AGENDA #12

MEMORANDUM

TO:

Roger L. Stancil, Town Manager

FROM:

J.B. Culpepper, Planning Director

David Bonk, Long Range and Transportation Coordinator

SUBJECT:

Report on the Proposed Expansion of the Policy to Encourage Renewable Energy Planning with Rezoning Applications and Accompanying Special Use Permits

DATE:

April 23, 2007

PURPOSE

This report provides additional information following the April 11, 2007 consideration of the expansion of the Town’s existing policy to encourage renewable energy planning with rezoning applications and accompanying Special Use Permit applications.  We recommend adoption of the revised resolution, which contains additional language that would allow Council to consider an acceptable level of energy efficiency in the context of indoor air quality, occupants’ access to natural lighting, and utilization of sustainable energy.

BACKGROUND

On November 12, 2001, the Council adopted a resolution to encourage renewable energy planning in rezoning applications (Attachment 1).

On March 5, 2007, the Sustainability, Energy and Environment (SEE) Committee petitioned the Council to expand the November 12, 2001 resolution to encourage renewable energy planning in rezoning applications.  The proposed amendment to the 2001 resolution would include language stating the Council’s policy to encourage a standard of energy efficiency which exceeds by 20 percent the standards set by the American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE) in 2004, and would encourage applicants to include consideration of sustainable energy as an element of new development proposals. The petition was received and referred to staff.

On April 11, 2007, the Council received a memorandum (Attachment 2) which responded to the March 5, 2007 petition to Council.  The memorandum proposed a resolution to expand the existing policy to encourage renewable energy planning in rezoning applications by encourage applicants to include a “20 percent more energy efficient” feature in their development plans, and to address energy consumption through submission of an Energy Management Plan.  The plan would include consideration of utilizing sustainable energy sources, production of sustainable energy, and purchase of carbon offset credits through coordination with the NC Greenpower program.  The Council requested that the item be discussed further on April 23, 2007. 

DISCUSSION

Both the 1989 Comprehensive Plan and the 2000 Comprehensive Plan included provisions encouraging energy conservation and the use of renewable energy in Chapel Hill.  During the current and ongoing process of revising the Comprehensive Plan, the Planning Board has recommended that the staff address the topic of sustainability.  Environmental stewardship is one of the three interdependent variables most generally thought of as components of sustainable communities, and one in which the necessity of energy efficiency is most applicable. [1]

The resolution proposed on April 11, 2007 would encourage applicants to exceed by 20% the energy efficiency standard established by the American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE). The resolution also proposes that applicants may similarly exceed other comparable building standards generally recognized as applicable to energy consumption in buildings, as amended, and applicable at the time of building permit issuance.  

ASHRAE Standards

The American Society of Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE) is a national organization made up of engineering professionals interested in refrigeration processes in buildings and the design and maintenance of indoor environments. ASHRAE produces building code standards for commercial and residential buildings for the purpose of establishing consensus for: 1) methods of test for use in commerce and 2) performance criteria for use as facilitators with which to guide the industry.  Consensus standards are developed and published to define minimum values or acceptable performance.  ASHRAE standards may be incorporated into state building codes or used electively by developers, designers, and engineers involved in building projects.  ASHRAE’s standards 90.1 2004 and 90.2 2004 address energy efficiency in commercial buildings and low-rise residential buildings, respectively.   

 State of North Carolina 2006 Building Code

The State of North Carolina has adopted the 2004 ASHRAE standard for energy efficiency as part of its 2006 State Building Code for commercial buildings, a building category that includes commercial buildings, institutional buildings, and public assembly buildings.  Apartment buildings and condominium developments over 3 stories are also included in the commercial building category of the 2006 code.  Standards for dwelling units which are 3 stories or less, such as townhomes and single or 2-family detached houses, are addressed separately by the State.  The State Building Code for low-rise residential buildings does not include the 2004 ASHRAE standards for energy efficiency; however, developers may choose to adopt standards beyond those required by the State. We understand the State will publish an updated Residential Building Standard manual later this year which will make the energy standards for low-rise residential buildings identical to the State Energy Code for those building types.  Any energy efficiency measures required by the State Energy Code will be included in the updated Residential Building Standard.

Energy Efficiency Certification Programs

It is important to note that it is possible for developments to receive energy efficiency certifications as a result of increasing their energy efficiency and sustainable energy use.  Buildings which exceed ASHRAE energy efficiency standards are often eligible for one or more of the certifications described in the list below.

It is also important to note that developers and builders who construct energy efficient buildings are eligible for federal and state tax credits, lower utility rates, rebates, and appliance discounts.  Developers may use these financial incentives as marketing tools for their projects, as the savings are often passed on to buyers and occupants of buildings.  The North Carolina Healthy Built Homes program estimates that homeowners who install more than $3,000 of energy efficient upgrades will add a fixed amount of $20 to their monthly mortgage cost and reduce their utility bills by $45 each month, resulting in a net savings of $25 dollars per month.

Energy Efficiency Evaluation Software

Several energy efficiency software programs are available that guide developers, designers, engineers, and builders in the selection of measures that will enable them to increase the energy efficiency of their buildings beyond required standards. These are often available at no cost and may be used through an interactive web platform or downloaded from public internet sites.  Examples of energy efficiency software include EnergyPlus (developed by the Department of Energy) and REM/Rate and REM/Design (both developed by the Architectural Energy Corporation).

Energy Management Plan

The resolution proposed on April 11, 2007 (and revised with this memorandum), would also state the Council’s expectation that applicants submit an Energy Management Plan to address the ongoing energy use of the proposed development as part of their development application.  The plan would explore the feasibility of utilizing sustainable energy, currently defined by the NC Greenpower program as solar, wind, biofuels, and hydroelectric power, in the proposed development.  The plan would also consider the purchase of carbon offset credits and green power production through coordination with the NC Greenpower program.

We will assist developers submitting rezoning applications and accompanying Special Use Permit applications by providing written material that explains each element of an Energy Management Plan, as well as additional details on the 2004 ASHRAE energy efficiency standards, and subsequent amendments.  

Although energy efficiency is an essential element of the sustainable building concept, in some cases the measures taken to achieve a greater level of efficiency may result in decreased indoor air quality, inadequate access to natural lighting, or a limited ability to utilize sustainable energy.  We believe it is essential to ensure the development of buildings which support their occupants’ quality of life and the elements of an applicant’s Energy Management Plan.  Therefore, we revised the resolution to include language referencing indoor air quality, occupants’ access to natural lighting and utilization of sustainable energy.

NEXT STEPS

We will develop materials that provide additional information on ASHRAE standards, green building certification programs, and the elements of an Energy Management Plan as proposed in the attached resolution.

RECOMMENDATION

We recommend that the Council adopt the attached revised resolution, which provides modifications to the resolution proposed on April 11, 2007.  The modified resolution would update the Council policy to encourage renewable energy planning with rezoning applications, in accordance with the energy efficiency provisions included in the 1998 and 2000 versions of the Comprehensive Plan.  The resolution states that it is the expectation of the Council that applicants seeking approval of rezoning applications include a “20 percent more energy efficient” feature in their plans, and that applicants explore the feasibility of utilizing sustainable energy, the purchase of carbon offset credits, and green power production.

The modified resolution also includes language which would promote Energy Management Plans which would provide for an acceptable level of increased energy efficiency in the context of indoor air quality, adequate access to natural lighting, and proposed utilization of sustainable energy in a development.

ATTACHMENTS

  1. November 12, 2001 resolution regarding renewable energy planning in rezoning applications (p. 7).
  2. April 11, 2007 memorandum regarding expansion of renewable energy planning in rezoning applications (begin new page 1).

[1] The three variables generally viewed as components of a Sustainable Community are:  environmental stewardship, economic viability, and social equity.