55 DENVER THE MILE HIGH CITY Green Roofs Review Task Force City Council Meeting April 2nd, 2018 FOR CITY SERVICES DenverGov org 311 OVERVIEW OF THE AGENDA Quick Review of the Last Meeting The Task Force Process Since April 2nd. The Task Force Proposal Cost Comparison of the Ballot Initiative to the Task Force Proposal Public Input Process Quick Review of the Last Meeting Ordinance that was on the Ballot Benefits • Urban Heat Island • Green Spaces • Water and Storm Water Management • Greenhouse Gas Emission Reductions Costs and Unintended Consequences Task Force Meeting Timeline Meeting 1 Jan. 19 Meeting 3 Feb. 14 Meeting 2 Feb. 7 Meeting 5 Mar. 21 Meeting 4 Mar. 1 Meeting 9 June 7 Meeting 7 May 2 Meeting 6 Apr. 6 Meeting 8 May 23 Green Roofs Review Task Force Proposal Green Building Ordinance – Proposed Compliance Options New Buildings Green Roof / Green Space Green Solar (roof, terraces, podiums, gradelevel) (roof, terraces, podiums, grade-level, off-site) (roof, building, site, community) LEED v4 BD+C Certification and Solar (roof, building, site, community) Green area equivalent to: 10% of roof area x no. of floors (max 60% of roof area required) Green area equivalent to: 3% of roof area x no. of floors (max 18% of roof area required) AND On-site renewable energy or community solar total system production equivalent to: 7% of roof area x no. of floors (max 42% of roof area required) On-site renewable energy or community solar or Xcel Renewable Connect for a total system production equivalent to: 70% of roof area Minimum Gold level certification Financial contribution for off-site green space Green Energy Efficiency Enterprise Green Communities Certification Minimum 19% energy savings vs current City of Denver energy code Minimum certification (roof, terraces, podiums, grade-level) and Energy Efficiency Green area equivalent to: 10% of roof area x no. of floors (max 60% of roof area required) $17/sf of required green area Green area equivalent to: 3% of roof area x no. of floors (max 18% of roof area required) AND Minimum 8% energy savings vs current City of Denver energy code * All buildings will require a Cool Roof unless the roof is a character defining architectural feature. Green Building Ordinance – Proposed Compliance Options Existing Buildings 1 Roof Replacement Action required at time of roof replacement 25,000 sq ft and up Green Roof Green roof covering 2% of roof area x no. of floors (max 18% of roof area required) Cool Roof and Small Green Space Cool roof AND 0.1% x no. of floors, with a minimum of 250 ft2 of high quality multi-functional space Cool Roof and Financial Contribution Cool roof AND $17-$75/sqft of required small green area On-Site Solar LEED Gold Certification On-site solar total system area equivalent to 70% of roof area. OR Area required to meet 100% of building annual electricity consumption -ANDEnergy Program 2 Action required within 10 years of ordinance passage 50,000 sq ft and up On-Site Solar On-site solar total system area equivalent to 70% of roof area OR Area required to meet 100% of building annual electricity consumption LEED Gold Certification Energy efficiency and renewable energy options Community Solar, 15% Energy Efficiency improvement, any other measure with equivalent emission reductions COST Evaluation Apartment New Building Cost Evaluation 55,000 square feet, 5 floors, roof is 11,000 sq ft. Coverage requirement on the ballot: 30% or 3,300 sq ft. New proposed coverage requirement: 50% or 5,500 sq ft Description Cost ($) to construct the building Additional Cost ($) Percent Cost Increase Ordinance on the Ballot New proposal with new proposed coverage requirement. $6,990,500 $6,990,500 $91,911-$193,475 $63,003-$93,500 1.3%-2.8% 0.9%-1.3% ~45% reduction in average costs for the new proposal with the new proposed coverage requirement. Apartment New Building 55,000 square feet, 5 floors, roof is 11,000 sq ft. Coverage requirement on the ballot: 30% or 3,300 sq ft. New proposed coverage requirement: 50% or 5,500 sq ft Existing Requirement Proposed Requirement Industrial New Building Cost Evaluation 150,000 square feet, 1 floor, roof is 150,000 sq ft. Coverage requirement on the ballot: 10% or 15,000 sq ft. New proposed coverage requirement: 10% or 15,000 sq ft. Description Cost ($) to construct the building Additional Cost ($) Percent Cost Increase Ordinance on the Ballot New proposal with new proposed coverage requirement. $19,642,500 $19,642,500 $303,604-$1,739,897 $174,713-$255,000 1.5%-8.9% 0.9%-1.3% ~80% reduction in average costs for the new proposal with the new proposed coverage requirement. Industrial New Building Cost Evaluation 150,000 square feet, 1 floor, roof is 150,000 sq ft. Coverage requirement on the ballot: 10% or 15,000 sq ft. New proposed coverage requirement: 10% or 15,000 sq ft. Existing Requirement Proposed Requirement Retail New Building Cost Evaluation 70,000 square feet, 1 floor, roof is 70,000 sq ft. Coverage requirement on the ballot: 50%, or 35,000 sq ft. New Proposed Coverage Requirement: 10% or 7,000 Description Cost ($) to construct the building Additional Cost ($) Percent Cost Increase New proposal with new Ordinance on the Ballot proposed coverage requirement. $7,000,000 $7,000,000 $648,702-$1,107,275 $70,700-$119,000 9.3%-15.8% 1.0%-1.7% ~90% reduction in average costs for the new proposal with the new proposed coverage requirement. Retail New Building Cost Evaluation 70,000 square feet, 1 floor, roof is 70,000 sq ft. Coverage requirement on the ballot: 50%, or 35,000 sq ft. New Proposed Coverage Requirement: 10% or 7,000 Existing Requirement Proposed Requirement Office New Building Cost Evaluation 300,000 square feet, 15 floors, roof is 20,000 sq ft. Coverage requirement on the ballot: 60% or 12,000 sq ft. New Proposed Coverage Requirement: 60% or 12,000 sq ft. Description Cost ($) to construct the building Additional Cost ($) Percent Cost Increase Ordinance on the Ballot New proposal with new proposed coverage requirement. $56,007,000 $56,007,000 $275,315-$405,562 $204,000-$341,235 0.49%-0.72% 0.4%-0.6% ~20% reduction in average costs for the new proposal with the new proposed coverage requirement. Office New Building Cost Evaluation 300,000 square feet, 15 floors, roof is 6,000 sq ft. Coverage requirement on the ballot: 60% or 3,600 sq ft. New Proposed Coverage Requirement: 60% or 3,600 sq ft. Existing Requirement Proposed Requirement COST Evaluation Apartment Roof Replacement Cost Evaluation 55,000 square feet, 5 floors, roof is 11,000 sq ft. Coolsq Roof Cool Roof + small amount of Green green:Roof 3% or 330 ft & 30% of required area* Small Green Space** Conventional Roof Replacement Cost ($) $137,700 $137,700 Additional Cost ($) $52,581 $19,300 Cost Increase (%) 38% 14% Description *Green Roof on 30% of 30%, as required on the ballot. ** Require 5% of and green square footage as compared to what would have been required (a 0.1 across the board percentage x number of floors or RAR), with a minimum of 250 ft2 of high quality multi-functional space (or the minimum effective sizing necessary based on UDFCD and CCD Green Infrastructure guidelines). If more than 250 ft2 is required, then the additional space could be ornamental. Industrial Roof Replacement Cost Evaluation 150,000 square feet, 1 floor, roof is 150,000 sq ft. Green Roof 30% of required area* Cool Roof & Small Green Space** Conventional Roof Replacement Cost ($) $1,539,900 $1,539,900 Additional Cost ($) $160,589 $26,250 Cost Increase (%) 10% 2% Description *Green Roof on 30% of 20%, as required on the ballot. ** Require 5% of and green square footage as compared to what would have been required (a 0.1 across the board percentage x number of floors or RAR), with a minimum of 250 ft2 of high quality multi-functional space (or the minimum effective sizing necessary based on UDFCD and CCD Green Infrastructure guidelines). If more than 250 ft2 is required, then the additional space could be ornamental. Retail Roof Replacement 70,000 square feet, 1 floor, roof is 70,000 sq ft. Cost Evaluation Green Roof 30% of required area* Cool Roof & Small Green Space** Conventional Roof Replacement Cost ($) $769,950 $769,950 Additional Cost ($) $348,370 $22,250 Cost Increase (%) 45% 3% Description *Green Roof on 30% of 30%, as required on the ballot. ** Require 5% of and green square footage as compared to what would have been required (a 0.1 across the board percentage x number of floors or RAR), with a minimum of 250 ft2 of high quality multi-functional space (or the minimum effective sizing necessary based on UDFCD and CCD Green Infrastructure guidelines). If more than 250 ft2 is required, then the additional space could be ornamental. Office Roof Replacement 300,000 square feet, 15 floors, roof is 20,000 sq ft. Cost Evaluation Description Green Roof Cool Roof & 30% of Small Green required area* Space** Conventional Roof Replacement Cost ($) $337,500 $337,500 Additional Cost ($) $132,300 $20,855 Cost Increase (%) 39% 6% *Green Roof on 30% of 60%, as required on the ballot. ** Require 5% of and green square footage as compared to what would have been required (a 0.1 across the board percentage x number of floors or RAR), with a minimum of 250 ft2 of high quality multi-functional space (or the minimum effective sizing necessary based on UDFCD and CCD Green Infrastructure guidelines). If more than 250 ft2 is required, then the additional space could be ornamental. Cost Evaluation Energy Program for Existing Buildings Cost Benefit Analysis Challenges: Building Age, Code Baseline Building Type, Space Types (Lighting) Building Class Access, Phasing Labor, Consulting, Demolition, Disposal Unintended Issues during Retrofit No retrofit will look exactly the same, making forecasting costs and savings nearly impossible. Project Drawdown, Paul Hawken Net Present Value (NPV) Cost Evaluation Positive Value Revenues are greater than the costs Negative Value Costs are greater than the revenues Energy Program: Options with Positive NPV Cost Evaluation Industrial Apartment 300,000 160,000 NPV of Costs & Savings ($) NPV of Costs & Savings ($) 140,000 120,000 100,000 80,000 60,000 40,000 20,000 250,000 200,000 150,000 100,000 50,000 0 0 -50,000 -20,000 70% Solar* LED Lighting Retro-commissioning *Solar panels on 70% of required area Note differences in vertical scale 70% Solar* LED Lighting Retro-commissioning Energy Program: Options with Positive NPV Office Retail 350,000 700,000 300,000 600,000 NPV of Costs & Savings ($) NPV of Costs & Savings ($) Cost Evaluation 250,000 200,000 150,000 100,000 50,000 400,000 300,000 200,000 100,000 0 0 70% Solar* 500,000 LED Lighting Retro-commissioning *Solar panels on 70% of required area Note differences in vertical scale 70% Solar* LED Lighting Retro-commissioning Exisiing Buildings Cost Evaluation Appendices Cost Evaluation NPV Parameters Parameter Assumption Source Analysis Period (years) 32 (i.e. till year 2050) Discount Rate (%) 7 Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs (https://www.wbdg.org/FFC/FED/OMB/OMBCircular-A94.pdf ) Energy Escalation Rate (%) 2 Energy Escalation Rate Calculator (https://energy.gov/eere/femp/energy-escalation-rate-calculatordownload): Colorado, 1.5% Inflation, Commercial Electricity 0.098 Blended Rate ($/kWh) U.S. Energy Information Administration (https://www.eia.gov/electricity/monthly/epm_table_grapher.php? t=epmt_5_6_a ): Colorado, Commercial Energy Savings Calculated based on site energy use intensity (EUI) of DOE Commercial Reference Buildings in Denver, Post-1980 Construction. Building types used were Mid-rise Apartment, Warehouse, Stand-alone Retail, and Medium Office. 12% for LED 16% for retrocomissioning Existing Buildings: Apartment Description 70% Solar* LED Lighting Conventional Roof Replacement Cost $137,700 ($) N/A Additional Cost ($) $54,173 $85,000 Cost Increase (%) 39% Apartment Retrocommissioning 160,000 140,000 N/A N/A $3,750 N/A NPV of Costs & Savings ($) Cost Evaluation 120,000 100,000 80,000 60,000 40,000 20,000 0 NPV ($) -$4,087 $18,608 $134,393 -20,000 70% Solar* *Solar panels on 70% of required area LED Lighting Retro-commissioning Existing Buildings: Industrial Description 70% Solar* Conventional Roof Replacement Cost $1,539,900 ($) Additional Cost ($) Cost Increase (%) $162,390 11% LED Lighting N/A $255,000 N/A Industrial Retrocommissioning N/A $20,000 N/A 300,000 NPV of Costs & Savings ($) Cost Evaluation 250,000 200,000 150,000 100,000 50,000 0 -50,000 NPV ($) $65,282 *Solar panels on 70% of required area -$27,687 $283,100 70% Solar* LED Lighting Retro-commissioning Existing Buildings: Retail Description 70% Solar* Conventional Roof Replacement Cost ($) $769,950 Additional Cost ($) $323,457 Cost Increase (%) NPV ($) 42% $207,761 LED Lighting Retrocommissioning N/A N/A $119,000 N/A $125,645 $5,250 N/A $320,938 Retail 350,000 NPV of Costs & Savings ($) Cost Evaluation 300,000 250,000 200,000 150,000 100,000 50,000 0 70% Solar* *Solar panels on 70% of required area LED Lighting Retro-commissioning Existing Buildings: Office Description 70% Solar* Conventional Roof Replacement Cost ($) $337,500 Additional Cost ($) $158,203 Cost Increase (%) 47% LED Lighting Retrocommissioning N/A N/A $510,000 N/A $65,000 N/A Office 700,000 NPV of Costs & Savings ($) Cost Evaluation 600,000 500,000 400,000 300,000 200,000 100,000 0 NPV ($) $23,934 *Solar panels on 70% of required area $37,425 $664,906 70% Solar* LED Lighting Retro-commissioning PUBLIC INPUT PROCESS Dates: Noon on May 18th - any comments received by this date will be shared with the task force ahead of their meeting May 23rd. Noon on June 3. The comment period closes. The remaining comments will be sent to the task force. How to Comment: Fill out our comment form. Commenting in the form helps us group comments by topic. Comments may also be sent via email to katrina.managan@denvergov.org. Two public briefings and input sessions will be held: Friday, May 11th, 9:00 a.m. – 10:30 a.m. in the Wellington Webb Municipal Building room 4.G.2 Monday, May 14th, 9:00 a.m. – 10:30 a.m. in the Wellington Webb Municipal Building room 1.B.6