The economic vitality goal is comprised of two performance areas: quality jobs and sound investment. The quality jobs performance area includes seven measures and the sound investment performance area includes six measures. A project's economic vitality score is calculated by averaging its scores for the quality jobs and sound investment performance areas, which are described below.
The quality jobs performance area is calculated by averaging the scores for five of the seven measures: relative impact on employment, direct jobs' wages and benefits, direct jobs' career access and advancement opportunities, construction jobs' wages and benefits, and construction jobs' career access and advancement opportunities. Information regarding the number of direct jobs and construction jobs is displayed, though is not calculated as part of the project score.
This measure considers whether the investment will have a relatively large or catalytic impact on employment in the area and, thus, whether job creation and retention priorities are being advanced.
The response for this question is Yes or No. Documentation to support the claim should be provided. The scoring accommodates diversity of context. For example, 10 jobs in a town of 5,000 may have a relatively large impact while 10 jobs in a city of 500,000 may not; or a catalytic investment may create few direct jobs but generate a significant number of jobs by expanding the customer base of related businesses. If the response to this measure is Yes (relatively large or uniquely catalytic impact on employment), a bonus score of 100 is assigned. If the response is No (not a large or uniquely catalytic impact on employment), no bonus score is assigned. Additional information about this measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Information regarding direct job creation and retention is reported in order to provide a sense of expected impact. The information is not included in the project's TBL score because there is no standard for defining a "good" or "bad" number of jobs created and retained. The number of total direct jobs is entered by the Tool user, as is the percent of total direct jobs that are retained and/or relocated.
Jobs are entered as full-time equivalent (FTE), which is based on a 40 hour per week workload (2080 hours per year). An employee working 20 hours per week is considered .50 FTE, while two employees each working 20 hours per week equal 1.0 FTE. For retained jobs, information regarding the imminent threat should be provided in the documentation. Jobs performed by independent contractors can be included in this figure and should be noted in the documentation.
The number of jobs per sector is identified because some of the Tool calculations consider impacts by industry. This information is used in calculations regarding wages, industry eco-efficiency, and environmental health. A pull-down menu of North American Industry Classification System (NAICS) codes is used to identify the project sectors. NAICS is the standard used for categorizing businesses by sector or industry (http://www.census.gov/eos/www/naics/). NAICS codes begin at the two-digit level, with further specification of sub-sectors provided up to the six-digit level. For example, 31 manufacturing, 311 food manufacturing, 3112 grain and oilseed milling, 31121 flour milling and malt manufacturing, and 311212 rice milling. For most industries, the user is asked to provide the three-digit level. Retail and wholesale stop at the two-digit level, while a few others go one or two levels deeper. The level of NAICS requested is determined based on the level of variation in environmental impact that occurs in the sector (i.e., more detailed information is only requested when impacts vary widely across the sub-sectors of an industry) and wage data availability (i.e., county level data is often not available below the three digit level).
Up to five industries may be identified for a project. If the project includes more than five industries, the top five with respect to job creation and retention should be entered. If the project is an infrastructure investment directly serving an economic development project (e.g., a road to a tech park, water treatment technology for a manufacturing facility) enter the industry or industries and jobs created and/or retained for the project that the infrastructure is designed to serve. Additional details regarding data sources and alternatives considered for this measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Investments with a strong triple bottom line not only create jobs, they create jobs that pay well and include benefits. Good wage jobs with benefits have positive impacts on workers, employers, and the community at large. Well-paying jobs contribute to community economic vitality by stimulating the economy, generating tax revenues, and reducing the need for public assistance. Reward for work is a basic tenet of our society, with the expectation that full-time employment is sufficient to meet basic needs. Along with good wages, employee benefits are an important aspect of job quality. Benefits such as health insurance, sick days and personal days, vacation days, and retirement contributions foster workforce health and productivity, reduce financial burdens on taxpayers, and contribute to the attraction and retention of skilled workers.
The score for this measure is computed by calculating the average of the three sub-measures below: relative wages, provision of employee benefits, and tenant incentives for provision of employee benefits.
Average Project Wage 120% or Greater Than County Average Wage
This sub-measure compares the project average wages to county average wages and assigns bonus points if the project wages are 120% or greater than county average. The calculation is made with the user defined average project wages or, if unavailable, the NAICS defined average project wage in the county. Average wages per NAICS are defined using the Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages. Multiple NAICS are handled with weighting. For example, if the project includes three industries (A, B, C) and the industries provide 25%, 25%, and 50% of the jobs created and retained, respectively, then the average wage calculation is weighted accordingly (.25*average wage in A + .25*average wage in B + .50*average wage in C).
Bonus points are provided if the investment industry or industries pay higher than average wages for the area. There is no penalty if the project does not meet this standard because, in general it is better to generate some wages than none (e.g., taking some lower paying tourism jobs over no jobs at all). Also, the measure score is based on county and industry averages that may be too broad to accurately describe the project. Thus, while the TBL is defined as having good wages, projects do not lose points if the wages are not above average. Additional details regarding data sources and alternatives considered for this sub-measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Percent of Direct Jobs that Provide Good Quality Benefits to Employees
The percentage of direct employees of the completed project expected to receive good quality benefits is entered. Good quality benefits refer to the type of benefits (e.g., health coverage for employee and family, sick days and personal days, vacation days, retirement), as well as the accessibility and affordability of the coverage (e.g., employee contributions, co-pays). The higher the percentage of covered employees the better the project's score. Additional information regarding this sub-measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Incentives for Tenant Provision of Employee Benefits
In many cases, direct permanent jobs are created by a tenant at the project location rather than directly by the facility owner (e.g., owner of office building or shopping center). In these cases, while the project owners do not control the amount or type of employee benefits provided, they may provide incentives to tenants to encourage the provision of quality benefit programs. A bonus point is provided to projects with tenants when incentives are provided for tenant provision of benefits. If tenant incentives are not offered or if this information is not known, there is no impact on the project score.
This measure considers the availability of career access and advancement opportunities that allow traditionally disadvantaged and underutilized members of society to build skills and contribute productively to society. Depending upon the community, these populations may include people of color, veterans, disabled individuals, women, and individuals re-entering society from the justice system. A number of strategies, if well designed and executed, can positively address barriers to employment entry and advancement.
This measure considers the presence of four career access and advancement strategies: hiring goals and performance monitoring; recruitment, training, and placement partnership; continuing education incentives; and partnership with underrepresented businesses. The score for this measure is calculated by taking the average of the four sub-measure scores, as described below.
Hiring Goals and Performance Monitoring
Hiring goals and performance monitoring can facilitate improvements in employment access and advancement by defining desired outcomes and tracking progress. Hiring goals should be defined with relevant community and agency input in order to ensure that they respond to the unique context of the place and project.
This sub-measure considers whether there will be agreements to collaborate with relevant workforce development and/or community-based organizations to define hiring targets appropriate to the area's population and monitor performance (i.e., tracking baseline information, effort, requests and considerations, and results). Depending upon community context, target populations could include low-income residents, women, people of color, veterans, disabled individuals, or formerly incarcerated individuals. A range of strategies may be applied, including first source hiring agreements that provide target populations with effective notice of available positions along with exclusive consideration for a specific time period prior to open hiring. The parties to the agreement may vary with context and could include, for example, the developer and a community group or funder.
A project earns 100 points if binding agreements will be in place, 50 points if non-binding agreements will be in place, and 0 points if no agreement will be in place. Additional points are provided for the presence of binding agreements because they provide a higher degree of accountability.
Recruitment, Training, and Placement Partnership
Improvements in employment access and advancement are facilitated when appropriate recruitment, training, and placement activities are in place. Outreach, intake, screening, and referral are more likely to be effective if they are tailored to the target audience and delivered through an organization with a proven track record that demonstrates they have the trust and skills necessary to successfully work with the target population.
This sub-measure considers whether agreements will be in place to partner with relevant community-based and/or public organizations to conduct recruitment, training, and placement appropriate to the defined target populations (e.g., cultural competency, success training and placing traditionally disadvantaged or underutilized populations). A project earns 100 points if binding agreements will be in place, 50 points if non-binding agreements will be in place, and 0 points if no agreement will be in place. Additional points are provided for the presence of binding agreements because this provides a higher degree of accountability.
Continuing Education Investments
Career development requires both access and advancement opportunities. Investments in continuing education help individuals build skills necessary for advancement while increasing their contribution to organizational productivity and competitiveness.
This sub-measure considers whether agreements will be in place to provide staff development and training. Examples of continuing education investments include partnerships with higher education institutions to facilitate skills development, on-going skills training on the job, and contributions toward continuing education (e.g., workshops, seminars, courses). A project earns 100 points if binding agreements will be in place, 50 points if non-binding agreements will be in place, and 0 points if no agreement will be in place. Additional points are provided for the presence of binding agreements because this provides a higher degree of accountability.
Partnership with Underrepresented Businesses
The opportunity to start and grow a successful business may be limited by exclusion from networks and capital necessary to compete. This measure aims to ensure that entrepreneurial talent can thrive and that diverse community members can successfully compete for business. Expanding business opportunity to underrepresented populations requires more than posting a public notice. Successful strategies are tailored to the community while building on proven programs to utilize, mentor, contract with, or partner with underutilized businesses.
This sub-measure considers whether agreements will be in place to utilize, mentor, or partner with underutilized businesses. A project earns 100 points if binding agreements will be in place, 50 points if non-binding agreements will be in place, and 0 points if no agreement will be in place. Additional points are provided for the presence of binding agreements because this provides a higher degree of accountability.
Information regarding construction jobs is reported in order to provide a sense of expected impact. The information is not included in the project's TBL score because there is no standard for defining a "good" or "bad" number of jobs created and retained. The number of direct construction labor hours is entered. Construction jobs reported as full-time equivalent (FTE) can be converted by multiplying the FTE by 2,080 (full time hours per year). For example, 50 FTE construction jobs that will last one year are equal to 104,000 construction hours.
Investments with a strong triple bottom line not only create jobs, they create jobs that pay well and include benefits. Good wage jobs with benefits have positive impacts to workers, employers, and the community at large. Well-paying jobs contribute to community economic vitality by stimulating the economy, generating tax revenues, and reducing the need for public assistance. Reward for work is a basic tenet of our society, with the expectation that full-time employment is sufficient to meet basic needs. Along with good wages, employee benefits are an important aspect of job quality that can foster workforce health and productivity, reduce financial burdens on taxpayers, and contribute to the attraction and retention of skilled workers. Additional information regarding this measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
The score for this measure is computed by calculating the average of the five sub-measures described below: employee classification, wages, health insurance, retirement benefits, OSHA compliant training, and Project Labor Agreements.
Proper classification and availability of certified payroll records
Proper classification of workers as employees promotes fair competition and ensures that payroll taxes, worker's compensation and other state- and federally-required funds are paid. When workers are misclassified as independent contractors rather than employees, contractors can unfairly compete by producing low bids achieved by passing costs on to workers and society at large. Making certified payroll records available is an important mechanism for demonstrating that workers are not misclassified as independent contractors or improperly paid.
This sub-measure considers whether workers will be properly classified as employees and certified payroll records are available to a public entity or advisory body. A project earns 100 points if a binding agreement will be in place and 0 points if no agreement will be in place.
Prevailing Wages or Like Pay
Prevailing wage standards establish a baseline for wages and benefits in construction that are unique to specific geographic locations. Prevailing wage is typically determined by conducting a survey of contractors and is usually set as either the median or modal package of wages and benefits. Prevailing wage requirements help reduce unfair bidding based on undercutting of standard wage and benefit packages in the region.
This sub-measure considers whether there will be a legally binding agreement to pay state defined prevailing wage rates for the trade or, where appropriate, "like pay" for the trade in the benefit area. Like pay refers to the average pay for the trade in the project area and may be an appropriate substitute for prevailing wage if the survey area establishing prevailing wage does not adequately reflect the project context (e.g., a rural project with wages set at a metro level). A project earns 100 points if a binding agreement will be in place and 0 points if no agreement will be in place.
Health Benefits
Health benefits may be delivered through direct coverage of the employee by the employer (e.g., health insurance), coverage of the employee through employer contribution to a trade association (e.g., payment into benefit program offered by trade association), or as a supplemental or discretionary benefit (e.g., payments to health savings account, extra pay in lieu of coverage).
This sub-measure considers whether the project will include a legally binding agreement to provide health insurance benefit options to construction employees. A project earns 100 points if a binding agreement will be in place and 0 points if no agreement will be in place.
Retirement Benefits
Retirement benefits may be delivered through direct coverage of the employee by the employer (e.g., health insurance), coverage of the employee through employer contribution to a trade association (e.g., payment into benefit program offered by trade association), or as a supplemental or discretionary benefit (e.g., extra pay in lieu of coverage).
This sub-measure considers whether the project will include a legally binding agreement to provide retirement benefit options to construction employees. A project earns 100 points if a binding agreement will be in place and 0 points if no agreement will be in place.
Safety Training
OSHA compliant safety training is standard practice for a high-quality business. Workers who go through registered apprenticeship programs typically receive this training, which is designed to increase safety on the job and decrease work-related injuries and fatalities.
This sub-measure considers whether the project will include a legally binding agreement to ensure that all workers have participated in OSHA compliant 10-hour safety training, and that supervisors have received the OSHA compliant 30-hour training. A project earns 100 points if a binding agreement will be in place and 0 points if no agreement will be in place.
Project Labor Agreement
Project labor agreements establish key labor and management terms for a specific project. In general, project labor agreements (PLAs) address wages, hours, working conditions and procedures for resolving disputes, including agreements that restrict strikes or lock-outs. PLAs create a comprehensive framework that sets the terms for a project and requires all contractors and sub-contractors on the project to comply with the standards. The PLA can be inclusive of union and non-union workers. While responsible contracting standards may address issues such as wages and benefits that is not always the case. PLAs are distinctive because they are established and implemented in consultation with worker organizations. This helps to ensure that workers perspectives are considered and provides standing to verify and enforce agreements.
This sub-measure considers whether a project labor agreement is in place. For projects whose total cost is less than $10 million, a project earns 100 bonus points if a project labor agreement will be in place and 0 points if no agreement will be in place (total score not affected if no PLA will be in place). For projects whose total costs are $10 million or more, 100 points are earned if a project labor agreement will be in place and 0 points are earned if no agreement will be in place.
This measure considers the availability of construction career access and advancement opportunities that allow traditionally disadvantaged and underutilized members of society to build skills and contribute productively to society. Depending upon the community, these populations may include people of color, veterans, disabled individuals, women, or individuals re-entering society from the justice system. A number of strategies, if well designed and executed, can positively address barriers to employment entry and advancement.
This measure considers the presence or absence of five construction career access and advancement strategies: registered apprentice or training program; apprentice utilization; non-apprentice hiring goals; apprentice hiring goals; and utilization of underrepresented business. The score for this measure is calculated by taking the average of the five sub-measure scores, which are detailed below. Additional information regarding this measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Registered Apprentice or Training Program
Apprenticeship programs are essential for building workforce skills and capacity. Registered apprenticeship programs are regulated by federal and state governments and are required to meet industry standards for graduating workers who can obtain employment in their field of training. Not all apprenticeship programs are registered, so contractors should provide documentation that they participate in a recognized program.
This sub-measure considers whether the contractor will be a registered apprentice program or training participant. A project earns 100 points if they will be and 0 points are earned if they will not be. The sub-measure is not applied if the investment does not include any construction activity.
Apprentice Utilization
Apprenticeship training programs typically require a combination of classroom and on-the-job training. Contractors need to hire apprentices so that apprentices receive the experience necessary to graduate and move into full employment. At the same time, apprentices are paid less than the journeyman wage rate: in order to ensure quality performance and prevent labor abuses, federal and state regulations specify maximum apprentice utilization.
This sub-measure considers whether a binding agreement will be in place to utilize apprentices to the maximum ratios allowed by state or federal regulations. A project earns 100 points if there will be such an agreement and 0 points if there will not be. The sub-measure is not applied if an investment does not include any construction activity.
Equity and Opportunity Apprentice Hiring Goals
Commitments to hire apprentices from traditionally disadvantaged and underutilized populations help to facilitate access to construction trade employment. Hiring goals should be defined with relevant community and agency input in order to ensure they respond to the unique context of the community and project.
This sub-measure considers whether an agreement will be in place to have a have a minimum percent of construction apprentice hours performed by traditionally disadvantaged and underutilized populations as defined by appropriate community-based and public organizations (e.g., targeting low income, women, persons of color, veterans, disabled individuals, or formerly incarcerated individuals). A project earns bonus points depending upon the level of commitment to equity and opportunity apprentice hiring. The points are awarded as a bonus so that projects are not penalized if the pool of available apprentices does not include the target population. Projects earn 100 bonus points for a binding agreement to have a minimum of 30% of apprentice construction employment hours performed by traditionally disadvantaged and underutilized populations as defined by appropriate community-based and public organizations; 75 points if the binding agreement is for a minimum of 20% of apprentice construction employment hours; 50 points if the agreement is non-binding; and 0 points if no agreements will be made. The sub-measure is not applied if the investment does not include any construction activity.
Evidence to support the claim should be made available. Consideration should be given to the representativeness of the stakeholders involved, the quality of the agreement, and the strength of implementation provisions.
Equity and Opportunity Non-Apprentice Hiring Goals
Hiring goals that are well defined and executed can facilitate access to construction trade employment by traditionally disadvantaged and underutilized populations. Hiring goals should be defined with relevant community and agency input in order to ensure that they respond to the unique context of the community and project. Outreach and recruitment efforts should be tailored to effectively reach the target population(s), and progress toward access and advancement goals monitored over time.
This sub-measure considers whether agreements are in place to have a minimum percent of non-apprentice construction employment hours performed by traditionally disadvantaged and underutilized populations as defined by appropriate community-based and public organizations (e.g., targeting low income, women, people of color, veterans, disabled individuals or formerly incarcerated individuals). A project earns 100, 75, 50, or 0 points depending upon the level of commitment: 100 points for a binding agreement to have a minimum of 30% of non-apprentice construction employment hours performed by traditionally disadvantaged and underutilized populations as defined by appropriate community-based and public organizations; 75 points if the binding agreement is for a minimum of 20% of non-apprentice construction employment hours; 50 points if the agreement is non-binding; and 0 points if no agreement will be made. The sub-measure is not applied if the investment does not include any construction activity.
Evidence to support the claim should be made available. Consideration should be given to the representativeness of the stakeholders involved, the quality of the agreement, and the strength of implementation provisions.
Equity and Opportunity in Business Development
Inclusive strategies that support participation of under-represented businesses in project construction contracts include culturally competent outreach, as well as targeted assistance with barriers to participation (e.g., forms, bonding, insurance).
This sub-measure considers whether an agreement will be in place to utilize, mentor, partner or otherwise support participation of under-represented businesses in project construction contracts. A project earns 100 points if a binding agreement will be in place, 50 points if a non-binding agreement will be in place, and 0 points if no agreement will be in place. The sub-measure is not applied if the investment does not include any construction activity.
Evidence to support the claim should be made available. Consideration should be given to the representativeness of the stakeholders involved, the quality of the agreement, and the strength of implementation provisions.
Investments with a strong Triple Bottom Line are financially viable at the project level and community level. The sound investment performance area is calculated by averaging the scores for four measures: pro forma completed, fiscal impact analysis conducted, consistency with regional economic development strategy, and support for local business. Information regarding the amount of leveraged investment and the ratio of public to private investment is displayed, though is not calculated as part of the project score. Additional information regarding this performance area can be found in the TBL Tool User's Guide posted on the TBL Tool website.
A pro forma provides financial projections for a project's expected revenues and expenses. Assumptions used in creating the projections should be disclosed and conservative estimates used. This important due diligence procedure is designed to assess profitability of the investment, a key component of triple bottom line performance.
This measure considers whether a pro forma has been completed that demonstrates the financial viability of the proposed project. A project earns 100 points if a pro forma has been completed by a qualified professional analyst and demonstrates financial viability of the proposed investment. No points are earned if a pro forma by a qualified professional analyst has not been conducted which demonstrates financial viability of the proposed investment.
Fiscal impact analysis considers budgetary impacts associated with an investment. For example, will the investment lead to increased costs of services and, if so, is there a corollary revenue stream to cover those costs? Effective fiscal impact analyses account for full costs and revenues and clearly identify assumptions regarding impacts, timeframes, and expenses.
This measure applies if the project will be a recipient of public investment. A project earns 100 points if a fiscal impact analysis has been completed and demonstrates neutral or net positive impact. No points are earned if a fiscal impact analysis has not been conducted or if a neutral or net positive impact has not been identified. If the project is not a recipient of public investment, this sub-measure does not apply.
Although globally connected, economies cohere at a regional scale where businesses access talent, amenities, and infrastructure that span political boundaries. Quality regional economic development strategies identify regional assets and prioritize investments that position the region for economic strength and resilience - the ability to generate and retain wealth in the community and successfully weather disruptions or changes to the economy. Aligning investment with high quality regional economic development strategies helps to ensure that scarce resources are used effectively and strategically.
This measure assigns 100 points if the investment aligns with and supports the region's economic development strategy. This may be a CEDS (Comprehensive Economic Development Strategy) or appropriate regional comprehensive plan with economic development element. No points are earned if the project does not align with the region's economic development strategy or if alignment has not been verified. If there is not regional economic development strategy this measure is scored as "NA."
Purchasing goods and services from local merchants can be an effective way to inject dollars into the local economy, and thereby help to keep businesses open, people employed, and streetscapes vibrant. It can, however, ignore regional comparative advantages, increase the cost of inputs, lower overall efficiency and reduce aggregate growth at the national or global scale. Determining when to patronize locally owned and operated businesses will depend upon the context. For example, if the local option for a given good or service has significantly higher costs or lower quality, then impacts to competitiveness or satisfaction suggest that the non-local option may be preferable. This measure aims to support local economic vitality by encouraging consideration of local impacts of purchase decisions.
This measure assigns 100 Bonus points if there is a program or policy in place to prioritize or encourage the purchase of goods and services from businesses that are owned and operated in the metropolitan area, micropolitan area, or county in which the project is located (i.e., supports retention of dollars in the local economy when appropriate). No points are earned if there is not a program or policy.
In many instances, public-private financing partnership is essential to project viability. This is particularly the case when a project serves important public objectives but has low financial returns (e.g., infrastructure, affordable housing), or when there is a higher than average degree of risk or cost (e.g., regeneration area). At the same time, fiscal responsibility and stewardship of public dollars suggests that due diligence be given to ensure that the level of private investment is appropriate to the context.
No points are provided for this measure and the information is not included in the overall project score. While this information may be useful to an investor, it is not empirically tied to the bottom line: there is no definition of a "good" or "bad" mix of public/private investment. Thus, this information is not included in the score. The information provided includes the amount of private investment, the amount of public investment, and the ratio of the two (i.e., private dollars/public dollars).
Potential investors often consider the presence of additional project funding in order to assess project support and/or minimize risk.
No points are provided for this measure and the information is not included in the overall project score. While this information may be useful to an investor, it is not empirically tied to the bottom line: there is no definition of "good" or "bad" amounts of leverage. Thus, this information is provided but is not included in the score. The information provided includes the funding request, the total project cost, and the ratio between the two (i.e., 1: (Total project cost - Funding request)/Total request).
Natural capital provides essential inputs to economic activity, contributes to quality of life and place-based economic development, and sustains life. The natural resource stewardship goal is comprised of three performance areas: industry eco-efficiency, green design and construction, and green operations. An investment's natural resource stewardship score is calculated by averaging its scores for these three performance areas, as described below.
Efficient use of scarce resources (factors of production) can contribute positively to the bottom line, while maintaining resource availability for the future. This performance area considers how efficiently natural resources are employed to create or retain jobs. This includes minimizing both the use of natural resources as inputs and the discharge of pollutants.
This performance area score is calculated by averaging the project's scores on nine eco-efficiency measures: three that consider the amount of resource use per job (i.e., water, land, fossil fuel use) and six that consider the amount of environmental emission/degradation created per job (i.e., air pollution, ozone depletion, greenhouse gases, ecotoxicity, eutrophication).
The environmental impact per job created and retained is determined based on the industry or industries in which the jobs are located (i.e., different sectors or NAICS have different impacts associated with them). The industry codes are identified in the NAICS codes pull-down menu. The NAICS level requested depends upon the amount of variation within an industry; more detailed information is requested only where differences among the types of companies within a given NAICS level are significant. For most industries, the user is asked to identify the three-digit level NAICS (retail and wholesale stop at the two-digit level, while a few others go one or two levels deeper).
The environmental impact associated with a sector is calculated taking a "cradle to gate" lifecycle approach which includes all of the impacts from upstream supply-chain processes that are inputs to the sector through to the point of sales to end-consumers (i.e., household consumers, business consumers, government consumers and exports). Calculations are based on the Comprehensive Environmental Database Archive (CEDA) 4 - an internationally recognized model that specifies environmental impact per dollar of final demand for each input-output (IO) sector. The CEDA 4 database uses the most detailed US input-output table compiled by the US Bureau of Economic Analysis (BEA) and various environmental statistics and models. The CEDA database covers the fifty United States and does not cover U.S. territories. The environmental impact categories are based on TRACI (Tool for the Reduction and Assessment of Chemical and Other Environmental Impacts) - a lifecycle impact assessment tool designed for US conditions and reflecting best available science and expert consensus. The nine eco-efficiency environmental impact categories are below and three environmental health impact categories are included in the community well-being goal.
Scoring is determined by whether a project's industry produces jobs with relatively more or less efficient use of resources. Because no standards exist for "environmental impact per job created" (e.g., no amount of water per job that is designated as good or bad), the scoring is based on best and worst performers overall (e.g., relatively better or worse than other industries on a normalized 0 to 100 scale). When a project includes multiple industries or NAICS, a weighted average is used. For example, if there are three NAICS and their relative portion of jobs are 20%, 30%, and 50% and the scoring for the three NAICS were 50, 60, and 80 then the score would be computed as (.20*50) + (.30*60) + (.50*80) = 68. If the information is not available for a sector the measure is assigned an "NA" which does not affect the total project score.
This measure helps identify whether the proposed project belongs to an industry that has greater or lesser environmental impact per job relative to other industries. This information can be useful for identifying potential issues and engaging with developers to design the project for best possible outcomes. A project that is part of a low performing industry relative to other industries but is expected to have strong environmental performance relative to other projects in the same industry will be able to capture points for their leadership in the section of the TBL Tool pertaining to operations and maintenance (e.g., a project that is in high water consumption industry but has significant water conservation measures in place can get credit for that).
The environmental impacts are modeled based on US average condition and, thus, provide a coarse estimate of industry impacts. Projects may be misrepresented by the CEDA results if their activities deviate substantially from industry averages, regional conditions are much different from the national average, or industry environmental impact or employment have changed dramatically relative to other industries since the CEDA data was compiled. Consequently, the data produced for these measures should be viewed as rough estimates that provide guidance on the likely impact of a project relative to projects in other sectors. Where appropriate, more detailed project specific environmental assessments should be conducted. More detailed information regarding CEDA data and calculations can be found in the TBL Tool User's Guide posted on the TBL Tool website.
The following table displays the nine measures for the eco-efficiency performance area along with their unit of measure and potential environmental issues.
Eco-Efficiency Impact Category | Unit | Description |
---|---|---|
Energy | Thousand BTU | Potential to lead to reduced availability of low cost energy/fossil fuel supplies. |
Water | Liter | Proxy indicator expressing potential for water shortages leading to agricultural, human, plant, and animal effects. |
Solid Waste | kg | Total amount of solid waste. |
Ozone Depletion | kg CFC-11-Eq | Potential to destroy ozone based on chemical's reactivity and lifetime. Possible consequences include skin cancer, cataracts, material damage, immune system suppression, crop damage, other plant and animal effects. |
Acidification | moles of H+-Eq | Potential to cause wet or dry acid deposition. Possible consequences include plant, animal, and ecosystem effects, damage to buildings. |
Photochemical Smog | kg NOx-Eq | Potential to cause photochemical smog. Possible consequences include human mortality, asthma effects, plant effects. |
Eutrophication | kg N equivalent | Potential to cause eutrophication. Possible consequences include plant, animal and ecosystem effects, odors and recreational effects, human health impacts. |
Greenhouse Gases | kg CO2-Eq | Potential global warming based on chemical's radiative forcing and lifetime. Possible consequences include malaria, coastal area damage, agricultural effects, forest damage, plant and animal effects. |
Ecotoxicity | kg 2,4-D-Eq | Potential of a chemical released into an evaluative environment to cause ecological harm. Possible consequences include plant, animal, and ecosystem effects. |
Buildings that are designed and maintained for eco-efficiency and environmental quality can provide cost savings (e.g., lower energy and water consumption), add value (e.g., higher worker productivity and satisfaction, higher rents, or faster sales), and contribute to conservation of ecosystems. As described below, the green design and construction performance area is calculated by averaging the project's scores for five measures: green building certification, adaptive reuse, sustainable site design, remediation or restoration of lands, avoidance of sensitive natural resources. Additional information regarding this performance area can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Green building practices can positively impact the triple bottom line through energy cost savings, increased building value, higher occupant satisfaction and productivity, and lower impacts to human and natural resource health.
This measure considers whether green building practices will be applied in new construction as well as remodels or upgrades. A project earns 100, 75, 50, or 0 points depending upon the level of commitment to green building and construction. Maximum points are provided if the project will receive third party certification by a recognized international, national, or regional program for green construction (e.g., LEED, Living Building Challenge, Green Globes, EarthCraft, Earth Advantage, GreenLITES, or an official government program). Third party certification is valuable because it provides a common standard for accepting and verifying claims buildings and infrastructure can be green without certification. Seventy-five points are earned if the applicant can demonstrate that plans are in place to build to third party standards although without certification. Fifty points are provided if the project will employ some green building features such as water or energy conservation, but will not design and build to a recognized third party standard. No points are earned if there are not documented commitments to green building.
Reuse of existing facilities can provide a number of environmental benefits depending upon the type of project and materials used. Environmental benefits associated with rebuilding rather than razing facilities include savings in energy, material, land conversion, and carbon emissions. This measure does not affect the project score when facility reuse is not an applicable or appropriate option. Where it does apply, this measure assigns a bonus score of 100 points to projects that make use of an existing structure.
Site design exerts a powerful influence over economic, environmental, and social impacts of a project. These include, for example, groundwater recharge, flood control, habitat conservation, increased recreation opportunities, and reduced maintenance costs. Sustainable site design works with nature to ensure that beauty and accessibility are maximized, while long term costs associated with site development are minimized.
This measure considers whether the project aligns with recognized sustainable site design standards, certifications, or best practices. A project earns 100, 75, 50, or 0 points depending upon the level of commitment to sustainable site design. Maximum points are earned if the project will receive third party certification by a recognized international, national, or regional program (e.g., Sustainable Sites, LEED-ND, One Planet Communities). Third party certification is valuable because it provides a common standard for accepting and verifying claims. Seventy-five points are earned if the applicant can demonstrate that plans are in place to build to best practices or third party standards although without certification. Fifty points are provided if the project will incorporate low impact or sustainable site design features but will not be designed and built to the standards of a recognized international, national, or regional program. If the project will receive certification by a program that addresses both site design and construction, simply answer the questions appropriate to the respective measure (i.e., a project is not expected to secure separate or redundant certifications).
Remediation of abandoned or contaminated sites can increase property values and tax revenues while reducing health costs, and restoration of natural resources (e.g., wetlands, forestlands, rivers, or farmlands) can deliver valuable ecosystem services such as flood control, wildlife habitat, and scenic amenities.
Bonus points are earned if the project contributes to land or habitat remediation or restoration. The site may or may not be classified as a brownfield, and restoration and remediation activities are defined broadly including farmland for food production, reforestation and afforestation, and de-paving. Projects that do not include remediation or restoration are not penalized, as this is a bonus measure.
Natural resources provide a variety of functions that have significant economic value. Referred to as ecosystem services, these functions include provisioning (resources are provided), regulation (resources provide safety or balance such as flood control or oxygen levels), and cultural (resources provide aesthetic, historic, and other cultural benefits). Protection of sensitive natural resources is important for ensuring that ecosystem services remain functional, that mitigation and repair costs associated with disrupted environmental systems are minimized, and that resource-based economies remain viable.
This measure considers eight sensitive natural resource areas: flood zones, critical habitat, steep slopes, wetlands, water bodies, protected areas, prime farmland, and forestland. Based on the project location provided, the TBL Tool calculates whether the proposed project is in any of the eight sensitive natural resources or the necessary buffer as appropriate. Each sensitive resource is scored separately. For five of the sensitive resources (flood zone, critical habitat, steep slope, protected area, or wetland), a project located in the resource area or its buffer zone earns no points because avoidance is the preferred option. For three of the sensitive natural resources, (prime farmland, forestland, and water body), a project located in or near the sensitive resource receives a mid-score (50) in recognition that the mitigation may be accommodated more easily than with other sensitive resources. Maximum points (100) are earned if a project is not in or near a sensitive natural resource area. The score for the sensitive natural resource measure is calculated by taking the lowest of the eight sensitive resource sub-scores (i.e., 0, 50, or 100).
Scoring favors investments that are not located in the sensitive natural resource areas or their buffers. Projects that are located in a sensitive area and provide an enhancement function can capture points for those efforts in the restoration and remediation measure (e.g., a project that includes stream restoration).
This measure addresses the presence of sensitive natural resources on the project site, not the estimated magnitude of impact. Thus, careful review should be given if sensitive resources are identified in order to determine options for avoidance, mitigation, and enhancement. Further, the Tool draws on national data sets that meet federal mapping standards but may not align with the identified project boundaries. Due diligence and field surveys are recommend to confirm the project location relative to sensitive natural resources. Known data limitations include the following:
Facility operations and maintenance have significant impacts over the lifetime of a building. Green operations and management strategies that are well designed and implemented may result in lower operating costs, lower risk, and healthier and more comfortable working environments. As described below, the green operations performance area is calculated by averaging the score for eight measures: renewable energy, energy management, trip reduction strategies, tenant environmental incentives, lower than industry average water use, lower than industry emissions use, industry best practices, green products and services. Additional information regarding this performance area can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Energy supplies that come from renewable sources (e.g., biomass, wind, solar, hydropower and geothermal) can contribute to the triple bottom line by creating jobs, keeping dollars local, and providing lower environmental impact energy choices. This measure considers whether a portion of the project's energy will be derived from renewable energy sources and is calculated by averaging two sub-measure scores, as follows:
A project earns 100 points if a portion of the project's energy supply will be derived from renewable resources including solar, wind, geothermal, biogas, biomass, and low impact hydroelectric sources either through utility purchase, renewable energy certificates, or on-site generation sources AND the project will participate in the US Green Power Partnership Program (http://www.epa.gov/greenpower/). The portion of green power is defined as 3-20%, depending upon the size of organization. Eligible green power sources include solar, wind, geothermal, biogas, eligible biomass, and eligible low impact hydroelectric sources. Commitments can met with any combination of green power products (i.e., green power, renewable energy certificates, or on-site generation). A project earns 75 points if a portion of the project's energy supply will come from renewable energy resources but the project will not participate in the US Green Power Partnership. No points are earned if no commitments to renewable energy will be made.
For projects with tenants, 100 points are earned if the owner will require tenants to participate in the US Green Power Partnership Program, 75 points if the owner will incentivize tenants to participate in the US Green Power Partnership Program, and 0 points if there will be no incentives or requirements to purchase energy from renewable sources. For projects without tenants, the sub-measure is not applicable and does not impact the project score.
Efficient use of energy resources can contribute to the triple bottom line by producing cost savings, conserving natural resources, and improving occupant comfort.
This measure considers whether an on-going strategy is in place to monitor and improve energy use. A project earns 100 points for participating in the Energy Star Energy Management Program. This is a no cost program that assists organizations to improve the energy performance of their facilities. A project does not earn points for this measure without participation in the Energy Star Energy Management Program. Information about the program can be found at http://www.energystar.gov/index.cfm?c=business.bus_commit.
Reductions in automobile trips associated with employee and/or customer commuting can improve air quality, while reducing fuel use and traffic congestions - all of which have significant human and financial costs. Further, active transportation options have the added benefit of improving health outcomes and reducing travel expenses.
This measure considers whether appropriate vehicle trip reduction strategies are in place. A project earns 100 points if strategies will be in place to reduce automobile trips associated with employee and/or customer commuting (e.g., telecommuting, transit passes, shuttles, bicycle facilities and locker rooms). Appropriate strategies will depend upon the location and type of industry and may include options such as telecommuting, transit passes, shuttles, bicycle facilities and locker rooms. A project does not earn points for this measure if there will not be a trip reduction strategy in place.
Building owners can encourage environmental stewardship in tenant operations and management in a number of ways. For example, lease incentives may be offered for things like reduced waste or green business certification, or occupancy agreements may establish protocols such as non-toxic cleaning and landscaping products. Incentives can be a powerful way to encourage preferred practices and may serve as an asset if the stewardship commitments differentiate the product in the marketplace.
For projects with tenants, 100 bonus points are earned if the owner will require, incentivize, or encourage tenants/occupants to meet best practices in green operations and management. For projects without tenants, this measure does not apply and the project score is not affected.
Industrial processes that are designed to minimize water use may lower operating costs while conserving an essential non-renewable resource. Conservation can be particularly important in areas that are facing water shortages and/or in industries that have high water usage. This measure rewards excellence in water conserving design. The focus of this measure is on industrial processes (e.g., water recycling in chip manufacturing) rather than building features (e.g., low-flow bathroom appliances), which are addressed in the green building measure.
Projects may earn 100 bonus points if strategies will be implemented that lead to lower water use than is the norm for the industry. While any project can benefit from this measure, it may be particularly helpful to projects whose industry or industries were identified as higher than average water users in the industry eco-efficiency measure.
Industrial processes that are designed to minimize toxic emissions to air, land, or water may benefit human health and maintain essential ecosystem services. Economic benefit may also accrue through reduced costs and/or the development of valuable new products and processes.
Projects may earn 100 bonus points if strategies are implemented that lead to lower than average emissions. While any project can benefit from this measure, it may be particularly helpful to projects whose industry or industries were identified as generating higher than average emissions in the industry eco-efficiency measure.
A number of industries have developed certifications or best practices for environmental performance. When based on leading scientific evidence and stakeholder input, such standards can be an effective tool for improving industry performance.
Projects earn 100 bonus points if they demonstrate that the project will be compliant with best practices for their industry (e.g., forestry, information technology, tourism, sustainable agriculture and food production, infrastructure). Additional information regarding this measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Goods and services that are designed to improve environmental quality, resource efficiency, and energy independence align job creation with natural resource stewardship in a unique way: not only are environmentally sensitive practices employed, the products themselves facilitate the transition to a more sustainable future.
Projects earn bonus points if some or all of the jobs created and/or retained pertain to one or more of the five green product and service categories defined by the United States Bureau of Labor Statistics (http://www.bls.gov/green/#definition). The project earns 100 bonus points if the percent of jobs pertaining to green goods or services is 76 to 100 and 75 bonus points if the percent of jobs is 1 to 75. The scoring system is designed to accommodate diversity of project scale (e.g., 50% of 10 jobs versus 10% of 500 jobs) and to ensure that the bonus points do not move a project out of the highest scoring quartile (i.e., 75 bonus points is the minimum).
As this is a bonus point measure, projects that are not green job generators should not be and are not penalized.
Green products and services include:
Community well-being is both a goal and a facilitator of economic development. The community well-being goal is comprised of three performance areas: placemaking and accessibility, environmental health, and governance. An investment's community well-being score is calculated by averaging its scores for these three performance areas, as described below.
Placemaking creates inviting and distinctive spaces where people want to live, work and play. Place-making can contribute to the financial bottom line through increased property value, tourism receipts, and firm recruitment and retention. Accessibility helps ensure that residents and visitors can find the goods, services, and jobs they are looking for in ways that conserve energy and commuting costs, strengthen community fabric, and minimize pollution. The score for this performance area is calculated by averaging the proposed investment's score for eight measures, as described below.
Preserving and enhancing cultural and historic resources can contribute to economic vitality through increased property value, tourism receipts, preservation of tradition-based economies, and firm recruitment and retention. In addition, community well-being may be improved if these resources contribute to civic pride, a sense of identity and connection, and well-utilized public spaces.
The score for this measure is calculated by taking the average of three sub-measure scores pertaining to historically or culturally significant practices, programming, and structures, facilities or districts, which are detailed below. Additional information regarding this measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Culturally or Historically Significant Structures, Facilities, or Districts
Historically or culturally significant structures, facilities, or districts can be important for place-based economic development, as well as for fostering community identity and pride.
Investments that preserve or enhance historically or culturally significant structures, facilities, or districts AND meet criteria for inclusion on national, state, or local registry and/or have a letter supporting cultural or historical significance provided by an appropriate historical or cultural commission or agency earn a score of 100. A score of 80 is earned if the investment will preserve or enhance historically or culturally significant structures, facilities, or districts but will not meet criteria for inclusion on national, state, or local registry and/or have a letter supporting cultural or historical significance provided by an appropriate historical or cultural commission or agency. Investments that will have a negative impact earn a zero score. If the proposed investment has no impact on culturally or historically significant structures, facilities, or districts then this sub-measure is not applicable and the project score is not affected.
Culturally or Historically Significant Practices
Historically or culturally significant practices include traditions, oldways, and unique culture of place. Conserving such practices can be important for place-based economic development, as well as for fostering community identity and pride.
This sub-measure is not applicable if the proposed investment has no impact on culturally or historically significant practices. Investments that have a positive impact earn the maximum score (100) and investments that have a negative impact earn the minimum score (0).
Publicly Accessible Programming
Making historically and culturally significant resources accessible to a wide range of community members can contribute to a collective appreciation for heritage and context, and help individuals and communities to understand and interpret experiences.
If the proposed investment has no programming element such as performances or activities, this sub-measure is not applicable and the project score is not affected. Investments that include historically or culturally relevant programming earn 100 points if there is a component designed explicitly to serve the community (e.g., connection to schools, discount days). Investments that include programming but without any components designed to serve the community earn 50 points.
Well-designed and cared for public spaces are important to economic development because they can attract residents, workers, and visitors. They can add value in numerous ways, such as providing scenic beauty, recreational and gathering opportunities, and environmental benefit. Publicly accessible spaces take a variety of shapes and sizes, and may even be privately owned - from pocket parks and rooftop gardens, to plazas, scenic viewpoints, biking and walking trails.
If public space is not impacted (i.e., neither created, enhanced, or diminished) this measure does not apply and the project score is not affected. Investments that create or enhance public space AND have a plan in place to promote productive public use and care of the space earn 100 points (e.g., interpretive signs, marketing campaign, stewardship partnership with neighbors or schools, integration into the surrounding area, uses and activities are designed to create vibrancy and use across day and seasons). Investments that create or enhance public space without a plan to promote productive public use and care of the space earn 100 points. Investments that diminish quality, quantity, or access to public space earn 0 points.
A walkable location is one where people can access goods and services without driving. Walkability provides a number of potential benefits including lower commute expenses, improved air quality, active living, and vibrant streetscapes.
The score for this measure is the project location's Walk Score - a number between 0 and 100 that is based on proximity to daily goods and services such as grocery stores, restaurants, shopping, coffee shops, banks, parks, schools, bookstores, and entertainment. Walk Score addresses proximity to amenities, but does not currently address quality of the walk (e.g., beauty, topography, safety, weather). If a project is located in an area that does not have a Walk Score, this measure is not applied and does not affect the project score. Investments that are designed to improve walkability can earn bonus points in another measure. Additional information regarding Walk Score and this measure can be found at http://www.walkscore.com/ and the TBL Tool User's Guide posted on the TBL Tool website.
Transit accessible locations provide a number of potential benefits including lower commute expenses, improved air quality, and increased employment access - particularly for low-income populations.
The score for this measure is the project location's Transit Score - a number between 0 and 100 that is based upon how well a location is served by public transit, with service defined by frequency, type, and distance to nearest stop. If a project is located in an area that does not have a Transit Score, this measure is not applied and does not affect the project score. Investments that are designed to improve transit accessibility can earn bonus points in another measure. Additional information regarding the Transit Score and this measure can be found at http://www.walkscore.com/transit-score.php and in the TBL Tool User's Guide posted on the TBL Tool website.
Locations that are easy to access by walking, bicycling, or transit may accrue significant financial, health and environmental benefits.
This measure considers whether the investment is designed to improve walkability, bikability, and/or transit accessibility (e.g., a mixed use development that contributes to community completeness, provision of retail services within 1/4 mile of housing, or addition of transit or bike lane to area). Projects that are designed to increase walking, biking, or transit options earn 100 bonus points. If the project does not, this bonus measure does not apply and the project score is not affected.
While jobs and wealth creation are important to all communities, the need is particularly great in areas that have experienced chronic disinvestment or economic disruption.
This measure considers whether the investment creates or retains jobs in areas with the greatest need. Investments that are located in a census tract designated as Highly Distressed or Severely Distressed receive 100 bonus points. The calculation is made based on the project address entered. Projects that are not located in a high distress area are not penalized, as this is a bonus measure. Additional information regarding the census tract distress designation can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Location in a high need area does not necessarily translate to employment for those in need. The Tool's career access and advancement measures consider whether the investment will serve traditionally disadvantaged and underutilized residents.
Affordable housing provides workers of various income levels and family members in various life stages options to remain in the community. When affordable housing units are lost, individuals and families lose the stabilizing foundation of home that is important to thrive. Further, displacement may lead to longer commutes and associated negative impacts such as pollution, less time for family and community, reduced competitive disadvantage.
This measure only applies to projects where restricted affordable housing units exist on the project site. Restricted affordable housing units are those whose affordability is legally designated and limited; for example, subsidized housing, tax credit housing, low-income housing, public housing, section 8 housing, or deed restricted housing.
This measure considers whether the project will result in the loss of restricted affordable housing units. A project earns 100 points if there will be a binding agreement to provide one-for-one replacement of all currently affordable housing units, with first right of refusal granted to existing residents and in-perpetuity affordability covenants. The score is 75 if affordability restrictions are long term (e.g., 30+ years) rather than in perpetuity. The score is 25 if there will be one-for-one replacement of affordable housing units but with no affordability restrictions in place. If no agreements are in place to provide one-for-one replacement housing the score is 0. Additional information regarding this measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Housing costs are generally considered to be affordable when they do not exceed 30% of household income, though associated costs such as utility bills and transportation can significantly impact housing cost burden. An affordable housing supply is important for accommodating workers and families of various income levels and life stages. Housing affordability can impact recruitment and retention, as well as discretionary income to spend on local goods and services.
This measure considers whether new housing will include units that are affordable to households at or below 120% of Area Median Income (AMI) spending a maximum of 30% on housing costs. The measure only applies to projects that include housing in excess of one-for-one replacement of restricted affordable housing units. A project that includes new housing units earns 100 points if there is a binding agreement ensuring that 10% or more of the housing units are affordable to households at or below 120% of Area Median Income (AMI) spending a maximum of 30% on housing costs, and that the affordability is assured in perpetuity through legal mechanisms such as recorded covenant or ground lease. The score is 75 if the affordability restrictions are long term (e.g., 30+ years) rather than in perpetuity. If less than 10% of the units are affordable to households with income at or below 120% of AMI then the measure score is 0. Additional information regarding this measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Job creation and retention strategies vary in their human health impacts. Industries that produce emissions known to negatively impact health impose financial costs in the form of lost productivity and medical expenses, along with personal and social costs that cannot be monetized.
This performance area considers whether the jobs created and retained by an investment are in industries that produce relatively high levels of emissions known to have negative health effects. The score for this performance area is calculated by averaging the project's scores on three measures: exposure to cancer toxics, exposure to non-cancer toxics, and exposure to criteria pollutants.
The environmental impact per job created and retained is determined based on the industry or industries in which the jobs are located (i.e., different sectors or NAICS have different impacts associated with them). The industry codes are identified in the NAICS codes pull-down menu. The NAICS level requested depends upon the amount of variation within an industry; more detailed information is requested only where differences among the types of companies within a given NAICS level are significant. For most industries, the user is asked to identify the three-digit level NAICS (retail and wholesale stop at the two-digit level, while a few others go one or two levels deeper).
The environmental impact associated with a sector is calculated taking a "cradle to gate" lifecycle approach which includes all of the impacts from upstream supply-chain processes that are inputs to the sector through to the point of sales to end-consumers (i.e., household consumers, business consumers, government consumers and exports). Calculations are based on the Comprehensive Environmental Database Archive (CEDA) 4 - an internationally recognized model that specifies environmental impact per dollar of final demand for each input-output (IO) sector. The CEDA 4 database uses the most detailed US input-output table compiled by the US Bureau of Economic Analysis (BEA) and various environmental statistics and models. The CEDA database covers the fifty United States and does not cover U.S. territories. The environmental impact categories are based on TRACI (Tool for the Reduction and Assessment of Chemical and Other Environmental Impacts) - a lifecycle impact assessment tool designed for US conditions and reflecting best available science and expert consensus. The three environmental impact categories considered for environmental health are below.
Scoring is determined by whether a project's industry produces jobs with relatively more or less efficient use of resources. Because no standards exist for "environmental impact per job created" (e.g., no amount of water per job that is designated as good or bad), the scoring is based on best and worst performers overall (e.g., relatively better or worse than other industries on a normalized 0 to 100 scale). When a project includes multiple industries or NAICS, a weighted average is used. For example, if there are three NAICS and their relative portion of jobs are 20%, 30%, and 50% and the scoring for the three NAICS were 50, 60, and 80 then the score would be computed as (.20*50) + (.30*60) + (.50*80) = 68. If the information is not available for a sector the measure is assigned an "NA" which does not affect the total project score.
This measure helps identify whether the proposed project belongs to an industry that has greater or lesser environmental impact per job relative to other industries. This information can be useful for identifying potential issues and engaging with developers to design the project for best possible outcomes. A project that is part of a low performing industry relative to other industries but is expected to have strong environmental performance relative to other projects in the same industry will be able to capture points for their leadership in the section of the TBL Tool pertaining to operations and maintenance (e.g., a project that is in high water consumption industry but has significant water conservation measures in place can get credit for that).
The environmental impacts are modeled based on US average condition and, thus, provide a coarse estimate of industry impacts. Projects may be misrepresented by the CEDA results if their activities deviate substantially from industry averages, regional conditions are much different from the national average, or industry environmental impact or employment have changed dramatically relative to other industries since the CEDA data was compiled. Consequently, the data produced for these measures should be viewed as rough estimates that provide guidance on the likely impact of a project relative to projects in other sectors. Where appropriate, more detailed project specific environmental assessments should be conducted. More detailed information regarding CEDA data and calculations can be found in the TBL Tool User's Guide posted on the TBL Tool website.
This performance area does not consider whether the proposed project's location (siting) may expose residents and workers to toxins. The US Environmental Protection Agency maintains a database that identifies exposure to a variety of pollutants (http://www.epa.gov/enviro/) including, for example, superfund sites and facilities that use or release toxic chemicals. Reviewers may want to consult this or other databases to determine whether further attention or caution is suggested - particularly if the project residents, visitors, or employees constitute a sensitive population (e.g., children, elderly, medically frail).
The following table displays the three measures for the environmental health performance area along with their unit of measure and potential environmental issues. More detailed information regarding the data, calculations, and alternatives considered can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Impact Category | Unit | Description |
---|---|---|
Human Health - Cancer | kg benzene-Eq | Potential of a chemical released into an evaluative environment to cause human cancer effects. Possible consequences: Variety of specific human cancer effects. |
Human Health - Noncancer | kg toluene-Eq | Potential of a chemical released into an evaluative environment to cause human noncancer effects. Possible consequences: Variety of specific human toxicological noncancer effects. |
Human Health - Criteria Pollutants | kg PM2.5-Eq | Exposure to elevated particulate matter less than 2.5 µm. Possible consequences: Toxicological human health effects. |
Governance or management systems that are fiscally responsible, accountable, and inclusive of relevant stakeholders contribute to triple bottom line performance. This helps to ensure that investments do not diminish service levels and quality of life, incentive agreements are fulfilled, and investments are supported by and well-suited to the community. The score for this performance area is calculated by taking the average of six measures. As described below, these include stakeholder engagement, key infrastructure capacity, accountability mechanisms, anti-poaching, relocation planning and collaboration, and prevention and mitigation of displacement. Fiscal impact is considered in the economic vitality section of the Tool.
Appropriate stakeholder engagement can ensure that important information is taken into account in the project design and that the project is well-suited to the community. Appropriate stakeholder engagement may also broaden project support, which can be essential for project viability and important for maintaining community cohesion.
This measure considers whether there is a commitment to 1) identify and work with diverse stakeholders that may affect or be affected by the project in order to 2) develop and implement an appropriate engagement strategy that includes tasks, timelines, and responsibilities. An appropriate engagement strategy will depend upon the context, and diverse stakeholders may include people of different age, ethnicity, or income as well as different agencies, jurisdictions, disciplines, and businesses. A score of 100 is earned if there will be a program or policy to identify and work with diverse stakeholders that may affect or be affected by the project in order to develop and implement an appropriate engagement strategy that includes tasks, timelines, and responsibilities. A score of 0 is earned if a program or policy will not be in place.
Sufficient capacity for key infrastructure such as water, sewer, transportation, and utilities must be in place to maintain competitiveness and quality of life. This measure considers whether the capacity of key infrastructure to serve the project has been confirmed and the levels are adequate. Sufficient capacity for key infrastructure such as water, sewer, transportation, and utilities must be in place to maintain competitiveness and quality of life. This measure considers whether the capacity of key infrastructure to serve the project has been confirmed and the levels are adequate.
Sufficient capacity is defined as service levels for the intended use (e.g., ten ton road to service the project), rather than overall indirect or induced use. Indirect or induced demand should be addressed in the fiscal impact and stakeholder engagement measures in order to ensure that fiscal resources are not strained, levels of service do not decline, and quality of life is not diminished.
The measure score is 100 if existing infrastructure capacity has been evaluated and is or will be sufficient to accommodate the proposed project without exceeding adopted or appropriate level of service standards. The measure score is 0 if capacity has not been confirmed or if capacity has been evaluated and is not sufficient to serve the project without exceeding adopted or appropriate level of service standards.
The following template may be useful for securing agency input regarding key infrastructure capacity:
Accountability mechanisms are useful for ensuring that investments align with priorities, commitments are fulfilled, and investment dollars are accounted for.
The score for this measure is calculated by averaging the project's scores on four sub-measures, as defined below: incentives linked to performance, transparency of public funding, responsible contracting, triple bottom line business certification.
Incentives Linked to Performance
Incentives are often provided in exchange for commitments to specific deliverables such as job creation. Linking incentives to performance is an important component of fiscal responsibility and accountability.
This measure only applies when incentives or payments apply to the proposed investment. The sub-measure score is 100 if legally binding provisions are in place to verify performance and withhold, recapture, or recalibrate incentives if performance goals are not met. The sub-measure score is 0 if no legally binding accountability provisions for incentives or payments are in place.
Transparency of Public Funding
The use of public funds should be transparent with respect to key details such as funding amounts, recipients, agreements, conditions, risks, and performance. To be useful, this information needs to be easily accessible to the public (e.g., available on-line).
This measure only applies if the project will be receiving public funds. The score earned for this sub-measure is 100 if subsidy and performance information is easily accessible to the public and 0 if subsidy and performance information is not easily accessible to the public.
Responsible Contracting
Responsible contractor programs establish basic requirements that a contractor must meet in order to be eligible to bid on a project. Responsible Contractor Standards (RCSs) may focus narrowly on past performance (e.g., prior violations of law, project completion) or inclusively to address criteria such as project wages and benefits for workers. Well-designed comprehensive responsible contractor standards are useful for ensuring that investment dollars are stewarded and maximum value achieved.
The score for this sub-measure is 100 if the project will have responsible contractor standards specifying the basic requirements that a contractor must meet in order to be eligible to bid on work associated with the investment. At a minimum the standards should address quality, history, and performance. Wages and benefits may be addressed in the quality construction jobs measure. The score for this sub-measure is 0 if no responsible contractor standards are defined. If the project does not include construction, the measure does not apply.
Triple Bottom Line Business
Businesses that have received third party certification of their sustainability performance demonstrate strong alignment with TBL goals and deserve recognition for their commitments.
B Corporations are businesses that have obtained third party certification regarding social and environmental performance by B Lab, a non-profit organization (http://www.bcorporation.net/). While a number of reporting systems exist to help businesses and their stakeholders assess sustainability issues, to date there is not an alternative third party certifier of triple bottom line businesses. This measure can be adjusted to accommodate additional certifications in the future if appropriate.
If the applicant is a certified B Corporation and/or provides incentives that favor B certified companies as tenants or project beneficiaries 100 bonus points are earned. The sub-measure is a bonus and is not included in the project score if there is no certification.
Economic development that is based on recruitment and relocation of existing businesses may generate jobs in one community while leaving another worse off. In some cases, relocation may be occurring because a facility has exceeded its capacity, needs an upgrade, or requires a workforce with different skills. In these circumstances, efforts should be made to meet these needs without dislocating jobs in the current location if feasible and/or mitigate negative impacts on the existing community.
This measure considers whether the jobs "created" by this project are the result of avoidable job loss in another jurisdiction. If the project does not involve relocation of an existing business from another location, this measure does not apply and the project score is unaffected. A neutral score (NA) is earned if the project involves the relocation of an existing business but the jurisdiction gaining the jobs cooperates with the jurisdiction losing the jobs to try and keep the company in the existing jurisdiction and/or to mitigate impacts on the existing jurisdiction. Documentation should address why the jobs need to be relocated, expected impacts on the communities losing the jobs, and efforts to avoid or mitigate impacts on the communities losing jobs. A score of 0 is earned if the project provides incentives or otherwise encourages the relocation of existing jobs from another jurisdiction.
Businesses or residents that are temporarily or permanently relocated due to an investment may experience higher rents, longer or more expensive commutes, and a loss of important community ties. Impacts of relocation to existing residents and businesses must be carefully considered and appropriate plans made to ensure that relocation does not negatively affect this population. Further, because the burdens of relocation often accrue disproportionately to disadvantaged and underrepresented populations, focused attention needs to be given to these residents and businesses.
This measure applies if temporary or permanent relocation will occur as part of this project. The measure score is calculated by averaging the two sub-measures scores described below. The maximum measure score of 100 is earned when a relocation plan appropriate to the needs and interests of existing residents and businesses is developed with meaningful engagement of the affected parties. A measure score of 50 is earned when a reasonable relocation plan is developed but without meaningful engagement of affected parties. Zero points are earned if an appropriate relocation plan is not created. This measure does not apply if there is no temporary or permanent relocation of residents or businesses associated with the investment. Additional information regarding this measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Resident and/or Business Relocation
This question is for informational purposes and identifies whether any residents and/or businesses will be temporarily or permanently relocated as part of the project. This sub-measure has no scoring.
Relocation Plan Appropriate to the Needs of Existing Residents and Businesses
This sub-measure considers whether a relocation plan appropriate to the needs and interests of residents and businesses before, during, and after relocation will be developed. Details of the relocation plan may include counseling and support services, financial assistance to navigate the costs associated with relocation, opportunities to return, and clear specification of tasks, timelines, responsibilities, performance monitoring, and recourse/consequence. If a relocation plan appropriate to the needs and interests of the community will be in place, the score is 100. If a relocation plan appropriate to the needs and interests of the community will not be in place the score is 0. This measure does not apply if residents and/or businesses will not be temporarily or permanently relocated as part of the project.
Collaboration to Create Relocation Plan
This sub-measure considers how the affected businesses and/or residents are involved in the development of the relocation plan. If there is or will be a plan to meaningfully engage diverse residents and businesses in the area in creating the relocation plan, with a particular focus on underrepresented and disadvantaged populations, the sub-measure score is 100. If a meaningful plan is not in place, the score is 0. This sub-measure is not applied if residents and/or businesses will not be temporarily or permanently relocated as part of the project.
Voluntary displacement occurs when individuals or business choose to move from the project area because they perceive that the move will leave them better off. Involuntary or indirect displacement occurs when residents or business move because they can no longer afford to stay in the area. This type of dislocation is similar to the displacement that occurs when residents and businesses are temporarily or permanently relocated as part of the site development and construction, though there are differences in cause and remedy.
Residents and businesses that are displaced may experience higher rents, longer or more expensive commutes, and a loss of important community ties. The potential for involuntary or indirect displacement of existing residents and businesses in the project area must be carefully considered and appropriate prevention and mitigation plans implemented.
This measure applies if the cost of living or doing business in the neighborhood surrounding the project is likely to increase as a result of this project. The measure score is calculated by taking the average of the two sub-measure scores described below. The maximum score of 100 is earned when affected parties collaborate to create a strategy to prevent and mitigate potential displacement due to factors such as rising rents and taxes. A score of 50 is earned when an anti-displacement strategy is developed but without meaningful engagement of affected parties. Zero points are earned if an anti-displacement strategy is not created. This measure does not apply if residents and/or businesses are not likely to be priced out of the neighborhood or involuntary displace due to the project. Additional information regarding this measure can be found in the TBL Tool User's Guide posted on the TBL Tool website.
Cost of Living or Doing Business
This question is for informational purposes and identifies whether the cost of living or doing business in the neighborhood is likely to increase as a result of this project leading to residents and/or businesses being involuntarily or indirectly displaced. This sub-measure has no scoring.
Anti-displacement Strategy
This sub-measure considers whether an anti-displacement strategy appropriate to the needs and interests of residents and businesses will be developed. The strategy could include things like assistance with purchasing units, affordability agreements, tax relief, and counseling and skill-building to identify and successfully pursue suitable options. If an appropriate anti-displacement strategy will be in place, the sub-measure score is 100. If an anti-displacement strategy appropriate to the needs and interests of the community will not be in place, the score is zero. This sub-measure is not applied if the project is not expected to contribute to involuntary or indirect displacement.
Anti-displacement Strategy Collaboration
This sub-measure considers whether there is a plan to meaningfully engage diverse residents and businesses in the area in creating the anti-displacement strategy, with a particular focus on underrepresented and disadvantaged populations. If a plan will be in place, the sub-measure score is 100. If an anti-displacement strategy appropriate to the needs and interests of the community will not be in place, then the score is zero. This sub-measure is not applied if the project is not expected to contribute to involuntary or indirect displacement.