A memorandum regarding BEUDO Amendments

“Alternative Compliance Credit” shall mean a credit obtained by a Covered Property Owner to offset greenhouse gas emissions from the Covered Property. One Alternative Compliance Credit shall be equivalent to one metric ton of Greenhouse Gas Emissions. In the first Compliance Period, each Alternative Compliance Credit shall cost $234.

The Department shall promulgate regulations pursuant to 8.67.130 prior to each Compliance Period to establish the price of the Alternative Compliance Credit for that Compliance Period, based on review of the average cost of reducing one metric ton of greenhouse gas emissions in Covered Properties.

Monies from Alternative Compliance Credits shall be used by the City for City programs and projects to support greenhouse gas reduction, including but not limited to, greenhouse gas reduction projects in Affordable Housing properties, if approved by the Cambridge Affordable Housing Trust.

“Approved Verification Body” shall mean a firm accredited by the American National Standards Institute to conduct greenhouse gas inventory verification services.

“Baseline” shall mean the average of Greenhouse Gas Emissions of Covered Properties for two consecutive calendar years comprising the default baseline, alternative baseline, or new construction baseline as set forth in section 8.67.100 for purposes of calculating emissions reductions in order to meet the requirements of this ordinance set forth in section 8.67.100.

“Benchmarking Information” shall mean information generated by the Benchmarking Tool, as herein 2

defined including descriptive information about the physical property and its operational characteristics. The information shall include, but need not be limited to:

Property address; Primary use type; Gross floor area Site Energy Use Intensity (EUI) as defined in this section; Weather normalized Source EUI; (f) Annual greenhouse gas emissions; (g) Water use; (h) The energy performance score that compares the energy use of the building to that of similar buildings, where available; and (i) Compliance or noncompliance with this Ordinance.

“Benchmarking Tool” shall mean the ENERGY STAR Portfolio Manager tool developed and maintained by the U.S. Environmental Protection Agency to track and assess the relative energy performance of buildings nationwide, or other tools identified by the Department to collect and track Benchmarking Information necessary for compliance with this ordinance

(7) “Campus” shall mean a minimum of 5 (five) Covered Properties owned by the same organization that are owner-occupied properties or Affordable Housing.

(8) “Covered Property” shall mean a parcel, as described in public records or as determined by the Department, containing any of the following:

One or more non-residential building(s) where such building(s) singly or together contain 25,000 to 49,999.99 square feet (“Small Non-Residential Covered Property”); One or more non-residential building(s), where such building(s) singly or together contain 50,000 or more square feet (“Large Non-Residential Covered Property”); and One or more residential building(s) that singly or together contain 50 or more residential Dwelling Units whether they are rental Dwelling Units or Dwelling Units owned as condominiums, cooperatives or otherwise (“Residential Covered Property”).

(9) “Department” shall mean the City of Cambridge Community Development Department.

(10) “Dwelling Unit” shall mean a single residential unit consisting of one or more habitable rooms, occupied or arranged to be occupied as a residential unit separate from all other residential units within a building, and used primarily for residential purposes and not primarily for professional or commercial purposes. 3

(11) “Emission Factors” shall mean the multipliers used to determine the annual Greenhouse Gas Emissions produced by the production or consumption of Energy. The Department shall promulgate regulations pursuant to 8.67.130 no later than two years prior to each Compliance Period to establish the annual Emission Factors for that Compliance Period, and no later than two years prior to the first Compliance Period to establish the annual Emission Factors for 2010-2024.

For the combustion of fuels, such as oil and gas, the Emission Factors will be based on standard scientific values published by federal agencies. For the use of all electricity other than Renewable Electricity, the annual Emission Factor will be based on the Commonwealth of Massachusetts’s calculations and projections of emissions from electricity consumed in Massachusetts.

For the generation or consumption of steam, hot water, and chilled water, the Emission Factors will be calculated based on the Emission Factor published by the Commonwealth of Massachusetts for that product, unless the Commonwealth has not published such a multiplier, in which case the Emission Factor will be calculated using the methodology of the Greenhouse Gas Protocol developed by the World Resources Institute and World Business Council for Sustainable Development.

(12) “Energy” shall mean purchased electricity, natural gas, steam, hot or chilled water, heating oil, or other product or electricity generated on site, for use in a building for purposes of providing heating, cooling, lighting, water heating, or for powering or fueling other end-uses in the building and related facilities.

(13) “Energy Audit” shall mean an energy assessment of a covered property that meets the standards of the ASHRAE Level 2 Audit as specified by the Procedures for Commercial Building Energy Audits published by the American Society of Heating, Refrigeration, and Air-Conditioning Engineers.

(14) “Energy Performance Score” shall mean the numeric rating generated by the ENERGY STAR Portfolio Manager tool or equivalent tool adopted by the department that compares the energy usage of the building to that of similar buildings.

(15) “ENERGY STAR” shall mean the U.S. Environmental Protection Agency program related to improving energy efficiency in buildings and products.

(16) “ENERGY STAR Portfolio Manager” shall mean the tool developed and maintained by the U.S. Environmental Protection Agency to track and assess the relative energy performance of buildings nationwide.

(17) “Energy Use Intensity (EUI)” shall mean a building’s annual energy consumption measured in kBTUs (1,000 British Thermal Units) used per square foot of gross floor area.

(18) “Greenhouse Gas Emissions” (GHG) shall mean the carbon dioxide equivalent emissions produced from the operations of the Covered Property calculated by the Department according 4

to the following calculation:

Greenhouse Gas Emissions are the sum of annual Energy use by fuel type multiplied by the Emission Factor for that type of Energy, minus Alternative Compliance Credits; provided that Renewable Electricity shall be subtracted from the electricity consumption, up to a limit of the total electricity consumption.