Specialized 'stretch code' for energy efficiency in buildings worries local developers

Editor's note: The specialized stretch code does not pertain to major rehabilitations, as an earlier version of this story reported.

WORCESTER – A new building code could land in Worcester, potentially driving up costs for developers. The result could be a drag on the number of projects in the city, both residential and commercial.

It’s called the specialized stretch code, and city officials are expected to ask the City Council to adopt it. That was supposed to happen Tuesday, but John Odell, the city's chief sustainability officer, said late Friday afternoon that the public presentation will occur later this month.

The state's specialized stretch code is an opt-in. That means a city or town can adopt it by a vote of a city council or select board. So far 18 communities have adopted the code, including Boston and Cambridge, but none in Central Massachusetts.

It’s anticipated the Worcester City Council won’t vote right away after Odell's department makes its pitch, as the request will likely require a council subcommittee review, followed by a public hearing.

What is the code?

It's essentially a stricter set of regulations that build upon the state’s existing codes for making buildings more energy-efficient. If approved, it would apply to new construction of both residential and commercial properties.

A linchpin of the new specialized stretch code is enhanced electrification of buildings. Electrification to replace fossil-fuel heating and cooling systems with more energy-efficient heat pumps and other technologies is one strategy to meet a state law that requires Massachusetts to achieve net zero carbon emissions statewide by 2050.

Buildings major contributor to climate change

Roughly one-third of carbon emissions in Massachusetts emanate from the state’s 2 million existing buildings, according to the Massachusetts Climate Action Network. In Worcester, 65% of the city emissions come from all buildings, said Odell.

Odell acknowledged some pushback to the specialized stretch code could come from developers.

“Any time you change things, there is going to be some pushback, which is understandable,” said Odell. “Changing systems can be a challenge, but we think there’s a lot of support in the community for this.”

Don’t count Brian Allen among them.

Allen is the founder and owner of WorcesterMulti, a buyer and seller of owner-occupied and investment properties since 1999. As Allen sees it, developers should decide if they want to electrify their buildings, not the City Council.

“The choice should be made by the person whose expenditure is their own personal money,” said Allen. “I don’t think the city should impose rules on people. Imposing rules limits choice and the number of potential developers.”

Developer Charles “Chip” Norton, owner of the Mercantile Center, where the Telegram and Gazette leases office space, noted upfront electrification costs must result in cost savings on the back end to make it work.

“If the savings payback is reasonable on these sort of things, then it’s important to do. It comes down to the financial impacts,” said Norton.

Added costs, but also more benefits

Added expenses could reach up to 3% of the total project cost on a developer's first project, said Odell. However, Odell noted that once developers learn how to incorporate the new specialized stretch code into subsequent projects, then they'll likely see cost savings that outstrip any additional upfront costs.

The state Department of Energy Resources said there will be significant cuts in emissions and considerable cost savings for developers:

• The prior stretch and specialized stretch codes will cut 500,000 tons of greenhouse gas emissions by 2030, along with $21 billion in operations and construction cost savings over the life of the buildings.

• Mass Save rebates and federal tax credits for different building sizes will more than cover added costs for all electric buildings. The Department of Energy Resources estimates approximately $600 million in Mass Save incentives for new construction over the next decade. That amount includes projects that fall under the state's base energy code and in communities that adopted the stretch code and the specialized stretch code. Worcester adopted the stretch code in 2010.

As Odell sees it, the top benefits of the specialized stretch code include:

• Less air flow in and out of buildings that makes heating and cooling more energy-efficient

• Air-source and ground-source heat pumps will drastically cut carbon emissions

• Better insulated walls will contribute to greater heating and cooling efficiency

Allen doesn’t argue that improved technologies to achieve more energy-efficient buildings will win out in the end. But he doesn’t want to see the city telling developers how to construct their buildings. Instead, he supports a carbon tax that punishes building owners who pollute the environment.

If the City Council does opt-in to the specialized stretch code, Allen sees property owners passing their extra costs to renters, driving up what is already a overheated rental market.

Don't forget about enforcement

Enforcement is another issue. It’s one thing to adopt a code, it’s another to enforce it.

Odell noted more city fire safety and inspectional services staff will likely be needed to ensure developers and property owners adhere to the new code, if the city adopts it.

He didn’t have a dollar amount for how much more enforcement could cost, but it wouldn’t be paid by city taxes. State and federal grants could be a source, said Odell.

Details of specialized stretch code

The details can get in the weeds, but the big picture is an emphasis on heating, cooling and other systems that run on electricity, not fossil fuels.

Some of the specifics include:

● Buildings using fossil fuels must be prewired for full conversion to electric and install on-site solar where feasible.

● Prewiring is required for electric vehicle charging stations, including a minimum of 20% of new spaces and one space per home in one- and two-family homes.

Odell sees many advantages if Worcester takes on the specialized stretch code, including greater energy efficiency that is good for the environment, and cost savings for developers that will make their buildings better for their balance sheets in the long run.

“All the plusses we think outweigh the smaller negatives," he said.

Contact Henry Schwan at henry.schwan@telegram.com. Follow him on Twitter: @henrytelegram.

This article originally appeared on Telegram & Gazette: Worcester developers wary over Mass. specialized stretch code