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HomeMy WebLinkAbout09/11/2025 - ENERGY BOARD - AGENDA - Regular Meeting ENERGY BOARD REGULAR MEETING September 11, 2025 – 5:30 pm 222 Laporte Ave – Colorado Room Teams – See Link Below 1. [5:30] CALL MEETING TO ORDER 2. [5:30] PUBLIC COMMENT 3. [5:35] APPROVAL OF AUGUST 14, 2025 MINUTES 4. [5:45] STAFF REPORTS (30 Min.) • Light & Power Operational Updates Brian Tholl, Energy Services Director • IECC Code Debrief Brad Smith, Senior Project Manager 5. [6:15] OUR CLIMATE FUTURE PLAN & STRATEGIC FUNDING UPDATE (45 Min, Discussion) Grant Stump, Lead Spc, Env Sustainability 6. [7:00] RENEWABLE ENERGY GOAL MEMO (30 Min, Discussion) 7. [7:30] FUTURE AGENDA REVIEW (5 Min.) 8. [7:35] BOARD MEMBER REPORTS 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, September 11, 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 9. [7:40] 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 August 14, 2025 – 5:30 pm 222 Laporte Ave – Colorado Room ROLL CALL Board Members Present: Frederick Wegert, Wendell Stainsby, Marge Moore, Aleksander Thorstensen, Scott Canonico, Brian Smith, Natalie Montecino (remote), Jeremy Giovando Board Members Absent: Jason Hevelone OTHERS PRESENT Staff Members Present: Christie Fredrickson, Brian Tholl, Michael Authier, Travis Walker, Brad Smith, Katherine Bailey, Yvette Lewis-Molok (remote), Kimberly Stein Members of the Public: Barb Krupnick Goldman MEETING CALLED TO ORDER Chairperson Smith called the meeting to order at 5:30 pm. ANNOUNCEMENTS & AGENDA CHANGES None. PUBLIC COMMENT Barb Krupnick Goldman is here to ask the Energy Board to reject any changes to the Organic Contract and Power Supply Agreement that would limit the ability of Fort Collins to produce and manage our own renewable energy. She added that Fort Collins and the other partner cities must have the freedom to pursue individual clean energy goals, especially since Platte River has not established a plan or timeline to complete a full transition away from fossil fuels. She also has concerns about the usage of RECs (renewable energy credits) to inflate the amount of energy generation that is non-carbon. APPROVAL OF MINUTES In preparation for the meeting, board members submitted amendments via email for the July 10, 2025, minutes. The minutes were approved as amended. STAFF REPORTS 2024 IECC Code Memo Brian Smith, Senior Project Manager Mr. Smith is here to support the Board’s discussion around the changes to the 2024 IECC code updates. The board is considering drafting a memo ahead of the City Council Work Session scheduled for Sep 9. If Board would like to send a memo of support, they can vote to do so tonight. Mr. Smith explained that this work is closely linked with Our Climate Future Big Move #6 as well as City Council Priority #6 implementing the performance path to zero carbon building was developed as an appendices to the 2024 IECC. Appendix CZ is commercial code, and Appendix RZ is residential code. Code appendices are adopted as part of the City’s code amendment package, and Mr. Smith added that when a jurisdiction adopts an appendix in the code, anybody following that code must follow that ENERGY BOARD REGULAR MEETING appendix. Appendix CZ helps commercial buildings reach zero carbon over the course of three code cycles. The overall objectives of this appendix are for buildings to meet a specified site energy use intensity (EUI) and specified emissions by building type. Electricity emissions are calculated using forecasted or long-run marginal emissions rates for specific time periods. Fossil fuel emissions are calculated by multiplying annual consumption by specified CO2e emissions factors for fuel type. The annual energy emissions values for both a proposed design (how they’ll build) and a standard reference design (code baseline) are calculated through energy modeling software. Where buildings need to meet the renewable energy requirements, compliance must be demonstrated through design of a proposed on-site renewable energy system that meets the required values based upon the conditioned area of the proposed building. Where on-site renewable energy system requirements cannot be met, exceptions are provided for off-site procurement, using procurement factors by building type (restaurants, food processing, crematory, emergency systems, laundromats, or others with high process loads as determined by the Code Official on a case-by-case basis). Mr. Smith gave the example of a fast-food restaurant, which has (on average) roughly 10 times more energy usage per square foot than a typical office building. Chairperson Smith asked if RECs are included as an option to offset energy usage. Mr. Smith said no, not right now, but maybe in future iterations RECs may need to be included (or emissions target may need to be lessened) since there are currently very few local renewable community options. Mr. Smith added that staff recognizes that they may not have the crystal ball and understand how all these buildings will perform and what their loads may be, so once the code rolls out there will be a period of discovering what works. Since this work is being completed over three code cycles, the plan is to learn from the 2024 code cycle and apply that to the development of the 2027 codes. The Residential Code appendix also gives residential buildings a path to reach zero carbon over the course of three code cycles. The requirements are designed to work where residential buildings (less than three stories above grade) use the Energy Rating Index (ERI) compliance path. The software used for calculating ERI compliance is capable of providing a Carbon Dioxide equivalence emissions rating, or CO2e Index value. An index value of 0 represents a residential building that emits zero net CO2e annually. Mr. Smith said an important thing to note is that the energy rating index does not include renewable energy that, much like the Commercial Code, established as a baseline. Mr. Smith gave the example of adding solar to a barn to meet compliance—the builder still has to create a solid building envelope. This appendix is a way to shift the market as we move toward electrification, and it will be difficult to offset emissions with renewables if there is any gas equipment in the home Over the next several code cycles you will see improvements and increases in what’s needed in order to meet the requirements of that code cycle. Mr. Smith said by 2030 he expects to be able to lower the load and probably get to the point where CO2 emissions are offset with a 7K or 8K system. He added that it’s still nowhere near a passive house standard, but it’s still a significant step in the right direction. Mr. Smith pointed out that City Council is looking at 2024 code adoptions, but staff is providing the 2027 and 2030 code information to the community now in order to lead with transparency (i.e. the 2027 and 2030 codes will not be enforced until they are formally adopted by City Council). Board member Moore wondered if the modeling staff used includes embodied carbon (the emissions associated with the entire lifecycle of building materials, from raw material extraction and manufacturing ENERGY BOARD REGULAR MEETING to transport, construction, use, and end-of-life disposal). Mr. Smith said it does not include embodied carbon at this time, but future code cycles may factor it in. He added that the reason it’s currently not included is because there isn’t currently a good source for standardized calculation at this time. If it does end up in future code cycles, he expects it to focus on “the big two,” carbon and steel. Board member Moore moved the Board draft a memo to City Council encouraging them to support the 2024 IECC building codes with Fort Collins amendments. Vice Chairperson Wegert seconded the motion. Additional Discussion: Board member Giovando said in previous code discussions the Board has not heard much about the data that shows how code improvements are effectively reducing building emissions, he thinks it’s an important piece of information to call attention to. Mr. Smith said he would see about sending both commercial and residential data to the Board in order to support their memo. Vote on the Motion: It passed unanimously, 8-0, with one absent. Board members Giovando and Smith will draft the memo. BUILDING PERFORMANCE STANDARDS PILOT UPDATE Katherine Bailey, Project Manager Building Performance Standards (BPS) is a regulatory policy being considered by City Council right now. BPS are a targeted way to cut pollution, reduce energy consumption, and create a heathier and more resilient environment both indoors and outdoors. BPS requires buildings to meet carbon or energy performance targets by specific deadlines, and it can include multiple standards to allow for flexibility while increasing performance. BPS targets become stricter over time, driving continuous, long-term improvement in the building stock. The existing building stock in Fort Collins currently accounts for about 2/3 of the community’s carbon emissions, so a BPS would help make substantial progress toward the City’s Our Climate Future (OCF) goals. Regulatory actions, including BPS, are necessary to achieve OCF emissions goals, but a BPS policy is also beneficial for environmental health, economic health, and physical health. For example, a community of more efficient buildings helps reduce rate pressure, not only for the ratepayer but as well as the Utility. A more efficient building is shown to increase occupancy and tenant retention, which may seem like an owner benefit, but it is also community building and resilience. In Fort Collins, roughly 1/3 of the buildings are already meeting the targets that are outlined in the proposed policy. The Customer journey mapping process is a deep dive into the building owner process, or journey, from first hearing about a BPS policy, all the way to coming into compliance. The journey map was created in partnership with a vendor to meet a variety of objectives to support successful implementation, including generating a shared understanding of the BPS journey for a variety of stakeholders including City Council, City staff, building owners, property managers, and tenants, supporting a smooth and effective rollout by addressing key barriers early, complementing existing engagement and communication strategies to enhance stakeholder buy-in, and identifying potential points of friction and mitigation strategies. The benefit of this process is generating a shared understanding of what the process is (for all policy ENERGY BOARD REGULAR MEETING stakeholders). Ms. Bailey said because this is such a technical policy, it’s important to make sure there is clear, accessible, digestible information available to all covered building owners and their staff. They also heard [from building owners] that it is important to them to have a real person they can call and talk to, so Ms. Bailey emphasized staff’s commitment to providing a robust support system for building owners. The City’s consultant completed interviews with local building owners to help identify positive or negative the sentiments as one works through the steps to compliance, and they created a “map,” or visual timeline, which is divided horizontally (representing a neutral baseline). Each step in the process along the timeline to compliance has a designation of positive or negative sentiment, i.e. receiving the initial notification is a negative sentiment because it causes feelings of concern or panic, whereas receiving final notification of compliance is a positive sentiment because the work is complete. The reason staff wanted to identify these positive and negative moments is so they can ensure they have the resources needed and support staff ready for building owners to help them navigate through the process. Board member Canonico said having a live person to speak with seems hugely helpful and asked if additional staff to help with the pain point mitigations are already included. Ms. Bailey said it is additional staff to what we currently have, but the budgeting to hire the staff is already included in what’s been presented to Council. The technical support pilot completed assessments of the following building types: municipal, multifamily, office, mixed use historic, and restaurant. Ms. Bailey noted that staff heard from Council that it’s important that they incorporated at least one municipal building in the pilot, because it's important that the City demonstrates leading by example. Staff also heard interest in including a historic building to make sure these requirements aren't conflicting with any historic preservation requirements. Two of the buildings included in the pilot are over 100 years old, and every single building is working to meet what is called the maximum reduction cap: 25% maximum reduction in larger buildings and 15% reduction in smaller buildings. Ms. Bailey said staff wants to make sure they are telling the whole story with this program, so pilot participants were not selected to be representative of typical commercial buildings covered by the proposed policy, but rather the buildings are intended to demonstrate potential pathways and real-world scenarios. The pilot included were six buildings in total, and their journey through the process provided some valuable findings and key takeaways. Ms. Bailey said the one that jumps out is the cost variability from one building to another. One building reached a 25% reduction at $0.15 per square foot, but another reached the same percent reduction at almost $10 per square foot. That translates into a lot of variability in terms of what measures are actually being recommended; every building has different recommendations, different potential options, and different pathways to hit their reduction goal. Across the six buildings, the average cost per square foot to come into compliance was $4.35, which is in line with the policy assumption of $4-5.00. Ms. Bailey added that cost is before any rebates or incentives, which would help bring that total number down. Board member Moore asked what kind of feedback staff is receiving about the long windows for return on investment. Ms. Bailey said no one wants a 20-year ROI, especially with building ownership turnover. She added that part of staff’s conversation with the technical committee and the building owner community is about how can we make ROI a little bit more holistic, and not just a basic calculation because there are a lot more peripheral benefits. Business-as-usual improvements will happen with or without a BPS policy in place, as equipment at the ENERGY BOARD REGULAR MEETING end of its useful life is replaced with the lowest cost option. These replacements typically represent an improvement upon the efficiency of existing equipment and 5-8% of the total greenhouse gas reduction resulting from the proposed BPS policy is likely to occur in these buildings regardless of policy adoption. Ms. Bailey said she will be back at Energy Board in October ahead of their City Council presentation at their October 28 meeting. That presentation is expected to include the final BPS policy framework and alternatives to prioritize expanding incentive-based framework using 2050 funds. Board member Giovando asked what happens after the reduction targets are met. Ms. Bailey said the buildings must maintain (not lose) their efficiency year-over-year; this is in interim target on the way to 2050 community goals for a zero net-carbon community. ORGANIC CONTRACT & POWER SUPPLY AGREEMENT MEMO In this month’s meeting packet, the Board received a copy of the Organic Contract with its proposed redline changes. They are using that information to decide if they would like to write a memo in support of the contract extension. Mr. Tholl reiterated why these contracts are being updated, which is to update the language (bring it current), as well as extend the contracts which will send positive signals to bond markets. This supports long term energy transition goals of the four owner communities. Board members discussed the contracts, with extensive conversation around the 1% cap on community generation. For Fort Collins, that would equate to around 3.2 MW. Mr. Walker noted that Riverside Community Solar (currently the City’s only community generation point) is about 500kW, so there is quite a bit of room to expand should the City decide they would like to. He also reiterated that anything behind the meter, or customer owned, does not count toward the 1% cap. It’s important to leave the limit as part of the all requirements agreement, because it shows bond counsel that no individual community will abandon the other three, who have all invested in this partnership with each other, and suddenly pursue wholesale power through another avenue. Board member Canonico referenced language in the contract referring to good faith discussions if Fort Collins ever desired to exceed the 1% limit. Ms. Lewis-Molok said that language was retained and advised it is her interpretation that it means Platte River is willing to have the conversation should the need arise. Board members spent some time discussing redlines of the contract and opted to spend additional time at their upcoming work session to finalize a memo. Board member Thorstensen moved that he draft a memo in support of the Platte River Organic Contracts and Power Supply Agreements, with added context encouraging Council to remain prudent in evaluating the City’s future needs and goals. Board member Moore seconded the motion. Discussion: Chairperson Smith said he feels that the Energy Board owes the community the dedication of closely reviewing the contracts and proposed changes before making a sweeping recommendation. Board member Giovando said he trusts many of the City’s staff, but said it is important to remain cognizant if there are future changes that might shift the direction of the partnership outside of Fort Collins’ best ENERGY BOARD REGULAR MEETING interest. Vote on the motion: 6-0, with one absent. Board member Stainsby abstained. . BOARD MEMBER REPORTS Board member Moore said NCRES will have a presentation on embodied Carbon on August 26 at Odell Brewery. Chairperson Smith said he read an article recently about Sunrun testing a virtual power plant in Southern California with Southern California Edison, primarily to shave the peak load. About 1000 homes participated in it and it worked incredibly well. FUTURE AGENDA REVIEW The Board will spend their August Work Session finalizing memos for the 2024 IECC Code Updates and the Platte River contract extensions. In September, the Board will hear from Mr. Smith with an update about the 2024 Codes at City Council, they will receive an update on Our Climate Future strategic funding. ADJOURNMENT The Energy Board adjourned at 8:13 pm. Headline Copy Goes Here 09-11-25 September Meeting OCF Strategic Funding Plan- Energy Board Headline Copy Goes HereAgenda 2 •Our Climate Future Background •Strategic Funding Plan Overview •Revenue Projections •Allocation Criteria and Process •Next Moves Update •Next Steps Headline Copy Goes Here Background 3 Headline Copy Goes HereOur Climate Future Background 4 Purpose •Guide Fort Collins, Colorado toward a more sustainable future while focusing on the needs of its people. Goals •Reduce 2030 greenhouse gas emissions by 80% below 2005 baseline levels •Provide 100% renewable electricity by 2030 with grid and local sources •Achieve zero waste, or 100% landfill diversion, by 2030. Structure •13 Big Moves •Next Moves 2050 Tax •Approved 2023 •First Funds Collected 2024 Headline Copy Goes Here Strategic Funding Plan Overview 5 Headline Copy Goes HerePurpose and Deliverables 6 Purpose: Create a strategic guidance document including revenue projections, proposed funding allocations, and an implementation plan for Our Climate Future related investments. Key Deliverables: • Revenue Projections • Allocations • Next Moves Plan Timeframe: Q2 2025– Q1 2026 Headline Copy Goes HereBudget and Strategic Plan Timing Budgeting Strategic Funding Plan Council Election Council Onboarding and Priority Adoption Strategic Funding Plan Headline Copy Goes HereProject Plan 8 Phase I- Council Presentation Primary Deliverables •75% Draft for Council Review •Council Presentation Due Date •10/28 Council Work Session Phase II- Full Plan Primary Deliverables •Revenue Projections •Allocation Criteria and Process •Next moves Update Due Date •End of Q1 2026 Headline Copy Goes HereKey Questions 9 • What input or feedback does the Energy Board have related to development of an OCF Strategic Funding Plan? • What suggestions do you have to connect this plan to broader climate initiative context (PRPA resources, other partner initiatives, etc.) Headline Copy Goes Here Revenue Projections Headline Copy Goes HerePrimary Funding Stream Forecasts 11 Time Horizon- 15 Years Phase I- Council Presentation • 2050 Tax, Climate Portion • Remittance Fees from Disposable Bags • Utilities Funds for Energy Services Phase II- Full Plan Potential Additional Sources • 2050 Tax, Transit Portion • Community Capital Improvement Plan (If Passed in Nov.) • General Fund • Future Income Sources (Grants, Bonding, Etc.) Headline Copy Goes Here 12 Example Annual Funding Forecast * Please note that the numbers in this slide should be considered as placeholders, not final numbers. Headline Copy Goes Here Allocations Headline Copy Goes HereAllocation Approach 14 Align Allocations to Revenue Forecasts • Allocate according to projected revenues • Recommendations on the most strategic allocations • Incorporate OCF Big Moves and Council priorities Multiple time horizons • Short-term – address Council priorities, emerging needs • Mid-term – planning stability, multi-year efforts, bigger lifts • Long-term – ongoing efforts, saving for infrastructure, etc. Criteria & Process • Identify allowable uses for funds • Criteria for Mitigation, Resilience, and Equity impacts • Process for allocation recommendations Headline Copy Goes Here 15 Allowable UsesFunding Stream • Greenhouse gas and air pollution reduction • 100% renewable electricity • 2050 goal of community wide carbon neutrality 2050 Tax, Climate Portion • Waste reduction program • Mitigate plastic pollution • Reduce solid waste and litter Remittance Fees from Disposable Bags • Programs to assist customers/ provide incentives to reduce consumption or peak demand • Electricity and related services for consumers Utilities Funds for Energy Services Headline Copy Goes HereAllocation Criteria- Mitigation, Resilience, Equity 16 Why? •People at the center of OCF Work •Local impact (+/-) •Community Feedback Mitigation Greenhouse Gases, Renewable Energy, Air Quality Indicators, Diversion Rate Resilience The capacity to prepare our human and natural systems to respond and adapt to changes and disruptions of various scales that affect our ability to thrive. Equity Designing programs, policies, and systems to ensure identity is not a predictor of outcomes Headline Copy Goes Here 17 Big Move 6 – Annual Target Funding Allocations * Please note that the numbers in this slide should be considered as placeholders, not final numbers. Headline Copy Goes Here Next Moves Plan Headline Copy Goes Here Updates for Council Purpose and ConnectionTerminology Next Moves Plan - Background 19 Big Moves •Transformational Outcomes Pathways •Strategic Level Next Moves •Tactical Level • 2- Zero Waste Neighborhoods • 5- Live, Work, and Play Nearby • 6- Efficient, Emissions Free Buildings • 12- 100% Renewable Electricity • Communicate actions being taken on each Big Move • Provides work plan for staff • Tie actions to budgetary needs • Inform needs by revenue stream Headline Copy Goes Here 20 Big Move 6: Efficient, Emissions Free Buildings Everyone lives and works in healthy energy and water efficient buildings which transition to become emissions free. 6.3 Building Performance6.2 Building Electrification6.1 Building Construction Next Moves • Establish minimum performance standards for metro districts • Establish an energy performance path to zero carbon for new construction by 2030 • Provide stock plans for energy efficient, affordable housing developments Next Moves • Provide energy efficiency improvement programs for homes and businesses • Provide behavioral energy efficiency programs for homes and businesses • Provide financial mechanisms to support retrofit programs (e.g., Epic loans, CPACE) Next Moves • Provide natural gas electrification programs for homes and businesses • Support and expand local service providers through workforce education on electrification • Evaluate Utility electricity rate alignment with electrification Pathways * Please note that the Next Moves in this slide are not final or comprehensive and should serve as an example only Headline Copy Goes Here Next Steps Headline Copy Goes HereNext Steps 22 Key Upcoming Dates • 9/17 NRAB/AQAB Combined Meeting • 10/17 Work Session Materials Due • 10/28 Council Work Session Next Steps • Incorporate Feedback • Prepare for Council Presentation • Begin Discussions for Remaining big Moves Headline Copy Goes HereKey Questions 23 • What input or feedback does the Energy Board have related to development of an OCF Strategic Funding Plan? • What suggestions do you have to connect this plan to broader climate initiative context (PRPA resources, other partner initiatives, etc.)