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Home My WebLink AboutMemo - Mail Packet - 3/15/2016 - Memorandum From Lindsay Ex Re: March 10 Agenda Item #1 - Climate Action Plan - Updated Presentation1 Climate Action Plan Jeff Mihelich, Jackie Kozak Thiel, Mike Beckstead, Lucinda Smith, Lindsay Ex March 10, 2016 Good News! • Significant resources with positive results • In-house model to quantify results • Potential path to 2020 goals • Significant public engagement • Initiatives you can invest in immediately 2 Questions for City Council 1. Does Council have feedback on the proposed initiatives outlined in the draft roadmap to the 2020 goals? 2. Are there any initiatives that Council would like to consider investing in immediately? 3. Is Council interested in requesting Platte River to explore (via a study) a separate electricity rate structure for Fort Collins (and more diversified resource mix) to achieve the City’s goals? 3 CAP Journey 4 CAP Goals & Framework September Work Session Open House Assemble Teams & CAP Exec Modeling CAC Open House & Business Workshop March Work Session 2017-2018 BFO 2020 CAP Strategic Plan (status update) Implement, Innovate, Evaluate 2015 2016 2017+ Mid-Cycle Offers Funded CAP Journey 5 CAP Journey 6 -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% % Change from 2005 Change in Community Emissions Since 2005 Population % Change in GDP * Does not include the Keep Fort Collins Great tax collections CAP Strategic Initiatives 7 PROJECT TEAMS • Energy Efficiency • Clean Energy • Multi-Modal Planning & Development • Road to Zero Waste • Water and Land Use • Preparation, Adaptation, and Resilience* SUPPORT TEAMS • Measuring CAP Performance • Financing Mechanisms • Messaging & Engagement • Pilot Projects & District Scale Initiatives • Climate Economy & Partnerships *Team currently on hold Feedback: Open House and Additional Events 8 • Open House - 170 attendees • Additional feedback: How to engage the community’s world-class experts to help us reach our goals? Which of these initiatives can the private sector lead on? Feedback: Community Advisory Committee 9 • Represent the Triple Bottom Line • Provided feedback on all initiatives • Key Feedback: • How to move goals from aspirational to operational? • Ensure actions can be replicated • More information about investments and business assumptions needed CAP Journey 10 Draft Roadmap to 2020 *Reductions are estimates and rounded to the nearest thousand 11 Draft Roadmap to 2020 12 PATHWAYS TO ACHIEVING THE 2020 GOALS (20% below 2005 levels) ACCELERATED PATHWAY (initiatives with highest impact) ~$219M ($52M City) COST EFFECTIVE 2020 (cost/GHG ton reduced, 2016-2020) ~$181M ($62M City) COST EFFECTIVE 2050 (cost/GHG ton reduced, 2016-2050) ~$248M ($145M City) Note: Costs are estimates and rounded to the nearest thousand; Total costs, including city and community costs, to get to 2020 A B C Long-Term Funding Strategies 13 Funding Options: • City Debt/Cash • Utility Rates/Debt • Public Private Partnerships • Private Debt & Grants City Bonds City Green Bonds Establish Green Bank Considerations: • Funding follows the Project • Projects need positive cash flow to support investment • Project Maturity & Vetting • City Debt & Rate Capacity • Examples: • On-Bill Financing Roadmap to 2020 High Impact Initiatives 14 Rank Initiative 2020 Impact (CO2 e Tons) % of 2020 Roadmap Total Costs (2016-2020) Cost Effectiveness (2016-2050, $/GHG) 1 Business Efficiency Portfolio – Base 153,000 30.8% $39,246,000 $25 2 Community Recycling Ordinance Implementation 106,000 21.3% $21,437,000 $23 3 Platte River Renewables Purchase (Tariff 7) 42,000 8.4% $6,176,000 $22 4 Expand Congestion Management System 36,000 7.2% $7,802,000 $35 5 Business Efficiency Portfolio – Expanded 30,000 6.0% $22,213,000 $30 *All reductions and costs are estimates and rounded to the nearest thousand, Total costs to City and Community Roadmap to 2020 High Impact Initiatives 15 Rank Initiative 2020 Impact (CO2 e Tons) % of 2020 Roadmap Total Costs (2016- 2020) Cost Effectiveness (2016-2050, $/GHG) 6 Home Efficiency Portfolio – Base 26,000 5.2% $7,809,000 $23 7 Power Purchase Agreement for Combined Heat Power 21,000 4.2% $4,605,000 $94 8 Home Efficiency Portfolio – Expanded 21,000 4.2% $13,181,000 $27 9 Change Land Use Patterns (City Plan & Transportation Master Plan Update) 18,000 3.6% $1,143,000 $3 10 Solar Power Purchase Program 15,000 3.0% $33,892,000 $180 *All reductions and costs are estimates and rounded to the nearest thousand, Total costs to City and Community Roadmap to 2020 Additional Initiatives 16 Rank Initiative 2020 Impact (CO2 e Tons) % of 2020 Roadmap Total Costs (2016- 2020) Cost Effectiveness (2016-2050, $/GHG) 13 Utilities Rooftop Solar Incentives 9,000 1.8% $22,225,000 $148 16 Trip Reduction Programs 4,000 0.8% $886,000 $7 21 Municipal Biomass Burner 2,000 0.4% $5,168,000 $111 23 Building Energy Disclosure & Scoring 2,000 0.4% $3,247,000 $101 *All reductions and costs are estimates and rounded to the nearest thousand, Total costs to City and Community Implementation Investment Opportunities 17 Initiative 2020 Impact (CO2e Tons) Cost to the City (2016* Capital & O&M) Costs to the City (Annual Ongoing Capital and O&M) Human Resources 1. Building Energy Disclosure/Scoring 2,000 $39,000 $85,000 1 FTE 2. Home & Business Efficiency Portfolio 230,000 $931,000 $1,025,000 1.5 FTE 3. Solar Incentives & Rebates 9,000 $335,000 $377,000 0.5 FTE 4. Municipal Green Waste Sites 100 $186,000 $20,000 0.3 FTEs 5. CAP Program Support** Enabler $148,000 $321,000 3 FTEs 6. CAP Pilot Projects/Innovation Fund Enabler $190,000 $190,000 - 7. Biomass Feasibility Study (Note: one time funding) Enabler (1900) $75,000 $0 - Total Costs in 2016 $1,904,000 $2,018,000 6.3 FTEs • Note: Highlighted initiatives ready for immediate appropriation; all estimates rounded to the nearest thousand • *2016 Cost - (Assumes FTE start date in July) • **1 FTE for CAP Program Support requires further vetting Platte River Renewable Rate Study 18 • Fort Collins could request Platte River to explore diversified energy mix (more renewables) options specifically for Fort Collins • Implications: Separate rate structure Significant reductions in 2020 and long-term • Approximately $50,000 to conduct a study LESS COAL MORE SOLAR AND WIND (RENEWABLES) CAP Journey – Next Steps 19 CAP Goals & Framework September Work Session Open House Assemble Teams & CAP Exec Modeling CAC Open House & Business Workshop March Work Session 2017-2018 BFO 2020 CAP Strategic Plan (status update) Implement, Innovate, Evaluate 2015 2016 2017+ Mid-Cycle Offers Funded Questions for City Council 1. Does Council have feedback on the proposed initiatives outlined in the draft roadmap to the 2020 goals? 2. Are there any initiatives that Council would like to consider investing in immediately? 3. Is Council interested in requesting Platte River to explore (via a study) a separate electricity rate structure for Fort Collins (and more diversified resource mix) to achieve the City’s goals? 20 Implementation Investment Opportunities 21 Initiative 2020 Impact (CO2e Tons) Cost to the City (2016* Capital & O&M) Costs to the City (Annual Ongoing Capital and O&M) Human Resources 1. Building Energy Disclosure/Scoring 2,000 $39,000 $85,000 1 FTE 2. Home & Business Efficiency Portfolio 230,000 $931,000 $1,025,000 1.5 FTE 3. Solar Incentives & Rebates 9,000 $335,000 $377,000 0.5 FTE 4. Municipal Green Waste Sites 100 $186,000 $20,000 0.3 FTEs 5. CAP Program Support** Enabler $148,000 $321,000 3 FTEs 6. CAP Pilot Projects/Innovation Fund Enabler $190,000 $190,000 - 7. Biomass Feasibility Study (Note: one time funding) Enabler (1900) $75,000 $0 - Total Costs in 2016 $1,904,000 $2,018,000 6.3 FTEs • Note: Highlighted initiatives ready for immediate appropriation; all estimates rounded to the nearest thousand • *2016 Cost - (Assumes FTE start date in July) • **1 FTE for CAP Program Support requires further vetting 22 Climate Action Plan Jeff Mihelich, Jackie Kozak Thiel, Mike Beckstead, Lucinda Smith, Lindsay Ex March 10, 2016 23 IMMEDIATE (next two weeks) • Building Energy/Disclosure • CAP Program Manager • SSA Financial Analyst • Biomass Feasibility • CAP Pilot Projects/Innovation Fund NEAR TERM (adt’l vetting, ~60 days) • Energy Efficiency Programs • Solar Rebates and Incentives • Smart Grid and Systems Operation Manager • Municipal Green Waste Site Implementation Investments Timeline Implementation Investments Additional Info 24 Timing Initiative ($ 000’s) 2016 Capital & O&M Ongoing Annual Capital and O&M Light and Power General Fund HR Ongoing (FTE) One- Time Ongoing One- Time Immediate Building Energy Disclosure/Scoring $ 39 $ 85 85 1 CAP PM and Financial Analyst 87 188 94 94 2 CAP Pilot Projects/Innovation Fund 190 190 65 125 - Biomass Feasibility Study 75 75 75 - Near-term Energy Efficiency Portfolio 931 1,025 175 850 1.5 Municipal Green Waste Sites 186 199 20 179 0.3 Smart Grid and Systems Operations Manager 61 133 133 1 Solar Incentives & Rebates 335 377 77 300 0.5 Totals $ 1,904 $ 2,272 $ 564 $1,215 $114 $379 6.3 The Model 25 Core Variables • Population growth • Number of buildings in Fort Collins • Vehicle miles traveled Initiative- specific Variables • Estimated program uptake • Resource savings • Installation cost Quantified initiatives Consistent data input Transparency Documented assumptions Customized Reports Backup slide - How does the model work? - Where did the estimates come from? - State how it was developed in house? 26 Building Energy Disclosure & Scoring 27 Lead: John Phelan, Utilities; Tony Raeker, Sustainability Services Funding Request: Total Cost – $39,000 (O&M); Ongoing Cost – $85,000 Potential Funding Source: Light & Power Enterprise Key Points: • What is it? • Provides transparency for building energy performance • Can serve as a price signal for the value of high performance buildings • Impact: 0.4% of 2020 Goal; Long-term impacts – HIGH • Eventually impacts most of the existing and future building stock due to turnover in ownership, rental and leasing Energy Efficiency Programs Lead: John Phelan, Utilities Funding Request: Total Cost – $931,000; Ongoing Cost – $1,025,000 Potential Funding Sources: Light & Power Enterprise Key Points: • What is it? • Home and business efficiency incentives • Technical assistance for all customer segments and most technology end uses • Impact: 46% of 2020 Goal; Long-term impacts – HIGH • Supports additional customer participation in business and home retrofit projects • Approximately 3400 additional megawatt-hours of savings 28 Solar Programs Lead: John Phelan, Utilities Funding Request: Total Cost – $335,000; Ongoing Cost – $377,000 Potential Funding Sources: Light & Power Enterprise Key Points: What is it? • Provides incentives, power purchase agreements or community solar options for most customer segments. Impact: 1.8% of 2020 Goal • Will enable ongoing customer participation in both business and home solar projects throughout 2016. 29 Municipal Department Green Waste Site Lead: Susie Gordon, Sustainability Services; Mike Knox, Streets Funding Request: Total Cost – $186,000, Capital & O&M; Ongoing Cost – $20,000 Potential Funding Sources: Waste Innovation Program Key Points: What is it? • A municipal composting site at the Hoffman Mill Crushing Facility to compost green waste generated by municipal activities. Impact: 0.01% of 2020 Goal • Will provide compost for municipal use, lower the City’s landfill fees, reduce costs of buying commercially produced compost, and avoid costs of using fertilizers, pesticides, and herbicides. 30 CAP Program Support Lead: Various Funding Request: Total Cost – $148,000 (O&M); Ongoing Costs – $321,000 (O&M) Potential Funding Sources: Light & Power Enterprise; General Fund Key Points: What is it? • A CAP Program Manager, a Financial Analyst for Sustainability Services, a Smart Grid and System Operations Manager Impact: Enabling Initiative • Provides resources necessary for successful implementation of climate action planning 31 CAP Pilot Program & Innovation Fund Lead: Pilot Projects and District Scale Strategic Initiative Team Funding Request: Total Cost – $190,000 (Capital); Ongoing Costs – $190,000 (Capital) Potential Funding Sources: Light and Power Enterprise; General Fund Key Points: What is it? • Lower barriers to funding projects not accounted for in a department’s budget • Test focused concepts that can be replicated throughout the city Impact: Enabling Initiative • Would allow the City to act nimbly when presented with CAP-related opportunities 32 Municipal Biomass Burner Feasibility Study Lead: Delbert Bernhardt, Forestry; Honore Depew, Sustainability Services Funding Request: Total Cost (one-time) – $75,000 (Capital) Potential Funding Sources: U.S. Forest Service Key Points: What is it? • Feasibility study to evaluate location and facilities suited for a biomass burner • Potential for waste-to-energy source of heating and hot water from woody debris, including Emerald Ash Borer-killed trees. Impact: Enabling Initiative (2000 MTCO2e) • Would lay the groundwork for a municipal biomass burner 33