Climate Benefit District

Seizing Opportunity
Local governments around Washington State today face serious challenges on three fronts: deteriorating or inadequate public infrastructure, dramatic changes in economic conditions and financial resources, and the reality of climate change and greenhouse gas regulations.
Integrated solutions that increase urban livability, support and provide transit, conserve scarce energy and water resources, and increase access to healthy food are central to addressing these challenges. We need lively, livable urban communities, coupled with a valuation of the ecological services provided by working lands.
In Puget Sound, our rich cultural and environmental resources form an interlocking web. To preserve and build upon these strengths, the integrated response must manage runoff, reduce and recycle waste, and find ways to restore the ecosystems that are vital to our region.
Washington State’s commitments to reduce greenhouse gas emissions inform the solutions. Our communities will need new strategies to prepare for a carbon-regulated future. Neighborhood level solutions will require eliminating barriers and leveraging diverse interests to create sustainable communities.
A CBD is a neighborhood-level response that integrates the essential components of green, livable urbanism.
Coordinated Response
Proposed legislation will enable a coordinated set of local strategies, through Climate Benefit Districts (CBDs). The Climate Benefit District gives local governments the tools they need to improve public infrastructure performance and efficiency; to foster local strategies for creating “green” jobs and strengthening communities’ economic and social sustainability; and provide incentives for low-impact, sustainable private development.
A CBD is a neighborhood-level response that integrates the essential components of livable, climate-friendly urbanism. Providing a replicable model for carbon trading markets, it will leverage local opportunities and stimulate the green economy. A CBD is designed to:
- Focus affordable development in appropriate locations to maximize transit use and preserve rural areas.
- Leverage public investment to encourage the green economy.
- Connect land use and transportation best practices and policies to meet GHG reduction goals.
- Synchronize efforts across the state, giving cities the same set of tools that streamline regulations, incentives and financing
mechanisms.
How a CBD works
Enacted into law, CBDs will allow cities to set smart growth in motion — framing a designation process and becoming eligible for associated grants and fees.
Working with property owners in a geographically compact area, any city within an urban growth area could start the process. Alternatively, a city could respond to a petition by property owners or residents to create a CBD.
Minimum performance criteria for all CBDs in the state are set by statute. CTED will be able to review and provide technical assistance and ensure statewide compatibility with GHG reduction goals. Each CBD will be set by a city-designated “Community Sustainability Agency” (CSA) that will provide coordination, oversight and accountability. Individual CBDs will implement a Neighborhood Sustainability Plan to identify and design the most appropriate, climate-friendly actions for each unique setting.
CBD boards will work through the CSA to manage the design, building, and ongoing operations for specific neighborhoods. This process will include making climate-friendly infrastructure investments and employing appropriate incentives or programs to support new, green development and/or retrofits.
One Toolbox
There are many tools and ideas already aimed at creating sustainable communities, but they are scattered and incomplete. Combined into a streamlined package, a CBD can do much more to meet our many challenges. A CBD creates a priority investment site, leveraging public and private resources to manage growth pressures and improve environmental performance. A CBD may also provide a managing entity that can receive and distribute carbon market revenues.
The tools in this package will:
- Support the creation of “green jobs”.
- Support livable, diverse and affordable urban neighborhoods.
- Capture the innovations and life cycle cost savings for district level energy and infrastructure solutions.
- Rebuild and reinvest in communities in ways that reduce the demand for driving.
- Help public and private interests to work together in developing healthy, vibrant urban communities aimed at achieving carbon reduction goals.
- Send a clear policy signal to attract desirable private investment and coordinate public action from multiple levels of government.
- Give communities the means to meet major environmental and economic challenges while remaining responsive to local conditions and opportunities.
The CBD Toolbox
Access to capital for high-performance, district level infrastructure and shared facilities.
- SEPA preference, reduced risk, and future proofing for quality private development.
- Financial and development incentives (density bonuses, tax credits, etc.)
- Private/public partnership opportunities for district level solutions.
- Shared facilities and elimination of institutional barriers and silos.
- Verifiable, investment-grade performance eligible for carbon markets and ESCOs.
- Access to PDA-type strategies, including public finance tools.
Next Steps
A CBD bill will be introduced to Washington legislature in January 2009. Discussions are continuing to determine how a CBD may participate in a carbon market.

A CBD will encourage:
- Walkable, bike-friendly, transit-supported neighborhoods
- Jobs-to-housing balance, including a mix of uses and a mix of incomes
- Open space and green infrastructure
- High-performance buildings
- District level energy and resource recovery systems
- Programs and systems to maximize water conservation
- High transit connectivity and low per capita VMT
- Density minimums and standards for affordability and high-quality mixed uses
- Building efficiency in line with Architecture 2030 to reach carbon neutrality
- Access to local, organic food and open space
- Use of recycled and local materials for new construction
View the Summary of Proposed GREEN Communities Act of 2009 (PDF 2008/12/23)
For more information about this draft legislation please conatct:
Stephen Antupit
206.623.3344
http://mithun.com
Susan Drummond and Alice Ostdiek
206.447.4400
http://www.foster.com/
News
- Sustainable Industries: Washington considers urban planning district by Charles Redell, 9.4.09.