SR-510-001-02
EPWM: CC: CP; F:/EPWM/ADMIN/STAFFRPT/Six Cities Energy Project
City Council Meeting: January 14, 2003 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Approve Resolution Authorizing the City Manager to enter into a
Memorandum of Understanding with the California Energy Coalition
to Commence the Six Cities Energy Project
Introduction
This report recommends that City Council approve a resolution authorizing the
City Manager to enter into a Memorandum of Understanding with the California
Energy Coalition as the first formal step to commence the Six Cities Energy
Project that is described below.
Background
In 1999, the California Energy Coalition (Coalition), Santa Monica, Irvine and
Southern California Edison (SCE) conceived the Regional Energy Efficiency
Initiative (REEI). The basis of the partnership was to encourage cities to actively
embrace energy efficiency programs by creating community-based energy
efficiency master plans while in turn encouraging their serving utilities to work
with the cities to create energy efficiency programs consistent with their
respective master plans. The funding for the REEI project came from Public
Goods Funds collected by the State from every electricity and natural gas
customer which are then used for energy efficiency projects and programs.
In Santa Monica, the REEI was focused on residential and small business
customers located primarily in what was defined as the Pico Energy District.
Program implementation involved a ?bottom-up? process through which
customer/end-users and neighborhood-based organizations were able to
participate in the design of the programs that were ultimately offered. The REEI
was instrumental in achieving the successful implementation of innovative energy
efficiency programs in Santa Monica such as the following:
?
Re-Lamping Program ? over 10,000 compact fluorescent light bulbs
(CFLs) were distributed at a discounted price to low-income households,
community residents, businesses and City staff. These fluorescent lamps
are 70% more energy efficient than the incandescent bulbs that they
replace.
?
Torchiere Lamp Trade-In Event ? over 2,800 energy wasting and fire
hazardous halogen torchiere floor lamps were traded in during a one day
event at a discounted price for new dimmable fluorescent floor lamps that
are vastly more energy efficient.
?
Small Business Energy Expo ? a small business focused event was held
at the Civic Auditorium that introduced 250 attendees to the REEI,
Southern California Edison?s efficiency rebate programs, and vendors
promoting energy efficient products and services.
?
Training Seminars on Green Building Practices ? The REEI sponsored
training for building architects, engineers, planners and contractors on the
City?s Green Building Guidelines, including a special focus on increasing
the energy efficiency of new construction.
?
Refrigerator Replacement Program ? free energy efficient refrigerators
were distributed to qualifying low-income residents in exchange for their
10-year or older refrigerators.
?
Affordable Multifamily Housing Energy Efficiency Retrofits ? working with
the City?s Housing Division and Community Corporation of Santa Monica,
approximately 500 affordable housing units received energy efficiency
improvements consisting of some or all of the following: lighting
replacements, heating and cooling equipment upgrades, insulation,
weather stripping, window/door repairs, and energy efficiency training for
building managers and maintenance personnel.
?
Energy Efficiency Audits ? the REEI funded and facilitated audits of two
Santa Monica schools, several businesses in the Pico Neighborhood, and
several affordable multi-family apartment buildings.
?
Model Energy Efficiency Projects ? as a result of the energy partnership,
two affordable housing projects recently completed in the City are
considered model energy efficiency projects. These include a 34 unit
th
acquisition-rehabilitation project located at 1925-33 20 Street, and a new
44 unit Single Room Occupancy project at 502 Colorado (Colorado Court).
?
PEAK Program ? an innovative energy education program tied into the
th
science curriculum at John Adams Middle School reached all 7 grade
science students with important information on electricity generation,
environmental impacts of energy use, and the benefits of energy efficiency
in both their school and homes.
?
Civic Center Energy District ? preliminary feasibility studies were
completed to assess the opportunities and potential benefits associated
with the creation of a comprehensive district-wide approach to the
provision of heating, cooling and electricity distribution for the proposed
Civic Center Specific Plan.
Discussion
Six Cities Project
Building upon the successes of the two cities project of the Regional Energy
Efficiency Initiative, the California Energy Coalition submitted a $3.2 million
proposal to the California Public Utilities Commission in early 2002 that would
expand the REEI project to include four additional cities (Palm Desert, Moreno
Valley, Brea, and West Hollywood) in a new two year effort to create innovative
energy efficiency programs in each of the six communities. In May, 2002, it was
announced that the Six Cities Project proposal had successfully competed with
proposals from throughout the State to become a grant recipient for the full $3.2
million amount that had been requested. The approximate amount of this total
that will be allocated to efficiency programs in Santa Monica over calendar years
2002-2003 is $700,000. All of the funding from the grant will be received and
administered by the California Energy Coalition on behalf of Santa Monica and
the other cities.
The six cities included in the new project represent a half million citizens and a
tremendous diversity in terms of demographics, politics, geography and local
economic conditions. Working with the California Energy Coalition, which will
administer the project, these cities will identify target audiences (for example,
schools and their adjoining neighborhoods, a low-income housing complex, or a
particular business district) where customers have common energy needs. By
working together, the six cities can learn from one another, share lessons, and
even engage in a friendly competition to create synergies and mutual benefit.
The Six Cities Project focuses on ?underserved? utility customers, notably senior
citizens in mobile homes, hard-to-reach low-income customers in multi-family
housing, low to moderate income owner-occupied households, students and
school districts, municipal facilities, and small businesses. Through the forging of
effective partnerships, it is envisaged that the cities, their utilities, and
community-based organizations can break down the barriers to a more efficient
and secure energy future. During 2002-2003, the Six Cities Project goal is to
achieve over 15 million kilowatt-hours of annual electricity savings and over 100
million kilowatt-hours of electricity savings over the life of the measures that will
be installed by working with the targeted sectors in each community. This level of
projected savings would represent more than $2 million a year between the six
participating cities.
Next Steps
City staff is currently working with the California Energy Coalition to finalize the
palate of efficiency programs that will be offered in Santa Monica. Staff and the
Coalition have met with City Housing Division staff and representatives of the
Community Corporation of Santa Monica to identify the best opportunities for
additional programs to be directed at affordable housing, one of the priority
customer categories for the City.
At present, it is likely that the finalized set of program initiatives will include
support for affordable housing energy efficiency and other residential energy
efficiency, a small business energy efficiency retrofit program, continued
concentration of energy efficiency efforts in the Pico Energy District, a
continuation and expansion of the PEAK program in the School District to reach
1,200 students, strategic retrofits and renewable energy installations at City
facilities, and a pilot community renewable energy installation program. The final
program mix will also include community outreach, efficiency campaign
coordination, program measurement and evaluation, and project administration
by the California Energy Coalition.
The remaining funds that are available in the already budgeted Community
Energy Efficiency Fund account (approximately $500,000) will be programmed in
conjunction with the Six Cities Project implementation to ensure as broad and
significant a community energy efficiency impact as may be possible over the
next year. The total energy efficiency and renewable energy programs
investment in the Santa Monica community will therefore total $1.2 million
dollars.
Budget/Fiscal Impact
There is no budget impact to Santa Monica from entering into the proposed
Memorandum of Understanding and becoming a member of the Six Cities
Energy Project. All of the project funding agreements are held and will be
managed by the California Energy Coalition. The Coalition will also be
responsible for project administration, measurement and evaluation reporting,
and all fiscal accounting. The City energy efficiency funds that will be used for
additional community energy efficiency efforts to be managed by City staff
simultaneous with Six Cities Project implementation are already budgeted in CIP
account number C01076302.589000.
Recommendation
It is recommended that City Council approve the attached resolution authorizing
the City Manager to enter into a Memorandum of Understanding with the
California Energy Coalition and approve Santa Monica?s participation in the Six
Cities Energy Project as described in this report.
Prepared by: Craig Perkins, Director of EPWM
Susan Munves, Energy/Green Buildings Coordinator
Attachments: Resolution
RESOLUTION NUMBER ____ (CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA AUTHORIZING THE CITY MANAGER TO ENTER INTO A
MEMORANDUM OF UNDERSTANDING WITH THE CALIFORNIA
ENERGY COALITION, A CALIFORNIA NON-PROFIT AGENCY.
WHEREAS, reducing energy consumption and costs benefits the
City, its residents, and its business community by conserving material and
economic resources;
WHEREAS, the California Energy Coalition has demonstrated its ability to
reduce energy consumption and costs by working with Southern California
municipalities, including the cities of Santa Monica and Irvine, to provide energy
efficiency programs;
WHEREAS, the City of Santa Monica wishes to contract with the
California Energy Coalition through the Six Cities Energy Project, which will be
undertaken with the cities of West Hollywood, Irvine, Brea, Moreno Valley and
Palm Desert;
WHEREAS, the goals of the Six Cities Project in Santa Monica are to reduce
energy costs for households and small business, and reduce the negative
environmental impacts associated with energy production and use; and
WHEREAS, in order to ensure that the project meets the City?s intended
energy efficiency goals and targets, City staff will coordinate all of Santa
Monica?s programs related to the traditionally ?under-served? utility customer
groups through the Six Cities Project;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Manager is authorized to enter into a Memorandum
of Understanding with the California Energy Coalition (CEC), a registered non-
profit organization of the State of California, to provide energy efficiency
programs and services to under-served areas and populations of Santa Monica.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution,
and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
___________________________
MARSHA JONES MOUTRIE
City Attorney