Accelerating Market Transformation for High-Performance Building Enclosures State of market, policy developments, and lessons learned from the Passive House movement Tom-Pierre Frappé-Sénéclauze | Dylan Heerema | Karen Tam Wu September 2016 photo: Sonia photo: Zouari Accelerating Market Transformation for High- Performance Building Enclosures State of market, policy developments, and lessons learned from the Passive House movement Tom-Pierre Frappé-Sénéclauze Dylan Heerema Karen Tam Wu September 2016 Editor: Roberta Franchuk and lessons learned from the Passive House movement. The Pembina Institute, 2016. ©2016 The Pembina Institute The Pembina Institute All rights reserved. Permission is granted to 219 19 Street NW reproduce all or part of this publication for non- Calgary, AB commercial purposes, as long as you cite the Canada T2N 2H9 source. Phone: 403-269-3344 Recommended citation: Frappé-Sénéclauze, Additional copies of this publication may be Tom-Pierre et. al. Accelerating Market downloaded from the Pembina Institute website, Transformation for High-Performance Building www.pembina.org. Enclosures: State of market, policy developments, Pembina Institute Accelerating Market Transformation for High-Performance Building Enclosures | ii About the Pembina Institute The Pembina Institute is a national non-partisan think tank that advocates for strong, effective policies to support Canada’s clean energy transition. We employ multi-faceted and highly collaborative approaches to change. Producing credible, evidence-based research and analysis, we consult directly with organizations to design and implement clean energy solutions, and convene diverse sets of stakeholders to identify and move toward common solutions. ————————————————— pembina.org ————————————————— twitter.com/pembina facebook.com/pembina.institute Acknowledgements The authors would like to thank Nicole Flanagan (2016 Loran Scholar intern) and Bassam Javed (2015 PICS intern) for their invaluable research assistance in the preparation if this report. These reviewers provided comments on the final draft of this report; we are grateful for their insight: • Rob Bernhardt, Passive House Canada • Christina Bollo, University of British Columbia • Patrick Enright, City of Vancouver • Graham Finch, RDH Building Science Inc. • Mark Frankel, New Buildings Institute • Katrin Klingenberg, Passive House Institute US • Micah Lang, City of Vancouver • Chris Mattock, Habitat Design + Consulting Ltd. • Monte Paulsen, Red Door Energy Design Ltd. • Jieying Wang, FPInnovations The authors would also like to thank the 21 practitioners and policy makers who provided insights and perspective on the market during interviews conducted in August 2015; their names are listed in Appendix A. Pembina Institute Accelerating Market Transformation for High-Performance Building Enclosures | iii This study was made possible by a Carbon Neutral Cities Alliance Innovation Fund grant from the Urban Sustainability Directors Network and a Greenest City grant from the Vancouver Foundation. Pembina Institute Accelerating Market Transformation for High-Performance Building Enclosures | iv Accelerating Market Transformation for High- Performance Building Enclosures State of market, policy developments, and lessons learned from the Passive House movement Contents Executive Summary ............................................................................................................. 1 1. Introduction ................................................................................................................. 11 2. State of the market ..................................................................................................... 19 2.1 State of the passive building stock .................................................................... 20 2.2 Design challenges for non-domestic buildings ................................................ 23 2.3 Certified practitioners and networks ................................................................ 26 2.4 Supporting public policies .................................................................................. 30 2.5 Conclusion ............................................................................................................ 33 3. Energy case for passive design ................................................................................. 34 3.1 Energy performance of certified LEED projects ............................................... 37 3.2 Energy performance of passive buildings ........................................................ 43 4. Incremental costs ........................................................................................................ 52 Pembina Institute Accelerating Market Transformation for High-Performance Building Enclosures | v 5. Moisture control in highly insulated buildings ........................................................ 60 5.1 Moisture in building enclosures: the basics ..................................................... 63 5.2 Wood frame construction ................................................................................... 65 5.3 Non-combustible construction .......................................................................... 70 5.4 Conclusion ............................................................................................................ 71 6. Cooling and the risk of overheating ......................................................................... 75 6.1 Passive cooling strategies ................................................................................... 78 6.2 Standards for thermal comfort .......................................................................... 81 6.3 Thermal comfort in certified Passive Houses: monitoring studies ................ 82 6.4 Conclusion ............................................................................................................ 85 7. Part 1: Conclusion ....................................................................................................... 87 8. Using public policy to address barriers .................................................................... 92 8.1 Models of transition ............................................................................................ 93 9. Political vision and regulation ................................................................................... 96 9.1 Public buildings procurement policies .............................................................. 97 9.2 Land use changes and rezoning ...................................................................... 100 9.3 Zoning relaxations for thick walls .................................................................... 102 9.4 Streamlining permitting and inspection ......................................................... 103 9.5 Passive House requirements in building regulations .................................... 103 10. Industry capacity ..................................................................................................... 107 10.1 Networks and technical support .................................................................... 108 10.2 Informal networks of practitioners ............................................................... 109 10.3 Online resources .............................................................................................. 110 10.4 Airtightness testing requirements ................................................................. 111 11. Business case and financing .................................................................................. 114 11.1 Energy labelling and benchmarking .............................................................. 115 11.2 Design competitions to increase demand and visibility ............................. 117 11.3 Direct and indirect subsidies .......................................................................... 119 11.4 Financing ........................................................................................................... 120 Pembina Institute Accelerating Market Transformation for High-Performance Building Enclosures | vi 12. Supply chain ............................................................................................................ 125 12.1 Predictability of demand and component incentives ................................. 126 12.2 Industry partnerships ...................................................................................... 127 13. Public and industry awareness of passive design and benefits ....................... 128 13.1 Energy labelling ................................................................................................ 128 13.2 Awareness campaigns .................................................................................... 129 14. Quality assurance ................................................................................................... 131 14.1 Passive House certification ............................................................................. 131 14.2 Performance bonds ......................................................................................... 132 14.3 Monitoring studies and monitoring of market through benchmarking ... 132 15. Part 2: Conclusion ................................................................................................... 133 Appendix A. Interviewees ............................................................................................. 137 Appendix B. Passive