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HomeMy WebLinkAboutMemo - Read Before Packet - 3/16/2021 - Memorandum From John Phelan And Molly Saylor Re: March 16, 2021 Updated Council Materials For Our Climate FutureEnvironmental Services 222 Laporte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6600 fcgov.com/environmental services MEMORANDUM Date:March 15, 2021 To:Mayor Troxell and City Councilmembers Thru:Darin Atteberry, City Manager Kyle Stannert, Deputy City Manager Theresa Connor, Interim Utilities Executive Director Jacqueline Kozak Thiel, Chief Sustainability Officer From:John Phelan, Energy Services Senior Manager Molly Saylor, Senior Specialist, Environmental Sustainability Re: March 16, 2021 Updated Council Materials for Our Climate Future This memo is to provide Council with updated information for the March 16 th Resolution for Our Climate Future. 1) The Energy Board considered the Our Climate Future Plan at their March 11 meeting. Summary Board member Tenbrink moved to recommend City Council to adopt the Our Climate Future Plan on March 16, 2021. Vice Chairperson Moore seconded the motion. Discussion: A Board member commented on how the Energy Board has always been supportive of energy and climate policy planning, that they are excited to see this plan come to fruition and that the Board will encourage staff and Council to continue to be ambitious with implementation. Vote on the motion: It passed unanimously 7-0, with one absent. Draft minutes from the March 11 Energy Board meeting are attached. 2) In response to feedback sent to Council regarding a review of climate goals and industrial process and product use (IPPU) emissions, Staff is recommending: That Council consider revisions to the resolution prior to adoption including: o New whereas clause:Whereas, City Council supports efforts to draw down all sources of emissions, including from Energy, Waste, Transportation, Water, and Industrial Process and Product Use (IPPU) emissions, recognizing that IPPU emissions are an especially potent source of long-lived greenhouse gases, and to work with emitters on reduction strategies; and o New Section III clause:That the City Council directs the City Manager, beginning in 2022 and continuing at two year intervals, to leverage the Our Climate Future calibration cycle set forth in the Our Climate Future Plan to consider the need for updates to the waste, energy, and climate goals established for 2030 and 2050 so that those goals remain in alignment with changes to market conditions, community priorities, developments in technology and scientific findings regarding climate change. o Note: The wording of these clauses is subject to legal review as it is prepared for potential integration into the resolution. Pending inclusion of a new Section III clause, Staff will prepare a budget offer for 2022 to review the 2030 and 2050 community climate goals with best practice research, analysis, evaluation and engagement. Attachment: Draft Energy Board minutes, abridged for OCF, March 11, 2021 ENERGY BOARD REGULAR MEETING DRAFT ABRIDGED FOR OUR CLIMATE FUTURE PLAN March 11, 2021 5:30 pm Remote Zoom Meeting ROLL CALL Board Members Present: Jeremy Giovando, Bill Becker, Alan Braslau, Marge Moore, Steve Tenbrink, John Fassler, Sue McFaddin Board Members Absent: Dan Gould OTHERS PRESENT Staff Members Present: Adam Bromley, Christie Fredrickson, Tim McCollough, Cyril Vidergar, John Phelan, Molly Saylor, Leland Keller, Kraig Bader, Lisa Rosintoski, Lance Smith Platte River Power Authority: Trista Fugate Members of the Public: Tim, Rick Coen OUR CLIMATE FUTURE PLAN John Phelan, Energy Services Senior Manager Molly Saylor, Senior Specialist Environmental Sustainability (attachments available upon request) The City has over 20 years of experience working on climate action, energy, and waste reduction; the Our Climate Future (OCF) ambitious goals through the next decade. Climate action is and always has been an exercise in integration and alignment, and Our Climate Future is composed of joint updates to the Climate Action Plan, the Energy Policy, and the Road to Zero Waste plan. It also provides the City and the community an opportunity to strengthen collaboration while breaking down silos. On Tuesday, March 16 staff will be asking Council to adopt the Our Climate Future Plan, which includes the implementation structure and process (Big Moves and a portfolio of Next Moves, and an evergreen two-year calibrate and review cycle), as well as updated waste and energy goals. The materials presented to Council will also include the 2021-22 Two-Year Tactical Plan and an action guide. The two- year calibrate and review cycle allows the plan to be agile with respect budget cycles, changes in technology, as well as community response and feedback. Staff received constructive feedback on OCF from both Council and community, and they were able to address all key themes within the final version of the OCF plan. These themes included concern over the waste diversion goal, maintaining an equity driven focus in implementation, reducing jargon, clarity on how the community can act, and interest in things such as regionalism, carbon mitigation and metrics. 030 goals: 100 percent renewable electricity, 100 percent waste diversion, and 80 percent reduction in carbon emissions. These goals will help carry the community onward to a carbon neutral future. Energy Goals are to provide 100 percent renewable electricity by 2030 with grid and local sources, to provide five percent of community electricity from local distributed renewable sources by 203, and to achieve a 20 percent reduction in forecast electricity use between 2021 and 2030 through efficiency and conservation programs in all building types and industrial processes. OCF also outlines additional goals around reliability metrics, natural gas efficiency (10 percent reduction in forecast usage), ENERGY BOARD REGULAR MEETING energy code adoption (both adoption and enforcement of updated codes on a three-year cycle), grid flexibility (bidirectional demand flexibly capacity of five percent of peak loads), and pricing principles. OCF identifies three Critical Path strategies, as well as a flexible portfolio approach of strategies to reach the goals. The Critical Path requires ongoing and consistent efforts through 2030 2030 goal of an 80 percent reduction from the 2005 levels of carbon inventory emissions. The Critical Path includes the following strategies: 100 percent renewable electricity, expansion of the local and regional transit network, and community-wide organic waste diversion. The flexible portfolio will be reviewed and calibrated with the community every two years, and is responsive to changes in technology and markets, other levels of government (state and federal) The two-year tactical plan includes detailed descriptions of the initial Next Moves (who is leading, supporting partners, near term investments, and case studies), and clear expectations of OCF actions in 2021 and 2022. The Tactical Plan will be updated next year to get on Budgeting for Outcomes process. Staff selected the tactical plan strategies with the continuation of existing initiatives and applying an equity lens (how do these programs perform and support the outcomes the City is seeking from its equity goals). Board member Tenbrink wondered how population growth is factored into the goal of 20 percent reduction in forecast electricity use. Mr. Phelan noted this goal is not a per-capita metric, so staff looks at efficiency program savings for the program year, as well as how that savings carries forward year to year. For example, installing an LED lamp in a streetlight has an accumulated savings over time. Board member Braslau noted that other fuels, such as biomass (plant or animal material used as fuel to produce electricity or heat) or hydrogen, can help to reduce natural gas usage and they are not mentioned. Mr. Phelan agreed that was a good point, there are no Next Moves specifically pointing to biomass at this time, and he will take note of that for future review and calibration cycles. There are multiple ways to reduce natural gas and it could certainly be more inclusive. Board member McFaddin asked where she can view the tactical plan in its entirety, she would like to view . Mr. Phelan said the entire OCF Plan the City Council meeting on March 16. Chairperson Becker wondered if the electricity reduction goal is netted with the potential of electrification in the community since they are competing against each other within the community. Mr. Phelan said the goal is a 20 percent reduction in what the usage would have been with all the other activities (growth, weather, electrification, etc.), and in the way this goal is structured, the target for efficiency would go up as well. Mr. Becker also noted that a five percent reduction in peak load does not feel all that ambitious, but he wondered what the context of that goal might be. Mr. Phelan said five percent today would equate to roughly 15 megawatts of capacity, and he anticipates this goal will evolve over time. Board member Fassler wondered how confident staff is in forecasted energy usage. Mr. Phelan said not everything is captured in the included chart, and the forecast is not a year-by-year forecast, and staff has much work to do in integrating their forecasts at the local level, as well as integrating that with Platte River at the macro level. It is possible carbon emissions will go up in the interim until Platte River makes a change in their resource mix (in the coming years). Chairperson Becker certain items as priority to ensure that there will always be funding. Mr. Phelan said staff is presuming, in ENERGY BOARD REGULAR MEETING the near term at least, that funding for the programs that Energy Services provides will remain, it equates to about 4.5 percent of Utility revenues. How that money is invested will need to shift in the future, toward electrification and grid flexibility. Additionally, the Utility cannot incentivize their way to these goals, the -in and investment is necessary. He added that some of the barriers may be outside the Board member McFaddin said she recognizes how hard it is to implement some of these ambitious ideas and goals, but she believes the community, echoed by Mayor Troxell, are eager to get these goals and projects moving. Board member Tenbrink moved to recommend City Council to adopt the Our Climate Future Plan on March 16, 2021. Vice Chairperson Moore seconded the motion. Discussion: A Board member commented on how the Energy Board has always been supportive of energy and climate policy planning, that they are excited to see this plan come to fruition and that the Board will encourage staff and Council to continue to be ambitious with implementation. Vote on the motion: It passed unanimously 7-0, with one absent. Mr. Phelan noted this item is on the consent agenda on Tuesday night, so if anyone would like to make public comm REVISIONS FOR COUNCIL CONSIDERATION - 2021-03-16 -1- RESOLUTION 2021-031 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AND ADOPTING THE OUR CLIMATE FUTURE PLAN WHEREAS, the City of Fort Collins has an over twenty-year history of planning and action to achieve Council adopted community-wide goals for climate, energy and waste; and WHEREAS, the City began evaluating the risk of climate change impacts in 2008 as a participant in the Climate Resilient Community pilot program convened by ICLEI – Local Governments for Sustainability; and WHEREAS, on December 2, 2008, City Council adopted Resolution 2008-122 approving and adopting the 2008 Fort Collins Climate Action Plan; and WHEREAS, on December 17, 2013, City Council adopted Resolution 2013-111 establishing a waste diversion policy to implement the “Road to Zero Waste” plan; and WHEREAS, on March 3, 2015, City Council adopted Resolution 2015-030 establishing updated goals to reduce community-wide greenhouse gas emissions to 20% below 2005 levels by 2020, reduce 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 and adopted an Updated Energy Policy; and WHEREAS, the Our Climate Future Plan, a copy of which is attached hereto as Exhibit “A” and incorporated herein is the combined and comprehensive update to the Climate Action Plan, Energy Policy, and Road to Zero Waste Plan; and WHEREAS, the goal of the planning process for the Our Climate Future Plan has been to seek equitable solutions with a defined intent to center the Plan in equity and lead with race; and WHEREAS, the Our Climate Future Plan articulates climate, energy and waste reduction goals to be addressed simultaneously in order to improve community equity and resilience outcomes, articulate a commitment to mitigating climate change with a systems-based approach, center solutions in people and community priorities, and implement an evergreen review cycle; and WHEREAS, the Our Climate Future Plan does not commit any funding for implementation or select the methods of or technologies for achieving those goals; rather, consideration of future City actions to implement the goals will follow standard budget and policy processes and include evaluations of each initiatives' benefits and costs to the City and the community; and WHEREAS, City Council has considered the Our Climate Future Plan at three Work Sessions on July 23, 2019, November 24, 2020, and most recently on February 9, 2021; and REVISIONS FOR COUNCIL CONSIDERATION - 2021-03-16 -2- WHEREAS, the Our Climate Future Plan has also been considered and recommended by the Energy Board and Natural Resources Advisory Board; and WHEREAS, City Council has determined that the Our Climate Future Plan is in the best interest of the residents of the City of Fort Collins and is necessary to protect their health, safety, and welfare. 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 City Council hereby approves and adopts the Our Climate Future Plan attached hereto and incorporated herein by this reference, with the following modifications: (a) That Our Climate Future Plan shall be modified to reflect City Council’s support for ambitious efforts to draw down all sources of emissions, including from energy, waste, transportation, water, and industrial process and product use (IPPU) emissions and especially those from major industrial sources, recognizing that IPPU emissions are a source of potent and long-lived greenhouse gas; and (b) That the City Council directs the City Manager, beginning in 2022 and continuing at two- year intervals, to use the review and calibration cycles set forth in the Our Climate Future Plan to consider recommending changes to the waste, energy, and climate goals established for 2030 and 2050 as needed so that those goals remain in alignment with changes to market conditions, community priorities, developments in technology and ongoing updates to scientific findings regarding climate change. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 16th day of March, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ City Clerk