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4 - Discussion regarding Climate Action Plan (CAP) and City Renewable Energy Strategy Components of the Draft City Council Study SessionEnvironmental Advisory Board Discussion Regarding Climate Action Plan and City Renewable Energy Strategy Components of the Draft Boulder City Council ~TUDY SESSIC.)N April 8, 2Q08 6: 00-9: oo p. m. Climate Actian Plan, Transpartatian and Renetivable Energy Strategies ta Reduce Greenhouse Gas Emissions 1777 Broadway Municipal Building City Council Chambers This Sti.idy Session will be tele~jised on Mu~zicipal Channel 8 Submit Written Comments ta City COL111C11 ATTN: Alisa Lewis, City Clerk 1777 Broadway, 2nd Floor P.O. B~x 791 Boulder, CO 8(~306 or Fax to 303-441-4478 or E-mail: councilLabouldercolorado.gov Table of Contents I. Purpose :.........................................................................................................................4 Study Session Questions 5 Initiatives 5 Policy implementation 5 Funding 6 II. overview :......................................................................................................................6 III. Background :..............................................................................................................7 Climate Action Plan (CAP) 7 Transportation IVlaster Plan - FasTracks Local Optimization (FLO) 10 IV. Opportunities TO OBTAIN GREATER GHG REDUCTIONS analysis.......... 10 CAP Programs and Services 10 Energy Efficiency 13 Questions 18 2048 Updates to the Residential Green Points Program 18 Commercial Green Code Development 20 Policy Question: Increased Commercial Performance Requirements 20 Questions 22 Transportation -Climate Action Connection 24 Vehicle Use 24 Biofuels 25 Vehicle Efficiency 26 Mobile Source Contribution 27 Transportation Initiatives -removed for EAB 28 CAP Renewable Energy Strategies 28 CAP Marketing 29 Community engagement 31 Neighborhood suppoi-t 31 Recognition programs 31 CAP Summary 32 Questions 32 City Operations and Renewable Energy Strategy 34 Energy Efficiency 34 Renewable Enemy Strategy for City ~perations 34 Questions 34 Financial Analysis 36 Energy costs for the city organization 38 Vehicle Fleet 41 Greenhouse Gas Emissions Reduction Goal 42 Questions 42 V. PUBLIC AND BOARD INPUT 43 CAP Work With the Environmental Advisory Board (EAB) and CAP Advisory Group 43 Transporation Work with EAB, TAB, Planning Board and FLO Committee 44 VI. Questions :.................................................................................................................44 Initiatives 44 Policy implementation 44 Funding 44 VII. Conclusion :.............................................................................................................45 Initiatives 45 Policy implementation 45 Funding 45 MEMORANDUM TO: Environmental Advisory Board FROM: Jonathan Koehn, Manager Sarah Van Pelt, Environmental Sustainability Coordinator DATE: Apri12, 2048 SUBJECT: Discussion of City Council Study Session: Climate Action Plan and Renewable Energy Strategies to Reduce Greenhouse Gas Emissions The Environmental Advisory Board is asked to review the following City Council study session materials and provide input on a subset of the questions. The questions for EAB consideration are the following: 1, 3, 4, 5, and 7. Because the Environmental Advisory Board discussed the Transportation Department's policy and initiative information at their March meeting, most related material has been deleted from this draft study session memo. I. PURPOSE: This study session provides City Council «~ith updated information on the Climate Action Plan (CAP) and the Transportation Master Plan FasTracks Local Optimization (FLO) initiatives. A number of potential strategies are presented and council has the opportunity to discuss how to more aggressively reduce greenhouse gas (GHG) emissions and vehicle miles of travel (V MT) through the CAP and Transportation activities. At City Council's annual retreat in January 2448, council identified a list of potential work items that were categorized as "Climate Action Plan" and indicated an interest in "accelerating" or being more aggressive in achieving the CAP goals. Further, council expressed interest in addressing existing home and commercial building efficiency through further regulations and incentives, including low interest financing. Council also discussed the role of the Transportation Master Plan (TMP) in helping to achieve CAP goals and considered establishing a path to move the city organization towards energy independence. This memo provides background information on the items suggested by council along with an overview of work items currently in the CAP work program, and the associated impacts to the reduction goals of various strategies. Although staff cannot complete all of the items suggested by City Council in 2048, we have included background information, and in Borne cases, options for scope and timing for the remaining initiatives. 4. In addition, previous council direction supported amending the TMP «~ith a (FasTracks Local Optimization) PLO-modified Action Plan project list and developing funding options for PLO-Modified TMP Action Plan implementation. This study session is a check-in with the current council to confirm that we should continue on this course of action. As the previous FLO work focused on infrastructure and programs, council is asked to consider additional potential policy changes that could also achieve transportation and climate benefits. The purpose of this study session is to: • Review the CAP programs, strategies, and estimated results of the current work program; • Present options for enhancing the existing CAP and GHG emissions reductions to achieve 85 percent of the 2012 goal; • Discuss council priorities and potential for more aggressive and longer term emission reduction goals; and • Consider additional policy implementation activities that could be pursued as part of the FLO activities to reduce V MT and GHG emissions. Stucly Session Questions: As the CAP and FLO efforts have similar questions of council, questions from both have been grouped together under the headings of Initiatives, Policy implementation and Funding. Council will likely choose to address each question separately, but it is hoped that grouping them together will promote consideration of the interrelationships and mutually supportive nature of these activities. The following questions are provided for council's consideration. Material related to the question is provided in the body of the memo as noted by the name following the question. Initiatives 1. Does council have questions or comments about the draft renewable energy strategy to achieve energy independence for the city organization? 2. Should staff still proceed with the proposed levels and distribution of funding in the PLO-modified Current Funding and Action Plan list of projects and programs? • If so, does council continue to support staff returning to City Council to amend the TMP with the PLO-modified Current Funding/Action Plan project and program list? Policy implementation 3. Would council like staff to proceed with further evaluation of regulatory options to improve energy efficiency in existing residential buildings? For commercial buildings? 5. 4. For new construction, does council want to see a full scale commercial green building code, or an interim code that addresses energy? If a full scale program, does council want staff to begin the process before the third quarter of 2008? 5. Should staff proceed to develop options for an additional and longer term greenhouse gas reduction goal? 6. Does council have any questions or comments regarding the set of transportation demand management policy initiatives; and where on "the dial" should staff explore further to support the CAP and V MT reductions? Funding 7. Does council have any questions or comments about enhancing CAP programs and services, and the associated tax increase? 8. Does council have questions or comments on transportation funding; and does council still support staff's exploration of options for additional funding for Transportation to pursue GHG and VMT reduction goals, create community connections and to optimize the benefits of FasTracks improvements? • Does council support investigating the range of Action Plan level of funding as represented by the Blue Ribbon Commission example(s) and the FLO- modified Action Plan? II. OVERVIEW: As there are a nutnber of overlaps between the activities to reduce GHG emissions through the CAP and efforts to reduce VMT in the TMP, these combined efforts are being presented for council discussion at this study session. While the FLO work has been oriented to preparing the community for the arrival of the FasTracks service, improving these connections to regional transit services will directly support reductions in GHG emissions. The FLO work considered by the previous council was focused on funding, facilities and programs. That information is included here along with new material related to potential policy initiatives that the city could also pursue in support of CAP and TMP goals. Following the background overview of both the CAP and FLO efforts, the Opportunities Analysis section of this memo is organized around the program areas of the CAP, with the FLO materials contained within the Transportation program area of the CAP. Each program area is identified by a tab for easy reference and the tabs are also referenced in the questions to council. Additional background materials are contained in the attachments. Based on previous discussions by council, staff is also assuming that when applicable, the city organization is expected to serve as a model for community efforts in these areas. 6. Consequently, pilots or other programs will be implemented simultaneously within the city organization and out in the general community. III. BACKGROUND: This section provides a brief description of activities to date for both the CAP and the FLO programs. Climate Action Plan (CAP) The following information provides a very broad background on the development of the CAP, the city's GHG inventory and goal, and estimated results fiom the existing work program. Because there is such extensive information on the development and implementation of the CAP, staff has attached this detailed background information at Attachment A. The 2007 Progress Report for Climate and Energy Programs is included as Attachment B. City Council passed a resolution to develop and implement a local action plan to reduce the community's greenhouse gas emissions in May 2002. The resolution also set an initial GHG target equivalent to the Kyoto Protocol goals which call for 2012 emissions levels that are 7 percent below 1990 levels. The CAP was approved in June, 2006 and established the strategies for reducing emissions. The following information forms the basis of the CAP and indicates the baseline fiom which the program started and the reduction goals. Baseline and target emissions ui metric tons carbon dioxide equi~~alent (mtC02) 1990 Emissions 1,580,942 mtC02 2006 Emissions 1,887,596 mtC02 2012 Emissions target 1,481,107 mtC02 Reduction needed from 406,489 mtC02 2006 to achieve target The following charts illustrate the city's 2006 GHG inventory, broken down by sectors and by source of emissions. 7. 2006 GHG Inventory Breakdown by Sector Transportation 22% Residential 16% J Solid Waste 3%-- Commercial 58% 2005 GHG Inventory Breakdown by Energy Landfill Gas ~ a~ Vehicle Fuel 22% Natural GasElectricity 14% 61 CAP implementation is funded from a CAP taY on electricity use that is collected by Xcel Energy. The 2007 budget was $860,265. The 2008 budget is $875,000. 8. The main CAP strategies are: • Reduce energy use through conservation and efficiency • Shift to renewable energy and fuel sources • Reduce vehicle miles of travel (VMT) The CAP assumed programs and services would be expanded over time to enhance progress toward the goal. In order to achieve the goal by 2012, the community will need to achieve a 22 percent reduction from 2446 emissions levels. If we continue with the current programs, services and funding levels, it is estimated that emissions levels will fall short of the 2412 goal by about half (48 percent). The following chart shows the percentage of emissions reduction from the current CAP strategies and other sources like the Colorado renewable energy standard. Breakdown of GHG reductions -Current Strategies Energy Efficiency 7% Renewable Energy 15% S ho rtFa I I 48% GQ Renewable `Energy Standard 22% Marketing 2% City Generation Transportation 5% 1% When the CAP was approved, we knew that achieving emissions reductions through energy efficiency and renewable energy would require valuable programs and services and extensive marketing and outreach efforts to fully engage residents and businesses to consider investing in these strategies and therefore t~~ould take time to realize results. The CAP recommended increasing programs and service levels over time to accommodate community participation levels and to improve results. In the "Opportunities Analysis" section of this memo, staff outlines areas for expanding CAP programs and services in order to increase emissions reductions. These enhancements to the CAP are estimated to get the city much closer to the 2412 goal - to 85 percent. 9. Transportation Master Plan - FasTracks Local Optimization (FLO} IV. OPPORTUNITIES TO OBTAIN GREATER GHG REDUCTIONS ANALYSIS This section reviews the primary strategies for reducing GHG emissions and provides an analysis of current and proposed enhancements gild potential regulatory options including green building codes. CAP Programs and Services Since the CAP began being implemented in 2007, staff has also been reviewing and analyzing the ability of the CAP to achieve the Kyoto target and has been exploring ways to come closer to meeting the 2012 goal. Staff has looked at the suite of programs and services offered through the CAP and believes the city should continue to focus its efforts and resources in the following areas: • Energy efficiency (including the Cneen Points Program) • Renewable energy • Transportation sector reductions • Marketing (ClimateSmart information and outreach) • City operations and renewable energy strategy The following sections review the primary CAP strategies for reducing GHG emissions and provide an analysis of current and proposed enhancements and potential regulatory options. To some, the enhancements may appear modest, but staff believes they are consistent with the overarching CAP strategies and represent a good set of next steps. The financial and regulatory options described offer the city opportunities to more aggressively reduce emissions by involving a larger segment of the population and including more homes and commercial buildings. By expanding CAP programs and implementing the regulatory measures as described the city can achieve 85 percent of the 2012 target. The majority of the 2007 operating budget was dedicated to reducing energy use through energy audits and related services that were conducted throughout the year. Data on actual results of the implementation will be gathered in 2008, and will be an ongoing activity. Because actual implementation results for 2007 are not available yet, staff has made conservative estimates of programmatic GHG reduction impact using industry standards, the original CAP analysis and other sources like the Boulder County Sustainable Energy Plan (SEP). Staff did not set out to develop options to achieve a certain percentage of the GHG goal. Rather, staff evaluated existing programs, new programs and policies to identify the next 10. best steps for CAP implementation to work toward the goal while minimizing additional budget and burden on the community. The following table summarizes the GHG reductions associated with each CAP strategy, along with the annual budget, excluding personnel costs, and percentage of the 2012 goal achieved. The energy efficiency strategies include both residential and commercial programs, Xcel Demand Side Management (DSM) reductions, and both residential and commercial codes (i. e. Green Points Program). The renewable energy section includes wind power purchases, rooftop PV, the expanded Colorado renewable energy standard (RES), and city-generated renewable energy. The transportation category includes reductions from biofuels; additional VMT reductions associated with potential TMP implementation are not included. These strategies are detailed in the corresponding sections of the memo. Because internal and external costs are not included in the table, the costs provided to do allow for an accurate cost per ton GHG comparison. Summary of Current and Pro osed CAP Pro ram Im act and Costs Current Pro osed Percent of Annual Current Annual Percent of mtCO2e Operating GHG mtCO2e Operating Current Strate b 2012 Bud et Goal b 2012 Bud et GHG Goal Energy Efficiency 29,049 $416,684 7 145,829 $834,641 36 Renewable Energy 172,366 $0 42 176,147 $0 43 Marketing 10,150 $155,000 2 20,300 $205,000 5 Transportation 3,940 $5,000 1 3,940 $5,000 1 TOTAL 215505 $576684 53°!0 346217 $1,044,641 $5% Staff time and marketing costs are the primary costs and are reflected in those categories. 11. The pie chart below illustrates the contributions of each strategy to achieve 85 percent of the city goal. Breakdown of GHG Reductions -Proposed Strategies Sh ortfa I I City Generation 15% 5% Energy Efficiency Transportation 36% 1 % ~ Marketing 5% Renewable Energy CO Renewable 16% Energy Standard 22% The following table summarizes the CAP tax rates and estimated revenue for the current level of CAP implementation and the enhanced implementation levels. When the Boulder voters approved the CAP tax, they approved minimum and maximum sector rates. Minimum rates are in use at this time. The CAP tax ordinance allows council to increase the rates up to the voter-approved maximums; an ordinance is required to adjust the rates. The proposed budget for more aggressive emissions reductions is $419,524 per year (a 47 percent increase) and would require increases in the residential and commercial rates to the approximate mid-point of their ranges. The industrial rate increase is less than 2 percent with the average annual cost increasing by $144. While the budget increase is not insubstantial, the city's programs generate economic benefits through energy cost savings and DSI~•I rebates. Summary of Current and Proposed CAP tax rates Current Rates 2009 Pro osed Rates Average Average Annual $IkWh Annual Cost $/kWh Cast Residential $ 0.0022 $ 13 $ 0.0034 $ 19 Commercial $ 0.0004 $ 45 $ 0.0007 $ 70 Industrial $ 0.0002 $ 5,532 $ 0.0002 $ 5,632 Estimated Revenue $ 897,114 $ 1,316,634 12. Council has several options for enhancing CAP implementation and the tax rates: • Council can adjust the rates right away so that programs can be expanded this year. • Rate changes and CAP enhancements can be initiated in January 2009. • Or council can leave the rates and program levels unchanged. Because there is heightened awareness and interest in energy and climate issues, new ideas and opportunities to more aggressively reduce GHG emissions surface on a regular basis. City Council mentioned an interest in being more aggressive at its 2008 retreat, and ideas like a solar farm were mentioned. Staff believes that a high level of flexibility and responsiveness are needed, while maintaining a focus on core CAP strategies that are in place to maximize results. The city must be prepared to evaluate and incorporate the impact of options like Smart Grid and Xcel's Resource Plan as they arise. The upcoming franchise agreement with Xcel presents obvious opportunities for innovation. Staff welcomes council suggestions for more aggressively pursuing the city's goals. Energy Efficiency Energy efficiency is the primary strategy for reducing emissions in the commercial, industrial and residential sectors. Energy efficiency provides a solid return on investment and makes lasting improvements to the comfort, reliability and marketability of Boulder's building stock. It also has the potential to create new jobs, strengthen the local energy services industry and increase direct and indirect sales tax revenue, thereby complementing the city's economic vitality efforts. Similarly, energy efficiency programs targeting lower-income households can often serve as social programs by lowering energy costs and the percentage of income spent on energy bills. There is also significant outside funding available, such as Xcel's rebates, to support energy efficiency. Meeting the CAP energy efficiency goals is heavily dependent on Xcel Energy programs and rebates. In 2006, Xcel launched new DSM programs that focus on commercial sector energy efficiency rebates to reduce electricity use. Residential programs have been limited to rebates associated with air conditioning and lighting. In late 2007, Xcel began offering commercial energy audits and proposed to approxirnately double their investment and energy use reduction targets for the DSM programs. Details have not been released, but rebates for natural gas efficiency and additional residential rebates are anticipated to begin in 2009. Rebates received by Boulder commercial customers since 2006 total $350,000 and provide nearly 7,000 tons of emissions reductions. It is important to note that while investments in energy efficiency often have quick paybacks and improve the comfort of existing buildings, market barriers exist that limit the installation of many efficiency measures. Market barriers include, but are not limited to, information and transaction costs, performance uncertainties, product or service unavailability, and split incentives. Split incentives exist in leased property where neither party is incentivized to invest in property improvements. In other words, though it very often makes financial sense to invest in energy efficiency, there are reasons and factors why people do not invest. The city's programs and services attempt to overcome these 13. market barriers and realize higher market implementation rates than otheiti~vise would have been achieved without the city's involvement. Other methods for addressing barriers include financial assistance, or incentives, and regulatory options. Combining these methods may improve public support while significantly enhancing energy performance and emissions reductions. Staff is evaluating financial assistance options, including direct incentives and low-interest loans for energy efficiency and renewable energy investments. The following are the specific energy efficiency programs of the CAP. Most programs and outreach use the CAP campaign name, ClimateSmart. ClimateSmart at Home As described in the CAP and 2007 Progress Report, a variety of programs and services are offered to address barriers and increase voluntary energy efficiency investment in existing residential and commercial buildings. The CAP proposed that about 58 percent of the annual budget be directed toward programs and services for the residential sector, which contributes 17 percent of community GHG emissions. Most of the budget is devoted to improving energy efficiency because Xcel's DSM programs for residents are limited to reducing energy use from air conditioners, incentivizing evaporative cooling, and converting to energy efficient light bulbs. The wide variety of programs that are currently offered by the city include reduced-cost energy audits, income-qualified weatherization services, neighborhood sweeps, whole house energy meter loan program, and contractor trainings. The residential program includes grassroots elements, where actions are promoted and implemented on a neighborhood or block-by-block level. The city is currently supporting organized neighborhoods and developing a plan for a recognition or competition program to be released in 2008. The current suite of residential sector energy efficiency programs will contribute about 4 percent of the city goal. These estimates are likely conservative. Staff will revisit the estimates later in 2008 when a full year's program results (2007) are available. To reach this level of reduction, the service levels will be increased each year. Last year, 224 home audits were completed and 450 audits are planned for 2008, with an estimated 300 audits being required under the new Green Points Program (based on historical permit information). Most of the residential strategies included in this analysis are currently in place with the exception of a few programs that are under development for implementation in 2008. One program, a refrigerator retirement and recycling service, is contingent upon securing funding through grants. Matching funds for many of these programs are awarded through various partners such as Boulder County and the Governor's Energy Office. In 2008, these funds equal over $165,000. Enhanced ClirnateSrnart atHorne Prog~arn Staff has completed analysis for expanding the current strategies and implementing new ideas that have the potential of reducing GHG emissions in the residential sector. Examples of program expansion include increasing the number of home energy audits 14. (454 in 2448, 744 in 2449) and installing energy efficiency improvements during the neighborhood sweeps and in multifamily residences. New programs include: • enhancing services that support implementation of audit recommendations; • funding the ongoing refrigerator retirement program (which provides guaranteed energy savings and emissions reductions); and • funding for programs that support market transformation and grassroots initiatives such as neighborhood programs, University of Colorado Green Teams and working with Boulder Green Building Guild to develop trainings and contractor networks. The proposed enhancements in the residential energy efficiency programs would provide a 92 percent increase in impact from the current level of implementation. This level of reduction would achieve about 7 percent of the total CAP GHG reduction goal. Increasing services to this proposed level would increase the CAP residential budget by approximately $383,444 in 2449 or 44 percent of the current CAP budget. Budget GHG Percent of 2012 Reductions Goal Current $261,684 15,341 4 Pro osed $644,641 26,409 7 Net Increase $382,957 11,068 3 ClimateSmart at Work Commercial buildings and industrial facilities represent the largest source of emissions at 58 percent of the community's total. Barriers to improving efficiency in commercial space include a lack of information on the most cost-effective improvements, knowledgeable contractors to perform the work, and information on rebates and incentives to reduce the upfront costs. The city has offered programs to reduce energy use in the commercial sector since 2444, primarily offering free energy audits and technical assistance. Other services include design assistance, bid evaluation and support of a trade ally network of contractors to improve the energy efficiency of commercial properties. The number of audits provided increased from 15 in 2446 to 42 in 2447, with a total of close to 84 commercial facilities served by the ClimateSmart at Work program. The main costs associated with the ClimateSmart at Work program are the costs of the energy assessments. In 2445-2447, the city covered the entire cost of the assessment program. In 2448, the city is partnering with Xcel Energy because Xcel is offering a to«~- cost energy assessment as one of its DSM programs. The Xcel audit is not as comprehensive as the city's assessment; it does not include assessments of natural gas use or renewable energy potential, and follow-up services are not included. The city's customized follow up and technical assistance is an essential service in maximizing implementation of audit recommendations. Businesses receiving an Xcel audit have an option to add on the city's services at no additional charge. The city is able to leverage 15. the Xcel audit contribution and provide more audits than planned. As mentioned earlier, Xcel DSh•7 rebates are critical to achieving a high level of energy efficiency improvement implementation, both in existing buildings and new' construction. Significant rebates are available and offerings will be expanded in 2009. Interest in most of the city's programs exceeded capacity in 2007, resulting in a waiting list for services in 2008. In addition, the annual target for energy savings measures installed in audited properties was met. The CAP assumed the expansion of programs and service levels depending on participation rates. Enhanced ClirnateSrnart at WorkProgra~r~ Staff proposes to: • increase the number of audits to 105 in 2009 (from 70 in 2008); • to expand the menu of follow-up services offered including rebate assistance, equipment efficiency analysis, bid evaluation, contractor recommendations, employee trainings/workshops, and tenant improvement design plan review; • free installation of LED exit signs; • launch a ClimateSmart recognition program; and • assist with "green teams" development within companies Staff estimates that the proposed services would achieve about four percent of the total CAP GHG reduction goal. Continued improvements in Xcel's DSM programs will increase the emissions reductions from the commercial and industrial sectors. Budget GHG Percent of 2012 Reductions Goal Current $155,000 9,486 2 Proposed $190,000 18,069 4 Net Increase $35,000 8,583 2 Demand Side Management Pro6rams and Financial Assistance Options The CAP assumed that Xcel's DSM programs and rebates would be integral to voluntary investment in energy efficiency. Xcel launched a suite of programs in 2006 that primarily targeted commercial and industrial users. The following table summarizes rebates received by Boulder commercial customers. 16. Xcel Rebate Program Year Number of kWh GHG Rebate Com leted Pro•ects reduction Reduction Amount 2006 29 2,295,970 2,120 $87,537 2007 40 3,202,302 2,957 $205,929 2008 15 1,948,521 1,799 $56,402 Total 84 7,446,793 6,876 $349,867 In 2047, Xcel submitted a proposal to nearly double the energy use reduction impact. The city is involved in the Public Utilities Commission proceedings for the proposal to support a high level of future investment and targets for DSM. If approved as proposed, expanded DSM offerings would be implemented in 2009 with new electricity use incentives, as well as rebates for reducing natural gas consumption. Staff has used Xcel and SEP estimates to project a GHG impact of 22,208 tons in 2012, representing 5.5 percent of the GHG target. This estimate may be overly conservative since the city's programs are designed to complement and maximize use of DSM programs and rebates across the community. By working with Xcel and promoting their rebate programs, we anticipate greater reductions. IVlany residential and commercial audit recipients report financial reasons for not improving the energy efficiency of their properties. Various financial assistance tools could be used, ranging from direct incentives to low-interest financing. The city could offer assistance after further study of the specific tools that are desired, the level of demand, and whether the resources are already available through existing avenues. Staff has yet to complete much research and analysis on financing options; although, it is a priority for 2008. If regulatory options are added for energy efficiency improvements and renewable energy systems, facilitating financing may be especially important to limit the burden associated with the requirements. City and County Financing Prograrr~ City staff has been involved in preliminary work to provide low-interest financing for energy efficiency improvements and renewable energy systems, in partnership with Boulder County and the city of Longmont. A t~'eekly Information Packet (WIP) on this financing model was submitted to City Council on Feb. 21, 2008 (can be found at www.bouldercolorado.gov/files?`City%20Council/WIPS/2008/02-21-08/2C.pdf). The concept is similar to the Berkeley program that has received a great deal of attention. The approach under consideration uses tax-exempt bond capacity to create a fund from which all residents and potentially businesses in Boulder, Longmont and unincorporated Boulder County would be eligible to receive a loan for energy efficiency or renewable energy projects that would be attached to the property and paid back through property tax assessments. The city of Boulder is legally allowed to offer loans for these purposes; although, the state and county are not. Legislation to create authority for Boulder County and the state was introduced in the first week of March (HB 08-1350). 17. If the bill passes, staff will return to council to discuss use of the city's private activity bond allocation ($4 million in 2008) for this purpose. To give a rough idea of what could be accomplished if $4 million in loans were available; approximately 500 $8,000 loans could be provided. This amount of money should be adequate for most energy efficiency improvements and the homeowner cost of a small PV system. If council decides to move forward then staff will initiate work on design and implementation of the loan process. If this approach does not work out for some reason, staff t~~ill continue to evaluate financing options with the CAP Advisory Group and present an assessment to council. Policy Options to Improve Ener~y Efficiency for New Construction 1. Expanded Residential Green Building Code 2. Development of a Commercial Green Building Code Questions 4. Far new construction, does council want to see a full scale commercial green building code, or an interim code that addresses energy? If a full scale program, does council want staff t© begin the process before the third quarter of 2008 The 200b International Energy Conservation Code (IECC) was adopted by the city on Oct. 30, 2007 (and became effective Jan. 2, 2008) and applies to both commercial and residential construction. Updates to the (Residential) Green Points Program were adopted on Nov. 13, 2007 (and became effective Feb. 1, 2008). The mandatory requirements of Green Points establish energy efficiency baselines above the 2006 IECC. City Council also increased energy performance of new residential construction and larger additions and remodeling projects through the amendments to the Green Points Program. While some outstanding issues remain, staff suggests evaluating the impact of the changes over the next six months or so and to return to council in the fall to discuss results and revisit the outstanding issues. Staff is also requesting council feedback on the establishment of a future energy efficiency goal beyond the 2012 established Kyoto targets relative to the residential green building program. In addition, at the Jan. 25, 2008 City Council Retreat, members identified enhancing the energy performance of new commercial construction in the short term, and designing a comprehensive commercial code by year end. Staff is working with the Consortium of Cities on development of model commercial green building code that is anticipated by the end of the year. In order to continue the evolution of the codes that influence energy efliciency, staff proposes the following approach for the development of energy efficiency guidelines for residential and commercial buildings. 2008 Updates to the Residential Green Points Program As mentioned previously, a revised Green Points Program became effective Feb. 1, 2008. The new ordinance identifies Green Building mandates and Green Points options as the two aspects of the program. For ne~~~ construction, the new residential program establishes energy efficiency baselines above the 2006 IECC and requires construction 18. waste recycling. Remodels and additions are required to have an energy audit and incorporate efficient lighting, plus deconstruction is required on remodels removing 54 percent or more of the exterior walls. The Green Points component remains similar to the prior program, requiring a specific amount of points, determined by project type and size, to be obtained by choosing green point options outlined in a menu of green practices, technologies and products in the Green Points Guideline Booklet. This update focused on more stringent requirements for new construction. Increasing requirements through building codes is an appropriate first step to reduce energy use and address other resource issues that are valued by the community. They also have proven results and a reasonable one-time cost. Y"et, the vast majority of the city's construction projects fall into the remodel and addition category. The housing stock is a much more difficult situation to remedy through building codes, as each project is different in size, scope and alteration. As part of the 2447 Green Points adoption process, council requested staff to do more research on remodel and addition thresholds that may be applied in an equitable manner to the majority of these construction projects. Staff will return to council this fall with case studies that demonstrate retrofitting energy efficiency measures into existing houses in Boulder, calculating costs per measure and associated energy savings. While substantial changes can be done at the local level, staff is careful to consider the impacts of future IECC code revisions. As mentioned, staff believes that a new requirement of 34 percent above code is reasonable for new commercial construction; however, careful attention should be paid to unintended consequences created as national codes continue to consider GHG implications through efficiency. The International Code Council (ICC) updates its codes every three years, and it is in mid-process in the 2449 International Energy Conservation Code (IECC) process. The final code hearings are set for this fall in Minneapolis before publishing the document for use in 2449. C}f the code changes proposed to date, none would result in substantial changes in the energy efficiency required. Most of the changes that have been proposed are to make the 2449 IECC more consistent with ASHRAE 94.1 2447. However, there is a strong movement through the Energy Efficiency Codes Coalition (EECC), a unique, broad-based alliance of energy efficiency advocates who have adopted and are working to boost the residential energy efficiency by at least 24 percent over current model energy codes. This initiative is also supported by l~layors who have signed onto the Mayors Climate Protection Agreement. This fall, IECC members (most commonly local governments being represented by their chief building officials) will gather in Minneapolis to debate and vote on 2449 IECC changes. The 24 percent or more increase in energy efficiency was developed to be adopted by the IECC members for the 2449 IECC. This raising of the "floor" could be difficult to achieve if coupled with additional above code local requirement. For example, if the new IECC changes result in a 24 percent increase for energy efficiency requirements, that when paired with a local requirement of 34 percent above code could result in a net 50 percent above code requirement from 19. today's standard. Staff will closely monitor any future code requirements and consider local implications. Commercial Green Code Development The development of a commercial counterpart to Green Points (for exceeding the 2006 IECC) was scheduled to begin the third quarter of 2008; however, if council is interested in accelerating the development of a green commercial code, staff asks that council provide staff with this feedback at the study session. With that said, staff from both the Office of Environmental Affairs and Planning and Development Services have stimulated conversation, interest and some research in the recent past with the development community on commercial green codes. More recently, city staff has joined efforts with the Consortium of Cities Energy Strategy Task Forces' Codes Committee. The consortium is organizing a prominent group of stakeholders of commercial building professionals and code officials to participate in a countywide process to develop a commercial green building code and/or recommendations. The group's goal is to meet once every three weeks and produce a regional commercial code recommendation by late fall. Staff is hoping to understand if it is council's desire to have a full scale green building code, similar to Green Points or LEED for commercial construction or just an increase in energy efficiency requirements above the standard energy code. Among the projects that are currently in the city's review process, staff has seen a 4-14 percent better than code energy performance on numerous projects. This is verified through ComCheck (U.S. Department of Energy's free commercial modeling software currently used for energy code compliance) documents for mixed-use types of projects. Research done by the Southi~-~est Energy Efficiency Project (SWEEP) (Attachment C ) reveals that across the country, state and local governments are pursuing commercial green building programs for new and substantially renovated building to exceed commercial energy codes by 30 percent or more. The professional consensus is that 30 percent above-code performance is the most cost-effective level for new commercial construction that contributes to effective energy savings and a reduction in associated GHG emissions. By focusing on best practices and increasing efficiency levels in the building envelope, mechanical systems, lighting and domestic hot water, a building's performance can achieve 30 percent above code. Policy Question: Increased Commercial Performance Requirements If council wants to increase performance requirements above 30 percent, such as 50 percent above code performance, the city will need to employ enhanced strategies such as advanced building design, controls, and on-site renewable energy would be necessary and would result in higher project costs. 20. Staff has been exploring options implemented in other jurisdictions. An example of Albuquerque's new commercial energy code is briefly described below to provide council with a snapshot of what other local governments are enacting. overview ofAlbuquerque Commercial Energ}%Requirements Cited by the Albuquerque ordinance, "The 2007 Albuquerque Energy Conservation Code is one element of the Mayor's effort to achieve the goals of the 2030 Challenge ensuring new buildings are carbon neutral by the year 2030." Albuquerque's code was adopted Sept. 25, 2007 and goes into effect April 1, 2008. The new code adopts and amends ASHRAE 90.1 - 2004, which creates standards and guidelines relating to HV AC (heating, ventilation and air conditioning) systems. These standards are typically referenced in most building codes and green building programs. Albuquerque's new conservation code is used in conjunction with ASHRAE 90.1 - 2004. As in Boulder's Green Points Program, this code also exempts LEED Silver certified buildings (4 energy points or greater) from the new standard. Additionally, designated historic buildings are exempted from the standard. Gf~ice and retail spaces of 20,000 square feet or less can use the prescriptive standard set in the energy code based on a detailed set of requirements for the envelope, HVAC, service water heater, lighting and power. However, buildings larger than 20,000 square feet are required to be designed to an ASHRAE 90.1 - 2004 standard that is at least 30 percent more efficient than standard. As the city of Albuquerque has similar GHG and environmental goals as Boulder, it plans to develop incentives through its Green Building Program to encourage building designs that will exceed the level set by the 2007 Albuquerque Energy Conservation Code. And, with guidance from its Cneen Ribbon Task Force, the 2007 Albuquerque Energy Conservation Code will be amended, at regular intervals, to keep pace with the new energy conservation technologies. Two Examples ofRecentBoulder Commercial Projects Employing Green Br,~ilding and Energy Ej~ciency Performance As a local comparison, staff has analyzed two recent projects to determine how a new energy efficiency standard could be applied. Both of these commercial projects utilized green building design, and energy efficiency performance was calculated using ComCheck. The newly remodeled Boulder REI store incorporated passive solar design and active solar technologies resulting in a 20 percent increase in energy efficiency above code. Photovoltaic (PV solar water heating and day lighting have all been successfully used. Water fixtures were selected that use 30 percent less water than standard fixtures and many environmentally preferable products were used in this project. 21. In addition, the new mixed-use 1155 Canyon building pursued a LEED Core and Shell certification with highlighted features such as passive solar design and solar hot water and PV systems, efficient mechanical equipment with pollution reductions, occupancy sensors, low-E glass and white roof membrane. Water efficiency, sustainable product choices and local and regional materials, construction waste recycling and indoor air quality and pollution control efforts. This project achieved at least a 14 percent energy performance above code with just under 10 percent contribution fiom on-site renewable energy. Staff Recommendation: Staff recommends new resources be allocated to this effort to educate, provide technical assistance and guidance in receiving Xcel rebates for increasing building performances. Relative to Green Building several potential initiatives have been identified to date (see Attachment C) and staff would like council to help prioritize these initiatives in order to best leverage partnership opportunities and city resources. Policy Options to Improve Enemy Efficiency - Existing Buildings Questions 3. Would council like staff to proceed with further evaluation of regulatory options to improve energy efficiency in existing residential buildings? For commercial buildings? Because the current approach of facilitating voluntary investment in efficiency may not provide desired emissions reductions levels, regulatory policy approaches may be necessary. The CAP outlined several potential regulatory options, however, at the time the plan was adopted council did not approve a regulatory approach to require energy efficiency for existing buildings. Options described in the CAP included requiring annual energy use disclosure to tenants during the leasing process, requiring energy assessments and providing a report to prospective tenants, and requiring specific energy performance enhancing measures be installed in a property over time. Each of the options has pros and cons with the first two options serving as largely educational or awareness building tools. The third option that is in place in several similar communities similar to Boulder is a residential energy conservation ordinance or RECO. Because fewer utility incentives are available to the residential sector, a regulatory approach - likely complemented with financial assistance - may be desirable. A summary of available RECO information is provided below. Staff Recommendation: Staff recommends that the city evaluate the benefits and impacts of local implementation of this type of ordinance. A RECO is a policy tool for upgrading the energy efficiency and water usage of existing housing. RECOs require building owners (landlords and/or homeowners) to implement specific, prescriptive energy and water efficiency measures if their property doesn't meet 22. a minimum standard. Some communities are exploring using energy performance based requirements in addition to or as an alternative to prescriptive requirements. RECOs are especially relevant in the rental property sector, where there exists a disincentive for landlords to incur the costs of efficiency improvements when they do not directly reap the benefits. These properties are often the ones with the greatest need of upgrades. In addition, a RECD offers an avenue for addressing the rental and multifamily housing sectors and can offer benefits to the lower-income portion of the community, providing a crucial equity component in the broader city's energy and GHG offerings. Typically, RECOs take effect either when the property changes hands (time of sale) or during the rental license inspection and renewal process. Another possibility would be to establish a date when all properties must reach the minimum standard. The date could be several years in the future to phase in compliance. In developing a RECD for Boulder, the city should balance factors such as how to realize maximum energy efficiency, how to minimize the cost and administrative burden on the city, and how to minimize inconvenience and cost to the building owners. The cost to the city of a RECD program relates to administration; although, these costs are typically recovered through an inspection fee borne by the property owner. The cost of the required improvements that would be borne by the property owner varies depending on the existing condition of the building, but average costs in other programs range from $650-$1,000 to comply with the ordinance. This cost would be in addition to the cost of the inspection, also borne by the property owner. Many RECOs institute a maximum limit to the expenditures by the property owner. Energy savings would likely be on the order of 10-20 percent per building, depending on the stringency of the standards. The city may consider offering incentives to early adopters. Energy education for tenants would also enhance effectiveness. Since RECOs are usually enforced when a property changes tenants or owners, it is difficult to measure actual energy savings since energy use can vary greatly by occupant. Berkeley, CA, has not attributed energy savings directly to the RECO it has implemented, but it has recorded 13 percent energy savings in the residential sector from 2000-2005. Initial analysis by staff estimates that by initiating a RECD in 2009, applied to all housing - rental and owner-occupied -GHG reductions would equal 29,772 intCO2e by 2012. This lej~el of GHG reductions represents 9 percent of current residential energy consumption. Implementing a RECO in Boulder could provide economic, social and environmental benefits. The political and financial barriers may be addressed by phasing in the required measures over time and offering financial assistance through rebates and low-interest financing. Suggested Process: Staff suggests a public dialogue/process with homeowners and rental property owners to get their input on benefits and impacts from a local RECO and to examine how best to structure a RECD program for Boulder. Specific issues to be addressed include the trigger for compliance, required efficiency measures, compliance process, educational needs, and preferred incentives. 23. Policy tools to address commercial energy use, especially in existing and leased property ~~-ere mentioned above. An energy use disclosure requirement or energy rating at the time of lease could complement CAP and Xcel Energy programs and begin to shift existing commercial space toward more sustainable energy consumption. Staff proposes evaluating the impact and effort required to implement these options. Staff is also investigating the possibility of establishing a set of commercial codes for existing commercial buildings. While commercial codes for existing buildings are not common for cities, staff believes this could be a viable option to improve the energy efficiency of existing buildings. One option that was recently implemented in San Francisco is a code to improve the efficiency of commercial lighting by eliminating the use of T-12 fluorescent lights and requiring the replacement with T-8 lights. This option was analyzed for its potential in Boulder County's SEP, and the estimated GHG emissions reductions, scaled for the city of Boulder, would be approximately 23,831 tons or six percent of the GHG goal. GHG Reductions Percent of 2012 Goal Green Paints -Current 4,222 1 RECO -Proposed 29,772 7 Net Increase 25,550 6 Cammercial Codes Existing 23,831 6 Buildin s -Pro osed Cammercial Codes New 21,319 5 Construction -Pro osed * Net Increase 45,150 11 *SEP -Countywide estimates scaled for the city of Boulder Transportation -Climate Action Connection The CAP outlines three overarching strategies to reduce transportation-related GHG; reduce vehicle use, increase the use of biofuels and increase the fuel economy of vehicles in Boulder. Vehicle Use Vehicle use, or vehicle miles of travel (VMT) is addressed through impletnentation of the Transportation Master Plan (T1VIP). Reducing VMT requires that adequate infastructure is in place for people to use other modes with corresponding education on how to use the infrastructure and reduce vehicle use. The city's success at managing V11~IT growth has helped in the management of GHG emissions growth from this sector. Estimates suggest that implementing the TMP at the Action funding level would achieve two percent of the total GHG reductions needed by 2412 and the Vision funding level would and achieve 24. nine percent of the city's GHG goal. The topic is discussed in more detail under the Mobile Source Contribution section. Biofuels There is a national debate taking place over ethanol that covers a broad range of economic, social, political and environmental issues. It is not likely that this debate will be decided in the near future. The city could allow ethanol to slowly expand into our community through ambient market forces. The city could also begin to actively promote E85 (85 percent ethanol and 15 percent gasoline) infrastructure and compatible vehicles. The city runs the risk of being put in the intractable position of promoting a fuel that has questionable sustainability characteristics. The city also has the opportunity to help create a market for future biofuels technologies, that could provide a realistic alternative to petroleum fuels and improve public perception of even less carbon-intensive alternative fuels as they are developed and deployed. The nearest E85 fueling station is located in Gunbarrel. Staff has visited in-person approximately 75 percent of the retail gas stations in Boulder to encourage the installation of E85 pumps. One privately-owned station had committed to installing an E85 and biodiesel tank, but their grant funding was too slow to arrive. Private gas station owners are averse to taking the financial risk, even with substantial state and federal incentives. Corporately-owned stations have been unresponsive to phone calls and personal visits. The city could add additional incentives by reducing permit fees and taxes for installing E85 fueling capacity. Currently, there are several thousand E85 compatible vehicles in Boulder, accounting for less than one percent of the vehicle fleet. Conversations with auto dealerships reveal that E85 compatibility is not a signif°icant buying motive. The few customers specifically seeking E85 compatible vehicles are typically driven by political or nationalistic motives but seldom environmental. In 2448, eight percent of domestically produced automobiles will be E85 compatible. These vehicles are expected to penetrate the Boulder market. With proper infrastructure, E85 is projected to account for less than one percent of the city's GHG goal. Biodiesel is available at publicly accessible pumps in Boulder and approximately 1,544 diesel vehicles are registered in Boulder. Increasing the population of diesel vehicles could increase the use of biodiesel; however, com~ersations with dealerships revealed that the vast majority of customers seeking a diesel vehicle do so for fuel economy or torque, not biodiesel compatibility. It is projected that if all the diesel vehicles in Boulder use biodiesel, it would account for less than one percent of the total GHG reductions needed by 2012. Increasing the use of biofuels requires athree-pronged strategy. One prong is to increase the infrastructure for biofuels, another is to increase the population of vehicles that can operate on biofuels and the third is to educate the owners ofthose vehicles. 25. Staff will continue to evaluate the sustainability of biofuels, to ~~~ork with local retailers to offer fuels and to educate the community about the benefits of biofuels as an alternative to petroleum based fuels. No enhancements are proposed for the CAP biofuels programs. Vehicle Efficiency Without federal fuel efficiency mandates, the ability to increase the fuel economy of vehicles in Boulder is dependant on the frequency of vehicle purchases and the willingness of residents to change their perception of what they need in a car. Local car dealerships have been interviewed to determine buying motives. It was found that it is difficult to change perceptions at the dealership. When a customer arrives at the auto dealership, they know what they want in a vehicle. The education has to take place while the customer is forming their idea of what their needs are. Therefore, education on how the fuel economy of a vehicle will affect its owner's carbon footprint is infused into our outreach messaging. Staff will continue to work with local dealerships to educate the community about the importance of vehicle efficiency to reduce GHG emissions. No enhancements are proposed for the CAP transportation emissions programs. Other Tiansportation/GHG Options There are several other options for reducing transportation emissions that would contribute to reducing transportation emissions. Clean Cars Standard There are several policy options that could change vehicle fuel economy and use of biofuels. Colorado is one of 14 states to propose enactment of a Clean Car Standard modeled after California's program. Currently, California is pursuing legal action against the Environmental Protection Agency to enact the standard. If a waiver is granted, other states will be able to adopt the program. Fuel cost savings due to the fuel economy increase associated with this program are projected to exceed any added vehicle costs and would achieve approximately six percent of the city's GHG goal. Tlehicle Registration Fees Linked to Efficiency - Feebate Boulder County has proposed, as part of the SEP, a vehicle registration system that rewards ownership of high fuel-efficient vehicles. The general approach involves setting registration fees to correspond to fuel efficiency; a higher fee for poor fuel-efficiency vehicles and lower or no fee for high fuel-efficiency vehicles. The county would be responsible for administration; although, the city may want to provide additional marketing and education about the link between fuel economy and GHG emissions. A local feebate is estimated to achieve approximately six percent of the total GHG reductions needed by 2012. Emerging Technologies There are emerging vehicle technologies which are expected to penetrate the marketplace in the next five years. Plug-in hybrid electric vehicle (PHEV) technology is gaining footing and is in the spotlight as utility providers work to meet peak energy demand in an 26. environment where ne~~~ po«-~er plants are being blocked. This vehicle-to-grid (V2G) technology allows the vehicle's battery to store off-peak po«~er and provide peak-shaving when demand exceeds power supply. V2G technology requires a sophisticated power supply such as Smart Grid. Supporting V2G technology in Boulder is expected to provide up to five percent of the GHG goal. Additional CAP tax funding is not proposed for the CAP transportation options; although, additional staff resources and potentially additional budget may be needed to maximize the emissions reduction opportunity presented by the options described above. Budget GHG Percent of 2012 Reductions Goal b 2012 CAP Current $5,000 3,940 1 CAP Proposed $5,000 3,940 1 TMP -Action $104 M 10,000 2 TMP -Vision $281 M 36,900 9 Clean Cars $10,000 24,563 6 Standard* PHEVN2G* $70,000 18,531 5 Feebate* $20,000 25,839 6 * SEP -Countywide estimates scaled for city of Boulder Mobile Source Contribution Vehicle transportation is the second largest sector contributing to Boulder's GHG emissions. The Transportation sector produced 22 percent of tota1200& emissions, totaling 442,895 mtCC?2e. The emissions estimates are based on vehicle miles of travel (VMT) in the Boulder Valley planning area. The initial CAP objective for GHG emission reductions in the transportation sector is a reduction of 40,000 mtC~2e. If possible, staff would like to increase the reduction target for this sector. Primary strategies for achieving this reduction are: * Reduce V1VIT • Improve fuel economy • Use lower carbon fuels Implementing the TMP Action Plan would achieve approximately a quarter of the sector's GHG emissions reduction objective by reducing expected vehicle miles of travel (VMT) by 3 percent from 2001 over the Current Funding investment program. The CAP notes that the VMT reduction expected fiom implementing the Vision program of the TMP would achieve more than 90 percent of the GHG emissions reduction for the transportation sector and 9 percent of the total GHG goal. The remaining GHG emission reductions would come from fleet efficiency increases and the increased use of alternative fuels. While the expected VMT reductions are relatively 27. small, it is important to note that the CAP is heavily dependent on continuing the policy direction of the TMP. This policy direction has helped control the grot~vth in city VMT, relative to the broader trends of the region and nation. Transpot~tation Initiatives - rernove~l fot~ EAB CAP Renewable Energy Strategies As noted above, energy efficiency is the most cost-effective method for achieving emissions reductions. However, it would require significant and likely unrealistic amounts of public and private capital to achieve the city's goal through energy efficiency alone. As a result, renewable energy will have an important role in working toward the goal. The city receives approximately seven percent of its electricity from renewables. Boulder's residents and businesses have the following four renewable energy options: • Xcel Energy's Windsource Program • Renewable Energy Credits (RECs) • Install onsite renewable energy system • Contribute to emissions offset funds The primary CAP strategies for increasing renewable energy use involve removing barriers to voluntary investment rather than city investment in renewable energy. The strategies include providing information on how to purchase or install renewable energy and available rebates, promote renewable energy installers, provide recognition for renewable energy use, hold or co-sponsor workshops to educate property owners about solar, and develop a solar mapping resource for city or general public use. The CAP assumed that providing a high level of renewable energy for the community would be addressed through the city's franchise with Xcel Energy or municipalization of the electric utility. The CAP assumed that the amount of renewable energy purchased through Windsource or RECs will increase each year. Annual Wind Challenge events are designed to increase awareness and use of this simple option for using renewable energy. This year's Wind Challenge goal is to sign up 1,444 new subscribers. As noted earlier, the CAP proposed a purchase of RECs in 2412 and beyond to meet the city's GHG goal. City Council decided to remove this option from the CAP strategies when developing the CAP tax and asked for more aggressive implementation of the CAP. The Colorado Renewable Energy Standard requires large utilities to reach increasing renewable energy targets over time. Through the RES, Xcel Energy will invest in solar and wind power, and also provide sizable rebates for installing solar electric or PV. The presence of these rebates and a federal tax incentive has resulted in tremendous interest in PV systems and expansion in the solar services market. The amount of PV permitted in Boulder in 2447 was 1,148 kilowatts (kW). The installation of this quantity of PV panels will reduce emissions by more than 1,492 mtC(~2 annually. If an equal quantity was 28. installed in Boulder each year through 2012, approximately 2 percent of the city's current total GHG emissions reduction goal would be met. In 2006, City Council decided to direct a portion of the sales and use tax paid on solar systems to a renewable energy fund. Some of the funds are available for a sales and use tax rebate to support increased solar system installation. The majority of the fund is dedicated for the purpose of providing financial assistance through grants toward installation of PV or solar thermal (hot water) systems on housing for low- to rnoderate- income persons and on the facilities of site-based non-profit entities operating in Boulder. The grant portion of the renewable energy fund, called the ClimateSmart Solar Grant, intends to fund a number of projects which will provide education about solar technologies in the community, install systems that will benefit recipients through lower energy costs, and provide visibility and education about the city's rene«~able energy fund and renewable energy goals. Staff has developed a process, grant application and selection committee for awarding ClimateSmart Solar Grant funds to qualified organizations or individuals in the community. The grant will have two cycles each year, IVlarch 15 and Aug. 15. The application was released to the public in the beginning of 2048. At the time of release, approximately $55,000 was available in the grant fund. The first grants from this program will be awarded on May 1, 2008. The following table summarizes current estimates of GHG reductions from renewable energy. A budget column is not included in this table because the Wind Challenge budget is included in the CAP marketing budget. GHG Reductions Percent of b 2012 2012 Goal Wind Power -Current Wind Challen e 49,842 12 Wind Power -Proposed Wind Challen a 53,623 13 Roofto PV 10,379 3 Colorado Renewable Energy Standard 90,283 22 City Generated (RECs from hydroelectric and co eneration facilities 21,862 5 Total with ro osed wind ower 176,147 43 CAP Marketing A key strategy of the CAP is effective marketing of programs and initiatives to inspire voluntary behavior change and investment to reduce emissions. Fundamental to this 29. effort is the ability to link personal actions, such as driving and home energy use, to climate change and energy sustainability. The goal is to make this link ubiquitous and sustained in the Boulder community, such that there is a constant reminder that climate action is in large part the responsibility of individuals through their behaviors and purchase decisions. Robust and sustained marketing, education and outreach programs are necessary to create a~~~areness of the community-wide challenge and to garner widespread support and action. Marketing strategies are included for all CAP programs. Official marketing efforts began in Apri12007 when the Marketing and Communications Coordinator funded with the CAP tax was hired. A strategic marketing plan was created to identify short-term and long-term needs and priorities; the plan is updated twice each year or as needed. The three main marketing goals for 2007 were campaign branding, program marketing and communications, and community outreach. Between April and August 2007, staff worked with Vermilion, a local communications firm, to execute campaign branding. ClimateSmart (also the name of the November 2006 ballot measure campaign) was selected as the campaign name, and a color palette and logo were designed. The new branding paved the way for development of the ClimateSmart Web site, program brochures, local print and bus ads, radio and other communications initiatives. Additional communications tools developed were a monthly e-newsletter (The Changing Tit~nes) and a bi-monthly ClimateSmart Q&A column in the Catne~a. The ClimateSmart brand and programs are intended to symbolize the city of Boulder's response to climate change. Awareness of available programs facilitates residents' and businesses' ability to reduce GHCT emissions. The city of Boulder has embraced Boulder County's participation in ClimateSmart and has worked to develop a regional collaboration through the Consortium of Cities. As of late 2007, six municipalities have expressed interest in using the ClimateSmart brand to market their own local energy sustainability initiatives. Several CAP programs are available in other communities and unincorporated Boulder County. The county committed funds in 2007 and 2008 for ClimateSmart administrative and implementation costs, and municipalities will pay for their own printing and media costs in 2008. The ClimateSmart Web site was launched in September 2007. As of December, the most visited Web pages were the carbon footprint calculator and online pledge (to reduce carbon footprint). The calculator, which allows residents to calculate their annual carbon dioxide (C02) emissions based on travel habits and home energy and water use, has been used ley over 800 people. The calculator tool will be continually updated to improve usability and appeal. The ClimateSmart online pledge page allows businesses or individuals to make a `public' commitment by signing up to reduce their carbon footprint. A "Who's In" page lists those that have pledged and a map shows a green pin at the participants' address. Approximately 500 individuals and businesses had pledged by the end of 2007. 30. Community outreach was focused on presentations to civic and business groups (22 presentations to 600 people), a farmer's market display July-September, and financial and technical support to two grassroots neighborhood climate action groups. Outreach priorities include broad community engagement, neighborhood support and recognition programs. Community engagement Widespread success in reducing greenhouse gas emissions in Boulder will depend on the viral aspect of the ClimateSmart message-friends telling friends, kids encouraging parents, company o~~-ners supporting action among their employees (and vice versa), and businesses telling other businesses how they benefited from ClimateSmart programs. Neighborhood support ClimateSmart staff currently plays a support role to two neighborhood climate action groups in Boulder. In 2008, staff hopes to see up to five neighborhoods organize and will support them with modest printing budgets, presentations at meetings, free prizes, ideas, and press coverage. Staff will evaluate efforts over time to ensure that the needs of the community are being met and that the efforts are facilitating results. Recognition programs Developing meaningful ways for local businesses and homeowners to be recognized for their efforts will be important in supporting the view that combined, sustained, community-wide efforts can add up to significant GHG reductions. In 2008 staff will solidify a commercial recognition program that will provide free publicity (and other benefits) to companies displaying a commitment to energy sustainability. A neighborhood recognition program will be developed to recognize currently active groups for their efforts; the program will also inspire others to take action. Recommended strategies, goals and tactics to enhance marketing and outreach initiatives in 2008 and beyond include the following: 1. Identify population sectors most likely to im~est in efficiency and renewables; focus creative and effective outreach plans and additional resources on these sectors. 2. Regular press promotion of ClimateSmart-funded community initiatives (i.e. Home Energy Makeover, Sweep, Solar Grant Fund PV installations, grassroots activities). 3. Increase community advertising reach (purchase additional radio, theater screen, bus, and print ads). 4. Increase participation in commercial and residential programs. 5. Develop a more diffuse education strategy to promote availability of tax credits and incentives to investors in efficiency. 6. Maximize electronic communications methods (Web site and email communications). 31. While it is difficult to estimate emissions reductions associated with marketing, education and outreach efforts, a robust program is important to frilly engage the community to successfully work toward the city's GHG goal and a sustainable energy future. Staff has estimated that the current investment in ClimateSmart marketing and outreach will achieve 2.5 percent of the 2012 goal and that the enhanced efforts will double the impact to 5 percent of the 2012 goal. Budget GHG Percent of Reductions 2012 Goal b 2012 Current $155, 000 10,150 2.5 Pro osed $205,000 20,300 5 Net Increase $50,000 10,150 2.5 CAP Summary Questions 7. Does council have any questions or comments about enhancing CAP programs and services, and the associated tax increase? The following information was provided at the beginning of the Opportunities Analysis section as is repeated here to provide a summary of the cost and impact of enhancing the CAP. The next table summarizes the GHG reductions associated with each CAP strategy, along with the annual budget, excluding personnel costs, and percentage of the 2012 goal achieved. The energy efficiency strategies include both residential and commercial programs, Xcel DSM reductions, and both residential and commercial codes (i.e. Green Points Program). The renewable energy section includes wind power purchases, rooftop PV, the expanded Colorado renewable energy standard (RES), and city-generated renewable energy. The transportation category includes reductions from biofuels; additional VMT reductions associated with potential TMP implementation are not included. The cost summaries are not designed for an accurate cost per ton GHG comparison among the strategies. 32. Summary of Current and Pro osed CAP Pro ram Im act and Costs Current Pro osed Percent of Annual Current Annual Percent of mtCO2e Operating GHG mtCO2e Operating Current Strate b 2012 Bud et Goal b 2012 Bud et GHG Goal Ener Efficienc 29,049 $416,684 7 145,829 $834,641 36 Renewable Ener 172,366 $0 42 176,147 $0 43 Marketin 10,150 $155,000 2 20,300 $205,000 5 Trans ortation 3,940 $5,000 1 3,940 $5,000 1 TOTAL 215,505 $576,684 53% 346,217 $1,044,641 85% * Staff time and marketing costs are the primary costs and are reflected in those categories. The following table summarizes the CAP tax rates and estimated revenue for the current level of CAP implementation and the enhanced implementation levels. When the Boulder voters approved the CAP tax, they approved minimum and maximum sector rates. Minimum rates are in use at this time. The CAP tax ordinance allows council to increase the rates up to the voter-approved maximums; an ordinance is required to adjust the rates. The proposed budget for more aggressive emissions reductions is $419,524 per year (a 47 percent increase) and would require increases in the residential and commercial rates to the approximate mid-point of their ranges. The industrial rate increase is less than 2 percent with the average annual cost increasing by $100. While the budget increase is not insubstantial, the city's programs generate economic benefits through energy cost savings and DSM rebates. Summary of Current and Proposed CAP tax rates Current Rates 2009 Proposed Rates Average Average Annual $IkWh Annual Cost $/kWh Cost Residential $ 0.0022 $ 13 $ 0.0034 $ 19 Commercial $ 0.0004 $ 45 $ 0.0007 $ 70 Industrial $ 0.0002 $ 5,532 $ 0.0002 $ 5,632 Estimated Revenue $ 897,114 $ 1,316,634 Council has several options for enhancing CAP implementation and the tax rates: • Council can adjust the rates right away so that programs can be expanded this year; • Rate changes and CAP enhancements can be initiated in January 2009; or • Council can leave the rates and program levels unchanged. 33. City Operations and Renewable Energy Strategy The city organization is committed to working towards a healthier environment. In addition to helping the community reduce GHG emissions, it is also critical that the city look at its own operations to ensure that it serves as a model for the community. The sharp rise in electricity and fuel prices continues to strain already limited city budgets creating an additional incentive and benefit to reducing emissions. The CAP proposed that the city establish a target of reducing electricity use and natural gas use by 20 percent and 10 percent, respectively, and also suggested a renewable energy goal of 20 percent, all from current levels by 2012. Further, the CAP assumed that investments in energy efficiency would be made from departmental budgets, rather than the CAP budget, and that the renewable energy goal could be met by increasing purchases of Windsource or RECs, paid from the CAP budget. ~A~hile always considered part of the CAP strategy for city operations, renewable energy options have become increasingly critical as the city's cost for energy continues to rise. Further, the city manager has committed to moving the city organization towards energy independence in the next 10 years. This will only be accomplished through the integration of renewable energy sources, which are discussed in greater detail on the next page. Energy Efficiency The Facilities and Asset 1Vlanagement Division (FAM) is continuously evaluating strategies such as conservation, energy efficiency and alternative energy to meet the energy needs of the city organization at the lowest possible cost. It is FAM's general policy to complete energy-saving projects that have at least afive-year payback period. The city has been engaged in energy reduction initiatives for over 15 years. Over the past 10 years, the city has completed 114 projects and spent approximately $3 million on equipment that improved the efficiency of the city's buildings. In 2007, FAM completed almost $90,000 worth of energy efficiency improvements in city facilities. These improvements included efficient windows, replacement of heating, ventilation and air conditioning (HVAC) units, and increased insulation in city buildings. FAM actively pursues methods to reduce energy costs as many departments have difficulty managing increased energy costs. Staff is evaluating the creation of an interdepartmental energy strategy team to help guide the city towards the goal of reducing GHG emissions and managing energy use and costs in city facilities. The team will also help engage all departments in city energy management. The team will be responsible for developing an energy management plan to meet the city manager's energy independence and renewable energy goals. Renewable Energy Strategy for City Operations Questions 1. Does council have questions or comments about the draft renewable energy strategy to achieve energy independence for the city organization? 34. As mentioned previously, there is a strong interest in incorporating additional renewable energy options in order to move to eventual energy independence for the city organization. To determine the most effective path, it is critical to first discuss why and how renewable energy sources should be incorporated. Fossil fuels have played a pivotal role in the evolution of the city of Boulder- but are also the root cause of many of the most dire problems we face. Not only does the city's current energy use affect the ability to mitigate emissions related to climate change, but the city `s Blue Ribbon Commission on Revenue Stabilization identified facility energy costs as a critical deficiency that adds to a growing gap between revenue and expenditures. While many municipalities are working to address this instability by offsetting utility consumption through renewables, very few have committed to actual investment strategies. Traditional energy sources, like coal, oil and natural gas currently provide over 95 percent of the energy the city organization uses. The city of Boulder currently uses 3 percent renewable energy in its municipal operations. Renewable energy comes from sources that can be replenished in a short period of time like solar, wind, biomass or hydroelectric. There are a number of advantages to using renewable energy sources: • Energy costs for Boulder's municipal operations have risen in the last four years from $ 1.5 million in FY44 to $2.2 million in FY07; a 19 percent increase. When taken alone, electricity costs have more than doubled from $703,955 in 2004 to $1.6 million in 2407; a 56 percent increase. Renewable energy sources like wind and solar offer the ability to enter into long-term fixed-rate contracts to help stabilize future municipal energy costs. • Money spent on renewable energy sources often stays in the local economy. • Renewable energy sources produce less air pollution than fossil fuel based energy and contribute to making our air cleaner and meeting EPA clean air standards. • Renewable energy sources greatly reduce global warming emissions. • Increasing reliance on foreign oil threatens our national security and economy. • Renewable fuels reduce our reliance on imported oil. Staff has been exploring available technologies for energy efficiency and renewable energy use in municipal operations in order to increase the city's use of renewable energy sources. The purpose of this evolution is twofold: to minimize the instability of rising energy costs and to minimize the city organization's greenhouse gas emissions. At the 2008 City Council retreat, the city manager declared his intention to move the organization towards future energy independence, and further set a course to have the city organization, equipment and facilities become 100 percent energy independent over the next 14 years. This will also result in a significant increase in the Boulder community's overall renewable portfolio over the next 10 years (including negotiating maximum capacity for renewable sources within the Xcel Franchise Agreement and potentially locating a renewable facility within the city). 35. In order to reach a goal of 100 percent renewable energy for all municipal operations ley 2018 with an associated reduction in community GHG, staff has been evaluating options to purchase or produce long-term, fixed-rate "green" electricity from various renewable sources such as facility based, or "on-site," renewables like solar PV or wind power constructed in Colorado. The purpose of this section of the study session packet is to familiarize council with the technological options, financing abilities and viability of various renewable energy options. The full draft renewable strategy is included as Attachment D. The Plan in Brief A dramatic shift away from fossil fuels can only happen if the city actively pursues the following strategies: Energy efficiency and conservation: The city must aggressively increase its energy efficiency by 30-50 percent in buildings, which constitutes the majority of current and projected energy demand. Energy replacement options: The city will need to produce and purchase large amounts of renewable electricity such as solar and wind in or near our region. Staff has developed a strategy that creates a diverse portfolio of renewable power sources for the city organization. Next generation vehicles: With the implementation of the Smart Grid technology, the city can transition to more efficient vehicles and vehicle fuels, such as plug-in hybrid vehicles, electric-only vehicles and vehicle-to-grid technology, and potentially, hydrogen-fuel-cell or hydrogen-internal-combustion engine vehicles, once they are more readily available and affordable in three to five years. Staff will continue to evaluate and also consider any other technologies and partnerships to help reach established renewable energy goals. The plan is awide-ranging collaboration?, including the collaboration of various entities such as the Governor's Energy Office (GEC), major renewable energy research institutions, Boulder County, CLT, and numerous not- for-profit organizations. Financial Analysis What will it cost? This is probably the most important question in this strategy. There are, of course, many different ways of measuring cost. Right now, we pay for our fossil fuels, not just in dollars paid for our utility bills, but in the air we breathe and the water we drink, in our national security and, most importantly, in our ability to sustain ourselves on this planet. The good news is, however, that even when you exclude these other costs and 36. consider only traditional economics, the city will actually be in much better financial shape by adopting renewable technologies than continuing to burn fossil fuels. A renewable strategy for the city is organized to highlight the most cost-effective solutions first, starting with energy efficiency in buildings, then the lowest cost per watt renewable options last, such as wind power and solar pow-er. As the demand for fossil fuels from developing nations increases, fossil fuel supplies diminish and the costs continue to rise. It is necessary to reduce our reliance on fossil fuels and begin a transition to renewable energy sources. Staff's analysis found that the city of Boulder will in fact save substantially by switching to renewable energy. Due to projections from Xcel Energy, fossil fuel prices in our region and elsewhere will continue to trend upward at a rate of 4 - 7 percent annually. Energy efficiency and renewable energy could potentially save the city $15.4 million by 20201. So the city could make a strong argument to make the renewable switch purely on economic reasons. In tackling the ambitious goal of weaning our city from fossil fuels, we first need to recognize the magnitude of the task. In 2006 for example, the city used 26.4 million kWh (or 26,000 MWh) of electricity and 726,679 therms of natural gas (see Fig.). Figure X: City of Boulder Energy Use 1998 1999 2000 2001 2003 2004 2005 2006 kWh 27,810,662 25,174,357 28,542,567 31,310,888 25,088,913 29,264,861 25,905,343 26,467,078 Therms 702,634 671,696 684,031 666,857 763,573 567,391 784,809 746,679 As can be seen by the above figures, in order to replace 100 percent of the city's annual consumption, the city will need to install or purchase approximately 18 MW of power.2 The following statistics on city energy use suggests a number of measures that, if implemented, could lead to 100 percent energy replacement or independence by 2018. In order to make appropriate decisions on a future strategy, the following resource evaluation is presented. While many utilities offer their customers green energy from one or two sources, the city should strongly implement diversification and the creation of a Renewable Portfolio that properly evaluates all reliability, cost and market issues to ensure an effective implementation. For example, a biomass renewable project has the potential 1 Savings assumes 7 percent annual growth on both electricity and natural gas costs. Savings was also determined assuming leveling of costs in 2008 through efficiency and renewable projects resulting in a 0 percent growth. z The estimate of 181~~1W assumes replacement of city electricity consumption, excluding natural gas and vehicle fuel. 37. to offer a steady supply of renewable energy 24 hours a day, during peak conditions. Biomass projects offer greater system reliability benefits than other intermittent rene~~~able resources. However, adequate and reliable fuel supply sources are the single most critical factor in determining the economic viability of a potential biomass project, and associated price risks may prohibit such projects from being developed. The result may be an overdependence on any one renewable source, contrary to the goal to increase supply diversity. The city should maintain its current flexibility in the purchase and development of its renewable resources. As mentioned earlier, due to the higher cost nature of renewable projects, it is necessary to consider longer-term contracts to finance projects going forward. Energy casts for the city orga~i~ation Rather than wait until the city is negatively impacted by anticipated rising energy costs, this strategy allows the city to take steps now to manage energy costs and identify actions that will reduce energy use. Staff undertook a utility bill analysis to determine how the city is spending energy dollars. Based on the analysis, the city's energy costs have seen a dramatic increase over the past several years. As mentioned earlier, staffs analysis found projections from Xcel Energy show fossil fuel prices in our region and elsewhere will continue to trend upward at a rate of 4 - 7 percent annually. In 2006, for example, Facilities Maintenance and Xcel recommended a 6 percent increase for budgeting purposes. If this trajectory continues over time, the city could expect to see a more than doubling of the city's utility costs fiom $1.8 million in 2007 to $4.3 million in 2020. In this scenario, energy efficiency and renewable energy could potentially save the city $15.4 million by 20203. However, the utility bill analysis below (graph X} is more than a `snapshot' of current and future energy costs. A renewable strategy paired with strong efficiency measures in city facilities will dramatically limit future cost increases. The graph below illustrates the unsustainable nature of growing energy costs over the past several years. s Savings assumes 7 percent annual growth on both electricity and natural gas costs. Savings was also determined assuming leveling of costs in 2008 through efficiency and renewable projects resulting in a 0 percent growth. 38. Graph X: City Utility Costs 2Q04-2Q07 $5,000,000 $4,5oa,ooo $4, 000, 000 ~ • • $3,500,000 • • r $3,000,000 * ' s $2, 500, 000 • • • ~ r r $2,000,000 ' - • $1,500,000 $1,000,000 ~°.i $500,000 - - - - - - - - - / ~ - - - - i i ~ Y $a 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 - ~ electricity cost - - ~ natural gas - - total cost While electricity costs have continued to grow, as well as the city's total energy costs overall, natural gas costs have remained relatively stable, and have even seen a slight decrease in recent years. An announcement by Xcel in tnid 1Vlarch 2008; however, suggests that this could be changing dramatically. The Rockies Express pipeline opened in January and started carrying natural gas out of the region. Local wholesale natural gas prices will be increasing significantly, according to Xcel. Over the last several years, we've enjoyed an extended period where local prices were lower than the national average, but the opening of the pipeline has virtually eliminated that advantage. As a result, Colorado is experiencing higher costs for generation fuel and purchased energy. This will translate into a higher Electric Commodity Adjustment (ECA) in 2008, which is a filing by Xcel with the Colorado Public Utilities Commission (CPUC) to recover dollars associated with rising generation fuel and purchased energy costs. Xcel Energy is required by tariff to file adjustments to its ECA whenever its costs are $40 million greater or less than the fiends collected under its Electricity Cost Adjustment clause. The renewable strategy for the city illustrates a path for the city to obtain 100 percent of its power needs from renewable sources in the next 10 years. This combined with energy efficiency measures will dramatically reduce the city's energy costs and GHG emissions. By committing to a goal of 30 percent renewable energy for municipal operations by 2010, the city of Boulder will once again "lead by example" to help the Boulder 39. community begin this necessary transition. By committing to a goal of 100 percent renewable energy by 2018 for the city organization, city staff can begin to develop the relationships with renewable power providers and blend the goal into the ongoing Franchise discussions with Xcel. In order to finance future renewable projects, municipalities are faced with unique challenges. Because the city is a tax exempt agency, it is unable to take advantage of tax credits to bring the cost of the project down. Additionally, high capital expenses create a barrier for self funding. Below are several creative options for financing municipal renewable projects. Self-Fund Approach- This would require annual budgeting and heavy capital expenses to implement renewable projects. Additionally, the city would assume the liability, replacement cost and maintenance for the life trine of the project. Existing Bonding- The city could choose to issue a municipal bond for large scale renewables, which would require voter approval. Clean Renewable Energy Bond-The Energy Policy Act of 2005 provides electric cooperatives and municipalities with Clean Renewable Energy Bonds (CREB). A CREB is a special type of tax credit bond providing municipalities the equivalent of an interest- free loan for financing qualified energy projects. CREBs are largely modeled on the Qualified Zone Academy Bond program that provides tax credit bonds for school renovation and upgrades in certain clualif°ied school districts. They deliver an incentive comparable to the production tax credit that is available to private renewable energy project developers and investor-owned utilities, which the city is unable to take. Third-Pasty Financing- Third-party financing for renewable power projects can make the high upfront cost. of installation, the major obstacle to the city, much more achievable. For the renewable energy market at large, third-party finance directs large amounts of capital into ~~~hat is currently a relatively fragmented, inefficient marketplace. In the third- pai-ty scenario, the city partners «~°ith an investment%operator through a Po«~er Purchase Agreement (PPA) for the sale and purchase of the generated po«-~er. This type of arrangement places much of the risk (capital investment, replacement cost, maintenance, production} on the third party rather than the city. This is the model utilized for the 75~' Wastewater Treatment Plant one-megawatt solar P~~r project, scheduled to begin construction early April 2008. This model alto«~•s the third party investor to take advantage of the tax credits and accelerated depreciation. In order to most quickly and efficiently achieve energy independence for the city organization, it is staff's recommendation that we consider "financing suites,'' or efforts to combine several of the above strategies. This diversification has proven most successful for large organizations implementing renewable projects. While increased energy efficiency and conservation could substantially cut our current demand for energy, they are not by themselves enough to wean us from fossil fuels. To 40. truly address the supply side of the equation, we will need to generate renewable sources. The steady sunshine and proximity to other attributes that make our region so attractive to live in also make it ripe for energy independence. Renewable energy technologies that harness power from the wind, sun and hydroelectric power can contribute to regional electricity supplies, and they won't run out. But while the state of Colorado is showing leadership in the area of renewable electricity, to truly generate the amount of energy we will need in this region, this effort must come fi•om within our county. In 2006, only about three percent of the power from Colorado's electricity grid came from renewable sources: wind, solar, and a small amount of hydroelectric. This hasn't changed much in 2007; however, Xcel has committed to increasing their renewable portfolio in their 2007 Least Cost Resource Plan. The renewable component on the Colorado grid is expected to increase substantially in the coming decades, as state law requires that utilities generate 20 percent of their electricity from renewables by 2020. But with electricity comprising roughly 98 percent (excluding vehicle fuel) of the city's overall energy needs, renewable electricity will, in a business-as-usual scenario, constitute only about 5 percent of our total energy needs Our current solar projects scheduled for installation in 2008 will result in a 5.7 percent overall renewable component by the end of 2008. In order to continue to move towards energy independence, we need to find other ways to encourage the use and development of renewable electricity above and beyond what state law requires. Wind power offers the most potential today of any renewable energy technology in our region because of its relatively low cost. Other types of renewable electricity -such as the various types of solar power, technologies that convert biomass or waste to energy, and hydroelectric power -are also very promising. Promoting renewable energy in our region at such a level will require substantial help from local, state and federal agencies. Fortunately, Smart Grid technology allows for future renewable expansion. For this reason, Xcel will be a key partner for weaning the city off fossil fuels. Further, unlike states that allow "Community Choice" laws, which gives local governments -not the private utilities - control over what type of electricity to use, the city's current Xcel Franchise Agreement requires that large-scale renewable energy be provided through Xcel. A key strategy of the future Franchise negotiations will be to allow Boulder to have more choice over the type of power we receive. The attached draft strategy attempts to balance opportunities for future renewable projects with cost implications as well as a public awareness aspect. In other words, the recommended option is based on approximately 85 percent of the city's future renewable power coming from "least cost per watt" projects, while the remaining 15 percent, while potentially slightly higher in cost, will take in to account visibility, showcase opportunities and demonstrated commitment by the city. Vehicle Fleet The city's Fleet Services has also been active in reducing GHG emissions from the use of city vehicles. GHG emissions from the city's fleet have been reduced over time by 41. reducing VMT, expanding biofuels use, and purchasing vehicles with better fuel economy, including hybrid electric vehicles. In 2006, these strategies reduced emissions to 65 tons below the Kyoto target. A preliminary analysis shows that in 2007, the city fleet had reduced emissions even further. In 2007, Fleet Services purchased 36 vehicles. In nine of these cases, no alternative fuel or hybrid vehicle was available that met the city's specifications. The remaining 27 vehicles purchased were alternative fuel or hybrid vehicles. Specifically, the city purchased three E85 vehicles, 16 diesel vehicles capable of using B20, and eight Ford Escape Hybrids. C?verall, the city purchased an alternative fuel or hybrid vehicle 100 percent of the time when one was available and 75 percent of the time overall. CAP staff has met with employees who regularly drive city vehicles to explain the importance of GHG reductions and will continue to serve in this role as a technical resource to city employees and to Fleet Services staff as new alternative vehicle and fuel technologies become available. The city fleet could become an early adopter of V2G technology. After alternative fuel vehicle rebates, the cost per vehicle is $8,000, which is projected to pay for itself over the life of the vehicle in fuel cost savings. The potential for Smart Grid technology (see below) will allow the city to take full advantage of V2G. Vehicles will have the ability to charge and discharge to the grid depending on peak load and cost of energy. We can set the vehicles up to charge at night when the energy is cheapest and then feed back to the grid when they're plugged in during the afternoon peak when energy is most expensive. Another unique value to the city is that in case of a power outage, vehicles can feed energy back into specific buildings. This allows for'islanding' of certain key buildings such as police, fire or hospitals, using the city's vehicle fleet as a source of uninterrupted (but limited?) power supply. Greenhouse Gas Emissions Reduction Goal Questions S. Should staff pr©ceed t© develop options for an additional and longer term greenhouse gas reduction goal? The city of Boulder is viewed as a leader in addressing climate change for establishing an aggressive goal for reducing emissions and for committing resources to work toward the GHG goal. Recent studies suggest that significant reductions and stabilization of emissions in the next few decades may prevent some of the more disastrous impacts. Federal action to address emissions is expected in 2009, if not this year, and z~~ill likely result in national emissions reduction targets, a cap and trade for industry, increased use of renewable fuels for electricity, vehicle efficiency and biofuels. While the current goal is achievable, City Council has expressed an interest in being more aggressive with the CAP and may be interested in establishing additional goals for emissions reductions that align the city's work with the goal of emissions stabilization. For example, City Council could set emissions reductions targets that match those set by the state of Colorado, or 42. targets that work toward carbon neutrality could be set. An upside to a longer-term goal is that larger impact strategies become more feasible. A downside is that it seems too far in the future to create ownership or a need for urgency. Interim targets, in addition to the existing 2012 target, may be desired to maintain focus on immediate actions. The following bullets are examples of targets adopted or proposed by other organizations: • The Colorado Climate Action Plan (CLAP) has established two targets, 20 percent by 2020 and 80 percent by 2050, both relative to 2005 levels. Achieving the city's 2012 goal will exceed the CCAP 2020 goal. • The University of Colorado has signed on to the Presidents Climate Commitment, which includes setting interim targets working toward climate neutrality as soon as possible. • Boulder County is also committed to working toward eventual climate neutrality. • Clean Energy Action, a grassroots energy interest group in Colorado promotes a pathway for achieving 80 percent reductions by 2020, primarily through renewable power supplies and shutting doom fossil fuel based power plants. Staff recommends that council maintain the current 2012 goal as it is both challenging yet achievable. If council wants to establish additional targets, staff suggests that at least two additional targets be set with dates and emissions levels. Staff also recommends that additional targets be set relative to 2005, rather than 1990 emissions levels, in order to be consistent with targets set by other entities. ti . PUBLIC AND BOARD INPUT CAP Work With the Environmental Advisory Board {EAB) and CAP Advisory Group The Environmental Advisory Board receives regular updates on the CAP. Input from the EAB regarding this memo will be received at the April 2 meeting. While the CAP was under development, two committees were formed to provide technical and policy guidance. At the request of the Boulder Chamber of Commerce and City Council, staff convened the Climate Action Plan Advisory Group (CAPAG) in January 2007 to serve as a technical review body for the CAP. One EAB member serves on the CAPAG. The CAPAG meets monthly and provides technical and policy expertise regarding program design, development and implementation v~~ith the purpose of meeting or exceeding the city's GHG reduction goal. All CAPAG materials are posted on www. environmentalaffairs. com. Input from the CAP Advisory Group and Environmental Advisory Board regarding this memo «~ill be received at the March 26 meeting. The EAB and CAPAG 43. recommendations will be presented to council at the study session by the member serving on both the boards. Tiansporation Fork with EAB, T AB, Planning Board and FLO Committee Deleted for EAB meeting VI. QUESTIONS: Initiatives 1. Does council have questions or comments about the draft renewable energy strategy to achieve energy independence for the city organization? 2. Should staff still proceed with the proposed levels and distribution of funding in the FLO-modified Current Funding and Action Plan list of projects and programs? • If so, does council continue to support staff returning to City Council to amend the TMP with the FLO-modified Current Funding/Action Plan project and program list? Policy implementation 3. Would council like staffto proceed with further evaluation of regulatory options to improve energy efficiency in existing residential buildings? For commercial buildings? 4. For new construction, does council want to see a full scale commercial green building code, or an interim code that addresses energy? If a full scale program, does council want staffto begin the process before the third quarter of 208? 5. Should staff proceed to develop options for an additional and longer term greenhouse gas reduction goal? Does council have any questions or comments regarding the set of transportation demand management policy initiatives; and where on "the dial" should staff explore further to support the CAP and VMT reductions? Funding 7. Does council have any questions or comments about enhancing CAP programs and services, and the associated tax increase? 8. Does council have questions or comments on transportation funding; and does council still support staff's exploration of options for additional funding for 44. • Does council support investigating the range of Action Plan level of funding as represented by the Blue Ribbon Commission example(s) and the FLO- modified Action Plan? VII. CONCLUSION: If council discussion indicates that staff should move ahead in the direction suggested by the questions to council, staff will pursue the following actions for each question area. Initiatives 1. If council supports moving forward with the city renewable energy strategy staff will begin planning the work program. 2. If council agrees with the proposed levels and distribution of funding in the FLO- modified Current Funding and Action Plan, staff will return to Council «~ith an agenda item to amend the TMP investment programs to reflect the FLO work. Policy irnpletnentation 3. Staff will conduct more in depth analysis of the regulatory options and begin public process to get input from the community. 4. To be completed 5. Staff will take the next steps required to formalize additional and longer term GHG goals. 6. If council directs staff to explore potential policy options, staff will return to council with a proposed work plan and time line for beginning a wider community discussion of these initiatives and for bringing more detailed information and analysis on them back to council. funding 7. If council supports implementing the CAP enhancements recommended, staff will develop an ordinance changing the tax rates and schedule this item for an upcoming council agenda. 8. If council supports pursuing the range of funding for transportation suggested by the PLO-modified Action Plan and the Blue Ribbon Commission examples, staff will coordinate with the city effort pursuing the BRC's recommendations and will return to council with a proposed work plan and tune line for bringing more detailed information and analysis on funding options to council. 45. ATTACHMENTS: Climate Action Plan Background City of Boulder 2007 Climate and Energy Programs Progress Report St?VEEP Energy Efficiency for Commercial Buildings Report City of Boulder Renewable Energy Strategy 46. ATTACHMENT A CLIMATE ACTION PLAN BACKGROUND Climate Action Plan In May 2002, City Council passed a resolution to develop and implement a local action plan to reduce the community's greenhouse gas emissions, and to prepare an annual report summarizing progress. The resolution set an initial emissions reduction goal in alignment with the Kyoto Protocol target or 7% below the estimated 1990 level. This resolution and the goal built on environmental policies found in the Boulder Valley Comprehensive Plan (BVCP) and the City Council's Environmental Goal. Specifically, the BVCP has policies on energy conservation, encouragement of energy alternatives, city leadership in resource conservation, energy-efficient land use and energy-efficient building design and construction. The goal also arose from concerns about the potential negative impacts of climate change on the Rocky Mountain region and beyond. Climate change is largely caused by human consumption of fossil fuels. According to many studies, for Colorado, climate change will likely mean diminished snow pack, increased drought, more insect outbreaks in forests, an earlier and longer wildfire season, reduced habitat for native species, and less economic growth. These changes would be detrimental to local and regional tourism, farming, skiing, and other related industries. According to many studies, for Colorado, climate change will likely mean diminished snow pack, increased drought, more insect outbreaks in forests, an earlier and longer wildfire season, reduced habitat for native species, and less economic growth. These changes would be detrimental to local and regional tourism, farming, skiing, and other related industries. The CAP was approved by City Council in May 2006, and serves as a roadmap to achieving Boulder's goal and places Boulder on the path to a sustainable energy future. The CAP outlines baseline information, including the emissions inventory, and establishes the context for programs and priorities. The primary strategies for reaching the 2012 emissions reduction goal are to reduce energy use through conservation and improved energy efficiency, to shift to renewable energy sources for buildings and transportation, and to reduce vehicle miles traveled. The specific strategies are based on utility energy efficiency programs, and are modeled on programs and policies in use in other communities, stafl'research, and input from the community. Energy efficiency programs are the primary focus because investments in efIiiciency have a relatively short payback period, especially where utility rebates and tax incentives are available, snake lasting improvements to buildings, and contribute to the goal of energy sustainability. The CAP also provides a framework to compare and analyze alternative policies, programs and strategies to facilitate Council's review and decision-making process. The CAP roadmap is continuously evolving in response to new information, legislation and opportunities. The emissions reduction efforts endeavor to adhere to the following guiding principles: ¦ Complement other city policies and initiatives, including the BVCP; ¦ Balance cost burden across the sectors according to the city's investment in sector programs and services; ¦ 11~Iaximize utilization of external funding, such as Xcel Energy rebates, grants and federal tax incentives, when possible; ¦ Serve low income and underrepresented populations, such as the elderly and non- English speaking households; and ¦ Engage in strategic partnerships wherever possible. An overarching strategy of the CAP assumes that the city will serve as a resource and provide programs and services to generate voluntary efforts to reduce greenhouse gas emissions. Additionally, the CAP recommends that city resources be focused on energy efficiency through audits, and information on local qualified contractors who can perform the work, and rebates and incentives to maximize implementation of efficiency measures. The city's efforts are designed to complement other services, most importantly Xcel Energy's Demand Side Management (DSM) programs. Providing information, education and support for renewable energy investment is another primary focus although currently far fewer resources are necessary to support renewable energy penetration, thanks in part to Federal and Xcel incentives. Expanding energy efficiency in the community creates obvious and tangential benefits. The CAP suggests that to reach a high level of efficiency, the city may need to consider implementing policies packaged with financial support or incentives. This approach is most suitable for existing buildings (residential and commercial) which represent a high proportion of city energy use and will not be affected by codes addressing new construction. The CAP presents a broad range of programs, services and policy approaches for reducing emissions. Section ~7I the Implementation Plan-describes recommended actions, costs and emissions reductions for implementing the CAP. Most of the actions are intended to be in place through 2012, with service levels and programmatic details subject to change in response to new circumstances and program evaluation. These actions include continuation of existing activities and programs, as well new actions that will achieve far greater emissions reductions. The Implementation Plan reflects participation rates and results that are believed to be reasonable, achievable and slightly conservative, so as not to overestimate results or under-estimate the necessary budget. The Implementation Plan focuses on actions that complement and facilitate private sector investments and utility rebate programs. City resources are used to provide information, tools and resources to overcome the barriers to implementation of energy efficiency and renewable energy actions in all sectors, rather than pay for the actions directly. In addition to community programs, services and targets, the CAP outlines specific goals for the city organization with respect to expanding investments in energy efficiency and renewable energy. The Implementation Plan is updated as necessary to reflect significant shifts in strategy and funding, and to respond to external policies and initiatives. The CAP can be viewed at www.environmentalaffairs.com or www.beClimateSmart.com. When adopted, the CAP anticipated a gap in emissions reductions necessary to meet the city's 2412 goal. To address this gap the CAP suggested purchase of renewable energy credits or RECs in 2413 and beyond, in order to achieve and maintain the GHG objective. In August 2446, when City Council determined the CAP tax rates to place on the ballot in November, it chose to eliminate the REC purchase and asked for more aggressive action to reduce emissions. Among other factors, this decision related to a desire to limit the maximum annual tax revenue indicated on the ballot, and also a desire to maxirnize other emissions reduction strategies and avoid purchasing RECs that require ongoing investment. This decision increases the challenge of meeting the goal yet it also provides the opportunity to consider other innovative options. Greenhouse Gas Inventory The city's greenhouse gas inventory tracks emissions from energy use, transportation and solid waste generation within the community. Staff estimates the GHG impact for most programs and initiatives and has incorporated tracking to refine estimates to improve projections but the inventory is the ultimate measure of progress toward the GHG goal. The primary data sources are community electricity and natural gas consumption fiom Xcel Energy, annual vehicle miles traveled from the city's Transportation Division, tons of garbage sent to the landfill reported by trash haulers operating in Boulder, and offsets from the purchase of renewable energy, such as wind power and biodiesel provided by suppliers and retailers. Production emissions fiom goods consumed in Boulder are not included in the inventory. The system translates these inputs into GHG emissions by sector and by fuel source. The vast majority of the city's emissions are related to electricity use, which is primarily derived from coal. To better understand the inventory it is helpful to look at energy source and sector contributions. Table 1: 2006 Emissions by energy source and sector source. Energy sources Percent Sector sources Percent Electricity 61 Commercial and 58 Industrial Transportation 22 Transportation 22 Natural gas 14 Residential 17 Solid waste 3 Solid waste 3 100 100 After experiencing declining GHG emissions from 2043 through 2005, Boulder experienced an increase in emissions in 2046. The 2006 inventory shows an increase of 4.6% from 2445 levels. The 2446 levels are the highest emissions levels since 1994. Increased energy use from redevelopment, new construction and more electrical equipment likely contribute to increased emissions. The following graph depicts the current trends of Boulder's GHG emissions based on energy source. It is important to note that the offsets depicted in yellow actually decrease Boulder's emissions. They are shown at the top of this graph for demonstrative purposes. Actual Inventory by Energy Source 2, 200, 000 Fore castlnventory 2, 000, 000 1, 800, 000 p 1, 600, 000 U ~ 1,400,000 ......J . c 1, 200, 000 0 N 1, 000,000 W 80'000 GHG Emissions T ~t = I ,459 3?5 mtC02e ~ 600,000 400,000 200,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 ? Electricity ? Natural Gas ? Vehicle Fuel ? Landfill Gas ?Offsets According to Xcel's 2006 annual report to Boulder, total electricity consumption increased by 5.5% and natural gas use increased by 9%. Possible, but not proven, reasons for the increase are increases in air conditioning from additional systems and longer use, increases in electric appliances, and new construction. Commercial buildings and industrial facilities continue to be the largest source of emissions at 58% of the total, a 4% increase from 2005. However, there was also 15% increase in the amount of renewable energy purchased either through renewable energy credit companies or Xcel's Windsource program. Transportation emissions peaked in 2002 and have since fluctuated below this level. However, emissions did increase by 2% from 2005 to 2006. It appears that efforts to reduce vehicle miles traveled and encourage the use of alternatively fueled vehicles are helping stabilize emissions in this sector. overall, the city's 2006 emissions were 1,887,596 metric tons carbon dioxide equivalent (mtC~2). The community must reduce annual GHG emissions by 406,489 tons fiom 2006 levels by 2012 in order to meet the goals of the CAP. This represents a 22% decrease from 2006 levels. While this goal is challenging it is achievable. For example, if the amount of Boulder's electricity derived from wind increased to 25 percent (achievable through Windsource purchases) and 100 megawatts of solar PV were installed in Boulder, the 22% decrease would be realized and the GHG goal would be met. The city's GHG inventory will be updated with 2007 data in June 2008 once all data has been received and staff will provide City Council with an updated inventory later in the summer. Climate Action Plan Tax anal 20(18 Bualget In 2007, Boulder became the first municipality in the nation to tax energy use as a method to fund GHG emissions reduction strategies. This tax was approved by 60% of the November 2006 election voters and funds implementation of the CAP. Xcel Energy began collecting the CAP tax on Boulder customers' electricity use in April 2007. The ballot measure set minimum and maximum rates for each customer sector, residential, commercial and industrial, and currently the minimum rates are in place. The initial CAP tax rates were set to generate an annual budget of $860,265. Sector rates generate revenues corresponding to the proposed 2447 expenditures for the sectors with the following breakdown: residential sector - 58%; commercial sector - 39%; and industrial sector - 3%. As sector expenditures change over time, sector contributions and tax rates will also be adjusted to maintain balance between revenues and expenditures. Council can adjust the tax rates up to the voter-approved maximum levels through an ordinance change. CAP tax revenues were lower than projected in 2007. The primary reason is that April revenues did not equal a complete month's re~~enue due to Xcel Energy customer billing cycles. CAP expenditures were reduced to compensate for reduced revenue; $789,000 was collected in 2007. In 2008 the tax will be collected for a complete year and revenue projections are in line with the approved budget of $875,000. CAP Progress Report As requested in the 2002 GHG resolution, staff prepares an annual progress report summarizing the major activities and results achieved. A copy of the report was provided to City Council during the week of March 19 (included as Attachment B) and it is available on vvww.beCliinateSmart.com. Because the report goes into detail about each program, summary information is provided in this section. The city began laying the foundation for full scale CAP implementation in 2007. Most of the existing programs were expanded, with minor adjustments to improve effectiveness, and several new programs were added. Prior to 2007 the city's GHG programs were limited to residential and commercial energy efficiency and promotion of renewable energy through a wind challenge campaign. Beginning in 2007 a CAP brand or campaign name, ClimateSmart, was selected and marketing, education and outreach efforts were launched in the fall. Additionally the city began evaluating existing and potential actions to reduce transportation emissions to complement the efforts of the city's Transportation Master Plan. Much was accomplished in 2007. Many CAP progress indicators were met, and each program with a participation rate limited by funding was at capacity. Some programs had awaiting list going into 2448. Interest and participation has been very good overall, especially given the fact that Boulder has not had access to robust energy efficiency programs in the past. Previous Xcel DSM programs were limited to the commercial sector and few Boulder businesses were aware of the programs or participated. We are still working to develop or facilitate development of the full suite of information and resources to enable households and businesses to overcome barriers to taking the actions needed and anticipate that by the end of 2048 to be much further down this path. Cane challenge has been engaging multi-family housing and rental housing at a level that will adequately address energy use. By working with the Boulder Area Rental Housing Association, the CU Energy Green Teams and others, resources and services will be tailored to renters. Preliminary results from the energy efficiency and renewable energy programs are promising. Because limited services were offered before 2007 and expanded services were provided throughout the year, actual implementation results will not be available until the end of 2008. Based on the information that we do have, we are confident that the work underway is building a solid foundation for future emissions reductions that will be reflected in the annual GHG inventory. Examples of 2007 accomplishments: Completed 35 commercial building energy assessments; Completed 220 residential energy audits; Weatherized 20 lower income households; Provided 725 energy and water conservation kits ; Provided a subsidy for or distributed almost 15,000 energy-efficient compact fluorescent lights (CFCs); Provided over 1,500 high efficiency LED holiday lights in exchange for incandescent versions; Presented ClimateSmart programs on 22 occasions to over &00 people; and Sponsored a home energy makeover on a Boulder home, which will save $2000- $2500 per year on energy bills. The CAP assumed programs and services would be expanded over time to enhance progress toward the goal. Achieving the goal involves a 22% reduction fiom 2006 emissions levels. The current programs and service levels are estimated to result in emissions levels that are short of the goal by about 48 percent. Breakdown of GHG reductions -Current Strategies Energy Efficiency r 7% f Renew able Energy ~ 15% Shortfall 48°l0 CO Renew able Energy Standard 22% Marketing ~ 2°l0 iy4 City Generation LTransportation 5°l0 1 °lo Achieving emissions reductions through energy efficiency and renewable energy require information and time for property owners to incorporate investments into their budgets. Therefore staff is recommending expanding programs and services to increase emissions reductions achieved in the coming years. The proposed enhancements to the CAP are estimated to get the city much closer to the 2012 goal, falling short by about 15 percent. Breakdown of GHG Reductions -Proposed Strategies Shortfall Qty Generation 15% 5°Jo Transportation 1% Energy Efficiency 36% Marketing 5% CO Renew able Renew able Energy Energy Standard 16°!° 22°l0 Boulder County Boulder County is an important partner in CAP implementation by providing matching funds for programs, contributions to marketing costs and grants and conducting relevant program research and analysis. County staff participate on the CAPAG and coordinate the Consortium of Cities' Energy Strategy Task Force which developed the Sustainable Energy Plan (SEP) in 2447. The SEP includes innovative program options and analysis, providing useful information for CAP staff. Finally, Boulder County staff worked with each community in the Consortium of Cities to encourage adoption of the SEP and participation in ClimateSmart programs and marketing. These efforts create a coordinated, regional initiative that leverages city funds and will increase the effectiveness of the CAP and ClimateSmart marketing and outreach. Colorado Climate Action Plan In November 2447, Governor Ritter released the Colorado Climate Action Plan (CLAP) which identifies climate change as "our generation's greatest environmental challenge" and calls for action to reduce GHG emissions. The Plan establishes objectives to reduce emissions of greenhouse gases by 24 percent from 2445 levels by 2424, and makes a shared commitment with other states and nations to even deeper emissions cuts by 2054. By 2454 reductions in GHG emissions of 84 percent are needed. The CCAP calls for actions to reduce GHG emissions in the following areas: • Recognize Agriculture as Part of the Solution • Transportation • Provide Greener Electricity • Research and Innovation for Coal, Natural Gas and Renewable Energy • Emissions Reporting • Regional Carbon Emissions Trading • Foster an Educated Workforce The plan includes a framework of strategies to work toward the goal that builds on existing strategies and sets the stage for new initiatives. The Governor's Energy Office (GEO) plays a lead role in developing Colorado's New Energy Economy which is integral to the CCAP. The GEO reorganized and expanded its staff, budget and program offerings in 2007 and will continue to grow in 2008. The city of Boulder has received funds and technical assistance to support a variety of programs including building codes training and a residential insulation pilot. A grant request to support new, innovative programs was submitted in March. Staff anticipates that GEO «~ill be a valuable technical and financial partner for the CAP. In 2008, GEO will be developing the Colorado Carbon Fund with the goal of creating a funding source and market for Colorado GHG offsets. City staff has been in communication with GEO on this project and is optimistic about the value of the fund to the CAP as a potential source of funds and to the Boulder community as a market for offsets. - l -l I _ . ~ . City of Boulder Office of Environmental Affairs City of Boulder I i Office of Environmental Affairs ~ - Climate and Energy Programs _ Progress Report - 2007 . MARCH 2008 ® Prepared by: Kevin Afflerbaugh Andrew Bascue r +rY ~ YaelGichon 4 7 ~ ' ~~~i ! ~ Beth Powell ~ 4"~ ~ i ^ ,B y Y , A:t J ~ Sarah Van Pelt y~,~~t ~ ji IP' ~ ~ ~ ~ `j ~ ~ i ~ www.environmentalaffairs.com ~5~ , ~R _ www.beClimateSmart.com .s ul ~ ~rr~~~+, r"`t«'~~~"~'~~q~y~ if ~ nqi y ~ ~ i } ~ 9 s ~ , ~ -r = ~ _ ~ ',lu ;:`ii ~ ' u ,off„~ FF. ro,,i`~ 's°°. ,,.._fJr. ~ 1~.~ Iwa~~. .~w..:: !/F'/fT'.i e~~Y'~'~:, eGll~W..~i "1.d'~~~t:t:.t?i?._ -'.v TABLE OF CQNTENTS I. OVERVIEW page 3 ~ II. CLIMATE ACTION PLAN page 3 ~ III. GREENHOUSE GAS INVENTORY page 5 ~ IV. CLIMATESMART PROGRAMS page 7 ' ' ~ a. CIir7~ateSrY~art at Work page 7 i. Building Performance Program page 9 ii. Small Business Energy Performance Program page 9 ~ iii. Industrial Ener Efficient Worksho a e 9 gY Y p p g iv. Next Steps page 10 b. ClimateSmart at Hame page 10 ,i ~ \ i. Residential Energy Audit Program (REAP) page 12 ii. Neighborhood Sweep page 14 ~ ~ iii. Home Performance with ENERGY STAR (HPwES) page 15 iv. Multifamily Housing Energy and Water Assessment Program... page 16 v. Weatherization Program page 17 vi. LED Holiday Light Exchange page 18 vii. Shanahan Neighbors for Climate Action page 18 viii. Green Heart Institute page 18 ix. Home Energy Makeover Contest page 19 x. Lighting Program page 20 xi. Energy Green Teams page 21 c. ClimateSmart On the Road page 23 i. Reducing Vehicle Travel page 23 ii. Improving Vehicle Efficiency page 23 iii. Increasing Supply and Use of Lauver Carbon Fuels page 24 iv. Next Steps page 24 d. Marketing, Outreach and Communications page 24 i. Branding the Climate Action Plan page 25 ~ ii. Marketing & Communications page 25 1w iii. Community Outreach &Events page 26 iv. Wind Challenge page 26 v. Next steps . . . page 26 V. CLIMATE ACTION IN CITY OPERATIONS page 27 a. Facilities and Asset Management (FAM) page 27 b. Fleet Services page 28 ' c. Green Points Program Updates page 28 r~ d. Renewable Energy Fund page 29 ~ e. Chicago Climate Exchange (CCX) page 30 - ' ~ f. LED Holiday Lights nn Pearl Street Mall page 30 VI.CONCLUSIONS page 31 _J ~ ~ _ ~ I OVE RVI EVE In 2007 the city of Boulder continued to lay the foundation to reduce greenhouse gas {GHG) emissions. City staff from the Office of Environmental Affairs (OEA) and local partners began implementing the Climate Action Plan (CAP) adopted by City Council in 2006. The CAP is a work- ing document that outlines programs that will guide the city's efforts to reduce GHG emissions % to meet the goals of the Kyoto Protocol by 2012. ~s ~•i ?tt~. In 2006, Boulder became the first municipality in the nation to tax energy use as a method to fund GHG emissions reduction strategies. This tax was approved by 60% of the November elec- tion voters and will be used to fund implementation of the CAP. Beginning in April 2007, Xcel Energy began collecting the CAP tax (based on electricity use) from Boulder customers. The 2006 GHG inventory revealed an increase in emissions relative to 2005, after three consecu- " tive years of reductions. Implementing the CAP will have a measurable effect on emissions al- though it may take a few years for reductions to exceed growth in energy use related to new rM construction. ~ .~a.~- x u~d+.,. is In 2007 many existing programs were expanded and several new programs and services were - implemented. Highlights from 2007 include: " ~ ~ • Began collection of a city-wide carbon tax to fund implementation of the Climate Action Plan. f"`~` ' • Doubled the number of commercial building energy assessments to 35 businesses as part of ~ rt- - the Building Performance Program. E t. . • Established a Trade Ally Network to support commercial building energy efficiency improve- ~ ~ , menu and renewable energy systems. • Expanded the Residential Energy Audit Program by tenfold, serving 300 homes. ~ ' ~ -~r • Doubled residential weatherization services, serving 20 homes. ~ • • Held a second neighborhood sweep to provide energy efficiency kits and information to 350 households in Martin Acres. • Provided a subsidy for or distributed almost 15,000 energy-efficient compact fluorescent _ lights (CFL). j~~;--• • Developed and launched Climate5mart, the CAP's marketing campaign, to engage the com- munity and inspire voluntary action to reduce emissions. ~ ~ • Expanded outreach and education efforts in the community. ~ ~ ~ ~ • Continued and expanded partnerships with Boulder County and local communities to offer jointly funded programs under the umbrella ClimateSmart campaign. ~ ~ • Worked to leverage funds from external sources. • Reduced emissions from city operations in excess of Chicago Climate Exchange (CCX) require- a menu. • Farmed the ClimateAction Plan Advisory Group (CAPAG), comprised of local technical experts . y'.~ and stakeholders to provide input on CAP implementation and an evaluation of options for y ' ~ increasing emissions reductions. 'r~ti~„~~.~~- y 2007 was dedicated to buildin the foundation for CAP im lementation. Emissions reductions r~"- ~w w; g p will be realized over time, in responseto the city's programs, services and inspirational market- ~ r~'.`^ ~ r t ing and community outreach efforts. _ .5. :ti CLIMATE ACTION PLAN , ~ - City Council approved the ClimateAction Plan in June 2006, culminating years of effort by staff, Council and the communit to develo a Ian to combat climate Chan a throu h GHG emis- "t ~ Y p p g g ' x : ' , . lions reductions. The CAP outlines baseline information, including the emissions inventory, and r establishes the context for programs and priorities. It also presents emissions reduction strate- "'~=~~A~~:. gies for each sector. The primary strategies for reaching the 2012 emission reduction goal are to w reduce energy use through conservation and efficiency, shift to renewable energy sources, and ~ ~ to reduce vehicle miles traveled. The specific strategies are based on programs and policies in other communities, utility energy efficiency programs, staff research, and input from the com- • • munity and Climate Action Plan Advisory Group (CAPAG). The CAP roadmap is continuously evolving in responseto new information, legislation and opportunities. At the request of the Boulder Chamber of Commerce and City Council, staff convened the CA- PAG in January 2007 to serve as a technical review body far CAP implementation. Throughout ~ the yearthe CAPAG met monthly and provided technical expertise and policy guidance regard- ing program design, development, and implementation with the purpose of meeting or ex- ceeding the city`s GHG reduction goals. All CAPAG materials are pasted on www.environmen- talaffairs.com. The Advisory Group's work will became mare important in 2008 as CAP staff works to select pathways for more aggressive emissions reductions. ~ / Section VI of the CAP -The Implementation Plan -outlines the specific programs and actions ~ proposed for 2007 to 2012, with service levels and programmatic details subject to change in response to new circumstances and as targets are achieved. This section reflects participation rates and results that are believed to be reasonable, achievable and slightly conservative, so as not to overestimate results or underestimate the necessary budget. The CAP can be viewed at ~ www.environmentalaffairs.com ar www.beClimateSmart.com. When adopted, the CAP anticipated a gap in emissions reductions necessary to meet the City ~ Council goal by 2012. To address this gap the CAP suggested a purchase of renewable energy credits or RECs in 2013 and beyond, in order to achieve and maintain the GHG objective. City Council chose to eliminate the REC purchase and asked far more aggressive action to reduce emissions. Among other factors, this decision related to a desire to limit the maximum annual tax revenue indicated on the ballot, and also a desire to maximize other emissions reduction strategies and avoid purchasing RECs that require ongoing investment. Because the CAP assumed that programs, service levels and budget would be adjusted over time, and because City Council requested more aggressive measures as an alternative to RECs, CAP staff is working with the CAPAG (and the city`s Environmental Advisory Board} to evaluate additional pro- gram and policy options which will inform a City Council study session in spring 2008. Strategies to maximize emissions reductions will likely result in an update to the Implementation Plan in 2008. Collaborative Efforts f~ ~ Internally, staff from the Office of Environmental Affairs has worked with other city depart- mentswith the dual purpose of ensuring that the city models the behavior and actions desired r in the community and works in a coordinated manner to provide the tools and resources needed for community action to reduce emissions and meet other city goals. Goals and policies within the city`s Fleet Services and Facilities and Asset Management (FAM) divisions have _h achieved emissions reductions for the city organization in the past. New efforts are planned for - 2008 that will set the city on a path to increase building efficiency and renewable energy use. ' ~s' More details are provided later in this report. On the transportation front, a new CAP staff ~ member responsible for reducing transportation emissions began coordinating work with the city`s Transportation pivision and GO Boulder last year. Because a primary CAP strategy far re- r, ( . ducing transportation emissions relies on achieving Transportation Master Plan goals, coordina- tion of programs and marketing campaigns will be enhanced in 2008. t: ~ The city also expanded external collaborative efforts in 2007. Among local government agen- ~ ties, Boulder County, the city of Longmont and many of the communities across the county are ` r;, . coordinating on programs and with the ClimateSmart marketing campaign. This coordination ~~tt was initiated through the Boulder County Consortium of Cities Energy Strategy Task Force P,e. (ESTF), which formed in 2006. Collaboration leverages staff and financial resources and better serves the public in addressing regional and global issues. Y i Boulder County is a key partner in CAP implementation and in researching and designing new initiatives. Their Sustainability Program has provided significant funding for the residential en- ergyaudits, as well as funds for commercial and transportation programs. Through their coor- dination of the ESTF, new policies and programs have been evaluated to identify the most ef- fectivefuture path for consortium participants. The Governor's Energy Office (GEO) greatly expanded its staff and budget in 2007 and will con- tinue to grow in 2008. The city of Boulder has requested funds and technical assistanceto sup- port avariety of programs including building codestraining and a residential insulation pilot. ,1 Xcel Energy remains an important partner far the CAP programs. From collecting and remitting ~ the CAP tax to involvement on the CAP Advisory Group, Xcel staff has been an important element , of CAP implementation. Xcel's demand-side management {DS M) and Solar Rewards programs < provide rebates far energy efficiency and solar photovoltaic equipment and are critical to the success of the CAP. In 2007, Xcel Energy proposed enhancing both programs. The city will par- ticipate inthe Public Utilities Commission's proceedings on these proposals in 2008 to support ~ the strongest possible targets for energy efficiency and renewable energy. The University of Colorado at Boulder (CU) plays an important role in CAP implementation by ~ ~:-4 providing students, who through internships or class projects, assist the CAP staff with education ~ and outreach, research, and evaluation of policies. A CU representative also sits on the CAPAG. _ r ~ i Budget In 2007, funds to implement the CAP were derived from the CAP tax and 2006 trash tax reve- } ' ~ ' Hues for a total budget of $860,265. Xcel Energy began collecting the CAP tax on April 1, 2007 so additional funds were needed to provide the first year budget proposed in the CAP. Use of trash tax revenues was approved by City Council to make up the balance. J~'~~ r..~. The budget allocated funds to programs and services for commercial, residential and industrial sectors. The CAP tax rates were set by City Council in the 2006 ballot language and sector rates correspond to the proposed expenditures for the sectors with the following breakdown; resi- dential sector - 58%, commercial sector - 39% and industrial sector - 3%. As sector expendi- tures change over time, sector contributions and tax rates will also be adjusted. CAP tax revenues were lower than projected for the year 2007. The primary reason is that April revenues did not equal a complete month's revenue due to Xcel Energy customer billing cycles. Expenditures were reduced to compensate for reduced revenue. In 2008 the tax will be col- lected for a complete year and revenue projections are in line with the proposed budget which remains unchanged from 2007 at $860,265. ~ ~ The CAP called for increasing the budget over time, which would require an increase in CAP tax ~ rates. Rates can be increased to sector limits established in the ballot measure without voter ~ approval. Options for more aggressively reducing emissions and associated revenue require- mentswill be discussed with City Council during 2008. Staffing ~ As mentioned previously, the Office of Environmental Affairs (OEA), a division of the City Man- ager`s Office, is charged with Climate Action Plan implementation. Over the years, budgeting and staffing levels have varied. In 2006, OEA had one full time and one fixed term employee working on GHG reduction programs. The CAP budget allowed for the hire of four employees ~ who by May 2007 were in place to manage four different areas of focus. These areas of focus are the commercial sector, the residential sector, the transportation sector, and marketing/out- reach. Two of the positions are fixed term, expiring at the end of 2008. Program and staffing ~ priorities will be discussed with City Council during 2008. GREENHOUSE GAS INVENTORY = The inventory was updated in ~~IIII~IIIIIII , June 2007 to reflect 2006 data 2006 GHG INVENTORY BREAKDOWN BY ENERGY SOURCE III~III~II~IIIII~III! using the city's Inventory Main- ~~r,df'ii ``'i` IIW~~II ~I~II~II~II~! ~ tenance System. The primary Vehicle Fuel data sources are community 22% electricity and natural gas con- ~III~II~ II~IIIII~II~ s sum tion from Xcel Ener CU Ei"'t"`-~; Iul p gy, ~ ~a ~II~I~ ~ operations and generation, an- - nual vehicle miles traveled Nnti.iral C~,i=, within Boulder from the city`s i4~io IIII II~~ u~~l ~I~I~I I~~~~~~~~~ Transportation Division, tans of garbage sent to the landfill, and offsets from the purchase of renewable energy, such as wind power and biodiesel. The system translates these inputs into ~ GHG emissions by sector and by fuel source. Overall, the city's energy use resulted in the release of 1,887,596 mtCOz. The pie chart shows the GHG emissions per source of energy and indicates that the vast majority of the city's emissions are a result of electricity use. ~ After experiencing declining GHG emissions from 2003 through 2005, Boulder experienced an increase in emissions of 4.6% in 2006. The 2006 levels are the highest emissions levels since 1990. The following graph depicts the current trends of Boulder`s GHG emissions based on energy source. It is important to note that the offsets depicted in yellow actually decrease Baul- der`semissions. They are shown at the top of this graph for demonstrative purposes. 2006 ACTUAL INVENTORY BY ENERGY SOURCE R 2,200,000 ~ 2,000,000 F^ ~.~*.1,,,~;~-~ ~ I ,800,000 y ~ -:,u:~+-.mow ~ I ,600,000 ar6et e j~ ~':r~+ii;;,,~;,,~,r, 1,400,000 GHGEmissionsT , _ 75rntCOz ~'M<l'..~~~ ,?}~~`;~~t.~. ~ I,200,D"0 Offsets r',~ . ~ 1,00.;=~-~-~ _ _ ~ Landfill Gas 800;='='=' Vehicle Fuel ~ 600,000 Natural Gas 400,000 ¦ E~ctricity ~ 200,000 0 ~ C 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 - According to Xcel's 2006 annual report to Boulder, total electricity consumption increased by 5.5% in 2006. Possible, but not proven, reasons for the increase are increases in air condition- ing from additional systems and longer use, increases in plug loads, and new construction of homes and commercial space. The 2006 increase was also impacted by a 9% increase in natural = gas use. However, there was also an increase in the amount of renewable energy purchased ~ either through renewable energy credit companies or Xcel's Windsource program. Transportation emissions peaked in 2002 and have since fluctuated below this level. However, emissions did increase by 2% from 2005 to 2006. Overall, it appears that efforts to reduce ve- hiclemiles traveled and encourage the use of alternatively fueled vehicles is helping stabilize to emissions in this sector. The community must reduce annual GHG emissions by 406,489 metric tons from 2006 levels by 2012 in order to meet the goals of the CAP. This represents a 22% decrease from 2006 levels. Commercial buildings and industrial facilities continue to be the largest source of emissions at 58% of the total. This year, the commercial, industrial and the CU sectors were grouped into ~ one category after it was discov- - ~ ered that Xcel had previously 2006 GHG INVENTORY BREAKDOWN BY SECTOR ' changed sector classifications for Residential various Boulder businesses and CU. 16% Gommerdal l Combining the sectors creates con- A sistency for future year to year Transportation - r comparisons. In 2005, the total for 22% - - the combined sectors was 52%. _ _ _ - Thus, these sectors had a 4% in- crease in the overall percentage of GHG emissions produced in 2006. sordv~~,-r 4% . ~ The chart shows the 2006 emis- lions breakdown by sector. 5~ ' t' r CLIMATESMART PRGGRAMS In general, the city acts as a facilitator to canned residents and businesses to existing resources, ~ R` to develop and implement policies and programs that fill important gaps, and to provide infar- ~ 8 motion to help the community make smart energy choices. Wherever possible, the city pro- e9 2 48 9 „~~k,~'~ motes existing external resources, such as Xcel's energy efficiency and solar rebates and state 5'~ weatherization funds. This approach is in contrast to providing direct financing or directly im- . plementing efficiency measures in private buildings. The city`s intent is to encourage and facili- ` ; tote private sector investment in actions to reduce emissions. ~ Many of the programs initiated in prior years were continued and expanded in 2007, and sev- _ eral new programs were added. As described in the CAP, the primary focus is on energy effi- _ _ ciency, followed by renewable energies. As directed by City Council, initial phases of implemen- tation focus on providing programs and servicesto support voluntary action to reduce emissions. w The need for direct incentives or regulations will be based on reductions achieved with a volun- ~ ~ tarystrategy. Funds contributed by Boulder County enabled expansion of several program areas ` without increasing the city's budget or tax rates. To maximize emissions reductions toward the 2012 goal, programs and very likely the CAP budget will need to be expanded in future years. The next sections will summarize the results of the 2007 programs. All of the listed programs are 3 _ planned for continuation and expansion in 2008 with some modifications to incorporate results achieved in 2007. ~ - 7- ClimateSmart At Work ` ` rti. ash. , ? ~ ClimateSmart at Wark is the umbrella name for programs associated with the commercial and ' 'f`'~,~i~F T ,~y J industrial sectors. As mentioned above, these sectors account for 56% of Boulder's total GHG ,s~' ` emissions; this number reflects a higher energy use per property than residential units. It is ` ,J! F iij~ critical that CAP staff work closely with the business community to reduce GHG emissions, while ~4 ~ ~.~e ;?'z,'; ~i ~ ' ~ ' ~ fi: at the same time supporting a vibrant business climate. All programs implemented under the ~;;1'~' ~'t`. ~ ClimateSmart at Work banner are intended to have significant impact on reductions in Boulder's : 1'"~,,~l~i ~ ~ GHG emissions. . Building Pertormance Program In 2005 and 2006, the Building Performance with Energy Star program, where Boulder provided free commercial energy audits and Energy Star benchmarking, was quite successful. However, in 2007 the program was updated to eliminate the Energy Star component and rename the pro- gram the Building Performance Program (BPP). This change allowed more funding for actual energy audits, which in turn are expected to lead to greater efficiency improvements. The pro- - - • , ri' / ` gram also focused greater emphasis on assisting businesses with the actual implementation of recommended energy efficiency improvements. I A The BPP is designed to help local businesses and contractors identify energy saving opportunities and receive utility rebates for efficiency projects. This level of service is not offered by Xcel or any I l~ other entity in Boulder. The program's primary objectives are to increase efficiency in Boulder's commercial buildings, raise awareness of utility rebates, and better understand the energy-relat- , ~ ed support needs of the commercial sector. The BPP is administered by a local contractor called Nexant, and has three main areas of focus: energy audits, a trade ally networl~ and outreach. ~ Energy Audits ~ 1 ' ~ The main component of the BPP is the energy audit. Nexant performs a site survey and walk- ~ through of commercial facilities to analyzethe main energy uses and opportunities for improv- ~ ~ , ing the energy efficiency of the facility. Renewable energy opportunities are also evaluated. A detailed report is delivered and a follow up meeting with the customer is scheduled to discuss ~ , . the report and energy efficiency opportunities. Both Nexant and the city maintains contact with the businesses after the audit and follow up meeting to offer ongoing project implemen- ~~,;A tation support. j r~~t. r~i.. ,:hj r' I, J " ~ ~ [ Trade Ally Network - _ _..1~.--~'""" ~ Ta help connect the businesses with qualified contractors who can implement the recam- 1l1~11 mended energy efficiency retrofits, a Trade Ally Network (TAN) was developed in 2007. The uuuui TAN consists of heatin /coolin , li htin ,and solar contractors who rovide service in the ® Yli~ g g g g p ~ Boulder area. These contractors are encouraged to promote the BPP which in turn increases their business prospects, while the city promotes the TAN by providing a contractor member list to all audited businesses. r Outreach - i ~ t The BPP was marketed and promoted to the business community through many different F_ ' ~ channels. CAP staff worked closely with the Chamber of Commerce to present a number of workshops on topics including the BPP program, Xcel rebate programs, commercial solar op- ~ tions, and the Trade Ally Network. Staff also completed presentations at a variety of business ~•':s~~a~`'-. i° groups including powntown Boulder, Inc., Commercial Brokers of Boulder, and Leadership y Boulder Count Other marketin strate ies included direct calls, direct and electronic mailin s, ~ v t,~. and local advertising. Print ads included recognition of all 2007 BPP participants and two case ~ 'j'~ ~ ~ ~ studies of savin sex ected b two local com anies who obtained the BPP audit and im le- „o g p Y p p • - is mented efficiency projects. ~ Resu~fs E ` • An initial target of 35 audits and an efficiency project implementation goal of 500,000 kWh ' were set for 2007. An actual implementation goal is believed to ensure a reduction in GHG • emissions. To focus the BPP goal on retrofits, the application process was changed to ensure ~ that a company`s financial decision maker was involved from the start, and extensive post- audit follow up assistance was provided. The results from the BPP show that the 2007 program was a success. The program achieved both of the established targets. The most common recommendation made during these audits was an upgrade to lighting systems. The table below shows a comparison of overall results ~ from the last three years. . ii ii. ii • BuildingsAudited 31 15 35 Potential Electrical Savings (kWh) 1,924,526 352,673 4,296,469 Potential Natural Gas Savings (Therms) 46,526 4,857 16,145 Potential Annual Energy Cost Savings $220,000 $17,888 $341,944 Estimated Capital Investment $800,000 $58,298 $3,436,804 Average Payback (years) 3.84 3.42 9.64 Potential GHG reductions (mtCO~) 2,575 348 4,05; The table reveals significant opportunities far energy savings. At the same time, there was an ~ increase in the average paybacktime. This is mainly duetothe inclusion of projects which tend to carry higher costs such as heating and cooling system replacements. . i~..~ Be1ow is a partial list of participants in the 2007 BPP program: • American Out- • MicroMotion, Inc. • SmartWool - door Products • Ocean First Divers • Tebo Properties - • Aweida Properties, Inc. . Penrose Building • Trinity Lutheran Church ' ~ - • Boulder College of Massage Therapy • Pruett Building • UNAVCO - ~ • Boulder Commu- • Railhead Properties, LLC • Vectra Bank ~ ~ nity Hospital • Ron Smaron Properties • Wall Street on Demand _ • Boulder Theater • Qwest • West Peak Building ~..J ~ ~ • Crispin Porter + Bogusky • Shining Mountain • Western Disposal ® • E-Source Waldorf School • WW Reynolds • As mentioned above, in 2007 actual results were sought by following up with previously audited businesses to offer implementation assistance. This effort has resulted in imple- mentation of energy efficiency measures detailed in the table below. fir" rr rr. rr ~ ` Implementing Businesses 7 5 3 ` Electric Savings Achieved (kWh) 83,269 142,321 531,710 ~ Natural Gas Savings Achieved (therms) 9,190 2,448 - GHG Savings Achieved (mtCOz) 130 145 490 Small Business Energy Performance Program Small businesses were underserved by the BPP because of its focus on facilities with greater square footage; this challenge was solved with a partnership with Boulder County to develop a ~ commercial energy efficiency program that focused on the small business sector needs of these communities. This Small Business Energy Performance Program (EPP) offers an energy audit for small business as well as additional implementation service beyond what was offered to the larger businesses. _ _ For efficiency measures the business elects to implement, Nexant acts as a general contractor by hiring subcontractors, reviewing bids, and ensuring proper implementation of the measures. By removing the burden of project management and implementation from the small business r owner, improving energy efficiency becomes more desirable. Results \ The table below details the results from the EPP. The audits had a more limited scope than the BPP to focus on measures with shorter paybacks (intended to encourage a high level of imple- mentation) but still found numerous savings potential. While no business has yet implemented efficiency measures, Nexant is currently securing bids for projects at three audited businesses. Small Businesses Audited 8 Potential Electrical Savings (kWh) 172,979 Potential Natural Gas Savings (Therms) 178 Potential Annual Energy Cost Savings $13,528 Estimated Capitallnvestment $51,034 Average Payback (years) 4.96 Potential GHG reductions (mtCOz) 161 Industrial Energy Efficiency Workshop l /i In December, CAP staff sponsored a workshop with the Colorado State Industrial Assessment ~?„y Center (IAC). The IAC provides numerous services to industrial facilities across the Front Range including audits, engineering assistance and trainings. The workshop was offered to Front Range ' industrial facility managers and covered topics including Xcel rebates, motor efficiency, com- ~ pressed air efficiency, and efficient clean rooms. Thirteen industrial facilities were represented at the workshop. Next Steps s The success of the 2007 BPP &EPP have spurred CAP staff to develop even more flexibility and f.~, " s options for the commercial sector. The energy audits provide a valuable resource to the com- mercial sector. An encouraging level of participation ensures this program will be expanded in 2008. However, an important outcome for this program in 2008 is that an energy audit trans- lates into retrofits and actual GHG reductions. The energy audits project the potential savings, but it is up to the facility owner to implement the suggested recommendations. In 2008, staff will focus on developing stronger relationships with the business sector to encourage and fa- cilitate the maximum number of retrofits possible. One goal for the program in future years, based on an identified need for more flexibility in service offerings, is to add more services to the core audit offering. In 2008, BPP will become ~ part of the ClimateSmart at Work commercial program suite and will offer an expanded level of service including workplace trainings, rebate assistance, and bid review. Also, as mentioned ~ previously, continuing to develop key partnerships will be a priority. The first priority is a col- `'J~~. laboration with Xcel and their commercial energy assessment program launched in October ~ ~`C ` 2007. To capitalize on Xcel's offerings, the 2008 ClimateSmart at Work program will incorpo- ~ Y rate the Xcel energy assessments (audits). This will allow city of Boulder tax dollars to be !iIR~ stretched further to offer more audits and other services to the community. ~ Additional collaboration with the IAC will bring more service offerings to the large industrial customers in the city of Boulder. Capitalizing on the IAC's expertise and contacts will help the y:• city design appropriate services for these customers. Finally, collaboration with GO Boulder and Partners for A Clean Environment (PACE) will lead to a comprehensive program that will provide a suite of services to help businesses reduce their _ carbon footprint. ' ClimateSmart at Home ' Residential Energy Audit Program (REAP) - The Center for Resource Conservation (CRC) administers the REAP in partnership with the city ' of Boulder, Boulder County, Longmont, and the town of Superior. The program provides low- cost, professional energy audits and energy conservation information to participating home- owners. The homeowner's cost is based on the home's conditioned square footage, and ranges from $100 to $250. The city of Boulder and Boulder County each provide a $100 subsidy for each audit, which is provided by local energy service professionals and includes a blower door test, insulation assessment, and appliance and HVAC system assessment. The homeowner re- ceives a report with an analysis of energy usage gathered from a history of utility bill data, a series of energy efficiency recommendations, and a list of qualified contractors to perform the _ recommended work. After the report is received, the homeowner also receives a survey to col- lect data about their experience and planned energy efficiency improvements. ~ Results ~ ~ ~ ~ 'y The first step of the REAP asks the homeowner to submit their utility bill data which is analyzed by the auditor and reviewed with the homeowner. The homeowner signs a waiver permitting the program to collect utility bill information one year after the audit in order to measure ac- tual changes in energy consumption. Results are measured as soon as one year's worth of post- audit data is collected. The data is normalized for weather using 'heating degree days'. Data collected one year post-audit on the 15 homes that were part of the pilot in 2006 revealed 23% natural gas reductions and 21% electricity reductions. ® - - While the program has not collected information about which measures were implemented in these homes, it is believed that at least four homes installed solar electric systems and that the pilot participants Utility Bills as a are likely to be 'early adopters' (i.e. enthusiastic and Diagnostic Tool ~ ready to implement measures). Therefore, these re- Utilitybill history is an underutilized suits could be higher than what might be seen after source of diagnostic information a full year of regular program implementation. about household energy saving op- Following asuccessful pilot, 2007 was the first full portunities. This data provides a re- year ofimplementation with 224 audits completed in corded history of how much energy the city of Boulder. There were five energy profes- is actually being consumed by a sionals performing audits for the program. Each visit house. By analyzing this informa- tion along with some basic charac- was preceded by a visit from the CRC program man- teristics of the house, energy pro- ager who completed an initial utility bill analysis, per- fessionals can easily identify formed a thorough inventory of all the energy loads opportunities for savings before in the house, collected basic household information even visiting the house. (appliances, systems, characteristics of the house), ~ , distributed compact fluorescent light bulbs (CFCs}, and a packet of educational information includ- ing a list of contractors qualified to complete the work typically recommended. ~ A standardized reporting database is under development and will improve audit report compari- sons. Arandom sample of the 224 audit reports for 2007 reveals that insulation and air sealing are - thetoptwo recommended implementation measures. Beginning in thesecond quarter of 2008 the program will compile utility bill data from audits that were performed in thefirst quarter of 2007; these results together with survey results will provide data on actual energy savings and measures implemented. Evatuafron and Analyses CAP staff contracted with a local consultant, Synertech, Inc., to evaluate the REAP program. Synertech produced a detailed report analyzing various components of the program: the audit, analysis tools, information distributed, audit reports, and contractor training. The primary rec- 1 ommendations were to: • Optimize the effectiveness of the technical audit process (tools used, tests conducted, and ' organization of thevisit). • Improve reporting format and include information on estimates of anticipated costs and re- sultant savings. ' • Improve the utility bill analysis section to include a breakdown of fuel types and carbon equivalents. S • Add a printable worksheet to the report that allows the resident to set goals. • Update some of thetechnical information in the literature distributed. • Implement quality control in contractor recommendations and training and certification for contractors. ~ ! - • Expand the scope of the program to include townhouses and apartments. - _ These recommendations were taken into consideration in the last part of 2007 and will be im- plemented further in the 2008 program design. To view the complete report by Synertech, visit - ' www.environmentalaffairs.com. ~ IUexf Sfeps A few key program improvementswill be made based on experience and evaluation of the 2007 ~ program. The program will transition from providing apre-audit visit to conducting an in-depth phone consultation with the resident discussing areas of concern and collecting data priortothe j technical audit. The time spent at the home by the technical auditor will be extended, allowing M'~ ` them to conduct education both during the audit and after the audit. This change saves green- ` house gas emissions associated with two vehicle trips and saves time forthe homeowner. •,~~;:-f~µ~~-';Y-- , . In order to provide a more comprehensive list of local contractors available to perform specific _ ~ - energy efficiency upgrades, the CRC released a Request for Information (RFI) to local contractor networksand other outlets in the fall of 2007. The RFI asked local contractors to provide de- tailed information about their services, pricing, certifications, training or other relevant qualifi- cations. This information will be published in an expanded contractor referral list so that hom- eowners may make informed decisions while selecting contractors. The RFI also requested applications from new, qualified energy auditors in the community to contract with the REAP program. In March 2008, the CRC will announce an expanded number of auditors participating in the program. ~ ~ CAP staff hopes to expand the contractor network into a trade ally network in 2008, working ~ \ ~ with other local organizations such as the Boulder Green Building Guild and E-Star Colorado. The networkwould be a forum for contractorsto share information, attend trainings, and com- mit to working with ClimateSmart to meet the program's goals. In addition, a need for consistent reporting was identified, both for the resident's benefit and for program managers to collect program information and track results for oneyear after each audit. A database to be completed in 2008 will allow the REAP program to generate reports summarizing recommendations, average payback and energy savings potential, and analysis showing actual results one year post audit. Each auditor will have access to a license of the software to standardize reporting in the program. Lastly, the Governor`s Energy Office (GEO} is offering a matching grant for an insulation and air ~ sealing rebate program. The city will apply for funding and incorporate this incentive into the audit program, requiring an energy audit as a prerequisite for a rebate. ~ ~ ~ Neighborhood Sweep i Inspired by direct install programs across the country and a successful 2006 Boulder pilot, the ~ city of Boulder partnered with Longs Peak Energy Conservation (LPEC) again to coordinate the ~ ` ~ 2007 ClimateSmart Sweep during October, national Energy Awareness Month. The Sweep dis- M~ tributed free energy and water conservation kits door-to-door in Boulder's Martin Acres neigh- / ~ ~ boyhood, targeting an 800-home area. With help from volunteers and student workers from ~ ~ ~ the University of Colorado at Boulder`s (CU) Environmental Center, 350 kits were distributed ~t ,ti' ::K along with energy conservation and sustainability information. The kits contained CFLs, water _ reduction aids, energy and water conservation information and a card offering the resident an opportunity to sign up for a free ClimateSmart Visit (CSV). _ ~ Improved aspects of the 2007 program: s , ~ • A consistent template for the educa- - tional materials which incorporated Whole House Energy Monitors - up-to-date information and data col- . Whole house energy monitors provide instanta- _ _ lected from a variety of sources in the neous feedback to homeowners by connecting community. into either the house's breaker box or the elec- ~ ~T" ~ • A menu of educational materials avail- tric meter. The device sends wireless informa- able was shown to the resident who tion to a display visible inside the house. Most could then select topics of interest. This models provide instantaneous electricity use - approach saved paper and allowed the along with expelled electricity costs. As appli- ^ ~ resident to choose the information they antes, lights, and other electrical loads are ' ' wanted. turned on and off, the display reflects the E' - =;e_::: ~ • Volunteers and staff delivering kits in- household's energy draw from the grid. Existing tegrated a direct install component to studies show that providing direct instanta- ~ ~ the kit delivery by offering to replace neousfeedbackon household electrical demand incandescent porch lights with a CFL. can reduce energy consumption by 10-15%. • Each kit offered a resident four CFLs. The city is piloting the installation of these in To receive an additional four, the resi- the CSV homes and will implement a loan pro- dent was asked to remove four incan- gram for these devices in 2008. see www.envi- descentsfrom their home, almost en- ronmentalatfairs.com for more information. curing a direct install of four CFLs by the resident. • A more in-depth ClimateSmart Visit (CSV} was offered on a first-come, first-served basis for 80 households visited through the Sweep. At the CSV, LPEC-trained staff conducts amini-audit pro- viding key energy efficiency recommendations, provides educational information to the resident about how their home works (ex: programmable thermostat, water heater temperature, etc.}, and loans a whole house energy monitor to the homeowner see side box on previous page}. Affordable Housing Partr~ership y ClimateSmart Kits were assembled and delivered to two affordable housing agencies in Boul- der, Boulder Housing Partners and the city of Boulder`s Department of Housing and Human ~F Services (HHS). At Boulder Housing Partners, the ClimateSmart Kits were distributed to tenants _ _ as they moved in, as a welcome gift basket. At HHS, the kits were given away to participants in home ownership classes through the affordable housing program. These kits had identical ~ ' contents as Sweep kits but did not offerthe CSV. ~ , ' ~ ' ~ ~ Sweep Kit distribution 1'~~R ~ A total of 34 volunteers knocked on 800 doors and distributed 350 kits. 109 of those kits con- yl! r~ x ~ M~ ~ .~f~~ tained four CFLs, and 241 kits contained eight CFLs, for a total of 2,364 CFLs distributed. A i. - - 1 total of 489 incandescent bulbs were decommissioned through the CFL swap. The average kit 1 - {,T ~ ~ • recipient received 6.75 CFLs a nd gave u p 1.4 i nca ndescent bulbs. ~ • `^~-s= 1~ , • Resident at-home rate: 44% ~ • Bulbs distributed: 2 364 • yid • Total electrical savings: 1,016,520 kilowatt hours (kWh) ~__~y' • Total energy cost savings: $92,503 'i • COz emissions reduction: 939 mtCOz ~~7~~' Resident Feedback ~ " The method of acquiring feedbackfrom residents was to include postage-paid comment post- cards. We received 21 responses, a response rate of 6%. • 76% owned their homes, 33% were 2-person households, 14% were 1-person households, and 14% were 3-person households. - • 67% of the correspondents were expecting the Sweep visit because they had seen advertising _ yard signs or heard about it through the Martin Acres Neighborhood Association (MANA). / - • 76% of the respondents said the visit was very useful. f / • 71 % said the visit helped them learn more about energy and its environmental impacts. • 95% recommended that the city of Boulder distribute more kits. • 52% installed more than 7 bulbs from the kit. r Affordable Housing Kits ~ ~ - • • ~ • 300 kits were delivered to Boulder Housing Partners. If all of the bulbs are installed, residents - ~ ` ' will save 1,212,000 kWh over the life of the bulbs. This re resents ever cost savin s of •t i •i ~ 4' $110,292 at today's electricity prices and an emissions reduction of 1,119 metric tons of COz. .~~s_+ ~ • 181 kitswere delivered to HHS, who distributed them to participants in their affordable home :-,Y ' s ownership programs. If all of the bulbs are installed, residents will save 731,352 kWh of elec- ~ _ ~ ,~'co'~`' ` A tricity over the life of the bulbs. This represents energy cost savings of $66,553 at today`s ' electricity prices and an emissions reduction of 675 metric tons of COz. ~ . ~ ClimateSmartVisits (CSV) and other results ~ ~ - ~ • LPEC be an conductin the CSVs in December 2007. At the time of this re ort, as onl 11 of the 80 visits were completed, it is too early to report results. Below are recommendations from the _ ' 11 visits: r , f Q y Wall Insulation 11 Attic Insulation * ~ 8 ~ Afr Sealing 6 - .I Replace Refrigerator 6 Replace Furnace 5 • - ~ = Duct Sealing 3 _ "~_'_-~-T „fx. ~ Other results not quantified at this time include energy reductions associated with showing `y people how to use their programmable thermostats and other tips such as how to reduce en- l "~y ' .w~l ~ ergy use in the summer without air conditioning. The emphasis for the CSV is to make reason- ~ ~ able goals for energy conservation and efficiency and fit them into the resident's existing plans r `f r ,.,«e-":' ~ 7lY } 7F ~ -..t. n for remodeling, moving, or retirement. Lastly, interested residents receive a loan of a whole , house energy meter (see side box on pg. 12) for two months along with educational informa- tion on how to interpret data and realize energy saving results. LPEC will collect utility bill data , `~~~4.:~ . to measure results. ` ' ~ ' • { ; y"S O .ro ~ Nexf Sfeps;~,r_ ~ - - Overall, this popular program is regarded as successful. Resident and volunteer feedback has - ~ ~ ~ •c; Y been very valuable and will inform planning far 2008. There are several improvements planned far 2008, such as increasing visibility, reducing per unit costs, ensuring the program is simple ~ _ yet effective, building an community strengths and past experiences, and exploring other elec- ® ` - tricity-saving devices besides CFLs. The neighborhood chosen for the 2008 Sweep will, as in past years, represent an area with alder, typically energy inefficient homes. ~ puring the 2006 Sweep, 63 pilot homes received a one-hour fallow-up energy audit. In , these homes, the tap recommendation was to increase the amount of insulation. LPEC has ~ - begun a pilot program surveying the recipients of these audits to understand which mea- sures were completed and plans to offer incentive rebates far insulation installation and duct sealing. _ Home Pertormance with ENERGY STAR (HPwES} HPwES is a nationally recognized program developed and supported by the ENERGY STAR pro- gram to support a market farwhale-house retrofits. The aim of the program is to increase the energy efficiency, comfort, and durability of homes using a holistic approach to building sci- ence that addresses the building envelope, heating and coaling systems, and appliances. In 2005, the city of Boulder partnered with the Fort Collins Utilities, E-Star Calorada, Colorado Springs Utility, and ENERGY STAR to offer technical training an home energy analysis and sys- tems-approach retrofits to three area cantractars. In 2007, Boulder partnered ante again with E-Star Colorado, ENERGY STAR, Fart Collins Utility, Colorado Springs Utility, Johns Manville, and Camfart Air to provide another round of training to local cantractars. A large effort was placed an contractor recruitment and qualifications to ~ ensure cantractars would be successful incorporating building science and home performance ~ ~ into their business models. The recruiting process was a tremendous success that brought a ~ ' high level of knowledge, experience, and dedication to the training. ~ ~ - E-Star hired Saturn Resource Management far this round of training, which included an online training tool. Therewerefive classraam days and four field training days covering building sci- _ ence principles, blower door measurements, moisture management and ventilation, a home performance assessment checklist, performance modeling and sales strategies. The field train- - ing days covered work in three different homes, completing assessments and installing home performance improvement measures. The combination of classraam and field training proved to be a successful method far teaching this camplextapic, combining theoretical concepts and hands-an experience with real world scenarios. A nationally recognized Energy Analyst certification by the Building Performance Institute (BPI) was incorporated into the training. Cant ractars completed bath a classraam and field exam to receive this certification. Lastly, the cantractars are in the process of completing five projects with a mentor representative from the program, which involves comprehensive audits at five homes using the ENERGY STAR tools and analysis techniques. Resulfs Seventeen campaniesfram Boulder, Fort Collins, and Colorado Springs committed to the train- ' ing program. Each company was offered two spats in the training. In total, 34 cantractars were in attendance. Included in these numbers were four existing Hame Performance (HP) cantrac- tars returning far additional training. Of these cantractars, thereweretwelve participants from Boulder representing eight companies. These professionals are now equipped with knowledge and tools to conduct HPwES analysis in their work. The city of Boulder recognizes the importance of training and increasing the num- ber of local, qualified contractors to implement high quality energy efficiency improvements that will support the CAP goals. As energy efficiency continues to be a growing concern with regard to existing hauling stack, the city of Boulder will continue to financially support contractor training and education and will callaboratewith key partners in government agencies, non-profits, and utilitiesthroughout the state to further support this market transformation. Nexf Sfeps ' ~ ~ Plans to collaborate with E-Star Colorado in 2008 include a scope of work with the fallowing goals: • To support existing HPwES-trained contractors and demonstrate the validity of the HPwES ~I 1 performance contracting approach in Colorado. ~ ~1, • To complete 200 HPwES projectsthroughout the Front Range (an average often projects per ` ~ ' trained HP contractor). ~~k • To monitor and maintain the integrity of the program. - ~ - • To attract new funding that will support program growth in 2009. - Some strategies to achieve these goals are to: ~ • Coordinate program promotional activities among E-Star Colorado, program sponsors and ' contractors. - - • Document results of HPwES projects. • Promote financing opportunities for HPwES projects through regional funding opportunities. Additionally, the city will work to continually promote HPwES contractors through other exist- ing programs and organizations, such as the REAP and Boulder Green Building Guild. Plans also include the gathering and publication of quantifiable results into HPwES case studies. t~ Multifamily Housing Energy and WaterAssessment Program In 2007, with support from the city`s Water Conservation Office, the energy and water effi- ciency program for multifamily facilities realized significant progress over 2006. This program was named the Multifamily Performance Program (MPP) and was administered by the Brendle _ Group. The multifamily housing program is an important one as approximately 55% of the ~ ~ Boulder residents live in multifamily dwellings. The objectives of the program are to increase the ,~w -w energy and water efficiency of the buildings and reduce utility costs for residents. The program ~.'t"'' "r a'' , g also seeks to better understand the utilit usa e, savin s otential, demo ra hits, and needs of Boulder`s multifamily housing stock. ~ ~ - ~ 4$;,, The program had a 2007 goal of providing free energy and water assessments to 15 multifam- i,~+~~} ily buildings. Staff promoted this program through press releases, outreach to the Boulder ~ ~ i a r`~`^~ County Rental Housing Association, and direct contact with property managers. ,,fir J`' . .ti,. Resulfs ~ The 2007 MPP performed energy and water assessments at 13 facilities. These facilities varied : from apartment and condo complexes to assisted living facilities. While it is a benefit to serve so , ; . , many different types of facilities, the main challenge with the program is the variety of facilities. ~ Y For example, some buildings are managed by property managers, while some are managed by an HOA. Same have combined heating/cooling, while others have individualized heating/coal- ' ing. Nevertheless, the program hasfound great potential for energy and cost savings. The table ` below details the results: r Facilities Audited 4 13 Potential Electrical Savings (kWh) 96,220 614,240 , Potential Natural Gas Savings (therms) 13,666 37,373 , ~ , . J , ~f. Potential Water Savings (gal) ' 2,846,400 4,391,800 ~ ' ~ ~ Potential Annual Energy Cost Savings $33,897 $104,110 Estimated Capital Investment . $59,190 $319,295 ; Average Payt~ark (years) 2.33 2.78 fir 'i Potential GHG reductions (mtCOz) 168 766 - .,dl s lUexf Sfeps This program will continue in 2008 with a goal of completing 15 energy and water assess- ' menu. As with our BPP, a primary goal is to facilitate the actual implementation of the audit reports` recommended energy efficiency measures. To that end, past-audit follow up with fi- ~ nancial decision-makers will be strongly emphasized. An outreach program to reach the audited buildings' residents is in planning stages far 2008, and will entail door-to-door visits to provide conservation information and energylwater saving de- ~ vices. A staffed ClimateSmart outreach table will be arranged far some of the larger buildings. ~ ~ Weatherization Program Program Design The city of Boulder contracts with LPEC to offer free weatherizatian services taintome-qualifying, owner and renter-occupied households not served under the existing countywide weatherizatian program. Sample measures include installation of CFLs, additional insulation, programmablether- mastats, duct sealing, furnace repair and replacement, refrigerator replacement, and a combus- tion safety inspection. Under this program in 2007, 20 homes were retrofitted with a variety of energy efficiency measures - an increase of 100% from 2006. This table summarizes the energy retrofits that were completed at the 20 properties through a "i r~ the city`s weatherizatian program in 2007. In 2008, the program will report actual energy sav- ings achieved by these measures through utility bill analysis. i ~ a . Attic insulation 6 ~ ~ Wall insulation ~ 5 IE r ~ Foundation perimeter insulation 4 1 ENERGY STAR furnace upgrade 5 _ ENERGY STAR refrigerator upgrade 5 P putt sealing 11 ~ ~L- _ Compact fluorescent light bulbs 19 - ~ Programmable thermostat ~ 4 Window storm or replacement 7 f Mist measures 20 r._ ~ *exam~les-water heafer rreaurtef,tc, air irlfiluariofl sealiflg, wesrfrer ~7ripplfx~, comfx~stiof, safety tesffng While it is difficult to attribute specific energy savings data to certain weatherizatian improve- - - : ~ n menu such as added insulation, it is estimated that 50% of the average home's energy demand ' is from heating and cooling. One of the most effective ways to reduce these energy loads is to have adequate insulation and sealed ducts to prevent heat loss in unconditioned spaces. - " The furnaces replaced through the weatherizatian program were 60-65% efficient. The replace- ~ ~ ment ENERGY STAR furnaces are rated 90% efficient. This level of increased efficiency can save 15% per yea r i n natural gas casts. r`"-'' • . ~ Over 323 CFLs were installed in the homes serviced through this project, an average of 17 per ~ house in 19 homes. This energy efficiency measure saves 177,650 kWh overthe life of the bulbs ~~r I ~ and prevents 164 mtCOz from being released into the atmosphere. The response to this program in 2007 was successful due to ClimateSmart and LPEC's outreach - and marketing efforts and an increase in maximum annual income qualifications fora ane- ~ person household to $47,000. By pecember 2007, a waiting list for 2008 was generated. 2007 was the first year this program was opened to renters, a decision intended to address the chal- ~ lenge of split incentive between landlords and tenants. Half of Boulder`s housing stock consists of rental properties. As only one household weatherized this year was a rental property, market- ing efforts in 2008 will target mare rental properties. ~.i ti Previous Year Resuifs ~ In 2007, the program collected utility bill data from 14 homes that were weatherized in _ 2005-2006. This data provided actual energy savings achieved in these homes as well as simple _ payback. The results are shown as totals for the 14 homes; the simple payback result is an aver- _ age of the 14 homes. - Results from Utility Bit! Analysis of 14 homes Weatherized in 2005-2005 Annual Gas Saved {therms) 3112 Annual Gas Savings $ 2,894 - Annual Electricity Saved {kWh) ~ 1533 ~ ~ Annual Electricity Savings $138 - Retrofit cost ~ $38,041 ~ Average Simple payback (years} 12.5 GHG gas savings {mtCOz) Annual 16.5 ~ - - GHG electricity savings {mtCOz) Annual 1.4 Since greater energy savings opportunities exist in homes with high consumption, the pro- gramcoordinator recommends targeting homes that show high energy consumption usage where more cost and energy savings are likely. A possible way to approach this is touse -"~i~ pre-weatherization utility analysis to plan retrofits and limit expenditures where energy consumption patterns appear to be relatively low. Additionally, developing techniques to evaluate and address consumption in homes where electrical load has higher potential for savings than gas consumption might improve this program. iUexf Sfeps L y~ ` In 2008, this program will continue at similar funding levels. Some program changes may in- volvesharing the cost of replacement furnaces with the resident to allow the program budget to serve more homes, to seekfunding for appliancesthrough Energy Outreach Colorado, and to include general education on household transportation and greenhouse gas emissions. The primary goal will be to target homes with maximum savings potential and focus an innovative ways to address electricity reductions. ~ LED Holiday Light Exchange In response to the increasing availability and popularity of LED holiday light strands, the CAP team organized a LED holiday light exchange. LED light strands use approximately 90% less - electricitythan traditional, incandescent strands and this program was seen as a great opportu- nity to reduce energy use during the holidays. As LED strands are relatively expensive, they were offered at a reduced price to Boulder residents who exchanged a working incandescent strand for each LED strand. This exchange ensured that each incandescent strand was removed from use and a recycling program ensured that all strandswere properly disposed of. This program was initiated as a pilot with about 700 strands available for purchase. However, _ ~ community turnout at the event was remarkable and it soon became clear that demand for these products was extremely high. About 300 residents were turned away but CAP staff was able to secure another shipment and more than 1500 strands were eventually exchanged. This ~ ~ event was a great win-win opportunity to showcase the city's efficiency goals, and community i ~ members were pleased to save both money and energy. A larger program will be planned for 2008, most likely to include local retailers. ~ Results: • 1,577 strands exchanged • Approximately 400 households served • 12.5 metric tons (27,480 Ibs} of COz emissions avoided Shanahan Neighbors for Climate Action . In South Boulder; over 125 households in the Shanahan Ridge Neighborhood have formed ~ I Shanahan Neighbors for Climate Action {SNCA), a grassroots neighborhood organization ded- icated to creating a strongly connected community working together to foster a sustainable future. SNCA is a fantastic model of the power of a community coming together to support a common cause. The neighborhood group has self-organized to create a campaign focused on reducing GHG emissions. Shanahan neighbors are pioneering the way for what is possible for ~ i neighborhoods -and other groups wanting to make a tangible difference - to accomplish. SNCA's approach to reducing emissions is focused on three strategies: ` ~ • Fostering a strong sense of community, and using this to encourage environmentally sustain- able practices. Providing a forum for the exchange of ideas and information related to human impacts on t the environment. • Creating a program focused on reducing the neighborhood's GHG emissions with a target of 22% below 2006 levels, in line with the obligations of the Kyoto Protocol and the city of Boulder's ClimateSmart campaign. ' The ClimateSmart campaign is excited to support groups that are organizing around energy awareness. This support ranges from funds for printing materials to staff presentations about ~ energy conservation, efficiency and other ClimateSmart programs. Staff recognizes the integral role that neighborhood groups can play in the overall effort of GHG emissions reductions in Boulder. " Green Heart Institute As SNCA began to organize, the city connected the program leaders with the Green Heart In- SHANAHAN NEIGHBORS ,1,_ , torCLIMATEACTION i~5 stitute {GHI) to pilot a carbon reduction program in the neighborhood. The GHI is an educa- tional program that teaches individuals, organizations, and communities {including neighbor- ~o~,m°n,, hoods and faith communities) to reduce their environmental impacts through conservation, "'°`"°U`°" - increased energy efficiency, and use of renewable energy. The goal of the program is to support ~~~.~a,~,°''= people with efforts to reduce their carbon footprint and expenses associated with energy con- sumption in homes, businesses, and places of worship. The GHI program performs an Eco Audit'"", collecting data about a participant's home includ- ing size, age, appliances, and heating and cooling systems. Other variables such asvehicles and mileage driven, number of people in the household, temperature, monthly electrical usage, natural gas consumption, gasoline, flight miles, pounds of trash, and recycling are also re- r. corded. The GHI program uses customized software to compile this data as well as track future ~ - energy bill data. The program also keeps track of any carbon offsets that participants purchase, ~ as well as other carbon reducing activities people have chosen. GHI collects at least twelve ~ historical months of energy bill data to achieve a participant's baseline, and then collects the ~ data monthly, tracking and comparing year-to-year changes. ~ ~ .q - ~ Initial Implementation and Pilot Results Together, GHI and SNCA developed a volunteer committee to promote the program and to _ . } ~ enlist volunteers to learn to perform the Eco Audits. GHI provided training for the volunteers - P'., on the software program and Eco Audit techniques. The GHI provided Eco Auditor training in ~ three, 3-hour classes, which included these key steps: - - ~ ~ • Sustainability education, focusing on supporting individuals and the process of change; • Educational presentation and software use; • Recommendations and consulting. . , Throughout March, April, and May of 2007, volunteers and staff from GHI provided Eco Audits - ~ for 28 families, collecting the baseline data and providing a report and recommendations. Dur- ing this time, the web tracking became available on-line and GHI began collecting the house- ~ ' . , hold data for each month. After 2.8 months, results for 23 of the 28 artici ants have been p p ~'"~"~-`•r""` compiled. The same months of energy use in 2006 were compared to the same months in " 2007. Preliminary results Shaw an 11 %cumulative reduction in greenhouse gas emissions, with a few participants reducing up to 18% including reductions in airline flights. OEA contributed funds to support GHI's work with these 28 households. - Nexf Sfeps The GHI program continues to collect data from the 28 households involved in the pilot. Collect- D ing a full year`sworth ofdata post Eco-Audit and furtheranalysisinto actual efficiency measures implemented will allow further evaluation of this program and create strategies to expand this ~ O ~ ~ initiative in the community. GHI has plansto enroll 30 additional homes in the Shanahan neigh- C boyhood as well as engage in alarge-scale effort with 300 homes in nearby Lyons, Colorado. Other neighborhoods are using the SNCA model to organize around climate action. The newly formed Greenlands group in the Newlands neighborhood is one example. The city is currently communicating with this groupto support their efforts. 2008 plans include developing a neigh- borhoodlhousehold recognition program in 2008 to create awareness about these groups and inspire others to mobilize. Home Energy Makeover Contest The Energy Makeover Contest is a new and creative way to promote energy efficiency. Contest organizers award a major home energy efficiency retrofit to two inefficient homes in a highly visible demonstration of the dramatic energy reductions possible. The Energy Makeover Contest ~ ~ educates consumers about the whole-house approach, making it a promising promotional av- _ - ~ ',r,,~.~ ~ , i • enue for existing Home Performance with ENERGY STAR (HPwES) contractors -see page 14 for - ~ more information on HPwES. ~ Xcel Energy and the Colorado Energy Science Center (CESC), a local non-profit organization, ! II ~ have completed two contests over the past few years. The 2006 contest attracted 16,000 ap- ~ ~ - plications inthe Front Range of Colorado and thetwo winning homes reduced their natural gas ~ ~ I ~ - use by over 70%. ~r--- Benefits of an Energy Makeover Contest include: • Provides a demonstrable communication forum around energy efficiency. ~ • The contest entry process generates a list of pre-screened homeowners interested in energy ~ efficiency. ;rr ~ • Lead generation for energy retrofit work that Home Performance contractors can perform. , , M~ • Fosters industry collaboration among program sponsors, product manufacturers, retailers, and local energy efficiency companies working together to give the winning homes awhole- - house makeover that produces optimum results. Boulder Confesf Resu~fs In 2007, the city of Boulder's OEA and Water Conservation Office partnered as a sponsor of the contest to guarantee that one of the two winning homes would be in Boulder. CESC worked with the city and Xcel Energy to recruit sponsors willing to donate their products and services ' ..,1 ` ~ for two home makeovers. Applications to enter the contest were advertised through Xcel En- ergy`s utility bill inserts and the city's marketing and advertising channels. There were 500 ap- ~ plicants from Boulder. The most energy-inefficent home that met other program criteria was selected for the makeover. ,r ` The winning home was a 1200 square foot home built in 1902. A professional energy analyst i r~ ,r completed an initial analysis of the home, providing a list of recommendations. The analysis t~`• showed that the home's energy performance was 280% worse than one built to today`s energy ~ I'`•,r ~ ~ code. After improvements are made the home will be analyzed again to "test-out" (i.e. see the s, L"' ~ actual impact of the improvements). Improvements are scheduled to be completed in February 2008 and are estimated to be valued at approximately $20,000-$25,000. ~ ~ ~ ¦ ~ Improvements include: • Insulation and air sealing ~ • Installation of a tankless water heater • Installation of a high efficiency furnace , ~ ~ . i ~ , -~4;'. i 'New windows and window coverings _ ' • New doors - ~ • Complete lighting retrofit • Water conservation meaures such as low-flow toilets, high efficiency washing machine, and i ; low-flow showerheads. 1 aM a~ ~1~ ENER`` Nexf Sfeps ~ 1 ~ r STAR , In early spring 2008, the city will hold an open house at the Boulder home to showcase the ~f = sponsors and the improvements completed in the home. A detailed case study showing energy j' savings and the cost of each measure will be provided. After one year, utility bill data will be ~ collected on the home which will provide actual energy savings achieved. Lastly, the city is s working with a local energy professional to analyze the energy use data from the 500 appli- ~,~~,J I~`y cants to create an outreach plan to encourage these homeowners to complete energy effi- ~ s' ciency retrofits based on their homes' individual needs. - Lighting Program . Program Design ~ ~ Early in 2007, CAP staff attended regional meetings with representatives from utilities (both municipal, investor-owned, and cooperatives) and power producers from the Front Range to discuss a regional lighting program. Fort Collins Utility has run a successful lighting program for " a number of years. The Fort Collins program was studied and a regional Front Range collabora- tion was explored. The Front Range cities eventually decided to postpone coordinated market- ing efforts to the future, possibly launching a coordinated incentive program in 2008. , While Boulder did not participate in a regional effort, the city launched an efficient lighting F . coupon program in local hardware stores in October 2007, coinciding with ENERGY STAR's ;~~,,"•~r ~ Energy Awareness Month and taking advantage of Xcel's pSM lighting program incentives (see ~ ~ f= tilt; : page 5}. Co-marketing efforts between the ClimateSmart program and McGuckin Hardware, a ~ ` Sutherlands, Ace Hardware, and Table Mesa Liberty Hardware promoted the program, which provided an in-store discount coupon for the purchase of CFLs. The discount structure followed ~`..w `4~ a model from revious re Tonal li htin ro ramsthat roved successful; it was rovided in the p g g gp g p p i~,`,~ ~ store and each hardware store invoiced the cit month) for the rebate. The incentive offered v v ~ ~ \ the following discounts: $1.50/single bulb; $1.001 each bulb in a multi-pack, and $2.OO/spe- ~ cialty bulb. Resu~fs ~ Through this program, ClimateSmart helped incentivize the purchase of approximately 7,930 CFLs. 4,361,500 kWh will be saved overthe life of the bulbs and 4,026 mtCOz will be avoided. This program provided an average subsidy of $1.31/bulb. Some retailers offered an additional discount structure for CFLs, resulting in an even greater price reduction for consumers. t~exf Sfeps This program allowed ClimateSmart to continue building relationships with Boulder-based hardware stores, opening the possibility for future collaborations. Afuture possibility is the creation of in-store ClimateSmart Idosks that supply information on energy efficient products ~ and direct customers to shelf locations. Program plans for 2008 will eliminate the actual coupon, and the city's subsidy will likely be provided to the store to be used during their inventory purchasing process. The discount will still be passed on to the customer through the store's regular sale process but this method will save paper and administrative time and costs, and program results can still be measured through sales data. Program marketing would need to be more aggressive since the coupons provided the benefit of program awareness and recognition. In-store signs will still serve as a powerful incentive and awareness tool. Another need to be addressed in 2008 is local disposal options for CFLs due to their mercury content. Currently the Boulder County Household Hazardous Waste Facility is the only local op- tion far proper disposal. Having mare convenient locations around town could faciliate proper disposal of used bulbs and would serve as an educational tool about CFL disposal. In 2008, greater collaboration with Xcel's program could encourage promotions through a greater number of Boulder stores. ClimateSmart can subsequently fill gaps where incentives are not being offered in the community. Staff will also explore regional efforts and engage in part- nershipswhere there is a logical opportunity. Energy Green Teams The Green Teams were created in 1996 as a collaborative effort between OEA and the CU Envi- ronmental Center`s recycling program. Over the past ten years, this program has demonstrated an ability to improve the quality and quantity of residential recycling in predominantly student neighborhoods in Boulder. . ~ • This city/campus effort remains unique in the country. Its success is predicated on training I ~ ' student conservation leaders with accurate procedural information and providing them with ~ I `'•,i promotional materials. These leaders work in small teams, making face-to-face contact with ~ Q;'~ ~a~, fellow students living in Boulder neighborhoods with high concentrations of student-rented households. The past two years have revealed heightened interest in the Green Teams. A renewed emphasis } was thus placed on expanding the Green Teams to cover energy and water consumption in these ~ 7~ ~ ~ • _ ~ target households. City staff from OEA and Water Quality and Environmental Services partnered , f}~Y~ti y a~t~~ with CU Environmental Center staff to pilot an outreach program in 2007. The 'Energy Green ~,'t ~ T Teams were developed to support ClimateSmart consenatian and efficiency goals, and help ~ Y F d. "yam students make the connection between energy use and climate change. ' r ~ In 2007 the Energy Green Teams went door to door visiting off-campus students to provide lit- wf Y> . ~ erature, gather survey information, and install CFLs. The Energy Green Team includes the Envi- r ,v ~ ' , r>~" ronmental Center`s Energy Program Manager (PM), an Energy Team Coordinator (ETC) and Team ,~,r~t x ~f?; ~ • Members (TMs). The PM trained team members on residential energy and water conservation , and climate change, etiquette and techniques on speaking to residents, and installation of CFLs. , ~ y'~,'~~ra i°~T The PM also acted as liaison to ClimateSmart program staff, developed a strategy and plan far ? , ~ , reaching the Greek houses, and developed a brochure and content for Green Teams "Off Cam ;~,',r',} " ~ ~ ,\i pus Resources" website. ~ ~ ' ~ , , The ETC recruited and trained volunteers, produced and managed printed materials and other ,F~ ~ ' supplies, organized and scheduled literature drops, tracked achievement metrics, and accom- ~ ~ ; ponied team members on literature drops and direct installs. The TMs conducted literature ~ ` ~ drops by visiting residents in off-campus student neighborhoods and installed CFLs. The TMs ~'`;may also contributed ideas and feedback for program improvement. While visiting homes the TMs conducted a survey of residential energy use, awareness of efficiency measures, and desirabil- , ity of efficient housing. Resu~fs and Evatuafron ~ ' If residents were not home when the Energy Green Team visited, a packet of literature was left on the door handle. The two neighborhoods visited were Goss Grove and the University Hill district. Only half of the University Hill district wasvisited due to the large number of multifam- ~ 'r' ily units. This neighborhood will likely be completed in 2008. Below is a summary of the results ~t from each neighborhood: ~ r Goss Grove Hill district (about 50% complete) Literature drops: 275 residences Literature drops: 136 residences Contacts: 273 residences Contacts: 133 residences i Total residences (drops + contacts): 548 Total residences (drops + contacts): 269 Bulbs distributed: 275 Bulbs distributed: 129 Surveys administered: 158 Surveys administered: 41 The bulbs installed in the residences will save 185,840 kWh of electricity over the life of the bulbs and 171 mtCOz will be avoided. Over 200 surveys were administered, and results revealed some _ interesting findings worthy of mention (see box): ~ A few key design elements have contributed to the success of this program. For example, the - ETC provided strong leadership and organizational skills, had materials prepared and organized ~ ' in advance and was enthusiastic about the project - all of these factors contributed to the pro- l~ gram running smoothly. Additionally, the team members felt very strongly about their mission ~ F and they learned quickly and adapted their approach to visits as they gained more experience with the outreach. ~ The Green Teams felt encouraged by the appreciation they received from almost all the homes ~ they visited and they commented that providing free CFLs 'kept a lot of doors open'. The Green ~ v. ~ team students felt that other students responded well to them because they were students as - ~ k : well, finding them more willing to listen, ask questions and take seriously the information - - _ shared. A few areas recognized Initial Survey Results for improvement are the Of the households interviewed in the Goss Grove need to emphasize CFL Neighborhood: _ disposal options. Team members re orted man ' 92% are renters +n ~ p y • 76% are billed direct) b Xcel Ener for their electrici ; residents were unaware ~r • and natural gas of disposal options and . 62% already use some CFL bulbs ~ many did not know that ,',~y.°;~ ±t ~ • 36% do not use CFL bulbs ~ CFLs should not be thrown ~ ~ into the trash. Additional- Of the households that do not use CFL bulbs the a ; ly, the survey was overly reasons varied: time-consuming and be- • 29% because they have never heard of them ~ . cause the Personal Digital • 20% because they are too expensive Assistants (PDAs) used to • 46% because they just forget when buying bulbs record the data were old- Other Results: er, slow models, each visit • 72% considered saving money on utility bills very took longer, leading to important fewer overall home visits. . 62% said that concerns about climate change and global - Next Steps warming would be the most important motivator to use -s tip.; less energy, while 24% liked the money savings. - : This pilot program will continue in the first part • 56% stated that renting an apartment certified as energy ~4, ~ of 2008 to complete visits efficient by the city or county would be high on the list . ~ - ' - • ' ~ • ti. , of decision factors when choosing a rental property. u-~:.e;:-~ ~ planned for the University Hill area. Once completed, results will be analyzed and used to evaluate the program and to design new strategies to see that student rental units continue to reduce energy use. While student renters might not be ~ completely representative of all Boulder's rental housing residents, they can provide useful in- J' formation to help staff develop programs to address the split incentive between renters and r~ landlords. . Initial ideas from the first phase of this program: p~ r • Create a display for residential energy efficiency in the CU office of Off-campus Student Ser- 3k vices (OCSS). This well-trafficked office serves students searchin for off-cam us housin and ~'`e ~ r^'.- 9 p 9 ^ kp` r-" offers housing service such as addressing landlord disputes. A standing residential efficiency + ~ ~ K display would raise awareness of these measures among students getting their first off- campus housing. ® • Continue focus on proper disposal of CFLs and develop plans for easier disposal options. • Work with landlord/tenant associations to open lines of communication between tenants and Y" landlords on improving the efficiency of rental properties should be a strategy to achieve - ~"'~r~~ ~ these goals. y ^%;~tl~?"""`-~ • Investigate rental efficiency rating systems that could help renters make more informed choices. J . . i ClimateSmart On the Road ~ ~ _ The CAP identifies three overall strategies to reduce transportation nectar GHG emissions: reduce vehicle miles (VMT), increase the use of biofuels, and increase the aggregate fuel economy of r _J vehicles in Boulder. Work in this sector be an in Ma 2007 with the hire of a Trans ortation Sus- z. - tainability Coordinator. Initial workwasfocused on refining the GHG inventory and strategiesfor t _ ~ the sector, supporting fuel retailers interested in selling biofuels, and working with GO Boulder on travel demand management programs. f-,_ II f Establishing relations with key partners and participating in related initiatives was an important ac- tivity in 2007. Transportation GHG emissions are not confined to vehicles awned solely by Boulder - r residents. The transient nature of vehicular emissions demands a regional approach. CAP staff rep- resentation at the Governor`s Biofuels Coalition, Denver Metro Clean Cities Coalition and the Re- gional Ozone Stakeholders Group has ensured that the city's priorities are represented regionally. Reducing Vehicle Travel > _ Reducing VMT is an important strategy for reducing emissions and is addressed through imple- t~ e1 ' mentation of the Transportation Master Plan (TMP). The TMP is the city`s planning tool for in- creasing mobility by reducing congestion and enhancing travel options. As described in the CAP, developing all the TMP multiple transportation mode Action items will reduce transportation k emissions by approximately one quarter of the amount needed to meet the city`s emissions r goals. In order to enhance VMT reduction efforts, CAP staff has worked with GO Boulderto in- corporate GHG reduction strategies into existing and planned activities. ~ ~A ^.~~~'~a_ a6w~,_ . Staff also collaborated with GO Boulder on a pilot Individualized Marketing Campaign to facili- tote increased use of alternativetransportatian modes. Resultswill be collected and analyzed in 2008 to determine if the program should be expanded throughout the community. Another 44Y4ur1}a~tt4reduceY4uscas . project involves creation of a coordinated employer outreach effort that would simultaneously (CU2}t44tPr+nt• encourage participation in employee commute trip reduction programs, green fleet programs, AYtieas+~tdayhteek,bike,carpooti, public transit Yo vrork or scriool energy efficiency, water conservation, and waste reduction programs. Triissummer,considerawriolerious In 2008 the city will evaluate how individual VMT reduction programs contribute to the city`s evaporatirvecoolerinsteadotAG GHG reduction target. Programs such as the Business and Neighborhood Eco Pass, GO Bike Suywindpoweratvrww.cogreenpo Boulder and Community Transit Network all have an impact an reducing VMT. For instance, al- fteplaceyourli;ritbulbsviiYri75% though 250 new households enrolled in the Neighborhood Eco Pass program in 2007, associ- compa~tluorescents{cFLs) ated GHG reductions have not been estimated. This ongoing analysis will serve to inform pro- SAV~SxE4Aj~tor8oulder'scli launcri pa>~' at the city of Soulde g ra m a nd budget focus in 2008. park on september 8, zaa7. Improving Vehicle Efficiency , , Increasing fuel economy reduces overall fuel use, thereby reducing GHG emissions. The small cars initiative led b Cit Council in 2006 rovided a forum to discuss olicies and ro rams to . ` - - promote smaller cars. City Council is likely to discuss and prioritize these options in 2008. The - main goal of the CAP is to educate residents on driving habits and vehicle maintenance tips to : - ' increase fuel economy. Information on highly fuel-efficient vehicles and available rebates and _ ~ ~ >:a•, incentives is intended to assist residents with vehicle purchase decisions. These educational ma- terials are also shared with private business fleets and will be incorporated into the employer - -{d _s~ outreach program mentioned above. a ~ ~ ~ ~ t Research at a number of auto dealerships in Boulder in 2007 sought to understand what moti- vates Boulder residents to purchase a'green' vehicle (highly fuel efficient, hybrid, E85-compati- ~ ble or biadiesel-compatible) and to devisewaysto intent city residentsto buy efficient vehicles. ~ Initial findings suggest that customers who buy these vehicles arrive at the dealership already having conducted their research and ready to buy. The salespeople also conveyed that custom- ers not focused on the efficiency qualities of a vehicle are not concerned with the environmen- ~ tal, political or economic consequences of the amount of fuel their desired vehicle consumes. In , _ ~ an attempt to influence vehicle purchase decisions, CAP staff in 2008 intends to coordinate . _ events with local auto dealerships to assist in the on-site customer education of the benefits of available green vehicles. ~ - .tea _ ~ g. Increasing Supply and Use of Biofuels ~ As we acknowledge that VMT reductions alone cannot provide the needed level of emissions reductions needed to meet the 2012 CAP goal, increasing availability and use of biofuels could play a significant role in filling the gap. The debate over biofuels has engendered discussion ~ !ji among local residents as well as City Council. It is a charged issue that calls into question the ~ energy balance of producing the fuels, the amount of water needed to grow crops and refine the fuels, as well as the difficult in uantif in the effects of nitro en runoff and im acts on ~ a... Y q Y g g p ~ f worldwide food price and availability. At the same time, many leaders in fuel and climate re- search maintain that biofuels, specifically biodiesel and ethanol, are less carbon intensive than ~ the petroleum-based fuels they replace. CAP staff acknowledges that food-based biofuels are not a sustainable solution to reduce GHG emissions from local transportation. However, food-based biofuels are expected to be replaced in the near future with cellulosic biofuels made from non-food feedstocks and with impressive energy balances. The 2007 Federal Energy Bill calls for 21 billion gallons of cellulosic biofuelsto ~ be sold in the United States by 2022. It is important to increase infrastructure now so that the >r city can be prepared to meet customer demand for such fuels. - = • _ Biodiesel is currently available in Boulder and it is anticipated that through city assistance, E85 - ' (85 % plant-based ethanol and 15 % gasoline) will be available in Boulder in early 2008. Cur- - rently there are 4000 E85-compatible, Flexible Fuel Vehicles (FFVs) and 1500 biodiesel-compat- `~•j~ ii~',~ ~ ible diesel vehicles in Boulder. A partnership with the Governor's Biofuels Coalition and Boulder • • ' ~ i~;;'i~ County has been and will continue to be important to increasing biofuels infrastructure. Both ~ w.~~~.r~~6 entities are likely to provide funding support to gas stations wishing to sell biofuels; CAP staff 4..~' ~ works to facilitatethese support grants and will continuewith additional strategiesto increase ' the availability of biodiesel and E85 in Boulder in 2008. %~''~~-Y ~ Commercial vehicle fleets make up a significant number of total vehicles operating in Boul- t "Y~ ~ * ~ der, and there is a growing number of local organizations utilizing and benefiting from `'`T •'r ~ ~ ~ biofuels. Western pisposal began using biodiesel in its fleet in the spring of 2007. Boulder ~ ~ ',;r~ Valley School pistrict fuels its school buses with biodiesel. RTp ran a biodiesel pilot with SKIP ,,;f ~ ~ route buses for two years and the city has reached out to RTD to encourage the continued use of biodiesel. Currently RTp is focused on diesel electric hybrid technology and may con- ~f~, S cider using biodiesel again when the fuel industry agrees an a consistent industry-wide fuel w ~ ~ quality standard. ,y 4 Education and outreach about sustainable travel for Boulder residents and businesses is an ~ ~ important component of the CAP implementation strategy. Primary outreach messaging to ~ti~ ~ ~ encourage use of biodiesel and ethanol includes how to identify an E85- compatible FFV, a re- ,.a ~ ~ :,t ~ minder that ethanol is produced in the U.S., and that ethanol is less carbon intensive than ~r ~ ~ - . = - gasoline. For biodiesel, the messaging is that all 1993 and newer diesel vehicles have been ap- r ~ ~ ~ a proved to run on 5%biodiesel (B5), that higher percentage blends have been shown to perform without problems in most diesel engines (because the fuel is cleaner, engines run smoother), ! ti~ and that biodiesel is less carbon intensive than regularfuel. ~ ~ 1Uexf Sfeps `a CAP transportation efforts in 2008 will focus on expanding education, outreach and biofuels infrastructure efforts. CAP staff is also evaluating the GHG reduction potential of policies not outlined in the CAP such as a city-wide biofuels standard, vehicle registration feebates, the proposed Colorado Clean Cars standard, and the role of transportation GHG in the land use planning process. Aswith all CAP programs and services, this GHG reduction analysis may result ~ in adjusted work plans to maximize achievable reductions. ' _ Marketing, Outreach and Communications ~ Robust and sustained marketing, education, and outreach programs are necessary to create ,,~_,R , awareness of the community-wide challenge and to garner widespread support and behavior - change. Marketing strategies are included in each sector`s programs. official marketing efforts began in April 2007 when the Marketing and Communications Coordinator funded with the CAP tax was hired. A strategic marketing plan was created to identify chart term and long term needs and priorities; the plan is updated twice each year or as needed. The three main market- _ a ing goals far 2007 were campaign branding, program marketing and communications, and community outreach. Branding the Climate Action Plan Between April and August 2007, staff worked with Vermilion, a local communications firm, to execute campaign branding. ClimateSmart (also the name of the November 2006 ballot mea- sure) was selected as the campaign name, and a color palette and logo were designed. A Cli- mateSmarttable display for all outreach events fully brands the campaign name and contributes i tothe brand "stickiness" factor. The new branding paved the way for development of the Cli- mateSmart website, program brochures, local print and bus ads, radio, and other communica- r', tions initiatives. The ClimateSmart brand and programs are intended to symbolize the city of * Boulder`s response to climate change, and to foster awareness of available programsfacilitates ' residents` and businesses` ability to reduce GHG emissions. _ The city of Boulder has embraced Boulder County's participation in ClimateSmart and has made j an effort to include all local communities, and to develop a regional collaboration through the Consortium of Cities. As of late 2007, five municipalities had expressed interest in using the - ~ .i ClimateSmart brand to market their own local energy sustainability initiatives. Boulder County ~ '7` committed funds in 2007 for ClimateSmart administrative and implementation costs and mu- nicipalities will pay fortheir own printing and media costs in 2008. ,„i~ Marketing & Communications A key strategy of the CAP is effective marketing of programs and initiatives to inspire voluntary ~ behavior change and investment with regard to conservation and energy efficiency and pur- chasing choices. Fundamental to this effort isthe ability to link personal actions, such as driving and home energy use, to climate change and energy sustainability. The goal is to make this link ubiquitous and sustained in the Boulder community, such that there is a constant reminderthat i 1021 C climate action is in large part the responsibility of individuals through their behaviors and pur- ~ chase decisions. The ClimateSmart website was launched in September 2007. As of pecember the mast visited web pages were the carbon footprint calculator and the online pledge (to reduce carbon foot- print).The calculator, which allows residents to calculate their annual carbon dioxide (COz} emir- lions based on travel habits and home energy and water use, has been used by over 800 people. - The calculator tool will be continually updated to improve usability and appeal. The Climate~- mart online pledge page allows businesses or individuals to make a 'public' commitment by i signing upto reduce their carbonfootprint. A "Who's In" page liststhosethat have pledged and a map shows a green pin at the participant's address. Approximately 500 individuals and busi- ~ ~ ~ ` 11^` Wessel had pledged by the end of the year. ,A,! i;>~~ Marketing messages in 2007 focused on specific calls to action and were diffused via the web- ~ site, print advertising, program brochures, utility bill inserts, bus ads, and radio spots. Addi- ''Y J tional marketing tools included a monthly e-newsletter {The Changing Times}, a viral email ~ campaign during October Energy Awareness Month, and a bi-monthly ClimateSmart Q&A col- ~,~r'~~'~`~ umn in the Camera. I;~ A significant amount of earned (free} media coverage was secured in 2007 through story pitch- @,~, ' ®l I Qll es to reporters, regular press releases about ClimateSmart programs and initiatives, articles writ- ten by CAP staff for local publications, and through Channel 8 programming. Local print publi- ~ ~ cations were extremely interested and supportive of Boulder's climate efforts and this was ~I~ reflected in the amount of media coverage. II ~ ~ ~ I' ~ 4~ ~ f In late 2007 a public recognition marketing campaign began with a press release and multiple .:~L ,,~g~~; _ ads in the Camera thanking local businesses that took advantage of programs and acknowledg- -4 , ' ing residents and businesses that pledged to reduce their carbon footprints. :@~~~~-~ - - d ~ 1 Primary 20U7 marketing channels: ~ • 40 print ads in the Camera (ClimateSmart's 2007 Media Sponsor) ~ ~ • 16 press releases leading to 13 articles/news briefs and two radio interviews ~ ~ ` • Boulder County Business Report's annual Green Book(ad) f = ' ~ • Repirect Guide (editorial + ads) _ • Boulder Green Building Journal (editorial) ~ \ • Conservation Magazine {ad) published by the Center for Resource Conservation ~ •ClimateSmart CFL discount posters at local hardware stores during Energy ~ ~ Awareness Month • Weekly spots on KUNC radio • Transportation EcoTip video on Channel 8 ~ Community Outreach & Events `~Gr ~ Outreach efforts in 2007 included participation in and co-sponsorship of multiple events be- tween April and October like the Step it Up March, Earth Day, Boulder Salar Week, Boulder County Going Local, and EcoArts. Overall outreach efforts focused on brand awareness, com- ~ `..1 munity engagement, and education. A Saturday ClimateSmart table at Boulder`s Farmer`s Mar- . - ket increased program awareness and the ClimateSmart team gave numerous general and - technical presentations to business groups, neighborhoods, and special interest groups. y~, Between March and December 2007, 22 staff presentations to approximately 600 audience ~ ~ members were given throughout the community. Audiences ranged from local environmental organizations and a group of surgeons and public health officials at Boulder Community Hos- pital to Rotary groups, neighborhood associations, realtors, commercial brokers, the Chamber y of Commerce, and the general public. ~ Wind Challenge a r Achieving the city's GHG goal requires a significant increase in renewable energy use. The CAP ~ proposes holding annual wind challenge events to increase awareness of buying wind power as a renewable energy option. Challenges were held in 2005 and 2006 but not in 2007, primar- ily because of a lack of wind capacity available through Xcel Energy s Windsource program. Even though the environmental attributes of wind energy can be purchased through renewable energy credit (REC} providers, the city was uncomfortable running a promotional program to ~ ~ encourage residents to purchase wind power if RECs were the only option available. The city intendsto hold a Wind Challenge in 2008 from spring into summer. The goal is to sign . ~a , a. _ „ up at least 1000 new wind power subscribers and offset over 10 million kilowatt hours of an- ~ ` ~~~p` nual electricity use. The city will partner with Xcel Energy, REC providers, Boulder County and communities across the county to promote the program. The city recognizes that the Wind s= Challenge is a great avenue to educate the public about wind power and RECs and their role in helping to reduce carbon footprints. ~ ~ Nexf sfeps ~~`~6~~~~%I Marketing and communications efforts in 2008 will focus on sustained, creative and upbeat "call to action" messaging, case studies of energy-sustainable businesses and individuals, con- timed use of most communication channels, and engagement in new outreach methods. _ A system far quantifying results will be developed to track numbers of people participating in - programs, visiting the website, receiving the a-news, calculating their carbon footprint, pledg- ing online, visiting the farmer`s market, attending presentations, and viewing print and online _ ads. Email campaigns, which successfully drove visitors to the website this fall, will be used in - an attempt to sign up hundreds more community members for the calculator and pledge. Out- , reach efforts will be expanded with weekly outreach table events and a target of 40 commu- nity presentations. Community Engagement. Widespread success in reducing greenhouse gas emissions in Boul- derwill depend on the viral aspect of the ClimateSmart message -friends telling friends, kids encouraging parents, company owners supporting action among their employees (and vice versa), and businesses telling other businesses how they benefited from ClimateSmart Vi=a ; ~'Tlrc-.~ programs. Ongoing outreach to `early adopters' and other community leaders to solicit their support in diffusing the call to action and program messaging to their networks is a 3- priority for ClimateSmart staff. ~ ~ ~l Neighborhood Support. ClimateSmart staff play a support role to neighborhood climate ac- ~ ti tion groups in Boulder. In 2007 the Shanahan Ridge neighborhood was the most active group (see the ClimateSmart at Home section for details}, and in December the Newlands neighbor- `:-1 hood jumped into action. In 2008 staff hopes to see up to five neighborhoods organize climate- ~ ~~~~~i ;r-~-~=___, focused action groups, and will support them with modest printing budgets, presentations at ~>i•'~~`` meetings, free prizes, ideas, and press coverage. Staff will evaluate our efforts over time to en- _ ti:: ",-119 F sure we're being responsive to meeting the needs of the community as well as facilitating re- ice-- ~ 6'•' cults. The creation of community is a rewarding outcome of this type of local action, and further ~ r`a'^ bonds Boulder neighbors as they worktowards creating a sustainable energy future. ` r Recognition Programs. Developing meaningful ways for local businesses and homeowners ~~M-`; . - to be recd nized for their efforts will be im ortant in su ortin the view that combined, g p pp g ~ ti sustained, community-wide efforts can add up to significant GHG reductions. In 2008, staff - will solidify a commercial recognition program thatwill provide free PR (and other benefits) to companies displaying a commitment to energy sustainability. Aneighborhood recogni " a tion program will be developed to recognize currently active groups for their efforts; the program will also intend to inspire others to take action. F' CLIMATE ACTION IN CITY OPERATIONS _ _=__r_ The city organization is committed to working towards a healthier environment. In addition to helping the community reduce GHG emissions, it is critical that the city look at its own opera- :•~r tions to ensure that the city serves as a model for the community. The sharp rise in electricity and r'~. ~ r ~ fuel prices also continue to strain already limited city budgets creating an additional incentive ~ . and benefit to reducing emissions. _ ` ~ In 2006, the city organization used over 27 million kWh of electricity and 700,000 therms of natu- ! - ~ A ral gas, emitting over 25,000 mtCOz. The city`s fleet annually emits almost 3,000 mtCOz although -`c f aggressive efforts in reducing fleet emissions have reduced this amount over prior years. ~ City departments have actively supported the GHG goal. For example, in 2007, CAP staff col- ~ laborated with Facilities and Asset Management (FAM) to develop an energy strategy for the ~ ~ city. Additionally, collaboration with Planning and Development Services led to the development of an updated Green Points program for residential construction. The city is also taking steps to increase the amount of renewable energy utilized by the city. The city is currently establishing a one megawatt solar array that will help power the 75th Street Waste Water Treatment Facility. Additionally, a 10 kilowatt (kW) system will be installed at the Reynolds Library. Both of these systems will be installed in 2008. - r Facilities and Asset Management {FAM) •t ~ FAM is continuously evaluating strategies such as conservation, energy efficiency, and alterna- tive energy to meet the energy needs of the city organization at the lowest possible cost. It is I r FAM's general policy to complete energy-saving projects that have afive-year-or-less payback I ~ ~ period and to purchase hybrid and alternatively fueled vehicles where possible. In 2007, FAM completed almost $90,000 worth of energy efficiency improvements in city facili- - ties. These improvements included efficient windows, replacement of heating, ventilation and air ~ _w conditioning (HVAC}units, and increased insulation in city buildings. FAM actively pursues meth- ,•a~' 4,. _ ~a ods to reduce energy use as many departments have difficulty managing increased energy costs. ' > s The city also continued purchasing wind power and utilizing solar thermal energy, bringing re- newable energy-powered supply to 3% of the city's total electrical demand, not including hy- droelectric power. ~ Fleet Services j~~, The city's Fleet Services has also been active in reducing GHG emissions from the use of city - ~ . vehicles. GHG emissions from the city's fleet have been reduced over time by reducing the num- ~ r'hf;~'~J'.a `.a ber of miles traveled, expanding biofuels use, and purchasing vehicles with better fuel econo- 'r,~,r~ ~ f , my, including hybrid electric vehicles. In 2446 these strategies reduced emissions to 65 tons ~ ' ,;,~r~ :~4 'A{~ below the Kyoto target {7°1° below 1994 emissions}, A preliminary analysis shows that in 2007, > ti ~ . ~ the city fleet had reduced emissions even further. v- v jc,,S~. Y'. ~;;r~~, .,F,,,~''~~ ' ' In 2447, Fleet Services purchased 36 vehicles. In nine of these cases no alternativefuel or hybrid ~ ' ~ ,:e`:; vehicle was available that rnet the city's specifications. The remaining 27 vehicles purchased " F. ~ ~ r.Y were alternative fuel or hybrid vehicles. Specifically, the city purchased three E85 vehicles, 16 • ° ~ v' ~ diesel vehicles capable of using biodiesel, and eight Ford Escape Hybrids. Overall, the city pur- . y~~ ~`j : chased an alternative fuel or hybrid vehicle 144% of the time when one was available to meet ~ = ' ~ ~ specifications and 75% of the time overall. r~~,;,ac,,,~ Biodiesel, E85 and propane are available at the city`s fleet fuel pumps. Use of biodeiesel and ,rte ~ "1 E85 increased in 2446 relative to 2405. CAP staff has met with employees who regularly drive ;-a-~E•,~ .~~~~~`m~ cityvehicles to explain the importance of for GHG reductions. Staff will cantinueto serve in this role as a technical resource to city employees and to Fleet Services staff as new alternative ve- hicle and fuel technologies become available. Green Points Program Updates The Green Points Program is the residential green building ordinance designed to minimize the short and long term environmental impacts of new and remodeled homes, including energy consumption. In order to receive a building permit and pass inspection, a builder must earn a ~ requisite number of "green points," based an the size of the project. The program was updated late in 2047 and the new program and code went into effect on February 1, 2448. A few goals ~ ~ for the update were making energy performance a pertinent component of the requirements ,~zb~~, and making certain "green" measures mandatory to enhancethe program's contribution to the ~ `•n city's sustainability goals. Key changes to Green Points include: t~', - - Waste Management ~ Mandatory requirements for demolition and new construction: F - ~ ~ ' ~ ~ • Demolition Management: Building projects requiring a demolition permit and classified as "en- tire structure" demolition will need to complete aDeconstruction/Construction Waste Recycling Plan before a permit is issued. This requirement may also apply to remodels and scrape-offs. • Construction Waste Recycling is required on all new construction sites with a requirement that 54% of all waste material generated must be donated, reused, or recycled. Compliance must be verified on a tracking spreadsheet listing materials and weights that were hauled to a recycling facility. Energy Efficiency Requirements for New Construction Energy efficiency standards have been updated to exceed the 2006 International Energy Conservation Code {IECC}.Compliance will be verified with a Home Energy Rating System {HERS} Index Score deter- mined by a RESNET accredited rater. The HERS index is a nationally accepted rating system which re- _ veals the energy performance of a home on an index of 0-500. A home built to code {IECC}will measure 100 on the HERS scale, the more efficient the home, the lower the HERS number score. ` Energy effirienry requirements vary acrarding to the size of the prajert as follows: • • - • - sy, ` New Construction Up to 3,404 30% = 74 HERS Index Score 3,001-5,000 50% = 64 HERS Index Score 5,401 and up 75% = 35 HERS Index Score F`R~". Multi-unit Dwellings Applies to all 30% = 70 HERS Index Score -L~ . . _ ~ _ Mi s~.l Energy Efficiency Requirements for Remodels and/or Additions 1;~~ ~5/~'/,r An applicant submitting a building permit for a remodel and/or addition of more than 500 ~`~le~~/~~ square feet is required to obtain a home energy audit on the existing structure before submit- ++1•+0~ ting building plans. The intent of this requirement is to ensure that the homeowner receives ener efficien information on their home before finalizin the sco a of work on their ' gy cY g p ~ . planned alteration. Additionally, energy efficient light bulbs with a luminous efficacy of 40 lu- ~'~~''''a , o ~ _ wens per watt or above must be installed m 50% of the existing light fixtures. ,4~.~.~~g~~ Point Options for New Construction, Remodels andlorAdditions ~ In addition tothe requirementsfornety construction {HERS rating above2006 IECC) and remod- ~ els and/or additions (energy audit and efficient lighting), Green Point options apply as they did ~ with the former program in that each project is required to obtain a certain amount of points ' from a list of options to meet the code. Since the new program incorporates many of the en- fjt ergy efficiency requirements through HERS and energy audits, thetotal points required to com- ply with the code have been reduced. Nexus to CAP Goals While most of the current CAP programs support voluntary action to reduce greenhouse gas emissions, it is recognized that regulations that support the other city environmental sustain- ability goals can be designed to contribute to the city's GHG reduction goals. This update to Green Points is an innovative approach to improving our housing stock in Boulder. Data col- .h; . ' lected through the program will demonstrate actual energy saved by building homes with en- ,z;- - ergy efficiency as a requirement. Preliminary estimates indicate that this code revision could - _ _ _ reduce GHG emissions by approximately 900 mtCOz/year. ~ _ - ~ ll Renewable Energy Fund ~ City Council adopted the solar sales and use tax rebate ordinance (No. 7487) on November 14, - ~ 2006, creating a renewable energy fund. A portion of the renewable energy fund (65%) was ' . ~ dedicated for the purpose of providing financial assistance through grants toward installation . ~ of photovoltaic (PV) or solar thermal systems on housing for low to moderate income persons and on thefacilities of site-based non-profit entities operating in Boulder. The remaining 35%is .,M.,,-~- ' ~ dedicated to sales and use tax rebates for residents or businesses installing solar systems in the ~ti~, f~~~~,{, p~.~,~, . 4 Z~e city. Approximately $84,000 was generated in the fund in 2007. ,,,t ClimateSmart Solar Grant y ~ Y~ The grant portion of the renewable energy fund, called the ClimateSmart Solar Grant, intends to fund a number of projects which will provide education about solar technologies in the com- munity, install systems that will benefit recipients through lower energy costs, and provide visi- bilityand education about the city`s renewable energy fund and renewable energy goals. Staff has developed a process and grant application for awarding ClimateSmart Solar Grant funds to qualified organizations or individuals in the community. Staff has recruited eight mem- • bers of the community with knowledge of vital program elements such as solar systems, non- r ~ profit organizations, affordable housing programs, and financial systems to serve on a grant selection committee. The grant will have two cycles each year, March 15th and August 15th. The ~ application was released to the public in the beginning of 2008. At the time of release, ap- proximately $55,000 was available in the grant fund. The first grants from this program will be ~ awarded on May 1, 2008. The solar grant fund will provide materialsto award recipients such as yard signs for placement ~ ~ during construction, plaques for inside the finished building, and educational materialsto dis- tribute on tours. These materials are intended to promote the city's ClimateSmart Solar Grant S HA R E program and provide education about renewable energy in relation to the city`s GHG emissions reduction goals. ~ E OA D Solar Rebate Rebates for a portion of sales and use tax paid on a solar system continue to be available _ through the renewable energy fund. In 2007, 39 applicants requested the rebate and approxi- ~ , mately $4,000 has been rebated. A new policy in 2008 may be initiated to allow money un- claimed after one year to be rolled over into the ClimateSmart Solar Grant fund. . , ~ ~ 1'' ~ City sustainability Goals ,Y' ~ ~ The solar sales and use tax rebate ordinance is a great example of Boulder's commitment to ~ ~ , ~ economic, environmental, and social sustainability. Tremendous growth in the local solar indus- ~ 4 try as a result of Amendment 37 {which provided local rebates for solar through Xcel Energy y ` combined with federal tax credits) has led to a much greater number of photovoltaic {PV} pan- ~ ~"k~ ~ ~;`'t, els installed in the city than originally anticipated. _ ~r~~,. z ~ } ~ In relation to economic sustainability, the local solar industry continues to grow with the num- i i;, ber of Boulder-based solar companies exceeding 25, while two years ago this number was ~ b w~,,~~; closer to ten. Incentives to install solar systems support local growth of this industry. ~ : : ~ >~i w Environmentally, the program reduces GHG emissions from electricity generation. Since the ~ ~3''~ } ~ ~ inception of this program, 1,148 kilowatts {kW} of solar has been permitted in the city of Boul- der. The installation of this quantity of PV panels will reduce emissions by more than 1,492 mtC02 annually. If an equal quantity was installed in Boulder each year through 2412, ap- ¦ ~ } ~ proximately 2% of the city's current total GHG emissions reduction goal would be met. u~+. Boulder City Council's decision to offer a partial rebate and to invest in a renewable energy grant fund helps to minimize the social sustainability concern that only wealthy property own- ' ers can afford these types of systems. The Solar Grant Fund addresses economic barriers to re- newable energy investment by supporting installation of renewable energy systems on low to moderate-income housing and site-based non-profits. ~ - - - Chicago Climate Exchange s ,w~ ~ In 2447, the city organization continued its membership in the Chicago Climate Exchange {CCX}, CCX is a voluntary, legally binding cap and trade program designed to reduce GHG emis- sions, help businesses and organizations manage emissions and recognize the value of reduc- tions,and implement market-based strategies for emissions reduction. For municipal members, only organization-wide emissions from electricity, natural gas, and fleet fuel are included; com- munity-wide emissions are excluded. Participation commits the city to an additional 2% reduc- ' tion in emissions below the baseline for a total reduction of 6% below baseline by 2010. - - CCX accepted the city of Boulder's emissions report for 2046. According to the audited emis- - - sions report, the city organization reduced its emissions by 3.14% relative to the baseline. Emis- ~ ~ sions from electricity increased 2% and emissions from natural gas increased, but only slightly. .k ~ ~ Emissions from the city's fleets decreased by almost 16%. As a result of total lower emissions . ' ~ ~ from 2003 through 2406 as compared to the baseline, the cityof Boulder has earned 83 carbon '~r financial instruments {CFI's), representing 8,340 mtCOz that can be banked or sold. As of De- cember 30, 2007, CFI's were traded at approximately $2 each. _ ~ ~ ,I11 LED Halida Li hts on Pearl Street Mall ~ P • CAP staff partnered with colleagues in the Parks and Recreation department and with Down- ,~r ~ Y " town Boulder, Inc. to develop a plan to replace the traditional incandescent holiday lights on the Pearl Street Mall with LED {Light Emitting Diode) lights, which are 90% more efficient than 4 the incandescent variety. The three groups researched the current lighting situation on the mall ~ and evaluated costs and quality of LED lights. Combined funds from all three sources led to the purchase over 440 strands of LED lights for permanent placement on the Mall. These energy ~ saving strands reduced emissions by more than 7,000 Ibs of COz {annually} compared to the incandescent strands. This collaboration will continue next year with a goal to replace all of the holiday lights on the Mall with LED strands. CONCLUSIONS The programs, activities and policies established between 2004-2007 formed thefoundation for practical, effective and more aggressive action to reduce emissions. 2007 represented the first year in which funding for the city's climate protection efforts were aligned with the comprehen- ~ ~ ~ ~ ` " - , live actions and programs necessaryto begin making significant progress in reducing emissions. - . ; ~ ' Lessons learned in previous years will be applied to future programs to ensure that Boulder`s r` residents and businesses receive a high level of service and that city funds are spent wisely. The ~ CAP team will continue to work with local and regional partners, other cities, counties, the Gov- ernor`s Energy Office, Xcel Energy, University of Colorado and non-profit organizations, to lever- age resources and share best practices. ~ ~ Thefoundation building on the technical side is fairly well developed and will need to expand in ~ future years, requiring additional budget. Education and outreach efforts initiated in 2007 will ~ . focus on the human side, helping people, whether residents, business owners or employees, ~ ~ make informed decisions to reduce their emissions. These interactions will inform the CAP staff about the tools and resources needed to take action. , Renewable energy is a highly important element of the CAP. In 2008 a primary focus will be to workwith City Council to develop a renewable energy strategy forthe community. Another key . Jt priority will be to increase renewable energy use by the city organization. Other strategies like incentives and regulation will also be evaluated in 2008 to determine the best combinations of J. i strategies to more aggressively reduce emissions to meet or exceed the city`s 2012 goal. , i _ - V c',`~•~ ,.Y ,4 Y ~c' ~..:k~~' - ~~r` . - -g ~ 7~ y ~ CLi mad Smart ~ x R i • . ~ .f pi.~, . . - R_ e i~ / 1 r • ll~ ,F~ • f ~ , a~ ' . ' ' "ti b ~ # 77 bb IY' ~ I'J~ I~ ~ I ~ II ~_~II _ l _J~ ~ I vww~i, i~e~:l i rnateS mart, corn Southwest Energy Efficiency Project Achieving 30% or greater energy savings in commercial buildings: Building design options and technical assistance resources March 4, 2008 C?verview State and local governments across the country are actively pursuing programs and initiatives that require new or substantially renovated commercial buildings to exceed commercial energy codes by 30% or more. Information is provided below regarding national, state and local commercial above-code programs. Most of the programs highlighted are designed to achieve a 30% or greater improvement in energy performance in commercial buildings. Experience from project implementation, however, suggests that 30% savings is cost-effective to the building owner; in same cases buildings have been constructed at this savings level at no additional incremental cost. Advanced buildings have been constructed that achieve savings of 50°l0 or more by using energy-efficient designs and systems, including a combination of natural daylighting, highly efficient lighting systems and controls, and awell- designedand highly efficient thermal envelope, HVAC and water heating systems. Additional savings (above 50%} could be achieved through additional efficiency strategies, and by incorporating on-site renewables, including PV, solar thermal, and ground-source heat pump systems. Technical assistance and incentive programs are available at the federal, state and local levels to support high performance building projects, along with utility programs offered by Xcel Energy. Program Design Options: Advanced Commercial Building Codes 30% Above-Code Pertormance New commercial buildings can be constructed that achieve 30°to or greater energy savings using energy efficiency best practices in the building design process, construction, and operation of the building.' One approach that local governments i;e.g., Albuquerque} have used for implementing a more efficient commercial energy code is to amend the ASHRAE 90.1 requirements with more stringent requirements in targeted areas, such as building envelope, mechanical systems, lighting, and domestic hot water. Other states and cities (e.g., California, Seattle} have developed their own versions of energy codes that are more stringent than ASHRAE, and address additional aspects of building energy use (e.g., cool roofs). Links to individual state and local code programs are provided in the information resources section at the end of this paper. The process for designing, building and operating a commercial building that achieves 30°!o energy savings is similar to a typical building, but with additional emphasis given to the design of the building and mechanical systems, performance of the building envelope and fenestration, and the efficiency and performance of building systems, including lighting, HVAC, and domestic hot water. For most commercial buildings, the 30% savings target can be achieved by following well defined prescriptive requirements that make incremental improvements to standard building design and construction practices. An illustrative example of the types of changes that could be used to achieve 30% energy savings is provided in Table 1. The table shows that achieving 30% savings can be accomplished with relatively modest improvements to the building heating and cooling systems and envelope, and a modest reduction in ~ Compared to ASHRAE 90.1 - 2004 standard. ASHRAE recently updated Standard 90.1 in 2007. The new standard achieves 10% more energy savings than the 2004 standard Program Design Options for achieving a 30% or greater improvement in commercial building energy efficiency lighting levels. Examples of commercial buildings that have achieved 30°!o energy savings relative to ASHRAE Standard 90.1 are included in the information resources. Table 1. Examples of building design changes implemented to achieve 30% energy savings 90.1-2D04 20061ECC 90.1-2007 AEDG-Small 189P Office Mandatory 90.1-2004 90.1-2004 90.1-2004? =X0.1-I i'_:'=~ 90_'I-2004 Heating 80°!o E° 5C°~~~ E,, 804<~ E° 80% E_ Efficiency Cooling 10.3 EER _ EEF' Efficiency Economizer NR NR S1,^JH 80°io E< <~C~'~b E._ 80°I° E. 80% E, Efficiency Roof R-15 ci R-15 ci ~ - ~ Insulation (Nall R-13 + R-13 + R-13 + R-13 _ R-13 + Insulation R-3.8 ci R-3.8 ci - ci - - ci R- ci Stab NR NR NR yR Insulation 'o'4'indo~,~; 0.57 U-Facto 'a^vindo~,~; 0.39 J.4C . -G C.-~_~ SHGC LPD 1.0 L1~ift= LO W?ft'- 1.0 lti'?ft= Source: Mark Halverson, PNNL. What Does 30~° Better than Standard 90.1-2004 Look Like? http://www.energycodes.gov/news/ecodes2007/presentationslcommerciallHalverson panell.gdf Guidelines are available from ASH RAE and the New Buildings Institute for achieving predictable energy savings at the 30% level for a variety of small- to medium-sized buildings (i.e., projects ranging from 10,000 to 70,000 square feet). ASHRAE has developed a series of Advanced Energy Design Guides that include prescriptive measures for achieving 30% energy savings in small office buildings, small retail, and K-12 schools. The Guides are available at no cost from ASH RAE. Advanced Buildings Co?e Performance, developed by the New Buildings Institute, is designed to achieve energy savings of 20 to 30% over ASHRAE 90.1-2004 through a series of integrated design strategies and prescriptive measures. For larger projects (>50,000 square feet), free energy design assistance and incentives for building efficiency improvements are available from Xcel Energy. 2 Program Design Options for achieving a 30% or greater improvement in commercial building energy efficiency Compliance options and paths Compliance options could include the following: • Demonstrate compliance using a prescriptive or system performance approach using the DOE COMChek software program. Small office and retail buildings could comply by following the prescriptive measures contained in ASHRAE's Advanced Energy Design Guide, or the Advanced Buildings Care Performance Guide. • Achieve LEED-NC Silver or higher, with minimum of 7 E&A points • Achieve an ENERGY STAR rating of 80 or higher {ENERGY STAR qualification level is 7b out of 100 points) 50% Above-Code A 50°!o improvement in building energy performance can be achieved by employing enhanced performance strategies that build upon the improvements made fora 30% savings. In addition to incremental improvements to the building envelope, mechanical systems, and lighting, a 50% improvement target could be achieved by employing a combination of advanced building design and performance strategies, including: • Incorporating daylighting into the building design • Additional lighting controls and power reductions • Use of indirect evaporative cooling • Heat recovery and night ventilation • Premium economizers, variable speed controls, and • Additional building commissioning using athird-party commissioning agent {CxA) • On-site supply of renewable energy It is more feasible to achieve 50°l0 or greater savings level in the following building types: • Low-rise buildings {less than 3-4 stories) with space for skylights and PV systems • Warehouses and standalone retail stores Examples of building achieving 50°l0 or greater energy savings are provided in the information resources section. 3 Program Design Options for achieving a 30% or greater improvement in commercial building energy efficiency Technical assistance and incentives for advanced commercial buildings There are many technical assistance resources available to help commercial building project developers design and construct highly efficient buildings. At the national level, the ENERGY STAR program offers project design tools, guidelines, and technical information resources to help design, build and operate highly efficient commercial buildings. In Colorado, Xcel Energy offers energy design assistance, including energy modeling to calculate LEED qualification levels for new commercial projects greater than 50,000 square feet. Incentives for prescriptive measures are available for smaller projects. Technical Assistance Resources ENERGY STAR www.energystar.gov • Target Finder • Guidelines for Energy Management • Portfolio Manager (for tracking building energy use and operating performance) • ENERGY STAR product information and savings calculators Xcel Energy's technical assistance and incentive programs include: • Energy Design Assistance, including free consultation, computer modeling and verification of measures for new buildings, additions and/or major renovations. The program includes analysis of energy savings to support LEED Certification. Eligible projects include: o New construction, additions or major renovations o Commercial buildings 50,000 sq. ft. or more, in early design stages o Housing and condominium projects 150,000 sq. ft. or more, not including garage space • Prescriptive rebates for efficient cooling, compressed air, lighting (new construction and retrofit), and motors • Custom Efficiency programs that provide rebates of up to $200 per kW saved for cash incentives for choosing energy-efficiency measures that exceed standard options but aren't covered under Xcel's standard energy conservation programs. For more information, see Xcel Energy's web site at: www.xcelenergy.com. Federal commercial buildings tax credit Advanced buildings may also be eligible for the federal commercial building tax credit of up to $1.80 per square foot for improving the efficiency of existing buildings, or designing high efficiency into new buildings. • To qualify for the full deduction, a building owner or tenant must make investments designed to reduce energy costs by 50% or more, compared to ASHRAE Standard 90.1-2001. A partial deduction of $0.60 per square foot is available for investments in one of three systems-lighting; 4 Program Design Options for achieving a 30% or greater improvement in commercial building energy efficiency heating and cooling; or building envelope- designed to reduce energy costs by 16 and 213°to(i.e., one-third of the 50°lo requirement). For more information on the federal tax credit for commercial buildings, see: • ENERGY STAR's fact sheet on commercial building tax incentives: http:!lwww.energystar.aaviialbusinesslcomm bldg tax incentives.pdf • DOE Building Technologies Program Fact Sheet http:!/www.eere.eneray.aovlbuildinaslinfoldocumentslpdfslbt Comm tax credit.pdf • Energy Tax Incentives Assistance Project Web site http:!lwww.energytaxincentives.ora/businesslcommercial buildinas.php • NREL Energy Savings and Modeling Guidelines for Commercial Building Federal Tax Deductions http:!lwww. nrel. aovldocs/fy07osti/40228. pdf 5 Program Design Options for achieving a 30% or greater improvement in commercial building energy efficiency Information Resources on Advanced Commercial Energy Codes ASHRAE Standards Program: ASHRAE 90.1, 2007 (current commercial building code) Description: ASHRAE 90.1 2007 is the latest version of ASHRAE's commercial building code. It includes additional energy efficiency measures in the areas of lighting, mechanical systems and building envelope. The 2007 version of 90.1 is about 10% more stringent than 90.1-2004. Websites Overview of 90.1, 2007: http:llwww.ctovenergy.com/2007/pdfs/lpl/JarniQan LPLtrack SS.pdf Standard: Program: ASHRAE Standard 189, Standard for the Design of High-Performance, Green Buildings, Except Low-Rise Residential Buildings Description Proposed Standard 189, Standard for the Design of Hrgh-Performance Green Burtdrngs Except Low-Rise Residentia! Buildings, will provide minimum requirements for the design of sustainable buildings to balance environmental responsibility, resource efficiency, occupant comfort and well-being, and community sensitivity. Using USGBC's LEED Green Building Rating System, which addresses the top 25% of building practice, as a key resource, Standard 189P will provide a baseline that will drive green building into mainstream building practices. This standard provides minimum criteria that: (a) Apply to new buildings and major renovation projects (new portions of buildings and their systems): a building or group of buildings, including on-site energy conversion orelectric-generating facilities, which utilize a single submittal for a construction permit or which are within the boundary of a contiguous area under single ownership (b) Address sustainable sites, water use efficiency, energy efficiency, the building's impact on the atmosphere, materials and resources, and indoor environmental quality (IEQ). Status: Draft issued; scheduled fora 45-day public review from February 22, 2008 to April 7, 2008. Websites: general information: http:/lwww.ashrae.orglpressroom/detail/13571 draft standard: http://www.ashrae.org/technology/pace/331#849 Program: ASHRAE Advanced Energy Design Guides (30% above ASHRAE 90.1 -1999 b Program Design Options for achieving a 30% or greater improvement in commercial building energy efficiency Description: The ASHRAE Advanced Energy Design Guides (AEDG) are a series of publications designed to provide recommendations for achieving energy savings over the minimum code requirements of ANSUASHRAE/IESNA Standard 90.1- 1999. The guides have been developed in collaboration with these partnering organizations: The American Institute of Architects (AIA), the Illuminating Engineering Society of North America (IESNA), the U.S. Green Building Council (USGBC), and the U.S. Department of Energy (DOE). The New Building Institute (NBI) participated only in the development of the Advanced Energy Design Guide for Small Office Buildings. The initial series of guides have an energy savings target of 30°!o which is the first step in the process toward achieving a net zero energy building -defined as a building that, an an annual basis, draws from outside resources equal or less energy than it provides using on-site renewable energy sources. Each 30°l0 Guide addresses a specific building type. Additional guides for existing buildings and at 50% energy savings towards a net zero energy building are also planned. Status: Guidelines published for small office, small retail, and K-12 schools; available free from ASHRAE Website: http~l/www.ashrae.org/technologylpacte/938 USGBC -LEED Standards LEED-New Construction, Version 2.2 LEED-NC Version 2.2 requires new commercial buildings to be built at a minimum of 14% higher efficiency than conventional buildings (compared to ASHRAE 90.1 - 2004). Additional energy savings are achievable by specifying additional mandatary LEED points in the energy & atmosphere category. Web site: http://www.usabc.oralDisplayPaae.aspx?CMSPaaeID=220 State /Local Codes California Title 24 -Commercial Building Regulations Web site: www.energy.ca.gov/title24l City of Albuquerque Energy Code Provides amendments to ASHRAE 90.1 - 2004 http:Jiwww.cabg.govJsustainability/green-goalsJgreen-building City of Seattle Energy Code Estimated to achieve 10~ savings over ASHRAE 90.1 - 2004 http:liwww.seattle.aov/DPD/Codes/Eneray CodelUverview/info link.asp 7 Program Design Options for achieving a 30% or greater improvement in commercial building energy efficiency Eagle County Green Building Code (Residential and Commercial) (effective May 19, 2008 for commercial projects) Provides apoints-based checklist for commercial energy efficiency measures. http://www.eaalecounty.usinews.cfm?id=2838 Background Information on commercial codes Articles and Fact Sheets John Hogan and Steve Ferguson. August 2007. ASHRAE Standard 189. Building Safety Journal. http://www.iccsafe.org/news/green/0807BSJ36.pdf. Paul Torcellini. August 2007. Zero energy buildings defined. http://www.buildinas.com/articles/detail.aspx?contentlD=4987 Commercial building tax credit. ENERGY STAR. http:iiwww.eneraystar.aov/ia/business/comm bldg tax incentives.pdf Presentations ASHRAE 30% Code Improvement Strategies for managing commercial building energy consumption. Paul Torcellini, NREL. http:l/www.metromayors.orc~/Downloads/TorcelliniPPT.pdf The ENERGY Performance of LEED Certified buildings. New Buildings Institute. www.newbuildinas.org/downloads/LEED presentation 11-13s.pdf 8 Program Design Options for achieving a 30% or greater improvement in commercial building energy efficiency Commercial Building Examples Small office • Nature Conservancy Regional Headquarters, Boulder http://www.bouldercolorado.gov/files/Environmental%20Affairs/naturecon_cs.p df Large office (including buildings with ground-floor retail) • Public sector o EPA Region 8 Offices (LEER Gold), Denver, CD http://www.epa.gov/oaintrnt/facilities/denver-ha.htm http://www.epa.gov/oaintrnt/documents/denver_epabroch_5D8.pdf o Alfred Arraj Courthouse, Denver, CU http://www.eere.energy.gov/buildings/database/energy.cfm?ProiectlD= 1 79 o Wolf Law Building, CU Boulder http://www.colorado.edu/conservation/documents/CULawSuccessStory OOl .pdf • Private sector o Scowcroft Building, Ogden UT http:/iwww.eere.energy.goy/buildings/databaseienergy.cfm?proiectlD= 4238~1anguage=en 8~submit=Go#select 0 7 Generations Office Park, Fort Collins, CU (LEED Platinum application; 50% more efficient than ASHRAE 90.1-2001) http://7genllc.com/7gop_overview.html Retail space o REI -Boulder (2D-3D% energy savings) http://www.rei.com/greenbuilding/boulder o Belmar, Lakewood http://www.greenconsortium.comlprojects/other.php o Big Horn Home Improvement Center, Silverthorne (54% source energy savings) Technical data: 9 Program Design Options for achieving a 30% or greater improvement in commercial building energy efficiency http://www.eere.eneray.govibuildings/database/energv.cfm?ProjectlD= 54 Brochure: http://www.eere.energy.gov/buildings/info/documents/pdfs/28545.pdf NREL report: http://www.eere.energy.aov/buildings/database/energy.cfm?ProjectlD= 54 K-12 Schools o Poudre Valley School District -Fossil Ridge High, Fort Collins http://www.fmlink.com/ProfResources/Sustainability/Articles/article.cgi?USGB C:200701-10.html and http://fcgov.com/conservation/pdf/cs-fossilridge.pdf 60~ more efficient than a standard school; built at no additional cost. o Poudre Valley School District -Kinard Junior High School httg://www.greenconsortium.com/prolectslother.php Manufacturing /Light Industrial o New Belgium Brewing, Fort Collins http:/iwww.intermountainchp.arg/casestudies/New Belgium Praiect Profile. For more information, see SWEEP's Energy Efficiency Guide far Colorado Businesses, at: o http://www.coloradoefficienc~auide.com 10 ~l I~ +r r o +d1- ~ , * ~ ~ tip. _ - - _ r-~ y- ~ , ~ :3' - - - - a""!~~ _ _ - - _ ter-- ***DRAFT*** ~it~ ~f ~a~ul~er [~Ifice ~f 6rrvironrt~n>~il Affairs n+aaw~ri~riranmer~talaffai~~,~rn ~1~ ~S Worldwide electricity consumption is projected to double by the year 204x. This demand represents an unprecedented opportunity for building clean, renewable power generation. Intrc~d~~ti~n Over time, the city of Boulder has continued to explore options to reduce its impact on the local and regional environment, from initiatives that support a strong community, as well as those that enhance environmental, social and economic sustainability. The city is preparing to move aggressively towards a path that supports the development and inclusion of renewable energy sources which produce electricity with no direct global climate-changing greenhouse gas emissions or regional air pollution that comes from burning fossil fuels such as coal and natural gas. Renewable energy technologies also produce regional jobs while limiting the importation of energy from other nations. Just over 33 percent of greenhouse gases produced in the United States came from electricity production in 2004, making it the leading category of such emissions over other areas such as transportation (27.9 percent), industry (19.6 percent) and agriculture (7 percent). In Boulder, the percentages are even higher, with 51 percent of our local greenhouse gasses coming from electricity consumption. To this point, the city has not included renewable options at its facilities in a significant way, with only 3% of the city's current energy needs coming from renewable sources (based on 2008 data). The leading cities in renewable energy could have an advantage in any upcoming federal or state regulations aimed at regulating or eliminating greenhouse gas emissions or developing renewable energy standards. If the greenhouse gases that cause climate change get priced, cities with strong renewable energy programs could save a lot of money in the long run and their economies could gain a tax advantage. As an example, Oakland, California led the nation with 17 percent of its electricity being produced by energy sources such as solar, wind and geothermal energy. Oakland gets some of its wind energy power from one of the largest wind power generating facilities in the nation at nearby Altamont Pass. San Francisco, Sacramento and San Jose tied for second with 12 percent of their electricity coming from renewable energy sources. California cities rank high in general because of the state's Renewable Portfolio Standard, which set minimal requirements in 2004 for utility purchases of renewable energy for the state's electric grid. That standard requires a 20 percent renewable energy total for the state's utilities by 2020. Here in Colorado, we also have a 20 percent renewable energy total for the states' utilities by 2020, however, the city of Boulder has a unique opportunity to exceed that requirement. Some U.S. cities have also set goals for increasing renewable energy ranging from Chicago's 20 percent goal by 2010, to Portland, Oregon's goal of obtaining 100 percent renewable energy by 2010. Here in Boulder, we are fortunate to have access to a variety of renewable resources from solar and wind to hydroelectric capacity. The city manager has made a strong commitment to move the city organization to 100 percent renewable energy by 2018. The following strategy outlines a conservative path for the city organization to achieve this goal. It is believed that the goal of 100% renewable power could be achieved much more rapidly as new technologies and opportunities arise. The strategy below outlines a pragmatic and conservative approach to meeting the 2018 goal. The city's interest in pursuing renewable energy opportunities reflects: 1. A commitment to achieving the goals of reducing Greenhouse Gas emissions, 2. A desire to showcase the effective use of renewable energy practices, and 3. The efficient use of taxpayer dollars by utilizing rebates and other financial opportunities to help finance renewable energy. Climate Change Fossil fuels emit into the atmosphere large amounts of carbon dioxide and methane -the two major "greenhouse gases." As these gases accumulate, they act as a blanket, keeping heat in our atmosphere and oceans, leading to potentially catastrophic consequences for our planet and everyone living on it. We have already been witnessing the . , effects of increased greenhouse gases for decades. In the last century, global temperatures have risen an average of about 1.3° F, and twice that in polar zones. This may not seem like a large increase, but on a global basis, this increase is uicredibly fast. .~s greenhouse gases continue to accumulate, we may see more "freak" weather conditions here in Boulder, including longer and more severe heat waves, increased disease, stronger storms, megastorms, more frequent and severe floods and droughts. And the effects don't stop anytime soon. As the Intergovernmental Panel of Climate Change's recent report confirmed, climate effects will continue for centuries even if we all stopped emitting greenhouse gases today. Scientists overwhelmingly agree that we are already witnessing rapid climate change due to human related greenhouse gas emissions. For example, a survey ofpeer-reviewed articles on climate change found that, of the 928 articles reviewed, 928 agreed with the view that most of the warming we've witnessed in the last 50 years has been caused by human activities. The end of easily recoverable oil and gas The phrase peak oil refers to the high point of global oil production. Once this point is reached, the oil that remains in the ground becomes more difficult and less cost-effective to extract, hence oil prices climb. According to the Energy Information Administration, conventional oil production peaked in May 2405. We won't know for some time if this is an all-time peak, but the recent rapid decline in production from many large fields such as the North Sea region, Kuwait's Burgan oil field and Mexico's Cantarell oil field (25 percent in 2006 alone) suggests it may be. The question now is: Can unconventional oil and biofuels come online fast enough to make up for diminishing conventional oil production? In any case, the debate is no longer about ifwe will hit a global peak for all oil production, but when. When we do, we can expect prices to climb well above the high of $100 a barrel, dramatically impacting the city's ability to provide essential municipal services. Moving away from fossil fuels should be one our region's and our nation's top environmental and economic priority, which has been clearly outlined in the Climate Action Plan (CAP). Simply put, we can no longer afford to rely on fossil fuels -oil, coal, and gas for most of our energy. The key problems stemming from our reliance on fossil fuels, as discussed in the Preface, are climate change, oil and gas depletion ("peak oil"), national security issues arising from having to import foreign oil, and air pollution. It is imperative that we quickly progress and actively pursue a renewable energy economy, and use the remaining recoverable fossil fuels to help make that transition. We should focus vigorously on the cost-effective energy efficiency and renewable energy technologies available today, at the same time doing whatever is possible to ensure that other promising renewable energy technologies quickly become more cost-effective. In Boulder, we have a strong commitment through various strategies such as the CAP, Transportation Master Plan (TMP) and Boulder Valley Comprehensive Plan that work to reduce our dependence on fossil fuels. In the past, we faced a public formerly unaware of the serious problems caused by our dependence on fossil fuels. Now, many people realize that our unsustainable energy use is at the root of many of our most pressing problems. The climate change and national security implications of our energy use, in particular, have been prominent in news reports and commentary both locally and globally. Now that these issues are front and center in the minds of many Boulder residents and Americans, what's next? This renewable Energy strategy presents a "next step" for the City of Boulder. If these recommendations are implemented, we will be well on our way to doing our part to solve the many problems stemming from our use of fossil fuels. The good news is that we'll save a lot of money doing it, as described in detail below. The following scenario illustrates a diverse renewable portfolio for the city organization. In order to take advantage of local renewable resources, and to follow the "85115" strategy for city investment, in which the city will take advantage of 85 percent renewable options that prioritize the `least cast per watt" element, while 15 percent will focus on a public education and include the potential to showcase the city's commitment. In addition to existing incentives, the plan extrapolates each of four types of renewable energy, that when combined, can easily replace the city's current electricity demand. It is important to note, that the percentages represented below show a "snapshot" of the intended source once the 100% has been achieved. Many of the sources, such as large scale wind and solar systems, will require several years for implementation, as the resources (turbines) do not exist currently, and the implementation will require negotiation with Xcel for the transmission of such power, as well as the approval by the Colorado Public Utilities Commission (PUC). Fossil fuels have played a pivotal role in the evolution of the City of Boulder- but are also the root cause of many of the most dire problems we face. Not only does the city's current energy use affect the ability to mitigate emissions related to climate change, but the Energy Facts and Figures city `s Blue Ribbon Commission on Revenue . A kilowatt (kW) is a unit of power Stabilization identified facility energy costs as a _ or the ability to deliver energy critical deficiency that adds to a growing gap over time. A 3 kW solar photovoltaic between revenue and expenditures. While many installation, for example, will municipalities are working to address this provide much of the power needed instability by offsetting utility consumption for a typical home. through renewables, very few have committed to actual investment strategies. • A kilowatt hour (kWh) is a unit of energy and is enough electricityto Traditional energy sources, like coal, oil and run 10 100-watt light bulbs for an natural gas cutently provide over 95% of the hour energy the city organization uses. The city of Boulder currently uses 3% renewable energy in • A gigawatt hour (GWh) is one million its municipal operations. Renewable energy kilowatt hours comes from sources that can be replenished in a .One kWh is equivalent to 0.03 short period of time like solar, wind, biomass ar gallons of automobile gasoline hydroelectric. There are a number of advantages to using renewable energy sources: • Conversely, one gallon of gas is equal to 36.6 kWh • Energy costs for Boulder's municipal operations have risen in the last 4 years, from $ 1.5 million in FY04 to $2.2 million in FY07; a 19% increase. When taken alone, electricity costs have more than doubled from $703,955 in 2004 to $1.6 million in 2007; a 56% increase. Renewable energy sources like wind and solar offer the ability to enter into long-term fixed-rate contracts to help stabilize future municipal energy costs. • Money spent on renewable energy sources often stays in the local economy. • Renewable energy sources produce less air pollution than fossil fuel based energy and contribute to making our air cleaner and meeting EPA clean air standards. • Renewable energy sources greatly reduce global warming emissions. • Increasing reliance on foreign oil threatens our national security and economy. • Renewable fuels reduce our reliance on imported oil. Opp®r°kunities in reducing Maur fc~~~il fuel dependence Staff has been exploring available technologies for energy efficiency and renewable energy use in municipal operations in order to increase the city's use of renewable energy sources. The purpose of this evolution is twofold: to minimize the instability of rising energy costs, and to minimize the city organizations greenhouse gas emissions. At the 2008 City Council retreat, the City Manager declared his intention to move the organization towards future energy independence, and further set a course to have the city organization, equipment and facilities become 100% energy independent over the next ten years. This will also result in a significant increase in the Boulder community's overall renewable portfolio over the next ten years (including negotiating maximum capacity for renewable sources within the Xcel Franchise Agreement; potentially locating a renewable facility within the city). In order to reach a goal of 100% renewable energy for all municipal operations by 2018 with an associated reduction in community greenhouse gasses, staff has been evaluating options to purchase or produce long-term, fixed-rate "green" electricity from various renewable sources such as facility based, or "on-site" renewables such as solar PV or wind power constructed in Colorado and to provide recommendations on moving forward with green electricity purchase. The purpose of this strategy is to explore the technological options, financing abilities and viability of various renewable energy options. The Plan in Brief A dramatic shift away from fossil fuels can only happen if the city actively pursues the fallowing strategies: Energy efficiency and conservation- The city must aggressively increase our energy efficiency by 30-50 percent in our buildings, which constitutes the majority of our current and projected energy demand. Energy replacement options- The city will need to produce and purchase large amounts of renewable electricity such as solar and wind in or near our region. Next generation vehicles- With the implementation of the Smart Grid technology, the city can transition to more efficient vehicles and vehicle fuels, such as plug in hybrid vehicles, electric only vehicles and vehicle to grid technology, and potentially hydrogen fuel cell or hydrogen internal combustion engine vehicles, once they are more readily available and affordable in three to five years. Staff will continue to evaluate and also consider any other technologies and partnerships to help reach established renewable energy goals. The plan is awide-ranging collaborative, including the collaboration of various entities such as the Governor's Energy Office (GEO), major renewable energy research institutions, Boulder County, CU, and numerous not- for- profit organizations. Financial Analysis What will it cost? This is probably the most important question in this strategy. There are, of course, many different ways of measuring cost right now we pay for our fossil fuels not just in dollars paid for our utility bills, but in the air we breathe and the water we drink, in our national security and, most importantly, in our ability to sustain ourselves on this planet. The good news is, however, that even when you exclude these other costs and boil it down to strict traditional economics, the city will actually be in much better financial shape by adopting renewable technologies than continuing to burn fossil fuels. A renewable strategy for the city is organized to highlight the most cost-effective solutions first, starting with energy efficiency in buildings, then the lowest cost per watt renewable options such as wind power and solar pow-er. As the demand for fossil fuels fiom developing nations increases, fossil fuel supplies diminish and the ability to find affordable fossil fuel resources becomes more difficult, costs will continue to rise. It is necessary to reduce our reliance on fossil fuels and begin a transition to renewable energy sources. Fortunately, the cost for renewable energy sources has seen a dramatic decline over recent years. Renewable Energy Cost Trends Levelized cents/kWh in constant 32000' 40 100 Wind eD PV 30 60 m 20 ~ 40 - w O 10 20 0 0 1980 1990 2000 2010 2020 1980 1990 2000 2010 2020 t o Geothermal o Solar thermal 15 Biomass ~ 50 12 8 ~ 40 9 - ~ 6 30 8 , w 4 20 $ 2 10 3 0 0 9980 1990 2000 2010 2020 1980 1990 2000 2010 2020 1980 1990 2000 2010 2020 Staffs analysis found that the City of Boulder will in fact save substantially by switching to renewable energy. Due to projections from Xcel Energy, fossil fuel prices in our region and elsewhere will continue to trend upward at a rate of 4-7% annually. Energy efficiency and renewable energy could potentially save the city $15.4 million by 20201. S o the city could make a strong argument to make the renewable switch purely on economic reasons. By committing to a goal of 30% renewable energy for municipal operations by 2010, the City of Boulder will once again "lead by example" to help the Boulder community begin this necessary transition. By committing to a goal of 100% renewable energy by 2018 for the city organization, City staff can begin to develop the relationships with renewable power providers, and blend the goal into the ongoing Franchise discussions with Xcel. By committing to these renewable energy goals, greenhouse gas emissions should be greatly reduced. In order to finance future renewable projects, municipalities are faced with unique challenges. Because the city is a tax exempt agency, we are unable to take advantage of tax credits to bring the cost of the project down. These include the Federal Investment Tax credits and accelerated depreciation, both offering substantial incentives for renewable projects. Additionally, high capital expense creates a barrier for self funding. For these reasons, there are several creative options for financing municipal renewable projects: 1 Savings assumes 7% annual growth on both electricity and natural gas costs. Savings was also determined assuming leveling of costs in 2008 through efficiency and renewable projects resulting in a 0% growth. Self-Fund Approach- this would require annual budgeting and hea~ry capital expenses to implement renewable projects. Additionally, the city would assume the liability, replacement cost and maintenance for the life time of the project. Existing Bonding- The city could choose to issue a municipal bond for large scale renewables, which would require voter approval. Clean Renewable Energy Bond-The Energy Policy Act of 2005 provides electric cooperatives and municipalities with Clean Renewable Energy Bonds. A "CREB" is a special type of tax credit bond providing municipalities the equivalent of an interest-free loan for financing qualified energy projects. CREBs are largely modeled on the Qualified Zone Academy Bond program that provides tax credit bonds for school renovation and upgrades in certain qualified school districts. They deliver an incentive comparable to the production tax credit that is available to private renewable energy project developers and investor-owned utilities, which the city is unable to take. Third Party Financing- Third-party financing for renewable power projects can make the high upfront cost of installation, the major obstacle to the city, much more achievable. For the renewable energy market at large, third-party finance directs large amounts of capital into «~°hat is currently a relatively fragmented, inefficient marketplace. In the third party scenario, the city partners ~~~ith an investment,/operator through a Power Purchase Agreement (PPA) for the sale and purchase of the generated power. This type of arrangement places much of the risk (capital investment, replacement cost, maintenance, production) on the third party rather than the city. This is the model utilized for the 75tk' ~?~'aste ~?G'aster Treatment Facility one megawatt solar Pti project, scheduled to begin construction early April, 2008. This model allows the third party investor to take advantage of the tax credits and accelerated depreciation. In order to most quickly and efficiently achieve energy independence for the city organization, it is staffs recommendation that we consider "financing suites'', or efforts to combine several of the above strategies. This diversification has proven most successful for large organizations implementing rene«Table projects. While increased energy efficiency and conservation could substantially cut our current demand for energy, they are not by themselves enough to wean us from fossil fuels. To truly address the supply side of the equation, we will need to generate with renewable sources instead of the natural gas and coal that are primarily used to generate Boulder's electricity today. The steady sunshine and proximity to other attributes that make our region so attractive to live in also make it ripe for energy independence. Renewable energy technologies that harness power from the wind, sun and hydroelectric can contribute to regional electricity supplies, and they won't run out. But while the State is showing leadership in the area of renewable electricity, to truly generate the amount of energy we will need in this region, this effort must come from within our county. In 2006, only about 3 percent of the power from Colorado's electricity grid came from renewable sources: wind and solar, and a small amount of hydroelectric. This hasn't changed much in 2007, however, Xcel has committed to increasing their renewable portfolio in their 2007 Least Cost Resource Plan. The renewable component on the Colorado grid is expected to increase substantially in the coming decades, as State law requires that utilities generate 20 percent of their electricity from renewables by 2020. But with electricity comprising roughly 98% percent (excluding vehicle fuel) of the city's overall energy needs, renewable electricity will, in a business-as- usual scenario, constitute only about 5 percent of our total energy needs which would be met with renewable electricity from the utilities. Our current solar projects scheduled for installation in 2008, when added to the city's existing renewables and wind power purchases, will result in a 5.7% overall renewable component by the end of 2008. In order to continue to move towards energy independence, we need to find other ways to encourage the use and development of renewable electricity above and beyond what state law requires. Wind power offers the most potential today of any renewable energy technology in our region because of its relatively low cost. Other types of renewable electricity -such as the various types of solar power, technologies that convert biomass or waste to energy, and hydroelectric power -are also very promising. Promoting rene«~able energy in our region at such a level will require substantial help from local, state, and federal agencies. Fortunately, Smart Grid technology allows for future renewable expansion. For this reason, Xcel will be a key partner for weaning the city ot~ fossil fuels. Further, unlike States that allow "Community Choice" laws, which gives local governments -not the private utilities control over what type of electricity to use, The city's current Xcel Franchise Agreement requires that large scale renewable energy be provided through Xcel. A key strategy of the future Franchise negotiations will be to alto«~ Boulder to have more choice over the type of power we receive. The following strategy attempts to balance opportunities for future renewable projects with cost implications as well as a public awareness aspect. In other words, the recommended option is based on approximately 85% of the city's future renewable power coming from "least cost per watt" projects, while the remaining 15%, while potentially slightly higher in cost, will take in to account visibility, showcase opportunities and demonstrated commitment by the city. In tackling the ambitious goal of weaning our city from fossil fuels, we first need to recognize the magnitude of the task. In 2006 for example, the city used 26.4 million kWh (or 26,000 MWh) of electricity and 726,679 therms of natural gas of electricity2 (see Fig.l) Figure 1: City of Boulder Energy Use 1998 1999 2000 2001 2003 2004 2005 2D06 kWh 27,810,662 25,174,357 28,542,567 31,310,888 25,088,913 29,264,861 25,905,343 26,467,078 Therms 702,634 671,696 684,031 666,857 763,573 567,391 784,809 746,679 Graph 1 (A}: City of Boulder energy use (electricity) 1998-2006 35, 000, 000 30, 000, 000 25, 000, 000 20, 000, 000 kWh 15, 000, 000 1 O, 000, 000 5, 000, 000 O '1998 '1999 2000 200'1 2003 2004 2005 2006 Graph 1 (B}: City of Boulder energy use (natural gas) 1998-2006 1000000 - 800000 saoooo - 400000 200000 0 1 2 3 4 5 6 7 8 Year As can be seen by the above graphs, in order to replace 140% of the city's annual consumption, the city will need to install or purchase approximately 18 MW of power.'" The z The estimate of 18 Iv1W assumes replacement of city electricity consumption, excluding natural gas and vehicle fuel. following statistics on City energy use suggests a number of measures that, if implemented, could lead to 100% energy replacement or independence, by 2018. In order to make appropriate decisions on a future strategy, the following resource evaluation is presented. While many utilities offer their customers green energy from one or two sources, the city should strongly implement diversification and the creation of Renewable Portfolio that properly evaluates all reliability, cost, and market issues to ensure an effective implementation. For example, a potential biomass renewable project has the potential to offer a steady supply of renewable energy twenty-four hours a day and during peak conditions. Biomass projects offer greater system reliability benefits than other intermittent renewable resources. However, adequate and reliable fuel supply sources are the single most critical factor in determining the economic viability of a potential biomass project, and associated price risks and may prohibit such projects from being developed. The result may be an overdependence on any one renewable source, contrary to the goal to increase supply diversity. The City should maintain its current flexibility in the purchase and development of its renewable resources. As mentioned earlier, due to the higher cost nature of renewable projects, it is necessary to consider longer-term contracts to finance projects going forward. Energy costs Rather than wait until the city is negatively impacted by anticipated rising energy costs, this strategy allows the city to take steps now to manage our energy costs and identify actions that will reduce energy use. Staff undertook a utility bill analysis to determine how the city is spending our energy dollars. Based on the analysis, the city's energy costs have seen a dramatic increase over the past several years. As mentioned earlier, Staffs analysis found projections from Xcel Energy show fossil fuel prices in our region and elsewhere will continue to trend upward at a rate of 4-7% annually. In 2006, for example, Facilities Maintenance and Xcel recommended a increase for budgeting purposes. If this trajectory continues over time, the city could expect to see a more than doubling of the city's utility costs from $1.8 million in 2007 to $4.3 million in 2020. In this scenario, Energy efficiency and renewable energy could potentially save the city $15.4 million by 20203. However, the utility bill analysis below is more than a `snapshot' of current and future energy costs. A renewable strategy paired with strong efficiency measures in city facilities is recommended steps we can take to minimize cost increases. The graph below illustrates the unsustainable nature of growing energy costs over the past several years. While electricity costs have continued to grow, as well as the city's total energy costs overall, Natural Gas costs have remained relatively stable, and even saw a slight decrease in recent years. An announcement by Xcel in mid March 2008, however, suggests that this could be changing dramatically. The Rockies Express pipeline opened in January and started carrying natural gas out of the region. Local wholesale natural gas prices will be increasing significantly, according to s Savings assumes 7% annual growth on both electricity and natural gas costs. Savings was also determined assuming leveling of costs in 2008 through efficiency and renewable projects resulting in a 0% growth. Xcel. Cover the last several years we've enjoyed an extended period where local prices were lower than the national average, but the opening of the pipeline has virtually eliminated that advantage. As a result, Colorado is experiencing higher costs for generation fuel and purchased energy, which will translate into a higher Electric Commodity Adjustment (ECA) in 2008, which is a filing by Xcel with the Colorado Public Utilities Commission (CPUC) to recover dollars associated with rising generation fuel and purchased energy costs. Xcel Energy is required by tariffto file adjustments to its ECA whenever its costs are $40 million greater or less than the funds collected under its Electricity Cost Adjustment clause. Graph 2: City Utility Costs 2004-2407 $5, 000, 000 $4, 500, 000 $4,000,000 • • s ~ s ~ $3,500,000 • ~ . • $3, 000, 000 r • • r ~ $2,500,000 • ' • $2,000,000 ' ~ $1,500,000 $1,000,000 $500,000 _ $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 - electricity cost - - ~ natural gas - - total cost The following Renewable Energy composition lays a path for the city to achieve a 34% energy replacement for municipal operations by 2014, a 54% energy replacement by 2013, 75% by 2416 and 144% by 2418. Large Scale Wind Power: 58% Onsite solar: 3% Lame scale solar: 28% Small scale wind: < 1°!0 Pros: Wind power is economical today in Colorado at good sites and is capable of large- scale generation. Cans: The wind doesn't blow all the time, so it can't be relied on for peak power supplies. Boulder does not have good wind resources for utility scale wind. As such, turbines would need to be located on Colorado's eastern plains or in Southeast Wyoming. Purchase and transmission of large scale utility power is not currently allowed under Boulders franchise ~ Agreement. Transmission constraints are one of the biggest obstacles for wind power in California. In our region, we have plentiful wind, but it's often far from major transmission lines. The cost of building new ~ transmission lines will probably be the biggest obstacle J to new wind farms in our area. However, the cost of transmission is included in the cost of electricity from wind farms, so these costs will necessarily be included ~ ' , _ in ro'ect develo ment considerations. Accordinal = = p J p b Y~ this is an issue that will be handled - from a cost ; - perspective - by developers and is not an issue that J policyrnakers in our county can influence that much. _ _ Wind energy is, however, a major component of our plan for eliminating the use of fossil fuels in Boulder for several reasons. First, it is generally the most economical source of renewable energy, competitive with and sometimes cheaper than electricity from fossil fuels and nuclear power. Good sites can produce wind power at six to eight cents per kilowatt-hour (kWh) -even less when the federal tax credit is factored in. (By comparison, the cost of electricity from a new natural gas plant is eight to nine cents per kWh.) Wind power is expected to become even more cost-effective as the industry develops larger turbines and the price of fossil fuels continues to rise. Second, we have enormous potential for wind power in this region. Colorado is the 11th windiest state in the nation (see figure. For example, a sma1120 megawatt (MW) wind farm consisting of S turbines could theoretically supply more power than the current city's demand for electricity4. It is for these reasons -the competitive cost, the strength of the industry, and the regional potential -that wind power is a maj or component of the city's plan to eliminate the use of fossil fuels in our organization. Staffproposes that the city develop about 10 megawatts of wind power by 2012 from regional sites, enough to meet half of our total current electricity demand. As an alternative, Option B looks at the majority of the city's demand coming from utility scale wind sources, by doubling the amount of energy coming from wind (roughly 20 megawatts total}. a This estimate is based on a 30 percent capacity factor. There are challenges with both of these approaches, however. Transmission constraints are one of the biggest obstacles for z~~ind power in Colorado. In our region, we have plentiful wind, but it's often far from major transmission lines. The cost of building new transmission lines will probably be the biggest obstacle to new wind farms in our area. However, the cost of transmission is included in the cost of electricity from wind farms, so these costs will necessarily be included in project development considerations. Accordingly, this is an issue that will be handled - from a cost perspective - by developers and is not an issue that policymakers in our county can influence that much. The city will need to include the option of potential purchase and transmission of renewable energy sources such as wind power, in the ongoing Franchise Agreement negotiations, as the current agreement does not allow this type of scenario. The city has been approached by several large scale wind developers interested in constructing a new wind farm on the city's behalf. Ongoing discussions with Xcel will Also include the ability to not only transmit and purchase wind power for city needs from these potential sources, but, due to the fact that a large wind project would produce much more than the city organization consumes, we will also discuss the potential to aggregate the power and sell a portion to customers through a PPA or perhaps a city Windsource program. Xcel's announcement of the Smart Grid alters this discussion some~~hat, as the availability of the grid to integrate large scale wind power is a positive opportunity for both Xcel and the city. Some states allow their utilities to offer "green pricing" programs, where a customer can choose to receive more renewable energy than normal. For example, Xcel offers a 144 percent wind power product, Windsource. Generally, participating in this type of option costs a little more, but in some cases customers have enjoyed a discount over regular customers. For example, Xcel's customers normally pay 15 percent more to receive 144 percent wind power, but when natural gas prices peaked in 2445, they paid 15 percent less than other customers for a short time. As natural gas and other fuel costs continue to spiral upward, such cost discounts will become more common. Past staff research has shown that for the city to subscribe to 144% wind power, annual costs would be roughly $254,444 on top of our existing utility expense. It is staffs perspective that this should not be included as the primary strategy for the city, rather, any future wind power purchases come from new wind sources, rather than subscribing to the existing Windsource program. While extremely beneficial as a consumer resource, it is staff's perspective that the city should use its leverage to support the creation of new wind power sources. Small Scale Wind Power: <1% Onsite solar: 3% Large scale solar: 28% - Small scale wind: < 1% Pros: Wind power is economical at a small scale at particular sites and is an excellent public education opportunity. Cons: The wind doesn't blow all the time, so it can't be relied on for peak power supplies; small scale wind power is highly variable in urban settings due to erratic wind patterns created by trees and buildings; municipal code complicates installation due to height restrictions; potential visual and audible concerns. Small wind turbines can be cost- effective at many sites in the city, - particularly at facilities on the eastern edge of the city. Where they do not completely pencil out I) economically, the environmental benefits maybe enough of an education opportunity to persuade a - business or homeowner to make the inveshnent. In addition, facilities in } ~ ~ ~ low-wind areas will be considered for turbines that are designed especially for lower wind speeds. The new small wind turbine costs about $12,000 to purchase and install and can provide enough power far about one third of an average home's needs. Generally, small wind turbines are mounted on a pole away fiom buildings. However, some new small wind turbines are designed to be mounted directly on buildings. Sites being evaluated for small scale wind include: municipal building, Park Central, East Boulder Recreation Center Large Scale Solar: 28°l0 Onsite solar: 3% Large scale solar: 28% Small scale ~~vind: < 1% Pros: Solar photovoltaics, passive solar design, and solar hot water systems are available today as viable options for homes and businesses. Utility-sized "concentrating solar power" can provide large-scale power production at reasonable rates. Cons: The sun doesn't always shine, so solar power is not 100 percent reliable as a power source unless the system has a battery or other type of storage. Although the cost of solar power is dropping, some solar technologies can be expensive. One major advantage for solar power is that many solar techniques and technologies work almost anywhere and can be readily installed on city facilities in our region today. For example, passive solar emphasizes the design and orientation of buildings to take advantage of the sun's energy for heating, cooling, and natural lighting. Solar hot water is an inexpensive low-tech option that uses the sun's rays to heat water for building use. This has been an exhemely beneficial strategy for water heating at the North Boulder Recreation Center, for example. And, of cotuse, solar photovoltaic panels (PV) convert sunlight into electricity. In addition, the city could generate large quantities of solar power through the use of concentrating solar power (CSP). These technologies use mirrors or lenses to focus sunlight on either a central point or a tube filled with oil that toms water into steam, which drives a generator to produce electricity. Of all the solar power options that staff analyzed, CSP is the one that can probably provide us with the most power, reliably, and at the cheapest cost over the long term. The downside to solar power is that some solar technologies are still expensive compared to fossil fuels and other renewable energy technologies like wind power, hydroelectric power and geothermal power. The upside, however, is that costs of development and financing options are changing quickly, making solar technologies increasingly cost-effective. The economics of each type of solar power technology is discussed in detail below. The various types of solar power could provide 10 MW of energy by 2018. As mentioned previously, because the city is a tax exempt agency, we are not able to take advantage of the tax incentives which bring the total cost of the project down. Third Party financing is the most advantageous financing model for this type of project, such as the 75~` Street Wastewater Treatment Plant. Additionally, there is a strong possibility of a joint project between Xcel and the city as part of the renewed Franchise Agreement. Solar Hot Water Solar hot water technologies use sunlight to heat water for later use. There are two general types of solar hot water which the city could take advantage of: solar hot water systems for building use, such as the North Boulder Recreation Center and Concentrating Solar (CSP), which has a much bigger impact of overall energy replacement. Concentrating solar power (CSP) technologies can be a maj or contributor to the city's future . . need for new, clean sources of energy, as reliable and affordable supply of electricity. CSP technology is not widespread in ~ Colorado today and there are no installations in our county, but this technology holds great ~ / promise for large-scale power production at e attractive prices. There is also the potential for ~ ~ smaller residential or busuiess-size applications with some CSP technologies. ~ ~ f 1~Zany power plants today use fossil fuels as a heat source to boil water. The steam from the boiling water rotates a large turbine, which activates a generator that produces electricity. However, a new generation of power plants, with concentrating solar power systems, uses the sun as a heat source. In Boulder, there are two main types of concentrating solar power systems that could be developed: parabolic- trough and dish/engine. Parabolic-trough systems concentrate the sun's energy through long rectangular, curved (U- shaped) mirrors. The mirrors are tilted toward the sun, focusing sunlight on a pipe that runs down the center of the trough. This heats the oil flowing through the pipe. The hot oil then is used to boil water in a conventional steam generator to produce electricity. A dish/engine system uses a mirrored dish (similar to a very large satellite dish). The dish- shaped surface collects and concentrates the sun's heat onto a receiver, which absorbs the heat and transfers it to fluid within the engine. The heat causes the fluid to expand against a piston or turbine to produce mechanical power. The mechanical power is then used to run a generator or alternator to produce electricity. CSP has both advantages and disadvantages compared with other types of renewable systems. Because the lenses must be pointed at the sun, the use of concentrating collectors is limited to the sunniest parts of the country. Tracking of the sun is required to maintain the efficiency. Some concentrating collectors are designed to be mounted on simple tracking devices, but most require sophisticated tracking devices, which limit their use to electric utilities, industries, and large buildings, and require close proximity to the facilities to maintain efficiency. Further, they typically require large parcels of land for construction. C?ne key competitive advantage of CSP systems, however, is that they closely resemble most of the nation's current power plants in some important ways. For example, much of the equipment now used for conventional, centralized power plants running on fossil fuels such as the Valmont Plant, can also be used for CSP plants. CSP simply substitutes the use of concentrated solar power rather than combustible fossil fuels to produce electricity. This "evolutionary" in contrast to "revolutionary" or "disruptive" aspect means CSP can be integrated fairly easily into today's electric utility grid. It also makes CSP technologies the most cost-effective solar option for large-scale electricity generation. Working in partnership with Xcel, staff has been researching concentrating solar power options at various sites in Boulder, most notably in the vicinity of Valmont Butte due to the proximity to the Valmont Power Plant, site orientation and access to infrastructure needs such as high capacity transmission and water. Staff will continue to work with Xcel and local experts to determine the feasibility of a CSP project in Boulder. Sites being evaluated for CSP include: Valmont Butte Solar Photovoltaics (P~') Solar PV converts sunlight into electricity by exploiting the transfer of electrons stimulated by sunlight in certain materials such as silicon. Historically, the expense of solar PV limited its use to space satellites and other remote off-grid sites, where it would be impossible or prohibitively expensive to connect to transmission lines. However, in the last decade, solar PV has experienced major cost breakthroughs, causing the industry to boom in Colorado and around the world. In our state, the boom has also been aided by significant subsidies; without these, solar PV would not be growing at its current rate. Over the last 25 years, solar PV installations have seen steady and, lately, exponential growth in Boulder. If the trend continues, solar PV could contribute a significant share of our energy needs over the next few decades, though it's not at all clear that this trend will continue. While over the long-term the cost per watt for solar PV has been dropping, in 2003 through 2006 the cost rose substantially due to sharply increased demand and the inability of companies to bring on new supplies fast enough.5 Currently, solar PV modules cost about $5.50 a watt, but over the next decade we may see this reduced to $1 a watt as the industry makes improvements to the technology. At this five-fold reduction in price, solar PV would become cheap enough to be an automatic choice for most consumers as well as for the city through large central station generation. On-site (small scale) solar PV: The city can benefit greatly by installing on site solar projects at its facilities throughout the city. This power can be consumed onsite, preventing the energy losses associated with sending an electric cul.7ent long distance through conventional power lines. The city's immediate goal is to identify a.~~., _ - small and mid size facility projects by ~ ~ _ _ ~ the end of 2008, and continue with ~'~'w+~" •T ` ~ - installations utilizing various financing ` mechanisms each year. In 2008, the city will work to pre-qualify one or more solar teams of develo ers to rovide PV p P • ~,.J _ +,a,.~ energy to city facilities, by first - ~-.~~'~~d conducting an engineering study to cietennine which facilities will provide the optimum opportunity to harness solar power while reaping the benefits of renewable energy rebates. Staff is completing the details for the installation of three 10 kw projects to be installed at the George Reynolds Library, Municipal Building and Park Central. Large Scale Solar PV: Large solar projects are generally considered to be those over 100kw. Atypical residential installation is usually sized between 2 and 5 kW, which will meet the electrical demand of 50 to 100% of an average home. As a matter of ~ _ - = comparison, city staff is concluding contractual agreements on three 10 kw systems to be installed ~ at the Re olds Librar the Munici al Buildin ~ . , 1 Yn Y~ P g ~~~~1 J~~~~ ~ and Park Central. On the other end of the spectrum, ~ ~ the 75~' Street Waste water Treatment project when ~ ~ ~ ~ completed, will be a 1 megawatt or 1,000.9 kw ~ system, comprised of close to 7,000 solar panels, covering roughly 7 acres of land. While capital costs are very high, large scale PV arrays are fairly easy to install and connect. Also, utilities can build PV power plants where they're most needed in the grid, because siting PV arrays is usually much easier than siting a conventional power plant. And, unlike conventional power plants, modular PV plants can be expanded incrementally as demand increases. Finally, PV power plants consume no fuel and produce no air or water pollution while they silently generate electricity. This makes PV power an attractive option for utilities or municipalities that want or need to cut fuel costs. Unfortunately, using cunent utility accounting practices, PV-generated electricity still costs more than electricity generated by conventional plants in most places, and regulatory agencies require most utilities to supply the lowest-cost electricity. Furthermore, photovoltaic systems produce power only during daylight hours, and their output thus can vary with the weather. Utility planners must therefore treat a PV power plant differently than they would treat a conventional plant. For the city, we should be considering the installation of large PV systems at places in utility distribution system service areas where the population is increasing rapidly. In these places, using PV systems could eliminate a utility's need to increase the size of power lines as well as entire servicing areas. Installing PV systems near other utility distribution equipment, such as substations, can also prevent overloading of the equipment in the substation. Further, staff is exploring connecting large PV systems to the utility grid in places where they have a higher value. For example, adding PV generation near the places where the electricity is used prevents the energy losses associated with sending an electric current long distance through conventional power lines. This means the PV system is worth more to the utility when it can be placed near the customer. Sites being evaluated for large scale solar include: Valmont Butte, 63'~d Street Waste Water Treatment Plant, Area 3 Reserve, East Boulder Recreation Center, CU-Boulder South Campus, Solar Gardens Staff has been research the feasibility of creating a new market for a hybridized approach to large scale solar PV. In the city of Boulder, there are countless residential and commercial properties that do not have adequate solar access for on site renewables. This could be due in part to site suitability {orientation, shading from vegetation or adjacent structures), legal challenges due to restrictions such as height or neighborhood CCR's, or perhaps due to the fact that occupants of buildings may not have the permission of the building owner. These challenges will be further exasperated in the future as our local codes such as Green Points continue to aggressively require buildings to perform at levels well above the International Codes such as IECC. As performance requirements are ramped up over time, compliance will necessitate the inclusion of on site renewables. For properties without solar access, a condominiumized "PV-garden" could be the solution. In this untested model, residents or businesses could invest in solar PV which would be located at central locations around Boulder, similar to community gardens. The large scale of the projects could dramatically impact purchasing power of investors through the creation of a certain size requirement, resulting in a minimum investment before construction takes place. This economy of scale would result in advantageous equipment purchases, as well as avoiding problematic metering issues for customers. There are several challenges identified with this scenario, none of which are seemingly too difficult to navigate. Metering of the project, financing and site suitability are currently being explored. Staff will continue to research the possibility of such an opportunity, through the creation of a LLC or non-profit to organize and monitor the purchase and installation. Further, staffwill continue to work with Xcel to allow for these types of projects. Hydroelectric Power Cua7~ently, the city of Boulder operates several hydroelectzc facilities that generate power, which is sold to Xcel. These hydroelectrc systems make use of energy from water that is also used to meet the city's water needs; the energy would be wasted if it was not converted to electricity. Nothing else is consumed or emitted in the process. Since 1985, the city of Boulder has run a hydroelectric program to turn water power into electricity, generate revenue, and provide sustainable, non-polluting electricity. Boulder's eight hydroelectric power plants ~ (one purchased and seven constructed over the ~ .~I last 20 years} convert the energy in flowing ~ `fi`n' water into electricity. The seven constructed power plants were r = ~ installed on water supply pipelines that were akeady used to provide water to the city. No ~ new dams or overhead transmission lines -two _ _ of the negative impacts often associated with ~ ' , hydroelectric power -were built. ~ Y3L~ Flotiving tivater spurs a tut~ine, L4~11Ct1 ul t11II1 Sp1I1S The electricity generated by Boulder's an electl•ical generator to produce electricity. hydroelectric facilities is sold to Xcel Energy. Hydroelectric revenues reached $2.1 million for the city in 2006, helping to offset utilities operations and capital costs. These savings are passed onto city water users, who would normally have to pay these costs with higher water bills. In 2004, the renewable energy program generated just over 41 million kilowatt-hours of electricity. To put this into perspective, an average Boulder County household uses about 7,644 kilowatt-hours of electricity a year. This means that in 2444, enough electricity was produced to meet the annual needs of about 6, 844 Boulder County households. Each kilowatt-hour of electricity generated at a coal-fired plant requires the consumption of about one pound of coal and results in the release of two pounds of carbon dioxide - a greenhouse gas -into the atmosphere. In 2444, Boulder's renewable energy production displaced the need to burn 24,544 tons of coal and elirninated the emission of 41,404 tons of carbon dioxide. The environment impacts associated with mining and transporting over 204 railroad cars of coal were also avoided. Aclvantages of Hydroelectricity • Hydroelectricity generation is environmentally and economically beneficial to society. • Hydroelectric power is reliable because it only depends on gravity, water and simple. • Hydroelectric power production is about twice as efficient as thermal production. Boulder's eight hydroelectric facilities convert the energy in falling water into over 42.5 million kilo~~~att-hours of electricity, more than what the city organization consumes. While theoretically, the city could claim that we are already 144% renewably powered, due to the fact that the power is sold to Xcel which in turn, flows onto the grid at large, the generated power was not included in our baseline portfolio. However, because the city negotiated with Xcel to retain ownership of half of the renewable energy credits generated by the hydro facilities, the city's Renewable Energy Credits (Recs) have been included in the Green House Gas inventory. As part of the Franchise negotiation with Xcel, staff will recommend pursuing the full ownership of Recs from the hydro facilities as the contracts with Xcel at each site expire. As can be seen in the charts below, hydroelectric generation will be included in the portfolio when and if the city acquires full ownership of the Recs. 104% by 2018 The following graph shows a strategy for the city to move to 100% renewable power by 2018. It should be noted that emerging technologies and legislative requirements may change this portfolio. More importantly, is the recognition that the city can feasibly and economically replace its consumption with renewable sources at a relatively quick pace. Staff will continue to evaluate options to grow the city's renewable portfolio and create a clear picture of how projects will be developed each year. 25444444 24444404 15400444 p small scale solar 14444444 ~ ¦ large scale solar 5444444 ~ p large scale wind p hydroelectric* 4 -r---,-~--~_- ¦coal-natural gas ~ -i---t--r--~---~ -5044404 coal-natural gas 0 0 ~ c„ ~ small scale solar O O ~ ~ CV N N N N N O 2008 will be a pivotal year for the city's renewable strategy. As city council affirms their desire to wean the city organization from fossil fuels «~hen feasible, staff can begin the strategically implement components of this plan. Achievements in 2008: It is anticipated that the four solar projects referenced above will be implemented in 2008. Additionally, the city will partner to identify other solar opportunities through a solar RFP, as well as the submission for 2.5 MW of solar at other city sites.