Developers looking to pursue large real estate projects in Boston will soon face stricter carbon emissions requirements.
Boston University's Center for Computing and Data Sciences is a net-zero building.
The city's zoning commission on Wednesday approved the controversial net-zero zoning proposal, which would require future large developments to meet net-zero carbon emissions standards once they open their doors. The commission voted in favor of the measure by an 8-to-3 margin.
Starting July 1, developers that file plans for projects 20K SF or larger and multifamily buildings with 15 units or more will need to show they have net-zero emissions upon opening or face fines. Developers looking to build additions of 50K SF or more on existing buildings will also be subjected to the zoning code.
Some buildings in the city won't have to comply with the new regulations: hospitals, general manufacturing facilities and lab buildings. Hospitals and general manufacturing buildings are exempt from reaching zero emissions until 2045, and labs are exempt until 2035 due to their unique ventilation and energy needs.
Last year, the commission voted 6-to-4 in favor of the proposal, missing the two-thirds majority required for passage. The biggest concern at the time was whether affordable housing developments could meet the requirement. Others voiced concerns that the proposal was adding to an already hostile development environment in the city.
The chair of the zoning commission has changed since last year's vote. The city removed former Chair Jay Hurley from the commission last year. He claimed he was fired because of the net-zero vote, but the Wu administration denied that, the Boston Globe reported in September. Michael Nichols now serves as chair.
This time around, city officials answered questions and concerns around the proposal, including how to make affordable housing projects pencil under the new requirements.
Boston Chief of Housing Sheila Dillon said during the Wednesday hearing that the Mayor's Office of Housing will provide additional assistance and subsidies for affordable housing projects.
"It's going to provide additional tools to ensure that Boston is developing in a way that is healthy and clean and going to meet our climate goals," Dillon said. "When we underwrite affordable housing projects, we'll be taking those additional but very manageable costs into consideration, and the affordable housing community know this."
Developers including WinnCos., Samuels & Associates, Millennium Partners and Tishman Speyer voiced support for the proposal, stating that there needs to be conversation around potential changes in the future, but that the zoning is a step in the right direction.
WinnCos. Vice President Christina McPike encouraged the city to look at delaying compliance timelines for affordable housing projects and to boost technical assistance grants to help developers purchase renewable energy credits. She also recommended the city look into tax abatements for developers that do comply, like what is being done in New York City with Local Law 97.
"While we do support the passage of the zoning initiative, we also encourage ongoing dialogue around certain improvements which we think are necessary to mitigate rising costs, both upfront and operational, and to ensure its equitable implementation," McPike said.
The proposal did receive pushback Wednesday from a few members of the commission, including Commissioner Michael DiMella, who said he was concerned that smaller multifamily developers would face the majority of the issues.
"I also appreciate the most well-capitalized and largest developers can probably manage something like this more effectively," DiMella said. "The developers who want to build housing — the 15, the 20 to 40, the 50-unit type — this makes it exceedingly difficult."
Commissioner Drew Leff echoed DiMella's points and also raised concerns about the future impact of the Trump administration on the fate of renewable energy and its cost.
"The president, he doesn't like wind energy and all of this," Leff said. "What if we're going to be in this kind of environment for the next four years and who knows how long after that? Why are we feeling so confident that the pricing on this will remain as you analyzed?"
Oliver Sellers-Garcia, who serves as Boston's first-ever Green New Deal director, responded to Leff, saying the city is certain that renewable energy leases already signed are safe and the city's relationship with state leaders puts them at ease. But he said there is no "crystal ball" in terms of pricing.
"With respect to net-zero carbon zoning, that is just one piece of the many different things that the city and the commonwealth are doing to reduce emissions overall," Sellers-Garcia said. "If we are finding ourselves in a very different situation in terms of the accessibility of renewable energy and its development, this is a larger problem than just net-zero carbon zoning."