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Home My WebLink About0356.0931 I I , - ~ statJe'JOII ____ 1'""'\_1_5_) __ _ June 24. 1993 THE HONORABLE CITY COUNcrL Palo Alto, California ~doptiQn of policy statement fQL Model Energy Efficiency Program Members of the Council: Report in Brief This report forwards to Council a Utilities Advisory Commission recommendation regarding adoption of the attached policy statement from the California Municipal Utilities Association (CHUA) tor a Model Ener~i Efficiency Program. Palo Alto's staff assisted the CHUA in the efforts to produce a guide book and policy statement for utilities interested in illlple1ttenting Demand-Side Manage'tti.l!nt (DSH) or Efficiency Programs. Adoption of this policy statement endorses Palo Alto I s current energy efficient programs and reaffir.ws Palo Alto's commitment to Integrated Resource Pl~nning. The City of Palo Al to Utilities Advisory commission voted 5 to Cl on May 5 to recommend that the Council adopt the attached policy statement tor a Model Energy Efficiency Proqram. CKR:JS':93 Staff recommends that the City Council adopt the attached Policy stat~!tent for a .Mod~l Energy Efficien.cy Program. Respectfully submitted, C;-'" ,:; "I " ~I,. "l 1 , _'" TOM KABASHI Engineering ~anager~ Re~Qu~ce Planning )-,'_ r_'1'j. l-_,.. '1:0'wMW3. !(J<~K rnteri~ C~~~or of Utilities i 1:.-1/ ~~ir~ pi ty Manager / V I; Attachments: ~olicy Stat~m~nt tor a Model Energy £fficie:mcy prO<ir-am Model £net'YY Effie ie!)cy ProgI"am cc: Utilities Advisory commission eXlU ) 56,93 • ..... .... .~j,-.i~70.b .. ·~~.ices Engi"ff_""l.."g C"lpt>rn.~Cl""b 8e;(JUIn'. r'.13!'J'.j'g - April 29, 1993 UTILITIES AD'I':ISO?'Y COMMISSIOr: Palo Alto, California ~ityof PaIoAlto LJ.-;,' :;.,,-:;. [.:"7:;:.'-::!i.;..:nr Adept i on ::;) f P:jl icy S ta tern€!""lt ..... f.a t" Mo9..~.J-,E>Jn""e£r-"g"v,--... EOJf,-fui"C'"i .. e"n,"c"",v Program Members of the utilities Advisory COItffi'.ission: Report in S:r ,l,. .. € f This repo!""t re.co:T".7ends adoption cf the attached policy statement from the California Municipal utilities l.ssae iation (CMUA) for a Model Energy Efficiency Program. Palo .a_Ito's staff assisted the CMUA in the efforts to produce a guide bo~k and pol icy state:ment for util ities interested in implementing DerTtand-Side Manage.=.ent (DSM) or Efficiency Programs. Adoption of this policy statement endorses Palo Alto's current energy efficient programs and reaffirms Palo Alto's commitment to Integ~ated ResQurce Planning. BdCKcrour:d The California Municipal Utilities Associatien (CMIJA) Energy Efficier:cy Ccrn.rn.i ttee (EEC) ..... '3S fermed to assist :member ut i1 i ties in developing and implementing Energy Efficiency Programs via informa~ion sharing and joint expertise. The EEe quickly realized the nee.d for a document that ... rol.lld assist CHUA nernbe.::-s in assess ing, planning, devalopir.g, i:::plerrLentir.g, c.nd eva luat ing €r-.ergy eff ici~ncy prog::-ams. S"Caff frcn Palo Alto actively participated in all the: stages ~eadinq tc t!-.:e prod\!ct':'=n of the C:ocu!:1ent. L'"l J~ly cf ':<'9502, t!:e California Energy CO~,","'ilissic·n passe:d a res·::lt:t:i.cn reccgr.izing and cort"l.Tnending eMU]" "for its lea::l.er.&hip in redLlcing cc-sts and pro'liding a higher quality of er:vironrne~t for all Californians by co~pleting the ~odel Plan fer E~ergy Efficiency". 7. a. ">q'; :~~:(~~ -- "-,',, ~:"' ".'- .-~L-.. ···.·· J.... _ , , The attached policy 5tate~e~t fc~ a Model E~e~gy Efficiency Prcgra:n e"dQr:::es a r,u!:'.t,er c~ resc';rce .F:'a.'i:::l"',g t:"='licies. Palo Alto's Electric Ctility is already i~ple~enti~g all ct these policies as a r:.E:a,.s cf r:eeting custC!:1er el'?'ctric energy needs, i~ B lo~ cost a~d e~viro~~entally acceptable manner. thr'.i~-';h .or. I;Jtegrated Resource Plar.nir.s {IRF) process. Palo Alto's endorse~e~~ cf the attached policy state~ent ' .. 'ill - • enco'..lI'age c,cher utilitie'5 to explore ti:e benefits of adopting an !RP process~ • r.otify the C~lifcrnia Energy Cc~..rnissicr: trlat Palo )..1 to uses and supports the principles c f lr.tegrated Resource Planning, and • affirm th.:t Falo Alto abides hi the National Energy Policy Act of 1992 · ... hich requires that all custc;.<:1ers of tr.e -""estern Area P01,,[er Administration t -.¥"estern) nlLl.st practice integrate::i resource plar.ning by the fa 11 of 1994 as a condition of re=elving a power allocation. staff reco~"TLends tr.e Utilities Advisory CCm.'ilission recom.:mend that the City Co~ncil adept the attached Policy statement for a Model Energy Efficien~y P~ogra~4 Respectful~~' s~t:itted. /. )-' (j .&4·/~~/C TOM KAEAT Po;.;er Engir.cer r~~t'._ -\--T:·,L:O~i--- TOM FiAEASE! Engineering Manag~r, Re~-?u-;~,.~, ,Plarling .;:. -. -, :-<.0 <' EDw;' .. RD J. MRI ZEF. Interi~ Directc~ of ctilities poliCj State~€nt for a Model E~e~gi E!ficie~c~ Frogrd~ - - li:,_ ......- _i_~~'1V>r.":Io·'''""" POLICY STATEMENT FOR A MODEl. ENERGY Ef'F1C1ESCY PROGRA,'>I ATIACHy.E. ..... -r Al A chief polit')' objective of each comumer--o'Wned electric.: utility shouid be to ensure that its resources are used \~I:is~ly. Tht: utili!)!'s consumcr·o-wnCT5 are best ~erved and ~ill be affcrded the lowest overall C05t of energy. including societal costs, if Energy Efficiency is effectively practiced by the utiiitj' and its consumer·ov.ners. The contributors to the ~bdeJ Plan for Er.erg)' Efficiency belie\;e lni:it the Pla..'1 ret1ec!S the philosophy and provides the basic tools that can ~ used by coflSumef-{}'.vned utilities. to implement that philosophy. Because we recognize that Energy Efficiency programs are a means to: • displace some future supply resources ilnd reduce CQ5,l~. • provide a competitive value to our ClJstomer--o'.vners, • address growIng environmenral concems., we endorse a policy of equivalent treatment of DS~1 and supply resources in order to analyze, commit to and acquire the mix of supp)y and demarl.d-side resources that best aC'hieve our utilities' stated goals. We subscribe to a number of preCepL'i-whkh support this policy. They include: • Utilities should recognize the economic and environmental imperative of Energy Efficiency for constimer-ov,.ned suppliers of electricity throughout CaliforrJa and the nation. • Utilities ~hould employ Integrated Resource Planning in order to optimize the balance of suppTy and demand-side resources. • Utilities should implemenl and continue to support all Energy Efficiency programs found to be cost·effective and appropriate, • Utiiities 5hou1d provide leadership in Energy Efficiency through electric utility industry cooperation and support, innovation and by adop:ing an organizati9nal philo:;ophy that promotes Energy Efficiency. • Utilities should provide staffing and funding necessary to achie .... e those program goals that are determined to be cost-effective and appropriate. a Each utility should embrace and ~tr~ .... e to lmplement the Model Programs outlined belov..r: L .. t t ! j n .. " I . ,'-. 1 i I - ATTACHMENT A2 The following programs and practices are among those that utilities. should consider for adopticJD and implementation whenever they apply In a utility's drcum.~tances a.nd Jntegrated Resource Plan: • Integrated Resource PlaTming that is based on !he Tota! ReSOtl.fCe Cost Test or other generally accepted cost effectiveness test defined in the Model Plan for Energy Efficiency. • Integrated Resource Planning that include.; environUlcntal externalities a.<;soc1ated ""ith power s'..lpply resources or Energ:.-Efficiency Program!;. • Integrated Resource Plamling that includes assessment of relevant &ocietal benefits of Energy Efficiency Prograrm. and power .'ioupply resources. • Rate structures and incentive rales War prCm(lle Energy Efficiency. • Ma"{imi7.ation of imernal e-ffi.cienr.y 0: uti lit)' operations in areas of generation and tran.<;.mission. distribution system loss reduction. and operations of utility facilitie~ and buildings. • Customer outreach, public educa!;OIl iiIld marketing programs to promote Energy Efficiency. • Technical A.ssista....'"lce programs to pro .. ~de Energy Efficiency-rcialed scf\oices to customers, su.ch as conservation audits, weatherization, new technology introduction. and quality of sef\o'ke aS5is.~ance. • Designation of a specific iIldividual to s.erve as Energy Efficiency Coordinator .... ith the responsibility to inlegrate energy efticienC)' into the staffing and resource bu dgets of the utility; also, to a."sure coordination of program planning, evruuation. implementation, marketing, load monitoring ~ well ao;; working wLth trade allies, obtaining industry cooperation, gaining s.upport from other municipal entities, and providing o~eran leader~h1p and g't.lidanCe to the utility's En~rgy Efficiency efforts. • An evaluation sy~tem to !1le&-r;ure and monitnr rc!>ulLs and to provide a feedback mechanism that allows validation of results and facilitates necessary adjustments. 2 L i ! , I i f I ~ . \": .~ - \:-. , - RESOLUTION NO. RESOLUTION OF THE co:.:.n-.":rL OF THE CI'I'Y OF p~tUrO AI. T0 A-T'rO:r:'TING THE ;'OLICY STAT~MENT FOP. A MODE(J EFFICIENCY PROCR.b..."-l ~riEREAS, the City of Palo Alto rr~nages it3 electric ULllity operations with the goal of providing an 06.':Jequate, reliable, and safe supply af electric power to mee~ its customers' needs in an economi-:al, efficient. and environ .. rtientally sound ma:)ner; and WtiEREAS. the California Municipal Utilities Association {"OiUA~) has drafted and issued a poli cy state!';lent concerning a model en8rgy effic:i.ency program for adoption by its members wI,.,;,' share this goal; and W"rlEREAS, the City of Palo Alto is a member of (.'1"1IJA and has assisted in the production of the CMUA policy statt8rr.ent; and WHERE..~, CMUA has been recog::lized and co.'W!'Lended by the California Energy COmrl'\issio:l for its leadership in reducing energy costs and providing a higher quality of environment for all Californians by completjng and issuing the Model Plan for Energr Efficiency for ~doprio~ by its ~e~~Ers, NOW, THSREF'::;;"S~ the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby adopts the attached lIpolicy Statement for a Model Energy Efficiency pro9r~." ~hicb is authored and promoted by the California MUnicipal Utilities Association, of which the City of Palo Alto is a mernber~ SECT . .:rON __ ~. The Council finds "3.nd determines that the act:ion hereby adopted and approved i.s not a proj ect undE'r the Californi& Ec.viroru:',~ntal Qual ity J.~ct. AYES: NOES: ABSENT: ABSTEt."'TIONS: ATTEST: APPRc\r-';::D: City Clerk 1 L APPROVED AS TO FOR.."I1: Ci ty ~.anager Senior A8St. City Attorn€y Director of Finance Directci-roE UU,lities 2 9J.0504 ,yo 0010316 -""