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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/09/2007 - CLIMATE PROTECTION PLAN/TASK FORCE DATE : January 9 , 2007 WORK SESSION ITEM STAFF : Ken Mannon FORT COLLINS CITY COUNCIL Lucinda Smith SUBJECT FOR DISCUSSION Climate Protection Plan/Task Force . GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED This work session will provide background information about the City of Fort Collins ' greenhouse gas reduction goal, progress on the goal, and staff feedback on the climate resolution that was proposed in August by the Fort Collins Sustainability Group . 1 . Does the Council wish to bring the resolution originally proposed by the Fort Collins Sustainability Group for formal consideration at a future Council meeting? 2 . Does the Council have any other questions or suggestions regarding the resolution or Fort Collins ' progress on greenhouse gas reduction? BACKGROUND On August 15 , 2006, citizen members of the Fort Collins Sustainability Group (FCSG) proposed a resolution to City Council during citizen participation that would : 1 . Convene a task force to update the City ' s greenhouse gas reduction plan; 2 . Ensure the updated plan includes measures that promote renewable energy and energy efficiency; and 3 . Ask the City to sponsor a public forum series to address how Fort Collins can move forward after 2010 to become a "climate neutral city" . At the current rate of progress, the City will not meet its goal to reduce 2010 greenhouse gas emissions by 30% despite significant progress in certain sectors . Since the goal was adopted, a growing proliferation of climate protection technologies as well as market-based economic drivers have emerged. The FCSG resolution would increase the likelihood of capitalizing on these new opportunities, possibly helping the City to reach its 2010 goal after all. It would also afford an opportunity to update the goal for post 2010 while exploring the potential for climate neutrality in Fort Collins . Recent publications studying the economic threats and opportunities from climate protection largely concur that climate protection supports local economic development. Early results in Fort Collins support this assertion, demonstrating that local businesses are now saving over $2 million from voluntary climate protection practices. For these reasons, staff supports the FCSG Resolution with only one minor modification that would expand the focus on energy efficiency and renewables to include the transportation sector. Attachment 2 elaborates on these points . Progress on Fort Collins ' Greenhouse Gas Reduction Goal January 9 , 2007 Page 2 In 1997, the City of Fort Collins joined ICLEI ' s (International Council for Local Environmental Initiatives) Cities for Climate Protection (CCP) Campaign. In doing so, Fort Collins committed to develop a 1990 baseline greenhouse gas inventory and forecast for 2010, set a greenhouse gas reduction goal, and develop a plan to meet the goal. A Staff Technical Team and a Citizen Advisory Committee met for over a year to identify and recommend a prioritized list of cost-effective actions to reduce local greenhouse gas emissions . In 1999, City Council adopted Resolution 1999- 137, setting the goal to reduce citywide greenhouse gas emissions by 2010 to 30% below predicted worst case 2010 levels . The 1999 Fort Collins Local Action Plan to Reduce Greenhouse Gas Emissions (the Plan) outlines how to accomplish that goal. Resolution 1999- 137 called for an interdepartmental Energy Management Team to prepare a biennial report to track progress and identify additional greenhouse gas-reducing activities that merit consideration, in recognition of changing scenarios and advances in technology. Benefits to the City from implementing the Local Action Plan have been wide-ranging and include air pollution reduction, reduced waste in the landfill, increased support for local businesses and the economy, and generally improved quality of life. Below are highlights from specific measures identified in the 1999 Local Action Plan that have now been implemented. • Conversion of traffic signals to energy efficient light-emitting diodes This action was ranked the highest priority for implementation. The conversion of red and green signals to LEDs saves over $ 110,000/year in electricity and maintenance costs, with an initial capital cost of $370,000, for an approximate 3 .4 year payback. • Climate Wise Business Outreach The Fort Collins Climate Wise voluntary business outreach program was initiated in 2000 and has been growing ever since . As of 2004, the 38 partners collectively avoided over 95 ,000 tons carbon dioxide equivalent (CO2e) in that year alone, and reported over $ 1 . 7 million in cost savings since 2001 . The program has now grown to over 50 partners and the greenhouse gas reduction and cost savings are increasing as well. • Wind Energy Program Fort Collins Utilities has offered renewable energy to customers through the Wind Program since 1998 . The program has grown steadily since that time and by 2005 , there were over 1200 residential and over 70 commercial subscribers, avoiding over 11 ,000 tons CO2e in 2005 alone. January 9 , 2007 Page 3 • 2004 Update to Residential Building Code The 2004 energy code update for Fort Collins residential buildings requires energy efficiency improvements (R- 18 walls, low-e windows, more effective furnaces, duct work, right-sized AC systems) . These upgrades will save homeowners $90 - $ 150/yr/home in utility costs and will avoid 1 .2 — 1 . 5 tons CO2e/home/year. • Addition of a centralized recycling drop-off site The Rivendell site opened March 2002 . Recycling is now approximately 1 ,400 tons material each year. This results in approximately 1 , 800 tons CO2e avoided and provides added convenience to citizens for recycling. • Electric Energy Supply Policy In addition to measures included in the Local Action Plan, the adoption of the Electric Energy Supply Policy in 2003 has led to significant greenhouse gas reductions . The targets of the supply policy are : • Reduce per capita electric consumption 10% from 2002 levels by 2012 • Reduce per capita demand peak 15% • 15 % renewable energy by 2017 A 1 % fee on utility bills funds the energy efficiency and renewable energy programs . Collectively, these programs have reduced over 15 ,400 tons CO2e in 2005 . Since adopting the greenhouse gas reduction goal in 1999, three biennial status reports have been completed. (See http ://fcgov.com/climateprotection/policy.php for details .) The most recent progress report (2004) showed that Fort Collins ' residents, businesses and the City government together avoided an estimated 241 ,000 tons of carbon dioxide equivalent (CO2e) that year, or 9% of total citywide emissions . The majority of these reductions have come from recycling by businesses and residents . The 2004 report also indicates the City is not on track to meet the 2010 reduction goal. In 2004, nine percent of citywide emissions were reduced. The 2004 citywide emissions were 2,467 ,000 tons CO2e which exceeds the desired 2010 emissions limit of 2 ,466,000 tons . Updated 2010 Forecast In preparation for this work session, staff prepared a 2005 emissions inventory and an updated 2010 forecast using the most current data and projections available . In order to reach to 2010 goal, Fort Collins will need to achieve community-wide reductions of between 750 ,000 and 1 ,060,000 tons CO2e/year in 2010 . January 9 , 2007 Page 4 Fort Collins Greenhouse Gas Emissions and Forecast (Data) Emissions Year tons CO a Notes 2005 21731 , 000 Updated assumptions from ` 05 Municipal Solid Waste Stud 2010 31523 , 000 "Worst Case" 2010 Projection in 1999 Local Action Plan 2010 39217 , 000 2010 Projection using current forecast from 2005 2010 2 ,466 , 000 Goal 30 % below worst case 2010 levels 750 , 000 — 11060 , 000 Difference between goal and 2010 promections Fort Collins Greenhouse Gas Emissions and Forecast 4, 000 Worst Case 39500 3,523 tons Current 33000 Projection a�.. 3,217 tons N a ' • • • OU 23500 Goal N 2,466 tons c 2, 000 *a / Actual 0 1 , 500 Emssions O / TMM 19000 500 0 MA j MA N N N CEO to to O O CD O Mphh 00 N 0) O Future Opportunities The good news is that the situation is continually evolving and new opportunities are becoming available . There are a number of actions in progress or being developed in Fort Collins that will help close the gap between the current 2010 projection and the goal, illustrated in the table below. January 9 , 2007 Page 5 Initial Estimates of CO2e reduction from likely programs in 2010 tons CO2 avoided Program Low High Demand Side Management 51 100C 51 00 Renewable Energy 34100C 101 00 limate Wise 210100C 235 00 ther: NC Clean Energy Cluster City Energy Performance Contract Biodiesel 36 000 86 00 TOTAd 331 , 001 473 00 * Benefits in 2010, above 2005 levels Initial estimates of the benefits of the measures listed above range from 331 ,000 — 473 ,000 tons CO2e in 2010, or 30 — 60% of the needed reductions . Of these, the Electric Energy Supply Policy is estimated to provide over 50,000 tons of avoided CO2e in 2010 from planned Demand Side Management Activities . Between 34,000 — 101 ,000 tons of avoided CO2e may occur from voluntary and rate-based renewable wind energy. Preliminary estimates of the 2010 benefits from the Climate Wise program growth above 2005 levels range from 210,000 - 235 ,000 tons of CO2e avoided 2010 . Numerous other activities, listed below, can also contribute to greenhouse reduction, but the benefits have not been estimated yet. • Increased waste diversion from the landfill • Green Building in Fort Collins • 2004 Residential energy code (and coming commercial code update) • Water Conservation activities • Carbon sequestration in restored natural areas Attachment 2 provides more information about evolving opportunities and what others are doing. What are the consequences of not meeting the goal? Fort Collins commitment to reduce greenhouse gas emissions is voluntary and there will be no "penalty" if the goal is not met. However, there are several consequences of not meeting the goal. Aside from not being more proactive in helping to address a significant global issue, consequences at the local level include lost opportunities for leadership and to stimulate the economy. An increasing number of studies show that taking action is profitable, and not taking actions can be costly. These are discussed in more detail in Attachment 2 . Climate Neutral Climate neutral is defined having a net zero impact on the climate, typically through a combination of direct greenhouse reduction efforts and purchasing offsets for the remaining emissions . See Attachment 2 for a more detail on climate neutral businesses . Staff Assessment of the Fort Collins Sustainability Group Resolution January 9 , 2007 Page 6 The City ' s interdepartmental Energy Management Team has reviewed and supports the proposed FCSG resolution because updating the City' s climate plan now would enable the City and community to capitalize on technologies and market-based opportunities that have emerged since the Plan was originally developed in 1999 . Recognizing the importance of the transportation sector in local greenhouse gas emissions and potential reductions, staff recommends that Section 2 of the resolution be modified as suggested below, clarifying that energy refers to all energy use, not just energy used in buildings : Section 2 . That the plan described under Section 1 shall include measures to encourage local businesses, governments, utilities, schools, universities , non-profit organizations, homeowners, and other individuals to develop, provide, and apply (as appropriate) renewable energy, and energy efficiency, and transportation technologies, services, and practices within the City of Fort Collins . This suggestion has the support of the Fort Collins Sustainability Group. The financial impact to the City of Fort Collins to implement the tasks contained in the resolution is estimated at $4,000 to convene a task force and conduct a public form series using free speakers . If a consultant is hired to assist with the task force, the costs could increase to a total $ 15 ,000 . The approved 2007 Air Quality Improvement budget can cover the $ 15 ,000 in estimated expenses . ATTACHMENTS I . Fort Collins Sustainability Group proposed resolution. 2 . Fort Collins Progress on Greenhouse Gas Reduction and Future Opportunities . 3 . PowerPoint presentation. 4. Description of the Fort Collins Sustainability Group . Attachment 1 • Resolution to Convene a Task Force to Update the City of Fort Collins Climate Protection Peliey Plan and to Promote Renewable Energy and Energy Efficiency Technologies, Services, and Practices WHEREAS reducing our dependence on gasoline, natural gas, and other fossil fuels is widely recognized as beneficial to the national, state, and local economies; and WHEREAS local businesses currently provide goods and services that reduce the reliance of national, state, and local economies on fossil fuels; and WHEREAS local businesses currently have energy efficiency and renewable energy standards that reduce the reliance of local economies on fossil fuels; and WHEREAS promoting additional green businesses and business activity in renewable energy and energy efficiency would benefit the local economy by providing jobs, property tax revenue, and sales tax revenue; and WHEREAS the City of Fort Collins recognized the importance of promoting the development and application of clean and renewable energy sources by passing Resolution 2006-037, which directs the City Manager to join with other local institutions to develop a • Clean Energy Cluster for Northern Colorado; and WHEREAS the development and application of clean and renewable energy sources and energy efficiency technologies would reduce the emission of greenhouse gases, which are widely recognized as contributing to global climate change; and WHEREAS the magnitude of climate change now predicted by the scientific community will cause severe and costly disruption of human and natural systems throughout the world generally and in Colorado in particular even if current rates of greenhouse gas emissions are reduced immediately; and WHEREAS the scientific community believes that significant reductions in the emissions of greenhouse gases can slow and minimize the impacts of the disruptions associated with climate change; and WHEREAS the City of Fort Collins previously recognized the importance of evaluating and mitigating the City s cumulative impacts on the environment caused by greenhouse gas emission through its participation in the Cities for Climate Protection Campaign; and WHEREAS the City of Fort Collins committed itself to reducing its greenhouse gas emissions to the equivalent of 2,466,100 tons of carbon dioxide or less by 2010 by passing Resolution 99-137; and Page 1 WHEREAS if present trends continue the City of Fort Collins will be responsible for the emission of 30%more greenhouse gases than the target established by Resolution 99-137; NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Manager shall convene a task force, consisting of citizens and members of City staff, which will be authorized and directed to proceed on behalf of the City to develop an updated plan that will describe the steps our community will could take to meet the greenhouse gas emissions target established by Resolution 99-137. Section 2. That the plan described under Section 1 shall include measures to encourage local businesses, governments, utilities, schools, universities, nonprofit organizations, homeowners, and other individuals to develop, provide, and apply(as appropriate) renewable energy, and energy efficiency, and transportation technologies, services, and practices within the City of Fort Collins. Section 3. That the City shall sponsor a public forum series to discuss and address the question of how Fort Collins might move forward after 2010 to become a "climate neutral city," i.e., a city that produces no net greenhouse gas emissions. Page 2 Attachment 2 Fort Collins Proaress on Greenhouse Gas Reduction and Future Opportunities Background On August 15 , 2006, citizen members of the Fort Collins Sustainability Group (FCSG) proposed a resolution to City Council during citizen participation that would 1 ) convene a task force to update the City ' s greenhouse gas reduction plan, 2) ensure the updated plan includes measures that promote renewable energy and energy efficiency, and 3 ) ask the City to sponsor a public forum series to address how Fort Collins can move forward after 2010 to become a "climate neutral city". (See Attachment 1 .) This study session will provide background information about the City of Fort Collins greenhouse gas reduction goal, progress on the goal, and staff feedback on the climate resolution being proposed by the Fort Collins Sustainability Group, with a focus on the following questions and issues : • Identify how the community is doing on greenhouse gas reduction, including a review of relevant City programs . • Provide an assessment of "Is anything broken? " . What are the consequences of not meeting the existing policy goal? • Present staff review of the FCSG ' s proposal. If there are any staff recommendations that differ from the proposal, provide a comparison. • To the extent feasible at this time, discuss the impact on businesses of going to a climate neutral city. Fort Collins ' Greenhouse Gas Reduction Goal and Plan In 1997 , the City of Fort Collins joined ICLEI ' s (International Council for Local Environmental Initiatives) Cities for Climate ProtectionTM (CCP) Campaign. "ICLEI — Local Governments for Sustainability" is an international membership association of local governments dedicated to addressing environmental issues through local action. The Cities for Climate Protection Campaign is ICLEI ' s hallmark program that engages cities, towns, and counties in reducing the pollution that causes global warming. The CCP Campaign started in 1993 . By now, more than 200 cities, towns , and counties in the United States and more than 770 communities worldwide participate in the CCP Campaign. By joining CCP in 1997, Fort Collins committed to develop a 1990 baseline greenhouse gas inventory and forecast for 2010, set a greenhouse gas reduction target, and develop a plan to meet the target. A Staff Technical Team and a Citizen Advisory Committee met for over a year to identify and recommend a prioritized list of cost-effective actions to reduce local greenhouse gas emissions. 1 1990 Emissions Inventory 2010 Emissions Forecast 1 .366 Million tons CO2e 3.523 Million Tons CO2e Waste Waste 2% 3% Electricity Transport 33% 31 % Electricity 42% Transport 51 % Natural Gas Natural Gas 13% 25% The 1990 emissions inventory shows 1 . 366 million tons of carbon dioxide equivalent (CO2e, which includes carbon dioxide and methane emissions), with the majority of emission produced by electricity use. The 2010 forecast was developed by applying ` business as usual ' projections from 1997 out to the year 2010 . This included a seven percent annual increase in vehicle miles traveled, causing the transport sector to increase significantly. The 2010 forecast, often referred to as the "worst case forecast", shows a 160% increase in emissions above 1990 levels . In 1999 , City Council adopted Resolution 99- 137 , setting the goal to reduce citywide greenhouse gas emissions 30% below predicted worst case 2010 levels, by 2010 . The 1999 Fort Collins Local Action Plan to Reduce Greenhouse Gas Emissions (the Plan) outlines how to accomplish that goal. Resolution 99- 137 called for an interdepartmental Energy Management Team to prepare a biennial report to track progress and identify additional greenhouse gas-reducing activities that merit consideration, in recognition of changing scenarios and advances in technology. Greenhouse Gas Reduction Highlights and Progress Benefits to the City from implementing the Local Action Plan have been wide-ranging and include air pollution reduction, reduced waste in the landfill, increased support for local businesses and the economy, and generally improved quality of life . There have been several notable successes in emissions reduction efforts, including the Climate Wise business outreach program, the voluntary Wind Program, the demand side management and renewable energy programs supported by the Electric Energy Supply Policy, the opening of Rivendell recycling center in 2003 and the conversion of traffic signals to light-emitting diodes in 2001 (the top ranked measure in the plan.) Below are highlights from specific measures identified in the 1999 Local Action Plan that have now been implemented. Conversion of traffic signals to energy efficient light-emitting diodes This action was ranked the highest priority for implementation. The conversion of red and green signals to LEDs saves over $ 110,000/year in electricity and maintenance costs, with an initial capital cost of $370,000, for a � 3 .4 year payback. 2 Climate Wise Business Outreach The Fort Collins Climate Wise voluntary business outreach program was initiated in 2000 and has been growing ever since . As of 2004, the 38 partners collectively avoided over 95 ,000 tons CO2e in that year alone, and reported over $ 1 . 7 million in cost savings since 2001 . The program has now grown to over 50 partners and the greenhouse gas reduction and cost savings are increasing as well . Wind Energy Program Fort Collins Utilities has offered renewable energy to customers through the Wind Program since 1998 . The program has grown steadily since that time and by 2005 , there were over 1200 residential and over 70 commercial subscribers, avoiding over 11 ,000 tons CO2e in 2005 alone. 2004 Update to Residential Building Code The 2004 energy code update for Fort Collins residential buildings requires energy efficiency improvements (R- 18 walls, low-e windows, more effective furnaces , duct work, right-sized AC systems) . These upgrades will save homeowners $90 - $ 150/yr/home in utility costs and will avoid 1 . 2 — 1 . 5 tons CO2e/home/year. Addition of a centralized recycling drop-off site The Rivendell site opened March 2002 . Recycling is now approximately 1 ,400 tons material each year. This results in � 1 , 800 tons CO2e avoided and provides added convenience to citizens for recycling. Electric Energy Supply Policy In addition to measures include in the Local Action Plan, the passage of the Electric Energy Supply Policy in 2003 has led to significant greenhouse gas reductions. The targets of the supply policy are : ■ Reduce per capita electric consumption 10% from 2002 levels by 2012 ■ Reduce per capita demand peak 15% ■ 15 % renewable energy by 2017 A 1 % fee on utility bills funds the energy efficiency and renewable energy programs . Collectively, these programs have reduced over 15 ,400 tons CO2e in 2005 . Since adopting the greenhouse gas reduction goal in 1999 , three biennial status reports have been completed. (See http ://fcgov. com/climateprotectioWpolicy_.php for details .) The amount of greenhouse gas emissions avoided has grown steadily over time, but the total citywide emissions have continued to grow as well. The most recent progress report (2004) showed that Fort Collins ' residents, businesses and the City government together avoided an estimated 241 ,000 tons of carbon dioxide equivalent (CO2e) that year, or 9% of total citywide emissions . As in past years, the majority of these reductions have come from recycling by businesses and residents . Recycling activities reduce landfill emissions as well as emissions from embodied energy that would be needed to manufacture goods from raw materials . 3 Fort Collins Greenhouse Gas Emissions Reductions Progress (241 ,000 tons CO2e in 2004) GHG Reductions 4,000 35500 9% N 35000 10% reduction re n OU 2, 500 N ® Reductions c 2,000 F ■ Emissions c 1 ,500 arg t c I to I ctu I 1 ,000 500 0 1990 2001 2004 2010 The 2004 report also indicates that the City is not on track to meet the 2010 reduction goal . In 2004, nine percent of citywide emissions were reduced. The 2004 citywide emissions were 2 ,467,000 tons CO2e which exceeds the desired 2010 emissions limit of 2,466,000 tons . The transportation sector comprises a significant portion of the projected 2010 emissions, yet it has been difficult to achieve significant progress in that sector. The two charts below illustrate that while transportation represents a large percentage of planned reductions, in reality we have only achieved a small reduction in the transportation sector. Emissions Reduction Measures in Local Action Plan Implemented Emissions Reduction (2004) Measures in Plan to Redcue 1 . 11 Milions Tons CO2e 2004 Emissions Reductions (241 ,000 tons CO2e) Other CSU Renewable Vegetation 5% 9% ° 2% Vegetation s /° Energy 11 % Energy 20% Transport Consv. 1 % 23% Waste 30% Solid Waste Reduction Transport 50% 45% This is because several of the large transportation measures contained in the 1999 Local Action Plan have not been met, including: • Prevent Fort Collins vehicles miles of travel growth rate from exceeding population growth rate • Achieve tighter national fuel efficiency standards • Complete Fort Collins to Denver Commuter Rail These three measures alone account for 43 percent of emissions reduction measures contained in the Plan, and obviously some are not directly within local control. 4 Current Situation and Updated 2010 Forecast Fort Collins is not on track to meet the 2010 emissions reduction goal, as illustrated by the graph below. In addition to showing the worst case 2010 forecast included in the Local Action Plan, it shows a current 2010 emissions projection that was prepared from 2005 forward using the most current data and projections from Xcel Energy, Fort Collins Utilities and the 2005 solid waste model that was prepared recently for Fort Collins . These data indicate that in order to reach to 2010 goal, Fort Collins will need to achieve community-wide reductions of between 750,000 and 1 ,060,000 tons CO2e/year in 2010 . Fort Collins Greenhouse Gas Emissions and Forecast 4, 000 Worst Case 37500 3, 523 tons Current 3 , 000 Projection s; 3,217 tons N M . O 2 , 500 U Goal N • 2,466tons c 2 , 000 0 Actual Emissions c 1 , 500 1 , 000 500 0 CC tC CC O O O CO tD CC O O � O cc N O O Fort Collins Greenhouse Gas Emissions and Forecast (Data) Emissions Year (tons CO2e) Notes 1990 1 , 3661000 2003/2004 Climate Protection Status Report 1995 17623 , 000 2003/2004 Climate Protection Status Report 1997 11862 , 000 2003/2004 Climate Protection Status Report 2000 2 , 0741000 2003/2004 Climate Protection Status Report 2001 2 , 1431000 2003/2004 Climate Protection Status Report 2002 27236 , 000 2003/2004 Climate Protection Status Report 2003 22396 , 000 2003/2004 Climate Protection Status Report Using updated 2004 data from the 2005 Municipal Solid 2004 22569 , 000 Waste Study Using updated assumptions from the 2005 Municipal Solid 2005 2 , 731 , 000 Waste Study 2010 325231000 "Worst Case" 2010 Projection in 1999 Local Action Plan 2010 33217 , 000 2010 Projection using current forecast from 2005 2010 2 ,4661000 Goal (30% below worst case 2010 levels) 7507000 — 110601000 Difference between goal and 2010 projections 5 Future Opportunities The good news is that the situation is continually evolving and new opportunities are becoming available. There are a number of actions in progress or being developed in Fort Collins that will help close the gap between the current 2010 projection and the goal, illustrated in the table below. Initial Estimates of CO2e reduction from likely programs in 2010 (tons CO2 avoided )* Program Low High Demand Side Management 51 , 000 51 , 000 Renewable Energy 341000 1011000 Climate Wise 210 , 000 235, 000 Other: NC Clean Energy Cluster City Energy Performance Contract Biodiesel 367000 86 , 000 TOTAL 331 ,000 4735000 * Benefits in 2010, above 2005 levels Initial estimates of the benefits of the measures listed above range from 331 ,000 — 473 ,000 tons CO2e in 2010, or 30 — 60% of the needed reductions . Of these, the Electric Energy Supply Policy is estimated to provide over 50,000 tons of avoided CO2e in 2010 from planned Demand Side Management Activities . Between 34,000 — 101 ,000 tons of avoided CO2e may occur from voluntary and rate-based renewable wind energy. Preliminary estimates of the 2010 benefits from the Climate Wise program growth above 2005 levels range from 210,000 - 235 ,000 tons of CO2e avoided 2010 . Numerous other activities, listed below, can also contribute to greenhouse reduction, but the benefits have not been estimated yet. • Increased waste diversion from the landfill • Green Building in Fort Collins • 2004 Residential energy code (and coming commercial code update) • Water Conservation activities • Carbon sequestration in restored natural areas What are the consequences of not meeting the goal? Fort Collins commitment to reduce greenhouse gas emissions is voluntary and there will be no "penalty" if we do not meet the goal. However, there are several consequences of not meeting the goal. Aside from not being more proactive in helping to address a significant global issue, consequences at the local level include lost opportunities for leadership and to stimulate the economy. An increasing number of studies show that taking action is profitable, and not taking actions can be costly. A few examples are given below. 6 Climate Wise (illustrates local benefits)— The 2004/2005 Climate Wise Annual Report indicates that the cumulative cost savings from projects completed by partners through 2004 are $ 1 . 5 million, the same year the partners collectively reduced 95 ,000+ tons CO2e, or 40% of total citywide emission avoided in that year. Multnomah County and Portland, OR (illustrates regional bene ats) A recent presentation about the relationship between economy and greenhouse gas emissions reductions show that while net greenhouse gas emissions in Multnomah County are about at 1990 levels and per capita CO2 emissions have dropped over 12%, the inflation-adjusted payroll has increased 29% and employment has increased � 12% . Rockefeller Brothers Fund (illustrates corporate and national benef ts� Organizations taking action to reduce greenhouse gases end up saving money. David Northrop, Director of Sustainable Development for the Rockefeller Brothers Fund reported in July 2006, `Every company and city taking action to reduce greenhouse gas emissions has saved money doing so . " Examples include . Entity Greenhouse Gas Reductions 111111111ff Saved DuPont 72% since 1990 $ 2 Billion Alcoa 26% since 1990 $ 100 Million by 2006 British Petroleum 10% below 1990 $ 650 Million Net Present Value IBM 38% $ 791 Million Germany 19% since 1990 450,000 new jobs in renewable energy Source : http ://northamericancongress . iclei. org/files/NAC—Presentations/0713 - Thursday_Plenaries/Michael Northrop.ppt Stern Report (illustrates global benefits) A report released in October 2006 by Sir Nicholas Stern, Head of the Government Economic Service, and Adviser to the UK Government on the Economics of Climate Change and Development and former Chief Economist of the World Bank, states : " There is still time to avoid the worst impacts of climate change, if we take action now . . . . . If we don' t act, the overall costs and risks of climate change will be equivalent to losing at least 5 % of global GDP per year, now and forever. If a wider range of risks and impacts is taken into account, the estimates of damage could rise to 20% of GDP or more . . . . . . In contrast, the cost of action -- reducing greenhouse gas emissions to avoid the worst impacts of climate change — can be limited to around 1 % of GDP per year." Stern Report Source : http ://www.hmtreasury.gov.uk/independent—reviews/stern—review—economics—climate—c hange/sternreview_index. cfm Evolving Opportunities and Action by Others Market opportunities and technologies are evolving rapidly to support carbon reduction activities . Technology-based advancement are occurring in the areas of biofuels, 7 including algae-based biofuels, electricity grid distribution improvements and biorefineries that integrate biomass conversion processes and equipment to produce fuels, power, and chemicals from biomass . In Europe, carbon markets are thriving. Although the United States does not have a national carbon registry and trading policy, voluntary markets are emerging here as well. The Regional Greenhouse Gas Initiative (RGGI) is a greenhouse gas cap-and-trade system being developed by seven northeast states, planned for entry into force by 2009 . The State of California is also developing a cap-and-trade system to comply with its strict greenhouse gas emission targets, and is interested in linking with RGGI or other carbon markets . The Chicago Climate Exchange (CCX) also provides a voluntary mechanism for trading carbon. Colorado participants in the CCX include New Belgium Brewing, and City of Boulder and the City of Aspen. In addition to the regional trading programs, states are taking actions. Several states have already established greenhouse gas reduction goals and have developed statewide plans State Commitments to Reduce Greenhouse Gas Emissions 1990-2020 Forecast State (% increase) 3WState Goal AZ 149 % 2000 levels by 2020 ; 50% below by 2040 CA 34 % 1990 levels by 2020, 80% below by 2050 CT 32 % 1990 levels by 2010 ; 10% below by 2020 ; 75 -85 % ultimately ME 34 % 1990 levels by 2010 ; 10% below by 2020 ; 75 -85 % ultimately NJ 5 % below 1990 by 2005 NM 48-64 % 2000 levels by 2012 ; 10% below by 2020 ; 75 % by 2050 OR 38 % 1990 levels by 2010; 10% below by 2020 ; 75 % by 2100 Puget Sound 37 % 1990 levels by 2010; 10% below by 2020 ; 75 % by 2100 1990 levels by 2010 ; 10% below by 2020 ; 75% -85 % RI 35 % ultimately Source : Information compiled for Colorado Climate Project, see http://www.coloradoclimate.org/Climate—Action—Panel.cfm In Colorado, the Rocky Mountain Climate Organization is working with stakeholders to develop a statewide plan for Colorado by the end of 2007 for presentation to the Governor. Some of the actions under consideration, if ultimately adopted at the state level, would establish a strong framework that would significantly enhance local communities ' opportunities to reduce emissions . Mayor Hutchinson is serving as one of Project Directors for this project. Across the country, more and more local government are making commitments to reduce emissions and developing plans to achieve their commitments . Over 200 cities and counties have now joined ICLEI ' s Cities for Climate Protection Campaign that Fort Collins participates in. As of December 20, 2006, 349 mayors across the country have signed the "Seattle Mayor' s Agreement, thus pledging their community to : 8 • Strive to meet or beat the Kyoto Protocol targets in their own communities, through actions ranging from anti-sprawl land-use policies to urban forest restoration projects to public information campaigns ; • Urge their state governments , and the federal government, to enact policies and programs to meet or beat the greenhouse gas emission reduction target suggested for the United States in the Kyoto Protocol -- 7% reduction from 1990 levels by 2012 ; and • Urge the U. S . Congress to pass the bipartisan greenhouse gas reduction legislation, which would establish a national emission trading system Denver has committed to reduce per capita greenhouse gas emissions ten percent below 1990 levels by 2011 in their GreenPrint Plan. Boulder recently passed a carbon tax that will enable their community to reduce emissions 7% below 1990 levels by 2012 through increasing energy efficiency in homes, switching to renewable energy and alternative fuels, and reducing vehicle miles of travel . Recognizing special vulnerability to disruptions in water supply from climate change, the City of Aspen launched the Canary Initiative in 2005 to reduce global warming pollution, inform the public about impacts and solutions, and advocate for actions at all levels of government. Carbondale has committed to reduce their greenhouse gas emissions 25 % below 2004 levels by 2012 . To help them reach that goal, Carbondale has creatively financed a large solar energy project using incentives that Xcel Energy is offering under their requirement to address Amendment 37 . Climate Neutral Climate neutral is defined having a net zero impact on the climate, typically through a combination of direct greenhouse reduction efforts and purchasing offsets for the remaining emissions . The Climate Neutral Network (http ://climateneutralnetwork. org/index.htm) is a non- profit organization dedicated to helping companies, communities, and consumers achieve a net-zero impact on the Earth's climate. The network provides technical support and a science-based "Climate Cool" certification. By offsetting greenhouse gas emission from their entire business operation, Shaklee U. S . is the first company in the U. S . to become a Climate Neutral enterprise . Several other companies offer Climate Cool certified products, services or events including Jiffy Lube, FedEx, BP Amoco, Interface Carpets, the Lenox and the Copley Square hotels in Boston, and the 2002 Winter Olympic Games . Without fundamental regulatory changes at the state or national level, it is difficult to asses the impact on all local businesses of achieving climate neutrality. However, a number of local or private organizations have established goals to achieve climate neutrality, including Seattle City Light, Oberlin College (Climate Neutral by 2020), and the City of Stockholm (Fossil Fuel Free by 2050). Closer to home, Boulder County is exploring climate neutrality and The Brendle Group, a Fort Collins engineering and sustainable design consulting firm, has become the first business in Colorado to become a certified Climate Neutral business for reducing or offsetting all their carbon emissions . A 9 recent assessment of the Fort Collins Chamber of Commerce operational activities revealed that it would be possible for them to purchase offsets to achieve climate neutrality at a relatively low cost. Staff Assessment of the Fort Collins Sustainability Group Resolution The City' s interdepartmental Energy Management Team has reviewed and supports the proposed FCSG resolution because updating the City ' s climate plan now would enable the City and community to capitalize on technologies and market-based opportunities that have emerged since the Plan was originally developed in 1999 . Recognizing the importance of the transportation sector in local greenhouse gas emissions and potential reductions, staff recommends that Section # 2 of the resolution be modified as suggested below, clarifying that energy refers to all energy use, not just energy used in buildings : Section 2 . That the plan described under Section 1 shall include measures to encourage local businesses, governments, utilities, schools, universities, non- profit organizations, homeowners, and other individuals to develop, provide, and apply (as appropriate) renewable energy, and energy efficiency, and transportation technologies, services, and practices within the City of Fort Collins . This suggestion has the support of the Fort Collins Sustainability Group . The financial impact to the City of Fort Collins to implement the tasks contained in the resolution are estimated at $4,000 to convene a task force and conduct a public form series using free speakers . If a consultant were hired to assist with the task force, the costs could increase to a total $ 15 ,000 . The approved 2007 Air Quality Improvement budget can cover the $ 15 ,000 in estimated expenses. 10 �.r Fort Collins CLIMATE PROTECTION Plan / Task Force Fort Collins City Council Study Session January 9, 2007 Resolution Proposed by Citizens Proposed on August 15 , 2006 by Fort Collins City of Fort Collins : Cities for Climate Protection Project Sustainability Group members : • Convene a task force to update the City's GHG plan . • Ensure the updated plan includes measures that promote renewable energy and energy efficiency . • Ask the City to sponsor a public forum series to address how Fort Collins can move forward after 2010 to become a climate neutral city". Outline • Fort Collins progress on the greenhouse gas reduction target • Consequences of not meeting the City's adopted goal ? • Staff review of the proposed resolution • Impact on businesses of going to a climate neutral city Questions for Council to Consider • Do you wish to formally consider the Fort Collins Sustainability Group's proposed resolution at a future Council meeting ? • Do you have any questions or suggestions regarding the proposed resolution or Fort Collins' progress on greenhouse gas reduction ? Fort Collins Joins +Cities for Climate Protection Campaign City Council passed a resolution in July 1997, voluntarily committing to : conduct a greenhouse gas audit, establish a greenhouse gas reduction target, develop a strategy for meeting it. City of Fort Collins : Cities for Climate Protection Project 1990 Emissions Inventory . Emissions 1 .366 million tons . . Waste Transport Natural Gas 31 % Electricity City of Fort Collins : Cities for Climate Protection Project 3.523 Million Tons CO2e Waste 3% Electricity 33% Transport 51 % Natural Gas 13% Greenhouse Gas Reduction Target 3.523 case N U 2.536 w O � 1 .861 � 1 .36 1 .621 c O 1990 1995 1997 2004 2010 2010 levels, by 1 1 4 City of Fort • llins : Cities for Climate Protection • Loca I Action Plan ( 1999Other Energy Vegetation Energy Waste Transport Transportation Waste Reduction Vegetation Purchasing Education Energy Efficiency " Install LEDs in all traffic signals" Cost $370 , 000 - Financed through lease- purchase agreement • Measured 85 % efficiency Saves $ 110 , 000/year in energy & maintenance costs Increases traffic signal brightness City of Fort Collins : Cities for Climate Protection Project Energy EfficiencSquare MMBTU/ Percent " Reduce City Building Energy Use 15 % per Year MMBTU Footage Sq Foot sq . ft . below 1990 levels" Improvement 2002 105, 326 7445144 2004 . . Climate Wise Promotes voluntary GHG Reduction through : Energy efficiency Pollution prevention Waste reduction Transportation reduction Business Benefits : � � � r ■ Technical assistance ■ Public recognition cl � m � w , aE ■ Peer networking opportunities ■ Carbon quantification ■ Cost Savings City of Fort Collins : Cities for Climate Protection Project Climate Wise Results ! Goal : Reduce greenhouse gas emissions � by 93 , 390 tons/year eCO2 by 2010 I ' 2004 Actual : 95 , 452 tons/year eCO2 � $ 1 . 7 Million savings r Climate Wise, Business Smart. Electric Energy Supply Policy RenewableWind Energy 114647 W 7524 , , , 107000 157000 20,000 2005 Tons CO2e City of Fort Collins : Cities for Climate Protection Project Waste R ' • • A • • a centralized recycling drop-off Rivendell opened March 2002 Tonnage now ry 1 , 400 tons 800 tons CO2 avoided A • • - • convenience for • 004 Emissions vs . Reductions Fort Collins 2004 Greenhouse Gas Reductions 2004 Greenhouse Gas Emission (241 ,000 tons CO2e) 2.47 million tons CO2e Csu Waste 10% Renewable 2% 0% r 6% Energy Transport Vegetation Consv 33% Electricity 11 % 21 % 47% Transport 1 % Natural Gas 18% - - Solid Waste Reduction 51 % 8 City of Fort Collins : Cities for Climate Protection Project How are we doing ? GHG Reductions , Sol 3,500 9% N 3,000 10% reduction re ion v 2,500 reduction y ® Reductions 0 2,000 F ■ Emissions c 1 ,500 t o I ctu I ctu I 1 ,000 500 0 1990 2001 2004 2010 4,000 Worst Case 31500 3,523 tons Current 3 ,000 Projection 'N t: • 3,217tons O 2,500 U Goal 2,466 tons c 2 ,000 Actual Emissions 0 1 ,500 0 1 ,000 500 0 0 O A 00 N W O 9 City of Fort Collins : Cities for Climate Protection Project 4,000 3 , 500 too 31000 1, 0571000 N w ... 750,000 O 2 , 500 U N 0 2 , 000 Actual p • Emissions 0 1 , 500 0 1 , 000 500 0 i i N N N t0 O O O A 00 N O O What Will Help Fill the Gap ? (tons CO2 avoided )* Program Low High Demand Side Management Munro, 00 51 , 000 Renewables 34 , 000 101 , 000 Climate Wise 210 , 000 235 , 000 Other: NC Clean Energy Cluster City Energy Perf. Contract Biodiesel 36 , 000 86 , 000 TOTAL 331 , 000 473 , 000 * Benefit in 2010 , from 2005 10 City of Fort Collins : Cities for Climate Protection Project 3. 600 3.400 / 3.200 Ov 3. 000 / 0000 c // / 0 2. 800 /i 478,0 DO tons 2. 600 63 /° 2.400 2.200 2. 000 2005 2010 3. 600 3.400 / 3.200 / Ov 3. 000 / 0000 N ° 2. 800 /� / 331 ,0 0 tons 2. 600 31 /° 2.400 2.200 2.000 2005 2010 11 What Else Can Help Fill the Gap ? • Increased waste diversion from the landfill City of Fort Collins : Cities for Climate Protection Project • Green building in Fort Collins • 2004 Residential energy code (and coming commercial code update) 12 • Water conservation activities • Carbon sequestration in restored natural areas • New renewable energy projects Consequences of not meeting + the Goal • No �� penalty" or ��sanction " for not meeting it • Possible lost opportunities for economic development and leadership City of Fort • llins : Cities for Climate Protection • Climate Change 13 can Change Colorado Less Snow More Droughts 1 �Y Less Water More Fires y � t Others Who Are Benefiting + from Carbon Reduction • Climate Wise program partners • Portland , OR • Carbondale, CO employmentCity of Fort Collins : Cities for Climate Protection Project 140 Payroll (adj for > Covered CM) 110 CO2 emissions too Per capita CO2 emissions . , - i0 2001 �,�� Carbondale , CO 14 +" Creating a strong Carbondale economy with clean energy" - Reduce municipal GHG 25 % below 2004 levels by 2010 - Reduce community-wide GHG 25% below 2004 levels by 2012 Passed a community bond measure allowing $ 1 . 8 million in bonds for 2 large solar energy projects . Xcel Energy will provide $ 300 , 000 in rebates and will purchase $ 1 . 2 million in solar energy credits . Climate Neutral "No net carbon emissions " • Achieved by reducing and offsetting carbon emissions The Brendle Group - Climate Neutral certified Fort Collins Chamber - climate neutral options Staff Review of Proposed Resolution • Support the proposed resolution • Propose one word change The updated plan wil/. . . include measures to. . . de ve%p, provide and app/y. . . , renewable energy, energy efficiency, and transportation techno%pies, services, and practices . . . . • Financial Impact Estimates $ 4, 000 lower estimate $ 15 , 000 upper estimate ( includes consulting help) Questions for Council to Consider • Do you wish to formally consider the Fort Collins Sustainability Group's proposed resolution at a future Council meeting ? • Do you have any questions or suggestions regarding the FCSG proposed resolution or Fort Collins' progress on greenhouse gas reduction ? Fort Collins Sustainability Group Attachment 4 The Fort Collins Sustainability Group (FCSG) is a group of Fort Collins citizens that have come together to consider ways to increase climate protection activities in Fort Collins. Their mission statement is given below. The mission of the Fort Collins Sustainability Group (FCSG) is to develop and advocate a vision and strategy for becoming a sustainable community in partnership with key stakeholders. A sustainable community is one that enables its members to thrive, both economically and socially, without compromising the welfare of future generations. It exists in harmony with our environment. FCSG is currently convened by Kevin Cross, and has a five member steering committee. The group has been meeting periodically since early 2005 to consider effective approaches to raise Fort Collins efforts in greenhouse gas reduction, recognizing the severe impact that climate change is predicted to have on human and natural systems throughout the world, and in Colorado in particular. During 2006, representatives from the FCSG have obtained support for their resolution from the Air Quality Board, the Natural Resources Board and the Electric Board. Several community groups have also endorsed the resolution including the Audubon Society, the Northern Colorado Renewable Energy Society, the Rocky Mountain Sustainable Living Association, and the Center for Justice, Peace and the Environment. In addition, the Fort Collins Coloradoan Editorial Board supported the resolution in their September 15, 2006 editorial opinion. Participants in this effort have included representatives from the business community, academia (CSU's atmospheric science), renewable energy interests, other community groups and a member of the 1998 Fort Collins Citizen Advisory Committee who helped develop the Fort Collins Local Action Plan to Reduce Greenhouse Gases. Several members of the group will be present at the January 9 work session in case Council has any further questions about the FCSG or the proposed resolution.