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HomeMy WebLinkAboutMemo - Mail Packet - 2/7/2013 (8)City Of Fort Collins MEMORANDUM Date: February 4, 2013 To: Mayor Weitkunat and City Councilmembers r Thru: Darin Atteberry, City Manag ea From: Bruce Hendee, Chief Sustainability Officer Pik - Steve Catanach, Light and Power Operations Manager Katy Bigner, Project Coordinator Sustainability Services Area 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.2170 970.224.6107 - fax fcgov.com Re: Work Session Summary for December 11, 2012 - Status Update on FortZED: Completed Response to Council Questions Councilmembers Present: Karen Weitkunat, Mayor Kelly Ohlson, Mayor Pro Tern Ben Manvel Lisa Poppaw Gerry Horak Work Session Participants: Bruce Hendee, Chief Sustainability Officer Steve Catanach, Light and Power Operations Manager Katy Bigner, Project Coordinator Judy Dorsey, Executive Director, Colorado Clean Energy Cluster, Principal, Brendle Group On December 11, 2012, City staff presented to City Council on the status of the FortZED (Zero Energy District). This presentation included the concept, objectives, and strategies to achieving a zero energy district within Fort Collins, and progress to date. As FortZED is transitioning from a specific grant project and grassroots initiative, the immediate objective is to move to a replicable model that is better defined, governed and measurable to assist in achieving City goals and strategies identified by the Climate Action Plan and Energy Policy, while benefiting the city's economic health. Staff did not request direction or ask specific questions for this update. Summary Discussion and Questions Asked: Councilmembers had a wide range of questions and requested clarification from City staff related to better understanding the objectives of the ForIZED initiative, how regular citizens would benefit, and progress to date. Staff understands that FortZED will benefit from improved communication to Council, citizens and stakeholders about what FortZED is and its objectives and projects. :Fort of The following responses address questions from Council during the December work session: How much money was spent on FortZED and, from what sources? • From 2009-2012, the FortZED project received $6.3 M from the Department of Energy (DOE) with $5.1 M in local matching funds for the Renewable Distributed Systems Integration Cooperative Study. The City was the prime recipient of the funds, responsible for channeling this money to project partners. The City has had expenses related to this project in the form of project management, equipment and administration costs for the participation in the project and improvement of City facilities. However, the City had facility upgrades already planned and the DOE study and accompanying funds allowed these projects to proceed at a reduced cost to the City. It is anticipated that the DOE will provide additional reimbursement for project management costs in 2013. • The RDSI project successfully demonstrated a peak load demand reduction of more than 20% using distributed energy resources such as solar. 2009-2012 costs related to RDSI include: RDSI Project Expenses City Investment Equipment, supplies, software, etc. $314,50 Personnel $225,60 *Facilities upgrades (construction) $151,50 Events $1,80 Total $693,400 *The Facilities Department, as a project participant, modified the Heating, Ventilation and Cooling System at City Hall as well as made efficiency improvements and added controls Reimbursement for RDSI City Expenses: From DOE $286,40 From Community Foundation $39,200 From Downtown Development Authority $250,00 Total $575,600 Net Expense to City *$117,800 Staff anticipates additional reimbursement for personnel cost from the DOE 2 From 2008-2012, Non-RDSI expenses paid for by the City have been related to the development of a FortZED website, marketing materials and events, from the City Manager's Office= $10,822 In -kind donations of energy efficiency equipment such as lighting (CFLs, LED bulbs), from Utilities/Energy Services. 2. What would a regular customer get from FortZED, provided in bulleted form? • FortZED strategies increase the level of awareness and understanding of existing Utility programs that promote energy efficiency and conservation to residents and businesses such as efficiency rebates (home appliances, lighting), home efficiency audits and renewable energy programs • FortZED Community Energy Challenge provided residential customers with the ability to demonstrate and pilot new technologies that advance the use and efficiency of energy and renewable energy generation • Support for community -wide Council policy goals including carbon reduction, energy efficiency and renewable energy • Potentially improved funding opportunities for customers within the entire community as a result of major funders' (i.e. DOE) awareness of Fort Collins' leadership, commitment to goals, and proven track record in accomplishing challenging, technologically innovative projects. An example of this would be the Smart Grid Investment Grant • As FortZED achieves more and lasting results it would over time, result in energy security, grid stability and lower carbon emissions • FortZED has recently received an additional RDSI grant 3. To achieve a zero energy district, what do we need to offset the energy consumed in MWH? Response: • If the City stays on a business as usual path, energy use within the district is expected to increase to approximately 320,000 MWH by 2030 (forecasted). This would be the total amount of energy that would have to be offset to achieve a zero energy district. What is the 15% that's been achieved toward zero comprised of? Response: • The 15% statement should have been stated as "will be achieved" versus "has been achieved" as the planning tool projected to 2030, if we continue on our existing Business as Usual (BAU) path • The 15% progress towards zero energy is based on results of existing efficiency and solar programs at the same rate of participation, assuming they continue to provide on -going incremental savings to 2030. That is, customer savings from current participants, and on -going participation at a similar rate through 2030. 13% of this calculated savings is from efficiency and 2% from solar programs. The 15% statement should have been stated as "will be achieved" versus "has been achieved" as the planning tool projected to 2030. • Existing efficiency programs, forecast out to 2030, are projected to save 41,980 MWh. This is 13% of the BAU forecast electricity consumption of 319,118 MWh /_ art_ C�in • Existing solar PV renewable energy programs, forecast out to 2030, are projected to generate 7,196 MWh. This is 2% of the BAU forecast electricity consumption of 319,118 MWh • Added to together it represents a 15% reduction coming from the ongoing contribution of "existing" programs, forecast out to 2030 4. What is the percentage year by year toward the 15% since 2008? *Please refer to Question #3 5. Related to the provided attached diagram #4 (Illustrative Representation of Potential Timeline for Fort Collins Power Transition), what happens in 2024 related to coal? Response: • It is important to note that this is an illustrative chart built in real-time during a design workshop. This diagram doesn't represent a specific resource mix that Fort Collins should pursue or the optimal timing of resource investments. It is the result of an exercise to answer the question, "what would it take to move to exclusively local and renewable resources by 20257" The purpose of the chart is to demonstrate a portfolio of strategies that could be employed in pursuing net zero. A modeling tool has been created by the Brendle Group for Fort Collins Utilities. The tool enables the FortZED Steering Committee to evaluate the cost benefit of various implementation strategies. In this illustrative analysis, coal comes back into the resource mix only because it is a deterministic spreadsheet tool. Coal will continue to be part of the energy portfolio for a long time. While it would be desirable to immediately eliminate this source, it would be impractical and not cost effective. The tool recognizes the practical requirements of using coal at the current time. 6. What would happen in the identified district without FortZED? • The ability to use this defined district as a test bed for research and demonstrating new technologies for renewable energy, smart grid and load management technologies assists the City and the associated industry partners to advance the solutions that are transforming the energy sector. Without FortZED, the objectives of the Energy Policy and Climate Action Plan will continue. However, FortZED's approach and focus contributes to carbon emissions reductions to contribute to achieving the goals of the Climate Action Plan and Energy Policy, increasing renewable energy generation and improve energy efficiency for the City, its business and residents. We would not be the innovation and economic hub in Fort Collins for clean energy technology and investment without FortZED. • FortZED is a research and development tool for the City, CSU and private enterprise. Deployed at a smaller scale, strategies can be tested and implemented as pilots, which can then be deployed throughout the City once initial evaluation has been completed. 7. How do the 2013/2014 budget offers contribute to the net zero energy goal? Response: 11- City of • The three FortZED budget offers (128.1, 128.2, 128.3) support the administration and development of FortZED strategies and projects, community engagement, fund development through collaborative grant acquisition and the development of a technical roadmap. An example of a project will include re-evaluating how community members and residents can participate and contribute to the zero energy goal. Additionally, technical projects can be identified for deep energy efficiency retrofits using a Geographic Information System (GIS) tool that is funded through a FortZED budget offer. These offers are steps to define the technical and economic paths to accomplish the district goals, seek additional outside funding resources and re-establish a customer engagement program. • Utilities programs which serve all customers will continue to be offered both within and outside the FortZED district. Additional engagement and outreach related to FortZED may result in higher participation rates within the FortZED district. The focus provided by FortZED enables the City to attract resources that will enable the City's Climate Action Plan and Energy Plan to be achieved sooner. • FortZED exists to enhance and expand City goals to reduce carbon emissions. It also expands City economic health through enhancement of our City as a clean energy technology hub. Next Steps • Further refine a clear and understandable description of FortZED and its tangible outcome for the Fort Collins community. • Establish criteria for 2013 requests for proposal for an efficiency and renewable energy potential study and for a community engagement program. • Implement the FortZED programs funded through the BFO process.