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HomeMy WebLinkAbout12 EECBG PROGRAM 06-16-09Agenda Item 12 • Reviewed: r~_. AGENDA REPORT City Manager Finance Director MEETING DATE: JUNE 16, 2009 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: TIM D. BEREFT, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) SUMMARY The Energy Efficiency and Conservation Block Grant (EECBG) Program is a new program created in late 2007 and funded for the first time through the American Recovery and Reinvestment Act (ARRA). The program provides funding for local governments, states, territories and Indian tribes, to support projects that reduce energy use, decrease fossil fuel emissions, and improve energy efficiency in all sectors, including transportation. RECOMMENDATION It is recommended that the City Council receive and file FISCAL IMPACT The City of Tustin has been allocated $677,300.00 under the EECBG program as a formula allocation. These funds must be obligated/committed within 18 months of the effective date of the award and expended within 36 months of the effective date of the award. A maximum of $250,000 of the allocation can be utilized for the development of an Energy Efficiency and Conservation Strategy (a required component for full funding). BACKGROUND American Recovery and Reinvestment Act (ARRA) The EECBG Program is one of the approximately 70 programs funded under the American Recovery and Reinvestment Act (ARRA), "Stimulus Bill", and signed into law by President Obama on February 17, 2009, with an appropriation of $3.2 billion. The EECBG was previously included in the Federal Energy Act of 2007, but was not funded. The stated purpose of the ARRA is: • To preserve and create jobs and promote economic recovery. • To assist those most impacted by the recession. • To provide investments needed to increase economic efficiency by spurring technological advances in science and health. • To invest in transportation, environmental protection and other infrastructure that will provide long-term economic benefits. • To stabilize state and local government budgets, in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases. EECBG Program June 16, 2009 Page 2 The EECBG Program is administered by the Office of Energy Efficiency and Renewable Energy of the U.S. Department of Energy (DOE). Discussion On March 26, 2009 the DOE issued a funding opportunity announcement detailing the application requirements for the formula grant. As a city with a population over 35,000, Tustin is allocated $677,300 in direct funding from the Federal Government according to a formula based on residential and daytime (commuter) population number. The deadline to submit the grant is June 25, 2009. With approval of the initial application, Tustin will be eligible to receive up to $250,000 for development of an Energy Efficiency and Conservation Strategy (EEGs). An approved EECS is required to receive full grant funding and must be submitted within 120 days of receiving the first $250,000. The Public Works Department is coordinating with the Community Development Department and intends to retain a consultant to assist in developing an effective energy strategy that will maximize the use of the present and future available funds. This proposed strategy and associated projects will be presented to the Council for approval prior to submittal to DOE. The DOE encourages program applicants to pursue activities that result in maximum energy efficiency improvements, economic benefits and total energy use reduction. There is a broad list of eligible activities under the EECBG Program. However, many of these eligible activities will require federal environmental review and/or have limitations on the amount of funding that could be available from the EECBG. In addition, the grant application requires detailed information, including budget justification, for each activity that the applicant plans to undertake using the allocated EECBG funds. Finally, the EECBG funds need to be obligated within 18 months and expended within 36 months from the time of the application. Attached is a list of eligible activities for EECBG funds. ,/,~ CSC ~ Tim D. Serlet ~ s hurchill Director of Public Works/City Engineer I d ervices Manager Attachment: Recovery Act -Energy Efficiency and Conservation Block Grants -Eligible Activities Energy Efficiency & Conservation Block Grant.docx Recovery Act -Energy Efficiency and Conservation Block Grants (EECBG) -Eligible Activities 1. Development of an Energv Efficiency and Conservation Strategy: Entities may use a grant received under this part to develop and/or implement a strategy for energy efficiency and conservation and to carry out activities to achieve the purposes of the program. All entities receiving direct formula grants from the DOE are required to submit a proposed strategy for approval. 2. Technical Consultant Services: Entities may retain technical consultant services to assist the eligible entity in the development of such a strategy, including formulation of energy efficiency, energy conservation, and energy usage goals; identification of strategies to achieve those goals through efforts to increase energy efficiency, reduce fossil fuel emissions or reduce energy consumption through investments or by encouraging behavioral changes. Entities may develop methods to measure progress in achieving the goals. Entities may develop and ..publish annual reports to the population served by the eligible entity describing the strategies and goals and the progress made in achieving them during the preceding calendar year. 3. Residential and Commercial Building Energv Audits: Entities may support the conduct of residential and commercial building energy audits. . 4. Financial Incentive Programs: Entities may establish financial incentive programs and mechanisms for energy efficiency improvements such as energy saving performance contracting, on-bill financing, and revolving loan funds. 5. Energv Efficiency Retrofits: Grants may be made to nonprofit organizations and governmental agencies for the purpose of retrofitting existing facilities to improve energy efficiency. 6. Energv Efficiency and Conservation Programs for Buildings and Facilities: Entities may develop and implement energy efficiency and conservation programs for buildings and facilities within the jurisdiction of the entity. The range of activities includes the design and operation of the programs; the identification of the most effective methods for achieving maximum participation and efficiency rates; public education; measurement and verification protocols; and identification of energy efficient technologies. 7. Development and Implementation of Transportation Programs: Entities may develop and implement programs to conserve energy used in transportation, including but not limited to: • Employee flex time programs; • Promoting use of satellite work centers; • Development and promotion of zoning guidelines or requirements that promote energy efficient development; • Development of infrastructure such as bike lanes and pathways and pedestrian walkways; • Synchronization of traffic signals; • State/locals/regional integrated planning activities (i.e. transportation, housing, environmental, energy, land use) with the goal of reducing greenhouse gas emissions and vehicle miles traveled; • Incentive programs to reduce commutes by single occupancy vehicles; • Improvements in operational and system efficiency of the transportation system such as implementation of intelligent transportation system (ITS) strategies; • Idle-reduction technologies and/or facilities to conserve energy, reduce harmful air pollutants, and greenhouse gas emissions from freight movement; and • Installation of solar panels on interstate rights-of-way to conserve energy in highway operations and maintenance activities. 8. Building Codes and Inspections: Entities may develop and implement building codes and inspection services to promote building energy efficiency. 9. Enerqv Distribution: Entities may implement distributed energy resource technologies that significantly increase energy efficiency, including: • District heating and cooling systems • Combined heat and power systems • Cogeneration systems • Energy Storage systems • Absorption chillers • Desiccant humidifiers • Micro turbines • Ground source heat pumps 10. Material Conservation Programs: Entities may implement activities to increase participation and efficiency rates for material conservation programs, including source reduction, recycling, and recycled content procurement programs that lead to increases in energy efficiency. 11. Reduction and Capture of Methane and Greenhouse Gases: Entities may use grant funds to purchase and implement technologies to reduce, capture, and, to the maximum extent practicable, use methane and other greenhouse gases generated by landfills or similar waste-related sources, such as wastewater treatment plants, operations producing food waste, dairy farms and other animal operations. 12. Traffic Signals and Street Lighting: Entities may use grant funds to replace traffic signals and street lighting with energy efficient lighting technologies, including light emitting diodes; and any other technology of equal or greater energy efficiency. 13. Renewable Enerqv Technologies on Government Buildings: Entities may use grant funds to develop, implement, and install on or in any government building of the eligible entity onsite renewable energy technology that generates electricity from renewable resources, including solar energy; wind energy; fuel cells; and biomass. 14. Any Other Appropriate Activity: Entities may submit any other appropriate activity for approval in the Energy Efficiency and Conservation Strategy.