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HomeMy WebLinkAboutEnergy Board - Minutes - 10/03/2013Energy Board Meeting Minutes October 3, 2013 1 Fort Collins Utilities Energy Board Minutes Thursday, October 3, 2013 Energy Board Chairperson City Council Liaison Greg Behm, 226-6161 Ross Cunniff, 420-7398 Energy Board Vice Chairperson Staff Liaison Peter O’Neill, 288-4562 Steve Catanach, 416-2622 Roll Call Board Present Chairperson Greg Behm, Vice Chairperson Peter O’Neill, Board Members Stacey Baumgarn, Nick Michell, Peggy Plate, Margaret Moore, Britt Kronkosky, and John Graham Board Absent Board Members Barrett Rothe Staff Present Steve Catanach, Lisa Rosintoski, John Phelan, Lucinda Smith, Norm Weaver, Dan Weinheimer, and Harriet Davis Guests James Newcomb (RMI), Coreina Chan (RMI), Jamie Mandel (RMI), Lena Hansen (RMI), Tom Moore (Air Quality Advisory Board), and Rick Coen Meeting Convened Chairperson Behm called the meeting to order at 5:31 p.m. Public Comment Board Member Baumgarn read an e-mail from Carol Dollard, Colorado State University (CSU) Energy Engineer. This e-mail was submitted to Fort Collins Utilities staff. Ms. Dollard expressed her views on the lottery system for the Fort Collins Solar Program. She feels Fort Collins Utilities should have chosen a different method for selecting projects for the program. * Please note this e-mail expresses Ms. Dollard’s personal views, not the views of CSU. Approval of September 5, 2013 Minutes Board Member Baumgarn moved to approve the minutes of the September 5, 2013 meeting with corrections as outlined below. Board Member Moore seconded the motion. Vote on the motion: Yeas: Baumgarn, Behm, Kronkosky, Michell, Moore, O’Neill, and Plate. Nays: None. Vote on the motion: It passed unanimously. The September minutes will be revised with the following changes:  Revised the first sentence in the second motion discussion on page 4: “A board member feels that ratepayers should not be burdened with extra costs associated with new development.”  Corrected the word “verses” to “versus” in the “Highlights from the presentation” section on page 5. Energy Board Meeting Minutes October 3, 2013 2  Revised the first sentence on the top of page 7 (Reason for the nay votes/Board Member Kronkosky): “He would like to see data on inadvertent activation of the systems and the associated water damage.” ** Board Member Graham abstained due to his absence at the September meeting. Staff Reports Energy Services Manager John Phelan gave an update on the Fort Collins Solar Program (FCSP). The first application period ended September 22 and approximately 300 percent of the requested capacity was received. Letters of intent were also received for Round Two. A lottery was held to select projects. These projects will be entered into a review phase. Most of the projects not selected in Round One will resubmit in Round Two. Mr. Phelan also gave an update on the planning and zoning activities regarding the program. Zoning does not address solar in general. The land use code needs to be reviewed regarding solar issues. This will be discussed at a Planning and Zoning Board Work Session. Highlights from the discussion:  A board member inquired if the pricing will be adjusted. Mr. Phelan stated the pricing will remain the same.  A board member asked if staff has considered asking City Council for more money for the program. Light and Power Operations Manager Steve Catanach stated Utilities staff will discuss this option with the City Manager.  A board member inquired as to when the winners will be announced. Mr. Phelan stated the winners will be announced in 3-4 weeks after the agreements are signed.  A board member inquired if the projects can go forward without being a winner from the list. Mr. Phelan these projects cannot go forward under the Solar Purchase Program; however, they have the option to move forward with different financing options. Rocky Mountain Institute (RMI) “Stepping Up” Paper Discussion (Attachments available upon request). James Newcomb with RMI presented information on this item. RMI staff members Coreina Chan, Jamie Mandel, and Lena Hansen were also available to answer questions. The board members were provided with a copy of RMI’s report, “Stepping Up: Benefits and Cost of Accelerating Fort Collins’ Energy and Climate Goals.” Background This report was provided to offer a non-partisan framework for thinking about the community’s full potential for efficiency and renewable energy supply. It also provides a foundation for the Energy Board and City Council to move forward with reassessment of the community’s climate action goals. This information is timely because the City of Fort Collins is reviewing its climate goals. Analysis Approach – Two Scenarios  Business as usual – provides a baseline for what would happen without new goals and policies, but with existing programs in place  Accelerated – assesses what is possible and the impact of a new energy strategy focused on local investment in clean energy sources. The analysis approach focuses on three questions: Energy Board Meeting Minutes October 3, 2013 3  How much can building efficiency be improved?  How much of Fort Collins’ electricity supply can be derived from clean local resources?  How much can the city reduce fossil fuel use from transportation? Assumptions  Based on currently available technologies  Industry-accepted cost projections  Incorporates implementation rates observed in best-in-class programs  Customized to Fort Collins’ infrastructure and demographics Mr. Newcomb provided a graph showing Fort Collins’ energy use today. 95 percent of Fort Collins’ energy comes from fossil fuels and approximately 50 percent of carbon emissions come from coal. Key Findings: Buildings  31 percent building energy reduction through improved efficiency  2.4 percent per year equivalent energy savings  $110 million in net benefit The growth rate of Fort Collins is approximately three times the national average and this has an impact on energy use. RMI believes Fort Collins could achieve a 31 percent improvement in building energy efficiency by 2030. This could be achieved through implementing cost-effective conventional efficiency technologies, improving controls and behavior across building stock, employing integrative design for existing and new buildings, and engaging industry to improve stock. Mr. Newcomb provided graphs showing the cost to conserve energy versus the cost of buying energy. He noted investments in efficiency are more cost-effective than investments in generation. Potential Enablers  Implement new approaches to increase motivation and enthusiasm  Tailor and phase programs to specific market segments and leverage points  New financing solutions (on-bill repayment)  Build partnerships with broader region  Create a highly trained, efficient work force Key Findings: Electricity Fort Collins’ electricity is heavily dependent on coal; however, there are emerging opportunities for solar and wind sources:  100 percent net fossil fuel reduction  25 percent local, distributed resources/45 percent wind  19 percent higher total costs to 2030 Mr. Newcomb provided graphs showing business-as-usual scenarios versus accelerated scenarios for various portfolios. Fort Collins’ electricity supply portfolio could shift significantly. He also provided a graph showing solar deployment relative to leaders (Gainesville, Florida and Germany). Balance of system cost reductions can lower the price of solar photo-voltaic (PV). In assessing the costs, there could be a 19 percent increase or a 15 percent reduction in the cost of electricity if evaluated through 2050. Potential Enablers  Implement new customer adoption techniques to increase motivation and enthusiasm Energy Board Meeting Minutes October 3, 2013 4  Drive down distributed resources’ costs and provide new solutions to financing issues  Assess distributed resources’ benefits and costs  Support the integration of flexible resources including smart grid, demand response, and electric vehicles  Enhance collaborations with Platte River Power Authority (PRPA) Key Findings: Transportation Approximately 1/3 of Fort Collins’ energy use is attributed to transportation. RMI believes Fort Collins could achieve a 48 percent reduction in consumption of gasoline and diesel. This would translate to a $480 million fuel cost and avoided maintenance savings. Mr. Newcomb noted efficient vehicles are increasingly cost competitive compared with gasoline-powered vehicles. Potential Enablers  Double down on all driving-less tactics  Implement new approaches to increase customers’ motivation through education and outreach  Incentivize the purchase of electric vehicles  Find alternative methods of meeting long-range transportation needs Summary of Key Findings  The accelerated scenario results in a net benefit of $165 million for the community, while reducing CO2 emissions by 15 million metric tons.  Local investment in efficiency, distributed solar, smart grid, and other local energy assets would be higher by $30 million per year  400-500 jobs could be generated over the period from 2013-2030  Accelerate carbon goals by 20 years Mr. Newcomb provided a graph showing CO2 emission implications of the accelerated scenario. This could result in an 80 percent reduction from 2005 levels. Highlights from the discussion:  A board member asked for further clarification on what is included in the measured benefits. Ms. Chan stated the benefits could be broken down for the three sectors (buildings, electricity, and transportation). These benefits include energy savings for saved builds; monetary differences for electricity; potential cost of carbon; reduced fuel used; and reduced maintenance costs.  The board members and staff discussed communicating the cost of carbon to City Council.  A board member asked about local investments and if these are considered in the analysis. Mr. Newcomb stated local investments were not considered.  A board member inquired if there is a document that outlines sources of possible investment dollars. Mr. Newcomb stated this depends on the business model; however, any source could be tapped (the City, the Utility, or individuals). There could also be interest from PRPA.  The board members discussed wind investments versus solar investments.  A board member inquired about investment tax credits and if these are available to municipalities. Mr. Catanach stated these are only available to investor-owned utilities; however, this fact does not alter the analysis provided by RMI.  A board member asked about carbon reduction related to electric vehicles and if the benefit is ramped up for electric vehicles. Ms. Hansen stated RMI looked at carbon emissions from the electricity sector as a whole since electric vehicles increase the electric load. RMI also Energy Board Meeting Minutes October 3, 2013 5 looked at the supply mix in regards to electric vehicles when factoring this into their analysis.  A board member inquired about timing and turnover rates in regard to the report. Ms. Chan stated RMI considered stock turnover rates in addition to costs. For example, stock turnover rates for vehicles were considered.  A board member would like more information regarding the transportation goal related to miles traveled (“30 percent reduction in vehicle miles traveled”). RMI can provide more information regarding this and how they set this particular goal.  The board members discussed behavioral changes and the likelihood that consumers will make the necessary changes to achieve the goals outlined in the report. The board members discussed how to engage the public in making these changes. RMI staff believes there is great potential for efficiency.  A board member asked for clarification on how Utilities will adjust the rate structure to accommodate the initial cost increase. Mr. Catanach stated Utilities will need to look at particular business models to determine the rate structure. Next Steps  Staff will send the RMI report to City Council.  Sustainability Services has scheduled a City Council Work Session to discuss community greenhouse gas goals. This has been scheduled for January 2014. Also, staff will present this item to other boards and commissions for their awareness.  Staff will continue to work on the Energy Policy.  RMI staff will provide more information regarding the transportation data.  The board members and RMI staff discussed holding a Work Session to look at the data in more detail.  The board members discussed making a recommendation to City Council regarding endorsing the goals outlined in the report. Review and Provide Advice to City Council City’s Legislative Policy Agenda Regarding Energy and Energy-Related Carbon Issues (Attachments available upon request). Policy and Project Manager Dan Weinheimer presented information on this item. Mr. Weinheimer serves as the City’s Lobbyist and also serves on the City’s Legislative Review Committee. This committee includes Councilmembers Wade Troxell, Lisa Poppaw, and Ross Cunniff; Assistant City Manager Wendy Williams; and City Attorney Steve Roy. The City works with the Colorado Municipal League on many legislative items facing cities and also works with the Colorado Association of Municipal Utilities (CAMU). Mr. Weinheimer provided a draft list of Legislative Priorities to the board members. This list includes support allowing local governments to provide broadband communication services, support increasing local control of oil and gas operations, and support necessary resources to aid Northern Colorado recovery from 2013 flooding. He also provided a draft of the Legislative Policy Agenda. This includes items such as Economic Health, Environmental Health, and Transportation. Highlights from the discussion:  A board member noted that the issue of widening Interstate 25 through Fort Collins is not listed as a priority. Mr. Weinheimer stated this issue is not a Council priority at this time.