SR-100-000-06 (4)
EPWM: CC: CP; SM:/EPWM/EPDSTAFFRPT/CEP
City Council Meeting: June 22, 2004 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Adopt Resolution Authorizing the City Manager to enter into a
Memorandum of Understanding with the California Energy Coalition
to Commence the Community Energy Partnership
Introduction
This report recommends that City Council adopt 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 Community Energy
Partnership.
Background
In 2002, the California Energy Coalition submitted and won a $3.2 million
proposal to the California Public Utilities Commission for the creation of the Six
Cities Project (comprised of Santa Monica, Irvine, Palm Desert, Moreno Valley,
Brea, and West Hollywood) in partnership with Southern California Edison (SCE)
for the delivery of energy efficiency programs tailored to the needs of each city.
Over the past two years, the Six Cities Project has delivered innovative energy
efficiency programs focusing on “underserved” utility customers, notably hard-to-
reach low-income customers in multi-family housing, low to moderate income
1
owner-occupied households, students and school districts, municipal facilities,
and small businesses in each of the six communities.
The California Energy Coalition administered all of the funding from the grant on
behalf of Santa Monica and the other cities. Approximately $700,000 of the $3.2
million total was allocated to efficiency programs in Santa Monica. A total of 15
million kilowatt-hours of annual electricity savings were created in all six cities;
approximately 4 million kilowatt-hours of which were created in Santa Monica.
The 4 million kilowatt-hours in annual savings will result in over 20 million
kilowatt-hours of savings over the life of the products installed, or $3 million in
electricity savings that will now remain in the community.
Discussion
The Energy Coalition has recently been awarded a $5.2 million contract for the
next two year (2004-2005) funding cycle by the California Public Utilities
Commission. The Six Cities Project has been expanded to include ten cities,
adding Cathedral City, Corona, San Bernardino, and Santa Clarita. Now known
as the Community Energy Partnership, the endeavor will include the Gas
Company in addition to SCE. The Energy Coalition will continue to coordinate
program activities and administer funding on behalf of all the cities.
Santa Monica has been allocated $500,000 of the $5.2 million total grant for the
current funding cycle. The reduced allocation ($700,000 to $500,000) reflects
2
Santa Monica’s longer participation and higher level of energy efficiency already
achieved. The cities that received a smaller allocation during the last funding
cycle will now receive an increased percentage of the funds. City staff is currently
working with the Coalition to finalize the palette of efficiency programs that will be
offered in Santa Monica during 2004-2005. It is likely that the finalized set of
program initiatives will continue to concentrate resources on the Pico
Neighborhood Energy District, offering support for affordable housing energy
efficiency, other residential energy efficiency through the Community Energy
Efficiency Tune Up Program, and the Small Business Energy Efficiency Tune Up
Program. In addition to the $500,000 in efficiency programs, the PEAK Program,
an innovative energy education program tied into the science curriculum at John
th
Adams Middle School, will continue to be offered to 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.
Community outreach, efficiency campaign coordination, program measurement
and evaluation, and project administration by the California Energy Coalition. are
also funded by the project.
Budget/Financial Impact
There is no budget impact to Santa Monica from entering into the proposed
Memorandum of Understanding and becoming a member of the Community
Energy Partnership. All of the project funding agreements are held and will be
managed by the California Energy Coalition. The Coalition will also be
3
responsible for project administration, measurement and evaluation reporting,
and all fiscal accounting.
Recommendation
It is recommended that City Council adopt 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 Community
Energy Partnership as described in this report.
Prepared by: Craig Perkins, Director, Environmental and Public Works Management
Susan Munves, Energy/Green Building Administrator
Attachments: Resolution – See Adopted Resolution No. 9960 (CCS).
4