The Commonwealth of Massachusetts
--------------------------------
In the Year Two Thousand and One
-------------------------------- AN ACT ESTABLISHING A GREEN BUILDING TAX CREDIT
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Declaration of policy and statement of purposes.
It is the policy of Massachusetts to encourage the construction, rehabilitation and maintenance of buildings in this state in such a manner as to:
promote better environmental standards for
the construction, rehabilitation and maintenance
of buildings in the state;
improve energy efficiency and increase
generation of energy through renewable and clean
energy technologies;
increase the demand for environmentally
preferable building materials, finishes-and
furnishings;
improve the environment by decreasing the
discharge of pollutants from buildings;
create industry and public awareness of new
technologies that can improve the quality of life
for building occupants; and
improve the health and productivity of
building occupants.
In order to facilitate the foregoing policies, the legislature hereby creates a business and personal income tax credit to promote the construction, rehabilitation and maintenance of buildings that meet the criteria set forth in this act.
SECTION 2.Tax Law Changes.
The tax law is amended by adding a new subsection (1) to chapter 62, section 6 to read as follows:
(a) ALLOWANCE OF CREDIT.
(1) GREEN BUILDING CREDIT. A taxpayer subject to tax under this chapter shall be allowed a green building credit
against such tax, pursuant to the provisions referenced in
subdivision (F)of this section. Provided, however, no credit shall be allowed under this section unless the taxpayer has complied with, the applicable requirements of paragraph two of subdivision (D) of this section (relating to reports to the Division of Energy Resources, hereinafter referred to as DOER). The amount of the credit shall be the sum of the credit components specified in paragraphs two through seven of this subdivision. Provided, however, the
amount of each such credit component shall not exceed the limit set forth in the initial credit component certificate obtained pursuant to subdivision (C) of this section. In the determination of such credit components, no cost paid or
incurred by the taxpayer shall be the basis for more than one such component.
(b)Credit to successor owner. If a credit is allowed to a
building owner pursuant to this subdivision with respect to
property, and such property (or an interest therein) is sold, the credit for the period after the sale which would have been allowable under this subdivision to the prior owner had the property not been sold shall be allowable to the new owner. Credit for the year of sale shall be allocated between the parties on the basis of the number of days during such year that the property or interest was held by each.
(c) Credit to successor tenant. If a credit is allowed to a
tenant pursuant to this subdivision with respect to
property, and if such tenancy is terminated but such
property remains in use in the building by a successor
tenant, the credit for the period after such termination which would have been allowable under this subdivision to the prior tenant had the tenancy not been terminated shall be allowable to the successor tenant. Credit for the year of
termination shall be allocated between the parties on the
basis of the number of days during such year that the
property was used by each.
(d) Notwithstanding any other provision of law to the contrary, in the case of allowance of credit under this section to a successor owner or tenant, as provided in subparagraph (b)or (c) of this paragraph, the commissioner of DOER shall have the authority to reveal to the successor owner or tenant any information, with respect to the credit of the prior owner or tenant, which is the basis for the denial in whole or in part of the credit claimed by such successor owner or tenant.
(2) GREEN WHOLE-BUILDING CREDIT COMPONENT. The green
whole-building credit component shall be equal to the applicable percentage of the allowable costs paid or incurred by the taxpayer (whether owner or tenant), for either the construction of a green building or the rehabilitation of a building which is not a green building to be a green building. Provided, however, the credit component shall not exceed the maximum amount specified
in the initial credit component certificate. The applicable percentage shall be 1.4 percent, except that if the building is located in an economic development area, the applicable percentage shall be 1.6 percent. The credit component amount so determined shall be allowed for the credit allowance year, but only if (a)the taxpayer has obtained and filed both an initial credit component certificate and an eligibility certificate issued
pursuant to subdivision (C) of this section,
(b) a certificate of occupancy for the building has been issued and (c)where the credit allowance year is a year described in subparagraph (b) of paragraph (2-a) of subdivision (B) of this section, the green building or rehabilitation remains in service during such year.
Such credit component amount shall be allowed also for each of the next four succeeding taxable years with respect to which the taxpayer has obtained and filed an eligibility certificate pursuant to subdivision (C) of this section.
Provided, further, the allowable costs may not exceed, in the aggregate, one hundred fifty dollars per square foot with respect to the portion of the building which comprises the base building and seventy-five dollars per square foot with respect to the portion of the building which comprises the tenant space.
(3) GREEN BASE BUILDING CREDIT COMPONENT. The green base building credit component shall be equal to the applicable
percentage of the allowable costs paid or incurred by the taxpayer, if the owner, for either the construction of a green base building or for the rehabilitation of a base building which is not a green base building to be a green base building. Provided, however, the credit component shall not exceed the maximum amount specified in the initial credit component certificate. The applicable percentage shall be l percent, except that if the building is located in an economic development area, the applicable percentage shall be 1.2 percent. The credit component amount so determined shall be allowed for the credit allowance year, but only if:(a)the taxpayer has obtained and filed both an initial credit component certificate and an eligibility certificate issued pursuant to subdivision (C) of this section, (b) a certificate of occupancy for the building has been issued and (c) where the credit allowance year is a year described in subparagraph (b) of paragraph (2-a) of subdivision (B) of this section, the green base building or rehabilitation of a base building remains in service during such year. Such credit component amount shall be allowed also for each of the next four succeeding taxable years with respect to which the taxpayer has obtained and filed an eligibility certificate pursuant to subdivision (C) of this section. Provided, further, the allowable costs for the base building may not exceed, in the aggregate, one hundred fifty dollars per square foot.
(4) GREEN TENANT SPACE CREDIT COMPONENT. The green tenant space credit component shall be equal to the applicable percentage of allowable costs for tenant improvements paid or incurred by the taxpayer (whether owner or tenant) in constructing (including completing) tenant space, or rehabilitating tenant space which is not green tenant space to be green tenant space.Provided, however, the credit component shall not exceed the maximum amount specified in the initial credit component certificate. The applicable percentage shall be 1 percent, except that if the building is located in an economic development area the applicable percentage shall be 1.2 percent. Provided, however, that the owner, or a tenant who occupies fewer than ten thousand square feet, shall qualify for such green tenant space credit component only in the event that the base building is a green base building. The credit component amount so determined shall be allowed for the credit allowance year, but only if(a)the taxpayer has obtained and filed an initial credit component certificate and an eligibility certificate issued pursuant to subdivision (C) of this section and (b) where the credit allowance year is a year described in
subparagraph (b) of paragraph two-a of subdivision (B) of
this section, the construction, completion or rehabilitation
remains in service during such year. Such credit component amount shall be allowed also for each of the next four
succeeding taxable years with respect to which the taxpayer has obtained and filed an eligibility certificate pursuant to subdivision (C) of this section. Provided, however, the allowable costs for tenant space shall not exceed, in the
aggregate, seventy- five dollars per square foot. In the event that both an owner and tenant incur such costs for tenant space with respect to the same tenant space and such costs in the aggregate exceed seventy-five dollars per
square foot, the owner shall have priority as to costs constituting the basis for the green tenant space credit component.
(5) FUEL CELL CREDIT COMPONENT
A fuel cell credit component shall be allowed for the installation of a fuel cell which is a qualifying alternate energy source, installed to serve a green building, green base building or green tenant space. The amount of the credit component shall be six percent of the sum of the capitalized costs paid or incurred by the taxpayer with respect to each fuel cell installed to serve such building or space, including the cost of the foundation or platform and the labor cost associated with installation, such
capitalized costs not to exceed one thousand dollars per kilowatt of installed dc rated capacity. Provided, however, the credit component shall not exceed the maximum amount specified in the initial credit component certificate. The fuel cell credit component amount so determined shall be allowed for the credit allowance year, but only if
(a)the taxpayer has obtained and filed an initial credit
component certificate and an eligibility certificate issued
pursuant to subdivision (C) of this section and
(b) where the credit allowance year is a year described in
subparagraph (b) of paragraph two-a of subdivision (B)
of this section, the fuel cell remains in service during such year. Such credit component amount shall be allowed also with respect to each of the four taxable years next following during which the fuel cell remains in service. Provided, however, that the amount of any federal, state or local grant received by the taxpayer and used for the purchase and/or installation of such fuel cell and which was not included in the federal gross income of the taxpayer
shall be subtracted from the amount of such cost.
(6) PHOTOVOLTAIC MODULE CREDIT COMPONENT.
A photovoltaic module credit component shall be allowed for the installation of photovoltaic modules Which constitute a qualifying alternate energy source installed to serve a green building, green base building or green tenant space. The amount of the credit component shall be twenty percent of the incremental cost paid or incurred by the taxpayer for building-integrated photovoltaic modules and five percent of the cost of non-building-integrated photovoltaic modules, in either case such cost not to exceed the product of (i) three dollars and (ii) the number of watts included in the dc rated capacity of the photovoltaic modules. Provided,
however, the credit component shall not exceed the maximum
amount specified in the initial credit component certificate. The credit component amount so determined shall be allowed for the credit allowance year, but only if
(a)the taxpayer has obtained and filed an initial credit
component certificate and an eligibility certificate issued
pursuant to subdivision (C) of this section and (b)where the credit allowance year is a year described in subparagraph (b) of paragraph two-a of subdivision (B) of this section, the modules remain in service during such year. Such credit amount shall be allowed also for the four taxable years next
following during which the modules remain in service: Provided, however, that the amount of any federal, state or local grant received by the taxpayer and used for the purchase and/or installation of such photovoltaic equipment and which was not included in the federal gross income of the taxpayer shall be subtracted from the amount of such cost.
(B) DEFINITIONS.
As used in this section, the following terms shall have the following meanings:
(1)"allowable costs" means amounts properly chargeable to capital account (Other than for land), which are paid or incurred within six months of the effective date of this section, for: construction or rehabilitation; commissioning costs; interest paid or incurred during the construction or rehabilitation period; legal, architectural, engineering and other professional fees allocable to construction or
rehabilitation; closing costs for construction, rehabilitation or mortgage loans; recording taxes and filing fees incurred with respect to construction or rehabilitation; site costs (such as temporary electric wiring, scaffolding, demolition costs, and fencing and security facilities); and costs of furniture, carpeting, partitions, walls and wall coverings, ceilings, drapes, blinds, lighting, plumbing, electrical wiring and ventilation; provided that such costs shall not include the cost of telephone systems and computers (other than electrical wiring costs) and shall not include the cost of
fuel cells or photovoltaic modules (including installation).
(2) base building" means all areas of a building not intended for occupancy by a tenant or owner, including but not limited to the structural components of the building, exterior walls, floors, windows, roofs, foundations, chimneys and stacks, parking areas, mechanical rooms and mechanical systems, and owner-controlled and/or operated service spaces, sidewalks, main lobby, shafts and vertical transportation mechanisms, stairways and corridors.
(2-a) "credit allowance year" means the later of:
(a) the taxable year during which the property, construction, completion or rehabilitation referred to in paragraph one of subdivision (A) of this section has been placed in service or has received a final certificate of occupancy or (b)the first taxable year with respect to which the credit may be claimed pursuant to the initial credit component certificate issued pursuant to subdivision (C) of this section.
(3)"commissioning" means the testing and fine-tuning of heat, ventilating and air conditioning and other systems to assure proper functioning and adherence to design criteria and the preparation of system operation manuals and instruction of maintenance personnel.
(4) "DOER" means the Massachusetts Division of Energy Resources.
"EPA" means the United States Environmental Protection Agency.
(5) "economic development area" means an area as defined by
section 1, of chapter 121C or an empowerment zone or
enterprise community pursuant to section 1391 of the
Internal Revenue Code.
(6) "eligible building" means a building located in this state which is:
(a) classified as commercial pursuant to the Massachusetts
state building code or similarly classified under any
subsequent code; provided that any such building contains at least twenty thousand square feet of Interior space, or
(b) a residential multi-family building with at least twelve
dwelling units that contain at least twenty thousand square
feet of interior space, or
(c) one or more residential multi-family buildings with at least two dwelling units that are part of a single or phased construction project that contains, in the aggregate, at least twenty thousand square feet of interior space; provided that in any single phase of such project at least ten thousand square feet of interior space is under construction or rehabilitation, or
(d) any combination of buildings described in subparagraphs (a), (b) and (c) of this paragraph, and
(e) is not a building located on freshwater wetlands or
tidal wetlands as defined by sections 40 and 40A of
chapter 131, or on wetlands such that the construction
thereof requires a permit pursuant to section 404 of
the federal clean water act (33 U.S.C. s 1344).
(7) "energy code" means any and all chapters within the
Massachusetts State Building Code that cover in whole or in part energy or energy-related issues.
(8) "fuel cell" means a device that produces electricity directly from hydrogen or hydrocarbon fuel through a non-combustive electro-chemical process.
(9) "green base building" means a base building which is part of an eligible building and which meets the following standards:
(a) energy and energy efficiency
(i) energy use is no more than sixty-five percent (in
the case of new construction of a base building) or
seventy-five percent (in the case of rehabilitation of a
base building) of the use permitted under the
energy code or, in the event such standard is revised
or superseded, energy use shall meet such other
energy efficiency standards that DOER shall establish in regulations within six months of the effective date of this section pursuant to paragraph one of subdivision (E) of this section, in effect at the time the base building or rehabilitation thereof is placed in service.
(ii) all appliances and any heating, cooling and water
heating equipment used in the base building and subject to the regulations promulgated by DOER within six months of the effective date of this section pursuant to paragraph one of subdivision (e) of this section, shall meet the standards established by such regulations in effect at the time the base building or rehabilitation thereof is placed in service.
(b) Zoning, indoor air quality, building materials, finishes and furnishings.
(i) the base building shall comply with all applicable
zoning, land use and erosion control requirements, stormwater management ordinances, building code
requirements and environmental regulations. In the
case of the rehabilitation of an existing building, all
existing environmental hazards shall be identified and
managed in accordance with applicable laws, regulations and industry guidelines.
(ii) buildings classified pursuant to the Massachusetts state building code, or similarly classified under any
subsequent code, shall meet the following indoor air quality requirements:
(iii) ventilation and exchange of air shall meet the
standards established by regulations promulgated by
DOER within six months of the effective date of this
section pursuant to paragraph two of subdivision (E)
of this section;
(iv) if smoking is permitted in specific areas of the building, separate air ventilation and circulation shall be provided for smoking and non-smoking areas;
(v) the ventilation system shall include an air purging
system that is capable of replacing one hundred percent of the air on any floor, on a minimum of two floors at a time. The air shall be purged for a period of one week on every floor immediately prior to initial occupancy and on any floor that undergoes renovation immediately prior to re-occupancy; provided that, if a taxpayer obtains certification from a licensed architect, engineer, certified industrial hygienist, or other licensed or certified professional whom the commissioner of environmental conservation shall approve, pursuant to regulations, verifying that off-gassing and any other contamination can be reduced to comparable levels in less than one week, the period of purging may be shortened. The taxpayer shall maintain a copy of such certification in accordance with the
provisions of subdivision (D) of this section.
(vi) building fresh air intake shall be located a
minimum of twenty-five feet away from loading areas,
building exhaust fans, cooling towers and other point
sources of contamination.
(vii) during construction or rehabilitation, the ventilation system components and pathways shall be protected from contamination in accordance with an indoor air quality management plan for the construction or rehabilitation process that meets the standards established in regulations promulgated by six months of the effective date of this section pursuant to paragraph two of subdivision (E) of this section. In the event that such areas are not protected from contamination in accordance with such standards, they shall be cleaned prior to occupancy.
(viii) a licensed engineer, certified industrial hygienist, or other licensed or certified professional whom the
commissioner of environmental conservation shall
approve, pursuant to regulations, shall conduct indoor air quality testing with respect to the entire building immediately following occupancy, if any, and on an annual basis, to monitor supply and return air and ambient air for carbon monoxide, carbon dioxide, total volatile organic compounds, radon, and particulate matter. Provided, however, once radon measurements have been found to be satisfactory,
subsequent annual testing is not required. The
taxpayer shall record baseline readings immediately following occupancy, if any. and annually thereafter. In
the event that the taxpayer does not establish that during a taxable year during which any part of the building is occupied, indoor air quality met the standards established in regulations promulgated by DOER within six months of the effective date of this section pursuant to paragraph two of subdivision (E) of this section, the base building shall not constitute a green base building.
(ix)the mechanical plant of the building shall be
commissioned in accordance with the standards established in regulations promulgated by DOER within six months of the effective date of this section pursuant to subparagraph (d) of paragraph one of subdivision (E) of this section, which standards shall be informed by documents such as ASHRAE G-1 and the United States General Services Administration "Model Commissioning Plan and Guide Specifications". For
purposes of this subparagraph the term "ASHRAE"
means the american society of heating, refrigerating
and air conditioning engineers.
(x) separate waste disposal chutes or a carousel compactor system for recyclable materials shall be provided for the recycling of waste by occupants, or recycling shall be otherwise facilitated by, at a minimum, providing a readily accessible designated collection area or areas with sufficient space to store recyclable materials separately between collection dates.
(xi) all plumbing fixtures in the public areas of the building shall meet the plumbing fixture requirements of the State Plumbing Code or any successor provision in effect at the time the building or rehabilitation is placed ir
service.
(xii) prior to initial occupancy and upon request, the owner
of the building shall provide each tenant with
(a) written notification of the opportunity to apply for
a tax credit pursuant to this section and
(b) written guidelines regarding opportunities to improve the energy efficiency and air quality of tenant space and to reduce and recycle waste streams.
(xiii) all building materials, finishes and furnishings used in the base building and subject to the regulations
promulgated by DOER within six months of the effective
date of this section pursuant to subparagraph (a) of
paragraph three of subdivision (E) of this section, shall
meet the standards established by such regulations in
effect at the time the building or rehabilitation is placed
in service; provided further that with respect to
furnishings, this requirement shall apply only to newly
purchased items.
(xiv) all tenant space in the building occupied by the owner
must be green tenant space.
(10) "green building" means a building wherein the base building is a green base building and all tenant space is green tenant space.
(11) "green tenant space" means tenant space in a building if such building is an eligible building and if such tenant space complies with the following requirements:
(a) energy and energy efficiency.
(i) energy use for tenant space is no more than sixty-
five percent (in the case of new construction) or
seventy-five percent (in the case of rehabilitation) of the
use permitted under the energy code or, in the event
such standard is revised or superseded, energy use
shall meet such other energy efficiency standards that
DOER shall establish in regulations promulgated
within six months of the effective date of this section,
pursuant to paragraph one of subdivision (E) of this
section and within six months of the effective date of
this section, in effect at the time the improvements with
respect to which a tax credit is claimed are placed in
service.
(ii) all appliances and any heating, cooling and water
heating equipment used in the tenant space and subject to the regulations promulgated by DOER within six months of the effective date of this section pursuant to paragraph one of subdivision (E) of this section shall meet the standards established by such regulations or,in the event that such standards are revised, the standards in effect at the time the improvements with respect to which a tax credit is claimed are placed in service.
(b) Code requirements, indoor air quality, building materials, finishes and furnishings.
(i) the tenant space shall comply with all applicable
building code requirements and environmental regulations and, with respect to projects other than new construction, all existing environmental hazards shall be identified and managed in accordance with applicable laws, regulations and industry guidelines.
(ii) in the case of buildings classified, pursuant to
the Massachusetts state building code, or similarly classified under any subsequent code, ventilation and exchange of indoor/outdoor air shall meet the standards
established in regulations promulgated by DOER
within six months of the effective date of this section pursuant to paragraph two of subdivision (E) of this section.
(iii) for buildings in which smoking is permitted, the taxpayer shall ensure that, if smoking is permitted in the tenant space, it is permitted only in areas in which the air
ventilation and circulation is separate from that for non-
smoking areas.
(iv) during construction or rehabilitation, the ventilation system components and pathways shall be protected from contamination in accordance with an indoor air quality management plan for the construction or rehabilitation process that meets the standards established in regulations promulgated by DOER within six months of the effective date of this section pursuant to paragraph two of subdivision (E) of this section. In the event that such areas are not protected from contamination in accordance with such standards, they shall be cleaned prior to occupancy.
(v) a licensed engineer, certified industrial hygienist, or other licensed or certified professional whom the
commissioner of DOER designates immediately, following occupancy, if any, and on an annual basis, to monitor supply and return air anc ambient air for carbon monoxide, carbon dioxide, total volatile organic compounds, radon, and particulate matter. Provided, however, once radon measurements have been found to be satisfactory, subsequent
annual testing is not required. The taxpayer shall
record baseline readings immediately following occupancy, if any, and annually thereafter. In the event that the taxpayer does not establish that during a taxable year during which the tenant space is occupied, indoor air quality met the standards established in regulations promulgated by DOER within one year of adoption of this Act pursuant to paragraph two of subdivision (E) of this section, the tenant space shall not constitute green tenant space.
(vi) all plumbing fixtures in the tenant space shall meet the plumbing fixture requirements of the State Plumbing Code or successor provision in effect at the time the improvements with respect to which a tax credit is claimed are placed in service.
(vii) all building materials, finishes and furnishings selected for use in the tenant space and subject to the
regulations promulgated by DOER within six months of
the effective date of this section pursuant to
subparagraph (a) of paragraph three of subdivision (E)
of this section, shall meet the standards established by
such regulations or, in the event that such standards
are revised, the standards in effect at the time the
improvements with respect to which a tax credit is
claimed are placed in service, provided that, with
respect to furnishings, this requirement shall apply only
to newly purchased items.
(12) "Incremental cost of building-integrated photovoltaic modules"means:
(a) the cost of building-integrated photovoltaic modules and any associated inverter, additional wiring or other electrical equipment or additional mounting or structural materials, less the cost of spandrel glass or other building material that would have been used in the event that building-integrated photovoltaic modules were not installed,
(b) incremental labor costs properly allocable to on-site
preparation, assembly and original installation of photovoltaic modules, and
(c) incremental architectural and engineering services and designs and plans directly related to the construction or installation of photovoltaic modules.
(13) "qualifying alternate energy sources" means building-integrated and non-building-integrated photovoltaic modules and fuel cells installed to serve the base building or tenant space which have the capability to monitor their ac output, and which are validated upon installation, and annually thereafter, to ensure that such systems meet their design specifications.
(14) "tenant improvements" means improvements which are necessary or appropriate to support or conduct the business of a tenant or occupying owner.
(15) "tenant space" means the portion of a building intended for occupancy by a tenant or occupying owner.
(C) CERTIFICATIONS
(1) INITIAL CREDIT COMPONENT CERTIFICATE. Upon application by a taxpayer, DOER shall issue an initial credit component certificate where the taxpayer has made a showing that the taxpayer is likely within a reasonable time to place in service property which would warrant the allowance of a credit under this section. Such certificateshall state the first taxable year for which the credit may be claimed
and an expiration date, and shall apply only to property placed in service by such expiration date. Such expiration date may be extended at the discretion of DOER, in order to avoid unwarranted hardship. Such certificates may be issued in years 2001-2005. Such certificates shall state the maximum amount of credit component allowable for each of the five taxable years for which the credit component is allowed, under paragraphs two through seven of subdivision (a) of this section.
17 (2)ELIGIBILITY CERTIFICATE. For each taxable year for which a taxpayer claims a credit under this section with respect to a green building, green base building or green tenant space, a fuel cell, or photovoltaic modules, the taxpayer shall obtain from an architect or professional engineer licensed to practice in this state an eligibility
certificate. Such certificate shall consist of a certification, under the seal of such architect or engineer, that the building, base building or tenant space with respect to which the credit is claimed is a green
building, green base building or green tenant space, respectively, that the fuel cell or photovoltaic modules constitute qualifying alternate energy sources and remains in service. Such certification shall be made in accordance with the standards and guidelines in effect at the time the property which is the basis for the credit was placed in service. Such certification shall set forth the specific
findings upon which the certification was based. The taxpayer shall file such certificate, and the associated initial credit component certificate, with the claim for credit and shall file duplicate copies with DOER. Such certificate shall include sufficient information to identify
each building or space, and such other information as DOER and the commissioner shall prescribe.
(3) WRONGFUL CERTIFICATION. If DOER has reason to believe that an architect or professional engineer, in making any
certification under this subdivision, engaged in
professional misconduct, then DOER shall so inform the Board
of Registration of Architects and/or Board of Registration
of Engineers and Land Surveyors.
(D) OTHER REQUIREMENTS; MISCELLANEOUS.
(1) RECORD KEEPING. Each taxpayer shall, for any taxable year for which the green building credit provided for under this section is claimed, maintain records of the following information:
(a) annual energy consumption for building, base building or tenant space;
(b) annual results of air monitoring;
(c) annual confirmation that the building, base building or tenant space continues to meet requirements regarding smoking areas, if provided;
(d) tenant guidelines referred to in subparagraph (i) of paragraph nine of subdivision (B) of this section, if applicable;
(e) all written notification of tenants and requests to remedy any indoor air quality problems;
(f) initial and annual (by month) results of validation of
performance of photovoltaic modules and fuel cells: and
(g)certifications as to off-gassing and other contamination, as prescribed in subclause (iii) of clause (ii) of subparagraph (b) of paragraph nine of subdivision (B) of this section, where applicable.
(2) REPORTING TO DOER. Each taxpayer shall also provide to
DOER the information described in paragraph one of this subdivision, in the form and at the time prescribed by DOER, such time to be determined in consultation with the commissioner. Such information shall be provided to DOER with respect to each taxable year with respect to which the taxpayer claims a credit under this section.
(3) REGULATIONS. The DOER is hereby authorized to promulgate and adopt regulations necessary to the implementation of this section. Such regulations must beadopted within six months of the effective date of this section. Such regulations shall construe the provisions of this section in such a manner as to encourage the development of green buildings, green base buildings and green tenant space and to maintain high but commercially reasonable standards for obtaining tax credits hereunder. Such regulations shall establish a reasonable time or period of time for submission of applications, and shall establish a method for allocating initial credit component certificates among eligible applicants. Regulations, standards or requirements adopted
pursuant to this section shall apply only to a "green base building" as defined in paragraph nine of subdivision (B) of this section, a "green building" as defined in paragraph ten of subdivision (B) or "green tenant space" as defined in paragraph eleven of subdivision (B) of this section.
(4) REPORT. On or before April first, two thousand six the
commissioner of DOER shall submit a written report regarding the number of certifications and taxpayers claiming the credit provided for under this section; the amount of the credits claimed, the geographical distribution of the credits claimed; and any other such available information DOER may deem meaningful and appropriate.
A preliminary version of such report shall be so issued by April first, two thousand six The commissioner of DOER shall ensure that the information is presented and/or classified in a manner consistent with the secrecy requirements of this chapter. The report shall be submitted to the governor, president of the senate, the speaker
of the house, the chairman of the senate finance committee and the chairman of the house ways and means committee.
(E) STANDARDS AND REGULATIONS.
(1) ENERGY STANDARDS: BASE BUILDINGS. Within six months of the effective date of this section, DOER shall promulgate the following, with respect to base buildings:
(a) regulations establishing standards for energy use for eligible buildings. DOER shall review and update such regulations at least every two years from the date on which such regulations are promulgated.
(b) regulations establishing standards for appliances and
heating, cooling and water heating equipment that, on the
effective date of this section, are covered by specifications from organizations such as the United States Department of Energy or Environmental Protection Agency. The development of such regulations shall be informed by such specifications. DOER shall review and update such
regulations at least every two years from the date on which
such regulations are promulgated.
(c) regulations indicating the methodology by which a taxpayer shall demonstrate compliance with subparagraph (a) of paragraph nine of subdivision (B) of this section. Such
regulations shall include, at a minimum, a requirement to
conduct hourly computer modeling for one full year.
(d) regulations establishing standards for the commissioning of buildings.
(2) INDOOR AIR STANDARDS: BASE BUILDINGS. Within six months
of the effective date of this section, DOER shall promulgate
regulations establishing standards, with respect to base buildings, for
(a) ventilation and exchange of indoor/outdoor air,
(b) indoor airquality management plans for the construction or rehabilitation process, and
(c) indoor air quality with respect to levels of carbon
monoxide, carbon dioxide and total volatile organic compounds, radon and particulate matter.
(3) STANDARDS FOR MATERIALS. WATER CONSERVATION.
DRAINAGE: BASE BUILDINGS.
Within six months of the effective date of this section, DOER shall promulgate the following, with regard to base buildings:
(a)regulations establishing standards for building materials, finishes and furnishings regarding minimum percentages of recycled content and renewable source material and maximum levels of toxicity and volatile organic compounds and any other standards that the DOER deems appropriate.Standards shall be developed for building materials, finishes and furnishings, including but not limited to concrete and concrete masonry units; wood and wood products; millwork substrates; insulation;ceramic,
ceramic/glass and cementitious tiles; ceiling tiles and panels; flooring and carpet; paints, coatings, sealants and adhesives; and furniture. The development of such standards shall be informed by the Ieed rating system. The DOER shall review and update such regulations at least every two years from the date on which such regulations are promulgated. For
purposes of this clause, "LEED rating system" means the
leadership in energy and environmental design green building
rating system criteria being developed by the United States
Green Building Council.
(b) regulations establishing standards for buildings located in areas where water use is not metered, which regulations shall require, at a minimum, that the building include one of the following features:
(i) a gray water system that recovers non-sewage waste
water or uses roof or ground storm water collection systems, or recovers ground water from sump pumps;
(ii) for buildings with a cooling tower system, such system
shall be designed with delimiters to reduce drift and
evaporation; or
(iii) for buildings with exterior plants, all such plants shall be tolerant of climate, soils and natural water
availability and shall not receive watering from
municipal potable water after a period of establishment
is complete.
(c) regulations establishing standards for buildings located in areas that do not have sewers or that have designated storm sewers, which regulations shall require, at a minimum, that the building shall include one of the following features:
(i)an oil grit separator or water quality pond for pretreatment of runoff from any surface parking areas;
or
(ii) at least fifty percent of nonlandscaped areas (including roadways, surface parking, plazas and pathways), if any, shall be comprised of pervious paving materials.
(d) regulations indicating the methodology by which taxpayers shall demonstrate compliance with subparagraphs (b) and (c) of paragraph nine of subdivision (B) of this section.
(4) ENERGY STANDARDS: TENANT SPACE. Within six months of the
effective date of this section, DOER shall promulgate regulations, with respect to tenant space, indicating the methodology by which taxpayers shall demonstrate compliance with subparagraph (a) of paragraph eleven of subdivision (B) of this section.
(5) STANDARDS FOR INDOOR AIR QUALITY. BUILDING MATERIALS.
FINISHES AND FURNISHINGS: TENANT SPACE.
Within six months of the effective date of this section, DOER shall promulgate regulations, with respect to tenant space, indicating the methodology by which taxpayers shall demonstrate compliance with subparagraph (b) of
paragraph eleven of subdivision (B) of this section.
(6) FUNDING FOR REGULATIONS AND EDUCATION.
Funding for 3.0 full-time staff positions will be made available to DOER for completion of the regulations required under this section and for administration of this section. Additional funding of $150,000 will be made available for state wide educational seminars and other education programs to assist developers, tenants, and any others who may participate in the green building tax credit program.