PORTLAND, OR - The city's new green building policy may cost some developers more money, but it is designed to curb climate change, improve people's health and boost the local economy, according to city officials. The policy would establish a "feebate" system that requires developers and single-family home builders to pay extra fees if they build only to current energy code. But the program would give them money for building high-performance buildings or living buildings - which create as much energy as they use.
"We have to be more diligent in our building endeavors," said Doug Shapiro, vice president of construction at Hoyt Street Properties. "The way to incentivize (green building) is a program like this. " His company's new condo building, The Metropolitan, was just certified silver in U.S. Green Building Council's Leadership in Energy and Environmental Design program.
But Portland developer David Bloom, who specializes in in-fill development, said "all they're doing is adding more regulation. " Bloom said he is a proponent of green building, but he feels that the city should give developers a break on systems development charges if they build to LEED standards.
Michael Armstrong, deputy director of the Office of Sustainable Development, said the green building policy would apply to private commercial and single-family residential construction in the city. The policy was initiated by Portland Commissioner Dan Saltzman earlier this year. The city council is expected to take up the issue later this year. The green building policy would be the first of its kind in the country.
During a recent presentation of the proposal to the planning commission, Armstrong said the new policy builds on the city's existing green building standards that, to date, have affected only city projects and those that include Portland Development Commission funding. Since 2005, the city's policy has been to meet LEED gold for all city buildings and LEED silver for PDC projects. In 2000, the city made LEED silver the minimum for its own facilities.
The feebate system would charge extra fees for buildings that do not meet LEED silver or higher standards and reward those that meet or exceed LEED gold. The fees paid by developers who do not meet high-performance standards would be paid out to those who do meet the standards. Armstrong said the standards for high-performance buildings would adhere to the LEED system, or Earth Advantage, which is a system that rates single-family homes. Armstrong said the city is still devising a system to determine the fees. "It's still a moving target," he said.
The feebate system would also be applied to single-family home construction. The exact fees are still being discussed, but Armstrong said that the city's minimum goal would be that at least 35 percent of new single-family homes built in 2010 would be Earth Advantage of LEED silver certified. If the number is less than 35 percent, he said the city would use the feebate system, which could mean higher charges for developers who meet only minimum energy code standards.
Bill Jackson, who developed the soon-to-open Mississippi Avenue Lofts, said his building, in theory, would receive a feebate of $150,000 to $200,000, if the building reaches LEED gold certification. His building has 32 loft condos and retail.
"I believe there are many developers on the commercial level who would be very motivated to do this kind of development," said Jackson. "What we would be doing is creating more jobs in the state of Oregon, enhancing our economy and reducing our carbon footprint. " He estimated the up-front costs of meeting LEED standards are 3 to 5 percent of the total construction cost.
Armstrong said Portland residents and businesses spend $1.6 billion every year on
Source: Daily Journal of Commerce