Norbert Klebl – Golden Real Estate's Blog

Crested Butte Bans Natural Gas in New Construction — A New Statewide Trend?

Given our commitment to addressing climate change, one of my favorite email newsletters is “Big Pivots,” written by Allen Best of Arvada, The mission of his non-profit is to document, understand and educate about the changes made necessary by climate change.

Among those changes is the transition from fossil-fuel heating of homes and water using natural gas and propane now that electric heat pump units are practical and affordable.

The latest Big Pivots email newsletter (which you can subscribe to at bigpivots.com) was about Crested Butte’s recent decision to outlaw natural gas in new construction. Rather than rewrite what Allen wrote, here is his article with some minor edits:

By ALLEN BEST

Crested Butte, a one-time coal mining town, has now turned its back on natural gas. Town councilors unanimously agreed that any new building erected on the 60 vacant lots cannot be served by gas. Major remodels must be electric-ready. It’s Colorado’s first natural gas ban, although 80 other jurisdictions around the country have taken similar measures.

“There was a lot of talk at council about it being a bold decision, but I don’t see it that way,” said Crested Butte Mayor Ian Billick. “Not only is it what we need to do, but we have all the tools to do it cost effectively.”

Billick arrived at Crested Butte several decades ago as a biologist at the nearby Rocky Mountain Biological Laboratory. Many experiments there have focused on the effects of warming temperatures on existing plants. One experiment involving year-round heat lamps specifically foretells a shift from the showy wildflowers for which Crested Butte is famous to an ecosystem dominated by sagebrush.

Temperatures continue to creep higher, but at more than 8,900 feet in elevation, Crested Butte still has chilly winters. The overnight temperature during January averages 6 below.

The takeaway here is that if Crested Butte is comfortable with the replacement technologies for natural gas, most other places in Colorado should be, too. Instead, builders are still tethering tens of thousands of homes and other new buildings each year to natural gas pipelines.

Denver and Boulder have taken steps to push alternatives. Here and there individual action has occurred. In Westminster, John Avenson in 2017 ordered his natural gas meter removed after maximizing the passive solar potential of his house. (YouTube video tour of John’s home.) In Arvada, Norbert Klebl developed 30 homes without natural gas in a project called GEOS. In Basalt, two affordable housing complexes have been built without natural gas. An all-electric hotel is under construction in Snowmass. North Vista Highlands is slowly taking shape in Pueblo. In Fort Collins, plans have been drawn up for Montava, a 500-unit project.

We have been pivoting slowly, but the transition is accelerating.

Granted, the generation of electricity still causes atmospheric pollution. Emissions will dramatically drop by 2030, however, as Colorado’s utilities close nine of today’s 10 coal-burning units.

Colorado legislators in 2021 passed several laws that collectively seek to squeeze emissions from our buildings. The laws reflect the state’s political makeup. Colorado may be dominated by Democrats, but it’s still a purplish state. In other words, don’t expect a wave of Crested Butte-type mandates such as occurred in California beginning in 2019. We walk on a different balancing beam.

Most important among Colorado’s legislative squeezes is Senate Bill 21-264, which requires Colorado’s four regulated natural gas utilities to incrementally reduce emissions.

The law identifies several pathways. They can, for example, help customers improve efficiency of buildings, so buildings need less gas to provide comfort. They can augment the methane obtained by drilling with methane diverted from sewage plants, feedlots and other sources. The first of their plans will be filed with state regulators in 2023. The bottom line is that the gas companies will have to adjust their business models.

The Colorado Public Utilities Commission has now set about creating rules for evaluating clean-heat plans. In filings beginning last December, real estate agents, home builders and even some municipalities have argued that converting from natural gas will add costs. That was the same message at recent meetings in Montrose and Grand Junction. Their message was simple: Don’t change.

In metro Denver’s more affluent northwest suburbs, Christine Brinker of the Southwest Energy Efficiency Project reports a draft policy would give builders a choice between either all-electric or natural gas with extra energy efficiency.

Unless a way can be found to cost-effectively sequester carbon emissions, natural gas will slowly be phased out in coming decades. Ironically, the arrival of natural gas was one reason that coal mining ended in Crested Butte in 1952 after a seven-decade run.

Arvada’s Net Zero Energy Geos Community Faces a Challenge From New Developer

The Geos Community located southwest of Indiana Street and 72nd Avenue in Arvada is a shining example of what’s possible in net zero energy home construction.

All Geos homes are solar powered and have no natural gas service. Heating and cooling is provided by ground source or air source heat pumps. Water heaters utilize heat pumps, not gas, and all the homes and townhouses are built according to passive solar design standards.

Two Geos homes were on last fall’s Metro Denver Green Homes Tour, and you can view narrated video tours of them by clicking on that link.

Now a developer has bought the remaining land within the Geos Community but is intending to install natural gas service in all the homes they will build. Naturally, the current residents are quite upset about this turn of events and are hoping to convince the City of Arvada not to allow this diminution of the original intent of Geos to be a strictly net zero energy community.

Visit www.DiscoverGeos.com to appreciate this community’s net zero energy mission.

Rainer W Gerbatsch, a Geos resident, in an email to Linda Hoover, Senior Planner for the City of Arvada, expressed concern about the new developer’s plan to deviate from the community’s principles by installing natural gas in future homes. Here is Ms. Hoover’s emailed response:

Thank you for your strong interest in your community. I was forwarded your concerns regarding the new upcoming development in the GEOS Neighborhood and I will do my best to address your comments. The GEOS Development was approved 12 years ago. I took over as the staff planner for this project in 2014 when the previous planner left the City. When GEOS was approved, it was intended to be a sustainable community and Norbert Klebl tried for many many years to obtain the funding to make that happen. To date, the only homes constructed out there are on Block 10 which has a mix of the staggered “checkerboard” single family detached homes and townhome units. This totals approximately 38 units out of the 282 planned. While the existing homes have a number of sustainable features, SunStudios (Architect) and Laudick Engineering are telling us that marketing of this concept has been very difficult in part due to the economics of having a development without gas service and other unique features of this development, such as having custom designed mechanical heating systems, etcetera. Most of the larger home builders want developments that have gas service. As you may know, this development went through a bankruptcy last summer. The new owners are currently in the process of working with a new builder – Dream Finders Homes. As Dream Finders comes on board, they are planning on keeping many of Norbert’s original concepts, but wanting to make some adaptations to make it economically feasible. The lot layout which has the staggered checkerboard placement of single family detached homes in the middle of the block and townhome units on the ends of the block will remain as originally intended. As a result these homes will continue to have the same architecture and passive solar design. In addition, solar panels will be placed on the rooftops and appliances will be energy efficient. These new homes will follow the Building Code to construct energy efficient homes. The building codes adopted by the City already allow various paths/choices to construct very efficient (minimum energy code) all the way to net-zero buildings – the traditional codes were followed to build the first 38 units. It is my understanding that DreamFinders would prefer to have the project served by gas, but are still looking into the economics of this issue.

This development was and still is zoned PUD (Planned Unit Development) which has its own unique design requirements rather than following the standards in the City’s Land Development Code (LDC). The GEOS Design Book states that “architecture should strive for Energy Self-Sufficiency and the avoidance of Fossil Fuels.” It also identifies net zero homes as one of the intended goals (not requirements) and further clarifies that that “goal can be achieved by combining good solar orientation and good insulation with geothermal or solar thermal heat, and photovoltaics.” However, it is silent on the issue of gas service.

As a result, we would allow the development to be built without gas service (just as was done for the first phase of GEOS) provided alternatives were ensured. However, no restrictions were included in the Design Book or on the project approvals that prohibited gas service. Passive systems, energy efficient buildings, heat recovery ventilation are guidelines not requirements.
Sent 5/13/2021

Here is Rainer’s response to Ms. Hoover’s email:

I am familiar with the background of GEOS and the more recent events. Contrary to your statement that net-zero homes are difficult to sell, recent sales activity of homes in GEOS show just the opposite – there is high interest in these homes resulting in higher than expected returns for the seller and very short listing periods. It would appear that cited developer/builder statements are either uninformed or demonstrate an unwillingness to engage in construction practices that are a win-win situation for the builder, the buyer, and perhaps most importantly, the environment we all rely on. Also, I contacted and asked the architect whether he supported the cited developer/builder statements, and he responded that he did not.
Studies of completed net-zero buildings in Colorado (including GEOS) conducted by SWEEP also show that the initial cost of net-zero, all-electric homes at this time is on par with so-called traditional (polluting) construction. Net-zero construction represents a clear choice once future buyers understand that (1) these homes represent (already at this time) substantial yearly savings in energy use/expenditures (fossil fuel based energy costs will only increase as the cost of natural gas escalates based on the need to curtail and ultimately eliminate gas as a potent driver of climate change), and (2) eliminate health risks related to exposure to gas appliances and fossil-fuel burning heating devices that generate a variety of air pollutants which have been linked to cancer, decreased lung function, heart disease and a host more diseases. While these risks have been recognized for some time, they are finally receiving mainstream media attention. However, resolution is not possible without the engagement of all levels of government with developers/builders on more responsible construction practices. In summary, net-zero construction is currently superior to traditional construction because of reduction in emissions, elimination of health issues traced to fossil fuel based energy use in homes, and escalating future costs of fossil fuels, particularly natural gas.
GEOS’ prominence as a leader in de-carbonized and sustainable community living is recognized locally (we have been visited by members of sustainability committees of several Colorado towns), and nationwide (CNN’s chief environmental correspondent Bill Weir visited GEOS; CNN will be airing a nationwide broadcast on GEOS, highlighting its features as the model for home construction to achieve decarbonization and healthier interior air quality for residents). In that vein, responsible governments on all levels are preparing and committing to road maps with the goal to rapidly reduce emissions in home construction through elimination of fossil fuels, increased efficiency in appliance/lighting and heating/cooling, as well as the production of on-site renewable energy. In order to have an effective road map, commitments are required which mean nothing less than elimination of fossil fuel use in all new buildings. Consider that the IEA has just issued a special report; this statement stands out: Fatih Birol, the IEA’s executive director and one of the world’s foremost energy economists, told the Guardian: “If governments are serious about the climate crisis, there can be no new investments in oil, gas and coal, from now – from this year.”
It is 2021, and permitting a developer/builder team the inclusion of natural gas infrastructure for about 250 new homes, based on questionable developer/builder concerns of perceived marketability or economics, thereby locking in emissions for the life of the buildings, subjecting owners to health risks related to gas pollutants and escalating energy costs (not considering future mandated retrofits based on the trajectory of climate induced changes), is not responsible, sets the wrong signal and constitutes a serious setback in rising to the challenges of the climate crisis.
The City of Arvada has the opportunity and responsibility to address the climate crisis, facilitate the transition from fossil fuels to renewable energy, and protect the health of residents from natural gas pollutants. Both can be realized, simply and effectively, through rapid adoption of policies and building codes that support state and nationwide goals in emission reductions. We urge you to demonstrate your commitment to a sustainable future not only through elimination of the fossil fuel infrastructure for the next phase(s) of GEOS, but through a city-wide commitment to net-zero construction, fossil-fuel free construction.
Sent 5/20/2021

Interested in Net Zero Living? Discover Arvada’s Geos Community!

I love showing homes in Arvada’s Geos Community to buyers individually, but there’s a live Zoom presentation sponsored by First Universalist Church of Denver next week which will teach you all you need to know about this great community.

The homes and townhouses in this community are not only “net zero,” they are “net positive,” creating more energy than the homeowners use, including when they charge an electric car. The homes are so well insulated that they need no furnace, only a CERV, which also monitors and maintains indoor air quality.