Regulation to allow Green Liens for Retrofits - GBF2009

Regulating to allow green liens for Retrofits Sonja Persram, BSc., MBA, LEED ® AP Sustainable Alternatives Consulting Inc. Presented to the: Green Building Festival / IIDEX Thursday, September 24, 2009

Bizarro Cartoons by Dan Piraro Used with permission

‘ Green Liens’ - Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Liens: definition & existing uses ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Municipal legislation provisions which enable municipalities to assist property owners with improvements.

LIC & CIP Liens: key features The following analysis focuses on LICs Yes Yes Loan attached to property No similar stipulation Not income i.e. no credit risk assessment . Criteria for eligibility Toronto TIEG grants require Toronto Green Standard No Building greening (examples) Yes Yes Loan payments: long-term surcharge on property tax Yes Yukon - renewables; Dawson Creek: EE/RE; Ontario: no Work includes energy efficiency improvements & renewables (EE/RE) Yes Not in Ontario Private property? No Yes Priority lien? CIPs (Planning Act) LICs (Ontario Municipal Act) Feature

Advantages of LIC-based improvements for property owners ,[object Object],[object Object],[object Object],[object Object]

Enabling LICs to support EE/RE improvements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Benefits to municipalities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Pilot project oversight & Quality Assurance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Green Energy liens: Technical considerations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Green Energy liens: Ontario Legislative changes + considerations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Green Energy liens : LIC Legislation Ontario Municipal Act 2001 S.O. 2001, CHAPTER 25 ,[object Object],[object Object],Prior to July 31, 2009, owners’ LIC Long-Term debt did not affect municipality’s debt and financial obligation limits. Seems to have changed. Issue may be addressed elsewhere via other provisions, or may imply need for reserve fund if municipality takes on debt. To avoid this impact on municipality, one strategy: loan is from third party.

Green Energy liens: Program Supports ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Additional supports Solar access/shade access Legislation Valuation Property value increment should include present value of energy savings. More in: Eisenberg, David & Persram, Sonja, Code, Regulatory and Systemic Barriers Affecting Living Building Projects, Cascadia Region Green Building Council, 2009

Green Energy liens: Social Equity considerations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Green Energy liens: Financial considerations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Green Energy liens: Triple-bottom-line decision-making ,[object Object],[object Object],[object Object],[object Object]

Decisions: Optimizing municipal $ ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Scaling up : who first?

Green Energy Liens Legislated: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Green Energy Lien USA Examples: key features Yes Yes ; via contractual assessment district Loan payments collected on property tax roll? Not credit rating Not income. Based on prop tax pmts + lien history . States on loan document that may do credit rating in future. Criteria for eligibility (social equity appeal) Yes Yes Transferrable to new owner County/Municipalities 3 rd party Lender EE/RE RE EE/RE Yes : HB 08-1350 & County Ballot Measure 1A Yes ; Mello Roos; Assembly Bill 811 Private property? Yes Yes (benefits lenders) Priority lien? Boulder, CO Berkeley/State of California Criterion

Example: City of Berkeley ‘ Berkeley FIRST’ ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The funds are reflected the City of Berkeley’s Balance Sheet although in ‘Special’ seg funds. City issues the bonds. Lender borrows + puts up collateral of same amount with bank (i.e. just in case lender decides not to lend a particular project, the bank just uses the collateral).

Example: Boulder County, CO ‘ ClimateSmart Loan Program’ ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Green Building Liens: Municipal Program Considerations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],24

Opportunities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Green Jobs Philly

Challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Who is considering green liens? ,[object Object],[object Object],[object Object],[object Object],[object Object]

Next steps ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Thank you! Sonja Persram, BSc., MBA, LEED® AP, President Sustainable Alternatives Consulting Inc. T: 416.324.9388 [email_address] www.sustainable-alternatives.ca

Regulation to allow Green Liens for Retrofits - GBF2009

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Regulation to allow Green Liens for Retrofits - GBF2009

Editor's Notes