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SR 11-14-2017 3D City Council Report City Council Meeting: November 14, 2017 Agenda Item: 3.D 1 of 4 To: Mayor and City Council From: Susan Cline, Director, Public Works, Office of Sustainability & the Environment Subject: Adopt Resolution to Join the West Side Energy Partnership Recommended Action Staff recommends that the City Council adopt the attached resolution to join the West Side Energy Partnership. Executive Summary Santa Monica has long been a leader in sustainability, including energy efficiency. In 1998, Santa Monica joined seven other cities, Southern California Edison and Southern California Gas in a coalition called the Community Energy Partnership (CEP). Administered by the Energy Coalition, this partnership is the result of statewide energy efficiency efforts funded by the California Public Utilities Commission (CPUC). Through these partnerships, cities are better positioned to take advantage of available incentives and educate their communities about sustainable energy practices. Due to a 2016 CPUC mandate, cities must now join regional energy partnerships such as the West Side Energy Partnership (WSEP). As a result, the existing CEP coalition consisting of geographically disparate regions in Southern California is being dissolved. The City seeks to join the WSEP, which requires Council adoption of a resolution. The City would continue to receive the same technical assistance and incentives in this partnership as before. Background When the Community Energy Partnership (CEP) was first conceived, the intent was for cities to use their expertise to play a leadership role in their facilities and cities. Through the hard work of the Partner Cities, the CEP has been very successful in delivering 2 of 4 energy savings in both municipal facilities and to their constituents. More recently, Local Government Partnerships have developed in a regional nature. Regional partnerships allow for greater collaboration with neighboring communities, greater regional customization and the ability to meet with other partners due to their close proximity. In 1992, the City of Irvine established the Community Energy Partnership (CEP) with Southern California Edison (SCE), Southern California Gas, The Energy Coalition and seven other Southern California cities to create energy efficiency at the local government scale. Santa Monica joined the CEP in 1998. Other CEP partner cities are Culver City, Brea, Corona, Moreno Valley, San Bernardino and Santa Clarita. The CEP provided cities with access to technical assistance, rebates and incentives, and additional funding for planning and community engagement. The CEP became a model for what is known broadly as a Local Government Partnership (LGP), which is now instituted across the state to support other local governments. LGPs support three broad objectives for the State of California: 1) retrofit of local government buildings; 2) promotion of utility core programs; and 3) support of qualified energy efficiency activities included in the Statewide Long Term Energy Efficiency Strategic Plan. On April 10, 2007, Council adopted a resolution re-authorizing the City’s participation in the Community Energy Partnership (Attachment A). On September 27, 2011, Council adopted a resolution again re-authorizing the City’s participation in the Community Energy Partnership (Attachment B). Since local energy partnerships are now more prevalent and formed more regionally than broader coalitions, in 2016 the CPUC directed cities and utilities to join or form regional energy partnerships. Investor-owned utilities are required by the CPUC to file an Advice Letter in order to eliminate or modify energy efficiency programs. In January 2017, SCE filed an advice letter to discontinue the CEP in July 2017 and move cities 3 of 4 within this partnership to regional partnerships. SCE proposed moving the City of Santa Monica to the West Side Community Energy Partnership. In addition, SCE proposed the following changes for previous CEP partner cities: move the City of San Bernardino to SANBAG, the City of Moreno Valley and the City of Corona to the Western Riverside Energy Leader Partnership, the City of Irvine to the Orange County Cities Energy Leader Partnership and the City of Santa Clarita to the West Side Community Energy Partnership. Discussion Santa Monica and Santa Clarita have been directed by SCE to join the West Side Energy Partnership (WSEP) started by Culver City. Member cities would again work in collaboration with Southern California Edison, SoCalGas and The Energy Coalition as partners in implementation. Within the CEP program, Santa Monica has achieved over 20% in energy savings, compared to a 2006 baseline. This achievement qualifies the City for Platinum level status, which will provide increased incentives when the City applies for energy efficiency rebates. Improving energy efficiency through these energy partnerships directly ties into the City’s sustainability goal to reduce greenhouse gas emissions at least 80% below 1990 levels by 2050. In order to join the WSEP, Council must adopt a resolution to reflect the official transfer. Santa Monica would continue to participate in a similar fashion in the CEP throughout the transition and would be offered the same advantages, incentives and support as other energy partnerships. The WSEP will consist of both veteran cities with experience in energy partnerships, and new cities without such previous experience. It is expected that the veteran cities will assume an informal mentorship role with the new cities. There are no formal requirements besides the resolution adoption and monthly membership meetings. The partnership is a platform for cities to learn from each other and share best practices. 4 of 4 Energy Efficiency Highlights The LGP is structured around achieving energy efficiency milestones and participating in utility programs and community engagement efforts. Achieving milestones earns the City a higher level of recognition (from Value, Silver and Gold, to Platinum) and thus a higher level of incentives when applying for energy efficiency rebates. With the recent installation of over 1,200 LED streetlights, the City has saved over 4 million kWh, or 20%, compared to its 2006 baseline. This achievement has completed the energy efficiency requirement (20% savings below baseline) necessary to earn Platinum status in the LGP. Financial Impacts and Budget Actions There is no financial impact as a result of the City’s transition to the West Side Energy Partnership. Prepared By: Garrett Wong, Sustainability Analyst Approved Forwarded to Council Attachments: A. Council Meeting April 10, 2007 B. Council Meeting Sept 27, 2011 C. Resolution for West Side Energy Partnership REFERENCE – RESOLUTION NO. 11088 (CCS)