Tag: energy

No More Gas Fireplaces?

Lakewood City Council Member Paula Nystrom and Jacob LaBure proposed banning gas fireplaces on October, 14, 2024. On the heels of two other proposals that night for increased sustainability measures, most Councilors urged for a deeper discussion of the topic at the council’s annual retreat. Councilor Rebekah Stewart was the only other “yes” vote on moving this ban forward. This discussion will be included again later in the zoning update tentatively scheduled for May, 2025

The city is already moving forward to fund electrification efforts, which include eliminating all gas appliances. As recommended by Lakewood’s Sustainability Committee, funding incentives would be provided for residents to voluntarily change their appliances, after which, mandates would be needed for everyone else. When asked whether Council is advocating for electrification, then-Councilor Wendi Strom responded that Lakewood was just in the research phase.

According to the 2025 budget Q&A, Lakewood has moved beyond research without a Council policy vote and without further public discussion. Lakewood will be a part of five different programs to remove gas appliances in residential homes starting in 2025.

The theory is that since grants are “free money”, no one could object and furthermore, the city’s Sustainability Plan calls for decreasing greenhouse gas emissions 20% below 2007 levels by 2025 so no public discussion is needed. As Councilors LaBure and Nystrom point out, Lakewood is behind its goals. To assist in reaching those goals, all gas appliances will have to be replaced with arguably more expensive and less efficient electric appliances.

The goal does not address how to power the new electric infrastructure given the grid cannot handle the current load. It also does not address the legal problems caused by similar demands to the commercial property world. There is no word on how to reverse or stop Lakewood’s policy of encouraging high-density growth, which led to more people with more gas appliances over the past decade.

Funding programs according to budget Q&A:

  • Starting in 2025, Lakewood will use funds through DRCOG from the EPA Climate Pollution Reduction grant. Lakewood will “offer financial incentives for residential efficiency and electrification projects (heat pumps, electric cooktops, etc) and invests in more local workforce development. The program focuses on supporting low-income and disadvantaged communities and will reduce 149 million tons of carbon emissions by 2050. The funds have to be spent over the next 5 years.”
  • Xcel Energy’s Clean Heat Plan (still needs to be approved by the Public Utilities Commission) will direct $440 million to electrification and efficiency measures and reduce natural gas use. Designed to support hundreds of thousands of households starting in 2025.
  • Colorado Energy Office is expected to launch a $140 million Home Energy Rebate Program for low to moderate income households and building owners in early 2025 from the Department of Energy. This is part of the Inflation Reduction Act. The funds will be used for home electrification and appliance rebates and efficiency measures.
  • Colorado Energy Office received $20 million to support efficiency and electrification improvements for buildings larger than 50,000 SF. Expected in 2025.
  • Xcel also has a Transportation Electrification Plan and Demand-side Management plan that is expected to be adopted later this year and offer financial incentives starting in 2025. Total funding for that program is unknown at this time. 

Scorecard: Banning Gas Fireplaces

Strom: Nay

Shahrezaei: Nay

Sinks: Nay

Mayott-Guerrero: Nay

Cruz: Nay

Stewart: Aye

Low: Nay

Olver: Nay

Rein: Nay

LaBure: Absent

Nystrom: Aye

Denver and Colorado are being sued for rules on climate goals and greenhouse gas emission standards that the City of Lakewood is considering adopting. Denver and Colorado both approved a building performance standard that would force builders, landlords and homeowners to meet emission goals through green remodeling and electric appliance retrofits. Lakewood also has building performance standards through its Article 13. Lakewood takes four times as many climate mitigation and adoption steps as other cities, leading to Lakewood being named a leader in climate action. Lakewood is one of only 119 cities around globe to take steps like building standards. Rule 28 in Denver and Colorado goes even further by requiring “benchmarking” performance since 2021. Based on building performance, it is now time for required cuts, leading to a lawsuit by the Colorado Apartment Association, the Colorado Hotel and Lodging Association and others. The cuts will require costly remodeling. In August of 2023, Lakewood staff recommended the city join Denver and Colorado in the benchmarking program, described below, that only about 30 cities throughout the nation have adopted. However, these policies are not market-tested and they are extreme enough that Denver and Colorado are being sued. If Lakewood leadership adopts the additional staff recommendations, or agrees to recommendations from the LAC on Green Remodeling, the city may find also find itself in the news and in legal jeopardy.

Is Being a Leader a Good Thing?

In a “you say potato…” moment, the lawsuit in Denver shows that one person’s leader is another person’s extremist. Not everyone agrees that going where these climate policies lead is worth it. While the debate rages over climate science, policy makers rarely point out that there are two sides to the story, in order to promote their narrative. Climate policies have real-world economic consequences that could make housing even more expensive.

Lakewood already has an Enhanced Development Menu that requires new development to meets a point scheme, based on the Menu options, that achieves climate goals of rolling back emissions in compliance with state goals. Development is thereby prohibited unless it meets climate goals. The policies Lakewood is currently advocating align with Colorado’s Rule 28 that monitors energy usage for buildings not already covered by the state. This process is called benchmarking, which Lakewood staff describe as “the regular monitoring and reporting of an individual building’s energy consumption to track changes over time and monitor progress towards increased efficiency and decreased GHG emissions.”

While the process may sound routine and innocuous, this program must be put in place before the government can have access to private energy-use data.

Once in place, the data can be used to set the bar and start imposing usage limits, incentives, conversions, etc. Lakewood is specifically talking about the switch from gas-powered to electrical tools and appliances.

Excel energy use from customer bills. This monitoring could be shared with the city for benchmarking.

The Colorado and Denver rules currently only apply to commercial and multi-family units but the policy puts them to the left of cities like Boulder, as seen in the map below. In fact, Denver is second in the nation only to San Francisco. Being on the forefront of the climate change debate gets Denver in the news but it also attracts lawsuits. And Lakewood is recommending these same actions.

Lakewood is taking things a step further and seeking similar solutions for residential homes, the details of which can be found at the city website, with more from the Lakewood Informer news site.

Back in August, Lakewood staff were enthusiastic about Lakewood becoming another purple dot on the map below, which would show their leader/extremist tendencies, depending on your viewpoint. Will that change once the lawsuits start?

From Institute for Market Transformation

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