2022 -- H 7850

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LC005100

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- THE GREEN BUILDINGS ACT

     

     Introduced By: Representatives Kislak, McGaw, Speakman, Edwards, Morales, Cassar,
Cortvriend, Potter, and Tanzi

     Date Introduced: March 04, 2022

     Referred To: House Environment and Natural Resources

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 37-24-3 of the General Laws in Chapter 37-24 entitled "The Green

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Buildings Act" is hereby amended to read as follows:

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     37-24-3. Definitions.

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     For purposes of this chapter, the following definitions shall apply:

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     (1) "Commercial building" means a building or multiple buildings on a parcel of which not

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less than fifty percent (50%) of the gross floor area, including hallways or other common space,

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but excluding parking, is used for commercial, retail, office, professional, educational or other

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nonresidential purposes, or any grouping of commercial buildings designated by the department or

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office as an appropriate reporting unit for the purposes of this section; provided, however, that

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"commercial building " shall not include a building owned or leased by a municipal or state agency.

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     (1)(2) "Construction" means the process of building, altering, repairing, improving, or

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demolishing forty percent (40%) or more of any public structures or buildings, or other public

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improvements of any kind to any public real property.

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     (2)(3) "Department" means the department of administration.

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     (4) "Energy " means electricity, natural gas, steam, hot or chilled water, heating oil,

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propane or other products designated by the office used for heating, cooling, lighting, or water

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heating, or for powering or fueling other end uses.

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     (5) "Energy performance rating or assessment score" means a score assigned to a building

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based on how efficiently it uses energy relative to other buildings of the same type. The office shall

 

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promulgate regulations to establish the scoring system.

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     (6) "Energy use benchmarking tool " means the ENERGY STAR Portfolio Manager, an

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online energy use benchmarking tool used by the United States Environmental Protection Agency

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for reporting and managing the energy performance, water efficiency and greenhouse gas emissions

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of building, or a tool capable of:

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     (i) Performing all the functions relevant to compliance with this section;

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     (ii) Allowing for reporting by third parties, including, but not limited to, gas distribution

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and electric distribution companies; and

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     (iii) Exchanging information and data with the ENERGY STAR Portfolio Manager.

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     (3)(7) "Equivalent standard" means a high-performance green building standard, other than

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LEED, LEED for Neighborhood Development, and SITES, that provides a rating system or

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measurement tool, that, when used, leads to outcomes, similar or equivalent to, LEED, LEED for

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Neighborhood Development, and SITES outcomes, in terms of green building, green infrastructure,

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and green site performance; current accepted equivalent standards include green globes, Northeast

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collaborative high-performance schools protocol; or other equivalent high-performance green

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building, green infrastructure, and green site standards accepted by the department office.

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     (8) "kBTU" means one thousand (1,000) British thermal units.

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     (9) "Large building " means a building that meets any of the following criteria:

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     (i) Buildings owned or leased by a municipality, state agency, or other government or

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quasi-government entity consisting of not less than ten thousand square feet (10,000 sq. ft.) of gross

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floor area;

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     (ii) As of January 1, 2022, residential or commercial buildings consisting of not less than

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twenty five thousand square feet (25,000 sq. ft.) of gross floor area;

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     (iii) As of January 1, 2025, residential or commercial buildings consisting of not less than

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twenty thousand square feet (20,000 sq. ft.) of gross floor area; and

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     (4) As of January 1, 2028, residential or commercial buildings consisting of not less than

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fifteen thousand square feet (15,000 sq. ft.) of gross floor area.

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     (4)(10) "LEED" also, "LEED for Neighborhood Development, and SITES certified

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standard" means the current version of the United States Green Building Council Leadership in

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Energy and Environmental Design green building rating standard referred to as LEED, LEED for

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Neighborhood Development, and SITES certified. SITES means the U.S. Green Building Council's

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Sustainable Sites Initiative.

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     (5)(11) "Major facility project" means:

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     (i) A building construction project larger than five thousand (5,000) gross square feet of

 

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occupied or conditioned space, and its public real-property site; or

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     (ii) A building renovation project larger than ten thousand (10,000) gross square feet of

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occupied or conditioned space, and its public real-property site.

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     (6)(12) "Public agency" means every state office, board, commission, committee, bureau,

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department, or public institution of higher education.

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     (7)(13) "Public facility" means any public institution, public facility, public equipment, or

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any physical asset owned, including its public real-property site, leased or controlled in whole or

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in part by this state or any agency or political subdivision thereof.

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     (14) "Office " means the office of energy resources.

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     (15) "Owner " means the owner of record of a building, or a designated agent thereof,

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including, but not limited to, the association or organization of unit owners responsible for

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management in the case of a condominium, the board of directors in the case of a cooperative

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apartment corporation, and the net lessee in the case of a building subject to a net lease with a term

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of not less than forty-nine (49) years, inclusive of all renewal options.

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     (16) "Residential building " means a building or multiple buildings on a parcel of which

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not less than fifty percent (50%) of the gross floor area, including hallways and other common

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space serving residents, but excluding parking, is used for dwelling purposes, or any grouping of

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residential buildings designated by the office or a municipality as an appropriate reporting unit for

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the purposes of this chapter; provided, however, that "residential building " shall not include a

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building owned or leased by a municipal or state agency.

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     (17) "Tenant" means any tenant, tenant-stockholder of a cooperative apartment

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corporation, or condominium unit owner.

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     SECTION 2. Chapter 37-24 of the General Laws entitled "The Green Buildings Act" is

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hereby amended by adding thereto the following section:

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     37-24-7. Building performance standards act.

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     (a) For large buildings, the office shall undertake energy use benchmarking to determine

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whether each building utilizes more or less energy, and emits more or less greenhouse gases, than

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buildings of comparable size, occupancies and uses, and to inform a statewide analysis of energy

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use trends and opportunities to increase energy efficiency and reduce greenhouse gas emissions.

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To conduct the benchmarking, the office shall create, procure, or designate an energy use

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benchmarking tool and shall provide technical support and assistance on the use of the

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benchmarking tool to the owners of buildings subject to this section.

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     (b)(1) To administer this section, the office may designate subcategories within each

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building type and occupancy, and may establish different reporting requirements and energy

 

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performance standards for each subcategory. In establishing reporting requirements and energy

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performance standards, the office may consider whether tenant-occupied units or spaces are

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separately metered.

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     (2) Not later than January 31 of each year, beginning in 2023, the owner of each large

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building shall report their energy use for the prior calendar year to the office. The office shall

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provide a paper form or online portal for the submission of this information. The office shall

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determine what information is necessary to request, and will request, at a minimum, the information

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in subsection (c) of this section. The owner of a building subject to this section may authorize a gas

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or electric distribution company or other third party to report building-specific data to the office,

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and the gas or electric distribution company shall report building-specific data to the office upon

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such authorization; provided, however, that such authorization shall not relieve an owner from

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compliance with this section.

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     (3) Annually, an owner of a large building with separately-metered and tenant-occupied

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units or spaces shall request from each tenant of the building all information necessary to comply

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with the requirements of subsection (b)(2) of this section and each tenant shall report the required

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information to the owner. The owner of a large building may bypass individual authorization and

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request the electric and gas distribution companies to provide the aggregate energy consumption of

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all meters in the building, including tenant-occupied units and separately-metered units, and the

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electric and gas distribution companies shall provide the data to the building owner, separated by

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month and consumption by source. Failure of an owner to report energy use information to the

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office shall not impose liability on a tenant.

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     (4) The office shall establish a deadline extension or hardship waiver process for owners

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who, in the judgment of the office, demonstrate cause for a deadline extension or hardship waiver.

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     (5) If an occupied building subject to the requirements of this section is transferred, the

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buyer shall make reasonable efforts to report energy use information for the building for the entire

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calendar year, if practicable.

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     (c) Annually, not later than March 31, the office shall make available on its executive

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climate change website and dashboard required by § 42-6.2-3(13) energy use information and data

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for the preceding calendar year for each large building, on a building-by-building basis. For each

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building, the information made available shall include, but not be limited to:

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     (1) The address of the building and the municipality in which the building is located;

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     (2) The owner of the building;

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     (3) The building’s total energy use in kBTU, total greenhouse gas emissions in pounds of

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carbon dioxide equivalent, total square footage, energy intensity in kBTU per square foot and

 

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greenhouse gas emissions per square foot in pounds of carbon dioxide equivalent per square foot;

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     (4) The breakdown of the building’s energy use by electricity, gas, steam and other sources;

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and

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     (5) An energy performance rating or assessment score. The office shall utilize such

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practices as are necessary to prevent the public disclosure of personal information regarding owners

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and tenants, and maintain a quality assurance process to improve the accuracy and completeness of

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the available information. The office shall provide owners with the opportunity to submit

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contextual information related to energy use in their buildings and shall disclose such information

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on its website upon request by the owner.

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     (d) The office shall make available to a regional planning agency, municipality or other

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public agency requesting such information any data set forth in this section.

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     (e) The office shall prepare an annual comprehensive report on the energy performance of

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large buildings utilizing the information and data collected pursuant to this section. The report shall

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include, but not be limited to, an analysis of energy performance, greenhouse gas emissions, and

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energy sources by building size, occupancy, and use. The report shall also include, when available,

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energy performance and greenhouse gas emissions over time. The report shall be posted on the

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office’s website and sent to the house committee on environment and natural resources and the

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senate committee on environment and agriculture not later than March 31.

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     (f) On the basis of the comprehensive reports prepared by the office pursuant to subsection

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(e) of this section and other information and data as deemed necessary by the commissioner of

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energy resources, the commissioner shall conduct an annual review of trends in the energy

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performance of large buildings and recommend changes to state laws, regulations, policies, and

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programs to achieve further energy reductions.

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     (g) The office shall ensure that electric distribution companies provide owners of buildings

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subject to this section with up-to-date information about energy efficiency opportunities or actions

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available to increase energy efficiency, including incentives in utility-administered or other energy

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efficiency programs and changes in energy assessment technology. The office shall prioritize those

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buildings that have not demonstrated year-to-year improvement in their energy performance rating

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or assessment score.

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     (h)(1) The office shall establish energy performance standards for each building type. The

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office shall establish these standards on the following schedule:

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     (i) Buildings owned or leased by a municipality, state agency, or other government or

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quasi-government entity consisting of not less than ten thousand square feet (10,000 sq. ft.) of gross

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floor area, and residential or commercial buildings consisting of not less than twenty-five thousand

 

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square feet (25,000 sq. ft.) of gross floor area: no later than December 31, 2023, and every five (5)

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years thereafter;

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     (ii) Residential or commercial buildings consisting of not less than twenty thousand square

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feet (20,000 sq. ft.) of gross floor area: no later than December 31, 2026, and every five (5) years

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thereafter; and

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     (iii) Residential or commercial buildings consisting of not less than fifteen thousand square

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feet (15,000 sq. ft.) of gross floor area: no later than December 31, 2029, and every five (5) years

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thereafter.

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     (2) The office shall establish reporting and data verification requirements for each five (5)

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year compliance cycle. These standards shall apply only to large buildings.

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     (3) In developing energy performance standards, the office shall maximize opportunities

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for the state to achieve the requirements of § 42-6.2-2, as well as other laws and policies related to

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climate change, emissions reductions, energy efficiency, and renewable energy.

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     (4) The office may establish campus-wide energy performance standards for post-

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secondary educational institutions and hospitals with multiple buildings in a single location that are

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owned by a single entity; provided that, the development of any standard by the office shall be

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based upon an analysis of the existing building efficiency of each campus and the compliance

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pathways shall achieve savings comparable to those outlined in subsection (h)(4) of this section.

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     (5) The office shall set energy performance standards that are at least as strong as the

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median energy performance rating or assessment score of large buildings of each building type.

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     (i)(A) For the initial five (5) year compliance cycle, owners of large buildings with an

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energy performance rating or assessment score lower than the energy performance standard

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established by the office must satisfy one of the following compliance pathways:

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     (B) An energy performance pathway, which shall require a building to demonstrate a

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decrease in normalized site energy use averaged over the last two (2) years of the five (5) year

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compliance cycle, as compared to the normalized site energy use averaged over the last two (2)

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years preceding the first year of the five (5) year compliance cycle; or

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     (ii) An emissions performance pathway, which shall require a building to demonstrate a

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decrease in normalized site greenhouse gas emissions over the last two (2) years of the five (5) year

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compliance cycle, as compared to the normalized site greenhouse gas emissions averaged over the

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two (2) years preceding the first year of the five (5) year compliance cycle; provided that, switching

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from oil or another fuel to natural gas for space heating or water heating shall not count toward a

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building’s compliance with this pathway. The office shall require large buildings subject to the

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requirements of this subsection to reduce normalized site energy use or greenhouse gas emissions

 

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by at least twenty percent (20%) over the initial five (5) year compliance cycle, and may require

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greater reductions if the office finds that it is feasible to do so and will help achieve the state’s

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enforceable greenhouse gas emissions targets under § 42-6.2-2. The office must hold at least one

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public hearing before setting the required reduction in normalized site energy use or greenhouse

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gas emissions over the initial five (5) year compliance cycle.

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     (2) For subsequent five (5) year compliance cycles, the office shall establish energy

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performance standards and compliance pathways designed to achieve emissions and energy

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reduction targets; provided that, the compliance pathways shall maximize the potential to reduce

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greenhouse gas emissions from large buildings by at least eighty percent (80%) by 2040, compared

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to the baseline level of emissions in 2022, and to achieve the state greenhouse gas emissions limits

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under the state’s enforceable greenhouse gas emissions targets under § 42-6.2-2.

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     (j) The office shall establish exemption criteria for large buildings to delay compliance

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with the energy performance standards for up to three (3) years if the owner demonstrates, to the

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satisfaction of the office, financial distress, change of ownership, vacancy, major renovation,

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pending demolition, or other acceptable circumstances determined by the office by regulation.

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     (k) The office shall coordinate with utility companies and the public utilities commission

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to establish incentive and financial assistance programs for owners to meet energy performance

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standards.

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     (l)(1) Municipalities may establish and enforce energy use benchmarking programs or

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energy performance standards for buildings, in lieu of the programs and standards established by

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the office; provided that, the following conditions are met:

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     (i) The municipality uses an energy use benchmarking tool that collects information similar

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to the energy use benchmarking tool used by the state;

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     (ii) Annually, not later than July 1, the municipality collects and forwards to the office, on

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a building-by-building basis, the required energy use information from the previous calendar year,

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using standardized units of measure and formats established by the office; and

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     (iii) Energy performance standards established by the municipality result in reductions in

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energy use and greenhouse gas emissions that are comparable to or greater than the standards

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established by the office. Municipalities may set lower gross floor area thresholds for buildings

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subject to their programs and standards.

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     (2) The office shall review requests from municipalities to establish their own programs,

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and the office may deny requests if it is not satisfied that the above conditions are met. The office

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shall evaluate any municipal programs established under this subsection at least once every five (5)

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years, and may withdraw its approval if municipal programs fail to comply with the above

 

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conditions.

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     (3) The office shall include data from all municipalities, including municipalities with their

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own energy use benchmarking programs or energy performance standards, in the website

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designated in subsection (d) of this section, in the report required under subsection (f) of this

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section, and in the review required under subsection (g) of this section.

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     (m)(1) Owners of large buildings may pay an alternative compliance payment if their

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buildings fail to satisfy one of the compliance pathways established in subsection (j) of this section.

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The amount of the alternative compliance payment shall be set by the office and shall be assessed

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per metric ton of carbon dioxide equivalent emissions, by which the building falls short of meeting

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the requirements of subsection (j) of this section. The alternative compliance payment shall be no

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less than two hundred twenty-five dollars ($225) per metric ton of carbon dioxide equivalent

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emissions, and shall be set at an amount ensuring that it is more cost-effective for the owners of the

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vast majority of large buildings to make the improvements necessary to meet the compliance

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pathways rather than pay the alternative compliance payment. The office shall revise the amount

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of the alternative compliance payment at least once every five (5) years. The alternative compliance

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payment shall be assessed in the final year of the five (5) year compliance period and in every

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subsequent year that a building fails to satisfy one of the compliance pathways.

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     (2) Owners of large buildings failing to comply with the energy use reporting and

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benchmarking requirements of this section or knowingly providing false or incomplete information

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to the office shall be subject to a fine. Owners of large buildings failing to satisfy one of the

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compliance pathways established in subsection (j) of this section who do not pay an alternative

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compliance payment to the office, as described in subsection (m)(1) of this section, shall also be

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subject to a fine. Fines shall be determined by the office and shall be assessed per day that a building

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owner is not in compliance with the requirements of this section. Fines shall be no less than five

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hundred dollars ($500) per day of noncompliance for buildings consisting of not less than twenty-

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five thousand square feet (25,000 sq. ft.) of gross floor area, three hundred fifty dollars( $350) per

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day of noncompliance for buildings consisting of not less than twenty thousand square feet (20,000

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sq. ft.) and not greater than twenty-four thousand nine hundred ninety-nine square feet (24,999 sq.

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ft.) of gross floor area, and two hundred dollars ($200) per day of noncompliance for buildings

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consisting of less than twenty thousand square feet (20,000 sq. ft.) of gross floor area. The office

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may set different levels of fines for different violations of this section.

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     (3) Alternative compliance payments and fines collected by the office shall be deposited

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into a separate account established by the office. Any funds collected shall be used first to pay for

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the costs incurred by the office in administering this section, and any remaining funds shall be used

 

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to further the objectives of this section, including deep energy retrofits of low-income and

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moderate-income housing.

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     (4) The office shall take all reasonable steps to inform the owners of large buildings of their

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obligations under this section.

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     (n) In municipalities that establish their own energy use benchmarking programs or energy

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performance standards, the municipality and not the office shall assess any alternative compliance

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payments or fines. Alternative compliance payments and fines assessed by municipalities shall be

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no less than those described under subsection (m) of this section. Funds collected through

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alternative compliance payments and fines assessed by a municipality shall be retained by the

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municipality.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- THE GREEN BUILDINGS ACT

***

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     This act would create the building performance standards act to create, by way of

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benchmarking and reporting, a statewide analysis of energy use and ways to increase energy

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efficiency.

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     This act would take effect upon passage.

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