NOVEMBER 5, 2015

Lotus Engineering and Sustainability is now a DBE, SBE, M/WBE, and EBE certified company. 

We are pleased to announced that Lotus has been approved for certification in four programs (Disadvantaged Business Enterprise, Small Business Enterprise, Minority/Women Business Enterprise, and Emerging Business Enterprise) through the City and County of Denver. 

SEPTEMBER 16, 2015

New projects, a new move, and a new business certification!

Greetings friends and colleagues,

We hope everyone has had a great summer and is enjoying the beginnings of fall. Here is some recent Lotus Engineering and Sustainability news:

We are happy to announce that we have signed a contract with the Colorado Energy Office to complete an evaluation that will provide greater insight into how well Colorado community solar garden subscribers are complying with the low-income carve-out rule outlined in House Bill 10-1432 and also help identify barriers, opportunities, and best practices for increasing low-income access to shared solar.

• Emily has officially moved to Crested Butte. Besides living in one of the most beautiful places in Colorado (the world?), Emily is now able to better serve our Western Slope clients.

• Look for our upcoming article in the next edition of the award-winning Natural Gas and Electricity Journal tentatively titled Community Solar Rewards and Risks.

• We are also currently working on our Women Owned Business certifications through the Small Business Administration and Denver's Office of Economic Development.

As part of our continuing sustainability blog series, we are happy to announce our new blog titled Finding Money. We hope that you find our blog valuable and will share it with your friends and colleagues.   

AUGUST 11, 2015

Lotus Engineering and Sustainability and Merrill Group are joining forces!

Dear Colleagues and Friends,

It has been a very busy summer for Lotus Engineering and Sustainability and Merrill Group. We have partnered on great projects for the City of Lakewood, CLEER, and the Colorado Energy Office on a range of topics including energy efficiency and renewable energy finance, energy performance contracting, solar gardens, and sustainability goal planning.  

Through these projects and through the many years we (Emily and Hillary) have worked together it became clear that it made sense for us to join forces in a more official capacity. As such, Merrill Group is merging with Lotus. Our complimentary skillsets allow us to bring additional expertise to our clients in a more streamlined fashion. Together we are able to help clients look at their environmental and social initiatives from various perspectives including public relations, financial, political, and engineering. In return, we are able to take complicated problems, analyze various solutions and strategies, and provide clients with defensible and effective next steps.

Best,

Emily Artale, Co-Owner and Principal Engineer at Lotus

Hillary Dobos, Co-Owner and Principal at Lotus

FEBRUARY 20, 2015

Welcome to 2015! The end of 2014 proved to be a very busy time for us and we have some exciting news to share! 

Lotus recently developed customized calculators to determine the greenhouse gas (GHG) emission reduction potentials which will support the City of Lakewood’s 2015 DRAFT Sustainability Plan. The reduction estimates will be used to help vet sustainability strategies and to help the City set GHG emission target values. Emily Artale flew to San Diego, CA to present The Risks and Rewards of Community Solar on a NREL panel for the 2015 Energy, Utility, and Environment Conference. This presentation provided recommendations to organizations that are considering developing their own community solar offerings. Emily will also be participating on NREL’s upcoming working group on community solar titled Marketing to Community Solar Participation: The State’s Role in Reducing in Risk. This working group will help inform state agencies and municipalities on how to market community solar to potential subscribers and prepare them for risk. 

Merrill Group provided due diligence and request for proposal support for several clients, as well as helped review several documents including a document for the Rocky Mountain Institute titled "The Path to a Deep Energy Retrofit using an Energy Savings Performance Contract”. 

Hillary Dobos also gave birth to her second son, Rodger, in December and has enjoyed her maternity leave.

As we enter this new year we hope to continue engaging with our clients by providing data and information that helps inform and simplify the decision-making process. And we would love to hear from you! Please feel free to contact us to discuss your energy and sustainability needs and visit our websites at http://www.merrillgroupllc.com/ and www.lotussustainability.com

Equality versus Equity – What does it all mean? (Part 2)

There are many connections between our climate, health, environment, economics, and social structure and we have seen throughout history examples of how the interconnections work. Globally and at a local level, we are facing an increased number of extreme weather events (e.g. flooding, extreme heat or cold temperatures, etc.) that result in economic loss, detrimental health and environmental effects, and reduced resiliency for communities. Furthermore, when considering the economic effects of climate change alone, it has been shown that on a global scale vulnerability to climate change is inversely tied to gross domestic product, as shown in the figure.[1] This means that it is often the groups and countries that are already less prosperous that will be most dramatically impacted by climate change.

Figure 1. Vulnerability to Climate Change and Gross Domestic Product

Within every community there are many activities that contribute to the changing climate through the release of greenhouse gas emissions and related environmental impacts; this includes activities in transportation, electricity use, wastewater treatment, solid waste, industrial processes, and agriculture. Often, the environmental impact of these activities may dis-proportionally affect certain members and groups within the entire community. Taking an equity lens can be useful in understanding how to mitigate environmental impacts in a way that brings benefits to the entire community and does not create undue harm to particularly vulnerable groups. 

A good example of how one can take an equity lens can be found with community electricity generation and use. The fossil fuels that have historically been used for electricity generation are extracted (typically) from less populated, poorer, and disadvantaged areas of the country. Processing and refining plants may also be located in or near these disadvantaged communities. The extraction, processing, and combustion of the fossil fuels causes air pollution, which then impacts the health of surrounding populations, and can also cause other adverse effects including spills, contamination, and accidents. The communities most impacted by the close proximity of these activities do not typically receive significant economic benefit from the extraction, processing, and use of these fossil fuels. A solution to reducing the impact on these front line communities, and toward reducing the environmental impact of electricity generation in general, is through transitioning to renewable energy for electricity generation. Doing so will result in increased economic resilience by creating more jobs, reduced poor air quality and related health impacts to the front line communities that are located near fossil fuel extraction and processing sites, and overall emission reductions from electricity.

However, even with the example provided above of a potential equitable solution to how electricity is generated, there are always challenges and there is no one size fits all solution. The specific needs of the community require careful consideration to identify the most equitable and sustainable strategies to address the challenges of today. Increasing the use of solar energy through a community solar garden may work well in one area, whereas in another it may not because of the cost to subscribers, the approval process, the requirements surrounding how many subscribers need to qualify as low-income, etc. The same situation applies to increasing public transit options. The goal may be to reduce use of single-occupancy vehicles (and the emissions associated with their use), but the community make-up may not be one in which people would use public transit if it were offered. Or, perhaps the transit options offered are ones in which emissions are high, now posing additional potential health complications.

Recognizing the specific needs of a community can occur by listening to the collective community voice through workshops, informational sessions, and dialogue with community members. Light may then be shed on the specific concerns of the entire community, such as whether the community is concerned about the increase in wildfires that destroy community structures and homes, or the flooding that removes bridges and washes out roads. Taking an equity lens to climate mitigation and resilience allows policy makers and program managers to consider the needs of the entire community and account for the well-being of its citizens and the well-being of the environment. Such consideration requires authentic attention, intention, engagement, and integration. Equity is not something to take lightly, as history shows those typically most affected by our changing climate include communities of color, elderly, youth, and disadvantaged communities. Planners, policymakers, businesses, consultants, etc. must address all aspects of equity as it applies to sustainability strategies and climate action. This is vital as our society strives to develop sustainable communities that are healthy places with a high quality of life for residents.

Many of our clients have taken equity into consideration in the past, and many are placing even more emphasis on equity now as they evaluate their initiatives, strategies, and plans moving forward. It’s exciting for Lotus to be a part of the movement forward toward a sustainable, vibrant, and healthy future – one that provides a high quality of life for this generation and generations to come.

[1] For more information, see: https://thinkprogress.org/how-fossil-fuels-make-inequality-worse-61acdb913aa6/

Equality versus Equity – What does it all mean?

Source: https://www.nwhu.on.ca/ourservices/Pages/Equity-vs-Equality.aspx

At the very basic level, the idea of equality is that everyone receives the same or equal. Equity, on the other hand, aims to make all things fair.  Take the image as an example. Here we see that “equality” means all the people have the same size of box to stand on, but that does not mean they can all reach the fruit in the tree. When there is “equity”, everyone has the size of box they need, so each has a fair chance to reach the fruit.

Equity is critical in all areas of sustainability, whether you are considering the three Es (environment, economic, and ethical) or the triple bottom line (people, profit, planet). Many facets of equity exist, for example, environmental justice and social justice are two components of equity and they are intertwined. Environmental justice must be addressed in land use plans, policies, and actions. No longer is placing a large power plant next to a low-income neighborhood easily tolerated. Social justice includes providing people fair treatment and unbiased share of social, environmental, and economic benefits.

Awareness of climate equity is not new. The concept of climate equity has been in the forefront for more than two decades on an international and national climate policy level.[1] The International Council for Local Environmental Initiatives (ICLEI), also known as Local Governments for Sustainability (an organization Lotus has a long-standing relationship with), has been addressing the issue of climate equity since the 1990s in terms of greenhouse gas emissions management.

The good news is that equity issues are addressed frequently by local governments as initiatives involving sustainability are developed and implemented. As an example, the City of Portland and Multnomah County have made climate equity a central focus of their Climate Action Plan and acknowledge that climate change impacts some people more than others (to read more, Climate Action Through Equity can be found here).

To take this concept a little further, we turn to the Urban Sustainability Directors Network (USDN), and their September 2014 report, “Equity in Sustainability, An Equity Scan of Local Government Sustainability Programs”. In the report, USDN expands upon the idea of equality versus equity in terms of sustainability and the idea that equity is a core component of sustainability. USDN sheds light on the fact that equity in sustainability needs to be incorporated into procedures, distribution of benefits and burdens, structural accountability, and generational impact.  (For more information, the report can be found here. )

Like many other well-respected organizations and experts on the matter, Lotus believes equity needs to be an integral part of all our work. We strive to weave this into our projects through stakeholder engagement, outreach, and education with the underlying firm belief that education and information leads to action. Policies, initiatives, strategy development, etc. should be approached with an authentic lens of equity if we are going to be successful at taking a stand to curb the impacts of climate change and trying to course-correct our trajectory. By doing this, it puts us on a path toward a sustainable future and to ensure equitable access to the benefits a sustainable future presents for all generations.

[1] World Resources Institute. 2019. “Climate Equity.” https://www.wri.org/our-work/project/climate-equity.

Momentum in Climate Action: Legislation and Utilities

During the recent Colorado legislative session, state senators and representatives took significant steps to support climate action initiatives through legislation. Below is a summary of a few very exciting recent bills in Colorado:

• Climate Action Plan to Reduce Pollution (HB19-1261) directly address reducing statewide greenhouse gas (GHG) emissions. It establishes a statewide goal to reduce emissions by at least 26% by 2025, 50% by 2030, and at least 90% by 2050 (all targets are based on a 2005 emission baseline).

• Collect Long-term Climate Change Data (SB19-096) requires the Colorado Department of Public Health and Environment (CDPHE) to collect data from GHG emitting entities, report on the data, includes a forecase of emissions, and propose a draft rule to address emissions by July 1, 2020.

• Community Solar Gardens Modernization Act (HB19-1003) increases the allowable size of a community solar garden from 2 to 5 megawatts. It also removes the requirement that subscribers must be location in the same county as, or adjacent to, the county where the community solar garden is located.

Other Colorado bills focused on requiring standards of water and energy efficiency for new appliances sold in the state (HB19-1231) and requiring that communities update their building energy codes to one of the most recent three International Energy Conservation Codes when updating their general building codes (HB19-1260). Governor Jared Polis has made electric vehicles a focus of his climate and energy policy, and the legislature responded by passing bills to support the electric vehicle market, including a bill that focuses on grants for electric vehicle charging stations (HB19-1198) and another bill that extends the tax credit for vehicle purchases (HB19-1159). The impact from these bills would be far-reaching and based on a February 2019 poll, just what Coloradans are looking for in terms of regulatory leadership. Based on the poll of 400 Coloradans done by the Global Strategy Group, 84% said they wanted federal and state action on climate change, and 79% supported a 100% renewable energy policy.

While HB19-1313 did not pass, and would have required carbon reductions in electricity production for large utilities in the state, there are forces outside of the state legislature that will likely also lead to emissions reductions. Xcel Energy, the largest electricity provider in the state, recently announced plans to implement its Colorado Energy Plan that includes more wind and solar energy and a path forward to reduce carbon emissions. Xcel’s goals for a carbon-free future include 80 percent less carbon by 2030 and 100 percent carbon-free by 2050. Other utilities across the country are taking similar action. Idaho Power already generates about 50 percent of its power from hydropower and now plans to generate all electricity from renewable sources by 2045. Northern Indiana Public Service Company (NIPSCO) plans to retire it’s coal plants over the next 10 years (roughly 65 to 70 percent of their generating capacity is from coal).

Other areas of the country are making progress too. According to the November 2017 report “America’s Pledge Phase 1 Report: States, Cities, and Businesses in the United States Are Stepping Up on Climate Action”, which can be found here, the transition to a lower carbon future can be attributed to many factors including cleaner energy and transportation options, solar power pricing reductions, and lower pricing for vehicle batteries. The list of areas where impacts can be made to reduce emissions is long and covers many areas of sustainability. States, cities, and businesses alike are making strides. The figure shown here (Figure ES-3 from the 2017 report) depicts the variety of sustainability measures and the number of states that have adopted them.

Are these measures enough to avoid the worst impacts of climate change? While recent legislative activity at the state level in Colorado and elsewhere in the county are moving us in the right direction, more movement is needed to ensure a safe and healthy future for the planet. The call to action is pressing….and for us here at Lotus, it’s exciting to see collaboration on global, nationwide, and local levels to address climate change.

An Overview of the IPCC Special Report on 1.5 Degrees of Warming (Part 2)

Following on Part 1 of our blog on the recent IPCC special report related to climate change, this blog (Part 2) focuses on the path forward and is written by Maggie Zeh, senior at Rock Canyon High School. Maggie worked with Lotus as part of her senior career exploration coursework. She is passionate about the environment and interested in pursuing a career in sustainability. Maggie plans to continue following these passions this fall at the University of Michigan, where she will major in Environmental Science. Lotus wishes Maggie all the best in her future endeavors!

Photo by Jeff King on Unsplash

Emission Pathways and System Transitions Consistent with 1.5ºC Global Warming

In order to limit climate change to 1.5 ºC, anthropogenic CO2 emissions would need to decrease by 45% of 2010 levels by 2030 and reach net zero by 2050. This is possible through renewable energy, feedstocks with sustainable diets, replacing GHG-intensive products with more natural ones, and carbon capture, utilization, and storage (CCUS). Improved air quality and nearly immediate health benefits can be experienced by reducing non-CO2 emissions, including methane. Limiting global warming requires rapid transitions in energy, land, urban environments, infrastructure, and industrial systems which have never been done on such a wide scale. Renewable energy would have to provide 70%-85% of electricity in 2050 in order to limit warming to 1.5 ºC. Energy from coal would have to be almost entirely eliminated, while only 8% of electricity could come from natural gas. Recent improvements in renewable energy and storage indicate that such a transition could be attainable. Land use would also have to change, including devoting less land to agriculture or transitioning to more regenerative land management practices. This can be attained by ecosystem restoration and less resource-intensive diets. These necessary transitions could be inhibited by economic, institutional, and socio-cultural barriers.

           Carbon dioxide removal (CDR) could help eventually achieve negative net emissions. This includes replanting forests, restoring land, carbon sequestration, and the capture and storage of carbon in the atmosphere. All of these result in a smaller amount of carbon dioxide in the air. Almost all pathways that limit global warming to 1.5 ºC utilize CDR to some extent. CDR would also be beneficial for improving biodiversity, soil quality, and food security.

Strengthening the Global Response in the Context of Sustainable Development and Social Justice

Limiting warming to 1.5 ºC can only be achieved if CO2 emissions start to decline very soon. At current rates, global warming of 3 ºC by 2100 can be expected. Sustainable development, the eradication of poverty, and the reduction of inequality will be easier and more attainable if warming is limited to 1.5 ºC. Sustainable development balances social well-being, economic prosperity, and environmental protection. Mitigation efforts will be more feasible with strengthened governance, improved technology, and lifestyle changes. Adaptation methods have the potential to help the environment but could also be damaging if not properly carried out. Adaptation is most effective when its methods keep in mind economic and sustainable development. Adaptation which reduces emissions will typically result in significant cost savings. Pathways that include low energy demand, reduced material consumption, and less GHG-intensive diets have the most benefits for sustainable development and the least tradeoffs. Mitigation can pose economic risks for regions associated with high dependency on fossil fuels for revenue. These challenges can be addressed by policies that promote diversification of the economy and the energy sector. To limit risks to sustainable development and poverty eradication, system transitions will need an increase of investments, policies, technology, and behavior changes. While confronting climate change, it is important to keep in mind social justice: create positive change without making certain groups of people worse off. Many pathways limiting climate change require international cooperation and the support of governments, civil society, the private sector, indigenous peoples, and local communities.

Conclusion

           There are many pathways which can be used to address the issue of climate change. Some changes are more necessary and will be more effective than others. Local governments around the world have very strong potential to address and mitigate the long-term impacts of climate change and are therefore uniquely positioned to take affective action in their policies and practices to address climate change. Technology is evolving and changing constantly, and this evolution and innovation will also play a key role in how climate change will be handled. New ways to carry out daily operations more sustainably will help make this as smooth of a transition as possible. It is entirely possible to limit climate change while also improving the quality of life for everyone, and this will be achieved most successfully if the entire global community participates.

IPCC, 2018: Summary for Policymakers. In:Global Warming of 1.5°C. An IPCC Special Report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty[Masson-Delmotte, V., P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, P.R. Shukla, A. Pirani, Moufouma-Okia, C. Péan, R. Pidcock, S. Connors, J.B.R. Matthews, Y. Chen, X. Zhou, M.I. Gomis, E. Lonnoy, Maycock, M. Tignor, and T. Waterfield (eds.)].World Meteorological Organization, Geneva, Switzerland, 32 pp.

An Overview of the IPCC Special Report on 1.5 Degrees of Warming (Part 1)

Today is Earth Day, which was established on April 22, 1970 when millions of people took to the streets to protest the negative impacts of 150 years of industrial development. Fast forward to 2019, Earth Day is now a global event filled with political action and civic participation.

Along the lines of recognizing the impacts from industrial development, and specifically impacts to our climate, our two-part blog series focuses on a special report released by the Intergovernmental Panel on Climate Change (IPCC). The blog series is written by Maggie Zeh, senior at Rock Canyon High School; Part 1 provides a summary and highlights of the report. Maggie worked with Lotus as part of her senior career exploration coursework. She is passionate about the environment and interested in pursuing a career in sustainability. Maggie plans to continue following these passions this fall as she starts studying at the University of Michigan, where she will major in Environmental Science.

An Overview of the IPCC Special Report on 1.5 Degrees of Warming

Photo by Diana Parkhouse on Unsplash

In October 2018, the Intergovernmental Panel on Climate Change (IPCC) released a special report outlining the impacts of climate change if temperatures raise 1.5 ºC above pre-industrial levels. This report also analyzes the difference between limiting climate change to 1.5 ºC as opposed to 2 ºC. The goal of this report is to explain how the response to climate change, sustainable development, and the eradication of poverty can be most effectively addressed and expanded. The data and projections in this report are based on scientific data in addition to socioeconomic influences.

 Understanding Global Warming of 1.5 ºC

               Human actions have already caused global temperatures to rise by about 1 ºC. This number will most likely rise to 1.5 ºC between 2030 and 2052 due to human impact if conditions remain the same. This means anthropogenic global warming (i.e., the climate change caused solely by human activity) is approximately 0.2 ºC per decade. This increase in temperature will be accompanied by heightened risks as climate change escalates. Changes in natural systems have already been observed and are expected to be more drastic as temperatures continue to rise. Mitigation actions can help reduce climate related risks in the future. In order to prevent further warming and reverse some damages, negative net anthropogenic CO2 emissions may be required. Negative net emissions can be achieved through projects including carbon capture, storage, and sequestration. These actions remove CO2 from the atmosphere, which results in reductions to total global CO2 levels. More challenges will be experienced at a warming of 2 ºC as opposed to 1.5 ºC. Various ecosystems have already started to experience negative effects of climate change, some of which are most likely irreversible. With increased mitigation and adaptation efforts, these risks can be reduced.

 Potential Impacts and Risks of Climate Change

                       Some of the most widely experienced impacts of climate change above 1.5 ºC include increases in average and extreme temperatures in many inhabited regions and altered precipitation levels. Most regions will experience a greater number of hot days, and this will become increasingly more extreme closer to the equator. Changes in precipitation will cause more droughts in some regions while it will produce more tropical cyclones and floods in others. Sea levels are expected to rise nearly a meter by 2100 at current rates. This can also cause irreversible loss of ice sheets in Antarctica and Greenland, which would consequently cause sea levels to rise multiple meters further after the year 2100. Small islands and costal areas with low elevations will have to adapt the most to this change in sea level. A great loss of biodiversity and various ecosystems can also be an expected result of climate change. Forest fires and the spread of invasive species is expected to increase along with climate change. Limiting global warming to 1.5 ºC as opposed to 2 ºC will likely reduce the increase in ocean temperatures and acidification and limit a decrease in ocean oxygen levels. The habitats of many marine animals will most likely shift further North or South, damaging many ecosystems. At 1.5 ºC, only 10%-30% of coral reefs are expected to persist. More adaptation measures will need to be taken if temperatures raise to 2 ºC and it will be easier to adapt at 1.5 ºC.

In addition to causing damage to the natural world, climate change can also pose risks to many socio-economic concerns. This can include food and water security, health issues, livelihood, human security, and economic growth. Climate change will pose the greatest risks to regions in the Arctic, dry land, and small islands as well as Least Developed Countries (countries with the least socioeconomic development). Poverty and disadvantage are also expected to rise as a result of climate change. Human health will likely experience negative consequences as well. If global temperatures raise to 2 ºC, more crop yields will be reduced by a greater amount than they would be at 1.5 ºC. Deaths related to heat and the ozone are expected to increase, as well as vector born diseases. There are limits to all regions’ abilities to adapt, and they are higher at 2 ºC.

Conclusion

The first half of this blog outlines the findings from the IPCC Special Assessment Report regarding what has caused climate change and the impact it will have on different aspects of the natural and human worlds. Human activity has played a key role in this issue and will most likely be one of the most effected factors. At current emissions rates, a variety of risks will be presented to the world, so mitigation and adaptation are both necessities. Factors like geographical region and socioeconomic development will determine the extent to which populations and natural systems will be impacted.

Multiple pathways have been created which outline different measures that can be taken to address the issue of climate change, and what their effect will be. Some of these pathways are in fact able to prevent climate change from reaching 2 ºC, which is ideal. Part two of this blog will highlight some of these opportunities which will reduce the risks experienced by humans and natural systems.

IPCC, 2018: Summary for Policymakers. In:Global Warming of 1.5°C. An IPCC Special Report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty[Masson-Delmotte, V., P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, P.R. Shukla, A. Pirani, Moufouma-Okia, C. Péan, R. Pidcock, S. Connors, J.B.R. Matthews, Y. Chen, X. Zhou, M.I. Gomis, E. Lonnoy, Maycock, M. Tignor, and T. Waterfield (eds.)].World Meteorological Organization, Geneva, Switzerland, 32 pp.

More than the 'iGen', Part 2

This blog post is written by Maggie Zeh, a senior at Rock Canyon High School that is working with Lotus as part of her senior career exploration coursework. Maggie is passionate about the environment and interested in pursuing a carrier in sustainability. This is Part 2 of a blog post Maggie wrote about youth action in climate change; to learn more about youth involvement in the climate action movement, please be sure to read Part 1 as well.

hSlava Bowman on Unsplash

Youth Engagement on an International Scale

The United Nations Framework Convention on Climate Change (UNFCCC) is dedicated to working with countries around the world to reach agreements to come together and reduce the damage of climate change. One fundamental component of this is youth engagement. Many of these conferences involve youth activities, including workshops to educate kids about climate change and inspire them to take action in their own communities. Youth briefings also give children and teens access to high level delegates to ask their own most pressing questions. One of the most exciting events is the Annual Global Youth Video Competition on Climate Change, where young people from around the world produce and enter their videos about different categories of climate change. In 2018, two individuals from Mexico and India were named the winners and had the honor to attend a conference in Poland to be recognized and show their videos to a broad audience.

Engaging Youth Through Social Media

One of the best ways to convey a message to younger generations is through social media. This has inspired many people to turn to applications such as Instagram, Twitter, and Snapchat to spread the word about climate change. Many teens follow their favorite celebrities on these platforms to stay up to date with their lives. A large number of celebrities use their fame for a good cause: to educate their fans about a cause they believe in. One prime example of this is Leonardo DiCaprio. In addition to being a very successful and well-known actor, DiCaprio happens to be a very dedicated environmentalist, who uses his platform to spread the message to his fan base. Instead of finding photos related to his latest movies and awards on his Instagram profile, it is filled with photos of the environment. These photos are accompanied by captions that describe current events relating to climate change and what can be done to mitigate it. Many young people use social media to receive quick news updates.

Personally, I follow the United Nation’s Environment Programme on Instagram to stay up-to-date in this field. This page, and those similar to it, instigates further research among people of all ages. Many young people also use their personal profiles to spread their thoughts about climate change on a smaller scale. The popular app Snapchat can also have a similar effect. Users can choose to subscribe to different news platforms’ “Stories”. Many of these are related to pop culture, but there are still others that are more informative about current matters. For example, National Geographic has a “Story” everyday, and some of the articles found in it are related to climate change. As teens scroll through the feed of these different platforms, they are bound to come in contact with articles and information relating to these issues.

Small Town Involvement

The city of Saint Louis Park, Minnesota, has set a very ambitious Climate Action Plan (CAP), with the ultimate goal of being carbon neutral by 2040. Youth involvement has played a key role in the development of this plan through the local high schools Roots and Shoots environmental club; these youth continue to be involved in the implementation of the climate action plan through outreach and education efforts in the community. Across the state of Minnesota many young people have come together under the campaign “MN Can’t Wait” and they have demands for all three branches of the government. They recently met with their new governor, Tim Walz, to express their demands. Walz agreed that he shared their sense of urgency, but has not yet taken executive action on the issue. The group also has goals to prevent any new climate infrastructure as well as to help a transition to a more sustainable economy. These kids are a great example of how age does not need to limit their aspirations and achievements.

Climate change is a rising issue that is gaining more and more attention from all generations. Young people particularly stand out in this field because we are the group of people who are set up to face the most dramatic effects yet. Many of us have been inspired for different reasons to take action and be a force of change in this modern issue.

Photo by Josh Barwick on Unsplash

More than the 'iGen', Part 1

This blog post is written by Maggie Zeh, a senior at Rock Canyon High School that is working with Lotus as part of her senior career exploration coursework. Maggie is passionate about the environment and interested in pursuing a career in sustainability.

 Today’s youth is the generation predicted to face the worst effects of climate change. While people working professionally in the fields of sustainability and climate action are driving many efforts on this impending issue, there are extensive examples of children and teens around the world taking matters into their own hands. Our impact can be seen on a local, national, and global scale. Our generation has lots of passion regarding climate change, and with the older, more experienced population as mentors, much can be achieved. It is imperative for all age groups to work together to address environmental concerns.

School Actions Inspire Students

 Action can be seen even on a local scale. Many high schools have some form of Eco Clubs, where students who are passionate about sustainability meet to help their schools reduce their environmental impact. These clubs can help their schools effectively recycle, obtain grant money for larger projects, and inspire other students to get involved. My own high school has made great progress towards being more sustainable. In the past few years, our biggest accomplishments include switching all lights in our gymnasium to LED bulbs and tinting all of the windows to reduce the need for heating and air conditioning. Currently, we are working on a project to compost in the cafeteria during lunchtime. These actions may seem small, but their impact is extremely positive.

Many teens are also inspired in their schools after learning about climate change in the classroom. AP Environmental Science is a very popular course among my peers, and it has inspired many students to act on climate change. This class was one of the major reasons why I personally became passionate about the environment and have begun to explore a career in sustainability. The other big component that inspired my passion was a safari trip to South Africa. This was a great learning experience for me on initiatives that must be taken and why environmental action is so important.

This is Zero Hour

 In today’s day and age, many young people are inspired by the momentum of other movements, such as the #NeverAgain campaign and the Women’s March, which seems to be drawing larger and larger crowds every year. One of the most outstanding groups of youth who have been inspired to take meaningful action is united under their coalition named Zero Hour. Their founders, who are all high school students, met at a summer program at Princeton University and instantly bonded over their dissatisfaction regarding lawmaker’s current initiatives to address climate change. They were determined to do something big that adults could not ignore. Since their beginning, they have been overwhelmed by the support they have received from people of all ages as well as various nonprofits group willing to sponsor their efforts. On the rainy day of July 21, 2018, hundreds of teens marched with Zero Hour on the National Mall to express their dedication to this cause. Their force was felt around the world as many sister marches also took place spanning from Denver to Kenya. They received lots of attention from the press, including the New York Times and even Teen Vogue. Zero Hour has made it clear that this was not a one-and-done production; they intend to continue speaking out until their platform has been satisfied.

Judicial Action

 Another driven group of young people have come together under the legal body Our Children’s Trust. These individuals are suing the federal government for allegedly violating their right to life, liberty, and prosperity. Their argument is that the government’s support for the fossil fuel industry is creating a future for younger generations that will put them in far worse situations than anyone has experienced before. Their ambitious demand includes a climate recovery plan that will bring the atmosphere down to 350 parts per million of carbon. Their belief is that young people currently have the most at stake because we will be the ones to witness any effects of climate change. This platform has inspired many young people from around the country to get involved and take a stand against climate change for the good of their own, and future, generations. The most recent court decision that has been made in this case is the Ninth Circuit Court of Appeals’ grant to the young plaintiffs’ motion to expedite briefing. This court case, Julianna v. United States, began in 2015. It has been a long journey with many obstacles, but in 2019 they are still making progress towards their goal.

Stay tuned for Part 2 of this blog and Maggie’s further thoughts on how to engage youth in climate action.

Emerging Trends in the Transportation Sector

The transportation sector accounted for roughly 28 percent of the United States’ total greenhouse gas (GHG) emissions in 2016 and the majority of these emissions (60 percent) come from light-duty vehicles, like the car you likely drive to work every day. Given the significant share of national emissions that result from our daily driving habits and personal transportation activities, many cities and regional governments are exploring how to reduce transportation emissions through infrastructure planning and policy development. Investing in electric vehicle (EV) infrastructure, increasing vehicle emissions standards, and using financial tools to encourage less fuel consumption will ensure cleaner vehicles and fewer emissions. Meanwhile, planners and engineers are beginning to consider what the fabric of our cities will look like as transportation modalities shift and reliance on a personal vehicle, in urban areas at least, will hopefully diminish. We are keeping an eye on several emerging trends that are likely to shape and define how communities work towards reducing their transportation-related emissions.

Electric Vehicle Policies and Incentives

The growth of the EV market over the past few years has been slowly but steadily increasing and is expected to continue to grow more rapidly and at exponential levels in the coming years; Morgan Stanley predicts that 80 percent of vehicles sold worldwide will be electric by 2050. Based on consumer feedback, the biggest deterrents to purchasing an EV (after increased sticker price over a traditional internal combustion engine) is limited range and access to charging stations. A less-cited concern is that most EVs on the market today are smaller cars, not the SUVs and pick-up trucks that many American consumers prefer to drive. Rivian Automotive hopes to change that by releasing the first-ever fully electric pick-up truck on the market by the end of 2020 (and Tesla plans on a pick-up prototype by mid-2019). Additionally, the public sector is investing in EV infrastructure that will hopefully mitigate consumer concerns about range anxiety and increase the speed of EV adoption. The State of Colorado’s EV Plan, released in January of this year, calls for building out the network of Level 3 charging stations (Level 3 stations are those that can provide a full charge in roughly 15 minutes) across the state and working cooperatively with other states in the Intermountain West Electric Corridor (which includes the states of Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming and focuses on the main interstates in the region) to ensure a consistent user experience at these stations.

To further support EV adoption, cities and local governments are developing policies and incentive programs that will green their own fleets and make transitioning to an EV an easy choice for the average consumer. In November, Boulder County became the first local government in the country to adopt a GoEV Resolution that supports community-wide vehicle electrification. The resolution includes commitments to electrify the County’s fleet, support broad development of charging and EV infrastructure throughout the County, work with partners to electrify taxi and ride hailing fleets, and work with the Regional Transportation District and the Boulder Valley and St. Vrain Valley School Districts to electrify their transit and school bus fleets. New York City, Sacramento County, and other communities are also working towards transitioning their transit and school bus fleets to electric, and New York City’s three largest airports are also electrifying their diesel fleet. These organizations were encouraged by both the air quality and emissions reduction benefits of the electric vehicles, as well as the significant economic benefits of the switch. While the electric buses cost more upfront, transit operators are paying roughly 19 cents per mile to operate the EV buses, while a traditional diesel bus costs roughly 82 cents per mile. With 480,000 yellow school buses and another 65,000 public transit buses on the road currently, the potential to drastically cut emissions from these vehicles by replacing them with all-electric alternatives is significant. Of course, these emissions reductions are contingent upon the electric vehicles being charged on an electricity grid that is primarily carbon-free, which many cities are also working towards.

Vehicle Standards and Emissions Cap Programs

Many state governments are adopting or considering policies that will reduce vehicle emissions. In November 2018, Colorado became the most recent state to adopt California’s Low-Emissions Vehicle standards, joining 12 other states and the District of Columbia; this brings the share of new automobile purchases impacted by these regulations to 40 percent of the market. Colorado’s new standards will go into effect for the 2022 model year. Vehicle emissions standards have traditionally been effective in improving air quality and ensuring that vehicles become cleaner over the years, but some states are interested in how to directly target transportation emissions reductions through policy.

Nine Northeast and Mid-Atlantic states and the District of Columbia have collaborated through the Transportation and Climate Initiative (TCI) to hold focus sessions and engage with hundreds of stakeholders throughout 2018, resulting in an announcement that the jurisdictions will design a regional low-carbon transportation policy proposal that would reduce transportation emissions through a cap-and-invest program and other pricing mechanisms. While many of the specific details of these programs are still in the works, the member states of TCI intend the program to be one in which the use of heavily polluting fossil fuels will incur a fee; the proceeds of the program would be provided to the member states to invest in low-carbon and more resilient transportation infrastructure systems. As the imposition of a fuel fee on producers and distributors would likely be passed onto the consumer at the pump, the TCI states will conduct further analysis and invite comments from stakeholders to ensure that the burden of this policy does not negatively impact low-income populations and creates opportunities for jobs and economic growth. TCI states may also consider the design and implementation of complimentary policies regarding land use and infrastructure planning to ensure the designed programs have the greatest positive benefit in terms of emissions reductions possible.

Autonomous Vehicles, Ride Sharing, and Modality Shifts

While there is quite a bit of debate about what the urban landscapes of our future will look like and how people will travel to and through them, there is general consensus that the rise of autonomous vehicles (AVs), ride sharing, and alternative mobility options (like e-bikes and e-scooters) will fundamentally change how we move through and interact with our built environments. Given the relatively rapid transition that our transportation infrastructure is likely to experience, many communities are not prepared for the impact of AVs and modality shifts on the fabric of their urban cores—in a review of the transportation plans of the 68 most populous cities in the U.S., only 6 percent of these communities have transportation plans that address self-driving cars, and the vast majority had planning horizons for 2030 and beyond.

Most projections show that fully automated vehicles will be available to the consumer market by 2025, with on-road testing already occurring in some cities; between this and the continued increase in adoption of ride-hailing (e.g. Lyft, Uber) and ride-sharing (e.g. UberPool and LyftLine) transportation services among urban residents, cities and developers are re-thinking the urban landscape. It is clear that the way that people get around is changing, and even models of traditional personal vehicle ownership are evolving through personal car rental services like Turo (think AirBnB for your car). In some cases, cities are relaxing the parking requirements for new urban developments and architects are designing buildings with parking structures that can be easily converted to office or retail space once the need for parking is diminished. This could mean that urban land previously dedicated to parking can be redeveloped more densely once that parking isn’t needed; alternatively, the more pleasant commute in a self-driving car (as opposed to one you have to drive yourself) may mean that people will be willing to travel further for work and other activities, further increasing urban sprawl.

In addition to changing patterns of vehicle use, cities and states are trying to understand how to regulate newer multi-modal transportation options like electric scooters and bikes. These modes are gaining popularity among young people and urban dwellers specifically, and the option to use multiple modes of transportation to reach a destination (e.g. scooter to a bus stop, ride the bus, pick up a ride share to the final destination) is beginning to outweigh the benefits of personal vehicle ownership for many people. While shifting from owning a personal vehicle to ride-hailing alone will not lead to a reduction in emissions, shifting the way that people get around and specifically increasing the use of ride-sharing transit services and multi-modal options will likely lead to not only reduced transportation emissions, but also reduced road congestion. In order to increase adoption of these modes, which generally may require more effort and time on the part of the individual, cities and regional governments can work to develop carrot and stick policies that encourage more people to reduce their time in a single occupancy vehicle and discover alternative transportation options.

As transportation activities represent a huge share of global GHG emissions and therefore contribute significantly to climate change, the potential to mitigate this impact through smart policy and planning practices at the local level cannot be understated. The team at Lotus loves to explore innovative and impactful transportation policies and projects that will reduce GHG emissions with our clients, and we remain committed to providing the most up-to-date and relevant insights on policies, projects, and programs that will have a net positive impact on community emissions. Using localized data and information unique to each community we can help to develop policies and programs, model the impact of these efforts, and support the implementation of effective emissions reduction activities.

Bringing Stakeholders to the Table

When developing a climate action plan, or when embarking on any community or organizational planning process, engaging stakeholders in a meaningful way ensures that the most relevant groups and individuals are aware and supportive of your process. When done correctly, stakeholder engagement processes may reveal new opportunities for implementing impactful strategies, programs, and projects.

Use the questions below to guide the development of your stakeholder engagement plan and determine the best tools and tactics for stakeholder engagement. Throughout the process of answering these questions, keep in mind what the end result of your project will be—Are you developing a public-facing document that will guide future community planning? Are you developing internal guidelines that will help define employee policy over the coming years? Do you need stakeholder accountability for successful implementation? Knowing where you are going helps to determine the most direct and productive path to get there.

1) Why are you engaging your stakeholders?

What is the goal of stakeholder engagement? If you are developing a public-facing plan, you may want to ensure that your stakeholder engagement includes opportunities for public comment or feedback on draft plans or provides transparency into the planning process. You may want to use the stakeholder engagement process to update your organization’s leadership team on planning progress and ensure that they are able to support the elements and strategies included in the plan. Additionally, you may want to learn from stakeholders that are experts in certain sectors in order to guide the development of strategies and goals within the plan itself. Ultimately, the stakeholder process should ensure that your plan and the goals, strategies, and actions within it remain relevant to your organization or community and can be supported by your employees, leadership, partners, and the general public.

2) Who do you need to engage?

Once you are clear on what exactly it is that you want to gain from your stakeholders, you can now determine who those stakeholders are and what they each bring to the table in support of the overall planning process. Often, making a list of the key stakeholders that come to mind can be helpful; from there, you can look to a few key questions to help ensure that the list includes all the relevant players. As you develop the list of individuals and organizations whose input and feedback are crucial, ask yourself:

• Who will be impacted by our plan?

• What are the interests, values, and priorities of those impacted?

• Are there people or organizations indirectly affected by the plan that should be involved?

• What organizations and individuals are crucial to making sure the work and strategies in the plan are actually implemented?

• What organizations and individuals could hinder success if they aren’t supportive?

These questions may help you identify the individuals and organizations that are most important to involve in the development and roll-out of your climate action plan. You may notice certain trends or groupings that are logical within this list of stakeholders, and you may decide it is necessary to engage these groups differently.  

3) How should you engage your stakeholders?

Once you have identified the stakeholders that are important to include in your planning process and understand the resources available for stakeholder engagement, you can determine the most effective and impactful ways to engage each stakeholder group. Be sure to share stakeholder expectations and allow plenty of opportunity for stakeholder contribution; this ensures that continued dialogue occurs and your stakeholders remain engaged through the entire process.

Working with stakeholders can generally take either an engagement, informative, or communicative format. Stakeholders that you wish to engage are those that are crucial to the process of developing your plan, either because they are in a position to ensure the plan is supported or they may be involved in the actual work of the plan. Stakeholders that you wish to inform are those that you seek to provide information to, but you may not necessarily need information from in order to develop your plan. Stakeholders with whom you wish to communicate are those with whom it is useful to have a two-way dialogue, but whose feedback is not necessarily crucial to the plan’s success.

For each stakeholder group the first step is to define the strategic objectives and understand the resources available for facilitating dialogue, then make a plan of action that achieves the objectives within any applicable resource constraints. For example, perhaps there is a group of local experts working in the transportation field that may be able to identify opportunities to implement changes to the regional transportation system—they should be engaged in the process in order to share opportunities to support the goals within their work.  It may be relevant to complete research on each of the stakeholders’ organizations to focus the discussion and manage any cultural or organizational dynamics that may come up. At the time of the meeting, stakeholders are provided with an overview of why they have been asked to share their input, and then given plenty of opportunity for discussion and dialogue. For larger groups, breaking up into smaller teams gives more people an opportunity to offer ideas and insight. Before ending the meeting, review all of the ideas presented and give the stakeholders a chance to vote on which ideas they think are best, which their organization can support, and which they are skeptical of. If stakeholder action will be crucial to the implementation of the plan, establish a system of accountability and action steps that need to occur.

At other times, an informative approach may be more appropriate—this may be the case when presenting the planning process to the public in order to provide transparency into the development of a climate action plan. In such a case, a public meeting, community event, or open house may be an appropriate forum. Alternatively, it may be necessary to communicate the plan to the public and gather feedback on which elements of the plan they are most interested in seeing accomplished first; in this case, a community survey will allow members of the public to share their thoughts.

A planning process that does not consider the values, goals, and current opportunities and challenges within a broader community or organization is unlikely to yield the same results as a plan that has incorporated the feedback and ideas from a wide and relevant network of stakeholders. Our clients that embark on an inclusive and well-thought out stakeholder engagement process note that the strategies and targets within their plan are more likely to be successful precisely because they are supported by the broader community, whom take responsibility for ensuring that the goals are met.  

If you would like to learn more about how to engage your stakeholders, please contact us.

100% Renewable Commitments, Part 2: Key Strategies for Success

In our last blog post, we discussed the growing trend towards communities committing to 100% renewable energy, and why this is becoming a common climate action strategy. In this post we will discuss the key strategies that will allow communities that have made this commitment to see success.

The Roadmap to 100%

The strategies and steps that communities and businesses can take to commit to 100% renewable energy will inevitably vary by the geographic area, policy and regulatory environment, and flexibility in approach. There are, however, a set of established steps that are recommended to consider when starting towards this ambitious goal:

• Don’t forget about efficiency

Alongside pursuing renewable energy, it is recommended to reduce actual energy consumption as much as possible. For local communities, this may look like energy audits and retrofits in publicly-owned facilities, as well as loan and grant programs that encourage private building and home owners to make upgrades and retrofits. The impact that building codes have on efficiency should not be overlooked—where possible, setting prescriptive building standards and/or “beyond code requirements” that require new buildings, or buildings with major upgrades, to be built to a certain level of efficiency will ensure that as the community grows, its energy consumption may grow at a slower rate. While at times the upfront cost to implement energy efficiency projects can be very high, having a lean and efficient building portfolio will require less renewable energy overall to offset the energy usage. Supporting energy efficiency measures also provides secondary benefits to both communities and individual building and home owners, such as lower energy costs in the long-term. It should be noted, however, that renewable energy projects tend to have a quicker impact on emissions and climate action strategies than energy efficiency programs, which tend to take longer to implement and result in significant change.

• Begin small generation projects, and grow these over time

Communities and companies that own many physical assets, such as buildings, landfills, and parks, may have the opportunity to make productive use of these assets via roof-top and ground-mounted solar, small-scale wind, and geothermal systems. These projects may generate enough energy to offset electricity consumption for publicly-owned facilities and municipal activities. Over time, as more energy uses are transitioned to electricity (see below), these assets can expand to allow for additional power generation. However, it should be noted that though this piecemeal approach may be more politically palatable and easier to implement, small-scale renewable energy projects are generally more expensive (over the long-term) to implement than larger, utility-scale renewable energy projects.

• Transition away from non-electric fuel uses

Once the grid begins to be powered by more renewable energy, its potential to impact emissions from traditionally non-electric sources in the stationary and mobile sectors grows. By electrifying energy-consumption sectors that traditionally are not powered by electricity, we allow for the possibility that these sectors can be powered by renewable energy. Many communities that are striving towards 100% renewable energy in all sectors are considering the importance of electrifying the heating of buildings, encouraging or mandating a switch to all-electric vehicles in city fleets and for the public, and of switching other equipment as necessary to electricity. As the mix of fuels, and therefore the emissions levels, that power grids across the country can vary widely, this strategy is most effective at reducing emissions and advancing a community’s climate action strategy when they have access to a greener grid that is powered by renewable and low-carbon resources.

• Communicate and collaborate

The importance of collaborating with the local utility and wholesale power providers, with local businesses and companies that have a renewable generation goal, and with non-profit organizations that are focused on bringing renewables to market, cannot be overlooked. By engaging a variety of stakeholders in the discussion, opportunities may be presented that previously were not feasible—perhaps a closed landfill can be an ideal site for a community solar array, or a partnership with a local university and renewable generation company can allow for technological research and development while providing power to a community.

Achieving 100% renewable energy is a noble and challenging goal, and the specific approach for each community will look different. If your community or business is interested in going 100% renewable for electricity or all energy sectors, please reach out to us, as we would be happy to help you develop a plan that is tailored to be effective for your unique community and goals

100% Renewable commitments are becoming a common climate action strategy

Across the country, communities and businesses are signaling their commitment to climate action and a cleaner future by pledging to becoming 100% renewable. While their motivations are diverse, and the methods to achieving 100% renewable energy vary widely, the number of pledges continue to grow, and the effect that this will have on long-term climate impacts and emissions inventories is significant. A few of Lotus’ clients have committed or are considering committing to 100% renewable energy and this has inspired us to share some of what we have learned.

We would like to offer the following information and points of consideration for those communities and organizations that are interested in taking on this impressive commitment. This blog will be posted in two parts, where the first will provide an overview of what a 100% renewable goal means. The second post will detail what a roadmap to 100% renewable energy could look like and how your community can succeed in going 100% renewable.

What does ‘100% Renewable’ mean?

Through the Sierra Club’s Ready for 100% program, the Climate Reality Project’s 100% Committed program, and the RE100 initiative for businesses, the commitment to going 100% renewable is growing. While both the Sierra Club and the Climate Reality Project pledges are for a commitment to pursue 100% renewable energy in general, many communities see a move towards 100% renewable electricity as the first step in this process. It is important to note that the terms “100% Renewable Energy” and “100% Renewable Electricity” describe two different outcomes; and therefore, two different sets of strategies to achieve those outcomes. While the terms are often used interchangeably, “100% Renewable Electricity” refers specifically to the transition of the electricity sector to provide energy only from renewable resources (e.g. solar, wind, hydropower, geothermal, and battery storage). Taking this concept one step further, “100% Renewable Energy” refers to sourcing energy from all sectors from renewable resources—this includes the electricity, stationary fuel (i.e. natural gas and diesel), and transportation sectors. Many communities that have pledged to becoming 100% renewable are focusing on the electricity sector first. The Sierra Club recommends setting a goal of obtaining 100% renewable Electricity by 2035, and 100% Renewable Energy for all sectors by 2050. Further, the organization recommends including a local generation target, and focusing on collaboration with other local communities and public-private partnerships to achieve the goal.

It is further important to note that the transition to 100% renewable electricity and 100% renewable energy will be an important strategy for communities and businesses that are striving to significantly reduce their greenhouse gas emissions. While these efforts will not completely reduce emissions, the vast majority of emissions in the U.S. are a result of electricity consumption, which can be offset with renewable energy. In addition, as the electric grid becomes cleaner, stationary heating fuels (e.g. natural gas and propane) and mobile fuels (e.g. gasoline and diesel) can be replaced with electricity, further reducing building sector and transportation emissions.

By transitioning these resources to renewable energy, communities and businesses can see significant gains towards their emissions reductions targets.

Local communities are leading the way

Over 160 U.S. mayors or town/city managers have signed the Sierra Club’s Mayors for 100% Clean Energy pledge, and many other counties have made an equivalent local commitment. The factors that have led communities to make this commitment vary from energy independence and local economic development to climate commitment and action.

In Greensburg, Kansas, transitioning to 100% renewable energy was a logical step to ensure long-term community resiliency after the town was nearly leveled by a tornado in 2007. By rebuilding the town with a focus on energy efficiency, small-scale solar, wind, and geothermal the community achieved 100% renewable electricity in 2013. In return, the town has effectively harvested the wind that nearly destroyed it to rebuild itself stronger for future generations.

Larger communities are also pursuing and achieving 100% renewable goals as well: Aspen, Colorado, achieved 100% renewable electricity in 2015. By utilizing wind power, energy efficiency measures, hydro-power, a small amount of landfill gas, and small scale solar thermal, Aspen has lead the way in the transition to fully renewable electricity. For Georgetown, Texas, in the heart of oil country, the decision to commit to 100% renewable electricity stemmed from a desire to obtain long-term low-cost and low-risk energy for city municipal customers. The City-owned utility established a Renewable Portfolio Standard (RPS) in 2008 of 30% by 2030 and in 2012 bumped that goal up to 100% when low-cost and low-risk solar and wind bids were presented that significantly beat out fossil fuel prices. In this drought-prone part of Texas, renewable energy has the added benefit that it does not require the large amounts of water for production that is typically required by traditional fossil fuels.

While some communities, like Ithaca, New York, are achieving their 100% renewable goals through the purchase of Renewable Energy Credits (RECs) on the open market, others are taking a more direct approach. San Diego and San Jose are both working towards Community Choice Aggregation, whereby communities may buy and/or generate electricity for their communities by working directly with wholesale power providers. Others, like Burlington, Vermont, are encouraging energy efficiency and smart building processes while also pursuing renewable energy projects and policies. The switch to 100% renewable can save communities money as well: Burlington, which sources its power from 30% biomass woodchip burning, 20% landfill methane, wind, and solar, and 50% hydropower, anticipates that it will save $20 million over the next 20 years over the cost of traditional fossil fuels.

Overview of the Global Covenant of mayors for climate and energy

Our previous blog on the Global Covenant of Mayors for Climate and Energy sparked great conversations regarding what the Covenant specifically entails and many of our municipal clients are curious to learn more. Building off these conversations, please read below to learn more about this commitment, what it will mean for your community, and the benefits of emissions tracking and climate action planning.

What is the Global Covenant of Mayors?

The Global Covenant of Mayors for Climate and Energy provides a framework for communities to track greenhouse gas emissions and set reduction targets, as well as develop a climate action plan to prepare for climate change mitigation and adaptation. It is the world’s largest collaboration of local municipal leaders (including cities, towns, and counties of all sizes) that are tackling climate change head-on by pledging to track and reduce greenhouse gas (GHG) emissions and prepare for the impacts of climate change through mitigation and adaptation. Participating jurisdictions have access to a global network of communities from which they can learn, network, and collaborate. Further, joining the Covenant will provide your community with access to a broad set of toolkits, including access to the ClearPath GHG calculation and reporting tool through 2018. After 2018 your community has the option of joining ICLEI-Local Governments for Sustainability to continue to have access to this reporting tool.

Emissions tracking and climate action planning will allow your community to fully understand the impact of your operations on the climate and prepare for and adapt to our changing climate. The Covenant can be a useful tool of any local leader invested in sustainability and interested in addressing the effects of climate change.

What are the requirements of my participation?

There are four simple steps to follow:

Step 1: Register Your Commitment

Your first step to becoming involved in the Covenant of Mayors is to submit a formal letter signed by the Mayor or chief elected official that illustrates your community’s desire to track and reduce emissions and develop a climate action plan. The Covenant website provides a very useful template and guidelines for drafting this letter.

The Global Covenant of Mayors also provides the Carbonn and CDP reporting platforms for communities to easily report and track their progress. Once you have submitted your letter of commitment to one of these platforms, you will receive your official “commitment” badge to share and demonstrate your climate action leadership.

Step 2: Take Your Inventory

Within one year of registering with the Covenant of Mayors, your community must complete and report a GHG inventory that is consistent and robust—this means following the GPC guidelines for community-scale GHG inventories. The Covenant provides both the ClearPath GHG Inventory Tool and the City Inventory Reporting and Information System (CIRIS) tools to make emission calculations simple, transparent, and consistent across the globe. In the first year of your participation, the inventory need only encompass emissions generated from stationary energy use and inbound travel and transportation. At this stage, you will also identify the climate hazards and risks faced by your community—this may include environmental hazards and economic impacts from climate change, among other risks.

This inventory, as well as the climate hazards that you identify for your community, must be reported in your chosen reporting platform.

Step 3: Set Your Targets

Within the second year of committing to the Global Covenant of Mayors, you will need to update your community’s GHG inventory to include all sources and sectors of emissions, including waste. With this updated and more robust inventory completed, you can now begin developing your GHG reduction targets.

The Covenant of Mayors provides a useful tool for setting targets in the City Action for Urban Sustainability (CURB) Tool. Using inputs from the ClearPath GHG Inventory Tool, this scenario planning tool allows you to project out your GHG emissions in the coming years and develop options for creating an effective climate action plan.

Step 4: Develop Your Action Plan

You have measured your emissions, analyzed your climate hazards and risks, and created targets towards which you will strive. Congratulations—your community is now ready to develop a climate action plan! In addition to addressing how your community will mitigate climate change through reducing emissions and improving sustainability, your plan should also address how your community will adapt to the changing climate and ensure long-term community resiliency. This guiding document can serve your community for years to come as you increase your sustainability and climate resiliency and improve the quality of life for your citizens.

While the four steps to become Covenant compliant can be completed within three years, many communities find upon joining the Covenant that they are already well on their way to receiving their badge of compliance due to efforts they already have undertaken. Once compliant, you commit to continuing to report your emissions and update your targets as your progress towards your climate action goals.

Communities that are concerned about the effects of climate change, want to reduce their greenhouse gas emissions, and desire to plan and prepare to adapt to our changing climate may find the Global Covenant of Mayors an incredibly valuable tool and network. If you are in Colorado, you will find an additional useful resource in the Compact of Colorado Communities, which complements the Covenant of Mayors to support our local communities in reducing emissions and improving sustainability measures. The Compact of Colorado Communities is an incredible resource through which participating communities can access information sharing, networking, resources, and capacity building with other local communities that are facing similar challenges.

The Covenant of Mayors offers a framework and tools for conducting emissions inventories, setting targets, and developing a climate action plan. Communities may also pursue climate action planning and emissions inventories outside of participating in the Covenant.

If you are interested in joining the Global Covenant of Mayors, conducting a GHG emissions inventory, or developing a climate action plan for your community, but are still unsure of where to start, please reach out to us. We have a depth of experience in GHG inventories, sustainability strategy development, and climate action planning, and would be pleased to assist you in this process.

I joined a community solar program, now what?

So you have signed a contract to receive power from a community solar program. Congratulations! This is a decision that comes with great benefits to both the environment and your wallet. Now it is time to take a closer look at your monthly electric bill to make sure that you are maximizing your benefits.

Fully understand your program and your bill

Your solar energy credit will show up differently depending on who your utility provider is and what type of project you have subscribed to.

In Colorado, there are three types of incentive models for community solar: a utility bill credit, a Renewable Energy Credit, and a one-time lump sum. In the utility bill credit model, your bill will show a credit correlated to the dollar value of your share of solar production. This model is the most typical and will be the focus of this blog.

There are also two models for payment with community solar: purchasing your panels outright or paying-as-you-go for energy produced. The pay-as-you-go model is similar to your monthly cell phone plan---you will never own the panels, you will pay for their energy like a service.

If you are partaking in a pay-as-you-go plan, in addition to your monthly electric bill, you should also receive a monthly bill from your solar developer. Generally, this bill should be for a lesser sum than your utility bill credit, leading to a net savings.  If you paid for your solar array up front, you will not receive a bill from the developer.  

Ask the right questions when looking at your bill

It is important that you thoroughly examine your energy bill after you sign up for community solar. You will want to make sure your panels are producing as expected, check that you are being compensated for production, keep an eye on utility rates, and confirm that you are making the most of all incentives (both financial and environmental) offered to you. Some specific questions you will want to ask:

1.       Do my bill credits look right?

Your electricity savings will be influenced by a variety of factors (e.g. solar panel production, electricity use, base rate, and utility rates) and your utility bill costs may not be offset 100% by your solar program. Bill credits will cover a portion of your utility rate. In other words, if solar energy offsets 100% of consumption, bill credits could offset costs by 50% to 80%. While in the short term your savings will vary, over time a majority of your costs could be offset. With this in mind, it is important to keep tabs on whether your panels are under- or over-producing.

2.       Are my panels under-producing?

If your bill credits look too low you should call your utility and solar developer (your utility can help with billing issues, but the solar developer is better for production questions). If the panels are indeed under-producing, you will need to problem solve together. Most are very happy to help!

Your first step will be to figure out why the array is under-producing. Weather, panel degradation, and broken parts are all possible explanations. Once you have identified the issue, ask your solar developer what they can do to fix it. They can’t do anything about the weather but ongoing monitoring, maintenance, and repair are their responsibility. They have a budget for this that is set aside from funds used to initially build the project and/or revenue from the array.

Comprehensive insurance is also typically covered by what you have paid for your panels to cover events like theft, hail damage, or low production due to weather. Further, some contracts specifically state that the developer guarantees that they will catch any abnormalities very quickly (typically within 24 to 48 hours) and ensure that arrays are performing as expected. 

3.       Am I over-producing? If I am over-producing, am I receiving roll over credits?

When you signed up for your solar program, you were likely given the option to purchase a maximum of 120% of your average energy consumption. Thus, it is possible that your panels will produce more energy than you use in a particular month. With community solar, when you don’t use that extra 20%, you are still generating bill credits.

Your contract may guarantee that excess production “rolls over” to cloudier months when you under produce. If your contract has this clause and it doesn’t look like your production has rolled over, call your utility provider or solar developer.

Any bill credits accumulated at the end of the contract period may also simply go away. It is best to appropriately size the system so that you are not left with an excess of bill credits after the contract period is over.

If you find that you are consistently over-producing due to efficiency or a move to a new home, it is sometimes possible to resize your subscription with your solar developer or apply your subscription to an alternate location.

4.       How are utility rates changing?

The pace at which your utility rate increases from year to year can be very important in determining your savings from community solar. For most people, a high increase in electricity prices is unfavorable. For a community solar participant, an increase in electricity prices may be favorable. This is because one of the major financial incentives of community solar is that bill credits follow the rate of increase or decrease of utility rates. The higher your electricity rate is, the more bill credits you will receive and, over time, more bill credits means more savings. If your electricity rate is low, you will pay less for your electricity consumption, but you will also realize fewer bill credits and less long-term cost savings.

If you want to take a big picture look at your projected savings over time, the Clean Energy Resource Teams provides a calculator that allows you to compare price scenarios.

5.       Are there tax incentives available to me?

Federal tax credits generally go to the company that developed your community solar project, however, it is worth checking with your solar developer to be sure.

6.       Are there other financial incentives available to me?

It is also worth talking to your solar developer to ensure that you’re making use of all available financial incentives in your state, the Database of State Incentives for Renewables & Efficiency or your local utility can help guide your conversation.

7.       What is happening to my Renewable Energy Credits?

You may have heard of Renewable Energy Credits (RECs). A REC is the legal representation of the environmental benefits of producing one Megawatt-hour of renewable energy. Typically the utility company will own the RECs (and therefore the environmental benefits) associated with community solar.

Community solar offers unique financial and environmental benefits and is simpler and more flexible than rooftop solar in many ways. Depending on the future of electricity prices and the length of the contract term, the long-term value of community solar can amount to thousands to hundreds of thousands of dollars. We hope this list of questions to ask while examining your energy bills under a community solar program helps you make the most of your solar program.

We are always available to help you wade through the world of community solar and RECs. Feel free to reach out anytime to our team at emily@lotussustainability.com, hillary@lotussustainabilitiy.com, or lauren@lotussustainbility.com 

AN OVERVIEW OF ENERGY OUTREACH COLORADO: A CONVERSATION WITH ANDY CALER

Environmental justice issues are a growing concern for our clients. Thankfully, Colorado has many organizations helping our low-income communities through research and education and direct action such as subsidies and assistance. We asked Andy Caler from Energy Outreach Colorado (EOC) to tell us more about EOC’s work and environmental justice in Colorado.

Nearly one in four families will have trouble paying their utility bills this winter. How are utility bills and energy costs part of environmental justice and the broader definition of sustainability?

When your income is low and the availability of well-maintained affordable housing is limited, the opportunities for energy efficiency upgrades are generally substantial. Unfortunately, it’s difficult to take advantage of these opportunities when your income must be prioritized to pay for food, medical expenses, rent and other basic necessities. When you combine a less than average housing stock with limited income, you start to see utility expenses become a much higher percentage of household income with limited abilities to reduce it.

In addition, all rate-payers, regardless of their income, pay for regulated energy efficiency programs through their monthly utility bill, but low-income energy consumers don’t necessarily have the ability to participate and benefit from these programs. EOC advocates for these consumers and works with the Public Utilities Commission and individual utilities to ensure programs are available specifically for this population. Many utilities (Xcel Energy, Black Hills Energy, Atmos Energy, Colorado Natural Gas, San Miguel Power Association and Holy Cross Energy) throughout the state are very proactive about working with EOC to create low-income specific programs to reduce the high energy burden of this population.   

Why is it important to support low-income communities even if you are not low-income?

Beyond having a human interest in helping out those in need, all community members benefit from families and seniors being able to safely stay in their homes and afford their home energy. If an individual isn’t able to pay their utility bill, the utility takes on that bad debt and passes it on to other rate-payers.  If individuals are forced from their home because of increased rents and utility costs placing them further from their job, there is a negative effect on air quality and traffic congestion because of longer commutes. Living in unsafe, unhealthy conditions increases the medical needs of individuals and places a heavier burden of the health care system.  The list goes on.

One in five Coloradans are considered low-income, how does Energy Outreach Colorado reach these communities?

We have a variety of approaches. Our non-profit was founded in 1989 on our Energy Assistance Program which helps limited-income households keep their heat on by paying a portion of their past due energy bills. Since then we’ve introduced energy efficiency programs to lower energy bills in order to help address the root cause. We currently have efficiency programs to help single-family and multifamily owners and non-profits that serve the low-income population. We also administer the Crisis Intervention Program that helps individuals repair or replace a nonworking home heating system. EOC’s Impact by Numbers in FY 2015-16:

• 8,599 Colorado households received EOC energy bill payment assistance

• 4,372 affordable housing apartments were weatherized by EOC to reduce energy costs and usage

• 36 nonprofit facilities were weatherized by EOC to lower energy costs and usage and better meet the needs of low-income communities

• 1,683 low-income homes received free furnace repair or replacement through the Crisis Prevention Program

How does EOC integrate and include low-income communities in energy policy decision making?

EOC is a recognized and credible representative of low-income energy consumers in local, state and national energy policy discussions and rate cases because of our extensive knowledge and in-depth experience. We actively collaborate with other organizations serving this population to ensure low-income consumers are considered in potential policy decisions and to monitor and assess the effects.

What feedback have you heard from people that have participated in Energy Outreach Colorado programs?

Our clients are extremely appreciative of the help and support they receive. Generally, these services come at a time of extreme need and duress and often protect them from potentially unsafe conditions. We help these families and seniors avoid having to make dangerous choices between paying for basic needs like heating their home or buying food for their next meal. When a family’s furnace goes out in the middle of January, EOC can come in and repair or replace it at no cost. When an individual has a past due balance on their home energy bill and is about to get shut off, EOC can pay their debt so they can remain warm and safe in their home. It’s a nice reminder that the work being done is really helping individuals and truly impacts people’s lives.

How can our readers find any additional information or support the work of Energy Outreach Colorado?

By visiting EOC’s website http://www.energyoutreach.org, calling us directly at 303-825-8750, and signing up for our newsletter or making a donation.

 THANK YOU SO MUCH ANDY!

Finding Regional Consistency in GHG Accounting: The GLobal Covenant of Mayors and the GPC

Many of our municipal and county clients ask us to help them identify a community greenhouse (GHG) accounting approach that aligns with their peers and avoids double counting. Although there are a lot of resources, finding the right one can be tricky. Recently, a team of world leaders and international sustainability organizations got together to tackle this very problem. Drawing on extensive expertise in sustainability for local governments, the team formed the Global Covenant of Mayors for Climate and Energy  (Covenant) agreement.

The Covenant is a global agreement between cities to combat climate change. It provides a systematic approach for mitigating and adapting to climate change and includes requirements for GHG accounting, GHG reporting, and the development of action plans that set ambitious, voluntary GHG emission reduction goals.

One of the major requirements of the Covenant is that all community GHG inventories follow the Global Protocol for Community-Scale Greenhouse Gas Emissions Inventories (GPC). The GPC prescribes a standardized and transparent approach to collect GHG activity data, prepare inventories, and report GHG data. In this way, GPC is designed to help cities draw consistent inventory boundaries, prevent emission double counting, and provide a holistic inventory of all relevant GHG emissions. This is particularly important for a group of local cities that seek regional consistency.

Once GHG inventories and action plans are complete, Covenant members report their data to either the Carbon Disclosure Project (CDP) or Carbonn. The data is publicly available and allows interested parties to search for a city’s commitments and targets.

Since its launch in September 2014, the Covenant of Mayors has gained momentum and now boasts the largest voluntary membership base of cities in the world while encouraging coordination with the larger global community. According to ICLEI’s Executive Director, Angie Fyfe, more than 150 cities nationwide have signed on to the Global Covenant of Mayors Agreement. This number continues to increase as more and more communities look for a consistent and methodical GHG management approach.  Covenant members are nationally and globally recognized for their efforts and are exalted as global climate leaders.

We believe that this work is so important because population growth is growing at unprecedented levels. According to the World Health Organization the “urban population in 2014 accounted for 54% of the total global population, up from 34% in 1960, and continues to grow.”  Some estimates guess that 80% of the world population will live in cities by 2050. That is over 1 billion new people living in urbanized areas by 2050.  (See our blog: The Power of Municipalities for more information).

Cities have the ability, responsibility, and often the encouragement from the public, to take the lead and address climate change.

If you are considering making a locally and globally recognized commitment to GHG reduction and climate change, we encourage you to consider joining The Global Covenant of Mayors for Climate and Energy agreement. 

An Overview of Colorado C-PACE: A Conversation with Paul Scharfenberger

Last week, Lotus was fortunate to speak with Paul Scharfenberger, the Director of Finance and Operations at the Colorado Energy Office, about the new financing tool being rolled out called Colorado’s Commercial Property Assessed Clean Energy (“Colorado C-PACE”).  C-PACE financing is an innovative, yet proven, financing mechanism for commercial, agricultural, institutional, industrial, non-profit and multifamily (residential units with 4 or less units are excluded) properties to obtain low-cost, long-term financing (up to 20 years) for renewable energy, energy efficiency and water conservation upgrades.

Since many of our clients are interested in C-PACE, we were thrilled to ask him a few questions:

Recent conversations with private sector entities has highlighted that the interest in commercial PACE is growing and many believe it is a “game changer” for Colorado’s commercial and multifamily property owners. How is C-PACE different than other financing mechanisms for energy efficiency, renewable energy, and water conservation?

C-PACE is different from other financing mechanisms used to support energy and water improvements in the commercial and industrial sector in a variety of ways, but one of the most important distinguishing characteristics associated with C-PACE is the long term nature of the financing. C-PACE can be used to provide financing up to 20 years for these improvements, whereas standard commercial loans – the next likely alternative that a commercial property owner would pursue -  typically only extend to 5, 7, or 10 years depending on the loan recipient, the project being financed, and the lender providing the financing. By offering 20 year financing terms, C-PACE more closely aligns with the payback periods often associated with energy and water improvements and, in doing so, dramatically improves the cash-flows associated with these projects.

Beyond the long-term nature of C-PACE financing, the fact that it can be used to finance 100% of the project costs is unique to C-PACE. It can be used to finance the soft-costs associated with a project (e.g. any associated energy audit, feasibility study, etc.) as well as the hard costs (e.g. equipment and construction), whereas other financing mechanisms typically can be only used to finance the hard costs associated with a project. What this means is that a commercial property owner participating in C-PACE doesn’t have to bear any out of pocket costs for these improvement projects. This is particularly attractive for small to mid-size (Class B & C) building owners who often lack the capital budget for capital-intensive equipment upgrades, yet have pent-up demand to modernize their building. Moreover, the importance of this aspect of the program cannot be understated, especially in terms of how this provision of the program impacts our contractor communities’ ability to leverage this program to convert prospective projects to sales.

Finally, C-PACE is founded on the premise that it allows the financing obligation to transfer to the new owner of the property in the event of a sale of the property. With other financing mechanisms, the commercial property owner would have to be assured that he/she would remain in the property long enough to enjoy the financial payback associated with it. For deep energy/water retrofits, that payback period can be in excess of 10 years and, although it might be counterintuitive, commercial property owners do change locations quite frequently. By allowing the financial obligation to be tied to the property as opposed to the property owner, PACE ensures that the project costs and savings are always connected and, in doing so, addresses one of the primary barriers that commercial property owners face when considering whether to pursue an energy/water improvement project.

Approximately 19% of Colorado’s energy is consumed by commercial buildings, yet implementing energy efficiency and renewable energy upgrades in commercial buildings can be a (sometimes insurmountable) challenge. Which major roadblocks for energy efficiency, water conservation, and renewable energy upgrades does C-PACE address?

As I alluded to in my last response, the lending terms (typically 5-7 years) associated with other financing mechanisms and programs often don’t align well with the economics associated with energy and water improvements. These projects can have lengthy payback periods and it is imperative to structure the financing terms associated with these projects accordingly in order to make financing an attractive option to property owners considering these improvements – otherwise, commercial property owners likely won’t pursue these improvements due to their other competing budgetary demands. C-PACE addresses this issue head-on by enabling long-term financing (up to 20 years) that is more commensurate with the payback of these projects. As a result, C-PACE provides an attractive (“too good to be true”) financing option to commercial property owners that is difficult to overlook.

The transferability of the C-PACE financial obligation at the point of sale also addresses a major barrier that commercial property owners face when considering these improvements. If a property owner isn’t 100%  positive that they’ll remain in the same location long enough to enjoy the financial payback associated with an energy/water improvement, then it makes financial sense for them to err on the side of caution and not pursue the project. This is a huge issue in the commercial property sector - this barrier keeps many property owners who are interested in improving the energy/water performance of their buildings and enjoying the related utility costs savings from ever pursuing these improvements. Again, C-PACE addresses this issue head-on. A commercial property owner can pursue an energy/water improvement and if he/she decides to move and change locations a few years down the road, the financial obligation associated with the PACE improvement will remain with the property and fall to the next owner of that property, as will all of the utility cost savings that that project produces on an annual basis. 

Lastly, triple net leases are extremely prevalent in Colorado’s commercial sector. With a triple net lease, a building owner can pass increases to their property taxes (i.e. in the form of the PACE special assessment that is included on the property owner’s annual property tax bill) through to their tenants who often pay the utility bills. With other financial mechanisms, property owners are often deterred from paying for these building improvements because they will bear the cost, but their tenants will enjoy the benefit of the reduced utility costs – a barrier often referred to as the “split incentive”.  Obviously, most property owners will not choose to pursue such an arrangement, but because the PACE obligation is tied to the property taxes and can be passed through to the tenants with a triple net lease, property owners can finally pursue these projects and pass the costs and savings to their tenants, thereby addressing the “split incentive” barrier.

Now that we understand the many benefits, can you outline how C-PACE works?

Absolutely. Colorado’s C-PACE program operates within a statewide, voluntary special assessment district, called the New Energy Improvement District (NEID), that each county has the option to opt into through a resolution by the Board of County Commissioners. Once a county opts into the program, commercial business owners in that county can apply to the NEID to receive financing from private lenders for eligible energy and water improvements. The project applications, eligibility information, lists of eligible contractors and lenders, and other important program information can be found on www.copace.com. In applying to the program for financing, a property owner can either come to the table with an eligible contractor and/or lender in hand or it can apply without establishing those partnerships and the program administrator (Sustainable Real Estate Solutions, Inc – SRS) will help to connect those property owners with the eligible contractors and/or lenders who have already been approved to participate in Colorado C-PACE.

SRS will then review the project application to ensure that it meets the requirements and standards of the Colorado C-PACE program. If it does, then SRS and the NEID will begin working with the applicant to obtain mortgage holder consent which is required to move forward with the PACE special assessment. If consent is provided, then a special assessment/lien will be recorded within the county land records and the project will move forward to completion.

The NEID then provides each participating county a certified assessment roll that will include the PACE assessment amounts to be placed on the property tax bills for each property that has received PACE financing. This will be a separate line item on the property owner’s property tax bill that will be identified as the, “New Energy Improvement District Special Assessment”. The property owner will then pay their property taxes and the PACE assessment to the county treasurer - exactly as they would for their property taxes – and then the county treasurer will remit the PACE special assessments to the NEID who, in turn, will remit those payments back to the private lenders who provided the original PACE financing.

This continues until the entire PACE special assessment amount is repaid, at which time the special assessment/lien will be satisfied and removed from the property. I realize that it sounds complicated, but it is a proven model that is being used across the country and, as we discussed earlier, it offers several advantages as compared to other finance mechanisms.  

One of the benefits that many individuals and companies highlight regarding C-PACE is that it addresses the split incentives dilemma. Can you provide some background on how it does this?

Yes, happy to. As discussed earlier, the “split incentive” refers to the dilemma that a property owner faces when considering to pursue an energy/water improvement to a property that contains tenants who are responsible for paying their respective portions of the utility bill. The issue is that the property owner pays for the improvements, but it is the tenants that receive the benefits associated with those improvements that come in the form of reduced utility costs. This dilemma often results in a property owner not pursuing these improvements because it doesn’t make financial sense for them to do so.

This is where PACE comes into play. As mentioned, PACE operates under the guise of a special assessment that is repaid through the property taxes. Also as mentioned, triple net lease between building owners and tenants allow building owners to pass increases to their property taxes through to their tenants. What does this all mean? It means that PACE addresses the split incentive dilemma under certain lease arrangements which are common in Colorado by allowing the property owner to pursue and pay for these building improvements and then pass on the repayment obligation to their tenants who enjoy the benefits associated with the program.

Before closing, the benefit to the tenant under this situation should not be overlooked. In the majority of cases, the savings associated with these improvements will exceed the costs associated with them – the mortgage holder consent aspect of Colorado C-PACE all but guarantees this – meaning the tenants will benefit from utility costs savings that will exceed the costs that are being passed through to them. 

Are there any energy efficiency, renewable energy, and water conservation upgrades that are not allowed under the Colorado program?

The statute dictates eligibility based on utility savings and increased generation from renewables. This means that the eligibility requirements are broad and encompass a wide variety of different energy and water measures. That said, Colorado C-PACE relies on private sector lenders to provide the financing for these building improvements and the participating lender will have to be comfortable with, and ultimately sign off on, the measures being financed. In other words, a vast majority of measures that are proven and have demonstrated reliable utility cost savings will absolutely be supported by C-PACE financing, but nascent and emerging technologies may have a harder time obtaining financing because lenders may be weary of the payback expectations associated with them.

Colorado’s program is unique because Counties have to voluntarily opt-in to a New Energy Improvement District in order to participate.  Which Counties have opted in to date?

Well, it should be noted that they don’t “have to” opt-in to the NEID, but we sure do hope that they choose to – I not only feel that C-PACE will produce significant benefits to Colorado’s commercial property owners, but also the counties within which those properties reside.

To-date, Boulder County is the only county that has officially opted into the program, but I have met personally with 15 other counties in the State and am extremely confident that we will see the number of participating counties increase in the very near future.

If any of our readers live in a County that has not opted in to C-PACE but they are interested what are the next steps?

Well, for one, we’d like to hear from those folks. We are compiling a list of projects in counties that haven’t opted into the program because that is compelling information for us as we engage with counties – being able to show very real demand and economic development opportunities is obviously a powerful communication tool.

Beyond engaging with the NEID, it’s important for county representatives to learn of Colorado C-PACE from a variety of individuals and organizations. Although PACE is a model that has been pursued and proven across the country, it is a relatively new program to Colorado and it will take time and effort from a variety of stakeholders to inform decision makers as to the benefits that it can produce to the counties of Colorado.

If any of our readers have additional questions, how can they find more information?

www.copace.com is a great resource for program information, testimonials, application documents, etc., but your readers should always feel free to reach out to SRS (contact information is contained within the aforementioned website) and/or directly to me if they ever have questions about the program – we’re always more than happy to field inquiries and hopefully help your readers understand and navigate this very exciting program.

Thank you so much, Paul! More information about CoPACE can be found at the Colorado C-PACE website at www.copace.com.

Note: Photo by Matthew Wiebe.