4 - Climate Action Plan (CAP) Update CAP Update:
Restructuring the CAP Implementation Plan: Xcel Energy Demand-Side
Management
Based on cost per ton analysis, the CAP recommended energy efficiency as the
best strategy for reducing emissions. As a result, the majority of CAP resources are
focused on programs in this area such as free or subsidized energy audits, technical
assistance with implementing audit measures, development of a qualified network of
contractors to complete the work, and assistance with applying for available rebates. The
programs are similar to many utility demand side management (DSM) programs which
support and encourage investment in energy efficiency. Energy efficiency programs of
this scope and service levels have not been previously available in Boulder.
On August 11`h, Xcel Energy filed their bieruiial DSM plans with the Public
Utilities Commission (PUC), expanding programs for electricity customers and including
programs for natural gas customers. This filing represents a new era in DSM for
Colorado. Xce] will be investing over $28M in natural gas DSM programs in 2009-10.
The plan still needs approval by the PUC, but Xcel is anticipating the programs to begin
in January, 2009. Many of the proposed programs are duplicative of the current and
future CAP efforts, such as free or subsidized energy audits, insulation rebates, Home
Performance with Energy Star, and refrigerator recycling.
Staff is currently evaluating the DSM plan and will propose the most effcicnt
way to maximize participation by Boulder residents and businesses in the DSM
programs. The implementation plan as it is currently written will be revised to
incorporate Xcel's DSM plans. Additionally, staff will have the opportunity to analyze
new program ideas, metric of success, and progress indicators to incorporate into the
CAP.
In 2007, the CAP team has taken advantage of matching grant programs through
the Governor's Energy Office (GEO), such as insulation and solar thermal system
rebates. With a new suite of Xcel DSM programs coming on line, staff will work closely
with the GEO to incorporate programs offered state-wide through their office into the
CAP.
Residential Energy Conservation Ordinance (RECO)
Staff is researching an energy efficiency code which would require certain
standards of energy efficiency for existing homes in Boulder. Typically this is called a
Residential Energy Conservation Ordinance (RECD) and is in place in cities such as
Berkeley, San Francisco, and Burlington. Staff has hired a group of consultants to
research a range of possibilities for implementing a RECO for existing homes in Boulder.
The consultants are researching questions such as:
• Should this code apply to al] housing or only rental units?
• What trigger points could be reasonably used to enforce this code?
• Should the city use both a prescriptive and a performance path`?
The consultants will be returning a range of options for from least aggressive to most
aggressive in relation to possible energy savings. They will also he providing suggestions
on how to incorporate existing and new incentives as well as financing. Staff expects a
report back mid-September and will then analyze the results and hold stakeholder
meetings with the public.
Financing -INCLUDE COUNCIL MEMO AND DELETE THIS SENTENCE
Boulder, Boulder County, Longmont and Lafayette have been working together to
develop a financing model for energy efficiency and renewable energy projects on private
property. The Boulder County Board of Commissioners (BOCC) intends to place a
measure if the November, 2008 ballot for voter approval to create a Local Improvement
District (LID) and issue bonds for the purpose of encouraging and financing energy
efficiency improvements and renewable energy systems on private property. Phis issue is
going before Boulder City Council on September 2, 2008. The memo is included in this
EAB packet.
GREENHOUSE GAS INVENTORY
The most recent inventory was updated to reflect 2007 data using the Inventory
Maintenance System that was developed for the city by a consulting firm named
Econergy. The primary data sources are community electricity and natural gas
consumption from Xcel Energy, CU operations and generation, annual vehicle miles
traveled within city limits from the city's Transportation Division, tons 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 1,976,476 mtC02. The
pie-chart below shows the G1-IG emissions per source of energy and indicates that the
vast majority of the city's emissions are a result of electricity use.
GHG Inventory Breakdown by Energy
Landfill Gas
Vehicle Fuel 3%
21
Natural Gas Electricity
- 60%
16%
According to Xcel's 2007 annual report to Boulder, total electricity consumption
increased by 2.1 % in 2007. Possible, but not proven, reasons for the increase arc
increases in air conditioning from additional systems and longer use, increases in plug
loads, and new constnzetion of homes and commercial space including the 29`'' Street
Mall. The 2007 increase was also impacted by a 13% increase in natural gas use.
Additionally, due to a negotiation with Xcel Energy, the city only received half of the
credits from the energy produced from its hydro facilities.
Transportation emissions peaked in 2002 and have since fluctuated below this level.
2007 emissions decreased by almost 3% from 2006. Overall, it appears that efforts to
reduce vehicle miles traveled and encourage the use of alternatively fueled vehicles is
helping reduce to emissions in this sector.
The community must reduce annual GHG emissions by 495,369 metric tons from 2007
levels by 2012 in order to meet the goals of the CAY. This represents a 25% decrease
from 2007 levels.
Commercial buildings and industrial facilities continue to be the largest source of
emissions at 59% of the total. This year, the commercial, industrial and the CtJ sectors
were grouped into one category after it was discovered that Xcel had previously changed
sector classifications for various Boulder businesses and CU. This put into question the
accuracy of individual emissions each of the three sectors. Combining the sectors creates
consistency for future year to year comparisons. In 2006, the total for the combined
sectors was also 59%. `The chart below shows the 2007 emissions breakdown by sector.
GHG Inventory Breakdown by Sector
Solid Waste 3%
Transportation 21 % l Residential 17% ~
\
I
I
I
i
Commercial and
Industrial 59%
crrY or Bt)tiI.D1N:12
CI"1'1' COUiv(:li, :~C;I?\D:1 I'1'I:Iti1
1~IF,li;~17\G D41"I'I?: Septemhcr 2, ?008
'I At~r:i\DA 'I'I"I'I,E: Consideration of a motion to adopt a resolution supportin 13ouldCr
Count}'s 2005 f3allut Measure l A, ttlst, known as the "I3oultlet• County Clean Ftaergy~ ~
Options Local Itnpro~~cment ll}s#t•ic#"
PI21:S1F;\"1'k:lZ.: Stephanie Grainger, Interim City Manager
Paul ~etherston, Deputy City ~•fanager
Bob Licltem, acting Deputy City ~9ana~er and Finance r)irector
RUM MCI leyscr, Actin'. 1'lannln~ L~irc;ctor
.Jonathan Koehn, Office ul•l~nvironmentat :Affairs 1~tanager
Sarah ~~an.Pelt, T_nvironntental Sustainahility Coordinator
EXEC"l;'I'I~'I S~~iyI~IARY:
"The Rcnlicier I3aard of County Cumntis~ioriCrs (I3O('C') intends to place ~t ntcasure on Ih~
'~ovembcr, 2008 ballot for voter approval to create a Local lmprovcrncttt UisU~ict (l,ll)) turd
issue bonds for the purpose of encouragin~~ at~d financing cner~y efficiency improvetncnts and
rc;newahlc cnr.r~y systems on private property. ~I'ltc enablin, legislation for this type of program
lvas pasSCd by the state at the 2005 legislative session. 'fhe~LID would be managed by Boulder
County. On ;august 2(10$, the BOC'C requested City Council (.1.ttacl~ment Q) to consider a
Resolution, included as Attac}~ment A, in support of the 2008 Boulder County batiot ntEasurc
desi4nated as iV}easure I A. Previous city councils have passed resolutions in support of various
couxtty- ballot issues.
CO'11NIUhITI' SUSTAI\'.~~BIL.1"I'Y :~SSESS1~I:ta~t'['S .~~ll Ii~IYAC'['S:
1+:conomir: The relatively high initial cost of•energy efftcicncy and renewable energy
improvements can be a signilicattt barrier to investment. Ofl'cring below-market financing for
energy efficiency and solar systems in residential and commercial buildings may provide the
incentive to increase the number of propct-ties where investments arc made.
Reducing or stabilizing energy cults supports the city's economic vitality goals by lowering the
Cost of living; in or doing business in E3oulder.
Environmental: 'The city, through its Cltmatc Action Alan (C.':1['), strongly supports energy
efficiency and use of renewable energy as these <.tclions cost-effectively reduce the city's
.AC;~:NllA ITE~'Irl 3~ Page }
~~reenhouse gas eruissiorts aril other enviranntental impacts. l.ow-interest financing removes a
key barrier to achieving C.~~N objectives.
Social: Long teen, low-interest loans attached to properties rath~.r than individuals will address
economic harriers to cner~~y e#licirucy and renewable energy invcstmatt. EZentovin~r barriers to
improve energy efficiency helps residents stabilize volatile utility costs thereby bcneliting the
most vuhterable populations
OTl t l? R l Ili Y:1 C'"1'S:
1+'iscal: I hrs resolution in support o! Boulder County I :1 does not commit the cif}~ linancially to
any new capital or operating costs. 1f the ballot issue passes, all administrative responsibilities
will be managed by Boulder County. T}tcir administrative costs would be recovered throt?gh
interest paid on loans issued to participating property owners.
13():~RD :'1Ni) C();~11IISS1()'~ I~I~;I~;U13AC.K:
l lte )?nvironmcntal :~clvisory Board and C'al' advisory Group have rcceiveti regular updates on
this proicct and memhr:rs have cxprusscd thctr Strom, support for the initiative.
I't.iBLl(' 1~ h:E:~B.AC'K:
~ionc received to date. The public will have the opportunity to vote on the courtly ballot measure
on .~ovcrtlber 2UOS.
.~VALYSlS:
House Hill U8-1 >>0 creates state law authority (or counties and other local gover~nncnts to
provide below rnarkct financing and favorable repayment terms and rrtcthodologics to enable
residents and business owners let install renewable cucrgy systcnts and/or improved energy
eflicicncy capital improvcmcnts on their propei~tizs. The passage o.f the ballot ntcasurc would
allow for the implcntcntation of a pra~~ram similar to the "l3crklcy financutg modcl'~ that was
discussed at the City Council retreat in .lanua.ry of 2UG8.
Cite staff has bceu ~ti~orking closely with Rouldc;r County to take advantage of HB 1350, On
I~ioventber E30C'C' intends to ask voters to approve creation of a (.ln to issue bonds that would
allow financing of rcnc~vable energy and energy e.1~#i.ciency improvcmcnts to residential and
conunercial private properties within the c5sttict. Efthe measure is approved, )vw-interest
financing may adclrc;ss several harriers to achieving greenhouse gas emissions (CiI}(_i) reductions.
Property owners would have the option of appiyittg for a loan front the pro~~ram. Repaymcrtt
could be made over a period of years through an assessrttent on their indivtduul property tax bill.
Property owners that do not choose to participate in the program are not contr~titted to any
acldihonal costs, and would not incur any additional assessment on their property tax bill.
The C'lintatc action }'tan calls Cor significant energy e#1lcicncy imprctvetnents aniJ increased use
ofr~tte~wable energy in existing buildings to meet the. cit}''s <il IG reduction goals. The high
.~1(~I•;ND;1 1TFb1# _ Pa~c 2
initial cost ft~r renewable energy systems and energy efficiency improvements is a common
barrier io making ittvestTlterTts that T~educe ernissiolls. The availability of below market financing
throe<_~11 the Boulder County Clean L:ncr~~y Options Lacal hnprovement District could be an
1I11pO("taTtl Il)OI l0 C0111p)ca2lent 1)Otetlil~l energy efficiency rcquirenlents for existin4; buildings.
NExT sTI~;I~s:
Council is asked to approve the praposcd Resolution (_Attachment A) in support of Boulder
County Issue lA, the Botrlcier County Clean Energy Options Inlpravenlent District. C'otuleil ~~-i11
be asked to discuss the inclusion of Cioulder properties in the L.iD, and the city's financial
contribution to the ln'ograin in Agenda item 3U.
ApprUVed By:
~tephanTe A. (,raTr~ger,
lnicrilll C'it_y Manager
,aT"I'.ACI-TiV'IENTS:
fl,ttachment Resolution in suppo?-t of Boulder County lssuc lA
Attachment B: Letter from Boulder County Board of Commissioners
A(,F.1'DA ITElV9# 3.C Pale 3
• ATTAC1iMENT A
RZi:SOLUTION NO.
A RESOLCTIUN OF THE CITY COUNCIL OF T)EIE CITY OF
BOULDER, COLORADO, IN SUPPORT OF BOULDER COUNTY'S
BALLOT ISSUE lA: BOULDER COUNTY CLEAN ENERGY
OPTIONS LID DEB1' AND MULTLPLE FISCAL YEAR FINANCIAL
OBLIGATION AUTHORIZATION AND IN SUPPORT OF THE
COUNTY'S EFFORTS TO ESTABLISH THE BOULDER COUNTY
CLEAN ENERGY OPTIONS LOCAL IMPROVEMENT DISTRICT.
WHEREAS, pursuant to Part 6 of Article 20 of Title 30, Colorado Revised
Statutes, as amended (the "Act"),Boulder County is authorized to initiate a local
improvement district for the purpose of encouraging, accommodating, and financing
Renewable Energy Improvements and Energy EfFciency Improvements (REIEEI) (both
as defined in the Act); and
WHEREAS, Boulder County desires to encourage, accommodate and provide
financing for Renewable Energy Improvements and Energy Efficiency Improvements
("REJEEI") in the County (the "Project") and accordingly expects to initiate a local
improvement district to be known as Boulder County Clean Energy Options Local
Improvement District (the "District") pursuant to the Act for the purpose of
accomplishing the Project, including paying all costs necessary and incidental thereto;
and
WHEREAS, City Council finds as follows:
1. Coal and natural gas are the principal sources of generation of commercial
quantities of electric energy for the power grid in the western United
States, and home and business consumption accounts for 73% of the
overall usage of electric energy; and
2. Although new building codes can impact energy usage in new structures,
there is a vast quantity of existing structures with many years of'remaining
life before replacement, and these structures at-e not very energy efficient
by today's standards, nor do they have renewable ener.
gy systems installed
to provide some or all of their electric energy needs; and
3- If the United States is serious about moving away from fossil fuels in
order to limit the greenhouse gas effect leading to global warming; the
existing occupied building stock must be retrofitted with energy efficiency
materials and modalities, and significant progress towards provision of
alternative electric energy fbr use in these structures must take place very
soon; and
AGENDA ITEM PAGB
Solving this problem will require creative ways of financing that will
provide incentives for property owners to welt to install RE/EEI now
rather than later; and
S. Existing homeowners, and to a certain extent business property owners,
may he highly leveraged on their properties currently. Even if there is
equity available to further pledge for financing for RE/EEI, a decluiing-
value housing market might discourage property owners from financing
such projects for fear of being unable to realize Buff dent resale value for
these improvements. Since the average homeo~mer moves every 7-9
years, and the expected life of these improvements is 20 - 25 years, and
the energy savings paybacks for at least some of these improvements will
take around 20 - 25 yeat•s, these property owners are unlikely to undertake
home equity fnancing that extends from 20 to 30 years; and
6. Boulder County, the city, and other local governments in Colorado and
elsewhere have attempted to be creative in finding ways to make
incentives for financing these improvements available now, and have
created legal mechanisms, via Colorado House Bill 08-1350, that allow
solar, wind, and other renewable energy and energy efficiency
improvements to be financed by]ocal goverrunents with a repayment over
20 years through special assessments collected via the property tax
collection system. The responsibility far repayment remains with the
property, so that the property owner is not burdened to recover the cost of
such improvements in any resale price. The payment responsibility
remains with subsequent property owners who will benefit from the
annual energy costs savings; and
Boulder County, pursuant to House Bil] 08-1350, will be able to offer; in
part, below-market-rate financing through the creation of funding via
issuance ofdouble-tax-exempt bonds.
WFIEIZEAS, City Council finds that the issuance of~ bonds and the creation of the
Boulder County Clean Energy Options Local Improvement District is in the best intezests
of the residents and property owners of the city.
NUV~%, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BOULDER:
Section 1. The City Council hereby supports BOULDER COUNTY'S BALLOT
ISSU)_'s lA: Boulder County Clean Energy Options LID Debt and Multiple Fiscal Year
Financial Obligation Authorization, submitted for voter approval in the 2008 general
election.
Section 2. The City Council hereby supports the creation of the Boulder County
Clean Energy Options Local Improvement District.
AGENDA ITEM # PACE # S
Section 3. The city shall take such other steps or actions reasonably required to
carry out the terms and intent of this Resolution.
RESOLVED AND PASSED this Clay of , 2UU8.
Mayor
ATTEST:
City Clerk on behalf of the
Director of Finance and Record
Approved as to Form
AGENDA ITEM # ~ PACE