SR 09-27-2011 3M�memo
City of City Council Report
Santa Monica
City Council Meeting: 9/2712011
Agenda Item: 3_0
To: Mayor and City Council
From: Dean Kubani, Director — Office of Sustainability and Environment
Subject: Community Energy Partnership Resolution
Recommended Action
Staff recommends that the City Council adopt the attached resolution authorizing the
City's continued participation in the Community Energy Partnership, an energy
efficiency program for local governments coordinated by The Energy Coalition, a
California non - profit corporation.
Executive Summary
The Energy Coalition receives Public Goods funding (utility bill surcharges for energy
efficiency programs) from Southern California Edison and The Gas Company to
facilitate implementation of the Community Energy Partnership (CEP) energy efficiency
program. The CEP is comprised of seven participating Southern California cities
(including Santa Monica), The Energy Coalition, Southern California Edison and The
Gas Company. Funding for the CEP is received and administered through The Energy
Coalition on behalf of Santa Monica and the other cities. The CEP program provides
enhanced incentives for municipal energy efficiency projects and technical assistance in
identifying and calculating savings for energy efficiency projects in municipal operations.
The Energy Coalition, as facilitating partner in the CEP, bears primary responsibility for
project management, performance tracking and implementation of energy efficiency
programs. The attached resolution is a requirement for continued participation in the
CEP.
Background
In 1999 Santa Monica became a founding member of the CEP which has been a model
for municipal energy conservation programs statewide. The last resolution authorizing
the City's participation was passed in 2007. Since 2004 the City has achieved 314,270
kWh in annual municipal energy savings through participation in the CEP.
Adoption of a resolution expressing support for and participation in the CEP program at
some time during the program cycle is one of the requirements for participation in the
program.
Discussion
The CEP is funded by the Public Goods Charge paid by ratepayers. It is a partnership
among Southern California Gas Company, Southern California Edison, The Energy
Coalition, and seven Southern California Cities (Brea, Cathedral City, Corona, Irvine,
Moreno Valley, San Bernardino, Santa Clarita, and Santa Monica). The CEP is
administered by the Energy Coalition in partnership with Southern California Edison and
Southern California Gas Company under the auspices of the California Public Utilities
Commission.
There are numerous fiscal benefits from the City's participation in the CEP, including:
• Enhanced utility incentives for municipal energy efficiency projects
• Technical assistance with identifying and evaluating energy efficiency projects
• Support in identifying grants associated with energy saving improvements
• Assistance with establishing energy policies and procedures
For example, Edison's base rebate is 5 cents /kWh saved for most efficiency projects.
Participating in the CEP program increases the City's rebates by at least 3 cents /kWh
and up to 12 cents /kWh as the City achieves higher levels of conservation. Rebates are
generally capped at 50% of project cost, but participation in the CEP raises the cap to
80% of project cost, significantly improving the financial viability of energy efficiency
projects at municipal facilities. The Energy Leadership Program run by the CEP also
provides technical assistance in the form of energy audits, project management and
utility communication. The CEP allows the City to leverage outside funds to improve
municipal energy efficiency.
E
The 2010 -12 CEP program for Santa Monica will create municipal savings through
reduced utility bills and enhanced utility rebates and incentives.
Financial Impacts & Budget Actions
There is no immediate budget/financial impact associated with this recommended
action. No membership fee or annual dues are required to participate in the CEP, and
there are no required fees or dues associated with the Energy Coalition.
Prepared by: Matt Henigan, Energy Efficiency Engineer
Approved:
Dean Kubani
Director OSE
Attachment: Resolution
3
Forwarded to Council:
Rod Gould
City Manager
Reference Resolution No.
10612 (CCS).