As Zero Energy buildings continue to advance into the mainstream of the built environment, supported by high performance building and energy codes, city and state energy policies, utility incentive programs, and various greenhouse gas reduction targets, ILFI has launched a new pathway for certification using offsite renewables. The Offsite Renewables Exception, or alternative compliance pathway for projects seeking certification with ILFI using a renewable energy procurement strategy, was designed to address scenarios where certain building types are constrained from achieving Zero Energy performance using onsite generation. The following project types are eligible to pursue Zero Energy certification and Living Building Challenge certification using offsite renewable energy:

• Tenant improvement projects where there is no ownership interest by the project owner or developer in the core building HVAC systems, and/or the building envelope or grounds;
• Projects which even after the highest level of efficiency is attained are unable to offset their energy use onsite due to project density/height or inherently very high baseline EUI’s (such as a hospital or data center); or
• Projects that are not able to provide onsite renewables due to substantial limitations of the local grid to absorb the generated energy, or jurisdiction-related limitations (such as military restrictions on wind turbine placement).

For eligible projects pursuing certification using this exception, ILFI has worked with partner organizations and industry leaders to include the following requirements, which are designed to mirror the performance criteria of projects achieving Zero Energy from onsite renewables:

• The offsite renewables must be located in the same regional grid as the project. For projects in the US, offsite renewables located within the same NERC Interconnection regions as the project location are accepted.
• Sensitive siting criteria consistent with ILFI’s Limits to Growth imperative is required for the offsite renewable energy generation facilities.
• Legal assignment is required for ownership of the offsite renewables’ energy output using a standard agreement such as a Power Purchase Agreement (PPA), with a minimum required term length of 15 years. Tenant Improvement projects may align the PPA term length with the length of their building lease.

In addition to these requirements, ILFI’s energy program staff will review an energy model from the project team to determine eligibility and help target the highest level of energy efficiency. Projects using the Offsite Renewables Exception must also directly meter and monitor the energy production from the offsite system, provide an energy dashboard at the project site, and create a strategy to reinforce the targeted level of energy efficiency. New construction projects and existing buildings also have a minimum onsite renewable energy requirement, which is stated as follows:

• Minimum onsite renewable energy requirement:
• • For existing buildings: Projects must perform a Solar Site Assessment of the existing roof from a qualified contractor. For those portions of the roof which have a total solar resource fraction (TSRF) of 75% and greater, projects must install a minimum 75% of the maximum solar capacity (based on DC—nameplate), based on standard industry practice for PV installation and maintenance accessibility.
  • For new construction: Projects must be designed and include solar photovoltaics on a minimum of 75% of the total roof area, using standard industry practice for PV installation and maintenance accessibility within that 75%. Systems shall be designed to provide a minimum TSRF of 75% and greater.

This exciting new pathway for certification with ILFI has numerous inroads through the roll-out of innovative shared and community solar programs, 100% Renewable Commitment campaigns, and other legislative initiatives such as renewable portfolio standard targets for utilities’ fuel mix. Offsite renewables energy systems often provide cost savings through economies of scale, with project developers and municipal and utility programs exploring equitable ways to share the benefits of clean energy. Utility-scale solar PV projects, for example, have seen the largest growth when compared to all other sectors of the booming US solar energy market:

Solar Energy Industries Association (SEIA), 2017 – https://www.seia.org/solar-industry-data

Projects and partner organizations interested in pursuing certification using offsite renewables are encouraged to contact ILFI’s energy team to discuss eligibility and best practices for achieving certification with the new pathway: ZE.Support@living-future.org

Sean Bagsby currently serves as the President for the International Brotherhood of Electrical Workers (IBEW), Local 46, in Kent, WA. Mr. Bagsby also serves as a Labor Trustee for the Puget Sound Electrical Joint Apprenticeship and Training Trust (PSEJATC) located in Renton, WA, since 2008. Mr. Bagsby has been involved with several local and regional renewable energy and sustainability organizations and has been an active member of the Greater Seattle Community for over 20 years. Since 2009, Mr. Bagsby has served as the President of the Electrical Workers Minority Caucus (EWMC) Seattle Chapter. He is an appointed P.C.O. with the 47th L.D., and a Founding Member of the organization Democrats for Diversity and Inclusion (DDI).

Jack Newman: Greetings Sean. Given your long history of leadership in the energy industry and service as the elected President of the IBEW, Local 46, what is your vision for the renewable energy industry, specifically as you see it in the northwest region?

Sean Bagsby: Big picture, I see a lot of untapped potential. The solar industry has grown a lot in the Northwest, and while many people here know the challenges associated with inexpensive power, the cost of solar materials and equipment really have come down dramatically. We’re still seeing a lot of struggles regarding rebates and incentive programs, and are having a lot of battles with the typical utilities and our old-standing coal-based power that comes from the center of the US to the Northwest. We are also still seeing a lot of struggles with the wind industry, which is dominant in our region, and also with utility-scale solar projects that are coming online. There are still a lot of silos in this industry. Realizing the untapped potential in our region means thinking outside of the box; it’s the buffet approach—there’s no silver bullet when it comes to renewable energy resources.

That’s why I see continuing education and coalition building as necessary for everyone to understand the big picture solutions we need. We’re getting closer as a lot of utilities look at what their new income sources will be, especially with a general decrease in energy use as people are generating energy on their own, as home-based EV charging continues to increase, and new energy storage solutions become available. This means customers are often buying less energy from the utility, which is not going to change, so the utilities have to adapt. The answers are here, especially as storage market continues to increase and R&D advances—the innovators are also here, but we need larger tables for this conversation. Keep in mind, if we truly want what’s best for the planet, we need to get everyone at the table and we’ll all be able to get there together. I am excited with the awakening of the youth; people realize the need to face climate change and its effects—everybody is seeing it. Here in the Northwest, people get it, but we still need to focus on the solutions, not complain about the problem.

JN: You touched on a lot of really powerful examples for the Northwest. Do you see any differences, opportunities or challenges at the national and international scale? What is your vision for the renewable energy industry at that scale?

SB: Nationally, it’s the same conversation but a lot more complicated. Everyone knows our country is still very segregated in a lot of ways, and on the energy side, there are certain parts of the country where climate change deniers dominate the landscape, and coal is still “king.” In these areas, it’s a harder conversation to have, but it’s just as necessary. It’s going to take some bold, courageous leadership in order to get there, mainly to break down these silos we are dealing with. It’s going to take some serious leadership to make these changes happen and we need to set the stage for the next several hundred years.

For the big picture internationally, there’s no way around the movement to decarbonize the electric grid, although it’s going to take some serious leadership and even some sacrifice for many in the fossil fuel industry. For the benefit of the planet, and for the people that come after us, that’s where the courage comes in that I’m referring to—naturally, it’s going to take some tough conversations to move the needle.

JN: Can you talk about some of the equity issues in the clean energy economy?

SB: That’s one of the most exciting pieces about the growth in the energy industry, especially with the awakening of youth and the next generation—there is no more “box” and nothing is off the table. It’s going to take everyone to move this industry forward and everyone needs to have a place at the table; that’s the beauty of where society is right now. People are not afraid. Many people are “sick and tired of being sick and tired,” as the saying goes.

There’s no denying that underserved communities are affected by traditional energy sources, such as nuclear or oil—where they are located and the effects disproportionately trickle down to impact people of color. On the other side, people are looking for well-paid careers. It’s also true that there are fewer women and people of color involved in the energy sector, which is traditionally a Caucasian, male-dominated industry.

In Seattle, we have one of the most diverse zip codes in the nation, and we need to create space for everyone to have the opportunity to work in the energy industry.

That’s where the equity component comes into play. The approach that I take, especially with the IBEW (with its members performing electrical installations and all kinds of electrical work) is that so as long as you are a qualified, competent, and trained individual, you should have the opportunity to do this work. It doesn’t matter who someone loves, their nation of origin, their first language, how many tattoos they have, or even if they have a criminal background or history—as long as they can physically and mentally complete the job, they should be able to complete the work, and more groups need to keep that in the forefront of their hiring practices.

JN: For Zero Energy and Net Positive Energy buildings, how does an equitable workforce connect with your vision for a renewable energy powered future?

SB: That’s a nice thing I’m seeing at career fairs and as a labor trustee on our apprenticeship board. We see people, especially from the younger generation, join the electrical union, but they don’t want to work on a large concrete box downtown or a tunnel project. They’re not looking for stereotypical generic projects; instead they want to work on transformative “green” projects. They understand that there is more to electrical work than just installing solar or EV charging equipment, but they still want to work on the next generation of buildings. They want rewarding work that is helping the environment.

The next generation of Living Buildings, similar to the Bullitt Center, need to be designed to last for more than 60 years, with the ability to evolve as occupancy and technologies change. That’s what is so exciting to see with the next generation of Zero Energy buildings, people in general want to get involved. That’s honestly where I see all buildings going, and we don’t need to tear existing buildings down to get there. I see a definite increase in ZE buildings as templates are established, and as costs come down, it becomes more advantageous to the builder, owner, and operator. I have to check myself sometimes and say, “This isn’t the future. It’s the present.” although we need to create a win-win solution for all parties involved. Given the economic vitality we likely have for the next 5 – 10 years in the US, I see Zero Energy and Net Positive Energy buildings becoming the new norm for buildings, and no longer a “new and scary” prospect for developers; it will be the new way of doing business, and that’s what I look forward to.

JN: You’ve mentioned the utility sector as being a key player in the transformation of the energy industry. How can Zero Energy buildings most effectively engage the utility sector during this time of transformational change?

SB: Great, great question! One approach that I use in my work with coalition building efforts, is that it’s hard to “set the table” for these conversations with the utility sector, and everyone comes with an agenda, a way of doing business and all of their baggage. A lot of progress has been made, and there have been a lot of good conversations, but we still need more of a baseline and introductory discussions about where society is, period, and where it’s going. That way it removes the historical practices. As with all coalition building discussions, people tend to move towards where their influences lie, where their biases come from, so facilitation is key to keep the conversation on the right track and moving forward effectively. Utilities are looking at the changing density within their service territories. People’s building energy usages are changing, and society in general is more aware and contentious of their energy use and environmental impact. We now have buildings with infrastructure allowing customers to “island” themselves from the grid—either for resiliency against extreme weather events or other grid impacts—and in many places this technology is becoming a requirement.

When we look at the solutions, and in general, the utilities’ way of doing business, how can we make it work for society and the environment? For each electric service territory, how are we going to meet the demands of the people over the next 40+ years? Once we figure that out, we can determine the steps it’s going to take to get there. If we can all take the ego and personal bias out of the picture, it will be easier to stay focused on a combined agenda of serving the people and establishing a public trust for meeting their community and energy needs. We’re seeing some progress with the rest of the utilities in the Northwest looking at new, sophisticated models for how to maintain their profit generation, yet change how they provide services.

JN: You’ve also described “the awakening of the youth” as a transformational change in the clean energy economy. What is your message to the younger generation?

SB: Challenge authority—even in my union meetings I enjoy debate and tough conversation—that’s why our parliamentary process exists. The goal is to not have anyone get mad and storm out, but instead to have colorful, spirited discussions, to challenge each other, and in the end move towards a resolution.

However, young people also need to have patience. In a lot of the mentoring I deal with, young people are tired of the establishment, which reminds me of the old adage: “It’s hard to make a U-turn in a battleship.” The establishment and organized labor are like battleships. When we’re all focused on the target and moving in one direction, it’s like we’re invincible. But it’s tough to turn things around, adapt and be nimble. A lot of large industries like the utilities in the energy sector are the same way. I’d like to remind our young people that even if you’ve got good ideas, you need to stay the course. Even if you have the best idea, it takes time to implement—be prepared to stick with it. We can actually move the needle together. Sometimes it’s tough to keep the younger generation engaged to see these initiatives through to the end, and things can wither and die on the vine. We need that youthful enthusiasm to get us where we need to be, and a true coalition should have 16-year-olds and 67-year-olds.

JN: I really appreciate your thoughts on all of this, especially how the utility sector, the younger generation, and an equitable workforce can pave the way for a clean energy future. Are there any other thoughts you’d like to share?

SB: I always give a reminder that it’s going to take everybody to reach our collective goal. You and I have talked about this, Jack, that there are all these groups, committees, and industry coalitions where you start out with 20 people and end up with 12—where you’re moving along and completing some good work, but if there aren’t having those colorful conversations and possibly some disagreements, then the group isn’t big enough, inclusive enough, and you aren’t challenging the status quo. Sometimes you have to ask yourself, “Is everyone here at the table?” Remember that to innovate, you often have to make mistakes to move forward, and even stumble a little bit. If we’re all agreeing all the time, we’re not having the right conversations in my experience. Don’t take this as a threat, and try not to monopolize the power or dominate the conversation—we’re not all looking at these issues the same way. Don’t build your own silo, the person you ignore may be the person you needed most. Let’s all remember to keep the umbrella broad, and to keep challenging ourselves.

The Oregon Zoo recently opened their renewably powered Education Center, building on an exciting trend in Zero Energy project development in the Pacific Northwest. The $17 million dollar project features 760 solar photovoltaic modules, a 10,000-gallon rainwater cistern, and is designed to operate at net zero energy. The Education Center also recently won the Energy Trust of Oregon’s (ETO) High-Performance Building Award for new construction, and is registered for Zero Energy Certification.

The Education Center received key support from Portland General Electric’s (PGE) Renewable Development Fund to install its large rooftop solar array, and also qualified for incentives from the Energy Trust of Oregon’s Path to Net Zero program. ETO’s program offers financial incentives to cover the Zero Energy program’s registration and certification fees. These fees cover third-party verification of the project’s energy performance, as well as help to fund resources for residential and commercial solar projects.

The project team is a shining example of environmental stewardship, collaboration, and innovative design, and includes Fortis Construction, Opsis Architecture, Formations, Catena Consulting Engineers, KPFF Consulting Engineers and PAE Consulting Engineers.

Zero Energy Certification registered projects are eligible to receive direct-project support throughout the certification process, which requires 12-consecutive months of energy performance at net zero, without the use of combustion. It is also common for project teams to register as early as the conceptual design phase, in order to use ILFI’s programs as a framework for design, and to take advantage of ILFI’s energy program staff support throughout the certification process. Once a project’s performance period is complete, a third-party auditor is assigned for verification and certification of Zero Energy performance.

Renewable energy generation from solar photovoltaics (PV) has come a long way since its inception over 60 years ago in New Jersey’s Bell Labs, thanks to an exponential decrease in installations costs (70% reduction since 2010), increased efficiency and power density of PV modules, and support from federal, state and local incentive programs. Today, more than 250,000 Americans work in the solar industry, leading the design and installation of systems that now account for nearly 40% of all new electric generation capacity.

As the Net Zero Energy Manager at the International Living Future Institute (ILFI), I work to certify Zero Energy projects that produce 100% of their annual energy use from on-site renewables. I work in our Seattle office, which is the Living Building Challenge Certified Bullitt Center. Pioneering projects like the Bullitt Center (which features one of the city’s largest customer solar arrays [244.38 kW])  have benefited from the increased affordability of distributed solar PV, as well as from production-based incentives, net metering programs, and cutting-edge financing models to help meet their energy performance targets.

Solar adoption has been especially successful in Washington State, which receives significantly more sunlight per year than Germany—a leader in global solar capacity. A 2013 article from the Washington Post addressed this commonly misunderstood fact about US solar potential:

Just about every single region in the continental United States has greater solar potential, on average, than Germany. Yet despite those limitations, Germany has still managed to be the world leader in solar power. At the end of 2012, the country had installed about 30 gigawatts of solar capacity, providing between 3 percent and 10 percent of its electricity. The United States, by contrast, has somewhere around 6.4 gigawatts of solar capacity.

Washington State is recognized as a national leader in low-carbon hydroelectric power generation, and has produced over $60 million in local economic activity from its state-wide solar incentive program, known as the WA Renewable Energy Cost Recovery Incentive Payment program. This production-based incentive program, which allocated up to $0.54/kWh for solar customers using Washington-made equipment, faced challenges as each electric utility grew closer to their annual limit of incentive dollars they could pay out. The limit, or “Incentive Cap,” was set at just 0.5% of their annual operating income, meaning the total amount of solar incentive dollars the utility could pay out to their customers each year could not be greater than one half of one percent of the utility’s annual revenue.

Due to phenomenally successful energy conservation programs, decreased electric consumption from winter heating loads (the new NW climate normal?), and new energy-efficient technologies in the marketplace, many electric utilities face stagnant, if not decreasing, annual energy consumption-ultimately limiting the amount of money that is available for solar incentive payments. In 2015, this limitation came to a head as several of the State’s largest electric utilities “hit their cap” and were forced to reduce incentive payments to all solar customers or close their solar programs to new participants. The incentive cap phenomenon sent shock waves throughout Washington’s solar industry, as payback periods for existing customers were impacted, prospective solar homeowners faced uncertain return on investment, and solar installation contractors were forced to lay off workers. In early 2017, a statewide grassroots agency gained momentum, spreading the message to “Keep Solar Strong”.

On July 1, 2017, a new Washington Solar Incentive Bill was signed by Governor Jay Inslee, which provides solar installers, existing and future solar customers with clarity around these incentive rates, the payback period / ROI, and is an important step for the future of distributed solar energy in the Pacific Northwest region. A recent Seattle Times article breaks down the inner workings of the new solar legislation, stating: “Under the new law, any residential solar project installed by June 2021 can receive incentives until 2030. Rates are lowered year by year, with a new customer locking in to a rate based on the year a system is installed. These payments continue for up to eight years until 50 percent of the cost of the system is paid off.” The table below outlines the new incentive tiers:

For the International Living Future Institute, this updated incentive program legislation is seen as an exciting step for future projects pursuing Zero Energy Certification, Energy Petal and full Living Building Challenge certification in Washington State. Project teams can claim these incentives from onsite solar PV generation, as well as net metering credits, the federal Solar Investment Tax Credit (30% of project cost credited back on the owner’s taxes), and commercial depreciation of the array for non-residential customers. These are all key resources to help make the financial case for projects pursuing ILFI’s certification programs, which are a great way to provide third-party verification of the building’s energy performance.

Solar power, battery storage, and smart distribution control technologies can be deployed across the US power grid to support and even benefit from Zero Energy buildings and communities. Non-profits and localized organizations operating in service to the community and the environment have the opportunity to lead the way toward a fossil fuel–free future. In Washington State, organizations like Spark Northwest (formerly known as NW SEED), Solar Washington, and carbon-neutral electric utilities like Seattle City Light have set their sights on equitable access in the clean energy economy. City Light, for example, recently launched a Solar Grant Program, providing important funds for nonprofits to go solar. With the current portfolio of resources available to power your building with renewable, solar energy, what (or who) is stopping the US from achieving the same level of climate leadership as Germany?