SENATE, No. 138

SECTION 1. The general court finds that it is the policy of the commonwealth to encourage the construction, rehabilitation and maintenance of buildings in the commonwealth in such a manner as to:

1.      promote better environmental standards for the construction, rehabilitation and maintenance of buildings;

2.      encourage economic development in green building technology within the Commonwealth;

3.      improve energy efficiency and increase generation of energy through renewable and clean energy technologies;

4.      increase the demand for environmentally preferable building materials, finishes and furnishings;

5.      improve the environment by decreasing the discharge of pollutants from buildings;

6.      create industry and public awareness of new technologies that can improve the quality of life for building occupants; and

7.      improve the health and productivity of building occupants; and

8.   to facilitate the foregoing, it is necessary to create a business and personal income tax credit.

SECTION 2.   Chapter 62 of the General Laws is hereby amended by inserting after section 6J the following section:-

Section 6K.      (a)  As used in this section, the following terms shall have the following meanings:

"Allowable costs", amounts properly chargeable to capital account, other than for land, which are paid or incurred for: construction or rehabilitation; commissioning costs; interest paid or incurred during the construction or rehabilitation period; legal, architectural, engineering and other professional fees allocable to construction or rehabilitation; closing costs for construction, rehabilitation or mortgage loans; recording taxes and filing fees incurred with respect to construction or rehabilitation; site costs, such as temporary electric wiring, scaffolding, demolition costs, and fencing and security facilities); and costs of furniture, carpeting, partitions, walls and wall coverings, ceilings, drapes, blinds, lighting, plumbing, electrical wiring and ventilation; provided that such costs shall not include the cost of telephone systems and computers, other than electrical wiring costs, and shall not include the cost of fuel cells or photovoltaic modules, including installation.

"Base building”, all areas of a building not intended for occupancy by a tenant or owner, including but not limited to the structural components of the building, exterior walls, floors, windows, roofs, foundations, chimneys and stacks, parking areas, mechanical rooms and mechanical systems, and owner-controlled and/or operated service spaces, sidewalks, main lobby, shafts and vertical transportation mechanisms, stairways and corridors.

"Credit allowance year", the later of:

(1) the taxable year during which the property, construction, completion or rehabilitation referred to in subsection (c) has been placed in service or has received a final certificate of occupancy or

(2) the first taxable year with respect to which the credit may be claimed pursuant to the initial credit component  certificate issued pursuant to subsection (h).

"Commissioning", the testing and fine-tuning of heat, ventilating and air                 conditioning and other systems to assure proper functioning and adherence to design criteria and the preparation of system operation manuals and instruction of maintenance personnel.

"DOER", the division of energy resources.

"EPA", the United States Environmental Protection Agency.

"Economic development area", an area as defined by section 1 of chapter 121C or an empowerment zone or enterprise community pursuant to section 1391 of the Internal Revenue Code.

"Eligible building", a building located in this state which is:

(1) classified as commercial pursuant to the Massachusetts state building code or similarly classified under any subsequent code; provided that any such building contains at least twenty thousand square feet of Interior space, or

(2)        a residential multi-family building with at least 12 dwelling units that contain at least 20,000 square feet of interior space, or

(3)        one or more residential multi-family buildings with at least 2 dwelling units that are part of a single or phased construction project that contains, in the aggregate, at least 20,000 square feet of interior space; provided that in any single phase of such project at least 10,000 square feet of interior space is under construction or rehabilitation, or

(4)        any combination of buildings described in clauses (1), (2) and (3), and

(5)        is not a building located on freshwater wetlands or tidal wetlands as defined by sections 40 and 40A of chapter 131, or on wetlands such that the construction thereof requires a permit pursuant to section 404 of the Federal Clean Water Act, 33 U.S.C. s 1344.

"Energy code", portions of the state building code that regulate energy or energy-related matters.

"Fuel cell", a device that produces electricity directly from hydrogen or hydrocarbon fuel through a non-combustive electrochemical process.

"Green base building", a base building which is part of an eligible building and  which meets the following standards:

(1)        energy and energy efficiency.

(i)         energy use is no more than 65  per cent, in the case of new construction of a base building, or 75 per cent, in the case of rehabilitation of a base building, of the use permitted under the energy code or, in the event such standard is revised or superseded, energy use shall meet such other energy efficiency standards that DOER shall establish in regulations in effect at the time the building permit was issued for the base building or rehabilitation thereof.

(ii)        all appliances and any heating, cooling and water heating equipment used in the base building and subject to the regulations promulgated by DOER shall meet the standards established by such regulations in effect at the time the building permit was issued for the base building or rehabilitation with respect to which a tax credit is claimed.

(2)           zoning, indoor air quality, building materials, finishes and

furnishings.

(i)         the base building shall comply with all applicable zoning, land use and erosion control requirements, stormwater management ordinances, building code requirements and environmental regulations; in the case of the rehabilitation of an existing building, all existing environmental hazards shall be identified and managed in accordance with applicable laws, regulations and industry guidelines.

(ii)                buildings classified pursuant to the  state building code, or similarly classified under any subsequent code, shall meet the following indoor air quality requirements:

(A)       ventilation and exchange of  indoor and outdoor air shall meet  the standards established by regulations promulgated by DOER ;

(B)        if smoking is permitted in specific areas of the building, separate air ventilation and circulation shall be provided for smoking and non-smoking   areas;

(C)       the ventilation system shall include an air purging system that is capable of replacing 100 per cent of the air on any floor, on a minimum of 2 floors at a time. The air shall be purged for a period of 1 week on every floor immediately prior to initial occupancy and on any floor that undergoes renovation immediately prior to re-occupancy, but if a taxpayer  obtains certification from a licensed professional engineer or certified industrial hygienist, pursuant to regulations, verifying that off-gassing and any other contamination can be reduced to comparable levels in less than 1 week, the period of purging may be shortened. The taxpayer shall maintain a copy of such certification.

(D)       building fresh air intake shall be located a minimum of 25 feet away from loading areas, building exhaust fans, cooling towers and other point sources of contamination and consistent with standards in regulations promulgated by DOER.

(E)       during  construction  or  rehabilitation,  the ventilation system components, pathways, and interior building materials shall be protected from contamination and moisture  degradation in accordance with an indoor air quality management plan for the construction or rehabilitation  process  that  meets the standards established in regulations promulgated by DOER. In the event that such components, pathways and materials are not protected from contamination or moisture degradation in accordance with such standards, they shall be cleaned or replaced prior to occupancy.

(F)       a licensed professional engineer, certified  industrial hygienist, pursuant  to  regulations,  shall conduct indoor  air quality testing with respect to representative areas within the  entire building, including spaces with potentially highest occupant density and use, immediately following occupancy, if any, and on an annual basis, to monitor supply and return air  and occupied spaces  for carbon monoxide, carbon dioxide, total volatile organic compounds, radon, and particulate matter. All indoor air quality testing shall meet the standards for duration and evaluation criteria in regulations promulgated by DOER.  Once radon measurements have been found to be satisfactory, subsequent annual radon testing shall not be required.  The taxpayer shall record baseline readings immediately following occupancy, if any. and annually thereafter. In the event that the taxpayer does not establish that during a taxable year during which any part of the building  is  occupied,  indoor  air quality met the standards established in regulations promulgated by DOER, the base  building shall not constitute a green base building.

(iii)       the  mechanical  plant  of the    building    shall    be commissioned  in accordance  with the standards established in regulations promulgated by DOER, which standards shall be informed by documents such as ASHRAE G-1 and the United States  General  Services  Administration  "Model Commissioning Plan and Guide Specifications".  For purposes of this clause the term "ASHRAE" shall mean the American Society of Heating, Refrigerating and Air Conditioning Engineers, Inc.

(iv)       separate  waste  disposal  chutes  or  a  carousel compactor system for recyclable materials shall be provided for the recycling of waste by occupants, or recycling  shall be otherwise facilitated by,  at a minimum, providing a readily accessible designated collection area or areas with sufficient space to store recyclable materials separately between collection  dates.                                      

(v)        all plumbing fixtures in the public areas of the building shall meet the plumbing fixture requirements of the state plumbing code or any successor provision in effect at the time the building or rehabilitation is placed in service.

(vi)              prior to initial occupancy and upon request, the owner of the building shall provide each tenant with:

 (1)       written notification of the opportunity to apply for a tax credit pursuant to this section and

(2)        written  guidelines  regarding opportunities to improve the energy efficiency and air quality of tenant space and to reduce and recycle waste streams.

(vii)      all building materials, finishes and furnishings used in the base building and subject to the regulations promulgated by DOER shall meet the standards established by such regulations in effect at the time the building permit was issued for the building or rehabilitation, but with respect to furnishings, this requirement shall apply only to newly purchased items.

(viii)      all tenant space in the building occupied by the owner must be green tenant space.

 “Green Building” shall have the following meaning: 

(1) a building that meets the criteria of at least a Silver rating according to the US Green Building Council’s LEED (Leadership in Energy and Environmental Design) Green building rating system; or

(2)   a building that meets the criteria at least a Two Globe rating according to the Green Building Initiative’s Green Globes rating system; or

(3)   a building that achieves at least a comparable numeric rating according to a nationally recognized, accepted, and appropriate numeric sustainable development rating system, guideline, or standard.

"Green tenant space", tenant space in a building if such building is an eligible building and if such tenant space complies with the following requirements:

(1)        energy and energy efficiency.

(i)         energy use for tenant space is no more than 65 per cent in the case of new construction or 75 per cent in the case of rehabilitation of the use permitted under the energy code or, in the event such standard is revised or superseded, energy use shall meet such other energy efficiency standards that DOER shall establish by regulations in effect at the time the building permit was issued for the improvements with respect to which a tax credit is claimed.

(ii)                all appliances and any heating, cooling and water heating equipment used in the tenant space and subject to the regulations promulgated by DOER shall meet the standards established by such regulations or, in the event that such standards are  revised,  the standards in effect at the time the improvements with respect to which a tax credit is claimed are placed in service.

(2)        code requirements,  indoor air quality,  building materials, finishes and furnishings.

(i)         the tenant space shall comply with all applicable building code requirements and environmental regulations.  In the case of rehabilitation of an existing building, all existing environmental hazards shall be identified and managed in accordance with applicable laws, regulations and industry guidelines.

(ii)        in the case of buildings classified, pursuant

to the state building code, or similarly classified under any subsequent code, ventilation and exchange  of indoor/outdoor air shall meet the standards established in regulations promulgated by DOER.

(iii)       for buildings in which smoking is permitted, the taxpayer shall ensure that, if smoking is permitted in the tenant space, it is permitted only in areas in which the air ventilation and circulation is separate from that for non-smoking areas.

(iv)       during  construction  or  rehabilitation, the ventilation system components and pathways and interior building materials shall be protected from contamination and moisture degradation in accordance with an indoor air quality management plan for the construction or rehabilitation  process  that  meets  the standards established in regulations promulgated by DOER. In the event that such components, pathways and materials are not protected from contamination in accordance with such standards, they shall be cleaned or replaced prior to occupancy.

(v)        a licensed professional engineer or certified industrial hygienist pursuant to regulations, shall conduct indoor air quality testing with respect to representative areas within the tenant space, including spaces with potentially highest occupant density and use immediately, following occupancy, if any, and on an annual basis, to monitor supply and return air and occupied spaces for carbon monoxide, carbon dioxide, total volatile organic compounds, radon, and particulate matter.  All indoor air quality testing shall meet the standards for duration and evaluation criteria required by regulations promulgated by DOER. Once radon measurements have been found to be satisfactory, subsequent annual radon testing shall not be required.  The taxpayer shall record baseline  readings immediately following occupancy, if any, and annually thereafter. In the event that the taxpayer does not establish that during a taxable year during which the tenant space is occupied, indoor air quality met the standards established in regulations promulgated by DOER, the tenant space shall not constitute green tenant space.        

(vi)       all plumbing fixtures in the tenant space shall meet the plumbing fixture requirements of the state plumbing code or other applicable regulations in effect at   the time the improvements with respect to which a tax credit is claimed are placed in service.

(iii)               all building materials, finishes and furnishings selected for use in the tenant space and subject to the regulations promulgated by DOER shall meet the standards established by such regulations or, in the event that such standards are revised, the standards in effect at the time the building permit was issued for the improvements with respect to which a tax credit is claimed, but with respect to furnishings, this requirement shall apply only to newly purchased items.

"Incremental  cost of building-integrated photovoltaic modules":

(1)        the cost of building-integrated photovoltaic modules and any associated inverter, additional wiring  or  other  electrical equipment or additional mounting or structural materials, less the cost of spandrel glass or other building material that would have been used in the event that building-integrated photovoltaic modules were not installed,

(2)        incremental  labor  costs  properly  allocable  to  on-site preparation, assembly and original installation of photovoltaic modules, and

(3)        incremental architectural and engineering services and  designs and plans directly related to the construction or installation of photovoltaic modules.

"LEED rating system", the Leadership in Energy and Environmental Design green building rating system criteria developed by the United States Green Building Council.

"Qualifying alternate energy sources", building-integrated and non-building-integrated  photovoltaic modules and fuel  cells installed to serve the base building or tenant space which have the capability to monitor their ac output, and which are validated upon installation, and annually thereafter, to ensure that such systems meet their design specifications.

"Substantial improvement", the reconstruction, rehabilitation, addition, repair or improvement of a structure, the cost of which equals or exceeds 50 per cent of the market value of the structure before the "start of construction" as defined in 780 CMR 3107.2.

"Tenant improvements", improvements which are necessary or appropriate to support or conduct the business of a tenant or occupying owner.

"Tenant space", the portion of a building intended for occupancy by a tenant or occupying owner.

(b) A taxpayer subject to tax under this chapter shall be allowed a green building credit against such tax but no credit shall be allowed under this section unless the taxpayer has complied with, the applicable requirements of  subsection (j), . The amount of the credit shall be the sum of all credit components, but the amount of each such credit component shall not exceed the limit set forth in the initial credit component certificate obtained pursuant to subsection (h). In the determination of such credit components, no cost paid or incurred by the taxpayer shall be the basis for more than one such component.

(1)        If a credit is allowed to a building owner pursuant to this subsection with respect to property, and such property or an interest therein is sold, the credit for the period after the sale which would have been allowable under this subsection to the prior owner had the property not been sold shall be allowable to the new owner. Credit for the year of sale shall be allocated between the parties on the basis of the number of days during such year that the property or interest was held by each.

(2)         If a credit is allowed to a tenant pursuant to this subsection with respect to property, and if such tenancy is terminated but such property remains in use in the building by a successor tenant, the credit for the period after such termination which would have been allowable under this subsection to the prior tenant had the tenancy not been terminated shall be allowable to the successor tenant. Credit for the year of termination shall be allocated between the parties on the basis of the number of days during such year that the property was used by each.

(3)        Notwithstanding any other provision of law to the contrary, in the case of allowance of credit under this section to a successor owner or tenant, as provided in subparagraph (1) or (2) of this paragraph, the commissioner of DOER shall have the authority to reveal to the successor owner or tenant any information, with respect to the credit of the prior owner or tenant, which is the basis for the denial in whole or in part of the credit claimed by such successor owner or tenant.

(c)  The green whole-building credit component shall be equal to the applicable percentage of the allowable costs paid or incurred by the taxpayer, whether owner or tenant, for either the construction of a green building or the rehabilitation of a building which is not a green building to be a green building, but the credit component shall not exceed the maximum amount specified in the initial credit component certificate.   The applicable percentage shall be 1.4 per cent, except that if the building is located in an economic development area, the applicable percentage shall be 1.6 per cent. The credit component amount so determined shall be allowed for the credit allowance year, but only

if:

(1) the taxpayer has obtained and filed both an initial credit component certificate and an eligibility certificate issued pursuant to subsection (h);

(2) certificate of occupancy for the building has been issued and

(3) where the credit allowance year is a year described in clause (2) of the definition of "Credit allowance year" of subsection (a), the green building or rehabilitation remains in service during such year.

Such credit component amount shall be allowed also for each of the next 4 succeeding taxable years with respect to which the taxpayer has obtained and filed an eligibility certificate pursuant to subsection (h), but the allowable costs may not exceed, in the aggregate, $150 per square foot with respect to the portion of the building which comprises the base building and $75 per square foot with respect to the portion of the building which comprises the tenant space.

(d)  The green base building credit component shall be equal to the applicable percentage of the allowable costs paid or incurred by the taxpayer, if the owner, for either the construction of a green base building or for the rehabilitation of a base building which is not a green base building to be a green base building, but the credit component shall not exceed the maximum amount specified in the initial credit component certificate. The applicable percentage shall be l per cent, except that if the building is located in an economic development area, the applicable percentage shall be 1.2 per cent. The credit component amount so determined shall be allowed for the credit allowance year, but only if:

(1)  the taxpayer has obtained and filed both an initial credit component certificate and an eligibility certificate issued pursuant to subdivision (h),

(2)  a certificate of occupancy for the building has been issued and

(3)  where the credit allowance year is a year described in clause (2) of  the definition of "Credit allowance year" of subsection (a), the green base building or rehabilitation of a base building remains in service during such year.

Such credit component amount shall be allowed also for each of the next 4 succeeding taxable years with respect to which the taxpayer has obtained and filed an eligibility certificate pursuant to subsection (h), but the allowable costs for the base building may not exceed, in the aggregate, $150 per square foot.

(e)  The green tenant space credit component shall be equal to the applicable percentage of allowable costs for tenant improvements paid or incurred by the taxpayer, whether owner or tenant, in constructing, including completing, tenant space, or rehabilitating tenant space which is not green tenant space to be green tenant space, but the credit component shall not exceed the maximum amount specified in the initial credit component certificate.   The applicable percentage shall be 1 per cent, except that if the building is located in an economic development area the applicable percentage shall be 1.2 per cent, but the owner, or a tenant who occupies fewer than 10,000 square feet, shall qualify for such green tenant space credit component only in the event that the base building is a green base building. The credit component amount so determined shall be allowed for the credit allowance year, but only if:

(1)  the taxpayer has obtained and filed an initial credit component certificate and an eligibility certificate issued pursuant to subsection (h) and

(2)  where the credit allowance year is a year described in clause (2) of the definition of "Credit allowance year" of subsection (a), the construction, completion or rehabilitation remains in service during such year.

Such credit component amount shall be allowed also for each of the next 4 succeeding taxable years with respect to which the taxpayer has obtained and filed an eligibility certificate pursuant to subsection (h), but the allowable costs for tenant space shall not exceed, in the aggregate, $75 per square foot. In the event that both an owner and tenant incur such costs for tenant space with respect to the same tenant space and such costs in the aggregate exceed $75 per square foot, the owner shall have priority as to costs constituting the basis for the green tenant space credit component.

(f)   A fuel cell credit component shall be allowed for the installation of a fuel cell which is a qualifying alternate energy source, installed to serve a green building, green base building or green tenant space. The amount of the credit component shall be 6 per cent of the sum of the capitalized costs paid or incurred by the taxpayer with respect to each fuel cell installed to serve such building or space, including the cost of the foundation or platform and the labor cost associated with installation, such capitalized costs not to exceed $1,000 per kilowatt of installed dc rated capacity, but the credit component shall not exceed the maximum amount specified in the initial credit component certificate. The fuel cell credit component amount so determined shall be allowed for the credit allowance year, but only if:

(1)  the taxpayer has obtained and filed an initial credit component certificate and an eligibility certificate issued pursuant to subsection (h) and

(2)  where the credit allowance year is a year described in clause (2) of the definition of "Credit allowance year" of subsection (a), the fuel cell remains in service during such year.

Such credit component amount shall be allowed also with respect to each of the 4 taxable years next following during which the fuel cell remains in service, but the amount of any federal, state or local grant received by the taxpayer and used for the purchase and installation of such fuel cell and which was not included in the federal gross income of the taxpayer shall be subtracted from the amount of such cost.

(g)   A photovoltaic module credit component shall be allowed for the installation of photovoltaic modules which constitute a qualifying alternate energy source installed to serve a green building, green base building or green tenant space. The amount of the credit component shall be 20 per cent of the incremental cost paid or incurred by the taxpayer for building-integrated photovoltaic modules and 5 per cent of the cost of non-building-integrated photovoltaic modules, in either case such cost not to exceed the product of (i) $3 and (ii) the number of watts included in the dc rated capacity of the photovoltaic modules, but the credit component shall not exceed the maximum amount specified in the initial credit component certificate. The credit component amount so determined shall be allowed for the credit allowance year, but only if:

(1)  the taxpayer has obtained and filed an initial credit component certificate and an eligibility certificate issued pursuant to subsection (h); and

(2)  where the credit allowance year is a year described in clause (2) of the definition of "Credit allowance year" of subsection (a), the modules remain in service during such year.

Such credit amount shall be allowed also for the 4 taxable years next following during which the modules remain in service, but the amount of any federal, state or local grant received by the taxpayer and used for the purchase and/or installation of such photovoltaic equipment and which was not included in the federal gross income of the taxpayer shall be subtracted from the amount of such cost.

(h)  (1)  Upon application by a taxpayer, DOER shall issue an initial credit component certificate where the taxpayer has made a showing that the taxpayer is likely within a reasonable time to place in service property which would warrant the allowance of a credit under this section. Such certificate shall state the first taxable year for which the credit may be claimed and an expiration date, and shall apply only to property for which an occupancy permit has been issued by such expiration date. Such expiration date may be extended at the discretion of DOER, in order to avoid unwarranted hardship. Such certificates may be issued in years 2006-2008. Such certificates shall state the maximum amount of credit component allowable for each of the 5 taxable years for which the credit component is allowed under subsections (b) to (g), inclusive.

(2) For each taxable year for which a taxpayer claims a credit under this section with respect to a green building, green base building or green tenant space, a fuel cell, or photovoltaic modules, the taxpayer shall obtain from an architect or professional engineer licensed to practice in this state an eligibility certificate. Such certificate shall consist of a certification, under the seal of such architect or engineer, that the building, base building or tenant space with respect to which the credit is claimed is a green building, green base building or green tenant space, respectively, that the fuel cell or photovoltaic modules constitute qualifying alternate energy sources and remains in service. Such certification shall be made in accordance with the standards and guidelines in effect at the time the building permit was issued for the property which is the basis for the credit .  Such certification shall set forth the specific findings upon which the certification was based. The taxpayer shall file such certificate,  and the associated  initial credit component certificate, with the claim for credit and shall file duplicate copies with DOER. Such certificate shall include sufficient information to identify each building or space, and such other information as DOER and the commissioner shall prescribe.

(3)  If DOER has reason to believe that an architect or professional engineer, in making any certification under this subsection, engaged in professional misconduct, then DOER shall so inform the board of registration of architects or the board of registration of engineers and land surveyors.

(i)  Each taxpayer shall, for any taxable year for which the green building credit provided for under this section is claimed, maintain records of the following  information:

(1)        annual energy consumption for building, base  building  or tenant space;

(2)        annual results of air monitoring;

(3)        annual confirmation that the building, base building or tenant space  continues to meet requirements regarding smoking areas, if provided;

(4)        tenant guidelines, if applicable;

(5)        all written notification of tenants and requests to remedy any

indoor air quality problems;

(6)        initial   and   annual , by month,   results   of  validation   of performance of photovoltaic modules and fuel cells: and

(7)        certifications as to off-gassing and other contamination, as prescribed in this section, where applicable.

(j)  Each taxpayer shall also provide to DOER the information described in subsection (i), in the form and at the time prescribed by DOER, such time to be determined in consultation with the commissioner. Such information shall be provided to DOER with respect to each taxable year with respect to which the taxpayer claims a credit under this section.

(k)  (1) The commissioner of DOER shall promulgate regulations necessary to the implementation of this section. Such regulations establishing standards may be informed by the LEED rating system. Such regulations shall construe the provisions of this section in such a manner as to encourage the development of green buildings, green base buildings and green tenant space and to maintain high but commercially reasonable standards for obtaining tax credits hereunder. Such regulations shall establish a reasonable time or period of time for submission of applications, and shall establish a method for allocating initial credit component certificates among eligible applicants. Regulations, standards or requirements adopted pursuant to this section shall apply only to a green base building, a green building or a green tenant space. DOER shall review and update such regulations at least every 2 years from the date on which such regulations are promulgated.

(2)  The commissioner of DOER shall promulgate the following, with respect to base buildings:

(i)         regulations establishing standards for energy use for eligible buildings.

(ii)   regulations establishing standards   for   appliances   and heating, cooling  and water heating equipment that, on the effective date of this section, are covered by specifications from organizations such as the United States Department of Energy  or  Environmental  Protection  Agency.    The development of such regulations shall be informed by such specifications.  DOER shall  review and   update   such regulations at least every 2 years from the date on which such regulations are promulgated.

(iii)       regulations indicating the methodology by which a taxpayer shall  demonstrate compliance with paragraph 1 of the definition of "green base building" of subsection (a). Such regulations shall include, at a minimum, a requirement to conduct hourly computer modeling for 1 year.

(iv)       regulations establishing standards for the commissioning of buildings.

(3)  The commissioner of DOER shall promulgate regulations establishing standards, with respect to base buildings, for ventilation and exchange of indoor/outdoor air,   indoor air quality management plans for the construction or rehabilitation process, and indoor air quality with respect to levels of carbon monoxide, carbon dioxide and total volatile organic compounds, radon and particulate matter.

(4)  The commissioner of DOER shall promulgate the following, with regard to base buildings:

(i)         regulations s establishing standards for building materials, finishes and  furnishings regarding minimum percentages of recycled  content and  renewable source material and maximum levels of toxicity and volatile organic compounds and any other standards that the DOER deems appropriate.  Standards shall be developed for building materials, finishes  and  furnishings,  including  but  not limited to concrete and concrete masonry units; wood and  wood products;    millwork    substrates;  insulation;  ceramic, ceramic/glass and cementitious tiles; ceiling tiles and panels; flooring and carpet; paints, coatings, sealants and adhesives; and furniture.The DOER shall review and update such regulations at least every 2 years from the date on which such regulations are promulgated.

(ii)        regulations establishing standards for buildings located in areas where water use is not metered, which regulations shall  require,  at a minimum, that the building include one of the following features:

(A) a gray water system that recovers non-sewage waste water or uses  roof or ground storm water collection systems, or recovers ground water from sump pumps;

(B)  for  buildings with a cooling tower system, such system shall be designed with delimiters to reduce drift and evaporation; or

(C)  for buildings with exterior plants, all  such  plants  shall be tolerant  of climate, soils and natural water availability  and  shall  not  receive  watering  from municipal potable water after a period of establishment is complete.

(iii)       regulations establishing standards for buildings located in areas that do not have sewers or that have designated storm sewers, which regulations shall require, at a minimum, that the building shall include one of the following features:

(A)  an oil grit  separator  or  water  quality  pond  for pretreatment of  runoff from any surface parking areas; or

(B)       at least 50 per cent of non-landscaped areas, including roadways, surface parking, plazas and pathways, if any, shall be comprised of pervious paving materials.

(iv)       regulations indicating the methodology by which taxpayers shall demonstrate compliance with subparagraphs (2) and (3) of the definition of "green base building” of subsection (a).

(5)  The commissioner of DOER shall promulgate regulations, with respect to tenant space, indicating the methodology by which taxpayers shall demonstrate compliance with paragraph (1) of the definition of "green tenant space" of subsection (a).

(6)  The commissioner of DOER shall promulgate regulations, with respect to tenant space, indicating the methodology by which taxpayers  shall  demonstrate compliance with paragraph (2) of the definition of "green tenant space" of subsection (a).

SECTION 3. Funding for 3 full-time staff positions shall be made available to DOER for completion of the regulations required under this act and for administration of this act. Additional funding of $150,000 shall be made available for state wide educational seminars and other education programs to assist developers, tenants, and any others who may participate in the green building tax credit program.

SECTION 4.  On or before April 1, 2009 the commissioner of the division of energy resources shall prepare a written report regarding the number of certifications and taxpayers claiming the credit provided for under this act;  the amount  of the credits claimed; the geographical distribution of the credits claimed; and any other such available information the commissioner determines to be appropriate.    The commissioner shall ensure that the information is presented and classified in a manner consistent with statutory confidentiality  requirements.  The report shall be filed with the governor, the president of the senate, the speaker of the house of representatives, the chairperson of the senate finance committee and the chairperson of the house ways and means committee.