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HomeMy WebLinkAbout05/08/2025 - ENERGY BOARD - AGENDA - Regular Meeting ENERGY BOARD REGULAR MEETING May 8, 2025 – 5:30 pm 222 Laporte Ave – Colorado Room Zoom – See Link Below 1. [5:30] CALL MEETING TO ORDER 2. [5:30] PUBLIC COMMENT 3. [5:35] APPROVAL OF APRIL 10, 2024 MINUTES 4. [5:45] BOARD MEMBER TRAINING (30 Min, Discussion) Yvette Lewis-Molok, Assistant City Attorney 5. [6:15] 2024 IECC UPDATE (45 Min, Decision) Brad Smith, Sr. Project Manager 6. [7:00] BREAK (10 Min.) 7. [7:10] CITY COUNCIL PRIORTY 6 PREVIEW (30 Min., Discussion) Brian Tholl, Energy Services Director 8. [7:40] DISCUSS DRAFTING MEMO RE: LARGE METHANE USER FEE (30 Min., Decision) 9. [8:10] FUTURE AGENDA REVIEW (5 min.) Participation for this Energy Board Meeting will be in person at 222 Laporte Ave. Participation is also available online via Teams. Click or copy/paste this link into your browser: fcgov.com/energy-board-regular-meeting Online Public Participation: The meeting will be available to join beginning at 5:15 pm, May 8, 2025. Participants should try to sign in prior to the 5:15 pm meeting start time, if possible. For public comments, the Chair will ask participants to click the “Raise Hand” button to indicate you would like to speak at that time. Staff will moderate the Teams Meeting to ensure all participants have an opportunity to address the Board or Commission. To participate: • Please note: You do not need a Microsoft account or the Teams App to join or participate in the meeting. • Use a laptop, computer, or internet-enabled smartphone. (Using earphones with a microphone will greatly improve your audio). • You need to have access to the internet. • Keep yourself on muted status. ENERGY BOARD REGULAR MEETING 10. [8:15] ADJOURNMENT HOW TO JOIN A TEAMS MEETING WITHOUT A MICROSOFT ACCOUNT: You can join a Teams meeting anytime, from any device, whether or not you have a Teams account. If you don't have an account, follow these steps to join. 1. Select or copy/paste the following link: fcgov.com/energy-board-regular-meeting 2. That'll open a web page, where you'll see two choices: “Continue on this browser” and “Join on the Teams app”. You do not need to install the Teams app to join the meeting. 3. If you join the meeting on your browser, Microsoft Edge or Google Chrome will both work. Your browser may ask if it's okay for Teams to use your mic and camera. When you select Allow, you should always turn off your mic and/or video once you join the meeting. 4. When you're ready, select Join now. 5. Tip: Join the meeting up to 15 minutes before the meeting start time to test your setup, troubleshoot, or see how Teams works. Meeting organizers and participants won't be notified that you've joined the meeting until 15 minutes before the scheduled start time. ENERGY BOARD April 10, 2025 – 5:30 pm 222 Laporte Ave – Colorado Room ROLL CALL Board Members Present: Aleksander Thorstensen, Jason Hevelone, Natalie Montecino, Frederick Wegert, Wendell Stainsby, Scott Canonico, Brian Smith, Jeremy Giovando, Marge Moore Board Members Absent: OTHERS PRESENT Staff Members Present: Christie Fredrickson, Brian Tholl, Michael Authier, Gabe Stuhr, Joe Wimmer, Katie Varney (remote), Yvette Lewis-Molock (remote), Mary Horsey (remote) Members of the Public: Halee Wahl MEETING CALLED TO ORDER Chairperson Smith called the meeting to order at 5:30 pm. ANNOUNCEMENTS & AGENDA CHANGES None. PUBLIC COMMENT None. APPROVAL OF MINUTES In preparation for the meeting, board members submitted amendments via email for the March 13, 2025, minutes. The minutes were approved as amended. NEW BOARD MEMBER INTRODUCTIONS Board members went around the room to introduce themselves. 2024 YEAR-END FINANCIAL UPDATE Joe Wimmer, Director, Utilities Finance Gabe Stuhr, Analyst II, Finance Revenues ended favorably in 2024, coming in over budget by a total of $11.7 million. That was mostly driven by development fees, but Mr. Wimmer explained that while it’s great to have those fees in excess, they can be somewhat volatile (since they are driven by new development) and can’t be counted on from year to year. Interest also contributed to the favorable revenues, which is typically budgeted for conservatively since it also can’t be planned for year to year. Expenses for the year ended under budget, ending the year $7.5 million under budget. The Utility is working on several capital projects, inclusive of about $65 million worth of capital projects ongoing right now, spending about $6 million from the comprehensive list in 2024. Mr. Stuhr called out some of the trends the Utility is currently seeing. As Mr. Wimmer stated earlier, the City had some large projects this year that drove development fees to be higher than normal, and the ENERGY BOARD REGULAR MEETING same was true for interest revenue. Mr. Stuhr noted that the Utility was able to take advantage of bond rates and get more interest revenue than it typically would, which is great. Vice Chairperson Moore asked what new developments influenced fees in 2024. Mr. Stuhr said the biggest driver was a large capacity expansion project for Hewlett Packard. On the operating expense side ($142.7 million), expenses are mostly driven by wholesale costs of purchase power from Platte River Power Authority, which is 73% of Light & Power’s Operating expense. Rates will continue to increase as Platte River increases their wholesale costs, plus any inflation. Mr. Stuhr noted that inflation is also hitting many of the Utility’s goods, such as transformers. Board member Giovando asked if staff could break down the expense categories for the Board’s new members. Mr. Stuhr explained the following: Purchase Power is the Utility buying wholesale power from the generation Utility (Platte River). L&P Operations are personnel costs. PILOTs are Payment in Lieu of Taxes, which is payment made to compensate a government for some or all of the property tax revenue lost due to tax exempt ownership. Admin Services are for Customer Service and Administration (which works with all four utilities). Energy Services are the Utility’s incentive and rebate programs. Other Payments & Transfers include internal services outside of utilities for general governmental support (HR, finance, IT, City Attorney, etc.). Mr. Stuhr explained there are two categories within capital projects: system additions and replacements (for development that is expanding the electric system—funded by development fees), and other capital (improvement projects of the existing system). Ideally, if you took all of operations, staff would want 25% rolling over the next year to serve as a buffer for resiliency and volatility of costs going up. The available fund balance would be anything the Utility would want available for capital project escalation. Board member Canonico commented that as a rate payer, it is a little bit concerning that there is a surplus of revenue when electric rates are going up by 6.5% this year. Staff understood and noted that much of that revenue is going to be spent on capital projects that have already been committed to and approved but the projects haven’t been started yet. Mr. Stuhr said compared to a private entity, it is unusual to hold a lot of capital, but the Utility doesn’t issue debt and does not like to take on debt. Board member Thorstensen asked if rate increases are passed along evenly among electric rate classes. Mr. Wimmer explained that every few years, staff completes a cost-of-service study to determine how those increases are applied. The next rate cycle will pass evenly among all, and then a cost-of-service will be completed to determine the split for the next cycle. 2024 ENERGY SERVICES PROGRAM ACHIEVEMENTS Michael Authier, Mechanical Engineer III Energy services hosts about 40 Utilities-led energy programs. There are many methods that the Utility can support customers, but they generally fall within four mechanisms: economic, behavioral, infrastructure, regulatory. For example, Building Performance Standards would fall under a regulatory program, and it affects commercial and multifamily customers. All of the programs fall under an area of focus (ordered by earliest implementation): financing, grid flexibility, income qualified efficiency, business efficiency, home efficiency, distributed generation, new construction, or behavioral efficiency. The primary guiding policy for these programs is Our Climate Future (OCF). OCF was adopted by City Council in 2021 and encompasses the previous plans for Climate Action, Energy Policy, and Zero Waste. OCF was built around equity, resilience, and mitigation and developed in partnership with the community ENERGY BOARD REGULAR MEETING including Big Moves (transformational outcomes), Next Moves (actions to achieve outcomes), and goals (progress indicators but not comprehensive of outcomes). Light & Power and Energy Services both focus in on Big Move 12 (100% Renewable Electricity) and Big Move 6 (Efficient Emission Free Buildings). Mr. Authier explained that though the goal is measurable (ex. 100% renewable electricity), the outcome is more nuanced: “Everyone in the community receives affordable and reliable 100% renewable electricity, including from local sources,” -- there is not a goal around affordability, but that is a clearly stated outcome. He added that though there may not be a goal for some of these outcomes, it’s still important to track progress to it and identify what the best way to do that through the rest of the Next Moves. OCF Next Moves started with over 1,000 initial community-generated ideas. They were consolidated down to 450, and there are currently over 100 in process across the inventory areas (including 40 energy- related moves). These are grouped into pathways; for example, the emissions 2030 pathway has electricity (27.3%), buildings (10%), transportation (5.8%), industry (2.3%), waste (1.6%), and land use (0.1%). Mr. Authier noted that the ones that are in progress are generally the ones that are the most cost effective or have the biggest impact, and the remaining ones for energy, for example, are mostly regulatory education-based moves with lower cost effectiveness. Along with OCF and its energy-related goals, there are also related policies that directly affect the work that staff does. These policies are Platte River’s Resource Diversification Policy and the State’s Clean Energy Plan. Platte River’s Resource Diversification Policy is for proactively working toward the goal of reaching a 100% non-carbon resource mix by 2030, while maintaining Platte River’s three pillars of providing reliable, environmentally responsible and financially sustainable electricity. The Clean Energy Plan states that any clean energy plan at the public utilities commission that, as filed, will achieve at least an 80% reduction in greenhouse gas emissions caused by the utility's Colorado retail electricity sales by 2030 relative to 2005 levels. Board member Canonico asked if there is any clarity or interpretation provided for 100% renewable energy and what that means within these documents. Mr. Authier said the goals are indicators of the outcomes and the outcomes are where there's additional clarifying information, within the big moves, but they don’t have any specificity in how things are accounted for, included, or excluded. Ultimately, it is written as a consumption-based goal rather than a resource diversification policy—the community has expressed that they want the community’s consumption to be 100% renewable electricity. Mr. Canonico said that’s the first he’s heard it expressed that way, and that it differs from what many people are advocating for; his opinion is that when you start to pursue 100% and reach that final increment, there is increasing likelihood of choosing cost-ineffective pathways that might also not be the best environmental solution either. He added that having a balanced perspective would be very healthy and help set reasonable expectations with better outcomes for all. Mr. Tholl added that maybe that is the question, what is the community interested in? Maybe the context is to do whatever you can do to get as close to those goals in the next six years or is there a desire to get into the details and consider setting a new goal for Fort Collins. Mr. Canonico thinks that would be helpful to City Council, to be able to say, “we looked at it and this is practical, and this isn't, this is the one way to interpret it.” Within the OCF outcome areas, there are several energy related outcomes: building energy code adoption & performance, electric grid flexibility, electric grid reliability, electricity affordability, electricity consumption and renewable energy, natural gas consumption, and greenhouse gas emissions. A 2018 study of community new home energy use per built aera showed local energy code compliance of 73%. Since then, a code compliance position was hired, and compliance is now currently around 83% (compared to the national rate of approximately 70%). ENERGY BOARD REGULAR MEETING Grid flexibility is designed to help reduce peak demand. Doing things like preheating a water heater, or setting back the thermostat temperature, so these devices can coast through the peak shed and reduce usage during peak demand periods. Periods immediately before and after the peak demand are known as sinks, and they pull more energy to try and prepare or catch up. The two of these combined are known as bidirectional flexibility, and there is a goal for its capacity in OCF of 2.6% of the 2024 peak demand. In 2030 that goal increases to 5%. There are five metrics in electricity reliability: SAIDI (System Average Interruption Duration Index), SAIFI (System Average Interruption Frequency Index), CAIDI (Customer Average Interruption Duration Index), and MAIFI (Momentary Average Interruption Frequency Index), and ASAI (Average System Availability Index). For ASAI, the goal is 99.9956%, and in 2024 the Utility was at 99.9979%. One of the takeaways is that since 1995, the number of services provided has doubled but reliability has remained consistent. Services have doubled since 1985, but reliability has remained consistent. In 2024, SAIDI averaged 11 minutes (of average outage length). As a point of reference, the Colorado average in 2023 was 99 minutes and the national average was 342 minutes. Mr. Tholl highlighted that in the written goals for both Platte River and Fort Collins is that both organizations do call out the environmental, reliable, and affordable components of it, meaning none of the steps toward 100% renewable electricity should be done at the expense of electric reliability. In residential affordability, there has been an 89% residential rate increase since 2005, but only a 68% monthly cost increase (~$32 monthly bill, not adjusted for inflation). Mr. Authier said there are a couple contributing factors: consumption per residential customer has come down, and there are more components available to leverage (ex. on peak rates vs. off peak), and without energy efficiency programs, 2024 electricity consumption would have been 22% higher. He highlighted that Fort Collins Utilities rates remain some of the lowest in Colorado and below average nationally. Additionally, within consumption, 2024 wholesale energy purchases would’ve been 25% higher without efficiency & local generation, and 2024 consumption from carbon generation would’ve been 132% higher without efficiency & renewables. Mr. Authier pointed out a significant drop in carbon consumption in 2020, which is attributed to the Roundhouse Wind facility coming online. He expects to see a similar drop when the Black Hollow Solar project comes online this spring. Even though the Utility’s programs are focused on electric savings, there is a specific natural gas goal and some of the plan’s Next Moves are reducing natural gas usage, including things like Building Performance Standards (which has a significant impact on natural gas). With all the Next Moves factored in, the community can get to a reduction of 17% of natural gas by 2030. With all next moves factored in, Staff is projecting 69.8% total emissions reduction by 2030 (the goal is 80%). Mr. Tholl noted that 70% is only attainable if there is budget and federal funding, as well as regulatory and political support. There are pathways to achieve it, but it needs several levels of support to get there. Mr. Authier also said that utility-scale renewables (Platte River) have the most potential to make a sweeping impact, as well as local buildings. Board member Wegert asked what “5% local sources” entail. Mr. Tholl explained that local resources refer to distributed energy resources generated in Fort Collins, such as local solar connected to the distribution grid (different than utility scale from Platte River). OFFICER ELECTIONS ENERGY BOARD REGULAR MEETING Board member Moore’s is unable to serve another term as Vice Chair at this time because she is focused on several professional commitments, so the Board is holding an officer election for Vice Chairperson. Chairperson Smith called on the Board to suggest nominations for the seat. Board member Stainsby nominated Board member Wegert to serve as Vice Chairperson of the Energy Board. Board member Wegert accepted the nomination. With no other nominations brought to the floor, Chairperson Smith declared nominations closed. Board member Canonico moved Board member Wegert to serve as the new Vice Chairperson of the Energy Board. Board member Moore seconded the motion. Additional Discussion: None. Vote on the motion: It passed unanimously, 9-0. BOARD MEMBER REPORTS Vice Chairperson Wegert said a canvasser from Community for Sustainable Energy stopped by his home and was advocating for the OCF local renewable resource goals to be higher. He encouraged them to come to a future Energy Board meeting to speak during public comment. FUTURE AGENDA REVIEW The Board’s May meeting will have presentations about 2024 IECC codes and a preview of City Council Priority 6. ADJOURNMENT The Energy Board adjourned at 7:55 pm. May 6, 2025 Fort Collins Energy Board 222 Laporte Ave. Fort Collins, CO 80521 Dear Energy Board Members: The Fort Collins Area Chamber of Commerce is aware of a proposal promoted by the Fort Collins Sustainability Group regarding the imposition of a fee upon businesses and commercial building owners based upon the usage of natural gas. This so-called Large Methane User Fee (LMUF) is being presented as an alternative to a franchise fee that would be imposed upon providers of natural gas to the Fort Collins market. Though the franchise fee increase approved by Council is currently suspended, that fee would be paid by all natural gas customers based upon usage. The proposal further states the intent to incentivize certain natural gas users to convert to electrification of their facilities and/or processes. While we share a desire to improve air quality and minimize the effects of fossil fuel consumption, we wanted to share a business perspective with this Board. As presented, this proposal is clearly punitive in nature and lacks critical context. Fundamentally, there has been no effort on the part of proponents to engage with the business community to understand the challenges and limitations of such a policy. As requisite detail has not yet been provided by proponents, we offer the following points of concern: • As natural gas consumption is not subject to open records requests and no usage threshold is quantified, we are left to wonder how proponents have identified which buildings and businesses would be subject to this new fee, how the total projected fee collection is calculated, and methodology for establishing an optimal fee structure. • In the absence of key assumptions, it appears highly speculative to project whether this fee would effectively reduce natural gas consumption as opposed to simply increasing operating costs for both fee payers and the City as the regulating agency. • Higher utility costs to businesses are invariably paid by end consumers through price increases. With electric utility rates scheduled to increase by 6.5%, considerable concern remains for even higher inflation as energy source conversion costs become more apparent. Unless household incomes move in lockstep, this fee would further aggravate the financial stress many in our community are expressing. • For certain businesses and commercial property types, electrification is impractical or cost prohibitive. Food service offers a prime example. Electric cooking appliances are not currently available or functional in all applications. This fee would essentially punish a low-margin industry for the benefit of other businesses capable of pursuing electrification strategies. At a time of tremendous economic uncertainty and social upheaval, imposing new costs and market distortions are unwelcome in the absence of a clear and cogent strategy with demonstrable benefit to the entire community. The Fort Collins Area Chamber of Commerce remains steadfast in our commitment to building a healthy environment in which all residents are provided with the opportunity to succeed. We respectfully suggest the LMUF proposal fails to consider the detrimental effects of pursuing one element of that platform to the detriment of all others. Sincerely, Fort Collins Area Chamber of Commerce Ann Hutchison, President & CEO Mayor City Hall Fort Collins, CO 80522 970.416.2154 970.224.6107 - fax fcgov.com April 17, 2025 Natural Resources Advisory Board c/o Honore Depew, staff liaison PO Box 580 Fort Collins, CO 80522 Dear Chair Metcalf and Board Members: On behalf of City Council, thank you for providing us with the April 16, 2025 memorandum regarding the Board’s recommendation that the staff continue to examine the Large Methane User Fee and report back to Council. Thank you for the expertise and perspectives that you bring to the Board and share with City Council. Best Regards, Jeni Arndt Mayor /sek cc: City Council Members Kelly DiMartino, City Manager MEMORANDUM AIR QUALITY ADVISORY BOARD & NATURAL RESOURCES ADVISORY BOARD DATE: April 16, 2025 TO: Mayor and City Council Members FROM: Natural Resources Advisory Board SUBJECT: Large Methane User Fee Dear Mayor and Councilmembers, The Natural Resources Advisory Board (NRAB) recently learned about the proposed Large Methane User Fee (LMUF) that would be assessed upon the City’s largest methane users, with the proceeds used to help these same entities reduce their methane use. At this time, the Board does not have enough information to endorse the proposal, but we do think that it should be further researched. The NRAB recommends that City Council direct staff to examine the LMUF, including the various options for its implementation, and report back to Council with their findings. Should the proposal be feasible, it would have the potential to assist Fort Collins in reaching its greenhouse gas emission goals. Very Respectfully, Dawson Metcalf Chair, Natural Resources Advisory Board cc: Kelly DiMartino, City Manager Jacob Castillo, Chief Sustainability Officer Honore Depew, NRAB Staff Liaison and Climate Program Manager Kelly Ohlson, City Council Liaison to the AQAB and NRAB Headline Copy Goes Here Energy Code Project Manager Brad Smith Building Energy Code – Performance Path to Zero Carbon New Construction by 2030 02-13-2024 Headline Copy Goes Here 2 Project Clarification What this project is. 1.A building code for new construction 2.Meeting the desires of the community - OCF 3.A transparent, flexible approach to building 4.Innovative What this project isn’t. 1.A ban on gas 2.Building Performance Standards (BPS) 3.Restrictive building code approach 4.Forgone conclusion Headline Copy Goes HereStatus of State Energy Code State of Colorado •No adopted state building code - “home rule” Headline Copy Goes Here Energy Code in Colorado 4 •Energy code legislation •CO HB 19-1260 established min energy code •Important date: •August 2, 2019 •CO HB 22-1362 Building Greenhouse Gas Emissions •Important dates: •June 1, 2023 - EV, PV, Electric Ready Codes •July 1, 2026 – Low Energy and Carbon Code •In addition, the Colorado Energy Office will develop a Model Green Code that local governments may voluntarily adopt, in addition to the required energy code. The model green code will address building attributes such as energy efficiency (above minimum code), water efficiency, and embodied carbon in building materials. Headline Copy Goes Here 5 Energy Code Adoption International Code Council (ICC) publishes code every three years •ex: 2012, 2015, 2018, 2021, etc. Current Building Code •The 2021 body of codes were adopted on April 15, 2022 (with local amendments). •City policy to adopt energy code within one year after publish •eg: The ICC code finalized Aug 2024 we’re targeting adoption late 2025. Headline Copy Goes Here 6 Energy Code Paths to Compliance There are four compliance paths available: Prescriptive •Dictates how to build •More traditional UA Alternative •Requires building modeling •Modeled overall UA score cannot exceed code maximum UA •*UA is used to measure whole-building heat loss Performance •Requires building modeling •Modeling demonstrates annual energy cost does not exceed code baseline ERI (Res)/ ASHRAE 90.1 (Comm) •Requires building modeling •Modeling to an energy score (ERI) / annual energy cost does not exceed code baseline The Performance Path for new construction provides: •Flexibility •Transparency •Real energy outcomes (kWh & Therms) •Fossil fuel de-biasing of the code – (aim of this project) •Data-informed decision-making Headline Copy Goes Here 7 Our Climate Future Big Move 6 EFFICIENT, EMISSIONS FREE BUILDINGS EEFB2: Develop and energy performance path for new construction to zero carbon building by 2030. Community Conversations 2019 Headline Copy Goes HereWhat is a zero carbon / energy building? 1.Energy Efficient 2.Free of on-site GHG emissions from energy use 3.Powered by 100% non-carbon energy 4.Ability to utilize demand response for electric grid resilience Fort Collins’ definition of a zero-carbon new building / home: Headline Copy Goes Here 9 RECI Application & Award Technical Summary: Project Lead: •City of Fort Collins Supporting Team: •Florida Solar Energy Center •New Buildings Institute •International Code Council •Colorado Energy Office *Building Energy and Water Scoring – Fort Collins Commercial Buildings Benchmarking program. www.fcgov.com/BEWS Develop methodology that establishes Energy Use Intensity (EUI) and CO2e targets Form stakeholder group Document baseline performance from utility analysis - *include utilizing BEWS data •Implementation guide and trainings Develop and adopt performance code in Fort Collins Evaluate effectiveness of implementation from compliance performance perspectives Full application submitted March 27, 2023 – Fort Collins awarded $693,595 July 12, 2023! Headline Copy Goes Here 10 Zero Carbon Energy Code Timeline Preview Proposed approach (Fort Collins) – Beginning w/ 2024 code cycle 2nd quarter 20253rd / 4th quarter 2024 ~2nd quarter 2025 / 3rd quarter 2025 4th quarter 2026 thru 2nd quarter 2027 1st quarter 2025 / 2nd quarter 2025 Develop EUI & CO2e reduction targets Develop performance code path & language Create implementation guide & training offerings Community engagement & Council adoption Evaluate effectiveness, measure performance, adapt targets publish date 8/15/2024 Headline Copy Goes Here2030 Goal for Commercial 2030 Zero Carbon Commercial Building Code Goal – achieve zero carbon energy use for buildings by type Headline Copy Goes HereCurrent Fort Collins Performance 12 Courtesy - New Buildings Institute Headline Copy Goes HereTarget Setting •Measured •Modeled •Market Research Courtesy - New Buildings Institute Headline Copy Goes Here 14 Analysis Results Courtesy - New Buildings Institute Headline Copy Goes Here 15 Fort Collins Commerical Energy Target Progression Courtesy - New Buildings Institute Trajectory from Fort Collins 2021 Energy Code to 2030 Energy Code Note: w/out inclusion of renewable energy 20 2 1 – 20 2 4 – 20 2 7 – 20 3 0 – 20 2 1 – 20 2 4 – 20 2 7 – 20 3 0 – Headline Copy Goes HereFort Collins Commercial % Energy Improvements Courtesy - New Buildings Institute Headline Copy Goes Here2030 Goal for Residential 2030 Zero Carbon Residential Building Code Goal – achieve zero carbon energy use for each new home Headline Copy Goes Here 18 Carbon (CO2e) Index The HERS Carbon Index is on a scale of 0 for a zero carbon home and 100 for an all electric home built to the 2006 IECC code. Procedure is very similar to HERS Index, the home is compared to a reference home with similar geometry. Note: This does not address embodied carbon. Headline Copy Goes HereCO2e Emissions Winter Day: Heat Pump v. Natural Gas Non heating hours Headline Copy Goes HereProposed CO2e Index Steps 2024 CO2e Index: 50 2027 CO2e Index: 25 2030 CO2e Index: 0 Headline Copy Goes Here2030 Zero Carbon Residential Building Code Scenarios Modeled homes are 2,881 ft2 detached - 1,298 ft2 attached Characteristic DETACHED ATTACHED Fort Collins 2021 Zero Carbon 2030 Fort Collins 2021 Zero Carbon 2030 AC SEER2=14.3 SEER2=19 SEER2=14.3 SEER2=19 Heating AFUE=0.9 HSPF2=10 AFUE=0.9 HSPF2=10 Ducts Attic, qn 0.04 Conditioned, leakfree Attic, qn 0.04 Conditioned, leakfree HVAC Grade 3 1 3 1 Thermostat Non-programmable Smart Non-programmable Smart Appliances Standard EnergyStar®Standard EnergyStar® DHW 40 gal, AFUE 0.63 HP, UEF=3.3 Tankless, UEF=0.92 HP, UEF=3.3 House Leakage ACH50=3 ACH50=2 ACH50=3 ACH50=2 Windows U=0.28, SHGC=0.35 U=0.26, SHGC=0.50 U=0.28, SHGC=0.35 U=0.26, SHGC=0.50 Walls R20, R5 cont.R20, R10 cont.R30 R20, R10 cont. PV None 9.6kW None 6.4kW kBtu/SF 27.4 -3.8 42.3 -5.3 ERI 55 -11 52 -10 CO2e Index 119 0.0 126 0.0 we are here and here Headline Copy Goes Here2027 Possible Compliance - Electric Example 2027 All Electric Characteristic DETACHED ATTACHED Fort Collins 2024 Fort Collins 2027 Fort Collins 2024 Fort Collins 2027 AC SEER2=19 SEER2=19 Heating HSPF2=9 HSPF2=10 HSPF2=9 HSPF2=10 Ducts Attic, qn 0.04 Conditioned, leak free Attic, qn 0.04 Conditioned, leak free HVAC Grade 3 1 1 Thermostat Smart Smart Appliances Standard EnergyStar®EnergyStar® DHW HP, UEF=3.3 HP, UEF=3.3 House Leakage ACH50=3 ACH50=2 ACH50=3 ACH50=2 Windows U=0.28, SHGC=0.35 U=0.26, SHGC=0.50 U=0.28, SHGC=0.35 U=0.26, SHGC=0.50 Walls R20, R5 cont.R20, R10 cont.R30 R20, R10 cont. PV None 3.6 kW None 2.8 kW ERI 50 20 49 20 kBtu/SF 22.8 7.0 25.3 10.5 CO2e 50 25 50 25 Headline Copy Goes Here2027 Possible Compliance Options – with Gas Heat & Hot Water Example 2027 Gas Option Characteristic DETACHED ATTACHED Fort Collins 2024 Fort Collins 2027 Fort Collins 2024 Fort Collins 2027 AC SEER2=19 SEER2=19 Heating AFUE=0.9 AFUE=0.9 Ducts Conditioned, leak free Conditioned, leak free HVAC Grade 1 1 Thermostat Smart Smart Appliances Energy Star®Energy Star® DHW Tankless, UEF=0.92 Tankless, UEF=0.92 House Leakage ACH50=2 ACH50=2 Windows U=0.26, SHGC=0.50 U=0.26, SHGC=0.50 Walls R20, R10 Cont.R20, R10 Cont. PV 9.2 kW 15.5 kW 8.0 kW 12 kW ERI -9 -43 -23 -56 kBtu/SF 4.8 -5.8 2.7 -13.0 CO2e 50 25 50 25 Headline Copy Goes HereHow can you help? 1.Continue to be aware and informed – Will update board once code is written 2.Share with your network / disseminate importance of energy code •Learn more: https://www.fcgov.com/zerocarboncode - Click “Learn more or engage with staff” link/button •Encourage fellow community members to share thoughts through site link 3.Inform City Council – Support Building Services in adoption of code(s) 4.Attend upcoming event – FoCo EcoFest – June 14th, 10-1 pm, Washington Park - https://www.fcgov.com/ecofest Headline Copy Goes Here Headline Copy Goes Here Climate Program Manager Honore Depew Council Priority Update: Reduce Climate and Air Pollution Through Best Practices, Emphasizing Electrification 5-13-2025 Brian Tholl Energy Services Director Headline Copy Goes Here 2Strategic Alignment City Plan Reduce Climate and Air Pollution Through Best Practices, Emphasizing Electrification Principle ENV 2: Become a carbon neutral community by 2050 and improve the community’s resilience to prepare for and adapt to the impacts of climate change. Environmental Health 1:Implement the Our Climate Future Plan to advance the City’s greenhouse gas, energy and waste goals; reduce air pollution; and improve community resilience. Strategic PlanCouncil Priority Our Climate Future 80% greenhouse gas emissions reduction by 2030 100% renewable electricity Headline Copy Goes Here 3 Questions 1.What questions do Councilmembers have about the elements underway in this Council Priority? 2.Does the OCF approach align with Councilmember expectations for this priority area? Headline Copy Goes HerePresentation Contents 4 1)OCF Context 2) Current Efforts 3) Building to the Future Headline Copy Goes Here Our Climate Future Context 5 Headline Copy Goes Here 6 Our Climate Future – Big Moves BETTER TOGETHER RESOURCE BETTER LIVE BETTER BREATHE BETTER • Shared Leadership and Community Partnership • Zero Waste Neighborhoods • Climate Resilient Community • Convenient Transportation Choices • Live, Work, and Play Nearby • Efficient, Emissions Free Buildings • Healthy Affordable Housing • Local, Affordable and Healthy Food • Healthy Local Economy and Jobs • Zero Waste Economy • Healthy Natural Spaces • 100% Renewable Electricity • Electric Cars and Fleets Equity – Resilience – Mitigation Headline Copy Goes HereCommunity-wide OCF Goals 7 •Greenhouse Gas Emissions Reduction •50% below 2005 baseline by 2026 •80% below 2005 baseline by 2030 •Carbon Neutral by 2050 •100% renewable electricity by 2030 •Zero waste, or 100% landfill diversion, by 2030 Headline Copy Goes Here 8 Community Greenhouse Gas (GHG) Inventory *IPPU: Industrial Process and Product Use – non-energy emissions that are used as an input or created as a byproduct from indust rial activities Headline Copy Goes HerePathways to Progress (2030 OCF Renewable Electricity Goal) Headline Copy Goes Here 10 Air Quality Data Drivers of poor air quality: •Environmental sources (e.g., wildfires) •Regional sources (e.g., oil & gas extraction, transportation) •Local sources (e.g., transportation, industry, small engines) •Indoor sources (e.g., cleaning products) AQ Index: Monitor ozone (O 3) and particulate matter (PM 2.5), plus special studies for Hazardous Air Pollutants (HAPS, such as benzene) Oil and Gas 33% Vehicles 22% Other Engines (e.g., L&G) 13% Industrial (non-EGU) 11% Environmental 6% Electricity Generation (EGU) 4% Other 11% Headline Copy Goes Here2050 Tax – 2024 Impact Summary •75 direct home upgrades and 31 loans for residential energy efficiency, comfort and safety •60 residential indoor air quality assessments •27 sustainability workforce scholarships •16 grants to local food service businesses to reduce single -use plastics •7 electric utility carts to replace gas carts •3 major Active Modes infrastructure improvements for safety, connectivity and accessibility •3 comprehensive lighting upgrades to community centers •Support for 140 affordable homes to go above-and- beyond code for sustainability •Repair of community solar project, supporting 500 kW of local solar generation $4M funded 16 projects across 8 OCF Big Moves Focus on transportation, buildings and electricity (primary contributors to air & climate pollution) and improving community resilience, safety and accessibility Leading by Example : City efficiency, renewables and electrification Headline Copy Goes Here Current Efforts 12 Headline Copy Goes Here 13 Strategic Impact – Organizing the Work 1313 Utility Rates Incentives Financing Other City Fees Distribution Grid Contractors & Workforce Advanced Grid Management Education Awareness Transparency Technical Assistance Policies Building Codes Standards The City of Fort Collins has four key tools to drive community progress to electrification and decarbonization. A balanced and strategic approach supports: •Customer service •Achievement of goals •Triple-bottom line benefits Areas of Influence •Economic Drivers •Regulations & Policy •Infrastructure Investments •Behavior Change (Education) Headline Copy Goes Here 14 Council Priority: Reduce Climate and Air Pollution Through Best Practices, Emphasizing Electrification Electrification of Buildings Electrification of Transportation/Fleet Vehicles Electrification of Small Engine Equipment Headline Copy Goes HereCurrent Building Efforts •$ Incentive based programs framework •Operational technology enhancements Investments in Virtual Power Plant (VPP) efforts Distribution planning enhancements •Support electrification through asset management •$4.4M incentive based programs framework in '24 Enhance incentive and educational initiatives for efficiency, electrification and grid Flexibility efforts •Time of Day Utility rates and electric capacity fee evaluation Evaluate rates and fees framework to eliminate barriers •Pilot underway supporting policy development Development of Building Performance Standards framework •2025 work session and/or adoption Zero carbon building code framework, new construction Infrastructure Investments Regulation & Policy Economic & Behavioral Headline Copy Goes HereCurrent Transportation/Fleet Efforts •Optimize EV infrastructure requirements in new development Evaluation of EV infrastructure in Building code •Supporting alternative electric transportation options •EV ownership and charging availability •EV Readiness Roadmap Update to be published soon Supporting community education and awareness on electric transportation options •74 out of 989 Vehicles are EV or Hybrid •SMART Grant implementation Electrification of fleet vehicles •6 Electric Buses in Service •5 Additional expected delivery by Early 2026 Electrification of Transit Vehicles Infrastructure Investments Regulation & Policy Economic & Behavioral Headline Copy Goes HereCurrent Small Engine Equipment Efforts Promoting clean air benefits within municipal operations •Regional rebates for electric lawn and garden equipment •Natural Areas: 80% •Parks: 91% •Other Departments actively converting and cataloguing Electrification of gas- powered landscape equipment Electrification of Utility task vehicles •7 utility carts replaced •2050 Tax supported •Municipal operations on track for compliance, Summer 2025 •Electrification underway for all relevant departments Compliance with CDPHE Regulation 29 Infrastructure Investments Regulation & Policy Economic & Behavioral Headline Copy Goes HereNext Steps 18 Building Electrification •Continue incentive development using enterprise and 2050 Tax •Implement 2028 and 2031 Building Energy code implementation Lead by Example: •Continue to seek grant funds for municipal operations Transportation/Fleet •Publish and begin implementation for EV Readiness Roadmap •Revisit LUC/building code requirements for EV infrastructure; evaluate alignment with State Lead by Example: •Implement and operationalize SMART grant Small Engines •Continued Engagement with relevant City Departments to prepare for compliance Lead by Example: •Compliance with Regulation 29 Headline Copy Goes Here Building to the Future 19 Headline Copy Goes Here 20 Our Climate Future Strategic Alignment Strategic Objective ENV 1: Implement the Our Climate Future Plan to advance the City’s greenhouse gas, energy and waste goals; reduce air pollution; and improve community resilience. Headline Copy Goes Here 21 The Big Question of Local Gov Sustainability How do we achieve medium- and long-term goals for our community when commitments to transformational change can be in tension with near - term priorities and resource constraints of two -/four-year budget and election cycles? Our Climate Future as Strategic Framework: Goals, Vision & Implementation Areas of Influence •Economic Drivers •Regulations & Policy •Infrastructure Investments •Behavior Change (Education) Headline Copy Goes HereOur Climate Future – 2025 Strategic Refresh & Funding Plan 22 Process •Gaps assessment to better understand organizational needs; p eer city research •Assessment of current revenue streams, funding priorities, and sequencing Outcomes •Enhanced Our Climate Future Framework •More effective and inclusive of the City’s sustainability efforts (e.g., air quality) •Aligned & integrated with municipal sustainability & adaptation efforts •Coordinated planning, implementation, and storytelling •Strategic Funding Plan •Strategy and guidance document with 25-year time horizon (to 2050) •High-level vision and guidance in the med/long term •Clarity and focus for implementation strategy in the near term Headline Copy Goes HereOCF Strategic Refresh & Funding Plan: Project Timeline Project Initiation Consultant hired Compile historic OCF-related material Dec—Jan SWOT Analysis Targeted Survey 1-1 Interviews Dept. Focus Groups February—May OCF Framework Refresh Aligned w/ Muni Sustainability Enhanced Our Climate Future Framework June—July OCF Strategic Funding / Next Moves Plan Assessment of funding/revenue priorities & needs Sequencing of Next Move strategies July—Q4 Council Work Session Strategic Funding Plan completed for 2026 Council Priority Setting Q4 2025 Headline Copy Goes Here 24 Questions 1.What questions do Councilmembers have about the elements underway in this Council Priority? 2.Does the OCF approach align with Councilmember expectations for this priority area?