The state Department of Environmental Conservation (DEC) has issued its long-awaited draft rules for the state's "green building" tax credit. This $25 million tax incentive program was first approved by the Legislature in 1999, but has yet to be implemented.
Public comments on the draft rules will be accepted until October 15, and public hearings have been scheduled for October 1 in New York City and October 10 in Albany.
The 157-page proposal sets forth extensive criteria for qualifying as a "green" buildings and/or tenant space, with specific rules for energy use, indoor air quality, building materials, HVAC systems and refrigerants and water usage. The rule also establishes specific procedures for the commissioning and monitoring of "green" buildings, as well as application procedures.
Under the program, tax credits can be awarded for whole buildings, "base" buildings (i.e., a main structure and a central plant), or tenant space. The $25 million in credits available would be spread out over a 10-year period.
"This is the most aggressive 'green building' program in the U.S., and the rule sets a very high bar," said Ken Pokalsky, director of environmental and regulatory affairs for The Council. "It remains to be seen how receptive developers and tenants will be to the program given the extensive eligibility criteria."
Pokalsky, who served on the state advisory committee for this rulemaking, also raised concerns about the proposed building material standards.
"We continue to question the way this rule treats specific building materials and products," Pokalsky said, citing concerns about insulation, floor coverings, HVAC equipment and others. "In a number of cases, the rule fails to consider overall environmental benefits and impacts of building materials in determining what is and is not a 'green' product."
The impact of this rule extends beyond the tax credit program, Pokalsky added, since, by Executive Order, the Governor has directed state agencies to follow this criteria "to the maximum extent practicable" in the construction of new state buildings.