Green Building Incentive Task Force — Portland, ME
Date: 2011-06-23

DRAFT MEMORANDUM
To: Energy and Environmental Sustainability Committee

From: Green Building Incentive Task Force

Date: June 23, 2011

Re: Recommendation on Incentivizing Green Building in the City of Portland



In fulfillment of the charge put before the Green Building Incentive Task Force (GBITF) by the City
Council and the Energy and Environmental Sustainability Committee, the GBITF makes the following
recommendations to the City Council to incentivize and encourage green building in the City of Portland.

The Task Force has targeted a worthy goal of full conversion to natural gas by residential customers as
the top priority for the residential market. For the commercial market, the Task Force is recommending
a requirement to benchmark as well as the creation of a revolving loan fund to pay for the incremental
cost of energy performance in new construction and in existing buildings.

The Task Force has also attached the proposed changes to the existing Green Building Ordinance. The
Task Force was directed to review and make recommendations on amending the Ordinance.



I. Design a green building incentive program that meets the following criteria:

 1. Aid residences and businesses in switching fuel sources from fuel oil to natural gas.

Between 2011 and 2024, the gas public utility (Unitil) will be undertaking a gas main replacement
project. As this project is phased-in over this time period, Unitil will be laying new gas main-line and
streets will be opened to accommodate this upgrade. Coordinate between the City and Unitil in the
connection of businesses and residences in an opportunity to switch to a more cost-effective and cleaner
fuel source.

 • Engage in regular coordination meetings between the City and Unitil to plan for the
 connection of businesses and residences to switch to natural gas in areas where pipe
 replacement is to take place.
 • Undertake a targeted marketing and outreaching campaign in areas of the City to be
 serviced with natural gas to get residents not currently connected to connect. Notify
 businesses and residences of when pipe-replacement will take place. Consider mailings and
 possible door to door solicitation by the City.
 • Consider offering a revolving loan or other financial incentives if funds become available to
 businesses and residences not to exceed the cost for paying for burner conversions and flue
 relining after all other sources of funding from State and natural gas incentive sources has
 been exhausted.

 2. Require Mandatory Building Energy Benchmarking of commercial buildings with over 7,000 of
 natural gas or electrical metered square footage and voluntary reporting for other commercial
 and residential space.

There is a trend nationwide to require energy benchmarking in commercial buildings. Building research
indicates that measuring energy performance results in future energy savings. The Task Force believes
that requiring mandatory building energy benchmarking would not be particularly onerous for building
operators since this information is typically required in property sale transactions and this information is
typically tracked. Reporting in EPA Energy Star Portfolio Manager is commonplace and relatively easy.

 • Require benchmarking using EPA Energy Star Portfolio Manager
 • Require submitting the EPA Portfolio Manager tool score to the City of Portland annually
 and require that the score be made publically available on the City website.
 • Create a energy performance database for voluntary reporting.

 3. Create a revolving loan fund funded from TIF revenue for commercial energy improvements to
 pay for the incremental cost of energy improvement in existing and new construction.

It is possible for the City to create a Revolving Loan Fund funding stream from a Tax Increment Financing
(TIF) Districts. This loan fund could be used to pay for energy improvements in commercial projects
anywhere in the City.

 • Amend the City TIF policy to allow for the creation of a TIF district funded Revolving Loan
 Fund and fund an Energy Performance Revolving Loan Fund.
 • Users of the fund must demonstrate through an engineering study that the building
 improvements exceed ASHRAE 90.1 by 30% for new construction and 20% for existing
 buildings and 10% for historic buildings.
 • The funds may be used to pay for the incremental construction costs of reaching the higher
 standard.
 • Users of the fund must exhaust all State and utility energy incentive sources before using
 the Revolving Loan Fund.

 4. Amend the Consolidated Plan to include energy efficiency in the scoring criteria.
II: Amendments to the Existing Green Building Ordinance

The Task Force has reviewed the existing green building ordinance and makes the following
recommendations:
 • Amend the funding threshold for publically funded projects to $200,000 from $25,000.
 • Lower the threshold for City projects to 2,000 square feet from 5,000 and remove the
 requirement for compliance for projects over $250,000.
 • Allow any third-party certification system.
 • Remove the requirement that buildings meet the Architecture 2030 Challenge.
 • Require that buildings perform better than ASHRAE Standard 90.1 by 30% for new construction,
 20% for existing buildings, and 10% for historic buildings.
 • Require that waiver requests are sent to the Zoning Board of Appeals.
 ARTICLE VII. GREEN BUILDING CODE
-------
*Editor’s Note: Article VII (Green Building Code) was adopted in its entirety
by Council Order 187-08/09 and passed on 4-6-09)
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Sec. 6-165. Purpose.

The purpose of this article is to establish the energy performance
requirements of constructing and renovating municipal building and
publically funded projects with the goal of planning, designing,
constructing, and managing to maximize energy performance, minimize
adverse environmental impacts, provide healthy work places,
conserve natural resources, and promote sustainable development in
Portland. promote standards for construction that result in
buildings that are environmentally responsible, energy efficient,
provide healthy places to work consume less energy and create fewer
emissions.

Sec. 6-166. Definitions.
The following words phrases shall be defined as set forth below,
for use in this article.

Funded in whole or in part: Receipt of tax increment financing or
the sum of a grants by the City, HOME loans, Community Development
Block Grant loans or Neighborhood Stabilization Program loans is
greater than twenty-fivetwo hundred thousand dollars
($25200,000.00).

Renovation:
(a) At the time of the application, the total construction cost is
greater than or equal to the market value of the property as
determined by the city’s tax assessor; or
(b) A conversion from non-conditioned to conditioned space; or
(c) An addition of building gross square footage greater than or
equal to the gross square footage of the existing building; or
(d) A change of use.

Sec. 6-167. Standards for new buildings and renovation projects.
All new construction and renovation projects to be: (a) owned, or
occupied by the city of Portland that are of 52,000 square feet in
floor area or greater; or (b) funded in whole or in part by the
city of Portland that are of 10,000 square feet in floor area or
greater;and have a total construction cost of greater than
$250,000.00 and all new construction and renovation projects to be
funded in whole or in part by the city of Portland that are of
10,000 square feet in floor area or greater and have a total
construction cost of greater than $250,000 shall be certified to
the U.S. Green Building Council’s (“USGBC”) Leadership in Energy
and Environmental Design (“LEED”) Silver Standard, and shall
achieve the minimum LEED optimize energy performance points
necessary to meet the targets of the 2030 challenge as published by
Architecture 2030. shall demonstrate under any third-party
certification system (e.g. LEED and Green Globes) or energy model
certified by a licensed engineer a percentage improvement in the
proposed energy performance of the building compared to the
baseline performance rating per ASHRAE Standard 90.1. Such
percentage improvement shall be 30% for new construction, 20% for
existing buildings, and 10% for historic buildings.

Sec. 6-168. Submissions of LEED checklist.
The applicant shall provide upon Upon submission of an application
for a building permit for new construction or renovation projects
that are required to meet the standards set forth in section 6-167,
the applicant shall also submit a preliminary energy modelLEED
checklist, along with a statement of certification from a licensed
engineer that  the project meets  the standardsa narrative
description detailing how the LEED points will be achieved,
including the points necessary to meet the 2030 challenge.

Sec. 6-169. Certificate of Occupancy.
A copy of the final submission of LEED documentation to the USGBC
The applicant shall submit be submitted to the city’s department of
planning and urban development prior to the issuance of a
certificate of occupancy for new construction or renovation
projects that are required to meet the standards set forth in
section 6-167 a statement of final certification from a licensed
engineer indicating that the project meets the standard along with
any amendment to the energy model supplied at time of application.
. A temporary certificate of occupancy may be issued by the city if
necessary prior to the submission of final LEED documentation to
the USGBC.

Sec. 6-170. Waivers.
The standards set forth in section 6-167 requirement of LEED
certification may be waived in an emergency situation or under
documented circumstances showing that compliance with this
requirement would be cost prohibitive and/or create an unreasonable
burden on the construction project or city; have a negative impact
on an historic structure; or, if due to specific circumstances,
would defeat the intent of LEED certification. Any request for
waiver of LEED certification must be accompanied by specific
reasons for the waiver and approved by the Zoning Board of
Appealsdirector of planning and urban development. If a waiver is
granted, a reasonable effort must still be made to maximize the
number of LEED points attained by the projectbuilding performance
according to the standards set forth in section 6-167, 6-168 and 6-
169.

Sec. 6-171. Appeals.
Any applicant aggrieved by the decision of the director of planning
and urban development zoning board of appeals may appeal that
decision to the city council by filing an administrative appeal
within twenty one (21) days of the issuance of the decision. The
city council shall place the appeal on its next regularly scheduled
meeting. The appeal shall be de novo and public comment shall be
accepted. The decision of the city council shall be in writing,
final and non-appealable.

Sec. 6-172. Applicability.
This ordinance shall apply to new construction and renovation
projects to be owned, occupied, or funded in whole or in part by
the city of Portland for which site plan applications, building
permit applications (not associated with an approved site plan), or
funding assistance requests are submitted on or after the effective
date of this ordinance.

(Ord. No. 187-08/09, 4-6-09)

MINUTES
 Green Building Incentive Task Force
 June 23, 2011
 City Hall, Room 209, 12:00 PM

1. Review and approve of GBITF minutes from May 26, 2011.



Motion made by Getz, seconded by Shinberg. Approved 4‐0. Marshall, Getz, Shinberg, Belleau in
attendance. Staff in attendance: Ian Houseal, Mary Costigan.



2. Review of Draft Recommendations by the Task Force to the Energy and Environmental
 Sustainability Committee.



The Committee reviewed the draft recommendations.



There was discussion on the item I.1. The Task Force requested additional language to the effect of
providing information to property owners on incentives available and including property owners in the
description of the second bullet point.



There was discussion on item I.2. The Task Force discussed what the appropriate commercial square
footage might be to require energy performance benchmarking. The Task Force discussed whether
there should not be a requirement at all but rather a voluntary database. Costigan stated that a
database might not be technically feasible. Houseal stated that he assumed it would be, but the
recommendation would need to be contingent on the feasibility of creating a database. The Task Force
recommended only a voluntary database and no recommendation of mandatory reporting.



There was discussion on item I.3, but there were no changes as written.



There was discussion on item I.4, but not changes were recommended.



3. Review of Draft Changes to the existing Green Building Ordinance.
The Task Force reviewed the draft amendments to the existing Green Building Ordinance. The Task
Force discussed the minimum requirements of funding and moving the threshold to a higher level. No
changes were recommended to what was presented in the draft.



Striking the change of use requirement was discussed at length. No changes were recommended to
what was presented in the draft.



The adjustment was the square footage requirement for City buildings was discussed. The Task Force
approved the changes.



The Task Force reviewed the LEED requirement for City buildings. Houseal was asked to read the section
of the Sustainable Portland Plan that specified the LEED requirement for City buildings. The Sustainable
Portland Plan states that City buildings will be LEED Silver. The Task Force recommended changing the
draft to reflect City buildings being built to the LEED Silver standard.



There was discussion on meeting the ASHRAE 90.1 standard instead of the LEED standard for publically
funded projects. The Task Force recommended the draft changes.



There was discussion on the waiver process. Costigan stated that the Board of Appeals was not the
appropriate board for a primary waiver since their charge was appeals. The Task Force recommended
that the Energy and Environmental Sustainability Committee consider the waiver process.



4. Confirm Date for Next Meeting: The next meeting is currently scheduled for August 25, 2011.



The Task Force did not schedule a next meeting. It was assumed that the Task Force had completed
their charge and could conclude.



5. Adjourn