ANNUAL ENERGY REPORT 2014

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EXECUTIVE SUMMARY

SAVINGS

ENERGY REDUCTION

USAGE AND COSTS

FLEET

CHANGING THE ENERGY CULTURE

METHODOLOGY

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TABLE OF CONTENTS

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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 govern-

ment 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

2010-2013 cumulative savings $3.1 million dollars

Continuous Annual savings* $1.1 million dollars

Electricity Consumption Reduction

2008-2013 cumulative electricity reduction Goal in KWh 9 million kWh or equivalent of 1% per year

2008-2013 (adjusted) cumulative electricity reduction accomplishment in kWh 26 million kWh or equivalent of 2.9% annual reduction

Electricity Expense

2008 total electricity expense $14,146,090

2013 (adjusted) total electricity expense $14,158,996

Increase in expenses since 2008 $12,906

*savings from one time energy efficiency upgrades that will continue annually into the future

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EXECUTIVE SUMMARY

Energy Management Excellence:

City government is constantly growing and changing to meet the needs of our residents and customers. The ultimate goal of an energy manage-

ment 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 2008-2013, 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 2008-2013:

• 69 new electricity accounts added

• 4th 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

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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 $0.0846 compared the to the city's average electric rate $0.808. This shows the City of Richmond is more energy efficient in the use of elec-

tricity than the average local government in Virginia.

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SAVINGS Verified savings from 2010-2013 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.

Figure 2— Long term savings impact of implementing Energy Conservation

Measures (ECMs). If no ECMs were implemented, the City would be spend-

ing $3.1 m dollars more in 2013 and continue to spend this every year.

Figure 3— Energy Savings in Dollars, 2010-2013

Total Cumulative Savings $3,073,213

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ENERGY REDUCTION Electric Consumption Reduction Goal

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: 2008-2013 cumulative reduction = 8.95 million kWh

Achievement: 2008-2013 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 con-sumption, 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.

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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 invest-ments 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 pro-

vides energy expense data to support expanding the City’s goals to include natu-

ral 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%) com-

pared to current usage levels in 2013. Natural gas consumption is increasing and

reflects a business decision to move to a cheaper and cleaner energy choice. Elec-

tricity decreased until 2011 when the city added 69 new electric accounts and

Brander Street Waste Water Treatment Plant upgrades began consuming electric-

ity. 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.

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USAGE AND COSTS

Figure 9

The average electric rate for the cost of electricity increased between 2010 and 2012. 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 ab-sorbed this rate increase with minimal increase in electric expense through the city's energy conservation and efficiency initiatives. A good ba-rometer 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.

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FLEET

REDUCTION GOAL

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)

2008-2013 cumulative reduction goal = 704,740 gallons Actual Achievement

2008-2013 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 2008-2013, 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 2008-2013. 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 includ-

ed 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.

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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 re-

placed by 2020.

• 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.

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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, 2012.

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

2014- Platinum Certificate – highest level

2013- Platinum Certificate – highest level

2012- Platinum Certificate – highest level

2011- Gold Certificate

2010- Silver Certificate

OTHER AWARDS

2012 Best Green Organization

2010 Green Giant Award – Sierra Club

2009 Certified Green Government Certificate –Virginia Sustainability Building Network

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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.