SR-510-006 (5)
~
.
S/0-006
.
Santa t1onlca~ California~ October 30, 1980
TO:
Mayor and Clty Council
5-8
FROM: City Staff
NOV 1 1 1980
sB
i
,
SUBJECT: Proposal for Santa rlonica t1uniclpal Solar Utllity
NO\' 2. '5 1980
Introducti on
ThlS report describes possible implementatlons for a Santa Monica
Munlclpal Solar and Conservation Utility and recommends that the IlDirect
Servl ce t'1ode 111 be adopted and a Project Di rector be hlred.
Background
ProJect History
On November 13~ 1979~ the Clty Council approved a Joint Powers Agreement
bet\'Ieen the City of Santa t10nica and five other California citles for the
creation of a California Solar Utillty Development Authority (CSUDA).
According to thlS Agree~ent the SlX citles would jointly explore the
potential for the develop~ent of municlpal solar utllitles. In addltion,
each city agreed to focus its investigation on a specific Rarket segment.
The Councll appointed Councll~e~ber Cheryl Rhoden to represent the Clty
at the CSUDA, and Director of General Services, Stan Scholl, to act as
the city's alternate.
The JOlnt Pov/ers Agreenent approved by the CounCll stated that:
The City of Santa Monlca agrees to consider the
posslble development of a solar utillty which
wlll be speciflcally addressed to multl-faml1y
residentlal houslng, and lf othen~ise feasible,
wlll lnclude lmplementation plans of a communlty
development corporation, or other slnilar organ-
lzational for~at for the Solar Utility (SU) as
at least one of the alternatlve lmplenentatTOn
plans to be developed under the terms of thlS
agreement. (p.9)
58
NOV .3 ~ 1380
s-e
NOV 1 1 'geO
.
.
October 16, 1980
-2-
The purpose of a municipal solar utlllty is to achieve two goals established
by the Callfornia Energy Commlssion:
"(1) to overCOf11e the barrier of hlgh inltlal
costs of sol~r technologies relative to
conventional energy forms;
(2) and to overcome the barrler of inadequate
protection of the public fo~ the risks
associated with establishment of a new
solar industry. H
("Municipal Solar Utllitles", CEe Solar Offlce,
October 1979)
The newly-forned CSUDA and the Energy Commlsslon signed a contract
(Agreement No. 500-79-022) to run from December 15, 1979 to December 15,
1980, providing the CSUDA wlth the funds to conduct regular buslness
meetlngs and to hlre a consultant to wrlte a report addresslnq the
lssues generic to the development of solar utilities in the SlX cities.
Under the terms of this contract, as well, each member clty would develop
"b/O or more implementatlOn plans sUltable for presentation to the respec-
tive city councils of the jurisdlctlOns." (CEC Contract, p.l)
The Santa flam ca Muni clpal Sol ~ a~ C~nservatlOn Uti11 ty
In July 1980, John M.Sanger Assoclates, Inc., delivered the generic issues
report, Munlclpal Solar Utllitles~_ Dr~ft Generic Issues Report, to the
CSUDA. That same month, the Energy Commission contracted wlth the CSUDA
to provlde funds for "on-call asslstance'l to each clty in development of
its lmplementation plans. In August 1980, Robert Blumberg, a RAND
Corporation consultant and Post-Graduate Researcher at the UCLA School
of Englneerlng and Applled SClence, Uepartment of System Science, was
retalned by the Department of General SerVlces to write the Santa Monica
MSCU report.
.
.
October 16, 1980
-3-
Attached ; s the C1 ty of Santa non i ca' s MSCU report, A Santa 1'10"; ca
Municipal Solar and Conservation Utl1ity: Issues, Analysls and Program,
containlng an analysis of resldentia1 energy usage. analysis of program-
matic components and a set of Clty program alternatives. Also attached
is a copy of the Gener1c Issu~s Report prepared by Sanger AssOc1ates.
As evidenced by the tltle, the scope of the study was broadened beyond
the conslderations of f1nance and consumer protection for solar water
heating app11catlons. Whlle the Sanger Report assumed the lIin1tiation
of more broadly concei ved local programs to promote retrofl t insul ati on
of ltS bUlld1ng stock, passive solar home des1gns. and energy conSClOUS
site planning.1t (Sanger, 1.3) the Santa Monica Report proceeded from a
fundamental analysis of energy use 1n the city's resldentlal sector. The
analysls suggested that enerqy conservation should be lncluded withln the
framework of the MSCU Study. The project report was accordingly retitled,
IISanta Monica Municipal Solar and Conservat1on UtilityJl (HSCU) to more
accurately reflect this new focus.
Addltlonally, 1n seeking to present a comprehenslve residential energy
proqram all sectors of the housing market, slngle family, multifanily
and condomlnium are 1ncluded 1n the report, either explicitly or
impl1cltly.
Program Models
The report presents two models for a Santa Monica Solar and Conservation
Utlllty; a Facilltation T10del and a Direct Servlce Hodel.
.
.
October 16, 1980
-4-
FACILITATION MODEL:
Under the Facl1itation Model, the MSCU will serve as a local marketing
agency for conservati on and solar techno 1 Ogl es. The nscu wi 11 provi de
baslC serVlces WhlCh w1ll asslst the residential customer ln overcoming
current market barrlers. The Facilltation has three co~ponents:
Information:: A consumer oriented information bank will be maintained
as a basis for custower decisionmaklng. Pro~otional and educatlonal
materials wl11 be distributed upon request and targeted to selected
market segments. Workshops and I'do-lt-yourself" klts will be offered
for self-motlvated lndlvidua1s.
Finance: Conventional financing is seen, uniformly, as a major obstacle
to wldesoread lmplementation of conservation measures and solar technologies.
Therefore. the nucleus of the FaCl11tat1on Model is a D1rect Lendlng
Finance Program in Wh1Ch the Clty will issue direct solar and conserva-
tion loans to residential custo~ers. The loans wll1 be made at 1nterest
rates Sllghtly above the rate the city would otherW1se earn on its reserves-
to cover incurred overhead costs. Loan processinq and billlng serVlces
\olill be provlded by a local lending 1nstltutlOn. The Flnance Program T,;r~ll
also serve as a framework for the Clty to admlnster SUbSldy monies -
(HUD, Solar Bank, CDBG) for conservatlon and solar services.
ConsUMer Protectlon: Many would-be solar customers are unwill1ng to
partlcipate in an unproven r:1arket. The ~1SCU will lnsure that solar
contractors partlclpat1ng in City programs meet mini~um eligibllity
standards (.e.g use qual1ty parts, have proven track records, offer
.
.
October 16, 1980
-5-
extended warranties, etc.). The MSCU wll1 monitor lnstallations which
are performed locally, util1zing Buildlng Departwent personnel to make
post-installation inspections.
DIRECT SERVICE MODEL
The Dlrect Servlce Model includes all the elements of a Facilltatlon Model
and expends it to include energy auct1t and energy conservation installation
serVlces, i.e. direct serVlce by the City_ A description of these two
additional functions and the rationale for their lnclus10n in a Clty
program follows.
Energy Aud1t: The energy audit lS the central tool in all residential
conservatlon programs. The typical energy audlt surveys the dwelling
unlt and analyzes the cost effectiveness of a variety of energy conserva-
tlon measures.
Currently, the U.S. Department of Energy and the California Energy
CO~isslon are negotiating the structure and content of a Resldential
Conservatlon Service (RCS) to be provided by the utl11t1es. The ReS
would prov1de an energy audlt upon request to all property owners and
to tenants 1n bUlldlngs of four units or less.
The Callfornia Energy Co~misslonls plan, pending flnal approval by the
DOE, lncludes the option of utll1ties contractlng with local governments
to provlde the ReS withln thelr communlties. There are several reasons
for the C1ty to consider pursu1ng this opt1on:
.
.
October 16, 1980
-6-
(1) The City could des1gn an RCS that would more
adequately reach the C1ty.S tenant population.
part1cular1y those liv1ng In buildings of five
units or more;
(2) The City could provlde a more cost-effect1ve
program for the multi-faml1y sector through
innovative audlt deslgn such as workshops;
(3) The C1ty could combine the energy audit with
insta11at1on of slmple energy conservation
measures. achievlng a greater reductlon in
energy consumption from utll1zation of the
audit mechanism; and
(4) The C1ty could pursue a more active energy
audit service w1th greater self-interest.
The 01 rect Se rvi ce t10de 1 pres uppos es that the City w111 open up negot 1 a-
t10ns wlth the relevant parties (Soea1 Gas, the Edison Company. CEe) 1n
pursulng this option, so there would be no duplication of services by
the MSCU and the utll1ties. The cost of an ReS audit program provided
by the MSCU would be fully covered by the utilltles.
Installation
Installation of a package of energy conservation measures will be provlded
by the MSCU. These conservatlon measures, such as hot-water heater
insulat10n blankets, low-flow showerheads, and caulking, are cost-effectlve
1n all cases, and do not requlre mod1fication of the bUlldlng structure.
Currently there are no companies WhlCh offer this type of conservatlon
package. MSCU provlsion of such a serVlce would help create consumer
confldence In thlS lnstallation; lower costs through bulk purchase of
materlals; and assure quality control. By offering th1S serVlce at the
time of the energy audit, costs could be further reduced
.
.
October 30, 1980
-7-
The cost of the installation serVlce would be covered on a fee-for
service basis. The MSCU financing program would aid those requiring
aSslstance.
A summary of start-up and ongoing activities in WhlCh the MSCU wl11
engage is presented ln the attached Program Overview. Some of the
start-up activities should be initiated by city staff as soon as
possible; others should wait unlt MSCU staff have been assigned and
the program 1S underway.
Recommendation
Staff reeommends that the Clty Council:
1. Adopt, ln concept, the Dlrect Service Model and direct city staff
to initiate program development.
2. Appropriate $22,500 from General Fund Reserves for the hiring of a
staff. (The $22,500 lncludes a $15,000 salary and $7,500 for benefits
and support services from January 1, 1981 to June 30, 1981.) Staff
would prepared an implementatlon plan and budget for the adopted
program model, to be approved by the City Council at a future meet1ng.
Prepared by: Stan Scholl
Robert Blumberg
----- ~ - '-..-
I
I
....0
:::Iro
()<
.......ro
C .......
a.. 0
ro-o
CO-
rt' .....
..... .......
....... .......
.... .....
rt~
'< I.Cl
..
-0
~~
roo
:::I()
rtro
P.la..
.......e
" ~
ro
:::EV!
P.l
rt-
ro3
~P.l
.......'<
I
I
:::EP.lO
......:::1 ro
rta..<
~ ro
() .......
OJoo
:::1-0
--' VI
oroo.
() ~ .....
o.<-s
....... 0. ro
rtn
....... ~.c+
roo
~:::l"O
0. -S
.........0
::s :::H..C1
<..CI -S
()OJ
.....0 3
::S~
Vl c:..... "'"t)
r+eo
....:::s-s
rtn
ertv!
r+.....0
....., 0 --J
O:::lP.l
::s ~
1
I
o
-0
ro
~
c
-0
0.
.....
Q.I
.......
o
I.Cl
C
ro
:::E
.....
rt
~
.......
o
n
0>
---I
.......
ro
~
a..
ro
-S
V!
. .
0." 0""'1"1
....0. .....Q.I
-sn -sn
ro ..... ro-'
() ....... ()-' :::::
r+ ..... rt-' 0
rt rt CI
Vl 0. Vl Q.I m
roM- rort r-
-s .... -s -'.
<:0 <:0
.....:::1 ....:::l
n ...... () '"'-
ro ro
....... n
." Vl n =' 0
......0 OJ -+, 3:
:::se"O 0 ""0
OJ -S ...... -S 0
:::SOrt 3 z
()roOJ Q.I r1'1
ell ............. rt :z
-' -I
0
='
I
I
n
o
v::r
'"
-0
-s
o
"0
o
Ul
Q.I
.......
I
I
3:0.:::0
c<ro
:::lOJ"'O
................0
() .......-s
.....AJ r+
-0 0-
AJ.....-l-j
....... ....... -S
.....0
~~3
VI.. ."
CD ......
-s OJ :::I
<:::10.
ro 0.:::1
VI 0
......ro
3
"0 0
o.ro
0"0
rtOJ
-s
Ort'
-1,3
ro
C :::s
Ulrt
.....
:::s 0
I.Cl :::s
1
I
::E
-S
......
rt
ro
G1
-s
OJ
:::s
rt
"0
-s
o
-0
o
Ul
PJ
.......
Ul
I
I
c.c ""0
-S -s
OJ 0
:::s <
rt ......
Vl 0.
ro
0.
......
I
I
33(.1)
reOJro
rt-S1.Cl
::T~3
o 1'0 CD
0.M-::3
V'l rt
III
:::s .......
0..0
()
0.0>
1'0.......
<
mVl
.......0
0.......
-0 Q.I
-S
"0
-SOJ
0:1
30..
o
r+ ()
......0
0:::1
:::Sv!
OJro
--' -S
<
P.I
r+
.....
o
:::I
-s
ro
(')
rt
.......
o
OJ
::::s
Ul
Q.I
:::s
0..
(')
o
::J
Ul
m
-S
<
Q.I
rt
.....
o
:::l
1
I
()r-
0......
:::lV!
rt rt
-s
OJO
()-+.
M-
0(')
-SO
Ul:::S
.. VI
c
33
OJm
:::S""'S
c
-t,Ul
OJro
n-s
r-t-<
c ......
-sn
roro
""'5 Ul
Ulv
I
1
-0 rr1
-s <
OOJ
I.Cl .......
""'5C
P.l OJ
3n-
V! .....
o
:::s
o
-t,
3:
(.I)
n
c
OJ
:::s
a.
c
r+
.....
.......
.......
o
n
OJ
.......
n- ^
I .....
'<n-
O[/)
c
-s-
[/) I.Cl
rom
....... :::I
-t,(1)
....... -S
Q.I
.......
I
I
Ul3:
CP.l
"0 .....
"0:1
.......<"1"
....P.I
CD .....
-s:::s
V!
" .......
3Ul
P.lr+
:::s
cO
-I, -tl
P.I
nUl
r+l1)
C -s
-s<
l1) ......
-SO
Vlre
VI
......
~
I
1
.... 0
:::sm
-tl<
OCD
-s.......
30
OJ -0
r+
...... ......
1
1
-sn
roO
o='
ro rt
......OJ
<n
roc+
CD OJ
:::s-o
ro"O
-s'"'S
l..CIO
'<:"0
-s
O:::S
:::s-+,
o
~~
0..P.l
M-
e.. .....
00
1::::S
...... .....,
:::SQJ
-l-j rt
ort>
-s
30J
OJ to
r+ro
.....:::s
on
:::s....
ro
VI
.....
rt
o
......
I
I
(""')
o
:::s
0-
c
n
ri-
o
-s
QJ
-s
-S
J:l)
:::I
I.Cl
C'D
:::E
o
-s
A
VI
::s-
o
-0
V!
......
='
....
o
~
QJ
c+
....
o
='
co
QJ
:::s
7"
I
I
3:
OJ
......
::s
c+
Ql
.....
='
n
o
::s
r-t-
~
0>
n
<"1"
o
~
VI
"
(.I)
-i
:r:>>
;:0
-l
I
C
""0
o
:z
G")
a
....
::z
G1
""0
;;c
o
G1
;0
:t:>
3:
""0
:;0
o
G1-i
;::::lJ>
)>c:J
3:;r
rra
o
<:<
IT1 ....
;;c .
<:w
....
rr1
::E
)>
(""")
-l
....
<:
....
-I
......
I'T1
(.I)
.
.
I
I
aVl
e(1)
rt- --'
--'(1)
eon
rt- rt-
III
0 0"
...... ......~
"""j """j n
eo eo ......
n n ......
c+ rt- ......
c+
VJ VJ ~
eo eo c+
"""j """j ......
< < 0
...... ..... :::::5
n n ........
(1) eo
.......
:::::5 "'0
l/I ""'i (""')
rt- ):00 0 a
CJ e c+:::::5
--' C- eo l/I
--' ...... n e
CJ rt rt-3
rt- ........ ......(0
...... 0 -s
0 :::::5
:::::5
l/I
I I I I I I I
I I I I I I I
a.. 0 n :[ n n c+ 0 rt- rr1 c:: Z ......"0 0 "'T'1 ="'0 (""')
......0" 0 ro 0 0 ..... r;) 0 :::l rt-(O :::::5-S (D 0 Ill-S -S
U'l rl- :::::5 CJ 0 :::::5 0 < eo ......(0 l/IO <: ~ :::::50 .....
"'0 CJ C+C+-S l/I :::::5 eo "0 -s --' a "'0 () eo e lC c+
~ -'. -s :::r CL ro.. --' -S \0 ...... rt rom ....... -t, """j ro
c+:::::5 CJ ro ...... -S 0 a~ rt --'. na..o ...... III OJ -s
() () -s :::l < -t, LI < ......~ rte-o :::::5 03 ......
:::reo c+ --'. OJ CJ ..... ...... (""') eo c+ a -s ...... rt l/I CJ
-'..D 0 N c+ rt :::::5 = a.. 0 VI eo -s ro-o rt- I::
::s I:: -s OJ eo --' OJ 0 ro ~ l/I VI a ...... -s t:T-t,
tel ...... l/I rt- 0 :::::5 :::I (""'):( .. VI ~ ro'<o
_"'0 ...... ::::: :::I () eo :;0--' 0 ....I. c+ --' -s -s
3 0 Vl ro I nVl ~~ rt I l/I ()
eo :::::5 n -s Vl Vl VI -s -' --' o LI
:::::5 .. C ro In c-+ -' ...... Ql ::s ...... :::::5 ~
c+ c+ro 0 ):000 VI C ..... VI VI c+-s
l/I "'0 -s -SLl e :::I l/I rt :::::5 c+ c+ -s rt
- a -s 0 < = a.. ..... ....I CJ ...... CJ ......
<+ --' 0 -t, ...... ......OJ 0 --' cr --' :::I () ()
0 CJ l.C --'.n CJ c+cr:::::5 --'. I:: --' \0 rt .....
0 -s -S rtI'D C 0.. c+ ..... CJ 0"'0
--' .. CJ CL C ...... --' c+ -s CJ
II) 3 -+, ...... c-+nro 0. ...... U'lrt
.. --' 0 rt ~U'l --'.0 .. ......
....1.:( -S.. () ......... :::l :::::5 0
< l.C ...... 0 ...... l.C VI :::I
ft) :::::5'" c+ 0- ...... :::::5 -t, ""0 ..... t:
;:r c+ :::::5'" 01 :::I c+o C c.. ::s "'0 ......
...... ..... In U'l -s -s e- ft) VI ""0 :::I
n :::I --' ..... c+ CJ :::::5 --' "'0 "0 --'
...... tel 0 (') CJ () -' ...... CJ eo ......3:
ro (') --' <+01 () -s () I'D Vl
VI CJ --' ...... c+ c+ -s n
.. --' CJ :::::5 3 ..... l/I c::
I to (0 0 ..
::s :::I
c+
I I I I I I I
t , I I I 1 I
c.. 0 rt-< n -+, ....... () ""0 a 0(""') VI ::;:
O-t, 0 CJ 0 ro :::l 0 -s -+, -t,o e CJ
I -t, -s rt- 0 CJ l/I :::I 0 -t, :::I "'0 ......
.....ro l/I ..... -S 11I"0 VI < l'l) VI Co "'0 :::::5
rt-s . 0 a.. ..... ro ro ...... -s 0 t:: --' M-
I :::::5 ...... e- () -s c. --' (') ......01
~ ...... :::::5 --' rt- < eo :;:c CJ rt- ro .....
0 :::I -S CJ --' CJ n -s -s :::::5
I:: -+, ro c+ ..... e- c+ ...... VJ "'0 III
-s 0 c+ro c+ c ......:::1 ..... 0 .. --'
VI -s -s '< ...... 0 l/I ):00 ::s l/I .....
ro 3 0 VI --' :;s rt- C VI rt- 3 l/I
...... CJ -+,0 0. CJ 0. rt- I CJ rt-
-t, c+ --' --' ...... 3 --' ...... CJ ...... :::::l ......
...... rtCJ :::I ro --' c+ --' :::::5 C :::::5
(') 0 VI -s l.C CJ CJ --' l/I -+, <Cl
I:: :::I VI c+ rt- CJ rt- CJ
In 0"01 -+, C ...... e c+CJ (') 0
rt-CJ '< :::1 0 -s 0 ...... --' rt- --t,
0 :::I c.. -s ro :::I ro 0 --' I::
30. ""0 VI --' :::I CJ -s --'
ro -S :::::5'" l/I . e ...... In c+ ro a
-s :[ ......~.. 0 -t, <.Q ..... -s n
l/I e <\0 --' ...... 0 l/I CJ
. -s CJ ;:r CJ 0- 0" :::::5 --'
7' c+ I -s 01 --'
l/I I'D m VI ro ...... n
:::::5'" :::I ..... :::I 0
0 n 0. (') n l/I :::I
LI 0 C 1:J rt-
l/I :::1 n VI ro -s
c+O c+ (') CJ
-+, -s :::::5 0 rt- n
0 OJ VI ;3 ...... rt-
-s 0 CD eo a 0
I -s -s :::I -s
, l/I VI
..
-
3
CJ
c+
ft)
-s
-'.
01
......
VI
CJ
:::I
CL
"0
C
-s
n
:::::5'"
~
l/I
......
:::::5
(Q
t5
o
IT1
r-
n
o
:::::
""0
o
Z
IT1
Z
-f
Vl
-f
~
:;:c
-f
I
c:
""0
""0
:;:c
.......g-f
o:;:c::l>
o ::l> co
:::::5::;:,
""0 rt- rr1
......0
;:0 :::1<<
cf'T1......
0 ro :;:c,
(;) .:::.<w
......
rr1
;:0 ::E:
::l>
3:
):00
n
-f
....
<
.......
-l
.......
I'T1
Vl
o
z
Ci"J
o
.......
z
'"