On the Mandatory Greening of Existing Buildings + EcoTuesday Reminder

Did  you catch that hint about possible mandatory measures to require the greening of existing buildings?

In case you missed it, the Examiner put out the word that Mayor Gavin Newsom and San Francisco Supervisor Eric Mar will introduce legislation this week which, when passed, would authorize San Francisco’s own version of an energy efficiency financing district.

Called a “green loan” plan in the article, the loan fund would allow homeowners to receive loans to make environmental improvements to their properties and then pay back the money through extra property taxes.

But you have to read that overwhelmingly positive article a little slower, to absorb the hint buried in a couple of innocent sentences several paragraphs in.

The article focuses on how the upcoming energy efficiency and renewable energy financing plan builds on momentum created by San Francisco’s mandatory green building codes, and also hints at the City’s future actions on greening existing buildings:

Newsom has already pledged to tighten those rules to apply to existing buildings. This latest green idea may provide a way to finance improvements that could soon become mandatory.

Are mandatory energy efficiency requirements really a good idea?

Professionals throughout green building construction, retrofits and public policy have been wringing their hands on the topic of mandatory energy efficiency standards for existing buildings. Many green building colleagues and supporters want mandatory measures to address the problem of owners with “energy hog” buildings, who simply ignore the impact of their wasteful operations on the community.

There are also concerns about mandatory energy efficiency measures unfairly impacting smaller or much older projects, since the owners in both cases might only accomplish the most limited actions to address energy efficiency problems. Essentially, retrofitting these buildings might be too cost prohibitive for those owners.

Finally, the real estate trade associations and other professional bodies have been trying to send tough signals against any form of mandatory anything when it comes to building operations. Fighting any type of cost or administrative burden  on owners at any opportunity.

Then there’s the flip side.

We also speak regularly with owners who introduce energy efficiency and green O&M to their existing buildings — only to have tenants blatantly ignore them. They express hope that, in a market with mandatory energy efficiency measures, they can more easily obtain tenant cooperation on O&M, plus they think they will look like heroes to their equity capital partners — who now struggle over how to assess and transmit some form of energy efficiency standards across behemoth national property portfolios run by thousands of local managers and JV operating partners.

The Green Journey Take?

While the retrofit cost concerns of small and very old properties are real, legislation can be crafted which addresses the potential energy efficiency limitations within their projects. They can, and should, get a fair deal.

As for the rest of the industry — we think that mandatory energy efficiency standards — with an appropriate, accessible, cost-effective financing mechanism — can provide real opportunity for competitive owners who “get it”, and need not be as problematic as some groups fear.

What do you think?

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Reminder

Let’s meet next week re: Green Finance for Communities, Campuses & Power

I noticed that several Green Journey readers are already signed up for my upcoming talk at EcoTuesday, next Tuesday, 28 July.

Exciting! You’ll all finally get to meet each other!

I’m talking green finance and how it’s changing our communities, flowing through our science and innovation parks and accelerating the growth of clean energy. And most importantly, how green finance trends can help our businesses and help us to help others.

Are you coming out?

I look forward to connecting with old friends and meeting a few new ones.

Most importantly –> We never accomplish anything alone. A summer cocktail hour is a great time to thank friends and colleagues who inspire us and to encourage them to continue the excellent work they do in transforming our communities and country.

Meeting Details

Date: 28 July 2009

Time: 6:30pm

Location: The W Hotel, 181 Third Street, San Francisco

Sign up here!

Save the Date: EcoTuesday on 28 July

This is just a quick note to let you know that I’ll be at EcoTuesday on Tuesday, 28 July, speaking about Galley Eco Capital’s latest initiatives, green finance trends and where we see opportunities in today’s economy.

And, yes –> we think there are indeed, opportunities in today’s market.

Here’s EcoTuesday’s overview of the event:

EcoTuesday is a forum for sustainable business leaders to come together to network, collaborate, and engage with one another in a structured environment. Each month EcoTuesday features opportunities for sustainable business leaders to network and learn about current issues from an innovative speaker and from one another.

Meeting Details

Date: 28 July 2009

Time: 6:30pm

Location: The W Hotel, 181 Third Street, San Francisco

Click here to RSVP

Give me a shout if you’re coming. Would love to see you there!