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AGENDA
CITY COUNCIL WORK SESSION
Amended 8/4/2020 11:22 AM
August 4, 2020
4:00 PM, City Council Chambers
130 S Galena Street, Aspen
I.WORK SESSION
I.A.Public Health Discussion
I.B.REMP Discussion
I.C.Roundtable
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MEMORANDUM
TO: Mayor Torre and City Council
FROM: Ashley Perl, Climate Action Manager
THRU: CJ Oliver, Environmental Health and Sustainability Director
Phillip Supino, Community Development Director
MEMO DATE:July 31, 2020
MEETING DATE:August 4,2020
RE:Renewable Energy Mitigation Program (REMP)
PREVIOUS COUNCIL ACTION:At a work session on June 8, 2020, City Council provided initial
approval to use $1.4 million of City of Aspen REMP funds in 2021 to fund the Community Office for
Resource Efficiency (CORE). City Council also directed the Board of Directors for CORE to return to
City Council with a long-term organizational funding plan that shows a decreased reliance on City of
Aspen REMP funds in future years, beginning in 2022. Lastly, City Council requested a joint work
session with the Pitkin County Board of County Commissioners (BOCC)to understand further the
County’s intended direction for REMP in future years.
BACKGROUND:This memo is intended to provide City Council with an updated status of the
Renewable Energy Mitigation Program (REMP) fund and to provide City Council with an opportunity to
discuss the future direction of REMP with the BOCC.
Given that City Council has previously discussed the 2021 funding for CORE, this joint work session will
not focus on CORE and its immediate funding needs. Instead, the goals of this joint work session between
the City of Aspen Council and the Pitkin County BOCC are to:
inform the BOCC of Council’s views and policy goals with respect to the REMP program, and
to gain clarity from the BOCC about the future of the joint REMP relationship between the City
and the County.
At the June work session, City Council heard from Pitkin County staff members about the recently
adopted changes to Pitkin County’s building and land use codes. In order to focus the work session
discussion on the future of the County-City REMP relationship, staff will not present information about
City of Aspen building codes.The City has an industry-leading building and energy code, with plans to
adopt new and updated codes in 2021. That process will provide opportunity for Council and staff to
ensure the City’s codes deliver upon Council’s energy and climate action policies.
REMP Basics.In 1999,REMP was adopted as a part of the Aspen/Pitkin County building and energy
code that applies to new construction, remodels,and additions. It went into effect in 2000.Attachment A
contains the pertinent language from the City of Aspen code that relates to REMP.REMP applies to
homeowners and commercial property owners who install systems with high outdoor energy usage,such
as snowmelt surfaces, outdoor pools, spas, etc. Properties in Pitkin County (outside of the City of Aspen)
are also subject to REMP if the structures exceed a certain square footage. Developers of properties
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subject to REMP have the option of installing a renewable energy system on-site or choosing to pay a fee
(REMP fee) in lieu of on-site mitigation.Installing solar photovoltaics (PV), solar water heating, and
geothermal heat pump systems are examples of renewable energy projects that count as on-site mitigation.
REMP payments are collected by the City’s Community Development Department and held in a fund
until City Council approves use of the funds for eligible projects and expenses. A similar collection and
approval process occurs through Pitkin County. Historically, a portion of the collected REMP fees have
been passed onto CORE each year for community grants, energy efficiency programming, and climate
action work in Pitkin County.
REMP’s Impact.REMP funds are put towards a variety of community projects that reduce greenhouse
gas (GHG) emissions in Aspen and Pitkin County through the reduction of energy use in homes and
businesses and by adding renewable energy to the grid. Improving energy efficiency and installing
renewable energy has the added benefit of helping residents, businesses, and public entities improve the
safety and comfort of their buildings. Another significant achievement of REMP is the acceleration in the
deployment of renewable energy across the community.
Both Pitkin County and the City of Aspen have a long history of supporting renewable energy and
climate-friendly policies and programs. Attachment B provides highlights from the last 20 years of
accomplishments in this area. The REMP fund has been vital to the success of Aspen’s climate action
programs since the City of Aspen first adopted GHG reduction goals in 2004. Energy use in buildings,
including homes and commercial properties, is the largest contributor to Aspen’s GHG emissions. REMP
funding supports programs that reduce energy use, and thus carbon emissions, from those buildings. To
reach the Aspen community’s 2020 goal of a 30% reduction in GHG emissions and the 2050 goal of an
80% reduction from 2004 levels, Aspen relies on the impact of REMP dollars and the continuation of its
associated energy efficiency and renewable energy programs. The joint City-County funding relationship
and ongoing support of CORE has been central to the success of these initiatives.
DISCUSSION:
Recent Financials.REMP funds are collected throughout the year by the City of Aspen Community
Development Department and dispersed to CORE twice during the year. City of Aspen REMP funds are
also transferred to the Climate Action Office to support energy efficiency programs.
2020
Current REMP Balance: $4,740,000
CORE’s 2020 Total REMP Request: $2.4 million
City of Aspen REMP Contribution 2020: $1.2 million
Pitkin County Contribution 2020: $1.2 million
Additional 2020 REMP Expenses:
$130,000 for City of Aspen Climate Action
$500,000 for one-time energy efficiency project at Truscott
2021
Projected REMP Balance at start of 2021: $4,105,000
CORE’s 2021 Total REMP Request: $1.6 million
City of Aspen Anticipated REMP Contribution 2020: $1.4 million
Pitkin County Anticipated Contribution 2021: $200,000
Additional 2021 REMP Expenses: $150,000 for City of Aspen Climate Action
Remaining Funds Available (Fund Balance at end of 2021): $3 million
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City Council will have the opportunity to hear from CORE this fall when Council reviews the complete
2021 budget, at which point, City Council can choose to confirm funding for CORE in 2021, and staff
will provide updated budget numbers to inform that final decision.
City and County Discussion.As the numbers above demonstrate, the City of Aspen REMP fund remains
intact and staff doesn’t anticipate significant changes to the City’s REMP collections in the foreseeable
future. REMP collections depend in large part on annual development activity and the frequency at which
development applications trigger compliance with REMP and choose to pay fees instead of mitigate
onsite, which is difficult to predict.
Looking forward, City Council expressed support for using REMP fees to fund and support CORE,
however Council also expressed a desire for the total portion of funding going to CORE from the City’s
REMP fund to decline in proportion to the County’s contribution in future years. City Council is
committed to climate action and energy efficiency and these are important services to the community.
Since the inception of REMP, climate action work has been a key use of the City’s REMP funds, and
barring significant policy changes from Council, the City will continue to innovate and lead with
aggressive climate action work, supported in part by REMP funds.
The County’s recent announcement that the Pitkin County REMP balance is declining raises questions for
City staff about the future of what has historically been a joint effort to fund and support energy efficiency
work in the upper Roaring Fork Valley. As staff explores the future of the REMP fund and the
appropriate use of those resources to fund key programs and policy work, clarity on the County’s
intentions for this joint relationship is essential.
Below are questions for City Council to consider and to inform the discussion with Pitkin County:
1. Do City Council and the BOCC share common goals around climate action and energy efficiency?
2. Do both boards desire and see value in an ongoing partnership between the City and the County to
provide energy efficiency and climate action services to the community in future years?
3. What are the shared commitments for funding and support as they relate to carbon reduction and
energy efficiency?
4. Given the projected lack of County REMP funds available in 2022 and future years, what does each
respective board envision for the REMP fund and the joint funding relationship moving forward?
Where is there alignment between Council and the BOCC on the future use of REMP funds and where
are the differences?
5. How might City and County staff support future collaboration and thinking on these topics?
Based on current budget circumstances, staff’s assessment is that Pitkin County’s REMP fund is no longer
able to support the level of energy and climate programming as it has in the past, which is not the case for
the City’s REMP fund. This has consequences for how each organization can provide services to the
community. This narrows the options for the City on how to proceed. To inform staff and Council thinking
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on the future of the REMP fund, we must firstunderstand the BOCC’s goals and vision for providing energy
efficiency and climate action programs to the community.
CITY MANAGER COMMENTS:
_____________________________________________________________________________________
_______________________________________________________________________________
Attachments:
Attachment A –City of Aspen REMP Code Language
Attachment B –Past Climate Action Accomplishments
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Attachment A: City of Aspen Code Language
Aspen adopted the Aspen/Pitkin Energy Conservation Code (“Energy Code”) on December 13,
1999 via Ordinance No. 55, 1999. The Energy Code defines the REMP and the purposes for
which the funds it generates may be used. Specifically, the Code states, in Section 219-R of the
Definitions:
RENEWABLE ENERGY MITIGATION PROGRAM is designed to offset the
environmental impacts and greenhouse gas emissions produced by
non-complying exterior snowmelt, pool, and spa systems and by homes
exceeding 5,000 square feet, fees collected by the program will be used to fund
energy efficiency and renewable energy installations in the City of Aspen and
Pitkin County and, if necessary, purchase wind energy from wind generators in
Colorado or Wyoming. It will be administered by the Board of Directors of the
Community Office for Resource Efficiency (CORE).
Chapter 8 of the Municipal Code of the City of Aspen, Colorado, Appendix CA section 102 and
Appendix RC section 102 are hereby amended to read as follows (2018):
Appendix CA “Commercial Energy Mitigation Program”
Section 102 Payment Option.The CREMP payment option is the difference in energy use
calculated in section 202 and on site renewable credits calculated in section 302 and shall be
paid at the time of the issuance of building permit. The payment, if any, is based on the amount
of energy required, expressed as dollars per square foot, to operate the exterior energy use
systems. No payment shall be made to an applicant the exceeds the energy use with on-site
renewables. All monies collected pursuant to this section shall be recorded in a separate fund
by the City Finance Director and shall be spent in accordance with a resolution by the Aspen
City Council.
Appendix RC “Residential Energy Mitigation Program”
Section 102 Payment Option.The RREMP payment option is the difference in energy use
calculated in section 202 and on site renewable credits calculated in section 302 and shall be
paid at the time of the issuance of building permit. The payment, if any, is based on the amount
of energy required, expressed as dollars per square foot, to operate the exterior energy use
systems. No payment shall be made to an applicant the exceeds the energy use with on-site
renewables. All monies collected pursuant to this section shall be recorded in a separate fund
by the City Finance Director and shall be spent in accordance with a resolution by the Aspen
City Council.
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Attachment B: Aspen and Pitkin County Action on Climate Change
Aspen’s elected officials have long supported ambitious and effective action to both cut emissions
and respond to the impacts of climate change. The following list is an overview of previous actions
that have helped Aspen lead in the areas of climate action and sustainability.
1991:Adopted the 1986 Model Energy Code.
1994:The Community Office for Resource Efficiency (CORE) is founded.
1996:Adopted the Aspen/ Pitkin Energy Conservation Code in 1996, Ordinance 3.
1999:Revised Aspen Energy Conservation Code to collect fees for the Renewable Energy
Mitigation Program (REMP).
2003:Adopted the Aspen / Pitkin Efficient Building Program.
2005:Formed the Canary Initiative (now known as the Climate Action Office) with the goal of
aggressively reducing Aspen’s carbon footprint to protect the community’s future.
2005:Created the first Greenhouse Gas (GHG) Inventory for Aspen, measuring Aspen’s emissions
from the year 2004.
2006: Published Climate Change and Aspen: An Assessment of Impacts and Potential Responses
to understand how anticipated changes are likely to affect key sectors and ecosystems.
2007:Adopted the first Climate Action Plan, covering the years 2007 – 2009. This Plan specified
GHG reduction goals of 30% below 2004 levels by 2020 and 80% below those levels by 2050.
2009:Revised REMP to include Commercial REMPand adopted the 2009 International Energy
Conservation Code.
2012:Published an updated Aspen Area Community Plan that prioritized reductions in GHG
emissions, energy use, and traffic congestion.
2004, 2007, 2011 and 2014:Published community–wide GHG inventories to better understand
the Aspen community’s GHG sources, trends, and reduction opportunities.
2010:Expanded food waste composting operations (a GHG reduction action)
2014:Published Climate Change and Aspen 2014: An Update on Impacts to Guide Resiliency
Planning and Stakeholder Engagement detailing likely climate impacts and providing adaptation
strategies in key sectors.
2015:Accomplished a key CAP goal of achieving 100% renewable electricity for Aspen Electric.
2015:Further expanded food waste composting program, which was officially named SCRAPS!
2016:Finalized a resilience strategy to prepare key sectors of the community for the unavoidable
impacts of climate change.
2016:Adopted City of Aspen Resolution 11, Series 2016 urging the U.S. Congress to introduce
and pass carbon fee and dividend legislation.
2016:Joined the Global Covenant of Mayors for Climate and Energy, an international alliance of
local governments dedicated to reducing global scale emissions through local action.
2016-2019:Joined Colorado Communities for Climate Action (CC4CA), a coalition of local
governments working to affect climate and energy policy at the state level.
2017:Launched the Compact of Colorado Communities to help build the necessary capacity for
effective climate action in local governments throughout the state.
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2017:Adopted Aspen Community Electric Vehicle Readiness Plan and began implementation by
installing public charging stations and providing EV education across Aspen.
2018:Adopted Aspen’s Climate Action Plan and re-committed to reducing GHG emissions 30%
below the baseline by 2020 and 80% by 2050.
2018:Published the GHG Reduction Toolkit, which won a State of Colorado Award for Clean
Energy Leadership.
2018 - 2019:Began implementing the Climate Action Plan.
2019:Released the 2017 Community-wide GHG Inventory, finding that the Aspen community had
reduced its total GHG emissions 20.5% below 2004 levels.
2019:Adopted City of Aspen Resolution #114 in support of Energy Innovation and Carbon
Dividend.
2019:Pitkin County approved the development of a new renewable energy project by Holy Cross
Energy to bring 5MW of energy to the region
2020: BOCC passed new Energy Code and Land-Use Code amendments to reduce energy use in
buildings and encourage more on-site renewable energy.
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