HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/04/2022 - FIRST READING OF ORDINANCE NO. 005, 2022, AMENDING Agenda Item 4
Item # 4 Page 1
AGENDA ITEM SUMMARY January 4, 2022
City Council
STAFF
Kirk Longstein, Project Manager
Cyril Vidergar, Legal
SUBJECT
First Reading of Ordinance No. 005, 2022, Amending Chapter 12 of the Code of the City of Fort Collins
Regarding the Requirements for the Building Energy and Water Scoring Program.
EXECUTIVE SUMMARY
The purpose of this item is to amend City Code sections related to the Building Energy and Water Scoring
(BEWS) program to align with new State of Colorado legislation and to improve the efficiency of administration.
This item does not add any new requirements for building owners.
These changes include:
• Alignment with Colorado HB 21-1286 (codified at C.R.S. §25-7-142) “Energy Performance for Buildings.”
• Removal of program phasing which was included in the original BEWS ordinance in 2018. All properties
5,000 square feet and larger will have annual reporting requirements starting June 1, 2022.
• Removal of prohibition on setting a required minimum ENERGY STAR ® score for non-City buildings.
• Addition of a requirement for the City Manager to set Building Energy Performance Standards for all City
owned facilities in alignment with HB 21-1286.
• Revisions to violations and penalties to align with Municipal Court process es outlined by §1-15(f) of the
Code
• Add exemption categories that align with HB 21-1286.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND
Building Energy and Water Scoring (BEWS) History
Adopted December 4, 2018, the Building Energy and Water Scoring (BEWS) program increases transparency
and access to building energy and water efficiency data for commercial and multifamily buildings 5,000 square
feet and above. The program enhances consumer choices and tr ansparency in the real estate market,
providing access to information about building energy and water use to aid in sales and lease decisions. The
alignment with Utilities incentives provides additional benefits to covered building owners who use
benchmarking information when making decisions related to retrofitting existing buildings with energy
conservation investments.
Agenda Item 4
Item # 4 Page 2
During the first phase of the program’s implementation (2019-2020), 347 covered buildings greater than
20,000 square feet began reporting, and in year two (2021) 849 commercial and multifamily buildings started
reporting benchmarking data to the City. The proposed changes to the Code remove the phased reporting
requirements of building sizes and type representing the remaining commercial and multifamily building greater
than 5,000 square feet.
Starting June 1, 2022, approx. 2,700 commercial and multifamily buildings will submit benchmarking data to
the City of Fort Collins and the staff will remit approximately 250 covered buildings’ ben chmarking data to the
State of Colorado for compliance with HB 21-1286.
Building Energy and Water Scoring (BEWS) Administration
In its first year, the program achieved a 91% percent compliance rate with 317 out of 347 buildings complying
with program requirements. With an initial 12-month grace period offered to covered buildings reporting for the
first time, the City has received 511 benchmarking reports through voluntary compliance and ahead of the next
compliance deadline on June 1, 2022.
Staff’s proposed Code changes reflect lessons learned from three years of program administration and
enforcement. In addition to aligning exemption categories with state statute, changes also align with the
Municipal Court’s due process, as outlined in existing Code at §1-15(f).
State Benchmarking
HB 21- 1286 (codified at C.R.S. 25-7-142) requires owners of large commercial, multifamily, and public
buildings 50,000 square feet or more in Colorado to report annual energy use to the Colorado Energy Office
(CEO). The benchmarking requirements are similar to the City of Fort Collins Building Energy and Water
Scoring program; however HB 21-1286 does not expressly supersede or preempt local ordinances. With
coordination at the State of CEO, building owners will report to the City’s program and program staff will remit
required benchmarking data to the State. The City will continue to enforce local requirements and has
maintained variance categories that reflect local conditions. In addition, the City will share any public data from
the existing transparency map posted online, and the CEO has signaled it will share public data of buildings
under 50,000 square feet on a statewide map.
Since the passage of HB 21-1286, Fort Collins has engaged with the CEO to ensure a smooth transition for
local program integration. In collaboration with City of Denver and the City of Boulder, a business process has
been established with the State through a shared reporting deadline, metrics and a single location for building
owners to report benchmarking data. Integration with the State’s program through shared reporting
requirements considers the easiest compliance path for local building owners benchmarking and reporting
through the Energy Star Portfolio Manager (ESPM) tool. By streamlinin g the compliance path and
communications between our programs, the long-term relationships held by the City will serve as an asset to
the State’s program compliance rate as well as avoid long term challenges with communicating data errors,
and non-compliance with both programs.
State Building Performance Standards
In addition to benchmarking requirements similar to the City’s Building and Energy and Water program, the
state statute commits to Building Performance Standards (BPS) for buildings greater tha n 50,000 square feet
by 2026. Per statute, the CEO has convened a task force to develop BPS recommendations to meet sector -
wide greenhouse gas (GHG) reduction targets of 7% by 2026 and 20% by 2030 from a 2021 baseline.
Adopted March 2021, the Fort Collins’ Our Climate Future plan outlines an ongoing framework and list of
strategies for addressing Climate, Waste and Energy goals while improving equity and resilience outcomes.
Within the plan, the Efficient, Emission Free Buildings Big Move directs the comm unity to explore adding
performance standards within the framework of the Building Energy and Water Scoring program.
Agenda Item 4
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A BPS model ordinance would require minimum energy performance requirements for specific building
sectors. The proposed ordinance before Council does not propose BPS minimum requirements on non-City
owned buildings, though it does remove language which prohibits the City from considering such standards.
Additionally, updates to the Code include a provision that the City Manager will set BPS requirements for City-
owned facilities in alignment with HB 21-1286.
BOARD RECOMMENDATION
The Energy Board discussed the proposed BEWS program update, and HB21 -1286 at its December 9, 2021,
regular meeting. The Energy Board added Building Performance St andards to its 2022 work plan.
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ORDINANCE NO. 005, 2022
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 12 OF THE CODE OF THE CITY OF
FORT COLLINS REGARDING THE REQUIREMENTS
FOR THE BUILDING ENERGY AND WATER SCORING PROGRAM
WHEREAS, the City of Fort Collins’ strategic vision seeks to build a culture of
innovation and a future climate economy; and
WHEREAS, on October 2, 2018, City Council adopted Resolution 2018-094,
establishing a communitywide 100% renewable electricity goal by 2030, in furtherance of the
City’s 2015 CAP Framework (adopted by Resolution 2015-030), 2015 Energy Policy goals; and
WHEREAS, on December 4, 2018, City Council adopted Ordinance No. 144, 2018,
creating the Fort Collins Building Energy and Water Scoring (BEWS) program under Art. XI,
Chapter 12 of the City Code, to increase transparency and access to building information, and
enhance coordination among community efficiency programs and partner organizations across
public, nonprofit, and private sectors; and
WHEREAS, community building performance scoring is an identified strategy in the
City’s Our Climate Future plan (2021) which addresses energy and water goals, and the absence
of this data reduces the efficacy of measures targeting these community goals; and
WHEREAS, public BEWS data provides transparent energy and water performance
information to prospective tenants and investors and thereby improves the City’s ability to attract
tenants and investors seeking to live and work in a world-class City; and
WHEREAS, on September 7, 2021, Colorado HB 21-1286 became effective (codified at
C.R.S. § 25-7-142), requiring owners of commercial, multifamily, and public buildings with
gross floor areas of 50,000 square feet or more to report annual energy use to the Colorado
Energy Office, which building performance reporting is similar to the City’s BEWS program
though expressly does not preempt local building scoring ordinances; and
WHEREAS, based on input from commercial building owners, operators, and real estate
professionals gained during BEWS program implementation, and to align with HB 21-1286, staff
have identified formatting and terminology updates to City Code to improve the clarity with
which BEWS requirements are stated and applied; and
WHEREAS, staff recommends City Council adopt the proposed BEWS program updates
in furtherance of Council’s support of community climate, energy and water efficiency efforts, as
administered by Utilities Customer Connections staff; and
WHEREAS, the Energy Board discussed the proposed BEWS program updates, and HB
21-1286 at its December 9, 2021, regular meeting, and the Board added Building Performance
Standards to its 2022 work plan.; and
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WHEREAS, the Interim City Manager and staff recommend to the City Council the
following program adjustments and City Code language clarifications for all BEWS reporting
due for reporting years starting June 1, 2022; and
WHEREAS, based on the foregoing, the City Council finds and determines that the
adoption of this Ordinance is necessary for the public’s health, safety and welfare and, therefore,
wishes to amend Art. XI, Chapter 12 of the City Code to revise the Building Energy and Water
Scoring program conditions and reporting requirements as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Section 12-201 of the Code of the City of Fort Collins is hereby
amended by the adoption of a new subsection (d) to read as follows:
Sec. 12-201. - Purpose and applicability
…
(d) This Article applies to privately owned covered buildings as defined in §12-202 and in
C.R.S. §25-7-142.
Section 3. That Section 12-202 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 12-202. - Definitions
The following words, terms and phrases, when used in this Article, shall have the
meaning ascribed to them in this section. Words, terms and phrases defined in the rules,
regulations, policies and procedures adopted by the City Manager shall have the meaning set
forth therein:
. . .
Covered building shall mean any building or group of adjacent buildings in the City of
Fort Collins with a Gross Floor Area that is five thousand (5,000) square feet or larger and is a
Ccommercial covered building are as defined by ENERGY STAR® Portfolio Manager® or and
defined by Commercial Building Energy Consumption Survey (CBECS) published by the United
States Energy Information Administration (EIA). Covered buildings include apartments and
condominium buildings three stories or more in height above grade and representing multifamily
structures defined by a typical R-2 occupancy by the International Building Code.
. . .
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Owner shall mean the person or entity including common interest ownership groups
having a legal or equitable interest in real property and the associated asset features of a covered
building during the calendar year in which benchmarking is required under §12-203(b)(1).
Public building shall mean a covered building owned by:
(1) The state;
(2) A local government;
(3) A district or special district regulated under Title 32 of the Colorado Revised
Statutes;
(4) A state institution of higher education;
(5) A private institution of higher education as defined in C.R.S §23-18-102(9);
(6) A school district created pursuant to Article 30, Title 22 of the Colorado Revised
Statues; and
(7) A charter school authorized pursuant to Part 1 of Article 30.5, Title 22 of the
Colorado Revised Statutes.
. . .
Section 3. That Section 12-203 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 12-203. - Building energy and water score reporting.
(a) Initial Compliance. Owners shall begin benchmarking building energy and water usage
through ENERGY STAR® Portfolio Manager® upon the dates listed below and will
follow an annual reporting cycle thereafter:
(1) Owners of Commercial Covered Buildings, including City-owned Covered
Buildings, with a Gross Floor Area equal to or greater than twenty thousand
(20,000) square feet shall begin reporting by March 1, 2020.
(2) Owners of Commercial Covered Buildings, including City-owned Covered
Buildings, with a Gross Floor Area between ten thousand (10,000) and twenty
thousand (20,000) square feet shall begin reporting by March 1, 2021.
(3) Owners of Multifamily Covered Buildings with a Gross Floor Area equal to or
greater than twenty thousand (20,000) square feet shall begin reporting by March
1, 2021.
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(4) Owners of Commercial Covered Buildings, including City-owned Covered
Buildings, with a Gross Floor Area between five thousand (5,000) and ten
thousand (10,000) square feet shall begin reporting by March 1, 2022.
(5) Owners of Multifamily Covered Buildings with a Gross Floor Area equal to or
greater than ten thousand (10,000) and up to twenty thousand (20,000) square feet
shall begin reporting by March 1, 2022.
(6) Owners of Multifamily Covered Buildings, with a Gross Floor Area between five
thousand (5,000) and ten thousand (10,000) square feet shall begin reporting by
March 1, 2023.
(a) Reporting properties. Owners of commercial and multifamily covered buildings,
including City-owned covered buildings, with a gross floor area greater than five thousand
(5,000) square feet, shall begin benchmarking building energy and water usage through
ENERGY STAR® Portfolio Manager® starting June 1, 2022, and follow an annual reporting
cycle thereafter:
(b) Ongoing compliance. After the initial compliance date for each owners group, as set forth
in section (a), eEach covered building owner group will report on an annual basis, as follows:
(1) Benchmarking. The Owner shall provide the information necessary to benchmark
energy and water usage as defined in § 12-202 for the previous calendar year, such that
reported data encompasses January 1 to December 31 of the prior calendar year in
accordance with this Article and any rules, regulations, policies and procedures adopted
by the City Manager.
(2) Reporting. For every building subject to this Article, the Owner shall annually
submit to the City an energy and water benchmarking report according to the schedule set
forth herein. The energy and water benchmarking report shall be based on data entered
into ENERGY STAR® Portfolio Manager® reflecting the energy and water performance
information for the whole building during the full calendar year being reported. The
energy and water benchmarking “report” shall, at minimum, include the building address,
facility gross square footage, property type, and the individual or entity responsible for
submitting the benchmarking report.
(3) Transparency. Reported benchmarking information and data obtained from
reports submitted pursuant to this Article, including only ENERGY STAR score, Energy
Use Intensity, and Water Use Intensity, shall be available to the public, consistent with
City open data policies, as adopted in Resolution No. 2017-014 and on file with the City
Clerk as shall beas amended from time to time.
(4) Score Mandates Prohibited. The City shall not require a minimum ENERGY
STAR score for non-City-owned buildings pursuant to this program.
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(c) Building Performance Standards. The City Manager will promulgate rules consistent
with §12-207 and pursuant to capital expansion projects, facilities master plan and design
standards for City-owned buildings by December 31, 2022, establishing performance standards
to achieve a reduction in building energy use of seven percent (7%) by 2026, compared to 2021
benchmarking data. City-owned building energy performance will be included in annual reports
submitted to City Council as required in §12-208.
Section 4. That Section 12-205(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 12-205. – Exemptions; variance.
(a) Owners may apply annually to the City Manager for exemption from the benchmarking
and reporting requirements of this Article and in the manner described in any rules and
regulations promulgated by the City Manager. The City Manager, or theirhis or her delegate will
review and render a decision on any application for exemption or variance from the requirements
of this Article. An exemption or variance may be granted for any building that meets at least one
of the following criteria:
(1) The building was not occupied for all twelve (12) months of the calendar year for
which benchmarking is required had an average physical occupancy of less than sixty
(60) percent, throughout the calendar year for which benchmarking is required, based on
criteria set forth in rules, regulations, policies and procedures adopted by the City
Manager;
(2) A demolition permit for the entire building has been issued and for which
demolition work has commenced on or before the date the benchmarking report is due;
The building is used 50% or more for industrial or agricultural processes, as such
activities are defined by ENERGY STAR® Portfolio Manager®;
(3) The building is presently experiencing qualifying financial distress, as defined by
any of the following: (1) the building is the subject of a qualified tax lien sale or public
auction due to property tax arrearages; (2) the building is controlled by a court appointed
receiver; or (3) the building has been acquired by a deed in lieu of foreclosure;The Owner
can demonstrate the subject building’s performance information is or involves a
confidential business practice, including trade secret, privileged, or confidential
commercial information. To qualify for this exemption, the Owner shall specifically
identify the information it believes to be confidential and provide a written statement
describing the manner in which public disclosure would cause substantial harm to the
Owner's competitive position in efficient energy usage alone will not be considered
confidential commercial information; and
(4) The building had an average physical occupancy of less than sixty (60) percent,
throughout the calendar year for which benchmarking is required, based on criteria set
forth in rules, regulations, policies and procedures adopted by the City Manager;The
building is a “public building” as defined by §12-202.
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(5) The building is used 50% or more for industrial or agricultural processes, as such
activities are defined by ENERGY STAR® Portfolio Manager®; The covered building
meets the criteria for a waiver from benchmarking or reporting deadlines under C.R.S.
§25-7-142 (5).
(6) The Owner can demonstrate the subject building’s performance information is or
involves a confidential business practice, including trade secret, privileged, or
confidential commercial information. In order to qualify for this exemption, the Owner
shall specifically identify the information it believes to be confidential and provide a
written statement describing the manner in which public disclosure would cause
substantial harm to the Owner's competitive position in efficient energy usage alone will
not be considered confidential commercial information; and
(7)(6) The City Manager determines that, due to special circumstances unique to the
applicant's building and not based on a condition caused by actions of the applicant, strict
compliance with the benchmarking and reporting requirements would cause undue
hardship or would not be in the public interest.
. . .
Section 5. That Section 12-207(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 12-207. - Violations and penalties.
Any person who violates §12-203 or §12-204 of this Article without an applicable
exception or variance commits a civil infraction and is subject to the penalty provisions of
Subsection §1-15(f) of the Code., except:
(a) the civil penalty for such infraction shall not exceed one thousand dollars
($1,000.) per violation; and
(b) fFailure to comply with §12-203 or §12-204 in any calendar year shall constitute
a single violation in that calendar year.
Introduced, considered favorably on first reading, and ordered published this 4th day of
January, A.D. 2022, and to be presented for final passage on the 18th day of January, A.D. 2022.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
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Passed and adopted on final reading on the 18th day of January, A.D. 2022.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk