The URL can be used to link to this page

Home My WebLink About2023-03-21 City Council Work Session PacketAgenda City Council Work Session City of Edina, Minnesota City Hall Community Room Tuesday, March 21, 2023 5:30 PM I.Call To Order II.Roll Call III.Time of Sale Energy Disclosure and Electrify Everything Campaign IV.Adjournment The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing ampli#cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: March 21, 2023 Agenda Item #: III. To:Mayor and City Council Item Type: Reports / Recommendation From:Grace Hancock, Sustainability Manager Item Activity: Subject:Time of Sale Energy Disclosure and Electrify Everything Campaign Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None; discussion only. INTRODUCTION: Sustainability Manager Grace Hancock will introduce City partner Center for Energy & Environment to present on two sustainability education topics - Time of Sale Energy Disclosure and the City's upcoming Electrify Everything campaign. ATTACHMENTS: Description Staff Report: Time of Sale Energy Disclosure and Electrify Everything Campaign Guest Presentation Electrify Everything MN Presentation March 21, 2023 Mayor and City Council Grace Hancock, Sustainability Manager Time of Sale Energy Disclosure and Electrify Everything Campaign Information / Background: At their March 21, 2023 work session, the City Council will receive two presentation from the Center for Energy & Environment, one related to the concept of Time of Sale Energy Disclosure (also called “Truth in Sale of Housing”), and one related to building electrification and Edina’s Electrify Everything education and awareness campaign. Time of Sale Energy Disclosure City Council approved a work plan initiative for the Energy & Environment Commission in 2023 to study and report on the options available to the City of Edina to pursue a Time of Sale Energy Disclosure (TOS) requirement in Edina. TOS refers to the requirement that homes listed for sale in a community must disclose their energy rating, usually found through conducting a home energy audit. This requirement results in more informed home buyers and can drive demand up for more efficient homes, resulting in higher efficient homes built and renovated. This lowers greenhouse gas emissions from the residential building sector, which in 2021 accounted for 25% of all greenhouse gas emissions in Edina. Currently, Minneapolis, St. Paul and Bloomington include a TOS requirement for home sales. This presentation from Center for Energy & Environment will inform Council on this topic, and establish the first opportunity for Council to ask questions and share input, which the EEC will incorporate into its study and report. The EEC expects to return to Council in June, 2023, with a report on their findings related to TOS applicability in Edina. Electrify Everything Campaign Edina’s 2021 Climate Action Plan aims to lower greenhouse gas emissions 45% by 2030. As of 2021, 30% of all greenhouse gas emissions in Edina come from natural gas burned on site in buildings. There is not a viable renewable source of natural gas that can be scaled to meet community needs, nor one that reduces the STAFF REPORT Page 2 amount of methane gas that is emitted as part of its use. Methane gas, the primary component of natural gas, is more than 25 times more potent than carbon dioxide at trapping heat in the atmosphere. Because of its potency, reducing its use is critical to keeping global temperature increases at or below 1.5 degrees C. Further, natural gas burned at home through home heating, water heating and cooking has adverse health effects including higher rates of respiratory illness like asthma, and increases the risk of home accidents like the explosion of natural gas equipment. The federal government has recognized that natural gas harms the environment and harms human health, and with the passage of its Inflation Reduction Act provides significant funding to residents to remove natural gas appliances from their homes and replace them with high-efficiency electric alternatives. Further, Edina – jointly with the cities of Eden Prairie and St. Louis Park – were awarded in early 2023 congressionally directed spending in the amount of $1,000,000 to fully weatherize and electrify 10 homes in the three communities, over the next three years, in order to demonstrate this technology’s efficacy in cold climates. These two federal funding opportunities, along with Edina’s Climate Action Fund, warrants a robust and extensive education and awareness campaign to ensure residents know how they can participate in these cost-sharing programs, to lower their energy costs and increase the health, safety and energy resilience of their home. From this imperative, the cities of Edina, Eden Prairie, St. Louis Park and Minneapolis have partnered to design and implement an Electrify Everything Campaign. This campaign includes a new website resource release, social and print media items to inform and empower residents ready to take action, and a series of workshops this spring and fall to give residents a hands-on opportunity to explore efficient electric technology, learn the basics and get their questions answered so they are ready to take the first step. Council will hear from the cities’ implementing partner, Center for Energy and Environment, about the basics of home electrification, and a high level overview of the Electrify Everything campaign. Council members will be able to ask questions and provide input on campaign implementation. Time of Sale Energy Disclosure Summary of policy and programming for the Edina City Council About Time of Sale (TOS) inspections TOS inspections: •Cover basic health and safety items in a house •Are required for sellers to complete before a home is listed for sale •Are public data Local cities with required TOS inspections Bloomington Maplewood Minneapolis New Hope Richfield Robbinsdale St. Louis Park Saint Paul South Saint Paul How energy disclosure is incorporated The traditional TOS inspection can be broadened to include a checklist of energy efficiency building assets. Basic health and safety items (traditional TOS inspection) + Energy efficiency items (energy disclosure) Time of Sale Energy Disclosure The goals of TOS energy disclosure Make energy efficiency improvements visible in the real estate transaction Create more potential to recoup investment in energy improvements at resale Speed the greening of the housing stock The Energy Disclosure Report Supportive programming Programming bridges the gap from paperwork to residents Consumer engagement •CEE has regularly sent mailers and conducted digital ad campaigns to increase awareness of energy disclosure. Realtor engagement •CEE teaches a regularly scheduled credited class on energy disclosure and energy in real estate. Bloomington’s path to implementing TOS energy disclosure Bloomington’s pathway started with an Energy Action Plan in 2018 Goals included a: •75% reduction in citywide energy-related greenhouse gas emissions •33% reduction in citywide natural gas-related greenhouse gas emissions Energy saving potential in residential buildings Residential buildings are a significant area to address and contribute: •30% of city’s greenhouse gas emissions •44% of the city’s natural gas use There are opportunities to work with single-family housing. Characteristics of the Bloomington building stock include: •Nearly 90% were built before energy code adoption. •Over 50% have inadequate insulation. Bloomington implemented their TOS Energy Disclosure policy in April 2022 •Over 1,000 homes have since received an energy disclosure report •We will analyze early results will be this summer Options for Edina 1: Require a full TOS inspection Sellers would be required to complete a traditional TOS inspection that includes the energy disclosure component. Minneapolis and Bloomington have this model 2: Only require a specific TOS energy inspection Two options to consider in Edina Sellers would only be required to complete an energy inspection prior to listing. No traditional TOS inspection would be required. Portland and Austin have this model Impact in Minneapolis Growing numbers of energy improvements Nearly 800 residences that have gone through energy disclosure are anticipated to have completed an energy improvement in 2022. Savings for TOS energy disclosure residents who completed energy improvements Current savings •$150,000 energy bill savings to residents •Over 950 metric ton reduction of CO2 equivalent Estimated savings through 2030 •Nearly $1,000,000 energy bill savings to residents •Over 5,800 metric ton reduction of CO2 equivalent Promising movement towards the direction we want to go 33%of all the rebated energy improvements completed in Minneapolis in 2021 were done by residences that had received an energy disclosure report. Thank You! ELECTRIFY EVERYTHING! City of Edina’s Climate Action commitments Climate Action Plan main goal: Edina will lower its greenhouse gas emissions 45% by 2030, from 2019 Relevant actions: •Improve total community wide residential, commercial, educational, and industrial building energy efficiency by 15% for electricity and 15% for Natural Gas by 2030. •Reduce share of population living in high energy poverty from 29% to 12% by 2030 •Achieve 10% residential and commercial and industrial building "fuel switching" from on-site fossil fuel combustion to less carbon intensive, or carbon neutral sources by 2030. Schedule of campaign outreach in Edina Earth Month 2023 Campaign announcement Clothing Swap (4/20) PW Open House (5/18) Vehicle Day (5/20) Edina Art Fair (6/2-3) Solar Power Hours (2) July 4 Parade (7/2) Edina Spring/Summer tabling May 3, 2023 Edina Spring Workshop Introduce Electrify Everything MN website Connect residents with federal and city resources to take action Social & Print Media blasts September, 2023 Edina Fall Workshop Promote federal tax credits and rebates Encourage campaign participants to take action Wrap campaign What is electrification? Electrification is replacing natural gas equipment and appliances with electrically-powered options. Examples: •Replacing a gas-fired hot water heater with a heat pump water heater •Replacing a central air conditioner with an air source heat pump About Electrify Everything The Electrify Everything program –led by St. Louis Park, Edina, Eden Prairie, and Minneapolis –aims to support the gradual electrification of 1–4 unit homes to promote resident health and climate sustainability. What is so exciting about electricity now? Why make the transition? Transitioning to electrically-powered equipment for your home has two main benefits: •Improved health and safety •Better for the climate Electricity sources can be cleaned, unlike gas Xcel Energy’s Carbon Free by 2050 plan aims to decarbonize electricity generation by 2050. There is currently no emissions-free gas alternative to natural gas. Future opportunities are unlikely to be cost- effective. Is the electric grid clean now? Electricity is not currently cleaner than gas. However, electricity is on track to be cleaner in the coming years and getting momentum now is critical. 1% 4% 5% 18% 22% 23% 27% Bio Mass Solar Hydro Coal Gas Wind Nuclear Current Edina grid makeup from 2021 Community Energy Report from Xcel Electricity rates are more stable over time Modern electric equipment will lower costs for some residents If you currently heat your home with electric resistance equipment, a high efficiency heat pump will save money. Energy efficiency comparison: •Electric resistance baseboard: 100% efficient •Heat pump: Up to 300% efficient More about heat pump technology In summer, heat pumps move heat outside to cool the home. In winter, heat pumps move heat inside to heat the home. How do I transition to electric equipment? The challenge-electrification can be confusing Common questions someone may have when considering electrification: •Where do I start? •What resources are available to help? •What are the equipment options? How do they compare to each other? •Who do I talk to for guidance? Which contractors should I talk to for quality work? This is where Electrify Everything comes in! The key areas to electrify in a single-family home Electrification projects in order of energy impact: •Weatherization (insulation and air sealing) •Heating •Water Heating •Clothes drying •Cooking Why are weatherization and heating at the top? Weatherization and heating equipment both address the main use of energy in Minnesotan homes: Heating. Weatherization and high efficiency electric heating mostly decarbonize your home Weatherization lowers the energy your home needs for heating (and cooling!) Using electrically-powered heating equipment (a heat pump) lets you take advantage of cleaner energy. These two projects together will make your home significantly more environmentally sustainable and efficient. Every resident can choose the path that works for them Each electrification project has different complexity and cost, and each home will be unique. Most people will take on one project at a time depending on their budget, motivations, and opportunities. The first step is to get information on your home A home energy audit will identify your home’s current equipment and opportunities to make cost-effective improvements. Home Energy Squad, provided by Xcel Energy and CenterPoint Energy and delivered by Center for Energy and Environment, is a low-cost service to help you understand your home’s current energy performance. Edina is currently offering FREE home audits for all residents. Prepare to electrify before equipment breaks Don’t wait until the equipment breaks! Consider beforehand: •What is a high efficiency electric option to replace my aging gas equipment? •What kind of performance or capacity does my home need? •What is the price range for a high efficiency electric option? •Which contractors would I ask for bids? What you can do today •Get a home energy audit •A home energy audit will identify the equipment and systems you have and potentially refer you to rebate-eligible contractors and resources •Make a plan •What equipment is near retirement? •Who are the recommended contractors for new equipment? •What are the resources available to help? •Talk to friends and neighbors about your plans! Visit our website to learn more and follow along ElectrifyEverythingMN.org •Upfront and operational cost ranges for equipment •Details of technology options •Notes on installation concerns and considerations •Links to resources and additional information Energy Advisor Contractor training •Goal is to establish 3-5 members of a Heat Pump Water Heater Installer Network •Training will be April 5th