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HomeMy WebLinkAbout2024-02-20 Agenda and Supporting Documentation Town Council Afternoon Meeting1.Call to Order 2.Presentation/Discussion 2.1 Holy Cross Energy Journey to 100%45 min. Listen to presentation and provide feedback. Presenter(s): Kristen Bertuglia, Director of Environmental Sustainability and Dr. Bryan Hannegan, President and CEO of Holy Cross Energy Background: Holy Cross Energy is providing an update on their ambitions to become 100% reliant on carbon-free power by 2030, and carbon-neutral or better across the enterprise by 2035--without sacrificing affordability, safety, or reliability for the sake of sustainability. 2.2 Vail Community Geothermal District Project Update 30 min. Listen to presentation and ask questions. Presenter(s): Kristen Bertuglia, Director of Environmental Sustainability and Cameron Millard, Energy Efficiency Coordinator Background: Staff have been investigating clean energy alternatives to natural gas heating and have made significant progress on developing a geothermal heating district concept incorporating ground source and waste heat thermal sources. 2.3 West Vail Commercial Update 30 min. Staff will present an overview of Chapter 2, run through each of the three design scenarios, and ask for feedback from Council during the presentation. Presenter(s): Matt Gennett, Director of Community VAIL TOWN COUNCIL MEETING Afternoon Session Agenda Town Council Chambers and virtually by Zoom. Zoom meeting link: https://vail.zoom.us/webinar/register/WN_Sm9GeJyMToaxyREiBPU1Sw 2:35 PM, February 20, 2024 Notes: Times of items are approximate, subject to change, and cannot be relied upon to determine what time Council will consider an item. 2024.02.20 Hannegan HCE Town of Vail.pptx Memo to_ Town Council - Vail Community Geothermal Project Update.pdf Presentation - Vail Community Geothermal District Project.pdf HCE Letter of Support for Town of Vail Geothermal Thermal District.pdf TOV CEO Grant Support ERWSD SR.pdf Report - The Heat Beneath Our Feet.pdf Vail CO Borehole and TC Test Report.pdf Report - Ground source heat pumps Opportunities and challenges.pdf 1 Development Background: The West Vail Master Plan, adopted by Council in November 2021, includes three scenarios for the future the redevelopment of the commercial area in West Vail. These scenarios offer three realistic design models for developing and enhancing West Vail Center. 2.4 Year End Investment Report 15 min. Listen to presentation. Presenter(s): Carlie Smith, Director of Finance Background: Section 2-2-8 of the Town Code requires an annual presentation of the town's investment report, which is also provided as a written report each quarter. This agenda item is a presentation of the town's investment report as of December 31, 2023. 2.5 2024 CSE 2nd Cycle Special Event Sponsorship Allocations 20 min. Listen to presentation and provide feedback. Presenter(s): Jeremy Gross, Special Event Coordinator Background: The 2nd cycle of event sponsorship review has been completed by the CSE and staff and the sponsorship recommendations are being presented to Council. The presentation provides Town Council the opportunity to review the proposed sponsorship amounts, ask questions, and begins the call up period to further discuss or change allocations. The call up period will expire at the March 19, 2024 meeting. 3.DRB/PEC (5 min.) 3.1 DRB/PEC Update 4.Information Update 4.1 January 8, 2024 AIPP Meeting Minutes 4.2 January 19, 2024 VLHA Meeting Minutes 4.3 January 23, 2024 VLHA Meeting Minutes 4.4 EHU Compliance Update Council Memo WVMP Phase 2.pdf West Vail.pdf 240220 2023 YE Investments.pdf 231231 Investment Report.pdf Council Memo - 2024 2nd Cycle Special Event Sponsorship Allocations - 02-20-2024.pdf DRB Results 2-7-24.pdf PEC Results 2-12-24.pdf January 8, 2024 Minutes.pdf 2024-01-19 VLHA Minutes.pdf 2024-01-23 VLHA Minutes.pdf EHU Compliance Status Update Memo 02062024.pdf 2 4.5 2023 2nd Quarter Investment Report 4.6 2023 3rd Quarter Investment Report 5.Matters from Mayor, Council, Town Manager and Committee Reports (20 min.) 5.1 Town Manager Report 5.2 Council Matters and Status Update 6.Executive Session (30 min.) Executive Session pursuant to: C.R.S. §24-6-402(4)(a) to consider the purchase, acquisition, lease, transfer or sale of any real, personal or other property interest, §24-6-402(4)(e) to determine positions relative to matters that may be subject to negotiations, develop a strategy for negotiations and instruct negotiators and on the topic of potential real property sale and acquisitions by the Town. 7.Recess 5:50pm (estimate) 2023 Q2 Investment Report.pdf 2023 Q3 Investment Report.pdf TM Update 021624.docx 240220 Matters.docx 2023 Town of Vail Social Media Year in Review FINAL (1).pdf Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vailgov.com. All town council meetings will be streamed live by High Five Access Media and available for public viewing as the meeting is happening. The meeting videos are also posted to High Five Access Media website the week following meeting day, www.highfivemedia.org. Please call 970-479-2136 for additional information. Sign language interpretation is available upon request with 48 hour notification dial 711. 3 AGENDA ITEM NO. 2.1 Item Cover Page DATE:February 20, 2024 TIME:45 min. SUBMITTED BY:Kristen Bertuglia, Environmental Sustainability ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:Holy Cross Energy Journey to 100% SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Kristen Bertuglia, Director of Environmental Sustainability and Dr. Bryan Hannegan, President and CEO of Holy Cross Energy VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 2024.02.20 Hannegan HCE Town of Vail.pptx 4 Your community. Your co-op. Your choice.Your community. Your co-op. Your choice. HCE’s Clean Energy Journey (so far) Bryan Hannegan, President and CEO 5 About Holy Cross Energy 275 MW Peak Demand 3,100 Miles Distribution Lines 120 Miles Transmission Lines 170 Employees Founded in 1939, we serve more than 46,000 members in scenic Western Colorado with: In 2023, 50% of our power supply came from wind, solar, biomass and hydroelectric power, as well as coal mine methane recovery. Holy Cross Energy (HCE) provides safe, reliable, affordable and sustainable energy and services that improve the quality of life for our members and their communities. 2 6 Our Journey to 100% Clean Energy Cleaner Wholesale Power Local Clean Energy Resources Distributed Energy Resources Smart Electrification Continue our existing agreements for energy from local biomass, hydro, and solar projects Incorporate new, clean, dispatchable resources into HCE’s power supply mix. Support installation of at least 4 MW per year of new rooftop solar systems. Encourage the expanded use of electricity for transportation, building heating and cooling, and industrial processes. Energy Efficiency Obtain an additional 0.25% per year in reduction of electric sales from existing uses. These actions will allow HCE to achieve its vision of: •Carbon-neutral or better across the enterprise by 2035 in a way that does not sacrifice affordability, safety, or reliability for the sake of sustainability. •100% carbon-free power supply by 2030 3 7 Our Progress Thus Far New Resources Developed or Under Contract: Eastern Colorado •150 MW wind •30 MW solar HCE Service Area •5 MW solar •4.5 MW hydro •4.5 MW/15 MWh solar+storage •10 MW/20 MWh solar+storage •10 MW/20 MWh solar+storage 4 8 •Significant new forms of supply variability (and financial risk) •In general: •oversupply during midday solar production peaks •oversupply during low demand overnight hours •undersupply during peak demand hours (mornings and afternoons) •Role of distribution utility becomes one of balancing •flex demand to meet available supply (+ stored energy) •opportunity for DERs Implications of High Renewables 5 9 Clean Power Systems Need Flexibility 10 Flexible Demand Supports the Grid Pre-cool/heat buildings and charge EVs when wind/solar plentiful Allow building to “ride through” peak Discharge from batteries to address PM solar ramp (incl. V2G) Source: RMI Distributed Energy Resources (DERs) can provide important services to help balance supply and demand 6 11 Building Decarbonization is Key Source: Building Decarbonization Network, 2024 12 Thermal Networks Fit a Future Need When renewable electricity is in excess, use it to heat up fluid in the thermal loop to provide energy services When renewable electricity is short, use the thermal network to reduce demand on the electricity supply 13 Join us on our Clean Energy Journey For more information – www.holycross.com Follow us on X & Facebook Bryan Hannegan President and Chief Executive Officer LinkedIn - bhannegan 14 AGENDA ITEM NO. 2.2 Item Cover Page DATE:February 20, 2024 TIME:30 min. SUBMITTED BY:Cameron Millard, Environmental Sustainability ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:Vail Community Geothermal District Project Update SUGGESTED ACTION:Listen to presentation and ask questions. PRESENTER(S):Kristen Bertuglia, Director of Environmental Sustainability and Cameron Millard, Energy Efficiency Coordinator VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Memo to_ Town Council - Vail Community Geothermal Project Update.pdf Presentation - Vail Community Geothermal District Project.pdf HCE Letter of Support for Town of Vail Geothermal Thermal District.pdf TOV CEO Grant Support ERWSD SR.pdf Report - The Heat Beneath Our Feet.pdf Vail CO Borehole and TC Test Report.pdf Report - Ground source heat pumps Opportunities and challenges.pdf 15 To: Town Council From: Department of Environmental Sustainability Date: February 20th, 2024 Subject: Geothermal Update I. Purpose The purpose of this memo is to update Vail Town Council regarding the potential for geothermal technologies to increase efficiency and decarbonize municipal operations, including snowmelt and buildings, in accordance with Vail’s environmental goals. II. Background Clean energy solutions are needed to help the Town of Vail meet its adopted goals of reducing greenhouse gas emissions by 50% by 2030 and 80% by 2050. Reducing emissions have been identified as goals in the following: • 2009 Environmental Sustainability Strategic Plan • 2020 Update to the Climate Action Plan for the Eagle County Communities • 2021-2023 Town Council Action Plans • 2023 Vail Stewardship Roadmap Town of Vail Emissions While the Town of Vail does purchase renewable electricity through participation in Holy Cross Energy’s Pure Program, a majority of emissions from municipal operations come from natural gas use, followed by transportation (Figure 1). Snowmelt accounts for approximately 80% of the town’s natural gas use and is the highest source of emissions attributable to town operations. With direction from Council, staff are investigating options to reduce natural gas use for snow-melting and heating buildings. An electric resistance snowmelt boiler was installed in 2022 which further reduced emissions, however more efficient methods of heating that utilize geothermal energy with a combination of “waste heat” (a by-product of combustion, or producing energy, that isn’t used, and is simply released into the atmosphere ) would not only save the town money in utility bills, but also could cut emissions by roughly 90%, and reduce impacts on the ecosystem. 16 Town of Vail Page 2 Figure 1. Town of Vail Municipal Operations Greenhouse Gas Emissions (Carbon Dioxide (CO2 Equivalent)) Geothermal Technology in Action Geothermal technology is one such source of heating that can offer incredibly low -cost, reliable, and clean energy. Geothermal energy is of particular interest to Colorado under the leadership of Governor Polis and The Heat Beneath Our Feet initiative. In a recent report, Governor Polis says that geothermal energy is a “domestic energy source, has a small surface footprint, close to zero carbon and other emissions, making it a clean and sustainable energy resource, providing stability to the electric grid.” Town of Vail staff visited an inspiring example of geothermal resources in use at Colorado Mesa University in Grand Junction. The campus utilizes a geothermal system called an Ambient Temperature Loop (ATL) to heat and cool 1.3 million square feet of building space. By comparison, Vail’s overall snowmelt system is over 593,000, sq ft or 13.5 acres, or 12 football fields. Of that, over 350,000 sq ft is town-operated. Critical to this system is the use of waste heat to augment the geothermal resource. Similar technology has already saved the university tens of millions of dollars compared to conventional heating systems. The New York Times detailed efforts around the country to convert campus heat plants to geothermal, including Princeton University (To Slash Carbon, Colleges are Digging Really Deep). Regionally, Eagle, Pitkin and Routt Counties, and the Town of Carbondale are at various stages of implementing geothermal technology for heating and potentially for snow-melting. Geothermal Potential in Vail To determine the viability of clean energy technology in Vail, the town has contracted with The Grey Edge Group (TGEG), a group of internationally recognized geothermal experts. The Grey Edge Group found that the energy demand for snowmelt is a good fit with the heating and storage capacity of the geothermal and waste-heat resources available in Vail. TGEG determined that the town’s snowmelt system could reduce 17 Town of Vail Page 3 emissions by 90% with a geothermal system built to match 50% of the demand. The rest of the load could be handled with electricity from clean energy sources. Additionally, the team identified a number of potential waste heat collection sites that could be used to enhance a potential geothermal exchange system. Most interestingly, the Eagle River Water and Sanitation District (ERWSD) treatment plant has a great deal of waste heat and a regulatory imperative to lower the temperature of treated wastewater. Siri Roman, the General Manager at ERWSD, has offered support for a project that could utilize waste heat from the treatment plant. The Town of Vail of course shares a great interest in maintaining low temperatures in Gore Creek, as each summer gets hotter, aquatic life in the Creek is threatened, and could hinder the town’s efforts to be removed from the State of Colorado’s 303(d) li st of impaired waterways. Table 1 shows the potential of geothermal to be nearly as cost-effective as the most inexpensive natural gas. The operating cost of a geothermal heat pump (HP) is expected to be $4.14 per 1 million BTUs of output, compared to natural gas at $4.12 per 1 million BTUs. The geothermal option would be 100% emissions free and hedge against price volatility with natural gas. For illustrative purposes, the Town of Vail’s portion of the snowmelt system uses the equivalent of over 29 million kwh, and costs as much as $750,000 annually. If the town were to build renewable energy capacity to cover the snowmelt’s load it would need over 70 acres of solar panels. To further understand the scope of such a system, the town contracted with TGEG again for a more in-depth feasibility study of the geohydrology of the town to better quantify the geothermal potential. In late November of 2023, a 520-foot borehole was drilled in Ford Park. The purpose of the test borehole was to note variations in geology and drilling conditions as well as to collect deep earth temperature and thermal conductivity data. The engineering team presented a report – Vail CO Borehole and TC Test Report – which indicated that the site is exceptionally well-suited for a ground source heat exchange system. A recent article in the Vail Daily described the project in more detail (Is Geothermal Energy a Viable Option to Decarbonize Vail’s Snowmelt System?). In order to accurately design and cost a networked geothermal system, the consulting team has recommended a commissioning of the current operation of the snowmelt system to make it more efficient and “right-size” it for the design of a clean energy system. 18 Town of Vail Page 4 Federal, State, and Regional Interest in Geothermal Technologies Broad interest and incentives for advancing geothermal projects exist on the federal level through Inflation Reduction Act (IRA) and the Department of Energy, on the state level through the Colorado Energy Office and Governor’s Office, and locally through Holy Cross Energy, the Eagle River Water and Sanitation District, and communities in the Mountain West. On February 14th, 2024, given the momentum with several projects underway, HCE hosted a regional meeting to discuss commons goals and interest in geothermal districts among communities and geothermal technical experts. HCE President and Chief Executive Officer Dr. Bryan Hannegan described geothermal as a key technology for getting more renewable energy onto the grid as it provides flexible demand on electrical energy systems. In essence, a geothermal system can function as a giant battery in which to store energy, which greatly reduces peak demand and challenges with over-supply of renewables when they’re not needed, which will be critical as Holy Cross approaches 80-90% renewable energy on the grid within the year. III. Next Steps The next steps to develop a project include: 1. Initial Scoping a. Baseload analysis (system load profile) b. Characterize system and identify potential opportunities 2. Geological Studies and Analysis a. Drilling test borehole b. Thermal Conductivity Test c. Hydro-geological resource survey 3. Retro-Commissioning and Verification a. Study snowmelt existing operations and optimize operations b. Verify system performance 4. Engineering and Design a. Analysis of thermal sources (waste heat from chillers, wastewater treatment plant, snowmaking, ice rinks, solar thermal/PV, etc.) b. Civil and legal, technical analysis (physical infrastructure/special districting) c. Preliminary loop design 5. Cost and Financial Analysis a. Federal, State and utility incentives and partnerships/financing opportunities b. Operational, maintenance, and utility costs 6. Define project size and develop construction documents 7. Form Geothermal District partnership agreements 8. Implement Phased construction process (drilling, piping, etc.) Staff have applied for a grant with the Colorado Energy Office to assess the feasibility and produce detailed engineering designs for a geothermal system utilizing waste heat from the wastewater treatment plant. A decision on grant awards is pending until early March. 19 Town of Vail Page 5 IV. Attachments A. Letter of Support - HCE B. Letter of Support - ERWSD C. Report – The Heat Beneath Our Feet D. Report - Vail CO Borehole and TC Test Report E. Report – Geothermal Heat Pumps: Challenges and Opportunities F. Presentation – Vail Community Geothermal District Project 20 Vail Geothermal Update Town Council February 20th, 2024 21 Town of Vail Environmental Goals Town of Vail |TR vailgov.com Reducing natural gas from snowmelt is top priority goal in: •2009 Environmental Sustainability Strategic Plan •2020 Climate Action Plan for the Eagle County Community •Vail’s Stewardship Roadmap •The Town Council Action plan 2021-2023 22 Town of Vail Greenhouse Gas Emissions Town of Vail |TR vailgov.com 23 Vail’s Snowmelt System At 593,814 sq ft (13.5 acres), Vail’s snowmelt system is one of the largest in the world, and second only Holland MI in community snowmelt 24 Town of Vail Natural Gas and GHG Emissions Town of Vail |TR vailgov.com Snowmelt = 80% of the town’s natural gas use and GHG emissions 25 Geothermal Heat Pumps Town of Vail |TR vailgov.com Geothermal systems include: 1. An underground heat collector made of buried loops 2. A heat pump to concentrate heat 3. A heat distribution system 26 Geothermal Districts Town of Vail |TR vailgov.com Geothermal heat pumps can meet an entire community’s heating/cooling needs on a single network 27 Colorado Mesa University Town of Vail |TR vailgov.com CMU Geo Exchange - an Ambient Temperature Loop (ATL) heats and cool 1.3 million sq ft of building space 28 CMU Annual Utilities Comparison Town of Vail |TR vailgov.com $1.5 million annual utility savings at CMU compared to conventional HVAC 29 Geothermal Projects in Colorado Town of Vail |TR vailgov.com •Eagle, Pitkin, & Routt Counties, Carbondale & Steamboat in various stages of implementing geo-exchanges •Strong support at state level, Governor Polis promoting the technology 30 How a Geothermal District Could Work in Vail Town of Vail |TR vailgov.com 31 Waste Water Heat Opportunity Town of Vail |TR vailgov.com A geothermal district in the Town of Vail is an excellent way to help solve two problems at once: provide a method of sustainably heating pedestrian areas, as well as using excess heat from the wastewater effluent. The proposed project has the potential to reduce emissions that would have been produced in two locations (to heat the community area and cool the effluent). -Siri Roman, GM, ERWSD 32 Geothermal District Development Process Initial Scoping Form Geothermal District Partnership Agreements Implement Phased Construction Process (drilling, piping, etc.) Scoping/ Construction docs Costing & Financial Analysis Engineering & Design Retro- Commission ing and Verification Geological Studies and Analysis Phase I Phase 2 Phase 3 Jun e 2023 July Aug Sep t Oct Nov JanDec Jun eMar 2024 2025 Apr i l MayFeb July Aug Sep t Oct Nov Dec Jan Feb Mar Apr i l May Jun e July Aug Sep t Oct Nov Dec Jan 2026/ 27-28 33 Thermal Conductivity Test Results Town of Vail |TR vailgov.com Very strong potential in the local geology exists for geothermal energy and storage. Vail has 2x the resource of other regional projects. 34 Thermal Conductivity Test Results Town of Vail |TR vailgov.com “The results are conclusive based on the available data and site location. This is an excellent area for a GHEX. Given the mountain valley location, the surface water level is likely very reliable and thus the results dependable for GHEX use. Richard A. Clemenzi, PE, CGD 35 Geothermal and Electric Supply Town of Vail |TR vailgov.com Geothermal systems can ease peak wintertime demand as heating loads become electrified because they can store thermal energy available on demand as required by snowmelt, without excessive draw on the electric grid. 36 Holy Cross Energy Town of Vail |TR vailgov.com HCE supports the Town of Vail’s Civic Area Geothermal District Project as it will demonstrate the feasibility of replacing the use of natural gas for heating with clean electricity in a manner that is safe, affordable, and reliable. The proposed thermal energy district will also provide HCE with a flexible, large electric load that can be managed in response to the variability of available electricity supply, enabling greater integration of variable renewable energy resources in furtherance of HCE’s carbon-free electricity goals. -Bryan Hannegan, CEO of Holy Cross Energy 37 Colorado Geothermal Energy Grant Town of Vail |TR vailgov.com If awarded, the grant will allocate resources towards proving constructability, determine costs and support technical requirements for Phase 2: •Engineering and Design •Costing and Financial Analysis including IRA implications •Scoping and Construction Documents Decision early March, 2024 38 970.947.5479 • holycross.com 3799 Highway 82 • PO Box 2150 • Glenwood Springs, CO 81602 January 18, 2024 The Honorable Will Toor Executive Director Colorado Energy Office 1600 Broadway, Suite 1960 Denver, CO 80202 RE: Support for the Town of Vail’s Civic Area Geothermal District Project GEGP Proposal Dear Mr. Toor, I write to express my strong support for Town of Vail’s proposal to the Colorado Energy Office (CEO) Geothermal Energy Grant Program (GEGP) to complete a Phase 2 Design Study and partial design of a Civic Area Geothermal District Project involving the Town’s snowmelt operations, the Dobson ice arena, the Vail Public Library, and the Eagle River Water and Sanitation District wastewater treatment plant, with potential expansion in the future to the Civic Area redevelopment and to private buildings and hotels. Holy Cross Energy (HCE) is a member-owned rural electric cooperative serving over 46,000 customers in Western Colorado. As you know, HCE serves a mountainous area that is prone to winter storms and wildfires, making resilience of electric service a primary concern for the tourism-based communities we serve. In addition, the communities HCE serves have ambitious clean energy goals with an emphasis on local project development. In 2024, HCE expects to provide electricity supply that is more than 75% carbon-free, well on the way to its goal of providing 100% carbon-free electricity to its members and communities by 2030. HCE supports the Town of Vail’s Civic Area Geothermal District Project as it will demonstrate the feasibility of replacing the use of natural gas for heating with clean electricity in a manner that is safe, affordable, and reliable. The proposed thermal energy district will also provide HCE with a flexible, large electric load that can be managed in response to the variability of available electricity supply, enabling greater integration of variable renewable energy resources in furtherance of HCE’s carbon-free electricity goals. HCE anticipates being directly involved with the Project through the investment of staff labor and in-kind resources. as this project will be critical to informing HCE’s investment decisions going forward. HCE encourages you to give this proposal your utmost consideration. Should you wish to discuss this further, please don’t hesitate to reach out to me directly. Sincerely, Bryan Hannegan President and CEO 39 Jan. 17, 2024 Colorado Energy Office Re: Town of Vail - Geothermal Energy Grant Program To Whom it May Concern: Eagle River Water & Sanitation District (District) is pleased to write a letter of support for the Town of Vail’s (TOV) grant application to the Colorado Energy Office (CEO) for the Civic Area Geothermal District project. The proposed project will explore the feasibility of using excess heat from wastewater, combined with geothermal, to sustainably melt snow in high traffic pedestrian areas. This project aligns perfectly with the Colorado Energy Office’s Geothermal Energy Grant Program guidelines as it will significantly reduce the town’s reliance on natural gas and furthers the town’s sustainability goals. The impacts of a warming climate including reduced snowpack, earlier runoff, and longer and hotter summers are impacting both water supply and instream water temperatures. The District, and other wastewater dischargers, are being asked to cool wastewater effluent for a few weeks out of the year, in an effort to slow the overall rise in creek/river temperatures. Significant research shows that cooling the effluent will not impact instream temperatures during the summer and fall, will cost customers tens of millions of dollars, and will drastically increase the environmental footprint of our operations. A more logical approach is to reduce water use, restore riparian habitats, strategically plant trees for shading, and explore mutually beneficial projects such as the proposed project. A geothermal district in the TOV is an excellent way to help solve two problems at once: provide a method of sustainably heating pedestrian areas, as well as using excess heat from the wastewater effluent. The proposed project has the potential to reduce emissions that would have been produced in two locations (to heat the community area and cool the effluent). The TOV and the District have a long history of collaboration, including improving instream water quality, restoring riparian habitat, reducing water use, improving infrastructure, and developing workforce housing. This project serves as another example of our sustainable collaboration. In conclusion, the District fully supports the TOV in their efforts to obtain Colorado Energy Office funding for the Civic Area Geothermal District project. We believe this project is an excellent opportunity to help achieve two important goals: provide a sustainable geothermal heating source for the community and potentially reduce in-stream temperatures of Gore Creek, a vital source of domestic water supply for the TOV. Protecting the health of our watershed is critical to the District’s mission and operations and we are excited to collaborate on this project. Sincerely, Siri Roman General Manager, Eagle River Water & Sanitation District 40 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 1 The Heat Beneath Our Feet The Initiative of Colorado Governor Jared Polis 41 2 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE Dear Friends and Colleagues, When I was elected as Chair of Western Governors’ Association by my colleagues, I knew that I wanted to choose an initiative with the potential to improve the lives of all Westerners. That is why I worked with Western Governors’ Association to launch the Heat Beneath Our Feet initiative, which is taking a bold and bipartisan approach to advance the development and deployment of geothermal energy. Jump-starting the adoption of geothermal energy technologies can create new opportunities to boost local economies; provide low-cost, reliable power, heating, and cooling to communities; and assist in meeting our renewable energy and energy security goals. As we move towards true energy independence, the environmental benefits of geothermal energy generation can help position the West for further economic, environmental, and quality of life success. While eliminating almost all emissions compared to traditional energy sources, geothermal resources do not sacrifice reliability and can generate much needed baseload power. The West is uniquely situated to take advantage of this energy source. While the United States accounts for 25 percent of the world’s installed geothermal energy capacity, western states contain fully 95 percent of that capacity. Geothermal energy holds the potential to create jobs and provide reliable, low-cost domestic and secure energy. Consumers also benefit from direct applications of geothermal energy. Geothermal heat pumps are estimated to use 25 to 50 percent less energy than conventional heating or cooling systems, saving people money. The Heat Beneath Our Feet initiative evaluated strategies to scale geothermal technologies across the West. Factors such as available geothermal resources, differing energy policy landscapes, workforce maturity, and emerging technologies were taken into account when compiling this report. The recommendations contained within this report were generated through a rigorous stakeholder process and vetted by subject matter experts over the course of the initiative. In true western fashion, businesses have embraced the entrepreneurial spirit and are growing the geothermal sector into a robust economic generator. Colorado is joined by other western states in working to ensure that these companies have our support on the front lines of geothermal innovation. I would like to extend my gratitude to all our state, academic, industry, and federal partners, including the U.S. Department of Energy, as well as to our initiative sponsors who contributed their time and expertise to this initiative’s workshops, webinars, and podcasts. I look forward to continuing to work with them to advance the development and deployment of geothermal energy to successfully tap the heat beneath our feet. Sincerely, Jared Polis Governor of Colorado WGA Chair 42 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 3 Greetings Friends of the West, Very few know what it takes to provide reliable and affordable energy to millions of people, but you can be certain to count Western Governors among them. The West has long been a leader in American energy production and leads the nation in the new frontiers of clean renewable energy development. It is no surprise that Western Governors are at the forefront again, this time with geothermal. Beginning in July of 2022, WGA Chair and Governor of Colorado Jared Polis launched his Heat Beneath Our Feet initiative aimed at exploring opportunities to accelerate the development of geothermal resources. As a result, WGA convened stakeholders from public, private, and non-profit organizations to drill down to the issues holding back the expansion of geothermal energy in the West. We are grateful to those who participated in our series of work sessions, webinars, and podcasts held throughout the year. Their enthusiasm was matched by the support of Governors who hosted initiative tours and work sessions, including former Governor David Ige of Hawaii, Governor Brad Little of Idaho, Governor Spencer Cox of Utah, and Governor Polis. As geothermal is having a moment on the national stage, attracting the attention of policymakers at all levels of government, this report can be used by any stakeholder interested in learning about the potential of geothermal energy in the West and how its development can be supported. If the level of engagement from members of the geothermal community is any indication, this resource has a bright future. If you have followed WGA’s previous chair initiatives, you know they provide a rare venue for pragmatic, bipartisan policy discussions that lead to meaningful solutions. The effectiveness of past initiatives is evidenced by the support we received from Governors throughout the West to complete the work needed for this final report. It is also a testament to my predecessor, Jim Ogsbury, who saw nine Chair initiatives across the the finish line over the past ten years and set us up for success on Heat Beneath Our Feet. I would like to extend my gratitude to Governor Polis for his leadership as WGA Chair over this past year – WGA would not exist without Governors, year after year, taking up the mantle to lead our organization. Further, the support we received from our sponsor community and stakeholders for this endeavor was immense and appreciated beyond measure. Our work on this initiative would not have been possible without them. Sincerely, Jack Waldorf Executive Director Western Governors’ Association 43 4 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE EXECUTIVE SUMMARY Colorado Governor Jared Polis, Chair of the Western Governors’ Association (WGA), launched The Heat Beneath Our Feet initiative in 2022 to examine opportunities for and barriers to the accelerated development and deployment of geothermal energy technologies. The potential of geothermal energy in the West is vast, and offers significant advantages and benefits in efforts to expand the portfolio of renewable energy resources. Advances in technology and increased interest in developing domestic sources of low-cost, reliable, clean energy have brought greater attention to the energy potential of the heat beneath our feet. 44 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 5 reduce uncertainty in geothermal exploration, exploring models to help developers secure financing for exploratory drilling and mitigate drilling risk, and extending existing tax incentives for the oil and gas industry to include geothermal development. • Optimize permitting and improve regulatory certainty: Permitting timelines can also be prohibitive for geothermal development. Lengthy delays can be mitigated by providing tools and resources to help stakeholders navigate the geothermal development process, increasing agency capacity for leasing and permitting, developing streamlined processes and categorical exclusions for geothermal leasing on par with other energy categories, expanding oil and gas exploration regulatory efficiencies to geothermal development, and collaborating with tribes and communities prior to and during project development. • Expand funding opportunities: U.S. Department of Energy (DOE) funding for demonstration projects and the Geothermal Technologies Office (GTO) should be increased. Investment in energy transition communities should be encouraged. • Implement incentives for consumer adoption: Expedite the deployment of tax incentives, rebates, and end-user applications to spur the adoption of geothermal heating and cooling. • Develop workforce and contractor ecosystem: Geothermal energy can generate good jobs and create opportunities for workers and communities affected by the energy transition. Workforce development in the geothermal industry should be supported, including through the development of training and certification programs. • Increase awareness and education to develop geothermal markets: Develop guidance for policymakers, regulators, and utilities to better promote geothermal energy. The Heat Beneath Our Feet initiative report is a resource for policymakers and stakeholders. Initiative recommendations can assist in accelerating the development and deployment of geothermal technologies, which can play a significant role in meeting the West’s energy needs for a clean and sustainable future. The initiative examined the various market, technology, and policy factors that affect the development of geothermal resources. Through a rigorous stakeholder process that included four workshops, six tours, a public survey, and a webinar series, the Heat Beneath Our Feet initiative generated recommendations for increasing the development and deployment of geothermal energy in the West, including: • Improve resource assessment and data collection: Increasing federal funding for resource assessments, coordinating efforts to target areas with the greatest potential, improving the federal repository of data relevant to geothermal development, and leveraging data from the oil and gas industry, as well as new technology, will increase our understanding of subsurface resources and foster additional geothermal development. • Mitigate risk in drilling and exploration: Risk and uncertainty contribute to relatively high up-front costs for geothermal development. Those costs can be abated by continuing federal investment to Beneath Boise’s City Hall lies an intricate network of pipes that act as a heat exchanger for the city’s geothermal district heating systems. Idaho workshop participants toured the mechanical room at City Hall to view the infrastructure. 45 6 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE Background Geothermal energy is a valuable but remarkably untapped resource in the West. The heat stored within the Earth can support a wide spectrum of end uses, including reliable, domestic, and renewable electricity generation for the grid, renewable building heating and cooling, underground thermal energy storage, and other direct use applications for agriculture, recreation, and industry. Advances in technology and increased interest in developing domestic sources of reliable, clean energy have brought greater attention to the underutilized potential of this ubiquitous energy resource. Western states pioneered the development of geothermal technology and contain the vast majority of working geothermal resources in the United States. In the 1890s, Boise, Idaho, established the nation’s first geothermal heating district, providing heat to residential and commercial buildings. Today, Boise’s geothermal heating district, including the original Warm Springs Water District, is the largest in the nation, heating over six million square feet – including the Idaho State Capitol. The West pioneered the use of geothermal energy to generate electricity, too. The first geothermal electrical generation unit in the western hemisphere was constructed in California in 1960. The Geysers geothermal field is now the largest in the world, with a net generation capacity of more than 800 megawatts of electricity.1 Responsible development of geothermal power can address several critical needs for future U.S. energy demands. It is a domestic energy source, has a small surface footprint, and produces close to zero carbon and other air emissions, making it a clean and sustainable energy resource. Additionally, geothermal resources are always available, providing stability to the electric grid. Passive geothermal energy can also address one of the biggest categories of energy use: building heating and cooling. Heating and cooling are the largest annual uses of electricity in the residential sector, accounting for more than 40 percent of an average home’s electricity use.4 Currently, natural gas is the primary heating fuel in much of the West. While natural gas prices can fluctuate based on market conditions, global events, and weather, the Geothermal Energy 101 Geothermal energy is the thermal energy generated from natural geological processes and radioactive material decaying in the Earth’s crust. In general, the temperature increases at an average background thermal gradient around 86 degrees Fahrenheit per kilometer (though portions of the West exhibit a higher-than-average geothermal gradient). The range of temperatures of geothermal resources can be harnessed for different purposes. At relatively shallow depths - a couple of feet to a couple hundred feet - subsurface temperatures are stable year-round and are typically similar to room temperature and can be used for heating in winter and cooling in summer. Deeper wells extending thousands of feet below the surface can intersect natural or enhanced geothermal reservoirs with much hotter temperatures to support electricity generation. Grid Stability Through Dispatchable Energy Geothermal electricity generation provides consistent, reliable power. Geothermal power plants can have a capacity factor of 90 percent or higher, meaning that they operate at their maximum output level 90 percent of the time.2 Geothermal power can also be dispatchable, meaning that electricity production can vary (ramp up or down) as needed. Dispatchable energy is an important complement to renewable resources that have more variable generation. As the West continues to decarbonize energy systems with variable sources of renewable power such as wind and solar, geothermal can balance these sources and ensure reliability in the system. Compared to more traditional dispatchable energy sources like natural gas, the environmental impacts (e.g., land use footprint, greenhouse gas emissions, and air pollutants) of modern geothermal power plants are negligible. The surface footprint per GWh of electricity is smaller than coal, solar, or wind.3 46 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 7 costs of heating and cooling with geothermal are far more consistent. By harnessing the steady temperature of the Earth, geothermal systems can displace most of the energy needed to heat and cool buildings. Opportunities to utilize passive geothermal energy for heating and cooling, electricity generation, and certain industrial, recreational, and agricultural applications have vastly expanded since the development of the early examples noted above. Yet despite the many benefits geothermal energy offers, it still accounts for only 0.4 percent of electrical generation in the United States and is not yet widely utilized at scale for heating and cooling applications.5 Advancements in subsurface technologies from the oil and gas industry over the last two decades are improving the feasibility of geothermal systems. Expertise, efficiency, and safety practices in horizontal drilling and hydraulic fracturing have opened new possibilities for where geothermal developments can be located. Geothermal is attracting the attention of policymakers at all levels of government.6 Since WGA began work on this initiative, Congress has passed significant tax incentives for geothermal projects, DOE has committed hundreds of millions of dollars through the Energy Earthshots Initiative to research and develop geothermal energy, and states have begun to implement their own geothermal policies. In 2019, DOE published GeoVision, an in-depth technical analysis detailing the vast potential for geothermal energy development in the United States. A comprehensive report on the current status of geothermal deployment is provided in the National Renewable Energy Laboratory (NREL) publication, 2021 U.S. Geothermal Power Production and District Heating Market Report.7 The initiative toured geothermal sites in four states - Colorado, Utah, Hawaii, and Idaho - but geothermal energy is utilized throughout the West; examples of geothermal development in every western state and territory are included in the case studies section. Preparing for drilling at the Puna Geothermal Venture, operated by Ormat Technologies Inc. The exploration and drilling phases often bring the highest risk for failure and the most cost to geothermal development. 47 8 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE Geothermal Potential in the West “This map depicts the potential for development of hydrothermal and EGS systems in the United States as of 2018. Further analyses, including the DOE’s 2019 GeoVision report and NREL’s 2023 Enhanced Geothermal Shot Analysis, modeled the associated potential electricity capacity. The 2023 analysis concluded that the United States potentially has 90.5 gigawatts of electricity capacity that could be deployed by 2050, mostly in the West, including over 80 gigawatts from enhanced geothermal system deployment after 2030. This is more capacity than the entire U.S. nuclear fleet in 2021. Figure courtesy of the National Renewable Energy Laboratory. Geothermal energy can be used for a range of applications depending on the temperature and characteristics of the resource. Technological advancements are continually expanding the bounds of where and how geothermal energy can be harnessed cost effectively. Generally, high temperatures are needed to generate electricity, while lower temperatures can be utilized for industrial processes (e.g., agriculture) or building heating and cooling. Electricity Generation Geothermal power plants utilize conventional hydrothermal reservoirs as well as emerging enhanced geothermal system reservoirs to produce geothermal fluids for power generation across a few differing power plant configurations (e.g., dry steam, flash, binary cycle). Produced fluids are reinjected to the subsurface reservoir after heat has been extracted. Additionally, modular binary power plant units, which use a heat exchanger with a working fluid with a lower boiling point, are an emerging technology area for coproduction from oil and gas wells. A comprehensive description of geothermal technologies and power plant configurations is available in the DOE GeoVision report. Most geothermal power plants in use today utilize conventional hydrothermal resources, which are sources of naturally occurring hot water found at variable depths in the subsurface. Hydrothermal resources require a heat source, a fluid source (usually deeply circulating groundwater), and permeable pathways in Earth’s crust allowing for fluid circulation (open faults, open fractures, and/or interconnected pore spaces in rocks). Hydrothermal resources are primarily found in western states, where geologic conditions cause naturally elevated heat flow and permeable pathways. You may have experienced hydrothermal yourself: hot springs and geysers are expressions of underground hydrothermal systems and can aid in their identification, but many hydrothermal resources have no surface expression and are therefore more challenging to identify. These “hidden” systems hold significant potential in the West: The United States Geological Survey (USGS) estimates that the United States holds 23,038 megawatts of electricity of undiscovered hydrothermal resources compared to 5,128 megawatts of electricity already discovered.8 Hidden hydrothermal systems are sometimes inadvertently discovered through mining exploration. When a hydrothermal system is discovered, it must be characterized, usually by drilling test wells, to determine if enough heat, water, and permeability are present to produce cost-effective electricity. The investment necessary to characterize a system and deem it a viable resource can carry significant risk. As a result, an average of only 13.6 wells were drilled per year from 2015 through 2019.9 In locations throughout the West, there is sufficient subsurface heat, but water and permeability are often lacking. Enhanced geothermal systems (EGS) use advancements from the oil and gas industry, such as directional drilling and hydraulic fracturing, to engineer the necessary subsurface reservoirs to create permeability. This, combined with advancements in drilling technology, now allow for geothermal developers to potentially access resources beyond conventional hydrothermal systems, increasing the availability and locations of geothermal electricity resources. To create EGS projects, a production- 48 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 9 injection well is drilled into hot, dry rock with limited permeability and fluid content. Water is injected at high pressure to create or improve fractures within the rock to create a reservoir, then a second production well is drilled to intersect the fracture system and extract the heat from the rock mass. Additional production wells may then be drilled to meet power generation requirements. EGS is not yet cost-competitive and technical challenges remain,10 but the DOE Energy Earthshots Initiative has set a goal of reducing the cost of EGS to $45 MWh by 2035, in the same range as onshore wind today.11 Research and development are underway to advance the commercial viability of EGS, most notably at the DOE-funded Frontier Observatory for Research in Geothermal Energy (FORGE) in Milford, Utah. This is complemented by other investments into research and development by DOE, such as the Geothermal Limitless Approach to Drilling Efficiencies (GLADE) project in Colorado. GLADE is exploring drilling deeper and faster by using existing and novel drilling technologies to reduce the cost of developing geothermal wells. Additional advancements in technology could further broaden the utilization of geothermal energy. Closed-loop geothermal systems extract heat through sealed wells which recirculate the geothermal fluid, eliminating the loss of fluid to the surrounding formation. While this type of system is not yet commercial, closed-loop systems have significant potential and, if successful, advantages over other technologies since the type of fluid could potentially be changed from water to a more efficient heat transfer medium, such as supercritical carbon dioxide. Additionally, closed-loop systems may reduce environmental impacts and risk since fluid is not injected into underground reservoirs. Co-production and conversion of oil and gas wells are also areas of potential growth. In co-production, hot water produced by oil and gas extraction is used to generate electricity. Converting orphaned oil and gas wells to geothermal production is also possible. Given the rising trend of the electrification of drilling rigs in the oil and gas industry, many wells are also co-located with transmission. The intersection of oil and gas electrification with the potential for end-of-life conversion to geothermal electricity is an important consideration when weighing if and when to cap wells at end of life. Heating and Cooling Geothermal heating and cooling applications leverage the shallow subsurface as a heat source and sink, using a variety of system configurations for space conditioning of buildings. These configurations include direct use of geothermal fluid extracted from a subsurface reservoir, closed- loop vertical borehole field ground heat exchanger, standing column wells, surface water ground loops, and horizontal slinky systems, among others. Heating and cooling applications of geothermal energy utilize much lower temperatures than electricity generation. These technologies rely on either the constant temperatures in Earth’s crust for heat exchange (geo-exchange, or heating/cooling via geothermal heat pumps), or shallow subsurface geothermal heat for direct use. Direct use applications use hot water from a hydrothermal resource piped to a building, greenhouse, or industrial facility. Heat pumps use electricity to move heat from one area to another and have been used for over a century. Geothermal heat pumps, also called ground source heat pumps (GSHP) harness the steady temperature of the Earth at depths as shallow as 10 feet, which is warm relative to the air in winter and cool relative to the air in summer. GSHPs save the average homeowner money by using 25-50 percent less electricity than a conventional heating system, as they are able to move more heat than the direct electricity input.12 Direct use can be scaled up to serve Heating Efficiency Heat pump technology is more efficient than traditional heating systems because it uses the existing heat in the ground or air, saving consumers money and helping reduce carbon footprint. An air-source heat pump uses the ambient temperature of the outside air to provide heating or cooling to a building. A GSHP takes advantage of the constant underground temperatures (about 55 degrees Fahrenheit), allowing it to run efficiently year-round regardless of weather conditions. This high level of efficiency can help balance utility electric grid capacity as buildings electrify their heating and cooling, with some research showing even higher efficiency gains for networked geothermal systems or thermal energy networks. For example, electric resistance heating produces approximately one unit of heat per one unit of electricity, while GSHPs may produce (i.e., move) three or four units of heat for each input of electricity. While direct use requires a hydrothermal or EGS resource, GSHPs can be utilized anywhere with the installation of a ground heat exchanger. multiple buildings in a district or community in what is called a district heating system. The largest and oldest heating district in the country is located in Boise, Idaho, and has been operational since 1893. Geothermal water is pumped from a well in the Boise Foothills and runs downtown through a pipe system to retain water heat. Water is then pumped through a heat exchanger that cools the effluent and the energy is used to heat buildings. There are 23 active geothermal heating districts in the U.S., all of which are located in western states. GSHP technology can be used to heat and cool buildings of any size or across 49 10 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE multiple buildings on a distribution network in what is called a geo- exchange system. A networked series of pipes circulate a working fluid to absorb or release heat, using a ground loop as a renewable heat source in the winter and a heat sink in the summer. These systems are highly efficient and can provide significant cost savings, making it a compelling option for universities, campuses, and large buildings like stadiums. After converting its campus to a geothermal heating and cooling system in 2008, Colorado Mesa University in Grand Junction, Colorado, reported an annual savings of over $1.5 million. In 2022, those savings went directly toward reducing student tuition by two percent. To achieve an even larger scale, heat pumps can be integrated into thermal energy networks, which are utility-scale infrastructure projects that connect multiple buildings, neighborhoods, or subdevelopments into a shared network with sources of thermal energy. Rather than each building needing its own borehole, multiple buildings in a network can share the same thermal sources. Thermal energy networks can allow utilities to manage and operate geothermal systems for heating and cooling. Additional Applications of Geothermal Energy Geologic Thermal Energy Storage: Underground rock formations can be used to store energy over long periods. Excess energy can be captured and stored underground as thermal energy and then recovered and utilized when needed. This storage method can complement energy resources with higher variability to store for peak demand. Hydrogen Production: Utilizing geothermal electricity production to power electrolysis of water to produce hydrogen createss “green hydrogen,” a renewable, clean fuel source with little to no carbon footprint at the point of production. Operating electrolyzers powered with geothermal energy consistently can reduce the cost of hydrogen production on a per unit basis. While other renewable energy sources such as wind or solar have variable production, colocation of geothermal electricity with hydrogen production could lower production costs and eliminate the need to build transmission to connect electrolyzers to the grid or distributed energy sources. Mineral Extraction: Geothermal brines can contain a variety of dissolved minerals and salts, such as lithium. Lithium extraction from geothermal brines is an active area of research, particularly at the Salton Sea geothermal field in southern California. This technology makes geothermal a potential domestic source for the production of some critical minerals. Direct Air Capture (DAC): Direct air capture is the process of moving air over material that captures carbon dioxide from the atmosphere, which then can be injected into the subsurface for permanent storage or utilized for a variety of industrial processes. Solid system direct air capture requires temperatures ranging from 176-248 degrees Fahrenheit (80-120 degrees Celsius) and a reliable source of electricity, both of which can be provided by geothermal energy systems. Additional research on the potential synergy between direct air capture and geothermal energy systems could provide viable technology to address carbon capture needs potentially at much lower operating costs than other approaches to powering DAC. The drill at Utah FORGE, which is currently drilling a 10,000-foot-deep geothermal well to test Enhanced Geothermal Systems. 50 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 11 These discussions with energy experts, state and federal agencies, and other stakeholders brought together a wide array of perspectives. Their expertise and input are reflected in the policy recommendations included in this section. Recommendations are organized into three categories based on the type of geothermal resource and use they apply to: electricity generation, heating and cooling, and market development and transition opportunities. Recommendations The Western Governors’ Heat Beneath Our Feet initiative, under the leadership of WGA Chair, Colorado Governor Jared Polis, examined the various market, technology, regulatory, and policy factors that affect the development of geothermal resources and evaluated strategies to accelerate the deployment of geothermal technologies across the West. WGA conducted a rigorous stakeholder process, engaging with over 500 stakeholders through an online survey, tours, work sessions, and a webinar series. Electricity Generation Improve Resource Assessment and Data Collection A significant barrier to the development of new geothermal electricity generation projects is the upfront cost and risk. De-risking geothermal projects can result in much lower costs. Much of the immediate potential for electricity generation in western states is in the development of conventional hydrothermal resources without surface features. Since electricity generation depends on site-specific factors like the subsurface heat and permeability of the rock, even when a hydrothermal resource is found there is no guarantee development will succeed. Existing technologies and exploration methods can also estimate where they may occur, but with low reliability. Innovative exploration methods and improved data are needed to better image the subsurface and improve prospecting for these types of resources. Recommendation: Increase federal funding for resource assessments. Better data and the development of regional resource assessments can increase the rate of exploration success. At the federal level, USGS is responsible for mapping and assessing energy and mineral resources, including national-scale geothermal resource assessments. This data can be used to develop models, analyses and decision- making tools for geothermal resource targeting. Geothermal resource identification requires relatively granular data, which is lacking in much of the West and both costly and time consuming to collect. USGS, in partnership with DOE’s GTO, is pursuing several projects to collect data at the needed scales across the West. GTO led an initiative from 2015 to 2020 to develop a Play Fairway Analysis (PFA) for geothermal resource assessments. A PFA is a data mapping method adopted from the oil and gas industry to create a geostatistical map of probable geothermal resources. Assessments are conducted at a basin or regional scale. Further federal development or support of PFA mapping initiatives to assess geothermal resources would assist in the siting of geothermal projects. Congress should provide USGS and DOE with funding to increase the pace and scale of data collection, mapping and resource assessments and facilitate collaboration with state geological surveys. DOE should also leverage synergies with other programs, such as USGS’s Earth Mapping Resources Initiative (MRI) that are complementary efforts and in which states are already partners, to expedite efforts to assess geothermal resources. Large scale mapping and data collection can benefit from significant economies of scale and generate far greater return than a hit or miss approach from private funding sources that would add to project costs. 51 12 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE Recommendation: Coordinate with states to target areas with greatest potential. Partnership with states and state geological surveys is critical, both to identify areas with the highest potential for geothermal development across a range of factors, and to leverage relevant data states already possess. States serve a critical function as primary sources and stewards of geospatial, scientific, and technical datasets that support the development of renewable energy resources. State geological surveys should have the opportunity to provide input and recommendations on where USGS and GTO prioritize resource assessment efforts in their states. Recommendation: Improve the federal repository of relevant geothermal development data and the ability to interact with it. When siting projects, geothermal developers consider multiple factors such as heat gradients, grid capacity, transmission, and environmental justice. The federal geothermal data repository should seek to incorporate data relevant to those factors, such as mapping overlays of critical habitat for endangered species, hydrological data, and existing transmission capacity. These resources, while not all directly related to geothermal development, capture unique aspects of regional and basin specific landscapes and other characteristics that affect the siting and deployment of geothermal projects. This data will allow for locations ideal for the siting of geothermal development to be more easily located. This federal repository could build on NREL’s Geothermal Prospector and should be publicly available and easily accessible online. Recommendation: Leverage data from the oil and gas industry. The oil and gas industry and the mining industry are natural partners in the development and deployment of geothermal technology and resources. Both industries rely heavily on subsurface expertise that could help reduce the exploration and drilling costs of the geothermal industry. These operators should be encouraged to share data from existing operations with geothermal developers. Further, public- private partnerships with DOE should be encouraged to reduce the cost of drilling for geothermal wells through project demonstration grants. Governors can facilitate the collection of data from existing oil and gas wells and facilitate geothermal permitting under a similar structure as existing drilling. Orphaned oil and gas wells under the state’s control or directive could be used to collect temperature gradient data or could even be converted into a geothermal resource. Developing and sharing, in an open call for collaboration, an inventory of orphaned wells could save states the cost of plugging wells and reduce exploration and drilling costs to geothermal developers. Mitigate Risk in Drilling and Exploration While Play Fairway Analysis mapping provides a good estimate of where geothermal resources may be located, subsurface activities are needed to confirm their presence. Often requiring drilling, the confirmation of viable resources can cost millions of dollars without the promise of success. This risk drives up the cost of financing geothermal developments. Federal agencies should consider reducing risk in this phase of development through support for technological advancements, insurance, tax incentives, and regulatory improvements. Recommendation: Continue federal investment in reducing uncertainty in geothermal exploration. In 2020, DOE launched the Hidden Systems Initiative to provide grants for the research and development of innovative subsurface technologies. Research and development from these grants could tailor drilling technologies to geothermal resources and provide useful geological data, both of which help minimize the financial risk of confirming a resource. Congress should extend authorization and increase funding for the Hidden Systems Initiative. Recommendation: Explore models to help developers secure financing for exploratory drilling. The high risk and high upfront cost of geothermal development resulting from uncertainty in the viability of resources is a significant barrier to the industry’s growth. To offset some of the risk and encourage investment, DOE offered several programs from Governors Jared Polis and Spencer Cox with join the team from Cyrq Energy at its Thermo Geothermal Power Plant in Utah. 52 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 13 the late 1970s to the late 1980s. One of those programs was the User-Coupled Confirmation Drilling Program (UCDP) cost-sharing grant, through which a developer paid 80 percent of the cost if a project was successful and only 10 percent if the resource did not prove to be viable. The U.S. experienced the most growth in geothermal power capacity during the period this program was offered. Globally, programs to mitigate the upfront risk of geothermal development, such as guaranteed loans and public financing, are common. European markets have addressed this challenge by offering insurance for geothermal exploratory drilling. In the U.S., there are currently limited programs at the federal level to help geothermal developers get past the high-risk early stages of development. DOE should explore the feasibility of cost share programs, such as guaranteed loans, insurance, and grants, and assess the effect these mechanisms would have on the geothermal industry. Recommendation: Extend existing tax incentives for the oil and gas industries to geothermal development. Despite the similarity of exploration activities in the geothermal and oil and gas industry, some regulatory and tax incentives that currently apply to exploratory wells drilled for oil and gas do not apply to geothermal exploration. Oil and gas companies can deduct intangible drilling costs, defined as costs related to drilling that have no salvageable value, from their income tax. Congress should extend this tax treatment to the geothermal industry. Optimize Permitting and Improve Regulatory Certainty Difficulty navigating the permitting process can also hinder geothermal development. Opportunities exist to optimize those processes that could result in shorter development timelines, thereby reducing costs for developers and encouraging more exploration and discovery of geothermal resources. Many geothermal resources are located on federal lands managed by the Bureau of Land Management (BLM) and U.S. Forest Service (USFS). Timelines for permitting approval can include up to six separate environmental reviews, which typically can require seven to ten years to complete. Regulations also vary by state and by the type of geothermal development. Efficient permitting and a clear and consistent regulatory environment would help foster the geothermal industry. Recommendation: Provide tools and resources to help proponents navigate the geothermal development process. DOE should coordinate with states to maintain publicly available resources detailing the state and federal requirements that apply to geothermal development in each state. DOE’s Regulatory and Permitting Information Desktop Advancements in geothermal drilling technology, such as those developed at Utah FORGE, are increasing the rate of drill penetration and reducing the cost of developing geothermal wells. 53 14 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE (RAPID) toolkit is an excellent tool to provide easy access to federal and state permitting information and best practices. The RAPID toolkit should be updated to include all western states and maintained to ensure that it reflects up-to-date and accurate information. Because the majority of geothermal resources in the West occur on BLM land, BLM should also ensure that relevant information and regulations are easily accessible to developers. BLM maintains a resource page for geothermal development, but more information on the conversion of oil and gas wells to geothermal development would be helpful, as would integration of BLM’s information with DOE’s RAPID toolkit. Recommendation: Increase agency capacity for leasing and permitting. BLM and USFS need adequate staffing and expertise at their local offices to approve and process geothermal lease nominations. Geothermal lease nominations for projects proposed on federal surface lands not managed by BLM must be approved by both agencies, meaning that both agencies must complete an environmental review process under the National Environmental Policy Act (NEPA). This process can take up to four years. While it is critical to conduct thorough and comprehensive environmental reviews, the length of that process can be affected by staffing shortages, competing priorities, and inexperience with geothermal development. After leasing, geothermal projects require at least two subsequent NEPA reviews conducted by BLM for resource confirmation activities and utilization plans. Field offices with experience permitting geothermal development are generally more efficient and able to process permits more quickly than those that have not. These additional steps are above and beyond those generally required for similar activity on state, tribal, or private land and therefore largely exclude federal land from geothermal opportunities. The Department of the Interior (DOI), USFS, and Congress should ensure that the relevant agencies are adequately staffed to review permits in a timely fashion. DOI and USFS should also ensure agency staff have access to technical experts to build staff expertise in geothermal development. A partnership with DOE’s GTO should develop training materials, standard operating procedures, and provide technical support to field and district offices. Recommendation: Develop streamlined processes for geothermal leasing on par with other energy categories. In 2008, BLM and USFS released the Final Programmatic Environmental Impact Statement for Geothermal Leasing in the Western United States to facilitate decisions on geothermal lease applications. This remains an effective tool to help the agencies process lease nominations. As a next step, BLM should establish priority leasing areas for geothermal energy, as it has done for wind and solar energy in Instruction Memorandum No. 2022-027. Priority leasing areas should shorten development timelines for projects with the greatest technical and financial feasibility and the least anticipated natural and cultural resource conflicts on BLM-administered lands. Cyrq Energy’s Thermo Geothermal Power Plant, which sustainably produces power used in Anaheim, California. 54 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 15 Recommendation: Expand oil and gas exploration regulatory efficiencies to geothermal development. Exploration in the oil and gas industry has benefited from Section 390 of The Energy Policy Act of 2005, which authorizes BLM to apply a categorical exclusion when approving exploratory drilling for oil and gas resources. Categorical exclusions apply to categories of activities that an agency has determined have no significant impact to the human environment and thus do not require an environmental assessment or environmental impact statement under NEPA. They can be an effective tool to streamline environmental review processes in specific circumstances defined by the agency. Congress should expand Section 390 to include geothermal exploration, which would allow agencies to use the existing categorical exclusion to facilitate increased geothermal exploration and the discovery of new resources without compromising environmental protections. Recommendation: Fund research on the water usage of EGS. Increasing the share of U.S. electricity produced from geothermal energy is not expected to increase the water demand of the power sector overall. Geothermal technologies do not require fresh water and can operate with brackish or even municipal wastewater – a significant benefit in the arid West. Water can also often be retained in a closed system. Air cooling and passive geothermal cooling also represent viable alternatives to water cooling in arid areas. It is also critical to ensure the efficient use and protection of water resources for the development of EGS. DOE should fund water efficiency research as part of the Enhanced Geothermal Shot and related EGS efforts. Recommendation: Collaborate with tribes and communities, including consultation prior to and during project development. Geothermal resources can occur on tribal lands across the western United States. Even when these opportunities are not on tribal land, they can occur in areas with historical or cultural significance to tribes. Where relevant, it is important to consult tribes at the beginning of a potential geothermal project and ensure that the resource is developed in a way that does not damage sensitive historical and cultural resources. To help developers consider these factors in siting decisions, data layers incorporating the location of these resources should be included in federal geothermal repositories and considered in the development of priority leasing areas. Expand Funding Opportunities Improved data leading to higher confidence in locating resources and permitting process improvements that shorten development timelines will help reduce uncertainty and risk in geothermal development and make it more attractive to investors and capital markets. Recommendation: Expand funding for demonstration projects. Congress should expand funding for programs that support geothermal demonstration projects such as those under the DOE Loan Program Office’s Title 17 Clean Energy Financing program. Further demonstration of geothermal projects could open market avenues for electrical generation and heating that spur private investment. Congress should continue to fund the FORGE project and establish additional EGS demonstration projects in the West. The FORGE demonstration project is developing technologies and techniques necessary to commercialize EGS and build confidence in the industry. Recommendation: Encourage development in energy transition communities. The Inflation Reduction Act (Pub. L. 117–169) includes bonus credits for renewable energy development that occurs in energy communities, which are defined to include communities with substantial employment driven by the coal, power plants, and the oil and gas sector. This is an important provision to stimulate job creation and economic development in communities Lauren Boyd, the Acting Director of the Geothermal Technologies Office, addressed Governor Jared Polis and Alejandro Moreno, the Acting Assistant Secretary for Energy Efficiency and Renewable Energy, during an initiative workshop at the National Renewable Energy Laboratory in Golden, Colorado. 55 16 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE affected by the energy transition. Where the economic benefits are justified, DOE should target funding towards these communities for the conversion of existing oil and gas wells to geothermal energy as part of a just transition. Due to years of development in these areas, the local geology is well understood, thereby lowering the risks and costs associated with exploration. Areas with existing coal and natural gas power plants also have transmission infrastructure already in place. Recommendation: Increase funding levels for the Geothermal Technologies Office. The Energy Act of 2020 authorized funding for GTO at $170 million annually through Fiscal Year (FY) 2025. Appropriations in recent years have been significantly below the authorized level. In FY23, Congress appropriated $118 million for the office, the lowest level among DOE renewable energy offices. Congress should appropriate sufficient funds to the GTO to establish a strong research and development capability and to execute the recommendations contained in this report. Heating and Cooling Implement Incentives for Consumer Adoption Home-, neighborhood-, and subdevelopment-level passive heating and cooling applications of geothermal energy are proven technologies that have been used in the West for over a century. The Inflation Reduction Act extended the 30 percent investment tax credit through 2032 for geothermal projects that meet prevailing wages and apprenticeship requirements. Project developers can receive up to an additional 20 percent if projects meet domestic content requirements and are located in energy communities. The efficient rollout of these programs to end users is critical to the adoption of geothermal heating and cooling systems, including networked geo-exchange systems or thermal energy networks, and the following recommendation would assist in developing these underutilized assets. Recommendation: Expedite the deployment of tax incentives, rebates, and end-user applications. The Inflation Reduction Act both increased and expanded the tax credits and rebate program for the installation of geothermal heating systems. The Internal Revenue Service should move quickly to implement these programs so that consumers can begin taking advantage of them as soon as possible and define domestic content requirements in as expansive a manner as permissible under federal law. Transitional Opportunities and Market Development Growing the geothermal industry will create jobs and economic opportunity for workers across the West. Geothermal electricity generation creates long-term jobs in the operation of geothermal power plants and has a fully domestic supply chain, making these projects strong candidates for the full federal investment tax credit with opportunities for apprenticeship programs. The following recommendations would help develop the workforce needed to take advantage of geothermal energy potential and address the need for greater public awareness of the benefits of geothermal energy deployment. Jon Gunnerson, the Geothermal Coordinator for the City of Boise, explains to workshop participants how the Boise Warm Spring Water District has expanded operations from heating just a handful of buildings in 1892 to now sustainably heating 6 million square feet of building space. 56 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 17 Develop Workforce and Contractor Ecosystem The initial phases of geothermal exploration and resource assessment are valuable job creators and utilize much of the same equipment, contractors, and expertise as the oil and gas industry. Heating and cooling also offer significant potential for job growth in manufacturing, design, installation, and maintenance. In both cases, the skills in demand are transferable across multiple sectors. Recommendation: Create opportunities for workers and communities affected by the energy transition. Since many of the skills and positions needed for geothermal energy development are highly transferable from the oil and gas industry and conventional power plant operations, there is an opportunity to target investment to communities that are experiencing the loss of jobs and economic activity due to the closure of power plants and other effects of the energy transition. As technology advances, it may even become possible to repurpose shuttered coal- or natural gas- fired power plants as geothermal power plants. Conversion of oil and gas wells could also provide transition opportunities to communities and workers affected by the energy transition. Congress should establish a mechanism within DOE that leverages existing expertise and relationships in the national labs to conduct education and workforce development. Congress and DOE, in conjunction with other federal agencies, should also consider opportunities to target these communities with resources and training, and collaborate with relevant trade unions to expedite its deployment in communities. Recommendation: Support workforce development in the geothermal industry. For consumers to adopt GSHPs, homebuilders, contractors, and heating and cooling specialists will need to have the expertise and skilled workforce to offer those services at competitive prices. Policymakers should support the development of industry- wide training opportunities and collaborate when applicable with trade unions that perform this work. The industry should work closely with states to develop and scale up training pathways to meet this workforce demand. Increase Awareness and Education to Develop Geothermal Markets Lack of awareness of geothermal energy and its potential in the West is another barrier to greater use of geothermal resources. The geothermal market has many stakeholders, including policymakers, regulators, utilities, consumers, local governments, and tribal communities. Understanding of geothermal energy needs to be raised in each group of stakeholders to increase the deployment of geothermal projects in the West. Recommendation: Develop guidance for policymakers, regulators, and utilities to conduct cost-benefit analyses of geothermal energy. Many of the advancements in geothermal energy have been made in the last decade and incorporating novel advancements into utility resource planning can be challenging. One difficulty is that the value of geothermal energy is not always fully realized in traditional methods of calculating energy costs, such as the levelized cost of energy, and attributes of geothermal such as the dispatchable nature, extremely low operating costs coupled with longevity, reliability, and negligible emissions, are often left out of planning. Working with utilities to understand how integration of geothermal resources would work within their market or dispatch construct could help capture the total cost and savings to their system. Greater awareness of the firm, clean nature of geothermal energy could build more confidence in the resource and lead to utilities encouraging geothermal solicitations in their bids. DOE should develop guidance on how to incorporate the full value of geothermal projects into resource planning. Amanda Kolker, the laboratory program manager for Geothermal at the National Renewable Energy Laboratory, discussed the benefits of geothermal energy during a WGA workshop at the facility in Golden, Colorado. 57 18 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE Workshops, Webinars and Podcast Colorado Mesa University Geo-Exchange Tour September 27, 2022 The Heat Beneath Our Feet Initiative kicked off with a tour of the geo- exchange heating and cooling system at Colorado Mesa University (CMU). Using less than half of the electricity required by a traditional HVAC system, the geo-exchange heating and cooling system at CMU controls the climate in 70 percent of the buildings on campus (1.2 million square feet). In the summer, it absorbs excess heat from the buildings on campus and either stores it underground for later use or transfers it to other facilities in need – it even heats the University’s Olympic-sized swimming pool. In the winter, the system pumps the geothermally heated water 500 feet below the school into the buildings on campus for heating purposes. Doing so reduces the University’s carbon footprint by nearly 18 metric tons a year and saves $1.5 million a year on energy costs, savings that were passed directly along to reduce student tuition. It has been so successful, the University is not only expanding the system to all of the new construction on campus, but it is also working with the city of Grand Junction to explore options for expanding the system into the surrounding community. “This is an exciting example of community-scale geothermal,” Colorado Governor Jared Polis said at the workshop. “Once we build this great geothermal heating and cooling system, we can leverage it to help extend the benefits and savings to the community.” As the country looks to electrify much of its heating and cooling needs, Amanda Kolker, Geothermal Program Manager at the National Renewable Energy Laboratory, said, “This is one of the few solutions” to successfully do so without overwhelming the grid. “The ‘electrify everything’ pathway will be a difficult one for the grid to accommodate unless our alternatives to gas-fired heating and cooling are highly efficient and resilient,” she said. “That’s why the work being done [at CMU] is so important to highlight and build on.” Following the tour, WGA hosted a webinar with Will Toor, the Executive Director of the Colorado Energy Office, and Kent Marsh, the Vice President for Capital Planning Sustainability and Campus Operations at CMU. Together they discussed the nuances of geothermal heat exchange systems, opportunities to replicate this technology throughout the West, and challenges to implementation. During his tour, Gov. Polis also met with CMU students who received a 2 percent reduction in tuition last year due to the energy savings from the University’s geo-exchange system. Governor Jared Polis toured the geo-exchange system at Colorado Mesa University (CMU) with University President John Marshall. With additional state funding approved by Governor Polis, CMU hopes to become the first university in the country to use geo- thermal energy to heat and cool 100 percent of its campus. 58 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 19 Hawaii Workshop October 9-10, 2022 To learn about the potential for geothermal electricity generation, former Hawaii Governor David Ige hosted a workshop for the Heat Beneath Our Feet initiative at Puna Geothermal Venture in October 2023. “Geothermal energy can be a bipartisan solution to our energy challenges across the West and I am proud that Hawaii can be an example to the nation and the world for renewable energy,” Governor Ige said. Located atop the Kapoho Geothermal Reservoir in the East Rift Zone of the Kīlauea volcano, the Puna Geothermal Venture uses mile-deep production wells to bring geothermally heated fluid to the surface and produce steam, which is then used to power turbines that generate 38 megawatts of electricity for the Big Island of Hawaii each year – roughly 10 percent of the community’s use). With the potential for the Kapoho Geothermal Reservoir to produce 200 megawatts of power each year, Ormat Technologies, Inc. plans to expand the plant’s capacity by another 8 megawatts in the coming years. Following a tour of the power plant, experts from DOE, USGS, Los Alamos National Laboratory, and the Colorado Energy Office discussed the potential for geothermally generated electricity to stabilize the grid when the sun isn’t shining or the wind isn’t blowing, as well as to sustainably power emission-reducing technology like carbon capture plants, green hydrogen production, and electric vehicles. By expanding the state’s use of its geothermal resources, Scott Glenn, the Chief Energy Officer for the Hawaii State Energy Office, said Hawaii hopes to become a net-negative carbon emitter by 2045. “[Geothermal energy] can drive our negative emission goals by helping to power direct air capture or some of these other really innovative, cutting-edge technologies that are very expensive right now,” Glenn said. “The low, low price that geothermal can offer, makes them much more viable and puts them on the table.” In addition to the environmental benefits that come with being a net-negative carbon emitter, Paul Thomsen, the Vice President of Business Development at Ormat Technologies, Inc. added that doing so could cut the state’s energy costs. “The energy rate [for geothermal] that’s before the Public Utilities Commission today is 5.7 cents per kilowatt hour,” Thomsen said. “Most western states are 9 to 12 cents. In Hawaii, they’re paying rates as high as 20 cents per kilowatt hour. So geothermal has the ability to save ratepayers in Hawaii $60 million a year in the price of energy.” After exploring the Puna Geothermal Venture in Hawaii, WGA hosted a webinar featuring Glenn, Thomsen, and Nicole Lautze, principal investigator with the Hawaii Groundwater and Geothermal Resources Center at the University of Hawaii. Their conversation focused on the potential for geothermally generated electricity to stabilize the grid and sustainably power emission-reducing technology like carbon capture plants, green hydrogen production, and electric vehicles. During the workshop, participants got a chance to visit Volcanoes National Park, where the power of geothermal was on full display. Workshop participants tour Puna Geothermal Venture in Hawaii, which provides up to 10 percent of the Big Island’s power. 59 20 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE Idaho Workshop October 24, 2022 In 1892, The Boise Warm Springs Water District in Idaho became the first community in the world to tap into a geothermal reservoir for heating purposes. Though the system initially only provided heat to a handful of buildings, today it encompasses four water districts that collectively heat over six million square feet of building space and over 300 homes. Ultimately, it reduces the city’s carbon footprint by approximately 20,000 tons of carbon dioxide per year – the equivalent of removing more than 4,000 cars from the road – and saves the city millions of dollars per year on electricity costs. “You just can’t beat the value of geothermal,” Idaho Governor Brad Little said during the Heat Beneath Our Feet initiative workshop that he hosted in October. While the expansion of the Boise Warm Springs Water District over the last 130 years is a perfect example of how geothermal resources can be leveraged to sustainably meet a community’s heating needs, most areas do not have such easy access to geothermal resources as Boise does. “We know more about the bottom of the ocean or the surface of Mars than we do about what’s underneath half of Nevada,” James Faulds, the Nevada State Geologist and a professor at the University of Nevada Reno’s Bureau of Mines and Geology, told the geothermal experts that attended the workshop. However, by extrapolating subsurface data and drilling technologies from other industries – especially the oil and gas industry – geothermal resource mapping can be radically improved and reduce the financial risk of developing geothermal resources. “Through various kinds of statistical analysis,” Faulds said, “we came up with an algorithm that allows us to go out there and say, ‘that spot in the middle of this valley looks very promising for geothermal.’ Those are hidden resources that our estimates suggest are three-quarters or more than our current resources.” This kind of innovative analysis, Nick Goodman, the CEO of Cyrq Energy, said will drive geothermal development for years to come – especially if geologists like James Faulds get access to better data. “A lot of the geothermal that’s operating today came from data in the ‘70s and ‘80s,” he said. “Conventional geothermal systems of tomorrow are going to come from these hidden systems and industry doesn’t have the ability to do that upfront work, it’s just not set up for it… I guarantee you that 10 years from now we will have operating geothermal plants that are a result of the work these labs are doing.” To continue the conversation after the workshop, WGA hosted a webinar to discuss strategies for improving geothermal resource assessment mapping and project permitting. It featured Claudio Berti, the Director and State Geologist at the Idaho Geological Survey, Lorenzo Trimble, the Geothermal Program Lead at the Bureau of Land Management, and Jon Gunnerson, the Geothermal Coordinator for the City of Boise. Idaho Governor Brad Little discussed the benefits the city has reaped as a result of Boise’s use of its geothermal resources. At Boise’s Warm Springs Water District production wells, system operators demonstrate the importance of materials selection when designing district heating systems. Despite high corrosion rates, Boise has successfully avoided system failures by implementing engineering and technological advancements. 60 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 21 Utah Workshop December 12, 2022 EGS can augment the power potential of existing geothermal reservoirs, or even create geothermal reservoirs where they are not naturally occurring, by improving the permeability of subsurface rock. To advance the development of EGS technologies, DOE funds an underground field laboratory in southwestern Utah, the Frontier Observatory for Research in Geothermal Energy (Utah FORGE). WGA hosted a workshop in Cedar City, Utah, to discuss the potential for this exciting technology and what can be done to make it commercially viable. “Geothermal potential is inexhaustible … but you can’t meet U.S objectives to produce 60 megawatts [of geothermal power] using conventional hot spring systems,” Dr. Joseph Moore, the principal investigator at Utah FORGE, said. “They’re just not big enough. We need to be able to drill everywhere across the country ... and if you want an electrical plant anywhere, you could use EGS.” The key innovation that is required to deploy EGS around the world, Dr. Moore said, is the lack of tools capable of withstanding the sustained heat encountered drilling geothermal wells. “New tools are absolutely required to build an EGS system,” he said. “Our project at Utah FORGE is not to generate electricity, it’s to de- risk these tools and to create the reservoir … to develop the road map so that developers and others in any country can take the road map and build the system.” To learn more about this exciting technology and its potential use across the West, WGA hosted a webinar with Dr. Moore and Jaina Moan, the Director of External Affairs with the Nature Conservancy. They discussed the tools and technology necessary to make EGS commercially viable, including strategies for navigating the permitting process. Colorado Workshop February 24, 2023 The Colorado workshop of the Heat Beneath Our Feet initiative was hosted at the NREL Energy Systems Integration Facility in Golden, Colorado, where Colorado Governor Jared Polis was joined by Alejandro Moreno, the Acting Assistant Secretary of the U.S. Department of Energy and Deputy Assistant Secretary for Renewable Power. During the workshop, experts from Geothermal Rising, Fervo Energy, and BlueGreen Alliance, among others, spoke with utilities about strategies for incorporating more geothermal energy onto the grid. “There’s enormous potential for everything from geothermal passive heating and cooling systems to geothermal electricity,” Governor Polis said. “We want to make sure we have an accelerated process in place, given the nature of the climate emergency, for geothermal to be deployed.” “This needs to be a nationwide approach,” Moreno said. “The federal government has really significant resources to accelerate this transition… but we know that the real work in making this happen is going to take place in states across the West. It’s the decisions made at the state and local level every day that ultimately determine what this energy future looks like.” The biggest hurdle to deployment, utilities said, is a lack of quality subsurface mapping and access to drilling and transmission technology that can effectively work in extreme temperatures. While these issues add a significant layer of cost and complexity to geothermal deployment, industry advocates noted that the 24/7 reliability, long-term cost savings, lack of carbon emissions, and job opportunities for oil and gas workers must be considered in the cost-benefit analysis if this technology is to reach its full potential. “Solar took 30 years to go from super expensive to now being one of the cheapest ways to produce electricity,” Martin Keller, the director of NREL and president of the Alliance for Sustainable Energy, said. “But we don’t have 30 years for some of these new technologies. We only have about 10 to bring these technologies to scale and then deploy.” Topics of discussion at the workshop, including integrating geothermal resources onto the grid, opportunities to transition energy workers to the geothermal sector, and geothermal public education and market development, were highlighted in a subsequent webinar. It featured Amanda Kolker, the laboratory program manager for Geothermal at NREL, Chris Markuson, the Western States Director with the BlueGreen Alliance, and Bryant Jones, the Executive Director of Geothermal Rising. Dr. Martin Keller, Director of NREL, spoke about the need to scale geothermal energy use in a similar fashion to that of wind and solar power. 61 22 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE Utah FORGE June 9, 2023 In June, the initiative returned to Utah, where Colorado Governor Jared Polis was joined by Utah Governor Spencer Cox to visit Utah FORGE. During the visit, Utah FORGE was actively drilling a geothermal well that will reach a total length of 10,700 feet. Once finished drilling through hard crystalline granite, the well will reach a vertical depth of 8,265 feet, where the temperature will be 440 degrees Fahrenheit. “[Utah FORGE] is an essential stepping stone to large scale EGS development” Dr. Joseph Moore, the principal investigator at Utah FORGE, said. “It is being used to build the roadmap for EGS, any developer or country can take this roadmap to build these systems… Worldwide there is no other field-scale facility for EGS research.” The two Governors also visited the Thermo Geothermal Power Plant in Minersville, Utah. This power plant, operated by Cyrq Energy, has a capacity of 14.5 megawatts, generated by three production wells and five injection wells. Thermo supplies electricity to the City of Anaheim, California, through transmission completed by PacifiCorp. Webinars More Than Just Heat While geothermal energy is often associated with electricity generation and heating and cooling needs, its ability to store huge amounts of energy is another critical component of its community benefit. To explore this potential, WGA hosted a webinar with Keith Malone, the public affairs officer for the Hydrogen Fuel Cell Partnership, and Sarah Jewett, the Vice President of Strategy for Fervo Energy. Renewable Energy Incentive Parity The Inflation Reduction Act transitioned current investment tax and production tax credits to a “technology-neutral” tax credit for low-carbon technologies and energy sources. In light of this development, WGA hosted a webinar with Sean Porse, the data, modeling, and analysis program lead at the U.S. Department of Energy, Bryce Carter, the program manager for emerging markets and geothermal at the Colorado Energy Office, and Landon Stevens, the senior program director for the electricity sector at Clear Path Energy, to discuss strategies for leveraging these new tax credits and providing developers with stable, long-term funding. Geothermal Energy at Home GSHPs are a proven technology to heat and cool buildings of many sizes and use. To explore the deployment of geothermal heating and cooling applications, WGA hosted a webinar and was joined by Jeff Hammond, Executive Director of the International Ground Source Heat Pump Association, Heather Deese, Senior Director of Policy & Regulatory Affairs at Dandelion Energy, Ryan Dougherty, President of The Geothermal Exchange Organization, and and Terry Proffer, GeoExchange Designer and Geologist with Major Geothermal. Dr. Joseph Moore, the managing principal investigator at the Utah FORGE lab explained his work on Enhanced Geothermal Systems to Governor Jared Polis and Governor Spencer Cox. Governors Jared Polis and Spencer Cox with WGA’s Executive Director Jack Waldorf and the team from Cyrq Energy at its Thermo Geothermal Power Plant in Utah. 62 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 23 Podcast The Well of the Future: Repurposing Oil and Gas Wells for Geothermal Energy Production With over 80,000 orphaned oil and gas wells in the U.S., repurposing those wells for geothermal energy production would not only save millions of dollars in costs to cap wells, but also reduce the financial burden of drilling a geothermal well. WGA hosted an episode of its Out West podcast series with Johanna Ostrum, the Chief Operating Officer of Transitional Energy; Will Pettitt, the Geothermal Discipline Lead at Baker Hughes; and Will Gosnold, a professor of geological engineering at the University of North Dakota to explore how this could help make both industries more efficient and sustainable. Case Studies Alaska Chena Hot Springs, a remote off-grid community near Fairbanks, Alaska, has successfully implemented a geothermal microgrid that has been operating since 2006. The 680 kW isolated geothermal plant offsets diesel generation, resulting in significant cost savings for the community. In the first year of operation, the plant saved more than $650,000 in diesel fuel costs and reduced electricity costs from $0.30 to $0.05/kWh.14 The geothermal plant utilizes the lowest-temperature geothermal electricity source in the world at 71°C, with power generation enabled by the availability of near-freezing river water and seasonal subzero air temperatures for power cycle heat rejection. Creating a cascade- of-use system, waste heat from the plant is used for district heating, greenhouses, seasonal cooling using absorption chilling, a spa, and other uses. Additionally, the Aurora Ice Museum at Chena Hot Springs utilizes geothermal energy to maintain a year-round frozen environment. An ammonia-water-based absorption chiller runs on 73°C geothermal heat and provides 15 tons of -29°C chilling. The chill brine circulates through an air handler, which cools an annular space in the ice hotel between the ice walls and the external insulation. The success of these geothermal projects in Alaska demonstrates the potential for geothermal energy to provide cost-effective and sustainable energy solutions in remote communities. American Samoa In 2015, DOI awarded American Samoa $1.13 million to support a geothermal drilling program to test for resource potential on the island of Tutuila. The American Samoa Power Authority partnered with DOI office of Insular Affairs and NREL to complete a resource assessment with hopes that geothermal energy could be developed into a baseload energy source for island communities. The drilling program was completed and found that although the islands may have volcanic resources, assessments suggested the resources would be too high risk for geothermal development and electricity generation would not likely be commercially viable with current technologies.15 Arizona Arizona has abundant low- temperature geothermal resources that have been tapped for aquaculture and other direct use applications. Nearly all aquaculture operations in Arizona use geothermally heated water to produce shrimp, tilapia, and catfish. Using waters 20-40°C, farmers are able to grow larger and healthier fish faster; and longer throughout the year. The benefits of controlled rearing temperature have been found to increase growth rates by 50-100%, raising the number of harvests per year, resulting in increased profits. California California’s successful geothermal energy industry can be attributed to a combination of favorable geologic conditions, supportive policies, and market demand. California’s unique geologic features, characterized by high volcanic and tectonic activity, provide the foundation for some of the oldest geothermal installations in the U.S. The Geysers, located in the Mayacamas Mountains, has been operating since the 1960s and is the largest geothermal field in the world. Its 18 geothermal power plants and more than 350 wells use dry steam cycles to continuously generate more than 800 MW of electricity.16 Geothermal resources are also abundant in Imperial Valley, which has become a testbed for research and technology testing and is being developed for power production as well. Salton Sea is the site of 11 commercial-scale geothermal power 63 24 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE plants, as well as a lithium research site funded by DOE. In partnership with Lawrence Berkeley National Lab and Geologica Geothermal Group, the project will seek to characterize and quantify lithium deposits in the hypersaline geothermal brine, providing additional value to the area’s vast geothermal resources. Community education and engagement has helped spur support for geothermal development throughout the region, bringing in tax dollars and good paying jobs to a previously disadvantaged community. In addition to significant resources, California has implemented supportive policies that have created a favorable environment for geothermal energy development. Recent bills passed by the California Legislature codified the state’s goal of achieving 90% renewable energy and zero-carbon electricity by 2035, creating new opportunities for renewable energy projects including geothermal. The California Energy Commission and the California Public Utilities Commission have also implemented programs to reduce resource risk and encourage the growth of the geothermal industry such as loan guarantees, low-interest loans, and grants for exploration and drilling. The expensive costs of electricity in the state have helped increase the competitiveness of geothermal as a power source. Throughout California, market demand for geothermal energy has grown due to the rising demand for power purchase agreements (PPAs) from community choice aggregators (CCAs). Since 2020, California’s CCAs have been key drivers in the growth of the geothermal industry, committing to long term agreements with geothermal energy suppliers like Cyrq, Ormat, Controlled Thermal Resources, and Calpine to generate nearly 300 MW of new-build resources in the next decade. Colorado For decades, Colorado has leveraged geothermal resources for direct use applications and residential heating and cooling. Geo-exchange installations like those at Colorado Mesa University have been effective at reducing energy costs and continue to be installed throughout the state. In recent years, Colorado has become a leading proponent for geothermal energy, creating state programs and offices to bolster the development and implementation of geothermal statewide. In 2023, Governor Polis signed a regulatory pathway for gas utilities to develop thermal energy networks and, working with the legislature, passed an estimated $140 million in refundable tax credits for geothermal energy over the next ten years, including $35 million for a merit-based state investment tax credits for geothermal electricity projects. In 2022, DOE awarded a $9 million grant to Occidental Petroleum to test geothermal drilling technologies in the Denver- Julesberg Basin through the Geothermal Limitless Approach to Drilling Efficiencies (GLADE) project. Partnering with NREL and Colorado School of Mines, the project will drill twin, high temperature geothermal wells using existing and innovative drilling technologies to drill deeper and at higher temperatures at a faster rate, ultimately seeking to increase daily drilling rates by at least 25%. The twin wells system allows for drilling speeds to be compared and validated for a multitude of systems, including EGS. Governor Jared Polis toured the facilities at the National Renewable Energy Laboratory in February, where he was able to see several renewable energy demonstration projects and learn how they compare to geothermal energy. 64 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 25 Guam A team from NREL and the U.S. Navy’s Geothermal Program Office conducted a reconnaissance assessment on the geothermal potential in Guam in 2010. Although Guam has no obvious surface features suggesting geothermal potential and had never been explored for geothermal resources, researchers located a steam vent and hot water well, suggesting the presence of geothermal fluids in the subsurface.17 Using LIDAR technology, the Navy conducted additional assessments and provided funding to drill temperature gradient wells in the locations identified for geothermal potential. To date, no commercial or large-scale geothermal projects have been developed in Guam. Hawaii In 2008, the State of Hawaii, in partnership with DOE, signed a Memorandum of Understanding to collaborate on reducing the state’s dependence on imported fossil fuels. This MOU, which was recommitted in 2014, launched the Hawaii Clean Energy Initiative, which created ambitious energy and climate goals and made the state to be the first to commit to 100% renewable energy by 2045. Today, renewable portfolio standards and net negative emissions targets are central to Hawaii’s clean energy policy. The RPS established in 2015, aims for 40% net electricity generation by 2030 and The 2018 Zero Emissions Clean Economy Target revised previous statues to target net negative carbon emissions statewide by 2045. The state continues to rapidly move towards these goals and since establishing the renewable portfolio standard in 2015, usage of renewable energy usage has nearly doubled statewide. Hawaii’s unique geography and geologic features make geothermal an especially attractive and viable renewable energy option. Hawaii’s electricity system is comprised of six standalone grids, independently creating and delivering power for each island. Currently, commercial scale geothermal electricity generation is only operational on Hawaii Island (at Puna Geothermal Venture) and accounts for roughly 18% of total electricity consumption on the island. At current capacity, Hawaii Island’s grid is the most manageable for geothermal, but ongoing research and development efforts by the state, as well as private developers, are investigating ways to develop geothermal resources on other islands, especially on Oahu, the population center of the state with the highest energy needs. Idaho Idaho’s volcanic landscape makes it an ideal location for geothermal energy development. The state has over 1,000 wells and 200 springs that can be used to extract geothermal energy and has several commercial geothermal power plants, including the Raft River Enhanced Geothermal System Project, which provides about 11 MW of net capacity. In addition to generating electricity, geothermal energy is also used to heat buildings and grow plants. Boise is home to the nation’s first geothermal district heating system, and the city’s geothermal heating utility delivers naturally heated water through over 20 miles of pipeline to more than 6 million square feet of building space. The Idaho Statehouse is the only geothermally heated capitol building in the nation, and district heating is also currently being used for space heating at several of the Boise State University campus buildings. Kansas GSHPs are deployed in a variety of commercial and residential buildings across the state: In Lawrence, the Castle Tea Room was retrofitted with a GSHP system during renovation to provide heating and cooling, as well as hot-water radiant floor heating; the Regional Correctional Facility at Fort Leavenworth includes a GSHP system with 480 bore holes drilled up to 280 feet deep, providing heating, cooling, and refrigeration; Greensburg, Kansas, which was devastated by a tornado in 2007, has been rebuilding with an emphasis on green technology, including GSHP systems in several new or rebuilt homes and buildings, such as a school campus, city hall, and the Kiowa County Courthouse.18 A lava flow from the eruption of Kilauea in 2018 is visible beyond Puna Geothermal Venture. 65 26 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE Montana Montana State University researchers helped pilot a new type of geothermal heating and cooling system that could reduce the cost of the technology. The team of engineering faculty and students guided the installation of an innovative closed-loop piping configuration as part of a major expansion at a rural school in Winifred. The closed-loop configuration utilizes shallower geothermal boreholes than a traditional system, resulting in shorter drilling periods. Since drilling is typically the biggest expense associated with geothermal heating and cooling systems, the technique could lead to significant cost savings. If the cost savings in installation significantly overcome any reduction in energy performance from the shallower boreholes, there could be a wide range of applications for this new type of geo-exchange system, including residential development or in places where deep boreholes are prohibitive due to shallow aquifers or other limitations. Cross-industry partnerships and collaboration between trade workers, engineers, geothermal designers, and academics facilitated innovative technology design, ultimately reducing costs and demonstrating how a traditionally expensive system can be viable in a rural and underserved community.19 Nebraska Located in Lincoln, The Bridges is the state’s first fully geothermal residential neighborhood. The development has six large geothermal ponds, which provide the foundation for the geothermal heat exchange unit used in each home. Residents are required to utilize geothermal heating and cooling and the geothermal transfer lines that connect homes to the cooling unit are included in the price of the house. Homeowners save between 30-70% on energy costs and use significantly less electricity. Nevada As one of the top producers of geothermal energy in the country, Nevada has a well-established geothermal industry and strong industry expertise. This technical expertise and a streamlined state permitting process allow projects in Nevada to advance relatively quickly, making it an attractive location for both startups and established developers. Collaboration and robust stakeholder engagement have also been instrumental in the success of geothermal energy in Nevada. The industry has worked closely with government agencies, local communities, and research institutions to develop projects that are socially responsible and environmentally sustainable. Located in Churchill County, Enel’s Stillwater Triple-Hybrid Plant is a first of its kind facility, combining binary cycle geothermal power with solar photovoltaic and solar thermal. Enel’s collaborative approach from the outset was a key factor in the project’s success. Project proponents held public forums to educate local communities, address concerns, and incorporate feedback. Partnering with the Desert Research Institute, extensive environmental studies were conducted to understand wildlife, vegetation, and environmental risks and to establish a mitigation plan. Since being commissioned in 2009, Stillwater has provided hundreds of jobs, millions of dollars in local investment and has generated enough electricity to power more than 17,000 homes annually.20 Electricity generated at this facility is also used to power Wynn Las Vegas, made possible by a PPA signed in 2018 with the resort. Additionally, Nevada has favorable policies and incentives that have supported the growth of the geothermal industry. For example, the state offers a 55% property tax abatement for geothermal power systems with at least 10 MW capacity. Nevada has also focused on streamlining administrative processes and permitting authorities for developing geothermal resources, with state-level geothermal legislation and policy development active in the state. New Mexico With the sixth-highest geothermal potential in the U.S., New Mexico has attracted the interest of developers who are actively looking to develop the resource. In 2021, Canadian company Eavor successfully drilled an 18,000-foot well bore in southwest New Mexico using their new technology, proving that it can potentially access deep subsurface hot-rock formations that offer massive amounts of clean, renewable energy. The completed well is the deepest hole ever drilled in New Mexico and has demonstrated enormous potential for unleashing a virtually unlimited source of clean energy for electricity generation and for heating and cooling.21 Beyond demonstrating drilling potential, Eavor’s operation exemplified the lucrative employment opportunities for oil and gas industry workers in geothermal. Two conventional drilling rigs were used on this project, employing dozens of oil and gas workers. Partnerships and investments from drilling rig operating companies ensure stability and provides continual opportunity for workers. In 2022, the state legislature formed a geothermal working group, comprised of private developers and other stakeholders, to explore local development potential and recommend action to increase investments in both geothermal electricity generation and heating and cooling. Work group findings may pave the way for future legislation to help further encourage geothermal development across New Mexico. 66 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 27 North Dakota A team from the University of North Dakota introduced a geothermal energy project to the community of New Town. The project proposal, which was recognized by DOE GTO’s Geothermal Collegiate Competition, involves using existing gas wells to draw hot water from deep aquifers, generating geothermal energy to heat buildings, grow food, and create jobs.22 The project sought to raise awareness about geothermal district energy generation and to provide a forum for discussion among local tribal leaders to consider renewable energy sources like geothermal. Project proponents engaged with members of Mandan, Hidatsa, and Arikara Nations to understand the cultural and historical contexts of energy in the area and to design a project to maximize community impact. Meaningful tribal consultation in proposal development sparked a new interest in geothermal amongst some New Town tribal leadership. Northern Mariana Islands Initial resource assessments conducted in 2008 suggest that there is significant potential for geothermal energy in the Northern Mariana Islands. On South Pagan, the size of the hydrothermal reservoir and the chemistry of the hot springs suggests a geothermal reservoir exists with an estimated generating capacity of 50-125 MW. On other islands like Saipan, deep faulting may allow deep thermal waters to migrate upwards, creating opportunities for low and medium temperatures resources.23 Deeper temperature gradient wells would be necessary to determine full potential for geothermal power generation. Oklahoma As part of DOE’s Wells of Opportunity program, researchers at the University of Oklahoma were awarded $1.7 million in 2022 to repurpose abandoned oil and gas wells for geothermal energy. The project uses four hydrocarbon wells to produce geothermal energy for an elementary and middle school in nearby Tuttle.24 The benefit from recycling existing oil and gas well infrastructure is expected to create considerable savings for the schools. Retired oil wells may give Oklahoma significant advantage in developing geothermal assets, given the risk, cost, and environmental impact of drilling geothermal wells is significantly reduced by utilizing retired or abandoned infrastructure. Of the many retired wells in Oklahoma, a large number are believed to be viable for geothermal energy and in many cases, are located near schools, farms, factories, and other structures that could be beneficiaries of the energy produced. Oregon In recent years, Oregon has seen significant growth in geothermal energy production, in particular for direct use and heating and cooling. In 2020, Oregon produced 2.9 trillion Btu of geothermal energy, with 1.2 trillion Btu used for heating and cooling residential, commercial, and industrial spaces.25 The city of Klamath Falls has long utilized geothermal heat sources to heat buildings, residences, pools, and sidewalks. Other examples of direct use of geothermal heat in the state include drying agricultural products, aquaculture, heating greenhouses, swimming pools and hot springs resorts. Oregon has more than 2,000 thermal wells and springs delivering direct heat to buildings, communities, and other facilities, demonstrating the versatility of geothermal energy as a renewable source of heat. Beyond direct use applications, Oregon’s volcanic geology has supported geothermal power production for more than a decade. Since 2010, AltaRock Energy’s Newberry EGS Demonstration project, NEWGEN, has conducted ongoing research to stimulate fracture zones, demonstrate diverter technology, and develop a conceptual model of the EGS reservoir. The project site, located on the western flank of Newberry Volcano, is one of the largest geothermal heat reservoirs in the West and could generate up to 10 GW of electricity using super hot rock extraction technology.26 If successful, NEWGEN would likely become world’s first super hot rock demonstration project and could lead to the construction of a 35MW binary cycle geothermal plant that could generate electricity to be exported or used to power surrounding communities. Oregon’s success in geothermal energy has been bolstered by state- level financial assistance programs, such as property tax exemptions for properties equipped with alternative energy systems, as well as programs that support the development of geothermal heating systems. Additionally, Oregon’s designated authority from the Environmental Protection Agency to issue Class V injection permits has been effective at expediting the exploration and development process. South Dakota Geothermal district heating is being used in various parts of South Dakota for space heating. In Midland, a municipal well drilled in 1969 supplies hot water to heat approximately local buildings and spaces including schools, churches, campgrounds, downtown municipal buildings, residential buildings and homes. This system is relatively low maintenance and requires few personnel to maintain, making it a cost-effective solution for a rural town.27 67 28 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE Texas Since 2021, the Texas geothermal industry has seen rapid growth, with more than a dozen geothermal startups establishing themselves in the state. Many of these ventures are led by oil and gas industry veterans and have leveraged that extensive expertise to develop innovative technology solutions and form valuable partnerships. Sage Geosystems and the Bureau of Economic Geology at the University of Texas at Austin launched a joint venture aimed at developing a prototype using advances in oil and gas drilling technologies to drill multiple wells to produce electricity by circulating a fluid deep in the earth to absorb heat from the magma. The 2021 Phase I feasibility study used nearly 50-year- old abandoned oil and gas wells in South Texas to test the model. The project is designed to demonstrate geothermal ability to provide constant, load-following power generation in an isolated microgrid at Ellington Field Joint Reserve Base and meet 100% of the Base’s current electricity needs.28 Phase I and II of the project were funded through a Small Business Technology Transfer award, under the Air Force Innovation Program and if successful, Sage Geosystems is expected to build the first prototype geothermal project at Ellington. Utah Situated within the Basin and Range Province, Utah provides immense potential for not just conventional hydrothermal systems, but also EGS and other innovative technologies. Rapid and innovative development has been bolstered by supportive state policies and initiatives. In the early 2000s, the state established a Utah Geothermal Working Group to facilitate collaboration between industry stakeholders, regulators, and local communities, fostering a supportive environment for geothermal projects. Today, recent programs and policies aimed at incentivizing geothermal development have spurred advancements in the state. The Utah Renewable Energy Systems Tax Credit provides financial incentives for the installation of geothermal systems, reducing the upfront costs for property owners. In addition to federal investments such as Utah FORGE, private developers continue to site projects in Utah, most recently, Thermo, a 14MW generating facility operated by Cyrq. Washington Washington has potential for geothermal energy production due to its location along the Cascade Range. However, the low cost of electricity generated from the state’s abundant hydropower has limited the development of geothermal resources. In addition, there are challenges associated with geothermal exploration in the state, such as the lack of high-temperature resources.29 In 2010, Washington Public Utilities District conducted an exploratory drilling study in Snohomish County to test geothermal potential. Exploratory efforts ceased in 2012 after drilling hit bedrock. In 2014 and 2017, DOE awarded funds to the Washington Geologic Survey to validate additional areas of geothermal potential; WGS published these results in a favorability map. Most of Washington’s urban areas like Tacoma and Seattle lie outside of feasibility areas for potential geothermal electricity production. However, GSHPs in these areas capitalize on the regions’ low- temperature geothermal resources. Wyoming In 2022, Petrolern published a study for the Wyoming Energy Authority assessing the feasibility of geothermal opportunities in Wyoming. The study found that Wyoming’s geothermal resources are generally moderate to low temperatures and situated in localized regions throughout the state. Low temperature geothermal utilization technologies such as geothermal heat pumps, direct use heating, and Organic Rankine Cycle electricity generation are applicable to these resources. Financial analysis showed that new drilling of prospects has low commercial viability, while repurposing existing wells has moderate viability. Synthetic Geothermal Reservoir has potential for high commercial viability, but additional work is needed to fully assess its economic viability.30 Though protected from development, Wyoming’s most notable geothermal feature, Yellowstone National Park, continues to be a significant economic source for the state, bringing in millions of tourism dollars annually. Governor Jared Polis and Governor Spencer Cox get an up-close tour of Cyrq Energy’s Thermo Geothermal Power Plant in Utah. 68 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 29 Sponsor Acknowledgments INITIATIVE SIGNATURE SPONSOR INITIATIVE PARTNERS INITIATIVE AFFILIATES 69 30 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE Participant Acknowledgements Colorado Mesa University Kickoff Tour Grand Junction, Colorado September 27, 2022 • The Honorable Jared Polis, Governor of Colorado • Amanda Kolker, Geothermal Program Manager, National Renewable Energy Laboratory • Jennifer Livermore, Senior Geothermal Project Analyst, U.S. Department of Energy Geothermal Technologies Office • Brad McCloud, Area Manager, Community Relations Western Colorado, Grand Junction Lions Club, Xcel Energy • Lorenzo Trimble, National Geothermal Program Lead, Bureau of Land Management • Lyn White, Director of Government Relations, Western Governors’ University CMU Recap Webinar October 6, 2022 • Kent Marsh, Vice President for Capital Planning, Sustainability, and Campus Operations, Colorado Mesa University • Will Toor, Executive Director, Colorado Energy Office Hawaii Workshop October 9-10, 2022 • The Honorable David Ige, Governor of Hawaii • William Aila, Chairman, Hawaiian Homelands Commission • Erick Burns, National Geothermal Resources Investigations Project Leader, U.S. Geological Survey • Suzanne Case, Chairperson, Hawaii Department of Land and Natural Resources • Allen Clarkson, Director of Government Relations, Western Governors Association • Luke Frash, Research Scientist, Los Alamos National Laboratory • Scott Glenn, Chief Energy Officer, Hawaii State Energy Office • Nick Goodman, Chief Operating Officer, Cyrq Energy • Keith Hay, Senior Director of Policy, Colorado Energy Office • Nicole Lautze, Principal Investigator, Professor, Hawaii Groundwater and Geothermal Resources Center • Jennifer Livermore, Senior Geothermal Project Analyst, U.S. Department of Energy Geothermal Technologies Office • Melissa Miyashiro, Executive Director, Blue Planet Foundation • Sabrina Nasir, Senior Special Assistant, Hawaii Governor David Ige • Jim Ogsbury, former Executive Director, Western Governors’ Association • Riley Saito, Energy Specialist, County of Hawaii • Monique Schafer, Renewable Energy Project Specialist, Hawaii State Energy Office • Paul Thomsen, Vice President of Business Development, Ormat Technologies • Michael Turner, Director of Building Innovation and Energy Finance, Colorado Energy Office • Lyn White, Director of Government Relations, Western Governors’ University Hawaii Recap Webinar October 20, 2022 • Scott Glenn, Chief Energy Officer, Hawaii State Energy Office • Nicole Lautze, Principal Investigator, Professor, Hawaii Groundwater and Geothermal Resources Center Idaho Workshop Boise, Idaho October 24, 2022 • The Honorable Brad Little, Governor of Idaho • Eric Anderson, President, Idaho Public Utilities Commission • John Anderson, Economic Development and Innovation Advisor, Idaho Power Company • Claudio Berti, Director and State Geologist, Idaho Geological Survey • Erick Burns, National Geothermal Resources Investigations Project Leader, U.S. Geological Survey • Alexis Clark, Hydrogeologist, Idaho Geological Survey • Grant Cummings, Policy Associate, ClearPath • Jared Dalebout, Geologist, Bureau of Land Management • Patrick Dobson, Geothermal Systems Programs Lead, Lawrence Berkeley National Laboratory • Juan Escobar, Head of Geoscience, Eagle Ford Asset, BPX Energy • Jim Faulds, Nevada State Geologist, Professor, Nevada Bureau of Mines and Geology, University of Nevada, Reno • Nick Goodman, Chief Executive Officer, Cyrq Energy • Richard Horsley, Energy Manager, U.S. Air Force • Bryant Jones, Executive Director, Geothermal Rising • Jennifer Livermore, Senior Geothermal Project Analyst, U.S. Department of Energy Geothermal Technologies Office • George Lynch, Legal Counsel, Idaho Governor’s Office of Energy and Mineral Resources 70 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 31 • Travis McLing, Research Scientist, Idaho National Laboratory • Andrew Mendoza, Deputy Base Civil Engineer, United States Air Force 366th Civil Engineer Squadron • Roy Mink, Geohydrologist, Mink Geo-Hydro Inc. • Scott Nichols, Regulatory Affairs Manager, Ormat Technologies • Jim Ogsbury, former Executive Director, Western Governors’ Association • Richard Stover, Administrator, Idaho Governor’s Office of Energy and Mineral Resources • Mick Thomas, Division Administrator, Minerals, Navigable Waterways, Oil and Gas, Idaho Department of Lands • Lorenzo Trimble, National Geothermal Program Lead, Bureau of Land Management Idaho Recap Webinar November 7, 2022 • Claudio Berti, Director and State Geologist, Idaho Geological Survey • John Gunnerson, Geothermal Coordinator, City of Boise • Lorenzo Trimble, National Geothermal Program Lead, Bureau of Land Management Utah Workshop Cedar City, Utah December 12, 2022 • The Honorable Spencer Cox, Governor of Utah • Phillip Ball, Chief of Geothermal Innovation, Clean Air Task Force • Bryce Carter, Emerging Markets Program Manager, Geothermal, Colorado Energy Office • Patrick Dobson, Geothermal Systems Program Lead, Lawrence Berkeley National Laboratory • Joel Edwards, Chief Technical Officer, Zanskar Energy • Robin Hansen, Petroleum Engineer, Geothermal Program Lead, Bureau of Land Management • Amanda Kolker, Geothermal Program Manager, National Renewable Energy Laboratory • Stephen Lisonbee, Rural Advisor to Governor Cox • Travis McLing, Research Scientist, Idaho National Laboratory • Jaina Moan, External Affairs Director, The Nature Conservancy • Joseph Moore, Principal Investigator, Utah FORGE, EGI, University of Utah • Johanna Ostrum, Chief Operating Officer, Transitional Energy • Jeffrey Sallow, Geologist, U.S. Forest Service • Greg Todd, Director, Utah Governor’s Office of Energy Development • Mike Visher, Administrator, Nevada Division of Minerals Utah Recap Webinar December 19, 2022 • Joseph Moore, Principal Investigator, Utah FORGE, EGI, University of Utah • Jaina Moan, External Affairs Director, The Nature Conservancy NREL Workshop Golden, Colorado February 24, 2023 • The Honorable Jared Polis, Governor of Colorado • John Anderson, Economic Development and Innovation Advisor, Idaho Power Company • Koenraad Beckers, Research Engineer, Energy Conversion and Storage Systems Center, National Renewable Energy Laboratory • Kelly Blake, Division Director, President, Navy Geothermal Program, Geothermal Rising • Lauren Boyd, Acting Director, U.S. Department of Energy Geothermal Technologies Office • Bryce Carter, Emerging Markets Program Manager, Geothermal, Colorado Energy Office • Cynthia Connor, Policy Director, Offsets and Emerging Technology, Chevron New Energies • Kristin Elowe, Planning and Environmental Coordinator, Bureau of Land Management • Juan Escobar, Head of Geoscience, BP • Neil Ethier, Vice President of Business Development, Eavor • Jonathan Ho, Energy System Modelling Engineer, National Renewable Energy Laboratory • Joseph Islas, Geologist, Bureau of Land Management • Sarah Jewett, Vice President of Strategy, Fervo Energy • Bryant Jones, Executive Director, Geothermal Rising • Kimilia Jones, Commercial Manager, Chevron New Energies • Amanda Kolker, Geothermal Program Manager, National Renewable Energy Laboratory • Justin LeVeque, Section Chief, Research and Emerging Issues, Colorado Public Utilities Commission • Jennifer Livermore, Senior Geothermal Project Analyst, U.S. Department of Energy Geothermal Technologies Office • Matt Mailloux, Policy Advisor, ClearPath • Chris Markuson, Western States Director, BlueGreen Alliance • Travis McLing, Research Scientist, Idaho National Laboratory • Alejandro Moreno, Acting Assistant Secretary, Office of Energy Efficiency and Renewable Energy, U.S. Department of Energy • Johanna Ostrum, Chief Operating Officer, Transitional Energy • Amy Robertson, Senior Manager, State Government Relations and External Affairs, Tri-State Generation and Transmission Association • Michelle Slovensky, Intelligent Campus Program Manager, National Renewable Energy Laboratory 71 32 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE • Faith Smith, Researcher, Strategic Energy Analysis Center, National Renewable Energy Laboratory • Mark Silberg, Special Advisor on Climate and Energy, Colorado Governor Jared Polis • Will Toor, Executive Director, Colorado Energy Office • Lorenzo Trimble, National geothermal Program Lead, Bureau of Land Management • Kathryn Valdez, Director, Carbon-Free Technology Policy, Xcel Energy • Jack Waldorf, Executive Director, Western Governors’ Association NREL Recap Webinar March 2, 2023 • Bryant Jones, Executive Director, Geothermal Rising • Amanda Kolker, Geothermal Program Manager, National Renewable Energy Laboratory • Chris Markuson, Western States Director, BlueGreen Alliance Webinar: More Than Just Heat January 23, 2023 • Sarah Jewett, Vice President of Strategy, Fervo Energy • Keith Malone, Public Affairs Officer, Hydrogen Fuel Cell Partnership Webinar: Renewable Energy Incentive Parity March 29, 2023 • Bryce Carter, Emerging Markets Program Manager, Geothermal, Colorado Energy Office • Sean Porse, Data, Modelling, and Analysis Program Lead, U.S. Department of Energy Geothermal Technology Office • Landon Stevens, Senior Program Director, Electricity, ClearPath Webinar: Geothermal Energy at Home May 3, 2022 • Jeff Hammond, Executive Director, International Ground Source Heat Pump Association • Heather Deese, Senior Director of Policy and Regulatory Affairs, Dandelion Energy • Ryan Dougherty, President, Geothermal Exchange Organization (GEO) • Terry Proffer, GeoExchange Designer and Geologist, Major Geothermal. Podcast: The Well of the Future: Repurposing Oil and Gas Wells for Geothermal Energy Production November 2022 • Will Gosnold, Professor of Geological Engineering, University of North Dakota • Will Pettitt, Geothermal Discipline Lead, Baker Hughes • Johanna Ostrum, Chief Operating Officer, Transitional Energy Survey Respondents • Anzar Consulting • B2E Consultation • Bain Geophysical Services, Inc. • Baker Hughes • Baseload Power US • Billings County, North Dakota • California Department of Conservation • California Geothermal Heat Pump Association • Chaffee County, Colorado • City of Salida, Colorado • Clean Air Task Force • ClearPath • Colorado Public Utilities Commission • Colorado State University • Dandelion Energy • Deerstone Consulting • Eavor Technologies Inc. • Egg Geo LLC • Fervo Energy • Fire and Ice Geothermal Heating and Cooling LLC • Geopoint Generation • Geothermal Exchange Organization • Geothermal System Designer • Gunnison County, Colorado • Halliburton • IGSHPA • Lake County Resources Initiative • Lawrence Berkeley National Laboratory • Murasaki Resort • National Renewable Energy Laboratory • National Wild Turkey Federation • Natural Resources Defense Council • Nevada Department of Wildlife • Nu-Tech Heating & Cooling LLC • Ormat Technologies • PB USA • Petrolern • Poudre Valley REA • Quaise Energy • Rio Grande Geothermal • Southwest Energy Efficiency Project • Stevens County, Washington • Sustainable Transportation and Energy Holdings • Tacoma Power • Texas Geothermal Energy Alliance • Theodore Roosevelt Conservation Partnership • Transitional Energy • U.S. Geological Survey • United Association • United Power • University of Twente • Vallourec USA Corporation • Washington Department of Natural Resources • Washington Geological Survey • Xcel Energy 72 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 33 1 United States Geological Survey (USGS). “The Geysers Geothermal Field.” U.S. Geological Survey, 2023, www.usgs.gov/volcanoes/ clear-lake-volcanic-field/geysers-geothermal-field 2 U.S. Department of Energy. “Geothermal FAQs.” U.S. Department of Energy, Energy Efficiency & Renewable Energy, 2023, www.energy. gov/eere/geothermal/geothermal-faqs 3 U.S. Department of Energy. “GeoVision: A Vision for the Future of Geothermal Energy in the United States.” 2019. www.energy.gov/ eere/geothermal/articles/geovision-full-report.pdf 4 U.S. Energy Information Administration (EIA). “Residential Energy Consumption Survey.” 2021. https://www.eia.gov/consumption/ residential/ 5 U.S. Energy Information Administration (EIA). “Geothermal Power.” 2022. www.eia.gov/energyexplained/geothermal/geothermal- power.php 6 U.S. Department of Energy. “GeoVision: A Vision for the Future of Geothermal Energy in the United States.” 2019. www.energy.gov/ eere/geothermal/articles/geovision-full-report.pdf 7 National Renewable Energy Laboratory (NREL). “2021 U.S. Geothermal Power Production and District Heating Market Report.” NREL, July 2021. https://www.nrel.gov/docs/fy21osti/78291.pdf 8 Gagnon, P. et al. (2022) National Renewable Energy Laboratory (NREL), 2022 Standard Scenarios Report: A U.S. Electricity Sector Outlook. Available at: https://www.nrel.gov/docs/fy23osti/84327.pdf (Accessed: 01 June 2023). 9 National Renewable Energy Laboratory (NREL). “2021 U.S. Geothermal Power Production and District Heating Market Report.” NREL, July 2021. https://www.nrel.gov/docs/fy21osti/78291.pdf 10 U.S. Department of Energy. “Enhanced Geothermal Systems (EGS): Unlocking the Power of Geothermal Energy.” U.S. Department of Energy, September 2022, www.energy.gov/sites/default/files/2022-09/EERE-ES-Enhancing-Geothermal-508-v2.pdf 11 IEA, Actual and forecast onshore wind costs, 2016-2025, IEA, Paris https://www.iea.org/data-and-statistics/charts/actual-and- forecast-onshore-wind-costs-2016-2025, IEA. License: CC BY 4.0 12 Energy Efficiency & Renewable Energy. “Choosing and Installing Geothermal Heat Pumps.” U.S. Department of Energy, U.S. Department of Energy, 11 Jan. 2023, www.energy.gov/energysaver/choosing-and-installing-geothermal-heat-pumps 13 Stringfellow, W.T., and P.F. Dobson. “Technology for the Recovery of Lithium from Geothermal Brines.” Energies 14, no. 20 (2021): 6805. doi:10.3390/en14206805. 14 Robins, Jody, et al. “2021 U.S. Geothermal Power Production and District Heating Market Report.” National Renewable Energy Laboratory, U.S. Department of Energy, July 2021, www.nrel.gov/docs/fy21osti/78291.pdf 15 Ness, J. Erick, et al. “Energy Action Plan - National Renewable Energy Laboratory (NREL).” National Renewable Energy Laboratory, U.S. Department of Interior Office of Insular Affairs, Sept. 2016, www.nrel.gov/docs/fy16osti/67091.pdf 16 United States Geological Survey. “The Geysers Geothermal Field.” U.S. Geological Survey, 2023, www.usgs.gov/volcanoes/clear- lake-volcanic-field/geysers-geothermal-field.ii 17 Baring-Gould, Ian, et al. “Guam Initial Technical Assessment Report - National Renewable Energy...” National Renewable Energy Laboratory , U.S. Department of Interior Office of InsularAffairs , Apr. 2011, www.nrel.gov/docs/fy11osti/50580.pdf References 73 34 • 2023 THE HEAT BENEATH OUR FEET INITIATIVE 18 Evans, Catherine. “Geothermal Energy and Heat Pump Potential in Kansas.” KGS Pub. Inf. Circ. 31Playas in Kansas and the High Plains, Kansas Geologic Survey, Apr. 2006, www.kgs.ku.edu/Publications/PIC/pic31.html 19 Amende, Kevin. “MSU Researchers Help Pioneer Geothermal Technology That Could Reduce Cost.” Montana State University, 18 Nov. 2021, www.montana.edu/news/21624/msu-researchers-help-pioneer-geothermal-technology-that-could-reduce-cost 20 Enel Green Power. “Stillwater Triple Hybrid Plant, USA.” Enel Green Power, https://www.enelgreenpower.com/our-projects/ operating/stillwater-hybrid-plant 21 Robinson-Avila, Kevin. “There’s Almost Unlimited Clean, Geothermal Energy under Our Feet. New Tech Could Help Unleash That Potential in New Mexico.” Albuquerque Journal, 28 Jan. 2023, www.abqjournal.com/2568570/theres-an-almost-unlimited-amount-of- clean-geothermal-energy-under-our-feet-new-tech-could-help-unleash-that-potential-in-new-mexico.html 22 Murphy, Connor. “New Idea for New Town, N.D.: Geothermal Energy.” UND Today, University of North Dakota, 1 Nov. 2022, blogs.und. edu/und-today/2022/11/new-idea-for-new-town-n-d-geothermal-energy/ 23 Mink, Leland Roy, et al. Geothermal Resource Assessment of the Commonwealth of the Northern ..., Apr. 2012, www.geothermal- energy.org/pdf/IGAstandard/WGC/2010/1635.pdf 24 Warren, Sarah. “OU Researchers Receive Department of Energy Grant to Pioneer Demonstration and Repurposing of Retired Oil Wells into Geothermal Wells.” The University of Oklahoma, 24 Jan. 2022, www.ou.edu/mcee/news/news-releases/ou-researchers- receive-department-of-energygrant-to-pioneer-dem 25 Oregon Department of Energy (OR DOE). 2022 Biennial Energy Report: Energy by the Numbers. Oregon Department of Energy, 2022, www.oregon.gov/energy/Data-and-Reports/Documents/2022-BER-Energy-by-the-Numbers.pdf 27 Boyd, Tonya. “Geothermal Use in the Dakotas. Geo-Heat Center Quarterly Bulletin, Vol. 31, No. 1 (Complete Bulletin). A Quarterly Progress and Development Report on the Direct Utilization of Geothermal Resources.” Geo-Heat Center Quarterly Bulletin, Oregon Institute of Technology , 1 May 2012, www.osti.gov/servlets/purl/1209221 28 Sage Geosystems. “Sage Geosystems Featured in Canary Media Article, “This Texas geothermal startup is storing energy in the ground.”” Sage Geosystems, 2023, https://www.sagegeosystems.com/sage-geosystems-featured-in-canary-media-article-this-texas- geothermal-startup-is-storing-energy-in-the-ground/ 29 Steely, Alex. Fact Sheet Washington Geological Survey Geothermal Resources in ... - DNR, Washington Department of Natural Resources, 2023 www.dnr.wa.gov/publications/ger_fs_geothermal_resources.pdf 30 Petrolern LLC. Final Report of Geothermal Resource and Applicable Technology for Wyoming, Wyoming Energy Authority , July 2022, wyoenergy.org/wpcontent/uploads/2022/11/Petrolern_FinalReportWYGeothermalPotentialAndApplicableTechnology_ FINAL1Aug2022.pdf 74 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 35 75 2023 THE HEAT BENEATH OUR FEET INITIATIVE • 36 1700 Broadway, Suite 500 Denver, CO 80202 • 303.623.9378 westgov.org 76 U.S. Operations 9657 Lily Garden Ct., South Jordan, UT 84905 January 31, 2024 Cameron Millard Environmental Sustainability Energy Efficiency Coordinator Town of Vail Vail, CO 81657 Subject: Drilling and Thermal Conductivity Test Report, Vail, Colorado Dear Mr Millard: This report contains drilling data, thermal conductivity data, and data analysis for the test borehole drilled and completed in Vail, Colorado during the period of November 28-29, 2023. The purpose of this borehole was to note variations in geology and drilling conditions as well as collecting deep earth temperature and thermal conductivity data. The borehole was drilled in the location that was directed by the design team and Vail City, adjacent to Ford Park (see Figure 1). Drilling Results A description of the subsurface materials is presented on the borehole log provided in Attachment A. The borehole was drilled to a depth of 520 feet during portions of two days, with a total drilling time of approximately 10.5 hours. The upper 219 feet of subsurface materials consisted predominantly of unconsolidated medium- to coarse-grained sand with increased boulder content below a depth of 80 feet. A review of a geologic map of the area (Kellogg et al., 2003) suggests that this unconsolidated material was Gore Creek Alluvium and Pinedale Till. Bedrock was encountered at a depth of 219 feet, with this bedrock consisting of interbedded sandstone, siltstone, shale, and minor inclusions of limestone. This bedrock appeared to be part of the Lower Member of the Minturn Formation (Kellogg et al., 2003). Voids were encountered in the subsurface at depths of 219’-227’, 295’-296’, and 407’-419’. Poor drilling fluid returns occurred in the zone from 200’-240’. After conditioning the drilling mud with soda ash, returns within and below that depth were normalized. Given the rapid normalization of mud returns and the minimal limestone content within the bedrock, it is my opinion that these voids consisted of vertical fractures within the bedrock. Kellogg et al. (2003) indicate the this drillhole is 77 Confidential and Proprietary Information located approximately 0.4 mile west of an anticline and 0.8 mile west of a syncline, suggesting that fracturing of the bedrock in this area should be anticipated. A 1.25-inch diameter, SDR-11 U-bend assembly was installed to permit the performance of the thermal conductivity test. The initial attempt to install the U-bend assembly encountered an obstruction and the tube was pulled from the hole. During a second installation attempt, the U-bend assembly encountered another obstruction at a depth of 415 feet (probably in a fracture void). The decision was made to grout the hole with the assembly at that depth. The assembly was pressure tested and found to be competent. The U-bend assembly was grouted in place with a blended mix of 44 bags of GeoPro TL Lite and 22 bags of PowerTEC graphite. No grout sample was taken. Thermal Conductivity Test Results A thermal conductivity test was performed in the U-bend assembly during the period of December 12- 14, 2023. This test was conducted in accordance with the recommendations of the International Ground Source Heat Pump Association and the American Society of Heating, Refrigeration, and Air Conditioning Engineers. The results of this test are provided in Attachment B. The , resulting in a field- estimated average deep-earth temperature of 50.05 oF, an average thermal conductivity of 2.05 BTU/(hr-ft-°F), and a thermal diffusivity of 1.909 ft2/day. Additional numerical analysis of the data was conducted using advanced thermal response testing and digital twinning. This produced direct measurements of the volumetric heat capacity, grout thermal conductivity, and earth thermal conductivity, as follows: • Earth thermal conductivity = 2.05 BTU/(hr-ft-°F) • Grout thermal conductivity = 2.01 BTU/(hr-ft-°F) • Earth volumetric heat capacity = 25.8 BTU/(ft3-°F) • Grout volumetric heat capacity = 52.5 BTU/(ft3-°F) • Thermal diffusivity = 1.91 ft2/day • Average deep earth temperature = 50.74 oF It is recommended that these values be used for design. The analyses presented in Attachment B indicate that the site is well suited for ground-source heat exchange. Please feel free to call Matt Garlick (801-907-5654), Garen Ewbank (405-826-8156), or myself (801-673- 6647) if you have any questions. We will look forward to working with you in the future. Sincerely, Richard B. White, P.E. Member 78 Confidential and Proprietary Information Attachments Reference Cited Kellogg, K.S., B. Bryant, and M.H. Redsteer. 2003. Geologic Map of the Vail East Quadrangle, Eagle County, Colorado. Miscellaneous Field Studies Map MF-2375. U.S. Geological Survey. Denver, Colorado. 79 BASE: GOOGLE EARTH IMAGE DATED 9/13/2019 FIGURE 1. LOCATION OF THERMAL CONDUCTIVITY TEST HOLE. VAIL TC TEST HOLE #1 80 Confidential and Proprietary Information ATTACHMENT A Borehole Log 81 Location: Legal Approx. Address: 522 S. Frontage Rd. GPS 39.63971, -106.36671 East Vail, CO 81657 Elevation 8190 ft Driller: PanTerra Energy Drilling State License #: Joints on rig: 26 x 20' Joints Rig: Top Head Drive, #916B Drilling Fluid: QuikGel mud Loop: 1-1/4" SDR 11 HDPE Grout: GeoPro TG Lite Rotary:4' GL to top of Tbl TD: 520'520' total reach NOTE: Time gaps represent connections or unrelated activity. Duration Start End Hrs:Min From To 7:00 8:30 8:30 10:34 10:34 10:47 0:13 0 10 10:47 11:04 0:17 11 20 11:04 11:24 0:20 21 30 11:24 11:38 0:14 31 40 11:38 12:06 0:28 41 50 12:06 12:11 0:05 51 60 12:11 12:20 0:09 61 70 12:20 12:29 0:09 71 80 12:29 12:56 0:27 81 90 12:56 13:04 0:08 91 100 13:04 13:17 0:13 101 110 13:17 13:27 0:10 111 120 13:27 13:33 0:06 121 130 13:33 13:40 0:07 131 140 13:40 13:56 0:16 141 150 13:56 14:07 0:11 151 160 14:07 14:20 0:13 161 170 14:20 14:26 0:06 171 180 14:26 14:32 0:06 181 190 14:32 14:38 0:06 191 200 14:38 14:46 0:08 201 210 14:46 14:54 0:08 211 220 14:54 14:59 0:05 221 230 14:59 15:08 0:09 231 240 15:08 15:58 0:50 241 250 15:58 16:20 0:22 251 260 9:43 9:53 0:10 261 270 9:53 10:02 0:09 271 280 10:02 10:16 0:14 281 290 10:16 10:30 0:14 291 300 As above, with bedrock beginning at 219' Sandy siltstone with pink limestone. Void from 219'-227'. Interbedded grey shale, sandstone, and sandy siltstone. AA AA AA with trace of limestone AA AA Sandstone, siltstone, and minor shale. Void from 295'-296' Go r e C r e e k A l l u v i u m a n d P i n e d a l e T i l l Medium to coarse subrounded sand AA AA AA AA AA Medium to coarse subrounded sand with occasional boulders AA AA AA AA AA AA AA AA AA AA AA AA AA Medium sand with abundant granitic boulders Time Activity Depth (Ft.)Fm Comments Start rig (key stolen last night) Warm up rig, mix mud, thaw equipment Date(s): 11/28/2023 - 11/29/2023 Town of Vail South Side of Ford Park Vail, CO 81657 DRILLING LOG - Test Borehole #1 82 10:30 10:38 0:08 301 310 10:38 10:44 0:06 311 320 10:44 10:59 0:15 321 330 10:59 11:08 0:09 331 340 11:08 11:22 0:14 341 350 11:22 11:29 0:07 351 360 11:29 11:40 0:11 361 370 11:40 11:48 0:08 371 380 11:48 12:04 0:16 381 390 12:04 12:12 0:08 391 400 12:12 12:23 0:11 401 410 12:23 12:33 0:10 411 420 12:33 12:44 0:11 421 430 12:44 12:55 0:11 431 440 12:55 13:11 0:16 441 450 13:11 13:21 0:10 451 460 13:21 13:34 0:13 461 470 13:34 13:42 0:08 471 480 13:42 13:52 0:10 481 490 13:52 14:01 0:09 491 500 14:01 14:15 0:14 501 510 14:15 14:22 0:07 511 520 Drilling 10:25 Hrs:Min Drilling 0 -520' COMMENTS:Starting air temp: 11/28/2023 = 5 deg F; 11/29/2023 = 7 deg F; 11/30/2023 = 11 deg F 8" bit used to 40'. 6" bit used below that depth. Voids at 219'-227', 295'-296',and 407'-419'. Top void may include limestone solution cavity. Other voids are probable vertical fractures. Poor returns from 220'-240' due to void. Mud conditioned with soda ash below a depth of 240', resulting in better returns. Drilled to 260' on 11/28/2023. Drilled from 260'-520' on 11/29/2023. No substantial hole collapse during overnight (11/28-11/29) Loop broke from stinger during intial installation attempt (11/29). Due to impending darkness, decided to wait until 11/30 to re-run. Cleaned hole to 520 on morning of 11/30. No substantial collapse. Ran loop to 415', where it hung up (probably in fracture void). Decided to leave at this depth and grout. Broke wireline when trying to pull stinger. Pressure tested loop at 110 psi. Held steady for 15 min. Grouted with stinger in hole. Added 34 bags of GeoPro TG Lite grout and 17 bags of Power TEC graphite on 11/30. Grouted to surface. Added additional 10 bags of grout and 5 bags of graphite on 12/1 due to settlement. Total grouting quantities: 44 bags grout, 22 bags graphite. Drilling observed and samples logged by RB White. AA AA AA AA AA AA AA AA AA AA AA. Void from 407'-419' AA AA AA AA AA AA AA AA AA AA AA Lo w e r M e m b e r o f M i n t u r n F o r m a t i o n 83 DEPTH FT. DESCRIPTION FROM TO SAND, GRAVELS, COBBLES SANDSTONE SHALE 0 219 219 219 230 11 230 405 175 219 11 175 α 1.035 0.95 1.05 α WEIGHTED AVERAGE 1.014133 % OF BOREHOLE 52.77% 2.65% 42.17% 84 Confidential and Proprietary Information ATTACHMENT B Thermal Conductivity Test Report 85 ______________________________________________________________________________ Ewbank Geo Testing, L.L.C. 115 Woodcreek Drive, Fairview, OK 73737 Phone (580) 227-2358 E-mail gewbank@geotctest.com In-situ Thermal Conductivity Testing since 1994 www.geotctest.com Advance Thermal Response Test by Direct Measurement Results Client: The GreyEdge Group, LLC City of Vail, Colorado, 522 S. Frontage Road, East Vail, Colorado To Whom It May Concern: A forty-five (45.3) hour in-situ thermal conductivity test was performed on the 12th, 13th, and 14th, of December 2023. The test was performed for the GreyEdge Group, LLC at the borehole drilled on November 28th, and the 29th, south side of Ford Park at 522 S. Frontage Road in East Vail, Colorado. Testing was done with a certified Ewbank portable test unit. The in-situ test data was acquired by Mr. Duane Harman, P.E. and witnessed by Mr. Garen Ewbank with Ewbank Geo Testing, LLC, 115 Woodcreek Drive, Fairview, OK 73737. The borehole was six (6”) inches in diameter and was four hundred and five (405’) feet in depth. A one inch and one-fourth inch (1-1/4”) SDR-11 4710 HDPE loop was installed and the borehole and grouted with graphite enhanced bentonite grout to surface. Static water level was unknown, however groundwater was encountered. The average deep earth temperature was fifty (50.05 °F) degrees Fahrenheit, which indicates the averaged undisturbed deep earth temperature. The power input was varied during the testing using the advanced thermal response testing procedure. The average thermal conductivity (k) for the ground heat exchanger as installed was 2.05 Btu / (hr-ft-°F). This is an average conductivity per foot for the ground heat exchanger as constructed and tested. The thermal conductivity value represents the rate at which the ground heat exchanger and earth transfer heat. This value is required to determine the amount of ground heat exchanger for the design loads of the facility to transfer to or from the ground loads. The thermal diffusivity was 1.909 ft2 per day. This test data was acquired under the recommendations of the International Ground Source Heat Pump Association (IGSHPA) and the American Society of Heating, Refrigeration, and Air conditioning Engineers (ASHRAE). Numerical analysis was conducted using advanced thermal response testing (A-TRT) and digital twinning. This produced direct measurements of the volumetric heat capacity of the grout and earth, grout thermal conductivity, and earth thermal conductivity. That report by Rick Clemenzi, P.E., follows and determined the earth thermal conductivity of 2.05, earth volumetric heat capacity of 25.8, grout thermal conductivity of 2.01, grout volumetric heat capacity of 52.5 and thermal diffusivity of 1.91. The measured diffusivity (leading to volumetric heat capacity) is very important in designing an ambient temperature loop (ATL) connected to a ground heat exchanger as a thermal storage system rather than a heat sink and or source. It is recommended to use these values for design. January 18, 2024 By: Garen N. Ewbank, B.S. I.E.&M, CEM, CGD, CDSM, CRM, CBEP, CSDP, and CEA for Ewbank Geo Testing, L.L.C. 86 CLIENT: City of Vail LOCATION: East Vail, 39.63971, -106.36671 DATE PERFORMED: 12 December 23, date drilled 28-29 November 2023 BORE HOLE DEPTH: 405 BORE HOLE DIAMETER: 6" LOOP DESCRIPTION: 1.25 hdpe sdr 11 TYPE OF GROUT: powertech2 to 1 CEMENT SEAL DESC: none SWL: unknown TEST OPERATOR: Duane WITNESS: Garen TEST DURATION: 45.3 hours HEAT OF REJECTION DURATION: 44.68 hours DEEP EARTH TEMPERATURE: 50.05 POWER INPUT: 20.15 Watts/ft. of borehole EARTH THERMAL CONDUCTIVITY: 2.05 Btu / (hr-ft-°F) {κ} ESTIMATED THERMAL DIFFUSIVITY: 1.909 ft2 / day {α} HEAT CAPACITY EARTH 25.8 BTU/FT3 - °F HEAT CAPACITY GROUT 52.5 BTU/FT3 - °F ESTIMATED BOREHOLE RESISTANCE:(hr-ft-F) / Btu {Rb} AVERAGE FLOW TO LOOP: 6.97 GPM (4 GPM/300' FOR BOREHOLE RESISTANCE <~5%) Ratio of grout κ to soil κ 0.980 MEAN HEAT RATE (MAXIMUM): 27838 Btu / hr LATE TIME SLOPE: 4.1578 °F / Ln(time) T AVG INTERCEPT AT 1HR: °F T AVG AT 1 HR: 62.16 °F RISE: 12.10 °F T AVG AT 39.43 HRS: 73.33 °F RISE: 23.28 °F 87 Geothermal Design Center Inc. PO Box 18757 Asheville, NC 28814 Date: January 17, 2024 To: Garen Ewbank Ewbank Geo Testing, LLC Re: Advanced Thermal Response Test Analysis, East Vail, CO -- GPS: 39.63971N, -106.36671W Enclosed is our GeoAssuredTM Advanced Thermal Response Test (A-TRT) Numerical Analyses on the TRT data and well log materials shared with us for GPS coordinates 39.63971N, -106.36671W in East Vail, CO. The results of this analysis are important for properly designing and sizing Geothermal Heat Exchangers (GHEX). Summary The results of the A-TRT analyses are summarized as follows: Description Ground Grout Units Thermal Conductivity 2.05 2.01 BTU/ft-hr-°F (TC or K) Volumetric Heat Capacity 25.8 52.5 BTU/ft3-°F (HC) Deep Earth Temperature (avg) 50.74°F Calculated Diffusivity 1.91 ft2/Day The A-TRT shows there is a significant Thermal Conductivity impact from water movement in the East Vail valley site, most likely in the top 219’ of unconsolidated soils. This upper layer creates a thermal transfer opportunity which a GHEX designer could perhaps utilize. The dynamic volumetric movement situation in that layer creates higher Calculated Diffusivity and overall calculated volumetric Heat Capacity figures than a conventional well log based analysis. We include additional technical information below about the tests and results. The A-TRT process and output graphs are explained below in "TRT Technique and Understanding the A-TRT Graphs". Analysis Figures 1, 2, 3 below show the final results of the A-TRT Analysis. The nature of the Figures 1 & 3 graphs is explained below. The Google Earth view in Figure 2 shows the site is directly adjacent to the creek flowing through this enclosed mountain valley, almost certainly making the tested bore fully saturated and affected by likely flowing ground water. Test Well and Graphical Results -- The A-TRT analysis was performed as depicted in Figure 1 below on the data collected from a TRT performed by Ewbank Geo Testing, LLC started December 12, 2023 and run for over 44 hours. This well 88 Advanced Thermal Analysis Page 2 of 5 was drilled November 28-29, thermally “rested”. The bore was “TG Lite / PowerTEC (2:1)” grout with two (2) power fluctuations the grout and ground properties. with the A-TRT Numerical Analysis digital twin model created is shown by how almost line covers the solid blue collected data drawn, Thermal Conductivity (TC Ground, stem from the precision of the curve fit, especially the curve shapes each parameter resulting from increasing and falling temperatures involved. how we know our conclusions are Analysis are shown in the above Summary The “TG Lite / PowerTEC (2:1) reported by the manufacturer. GeoPro Inc. suggests a TC value K=1.2 for TG Lite and PowerTEC at the specified mixing ratio used by the grout Analysis measures the effective TC of the conditions. We conclude that the movement causing this increased TC value, a result we have seen other places as well (ground water movemen values). Well Log and Water Presence unconsolidated sand, gravel, and cobbles. water flow. A look at the site in Google Earth (Figure mountain valley area with the site. This combination of obviously for geothermal use, and fully explains the results observed. However Figure 1 – A-TRT Digital Twin East Vail, CO Ja , 2023 which was 13 days earlier and thus . The bore was reported as having a 405’ 1.25" DR11 loop ” grout. Figure 1 shows the entire 44+ hour test power fluctuations which let us draw more accurate conclusions about ut and ground properties. The measured temperature data is shown in blue TRT Numerical Analysis “digital twin” result in green. The quality of the is shown by how almost exactly the solid green center blue collected data average. The four principal conclusions drawn, Thermal Conductivity (TC or K) and Heat Capacity (HC) of the Grout and Ground, stem from the precision of the curve fit, especially the curve shapes each parameter resulting from the quality of fit of a different part of the overall increasing and falling temperatures involved. This very high degree of correlation is how we know our conclusions are likely correct. The numerical results of the A Analysis are shown in the above Summary table. TG Lite / PowerTEC (2:1)” grout mixture tested significantly higher than as reported by the manufacturer. GeoPro Inc. suggests a TC value K=1.2 for TG Lite at the specified 2:1 mixing ratio, but we do not know the exact grout installer which will strongly affect TC. The A effective TC of the grout at K=2.0 under the installed . We conclude that the saturated top 219’ shows evidence of water ing this increased TC value, a result we have seen other places as nt of every kind significantly increases soil and Water Presence – The driller’s log shows the top 219 gravel, and cobbles. Such materials are highly porous to water flow. A look at the site in Google Earth (Figure 2) shows a constrained with the valley’s draining stream directly adjacent to the drill obviously fully saturated porous overburden for geothermal use, and fully explains the results observed. However TRT Digital Twin Analysis Results anuary 17, 2024 days earlier and thus fully 1.25" DR11 loop with + hour test period let us draw more accurate conclusions about measured temperature data is shown in blue he quality of the the solid green center conclusions ) and Heat Capacity (HC) of the Grout and Ground, stem from the precision of the curve fit, especially the curve shapes, with a different part of the overall This very high degree of correlation is numerical results of the A-TRT higher than as reported by the manufacturer. GeoPro Inc. suggests a TC value K=1.2 for TG Lite 2:1 mixing ratio, but we do not know the exact . The A-TRT 2.0 under the installed evidence of water ing this increased TC value, a result we have seen other places as of every kind significantly increases soil and grout TC 219’ of earth is Such materials are highly porous to ) shows a constrained draining stream directly adjacent to the drill n is excellent for geothermal use, and fully explains the results observed. However, we caution 89 Advanced Thermal Analysis Page 3 of 5 Figure 2 - Google Earth Map of that the designer should take into account the fact that any TRT results depend on this water presence and may variations in thermal dispersion Conventional Diffusivity analysi movement into account, and we estimate Diffusivity at a significant as shown in the above Summary Table. Deep Earth Temperature Results the initial 1 second data collection period. unit, with the equipment getting to ground temperature at about the 1st vertical blue line. Following this point, we see one large thermal dip and a 2nd Figure East Vail, CO Ja Google Earth Map of East Vail, CO (test location at red that the designer should take into account the fact that any TRT results depend on y show varying conditions across a whole dispersion whether up stream or downstream in Conventional Diffusivity analysis does not take this water presence and likely movement into account, and we estimate Diffusivity at a significantly higher as shown in the above Summary Table. Temperature Results – Figure 3 shows the temperature data from the initial 1 second data collection period. This data begins with a cold Figure 3 - Deep Earth Ground Temperature Analysis anuary 17, 2024 red tag) that the designer should take into account the fact that any TRT results depend on site, including the valley. s does not take this water presence and likely y higher value shows the temperature data from data begins with a cold TRT test Deep Earth Ground Temperature Analysis 90 Advanced Thermal Analysis East Vail, CO January 17, 2024 Page 4 of 5 shallower one showing how the ground temperature settles to the average ground temperature due to the water circulation. The 2nd horizontal blue line at the end of a 2nd full circulation cycle shows the end of our average computation period to be certain it is based on a balanced set of cyclic thermal data. Note this average ground temperature is the average of an approximately 5°F temperature gradient that gets warmer with depth. The GHEX designer should take all ground temperature data into account realizing this location does not have a single average ground temperature as shown by the provided “Deep Earth Temperature (avg)” value. A-TRT Technique and Understanding the A-TRT Graphs -- The Advanced TRT process involves pumping plain water inside the loop-under-test, measuring the temperature of the water both entering and leaving the test gear, measuring the flow rate, sometimes adding heat to the water via heater elements or an on- demand water heater, and measuring the power consumed by the pump and optional water heating. Values for each parameter are recorded every second when the testing starts, then drops back to 1 sample per minute once the system is in a stable operation mode. During the one sample every second period, a detailed log of water temperatures is collected to determine the deep earth temperature (bores) or current ground temperature (horizontal loops). There is no set duration for an A-TRT test provided the output yields a strong correlation with measured data without variable interdependence. This generally requires a minimum of 12 hours testing overall for bores in a consolidated formation. Longer tests are required when looking for Aquifer Water Movement patterns such as from municipal water system pumping. Tests over 40 hours are common to ensure highly reliable results, with a minimum 36 hours specified by ASHRAE and ANSI/CSA/IGSHPA C-448 standards. When testing additional bores at a single site, the subsequent tests can be shorter without loss of reliability if the analysis shows TC convergence without ongoing variation. The results of the A-TRT test are the estimated Thermal Conductivity (K: BTU/(ft- hr-°F)) of the Ground and optionally the Grout (bores only), and the estimated Heat Capacity (HC: BTU/cu-ft-°F) of the Ground/Grout. These results are combined to produce an artificial parameter called Diffusivity (sqft/day) used by some software to determine GHEX size. The principle A-TRT input parameters are the measured In/Out Temperatures (°F), Flow Rate (GPM), and heat rate (Watts or oz-propane/min). Also critical to an accurate result are loop length, pipe configuration, bore diameter/loop spacing, and pipe size with wall thickness (DR rating). The process of completing an A-TRT evaluation involves setting initial HC conditions from industry accepted tables and iterating on all parameters until a good 91 Advanced Thermal Analysis East Vail, CO January 17, 2024 Page 5 of 5 "simulation correlation" against the actual measured values is achieved. All of the factors affect the resulting curve shape in slightly different ways which is how one can see when one of the inputs is not valid. Our experience has shown that the various rock and soil formations actually have quite varying HC from the common well log based prediction. This is especially true for Grouts which vary widely based on saturation level and quality of Grout mixing. Determining HC and K are the principal steps of the process. Sometimes it becomes clear that one of the basic input parameters is incorrect, such as loop length, which will become obvious from the A-TRT process. Specifically looking at the principal A-TRT output graph (Figure 1), the Blue lines are the Measured In/Out water temperatures (dashed Blue) and the computed Mean (solid Blue). The Green lines are the A-TRT Simulation Resulting Mean (solid Green) and computed In/Out water temperatures (dashed Green). Power/Heat Rate is shown normalized in Red. For the Horizontal Loop test technique, additional probe temperature tests are taken to confirm ground thermal saturation. A positive correlation result is when the solid Green line matches the solid Blue line during periods of heat being added, and matches the bottom Blue dashed line when no heat is being added. A correlation to the "shape" of the curves (for data following detailed minute-by-minute sample collection) is the goal. It is this "shape fit" that indicates a positive conclusion of the A-TRT process more than the exact "level" which is highly dependent on initial conditions and timings. Conclusion The results are conclusive based on the available data and site location. This is an excellent area for a GHEX. Given the mountain valley location, the surface water level is likely very reliable and thus the results dependable for GHEX use. However, ground water flow is unknown which could lead to slightly varying results across a large GHEX area. Report prepared by: Richard A. Clemenzi, PE, CGD Geothermal Design Center Inc. 828-712-6786 rclemenzi@geothermaldesigncenter.com Certified GeoExchange Designer 92 93 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 TI M E 16 : 3 9 : 3 0 16 : 4 0 : 0 0 16 : 4 0 : 3 0 16 : 4 1 : 0 0 16 : 4 1 : 3 0 16 : 4 2 : 0 0 16 : 4 2 : 3 0 16 : 4 3 : 0 0 16 : 4 3 : 3 0 16 : 4 4 : 0 0 16 : 4 4 : 3 0 16 : 4 5 : 0 0 16 : 4 5 : 3 0 16 : 4 6 : 0 0 16 : 4 6 : 3 0 16 : 4 7 : 0 0 16 : 4 7 : 3 0 16 : 4 8 : 0 0 16 : 4 8 : 3 0 16 : 4 9 : 0 0 16 : 4 9 : 3 0 16 : 5 0 : 0 0 16 : 5 0 : 3 0 16 : 5 1 : 0 0 16 : 5 1 : 3 0 16 : 5 2 : 0 0 16 : 5 2 : 3 0 16 : 5 3 : 0 0 16 : 5 3 : 3 0 16 : 5 4 : 0 0 16 : 5 4 : 3 0 16 : 5 5 : 1 4 16 : 5 5 : 4 4 16 : 5 6 : 1 4 16 : 5 6 : 4 4 16 : 5 7 : 1 4 16 : 5 7 : 4 4 16 : 5 8 : 1 4 16 : 5 8 : 4 4 FL O W ( G P M ) LO O P L E G , E W T , L W T , T E M P E R A T U R E S ( F A H R E N H E I T ) TIME OF TESTING (HRS:MIN:SEC) EARTH LOOP DEEP EARTH TEMPERATURE TEST EWT LWT FLOW 94 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 DU R A T I O N 1: 0 3 : 0 0 2: 0 7 : 0 0 3: 1 1 : 0 0 4: 1 5 : 0 0 5: 1 9 : 0 0 6: 2 3 : 0 0 7: 2 7 : 0 0 8: 3 1 : 0 0 9: 3 5 : 0 0 10 : 3 9 : 0 0 11 : 4 3 : 0 0 12 : 4 7 : 0 0 13 : 5 1 : 0 0 14 : 5 5 : 0 0 15 : 5 9 : 0 0 17 : 0 3 : 0 0 18 : 0 7 : 0 0 19 : 1 1 : 0 0 20 : 1 5 : 0 0 21 : 1 9 : 0 0 22 : 2 3 : 0 0 23 : 2 7 : 0 0 24 : 3 1 : 0 0 25 : 3 5 : 0 0 26 : 3 9 : 0 0 27 : 4 3 : 0 0 28 : 4 7 : 0 0 29 : 5 1 : 0 0 30 : 5 5 : 0 0 31 : 5 9 : 0 0 33 : 0 3 : 0 0 34 : 0 7 : 0 0 35 : 1 1 : 0 0 36 : 1 5 : 0 0 37 : 1 9 : 0 0 38 : 2 3 : 0 0 39 : 2 7 : 0 0 40 : 3 1 : 0 0 41 : 3 5 : 0 0 42 : 3 9 : 0 0 43 : 4 3 : 0 0 EA R T H L O O P T E M P E R A T U R E S , E W T , L W T , T A V G ( F A H R E N H E I T ) DURATION OF TIME OF TESTING (HRS:MIN:SEC) EARTH LOOP TEMPERATURES DURING TESTING EWT LWT T AVG INTERIM PERIOD, LOOP AT FULL RESTING, NO DATA, HEATING, PUMPING ONE ELEMENT ONLY 95 0 1 2 3 4 5 6 7 8 57 58 59 60 61 62 63 64 TI M E 9: 2 7 : 2 5 9: 2 7 : 5 0 9: 2 8 : 1 5 9: 2 8 : 4 0 9: 2 9 : 0 5 9: 2 9 : 3 0 9: 2 9 : 5 5 9: 3 0 : 2 0 9: 3 0 : 4 5 9: 3 1 : 1 0 9: 3 1 : 3 5 9: 3 2 : 0 0 9: 3 2 : 2 5 9: 3 2 : 5 0 9: 3 3 : 1 5 9: 3 3 : 4 0 9: 3 4 : 0 5 9: 3 4 : 3 0 9: 3 4 : 5 5 9: 3 5 : 2 0 9: 3 5 : 4 5 9: 3 6 : 1 0 9: 3 6 : 3 5 9: 3 7 : 0 0 9: 3 7 : 2 5 9: 3 7 : 5 0 9: 3 8 : 1 5 9: 3 8 : 4 0 9: 3 9 : 0 5 9: 3 9 : 3 0 9: 3 9 : 5 5 9: 4 0 : 2 0 9: 4 0 : 4 5 9: 4 1 : 1 0 9: 4 1 : 3 5 9: 4 2 : 0 0 9: 4 2 : 2 5 9: 4 2 : 5 0 9: 4 3 : 1 5 9: 4 3 : 4 0 9: 4 4 : 0 5 9: 4 4 : 3 0 9: 4 4 : 5 5 9: 4 5 : 2 0 9: 4 5 : 4 5 9: 4 6 : 1 0 9: 4 6 : 3 5 9: 4 7 : 0 0 FL O W ( G P M ) EA R T H L O O P L E G , E W T , L W T T E M P E R A T U R E S ( F A H R E N H E I T ) TIME OF TESTING (HRS:MIN:SEC) INTERIM DATA, NO POWER OR HEATING ELEMENTS FROM HRS. ~39:24 TO ~40:31 96 0 1 2 3 4 5 6 7 8 0: 0 0 : 0 0 1: 0 4 : 0 0 2: 0 8 : 0 0 3: 1 2 : 0 0 4: 1 6 : 0 0 5: 2 0 : 0 0 6: 2 4 : 0 0 7: 2 8 : 0 0 8: 3 2 : 0 0 9: 3 6 : 0 0 10 : 4 0 : 0 0 11 : 4 4 : 0 0 12 : 4 8 : 0 0 13 : 5 2 : 0 0 14 : 5 6 : 0 0 16 : 0 0 : 0 0 17 : 0 4 : 0 0 18 : 0 8 : 0 0 19 : 1 2 : 0 0 20 : 1 6 : 0 0 21 : 2 0 : 0 0 22 : 2 4 : 0 0 23 : 2 8 : 0 0 24 : 3 2 : 0 0 25 : 3 6 : 0 0 26 : 4 0 : 0 0 27 : 4 4 : 0 0 28 : 4 8 : 0 0 29 : 5 2 : 0 0 30 : 5 6 : 0 0 32 : 0 0 : 0 0 33 : 0 4 : 0 0 34 : 0 8 : 0 0 35 : 1 2 : 0 0 36 : 1 6 : 0 0 37 : 2 0 : 0 0 38 : 2 4 : 0 0 39 : 2 8 : 0 0 40 : 3 2 : 0 0 41 : 3 6 : 0 0 42 : 4 0 : 0 0 43 : 4 4 : 0 0 EA R T H L O O P F L O W ( G P M ) A N D D I F F E R E NT I A L T E M P E R A T U R E ( F A H R E N H E I T ) DURATION OF TIME OF TESTING (HRS:MIN:SEC) FLOW AND DIFFERENTIAL TEMPERATURE DURING EARTH LOOP TESTING ΔT FLOW 97 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 13000 14000 15000 16000 17000 18000 19000 20000 21000 22000 23000 24000 25000 26000 27000 28000 29000 DU R A T I O N 1: 0 7 : 0 0 2: 1 5 : 0 0 3: 2 3 : 0 0 4: 3 1 : 0 0 5: 3 9 : 0 0 6: 4 7 : 0 0 7: 5 5 : 0 0 9: 0 3 : 0 0 10 : 1 1 : 0 0 11 : 1 9 : 0 0 12 : 2 7 : 0 0 13 : 3 5 : 0 0 14 : 4 3 : 0 0 15 : 5 1 : 0 0 16 : 5 9 : 0 0 18 : 0 7 : 0 0 19 : 1 5 : 0 0 20 : 2 3 : 0 0 21 : 3 1 : 0 0 22 : 3 9 : 0 0 23 : 4 7 : 0 0 24 : 5 5 : 0 0 26 : 0 3 : 0 0 27 : 1 1 : 0 0 28 : 1 9 : 0 0 29 : 2 7 : 0 0 30 : 3 5 : 0 0 31 : 4 3 : 0 0 32 : 5 1 : 0 0 33 : 5 9 : 0 0 35 : 0 7 : 0 0 36 : 1 5 : 0 0 37 : 2 3 : 0 0 38 : 3 1 : 0 0 39 : 3 9 : 0 0 40 : 4 7 : 0 0 41 : 5 5 : 0 0 43 : 0 3 : 0 0 44 : 1 1 : 0 0 PO W E R I N P U T I N W A T T S , T W A T T , A N D B T U DURATION OF TIME OF TESTING (HRS:MIN:SEC) POWER INPUT (HEAT OF REJECTION) DURING EARTH LOOP TESTING TWATT BTU 98 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 DU R A T I O N 1: 0 3 : 0 0 2: 0 7 : 0 0 3: 1 1 : 0 0 4: 1 5 : 0 0 5: 1 9 : 0 0 6: 2 3 : 0 0 7: 2 7 : 0 0 8: 3 1 : 0 0 9: 3 5 : 0 0 10 : 3 9 : 0 0 11 : 4 3 : 0 0 12 : 4 7 : 0 0 13 : 5 1 : 0 0 14 : 5 5 : 0 0 15 : 5 9 : 0 0 17 : 0 3 : 0 0 18 : 0 7 : 0 0 19 : 1 1 : 0 0 20 : 1 5 : 0 0 21 : 1 9 : 0 0 22 : 2 3 : 0 0 23 : 2 7 : 0 0 24 : 3 1 : 0 0 25 : 3 5 : 0 0 26 : 3 9 : 0 0 27 : 4 3 : 0 0 28 : 4 7 : 0 0 29 : 5 1 : 0 0 30 : 5 5 : 0 0 31 : 5 9 : 0 0 33 : 0 3 : 0 0 34 : 0 7 : 0 0 35 : 1 1 : 0 0 36 : 1 5 : 0 0 37 : 1 9 : 0 0 38 : 2 3 : 0 0 39 : 2 7 : 0 0 40 : 3 1 : 0 0 41 : 3 5 : 0 0 42 : 3 9 : 0 0 43 : 4 3 : 0 0 AC V O L T A G E , H T R V , A N D A M P E R A G E , H T R A DURATION OF TIME OF TESTING (HRS:MIN:SEC) POWER SUPPLIED TO IN-SITU UNIT DURING EARTH LOOP TESTING HTRV HTRA 99 February 2024 Ground source heat pumps: Opportunities and challenges D a v i d P e t r o y , N T S E n e r g y N e i l K o l w e y , S o u t h w e s t E n e r g y E f f i c i e n c y P r o j e c t (S W E E P ) R E P O R T 100 D a v i d P e t r o y D a v i d P e t r o y i s t h e F o u n d e r o f N T S E n e r g y , b r i n g i n g o v e r 2 0 y e a r s o f e x p e r t i s e i n r e n e w a b l e e n e r g y a n d s u s t a i n a b i l i t y . A s t h e f o r m e r F o u n d e r /P r e s i d e n t o f B l u e V a l l e y E n e r g y , a g r o u n d s o u r c e h e a t p u m p e n g i n e e r i n g d e s i g n a n d i n s t a l l a t i o n c o m p a n y , h e o v e r s a w n e a r l y 1 0 0 i n s t a l l a t i o n s t h r o u g h o u t C o l o r a d o . P e t r o y 's e a r l y e x p e r i e n c e i n c l u d e s l e a d i n g t e c h n i c a l s a l e s o f s o l a r a n d e n e r g y p o w e r s y s t e m s f o r r e s i d e n t i a l a n d c o m m e r c i a l b u s i n e s s e s a t R M S E l e c t r i c . M o r e r e c e n t l y , h e s e r v e d a s S u s t a i n a b i l i t y M a n a g e r a t G o l d e n A l u m i n u m , o n e o f t h e l a r g e s t s i n g l e -s i t e i n d u s t r i a l p o w e r u s e r s i n C o l o r a d o . C u r r e n t l y , P e t r o y f o c u s e s o n h i s r o l e a t N T S E n e r g y , a c o n s u l t i n g c o m p a n y d e d i c a t e d t o H V A C a n d e n e r g y s o l u t i o n s f o r r e s i d e n t i a l , c o m m e r c i a l , a n d i n d u s t r i a l c l i e n t s . About the authors R E P O R T N e i l K o l w e y N e i l K o l w e y i s I n d u s t r i a l P r o g r a m D i r e c t o r & B u i l d i n g E l e c t r i f i c a t i o n S p e c i a l i s t a t t h e S o u t h w e s t E n e r g y E f f i c i e n c y P r o j e c t (S W E E P ). I n t h i s r o l e , h e l e a d s p r o g r a m s a i m e d a t a d v a n c i n g e n e r g y e f f i c i e n c y i n t h e i n d u s t r i a l s e c t o r a n d p r o m o t i n g b e n e f i c i a l e l e c t r i f i c a t i o n t o d e c a r b o n i z e b u i l d i n g s a n d i n d u s t r i e s . W o r k i n g i n c o l l a b o r a t i o n w i t h t h e S W E E P B u i l d i n g s t e a m , K o l w e y a c t i v e l y a d v o c a t e s f o r b e n e f i c i a l e l e c t r i f i c a t i o n i n b u i l d i n g s , e m p h a s i z i n g t h e u s e o f e f f i c i e n t a n d c o s t - e f f e c t i v e h e a t p u m p s , h e a t p u m p w a t e r h e a t e r s , a n d o t h e r e l e c t r i c a p p l i a n c e s . S i n c e J u n e 2 0 2 0 , h e h a s a l s o c o -l e d t h e B e n e f i c i a l E l e c t r i f i c a t i o n L e a g u e o f C o l o r a d o . 101 Ground source heat pumps: Opportunities and challenges David Petroy, NTS Energy Neil Kolwey, Southwest Energy Efficiency Project (SWEEP) February 2024 Executive summary Both air-source heat pumps (ASHPs) and ground-source heat pumps (GSHPs) offer improved efficiencies and greatly reduced greenhouse gas (GHG) emissions for heating of residential and commercial buildings compared to gas or propane heating systems. Increasing the installations of these heat pump technologies is an important pathway for Colorado to achieve its climate goals for residential and commercial buildings. GSHPs offer improved efficiencies compared to ASHPs, but at significantly greater upfront costs. Therefore, GSHPs will be most cost-effective and will achieve the greatest benefits for larger buildings or for networks of buildings, including these applications: ● Schools (K-12) and college/university buildings ● Medium-size and larger commercial buildings ● Geothermal networks for new home developments or a mix of residential and commercial buildings Colorado has many examples of these types of applications, and we highlight several in this report. With a focused effort among GSHP businesses, building owners, real estate professionals, and policymakers, there is great potential for expanding GSHP use in these types of building scenarios. GSHP market development The greatest bottleneck to expanding the number of GSHP projects in the state for the larger applications above is the number and capacity of installers. Currently only a handful of drillers or “looping contractors'' are doing GSHP projects in Colorado, and many of these projects are single-family residential. Growing the commercial drilling/looping industry and GSHP installation supply chain in Colorado will take sustained leadership from the Colorado Energy Office (CEO), in collaboration with the Colorado Geothermal Advisory Group, utilities, and the investment community. We recommend that CEO explore the following strategies: 1) Hold discussions on how to improve the geothermal drilling market for commercial and housing development applications with the four large successful GSHP installation companies currently serving Colorado. 102 2 2) Collaborate with utilities/investors to develop a sustainable business model for large-scale commercial looping operations. 3) Work with the Colorado Water Well Contractors Association (CWWCA) association to expand the number of geothermal looping contractors. GSHP grant funds and other state support There is already an abundance of federal and state tax credits and utility rebates for GSHP projects. There is also a state Geothermal Energy Grant Program, which we recommend focusing its GSHP funding towards: ● Public schools, community colleges, and state universities ● Government buildings and complexes ● Nonprofit medical facilities ● Networks of new residential and/or commercial buildings For large GSHP demonstration projects, we recommend the following process to ensure system performance as proposed: ● Independent design review prior to installation approval ● Post-installation performance testing validation In addition, the state Public Utility Commission (PUC) should encourage gas and electric utilities to perform demonstration projects and cost analyses of geothermal networks for new developments. If shown to be cost-effective, this could provide a new revenue stream for gas utilities, while contributing to the state’s climate goals for the buildings sector. Residential GSHP market In general, ASHPs are a more competitive solution for smaller buildings and single-family homes. However, our analysis shows that for homes in Denver or the Front Range larger than about 3,500 square feet or with a heating load of five tons or more, GSHPs have about the same life-cycle costs as ASHPs (including tax credits and rebates). For the high country, which has more challenging geology, this equality of costs would be true for slightly larger homes, such as 4,000 square feet or more, because of the higher drilling costs. We anticipate that the residential GSHP market will remain a niche market for large single-family homes on the Front Range and in the high country throughout the next decade. This market is already well- supported by the currently available federal, state, and utility financial support and will continue to grow organically via small GSHP businesses, so it does not require any additional state focus or resources. 103 3 Heating and cooling of buildings with heat pumps In order to address the climate challenge and reduce carbon emissions from buildings, there is growing interest in electric heat pump technology to replace the use of gas or propane for space and water heating. In Colorado, about 10% of total direct (Scope 1) GHG emissions are from residential and commercial buildings, with about two-thirds of this from residential buildings.1 Further, most of the GHG emissions from buildings are from space heating, with water heating, cooking, and clothes drying accounting for a much smaller percentage of total fuel use and carbon emissions. There are two main types of heat pumps for space heating of residential and commercial buildings - “ground-source” and “air-source” heat pumps. Both significantly reduce carbon and other pollutant emissions and are much more efficient compared to heating with gas or propane. Below, we discuss the advantages and disadvantages of these two types of heat pumps and highlight the best applications for each. Since there is already a lot of information available on ASHPs, the focus of this report is on “geothermal” or GSHPs. We mainly focus on Colorado’s market and its drillers and installers, tax credits, and grants -- although much of the information also applies to other states. Also, the focus of this report is on heat pump systems for new buildings. Retrofits of existing buildings with GSHPs are possible but are generally significantly more expensive. We highlight some successful Colorado examples and make some recommendations for how to increase the adoption of this technology for the most cost-effective applications. Comparison of ground- and air-source heat pumps GSHPs use sealed underground water pipe loops to pull energy from the ground to heat buildings in winter and push heat from the buildings back into the ground in the summer to cool them. The boreholes to circulate the water underground and back to the surface can either be vertical or horizontal.2 In this report we focus on operating costs and first costs for vertical loop fields because the vast majority of homes and commercial buildings in Colorado do not have the land area necessary for horizontal loop fields. If a homeowner or building owner has land available for a horizontal loop and low-cost access to equipment or contractors to excavate and fill trenches, then the savings for a GSHP installation can be significant. However, for a residential horizontal loop, you typically need 1+ acres of land; this can vary due to the lower thermal conductivity of unconsolidated soils. 1 “Colorado GHG Emissions Inventory,” CO Dept. of Public Health and Environment, https://cdphe.colorado.gov/environment/air-pollution/climate-change/GHG-inventory. In addition to the direct GHG emissions from fuel use, commercial and residential buildings consume 73% percent of electricity generated, and electricity generation accounts for 24% of the total direct GHG emissions. 2 There is also growing interest in geothermal electricity generation, which relies on high-temperature fluids found beneath the earth’s surface in some locations. See the U.S. Department of Energy’s Geothermal Electricity Generation website. 104 4 Vertical Loop Field 3 Horizontal Loop Field 4 There are two other possible GSHP loop types: 1) surface water pond or lake loops; and 2) open well water loops. Since it is very rare in Colorado to have the conditions needed for these, our paper does not discuss them. ASHPs, on the other hand, pull energy from the outside air to heat buildings in the winter and push heat back outside in the summer to cool them. There are numerous studies of the benefits of ASHPs.5 All the major utilities in Colorado offer significant rebates for ASHPs, and they are becoming increasingly accepted as replacements for home central air-conditioning (AC) systems, while offering the benefit of both heating and cooling. There are also increasing applications of ASHPs in commercial buildings. The following table highlights the common types of heating/cooling systems in buildings (new proposed buildings or existing building retrofits) and the electrification/heat pump alternatives.6 3 https://www.hydro.mb.ca/your_home/geothermal_heat_pumps/components/ 4 https://www.hydro.mb.ca/your_home/geothermal_heat_pumps/components/. 5 For example, “Benefits of Heat Pumps for Colorado Homes,” SWEEP, February 2022, https://www.swenergy.org/directory/co-heat-pump-study-feb-2022/; and “Benefits of Heat Pumps for Southwest Homes, SWEEP, May 2022, https://www.swenergy.org/directory/sw-heat-pump-study-may-2022/. 6 Decarbonizing HVAC and Water Heating in Commercial Buildings, U.S. Department of Energy, November 2021; VRF Heat Pump Systems Vs. Mini-Split Vs. Multi-Split – Explained - BlocPower, BlocPower, August 2022; Variable Refrigerant Flow (VRF) Systems and Technology, Mitsubishi, August 2023. , 105 5 🗲🗲 ASHP options for commercial buildings Standard heating/cooling System ASHP options Gas-fired packaged rooftop units (RTUs) 1. Heat pump RTU: Most major manufacturers offer ASHP RTUs in capacities of 3-25 tons, with optional auxiliary heating provided by electric resistance coils. 2. Dual-fuel heat pump RTU: A few manufacturers offer dual-fuel heat pump RTUs which operate the heat pump to around 17°F and then switch over to an integrated gas furnace for colder temperatures. Split-system ACs and gas furnaces 1. Ducted split system heat pump: Similar to residential systems, the AC and gas furnace heating can be replaced with a ducted “split system” ASHP. The furnace may continue to be utilized for back-up heating. Ducted split system ASHPs are available for small commercial applications from 6-20 ton capacities. 2. Ductless mini-split heat pump: The AC and gas furnace can be replaced with a non-ducted ASHP (ductless mini-split). Typically, each outdoor unit can provide heating or cooling to three or more indoor units within the same zone. 3. Variable Refrigerant Flow (VRF) heat pump system: VRF systems are a more complex type of mini-split system. Mini-split systems can only provide heating or cooling to all the indoor units within the same zone, but VRF systems continually adjust the flow of the refrigerant to each indoor unit to provide heating or cooling, as needed. If the building has varying heating and cooling needs, these systems are very efficient, but also more expensive. The indoor units can be ductless or have short ducts (mini-ducts). For buildings with low or medium temperature boilers and hydronic heating systems, there are more limited options for ASHPs. For example, air-to-water heat pumps can be used, but they have limitations on the water temperature achievable. Or mini-splits could be used in place of the hydronic system, but this would require an expensive retrofit for an existing building. Below we discuss some advantages and disadvantages of ground-source versus air-source heat pumps. Energy efficiency GSHPs draw heat energy out of the earth during the winter to heat buildings. On the Colorado Front Range and Western Slope, the earth temperature around the subsurface loops is 50-55°F, and in the high country the earth temperature is lower, such as 35-45°F. Over the course of the winter, as the home or building continues to pull heat from the earth, the earth in the vicinity of the borehole cools and its temperature decreases, resulting in lower fluid temperatures in the ground loop. Through proper sizing and design of the looping system, the objective for a closed loop GSHP system is to maintain an 106 6 entering water temperature to the heat pump in a range that is acceptable for reliable operation and sufficient capacity to meet the building’s heating (and cooling) loads.7 Because they rely on the higher and more consistent earth temperatures throughout the winter (as opposed to the air temperatures), GSHPs are more energy efficient than ASHPs. Coefficient of performance (COP) is a measure of energy efficiency (higher COPs are more efficient). In the Colorado Front Range, the COP of a GSHP over a winter typically ranges from 3.5-4.5, whereas the COP of an efficient ASHP system typically ranges from 1.5-3.5 over the course of a winter.8 However, for ASHP systems, choosing a properly sized, efficient cold-climate rated heat pump system is critical in order to minimize the size and use of backup electric resistance heating (or backup gas or propane) for the coldest weather. Backup heating is less of an issue with GSHPs, as discussed below. However, GSHPs require more energy to pump the water through the loops, which partially offsets their higher efficiencies. The pumping energy as a proportion of the total energy use for an individual installation can add anywhere from 5% to 20% to the total energy consumption (with the lower percentages in this range mainly applying to heating, and the higher percentages to cooling).9 For commercial buildings, ASHP systems with VRF (ASHP-VRF) are more efficient than standard ASHP systems, and depending upon building load diversity, they can approach GSHP efficiencies. Life of equipment There is not a lot of actual data on how long heat pumps last. However, based on ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) and manufacturers’ estimates and some data for central AC systems in hot climates, which are very similar to ASHPs, we expect residential ASHPs to last about 15 years on average (with a range of 13-17 years). We expect residential hybrid ASHP/furnace systems to last 18-20 years and commercial ASHP systems to last 15-20 years. Because GSHPs can be located inside buildings, we estimate them to have a longer life-span, such as 20-25 years.10 Grid impacts In addition to being more efficient, GSHPs offer the potential added benefit of adding less electricity demand than ASHPs in the coldest weather. For example, for a home with a whole house ASHP and no backup furnace, there will be some additional electricity load during the coldest days. Even if the heat 7 Terry Proffer, Major Heating, personal communication, January 2, 2024, tproffer@gomajornow.com. 8 GSHP values are based on efficiency ratings from manufacturers based on typical entering water temperature (EWT) for Colorado loop designs. For ASHP values, see: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwj8kfjlrMKDAxVoD0QIHUHN DZUQFnoECCEQAw&url=https%3A%2F%2Fwww.nrel.gov%2Fdocs%2Ffy23osti%2F85081.pdf&usg=AOvVaw0deL3Y wHAf_b1-ceJGq9dK&opi=89978449. 9 https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiqhf6rl7qCAxXkHjQIHcVhA CUQFnoECEIQAQ&url=https%3A%2F%2Fwww.aceee.org%2Ffiles%2Fproceedings%2F2000%2Fdata%2Fpapers%2FS S00_Panel10_Paper10.pdf&usg=AOvVaw3PsCyh30G1TFAK4onevnNF&opi=89978449. 10 For example, commercial water-air GSHP units are projected to have a service life of 24+ years. See Chapter 37, 2015 ASHRAE Handbook, Table 4, Comparison of Service Life Estimates (for various types of mechanical equipment). 107 7 pump is a cold-climate heat pump, properly designed to handle the full heating load of the building at the design temperature, there will be a few days of the year during which the heating load exceeds the heat pump’s capacity. On these days, the backup electric resistance heating may add an additional ~8 kilowatts (kW) of load to the home’s heating power needs (for an average size home). However, cold- climate ductless “mini-split” ASHP systems are able to heat to lower outdoor temperatures than whole house ducted systems and generally require less backup heating. In Appendix B, we provide more details on backup heating needs. Our estimates for backup electric heating needs are summarized in the table below. 🗲🗲 Backup electric heating needs Heat pump system 3-4 ton home 5 ton home ASHP – ducted 3-8 kW 6-10 kW ASHP – ductless 3-6 kW 6-9 kW GSHP 3-5 kW 5-7 kW Because of the relatively steady and warmer temperatures of the earth and underground fluids in the loops, a GSHP system will be able to efficiently provide the home’s heating needs down to very cold outdoor temperatures with very little electric resistance backup, and its electricity use will be less than ASHPs at cold temperatures. In addition to energy demand on the grid, heat pump systems can have an impact on the distribution infrastructure at the building (electrical panel size) and transformer levels. Therefore, GSHPs offer additional value, for both the building owner and the utility, from less additional winter peak demand relative to ASHP systems. Initial costs On the other hand, geothermal heat pump systems cost significantly more than ASHPs. For a new single- family home of about 2,500 square feet, we estimate a cold-climate ASHP system with electric strip backup would cost about $25,000. For a GSHP system for the same home, the cost of the heat pump equipment and pumps would be slightly less than the cost of the ASHP system – about $20,000. However, the cost of installing the underground piping system for the geothermal system is about $45,000 on average, so the GSHP system would cost about $40,000 more than the ASHP system initially, which is a steep cost to overcome. We analyze the life-cycle costs for single-family homes in more detail in a later section of this report. Summary For small commercial stand-alone buildings (“small” meaning with six tons or less of heating capacity), ASHPs will tend to be more cost-effective in “mild” climates such as Climate Zones 5 and lower. For medium and large commercial buildings, ASHP-VRF systems, mentioned in the previous section, are an excellent, cost effective technology to be considered in addition to GSHPs. For medium-size and larger 108 8 commercial buildings in Climate Zones 5 or higher, GSHPs may generally be cost-competitive compared to ASHP or ASHP-VRF systems, and GSHPs will have the potential advantages of slightly lower energy consumption, GHG emissions, and grid impacts.11 12 Commercial buildings GSHP applications We estimate that in the past five years, there have been about 5-10 non-residential GSHP projects installed annually in Colorado, covering a variety of commercial building types. This is based on a compilation of projects from one of the larger GSHP designers in Colorado, summarized in the Table below.13 🗲🗲 Colorado commercial GSHP projects Type of building No. of projects (2019-23) High Country Front Range Housing development 3 1 Government buildings 5 4 Medical facilities 1 1 Education facilities, K-12 through university 7 Commercial 1 2 Community Service 1 Total 11 15 Total heating capacity (tons) 1357 3772 Below we present a few examples of successful GSHP projects (and one new project under construction) involving larger commercial buildings and networks of buildings.14 11 These are our general recommendations, partially based on our analysis in the Residential Applications section. Further research is needed to clarify which are the most cost-effective GSHP applications compared to ASHP or ASHP-VRF technologies. 12 As stated above, we are mainly focusing in this report on new buildings and homes; but GSHPs would also make sense for existing commercial buildings with radiant heating, because ASHPs don’t perform as well in air-water applications. 13 Terry Proffer, Major Heating, personal communication, December 8, 2023, tproffer@gomajornow.com. 14 More examples of Colorado geothermal projects can be found here: https://www.cogeothermal.com/gallery/. 109 9 Colorado Mesa University Colorado Mesa University (CMU) in Grand Junction established a goal to be the first American university to be fully heated and cooled by a geothermal heat pump system. The initial geothermal system was installed at CMU in 2007, with a central loop serving four new buildings and one existing building. The system was paid for using funds from the university’s annual budgets. Since then, there have been many additions, and currently, the geothermal loop system includes 3.5 miles of piping and serves 17 buildings (just over half of the university’s buildings) in an area occupying about half of a square mile. More additions are being planned for 2024 and will leverage grants from the State of Colorado and Inflation Reduction Act tax credits.15 The current system includes seven well fields, which circulate water and ethylene glycol at a constant 54°F year-round. Heat pumps and other equipment provide the heating and cooling needs of individual campus buildings. The CMU geothermal exchange system has been well- documented and is an example for college campuses nation-wide.16 One feature of the campus system, which is an advantage compared to a geothermal system serving a group of homes, is that some buildings have excess heat that can be efficiently transferred to other buildings that need heat, making the overall system much more efficient than one in which all buildings need to provide heating or cooling at the same time. For example, the initial system was designed to use about 200 feet of piping per ton of heating (or cooling), and now the system only requires 89 feet of piping per ton.17 The CMU geothermal system also achieves high levels of efficiency for both heating and cooling, with coefficients of performance ranging from 3.1-6.1.18 (The system achieves higher efficiencies (higher COPs) for heating or cooling during milder weather, and lower COPs during very hot or very cold weather.) Gunnison County Over the last seven years, Gunnison County on Colorado’s West Slope has constructed two new buildings with geothermal heat pump systems and retrofitted three existing buildings using geothermal systems, using a variety of funding sources. Existing buildings: ● Health and Human Services building – 11,600 square feet (SF) ● Blackstock government building – 26,200 SF ● Airport terminal – 48,000 SF New buildings: ● County courthouse – 45,900 SF ● Library – 15,000 SF 15 Cary Smith, Sound Geothermal, personal communication, November 30, 2023, dcsmith@soundgt.com. 16 “Geo-Grid System,” Colorado Mesa University, https://www.coloradomesa.edu/sustainability/initiatives/geo- grid.html. 17 Cary Smith, Sound Geothermal, personal communication, November 30, 2023, dcsmith@soundgt.com. 18 Hyunjun Oh and Koenraad Beckers, “Cost and Performance Analysis for Five Existing Geothermal Heat Pump- Based District Energy Systems in the United States,” National Renewable Energy Laboratory, https://www.nrel.gov/docs/fy23osti/86678.pdf. 110 10 The Health and Human Services building and the Blackstock government building are connected to the same geothermal system; all the others have a separate geothermal system for each building. To pay for the geothermal systems and other building improvements, the County assembled an impressive package of funding, taking advantage of a combination of sources:19 ● Local taxpayer-approved funding and annual budgets. Gunnison County residents voted in 2019 on how their tax dollars would be spent for a new library building on donated acres of land, and the results came back with strong public support to make the building all-electric. That tax funding, combined with a $1 million endowment from the rancher who donated the land, became the main source of funding for the library project. In addition, the County Commissioners approved using some of the County’s annual budget for building improvements. ● Energy performance contracts. The Blackstock building renovation was funded through an energy performance contract, which uses the project’s ongoing savings to gradually pay for the upfront costs. ● Lease-purchase agreements. Lease purchase agreements or Certificates of Participation are a finance mechanism available to local governments. This mechanism was used to finance improvements at Blackstock and the Courthouse. ● State grant funding. Colorado’s Department of Local Affairs (DOLA) has a grant program for local government and community projects, funded with sales taxes from energy extraction companies. The DOLA grant cycle is typically twice a year and can help cover the gap between internal cash flow and funding from energy performance contracts. Town of Carbondale With the help of a $700,000 grant from the U.S. Department of Energy (DOE), the Town of Carbondale is exploring the design and costs for a geothermal heat pump loop system to serve a group of buildings in downtown Carbondale. The loop could potentially serve several new and existing buildings, including the community center, a town administration building, the high school, the library, and multiple townhouses and condominiums. The project is being coordinated by Clean Energy Economy for the Region (CLEER), a nonprofit organization based in Carbondale, with input from the Town of Carbondale. The project is being designed by Grey Edge Group, a geothermal system design company with an office in Montrose, Colorado. CLEER is also applying for a second DOE grant, which could pay for up to 80% of the project costs.20 Best commercial applications Given the current GSHP looping supply constraints, discussed in more detail in the section on market development, we recommend that GSHP programs focus on non-residential market applications of the types shown below. This will help establish an annual GSHP installation demand in a set of larger 19 “Gunnison Does Away with Gas,” SWEEP, May 2023, https://www.swenergy.org/gunnison-does-away-with-gas/. 20 “A Colorado town wants to use geothermal energy to heat and cool a section of its downtown core,” Mark Jaffe, Colorado Sun, December 5, 2023, https://coloradosun.com/2023/12/05/geothermal-heat-cooling-carbondale- colorado-grant/. 111 11 applications, which will support the growth of GSHP looping businesses. Specifically, we recommend focusing programs and support on these applications: ● Schools (K-12)21 and college/university buildings 22 ● Local and state government buildings (medium-size or larger) ● New home developments or mixed-use developments The first two types of applications above are well established within the industry.23 The third one, geothermal networks for new home developments or mixed use developments,24 is an area with a lot of potential and growing interest nationally. Networks of this type could be explored by local governments, with the help of grants from the state or federal government, as in the Carbondale example above. Another exciting possibility is for gas or electric utilities to obtain authorization through legislation or state PUC rules to provide the financing for these types of geothermal networks. The utilities could be allowed to earn a return on their investment through monthly fees to the building owners, such as over a 20-year period. If shown to be cost-effective,25 geothermal networks could provide a new revenue source for gas utilities, while avoiding new gas piping infrastructure for new developments and contributing to state climate goals for the buildings sector.26 In Colorado, gas utilities are required by law to implement “Clean Heat Plans,” and geothermal networks are an excellent option for meeting a portion of their emission reduction requirements. Residential geothermal heat pump applications and modeling The residential GSHP market was first established in Colorado in the late 1990s and has been a mix of new and retrofit projects for early technology adopters, with annual installations of a few hundred per year.27 With increased awareness and financial support in the past few years, the residential industry is slowly growing in the new home market, with the customer base branching out beyond early adopters. However, a parallel and competing trend is that over the past 15 years, ASHP efficiencies have improved 21 Geothermal Heat Pumps Score High Marks in Schools, Office of Geothermal Technologies, September 1998. 22 “To Slash Carbon Emissions, Colleges are Digging Really Deep,” New York Times, January 23, 2024. 23 However, as mentioned above, further research would be useful to clarify which are the most cost-effective commercial building GSHP applications. 24 Note that networks of new homes would not have the advantage of load diversity, which a mixture of building types might offer, improving the overall efficiency of the system. On the other hand, if each home has its own separate GSHP, the system controls would be much simpler than for a more robust system, such as the Colorado Mesa University example above. 25 The life-cycle cost analyses should include the social cost of carbon emissions, and include all rebates and tax credits available for GSHP systems. 26 For more information on this topic, see “Networked Geothermal: A Warm Solution for a Cooler Planet,” University of Colorado, Masters of the Environment Graduate Program Capstone project, February 2024, forthcoming. 27 Dan Rau, Colorado Geothermal, personal communication, December 8, 2023, dan@cogeothermal.com. 112 12 by more than 30%,28 significantly reducing the efficiency gap between ASHPs and GSHPs. ASHP heating capacities in cold temperatures have also improved, widening their geographic viability. To clarify the question of whether GSHPs make sense for single-family homes in Colorado, and if so, at what size of home, we conducted some modeling and analysis. We compared the total costs for GSHPs versus ASHPs for two sizes of residential single-family homes, in several Colorado climate zones and near-surface geological conditions. Below we describe the main assumptions, highlight the results, and provide a summary of the main findings at the end of the section. We also provide more details on the modeling parameters in Appendix A. Annual heating and cooling cost modeling For the heating and cooling costs, we modeled several different scenarios and climate zones in Colorado. The map below shows the heating/cooling climate zones for Colorado. We present modeling results here for the following climate zones: ● Climate Zone 5 – Denver and eastern Colorado ● Climate Zone 6 – Eagle County 28 “Evolution of the Heat Pump,” Amana, https://www.amana-hac.com/resources/hvac-learning-center/hvac- 101/heat-pump-history-and-generations-evolution. 113 13 Note that Climate Zone 5 in western Colorado is very similar to Denver and eastern Colorado. Grand Junction has a slightly milder climate than Denver. The energy use and cost for Grand Junction would be ~3% less than the Denver modeled results.29 The following climate zones were not specifically modeled but results would be similar to the modeled zones: ● Climate Zone 4 in the southeast corner of the state: both the climate and ground temperature conditions in that corner of the state are more favorable than Climate Zone 5, so they can anticipate 10-20% lower operating costs for either GSHPs or ASHPs. ● Climate Zones 7 and 8 present several challenges for both GSHP and ASHP systems that drive up the costs, including a) higher elevations that reduce the capacity of both GSHP and ASHP systems, b) harsh climate conditions requiring more operating hours below 0°F, and c) lower earth subsurface temperatures that contribute to larger loop field requirements. Because of these challenges, for these zones we recommend ASHP systems with gas or propane supplemental heating. Assuming continued evolution of ASHP technology, the need for gas or propane supplemental heating will probably be unnecessary when homeowners are ready to replace their ASHP systems in 15 years. The table below shows the assumed efficiencies of the three types of HVAC systems we modeled. We chose these efficiencies because they represent a similar level of efficiency for the three types of HVAC systems – above-average but representative of several brands that are readily available. 🗲🗲 Efficiencies of HVAC equipment modeled Type of HVAC system Efficiency of heating and cooling Gas furnace and AC 95% AFUE, 18 SEER Cold-climate ASHP – ductless 10.5 HSPF, 18 SEER30 GSHP 3.7 COP, 18.2 EER 29 Climate Zone 5 also includes a sub-zone, “5a,” which includes the Front Range foothills in the 6,500 - 8,500’ elevation range (e.g., Estes Park, Nederland, Evergreen, Aspen Park, Woodland Park). This sub-zone is not identified on official climate zone maps, but its elevation and climate requires systems with higher capacities than Climate Zone 5 (but not quite as high as Climate Zone 6). The operating and installation costs are between Climate Zone 5 and Climate Zone 6. 30 For this system, we assume it is properly sized and will need very modest backup electric strip heating, as described in more detail in Appendix B. 114 14 Detailed modeling parameters are provided in Appendix C. The models consider any backup heating required for the various systems. Note that energy costs do not vary with soil conditions, only with location and climate zone. The annual heating and cooling costs below are based on homes with four- or five-ton heating loads. Four-ton was selected because that is the maximum house load that can be heated with the largest single unit residential ASHPs currently on the market. A new home with a four- ton heating load would be about 2,800 square feet in size, slightly larger than the average new home. 🗲🗲 Residential energy prices Energy Prices 31 Price ($) Date Winter gas ($/therm) $1.277 Average winter 2022-23 Winter electricity ($/kWh) $0.1402 January 2023 Summer electricity ($/kWh) $0.1443 August 2023 🗲🗲 Summary of energy modeling for four- and five-ton Homes Annual Energy Costs ($) Gas furnace and AC ASHP GSHP Location and size of home Heating Cooling Heating Cooling Heating Cooling Denver 4-ton $1,553 $174 $1,356 $171 $1,182 $173 Denver 5-ton $1,884 $210 $1,658 $222 $1,419 $214 Eagle 4-ton (4.2) $2,122 $107 $1,862 $99 $1,579 $94 Eagle 5-ton (5.3) $2,638 $124 $2,270 $134 $1,985 $124 Key highlights from our analysis are: 31 Residential energy prices are taken from the Energy Information Administration (EIA), https://www.eia.gov/electricity/data.php and https://www.eia.gov/naturalgas/data.php. 115 15 ● Heating costs for the cold-climate ASHP are about 12-14% less than for the gas furnace for both Denver and Eagle, for both sizes of homes. ● Heating costs for the GSHP are about 10-15% less than for the ASHP, for both Denver and Eagle, for both sizes of homes. It is important to note that the differences in annual heating costs between an ASHP system and a GSHP system can have a larger range than above, depending upon the selection and design of HVAC systems, especially the ASHP systems. For example, a GSHP system will reduce the annual heating bill by as little as 5-10% over an ASHP system with an HSPF of 12, and by as much as 20-25% over an ASHP with an HSPF of 9.5. The total annual cooling costs in Denver during a normal year are less than 15% of the annual heating costs, and only about 6% of annual heating costs in Eagle. The annual cooling costs for the AC, ASHP, and GSHP are almost the same, varying only by a few percent. The expectation that GSHPs should have a much lower cooling cost is offset by two factors: 1) in Colorado much of the cooling is at outdoor air temperatures below 85F where ASHP cooling is very efficient, and 2) the loop pumping energy for GSHP systems offsets much of the cooling efficiency advantage. For outdoor temperatures above the mid-80s, the GSHP cooling advantage offsets the pumping energy, and the GSHP cooling costs will be slightly less than for the ASHP. System first cost comparisons In this section, we present estimates of the range of drilling and HVAC system costs, focusing on new homes. (Geothermal heat pump retrofits of existing homes are much more challenging, for numerous reasons.) Drilling costs For GSHPs, there are several key drivers of the wide variation of drilling and installation costs across Colorado. These key drivers are: ● Effect of near-surface site geology on the loop field size ● Effect of near-surface site geology on drilling risks ● Loop field and indoor unit location ● Mobilization costs The loop field is designed and sized so that the fluid coming into the GSHP unit never goes below a certain temperature in the coldest portion of the winter. The colder the accepted design temperature, the smaller the loop field, but the lower the efficiency and capacity of the heat pump system. Considering this tradeoff, for Colorado a good loop design temperature is in the mid-30s°F (~35°F). The other factor contributing to determining the loop field size is the average ground temperature in the range of the loop field depth (200-400 feet). The colder the average annual temperature, which is reflected in a colder average subsurface ground temperature, the larger the loop that is required. The 116 16 average annual sub-surface temperature in Denver is ~6°F higher than in Eagle, which accounts for the loop field depth differences between Eagle and Denver shown in the table below. The table below is a specific example of the impact of the geology and location on the loop sizes for our models for three of the common ASHRAE geologic classifications for design.32 As shown, depending upon the geology, the loop field size (number and depth of boreholes) can vary by a factor of two. The table reflects the same hours of heating for a home located in Denver or Eagle. The home heating design load is slightly different for each because of the design temperatures shown. 🗲🗲 Geology and loop field size Location (design temperature) ASHRAE subsurface geology classification Home heating load (tons) Number of boreholes Depth of boreholes (ft) Denver (-1°F) Average rock 4 3 250 Denver (-1°F) Heavy damp 4 4 277 Denver (-1°F) Light damp 4 5 300 Eagle (-5°F) Average rock 4.2 5 263 Eagle (-5°F) Heavy damp 4.2 6 341 Eagle (-5°F) Light damp 4.2 8 354 Even with detailed geology maps, drillers never know the exact conditions they will encounter until they start the loop field. Here are a few examples of the risk and variability that can drive up drilling costs: ● Low risk: consolidated shales from top to bottom of the borehole, with lower thermal conductivity values. ● Low risk: granite and other metamorphic rocks in the high country, with higher thermal conductivity values. ● High risk/high cost: foothills transition zones throughout the state. Varying unconsolidated soils with boulders intermixed with rock layers. Thermal conductivity values can range from poor to good. 32These three ASHRAE geologic classifications are: 1) Average/Sedimentary Rocks: shale, sandstone etc.; 2) Heavy, Damp Soils: clay-rich soils with some moisture but not below the water table; and 3) Light Damp Soils: clay/sand mixed soils with some moisture but not below the water table. 117 17 Because of the factors noted above, the GSHP loop field installation cost has a wide range. The cost estimates below are prior to any tax credits or rebates. Note that the loop and equipment costs can vary by +/- 10% from the estimate in the table depending upon the local HVAC market. On the Front Range the loop prices will tend to be in the middle to low end of the range, while in the high country they will tend to be in the middle to high end of the range. 🗲🗲 Range of loop costs for new homes New home size (SF) Heating load (tons) Loop cost - low Loop cost - high 2,800 4 $35,000 $56,000 3,500 5 $43,750 $70,000 4,200 6 $52,500 $84,000 4,800 7 $61,250 $98,000 5,500 8 $70,000 $112,000 HVAC system costs As mentioned above, for the ASHP system, we chose an efficient cold-climate mini-split system. The largest available residential ASHP pumps have a standard rating of 4.5 tons (54,000 British thermal units (Btu)/hour (hr)), but for applications in Colorado these heat pumps have an effective capacity about 20% less than this rating, or about 43,000 Btu/hr or 3.5 tons. We estimate the initial cost of this system to be as shown in the table below. Homes with a heating load of five tons will require two ASHP systems, which makes the initial costs for the five-ton ASHP system significantly higher. The five-ton home only requires one GSHP system, because higher capacities of GSHP systems are available.33 33 The largest available residential GSHP pumps have a standard rating of 6 tons (72,000 Btu/hr). For applications in Colorado, these heat pumps have an effective capacity in the 5-6 ton range. For homes with loads of six tons or greater, you will generally need two or more systems for both the ASHP and GSHP options. However, for these larger homes, the price range is wide, and it is very difficult to make generalized pricing assumptions. 118 18 Total life-cycle costs In the tables below, we summarize the life-cycle costs for GSHPs versus ASHPs.34 🗲🗲 Life-cycle costs of GSHPs vs. ASHPs for Denver/Front Range Type of cost 4-ton home 5-ton home ASHP GSHP ASHP GSHP Initial cost - Equipment $28,000 $20,000 $40,000 $22,000 - Drilling (weighted avg. of low and high)35 0 $42,000 0 $52,500 Total initial cost $28,000 $62,000 $40,000 $74,500 Total initial cost (after tax credits and rebates) $22,100 $41,000 $33,600 $49,400 Net Present Value (NPV) of equipment replacement costs (after 15 years for ASHPs, 22 years for GSHPs)36 $13,470 $6,840 $19,240 $7,520 Energy costs - Annual Energy Costs (heating and cooling) $1,527 $1,355 $1,880 $1,633 - NPV of energy costs (25 years)37 $21,520 $19,100 $26,500 $23,010 NPV of total costs (25 years) $57,090 $66,930 $79,340 $79,930 34 We did not include the “standard HVAC” system in this comparison. But we have compared the initial costs of the standard system versus ASHPs for single-family homes and found the costs to be nearly the same. See https://loveelectric.org/for-builders-developers/. 35 These are based on the range of drilling costs shown in the previous table. For Denver/Front Range, we calculated the weighted average, giving the lower end of the range twice as much weight as the high end, and for Eagle, we weighted the high end twice as much as the lower end. 36 For ASHP systems, we assume the equipment needs to be replaced after 15 years, while we expect the GSHP equipment to last about 22 years. We used a discount rate of 5%. The GSHP equipment lasts somewhat longer because it is housed inside the building, facing less extreme temperatures. 37 Again, using a 5% discount rate and no energy price escalation beyond inflation. 119 19 🗲🗲 Life-cycle costs of GSHPs vs. ASHPs for Eagle Type of Cost 4-ton Home 5-ton Home ASHP GSHP ASHP GSHP Initial cost - Equipment $28,000 $20,000 $40,000 $22,000 - Drilling (weighted average of low and high) 0 $49,000 0 $61,250 Total initial cost $28,000 $69,000 $40,000 $83,250 Total initial cost (after tax credits and rebates) $22,100 $45,900 $33,600 $55,525 NPV of equipment replacement costs (after 15 yrs for ASHPs, 22 years for GSHPs) $13,470 $6,840 $19,240 $7,520 Energy costs - Annual energy costs (heating and cooling) 1,961 1,673 2,404 2,109 - NPV of energy costs (25 years) $27,640 $23,580 $33,880 $29,720 NPV of total costs (25 years) $63,210 $76,320 $86,720 $92,770 For Denver/the Front Range, as shown above, for the four-ton home, the total life-cycle costs for the ASHP system are lower than the costs for the GSHP system (by ~16%); while for the five-ton home, the total life-cycle costs of the GSHP system are about the same (within 1%). (Note that all our cost estimates are only accurate within about 5-10%.) Also note that the rebates and tax credits for GSHPs are much more generous, which helps make the total costs for the homeowner closer to those for ASHPs. For a home in Eagle, even for the five-ton home, the GSHP system has higher life-cycle costs than the ASHP system (by ~6%), because of the higher drilling costs in the high country. It would take a slightly larger home, perhaps with at least six tons of heating demand, for the GSHP system to be cost-effective in the high country. 120 20 GHG emission reduction benefits of GSHPs In the table below, we provide the calculated GHG emissions for the gas furnace and AC, ASHP, and GSHP systems, for both four- and five-ton homes, for Denver/Front Range. Largely because of the transition of Colorado’s power generation to renewable resources over the next 16-20 years,38 the GHG emission reductions for both ASHPs and GSHPs are 69-73% compared to emissions for the gas furnace home.39 The additional GHG emission reductions for GSHPs compared to ASHPs (3-4%) are not very significant, especially compared with the total life-cycle costs. As shown, from a societal point of view, the cost of the GHG emissions reduced from GSHPs compared to ASHPs is very expensive, $2,300-$4,200 per metric ton of carbon dioxide equivalent.40 38 Colorado has set a goal to achieve 100% renewable electricity by 2040. In practice, this may take slightly longer, but all of Colorado’s major utilities, which account for over 90% of the state’s electricity generation, have plans to achieve at least 80% GHG emission reductions by 2030. 39 We used projected electricity emission factors for Colorado from NREL, found here: https://scenarioviewer.nrel.gov/?project=a3e2f719-dd5a-4c3e-9bbf- f24fef563f45&mode=download&layout=Default. NREL offers several scenarios for projected emission factors, from which we chose the average of two scenarios; the “mid-case 95 by 2035” and the “mid-case 95 by 2050.” In addition, we chose the long-term marginal emission factors for these scenarios. We discuss these choices further and provide these emission factors in Appendix D. 40 Note that the federal social cost of carbon, one indicator of the societal costs of GHG emissions, is currently only about $83/metric ton of CO2e. See https://19january2017snapshot.epa.gov/climatechange/social-cost- carbon_.html. However, there are proposals to increase this to $190/metric ton of CO2e. See https://www.nytimes.com/2023/12/02/climate/biden-social-cost-carbon-climate-change.html. 121 21 🗲🗲 GHG emission reductions from GSHPs vs. ASHPs for Denver/Front Range GHG emissions 4-ton home 5-ton home Furnace and AC ASHP GSHP Furnace and AC ASHP GSHP Heating therms 1,128 1,409 Annual heating and cooling electricity consumption (kWh) 2,012 10,858 9,621 2,063 13,370 11,601 Total GHG emissions (metric tons CO2e, 25 years) 158.9 49.6 43.9 196.5 61.1 53.0 Percentage reduction compared to furnace 68.8% 72.4% 68.9% 73.0% Emissions benefits for GSHP vs. ASHP (metric tons CO2e, 25 years) 5.6 8.1 NPV of 25-year costs (with rebates and credits) $57,090 $66,000 $79,340 $78,910 NPV of 25-year costs (full costs with no rebates) $62,990 $87,000 $85,740 $104,010 Increased NPV costs for GSHP $24,010 $18,270 Cost of emissions saved ($/metric ton CO2e, full costs with no rebates and credits) $4,250 $2,260 Summary for single-family homes For average-size single-family homes, those with heating loads of four tons or less, our analysis shows that ASHPs have much lower initial costs, which more than offset the slightly higher heating and cooling costs compared to GSHPs, resulting in a lower NPV cost over 25 years. For homes with heating loads of five tons, approximately 3,500 square feet in size for Denver/Front Range (or slightly greater than five tons for larger homes in the high country),41 homeowners that can afford the additional upfront costs of 41 The estimate of 3,500 square feet is based on a home that meets the 2021 IECC, which will be required in more and more Colorado cities and counties as they update their building codes. 122 22 the GSHP system should consider obtaining designs and contractor bids for both ASHP and GSHP systems. The GHG emissions for single-family homes with GSHPs are only slightly smaller than for homes with ASHPs, especially compared to the large reduction in emissions for both heat pump technologies versus homes heated with a gas furnace. Because of the small GHG emissions benefits of GSHPs compared to ASHPs, in our opinion there is much less of a need for further state assistance regarding the residential GSHP market, particularly given that there is already an abundance of tax credits and utility rebates for GSHPs (see Appendix A). GSHP market development challenges GSHP drilling and installation businesses have had a niche presence in Colordao since the mid-1990s. The annual demand for projects has mainly involved residential installations with a few larger commercial projects. The GSHP loop supply chain and the market demand have been stable and in balance with little overall annual growth. However, over the past five years, there has been an increasing desire for growth in the industry, driven by greater awareness of GSHP technology, and by the desire to achieve reduced GHG emissions from buildings. The major challenge to developing a more impactful GSHP market in Colorado will be the need to significantly expand the supply of vertical loop field installation contractors. Currently the backlog for vertical loop installation is several months.42 At present, there are only six geothermal contractors who are licensed by the Colorado Department of Water Resources to drill and install geothermal piping loops as of April 2023: 1) Bertram, Dilling, Inc. 2) Can-America Drilling, Inc. 3) Colorado Geothermal Drilling 4) Just Geo Loops, Inc. 5) Panterra Energy 6) Standard Geothermal Solutions, LLC The commercial GSHP market in Colorado is mainly served by Can-America Drilling, Colorado Geothermal Solutions, and Panterra Energy, which are located on the eastern plains and Front Range. In addition, there are only four vertical loop drilling operations outside of Colorado but within 500-1,000 miles, with the resources and experience to travel to Colorado for large commercial jobs.43 What’s more, large mobilization and demobilization fees negatively impact the economics for these operators to undertake projects in Colorado. 42 Dan Rau, Colorado Geothermal Drilling, personal communication, December 8, 2023, dan@cogeothermal.com; Brian Fowler, GeoSource Distributors, personal communication, December 15, 2023, brian.fowler@geosourcedistributors.com. 43 Dan Rau, Colorado Geothermal Drilling, personal communication, December 8, 2023, dan@cogeothermal.com; Brian Fowler, GeoSource Distributors, personal communication, December 15, 2023, brian.fowler@geosourcedistributors.com. 123 23 Currently, a significant portion of GSHP activities in Colorado are focused on single-family homes on the Front Range.44 Three of the above looping companies, Colorado Geothermal Drilling, Can-America Drilling, and Standard Geothermal Solutions, work on residential GSHP systems.45 The first two mainly focus on commercial GSHP projects and do residential projects as their schedules allow.46 Building an expanded workforce of GSHP drilling and looping specialists is the biggest challenge to expanding the looping industry. Because of the complexities of the subsurface, the skills needed to operate a GSHP drill rig can only be learned on the job. In addition to finding workers willing to do this work, the costs and challenges of training and retraining workers can be significant. The scope and complexity of a GSHP drilling operation is similar to water well operation, so there is some potential for re-training of water well drillers. GSHP drilling is very different from oil and gas drilling operations, so retraining those workers would be a bigger challenge. In addition to the market and workforce challenges, there are financial and capital issues. We estimate that the drill rigs and associated pumping and looping equipment needed to handle the wide variety of geologic conditions in Colorado requires a minimum of $500,000 - $750,000 in capital for a residential operation. For commercial operations, the capital requirements would be several times this amount. While this might not seem like a large investment to start a business, the financing requires a minimum consistent level of GSHP business throughout the year and over a several year period to ensure business survival. The challenge that GSHP drilling and looping contractors have faced since 2000 is the overall limited and sporadic nature of the GSHP market in Colorado. One factor in this weak demand has been the historically low natural gas prices. However, with the growing interest in building electrification and decarbonization and the influx of funding from the state and federal government, there are opportunities to sustainably grow the GSHP market for commercial applications. Conclusions and recommendations Both ASHPs and GSHPs significantly reduce carbon emissions from the heating of residential and commercial buildings compared to gas or propane heating. ASHPs have lower initial costs than GSHPs and make sense for most single-family homes and many small- or medium-size commercial buildings. GSHPs offer slightly better energy efficiency than ASHPs as well as slightly reduced GHG emissions, but have higher initial costs because of the significant costs of drilling and installing the underground pipes. Therefore, GSHPs will be more cost-effective and offer the greatest benefits for the following applications: ● Schools (K-12) and college/university buildings ● Medium-size and larger commercial buildings 44 For example, in 2023 there were 108 GSHP loops constructed in Colorado, and more than half of these were residential installations. See Colorado Division of Water Resources, Decision Support Systems Database, (provide link) 45 Dan Rau, Colorado Geothermal Drilling, personal communication, December 8, 2023, dan@cogeothermal.com; Brian Fowler, GeoSource Distributors, personal communication, December 15, 2023, brian.fowler@geosourcedistributors.com. 46 Terry Proffer, Major Heating, personal communication, January 2, 2024, tproffer@gomajornow.com. 124 24 ● Geothermal networks for new home developments or a mix of residential and commercial buildings GSHP market development Since there are currently only a few contractors that are completing these types of larger projects, stakeholders will need to work together to support the required investment in equipment and workers needed to increase the capacity of the GSHP drilling industry. Growing the commercial drilling and looping industry and equipment installation supply chain in Colorado, focusing on the priority applications listed above, will take sustained leadership from the CEO, in collaboration with the Colorado Geothermal Energy Advisory Group, utilities, and the investment community. We recommend that the CEO and the Geothermal Advisory Group explore the following strategies: Front Range/Eastern Plains. For commercial projects on the Front Range or eastern plains, we suggest exploring three approaches to expand GSHP industry capacity: 1) Hold discussions with Can-America, Panterra, and Bertram Drilling to understand and determine the required annual revenue from GSHP commercial projects that will be required for them to expand their presence in Colorado. 2) Collaborate with utilities and investors to develop a sustainable business model for large scale commercial looping operations, either as utility-owned subsidiaries or new businesses with adequate financial and focused market support. 3) Work with the CWWCA and the ~30 water well contractors on the Front Range and eastern plains to present the opportunity and encourage a few members to grow into the GSHP loop business with capabilities to take on medium to large commercial projects. High Country. In the high country, the challenge is complicated by the additional geologic risks associated with drilling and the shortened looping season (6-7 months versus 10-11 months on the Front Range). We suggest working with the CWWCA to develop a plan and investment strategy to encourage and support a few members to grow their operations into the GSHP looping business focused on medium-sized commercial jobs in some of the markets described below. There are currently ~15 water well drilling companies in the high country. The equipment, cost, expertise, and complexity of water well drilling and GSHP loop installation are in many ways similar and are complementary business endeavors. CanAmerica drilling is a Colorado company that has been operating under this dual business strategy for at least 20 years. This is the most likely avenue to expand GSHP capacity in the high country. State grant programs As described above, there is already a generous amount of state funding and utility rebates for geothermal heat pump systems for all types of applications. Because of limited capacity, we feel that the limited state Geothermal Energy Grant Program funds should be focused on the following types of GSHP projects: 125 25 ● Public schools, community colleges, and state universities ● Government buildings and complexes ● Nonprofit medical facilities ● Networks of new residential and commercial buildings For large GSHP demonstration projects, we recommend the following process to ensure adequate system performance: ● Independent design review prior to installation approval ● Post-installation performance testing validation Other state support The state PUC should encourage Colorado’s gas and electric utilities to complete demonstration projects of geothermal networks for new home development (or other new building developments), and to compare the life-cycle costs of the GSHP networks versus gas heating technology and gas piping infrastructure for the buildings. If shown to be cost-effective, this would provide a new revenue stream for gas utilities, while contributing to the state’s climate goals for the buildings sector. Other GSHP applications, such as private colleges, medical facilities, or commercial buildings, do not require additional funding other than the tax credits and utility rebates already available for developers. However, we do encourage the CEO to provide ongoing non-financial support and to encourage developers to undertake limited-risk projects to demonstrate the market potential. The goal of these projects should be to identify which market applications will provide steady and adequate financial opportunities over the next two decades to support the capital influx required to establish a strong commercial looping industry capacity in Colorado. As discussed above, we anticipate that the residential GSHP market will remain a niche market for large single-family homes on the Front Range and in the high country. This market will continue to grow organically via small GSHP businesses and therefore does not require additional state resources. By focusing its resources on the most promising, cost-effective applications, Colorado can demonstrate GSHPs’ contribution to the path toward more sustainable and lower carbon buildings. In doing so, we can also set an example for other states. 126 26 Appendices Appendix A - Rebates, tax credits, and grants There are a variety of utility, state, and federal rebates and incentives for geothermal heat pump systems, for both commercial and residential buildings, which we summarize below. Utility rebates Many Colorado utilities provide rebates for new geothermal heat pump systems. For example, Xcel Energy provides rebates of $600/ton for residential or commercial ground source heat pumps that meet its minimum efficiency criteria. State tax credits The State of Colorado offers the following state tax credits for geothermal heat pump systems in 2024- 26 (with the rebate amounts decreasing gradually in subsequent years):47 🗲🗲 State tax credits Type of building GSHP rebate amount Residential - single-family $3,000 per home, of which $1,000 goes to the homeowner, and $2,000 to the installer 48 Residential - multi-family $3,000 per unit Commercial $3,000 for each 4 tons of heating capacity (e.g., $6,000 for an 8-ton system) State geothermal energy grant program In addition to the state tax credits, the CEO is administering a state GSHP grant program based on legislation passed in 2022.49 Building owners, developers of new buildings and others are eligible to apply for grants for GSHP systems or geothermal networks for groups of buildings. The grants for GSHPs are limited to the following amounts: 47 C.R.S. 39-22-554, https://leg.colorado.gov/sites/default/files/documents/2023A/bills/2023a_1272_rer.pdf. 48 Bryce Carter, personal communication, Colorado Energy Office, December 18, 2023, bryce.carter@state.co.us. 49 C.R.S. 24-38.5-118, https://leg.colorado.gov/sites/default/files/documents/2023A/bills/2023a_1252_rer.pdf. 127 27 🗲🗲 Colorado geothermal heat pump grants Type of building GSHP grant limit Single-family home $2,000 per ton, up to $10,000 (5 tons) Commercial or nonprofit organization $3,000 per ton, up to $300,000 (100 tons) Commercial and business $2,000 per ton, up to $200,000 (100 tons) Geothermal network for multiple buildings See section 4.b. of the legislation Note that a homeowner or building owner could potentially take advantage of the state tax credit and also apply for and obtain a state grant for a GSHP system. Federal tax credit Owners of new or existing homes or commercial buildings that install a geothermal heat pump system can receive a federal tax credit for 30% of the cost of the GSHP, under Sections 25D (Residential) or 48.a. (Commercial) of the Inflation Reduction Act. Appendix B - Understanding heat pump capacities, sizing, and supplemental electric heating Heat pump capacities and ratings The standard capacity labels for equipment are somewhat misleading for Colorado, which can lead to inadequate design and sizing in many cases. The standard term for communicating the size of a specific heat pump unit is tons (e.g., 1 ton = 12,000 Btu/hr, 3 tons = 36,000 Btu/hr, etc.). The tons are reflected in the serial number of the unit: • Model 4TTZ0036A1000AA is a 3 ton unit • Model 4TTZ0048A1000AA is a 4 ton unit There are standard heating and cooling capacity ratings, certified by the American Heating and Refrigeration Institute (AHRI), and additional standard capacity ratings provided by the manufactures of GSHP and ASHP equipment. GSHP capacity ratings ● AHRI capacity ratings: Provided for two entering water temperatures (EWTs) from the loop into the heating unit: ○ 50°F ○ 32°F ● Additional capacity ratings are provided by most manufacturers, including for EWT of 40 F. 128 28 ASHP capacity ratings ● AHRI capacity ratings: Provided for two outdoor air temperatures: ○ 47°F ○ 17°F ● Additional capacity ratings provided by most manufacturers of cold-climate ASHPs, for outdoor air temperatures of: ○ 5°F ○ -13°F Elevation effects on GSHP and ASPH capacities Both ASHP and GSHP heat pump system capacities are rated at sea level. At higher elevations, because thinner air has less capacity to hold heat, the capacities of ASHP and GSHP water-to air systems must be adjusted down to reflect the capacity at the specific elevation of the home or building. In Colorado this adjustment can range from 5% to 25%. For GSHPs and ASHPs that use radiant/hydronic systems, there is also an adjustment but it is near zero for GSHP and less than 15% for ASPH systems. In the sizing discussion below the elevation corrections to system capacities must be taken into account during system design. GSHP sizing for new homes When sizing a GSHP system for a Colorado home or commercial building, designers and contractors must: 1) Choose a GSHP unit with enough capacity (when the ground loop is sized to a minimum EWT of ~35F) to heat the home in the winter to at least -1°F in the front range and at least -5°F in the high country. 2) Size the ground loop based on the building needs, geology and climate. In Colorado, ground loops are designed to ensure the EWT into the unit is ~35°F in the winter, not 50°F (loops designed for 50°F would be so large as to be economically impractical). 3) For the relatively few hours per year (less than 50) that the outdoor temperature goes below - 1°F or -5°F, decide whether to upsize the GSHP unit and loop or add some supplemental auxiliary electrical heat. Normally it is more cost effective to add some supplemental auxiliary heat. ASHP sizing for new homes 1) Choose a cold-climate ASHP (inverter-driven unit) which has enough capacity to heat the home in the winter to at least 0F in the front range and the high country. 2) For the relatively few hours per year (<100) that the outdoor temperature goes below 0°F, the ASHP and supplemental electric, gas or propane heating will share the heating load. The designer will need to determine the most cost-effective and operationally efficient balance between how much to upsize the ASHP unit and how much supplemental heating capacity to add. 3) Compensate for altitude. 129 29 GSPH and ASPH sizing for existing homes The process for existing homes is generally the same as for new homes (above), with two key points that normally will change the sizing strategies. 1) Homes/buildings with existing duct systems were designed to heat the home with furnace heating. Furnace air (130-140°F) is much warmer than heat pump system air (95-100°F). Duct systems that were designed for furnaces are large enough to provide full house heating down to an outdoor temperature typically in the range of 15-20°F when used with a heat pump system. Below that temperature range, the duct system is normally inadequate for full heating with a heat pump system. If upgrading the duct system is not feasible, the ASHP or GSHP can be sized to heat the home to 10-20°F outdoor temperature, and the supplemental backup system will take more of the heating burden below that temperature range (this is still a relatively small portion of the annual heating load; see Appendix E). 2) The existing home might have a limit on electric capacity such that it cannot support both a heat pump system and electrical supplemental backup. In this case, a hybrid ASPH and furnace system is a cost-effective solution. Supplemental electric heat for ASHP and GSHP systems in new homes When considering the need for electrical supplemental heating with GSHP or ASHP systems for new homes, there are two common misconceptions: 1) GSHP systems don't need any electrical supplemental heating. 2) ASHP systems need excessive amounts of electrical supplemental heating that is burdensome to the electrical system. Heat pump systems are sized to fully meet the home heating needs at a design outdoor temperature, as established by ASHRAE and the Air Conditioning Contractors Association (ACCA) for most cities and towns in the U.S. For example, in Denver, that design temperature is -1°F (ASHRAE, 2017, 99.6%). A well- designed heat pump system will fully heat the home to this temperature, -1°F, without any supplemental heating. However, there are several reasons why supplemental electrical heat is still needed for both ASHP and GSHP systems. First, some electrical backup heat is required in the event there is a problem with the heat pump compressor. The electrical backup provides some heat to the home to keep the home livable (i.e. above freezing) should the compressor system ever break down and need repair. The table below shows the electric strip heating requirements to keep the home above freezing when the outdoor temperature is 12°F. 3 ton home 4 ton home 5 ton home Electric heat required (12°F outdoor, 33°F indoor) 3.5kW 4.5 kW 5.5kW 130 30 For an ASHP system, in additional to the above, there is also a need for electrical strip for the following reasons: 1) The heating requirement of the home at design temperature may require slightly more heat than the closest heat pump system size can produce. 2) When the outdoor temperature drops below the design temperature, more heat is needed to fully heat the home. 3) When ASHPs operate below the outdoor design temperature, they will lose some heating capacity. Heat pumps come in specific heating capacities (sizes), with increments of ½ ton: ● 3 ton - 36,000 btu/hr (fits homes with design needs of 36,000 - 39,000 btu/hr) ● 3.5 ton - 42,000 btu/hr (fits homes with design needs of 40,000 - 45,000 btu/hr) ● 4 ton - 48,000 btu/hr (fits homes with design needs of 46,000 - 51,000 btu/hr) ● 4.5 ton - 54,000 btu/hr (fits homes with design needs of 52,000 - 57,000 btu/hr) ○ Note that currently 4.5 ton is the largest ccASHP readily available on the market) ● 6 ton - 60,000 btu/hr (fits homes with design needs of 58,000 - 63,000 btu/hr) Example. For an ASHP system for a home in the Denver area, here is an example illustrating the sizing of supplemental electrical heat. The heating load for this example home at -1°F is 44,000 Btu/hr. The perfect match is a heat pump that will produce 44,000 Btu/hr at -1°F. It is rare to find a perfect match. The goal is to find the closest match that is slightly under or slightly over the need. In this case, it would be a 3.5 ton system that produces 42,000 Btu/hr at -1°F. Typically, if a designer can find a system within 3000 btu/hr (¼ ton) of the design heating needs that is the best sizing, otherwise it’s best to jump up one half ton. Heating Design Load Shortage to meet with supplemental: 44,000 - 42,000 = 2,000 Btu/hr In an average year the outdoor temperature in Denver will go below -1°F down to -13°F, for about 30- 50 hours. The heating need of this home at -13°F will be 17% more than the heating need at -1°F. Thus at -13°F the heating need will be: 44,000 btu/hr * 1.17 = 51,480 Btu/hr Extra heat required at -13°F to meet with supplemental: 51,480 - 44,000 = 7,480 Btu/hr At an outdoor temperature of -13°F, ASHP systems have a lower heating capacity than at -1°F, even cold climate units. This drop off will vary by equipment, but 25% is a typical number to use. ASHP Extra heat required at -13°F from capacity shortage: 42,000 * .25 = 10,500 Btu/hr For GSHPs, there is also a need for supplemental heating for the following reasons: 1) The heating requirement of the home at the design temperature may be slightly more than the closest heat pump system size can produce. 131 31 2) When the outdoor temperature goes below the design temperature, this requires additional heat to fully heat the home. For GSHPs, the loop can be enlarged beyond the normal design (i.e. to meet the home heating needs at the standard outdoor design temperature) to meet the needs at the coldest outdoor temperature. However, the additional loop added can be quite expensive to ensure heating for <50 hours per year when a small additional amount of supplemental electrical heating (very inexpensive to add) can provide the additional heating necessary. The three types of shortages for the Denver example above are summarized in the table below. 🗲🗲 Summary of calculation of supplemental heating needed (4-ton home) ASHP GSHP Design shortage (Btu/hr) 2,000 2,000 Extra heat needed at -13°F 7,480 7,480 Capacity decrease at -13°F 10,500 0 Total (Btu/hr) 19,980 9,480 Btu/hr per kW conversion 3,412 3,412 Total strip heat needed (kW) 5.9 2.8 Rounded up to available size (kW) 6 3 The table below was generated working through similar calculations for different sizes of homes, and it also includes the backup electrical heating needs to keep the house livable when there is a compressor problem. 🗲🗲 Summary of backup heating needs Heat pump system 3-4 ton home 5-ton home ASHP – ducted 3-8 kW 6-10kW ASHP – ductless 3-6 kW 6-9 kW GSHP 3-5 kW 5-7 kW 132 32 Note that indoor units of ductless ASHP systems can be oversized slightly and can shift heating between different parts of the home when it is cold. Essentially resulting in the systems having slightly more capacity than ducted ASHP systems, thus reducing the supplemental heating needs somewhat. While not a need, an additional benefit of the electrical supplemental heating is much faster home warm-up capacity, such as when returning from vacation. Colorado climate heating requirements - not as cold as you think When considering heat pump systems for buildings in Colorado there is a strong focus on heating when the outdoor temperature is below zero. While the systems must keep buildings warm at the coldest temperatures, the majority of heating in Colorado is during milder temperatures. For an average year: In the Front Range (Denver): ● Above 0°F outdoor temperature: >95% of the annual heating energy use. Over 2,000 hours of heating. ● Below 0°F outdoor temperature: <5% of the annual heating energy use. Less than 100 hours of heating. In the High Country (Eagle): ● Above 0°F outdoor temperature: >90% of the annual heating energy use. Over 3,500 hours of heating. ● Below 0°F outdoor temperature: <10% of the annual heating energy use. Less than 200 hours of heating. Appendix C - modeling parameters Heating load - Same house model ● Denver: -1°F (99.6 percentile) - 48,200 (4.0 tons) ● Eagle: -5°F (99.6 percentile) - 50,600 btu/hr (4.2 tons) Equipment ● Furnace AFUE .95, AC SEER 18 ● ASHP 10.5 HSPF, SEER 18 ● GSHP Waterfurnace 500 series. Up to 19.1 EER, 6.4 COP. Bin data ● Denver Stapleton - ASHRAE 2017 ● Eagle County Regional - ASHRAE 2017 Mean Earth temperature for loop 133 33 ● Denver: 52°F ● Eagle: 46°F Altitude system air density deratings (ASHP ductless indoor or GSHP indoor air handler unit, 72°F) ● Denver: 18% ● Eagle: 23% GSHP loop common parameters used in the modeling ● Borehole pipe: 1” (Note: .75” pipe is also used as an alternative to 1” in many installations) ● Manifold pipe: 1.25” ● Loop fluid: 15% methanol (Note: Propylene glycol is also used in many loop installations) ● Borehole spacing: 15’ (Note: borehole spacing for residential ranges from 15 to 20’ in actual installations) ● Borehole depth range: 250’ - 350’ GSHP loop sized to meet minimum loop fluid temperature during winter heating season: 35°F Change over temperature from all heat pump heating to heat pump/supplemental combo. Denver - GSHP: -13°F (3kW), ASHP 12°F (7kW) Eagle - GSHP - 0°F (5kW), ASHP 12°F (9kW) Cost and energy use of the supplemental heating is fully accounted for and a very small percentage of the total energy used for heating (GSHP <1%, ASHP <7%) Cooling efficiency of GSHPs versus ASHPs Why does the modeling show such a small percentage difference between GSHPs and ASHPs? There are two main reasons that the difference is rather small. 1) There have been dramatic improvements in ASHP cooling efficiency over the past 10-15 years. a. ASPHs have had a dramatic increase in cooling efficiency. A SEER 18 system is nearly 30% more efficient than an old SEER 14 system. The top ASHP units now have a SEER ratings in the 20-25 range. b. At lower speeds, inverter-driven ASHPs have SEER’s that are in the range of SEER 23-25. c. At temperatures below the mid-80s°F, ASHPs operate at low speeds and can be equal to or more efficient at cooling than a GSHP; in the mid-80s the systems are generally comparable. It is only when the outdoor temperatures get above the mid-80s that GSHP are more efficient. 2) Colorado’s cooling needs are considerably less than many parts of the country. a. In any given year, only 20-25% of Colorado’s annual cooling occurs when the outdoor temperatures are above the mid 80s. b. In any given year, only 20-30% of the annual cooling is when the outdoor temperatures are in the mid 80s. 134 34 c. In any given year, the majority of cooling (50-55%) occurs when the outdoor temperatures are below the mid 80s. d. The above statistics are for the Front Range and Western Slope (climate zone 5). In the high country, even less of the cooling requirements are at high outdoor temperatures. Appendix D - GHG emission factors We used projected electricity emission factors for the State of Colorado from the National Renewable Energy Laboratory (NREL).50 NREL offers several scenarios, of which we chose the average of the “Mid- Case 95 by 2035” and “Mid-Case 95 by 2050” scenarios, which are the closest to Colorado’s goal of achieving 100% (or nearly 100%) renewable electricity generation by 2040. NREL also offers several choices for GHG emission factors, and we chose the “long-range marginal emission rate.” The marginal emission rates (as opposed to the annual average emission rates) are appropriate for analyzing questions like, “what will be the effect on the grid of policies and programs that encourage more electrification of buildings?” which seems appropriate for this study. In addition, we chose the marginal emission factors for SWEEP’s previous heat pump studies,51 and we wanted to be consistent with those. These emission factors are shown in the table below. 50 “Cambium,” NREL, 2021, https://scenarioviewer.nrel.gov/?project=a3e2f719-dd5a-4c3e-9bbf- f24fef563f45&mode=download&layout=Default. 51 “Benefits of Heat Pumps for Colorado Homes,” SWEEP, February 2022, https://www.swenergy.org/directory/co- heat-pump-study-feb-2022/; and “Benefits for Heat Pumps for Southwest Homes,” SWEEP, June 2022, https://www.swenergy.org/directory/sw-heat-pump-study-may-2022/. 135 35 🗲🗲 Projected electricity GHG emission factors for Colorado Projected Marginal GHG Emission Rate (kg CO2e/MWh) Year Mid-Case 95 by 2035 Mid-Case 95 by 2050 Average of two scenarios 2024 398.6 415.8 407.2 2026 339.7 380.7 360.2 2028 277 356.2 316.6 2030 210.5 325.4 268.0 2032 143.2 301.6 222.4 2034 80.5 275.3 177.9 2036 41.1 248.3 144.7 2038 21.1 221.1 121.1 2040 19.4 190.1 104.8 2042 20.4 155.2 87.8 2044 22.1 120 71.1 2046 16.8 90.3 53.6 2048 15 64.8 39.9 25-year average 182.7 The Southwest Energy Efficiency Project (SWEEP) is a public interest organization promoting greater energy efficiency and clean transportation in Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming. swenergy.org 136 2 3 3 4 B r o a d w a y S t e A , B o u l d e r , C O 8 0 3 0 4 3 0 3 -4 4 7 -0 0 7 8 • s w e n e r g y .o r g R E P O R T F o r m o r e r e p o r t s , v i s i t S W E N E R G Y .O R G 137 AGENDA ITEM NO. 2.3 Item Cover Page DATE:February 20, 2024 TIME:30 min. SUBMITTED BY:Greg Roy, Community Development ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:West Vail Commercial Update SUGGESTED ACTION:Staff will present an overview of Chapter 2, run through each of the three design scenarios, and ask for feedback from Council during the presentation. PRESENTER(S):Matt Gennett, Director of Community Development VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Council Memo WVMP Phase 2.pdf West Vail.pdf 138 Page | 1 TO: Vail Town Council FROM: Community Development Department DATE: February 20, 2024 SUBJECT: Presentation and Discussion – West Vail Master Plan Phase II Implementation ___________________________________________________________________________ I. DESCRIPTION OF REQUEST Staff requests Council to review the information presented and provide feedback on the implementation of Chapter 2, West Vail Center, West Vail Master Plan. II. BACKGROUND The West Vail Master Plan, adopted by Council in November 2021, includes three scenarios for the future redevelopment of the commercial area in West Vail . These scenarios offer three realistic design models for redeveloping and enhancing West Vail Center. • Scenario 1 is a “quick wins” strategy, in which primary improvements could occur in the five years following the adoption of this plan . • Scenario 2 presents a phased approach, in which property owners individually redevelop their properties at different points in time . • Scenario 3 presents a “master-planned” option in which the redevelopment for all properties is planned together, then built over time. Implementation of any scenario will require changes to Title 12: Zoning Regulations, Vail Town Code. Design principles to guide these modifications are contained within the plan. Each scenario represents one pathway to a reimagined West Vail Center. The plan does not recommend any one scenario over another. Rather, Chapter 2 contains detailed descriptions of each scenario and outlines the potential as well as the barriers to overcome. Taken together, the scenario descriptions are intended to serve as a guide to redevelopment that will assist the Town of Vail in evaluating any feasible development concept. III. DISCUSSION Staff will present an overview of Chapter 2, run through each of the three design scenarios and ask for feedback from Council during the presentation. IV. ACTION REQUESTED Staff asks Council to review the presentation and provide feedback on immediate next steps. 139 140 West Vail Center 141 West Vail Center EXISTING CONDITIONS 142 West Vail Center WHY CHANGE? •Economic competitiveness •Strip style commercial doesn’t meet Vail Land Use Plan vision •Aesthetically lacks sense of place •Primarily car-oriented •Vail lacks developable land, yet demands more housing and commercial 143 West Vail Center MARKET OPPORTUNITIES •Low Real Estate Supply • Businesses going down valley •Highway Visibility/Location •Only convenience stop between Summit County and Eagle-Vail •Healthy Commercial Rents •Healthy Retail Sales •Property Ownership •Limited number of parcels 144 Vision: West Vail Center “The reimagined ‘West Vail Center’ is the center of economic and social life in West Vail. It’s a place to meet a friend for a cup of coffee, conveniently pick up groceries and other essentials, and access transit connections to the rest of the town and valley. As the western gateway to the Town of Vail, the commercial center is aesthetically pleasing and inviting, with new and upgraded buildings that reflect the neighborhood’s scale and mountain setting while providing much-needed resident housing. The area’s new pattern of development is oriented to pedestrians, accommodating to bicyclists, and accessible by both car and transit. Vibrant, active businesses in the commercial area serve both locals and visitors, supporting and meeting the needs of West Vail’s year-round community.” West Vail Center145 Summary of Goals 1.Town works collaboratively to improve economic vibrancy and provide housing 2.Expand housing opportunities in West Vail Center 3.Ensure comfortable and efficient access for people using all transportation modes 4.Retain essential businesses that serve Vail’s year-round community 5.Attract new businesses that support social life (e.g. coffee shops) 6.Create an inviting, human-scaled environment within West Vail Center 7.Maintain an aesthetic that is distinctive and memorable, yet suits West Vail’s mountain environment West Vail Center146 West Vail Center FRAMEWORK 147 West Vail Center SCENARIO 1 148 West Vail Center SCENARIO 1 149 West Vail Center SCENARIO 1 150 West Vail Center SCENARIO 2 151 West Vail Center SCENARIO 2 152 West Vail Center SCENARIO 2 PHASING 153 West Vail Center SCENARIO 2 PHASING 154 West Vail Center SCENARIO 2 PHASING 155 West Vail Center SCENARIO 2 PHASING 156 West Vail Center SCENARIO 2 PHASING 157 West Vail Center SCENARIO 3 158 West Vail Center SCENARIO 3 159 West Vail Center SCENARIO 3 160 West Vail Center PROS AND CONS 1 – QUICK WINS 2 – PARCEL-BY -PARCEL 3 – MAIN STREET 161 Implementation •Led by property owners in partnership with Town •Market-rate housing •Create value to fund redevelopment and parking costs •Provide incentive to property owners •Town Partnership •Assist with paying for a portion of structured parking •Consider a special district and/or TIF •Replacement Parking Costs •Roughly $35.0-$40.0 million •500-600 spaces @ $65,000 per space in structured parking West Vail Center162 What could the mix of businesses in West Vail Center look like? West Vail Center Food/Market Coffee Shop & Bakery Pizzeria Bar/Restaurant Breakfast/Lunch/Brunch Restaurant Vintage Apparel / Thrift / Used Gear Kids Gifts/Toys Private Fitness/Gym Pilates/Yoga Studio Salon Barber Shop Optician Interior Design Physical Therapy Office: Professional, Non-Profit Office: Executive Suites/Co-Working Doctor/Medical 50% 14% 36%Retail/F&B Personal Services Office/Services 163 Zoning Recommendations: Updates to Commercial Core 3 West Vail Center 1 •Develop new parking schedule •Expand allowed housing types •Develop new mix of allowed, conditional, and prohibited uses •Adjust zoning standards to align with scenarios 164 New Zoning District: Community Mixed Use Scen. 2 Scen. 3 •Develop new mix of allowed, conditional, and prohibited uses •Increase max building heights •Develop new parking schedule West Vail Center •Increase max site coverage •Expand allowed housing types •Reduce minimum setback requirements •Restrict inactive uses to upper floors •Revise landscaping requirements to align with scenarios 165 Funding and Financing Tool Scenario 1 Annual Revenue Scenario 2 Financing Capacity Scenario 3 Financing Capacity Business Improvement District (BID) •$200,000- $300,000/yr. •5.000 mills, $0.50- $1.00/sqft •N/A •N/A Tax Increment Financing (TIF) •N/A •$10-13 million •$11-14 million Special District (30 mills residential 10 mills comm.) •N/A •$10 million •$13 million West Vail Center166 West Vail Center IMPLEMENTATION COMPARISON 167 AGENDA ITEM NO. 2.4 Item Cover Page DATE:February 20, 2024 TIME:15 min. SUBMITTED BY:Carlie Smith, Finance ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:Year End Investment Report SUGGESTED ACTION:Listen to presentation. PRESENTER(S):Carlie Smith, Director of Finance VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 240220 2023 YE Investments.pdf 231231 Investment Report.pdf 168 2023 INVESTMENT REPORT Town Council | February 20, 2024 16 9 1. Safety 2. Liquidity 3. Yield Town Council |   Finance   |   2/20/2024 POLICY OBJECTIVES | Investment Policy 17 0 Town Council |   Finance   |   2/20/2024 2023 INVESTMENT RESULTS | Yield During 2023, the Fed approved four 0.25% interest rate increases after six increases in 2022. 3 Mos. 6 Mos. 1 Yr. 2  Yr. 5  Yr. Dec 2023 5.40% 5.26% 4.79% 4.23% 3.84% Dec 2022 4.42% 4.76% 4.73% 4.22% 3.99% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 3 Month 6 Month 1 Yr. 2 Yr. 5 Yr. Treasury Yields Dec‐24 Dec‐242 17 1 Town Council |   Finance   |   2/20/2024 2023 INVESTMENT RESULTS | Comparison to Treasury 1 year Treasury yield continued to rise in 2023 but decreased in Q4 in anticipation of an end to rate hikes The Town’s average yield increased 98 basis points during 2023. • Early withdrawal of older low yielding CDs • Invested in higher- yielding short-term CDs • Operating account yield increased from 2% to 4.5%. Q1 Q2 Q3 Q4 1 Yr Treasury  4.63% 5.40% 5.46% 4.79% Town of  Vail  3.50% 4.23% 4.36% 4.48% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q1 Q2 Q3 Q4 Yield Comparison 1 Yr. Treasury Town of Vail 17 2 Town Council |   Finance   |   2/20/2024 2023 INVESTMENT RESULTS | Investment Mix Colorado  Pool, 54% CD's, 6% Gov't  Securitires,  23% Cash, 17% December 31, 2022 $149.9M Colorado  Pool, 47% CD's, 13% Gov't  Securitires,  23% Cash, 17% December 31, 2023 $152.9M 17 3 Town Council |   Finance   |   2/20/2024 2023 INVESTMENT RESULTS | Maturity 82.80% 6.50% 5.50% 5.20% December 31,2023 < 1 Yr 1‐ 2 Yrs 2‐5 Yrs > 5 Yrs 73.05% 7.31% 13.95% 5.69% December 31,2022 < 1 Yr 1‐ 2 Yrs 2‐5 Yrs > 5 Yrs 17 4 Town Council |   Finance   |   2/20/2024 2023 INVESTMENT RESULTS | VLMD Investment Mix Colorado  Pool, 68% Cash, 32% December 31, 2023 $3.1M 17 5 Town Council |   Finance   |   2/20/2024 2024 INVESTMENT STRATEGY 0 20 40 60 80 100 120 140 160 180 Investment Mix < 1 Yr 1‐2 Year 2‐5 Year > 5 Year Projected Cash  Reserves Utilized 2024‐ 2025 Of the total $152.9M  cash and investment  mix, approximately  $100.2M is needed to  cash fund projects  over the next two  years. An additional  $28.0M is restricted by  fund type 17 6 Stick to our investment policy objectives: safety, liquidity and yield Continue to manage investment mix Make strategic decisions for use of cash for capital projects as appropriate Town Council |   Finance   |   2/20/2024 2024 INVESTMENT STRATEGY 17 7 TO: Russell Forrest Council Members FROM: Carlie Smith DATE: 4th Qtr 2023 RE: Investment Report Enclosed is the investment report with balances as of December 31, 2023 The estimated average yield for the pooled cash fund is 4.5%. As of 12/31/2023 the Treasury yield curves for 3 months, 6 months, and 1 year are 5.40%, 5.26%, and 4.79% respectively. Our investment mix follows the policy objectives of safety, liquidity, and yield in that order. Please call me if you have any questions. TOWN OF VAIL MEMORANDUM Following aggressive changes in the federal funds rates throughout 2022, there were four more 25 basis point rate increases during 2023 between February and May, bringing the total federal funds rate to a target range of 5.00%- 5.25%. Treasury yields dipped slightly in the fourth quarter with inflation data showing progress towards bringing prices back to the Federal Reserve's target rate of 2%. The Federal Reserve's policy shifted to a more moderate stance and markets began to reflect an optimistic outlook of possible future decreases in the Federal Reserve rates. The Town made no changes to it's investment mix during the 4th quarter and is purposely keeping a higher cash balance due to upcoming large expenditures. Gov't Securities $35.9 24% CD's $20.1 13%Colorado Investment Pool $71.0 46% Cash $25.9 17% 2023 4th Qtr. Investment Mix $152.9M 178 2023 Balances Percentage Percentage Cash of Total Allowed Commercial Banks $24,243,031 15.85% 50% Money Market Funds $1,689,792 1.11% 100% Total Cash $25,932,822 16.96% U.S. Government Securities Government Agency Securities -First Western $9,984,111 6.53% FNMA'S, GNMA'S, FHLMC'S & SBA'S - Dana $25,889,940 16.93% 100% Total Government Securities $35,874,051 23.46% Certificates of Deposit $20,091,518 13.14% Colorado Investment Pools $71,015,161 46.44%100% Total Portfolio $152,913,552 100.0% Maturing Within 12 Months 126,623,847 82.81% Maturing Within 24 Months 9,913,479 6.48% Maturing After 24 Months 16,376,226 10.71% 152,913,552 100.0% 2-5 Yrs 8,373,427 5.48% over 5 8,002,799 5.23% 16,376,226 Town of Vail, Colorado Investment Report Summary of Accounts and Investments As of 12/31/2023 179 Institution Average Balances Type of Accounts Return 12/31/23 "CASH" ACCOUNTS Commercial Bank Accounts: First Bank of Vail - Operating Accounts 4.500% $24,243,031 Money Market Accounts: Schwab Institutional Money Market Fund - Dana Investments 5.090% $1,309,070 Piper Sandler Money Market Fund 0.0499 12,549.11 First Western Fidelity IMM Gov Class 5.000% $368,173 Total Money Market Funds $1,689,792 Total "Cash" Accounts $25,932,822 GOVERNMENT SECURITIES FNMA'S, FHLMC'S & NGO'S -First Western 3.72% 9,984,111$ FNMA'S, GNMA'S, FHLMC'S & SBA'S - Dana 2.70% 25,889,940$ 35,874,051$ Total Government Securities 35,874,051$ 1st Bank, Vail Colorado (#0571) Matures March 11, 2024 4.860% 10,396,753 1st Bank, Vail Colorado (#0563) Matures March 8, 2024 4.860% 1,200,374 1st Bank, Vail Colorado (#0555) Matures March 8, 2024 4.860% 1,648,971 1st Bank, Vail Colorado (#0547) Matures March 8, 2024 4.860% 1,177,438 1st Bank, Vail Colorado (#0539) Matures March 8, 2024 4.860% 1,175,714 1st Bank, Vail Colorado (#0520) Matures March 8, 2024 4.860% 1,177,172 1st Bank, Vail Colorado (#0519) Matures March 8, 2024 4.860% 1,224,524 Piper Sandler 560390BW5 Matures August ,17 2027 4.490% 197,824 Piper Sandler 32022RVJ3 Matures January 30, 2026 4.750% 194,873 Piper Sandler 724468AH6 Matures July 31, 2026 4.760% 199,420 Piper Sandler 88423MAA3 Matures July 31, 2026 4.760% 206,487 Piper Sandler 062119CC4 Matures July 28, 2027 4.670% 199,094 Piper Sandler 89214PEC9 Matures November 15, 2028 5.670% 153,696 Piper Sandler 173576AJ8 Matures October 25, 2024 4.450% 147,127 Piper Sandler 40449HAD9 Matures October 27, 2025 4.480% 146,949 Piper Sandler 39573LDW5 Matures Oct 28,2025 4.750% 244,635 Piper Sandler 917352AD8 Matures Oct 28, 2025 4.710% 249,383 Piper Sandler 33715LFM7 Matures December 30, 2025 5.110% 151,085 20,091,518 Total Certificates of Deposit 20,091,518$ LOCAL GOVERNMENT INVESTMENT POOLS Colotrust General Fund Interest 5.231% $71,015,161 Total Local Government Investment Pools Accounts $71,015,161 Total All Accounts $152,913,552 As of 12/31/2023 Performance Summary 180 AGENDA ITEM NO. 2.5 Item Cover Page DATE:February 20, 2024 TIME:20 min. SUBMITTED BY:Jeremy Gross, Economic Development ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:2024 CSE 2nd Cycle Special Event Sponsorship Allocations SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Jeremy Gross, Special Event Coordinator VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Council Memo - 2024 2nd Cycle Special Event Sponsorship Allocations - 02-20-2024.pdf 181 To: Mayor and Town Council From: Jeremy Gross, Special Events Coordinator Economic Development Department Date: 02/20/2024 Subject: 2024 2nd Cycle Special Event Sponsorship Allocations I. BACKGROUND In January 2024, the Economic Development Department published an RFP for the second cycle of 2024 special event sponsorship for all Town funded events. The first cycle occurred in October/November of 2023, where 22 events were reviewed and sponsored. The first cycle included most of the events that occur in the first half of the year, and early summer and most of our Signature events. $1,093,000 was allocated in the first cycle, leaving approximately $702,960 to be allocated in the second cycle. The key objective of the event sponsorship program in 2024 will be to add users to the Discover Vail database, increase brand awareness to event attendees, collect and analyze data to support the event strategy in Vail. The town works with all event producers to ensure that the town is receiving agreed upon sponsorship benefits in line with the sponsorship amount. Budget The Town received 20 proposals in response to the second RFP for 2024 event sponsorship: • 1 Signature Event • 10 Visitor Draw Events • 7 Recreation/Tournament Events • 2 Education and Enrichment Events. The total budget available for all 2024 event sponsorship is $1,795,960. The total amount allocated in the first cycle was $1,093,000. The total dollar amount requested in the second cycle was $731,330. The total dollar amount allocated is $365,300. 182 Town of Vail Page 2 The town has also budgeted $861,000 for town-produced/RFP driven events including Vail America Days, Revely Vail and Vail Holidays, Vail Après Spring Series, 10th Mountain parades and Locals and Employee Celebrations and concerts. Review Process The Committee on Special Events viewed the sponsorship presentations from 20 event producers and made sponsorship funding recommendations at 2 meetings in February. The Event Funding Committee, comprised of representatives of the CSE, finance, Town managers office, and economic development departments, subsequently reviewed the proposals and recommended sponsorship amounts, resulting in the final recommendations included here. Each event was reviewed using the sponsorship application that was updated in 2022, the tangible valuation matrix, and the updated scoring criteria. Town Council is asked to review the funding recommendations below. Town Council can call up any of the funding allocations they would like to discuss by March 19, 2024 Town Council meeting. Sponsorship Allocations The following allocations were made by the Committee on Special Events and were finalized by the Event Funding Committee. The call up period begins on February 20, and will expire at the March 19, 2024 Town Council Meeting. The full sponsorship proposals and supporting documents can be reviewed in the CSE meeting packet found here - https://www.vail.gov/agendas. This section intentionally left blank. 183 Signature Highlights: • The Vail Jazz Organization is not producing their full summer of concerts as they have in the past due to the restructuring of the organization at the end of 2023. They are planning the continuation of the Vail Jazz Labor Day party at a new venue for 2024. Visitor Draw Highlights: • Handmade in Colorado Expo, which was a new event in 2023, was approved for a variable sponsorship amount. If the event occurs in Vail Village over 2 days, they will receive $3,000. If they are able to move the event to Lionshead and hold it over 3 days, they will receive the full $6,000. Signature Event Start Date Event End Date 2023 Funding $ Request CSE Recommended Funding EFC Final Allocation The Vail Jazz Party 24-Aug 2-Sep 90,000$ 45,000$ 35,000$ 35,000$ Subtotal Signature 90,000$ 45,000$ 35,000$ Visitor Draw - CSE Event Start Date Event End Date 2023 Funding $ Request CSE Recommended Funding Handmade in Colorado Expo 4-Oct 5-Oct 5,000$ 6,000$ 6,000$ 6,000$ Freefall Bluegrass Festival 11-Oct 13-Oct 65,000$ 80,000$ 65,000$ 65,000$ Vail's Ice Spectacular 22-Dec 23-Dec 30,000$ 35,000$ 30,000$ 30,000$ Vail Oktoberfest 2024 6-Sep 15-Sep -$ 75,000$ -$ Vail Kris Kringle Market 12-Dec 15-Dec 30,000$ 30,000$ 25,000$ 25,000$ Vail Wine Classic 8-Aug 10-Aug 40,000$ 50,000$ 35,000$ 35,000$ Vail Film Festival 5-Dec 8-Dec 75,000$ 75,000$ 10,000$ 10,000$ Arrabelle and the Town of Vail Presents: Concerts under the Tent in Lio 13-Jun 19-Sep 69,600$ 44,000$ 44,800$ Legacy Fighting Alliance 16-Oct 18-Oct 17,500$ 30,000$ 18,000$ 18,000$ Subtotal Visitor Draw 262,500$ 500,600$ 233,000$ 233,800$ 184 Town of Vail Page 4 • The Freefall Bluegrass Festival was very well received in its first year. The sponsorship request increased by $15,000 but is being funded flat with 2023 at $65,000 based on the expected sponsorship benefits the town will receive. • Vail Film Festival returned to the village with its first in person event since COVID in 2023. The event continued with their December dates, a change from last in person event in 2019, which aligned better with the Town’s needs but the overall visitation from the event and sponsorship benefits received did not justify the full sponsorship request. The Film Festival has lower sponsorship levels available that align better with the Towns goals. • The Arrabelle Concerts under the Tent is a new event produced by the team at the Arrabelle. They have been working with neighboring merchants to activate the tent on the ice rink throughout the summer, in an attempt to keep the energy from Vail Jazz alive. The plan is still in the works but will include a regular cadence of weekly music to provide an attractive environment for guests across Vail to linger in Lionshead. Recreation Highlights: • Kick it 3v3 has new ownership that requested a significant increase in sponsorship year over year with the goal of adding concerts and a festival atmosphere to the tournament. The town is not confident in the plan for the increased event scope this year and funded the event at a similar level to 2023. • Vail to Minturn 26k is a new event proposed by the Vail Rec District. The sub-ultra endurance category is a growing segment of enduring racing that VRD is excited to bring to the region. The event happens at a great time of year with lower occupancy. Recreation Event Start Date Event End Date 2023 Funding $ Request CSE Recommended Funding Cindy Eskwith Memorial Vail Cup Soccer Tournament 5-Oct 6-Oct $17,000 25,000$ 20,000$ 20,000$ The 53rd Annual Fred Ammer Vail Invitational 19-Jul 21-Jul $10,000 15,000$ 12,000$ 12,000$ Kick It Vail Cup 2-Aug 4-Aug $7,500 80,000$ 10,000$ 10,000$ Vail Gymnastics Classic 1-Sep 19-Oct $9,000 12,000$ 10,000$ 10,000$ 2024 45th Annual Vail Sportsmanship Tournament 18-Oct 17-Nov $12,500 12,500$ 12,500$ 12,500$ Vail to Minturn 26K*27-Sep 28-Sep $0 10,000$ 10,000$ 10,000$ SHIFRUNS 26-Mar 26-Mar $0 10,000$ 4,000$ 4,000$ Subtotal Recreation 56,000$ 164,500$ 78,500$ 78,500$ 185 Town of Vail Page 5 • SHIFRUNS, also know as Runs for ALS is a pair of events that raise money for ALS research. The main event is the ski challenge that occurs on Vail Mountain in March. The group also produces the Crawl for ALS which is a pub crawl through Vail Village on opening weekend of the ski season. Education and Enrichment Highlights: • From Ashes of Dinosaurs is a keynote speaker event associated with the Betty Ford Alpine Gardens 2024 exhibit. The sponsorship request was to offset rental costs for Grand View. The recommendation is to This section intentionally left blank. E&E Event Start Date Event End Date 2023 Funding $ Request CSE Recommended Funding Ethical Leadership Forum 17-Oct 18-Oct 20000 $20,000 18,000$ 18,000$ "From the Ashes of Dinosaurs" Keynote Speaker Event 14-Jun 14-Jun 0 $1,230 1,230$ -$ Subtotal Recreation 91,040$ 21,230$ 19,230$ 18,000$ 186 Other Events Notable events that are not on the list of sponsored events include Vail America Days, Revely Vail, Vail Social, the early season and end of season employee parties, and Vail Oktoberfest. With the exception of Vail Oktoberfest, the rest of the events are town produced. Vail America Days: The annual Vail America Days Parade will be returning this 4th of July. In 2024 the Town is planning to take more of a leadership role in the parade production, overseeing the parade route and operations, while still receiving planning and coordination support from Laurie Asmussen. The event plan for the America Days parade is very similar to 2023. The goal for the parade is to engage more local groups that will build engaging floats, and to continue securing bands and marching groups to bring music and performances to the parade. The proposed theme for the parade is “Let the Games Begin” highlighting the athletic nature of our community and the athletes around the world competing in the 2024 Summer Olympic Games. Vail Oktoberfest: After producing the event in 2022 and 2023, Team Player Productions has notified the Town that they are unable to move forward with producing Vail Oktoberfest due to staffing and scheduling challenges. The Town published an RFP to find a new producer for Vail Oktoberfest. One response was received but the proposal included a very large increase in the sponsorship amount due to the unknown aspects of taking over an event of this scale, and up front costs of taking on the event. The Town spoke with the event producer about a revenue share model to offset the large financial request but after further review, staff decided to solicit more responses, looking for a more traditional event proposal. The events budgets have money earmarked for the event, assuming that a new event producer can be retained. An update will be provided to the council by March 19, 2024. II. ACTION REQUESTED Town Council is asked to review the funding recommendations presented and provide feedback. Town Council can call up any of the funding allocations they would like to discuss by March 19, 2024 Town Council meeting. 187 AGENDA ITEM NO. 3.1 Item Cover Page DATE:February 20, 2024 SUBMITTED BY:Jamie Leaman-Miller, Community Development ITEM TYPE:DRB/PEC Update AGENDA SECTION:DRB/PEC (5 min.) SUBJECT:DRB/PEC Update SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: DRB Results 2-7-24.pdf PEC Results 2-12-24.pdf 188 Present:Kathryn Middleton Rys Olsen Herbert Roth Kit Austin Erin Iba 1.Virtual Meeting Link Register to attend Design Review Board Meetings. Once registered, you will receive a confirmation email containing information about joining this webinar. 2.Call to Order 3.Main Agenda Final review of an exterior alteration (store front) Address/ Legal Description: 141 East Meadow Drive Retail Condo/Lot P & Tract C, Block 5D, Vail Village Filing 1 Planner: Jonathan Spence Applicant Name: Moncler, represented by Suman Architects 3.1 DRB24-0021 - Solaris Retail Conditions: 1. All signage shall require a separate DRB application. Illuminated signage internal to the store shall be a minimum of 3’ from any exterior window. 2. The applicant shall provide staff with an example of the proposed material color demonstrating a distinction with the existing balcony box. Final review of an addition (single family home) Address/ Legal Description: 1785 Sunburst Drive/Area A & B, Sunburst at Vail Planner: Jonathan Spence Applicant Name: 1785 Sunburst Drive, LLC, represented by 159 Design 3.2 DRB24-0014 - 1785 Sunburst Drive, LLC Condition: The applicant shall provide staff with a detail demonstrating a 6" offset for the materials change between the wood siding and the metal siding on the front elevation. Design Review Board Minutes Wednesday, February 7, 2024 2:00 PM Vail Town Council Chambers 240124 Existing retail photos.pdf DRB24-0021 Moncler.pdf Moncler DRB COA.pdf Rys Olsen made a motion to Approve with conditions and the findings that the application meets 14-10-2 &14-10-4; Kathryn Middleton seconded the motion Passed (5 - 0). DRB24-0014 description and materials.pdf DRB24-0014 plan set.pdf 1 Design Review Board Meeting Minutes of February 7, 2024 189 Final review of a change to approved plans (landscape) Address/ Legal Description: 1281 North Frontage Road West/Lot 1, Timber Ridge Subdivision Planner: Greg Roy Applicant Name: Town of Vail, represented by Triumph Development 3.3 DRB23-0281.002 - Timber Ridge II Conceptual review of a pump building (utilities) Address/ Legal Description: 550 Forest Road/Tract A, Vail Village Filing 6 Planner: Greg Roy Applicant Name: Vail Resorts, represented by SGM 3.4 DRB24-0013 - Vail Resorts Pump Building Conceptual only. No action taken. Conceptual review of a new multiple family residential development Address/ Legal Description: North Frontage Road West/Tract A, Middle Creek Subdivision Planner: Greg Roy Applicant Name: Town of Vail, represented by George Ruther 3.5 DRB24-0004 - West Middle Creek Conceptual only. No action taken. (Austin recused) 4.Staff Approvals Final review of a change to approved plans (windows/screen) Address/ Legal Description: 1488 Matterhorn Circle/Vail Park Meadows 4.1 DRB19-0688.002 - Alura Residences Planner: Jonathan Spence Applicant Name: Alura Residences, represented by Pierce Austin Architects Final review of a change to approved plans (fence) Address/ Legal Description: 225 Forest Road/Lot 25, Block 7, Vail Village Filing 1 4.2 DRB22-0106.002 - Hicks Residence Planner: Greg Roy Applicant Name: Ed & Gloria Hicks, represented by Alpine Building & Development 4.3 DRB23-0447 - Beaver Dam Road LLC Rys Olsen made a motion to Approve with a condition and the findings that the application meets 14-10- 4 & 14-10-5; Herbert Roth seconded the motion Passed (5 - 0). DRB23-0281.002 Landscaping Plan Changes.pdf DRB23-0281 Landscaping Plan Approved.pdf Rys Olsen made a motion to Table to a date uncertain; Kathryn Middleton seconded the motion Passed (5 - 0). DRB24-0013 Plans.pdf DRB24-0004 Conceptual Plans 2-7-24.pdf 2 Design Review Board Meeting Minutes of February 7, 2024 190 Final review of an exterior alteration (hot tub/waterproofing) Address/ Legal Description: 374 Beaver Dam Road/Lot 8, Block 2, Vail Village Filing 3 Planner: Heather Knight Applicant Name: Beaver Dam Road, represented by Shaeffer Hyde Construction Final review of an exterior alteration (roof/fireplace) Address/ Legal Description: 1770 Alpine Drive/Lot 9, Vail Village West Filing 1 4.4 DRB23-0452 - 1770 Alpine Drive LLC Planner: Greg Roy Applicant Name: 1770 Alpine Drive, represented by 2139 Vail Final review of an exterior alteration (windows/door) Address/ Legal Description: 434 Gore Creek Drive E1B & E2B/Lot B, Block 3, Vail Village Filing 5 4.5 DRB24-0001 - Purchase Residence Planner: Heather Knight Applicant Name: John & Lara Purchase, represented by LKSM Design Final review of an exterior alteration (balconies/stairs) Address/ Legal Description: 4590 Vail Racquet Club Drive/Vail Racquet Club Condominiums 4.6 DRB24-0003 - Vail Racquet Club Planner: Jamie Leaman-Miller Applicant Name: Vail Racquet Club, represented by VMDA Final review of an exterior alteration (door) Address/ Legal Description: 1179 Sandstone Drive/Lot 3, Block 1, Lion's Ridge Subdivision Filing 4 4.7 DRB24-0007 - Gartner/Weinstock Residence Planner: Heather Knight Applicant Name: David Gartner & Kristi Weinstock, represented by Renewal By Andersen Final review of a tree removal Address/ Legal Description: 781 Potato Patch Drive B/Lot 21, Block 1, Vail Potato Patch Filing 1 4.8 DRB24-0010 - Johnson Residence Planner: Jonathan Spence Applicant Name: James & Shannon Johnson, represented by Vail Valley Tree Service Final review of a tree removal Address/ Legal Description: 740 Sandy Lane A/Lot 4, Vail Potato Patch Filing 2 4.9 DRB24-0011 - Hart Residence Planner: Jonathan Spence Applicant Name: Cynthia M. Hart, represented by Vail Valley Tree Service Final review of an exterior alteration (windows) Address/ Legal Description: 385 Forest Road/Lot 2, Block 2, Vail Village Filing 3 4.10 DRB24-0019 - Boyd Residence Planner: Heather Knight Applicant Name: Thomas Boyd, represented by Renewal By Andersen 3 Design Review Board Meeting Minutes of February 7, 2024 191 Final review of an exterior alteration (microwave dishes) Address/ Legal Description: 165 North Frontage Road West/Lot 2, Middle Creek Subdivision 4.11 DRB24-0020 - US West Communications Planner: Jamie Leaman-Miller Applicant Name: US West Communications, represented by Verizon Wireless Final review of an exterior alteration (windows) Address/ Legal Description: 4605 Meadow Drive 1/Vail Racquet Club Condominiums 4.12 DRB24-0015 - Vail Racquet Club Condos Planner: Jonathan Spence Applicant Name: Vail Racquet Club Condos, represented by VMDA Final review of an exterior alteration (windows/doors) Address/ Legal Description: 1330 Sandstone Drive 2/Lot G4, Lion's Ridge Subdivision Filing 2 4.13 DRB24-0006 - Mackenzie Residence Planner: Heather Knight Applicant Name: George Mackenzie, represented by Resolution Design Final review of an exterior alteration (windows/door) Address/ Legal Description: 1063 Vail View Drive 24/Lot A5, Block 5, Lion's Ridge Subdivision Filing 1 4.14 DRB24-0018 - Moore Residence Planner: Jamie Leaman-Miller Applicant Name: Michael G. & Yoshimi S. Moore, represented by Renewal By Andersen Final Review of a Change to Approved Plans (Pool) Address/ Legal Description: 508 E Lionshead Circle 4.15 DRB23-0104.001 - Vantage Point Condos 2023 (Pool) Planner: Jonathan Spence Applicant Name: Vantage Point HOA represented by Reed Kildow (Pierce Austin Architects) 5.Staff Denials 6.Adjournment (Austin not present for vote) Kathryn Middleton made a motion to Adjourn ; Herbert Roth seconded the motion Passed (4 - 0). 4 Design Review Board Meeting Minutes of February 7, 2024 192 Present:Scott P McBride John Rediker Henry Pratt Brad Hagedorn Bill Jensen Robyn Smith Absent:Bobby Lipnick 1.Virtual Link Register to attend the Planning and Environmental Commission meeting. Once registered, you will receive a confirmation email containing information about joining this webinar. 2.Call to Order 3.Worksession 3.1 Coldstream Condominium Work Session (Pratt recused) Planner Roy gives an introduction. Rediker and Roy discuss the property boundaries and neighboring lots. They discuss they entitlements on the lot to the south. Sean Hanagan & Greg Finch are representing the applicant. Hanagan gives a presentation on the history of the property and the idea for the new project. Hanagan and Commission discuss site planning. They discuss height considerations and the landscaping plan. Hanagan walks through zoning and development standards in SDD #4. The project is requesting small variations to setbacks, there are two projections extending around 4’ into the setbacks, as well as a below grade garage. There is discussion on the process for an SDD amendment. Further discussion regarding the entryway on the east of the property, parking, and the proposed EHU. There is talk of short-term rentals on property, Commission encourages adding a second EHU on the property as was proposed in 2011. Rediker asks for public comment. There is none. Finch speaks to some of the difficulties with adding another EHU on site. Another unit offsite is a possibility. 4.Main Agenda 4.1 A request for a review of a Minor Exterior Alteration, pursuant to Section 12-7B-7 Exterior Planning and Environmental Commission Minutes Monday, February 12, 2024 1:00 PM Vail Town Council Chambers Work session Memo 2-12-24.pdf Coldstream Packet.pdf 1 Planning and Environmental Commission Meeting Minutes of February 12, 2024 193 Planner: Greg Roy Applicant Name: CTRE15 LLC, represented by Pierce Austin Architects Alterations or Modifications, Vail Town Code, to allow for the addition of an elevator, located at 304 Bridge Street, Lot E-H, Block 5A, Vail Village Filing 1, and setting forth details in regard thereto. (PEC23-0028) (Pratt absent for remaining items) Planner Roy gives a presentation on the application. He walks through the criteria for review, staff is recommending approval. Jordan Kalasnik with Pierce Austin Architects is representing the applicant. He walks through the proposal. Smith asks about the interface of the roof form with the entrance awning. Kalasnik says that will be addressed in the design. Hagedorn asks why this is not adding site coverage; Roy says this is because the addition is over structural portions of the building. Jensen asks who the elevator services. Kalasnik says it is for two units on the second floor. Rediker asks for public comment. There is none. Public comment closed. Planner: Jonathan Spence Applicant Name: 1682 Matterhorn LLC, represented by Martin Manley Architects 4.2 A request for review of a Minor Subdivision, pursuant to Section 13-4, Minor Subdivisions, Vail Town Code, to adjust a lot line, located at 1682 Matterhorn Circle and 1673 Matterhorn Circle/Lots 20 and 21, Matterhorn Village Filing 1, and setting forth details in regard thereto. (PEC23-0031) Planner Spence talks about the process for minor and major subdivisions. Spence and Commissioners discuss the process for each type of subdivision. Spence gives a presentation on the proposal. Rediker opens Items 4.2 and 4.4. Spence describes the major subdivision request. Hagedorn asks about a lot still being under the 15,000 square foot minimum. Spence says the lot is PEC23-0028 - Red Lion Staff Memo.pdf Attachment A. PEC23-0028 Vicinity Map.pdf Attachment B. Applicant's Narrative.pdf Attachment C. PEC23-0028 Project Plan Set.pdf Robyn Smith made a motion to Approve with the conditions and findings on page 7 of the staff memo; Brad Hagedorn seconded the motion Passed (5 - 0). PEC23-0031 Staff Memo Minor Subdivision.pdf Attachment A. Project Narrative.pdf Attachment B. Project Lot Layout Overview.pdf Attachment C. Existing Conditions.pdf Attachment D. Proposed Plat Lot 20-21.pdf 2 Planning and Environmental Commission Meeting Minutes of February 12, 2024 194 significantly larger than before, we are decreasing the amount of non-conformity. Smith asks about the relevance of the West Vail Master Plan. Spence says staff is not making a judgment call, they’re processing these applications as received. Smith clarifies the properties would be single-family if redeveloped as existing. Jeff Manley with Martin Manley Architects is representing the applicants. The lots today are non- conforming with the Primary/Secondary zoning. The idea is to take what is non-conforming and make it conforming, with better orientation and access for the lots. Smith references 13-3-4, is the applicant considering something other than duplexes? Manley says the lots become smaller once the setbacks are applied. Hagedorn asks about approving a subdivision that goes through the existing home. Spence says there is a plan not to record any subdivision plats that exacerbate existing non- conformities. Manley says they would not record until these structures are gone. McBride clarifies the scope of Item 4.2 Rediker asks for public comment. There is none. Public comment closed. Jensen says given the history of these lots before Vail, as it’s been a practice to adjust lot lines. The presentation makes sense, to maximize the density possibility for the lots. Rediker references 13-3-3 and utility considerations. Manley says they have been talking with Eagle River Water & Sanitation and Holy Cross as to their requirements. Hagedorn says there is some nuance with no net loss. At the same time these are not formal deed restricted properties, and the quality is listed as poor on the assessor’s website. It’s an improvement within the existing zoning. Rediker says Item 4.4 meets the criteria in 13-3-3 and agrees with the staff analysis. For Item 4.2, he agrees with the staff review that the criteria is met. Smith says she understand the move to achieve the redevelopment according to the current zoning, this development as proposed would produce great duplexes. This area has been an important part of the Town, the applicants shouldn’t be faulted for wanting to redevelop this. However, citing 13-3-4, the items fail criteria 1 because the West Vail Master plan is an element of the comprehensive plan. The proposal is not consistent with the adopted goals as defined in that master plan; Housing goals #1 and 4, and Zoning Recommendation #2 and #5. It fails criteria 7, citing the subdivision provides for an orderly and viable community and serves the best interest of the community. The PEC isn’t bound by precedent, there is a reasonable expectation the neighbors will be treated the same for similar requests. Smith references the conversations regarding West Vail Multifamily 2, and concerns that the PEC wouldn’t have the criteria to deal with a subdivision that subverts this. There is a disconnect between the goals in the plan and the land use regulation, which should be addressed by the Council. 3 Planning and Environmental Commission Meeting Minutes of February 12, 2024 195 Hagedorn asks about the West Vail Master Plan. Roy talks about the history of that process. The process ended up as an overlay district that properties could opt in to, not a mandated rezoning but an overlay that could be elected by individual properties. Hagedorn says we need to encourage these goals through our zoning, but where this sits now it furthers the conformance of the existing zoning. Planner: Jonathan Spence Applicant Name: 1699 Geneva, represented by Martin Manley Architects 4.3 A request for review of a Minor Subdivision, pursuant to Section 13-4, Minor Subdivisions, Vail Town Code, to adjust a lot line and remove previously abandoned lot lines, located at 1699, 1705 and 1707 Geneva Drive/Lots 1, 2 and 3, Matterhorn Village Filing 1, and setting forth details in regard thereto. (PEC24-0002) Spence says this application stands alone; it is moving a lot line back to its original location. Manley says this application makes the lots more conforming. Rediker asks for public comment. There is none. Public comment closed. Planner: Jonathan Spence Applicant Name: 1692 Matterhorn, represented by Martin Manley Architects 4.4 A request for the review of a Major Subdivision, pursuant to Section 13-3, Major Subdivisions, Vail Town Code, for the reconfiguration of lots located at 1682 Matterhorn Circle and 1692, 1704, 1706, 1708 and 1710 Geneva Drive/Lots 18, 19, and Lot 21, Matterhorn Village Filing No. 1, and setting forth details in regard thereto. (PEC24-001) This Item heard concurrently with Item 4.2. John Rediker made a motion to Approve with the condition and findings on page 11 of the staff memo; Bill Jensen seconded the motion Passed (4 - 1). Voting For: Brad Hagedorn, Scott P McBride, Bill Jensen, John Rediker Voting Against: Robyn Smith PEC24-0002 Staff Memo Minor Subdivision.pdf Attachment A. Project Narrative.pdf Attachment B. Project Lot Layout Overview.pdf Attachment C. Existing Conditions.pdf Attachment D. Proposed Plat.pdf Scott P McBride made a motion to Approve with the condition and findings on page 11 of the staff memo; Bill Jensen seconded the motion Passed (4 - 1). Voting For: Bill Jensen, Brad Hagedorn, John Rediker, Scott P McBride Voting Against: Robyn Smith PEC24-0001 Staff Memo Major Subdivision.pdf Attachment A. Project Narrative.pdf Attachment B. Project Lot Layout Overview (Major).pdf Attachment C. Existing Conditions.pdf 4 Planning and Environmental Commission Meeting Minutes of February 12, 2024 196 5.Approval of Minutes 5.1 PEC Results 1-22-24 (Hagedorn abstains) 6.Information Update Roy talks about the upcoming term expirations. Hagedorn asks if there has been interest in people taking up the West Vail overlay. Roy says there was during the discussion but nothing since then. Hagedorn asks about West Middle Creek. Roy says they have had two conceptual reviews with the DRB. Smith asks about mobility plan language, that code language includes carshare, at some point are we going to figure out what it takes to approve a carshare. Roy says that is an option for each site, if they are proposing carshare they should show how that works. Smith says how do we know if we can approve a carshare that might not last a long time. Roy says it will depend on if the commission believes the mobility plan is sufficient. Smith says Avon has had some parking issues. Is there anything we can do to make sure that doesn’t happen to us? Roy talks parking requirements in the code. Smith brings up turf grass, we don’t really have a requirement to stop non-functional turf grass. Is the PEC interested in limiting the amount of that? Roy says typically it would be up to Town Council to initiate changes such as that. The Commission is unanimously in favor of recommending to Council a study on whether there is an appropriate way to reduce or limit turf grass and encourage lower water use. 7.Adjournment Scott P McBride made a motion to Approve with the findings on page 13 of the staff memo; Bill Jensen seconded the motion Passed (4 - 1). Voting For: Bill Jensen, Brad Hagedorn, John Rediker, Scott P McBride Voting Against: Robyn Smith PEC Results 1-22-24.pdf Robyn Smith made a motion to Approve ; Scott P McBride seconded the motion Passed (4 - 0). Brad Hagedorn made a motion to Adjourn ; Robyn Smith seconded the motion Passed (5 - 0). 5 Planning and Environmental Commission Meeting Minutes of February 12, 2024 197 AGENDA ITEM NO. 4.1 Item Cover Page DATE:February 20, 2024 SUBMITTED BY:Stephanie Bibbens, Public Works ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:January 8, 2024 AIPP Meeting Minutes SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: January 8, 2024 Minutes.pdf 198 Art in Public Places Board Meeting Minutes Monday, January 8, 2024 AIPP Board members present: Tracy Gordon, Susanne Graf, Kathy Langenwalter, Courtney St. John, Lindsea Stowe Others present: Molly Eppard - AIPP Coordinator 1. Call to Order. 2. No Citizen Participation. 3. Main Agenda 3.1. Approval of December 4, 2023 meeting minutes. December 4, 2023 - Minutes.pdf 3.2. Vail Winterfest 2024 update. • The installation is on time and going smoothly despite the frigid temps and low snow levels. • Social media impressions are high and other print media is also going well. • Opening reception is Tuesday, January 9th @ 4:30 – 5:30 pm. • Sponsorship is by Mountain Standard and Two Arrows for the opening along with swag giveaways. • New banners are now installed in both main Vail roundabouts. 3.3. Introduction and review work by environmental artist Nikki Pike (zoom) • The artist discusses process, materials, substructure, and construction for her sculptures. • Kathy asks her to review longevity and safety of her work. 3.4. Summer 2024 public art murals. • Vail Valley Foundation (VVF) & GoPro Mountain Games 2024 commissioned mural: • The Board agrees to continue the 2023 plan going forward for the VVF to install a mural at the same site in the Vail Village Transportation Center (VV TRC) in conjunction with GoPro Mountain Games. • The Board requests: the VVF prep the wall with their own manpower/materials in advance, have the mural proposal presented and approved by the AIPP Board as the work is on TOV property, and include details about the artist and mural in the ad vitrine adjacent to the mural as previously discussed. Logos will not be acceptable in the artwork, but in the ad vitrine. • AIPP/TOV Colorado Mural Project: • Molly will engage with Colorado muralists to continue the program established by AIPP in 2019. • The Board agrees the P1 entrance at the main stairs at VV TRC is a prime location. The new Logan sculptures have created a great visual art setting and this entrance is an ideal location to include a mural. • Lindsea suggests the selected muralist be the summer artist in residence with additional community activations. 4. Coordinator Updates. • Molly has meetings with the Betty Ford Alpine Gardens and Bravo! for possible summer collaborations. • Update on Art Studio: the project is on pace with pre-construction meetings. Exploring possible geothermal capabilities, as an exploratory well was drilled at the site. • Molly will schedule an AIPP update Council presentation in the next two months. • Playground design at Sunbird Park is being copied by Earthscape Play in Canada. Cease and desist letter sent. https://collections.earthscapeplay.com/towers/forest-tower-trio 5. Adjournment. 199 AGENDA ITEM NO. 4.2 Item Cover Page DATE:February 20, 2024 SUBMITTED BY:Missy Johnson, Housing ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:January 19, 2024 VLHA Meeting Minutes SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 2024-01-19 VLHA Minutes.pdf 200 Vail Local Housing Authority Minutes Friday, January 19, 2024 4:00 PM Virtually via ZOOM PRESENT ABSENT Steve Lindstrom Craig Denton Kristin Williams James Wilkins Dan Godec STAFF George Ruther, Housing Director Martha Anderson, Senior Housing Coordinator 1. Call to Order 1. 1 Call to Order The meeting was called to order at 4:01 p.m. with a quorum present. 1.2 Zoom Meeting 2. Citizen Participation 2.1 Citizen Participation No comments. 3. Main Agenda 3.1 Prepare for Vail Home Partners Meeting on February 6 with the Vail Town Council This Authority meeting is in prep of the Joint Session with Town Council on Tuesday, February 6. Th Authority agreed to cancel the Authority meeting currently scheduled for February 13. Lindstrom spoke about the history of the creation of Vail Home Partners and the 10 Housing Policies which can be found at vail.gov/housing under the Housing Documents section. Conversation ensued around the possibility of future capabilities for the Vail Home Partners and variety of roles specific to the West Middle Creek Project. This body of Vail Home Partners is a commonly used name when referencing the two organizations working in tandem together, but it is not a legal entity. The Authority seeks to gather input from the Town Council on the housing Authority’s role in financing to be a better partner to the Council (grant funding, issuer of bonds and anything in between). 1. Lindstrom referenced a 2022 memo and previous discussion items: What is the Vail Town Council’s vision for the future of housing in Vail? What role does partnering in housing solutions down valley play and how is it best to address the unintended consequences? What does a down valley partnership look like? 2. From a housing perspective, what is going to be different 5 to 7 years from now? What progress has the Town made towards achieving the housing goal? How have the conditions changed? 201 3. There has been great progress towards the goal of 1,000 additional deed restrictions based on the 2027 Strategic Housing Plan. Where do we want this to go in the future, in town, out of town, for sale and for rent in determining the emphasis of dollars spent. 4. Additional Strategic Ideas from the Authority to consider in the final work session memo were discussed and a few documents may be used as a reference and/or to provide to new council members. • Martha will provide the Town of Vail Stewardship Plan to the Authority, which includes a housing element. • Consider using the 2019 Economic Value of Housing as an inclusion in the packet for Council and show the value, economic sense, and ROI to further community housing projects. 5. Outcomes that the Authority seeks: • What is the preferred role for the Authority in communications regionally with fellow public partners or future projects such as West Middle Creek? • Shall the Authority discuss future project locations in larger terms in preparation for the future? • Shall we have future conversations around re-allocation of funding or future acquisition planning once Timber Ridge II residences are sold? • Discussion around housing decision making, future Housing Policy Statements and where does the Council sit regarding future housing projects outside the Town limits? 4. Matters from the Chairman and Authority Members 4.1 Matters from the Chairman and Authority Members Tuesday, January 23 - Via Zoom based on agenda and Authority availability Thursday, February 1- Additional Authority Work Session via Zoom 8 a.m. Tuesday, February 6 - Joint session with Town Council Tuesday, February 13 - Authority meeting cancelled 5. Adjournment at 4:45 p.m. 5.1 Adjournment 5:00 PM (Estimate) MOTION: Williams SECOND: Godec PASSED: (3 - 0) 6. Future Agenda Items 6.1 Vail Housing 2027 Land Banking 7. Next Meeting Date January 23, 2024, Virtually Via Zoom 202 AGENDA ITEM NO. 4.3 Item Cover Page DATE:February 20, 2024 SUBMITTED BY:Missy Johnson, Housing ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:January 23, 2024 VLHA Meeting Minutes SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 2024-01-23 VLHA Minutes.pdf 203 Vail Local Housing Authority Minutes Tuesday, January 23, 2024 3 p.m. Virtually via ZOOM PRESENT ABSENT Steve Lindstrom Craig Denton Dan Godec James Wilkins Kristin Williams STAFF Martha Anderson, Senior Housing Coordinator Missy Johnson, Housing Coordinator 1. Call to Order 1.1 Call to Order The meeting was called to order at 3:02 p.m. with a full housing authority present on zoom. 1.2 Zoom Meeting 1 (Pre-Executive Session) 30 Min. 1.3 Zoom Meeting 2 (Post-Executive Session) 5 Min. 2. Citizen Participation 2.1 Citizen Participation No comments. 3. Approval of Minutes 3.1 VLHA December 12, 2023 Minutes Presenter(s): Missy Johnson, Housing Coordinator MOTION: Godec SECOND: Williams PASSED: (5 - 0) 4. Main Agenda 4.1 Leave of Absence Request Presenter(s): Missy Johnson, Housing Coordinator Johnson presented an official leave of absence request and referenced the Vail Commons Master Deed Restriction and the Town of Vail Employee Housing Guidelines. This owner has never done a leave of absence and they have been in Vail for more than 20 years and currently work in the Town of Vail. With full consensus from the Authority, the owners will need to provide a lease and all documentation to support an approved/qualified renter as stated in the Town of Vail Housing Guidelines in order for final approval and in no way can the lease amount exceed the monthly expenses for the cost of shall be equivalent to the monthly expenses for the cost of principal and interest payments, taxes, property insurance, condominium or homeowners assessments, utilities remaining in owner's name, plus an additional twenty dollars ($20) and a reasonable (refundable) security deposit. 204 5. Matters from the Chairman and Authority Members 5.1 Matters from the Chairman and Authority Members Presenter(s): Steve Lindstrom, VLHA Chairman Godec updated the group regarding a meeting that he and Lindstrom had with Katie Santambrogio of Social Impact Partners regarding a soon to come scope of work for proposed grant writing efforts. They will bring the information back to the Authority once available. Lindstrom updated the Authority regarding a quarterly Eagle County Advisory Housing Committee meeting that he attended. Williams requested to add Sponsorship of the 2024 Habitat for Humanity Carpenter’s Ball to a future Authority agenda. Motion to exit regular session and enter Executive Session at 3:21 p.m. MOTION: Williams SECOND: Godec PASSED: (5 - 0) 6. Executive Session 6.1 Executive Session per C.R.S. §24-6-402(4)(a)(e) - to discuss the purchase, acquisition, lease, transfer or sale of real, personal or other property interests and to determine positions relative to matters that may be subject to negotiations regarding: Vail InDEED application. Presenter(s): Martha Anderson, Senior Housing Coordinator 7. Any Action as a Result of Executive Session 7.1 Any Action as a Result of Executive Session The regular session reconvened at 3:49 p.m. with all Authority members present except for Williams. There was a motion to direct staff as discussed during Executive Session. MOTION: Godec SECOND: Denton PASSED: (4 - 0) 8. Adjournment 8.1 The meeting adjourned at 3:50 p.m. MOTION: Denton SECOND: Wilkins PASSED: (4 - 0) 9. Future Agenda Items 9.1 Vail Housing 2027 Land Banking Joint Work Session with Town Council 10. Next Meeting Dates 10.1 Thursday, February 1- Additional Authority Work Session via Zoom 8 a.m. Tuesday, February 6 - Joint session with Town Council 205 AGENDA ITEM NO. 4.4 Item Cover Page DATE:February 20, 2024 SUBMITTED BY:Stephanie Bibbens, Housing ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:EHU Compliance Update SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: EHU Compliance Status Update Memo 02062024.pdf 206 Memorandum To: Vail Town Council From: Martha Anderson, Senior Housing Coordinator Missy Johnson, Housing Coordinator Date: February 6, 2024 Subject: 2023 Deed-Restricted Employee Housing Compliance Status Report I. SUMMARY The Town of Vail Housing Department is charged with verifying compliance for 1,033 deed-restricted properties in the Town of Vail, annually. As a courtesy, Housing staff sent letters to deed-restricted property owners on November 30, 2023, and January 9, 2024, as well as email blasts on November 30, 2023 and January 10, 2024 reminding each of their obligation to provide documentation demonstrating compliance by no later than February 1, 2024, per the terms of the recorded deed-restrictions. As a result, 1,027 deed-restricted property owners, or 99.4%, submitted the required documentation by the February 1st deadline. This is an increase of 4% over the previous year’s compliance. Out of the 6 non-compliant properties, one is a repeat offender. On February 2, 2024, Housing staff mailed 6 letters for non-compliance to 6 deed- restricted property owners. Owners were granted a deadline of February 29, 2024 to pay the $250 late fee and submit compliance. If owners do not respond by the required deadline, a summons to appear in municipal court will be issued by the Police Department. II. NEXT STEPS Beginning March 1, 2024, the Housing staff, in collaboration with the Police Department, will prepare evidentiary files in anticipation of issuing summons for failure to comply with the deed restriction terms. Once a summons has been written, the issue of non - compliance will transition from a compliance matter to an enforcement matter. 207 AGENDA ITEM NO. 4.5 Item Cover Page DATE:February 20, 2024 SUBMITTED BY:Carlie Smith, Finance ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:2023 2nd Quarter Investment Report SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 2023 Q2 Investment Report.pdf 208 TO: Russell Forrest Carlie Smith Council Members FROM: Alex Jakubiec DATE: 2nd Qtr 2023 RE: Investment Report Enclosed is the investment report with balances as of June 30, 2023 The estimated average yield for the pooled cash fund is 4.3%. As of 6/30/2023 the Treasury yield curves for 3 months, 6 months, and 1 year are 5.43%, 5.47%, and 5.4% respectively. Our investment mix follows the policy objectives of safety, liquidity, and yield in that order. Please call me if you have any questions. TOWN OF VAIL MEMORANDUM Gov't Securities $35.4 20% CD's $19.6 11%Colorado Investment Pool $87.4 49% Cash $37.9 20% 2023 2nd Qtr Investment Mix $178.8M 209 2023 Balances Percentage Percentage Cash of Total Allowed Commercial Banks $35,292,499 19.74% 50% Money Market Funds $990,951 0.55% 100% Total Cash $36,283,449 20.29% U.S. Government Securities Government Agency Securities -First Western $9,920,900 5.55% FNMA'S, GNMA'S, FHLMC'S & SBA'S - Dana $25,499,427 14.26% 100% Total Government Securities $35,420,327 19.81% Certificates of Deposit $19,621,204 10.98% Colorado Investment Pools $87,439,542 48.91%100% Total Portfolio $178,764,524 100.0% Maturing Within 12 Months 150,445,398 84.16% Maturing Within 24 Months 7,693,967 4.30% Maturing After 24 Months 20,625,159 11.54% 178,764,524 100.0% 2-5 Yrs 13,219,504 7.39% over 5 7,405,654 4.14% 20,625,159 Town of Vail, Colorado Investment Report Summary of Accounts and Investments As of 6/30/2023 210 Institution Average Balances Type of Accounts Return 06/30/23 "CASH" ACCOUNTS Commercial Bank Accounts: First Bank of Vail - Operating Accounts 4.500% $35,292,499 Money Market Accounts: Schwab Institutional Money Market Fund - Dana Investments Interest and Balance 0.450% $914,470 First Western Fidelity IMM Gov Class 4.750% $71,079 Interest and Balance 4.740% $5,402 Total Money Market Funds $990,951 Total "Cash" Accounts $36,283,449 GOVERNMENT SECURITIES FNMA'S, FHLMC'S & NGO'S -First Western 1.85% 9,920,900$ FNMA'S, GNMA'S, FHLMC'S & SBA'S - Dana 2.09% 25,499,427$ 35,420,327$ Total Government Securities 35,420,327$ 1st Bank, Vail Colorado (#0571) Matures March 11, 2024 4.860% 10,152,094 1st Bank, Vail Colorado (#0563) Matures March 8, 2024 4.860% 1,172,126 1st Bank, Vail Colorado (#0555) Matures March 8, 2024 4.860% 1,610,167 1st Bank, Vail Colorado (#0547) Matures March 8, 2024 4.860% 1,149,730 1st Bank, Vail Colorado (#0539) Matures March 8, 2024 4.860% 1,148,047 1st Bank, Vail Colorado (#0520) Matures March 8, 2024 4.860% 1,149,471 1st Bank, Vail Colorado (#0519) Matures March 8, 2024 4.860% 1,195,708 Piper Jaffray 173576AJ8 Matures October 25, 2024 4.400% 146,002 Piper Jaffray 40449HAD9 Matures October 27, 2025 4.540% 144,907 Piper Jaffray 17312QQ36 Matures July 24, 2023 3.300% 149,802 Piper Jaffray 254673RVO Matures July 25, 2023 3.300% 99,863 Piper Jaffray 06426KAMO Matures July 31, 2023 3.200% 249,570 Piper Jaffray 29278TCG3 Matures July 31, 2023 3.200% 239,587 Piper Jaffray 947547NL5 Matures Oct 30, 2023 0.400% 127,901 Piper Jaffray 39573LDW5 Matures Oct 28,2025 4.810% 241,452 Piper Jaffray 917352AD8 Matures Oct 28, 2025 4.770% 246,108 Piper Jaffray 33715LFM7 Matures December 30, 2025 5.180% 149,090 Piper Jaffray 58404DCM1 Matures July 31, 2023 3.250% 249,580 19,621,204 Total Certificates of Deposit 19,621,204$ LOCAL GOVERNMENT INVESTMENT POOLS Colotrust General Fund Interest 4.924% $87,439,542 Total Local Government Investment Pools Accounts $87,439,542 Total All Accounts $178,764,523 Performance Summary 211 AGENDA ITEM NO. 4.6 Item Cover Page DATE:February 20, 2024 SUBMITTED BY:Carlie Smith, Finance ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:2023 3rd Quarter Investment Report SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 2023 Q3 Investment Report.pdf 212 TO: Russell Forrest Council Members FROM: Carlie Smith DATE: 3rd Qtr 2023 RE: Investment Report Enclosed is the investment report with balances as of September 30, 2023 The estimated average yield for the pooled cash fund is 4.4%. As of 9/30/2023 the Treasury yield curves for 3 months, 6 months, and 1 year are 5.55%, 5.53%, and 5.46% respectively. Our investment mix follows the policy objectives of safety, liquidity, and yield in that order. Please call me if you have any questions. TOWN OF VAIL MEMORANDUM Gov't Securities $35.5 22% CD's $19.8 12% Colorado Investment Pool $70.0 43% Cash $37.6 23% 2023 3rd Qtr Investment Mix $162.9 M 213 2023 Balances Percentage Percentage Cash of Total Allowed Commercial Banks $36,306,446 22.29% 50% Money Market Funds $1,269,988 0.78% 100% Total Cash $37,576,434 23.07% U.S. Government Securities Government Agency Securities -First Western $9,798,667 6.02% FNMA'S, GNMA'S, FHLMC'S & SBA'S - Dana $25,712,300 15.79% 100% Total Government Securities $35,510,967 21.81% Certificates of Deposit $19,824,141 12.17% Colorado Investment Pools $69,956,108 42.95%100% Total Portfolio $162,867,650 100.0% Maturing Within 12 Months 129,218,859 79.34% Maturing Within 24 Months 13,625,921 8.37% Maturing After 24 Months 20,022,870 12.29% 162,867,650 100.0% 2-5 Yrs 12,592,543 7.73% over 5 7,430,327 4.56% 20,022,870 Town of Vail, Colorado Investment Report Summary of Accounts and Investments As of 9/30/2023 214 Institution Average Balances Type of Accounts Return 09/30/23 "CASH" ACCOUNTS Commercial Bank Accounts: First Bank of Vail - Operating Accounts 4.500% $36,306,446 Money Market Accounts: Schwab Institutional Money Market Fund - Dana Investments Interest and Balance 0.450% $989,730 First Western Fidelity IMM Gov Class 5.000% $267,193 Interest and Balance 4.980% $13,066 Total Money Market Funds $1,269,988 Total "Cash" Accounts $37,576,434 GOVERNMENT SECURITIES FNMA'S, FHLMC'S & NGO'S -First Western 3.07% 9,798,667$ FNMA'S, GNMA'S, FHLMC'S & SBA'S - Dana 2.32% 25,712,300$ 35,510,967$ Total Government Securities 35,510,967$ 1st Bank, Vail Colorado (#0571) Matures March 11, 2024 4.860% 10,273,027 1st Bank, Vail Colorado (#0563) Matures March 8, 2024 4.860% 1,186,089 1st Bank, Vail Colorado (#0555) Matures March 8, 2024 4.860% 1,629,347 1st Bank, Vail Colorado (#0547) Matures March 8, 2024 4.860% 1,163,426 1st Bank, Vail Colorado (#0539) Matures March 8, 2024 4.860% 1,161,723 1st Bank, Vail Colorado (#0520) Matures March 8, 2024 4.860% 1,163,163 1st Bank, Vail Colorado (#0519) Matures March 8, 2024 4.860% 1,209,952 Piper Sandler 560390BW5 Matures August ,17 2027 4.580% 196,486 Piper Sandler 32022RVJ3 Matures January 30, 2026 4.830% 194,276 Piper Sandler 724468AH6 Matures July 31, 2026 4.830% 191,732 Piper Sandler 88423MAA3 Matures July 31, 2026 4.830% 203,351 Piper Sandler 062119CC4 Matures July 28, 2027 4.750% 195,678 Piper Sandler 173576AJ8 Matures October 25, 2024 4.450% 146,017 Piper Sandler 40449HAD9 Matures October 27, 2025 4.540% 144,796 Piper Sandler 947547NL5 Matures Oct 30, 2023 0.400% 129,446 Piper Sandler 39573LDW5 Matures Oct 28,2025 4.820% 241,085 Piper Sandler 917352AD8 Matures Oct 28, 2025 4.780% 245,760 Piper Sandler 33715LFM7 Matures December 30, 2025 5.190% 148,788 19,824,141 Total Certificates of Deposit 19,824,141$ LOCAL GOVERNMENT INVESTMENT POOLS Colotrust General Fund Interest 5.166% $69,956,108 Total Local Government Investment Pools Accounts $69,956,108 Total All Accounts $162,867,650 Performance Summary As of 9/30/2023 215 AGENDA ITEM NO. 5.1 Item Cover Page DATE:February 20, 2024 SUBMITTED BY:Stephanie Bibbens, Town Manager ITEM TYPE:Town Manager Report AGENDA SECTION:Matters from Mayor, Council, Town Manager and Committee Reports (20 min.) SUBJECT:Town Manager Report SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: TM Update 021624.docx 216 Town Managers Update February 20, 2024 1. Strategic Goals & Actions The dates for the strategic planning meeting are February 26 and 27th in the Grand View room. We anticipate starting at 8:30 a.m. on both days. 2. Legislative Update Staff has invited Senator Roberts and Representative Lukens to the March 5th Town Council meeting in the afternoon to provide a legislative update to the Town Council. Staff will prepare a memo that summarizes a variety of bills that may be of interest to the Town of Vail to discuss with the Senator and Representative. 3. Letter of Support for Town of Eagle grant request The Town of Eagle has requested a letter of support for their Grand Avenue Multimodal Reconstruction Project. The Town of Eagle provided a letter of support to the RTA and the RTA voted to sign the provided letter. There were concerns about the specific letter of support that was provided in that it strongly accentuated the value of this project for regional transit. In consultation with Barry Davis, staff prepared a more specific letter of support for this federal grant (RAISE) grant. Would Council like to authorize the Mayor to sign this letter of support? A summary of this project can be found at 2024 Grand Avenue Multi-modal Corridor.docx (live.com) 4. Building Code Adoption in Eagle County At the last Town Council meeting, the Council asked for a table that would compare building and electrical codes adopted by jurisdictions in Eagle County. The following is a table provided by Community Development. (ICC: International Code Council; NEC: National Electrical Code; IECC: International Energy Conservation Code). The Community Development Department will come before Council in June-July of this year with a request to adopt the 2023 ICC and NEC code cycles. 5. Other There may be other topics the Town Manager needs to share with the Town Council. Jurisdiction ICC Codes NEC Avon 2021 2020 Eagle 2021 2020 Eagle County 2015 2020 Gypsum 2021 2023 (2018 IECC) Minturn 2021 2023 Vail 2021 2020 217 Page 2 February 20, 2024 The Honorable Pete Buttigieg Secretary of Transportation U.S. Department of Transportation 1200 New Jersey Ave, SE Washington, DC 20590 Dear Secretary Buttigieg, Please accept this letter in support of the Town of Eagle's submission for an implementation grant under the FY 2024 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) discretionary grant program for the Grand Avenue Multimodal Reconstruction Project. The Town of Eagle is located just east of the Eagle County Regional Airport (EGE) and our guests must travel to and from the airport through the Town of Eagle on Grand Avenue, also known as U.S. Highway 6, to reach Vail. In addition, many of our employees must also travel this same corridor to support our tourism economy. The Grand Avenue Multimodal Reconstruction Project will improve safety, mobility and congestion by consolidating access points and adding travel lanes and roundabouts at major intersections on this one-mile-plus stretch of Grand Avenue in the Town of Eagle. Mobility and safety will also be enhanced by adding a bikeway and sidewalk on Grand Avenue along with enhancing the connections to the existing transit stops at 5th Street and Sylvan Lake Roads. In summary this project will encourage economic growth and redevelopment to revitalize Eagle’s economy, support our workforce commuters, and improve mobility between Interstate 70 and the Eagle County Airport. This project will have both a positive impact on the Town of Eagle and improve regional transportation for the valley. Again, we ask that you award the Town of Eagle a RAISE grant for the Grand Avenue Multimodal Reconstruction Project and advance this crucial infrastructure project which will benefit the Town of Eagle and all of Eagle County. Thank you for your consideration and hopefully, your support. Sincerely, Travis Coggin Mayor 218 Page 3 PRIORITY VAIL TOWN COUNCIL GOALS FOR 2023 CATEGORY GOALS NEXT STEPS WHO Housing The Town of Vail will acquire 1,000 additional resident housing deed restrictions by the year 2027 as compared to 2017. By October 1, 2023: 1.Complete the Residences at Main Vail. 2.Initiate the entitlement process for the Timber Ridge and West Middle Creek housing developments. 3.Acquire the East Vail CDOT parcel and initiate the design process. 4.Initiate the acquisition process for one additional parcel of land to create a significant regional housing development. 5.Amend the commercial linkage requirements and adopt residential linkage 1. Residents moved into RMV on September 1st, 20223. 2. A development agreement has been executed with Triumph development for 290+ units at Timber Ridge and final approvals have been received. Construction anticipated to start in May 2024. 3. The Town is working with Corum to develop West Middle Creek. This project is currently in the DRB process. 4. The Town is under contract to purchase 3 CDOT parcels including the east Vail parcel, land adjacent to West Middle Creek housing site, and the Timber Ridge housing project. We anticipate closing on the Timber Ridge and West Middle Creek CDOT parcels in the next four weeks. 5. TOV and other stakeholders have begun working with the State Land Board on the Dowd Junction property. We are on track to exceeding this goal. Housing Director lead, supported by Town Manager & Deputy Manager, Finance Dept, Public Works, Com Dev, Econ Dev Civic Hub and Town Hall By November 1, 2023: Determine a program, budget, and critical path to renovate Dobson Ice Arena so that it will continue to serve Vail for another 40 to 50 years. By no later than September 1 of 2024, (Modified by council on July 18, 2003) the town will Determine whether to renovate or relocate Town of Vail offices and if relocated determine best location(s), a budget, and a timeline for relocation or renovation and determine the preferred community uses to be developed at the Civic Hub. “ Dobson: Staff has received cost proposals from three general contractors for Dobson. These costs exceed the $55 million budget and the contractors are providing ideas on how to bring the project back to budget. Town Hall/Civic Center: Contract awarded to 4240/Design Workshop/EPS to conduct spatial, floor planning, and economic analysis on Civic Hub site, Municipal Complex, and Public Works Site Public Works Director - Dobson/ Town Manager & Com Dev Director, Econ Dev Excellent Customer Service By November 1, 2023: Create a clear definition for providing excellent customer service to our residents and guests for town services and a means of measuring to what degree we are providing excellent customer service. Identify and implement metrics for objectively measuring organizational The goal is to create clear standards for customer service related to our residents, guests, and internal customer service. On November 7th, staff provided a framework for achieving this goal. Full implementation of this goal will occur in 2024. On November 7 th Council reviewed high level goals for this project and a framework for measuring those goals. There was general acceptance of the proposed next steps. Town Manager and Leadership Team 219 Page 4 effectiveness and health so that a baseline is developed which can be improved on in future years. Land Use Regulations Support Town Goals By November 1, 2023: Review and analyze Title 12 Zoning, the Official Zoning Map, Title 14 Development Standards, and other pertinent land use policy language including the Town of Vail Comprehensive Plan. Bring forward recommendations for amendments to help foster the creation of affordable housing and improved efficiency of the development review process. Staff has completed an extensive set of recommendations to align the zoning code and administrative policy with the goal of creating affordable housing and these recommendations have been implemented or adopted by the Town Council. Examples of implementation include creating two affordable housing zone districts that provide flexibility for future housing project sand greater predictability by being more prescriptive with standards (versus a negotiation). Ordinances implementing these recommendations have been approved by the Town Council. Community Development Director, Public Works Director, Fire Chief The following is an update on the 26 Council priority actions identified in 2022: Vail Town Council Action Plan PROJECT MILESTONE UPDATES POINT of CONTACT COMMUNITY West Vail Master Plan Implementation Phase 1, Housing: Implementation of recommendations in Chapter 3, WVMP.Ordinance No. 19 adopted 10/07/23 May 2022 – October 2023. Phase 2, Commercial (West Vail Center): Implementation of recommendations in Chapter 2, WVMP. Overview and proposed next steps, December 2023. Phase 3, Transportation & Mobility: Implement recommendations in Chapter 4, WVMP. Coordinate implementation timeline in context of town-wide Transportation Master Plan. Matt Gennett, Community Development Director Timber Ridge Apartments Redevelopment Contract executed with Triumph Development to build Timber Ridge II. Aug. 1, 2023: Updated market study, design development, and entitlement approval process to redevelop Timber Ridge Village Apartments. Final approvals are being obtained from the PEC and DRB. Spring 2024 Construction begins. Feb. 1 – Apr. 1, 2025 New units expected to be completed and available for phased occupancy. George Ruther, Director of Housing Ford Park Master Plan Amendments Ford Park Master Plan Amendments. An update was provided to Town Council on July 18 and the plan was approved by Council on Nov.7th. The plan has many elements with potential for implementation over several years, dependent upon funding and prioritization. The Ford Park Operating Committee will be formed and begin meeting in early 2024 with the purpose of recommending items for implementation to Town Council. Todd Oppenheimer, Capital Projects Manager Short Term Rental Policy Amendments Jan. 1, 2023 Effective implementation date of Ordinance No. 11, Series of 2022. Feb. 28, 2023 STR license renewal deadline. Carlie Smith, Finance Director 220 Page 5 Early Childhood Initiatives Funding in 2023 ($250,000) for Council supported areas including: Community Tuition Assistance - ongoing grants for incomes below 450% of federal poverty Workforce Retention – grants to 2 programs for 2023 Expansion and Sustainability of ECE programs – infant subsidy and facility/lease support – pursuing expansion opportunities via in-home and/or new spaces Capital support – facility maintenance support ongoing & future capital support TBD Krista Miller, Human Resources Director Permanent Location for Children’s Garden of Learning Lease at temporary location expires 2026 or earlier pending 180 days’ notice. Staff are working to identify potential sites. Matt Gennett, Community Development Director Kathleen Halloran, Deputy Town Manager Wildland Urban Interface Code Amendments May 2023 Town Council update on 2022 Fire Free Five grant program. May-October 2023 Implement 2023 Fire Free Five grant program. Spring 2024 Fire Free Five code adoption consideration. Mark Novak, Fire Chief ENVIRONMENT USFS Booth Creek Fuels Reduction Project July 2023 USFS Record of Decision issued. Winter 2023/2024 Identify costs and funding sources.Cultural clearance. 2024-2030 Implementation - timeline is variable due to external factors. Mark Novak, Fire Chief Identify Alternative Fuel Solutions 2022 - First boiler replacement operational. Collecting data on usage. Town is under contract with the Grey Edge Group, to study feasibility of a networked geothermal system for decarbonizing the snowmelt system. Experts toured Vail infrastructure on May 8th. Kristen Bertuglia, Enviro mental Sustainability Director Sustainable Strategic Plan Jan. – Dec. 2023 Kristen Bertuglia, Environmental Sustainabilty Director Wildlife Crossing at Dowd Junction Feasibility and design RFP in 2023 to identify additional crossing opportunities in addition to Dowd. Kristen Bertuglia, Environmental Sustainability Director Global Friendship | Peer Resort Exchange Programming Staff to present a Global Friendship and Peer Resort proposed plan to town council in Q1, including existing relationships and exploring future visits to share best practices and learn from leading destinations. 2024 Mia Vlaar, Economic Development Director. Kristen Bertuglia, Environmental Sustainability Director Cultural Heritage Preservation & Programs 2023 Budget is $25,000. March 21, 2023 – Resolution No 4 passed for the Naming or Commemoration of town-owned properties. Town’s website has been updated to include an online application. Partner on Trailblazer Award process. Continued work in 2023 - Summervail Archives (on hold for now, need to reconnect with their team) ; Vail Valley Voices (ongoing project with many more oral histories still to be captured) ; Lori A. Barnes, Director of Library Services 221 Page 6 Library’s 40th Anniversary (celebration was first announced in March ; historic display on Hauserman table through the summer, Galleria display exhibit opened in August; July 4th Book ‘n Bake Sales (Theme is “This Library is Your Library – 40 Years Strong”) ; Eagle County celebrates 140 years (Library hosted the traveling photography exhibit in April) ; CHC website has been further updated to include cultural initiatives from other departments ; CHC committee meets bimonthly. Open Lands Plan 2022-2028 - Biodiversity study to kick off in late summer 2022. Field work began June 15 Kristen Bertuglia, Environmental Sustainability Director Building Code Regs & Climate Action Plan Implementation May 2022 Phase 1 complete – Adoption of 2021 ICC Codes with additions for solar and EV readiness 2023. Phase 2 – Roadmap to Zero, incentives to include outdoor energy uses/snowmelt offset program. Solar RFP responses received, contract to be completed June 20. Matt Gennett, Community Development Director ECONOMY 2. Dobson and Civic Area Plan Implementation Dobson Ice Arena – By November 1st, 2023, determine cost for Dobson; by November 2024 determine location for Town Hall services.Dobson:Architect/design firm and owner’s rep presented conceptual designs for Dobson Ice Arena renovations during a Joint meeting with VRD and Town Council on July 18. Conceptual designs were adjusted based on feedback. Town Council presentation on August 1st responding to seating capacity questions and asking to continue moving forward with the recommended design and funding plan. August 15th contract for schematic design awarded to Populous team and moving forward with the $55M option. Schematic design was presented to Town Council on Dec 5. Civic Area – Contract awarded to 4240/Design Workshop/EPS to conduct spatial, floor planning, and economic analysis on Civic Hub site, Municipal Complex, and Public Works Site. Matt Gennett, Community Development Director Greg Hall, Public Works Director 4. Zoning Review Propose changes to zoning regulations to enhance or encourage workforce housing: Ordinance No. 17 approved on 09/19/23 which allows development on steep slopes in H district. First reading of Ordinance Nos. 24 & 25 on 11/07/23 to make certain strategic amendments to the H district and allow higher retaining wall heights for housing development in the proposed H and H2 zone districts. Matt Gennett, Community Development Director Special Events Funding Model Alternatives Initiative As part of the reimagining and restructure of the economic development department as a destination marketing organization (DMO), special events strategy and funding will be explored in Q2. Carl Ribaudo is providing consulting services to address the town’s reorganization into a Destination Marketing Organization including marketing, special events, welcome centers, and business development. Mia Vlaar, Economic Development Director Vail’s Stewardship Roadmap Adoption of plan by resolution by Vail Town Council occurred in August, 2023 and initial implementation was built into deaprtmetn budgets. An RFP has been published to engage a destination stewardship consultant to support the implementation of the plan and community adoption in 2024.i Mia Vlaar, Economic Development Director Next Steps for TIF Funding Estimated funds available between 2022 and 2030 total approximately $45 million. Timeline: 3 - 5 years Current plan is to use remaining $45M toward the $55M Dobson Ice Arena renovations. Kathleen Halloran, Deputy Town Manager Economic Development Following the reimagining and restructuring of the department as a destination marketing organization (DMO), the economic Mia Vlaar, Economic 222 Page 7 Strategic Plan Update development strategic plan will be wrapped into the overall new TOV Strategic Plan set for development in 2024. Development Director EXPERIENCE 3. Excellent Customer Service By November 1, 2023, achieve the following: Create a clear definitions of excellent customer service to our residents and guests and a means of measuring to what degree we are providing excellent customer service. Identify and implement a metric for objectively measuring organizational effectiveness and health so that a baseline is developed which can be improved on in future years. Presentation to Town Council November 7 of a high-level summary for implementation of Excellent Customer Service Plan. November 7 also includes a presentation by RRC & Associates with the summary results of post-visit guest surveys from Winter ‘22/’23 and Summer ‘23. Kathleen Halloran, Deputy Town Manager Go Vail 2045 – Vail Mobility & Transportation Master Plan July 2022 – May 2024. Completed existing conditions public outreach/analysis and Noise Study update. Team is in the process of drafting initial recommendations which will be presented to the public and Council this summer for initial comment and feedback. Presentations made to Town Council August 1, August 15; Oct 17, and Dec 19. An overview summary of these presentations will be coming in early 2024. Tom Kassmel, Town Engineer Public Works Shops Expansion and Access Improvements March 2021 – June 2022. - Access Improvements: Engaged design team to provide a scope to provide additional steps to provide access to the upper level of the public works shop building. Greg Hall, Public Works Director E-Vail Courier Implementation Oct. 1, 2022 - Full implementation began. Council was updated on May 16th on the success of the program and lessons learned. Town Council passed an ordinance in October for an expansion of the program to include large couriers such as FedEx/UPS. The town is currently fighting a request for a Temporary Restraining Order by these two carriers. Ryan Kenney, Police Commander Regional Transportation Ballot measure passed in Nov. 2022. Town Council member Barry Davis is serving as the town’s representative on the RTA board. This first year will be spent establishing the new RTA.The RTA provided an update to Town Council on August 1 st Public Parking Initiatives New parking rates and passes were implemented at the start of the 2022/23 winter season. On April 18, Town Council approved recommendations by the Parking Task Force to implement changes to summer parking overnight rates and event parking rates at Ford Park. Parking Task force met July 21 to continue discussions for the upcoming winter parking program. Town Council approved the winter parking plan on August 15th. Parking Task Force set to meet in the coming month to recap the summer parking program and learnings from new initiatives (carpool, etc) Greg Hall, Public Works Director Guest Experience Initiatives PrimaVail and PrimaService programming will continue through winter season Mia Vlaar, Economic Development Director 223 Page 8 224 AGENDA ITEM NO. 5.2 Item Cover Page DATE:February 20, 2024 SUBMITTED BY:Stephanie Bibbens, Town Manager ITEM TYPE:Town Manager Report AGENDA SECTION:Matters from Mayor, Council, Town Manager and Committee Reports (20 min.) SUBJECT:Council Matters and Status Update SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 240220 Matters.docx 2023 Town of Vail Social Media Year in Review FINAL (1).pdf 225 COUNCIL MATTERS Status Report Report for February 20, 2024 Town Council would like a conversation prior to next winter season regarding the DEVO ski school program and parking issues in the Vail Transit Center. Town Council has requested a matrix comparing town of Vail building code regulations to other municipalities in order to identify similarities and/or differences Town Council was interested in a tour of Eagle River Water & Sanitation District facilities. ERWSD is happy to host a tour; we’re looking at Council Tuesdays in late March to early May for a potential date. Town Council gave a shout out to the Public Safety team during all the I-70 closures and are encouraged by the increased enforcement at Hanson Ranch Rd. Social Media Listening In lieu of a Social Listening report we are providing the 2023 Social Media Year in Review, attached below. In the News______________________________________________________ Feb. 1 Mountain Town ADUs Exempt from Legislation https://www.vaildaily.com/news/colorados-mountain-towns-adu-bill/ Vail.Gov Transition https://www.vaildaily.com/news/town-of-vail-transitions-to-new-website-domain/ Continuing to Make Progress -Valley Voices https://www.vaildaily.com/opinion/howard-continuing-to-make-progress/ Feb. 2 Upcoming Bills at Capitol https://www.vaildaily.com/news/bills-being-debated-at-the-colorado-capitol-could-impact- outdoor-recreation/ 226 Feb. 5 Rod Slifer https://www.vaildaily.com/news/rod-slifer-a-true-vail-original-embodied-the-spirit-of-the-town- and-the-mountain/ Feb. 6 Disney Ties to Vail https://www.vaildaily.com/news/new-book-details-disneys-attempt-to-build-a-ski-resort-and-ties- to-vail/ Feb. 7 Lunch with the Locals - Shoshone https://www.vaildaily.com/news/shoshone-water-rights-locals-lunch/ Learning from our Elders (Rod Slifer tribute) - Editorial https://www.parkrecord.com/opinion/journalism-matters-learning-from-our-elders/ AIPP and DRB Vacancies https://www.vaildaily.com/news/vail-seeks-applicants-for-design-review-art-in-public-places- boards/ Feb. 8 Dr. Eck Selected as Trailblazer Award Recipient https://www.vaildaily.com/news/jack-eck-one-of-vails-first-doctors-and-a-health-care-pioneer- receives-the-2024-trailblazer-award/ Shoshone Water Rights https://www.vaildaily.com/news/how-the-shoshone-water-rights-acquisition-helps-eagle-county/ Vail PD Seeks Stalker https://denvergazette.com/outtherecolorado/news/mountain-town-police-search-for-suspect-in- potential-stalking-case/article_dd18a366-c69e-11ee-b1eb-43b31c73d78a.html Feb. 9 Car Share Program https://www.vaildaily.com/news/vail-car-share-program/ Feb. 11 Dr. Eck Selected as Trailblazer Award Recipient https://www.realvail.com/dr-jack-eck-named-2024-town-of-vail-trailblazer-award- recipient/a18381/ Rod Slifer Tributes https://www.realvail.com/rod-slifer-helped-make-a-meadow-into-a-mountain-town-with-his- warmth-wit-and-wisdom/a18375/ https://www.vaildaily.com/opinion/carnes-the-man-the-myth-my-reality/ Feb. 12 A Tale of Two Bills 227 https://www.vaildaily.com/news/a-tale-of-two-bills-rival-short-term-rental-bill-expected-to-be- introduced-in-the-colorado-legislature-soon/ Feb. 14 Building a Continuum of Housing https://www.vaildaily.com/news/where-can-vail-build-a-continuum-of-housing-for-its-residents/ One Month in at the Capitol - Valley Voices https://www.vaildaily.com/opinion/roberts-one-month-in-at-the-capitol/ Thank You, Come On and Wow - letter https://www.vaildaily.com/opinion/letter-thank-you-come-on-and-wow/ Upcoming Dates March 5 Annual Community Meeting: Donovan Pavilion 4:30pm doors open; meeting begins 5pm 228 Social MediaYEAR IN REVIEW Town of Vail - Government @vailgov Vail Police Department @vailcopolice Vail Fire and Emergency Services @vailfiredept Vail Public Library @vail_public_library @restoregorecreek 229 Social MediaYEAR IN REVIEW OVERVIEW Town of Vail - Overview by Kari Mohr Town of Vail - Government The audience breakdown of the Town of Vail Facebook and Instagram show that the often hard to reach 25-44 demographic is strongly represented in our followers, with Instagram skewing even younger than Facebook. These followers are mostly represented by locals, which creates avenues to reach our younger residents that might not sign up for emails or attend our in-person events. Social media algorithms are the engine of what content gets seen by users, and the more engagement a page gets the more the channels will continue to serve up their content - hence the communications department’s strategy to mix high-engagement content with informational messaging. Looking at the topic tags, you see that “Fun/Scenic” and “Town Council” posts are the top two topics by volume. In 2023 Instagram went all in on favoring videos which they term as “Reels”, as a result every top post on Instagram was a Reel. Aware of this change, the Communications Department increased usage of Reels from 13 in 2022 to 56 in 2023. Facebook post success is primarily driven by shares and comments, which is why many of the top performing posts were historic images that inspired nostalgic conversations in the comment section. Also, fun to see that our April Fools post made it into the top 5 - a sign that our audience is open to the town having some fun and a sense of humor. The top Instagram posts showed a nice mix of topics, from the employee mountain top party to a public input plug featuring a young constituent advocating for responsible fishing to the 4th of July parade, a housing lottery winner, a scenic video of the clash of seasons taken from the North Trail and a Art in Public Places installation. It goes to show that a mix of content can connect with our audience and showcase the diverse work that makes up the Town of Vail. You don’t have to be an industry insider to have heard about the drama over at X, formerly Twitter, which had been the town’s longest serving and highest post volume social media channel until the ownership change. Many individuals and brands have moved away from the platform, causing a sharp decline in engagement rates. The town has moved away from live tweeting Town Council meetings and while we still post regularly on the platform, it is no longer a main focus of our communications efforts. One metric that is down significantly is Instagram Received Messages, which is the number of posts, comments and private messages our page received. This can be attributed to the 71% jump in received messages from 2021 to 2022, which stemmed from the April 2022 condemnation vote coupled with the parking pass changes that went into effect that winter season. These two events created a very high volume of tags, comments and private messages on Instagram that wasn’t as prevalent in 2023. @vailgov Social MediaYEAR IN REVIEW 230 Social MediaYEAR IN REVIEW Impressions The number of times our content was displayed to users. Town of VailFACEBOOK 163,163 Impressions Top Organic Content - by Impressions 807,289  41.7% Audience Snapshot Men 36.9% Women 63.1% Top Follower Locations Vail 11.8% | Avon 7.3% | Edwards 5.2% Engagements The number of times users engaged with our content (likes, replies, clicks, shares) 39,003  19.5% Audience 4,286  17.2% Received Messages # of posts, comments and private messages your pages received. 726  48.5% 150+” of snow clearing message - Image 35,787 Impressions Historic summer - Image 25,021 Impressions Mental health/historic - Image 24,226 Impressions NYE Informational - Image 18,553 Impressions April Fools - Image 16,204 Impressions Art in Public Places - Image 25-34 35-44 Age 0% 5% 10% 15% 20% 45-54 55-64 65+ 356 total posts  5% Breakdown: 339 Posts (includes video, image, text), 11 Reels, 6 Ads. What are we talking about on Town of Vail Facebook? (Tags are added manually so oer a representative sample ) Impressions by Month12 3 4 5 6 231 Impressions by Month What are we talking about on Town of Vail Instagram? (Tags are added manually so oer a representative sample ) Top Follower Locations Vail 13.4% | Edwards 7.5% | Avon 6.8% 13,299 Impressions Mountain Top Employee Party - Reel 4,255 Impressions 3rd Grade Buttery Release - Reel Ziggy Public Comment - Reel 6,165 Impressions 4th of July - Reel 5,440 Impressions Housing Lottery Winner - Reel 4,910 Impressions Scenic/First Snow - Reel 4,600 Impressions Top Organic Content - by Impressions Social MediaYEAR IN REVIEW Impressions The number of times our content was displayed to users. Town of VailINSTAGRAM 488,601  10.8% Engagements The number of times users engaged with our content (likes, replies, clicks, shares) 16,929  15.1% Audience 5,705  13% Received Messages # of posts, comments and private messages your pages received. 1,885  32.7% Audience Snapshot Men 39.4% Women 60.6% 18-24 25-34 Age 0% 5% 10% 15% 20% 35-44 45-54 55-64 400 total posts  10.8% Breakdown: 122 images, 56 Reels, 222 Stories. 1 2 3 4 5 6 232 Social MediaYEAR IN REVIEW OVERVIEW Vail Police - Overview by Camille Deering Vail Police Department @vailcopolice The Vail Police Department continued to show double-digit growth in their audiences on both their Instagram and Facebook platforms. On Facebook, press release posts notifying the public of recent crime and arrests continue to be the most popular and drive the most conversation. VPD’s Facebook audience continues to be engaged and give feedback on posts involving police activity. On Instagram, VPD introduced a couple reels this year with success. The reel featuring the Ride in Remembrance performed well and the department hopes to produce more reels in 2024. The VPD Instagram platform focuses on the lighter side of police activity with posts featuring officers having fun on patrol or hosting events. For 2024, the Vail Police Department would like to continue growing their audiences and focus on creating more engaging content like reels. While we will continue to post crime press releases, VPD hopes to grow content that shows officers doing more of the great work they do in Vail. 233 Social MediaYEAR IN REVIEW Impressions The number of times our content was displayed to users. PoliceFACEBOOK 938,547  1.9% Engagements The number of times users engaged with our content (likes, replies, clicks, shares) 152,721  2% Audience 7,429  14.1% Received Messages # of posts, comments and private messages your pages received. 804  31.5% Audience Snapshot Men 42.6% Women 57.4% Top Follower Locations Vail 7.6% | Avon 7.4% | Gypsum 6.5% 25-34 35-44 Age 0% 5% 10% 15% 20% 45-54 55-64 65+ 174 total posts  7% Breakdown: 173 Posts (includes video, image, text), 1 Reel 5 Top Organic Content - by Impressions 640 Impressions Amnesty month - Reel 593 Impressions 1 2 2 26,082 Impressions Burglary Arrest - Image 3 4 23,137 Impressions Fight at Red Lion - Image 5 20,692 Impressions Roundabout Work Detour - Image 6 20,641 Impressions Moncler Theft - Image7 20,232 Impressions Stolen Bikes - Images8 78,494 Impressions On Patrol at Vail Apres - Image 47,699 Impressions Bike Theft Arrest - Split Image 28,688 Impressions Grappa Theft - Images 1 2 3 Impressions by Month 234 Social MediaYEAR IN REVIEW Impressions The number of times our content was displayed to users. PoliceINSTAGRAM 41,766  19.7% Engagements The number of times users engaged with our content (likes, replies, clicks, shares) 2,346  30% Audience 1,729  12.5% Received Messages # of posts, comments and private messages your pages received. 189  4.1% Top Follower Locations Vail 12.2% | Edwards 9.3% | Eagle 8.5% Audience Snapshot Men 44.4% Women 55.6% 25-34 Age 0% 5% 10% 15% 20% 35-44 45-54 55-64 55-64 43 total posts  .07% Breakdown: 37 images, 2 Reels, 4 Stories. 926 Impressions Top Organic Content - by Impressions “Catch A Craysh” - Image 640 Impressions Amnesty month - Reel 593 Impressions 1 2 2 1,525 Impressions Bike to School Day - Images 3 4 1,469 Impressions Ride in Remembrance - Reel 5 1,362 Impressions Slow Down, Move Over - Image 6 1,285 Impressions Cunningham Remembrance -Image7 1,261 Impressions Closing Day - Image8 2,579 Impressions On Patrol at Vail Apres - Image 2,201 Impressions Rock Slide Dowd - Images 1,670 Impressions Patrol Car Rear-Ended - Image123 Impressions by Month 235 Social MediaYEAR IN REVIEW OVERVIEW Vail Fire - Overview by Katherine Blocker Vail Fire and Emergency Services @vailfiredept Vail Fire’s audience and engagement on both Facebook and Instagram continues to grow year after year. It's clear that our community values content that is relevant to their local area, especially when it involves fires and vehicle incidents, as well as posts featuring the department's members. The connection our followers feel when they see familiar faces reinforces their engagement with Vail Fire. The success of our posts on International Women's Day, the awards dinner, and Tom Talbot's retirement highlights the importance of recognizing and celebrating the contributions of our team members. Additionally, the unexpected traction gained from the winter driving tips post on Facebook demonstrates the power of community sharing and the potential reach it can have. Job opportunity content consistently performs well, which speaks to the positive reputation and desirability of working for Vail Fire. 236 Social MediaYEAR IN REVIEW Impressions The number of times our content was displayed to users. FireFACEBOOK 311,799  41.7% Audience Snapshot Men 65.8% Women 34.2% Top Follower Locations Vail 3.6% | Denver 2.8% | Eagle 2.8% Engagements The number of times users engaged with our content (likes, replies, clicks, shares) 31,039  19.5% Audience 6,692  10% Received Messages # of posts, comments and private messages your pages received. 291  57.3% 25-34 35-44 Age 0% 5% 10% 15% 20% 45-54 55-64 65+ 356 total posts  5% Breakdown: 339 Posts (includes video, image, text), 11 Reels, 6 Ads. 5 Top Organic Content - by Impressions 640 Impressions Amnesty month - Reel 593 Impressions 1 2 2 9,312 Impressions Structure Fire - Images 3 4 8,165 Impressions Lateral Fireghter5 7,989 Impressions I-70 Motor Vehicle Accident - Images6 7,171 Impressions International Women’s Day - 7 6,277 Impressions Motor Vehicle Accident - Images 8 37,564 Impressions E-Bike Fire - Images 13,063 Impressions Winter Driving Tips - Graphic 9,312 Impressions Tom Talbot Retirement - Image 1 2 3 Impressions by Month 237 Top Follower Locations Vail 7.6% | Edwards 6.2% | Eagle 6.1% Social MediaYEAR IN REVIEW Impressions The number of times our content was displayed to users. FireINSTAGRAM 60,249  7.6% Engagements The number of times users engaged with our content (likes, replies, clicks, shares) 3,075  15.6% Audience 1,857  12.3% Received Messages # of posts, comments and private messages your pages received. 216  14.3% Audience Snapshot Men 60.4% Women 39.6% 18-24 25-34 Age 0% 5% 10% 15% 20% 35-44 45-54 55-64 124 total posts  63% Breakdown: 55 images, 5 Reels, 64 Stories. 926 Impressions Top Organic Content - by Impressions “Catch A Craysh” - Image 640 Impressions Amnesty month - Reel 593 Impressions 1 2 2 1,331 Impressions Rosenbauer RTX - Images 3 4 1,328 Impressions Lateral Fireghter Hiring - Image5 1,322 Impressions Motor vehicle accident - 6 1,229 Impressions Motor vehicle accident - 7 1,219 Impressions International Women’s Day- Images 8 1,472 Impressions Structure Fire - Images 1,470 Impressions E-Bike Fire - Images 1,380 Impressions Awards Banquet - Images 1 2 3 Impressions by Month 238 Social MediaYEAR IN REVIEW OVERVIEW Vail Library - Overview by Kari Mohr and Abigail Brezinka Vail Public Library @vail_public_library The Vail Public Library started 2023 strong on social and can attribute much of the drop in impressions to decreased posting due to changes in staffing that began in summer and continued through late November. The increase in “Received Messages” on Facebook reflects changing guest behavior as library users increasingly turn to the library’s social media as a guest service platform for general questions and guidance with their accounts. The library’s brand lends itself to the most fun and creative content of the Town of Vail’s departments and has the most regular, in-person contact with guests, which is exemplified in the fact that social media followers engage so highly with posts featuring library staff. Last year the library also leaned into short form video which performed particularly well on Instagram, with Reels accounting for five of the top eight posts. Other popular content on both channels were events where partners were tagged and shared the post to their channels, amplifying the message; as well as posts that featured Library themed holidays and social trends, which also garner likes from the wider library social media community. The library’s audience has the highest share of women compared to the other departments, especially in the 25 - 54 age range. This parallels the demographics we see attending children’s programming and other in-person events. In 2024, library staff looks forward to maintaining engagement with this audience while also leveraging posts and events with Police and Fire to potentially reach less represented demographics. We also observe there may be some correlation between impressions and higher visitation months when visitors with young children are making use of the library and we offer more programming. 239 Social MediaYEAR IN REVIEW Impressions The number of times our content was displayed to users. Vail Public Library FACEBOOK 92,412  52.3% Audience Snapshot Men 23.5% Women 76.5% Top Follower Locations Vail 11.4% | Avon 8% | Edwards 7.2% Engagements The number of times users engaged with our content (likes, replies, clicks, shares) 5,686  52.6% Audience 1,758  16.4% Received Messages # of posts, comments and private messages your pages received. 294  18.5% 25-34 35-44 Age 0% 5% 10% 15% 20% 45-54 55-64 65+ 163 total posts  27% Impressions by Month 926 Impressions Top Organic Content - by Impressions “Catch A Craysh” - Image 640 Impressions Amnesty month - Reel 593 Impressions 1 2 2 992 Impressions OBOV - Image 3 4 840 Impressions Storytime with Vail Vet Partners 5 795 Impressions National Library Workers Day - 6 502 Impressions Visit Vail Fire Station - Image7 470 Impressions Penguin Storytime - Image8 1,284 Impressions Happy Birthday Dr. Seuss - Image 1,282 Impressions Let Freedom Read - Image 1,078 Impressions Evenings of Engagement - 1 2 3 240 Top Follower Locations Vail 13.9% | Edwards 10.4% | Avon 9.3% Social MediaYEAR IN REVIEW Impressions The number of times our content was displayed to users. Vail Public LibraryINSTAGRAM 48,132  6.4% Engagements The number of times users engaged with our content (likes, replies, clicks, shares) 2,630  13.3% Audience 1,306  11.1% Received Messages # of posts, comments and private messages your pages received. 377  9.9% Audience Snapshot Men 23% Women 77% 65+25-34 Age 0% 5% 10% 15% 20% 35-44 45-54 55-64 238 total posts  0% Breakdown: 119 images, 16 Reels, 103 Stories. 926 Impressions Top Organic Content - by Impressions “Catch A Craysh” - Image 640 Impressions Amnesty month - Reel 593 Impressions Children’s Librarian Probs - Reel Impressions by Month 1 2 2 592 Impressions Vail StoryWalk - Reel 3 4 511 Impressions Santa & the Babies - Reel 5 510 Impressions Santa & the Babies - Reel 6 502 Impressions Tesla Ride & Drive Event - Image7 470 Impressions Penguin Storytime - Image8 241 Social MediaYEAR IN REVIEW OVERVIEW Vail Library - Overview by Pete Wadden @restoregorecreek Engagement with the Restore the Gore Instagram page remains strong. There are many opportunities to share visually engaging content relating to Gore Creek, stream restoration, ecology, and fishing- making Instagram an ideal platform for the Restore the Gore campaign. Video posts seem to draw the most engagement, with wildlife following close behind. While posts promoting upcoming events don’t draw as much online engagement, we know we are reaching locals with those posts because they tell us that they follow our page to learn about upcoming events. The @restoregorecreek Instagram page remains a great way for folks to connect with Vail’s signature waterway whether they are in Town or not. 242 Social MediaYEAR IN REVIEW Impressions The number of times our content was displayed to users. Restore the GoreINSTAGRAM 32,796  8.1% Engagements The number of times users engaged with our content (likes, replies, clicks, shares) 1,988  20.5% Audience 1,300  8.3% Received Messages # of posts, comments and private messages your pages received. 86  21.1% 92 total posts  50% Breakdown: 40 Posts, 52 Stories. 2,194 Impressions Top Organic Content - by Impressions Snow dump - Video 1,679 Impressions Creek conuence - Video 1,144 Impressions Stormwater Monitoring - Video Impressions by Month 1,006 Impressions GoPro Mountain Games - Video 759 Impressions Signs of Spring - Images 752 Impressions Bubblegum the sh - Image 751 Impressions CPW Fish Surveys - Image 746 Impressions Boreal Toad Bike Path - Image 1 2 3 4 5 6 7 8 243