
4.
Use programmable thermostats to minimize HVAC use when buildings
are not in use.
In the planning of new buildings or major renovations to existing
buildings, review insulation specifications to meet LEED Silver or
equivalent standards.
E.
Fleet Management and Use of Alternative Commuting Resources
1.
Employees utilizing M-NCPPC vehicles are encouraged to carpool with
other employees to conserve fuel, minimize operating costs, and reduce
environmental impacts related to pollution and congestion.
2.
Fleet managers shall assist Departments in assessing the functional
use/need of vehicles based on assigned work program needs, and
recommend vehicle purchases to most effectively meet these needs to
include factors such as fuel/energy efficiency, safety, and effective
operation. All new vehicle purchases shall consider the most energy
efficient options suitable to meet the indicated use for the vehicle.
3.
4.
Vehicle assignments shall ensure the most efficient use of the agency's
fleet.
To maintain highest operating efficiency, fleet managers should ensure
that all vehicles receive periodic maintenance consistent with
manufacturer specifications.
5.
Reduce impact of employee travel to and from M-NCPPC facilities by
implementing the following strategies:
a)
Implement feasible options and/orJncentives to encourage staff's
use of public transportation, regional commuting resources (e.g.,
ride share and car pools), and internal programs such as
departmental pool vehicles and van pools.
Administrative Practice 6-40, M-NCPPC Sustainability Standards
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b) Establish and encourage carpooling by M-NCPPC employees,
allocating reserved spaces for carpoolers.
c) Encourage the use of alternate work arrangements such as
Telework and Compressed Workweeks to reduce, among other
things, environmental impact and costs/needs associated with
workspace operations.
d) Capitalize on meeting and conferencing technology by using more
phone and video conference ca lis (includi ng webi nars for tra i ni ng),
even locally, to cut back on use of vehicles and travel times.
II.
Sustainable Acquisition and Use of Agency Supplies: Develop procurement
specifications that encourage the use of goods and services which support the agency's
commitment to sustain ability in areas including, but not limited to, resources
conservation, protection of the environment, and workplace health and safety.
A. Office Supplies and Furniture
1. Actively reuse office supplies whenever possible, maintaining a returned inventory
of supplies for reuse.
2. Durable office equipment, including furniture, should be considered for reuse or
repurpose by other M-NCPPC facilities/operations before it is recycled/surplused/or
disposed.
3. All disposal or external surplus/recycling of M-NCPPC property shall be coordinated
with the Department of Finance, Purchasing Office, to ensure-adherence to legal
dispossession of assets, with a preference placed on repurposing outside M-NCPPC
for the benefit of the community.
4. Where feasible, identify and use environmentally friendly cleaning supplies/other
products and services that are effective, enhance worker safety and health, and
meet or exceed federal/state safety requirements.
B. Printing and Copying
1. Utilize two-sided printing whenever one-sided printing is not necessary.
2. limit use of color copying/printing to reduce costs and resources.
3. Unless specific job demands or technical specifications of a printer require
otherwise, purchase and use 100% post-consumer recycled paper, preferably
with chlorine-free processing.
4. Purchase of papers containing less than 100% post-consumer content should be
limited to those that are Forest Stewardship Council (FSC) Certified.
5. Incorporate other practical measures to reduce print material such as e­
signatures, document imaging, and other paperless means of doing business.
C. Procurement
1.
Procurement policies shall incorporate sustainable purchasing guidelines to
secure economies of scale and promote sustainable product and service
offerings by vendors. (See, for example, the Environmental Protection Agency's
list of greener products that promote resource conservation, efficiency, safer
Administrative Practice 6-40, M-NCPPC Sustainability Standards
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alternatives, and, recycled content and recyclability, among other factors, in
addition to other, similar sources. See also Section LB., Conservation of
Electricity and Natural Gas.}
2. Purchases should be combined whenever reasonable to reduce deliveries to
minimum essential requirements, to save costs and energy where possible.
3. In cooperation with the Chief Information Officer, departments should create
and sustain an efficient information technology (IT) infrastructure that supports
operational needs while increasing paperless options for reviewing and storing
information, and using environmentally preferable and energy efficient
equipment including computers, printers, copiers, document imaging systems,
servers, etc.}.
III.
Recycling and Solid Waste Management: Implement projects and programs to recycle,
reuse, and reduce solid wastes used by M-NCPPC employees and patrons to meet or
exceed the regulatory mandates established by government regulations. Recycling and
disposal of materials shall comply with relevant federal/State safety regulations.
A. Implement recycling and reuse programs to achieve an overall rate of 90% of
recyclable materials mandated by state or local law (including mixed paper,
commingled materials, yard trim materials, Christmas trees, and scrap metal).
B. Implement recycling and reuse programs to include other material to include but
not be limited to oils, batteries, asphalt, tires, furniture, computers,
electronics, construction debris, etc.
c.
Implement programs to recycle and reuse plant, tree, and related vegetation
materials to include composting within the natural resources of the agency.
D. Develop community-based information programs to encourage, demonstrate, and
educate patrons on best practices to recycle, reuse, and reduce solid waste at
M-NCPPC facilities/programs.
IV.
Sustainable Infrastructure and Natural Areas: The M-NCPPC will utilize the national
and State standards for green practices in the design of facilities and in the management
of natural resources. Natural areas will be managed to maintain healthy ecosystems
and maximize biodiversity.
A. Sustainable Building - Whenever feasible:
1.
All new construction of M-NCPPC buildings shall be at least Leadership
in Energy and Environmental Design (LEED) Silver eligible or equivalent
standard.
2.
3.
Major renovation of M-NCPPC buildings shall meet at least LEED Silver
eligibility or equivalent standard.
Capital improvement plans shall include implementation of LEED or
equivalent standards in construction and renovation.
Administrative Practice 6-40, M-NCPPC Sustainability Standards
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4.
When planning new office sites, consideration should be given to
locations that offer access to public transportation resources such as
metro rail, trains, buses, and carpools.
B.
Sustainable Site Work - Where appropriate:
1.
Capital improvement plans shall include implementation of the
Sustainable Sites Initiative (SITES) or equivalent standards (such as
2.
3.
4.
LEED) in construction and renovation.
Plant native trees and shrubs around agency-owned buildings to provide
wind and summer sun shelter.
Utilize appropriate site layout, landscaping, and material choice to
reduce heat island effect and summer cooling costs.
Use best practices including, but not limited to, current environmental
site design standards to avoid, trap, and control erosion or surface
runoff of detergents, fertilizers, pesticides, and soil into storm drains
and surface waters.
C.
Natural Resources Management:
1.
Develop and implement a Natural Resources Management Plan for all
parklands acquired for conservation purposes by 2012. This Plan
provides general guidance to park management staff for the
management of natural areas in parks.
2.
Maintain, and expand as appropriate, the existing program for the
inventory, assessment, and control of non-native and invasive (NNI)
plants.
3.
4.
5.
Maintain, and expand as appropriate, the existing program for the
control of nuisance wildlife (e.g. White-tailed deer, Canada geese, etc.)
Utilize integrated pest management practices, where effective.
Maintain, and expand, as required by State regulations, the storm sewer
system, and the monitoring of water bodies and restoration of
watersheds within the park system.
D.
Community Planning and Development:
Where possible and practical, Community Planning and Development shall:
1.
2.
3.
Plan and locate new development according to Smart Growth principles
and in conjunction with Maryland Sustainability initiatives.
Locate recreation facilities to afford access via public transit and trails
networks.
Co-locate community recreation centers and major recreation facilities
with other public facilities.
V.
Health
&
and Wellness: Promote safety, health, and wellness through our workplace,
programs, and services.
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A.
Support healthy communities by integrating sustainability concepts and green
practices with relevant program offerings, to further enhance patron and
employee well-being.
B.
Raise awareness of workplace health, safety, and wellness issues through
comprehensive training and education programs targeting illness and injury
prevention.
C.
Mitigate workplace hazards through timely identification, investigation, and
remedial action. Whenever reasonable, complete collaborative reviews of
accidents and design new programs to encourage greater understanding of risks
and actions to implementation.
VI.
Employee Education
&
Training on Sustainability Goals
A.
B.
C.
Sustainability efforts will be fostered through agency-wide promotion and
education of environmental awareness and conservation.
Employees should be encouraged to seek sustainability credentials appropriate to
their work program.
Supervisors are responsible for reviewing work program requirements as they
pertain to implementation of sustainability efforts. Applicable sustainability goals
are to be incorporated into employee performance expectations.
RESPONSIBILITIES
The following responsibilities are assigned for the overall administration of the agency's
sustainability policy. Responsibilities may be delegated as appropriate.
Department Directors shall:
• Ensure compliance with this policy.
• Develop a departmental bi-annual Sustainability Plan that shall be presented to the
Executive Committee by September 2013 to outline initiatives for the upcoming
two-year period. The Sustainability Plan shall be reviewed and presented every two
years.
• Following the first year of implementation of the Plan, Department Directors shall
report of the status of achieving sustainability goals and objectives outlined in this
Practice and in the departmental Sustainability Plan.
• Designate one or more employees to act as the departmental Sustainability
Coordinator(s) and serve as the representative(s) to the agency-wide Sustainability
Committee.
Departmental Sustainability Coordinators shall:
• Serve as the departmental liaison to the Sustainability Committee and as the point
of contact and clearinghouse for all sustainability-related issues for the M-NCPPC.
• Assist the Department Director in preparing the departmental Sustainability Plan
that meets, at a minimum, the sustainability goals and objectives set forth in this
Practice.
• Communicate goals outlined in the departmental Sustainability Plan to all
operations/facilities and provide support for implementation of the Plan.
Administrative Practice 6-40, M-NCPPC Sustainability Standards
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10
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• Collect data and perform analyses to monitor and assess ongoing progress on
meeting standards and complying with guidelines.
Sustainability Committee shall:
• Share ideas for implementation of sustainability goals throughout the agency and on
a departmental level.
• Promote sustainability awareness within M-NCPPC and the region.
• Recommend to Department Directors, and develop/implement approved
communication tools to educate the workforce and the community on sustainability
goals, initiatives, and progress.
• Recommend to Department Directors, new or amended initiatives to comply with
the goals outlined in this Practice.
• Prepare a Sustainability Report to the Commission that describes the initiatives that
have been implemented throughout the agency.
• Strengthen information exchange with intergovernmental relationships in the area
of sustainability (e.g., Council of Governments, County/State agencies, local
municipalities) and, where relevant, explore opportunities to promote cooperative
partnerships and complementary cost-savings with potential implementation of
various measures with or across organizational boundaries.
Administrative Practice 6-40, M-NCPPC Sustainability Standards
Page 11 of 11
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/fr1..
(!t!
56/"
Li­
ROCKVILLE, MARYLAND
P1?
MEMORANDUM
April IS, 2014
TO:
Craig Rice, President, County Council
Jennifer A. Hughes, Director, Office of
Joseph F. Beach, Director, Department of FinantJ '
u
FROM:
SUBJECT:
Manag~dgejJtt
.
(J­
FEIS for Council Bill 8·14, Buildings- Green Buildings Clean Renewable'Tech
Please find attached the fiscal and economic impact statements for the above­
referenced legislation.
JAH:fz
00:
Bonnie
Kirkland, Assistant ChiefAdnlinistrative Officcr
Lisa Austin, Offices ofthc County Executive
Joy Nurmi, Special Assistant to the County Executive
Patrick Lacefield, Director, Public Information Office
Joseph F. Beach, Director, Department of Finance
Michael Coveyou, Department of Finance
David Platt, Department of Finance
Robert Hagedoorn, Department of Finance
David
Dise,
Director, Department of General Services
. Erika Lopez-Finn, Office of Management and Budget
Alex Espinosa. Office of Management and Budget
Felicia Zhang. Office of Management and Budget
Naeem Mia. Office of Management and Budget
V"I
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Fiscal Impact Statement
Council Bill 8-14, Buildings -
County Buildings­
Clean Energy Renewable Technology
1. Legislative Summary.
This fiscal impact statement addresses the amendments to the originally introduced
legislation. The amended legislation requires the County Executive to' establish a Clean
Energy Plan through Method I regulation.
The
plan must have certain elements,
including a clean energy portfolio target for total clean energy to
be
installed on County
facilities.
The amended legislatiori allows the County
to
use alternative financjng to meet the
specified target for renewable energy, including power purchase agreements (pPAs).
Under a PPA the County hosts a facility and purchases the power to avoid capital costs.
PP
As
serve as the focus of this analysis as they are the least costly in terms ofcapital and
maintenance investments. This fiscal impact statement, therefore, represents the
minimum estimated additional cost
to
the County of implementing
this
bill.
PPAs have not been extensively used for new construction. In addition, PPAs
are
currently economically viable for investors due
to
federal
tax
credits which are scheduled
to
expire at the end of2016. Once the tax credits expire, it is possible the cost of
installing
the
PP
As
will not
be
economically viable.
2.
An
estimate of changes in County revenues and expenditures regardless of whether the
revenues or expenditures are assumed in the recommended or approved budget. Includes
source of information, assumptions,
and
methodologies used.
The legislation does not affect County revenues.
The amended legislation allows for a portfolio approach in which the Department of
General Services (DGS) can utilize existing policies and programs to implement the
legislation.
DGS estimates two additional positions are needed to implement the bill and the required
Clean Energy Plan. The annual cost estimate of $200,654 assumes two grade 25 Program
Manager (II) positions each at mid-point and 25% for benefits. Energy cost savings are
estimated below.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
The analysis assumes 1.29 megawatts ofsolar energy used to estimate the costs for
facilities. DGS estimates $30,000 of energy savings for the first year of operation, with
savings declining over time due to the depreciation in solar photovoltaic system's output.
This
$30,000
in savings represents the difference between current energy costs and the
costs that PPAs can offset.
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Expenditures:
Total
I FY15
FY16
FY17
FY18
FY19
I
FY20
:
[ $200,654 $200,654 $200,654 $200,654 $200,654
I
$200,654 $1,203,924 :
Energy Cost Savings:
I
FY15
i
FY17
FY18
$30,060
I
$28,500 $27,075 $25,721
i
FY16
Total
FY20
FY19
$24,435 $23,213 $158,944
Net cost:
FY15
FY16
$170,654 $172.154
Total
FY20
FY17
FY18
FY19
I
$173,579 $174,933 $176,219 $177,441 $1,044,980
I
DOS energy cost savings estimate assumes the following:
• The PPA rate is a $0.02IkWh savings compared
to
the cost of standard electricity.
• Both the cost of the PPA-supplied electricity and grid supply electricity is 2% per
kWh.
• The system efficiency declines 0.5% per year due to degradation of the panels.
• The expiration ofthe federal clean energy
tax
credit, scheduled for calendar year
2016. may increase the costs of PPAs since costs will rise for power generation.
4. An actuarial analysis through the entire amortization period for each bill that would affect
retiree pension or group insurance costs.
This legislation does not affect retiree pension or group insurance costs.
5. Later actions that may affect future revenue and expenditures ifthe bill authorizes future
spending.
The legislation does not authorize future spending.
6.
An
estimate of the staff time needed to implement the bill.
As amended, the legislation would result in the need for two FTEs (grade 25 Program
Manager II positions).
7. An explanation of how the addition of new staff responsibilities would affect other duties.
For the amended legislation, staff'would oversee contractors
to
identify sites to
implement power purchase agreements. coordinate the construction process, and verify
that the final installation conforms to County requirements. Each program manager will
be responsible for overseeing the construction ofapproximately 10 to
IS
solar
photovoltaic systems annually. for approximately five years. Other duties would
be
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significantly impacted without two additional FrEs to implement this bill and the
required Clean Energy Plan.
8.
An
estimate of costs when an additional appropriation is needed.
An
additional appropriation ofS170,654 would be required to implement this bill.
9. A description of any variable that could affect revenue and cost estimates.
The fiscal impact could be affected by the following variables.
• Cost ofsolar equipment, labor. and other costs;
• Cost of electricity under County negotiated contmcts;
• Availability and accessibility of federal and
state
clean energy incentives and
grants; and
• Commodity market value of renewable energy certificates and credits.
10. Ranges of revenue or expenditures that are uncertain or difficult to project.
Not applicable.
11. If a bill is likely to have no fiscal impact, why that is the case.
Not applicable.
12. Other fiscal impacts or comments.
There is a concern
that
the use ofPPAs in certain circumstances could result in ineligibJe
private use of
tax
exempt financed facility, since a private entity will benefit from a public
use. To resolve this concern, bond counsel must review each PPA individually to ensure that
the
PPA is structured to prevent ineligible private use from occurring. If bonds cannot
be
used as the financing mechanism, other funding sources for projects would have to be
utilized.
13. The following contributed to and concurred with this analysis:
Eric Coffinan, Department of General Services
Erika Lopez-Finn, Office of Management and Budget
Date
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Economic Impact Statement
Bill 8-14
t
Buildings - County Buildings - Clean Energy Renewable Technology
Background:
This legislation would require the use of certain clean energy renewable technology in
the construction or extensive modification ofcertain County buildings, and require the
Director of the Department of General Services (DGS) to conduct a clean renewable
energy technology project feasibility assessment on certain County buildings.
1. The sources of information, assumptions, and methodologies used.
According to the DGS, investment in certain clean energy renewable technology is
based on a public-private partnership between Montgomery County Government
(MCG) and companies that provide solar photovoltaic systems. The level of business
income and employment are based on the number ofsystems installed.
2. A description of any variable that could affect the economic impact estimates.
As
presented in paragraph #1, the variable that could affect the economic impact
estimates are the number of systems that conform to County requirements. The
number ofsystems installed
will
affect the amount of business income and potentially
additional employment.
3. The Bill's positive or negative effect,
if
any on employment, spending, saving,
investment, incomes, and property values
in
the County.
Because this bill requires MCG to install clean energy renewable technology, the Bill
will have an economic impact on those companies located in the County and those
companies will experience
an
increase
in
business income and potentially expand
their employment base. However, without specificity of data. it
is
uncertain at
this
time, what the impact ofthis Bill would
be
on the change in the amount of business
income and employment.
4.
If
a Bill is likely to have no economic impact, why
is
that the case?
The Bill could have an economic impact on business income and employment.
S.
The following contributed to or concurred with this analysis:
David Platt and Rob Hagedoom, Department of Finance
Eric Coffin an, Department of General Services
if--
I
~-'-Ir
Date
Page lofl