States of Jersey to legislate for 'green' commercial and residential buildings
A White Paper has been released for consultation by the Planning and Environment Minister which seeks to amend the building bye-law requirements relating to conservation of fuel and power in all newly constructed, extended and altered buildings.
The consultation period ends on 30 May 2008.
Proposed amendments to building bye-laws
The proposed amendments to the building bye-laws align with Jersey’s international obligations as a Kyoto signatory to reduce carbon emissions and have been prepared to accord with the EU Energy Performance of Buildings Directive which requires all member states to take steps to improve energy efficiency of buildings.
The main proposals include:
1. setting of annual carbon emission targets for all newly constructed buildings;
2. targets are to be set to achieve a 20% reduction in emissions from dwellings and 23% to 28% from buildings other than dwellings (i.e. commercial property);
3. new bye-laws to improve compliance by requiring air pressure testing for all buildings, including dwellings;
4. new requirements for householders to be provided with an energy rating for new homes which will show energy costs for space heating, water heating, ventilation, lighting and annual CO2 emissions; and
5. increased standards to require developers to make greater use of energy saving insulation, more efficient heating boilers and low or zero carbon systems such as solar panels and geothermal technology.
The aim of the White Paper is to set clear energy targets in the building bye-laws for all buildings making a significant contribution to reducing CO2 emissions resulting in a more sustainable built environment for Jersey.
New Buildings and Existing Buildings
New Buildings
Under the proposals new commercial and new residential developments
must not exceed target CO2 emission rates which are to be pre-approved at the building application stage.
Existing Buildings
The proposals will also relate to existing commercial and existing residential buildings with
a total useful floor area over 1000m² where any of the following building work is proposed:
(a) an extension;
(b) the initial provision of any fixed building services; or
(c) an increase to the installed capacity of any fixed building services.
Energy Performance of Buildings
As well as specific detailed provisions the White Paper also provides that:
(i)
The Minister shall approve a methodology for calculation of the energy performance of buildings; and
(ii)
The Minister shall approve minimum energy performance requirements for new buildings, in the form of target CO2 emission rates, which shall be based upon the approved methodology.
The Minister is yet to give details of the proposed minimum energy performance requirements for new buildings (i.e. the target CO2 emission rates) or of the methodology for calculating the energy performance of buildings.
However, similar legislation in the UK, which comes into force on 6 April 2008 entitled ’The Energy Performance of Buildings (Certificates and Inspections) (England & Wales) Regulations 2007 is perhaps indicative of things to come in Jersey.
Methodology for calculation of the energy performance of buildings
Under the UK legislation commercial property owners must provide a copy of a valid Energy Performance Certificate ("EPC") on any sale or leasing transaction. Likewise, there are requirements for EPCs on new build homes and residential property.
Issued only by accredited assessors using a prescribed method, an EPC records the energy performance of a building and includes suggested improvements to energy efficiency. Buildings are given a rating from A (’excellent’) to G (’very poor’).
Commentators on the impact of EPCs have identified that the UK Government hopes that the introduction of ’energy labelling’ will create a market where the relative energy efficiency of buildings has a direct impact on rental value and investment yield.
However, those commentators have said that the impact of EPCs on market pricing in the UK may take some time to emerge and that:
"Impact on value will be driven, in part, by occupier demand and this will vary according to the nature of the property, the nature of the current occupier, length of lease and, perhaps, the nature of the businesses that might occupy the property in the future. It is equally important therefore to consider the supply of such accommodation as the current and future availability of better quality, alternative accommodation will also dictate the pace at which energy labelling will impact upon value."
EPCs are not specifically mentioned in the White Paper. Consequently, we will not know if EPCs are going to be introduced into Jersey until the Minister approves the methodology for calculation of the energy performance of buildings in accordance with the White Paper provisions.
Minimum energy performance requirements for new buildings (i.e. the target CO2 emission rates)
What is clear is that the Minister has identified sustainable development as essential to delivering Jersey’s development requirements.
With that goal in sight the Minister has already taken the step of implementing sustainable development requirements into the planning process for both commercial and residential development schemes in Jersey. Examples include the Jersey Waterfront and the Island Plan to rezone land for life-long retirement dwellings and first time buyer homes.
In these instances the Minister has set criteria that developments are to be designed to reduce CO2 emission rates and comply with BREEAM (British Research Establishment Environmental Assessment Method) standards.
BREEAM is the world’s most widely used environmental assessment method for buildings. It sets the standards for best practice in sustainable development and demonstrates a level of achievement – PASS, GOOD, VERY GOOD or EXCELLENT.
The introduction of BREEAM targets can have a significant impact on the build project from conception through to delivery and occupation. In a commercial property context this affects not only developers and the base building but also corporate occupiers fitting out premises.
Again, until the Minister approves the minimum energy performance requirements for new buildings in accordance with the provisions of the White Paper it will not be clear if BREEAM standards or another form of environmental assessment method will form the basis of the target CO2 emission rates.
Conclusion
With the current political agenda aimed at sustainable development for Jersey, and with the introduction of the new White Paper, developers, investors, corporate occupiers and other stakeholders need to be well advised in the delivery of property projects from conception through to delivery and occupation.
For detailed advice concerning the proposed White Paper or sustainable development and its implications on commercial property transactions in Jersey, please contact Jonathan Hughes.