Exceptions

All Exceptions require additional documentation; see the I08 Exception Documentation and Summary Table in Documentation Requirements for more information.

ENERGY USE EXCEPTIONS

For Energy Use Exceptions, please see Imperative 07.

METERING EXCEPTIONS

EC-013 Sub-Metering in Existing Buildings

Existing buildings, retrofits, and renovations are not required to have sub-metering where it would create an undue burden by necessitating substantial rewiring. The project team must instead determine an alternative solution for how the project will meet the intent of this Imperative to sufficiently provide a feedback loop on predicted vs. energy end uses and document their solutions in a narrative.

RENEWABLE ENERGY EXCEPTIONS

EC-007 Government REC Sales

Project teams are allowed to sell their renewable energy certificates (RECs), or other similar production incentives, as part of a governmentally established program for achieving larger public policy objectives such as carbon reduction. In these cases, the RECs must be sold to a governmentally specified REC recipient, and the REC purchase contract must specify that the RECs will be held (not resold) by the governmentally established recipient for a minimum of 15 years in order to prevent double-counting of the energy and carbon benefits. Project teams must provide the REC contract and highlight the renewable attribute language of that contract.

EC-008 Arbitrage of Project-Generated RECs

Project-generated RECs and/or emissions-avoidance claims from on-site or off-site systems can be sold or transferred to a third party for their energy or emissions claims if the following conditions are met:

• The project procures, then retires or maintains possession for a minimum of 15 years, new RECs equal to the renewable energy capacity of the RECs being sold or transferred; and
• All newly procured RECs must: 
  • Be sourced from a comparable 100% non-combustion based renewable energy source, such as wind or solar.
  • Be sourced from within the same regional grid, as defined by the electric power markets by the U.S. Federal Energy Regulatory Commission (or comparable international authority).
  • Be exclusively attributed to the project.
  • Be Green-e Certified (or international equivalent).

EC-012 Off-Site Renewables

Use of this exception requires ILFI approval in advance; see details below.

Projects that are unable to provide renewables on site because they fall under one or more of the project types listed below may locate renewable systems off site if they meet the requirements listed below and receive preapproval through a Request for Ruling. The preapproval request must provide documentation demonstrating that the certifying project meets eligibility criteria and that the renewables strategy meets all off-site requirements. Note that additional elements may need to be addressed in the preapproval request, as indicated below, depending on project type and renewables strategy.

Eligible Project Types

1. Tenant improvement projects where there is no ownership interest by the project owner or developer in the core building HVAC systems and/or the building envelope or grounds.
2. High density/high–energy use intensity (EUI) projects that, even after the highest levels of efficiency are attained, are unable to offset their energy use on site due to project density/height or inherently very high baseline EUIs (such as for a hospital or data center).
3. Utility- and jurisdictional-constrained projects that are not able to provide on-site renewables due to substantial limitations of the local grid to absorb the generated energy, or jurisdiction-related limitations (such as military restrictions on wind turbine placement).

Offsite Renewables Requirements – All Project Types

Off-Site renewables for all projects must:

1. Be located within the same regional grid as the project.
2. Be located consistent with the site criteria of LBC Imperative 01 – Ecology of Place.
3. Provide additionality.
4. Be physically identifiable (i.e., location and attributes known rather than a generalized power purchase) and specifically attributed or allocated to the project for a minimum of 15 years through a recognized ownership structure such as a power purchase agreement (PPA). Note that an Interior project’s PPA term may match the term of the overall project lease.
5. Be directly metered, with a public meter in the project showing current output in real time and over the year.
6. Be clearly and visibly explained in detail at the project site.
   

Note: If the project team is unable to meet requirement (2), they must show “best effort” to do so, including at a minimum:

• Pursuit of participation in a community solar program;
• Placement of renewables on its own site or on others’ facilities off site with excess solar capacity (e.g., a building that needs only a portion of its roof area for its own energy demands); or
• Work with at least three utility-scale providers to provide renewables that meet the criteria.
  

If after making such “best efforts,” the project team is unable to locate off-site renewables consistent with these criteria, the team must include a description of its efforts in a Request for Ruling for preapproval.

Ownership

Off-site renewable systems not directly owned by the project are eligible for use by any project type under this Exception, subject to all of the requirements below:

• The annual renewable energy output must be guaranteed through a long-term contract that provides a volume of energy equivalent to 15 years of the project’s anticipated energy use. The annual output of the system must be equal to or greater than the project energy use during the performance period, as required by the certification being pursued.
• The contract for renewable energy must achieve additionality; the project team must demonstrate that the development of the renewable energy system was a direct result of the participation of the certifying project.
• Renewable energy certificates (RECs) must either be retained by the certifying project owner or retired on their behalf.
• The renewable energy system must be physically identifiable and publicly attributed to the certifying project, including in educational signage at the project site.
• All other criteria for renewable energy not related to ownership must be met.

To use the indirect ownership pathway, project teams must include in their submission for preapproval to use this Exception documentation that:

• Describes the renewable energy ownership arrangement and includes a copy of the contract language and/or terms demonstrating that all renewables criteria applicable to the project type are met.
• Demonstrates that the involvement of the certifying project was critical to development of the renewable project.
  

Requirements Specific to Project Type

1. Tenant improvement projects: No additional requirements.

2. High-density/high–energy use intensity ((EUI) projects must:

• Target and achieve a level of energy efficiency consistent with the project’s required energy efficiency target through a Request for Ruling preapproval based on an energy professional’s energy model for the project.
• Provide a mechanism to reinforce the targeted level of energy efficiency.
• Meet the following minimum on-site renewable energy requirement:

Existing buildings:
Projects must have a solar site assessment of the existing roof performed by a qualified contractor. For those portions of the roof that have a Total Solar Resource Fraction (TSRF) of 75% and greater, projects must install a minimum 75% of the maximum solar capacity (based on DC – nameplate), based on standard industry practice for PV installation and maintenance accessibility.

New Construction:
Projects must be designed to include solar photovoltaics within the Project Area that are equivalent to at least 75% of the available roof area, using standard industry practice for PV installation and maintenance accessibility within that 75%. Systems shall be designed to provide a minimum TSRF of 75% and greater. Some PV must be provided on site, even if there is little to no available roof area. PV may be placed on on-site shade structures, or elsewhere on site to meet this area requirement.

New Construction and Existing:
Where the project’s roof is shaded by existing structures or natural features that are not within the project team’s control, that area of the roof that has a TSRF below 75% may be excluded from the available roof area.

3. Utility-constrained and jurisdictional-constrained projects must:

• Advocate to the jurisdiction or authority to allow as much on-site generation as feasible.
• Work with the jurisdiction or authority in a good-faith effort to investigate any identified technical, legal, financial, or policy limitations, and seek to implement all reasonable solutions. The results of the effort shall be provided in a local grid advocacy report.
• Include the maximum renewables on site allowed by the jurisdiction or authority after the project team’s advocacy and technical work.
• Achieve a highly efficient EUI based on either:
  • A maximum energy usage calculation of Net Positive Energy performance based on the amount of renewable generation technically feasible on site (absent utility constraints); or
  • An energy efficiency target preapproved through a Request for Ruling that is consistent with Net Zero Energy projects of their building type and climate zone, based on an energy professional’s energy model for the project.

Documentation

The specific documents required to show compliance with this Exception for the certification audit will be determined with ILFI for each project circumstance and will be communicated to the project team at the time of preapproval, if granted. Required documentation is likely to include an Exception narrative, technical documents (e.g., grid limitation documents, energy study, solar site assessment, PV generation information), and photographs. At the time of Final Audit, all documents must show the contribution of off-site renewable energy to offsetting 105% of the project’s actual annual energy use.

EC-022 Zero/Net Positive Energy Performance for Utility Constrained Projects

Projects that are grid-connected but prohibited by the utility from exporting energy to the grid may demonstrate the ability to be zero energy (or net positive, per the standard being pursued) through calculations showing excess energy that could have been provided to the grid during the performance period in their energy balance. The project must draw energy from the grid only when their battery has been depleted and be unable to cover loads with renewables. Calculated energy surpluses must be identified as such in the energy tracking table and must be based on actual meteorological conditions and actual loads.

The project team must provide documentation showing:

• A record of correspondence with the utility that highlights the inability to export energy to the grid;
• Surplus energy calculations, including loads and meteorological conditions; and
• Advocacy to the utility provider to allow for energy to be exported to the grid.
  

SCALE JUMPING EXCEPTIONS

For Scale Jumping Exceptions, please see Scale Jumping Clarifications under this imperative.