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HomeMy WebLinkAboutMINUTES - 06162009 - SD.4RECOMMENDATION(S): 1. AUTHORIZE the Conservation and Development Director, or her designee, to complete, execute and submit all documentation necessary to secure the County’s $3.57 million Energy Efficiency and Conservation Block Grant (EECBG) Program formula grant allocation from the US Department of Energy (DOE) and to coordinate with other Departments to implement the grant. 2. AUTHORIZE the General Services Director, or his designee, to act as the County’s EECBG Financial Officer responsible for completing, signing and certifying the Financial Management Assessment to be submitted to the US DOE as required under the EECBG Program. 3. FIND that the submission of documentation required to secure funding under the Energy Efficiency and Conservation Block Grant (EECBG) Program is a governmental fiscal activity that is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15601(b)(3) of the CEQA Guidelines as it is not expected to have a significant adverse impact on the environment. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/16/2009 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS 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 16, 2009 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: Demian Hardman, Terry Mann SD. 4 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:June 16, 2009 Contra Costa County Subject:Energy Efficiency & Conservation Block Grant (EECBG) Program FISCAL IMPACT: If awarded, this funding appropriated through the American Recovery and Reinvestment Act (ARRA) of 2009 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. BACKGROUND: At the Board of Supervisors meeting on June 2, 2009, the Board accepted a report regarding the status of staff’s coordinated approach to preparing the materials required for the County to apply for the $3,574,300 formula grant allocation under the Energy Efficiency and Conservation Block Grant (EECBG) Program. At that meeting, the Board affirmed parameters staff proposed to use to develop final recommendations to the Board regarding the activities and projects to be implemented with the County’s EECBG funding expected to be awarded by the U.S. Department of Energy (DOE). Details contained in the report considered by the Board on June 2, 2009 (Agenda Item C.36) which remain unchanged have not been restated herein, however the report is attached as Exhibit A. Staff is recommending a minor change to allocation proposed for two funding objectives that were outlined in the June 2, 2009 Board Order (see Exhibit A) as a result of new information related to converting streetlights to more energy efficient Light Emitting Diodes (LEDs). Specifically, 5% of the funding previously proposed to be allocated to activities under the objectives targeting Non-profit Facilities (reduce from 15% to 10%) is proposed to be shifted to County Facilities (increase from 40% to 45%). There are additional required details regarding LED streetlight conversion which were not available prior to the preparation of this report, but are expected to be available before the Board meeting on June 16, 2009. If the necessary details regarding LED streetlight conversions are not available or demonstrate inadequate cost/energy savings or reduced funding need, staff proposes that some or all of this 5% of funding be added to the budget for activities intended to reduce County's energy use. As can be seen from the following recommended funding objectives, staff is proposing to implement activities/projects targeting a variety of different sectors which we expect to benefit the public and private sector by improving energy efficiency and reducing fuel/energy consumption. Exhibit B contains summary of the amount of EECBG funding that the County would propose to dedicate to the implementation of each activity/project falling under the below funding objectives, subject to approval from the US DOE. 1. Reduce energy use and cost for County Facilities (45%) 2. Assist in reducing energy use and cost for Non-Profit Facilities (10%) 3. Assist in reducing energy cost and use for Low Income Households (15%) 4. Provide incentives to assist in reducing energy use within the private sector (10%) 5. Provide programs and resources to help increase energy efficiency and conservation (9.4%) 6. Streamline regulatory process to reduce energy consumption in the built environment (4.2%) 7. Reduce overall vehicular miles traveled by County employees (1.4%) Approximately 5% of EECBG funding is recommended for use to cover Department of Conservation and Development costs associated with Grant Administration (including compiling the information needed from the various Departments in order to ensure the County complies with EECBG reporting requirements). CONSEQUENCE OF NEGATIVE ACTION: If the recommendations are not approved, the County would not be able to comply with the grant application requirements necessary to secure the funding allocated under the EECBG Program. ATTACHMENTS Exhibit A - Board Order dated 6/2/2009 Exhibit B - EECBG Activities/Projects RECOMMENDATION(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. 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: 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 AYES NOES ABSENT ABSTAIN RECUSE 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 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:May 19, 2009 Contra Costa County Subject:Energy Efficiency & Conservation Block Grant Program Page 1 of 6Print Agenda Item Request 6/2/2009http://64.166.146.155/print_ag_memo.cfm?seq=1412&rev=0&mode=custom&reloaded=true Contact: Deidra Dingman (925) 335-1224 By: , Deputy cc: To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:May 19, 2009 Contra Costa County Subject:Energy Efficiency & Conservation Block Grant Program Page 2 of 6Print Agenda Item Request 6/2/2009http://64.166.146.155/print_ag_memo.cfm?seq=1412&rev=0&mode=custom&reloaded=true BACKGROUND: (CONT'D) 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 Page 3 of 6Print Agenda Item Request 6/2/2009http://64.166.146.155/print_ag_memo.cfm?seq=1412&rev=0&mode=custom&reloaded=true 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%) l Lighting Upgrades/ Improvements (builds on efforts started under the County’s Strategic Energy Plan) l Energy Efficiency Building Projects (builds on efforts started under the County’s Strategic Energy Plan) l Solar PV Renewable Power Program Assist in reducing energy use and cost for Non-Profit Facilities (15%) l Grant Program - Energy Efficiency Retrofits Assist in reducing energy cost and use for Low Income Households (15%) l Energy Efficiency Improvements for Low Income Residences (to supplement the County’s existing Page 4 of 6Print Agenda Item Request 6/2/2009http://64.166.146.155/print_ag_memo.cfm?seq=1412&rev=0&mode=custom&reloaded=true weatherization activities) l Revolving Loan Program - Energy Efficiency Improvements to Residences Provide incentives to assist in reducing energy use within the private sector (10%) l Energy Efficiency Assessments & Recommendations l Permit Fee Rebates for Energy Efficiency Projects Provide programs and resources to help increase energy efficiency and conservation (9.4%) l Energy Conservation Campaign targeting County Employees l Energy Efficiency & Conservation Incentive Toolkit l Voluntary Rating Program for New and Existing Homes Streamline regulatory process to reduce energy consumption in the built environment (4.2%) l Regulatory Streamlining - Update Zoning Code & Standards Commute Incentives (1.4%) l 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. Page 5 of 6Print Agenda Item Request 6/2/2009http://64.166.146.155/print_ag_memo.cfm?seq=1412&rev=0&mode=custom&reloaded=true 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: 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 = $8,541,300.00 Page 6 of 6Print Agenda Item Request 6/2/2009http://64.166.146.155/print_ag_memo.cfm?seq=1412&rev=0&mode=custom&reloaded=true EXHIBIT B - EECBG Proposed Activities/Projects Title Description Budget (Approx) Reduce energy use and cost for County Facilities 45% Lighting Improvements Energy efficient lighting improvements to County facilties (including high efficiency lighting/lighting controls for about 15 buildings, stairwell lighting in 30 buildings and possibly some streetlights). 528,407$ 14.8% Building Retrofits Energy efficiency retrofits to about 10-15 County buildings (e.g. improvements to heating, air conditioning, ventilation, controls and building envelope). 1,000,000$ 28.0% Renewable Power Expand use of renewable solar power to serve about 4-10 additional County facilities (using potential Power Purchase Agreement). 80,000$ 2.2% Assist in reducing energy use and cost for Non-Profit Facilities 10% Grants to Non-Profits Conduct energy audits and/or fund selected energy efficiency improvements to non- profit facilities. 357,458$ 10.0%10% Assist in reducing energy cost and use for Low Income Households 15% Revolving Loan Program Administer a revolving loan program to provide micro loans to low and/or fixed income households to fund energy efficiency improvements for their homes. 268,073$ 7.5% Home Retrofit Program Expand services provided to assist low and/or fixed income residents in making their homes more energy efficient (to supplement existing Weatherization Program). 268,073$ 7.5% Provide incentives to assist in reducing energy use within the private sector 10% Energy Efficiency Assessments & Recommendations Conduct energy audits for residential & commercial buildings and provide customized energy improvement recommendations. 207,430$ 5.8% Permit Fee Rebates Provide buiding permit fee rebates for installation of solar panels on commercial and residential buildings. 150,000$ 4.2% The below budgets and related percentages include rounding and should only be considered approximate totals. All below activities intended to assist the public sector in reducing energy used by non-profit, residential and commercial buildings would only be offered for properties that are located within the unincorporated areas. % 45% 15% 10% EXHIBIT B - EECBG Proposed Activities/Projects Title Description Budget (Approx)% Provide programs and resources to increase energy efficiency & conservation 9% Voluntary Rating Program for New & Existing Homes Provide appropriate training to staff to launch a voluntary program, with incentives, to encourage developers and property owners to incorporate measures contained in locally adopted green building guidelines in single-family residential building projects (new and existing homes). 300,984$ 8.4% Energy Efficiency & Conservation Toolkit Develop and promote user-friendly toolkit (website & printed materials) with information about existing Energy Efficiency & Conservation incentives, tips and other resources available to the private sector from a variety of entities (including local utilities, State & Federal government agencies, etc.) to encourage maximum participation/utilization. 25,000$ 0.7% Employee Energy Conservation Campaign Educational campaign to encourage County employees to conserve energy & water and reduce vehicle miles traveled. 10,000$ 0.3% Streamline regulatory process to reduce energy use in the built environment 4% Update Zoning Code & Standards Amend General Plan & Zoning Code to update Parking Ordinance, Home Occupation Ordinance, and allow for Mixed- use Development in all Commercial Zoning Districts. 150,161$ 4.2%4% Reduce overall vehicular miles traveled by County employees 1% Employee Commute Reduce commute miles traveled by County employees by increasing participation in existing commute programs (e.g. telecommuting, compressed work weeks and van pool programs) and/or new voluntary program to establish a pre-tax public transportation incentive. 50,000$ 1.4%1% Grant Administration 5% Coordinate Grant Administration Compile the information needed from the various Departments in order to ensure the County complies with EECBG requirements, including submission of Quarterly and Annual Reports. 178,715$ 5.0%5% 3,574,300$ 9% 100%