A Review of the Arlington County Community Energy Plan Cheryl Ansell, Jada Breegle, Whitney Hank, Matthew Norwood, and Vestal Tutterow Prepared for Executive Master of Natural Resources Program Center for Leadership in Global Sustainability at Virginia Tech June 2013 Executive Summary Arlington County, Virginia has drafted a Community Energy Plan (CEP) to address current and future energy use, supply, and diversification. Once approved, the Arlington CEP will provide the county with a comprehensive energy and emissions reduction plan. With this plan the community can realize the economic, social, and environmental benefits of energy efficiency, use of diversified resources, and provision of locally generated and transmitted energy. The Arlington CEP also seeks to provide, in a clear and accessible manner, a range of data, policy background, and technical information related to the CEP’s six primary goals and the strategies they have chosen to deploy towards these goals. The purpose of this paper is to review a few key areas of the Arlington County CEP and frame the CEP in the context of prevailing global 2050 trends. Additionally, a brochure suitable for sending to diverse stakeholders has been completed and will be posted along with this document. This review has been completed as part of a course of study in the Executive Master of Natural Resources degree program at The Center for Leadership in Global Sustainability at Virginia Tech in Arlington, Virginia. 2 Table of Contents Executive Summary……………………………………………………………………………………...………….. 2 Table of Contents………………………………………………………………………………………...………….. 3 Introduction…………………………………………………………………………………………….……..………. 4 2050 Trends and Challenges…………………………………………………………………………….….……... 4 Stakeholder Identification and Partnerships…………………………………………………….……….……….. 5 Engagement Strategy…………………………………………………………………………….…………………. 7 Energy Efficiency…………………………………………………………………………………….………………. 7 District Energy……………………………………………………………………………………….……………….. 8 Regional Benchmarking………………………………………………………………………..……………...……. 9 Distributed Generation……………………………………………………………………………………………… 10 Adaptation…………………………………………………………………………………………………...………. 12 Funding………………………………………………………………………………………………………………. 13 Critical Infrastructure……………………………………………………………………………………………….. 13 Conclusion and Recommendations………………………………………………………………………………. 14 Appendices Appendix A – Implementation Plan Review…………………………………………….…….…….….. 15 Appendix B – Stakeholder Analysis……………………….………………………………….…...……. 16 Appendix C – Policy Recommendations and Benchmarks…………………………………………… 17 Appendix D – Listing of Regional County Plans and websites……………………………………….. 17 Bibliography………………………………………………………………………………………………………….. 18 3 Introduction Clean, secure, and affordable energy is central to developing sustainable communities that are healthy for individuals, businesses, and the environment. Globally, climate change is a growing threat, and increasingly, governments are realizing the need to decrease the amount of greenhouse gases (GHG) being emitted into the atmosphere. For more than a decade the United States has struggled without success to pass comprehensive energy and emissions policies on a national level. This inability to work cooperatively politically, economically, and innovatively on the grand scale has 1 inspired others to take action at varying levels of government and society . In the United States, the individual states are often referred to as policy “laboratories”. Now, on issues related to energy and environmental policy, the counties, cities, and communities within states are demonstrating that they are the “proving grounds” for energy policy and innovation. Urban areas make up about 75% of all GHG emissions, which places them in 2 a unique position to reevaluate energy use and make an enormous impact on climate change mitigation efforts . Municipalities, commissioners, and councils across the nation are addressing energy supply, resource diversification, cost security, pollution reduction, and partnership creation across diverse stakeholders in order to create more sustainable communities. Arlington County has demonstrated tremendous leadership in establishing policies, programs, and stakeholder partnerships to address energy efficiency, energy sources, transmission services, and climate change through mitigation efforts. They are working in partnership with regional and local planning bodies, like the Northern Virginia Regional Commission (NVRC) and the Metropolitan Washington Council of Governments, as well as exchanging knowledge with international climate leaders acquire to deploy the strategies and technologies needed to manage natural resources and 3 reduce energy emissions . The extraordinary collaborative effort amongst these leaders has enabled Arlington County to incorporate many innovative solutions to broaden the scope and depth of their CEP. Through the CEP they directly addresses 2050 trends and challenges by planning for resource diversification, developing new energy transmission systems, and increasing the role of public transportation services and land-use planning for mixed-use development. For a brief rundown of Arlington County’s CEP implementation plan, please see Appendix A. 2050 Trends and Challenges As emerging national economies grow and global markets merge, communities around the world will encounter many challenges and trends that will affect the quality of life of their citizens. The challenges will not be the same for all areas; for instance, some nations will face a rapidly aging population while others will be struggling with how to address a rising youth population. In other areas resource demands and limitations will affect the availability of materials and increase 4 price volatility of resources . Understanding the trends that will impact a community is paramount in developing economic, social, and environmental strategies that will ensure vibrant business communities, resilient resource supplies and increased flexible education and work opportunities. Global Middle Class Expansion The ascendance of an emergent global middle class will see consumer demand rise around the world, potentially creating scarcities and other negative impacts for the economic viability of communities in advanced countries. Figure 1 4 Energy Resource Diversification and Local Transmission All of these trends will be impacted by energy demand and supply. Localities that proactively address future energy needs and diversification of their energy resources will be best positioned to adapt to global trends and overcome challenges. A sustainable energy policy will enable localities to address multiple challenges while enhancing economic prospects for the businesses of tomorrow. The charts below depict the current limited resource mix for U.S. communities and the possibilities for future energy diversification initiatives. Current Limitation Future Possibilities Figure 2 Environmental Transition to Clean and Efficient Technologies As communities institute smart growth policies there must also be changes in the strategies communities use to address the effects of household waste, municipal debris, water and air pollution, and resource consumption that accompanies increased population density. Strategies need to be adopted that mitigate negative impacts while protecting and enhancing local ecosystems and the natural services they provide. Synergies between county services should be sought to establish renewable energy sources, develop closed loop consumption processes, and reduce or eliminate environmental impacts. Demographic Change and Workforce Transition Global education and workforce migration is a continuing trend that localities should consider in their long range planning. Attracting quality educational institutions, high-tech industries, and young working families will provide the human capital necessary for the creation of sustainable communities. Communities that provide enhanced quality of life amenities, (including improved green space, and enhanced outdoor activities), develop sustainable infrastructure, and increased public transportation options will attract investment, new residents, and businesses. Upgrades in technology, infrastructure, and quality of life services will require local communities to focus attention on recruiting both educators and businesses in key technology and technical occupations. Education and career opportunities in highly skilled occupations are major challenges that need to be addressed. Communities such as Arlington County should work in collaboration with their citizens and other stakeholders, to address these trends. Stakeholders and Partnerships Partnerships Arlington County has established important partnerships that must be maintained to successfully implement the CEP. These partners include energy companies, local developers, other planning bodies, and the Department of Defense. The partnership with energy companies and local developers is highlighted in the Crystal City Integrated Energy Master Plan. These organizations worked with Arlington County to create this plan. Energy companies and local developers have also taken an active part in the Community Energy and Sustainability Task Force and the follow-on Community Energy Advisory Group. Arlington County also maintains a partnership with the leaders and facilities professionals from the Pentagon and Joint Base Ft. Myer. These are important community members who are not included in the boundaries of the CEP. However, their participation in planning and sharing their experiences can greatly aid Arlington County. These partnerships will be crucial as Arlington County endeavors to achieve its vision of becoming a sustainable community. 5 Stakeholders As Arlington County moves from planning to the implementation of the CEP, it is imperative that the stakeholders are reevaluated for this next stage. Questions will need to be asked throughout the implementation process and mapping the answers will assist in developing engagement and implementation plans for different elements of the CEP. The stakeholders must be analyzed based on what roles they will play in the implementation. What will their contribution be during the implementation? What is their legitimacy as a stakeholder who must be engaged? How willing are they to 5 engage in the implementation? How much influence do they have? Is it necessary to engage this stakeholder? As an example and starting point for the CEP, please see Appendix B for an in depth analysis of stakeholders and Figure 3 below for a mapping of stakeholders. High Advisory' Group' Energy' Companies' Builders/' Developers' Expertise Businesses' Residents' Arlington' County' Board' Arlington'' NonFprofit' County'' OrganizaAons' Board' Regional' Bodies' EducaAonal' InsAtuAons' State'' Leaders' Federal' Government' Energy' Professionals' Professional' OrganizaAons' Chamber'of' Commerce' State' Government' Low Low Willingness High Figure 3: Stakeholder Mapping: A mapping analysis visually depicts the current engagement level of various Arlington County stakeholders in relation to their support and involvement with the draft Arlington County CEP. Arlington County is a proven leader in building stakeholder relationships and engaging in community partnerships to achieve economic, social, and environmental goals. While there are documents posted on Arlington County’s government website that acknowledge these relationships, their omission from the CEP, is noticeable and inclusion would contribute both legitimacy and educational value to the CEP. Many of the primary stakeholders are known throughout the community and other stakeholders could benefit from the development of relationships built around shared interest in the CEP. 6 Engagement Strategy Arlington County plans on reaching out to stakeholders through electronic and print media. They will utilize techniques and lessons learned from Arlington County’s Participation, Leadership, and Civic Engagement (PLACE) initiative (http://arlingtonplace.us/). The primary goal of the PLACE initiative is to strengthen community and commercial stakeholder participation and collaboration with civic leaders and to refine existing collaboration processes so these stakeholders are more successful in their interaction with county government. Arlington refers to its tradition of government-community dialogue and collaboration as “The Arlington Way”. One of the highlight strategies is a series of “Green Games”, friendly competitions and training exercises for businesses and residents to promote voluntary reduction of energy use and costs. In addition to the planned use of websites and social and print media to reach out to stakeholders, the county can likely piggyback on existing PLACE forums and other online presence. Other potential tools include further community events, partnerships with workforce investment boards and other groups, and collaboration with APS’s career center. Figure 4 The PLACE Initiative is a solid foundation for outreach initiatives centered on the CEP. Active engagement of stakeholders will help focus the CEP and increase the likelihood of stakeholder buy-in during implementation. Arlington County should work proactively bring prospective businesses and other representatives from the business, technology, and defense industrial sectors to existing PLACE forums and Green Game. Energy Efficiency Arlington has set aggressive, incremental goals towards energy efficiency. Their highlight goal is to reduce energy use of buildings per square foot by 55-60% by 2050 from 2007 levels. As they discuss in the CEP, this strategy will enhance energy security, economic competitiveness and the environment. However, the plan can be more compelling by expanding on the economic benefits of increasing energy efficiency, and outlining a business case for the strategy, such as reduced energy costs and enhanced energy security. There are also benchmarks the CEP can highlight to better communicate these benefits. In New England, investments of around $16 billion in energy efficiency in six states over 15 years are estimated to result in increased economic activity of around $162 billion as consumers spend energy savings in the local economies. Figure 5 Furthermore, all of these improvements in energy efficiency and transportation will attract residents and businesses, as they make Arlington more economically competitive with their surrounding counties. Employers will be drawn to Arlington’s lower energy costs and will want to conduct their business in the county, bringing more jobs to the county. Improved economic competitiveness is a strong motivator for many stakeholders, and Arlington will benefit greatly by showcasing the evidence of economic success through energy efficiency. 7 District Energy Existing district energy (DE) systems in Copenhagen, Denmark and in St. Paul, Minnesota can serve as strong benchmarks for Arlington County. Both DE systems provide heating and cooling, as well as electricity through combined heat and power (CHP) facilities. Copenhagen’s system began as steam distribution and is being converted to a hot water system, which has proven to be more efficient with less maintenance issues. Copenhagen’s DE system has grown and evolved to provide heat to 98% of the city and cooling to 30%, it now includes four CHP facilities providing 1,800 MW of combined electricity and heat, and three waste incineration facilities providing additional electricity and heat.. St. Paul’s district energy system provides heat to 80% of the buildings in St. Paul and surrounding areas, while district cooling serves 60% of the area. A CHP plant came on-line in 2003, and solar hot water became a part of the system in 2011. This is the largest district heating system in North America. The selection of DE as a source of electricity, heating, and cooling for portions of the county demonstrates Arlington’s level of commitment to diversifying their energy resources and improving the efficiency of their energy transmission systems. Figure: 6 Figure 6 8 Regional Benchmarking Moving toward 2050, energy policies will have a growing effect on determining the economic outcomes for stakeholders living, working, or operating businesses in a given locality. Communities that prepare for future energy needs, diversify their energy supply, and provide cleaner healthier environments will have the advantage when it comes to attracting new businesses and residents. Arlington is well positioned to be both an energy and environmental leader as well as force multiplier for advancing energy policy and innovative solutions in the capital region. They would be well served to highlight this advantage with regional benchmarking. In order to compare and contrast components of Arlington’s plan in relation to those of their regional neighbors, a 30-point checklist was designed that includes many best practice energy policies and local strategies. Using the best readily available information, the contents and features of nine capital region counties were compared. The availability of energy policies varied, and when specific energy plans or policies were available, there were vast differences in content, strategy, scope, and comprehensiveness. Despite this limitation in information availability, the resulting table clearly demonstrates the strength and scope of the Arlington County CEP. ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Reporting mechanisms proposed Funding analysis ✓ District Energy / Combined Heat & Power Initiatives (DE / CHP) Benefits of DE / CHP clearly defined Renewable energy diversification and deployment policy Planning for “Large Scale Projects” Specific project recommendations details provided Energy strategies addressing transportation issues incorporated Energy policy for county government facilities, fleets, and services Synergies across non-transportation public service sectors. Biomass, geothermal, and other alternate energy sources Energy labeling initiative Broad outreach engagement strategies or resources provided Residential weatherization and renewable energy deployment strategy Community energy auditors and / or weatherization personnel trained ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Frederick ✓ Charles Loudoun ✓ Montgomery Fairfax Specific energy plan provisions available Energy policy is a component of a strategic or comprehensive plan Specific energy plan or policy Purpose of energy plan detailed Broad goals presented Specific governing terminology defined (policy, tool, goal, etc.) Energy history or baseline provided Clear and detailed goals outlined Benefits to implementing a Comprehensive Energy Plan provided Reductions to peak load information highlighted Benchmarks for energy plan elements / goals (internal and external) Target for emissions reduction goals clearly defined Energy efficiency standards and measures defined Building efficiencies defined and energy use targets established. Prince George’s Arlington Energy Plan Elements Maryland Stafford Virginia Prince William Regional Benchmarking ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Figure 7 (see Appendix D for citations and websites) 9 Distributed Generation Distributed generation is when electricity or heat is generated and fed directly into the grid, rather than produced in bulk at a separate location and transmitted in. As opposed to bulk-generated power, DG energy often originates from both utility and ratepayer projects. DG can provide a variety of benefits and services, some of the 6 most important of which are summarized in the Department of Energy (DOE) table below . Figure 8: Benefits of Distributed Generation U.S. Department of Energy, The Potential Benefits of Distributed Generation and Rate-Related Issues That May Impede Their Expansion [February 2007] DG technologies provide services that meet all three of the Arlington CEP’s core goals. DOE identifies three categories of distributed generation, including emergency power units, district energy and on-site DG. Arlington is already pursuing district energy, while emergency power units are usually approached on a per site basis. However, the CEP contains little to no plans for implementing on-site DG, especially small scale photovoltaic solar arrays, even though on-site DG is a frequently applied method in many other community energy projects. On-site DG includes PV solar arrays, micro-turbines and fuel cells, as well as CHP. Fuel cells are a developing technology and Arlington County has dismissed distributed wind energy due to a general shortage of this resource in their area. The CEP implementation plan approaches renewable energy generation from the perspective of large-scale solar PV systems. As the CEP notes, as of now, purchase power agreements and a mandatory renewable energy portfolio have not been adapted or allowed by law, limiting the potential of such projects. That leaves most of the short and medium term renewable energy development potential with smallscale distributed solar. The implementation plan proposes the use of a few renewable energy technologies in residential settings, including solar thermal water and space heating systems, and increased use of day lighting in architecture, but small-scale PV is noticeable omission. The Arlington Initiative to Rethink Energy (AIRE) has also seems to treat distributed solar as a low priority. This is likely because in addition the legislative barriers to development there is a more immediate and substantial challenge towards implementation of small-scale PV and Arlington’s other DE projects, namely the risk of damaging Arlington County’s relationship with its local utility. Arlington County has a strong relationship with Dominion Virginia Power and likely wants to avoid unilateral adaption of distributed generation in order to preserve this relationship. Unfortunately, DG technologies, as well as strong energy efficiency advances, may represent a threat to Dominion’s current business model. The Edison Electric Institute (EEI) is an associate of shareholder-owned electric companies of which Dominion is a member. 10 The EEI provides policy leadership, research services and strategic business intelligence to its member. Their report, “Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Retail Electric Business”, discusses the risks DG may represent for a utility. Distributed energy generation and energy efficiency projects reduce a utility’s revenue, which in turn leads to increased rates for energy users who have not implemented such projects. Higher rates incentivize further adaption of DG and energy efficiency and can lead to 7 a negative cycle. Over time this cycle can also affect credit ratings and scare off utility investors . Figure 9: Electric Utility Disruptive Forces EEI Visual of Downward Spiral http://www.eei.org/ourissues/finance/Documents/disruptivechallenges.pdf While it may initially seem like the EEI and power utilities have contrarian goals to the CEP, and indeed the EEI’s analysis is heavily focused on the risks of these initiatives, there are also substantial benefits for utilities in supporting distributed generation projects. Crossborder Energy, a North American energy consulting company, 8 evaluated the benefits and costs of California’s net energy metering (NEM) initiative . NEM allows ratepayers who generate electricity to receive financial credit for power generated by an onsite system and fed back the utility, and historically is the primary mechanism by which owners are reimbursed for DG projects. Crossborder concluded that NEM does not produce a cost shift to non-participating ratepayers, and actually provides a small net benefit on average across a utility’s residential markets, completely avoiding EEI’s projected downward spiral. The primary benefit for utilities is the reduction of future load requirements, avoiding costs that would be shouldered by all ratepayers for large energy projects. For example, Dominion primarily uses coal to generate electricity. In light of ever more stringent emissions standards as well as the age and potential renovation needs of heretofore grandfathered plants, Dominion will likely need to offset substantial transmission losses in the near future. As with CHP, solar PV also provides a peak demand energy resource that can offset costly surge generating capacity. Crossborder identified several other benefits, including avoided capacity costs for generation, reduced costs for ancillary services, lower line losses on the transmission and distribution system, reduced investments in transmission and distribution facilities and lower costs for the utility’s purchase of other renewable generation. If properly implemented, distributed generation and strong energy efficiency initiatives can be very beneficial for both the public and investor owned electrical utilities. The primary barrier to such a program is misunderstanding and inflexibility between communities and their utilities. To this end, we would advise Arlington County to proactively engage Dominion Virginia Power to form an open, collaborative public-private partnership that will further the long term goals of both parties. 11 Adaptation Although this report lays out the components of the CEP, any long term planning must consider the impacts of climate change on the county, including the county’s energy infrastructure, and address the measures necessary to minimize those impacts. 9 According to a report by the Metropolitan Washington Council of Governments , by 2030, sea levels in the mido Atlantic region may rise from 4 to 12 inches, average temperatures may increase by 1.8 to 2.7 F, precipitation may increase by up to 8%, and runoff may increase by up to 6%. No amount of energy and environmentally focused actions by Arlington County alone will halt these regional climate change impacts. The county must prepare for and try to minimize the impacts of these changes. Any new district energy facilities and distribution networks must be strategic in their siting and construction, considering the long-term impacts of rising sea levels, storm surge, and storm water runoff. Boilers and CHP systems must be protected from these impacts. Underground distribution networks must be designed to be floodresistant and capable of quickly removing any floodwaters that enter the networks. With the high-density areas of Crystal City and Roslyn located near the Potomac River, these potential impacts are very real. Climate change will also impact transportation in the county. Rising temperatures could increase the frequency of buckling (warping) rails on the Metro system, and add stress to bridges and asphalt roadways. Increased temperatures will increase demand for air conditioning, so building energy policies as well as the district energy planning should account for this impact. Beyond energy infrastructure, climate change will impact the citizens of Arlington and its ecological systems. The 10 City of Alexandria’s Energy and Climate Change Action Plan considers climate adaptation and includes a preliminary list of five impacts from climate change along with a number of actions to help the city prepare and minimize the impacts. Given the proximity of Alexandria to Arlington, these same actions can be pursued by Arlington County. In addition, the city of Flagstaff, AZ provides a good example, as summarized in the text box above. Highlight: Flagstaff, AZ Climate Adaptation Planning ! The City of Flagstaff, AZ has taken a different and promising approach to adaptation planning. They completed a Resiliency and Preparedness Study in September 2012. The study identified vulnerable areas and assessed the risks of climate impacts. Experts from the city including people from public safety, economic development, public works, planning, finance, and utilities created the vulnerability and risk assessments In addition, the team included the National Weather Service and the county emergency management and public health officials. The study made several important recommendations. One recommendation was for the City of Flagstaff to “build resilience by incorporating planning for future climate into all City functions.” 11 A second recommendation was that the “City Council adopt guiding policy statements so that all future City plans and projects incorporate and account for the direct and indirect impacts of changes in precipitation and temperature.”12 The City Council accepted both of these recommendations. They adopted a policy that, among other things, mandates the institutionalization of resiliency into city decisions.13 There are several elements that make the City of Flagstaff’s approach different. First, they don’t use the words “climate adaptation”. They talk about vulnerability and resiliency. They focus on the impacts, not on the climate changes. Second, they did not create a plan. Instead, they will incorporate resiliency into all city plans using regular planning processes. ! Figure 10 12 Funding The Arlington CEP has a brief section on funding for the energy plan projects. The county proposes funding the plan with the General fund and the Capital Improvement Program for long-term projects. This essentially involves creating a budget for the projects. Discussion is minimal on where the funds will originate, although there is also mention of funding through state and federal grants. Another indirect funding source is through Arlington’s density incentives. The county offers developers a density bonus in exchange for building energy efficient and Leadership in Energy and Environmental Design (LEED) certified buildings. This takes the financial burden off the county and transfers it to developers that were already going to be building. In addition, higher density buildings will have an added benefit of housing more residents to increase tax revenue that could be funneled into the energy plan budget. As this is an ambitious proposal that will require much planning and implementation, funding is key to its feasibility and sustainability. Arlington should outline in more detail its plans for funding the CEP. There are many options in existence from which to pursue. Federal funding sources should be explored. Additionally, government bonds 14 can be issued for certain projects by the county that are tax-exempt and low interest . Alternative funding methods can include the continued establishing of private and public partnerships to leverage financial resources and staff. In addition, the EPA suggests in its CHP Handbook using a third-party financing entity that will measure the expected results and benefits of the project such as DE or CHP rather than the worth of the project developer. Therefore, there is less risk since debt is paid back by profits generated by the project. Lastly, implementing a “carbon tax” on residents, such as what is done in Colorado, can serve as both a funding source and incentive to reduce GHGs. This, however, might meet barriers at the state government level. If that is the case, there is still an option to implement System Public Benefit Charges (SPBC), which are fees collected by 15 the energy provider from ratepayers, rather than taxes collected by the government . Then the money collected is often invested back into programs that benefit the ratepayers. This could provide a steady source of funding for long-term energy efficiency projects. Critical Infrastructure The Patriot Act of 2001 defines critical infrastructure as “systems and assets, whether physical or virtual, so vital to the United States that the incapacity or destruction of such systems and assets would have a debilitating impact on security, national economic security, national public health or safety, or any combination of those matters” (Public Law 107-56, Sec. 1016(e)). According to Presidential Decision Directive 63, critical infrastructures include “telecommunications, energy, banking and finance, transportation, water systems and emergency services, both governmental and private” (Presidential Decision Directive-63, section I). Arlington County contains critical infrastructure and the Arlington CEP promises energy security. The case could easily be made in the Arlington CEP that district energy and combined heat and power are a mechanism to protect critical infrastructure and thus, make Arlington a preferred location for businesses including those in the financial sector. The extent of critical infrastructure and facilities in Arlington may provide rationale for seeking federal funding, with the Patriot Act in mind. Various distributed generation techniques can serve to bolster energy security. The Department of Energy has a new report released in March 2013 – DOE SEE Action Report – Guide to Successful Implementation of State 16 Combined Heat & Power Policies . According to the report, Texas now requires all government facilities that are critical in an emergency situation to have a CHP feasibility study prior to construction or major renovation. This requirement became effective in September 2009. Louisiana enacted a similar law in August of 2012. Such requirements for protecting power to “critical infrastructure” could be considered by Arlington, and could cover federal facilities in addition to county facilities. 13 Conclusion In many ways, Arlington County has set the gold standard when it comes to energy planning. Their efforts are quite comprehensive in scope and lays out ambitious yet achievable goals. Having reviewed the CEP and companion Implementation Framework, the plans of other municipalities, and related reports and other documents, the Blue Blocks team provides the following recommendations. Recommendations • Arlington should consider adding a stakeholder review to either the CEP or the Community Energy Implementation Framework. • As Arlington County moves into climate adaptation planning, it is recommended that the County conducts an analysis of stakeholders specifically around adaptation. This will most likely include groups that are not stakeholders in the current CEP (i.e. public safety, emergency management, National Weather Service, public health). • Arlington should consider focusing more on explaining the economic benefits of increasing energy efficiency as an added business angle. • Revisit distributed generation and start talks towards a public-private partnership with Dominion to alleviate their concerns. • Proactively bring prospective businesses or other representatives from the business, technology and defense industrial sectors to existing PLACE forums. • Support specific legislative policies at the state level (see Appendix C). • The existing district energy systems, such as in Copenhagen, Denmark and St. Paul, Minnesota, can serve as excellent benchmarks for Arlington County. We recommend pursuit of district energy assuming the outcomes and recommendations from the Crystal City Integrated Energy Master Plan are favorable toward district energy. • We recommend that Arlington include in its energy plan provisions that provide resiliency to the risks of climate change to the county's buildings, infrastructure, ecosystems, and residents. • Arlington should outline in more detail their plans for funding the CEP with alternative sources in mind. 14 Appendix A: Implementation Plan Review Arlington County has set aggressive, incremental goals towards energy efficiency, energy security and C02 reduction in several key areas. Their goals, policies and strategies are organized in the table below: Goals and Policies Strategies Goal: Increase the energy and operational efficiency of all buildings Policies: Ensure buildings on average use less energy per square foot as compared to 2007 baseline (63 kBtu/square foot): • 2020 – 5% reduction • 2030 – 25% reduction • 2040 – 40% reduction for residential, 45% reduction for non-residential • 2050 – 55% reduction for residential, 60% reduction for non-residential Reduce carbon intensity of source energy • • Goal: Increase local energy supply and distribution efficiency in Arlington using District Energy (DE) Policies: • Facilitate the installation and use of district energy in areas with high potential for DE. At least 450 megawatts (MW) connect load of DE and 104 MW of Combined Heat and Power (CHP) by 2050 • Plan and build infrastructure in appropriate locations to facilitate DE distribution and connection • • Goal: Increase locally generated energy supply through the use of renewable energy options Policies: • Become a solar leader with installation and use of 160 MW of solar electricity by 2050 • Increase the use of renewable energy technologies in the public, private and non-profit sectors Goal: Refine and expand transportation infrastructure and operations enhancements Policies: Increase carbon efficiency of transportation from 2007 levels of 3.7 mtC02e/capita/year: • 2020 – 2.7 mt • 2030 – 2.0 mt • 2040 – 1.7 mt • 2050 – 1.0 mt • • • • • • • • • • • • • • • • • • • • • • • Goal: Integrate CEP goals into all County Government activities Policies: Reduce county government C02 emissions compared to 2007 baseline: • 2020 – 25% below • 2030 – 42% below • 2040 – 59% below • 2050 – 76% below Integrate CEP policies into county planning, • • • • • • Renovate existing buildings Encourage new buildings to be designed, constructed and operated more efficiently Ensure compliance with building code previsions Ensure equitable access and use of all income levels to efficiency programs Use land use development process to create more energyefficient buildings Promote widespread use and display of EPLs Encourage use of low carbon fuels Reduce energy intensity in County and APS buildings and operations Create a DE corporation to own DE system Build, operate and maintain DE and CHP systems as opportunities arise Encourage DE ready construction and renovation Establish a process and guidelines for buildings to connect to DE systems Develop a DE infrastructure plan in coordination with other county departments Coordinate the installation of DE distribution pipes and other infrastructure Link DE/CHP to streetcar lines and other transportation infrastructure Revise Arlington County Code to reflect CEP goals Incentives for renewable energy generation Eliminate regulatory and legislative barriers to increase renewable energy production Encourage development industry to integrate renewable energy tech and best practices into the design process Partner with utilities to increase and optimize use of renewable energy Encourage solar hot water and other renewable technologies Support existing MTP policies, including integrated transportation and land use, Complete Streets, management of travel demand, support of alternatives to car ownership, etc. Support federal and state efforts to increase vehicle fuel efficiency Increase fuel and operational efficiency of County and APS fleets Operate and maintain traffic infrastructure with an eye toward energy and fuel efficiency Increase availability of reduced-carbon content vehicle fuels Work with regional organizations/individual jurisdictions in the DC metro region to address transportation issues Propose state and federal regulatory and legislative remedies to achieve CEP goals Fund CEP implementation Work with regional organizations/individual jurisdictions in our metro region to address energy issues Develop and coordinate financial incentive programs Retain existing and attract new businesses and jobs through CEP implementation Strengthen partnerships with colleges and universities to identify opportunities to reach CEP goals 15 policy development and other activities. Take advantage of CEP implementation to ensure Arlington’s long-term economic competitiveness. Goal: Advocate and support personal action through behavior change and effective education Policies: • Engage and empower individuals to reduce energy use • Enhance level of professional expertise and fork force in community related to energy • Ensure recognition of extraordinary efforts made to help the community reach CEP goals • • • • • • • Raise personal energy literacy among all populations Be a trusted and leading source of energy information Maintain and build partnerships Engage the public through electronic and print media Collaborate with Arlington Public Schools local colleges/universities to provide energy education Partner with stakeholders to develop/provide energy training and courses and to map workforce development Encourage energy conservation and efficiency though recognition of success Figure 11 Appendix B: Arlington County CEP Stakeholder Analysis Contribution (Expertise) Legitimacy (Expertise) Willingness to Engage Influence (Value) Residents Businesses Builders/Developers Energy Companies Chamber of Commerce VA State Leaders State government Arlington County Board Arlington County Government Community Energy Advisory Group Professional organizations (i.e. NAIOP) Non-Profit Organizations (i.e. APAH, ACE) Energy Professionals/Tradespeople Regional bodies and individual jurisdictions Educational Institutions Low Low High High Low Low Low Low High High High Medium Medium Medium Medium High Medium Medium High Medium High Low Low High Medium Medium High Low High Medium Low Medium Necessity of Involvement (Value) High High High Medium Medium Medium Low High Medium Medium High Low High High Medium High Medium High Low Medium High Medium Low Medium Medium High Medium Low Medium Low Medium Medium Medium Medium Medium High High Medium Medium Low Medium Medium Medium Federal Government Low Medium Medium Medium Medium Stakeholder Figure 12 16 Appendix C -‐ Policy Recommendations and Benchmarks It is recommended that Arlington County include a legislative engagement strategy to champion in Richmond as a goal area in the CEP. This CEP goal section will need to develop and define the criteria necessary to support specific policies at the state legislative level. Policy initiatives should look to advance the goals of the CEP and the energy choices available to Arlington residents. Some policy areas that should be considered for inclusion are: Incorporate the International Energy Construction (Conservation) Code 2012 in the state building 17 code – expected by 2015 – (S1.3) Allowance of Property Assessed Clean Energy (PACE) financial incentive program – (S1.4) State provided tax credits and incentives for renewable energy technology – (S3.1) Allowance of Power Purchase Agreements – (S3.2) 18 19 20 Mandatory Renewable Portfolio Standards for the state – (S3.2) 21 Enabling legislation for micro-lending programs for energy technology upgrades. Enabling legislation, which allows for the development and implementation of alternative energy sources and the new technology jobs they create. Grants to fund the CEP or portions of the CEP Legislation requiring all government facilities to have a CHP feasibility study prior to construction or major renovation. Individual, or packaged elements of complementary provisions should be included to demonstrate direction and commitment in advancing innovative, long-term energy planning. Appendix D – Regional County Plans and Website Links Arlington County, VA Community Energy Plan: Draft November 2012 Charles County, MD Charles County Comprehensive Plan http://www.charlescountyplan.org/images/document_library/Comp%20Plan%20Edits%20Combined.pdf Fairfax County, VA Fairfax County Energy Plan http://www.fairfaxcounty.gov/living/environment/county-energy-policy.htm Frederick County, MD 2010 Comprehensive Plan http://frederickcountymd.gov/index.aspx?NID=3657 Loudoun County, VA 17 Loudoun County Energy Strategy http://www.loudoun.gov/documents/105/108/Energy%20Strategy.pdf Montgomery County, MD Department of Environmental Protection http://www6.montgomerycountymd.gov/mcgtmpl.asp?url=/content/dep/energy/energyL2.asp#policy Prince George’s County, MD Energy Efficiency & Conservation Strategy Report http://www.princegeorgescountymd.gov/Government/AgencyIndex/DER/energy-strategy-report.asp Prince William County, VA Strategic Plan: Community Development http://www.pwcgov.org/government/dept/oem/Documents/008478.pdf Stafford County, VA Comprehensive Plan 2010-2030 http://co.stafford.va.us/DocumentCenter/Home/View/1310 Bibliography & Figure Credits 1 Francis, Nathan and Richard C. Feiock (2011) A Guide for Local Government Executives on Energy Efficiency and Sustainability. IBM Center, The Business of Government 2 Bulkeley, Harriet. (2010) Cities and the Governing of Climate Change. Annual Review of Environment and Resources. 35:229–53 3 Medearis, PhD., (2012) Northern Virginia Region Applies Global Lessons. Nation Cities Weekly. National League of Cities 4 Dobbs, Richard, Jeremy Oppenheim, Fraser Thompson, Marcel Brinkman, and Marc Zornes. 2011. Meeting the World’s Energy, Materials, Foods, and Water Needs. McKinsey Global Institute: McKinsey Sustainability & Resource Productivity Practice. 5 Morris, Jonathan and Farid Baddache. Back to Basics: How to make Stakeholder Engagement Meaningful for Your Company: BSR, 2012, www.bsr.org; pg. 10. 6 United States. Department of Energy. Potential Benefits of Distributed Generation and Rate-Related Issues That May Impede Their Expansion. 2007. Print. <http://www.ferc.gov/legal/fed-sta/exp-study.pdf 7 Kind, Peter. Energy Infrastructure Advocates. Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Retail Electric Business. Prepared for the Edison Electric Institute (EEI), 2013. Print. < http://www.eei.org/ourissues/finance/Documents/disruptivechallenges.pdf>. 8 Beach, Thomas, and Thomas McGuire. Crossborder Energy. Evaluating the Benefits and Costs of Net Energy Metering in California. Prepared for the Vote Solar Initiative, 2013. Print. <http://votesolar.org/wpcontent/uploads/2013/01/Crossborder-Energy-CA-Net-Metering-Cost-Benefit-Jan-2013-final.pdf>. 9 Metropolitan Washington Council of Governments. 2008. National Capital Region Climate Change Report. http://www.mwcog.org/environment/climate/adaptation/Additional%20Relevant %20Information/NtlCapClimateChangeReport.pdf 10 City of Alexandria. 2011. Draft Energy and Climate Change Action Plan 2012 - 2020. http://alexandriava.gov/uploadedFiles/tes/eco-city/DraftEnergyClimateActionPlan03.14.2011.pdf 11 City of Flagstaff. City of Flagstaff Resiliency and Preparedness Study, 2012. Page 21. http://www.flagstaff.az.gov/DocumentCenter/Home/View/38841 12 Ibid. 18 13 Burke, Kevin. City of Flagstaff Resiliency and Preparedness Initiative. Slide 9. http://www.cspo.org/library/author/?action=getfile&file=676§ion=lib 14 “CHP Project Development Handbook,” http://www.epa.gov/chp/documents/chp_handbook.pdf 15 “Energy Efficient Governance,” http://www.iea.org/publications/freepublications/publication/eeg.pdf 16 U.S. Department of Energy. 2013. DOE SEE Action Report – Guide to Successful Implementation of State Combined Heat & Power Policies. http://www1.eere.energy.gov/seeaction/pdfs/see_action_chp_policies_guide.pdf 17 Arlington County. Arlington County Community Energy Implementation Framework, http://freshaireva.us/wpcontent/uploads/2013/05/CEP-Implementation-Framework-DRAFT-May-13.pdf, pg. 4 18 Ibid. pg. 4 19 Ibid. pg. 13 20 Ibid. pg. 14 21 Ibid. pg. 14 Figure Credits Figure: 1 - Fisher, Max, and the Washington Post Foreign Staff. The Coming Realignment of World Powers, Foretold in Charts, The Washington Post, section: World Views, December 11, 2012. http://www.washingtonpost.com/blogs/worldviews/wp/2012/12/11/the-coming-rise-and-decline-of-worldpowers-foretold-in-charts/, accessed April 15, 2013. Figure: 2 – Ansell, Cheryl - created for this review. Figure: 3 – Breegle, Jada – created for this review Figure: 4 - Arlington County Environmental Services Department, 2012. Arlington Green Games Inaugural Awards Ceremony, website photostream, http://www.flickr.com/photos/arlingtondes/sets/72157629360044814/ Figure: 5 - Boutique Hotel Stadthalle Vienna, Austria http://www.solarfeeds.com/hotels-embrace-solar- across-the-world/ Figure: 6 – Arlington County, VA Community Energy Plan Figure: 7 – Ansell, Cheryl – created for this review Figure: 8 - Benefits of Distributed Generation U.S. Department of Energy, The Potential Benefits of Distributed Generation and Rate-Related Issues That May Impede Their Expansion [February 2007] Figure: 9 - Figure: 9 Electric Utility Disruptive Forces EEI Visual of Downward Spiral http://www.eei.org/ourissues/finance/Documents/disruptivechallenges.pdf Figure: 10 - Burke, Kevin. City of Flagstaff Resiliency and Preparedness Initiative. Slide 9. http://www.cspo.org/library/author/?action=getfile&file=676§ion=lib Figure: 11 – Norwood, Mathew – created for this review Figure: 12 – Breegle, Jada – created for this review 19
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