Below is an interview with Celeste Cizik, the President and CEO of Group14, on the results of our Financial Impact Assessment, initiated by DPS’ Director of Sustainability LeeAnn Kittle, using funds provided by the 2016 bond reserves.
The firm was hired to complete the assessment as detailed and defined by Director Kittle in order to reach district-wide sustainability goals. Please read on to learn more about this exciting recent collaboration.
I hear you’re B Corp certified, can you explain what that means, and what other certifications do you all have?
B-corp is a nonprofit network with a goal of making “Business a Force For Good”. What it means for us is having priorities beyond shareholder profit – we make sure we’re thinking about our people, our environment, and our community.
We also hold the “Just” label which evaluates organizations on socially just and equitable criteria.
These systems have helped document the practices we have always held as important from having a strong environmental focus to volunteering in our community. It also helps to communicate and share externally through B-Corp networks and awards such as Best for the World which Group14 received in 2022.
What is a financial impact assessment?
A “financial impact assessment” in general is an evaluation of the first costs and ongoing costs associated with a project or program. In this specific case, it was led by LeeAnn Kittle, the Director of Sustainability for Denver Public Schools, to assess the impact and costs of the actions needed for DPS’s existing buildings to achieve the goals set forth in the Climate Action Plan.
DPS students called for district wide action to meet climate goals, and we looked at different elements that need to be accomplished in order to reach those goals. The DPS goals are based on the state of Colorado’s current goal to reduce greenhouse gas emissions 90% by 2050 and the City of Denver’s goal to achieve 100% renewable energy for electricity by 2030.
The financial analysis included the upfront implementation costs and the ongoing operational cost impact for the school district. The study incorporated information from previous work including the Facility Conditions Assessment (FCA) and the Cooling/Controls Assessments.
The assessment evaluated energy efficiency, electrification, and renewable energy measures which are all needed to meet the goals. Efficiency measures included recommended upgrades such as equipment replacements and controls upgrades identified through the FCA. The potential energy and operating cost reduction of these energy measures was quantified to convey the ongoing economic benefit for the district. We also evaluated efficient electrification at key points including equipment replacement and installation of new cooling systems. Electrification is a key component of a decarbonization strategy since it allows heating to be accomplished with clean renewable energy.
Renewable energy was also evaluated since it is a critical strategy to reduce emissions and achieve 100% renewable energy for electricity by 2030. This includes the greening of the Xcel Energy utility grid and solar PV owned or purchased by DPS through off site programs. The findings indicate that the existing rooftops are large enough to meet the requirements if onsite solar PV is pursued.
What is exciting about this work is that it attaches real world projects to climate goals. Many organizations and governments are setting strong goals but many are not evaluating the actual projects needed to accomplish these goals. This assessment is an important next step to understand the projects that are needed, how much it will cost, and when changes should be considered. In addition to planning for long term goals, the assessment included recommendations for efficient electrification that can be applied directly to upcoming bond funded cooling upgrades.
Reducing the impact of the built environment has been my mission and focus since college. I participated in the DOE sponsored Solar Decathlon event during my architectural engineering program at CU Boulder which helped solidify my passion to use engineering to benefit the planet. I have been fortunate to have dedicated my career to this passion and am excited to be a part of the growing movement to combat climate change.
Have you worked with other school districts on this type of work before or is this unique?
We have performed a variety of similar elements for other school districts such as energy audits to reduce energy consumption or energy modeling to improve school designs. Energy Savings Performance Contract (ESPC) projects are another good way to accomplish both efficiency and renewable energy projects. However, this plan is more forward thinking than others we have seen with a long time horizon and a holistic focus on meeting climate goals. We expect this type of assessment to become more common as organizations adopt stronger goals and local policies require action.
This assessment is an important step for the district to begin planning for the necessary actions. The results show a high cost to achieve the goals which will require capital planning. Designs for new schools and system replacements should also incorporate changes now to align with future goals.
DPS students called for district wide action to meet climate goals, and we looked at different elements that need to be accomplished in order to reach those goals. The DPS goals are based on the state of Colorado’s current goal to reduce greenhouse gas emissions 90% by 2050 and the City of Denver’s goal to achieve 100% renewable energy for electricity by 2030.
Why are you passionate about sustainability?
Reducing the impact of the built environment has been my mission and focus since college. I participated in the DOE sponsored Solar Decathlon event during my architectural engineering program at CU Boulder which helped solidify my passion to use engineering to benefit the planet. I have been fortunate to have dedicated my career to this passion and am excited to be a part of the growing movement to combat climate change.
There has been a significant shift in the building energy engineering world from an economics driven focus on cost savings to a deeper evaluation of the actions needed to reduce emissions and decarbonize buildings. It’s wild to think that our team won the solar decathlon competition in 2002 with a fully operational all electric net zero home with a heat pump, induction stove top, and plug-in electric car. It has taken over 20 years for these technologies to become more common in commercial building designs in the US but we are excited to see these changes coming. Beyond energy and emissions, Group14 is also excited to see the growing focus on designing our buildings for occupant health and well being.
What is exciting about this work is that it attaches real world projects to climate goals. Many organizations and governments are setting strong goals but many are not evaluating the actual projects needed to accomplish these goals. This assessment is an important next step to understand the projects that are needed, how much it will cost, and when changes should be considered.
How will the financial impact assessment help drive future conversations for our district?
The assessment included specific recommendations for efficient electrification by school and individual equipment types. The cost delta was reasonable compared to the overall cost of the planned equipment replacement and addition of cooling. These recommendations could be implemented with current and future bond projects.
For the greater portfolio study, we hope there is an increased focus on implementing equipment upgrades that are much needed for both operational reliability and energy reduction. While it is a big investment, DPS schools need efficient equipment that can provide a healthy indoor environment for the students. The renewable energy approach is also an important conversation to plan the strategy and secure resources for implementation.
Highly efficient heat pumps are an important focus for all organizations trying to achieve strong climate goals. We hope there are discussions around incorporating at least partially electrified heating equipment at key points including new school construction, major renovations, or equipment upgrades. The equipment installed in 2025 will likely still be in place in 2040 and beyond so it is important to make changes for projects now that will align with climate goals. Replacing old natural gas equipment with new efficient heat pumps will improve space comfort, provide better control, and allow for proper ventilation.
The measures needed to achieve DPS’s climate goals will require deep retrofits and system conversions that go beyond cost effective energy measures. There will need to be conversations that go beyond the cost economics and consider the cost per metric ton saved in order to move forward.
This assessment is an important step for the district to begin planning for the necessary actions. The results show a high cost to achieve the goals which will require capital planning. Designs for new schools and system replacements should also incorporate changes now to align with future goals.
How did you collaborate with our Director of Sustainability, LeeAnn Kittle?
LeeAnn was great throughout the whole process. We collaborated from the beginning to determine how the assessment should be structured and what the key focus areas should be. She also connected us with DPS stakeholders to help everyone understand the project and convey the message.
LeeAnn also helped to coordinate between the Climate Action Plan developed in parallel by Lotus Engineering and Sustainability. There was significant crossover to align the emissions baseline, future goals, and the emissions impacts that could be achieved through the measures recommended for buildings.
“While developing a district-wide climate action plan, I recognized quickly the importance of understanding any economic impacts be it cost savings or premiums toward these climate action goals. We not only wanted to have the right data but to ensure it is utilized within our capital planning and inform all stakeholders. In my experience, data turns discussions into decisions and at the end of the day our team’s mission is environmental protection, social development, and economic prosperity. Approaching these goals with fiscal responsibility is imperative in supporting tax payer dollars and collaborating with internal stakeholders. We are very pleased with Group14’s assessment,” said Director Kittle.