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HomeMy WebLinkAbout2629 Amends Comp Plan-Chap XI ORDINANCE NO. 2629 ORDINANCE OF THE CITY OF ASHLAND ~MENDING THE ASHLAND COMPREHENSVV~ PLAN - C~R XI - ~ENERGY~ THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Chapter XI of the Ashland Comprehensive Plan, "Energy", shall be replaced in its entirety by the revised chapter "Energy, Air and Water Conservation" and attached as "Exhibit A." The foregoing ordinance was first read on the ~. ~' day of and duly PASSED AND ADOPTED this 02 ! 57 day of 1991. City Recorder SIGNED .a~ND APPROVED this day of , 1991. Catherine M. Golden Mayor CHAPTER XI Energy, Air and Water Conservation INTRODUCTION Things have changed since the 1982 Comprehensive Plan was developed. The dty's supplier of electricity is now the Bonnev- ille Power Administration, the Northwest Power Planning and Conservation Act was passed, and many requirements of the Act have been implemented at both the regional and local level. The electric energy surplus of the 1980's is dwindling faster than many people anticipated only a few years ago. Energy is still fundamental to the quality of life we all enjoy in Ashland and America. National concerns about global warming, acid rain and dependence on unstable international oil supply provide a national framework for city energy activities. At the community level, energy and water usage is related to many planning facets, most notably transportation, land use and site design, new construction, air quality, housing and economic development. In reviewing the 1982 energy element, it is remarkable that the majority of the goals, policies and objectives have been largely satisfied. However, much remains to be done. All the reasons to use our resources wisely are still relevant -- possibly ben more important today in 1991. Changes in the electric~fitility industry require wise energy usage not only from a customer service point of view, but also to remain competitive in the 90's. Meanwhile, the job of fostering wise resource usage is becom- ing more difficult because so much has already been done. It will be difficult to continue this momentum because the earlier, easier savings have already been acquired. We will need innovative ideas and programs to get these harder to reach resource opportunities. Our regional successes prove that not only can conservation be acquired, but also that it is the most 'cost effective' way to meet the northwest's future energy needs. Ashland is regionally recognized as a leader in instituting and providing energy conservation. We need to continue this leadership, but to also enhance our position by developing ways to conserve water and air quality. This is the first step in moving our community on to the next level of achievement. While it is only the first step, it is probably the most important, as it sets the tone and direction for City policy. Therefore, it is very impor- tant that the aims presented here be sufficiently challenging to motivate that public commitment which will be necessary to achieve success. Our aspirations are high, for the goal to be obtained is of critical importance. HISTORICAL PERSPECTIVE The City of Ashland is the second oldest municipal utility in Oregon. We have been providing wholesale electric energy since 1909. In February 1982, the City began purchasing wholesale electricity from the Bonneville Power Administra- tion as a full requirements preference customer. Prior to this time, we purchased power from Pacific Power and Light. The City's power sales contract with BPA, currently in effect, will expire in 2001. The Bonneville Power Administration (BPA) provides whole- sale power to the City as a preference customer. BPA is a Federal marketing agency of the U.S. Department of Energy. It is responsible for marketing the hydroelectric energy produced by the federally owned dams on the Columbia River System. Bonneville Power Administration supplies electrical power to preference citizens (municipal utilities, rural electric co-ops and public utility districts), direct service industries (DSI's) which are mostly aluminum smelters, and investor owned utili- ties. Surplus or non-firm energy and capacity are also sold both outside (mainly California) and inside the region. BPA's firm utility customers are located in Washington, Oregon, Idaho and Western Montana. BPA's resource mix in 1987 consisted of 90% hydroelectric generation and 10% thermal resources. PACiFiC NORTHWEST ELECTRIC POWER PLANNING AND CONSERVATION Act oF 1980 In December 1980, President Jimmy Carter signed the Pacific Northwest Electric Power Planning and Conservation Act (NW Power Act). Thisverysignificant piece oflegislationintroduced many changes in the way that electric power issues would be dealt with in the Northwest. While the Act is very complex, a number of the more significant changes were: Created the Northwest Power Planning Council. This Council, made up of two gubernatorially appointed representatives from each of the four states of Washington, Oregon, Idaho and Montana, was mandated to determine the northwest's electric needs and to develop a plan for the most cost effective resources to meet these needs. ~.. Gave BPA a much more active role in acquiring new resources to meet the future needs of the Pacific Northwest. Prior to the Act, BPA could only market the output of the federal dams on the Columbia. Now it can actually acquire all the needed resources for its Northwest citizens. Set up a list of priorities for the Council t6 use in determining which new resources BPA would acquire. This list of priorities, in order, was: 1) conservation, 2) renewable resources, 3) co-generation and 4) thermal resources. In addition, the Act gave a 10% cost advantage to conservation over any other resource type. This meant that any conservation resource could cost 10% more than a competing resource and still be selected over the other resource. Mandated that the Northwest Power Planning Council adopt a 20-year load forecast and a 20 year resource plan to meet the energy requirements of the forecast by 1983. On April 27, 1983, the Northwest Power Planning Council adopted the 1983 Northwest Conservation and Electric Power Plan. True to the requirements of the Act, the plan did include a 20-year load forecast predicting the future electridty needs of the Northwest. However, the Council decided that accurately forecasting the actual energy needs of the region over a 20 year time span was next to impossible. Therefore, the load forecast in the 1983 Plan contained a range of forecasts instead of one single guess. The idea was to plan for different growth scenarios and then develop a plan which could respond to any of them with the most cost effective resources. The Council's Plan followed the resource priority of the ACt by relying mainly on conservation for each of the growth scenarios. Another key element of the plan are the Model Conservation Standards. These are construction standards for new residen- tial and commercial buildings. The ACt directed the Council to develop these standards which "must secure all the power savings that are cost effective to the region. In addition, they must be economically feasible for consumers." The 1983 Plan called for these standards to be implemented by the region's utilities, local governments and code agencies by January 1, 1986. And it also required BPA to develop a surcharge policy to be levied on utilities not implementing these standards by the deadline. In January, 1986, the 1986 edition of the power plan was adopted. Like the 1983 plan, this plan emphasized conserva- tion and called for no immediate development of new resources except for lost opportunity resources. Lost opportunity re- sources are resources which, if not acquired, will be lost forever to the region. One example occurs when a new home is built. If that home is not constructed to maximum conservation levels, it will be impossible to ever acquire that conservation. You may be able to retrofit the home with some of the conservation measures, but it will be much more costly and will never be as effective as correctly building the home initially. This plan reemphasized the need to get the Model Conservation Stan- dards in place because they represent the most significant opportunity to protect aresource that could otherwise be lost to the region forever. These new buildings are likely to last for a considerable time and all cost-effective conservation measures should be captured at the time of initial construction. The Council is presently in the process of reviewing ancl;~tevel- oping an updated version of the Northwest Power Plan. Also, it is considering strengthening the requirement of the commer- cial Model Conservation Standards. The updates will provide additional direction to BPA and the region's utilities. STATE ENERGY PLaN The Oregon Department of Energy is directed by State law to prepare an energy plan for the State every two years. The 1989 State Energy Plan is the third biennial plan. It guides policies and programs to ensure Oregon's energy needs will be met in accord with State goals. This plan states: Oregon should build and maintain the capability to meet energy demand at the lowest cost. This means the state should: 1) Commit to and develop resources as close as possible to the date that power will be needed. 2) Secure all cost-effective conservation in new structures; capture renewable resources that would be lost if not developed nOW. 3) Pursue pilot and research conservation programs so conservation can be acquired when needed; pursue renewable resource research, development and demonstration. 4) Ensure that financial incentives to utilities promote least-cost resources. 5) Promote market competition that lowers costs and improves services. Oregon supply policies and actions should guard against rapid price increases and supply shortages. Should they occur, state government should be prepared to lessen their impacts. Oregon should promote wise use of energy resources in accord with our social, environmental and economic goals. Oregon's energy supply choices should weigh all benefits and costs, including costs to the environment and the public. Activities of the City of Ashland should be considered in light of regional and State energy policies and reinforce and implement them whenever feasible. REGIONAL ENERGY SYSTEM The Bonneville Power Administration (BPA) provides whole- sale electricity to the City of Ashland. BPA is an arm of the U.S. Department of Energy. It was created by the Congress in 1937 to act as marketing agent for power from Bonneville Dam, which was nearing completion. Bonnev- ille Dam was the first large dam built by the U.S. Government on the Columbia River or its tributaries. When Grand Coulee Dam neared completion in 1941, BPAwas designated to also market the power from this project. BPA has since been made marketing agent for 28 other Federal dams in the Northwest. To accomplish its mission, BPA has designed and built the nation's largest network of long-distance, high-voltage trans- mission lines. This system has grown in the past 45 years to"' become the main grid for the Northwest. ~ BPA does not build dams or powerplants. The federal dams are built and operated by the U.S. Army Corps of Engineers and the Bureau of Reclamation. Most Corps and Bureau projects are multipurpose. That is, they are designed to provide flood control, navigation, recreation, and otherSpublic benefits o as well as to generate electricity. The power features of the federal dams, together with the BPA's trammission system, are operated as a single unit known as the Federal Columbia River Power System. BPA's service area includes that portion of the Columbia River drainage basin that lies within the United States. The full service area covers about 300,000 square miles. Most of the federal power is generated east of the Cascade Mountains. BPA trammits large amounts of energy over the mountaim to bulk power stations near load centers west of the Cascades. Most of the northwest's major cities are west of the mountaim. BPA's trammission system is connected with other transmis- sion systems. Besides scheduling and dispatching power from the federal dams - which have a total peaking capadty of about 19 million kilowatts - BPA "wheels" (transmits) over its grid large amounts of additional power from non-Federal utilities. The Federal system supplies about 50 percent of the power generated in the region. BPA's transmission network provides nearly 80 percent of the transmission capacity in the region. This network serves as the "backbone" grid for all intercon- nected utilities in the Northwest. BPA wholesales power to 148 Northwest citizens: 54 coopera- tives, 37 municipalities, 26 public utility districts, 15 industrial firms, 8 investor-owned utilities, 6 federal agencies, the Wash- ington Public Power Supply System (Supply System), and an irrigation district. It sells power outside the northwest to 14 utility citizens when no market exists for this power inside the region. ASHLAND'S ELECTRIC SYSTEM System Des~tion The City of Ashland purchases electrical power from BPA via PP&L's Ashland and Oak Knoll Substations. PP&L owns and operates the 115-kV high voltage bus, circuit breakers, two 12,000/16,000/20,000-kVA (65--C) 115/12.47-kV transform- ers, one in each substation, and the 12.47-kV main and transfer bus. Service is provided to Ashland at the 12.47-kV bus with BPA primary metering installed ahead of the feeder reclosers. Both substations are fed by the Baldy to Copco 115-kV trans- mission line. The transformer capacity available is calculated by PP&L to be 24.4 MVA at winter peak for each power transformer. The City of Ashland does not own or operate any substations. The City does own and operate the Ashland Substation 12.47- kV main bus, which serves four feeders, the Morton Street, Mountain Street, the North Main and business distr/ct circuits. All of the 15-kV type W reclosers on the four feeders at Ashland Substation have nominal current ratings of 400 amps. PP&L owns and operates the two circuit breakers at Oak Knoll Substation which provide protection for the Highway 66 and Highway 99 feeders. These circuit breakers are rated at 600 amps continuous current. ..~' The City of Ashland's primary electrical distribution system consists of six 12.47-kV distribution feeders serving an area entirely within backbone primary lines consisting of 336.5 AAC conductors. Feeder branches and tap lines consist of #6 AWG solid copper through #2 ACSR conductor. Underground cables include 1,000 kcmil aluminum fdr substation get-a-ways at Ashland Substation and #2 AL cables for use in residential areas andprimary underground taps. #2, 2/0, 4/0 ALcables are used for 30 commercial and large residential developments. The primary City-owned electric system consists of single cir- cuit pole lines and some double circuit pole lines near the substations. All feeders have tie points to other feeders with normally open air switches or disconnects. The ability to switch and transfer load to other feeders is limited by the thermal capacity of the Highway 66 and Highway 99 circuits in the summer and by the transformer capacity at both Oak Knoll and Ashland Substations in the winter. The existing electric system is well maintained and construction practices conform with industry standards. Some electric distribution facilities within the City limits of Ashland are owned by PP&L. As a result, there are several distribution lines in Ashland that are City-owned but used by PP&L to serve load. The City will be acquiring these PP&L facilities since this unmetered load is already being served by the City's facilities. This would result in a simpler, safer and more reliable overall electrical distribution system within Ashland. E/ectr/c Sa/es In 1990, the City of Ashland purchased 160,753,170 kWh's from BPA and generated 1,855,000 kWh's at the Reeder Hydrogen- erator. Total sales for 1990 equalled 162,608,170 kWh's and line losses equalled 9,813,423 kWh's. 152,794,742 kWh's of these sales were metered and 2,439,323 were unmetered sales. Of the metered sales, 75,689,251 kWh's (or 49.6%) were resi- dential sales, 58,363,054 kWh's (or 38.2%) were commercial/ industrial sales, 14,671,087 kWh's (or 9.6%) were government sales, and 3,468,098 (or 2.3%) were municipal sales. Total revenues of $2,949,505 (or 47.1%) were residential; $2,446,417 (or 39.1%) were commercial/industrial; $669,150 (or 10.7%) were governmental; and $195,789 (or 3.1%) were munidpal. The City generates electricity at the Reeder Gulch Hydroelec- tric Plant, produced from the City's water supply. In 1990, 1,855,000 kWh's were generated at Reeder. In 1988-1989, the general and street funds received $1,868,318 in electric utility taxes and fees. End Use SectorAnaly~ The City of Ashland's utility serves about 6,200 residential accounts. While we do not know precisely, estimates made in developing the original energy element in 1980, assumed about 3,100 (or 50%) of these citizens relied on electric heat. Electric water heating saturation is higher and estimated at about 4,960 (or 80%). Commercial/industrial accounts are numbered at 900. Very little is known about this sector's energy using habits. The only large industrial accounts are Croman Corporation and Parson's Pine Products, both lumber related businesses. Commercial/ industrial sales equalled 37.8% of the total sales in 1990. 11.9% of total sales were for municipal and other governmental operations. The largest use among this group is Southern Oregon State College. The City of Ashland is awinter peakin~ utility. This is due to the large amount of electric space heating, increased lighting needs in the winter (i.e. less daylight hours), and larger amounts of hot water usage, combined with lower incoming water temperature. All of these factors contribute to a winter peaking utility load XI-6 profile. To indicate the size of this load diversity- in June 1988, our system peak equalled 20,690 kW. However, on December 21, 1990, we encountered an all-time system peak of 45,110 kW, or over twice the capacity of June 1988. The City also has a daily load profile which results in maximum usage between 8:00 and 9:00 a.m., and a second smaller system peak around 7:00 or 8:00 p.m. Annual Load Factor is defined as the total amount of kilowatt hours produced divided by 8,760 (# of hours in one year) divided by the highest demand during the year. Calculating the annual load factor for Ashland for 1990 results in: 159.875.070 / 8.760 = .405 45,110 The higher the load factor a utility achieves, the better because utilities which have a constant year-round energy demand for will operate more efficiently. This means that building facilities will be easier, as there is not a major difference between months in demand for energy. Fadlities can operate at the same level year round, not at half caparty for part of the time and full capacity for the remainder of the time. Ashland's load factor is low because our winter peak is nearly double our summer peak. As will be illustrated later, activities which increase our load factor, and therefore decrease peaking, can have beneficial effects on electric utility systems. BPA Billing System The City of Ashland is billed monthly by BPA for wholesale power purchases. The bill is separated by our two points of, delivery (i.e. Nevada and Oak Knoll substations) of electricity. The bill consists of energy (kWh's) and demand (kW's) compo- nents. Under BPA's present rate structure, energy is billed at $.0144/kWh during April, May, June, July and August, and $.0184 for the remaining seven months of the year. Demand or capacity is billed year round at $3.46/kW. We are billed for demand on a non-coincident peak for each substa- tion, which means that the maximum amounts of electricity used for one hour at each substation are added together to determine total demand for the months. Non-coincident means that highest single hour at each substation, regardless if they occur at different times, are still added together to deter- mine total demand for the month. In 1990, the City total wholesale power bill equalled $3,942,795, of which $2,691,574 (or 68.3%) was for energy and $1,251,221 (or 31.7%) was for demand. The current rate structure is scheduled to remain in effect until 1991, at which time, BPA will institute new rates. BPA Contracts and Cooperative Agreements The City presently has a contractual agreement with BPA to purchase wholesale power (Power Sales Contract), and ac- quire residential energy conservation (Residential Weatheri- zation Buy-Back Agreement). We also have cooper~affve agreements for the Super Good Cents new home grant pro- gram and the Energy Smart Design Assistance Program for commercial buildings. The residential Weatherization Buy- Back Program Agreement is scheduled to expire in September 2001. OTHER ENERGY PROVIDERS The city's electric service territory is totally surrounded by Pacific Power & Light. Power purchased from BPA is delivered to the city on PP&L lines and delivered through two PP&L- owned substations. C.P. National provides natural gas service to almost all of Ashland. For the last couple of years, it has advertised exten- sively in an effort to get citizens to select natural gas for space and water heating in new construction, and to encourage exist- ing citizens to switch from electricity to natural gas. The current low price of natural gas, coupled with this extensive media campaign has resulted in more citizens using natural gasthan at any other time in the past. C.P. National has been tentatively sold to Washington Water Power. This sale must be approved by the Federal Energy Regulatory Commission before it will become finalized. The 1980 census data indicated that 558 citizens used oil for space heating. Our experience indicates that this number has declined over the last decade, but we have no idea just how many citizens have oil heat and will probably have to rely on the 1990 census for new data. ASHLAND'S ENERGY CONSERVATION HISTORY Ene~ Element of the 1982 Comprehensive Plan While Ashland had tried various ways to informally encourage energy conservation prior to 1982, the first official movement in this direction was the adoption of the City's energy element. in 1982. It is commendable that the goals and policies of this element have nearly all been satisfied to some extent. This element aggressively pursued conservation and provided the impetus for our actions during the 1980's. Fortunately, our partnership with BPA enabled progress in many areas which the goals and policies addressed. Solar Access In August, 1980, the City of Ashland passed a city-wide solar access protection ordinance. This code was a pioneering effort which paved the way for many other jurisdictions to follow during the 1980's. Presently, there axe solar access ordinances in effect in 30 Northwest jurisdictions and communities. Ash- land's leadership in this area no doubt facilitated similar efforts throughout the region. Performance Standards and Ene~ Density Bonuses When the City passed the Performance Standards Develop- ment Ordinance in 1981, a number of objectives were being sought. One of the major goals was to encourage people, by increased building densities, to construct energy efficient hous- ing. The fact that many developers are choosing to build energy efficient housing under this code demonstrates how successful it is. While the code has been amended and fine-tuned over the past decade, the energy bonuses are still a very positive and popular way to use market-based incentives to encourage ergy efficient housing. Water Heater Wrap Program The first BPA-sponsored conservation program was the Elec- tric Water Heater Insulation Program. This program was begun in late 1981 and under it, a City employee installed R-11 water heaterblankets on citizens' electric water heaters free of charge. The City was reimbursed on a per unit basis for every blanket installed under this program. A total of over 1,120 water heaters were insulated under this program. We estimated that about 199,000 kWh's are saved annually as a result of this program. In 1982, the City began converting all of the City-owned street lights from mercury vapor to high pressure sodium lights. Under this BPA-funded program, over 1,215 City-owned lights and an additional 220 school district and Southern Oregon State College-owned lights were converted. Energy savings on these lighting conversions is estimated to be about 235,000 kWh's per year. ~ WeatheMzagon Buy-Back Program In April of 1982, the City implemented the BPA-sponsored Weatherization Buy-Back Program. Under this program~ BPA purchases first year electric energy savings at .32/kWh. Houses are eligible for ceiling, wall, floor and duct insulation, storm or replacement windows, clock thermostats, and caulking and weatherstripping. Weatherization funds for this program are paid directly to the homeowner as a one-time cash grant, which can cover up to 60% of the total costs of weatherization. Certified low-income citizens are eligible for up to 100% fund- ing. These grant funds do not have to be paid back to BPA or the City. In addition, a loan program through Valley of the Rogue Bank can be utilized by qualified borrowers to cover the portion of the costs not covered by the BPA grant. During the period June 1982 through June 1989, a total of 1,450 residences had been weatherized. The yearly savings for this program is estimated to be about 8,628,000 kWh's. The total amount of money spent for weatherization measures is $2,169,537, and an additional $266,205 has been paid to the City for administration of the program. Solar and Heat Pump Water Heater Market Test From November 1985 to September 1987, the City offered $300 cash rebates to electric water heating citizens who installed qualified solar or heat pump water heaters. This was part of a BPA-sponsored Pilot Hot Water Incentive Program operated by eleven different utilities in the Northwest. It was designed to test whether marketing and/or financial incentives could per- suade citizens to install these alternative water heating devices. This program resulted in 7 heat pump water heaters and 106 solar water heaters being installed. $33,900 were paid to Ashland participants as rebates, and the City received $12,035 for administration of the program. Savings for these 113 systems is estimated to be about 248,600 kWh's per year. Co~ Audit In late 1984 and-early 1985, a total of 69 commercial businesses in Ashland received a free energy audit. This was done under the BPA-sponsored Commercial Audit Program, as it selected engineering firms to provide this service to citizens of various public utilities throughout the Northwest. The Eugene offiCe'of Brown and Caldwell Consulting Engineers did all of the~audits in Ashland. The program only involved providing the auditing service. No money was allocated for implementing the recom- mended energy conservation measures. No follow up was provided to see how many of the recommended measures were implemented by our commercial citizens. £ Since May 1985, the City has been implementing the Super Good Cents energy efficient new home certification program. This program is sponsored by BPA and uses marketing, promo- tion and certification to encourage new homes to be built to energy efficiency levels in excess of the Oregon Building Code. Since the program's start, a total of 178 buildings had been certified as of June 30, 1989. These 178 buildings represent 305 residential units. These houses use one-third to one-half less electricity for space heating than a standard home. Savings for these 305 units is conservatively estimated to be 762,500 kWh's per year. Heating System Ew_h_~___ntion Program This City-sponsored program provides energy information to existing Ashland residential citizens who are considering a change in their heating systems. A thorough energy audit, heat loss calculation, heating system sizing calculation, and an op- erational cost comparison of various types of heating systems are provided to citizens. In addition, a personal loan from Valley of the Rogue Bank, is available for citizens who install an electric zonal heating or retrofit heat pump and associated weatherization, which is required as part of the heating system upgrade. So far, only 7 installations have been financed under this program, but an additional 11 systems were installed with owner financing outside the program. This program is rela- tively new and active promotion of its existence was only begun in August, 1989. Estimated savings for these 18 systems is conservatively estimated to be 36,000 kWh's per year. TABLE Xl - 1 YEARLY ELECTRIC ENERGY SAVINGS DUE TO ASHLAND'S CONSERVATION P~:X~.~MS WATER HEATER WRAP PROGRAM STP~ & /~EA L~GH'nNG PRO:roAM W~ERI~ B~-BAcK P~M S~R & H~T PUMP M~R~ TEST SUPER G~ CE~s P~M H~NG SY~M EVALUA~ P~M 199,000 KWH's 235,000 KWH's 8,628,000 KWH's 248,600 KWH's 762,500 KWH's 36.000 KWH' TOTAL 10,109,100 KW.'s Ener~ Smart Dedgn Ass/stance Program This BPA-sponsored program provides professional energy design assistance for new commercial buildings or major reno- vations/remodels of existing commercial buildings. BPA pays professional engineering firms for computer modeling and otherdesign services that identify energy savings, cost and economics of energy efficient design options. Special awards are provided for buildings that achieve electrical energy savings 10% to 30% over Oregon Building Code requirements. The total yearly estimated electric energy savings, as a result of these programs, has been summarized in Table XI-1. OTHER CONSERVATION PROGRAMS As a provider only of electricity, the City's 6onservation programs are mainly aimed at conserving electric en- ~EAR 19~4 1985 1986 1987 1988 1989 1990 XI-10 ergy. However, other programs are made available to Ash- land's citizens by other fuel providers and the State of Oregon. C.P. National Gas Company, the supplier of natural gas to Ashland and under a franchise agreement with the City, pro- vides a free energy audit and a cash rebate of $350, or a 6.5% loan for weatherization of gas heated homes. It will also finance gas water heaters and furnaces to Ashland citizens. The State of Oregon, through the Oregon Department of Energy, provides weatherization services to homes heated with oil, propane, butane, or kerosene, or heated solely with wood. This program, called the SHOW (State Home Oil Weatheriza- tion) Program, provides 50% rebates for low and moderate income citizens and can also facilitate loans for oil heat custom- ers at 6.5% interest for one-half of the costs of weatherization not covered by the rebate. In addition, tax credits are available from the State of Oregon TABLE Xl - 2 TOTAL ENEI=~Y 125,632,000 KWH's 128,947,000 KWH's 131,872,000 KWH's 128,860,000 KWH's 135,498,000 KWH's 142,154,000 KWH's 151,307,000 KWH's 160,753,170 KWH's M~MUM MONTHLY DEMAND 28 523 KW's 30 705 KW's 31 303 KW's 30 490 ~W's 33 403 KW's 33 902 KW's 41,048 KW's 45, 110 KW's for residents who install alternative energy water heating systems. This credit is based on the per- formance of the solar system. To qualify, the system must be certified by ODOE. On average, one to two solar collectors will provide enough energy to qualify for the maximum tax credit. The maximum credit is $1,500. The credit can be carded forward five years from the year of ap- proval. YEA~ 1983 1984 1985 1986 1987 1988 1989 1990 The State also offers businesses tax credits for projects which conserve or nse renewable resources to produce energy. The credit is a State corporate income tax credit equal to 35% of the eligible project costs. The credit is taken over five years - 10% in each of the first two years, and 5% in the third, fourth and fifth years. Unused credits from one year may be carried forward up to three years. The Oregon Department of Energy also has a program called the Small Scale Energy Loan Program (SELP). Loan funds are available for projects that conserve natural gas, electricity and oil, or projects that produce energy from water, wind, geother- mal, solar biomass, waste materials or waste heat. Individuals, businesses,non-profit organizations and municipal corporations are all eligible for SELP loans. ELECTP. IC LOAO GROWrlt ANO MANAGEMENT Purchased electricity from BPA since 1983 is depicted in Table XI-2. This table also gives the largest monthly demand per year. The city has also generated electricity since 1985 at the Reeder Hydrogenerator. Table XI-3 shows the production figures for TABLE Xl - 3 KWH's TotAL PURCHASED TOTAL GENERATED TOTAL 125,632,000 -0- 125,632,000 128,947,000 -0- 128,947,000 131,872,000 1,659,000 133,531,000 128,860,000 3,168,000 132,028,000 135,498,000 2,056,000 137,554,000 142,154,000 2,402,000 144,556,000 151,307,000 2,818,000 154,125,000 160,753,170 1,855,000 162,608,170 those years. This data reflects a steady increase in loads since 1983, despite quite active and aggressive conservation pro- grams. Since monitored results of BPA's regional conservation programs have confirmed that energy is being saved, we must conclude that load growth would be even higher in absence of our conservation efforts. We have also experienced growth in capacity required to serve our citizens. An all time system peak was set on December 21, 1990 of 45,110 kW's. This particular day was atypical in that we had low temperatures of about 0° F. This worst case weather scenario also caused system peaks for BPA and other public and private utilities in the Northwest. Since BPA's wholesale electric bill includes demand charges of $3.46/kW, the monthly demand component for December 1990 was $156,680. Pro- grams which can move energy sales from peak to off-peak hours could have considerable cost benefits to Ashland's utility. T~e main reason for this is that our winter peak is mostly made up of residential electric space and water heating. Since residen- XI-11 tial accounts only pay energy charges, programs which move energy sales to off-peak times without an overall sales reduction will result in identical sales revenue generated, but will also reduce the demand component of our wholesale bill from BPA. Even programs reducing total sales but significantly shifting loads could be attractive if revenue reductions are smaller than wholesale bill reductions. Demand management is evolving quite rapidly as more and better products appear in the market place. This technology ranges from total utility control of certain appliances remotely, to smart appliances which control themselves. Additional technology includes customer control of appliances and de- mand metering or time of use metering which encourages load shifting for bill reduction reasons. Since there is a large potential for savings, it is in the City's interest to consider demand side managementin planning for future metering, rate setting and other related utility decisions. FUEL CHOICE aNO FUEL SWITCHING Since the City has a dual role of electric utility and a municipal government, our attitude toward influencing citizens' fuel choices creates a dilemma. While most electric utilities in the North- west are aggressively promoting the benefits of electricity over other fuels (especially for space and water heating), our pos/-'" tion has traditionally been that all fuels should be conserved, and we have not tried to influence citizens' fuel choice. Faced with a very aggressive gas company promotional campaign aimed at convincing our citizens to switch to gas water and space heating, the City began considering ways to get accurate fuel choice appraisal information to our citizens. This effort resulted in the heating system evaluation program. XI-12 Its purpose was to allow the City to provide a full picture with all of the facts to our citizens contemplating a major heating system change. One of the main thrusts was not to convince people to switch from gas to electricity, but to try and give unbiased information to citizens. Our Super Good Cents Program, which pays cash incentives for every new Super Good Cents home, has probably caused some people to select electricity to heat their homes. While we have not promoted electric load growth, we have two programs which have effected citizens' fuel choices. While our City government's goal is to promote the efficient use of all resources, the Conservation Division's goal has been to pro- mote efficient electricity use. Because we believe strongly in our programs' merits and our zeal to make them successful, we have probably emphasized the promotion of the efficient electricity use over conservation of fuel sources. It is important to point out, however, that in both the Super Good Cents Program and the Heating System Evalu- ation Program, that while citizens choose electricity for space heating, the increased insulation and weatherization required in the programs still results in our citizens using electric energy more efficiently. It is important to note that power supplied by BPA is predomi- nantly hydro produced electricity, which is a renewable re- source. And while there are environmental costs associated with these dams, most of these costs are fish and wildlife related and are subject to an extensive mitigation plan being imple- mented as part of the Northwest Power Planning Council Northwest Fish and Wildlife Plan, and being paid for by the region's ratepayers. However, with this fact in mind, it isprefer- able to select the renewable resource over other non-renewable resources. Since the City's electric utility is publicly owned, there is less income drain for electridty purchases than by purchasing from other fuel suppliers who pay profits to shareholders. However, it would not be good policy to promote the use of electricity at the expense of our citizens solely for this reason. The current price of natural gas is lower than it has historically been for some time. For this reason, using natural gas for space and water heating in some instances will result in the lowest operating cost for the consumer. But since water and space heating systems are expected to last 10-25 years, we need to try and determine the relative price of gas and electricity in the future. The 1989 Oregon Energy Plan attempts to project the price of gas and electricity into the future. Table XI-4 gives the estimates from the State Energy Plan. If these forecasts indicate future changes, customer fuel choice decisions based on current prices could lead to unwise decisions which, if looked at over a longer time frame, are not economi- cally prudent. THE ROLE OF THE CITY AS AN ENERGY CONSERVATION PROVIOER Part of the problem with only supplying one fuel but trying to conserve all fuels, is that costs of conserving other fuels cannot be paid out of rates. The Conservation Division is funded by the city's electric utility and thus the city's users of electricity fund the energy conservation activities of the department. Thus, we tend to emphasize conservation of elec~tricity over other fuels. This is illustrated if you look at the new~construction process in Ashland. Homes built with electric space heat are scrutinized by TABLE Xl - 4 KWH'S BECK REPORT ENERGY USE FORCASTS YEA. TOTAL ENEReY MA~MU~ MONTHLY DEM/~D 1990 154,049,000 36,636 1991 158,889,000 37,788 1992 162,807,000 38,719 1993 166,664,000 39,637 1994 171,052,000 40,680 1995 175,637,000 41,771 1996 180,349,000 42,891 1997 185,192,000 44,043 1998 190,159,000 45,224 1999 195,274,000 46,441 the City's Energy Conservation Staff. We perform a computer- ized heat loss analysis of the home and then try to convince the builder or owner to take part in the Super Good Cents Program. Because of the current high level of new home construction, it takes all available staff time just to keep up with the electrically heated houses. Thus, no analysis of gas heated homes by the Energy Conservation Staff occurs. While the Building Division still requires the new building to comply with the State Energy Code (Chapter 53), no attempt to encourage additional energy conservation is made. COMPLIANCE WITH THE NORTHWEST POWER Act In the foreword of the first Northwest Power Plan, it states "This plan does not create one additional kilowatt of energy in the region. To accomplish its purpose, the plan must be imple- mented by Bonneville and other federal agencies, theregion's XI-13 utilities, state and local government, private businesses, and the people of the Northwest." Because the City has a dual role of both a local government and a public utility, our responsi- bility to implement the plan is greater. The 1986 plan states that "a central purpose of the Council's Plan is to provide the lowest cost energy future for the Northwest." It goes on further to say "If the provisions of this plan are implemented, the Council forecasts that aver- age retail rates over the next 20 years will be stable or decrease (adjusting for inflation) in all but the highest growth scenario." YEaR TABLE Xl - 5 RESIDENTIAL ENERGY COSTS ODOE FORECAST - 1989 STATE ENERGY PLaN ELECTR~Crrv ($/KWH) NATURAL GAs 0,' {S/GALLO.) 1989 4.62 0.57 0.70 1990 4.55 0.59 0.73 1991 4.50 0.61 0.77 1992 4.43 0.64 0.80 1993 4.39 0.67 0.84 1994 4.34 0.70 0.87 1995 4.31 0.73 0.92 1996 4.29 0.77 0.97 Since keeping electric rates stable has many important benefits for the City's utility and Ashland's citizens, the City should do all in its power to implement the provision of the Power Plan. This includes providing a leadership role to other utilities in the region. Ashland's "can do" attitude in the area of energy conservation has already made our existing conservation efforts very successful and recognized regionally. One example of how this benefits the region is the Super Good Cents Program. Our early success and high rates of participa,'.' tion by local builders influenced other utilities to get involved {n the program. We also provided training and technical assis- tance to utilities just starting the program. As always, our belief in the program's merits was reflected in our operation and this attitude contributed to the success of the program. Successful operation of such programs proves that the attitude of the im- plementing agency has considerable effect on the program's success. XI-14 Regional efforts toward energy conservation will proceed at a more rapid pace because aggressive utilities like Ashland lead the way. We should ensure that our regional leadership contin- ues in existing and new conservation programs in the years to come. As the Northwest moves from a surplus energy situation in future years, more conservation will be needed in our region. Since the cornerstone of the northwest's energy future lies in successfully capturing energy conservation in areas that have yet to be tapped, leadership in the successful implementation of these new conservation programs will be vitally important. Ashland should help this effort by operating future conserva- tion programs with the same measure of professionalism and enthusiasm embodied in our current programs. Our successful programs will signal to the region that "if it works in Ashland, it can work here." AIR QUALITY The Bear Creek Valley, including Ashland, contains one of the highest propensities for air pollution in the nation because of the physical geographic situation of the valley, its particular land forms, and the prevailing climatic conditions. The topography of the bowl-shaped valley, ringed by mountain ridges on all sides, leads to frequent, prolonged periods of stagnant air and frequent violations of State and Federal air quality standards. Temperature inversions trap the polluted air in the valley, reducing visibility and threatening the health of the community. The State Department of Environmental Quality (DEQ) has designated the Medford-Ashland area as an Air Quality Main- tenance Area (AQMA). Em/ss/ons Air pollutants are emitted from awide variety of sources. These sources can be classed into three broad categories - point sources, area sources and mobile sources. Point sources emit large volumes of pollutants from a stati0rF~y location. Some examples include manufacturing plants, lumber and paper mills, and rock quarries. Area sources are collective groups of relatively small sources of pollution spread over a broad geographical area. Woodstoves, field burns, slash burn- ing and road dust are some examples of area sources. Cars and trucks are examples of mobile sources. Po!b_~_tion Types The following pollution types are monitored by DEQ for com- pliance with the National Ambient Air Quality Standards estab- fished by the Environmental Protection Agency (EPA). Carbon Monoxide (CO) Carbon monoxide is a colorless, odorless, highly toxic gas. Medford is the only city in the county with a CO pollution problem. The vast majority of this CO problem is produced by motor vehicle emissions. The last five years of available data indicates that this problem is being steadily reduced. According to the 1988 Air Quality Annual Report, Medford exceeded CO standards on 24 days in 1983, 18 days in 1984, 35 days in 1985, 16 days in 1986, 4 days in 1987 and 2 days in 1988. When this is compared to 1977, when the CO standard was exceeded on more than 200 days, this dramatic improvement is demon- strated. A number of reasons combined to bring about this improvement in air quality with respect to CO in Medford. They include traffic pattern changes, vehicle inspection and maintenance program (I/M), and a gradual reduction of older non-catalytic equipped automobiles. Photochemical Oxidants Photochemical oxidants are hydrocarbons and oxides of nitro- gen which react with sunlight to produce ozone (03) and a mixture of other noxious and irritating chemicals, commonly known as smog. While this problem was quite severe in the late 1970's (the standard was exceeded on 40 days in 1977), the latest data indicates that Medford has had no days when the ozo~te exceeded the minimum standard from 1983 to 1987. However, it is important to note that the ozone standard was relaxed by XI-15 the federal government in 1982. Even this relaxed standard was exceeded on one day in 1988. Particulate Emissions Federal Standards for particulate emissions until 1987 were in the form of Total Suspended Particles (TSP). Effective in July 1987, this standard was replaced by a standard for particles with a diameter of 10 micrometers or smaller. These smaller particles (called PM10) require different sampling equipment than did TSP. DEQ, in anticipation of the standard change, began sampling for PM10 in 1983. Therefore, the historic data for PM 10 only dates back to 1983. Medford exceeded the PM 10 standard 0 days in 1983, 5 days in 1984, 13 days in 1985, 2 days in 1986, 5 days in 1987 and 7 days in 1988. There is also an annual PM10 standard. This standard has been exceeded in Medford from 1984 to 1988. In May 1987, the Jackson County Board of Commissioners appointed the Jackson County Woodburning Task Force to re- evaluate the particulate air quality issues and advise local governments on the most appropriate woodburning control measures. The Task Force made the following recommenda- tions in December 1987: 1)Mandatory curtailment of woodstove and fireplace/'.' use (with limited exemptions) during periods of air; stagnation; 2)Comprehensive public education program; 3)Clean air utility rates for electricity and natural gas; 4)Financial incentives and subsidies for cleaner woo XI-16 dburning units; and 5)Ban on installation of non-certified woodstoves. The Task Force report was given to the Jackson County Board of Commissioners and cities in the Rogue Valley. The recom- mended strategy targeted a 75 percent reduction in residential woodburning emissions on peak PM 10 days and a 50-60 percent annual reduction. Jackson County has initiated efforts with thecities of Medford and Central Point for a coordinated action plan. The Department has identified additional control require- ments for wood product industry in the Medford-White city area. These include tighter emission requirements for veneer driers and wood-fired boilers, more comprehensive industrial requirements for continuous emission monitoring and/or op- eration and maintenance, and more restrictive offset require- ments. Such additional industrial measures are needed to help meet daily or annual standards and avoid more drastic, if not impractical, controls on residential wood heating in the future. State rules would be needed for these industrial measures; the Department has drafted these rules and intends to request authorization from the Commission to hold a public hearing on them once local governments have made decisions on the wood heating strategies. In the Medford-Ashland AQMA, there has been an overall decreasing trend in particulate emissions as a result of reduced emissions from industry. Improvement in the efficiency of wood used for home heating and curtailment during bad air quality are the areas that can make the most impact in efforts to improve the County's air quality with respect to particulates. Woodburning Ad~iso~ Jackson County instituted a voluntary woodburning advisory in 1985. This program designates days as red, yellow or green during the months of November, December, January and Feb- mary. The number of red days since the advisory was instituted have been 19 in 1985-86, 30 in 1986-87, 3 in 1987-88 and 19 in 1988-89. Follow-up studies done by the County indicate voluntary com- pliance with the advisory was very low. Therefore, both the City of Medford and Jackson County instituted mandatory wood- stove curtailment ordinances to control woodstoves on red days. COSTS OF AIR POLLUTION Air pollution impacts the health of humans, wildlife popula- tions, the vegetative environment, the natural ecosystem, and local climates. It reduces visibility, aesthetic quality, and even the amount of usable solar radiation that reaches the ground. It is a scientific fact that diseases like bronchitis, emphysema, asthma, tuberculosis, lung cancer, pneumonia, and others are related to air pollution. It can also accelerate deterioration of many man-made and natural materials. ASHLAND'S ROLE Many residents of Ashland perceive air quality as a Medford - Central Point - White City problem, not Ashland's. While it is true that Ashland's air quality is better than those areas of the AQMA, it is still important to realize that we are all in the same airshed and pollutants caused by Ashland's residents contribute to the overall problem. It is very important that we establish that it is a county-wide problem, which can only be solved by efforts by every county resident. Ashland should use its re- sources as both a local government and a municipal electric utility to foster the wise use of energy and enhance the valley's air quality. The Ashland Citizen's Air Quality Advisory Committee was appointed by the Mayor in 1989. It's goal was to develop an overall air quality enhancement program to present to the Ashland City Council for adoption. Things considered were education, ways to make the wood burning advisory have higher compliance rates, financial incentives and/or subsides for in- creasing the efficiency of wood usage, bans on installation of non-certified woodstoves, clean air utility rates, outdoor burn- ing regulations, and many other ideas. These actions should guide the City in trying to improve the valley's air quality. WATER CONSERVATION The issue of water conservation was not considered in the 1982 Comprehensive Plan. However, a number of reasons have surfaced since then to merit this special section in the City's Conservation Element. First, the City, in 1989, funded a water supply report by R.W. Beck and Associates. The study concludes that "Ashland must augment its water supply capabilities within the next 10 years". It makes sense that any new water supply resource should be delayed as long as possible through cost-effective demand reduction programs. Second, planning for water systems has traditionally focused on new supply options, much like electric energy planning did in the 1970's. The lessons learned by the electric industry in the XI-17 1980's can be applied to develop the most cost effective combi- nation of demand side reduction and new supply options as a future source of water for the City. Third, the City's successful energy conservation programs can be used as models to develop demand side reduction programs for the water utility. Fourth, efficient use of water can accrue direct financial bene- fits to Ashland's residents and businesses. Fifth, the Beck report calls for bonded indebtedness to finance the new supply. Getting voter approval for this could be politically difficult. On the other hand, an effective demand side program, coupled with revenue generation for a new supply, along with a delayed date for a new supply, could result in financing the new supply without bonded indebtedness. Sixth, a number of new water conservation products are now available in the marketplace. These products provide the same or better levels of water services with lesser amounts of water usage. A~and Wato'Donand National data indicates that Americans use about 77 gallons pgr~' day per person for inside water usage. Outside water usage equals about the same amount as inside usage. Therefore, the national average of about 150 gallons/person/day shows that Ashland residents use about the same amount of water as typical Americans. XI-18 WATER CONSERVATION POI~SIL~ Many new products are now available that conserve water but still provide the service that people expect. According to an article in the July/August 1988 issue of Home Energy Maga- zine, "A home retrofitted with advanced water-conserving devices inside and out saves 20 to 55 percent of the total 150 gallons/ person/day, depending on which devices are installed and which modifications are made to existing appliances." Another article looks at successful retrofit water efficiency programs across the nation. In programs in both San Jose, California and Phoenix, Arizona, savings equalled ten gallons/ person/day. These were measured savings,not calculated sav- ings. Both of these programs saved water by concentration on indoor water usage, not outdoor watering. There may exist a number of cost effective measures which could be implemented in existing water usage to extend our existing supply. We need to look at these alternatives and weigh their effect on the timing of a second water source. New~ The City has a number of options to reduce future demand from new growth which could result in less incremental demand per new residences than presently occurs. Many other jurisdictions have utilized codes and other methods to reduce water usage in new homes. A study done by the Rocky Mountain Institute (RMI), in. looking at a proposed dam for Denver, found that indoor water usage can be reduced from 80 gallons/day/per capita to 53 gallons, or 33.8% by installation of one gallon per flush toilet, two gallons/minute low flow showerheads, and aerators for kitchen and bathroom faucets. This study states that this equipment is readily available, involves no change in lifestyle, works at least as well as conventional equipment and looks as attractive as equipment in use today. This study states "Engi- neering tests under laboratory conditions and in house per- formance data show many 1.0 to 1.5-gallon-per-flush toilets perform substantially better than 3.5 gpf models." It recom- mends passing building code plumbing requirements as the proper first step in the orderly development of a water effi- ciency program. The City should make efforts to ensure that all new residential construction is built with water efficient equipment. Code requirements for new water service have already been adopted in California by Goleta, Monterey, Santa Monica, and Los Angeles. Glendale, Arizona, Highland, New York and the Commonwealth of Massachusetts have enacted similar re- quirements. Our current rate structure is not geared to encourage efficient water usage. Our rates encourage more use by offering volume discounts. An inverted rate structure should be considered both to encourage efficiency and generate revenue for future.needs. Inverted rates are a more equitable way to generate revenue for future demand or supply side water options, as the basic house- hold needs would not cost more. But the "luxury" use of water beyond the minimum amount a household needs for its use would be at a higher cost. TAeLE Xl-6 ASHLAND WATER CONSUMPTION P~X~N SYSTEM LOSSES_ (M,LLON CAL) (PER CENT) PER CAPITA Us~3E 1977 1,031 36% 190 1978 1,098 34% 2O9 1979 1,161 40% 216 1980 1,224 32% 226 1981 1,191 28% 214 1982 1,102 27% 199 1983 1,101 35% 196 1984 1,067 27% 187 1985 1,180 30% 204 1986 1,258 3O% 217 1987 1,281 23% 219 1988 1,180 24% 198 THE Ftrru~ We can only be sure that future energy and resource usage in the next 20 years will be characterized by change which could be profound and significant. The City must monitor changes and be able to adapt programs and policies to accommodate these changes. Deregulation of the natural gas industry, more diver- sified investor owned electric utilities, mergers and buy-outs of utility companies, acquisition pressures on small systems both public and private, wider transmission access, more independ- ent power producers, new forms of energy generation, techno- logical production breakthroughs, more competition in the marketplace, new products which utilize energy and resources, XI-19 more informed consumers and citizens, global warming, acid rain, and increased environmental regulations are a few of the things that loom on the horizon. This new set of rules will potentially impact the operation of our conservation programs and priorities. It is vitally important that we monitor and identify these changing conditions and be flexible enough to adapt to these changes. In this changing future, we must keep in mind that our city should continue to operate and provide programs which are sensitive to our citizens' wants, but also in the best long term interest of all of the citizens of Ashland. This may require us to do things and provide programs outside our current scope of operation. We need to keep an open mind and continually monitor all of our options with forward looking vision and not be constrained by our past history or the activities by other utilities or BPA. GOALS AND POLICIES ASSUMPTIONS: Conservation of energy, air quality, and water resources will continue to be very important in the region and especially in Ashland. Through its policies and programs the City is in an excellent position to effect significant energy savings and re- source conservation. City policies and programs directed to- ward energy efficiency and resource conservation are firmly in place in Ashland and we are recognized regionally for our success and leadership in these areas. The current transitional nature of the energy situation will require and reward a vigorous planning effort, which is flexible XI-20 enough to adopt as changes occur. GOALS:THE CITY SHALL STRIVE, IN EVERY APPROPRI- ATE WAY, TO REDUCE ENERGY CONSUMPTION WITHIN THE COMMUNITY. WATER CONSERVATION AND AIR QUALITY ENHANCEMENT SHOULD ALSO BE PRO- MOTED. PROGRAMS SHOULD EMPHASIZE GREATER EFFICIENCY IN END USE, RATHER THAN SACRIFICES IN LIVING STANDARDS. IN GENERAL, POLICIES THAT EFFECT CHANGE THROUGH A COMBINATION OF ECONOMIC INCEN- TIVES AND PUBLIC EDUCATION SHALL BE CONSID- ERED MORE APPROPRIATE THAN POLICIES INVOLV- ING STRICT LEGAL REQUIREMENTS OR MANDATES. THE CITY SHALL GIVE DUE ATTENTION TO ENERGY AND RESOURCE CONSERVATION AND AIR QUALITY ENHANCEMENT IN ALL PLANNING ACTIONS AND CITY ACTIVITIES. POLICIES: 1) Information and Education A)The City shall continue to develop clear infor- mation for the general public to help educate them on energy conservation, load shaping, water conservation and air quality enhancement. By relying on education as a cornerstone of City policy, we can be assured that programs will be accepted and embraced by Ashland's citizens. It is very important that all staff, but especially everyone in direct contact with the public, understand and believe in the importance of these programs and how they benefit not only individual citizens, but also the City and the utility. C)The City shall strive to ensure that policies from various City departments do not conflict with each other but enhance not only each other, but also the overall goal of fostering wise resource usage. D)The City shall continue to provide creditable energy information to the general public. The competitive energy markets of today should not bias City policy or the reliability of our information. We should not promote the use of one fuel over another, but strive to reduce all forms of energy and resource usage. E)The City can gain invaluable information and assistance from other utilities and utility organizations. We should continue our active role and communication network with these entities. That way we can learn from their programs and experiences. F)The City's utility billing process provid?~'us with a valuable means of communication with our citizens. We should continue to utilize bill inserts to inform and educate our citizens, and promote our goals and programs. 2)Existing Housing A)The majority of the City's housing stock is already here. Moreover, the older, existing homestypically have a greater need for weatherization due to poorly developed insulation technology and a lack of concern for energy effi- ciency at the time of their construction. While the City has weatherized over 1,450 elec- trically heated residential units, we estimate that at least 1,400 more units with electric heat are in need of additional weatheri- zation. These units will be more difficult to reach because a high percentage of them are not owner-occupied. We need to continue to aggressively operate the BPA-funded residential retrofit weatherization program and its success to weatherize as many of these units as feasible. B)Weatherization of homes that heat primarily with wood heat can greatly enhance the County's air quality. Replacement of older wood stoves with new certified clean burning woodstoves should also be encouraged. The State Home Oil Weatherization program (SHOW) and the City's Save Our Livability, View and Environment (SOLVE) program provide funding mechanisms (i.e. grants and loans) to help citizens weatherize wood heated homes. The City shall make efforts to publicize and facilitate using these programs for this purpose. C)Program experience from other areas indi- cates that water conservation in existing homes can provide additional water for growth. Programs aimed at acquiring this resource shall be thoroughly evaluated on equal footing with new supply options. D)Energy efficient appliances represent a cost effective energy conservation resource. People should be ,en- couraged to install energy efficient appliances. Incentive pro- grams, codes and rebates are possible ways to foster this policy. E)The cost of photovoltaics continues to decline. At some point in the future, they could be cost competitive with alternative forms of energy generation. The City needs to monitor this technology and accept and embrace it when it becomes cost effective for our citizens to utilize. F)Lighting technology is evolving quite rapidly. This area could also provide a cost effective strategy to pursue in homes. The City shall keepupdated as this technology evolves and help educate citizens who could benefit from these technological advances. G)Passive solar design and sum tempering has application in existing homes. Also, solar water heating tech- nology and photovoltaics might prove to be very cost effective in the future in existing homes. Consequently, solar access pro- tection is still very important. Therefore, we shall continue our aggressive policy of protecting solar access. H)Energy rating and certification systems for existing homes are gaining more prominence throughout the United States. They utilize the competitive marketplace to reward energy conservation efforts. There exists potential in Ashland to encourage weatherization and appliance upgrades by such a system. We shall explore the costs and benefits oF' employing such a system. / I)Solar water heaters, coupled with State tax credits, can be a cost effective investment for some households in Ashland. We shall make tax credit information, technical assistance, and economic analyses available to Ashland citi- zens for whom solar water heaters are an attractive investment. J)Multi-family housing is difficult to weatherize because most owners do not pay heating bills, but their tenants do. Therefore, other types of motivation is necessary to encour. age weatherization of multi-family units. However,, utility weatherization programs, coupled with the State Business Energy Tax Credits (BETC), can sometimes sufficiently moti- vate owners. The City shall promote and educate landlords to the benefits of weatherization along with the BETC to reach this difficult market. 3) New Housing A)The City's Super Good Cents new home certi- fication program has been very successful in encouraging new energy efficient electrically heated homes to be built. We shall continue to aggressively market this program and assure its continued success. B)Some new homes are not built to the efficiency levels of Super Good Cents homes. Efforts shall be made to educate all builders in the benefits of energy conservation and encourage higher levels of conservation in all new homes. C)New homes and apartments are being built which do not utilize the latest technological advances in water consuming devices. The City shall require that only water conserving equipment be installed in new construction. This should be done to accommodate growth with lesser incremental water demand and also to eliminate the need to return to these homes later to retrofit them with water conserving devices. D)Passive solar design and sum tempering are very cost effective in new home construction. They shall encouraged in new housing developments and individual houses. XI-22 E)The City shall address overall energy usage of new developments instead of just looking at houses on an individual basis. Areas to be considered could be transporta- tion energy, recycling, cornposting, communal gardens, water usage and solar access protection. G)Appliance efficiency shall be encouraged in new housing. This could be done through existing programs (i.e. Super Good Cents), by codes, by education or by incentive programs (i.e. density bonuses). All of these options shall be considered in trying to achieve this goal. 4)Commercial and Industrial Sectors A)Very little energy conservation has occurred in this sector in Ashland. BPA will be sponsoring commercial conservation programs in the next decade to begin capturing this resource. The City shall keep abreast of these develop- ments and offer these programs to our commercial customers as they become available. B)The State Small Scale Energy Loan Program and Business Energy Tax Credit can help finance energy con- servation in the commercial/industrial sector. The City shall publicize their existence in conjunction with any commercial conservation programs we offer and to any other inte~gted businesses. ; C)The City's Energy Smart Design Assistance Program, sponsored by BPA for new commercial buildings and major commercial remodels, can have a significant effect on energy usage in commercial buildings. The City shall continue to aggressively market this service and also encourage BPA to continue the program beyond the initial three year period. D)If BPA does not make a commercial energy auditing program for existing businesses available by 1993, the City shall investigate starting our own commercial energy au- diting program. Such a program could rely on reliable infor- mation, education, awards, civic pride, peer pressure and possibly even financial incentives to encourage energy and water conservation in this sector. E)The City knows very little about the potential for water use efficiency in this sector. We need to begin gathering data about this sector so water conservation can be evaluated for businesses in Ashland. F)The City shall ensure that Chapter 53 of the Oregon Building Code, which deals with energy conservation, is adequately enforced for businesses being constructed in Ash- land. The City's new Electrical Inspector could be especially helpful in this by evaluating lighting systems for not only code compliance, but also for cost effective investments beyond code requirements. 5) Land Use Planning and Zoning A)The energy efficiency density bonuses in the City's performance standard ordinance have been very suc- cessful in encouraging new homes to be built more efficiently than Oregon building code requirements. This bonus shall be preserved and maintained in future versions of this code. B)Performance Standards' density bonuses for energy efficient housing have not been utilized in multi-family developments on R-2 and R-3 zoned land. This is because t. he base density is high enough that additional density is not needed. The base density in R-2 and R-3 developments shall be X1-23 reduced accordingly so developers will have an incentive to building energy efficient multi-family housing. C)Many housing developments require a Conditional Use Permit because they are proposed for land not zoned residen- tial (i.e. E-1 or C-1 land). The City shall have the policy of requiring as a condition of approval that these developments be built to the energy efficiency standards of the Performance Standards Ordinance in all of these conditional use approvals. D)AII planning applications for new commer- cial, industrial or large residential buildings (i.e. Site Reviews, Conditional Use Permits, Variances, etc.) shall include the following information as part of the application or prior to building permit issuance: -Building plans to scale of the proposed structure including elevations showing all windows on all sides of the structure. -Proposed material and levels (R-Values) of insulation of the ceiling, floor and all walls of the structure. -Type and size of the proposed lighting and heating system for the structure. -A description of the proposed lighti~'g system for the structure. -A description of any types of energy used during the production of a product or service delivered or produced by the use. (This applies mostly to industrial uses.) -A description of the method of water XI-24 heating, if any, proposed for the structure. This information shall also include your best estimate as to the total annual amount and temperature of hot water that will be required for the proposed use. -A description of the method of refrigera. tion, if any, proposed for the structure. (This is usually associ- ated with food and frozen food.) This information shall also include an estimate of the total amount of the annual refrigera- tion load of the proposed building. .Any other energy information which will aid the City's Conservation Division in computing the above items. 6) Load Control and Shaping A)The City shall investigate the cost and benefits of various. load control strategies for residential electric water heating systems and space heating systems. B)Our citizens have very little understanding of the distinction between energy and capacity (or demand). If properly educated on this concept, many people might volun- tarily change discretionary energy usage patterns in a way which could help shape the City-wide electric load. C)Energy and demand rate structures can be used to encourage commercial/industrial citizens to reduce their total electric demand on the City's electric system. As rates are changed in the future, the goal of load management shall receive due consideration in these rate setting matters. D)The newly installed remote metering systems at our substations could provide instantaneous readouts of electric usage through use of a phone line, computer and modem. The City needs to investigate the cost and benefits of setting up this system. E)On peak and off peak electric rates and/or demand charges could give the correct pricing signals to citi- zens in encouraging load reductions. However, the City's present metering system does not have this capability. Any changes in our metering system should consider this capability and the cost and benefits it could provide. F) Load management programs should share the cost savings with citizens providing the load management sav- ings. Also, they should be designed so as to not inconvenience the customer or reduce his standard of living. G)The City's largest electricity citizens could possibly alter their load patterns and result in wholesale electric bill savings for the City. We should work with these citizens and see if this is feasible and cost effective. 7) Water Conservation A)Water rates currently are fiat in the residen- tial sector and declining in the commercial/industrial s~f0r. An inverted or increased block rate (i.e. more water usage costs more per unit) can help give the correct pricing signals to citizens. The City shall consider changing the water rates to encourage water conservation and reduce waste. B)The public needs to be educated about water usage and water conservation. Typical~vater usage by applica- tion needs to be publicized so citizens can make more informed decisions about water usage. C)Irrigation is a large water usage and it also can be accomplished with lower quality water. Therefore, water conservation efforts shall be directed toward an overall reduc- tion of water usage (conservation) and substitution of lower quality water for outdoor irrigation. D)Under current state law, as lands with TID irrigation rights use annexed to the City and converted to urban uses, the TID water right must be surrendered. If these uses could continue to utilize TID water for landscaping and irriga- tion, newwater demand could be significantly reduced on newly annexed land. The City shall explore ways to see if these could be facilitated. E)The City shall maintain City facilities which deliver TID water to City residents to ensure that this system is usable to the maximum extent for irrigation. F)The City should institute a "Water Develop- ment Trust Fund" which would require payment into a fund for every building permit which would cause increased water demand. The money in this fund should only be used to pay for increased water supply or water conservation programs. 8) Future Considerations A)There would be advantages to the City if we were to become a full energy provider. Therefore, if the gas company becomes available for sale, the City should thor- oughly evaluate this option of purchasing the gas company's in- frastructure within the city limits. 33-25 B)The future will be quite dynamic and volatile in the energy arena. The City needs to actively keep abreast of new advances in technology and embrace and encourage ones which can benefit water conservation, air quality, energy con- servation or production. C)Smart homes, computer and other new elec- tronic devices will require a higher level of electric service and expertise than currently required. The City has to take what- ever measures necessary to ensure that this quality electric service and expertise is available for our citizens. D)Small scale energy production systems are becoming less expensive and more common. The City needs to make sure that we accommodate this change and integrate into our electric system so citizens will not be tempted to bypass our electric system entirely. E)Utilities are beginning to learn that we can no longer just sell our product. We must continue to educate people on the wise use of energy. Our responsibility no longer ends at delivering power to the meter, it extends throughout the entire process of using our product. Conservation shall serve as the foundation of programs designed to meet this new chal. lenge "' XI-26 ORD. #2629 5/21/91 AMDS. ASHLAND COMP PLAN - Chpt. XI "ENERGY."