Last Tuesday, a divided City Commission had a tense discussion on prioritizing 20 actions from the Climate Action & Adaptation Plan (CAAP) and next steps for adoption.
Ultimately, there appears to be support for adopting the entire plan, and the Commission will decide the actual agenda item for the August 12 meeting when they reconvene on July 29.
Our take: This is very concerning for businesses. The plan includes 197 actions that staff would begin to operationalize, and there is very little clarity on what implementation could look like. We have heard significant concerns over several pieces within the plan that could lead to burdensome new mandates, unachievable targets, and conflicting priorities that could drive up the cost of housing, construction and development.
Several items in the Business and Industry Chapter (see below) recommend that the city:
- Evaluate an Energy Benchmarking and Transparency Ordinance (mandated annual reporting of energy data and a public scorecard)
- Audit requirements
- Create building performance standards
- Implement retro commissioning requirements
If the plan is adopted – these items are not immediately in effect – it is giving direction to explore implementation and operationalization. It will, however, create immediate uncertainty and act as a barrier to investment.
Additional Concerns:
- Costly and Compulsory: The recommendations include 71 programs, 84 processes, 38 policy changes and 4 new pilots. It also has 11 compulsory recommendations to be required by law and 41 services.
- Conflicting Priorities on Housing: The plan states support for access to affordable housing, but then sets a goal of electrifying all new residential buildings and 11% of existing buildings per year. It also prioritizes encouraging adopting the most stringent energy codes.
- Electrification (particularly for existing housing) is incredibly expensive and the energy code is being challenged by Michigan Home Builders because it will add tens of thousands of dollars to projects with a very long payoff period.
- Disproportionate Impact: New buildings, large/sophisticated employers, as well as areas that have seen major investment, will navigate and have much less impact from the recommendations. Areas that have seen a lack of investments and with older infrastructure would bear a disproportionate impact if the items related to industry are advanced.
- Exploring New Taxes: The plan also includes language encouraging the evaluation of new taxes and other funding mechanisms for residential home energy updates and bicycle/e-bike programs.
Why it Matters: This plan and its recommendations come at a time when commercial offices and the restaurant/retail industry are struggling. Any new requirements are just one more extraneous item that places an additional burden on some of our community’s favorite gathering places.
These new programs and requirements would only pertain to Grand Rapids and would further drive up the cost of being in the urban core and could throw up new barriers to redevelopment and future investment. If we want our City to continue to be competitive and see growth, this plan is a clear step in the wrong direction.
HOW TO ENGAGE
Your voice matters— email or call the Commissioners (info here) or speak at the July 29 meeting at 7:00 PM at the Gerald R. Ford Academic Center to give public comment. Multiple Commissioner mentioned not hearing enough from the community on this plan, so every contact counts. Information on the plans follows below!
- Being brief is ok!
- Be polite and share your knowledge – you are an expert explaining concerns based on your experience.
What Happens Next:
- July 29: Commission will discuss and set the agenda item for August 12.
- August 12: Expected vote to adopt the full CAAP
Learn More
- Watch the recording of staff presentation
- Read the full report
- Find additional CAAP materials from the Office of Sustainability
If you have any questions, contact Trevor Blood at trevor@grandrapids.org.
Trevor Blood
Local Government Affairs Coordinator
Grand Rapids Chamber