12-02-2024 JDA Agenda Packet - Laserfiche WebLink

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a. Recommendation for Clean Energy Policy Ms. Mitchell stated green energy and sustainability have long been key components of the vision for Rice Creek Commons: • 2014: The JDA established the Environmental Resiliency Advisory Board (ERAB), which defined the original Energy Vision and Guiding Principles for Rice Creek Commons. • 2015: The ERAB presented and the JDA accepted the Energy Integration and Resiliency Framework (EIRF), which set a vision to create the largest net-zero energy redevelopment in the state and outlined plans for on-site renewable energy generation and all-electric residential development. • 2016: Alatus LLC selected as lead developer. • 2023: o Energy Advisory Committee (EAC) convened and refreshed the Green Energy Vision. o Alatus reaffirmed as lead developer for the California Parcel. o Ryan Companies selected as developer for Outlot A. Ms. Mitchell explained changes since the JDA adopted the Energy Integration and Resiliency Framework in 2015 make its ambitious vision even more achievable than when it was originally set. Some key changes include: State clean energy policy: In 2023, the Minnesota state legislature established that electricity in Minnesota must be carbon-free by 2040, meaning that utilities such as Xcel must use only clean sources that do not emit carbon dioxide, including renewable energy like wind and solar. This new reality has shifted the focus of many in the industry from “net-zero energy” to “carbon-free”. Net-zero energy was an important goal when the electric grid was largely powered by carbon-intensive sources. However, now that the entire Minnesota electric grid will be carbon-free by 2040, simply building an all-electric development will achieve most of the greenhouse gas emission goals. Ms. Mitchell reported advances in green energy technologies: Energy-efficient building design, renewable energy technologies, ground-source heat pumps, electric vehicle infrastructure and a high demand for a sustainable built environment have made sustainability strategies the standard for many developers these days. Many of these technologies have advanced so much that they are now the most cost-effective solutions available. New financing sources for green energy: The federal Inflation Reduction Act (IRA) has completely changed the financial feasibility of sustainable development by providing generous incentives for green energy systems and other sustainability measures. Preliminary analysis of the current development plan suggests that large portions of the green energy systems will be eligible for a 40% rebate from the federal government, making a strong financial case for installing these systems, on top of the environmental case. Ms. Mitchell reported in 2023, the JDA engaged Ever-Green Energy and LHB to analyze the feasibility of implementing the Green Energy Vision, taking into account changes to the development plan and technology and financing advances since the EIRF was completed. This