ANNUAL ENERGY REPORT 2014
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1 ANNUAL ENERGY REPORT 2014
2 TABLE OF CONTENTS EXECUTIVE SUMMARY SAVINGS ENERGY REDUCTION USAGE AND COSTS FLEET CHANGING THE ENERGY CULTURE METHODOLOGY
3 EXECUTIVE SUMMARY Since April 2011, when Mayor Dwight C. Jones issued the Green Government Order as part of the Green Richmond Initiative, city agencies and employees have strived to create more efficiency and less waste in city government and to reduce greenhouse gas emissions from city government operations. Every city department is responsible for implementing the provisions of the Order. To assist departments in this effort, the Sustainability Office has championed the implementation of the Green Government Order and provided guidance and technical assistance. City of Richmond Goals: Reduce the city s annual electricity consumption by at least 1% per calendar year using the City s 2008 Greenhouse Gas Inventory as the benchmark (except where other benchmarks may be required by operational necessity) Reduce the city s annual vehicle fuel consumption by at least 1% per calendar year using the City s 2008 Greenhouse Gas Inventory as the benchmark The results of the city s efforts are outlined in this report reflecting the time period from 2008 through 2013 adjusted for weather and avoided costs. Major Accomplishments: Energy Savings cumulative savings $3.1 million dollars Continuous Annual savings* *savings from one time energy efficiency upgrades that will continue annually into the future Electricity Consumption Reduction $1.1 million dollars cumulative electricity reduction Goal in KWh 9 million kwh or equivalent of 1% per year (adjusted) cumulative electricity reduction accomplishment in kwh 26 million kwh or equivalent of 2.9% annual reduction Electricity Expense 2008 total electricity expense $14,146, (adjusted) total electricity expense $14,158,996 Increase in expenses since 2008 $12,906 3
4 Energy Management Excellence: EXECUTIVE SUMMARY City government is constantly growing and changing to meet the needs of our residents and customers. The ultimate goal of an energy management program is to keep the rate of increase in energy consumption to a level that will enable the local entity to absorb these changes in growth without increasing consumption and overall expense. This is extremely difficult to accomplish over a five year period. From , city government experienced many changes that helped the city better serve its residents and customers. However, these changes caused city government to consume 13.7 million in new kwh of electricity during this period. Virtually all of the additional electricity consumption was offset by the city s excellent energy management program and energy conservation accomplishments. Changes that added to the city s electricity consumption from : 69 new electricity accounts added 4 th precinct Police station New Fire Station 17 Department of Environmental Quality (DEQ) required the Department of Public Utilities (DPU) to upgrade Brander Street Waste Water Treatment plant to meet new environmental standards set by DEQ - The upgrade includes ultraviolet (UV) sterilization lights to eliminate chemicals in the processing of waste, added two final sediment tanks, upgraded UV building, added methanol building and updated facility fermentation process along with other upgrades to meet DEQ requirements Absorbed a Dominion Virginia Power Rate increase of approximately 15% during this period 4
5 EXECUTIVE SUMMARY Energy Management Excellence: Figure 1 Benchmarks 170 peer groups (other governmental entities) in Virginia under the Virginia Energy Purchasing Governmental Association (VEPGA) to the City of Richmond, who is also a member of VEPGA. This chart compares VEPGA s average annual electric rate per kwh for the cost of electricity to the City of Richmond s average annual electric rate per kwh. The average electric rate for the cost of electricity for VEPGA is $ compared the to the city's average electric rate $ This shows the City of Richmond is more energy efficient in the use of electricity than the average local government in Virginia. 5
6 SAVINGS Verified savings from are $3.1 million dollars (m). Continuous annual savings are $1.1 million dollars, i.e. savings from one time energy efficiency upgrades that will continue annually into the future. Total Cumulative Savings $3,073,213 Figure 2 Long term savings impact of implementing Energy Conservation Measures (ECMs). If no ECMs were implemented, the City would be spending $3.1 m dollars more in 2013 and continue to spend this every year. Figure 3 Energy Savings in Dollars,
7 Electric Consumption Reduction Goal ENERGY REDUCTION Goal: Reduce the City s annual electricity consumption by at least 1% per year (1.79 million kwh) using the city s 2008 Greenhouse Gas Inventory as the benchmark (except where other benchmarks may be an operational necessity) Goal: cumulative reduction = 8.95 million kwh Achievement: cumulative reduction = 26 million kwh or 5.2 million kwh per year Achievement Figure 4 Energy Reduction When comparing 2008 electricity usage to 2013 using measured and validated savings, there has been a total reduction of 20.9 million kwh. When savings is adjusted for weather and avoided electric consumption, the total measured and validated savings increases to 26 million kwh resulting in a 14.5% overall electricity reduction (orange line in Figure 4). Data excludes RRHA and Richmond Public Schools, which are not within the city s operational control. Figure 5 The annual reduction by department provides trending data to help each department understand electric consumption when compared to the City s 1% annual reduction goal. 7
8 USAGE AND COSTS Overall Utility Costs Utility costs and other energy expenditures are a significant, but necessary portion of business costs. Energy usage is also the primary contributor to Greenhouse Gas (GHG) Emissions. While it is not possible to eliminate these costs, it is possible to reduce them through changes in organizational culture and strategic investments in energy conservation. RVAgreen Government Teams work in each department to facilitate these changes. Going forward Natural Gas and Water will be included in departmental goals. Figure 7 - Overall energy expense - not adjusted for weather/avoided costs The chart shows historical expense for electric, natural gas, water and fleet fuel back to 2008 based on the best information currently available. This graph provides energy expense data to support expanding the City s goals to include natural gas and water. Adding these two energy expenses to energy efficiency and conservation measure will provide additional future savings opportunities. Figure 8 Provides energy usage (consumption) trending (unadjusted) for electric, natural gas, fleet fuel and water beginning in 2008 (benchmarked at 100%) compared to current usage levels in Natural gas consumption is increasing and reflects a business decision to move to a cheaper and cleaner energy choice. Electricity decreased until 2011 when the city added 69 new electric accounts and Brander Street Waste Water Treatment Plant upgrades began consuming electricity. Water increased until 2012 when the Sustainability Office began monitoring and controlling usage levels. Future conservation goals will include natural gas and water as a reflection of the city's desire to become a well managed city. 8
9 USAGE AND COSTS Figure 9 The average electric rate for the cost of electricity increased between 2010 and Between 2008 and 2013, Dominion increased electric rates to the city through the Virginia Energy Purchasing Governmental Association (VEPGA) by approximately 15%. However, the city absorbed this rate increase with minimal increase in electric expense through the city's energy conservation and efficiency initiatives. A good barometer on how efficient the city is using electricity is the average electric rate for each kwh consumed by the city. A decrease in the average electric rate price of 9.5% between 2012 and 2013 shows energy efficiency measures are beginning to reflect in the overall average electric rate. 9
10 REDUCTION GOAL FLEET Reduce the City s annual fuel consumption by at least 1% per year (140,948 gallons average) using the city s 2008 Greenhouse Gas Inventory as the benchmark (except where other benchmarks may be an operational necessity) cumulative reduction goal = 704,740 gallons Actual Achievement cumulative reduction = 1,291,510 gallons (258,302 gallons per year average) Figure 10 - Fleet Fuel Usage Figure 11 Fuel usage by Department Financial Savings Fleet fuel expense for 2013 was $3.3M. Comparing , actual fuel costs were reduced by $1 million. Each department will continue to find ways to reduce the overall expense to the city. Total avoided fuel costs total$2.2m between These savings were achieved through CNG conversion, fleet right-sizing, a more energy efficient fleet, and optimized usage. Gallons of fuel (including fuel equivalent gallons for CNG) increased in 2013 with Compressed Natural Gas (CNG) refuse haulers and CNG vans being included in the fleet fuel mix. CNG fuel equivalent gallons increases the gallons used because CNG vehicles use more fuel per mile than diesel or gas because of the lower BTU value of CNG vs. diesel. However cost savings significantly override the usage increases and the city still made the reduction in fuel usage goal. Even with the significant drop in oil prices in 2014, CNG vehicles in the long run will be competitive and more environmentally favorable. 10
11 FLEET MAJOR ACCOMPLISHMENTS FOR FLEET The City has aggressively pursued the conversion of its fleet to Compressed Natural Gas (CNG). The City s fleet totals approximately 1,902 vehicles. At the current rate of replacement to CNG fuel, approximately 800 vehicles will be replaced by In 2011, the city replaced 37 diesel garbage trucks with 25 new CNG garbage trucks saving over $577,000 in the last four years. As of 2014, a total of 76 CNG vehicles are now in the city s fleet The City s transportation sources are on average replacing approximately 74,000 Diesel Gallon Equivalents (DGE) of fuel per month which eliminates approximately 412 tons of greenhouse gas from the City s environment every month. 11
12 CHANGING THE ENERGY CULTURE Objective Implement a global approach to include employee participation, provide energy tools and resources to become more energy sustainable in City Government. Outcomes Comprehensive Energy Management Plan entitled Roadmap to Well-Managed Energy completed and implemented on January 1, EnergyCAP Energy Management Database implemented and currently tracking over 4 million pieces of electric, gas and water energy data. The system is being distributed to green team members. On-site training will follow. Training Leadership in Energy Efficient Design (LEED) provided to 166 city employees. Team RVAgreen Government training provided to 70 city employees. Team RVAgreen Government Departments Department of Public Utilities, Department of Public Works and Department of Parks and Recreation 27 employees are currently on the RVAgreen Government team VML Green Government Challenge Awards Platinum Certificate highest level Platinum Certificate highest level Platinum Certificate highest level Gold Certificate Silver Certificate OTHER AWARDS 2012 Best Green Organization 2010 Green Giant Award Sierra Club 2009 Certified Green Government Certificate Virginia Sustainability Building Network 12
13 METHODOLOGY Purpose Measure and validate each department s energy reduction performance benchmarked against 2008 energy consumption levels. Benchmark 2008 Greenhouse Gas Inventory. City of Richmond Government Operations excludes Richmond Public Schools and Richmond Redevelopment and Housing Authority (RRHA). Data Actual electrical energy consumption data provided by Dominion Virginia Power Sustainability Office parsed the data to establish the amount of energy consumed by each department Energy reduction performance goals were determined based on the Mayor s Green Government Order and presented to the departments. 13
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