HomeMy WebLinkAboutStaff Report 169-10,,; ..
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: CITY MANAGER
DATE: MARCH 15, 2010 CMR: 169.10
REPORT TYPE: CONSENT
SUBJECT: Adoption of a Resolution Authorizing the Association of Bay Area
Governments (ABAG) to Accept an American Recovery and
Reinvestment Act Residential Building Retrofit Program Grant
Award on Behalf of the City of Palo Alto and to Enter Into All
Necessary and Related Contracts, Agreements and Amendments
RECOMMENDATION
Staff requests that the Council:
1) Adopt the Resolution In Attachment A authorizing Association of Bay Afea
Governments (ABA G) to accept an American Recovery and Reinvestment Act
Residential Building Retrofit Program grant award on Behalf of the City of Palo Alto
and to enter into all necessary contracts, agreements, and amendments on its behalf to
implement and carry out the projects;
2) Recognize Santa Clara County (SCC) as the lead local implementer for the projects
described in Attachment B for all of the local governments in Santa Clara County;
and
3) Recognize ABAG as the fiscal agent, which will disburse the funds to Santa Clara
County to implement and carry out the projects.
EXECUTIVE SUMMARY
ABAG has been awarded a grant from the California Energy Commission's (CEC) State Energy
Program (SEP) for $10.75 million to fund their proposed "Retrofit Bay Area" program. Santa
Clara County (SCC) passed a resolution on March 2nd to accept this grant funding as the lead
local implementer in the ABAG project. The action requested of Council does not directly grant
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the city of Palo Alto any funds. Your action however is a prerequisite to any potential funding.
The exact details of the program are not yet available, but the projects will focus on education,
outreach and coordination of other existing related programs. There are no costs to the City of
Palo Alto to participate in this ABAG program or in SCC's effort, and there could potentially be
funds available for which the City of Palo Alto Utilities Department (CPAU) could apply to
develop or enhance current residential retrofit programs. In order to participate in this program,
Council needs to adopt the attached resolution. If the resolution is not adopted, the City will be
unable to participate in any County projects funded by ARRA for this program.
BACKGROUND
The CEC's funded the SEP with $95 million to provide an unprecedented opportunity to develop
and implement a regional community-scale building retrofit program. ABAG, in partnership
with the eight counties and a total of 104 local governments in the San Francisco Bay Area, is
working to present an innovative proposal, "Retrofit Bay Area ", in order to establish the
infrastructure for a market-driven regional residential retrofit program. This self-sustaining
program will stimulate the economy and create jobs while assisting in the transformation of
energy markets in California. Designed for scalability and transferability, this program will
create a model that can be replicated statewide and nationally.
ABAG has been awarded a $10.75 million grant to fund "Retrofit Bay Area ", a region-wide
energy efficiency program with goals to retrofit 17,000 homes (single and multifamily) to
achieve reduction in home energy consumption, while creating home energy retrofit jobs. The
grant includes regional program development, local program development and implementation,
evaluation, and measurement, as well as implementation, administration and reporting of the
installation effort.
ABAG and its grant Steering Committee have agreed to a population-based allocation for each
county-specific program. SCC's budget allocation is $1.9 million. Funds will be released by
ABAG to SCC, as the County is the program implementer for its local jurisdictions. Attachment
B provides a summary description of the "Retrofit Bay Area" program and SCC's role. The
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grant will fund County staffing to implement the program. The CEC and ABAG are working on
their grant agreement, which includes a project description, work statement tasks and milestones,
budget and schedule. After completion of their agreement, ABAG will work with the counties to
form agreements for local implementation funding to be distributed.
The "Retrofit Bay Area" program encompasses the outreach, education and marketing related to
other existing efficiency programs. It compliments another residential effort which the Council
approved on December 14,2009, the CaliforniaFIRST Program, which has also been funded by
the SEP (CMR 449:09). The CaliforniaFIRST Program is a financing program being developed
by California Communities to allow owners of property in participating cities and counties to
finance renewable energy, energy efficiency and water efficiency improvements on their
property. If a property owner chooses to participate, the improvements will be financed by the
issuance of bonds by California Communities. California Communities will levy "contractual
assessments" on the owner's property to repay the portion of the bonds issued to finance the
improvements on that property. "Retrofit Bay Area" will also complement the City of Palo
Alto's Green Building Program by upgrading existing housing stock of participating residents.
RESOURCE IMPACT
If approved, minor staff time may be required to apply for funds, or may be required for
marketing and coordination of county programs, although these efforts are in line with current
staff goals, activities and programs. Resources from the City side will be kept relatively low
because ABAG will accept the grant award from the CEC's SEP funding related to the "Retrofit
Bay Area" Program. SCC will be the lead local implementer for the projects described in
Attachment B for all of the local governments in SCC. ABAG, as fiscal agent, will disburse the
grant funds to SCC to implement and carry out the projects described in Attachment B.
POLICY IMPLICATIONS
Implementing this financing mechanism will reinforce the City of Palo Alto's policies and goals
to encourage energy efficiency installations and to assist customers in their attempts to use
electricity more effectively. Goals being supported include the City Council Priority,
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"Environmental Protection," the Ten-Year Energy Efficiency Program, and the Climate
Protection Plan.
ENVIRONMENTAL REVIEW
With this action, the council will find that the authorization for ABAG to accept an American
Recovery and reinvestment Act grant is not a "project", because it is not an activity which may
cause either a direct physical change in the environment or reasonably foreseeable indirect
physical change in the environment. Santa Clara County will be the lead agency for energy
efficiency projects it undertakes. If implemented by the City of Palo Alto, the energy efficiency
projects described in Exhibit A will be categorically exempt from CEQA pursuant to California
Code of Regulations, Title 14, sections 15301 (repairs and minor alterations to existing
facilities), 15302 (replacement or reconstruction of existing structures and facilities), 15306
(information collection), 15308 (actions to protect the environment), 15309 (inspections), and
15322 (training programs) because the projects would develop standards for resource conserving
and energy saving retrofits of existing structures in conformance with existing building codes;
train homeowners, contractors and other building professionals; encourage participation in green
retrofits program; provide rebates for tested and certified retrofit projects; and monitor and
evaluate environmental performance of projects.
ATTACHMENTS
A. Resolution of the Council of the City of Palo Alto Authorizing the Association of Bay
Area Governments (ABAG) to Accept an American Recovery and Reinvestment Act
Residential Building Retrofit Program Grant Award on Behalf of the City of Palo
Alto and to Enter Into All necessary and Related contracts, Agreements and
Amendments;
B. Exhibit A. "Retrofit Bay Area" Comprehensive Residential Building Retrofit
Program. Summary of grant proposal slj.bmitted by ABAG to the California Energy
Commission on December 21,2009
PREPARED BY:
Manager, Utilities Marketing Services
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APPROVED BY:
CITY MANAGER APPROVAL:
CMR: 169:10
~~-:iY::-.
DEBRA VAN DUYNHOVEN
Assistant Director, Utilities Customer
Support Services
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Attachment A NOT YET APPROVED
Resolution No. ---
Resolution of the Council of the City of Palo Alto Authorizing the
Association of Bay Area Governments (ABAG) to Accept an
American Recovery and Reinvestment Act Residential Building
Retrofit Program Grant Award on Behalf of the City of Palo Alto
and to Enter Into All Necessary and Related Contracts, Agreements
and Amendments
WHEREAS, the City of Palo Alto ("City") recognizes that it is in the interest of the
local, regional, state, and federal agencies to stimulate the economy; create and retain jobs;
reduce fossil fuel emissions; and reduce total energy usage and improve energy efficiency; and
WHEREAS, the City has committed to an ongoing, coordinated effort to reduce the
emissions that cause global warming, improve air quality, reduce waste, cut energy use and save
money. The City is committed to reducing community-wide greenhouse gas emissions by 5%
below its 2005 baseline by 2012 and 15% below the 2005 baseline by 2020; and
WHEREAS, State Energy Program (SEP) funds are available through the California
Energy Commission's SEP Funding Opportunities for grants to eligible local governments for
cost-effective energy efficiency projects; and
WHEREAS, the SEP allows for public agencies or non-profit entities to apply for
funds on behalf of eligible local governments; and
WHEREAS, the City is eligible for SEP funding under the California Energy
Commission's SEP Program; and
WHEREAS, the City has collaborated with the Association of Bay Area
Governments (ABAG) to submit a regional application to implement the energy efficiency
projects described in Exhibit A for the purpose of qualifying for SEP funds from the California
Energy Commission; and
WHEREAS, the City has considered the application of the California Environmental
Quality Act (CEQA) to the approval of the energy efficiency projects described in Exhibit A;
and
NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE,
as follows:
SECTION 1. That in compliance with the California Environmental Quality Act
(CEQA), the City finds that the Council's authorization for ABAG to accept a American
Recovery and Reinvestment Act Retrofit Bay Area Program grant is not a "project", because it is
not an activity which may cause either a direct physical change in the environment or a
reasonably foreseeable indirect physical change in the environment. Santa Clara County will be
the lead agency for energy efficiency projects it undertakes. If implemented by the City of Palo
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100308 syn 6051116
NOT YET APPROVED
Alto, the energy efficiency projects described in Exhibit A will be categorically exempt from
CEQA pursuant to California Code of Regulations, Title 14, sections 15301 (repairs and minor
alterations to existing facilities), 15302 (replacement or reconstruction of existing structures and
facilities), 15306 (information collection), 15308 (actions to protect the environment), 15309
(inspections), and 15322 (training programs) because the projects would develop standards for
resource conserving and energy saving retrofits of existing structures in conformance with
existing· building codes; train homeowners, contractors and other building professionals;
encourage participation in the green retrofit program; provide rebates for tested and certified
retrofit projects; and monitor and evaluate environmental performance of projects.
SECTION 2. The City authorizes ABAG to accept the grant award, on its behalf,
from the California Energy Commission's SEP Funding related to the Retrofit Bay Area
Program.
SECTION 3. The City recognizes the County of Santa Clara as the lead local
implementer for the projects described in Exhibit A for all of the local governments in Santa
Clara County.
SECTION 4. ABAG, as fiscal agent, will disburse the grant funds to Santa Clara
County to implement and carry out the projects described in Exhibit A.
SECTION 5. This resolution shall take effect immediately upon its adoption. The
City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the
Secretary of California Communities.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Deputy City Attorney City Manager
Director of Utilities
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Attachment B
EXHIBIT A
Retrofit Bay Area
Comprehensive Residential Building Retrofit Program
Summary of grant proposal submitted by ABAG to the California Energy Commission on
December 21, 2009
Description of Proposed Program
The Association of Bay Area Governments (ABAG) is collaborating with eight Bay Area
counties to establish a comprehensive residential single-family and multifamily building retrofit
program that leverages regional cooperation and funding while enabling autonomy at the local.
level. The proposed ABAG program aligns with local, regional and national goals of promoting
economic vitality through an increase in green jobs, reducing U.S. oil dependency through
increases in energy efficiency and deployment of renewable energy technologies, and reducing
greenhouse gas emissions.
On behalf of Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara, Solano and
Sonoma Counties, ABAG submitted a proposal to the California Energy Commission's State
Energy Program (SEP) to receive $10.8 million in American Recovery and Reinvestment Act
(ARRA) grant funds administered by the U.S. Department of Energy. This grant program,
known informally as SEP 2 to distinguish it from three other elements of California's SEP
program, runs from February 11,2010 to March 31, 2012. The ARRAISEP 2 grant funds will be
used by ABAG program participants to carry out local and Bay Area-wide consumer outreach
and education campaigns and workforce development activities that will accelerate demand for
home energy retrofits and expand the regional building industry's capacity to delivery high
quality, cost-effective retrofit services.
To achieve these goals, Retrofit Bay Area has identified a set of three core program objectives:
1. Provide Property Assessed Clean Energy (PACE) financing to address the high upfront
cost of retrofits, which enables homeowners to finance energy efficiency retrofits and
renewable energy improvements through assessments paid via their property taxes.
2. Demonstrate more effective marketing and outreach methods to inform and motivate
property owner participation.
3. Streamline participant, contractor, and administration processes to reduce the high
transaction costs and build a quality "green" workforce.
The ABAG program thereby will complement existing and planned local retrofit activities.
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Program Participants and Roles
Participant Role
Association of Bay Area Governments Fiscal agent and contract administrator
Alameda County (Stop Waste. Org) and Regional tasks and local retrofit program
Sonoma County (Sonoma County implementation
Transportation Authority)
Contra Costa, Marin, San Francisco, San Local retrofit program implementation
Mateo, Santa Clara and Solano Counties
Bevilacqua Knight, Inc., Build It Green and Regional and local implementation assistance,
California Building Performance Contractors quality assurance and reporting
Association
Santa Clara County's Role
Santa Clara County (County or SCC) has represented the interests of the County and its cities in
working with ABAG to develop a regional energy program and is working with the cities to
develop a countywide element that will become the SCC Residential Retrofit Program
(SCCRRP). Once grant funding is received, SCC's portion is more than $1,950,000 for the
SCCRRP to implement local efforts to promote energy audits and retrofits for the residential
sector in all the cities and unincorporated areas of the County.
SCC is providing a grant process for nonprofits, businesses, housing agencies, utilities and
consulting firms to provide energy audits to the residential community. The SCCRRP will
consist of a suite of environmental programs and information, including PACE financing options
that will be uniformly packaged, marketed and presented to County constituents. The energy
audits are expected to stimulate interest in comprehensive home retrofits such as added
insulation, weatherization, heating, ventilation and air conditioning (HV AC) upgrades, and
energy efficient appliances, resulting in significant reductions in energy and water consumption.
The nearly $2 million that will be available for the SCCRRP will fund two County staff positions
and various programs. ABAG is seeking to facilitate 17,000 retrofits in the Bay Area during the
grant cycle, with an average of20% energy reduction. Based on the County having 26% of the
population of the eight participating counties, the SCCRRP will aim for 4,359 retrofits. It is
projected that this work will result in 446 new jobs, $1.7 million saved in energy costs for
homeowners, 100 billion reduction of BTU, and $43.8 million spent in the County.
The SCCRRP will not change the permitting or building inspection processes within the County,
and will seek to inform and educate residents on steps that they can take to reduce their energy
consumption and water usage. Residents who participate in the program and have energy audits
performed on their homes will be encouraged to implement the steps recommended by the
energy audit and upgrade their home to be more energy efficient and to consume less water.
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