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HomeMy WebLinkAbout19-City Manager CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Charles McNeely Subject: Resolution Authorizing the Reprogramming of Certain Energy Efficient & Conservation Block Gmnt Funds and the Creation of an Energy Efficient Retrofit Grant Program using EECBG Funds.. Dept: City Manager's Office Date: December 9,2010 Meeting Date: December, 20 2010 Synopsis of Previous Council Action: June 15,2009: Mayor and Common Council authorized the initial application for $250,000 for the development of the Energy Efficiency & Conservation Strategy and associated projects and programs to be funded through the EECBG Program. November 5, 2009: Mayor and Common Council authorized the execution of a contract with ABC OM for the development of an Energy Efficiency & Conservation Strategy (EECS) as well as the development of a larger Climate Action Plan. February 1, 2010: Mayor and Common Council authorized the submittal of the Energy Efficiency and Conservation Strategy and application for the remaining $1,704,600 for programs and projects to be funded through the Energy Efficiency and Conservation Block Grant Program. Adopt resolution. Recommended motion: Contact person: Debra Kurita Phone: 384-5122 Supporting data attached: Staff Report, Resolution Ward: All Wards FUNDING REQUIREMENTS: Amount: Nt A Source: Finance: Council Notes: Agenda Item No. /1 I:J...:;O - dol () CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT Subject: Adopt Resolution Authorizing the Reprogramming of Certain Energy Efficient & Conservation Block Grant Funds and the Creation of an Energy Efficient Retrofit Grant Program using EECBG Funds. Backe:round: On February 17, 2009 President Barack Obama signed into law the American Recovery and Reinvestment Act (ARRA) of 2009. The ARRA allocates funding to many programs, including health care, energy, infrastructure, education, and public safety. The total funding allocation of $828 billion consists of: $396 billion for upgrades to transportation, infrastructure, construction, health care programs, education and housing assistance, and energy efficiency projects, $288 billion in personal and business tax credits, and $144 billion in state and local fiscal relief. One of the new programs receiving funding from ARRA is the Energy Efficiency & Conservation Block Grant (EECBG) Program. The EECBG provides grants to U.S. local governments, states, territories, and Indian tribes, to fund projects that reduce energy use and fossil fuel emissions, and that improve energy efficiency. The EECBG Program received $3.2 billion in nationwide funding; of that, $2.8 billion was made available as direct allocation grants to cities, counties, states and Indian tribes; the remaining $400 million will be made available through a competitive grant process. The City of San Bernardino received a direct allocation of $1,954,000. On June 15, 2009 the Mayor and Common Council authorized the application of the City of San Bernardino's initial allocation of $250,000 for the development of an Energy Efficiency & Conservation Strategy (EECS) as part of the City's larger $1,954,600 allocation from Department of Energy. The complete list of approved projects and the budgets are included in this report as Attachment A. One of the eleven projects authorized by the Mayor and Common Council was intended for the development of a Regional AB 811 Program. This program would have created a Joint Powers Authority with the County of San Bernardino for the purposes of financing energy efficient, renewable energy and water conservation projects of property owners within the City. This type of program has successfully been implemented in cities such as Palm Desert, Yucaipa, Sonoma County and Berkeley. Additionally, 23 other states have adopted similar legislation allowing for these types of programs, known nationally as Property Assessed Clean Energy (PACE) Districts to be formed in cities and counties throughout the United States. However, in July 2010, the Federal Housing Finance Agency (FHFA) announced their opposition to PACE programs citing "safety and soundness" concerns related to the lack of underwriting criteria and the senior placement of the liens above the first mortgage. This action led to the cancellation or postponement of nearly all PACE programs in the country. Subsequently, there have been multiple lawsuits filed against FHFA and two pieces of legislation introduced requiring FHF A to work with the Department of Energy to develop appropriate underwriting criteria to allow these programs to continue. As a consequence of this action staff recommends reprogramming these funds to an activity that can be implemented within the required timeframe as well as to achieve similar results to those that would have occurred had the AB 811 Program been implemented. As a result of its analysis, staff is recommending that the funds allocated for the AB 811 Program development be reprogrammed towards the development and implementation of an Energy Efficient Retrofit Grant Program. The proposed program would provide grants to homeowners to conduct energy efficient audits to identify the most effective types of retrofits to achieve substantial energy savings. Staff is also proposing to use locally trained energy auditors and contractors to deliver these projects to ensure the most amount oflocal benefit as possible. The program will consolidate the Commercial & Residential Energy Efficiency Auditing and Rebate funds and the AB 811 Program funds into a single activity to be used for the implementation of the Energy Efficient Retrofit Grants. Depending on the ultimate size of the grants offered, it is anticipated that approximately 50 grants to homeowners in San Bernardino will be issued. Upon authorization of the reprogramming of funds, staff will prepare and release a request for proposal for the development of Energy Efficient Retrofit Grant Program. This item was heard by the Grants Committee on November 30, 2010 and received a unanimous vote to proceed to the Mayor and Common Council. Fiscal Impact: There is no impact to the General Fund. Funds will be reallocated from the three previously approved programs; Residential Energy Efficiency Auditing and Rebate and Commercial Energy Efficiency Auditing and Rebate and AB 811 Program into a single activity - Energy Efficient Retrofit Grant Program Recommendation: Adopt Resolution Authorizing the Reprogramming of Certain Energy Efficient & Conservation Block Grant Funds and the Creation of an Energy Efficient Retrofit Grant Program using EECBG Funds. Attachments: A. Complete List of Approved EECBG Funded Projects. B. Project Activity Sheet 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA BERNARDINO AUTHORIZING THE REPROGRAMMING OF CERTAIN ENERG EFFICIENCY AND CONSERVATION BLOCK GRANT FUNDS PROGRAM AND TH CREATION OF AN ENERGY EFFICIENT RETROFIT GRANT PROGRAM USIN EECBG PROGRAM FUNDS. WHEREAS, On February 17, 2009 President Barack Obama signed into law th American Recovery and Reinvestment Act (ARRA) of 2009 and, WHEREAS, one of the new programs receiving funding from ARRA is the Energ Efficiency & Conservation Block Grant (EECBG) Program to fund projects that reduce energ use and fossil fuel emissions, and that improve energy efficiency and, WHEREAS, the EECBG Program received $3.2 billion in nationwide funding; of that the City of San Bernardino received a direct allocation of $1 ,954,600 and, WHEREAS, the City of San Bernardino received approval by the Department of Energ to utilize $660,982 of its EECBG funds for three programs: I) Establishment of Regional AB 811 JP A; 2) Residential Energy Efficient Audit and Rebate Program; 3) Commercial Energ Efficient Audit and Rebate Program and, WHEREAS, due to regulatory rulings by the Federal Housing Finance Agency, the thre approved projects can no longer be implemented and, WHEREAS, to ensure the intent of these funds to reduce energy consumption in th home and put local contractors back to work, a newly created energy efficient residential retrofi grant program will be created. -1- 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMO COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 2 3 SECTION 1. That the Mayor and Common Council of the City of San Bernardin 4 5 6 7 8 authorize the reprogramming of $660,982 of EECBG funding and authorize the submittal of Project Activity Sheet (Attachment B) to the Department of Energy for the creation of an Energ Efficient Retrofit Grant Program. SECTION 2. The City Manager, or his designee, is hereby authorized to execute i 9 the name of the City of San Bernardino all necessary forms and agreements for the purposes 0 10 reprogramming the funds and creating the energy efficient retrofit grant program. 11 12 III III III III III III III III III III III III III III III III III III III -2- 1 2 3 4 5 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA BERNARDINO AUTHORIZING THE REPROGRAMMING OF CERTAIN ENERG EFFICIENCY AND CONSERVATION BLOCK GRANT FUNDS PROGRAM AND TH CREATION OF AN ENERGY EFFICIENT RETROFIT GRANT PROGRAM USIN EECBG PROGRAM FUNDS. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayo 6 and Common Council of the City of San Bernardino at a meeting thereof, held 0 7 the , 2010 by the following vote, to wit: day of 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ DESJARDINS BRINKER SHORETT KELLEY JOHNSON MCCAMMACK Rachel G. Clark, City Clerk The foregoing resolution is hereby approved this day of ,2010. Patrick J. Morris, Mayor City of San Bernardino Approved as to FORM: By: S F. PENMAN, Attorney -3- City of San Bernardino Enerav Efficiencv & Conservation Block Grant Proaram & Proiects BEFORE Pro'ect Title Total Pro"ect Costs $300,657 $174,157 $185,157 $152,757 $58,657 $113,657 $113,657 $433,669 $86,465 $21,257 $60,857 $253,657 Total $1,954,600 AFTER Proiect Title Total Proiect Costs City Hall LiQhtinQ Update $300,657 ParkinQ Structure LiQhtinQ Upgrade $174,157 Library liQhting uPQrade $185,157 Police department liQhtinQ upgrade $152,757 Agenda management software $58,657 Residential Energy Efficient Retrofit Grant ProQram $660,982 Solar Power Purchase AQreeement RFP Preparation $86,465 Train existing staff in LEED and green buildinQ $21,257 articipate in SAN BAG GHG inventory & CAP project $60,857 Develop EECS and a Sustainability Master Plan $253,657 Total $1,954,600 EECBG Activity Worksheet Grantee: Ci ty of San Bernardino Date: 12/01/2010 DUNS #: 59452636 Program Contact Email: Dailey_Ca@sbcity.org Program Contact First Name: Casey Last Name: Dailey Project Title: Residential Energy Efficiency Retrofit Grant Program Activity: 5. Energy Efficiency Retrofits If Other: Sector: Residential If Other: Proposed Number of Jobs Created: 6.50 Proposed Energy Saved and/or Renewable Energy Generated: Proposed GHG Emissions Reduced (C02 Equivalents): 64.600 Proposed Funds Leveraged: Proposed EECBG Budget: 660,982.00 Proposed Number of Jobs Retained: 0.00 90,000 kWh/year Projected Costs Within Budget: Administration: $147,326.00 Revolving Loans: Project Contact First Name: Casey Last Name: Dailey Metric Activity: Building Retrofits Project Summary: (limit summary to space provided) The City will establish an energy efficient retrofit grant program to provide grants to owner occupied homes for the purposes of implementing energy efficient retrofits. Some of the proposed eligible improvements will include lighting systems, dual paned windows, attic insulation, and other energy efficient improvements. The program will include both pre and post retrofit audits to ensure the desired efficiencies are achieved. Additionally, grant participants will be requires to provide utility bill statements for a period of time before and after the retrofit to monitor and track the savings. It is currently anticipated that the City will hire a consultant to develop the program guidelines and administer the grant program. Subgrants: Email: dailey _ ca@sbcity. org If Other: The City will work with the utility companies (Southern California Edison and Southern California Gas Company) and the Community Energy Partnership (CEP) to offer a comprehensive energy efficiency retrofit program that includes home auditing services and grants for energy efficiency improvements. The City's energy efficient retrofit grant program will be established in conjunction with the utility companies to ensure the program is complementary with existing programs. In combination with the rebates and incentives already offered by the utility companies, the City's grants will further incentive the installation of costly energy efficient improvements, such as new windows, insulation, air conditioners, furnaces, heat pumps and boilers. The maximum grant amount offered by the City will be up to $10,000 per household. Additionally, the City intends to purchase an equipment library for use by recently trained home performance auditors to perform the audits at a significantly reduced rate to homeowners. In order to increase San Bernardino resident participation, a portion of the grant funding will be spent on advertising the City's energy efficient retrofit grant program. The City may work with the utility companies to determine the best means to advertise. Possibilities include notices with residents' utility bills, citywide post card mailings, advertisements on Omnitrans, newspaper advertisements, press releases, and web postings. To calculate the energy saved and GHG emissions reduced from this program, the following assumptions were made: - the average annual residential energy consumption is 18,000 kWh per year (electricity equivalent), - the improvements achieved through this program will reduce participants' energy use by 10 percent, - 50 households will participate and will receive the maximum rebate amount of $10,000. - The U.S. EPA Greenhouse Gas Equivalencies Calculator was used to calculate the estimated number of GHG reductions annually in metric tons. There are numerous opportunities to leverage additional funding through this program. In additional to the City's rebates, residential customers will be able to apply the utility company rebates and Federal tax incentives to many energy efficiency improvement projects. As the rebate amounts vary by the type of improvement, the amount of funding leveraged is unable to be determined at this time but will be calculated and reported to the State and Federal government after commencement of the program. If you are proposing more than one activity, save this file as many times as needed with successive page numbers. For example: "OH-CITY-Columbus- Project Activity page 1.pdf," "OH-CITY-Columbus-Project Activity page 2.pdf," and continue as needed.