Proposed Resolution - 11/24/20211
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _____________
Sustainable Development Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY ADOPTING A SUSTAINABLE DEVELOPMENT POLICY
WHEREAS, Salt Lake City adopted a joint resolution establishing renewable energy
and carbon emission reduction goals for Salt Lake City (“Joint Resolution”). The Joint
Resolution details the negative effects of climate change and commits to the reduction of
community greenhouse gas emissions by at least 50% by 2030 and at least 80% by 2040
relative to the 2009 community emissions baseline (“Sustainability Goals”).
WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) recognizes the
great impact development has on increased greenhouse gas emissions and local air quality.
WHEREAS, in an effort to reduce emissions and help achieve the Salt Lake City’s
Sustainability Goals, the Board of Directors of the Redevelopment Agency of Salt Lake City
(“Board”) desires to formalize a policy to promote environmentally sustainable development
projects.
WHEREAS, this Sustainable Development Policy is intended to modify existing RDA
policies including the Loan Program Policy, the Tax Increment Reimbursement Program
Policy, and the Real Property Disposition Policy.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment
Agency of Salt Lake City shall adopt the following Sustainable Development Policy:
1.PURPOSE
The purpose of the RDA Sustainable Development Policy is to promote a built
environment that incorporates sustainable building practices and technologies to reduce
building-related greenhouse gas emissions, improve local air quality, preserve natural
resources and enhance community resiliency. As detailed below, certain RDA projects
must meet the Threshold Requirements (as detailed in Section 3) as well as the applicable
Program-Specific Sustainability Measures (as detailed in Section 4).
2.APPLICATION OF POLICY
The Threshold Requirements must be met by all projects that submit an application to the
RDA after the adoption of this policy that anticipate receiving a building permit on or after
January 1, 2023. Projects receiving a loan that meet the Threshold Requirements and obtain
a building permit before January 1, 2023 shall be eligible to earn a 1% interest rate reduction.
The Program-Specific Sustainability Measures (requirements and incentives that include
meeting Threshold Requirements) shall be effective immediately.
Attachment A: RDA Board Resolution/Sustainable Development Policy
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3. THRESHOLD REQUIREMENTS
The Threshold Requirements are as follows:
a. Enhanced Energy Performance - All new construction building projects
(including site acquisition) and building projects that receive, or are anticipated
to receive, two hundred thousand dollars ($200,000) or more in RDA funding
shall be designed to achieve a “Designed to Earn ENERGY STAR” score of 90
or higher or a Design Target Site Energy Use Intensity (EUI) value
corresponding with such a score that is generated by the Designed to Earn
ENERGY STAR tool and participate in the City Sustainability Department’s
Elevate Buildings Program. The EUI target shall be based on the Designed to
Earn ENERGY STAR tool or comparable source.1
b. Emission-Free Building Operation - In addition to meeting the Threshold
Requirement for enhanced energy performance, all new construction building
projects (including site acquisition) and building projects that receive, or are
anticipated to receive, nine hundred thousand dollars ($900,000) or more in
RDA funding shall also be designed to operate without on-site fossil fuel
combustion (i.e., propane, natural gas).2
4. PROGRAM-SPECIFIC SUSTAINABILITY MEASURES
In addition to the Threshold Requirements, Program-Specific Sustainability Measures are
required or incentivized as determined by the applicable program type listed in Table 1. If
an RDA program type is not listed, no further sustainability measures will be required
beyond the Threshold Requirements.
TABLE 1: Program-Specific Sustainability Measures
Program Type Sustainability Measures –
Requirement or Incentive as Indicated
Tax Increment Reimbursement
Program (TIR) over $500,000 • On-Site Net Zero building status is required
Land Dispositions
• Off-Site Net Zero is required
• On-Site Net Zero will receive higher
rankings for competitively marketed projects
RDA Loan Programs – applicable to
any RDA loan*
• Off-Site Net Zero will be eligible to receive
interest rate reduction of 1%
• On-Site Net Zero will be eligible to receive
interest rate reduction of 2%
* Projects are eligible for one sustainability-related interest rate reduction, with the ability to reduce the
1See ‘Designed to Earn ENERGY STAR’
program: https://www.energystar.gov/buildings/resources_topic/commercial_new_construction/achieve_designed_earn_e
nergy_star
2 Projects may utilize the All-Electric provisions of the New Building Institute’s Building Decarbonization Code or
comparable standard. See: https://newbuildings.org/resource/building-decarbonization-code/
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interest rate to a minimum of 1%. Interest rates are subject to an adjustment, of up to a 1% deviation, based
on project cash flow and debt coverage ratio calculated at time of application and underwriting.
a. Net Zero Building Standards –
Projects must meet the 2021 IECC Zero Energy Appendix standards or obtain a
third-party certification to achieve Off-Site or On-Site Net Zero status.
Examples of code-based and third-party certifications for net zero buildings are
included in Table 2. Alternative code-based or third-party certifications not
listed in Table 2 will be considered by RDA staff on a case-by-case basis.
i. Off-Site Net Zero – To be eligible to purchase RDA-controlled
property or receive an RDA loan sustainability-related interest rate
reduction, projects must meet the Threshold Requirements and source
100% of the project’s total estimated annual electricity consumption by
participating in a utility-sponsored renewable electricity program/tariff
such as the Blue Sky or Subscriber Solar programs.
ii. On-Site Net Zero – To be eligible to receive the benefits of a TIR,
purchase RDA-controlled property, or receive an RDA loan
sustainability-related interest rate reduction, projects must meet the
Threshold Requirements and supply 100% of the building’s electricity
needs with renewable energy. Renewable energy must include on-site
renewable energy that:
1) Supplies at least 50% of the project’s total estimated annual
electricity consumption (measured as kWh/year); or,
2) Utilizes at least 50% of the project’s available roof space for
on-site renewable energy generation.3
Any remaining renewable energy generation that can’t be
accommodated on site must be procured through off-site renewable
energy generation, including utility-sponsored renewable electricity
programs or tariffs.
3 “Available roof space” means roof spaces that are flat or face South, East, or West, are not shaded by trees or structures,
or not obstructed by building architectural features. This requirement can be met through installation of an equivalently
size solar array on another structure on the property (carport, ground mount, etc.). Roof space is exempt from being
considered part of the “available roof space” if it is so shaded that solar panels would produce less than 70% of th e
energy they would generate without shading. For example, if 20% of a project’s roof is so shaded that solar panels would
generate less than 70% of their intended output, then a project can still meet the requirement by installing solar on half of
the other 80% that is suitable for solar, i.e. 40% of the roof total.
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TABLE 2: Examples of Code-Based or Third-Party Certifications for Net Zero Buildings
CODE
COMPLIANCE/
CERTIFICATION
OPTIONS
OFF-SITE
NET ZERO
ON-SITE
NET ZERO
BUILDING
TYPE
INTENT
Code-Based Pathway to meet Net Zero Building Standards
2021 IECC
Appendix CC Zero
Energy Commercial
Building Provisions
(LINK)
Meets required
EUI targets
and 100% of
renewable
electricity is
supplied by
offsite sources
approved in
the 2021 IECC
Appendix CC.
Meets required
EUI targets and
includes as much
onsite solar as
defined in Section
4(a)(ii), with the
remaining
renewable
electricity
supplied by offsite
sources approved
in the 2021 IECC
Appendix CC.
Any building
subject to the
IECC
Commercial
provision
(generally 4+
stories).
This is a code-based
performance approach
to achieving net zero
energy in a project that
is determined through
compliance with the
Zero Energy
Commercial code
language rather than a
third-party
certification.
Third-Party Certification Pathways to meet Net Zero Building Standards
Passive House
(LINK)
Passive House
with 100%
offsite
renewable
energy.
Passive House
with as much
onsite solar as
defined in Section
4(a)(ii), with the
remaining
renewable
electricity
supplied by offsite
sources approved
in the 2021 IECC
Appendix CC.
Any building
type.
This approach adds a
renewable energy
requirement to a
project that uses
Passive House
strategies for ultra-low
energy use.
Enterprise Green
Communities
Certification Plus
2020 (LINK)
EGC
Standards 5.4
(Zero Energy)
with offsite
and 5.5b (Zero
Carbon).
EGC Standards
5.4 (Zero Energy)
and 5.5b (Zero
Carbon). Projects
must include as
much onsite solar
as defined in
Section 4(a)(ii),
with the
remaining
renewable
electricity
supplied by offsite
sources approved
Any affordable
housing project.
Enterprise Green
Communities is a state-
and nationally-
recognized affordable
housing sustainability
certification. The 2020
criteria awards
increased points for
projects that achieve
energy-related
innovations, including
Zero Energy status
(100% on or off-site)
and Zero Carbon status
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in the 2021 IECC
Appendix CC.
(all-electric).
Enterprise Green
Communities is
recognized in the Utah
Housing Corporation’s
Qualified Allocation
Plan for Low Income
Housing Tax Credits.
U.S. Green Building
Council LEED Zero
(LINK)
LEED Zero
Energy
certification
(building with
100% of
source energy
supplied or
offset with
renewable
energy over
12-month
period
(LEED Zero
Carbon also
qualifies).
LEED Zero
Energy
certification
(building with
100% of source
energy supplied or
offset with
renewable energy
over 12-month
period – with at
least 50% of
renewable energy
being located on-
site)
(LEED Zero
Carbon also
qualifies).
Any building
with LEED
New
Construction
(NC) or
Existing
Buildings (EB)
certification, or
seeking these
certifications.
This approach utilizes
the U.S. Green
Building Council’s
LEED Zero program
for projects already
certified as LEED or
seeking LEED
certification.
International Living
Future Institute
N/A Zero Energy
certification.
(LINK)
Any building
type.
This standard requires
the elimination of on-
site combustion and
100% on-site
renewable energy.
Zero Carbon
certification.
(LINK)
Any building
type.
This standard allows
off-site renewable
energy in certain
situations.
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5. COMPLIANCE
All projects must verify compliance with Threshold Requirements and Program-
Specific Sustainability Measures as follows:
a. Threshold Requirements
i. Enhanced Energy Performance – A Statement of Energy Design
Intent (SEDI)4 verifying that the project has been designed to meet a
Designed to Earn ENERGY STAR target of 90 or higher or a
corresponding EUI target must be submitted to the RDA. A year after
the building has received a certificate of occupancy (C of O), the
project must submit building operations data on an annual basis to the
RDA and the City’s Sustainability Department similar to the
benchmark reporting requirements in the City Sustainability
Department’s Elevate Buildings Program5. If the project does not meet
an ENERGY STAR score within five (5) points of what was originally
projected within two (2) years of receiving C of O, building updates
will be required aimed at achieving the target score.
ii. Emission-Free Building Operation – A letter from a licensed
architect or engineer verifying that the project has been designed and
constructed without on-site fossil fuel combustion and describing the
energy system(s) utilized must be submitted to the RDA.
b. Program-Specific Sustainability Measures
i. Net Zero Building Standards – Projects must meet the 2021 IECC
Zero Energy Appendix standards (verified in a letter by a licensed
architect or engineer) or obtain a third-party certification to submit to
the RDA as indicated within Table 2. Where certifications are not
issued until after the building has been put into service, a letter from a
licensed architect or engineer verifying that the building has been
designed to meet certification standards and noting the anticipated
certification date must be submitted to the RDA. The completed
certification checklist must also be attached to the letter.
4 An ENERGY STAR Statement of Energy Design Intent (SEDI) document includes the Design Target ENERGY STAR
Score and the Design Target Site EUI. Energy modeling will be necessary to estimate the annual energy consumption of
a building, which is required to input into the ENERGY STAR Portfolio Manager and complete the SEDI. An example
SEDI document can be accessed
here: https://www.energystar.gov/sites/default/files/tools/SEDI_Sample%281%29.pdf?f4b0-a781
5 See ‘Elevate Buildings’ Program: https://www.slc.gov/sustainability/elevate-buildings/
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ii. Off-Site Net Zero – An energy bill verifying participation in an
available renewable energy utility tariff program must be submitted to
the RDA within three (3) months of receiving a C of O.
iii. On-Site Net Zero – A letter from a certified renewable energy system
designer illustrating that the project meets at least one of the On-Site Net
Zero renewable energy generation requirements (from 4(a)(ii)) must be
submitted for RDA approval.
c. Noncompliance – Projects that are not in compliance with applicable
Threshold Requirements and Project-Specific Sustainability Measures may
either be in default, be required to repay the RDA incentive that was granted,
or provide any other remedy as detailed in the specific terms of the agreement
between the RDA and the beneficiary (including, but not limited to, damages).
6. EXCEPTIONS
The RDA Board of Directors, by a majority vote of those present, may waive
requirements or make exceptions to the foregoing criteria and procedures with a finding
that the RDA’s mission and values will be furthered by such waiver or exception. RDA
staff will prepare a written recommendation and statement regarding the waiver or
exception. The statement will be placed in the project file.
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Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______
day of ________________, 202 .
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
11/22/2021