district heating applications and the advantages of district heating systems. URBAN CHARACTERISTICS AFFECTING CONSERVATION OPTIONS The conservation options to be considered include improving the thermal envelope (or structure) of buildings, use of renewable natural resources such as solar and geothermal energy, use of more plentiful domestic fuels, and recovery of energy from refuse and waste heat. The characteristics of high density urban areas limit the feasibility of many of these options. It is estimated that 45% of commercial and 65% of residential floorspace that will exist in the year 2000 already existed in 1980. This affects the practicality of improving the thermal integrity of individual buildings because such conservation programs will require extensive retrofit measures. Retrofit conservation measures are more expensive than when implemented with a new building design, and the types of conservation measures that can be used are more limited. There are low-cost quick-payback measures that should be used before considering any other option, including more efficient management of building operation, decreased lighting levels, and improvements in air handling systems and controls. An analysis of engineering audits at Minnesota state-owned facilities indicated improvements to the thermal envelope had very long payback periods, an average of 23 years, and would provide only about eighteen percent of the energy saving possible by implementing all measures considered. High density urban areas are very unlikely candidates for use of renewable energy sources. The availability of land and roof top area of highrise buildings is too limited to supply much of the building's thermal demand with individual-building solar collectors. It is also unlikely that geothermal energy, groundwater or ground coupled heat pumps, or wind energy could be used as individual building systems to any large extent. Excluding the scarce fuel sources (natural gas and oil), the remaining options include coal, nuclear power, urban waste, and industrial waste