Use of Carbon Offsets for Green Building Incentives

TOWN OF VIEW ROYAL COMMITTEE OF THE WHOLE REPORT

TO: Committee of the Whole DATE: June 1, 2018 FROM: Lindsay Chase, Director of Development Services MEETING DATE: June 12, 2018

Use of Carbon Offsets for Green Building Incentives

RECOMMENDATION

THAT the report dated June 1, 2018 from the Director of Development Services dated June 1, 2018 be received for information.

CHIEF ADMINISTRATIVE OFFICER’S COMMENTS

I concur with the recommendation.

DIRECTOR OF FINANCE’S COMMENTS

I concur with the recommendation.

PURPOSE OF REPORT

To consider the feasibility of using carbon offsets for a Green Building Incentives Program.

BACKGROUND

At its October 18, 2016 meeting, Council directed that staff prepare a report regarding the potential for a Green Building Incentive Program to be funded through carbon offsets required to be purchased by the Town of View Royal. Over the last few years, the value of carbon offsets has been minimal ($1,000 or less annually). In 2018, due to a change in the calculation relating to organic materials, the amount was just under $3,000.

DISCUSSION

The Climate Action Plan specifies various ways that a municipality can purchase carbon credits in order to achieve carbon neutrality for its own operations. These include purchasing credits from a qualified organization, which is the most straight-forward method of achieving carbon neutrality and the method View Royal has used to date.

Another permitted method would be implementing a program that funds energy efficiency retrofits or fuel switching for existing buildings. This type of program involves a significant administrative burden to not only market and manage the program and fund the building improvements but also calculating and tracking the GHG emission reductions for reporting purposes (see attached extract from the Becoming Carbon Neutral: Guidebook for BC Local Governments Appendix 2).

Recently, the province announced phased implementation of the Step Code for British Columbia which may assist in meeting Council’s objectives of reducing View Royal’s community carbon footprint.

BUDGET

The direct and administrative costs of a town-administered green building incentive program are highly likely to far exceed the current cost to achieve corporate carbon neutrality. Should Council wish to explore a program of this nature it would need establish clear measurable objectives of the program and identify an additional funding stream to do so. Staff estimate that a new half time position would be needed to administer such a program to the standard required in the Guidebook, and that Council would need to consider the dollar value of subsidies for this purpose in the budget process.

Currently the cost to achieve carbon neutrality is minimal for View Royal ($3,000 or less annually). Staff will continue to seek ways to reduce carbon emissions through spending choices, waste reduction and other opportunities as they present themselves.

OPTIONS

• If Council wishes to consider the development of a green building incentive program, this should be referred to the 2019 budget process for further costing and exploration.
• If Council is not interested in pursuing this program at this time, an appropriate resolution is to receive the report for information.

RECOMMENDATION

THAT the report dated June 1, 2018 from the Director of Development Services dated June 1, 2018 be received for information.

SUBMITTED BY L. Chase, MCIP, RPP Director of Development Services

REVIEWED BY K. Anema, Chief Administrative Officer

Attachments

1. Green Building Program Information Requirements