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Incentives Support Energy-Efficient New Construction Programs Focus on Reducing Peak Electricity Demand
April, 2008
By Barbara Carss
Two new incentive programs to support energy-efficient design and construction represent a welcome extra perk for developers and building owners.
"I'd say that none of the developers that I can think of are making decisions about energy efficiency based on any of the rebate programs," observes Martin Blake, Vice President, Project Implementation, with The Daniels Corporation, one of the key private sector players in the City of Toronto's Regent Park redevelopment project. "But, yes, we are glad that they're out there and, yes, we're using them as best we can."
The City of Toronto's Better Buildings Partnership (BBP) New Construction Program will now provide up to $350 per kilowatt (kW) saved in new commercial, industrial and multi-residential buildings, while the High Performance New Construction (HPNC) Program, which applies in all other areas of the province, offers incentives for the developers and architects of new commercial, industrial, multi-residential and institutional buildings that deliver better energy efficiency than the standards set in Canada's Model National Energy Code for Buildings (MNEBC).
Both incentive programs will rely on modeling rather than post-construction measurement and verification to determine the achieved energy savings. Projects must be completed by December 2012 to qualify.
Funding for both programs comes from the Ontario Power Authority as part of its mandate to procure conservation and demand management (CDM) and push for 6,300 megawatts (MW) of electricity conservation by 2025. Although the two programs are similar in targeting new construction and major renovations, the incentives will be distributed somewhat differently in Toronto versus other areas of the province.
OUTSIDE TORONTO
The HPNC program, to be delivered by Enbridge Gas Distribution, offers stepped-up incentives based on the degree of energy performance attained. It also offers incentives for the architects designing energy-efficient buildings.
Building owners/developers can receive incentives ranging from $250 per kilowatt (kW) saved in buildings that outperform the MNECB by 25% to $400/kW for buildings that outperform the MNECB by 50% or more. Architects are eligible for $50/kW for designs that achieve 25 to 50% better energy efficiency than MNECB standards and $100/kW for more than 50% improved energy efficiency.
"It's an interesting program because by targeting architects, it's targeting passive measures to save energy," observes Daniel Gosselin, an engineer with Stantec Consulting Ltd. That includes design configuration and building envelope considerations to maximize daylighting, curb thermal heat loads and reduce demand on mechanical and electrical systems.
He also sees the program's emphasis on reducing peak electrical demand as a intriguing design challenge beyond other incentive programs - such as the Commercial Buildings Incentive Program (CBIP) formerly offered by Natural Resources Canada - that also use the MNECB as a benchmark.
"A lot of the times when we're achieving 25% better [than MNECB standards], we're looking at all energy consumption, which is a combination of electricity and gas. 25% better electricity is a little bit trickier," Gosselin says. "Lighting has a big impact on that. Good efficient lighting design requires a little more thought."
WITHIN TORONTO
Meanwhile, incentives offered through Toronto's Better Buildings Partnership are part of a City-led initiative to reduce electricity consumption by 90 MW within public buildings, multi-residential housing and new construction by 2010. (Occurring in tandem with BOMA Toronto's CDM program aimed at saving 150 MW within the commercial building sector and Toronto Hydro's program to save 90 MW among residential and small business customers.)
The BBP New Construction incentive uses the base requirements of the Ontario Building Code as the benchmark - providing up to $350 per peak kW or 40 cents per kilowatt-hour (kWh) of savings for new buildings that outperform the OBC standards. A design assistance incentive of up to $7,000 is also available to help cover energy simulation costs.
The Regent Park redevelopment project will be one of the earliest beneficiaries of the program. The innovative replacement/revitalization strategy for the aging and structurally deteriorating subsidized housing community involves developing new ownership housing on the site, which will help to cover the capital costs of new affordable housing. Toronto Community Housing also intends to secure long-term operating savings in new buildings that will be dramatically more energy-efficient than those they are replacing.
All buildings in what will eventually be a mixed-use, mix-income neighbourhood with about 12,500 residents are designed to achieve LEED (Leadership in Energy and Environmental Design) Gold status and 40% better energy efficiency than MNECB standards. The Better Buildings Partnership is promoting The Daniels Corporation's 293-unit condominium tower at Dundas and Parliament Streets, which is slated for completion in the spring of 2009, as the first test case for the new construction incentive.
"We are supporting it and we are glad to be a part of it, but we made the decision to go to LEED Gold without any of these incentive programs being in place," Blake says. "The rebates are useful when we are trying to improve the economics for the homeowner."
REWARDING COMMITMENT
A growing number of developers are building to LEED and/or ENERGY STAR standards, but they are still a minority. Incentive programs reward proactive developers and investors, but don't necessarily draw others off the sidelines. "The owners who are already doing it are just going to have more help to do it, and maybe it's giving them the opportunity to stretch their budgets and go a little bit further," Gosselin says.
"When it comes to conservation, the programs are great, but what we really need to do is focus on the Ontario Building Code," Blake suggests. "If the Building Code dictates what can and can't be done, the entire building community has to do that."
For more information about the High Performance New Construction Program, call 1-888-672-4762 or see the web site at www.hpnc.ca. For more information about Toronto's Better Building Partnership New Construction Program, see the web site at www.toronto.ca/energy.
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