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Zero Net Energy Buildings

Brandon Hanson (author), Jonathan Rosenbloom & Christopher Duerksen (editors)

INTRODUCTION

The burning of fossil fuels is the primary source of greenhouse gas (GHG) emissions in the US.[1]  With the production of energy amounting to 28% of the United States total GHG emissions,[2] reducing the amount of energy produced through fossil fuels can have a large impact on the mitigation of GHGs.[3] This proposal seeks such reductions by establishing zero net energy requirements. Zero net energy buildings seek to produce as much energy as they use through renewable resources, typically based on annual energy use and production. Net zero energy buildings also promote more efficient energy consumption habits, as a reduction in consumption correlates directly with the production rate. Local government ordinances addressing net zero energy buildings provide for a variety of energy production types, including solar, wind, and geothermal.[4]

This proposal establishes zero net energy requirements for commercial and residential buildings. Alternative proposals can focus on creating incentives to build renewable energy sources (see Promote Renewable Energy with Incentives and Property Tax Exemptions for Renewable Energy Systems) and reduce energy demands by requiring some level of renewable energy production that is short of zero net or work towards net positive energy buildings, buildings that create more renewable energy than they use. In addition, the ordinances may be drafted to establish a set requirement for zero net energy or provide incentives to encourage zero net energy.[5]

Whether adopting zero net, net positive, or a lesser energy framework, these ordinances create incentives or establish firm requirements to build renewable energy systems and reduce energy demands. These ordinances set forth renewable energy standards for various building types, including new commercial or residential buildings or significant renovation to such buildings. The ordinances can be drafted to help local governments meet GHG reduction goals.[6] They may also work well with proposals to reduce energy demand through improved energy efficiency.[7] Solar energy is often the primary focus of these ordinances.[8]

EFFECTS

The most direct benefit stemming from zero net energy ordinances is a reduction in fossil fuels and associated GHGs that contribute to global warming.[9] Encouraging the installation of renewable energy can also have significant long-term economic benefits for those paying utility fees associated with energy.[10] By reducing reliance on utility company energy, through renewable energy sources, such as solar, net zero ordinances can decrease fees for both commercial enterprises and residential landowners.[11] The reduction of utility fees and other factors, lower operating costs, which lead lenders to be more active investors in these types of buildings.[12] The adoption of zero net energy requirements or lesser energy standards may lead to a net positive energy buildings and ordinances, creating a grid system that could one day be free from fossil fuels. Additional benefits stemming from the use of renewable energy include improved air quality, job growth, and energy security.[13]

Common thought is buildings that rely on renewable energy sources are expensive to build and burdensome, but developers in Utah have found only a 5 -10% increase in initial cost, some even claim no additional cost.[14] Even if the initial cost is more the operating costs are lower, as reliance on traditional energy sources are eliminated, and resale values are higher.[15] Making them less burdensome than buildings, without renewable energy systems.

EXAMPLES

Lancaster, CA

Lancaster, California has been a leader in requiring renewable energy.[16] After a long history of supporting solar development, Lancaster amended its building code to require that new buildings be outfitted with a solar energy system.[17] New single-family homes must have solar energy systems that can produce two watts of power for every square foot of the home.[18] This requirement can be modified if the builder provides documentation that a smaller system is able to meet the zero net energy requirements. If a developer cannot comply with the solar standards, they may be able to meet the requirements through other means.[19] Additionally, Lancaster adopted the California Energy Code, part of the California Code of Regulations, which requires most new residential buildings to have a solar ready area.[20] This area need not be outfitted with solar panels, but must have the capacity to install panels at a later date.[21] Multifamily residences must have a solar ready area of at least 15 percent of the total roof area.[22] Combined, these policies help Lancaster move toward zero net energy buildings. A process that the whole state of California is moving towards, with the plan from the California Energy Commission.[23]

To view the provision see Lancaster, Cal., Energy Code § 15.28.020 (2017).

To view the provision see Cal. Code Regs. Tit. 24 § 6-110.10 (b) (2016).

San Francisco, CA

San Francisco requires new residential buildings to be installed with solar energy systems.[24] San Francisco also requires that the type of solar collectors installed meets a minimum requirement for per foot energy production.[25] For example, the code requires photovoltaic solar panels to produce at least 10 watts per square foot of solar panels.[26] Similar to Lancaster, the San Francisco code integrates a portion of the California Code of Regulations (CCR)[27] that requires new buildings to have 15% of total roof area available for solar panels.[28]  Developers look to the CCR and identify the appropriate section based on building type, for example, multifamily apartment building. The CCR then establishes the minimum percentage of total roof area that must be ready for solar panels.[29] Then, according to the city solar requirements, the developer would install solar panels within the requisite roof area.  .

To view the provision see San Francisco, Cal., Green Building Code § 4.201.2 (2017).    

To view the provision see Cal. Code Regs. Tit. 24 § 6-110.10 (b) (2016).

ADDITIONAL EXAMPLES

Sebastopol, CA, Sebastopol City Code § 15.72 (pub. 2018) (imposes minimum solar energy requirements that allow a calculation by set minimum area or by the buildings energy needs, the minimum offset is 75% off the electrical load annually).

Scottsdale, AZ, Green Construction Code § 31-145 (l) 610.1 (2017) (lists several on site renewable energy system electric output requirements, based on individual consumption or floor space, and the international energy conservation code).

Santa Fe, NM, Santa Fe City Code § 7-4.2 (2009) (creates incentives for those cooperating with the Residential Green building code).

Santa Monica, CA, Ordinance No: 2540 CCS (2016) (requires that all new single family and multifamily residential buildings be outfitted with solar photovoltaic energy production).

Davis, CA, Municipal Code § 8.20.010-70 (2018) (requiring new single-family dwellings to install a solar photovoltaic system and maintaining sufficient roof space to expand such system).

CITATIONS

[1]Intergovernmental Panel on Climate Change, Climate Change 2014: Synthesis Report, 48-49.

[2] Environmental Protection Agency, Sources of Greenhouse Gas Emissions, epa.gov, https://perma.cc/UA9T-9VMH (last visited May 15, 2018).

[3] Id.

[4] US Dep’t of Energy, A common Definition for Zero Energy Buildings (Sep. 2015) https://perma.cc/PFT2-K3R2.

[5] Andrew E. Dessler, Introduction to Modern Climate Change, Cambridge University Press, 185-186 (2012); Pere Mir-Artigues & Pablo del Río, The Economics and Policy of Solar Photovoltaic Generation, 172-175 (2016).

[6] San Francisco Office of the Mayor, Mayor Lee Announces Bold New Target of 50 Percent Renewable Energy by 2020, sfmayor.org, https://perma.cc/XM6W-HFYT (last visited Sep. 18 2017).

[7] Boston, MA, Municipal Code § 7-2.1; Minneapolis, MN, Code of Ordinances § 549.220 (12); Columbia, MO, Code of Ordinances §§ 27-161 – 27-169.

[8] Dessler, supra note 5, at 172. See, e.g., Lancaster, CA, Energy Code §15.28.020 (c); San Francisco, CA, Environment Code §4.201.2; Sebastopol, CA, Sebastopol City Code § 15.72.

[9] Intergovernmental Panel on Climate Change, supra note 1, at 48-49.

[10] National Renewable Energy Laboratory, Dollar from Sense: The Economic Benefits of Renewable Energy, 2-3, https://perma.cc/HG5Q-DZUT (last visited May 17, 2018).

[11] Id.

[12] Mike Sheridan, Net-Zero-Energy Construction Is Becoming More Cost-Effective, Urbanland (May 3, 2018), https://perma.cc/H56G-MKX2.

[13] Solar Energy Development on Federal Lands: The Road to Consensus: Before the Subcomm. on Energy and Mineral Resources of the H. Comm. on Natural Resources, 111th Cong. 29 (2009); Mir-Artigues & Río, supra note 5, at 172-173.

[14] Erica Evans, This Utah Group Just Proved that Net Zero Energy Buildings Don’t Have to be More Expensive, Desert News Utah (June 13, 2018), https://perma.cc/27B8-665C.

[15] Jessica Dailey, An Introduction to the Cost Benefits of Green Building, Curbed University (May 7 ,2013), https://perma.cc/79JH-CSN7.

[16] Felicity Barringer, With Help from Nature, a Town Aims to Be a Solar Capital, New York Times, Apr. 2013.

[17] Lancaster, Cal., Energy Code § 15.28.020 (c) (2017).

[18] Id. at § 15.28.020 (c)(1).

[19] Id. at § 15.28.020 (d).

[20] Id. at § 15.28.010; Cal. Code Regs. Tit. 24 § 6-110.10 (b) (2016).

[21] Cal. Code Regs. Tit. 24 § 6-110.10 (b)(1).

[22] Id. at Tit. 24 § 6-110.10 (b)(1)(B).

[23] Commercial Zero Net Energy Action Plan, California Public Utilities Commission (Dec. 2017), https://perma.cc/9GM4-QHX6.

[24] San Francisco, Cal., Environment Code § 4.201.2 (2017).

[25] Id. at § 4.201.2 (c) (1).

[26] Id. at § 4.201.2 (c) (1).

[27] Id. at § 4.201.2.

[28] Cal. Code Regs. Tit. 24 § 6-110.10 (b).

[29] Id. at Tit. 24 § 6-110.10 (b)(1)(B).


Please note, although the above cited and described ordinances have been enacted, each community should ensure that newly enacted ordinances are within local authority, have not been preempted, and are consistent with state comprehensive planning laws. Also, the effects described above are based on existing examples. Those effects may or may not be replicated elsewhere. Please contact us and let us know your experience.