# LCL2: Energy Efficiency Requirements

<table data-column-title-hidden data-view="cards" data-full-width="false"><thead><tr><th></th><th></th><th></th><th data-hidden data-card-cover data-type="image">Cover image</th></tr></thead><tbody><tr><td><i class="fa-bullseye">:bullseye:</i> Maximum Score</td><td><strong>0 points</strong></td><td></td><td></td></tr><tr><td><i class="fa-pen-to-square">:pen-to-square:</i> Prefill</td><td><i class="fa-check">:check:</i> <strong>Eligible</strong></td><td></td><td></td></tr><tr><td><i class="fa-shield-check">:shield-check:</i> Validation</td><td><strong>Other answer is manually validated</strong></td><td></td><td></td></tr></tbody></table>

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**Does the lender have minimum energy efficiency requirements for development projects?**

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## Assessment Instructions

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<summary><strong>Intent</strong>: What is the purpose of this indicator?</summary>

This indicator identifies additional lender requirements when underwriting development projects. A well-defined sustainability strategy helps borrowers identify material issues and focus areas during each development phase.

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<details>

<summary><strong>Input</strong>: How do I complete this indicator?</summary>

Select yes or no. If yes, select all applicable sub-options.

**Post-construction monitoring:** If the lender has requirements on post-construction performance monitoring, specify the required number of years. If the lender monitors performance in perpetuity, for an infinite period, enter “100”.

### Terminology

**Air conditioning**

> Refers to energy efficient air-conditioning units, such as those rated with a high energy efficiency rating, and secondary measures to promote efficiency, such as strategic location and integration into building functionality design.

**Building energy management system**

> Computer‐based automated systems that monitor and control all energy‐related systems, including all mechanical and electrical equipment in buildings.

**Commissioning**

> Quality-orientated review and verification process during the design and construction phase, to ensure that the performance of facilities, systems and assemblies meet defined objectives during the operational phase.

**Energy codes or standards**

> Energy requirements set in building codes and standards such as US Energy Efficiency standards and International Energy Conservation Code (2012).

**Energy modeling**

> Refers to a virtual or computerized simulation of a building that can be used to estimate the energy use of a building and evaluate its energy efficiency.

**Energy use analytics**

> Analysis of energy use to determine discrepancies between baseline and actual energy use. Energy use analytics help determine whether energy use targets are reached, and can highlight opportunities to improve energy efficiency.

**High-efficiency equipment and appliances**

> Specification and purchase of electrical equipment and appliances that minimize the building’s energy needs.

**Integrative design**

> A design process that considers and involves multiple aspects, stakeholders and functions, instead of addressing each separately, to align and achieve objectives. Examples of integrative considerations during different stages of the design process can be found below:
>
> 1. Pre-design: Performing a preliminary analysis before the completion of schematic design that explores the relationships between the project and its surrounding environment to help reveal the optimum choices for the site, the users, and the owner.
> 2. Design and construction: Allowing experts from all disciplines to analyze the unique opportunities and constraints of the building site and to collectively explore synergies between disciplines and with neighboring sites.
> 3. Occupancy, operations, and performance: Measuring performance and setting up feedback mechanisms that involve various stakeholder groups.

**Lighting**

> Energy efficient lighting refers to units such as those rated with a high-energy efficiency rating. Common energy efficient lighting includes: LEDs, CFLs and halogen incandescents. It also includes aspects such as sensors, timers, and the promotion of natural daylight, to reduce the amount of light energy consumed.

**Maximum energy-use intensity post-occupancy**

> Requirement for buildings to achieve a predetermined energy use intensity once the building is fully operational.

**Occupant controls**

> Individual controls for heating, cooling and other building systems. They support individual comfort of building occupants, while reducing energy consumption. Occupant controls also enable occupants to respond rapidly to alleviate discomfort when it is experienced.

**Operational energy efficiency monitoring**

> Monitoring of energy consumed during the operational phase of a building. The operational energy consumption of buildings leads to substantial environmental impact. Monitoring consumption is an important basis for reducing this impact.

**Passive design**

> Passive design uses layout, fabric and form to reduce or remove mechanical cooling, heating, ventilation and lighting demand.

**Post-construction energy monitoring**

> Monitoring of energy consumption during the operational phase of the building, to identify that energy use objectives are being met.

**Requirements for planning and design**

> Policy requirements such as planning obligations, building codes and standards.

**Space heating**

> Energy efficient space heating systems for internal spaces within a building. This includes energy efficient mechanical systems, and maximizing the maintenance of internal heating via insulation, seals and windows and doors

**Sub-meter**

> A system that allows the measurement of utility use by an individual occupant within a multi-tenant property, such as individual electricity meters.

**Ventilation**

> The process of supplying and removing air through an indoor space. Energy efficient ventilation refers to the use of efficient mechanical or natural ventilation systems.

**Water heating**

> Energy efficient water heating systems such as those with a high-energy efficiency rating, including those which are demand-based, that do not lose energy on stand-by heating. Also includes efficient hot water distribution systems to reduce energy losses throughout the building.

</details>

<details>

<summary><strong>Validation</strong>: What evidence is required?</summary>

#### Other Answer

1. Other: State the lender’s requirement for planning and design.
2. Other: State the energy efficiency measure.
3. Other: Describe the lender’s actions to verify delivered performance.

It is possible to add multiple other answers.

<a href="/pages/utxKQNLSUKyW8QMeUwEi" class="button primary" data-icon="shield">Validation Basics</a>

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## Scoring

This indicator is not currently scored, and is used to inform future benchmarking considerations.

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<details>

<summary><em><strong>References</strong></em></summary>

BREEAM, International New Construction, 2016: 6 Health and wellbeing, 10 Materials

LEED BD+C: New Construction, v4: Sustainable Sites and Materials & Resources

BREEAM International New Construction, 2013: 04 Management and 11 Land Use; and BREEAM Communities Manual, 2012

LEED BD+C: New Construction, v4, Integrative Process

BC Green Building Roundtable, Roadmap for the Integrated Design Process

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