The URL can be used to link to this page

Home My WebLink AboutCOUNCIL - AGENDA ITEM - 10/02/2018 - RESOLUTION 2018-094 ESTABLISHING A COMMUNITYWIDE 1Agenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY October 2, 2018 City Council STAFF Lindsay Ex, Environmental Program Manager Jeff Mihelich, Deputy City Manager Tim McCollough, Light and Power Operations Manager Cyril Vidergar, Legal SUBJECT Resolution 2018-094 of the Council of the City of Fort Collins Establishing a Communitywide 100% Renewable Electricity Goal. EXECUTIVE SUMMARY The purpose of this item is to consider establishing a communitywide goal to achieve a 100% renewable electricity supply from Platte River Power Authority (“Platte River”) and supported by the Fort Collins Utilities (“Fort Collins”) distribution system by 2030. At its July 3, 2018 meeting, Council directed staff to bring forward this Resolution after engaging the community in the dialogue about assumptions that must be met in order to achieve the goal. Notably, this Resolution was developed in collaboration with Platte River and stresses the importance of continuing to balance the three operational principles of financial sustainability, reliability and environmental stewardship for Fort Collins, Platte River, and the community while moving toward a cleaner electricity resource mix. BACKGROUND / DISCUSSION In March 2015, Council adopted updated goals to reduce emissions to 20% below 2005 levels by 2020; additionally, established the goals of reducing emissions to 80% below 2005 levels by 2030 and to be carbon neutral by 2050. Also, in 2015, Council adopted the 2015 Energy Policy, which includes a goal of achieving a 20% renewable electricity supply by 2020, with 2% from local installed distributed generation. As of 2017, electricity emissions represent 51% of greenhouse gas emissions and renewable electricity sources make up 15% of Platte River’s resource mix. In the past year, Platte River has made significant strides toward increasing that percentage by the end of 2020, the renewable electricity resource mix will be approximately 50% due to the 150-Megawatt (MW) wind project and the 20 MW solar project. Still, there is recognition, via the Climate Action Plan (CAP) Framework and other policy discussions, that additional actions to reduce emissions will be required to achieve the community’s 2030 goal. As a community with a municipal utility, many community members have expressed that electricity is the lever over which the City has the most influence to reduce emissions. Community groups brought forward a draft Resolution for Council’s consideration in the spring 2018 to ask Council to set a 100% Renewable Electricity Goal by 2030 given the community’s climate action goals and the increasing number of cities setting similar goals (currently, 82 cities and counties have set similar goals). Councilmembers directed staff to conduct an initial analysis (available here <http://citydocs.fcgov.com/?cmd=convert&vid=218&docid=3205946&dt=MAIL+PACKET>) to assess the achievability, potential rate impacts, alignment with planning efforts, impact on the carbon inventory, and peer cities approaches of setting such a goal. After reviewing this analysis, at the July 3, 2018 Council meeting, Agenda Item 12 Item # 12 Page 2 Councilmembers directed staff to develop a Resolution and to engage the community on the assumptions needed to achieve the goal. Since that direction, staff developed the draft Resolution in partnership with Platte River (Attachment 1) and met with numerous community groups and boards and commissions, including the following: • Fort Collins Partners for Clean Energy (FCP4CE) - July 3 and September 11 • Fort Collins Chamber Local Legislative Affairs Committee (LLAC) - August 10 and September 14 • Energy Board - August 23 and September 13 • Youth Advisory Board - September 5 • Affordable Housing Board - September 5 • CEO Round Table - September 11 • Air Quality Advisory Board - September 17 • Economic Advisory Commission - September 19 • Natural Resources Advisory Board - September 19 • Climate Action Plan Community Advisory Committee - September 20 The summary of this outreach is included as Attachment 2 in this packet. Based on the draft Resolution (Attachment 3) and the public engagement process, the following areas were generally found to be in agreement amongst stakeholders: • The Resolution should explicitly establish a goal, e.g., in Section 2 • More frequent check-ins should be established, e.g., annually, to ensure that progress is being made in a way that ensures the three pillars of financial sustainability, reliability, and environmental stewardship are balanced. • Reliability cannot be compromised as a result of setting this goal. • Almost all groups appreciated the release of the draft Resolution early in the process to allow for extensive community dialogue. • Almost all the groups discussed the need to focus on the lifecycle impacts of all forms of energy and the need to include both supply chain versus production emissions. There was also acknowledgement that the science around this work is in a nascent stage and should continue to be evaluated as we head toward 2030. Other aspects of the Resolution were areas of tension during the community engagement process: • Several groups, e.g., the CEO Round Table, the Chamber LLAC and the Affordable Housing Board, expressed concerns about setting a goal before the development of a plan that would more quantitatively address the cost and achievability of the goal. Other groups, e.g., the Youth Advisory Board, Energy Board, FCP4CE, felt that the City has a history of solving challenging and complex issues and that with 12 years, we could navigate this issue and the check-ins offered a safety net if the goal needed to be revisited. • Several groups, e.g., FCSG, FCP4CE, members of the Air Quality Advisory Board and in a public comment by Save the Poudre, expressed that the definition of hydroelectricity should be narrowed to only include existing hydroelectricity or hydroelectricity from existing dam impoundments. Other groups, e.g., LLAC, Energy Board, CAP Community Advisory Community, stressed it was important to keep the definition of renewable electricity as broad as possible. • Some groups, e.g., LLAC and CEO Round Table, felt the terms around reliability and affordability should be quantified in the same manner as the 100% renewable electricity goal. CITY FINANCIAL IMPACTS The financial impacts of this Resolution will be analyzed through Platte River’s Integrated Resource Plan, currently underway and anticipated to be completed in 2020. If appropriated by Council, staff will align this analysis with the proposed update to the Climate Action Plan and Energy Policy (Budget Offer 43.12). Agenda Item 12 Item # 12 Page 3 BOARD / COMMISSION RECOMMENDATION • The Youth Advisory Board, Energy Board, Air Quality Advisory Board, Economic Advisory Commission, and Natural Resources Advisory Board recommended adoption of the Resolution. • The Affordable Housing Board did not make a recommendation, instead it asked for additional information on the various processes, e.g., the Integrated Resource Plan. PUBLIC OUTREACH Staff met with numerous stakeholder groups, as defined above; details of this engagement effort are provided in Attachment 2. ATTACHMENTS 1. Platte River's Draft Resource Diversification Policy (PDF) 2. Stakeholder Engagement Summary (PDF) 3. Resolution Released on September 6 2018 (draft) (PDF) 4. Triple Bottom Line Scan Summary (PDF) 5. Affordable Housing Board Minutes September 6, 2018 (draft) (PDF) 6. Energy Board Minutes September 13, 2018 (draft) (PDF) 7. Air Quality Advisory Board Minutes September 17, 2018 (draft) (PDF) 8. Natural Resources Advisory Board Minutes September 19, 2018 (draft) (PDF) 9. Economic Advisory Committee Minutes September 19, 2018 (draft) (PDF) 10. Powerpoint Presentation (PDF) Memorandum Date: August 21, 2018 To: Board of Directors From: Jason Frisbie, General Manager and CEO Alyssa Clemsen Roberts, Chief Strategy Officer Subject: Resource Diversification Policy DRAFT Included in the August board packet is a draft of the resource diversification policy. The draft policy reflects board direction from the July board meeting. A presentation to facilitate further collaboration will be provided at the August board meeting. Attachment ATTACHMENT 1 Policy Version #: 1.0 Original Effective Date: 8/30/2018 Next Review Date: 03/01/2020 TITLE: Resource Diversification Policy Page 1 of 2 Purpose: This policy is established to provide guidance for resource planning and diversification. Policy: The board of directors (the board) directs the general manager/CEO to proactively and aggressively continue to diversify Platte River Power Authority’s (Platte River) resource mix. The board sets a goal of reaching a 100 percent non-carbon resource mix by 2030, while maintaining Platte River’s three pillars of providing reliable, environmentally responsible and financially sustainable electricity and services. The board recognizes the following actions must occur in the near term to achieve the 2030 goal and to successfully maintain Platte River’s three pillars: • An organized regional market must exist with Platte River as an active participant • Battery storage performance must mature and the costs must decline • Utilization of storage solutions to include thermal, heat, water and end user available storage • Transmission and distribution infrastructure investment must be increased • Transmission and distribution delivery systems must be more fully integrated • Improved distributed generation resource performance • Technology and capabilities of grid management systems must advance and improve • Advanced capabilities and use of active end user management systems • Generation, transmission and distribution rate structures must facilitate systems integration Resource planning is an ongoing process and Platte River continuously evaluates opportunities to add non-carbon resources. Platte River reviews its generation portfolio annually as part of the budgeting and planning process. This process sets the foundation for developing an integrated resource plan (IRP) submitted to the Western Area Power Administration every five years as required. The resource planning process includes evaluating the progress of energy storage, distributed power sources and new technologies. As a leader in the utility industry in Colorado for many years, Platte River will continue to move forward to meet the resource needs and wants of the four owner communities. The board recognizes the integration of non-carbon resources and new technologies will shape the future of Platte River’s and the four owner communities’ energy supply. Implementing Parties and Assigned Responsibilities: The chief strategy officer reviews this policy and necessary revisions are brought before the Platte River Board of Directors. ATTACHMENT 1 Policy Version #: 1.0 Original Effective Date: 8/30/2018 Next Review Date: 03/01/2020 TITLE: Resource Diversification Policy Page 2 of 2 Associated Items (if applicable): Definitions (if applicable): Resource planning – Involves a coordinated effort to identify the preferred resource expansion plan that includes power generation, transmission assets and demand-side resources Non-carbon – Includes common renewable energy resources like solar, wind and hydro generating capacity Energy storage – Includes battery, compressed air, flywheel, thermal, pump storage and other technologies Document Owner: Alyssa Clemsen Roberts Original Effective Date: 08/30/2018 Authority: Board of Directors Review Frequency: Annually Counsel Review: General Counsel or Associate General Counsel Current Effective Date: 08/30/2018 Version Date Action Author Change Tracking (new, review, revision) 1.0 Original Policy or Board Resolution XX/XX Alyssa Clemsen Roberts New ATTACHMENT 1 STAKEHOLDER OUTREACH - 100% RENEWABLE ELECTRICITY GOAL RESOLUTION Page | 1 0BYouth Advisory Board September 5, 2018 Do you support the proposed Resolution? Yes, 8-0 Is there specific feedback you would send to Council regarding this Resolution? • This is a Youth issue. There are many youth very interested in the topic of renewable electricity and climate change. • Make the goal a mandate. • 100% Renewable Electricity is a realistic goal. We need to plan. Solar will be 10% of today’s cost in the future. • This is a great idea. Coal is going to run out. • Build youth influence. WE will be making the decisions in a few years • Need to have a SMART goal. Specifically interested in how we will measure this • Engage with the Youth in the community, there are environmental groups in the High Schools that you can engage with. • We would like regular feedback on the progress toward the goal, once it is set. ATTACHMENT 2 STAKEHOLDER OUTREACH - 100% RENEWABLE ELECTRICITY GOAL RESOLUTION Page | 2 1BAffordable Housing Board September 6, 2018 Do you support the proposed Resolution? The Board did not take a position/vote. Requests further information. Is there specific feedback you would send to Council regarding this Resolution? The Board would like to see the City find out more information about how the resolution may impact utility costs and the affordability of housing before the resolution is passed. The Board decided to take time to review the City of Fort Collins’ resolution as well as the Chamber’s resolution, FCSG resolution and Longmont’s resolution before providing feedback. The Board wants a higher level of involvement with this resolution as there may be impacts on utility costs and affordable housing. Questions/comments from the Board: • Will this pass a cost onto the consumer? Is there a relationship of this resolution with tiered rates and TOD rate structure? o No certainty of impact of renewable energy on cost. • Will this impact developers and capital cost of housing? o Not directly, but potential to impact utility costs. • Does the resolution include language about boundaries of costs? o Whereas clause speaks to residential and business affordability • Does this impact IQAP or affordability programs? • Concerns about adopting a goal without a plan. • The Board considered joining the staff’s earlier recommendation of planning first before adopting a goal. ATTACHMENT 2 STAKEHOLDER OUTREACH - 100% RENEWABLE ELECTRICITY GOAL RESOLUTION Page | 3 2BCEO Round Table September 11, 2018 Do you support the proposed Resolution? General support for resource diversification, concerns were expressed with the pace and approach of this Resolution, suggested pausing while the Integrated Resource Plan is developed Is there specific feedback you would send to Council regarding this Resolution? • Reliability in the power supply is the most critical issue for the businesses that attended the meeting (and submitted feedback via written comments) o Platte River and the City reiterated that reliability is non-negotiable and will not be compromised • Overall the group in attendance supported resource diversification, but there were questions raised regarding the pace of this Resolution (why focus on this now when the Integrated Resource Plan will address the questions they had around cost, reliability impacts, etc.) • Questioned the approach to set a goal before the plan was developed o Discussed the uncertainty associated with this, is 2030 the right date, the need for proper analysis, etc. • Sensitivities to rate changes varied amongst participants • Participants discussed how the considerations around this goal are broader than financial implications o The participants noted that commitments to sustainability like these are important for talent attraction o The group discussed the organized market and the need for entering into this market to make this resolution feasible o The group discussed the importance of affordability, e.g., can their employees and families still afford to live in Fort Collins? o Also discussed the changing nature of customer demands; requirements to be more socially and environmental responsible; and corporate commitments to these types of efforts • The group discussed that definitions are important, including around reliability and affordability to ensure alignment across parties • Staff committed to sharing these notes back with the participants and providing their feedback to Council Businesses in attendance: • Anheuser-Busch, Inc. • Advanced Energy • Broadcom • Colorado State University • Fort Collins Chamber of Commerce • Loveland Chamber of Commerce • New Belgium Brewery • Odell Brewing • Platte River Power Authority • Poudre School District ATTACHMENT 2 STAKEHOLDER OUTREACH - 100% RENEWABLE ELECTRICITY GOAL RESOLUTION Page | 4 3BFort Collins Sustainability Group (FCSG) and Fort Collins Partners for Clean Energy (FCP4CE) September 11, 2018 Do you support the proposed Resolution? Yes, the group supported the Resolution with minor modifications noted below Is there specific feedback you would send to Council regarding this Resolution? • The group noted that the Resolution is generally heading in the right direction • The group recommended several edits to the Resolution: o Fix Plate to Platte – in the second whereas clause o Add “or more cost effective” after the fourth bullet in the findings o Add “or sooner” after 2030 in the second to last finding bullet o Comments on changes to Section 2 regarding the definition and specifically, the way that hydroelectricity is referenced • FCSG members (who are a part of the FCP4CE coalition) committed to ensuring that the comments discussed today were reflective of the broader FCP4CE coalition ATTACHMENT 2 STAKEHOLDER OUTREACH - 100% RENEWABLE ELECTRICITY GOAL RESOLUTION Page | 5 4BEnergy Board September 13, 2018 Do you support the proposed Resolution? Yes, 7-0 Is there specific feedback you would send to Council regarding this Resolution? • The Board unanimously supported the Resolution with a few suggested modifications: o On the last Whereas clause, the Energy Board suggested changing “energy use” to “electricity” o The Board suggested adding language to Section 2 that reflects the role that Fort Collins Utilities’ Distribution System will need to play in achieving the goal o The Board suggested amending the word “customers” in section 2 to be focused on the community or citizens o The Board recommended leaving Section 3 (around the definition) as is • Additional Discussion o The Board recognized that the Resolution reflects the solid partnership between the City and Platte River o The Board discussed how the Resolution is silent on whether the 100RE is net or gross o The Board stated it is good that storage is not limited to batteries o The Board asked what the current percentage of renewable electricity is (answer is 15%), while recognizing that it will be up to approximately 50% by the end of 2020 o The Board also discussed the TBL-S analysis and made several suggestions for how to clarify this tool o The Board also discussed the need to define affordability and reliability and how Fort Collins’ Utilities commitment to reliability, and how reliability will not be compromised ATTACHMENT 2 STAKEHOLDER OUTREACH - 100% RENEWABLE ELECTRICITY GOAL RESOLUTION Page | 6 5BChamber Local Legislative Affairs Committee (LLAC) September 14, 2018 Do you support the proposed Resolution? The Committee did not support the Resolution. Specific comments noted below. Is there specific feedback you would send to Council regarding this Resolution? • Concerns related to the aspirational nature of the goal and the uncertainty surrounding the goal – is 2030 the right timeframe? When does a goal become a mandate? 100% of anything is aspirational and not realistic. • Supported leaving the definition as wide as possible, e.g., did not support any specific restrictions on the types of hydroelectricity or future technologies that may come along. Indicated every potential solution should be on the table. • The Committee strongly supported getting clearer and more quantitative on the other pillars – reliability and financial sustainability – as specific as the 100% goal is for renewable electricity. • The Committee would like to see costs embedded into the Resolution, and not just city costs. • There were concerns expressed about retiring Rawhide early. • Members expressed fears that the goal could disrupt the balance of the three pillars. o Platte River and the City reiterated that reliability is non-negotiable and will not be compromised. • Overall, committee members discussed a need to spend more time on the why – some were very supportive of the goal in concept but wanted to understand more of what would be achieved. Committee members also challenged that renewable energy is the only energy form that is subsidized, and it would be helpful to have a better accounting of this. • There was also a discussion on considering the true costs of technology and the potential negative lifecycle impacts inherent to all forms of energy production. • Other questions included how the supply chain of materials would be addressed. Reliability in the power supply is the most critical issue for the businesses that attended the meeting (and submitted feedback via written comments). • Overall, the group in attendance supported resource diversification, but there were questions raised regarding the pace of this Resolution (why focus on this now when the Integrated Resource Plan will address the questions they had around cost, reliability impacts, etc.) • Continued questions around the approach to set a goal before the plan was developed. • Committee members expressed appreciation for sharing the draft Resolution in advance of normal timeframes. • The Committee supported amending the language in Section 2 of the Resolution to indicate that the establishment of a goal as opposed to “expresses its intent”. ATTACHMENT 2 STAKEHOLDER OUTREACH - 100% RENEWABLE ELECTRICITY GOAL RESOLUTION Page | 7 6BAir Quality Advisory Board September 18, 2018 Do you support the proposed Resolution? Yes, 5-0 (1 member abstained) Is there specific feedback you would send to Council regarding this Resolution? • Board members had varying opinions on whether hydroelectricity should be restricted to just existing dams or to say that no new impoundments should be considered. • The Board discussed that while a plan was not established in advance, the technology is heading in this direction and that between Platte River and Fort Collins, we could figure it out. • Appreciated the opportunity to periodically check-in on the goal and assess cost-effectiveness and reliability at that time. • Board members noted that all forms of energy reduction should be considered, including in residential and commercial sectors and in the waste and transportation sector as well. • The Board supported amending the language in Section 2 of the Resolution to indicate that the establishment of a goal as opposed to “expresses its intent” ATTACHMENT 2 STAKEHOLDER OUTREACH - 100% RENEWABLE ELECTRICITY GOAL RESOLUTION Page | 8 Economic Advisory Commission September 19, 2018 Do you support the proposed Resolution? Yes, 7-1 with recommendations noted below. Is there specific feedback you would send to Council regarding this Resolution? • The Commission recommended that reliability remains at its same level or higher and that all costs are considered. In Section 2, “balance” might not be the right language. • Achieving the goal will require innovation and planning processes need to be nimble to take advantage of opportunities and adapt to changing technologies. • Comment that the resolution is missing the measure of “livability”, e.g. the impact of wind turbines. • Concerns expressed about the 2030 timeline. Some businesses feel the timeline is fast and rushed. Reliability needs to be a top priority. The impact on cost is concerning for businesses and could impact expansion of businesses. • Comment about the impact on the economy as a whole. Noted that setting a goal could have a overall long-term positive impact on the economy. • Comments about being cognizant of other environmental factors e.g. transmission lines impact on natural areas. Questions to staff during the presentation: • Question about the relation of this to our CAP goals and Energy goals. • What is the corporate community doing to assist in the innovation required to achieve this goal of 100%RE • Question about the recent renewable energy goals established in California and by other cities. • Question about reliability – times of no wind/no sun – is the storage technology developed enough? • Question about home electric storage in relation to the goal. ATTACHMENT 2 STAKEHOLDER OUTREACH - 100% RENEWABLE ELECTRICITY GOAL RESOLUTION Page | 9 Natural Resources Advisory Board September 19, 2018 Do you support the proposed Resolution? Yes, 6-0 with recommendations noted below. Is there specific feedback you would send to Council regarding this Resolution? • The Board moved to support the Resolution because of the need to cut greenhouse gas emissions. • The Board expressed concerns about the inclusion of hydroelectricity into the definition; the group suggested the goal should focus on solar and wind. • The Board asked staff to be clearer on when the feasibility analysis (IRP, etc.) will be complete in the language of the Resolution, e.g., when will the analysis be revisited and be clearer on that the process will be scientifically-driven. • The Board asked staff to address lifecycle impacts of all forms of energy. • Board members expressed concerns that the rate of change that is occurring in the environment is much faster than the rate we are solving these issues. • The Board also questioned whether “balance” was the right word – it’s important to get it right. ATTACHMENT 2 STAKEHOLDER OUTREACH - 100% RENEWABLE ELECTRICITY GOAL RESOLUTION Page | 10 Climate Action Plan Community Advisory Committee September 20, 2018 Do you support the proposed Resolution? N/A Is there specific feedback you would send to Council regarding this Resolution? • The Committee was supportive of the definition of renewable electricity in the resolution. • The Committee appreciated that vulnerable populations were mentioned in the resolution and the overall approach to addressing social equity and just transitions at the local level and beyond. • The Committee had questions regarding the timeline of reviewing the goal and asked for benchmarks/milestones (e.g. short-term goals and specific metrics) to be included for accountability; though not to be included in the resolution if it will create restrictions. This would make the Committee more supportive of an aspirational goal. The Committee discussed how these metrics and benchmarks would be embedded in the upcoming planning processes. • The Committee had questions about a plan being developed by staff after the goal is established, and if that plan would set milestones and metrics. Staff noted that yes, this is a key part of the planning processes. • Discussion occurred about an open market for energy and the implications of selling and buying energy instead of storing with batteries. • Committee members discussed the future of coal plants regarding the timeline of the plants and the superior nature of Rawhide to remove certain environmental pollutants. Some members questions whether the Resolution should get more specific on this; others suggested keeping it as broad as possible until the plan is developed. • The Committee commented on the language of “means that … do not add greenhouse gases to the atmosphere” and whether all of these sources add greenhouse gases. As with other groups, the CAC spent time on supply chain versus production emissions, acknowledging the science around this work is in a nascent stage and should be incorporated as we head toward 2030. • The Committee discussed TBL-S, particularly the balancing the social and economic impacts regrading cost. • As with all groups, the CAC stressed the importance of affordability and reliability. • CAC members also noted that the city is lucky to have the various planning efforts, whether through City Plan, the Integrated Resource Plan, CAP, etc. because no one effort can do it all. • CAC members noted the importance of workforce training and partnerships with our schools and universities to help mitigate some of the potential economic impacts, e.g., for those in fossil fuel industries. ATTACHMENT 2 DRAFT FOR DISCUSSION PURPOSES ONLY – SUBJECT TO LEGAL REVIEW BEFORE FINAL RESOLUTION 2018-xx OF THE COUNCIL OF THE CITY OF FORT COLLINS ESTABLISHING A COMMUNITY-WIDE 100% RENEWABLE ELECTRICITY GOAL WHEREAS, the City of Fort Collins is one of four founding municipalities of the Platte River Power Authority (Platte River), one of Colorado’s most successful examples of regional utility authority collaboration, and one which provides Fort Collins with highly reliable electricity at the lowest wholesale cost in the state; and WHEREAS, Plate River’s operational principles include balancing financial sustainability, reliability, and environmental stewardship, including a clean energy system that is responsive to evolving markets and emerging technologies, as well as a diverse portfolio for resilience; and WHEREAS, on March 3, 2015, City Council adopted Resolution 2015-030, recognizing the 2015 Climate Action Plan Framework (“2015 CAP Framework”), which contains a high- level analysis of the strategies necessary to reduce Fort Collins’s community-wide greenhouse gas emissions and established goals to reduce emissions to 20% below 2005 levels by 2020; and additionally, established the goals of reducing emissions to 80% below 2005 levels by 2030 and to be carbon neutral by 2050; and WHEREAS, on December 15, 2015, City Council adopted Resolution 2015-115, approving the 2015 Energy Policy, which includes a goal of achieving 20% renewable electricity by 2020, with 2% from local installed distributed generation; and WHEREAS, the 2015 Energy Policy identifies distributed energy resources, such as conservation, efficiency, building codes, and solar as effective mechanisms to meet the electricity needs of the community; and WHEREAS, data and research collected by City staff indicate that in 2017, community- wide electricity emissions represented 51% of greenhouse gas emissions; and WHEREAS, in outlining the necessary steps, the 2015 CAP Framework 2030 community carbon emissions were estimated to only be at 73% below 2005 levels, indicating the City’s need to identify additional strategies and steps to meet the 2030 goals; and WHEREAS, based on community input, Councilmembers directed staff at the July 3, 2018 meeting to engage the community in a dialogue about the assumptions that must be met to achieve a community-wide 100% Renewable Electricity goal; and WHEREAS, based on information received during this engagement, the 2015 CAP Framework and the 2015 Energy Policy, the City Council makes the following findings regarding pursuing community energy goals: DocuSign Envelope ID: A58E2D4D-8089-4FB5-8F9F-9937D7EA23C7 ATTACHMENT 3 DRAFT FOR DISCUSSION PURPOSES ONLY – SUBJECT TO LEGAL REVIEW BEFORE FINAL x Fort Collins Utilities, in collaboration with Platte River and other partners, is ideally positioned to deliver residential and commercial energy services programs; x converting natural gas and petroleum energy sources to electric sources for home heating and transportation could be increasingly important strategies to meeting community climate goals, and the emissions reduction success of these efforts is dependent upon a clean electricity supply; x reliable and affordable electricity for residents and businesses, especially vulnerable populations, and predictable and gradually changing rates, are important to attract and retain local businesses and spur economic health, and so are vital to our community’s success in a highly competitive and increasingly global marketplace; x Platte River has a history of aligning procurement of resources when the timing and cost effectiveness is right, and in 2018 has demonstrated that it can purchase renewable electricity at scale at a cost that is commensurate to power generated from some fossil fuels on an energy basis; x studies, such as one published in the Proceedings of the National Academy of Sciences in 2017, suggest that significantly higher percentages (up to 80%) of renewable electricity could be achieved in the U.S. grid in both a cost-effective and reliable manner; x the transformation of energy technologies and systems to achieve flexibility through innovation is expected to evolve rapidly in the United States and in the world over the next several decades including grid management systems, distributed generation performance, active end user device management systems, and rate structures to facilitate systems integration; x electricity transmission and distribution infrastructure and delivery system investments will need to be increased and must become integrated; x technologies associated with all types of electricity storage, including batteries, could continue to develop rapidly in terms of capacity, life-expectancy, and affordability presenting the opportunity to utilize storage alongside renewable electricity sources by 2030; and x participation in a regional electricity market is an important means by which to meet expected needs for transmission, integration, and balancing of future renewable electric resources associated with the City’s goals; and WHEREAS, in 2018, Platte River began updating its Integrated Resource Plan, and has committed to evaluate a 100% renewable electricity scenario in addition to analyzing new resource options, a revised baseline, organized energy market impacts, a regional economic model to capture the impacts of electric rate changes and a formalized action plan defining and addressing renewable targets, and, subject to annual appropriation by City Council, the Integrated Resource Plan will be aligned with the proposed update to the Fort Collins 2015 CAP Framework and Energy Policy; and WHEREAS, in light of the foregoing, the Council desires to establish a community-wide goal for renewable energy use, as set forth below. DocuSign Envelope ID: A58E2D4D-8089-4FB5-8F9F-9937D7EA23C7 ATTACHMENT 3 DRAFT FOR DISCUSSION PURPOSES ONLY – SUBJECT TO LEGAL REVIEW BEFORE FINAL NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the Council hereby expresses its intent to achieve a 100% renewable electricity supply to the City from Platte River by 2030, while continuing to balance the three principles of financial sustainability, reliability, and environmental stewardship for Fort Collins Utilities, Platte River, and our customers. Section 3. For the purposes of this Resolution, renewable electricity includes non- fossil fuel sources, including electricity derived from wind, solar, hydroelectricity and geothermal sources and other means that may become available that do not add greenhouses gases to the atmosphere; and Section 4. That the Council hereby expresses its support for the inclusion of these goals into Platte River’s Resource Diversification Policy and in Platte River’s update to its Integrated Resource Plan, and Platte River’s related efforts such as its pursuit to join an organized energy market. Section 5. That the economic health of the area depends on universal access to clean, affordable, and reliable energy resources, and that the Council hereby expresses that new information regarding cost-effectiveness or achievability may emerge between 2018 and 2030, and that this goal should be reviewed periodically, and at least no less frequently than at the time Platte River is considering and adopting updates to its Integrated Resource Plan, to promote and support efforts to achieve 100% renewable electricity as a cost-effective, reliable, and impactful strategy to achieve Fort Collins greenhouse gas goals. Section 6. That the City government must lead by example in this area by working with Platte River and establishing a 100% renewable electricity portfolio for its own operations before 2030. Section 7. That the City government must play an important role to build partnerships, inspire community action, and promote involvement by all segments of the community (local businesses, governments, utilities, schools, universities, non-profit organizations, homeowners, and other individuals) in efforts to reduce community-wide greenhouse gas emissions. Section 8. That the City Manager is further hereby directed to prepare each calendar year a report tracking progress toward attainment of the goals established herein, in alignment with the annual community-wide greenhouse gas emissions inventory and related protocols and a list of quantified actions for the preceding calendar year, as adopted in Resolution 2015-030. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 2nd day of October, A.D. 2018. DocuSign Envelope ID: A58E2D4D-8089-4FB5-8F9F-9937D7EA23C7 ATTACHMENT 3 DRAFT FOR DISCUSSION PURPOSES ONLY – SUBJECT TO LEGAL REVIEW BEFORE FINAL ________________________________ Mayor ATTEST: ________________________________ City Clerk DocuSign Envelope ID: A58E2D4D-8089-4FB5-8F9F-9937D7EA23C7 ATTACHMENT 3 Resolution Committing to a 100% Renewable Electricity Supply by 2030 This project considers setting a community-wide 100% renewable electricity (100RE) goal via a Resolution by Council. This scan includes consideration of the impacts (positive and negative) of working toward a 100RE goal. Assumption is that financial sustainability, reliability and environmental stewardship principles will continue to be balanced. Positive • Achieving the goal would significantly impact the climate action goals, as electricity is 50% of community emissions. • An initial life cycle assessment of the impacts of fossil fuel extraction versus renewable energy found that RE has less impacts in 13 of 18 categories. • Slightly positive on resilience (ENV4) – the closer the grid gets to 100% renewable electricity, the more concerns there are around grid stability and reliability. Locally- developed renewables will assist. • Significantly positive impacts on air quality • Positive regional impacts through collaboration with Platte River Negative • Potential negative renewable lifecycle impacts Positive • Innovation will be required to achieve the goals so would positively impact entrepreneurship and innovation • Advances the climate economy • Enhances the community’s image as a sustainable community (moderated by how progressive this goal is) • Could also positively impact regional economic partnerships and participation Negative • Potential challenges to meet future infrastructure needs as additional distribution and infrastructure will be needed to ensure grid stability • Acknowledged that impacts on businesses will vary, e.g., those reliant on fossil fuels could be negatively impacted while those in the RE industry or those with similar values would be positively impacted Positive • Could positively impact opportunities for education and vocational training geared toward closing local skills gaps. Negative • Note: all negative impacts were Resolution Committing to a 100% Renewable Electricity Supply by 2030 • Kicking off in 2018, Platte River is initiating an update to their Integrated Resource Plan. An offer currently in the City Manager’s Recommended Budget is an update to the Climate Action Plan and Energy Policy specifically to focus on the 2030 climate action goal to reduce emissions 80% below 2005 levels. If the Offer is funded, the efforts will be closely coordinated with Platte River and will be designed to address some of the concerns raised by the Triple Bottom Line Scan. Environmental Economic Social Low Confidence Negative Impact Positive Impact High Confidence ATTACHMENT 4 1 | Page DRAFT MINUTES CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD Date: Thursday, September 6, 2018 Location: Colorado River Room, 222 Laporte Avenue Time: 4:00–6:00pm For Reference Diane Cohn, Chair Ken Summers, Council Liaison Sue Beck-Ferkiss, Staff Liaison 970-221-6753 Board Members Present Board Members Absent Diane Cohn Curt Lyons Catherine Costlow Jen Bray Kristin Fritz Rachel Auldridge Jeffrey Johnson Staff Present Sue Beck-Ferkiss, Social Policy & Housing Project Manager Brittany Depew, Administrative Assistant/Board Support Josh Birks, Director of Economic Health Office Tim McCollough, Deputy Director, Utilities Joe Wimmer, City Manager’s Office Call to order: 4:02 Agenda Review: Added Josh Birks to discuss Metro Districts Public Comment: None Review and Approval of Minutes AGENDA ITEM 2: 100% Renewables—Tim McCollough, Deputy Director of Utilities Light and Power Fort Collins Partners for Clean Energy, made up of many organizations with shared common value around renewable energy, hope to achieve goal of 100% renewables by 2030. Council asked staff to review this goal. Working with Platte River Power Authority (PRPA)—Fort Collins Utilities is the retail utility provider, and Fort Collins owns part of PRPA and has two seats on their board. Six other board members from the other three co-owning communities. Underlying principals are shared: reliability, financial sustainability, environmental stewardship. Received direction from Council to address this goal and conduct outreach. Going back to Council in October. If adopted, this would provide input to many upcoming processes. Main question arising is “How much will this cost?” August minutes will be approved in October. ATTACHMENT 5 2 | Page Utility costs greatly impact housing affordability. How you define renewable energy can vary greatly. Trying to answer the question, “Is this a mandate or a goal?” Three questions for this board: 1. Do you support the proposed resolution? 2. Does this resolution align with your board’s charter? 3. Is there specific feedback you would send to Council regarding this Resolution? Comments/Q&A:  Jeff: What are the other municipalities involved with Platte River? o Tim: Longmont, Loveland, Estes Park o Jeff: Do they have resolutions? o Tim: Longmont does, adopted in January 2018  Jeff: When I look at what the City has done with water, and now time-of-day change for utilities, it seems like a lot of the cost increases are based on environmental goals and that passes the cost onto the consumer. Would this layer onto that? o Tim: Our energy costs already include Platte River’s wholesale cost, if we need to do something different for the infrastructure. That’s balanced by lower costs of certain types of renewable energy, like wind. It’s not a foregone conclusion that switching to 100% renewable would increase the cost for consumers.  Diane: Would this resolution impact developers? o Tim: This speaks to the supply side, not the consumer side. No direct tie to development requirements.  Sue: Does the resolution set any boundaries around prices? o Tim: There is a section that speaks to residential and business affordable.  Diane: I know the utilities department has recently added additional discounts. o Sue: Income qualified assistance program. o Diane: I assume this will fall under that and not directly impact it? o Tim: This wouldn’t directly impact that program at all.  Sue: Is staff submitting this with the recommendation to adopt it? o Tim: We are submitting to Council for their consideration and will not be providing a recommendation one way or the other.  Curt: What percent of electricity is generated right now with fossil fuels? How much are we trying to replace? o Tim: In 2017, about 67% was from fossil-based or carbon-based generation, but that’s declining. By 2020, we expect to see 50% from renewable sources.  Catherine: Why do we feel like we need to be the driver here rather than Platte River? o Tim: That’s a great question and speaks to the tension happening between the other groups as well.  Jeff: You said staff is not taking a position, can you say why? o Tim: We have taken a position and that was that we needed more planning time before setting this goal.  Sue: To summarize, the Affordable Housing Board feels there’s a lot of information that would be valuable in determining if a resolution is appropriate and would like to see the City find out more information before the resolution is passed. ATTACHMENT 5 3 | Page o Tim: Specifically about how it may impact housing affordability? o Sue: Yes, exactly. AGENDA ITEM 1: City Manager’s Recommended Budget and Ways to Comment—Sue Beck- Ferkiss, Social Sustainability The budget proposal has been released and boards and commissions have been asked to review and provide any recommendations to David Young by September 28. Budgeting for Outcomes (BFO) process takes places every other year, offers submitted by departments as “sellers,” include ongoing offer and enhancements. Very few enhancements are going to be funded this year. The recommended budget now goes to the Budget Lead Team (BLT) to make adjustments. Council will be discussing this outcome area (NLSH) on September 11. Social Sustainability’s ongoing budget is included, as well as Homelessness Initiatives enhancement and the Affordable Housing Capital Fund. The line items in white are being recommended for funding and those in gray are not. Comments/Q&A:  Diane: So this budget is for 2019-2020? o Sue: Yes.  Curt: Is there a short answer why the budget is so tight this year? o Sue: Not really. I think it has to do with the retail revolution and we’re very sales tax- oriented.  Sue: In this budget cycle, we got an additional $100k for human service funding, and that is not being included in the next budget at this time. o Catherine: Wasn’t that $100k already committed? o Sue: Yes, but only through 2018.  Catherine: Who ranked these? o Sue: This is the City Manager’s recommended budget. o Catherine: So they went through and ranked everything? o Sue: This is a huge process and the budget teams provide their recommendations to the City Manager.  Kristin: What are “housing access supports”? o Sue: It’s for waivers and a middle-income homebuyer assistance program, and it’s not currently included in the recommended budget.  Jeff: What’s the downtown ambassador program that’s not being funded? o Josh Birks: The DBA has been running this program for the last three years to provide ambassadors downtown to help visitors, also on the street working closely with Outreach Fort Collins (OFC) to keep an eye on inappropriate behaviors. o Sue: Funding for OFC is included in the homelessness initiatives, which is currently recommended for funding.  Curt: What’s the “land use code amendment”? o Sue: It’s not coming out of our office so I’m not sure. o Kristin: I hope that’s not the implementation step of City Plan.  Jen: You mentioned a middle-income homebuyer assistance (HBA) program pilot? o Sue: That’s the housing access support, and that’s also where waivers are. o Jen: That’s for home purchase? o Sue: Yes. ATTACHMENT 5 Energy Board Minutes DRAFT - ABRIDGED September 13, 2018 Energy Board Minutes DRAFT - ABRIDGED September 13, 2018 Fort Collins Utilities Energy Board Minutes DRAFT - ABRIDGED Thursday, September 13, 2018 Energy Board Chairperson Nick Michell, 970-215-9235 City Council Liaison Ross Cunniff, 970-420-7398 Energy Board Vice Chairperson Amanda Shores, 408-391-0062 Staff Liaison Tim McCollough, 970-305-1069 Roll Call Board Present: Chairperson Nick Michell, Alan Braslau, Stacey Baumgarn, Bill Becker, Jeremy Giovando Late Arrivals: Vice Chairperson Amanda Shores, Krishna Karnamadakala Board Absent: Greg Behm, John Fassler Others Present Staff: Tim McCollough, Christie Fredrickson, Lindsay Ex, John Phelan, Platte River Power Authority: Paul Davis, Alyssa Clemson-Roberts Members of the Public: Rick Coen 100 Renewable Energy Community Goal Resolution Tim McCollough, Deputy Director Utilities Light & Power John Phelan, Senior Manager Energy Services Lindsay Ex, Senior Manager Environmental Services (attachments available upon request) The Utility’s goal is to align with Platte River’s goals and mission statement on reliability, and the triple bottom line focus: financial sustainability, reliability, and environmental stewardship. Staff received direction from City Council to bring forward a resolution aligning with the Energy Policy and the Climate Action Plan for consideration by October 2. Over the last few months, staff has completed stakeholder and community outreach leading up to the October 2 hearing, including visiting many other City boards and commissions and a Triple Bottom Line Scan. The Triple Bottom Line Scan is a tool composed of about 30 questions to help staff analyze any policy or project from a triple bottom line perspective. The primary takeaways from this scan were: social responses were largely neutral, economic impacts had the greatest range and lowest confidence, and environmental impacts were the most positive and highest confidence. Board member Braslau commented that staff may be asking the wrong questions, and Ms. Ex said staff hopes this tool shows that a potential project or policy is generating a positive impact, regardless of the confidence level. Chairperson Michell asked the presenters to clarify size of the circles in the triple bottom line scan graphic. Ms. Ex said the size of the circle is dictated by the variability, the larger the bubble the more variation in the responses. Mr. Michell said perhaps the circle size should instead be correlated to the importance of the issue. Ms. Ex said added this tool is very much in a 1.0 stage and if the board would ATTACHMENT 6 Energy Board Minutes DRAFT - ABRIDGED September 13, 2018 Energy Board Minutes DRAFT - ABRIDGED September 13, 2018 like to dive into the tool on a deeper level staff would be happy to come back and collect their feedback at another session, but it’s intended as a snapshot at this point. Vice Chairperson Shores said she found the graphic is very confusing and Chairperson Michell agreed. Ms. Ex said the Board’s feedback has shown her that it would be helpful for staff to include the One-Pager document with their materials for Council to provide additional context. Mr. McCollough asked the Board a few questions: Do they recommend Council adopt the resolution as written, does this item align to the Energy Board’s charter, and does the Energy Board have any feedback they’d like to provide to Council regarding this resolution. Board member Becker said it seemed like the Utility was putting all the responsibility and control on Platte River to be 100% renewable, with little to no responsibility on the City. Mr. McCollough said some of Mr. Becker’s concerns are addressed in section four of the resolution, where collaboration efforts and contributions are expressly acknowledged. Board member Baumgarn asked why the term customer was used, as opposed to citizen, and said it makes him feel like a revenue stream as opposed to a member of the community. Ms. Ex said there is a general avoidance when using the word citizen because it can feel exclusive, since not everyone is a citizen. Board member Braslau suggested resident, but Ms. Ex pointed out that excludes businesses. Board members discussed other potential terms, such as community, that are more inclusive. Mr. McCollough suggested the board make a motion. Board member Braslau moved the Energy Board recommend City Council adopt the resolution as written by staff. Board member Giovando seconded the motion. Discussion: Board member Becker said it’s important to acknowledge that the City of Fort Collins has to support this goal through the distribution system and the role they have to play, support, and contribute in this project. Mr. McCollough suggested adding the language “and supported by Fort Collins Utility’s distribution system,” and Mr. Becker said he would be amenable to that as it satisfies his concern. Chairperson Michell asked staff to clarify the bullet point stating “improve distributed generation resource performance,” and Ms. Clemson Roberts said the point they were intending is every piece of equipment they have needs to be a little bit better—it needs to work together better and be integrated better. Board member Baumgarn asked if Council gets the same level of background information as the Energy Board, and staff confirmed they do receive the same level of detailed information. Vote on the Motion: It passed unanimously, 7-0, with two absent. Chairperson Michell asked if the Board should write a memo to detail their feedback, or if they should speak at the October 2 Council meeting. Mr. McCollough said both are valuable, and which avenue they choose is the Board’s prerogative. ATTACHMENT 6 AIR QUALITY ADVISORY BOARD REGULAR MEETING SEPTEMBER 17, 2018 – 5:30 PM 222 LAPORTE AVENUE, FORT COLLINS – COLORADO ROOM 09/17/18 - Minutes Page 1 1 CALL MEETING TO ORDER: At 5:31 PM the meeting was called to order by Vice-Chair Vara Vissa. 2 ROLL CALL: A Quorum is present. BOARD MEMBERS PRESENT: Matt Tribby Karen Artell Harry Edwards Jim Dennison Arsineh Hecobian Vara Vissa – Vice Chair BOARD MEMBERS ABSENT: Mark Houdashelt Greg Clark Chris Wood STAFF PRESENT: Cassie Archuleta, Air Quality Program Manager – City of Fort Collins Lindsay Ex, Climate Program Manger – City of Fort Collins Jennifer Shanahan, Environmental Planner – City of Fort Collins COMMUNITY GUESTS: Alan Braslau, Energy Board - City of Fort Collins 3 AGENDA REVIEW: Vara Vissa reviewed the Agenda with the Air Quality Advisory Board (“AQAB”). Agenda accepted without modification. 4 CITIZEN PARTICIPATION: Guests to the AQAB meeting (listed above) introduced themselves. They had no comments to share with the AQAB. 5 APPROVAL OF MINUTES: With a couple of modifications, Harry Edwards motioned to approve the August 2018 meeting minutes. Matt Tribby seconded. The Vote passed unanimously. (5-0). Arsineh Hecobian abstained because she was not in attendance at the August meeting. 6 UNFINISHED BUSINESS: a) 2019 Work Plan Approval: ATTACHMENT 7 AIR QUALITY ADVISORY BOARD REGULAR MEETING SEPTEMBER 17, 2018 – 5:30 PM 222 LAPORTE AVENUE, FORT COLLINS – COLORADO ROOM 09/17/18 - Minutes Page 2 The AQAB members reviewed the 2019 Work Plan. General agreement among the group that the plan was good, especially appreciating the condensed format. Matt Tribby acknowledged alignment of the plan with the AQAB purpose. He wanted to point out that keeping the monthly Agenda items closely connected to the work plan is essential. Jim Dennison agreed. He believes that the chairperson can assist by shepherding the AQAB meetings via meticulous correlation with the work plan. There was a brief discussion regarding funding of city idling programs. Cassie Archuleta noted that the Idling Outreach Program received funding in the current city budget. Jim Dennison discussed an issue with City requirements for asbestos testing and abatement (Item 5b). He explained that there is an anomaly in requirements for demolition versus remodeling projects. He further explained that, in some situations, property owners incur additional (and perhaps significant) costs for remedial procedures. In some cases, he noted industry compliance issues. Jim does not believe the regulatory differences are logically consistent and he petitions city staff to review the current asbestos handling regulations. Arsenih Hecobian motioned to approve the 2019 Air Quality Advisory Board Work Plan. Karen Artell seconded. The Vote passed unanimously. (6-0). 7 NEW BUSINESS: a) 100% Renewable Electricity Resolution: Lindsay Ex, Climate Program Manager – City of Fort Collins reviewed the 100% Renewable Electricity Resolution Draft which will be presented for consideration by City Council on October 2, 2018. The Resolution seeks to establish a community-wide 100% renewable electricity supply by 2030. The Resolution was developed in partnership with Platte River Power Authority. This statement asserts that the City of Fort Collins endeavors to employ 100% renewable energy by 2030. She noted that Platte River Renewable Energy is now at 15%, and is expected to be at approximately 50% by the end of 2020. There are three principles guiding this effort: 1) Financial Sustainability, 2) Environmental Stewardship and, 3) Reliability. One of the most common themes from discussions with all stakeholders is reliability. Fiscal, Environmental and Social Sustainability are the Triple Bottom Line guiding principles that require analysis of the impacts on the three goals listed. Jim Dennison inquired about the projected impact on utility rates. Lindsay Ex stated that specific impacts would be addressed through Platte River’s Integrated Resource Plan and the joint update to the Climate Action Plan and Energy Policy. The 150 MW wind project that Platte River is working with Enyo has the potential to be rate neutral, as an example. ATTACHMENT 7 AIR QUALITY ADVISORY BOARD REGULAR MEETING SEPTEMBER 17, 2018 – 5:30 PM 222 LAPORTE AVENUE, FORT COLLINS – COLORADO ROOM 09/17/18 - Minutes Page 3 Harry Edwards asked if storage capacity was feasible today; Lindsay responded that it is a critical component of the planning processes and is not readily available in a cost-effect manner today. Board member, Matt Tribby (who also works at Platte River Power Authority as a Senior Environmental Analyst) said that there is an RFP (Request for Proposal) open for this and that the technology needs additional development. Harry and Matt exchanged some technicalities of the current technology capability. Matt does believe the technology is rapidly developing. In response, Harry referred to the turbine technology at Cabin Creek Hydroelectric Generating Facility near Georgetown, CO. In partnership with Xcel Energy, it provides additional electrical power at peak demand hours, rejuvenating itself during non-peak hours. Lindsay mentioned some of the subject-matter tensions, which include undetermined costs, actualization, goal versus mandate language and defining terms like hydroelectricity. In addition, she brought attention to Section 8 that incorporates an annual check-in, reminding the group that this is a preliminary stage for this resolution. Jim Dennison asked about plans for Rawhide Energy Station (Natural Gas and Coal facility operated by Platte River Power Authority which also includes a “build” for a solar energy garden) when these goals are achieved. Matt Tribby said that this would be discussed moving forward but is silent in the Resolution. Some discussion ensued about power requirement levels with the advent of electric cars, using electricity for heating and additional use for increases in population. These demand fluctuations contribute to modeling challenges. Lindsay said that the City Attorney did consult on the language of the draft resolution. AQAB were concerned about some of the language in the resolution re establishing a goal and disfavor constructing hydroelectric dams. There was additional discussion encompassing other energy reductions such as transportation and heating. However, after additional debate, the AQAB members decided not to edit the resolution. There is some additional commentary that individual board members can always forward their concerns or suggestions personally. Jim Dennison motioned that the Air Quality Advisory Board recommend that the Fort Collins City Council adopt the community-wide 100% Renewable Electricity Resolution goal by 2030. Harry Edwards seconded. The Vote passed. (5-0). Matt Tribby abstained because he works for Platte River Power Authority. b) Northern Integrated Supply Project (NISP): Jennifer Shanahan, Environmental Planner – City of Fort Collins presented the AQAB with and overview of the Northern Integrated Supply Project (“NISP”.) Jennifer asks the AQAB to join in a recommendation related to the air quality in the Final Environmental Impact Statement (FEIS) which is due on October 4, 2018. The Army Corp of Engineers is guiding this project. ATTACHMENT 7 NATURAL RESOURCES ADVISORY BOARD REGULAR MEETING SEPTEMBER 19, 2018 – 6:00 PM 222 LAPORTE AVENUE, FORT COLLINS – COLORADO ROOM 09/19/2018 – MINUTES Page 1 1. CALL TO ORDER At 6:00 PM the meeting was called to order by Luke Caldwell. ROLL CALL A Quorum is present. • Board Members Present: o Luke Caldwell – Co-Chair, 2018 o Drew Derderian o Elizabeth Hudetz o Jay Adams o Barry Noon o Danielle Buttke • Board Members Absent o Ling Wang o Bob Mann o Nancy DuTeau – Chair, 2018 • Staff Members: o Lindsay Ex, Staff Liaison, Climate Program Manager o Jennifer Shanahan, Environmental Planner, o Tim McCollough, Deputy Director, Utilities Light and Power o Noah Beals, Senior City Planner – Zoning o Tom Leeson, Deputy Director of Planning, Development, and Transportation • Guests: o Mark Houdashelt, Air Quality Advisory Board 2. AGENDA REVIEW Luke Caldwell reviewed the Agenda with the Natural Resources Advisory Board (“NRAB”). Agenda accepted without modification. (NOTE: There was presentation order modification to the Agenda due to the speed at which the NRAB proceeded.) 3. COMMUNITY MEMBER PARTICIPATION A guest to the NRAB meeting (listed above) introduced himself. Mark Houdashelt had a few comments to share with the NRAB. He mentioned that in regards to the 100% renewable energy goal, he added that there is some desire to limit hydroelectricity to existing levels. 4. APPROVAL OF MINUTES Without modification, Jay Adams motioned to approve the August 2018 meeting minutes. Barry Noon seconded. The Vote passed unanimously. (6-0). ATTACHMENT 8 NATURAL RESOURCES ADVISORY BOARD REGULAR MEETING 9/19/2018 – MINUTES Page 5 Danielle Buttke referenced recent studies and reports that concluded that West Nile Virus is infectious longer in birds exposed to artificial light at night. The Center for Disease Control, Science magazine, Science News and by the Society for Integrative and Comparative Biology have all published these findings. She is also concerned about the Fort Collins “Gateways” (such as the Harmony and I-25 interchange area) and the effects of these billboards on the ecology. Danielle Buttke motioned that the NRAB recommend adding language removing the night light billboards and excluding the Harmony Gateway area. Seconded by Elizabeth Hudetz. Vote passed (4:0). Jay Adams abstained, as he would like more information on the issue. b. 100% Renewable Electricity: Tim McCollough, Light and Power Deputy Director and Lindsay Ex, Climate Program Manager reviewed the 100% Renewable Electricity Resolution. The team is seeking action from NRAB to Council, which considers this item on October 2. Platte River Power Authority is also considering a similar policy. The Resolution seeks to establish a community-wide 100% renewable electricity supply by 2030. The Resolution was developed in partnership with Platte River Power Authority. This statement asserts that the City of Fort Collins endeavors to employ 100% renewable energy by 2030. She noted that Platte River Renewable Energy is now at 15%, and is expected to be at approximately 50% by the end of 2020. There are three principles guiding this effort: 1) Financial Sustainability, 2) Environmental Stewardship and, 3) Reliability. One of the most common themes from discussions with all stakeholders is reliability. Fiscal, Environmental and Social Sustainability are the Triple Bottom Line guiding principles that require analysis of the impacts on the three goals listed. Lindsay Ex explained the tensions that exist. Some of those are - the characterization of the resolution as a plan, mandate or a goal; the cost; actualization; and broadly or narrowly defining hydro-electricity. Lindsay Ex said there has been some overall agreement amongst Boards and Commissions re language characterizing the resolution as a “goal”. Areas of disagreement include the definition of hydroelectricity and she points out that the draft writers examined the definition used by various communities. Barry Noon said that evidence and information is necessary in formulation of any policies, resolutions or rules and regulations. Specifically, education regarding solar versus hydro energy is essential. He is especially worried about water flow on the Poudre River versus Hydro Electricity. Barry said there is so much data and analysis in circulation and Fort Collins is home to well-known and published river ecologists. Luke Caldwell agreed that any new hydroelectricy is a concern. Danielle Buttke said there is a benefit to adding the hydroelectric definition at least to start the conversation, essentially an effective communication tool. ATTACHMENT 8 NATURAL RESOURCES ADVISORY BOARD REGULAR MEETING 9/19/2018 – MINUTES Page 6 A discussion ensued about how to best influence the Council and the public on this issue. Elizabeth Hudetz discussed “Letters to the Editor” in several publications is effective. Barry replied that he regularly employs this tactic (most recently the effects of the “Border Wall” on the ecology at the border), but it is not enough. Lindsay Ex offered that the City Council is open to letters and in-person advocacy at council meetings. Luke Caldwell guided the conversation by stating that this resolution is simply in the visionary phase and the data analysis and planning phases will come later. This resolution, he said, is simply a mechanism to moving the issues forward. Danielle Buttke and Lindsay Ex discussed that clarity and more specific benchmarks will come with the planning processes. Lindsay also noted that Section 8 of the resolution attaches an annual “check-in” requirement. Barry Noon proclaimed there was a tremendous sense of urgency in the area and an important moral component. He said that “balance” is not an objective when you consider the rate of environmental changes versus the abysmal rate we are solving the issues. He is concerned about accommodation for fringe perspectives in light of this urgency. The correct goal he said is “getting it right” not “balance.” Drew Derderian wanted to know about nuclear energy perspectives. Tim McCollough replied that nuclear energy is too expensive to maintain and the costs of nuclear waste are a significant environmental impact consideration. He added that regulatory and political issues surrounding the nuclear energy are numerous and combustible. Luke Caldwell motioned that the NRAB support the 100% Renewable Electricity Goal by 2030. Elizabeth Hudetz seconded. The vote passed and was unanimous (6-0). c. Budgeting for Outcomes Review: The NRAB postponed this discussion. 7. BOARD MEMBER REPORTS There were none. 8. OTHER BUSINESS a. Review Air Quality Board discussion on potential joint memo to City Council re Organic Materials: Mark Houdashelt, Air Quality Advisory Board spoke about the lack of consensus for means to collect organic materials at city restaurants. He said that there is some energy regarding changing the date for the build-out of the compost facility associated with the Wasteshed plan. He believes that building the facility earlier than planned may create urgency for the issue. It is not a current priority. Mark and Elizabeth Hudetz discussed the $11.8 million price tag on the building of yard and food waste facility. ATTACHMENT 8 Economic Advisory Commission Regular Meeting September 19, 2018, 11 a.m.- 1 p.m. Colorado River Room, 1st Floor, 222, Laporte Avenue 09/19/2018 – MINUTES Page 1 1. CALL TO ORDER Time Started 11:08 a.m. 2. ROLL CALL List of Board Members Present  Sam Solt, Chair  Connor Barry  Ted Settle  Aric Light  Linda Stanley  Denny Otsuga  Ann Hutchison  John Parks  Mayor Wade Troxell List of Board Members Absent  Craig Mueller List of Staff Members Present  Josh Birks, Economic Health & Redevelopment Director  Erin Zimmermann, Admin/Board Support  Lindsay Ex, Sr Manager, Environmental Sustainability  John Phelan, Sr Manager, Utilities Customer Connections  Tim McCollough, Deputy Director, Utilities List of Guests  Dale Adamy (r1st.org)  George Grossman, Owner of Happy Lucky’s Teahouse 3. AGENDA REVIEW  No changes ATTACHMENT 9 ECONOMIC ADVISORY COMMISSION REGULAR MEETING 09/19/2018 – MINUTES Page 5 Ann: I do want to reinforce that this group is interested in being proactive on issues that are of economic importance. Please do drop an email or text to us if something comes up for you. b. 100% Renewable Electricity Resolution— Lindsay Ex, Tim McCollough, John Phelan (Listen/Clarify/ Discuss) Lindsay Ex, Tim McCollough and John Phelan gave a presentation on the 100% Renewal Electricity Resolution that covered the history and background, how the Triple Bottom Line perspective is being applied, what metrics are used, what the engagement process has looked like and what trends have been observed The draft resolution was presented and discussed. Staff also sought input from EAC. Comments: Tim: We enjoy reasonably low-cost electricity in our community and some of the highest reliability through Platte River Power Authority. There has been a conversation in our community since last fall. We as staff were tasked with conducting an analysis and then submit a resolution to Council. Community engagement has been a priority. Aric- there was a partial goal in 2020, and I’m interested in understanding how close we are to meeting that goal. Lindsay: Our goals are to be 20 percent below our 2005 emission-levels by 2020, 80 percent by 2030, and carbon neutral by 2050. Current progress look backs one year so for 2017 we were at 17 percent below. John Phelan: The Energy Policy includes a goal of achieving 20 percent renewable electricity by 2020, with 2 percent from local installed distribution generation. Lindsay: We use a standard protocol to evaluate our emissions there are 8,000 cities committed to similar protocol so we can benchmark against others. Tim: Platte River is also considering a resource diversification policy that is specific about noncarbon resources. Lindsay: We are out talking with boards and groups. There are some areas of agreement and some areas of tensions. What will this cost? Is it achievable? How is this defined? Goal vs Mandate? What comes first: plan or goal? ATTACHMENT 9 ECONOMIC ADVISORY COMMISSION REGULAR MEETING 09/19/2018 – MINUTES Page 6 Tim: Some tensions we have heard is that if you go all the way on the spectrum for environmental, you sacrifice cost and reliability. I don’t believe that has to be true. We need to have honest conversations about how these three balance each other. Mayor Troxell: In the 70s when Council voted to approve the underground lines, the technology did not exist at that point. Tim: the level of innovation was an important risk so we could reap the benefits. Ted: What does the corporate community in the greater Fort Collins area look like to support some of the pioneering that has to happen for this? Tim: The innovation over next decade is not necessarily in the physical hardware but could come in the regulations and how the control systems and control in structure is going to happen. Connor- Sun doesn’t shine all the time, wind doesn’t blow all the time so what needs to happen given storage limits? Tim: Progress needs to be made in storage technology, as well as some other spaces. The resolution as its drafted recognized those things need to be develop, grow and mature for this goal to be achieved. Denny: Hopefully you are also thinking about shortening the review cycle timeline. Tim: The industry is changing, and we are well positioned to adapt our business model. Sam: One metric you might be missing is livability. Linda: I’m generally in favor of renewable energy but there are costs that we don’t think about. There are other issues we need to consider. Ann: I just want to share data point that the Chamber conducted 24 interviews with high power users, major employers. They support pursuing renewable, as you can. This dateline feels very aggressive to the majority of people we talked to. Too much too fast. Reliability is number one issue for them. Cost is a concern. Many of our business partners are willing to pay more to get to this, but I don’t think we have any idea of what the tipping point is. Had discussion with business partners josh facilitated said we aren’t going to relocate, but we aren’t going to expand. I think it’s a balancing act. Josh: some of the same people said their customers are asking them to be more socially and environmentally mindful. They want to become more green and have these other constraints too. Their customers whether business to business or business to consumer, demand things change and they are also reacting to that. Connor: I fully understand and respect the impacts to businesses, but understanding that there’s a lot more going on in our economy. Having a goal to set forward and go towards, this isn’t a mandate; it is a good thing. ATTACHMENT 9 ECONOMIC ADVISORY COMMISSION REGULAR MEETING 09/19/2018 – MINUTES Page 7 Action: Connor motioned that the EAC recommend Council adopt the community-wide 100% Renewable Electricity goal with the priority of maintaining reliability at the current level or higher and that all costs are considered during implementation. Linda seconded. Motion passed 7:1. 8. BOARD MEMBER REPORTS None 9. OTHER BUSINESS None 10. ADJOURNMENT Adjourns 1:11 p.m. UPCOMING TOPICS October:  Capital Expansion Fee Update– Josh Birks (Listen/Clarify)  Open November:  Budget Review Update– Josh Birks (Listen/Clarify)  Open Slot ATTACHMENT 9 1 100% Renewable Electricity Jeff Mihelich, Tim McCollough, Lindsay Ex October 2, 2018 ATTACHMENT 10 Financial Sustainability Environmental Reliability Stewardship 2 Principles ATTACHMENT 10 100% Renewable Electricity Resolution 3 • Direction: • Community & Council input • Customer commitments • Align with existing goals • Input to planning processes • Impacted by resources changes ATTACHMENT 10 Stakeholder Outreach 4 July/August • Council Direction • Community Outreach • Fort Collins Partners for Clean Energy (FC4PCE) • Energy Board • Chamber Local Legislative Affairs Committee (LLAC) • Triple Bottom Line Scan September •Draft Resolution Available (9/6) •Community Outreach • Youth Advisory Board (9/5) • Affordable Housing Board (9/6) • CEO Round Table (9/11) • FCP4CE (9/11) • Energy Board (9/13) • Chamber LLAC (9/14) • Air Quality Advisory Board (9/17) • Economic Advisory Commission (9/19) • Natural Resources Advisory Board (9/19) • CAP Community Advisory Committee (9/20) ATTACHMENT 10 Engagement Themes 5 Areas of Agreement • Explicitly establish a goal in Section 2 • Establish more frequent check-ins, e.g., annual • Reliability cannot be compromised • Appreciated the public release of the draft Resolution • Definitions are important • Assess the lifecycle costs and impacts of all forms of energy Areas of Tension • Which comes first – goal or plan •Costs • Reliability • Feasibility • Definition of renewable electricity • Hydroelectricity • Quantify reliability and affordability like 100% renewable electricity is ATTACHMENT 10 2018 2019 2020 2021 Timeline 6 Integrated Resource Plan (Platte River) Climate Action Plan and Energy Policy Update (Proposed) Climate Action Plan and Energy Policy Update (Proposed) Goal adopted Annual Check-In Goal Review Annual Check-In In Process Pending Annual Check-In ATTACHMENT 10 Environmental Economic Social 7 Triple Bottom Line Scan Results High confidence Positive Impact Negative Impact Low Confidence Takeaways: • Environmental impacts were most positive & highest confidence • Economic impacts had greatest range and lowest confidence • Social responses largely neutral ATTACHMENT 10 Consideration Establishing a Communitywide 100% Renewable Electricity Goal 8 ATTACHMENT 10 -1- RESOLUTION 2018-094 OF THE COUNCIL OF THE CITY OF FORT COLLINS ESTABLISHING A COMMUNITYWIDE 100% RENEWABLE ELECTRICITY GOAL WHEREAS, the City of Fort Collins is one of four founding municipalities of the Platte River Power Authority (Platte River), one of Colorado’s most successful examples of regional utility authority collaboration, and one which provides Fort Collins with highly reliable electricity at the lowest wholesale cost in the state; and WHEREAS, Platte River’s operational principles include balancing financial sustainability, reliability, and environmental stewardship, including a clean energy system that is responsive to evolving markets and emerging technologies, as well as a diverse portfolio for resilience; and WHEREAS, on March 3, 2015, City Council adopted Resolution 2015-030, recognizing the 2015 Climate Action Plan Framework (“2015 CAP Framework”), which contains a high- level analysis of the strategies necessary to reduce Fort Collins’s community-wide greenhouse gas emissions and established goals to reduce emissions to 20% below 2005 levels by 2020; and additionally, established the goals of reducing emissions to 80% below 2005 levels by 2030 and to be carbon neutral by 2050; and WHEREAS, on December 15, 2015, City Council adopted Resolution 2015-115, approving the 2015 Energy Policy, which includes a goal of achieving 20% renewable electricity by 2020, with 2% from local installed distributed generation; and WHEREAS, the 2015 Energy Policy identifies distributed energy resources, such as conservation, efficiency, building codes, and solar as effective mechanisms to meet the electricity needs of the community; and WHEREAS, data and research collected by City staff indicate that in 2017, community- wide electricity emissions represented 51% of greenhouse gas emissions; and WHEREAS, in outlining the necessary steps, the 2015 CAP Framework 2030 community carbon emissions were estimated to only be at 73% below 2005 levels, indicating the City’s need to identify additional strategies and steps to meet the 2030 goals; and WHEREAS, based on community input, Councilmembers directed staff at the July 3, 2018 meeting to engage the community in a dialogue about the assumptions that must be met to achieve a community-wide 100% Renewable Electricity goal; and WHEREAS, based on information received during this engagement, the 2015 CAP Framework and the 2015 Energy Policy, the City Council makes the following findings regarding pursuing community energy goals: • Fort Collins Utilities is ideally positioned to collaborate with Platte River and other partners to deliver residential and commercial energy services programs; -2- • converting natural gas and petroleum energy sources to electric sources for home heating and transportation could be increasingly important strategies to meeting community climate goals, and the emissions reduction success of these efforts is dependent upon a clean electricity supply; • reliable and affordable electricity, with predictable and gradually changing rates, is important to attract and retain local businesses and spur economic health, which are vital to our community’s success in a highly competitive and increasingly global marketplace; • reliable and affordable electricity for residents and businesses, especially vulnerable populations is important in reducing housing cost burdens in the community, recognizing 33.8% of Larimer County residents manage housing costs that exceed U.S. Department Housing and Urban Development’s standard of no more than 30% of household income being dedicated to rent/mortgage and utility costs, and highlights the importance of prioritizing affordability in implementing this community goal; • electric system reliability is comprised of at least two aspects: the availability and quality of the power. • Platte River has a history of aligning procurement of resources when timing and cost effectiveness are right, and in 2018 demonstrated it can purchase renewable electricity at a scale and cost commensurate to power generated from some fossil fuels on an energy basis and began a path to reach approximately 50% renewable electricity mix in its portfolio by 2021; • studies, such as one published in the Proceedings of the National Academy of Sciences in 2017, suggest significantly higher percentages (up to 80%) of renewable electricity could be achieved in the U.S. grid in both a cost-effective and reliable manner; • the transformation of energy technologies and systems to achieve flexibility through innovation is expected to evolve rapidly domestically and internationally over the next several decades, including grid management systems, distributed generation performance, active end user device management systems, and rate structures to facilitate systems integration; • electricity transmission and distribution infrastructure and delivery system investments will need to be increased and must become integrated; • technologies associated with all types of electricity storage, including batteries, could continue to develop rapidly in terms of capacity, life-expectancy, and affordability, presenting the opportunity to utilize storage with renewable electricity sources by 2030 or sooner; and • participation in a regional electricity market is an important means by which to meet expected needs for transmission, integration, and balancing of future renewable electric resources associated with the City’s goals; and WHEREAS, in 2018, Platte River began updating its Integrated Resource Plan with an expected release date of 2020, and has committed to evaluate a 100% renewable electricity scenario in addition to analyzing new resource options, a revised baseline, organized energy market impacts, a regional economic model to capture the impacts of electric rate changes and a formalized action plan defining and addressing renewable targets; and -3- WHEREAS, subject to annual appropriation by City Council, proposed updates to the Fort Collins 2015 CAP Framework and Energy Policy will align with Platte River’s updated Integrated Resource Plan; and WHEREAS, staff has received and considered feedback from numerous stakeholders and six boards and commissions, including Youth Advisory Board, Affordable Housing Board, Energy Board, Air Quality Advisory Board, Economic Advisory Commission, Natural Resources Advisory Board, Fort Collins Partners for Clean Energy, Chamber Local Legislative Affair Committee, CEO Round Table, and the Climate Action Plan Community Advisory Committee; and WHEREAS, feedback from stakeholders and the boards and commissions included the following key themes: • Areas of agreement included the support for frequent check-ins on the goals, the critical importance of affordability and reliability, the importance of evaluating the lifecycle costs and impacts of all forms of energy, and the importance of using goal-setting language; • Areas of disagreement included how to define reliable electricity, how to quantify all of the three principles, and managing the goal coming before the planning processes; and WHEREAS, staff evaluated this feedback and believes the integration of the planning processes shall address these areas of agreement and disagreement through a robust public engagement process; and WHEREAS, in light of the foregoing, the Council desires to establish a community-wide goal for renewable electricity, as set forth below. NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the Council hereby establishes the goal of a 100% renewable electricity supply to the City from Platte River supported by the Fort Collins Utilities distribution system by 2030, without compromising the three principles of financial sustainability, reliability, and environmental stewardship for Fort Collins Utilities, Platte River, and our community. Section 3. For the purposes of this Resolution, renewable electricity includes non- fossil fuel sources, such as electricity derived from wind, solar, hydroelectricity and geothermal sources and other means that may become available and do not add greenhouse gases to the atmosphere. -4- Section 4. That the Council hereby expresses support for inclusion of these goals into Platte River’s Resource Diversification Policy and Platte River’s updated Integrated Resource Plan, and Platte River’s related efforts, such as its pursuit to join an organized energy market. Section 5. That the economic health of the area depends on universal access to clean, affordable, and reliable energy resources, and the Council recognizes new information regarding cost-effectiveness or achievability may emerge between 2018 and 2030, and this goal should be reviewed periodically, and at least no less frequently than at the time Platte River is considering and adopting updates to its Integrated Resource Plan, to promote and support efforts to achieve 100% renewable electricity as a cost-effective, reliable, and impactful strategy to achieve Fort Collins greenhouse gas goals. Section 6. That the City organization must lead by example in this area by working with Platte River and establishing a goal to achieve a 100% renewable electricity portfolio for its own operations before 2030. Section 7. That the City organization must play an important role to build partnerships, inspire community action, and promote involvement by all segments of the community (local businesses, governments, utilities, schools, universities, non-profit organizations, homeowners, and other individuals) toward reducing community-wide greenhouse gas emissions. Section 8. That the City Manager is further hereby directed to prepare each calendar year a report tracking progress toward attaining the goals established herein, in alignment with the annual community-wide greenhouse gas emissions inventory and related protocols, and listing quantified actions for the preceding calendar year and an evaluation of how the three principles have been maintained through implementation of this goal, as adopted in Resolution 2015-030. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 2nd day of October, A.D. 2018. _________________________________ Mayor ATTEST: _____________________________ City Clerk noted with a low confidence and included potential impacts on cost of living or potential impacts on affordable and attainable housing Tradeoffs • Concerns that as we approach a resource mix of 100% renewable electricity could impact grid stability and have exponentially increasing cost Mitigations • Mid-point check-ins will be critical to ensuring the approach is the most cost-effective while also not compromising reliability or affordability • It will be important to continue work with local businesses to ensure they are successfully able to transition and reduce their own risks Key Alignment: • Strategic Objective 4.1 – Achieve Climate Action Plan (CAP) 2020 goals and continue progress toward the 2030 goals. • Strategic Objective 4.3 – Achieve 2020 Energy Policy goals and work toward Climate Action goals for carbon neutrality. ATTACHMENT 4