HomeMy WebLinkAboutMemo - Mail Packet - 05/27/2025 - Memorandum from Honore Depew re May 13, 2025 Work Session Summary – Council Priority: Our Climate FutureEnvironmental Services Department
222 Laporte Ave.
PO Box 580, Fort Collins, CO 80522
CC: Brian Tholl, Energy Services Director
WORK SESSION MEMORANDUM
Date: May 20, 2025
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
Jacob Castillo, Chief Sustainability Officer
From: Honore Depew, Sr. Manager, Environmental Sustainability
Subject: May 13, 2025 Work Session Summary – Council Priority: Our Climate Future
BOTTOM LINE
The purpose of this memo is to document the summary of discussions during the May 13, 2025
Work Session, which provided an update on the Council Priority to Reduce Climate Pollution
and Air Pollution Through Best Practices, Emphasizing Electrification. All Councilmembers were
present and in person.
DISCUSSION SUMMARY
Councilmembers offered feedback and asked questions, indicating that the work aligned with
Council expectations and that advancing climate solutions to meet adopted goals is critical.
Some general feedback and discussion comments included:
o Appreciation for the synthesis of complex work with many interdependent variables
including outside changes and challenges occurring
o Support for continued work to support electrification of buildings, vehicles, and small
engine equipment, including leading by example as an organization
o Acknowledgement that the City is getting more sophisticated in measures and areas of
focus
o Noted tensions with prior existing policies and emerging policies and priorities
o Staff taking adopted goals seriously and working with community to achieve them - and
recognizing the community may not meet some of the near-term targets
o Noted this requires realistic thinking, related knowledge, and collaboration between
departments
NEXT STEPS
Staff will continue supporting electrification efforts for the City organization and the community,
while partnering with PRPA to achieve 100% renewable electricity for Fort Collins. Several key
Council Advisory Boards are being engaged as strategic thought partners for this work. A Council
Work Session will be scheduled in Q4 to review final 2025 outcomes from this Council Priority
and to discuss the OCF Strategic Funding Plan.
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FOLLOW-UP ITEMS
Staff was asked to provide further detail on several specific items:
Regional Air Quality Strategies
Questions were posed about regional air quality planning and coordination, specifically related
to a voluntary downgrade in ozone non-attainment status, and local influence on regional oil and
gas related emissions. Specifically:
• The Regional Air Quality Council (RAQC) is the lead regional air quality planning
agency, developing strategies and shaping implementation plans targeting ozone
attainment. Locally, Commissioner Stephens serves on the RAQC board, and City staff
participate in committee discussions regarding control strategies and programs that can
be implemented locally (such as rebates for small engines and food truck generators).
More information on programs can be found at https://raqc.org/programs.
• In 2024, the State asked EPA to reclassify the Denver Metro/North Front Range ozone
nonattainment area from Moderate to Serious for the 2015 ozone standard, and more
recently has asked for an additional downgrade to Severe (area is already considered
Severe per a 2008 ozone standard). This was requested as updated modeling showed
the region was not going to meet ozone standards with emissions controls currently in
place or planned, effectively extending the timeline to evaluate and implement deeper
and more stringent control strategies.
• One of the main regional contributors to ozone are emissions from oil and gas
development. As Fort Collins no longer has active oil and gas wells, municipal influence
is indirect. Current focus is on supporting legislation and rulemakings that limit regional
emissions, and working to fully reclaim and restore the oil and gas well locations that
now sit idle within City limits.
• While Fort Collins is not currently offering a lawn and garden equipment electric
conversion rebate, since 2024 the State of Colorado has provided a direct-to-retail tax
credit statewide. So, Fort Collins residents and businesses can access a 30% discount
for making the switch by visiting a participating retailer, as listed by the CoPIRG
Foundation.
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Electric Vehicle Adoption/Conversion Data
Community Wide Electric Vehicle Adoption: There are currently 5,647 Electric Vehicles (Battery
Electric or Plug-in Hybrid) actively registered to residents and businesses in the City of Fort
Collins. This makes up 4.5% of light-duty vehicles in the city. State-wide adoption is 3.76%
City Fleet Electric Vehicle Adoption: Fleet electrification is a key component of the City’s efforts
to reduce organizational Greenhouse Gas emissions. 5.6% of the City’s fleet vehicles are either
Battery Electric Vehicles while a further 3.9% are Hybrid Vehicles . A further breakdown of
vehicles by Service Area is included below:
Electric Vehicles by Service Area
• 986 Total Vehicles, Including Police Patrol Vehicles
• 55 Battery Electric Vehicles, including 6 buses
• 38 Hybrid Vehicles
• 5 Additional Battery Electric Buses Expected Delivery: Early 2026
An assessment of the costs/benefits of leasing versus purchasing of EVs has not yet been
completed. If desired, staff can provide a further breakdown of fleet vehicles and type in a future
memo.
Key Climate Pollution Reductions in 2023
Councilmembers requested more detail on the changes in recent GHG emissions listed in the
Agenda Item Summary:
• Lower community electricity use (3% decrease in electricity consumption since 2022)
• This slight decrease in use is due to a combination of weather patterns and increased
efficiency. Generally, electricity use has remained flat the past several years despite
population growth due to increased efficiency.
• Increased local solar (36% increase in local electricity from 2022)
o This increase in local (rooftop) solar consumption is due to an increase in solar
generation capacity as well as an increase in that generation being consumed on
site instead of pushed out to the grid.
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• Decrease in blended electricity emissions factor (lower GHGs / MWh) due to a decrease
in coal at the utility scale
o The decrease in electricity produced by coal by Platte River Powe Authority was
offset by regional purchases, which have a lower emissions per MWh generated
due to largely being sourced from natural gas (methane).
• Lower industrial manufacture emissions (69% reduction in emissions from 2022)
o One business in Fort Collins meets the EPA’s Large Emitter threshold and
produces industrial process emissions (industrial process emissions are created
as a byproduct or used as an input to industrial processes). This business has
installed several abatement devices each year since 2016 to mitigate high global-
warming-potential gases such as sulfur hexafluoride and nitrogen trifluoride.
• Decreased materials going to landfill (13% decrease in tons of waste from 2021)
o In 2022 and 2023, landfilled material decreased significantly from the previous
three years; however, tonnage varies widely year to year due to weather events
(such as hailstorms that create roof damage), large construction and demolition
projects, diversion efforts, and data accuracy from haulers. In 2023, industrial
landfilled waste was about 13% lower than in 2022.
100% Renewable Electricity Goal
Councilmembers asked for more information on how Fort Collins can achieve its 100%
Renewable Electricity goal, in collaboration with Platte River Power Authority (Platte River). Fort
Collins electric utility customers currently receive about half of their electricity from renewable
sources, with Platte River’s Integrated Resource Plan (IRP) helping the community reach its
Council-adopted goal of 100% RE by 2030.
The Our Climate Future goal is defined as annual energy consumption, meaning that when the
community generates more renewable electricity than is consumed, we will have met our OCF-
defined goal. This is consistent with the adopted goals of other communities related to
renewable electricity and aligns with best practices in emissions accounting protocols.
In addition to the OCF goal, Platte River’s Resource Diversification Policy targets operational
achievement of 100% renewable electricity, meaning, all electricity generated by Platte River
would be from non-carbon resources.
Forecasts currently identify that our consumption-based OCF goal for renewable electricity can
be met by 2030, while Platte River will reach approximately 88% of its generation-based goal by
the end of 2030. (See attached electricity accounting one page information sheet for additional
details.) Staff will be reviewing more details with the Energy Board at an upcoming June work
session and will be providing additional information to Council later this summer.
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Large Methane User Fee
Councilmembers asked for context about why staff do not recommend advancing development
of a Large Methane User Fee policy (LMUF) at this juncture.
Since Our Climate Future was adopted in 2021, staff have been supporting City Council in actively
advancing specific policy approaches to help reduce building energy use and accelerate building
decarbonization in the community – prioritizing adoption of Building Performance Standards (for
existing buildings) and regularly updating the Building Energy Code (for new
buildings/renovations). Given these multiple regulatory policies already under development, a
plurality of Councilmembers have not expressed an intent to advance another emissions-
reduction policy in the near term.
Staff will continue exploring if and how a proposal for a Large Methane User Fee (LMUF)
complements the currently prioritized policies to determine impact and efficacy to ensure timing,
sequencing, and relationship to other potential policies would meet Council expectations.
Climate Emergency Language
City Council adopted a Resolution in 2019 declaring a Climate Emergency. Subsequent
consideration of directing staff to refer to the “climate crisis” led to discussion and research
resulting in the finding that the word “crisis” does not have a positive influence on behavior
change. Motivational OCF communication materials attempt to balance a sense of urgency with
a positive message for climate solutions that support a thriving community.
OCF Council Roadmap
Staff last presented the OCF Council roadmap in late 2023, and a link to that memo can be
found here. The Council roadmap was developed to sequence possible upcoming actions
Council can take to support OCF implementation. It also helps Councilmembers connect climate
impacts to other decisions and highlight the levers available to reach community goals. The
annual update provided to City Council in 2024 was focused on funding associated with the
20250 tax and did not include a roadmap update. However, there were not substantive additions
to the roadmap in 2024.
Staff will share an updated OCF road map / trail map and pathways to OCF goals (including
quantified strategies) in a Work Session later this year.
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Definition and Inclusion
As energy travels from multiple generation sources to multiple points of consumption, through interconnected transmission and
distribution systems, the specific sources consumed at these endpoints cannot be traced. Renewable certificates, issued for
renewable energy generation, provide the only accounting mechanism for determining if consumption comes from a renewable
source. These are commonly referred to as Renewable Energy Certificates (RECs), Renewable Energy Credits (RECs), or Energy
Attribute Certificates (EACs). One MWh of renewable generation equals one MWh of renewable certificate.
Renewable energy can be “unbundled” from its associated renewable certificates and sold separately. When this occurs, the
resulting unbundled energy can no longer be considered renewable. Fort Collins Utilities does not intend to purchase any unbundled
renewable certificates to achieve its 100% renewable energy goal in 2030, and does not consider any of the energy consumed in its
resource mix and emissions reporting as renewable unless the energy’s associated renewable certificates are owned.
This accounting concept becomes a bit more complicated in 2026, when Platte River and its Owner
Communities join the Southwest Power Pool (SPP) Regional Transmission Organization (RTO) West
expansion. At that point, SPP requires Platte River’s generation to be sold directly into SPP, and the
energy required to serve its Owner Communities to be separately purchased from SPP. The
accounting details of this SPP expansion are not yet finalized, though two potential scenarios are
likely possible, and both have the same result for Fort Collins Utilities.
Fort Collins Utilities’ current understanding is that owned renewable energy generation will be sold into SPP as just “generic” energy,
but Platte River will hold the energy’s associated renewable certificates. When this “generic” energy is then purchased back from SPP
to meet the Owner Communities’ needs, the Owner Communities will be able to consider the purchases renewable (up to what was
sold in). Essentially, Platte River will be selling its renewable energy generation into SPP, then buying it back, maintaining ownership of
the associated renewable certificates the whole way through.
Alternatively, SPP may decide to track renewable certificates, keeping them bundled with the renewable electricity generation. This
would allow SPP to pay a premium for the renewable energy generation sold in, but also charge a premium for renewable energy
bought out. In this scenario, Platte River’s renewable energy generation would be sold into SPP as renewable energy with its
associated renewable certificates, then renewable energy with its renewable certificates would be bought from SPP to meet the
Owner Communities’ needs.
Generation and Consumption Comparison
The following visual shows relevant electricity generation and consumption, on the same scale through 2024, with separate lines
showing the related portions from renewable energy. It also includes forecasts through 2030 based on Fort Collins modeling and
Platte River’s 2024 IRP staA recommended ‘Optimal New Carbon’ scenario. These forecasts do not include any potential Fort Collins
Community consumption reductions (and lower purchases) from actions identified in the Our Climate Future Pathway to 2030.
As of 2024, Fort Collins has a 48% ownership share of Platte River and purchases 36% of Platte River’s generation.
Platte River Generation
Platte River Generation from Renewables
Owner Communities Purchases of Platte River Generation
Fort Collins Purchases of Platte River Generation
Fort Collins Purchases from Renewables
0
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1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
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1995 2000 2005 2010 2015 2020 2025 2030
Electricity
MWh
Forecast
This handout provides foundational knowledge relevant to Fort Collins Utilities' accounting of renewable energy, to better inform
discussions on the Community's Our Climate Future plan, related greenhouse gas inventory, policies, and goals, as well as the
interests and priorities of both external partners and the community at large.
Electricity Accounting: Renewable Energy
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Goal Considerations
Renewable energy goals can be based on either electricity generation or consumption, and generally utilize annualized accounting
(i.e., annual totals per reporting year). This approach follows the Global Protocol for Community-scale GHG Emissions used by the
Fort Collins Community’s Greenhouse Gas Inventory, the State of Colorado’s methodology for its Clean Energy Plan reporting, and
the RE100 reporting standards.
Annualized accounting for a generation-based goal reflects all generation within a reporting year. Fossil energy generated at any point
in a reporting year reduces that year’s progress towards 100% renewable generation.
For consumption-based goals, annualized accounting looks at the amount of renewable energy available for consumption within a
reporting year, compared to total energy consumed during the same period. With this, 100% renewable energy consumption means
as much or more renewable energy was available, than total energy consumed during the reporting year.
ICLIE USA recently included a new appendix in its US Community Protocol that provides guidance for how communities can begin to
approach hourly (24/7) electricity emissions accounting in the future, but it’s currently resource intensive and limited by data
availability. Instead of looking at totals across a reporting year, this approach looks across each hour of a reporting year individually.
Note that emissions goals generally reflect a percent diAerence from a baseline year. This percent progress will diAer from percent renewable, until at or near 100%.
Relevant Goals to the City of Fort Collins
The following describes renewable energy related goals from past legislation, policies, plans, and resolutions.
Resource Diversification Policy (RDP) Adopted by the Platte River Power Authority Board in 2018
This policy directs Platte River staA to “proactively work toward the goal of reaching a 100 percent non-carbon resource mix by
2030, while maintaining Platte River’s three pillars of providing reliable, environmentally responsible and financially sustainable
electricity.” It covers all Platte River generation from owned assets, power purchase agreements, and regional purchases.
Clean Energy Plan (CEP) Adopted by Colorado Legislature in 2023 (originally 2021)
This legislation requires “any clean energy plan at the public utilities commission that, as filed, will achieve at least an eighty
percent reduction in greenhouse gas emissions caused by the utility's Colorado retail electricity sales by 2030 relative to 2005
levels.” As a public entity, Platte River is not required to comply with this legislation but has committed to doing so voluntarily. In the
legislation, emissions from electricity generation follow that generation when it’s bought or sold. For example, when Platte River
sells excess generation unused by its Owner Communities, the purchasing utilities must report the associated emissions, which
are then subtracted from Platte River’s overall generation emissions reported. In the end, this legislation covers all generation
consumed by Platte River and its Owner Communities, regardless of who generated it (whether Platte River, regional utilities, etc.).
Our Climate Future (OCF) Plan Adopted by Fort Collins City Council in 2021
This plan states in the Big Move 12 outcome that “everyone in the community receives a ordable and reliable 100% renewable
electricity, including from local sources”, supported by a goal to “provide 100% renewable electricity by 2030.” It covers all the Fort
Collins Community’s electricity consumption, in alignment with the Community’s Greenhouse Gas Inventory. Today, three primary
sources serve this electricity consumption: Fort Collins Utilities through purchases of Platte River generation (95%) and local
renewable generation (<2%), local renewable generation consumed directly by the residents generating it (<2%), and Xcel Energy
through their own generation (<1%).
Resolution 2018-094 Adopted by Fort Collins City Council in 2018
This resolution “establishes the goal of a 100% renewable electricity supply to the City from Platte River supported by the Fort
Collins Utilities distribution system by 2030, without compromising the three principles of a ordability, reliability, and
environmental stewardship for Fort Collins Utilities, Platte River, and our community.” It covers Fort Collins Utilities wholesale
electricity purchases from Platte River.
Impact of Platte River Power Authority’s 2024 IRP
Platte River’s 2024 Integrated Resource Plan (IRP) identified 5 potential scenarios, with all achieving a 100% non-carbon resource mix
by 2040. All 5 scenarios include retiring all current coal generation by 2030, while adding a significant amount of new wind, solar, and
battery storage. All 5 scenarios also include continued operation of 5 existing natural gas turbines. 4 of the 5 scenarios include the
addition of 2 to 7 new aeroderivative turbines (depending on scenario) that will initially be fueled by natural gas, then converted to run
with a blend of hydrogen by 2035, and 100% hydrogen by 2040.
The Platte River staA recommended ‘Optimal New Carbon’ scenario, as it stands in the IRP today, achieves ≈88% renewable
generation in 2030, with an additional increase in 2035, leading to 100% renewable generation in 2040. This scenario generates
enough renewable energy for the Fort Collins Community’s electricity consumption to be at or near 100% renewable by 2030.
Maintaining 100% renewable energy after that point will require continued Community vigilance on electricity consumption and
growth, or the installation of additional renewable generation.
The ‘No New Carbon Portfolio’ scenario, which does not include the addition of any aeroderivative turbines, instead relies on
substantial investments in additional battery storage beyond the other scenarios. This costs more than double that of the staA
recommended scenario, at an additional ≈$2.6 billion.
v20250520
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