HomeMy WebLinkAboutMemo - Mail Packet - 01/28/2025 - Memorandum from Brian Tholl and Katherine Bailey re January 14, 2025, Building Performance Standards (BPS) Policy DiscussionFort Collins Utilities – Light and Power
222 Laporte Ave
PO Box 580, Fort Collins, CO 80522
970-212-2900
Utilities@fcgov.com
CC: Tyler Marr, Deputy City Manager 1
WORK SESSION MEMORANDUM
Date: January 21, 2025
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Jacob Castillo, Chief Sustainability Officer
From: Brian Tholl, Energy Services Manager
Katherine Bailey, Energy Services Program Manager
Subject: January 14, 2025 Building Performance Standards (BPS) Policy Discussion
BOTTOM LINE
The purpose of this memo is to document a summary of discussions during the January 14,
2025 Work Session. All Councilmembers except Councilmember Ohlson were present and
none were remotely attending. The proposed Building Performance Standards (BPS) policy
supports the adopted Council priority to reduce climate pollution and air pollution, as well as the
Our Climate Future goal to reduce carbon emissions.
DISCUSSION SUMMARY
Work session discussion was centered on policy alignment and possible tensions related to
council priorities, especially regarding affordable housing, climate and economy.
Councilmembers asked for more information on specific buildings’ likely experiences. Questions
and subsequent discussion included the following content:
• Councilmembers showed support for a 6-month pilot effort related to BPS implementation.
This pilot is a voluntary opportunity for a limited number of building owners to complete the
technical assessment and support to determine potential pathways to policy compliance
• Staff understand the outcomes of a proposed pilot would include:
o Test and/or validate staff assumptions used in policy development through engagement
with local building owners focused on building upgrades and associated costs
o Test and/or validate process steps and resources required to implement a successful
policy
o Identify tensions and opportunities associated with economic impact and provide
information regarding implementation feasibility
• Considering staff resources and timeline, staff can commit to:
o Develop criteria and methods for enrollment of up to 5 buildings of varying building types
and energy use
o Conduct onsite analysis of opportunities and incorporate building owner insights
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o Conduct customer journey map exercise to gain understanding of customer pain points
to refine the implementation process
• The pilot will examine unique properties, complementing broader community analyses. Staff
anticipate the small sample size is unlikely to represent average findings, but will outline
potential compliance pathways for individual buildings, providing insights to assist in
continued policy development and implementation
• Councilmembers expressed interest in hearing pilot findings and considering policy during
this council period, considering environmental goals and impacts
• Policy implementation focused questions included:
o Vendor support vs internal staff resources
Importance of providing continuous customer service and guidance for covered
buildings to minimize disruption
o Importance of safety nets and/or waivers for unique buildings such as historic properties
to avoid conflicting regulations or policies
o Financial resources including direct City support available to a broad spectrum of
businesses and owners
Support for incentives for early adopters
Potential additional incentives contingent upon rent increase limits in affordable
housing
Consideration of additional resources for specific under-resourced market segments,
including multi-family
o Municipal building costs
Municipal buildings have a higher cost per square foot as upgrades encompass
leading by example in attaining 2050 goals (rather than the proposed community
2030 goals)
• General clarity and common understanding of the policy, including relationship between
building targets and maximum reduction caps and policy impacts on new construction
o Clarity around maximum reduction caps. The proposed Fort Collins policy recommends
a 15% maximum cap for 5,000 to 10,000 sq ft buildings and a 25% maximum cap for
10,000 sq ft buildings and larger. This percentage is the maximum any building would
need to reduce their energy use regardless of how high above the absolute target their
energy use may be
o Distinction between State and locally covered buildings and requirements
• Declining incentive program participation and methods of increasing efficiency through
regulatory and economic methods
NEXT STEPS
• Provide a follow-up memo outlining timeline and scope for technical pilot work
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• Council requested staff return in six months to discuss initial findings
• Attached is the executive summary of work identifying local under-resourced buildings and
their barriers to efficiency
o Staff are exploring best means to incorporate findings
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J uly throug h De cem be r 20 24
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Ackn owle d g e m e n ts
We would like to e xp ress g ra titud e a nd recog nize the following individ ua ls who sup p orted
this e ffort. Ple a se note e ng a g em e nt p a rticipa nts we re p rom ise d a nonym ity.
• Ka the rine Ba iley
• Pe te Ie ngo
• Ma x Dug g a n
• Ashley Ka ilburn
• Da vid Suckling
• Gra ce Sulliva n
• Ally Ma rk
• Bria nna Johnson
• Nick Russe ll
• Na ta lia Ca rm inelli
• She lby d e Jong h
• Be re nice El Gha ra m ti
• Jose Luis Ra m os
The City of Fort Collins Utilitie s (City/ Utilitie s) worke d with Lotus Eng ine e ring a nd
Susta ina bility a nd Mona rca Group (the p roje ct tea m ), to id e ntify com m e rcia l a nd
m ultifa m ily b uild ing s tha t ha ve le sse r a ccess to re source s in Fort Collins. The p roje ct sc op e
wa s twofold : to de fine a nd ide ntify the City’s und e r-re source d b uild ing s (URBs) using d a ta
a nd to e ng a g e sta kehold e rs a ssocia te d with com m e rcia l a nd m ultifa m ily URBs.
Eng a g e m ent cente red a round thre e m a in g oa ls:
1) Ve t a nd re fine the URB d e finition.
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2) Und e rsta nd the com m unity’s build ing -re la te d ne e d s.
3) Se e k re com m e nd a tions to lowe r b a rrie rs to e ne rg y e fficie ncy.
The p roje ct sp a nne d July 2024 throug h Dece m b e r 2024 a nd eng a g e d ove r 200
sta ke hold e rs a cross five b roa dly d e fine d sta ke hold e r g roup s: m ultifa m ily te na nts a nd
b uilding owne rs, com m e rcia l te na nts a nd building owne rs, a nd third -p a rty e xpe rts, which
includ e s c ontra ctors, othe r City d e p a rtm ents, nonp rofits, etc. The inform a tion ob ta ine d in
this p roce ss m a y re sult in e sta b lishing a lte rna te e ng a g em ent stra te g ies for b uild ing owne rs
a nd te na nts or cha nge s to City p rog ra m s a nd offe ring s such a s te chnica l a ssista nce .
Lotus de velop e d a qua ntita tive de finition of URBs a nd a n e a sily rep lica ble a nd up d a te a b le
tool for id entifying URBs in conjunction with e ng a g e m ent a nd outre a ch. For the full crite ria ,
scoring structure , tie ring m e cha nism , a nd de ve lop m ent p roce ss se e the URB Crite ria Mem o
(Ap p e ndix A). Ea ch build ing is score d a g a inst the crite ria , a nd b uild ing s with two p oints or
m ore a re cla ssifie d a s URBs. Of the 2,920 b uild ing s in the Fort Collins b uild ing d a ta set, 897
we re id e ntifie d a s URBs. Ta b le ES1 give s a n ove rvie w of the crite ria a nd the ir we ighting s.
Ta b le ES1. URB Crite ria
Crite rion C Hum a n se rvice s p rovid e r (he a lth se rvice s, food b a nk, etc .). 1
Crite rion F Ene rg y cost burd e n (>120% of m e d ia n cost for sim ila r b uilding s). 1
URBs m a y be a ssig ned a d d itiona l p oints b a se d on the e ne rgy sa ving s ne e d e d to a chie ve
the p ote ntia l Building Pe rform a nce Sta nd a rd (BPS) p rog ra m 2030 e ne rg y use inte nsity (EUI)
ta rg e ts. Tota l crite ria a nd EUI re d uction p oint va lue s a re then used to pla ce the build ing into
one of thre e URB t ie rs. Tie r 1 id entifie s URBs tha t m e et the m ost criteria a nd m a y ne e d
sig nifica nt e ne rg y sa ving s to a chieve the pote ntia l BPS EUI ta rg ets. Ta b le ES2 shows the
sha re of URBs tha t we re cla ssifie d into e a ch t ie r .
Ta b le ES2. URBs b y Tier
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Tie r Cou n t of URBs
1 81
2 281
The p roje ct te a m e nga g e d ove r 200 m ultifa m ily tena nts a nd b uild ing owne rs, com m e rcia l
te na nts a nd b uild ing owne rs, a nd third -p a rty e xp e rts. The find ings a re org a nize d into a
tim e line of b a rrie rs a long the b uilding life cycle a nd b y p riority p er sta ke hold e r g roup .
Eng a g e m ent with the p roje ct’s m a jor sta ke hold e r g roup s re ve a le d b a rrie rs to e ne rgy
e fficiency a t a ll sta ges of the b uilding life cycle (Fig ure ES1 be low).
Fig ure ES1. The b uild ing life cycle b e g ins with the curre nt e conom ic circum sta nce s, or
m a rke t force s, a nd e nd s with the re turn on inve stm e nt. 1,2
The top four b a rrie rs to e ne rg y e fficie ncy rep orte d b y the Fort Collins com m unity a re :
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1) Fina ncia l cha lle ng e s in p a ying for up g ra d e s.
2) La ck of ca p a city in re sp onsible sta ff.
3) Ma rke t force s.
4) La ck of knowle d g e of e ne rg y e fficie ncy up gra d e s a nd b e ne fits.
Sig nifica nt the m es rela te d to the se b a rrie rs includ e:
∉ La ck of a wa re ne ss of e xisting a ssista nce p rog ra m s.
∉ Und e rp e rform ing or incorre ctly insta lle d e quip m ent.
∉ (Pe rce p tion of) la ck of re turn on inve stm ent b oth short -te rm a nd long -te rm .
∉ Difficulty in re a ching de cision m a ke rs.
∉ Difficulty in finding q ua lifie d a nd a fford a b le contra ctors.
∉ Misa lig nm e nt of incentive s a nd resp onsib ilitie s b etwe e n tena nts a nd owne rs.
Ofte n, these them e s ca n b e tra ce d b a ck to the top four b a rrie rs. For e xa m p le , the la ck of
q ua lifie d a nd a fford a b le contra ctors rela tes to m a rke t force s, a s m a ny b uilding owne rs
e xp re sse d frustra tion a t the hig h costs of la b or. Fig ure ES2 b re a ks out the m ost significa nt
b a rrie rs for e a ch of the five key sta ke hold e r g roup s.
Fig ure ES2. The top p riority b a rrie rs for e a ch m a jor sta ke hold e r g roup .
: a nd . Liste ning se ssions
we re org a nize d b y Mona rca Group a s a re sp e cte d com m unity lia ison.
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Conclu sion : Highly inte re ste d in e ne rg y e fficie ncy im p rovem e nts , b ut c a ught b etwe e n
com p eting p rioritie s of p rop e rty owne rs, high cost of living , a nd la ck of know -how on
im ple m enting e ne rgy e fficiency.
: , org a nize d b y Mona rca Group a s a
re sp e cte d com m unity lia ison.
: Highly im p a cte d b y e conom ic circum sta nce s a nd hig he r p rice s.
: .
: Com ple x la nd sca pe of costs, which a re rising or hig he r tha n be fore .
The p roje ct te a m colle cte d ide a s for wa ys to help sta ke hold e rs ove rcom e the se ba rrie rs.
Re com m end a tions a re ca te g orize d b y id e a s for , of e xisting
p rog ra m s, a nd op portunities to the m . More d eta ils on the se re com m e nd a tions
a re include d in the full re p ort.
∉ Eq uip m e nt re p la cem ent p rog ra m .
∉ Aud it p rog ra m (offe r a m ne sty for na tura lly occur r ing low -incom e housing).
∉ List of q ua lifie d contra ctors (ind ica ting willing ne ss to work with nonp rofits).
∉ Outre a ch with truste d com m unity lia isons who ca n funnel p a rticipa nts towa rd s
p rog ra m s, such a s contra ctors.
∉ De velop e r a nd build e r technica l sup p ort for inte g ra ting e ne rg y e fficie ncy in the
d e sig n p ha se .
∉ Focus e xisting p rog ra m s a nd e duca tion ca m p a ig ns on re a ching a nd sup porting
und e r -re source d com m unitie s a nd ke y sta ke hold e rs.
∉ Dire ct Insta ll p rog ra m .
∉ Prom otion of Ene rgy Outre a ch Colora d o se rvice s a nd p rog ra m s.
∉ Tra ining a nd e duca tion re source s for fa cilitie s m a na g e rs/ build ing system s
op e ra tors, tena nts, a nd contra ctors.
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∉ Exp a nd ene rg y a dvisers to includ e b usine ss na vig a tors to he lp b usine sse s m a na g e
e ne rg y e fficie ncy p roje cts.
∉ He a lthy Workp la ce p rog ra m sim ila r to He a lthy Hom e s p rog ra m .
∉ Te na nt -build ing owner workshop s to b uild colla bora tion.
∉ Building a utom a tion system consulta tions a nd tra ining for m ultifa m ily a nd
com m e rcia l b uild ing s.
∉ Incentives for contra ctors to a cce p t sm a lle r job s for URBs.
∉ Sp e cia lize d a ssista nce for a fford a ble housing a nd com m unity hub s.
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