Florida Chambers Environmental Permitting

Energy & Climate Change: Growth

Management & Environmental

Policy Ramifications

July 23, 2009

HB 697

Enactment, Rules

& Directions

Panel & Topics 1st Session:Dennis E. Gilkey – Gilkey Organization, LLCFacilitator & Overview

Overview, Observations, Trends. Summary of Program for Resource Efficient Communities Protocol for Monetizing energy elements for master planned communities

Jim Murley –Florida Atlantic University State Energy and Climate Change Commission – direction, CO2 issues, efficiency. Overview of SFRPC Climate Change and Sea Level Rise EAR Process

Erin Deady –Lewis Longman & Walker, P.A.Local Government Implementation, building code requirements,

green building incentives, certification programs, greenwashing

Panel & Topics 2nd Session:

Vinette Godelia – Hopping Greens & Sams HB 697 implementation , cluster development, urban infill,

reducing VMT

Michael Tammaro – Florida Power & Light Energy industry response, nuclear/ environmental issues, energy conservation and energy devices

Ernie Cox – Family Lands Remembered, LLC Babcock solar project, rural/greenfield development,

energy, VMT. Costs and opportunities of energy requirements

Surrounded by foreign officialsbut no one from the Bush administration, Gov. Charlie Crist warned Thursday that global warming poses such a dire threat to Floridians that the state must take immediate, dramatic and unilateral action.The first phase of that initiative begins today as Crist signs unprecedented orders intended to help reduce pollution, slow global warming and position the state as a national model—even as the federal government remains on the sidelines.

THE ENVIRONMENT

Crist sets Florida on a green pathFlorida will act forcefully on its own to counter global warming,Gov. Crist said as he prepared to sign a series of pollution-fightingorders.

BY MARTIN [email protected]

Posted on Fri, Jul. 13, 2007

The Florida Legislature enacted HB 697 in the 2008 session. HB 697 establishes new local planning requirements relating to energy efficient land use patterns, transportation strategies to address greenhouse gas reductions, energy conservation, and energy efficient housing. These new requirements became effective on July 1, 2008. Implementation of these requirements presents the Department and local governments with new challenges and opportunities.

The Implementation of House Bill 697

Summary Elements of HB 697

• Energy efficient land use patterns• Greenhouse gas reduction strategies –

transportation buildings• Energy conservation• Energy efficiency in design/construction• Use of renewable energy sources

General Observations HB 697

• The basis of HB 697 is valid and necessary in addressing Global Warming, CO2 emissions energy and transportation

• The mobility fee for transportation impacts is a good approach.

• Mixed-use development is necessary – and is already happening.

• Compact Development is also necessary – and is already happening

• There will still be development in the green fields and suburbs, but higher net densities, and a greater mix of uses.

Commuting- Trends & Evaluation of Work Access Modes

• Driving alone has risen from a 1980 market share of 66 percent to the present 77 percent.

• Transit’s share of work trips has fallen from 6.3 percent to 4.9 percent between 1980 and 2006.

• The walk share of work trips has been falling, a market share loss from 5.7 percent to 2.9 percent.

The Information Technology & Innovation Foundation, Jan. 2009

Telecommuting

Telecommuting (working at home) has

increased more rapidly than other

methods of travel to work (such as

driving, car pools and public transit.)


Mass Transit

• Mass transit has the longest average travel times of any major commute mode.

• Subsidies accounted for 77 percent of transit capital and operating expenditures.


Population Rank

Metropolitan Area Car Alone Car Pool Mass

Transit WalkWork

at home

1 New York 50.6% 7.5% 29.9% 6.1% 3.7%10 Detroit 84.9% 8.5% 1.4% 1.5% 2.8%12 San Francisco 63.1% 10.5% 13.6% 4.1% 5.8%

14 Riverside-San Bernardino 75.6% 15.5% 1.5% 1.8% 4.2%

7 Miami 78.4% 10.1% 3.9% 1.6% 3.9%

19 Tampa- St. Petersburg 80.5% 9.6% 1.4% 1.8% 4.3%

27 Orlando 79.5% 10.8% 1.9% 1.4% 4.4%

40 Jacksonville 79.6% 12.0% 1.2% 1.8% 3.7%

Principal Commuting Modes by Metropolitan Area over 1,000,000 population: 2006

The Information Technology & Innovation Foundation Jan. 2009

FLORIDA

TOP

Concerns/Issues HB 697

• Lower vehicle miles traveled cannot be put totally on the backs of the new growth.

• Government needs to do its part, not just by regulation, but also by providing appropriate infrastructure.

• Safety is still the number one issue for people selecting where they want to live.

Concerns/Issues

• Need to address price, including land and infrastructure, of infill and density.

• People want environment, open space- not all or even the majority want to live in an urban setting

• Need to also recognize that there are residential market forces. Can’t force the market.

Every 8 Seconds: American Housing as Boomers Turn 60

• The vast majority of older boomers want to remain in as single-family detached home, but that amount is reducing from previous surveys.

• The desire for a semi-detached and multi-unit buildings stands at 26% among boom-fluentials (over $100K family income).

• Boomers are suburbanites and they plan to stay suburban.

• Almost as many as 67% want to live in the suburbs in the future.

• 16% want to live in an urban community when they retire, suggesting little if any movement to the cities.

Source: American Housing Conference/Hanley Wood (2006)

Every 8 Seconds: American Housing as Boomers Turn 60

• 51% want to move to a better climate• Green features and products and

services that make homes more energy efficient are important to boomers.

• A home designed for energy efficiently is hot (2/3 prefer this.)

• Living close to the great outdoors (over half prefer this.)

• An outdoor living community is desired.• A green community appeals to their

social conscience.

Source: American Housing Conference/Hanley Wood (2006)

Economics – jobs, income

• Need new economic engines for Florida

• This can’t just be about density and where people live; it must also be about what types of jobs they have and where those jobs are located

• “Gen Y” may be our targeted consumer to make a significant impact

Possible Unintended Consequences

• Higher home prices• Higher costs to businesses• Pulling up the welcome mat for people

wanting to move to Florida• What about sea level rise? Where should

density occur? Possibly not best in areas below a certain elevation like 7 or 8 feet above sea level

• Will this trigger the proliferation of 5 and 10 acre lots (by rights) throughout the state?

Implementation Protocol for

Monetizing Energy Efficiency in

Resource Efficient Communities

Implementation Protocol for Monetizing Energy Efficiency in Resource Efficient Communities

A collaborative project spearheaded by

UF’s Program for Resource Efficient

Communities. A written model legal and

implementation framework for the

development of energy efficient master

planned communities in Florida.


• Objectives:– Promote the adoption of best design, construction, and management

practices that measurable increase energy efficiency in new residential community developments.

– Create a unique written field guide or resource for landowners/developers in Florida to use to entitle, structure, finance and develop residential and mixes use communities that:• Conserve energy- reducing carbon emissions• Limit developer exposure to currently contemplated or future

regulatory requirements• Create and monetize innovative revenue streams for the developer

and/or community


• Incorporating alterative energy and energy management components into the communities using progressive financing and energy management strategies that benefit the residents, drive revenue to the developers and advance the carbon reduction goals and/or requirements of the federal, state and local governments

• Sponsored by landowners/developers in Florida, technology companies and grant monies

• Complete the Project and provide a written deliverable to the Sponsors by end of 2009


• Chapter 1 - Addressing Emerging Comprehensive Planning Issues:

– Implications of State Mandated Local Government Requirements for Energy Efficient Land Use Patterns, Greenhouse Gas Reduction Strategies and Energy Efficiency Requirements per HB 697

– Carbon Footprinting and Methodology to Establish the Baseline and Demonstrate Compliance

– Model Local Government Comprehensive Plan Goals, Objective and Policies for HB 697 Compliance


• Chapter 2 - Development of Regional Impact (DRI)

Development Order Considerations

• Chapter 3 - Development Agreement Considerations

– Establish Manageable Carbon Reduction and Efficiency Objectives

– Establish Foundation for “Additionality” for Creation of Carbon Credits

– Compliance with Local Carbon Reduction or Energy Efficiency

Requirements

– Establishing Predicate for Special District Financing of Energy

Improvements


• Chapter 4 - Project Governance Controls

– Mandating Construction and Design Standards to Maximize

Performance

– Establishing Mandatory Builder and Homeowner Participation

Requirements

– Mandatory Easement Dedication Requirements

– Measurement and Verification Standards and Protocol

– Monitoring and Enforcement

– Data Collection and Display Right


• Chapter 5 - Reserving and Monetizing Carbon Credit Rights

– Carbon as Property Rights v. Contractual Interest

– Carbon Rights Reservation Mechanisms

– Purchaser and Lessee Disclosure Issues

– Lender, Debtor and Title Issues

– Protocols for Creating Market Ready Credits

– Aggregating and Selling the Carbon Credits


• Chapter 6 - Reserving and Monetizing Renewable

Energy Credits (RECs)

– Reservation Mechanisms (Covenants, Deed

Reservations, Contracts

– Contracts for Sale

– Disclosure Issues


• Chapter 7 - Progressive Alternative Energy Financing

Options

– Community Development Districts and Ch. 189 Districts as

a Vehicle for Tax Free Financing

– Solar Assessment District Variants

– Power Purchase Agreements

– Federal Tax Code Considerations and Strategies


• Chapter 8 - Home Site Easement Requirements

– Rooftop Easements

– Access and Maintenance Easements

– Insurance Issues: Property and Installer Liability

• Chapter 9 - Capturing Federal and Other Tax Credits


• Chapter 10 - Contracting with Energy Management

Companies and ESCOs

– Monetize Demand Side Management

– Monetize Supply Side Management

– Public Utility Benefits


• Chapter 11 - Community Owned Energy Infrastructure

– Common Area Alternative Energy Systems

– Evaluating Micro Grid Opportunities and Issues

– Excluding Other Providers – Platting and other Exclusive Use

Considerations

• Chapter 12 - Implementation Issues and Considerations

with Using Third Party Rating Systems

Thank You!

July 23, 2009

Dennis GilkeyCEO & MANAGING PRINCIPAL