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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/11/2012 - FORTZEDDATE: December 11, 2012 STAFF: Bruce Hendee, Steve Catanach, Katy Bigner Pre-taped staff presentation: available at fcgov.com/clerk/agendas.php WORK SESSION ITEM FORT COLLINS CITY COUNCIL SUBJECT FOR DISCUSSION FortZED EXECUTIVE SUMMARY FortZED (Zero Energy District) is a community-driven initiative to create one of the world’s largest net zero energy districts in Fort Collins. The mission of FortZED is to transform the downtown area of Fort Collins and the main campus of Colorado State University (CSU) into a zero energy district- by reducing the amount of energy used, plus generating as much renewable energy locally as is used on an annual basis. For FortZED, public and private cooperation is a key to success. The FortZED initiative has a long standing history of collaboration and partnership with a diverse group of regional and international organizations, private enterprise, public organizations, and passionate individuals. The supporting project partners include: City of Fort Collins, Colorado Clean Energy Cluster (CCEC), Colorado State University-Main Campus (CSU) and its Engines and Energy Conversion Laboratory, Brendle Group, Woodward, Spirae, New Belgium Brewing, and many others. This visionary project will help prove out the concepts, pathways and technologies to achieve both the carbon reduction and energy goals established by City Council. FortZED offers many benefits to the community and region, supporting a progressive utility, fostering local innovation, entrepreneurship, economic health, climate change mitigation and support for local innovative energy technology companies. The substantial public recognition FortZED has received demonstrates that the vision of creating zero energy cities is an important issue, not only for Fort Collins, but for the state, the nation and internationally. The work of FortZED is a leading edge effort that partners the City, University, community and the business world to create a replicable model that can be used around the world. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED This is a status update on FortZED, which will includes the history, progress to date and next steps for the project. No questions are being asked or direction sought at this time. BACKGROUND / DISCUSSION History FortZED was developed in 2007 by a UniverCity Connections Sustainable Energy Taskforce. UniverCity Connections (UCC) is an initiative of the Community Foundation of Northern Colorado, December 11, 2012 Page 2 focused on convening community and catalyzing opportunities for positive change. The FortZED initiative evolved from the UCC taskforce to become a three-way collaboration between the City of Fort Collins, the Colorado Clean Energy Cluster and UniverCity Connections from 2007-2012. The Colorado Clean Energy Cluster (CCEC) is an economically focused non-profit organization that works to incubate and grow Colorado’s clean energy companies through collaborative initiatives, one of which is FortZED. In September 2012, UCC officially withdrew from the FortZED partnership to focus on other community issues. FortZED has always had a strong relationship with CSU related to the project, and is in the process of formalizing this partnership. The governance structure of FortZED has been recently revised to formalize the partnerships, trademark authority management, and membership among the three organizations. The FortZED Steering Committee is made up of representatives from each of the three entities and the public. The City’s role in FortZED has been instrumental from the beginning. Four city staff members now serve on the FortZED Steering Committee, including the Chief Sustainability Officer, Chief Financial Officer, Light and Power Operations Manager and the Service Area manager of Communications and Public Involvement. Three Offers approved in 2013/2014 adopted budget focus on supporting the administration of FortZED, including coordination of the Steering Committee, communication and marketing and partnering with an external organization for the administration of the FortZED Community Energy Challenge. See Attachment 1 for FortZED Strategies for Achieving a Zero Energy District in Fort Collins. Location The FortZED district encompasses about two square miles including downtown Fort Collins from the Poudre River on the north and south and west to the campus of CSU. While the district is a small portion of the city, it represents 10-15% of the electric distribution system, 45 Megawatts (MW) of peak demand and includes about 7,200 residential and commercial customers. See Attachment 2 for the FortZED Boundary Map National and International Magnet FortZED has drawn national and international attention and funding for its vision and progress to date. Recent visitors and interest specific to FortZED include: • India – BESCOM • India Ministry of Energy • International Cleantech Network, including clean tech clusters from Norway, Denmark, North Carolina and Spain • Japanese mayor of Gifu prefecture – went from DIA directly to Fort Collins for FortZED only • Japanese Consulate General • Japanese Department of the New Energy and Industrial Technology Development Organization (NEDO) • Russian Delegation December 11, 2012 Page 3 • United Kingdom Consulate General • Chevron Energy Solutions (an Energy Services Company or ESCO) • Electrification Coalition, three visits • Schneider Electric (via CCEC’s International Cleantech Network partnership with Research Triangle Cleantech Cluster) • Front Range Sustainability Working Group • French Normandy region officials • Denver Metro Chamber’s Colorado Experience (with 200 business leaders) • Lowry Redevelopment Authority • City of Asheville Council Member, Cecil Bothwell • Rocky Mountain Institute • Lead story of June 2012 Issue of ColoradoBiz Magazine • Mentioned in multiple news articles by the Wall Street Journal, U.S. News and World Report, Colorado Business Journal, InnovatioNews, Public Power Magazine, Distributed Energy Magazine • FortZED website visits from over 60 countries Complementary to City Policy FortZED strategies and objectives support the Energy Policy and other related Utilities programs and projects, as well as the City’s Climate Action Plan. FortZED is also referenced in Plan Fort Collins as a catalyst project. The partnership between public and private organizations leverages research and development, piloting of new technology, community engagement and economic health. In 2008, City Council adopted goals to reduce community greenhouse gas emissions by 20 percent below 2005 levels by 2020 and by 80 percent by 2050. The ensuing 2008 Climate Action Plan references energy conservation, energy efficiency, renewable energy, and smart grid technologies for carbon emissions reduction, which the FortZED strategies address through its partners and projects. Council adoption of the 2009 Energy Policy provides strategic planning guidance for Fort Collins Utilities’ Light and Power Service Unit, the Energy Services group and the entire City government. The following Energy Policy objectives are supported by FortZED goals: • Support the community’s carbon emissions goal of reducing the City’s carbon footprint 20 percent below 2005 levels by 2020 and 80 percent by 2050; • Enhance local economic health; • Participate in research, development and demonstration efforts to remain at the forefront of emerging technologies and innovative solutions. Council expects the following outcomes and benefits stemming from implementation of the 2009 Energy Policy, which is supported by FortZED objectives: • Modernization of electric metering system; • Reduction of greenhouse gas emissions from efficiency, conservation and renewable energy; • Local economic benefits resulting from a healthy municipal utility, high electric system reliability, competitive electric rates and investments in efficiency and renewable energy. December 11, 2012 Page 4 Local Benefits There are technological and economic benefits of this initiative to the local community that include testing and demonstrating new technologies and supporting innovative businesses, such as those supported by the Rocky Mountain Innosphere. Between 2009 and 2011, over $11 million (M) was received and was focused on the FortZED project, of which $6.3M of came from outside the region from the Department of Energy (DOE) as part of cooperative study, the remaining amount was local matching funds. This influx of money during the economic recession was a beneficial outcome to the Fort Collins community, as well as local and national companies. Ancillary benefits of advancing FortZED and Fort Collins Utilities strategies, the implementation of new renewable energy and smart grid technologies, such as solar photovoltaics (PV), can create an estimated 20 manufacturing jobs and 13 installation/maintenance jobs for every MegaWatt of PV installed (Ban- Weiss, 11). Additionally, Fort Collins Utilities estimates that savings to Fort Collins residents and businesses from the promotion and implementation of energy efficiency programs generated over $15M in local economic benefits through reduced utility bills, incentives, leveraged investment and indirect activity. PROJECT PROGRESS TO DATE RDSI Study The FortZED initiative received $6.3M in funding from the Department of Energy’s (DOE) nationwide Renewable and Distributed Systems Integration (RDSI) program, along with local matching funds of $5.1M in 2009 to “jump start” the demonstration of innovative smart grid technologies. The DOE supported the vision of FortZED through this grant that demonstrated new technologies for managing distributed and renewable energy and peak energy load management. The goal of this study was to show whether peak load could be reduced. Peak load is the maximum amount of power consumption during a certain time, by 20 to 30 percent, while integrating distributed energy from distributed resources such as solar panels, biogas and other temporary sources such as the emergency diesel generator as City Hall. Another key accomplishment of the RDSI project was the coordination, collaboration and engagement with diverse partners such as Larimer County, CSU’s main campus and the Engines and Energy Conversion Laboratory, Woodward, New Belgium Brewing, Spirae, Advanced Energy, City of Fort Collins, Eaton, Van Dyne, Brendle Group and Integrid Laboratory. Fort Collins Utilities was responsible for coordinating, project management and reporting. The study demonstrated new technologies for managing renewable energy and peak energy load management. The Fort Collins RDSI project was driven by three overarching goals: • Fulfill the requirements of the Department of Energy (DOE) RDSI Cooperative study: most notably, to demonstrate the ability to reduce electric system distribution feeder peak load by 20 percent or more through the coordinated use of Distributed Energy Resources (DER) • Advance the expertise, technologies and infrastructure necessary to achieve the vision of FortZED and move towards creating a zero energy district in the Fort Collins “Old Town” area • Further the goals of the City of Fort Collins Energy Policy including the development of a December 11, 2012 Page 5 Smart Grid-enabled distribution system in Fort Collins, expanded use of renewable energy, increased energy conservation, and peak load reduction. Significant lessons were learned that helped advance the knowledge and general understanding required to further expand the use of renewable and distributed resources to provide benefits to the wider electrical infrastructure. As was key in the early stages of project development and planning, the single most critical element that contributed to the success of this project has been the Project Partners, and the individuals within those organizations whose dedication and commitment made this cooperative project a reality. The Fort Collins RDSI project was one of nine other DOE studies and was the first participant to complete the requirements of the study and was lauded by the DOE for the being among the highest performing of all RDSI projects in complexity and outcomes. Building upon the success of this project, Fort Collins Utilities proposed extending and adding an additional technical study with a limited scope to the DOE in mid-2012. DOE has agreed to extend the project another year and the new elements will focus on distributed resource management related to solar installations and electric grid security. New Energy Communities Grant As part of a regional partnership, the City of Fort Collins, Fort Collins Housing Authority, the Fort Collins Regional Library District and Larimer County were awarded $778,000 from the Colorado Department of Local Affairs to retro-commission buildings, apply energy efficiency upgrades, and install renewable energy projects between 2009 and 2011. Combined with Utility incentives, local matching funds from the Bohemian Foundation and participant funds, the total project was a $3.1M. Three of the 16 projects were within FortZED boundaries. The 16 projects are estimated to save over 2.8 million kilowatt-hours (kWh) per year. Within FortZED, a 58 kilowatt PV system was installed and two buildings (Civic Center and City Hall) were retro-commissioned, resulting in an estimated annual savings of 33,700 kWh. Community Engagement FortZED currently has a community engagement aspect that focuses specifically on residents through a grassroots effort in collaboration with The Atmosphere Conservancy (TAC). This effort, called the FortZED Community Energy Challenge, engages and educates residents and community members to help achieve the FortZED vision through an energy conservation and efficiency pledge. TAC works with City staff to help promote and leverage existing Utilities efficiency rebates and programs. This campaign has had over 2,000 household participation pledges and has hosted two “ZEDFest” house party celebrations throughout Fort Collins to increase energy efficiency and conservation understanding and action. Additionally, there was a Green Restaurant initiative in 2008, which focused on engaging local downtown restaurants to improve restaurant efficiency through sustainability programs and of the incorporation of energy efficient equipment. During Green Dining Week, participating restaurants committed eight percent of the week’s average daily revenue to implementing sustainable practices like investing in energy efficient equipment and developing conservation programs. December 11, 2012 Page 6 NEXT PHASE The substantial public recognition FortZED has received demonstrates that the vision of creating zero energy cities is an important issue, not only for Fort Collins, but for the state, the nation and internationally. The work of FortZED is a leading edge effort that partners the City, University, and the community and private enterprise to create a replicable model that can be used around the world. FortZED has gained considerable momentum as a result of the approval of formal budget funding, additional RDSI study support and the recent RMI charrette. The next year will be critical to maintain this path to advance the FortZED vision. Considering the complex partnerships, funding challenges and institutional barriers, the Steering Committee will need to further develop and refresh goals, strategies and tactics. Three FortZED Budget Offers were submitted in the 2013/2014 budget cycle that will enhance support and small scale projects to advance identified objectives. In addition, Fort Collins Utilities included two Offers for a feed-in-tariff and community solar program that would greatly benefit the FortZED initiative by expanding renewable energy production within the FortZED boundary. Key 2013 objectives for the FortZED Steering Committee will include: • Further exploring and identifying the strategic and action steps from the RMI charrette; • Design of complementary policies/programs; • Refined engagement with community organizations and improved metrics for participation; • Pursuit of grants and other funding mechanisms; • Advancing new and established relationships with organizations such as the Electrification Coalition, Department of Energy, and others to leverage technology research and demonstration opportunities; and • Carbon reduction and transportation through electric vehicles and other programs. Rocky Mountain Institute ELab Design Charrette As an initial step in moving forward, the Rocky Mountain Institute approached the FortZED Steering Committee in July 2012 to partner in its Electricity Innovation Lab (www.rmi.org/elab). Rocky Mountain Institute is a well-established, Colorado non-profit organization with a strong reputation for being dedicated to advancing the field of sustainability and innovation in energy and resource efficiency. The mission of ELab is to support engagement and innovation across traditional institutional boundaries to overcome barriers to support economically-viable deployment of distributed and demand side resources in the electricity sector. This mission dovetails with the FortZED vision to work together with a diverse group of partners for technological solutions that will not only achieve a zero energy district in Fort Collins but will support innovative energy technology companies, enhance our local economy and reduce our energy and environmental footprint. This ELab project included a design charrette for FortZED, which occurred November 7-8, 2012. The charrette brought together some of the nation’s leaders in net zero energy development to provide strategic direction for FortZED and brainstorm solutions to some of the hardest questions that FortZED will face in the coming years. Results from this work will be shared broadly to help others working nationally and globally to drive the adoption of efficiency and renewable energy sources and technologies. December 11, 2012 Page 7 The focus of the charrette was to enable FortZED to meet its stated goal of becoming the “model community for a leading and replicable net Zero Energy District”. The outcomes of the charrette included: • Definition of what net zero community leadership looks like and apply it to FortZED 2.0 to refine the vision and goals for FortZED; • Identification of the largest sticking points to achieving the FortZED vision and develop approaches to address them; • Identification of organizational, structural, business model and legal impediments to scaling FortZED to Fort Collins Utilities’ service territory; • Built approaches to drive FortZED solutions to scale and address key impediments; and • Outline next steps to move forward with scoping plan to meet Fort Collins’ goals. Following the charrette, RMI will develop a report and/or additional charrette outputs that provide recommendations to the FortZED Steering Committee and share results and lessons learned with ELab participants and the broader community interested in efficiency, renewables, and net zero energy development. See Attachment 3 for a graphic of RMI/FortZED Charrette Participants. HOW CLOSE TO ZERO IS FORTZED? To achieve a zero energy district within the existing FortZED boundary, the area would need to offset 230,000 MegaWatt hours (MWh) of electricity. Based on current projections, this could be achieved through the following strategies: • Energy Efficiency: Based on observed savings from existing energy efficiency programs, FortZED can expect 43,700 MWh of annual savings by 2030; • Solar: Based on current adoption of annual solar capacity, FortZED will have 4.4 MW of rooftop capacity by 2030, resulting in annual generation of 7,300 MWh; • Wind: Based on Platte River Power Authority’s 2012 Integrated Resource Plan, a wind farm is likely to provide 9,800 MWh of annual generation for FortZED. Based on the status of projects to date, FortZED has achieved approximately 15 percent of the net zero energy goal. See Attachment 4 for an Illustrative Representation of Potential Timeline for Fort Collins Power Transition. Work Cited Ban-Weiss, George, David Larsen, Sonny X. Li, and Dano Wilusz. Job Creation Studies for VOTESOLAR. Tech. Berkeley: University of Berkeley, 2004. Print. December 11, 2012 Page 8 ATTACHMENTS 1. FortZED Strategies for achieving a zero energy district in Fort Collins 2. FortZED Boundary Map 3. Rocky Mountain Institute/FortZED Charrette Participants 4. Illustrative Representation of Potential Timeline for Fort Collins Power Transition 5. 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The time ee, but will be Residential i wer Transitio mber 2012 eline has no e considered installations on ot d as ATTACHMENT 4 1 Update for City Council Work Session December 11, 2012 1 Values 2 ATTACHMENT 5 2 Roots 3 Innovation 4 3 FortZED Boundary 5 Partnership 6 4 Replicable 7 International 8 5 Initiative 9 Engagement 10 6 Community Health 11 Alignment 12 7 13 14 8 15 fcgov.com colostate.edu ColoradoCleanEnergy.com fortzed.com As a community, we hold the power to lead our nation to a more sustainable and prosperous future. 16 9 Thank You Thank You 17