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HomeMy WebLinkAboutNatural Resources Advisory Board - Minutes - 08/20/2008NATURAL RESOURCES ADVISORY BOARD Regular Meeting August 20, 2008 DATE: Wednesday, August 20, 2008 LOCATION: 215 N. Mason - Conference Room 1-A TIME: 6:OOpm For Reference: Alan Apt, NRAB Chair 221-9875 Ben Manvel, Council Liaison 217-1932 John Armstrong, Staff Liaison 416-2230 Board Members Present: Alan Apt, Phil Friedman, Linda Knowlton, Clint Skutchan, Heather Manier, Liz Pruessner Board Members Absent: Joe Piesman, Glen Colton Staff Present: Natural Resources Department: Alexis Hmielak, John Armstrong, John Stokes Call meeting to order Alan Apt called the meeting to order at 6:05 Introduction of Guests Dale Adamy of the Air Quality Advisory Board, Amy Randell of CAFR (Colorado Association for Recycling), Michele White of Nolte, Assoc., and Ann Hutchinson of Fort Collins Area Chamber of Commerce. Agenda Review None Public Comments Michele White addressed the NRAB and asked them to consider recommending a plastic bag ban in Fort Collins. • As support to her request she handed out a PowerPoint presentation describing how plastic bags impact the environment and are causing devastation in the oceans. She also stated several cities and countries and have banned or are considering banning plastic bags and would like to see Fort Collins also ban or tax plastic bags. • Alan Apt stated Fort Collins is currently looking at a trash study that includes recycling issues. He suggested Michelle also address the City Council with this issue at their September 2, meeting during the public comment period. • Phil Friedman mentioned there are three alternative grocery stores in Fort Collins who are very aware of this issue. He suggested Michele also approach the larger grocery stores and ask them to voluntarily do away with plastic bags. John Armstrong reported Climate Wise is trying to recruit major grocery stores in order to help them reduce, reuse and recycle, especially plastic and cardboard. John Stokes added that none of the experts we have worked with to design a better trash system suggested a plastic bag ban since there are other strategies that are more powerful to reduce the trash footprint in landfill. He agreed plastic is a nightmare, but if we were to pursue it, we will hold off until the trash services study is settled. Alan Apt thanked Michele for her input, but summarized that the NRAB will hold on this issue at this time. Review and Approval of July 16, 2008 Minutes: Liz Pruessner moved and Linda Knowlton seconded a motion to approve the minutes of the July 15, 2008, NRAB meeting Motion approved unanimously Northern Integrated Supply Project / Glade Reservoir Natural Resources Director, John Stokes updated the NRAB on the status of this project. • Alan Apt recapped that NRAB initially opposed the project. After they received the staff report in June, the NRAB stated they agreed with staff s concerns and were in favor of a regional approach and conservation of agricultural water. • John Stokes stated that in June, Marty Heffernan and other staff presented a dozen comment themes to Council. These comments have remained consistent throughout subsequent staff review and research. • Staff will go to the September 2, Council meeting with a summary of these comments and will seek endorsement from Council. He suggested the NRAB read the summary of their comments before the Council meeting. • Comment themes outline three areas of concern: o Source Water Quality • There is a possibility that Glade will be delivering water into Horsetooth Reservoir via a pipeline and degrade that water. • This will increase Fort Collins treatment costs $50 - $90 million. o Water Quality ■ When you reduce flows you reduce water quality and reduce dilution. This messes with the wastewater treatment parameters. • We are concerned we might have to install expensive extra wastewater treatment plants. o River Flows Biology/ecology/recreation/sediment deposition concerns Lower flows slow the river and drops sediment with fewer flushing flows. The channel would most likely narrow and change the profile of river which, in turn, will change flood flow conditions. This is a serious condition because the river would overflow its banks. 2 John Stokes stated that overall, we believe the EIS does a very poor job of analyzing potential impacts from NISP. We will be seeking a supplemental EIS. o They found many substantial errors such as using wrong data, didn't use available data or failed to use accepted industry standard of analyzing. o In general, we're going to be recommending to the Army Corp of Engineers that they go back and restudy several issues in a sufficient manner. Staff has done a lot of good science and data -based work along with a hired consulting team. o Council appropriated $375,000 to fund a Utilities study of the TOC issue, hire outside legal council, river aquatics, engineering and biology consultants. They also hired a lobbyist to get in front of elected officials and state and regulatory agencies to let them know we have serious concerns. The NRAB discussed John's summary and asked questions. • In answer to a question by Linda Knowlton about what are the chances the water will actually go into Horsetooth, John Stokes stated neither staff nor the proponents know. o The EIS didn't provide much operational information. Staff has requested a detailed operation plan so we'll know with more certainty if water goes into Horsetooth. o If the proponents do water exchanges instead of delivering water from Glade to Horsetooth that will solve many of our concerns right now. However, we think in the next 10-20 yrs the ability to do water exchanges will become limited as water rights are being converted to other uses. We don't think they've done enough to analyze that potential change. We think it's likely they won't have the capacity to exchange and will then have to put water into Horsetooth out of Glade Reservoir. We suggested the EIS has not addressed this future concern. • Linda Knowlton wondered if Fort Collins could buy enough water rights to avoid Glade Reservoir. o John Stokes stated Gary Wockner is chairing a subcommittee of the Water Board and is looking at how to reengineer water delivery out of the Poudre River to maintain flows. It is very complicated and very expensive. o This is a $426 million project to deliver 10,000 acre-feet of water. A potential roadblock could be getting water use changed in the Water Court. It has been done, but there is no guarantee. Fort Collins was the first city in the state to get a Recreation In -Channel Diversion right. • In answer to a question by Clint Skutchan if it would be possible for the Open Space Program to use those monies to get water rights, John Stokes stated yes, we can buy rights and the natural areas currently has some rights in a small portfolio. However, a senior water right is very expensive. • John Stokes stated the water treatment expense of $50490 million is a one-time cost plus an approximately $3+ million annual operational cost. o John explained a lot is out of our control because the City of Fort Collins is required by law to deliver clean water. If our water quality is diminished, we have to treat that water. o Fort Collins has great water. We are at the mouth of Poudre Canyon and have senior water rights. The water coming from the west slope to Horsetooth is low in TOC, so when the Poudre River is high in TOC, we can switch sources. This helps modulate treatment cost. Linda Knowlton asked if a permit for Glade Reservoir could be issued with a caveat they would never pump into Horsetooth. John Stokes stated it is an unknown. Clint wondered if the Army Corp weren't amenable to the City's criticisms, what happensthen. o John Stokes stated by law, the Army Corp has to read all the comments and respond. o The Corp has to make a decision if they want to fix the EIS and issue a final or go back to the drawing board and make a supplemental EIS and then put it out again for public comment. o John Stokes stated once the Corp issues a final statement, discussion is over. At that point they then build the project, unless they are successfully sued to stop if someone thinks the Corp didn't do their job properly. This is a very difficult thing to do. Heather Manier heard a statement that NISP is needed because 100,000 people are not getting their water needs met and wondered who these people were. o John Stokes stated NISP is basically for fixture water supply of various communities. Electric Supply Policy John Phelan and Patty Bigner from Fort Collins Utilities addressed the NRAB regarding the proposed Electric Energy Supply Policy (Energy Policy). • Patty Bigner gave background of the proposed Energy Policy. They have been working on it since last fall and are trying to stay in sync with the Climate Task force regarding the Climate Action plan. They are ready to get this done with implementation strategies. They are hoping for adoption of both plans during 2008. • The new plan will be a significant change from the way Utilities currently operates. It changes the thinking from kilowatts to carbon. • Last fall they started to revise the Energy Policy with a small subcommittee from the Electric Board. They also acted in conjunction with the Climate Task Force in order to keep everything connected. • They presented their findings to the Electric Board as a draft policy and are currently talking to people who are interested in what they've done and are soliciting feedback. • The draft energy policy goes to Council in September. • There will be public outreach after first Council work session. John Phelan stated the current policy goes back to a 2001 request from Council to the Electric Board to develop an Electric Energy Supply Policy — first time to have such a policy. ■ At the end of 2003, they presented it to Council. It is a strategic plan for DSM and they asked a 2% rate increase — first time we have dedicated funds ■ A Strategic Plan for Demand Side Management (DSM) of energy efficiency was adopted along with a rate ordinance authorizing a rate increase for the energy policy, energy efficiency programs and renewable energy. ■ A group was formed as a sub -committee of the Electric Board to update the Energy Policy in 2007. It overlapped with the Climate Task Force members and studied the political, technological and social trends and determined 3 interrelated goals they wanted to capture in the policy. 1. Reliability 2. Community carbon footprint 3. Local economic vitality • There are 3 environmental policies currently under discussion with carbon as the link between them. Next year they will also update the land use plan and transportation plan. 1. Climate Action Plan 2. Trash Services Study 3. Electric Energy Policy • From 1992 to 2007 Fort Collins has experienced a 44% growth in population that is using 75% more energy with a 115% higher peak demand. This is an unsustainable pattern. John Phelan presented a comparative review of old energy policy and proposed policy. • Vision o Current policy has no formal vision articulated. It only generally guides the utility into the future. o Proposed policy — has an aggressive vision = "To serve the community with highly reliable, carbon neutral electric service, guided by an ethic of sustainable, innovative and responsible management. " • Goals o Current policy has more "themes" than goals. o Proposed policy — has more structure - with goal/description of what it means with metric objectives. o They looked at the current political, environmental, economic, social and technology trends and focused on three major goals: 1. To provide highly reliable electric service. ■ The proposed plan includes o Shifting from a growth to a maintenance utility. o Using actual reliability statistics on ASAI , CAIDI, SAIFI o Construction standards and materials specs. o Asset management plan o Smart grid roadmap by end of 2009— linked to climate plan o Reduce peak demands — a reliability improvement — so we could manage 15 — 30 megawatts of the load in response to the need. • In 2007 service was 99.9965% reliable in Fort Collins. • Load management targets — able to reduce demand in response to peak periods. o 5% of 2005 peak by 2015 and 10% of 2005 peak by 2020 o Maintain a skilled and qualified workforce o Coordinate with PRPA 2. To support the community's carbon emissions goal of reducing the City's carbon footprint 20% below 2005 levels by 2020 and 80% by 2050. 3. To enhance economic vitality Environment o Current policy ■ The energy and demand production goals in terms of per -capita numbers to reflect the anticipated growth of Fort Collins. • Reduce per capita electric consumption 20% from the baseline of 2002 by the year 2012. • Generic language about implementing community awareness • Increased renewables to 2% in 2004 and 15% by 2017 o Proposed policy (linked with Climate Plan) ■ Need to develop a carbon methodology be used as the primary metric rather than energy so all efficiencies would be accounted for on a carbon basis. • City carbon goal of 20% below 2005 levels by 2020 and 80% below by 2050. • Efficiencies would reduce 1 % of energy consumption on an on -going basis. ■ After the effects of efficiency program, pricing changes, smart grid meeting RPS standards required by state and providing the voluntary green power purchases, this plan will use renewables to reach the 20% 2005. • Green building • RD&D • Sustainability Utility operations 2007 Demand Side Program highlights o Were able to save 8,200 megawatt -hours at cost of 1.3 cents per kilowatt-hour o These savings are also cumulative. o However, the per capita consumption and peak demand is now higher. Renewable energy results o Initiated voluntary wind power program in 1998 o In 2004 we added a rate based component. 0 2006-2007 — doubled request from PRPA Economic Vitality o Old policy had nothing about economic vitality. It was about rates. o Proposed policy ■ Has objectives around financial health of Fort Collins Utilities. ■ Maintain regionally competitive rates that promote energy efficiency and conservation ■ Maintain programs and services that help customers maintain affordable energy bills ■ Promote the benefits of clean energy solutions to existing and potential businesses. • Rates o Old focus was on "bills" not "rates". o There was no rate increase in 2007 — Fort Collins historically has lower rates than Excel. o New policy focuses on bills, because even though rates will be increasing soon, bills could actually go down with conservation. ■ Metrics o Old policy was keep on doing things from the past o Proposed policy will have more valuable metrics o Carbon based energy policy— what does a carbon goal look like? This is an inventory -based approach o Energy baseline is 2005 = 1,250,000 tons carbon 0 20% reduction is the 2020 goal = 1,000,000 tons o With projected growth rate of Fort Collins of 1-1/2 % per year we need 650,000 tons in 2020 — a very daunting challenge. ■ Fort Collins Utilities has had visionary thinking from the beginning: o Formation of the utility in the first place in 1935 o Decision to go completely underground 1968 when other utilities had not. o Formation of PRPA inl973 o Electric energy policy 2003 0 21s` century utility initiative 2008 —carbon based The NRAB discussed John Phelan's presentation and asked questions. • Linda Knowlton asked how residences will be challenged/forced to conserve. o John Phelan pointed out there will be changes to the rate structure, especially with Smart Meters increasing prices during peak demand. o The technology to do this is developing, however. Utilities wants to also use smart meters for water in addition to electricity. This has huge potential but will take time to develop it. Linda agreed that having tiered rates in electricity will encourage behavior change. o Patty Bigner pointed out there are fewer alternatives to using electricity than water. Not watering your lawn to save on your water bill is different than not heating your house. Heating your house is critical. ■ Clint Skutchan questioned whether the public will accept the premise to reduce carbon emissions because carbon is hard to understand. He cautioned the Utilities department about moving forward with a program that makes the assumption the public would care about carbon reduction. Instead, he suggested focusing on cost, since people understand when it hits them in the pocketbook. o Phil Friedman suggested removing the word carbon and focusing on helping the community and utilities and incur cost savings. o John Phelan agreed efficiency and conservation will result in a net savings for the community over time. However, the renewables are trickier because they have a higher cost than traditional sources. o Patty Bigner stated when Utilities talks to customers about conservation they talk about comfort and value to get more participation, plus incentives and rebates. o Alan Apt stated properly insulating homes should save energy. ■ Heather Manier questioned the impact of people changing over regular TVs for plasma TVs that take more energy. o John Phelan agreed the number of things "plugged in" is growing. Reducing energy consumption reduces overall carbon footprint. Demand energy affects Utilities management of energy. ■ Alan apt stated Council is concerned about energy use in the coming years. o John Phelan stated program development is rolling out energy savings programs and the goal is to get participation in them. The policy is only one piece of their program. There is an ongoing series of decisions being made to flesh out the details. ■ Patty Bigner stated in the next 4 years we need capacity within our community to do this work. Currently, we don't have enough people to do the work. This is a huge challenge that they are working on to solve in the next few years. • Linda Knowlton asked how the Utilities Department works with PRPA and what are their goals. o Patty Bigner explained we all will be responsible for the emissions from our energy demand. The Governor's Energy Office stated municipalities must collaborate to achieve the same regulations and there will be legislation soon about this. Fort Collins has a running start. In order to get to the 2020 or 2050 goals, we're going to need technology/public/legislation to come along. o John Phelan stated PRPA has made changes with goals for efficiency. Fort Collins is also working to with a regional coalition of power companies and regional municipalities. Regarding a question about smart meters from Phil Friedman, Patty Bigner stated that prior to full roll -out of smart meter technology, residents could use automated meters, installed on a voluntary basis. However, Utilities is asking Council to authorize funds for a smart meter with more functions. John Phelan stated it makes more sense to rollout quicker so payback is sooner. Liz Pruessner asked what are "dispatchable renewables." — John Phelan stated this implies having some storage and the ability to manage them. Patty stated there are technical integration problems with renewables. Regarding carbon vs. per capita methodology, Clint asked if there are models out there Utilities can refer to see if their plan is workable and if there are economic factors to enhance or inhibit what they are trying to do. There are too many unknowns and Utilities needs to have realistic goals. If we fall short, it would be a negative to the public. o John Phelan stated this is a very dynamic field right now with rigorous tools to calculate emissions inventories. They will have to come up with the framework and keep it current with a changing regulatory environment. Economically, carbon prices on the market are different and not transferable. No apples to apples comparison. o Patty Bigner stated we don't have a choice to not meet the goal. The state of Colorado and Fort Collins City Council have said we have to reach this goal. o Clint also suggested they should give exact examples of what citizens must to do help reach this goal. ■ John Phelan stated their programs have a variety of choices for usage. ■ There are also a lot of price increases coming, independent of this policy such as the cost of coal and transportation. Council will have to decide what to do over what time frame. New Business ■ Clint Skutchan asked the NRAB to review the previous discussion of having a sustainability sub -committee since, in his opinion, the NRAB is already performing that function. Alan Apt will put it on a future agenda. Announcements Alan Apt announced the Climate Plan update will be presented at the August 25 Council work session. Council Six Month Planning Calendar ■ Alan Apt announced he had not heard back from Parks and Recreation regarding their use of herbicides, etc. and will investigate. o John Armstrong stated Carol Webb, the City's Environmental Regulatory Manager is compiling a city-wide report that addresses that issue. She knows the NRAB is interested in a report and he will contact her when to expect the report. The group discussed possible topics for future board meetings. Other business John Armstrong discussed a few housekeeping items: • Regarding the process of motions and whether the board needs to vote on a full motion or substantive piece, John talked to the Assistant City Attorney. The recommendation is to not leave the meeting without a fully formed motion. John stated he would be willing to type and project the motions on the screen as the motion is being drafted so all can see and do a final vote. • City Council wants to know each board member's occupation as it begins the annual recruitment process. Please email John Armstrong your occupation. Adjourn Clint Skutchan moved and Liz Pruessner seconded a motion to adjourn. 0 The meeting was adjourned at 8:45 Submitted by Alexis Hmielak Administrative Secretary I J, ^� Approved by the Board on 2008 i Signed Administrative Secretary I Date 10