sr-011111-3bCity Council Meeting: January 11, 2011
Agenda Item: 3-B
To: Mayor and City Council
From: Dean Kubani, Director Office of Sustainability and the Environment
Subject: Acceptance of Southern California Edison Grant Funds for Energy
Efficiency Strategic Planning
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to accept a grant from Southern California Edison in
the amount of $374,000 and execute related agreements to fund approved
energy efficiency strategic planning activities through December 31, 2012.
2. Authorize budget changes as outlined in the Financial Impacts & Budget Actions
section of this report.
Executive Summary
The California Public Utilities Commission (CPUC) authorized Southern California
.Edison (SCE) to fund local governments to conduct strategic planning activities
supporting the CPUC's Long-Term Energy Efficiency Strategic Plan through the current
funding cycle ending October 15, 2012. SCE conducted a solicitation and the City will
receive up to $374,000 of public goods funds for implementation of the following
strategic planning strategies: 1) Title 24 code enforcement trainings for code
enforcement staff; 2) development of an energy efficiency revolving loan fund; 3)
preparation of a retro-commissioning policy and plan for City facilities to ensure that
municipal buildings use energy efficiently; and 4) development of an energy efficiency
project management system to provide energy efficiency incentive information to
building permit applicants.
Discussion
Recognizing local governments' significant role in implementing elements of the State's
Long-Term Energy Efficiency Strategic Plan, the CPUC authorized SCE in April, 2010 to
distribute $32 million of public goods funds to local governments participating in SCE's
Energy Efficiency Partnership Program. The goal of the solicitation was to codify and
institutionalize energy efficiency in local governments' policies, programs and processes
to establish a culture of energy efficiency. The City has been awarded $374,000 for
implementation of the following tasks:
1. Energy Code Enforcement Training: The City will hold a minimum of six training
sessions for building officials and plan check and inspection staff to enhance
attendees' ability to enforce Part 6 of the State of California's Building Standards
.Code, known as Title 24, and the City's energy performance code requirements.
SCE grant - $44,000
2. Energy Efficiency Revolving Loan Fund: The grant will fund development of an
accounting procedure in which savings generated by energy efficiency measures
in City facilities is recovered for reinvestment in new City energy efficiency
projects. A financial consultant will collaborate with City staff in developing
policies and procedures. The City has identified $100,000 in an existing capital
improvement project account to use for the seed capital of a pilot energy
efficiency revolving loan fund. The energy efficiency projects funded by the
revolving loan fund will be tracked for cost and energy savings and a repayment
schedule to the revolving loan will be established. SCE grant funds are restricted
to development and implementation of a financial framework which can be used
as a model for other cities. SCE grant - $50,000
3. Municipal Facility Retro-commissioning Study and Policy: Grant funds will be
used to develop a methodology for identifying prime candidate City buildings for
retro-commissioning projects. The retro-commissioning process improves how
building equipment and systems function together. Depending on the age of the
building, retro-commissioning often resolves problems that occurred during
design or construction, or addresses problems that developed throughout a
building's life. The goal is to improve building operations and maintenance
(O&M) procedures to enhance overall building performance, reduce energy use
and operating costs. The methodology identified in Santa Monica will establish
energy, cost, and maintenance savings estimates to assist other jurisdictions in
identifying prime municipal building candidates. SCE grant - $50,000
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4. Community Energy Efficiency Project Management System (CEEPMS): Grant
funds will be used to hire a computer consultant to create an online system that
will provide Santa Monica and the City of Brea building permit applicants with
reports of estimated energy and greenhouse gas emission savings associated
with their respective projects in addition to information about relevant energy
efficiency programs, incentives. and rebates. The consultant will develop a
CEEPMS base model independent of the cities' online permitting systems. When
the base model is completed, CEEPMS users will evaluate the system and a
report will be prepared for the cities and SCE. If acceptable to the cities, the
consultant will integrate the CEEPMS in each city's online building permit
system. Training for Santa Monica and Brea staff on the use and operation of
the CEEPMS base model will be provided, and a guide on using the CEEPMS
will be developed and shared with other cities. Santa Monica will serve as the
lead agency on the grant and will be responsible for reporting and grant
administration. The grant funds will be used primarily for the consultant, but staff
time and equipment costs can be reimbursed out of the grant funds. SCE grant
- $230,000
The CPUC will approve SCE's submitted plan to distribute the $32 million of grant
funding in January, 2011. The contract between SCE and the City will terminate on
December 31, 2012, to coincide with the end of the 2010-2012 energy efficiency funding
cycle when all tasks must be completed.
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Financial Impacts & Budget Actions
The following FY 2010-11 budget changes will be needed to record receipt of the SCE
grant funding:
1. Establish a revenue budget in the amount of $374,000 at Account Number
20226.405630.
2. Appropriate the grant funds to the following account: 20226.570280.
Prepared by: Susan Munves, Energy and Green Building Programs Administrator
Approved:
~~~~ ,
Dean Kubani
Director, Office of Sustainability and the
Environment
Forwarded to Council:
a
Rod~Gould
City Manager
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