HomeMy WebLinkAboutMemo - Mail Packet - 09/10/2024 - Memorandum from Brian Tholl re: Building Performance StandardsUtilities
222 Laporte Ave.
PO Box 580 Fort Collins, CO 80522
970-212-2900
utilities@fcgov.com
CC: Jacob Castillo, Chief Sustainability Officer; Gretchen Stanford, Utilities Deputy Director;
Katherine Bailey, Energy Services Project Manager
MEMORANDUM
Date: September 3, 2024
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Travis Storin, Chief Financial Officer
From: Brian Tholl, Energy Services Manager
Subject: Building Performance Standards
BOTTOM LINE
This memo provides additional information on topics identified by Councilmembers during the
June 11, 2024 Work Session, including:
1. City of Fort Collins buildings’ compliance with proposed Building Performance Standards
(BPS) efficiency targets
2. Incremental costs associated with BPS program administration
3. Summary of feedback from the Climate Equity Committee
4. Outline of compliance pathways and support for building owners
Through 2030, staff forecast BPS program implementation, including staffing, technical services
and other resources, will require an additional estimated $4.2 million to implement and achieve
program outcomes. Additionally, for those City-owned buildings not already compliant with
proposed efficiency targets, staff forecast approximately $5.3 million of additional capital funds
will be needed to reach 2030 and 2035 efficiency targets.
BACKGROUND
On April 23, 2024, staff discussed proposed BPS policy recommendations, which would require
commercial and multi-family buildings 5,000 square feet and larger to meet specific efficiency
targets or comply using an alternate compliance pathway. Recommendations exclude buildings
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50,000 square feet and larger that comply with State of Colorado BPS. Councilmembers
showed general support and requested further information on implementation and building
owner support.
At the June 11, 2024 Work Session, staff recommendations focused on the importance of
sufficient support to achieve efficiency targets, including significant building owner education.
City Buildings’ Compliance Status:
Review and evaluation of current City properties confirms that approximately 55% of City-owned
buildings are currently in compliance with the proposed BPS efficiency targets. The table below
represents a summary of buildings covered by proposed efficiency targets, while Attachment 1
provides further detail. City buildings may not fully reflect the buildings in our community (both
property types and management may differ), however, the City’s building portfolio is closer to
reaching proposed efficiency targets than community buildings as a whole.
Table 1: City Building Summary
BPS
requirement
Total
buildings
Number in
compliance
Percentage
in
compliance
Built area
(ft²)
Estimated
cost to
comply
Cost
per built
area
($/ft²)
City-owned
buildings covered
by proposed
efficiency targets
38* 21 55% 603,080 $5,285,200 $8.76
*Some buildings may no longer be owned by the City by target deadlines
The estimated cost to reach compliance for City-owned buildings that do not already comply
with proposed targets is $5,285,200. This estimate includes the full replacement cost of
equipment that is reaching the end of life as well as any other necessary updates within those
buildings. Additional investments will be required for planned and necessary improvements in
other buildings, including those covered by the existing state BPS.
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Staff have included offers in the Budgeting for Outcomes process to align with the City asset
management plan. City staff are currently seeking a third-party consultant to support and review
upcoming projects and align them with local, state and federal funding sources, including both
tax credits and other up front funding resources.
Before efficiency targets were evaluated and included in the proposed BPS policy, Municipal
Code §12-203(c) outlined standard efficiency reductions in City buildings. Councilmembers
provided feedback that City-owned buildings should be subject to the same requirements as the
rest of the community. Staff suggest modifying the existing municipal code should the proposed
BPS be adopted.
Implementation Cost Evaluation:
Efficiency incentives, technical services and other resources to implement the proposed BPS
are available using Utilities enterprise funds. Specifically, 2025/2026 ongoing Offers 15.1 –
Utilities: Light & Power - Wholesale Purchased Power and 7.2 Utilities: Light & Power - Energy
Services fund approximately $3.4 million annually for commercial building energy efficiency
programming.
Evaluation of the likely expenses for administration of the proposed BPS policy confirms that a
successful policy implementation for all community buildings will require an additional average
of $870,000 annually, with expected variation from year to year. The fluctuation is due to
projected increased building owner engagement prior to target years, technical services
deployment and efficiency incentive payments throughout the implementation period. A full
breakdown of the estimated implementation budget and existing planned resources is included
as Attachment 2. Staff are actively considering options for funding of the project, including
potential use of 2050 tax funds beginning during the 2026 budget revision process. 2050 tax
reserve dollars are planned to be in excess of the incremental amount required and may
represent an opportunity for community funding with Council support.
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Included in the estimated implementation budget is an early adopter bonus incentive to
encourage early awareness and engagement, as well as additional incentives for under-
resourced buildings (those with less access to resources necessary to comply). In addition to
one full-time City employee and one half-time employee currently budgeted that will support
program implementation, Staff propose an additional half-time employee, along with additional
technical and vendor support for community building owners.
Staff continue to evaluate funding opportunities, including grants, partnerships, federal
opportunities and more to maximize community resources. An example of funding and tax credit
opportunities is available in the Cost Benefit Analysis submitted with the Council Work Session
on April 23, 2024. Staff plan ongoing annual evaluations of supporting resources should the
policy be adopted, including an in depth analysis of resources and engagement ahead of the
2027 interim target.
Climate Equity Committee feedback:
The Climate Equity Committee (CEC) formed in 2023 as a resource to help guide projects and
programs, as they are being developed or implemented, toward more equitable processes and
outcomes.
The CEC had an initial meeting with BPS program staff in January 2024 to review policy
recommendations and potential equity impacts. Key areas of discussion included outlining how
the CEC can support and inform equity throughout BPS implementation.
On June 24, 2024, BPS program staff met with the CEC to discuss ongoing work defining and
engaging with under-resourced buildings, and a subsequent meeting provided additional space
for questions. Feedback included:
Acknowledge the need to prioritize occupants and tenants of under-resourced buildings
and affordable housing
Tenant challenges: high utility bills, poor communication with landlords, fear of retaliation
if they share challenges
Reciprocity in engagement: be clear about what we offer the community
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Consider collaboration with community consultants
Seek community representatives that are not likely to suffer from engagement fatigue
Acknowledge that embedding long term engagement strategies into the implementation
approach will be critical
The Climate Equity Committee and BPS program staff plan further upcoming meetings to
continue to discuss actionable steps supporting equity and engagement.
Compliance Pathways and Support:
Best practice documents and Community Contributors encourage simplicity in BPS program
design to the greatest degree feasible, while also emphasizing the importance of flexibility.
Compliance pathways outlined below are designed to balance these imperatives. Staff welcome
feedback on both proposed compliance pathways and support for under-resourced buildings.
Compliance pathways:
BPS structure and metrics vary across jurisdictions with existing policies. After deliberating, the
Task Force recommended local BPS compliance pathways focus on meeting efficiency targets.
This approach is supported by other Community Contributors as well for the following reasons:
Efficiency targets allow maximum flexibility, and account for building owners’
preferences (building owners may have their own sustainability goals or planned
upgrades that align with efficiency targets).
Efficiency targets provide a clear forecast of achievable savings.
When paired with appropriate alternate pathways (or ‘safety nets’) efficiency targets
account for the wide variety of functions and usage in buildings.
Efficiency targets reward owners of very efficient buildings.
Efficiency targets are complex, in the sense that many paths forward are possible. However, our
Community Contributors believe that they ensure flexibility, cater to variable building uses, and
represent the best approach for our community.
Deadlines associated with efficiency targets and possible citations follow the timeline in the
table 2.
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Table 2. BPS Targets and Penalty timeline
2027 2028 2030 2031
Interim Target based
on 2027 whole year
data
Citations issued for
missed targets
Target based on 2030
whole year data
Citations issued for
missed target
Alternate pathways:
Alternate pathways provide a ‘safety net’ for buildings that may struggle to reach proposed
efficiency targets. Our Community Contributors stressed the need for maximum flexibility, which
includes alternate pathways when appropriate.
Staff propose the following alternate pathways be included in the local BPS:
Waivers: Exclude certain buildings from requirements (e.g., buildings that have
demolition permits or buildings in financial distress).
Timeline Adjustments: Provide more time to comply when needed (e.g., due to supply
chain disruption). Staff will use consistent criteria to determine eligibility for individual
buildings.
Target Adjustments: Provide alternate efficiency targets when warranted (e.g., historic
buildings may not be able to make the changes needed to meet targets). Staff will use
consistent criteria to determine eligibility for individual buildings.
Caps: Limit the maximum reduction any building would need to make. Find more details
in Community Contributor Recommendations, Work Session Materials April 23, 2024.
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Renewables: Provide credits for buildings with onsite renewables. Find more details in
Community Contributor Recommendations, Work Session Materials April 23, 2024.
Additional support for under-resourced buildings:
Best practice and Community Contributor recommendations support providing additional
resources to under-resourced buildings. Ongoing work throughout 2024 seeks to define and
identify these buildings, and thereafter engage with building representatives (facility managers,
landlords, owners) and occupants to determine their true barriers to increased efficiency.
Community Contributors with subject matter expertise have shared that under-resourced
building owners are likely to benefit from enhanced technical, financial and project management
support, along with customized communication and engagement.
Staff are planning advanced technical assistance, higher incentives, and enhanced
communication and engagement strategies that ensure building owners understand available
resources and how to access them (see Implementation Guide, June 11, 2024 Council Work
Session materials).
Staff anticipate opportunities to learn from impacted parties, especially building owners,
throughout early implementation. That input can impact how we communicate program
information and the potential for implementation process improvements.
NEXT STEPS
Staff continue to partner with the community to develop and deploy resources that support
building owners throughout implementation, acknowledging significant direct support is
foundational to a successful policy. Staff are further engaging the community around program
data and policy specifics, working toward a broader understanding of complex
recommendations across the community. Targeted group meetings with building
representatives to refine technical resources along with broader community meetings to openly
share recommendations and supporting data are under development as Staff continue to define
resources and work to share information and build trust across a wider audience.
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Staff request input from Councilmembers on the proposed policy framework, including proposed
timeline, covered building types and sizes, targets, along with proposed the implementation
plan. Staff would be happy to discuss any feedback or proposed changes in an upcoming work
session, and to continue to share details on ongoing engagement as the policy development
progresses.
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Attachment 1: City building 2023 energy use intensity (EUI) status to 2030 Targets
Local BPS Covered City-Owned Property
Name
Built Area (ft²)2023 EUI
(kBtu/ft²)
2030 EUI Target
(kBtu/ft²)
Meet Proposed BPS
Target
117 N Mason 15,500 41.1 56.4 X
200 West Mountain 11,540 68.0 56.4
212-218 W Mountain 6,225 70.2 71.1 X
214 N Howes 6,917 81.7 69.4
222 Laporte Avenue 36,417 28.2 56.4 X
281 North College 37,603 49.7 56.4 X
Car Barn 15,000 17.8 35.6 X
Carnegie Museum 12,853 65.1 65.8 X
City Hall 31,553 119.4 89.6
Club Tico 12,260 30.5 61.4 X
Collindale Clubhouse 14,660 223.3 219.3
East Park Shop 6,700 32.1 35.6 X
Fleet Services 23,200 58.9 56.0
Fleet Services Annex 11,637 54.7 52.1
Foothills Activity Center 24,445 38.6 61.4 X
Fossil Creek Park Shop 6,550 104.0 110.1 X
Gardens on Spring Creek 9,740 108.4 99.5
Hoffman Mill Vehicle Storage 8,546 87.5 84.4
Hoffman Mill Warehouse 6,471 14.7 35.6 X
Indoor Shooting Range 7,500 113.8 96.7
Loomis Warehouse 20,244 34.9 35.6 X
Mulberry Pool 25,000 290.9 218.2
Museum of Discovery 46,928 41.2 56.4 X
Nix Farm Maintenance Facility 7,552 58.8 50.0
Nix Farm Vehicle Storage 5,000 70.5 59.9
North Transit Center 6,013 99.4 84.5
North-Side Aztlan Center 49,800 41.3 111.5 X
Operation Services 26,564 32.0 56.4 X
Parks Shop 21,075 38.0 43.5 X
Ricker Brothers Warehouse 14,160 59.4 46.6
Southridge Golf Clubhouse 5,000 211.4 179.7
Spring Canyon Park Shop 5,500 105.8 89.9
Traffic Ops 9,500 72.0 67.8
Utilities Vehicle Storage Bldg E 13,475 64.2 109.4 X
Utilities Vehicle Storage Bldg F 10,000 24.3 109.4 X
Utilities Water Meter Shop Building D 10,000 57.6 109.4 X
Utilities Water Vehicle Storage 15,252 46.8 109.4 X
Utility Vehicle Storage Building C 6,700 61.4 109.4 X
This list includes buildings that will not be in the City portfolio by target deadlines due to anticipated sale, demo, other
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Setup /
Upfront
2025 2026 2027 2028 2029 2030 Totals Notes
City Budget - Administration $180,000 $327,660 $341,506 $355,964 $371,059 $386,821 $403,280 $2,186,290
Staff $85,000 $288,660 $301,056 $313,991 $327,488 $341,571 $356,267 $2,014,034 1.5 FTE Existing, 0.5 FTE New - Efficiency Navigator
Resources -software $95,000 $39,000 $40,450 $41,973 $43,571 $45,250 $47,012 $352,255 Building Hub & technology integration
City Budget - Services and Incentives $2,458,832 $4,432,704 $3,127,246 $4,700,707 $3,211,281 $4,104,316 $22,035,086
Technical Services $0 $198,000 $1,045,800 $930,000 $1,435,500 $1,069,500 $1,342,500 $6,021,300 75% covered buildings pursue technical assessment
Rebates and Incentives - Base $0 $1,336,062 $2,004,671 $1,847,626 $2,744,753 $1,800,278 $2,319,943 $12,053,333 10% incentive total project cost
Rebates and Incentives - Additional for Early Adoption $0 $668,031 $1,002,335 $0 $0 $0 $0 $1,670,367 50% rebate bonus for early proejcts in 25/26
Rebates and Incentives - Additional for Under Resourced $0 $256,739 $379,898 $349,620 $520,454 $341,503 $441,873 $2,290,087 200% rebate bonus for Under Resourced Buildings
City Budget Program Total $2,786,492 $4,774,211 $3,483,209 $5,071,766 $3,598,102 $4,507,596 $24,221,376
Forecasted budget available $3,451,423 $3,445,011 $3,430,588 $3,417,200 $3,405,353 $3,383,072 $23,743,727
Personnel & administrative $240,343 $261,731 $273,138 $285,047 $297,482 $310,467 $1,668,209 From Offer 7.2 - Energy Services Ongoing Offer
EW Business Techncial assistance budget for Fort Collins $575,520 $586,560 $598,560 $610,560 $622,560 $622,560 $4,191,840 From Offer 15.1 - Wholesale Purchased Power
EW Business Incentives budget for Fort Collins $1,990,560 $1,950,720 $1,911,840 $1,873,440 $1,836,000 $1,799,520 $13,352,640 From Offer 15.1 - Wholesale Purchased Power
CFC Business Incentives Budget $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $3,500,000 From Offer 7.2 - Energy Services Ongoing Offer
Marketing & awareness $20,000 $21,000 $22,050 $23,153 $24,310 $25,526 $156,038 From Offer 7.2 - Energy Services Ongoing Offer
Software and Tools $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $875,000 From Offer 7.2 - Energy Services Ongoing Offer
Difference $664,931 -$1,329,199 -$52,621 -$1,654,566 -$192,749 -$1,124,523 -$3,688,729
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2025 2026 2027 2028 2029 2030
BPS Implementation Budget
Budget Available Estimated Budget
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