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HomeMy WebLinkAboutResponse to Constituent Letter - Mail Packet - 05/28/2024 - Letter from Mayor Arndt to Energy Board re: Support for 2024 Appropriation Recommendations for the 2023 Ballot Initiative Mayor City Hall 300 LaPorte Ave. PO Box 580 Fort Collins, CO 80522 970.416.2154 970.224.6107 - fax fcgov.com May 23, 2024 Energy Board c/o Christie Fredrickson, Staff Liaison PO Box 580 Fort Collins, CO 80522 Dear Brian Smith and Board Members: On behalf of City Council, thank you for providing us with the memorandum dated May 22, 2024 regarding Board support for 2024 climate tax appropriation recommendations for the 2023 ballot initiative. Thank you for outlining your support for the “Climate Fund Criteria” and we acknowledge that the Board recommends establishing an annual dollar per MTCO2e and other targets that decrease over time. Thank you for the expertise and perspectives that you bring to the Board and share with City Council. Best Regards, Jeni Arndt Mayor /sek cc: City Council Members Kelly DiMartino, City Manager Utilities – Energy Board 700 Wood St. PO Box 580 Fort Collins, CO 80522 970.221.6702 970.416.2208 - fax fcgov.com M E M O R A N D U M DATE: May 22, 2024 TO: Mayor Arndt and City Councilmembers FROM: Fort Collins Energy Board RE: Support for 2024 Appropriation Recommendations for the 2023 Ballot Initiative At the May 9, 2024, Energy Board meeting, Fort Collins Utilities staff presented the 2024 climate tax appropriation recommendations. In accordance with the Energy Board’s duties and responsibilities 1, 2, and 6, the following advice is provided to Council regarding the staff recommendations: • The Energy Board supports the “Climate Fund Criteria” established by staff to identify and recommend projects. The criteria help staff focus on identifying projects that are di- rectly aligned with Our Climate Future, complement existing projects, provide immediate community benefits, and the benefits can be easily communicated to taxpayers. • The Energy Board supports the projects recommended by staff using the “Climate Fund Criteria.” Most projects are “shovel ready” and will provide immediate benefits towards the carbon reduction goals. “Convenient Transportation Choices" may not provide imme- diate carbon emission reductions but lay the foundations necessary to deliver important future benefits towards the goals outlined in the Ballot initiative. • It’s the Energy Board’s understanding that the recommended projects will deliver carbon reduction at a $68 to $103 per Metric Tons of carbon dioxide equivalent (MTCO2e). This is concerning given the Utility’s 2023 Energy Services portfolio of programs achieves an average of $31 per MTCO2e, with individual projects and effort ranging from $11 per MTCO2e to $146 per MTCO2e. However, the Energy Board acknowledges that the av- erage dollar per MTCO2e is typically higher with new projects and expects the average dollar per MTCO2e should come down over time as projects mature and “foundational” projects start delivering results. Given this, the Energy Board recommends the Council request staff to establish annual dollar per MTCO2e, and other key cost-effectiveness impact targets, that decrease over time with a final goal to be achieved by 2050. Overall, it is the Energy Board’s observations that the projects seem reasonable and a prudent use of taxpayer funds to achieve the goals as outlined in the Ballot initiative of 2023. The Energy Board suggests the Council approve projects as proposed. Thank you for the opportunity to review and comment. Respectfully submitted on behalf of the Energy Board, __________________________ Brian P. Smith Energy Board cc: Brian Tholl, Senior Manager, Mechanical Engineer Michael Authier, Mechanical Engineer III Christie Fredrickson, Administrative Assistant, Energy Board Support