In late July, The Boston Globe released an article in the Magazine Section discussing the trend for energy-efficient upgrades in the real estate market. The article, “Will green improvements boost your home’s value?” addressed the issue that unlike traditional renovations, green renovations don’t always get translated into dollars. Although lowering one's energy bill is an attractive option, it may come with a cost that most homeowners and buyers are not quick to make. In addition, the average homeowner may not have correct knowledge about the value of their green renovation projects, making green education an even greater necessity for evaluating their home.
Our very own, Craig Foley, chief of energy solutions at RE/Max Lending Edge, was featured in this article, highlighting his Greater Boston energy study on homes. Craig studied about 4,600 homes in Greater Boston measuring whether buyers preferred natural-gas heating to oil, which tends to be more expensive. More often than not, the higher costs of an energy efficiency upgrade at the time of sale is not quite the best selling point when homebuyers are calculating their annual energy savings.
Issues, such as what are the true savings one can get from solar systems and what an energy-efficiency upgrade will do to a home are often complicated with green labels (and green washing) that most homeowners and buyers, along with real estate agents don’t often understand. This is where an accurate knowledge of green terms (LEED, HERS, ENERGY STAR) can play a major role in choosing the best green projects that will have a concrete result in reducing energy use, energy bills, and/or energy impact on the environment in a home.
The research that has been done to compare homes for sale with green features versus without has shown a 1.7% to 9% premium for the green homes in the different samples. More data and improved data will make those results more robust. Thank you to folks like Craig Foley who are helping with the market transformation and especially helping transaction professionals operate better – with better knowledge and better labeling tools. When greening one's home, the homeowner or buyer should know the effects of their green upgrades, even if it's as simple as cleaner air quality or decreased energy and water waste. Because what a great feeling it is to say that your home is energy-efficient, when it actually is enhancing your equity in it at the same time.
The Green Breakfast Forum: What's Cooking With Current Advocacy Efforts?
Our Advocacy Committee hosted a successful Green Breakfast Forum yesterday to highlight the recent Advocacy efforts made in our Chapter. With six Advocacy Priorities and six enthusiastic presenters, our forum turned out to be an exciting touchstone in our Chapter's momentum supporting many hot bills at the State House, and for continuing awareness and education on these issues. Starting with a brief introduction and history of USGBC Massachusetts Chapter, Cherie Ching kicked off the forum and encouraged questions and open discussion throughout the event.
Net Metering Improvements– David Bliss continued the Green Breakfast with the complicated and pressing issue of net metering. Giving a brief background on the origins of energy regulation of Public Utility Regulatory Policies Act (PURPA) enacted in 1978, David explained how net metering has become such an essential element for energy generation and renewable energy nationwide! The recent Bills S.1770 and S.1973, with Senator Downing's amendment, to lift the limits to net metering known as solar caps, triggered interesting comments and dialogue throughout David's presentation. The feedback that we received truly confirmed the complexities of net metering and that continuing this conversation with those of various fields from supporting and opposing sides is the most important. We also look forward to working in collaboration with Acadia Center and allied organizations.
Net Zero Energy Building (NZEB) Codes– Kate Bubriski kept the advocacy energies flowing by diving into Net Zero Energy Building codes and how Massachusetts, although maintaining decent progress, still has a long way to go to reach NZEB goals. Bill S.1771 would act as a dragnet for residential and commercial buildings to achieve net zero energy performance by 2020 and 2030 respectively. This bill also designates the Board of Building Regulations and Standards (BBRS) to establish definitions of zero net-energy for residential and commercial buildings. Kate emphasized the interconn ectedness of supporting NZEB and the movement of the other Chapter Priorities, such as net metering and PACE. Although there are success stories already in the Commonwealth, such as with the Cambridge Net Zero Task Force, there was discussion about organizations in opposition to NZEB, such as NAIOP. We will continue to look towards NZEB as our priority by collaborating and learning from the steps taken by allied organizations.
Property Assessed Clean Energy (PACE) financing– With John DiModica, PACE Issue Captain on the conference line and unable to present, Kate also spearheaded the PACE financing priority by explaining the role of PACE for property owners and project developers. Bill S.1774 would expand the current PACE legislation by allowing 100% project funding as a voluntary property tax assessment, not a loan. The assessment remains part of the property regardless if the property is sold or there is a change of ownership. Giving MassDevelopment state-wide bonding authority, this bill would encourage more energy efficiency and resiliency projects and renovations to commence. The presentation led to interesting discussion on the role of municipalities, which properties and buildings would be included in the bill, and the difference (and complications) of Residential PACE (which is not part of S.1774 and a significantly different policy issue). The MA PACE Coalition continues to work on a more aggressive advocacy approach to pushing PACE to the top of the priority list in the legislature.
Home Energy Assessment– Craig Foley took center stage in addressing many issues on Home Energy Assessments with much enthusiasm as he played devil's advocate on the pros and cons of Bill S.1761, An Act relative to home energy efficiency.” His presentation triggered many questions and concerns about the energy rating systems and requirements, how realtors would be affected, the benefits homeowners would receive, and the inherent energy characteristics v. occupancy energy consumption. Although net metering is taking away much attention from this important priority, we can voice our support for this bill to the legislature to push action.
Energy Efficiency Education– Celis Brisbin highlighted the importance of Energy Efficiency Education for our Chapter, as well as for our State, in order to create more awareness and regularity of the green building certification process. Celis pointed out the many educational programs our Chapter offers such as LEED Credential Maintenance; LEED Green Associate Exam Prep Workshops; GPRO for Operations & Management; Construction Management, and other modules; Green Building tours; and Outreach & Education to the general public to support our advocacy agenda. Through Bill H.2857, USGBC MA can create more of a presence in the standardizing of green education in MA with the educational programs we already provide to our members!
Green Tax Incentives– Jerome Garciano finished off the Green Breakfast with a brief description of his research on green tax incentives through his Green Tax Incentive Compendium of July 2015. While Jerome further explained about the benefits and availability of these Federal and State tax incentives for renewable energy and energy efficiency, he passed around an impressive 131-pg. booklet detailing the tax incentives by jurisdiction, statute, technology, and amount. The discussion was directed to what Massachusetts would have to do to address expiring or expired tax incentives and what LEED-specific tax benefits would be available for our State. Jerome went further to describe New Mexico and Connecticut as being success stories for green building tax credit. The Advocacy Committee looks forward to continuing the dialogue on green tax incentive opportunities for our State in order to incentivize more property owners to choose the green building path!
Our Green Breakfast Forum came to a close a little later than expected, but surely our participants were going leaving with full stomachs and satisfied minds! Our loyal green participants took advantage of this opportunity to stick around, make connections, ask questions, as well as plan for the beach party, SOAK UP THE SUN rally to the State House happening right up the street in the next hour. Thank you for your participation, contribution, and interest in our Green Breakfast- Advocacy Forum. We look forward to continuing our advocay movement and hope to see you at the next Green Breakfast on Thursday, August 20 on Architecture + Human Subconscious Responses to the Built-Environment!
We are currently editing our recorded-audio version of the Green Breakfast and it will be up on the GBCI website soon!
As the brutal cold of winter 2015 fades to a memory, the question for an increasing number of potential home buyers is how to find a comfortable house that won't break the bank with high energy bills.
Join NEEP on Wednesday June 24 from 10:00 to 11:00 EST for a webinar which will focus on the value of energy efficiency in the real estate market and provide a snapshot ofthe growing high-performance housing market.
RE/MAX's Chief of Energy Solutions, Craig Foley, will outline the importance of being able to recognize the energy efficient characteristics of homes. His presentation will provide resources that real estate professionals can use to stay up to date on the rapidly changing technologies that contribute to a comfortable, healthy, and affordable living environment.
On Tuesday, May 19th, the Global Warming Solutions Project hosted a policy briefing on legislation that addresses climate change. Much of the conversation around climate change involves state energy policy and much of that affects buildings. The USGBC MA is party to these discussions as they relate to our priority advocacy issues and also our broader concerns. In the legislative arena, things can move fast and something that has been on a back burner can suddenly arrive to the fore. Our advocacy volunteers and staff are dedicated to tracking issues and enabling our members and other stakeholders to participate in a more informed manner.
The morning's presentations were led by Josh Craft, Program Director of the Environmental League of Massachussetts. ELM summarized the event recently (thank you ELM!):
ELM hosted an energy policy briefing for legislators and their aides Tuesday, focusing on opportunities for the state to save customers money and curb greenhouse gas emissions by reducing energy waste. Rep. Ehrlich (D-Marblehead), a major leader on energy and environmental issues, and members of ELM's Global Warming Solutions Project (GWSP) shared their views on policies that will build upon Massachusetts' success in improving energy efficiency.
– Rep. Ehrlich provided an overview of her efforts to fix natural gas leaks, which cost Massachusetts gas customers almost $40 million each year. Her legislation, HB 2870 (Protecting Consumers from Leaked or Unaccounted for Natural Gas), would require the gas utilities to account for leaked natural gas from its pipelines and discount the value of those leaks from customers' energy bills.
* Jim O'Reilly, of Northeast Energy Efficiency Partnerships (NEEP), discussed the value of energy efficiency as an energy resource, meeting customers' energy needs without costly new power plants or transmission lines. He then focused on the benefits of SB 1761 (Relative to Home Energy Efficiency), sponsored by Senate Energy Chairman Downing (D-Pittsfield). SB 1761 is a top legislative priority for ELM this session. It would create a “first in the nation” home energy label so that home buyers can understand the energy costs of a home they may buy as part of their purchasing decision.
* Mark LeBel, of the Acadia Center, shared their vision for solar and locally owned energy resources as central to our energy generating system, finding that solar photovotaics offer significant economic and societal benefits to Massachusetts customers. LeBel encouraged lawmakers to preserve the current net metering policy while making smart changes to our solar incentive programs. Such changes will reduce program costs while allowing all customers to participate in these vital programs.
One topic that came up was the labeling of homes and buildings in order to help market participants better evaluate the value of an assett. We are actively tracking this legislative initiative.
And this is a good one, justifying support for local renewable generation – each dollar spent on carbon-intensive fossil fuels and distant transmitted hydro power means money leaving the economy of the Commonwealth. We can make better investments in local, renewable power for numerous economic advantages.
It was good to see some USGBC MA members in the audience and we will continue to work and collaborate with our colleagues in the intersection of climate justice, economic growth, energy, and buildings.
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