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VII.1. Sustainability Building Policy; Howard CITY OF HOPKINS Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Kurt Howard, Planner Date: December 19, 2023 Subject: Sustainable Building Policy _____________________________________________________________________ PURPOSE The purpose of this item is to discuss the topic of sustainable building policies, present research findings on best practices and existing policies from other Minnesota communities, and seek direction from the City Council on an approach towards potential policy development. INFORMATION What is a sustainable building policy? Sustainable building policies are tools used by local jurisdictions to increase the degree to which new development contributes to improvements in public health, environmental justice, and environmental and economic sustainability. This is accomplished by requiring, incentivizing, or encouraging development to occur in ways that reduce carbon emissions, reduce waste, protect natural areas, mitigate stormwater runoff, and contribute to other sustainability goals. Basis for a sustainable building policy in Hopkins A stated goal of the Cultivate Hopkins 2040 Comprehensive Plan is to encourage sustainable practices in locating, designing, constructing, and maintaining development in the city, with an associated strategy of exploring implementation of heightened development review through Green Building Codes and sustainable building regulations. Additionally, during the Partners in Energy planning process, one of the four Focus Areas identified by the Energy Action Team was sustainable development, with an associated strategy of developing a Hopkins sustainable building policy. Existing policies and recommended best practices To date, at least eight Minnesota cities have adopted some form of formal sustainable building policy, including St. Paul, St. Louis Park, Rochester, Edina, Maplewood, Duluth, Minneapolis, and Northfield. There is also a significant amount of guidance and resources available from the Center for Energy and Environment (CEE) to assist cities who may be considering sustainable building policies. One of the central recommendations of CEE’s guidance is the encouragement of some degree of standardization among policies across cities. It is suggested that standardization has many benefits, including helping the development and construction industry become Planning & Economic Development practiced at complying with policies that are familiar and reducing competition for development among cities. A degree of standardization is evident among six of the eight cities that have adopted sustainable building policies. Their general policy framework consists of two main components: 1. Leveraging existing third-party rating systems: several existing policies make use of the many existing third-party green building rating systems, such as LEED certification, Minnesota B3 Benchmarking, MN GreenStar Home certification, and Enterprise Green Communities green building program. These rating systems consist of sets of sustainability criteria and detailed pathways for meeting the criteria. They are generally broad and cover several aspects of sustainability, including water, energy, waste, and materials. The rating system component of these policies entails requiring developers to choose from a list of rating systems and their associated rating level that the development project must meet to comply with the policy. The table below shows the most common and recommended minimum rating systems and their associated levels by building type: 2. City-specific criteria: the other main component of the general policy framework utilized by several existing sustainable building policies is a city- specific list of sustainability standards that must be met in all cases. These city- specific criteria offer cities a high degree of customization to ensure the policy is delivering on a particular set of a city’s sustainability goals and priorities. However, these standards are also typically performance-based and give developers flexibility in how to meet the standards, which can drive innovation and cost efficiencies. It is recommended that cities prioritize criteria for adoption that balance progress towards city goals with the administrative obligations associated with implementing the policy and verifying compliance. For this reason, many existing policies have developed city-specific criteria that reference previously existing standards as show in the table below: While there is a fair amount of standardization among existing sustainable building policies across Minnesota, there are also precedents for alternatives to the general policy framework described above. For instance, the City of Duluth’s policy offers developers the option to either achieve certification under a third-party rating system or use a point scoring system developed by the City to earn a minimum number of points based on the size of the project in order to be considered compliant with the policy. Points can be earned in categories ranging from energy efficiency, alternative energy, passive solar, water, vegetation, urban agriculture, or transportation. The City of Maplewood’s policy bases its requirements for most buildings on the 2012 International Green Construction Code or the ICC 700-2008 National Green Building Standards for low density residential buildings. Applicability In addition to the general policy framework, another foundational component of a sustainable building policy is its applicability. Given the regional competition for development, cities often balance priorities of encouraging development while achieving goals that are specific to the community, including sustainability targets. For this reason, it is advised that a sustainable building policy’s applicability be based on a set of policy triggers that leverage a city’s unique leverage points. It’s worth noting that most existing sustainable building policies contain provisions for waiving the requirements, in whole or in part, by the Housing and Redevelopment Authority (HRA) or City Council after considering the advantages and disadvantages of a waiver, and upon demonstration by the developer of a compelling public purpose. Among existing sustainable building policies, policy triggers include: • Projects for which the City or HRA is to become the sole tenant • Projects of a specified size • Projects receiving any amount of financial assistance through the City or HRA • Projects receiving more than $200,000 in financial assistance through the City or HRA • Projects specifically receiving Tax Increment Financing (TIF) • Projects requesting Planned Unit Development approval Some of these policy triggers are similar to Hopkins’ recently adopted Inclusionary Zoning Policy, which applies affordability requirements to any new or existing residential project that meets one or more of the following criteria: 1. A market-rate residential rental project that adds or creates twenty (20) or more residential units and that receives: • Discretionary land use approvals including a comprehensive plan amendment, zoning code text or map amendment or approval pursuant to a planned unit development (PUD); or • Financial assistance from the City or Housing and Redevelopment Authority (HRA) 2. Any residential development for which the developer voluntarily chooses to provide affordable dwelling units pursuant to the Inclusionary Zoning Policy For a potential sustainable building policy, staff’s preliminary recommendation is to keep the policy triggers somewhat consistent to those of the Inclusionary Zoning Policy, but set a threshold for financial assistance that is above the maximum award amounts for existing financial assistance programs including the Façade Improvement Program ($25,000) and the Hopkins Climate Solutions Fund ($10,000). Questions for the Council • Do you support developing a sustainable building policy? • What are the priority sustainability impacts that a potential policy should target? • Do you generally support an approach to policy development that includes a combination of third-party rating systems and city-specific criteria? • How should the applicability and triggers of a potential policy be determined? FUTURE ACTION If the Council chooses to move forward with a sustainable building policy, staff will work with internal stakeholders and subject matter experts to develop a policy and return to the Council with a draft policy. Attachments: • Minnesota Municipal Sustainable Building Policies Guide Updated February, 2022 Originally published January, 2021 Prepared by Katie Jones, Marisa Bayer Center for Energy and Environment In collaboration with Hennepin County MINNESOTA MUNICIPAL SUSTAINABLE BUILDING POLICIES GUIDE Policy Framework and Implementation Recommendations 1 OVERVIEW Cities throughout Minnesota seek to improve public health, environmental justice, and environmental and economic sustainability. As cities set targets to reduce carbon emissions, reduce waste, protect natural areas, and mitigate stormwater runoff, many are turning to building-related strategies to help achieve these goals. Generally, cities have three main levers to create change: mandatory requirements, process incentives, and financial incentives. Because the State of Minnesota sets the building code, cities are unable to establish building requirements that are more strict than existing code; however, with financial levers and authority over land use, cities have tremendous potential to use sustainable building policies as a tool to make progress toward sustainability goals. To date, Minnesota cities have taken three approaches in the application of sustainable building policies, listed below in order of impact: 1. Mandatory approach (Recommended). This policy approach identifies default sustainability requirements for funding programs and land use variances above certain thresholds. These requirements are in addition to other program and land use requirements. 2. Scoring approach. Buildings are scored on a set of criteria and those with the highest scores qualify for city program funding and approval. 3. Suggestion approach. Developers are strongly encouraged to consider sustainability in construction through a sustainability questionnaire. Based on research of existing policies and interviews with Minnesota cities, we identified best practices and recommendations for creating a framework and implementing a mandatory sustainable building policy. The intent of this guide is to provide a resource for cities considering sustainable building policies and to encourage standardization across cities. Standardization has many benefits including improving efficiency and cost-effectiveness across the region, facilitating the adoption of sustainable building practices, and reducing competition among cities for development. Sustainable Building Policy Defined Sustainable building policies establish minimum sustainability criteria that go beyond existing state code for new construction or significantly renovated developments. Included criteria typically target areas for pollution reduction and resource conservation. Also known as green building policies. Existing Policies As of 2022, eight Minnesota cities have some type of formal sustainable building approach: Duluth, Edina, Maplewood, Minneapolis, Northfield, Rochester, St. Louis Park, and Saint Paul. The affected building types, triggers, and criteria vary by policy, although some standardization is taking shape. See the Appendix for detailed comparison of the policies. 2 POLICY FRAMEWORK GUIDE A policy framework addresses the fundamental questions of “what” and “who” — what does the policy cover, who does this apply to, who manages the policy, and what happens with non- compliance. Identify City Overlay and Applicable Rating Systems The first step is to understand the universe of existing third-party green building rating systems.1 Such rating systems provide processes for developers to achieve the city’s aims. Rating systems are often similar but not identical. For that reason, the city should note the strengths and weaknesses of the rating systems relative to one another and make a list of priority impacts the city wants to target. That list, along with considerations of other city goals, becomes a city overlay — a set of specific measurable minimum requirements that go beyond the base construction code and may exceed a standard’s requirements. Figure 1: Example relationship between the city overlay and an existing rating system for a single- family home new construction. A development must comply with everything in the city overlay. For many components, the MN Green Communities rating system meets the city’s criteria. However, as this example shows the city is specifically targeting higher building performance with DOE Zero Energy Ready certification. Applicable rating systems and the overlay should both be included in a policy. The two work in tandem, giving the city high-level policy customization, while giving developers flexibility in how to meet the targets. One benefit for the city is that using such rating systems lessens the need for specialized staff. In addition, leveraging existing rating systems that are well known in today’s construction industry allows for ease of communication and cost-effectiveness of implementation. 1 Green building rating systems — sets of sustainability criteria with detailed and proscriptive pathways for meeting the criteria. They are generally broad covering many sustainability areas (e.g., water, energy, waste, materials) and can include topic focused standards (e.g., Sustainable Buildings 2030 energy standard). DOE Zero Energy Ready Homes ENERGY STAR® certification Water conservation, waste diversion, indoor environmental quality, etc. City Overlay: Single Family Residential Rating System: MN Green Communities 3 Leverage existing third-party rating systems Cities with existing sustainable building policies recognize the value of standardization across the region — the more ubiquitous the rules, the more practiced the industry becomes at complying with them and the more cost-effective implementation becomes. Because of the unique characteristics of different building types, policy requirements should specify the appropriate rating system for each building type. The table below shows the most common and recommended minimum rating systems and their associated levels by building type. Municipal, Commercial, Mixed- Use, Industrial • LEED for New Construction and Major Renovations; Certified Silver or higher • B3 Guidelines Multifamily • LEED for New Construction and Major Renovations; Certified Silver or higher • B3 Guidelines • GreenStar Homes; Certified Silver or higher • Green Communities * Single-family • LEED for Homes; Certified Silver or higher • MN GreenStar; Certified Silver or higher • Green Communities* Parking • Park Smart Silver *For projects with MHFA funding, it is recommended that the MN Overlay version be used. Establish City Overlay Criteria Below we lay out the most common overlay criteria. Where possible, criteria are performance-based, which gives developers flexibility, and drives innovation and cost efficiencies. Cities should prioritize criteria for adoption that balance needs for implementation with city goals to ensure policy success. It is also important to note that as environmental and economic conditions change, flexibility within each criterium is valuable. For that reason, it is recommended that a department director be charged with promulgating the detailed overlay requirements. It is also critical to include a third-party verification component in the policy. Verifiers should be proposed by the developer and acceptable to the city. 4 Recommended Overlay Criteria Recommended Rule Predicted and actual energy use Meet SB 2030 Energy Standard through design and operation; for 1-3-unit buildings, meet DOE’s Zero Energy Ready Homes standard. Predicted greenhouse gas emissions Calculate and report. Predicted and actual use of potable water Achieve 30% below the water efficiency standards of the Energy Policy Act of 1992. Predicted use of water for landscaping Achieve 50% reduction from consumption of traditionally irrigated site. Utilization of renewable energy Evaluate 2% of on-site renewables; install if cost-effective using SB 2030 guidance. Electric vehicle charging capability (if parking is included) Install conduit that allows charging stations to be installed at a future date. Diversion of construction waste from landfills and incinerators Achieve 75% diversion rate Indoor environmental quality Use low-VOC (volatile organic compounds) materials including paints, adhesives, sealants, flooring, carpet, as well as ASHRAE thermal and ventilation minimums. Stormwater management Adhere to quantity and quality requirements, including infiltration rate, suspended solid, and phosphorous reductions. Resilient design Document a design response to several identified potential shocks and stressors such as utility interruption, extreme rainfall and transportation interruption. Design Team shall integrate the identified strategies into the design of the project. Ongoing monitoring of actual energy and water use Benchmark using ENERGY STAR® Portfolio Manager annually. 5 Policy Triggers Given the regional competition for development, cities often balance priorities of encouraging development while achieving community-wide goals, such as sustainability targets. For this reason, we 1) encourage the greatest number of cities to adopt similar sustainable building policies to standardize the practice across a region, and 2) recommend cities consider their unique leverage points for the greatest impact. Cities can use the following triggers to activate a sustainable building policy: 1. Funding incentives. The most straightforward trigger is a developer’s request for public funding. To date, several cities have successfully used a minimum trigger of $200,000 in cumulative public funding. The types of qualifying funding sources vary. We recommend maximizing public funding sources for the greatest impact. (See examples below.) 2. Land use incentives. Though there is little track record of this approach for sustainability in Minnesota, it is used in other areas of the country. For cities with established zoning rules, we recommend cities consider three types of land use triggers: a. Planned unit development (PUD). Where a city has a large tract of land for development, it can set high-level density and other rules, such as a sustainable building policy, for the site, while giving the developer flexibility in how that is accomplished. b. Premiums. Setting clear expectations for developers can reduce costs and encourage specific types of development. We recommend cities consider codifying sustainability premiums as an incentive for density and height bonuses. c. Variance. Where not codified as premiums, cities should consider applying a policy when more intense variances are requested. 3. Process incentives. Cities can create faster approval processes and higher prioritization in permit and inspection reviews for developments that adhere to the sustainable building policy. This has not yet been tried in Minnesota but has been done elsewhere. 4. Building size. Because larger building developments have the greatest environmental impact and more sophisticated design teams, we recommend that a policy apply to buildings that meet the following size thresholds. This trigger is only activated when a project receives a funding, land use, or process incentive. a. New construction of 10,000 square feet and greater. b. Significant renovation of buildings 10,000 square feet and greater that include a new heating, ventilation, and air conditioning (HVAC) system. Funding Sources Comprehensive policies count all public dollars toward the threshold that triggers compliance including: 1. Community Development Block Grants (CDBG) 2. Bonds 3. Tax Increment Financing (TIF) 4. HOME Investment Partnership Program 5. Housing Redevelopment Authority funds 6. Land write-downs 7. Low-Income Housing Tax Credits (LIHTC) 8. A dedicated Sustainable Building Policy fund 9. Any other Federal, State, Regional (e.g., Met Council), or City funding source 6 Enforcement Enforcement can be approached from two angles — either for financially incentivized projects or for those triggered by land use and process incentives. The financial incentive is often needed to encourage and make such developments viable in the first place, making a financial penalty for non-compliance challenging to employ. For that reason, the best practice is to be proactive on the front end, providing sufficient resources and check-ins during the design development process to ensure compliance along the way. For projects triggered by land use and process incentives, the city could enact a fine for violation, which has been done in other American cities with some as high as $500 per day for non-compliance. In either case, compliance with the sustainable building policy should be included in the development agreement and loan documents. Evaluation Cities should evaluate a policy’s impact and adjust over time in order to meet stated goals. A best practice is to build a framework for these components within the policy itself by requiring an annual progress and impact report and setting a reassessment timeline (e.g., every 3-5 years) for overlay criteria and the approved third-party rating systems. Codify the Policy After the city council or board adopts the sustainability building policy, it is important to codify the policy within or near zoning- and planning-related chapters in city code because a sustainable building policy concerns land development. IMPLEMENTATION GUIDE Before approval, it is important to have a plan to address questions of “how” — namely, how to operationalize the policy. Policy adoption alone will not ensure a sustainable building policy will be successful. Additional steps are needed to create structure, ownership, and awareness of the policy. Identify Leaders and Collaborators Policies are often managed by departments that are responsible for education, awareness, and enforcement. In some cases, these responsibilities may fall across departments, so it is important early on to identify the department and individual who will take primary ownership for the policy. Below is a list of key stakeholders to involve: Sustainability Staff As topic specialists, sustainability staff should either lead or play a significant part in policy development and assist in policy implementation. Such staff can advocate for the policy internally and educate external stakeholders. In addition, any initial meetings with 7 a project’s development team should include sustainability staff or other designated, qualified individuals who can speak to the technical nature of sustainability requirements. Planning Department City planning departments should be involved in the management of the sustainable building policy. City planners are responsible for reviewing project applications, engaging with developers, and ultimately drafting the developer’s agreement, which is the document holding a project developer accountable for following policies and codes. External Collaborators External partners can provide technical assistance to project teams to meet policy rating systems. These generally fall into two categories: • Specific: A partner that develops and manages an individual rating system is best equipped to answer questions regarding pathways for compliance for their rating system (e.g., USGBC for LEED). • Broad: A partner that can answer questions across multiple rating systems. Increase Awareness of the Policy A key question to ask is: how do developers, architects, and contractors know the policy exists? If the policy is new, or if major changes have been made to an existing policy, cities should take proactive steps to inform their development community about how this policy will impact future projects. At minimum, cities should post the policy clearly on the city’s website for easy access. Additional engagement would build support and acceptance of the policy. We recommend cities offer trainings, networking events, and building tours, as well as engage building associations to spread the word about the policies. Cities could also partner on outreach initiatives to increase reach and minimize cost. Community Highlight: St. Louis Park, MN Because the City’s Community Development Department oversees project and land use applications as well as financial incentives for development, it is a natural fit for the sustainable building policy to be managed by that department. Sustainability staff, who are in a different department, remain engaged by attending project meetings with developers to educate them about the City’s climate goals and aspects of the policy. The City also keeps an architecture and engineering firm on retainer for more detailed review beyond sustainability staff’s abilities and to help developers meet the goals of the policy. Community Highlight: Rochester, MN The City of Rochester hosts green building tours to showcase successful implementation of their policy in new development. Developers and architects can tour new buildings, ask questions, and learn how their peers are following Rochester’s sustainable building policy. 8 Identify Projects Subject to the Policy Although a policy itself specifies minimum requirements for subject developments, the city must create a process to easily identify incoming projects that meet those requirements. This is accomplished by leveraging existing development review processes. Planners also often use checklists and review guides to ensure projects meet required development policies and codes. For that reason, we recommend cities use this process to integrate a review for the sustainable building policy. Cities should make sure someone with sustainability expertise, either sustainability staff or other designated reviewers, attend development review meetings. Educate Project Teams Once the city has identified an eligible project, the policy should be reviewed with the project’s development team to ensure they understand all the components of the policy. This is a great opportunity for development teams to ask questions and for city staff to champion their policy. This meeting should be scheduled after a project application or funding application is received to ensure policy criteria can be incorporated as early as possible in the design process. Having the right people at the meeting will ensure that the policy expectations are clearly communicated, and any questions are addressed. On the city’s side, this meeting should include those involved in managing the policy, such as sustainability and planning staff. If the city is working with an external collaborator to help with technical assistance, including them in this meeting would be advantageous. From the project team, the architect and owner’s representative should be invited so that the team responsible for designing and funding the project understand the expectations. Ensure Compliance A best practice for compliance is for cities to connect project teams with external collaborators who are technical experts in both the development process and sustainability requirements. Cities then track compliance with the list of requirements. Because most projects that have been subject to sustainable building policies in Minnesota have been commercial, mixed use, or large multifamily, city staff have relied on the B3 Tracking Tool to monitor compliance for most recommended overlay criteria and then have separate manual tracking mechanisms to track any remaining criteria. Community Highlight: Saint Paul, MN The City of Saint Paul uses funding and size minimums to determine the projects subject to their sustainable building policy. After public project funding is requested and before it is approved, the staff member responsible for managing the policy is notified of the project. Staff send a letter to the project team detailing compliance requirements for the project, and soon after they hold a meeting involving the project team to review these requirements. Sustainability staff leverage this opportunity to walk through the policy step by step to make sure there are no surprises for the project team. 9 Another best practice is to leverage other existing processes for front end-confirmation of sustainable design, such as Xcel Energy’s Energy Design Assistance program and other similar utility programs that incentivize energy modeling to meet building performance criteria. Enforce the Policy Enforcement comes into play once a project receives the necessary approvals to start construction. In most cases, following the previous steps will ensure that a project adheres to the policy; however, if the project does not meet minimum standards, enforcement may be necessary. Formal enforcement should be codified in the policy, so developers understand the implications of not complying. Informally, city staff can communicate with project teams about the negative impact to their relationship and concerns over future projects following city policies. Evaluate Impact Evaluating the policy’s impact helps city staff and city decision-makers understand if the policy achieved the intended goals. Project reports should detail the size, cost, and anticipated savings compared to actual performance. A summary of these along with the collective environmental benefits (e.g., gallons of water and greenhouse gas emissions saved compared to code) should be shared with city council, staff, and the public. In addition, annual or biennial reviews with project teams, city staff, and external collaborators give valuable input into the effectiveness of the policy. Cities should talk to project teams about what worked and what could be improved about the sustainable building policy’s implementation process. They should also talk to external collaborators and sustainability experts about the latest trends and best practices for sustainable buildings. Having both quantitative and qualitative data on the policy’s success will be useful during future policy updates to strengthen its impact. FUTURE CONSIDERATIONS Going forward, these policies should evolve as new sustainability standards become available and as city goals around reducing structural racism and ensuring equity become clearer and more focused. As cities find alignment on these issues, they should continue to exchange best practices and evolve together. We recommend cities check in on at least a biannual if not quarterly basis. This could be led by cities themselves or by an external coordinator. Areas that may warrant further exploration include: • Compliance tracking tool. Cities currently lack a holistic method for tracking compliance for all property types and may benefit from the development of one. Community Highlight: Rochester, MN The City of Rochester structures their Tax Increment Financing (TIF) agreements as pay-as- you-go disbursements, giving the city the opportunity to withhold future disbursements if a project does not adhere to certain policies or codes. The city has used this approach for projects in the Destination Medical Center and throughout the municipality. 10 • Additional compliance strategies. Another possible route to ensure compliance is by leveraging permitting and inspections processes. However, because construction code is prescriptive and most sustainability criteria is performance-based, there has been no attempt in Minnesota thus far to take either of these two routes: o During permit approval. Because cities approve permits that give the green light for construction, they could explore issuing permits only once design models adequately indicate that sustainability requirements will be met. Incorporating permit approvals that are based on modeled designs of performance would necessitate thorough consideration of expertise and permitting staff needs. o During inspections. Building inspectors could take a bigger role in ensuring sustainability criteria are incorporated during construction. Similar to design review for permits, inspectors evaluate a building based on prescriptive code. For that reason, inspector scope would need to expand to include evaluation against a performance-based model design. • A one-stop-shop for expertise on sustainable building policies. An external collaborator would not only consult on multiple rating systems, but also serve as a single point of communication for technical questions and compliance monitoring for project teams and cities, respectively. This type of group has not yet been established to serve Minnesota cities. However, such a partner with broad expertise, design review experience, and implementation support ability could serve multiple cities while reducing sustainability staff needs. Although sustainable building policies have been around more than a decade in Minnesota, there remain great opportunities for more cities to leverage such policy tools and for better standardization among cities to ease implementation. As cities actively invest in new developments or receive developer requests outside existing zoning rules, they can use these policies to achieve sustainability goals. In the end, the built environment has strong impacts on environmental health and livability, and sustainable building policies are an important tool to build the physical environment that cities want and need. APPENDIX See a table summary of current Minnesota municipal sustainable building policies here: https://www.mncee.org/minnesota-municipal-sustainable-building-policies-guide 11 CategorySubcategoryCitySaint PaulSt. Louis ParkRochesterDuluthEdinaMaplewoodMinneapolis - EnterpiseMinneapolis - Residential 1-3Minneapolis - MultifamilyNorthfieldPolicy Sourcehttps://stpaul.legistar.com/LegislationDetail.aspx?ID=3287262&GUID=CF83D092-B5F9-443B-8B72-28AA846CE8A8&Options=&Search=&FullText=1https://www.stlouispark.org/home/showdocument?id=18588https://www.rochestermn.gov/home/showpublisheddocument?id=26828https://duluthmn.gov/media/5536/form-udc-sustainability-checklist-120.pdfhttps://edina.novusagenda.com/AgendaPublic/CoverSheet.aspx?ItemID=12522&MeetingID=1775https://library.municode.com/mn/maplewood/codes/code_of_ordinances?nodeId=COOR_CH12BUBURE_ARTIIBUCO_S12-41GRBUhttps://lims.minneapolismn.gov/Download/RCAV2/25330/Draft%20Sustainable%20Building%20Policy.pdf; https://lims.minneapolismn.gov/Download/RCAV2/25330/Draft%20Sustainable%20Building%20Policy.pdfhttps://lims.minneapolismn.gov/Download/RCAV2/15500/Sustainability-Policy---1-to-3-units_Final.pdfhttps://lims.minneapolismn.gov/Download/RCAV2/11549/Sustainable%20Building%20Policy%20Resolution.pdfhttps://northfield.legistar.com/LegislationDetail.aspx?ID=5368140&GUID=850E8118-34C3-4768-84A9-7FE4A878A6CC&Options=&Search=&FullText=1NameSustainable Building PolicyGreen Building PolicySustainable Building Guidelines Sustainability StandardsSustainable Building PolicyGreen Building Code Enterprise Sustainable Building PolicyMinneapolis Homes Sustainability PolicySustainable Building PolicyAdoption ModeOrdinanceResolutionResolutionResolutionOrdinanceOrdinanceResolutionResolutionResolutionResolutionSystem UsedCity Overlay + Third Party Rating SystemCity Overlay + Third Party Rating SystemCity Overlay + Third Party Rating System* Third Party Rating System - OR - Point SystemCity Overlay + Third Party Rating SystemGreen CodeCity Overlay + Third Party Rating SystemCity Overlay + Third Party Rating SystemCity Overlay + Third Party Rating SystemCity Overlay + Third Party Rating SystemMunicipalYesYes, for buildings 15,000 square feet and greaterYesYes, for developments 10,000 square feet and greaterYesYesYes, for projects 10,000 + sqftYesCommercialYesYes, for buildings 15,000 square feet and greaterYesYes, for developments 10,000 square feet and greaterYesYesYesMultifamilyYesYesYesYes, for developments 3 units and greaterYesYesYesYesSingle FamilyYesYesYesYesYesYesYes, for residential 1-3 unitsYesIndustrialYesYes, for buildings 15,000 square feet and greaterYesYes, for developments 10,000 square feet and greaterYesYesYesParkingYesYesYesYesRenovations / AdditionsNew construction means the planning, design, construction and commissioning of a new building, or an addition to an existing building if such addition requires installation of new mechanical, ventilation, or cooling systems.Renovations of municipal, commercial, and industrial buildings at least 50,000 square feet and greaterRenovations performed on an existing building or portion thereof consisting of at least 10,000 square feet for non-municipal buildings and 2,500 square feet for municipal buildings, and requiring installation/replacement of HVAC systems. Additions of 10,000+ sqft that require new HVACYesThis policy will apply to all additions, renovations, and site work (including workspaces) on buildings that the City owns or leases when project costs are 50% or more of the total building valuation. For renovation projects less than 50% of the total building value and leased space not owned by the City, this policy will beused as a best practices guide and evaluate on a case-by-case basis any renovations required by the City, proprietary ownership of HVAC, electrical, and water systems, and other considerations that affect the City’s influence. When the City is determined to have influence in renovations that fall within policy criteria, these policy standards will apply. Renovations performed on an existing building or portion thereof consisting of at least 10,000 square feet for non-municipal buildings and 2,500 square feet for municipal buildings, and requiring installation/replacement of HVAC systems. Additions of 10,000+ sqft that require new HVACMechanismsProject receiving more than $200,000 in financial assistance or is built with the intent of having the City or HRA become the sole tenant.Private developments receiving more than $200,000 in financial assistance; residential private MF $200,000+ and single family $10,000+All tax increment financed projectsProjects of specified size.Projects receiving financial assistance through the City or HRA. No $ threshold. OR projects requesting Planned Unit Development approval. OR projects in which the City or HRA is to become the sole tenant.Projects receiving city financingMunicipal projects only.Minneapolis Homes projectsProjects receiving financial assistance from the City, EDA, or HRA. Projects receiving $300,000 or more in public fianncial assistance are required to follow the policy. Those receiving $150,000-299,999 must comply or prove they are unable to. OR projects in which the City or HRA is to become the sole tenant. Funding Sourcea. Community Development Block Grants (CDBG) b. Tax Increment Financing (TIF) c. HOME Investment Partnership Program (HOME) d. Multi-Family Housing Revenue Bonds e. Low-Income Housing Tax Credits (LIHTC) f. Any other Federal, State, or Metropolitan Council (Met Council) funding source g. Any other City of Saint Paul funding source h. Any other HRA funding source i. Notwithstanding the above, City Funding does not include the following: a. Department of Employment and Economic Development (DEED) Cleanup and Investigation Grants b. Met Council Tax Base Revitalization Account (TBRA) Contamination Cleanup Grants c. Met Council TBRA Site Investigation Grants d. Conduit Bonds issued for the benefit of qualified 501(c)(3) entitiesa. City of St. Louis Park Community Development Block Grant (CDBG) b. Housing Improvement Area Loans c. Housing Rehabilitation Fund d. Reinvestment Assistance Program Revenue Bonds (private activity bonds are negotiable) e. Tax Increment Financing (TIF) f. Tax Abatement Housing Authority (HA) g. Funds Land h. WritedownsTax Increment Financingi. Tax Increment Financing (TIF) ii. HRA Fundsiii.Metropolitan Council Livable Communities Grantiv. Housing Improvement Area v. Affordable Housing Trust Fund v. Conduit Bondsvi. Land write-downs below market valuevii. Other funds that are available to the City of Edina and Edina HRANotwithstanding the above, Financial Assistance does not include environmental remediation funds such as the following: i. Department of Employment and Economic D Development (DEED) Cleanup and Investigation Grants ii. Met Council Tax Base Revitalization Account (TBRA) Contamination Cleanup Grantsiii. Met Council TBRA Site Investigation GrantsAny for muni projects.Any for Minneapolis Homes Financed projects.a. Tax Increment Financing (TIF)b. HRA Fundsc. EDA grants and forgivable loansd. Land write downse. Bondsf. Tax abatementg. Low-income housing tax credith. MIF i. Conduit financingj. Other funds requiring approval by the City of Northfield, Northfield EDA and Northfield HRANotwithstanding the above, Financial Assistance does not include environmental remediation funds, including but not limited to such as the following:, a. Department of Employment and Economic Development (DEED) Cleanup and Investigation Grants.Municipal (select 1)i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B3 iii. Saint Paul Port Authority Green Design Reviewi. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B3i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B3i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. Points (# of which depends on building size))i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B32012 International Green Construction Codei. LEED for New Construction and Major Renovation; Certified Gold ii.State of Minnesota B3 Guidelines iii. Passive House US Certified Commerciali. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B3Commercial (select 1)i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B3 iii. Saint Paul Port Authority Green Design Reviewi. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum* ii. B3*i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B3i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. Points (# of which depends on building size))i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B32012 International Green Construction Codei. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B3Multifamily (select 1)i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii.State of Minnesota B3 Guidelines certified iii. GreenStar; Certified Silver, Gold or Platinum iv. Green Communities; Certifiedi. LEED for New Construction and Major Renovation Certified Silver, Gold or Platinum** ii. GreenStar; Certified Silver or greater** iii. MN Green Communities - MN Overlay**i. LEED for New Construction and Major Renovation; Certified Silver or greater ii. GreenStar; Certified Silver or greater iii. MN Green Communities - MN Overlayi. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. Points (# of which depends on building size))i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii.State of Minnesota B3 Guidelines certified iii. Enterprise Green Communities; Certified2012 International Green Construction Codei. Green Communities; Certifiedi. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii.State of Minnesota B3 Guidelines certified iii. Green Communities; CertifiedSingle Family (select 1)i. LEED for Homes ii. GreenStar; Certified Silver, Gold or Platinum iii. MN Green Communities - MN Overlayi. LEED for Homes** ii. GreenStar; Certified Silver, Gold or Platinum** iii. MN Green Communities - MN Overlay**i. LEED for Homes ii. GreenStar; Certified Silver, Gold or Platinum iii. MN Green Communities - MN Overlayi. LEED for Homes; Certified Silver, Gold or Platinum ii. Points (# of which depends on building size))i. LEED for Homes ii.State of Minnesota B3 Guidelines certified iii. Enterprise Green Communities; CertifiedCC 700-2008 National Green Building Standardsi.MN Green Communities - MN Overlayi. LEED for Homes ii.State of Minnesota B3 Guidelines certified iii. Green Communities; CertifiedIndustrial (select 1)i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B3 iii. Saint Paul Port Authority Green Design Reviewi. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum* ii. B3*i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. Points (# of which depends on building size))i. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B32012 International Green Construction Codei. LEED for New Construction and Major Renovation; Certified Silver, Gold or Platinum ii. B3ParkingPark Smart Minimum Silver CertificationPark Smart Minimum Silver CertificationPark Smart Minimum Silver CertificationUniversal Sustainability Requirements (a.k.a. overlay)a. Predicted and actual energy use b. Predicted greenhouse gas emissions c. Predicted and actual use of potable water d. Predicted use of water for landscaping e. Utilization of renewable energy f. Electric vehicle charging capability g. Diversion of construction waste from landfills and incinerators h. Indoor environmental quality i. Stormwater management j. Resilient Design k. Ongoing monitoring of actual energy and water use2% of energy needs to be met on site through renewable energy; that projects be electric vehicle ready (including prewiring); it will include a resilience component, that is a tool for developers to identify “shocks and stressors” a building may encounter and potentially alleviate; and it will require tracking actual water usea. Predicted and actual energy use and greenhouse gas emissions - meet SB 2030 Energy Standard through design and operation*** b. Predicted and actual use of potable water: 30% below Energy Policy Act of 1992levels*** c. Predicted and actual use of water for landscaping: 50% reduction from consumption of traditionally irrigated site*** d. Diversion of construction waste from landfills and incinerators: 75% diversion rate*** e. Indoor Environmental Quality: Low VOC materials includes paints, adhesives, sealants, flooring, carpet as well as ASHRAE thermal and ventilation minimums*** f. Stormwater Management: Quantity and quality requirements, including infiltration*** g. Comply with benchmarking ordinance h. Obtain a written cost estimate for achieving “green” certification by at least one third party sustainable building programa. Predicted and actual energy use and greenhouse gas emissions - meet SB 2030 Energy Standard through design and operation b. Predicted and actual use of potable water: 30% below Energy Policy Act of 1992 levels c. Predicted and actual use of water for landscaping: 50% reduction from consumption of traditionally irrigated site d. Utilization of renewable energy: Evaluation of 2% of on-site renewables; installation if cost-effective using SB 2030 guidance e. Electric vehicle charging capability: install conduit that allows charging stations to be installed at a future date f. Diversion of construction waste from landfills and incinerators: 75% diversion rate g. Indoor Environmental Quality: Low VOC materials includes paints, adhesives, sealants, flooring, carpet as well as ASHRAE thermal and ventilation minimums h. Stormwater Management: Quantity and quality requirements, including infiltration rate, suspended solid and phosphorous reductions i. Resilient Design: Document a design response to several identified potentiala. Predicted greenhouse gas emissionsi. Calculated and reportedb. Electric vehicle charging capabilityi. 5% of parking spaces must be dedicated to Level 2 or higher charging stations –OR- ii. Install conduit that allows 10% of spaces dedicated to Level 2 or higher charging stations, which would be installed at a future datec. Energy efficiency standardi. For 1-4 unit residential New Construction and Major Renovation projects:1. US Department of Energy Zero Energy Ready Homesii. For all other residential and commercial New Construction and Major Renovation projects:1. Sustainable Buildings 2030d. Bird-safe glazingi. For New Construction and Major Renovation projects seeking LEED:1. Achieve bird collision deterrence pointii. For New Construction and Major Renovation projects seeking all other Sustainable Rating Systems:1. Follow B3 Guideline S.9: Bird-Safe Buildinga. Diversion of construction waste from landfills and incinerators: 75% diversion rate a. Total Annual Energy Use - meet SB 2030 Energy Standard and benchmark annually b. Renewable Energy - meet 10% of annual energy need on-site thru renewables if cost effective thru use of social cost of carbon and 15-year simple payback; project must be solar capable c. EV-ready for all parking; charging capacity for 20% of total spaces levelsd. Benchmark indoor and outdoor water use e. Predicted and actual use of potable water: 50% below Energy Policy Act of 1992f. Natural hazard assessment and design response; as defined by specific project’s RFPg. Assessment of renewable energy generation battery storageh. Irrigation – designed landscape requires no potable water after 2-year establishment periodi. Stormwater management – must meet new Mpls Stormwater and Sanitary Sewer Guide; seek to retain on site j. Bird Strike – WBTF of 45 or less for non-critical sites; 15 or less for critical sitesk. Native plantings – 25% of site native plants; biochar and compost when possiblel. Pollinator friendly plantings – utilize pollinator species when possiblea. Minimum efficiency standard - Department of Energy Zero Energy Ready Homes (ZERH) ProgramCouncil directed staff to develop these but none have been adopted as of 2022.02.07.a. Predicted greenhouse gas emissionsi. Calculated based on predicted energy use, as ascertained through the sustainability rating system modeling, using utility emissions factors and reported to the City in metric tons of CO2eb. Energy efficiency standardi. For 1-4 unit residential New Construction and Major Renovation projects:1. US Department of Energy Zero Energy Ready Homes ii. For all other residential and commercial New Construction and Major Renovation projects:1. Sustainable Buildings 2030c. Renewable energy standardi. Conduct economic and technical evaluation of providing 2% of building energy load with on-site renewablesii. Install if cost-effective using a payback of 15 years following the Sustainable Buildings 2030 methodologyUniversal Equity Requirementsa. Complete Racial Equity Impact Analysis formb. Incorporate Universal Designc. Wayfinding throughoutd. At least one private-use space (lactation room) Universal Engagement RequirementsUtilize the City's Racial Equity Impact Analysis (https://minneapolismngov.sharepoint.com/:w:/r/sites/c00003/SREAP/REIA/_layouts/15/Doc.aspx?sourcedoc=%7BF330B777-BED3-42C4-9FB0-5678238F4CC2%7D&file=Racial%20Equity%20Impact%20Analysis%20FULL%20.docx&action=default&mobileredirect=true) and guide (https://lims.minneapolismn.gov/Download/File/4827/REIA_Process_Guide.pdf)Point System CategoriesNoneNoneNoneLocation, Energy Efficiency, Alternative Energy, Passive Solar, Water, Stormwater, Vegetation, Urban Agriculture, Transportation* Developers must use one of the design tools and submit a checklist of credits likely to be achieved. Certification is not required.* Proposed developments receive higher priority for funding if proposals meet one of these standards** Proposed developments receive higher priority for funding if proposals meet one of these standards***For non-residential developments onlyRequirementsAffected DevelopmentsPolicy TriggersNotes