Translate[Archived] Question #55: What would the budget impact be if the City were to increase its purchase of Renewable Energy Credits (RECs) to offset the equivalent of 100% of the greenhouse gas (GHG) emissions?
Question:
What would the budget impact be if the City were to increase its purchase of Renewable Energy Credits (RECs) such that they offset the equivalent of 100% of the greenhouse gas (GHG) emissions associated with the City’s own electricity consumption on an annual basis? Have staff completed energy efficiency projects in FY18 that will generate energy savings in FY19 that will offset part or all of this cost? Does staff have projects planned for implementation in FY19 that will offset part or all of this cost?
Response:
What would the budget impact be if the City were to increase its purchase of Renewable Energy Credits (RECs) such that they offset the equivalent of 100% of the greenhouse gas (GHG) emissions associated with the City’s own electricity consumption on an annual basis?
The City currently offsets approximately 19% of its annual electricity use with green power through the purchase of renewable energy credits (RECs) and solar photovoltaic electricity generation. The purchase of these RECs costs about $16,000 per year and offsets annual electricity use with green power for City facilities achieving green building certification, including Charles Houston Recreation Center, DASH headquarters, Fire Station 209, and the Alexandria Police Department. Moreover, RECs also offset City Hall’s annual electricity use with green power. The City purchases RECs from Dominion Energy as made available by contract through the Virginia Energy Purchasing Government Association (VEPGA). The RECs are Green-e® certified[1] and reflect a national mix of approximately 66.5% wind, 28% biomass, and 5.5% solar electricity generation resources.
The City currently operates on-site solar photovoltaic systems at Beatley Central Library and Witter Field. At Beatley Central Library, a 42 kW solar photovoltaic system generates approximately 3% of electricity used by the facility.[2] At Witter Field, a 10 kW solar photovoltaic system generates approximately 6% of electricity used by the field’s operations.
The offset of approximately 19% of annual electricity use with green power supports the vision and guiding principles of the City’s Eco-City Charter; and supports the actions and meeting targets outlined by the City’s Environmental Action Plan 2030 and Energy and Climate Change Action Plan. Moreover, City facilities offsetting electricity use with green energy to attain green building certification accomplish the City’s Green Building Policy requirements.
All else equal, we estimate the total cost to offset the equivalent of 100% of the greenhouse gas (GHG) emission associated with the City’s own electricity consumption in FY2019 to be about $97,000. Future year costs to accomplish the same outcome may vary from this amount as electricity use is highly dependent on year-over-year weather conditions; impacts from changes in operations and capital improvement projects affecting the City’s portfolio of facilities, parks, and operations; and changes in the City’s use of electronic devices and other electricity-using systems.
Have staff completed energy efficiency projects in FY18 that will generate energy savings in FY19 that will offset part or all of this cost?
Staff implement energy efficiency solutions as part of many Capital Improvement Program projects as well as completing energy efficiency projects as part of the Energy Management CIP. Those Energy Management CIP energy efficiency projects completed in FY2018 are expected to deliver approximately $81,500 in operating budget cost savings, which effectively persist over the course of the project’s lifespan. Many of these projects reflect investments in high-efficiency lighting emitting diode (LED) lighting systems in City facilities, including recreation center gymnasiums, 2900 Business Center Drive, and the Animal Shelter. Similar Energy Management CIP energy efficiency projects completed in FY2017 also contribute operating budget cost savings, including implementation of LED lighting at City parking garages and other facilities which total approximately $45,000 per year.
Does staff have projects planned for implementation in FY19 that will offset part or all of this cost?
Staff
are conducting planning, design and engineering for several energy efficiency
projects for implementation in FY2019, including retrofit of LED lighting
systems at the DASH Administrative facility, the City Courthouse, Fleet
Services facility, and exterior lighting at the Public Safety Center. Current
estimates for these projects anticipate avoiding approximately $70,000-$80,000
in operating budget costs. These savings will accrue in part in FY2019, and will
be fully realized in future fiscal years. Cost savings estimates were factored
into utility estimates for the FY2019 Proposed Budget.
[2] http://peer1.datareadings.com/client/moduleSystem/Kiosk/site/bin/kiosk.cfm?k=9j4LjK4J