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Overcoming Barriers to Carbon Neutrality

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Overcoming Barriers to Carbon Neutrality ` Overcoming Barriers to Carbon Neutrality A Report of the Carbon Neutrality Finance and Management Task Force August 1, 2017 CONTENTS EXECUTIVE SUMMARY ............................................................................................................................... I Recommendations ................................................................................................................................ iii Funding and Financing ........................................................................................................................ iv Energy Efficiency and Conservation ................................................................................................... iv New Buildings ....................................................................................................................................... v Communication and Change Management ......................................................................................... vi Call to Action ....................................................................................................................................... vi For More Information ........................................................................................................................... vi 1. ORIGINS OF THIS REPORT .................................................................................................................... 1 Climate Change ........................................................................................................................................ 1 The Carbon Neutrality Initiative: UC’s Commitment to Lead .................................................................... 1 The Task Force: Purpose and Process .................................................................................................... 2 Engaging Stakeholders in the Process ................................................................................................ 3 Debating the Trade-offs ........................................................................................................................ 4 Why 2025, and How Much Will It Cost? ................................................................................................... 4 2. CONTEXT AND ISSUES FOR DECARBONIZATION .............................................................................. 6 Historical Utilities Funding and Cost Trends ............................................................................................. 6 Progress to Date ....................................................................................................................................... 6 Statewide Energy Partnership .............................................................................................................. 6 Wholesale Power Program ................................................................................................................... 7 On-site Renewable Energy Generation ................................................................................................ 8 Cap-and-Trade ..................................................................................................................................... 9 Green Buildings .................................................................................................................................. 10 Vehicle Fleet Emissions ..................................................................................................................... 10 Central Heating and Cooling Plants ................................................................................................... 10 Biomethane Program .......................................................................................................................... 11 Natural Gas Exit Strategies ................................................................................................................ 11 The Question of Offsets ...................................................................................................................... 12 The Need to Accelerate Progress .......................................................................................................... 12 3. RECOMMENDATIONS ........................................................................................................................... 16 Funding and Financing ........................................................................................................................... 16 FF1. Integrate Purchased Utilities and Carbon Management as a Stand-Alone Financial Unit ....... 17 FF2. Implement Internal Carbon Charges .......................................................................................... 18 Energy Efficiency and Conservation ....................................................................................................... 20 EE1. Develop a Comprehensive Funding Plan for Energy Efficiency Projects .................................. 21 EE2. Improve Staffing for Energy Efficiency Programs ...................................................................... 21 EE3. Track Campus and Medical Center Energy Efficiency Goals ................................................... 22 EE4. Create Systemwide Collaborative Projects ............................................................................... 23 New Buildings ......................................................................................................................................... 23 NB1. Prioritize Net-Zero Carbon for New Buildings and All-Electric Designs for New Housing ........ 24 NB2. Strengthen Energy Performance Standards and Incentivize Low-Energy Design ................... 25 NB3. Base Capital Project Design Decisions on Life Cycle Cost Analysis (LCCA) ........................... 26 Communication and Change Management ............................................................................................ 27 CM1. Position Carbon Neutrality as a Campus and Systemwide Priority .......................................... 27 CM2. Emphasize the Connection to the UC Mission ......................................................................... 27 CM3. Engage the Support of the UC Regents ................................................................................... 29 CM4. Continue Support for Faculty Engagement in the Initiative ...................................................... 29 CM5. Recognize and Facilitate Students in Advancing the Carbon Neutrality Initiative .................... 30 CM6. Continue Programs that Reward Energy Savings and Other Behaviors that Reduce or Eliminate Carbon ................................................................................................................... 31 Energy Supplies ...................................................................................................................................... 31 ES1. Factor Energy Planning into Campus-Specific Climate Action Plans ....................................... 32 ES2. Continue and Expand Existing Energy Supply Programs ......................................................... 32 ES3. Develop A Coordinated Approach to Natural Gas Purchases .................................................. 33 Medical Center-Specific Recommendations........................................................................................... 33 MC1. Perform Cost-Benefit Analyses of Scenarios for Achieving Carbon Neutrality ........................ 34 4. ROLLING OUT THE REPORT ............................................................................................................... 35 5. CALL TO ACTION ................................................................................................................................... 37 APPENDIX I: ADDITIONAL RECOMMENDATIONS .................................................................................. 37 Energy Efficiency and Conservation ....................................................................................................... 37 EE5. Implement Energy Saving Performance Contracting ................................................................ 37 New Buildings ......................................................................................................................................... 37 NB4. Modernize Systemwide Space Databases and Publish Space Use ......................................... 37 NB5. Create Systemwide Tools to Support Low-Carbon Construction .............................................. 38 NB6. Train Staff and Building Occupants in High-Efficiency Systems Design and Maintenance ...... 38 Communication and Change Management ............................................................................................ 39 CM7. Consider How Scope 3 Commuter Emissions Reductions Can Help Engage the Campus Community ............................................................................................................................ 39 Medical Center-Specific Recommendations........................................................................................... 39 MC2. Support Blanket OSHPD Approvals for Standardized Carbon Abatement Projects ............... 40 MC3. Build Stronger Partnerships with Kaiser Permanente and Other Peers ................................... 40 MC4. Fund Curriculum Workshops to Engage Faculty and Students at Each Medical Center ......... 41 MC5. Improve Healthcare Value As a Way to Reduce
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