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Home My WebLink AboutCOUNCIL - COMPLETE AGENDA - 09/22/2015 - COMPLETE AGENDACity of Fort Collins Page 1 Wade Troxell, Mayor Council Information Center (CIC) Gerry Horak, District 6, Mayor Pro Tem City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Ray Martinez, District 2 Fort Collins, Colorado Gino Campana, District 3 Kristin Stephens, District 4 Cablecast on City Cable Channel 14 Ross Cunniff, District 5 on the Comcast cable system Carrie Daggett Darin Atteberry Wanda Winkelmann City Attorney City Manager City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. City Council Work Session September 22, 2015 6:00 PM  CALL TO ORDER. 1. Proposed Amendment to the Fort Collins-Windsor Highway 392 Interchange Intergovernmental Agreement (IGA). (staff: Laurie Kadrich; Josh Birks;10 minute staff presentation; 30 minute discussion) The purpose of this item is to consider a proposed amendment to the Highway 392 Interchange IGA to include auto dealerships as a permitted use in the Corridor Activity Center (CAC) Overlay zone. 2. 2015 City of Fort Collins Energy Policy. (staff: John Phelan; 15 minute staff presentation; 30 minute discussion) The purpose of this work session is to present the draft 2015 Energy Policy for feedback prior to presenting to Council to consider adopting as a resolution. The Energy Board, in collaboration with staff, has developed a draft Energy Policy for Council consideration. The draft Policy, when adopted by resolution, will replace the current 2009 Energy Policy. In alignment with Ordinance No. 098, 2011, the scope of the policy has expanded from past versions to include all types of energy sources and end-uses delivered within the community, which include electricity, natural gas and transportation fuels. The Policy update was timed to allow for coordination with the Climate Action Plan Framework (CAP) and associated goals adopted by Council earlier in 2015. The Policy provides goals for the prioritization of decision making, programs and services related to the quantity of use and the energy sources for electricity, thermal end-uses and transportation. The Policy uses a systems approach to energy production and consumption, as well as triple bottom line metrics (economy, society, and environment) and guides City government in the City of Fort Collins Page 2 development of plans promoting policy outcomes for residents, businesses and other organizations. The City also has a role in the demonstration of policy initiatives through leading by example.  OTHER BUSINESS.  ADJOURNMENT. DATE: STAFF: September 22, 2015 Laurie Kadrich, Director of PDT Josh Birks, Economic Health Director WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Proposed Amendment to the Fort Collins-Windsor Highway 392 Interchange Intergovernmental Agreement (IGA). EXECUTIVE SUMMARY The purpose of this item is to consider a proposed amendment to the Highway 392 Interchange IGA to include auto dealerships as a permitted use in the Corridor Activity Center (CAC) Overlay zone. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does the Council wish to meet with the Town Board of Windsor to explore a request to amend the existing IGA to include auto dealerships as a permitted use in the CAC? BACKGROUND / DISCUSSION On August 24, 2015, Mayor Troxell and Mayor Pro Tem Horak received a letter from the Mayor of Windsor, Mr. John S. Vazquez, asking for Council to consider discussing the concept of including auto dealerships at the I- 25/Highway 392 Interchange (Attachment 1). The letter requested that Council consider discussing a concept to permit automobile dealerships as a permitted use within the I-25/Highway 392 CAC. The letter further mentioned that Windsor did not wish to attract businesses away from Fort Collins nor approve development contrary to the clear terms of the IGA. The City Plan vision for the I-25 Corridor provides two guidelines for development: compact mixed-use activity centers at interchanges and reduced development and/or open lands between the interchanges. In 2008, using those principles, Windsor and Fort Collins developed a joint plan for improvements and development at the I25- Highway 392 Interchange. The total project cost was $26.97 million and included joint design standards, CAC overlay zone, land uses, cost and revenue sharing. Since 2008 there have been two amendments to the original IGA that defined procedures for implementation, definitions and revenue sharing aspects. Also, in 2013 an administrative IGA was developed describing a joint development review process for any development within the CAC. In addition to these documents there are two other planning documents (I-25 Regional Corridor Plan, 2001 and I-25 Subarea Plan, 2003) that provide guidance for development along I-25. Enacting Land Use Codes (LUC) were put in place to provide methods to implement the documents and included:  Residential Setback from I-25 at ¼ mile  Commercial building design standards  Building height and placement standards  Landscaping and screening standards  Corridor Activity Center standards Improvements to the I-25/Highway 392 Interchange were made in 2011-2012 and included a complete rebuild of the interchange, including the ramps and both frontage roads. Community entrance signs were completed this year. The total improvements cost was nearly $27 million dollars and a combination of federal, state and local funds were used to pay for the improvements. Following the improvements Windsor and Fort Collins agreed to joint planning and standards for the lands affected by the improvements. The CAC described what uses would be allowed within those areas and a cost and revenue-sharing formula was developed. During those discussions auto dealerships were considered; however, they were not included as a permitted use within the CAC. The principle reasons for not including dealerships were that the interchange was considered a “gateway” to both 1 Packet Pg. 3 September 22, 2015 Page 2 communities and that more intensive mixed use development would be more appropriate in the CAC. Revenue generation, signage and aesthetics were also considerations. Staff does not believe the original vision for the Corridor includes auto dealerships and recognizes that retention of local businesses is a priority in some cases. As such, if an amendment were to be considered specific design criteria should be jointly developed that addresses the concerns related to signage, landscaping and aesthetics. Representatives of two auto dealerships groups have inquired of the City of Fort Collins and Windsor as to whether the CAC could be amended to include dealerships. If Council were to consider proposal, the following steps would need to be taken to amend the existing agreement:  Joint jurisdiction staff review  Fort Collins Planning and Zoning Board / Windsor Planning Commission recommendations  Windsor Town Board Hearing  Fort Collins City Council Hearing  Fort Collins/Windsor IGA Amendment ATTACHMENTS 1. Letter from the Town of Windsor, August 24, 2015 (PDF) 2. Powerpoint presentation (PDF) 1 Packet Pg. 4 ATTACHMENT 1 1.1 Packet Pg. 5 Attachment: Letter from the Town of Windsor, August 24, 2015 (3569 : I25/Highway 392 Interchange IGA Amendment) 1 Proposed Amendment Fort Collins-Windsor Hwy 392 Interchange Intergovernmental Agreement Laurie Kadrich, PDT Director; Josh Birks Economic Health Director 9-22-15 Council Work Session ATTACHMENT 2 1.2 Packet Pg. 6 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) Question for Council Does the Council wish to meet with the Town Board of Windsor to explore a request to amend the existing Intergovernmental Agreement (IGA) to include auto dealerships as a permitted use? . 2 1.2 Packet Pg. 7 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) Request by Windsor Town Board • Discuss a potential IGA amendment: • I-25/Highway 392 Corridor Activity Center (CAC) • Permitting Auto Dealerships • No activity in the corridor since 2011 • Current request by two dealerships to locate • Town Board not uniform in its view • Requesting a joint meeting to consider this request 3 1.2 Packet Pg. 8 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) I-25 Corridor Background City Plan Vision for I-25 Corridor (2004) • Compact mixed-use activity centers at interchanges • Reduced development/open lands between interchanges 4 1.2 Packet Pg. 9 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) SH 392/I-25 Interchange CAC Overview 1.2 Packet Pg. 10 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) Interchange Improvement Plan • 2008 Joint Plan (Windsor and Fort Collins) • Project cost: $26.97 million • Four Agreements: • 2011 Original IGA • 1st Amendment; implementation • 2nd Amendment; definitions, revenue sharing • Administrative IGA; joint development review 6 1.2 Packet Pg. 11 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) Project final design Interchange Project 1.2 Packet Pg. 12 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) 8 Framework Plan and CAC Area SH 392/I-25 Interchange Corridor Activity Center (CAC) Area 1.2 Packet Pg. 13 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) Fort Collins / Windsor IGA (2011) Highlights of IGA: • Creation of the Corridor Activity Center (“CAC”) • Designation of land uses in the CAC (Incorporated in the land use code by March 31. 2011) • Providing that joint design standards for the CAC (Adopted by March 31, 2011) • Cooperation in development approval reviews within the CAC 1.2 Packet Pg. 14 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) CAC Overlay Amendment Process CAC Amendment Process: • Joint jurisdiction staff review • Fort Collins Planning and Zoning Board/Windsor Planning Commission recommendations • Windsor Town Board Hearing • Fort Collins City Council Hearing • Fort Collins/Windsor IGAAmendment 1.2 Packet Pg. 15 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) Auto Sales and Repair/Servicing 1.2 Packet Pg. 16 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) Land Use Requirements: • Permitted use in the following zone districts: (General Commercial, Service Commercial, Limited Commercial, Industrial) – except not in CAC area • Relationship/orientation of buildings to streets, walkways/parking • Variation in building massing • Design character and image – façade treatments • Parking lot landscaping/lighting and screening Auto Sales and Repair/Servicing 1.2 Packet Pg. 17 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) Question for Council Does the Council wish to meet with the Town Board of Windsor to explore a request to amend the existing Intergovernmental Agreement (IGA) to include auto dealerships as a permitted use? . 13 1.2 Packet Pg. 18 Attachment: Powerpoint presentation (3569 : I25/Highway 392 Interchange IGA Amendment) DATE: STAFF: September 22, 2015 John Phelan, Energy Services Manager WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION 2015 City of Fort Collins Energy Policy. EXECUTIVE SUMMARY The purpose of this work session is to present the draft 2015 Energy Policy for feedback prior to presenting to Council to consider adopting as a resolution. The Energy Board, in collaboration with staff, has developed a draft Energy Policy for Council consideration. The draft Policy, when adopted by resolution, will replace the current 2009 Energy Policy. In alignment with Ordinance No. 098, 2011, the scope of the Policy has expanded from past versions to include all types of energy sources and end-uses delivered within the community, which include electricity, natural gas and transportation fuels. The Policy update was timed to allow for coordination with the Climate Action Plan Framework (CAP) and associated goals adopted by Council earlier in 2015. The Policy provides goals for the prioritization of decision making, programs and services related to the quantity of use and the energy sources for electricity, thermal end-uses and transportation. The Policy uses a systems approach to energy production and consumption, as well as triple bottom line metrics (economy, society, and environment) and guides City government in the development of plans promoting Policy outcomes for residents, businesses and other organizations. The City also has a role in the demonstration of Policy initiatives through leading by example. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council have specific feedback with regards to the Energy Policy goals and objectives? 2. Is the alignment clear between the Energy Policy, Climate Action Plan, Platte River Resource Plan, City Plan and Transportation Master Plan? 3. Is Council ready to consider adoption of the 2015 Energy Policy by resolution in an upcoming meeting? BACKGROUND / DISCUSSION The City of Fort Collins’ Energy Policy reflects Fort Collins’ values of reliability, safety, affordability, greenhouse gas (GHG) emissions reduction, pollution prevention and energy independence. The Policy provides goals for the prioritization of decision making, programs and services related to the quantity of use and the sources of energy for electricity, thermal end-uses and transportation. The Policy uses a systems approach to energy production and consumption, as well as triple bottom line metrics (economy, society, and environment) and guides City government in the development of plans promoting Policy outcomes for residents, businesses and other organizations. The City also has a role in the demonstration of Policy initiatives through leading by example. The City’s first Energy Policy was the 2003 Electric Energy Supply Policy. In 2009, it was revised and renamed the Energy Policy. The proposed update reflects a comprehensive approach for energy issues and includes electricity, heating and transportation fuels and the interactions between them in meeting the community’s energy resource needs. 2 Packet Pg. 19 September 22, 2015 Page 2 ENERGY POLICY STRUCTURE AND KEY ELEMENTS The Energy Policy includes the following sections (Attachment 1):  Overview and Background  Vision and Motivations  Policy Objectives  Built Environment  Electricity Supply and Distribution o Transportation and Land Use  Implementation Principles  Connections and Metrics Key elements of updates to the Energy Policy include:  Revised and updated goals and objectives with a focus on 2020 o The electric efficiency savings goals are proposed to increase from the current 1.5% per year to 2.5% per year by 2020. The methodology proposed for the increased target is based on a revised metric of “incremental” savings in a given year not attributed to programs which are primarily “maintaining” savings, such as Home Energy Reports. Instead programs that maintain the savings will be reported separately and in a “total” savings metric, consistent with utility best practices. As an example, under the revised methodology incremental portfolio savings in both 2013 and 2014 was 1.5%, while the total savings was 2.2%. o The demand response goal for 2020 was revised to 5% of peak demand based on improved understanding of the potential benefits from financial, distribution and system level perspectives. These goals, implemented through Utilities new Demand Response Management System, also known as the Peak Partners program, may be adjusted over time through coordination with Platte River Power Authority (Platte River). o There are two target renewable energy goals for 2020.  The first is for the overall renewable energy percentage to rise to 20% of the electricity resources. Taking into account Platte River’s 2014 addition of wind resources and 2016 addition of solar resources, the overall renewable energy percent is expected to be 11%. New renewable energy additions will be required to ramp up to 20%.  The second goal is for local renewable energy, primarily solar installed on the distribution system, to increase to 2% of the electricity resources. The amount of solar installed locally would need to increase by three times (up to approximately 20 megawatts) to reach this target by 2020.  Partnership with Platte River o The Policy recognizes Fort Collins greenhouse gas emission responsibilities through its ownership stake in Platte River. Fort Collins, as a member-owner of Platte River, is responsible for an ownership allocation of the associated carbon emissions. As of 2014, this ownership, or equity, share was 47%. The Policy will report on the ownership emissions metric in addition to the community based electricity inventory in alignment with CAP reporting.  Alignment with other City plans and policies. The updated scope of the Energy Policy includes energy sources and uses which are impacted substantially by other City policies and plans. Specifically, land development and transportation have their own policy directives. In order to develop alignment over time, the Energy Policy identifies critical metrics and objectives for development in future updates to City Plan and the Transportation Master Plan. Over time, this will develop into a comprehensive aligned approach for energy issues to include electricity, heating and transportation fuels, and the interactions between them. 2 Packet Pg. 20 September 22, 2015 Page 3 Community Engagement Summary Staff and the Energy Board leveraged the extensive community engagement, which was part of the process to develop the Climate Action Plan Framework. In addition, the Energy Board dedicated a portion of one meeting agenda specifically to public comment on the draft Energy Policy and there was an extended public comment period on the Utilities and Energy Board website. Staff and the Energy Board chair also presented the structure, concepts and goals of the draft Energy Policy with eight boards and commissions and several community stakeholder organizations. These included:  Air Quality Advisory Board (twice)  Transportation Board  Planning and Zoning Board  Economic Advisory Commission  Natural Resources Advisory Board  Senior Board  Affordable Housing Advisory Board  Water Board  Chamber of Commerce, Local Legislative Affairs Committee  Downtown Development Authority All comments received and notes from meetings are included in Attachment 3. Both the Energy Board and Air Quality Advisory Board have submitted formal memorandums to Council regarding the draft Energy Policy, which are also included. Existing Implementation and Planning The goals and objectives of the Policy are supported through implementation of a wide range of existing programs, services and market impacts. The 2014 Energy Policy Annual Update is included as Attachment 2. Existing programs and services include:  Utility efficiency, demand response and renewable energy programs, which will need to expand and evolve in order to accomplish the Policy goals. These include the collaborative Efficiency Works programs with Platte River and the other member cities.  Platte River has proposed an increase to energy efficiency funding as part of its 2016 budget. If approved, Fort Collins would effectively see an increase in efficiency funding as part of the City’s equity share in Platte River.  Utilities and Community Development and Neighborhood Services have collaborated on a 2016 mid-cycle budget offer to increase support for energy code performance. If approved, this will improve the compliance rate with existing and future energy code performance requirements. Looking forward, implementation planning for the Policy will incorporate the following efforts:  The CAP implementation process incorporates many of the key activities and coordination related to the Energy Policy goals. The Building Efficiency and Accelerated Alternative Energy Adoption strategic initiative teams in particular will be able to align planning for both Energy Policy and CAP targets and metrics.  The budgeting for outcomes (BFO) process in 2016 will determine City and Utilities resources for 2017 and 2018.  Platte River’s resource planning process is a critical element for changes to the electricity resource mix and efficiency results. One of the key elements of the resource planning efforts will be to meet the Colorado requirements of the federal Clean Power Plan. 2 Packet Pg. 21 September 22, 2015 Page 4  Pending updates to Fort Collins City Plan and the Transportation Master Plan will be critical to develop the specific metrics and objectives related to land use and transportation that are required to align the outcomes intended by the Energy Policy. Timeline for next steps Pending Council direction from this work session, staff will bring forward the Energy Policy for adoption by resolution this fall. ATTACHMENTS 1. 2015 Fort Collins Energy Policy (Proposed) (PDF) 2. 2014 Fort Collins Energy Policy Update (PDF) 3. Energy Policy Community Outreach Summary (PDF) 4. Powerpoint presentation (PDF) 2 Packet Pg. 22 Page | 1 FORT COLLINS ENERGY POLICY September 22, 2015 2.1 Packet Pg. 23 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 2 TABLE OF CONTENTS Overview......................................................................................................................................................... 4 Background ..................................................................................................................................................... 4 Vision and Motivations ................................................................................................................................... 5 Vision ......................................................................................................................................................... 5 Motivations ................................................................................................................................................ 5 Fort Collins energy characterization .......................................................................................................... 5 Policy Objectives ............................................................................................................................................. 7 Built environment ...................................................................................................................................... 7 Improve performance of new buildings ................................................................................................ 7 Improve performance of existing buildings and process energy use ................................................... 7 Electricity supply and distribution ............................................................................................................. 8 Electric supply resources ...................................................................................................................... 8 Reliability .............................................................................................................................................. 8 Electric distribution ............................................................................................................................... 9 Transportation and land use ...................................................................................................................... 9 Development, redevelopment and parking .......................................................................................... 9 Multimodal transportation ................................................................................................................. 10 Fuel-ffficient and electric vehicles ...................................................................................................... 10 Elements of the Transportation Master Plan pertaining to energy .................................................... 11 Elements of land use planning pertaining to energy .......................................................................... 11 Implementation Principles ........................................................................................................................... 12 Systems thinking ...................................................................................................................................... 12 Partnership .............................................................................................................................................. 12 Community economics ............................................................................................................................ 13 Local economic health ........................................................................................................................ 13 Fort Collins UtilitiesLight & Power ..................................................................................................... 13 2.1 Packet Pg. 24 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 3 Electricity pricing ................................................................................................................................. 13 Information and education ...................................................................................................................... 14 Privacy and security ................................................................................................................................. 14 Connections and Metrics .............................................................................................................................. 15 Connections to other plans and programs .............................................................................................. 15 Implementation and metrics ................................................................................................................... 15 Policy review ............................................................................................................................................ 15 2.1 Packet Pg. 25 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 4 OVERVIEW The City of Fort Collins’ Energy Policy reflects our community’s values of reliability, safety, affordability, greenhouse gas (GHG) emissions reduction, pollution prevention and energy independence. The policy provides goals for the prioritization of decision making, programs and services related to the quantity of use and the sources of energy for electricity, thermal end-uses and transportation. The Energy Policy uses a systems approach to energy production and consumption, as well as triple bottom line metrics (economy, society and environment) and guide City government in the development of plans promoting policy outcomes for residents, businesses and other organizations. The City also has a role in the demonstration of policy initiatives through leading by example. BACKGROUND The City’s first energy policy was the 2003 Electric Energy Supply Policy. In 2009, it was revised and renamed the Energy Policy. This update reflects a more comprehensive approach for energy issues and includes electricity, heating and transportation fuels and the interactions between them. The following graphic shows the relationships among the sections of this document. 2.1 Packet Pg. 26 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 5 VISION AND MOTIVATIONS VISION Fort Collins is a leader in the transition to sustainable and resilient local energy systems to serve the communityಬs 2050 carbon neutral future. MOTIVATIONS The Energy Policy seeks to: ವ Maintain or improve the reliability of energy delivery ವ Promote energy affordability and safety for residents, businesses and institutions ವ Support reductions of the community’s GHG emissions from energy use in accordance with the Climate Action Plan (CAP) Framework (March 2015) – the current community GHG goals are a reduction of 20 percent from 2005 levels by 2020, 80 percent by 2030 and carbon neutral by 2050 ವ Reduce the emission of criteria pollutants ವ Reduce the environmental damage caused by energy extraction and production ವ Leverage the role of Fort Collins Utilities Light & Power as the community’s municipally owned utility ವ Retain more of our community’s energy expenditures in the local economy ವ Foster local economic opportunity in energy efficiency, production and operation ವ Leverage opportunities to coordinate integrated planning for energy and water supply and demands ವ Increase our community’s resilience to potential energy and climate related disruptions ವ Maintain compliance with and leverage the potential benefits of local, regional, state and national regulatory frameworks, which impact energy production and use (e.g., carbon, fuel standards, ozone) ವ Make Fort Collins an energy leader that can serve as a model for other communities The Energy Policy also recognizes Fort Collins greenhouse gas emission responsibilities through its ownership stake in Platte River Power Authority (Platte River). As a local action agency, generation and transmission authority, Platte River operates electricity generation facilities on behalf of the member-owner cities of Fort Collins, Loveland, Longmont and Estes Park. These facilities include fossil fuel resources (coal and natural gas), as well as non-carbon resources (hydro, wind and solar). Fort Collins, as a member-owner of Platte River, is responsible for an ownership allocation of the associated carbon emissions. As of 2014, this ownership, or equity, share was 47 percent. FORT COLLINS ENERGY CHARACTERIZATION As a framework for understanding the challenges facing the envisioned transition of the community’s energy systems, the following charts illustrate the diversity of Fort Collins energy sources and end use sectors in both primary energy and greenhouse gas metrics. Electricity is the largest single energy use source of GHG emissions, followed by transportation fuels and natural gas used for heating and industrial processes. By sector, residential emissions are followed by industrial and commercial respectively but ground travel is higher than any of the building sectors (2014 data). 2.1 Packet Pg. 27 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 6 Fort Collins Energy Profile (2014 data) Greenhouse Gas Emissions Profile (2014 data) Primary Fuels End Use Energy End Use Sector Renewables (6%) Coal (17%) Natural gas (38%) Petroleum (40%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Transportation Built Environment Transportation Electricity (23%) Natural gas (38%) Gasoline & Diesel (40%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Residential (25%) Commercial (14%) Industrial (21%) Transportation (40%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Energy Percent Primary Fuels End Use Energy End Use Sector Coal (53%) Natural gas (19%) Petroleum (28%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% GHG Emissions Percent Electricity (50%) Gasoline and Diesel (28%) Natural Gas (19%) Waste (3%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% GHG Emissions Percent Transportation (28%) Residential (25%) Industrial (22%) Commercial (20%) Waste (3%) Other (2%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% GHG Emissions Percent 2.1 Packet Pg. 28 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 7 POLICY OBJECTIVES BUILT ENVIRONMENT The building sector is Fort Collins’ top energy consumer and contributor to greenhouse gas emissions. Efficiency measures are generally the lowest cost resource available, compared to traditional or renewable supply-side choices. For new construction, building right the first time locks in energy savings and offers benefits for decades to come. By reducing the overall demand for energy, efficiency also makes all supply-side options more feasible and cost effective. As the carbon intensity of the electricity supply reduces over time, electrification of heat and process loads from natural gas becomes an additional strategy for reducing emissions from the built environment. IMPROVE PERFORMANCE OF NEW BUILDINGS ವ Adopt and enforce current International Energy Conservation Codes (IECC) within one year of issuance, with local amendments, advancing efficiency, indoor environmental quality, installed performance and readiness for building-scale renewable energy and demand response. ವ Promote above-code building energy performance through market and incentive approaches. IMPROVE PERFORMANCE OF EXISTING BUILDINGS AND PROCESS ENERGY USE ವ Support the reduction of natural gas use in the community through efficiency programs, information resources and partnerships with other organizations to achieve targets in alignment with the CAP. ವ Support the continuous energy use reduction in all building types and industrial processes through verifiable and cost-effective efficiency and conservation programs. As a percentage of community electricity use, achieve incremental annual electric portfolio savings of efficiency and conservation program savings of:1 Year Savings Target ದದ % 2015 1.5 2016 1.75 2017 1.75 2018 2.0 2019 2.0 2020 2.5 1 Incremental is defined as “new” savings achieved in a given year; maintaining existing behavioral program savings counts towards the total community annual results, but not towards the incremental target. In 2013 and 2014, incremental portfolio savings was 1.5% and total portfolio savings was 2.2%. The reference basis of the annual percentage energy use savings target is the average of community electric energy use for three years (including the target year). The cost effectiveness of the efficiency portfolio is defined via the Program Administrator Test, where utility incentive and administration costs for lifetime energy savings is less than the blended electricity supply price (or natural gas unit price where applicable). Cost effectiveness is to be calculated on the overall program portfolio. 2.1 Packet Pg. 29 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 8 ELECTRICITY SUPPLY AND DISTRIBUTION Design and maintain an electricity distribution infrastructure to facilitate a diverse, efficient, economical, reliable, clean and secure transition to higher levels of renewable energy sources, both distributed and utility scale. This energy system includes infrastructure at the customer, local distribution and regional generation and transmission scale. The infrastructure also must deploy communication and control technology to manage the balance of distributed supply resources and customer demand. Since both the community waste stream and energy resources contribute to the community’s greenhouse gas emissions, waste-to-energy may become a viable resource in the future. Fort Collins should seek opportunities to include electricity storage, as it is expected to become a transformational component of the electricity supply system. ELECTRIC SUPPLY RESOURCES The following targets support objectives related to resource diversity and increasing amounts of renewable energy sources2: ವ Increase the diversity of the electricity supply by reducing the percentage contribution of coal-derived electricity to less than 60 percent by 2020 ವ Increase the overall amount of renewable energy to a minimum of 20 percent by 2020 ವ Increase the amount of distributed renewable energy to provide a minimum of 2 percent of community electricity requirements by 20203 ವ Seek opportunities for local distributed generation resources such as combined heat and power and biomass in alignment with the CAP Framework ವ Coordinate with Platte River to achieve the strategic plan target of a 20 percent reduction in Platte River greenhouse gas emissions by 2020 RELIABILITY Demonstrate the high reliability of the Fort Collins electric system by maintaining annual reliability metrics of: ವ Average System Availability Index (ASAI) greater than 99.9956 percent ವ Customer Average Interruption Index (CAIDI) less than 45 minutes ವ System Average Interruption Frequency Index (SAIFI) less than 0.66 2 Qualifying renewable resources as defined by the Colorado Renewable Energy Standard: “Renewable energy resources” are biomass (plant matter, animal waste, methane from landfills and wastewater treatment), solar, geothermal, wind and new hydro with a nameplate rating of 10 megawatts (MW) or less. 3 Distributed renewable generation as defined by the Colorado Renewable Energy Standard: Retail distributed generation is, by definition, customer-sited (behind the meter) and also subject to an annual onsite energy consumption net metering cap of 120 percent. Wholesale or non-customer sited, distributed generation is defined as any renewable electric resource less than 30MW in nameplate capacity that is not retail distributed generation. 2.1 Packet Pg. 30 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 9 ELECTRIC DISTRIBUTION The electric distribution system is a key asset in the long-term vision of the Energy Policy, supported by the following objectives: ವ Complete the Electric Distribution Asset Management plan by the end of 2016. The distribution system plan should include addressing proposed distributed generation and demand response targets. ವ Increase the available peak dispatch capacity of the demand response system to 5 percent of annual peak loads by 2020. ವ Develop plans for demand response integration with Platte River and the other cities to improve and understand demand response values as a system resource. Review the demand response capacity targets on an annual basis with regards to system value and pricing. ವ Develop distribution modeling capabilities to support the asset management plans and grid modernization for distributed resource management. ವ Participate in research, development and demonstration efforts to remain at the forefront of emerging technologies and holistic innovative solutions. TRANSPORTATION AND LAND USE Transportation is vital to our community, enabling us to move from where we live to where we work, learn, shop, recreate, and play. Fort Collins’ transportation is fueled almost entirely by gasoline and diesel, accounting for over half of our city’s total energy expenses, over 40 percent of total energy consumption, significant amounts of local air pollutants (NOx, SOx, and particulates) and 28 percent of GHG emissions. The City’s land use and transportation policies are established by City Plan, the Land Use Code and the Transportation Master Plan. These plan documents strive to foster and sustain a “connected community” that maintains high levels of mobility, while reducing the environmental, social and economic costs of our transportation systems. Since transportation demand and the feasibility of walking, cycling and public transit are determined by the mix, layout and density of land uses, as well as population size, the City should continue enhancing its system of integrated land use and transportation planning. In order to responsibly manage energy resources, improve air quality and reduce GHG impacts associated with transportation and land use, this Energy Policy encourages an emphasis on the following objectives: ವ Reduce total vehicle miles travelled (VMT), while maintaining mobility options, with a goal to reduce VMT by 10 percent (below 2005 levels) by 2020 ವ Reduce fossil fuel use per VMT In support of these objectives, the Energy Policy recommends: ವ Development of VMT annual estimation techniques which support the objectives of City transportation and energy policies prior to the next revision of the Transportation Master Plan DEVELOPMENT, REDEVELOPMENT AND PARKING Fort Collins is expected to substantially grow in population over the timeframe of the Energy Policy. “Smart growth” refers to transportation and land use planning that emphasizes urban density, mixed-use residential, commercial and recreational areas, multimodal transportation systems and pedestrian and bicycle-friendly streets. It is expected that Fort Collins residents will choose to drive less if the places where they live, work, learn and play are accessible in ways other than by 2.1 Packet Pg. 31 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 10 automobile. The City Plan and Transportation Master Plan contain many smart growth policies that advance the objectives identified by this Energy Policy. With Fort Collins anticipated growth, greater emphasis on smart growth is essential to minimizing transportation related energy impacts. This Energy Policy recommends increased efforts to implement smart growth related initiatives that ensure effective application of these principles. Parking and congestion issues are emerging considerations that influence low-impact transportation options. This Energy Policy encourages continued assessment of the public costs of parking and automobile congestion in developing or amending parking and traffic congestion policies. In order to effectively manage the expected energy impacts of on-going growth and development, the Energy Policy recommends: ವ Developing energy related metrics for projects going through the development review process in coordination with the CAP implementation plan and prior to the next update of the City Plan MULTIMODAL TRANSPORTATION In order to advance the objectives of reduced VMT and reduced fossil fuel use per mile, the Energy Policy recognizes the importance of alternatives to automobile travel: walking, biking, carpooling and public transit. Through City Plan and the Transportation Master Plan, the City should continue encouraging the use of these modes through infrastructure and programming. In addition to City Plan and the Transportation Master Plan, other planning documents such as corridor plans, area plans and modal plans, establish policies and action items at varying scales. Many of these plans, such as the 2011 Pedestrian Plan, the 2014 Bicycle Master Plan and the 2009 Transfort Strategic Operating Plan, advance Energy Policy objectives as they relate to transportation system energy use. The Energy Policy encourages implementation of existing plan elements that contribute to achievement of these objectives. Information technologies are transforming how people live and how cities function. Mobile communication devices in particular, help commuters with smart trip planning by providing access to transit routes and schedules, bike- and car- sharing availability and traffic conditions. This Energy Policy encourages continued investment in intelligent transportation systems, either through City-crafted trip-planning software, or by releasing transportation data to the public so application developers can create trip-planning products for the market. In order to more effectively manage the opportunities for mitigating transportation energy impacts, the Energy Policy recommends: ವ Developing metrics reflecting multi-modal transportation use prior to the next revision of the Transportation Master Plan FUEL-FFFICIENT AND ELECTRIC VEHICLES Increased adoption of more fuel-efficient and electric vehicles in Fort Collins means the reduction of petroleum fuels and their associated negative consequences. The City can help residents with data regarding the advantages of high-efficiency, hybrid and electric vehicle choices and by promoting the development of clean vehicle fueling infrastructure. As the carbon intensity of the electricity supply reduces over time, electric vehicles become an essential strategy for reducing emissions from ground transportation. Next steps include: ವ Develop metrics for fleet average fuel efficiency and the number of electric vehicles in Fort Collins prior to the next revision of the Transportation Master Plan 2.1 Packet Pg. 32 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 11 ELEMENTS OF THE TRANSPORTATION MASTER PLAN PERTAINING TO ENERGY The current Transportation Master Plan states these principles which further support this Energy Policy: ವ Reduce congestion and vehicle idle time ವ Integrate alternative vehicle technology and advances ವ Enhance travel corridors to improve transportation efficiency, as well as enabling alternative transportation modes ವ Improved access to bicycle and pedestrian trails ವ Create fixed transit corridors to promote transit-oriented development The Transportation Master Plan is periodically amended and updated to address changing conditions and policies. The Transportation Master Plan should advance Energy Policy objectives by considering these principles during future updates: ವ Reduce community VMT ವ Reduce fossil fuel use per VMT ವ Support pedestrian and bike-friendly layout ELEMENTS OF LAND USE PLANNING PERTAINING TO ENERGY City Plan and the Land Use Code are periodically amended and updated to address changing conditions and policies. City Plan and the Land Use Code should further advance Energy Policy objectives through the consideration of these principles during future updates: ವ Regularly review the Land Use Code to support high performance development projects and local renewable energy generation and storage ವ Continue the advancement of land use principles promoting infill, redevelopment and additional planning initiatives ವ Explore ways to enable and encourage property owners to maximize the use of shared resources such as combined heat and power, geo-exchange and energy storage 2.1 Packet Pg. 33 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 12 IMPLEMENTATION PRINCIPLES The follow principles provide guidance for developing strategies to achieve Energy Policy goals, while supporting community values. Efforts to achieve the goals should leverage existing programs and services to maximize participation among Fort Collins residents, businesses and institutions. SYSTEMS THINKING Energy is generated, transmitted and consumed through complex, interrelated systems. As such, the decisions made on any component must be evaluated by their impacts on the other related components. The economic, environmental, social and operational aspects of these components should be evaluated as systems from source to consumption. The Energy Policy encourages a systems approach in looking at the interactions of utilities, buildings, land use planning and streets. Additionally, it promotes the provision of energy infrastructure beyond electricity and natural gas across traditional project and parcel boundaries. This infrastructure could extend to thermal energy systems and electrical energy storage. PARTNERSHIP The City has a wide range of local and regional energy partners. These partnership resources can best be used through continued engagement, collaboration, data-sharing and program development. • Platte River: Platte River provides generation and transmission level electric services for Fort Collins, Loveland, Longmont and Estes Park, and is owned jointly by the four cities. Platte River is an essential partner in support of Fort Collins’ Energy Policy goals, including electricity supply and customer efficiency programs and services. • Platte River member cities: The four Platte River member cities each have unique needs and philosophies to meet their community goals. There are many opportunities to work together to build strong, efficient and clean electrical energy systems in a cost-effective manner. Future electricity markets may provide regional opportunities to support accomplishing the goals of the Energy Policy. • Educational and research institutions: Colorado State University is one of the City’s largest customers and a leading energy research institution. • Xcel Energy: Xcel provides natural gas to city residents and businesses and electric services to residents with important coordination needs relating to data exchange, reporting and customer efficiency efforts with a regional approach. • Private enterprise: Collaboration and public-private partnerships will be an important avenue in accomplishing Energy Policy goals through research, development, demonstration and implementation efforts. • Other governmental organizations: The City should continue to partner with other governmental organizations such as the Poudre School District, U.S. Department of Energy, the Environmental Protection Agency, the Colorado Energy Office and Larimer County. • Community organizations: Fort Collins residents acting through formal and informal organizations are key stakeholders and provide an important engagement opportunity. 2.1 Packet Pg. 34 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 13 COMMUNITY ECONOMICS LOCAL ECONOMIC HEALTH This Energy Policy aligns with Fort Collins’ leadership in the transition to a clean-energy economy. The City has the potential to stimulate local innovation and entrepreneurial activity, attract new partners and outside capital and encourage funding for cutting edge research and development. The City of Fort Collins can help facilitate projects to stimulate private industry to achieve policy goals while also improving the local economy. The City also should be a leader in deploying efficiency, conservation and renewable energy in its own operations to demonstrate the feasibility of strategies and tactics. The community can benefit from the creation of quality jobs from the implementation of strategies in support of Energy Policy goals. FORT COLLINS UTILITIESLIGHT & POWER Fort Collins Utilities has supported our local economy with highly reliable service and a history of low and stable electric rates. Going forward, competitive rates should be combined with energy efficiency and conservation programs to result in low and sustainable energy bills, while supporting economic activity. Fort Collins Utilities’ business activities also support the local economy as a direct and indirect employer and as a contributor to the City’s general fund, by leveraging investment in energy efficiency and renewable energy and by supporting research and demonstration projects. It is important to maintain the financial health of the Fort Collins Utilities Light & Power service unit to support the vision of the Energy Policy. The century-old model of the electric utility is rapidly changing due to technological and market forces. Fort Collins Utilities must be allowed to lead this change to the community advantage. At the same time, Fort Collins is a member owner of Platte River Power Authority. Changes from the existing centralized power generation model toward distributed and variable resources should be developed in coordination with Platte River, considering overall system impacts and operations. Light & Power should seek to pilot new services and models for existing services to explore the best ways to take advantage of new opportunities to advance this Energy Policy and maintain the Utilities’ financial health. ELECTRICITY PRICING Electricity pricing provides a direct connection for citizens and businesses to relate to the community energy system. Fort Collins Utilities should provide predictable long-term directions with regards to rate structures and pricing. The pricing of electrical energy should strive to balance the following principles: ವ Reflect the short-term and long-term costs, both direct and indirect, of generating and delivering electricity ವ Demonstrate equity and fairness by distributing costs over the customer base in proportion to the cost of service ವ Consider both per unit costs (rates) and total bills in comparisons of competitiveness and affordability ವ Promote efficiency and conservation with meaningful price signals ವ Set a clear, public, long-term direction for electric rates with gradual changes ವ Develop rates in the context of long-term asset planning, fixed cost recovery and financial stability ವ Incorporate robust stakeholder engagement 2.1 Packet Pg. 35 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 14 INFORMATION AND EDUCATION Fort Collins Utilities and other City departments should continue to facilitate participation in programs and services through education and partnerships that build trust with community stakeholders and the public to enhance Utilities’ reputation as a world-class utility and the best source of energy information. The City should continue to be a credible and effective source of information and education for the community with regards to energy issues and an objective of fostering a resilient and engaged community. Key outcomes include: ವ Provide citizens and business owners with information on energy sources and related financial and environmental data ವ Provide citizens and business owners tailored options for managing, producing and reducing energy use ವ Create collaborative and strategic relationships within the community PRIVACY AND SECURITY Fort Collins Utilities will continue to: ವ Institute policies, procedures and equipment to secure its distribution, generation, control and communication systems against misuse ವ Maintain privacy and security policies relating to personal data so customers are assured of privacy and security of their data and informed of how their data may be used 2.1 Packet Pg. 36 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Page | 15 CONNECTIONS AND METRICS CONNECTIONS TO OTHER PLANS AND PROGRAMS Energy Policy goals are closely related to the goals, principles and policies in other City plans and programs and with those of Platte River. For example, GHG reduction, efficiency, conservation and reducing air, water and soil pollution are common to a number of plans and programs. By emphasizing the alignment between programs, the City can identify opportunities to implement actions that benefit multiple programs simultaneously. The plans and programs that directly address or are closely connected to energy include: ವ Climate Action Plan ವ Platte River Power Authority Strategic and Integrated Resource Plans ವ City Plan ವ Transportation Master Plan ವ Building and land use codes ವ Water Conservation Plan ವ Green Building Roadmap ವ Road to Zero Waste ವ Air Quality Plan ವ Economic Health Strategic Plan ವ City Strategic Plan ವ Social Sustainability Strategic Plan IMPLEMENTATION AND METRICS City and Utilities resources for implementation of the Energy Policy will be managed through the normal and customary processes for budgeting, appropriations and rate setting. The Utilities Executive Director will provide the City Manager, Energy Board and City Council with an annual status report on the Energy Policy. The report will document progress on the goals and objectives, costs and benefits of policy initiatives and updated strategic planning. POLICY REVIEW The Energy Policy will be reviewed and revised at five year intervals with the next review concluding in 2020. If necessary, more frequent reviews may be recommended by the Energy Board or City Council to adapt to significant goal changes or to align with other City plans. 2.1 Packet Pg. 37 Attachment: 2015 Fort Collins Energy Policy (Proposed) (3568 : 2015 City of Fort Collins Energy Policy) Energy Policy – 2014 Annual Update June 2015 ATTACHMENT 2 2.2 Packet Pg. 38 Attachment: 2014 Fort Collins Energy Policy Update (3568 : 2015 City of Fort Collins Energy Policy) Fort Collins Utilities 1 Energy Policy Update This report provides an update of 2014 activities and results related to the City of Fort Collins Energy Policy, adopted in January 2009. The primary goals of the Energy Policy are to sustain high-system reliability and to contribute to the community’s climate protection goals and economic health. The Energy Policy 2050 vision is to ensure highly reliable, competitive, carbon neutral electricity supplies, managed in a sustainable, innovative, responsible and efficient manner for the Fort Collins community. The Energy Policy Annual Update reviews progress made to date in the primary goal areas of the policy: reliability, climate protection, economic health and the City’s collaboration with Platte River Power Authority (Platte River). The Energy Policy and most recent annual update are available at fcgov.com/utilities/what-we-do. Key outcomes from implementation of the Energy Policy in 2014 include: x Community carbon emissions from electricity use were 6.6% less in 2014 compared to the baseline year of 2005. x Electricity use per capita, for all sectors, has decreased by over 13% from 2005 to 2014. x Customers continued to receive highly reliable electric service, as measured by an average system availability index of 99.9951%. x Avoided annual carbon emissions of over 245,000 metric tons from Energy Policy related programs. x Non-carbon resources provided 24.7% of electricity (18.3% from hydro, 6.2% from wind and 0.2% from solar). x Fort Collins has already met the 2015 requirements of the Colorado Renewable Energy Standard of a minimum of 6% renewable energy. x Efficiency programs generated over $27 million in local economic benefits through reduced utility bills, direct rebates and leveraged investment. Major 2014 activities and highlights: x Utilities continued implementation of the Advanced Meter Fort Collins project to modernize the distribution system. x Customer electricity savings from efficiency programs totaled over 32,600 megawatt- hours (MWh), or 2.2% of the community’s annual usage. This is equivalent to the annual electric use of over 3,600 typical Fort Collins homes. x Efficiency programs saved electricity with a lifecycle cost-of-conserved energy of 2.2 cents per kilowatt-hour (kWh), compared to an average wholesale electricity cost of 5.4 cents per kWh. x The Peak Partners demand response program began with the deployment of 160 wi-fi thermostats in summer 2014. Peak Partners is expected to deploy over 2,500 thermostats and 2,800 water heater controllers by the end of 2016. x Photovoltaic (PV) capacity additions totaled 958 kW (620 kW residential and 338 kW commercial). Total solar capacity at the end of 2014 was 2,625 kilowatts. x Fort Collins Solar Power Purchase Program (SP3) projects began to come on line in 2014 and will continue into 2015. x The Riverside Community Solar Project moved forward in 2014 with construction expected in the second quarter of 2015. 2.2 Packet Pg. 39 Attachment: 2014 Fort Collins Energy Policy Update (3568 : 2015 City of Fort Collins Energy Policy) Fort Collins Utilities 2 x Fort Collins Utilities, Platte River Power Authority and the other member cities combined efficiency programs for both homes and businesses into a common structure called “Efficiency Works.” The collaborative approach improves the effectiveness of the programs and provides a larger common marketplace. x Platte River contracted to purchase the output of 60 megawatts of new wind energy from the Spring Canyon project in eastern Colorado. 2.2 Packet Pg. 40 Attachment: 2014 Fort Collins Energy Policy Update (3568 : 2015 City of Fort Collins Energy Policy) Fort Collins Utilities 3 2.2 Packet Pg. 41 Attachment: 2014 Fort Collins Energy Policy Update (3568 : 2015 City of Fort Collins Energy Policy) Fort Collins Utilities 4 2.2 Packet Pg. 42 Attachment: 2014 Fort Collins Energy Policy Update (3568 : 2015 City of Fort Collins Energy Policy) Energy Policy 2014 Annual Update, Appendix June 2015 Fort Collins Utilities 5 Appendix: Energy Policy Metrics Scorecard The Energy Policy references goals that include specific objectives and metrics in various categories. The following tables summarize status, progress and accomplishments in 2014 related to each goal and supporting objectives. The tables use the following stoplight color coding to indicate progress and status: Achieved or on-track to be achieved Progress towards being achieved Not achieved or at risk for not being achieved For more information regarding any aspect of this annual update, call Fort Collins Utilities at (970) 221-6700, e-mail utilities@fcgov.com or TDD (970) 224-6003. Goal 1: Provide Highly Reliable Electric Service Objectives and Metrics Progress Provide and maintain a highly reliable system. Average System Availability Index (ASAI) greater than 99.9956% 99.9951% Customer Average Interruption Index (CAIDI) less than 45 minutes 68 minutes System Average Interruption Frequency Index (SAIFI) less than 0.66 0.37 interruptions Manage peak loads to reduce demands on the distribution system, optimize infrastructure investment and reduce purchased power costs. Maintain energy efficiency and demand side management programs targeting peak loads. Peak demand savings from 2014 efficiency programs was approximately 4.8 MW. The Efficiency Works Business program targets peak load reduction. Custom projects offer the option of calculating rebates based on peak demand reductions. Residential programs also contribute to peak load reductions. Increase the power managed by load management, smart grid and distributed generation to at least 5% of 2005 system peak demand by 2015 and at least 10% by 2020. Combined residential and commercial maximum realized load reduction for 2014 was 3.5 MW, or 1.2% of 2014 peak demand. The weather for summer 2014 was relatively mild, contributing to the lower demand response results for the year. 2.2 Packet Pg. 43 Attachment: 2014 Fort Collins Energy Policy Update (3568 : 2015 City of Fort Collins Energy Policy) Energy Policy 2014 Annual Update, Appendix June 2015 Fort Collins Utilities 6 Goal 2: Support Community Greenhouse Gas Reduction Goal (20% Reduction Below 2005 Levels by 2020 and 80% Reduction by 2050) Objectives and Metrics Progress Report Light and Power Greenhouse Gas (GHG) emissions inventory and results of reduction efforts. Light and Power aggregate 2014 emissions (ownership and operational control) GHG Emissions Inventory (metric tons) 2005 2014 Percent Change Ownership Boundary 1,725,390 1,560,082 -9.6% Operational Boundary 1,198,083 1,119,271 -6.6% Gross Energy Policy related GHG reductions 245,267 metric tons Continuously reduce energy use through verifiable energy efficiency and related programs. Achieve annual energy efficiency and conservation program savings of at least 1.5% of annual energy use (based on a three-year average history). Customer (gross) energy efficiency program savings was 32,953 MWh in 2014, 2.2% of the community’s electric use. Utility savings (net) was 26,426 MWh, 1.8% of the community’s electric use. Pursue and secure renewable energy investments by balancing environmental benefits, cost effectiveness, impact on electrical system operations and local economic benefits. Maintain a minimum fraction of renewable energy in compliance with State of Colorado requirements. A total of 6.0% of renewable energy per the rules of the Colorado Renewable Energy Standard (5.4% from rate-based wind purchases from Platte River 0.2% from local solar which leverages a 3x multiplier under the standard). Voluntary purchases from the Green Energy Program are not included. Offer voluntary customer-focused renewable energy programs. 12,989 MWh from Green Energy program Increase the contribution of renewable energy to reach the 20% by 2020 carbon reduction goal, after accounting for the contributions of resource mix, energy efficiency, conservation, minimum renewable energy requirements and voluntary renewable energy programs. 6.4% total renewable energy (6.2% from wind resources and 0.2% from local solar). Hydro resources provided 18.3% for a total non-carbon emitting portfolio of 24.7%. 2.2 Packet Pg. 44 Attachment: 2014 Fort Collins Energy Policy Update (3568 : 2015 City of Fort Collins Energy Policy) Energy Policy 2014 Annual Update, Appendix June 2015 Fort Collins Utilities 7 3. Enhance Local Economic Health Objectives and Metrics Progress Maintain sufficient revenues through biennial budget planning for on-going operation and maintenance of the electric system and meet the projected requirements of the asset management plan. Operate and maintain regionally competitive electric service that promotes energy efficiency and conservation. Maintain competitive electric rates. As of July 2014, Fort Collins typical residential customer bills were in the lowest 16% of 55 Colorado utilities reporting to the Colorado Association of Municipal Utilities (CAMU). Maintain efficiency and conservation programs to help keep customers’ energy bills affordable. Affordability of Utilities electric service (percentage of area median income AMI): x Average Residential Customer: 1.2% of AMI x Low Income Customer: 1.5% of AMI x Very Low Income Customer: 2.1% of AMI x Extremely Low Income Customer: 3.9% AMI Fort Collins electric and natural gas affordability for average residential customer: 2.1% of AMI. Leverage Utilities programs to create local and positive economic impacts. Strive to invest climate improvement monies locally in programs that have long-term positive impacts. Efficiency programs in 2014 generated over $27 million in local economic benefits through reduced utility bills, incentives, leveraged investment and indirect activity (e.g. including the effects of additional available spending from reducing utility bills and benefits from efficiency related local activity). 4. Work closely with Platte River Power Authority members and staff to further City of Fort Collins’ Energy Policy goals Objectives and Metrics Progress Develop closer working relationships with the other Platte River cities. With other member cities, provide policy guidance to Platte River to: Develop long-term planning policies for Platte River that facilitate innovative solutions to future energy challenges. Platte River continued work on their strategic and resource plans in 2014 with the intent that it be updated as detailed analyses of future scenarios are completed, new technologies evolve, and market opportunities develop. The plan is guide for developing an adaptive strategy to sustain Platte River Power Authority and the communities we serve for the next forty years and beyond. www.prpa.org/sources/strategic-plan/ Diversify the portfolio of energy sources that serve the City. Platte River executed an agreement to purchase an additional 60 megawatts of capacity from a wind farm to be constructed in eastern Colorado by the end of 2014. 2.2 Packet Pg. 45 Attachment: 2014 Fort Collins Energy Policy Update (3568 : 2015 City of Fort Collins Energy Policy) Energy Policy 2014 Annual Update, Appendix June 2015 Fort Collins Utilities 8 Table 1: Fort Collins Utilities DSM Programs, Budgets, and Outcomes (2014) Note: ND = no data 2.2 Packet Pg. 46 Attachment: 2014 Fort Collins Energy Policy Update (3568 : 2015 City of Fort Collins Energy Policy) ATTACHMENT 3 2.3 Packet Pg. 47 Attachment: Energy Policy Community Outreach Summary (3568 : 2015 City of Fort Collins Energy Policy) Environmental Services 215 N. Mason PO Box 580 Fort Collins, CO 80521 970.221-6600 fcgov.com/environmentalservices MEMORANDUM To: Mayor and City Councilmembers From: John Shenot, AQAB Chair CC: Air Quality Advisory Board Date: August 29, 2015 Re: Recommendations Regarding the Energy Policy Update ___________________________________________________________________________________ At our August 17, 2015 meeting, the AQAB reviewed a draft of the Energy Policy update that Council will consider at a September work session. The AQAB appreciates having had the opportunity to review and comment on the draft Energy Policy Update, and we commend the Energy Board on their efforts. The AQAB strongly supports the updated Energy Policy and is pleased to see a Policy that is forward-looking and that acknowledges the significant air quality and public health impacts associated with energy use. This is the kind of policy Fort Collins needs to adopt and embrace in order to meet the expectations and hopes of our community. We recommend adoption by City Council of an Energy Policy that is substantially the same as the version we reviewed and discussed on August 17, 2015, but with additional consideration of our comments (below) that were delivered to the Energy Board. x Putting additional emphasis on Energy Policy objectives not related to the Climate Action Plan (CAP), or at least including some justification for why the CAP objectives are so much more prominent than other objectives. x Placing greater emphasis on the City’s role as a leader in developing, demonstrating and implementing new ideas and best practice solutions to energy challenges (in the Vision Statement and perhaps in other elements of the plan as well). x Adding figures that show energy production and use, rather than (or in addition to) greenhouse gas (GHG) emissions, in the section on Fort Collins Energy Characterization. x Adding “less carbon-intensive fuels” and “smart growth” to the Transportation and Land Use bubble in the Fort Collins Energy Policy chart in the Background section. The Goals bubbles could also overlap one another to represent their interconnectedness. x Providing current performance data whenever goals are expressed, to provide a frame of reference. x Including specific goals for each policy objective (e.g. electric vehicle use). These goals should be at least as ambitious as those required to achieve the goals of the CAP framework through 2030, which is not always clearly the case (e.g., building efficiency standards). x Where possible, prioritizing the policy objectives (with justification) to indicate which are most essential for achieving the state vision of the Energy Policy. This is important in case the City cannot, for financial or other reasons, pursue all of the listed objectives immediately. x Including goals and metrics for energy storage. x Discussing traffic congestion in a broader context than just parking (e.g., congestion at schools, train crossings, traffic lights). x Explaining, at least briefly, the specific connections between the Energy Policy and the other plans and programs listed. The AQAB stands ready to explain or discuss any of these recommendations should Council members have any questions. 2.3 Packet Pg. 48 Attachment: Energy Policy Community Outreach Summary (3568 : 2015 City of Fort Collins Energy Policy) Combined Notes for Energy Policy Board Outreach April – July 2015 Notes by Lisa Rosintoski, John Phelan, Peter O’Neil Transportation Board x Electric vehicles burning coal in rawhide versus gasoline car burning here any gaining between the two due to generation being more renewables electric vehicles would be better in our community x Transmission loss from rawhide to battery – losses 2.0% on transmission and 2.5% of distribution x Solar cells on roof if charging own electric car more efficient x Development of metrics for VMT as awareness to not get ahead of TMP x Given a daunting task, EP super data driven, starting point is good high level data across all areas of VMT to bring connectivity to TMP and EP from scientific to esoteric align metrics between plans policies x Suggest APP board to be presented x Integrated with VMT multi-model shifts alignment is good x Metrics useful for transportation need more precise estimation tools to quantify VMT going forward x Groups working on senior transportation lose ability to drive land use planning multi-model when can’t drive any longer keep thinking about with energy. x Higher classification of ozone is worse than anticipated vehicles play a role x External impact of regulatory changes; local ozone compliance (JOHN to review) x VMT translated to pollution and carbon dioxide impacts to ozone x EB work with transportation board on VMT opportunities Air Quality Board x CAP so fuzzy, interested in seeing the specific pathways (person was part of CAC) x Modeling, when starting programs and when ramp up. Timeframes for cost, and feasibility x Energy Policy plan should we ramp up energy efficiency. Since the framework is so big don’t know how focused Energy Policy can be. x What does mean existing building versus new building what have to do to achieve. What policies need to push. x Electrification long-term strategy emissions associated with GHG needs to be included x City Energy Policy sources of energy emissions associated with them are not customer generation through diesel and wood tend to have higher emissions than utility delivered power. If a broad policy would like to see those overlooked fuels addressed x Focus on reducing energy consumption overall through VMT, bikes, trails, etc. 2.3 Packet Pg. 49 Attachment: Energy Policy Community Outreach Summary (3568 : 2015 City of Fort Collins Energy Policy) x What other options allow individuals to have creative solutions for on-site generation (liked Intel Solar car ports) x Need to understand “Why” of CAP x What does stakeholder engagement mean x Provide Air Quality a draft policy for review for an endorsement. Planning and Zoning Board x What is carbon sequestration? x What level do you want for the development to evaluate carbon impact’s x What is carbon impact of development? Get appropriate staff and timeframe to address for a metric x Required to do a sustainability assessment can do at sub-level next iteration of City Plan may evaluate entire area for carbon impact. Land use patterns already address, may pursue efforts to maximize solar impacts. x Land use code a potential opportunity. Is the efforts more painful to developers etc. with more requirements? x Cause and effect standpoint neighborhood to go over certain level development may have to credit to offset? Figure energy impact based on impact some sort to draw carbon footprint. x Electric utility accounting so we may use less here but rawhide is still burning on surplus sales x Platte River is elephant in the room with coal being fuel source for Fort Collins x Since coal is low on world class to what extent are we partnering with a different source of electric power such as gas bridge fuel x Is using more natural gas part of review by PRPA x Building code and conservation code new version 3 years amendments possibility to manage but building reach a point of no return x Heat pump included in code classified as electric heat x Can’t use electric heat as primary heat source maintain 68 degrees x When amendments are made make sure requirements are complimentary, such as (code review) x Looking for new development, infill and refill more issues with x Roof top solar great opportunity and home storage need to manage more incentive with roof top solar x FCU partner with PRPA and Tri-State on solutions that manage the evolution of how utility provides services x Performance of buildings going forward need to be managed as part of building codes to compliment reaching the goals Economic Advisory Commission x How renewable rate ranks with other cities competitively x Education for goals within plan for job opportunities with people skilled to manage 2.3 Packet Pg. 50 Attachment: Energy Policy Community Outreach Summary (3568 : 2015 City of Fort Collins Energy Policy) x Never seen renewables and energy supply, rawhide right here and see it. Big footprint. People don’t see so they think all green. There are consequences seeing a picture of how many wind turbines, where going to be (how it has changed the natural landscape). Nothing is free, not environmentally friendly. Go from coal and gas, see fracking. Now see solar and wind and what it really looks like. x See impacts of transmission lines so people are aware x Conversation on climate action “how any energy policies help with reliability’; important economic conversation large manufacturers rely on energy to manage product development. That is part of sustainability conversation but managing business development how much of changing infrastructure ends up in land-fill or issues Natural Resources Advisory Board x Do you have any plans long range view to provide energy storage x Have projected cost of electricity to consumer x Does natural gas figure in scenarios x Structured logical job is there anything some people may find surprising x Peak partners subscriber think long and hard if wanted to do that based on hackers x Have you seen reduction in use based on AMFC and access to timely data x Ramping efficiency one issue considering thinking about increase costs for new developments; requiring certain level of efficiencies housing market x Targeting specific groups most impact energy efficiency can be achieved x Carbon sequestration how thinking about that going forward x Proposed metrics targets needs more clarity Chamber of Commerce, Local Legislative Affairs Committee x Include cost for objectives/tactics that provide awareness x What is the “real vision”? o There is a need to take advantage of evolving technology. o Carbon neutral does not mean fossil fuel elimination. o Food chain does not support the budget. o Need more data on Economic Health. x City Government fixated on inspirational goals – impossible to achieve versus measurement/verification x Staff commits to follow-through with the annual report, provide analysis that shows if achieving the goals or the need to change the goals x Lack of business represented on Energy Board Key Feedback: 1. Represent costs!!! 2. Staff can better represent goals by continuously performing plan, do, check, act with the annual reporting 3. Vision statements between CAP and EBP contradicts (pick one), carbon neutral, or no fossil fuels 4. Role of technology within vision 2.3 Packet Pg. 51 Attachment: Energy Policy Community Outreach Summary (3568 : 2015 City of Fort Collins Energy Policy) 5. Loss of revenue; there is an economic side 6. Quantify what we can do, at what cost with metrics 7. Structure with incentives versus mandates = carrot vs whip 8. Need a member of business community on Energy Board 9. Is this draft Energy Policy written in stone, impossible to change at this time? Senior Board x Must take into account the changing demographic of seniors which has been identified as 1 in 5 in the next five years for the Fort Collins area. What programs are designed to recognize less travel but staying home and turning up the heat. x Must keep in mind the ease and awareness for transportation system. New York has schedules that let’s you know times and routes. x Understand ozone impacts from GHG x Demand response worrying to seniors we are home don’t want AC turned down. Also may be health reasons that senior’s would not participate. x Efficiency focus, has experienced overloads in complex notice wiring may be an issue with load that is occurring. Suggested contacting Utilities for program to review facility efficiency. x Mobility to reduce VMT east west is awful. Max is wonderful. Explaining to people to understand all issues. x Affordable housing summit still do not include transportation in agenda considering for location of senior facilities that is supported by transit. x East coast versus mass transit in Colorado if transit came more than more people would use. May more frequent, smaller buses. x Advertise transfort like did for max; time reads for all transfort. Start with major connectors and work out. x Demand for transport really low x Subsidize older homes for better insulation need to work with people on what they can do is more user friendly Affordable Housing Advisory Board x Board was interested in how to measure utility cost affordability o Consider percentage of income approach o Consider the cost of construction with regards to building requirements x Beware of diminishing returns for increasing building energy requirements x Would like more information regarding low income programs and services x Would like to see City incentives/fees/development explicitly support infill x Consider ways to provide incentives for DIY citizens x Look at all levels of housing (housing affordability versus affordable housing) x Consider focusing on multi-family appraisal values for energy improvements 2.3 Packet Pg. 52 Attachment: Energy Policy Community Outreach Summary (3568 : 2015 City of Fort Collins Energy Policy) Public Comments Submitted via fcgov.com ---------------------------------------- I just saw this opportunity to comment on the Climate Action Plan (Energy Policy) and realize I have missed the deadline but will present something in hopes of having it considered. In my opinion the plan falls short in addressing new homes. If I understand correctly the plan recommends implementing IECC energy codes for new construction within one year of issuance. While I'm assuming this is a more timely implementation than in the past I think that it is an incredibly unambitious goal. Standards like Passive House that reduce heating energy use in homes by 90% or more have been implemented in much of Europe and to a lesser extent in the U.S. Builders implementing the Passive House standard indicate it can be done with as little as 10% increase in costs. For the last 5 years I have been doing home energy audits in Fort Collins. Before that I had spent 20 years in new home construction. Based on my experience it is incredibly expensive to retrofit an existing home and the energy savings will not be close to what we can do when building new. Yes, retrofitting new homes is necessary but let's stop building new homes that will need to be retrofit immediately. Although IECC energy codes have improved over the years they are a minimum standard. Ambitious goals to address climate change need to include ambitious standards. Please implement more robust standards for new homes. I welcome an opportunity to discuss this in more detail. ---------------------------------------- FYI - In case you have not seen this earlier: http://washington.cbslocal.com/2015/06/09/va-utility-seeking-schools-to-shine-a-light-on-solar-power/ Food for thought! Suzanne King (following your Energy Policy Presentation) ---------------------------------------- Good morning, Mayor Troxell, Members of City Council, and City Staff – The Fort Collins Sustainability Group (FCSG) has reviewed the April 9th version of the draft Energy Policy and developed the comments appended below. I will present these comments to the Energy Board at its meeting this evening. Regards, 2.3 Packet Pg. 53 Attachment: Energy Policy Community Outreach Summary (3568 : 2015 City of Fort Collins Energy Policy) Kevin Cross Fort Collins Sustainability Group Steering Committee Fort Collins Community Action Network P.O. Box 400 Fort Collins, CO 80522 Ph. 970-484-3141 http://fcsg.fccan.org/ FCSG Comments on the Fort Collins Draft Energy Policy The Fort Collins Sustainability Group has reviewed the draft Fort Collins Energy Policy dated April 9, 2015. We fully endorse the policy’s vision, which is to “To support Fort Collins’ social, environmental and economic health through clean energy systems and efficient end-use consumption, with a long term goal of transitioning to energy systems free of fossil fuels.” We are pleased to see multiple references to the 2015 Climate Action Plan (CAP) in the draft Energy Policy, along with support for the goals in that plan, which are to reduce community-wide greenhouse gas (GHG) emissions 20% by 2020 and 80% by 2030 compared to 2005 levels, and to achieve carbon neutrality by 2050. As shown on page 5 of the draft Energy Policy, electricity generation is the main source of Fort Collins’ GHG emissions. We are pleased to see that the annual electric energy savings target will increase from 1.5% in 2015, up to 1.75% in 2016-17, 2% in 2018-19, and 2.5% by 2020. These are among the most ambitious electric energy savings goals in the country. The electric energy savings target adopted for the period 2009-14 was 1.5% per year. We are curious about the actual results for that time period, and would like to see those referenced in the 2015 Energy Policy. The residents of Fort Collins have a right to expect accountability from their municipal utility. The other main contributors to Fort Collins’ GHG emissions are the fuels used for ground travel (primarily gasoline and diesel) and natural gas (used mainly to heat buildings). We would like to see annual savings goals for these fuels through 2020, similar to those established for electricity. These should also support the CAP goal for 2020 of 20% GHG emissions reductions compared to 2005. The City already has a number of programs and policies in place that could be strengthened in order to achieve the new electric energy savings targets, as well as savings targets for transportation fuels and natural gas. Those include ClimateWise, on-bill financing of energy improvements, rebates for energy improvements, and the public transit system. We would like to see these programs and policies – plus recommendations for enhancing them – included in the section titled “Implementation Principles” on page 10 of the draft Energy Policy. The “Implementation Principles” section does include a list of “local and regional energy partners.” We believe that list should be expanded to include community organizations, such as the Community for Sustainable Energy, the Fort Collins Bike Co-op, the Fort Collins Community Action Network, and the Fort Collins Sustainability Group. Those organizations – and the city residents behind them - have 2.3 Packet Pg. 54 Attachment: Energy Policy Community Outreach Summary (3568 : 2015 City of Fort Collins Energy Policy) contributed a great deal to the progress the City has already made in implementing forward-thinking energy policies and practices. Finally, the “Local Economic Health” section on page 11 of the draft Energy Policy mentions entrepreneurial activity and outside capital, but does not mention the creation of socially productive, intellectually stimulating, and well-paying jobs as a likely benefit of the transition to a clean energy economy. We believe that the draft Energy Policy should emphasize this benefit, along with emphasizing the importance of creating a good example for other communities to follow in pursuing their own transitions to a clean energy economy. 2.3 Packet Pg. 55 Attachment: Energy Policy Community Outreach Summary (3568 : 2015 City of Fort Collins Energy Policy) 1 Council Work Session, September 22, 2015 John Phelan, PE, Energy Services Manager 2015 City of Fort Collins Energy Policy ATTACHMENT 4 2.4 Packet Pg. 56 Attachment: Powerpoint presentation (3568 : 2015 City of Fort Collins Energy Policy) Work Session Outcomes GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council have specific feedback with regards to the Energy Policy goals and objectives? 2. Is the alignment clear between the Energy Policy, Climate Action Plan, Platte River Resource Plan, City Plan and Transportation Master Plan? 3. Is Council ready to consider adoption of the 2015 Energy Policy by resolution in an upcoming meeting? 2015 Energy Policy 2 2.4 Packet Pg. 57 Attachment: Powerpoint presentation (3568 : 2015 City of Fort Collins Energy Policy) Scope of the Energy Policy 3 Version Electricity Climate Action Plan Land Use Transportation 2015 Energy Policy 2009 Energy Policy 2004 Electric Energy Supply Policy 2015 Energy Policy 2.4 Packet Pg. 58 Attachment: Powerpoint presentation (3568 : 2015 City of Fort Collins Energy Policy) Structure and Vision 4 Fort Collins Energy Policy • Vision • Motivations • Goals • Efficient Built Environment • Electricity Supply and Distribution • Transportation and Land Use • Implementation Principles • Partnership • Community Economics • Information and Education • Privacy and Security • Connections and Metrics 2015 Energy Policy Fort Collins is a leader in the transition to sustainable and resilient local energy systems to serve the community’s 2050 carbon neutral future. 2.4 Packet Pg. 59 Attachment: Powerpoint presentation (3568 : 2015 City of Fort Collins Energy Policy) Key Attributes 5 Key Attributes • 2020 Goals • Energy efficiency programs • Total renewable energy • Local renewable energy • Alignment with recent and pending updates • Climate Action Plan Framework • City Plan • Transportation Master Plan • Alignment with Platte River resource planning and 2020 carbon reduction goals 2015 Energy Policy 2.4 Packet Pg. 60 Attachment: Powerpoint presentation (3568 : 2015 City of Fort Collins Energy Policy) 2020 Goals 6 1.5% 2.5% 2015 2020 11.0% 20.0% 2015 2020 200% increase 0.5% 2.0% 2015 2020 Energy Efficiency Total Renewable Energy Local Renewable Energy 67% increase 400% increase 2015 Energy Policy (2015 estimated data) 2.4 Packet Pg. 61 Attachment: Powerpoint presentation (3568 : 2015 City of Fort Collins Energy Policy) Alignment with City Plans 2015 Energy Policy 7 Review Cycle ~ 5 years Climate Action Plan (2015 – 2016) Energy Policy (2015) City Plan (2017-2018) Transportation Master Plan (2017-2018) 2.4 Packet Pg. 62 Attachment: Powerpoint presentation (3568 : 2015 City of Fort Collins Energy Policy) THANK YOU! 2015 Energy Policy Community Engagement 2.4 Packet Pg. 63 Attachment: Powerpoint presentation (3568 : 2015 City of Fort Collins Energy Policy) Work Session Outcomes GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council have specific feedback with regards to the Energy Policy goals and objectives? 2. Is the alignment clear between the Energy Policy, Climate Action Plan, Platte River Resource Plan, City Plan and Transportation Master Plan? 3. Is Council ready to consider adoption of the 2015 Energy Policy by resolution in an upcoming meeting? 2015 Energy Policy 9 2.4 Packet Pg. 64 Attachment: Powerpoint presentation (3568 : 2015 City of Fort Collins Energy Policy)