Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0166 Compare Versions

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55 2023 -- S 0166
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99 S TATE OF RHODE IS LAND
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
1515 RELATING TO PUBLIC PROPERTY AND WORKS -- THE GREEN BUILDINGS ACT
1616 Introduced By: Senators Gu, Valverde, DiMario, Euer, Mack, Miller, Murray, Lauria,
1717 and Ujifusa
1818 Date Introduced: February 16, 2023
1919 Referred To: Senate Commerce
2020
2121
2222 It is enacted by the General Assembly as follows:
2323 SECTION 1. Section 37-24-3 of the General Laws in Chapter 37-24 entitled "The Green 1
2424 Buildings Act" is hereby amended to read as follows: 2
2525 37-24-3. Definitions. 3
2626 For purposes of this chapter, the following definitions shall apply: 4
2727 (1) "Commercial building" means a building or multiple buildings on a parcel of which not 5
2828 less than fifty percent (50%) of the gross floor area, including hallways or other common space, 6
2929 but excluding parking, is used for commercial, retail, office, professional, educational or other 7
3030 nonresidential purposes, or any grouping of commercial buildings designated by the department or 8
3131 office as an appropriate reporting unit for the purposes of this section; provided, however, that 9
3232 "commercial building " shall not include a building owned or leased by a municipal or state agency. 10
3333 (1)(2) “Construction” means the process of building, altering, repairing, improving, or 11
3434 demolishing forty percent (40%) or more of any public structures, public buildings, public real 12
3535 property or other public improvements of any kind to any public structures, public buildings or 13
3636 public real property. 14
3737 (2)(3) “Department” means the department of administration. 15
3838 (4) "Energy " means electricity, natural gas, steam, hot or chilled water, heating oil, 16
3939 propane or other products designated by the office used for heating, cooling, lighting, or water 17
4040 heating, or for powering or fueling other end uses. 18
4141 (5) "Energy performance rating or assessment score" means a score assigned to a building 19
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4545 based on how efficiently it uses energy relative to other buildings of the same type. The office shall 1
4646 promulgate regulations to establish the scoring system. 2
4747 (6) "Energy use benchmarking tool " means the ENERGY STAR Portfolio Manager, an 3
4848 online energy use benchmarking tool used by the United States Environmental Protection Agency 4
4949 for reporting and managing the energy performance, water efficiency and greenhouse gas emissions 5
5050 of building, or a tool capable of: 6
5151 (i) Performing all the functions relevant to compliance with this section; 7
5252 (ii) Allowing for reporting by third parties, including, but not limited to, gas distribution 8
5353 and electric distribution companies; and 9
5454 (iii) Exchanging information and data with the ENERGY STAR Portfolio Manager. 10
5555 (3)(7) “Equivalent standard” means a high-performance green building standard, other than 11
5656 LEED, LEED for Neighborhood Development, and SITES, that provides an independent, third-12
5757 party verification and certification of a rating system or measurement tool, that, when used, leads 13
5858 to outcomes equivalent to, LEED, LEED for Neighborhood Development, and SITES outcomes, 14
5959 in terms of green building, green infrastructure, and green site performance; current accepted 15
6060 equivalent standards include green globes, Northeast collaborative high-performance schools 16
6161 protocol; or other equivalent high-performance green building, green infrastructure, and green site 17
6262 standards accepted by the department. 18
6363 (8) "kBTU" means one thousand (1,000) British thermal units. 19
6464 (9) "Large building " means a building that meets any of the following criteria: 20
6565 (i) Buildings owned or leased by a municipality, state agency, or other government or 21
6666 quasi-government entity consisting of not less than ten thousand square feet (10,000 sq. ft.) of gross 22
6767 floor area; 23
6868 (ii) As of January 1, 2023, residential or commercial buildings consisting of not less than 24
6969 twenty five thousand square feet (25,000 sq. ft.) of gross floor area; 25
7070 (iii) As of January 1, 2026, residential or commercial buildings consisting of not less than 26
7171 twenty thousand square feet (20,000 sq. ft.) of gross floor area; or 27
7272 (4) As of January 1, 2029, residential or commercial buildings consisting of not less than 28
7373 fifteen thousand square feet (15,000 sq. ft.) of gross floor area. 29
7474 (4)(10) “LEED” also, “LEED for Neighborhood Development, and SITES certified 30
7575 standard” means the current version of the U.S. Green Building Council Leadership in Energy and 31
7676 Environmental Design (LEED) green building rating standard referred to as LEED, LEED for 32
7777 Neighborhood Development, and SITES certified. SITES means the U.S. Green Building Council’s 33
7878 SITES — The Sustainable SITES Initiative. 34
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8282 (11) "Office " means the office of energy resources. 1
8383 (12) "Owner " means the owner of record of a building, or a designated agent thereof, 2
8484 including, but not limited to, the association or organization of unit owners responsible for 3
8585 management in the case of a condominium, the board of directors in the case of a cooperative 4
8686 apartment corporation, and the net lessee in the case of a building subject to a net lease with a term 5
8787 of not less than forty-nine (49) years, inclusive of all renewal options. 6
8888 (5)(13) “Public agency” means every state or municipal office, board, commission, 7
8989 committee, bureau, department, or public institution of education, or any political subdivision 8
9090 thereof. 9
9191 (6)(14) “Public facility” means any public institution, public facility, public equipment, or 10
9292 any physical asset owned, including its public real-property site, leased or controlled in whole or 11
9393 in part by this state, a public agency, a municipality or a political subdivision, that is for public or 12
9494 government use. 13
9595 (7)(15) “Public major facility project” means: 14
9696 (i) A public facility building construction project larger than ten thousand (10,000) gross 15
9797 square feet of occupied or conditioned space, and its public real-property site; or 16
9898 (ii) A public facility building renovation project larger than ten thousand (10,000) gross 17
9999 square feet of occupied or conditioned space, and its public real-property site. 18
100100 (16) "Residential building " means a building or multiple buildings on a parcel of which 19
101101 not less than fifty percent (50%) of the gross floor area, including hallways and other common 20
102102 space serving residents, but excluding parking, is used for dwelling purposes, or any grouping of 21
103103 residential buildings designated by the office or a municipality as an appropriate reporting unit for 22
104104 the purposes of this chapter; provided, however, that "residential building " shall not include a 23
105105 building owned or leased by a municipal or state agency. 24
106106 (17) "Tenant" means any tenant, tenant-stockholder of a cooperative apartment 25
107107 corporation, or condominium unit owner. 26
108108 SECTION 2. Chapter 37-24 of the General Laws entitled "The Green Buildings Act" is 27
109109 hereby amended by adding thereto the following section: 28
110110 37-24-7. Building performance standards act. 29
111111 (a) For large buildings, the office shall undertake energy use benchmarking to determine 30
112112 whether each building utilizes more or less energy, and emits more or less greenhouse gases, than 31
113113 buildings of comparable size, occupancies and uses, and to inform a statewide analysis of energy 32
114114 use trends and opportunities to increase energy efficiency and reduce greenhouse gas emissions. 33
115115 To conduct the benchmarking, the office shall create, procure, or designate an energy use 34
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119119 benchmarking tool and shall provide technical support and assistance on the use of the 1
120120 benchmarking tool to the owners of buildings subject to this section. 2
121121 (b)(1) To administer this section, the office may designate subcategories within each 3
122122 building type and occupancy, and may establish different reporting requirements and energy 4
123123 performance standards for each subcategory. In establishing reporting requirements and energy 5
124124 performance standards, the office may consider whether tenant-occupied units or spaces are 6
125125 separately metered. 7
126126 (2) Not later than January 31 of each year, beginning in 2024, the owner of each large 8
127127 building shall report their energy use for the prior calendar year to the office. The office shall 9
128128 provide a paper form or online portal for the submission of this information. The office shall 10
129129 determine what information is necessary to request, and will request, at a minimum, the information 11
130130 listed in subsection (c) of this section. The owner of a building subject to this section may authorize 12
131131 a gas or electric distribution company or other third party to report building-specific data to the 13
132132 office, and the gas or electric distribution company shall report building-specific data to the office 14
133133 upon such authorization; provided, however, that such authorization shall not relieve an owner from 15
134134 compliance with this section. 16
135135 (3) Annually, an owner of a large building with separately-metered and tenant-occupied 17
136136 units or spaces shall request from each tenant of the building all information necessary to comply 18
137137 with the requirements of subsection (b)(2) of this section and each tenant shall report the required 19
138138 information to the owner. The owner of a large building may bypass individual authorization and 20
139139 request the electric and gas distribution companies to provide the aggregate energy consumption of 21
140140 all meters in the building, including tenant-occupied units and separately-metered units, and the 22
141141 electric and gas distribution companies shall provide the data to the building owner, separated by 23
142142 month and consumption by source. Failure of an owner to report energy use information to the 24
143143 office shall not impose liability on a tenant. 25
144144 (4) The office shall establish a deadline extension or hardship waiver process for owners 26
145145 who, in the judgment of the office, demonstrate cause for a deadline extension or hardship waiver. 27
146146 (5) If an occupied building subject to the requirements of this section is transferred, the 28
147147 buyer shall make reasonable efforts to report energy use information for the building for the entire 29
148148 calendar year, if practicable. 30
149149 (c)(1) Annually, not later than March 31, the office shall make available on its executive 31
150150 climate change website and dashboard required by § 42-6.2-3(13) energy use information and data 32
151151 for the preceding calendar year for each large building, on a building-by-building basis. For each 33
152152 building, the information made available shall include, but not be limited to: 34
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156156 (i) The address of the building and the municipality in which the building is located; 1
157157 (ii) The owner of the building; 2
158158 (iii) The building’s total energy use in kBTU, total greenhouse gas emissions in pounds of 3
159159 carbon dioxide equivalent, total square footage, energy intensity in kBTU per square foot and 4
160160 greenhouse gas emissions per square foot in pounds of carbon dioxide equivalent per square foot; 5
161161 (iv) The breakdown of the building’s energy use by electricity, gas, steam and other 6
162162 sources; and 7
163163 (v) An energy performance rating or assessment score. 8
164164 (2) The office shall utilize such practices as are necessary to prevent the public disclosure 9
165165 of personal information regarding owners and tenants, and maintain a quality assurance process to 10
166166 improve the accuracy and completeness of the available information. The office shall provide 11
167167 owners with the opportunity to submit contextual information related to energy use in their 12
168168 buildings and shall disclose such information on its website upon request by the owner. 13
169169 (d) The office shall make available to a regional planning agency, municipality or other 14
170170 public agency requesting such information any data set forth in this section. 15
171171 (e) The office shall prepare an annual comprehensive report on the energy performance of 16
172172 large buildings utilizing the information and data collected pursuant to this section. The report shall 17
173173 include, but not be limited to, an analysis of energy performance, greenhouse gas emissions, and 18
174174 energy sources by building size, occupancy, and use. The report shall also include, when available, 19
175175 energy performance and greenhouse gas emissions over time. The report shall be posted on the 20
176176 office’s website and sent to the house committee on environment and natural resources and the 21
177177 senate committee on environment and agriculture not later than March 31. 22
178178 (f) On the basis of the comprehensive reports prepared by the office pursuant to subsection 23
179179 (e) of this section and other information and data as deemed necessary by the commissioner of 24
180180 energy resources, the commissioner shall conduct an annual review of trends in the energy 25
181181 performance of large buildings and recommend changes to state laws, regulations, policies, and 26
182182 programs to achieve further energy reductions. 27
183183 (g) The office shall ensure that electric distribution companies provide owners of buildings 28
184184 subject to this section with up-to-date information about energy efficiency opportunities or actions 29
185185 available to increase energy efficiency, including incentives in utility-administered or other energy 30
186186 efficiency programs and changes in energy assessment technology. The office shall prioritize those 31
187187 buildings that have not demonstrated year-to-year improvement in their energy performance rating 32
188188 or assessment score. 33
189189 (h)(1) The office shall establish energy performance standards for each building type. The 34
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193193 office shall establish these standards on the following schedule: 1
194194 (i) Buildings owned or leased by a municipality, state agency, or other government or 2
195195 quasi-government entity consisting of not less than ten thousand square feet (10,000 sq. ft.) of gross 3
196196 floor area, and residential or commercial buildings consisting of not less than twenty-five thousand 4
197197 square feet (25,000 sq. ft.) of gross floor area: no later than December 31, 2024, and every five (5) 5
198198 years thereafter; 6
199199 (ii) Residential or commercial buildings consisting of not less than twenty thousand square 7
200200 feet (20,000 sq. ft.) of gross floor area: no later than December 31, 2027, and every five (5) years 8
201201 thereafter; and 9
202202 (iii) Residential or commercial buildings consisting of not less than fifteen thousand square 10
203203 feet (15,000 sq. ft.) of gross floor area: no later than December 31, 2030, and every five (5) years 11
204204 thereafter. 12
205205 (2) The office shall establish reporting and data verification requirements for each five (5) 13
206206 year compliance cycle. These standards shall apply only to large buildings. 14
207207 (3) In developing energy performance standards, the office shall maximize opportunities 15
208208 for the state to achieve the requirements of § 42-6.2-2, as well as other laws and policies related to 16
209209 climate change, emissions reductions, energy efficiency, and renewable energy. 17
210210 (4) The office may establish campus-wide energy performance standards for post-18
211211 secondary educational institutions and hospitals with multiple buildings in a single location that are 19
212212 owned by a single entity; provided that, the development of any standard by the office shall be 20
213213 based upon an analysis of the existing building efficiency of each campus and the compliance 21
214214 pathways shall achieve savings comparable to those outlined in subsection (i) of this section. 22
215215 (5) The office shall set energy performance standards that are at least as strong as the 23
216216 median energy performance rating or assessment score of large buildings of each building type. 24
217217 (i)(1) For the initial five (5) year compliance cycle, owners of large buildings with an 25
218218 energy performance rating or assessment score lower than the energy performance standard 26
219219 established by the office shall satisfy one of the following compliance pathways: 27
220220 (i) An energy performance pathway, which shall require a building to demonstrate a 28
221221 decrease in normalized site energy use averaged over the last two (2) years of the five (5) year 29
222222 compliance cycle, as compared to the normalized site energy use averaged over the last two (2) 30
223223 years preceding the first year of the five (5) year compliance cycle; or 31
224224 (ii) An emissions performance pathway, which shall require a building to demonstrate a 32
225225 decrease in normalized site greenhouse gas emissions over the last two (2) years of the five (5) year 33
226226 compliance cycle, as compared to the normalized site greenhouse gas emissions averaged over the 34
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230230 two (2) years preceding the first year of the five (5) year compliance cycle; provided that, switching 1
231231 from oil or another fuel to natural gas for space heating or water heating shall not count toward a 2
232232 building’s compliance with this pathway. 3
233233 (iii) The office shall require large buildings subject to the requirements of this subsection 4
234234 to reduce normalized site energy use or greenhouse gas emissions by at least twenty percent (20%) 5
235235 over the initial five (5) year compliance cycle, and may require greater reductions if the office finds 6
236236 that it is feasible to do so and will help achieve the state’s enforceable greenhouse gas emissions 7
237237 targets under § 42-6.2-2. The office shall hold at least one public hearing before setting the required 8
238238 reduction in normalized site energy use or greenhouse gas emissions over the initial five (5) year 9
239239 compliance cycle. 10
240240 (2) For subsequent five (5) year compliance cycles, the office shall establish energy 11
241241 performance standards and compliance pathways designed to achieve emissions and energy 12
242242 reduction targets; provided that, the compliance pathways shall maximize the potential to reduce 13
243243 greenhouse gas emissions from large buildings by at least eighty percent (80%) by 2040, compared 14
244244 to the baseline level of emissions in 2023, and to achieve the state greenhouse gas emissions limits 15
245245 under the state’s enforceable greenhouse gas emissions targets under § 42-6.2-2. 16
246246 (j) The office shall establish exemption criteria for large buildings to delay compliance 17
247247 with the energy performance standards for up to three (3) years if the owner demonstrates, to the 18
248248 satisfaction of the office, financial distress, change of ownership, vacancy, major renovation, 19
249249 pending demolition, or other acceptable circumstances determined by the office by regulation. 20
250250 (k) The office shall coordinate with utility companies and the public utilities commission 21
251251 to establish incentive and financial assistance programs for owners to meet energy performance 22
252252 standards. 23
253253 (l)(1) Municipalities may establish and enforce energy use benchmarking programs or 24
254254 energy performance standards for buildings, in lieu of the programs and standards established by 25
255255 the office; provided that, the following conditions are met: 26
256256 (i) The municipality uses an energy use benchmarking tool that collects information similar 27
257257 to the energy use benchmarking tool used by the state; 28
258258 (ii) Annually, not later than July 1, the municipality collects and forwards to the office, on 29
259259 a building-by-building basis, the required energy use information from the previous calendar year, 30
260260 using standardized units of measure and formats established by the office; and 31
261261 (iii) Energy performance standards established by the municipality result in reductions in 32
262262 energy use and greenhouse gas emissions that are comparable to or greater than the standards 33
263263 established by the office. Municipalities may set lower gross floor area thresholds for buildings 34
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267267 subject to their programs and standards. 1
268268 (2) The office shall review requests from municipalities to establish their own programs, 2
269269 and the office may deny requests if it is not satisfied that the conditions in subsection (1) of this 3
270270 section are met. The office shall evaluate any municipal programs established under this subsection 4
271271 at least once every five (5) years, and may withdraw its approval if municipal programs fail to 5
272272 comply with those conditions. 6
273273 (3) The office shall include data from all municipalities, including municipalities with their 7
274274 own energy use benchmarking programs or energy performance standards, in the website 8
275275 designated in subsection (c) of this section, in the report required under subsection (e) of this 9
276276 section, and in the review required under subsection (f) of this section. 10
277277 (m)(1) Owners of large buildings may pay an alternative compliance payment if their 11
278278 buildings fail to satisfy one of the compliance pathways established in subsection (i) of this section. 12
279279 The amount of the alternative compliance payment shall be set by the office and shall be assessed 13
280280 per metric ton of carbon dioxide equivalent emissions, by which the building falls short of meeting 14
281281 the requirements of subsection (h) of this section. The alternative compliance payment shall be no 15
282282 less than two hundred twenty-five dollars ($225) per metric ton of carbon dioxide equivalent 16
283283 emissions, and shall be set at an amount ensuring that it is more cost-effective for the owners of the 17
284284 vast majority of large buildings to make the improvements necessary to meet the compliance 18
285285 pathways rather than pay the alternative compliance payment. The office shall revise the amount 19
286286 of the alternative compliance payment at least once every five (5) years. The alternative compliance 20
287287 payment shall be assessed in the final year of the five (5) year compliance period and in every 21
288288 subsequent year that a building fails to satisfy one of the compliance pathways. 22
289289 (2) Owners of large buildings failing to comply with the energy use reporting and 23
290290 benchmarking requirements of this section or knowingly providing false or incomplete information 24
291291 to the office shall be subject to a fine. Owners of large buildings failing to satisfy one of the 25
292292 compliance pathways established in subsection (i) of this section who do not pay an alternative 26
293293 compliance payment to the office, as described in subsection (1) of this section, shall also be subject 27
294294 to a fine. Fines shall be determined by the office and shall be assessed per day that a building owner 28
295295 is not in compliance with the requirements of this section. Fines shall be no less than five hundred 29
296296 dollars ($500) per day of noncompliance for buildings consisting of not less than twenty-five 30
297297 thousand square feet (25,000 sq. ft.) of gross floor area, three hundred fifty dollars( $350) per day 31
298298 of noncompliance for buildings consisting of not less than twenty thousand square feet (20,000 sq. 32
299299 ft.) and not greater than twenty-four thousand nine hundred ninety-nine square feet (24,999 sq. ft.) 33
300300 of gross floor area, and two hundred dollars ($200) per day of noncompliance for buildings 34
301301
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304304 consisting of less than twenty thousand square feet (20,000 sq. ft.) of gross floor area. The office 1
305305 may set different levels of fines for different violations of this section. 2
306306 (3) Alternative compliance payments and fines collected by the office shall be deposited 3
307307 into a separate account established by the office. Any funds collected shall be used first to pay for 4
308308 the costs incurred by the office in administering this section, and any remaining funds shall be used 5
309309 to further the objectives of this section, including deep energy retrofits of low-income and 6
310310 moderate-income housing. 7
311311 (4) The office shall take all reasonable steps to inform the owners of large buildings of their 8
312312 obligations under this section. 9
313313 (n) In municipalities that establish their own energy use benchmarking programs or energy 10
314314 performance standards, the municipality and not the office shall assess any alternative compliance 11
315315 payments or fines. Alternative compliance payments and fines assessed by municipalities shall be 12
316316 no less than those described under subsection (m) of this section. Funds collected through 13
317317 alternative compliance payments and fines assessed by a municipality shall be retained by the 14
318318 municipality. 15
319319 SECTION 3. This act shall take effect upon passage. 16
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326326 EXPLANATION
327327 BY THE LEGISLATIVE COUNCIL
328328 OF
329329 A N A C T
330330 RELATING TO PUBLIC PROPERTY AND WORKS -- THE GREEN BUILDINGS ACT
331331 ***
332332 This act would create building energy performance standards based on the size of 1
333333 buildings, to achieve, by way of benchmarking and reporting, a statewide analysis of energy use 2
334334 and strategies to increase energy efficiency. 3
335335 This act would take effect upon passage. 4
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