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HomeMy WebLinkAboutMINUTES - 06022009 - C.36RECOMMENDATION(S): 1. ACCEPT report from the Department of Conservation and Development about the status of the County's application for the Energy Efficiency & Conservation Block Grant (EECBG) Program. 2. AFFIRM the parameters that staff proposes to use in developing final recommendations to the Board regarding the activities and projects to be implemented with the County's EECBG funding. FISCAL IMPACT: If awarded, this funding would be used to implement a variety of activities and projects that are expected to reduce County energy costs, create/retain jobs and increase services that will enhance energy efficiency and conservation within the public and private sector. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/02/2009 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Deidra Dingman (925) 335-1224 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: June 2, 2009 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: Celicia Nelson, Deputy cc: C.36 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:June 2, 2009 Contra Costa County Subject:Energy Efficiency & Conservation Block Grant Program BACKGROUND: The American Recovery and Reinvestment Act (ARRA) of 2009 appropriated $3.2 billion for the Energy Efficiency and Conservation Block Grant (EECBG) Program. The Program is administered by the U.S. Department of Energy (DOE) and provides federal grants to assist eligible units of local government, Indian tribes, states, and U.S. territories in implementing strategies to: 1. reduce fossil fuel emissions created as a result of activities within the jurisdiction of eligible entities in a manner that - a. is environmentally sustainable; and b. to the maximum extent practicable, maximizes benefits for local and regional communities; 2. reduce the total energy use of the eligible entities; and 3. improve energy efficiency in - a. the transportation sector; b. the building sector; and c. other appropriate sectors. Additional purposes of the EECBG Program are to spur economic growth and create and/or retain jobs. Of the $3.2 billion dollars appropriated in total EECBG program funds, $2.8 billion will be allocated as “formula grants”. On March 26, 2009, the DOE announced that Contra Costa County and nine local cities qualified to receive “formula grant” allocations. The County has been allocated $3,574,300 and the exact amounts for each city are listed in the Energy Efficiency & Conservation Strategy (EECS) section of this report. The County will be required to obligate all EECBG funds within 18 months and expend all EECBG funds within 36 months. According to EECBG program guidance, EECBG funds will have maximum impact if invested in ways that create and/or retain jobs and stimulate the economy in the short term while laying the foundation for a long-term and sustainable clean energy economy. Therefore, the DOE encourages grantees to prioritize programs and projects that: • Leverage other public and private resources. • Enhance workforce development. • Persist beyond the funding period. • Promote energy market transformation such as revolving loans, low-cost loans, energy savings performance contracting, advanced building codes, building and home retrofit incentives and policies, and transportation programs and policies. There are a variety of activities considered to be eligible for use of these funds, including some which target government owned facilities and others that are community wide and intended to impact/benefit the private sector. The following is a brief overview of the eligible activities which are explained in more detail in Exhibit A: 1. Development of an Energy Efficiency and Conservation Strategy (EECS) 2. Technical Consultant Services to assist with EECS 3. Residential & Commercial Building Energy Audits 4. Financial Energy Efficiency Incentive Programs 5. Energy Efficiency Grants to Nonprofits & Governmental Agencies 6. Energy Efficiency and Conservation Programs for Buildings & Facilities 7. Development & Implementation of Transportation Programs 8. Building Codes and Inspections to promote building energy efficiency 9. Energy Efficient Distribution Technologies 10. Energy Efficient Material Conservation Programs 11. Reduction and Capture of Methane and Greenhouse Gases 12. Energy Efficient Traffic Signals & Street Lighting 13. Renewable Energy Technologies on Government Buildings 14. Any Other Appropriate DOE Approved Activity Approach for use of County's EECBG Funding Over the past couple of months, staff from the Department of Conservation & Development have been working cooperatively with respresentatives in the County Administrator's Office, Health Services, General Services and Public Works regarding this funding opportunity. Results of this multi-departmental collaboration are highlighted in this report. There are several recurring themes in the approach being used to develop a comprehensive strategy that would guide the use of these funds. Key recurring themes include: 1. Ensure use of funds will provide benefits to the public and private sectors. 2. Incorporate cooperative and regional partnership opportunities (such as working with local jurisidictions, Community College District and youth). 3. Design recommended activities and programs to minimize related administrative costs. There are more valuable activities/programs than the County has funding to implement, therefore staff is utilizing the prioritization parameters specified by the US DOE. Staff expects to provide a report to the Board of Supervisors on or before June 23rd that will include a listing of each recommended activity/project that the County would implement with our EECBG funding if approved by the US DOE. The percentages listed adjacent to each of the following objectives identifies the proportion of funding likely to be recommended based upon the sectors targeted by each of the activities/projects being developed by staff. The types of activities/projects likely to be recommended under each of the objectives are also included below. The remaining 5% of EECBG funding is expected to be recommended for use to cover costs associated with Grant Administration (examples of activities considered to be Grant Administration is included in the "Required Tracking, Measuring & Reporting" section of this report). Reduce energy use and cost for County Facilities (40%) Lighting Upgrades/ Improvements (builds on efforts started under the County’s Strategic Energy Plan) Energy Efficiency Building Projects (builds on efforts started under the County’s Strategic Energy Plan) Solar PV Renewable Power Program Assist in reducing energy use and cost for Non-Profit Facilities (15%) Grant Program - Energy Efficiency Retrofits Assist in reducing energy cost and use for Low Income Households (15%) Energy Efficiency Improvements for Low Income Residences (to supplement the County’s existing weatherization activities) Revolving Loan Program - Energy Efficiency Improvements to Residences Provide incentives to assist in reducing energy use within the private sector (10%) Energy Efficiency Assessments & Recommendations Permit Fee Rebates for Energy Efficiency Projects Provide programs and resources to help increase energy efficiency and conservation (9.4%) Energy Conservation Campaign targeting County Employees Energy Efficiency & Conservation Incentive Toolkit Voluntary Rating Program for New and Existing Homes Streamline regulatory process to reduce energy consumption in the built environment (4.2%) Regulatory Streamlining - Update Zoning Code & Standards Commute Incentives (1.4%) Commute - Pre-Tax Transit Incentives for County Employees (to be integrated with the County’s existing Health Care Spending Account and Dependant Care Assistance Programs Energy Efficiency and Conservation Strategy (EECS) The County is required to submit an Energy Efficiency and Conservation Strategy (EECS) under the EECBG Program which will include the County’s goals, objectives and implementation plan for all of the activities/projects to be funded by the grant. The County would only receive a portion of the $3.57 million EECBG allocation up-front. If the County submits a completed EECS with our Grant Application, we would receive our funding in two installments rather than three as explained below. INITIAL INSTALLMENT(S): The County would receive up to 50% of the total allocation up-front upon DOE approval of our EECS. If we do not submit our EECS with the application, the County would only receive up to $250,000 up-front(our EECS would have to be submitted within 120 days) and the balance of the first 50% of the County’s allocation would only be paid upon DOE approval of our EECS. FINAL INSTALLMENT: The remaining 50%of the County’s EECBG allocation would not be available until the County submitted one or more quarterly progress reviews demonstrating that the County has "obligated funds appropriately, complied with reporting requirements and created jobs". DCD staff intends on submitting the EECS with the grant application in order to expedite receipt of grant funds. The EECS will draw upon related documents such as the County’s Municipal Climate Action Plan, will leverage other revenues sources, and will account for County initiatives to be funded by other revenue the County is receiving through the ARRA of 2009. When developing our EECS, the County is required to take into account any plans for use of funds by adjacent eligible units of local governments that receive grants under the EECBG program. The following table identifies the EECBG allocation for the nine local governments eligible to receive direct formula grants from the US DOE. Staff has been in contact with representatives from each of these cities to share information and explore partnership opportunities. A half-day workshop has been scheduled for May 28th, 2009 to provide Contra Costa jurisdictions with EECBG related information and should serve as a valuable forum to collaborate and share resources. Name Allocation Antioch $ 885,000.00 Brentwood $ 197,000.00 Concord $1,151,900.00 Danville $ 168,400.00 Martinez $ 150,800.00 Pittsburg $ 565,500.00 Richmond $ 955,100.00 San Ramon $ 215,600.00 Walnut Creek $ 677,700.00 Contra Costa $3,574,300.00 County + CCC Cities = $8,541,300.00 Required Tracking, Measuring & Reporting DCD staff will help administer this grant, including compiling the information needed from the various Departments in order to ensure the County complies with the reporting requirements under the EECBG. Quarterly Reports. The County will be required to submit reports on a quarterly basis that summarize actual expenditure of funds as well as details regarding the five required metrics listed below: 1. Jobs created and/or retained 2. Energy savings on a per dollar invested basis 3. Renewable energy capacity installed 4. Greenhouse gas emissions reduced 5. Funds leveraged Annual Reports. No later than two years after the date on which funds are initially provided, and annually thereafter, the County will be required to submit a report describing: A) the status of development and implementation of the grantee's EECS; and B) as practicable, an assessment of energy efficiency gains within the grantee's jurisdiction. The relevant details in these reports will be used to make information available to the public as a means of ensuring accountability and transparency called for by the ARRA. County staff proposes to provide information on the uses of the EECBG revenue and outcomes achieved on the County’s website. This information will also be made available to our legislative delegation in Congress. CONSEQUENCE OF NEGATIVE ACTION: CHILDREN'S IMPACT STATEMENT: ATTACHMENTS EECBG-Exhibit A - Page 1 - Exhibit A – Eligible EECBG Activities Eligible activities under the EECBG Program are specified in Title V, Subtitle E of the Energy Independence and Security Act of 2007 (EISA), signed into Public Law (PL 110-140) on December 19, 2007. All projects receiving financial assistance from the DOE must be reviewed under the National Environmental Policy Act (NEPA) of 1969. An eligible entity may use an EECBG grant to carry out activities to achieve the purposes of the program*, including the following: Energy Efficiency and Conservation Strategy (EECS) (1) development and implementation of an energy efficiency and conservation strategy under Section 545(b); (2) retaining technical consultant services to assist the eligible entity in the development of such a strategy, including: (A) formulation of energy efficiency, energy conservation, and energy usage goals; (B) identification of strategies to achieve those goals: (i) through efforts to increase energy efficiency and reduce energy consumption; and (ii) by encouraging behavioral changes among the population served by the eligible entity; (C) development of methods to measure progress in achieving the goals; (D) development and publication of annual reports to the population served by the eligible entity describing: (i) the strategies and goals; and (ii) the progress made in achieving the strategies and goals during the preceding calendar year; and (E) other services to assist in the implementation of the energy efficiency and conservation strategy; Energy Audits and Building Retrofits (3) conducting residential and commercial building energy audits; (4) establishment of financial incentive programs for energy efficiency improvements; (5) the provision of grants to nonprofit organizations and governmental agencies for the purpose of performing energy efficiency retrofits; (6) development and implementation of energy efficiency and conservation programs for buildings and facilities within the jurisdiction of the eligible entity, including— (A) design and operation of the programs; (B) identifying the most effective methods for achieving maximum participation and efficiency rates; (C) public education; (D) measurement and verification protocols; and (E) identification of energy efficient technologies; Transportation Energy Efficiency (7) development and implementation of programs to conserve energy used in transportation, including: (A) use of flex time by employers; (B) satellite work centers; (C) development and promotion of zoning guidelines or requirements that promote energy efficient development; (D) development of infrastructure, such as bike lanes and pathways and pedestrian walkways; (E) synchronization of traffic signals; and (F) other measures that increase energy efficiency and decrease energy consumption; Building Energy Codes (8) development and implementation of building codes and inspection services to promote building energy efficiency; Distributed Generation and District Power (9) application and implementation of energy distribution technologies that significantly increase energy efficiency, including: (A) distributed resources; and (B) district heating and cooling systems; Recycling and Material Energy Recovery (10) activities to increase participation and efficiency rates for material conservation programs, including source reduction, recycling, and recycled content procurement programs that lead to increases in energy efficiency; Landfill Methane Capture and Use (11) the purchase and implementation of technologies to reduce, capture, and, to the maximum extent practicable, use methane and other greenhouse gases generated by landfills or similar sources; LED/Efficient Traffic Signals (12) replacement of traffic signals and street lighting with energy efficient lighting technologies, including: (A) light emitting diodes; and (B) any other technology of equal or greater energy efficiency; Renewable Energy on Public Facilities (13) development, implementation, and installation on or in any government building of the eligible entity of onsite renewable energy technology that generates electricity from renewable resources, including: (A) solar energy; (B) wind energy; (C) fuel cells; and (D) biomass; and Discretionary (14) any other appropriate activity, as determined by the Secretary, in consultation with: (A) the Administrator of the Environmental Protection Agency; (B) the Secretary of Transportation; and (C) the Secretary of Housing and Urban Development." G:\Conservation\Deidra\Climate\EECBG\Board Orders and Reports\Board 6-2-2009\EECBG-ExhibitA.doc * EECBG PROGRAM PURPOSES (established in EISA & ARRA) According to Section 542(b) of Title V, Subtitle E of EISA (PL 110-140), the purpose of the program shall be to assist eligible entities in implementing strategies - 1. to reduce fossil fuel emissions created as a result of activities within the jurisdictions of eligible entities in a manner that - a. is environmentally sustainable; and b. to the maximum extent practicable, maximizes benefits for local and regional communities; 2. to reduce the total energy use of the eligible entities; and 3. to improve energy efficiency in - a. the transportation sector; b. the building sector; and c. other appropriate sectors. According to the American Recovery and Reinvestment Act (ARRA) of 2009, additional purposes of the program are to spur economic growth and create and/or retain jobs.