2008 TGS Cost Benefit Analysis
Total Page:16
File Type:pdf, Size:1020Kb
Cover Pictures (City of Toronto Archives) TOP: Transformative construction underway to achieve an urban development vision. BOTTOM: Pedestrian’s view of one among countless social events enjoying the amenities of the new City Hall. In September 1957, then Mayor Nathan Phillips issued guidelines for an international design competition for a new City Hall on the northwest corner of Queen and Bay. A total of 510 designs were received from 42 different countries. The winner of the competition was Finnish architect Viljo Revell. Today, Toronto is unimaginable without its modern City Hall and looking back at what was then a controversial and pivotal moment in the history of Toronto, Nathan Phillips’ vision has been vindicated by every public event that graces the square that now bears his name. The Toronto Green Development Standard represents another threshold in the evolution of Toronto. Its leaders and citizens must choose between business as usual and a green development future. What do we imagine future generations would have us choose today? Opening ceremonies for New City Hall and Square, September 1965. Photographer: Fire Department. City of Toronto Archives. © Ted Kesik and Anne Miller, University of Toronto, 2008. FINAL REPORT TORONTO GREEN DEVELOPMENT STANDARD COST - BENEFIT STUDY Prepared for: Policy and Research, City Planning City of Toronto By: Ted Kesik and Anne Miller October 2008 Funded by: Final Report: Toronto Green Development Standard Cost-Benefit Study This report is based on a cost-benefit study of the Toronto Green Development Standard funded by the Ontario Centres of Excellence and conducted on behalf of Policy and Research, City Planning, City of Toronto. The views expressed herein are those of the authors and the study team and do not necessarily represent the views of the City of Toronto, the Ontario Centres of Excellence, the Federation of Canadian Municipalities or any members of the Steering Committee and their respective organizations. ii October 2008 Acknowledgements The authors of this report would like to gratefully acknowledge the various individuals and organizations and their contributions to this cost-benefit study: STUDY CO-ORDINATORS CITY OF TORONTO Joe D’Abramo, Manager, Policy and Research, City Planning Jane Welsh, Acting Project Manager, Policy and Research, City Planning ONTARIO CENTRES OF EXCELLENCE Don Lewis, Director, Business Development STUDY TEAM LANDSCAPE AND URBAN SITE TECHNOLOGIES Pierre Bélanger Faculty of Architecture, Landscape, and Design University of Toronto ENVIRONMENTAL ECONOMICS Ian H. Rowlands Department of Environment and Resource Studies University of Waterloo INFORMATION DESIGN / TECHNOLOGY TRANSFER Angela Iarocci and Clair Ironside School of Animation, Arts, and Design Sheridan Institute of Technology and Advanced Learning ENERGY PERFORMANCE SIMULATION Curt Hepting and Chris Jones EnerSys Analytics Inc. Vancouver BC and Toronto ON CONSTRUCTION COST CONSULTANTS Mel Yungblut , Malcolm Yates, and David Montgomery A.W Hooker Associates Ltd., Quantity Surveyors Oakville, Ontario Daniels Faculty of Architecture, Landscape and Design University of Toronto iii Final Report: Toronto Green Development Standard Cost-Benefit Study STEERING COMMITTEE Mr. Alex Speigel Ideas Development Inc. Toronto, Ontario Dr. Ron Dembo and Mr. Robert Ouelette zerofootprint Toronto, Ontario Mr. Mark Salerno Canada Mortgage and Housing Corporation Mr. Doug Webber Halsall Associates Toronto, Ontario Mr. Ron Rivet True North Management Inc. Mississauga, Ontario Mr. Stephen Upton and Mr. Steve Daniels Deltera Inc. Toronto, Ontario Mr. Dennis Swartz City Of Toronto Mr. Bob Blazevski Minto Urban Communities Inc. Toronto, Ontario Mr. Rob McMonagle City of Toronto iv October 2008 Table of Contents Executive Summary ……………………..……………………………...….. vi Background ……………..……………………………………………………. 1 Scope and Objectives ………………………………………………….. 2 Context for Green Development in Toronto ……..….……..………… 3 Study Methodology and Outline ………………………..……………... 6 Green Development Trends and Related Cost-Benefit Studies ….… 7 Green Development Trends …………………………………………… 8 Related Cost-Benefit Studies ………………………………………….. 11 Summary of Green Development Costs and Benefits ……………… 32 Economic Cost-Benefit Assessment Methods ………………….……... 35 Internal Rate of Return Measure ……………………………………… 37 Simple Payback and Payback Measures ……………………………. 38 Life Cycle Costing ………………………………………………………. 39 Building Energy Conservation Measures ………………………..…….. 43 Building Statistics and Forecasts ……………………..…....…..…...... 44 Multi-Unit Residential Buildings (MURBs) …………..….....…........... 46 Baseline MURB Building ……………………………………..…….. 47 MURB Energy Conservation Cost-Benefit Analysis …………….. 49 Synopsis for MURBs (Condo Buildings) ………………….….….. 57 Office Buildings …………………………………………...………..…… 59 Baseline Office Building ………….…………………...….….......… 60 Office Building Energy Conservation Cost-Benefit Analysis ….... 61 Synopsis for Office Buildings …………………….….……...…...… 73 Retail Buildings ….........................................................................… 74 Baseline Retail Building ………….…………………..….......……. 76 Retail Building Energy Conservation Cost-Benefit Analysis …… 77 Synopsis for Retail Buildings ……………………..…………....….. 82 Low-Rise Residential Buildings …............................................….… 83 Review of Green Housing Programs in Canada ………………… 83 Review of Low-Rise Housing Cost-Benefit Studies ……….……. 87 Synopsis for Low-Rise Residential Buildings …………...….….... 92 Urban Site Technologies ….............................................................…… 93 Stormwater Management ……….…………………………..…………. 95 Water and Sewage ….…..………………..…………………..……..…. 99 Solid Waste Management ….…..………..………………………….…. 108 Renewable and District Energy Systems ….…..……………….……. 116 Renewable Energy Market ….…………..…………………...……..…. 145 Artificial Illumination ………………………………….…………………. 152 Urban Site Technologies Synopsis …………………………………... 157 Green Development Innovation Opportunities ……..…………….….... 159 Technology Innovation Opportunities ………….........………..……... 161 Service Innovation Opportunities ……….………….……..………..…. 165 Innovation Issues …………………………………………………….…. 167 Economic Issues ………………………………………………………... 168 Green Development Cost-Benefit Matrix ………….….………….……... 171 Monetized Costs and Benefits …………...……........…………..……. 172 Intangible Costs and Benefits ……………….……………......………. 212 Sustainability Drivers and Green Development ……………....…….. 213 Conclusions and Recommendations ………………….……….........….. 221 Bibliography …………………………………………………………….……. 229 Appendix A – MURBs Energy Performance Analysis Report Appendix B – Office Energy Performance Analysis Report Appendix C – Retail Energy Performance Analysis Report Appendix D – Urban Stormwater Economics Appendix E – TGDS Green Key Rating System Web-Based Assessment Tool Appendix F – City of Toronto Cost-Benefit Matrix Daniels Faculty of Architecture, Landscape and Design University of Toronto v Final Report: Toronto Green Development Standard Cost-Benefit Study Executive Summary This cost-benefit study represents part of a larger process to develop, implement and evolve the Toronto Green Development Standard (TGDS). The study report is aimed at practicing professionals and persons knowledgeable in the fields of urban development and green building technologies, but also attempts to convey its findings in terms that are accessible to citizen engagement. The Toronto Green Development Standard is among a number of instruments being fashioned by the City of Toronto to address negative impacts associated with urban growth, but it is not intended to address all issues related to sustainable development. It has instead been based on a bio-regional approach to green development that recognizes the unique ecosystem that Toronto shares with the numerous communities that border the Great Lakes. In response to these bio-regional factors, the TGDS is premised on the following key environmental drivers: . Better air quality; . Reduced greenhouse gas emissions and urban heat island effects; . Greater energy efficiency; . Improved water quality and water efficiency; . Less solid waste; . Protection of the urban forest and wildlife habitat; and . Reduced light pollution. The City of Toronto received a grant from the Federation of Canadian Municipalities’ Green Municipal Fund to undertake a feasibility study of green development, including a cost-benefit analysis of the Green Development Standard. Later, the City along with the University of Toronto was able to obtain funding from the Ontario Centres of Excellence. This study commenced in the summer of 2007 and targeted a report to City Council in early 2008. Within its defined scope, the study has attempted to address the following objectives: . Exploration of the issues and trends in green development across the Greater Toronto Area; . Review of past and ongoing cost-benefit studies of green development to gain insights and compare findings; . Completion of a cost-benefit analysis for the Toronto Green Development Standard according to various economic perspectives corresponding to builders/developers, consumers and society; . Identification of the key opportunities for the development (or improvement) of products and services that enable cost effective green development while improving the competitiveness of Ontario’s building industry; . Dissemination of up to date and broadly accepted cost-benefit analyses of the economic and environmental impacts associated with implementation