1. Loudoun County Energy Plan Preliminary Findings Competitive Community of the Future Supervisor Andrea McGimsey Virginia Tech September 24, 2009

2. © Garforth International llc The Energy Debate Energy Independence Climate Protection Economic Prosperity

3. © Garforth International llc Case of Northern Virginia Greenhouse gas emissions are at approximately 20 metric tons/person of Greenhouse gases (2005) 500,000 new residents moving to Northern Virginia by 2020

4. © Garforth International llc The Causes/Sources of GHG Emissions

5. © Garforth International llc A Dilemma for Northern Virginia - High Voltage Transmission Lines

6. © Garforth International llc Loudoun County Energy Plan Focus on Overall Competitiveness County Wide Energy Strategy Competitiveness and sustainability Attracting high quality employment Develop new investments in “Green Jobs” 20 Year Roadmap with 30 year horizon Local/ Global CEP Team to develop CEP Federal Funding Background Department of Energy Block Grant Award County Energy Plan by Fall 2009 Baseline energy and emissions Specific short term “next steps” projects Broader policy recommendations Some immediate funds for initial projects Strive for Global Energy Excellence

7. © Garforth International llc Core Team Structure Creating Competitiveness for the Future Global Perspective – Local Expertise Active support from Dominion Power, Washington Gas and NOVEC

8. © Garforth International llc CEP Evolution of Benefits Final Plan Encompasses Multiple Dimensions Community Engagement Multiple effective initiatives No changes in policy needed Community Engagement Multiple effective initiatives No changes in policy needed Stand alone projects Fewer but larger initiatives Minor changes in policy Stand alone projects Fewer but larger initiatives Minor changes in policy Integrated solutions Neighbourhood sized projects Significant changes in policy Integrated solutions Neighbourhood sized projects Significant changes in policy Integrated policy and planning County wide norms New “business-as-usual” Integrated policy and planning County wide norms New “business-as-usual” Success Depends on All Base Case Future Case CEP Benefits

9. © Garforth International llc Insatiable Appetite for Energy Forecast to double by 2030 Source: IIASA / BP / EIA / Eurostat

10. © Garforth International llc Energy Productivity Differences How well does USA spend $1.3 Trillion? *Various US/EU Sources – 2007 sources Key to Competitiveness RegionPopulationGDPEnergy /Capita Energy /GDP USA4.6%25.9%20.5%100 EU7.5%31.1%15.9%4760 Japan1.9%8.1%4.6%5467 China20.0%6.1%15.0%17312 India17.1%2.0%4.7%6291 World100% 2281

11. © Garforth International llc Perfect Energy Storm Economic-Security-Environment Growing awareness – Growing Opportunity Volatile Prices Avail Availability Climate Change

12. © Garforth International llc Loudoun County Energy Vision (For Discussion) Simple - Measurable - Eternal “Loudoun County will always have reliable and affordable energy, be energy efficient and reduce greenhouse gases”

13. © Garforth International llc CEP Supports Economic Development (For Discussion) Energy Excellence Embedded in County Plans Loudoun County will always have reliable and affordable energy, be energy efficient and reduce greenhouse gases “Our Vision is to be an innovative, globally competitive economy known for its favorable business environment, exceptional quality of place and strong sense of community”  Recognized Center for Innovation  Prosperous Business Environment  High Quality of Place  Sound Fiscal Health  Favored Visitor Destination  World-class Energy Performance  Recognized Center for Innovation  Prosperous Business Environment  High Quality of Place  Sound Fiscal Health  Favored Visitor Destination  World-class Energy Performance

14. © Garforth International llc CEP Objectives (For Discussion) Loudoun County will have consistently lower energy costs relative to surrounding areas and inbound investors needs Loudoun County will be recognized as a location of choice for investment in part because of its innovative energy strategy Loudoun County will be recognized as a Regional-State- National model of competitive energy and climate management Loudoun County’s greenhouse gas emissions will be among the lowest in the world All major investments will visibly contribute to meeting the CEP goals Simple – Measurable - Eternal

15. © Garforth International llc CEP Objectives – 2030 Targets (For Discussion) Loudoun County will have consistently lower energy costs relative to surrounding areas and inbound investors needs Energy cost for homes and businesses will be at least 20% less than norms Loudoun County will be recognized as a location of choice for investment in part because of its innovative energy strategy At least 30% of all inbound investment will cite energy and climate advantages as a critical deciding factor Loudoun County will be recognized as a Regional-State-National role model of effective energy and climate management Loudoun will be regularly and positively cited for excellence in implementing sustained energy productivity gains Loudoun County’s greenhouse gas emissions will be among the lowest in the world Greenhouse gas per capita will be at least 50% less than the current level All major investments will visibly contribute to meeting the CEP goals Energy performance design targets will become a normal part of development planning and approval accompanied by transparency of performance in subsequent operation Simple – Measurable - Eternal

16. © Garforth International llc Loudoun Growth Challenge 69% Population & 116% Job Growth Energy for Building 75,000 new homes added to current 100,000 73 million square feet non-residential to current 69 million Renovation of existing homes and buildings Fuel for Transportation Mobility of 187,000 more people on already congested roads Commercial transport to support increased population Sources: (a) U.S. Census Bureau, Decennial Census 2000 ; (b) Loudoun County Government, Department of Management and Financial Services, October 2008 Reliable – Clean - Affordable Energy Services

17. © Garforth International llc 2007 Baseline – Total County and Per Capita Local Energy Use 319 Million Btu or 93.5 MWh for each resident

18. © Garforth International llc 2007 Baseline – Total County and Per Capita Local Energy Related Carbon Footprint 14.9 metric tons for each Resident

19. © Garforth International llc Framework for County Energy Plan Prioritized “Loading Order” Energy efficiency – If you don’t need it don’t use it Efficient existing and new homes and buildings Urban design for transport efficiency Local employment for commuting efficiency Heat Recovery – It it’s already there – use it Distributed combined heat and power Use existing “waste” heat Structure commercial sites to maximize “waste” heat use Renewable options – If it makes sense, go carbon free Renewable electricity – Photovoltaic, Wind, Run-of-river Hydro Renewable heat - Solar thermal, biomass, biogas Renewable heat and power – biomass, biogas, waste-to-energy Energy distribution – Invest where it makes sense Flexible distribution – electricity, gas, heating, cooling, …. Accepts multiple fuels and energy conversion technologies Optimize local / regional investment choices Integral to all County Plans

20. © Garforth International llc Efficiency of Homes and Buildings (For discussion) SectorBase CaseCEP Case? New Homes and Buildings State Codes 30% Above Code Efficiency by 2011 Plus 1% per year from 2011 Home and Building Renovation and Retrofits Some consumer actions 2.5% renovation rate 15% Efficiency Improvement estimated Engaged community wide consumer actions 2.5% renovation rate 25% Efficiency improvement expected by 2011 Plus 1% per year from 2011 Opportunities for Individual Actions Efficiency has the potential to meet all of the energy needs of the planned residential and non-residential growth from 2010 to 2040

21. © Garforth International llc Efficiency of Transportation (For discussion) SectorBase CaseCEP Case? Transportation Limited market for efficient vehicles Dominance individual vehicle Local employment reduces outbound commuting Transit hubs encourage ridership Denser Mixed-use walkable neighborhoods Market shift to efficient vehicles Encourage smaller vehicles More choices – Lower Costs County has the potential to meet all of the community’s transportation energy needs and to halve the per capita fuel consumption and greenhouse gas emissions from 2010 to 2040

22. © Garforth International llc Increase Efficiency of Electricity Generation (For Discussion) CHP doubles fuel efficiency Possible implementation approaches District energy for heating, hot water and cooling to higher density new developments Make district energy available to existing neighborhoods targeted for revitalization Evaluate benefits of distributed CHP on single developments larger than 100,000 square feet Cost and emission reductions The County has the potential to obtain a high percentage of its heat and electricity needs, as well as reduce peak electricity demand on the grid, through the implementation of clean distributed combined heat and power generation The County has the potential to obtain a high percentage of its heat and electricity needs, as well as reduce peak electricity demand on the grid, through the implementation of clean distributed Combined Heat and Power generation

23. © Garforth International llc Use of Economically Viable Renewable Energy (For Discussion) Technology costs dropping Possible implementation approaches: Deploy about 25 million square feet of Solar PV across the County by 2040. Add heat and power sources using various bio- fuels developed within the region Recover available landfill and sewage gas Flexible fuel options and emission reduction The County has the potential to supply at least 25% of it summer peak cooling demand and a significant portion of its winter heat base load from economically viable renewable sources

24. © Garforth International llc Monetizing Carbon Emissions Reductions (For Discussion) Possible price range: $10 to $150 / metric ton in next 30 years County could create 1M to 2M Credits in future years Possible implementation approaches Identify and track suitable projects at early stage Form an Energy and Environmental Trading Team Define value from environmental and energy assets Develop a priority list of tradable GHG emission reductions and other tradable environmental assets Sensible preparation to capture potential value The combination of efficiency, district energy, CHP, and renewable energy outlined in the CEP will create significant emissions reductions that have potential trading value

25. © Garforth International llc Role of Initial Scale Neighbourhood Projects CEP Goals Affordable energy Attract investments Improved reliability Reduce city costs Community outreach and education Institutional and governance changes Breakthrough efficiency 30 to 60% less energy 40 to 80% less GHG Will they be implemented? CEP Goals Affordable energy Attract investments Improved reliability Reduce city costs Community outreach and education Institutional and governance changes Breakthrough efficiency 30 to 60% less energy 40 to 80% less GHG Will they be implemented? County Energy Plan Efficient Building Scale Implementation Effective programmes Energy Star… LEED… Substantial resources Construction guides Efficient equipment Rebate & incentives Education Limited penetration < 5% of total new construction exceeds code Effective programmes Energy Star… LEED… Substantial resources Construction guides Efficient equipment Rebate & incentives Education Limited penetration < 5% of total new construction exceeds code CEP success needs scale Multiple benefits City, developer, utility… Potential game-changers High density urban villages Industrial estates Greenfield Smart Growth Sports & Rec Centres Transportation facilities Multiple in county “Connect the Dots” CEP success needs scale Multiple benefits City, developer, utility… Potential game-changers High density urban villages Industrial estates Greenfield Smart Growth Sports & Rec Centres Transportation facilities Multiple in county “Connect the Dots” Scale A Scale B Scale C Scale D Scale E Projects Closes the Gap County Accelerates Implementation

26. © Garforth International llc Mulitple Benefits of Integration (For Discussion using Local Examples) Integrated Energy Solution Increased Core densities Efficient construction District heat and cooling CHP and renewable sources Energy efficiency friendly parking Residents and Businesses Lifestyle of walkable, mixed-use neighborhood ~ 20% cheaper energy in buildings Reduced transportation costs Developer Competitive differentiation Construction costs less than 5% above Base Share of GHG credit value District Energy Service Provider 10 to 13% low risk return on investment Highly positive Net Present Value Regional Electric Utility 20% grid peak reduction Avoids future distribution investments Regional Gas Utility Consolidated wholesale customer Avoided costs of retail gas network Greenhouse gas reductions Homes and – 40% to 58% Buildings – 35% to 44% Transportation – 50% to 70% Commercially Focused Urban Village Transit Oriented Urban Village Example Only

27. © Garforth International llc Other Candidate Scale Projects (For Discussion) Retail Focused Urban Village Town homes and condos in Smart Growth concept Continuing Care Community Mixed use residential, social, commercial community Wide-range of services for later life Transit Commercial and Retail Neighborhood Higher density, close to airport Potential to link energy systems with IAD University and Community College Campuses Existing and potential new campuses Living example of next generation energy concepts Data Centers – New and Expansions Two major projects Sports, Retail and Commercial Mixed Use Neighborhood Business Park and Clean Power Plant Fully integrated commercial and data centers park Downtown Expansion District Stepwise extension of walkable downtown neighborhoods Conversion of Commercial Neighborhood to Mixed Use Revitalization of Existing Neighborhood Resort Complex Mixed Employment Park Assess each for integrated energy benefits

28. © Garforth International llc Benefits of Winning! Competitiveness - Sustainability - Flexible New Relationships – New Rules

29. © Garforth International llc Suggested DOE EECBG Projects (For Discussion) ProjectTaskEst. $Benefit Education & Outreach – Residential (Home Perf. Energy Star) Owner orientation on energy potential Up to $250K Matches Accelerated retrofits Enhanced contractor skills Efficiency gains Education and Outreach – Business (Green Business Challenge) Management orientation on energy potential Up to $250K Matches Peer proliferation of best practices Enhanced team skills Efficiency gains Education and Outreach – Transportation Fleet Management orientation on energy potential Up to $250K Matches Peer proliferation of best practices Enhanced fleet manager skills Loudoun Public Schools or County Property Retrofit integrated energy solution Up to $1M Grant Matches Lower costs Teaching platform Community example of solution Selected Scale Project(s) Detailed Integrated Energy Master Plans Up to $250K Matches Community example of integrated planning and benefits for mixed-use Scale Projects Leverage private funds Data Center Detailed Integrated Energy Master Plan Up to $250K Matches Business example of IEMP for Green Data Center for new investors Leverage private funds in implementation

30. Thank you! Supervisor Andrea McGimsey Loudoun County, VA 703-777-0105 Andrea.McGimsey@loudoun.gov

31. © Garforth International llc Copenhagen, Denmark Long-Term Community Energy Plan 1973 highlights energy vulnerability Efficiency Global best practice Pioneered EP labelling Innovation to raise bar District heating / cooling Systematic expansion Energy zoning River/ocean cooling Fuel flexibility Multi-fuel cogeneration Coal, oil, gas, biomass Waste-to-Energy Wind generation Solar Transport Urban design for bike/walking Efficient trams/trains World class “Green” businesses Energy engineering and services Wind energy District energy Sustainable architecture and construction Voted 2 nd Most Livable City in the World

32. © Garforth International llc Mannheim Community and Regional Energy Benchmark Population 350 thousand Home to major industries Energy Efficiency Building efficiency Industrial efficiency Higher living density Mixed use – Live / Work /Play Multi-modal Transport Multi-Utility Energy Distribution Electricity District heating and cooling Industrial Steam Natural gas Multiple energy sources Regional Gas/Electric Grids Power generation heat recovery Bio-mass Waste-to-Energy Wind/solar/geothermal Public-Private Energy Services Low cost, clean, technically flexible