Green Building Incentive Task Force — Portland, ME
Date: 2011-04-28

MEMORANDUM
To: Green Building Incentive Task Force

From: Ian Houseal, Sustainability Coordinator

Date: April 28, 2010

Re: Incentive Options and Incentives Available


At the March Green Building Incentive Task Force further information was requested by the Task Force
including a summary of all possible options for incentivizing green building by the City, a summary of
incentives already offered by other entities, as well as a summary of permit revenue collected by the
City and a copy of the building permit fee schedule.

The requested information is included here.

Summary of Incentive (monetary and non-monetary) Options:

Incentive Description
Rebate Payment after completion based on meeting certain criteria with funding to
 come from a payment source unknown.
Fee reduction Initial payment reduction based on meeting certain criteria from a payment
 source unknown.
Self-funded A self funded mechanism including an initial payment for non-green building
fee/rebate and rebate after completion for meeting certain criteria.
Grant or loans Payment for meeting certain standards using grant funds or loan funds from
 payment source unknown.
TIF district Tax offset for a period of time based on certain criteria used to fund the project
 and other associated costs.
Expedited plan Non-monetary incentive for plan review.
review
Density bonus Non-monetary incentive density bonus applicable to residential applications.

Technical or Non-monetary incentive offering promotion of a project or assistance in
marketing assistance navigating incentive programs.
Available Incentives

Building Type Commercial Residential
 New Construction  Renovation New Construction Renovation
Electrical Equipment Rebates Equipment Rebates N/A Equipment
 Rebates
Gas Equipment Rebates Equipment/Envelope Equipment Rebates Equipment
 Rebates Rebates
Propane N/A N/A N/A Equipment
 Rebates
Solar/Wind Rebate Rebate N/A Rebate
Income Tax Federal Tax Credit Federal Tax Credit N/A Federal Tax Credit
Credit
Building High Performance Loan ($35,000 at 1%) N/A - Loan/PACE
Performance Building Program ($15,000)
 (incentive: $1/SF) - Housing Loans
 (income specific)


Efficiency Maine High Performance Buildings Program

Efficiency Maine reported that the incremental cost for high performing buildings is 1-3%. The High
Performance Building Program is a very new program (one year) and is still being reviewed. The
incentive amount is still fluctuating and is contingent upon legislative funding. Funding is currently
provided through the electrical system benefit charge. In the first year of this program there have been
three projects completed and seventeen are in review. The program offers a $1/sf incentive for new
commercial construction. The program is ideally suited to 10,000-70,000 sf. Prescriptive requirements
include:
 • Meet MUBEC
 • Continual Insulation Barrier
 • Requirements for foundations, skylights no >5% of roof area, windows no >40% wall area
 • R-value
 • Lighting power density
 • Mechanical equipment performance
 • Dedicated heating and cooling equipment
 • On-demand domestic hot water
 • Actual performance if available
Fee Schedule

Pursuant to Portland City Code Sec. 6-17 building permit fees are
based on the cost of work. The cost of work is submitted by the
applicant and reviewed by the Division for reasonableness. All
building permit applications shall be accompanied by the appropriate
fee as established below:

 (a) Construction work:
 (1) Cost of work fees:
 Up to $1,000.00 . . . . . .$30.00
 $1,000.00 or more . . . . .$30.00 + $10.00 per
 $1,000.00 above $1,000.00
 (2) Belated fees:
 Below $30.00 permit fee . .$50.00 additional
 Above $30.00 permit fee . .$100.00 additional

 (3) Amendments to application:

 Up to $1,000.00 . . . . . .$30.00
 $1,000.00 or more . . . . .$30.00 + $10.00 per
 $1,000.00 above $1,000.00


 (b) Fees for specific items (additional to cost of work fees
above):

 (1) Air conditioning and . . . .$30.00 + $10.00 per
 ventilation systems $1,000.00 cost

 (2) Change of use permit . . . .$30.00 + $10.00 per
 $1,000.00 cost

 (3) Demolitions:

 Structures . . . . . . . . .$30.00 + $10.00 per
 $1,000.00 cost

 (4) Heating systems-all types. .$30.00 + $10.00 per
 $1,000.00 cost

 (5) Oil and gas burner. . . . . $30.00 + $10.00 per
 replacement $1,000.00 cost

 (6) Stop work order removal . . $100.00

 (7) Certificate of Occupancy. . $75.00 for each
 Inspection

 (8) Home occupation . . . . . .$150.00 plus cost of work
 (9) Re-inspections . . . . . . $75.00 for each

(c) Fees in lieu of cost of work:

 (1) Signs . . . . . . . . . . $30.00 + $2.00/sq.ft.

 (2) Tanks: propane gas, gasoline and fuel oil:

 Under 300 gals . . . . . . . $30.00
 300 gallons or more . . . . $35.00
 Removal. . . . . . . . . . . $30.00

 (3) Tent use . . . . . . . . . . $30.00

 (4) Parking lots . . . . . . . . $100.00

 (5) Subdivision fee. . . . . . . $500.00 base fee plus
 $25.00 per lot or dwelling unit

 (6) Hoods, commercial cooking. . $30.00 + $10.00
 per $1,000.00 cost

 (7) Commercial cooking . . . . . $30.00 + $10.00
 Appliances per $1,000.00 cost

 (8) Fire alarm and sprinkler . . $30.00 + $10.00 per
 systems $1,000.00 cost

 (9) Moving building . . . . $30.00 + $10.00 per
 $1,000.00 cost

 (10) Metalbestos chimney . . . . $30.00 + $10.00 per
 $1,000.00 cost
 Building Permit Revenue


 FY 2001 FY 2002 FY 2003 FY 2004 FY 2006 FY 2005 FY 2007 FY 2008 FY 2009 FY 2010
 Building Permits
  Building Permits $ 537,138 $ 686,556 $ 580,333 $ 1,151,582 $ 1,227,489 $ 1,403,837 $ 1,532,360 $ 1,787,397 $ 838,699 $ 1,239,189
  Plumbing/Electrical $ 78,253 $ 78,806 $ 84,207 $ 102,731 $ 112,452 $ 109,982 $ 99,271 $ 108,777 $ 67,427 $ 83,911
  Other Fees $ 13,476 $ 22,816 $ 37,114 $ 27,052 $ 31,010 $ 34,812 $ 28,500 $ 21,585 $ 15,621 $ 22,132

 Total Building Permits $ 628,867 $ 788,178 $ 701,654 $ 1,281,365 $ 1,370,950 $ 1,548,630 $ 1,660,131 $ 1,917,759 $ 921,747 $ 1,345,232

Planning Charges $ 138,605 $ 189,643 $ 229,532 $ 355,674 $ 353,980 $ 344,108 $ 362,621 $ 239,800 $ 255,963 $ 226,814




 Building Permit Revenue
 $2,000,000

 $1,800,000

 $1,600,000

 $1,400,000

 $1,200,000

 $1,000,000 Building Permits
 Planning Charges
 $800,000

 $600,000

 $400,000

 $200,000

 $-
 FY 2001 FY 2002 FY 2003 FY 2004 FY 2006 FY 2005 FY 2007 FY 2008 FY 2009 FY 2010

MINUTES
 Green Building Incentive Task Force
 April 28, 2011
 City Hall, Room 209, 12:00 PM

Marshall, Getz, Shinberg, O’Neil, Pulaski in attendance. Belleau and Boxer arrived 10 minutes after the
start of the meeting.

1. Review and approve of GBITF minutes from March 24, 2011.

Getz approved, O’Neil seconded, unanimous.

2. Review of Meeting Material.

Houseal reviewed the first items of the meeting material: available options for incentivizing green
buildings.

3. Further Discussion on Development of Green Building Incentives.

Marshall asked that Greg Mitchell, Economic Development Director provide insight into of how TIFs
might be usable for incentivizing green buildings. He said he would like to hear from Mitchell at the next
meeting.

Belleau was most interested in getting off of oil. Belleau also stated that an intermediary step could be
a rating system and energy disclosure such as Energy Star Rating System or the DOES system.

Pulaski stated that New York requires buildings to report energy performance and has a requirement to
do energy audits.

Marshall stated that he would like to hear back from staff on the legality of requiring energy
performance disclosure.

Pulaski stated that out of interest, the new LEED rating system has a requirement for energy
performance disclosure.

Marshall asked if there was a way that the goal of getting of oil could be moved forward through natural
gas hook‐ups and incentivizing that.

Belleau stated again that the Task Force should first prioritize getting off oil and second insulating.

Getz mentioned that street opening moratoriums may be an issue.
There was continued discussion on build out of natural gas.

O’Neil mentioned that there were some things underway at the State level that the committee should
consider.

Marshall made the request to Jaegerman that the planning department develop a menu of options for
incentives available to applicants.

O’Neil stated that he felt it was important that policy should be neutral in the market, but on the other
hand, natural gas is “inciting” as an energy supply and maybe the Task Force should encourage it.

Marshall summarized the material requested for the next meeting to include Mitchell discussion of the
use of TIFs to incentivize green building, more information on energy disclosure (legality and New York’s
experience), natural gas availability in Portland and happenings at the State, and the use of CDBG funds
for natural gas expansion or incentive.

Marshall stated that he wanted to narrow down the realm of incentives to explore.

4. Confirm Date for Next Meeting: The next meeting is currently scheduled for May 26, 2011.

5. Adjourn