New River Valley 

Regional Energy Plan: Technical Report 

 Prepared for  

New River Valley Planning District Commission Livability Initiative 

 

 

 

John Randolph Virginia Tech 

 November 2013 

NewRiverValleyRegionalEnergyPlan:TechnicalReport Acknowledgements...............................................................................................................ii1. PreparefortheFutureandLeadSouthwestVirginiatoAffordableCleanEnergy................................................................................................................................1.1 2. NewRiverValley’sEnergyProfile........................................................................2.13. PrincipalPlayersinthePresentandFutureNRVEnergyPicture............3.14. StrategicLessonsfromNRV’sEnergyPicture...................................................4.1 5. EnergyandtheNRVLivabilityInitiative.............................................................5.16. EightPrinciplesoftheNewRiverEnergyPlan.................................................6.1 7. PriorityStrategies.........................................................................................................7.1NRVREPReferences,DataSources,andNRVEnergyWeblinks.....................R.1 AppendicesA. AdditionaldetailonNRVEnergyPicture............................................................A.1B. DataAnalysisMethods................................................................................................B.1C. VirginiaRenewableEnergyModelOrdinances................................................C.1D. DataandSources............................................................................separatedatafiles

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New River Valley Renewable Energy Plan: Technical Report

Acknowledgements This Regional Energy Plan was prepared under contract for the New River Valley Livability Initiative, funded by the NRV Planning District Commission Sustainable Communities grant from the U.S. Department of Housing and Urban Development. Many thanks to Kim Thurlow, Carol Davis and PDC Director Kevin Byrd who oversaw the Livability Initiative program and this project. The process of developing this plan involved many people. An Energy Working Group was formed in August 2011 and met about monthly for a year to discuss potential energy goals for the region. That group included Andy Alden, Peter Anderson, Bill Beachy, Pat Bixler, Mason Cavell, Jeffrey Cole, J.D. Fawcett, Susan Garrison, Joe Jones, Beth Lohman, Dan Lookadoo, Jamie MacLean, Bruce Oliver, Sean McGinnis, Jackie Pontious, Jessee Ring, Dave Roper, Steve Sandy, Julio Stephens, Ed Tuchler, and Billy Weitzenfeld. The discussions of that group set the stage for this Plan. The Plan reflects the general outcome of the group’s discussions, but it may not conform to the opinions of all group members. In addition, other outreach programs of the Livability Initiative were used to gauge public perceptions on energy issues, concerns, and strategies. The community survey and stakeholder meetings, reported on in section 5, were useful in developing the Plan’s Eight Principles. Data used in the analytical portion of the plan came from several sources, and special thinks should go to local utilities which provides consumption and cost information. These include AEP/Appalachian Power, ATMOS Energy, Virginia Tech Electric Service, and Radford Electric Department. See the methodology appendix for information on these data sources. Special thanks also go to Ken Jurman from the Virginia Department of Mines, Minerals and Energy, who provided data on renewable energy systems in the region and to Bill Beachy from Community Housing Partners who provided data on weatherization retrofits. Several Virginia Tech students contributed to the work required for the development of this plan, including those in UAP 4364 Environmental Planning Seminar (spring 2011), UAP 4354/5794 Environmental Planning Studio (fall 2011 and 2012), and UAP 4394/5074 Community Renewable Energy Systems (spring 2013). Thanks to Ryan Peterman, Danny Carpenter, Adam Hise, and Toshy Penny, whose work was cited in this report. Special thanks to planning graduate students John Proffitt and Mike Smith who continued their studio work with masters capstone projects for this plan on residential retrofit program development and solar project development. Finally, thanks to several reviewers provided useful comments on previous drafts of this report, including Carl Davis, Kim Thurlow, Kevin Byrd, Beth Lohamn, Dave Roper, and Mason Cavell.

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TheNewRiverValleyRegionalEnergyPlan:PreparefortheFutureandLeadSouthwestVirginiatoAffordableCleanEnergyThisRegionalEnergyPlanprovidesaframeworkfortheNewRiverValleytoprepareforthefutureandleadSouthwestVirginiatoaffordablecleanenergyoverthenext10‐20years.Itdescribesthecurrentenergysupplyandconsumptionpatternsoftheregion.Thesepatternsshowthesignificantgrowthofenergycostsinthelasteightyearsduetopriceincreasesforelectricityandpetroleumfuels.Nearlyallofthe$½billionspentbyenergyconsumersforfuelsandelectricityleavestheregionimmediatelybeforethedollarscancirculateinthelocaleconomyandcreateeconomicandemploymentbenefits.Thesecostsareexpectedtocontinuetoincreaseasaresultofhigherpricesduetoglobalpetroleummarketsandprobableenvironmentalprotectioncostsoncoal‐firedpowerplants,thesourceofmorethan70%oftheregion’selectricity.Theglobalandnationalenergyeconomyisevolvingquicklyasaresultofgrowinginternationaloilmarketsandeffortstoreducecarbonemissionstomitigateclimatechange.Thisevolutionwillmeanmorecostlyfossilfuelenergy.Asaresult,themostpromisingenergyfutureisso‐called“cleanenergy,”characterizedbyefficiencyofuseandlow‐carbonenergysources,especiallyrenewableenergy.Households,communities,andlocaleconomiesthatarefrontrunnersintheevolutiontowardcleanenergywillbeadvantagednotonlyinlowerfutureenergycosts,butinfinancialsecurityandeconomicopportunities.ThisPlansuggeststhattheNewRiverValleyneedstoprepareforthisfutureofmorecostlyconventionalenergybyinvestinginenergyefficiencyimprovementsanddevelopmentoflocalenergysources.Bydoingso,theregioncanreducetheimpactoffutureenergypriceincreases;retainenergydollarstostimulatethelocaleconomy;andgrowacleanenergyresearch,training,andservicessectortoservenotonlytheNRVbuttheentiresouthwestVirginia.TherearemanyfactorsaffectingthefutureofNRVenergythatarebeyondthecontroloflocalinitiatives;someofthesefactorsmayfavorcleanenergy,somemaynot:

Energypricessetbydomesticandglobalmarketsforoil,naturalgas,coal,andbiomassfuelsandinstallationcostsforenergyefficiencyandnuclear,solarandwindsystems.Higherconventionalenergypricesandlowerefficiency/renewablescostsadvancecleanenergy;lowerconventionalenergypricesandhighercleanenergycostsdonot. Decisionsbyutilitiesservicingtheregionregardingtheirregulatedprices,energysourcesandfuelmix,andencouragementofdistributedenergyefficiencyandrenewablesystems,decisionsthataredrivenbymarketconditionsandstateandfederaldirectives. Federalenergypoliciesaffectingenvironmentalregulationsonfossilandnuclearsources;efficiencyandrenewablesstandards;andrelativesubsidiesforfossilenergy,nuclearpower,andefficiencyandrenewables.Inaddition,transformingtheNRVenergypatternstoachieveacleanenergyfuturewithitseconomic,social,andenvironmentalbenefits,requiresovercomingcertaininherentcultural,financial,political,andpolicybarriersintheregionandstate: Acleanenergyfuturerequiresa“cultureofconservation”topromptpersonal,household,business,neighborhood,community,andlocalgovernmentdecisionsforcleanenergyinvestmentsandbehavior.Culturalchangeisnoteasy.

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Transformationtomoreefficientbuildingsandrenewableenergysystemsrequiresattractivefinancingmechanisms,generatingindividualandcommunityinvestment,andattractingadditionalinvestmentfromoutsidetheregion. Motivatingacultureofconservationandattractinginvestmentrequireswidecommunityparticipationandleadershipfrombusinesses,households,andlocalgovernments. Otherregionshavebeensuccessfulinmovingtowardcleanenergy,buttheyhavehadstatemandatesandincentivestodrivethetransitionthroughmarketinvestment.Virginialagsbehindotherstatesincleanenergypolicy,ranking37thinenergyefficiencypolicyand33rdinrenewableenergypolicy.UntilVirginiaadoptsmoreprogressivecleanenergypolicies,itwillbedifficultfortheNewRiverValleytoattractcleanenergyinvestmenttocompetewithregionsinotherstates.This10‐20‐yearPlanpromotesovercomingthesebarriersthroughinnovativeprogramsforeducation,investment,partnerships,andimprovedstateenergypolicy.Italsosuggeststhattheregioncantakeimmediatestepstowardacleanenergyfuturewithincurrentstatepolicy,albeitataslowerpacethanwithmoresupportivepolicies.Theregionisblessedwithopportunityforcost‐effectiveefficiencyandrenewableenergypotential,excellentcleanenergyeducationandtrainingprograms,amajorenergyresearchuniversity,industrialandinstitutionalmodelsdedicatedtoadvancingcleanenergyintheiroperations,andacoreoflocalgovernmentsandcommunityorganizationspledgedtoadvancecleanenergy.ThisPlanisframedaroundEightPrinciples,theproductofayear‐longdiscussionbyNRVLivabilityInitiative’sEnergyWorkingGroupandotherLivabilityInitiativepublicinvolvementsurveysandstakeholdermeetings.Thefollowingprinciplesemphasizelocaleconomicdevelopmentofenergyservicesandtraining,preservinglifestylechoices,energyefficiencyimprovement,localrenewableenergydevelopment,andstrategicpartnershipstocreativeacultureofcleanenergybyadoptingpoliciesandprogramsthatreducebarriersandpromoteimplementation.

EightPrinciplesoftheNewRiverValleyRegionalEnergyPlan

1. PositiontheNewRiverValleyEconomyforanAffordable,Reliable,andCleanEnergyFuture

2. HelpPreserveRuralLivingChoicesthroughEnergyImprovements3. EnhanceLivabilityandEfficiencyofUrbanTownandVillageLiving4. ReduceEnvironmentalImpactofEnergyUse5. ImproveBuildingEfficiencybeginningwithResidentialRetrofit6. DevelopRenewableEnergySystems7. EngageMultiplePartiesinCreatingaCultureofCleanEnergy8. AdoptLocalPoliciesandPromoteStatePoliciestoImplementtheNRV

RegionalEnergyPlanThisdocumentfirstdescribestheregion’senergyconsumptionandcosttrendsaswellasprincipalplayersinNRVenergy.Itthensummarizesthekeylessonsfromthisinformationinsection4.Section5discussestheresultsoftheLivabilityInitiativespublicinvolvementprocessregardingenergy.Finally,sections6and7usetheEightPrinciplestopresentthePlan’sobjectives,strategies,andrecommendations.

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2.TheEnergyProfileoftheNewRiverValleyTheNewRiverValleyispredominantlyaruralregionwithapopulationof177,000atanaveragedensityof123peoplepersquaremile,about60%ofthestateaverage.Theregionhasseveralsmalltowns,aswellasgrowingurbanizedcentersincentralMontgomeryCounty(BlacksburgandChristiansburg)andRadfordCity.Averagehouseholdincomeisabout$46,000comparedtothestateaverageof$65,000,andpovertyratesrangebylocalityfrom8.5‐11.1%comparedtothestateaverageof7.5%.MajoremployersareVirginiaTech,RadfordUniversity,localgovernmentsandschoolsystems,healthcareproviders,andseveralmanufacturingandservicefirms,includingthefollowingwithmorethan500employees:Volvo,Celanese,Moog,Echosphere,Alliant,Rowe,Kollmorgen,Walmart,andBaeSystems(NRVDatabook,2013).RecenttrendsinenergyuseandexpendituresEnergyisprovidedfromadiversesetofsuppliersofelectricity,naturalgas,andpetroleumproducts(gasoline,dieselfuel,fueloil,andpropane)toNRVhouseholds,commercialandinstitutionalestablishments,industry,andtransportation.Below,welookatthethreeprimaryenergysources,aswellascoal,andreviewprogressinenergyefficiencyandrenewableenergyintheNRV.Inthenextsection,wereviewtheprincipalplayersinNRV’senergypicture.ElectricityElectricityissuppliedprimarilyfromAppalachianPowerCompany(APCO),adivisionofAmericanElectricPower(AEP).MunicipalutilitiesserveRadford(RadfordElectricDepartment(RED))andaportionofBlacksburg(VirginiaTechElectricService(VTES)),andtheCraig‐BotetourtElectricCoop(CBEC)servesaverysmallareaofnortheastMontgomeryCounty.TheselocalutilitiespurchasewholesalepowerfromAPCOanddistributeittotheircustomers.VTESservesVirginiaTechandtheolder,densercentralpartoftheTownofBlacksburgeastoftheuniversity.REDservestheareawithintheCityofRadfordthatextendsfromtheNewRivertoI‐81(seeAppendixA‐7formapsoftheserviceareas).Classifiedasmunicipalutilitiesandcoops,VTES,RED,andCBECarenotsubjecttotherulesoftheStateCorporationCommissionthatregulateAPCO’sactivities.VTESandREDsupplyabout20%oftheregion’sretailelectricityandAPCOsupplies80%,butabout97%oftheregion’selectricitycomesfromAPCOgeneratingfacilities.APCOhaslocalgeneratingfacilitiesatClaytorLakehydroelectricdam(750MW)andGlenLyncoal‐firedpowerplant(330MW).REDhasa1‐MWhydroplantattheLittleRiverDamandVTEShasa6.5‐MWcogenerationfacilityoncampus,bothofwhichsupplementtheirsupplies.NearlyallofAPCOpowerisgeneratedatAEPpowerplantsoutsidetheregionandthestate.Itsfuelmixatitspowerplantshaslongbeendominatedbycoal,buttheutilityisclosingsomecoal‐firedplants(includingGlenLynin2014)andisaddingnaturalgasgeneration.APCO’sfuelmixforelectricityin2012was72%coal,downfrom84%in2010and89%in2006.APCO’sremainingmixin2012was14.5%nuclear,11.7%naturalgas,1.3%wind,and0.6%hydro(APCO,2013).For2015,APCOexpectsitsmixtobe65‐67%coal,20‐21%naturalgas,and10‐12%renewables(R.Jefferson,APCO,DEQSmallSolarWG).

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NRVelectricityconsumptiontrendsbysectorfrom2008through2013areshowninfigure2.1.(2013figuresareestimatedbasedonthefirstfivemonthsoftheyearcomparedtothesameperiodin2012.)FigureA.1inappendixAgivesconsumptionbylocality.MontgomeryCountyconsumesabout50%,andtheregion’sresidentialsectorabout40%,oftheregion’s2,500tera‐Watt‐hours(TWh).TotalNRVconsumptionhasremainedrelativelyconstantfrom2008‐2013.Thecolderwinterof2010resultedinrecordelectricityconsumptionbecauseofthedominanceofresidentialelectricheatingintheNRV.Themilderheatingseasonsin2011and2012reducedresidentialandtotalconsumption,butthecold2013winterincreasedconsumption,and2013islikelytobeatthe2010record.Annualresidentialconsumptionincreased16%inJanuary‐May2013comparedtothesameperiodin2012.

Whileelectricityconsumptionhasremainedrelativelyconstant,exceptsomevariationwithweather,thecostforelectricityhasnot.Thisisbecauseelectricityrateshaveincreasedsignificantlysince2005.Figure2.2showsexpendituresforAPCOelectricitybysector.(FigureA.2givestheseexpendituresbylocality.)Becauseresidentialratesareconsiderablyhigherthanratesforlargeusers,figures2.2and2.3showthattheresidentialshareofexpendituresisnotproportionaltoconsumption.Whileresidentialelectricityuseincreased16%fromJanuary‐Mayfor2013comparedtothesameperiodin2012,expendituresincreased27%.That’sa$270increaseona$1000winterelectricitybill.APCOresidentialratesincreased35%from2005to2011,andanother14%from2011to2013.

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Figure 2.1: Nearly half of electricity consumption is residential which is fairly constant except for cold winter years due to heavy reliance on electricity for residential heating 

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SinceVTESandREDbuywholesalepowerfromAPCOandsellittotheircustomers,theirratesfollowAPCOratetrendsandareslightlyhigher.Theymarketabout20%ofNRVelectricity.IncludingAPCO,VTESandRED,totalNRVelectricityexpendituresfor2013arelikelytobemorethan$250million.Priorto2005,theregionwasblessedwithrelativelylowenergyprices,especiallyelectricityratesthatwereabouthalfofthenationalaverage.Becauseoftheselowrates,electricitybecamethepreferredresidentialheatingsourceintheregion,whereitisstilltheprimaryheatingfuelformorethan60%ofhouseholds(seefigureA.6).However,theselowratesdidnotattractmuchelectricity‐dependentindustrytotheregion:industryusesonlyabout25%ofNRVelectricity(figure2.1).Butresidentialelectricityrateshavenearlydoubledsince2005toaboutthenationalaveragebecauseofAPCOrateincreasespromptedbyhighergeneratingfuelcostsandmandatedenvironmentalcontrolsatitscoal‐firedpowerplantsoutsideoftheregion.Ratesdroppedslightlyin2011buthavecontinuedtoincreasesince.

Figure 2.2: Although consumption has been relatively constant, cost of electricity has increased significantly due to rising electricity rates 

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NaturalGasNaturalgasissuppliedbyATMOSEnergyindistinctserviceareasincentralcommunitiesofRadford,Blacksburg,Christiansburg,Dublin,Pulaski,andFairlawn(seeAppendixA‐8formapofATMOSserviceareas).NogasserviceisprovidedinFloydandGilescounties(exceptforadedicatedpipelinetotheCelaneseplantinNarrowsinGilesCountywhereColumbiaGasisexpandingthepipelinetoallowCelanesetoconvertfromcoaltonaturalgas).NaturalgastrendsintheNRVaresomewhatdifferentfromelectricityandpetroleumfuels.Liketheseothersources,consumptionlevelshavenotincreasedinthepastseveralyears,asshownbysectorinfigure2.3.

However,unlikeelectricity,industrial,institutionalandotherlargeusersdominateusewithabout65%ofNRVconsumptionin2012;thecommercialsectorusedabout20%andtheresidentialsectoronly13%.Blacksburgconsumptionincreased20%in2012(seefigureA.3consumptionbyservicearea)duetoVirginiaTech’sgreateruseofnaturalgas.Infiscalyear2013(July2012‐June2013)comparedto2012,theuniversityused30%lesscoaland350%morenaturalgasthaninFY2012.TheuniversityisworkingwithATMOStoenlargeitspipelinetotheVTpowerplanttoprovidetheoptionforfurtherconversionfromcoaltogas.Ofcourse,thisconversionfromcoaltonaturalgasnotonlyatVirginiaTech,butalsoattheCelaneseplantinGilesCountyandinAPCO’sfuelmix,hasbeentheresultofthedecliningpriceofnaturalgasrelativetocoal.Naturalgaspriceshavedeclinedsince2008duetoa

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Figure 2.3: More than half of natural gas consumption is by industry and large users while residential use is only 13% and has been relatively constant. 

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20%increaseindomesticproduction.Asaresult,overallexpenditureshavedroppedsignificantly,toabouthalfofwhattheywerein2008,asshowninfigure2.4.

Theprincipalbeneficiariesofthistrendhavebeenlargeindustrialandinstitutionalusers,whichusemorethan60%oftheregion’sconsumption.Manyoftheselargeusershaverecentlyconvertedtoaveryfavorableratecategorythathasfurtherreducedtheircosts.ThatiswhyChristiansburgindustryhadasignificantdropinnaturalgasexpendituresin2012despitestableconsumption,andBlacksburglargeusershadadropincostdespitea20%increaseinconsumption(seefigureA.4expendituresbyservicearea).Householdshavenotbenefitedfromthesetrendsbecausenaturalgasisstillaminorresidentialheatingfuel,providingtheprimaryfuelforonly16%ofNRVhouseholds(aboutthesameasfueloilpluspropane)comparedtoabout50%nationally,whileelectricityistheprimaryheatingfuelfor62%ofhouseholds(seefigureA.6)(comparedto39%nationally).Also,residentialnaturalgaspriceshavenotdroppedtotheextentthatindustrialandinstitutionalusers’priceshave.Residentialrateshavedroppedabout15%between2009and2012,buttheyarefivetimesmoreperthousandcubicfeet(MCF)thanwhatlargeuserspay.Thatiswhyresidentialuserspaid30%oftheregion’snaturalgasbillin2012butusedonly13%oftheconsumption;householdspaidmorethanlargeindustrialandinstitutionalusers,whichused5timesmorenaturalgasthanhouseholds.

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Figure 2.4: Natural gas prices have dropped abruptly, especially for industrial and large users, and total expenditures are less than half than in 2008, despite near constant use. Residential users paid 30% of NRV natural gas cost but used only 13% of its consumption. 

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Figure2.5compares2006‐2012residentialgasconsumptionandexpendituresto2006levelsanddemonstratesthebenefitsoflowerresidentialgasprices.Consumptionin2012wasjust6%above2006,butexpenditureswere38%less.Householdsinmoreurbannaturalgasserviceareaswithnaturalgasspace‐andwater‐heatinghaveseenareductioninheatingcostssince2008,whilethoseoutsideofnaturalgasserviceareaswithelectricity,fueloil,andpropaneheathaveseenadramaticincreaseinheatingcosts.However,U.S.EIAforecastsnaturalgasheatingpricesandexpenditurestoincrease13%from2012‐13forourregioninthe2013‐14heatingseason,andexpenditurestogoup25%ifitis10%colderthanpredicted(U.S.EIA,October2013).

PetroleumFuelsManyprivatesuppliersprovidetransportationfuels,fueloil,andpropanetoNRVconsumers.Petroleumfuelsprovideessentiallyalltransportationenergyaswellasprimaryheatingfor16%ofhouseholds(12%fueloiland4%propane)(seefigureA.6).Whileaggregateelectricityandnaturalgasutilitydataonconsumptionandexpendituresareavailable,dataforthesepetroleumfuelsarenot.However,transportationfuelconsumptioncanbeestimatedindirectlyfromdataonvehiclemilestraveled(VMT)intheregion.Transportationvehiclesmilestraveled(VMT)areusedtoapproximatetransportationenergyusebycombiningcountsofmilestraveledwithestimatedvehiclemilespergallonandfuelpriceinformationtoestimatetransportationenergyexpenditures.Figure2.6givesVMTfortheNRVandmajorjurisdictionsforvehiclecategories1‐5(excludingtractortrailers)anddiscounting50%ofI‐81VMT.Usingnationalandlocaldataonvehicleefficiency,VMTisconvertedtovehiclefueluseinmilliongallons(seefigureA.5).ThemethodologyforthisandotheranalysesinthisstudyisdescribedinAppendixB.

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Figure 2.5 Natural gas consumption was just 6% higher in 2012 compared to 2006, but cost was 38% less because of lower natural gas prices.

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WhileVMTandcorrespondingvehiclefuelusehavebeensurprisinglystableforthepastdecadeintheNRV,vehiclefuelcostshavenot.DespitestableVMTandaveryslightimprovementinaveragevehicleefficiencyinthepastdecade,fuelpriceshavecausedfuelexpenditurestoincreasesignificantly.Figure2.7showstheeffectoffuelpriceonexpenditures.Asshowninfigure2.8,whileNRVVMTincreasedonly2%from2005to2012,fuelcostincreased49%toabout$250million.

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Figure 2.6  Vehicle miles traveled (VMT) have been constant for several years. 

Figure 2.6 Vehicle miles traveled (VMT) have been constant for several years. Figure 2.7  Although VMT have been constant, fuel cost has not due to higher prices 

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Thesehighervehiclefuelpricesaffecthouseholdsdifferentlydependingontheirtransportationneeds.Ruralandlowerincomeresidentsareespeciallyhardhitbecausetheycommutelongerdistances.MorethanhalfofFloyd,Giles,Pulaski,andRadfordworkerscommuteoutoftheirhomecountyforwork.Morethan25%ofworkersearninglessthan$35Kperyearhavetocommutemorethan25milestowork;thoseearninglessthan$15,000peryearcommuteanaverage26milesmoreperdaythanthoseearning$40,000ormore(NRVLIInterimReport,2012).Petroleumproductpriceshavebeenvolatilewithupsanddownsfordecades.Despiteapricedipduringthe2009recession,thesepriceshaveremainedhighin2012‐13,essentiallydoublethepricesof1990‐2002.Thishasoccurreddespiterecentincreasesindomesticoilproduction,becauseunlikenaturalgasprices,petroleumpricesaresetbythegrowingglobaloilmarketnotjustbydomesticsupply.EnergyPriceTrendsandProjectionsFueloilandpropanepriceshavefollowedvehiclefuelprices.Figure2.9plotsstatewideaverageenergypricesfrom1990to2012.Onaperenergyunitbasis(permillionBtu),electricityhashistoricallybeenthemostexpensivesource,morethantwicethepriceofotherfuelsuntilabout2000.Thelastdecadehasseenasignificantincreaseinthepriceofpetroleumfuelssotheyareapproachingthecostofelectricityevenaselectricitypricehasitselfincreased.Ontheotherhand,thepriceofnaturalgasfollowedthegrowthtrenduntil2008,buthasdroppedsignificantlyby2012tolessthanhalfthecostofothersources.Figure2.10showsthesestatewidepricetrendssince2005comparedto2005levelsandtotherateofinflation.

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Figure 2.8  VMT have increased 2% from 2005 to 2012, while transportation fuel cost has increased 49% 

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Figure 2.9 Historic energy rates in Virginia, 1990‐2012. All prices have increased especially petroleum fuels, although natural gas prices have decreased since 2008. 

Figure 2.10 Since 2005, petroleum fuel prices have increased 55‐76% through 2012, and natural gas prices have decreased 17%, all compared to an inflation increase of 18%. 

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Futureenergypricesareexpectedtoincrease.Marketforcesandincreasedenvironmentalprotectionwillcausefossilenergypricestoincreaseinthefuture.Figure2.11givesU.S.EIAlong‐termprojectionsforthemid‐Atlanticregion,withoutadditionalenvironmentalcontrols.Allsourcesareprojectedtoincreasebymorethan2%peryear,includingnaturalgas,whichisexpectedtocost13%moreinwinter2013‐14thanin2012‐13.Withadditionalenvironmentalcontrols,theseincreasescouldbeconsiderablyhigher.Figure2.12showsthatextendingthehistoricgrowthofAPCOelectricitypricessince2002to2021farexceedstheEIAprojections.

2‐18‐2013

Gasoline, $67

Natl Gas, $31

Electricity, $60

Fuel Oil, $64

Propane, $55

$0

$10

$20

$30

$40

$50

$60

$70

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

EIA Residen al Energy Price Projec ons, 2010‐2040 Mid‐Atlan c States, $ per 106 Btu

Gasoline: +2.6%/yr

Fuel Oil: +2.9%/yr

Electricity: +2.1%/yr

Propane: +2.1%/yr

Natural Gas: +2.6%/yr

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Figure 2.11 All Residential energy prices are expected to rise by >2% through 2040 

Figure 2.12 APCO price increases from 2002‐12 far exceed EIA projected increases 

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CoalCoalusedtobeminedinMontgomeryCountyandhistoricallyservedasaresidentialandindustrialfuel.ItisstillthemainsourceofelectricityintheregionfromAPCO’sgeneratingsystem,althoughthecoalportionofAPCO’sfuelmixhasdroppedduringthepastfiveyearsfrom89%to72%andisexpectedtocontinuetodecline.CurrentlythedirectuseofcoalintheNRVislimitedtosomelargeindustriesandVirginiaTech’ssteamplant.Mostindustriesusenaturalgas,andtheregion’slargestindustrialcoaluser,CelaneseinGilesCounty,isconvertingfromcoaltonaturalgasthroughanewColumbianaturalgaspipeline.VirginiaTechisalsoreplacingcoalwithnaturalgasandisworkingwithATMOStoexpanditsnaturalgaspipelinetoprovidemorefuelflexibilityinitssteam/powerplant.EnvironmentalImpactsofEnergyUseAllenergysourcescreatesomeimpactontheenvironmentandcommunities,butthoseimpactsvary.Fossilfuelenergycreatesimpactsontheenvironmentinthreeways:

Coal,oil,andnaturalgasextraction,processing,andtransportallposerisksandimpactstoair,water,land,andthecommunitiesthatsupportthem; Fossilfuelcombustionisthemajorsourceofconventionalairpollution;and Carbondioxide(CO2)emissionsfromfossilfuelcombustionarethemajorsourceofgreenhousegas(GHG)emissions,themaincauseofglobalwarmingandclimatechange.TheNewRiverValley’sdependenceoncoal‐firedelectricityandpetroleumfuelsnotonlycontributestotheseimpacts,butalsomakestheregionvulnerabletopotentialadditionalcostsassociatedwiththeircontrolorremediation.Forexample,amaincauseofAPCO’srateincreasesiscostrecoveryfromratepayersfor$2billionspentforcontrolofsulfuremissionsatitscoal‐burningpowerplantssince2005.Furthercostsmaybenecessaryfornewmercuryemissioncontrolsandpossiblecarbondioxidecontrols.Ausefuloverallindicatoroftheenvironmentalimpactsofaregion’senergyuseisCO2emissionspercapita.Whilethisspecificallyaddressesclimatechangeimpacts,italsoreflectsassociatedimpactsofhigherimpactingfossilfuels.TheNRVenergy‐relatedCO2/capitafor2012is17.5metrictons/person/year(mt/p‐y).ThisisbasedonestimatesofNRVfossilfuelconsumptionforutilityelectricity,utilitynaturalgas,transportationfuelsbasedonVMT,andresidentialfueloilandpropane,estimatedfromproportionofprimaryheatingfuel.Thisfiguredoesnotincludedirectuseofcoalandfueloilbyindustryandnon‐residentialusers.Thisrateisdrivenprimarilybyelectricityandtheratehasdeclinedfrom18.5mt/p‐yfrom2010to2012becauseofthereductionofcoalinAPCO’sfuelmix.

Table 2.1  2010 2012

U.S. mt CO2/p‐y  18.2  17.1 Virginia mt CO2/p‐y 13.8  na NRV mt CO2/p‐y  18.5  17.5 This17.5mt/c‐yestimateofNRVCO2emissions/capitacomparestoU.S.EIA’s2010estimateforVirginiaof13.8mt/p‐y,andforthenationof18.2mt/p‐y.ThereasonNRV’srateishigherthanVirginia’sisitshigherrelianceoncoal‐generatedelectricity.TheprimarysourceoftheseGHGiselectricityconsumptionbecauseofAPCO’srelianceoncoal‐firedgeneration.ThepercentageofcoalonAPCO’sfuelmixisdroppingnotonlybecauseofenvironmentalcontrolcosts,but

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primarilybecausethecostofcoalhasbeenrisingandthecostofnaturalgashasbeendropping.Thecostofutilitycoalrose50%between2007and2011,whilethecostofutilitynaturalgasdroppedby60%between2008and2012.APCOplanstocontinuetoreduceitsfuelmixofcoalandtoincreasenaturalgas.ThiswillfurtherreduceNRVCO2emissionsrelatedtoelectricity.

RenewableEnergySourcesRenewablesourcesprovideasmallportionofNRVenergy.Nearlyallmarketedgasolinecontains10%bioethanol.Woodfuelissignificantresidentialfuel;6%ofNRVhouseholdsindicatewoodistheirprimaryheatingsource,andmanymoreusewoodasasupplementaryfuel.Figure2.13showstheconsiderablegrowthofNRVsolarphotovoltaiccapacityinthepasttenyears.AsofJanuary2013,NRVhas450kWofsolarphotovoltaic(PV)capacityand33kWofwindpowercapacity.TheNRVhas5.5%oftheVirginia’sPVcapacitywithjust2.2%ofthestate’spopulation.

Thisgrowthwasspurredbythreefactors:(1)theavailabilityofastaterebatein2009‐2011of$2/W,(2)theabilityofsmallsystemsinstalledbeforeJanuary2012tosellRenewableEnergyCreditstoDistrictofColumbiautilities,and(3)thedecliningpriceofPVsystems.After2011thestaterebatefundingexpiredandDCRECswerenolongeravailablefornewsystems.Asaresult,thepaceofsmallsolarinstallationslowedconsiderablyin2012exceptforthe102kWsysteminstalledatVirginiaTech.Smallsolardevelopmenthasremainedslowin2013despiterecordlowpricesofPVsystems.TheNRVhasaverygoodsolarresourcewithanannualaverage4.8kWh/m2‐dayonasouth‐facingcollectoratatiltof22‐52o,aboutaveragefortheU.S.(whichhasarangeof3.7(Seattle)to6.5(Tucson)kWh/m2‐day).Germany,whichhasthelargestsolarcapacityofanycountryintheworld,hasanaveragesolarresourceof3.15kWh/m2‐day.Ontheotherhand,theregion’swindenergyresourceismarginalasshowninFigures2.14,2.15,andA‐9.Thereareonly33kWofwindcapacityintheNRV,2/3inPulaskiand1/3inGiles.GoodwindsitesinFloydandGilescountiesareconstrainedbyproximitytotheBlueRidgeParkwayandAppalachianTrail.In2009‐10,apotentialwindprojectwasproposedforPulaskiCounty’sBSAPowhatanCamp,whichpromptedwindordinancesinbothPulaskiandMontgomery.Smallareasofpotentialcommercial‐scaleridgetopsitesexistinMontgomeryCountyonPoorandParisMountainsandperhapsatthetopofBlacksburg’smunicipalgolfcourse(Figure2.15).

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Figure 2.13 High 2005‐12 growth of solar capacity in the NRV has not sustained past 2012. 

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Figure 2.14 NRV Wind Power Potential A.  Residential scale 30‐meter tower. Best sites with 5‐5.5 meters/sec (m/s) average wind speed are rated “poor”. 

B. Commercial scale 50‐meter tower. Best sites are on a few ridge tops with 6.4‐8.0 m/s rated “fair” to “excellent”. Most promising sites are SE Montgomery, NE Floyd, and NE Giles. 

Figure 2.15 Montgomery County Wind PotentialPower density and m/s maps show  promising sites in Poor Mountain  and Paris Mountain (Source: Hise, 2013) 

A B

Wind power Wind speed  Wind speed    W/m2              m/s          mph   0‐200    0 ‐ 5.6       0 ‐ 12.5   200‐300    5.6 – 6.4   12.5 – 14.3 300‐400   6.4 – 7.0   14.3 – 15.7 400‐500    7.0 – 7.5   15.7 – 16.8 500‐600      7.5 – 8.0   16.8 – 17.9

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EnergyEfficiencyImprovementsTheNRVhasastockofolder,lessefficientresidentialbuildingsandbecauseofhistoricallylowenergyprices,especiallyforelectricity,therehasnotbeenanincentiveforinvestinginefficiencyimprovementsinallsectorsuntilratesbegantorisein2005.Theefficiencyprogramwiththelongestexperienceisthelow‐incomeWeatherizationAssistanceProgram(WAP)thatinstallsefficiencymeasuresinlow‐incomehouseholdsatnocosttothehomeowner.Thefederally‐fundedWAPbeganinthelate1970sandsince2000ithasretrofittednearly5,000NRVresidentialunits.Figure2.16showsthatthepaceofWAPretrofitintheNRVwasabout300unitsperyearexceptwhentheprogrambudgetincreasedinFY2001‐02andespeciallyFY2009‐10whensomefederalAmericanReinvestmentandRecoveryActstimulusfundsweredirectedtotheprogram.Federalfundinghassincedeclinedandsohasthenumberofunitsretrofittedeachyear.Onlyasmallportionoftheeligiblelow‐incomehouseholdsintheNRVhasbeenweatherized.

TheWAPprogramisrunbytheEnergySolutionsdivisionofCommunityHousingPartnersinChristiansburg.CHPalsomanagedtheCommunityAllianceforEnergyEfficiency(CAFE2),whichfacilitatedresidentialenergyretrofitformoderate‐incomehomeownersnoteligibleforWAP,andmanagestheEnergySolutionsResearch&TrainingCenter(formerlyNRCERT),recipientofthenational2013State&LocalEnergyReportResidentialEfficiencyAwardinWeatherization.CAFE2wasoneofthreealliancesinVirginiaestablishedin2010togiveinformation,outreachandfinancingincentivesforresidentialretrofitservicesprovidedbyparticipatinglocalcontractors.ItisbeingreplacedbyHomePerformancewithEnergyStarinfall2013.NRVbuildingcontractorsalsoprovidenewgreenbuildingconstruction.Thisarrayofresidentialenergyretrofit,construction,andtrainingprogramspositionstheNRVasastate‐wideleaderinbuildingenergyefficiency.OtherNRVentitieshaveinvestedinenergyefficiencyimprovementsincludinglocalgovernmentsandschools,industry,commercialproperties,churches,andothers.SomearehighlightedinthenextsectionontheplayersintheNRVenergypicture.

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Figure 2.16 WAP housing units weatherized rises and falls with the federal WAP budget  

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3.PrincipalPlayersinthePresentandFutureNRVEnergyPictureTheNRVenergypictureisnotjustaboutenergyandcostdata.Itisalsoaboutpeople,businesses,localgovernments,institutions,andorganizations,inotherwords,allthosewhoplayaroleinhowweuseenergyandhowwecanmovetowardafutureofcleanandaffordableenergy.Thissectionintroducestheseplayersandsomeoftheircurrentactivitiesandaccomplishments.Someplayimportantrolesinthisplan’simplementingstrategies,andthesearediscussedinsection6.A. UtilitiesItisobviousfromthedatapresentedintheprevioussectionthatelectricityandnaturalgasutilitiesarekeyplayersintheNRVenergypicture.Investor‐ownedutilitiesAPCOandATMOS,aswellasmunicipalutilitiesVirginiaTechElectricService(VTES)andRadfordElectricDepartment(RED),areconventionalsupply‐sideutilitiesprovidingelectricityandnaturalgastotheircustomers.Whatroledotheyplayinenergyservicesbeyondjustsellingenergy?

EnergyEfficiency.Neitherutilitycurrentlyprovidesdemand‐sideservicestocustomersforenergyefficiencyimprovementsorloadmanagement.MunicipalutilitiesVTESandREDalsodonotofferefficiencyprograms.However,theseutilitiescouldplayanimportantroleinprovidingenergyefficiencyservicessimilartothoseofferedbyotherutilitiesinVirginiaandotherstates.Forexample,beginningin2012,DominionVirginiaPower,thestate’slargestelectricutility,hasofferedanenergyefficiencyrebateprogramforresidentialandcommercialenergyaudits,heatpumpupgrades,andducttesting/sealing.ColumbiaGasofVirginia,servescentralVirginia,offersrebatesonefficientgasappliances/furnacesandbuildingefficiencyimprovementsforresidentialandcommercialcustomers.ThemunicipalCityofDanvilleUtilitiesoffersarangeofefficiencyrebatesforresidentialandbusinesscustomers(DSIRE,2013).APCOiscurrentlydevelopinganefficiencyprogramtobefiledwiththeStateCorporationCommissionin2014.TheutilityalreadyoffersarebateprograminitsWestVirginiaserviceterritory,whereitoffersfree“HomeSMARTEnergyAssessment”auditsandrebatesforairinfiltrationandductsealing,insulation,andheatpumpmaintenanceandupgradesforresidences,aswellasotherrebatesforcommercialandindustrialcustomers(APCO,2013).RenewableEnergy.APCO,VTES,andREDprovideinterconnectionandnetmeteringforon‐siterenewablesolarandwindpower,whichallowssystemownerstofeedexcesspowerproductiontothegrid,runningtheirelectricmeterbackwards.Thisessentiallygivessystemownersafinancialreturnequivalenttotheirretailratesforallpowerproduced.Allthreeutilitiesofferthisserviceatnochange,includinginstallationofatwo‐wayelectricmeter.Virginia,oneof43statesthatmandatesinterconnectionandnetmetering,permitsupto20kWforresidentialand500kWfornon‐residentialsystems.

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B. LargeEnergyUsersandEmployersSomelargeenergyusersandemployersintheregionhavebeenactiveinpursuingcleanenergyinitiatives,andtheyprovideusefulmodelsforotherinstitutional,commercial,andindustrialenergyusers. VolvoTrucksplantinDublin(figure3.1),PulaskiCounty’slargestemployer,isthelargestVolvotruckplantintheworldandisnationallyrecognizedforitsinnovativecleanenergyinitiatives.In2012,itwasthefirstU.S.facilitytobecertifiedtotheISO50001standardsunderapilotprogramsupportedbytheU.S.DepartmentofEnergyandwasalsocertifiedasaSuperiorEnergyPerformance(SEP)facility.ISO50001andSEPare,respectively,thetopinternationalstandardandtopU.S.certificationprogramfordrivingcontinuousimprovementsinenergyefficiency(Volvo,PRNewswire,2012).VolvoTrucksparentcompany,Volvo,hasaloftygoaltomakeallofitsmanufacturingfacilitiescarbon‐neutralbyimprovingenergyefficiencyandusingrenewableenergy.VolvoTrucksjoinedU.S.DOE’sIndustrialTechnologiesProgram’sSaveEnergyNowinitiativein2009,committingtheplanttoreduceenergyintensity(i.e.,energyperunitproduct)by2.5%peryearfor10years.In2011,theplantsucceededinreducingenergyconsumptionby25%inoneyear.TheplantinstalledsomesolarPVpanelsanda10‐kWwindgenerator,butitsgreatestsuccesscameinengagingemployeestocomeupwithideastosaveenergy.TheDublinplantaimstobecomethefirstcarbon‐neutralautomotiveplantintheU.S.(Volvo,U.S.DOE,2011;Volvo,RoanokeTimes,10/13/13).

CelaneseCorporationalsohasstrongenergyefficiencyandsustainabilitygoalstoreduceenergyintensityandGHGemissionsboth20%by2015.Aspartofthiscommitmentandtoreducelongtermcosts,itsNarrowsplant(figure3.2),GilesCounty’slargestemployer,isinvesting$150millioninaprojecttoreplaceitscoal‐firedboilerswithnaturalgas‐firedboilers,thusreducingtheplant’scarbonfootprint.TheprojectinvolvesexpandingaColumbiaNaturalGaspipelinespurtoservetheplant(Celanese,2012);Celanese,RoanokeTimes,8/28/13)

Figure3.1VolvoTrucksPlantinPulaskiCo.aimstobethe1st carbonneutralvehicleplantintheU.S.

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Wal‐MartisoneofthelargestemployersintheregionwithfourstoresinChristiansburg,Pearisburg,FairlawnandDublin.Althoughspecificenergyimprovementsatthesestoresisnotknown,theWal‐MartCorporationhasmadeoneofthemostsignificantprivatesectorcommitmentstocleanenergyintheU.S.In2005,Walmartmadeacommitmenttobecome100%poweredbyrenewableenergy.Sincethattime,Wal‐Marthasbecomethenation’slargeston‐siterenewableenergyproducer.Itnowhas180renewableenergyprojectsincluding150solarrooftopinstallationsand26fuelcellsystems.TheyhavemadesignificantimprovementsinbuildingefficiencythroughLEDlightingandsecondary‐looprefrigeration(refrigerationaccountsfor11%oftheirtotalGHGemissions,morethantheirentiretruckfleet).InApril2013,Wal‐MartPresidentandCEOannouncedplanstoreducekWh/ft2initsstoresby20%by2020andproduceorprocure7billionkWhperyearofrenewablepowerby2020,6timesthe2010level.Thetwoinitiativesareexpectedtosavethecompany$1billionannuallyinenergysavings.

VirginiaTech,theregion’slargestemployer,hasanextensiveenergyprogram,operatingitsownelectricutility,whichserveshalfofBlacksburginadditiontocampus,acombinedheatandpower(CHP)anddistrictheatingsystemforitssprawlingcampus,andtheregion’slargestsolarPVsystem(figure3.3).Withafull‐timeenergymanagerandfacilitiesstaff,theuniversityhasaccessedstatefinancingtofundalargeenergyefficiencyprogramonfivemajorbuildingsunderanenergyservicecompany(ESCO)contractthatguaranteesresultingenergysavings.Foreconomicandsustainabilityreasons,theuniversityisreducingcoaluseinitsCHPplantbyexperimentingwithco‐firingbiomassfuelandreplacingcoalwithcleanernaturalgas.

Figure3.2CelanesePlantinGilesCo.isinvesting$150milliontoswitchfromcoaltonaturalgas

Figure3.3VirginiaTech’s102kWsolarPVsystem,installedin2012,isthelargestPVsystemintheNRV

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Thecampus’sAlternativeTransportationProgram,vanpoolinginitiatives,anditsstudent‐feefundingofBlacksburgTransit,providecriticalmobilityoptionsforitscommutingemployeesandstudents.Thesecleanenergyinitiativesarepartoftheuniversity’sClimateActionCommitmentandSustainabilityPlanthatsetsuniversitypolicyforan80%reductionofGHGemissionsbelow1990levelby2050.TheVirginiaTechenergyandsustainabilityprogramhaswonnumerousawards,includingtheGovernor’sEnvironmentalExcellenceGoldAwardin2011and2013(VT‐OES,2013).C. EducationandTraining

Inaddition,VirginiaTechisaResearchIUniversity,ranking41stinthenationandhighestinVirginiainresearchfunding.Oneofitsprincipalareasofexpertiseisenergy:ithasafull‐timeDirectorofEnergyInitiativesintheResearchDivision,theVirginiaCenterforCoalandEnergyResearch(VCCER,2013),theCenterforPowerElectronicsSystems,asustainableenergythrustareaintheInstituteforCriticalTechnology&AppliedScience(ICTAS,2013),andresearchprogramsinbiofuels,fuelcells,renewableenergy,nuclearengineering,energyefficiencyandmanagement,buildingscienceanddesign,andenergyplanningandpolicy.Thisresearchprovidesafoundationofexpertiseintheregionandthesourceofentrepreneurialstart‐upcompanies. Regardingtraining,VirginiaTechundergraduateandgraduateprogramsinengineering,agriculture,naturalresources,thephysicalandsocialsciences,business,economicdevelopment,architecture,andurbanplanningproduceaneducatedworkforce,manywhowishtoremainintheregionandcontributetoadvancingthelocaleconomy. RadfordUniversityisalsoalargestateuniversityproducinganeducatedworkforceinmanyfieldsrelatedtodevelopingacleanenergysystem. TheNewRiverCommunityCollegeinDublinhasexcellentcertificationandtrainingprogramsspecificallyinalternativeenergysysteminstallationincludingsolarthermalandelectricandwindsystems(NRCC,2013). TheEnergySolutionsResearchandTrainingCenter(formerlyNRCERT)isanaward‐winningtrainingcenterforresidentialenergyretrofitandhomeperformancetesting.ItispartoftheEnergySolutionsDivisionofthenon‐profitCommunityHousingPartnersinChristiansburg.TheCenterwasawardedthenational2013ResidentialEnergyEfficiencyawardforWeatherizationbytheStateandLocalEnergyReport(CHPESTraining,2013).

D. LocalGovernmentsLocalgovernmentsarecriticalplayersintheevolutiontocleanenergyintheNRV.Theyaremajoremployers.Theyareenergyconsumersastheyoperateandmaintainofficebuildings,schools,publicworks,roads,andfleets.Theydeterminetheuseofthelandthroughinfrastructureandregulation.Theyoperatetransitsystems.Theyserveasfirstadopterstoshowbyexamplethebenefitsofcleanenergy.Theyinfluenceculturalchangethrough

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demonstration,education,andleadership.Theyprovideincentivesaswellasbarrierstochange.Withthehelpoftheirconstituents,theyplanforthefutureoftheircommunities.Severalofthelocalgovernmentsintheregionhaveaddressedenergytovaryingdegreesintheiroperationsandcomprehensiveplans.CompPlanlanguagefromFloydCounty,RadfordandChristiansburg’splansaregiveninBox3.1.In2010,PulaskiCountyadoptedawindenergyordinancedevelopedbytheNRVPlanningDistrictCommission(Utt,2012;SouthwestTimes2010).MontgomeryCountyhaszoningprovisionsforsmallwindenergysystems.Box3.1:AttentiontoEnergyinLocalComprehensivePlansintheNRV

Floyd County Comprehensive Plan: Asnationalleadersdebateenergypolicy,privatecitizensandbusinessesarestrugglingtoaffordenergytoheatandcooltheirhomesandtogettoandfromworkandschool.Thereispracticalinterestnowfrommanyinfindingalternativefuelsupplies,suchassolar,wind,geothermalandbiofuelsforhomesandbusinesses.Therearealsoincreasedopportunitiesforenergysavingsthroughenergyefficientprogramsandinvestments.TheCountyseekstoenableandencourageallsafeandreasonablesmall‐scalepowergenerationinthecommunity.Furthermore,theCountywillcontinuetoencouragefederal‐andstate‐fundedprogramsforweatherizationandenergy‐efficiencytoservemoreeligiblehouseholdsandfacilitiesinFloydCounty.RadfordComprehensivePlan:Goal1‐2.Promoteregionalcoordinationandlong‐rangeplanningforpublicutilityfacilitiesandservices;StrategyD.CoordinateandpromotetheregionalutilityservicesthatareinthebestinterestoftheCity;engagePulaskiCountyandMontgomeryCountyinregionalutilitymattersasneeded.StrategyE.TheCityshouldbeonthecuttingedgeoftechnologyforenergyindependenceandsustainabilitybyutilizingsolar,windandotherrenewableenergysources.ChristiansburgComprehensivePlan:EnsureaccesstonaturalgasthroughoutTown.Fosterthedevelopmentofalternativeenergysourcesandprovision.EnsuretheTownCodeallowsforthesafeuseofalternativeenergysources.

BlacksburghasgiventhemostattentiontoitsenergyfutureandprovidesamodelforotherNRVlocalities.Mostnoteworthyarethefollowingactions.DescribedmorefullyontheTown’sEnvironmentalSustainabilitywebsite: PublicWorksDepartment’sEnvironmentalManagementProgram Energyperformancecontractingforenergyefficientoperations(2003) LEEDgreenbuildingstandardfornewandrenovatedpublicbuildings(2007), Theregion’sfirstLEEDPlatinumbuilding,theBlacksburgMotorCompany, TheMayor’sTaskForceonClimateProtectionandSustainability(2007) Theregion’sonlylocalEnergy&ClimateActionPlan(2010‐13) TownCouncil’sadoptionofan80%reductioninGHGemissionsfrom1990levelsby2050(2010)Thisfoundationofactivityculminatedinthe2012BlacksburgComprehensivePlanupdate,whichgivessignificantattentiontoenergyasitlookstotheTownin2046.ExcerptsrelatedtoenergyfromtheplanaregiveninBox3.2.

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Box3.2Energy‐RelatedExcerptsfromthe2012BlacksburgComprehensivePlan Advancementofthecommunityasanenergyefficientmodelwillnotonlylessenenergyconsumptionlocally,butwillalsoencouragesurroundingcommunitiestoconserve,whichwillleadtoareductionofmigratoryairpollutants. TransportationaccountsformostofthetotalenduseenergyconsumedbytheTownofBlacksburg.TheTowncanimproveitstransportationenergyefficiencyandreducepollutantemissionswithitstransitsystem,areasonablycompactdevelopmentpattern,andbyexpandingthegreenway,bikeway,andwalkwaysystems.Someofthelandusepatternsandtechniquescanincludeplantingtreesandotherlandscapingmaterials,orientingbuildingstomaximizesolarenergyefficiency,andreducingtripgenerationbyredevelopinginfillsiteswithamixofusesorclusteringdevelopment. Energyconsumedbybuildings,bothresidentialandcommercial,accountsforanothermainportionofenergyuseintheTown.Therearemultiplewaystoimprovetheefficiencyofbothnewandexistingresidentialandcommercialbuildingstoprovideanopportunityforincreasedenergyefficiency.Virginia’sUniformStatewideBuildingCoderequiresnewandrenovatedbuildingstobemoreenergyefficient. AmericanElectricPowerCompanyiscurrentlyexperimentingwithdemandsidemanagement(DSM)programs,designedtoreducecustomers'energyusethroughtheuseofefficiency‐improvingdevices.VirginiaTechElectricServicedoesnotcurrentlyutilizeDSM.TheTownalsopartnerswiththeCommunityAllianceforEnergyEfficiency(cafe2),anon‐profitregionalenergyalliancethatfocusesonresidentialenergyefficiency. Forpower,theTowncurrentlyreliesontraditionalenergysourcesfromalimitednumberofenergysuppliers.ToachievetheTown’ssustainabilitygoals,alternativeenergysourcesandsuppliersareneededanddesired.

Energy‐RelatedStrategies:EN.30.Finalize,adoptandimplementtheClimateActionPlanthatemphasizesloweringenergyuse,reducinggreenhousegasemissions,andimprovingairquality.EN.32.Setanexamplefortheprivatesectorbyusinglow‐emissions,alternatively‐fueledvehiclesintheTown’smunicipalfleetandBlacksburgTransitandbyencouragingfuel‐efficientoperationpracticesandincentives.EN.33.Supportlocalemployersandcitizensinestablishingandreachingvehicletravelreductiongoalstoreduceairpollution.•Considertelecommutingandflex‐timepolicies•Considercar‐poolingandpublictransitincentives•Increaseaccesstoservicesonline•EncourageVirginiaTechtolimitandreducevehiculartrafficto/from/on‐campus•ConsidervehicletravelcostsandimpactswhenmakinghousingchoicesEN.36.Limitthenegativeeffectsofairpollutionfrompowerproducers.•WorkwithVirginiaTechtoidentifylesspollutingalternativestotheoperationofthein‐Town,coal‐firedboilersforpowerproduction•EncourageVirginiaTechElectricService(VTES)andAmericanElectricPower(AEP)toimplementDemandSideManagementprogramsinBlacksburg•EncourageVTESandAEPtofacilitatecitizenandlocalbusinessparticipationinpowergenerationthroughsmallscalewindandsolarfacilities•EncourageAEPtopurchaseordevelopwind,solar,andhydrogeneratedpoweraspartofthelocalprovisionofpower•EncourageAEPtoimplementsmartgridtechnology•EncourageAEPtoimplementtime‐of‐dayelectricitypricingEN.37.AmendtheZoningOrdinancetopromotewindandsolarpowerwhereviableEN.38.Establishprogramsandincentivesinpartnershipwiththeregionalenergyalliance,CommunityAllianceforEnergyEfficiency(cafe2),toreduceenergyuseinsingle‐familyhomes,includingtheuseofrenewableenergyEN.39.Establishprogramsandincentivestoreduceenergyuseinmulti‐familyhousingunits

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ThepublicschoolsystemsintheNewRiverValleyprovideasignificantopportunity.Newschoolsarebuilttomodernenergycodes.Butthemanyolderbuildingsarenotand,combinedwiththeschoolbusfleet,theyprovideanopportunityforefficiencyupgradesandcostreduction.Someofthecountyschoolsystemshaveenergymanagers.Energyimprovementsandrooftopsolarinstallationscouldenhancetheeducationalexperienceofstudentsattheschools.E. CleanEnergyFirmsThiscategoryincludesthemanyarchitectsanddesigners,buildingcontractors,HVACcontractors,buildingenergyretrofitcontractors,solarsysteminstallers,andentrepreneurialfirmsdealingwithenergy.Theregionisblessedwithmanyexistingfirmspoisedtogrowtheirbusinessesasthecleanenergymarketexpands.SomeexamplesofthesefirmsaregiveninBox3.3,whichisbynomeansexhaustive(seeReferencesforweblinkstothesefirms).

Box3.3SelectedCleanEnergyRelatedBusinessesintheNRVGreenBuildingArchitectsandContractorsColleyArchitectsGreenValleyBuildersShelterAlternativesCommunityHousingPartners(CHP)BuildingEnergyRetrofitEnergySolutions,CHPEnergyCheck(ShelterAlternatives)BetterBuildingWorksSolarInstallersBaselineSolarDirectConnectSolarSolarConnexionEntrepreneurialActivityVTKnowledgeWorksPowerHubSystems

F. Non‐profitOrganizationsSeveralnon‐profitorganizationsfostercleanenergyintheNewRiverValley,LeadingthelistisCommunityHousingPartners,mentionedabove.CHPEnergySolutionshaslongprovidedlow‐incomeweatherizationservicesandisaleadingWAPproviderinthestate.CHPalsooperatesthepreviouslymentionedEnergySolutionsResearchandTrainingCenter.Inaddition,from2010to2013,CHPmanagedtheCommunityAllianceforEnergyEfficiency(CAFE2),whichofferedresidentialretrofitservicesthroughanumberofretrofitcontractorswithincentivesprovidedbyU.S.DOE,theTownofBlacksburg,andtheCityof

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Roanoke.Withtheexpirationoftheseincentivefunds,CHPisenteringintoapartnershipwiththeLocalEnergyAllianceProgram(LEAP)ofCharlottesvilletoofferHomePerformancewithEnergyStarprotocolandcredentialsforresidentialretrofitintheregion.Theservicewilluseretrofitlocalcontractorsandincludelow‐interestfinancing.CHPalsomanagesaffordablehousingdesign,development,andpropertymanagementinitsserviceareasintheNRVandnorthernVirginia.Box3.4listsrelevantCHPprogramsandservices.Box3.4CommunityHousingPartnersEnergyServicesWeatherizationProgramEnergySolutionsResearchandTrainingCenterCAFE2ResidentialRetrofitProgram(2010‐2013)HomePerformanceRetrofitwithEnergyStar(2013‐)CREATESGreenJobsTraining(2009‐2012)HousingDevelopmentArchitecturalDesignHousingManagementTheAssociationofEnergyConservationProfessionals,basedinFloyd,isanon‐profitenergyeducationandadvocacyorganizationforlow‐incomeenergyusers,energyconservationandrenewableenergyprograms,andtheadvancementofgreenbuildingprinciples.AECPdevelopedtheGreenLivingandEnergyExpoinRoanoke,nowinits14thyear.

G. CommunityOrganizationsSeveralcommunityorganizationshavebeenactiveinpromotingenvironmentalsustainabilityandcleanenergysolutions.ThemostactiveareSustainFloydandSustainableBlacksburg.SustainFloydaimstoaddressglobalissuesatthelocallevelandisinvolvedinawiderangeofactivitiesrelatingtoenergy,food,artsandeducation.ItsponsoredtheFloydCountyEnergyandEmissionsStudythatgaveabaselineofenergyuseandcarbonemissionsforthecounty.SustainableBlacksburgpromoteslocalenvironmentalstewardshipandaimstoenhancetheregion’slivabilitybyreducingitsimpactonthelocalandglobalenvironment.SustainableBlacksburgpartnerswithVirginiaTechandtheTownofBlacksburginthefallCelebrateSustainabilityeventofeducationalprograms.

SummaryandImplicationsTheNRVhasasolidfoundationoflocalgovernments,largebusinesses,researchandeducationalinstitutions,trainingprograms,andenergyservicefirmscommittedtoadvancingcleanenergyintheregion.However,effectivedevelopmentofcleanenergyintheNRVrequiresgreaterinvolvementofinvestor‐ownedandmunicipalutilitiesinenablingandpromotingefficiencyandrenewableenergyandfinancialinstitutionstoprovidefinancingproductstopromoteinvestmentincleanenergyprojects.

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4.StrategicLessonsfromtheNRVEnergyProfileTheNRVenergyprofileprovidesanumberoflessonsthataffectcurrentresidentsandthefutureeconomyoftheNewRiverValley.TheselessonsshouldbeconsideredintheobjectivesandstrategiesoftheRegionalEnergyPlan. Energyexpenditurestotalmorethan$500millionfortheNRV,anincreaseofmore

than50%since2005.Thisdramaticincreaseincostisnottheresultofincreasedconsumption,whichhasbeenrelativelyconstantforthepast5‐10years.Significantincreasesinthepriceofelectricityandpetroleumfuelshavedrivenupthecostofenergy.About95%ofthe$½billioncostsareequallysplitbetweenelectricityandpetroleumfuels,andabout5%isfornaturalgas.Whileelectricityandpetroleumfuelpriceshavesurged,naturalgaspriceshavedroppeddramaticallysince2008. Energypricesareexpectedtoincrease.Marketforcesandenvironmentalprotectionwilllikelycausecoal‐andpetroleum‐basedenergypricestoincreaseinthefuture,makingthecurrentriseinenergycostsevenworseincomingyears.Since2005Virginiaenergyprices,withtheexceptionofnaturalgas,haveincreasedsignificantly:petroleumproductpricesshotup55‐76%,despiteadropduringthe2009recession;statewideelectricitypriceswentup41%andAPCOelectricitypricesincreasedevenmore. TheU.S.EnergyInformationAdministration(EIA)projectsthatallenergypricesincludingnaturalgas,willincreasebymorethan2%peryearthrough2040forthemid‐Atlanticregion,evenwithoutadditionalenvironmentalcontrols(U.S.EIA,2013).Withadditionalenvironmentalcontrols,theseincreasescouldbeconsiderablyhigher.From2002to2012,APCOelectricitypriceshavegoneupmorethan6%peryear,farmorethantheEIAprojectionofmid‐Atlanticpricesto2021of2.1%peryear. Ruralandlow‐incomeresidentsaremorevulnerabletohighenergyprices.Low‐incomeresidentsareespeciallyvulnerable.Figure4.1givesresultsofanationalstudyofpercentofhouseholdincomespentonhouseholdandtransportationenergycosts.Thisimpactvariesconsiderablybyincomelevel.In2013,itisexpectedthatverylow‐incomehouseholds(<$10,000peryear)mustpay¾ofincomeonenergy,almosthalfofwhichisforresidentialheatingandelectricity,therestontransportationfuels.In2013,abouthalfofU.S.householdshadincomeof<$50,000andonaveragespent20%ofincomeonenergy.Forallhouseholdswithlessthan$30,000income,27%ofincomewillbespentonenergyin2013.Thisisupfrom22%in2005and16%in2001. IntheNRV,ruralhouseholdsaremorevulnerabletohigh‐energypricesthanurbanhouseholds.Theyaremoredependentoncostlyelectricity,fueloil,andpropaneforheating,becausetheyareoutsideofnaturalgasserviceareas;thustheydonotbenefitfromlowernaturalgasprices.Theyhavelongercommutingdistances,moreVMT,andhighervehiclefuelcosts.Olderruralhousesarelessefficientthannewerhouses,whichworsensthisvulnerability.

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Figure 4.1 Percentage of household income spent on energy by income level, 2013. Results of a national study on impact of energy costs on U.S. households. For 2013, household heating and electricity costs are 34.3% of income for <$10K income, 9.4% for $10K‐<30K. Inset shows income spent on energy in the <$10K income level (76% in 2013) was 55% in 2005 and 36% in 2001. (data from Trisko, 2013)  TheNRVishighlydependentonfossilfuelenergy,includingcoal‐firedelectricity

andpetroleum‐basedtransportationfuels.Thesefossilfuelsourceshavebeenpronetopricevolatility.Inaddition,thesesourceshaveconsiderableenvironmentalimpact:theircombustionemissionscontributetolocalairpollutionandGHGemissions,andtheiroriginalextraction,processingandtransportcreateotherenvironmentalimpactsandrisksonlandandwaters.OurestimateofenergyrelatedCO2emissionsof17.5metrictons/person‐year(mt/p‐y)isatleast30%morethantheVirginiaaverage,largelybecauseofourdependenceoncoal‐generatedelectricity.Thishighlevelofcarbonemissionsincreasestheregion’svulnerabilitybecausefurtherfederalandstateactionstoprotecttheclimateandairandwaterqualitywilllikelyincreasethepriceoffossilfuelenergyandNRVenergyexpenditures. TheNRVhasalegacyofenergyinefficientbuildings,landuse,andtransportation

systems,creatinginpartbyhistoricallylowenergypricesthatprovidedlittleincentiveforinvestmentsinenergyefficiency.TheNRVhasastockofolder,lessefficientresidentialbuildings,aswellasdispersedlanduseandlongcommutingdistancesandlimitedtransitopportunitiesbecauseofitslowaveragedensity.Thelowaveragedensityalsolimitsnaturalgasservicetoonlyhigherdensityareas.HalfofNRVhousingunitswerebuiltbefore1974(beforebuildingcodeshadenergyefficiencystandards)and¼werebuiltbefore1960.

34.3%

9.4% 5.8% 3.0% 4.1%

42.1%

13.5%10.5%

5.5% 7.0%

<$10K $10K‐<$30K $30K‐<$50K >$50K TOTALS

PercentageofHouseholdIncomeSpentonEnergybyAnnualIncomeLevel,2013(Inset:2001,2005,2013)

ResidentialEnergy TransportationEnergy

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TheNRVimportsnearlyallofitsenergy,and80‐90%ofthe$500millioninenergyexpendituresleavestheregionandisnotavailabletogeneratefurtherlocaleconomicactivity.ThisistypicalformostcommunitiesliketheNRVthatarehighlydependentonoutsidesourcesofenergy.Energydollarsarelikesmokeupthechimney—theyleavethecommunityquickly.Theysupporteconomicactivityandprofitsinenergycompaniesinotherlocationswheretheenergyweuseisextracted,processed,generated,andtransported.Unlikeotherdollarsspentlocally,thesedollarsdonothaveachancetorecirculateandgeneratelocaleconomicactivityandemployment.Manycommunitieshavefocusedonreducingthis“leakage”oflocaldollarsbycreatingenergyefficiencyprogramsandinvestinginlocalenergysourcesandservices.Theyarguethatlocalenergyefficiencyandsourcedevelopmentactivitynotonlylowersconsumers’energybills,butalsocontributestolocaleconomicdevelopmentandjobcreation,asshowninfigure4.2.

Local Energy Measures (jobs, local and high quality) 

  Energy Bill Savings (consumer cost savings) 

  Productive Spending/ Local Investments (jobs, local) 

Figure 4.2 The Economic Opportunity Value Chain of Local Energy Efficiency and Sources (after Mackres, 2012) 

TheNRVishometoexcellentenergyresearchandtrainingprograms.NRVcollegesanduniversitiesandtrainingcentersprovideafoundationforenergytechnologydevelopmentandworkforcetraining.VirginiaTechisamongthetop41researchuniversitiesinthenationandhasspecialexpertiseinpowerelectronicsandelectricpowersystems,buildingscienceanddesign,agriculturalenergysystems,energymanagement,andenergyplanning.NewRiverCommunityCollegehasexcellentcertificationprogramsforrenewableenergyinstallers.Thenon‐profitCommunityHousingPartnersoperatestheEnergySolutionsResearchandTrainingCenter,anaward‐winningweatherizationtrainingcenterforresidentialenergyretrofit. TheNRVhasvaluableexperienceandexpertiseinresidentialenergyefficiency

andsolarsysteminstallation,butbarriersinhibitrealizingtheirpotential.Theregionishomenotonlytoeducationandtrainingresourcesbutalsotolocalfirmswithexpertiseinenergytechnology,newandretrofitbuildingefficiency,solarPVandthermalinstallation,andindustrialenergysystems.Thisexpertiseandexperienceprovideafoundationforbuildingacleanenergyeconomy.Still,achievingthepotentialrequiresovercomingseveralbarriers,includinglimitedinvestmentcapitalandfinancingmechanisms,inconsistentlocalprogramsandpoliticalcommitment,andinsufficientstatepolicytoadvancecleanenergy.

TheNRVishometolargeemployers,whicharededicatedtocleanenergyandprovidemodelsforotherfirmsandinstitutionsintheregion.Volvo,Celanese,WalMart,VirginiaTech,andotherscandemonstratethepathwaystocleanenergyforothersandhelppromoteacultureofconservationintheregion.

4‐4

Localgovernmentsarebeginningtogiveattentiontoenergyintheirlocalplanningandpolicies.Mostlocalgovernmentsintheregionaddressenergyandthebenefitsoflocalenergyefficiency,renewableenergy,andcompactdevelopmentoptionsintheircomprehensiveplans.TheTownofBlacksburg’sexperienceinenergy,climateprotection,comprehensiveplanning,andenvironmentalprogramshasgiventheTownnationalrecognitionandprovidesamodelfortheregion’slocalgovernments.

TheNRVenergysituationcreatesnotonlychallengesbutalsoopportunities.AlthoughhigherenergypricesandarelativelyinefficienthousingstockcreatechallengesforNRVhouseholds,theyalsocombinetoincreasethecost‐effectivenessofenergyefficiencyimprovementsthatcanreduceenergyexpenditures,retainlocaldollars,andreducetheenvironmentaleffectsofenergyuse.Becauseofitseducational,research,andtrainingexpertise;itslocalpublic,private,andnon‐profitinstitutions;anditsentrepreneurialspirit,theNRViswellpositionedtotakeadvantageofthisopportunitytoadvancealocalcleanenergyeconomyandservethelargerregion.Todosomayrequiredevelopingstrategicpartnerships,attractingprivateinvestment,andadvancingmoreeffectivestatecleanenergypolicies.

5‐1

5.EnergyandtheNRVLivabilityInitiativeThesetrendsandlessonspresentsomefutureenergy‐relatedchallengesfortheNRV,butalsosomeopportunities.ThisRegionalEnergyPlananditsprinciplesandstrategiesshouldbeguidedbypublicinvolvementandactionsdevelopedthroughtheNRVLivabilityInitiative(NRV‐LI)andNRVlocalgovernments.TheNRV‐LIEnergyWorkGroupmetforoneyearanddevelopedalistofpotentialenergygoalsfortheregion.TheCommunityPrioritiesSurvey(NRVPDC,2013)wasusedtogaugebroaderpublicinputonthesegoals.Figures5.1and5.2givethesurveyresultsforenergy.Respondentswereaskedtoratetheactionsinpriorityona1‐5scale,thentoselecttheirtopthreegoals.ThetopenergyprioritiesandgoalsincludedEnergyEfficiencyandConservation(energyuse(andthereforecost)isreducedinhouseholds,businesses,institutionsandmunicipalitiesthroughefficiencyandconservation),EnvironmentalStewardship(negativeimpactsofenergyproductionandconsumptionarereduced).Renewable&AlternativeEnergy,TransportationOptions&Efficiency,andEnergyReliabilitywerealsoratedhigh.

5‐2

Inaddition,thesurveygoalsforhousingandtransportationincludedenergy‐relatedissues.HousingAffordabilityandEnergyEfficiencywerethetoptworatedhousingpriorities,andPublicInfrastructure&DevelopmentPatterns(infrastructuredevelopmenthappensprimarilyaroundexistingtownandjobcenters)andAffordabilitywerethetoptwohousinggoals.Fortransportation,PublicTransitEnhancements,SafetyandAffordability,andWalking&BikingOptionswerethetopthreegoals.TheLivabilityInitiative2012InterimReportincludedthefollowingrecommendationtoenhancelivingandworkingenvironments:

Reduceenergycoststohouseholds,businesses,institutions,andmunicipalitiesthroughenergyefficiencyimprovements,reducedenergywaste,localenergygeneration,affordableenergypricesandrates,andexpandedconsumerchoice.TheEightPrinciplesofthisregionalenergyplandescribedinthenextsectionrespondtothechallengesdemonstratedbycurrentNRVenergytrends,totheprioritiesandrecommendationsdevelopedthroughtheLivabilityInitiativeprocess,andtotheopportunitiestheregionhastotransformitsenergyusepatterns.

  6‐1

6.EightPrinciplesoftheNRVRegionalEnergyPlanAbasicpremiseofthisPlanisthattheNRVregionisinastrongpositiontoprepareforanefficientenergyfuturelessdependentonfossilfuelsbytransformingitsenergyuse.Insodoing,theregioncanplayasignificantroleinsouthwestVirginia’sfutureenergyeconomy.Theregion’sexistingenergyexpertiseandeducationandtrainingprogramsprovideinstitutionalandintellectualcapitaltopreparetheregionforthefuture,reduceenergyexpendituresleavingtheregion,anddevelopcleanenergyservicestosupportthelargerregionfromRoanoketoBristoltoDanvilleandbeyond.Keyelementstoachievethisgoalincludepublic‐private‐nonprofitpartnerships,profitableprivatefirms,investmentcapitalandfinancingmechanisms,atrainedworkforce,andsupportivestateandlocalpolicies.Theseelementsareessentialtoovercomeinherenthistorical,cultural,institutional,andpoliticalbarrierstoenergymarkettransformation.Theseweredescribedinsection1andincludeweakstatepoliciessupportingcleanenergycomparedtootherstates,coal‐basedelectricity,noactiveutilityenergyefficiencyprogramstostimulateinvestmentinefficiencyimprovements,apopulationdensity60%ofthestateaverage,adiverseregionalculturemixedinthevalueitplacesonsustainability,andrelativelylowlevelsofaverageincomeandfinancialcapital.However,theNRVisblessedwithresourcesandtalentthatprovideopportunitiestoadvanceacleanenergyeconomy.Thesearepresentintheregion’speople,institutions,andbusinesses,includinglargebusinessescommittedtocleanenergy,amajorresearchuniversity,qualitygreenjobstrainingprograms,localgovernmentsandcommunityorganizationsdedicatedtosustainability,andentrepreneurialcleanenergyandgreenbuildingfirms.ThePlanisbasedoneightprinciplesgivenintable6.1thatformitsprimarygoalsandframeitsobjectivesandstrategies.Table6.1EightPrinciplesoftheNewRiverValleyRegionalEnergyPlan

1. PositiontheNewRiverValleyEconomyforanAffordable,Reliable,and

CleanEnergyFuture2. HelpPreserveRuralLivingChoicesthroughEnergyImprovements3. EnhanceLivabilityandEfficiencyofUrbanTownandVillageLiving4. ReduceEnvironmentalImpactofEnergyUse5. ImproveBuildingEfficiencystartingwithResidentialRetrofit6. DevelopRenewableEnergySystems7. EngageMultiplePartiesinCreatingaCultureofCleanEnergy8. AdoptLocalPoliciesandPromoteStatePoliciestoImplementtheNRV

RegionalEnergyPlan

  6‐2

1. PositiontheNRVEconomyforanAffordable,ReliableandCleanEnergyFutureOneofthemainlessonsfromrecentenergytrendsintheNRVisthesignificantriseinenergyexpendituresanditseffectsonhouseholdsandbusinesses.Lowerincomeandruralhouseholdsareespeciallyhardhit.Itisexpectedthatenergypriceswillcontinuetoincrease.Theserisingenergycostspresentthemostcompellingreasonforactiontoassurefutureaffordabilityofthebenefitswegetfromenergyuse,namelythermalcomfort,mobility,communications,industry,andqualityoflife.Higherenergycostsnotonlyimpacthouseholds,buttheyarealsoadrainonthelocaleconomy.TheenergybillfortheNRVin2013willlikelyexceed$500millionandnearlyallofthesedollarswillexittheregionimmediately,beforetheycancirculateinthelocaleconomyandcreateindirectandinducedlocaleconomicactivityandemployment. Manycommunitieshavefocusedonreducingthis“leakage”ofenergydollarsbycreatingenergyefficiencyprogramsandinvestinginlocalenergysourcesandservices.Theyarguethatlocalenergyefficiencyandsourcedevelopmentactivitynotonlylowersconsumers’energybills,butalsocontributestolocaleconomicdevelopmentandjobcreation.Studiesoftheeffectsofeconomicinvestmentandjobcreationshowthatforeach$1millionspentonenergy,only9.9jobsarecreatedandmostofthesearelocatedwheretheenergyisdeveloped,whileforeach$1millionspentoncontractedconstructionandrelatedservices,20.3jobsarecreatedandmostofthesearelocal(Mackres,2012).Thesejobs,andthewagestheycreate,arereferredtoasdirectmacroeconomiceffectsofinvestmentoreconomicactivity.Inaddition,thereareindirecteffectsorchangesinsales,income,orjobsinupstream‐linkedsupplysectorswithintheregion,andinducedeffectsofsales,income,orjobscreatedbychangesinspendingpatternsduetodollarsre‐spentinthelocaleconomy.CleanEnergyasanEconomicDevelopmentStrategyInaddition,thereisevidencefrombothnationalstudiesandlocalexperience,thatcleanenergymaybeadvantageousforeconomicdevelopmentandattractingnewbusinessesintheevolvingenergyeconomy.ThePewCharitableTrusts’Innovate,Manufacture,Competestudyshowshowthecleanenergyindustryisgainingmomentumaroundtheworld,marketsforcleanenergygoodsandservicesaregrowing,andanewglobalcompetitionisdevelopingamongcompaniesandcountriesalike.Thestudystates,however,thattheoutlookfortheU.S.islesspositive,anditislaggingtheglobalcompetitiveracetoacleanenergyeconomy,largelyduetoinadequatenationalenergypolicies(PewCT,2012).Thefutureiscleanenergy—weneedtodevelopitorbeleftbehind.AsimilarcasecanbemadeaboutVirginiawithintheU.S.Thereisalsoacleanenergycompetitionoccurringamongthestates,andVirginiaislosing.TheAmericanCouncilforanEnergyEfficientEconomy(ACEEE)ranksVirginia37stinenergyefficiencypolicy(ACEEE,2012),andarecentrankingofthestatesolarenergypolicyputsVirginiaat33rdwitha“D”grade(SPR,2013).Meanwhileourneighborsfaremuchbetter:insolar,Maryland(2nd),DistrictofColumbia(6th),andNorthCarolina(14th)allhave“A”grades;andinefficiency,allthreerankaboveVirginia,withMarylandhighestofthethreewitharankof9th.AslongasVirginialagsinthiscleanenergycompetition,theNRVwillbeatadecideddisadvantageinitsdevelopmentofacleanenergyeconomy.

  6‐3

However,manylocalitieshaveforgedaheaddespitelimitedstatesupport.Forexample,ArlingtonCounty’sCommunityEnergyPlanwasadoptedbytheCountyBoardinJune2013aspartoftheCounty’sComprehensivePlan.Itincludesambitiousgoalsforefficiencyinbuildings,transportation,andgovernmentactivities,includingdistrictenergysystemsinredevelopmentprojects(ArlingtonCounty,2013)Insomecases,localchambersofcommercehavefacilitatedcleanenergyinitiativestoassistitsmemberbusinessesandattractnewindustryandinvestment.Thenational,non‐partisanChambersforInnovationandCleanEnergy(CICE)isanenergynetworkandinformationhubcreatedandrunbylocalchambers.Box6.1highlightstwoofCICE’slocalcaseexamplesthatmayhavelessonsfortheNRV.Box6.1LocalChambersofCommerceandCleanEnergy(CICE,2013)

Austin, Texas: Within one of the largest oil and natural gas producing states in the nation, the Greater Austin Chamber of Commerce leveraged its close ties to The University of Texas and the city’s municipally owned utility to recruit 20 clean-tech companies to Austin. The Austin Chamber played a key role in developing a cutting-edge demonstration community for smart grid technologies, helps strengthen clean energy startups through a local incubator, and actively works to position Austin as a top location for entrepreneurs, investors, and clean-tech businesses.

Merrimack Valley, Massachusetts: Forty-six companies in Northeast Massachusetts expect to save more than $30 million collectively over the next 30 years, thanks to the Merrimack Valley Chamber of Commerce’s award-winning clean energy program. In June of 2010, as businesses all over the United States struggled to stay competitive despite rising energy costs, the Chamber developed a pioneering plan to help its members cut their utility bills and attract new investment to the region. Working with a local clean energy solutions provider and government officials, it took just two years to set forty-six companies on the path to long-term energy efficiency and on-site clean energy generation.

OpportunitiesLostbecauseNRVLacksCleanEnergy?Asheville,NC,wasalsohighlightedbyCICE.AJune2013“CleanEnergyintheMountains”conferencehighlightedthecity’seffortstoadvancecleanenergyandhowithashelpedeconomicdevelopment.OneofAsheville’snewestbusinesses,theSierraNevadaBrewerywasonceconsideringChristiansburgasapotentialsite.ThecompanychoseAshevilleoverChristiansburgforanumberofreasons,butthecompanysaidthatwesternNorthCarolina’s“focusongreentechnologiesplayedaroleinluringthebusinesstodecidetoinvest$107.5millionintoitsnewbrewerythere”(MountainExpress,2013).AnothermajorprospectforChristiansburgwastheMicrosoftdatacenterwithits$499millioninvestment,whichultimatelywaslocatedinBoydtoninMecklenbergCounty,Virginia.MicrosoftindicatedthattheChristiansburgsitewasappealingbecauseitwasnearVirginiaTech,butithadtwoliabilities:electricityavailableatthesite,whileplentiful,“wasnotderivedsignificantlyenoughfromagreensource,”andthesitesitsatopkarstformationsthatmightposestructuralissues(RoanokeTimes,9/16/2010).Progressive,growingcompaniesthatwewouldliketoattracttotheNRVareincreasinglyconsideringcleanenergyasanimportantcomponentintheirlocationdecisions.

  6‐4

Figure 6.1b Lumenhaus 

CleanEnergyEntrepreneurialActivityTheregionalreadyhostslocalbusinessestryingtodevelopcleanenergy.Theseincludegreenbuildingcontractorsandenergyserviceproviders(seeBox3.3).Theregion’shighereducationinstitutionscanspawninnovation,entrepreneurship,andstart‐upfirms.Forexample,VTKnowledgeWorksisasuccessfulnon‐profitfirmintheVirginiaTechCorporateResearchCenter(CRC)thatmentorsinnovatorsandentrepreneursontheirwaytostartingupnewcompanies.Box6.2providestwoexamplesofinnovation,PowerHubSystemsandtheLumenHouse.Box6.2UniversityResearchSpawnsInnovationandPotentialEconomicDevelopmentPowerHubSystemsisanexampleofasuccessfulstart‐upcompanyspawnedbyuniversityresearch.TheBlacksburgfirmspecializesindistributedenergystorage,intelligentpowersystems,andsmart‐gridcompliance.ThefirmwasawardedtheRoanoke‐BlacksburgTechnologyCouncil’s2012InnovationAward.Ithasdeployed6demonstrationenergystorageunitsinCalifornia(3inSanDiegoand3inSacramento)andotherinstallationsforstandbyandemergencypower.

TheVirginiaTechLumenHausisaprototypedesignforazero‐energydwelling.DesignedandbuiltbyVirginiaTechfacultyandstudents,theprojecthaswonnumerousawardsincludingtheinternationalSolarDecathloncompetitioninMadrid,Spain.Thedwellingdesignandenergyfeaturesarebeingconsideredformultifamilymodularhousingproduction.

Figure 6.1a PowerHub 

  6‐5

EnergyReliabilityInadditiontoleakageofenergydollars,theregionhasrecentlybeenhard‐hitwithweather‐relatedpoweroutages,volatilityoffuelprices,andpowerloademergencies,raisingconcernsaboutreliabilityofaccesstoaffordableenergy.Reliable,affordableenergyisaprerequisiteforattractingnewbusinessandindustrytotheregion.Wearewellawareofweather‐relatedoutagesandAPCOhasdonemuchtomitigatetheirimpacts.Butinaddition,severaltimesinthepastfewyears,loadreductionemergencieshaveoccurredduetohighdemandontheregionalelectricpowergrid,andlargeelectricityusershavebeennotifiedtoreducetheirdemandbyshuttingdownnon‐essentiallightingandequipment.Althoughlargecustomersreceiveafinancialincentivetoparticipateintheprogram,theseloadreductionscauseproductivitydisruptionsinlocalindustryandlargeusers.ThelastepisodeoccurredSeptember11,2013.Improvementsinefficiencyofuseanddevelopmentofdistributedsourceswithintheregioncanimprovefuturereliabilitybyreducingtheeffectsofpricevolatility,theimpactsofpowerdisruptions,andtheneedforandincidenceofloadreductionemergencies,. CleanEnergyEconomyObjectivesandStrategies1.a.Reducegrowthofenergyexpendituresandimpactsonhouseholdstoretainenergydollarsforlocalpurchasesandinvestment.1.a.1.Expandbuildingefficiencyprogramsinresidentialandcommercialsectorstoreducelong‐termenergycosts(seePrinciple5).1.b.1.Developtransportationandlanduseoptionsthatreduceauto‐dependenceandreducelong‐termenergycosts(seePrinciples2,3).1.a.3.Developcost‐effectiverenewableenergysystemstoreducelong‐termenergycosts(seePrinciple6).1.b.MaketheNRVbecomethecleanenergycenterofSouthwestVirginiatodevelopthelocaleconomy,attractnewbusiness,andincreasetheregion’scompetitivenessinthefuturecleanenergyeconomy.1.b.1.Developbusinessexpertiseandmarketsforenergyefficiencyimprovementsandrenewableenergy(seePrinciples5,6).1.b.2.Usecolleges/universitiesandlocalentrepreneurshiptoestablishNRVasCleanEnergyModelforSWVirginiathrougheducation/training,energyservices,researchtodevelopnewtechnologies,andstart‐upcompanies.1.b.3.Attractinternalandexternalinvestmentcapitaltodevelopandimplementcleanenergytechnologiesincludingefficiencyimprovements,renewableenergydevelopment,electricvehiclecharginginfrastructure,smartgrids,energystorage,andothertechnologies.1.c.Enhanceenergyreliabilitythroughimprovedinfrastructureandlocaldistributedenergysources.1.c.1.Developneighborhood‐,farm‐,campus‐,andcommunity‐scaledistributedenergyproductionandstoragesystems(seePrinciple6).

  6‐6

2. HelpPreserveRuralLivingChoicesthroughEnergyImprovementsTheNewRiverValleypridesitselfonitsnaturalbeauty,rurallandscape,andrurallifestyle.Manycametotheregionforruralandsmalltownliving.Itisimportanttopreserverurallivingchoicesforthefuture.Energycostsforheatingandtransportationaremakingrurallivingmoreexpensiveandimpactingmanyruralresidents,especiallylowerincomeandelderlyresidentsinolder,lessefficienthomeswithlongercommute/traveldistances.Thesehouseholdsareoutsidelower‐costnaturalgasserviceareasandaregenerallydependentonmoreexpensiveelectricity,fueloil,andpropaneforheating.Manyareforcedtosupplementtheseexpensivefuelswithwoodheat.Theseolderhomesdependentoncostlyheatingsourcesarethemostcosteffectivetoretrofitwithefficiencyimprovementssuchasairleakagesealing,insulation,andHVACupgrades(seePrinciple5).Ruralresidentsarehighlydependentonautomobilemobilitywithlongertraveldistances.Lowerincomeruralresidents’transportationcostsarefurtherimpactedbyolder,lessefficientvehicles.Transitoptionsareverylimited,althoughride‐sharingopportunitiescanreducetravelcosts.RIDESolutionsisaserviceoftheNRVPlanningDistrictCommissiontoprovidecommutingoptionsandcar‐poolmatchingforNRVcommuters.Itprovidesonealternativetoreducethefuelcostofcommuting(seeBox6.3).

Box6.3RIDESolutionsRIDESolutions(http://ridesolutions.org)ismanagedbytheNRVPlanningDistrictCommissionandoffersthefollowingfreebenefitstocommutersintheNewRiverandRoanokeValleys:• Freecarpoolmatchingservice(seemaponrightbelowshowingexistingmatchedcarpoolers;maponleftshowsexistingparkandridelots).• GuaranteedRideHomeprogram• Anonlineresourceforothercommutingoptions‐biking,walking,takingthebus,telework• RIDESolvercalculatortofindouthowmuchchanginghowyourcommutecansaveyou:http://www.ridesolutions.org/ridesolver.asp

 Figure 6.2a: Park and Ride Lots in the NRV     Figure 6.2b:Matched Car‐poolers in the NRV 

  6‐7

Inaddition,somelargeemployers,suchasVirginiaTech,offeranumberofalternativetransportationoptionsforcommuters.VT’svanpoolingprogramcurrentlyoperatesthreevanpoolsfromPulaski,RichCreek,andRoanoke.Also,transitoptionsarereachingmoreareasintheregion,withBlacksburgTransitextendingservicetoChristiansburgandRadfordTransitservicingFairlawnandothertransportationnodes.TheSmartWayBusprovidescommutingoptionsbetweenBlacksburg,Christiansburg,andRoanoke,withalinktorailserviceinLynchburg.PassengerrailserviceisbeingextendingtoRoanokeby2016‐17,andhopefullytotheNRVwhenitextendsfurthersouthwest.Finally,theMegaBusstopatFallingBranchinChristiansburgoffersaveryaffordableexpresslinkfortravelerstoWashington,DC,andKnoxville.RuralRenewableEnergyDevelopment.NRV’sruralareasareland‐richandofferpotentialforfarm‐basedrenewableenergyincludingbiomassfuelsandlargerscalesolarandwindelectricsystems.The2013GeneralAssemblyauthorizedagricultural‐basedrenewablesystems(seeBox6.4),andthereissignificantpotentialforground‐andbarn‐roof‐mountedsolarPVsystems.Intermediateridgesonruralpropertiesofferpotentialforwindenergysystems.BiomassrenewableenergysourceshaveallbeenproducedintheNRV,includingforestandcropresidues,harvestedwoodandswitchgrass,digesteranimalwastes,andprocessedbioethanolandbiodiesel.Exceptforwoodheatingfuel,thereisnolocalcommerceforlocalbiomassfuels.

Box6.42013EnactedHB1695AgriculturalNetMetering

Agriculturalnetmetering.RequirestheStateCorporationCommissiontoestablishanet‐energy‐meteringprogramforeligibleagriculturalcustomers.Agriculturalnetmeteringwillallowacustomerthatoperatesasolar,wind,oraerobicoranaerobicdigestergasfacilityofupto500kilowattsaspartofanagriculturalbusinesstobeservedbymultiplemetersthatarelocatedatseparatebutcontiguoussites,providedthegeneratingfacilityislocatedonlandownedorcontrolledbytheagriculturalbusinessandisusedtoprovideenergytometeredaccountsoftheagriculturalbusiness.RuralLivingEnergyObjectivesandStrategies2.a.Improveruralbuildingefficiencyandconservationbehaviortoreduceenergyexpenditures2.a.1.TargetNRVresidentialretrofitprogrameffortstoolder,less‐efficienthomesdependentonmorecostlyelectricity/fueloil/propane.Thesearethemostcost‐effectiveretrofitsandtheeasiesttofinance.Withinthisgroup,firsttargetmorevulnerablelowerincomeandelderlyruralhouseholds(seePrinciple5).2.a.2.Developandimplementeducationandoutreachprogramsinpublicschoolsandcivicorganizationsonreducingenergywastethroughenergyconservingbehavior2.b.Developrural‐andfarm‐basedrenewableenergyproduction2.b.1.Inventoryandnetworkexistingrural‐andfarm‐basedenergyproductionactivitiesintheNRV

  6‐8

2.b.2.Workingwithlandownersandagriculturalbusinesses,developspecificprojectopportunitiesandbusinessplansforprojectdevelopment.2.b.3.Engageuniversityandcollegestudentsandfacultyinformulatingprojectdevelopmentandbusinessplans.2.c.Providemobilityimprovementoptionsforruralresidents2.c.1.Assesscurrentmobilityoptions,otherthansingle‐occupancyvehicle,includingRIDESolutions,VTAlternativeTransportation,BlacksburgandRadfordTransit,SmartWayBus,andotherprograms.2.c.2.Enhanceexistingprogramoutreachandexpandservicetoruralresidents.3. EnhanceLivabilityandEfficiencyofUrbanTownandVillageLiving MostNRVresidentsliveintheregion’stownsandvillages.Regardingenergyuseandcost,thesehouseholdshaveadvantagesoverruralresidentsasmanyareinnaturalgasserviceareaswithlower‐costheatingfuel,haveshortertraveldistancestoworkandotheractivities,andhavemoreaccesstopublictransit.Theircommunitiesgenerallyhavegreateraccesstostateandfederalgovernmentsupportofaffordablehousinganddevelopmentassistance.Still,thereareopportunitiestoimprovebuildingefficiencyandreduceenergycosts,enhancemobilityoptions,anddevelopbuilding‐andcommunity‐scalerenewableenergyprojects,allofwhichhelpcreatemorelivableandaffordablecommunities.

UrbanBuildingEfficiency.Asinruralareas,oneofthemainopportunitiesintownsandvillagesforenergyefficiencyisinbuildings.Muchoftheexistinghousingandcommercialbuildingstockisoldandinefficient,andenergyefficiencyretrofitsarethebestwaytoreducefutureheatingandcoolingcosts.Therearewell‐qualifiedcontractorswhoconductbuildingenergyauditsandinstallretrofitmeasuresthatreduceheatingandotherenergyconsumptionby20%ormore.ThisbuildingenergyretrofitisthegreatestcleanenergyopportunityintheNRVandisaddressedindetailunderPrinciple5.NewbuildingconstructionmustcomplyenergyrequirementsundertheVirginiaUniformBuildingCode,whichismademorestringenteverythreeyears.ManyNRVbuildersaregoingbeyondthecodeanddevelopinghighlyefficientEarthCraft,EnergyStar,andLEEDcertifiedbuildingsthatfurtherreduceenergyuseandfutureenergycosts.AgoodexampleisGreenValleyBuilders’MountTaborMeadows,aBlacksburgsubdivisionofallEarthCrafthomes,includingtheregion’sfirstcertifiedundertheLEEDHomeprotocol.UrbanLandUseEfficiency.Urbanizedareasoffersignificantopportunitiesforefficienttransportation.Thisbeginswithmixedlanduseandincreaseddensity,whichshortentraveldistances;enablewalkability,bike‐ability,andtransit;andthusreduceautomobileuse,milestraveled,andenergyuseandemissions.Thesefeaturesareimportantelementsofthefive“D’s”ofefficienturbanlanduse:• Density:population/employmentperacre• Diversity:mixeduseresidential/commercial/jobs• Design:aesthetics,sidewalks,streetconnectivity• Destinationaccessibility:easeoftripfrompointoforigin• DistancetoTransit:¼to½milefromhomeorwork

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Thesedenser,walkable,mixed‐use,transit‐orienteddevelopmentshavebecomeincreasinglypopularasevidencedbyconsumersurveysandpropertymarketvalues,notjustfortheirtimeandenergyefficiencybenefits,butalsofortheirsocialandcommunitybenefits.NRVlocalgovernmentsarebeginningtoreflectthisdesirabledevelopmentpatternfortheirurbanizedareas.Forexample,PulaskiCounty’scurrentComprehensivePlancallsfordevelopmenttofocusinalreadydevelopedareas:“OBJECTIVE4.3:Encourage growth in existingpopulationnodesand focusfuturedevelopmentintoserviceableareasoftheCounty.RecommendedStrategies:4.3‐1.Limiturbanexpansiontothoseareasmostsuitablefornewdevelopmentonthebasisofaccessibility,extensionofservices,terrain,soils,andothercriteria….4.3‐2.ThePlanningCommissionshouldencouragetheuseofclusterdevelopmentalongmajortransportationroutes.4.3.3ThePlanningCommissionwilldiscouragestripcommercialandresidentialdevelopmentalongmajortransportationroutesandencouragetheuseofclustereddevelopment.”

 RadfordCity’s’s2030ComprehensivePlanhasasimilarlanduseobjective:“Redevelopmentofunderutilizedresidentialandbusinesspropertiesshouldbepursuedfordevelopmentbeforeconsideringnewdevelopmentonvacant,undevelopedland.”TheTownofBlacksburghasfullyembracedthisapproachtourbandevelopmentinits2012ComprehensivePlan.AmongitsCommunityCharacterandLandUseobjectivesare:• “Well‐designedpedestrianandbicyclefriendlyroutesandfacilitiesareessentialtotheTown’sidentityasawalkableandbikeablecommunity.Pedestriancirculationsystemsarerequiredtobeconstructedinallnewdevelopments.”• “ExploreprogramstoencouragemoreconstructioninTownofEarthCraftcertifiedandU.S.GreenBuildingCouncil’sLEEDcertifiedbuildings.”• “EncourageresidentialinfillintheDowntownarea.SupporttheadditionofamixofusesandservicesthatwillattractandsupportaDowntownresidentialpopulation.” Toachievetheseobjectives,BlacksburgappliesdesignatedMixedUseAreasandUrbanDevelopmentAreasinitsComprehensivePlan’sFutureLandUsemap(seeBox6.5).

UrbanTransportation.Asdiscussedabove,landuseanddevelopmentpatternsaffecttransportationneedsinurbanizedareas.Mixedusedevelopment,density,andwalkabilityreduceautomobileneedsandrelatedfuelcostandemissions.Thesedevelopmentpatternsalsoenabletransitsystems.BlacksburgTransit(BT)andRadfordTransitsystemswerediscussedinrelationshiptoruraltransportationopportunities,buttheirprimarybenefitistotownandcityresidents.BTisaneffectivetransitsystembecauseithasarelativelyhighloadfactorthatcontributestoitsenergysavings.RidershipisenhancedbythezerofareforstudentsanduniversitystaffbecausethesystemisfundedprimarilybyVirginiaTechstudentfees.BT’sTwo‐Town

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Box 6.5 Mixed Use Areas and Urban Development Areas in Blacksburg’s Land Use Plan

MixedUseAreasaredesignatedwithintheTownwhereamixofresidentialandnon‐residentialdevelopmentandredevelopmentisencouraged.EightMixedUseAreasaredesignatedintheFutureLandUseMap;toalargeextent,thesearecoincidentwiththedesignatedUDAs.UrbanDevelopmentAreas(UDA)areintendedtoserveasafocalpointforgrowthoverthenext10to20years.DevelopmentwithintheUDAshouldbecompact,usingmixed‐usedevelopmentdesignedtoaccommodatepedestrianandvehiculartrafficwithafullcomplementofservicesandamenities.UDAshouldalsoprovidefortransitfacilitiesorstops.DesignatedUDAareintendedtobedevelopedaturbandensitiesandintensitiesandmayinclude:• single‐familyresidencesatfourdwellingsperdevelopableacre,townhousesatsixdwellingsperdevelopableacre,ormultifamilyunitsat12unitsperdevelopableacreorhigheroracombinationoftheseunittypes,or• commercialdevelopmentatafloorarearatioof0.4peracreorhigher.IndividualparcelsorgroupsofparcelswithinaUDAmaybeeitherhigherorlowerthanthegeneraldensity/intensitystandards,aslongasthesegeneraldensity/intensitystandardsareavailableinsomecombinationsintheUDAwhentakenasawhole.Compact,mixedusesareappropriateinUDAanddevelopmentintheseareasshouldbeguidedinpartbythemixed‐useareaguidelines.

Figure 6.3: Blacksburg’s UDA’s are also the locations of its Mixed Use Areas. Also shown is one of two Montgomery County UDAs.  

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TrolleyanditsserviceinChristiansburghaveextendeditsreachoutsideofBlacksburg.BTserviceiscoordinatedwithBlacksburglanduseplanningtoprovidetransitservicetonewdevelopments,includingthoseinmixeduseareasandUDAs.Extendedtransitopportunitiesintheregionwerealsodiscussedintheprevioussection.TheSmartWayBusfromBlacksburg/ChristiansburgtoRoanoke/RoanokeairportanditsconnectortoLynchburgAmtrakrailstation,theaffordableMegaBusexpressbusfromChristiansburgtoDCandKnoxville,andfuturerailservicefromRoanoke,allprovideopportunitiesfornon‐autotravelfromtheregion.ElectricVehicleCharging.AnotheropportunityforefficienttransportationintheNRVistheexpectedgrowthofplug‐inelectricdrivevehicles.TheU.S.marketforplug‐invehiclesisexpectedtoriseto1.8millionby2020(forcomparison,435,000hybridvehiclesweresoldin2012).Comparedtogasolinevehicles,electricdrivevehicleshavezerourbanairemissions,have¼theoperatingcost,emitabout¾oftheoverallcarbonemissionsevenwithourcoal‐basedelectricity,andprovideareadymarketforrenewableelectricity,especiallynighttimewindpower.Moreimportantly,creatinganelectric‐vehiclecharginginfrastructuredemonstratesacommunity’scommitmenttoacleanenergyfuture.Chargingtechnologiesareratedbyvoltage(V)/amperes(A)andchargingtimes:Level1(120v/12A,15hoursfor20‐kWhbattery),Level2(240V/15A,7hours;240V/30A,3.5hours),Level3(480V/125A),0.5hours).Somestatesandcommunitiesareinvestingheavilyincharginginfrastructureinanticipationofthismarket.ThereismuchlessactivityinVirginia.ButtheNRVhasagrowingnumberofchargingstations,asshowninfigure6.4: Blacksburghas9freelevel‐1and8freelevel‐2stations, TheVolvoplantinDublinhas3freelevel‐2chargers, Christiansburg’sNissandealerinhas2level‐2, HotelFloydhas1level‐2charger. AsthenumberofelectricvehiclesincreasesintheNRV,theregionshouldaddmorecharginginfrastructure.APCO,VTES,andREDshouldanticipatethismarketforelectricity.

                  Figure 6.4 NRV Electric Vehicle Charging Stations (www.plugshare.com) 

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UrbanLivingEnergyandLandUseObjectivesandStrategies3.a.Slowthegrowthofenergyexpendituresbyimprovingexistingurbanbuildingefficiencyandreducingenergywastethroughconservationbehavior.3.a.1.TargetNRVresidentialretrofitprogrameffortstoolder,less‐efficienthomesdependentonmorecostlyelectricity/fueloil/propane.Thesearethemostcost‐effectiveretrofitsandtheeasiesttofinance.Withinthisgroup,firsttargetmorevulnerablelow‐incomeandelderlyruralhouseholds(seePrinciple5).3.a.2.Expandbuildingretrofitprogramstomultifamilyandcommercialbuildings.3.a.3.Developandimplementeducationandoutreachprogramsinpublicschoolsandcivicorganizationsonreducingenergywastethroughenergyconservingbehavior3.b.Encourageandincentivizeenergyefficiencyinnewdevelopmentbeyondthebuildingcode,includingEarthCraft,EnergyStar,PassivHaus,andLEEDcertifiedhomesandbusinesses.3.b.1.Localgovernmentsincentivizegreenenergyefficientbuildingdevelopmentprojectswithexpeditedreduced‐ratepermitting.3.b.2.TheNRVEnergyCommitteeorothergroupinventoryandcommunicatesuccessfulcurrentandfutureenergyefficientdevelopmentintheregion.3.c.Enhancewalkabilitythroughpedestrian‐friendly,compact,andmixeduselanddevelopment3.c.1.Localgovernmentsadoptplanning,incentive,and/orregulatorypoliciesforurbanizingdevelopmentnodesthatprovideformixeduse,density,andpedestrian‐friendlycompactdevelopment.3.c.2.TheNRVEnergyCommitteeorothergroupinventoryandcommunicatesuccessfulcurrentandfuturemixeduse/pedestrianfriendlydevelopmentintheregion.3.d.Improveintra‐andinter‐communityandregionaltransitopportunitiesintheNRV3.d.1.Continuetosupportexistingtransitsystemsandexpandtheirserviceaspossible3.d.2.Supportexistingtransportationlinksoutsidetheregion,includingtheSmartWayBusandMegaBus.3.d.3.SupportpassengerrailservicetoRoanokeandoncecompletetoRoanoke,supportpassengerrailextensiontotheNRV.3.e.AnticipatethegrowingelectricvehiclemarketbydevelopinganetworkofpublicandprivateEVchargingstationsintheNRV

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4. ReduceEnvironmentalImpactofEnergyUseTheenvironmentalimpactofcurrentpatternsofenergyuseisoneofthestrongestmotivatingfactorsforcleanenergyintheNewRiverValley.IntheLivabilityInitiative’scommunitysurvey,respondentscitedenvironmentalprotectionasthetopenergypriority,andtheyrankeditsecondbehindefficiencyandconservationasthetopenergygoal.Allenergysourcescausesomeenvironmentalimpact.Energyefficiencyimprovementsandconservationbehaviorreduceneededsourceenergyandthushavethegreatestenvironmentalbenefit.Recallthatefficiencyandconservationarenotthesame.Energyefficiencyimprovementsprovidethesameenergyfunctionwithlessenergy.Forexample,anLEDlightbulbwillproducethesamelightasanincandescentbulbbutwith1/10ththeenergy;andsealingairleakageandinstallinginsulationwillresultinlessheatingenergytokeepahouseatthesamethermostatsetting.Ontheotherhand,energyconservationaimstoreduceenergywastethroughsmartconsumerbehavior.Forexample,turningoffthelightswhentheyarenotneededorturningdownthewinterthermostatwhennotathome.Fossilfuelsourcesgenerallyhavethegreatestenvironmentalimpactfromtheirextraction,transportation,processing,andespeciallycombustion.• Coaluserequiresminingimpactsonlandandwaters,processingandtransportimpacts,andpowerplantemissionsofsulfuroxides,nitrogenoxides,mercury,fineparticulates,andcarbondioxide.• Petroleumproductsrequireextractionandtransportimpactswithrisksofwell,tankerandpipelineleaks;refineryemissions;andproductcombustionemissionsoffineparticulates,volatileorganiccompoundsandnitrogenoxidesthatproduceozonesmogincommunities,aswellascarbondioxide.• Naturalgasextraction,especiallyusingnewhydrofrackingmethods,hasarangeofpossibleimpactsonwaterandfugitiveemissionsofmethane,apotentgreenhousegas.Althoughnaturalgascombustiondoesproducenitrogenoxideemissions,ithaslessimpactonglobalwarmingandclimatechangethancoalandoil.Perunitofenergy,naturalgasemitsabouthalf(57%)theCO2ofcoaland75%oftheCO2ofpetroleumproducts.Environmentalprotectionrequirementshavebeeninstitutedtoreducetheseimpacts.Forexample,since2005,APCOinvested$2billioninsulfuremissionscontrolsatitspowerplantsandthatledtosignificantincreasesinourelectricityrates.Still,remainingimpactsoffossilfuelsonairquality,climatechange,waters,andland,aresignificantandarenotincorporatedintothepriceofthisenergy.Thecostsassociatedwiththeseimpactsarenotbornebytheproducersorconsumersofthisenergy,andtheyamounttoahugeenvironmentalandsocialsubsidyofthesefuels.Potentiallythehighestriskimpactoffossilfuelsresultsfromtheiremissionsofcarbondioxideandmethane.Thesegreenhousegases(GHG)arethemaincauseofglobalwarmingandclimatechange.Climatechangeispredictedtocausesignificantimpactsonhumanpopulationsfromsealevelriseandcoastalflooding,extremeweathereventsincludingextremeheatepisodes,shiftingecosystemsandagriculturalproductivity,

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amongothers.Theseeffectsarelikelytoposesevereconsequencesformanycommunitiesthroughouttheworld,especiallycoastalcities.TheNRVisblessedtobeonhighgroundandtheconsequencesofclimatechangearelikelytobelesssevereherethanmostplacesinVirginia,theU.S.,andtheworld.Butthisisaglobalproblemthatrequireslocalaction,anditisoneofthestrongestdriversforcleanenergy.CleanenergyreducesGHGemissionsoffossilenergyandmitigatestheimpactofenergyonclimatechange.Thisiswhytheglobalenergymarketsaremovingtowardcleanenergy,andwhythosecountries,states,andregionsthatdevelopcleanenergyarelikelytobemorecompetitiveinthefuturelow‐carbonenergyeconomy.SoeventhoughtheconsequencesofclimatechangearelikelytobelesssevereintheNRV,theregionshoulddevelopcleanenergyforthesakeoftheglobalenvironmentaswellasforitsowneconomiccompetitiveness.Cleanenergyincludesenergyefficiency,conservation,andlow‐carbonsources,especiallyrenewableenergy.Asmentionedefficiencyandconservationhavethegreatestenvironmentalbenefitastheyreducetheneedforsourceenergy.Renewableenergysourceshavesomeenvironmentalimpact,butthesearegenerallydifferentandfarlessthanfossilenergysources.Forexample,• SolarPVandwindpowersystemsaremanufacturedandcausemanufacturingimpactsonairandwater.• Windgeneratorsmustbelocatedaboveobstructingtreesandbuildingsandcanbeseenfromafar.Somepeopleseethemasablightonthelandscape,likecommunicationstowers;othersseethemmorepositivelyasadramaticrepresentationofcleanenergy.• Windsystemscancausenoiseandcanimpactbirdsandbats,butifproperlysited,theseimpactscanbeminimized.Infact,comparedtoimpactscausedbybuildingsanddomesticandferalcats,windsystemimpactsonbirdsandbatsareverysmall,evenwithexpandeddevelopment.• Renewablebiomassfueliscombustedlikefossilfuelsandproducesairemissionsincludingcarbondioxide.However,theircarbonemissionsareconsidered“climate‐neutral”sincetheircarbonisnot“fossil”andwasrecentlyintheatmosphereasCO2,andthusispartofthecontemporarycarboncycle.EnvironmentalProtectionObjectivesandStrategies 4.a.Improveenergyefficiencyinbuildings,industry,andtransportationtoreducecradle‐to‐graveenvironmentalimpactofenergysources.4.a.1.ImplementstrategiesunderPrinciples3and5.4.b.FosteracultureofconservationintheNRVtoreduceenergywastethroughimprovedenergyconsumingbehaviorbyconsumers,households,businesses,andinstitutions.4.b.1.Developandimplementeducationandoutreachprogramsinpublicschoolsandcivicorganizationsonreducingenergywastethroughenergyconservingbehavior4.c.Replacehigh‐impactenergysourceswithlow‐impactenergysources4.c.1.Encourageutilityproviderstotransitiontolow‐impactenergysources4.c.2.DevelopdistributedrenewableenergysystemsintheNRV(seePrinciple6).

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5. ImproveEfficiencyofBuildingsstartingwithExistingResidentialBuildingsBuildingandResidentialEnergyandtheOpportunitiesforEnergyRetrofitIntheU.S.,buildingsconsume¾oftheelectricityandmorethan40%oftotalenergy.TheNRVenergyprofileshowedasimilarbreakdown,andresidentialconsumptionistheprimedriverofrisinghouseholdenergycosts.Overall,Virginiapercapitaenergyuse,once20%lowerthanthenationalaverage,isnowthesameasthenationalaverage,drivenbya60%riseinresidentialusepercapitasince1960.Asshowninfigure6.5,thatis12%abovethenationalaverage(MurrowandKrasnow,2012).

Figure 6.5 Residential energy use per capita in the U.S. and selected states (Murrow and Krasnow, 2012  

EnergyefficiencyinnewconstructionisregulatedbytheVirginiaUniformBuildingCode(VUBC).LocalcodescannotexceedtheVUBC.TheenergycodehasbeenupgradedtonewInternationalEnergyConservationCode(IECC)guidelineseverythreeyears,providingasteadyimprovementinnewbuildingsefficiency.The2012IECCstandardswouldincreaseresidentialhousingefficiencyby15%comparedtocurrentVUBCbasedonIECC2009.However,theVirginiaBoardofHousing&CommunityDevelopment(BHCD)hastentativelydecidednottoincludethefullrangeofIECCefficiencyimprovements(RT,2013).ThisPlancallsforcontinuingfulladoptionoftheIECCupgradedefficiencyimprovementsintheVUBC.Inaddition,thePlancallsfordesigningandconstructingnewbuildingsbeyondtheenergycoderequirementstoEarthCraft,EnergyStar,andLEEDstandards,wherepossible.Thesefeaturesreduceenergyconsumptionfurtherandsavefutureenergycostmorethroughsmalladditionalinvestmentsinnewconstructionthatareverycost‐effective.Existingbuildingsareanothermatter.Energybuildingcodeswerenotimplementeduntilthemid‐1970s.Olderbuildingsarepoorlyinsulatedandveryinefficientcomparedtocurrentstandards.HalfofNRVhousingunitswerebuiltbefore1974and¼werebuilt