HomeMy WebLinkAboutAir Quality Advisory Board - Minutes - 08/18/2008AIR QUALITY ADVISORY BOARD
REGULAR MEETING MINUTES
DATE: Monday, August 18, 2008
LOCATION: 215 N. Mason Conference room 1-A
TIME: 5:30 -8:00 P.M.
Dinner is served starting at 5:15
For Reference: Eric Levine, Chair - 493-6341
David Roy, Council Liaison - 407-7393
Brian Woodruff, Staff Liaison - 221-6604
Board Members Present: Eric Levine, Kip Carrico, Nancy York, Dave Dietrich, Dennis
Georg, Katrina Winbom, Dale Adamy
Board Members absent:
Staff Present: Alexis Hmielak, Brian Woodruff
Eric Levine called the meeting to order at 5:35
Public input
None
Electric Energy Policy
Patty Bigner and John Phelan from Utilities Customer and Employee Relations department
addressed the AQAB regarding revised Electric Energy Policy. This is a near -final draft of a
revised policy that will be presented at the September 23, Council work session and then at a
regular Council meeting on October 21. Also present was John Morse, Chairman of the Fort
Collins Electric Board.
As background, Patty Bigner stated the 2003 Energy Policy has been a good policy for the last
four years with guidance and funding to reduce peak load and maintain reliability. Fort Collins
Utilities normally reviews their major energy policy every 4-5 years. In addition, the climate and
the energy industry has been changing and it would be good to have an energy policy that
reflects that change.
• Last fall they started to revise the Fort Collins 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.
• There are lots of opinions and Patty Bigner expects much conversation about Renewable
Energy Credits [RECs].
• They have a scheduled agenda item with Council September 9, to talk about energy
efficiencies,
• The current review process is a close collaboration between the Electric board and staff.
John Phelan made a presentation of the existing energy policy, the proposed energy policy and
where we are at meeting our goals.
• The original Electric Energy Supply Policy came from a City Council request to the Electric
Board and was formally adopted in 2003.
o 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.
■ 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 — 2050 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 mews 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 Actual reliability statistics on ASAI , CAIDI, SAIFI
o Construction standards and materials specs.
o Asset management plan
o Smart grid roadmap — 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
0 5% of 2005 peak by 2015
0 10% of 2005 peak by 2020
o 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
■ Increase renewables to 2% in 2004 and 15% by 2017
o Proposed policy (linked with Climate Plan)
■ Develop a methodology for carbon to 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 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 Focus is on "bills" not "rates".
o No rate increase in 2007 but 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
Carbon based energy policy— what does a carbon goal look like?
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-'/z % 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 ofPRPA in1973
o Electric energy policy 2003
0 21 s` century utility initiative 2008 —carbon based
The AQAB discussed John Phelan's presentation
■ In answer to a question by Dale Adamy asking if Utilities are going to revise building codes
to encourage renewables, John Phelan stated he didn't think there are any code restrictions
for owners doing renewable energy.
• Nancy York stated developers in her neighborhood are scraping off houses and building
larger ones. She wondered about the difference in carbon footprint and energy consumption
of a smaller house vs. larger house and whether there could be a requirement to not exceed
consumption of the smaller house.
o John Phelan stated the green building efforts of the city are looking at tradeoffs like
these in addition to standards vs. volunteer programs. The Energy Policy includes a
statement to promote green building. Historically Utilities' role has been to provide
incentives for developers to go above and beyond code on the energy side.
o Patty Bigner added that it's not just the size of the home but what's in the home. You
can build efficiently and insulate but you then need to manage energy use.
• Per -capita energy use has been a volatile indicator, because the Planning Department has re -
estimated the Population of Fort Collins to be 130,000, down from the previous estimate of
140,000. But even with the old per capita numbers, our energy demand has increoed
substantially. He also stated we have very low electric rates compared to other markets.
o Eric Levine wondered if the per capita numbers could be used as a predictive tool.
John Phelan agreed.
In answer to a question by Dave Dietrich, John stated Fort Collins' energy usage is
approximately 1/3 industrial— 1/3 commercial - 1/3 residential.
Brian Woodruff asked John Phelan what questions staff would ask the Council to give
direction on at the September 23 work session.
o Patty Bigner stated it was hard to answer because they are building on each session
with Council. Next they will talk about the climate plan and link it to the energy
policy. Then they're going to talk about energy efficiency, how to develop a policy
with a renewable portfolio standard, energy efficiency and RECs. The goal is to
understand what the energy sector can do for us. In the middle of September they
will try to figure out where we are and then come up with the questions.
o We have made some major changes to the policy. We added economic vitality,
moved to meeting the State's RPF instead of having a renewable energy RPF and
doing whatever else we need to achieve our carbon reduction goals.
o John Phelan added they want input on smart grids and pricing.
o Patty stated a big component is affordability and the impact on low income residents.
• John Phelan pointed out the public is not getting feedback on their energy usage. They
would like to use smart meters that would open up more rate options. However, since that
technology won't be in place soon, tiered metering could be implemented right away.
o Dennis George reported some hotels in Europe have an electric meter in each room
and charge the guest for the electricity used.
■ Eric Levine stated the Climate Task Force discussed the possibility of having home usage
reported in the utility bills and the City offering some efficiency and conservation programs
available to the public.
■ Patty Bigner explained the rate based renewables have overtaken our voluntary program so
that in future we will need more renewable energy. There is much uncertainty about the
future of renewable energy right now so that's where we need flexibility. Council has the
tough decision of where are we going and how will we get there.
■ In answer to a question from Nancy York, John Phelan explained that smart metering is a
built in two-way communications system so we can understand individual use. One of its
benefits is to tell people what their current bill is so you can adjust your energy usage
accordingly. It also has automated metering infrastructure, remote turn ons and offs, outage
management, etc. Fort Collins currently does not have a strategic plan for a smart meter roll
out but once we figure out what to put in we will do it as quickly as we can.
o Patty added that a lot of this is still conceptual and that they also want to have the
smart meters also meter water. This will be a big project.
o Eric pointed out the state of Alabama is currently installing smart meters.
■ Brian Woodruff pointed out the AQAB can give input to John and Patty at this meeting about
what the AQAB thinks they should communicate to Council prior to the September work
session.
■ Nancy York suggested high consuming households should have the smart -meter feedback
sooner then than lower -consumption customers. She also suggested low income households
need more research done as to their energy usage since they may have less insulation, more
people living in the house resulting in possible higher usage.'
■ In answer to a question by Dave Dietrich, Patty Bigner reported FC Utilities needs more
people, more contractors to do the energy efficiency upgrades and money for research and to
purchase technology.
■ Dave stated one thing to stress to Council is that the energy policy in the US has to change
now. Council needs to be aggressive and immediate on this decision.
o Greg McMaster added the goal should be aggressive with built in overshooting up
front. Council will have different members over time and the goal needs to be set and
urgent now.
o Patty reported the Denver Energy Office is talking about these issues and it will take
some big technology changes to get us where we need to go. We need to do things
that make sense now so we have flexibility and going in right direction.
o Eric Levine reiterated an aggressive approach to energy reduction is necessary and
the Climate Task Force also recommended this.
o Katrina added her support of aggressive goals and elimination of old school thinking.
• Patty Bigner stated they are adding more renewables to the grid and anticipates solar to be
added soon.
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■ John Phelan stated currently there is no agreed upon way to value what exactly are carbon
offsets and RECs. Patty anticipates the next City administration will address this.
■ John pointed out that all electricity use is indirect emissions. Direct emissions happen at the
power plant and that's where the reductions need to happen.
■ Dale Adamy made the following suggestions how to be more aggressive:
o Increase the rate ordinance from 2% increase to a larger number.
o Encourage more local ordinances to encourage more renewables.
o Reduce RECs and offset those with local renewables. We're paying more for RECs
than local electricity. Encourage local and get away from RECS
• Nancy York stressed the City of Fort Collins should lead by example and have a competition
between buildings to reduce and conserve energy. ,This would also train employees to take
home those habits.
o Patty Bigner pointed out the City has joined ClimateWise, is looking at
environmental goals and that energy management is becoming more of a priority.
There is also an energy reduction challenge currently going on and, as a result, the
Utilities building had a 15% reduction over 3 months. There is also a challenge to
this building and city hall.
Ozone Control Plan Update
Lucinda Smith reviewed recent developments in the ozone SIP planning process and gave an
overview of where the ozone process is now.
■ Lucinda reminded the AQAB that at their May meeting they discussed the emissions
program recommendations. Subsequently, that recommendation was printed out and put on
table at an MPO meeting in July. At that time the MPO was asked to make a
recommendation on the IM program, but did not because the RAQC said more information
would be forthcoming.
' Since May, a lot has been done with the consultants and at the state level.
o They recently released a draft Ozone Plan that can be found on the
www.ozoneaware.com website. This plan has been backed up by several kinds of
base case modeling.
■ The photochemical modeling for the 2006 base case met all EPA's criterasi, but
generally it tended to underpredict ozone.
■ For the 2010 base case, the modeling factos in the 2010 benefit of existing
programs like motor vehicle emission standards and fuel volatility limitations,
etc., and projects ozone levels in 2010.
o Projections showed a minimal level of compliance without adding new
standards.
o The Fort Collins West site was very close to the margin of safety, but still
needs additional strategies and it projects a reduction from 86ppb currently
to 84.9 in 2010.
In answer to a question by Katrina Winborn, Lucinda stated that 2/3 of the ozone
comes from background concentration at the monitors and cannot be altered
through local control strategies. That only leaves 1/3 that can be addressed by
reduction methods.
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■ Sensitivity modeling took categories of emissions and tried to get a sense what
types of reductions would get the best benefit — VOC and NOx reductions are
helpful.
■ Lucinda stated she doesn't know what process the RAQC and the Health
Department used consider the sensitivity modeling results to decide which to use
in the ozone plan.
Lucinda gave the AQAB a handout of the updated strategies that are in the plan.
o Proposed Measures for federally -enforceable State Implementation Plan (SIP).
■ Trying to get to compliance of the current plan with existing standards
■ On -Road
o Has more stringent I/M cutpoints
o Mandatory gasoline volatility limitation for the North Front Range
■ Oil and Gas
o Increase condensate tank control to 95%.
o Pneumatic valves controls
o Applying general oil and gas controls beyond the Denver area to the whole
Front Range
o Air pollution permitting and what is/not exempt
o Requires reasonably available control technology to be applied for entire
non -attainment area.
■ Lucinda reminded the AQAB that Governor Ritter made a clear direction to the
state to look ahead and make progress on the new standard by reducing emissions
below current standards.
o Proposed Measures that will be adopted and enforced as state -only measures
• Add I/M program to the North Front Range
■ Continue mandatory high emitter program in Denver area.
■ Tighten collector plate requirement for older vehicles.
■ Increase condensate tank control (95%)
■ Broader statewide oil and gas regulations on internal combustion engines.
o Potential strategies requiring additional evaluation for near -term plan/SIP amendment
■ Things not currently in ozone plan but RAQC interested in adding as more
stringent standard.
■ Ozone fuels strategies
• Federal reformulated gasoline
• Eliminate ethanol waiver
■ Statewide oil & gas regulations for new condensate tanks and pneumatic valves
■ Emission controls on large NOx sources
■ California paints/solvents/consumer products rule.
Lucinda pointed out that these are the measures currently being proposed. The oil and gas
companies attended the last MPO meeting and rasied questions about the modeling and the
benefits of proposed strategies. As a result, the North Front Range MPO stated they said we
don't have enough info and deferred a decision to next meeting on September 4. Ben
Manvel encouraged them to reach a decision at least on IM program because the process is
moving forward.
The next steps
o August 20, the RAQC has meeting for public input on strategies
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o August 21, there is a briefing the Air Quality Control commission to update them on
the status of the SIP
o September 4, the NFR MPO to provide input on control strategies. Their options are
to agree, not agree or say they don't have enough information and don't decide.
o Lucinda encouraged the AQAB to give the North Front Range MPO a
recommendation that, at minimum, these strategies are needed because they are
getting some pressure from oil and gas to back away from this level of controls.
In answer to questions by Katrina Winborn and Dennis Georg, Lucinda stated there are only 2
items going before the MPO, not each of the individual strategies on the sheet she handed out:
o Do you support the suite of measures in the ozone plan (federal and state), and what
type of IM program do you want?
o If they agree with the steps, the draft ozone plan will be considered final, goes to the
Air Quality Control Commission and kicks off the public hearing process.
o If they oppose the proposals, it is unclear what will happen. Lucinda suspects,
however, the RAQC will still propose them to the Air Quality Control Commission
with a caveat saying the RAQC recommends them even though the NFR MPO does
not and it's left up to the Air Quality Control Commission, following a public
hearing, to decide what they want to put out in the draft plan.
As clarification, Brian Woodruff pointed out in the emission control strategies for ozone (the
first column on the handout — proposed measures for federally -enforceable state implementation
plan) is required for the implementation plan. The second column (proposed measures that will
be adopted and enforced as state -only measures) are additional measures. Brian wondered, if the
commission adopts the additional measures, what is the level of commitment they have to
actually carrying them out.
o Lucinda was also unclear what it means to include a state -only measure in the
unenforceable ozone plan. She thought they were going to develop the regulatory
language for the IM program as part of the Ozone Plan.
Dennis Georg moved and Nancy York seconded a motion that the Air Quality Advisory Board
encourages the North Front Range MPO to support the reasonable steps as presented in the 2008
Ozone Action Plan, both the SIP•measures and the State -only measures.
Motion approved unanimously
Nancy York asked about the emissions program
o Lucinda recapped the options:
o The Denver metro program is the I/M 240 dynamometer test for most vehicles
and includes 2 speed idle for 1981 and older vehicles plus remote sensing.
• Centralized test in large stations most likely done by Envirotest.
• The State of Colorado prefers the I/M 240 program because it delivers
more benefit with fewer false failures and catches more high emitting
vehicles.
o On -board diagnostic test —preferred by EPA
• Has remote downloading capabilities and is most convenient and may
be the program of the future.
• The state of Colorado does not really like this test. The state, however,
doesn't want two recommendations.
• There may be a coming requirement if Colorado institutes more
stringent gasoline fuel standards that EPA may also require an OBD
test.
• What may happen is: OBD for newer vehicles and I/M for older
vehicles.
• Lucinda pointed out the AQAB previously made a formal recommendation about the UM
program, preferring a program that would provide the best air quality benefit.
o The board agreed to let their previous recommendation stand and not make another
recommendation at this time.
• To answer a question from Katrina, Lucinda stated the MPO and RAQC and TAC are looking at
proposed Ozone Action Plan before September 18 and will later look at the additional action
strategies.
• Lucinda also felt it was regrettable these (potential future) strategies weren't modeled because it
would provide more information to move forward more quickly.
• Brian Woodruff will alert the AQAB when and where future NFR MPO meetings will be held.
Approval of July 22, 2008 Minutes
Kip Carrico moved and Dale Adamy seconded a motion to approve the July 22, 2008, Air
Quality Advisory minutes.
Motion approved unanimously
Trash Study
Kip Carrico previously emailed a draft AQAB recommendation regarding trash hauling. He will
revise and resend for group consensus at the September 15, 2008 meeting.
Prepare for September conversation with PDT Director
The group will email each other with questions for Jeff Scheick
Brief updates
Greg McMaster on West Nile Virus policy
o He printed out the August 3 — 9 trapping map.
o Culex mosquito numbers are low this year due to low temperatures and low precipitation.
o Low number of human cases and those contracted WNV outside the county.
o Virus index low and late — looking like good year.
o North and east Fort Collins have most mosquitoes.
o If they do spraying, they won't spray in most of the populace.
o WNV season is usually over the end of August— too late to spray.
o Researching how to improve the larvaciding program.
o Dennis Georg suggested focusing more on river and lakes and post alerts in Coloradoan
and electric bill.
o Some HOAs are spraying
• Eric Levine has not had a conversation with Wade Troxell on urban hens.
o Brian Woodruff reported a study had been done previously about air quality
issues from chickens and will make it available to the AQAB.
• AQAB recommendation letters on the City web site
o Brian reported they will be on fcgov.com soon.
• City Code amendments regarding cooperation with other boards
o Brian has an upcoming meeting with city attorney's office about this issue.
• Coloradoan weather -page changes
o Brian reported they have been altered to show ozone alert for today — yesterday's
air quality.
The ozone forecast is wide -range, made by meteorologist
• Nancy York stated that King Soopers at north College and Willox will be coming before
the Planning and Zoning Department to get two variances to build a gas station and pave
over wetlands. She encouraged members of the AQAB to attend this meeting.
Adjourn
Nancy York moved and Dave Dietrich seconded a motion to adjourn
Eric Levine adjourned the meeting at 8:55
Submitted by Alexis Hmielak
Administrative Secretary I
Approved by the Board on �/�/, �5 12008
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