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.02 update on Environmental GrantsCITY OF CUPERTINO 10300 Torre Avenue, Cupertino, California 95014, (408) 777-3308 To: Planning Commission From: Gary Chao, City Planner GG~ Date: October 13, 2009 Subject: Update on the Environmental Grants and the Green Building Policy In Apri12009, the City Council directed the P1aruling Commission to explore mandatory and other incentivized techniques for a Green Building Program as part of its 2009/2010 work program. On August 4, 2009, the Council also authorized the Planning Commission's work program which also included the Land Use Sustainability Plan. In August 2009, the Planning Commission received updates from staff regarding the various grant opportunities and the Phase II Green Building Policy recommendation from the Santa Clara County Cities Association adopted in June 2009 (enclosed). At the time, the Planning Commission 11e1d off detailed discussions on the Phase II recommendations pending t11e results of grant opportunities that the City applied for that could help fund the Environmental Sustainability Task Force, Land Use Sustainability Plan and the Green Building Program. These grant opportunities include the Climate Showcase Communities Grant Program (Environmental Protection Agency -EPA - $500,000) and the Community Grant Program (Bay Area Air Quality Management District -BAAQMD - $100,000). In both cases, the City was not selected as an award recipient. Over 450 cities applied for the EPA's Climate Showcase Communities Grant Program (there was about a 4% success rate). Tl1e BAAQMD only awarded the Community Grant Program to non- profit organizations with community outreach and public education projects. Staff is exploring options for the Environmental Sustainability Task Force and the Land Use Sustainability Plan. However, staff believes that the Green Building Program is a more defined and discrete project that could be moved ahead of the longer term projects mentioned above. Staff therefore recommends that the P1aruling Commission discuss and provide direction on the Green Building Program with respect to the following: 1) Scope/Objectives 2) Process 3) Public Outreach 4) Schedule Staff will review funding requirements based on the Planning Commission recommendations. Next steps will include an update to the City Council with options for moving forward with the three projects and a request for additional funding if necessary. Enclosed: Green Building Collaborative, Santa Clara County Cities Association, Phase II Green Building Policy Recommendations 2-1 Green Building Collaborative Santa Clara County Cities Association Phase II Recommendations Green Building Collaborative Members: Lisa Geifer Cupertino Planning Commission Kristin Heinen Palo Alto Planner Shiloh Ballard Silicon Valley Leadership Group Don Bray rv Yoriko Kishimoto ~ Ann Waltonsmith N Tim Haley Reena Matthew Jennifer Seguin Linda LeZotte Jamie McLeod Joanne Benjamin Sharon Refvem Ragan Henninger Rebecca Fotu Steve Attinger Ryan Kuchenig David Kaneda Ronit Bryant Jill Boone Val Alexeef Erin Cooke Puja Vohra Karen Morvay Silicon Valley Leadership Group Palo Alto Mayor Saratoga Vice Mayor (former) Campbell Community Development San Jose Green Building Program San Jose Green Building Program Former San Jose Councilmember Santa Clara City Council Santa Clara County Cities Association US Green Building Council, Northern California Office of Councilmember Sam Liccardo City of Morgan Hill City of Mountain View City of Sunnyvale IDeAs & Cupertino Planning Commission City of Mountain View County of Santa Clara Build It Green City of Cupertino Davis Langdon Santa Clara County Water District S\_v~v CA Why we are here! Review status of Phase II Green Building policy recommendations. Seek feedback and conceptual approval of direction going forward. • Background on the Green Building Collaborative - Green Building tops list in June 2007 SCCAA meeting, cities want leveraged effort - GBC formed to: • Jump-start the process N Identify near-term `common denominator' recommendations w Work towards next phase (Phase II) - Council members & city staff from interested jurisdictions, SVLG, USGBC met monthly - Phase I Near Term Recommendations approved by SCCCA Board in November • Brief review of Near-term Recommendations - Easy, baby steps approach - Success! Recommendations adopted, in some form, by all cities & County • Overview of Phase II Recommendations - Feedback, questions and discussion 2 Context for Green Building Opportunity • Building energy usage responsible for 48% of US GHG emissions • 30% of material usage and waste stream • Green Building has positive ROI • Pull through for Silicon Valley clean-tech industry ~. ~ a~:~~~. ~;1- ~ ~~! ' '..1-:t w ~ ~ x i++ '~i ~ ~ ,;, t,~; ~. k '~:~~ ~ t„ . [~~~ :;~ " n, c~ &., N 1 Green Building Definition • "Whole-Systems" approach for designing and constructing buildings Adobe Systems Headquarters, San Jose Industry Adoption • `Competitive Advantage' of~green buildings • Significant support from local developers and design/construction industry $1.4M in efficiency investments $1.2M In annual savings "Platinum" Rating by USGBC • Many local examples Sources: US Ener Information Administration USGBC Architecture 2032 9Y Established Green Building Standards N I LEED Rating System U.S. Green Building Council '. , . ~• . z, .. lFAOEASHIP IN ENERGY A ENYIRpNMfNTA~ pESIGN '' '"~ ~, } • Points define four certification levels • Focused on commercial new & retrofit • 9000+ rated projects since 2000 Green Point Rated System Build It Green ~~ ,,r. ,~~~ r,. , ,` .: ~= :. ,,,,,... ~.: -; :~a '~. .~~~~ ill ~~ ~~~ \~~, • ~. ~'~ ` ~' f+' A bc~if~~r c.~i~~iroi7n~~~n1 f~r7n~ th~~ m~,~clr: ~.;~i1. • 50+ points define degree of `Green' • Focused on single/multi family residential • Goal of 10,000 units rated by end of 2008 :Many exist, yet two complementary standards have emerged as leaders: - Widely recognized and consensus-based - Consistent and quantifiable rating criteria, `menu' of options/choices - Independent 3~d-party verification ensures standard of perFormance 4 a N I What are the benefits and costs of Green Building? Representafiive benefits: 8-9% decrease in operating costs 7.5% increase in building values 3.5% increase in occupancy 3.0% increase in rental income 6.6% improvement in ROI ~ (.'mi/G9F i(f All ilnlldln~. S ^ Ae~f ~i •~ + +•i\T tFe,i 51 t\tl151 t•~r q( tNe ~~.~''1 ~aa'., h _ ~4 ~i ::."==~-:sue :.> r ,~* -xJ A :xr iii -•-a ~.: ( i. +•a.A 4 AN,k. A ~~~~ V~u_C~ i M +~..~ . ~~.. .1 .re' 4+~~.t sib 7.~t: rr,,p F p~-~rY:._~ .~.. ..~;~:~ . ,.,,., .,.~xr=~,~.,..~~,...-.~~~+ ., ""~~ ~~ ,~:~~ A~ 6~il~.. .: .a .N ._.... ..r ..:. .'nom USGBC LEED for Commercial Buildings Davis Langdon Survey of Cost for 45 LEED, 93 Non-LEED Buildings • In general, future financial benefits of a green building offset incremental upfront costs, and yield a positive return on investment • Incremental upfront green building costs heavily dependent on design approach 5~ Compliance handled by owner, design/build team, and 3rd-party certifier 5 GBC Program and Next Steps N I Phase I: Julv -Dec 2007 • Form Collaborative • Information Exchange • Initial GBC Policy Framework and Recommendations • Support Approval by SCCCA Board • Feedback ~ r 1 i. ~ n E i t ~. :~ ~{ Phase II: February 2008-April 2008 • Support Policy Adoption by Cities • Additional Research on Leading Practices • Evaluation of Key Policy Questions • Develop Phase 2 Recommendations - Any questions about general direction? - Is the Board okay with this general approach? - What specific questions/concerns does the Board wish to have answered/addressed? 'Your ideas on important considerations? 10 Santa Clara County Cities Association Green Building Collaborative Phase II Policy Recommendations Type of Project Green Standard~~* Residential, New Construction Single-family & GPR Rated~* or LEED Certified Multi-family < 9 homes Multi-family =/> 9 homes GPR Rated or LEED Silver Residential, Remodels Single-family <$100,000 permit BIG's Elements checklist or LEED valuation or, <500 square foot Checklist addition or FAR increase <50%. This category also includes maintenance items -that require a permit Single-family w/$100,000-200,000 BIG's Elements 25-49 or LEED permit valuation, or 500-1,000 Certified square foot addition Single-family w/$200,000+ pernut GPR Rated or LEED Certified valuation, or 1,000+ square foot addition or FAR increase of SO% Small Multi-family projects (TBD) Applicable GPR Checklist or applicable LEED checklist Large Multi-family projects (TBD) Applicable GPR 50 or applicable LEED level of certified 2-1 e of Pro'ect __~ _ _ __ ___._ Gre Nonresidential, New Construction Small, <5,000 s ware feet LEED Checklist Mid-size, 5,000-25,000 square feet LEED Certified Large, >25,000 square feet LEED Silver Nonresidential, Remodels/Tenant Im rovements Small projects (TBD) LEED Checklist Large projects (TBD) LEED Certified X'~It is understood that GPR Rated currently requires a minimum level of 50 points. It is also understood that Build It Green will continue to adjust its checklist to reflect code changes and that 50 points today may be equivalent to something different in the future. However, the "Rated" term equates to BIG's nunimum green standard, which again, is currently 50 points. '`*~= The latest applicable version of the U.S Green Building Council's LEED®Rating System -New Construction (which includes major remodels}; Commercial Interiors; Existing Buildings; Core & Shell; etc. 2-13