The University of Western Ontario Michael Buzzelli, Department of Geography 1 Green building: is the housebuilding industry in the black or in the dark?

The University of Western Ontario

Michael Buzzelli, Department of Geography1

Green building: is the housebuilding industry in the black or in the dark?

Michael Buzzelli, The University of Western OntarioOriginally presented to Department of Urban Studies, University of Glasgow

30 May 2008

The University of Western Ontario

Michael Buzzelli, Department of Geography2

Green Building context in Canada and the housebuilding/development industry

Answering the GB call – three opportunity areas

1. Emergent GB standards

2. Partnership is necessary

3. Industrialisation (Modern Methods in Construction, MMC)

Concluding remarks

Outline

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Michael Buzzelli, Department of Geography3

3

Environment is on the public agenda…

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Michael Buzzelli, Department of Geography4

“.[We are] unlikely to change peoples hearts and minds, unlikely to suddenly see the benefits of sustainable forms if they conflict with consumer preferences.”

Jenks and Dempsey, 2007

Environment is on the public agenda…

…but confusion remains

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Michael Buzzelli, Department of Geography5

Barriers to green building (Yudelson, 2008)

– Cost

– Consumer resistance

– ‘Internal change’

• A range of stakeholder groups

• The housebuilding industry

Context

The University of Western Ontario

Michael Buzzelli, Department of Geography6

The (building) industry is composed of many small players.

Developers are fewer but the industry is nonetheless competitive

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Michael Buzzelli, Department of Geography7

[Canadian] housebuilding broadly conforms to a competitive model of industry structure

How will builders/the industry respond to the green building imperative?City-regions hold the keys to innovation and implementation

Context

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Michael Buzzelli, Department of Geography8

At the dwelling unit level, the industry has in fact outperformed most sectors of the economy

How? Industry response to GB imperative

1. GB standards

2. Cooperation/partnership is necessary

3. Industrialisation (MMC)

Answering the GB call

The University of Western Ontario

Michael Buzzelli, Department of Geography9

The University of Western Ontario

Michael Buzzelli, Department of Geography10

CHBA briefing report

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Michael Buzzelli, Department of Geography11

1. GB standards

– There are ~ 12 standards in Canada (LEED, R2000, Green Home, Energy Star…), many incentive programmes for green new build and retrofit, and demonstration projects

– R2000 – CHBA and NRCan programme since 1981• Voluntary (an ‘innovation engine’)• Only about 10,000 homes thus far, but...• Requires a performance audit/air leakage test and should

achieve 80 on the EnerGuide rating system

– The building industry resists a mandated single standard

Answering the GB call

The University of Western Ontario

Michael Buzzelli, Department of Geography12

CHBA briefing report

The University of Western Ontario

Michael Buzzelli, Department of Geography13

On R2000 – some Key Informant interview text

“…need to choose champions well so that he will be copied. In homebuilding, none want to be first, all want to be second...R2000 became the vehicle by the ‘cloning process’ – copying the ‘spec’ without the soft costs and assessment.” [KI2]

“practical people adapting a research-based building standard” [KI2]

Answering the GB call

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Michael Buzzelli, Department of Geography14

Challenges/opportunities?

“unfortunately, and this is what I want to get away from, is that the code is going to get more restrictive…Every time somebody tries to be proactive it becomes a new example of being prescriptive and it generates reaction…Take the example of LEED. CaGBC never wanted it to be minim standard but a reward yet now everyone is building to that minimum standard…I envision in the next 10 years those requirements will become more prescriptive as opposed to some developers getting ahead of the curve and reward them. And they [builders] become reactive.” [KI3]

Answering the GB call

The University of Western Ontario

Michael Buzzelli, Department of Geography15

2. Cooperation/partnerships

Example: Riverbend Heights in London Ontario

– Features a community energy system including• geothermal heating/cooling• biogas heating • and potentially asphalt solar collectors

– Spatial externalities and NIMBYism?

– Risk and liability?

Answering the GB call

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Michael Buzzelli, Department of Geography16

Riverbend

Answering the GB call

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Michael Buzzelli, Department of Geography17

Answering the GB call

Geothermal heating system

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Michael Buzzelli, Department of Geography18

Comparison of Business as Usual (BAU) vs. Near-Zero Community Energy System

BUILDING LOADS:*BAU

Design

Integrated CES

Design

Change

(MWh)

Change

(%BAU)

Heating Loads (MWhthermal) 1,328 1,328 0 0%

Cooling Loads (MWhthermal) 853 853 0 0%

EXTERNAL ENERGY INPUT:

Natural Gas Input (MWh) 1,897 201 -1,696 -89%

Grid elect input (MWh) 284 124 -160 -56%

GHG EMISSIONS:

Equivalent emissions (tCO2e) 466 65 -401 -86%

•Both Community Designs were based on EnergyStar® & LEED® qualified buildings•This and prior two slides original presented by Jamie Skimming City of London, at a community• green development forum in March 2008

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Michael Buzzelli, Department of Geography19

Riverbend Heights

Estimate $5 million to build– Note: avoids unit heating/cooling equipment costs

Cost to supply energy twice that of natural gas (at today’s prices…)– But 30% cheaper than electricity

Accepted (from FCM)– $500,000 grant– $500,000 loan

Sifton, London District Energy interested in project

Answering the GB call

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Michael Buzzelli, Department of Geography20

Michael Moldenhauer is President of Building Industry and Land Development Association (BILD) In Homes Magazine (GTA)

What about risk and liability?

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Michael Buzzelli, Department of Geography21

3. Industrialisation (Modern Methods in Construction, MMC)

Answering the GB call

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Michael Buzzelli, Department of Geography22

Site visit – Universal Forest Products, near London ON

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Michael Buzzelli, Department of Geography23

http://youtube.com/watch?v=ZrnI9TSojCc&feature=related[“Mattamy, factory”]

Factory prefabrication has been tried and often failed in North America over the last century but there is little question around the quality of construction attributed to climate control and assembly-line methods. This includes superior building envelope design, fit and consequently energy/environmental performance.

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Michael Buzzelli, Department of Geography24

In order to move GB forward there is a need for

Partnership - risk sharing and NIMBYism

MMC/industrialisation – what about market cyclicality?– Perhaps not at the scale shown but certainly lessons can

be learned

Building code is regarded as the bedrock of a ‘managed market’ approach– GB standards are solely innovation engines– No single system should be mandated– If anything, the building code should identify

performance levels and allow the market to sort out how to achieve

Concluding remarks - interpretation

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Michael Buzzelli, Department of Geography25

New build versus renovation [“resale is huge” KI3]

Labour and re-training – new products and processes

Municipalities, lenders – project approvals and capital

Affordability [over and above life cycle costing]

What about the community scale? [journey to work]

Policy co-benefits [e.g. health]

Concluding remarks – other issues