Real Estate Foundation of BCOctober 9, 2015

Climate Leadership Plan Discussion Paper Submission

The Way We Live: Buildings, Communities, Design and Waste.

For the past decade, the Foundation has supported integrated community sustainability planning that helps people gain better access to shops, services, recreation and employment, protects natu-ral and working lands, and provides diverse housing that meets the full spectrum of needs related to age, access, and income1. We have also supported green building and community energy planning initiatives that lead to more resilient and sustainable buildings and communities2.

Despite notable progress is some areas, BC communities continue to face many challenges in mak-ing progress towards a sustainable built environment3:

• As a result of historic planning policies that supported low-density, auto-oriented land-use, BC is now seeing suburban sprawl outpacing the rate of growth in city centres by more than 160%4.

• BC residences and businesses emit substantially more GHG emissions than can be sustained while meeting climate action targets.

• Energy performance of existing building has been slow to improve and will not achieve targets without stronger interventions.

• Energy and carbon efficiency of new buildings can be further improved.

While we commend the Province for enabling legislation to plan for more sustainable communi-ties, such as the Green Communities Act, Local Government Climate Action Charter, Climate Action Revenue Incentive Program, Community Energy and Emissions Inventory, and higher Building Code standards for new construction, there is more work to be done. Local governments are central play-ers in implementing climate action and they need support, resources, and policy levers5. Communi-ties account for 60% of energy use and over half of all GHG emissions in Canada. The land-use and infrastructure planning decisions made in communities today will have long-lasting implications for community energy demand and energy costs for decades to come6.

1 See Fraser Basin Council Smart Planning, Smart Growth BC, Whistler Centre for Sustainability Integrated Community Sustainability Plan-ning for Small Communities 2 See: REFBC and Vancity Green Building Grant Program; Community Energy Planning: Getting to Implementation in BC (CEA and QUEST); Community Energy Leadership Program (CEA and CAS); Pathways Towards Carbon Neutral / Net Zero Energy for Residential Buildings in BC (Light House Sustainable Building Centre); Fraser Basin Council Green Building Policy Development and Mentorship in Rural and Re-mote Communities 3 The Built Environment in BC – Status, Trends and Future Prospects Discussion Paper (DRAFT Aug 25 2015, MODUS)4 The Built Environment in BC – Status, Trends and Future Prospects Discussion Paper (DRAFT Aug 25 2015, MODUS) which references Thompson, D. 2013. Suburban Sprawl: Exposing hidden costs, identifying solutions. Sustainable Prosperity. 5 See Fraser Basin Council Submission on Climate Leadership Plan Discussion Paper6 National Report on Policies Supporting Community Energy Plan Implementation (July 2015 Draft, Community Energy Planning: Getting to Implementation in Canada, CEA and QUEST)

1. Revitalize the planning of complete, compact, integrated communities, and better coordinate policies to achieve land use and climate action goals.

The Foundation encourages the Province to stimulate the planning of complete, compact, integrat-ed communities, as envisioned in 2007 BC’s Climate Action Charter. We also recommend funding and support for implementing community energy plans and other strategies to improve energy performance of existing buildings.

Some policies and programs work at cross-purposes. Although many local and regional govern-ments in BC are developing community plans (OCPs and ICSPs) to encourage land use and density aimed at compact, mixed-use, transit-oriented communities, research indicates that other regula-tory tools and constraints are limiting progress1. For example, zoning and Development Cost Charge (DCC) structures in many communities support traditional development patterns that subsidize sprawl by failing to recover the full cost of new infrastructure in suburban developments. This not only conflicts with goals for complete communities, but incurs other costs associated with auto-mobile dependency and suburban sprawl. Increased traffic congestion, longer travel distances and increased GHG emissions have significant visible and hidden costs to communities2.

Residents’ concerns about infill and increased density in their neighbourhoods are prevalent in communities of all sizes across the Province3. Many people are resistant to change associated with increased density and fear that a neighbourhood’s character will change. More education, aware-ness, and research are required to address these concerns and better understand community values in relation to the built environment. Local governments and developers need support to identify where values align or conflict with sustainable practices associated with infill, redevelopment, and/or multifamily housing forms4.

1 The Built Environment in BC – Status, Trends and Future Prospects Discussion Paper (DRAFT Aug 25 2015, MODUS)2 See Tackling Traffic: The Economic Cost of Congestion in Metro Vancouver (March 2015, CD Howe Institute in collaborative with Clean Energy Canada).

3 McAllister Public Opinion Research, August 2015, REFBC Public Opinion Research Built Environment 2015: Top Results Report. 4 MODUS August 31, 2015. Built Environment for British Columbia, Synthesis of Findings and Strategic Recommendations for REFBC and Partners.

Photo: Lanefab Design

2. Enable stronger regional planning responsibilities for regional districts. Community energy plans have been initiated widely across BC, due to supportive federal, provincial and local policies; however, in many cases implementation has been limited by a segmented ap-proach, with each local government department, jurisdiction and sector often acting in isolation1. Deep carbon reductions are required by 2050 and substantial integrated action is needed at the community and regional scale. Regional planning could play a more prominent role in these efforts. Since municipal Official Community Plans need to align with Regional Growth Strategies (RGS), RGS’s can provide a framework for coordinated planning approaches and more informed decision-making2. Currently, there are no minimum requirements for regional sustainability strategies or targets and no tools for regional districts to enforce their plans if member municipalities do not comply3. Such strategies could help ensure that growth is managed and coordinated, and climate action is tackled on a regional level4.

3. Set specific goals and milestones for ultra low-energy buildings (net-zero building ready) and establish performance-based stretch codes.

Buildings have significant GHG emission impacts and are responsible for 45-50% of community GHG emissions in BC5. To achieve net reductions in energy consumption and GHG emissions, BC will need to significantly improve the energy efficiency of new and existing buildings, and shift the remaining energy demand to low-carbon sources6. Research indicates there is substantial potential for achiev-ing these goals if the necessary targets, policy, regulatory, compliance, financing, training, and incentive measures are in place. For example, the UBC’s Collaborative for Advanced Landscape Planning (CALP) assessed options for achieving 80% reduction in building-related GHG emissions by 2050 in three existing BC neigh-bourhoods. They found that while this reduction was technically feasible, current policy would only achieve 35-50% reductions7. Success would require building envelope upgrades of almost all res-idences, standard installation of solar hot water, reductions in electricity use, redevelopment to multi-unit buildings, and new construction toward net-zero standards. It would likely also require increased enforcement of code compliance and better training and knowledge among building oper-ations staff to optimize performance8. Europe, California and Washington, have set targets for new buildings to reach ultra low-energy efficient states in the next 5- 15 years and BC has the potential to achieve similar goals9.

While higher performance requirements have been incorporated into the most recent BC Building Code update, modelling demonstrates that energy use in buildings could be reduced much more sig-nificantly with deeper efficiency measures: globally to 33% below 2005 levels by 2050 if deep energy efficiency measures were implemented, despite a doubling of building floor area during that time in BC to 54% below 2007 levels by 2050 despite an assumed building floor area increase of 58%10. 1 Community Energy Planning: Getting to Implementation in BC (CEA and QUEST)2 MODUS August 31, 2015. Built Environment for British Columbia, Synthesis of Findings and Strategic Recommendations for REFBC and Partners.3 MODUS August 31, 2015. Built Environment for British Columbia, Synthesis of Findings and Strategic Recommendations for REFBC and Partners.4 Currently, 10 out of 27 regional districts have implemented Regional Growth Strategies, 20-year plans for housing, transportation, servicing, parks, economic development, and greenhouse gas reductions – See The Built Environment in BC – Status, Trends and Future Prospects Discussion Paper (DRAFT Aug 25 2015, MODUS)5 Frappé-Sénéclauze & Russell Pathways to Net-Zero Buildings in B.C. getting new Part 3 to Net-Zero Ready, Pembina Institute6 MODUS August 31, 2015. Built Environment for British Columbia, Synthesis of Findings and Strategic Recommendations for REFBC and Partners.7 MODUS August 31, 2015. Built Environment for British Columbia, Synthesis of Findings and Strategic Recommendations for REFBC and Partners.8 See Submissions on Climate Leadership Plan Discussion Paper from Pembina and QUEST BC; and “The Built Environment in BC – Status, Trends and Future Prospects Discussion Paper” (DRAFT Aug 25 2015, MODUS)9 Frappé-Sénéclauze, MacNab, Evolution of Energy Efficiency Requirements in the B.C. Building Code, Pembina Institute, 2015 http://www.pembina.org/pub/evolution-of-energy-efficiency-requirements-in-the-bc-building-code; See also Pembina Submission on Climate Lead-ership Plan Discussion Paper10 Frappé-Sénéclauze & Kniewasser, The Path to “Net-Zero Energy” Buildings in BC – The case for action and the role of public policy, Pembina Institute, 2015 http://www.pembina.org/reports/pembinapath-to-net-zero-energy-buildings-in-bc.pdf

A number of “pathways” to achieve these goals have been identified. For example, ultra low-energy buildings (net-zero buildings ready) are highly efficient buildings that produce as much energy as they can generate on site. The Pembina Institute has identified a multi-faceted strategy for achiev-ing Net-Zero Ready standards in new Part 3 buildings (commercial, industrial, residential buildings exceeding 3 storeys or 600 m2) Net-Zero Ready by 20301. The Light House Sustainable Building Centre has identified a ‘road map’ for working towards near carbon neutral and near net-zero energy in new and existing Part 9 residential buildings (3 storeys or less)2. As part of these strategies, it is recommended that a provincial stretch code for new buildings be established that would create a common framework for utilities, the Province, and local governments wanting to offer incentives for higher performance buildings.

Demand side management (DSM) programming undertaken in conjunction with regulated utilities is another strategy that can help maximize the deployment of energy efficiency initiatives for the building environment3.

4. Support building and community energy and emissions data collection, monitoring and dis-closure, and home energy labelling.

Reporting, monitoring and labelling on energy use would enable all sectors to gauge progress, adapt, and make informed decisions that can help drive market demand and policy changes4. For example, recent initiatives with local governments and the real estate sector suggest that home en-ergy labelling can play a valuable role in enabling realtors to be more effective in promoting home energy efficiency improvements among buyers and sellers of existing homes5. Energy auditing, me-tering and sub-metering in all building types, including Multi Unit Residential Buildings (MURBs) and commercial buildings, have also been identified as important tools for supporting improved building energy performance6.

1 Frappé-Sénéclauze & Kniewasser, The Path to “Net-Zero Energy” Buildings in BC – The case for action and the role of public policy, Pem-bina Institute, 2015 http://www.pembina.org/reports/pembinapath-to-net-zero-energy-buildings-in-bc.pdf3 Light House Sustainable Building Centre “Towards near Carbon Neutral & near Net Zero Energy Residential Buildings – A Road Map for BC” Draft for Comment September 2015. 3 See Submission on Climate Leadership Plan Discussion Paper from QUEST BC4 See Submissions on Climate Leadership Plan Discussion Paper from Pembina and QUEST BC; “The Built Environment in BC – Status, Trends and Future Prospects Discussion Paper” (DRAFT Aug 25 2015, MODUS); and Light House Sustainable Building Centre “Towards near Carbon Neutral & near Net Zero Energy Residential Buildings – A Road Map for BC” Draft for Comment September 2015. 5 City of Nanaimo Realtor Energy Efficiency Program - http://www.vireb.com/reep 6 See Submission on Climate Leadership Plan Discussion Paper from QUEST BC

5. Embed natural infrastructure and life cycle costing into accounting practices and asset man-agement systems for major infrastructure decisions. Many infrastructure projects focus on initial capital costs and simple paybacks. Using this approach, an infrastructure investment with slightly lower capital costs but high long term costs may be cho-sen over one with slightly higher capital costs, significantly lower long term costs.

Upgrading infrastructure in British Columbia requires a review of how assets are managed and ac-counted for so that the full spectrum of long term costs, such as GHG emissions, are considered in making infrastructure choices. To do this, local governments – who are faced with growing roles and responsibilities in dealing with climate related infrastructure decisions1 – need capacity and tools that support alternative models.

For example, the Town of Gibsons is developing a business case for natural infrastructure that uses the services already provided by the natural ecosystem as a large component of its municipal infra-structure, thereby reducing the need for human-made, energy intensive infrastructure2.

Life cycle costing (LCC) is another method that has been used to strengthen fiscal performance as well as contribute to a reduction in energy use and greenhouse gas emissions. It is especially use-ful for evaluating the efficiency of infrastructure and renewable energy since initial costs are often higher, but they tend to have lower operating and maintenance costs over the life of the project.

The Province could facilitate broader uptake of such practices among local governments by embed-ding them into standard accounting practices and proformas, and disseminating tools such as the infrastructure planning decision support tool developed by the Ministry of Community, Sport and Cultural Development.

1 For example, most responsibilities related to diking and land-use management in flood hazard areas shifted to local governments under the 2004 Flood Hazard Statutes Amendment Act. See also BCREA Flood Protection Resources - http://www.bcrea.bc.ca/government-re-lations/flood-protection. According to a recent report, sea level rise adaptation could cost more than $9.5 billion for hard diking areas of Metro Vancouver alone – See Natural Resources Canada, FLNRO. October, 2012, Cost of Adaptation - Sea Dikes & Alternative Strategies2 Town of Gibsons 2015. Towards an Eco-Asset Strategy in the Town of Gibsons http://www.gibsons.ca/eco-assets

The Way We Travel: People and Goods Move Efficiently and Reliably, Using

Clean Transportation.

Transportation systems are directly linked to real estate and land use patterns, and have significant impacts on access to jobs, services and amenities, and overall health and quality of life. Research indicates that changes in transportation options, funding allocations and land use patterns are needed to achieve more sustainable transportation in BC1. As illustrated in the Climate Leadership Plan Discussion Paper, existing transportation systems are responsible for about 38% of BC’s GHG emissions. If alternatives are not implemented, existing systems have the potential to incur other significant visible and hidden costs into the future2.

6. Prioritize funding for transit, transit-oriented development and electric vehicle infrastruc-ture.

Public opinion research in BC indicates a strong desire for more public transit and sustainable trans-portation in BC3. BC Transit’s most recent Strategic Plan indicates that transit ridership across BC has increased 31% from 2008-2014, an increase of about 4.5% a year, but remains a small part of BC’s mode share4.

Barriers to increased transit use include a lack of funding, hidden costs and subsidies that make driving appear more affordable than its actual costs, statutory limitations on transit funding in the Lower Mainland, priority given to major road infrastructure improvements over investments in tran-sit improvements, and low density separated land-uses in many communities that result in transit costs not being economically warranted5.

1 The Built Environment in BC – Status, Trends and Future Prospects Discussion Paper (DRAFT Aug 25 2015, MODUS)2 See Tackling Traffic: The Economic Cost of Congestion in Metro Vancouver (March 2015, CD Howe Institute in collaborative with Clean Energy Canada).

3 McAllister Public Opinion Research, August 2015, REFBC Public Opinion Research Built Environment 2015: Top Results Report 4 See The Built Environment in BC – Status, Trends and Future Prospects Discussion Paper (DRAFT Aug 25 2015, MODUS) which references BC Transit’s most recent Strategic Plan5 MODUS August 31, 2015. Built Environment for British Columbia, Synthesis of Findings and Strategic Recommendations for REFBC and Partners.

There continues to be a gap between transit planning and land-use planning that makes integration of housing and transportation difficult to overcome1. More timely information about benefits and trade-offs to the real estate sector and the broader community of transit oriented development is needed to build stronger support for complete, compact communities.

Electric vehicles also have a role to play in reducing emissions associated with existing transpor-tation systems2. As the growth of electric vehicles (EV) continues, financial support for EV charging infrastructure and purchasing incentives could help shift early market transformation into the main-stream.

7. Reprioritize the role of active transportation in an integrated transportation system. Active transportation consists of taking transit, cycling, walking, and ride-sharing. The Lower Main-land has a relatively similar geographic, weather, and population density characteristics as lead-ing cycling cities in the world (e.g. Amsterdam and Copenhagen), yet only about 5% of trips are by bicycle in Vancouver compared to 40%-50% in those cities. With a modest network of protected bike lanes (1 out of 14 streets downtown), Vancouver has doubled the number of cycling trips since 2008 (from 50,000 to 100,000 per day)3.

Barriers to increased active transportation include inconsistent funding, lack of awareness and safety concerns4. The Province should help guide the development of a network of routes, adequa-cy of routes, and separated bicycle lanes that have proven to attract more people when safety is a concern.

1 MODUS August 31, 2015. Built Environment for British Columbia, Synthesis of Findings and Strategic Recommendations for REFBC and Partners.2 See Fraser Basin Council submission on the Climate Leadership Plan Discussion Paper and MODUS August 31, 2015. Built Environment for British Columbia, Synthesis of Findings and Strategic Recommendations for REFBC and Partners. 3 O’Brien, A. British Columbia Cycling Coalition: Cycling Poll, 2013, NRG Research Group, April 22, 2013, http://bccc.bc.ca/reports/bc-cy-cling-poll.pdf4 MODUS August 31, 2015. Built Environment for British Columbia, Synthesis of Findings and Strategic Recommendations for REFBC and Partners

The Way We Work: B.C.’s Economy Remains Strong, and Jobs Continue to be

Created, While Greenhouse Gas Emissions Fall.

Reducing carbon is a co-benefit for advancing core priorities of citizens, communities and business-es and can be deployed as a competitive advantage in the global economy. Efficient land-use, high quality transportation systems and clean energy are central components for attracting and main-taining a highly educated work force and sustaining a prosperous Province in the 21st Century.

8. Align economic development in LNG with climate action goals. The Province has prioritized shale gas and LNG as economic drivers for future generations of British Columbians. Nevertheless, if shale gas development goes ahead at the scale and scope planned and the projects and policies remain unchanged, carbon pollution will increase significantly, putting the Province’s climate targets out of reach1. There is an opportunity to decrease carbon emissions and associated upstream natural gas activity caused by LNG development. For example, potential solutions could include using electricity instead of natural gas in the LNG production process, improving compressor efficiencies, reducing methane leaks and venting, and capturing and storing vented carbon dioxide from gas processing plants2.

9. Invest in industry training and capacity building, such as fostering skills and knowledge re-quired to design, build, and operate high performance buildings, renewable energy systems and green technology.

There has been a strong and broad industry shift towards an understanding of green buildings. This interest has translated into results: the Canadian Green Building Council recently described the green building market as “vigorous and growing” with estimated market share of 30-40% and antic-ipated growth to 40-50% by 20163. However, despite significant progress and innovations, dramatic scaling up and improvements in the performance of existing buildings is needed. To facilitate this, BC should invest in industry training and capacity building, such as fostering skills and knowledge required to design, build and operate high performance buildings, renewable energy systems and green technology4. A comprehensive framework that includes building construction and operations sectors is required. A network of advisors to provide technical, financial and management advice could target specific market segments.

1 For example, the natural gas sector is currently responsible for 10.2 million tonnes of carbon pollution, 17% of BC’s total output http://www2.gov.bc.ca/gov/content/environment/climate-change/reports-data/industrial-facility-ghgs/qs-and-as; Horne & MacNab, LNG and Climate Change: The Global Context, Pembina Institute, 2014 http://www.pembina.org/reports/lng-and-climate-change-the-global-con-text-pi-pics.pdf 2 Wellhead to Waterline (2014). http://www.pembina.org/reports/pi-wellhead-to-waterline-goehnerhorne-022014.pdf3 See The Built Environment in BC – Status, Trends and Future Prospects Discussion Paper (DRAFT Aug 25 2015, MODUS) which references Canada Green Building Trends: Benefits driving the new and retrofit market (2014).4 See: Submission on Climate Leadership Plan Discussion Paper from Pembina; Light House Sustainable Building Centre “Towards near Carbon Neutral & near Net Zero Energy Residential Buildings – A Road Map for BC” Draft for Comment September 2015; Centre for Interac-tive Research on Sustainability at UBC – Sustainable Building Technology Incubator Call for Partners, April 2015.

What We Value: The Cost of Climate Change for Society is Considered

Whenever British Columbians Make Important Decisions.British Columbians value where they live and many realize that the cost of climate change needs to be considered when important decisions are made about the future of our province. In a recent built environment public opinion research poll commissioned by the REFBC, 81% rated their neigh-bourhood as good or excellent1. Nevertheless, the majority (66-73%) would like to see more energy efficiency, green buildings, public transit, and sustainable transportation in their communities. Res-idents in BC are quite or very concerned with the cost of housing in their community (75%), yet they are also concerned about waste and pollution (57%), taxes (62%) and climate change (51%)2. This makes for a tough balancing act but not impossible task, when looking at the numerous priorities and initiatives that operate and are guided by provincial jurisdiction. 10. Increase and expand the carbon tax, while maintaining equity for low-income British Colum-bians, and provide incentives and financing solutions that send appropriate price signals and accelerate innovation in the energy sectors and community energy planning.

It makes sense for BC to prepare its economy for a low-carbon world and consider the longevity of further investments in fossil fuel development and infrastructure in the face of escalating climate change and growing opportunities for renewable energy. The Province instituted a price on carbon in 2008 that stimulated notable reductions in GHG emissions, and positioned British Columbia as a leading jurisdiction in North America and internationally. To build on the initial success of the car-bon tax, an increased and expanded strategy is recommended that offers strong, predictable signals for all sources of carbon pollution including the gas sectors, along with incentives and financing for complementary low-carbon initiatives, energy innovations, and implementation of community energy plans3.

1 McAllister Public Opinion Research, August 2015, REFBC Public Opinion Research Built Environment 2015: Top Results Report.2 McAllister Public Opinion Research, August 2015, REFBC Public Opinion Research Built Environment 2015: Top Results Report.3 See Submissions on Climate Leadership Plan Discussion Paper from Pembina, QUEST BC and Fraser Basin Council; see also Light House Sustainable Building Centre “Towards near Carbon Neutral & near Net Zero Energy Residential Buildings – A Road Map for BC” Draft for Comment September 2015.

About the Real Estate Foundation

The Real Estate Foundation of BC is a philanthropic organization that helps advance sustainable land use in British Columbia. It provides grants to non-profit organizations working to improve BC communities and natural environments through responsible and informed land use, conservation and real estate practices. Its funding programs support research, education, and law and policy re-form. Since 1988, the Foundation has approved more than $70 million in grants.

For more information, visit www.refbc.com

Real Estate Foundation of BC660 - 355 Burrard StreetVancouver BC V6C 2G8 Phone: 604-688-6800