Loading...
HomeMy WebLinkAboutEnergy Board - Minutes - 02/14/2019ENERGY BOARD REGULAR MEETING February 14, 2019 – 5:30 pm 222 Laporte Ave.; Colorado Room ENERGY BOARD MEETING | 02/14/2019 02/14/2019 ROLL CALL Board Members Present: Chairperson Nick Michell (remotely), Vice Chairperson Amanda Shores, John Fassler, Jeremy Giovando, Alan Braslau, Bill Becker, Dan Gould, Stacey Baumgarn, Krishna Karnamadakala Board Members Absent: none OTHERS PRESENT Staff Members Present: John Phelan, Christie Fredrickson, Tim McCollough, Cyril Vidergar, Crystal Schafii Platte River Power Authority: Paul Davis Members of the Public: Bill Althouse, Rick Coen, Sue McFadden, Michael Murray MEETING CALLED TO ORDER Vice Chairperson Shores called the meeting to order at 5:30 pm CITIZEN PARTICIPATION Bill Althouse said he hopes someone with the City of Fort Collins or Platte River Power Authority will consider consulting with someone with background and experience in Deployment Energy Systems. He encouraged staff and Board members to research DERMs (Distributed Energy Resource Management) and GridEdge. He believes these are the tools to help the City achieve renewable goals, as well as achieving high reliability at a low cost. APPROVAL OF MINUTES In preparation for the meeting, board members submitted amendments via email for the January 10, 2019 minutes. The minutes were approved as amended. ANNOUNCEMENTS & AGENDA CHANGES None STAFF REPORTS COLORADO SOLAR ENERGY INDUSTRIES ASSOCIATION UPDATE John Phelan, Energy Services Senior Manager The Colorado Solar Energy Industries Association will be rebranding to Colorado Solar and Storage Association (COSSA). Historically they have been focused on residential rooftop solar in the Denver metro area but have hired a new director who is initiating conversations to become much more active on a statewide basis. ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 02/14/2019 MICELLENEOUS STAFF REPORTS Mr. Phelan distributed copies of the Income Qualified Assistance Program (IQAP) newsletter to the Energy Board. Many board members were interested in receiving the newsletter regularly; Board support staff will pass along board members’ contact information so they can be added to the distribution list. Mr. Davis, Energy Solutions Manager with Platte River Power Authority, said Platte River recently signed a Power Purchase Agreement (PPA) with GCL New Energy and DEPCOM Power for 20 MW of solar- generated power and two megawatt-hours of battery storage. Starting in 2020, the project is expected to deliver 52,000 MW-hours of solar generation per year, and the battery is contracted to run one full charge cycle per day. Chairperson Michell asked if this project is rate based or community solar, Mr. Davis said, like all renewables in Platte River’s proposed wholesale rate design, it’s going to be an unbundled rate so the individual cities can make their own rate or program decisions. Mr. Phelan said staff is still working on the work plan to restructure the Green Energy Program so there is not a program design to share yet. Mr. Davis added there will be more information available once Platte River’s wholesale rate design is finalized. EPIC LOAN PROGRAM & BLOOMBERG UPDATE John Phelan, Energy Services Senior Manager (attachments available upon request) The EPIC Loan Program, which is not an acronym, but is rooted to the Energy Performance Improvement Certificate, hopes to simultaneously find solutions and optimization for: Documenting beneficial well-being and health outcomes through indoor air quality improvements from efficiency, implementing energy efficiency at scale, addressing underserved LMI (Low Moderate Income) residents due to rental split- incentive, effective implementation of on-bill financing, leveraging third party capital, demonstrating public-private partnerships, and driving innovation in local government. The Bloomberg Mayor’s challenge had nine winning cities, including two in Colorado: Fort Collins and Denver; this creates a massive potential for nationwide impact. Mr. Phelan reviewed the key principles in more detail of the Bloomberg project. Staff will work toward understanding the link between energy inefficient housing and health by establishing a research program with CSU. They hope to integrate the importance of health into energy efficiency programs and communications. To implement energy efficiency at scale, the goal is to increase a single project outcome and savings, scaling by a factor of 2x, 3x, 4x (etc.), while maintaining the quality of work. Addressing LMI residents requires defining the values of improved performance for all parties (property owners and tenants), identifying and engaging property owners, and streamlining every step so that the process is made easy for property owners to participate. Mr. Phelan noted that over 50% of the housing in Fort Collins is in rental, and that over 90% of LMI residents are renters. Vice Chairperson Shores asked what percentage of rentals in Fort Collins are occupied by students, and staff said they don’t have a solid number assigned to that. Board member Fassler said it’s a challenge, but it’s important to provide incentives and subsidies for efficiency retrofits for this demographic because the costs can be high. Effective implementing of on-bill financing requires coordination with City Staff in Billing, Finance, and ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 02/14/2019 Legal. Again, staff is working to streamline every step along the way to make it easy to participate. Leveraging third-party capital is very important, rather than relying on reserves for extended periods of time. Staff is designing an ongoing capital stack with grants, loans, and program-related investments. They will also work to identify local, regional, and national partners to develop new financial tools. Board member Braslau asked how this program works with the split incentive option for homeowners and tenants. Mr. Phelan said we have the capability to split utility services between the tenant and owner, and many landlords pay water and/or wastewater services, and the tenant pays for electricity. The loan appears on the owner’s bill, and the savings are realized on the tenant’s electricity bill. It is important in this program to demonstrate public-private partnerships with third-party capital providers, implementation efficiency trade allies, loan administration partners, Colorado State University, local non- profits, and the Colorado Energy Office. Finally, driving innovation in local government is the purpose of the Bloomberg Mayor’s Challenge. Board member Gould asked if there are tax credits or incentives available in conjunction with the program. Mr. Phelan said they are looking at some options that maybe could be tax free, but that is yet to be determined. Currently, EPIC Loans are up and running, but the City hasn’t done a lot of promotion yet due to lack of capital. Efficiency Works-Homes is the foundation of the delivery of these services. The opportunity of this program is to show the replicability and transferability to Platte River, the Colorado Energy Office, Environmental and Energy Study Institute (EESI), and Bloomberg Philanthropies. Chairperson Michell asked how staff will differentiate the incoming funding. Mr. Phelan said its part of the design process; it is a vexing challenge but not uncommon in the finance industry, so there are some software solutions available to them. BATTERY STORAGE PILOT & TOUR John Phelan, Energy Services Senior Manager (attachments available upon request) Objectives of the Distributed Battery Storage Pilot are broken up into four categories: Technical (Battery, Monitoring System, Communications, and Controls), Operational (Dispatchability, DE Control Integration), Utility Use Cases, and Customer Use Cases), Programmatic (Market Readiness, Benefit/Cost, and Incentive Sizing), and Policy (Carbon Benefits, Customer Benefits, and Community Benefits). This pilot was allotted $200,000 in the 2017-18 budget cycle but did not receive additional funding in the 2019-20 cycle. The project will demonstrate installation, monitoring and control of a single commercial- scale battery, located in utility-owned building (at 222 Laporte). It also tests the utility perspective of monitoring and control of distributed asset(s), as well as the integration with existing Intellisource (a platform used for demand response monitoring and control). Additionally, the pilot studies behavior of residential customers with batteries responding to Time of Day rate structure. In the future, the City can also collaborate with Platte River on demonstrating a residential-scale battery installation. In 2017, the pilot design, evaluation, and tactical plans were completed. In 2018, the commercial design development, procurement, and installation at the UAB were completed, as well as workshops on control capabilities. Looking ahead in 2019, commercial system installation will take place within Quarter 1, and in Quarter 2 the commercial battery will be commissioned. Staff will also begin testing use case with Spirae’s Wave Control platform. Board member Becker asked if the building is charged a regular commercial rate and what the demand ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 02/14/2019 charge is per kilowatt. Mr. Phelan said all City buildings are treated the same as a City of Fort Collins commercial customer, and the UAB is on the GS50 rate. There is an energy charge, a facility demand charge, and a coincident peak charge. There are physical constraints to storage uses. At the UAB, existing electrical configuration eliminates certain uses that may be likely for commercial users making a similar investment: serving as backup power to emergency loads during a grid-down scenario, and isolated microgrid operation (the solar cannot be used to charge the battery isolated from the grid, due to the wiring configuration and circuits supported by the existing ATS). Following the presentation, the Energy Board took a brief tour of the battery storage room, located inside the Utilities Administration Building at 222 Laporte Avenue. 2019 BOARD PRIORITES Mr. Phelan presented a list recapping what he thought the Board had expressed interest in prioritizing for the 2019 meeting year. He categorized topics that are in progress, topics that are pending, the Energy Policy and CAP updates, and the future distribution utility/long-term financial strategies. He asked the Board for feedback and prioritization on the list presented. Board member Baumgarn asked what the deadline or cycle is for updating the Energy Policy. Mr. Phelan said it is typically updated on a five-year cycle. Mr. McCollough added that all the City’s utilities are working to update their Capital Improvement Plans, and he suggested adding it to the “Pending” category of the Board’s list. Board member Braslau said discussion around demand management is missing, Mr. Phelan added it to the Energy Policy/CAP discussion category. Mr. McCollough added that a portion of that will be covered under the discussion with Platte River’s Integrated Resource Plan. Vice Chairperson Shores said it would be helpful to have collaborative, joint meeting with the Transportation Board. Chairperson Michell agreed, with a compelling agenda, a joint meeting with the Transportation board would be useful since there are several intersecting topics between the boards. Board member Braslau reminded the Board that there will be a Super Board meeting at the end of April concerned with the Built Environment with a showing of a film The Greenest Building. Chairperson Michell added that as the board has discussed before, he hopes some of the Board’s members (or City staff) will present educational items covering their personal areas of expertise. Board member Braslau said the educational items would be suitable for the Board’s scheduled work sessions. BOARD MEMBER REPORTS Board member Braslau said after last month’s presentation on the Police Regional Training Center he and Susan McFaddin met with City staff to explain our concerns that were taken into account in the final proposed ordinance. He then attended the City Council meeting and spoke in support of staff’s request for a partial waiver of LEED Gold certification, and the ordinance was approved by Council. Board member Baumgarn mentioned two conferences/symposiums scheduled in April (COSEIA, Energy Transitions Symposium). Mr. McCollough said the City may be able to contribute registration costs; staff will be in touch with interested Board members. Mr. Baumgarn also mentioned that Colorado State University is hosting a Lunch & Learn on April 4, celebrating 10 Years of Solar on the CSU campus. ENERGY BOARD REGULAR MEETING ENERGY BOARD MEETING | 02/14/2019 FUTURE AGENDA REVIEW Mr. Phelan will assume the role of the Board’s staff liaison beginning in March. Board member Fassler will host a brief workshop on the Passif House standard at the Board’s April workshop. In March, the Board is scheduled to attend a tour of Rawhide Energy Station. At the regular meeting on March 14, Mr. Smith’s Quarterly Financial Report will be delivered as a Board Packet item only, but Mr. Smith will be present at the beginning of the meeting for questions. ADJOURNMENT The Energy Board adjourned at 7:34 pm