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HomeMy WebLinkAboutMemo - Mail Packet - 6/7/2022 - Memorandum From Honore Depew Re: Our Climate Future Work Session Follow Up Questions - Councilmember Peel Questions 1 OCF Exec includes: Jackie Kozak Thiel, Sustainability Officer; Seve Ghose, Community Services Director; Caryn Champine, Planning Development and Transportation Director; Kendall Minor, Utilities Director; Claudia Menendez, Equity Officer, Lindsay Ex, Environmental Services Director Environmental Services Department 222 Laporte Avenue Fort Collins, CO 80522 970.221.6600 MEMORANDUM Date: June 1, 2022 To: Mayor Arndt and City Council Thru: From: Cc: Kelly DiMartino, Interim City Manager Tyler Marr, Interim Deputy City Manager Our Climate Future Executive Steering Committee (OCF Exec)1 Honoré Depew, Climate Program Manager John Phelan, Energy Services Manager and Policy Advisor Re: Our Climate Future Work Session Follow Up Questions The purpose of this memo is to provide Council with questions raised by Councilmember Peel regarding Our Climate Future, which was noted at the April 12 Work Session on this topic. Following the Our Climate Future (OCF) Work Session on April 12, staff received nine questions regarding OCF plan development and implementation. The attached responses were compiled by John Phelan and Honoré Depew, with additional input from Utilities and Sustainability Services staff and executives. The original questions are italicized and staff responses are bulleted. The next Council conversation on OCF is currently scheduled for the October 11, 2022 Work Session with the following purpose: Seek feedback on priority actions and key milestones for near-term/transitional progress (draft Our Climate Future Next Moves Plan for '23-'24) and for transformational/long-term progress (pathways and decisions needed to achieve 2030 waste, energy, and climate goals that embed resilience and equity). April 12 Our Climate Future Work Session Follow-up Questions from Councilmember Peel Hi Kelly, Here are the questions I had for staff from the last work session. I know it is a lot and I apologize in advance for the length and please let staff know that this is not time sensitive. Also, I don't want to throw out the baby with the bathwater because I do think that there are some good things in the climate action plan. I am just concerned about the trade-offs, especially when we are looking to bridge a pretty significant funding gap in order to finance some of these climate action moves. Thank you in advance for helping me make the best decisions. 1. Quoted under Big Move #1 "centered in equity and leading with race" and "all parts of our community lead" seems a contradiction. Are we trying to say climate change has a disproportionate effect on minorities or that we need to ensure their voice is heard? to address the climate emergency reflect that that there are disproportionate impacts on historically marginalized populations and that we need to ensure their voice is heard so that all parts of our community can lead and benefit from acting on climate. Our Climate Future recognizes that inequities are exacerbated by climate change and that historically marginalized populations, including Black, indigenous, and people of color (BIPOC) members of our community, are more susceptible to climate change impacts. Our Climate Future was developed with the goal of achieving equitable solutions that address a spectrum of needs within our community. Leading with race means we recognize that the most disparate outcomes in our country follow racial lines, and our equity indicators data confirms that Fort Collins is no exception. An emphasis on racial disparities is a starting place for inclusion as we expand to bring in all marginalized populations and all parts of our community. This approach is intentional about addressing barriers and designing solutions that work for those most impacted, while also ensuring all community members can benefit, participate, and influence outcomes. 2. What is the cost to our environment for a climate resilient community?(#3) Specifically in the following questions? Does our current grid support 100% renewable electricity by 2030? Will we have to build more wind turbines/solar panels in Colorado or surrounding states? What is plan to dispose of old wind turbine blades, old solar panels and used batteries? Will mining have to be increased to provide elements for turbines, solar panels and batteries? What will be the impact to our environment in regards to increased mining? Big Move 3 (Climate Resilient Community) recognizes that being prepared for and adapting to a changing climate is a necessary component of climate action. In the last several years, we have experienced the costs and impacts of fires in our watershed, recurring poor air quality from wildfire smoke, more frequent extreme heat, and a severe flooding event. Does our current grid support 100% renewable electricity by 2030? One strategy for resilience is to have more local renewable electricity supported by battery storage and configured for emergency operation. Utilities distribution grid is well suited for this with the inherent design, sizing standards for equipment and substations and advanced operational capability. There will be new and changing requirements as we work with Platte River to reach full implementation of renewable sources and enter a future electricity market. Will we have to build more wind turbines/solar panels in Colorado or surrounding states? Colorado and nearby Wyoming have abundant wind and solar resources. It is likely that new wind and solar projects will be located regionally. At the same time, the expected formation of a larger multi-state electricity market, including Platte River Power Authority, will expand the potential footprint for renewable resources serving our community. What is plan to dispose of old wind turbine blades, old solar panels and used batteries? In terms of recycling, equipment. Both wind and solar components typically have valuable materials that may be repurposed, reused or recycled. We are seeking regional opportunities that would support establishing solar panel recycling; this would require a much larger footprint than just Fort Collins. Batteries already have a robust recycling and reuse system as the materials are quite valuable. The Council Priority for Circular Economy solutions is one place where OCF staff are supporting the Economic Health Office to develop and deliver an updated strategic plan that will seek to foster regional markets for recycling these types of materials. Will mining have to be increased to provide elements for turbines, solar panels and batteries? Resources from mining are required for all products today, from cars to solar and wind components and batteries of course. These products come from a global commodities market. For batteries in particular, there is currently a shift underway towards a safer and less impactful chemistry that does not use cobalt. One of the reasons for this shift is the poor human rights and environmental history of cobalt mining. What will be the impact to our environment in regards to increased mining? The biggest current impact we see in our community from resource extraction is poor air quality from local and regional oil and gas operations. Reducing our need for these resources could potentially reduce these immediate, severe, and local negative air quality impacts. 3. What is the impact plans like these will have on our economy? On small businesses who have to comply with increased compliance? On housing costs? On jobs lost in the oil and gas industry? It is important to be clear that there will be real costs associated with the transition to a future that is zero waste, carbon neutral, and powered by 100% renewable electricity. And there are real costs associated with not taking action to mitigate emissions and adapt to a changing climate. The scale of climate action needed and the broad, inclusive nature of the Our Climate Future plan makes it hard to quantify impacts holistically due to the wide range of variables. Rather, the organization focuses on the costs of specific projects the City will lead, with both climate and community benefits, as they come before Council. This allows the community to transparently and specifically analyze tradeoffs between climate action projects and other community priority projects. An example would be the investments needed to ensure the Transfort transit system offers reliable service and is accessible to all. Supporting an enhanced transit network is one of the critical pathways to achieving OCF goals with additional economic and community benefits. The costs of investment in the system have been clearly projected for review. [Impacts] On small businesses who have to comply with increased compliance? Locally, total costs and benefits of programs and policies to compel voluntary or regulatory actions are considered specific to those initiatives. They City is currently piloting a reimagined sustainable business support program (formerly ClimateWise) to help businesses across the community strategically invest resources that increase their triple bottom line (people, planet, and profits) and encourage transitions to a zero waste, renewable, carbon-free future. Council may see a budget offer this fall to expand that business support program. Many businesses including major investment companies, manufacturing companies, and retailers have all begun to consider both the costs of climate investments and the impact of climate change on their operations, investment strategies, and profits. As a result, taking into account the cost of not acting on climate change has become an increasingly accepted and encouraged aspect of business planning and investing. (Example: the largest international hedge fund includes a climate impact variable in all their decision-making criteria.) By some estimates, the global renewable energy market (one facet of the climate economy) was valued at $881.7 billion in 2020 and is projected to increase to $1,977.6 billion by 2030. This constitutes a significant economic opportunity for local business growth through innovation and advancing new solutions to long-standing problems. [Impacts] On housing costs? Council has spent some time in recent months discussing the question of cost impacts on housing from policies and initiatives that advance community goals for reducing carbon emissions and increasing health and livability outcomes for residents (e.g., Building Code and Land Use Code updates). A work session is currently scheduled for June 14th to discuss the Land Use Code in depth. [Impacts] On jobs lost in the oil and gas industry? In Colorado, nonprofit Solar Energy International (SEI) is part of a nationwide effort to retrain mining, oil funded by a grant from the Colorado Department of Labor and Employment, aims to fill skills gaps among workers in traditional energy fields. Locally, the City along with multiple partners continues to invest in workforce development, through Talent 2.0, with a focus on assisting displaced workers (those without current stable jobs) to retrain into more stable industries. While no specific effort exists to retrain former Oil and Gas employees locally the programs of Talent 2.0 can and likely have served these workers locally. 4. What is vision for zero waste neighborhoods (#2) and local, affordable, healthy food (#8)? Are these envisioned to be city run and funded? The vision for Big Move 2 (Zero Waste Neighborhoods) And for Big Move 8 (Local, Affordable, and Healthy Food) the vision is a Each Big Move has an associated set of Next Moves. The Next Moves are evaluated for their impact on goals, benefits and costs, and potential results for improving equity and resilience. Next Moves listed in the OCF plan provide flexible options for businesses, residents, industries and institutions to find their place of action and leadership. OCF implementation relies on shared leadership between the City and community to leverage community expertise and action across the community, including in how projects are resourced. City Council has prioritized policy and education work in this space, supporting and directing City-led initiatives while encouraging community leadership at all levels. o As examples of City-led initiatives, OCF Next Moves 5 and 8 in Zero Waste Neighborhoods have been implemented over the last year at Council direction using City funds and staffing resources - Implement Universal Recycling Ordinance (ZNW5) and Implement Disposable Grocery Bag Policy (ZWN8). o As an example of a community-led initiative that advances both the Zero Waste Neighborhoods and Local, Affordable, and Healthy Food Big Moves, a local nonprofit called Vindeket Foods partners with grocery stores, restaurants, and farms to reduce wasted food by getting it into the hands of people who will eat free of charge. This rood rescue organization addresses both food waste and food access without the use of City resources. 5. What is the long term plan for efficient, emissions free buildings? (#6) Are we looking at fines or fees for non-compliance of energy usage? How will this affect small businesses and non-profits? Big Move 6 (Efficient Emissions Free Buildings) recognizes that our buildings use of energy from electricity and natural gas is the largest component of our baseline carbon inventory. The electricity portion of buildings use will eventually be carbon free when sourced from renewable sources over time. Reducing the natural gas portion of buildings use will increasingly be the focus of efficiency and electrification programs and policies. Strategies for new buildings will focus on building codes with regular three-year cycles planned for 2024, 2027 and 2030. This Next Move will be covered in more detail in our updated 2030 Pathways plan with a Council Work Session scheduled for October 11. Strategies for existing buildings include continuation of our long-standing efficiency programs, benchmarking and transparency from our Building Energy and Water Scoring program (BEWS, for commercial and multifamily) and potential programs for building performance standards and home energy score real estate information. These new initiatives could be structured in various ways, possibly including incentives and requiring upgrades, as well as potential fines or fees. However, such mechanisms are not yet designed and development would include substantial public engagement and future Council action. Improvements in efficiency of buildings helps small businesses and non-profits in multiple ways. First, more efficient buildings reduce utility bills helping these entities lower there operating costs and shift those resources to more valuable business financial needs. Second, efficiency improvements support a large network of small businesses who provide the services. As shown in our annual reports, efficiency efforts have reduced the community-wide electricity use per capita by 19% since 2005 and generate over $40M annually in local economic benefits. 6. How much input was given from the community for this plan? Stakeholders? Should a plan of this magnitude be put to the voters of Fort Collins? Fort Collins has more than two decades of historic leadership addressing the climate emergency. Community members have consistently reaffirmed their support for the work, as documented in the statistically valid Community Survey which most recently (2021) found that nearly half of respondents feel the City should be doing more to prioritize environmental efforts. (With another 47% saying we should keep up the same effort.) As with all local government efforts, community engagement is never actually finished. And OCF Big Move 1 commits to Shared Leadership and Community Partnership. OCF implementation centers people in the work as much as the plan development process did. For example, active community consultants are embedded in OCF strategic leadership and Next Moves project leadership, and a climate equity advisory group is currently being developed to guide implementation. How much input was given from the community for this plan? The Our Climate Future plan was developed in three phases over 18 months with input from community members and stakeholders from across Fort Collins. o Phase I (Understanding Community Priorities) o Phase II (Strategic Planning) o Phase III (Plan Writing, Release, and Adoption) Throughout Our Climate Future Phase I and II engagement, over 1,000 participants representing a wide diversity of racial, ethnic, age, socioeconomic and other demographic backgrounds shared ideas for a sustainable future. The entire engagement process is detailed in Appendix I of the plan. Stakeholders? The following community members and organizations took leadership roles in Our Climate Future plan engagement, acting as Plan Ambassadors and Community Partners to give a voice to their respective communities. The roles varied based on the lived experiences and interests each person/group offered. o Community Partners: on: Indigenous and Native - o Plan Ambassadors: sus: Danny Should a plan of this magnitude be put to the voters of Fort Collins? Strategic plans (such as Housing Strategic Plan, Parks and Recreation Master Plan, and Our Climate Future) are adopted by City Council as the representatives of the people of Fort Collins. Because they are adopted by Resolution and not by Ordinance, they are not legally binding documents. Referring a strategic plan to the ballot is not a common practice and that decision would be at the discretion of City Council. 7. Are we being transparent about the costs of this plan? The Our Climate Future plan is just that, a plan. Funding commitments by the City are made transparent through our Budgeting for Outcomes process for specific initiatives and ongoing City operations. Private sector investments, both business and households, are made according to their own needs and values. Community wide costs and benefits for the broad scope are estimated for individual elements and brought forward to support decision making at various levels, up to and including City budgets. OCF estimates a cost range for each of the Next Moves described within the plan, as summarized in the OCF Big and Next Moves Guide at: https://ourcity.fcgov.com/ourclimatefuture. 8. Does this plan help create energy dependence on other countries? (example Europe's dependence on Russia) Fort Collins energy sources have historically been centered in the Western United States while also being influenced by global commodity markets. The transition to more renewable electricity sources will also be centered in the region and with a likely larger footprint for a future regional electricity market. Material supplies for many renewable components include a global supply chain that is expected to continue and a factor to be aware of. The current way we create and deliver power to our community is not without its own uncertainties and costs. As a commodity with limited supply, fossil fuels like coal and natural gas are subject to market price variability based on supply and demand. These costs are on an upward trend. The amount of electricity from hydropower has already been reduced due to the impact of western drought and is likely to continue. There is a conceivable point at which continued reliance on limited supply commodities for energy will be much more costly. Moving towards a future that relies on abundant supply, such as solar and wind, helps to insulate us from future cost uncertainties of fossil fuels. This is a major part of the reason that major industrial users are moving forward with their own commitments to renewable energy. 9. Is the following information being considered when putting this plan forward? a) Climate action has real costs, both environmentally and economically. 84% of our energy is still produced by oil/gas/coal. This is only 2 % change from 20 years of a push for renewable energy with a 5 trillion dollar price tag. Colorado is fifth largest crude oil producing state so a large part of our economy rests on this sector. The US is not in the top 10 countries for mining resources needed for batteries, solar panels and wind turbines while China tops the list with 80% of the mining and global refining capacity for the materials needed. Would it be possible to share the source of the above information so that staff can explore it further? As stated in Question #3 response, it is very important to be open and transparent about the investments needed to transition to a clean economy. And about the fact that a lack of climate action has real costs too, environmentally, socially, and economically. The rise in climate related disasters and increased insurance costs are one clear example. Not only does acting on climate reduce the likelihood of the most severe impacts on future generations, but it also represents an opportunity to thrive economically from the investment in our community. Fort Collins has dramatically changed our sources and efficiency in energy use since 2005. Electricity sources in 2021 were over 50% from non-carbon sources (from less than 20% in 2005). Per capita energy use is down across the board (petroleum down 26%, electricity 19% and natural gas 16%). Recognizing global commodities and manufacturing realities are an important component of systemic change that will continue to be focused on federal actions. Decarbonizing our economy presents opportunities for our region and clean energy industry is significant and growing. Establishing policies to meet our carbon reduction innovation, job creation and further cost savings for consumers. Locally, climate action contributes to a thriving and healthy Fort Collins.