Green Communities Presentation to Board of Selectmen 11-23-10

1. Becoming a Green Community
Discussion with
Board of Selectmen
Michael Greis
Green Needham Collaborative
23 November 2010

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3. Agenda
• Benefits of becoming a Green Community
• Green Community Requirements
• Where we stand
• Meeting the remaining requirements

4. Why?
• It’s the right thing to do
• It’s the smart thing to do
• It saves money
• We’re already doing much of it
• What we’re not doing, we’ll have to do

5. Benefits of being a
Green Community
• Climate Change, the Environment, Health
– Reduction in greenhouse gas emissions
– Cleaner, greener environment
– Reduced health care costs and decreased mortality
• Comfort and quality of life
– More comfortable homes, offices and schools
• Long-term Sustainability
– Minimize and control volatile energy costs
• Economic Development
– Lower cost of owning and operating facilities makes Needham more
attractive to businesses
– Green / LEED / Energy Efficient building is now the commercial baseline
– Homes are less expensive to own and more attractive to buyers
– Prospective residents want to make a smart choice of community to live
in – a sustainable, energy-efficient, green community reinforces their
choice of Needham

6. Benefits of being a
Green Community
• Saving energy, saving money
– Municipal energy reductions save taxpayer dollars and promote
confidence in municipal government
– Residents save money and reduce life cycle costs of owning
homes
– Businesses save money and reduce facility costs
• Savings benefit the local economy
– Massachusetts has no local energy production
– The dollars spent on energy leave the community and the region
• Oil used by Needham residents represents a transfer of wealth to
OPEC of $14.6 million each year
– Money not spent on energy by the municipality, residents and
businesses can be spent to benefit the local economy
• 10% of the FY 2011 energy budget = 4 teachers + 2 firefighters

7. Benefits of being a
Green Community
• Funding – Green Community Grants
– Funding from RGGI Auctions ($8-9 million yearly)
– Not subject to budget process, legislative
appropriation or 9C cuts
– Peer Towns received $150,000 – 200,000
– Will become more competitive as additional
communities qualify
• Funding – preference for other grant programs
– October 2010 Electric Vehicle Charging Stations

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

9. Benefits of being a
Green Community
• Creates a social norm and promotes a
community identity that:
– Builds buy-in for Selectmen and Town Manager goals
on sustainability
– Encourages further actions by citizens, businesses
and Town employees
– Enhances Needham’s image as a smart place to live
and do business

10. Green Community Requirements
• As-of-right Siting
– for renewable energy R&D, Manufacturing or Generation in
designated areas
• Expedited Permitting
– within one year via local permitting or MGL Chapter 43D
• Municipal Energy Use Baseline & Reduction Plan
– target 20% from baseline within 5 years
• Fuel-efficient Vehicles
– purchase subject to availability
• Minimize Life-cycle Costs
– adopt Stretch Energy Code (780 CMR 120 AA)

11. Green Community Requirements
- where we are
• As-of-right Siting
– Planning Board and Planning Director prepared to proceed with
overlay for RTS
– Location for prospective wind turbine and solar array
• Expedited Permitting
– Planning Director & Board feel our process enables us to meet
this requirement
• Municipal Energy Use Baseline and Reduction Plan
– Energy baseline complete and monitoring in place
– Town Manager ‘s 5% Energy Challenge 2009-10
• Fuel-efficient Vehicles
– Already seek efficient vehicles and have purchased hybrids
• Minimize Life-cycle Costs – adopt Stretch Energy Code
– Needs Town Manager & Selectmen support, Town Meeting
approval

12. Stretch Code Communities
- 35 designated Green Communities in May, 2010
- Many of the rest will be applying this month
Many of our peer communities are already on this list…
-Newton
-Natick
-Lexington
-Brookline
-Concord
-Sudbury
-Arlington
-Hopkinton
-Dedham

13. Massachusetts Energy Codes
• Meeting energy codes is not a new requirement
– IECC 2006, since 2008
• A new code is in effect as of July 1, 2010
– IECC 2009 - 10% more energy efficient than IECC 2006
• Stretch Code
– 20% more energy efficient than current MA code (IECC 2009)
• Green Communities Act requires adoption of new IECC
energy codes
• Stretch Code will become the base code
– IECC 2012 will be adopted in 2013

14. Stretch Code Coverage
• Residential
– New construction and additions
– Renovations
• Commercial
– New construction and additions > 5,000 sf
– Renovations exempt
– Specialized facilities (supermarkets, labs, warehouses)
• < 40,000 sf – exempt
• > 40,000 sf – covered

15. What’s different about the stretch
Energy Code?
• Reduces the cost of owning and using buildings
• Empowers the property owners to achieve energy
savings by making decisions and trade-offs that meet
their needs
• Provides quality assurance that owners are getting what
they pay for
It is results-oriented - focused on
performance, not prescriptive requirements

16. Performance code
versus Prescriptive code
Prescriptive codes don’t
guarantee good results
For example, small air gaps
created by faulty installation
can reduce the R-value of
insulation by 50% or more
Performance testing
ensures that
homeowners get the
results they are
paying for

17. Advantages of Performance-based code
- Property owner
- Makes the decisions
- Can make design trade-offs
- Quality assurance of the
work and the results
-Code official
- Compliance & inspections
essentially same as base code
- Retains authority
- 3rd
party professional rating
reduces disputes

18. Bottom line:
Reducing life-cycle costs
Building to the stretch code provides significant
bottom-line financial benefits to the property
owner – the building costs less to own and use
Residential:
- Small or even no cost premium
- 30% reduction in energy costs
- Net cash savings – up to several thousand dollars per year
Commercial:
- Average 2% cost premium yields immediate 30% savings in energy &
water
- Rates of return of >30% common
- Often cash flow positive from day 1

19. Path to Adoption
• Selectmen and Town Manager commit to becoming a
Massachusetts Green Community
– Adopt energy reduction plan
– Commit to buying energy efficient vehicles
– Adopt Stretch Energy Code (subject to TM vote)
• Planning Board prepares and approves:
– As-of-right zoning
– Commitment to expedited permitting
• Annual Town Meeting - May, 2011
– Vote to adopt zoning by-law changes
– Vote to adopt Stretch Energy Code
• Town Manager submits Green Communities
Designation form to DoER

20. Green Needham Collaborative:
– www.GreenNeedham.org
• Green Needham Collaborative Blog
– www.GreenNeedham.org/blog
• 10% Energy Challenge
– challenge.GreenNeedham.org

21. End of presentation
Linked slides follow

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

24. Cash flow for 3,500 sq home
(including all rebates and incentives)
-Net cost of improvements:
-$7,314
-Annual cash flow to owner
-$2,338
Without rebates & incentives:
- Net cost of improvements:
- $10,614
- Annual cash flow to owner
- $1,102
Cash Flow scenario prepared by Mark Sandeen, Lexington GWAC

25. Slides from DoER Stretch Code 201 Webinar

28. Slide from EPA Presentation at Electric Restructuring Roundtable 10/29/10
Benefits Costs