HomeMy WebLinkAboutStaff Report 101-10TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: JANUARY 11, 2010
REPORT TYPE: INFORMATIONAL
DEPARTMENT: UTILITIES
CMR: 101:10
SUBJECT: Annual Report on Utilities Department Efficiency, Conservation, and
Renewable Programs
This is an information report and no action is required.
BACKGROUND
The Utilities Department is required to report annually on the results of its energy efficiency and
renewable energy programs. The annual report for achievements in Fiscal Year 2008-2009 is
made to the California Energy Commission (CEC) and is included in Attachment A. The report
was presented to the Utilities Advisory Commission (UAC) at the January 6, 2010 meeting for
information.
The energy efficiency report is responsive to Senate Bill 1037 (Kehoe, SB 1037), signed into
California law by Governor Schwarzenegger on September 29, 2005. This law established
several important policies regarding energy efficiency. Among the provisions of the law is a
statewide commitment to developing cost-effective and feasible energy efficiency programs.
Additionally, the laws underscores the expectation that all utilities consider energy efficiency
before investing in any other resources to meet growing demand. SB 1037, with supplemental
provisions added by the passage of Assembly Bill 2021 (AB 2021), required for the first time
that publicly -owned utilities had to report on their energy efficiency programs to the CEC. The
Northern California Power Agency (NCPA) developed a collaborative framework to help guide
its municipal and rural cooperative members in developing the Evaluation, Measurement, and
Verification (EM&V) plans necessary to meet the new regulatory requirements. The City of
Palo Alto Utilities Department (CPAU) is currently finalizing its annual report on energy
efficiency and EM&V results to send to NCPA for inclusion in the coordinated statewide report
of energy efficiency results among publicly -owned utilities.
With respect to renewables programs, CPAU is required to report annually on the progression of
solar electric (PV) installations. Program guidelines for the PV rebates were developed under
SB 1 in 2006. The CEC has guidelines for program implementation that all utilities statewide
must follow in developing, implementing, and reviewing their PV rebate programs. CPAU has a
successful incentive program for the installation of PV systems and reports annually on this
program, as required. The attached report includes the PV update, as well as information about
the Solar Water Heating (SWH) program and PaloAltoGreen.
Also included in this report is a historical review of expenditures for efficiency and renewable
programs by utility and by program function. The output of the efficiency cost effectiveness
CMR: 101:10 Page 1 of 4
model, which will be in the statewide report sent to the CEC, is included for the Council's
review.
DISCUSSION
The attached report (Attachment A) summarizes achievements toward reaching energy efficiency
goals, including annual energy savings, as required by AB 2021 and SB 1037, the Ten Year
Energy Efficiency Plan, the 2005 Urban Water Management Plan, water Best Management
Practices (BMPs), and solar electric installations goals (SB 1). The report shows that electricity
programs, as measured by the Total Resource Cost (TRC) Test have benefits that exceed costs by
about two and one-half times. The TRC compares cost and benefits of programs at the societal
level and is the required benefit cost analysis tool for energy efficiency programs in the state.
Programs are expected to have a ratio of one or greater, where benefits are equal to or exceed
costs.
This report includes information on each program, including achievements and changes to the
programs to meet these goals. A listing of programs as described in Appendix D of Attachment
A is provided below:
CMR: 101:10 Page 2 of 4
Customer Class
Availability
Program Name
Description
Residential electric,
water, and gas
Smart Energy program
Rebate customers for purchasing and installing energy
efficient appliances, insulation, furnaces, pool pumps, water
heaters, and other items.
Residential electric
Refrigerator Recycling
Rebate customers $35 for an old working refrigerator. Unit
recycled.
Residential electric,
gas, water
Residential New
Construction Rebate
Rebate customers who exceed City's Green Building
Ordinance up to $900.
Residential electric
and gas
Low Income
Residential Energy
Assistance Program
(REAP)
An energy specialist visits residents' homes and performs a
free energy audit. Recommendations are given for energy
saving measures. Replacements and repairs are made to
insulation, weather stripping, lighting, refrigerators, and
furnaces (if needed).
Residential electric,
gas, and water
Residential Home
Energy Audit
On -Line energy audit of household energy use. In -home
water wise audit available.
Residential electric,
gas, and water
Green@Home
Acterra provides free in -home energy audits and electric
meter information (blue line power monitors).
Residential electric,
gas, and water
Training and
Workshops
Workshops on energy and water conservation issues for the
public.
Residential water
Water Conservation
Programs
Work with Santa Clara Valley Water District to ensure
customers receive audits and rebates for water conservation
projects, including toilet replacements, washers, lawn
replacements, and other areas.
Small Business
electric and gas
Right Lights+
Contractor performs energy audit on facility, recommends
changes, assists customer in making upgrades, and
completes paperwork for rebate.
Business electric and
gas
Commercial
Advantage Program
(CAP)
Rebates on installation of the following energy efficient
equipment types: lighting, HVAC, chillers, boilers, food
service, refrigeration, office equipment, appliance, &
custom saving programs.
Business electric, gas
and water
Business New
Construction Rebates
Rebates for new construction exceeding City and state
energy requirements.
Business electric
Data Center Efficiency
Program
Rebates for server virtualization and other data center
efficiency measures.
Business electric and
gas
Commercial &
Industrial Energy
Efficiency Program
Commissioning and installation assistance for large
businesses installing efficiency measures.
Business electric and
gas
Efficiency Programs
for Commercial
Kitchens
Direct installation assistance for efficiency measures in
commercial kitchens.
Business water
Water Conservation
Programs
Work with Santa Clara Valley Water District to ensure
customers receive audits and rebates for water conservation
projects.
Business electric,
gas, and water
Training
Various training and workshops for business customers.
Business electric,
gas, and water
Large Customer
Facility Manager
Meetings
Training on a variety of efficiency measures, from chillers
to LEED certification on buildings.
Business electric,
gas, and water
MeterLinks
On -Line access to metered utility usage for large customers.
All electric customers
PV Partners
Rebates for installation of solar electric (PV) systems.
All gas customers
Solar Water Heating
Rebates for installation of solar water heating systems.
All electric and gas
customers
Ground Source Heat
Pump
Information to help customers implement ground source
heat pump systems.
All electric customers
PaloAltoGreen
Supports wind and solar generation by purchasing
renewable energy credits up to 100% of a customer's
energy usage.
CMR: 101:10
Page 3 of 4
ATTACHMENT:
A. City of Palo Alto Utilities Demand Side Management Program; Energy Efficiency, Water
Conservation and Renewable Energy Measures for Fiscal Year 2008-2009
PREPARED BY:
REVIEWED BY:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
JOYCE KINNEAR
tilityarketing Services
TOM A-IIZENNE
Assistant Director,
Customer Support Services Division
VALE ' t 1. ' ONG
Director of Utilities
S KEENE
anager
CMR: 101:10 Page 4 of 4
ATTACHMENT A
tiliti
ityof
em . n ana
am
ent
Energy Efficiency, Water
onservation and Renewa • le
En - rgy Measures for Fiscal
Year 2008-2009
CITY OF PALO ALTO
UTILITIES
Inspired by a brighter tomorrow.
December 2009
DEMAND SIDE MANAGEMENT PROGRAMS
EXECUTIVE SUMMARY 3
COUNCIL POLICIES AND PROGRAM GOALS FOR ENERGY AND
WATER DEMAND SIDE MANAGEMENT PROGRAMS 3
Program Successes 4
GOALS AND ACHIEVEMENTS IN FISCAL YEAR 2008-2009 4
Savings Goals and Achievements as a Percentage of Total Utility
Consumption 6
DSM and Renewable Programs: Updates 7
Efficiency Programs Delivered by Third Party Agencies 7
Third Party Evaluation, Measurement and Verification 8
Local Renewable Generation Installed in Palo Alto 9
Federal Government Stimulus Funds under the Energy Efficiency
Community Block Grant 9
Research and Development Projects 10
EXPENDITURES BY CATEGORY FOR CPAU DSM PROGRAMS 10
APPENDIX A: CPAU ENERGY REPORT TO THE CALIFORNIA ENERGY
COMMISSION i1
APPENDIX B: QUANTITATIVE ENERGY EFFICIENCY PROGRAM
ACHIEVEMENTS 12
APPENDIX C: HISTORICAL EXPENDITURES ON DSM AND
RENEWABLE ENERGY PROGRAMS BY UTILITY AND MAJOR
FUNCTION
13
APPENDIX D: DEMAND SIDE PROGRAM DESCRIPTIONS 15
ii
City of Palo Alto Utilities
Demand Side Management Program
Results for Fiscal Year 2008-2009
Executive Summary
This is an annual report with historical information on expenditures and energy savings from the
efficiency programs, solar electric installations, and other Demand Side Management (DSM)
implemented by the City of Palo Alto Utilities (CPAU). The report provides a summary of program
achievements, including the information on effectiveness and energy efficiency potential that is to
be provided to the California Energy Commission (CEC) in first quarter 2010. Details on the
information provided to the CEC are included in Appendices A, B, C, and D. This report also
compares achievements against the goals developed by the City in its Ten Year Energy Efficiency
Portfolio Plan, first adopted in 2007 and scheduled to be updated in early 2010. Other
requirements at the state and local level are included, as well.
Council Policies and Program Goals for Energy and Water Demand Side
Management Programs
The City Council approved a Ten Year Energy Efficiency Plan on April 2007 (CMR:216:07). This
plan developed a number of goals to meet the City's Climate Protection policy, support the Long
Term Energy Acquisition Plan or LEAP (CMR:169:06), the Gas Utility Long Term Plan or GULP
(CMR:345:03), the 2005 Urban Water Management Plan (CMR:431:05 and 455:05) as well as state
legislation mandating that energy efficiency be the first priority in seeking utility supply (Senate Bill
or SB 1037 and Assembly Bill or AB 2021 among others). According to the legislation, the Energy
Efficiency plan is to be updated and reported to the CEC every three years. Staff is currently
reviewing the potential for energy savings and will report to the Utilities Advisory Commission and
City Council with recommendations by the end of the first quarter of 2010.
The specific energy efficiency goals in the Plan are as follows:
1. Pursue all energy efficiency and demand reduction resources that are cost-effective,
'reliable, and feasible.
2. Use a community -wide perspective in program design/evaluation criteria.
3. Aim to reduce average bills.
4. Design programs for broad participation to promote equity.
5. Utilize an integrated "systems" approach to program design.
6. Track and report program effectiveness.
7. Explore technologies and rates to encourage demand reduction, conservation, and load
shifting.
8. Be innovative, tailor programs to Palo Alto's needs.
In addition, the Loading Order for energy purchases (AB 2021) requires that utilities procure first
cost-effective energy -efficiency, then renewable energy, and then low -pollution electricity from other
sources of generation. Cost-effectiveness of energy -efficiency programs for the Loading Order is
determined by the Total Resource Cost (TRC) test.
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In water conservation, the 2005 Urban Water Management Plan states that it is the goal of the City
to continue to look for opportunities, innovative technologies and cost effective programs that best
utilize the water conservation budget. It is estimated that these water conservation programs will
help reduce water purchases from San Francisco Public Utilities Commission by 4% by the year
2030. Staff is currently updating the plan for 2010 and will include Council directives to the City
Manager to work to reduce water usage by 20% by 2020 (Colleague's memo on 9/21/2009).
The City's Climate Protection Plan, approved in December 2007 (CMRs:211:07 and 435:07), in its
third chapter, outlines a number of ways that the Utilities Department can assist the rest of the City
in meeting sustainability goals. To assist in meeting these goals, the state and local requirements
mentioned above, and the needs of the community, CPAU works to ensure the following items are
achieved in its environmental programs:
1. Implement programs to support renewable power generation that increase resource
diversity and minimize adverse environmental impacts from electric generation and
operation of the utilities' systems. Enable customers to install solar electric (photovoltaic)
and solar water heating systems to provide renewable power at the customer location.
2. Follow the City's Climate Protection Plan and work to decrease greenhouse gas emissions
in the City of Palo Alto through the energy and water efficiency and renewable energy
programs.
3. Provide the DSM programs in a manner that creates value to the community and meets all
applicable legal requirements.
4. Assist all City Departments in achieving optimal energy and water efficiency at City facilities
by paying a portion of costs to reduce energy and water use through rebates and assist in
implementing new energy and water related technologies for the benefit of the City and
community.
5. Support research and development of emerging technologies to speed up market
acceptance, allowing energy efficiency and water conservation services and products to
compete in the open market.
6. Assist low-income residents in helping them to pay their electric and natural gas bills and in
installing efficient appliances and other measures.
7.- Determine the best energy and water saving programs to offer Palo Alto customers by
collecting input from community organizations, businesses and other City departments.
Program Successes
Goals and Achievements in Fiscal Year 2008-2009
• The Ten Year Energy Efficiency Plan set a target of 2,800,000 gross kilowatt hours (kWh) in
first year electric savings in 2009 or 0.28% of annual sales. Actual net first year savings for
projects completed in FY 2008-2009 were 4,667,711 kWh (equal to 51,425,595 kWh over
equipment lifetime) or 0.47% of annual electric sales. The actual level of electric savings
continues to exceed goals.
• Gross savings figures are the kilowatt hours of energy saved by customers through
implementation of programs based on state and local standards for new equipment,
i.e. if an old refrigerator is replaced, gross savings are based on the legally allowed
amount of electricity produced by any new refrigerator and comparing that figure (not
the electricity used by the old unit) with the rated performance of the actually rebated
appliance. Net savings take into account such factors as free ridership, which
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accounts for those customers who would have made the upgrade anyway, without the
impact of the utility program.
• Gas savings goals for 2009 were projected to be 86,400 therms or 0.28% of total sales,
based on first year savings for measure implementation. Actual first year savings from
efficiency programs were 148,403 therms. This level of natural gas savings through
efficiency programs represents 0.49% of total utility load. Goals were achieved for this past
fiscal year, primarily related to the new solar water heating program and an enhanced
emphasis on business natural gas and process energy usage at larger facilities.
• The 2005 Urban Water Management Plan lists saving goals as 0.37 million gallons per day
(MGD) or 3.35% of total consumption by 2010 (which is estimated to be 0.34% of savings of
the equipment's lifetime or 180,548 CCF). Actual achieved was 52,815 CCF (or 528,150
CCF for expected lifetime savings). Since total sales of water were 5,395,125 CCF, the first
year savings represented 0.98% of total consumption.
Goals for all three utilities were achieved this fiscal year. The new ten-year electric potential study
will provide new recommendations to enhance efficiency programs to continue to increase electric
savings. With the implementation of the Solar Water Heating rebate last year as well as enhanced
natural gas efficiency rebates, conservation in this commodity is expected to greatly increase in
upcoming years. Efforts in the water DSM program are also being expanded to help meet the
state's long-term water shortages.
Achievements are shown below in two tables. The first table shows savings by kilowatt hour,
therms, or CCF for individual customer programs and then the total for first year savings and
expected lifetime savings. Staff continues to report on lifetime cumulative savings as this was the
key metric used in the 2007 Ten Year Energy Efficiency Plan. Updates to the potential available for
energy and water saving in the upcoming ten year period are currently being developed with the
results being used to update the City's Ten Year Energy Efficiency Plan for the period 2010 to
2019.
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Savings By Program:
Water Savings (CCF)
Gas Savings (Therm)
Net Electric Savings (kWh)
Residential
Commercial
Residential
Commercial
Residential
Commercial
# Paid
Residential
Energy Assistance
Program (REAP)
-
2,800
535,7076
625
Residential Smart
Energy
-
30,133
362,060
1,283
Refrigerator
Recycling
421,893
271
Residential CFL's
Included with
Smart Energy
590
Refrigerator
Recycling
Included with
Smart Energy
235
Water with Santa
Clara Valley
Water District
18,777
34,038
Water
efficiency
9,327
Measures
with gas
savings
6,570
Water efficiency measures with
electric savings
2,131
Commercial
Advantage
94,639
1,869,334
20
Solar Water
Heating
725
-
3,100
7
Right Lights
1,834
1,476,586
246
1 Year Annual
Savings Totals
18,777
34,038
42,985
103,043
1,319,660
3,348,051
3,277
Water (CCF)
Gas (Therms)
Electricity (kWh)
Total Commodity
1st Year Savings
52,815
146,028
4,667,711
Total 15i Year
Savings Goals
18,055
86,400
2,800,000
Total 2008-2009
Sales
5,395,125
30,582,964
995,682,782
Total Est.
Lifetime Savings
528,150
1,460,280
51,425,595
Total Lifetime
Savings Goals
180,548
864,000
28,000,000
Note: Rebate programs are further described in Exhibit D.
Savings Goals and Achievements as a Percentage of Total Utility Consumption
Utility
Annual Savings Goal
Annual Savings
Achievements
Electric
0.28%
0.47%
Natural Gas
0.28%
0.49%
Water
0.34%
0.98%
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DSM and Renewable Programs: Updates
A listing of each of the DSM and renewable energy programs at the City of Palo Alto is given in
Appendix D at the end of this report. The table lists the name of the program and an overview of
each general program category. During the course of the past fiscal year some changes were
made to DSM programs to support customers in making efficiency improvements. In particular,
business efficiency programs were enhanced with two new programs delivered by third party
contractors. Through Enovity, the Commercial & Industrial Energy Efficiency Program (CIEEP)
offers expert engineering support at no cost to CPAU business customers. The Program's
experienced team helps customers identify and implement energy efficiency upgrades that will
result in energy savings and operations and maintenance improvements at their facilities.
Programs Delivered by Third Party Agencies
In order to increase the number and range of efficiency programs available to customers in the past
few years, CPAU has contracted with several third party agencies. Over the past two years, in
particular the number of these third party managed programs has increased. Below is a listing and
brief description of each program. Note that the CIEEP program did not begin during the year in the
status report, so information is preliminary.
• Commercial and Industrial Energy Efficiency Program (CIEEP): This program, which began
in mid -2009, is delivered by Enovity, Inc. It provides technical services and cash incentives
to identify, quantify and implement electric and natural gas efficiency projects for commercial
and industrial customers. The program provides valuable professional services at no -cost
audits and review for CPAU commercial and industrial customers with buildings larger than
30,000 square feet and/or greater than 50 kW maximum electric demand. Customers are
then assisted through the implementation and rebate application process. Specific areas of
focus for CIEEP activities include: HVAC systems, process (including compressed air and
steam systems), controls, domestic hot water, and lighting controls and energy efficient
lighting retrofits. Typically these are implemented through control setting changes,
hardware repair, and installation of new equipment.
• Green @Home Energy Audits: Delivered since 2008 by a local non-profit, Acterra, this
program sends a two -person team of trained volunteers to visit single family resident's
homes for a scheduled 2.5 hour audit. During the visit, the Green@Home team offers the'
following energy -saving upgrades: provide and install a retractable clothesline; choose a
place for three compact fluorescent light bulbs; optimize water heater and refrigerator
temperatures; install faucet aerators and low -flow showerheads; show residents how to
measure and adjust tire pressure; install up to five outlet or light switch gaskets; and
measure energy draw of home electronics.
• Meterlinks: This program has been available since 2002. Delivered by Automated Energy,
Inc., this program makes electric and natural gas usage information at 15 minute intervals
available for larger business customers through on-line software. This software has tables
and graphs of energy usage at each meter, thus allowing customers to control their electric
and natural gas consumption. Staff is reviewing the possibility of expanding this program to
more business customers.
• On -Line Energy Audits: Working with Aclara since 2004, this on-line analysis tool allows
residents to identify the ways that they can reduce energy and water usage.
• PaloAltoGreen: Since 2003, CPAU has worked with 3Degrees to provide a voluntary
program to support and increase the supply and use of wind and solar renewable energy.
Over 20% of customers are involved in this nationally awarded program.
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• Refrigerator Recycling: JACO Environmental has provided this service to remove and
recycle older, but working refrigerators and freezers for Palo Alto residents since July 2006.
• Residential Energy Assistance Program: Beginning in July 2005, CPAU has offered a
service through Synergy Companies to improve the energy efficiency of the homes of lower
income residents in Palo Alto. The program can provide insulation, weather stripping,
showerheads, compact fluorescent lighting, programmable thermostats, and even repair or
replace refrigerators and furnaces, if needed.
• Right Lights+: CPAU has worked with the non-profit company Ecology Action, since 2006 to
deliver this program of assistance to small businesses in Palo Alto. These businesses
receive fast, free, unbiased, expert assessment and recommendations tailored to their
needs in the areas of lighting, refrigeration, and vending equipment. Last year, in 2008, this
program was enhanced through a contract with National Resources Management to provide
low cost or free efficiency measures to commercial kitchens.
• Solar Water Heating: The California Center for Sustainable Energy (CCSE) has
administered the Solar Water Heating Program (SWHP) since 2008. The incentives in this
program are paid to qualified, licensed contractors to promote the installation of clean,
renewable solar water heating systems. For residential systems, the incentive is up to
$1,500 per dwelling unit. For larger systems, the incentive is a function of multiplying three
variables: $20 for closed -loop systems; Solar Orientation Factor; and Production rating of
the specific SWH collector. The maximum incentive for businesses is $75,000.
• Water Efficiency Programs: Through an ongoing operating agreement with the Santa Clara
Valley Water District, a variety of water audits, landscape and irrigation rebates, and
incentives for appliances, toilets/urinals, and operational reductions are provided to all
customers.
Third Party Evaluation, Measurement and Verification
To meet the requirements of state law, a third party consultant was also contracted with to provide
evaluation, measurement and verification services (EM&V) for the public benefits programs. The
consultant, Summit Blue, completed its first report in this area early in 2009.
The report found that Palo Alto has very well run residential and commercial DSM programs. The
program offerings to its customers are extensive and comprehensive. A customer survey as a pat of
the EM&V process found very high satisfaction levels for the residential Smart Energy program.
Customers also felt that the rebate levels were sufficient.
The impact evaluation efforts for the residential sector confirmed the claimed levels of energy
savings reported by CPAU for these programs. The impact evaluations for the non-residential
programs were verified overall with an actualization rate of 124% (actual savings were greater than
those reported). The report pointed out a number of issues that affected this realization rate.
• The most important is the issue of building client turnover with the potential result of
remodeling and the loss of the energy efficiency improvements in the commercial Right
Lights program.
• The refrigerator gaskets appear to be an effective addition to the Right Lights program.
• However, installed CFLs were found to be no longer in use for a variety of reasons. Here,
Summit Blue recommended that screw -in CFLs be dropped from the Right Lights program
with the only CFL option being CFL fixtures. Screw -in CFLs can become uninstalled easily.
All in all, electric efficiency results were actually found to exceed those reported to the California
Energy Commission (CEC). A second annual EM&V report is currently being completed and will be
delivered to the CEC, as required, by March 2010.
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Local Renewable Generation Installed in Palo Alto
Solar Electric (Photovoltaic or PV)
The PV Partners Program continues to be one of the most successful in the state. The City
received awards from three different organizations in 2009 for the solar activities of the City, its
residents, and its businesses. Environment California, a statewide nonprofit environmental group,
analyzed the amount of solar power installed to -date in California on a city by city basis. This
organization announced that Palo Alto as a city is home to one of the largest numbers of solar roof
installations as well as largest amount of solar (in kilowatts) in the state. The NorCal Solar
Association presented the Mayor with an award for being one of the top three cities in Northern
California in the categories of Total Watts Installed and Watts per Capita Installed during the
calendar year 2008. Finally, the Solar Electric Power Association acknowledged the City of Palo
Alto as being the electric utility with the third highest rate in the country in the category of Total
Solar Watts Installed per Customer during the calendar year 2008 category. Utilities and Building
Departments approved the installation of 49 systems in FY 2008-2009, for a total of 1.07 megawatts
of installed solar electric capacity. As of June 30, 2009 there are 342 PV installations with the total
capacity of 2,204 megawatts (1.1% of Palo Alto system peak load).
Solar Water Heating (SWH)
CPAU launched the solar water heating (SWH) program in May 2008, ahead of a state law
requiring natural gas utilities to offer solar water heating incentives. This program offers rebates of
up to $1,500 for residential systems and up to $75,000 for commercial and industrial systems. The
rebates are calculated based on three factors: $20 per square foot of collector area for closed -loop
systems, solar orientation factor, and the production rating of the specific SWH collector. The
rebate is paid to the contractor, who uses the rebate to reduce customers' upfront costs. Both
contractors and customers are required to go through training on the rebate process, a good
functioning SWH system, and how to ensure that the systems are well maintained. All installations
are inspected for quality and program compliance by an independent contractor. In Fiscal Year
2008-2009, seven rebates were paid, with an additional 11 in process. The rebates paid totaled
$8,230 and resulted in 3,100 kilowatt hours of electricity and 725 therms saved each year.
PaIoA4toGreen
The award winning program, PaloAltoGreen, has been in place in Palo Alto since 2003. The
program allows businesses and residents of the city to sign up for the nation's top -ranked voluntary
renewable energy program, PaloAltoGreen. These customers purchase 100% wind and solar
energy, in the format of renewable energy credits from sources in California and other western
states. As of December 2009, over 20% of Palo Altans remain in the program. Due to the
economic downturn, "churn" in the program has increased, as more customers leave the program.
Sign-ups have remained high, keeping the total percentage participation rate at nearly the same
levels as in the previous year.
Federal Government Stimulus Funds under the Energy Efficiency Community Block Grant
The Energy Efficiency Community Block Grant (EECBG) program was created by Congress in 2007
and was funded for the first time by American Recovery and Reinvestment Act (ARRA) of 2009 with
an appropriation of $3.2 billion. The EECBG Program is administered by the Office of Energy
Efficiency and Renewable Energy of the U.S. Department of Energy (DOE). On March 26, 2009,
DOE announced the EECBG formula grant allocations, and the City of Palo Alto was eligible to
receive up to $663,000. Funds were actually received on October 27, 2009.
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Due to the EECBG timing constraints and limitations, the staff review team recommended to
Council (CMR:239:09) that only those new technology demonstration projects that were already of
interest to the community, and which had received preliminary City approvals, be included in the
application. The two demonstration projects developed for the EECBG application included the
early replacement of High Pressure Sodium (HPS) street lights on selected streets with Light
Emitting Diode (LED) streetlights and the implementation of a Home Energy Report for residential
customers. The EECBG funds to be allocated to the LED Streetlight Project and the Home Energy
Report project are $450,000 and $213,000 respectively.
Research and Development Projects
During fiscal year 2007-2008, R&D achievements included working with the Palo Alto Medical
Foundation to install a customer -sited wind generation system and undertaking an LED/Induction
Streetlight pilot project in town. Staff has been evaluating alternative streetlight technologies that
are considered more energy efficient and can result in lower operating costs than the existing High
Pressure Sodium (HPS) streetlights installed throughout the City. For the streetlight pilot project, a
number of Light Emitting Diodes (LED) and induction fixtures have been mounted around City Hall
as well as on the residential streets of Colorado and Amarillo Avenues since late June. The light
output from both LED and induction fixtures are much whiter than that of the HPS lights. After a
period of feedback solicitation and a citizen tour of the test locations, it appears that an LED light
with light with a warmer color output should be used for a future test before moving forward with a
fuller implementation of these lights throughout the City.
Expenditures by Category for CPAU DSM Programs
Palo Alto has expended about $16 million for Demand Side Management Programs between Fiscal
Year 2003-2004 and 2008-2009. For the Fiscal Year 2008-2009, just under $4.5 million was spent
from public benefit and supply funds. CPAU estimates that it will spend about $6 million in fiscal
year 2009 to 2010 from the operating budget and transfers from reserves for DSM programs. Of
this money, $4.8 million was from electric public benefit a • supply budgets, about $800,000 from
natural gas public benefit, and just under $500,000 fro
The most heavily pursued programs fund energy efficiency and water conservation measures, an
these programs consumed just below 53% of expenditures during the entire period under review.
In the area of renewable energy, CPAU has supported solar photovoltaic and other renewable
energy programs at about 32% of all program funds. Low income program and Research and
Development (R&D) were 4% and 1 %, respectively. The remainder of the funds was used for Key
Account Management services and program administration, as shown in Appendix C.
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Appendix A: CPAU Energy Report to the California Energy Commission
The information below will be included with a California Municipal Utilities Association report to the
California Energy Commission. The report, required by state law, shows the success of Palo Alto's
energy efficiency programs in reducing electric consumption. Efficiency programs are required to
be the first resource used by the electric utility. The programs are also required to be cost effective,
which in state terms means that the programs achieve a TRC score of at least 1.0. Palo Alto's
programs are cost effective and do report an effectiveness ratio two and one half times the state's
required level.
Palo Alto
Program Sector
(Used in CEC Report)
Units
Install
ed
Resource Savings Summary
Net Net Gross Net
Demand Peak Annual Annual
Savings kW kWh kWh
(kW) Savings Savings Savings
Net
Lifecycle
kWh
savings
Net
Lifecycle
GHG
Reduction
s (Tons)
Appliances
290
2
2
48,006
38,405
384,048
212
HVAC
22
2
1
8,550
6,840
123,120
79
Appliances
343
3
3
15,092
12,074
156,957
87
Consumer Electronics
HVAC
Lighting
8,953
427
89
1,023,296
818,637
9,222,662
4,927
Pool Pump
7
5
3
9,800
7,840
78,400
43
Refrigeration
658
71
71
559,874
447,899
8,062,186
4,373
HVAC
81
5
5
19,180
15,344
306,881
173
Water Heating
Comprehensive
Process
1
2,262
1,810
21,715
12
HVAC
203
7
7
1,157,899
926,319
9,889,412
5,265
HVAC
Lighting
3,412
354
321
2,199,922
1,759,938
19,379,044
10,732
Process
Process
Refrigeration
21
65
65
787,197
629,758
3,770,540
1,988
HVAC
Process
7
896
717
9,318
5
Comprehensive
24
883
883
2,664
2,131
21,312
11
Other
10
SubTotal
14,032
1,825
1,452
5,834,639
4,667,711
51,425,595
27,908
EE Program Portfolio
TRC Test
2.45
TRC is Total Resource Cost Test where a score greater than 1 equals benefits are greater than costs for the
entire utility system.
TRC for FY 07/08 Programs was 3.05, compared to TRC for FY 08/09 of 2.45. This means that more
efficiency is being completed at levels increasingly above the "low hanging fruit." Advocates such as
the National Resource Defense Council (NRDC) continually push for utilities to perform all efficiency
measures that exceed 1.0 in the TRC calculation.
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Appendix B: Quantitative Electric Efficiency Program Achievements
This appendix includes a variety of specific program results, including customers assisted,
electricity saved, and greenhouse gas reductions from this work. The electricity saving results are
reported to the California Energy Commission (CEC) by total program category. That information is
listed below. In addition, the department maintains a listing of individual measures delivered to
residential customers. In the table below, note that some water saving programs (the COM-
SCVWD programs referenced below) do save electricity and natural gas, primarily through a
reduction in hot water heating. Staff reports on the electricity savings achieved through the water
programs to the CEC.
Net
Gross Net Net Lifecycle
Annual Net Annual Lifecycle GHG
Energy Demand Energy Energy Reduc- Total
Savings Savings Savings Savings tions Utility Resourc
(kWh) (kW) (kWh) (kWh) (Tons) ($/kWh) e ($/kWh)
•o.
9 , 1,825 4,667,71
COM-Com. Advantage 2,336,667
COM- Right Lights 1,845,733 200 1,476,586 11,380,475
RES- Online Audit
RES- REAP Low Inc 669,634 206 535,707 6,688,353 3,575 .06 .06
RES- Smart Energy 979,941 308 783,953 11,399,495 6,188 .04 .04
GEN- Gen T&D
COM-SCVWD 2,664 883 2,131 21,312 11 .27
,425,595 27,90& .05 .06
229 1,869,333 21,935,960
11,906
6,227
.03
.07
.05
.08
1.64
Note: Renewable energy programs, such as PV Partners or the Solar Water Heating
Program, are not reported to the CEC as energy efficiency measures. However, it
should be noted that the installation of solar systems does reduce theconsumption
of commodities, both electricity and natural gas, purchased from the utility.
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Appendix C: Historical Expenditures on DSM and Renewable Energy
Utility and Major Function
Historical costs by utility and program function are listed below. The information i
Fiscal Year 2003-2004 through Fiscal Year 2008-2009 for comparison purposes.
Historical Costs by Utility and Cost Center
Electric PBC
Admin
Efficiency - Elec
DSM
Electric
Renewable
Electric
Customer Accts
Electric R&D
Electric Low
Income
Gas PBC Admin
Efficiency - Gas
DSM
Gas Customer
Accts
Gas R&D
Gas Low
Income
Water PBC
Admin
Water Efficiency
Water Customer
Accts
2003-2004
$ 128,020
$ 1,199,220
$ 205,002
$ 103,983
$ 78,682
1,575
$ 113,548
Fiscal Year
2005-
2004-2005 2006
$ 129,288
$1,094,768
$ 258,025
$ 61,297
$ 8,526
$ 1,993
$ 196
$ 164,141
$ 792,852
$1,504,726
$ 6,170
$ 7,774
Programs By
s given from
2006-2007 2007-2008 2008-2009
$ 81,470 $ 140,215 $ 384,312
$ 728,930 $1,049,958 $1,566,757
$1,126,506 $1,219,982 $1,210,982
$ 38,726 $ 17,832 $ 290,110
$ 19,145 $ 4,354 $ 8,543
$ - $ 132,117 $ 148,169
$ 4,449 $ 41,179 $ 86,914
$ 190,934 $ 41,603 $ 119,135 $ 125,052
$ 6,866 $
$ - $
$ - $
13,596 $ 5,411 $ 12,359 $ 3,846
$ 4,763 $ 12,380 $ 9,769
$ $ 50,549 $ 56,256
$ 54,075 $ 30,974 $ 61,592 $ 66,802 $ 211,460
$ 6,214 $ 5,989 $ 7,256 $ 7,865 $ 17,509
$ 168,189
$ 52,131
$ 215,489
$ 53,841
$ 13,626
$ 83,597
$ 331,315
$ 57,521
Total
$1,027,445.90
$6,432,486.38
$5,525,222.86
$ 518,117.27
$ 127,022.94
$ 450,466.88
$ 186,444.39
$ 805,760.60
$ 95,919.47
$ 40,537.72
$ 190,401.64
$ 756,218.02
$ 102,353.65
Total $ 1,897,187 $1,795,585 $2,600,737 $2,437,163 $3,091,314 $4,436,413 $ 16,258,398
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An overall summary of program expenditures in a functional breakout, combining all three utilities, is shown
below in both a graphical and tabular format.
DSM Proaram Exoenditures
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
■ R&D 0 Efficiency ❑ Renewable Energy ❑ Low Income ❑ Admin ■ Key Accts
500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000
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Appendix D: Demand Side Program Descriptions
Customer
Class
Residential Electric,
Water, and Gas
Program Name
Smart Energy
program
Admini-
strator
UMS Staff
Description
Rebate customers for purchasing and installing
energy efficient appliances, insulation, furnaces, pool
pumps, water heaters, and other items.
Electric
Refrigerator
Recycling
JACO
Rebate customers $35 for an old working refrigerator.
Unit recycled.
Residential Electric,
Gas, Water
Residential New
Construction Rebate
UMS Staff
Rebate customers who exceed City's Green Building
Ordinance up to $900.
Residential Electric
and Gas
Low Income
Residential Energy
Assistance Program
(REAP)
Synergy
An energy specialist visits residents' homes and
performs a free energy audit. Recommendations are
given for energy saving measures. Replacements
and repairs are made to insulation, weather stripping,
lighting, refrigerators, and furnaces (if needed).
Residential Electric,
Gas, and Water
Residential Home
Energy Audit
Aclara
On -Line energy audit of household energy and water
use.
Residential Electric,
Gas, and Water
Green@Home
Acterra
Acterra provides free in -home energy audits and
electric meter information (blue line monitors).
Residential Electric,
Gas, and Water
Training and
workshops
Various
Contractors
and Staff
Workshops on energy and water conservation issues
for the public.
Residential Water
Water Conservation
Programs
SCVWD
Work with Santa Clara Valley Water District to ensure
customers receive audits and rebates for water
conservation projects.
Small Business
Electric and Gas
Right Lights+
Ecology
Action
Contractor performs energy audit on facility,
recommends changes, assists customer in making
upgrades, and completes paperwork for rebate.
Business Electric
and Gas
Commercial
Advantage Program
(CAP)
UMS Staff
Rebates on installation of the following energy
efficient equipment types: lighting, HVAC, chillers,
boilers, food service, refrigeration, office equipment,
appliance, & custom saving programs.
Business Electric,
Gas and Water
Business New
Construction
Rebates
UMS Staff
Rebates for new construction exceeding City and
state energy requirements.
Business Electric
Data Center
Efficiency Program
UMS Staff
Rebates for server virtualization and other data center
,: .. .
efficiency measures.
Business Electric
and Gas
Commercial &
Industrial Energy
Efficiency Program
Enovity
Commissioning and installation assistance for large
businesses installing efficiency measures.
Business Electric
and Gas
Efficiency Programs
for Commercial
Kitchens
National
Resource
Mgmt
Direct installation assistance for efficiency measures
in commercial kitchens.
Business Water
Water Conservation
Programs
SCVWD
Work with Santa Clara Valley Water District to ensure
customers receive audits and rebates for water
conservation projects.
Business Electric,
Gas, and Water
Training
Various training and workshops for business
customers.
Business Electric,
Gas, and Water
Large Customer
Facility Manager
Meetings
UMS Staff &
Others
Training on a variety of efficiency measures, from
chillers to LEED certification on buildings.
Business Electric,
Gas, and Water
MeterLinks
Automated
Energy
On -Line access to metered utility usage for large
customers.
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RENEWABLE PROGRAMS at City of Palo Alto Utilities
All customers
Electric
PV Partners
UMS Staff
Rebates for installation of solar electric (PV)
systems.
All Customers Gas
Solar Water
Heating
UMS Staff
with Center
for
Sustainable
Energy
Rebates for installation of solar water heating
systems.
All Customers
Electric and Gas
Ground Source
Heat Pump
UMS Staff
Help customers implement ground source heat
pump systems.
All Customers
Electric
PaloAltoGreen
3Degrees
Supports wind and solar generation by purchasing
renewable energy credits up to 100% of a
customer's energy usage.
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