ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE

Transcription

1 ENERGY & ENVIRONMENTAL RESOURCES COMMITTEE Thursday, April 14, :00 Noon CVAG Offices Fred Waring Drive, Suite 119 Palm Desert, CA (760) Video conferencing will be available at: City of Blythe City Hall 235 N. Broadway, Room A Blythe, California If technical difficulties exist, teleconferencing will be available. THIS MEETING IS HANDICAPPED ACCESSIBLE. ACTION MAY RESULT ON ANY ITEMS ON THIS AGENDA 1. CALL TO ORDER (Mayor Steve Pougnet, City of Palm Springs, Chair) 2. ROLL CALL A. Member Roster P PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS This is the time and place for any person wishing to address the Energy and Environmental Resources Committee to do so.

2 5. COMMITTEE MEMBER / DIRECTOR COMMENTS 6. CONSENT CALENDAR A. Approve the March 10, 2011 Energy & Environmental Resources Committee Minutes P. 4 B. Receive and File 1) CVAG Contribution to 2011 Coachella Valley Energy Summit May 12 and May 13, 2011 P. 8 2) Energy and Environmental Resources Committee Attendance Roster P DISCUSSION / ACTION A. Adoption of Goals and Objectives for Fiscal Year 2011/2012 Katie Barrows P. 10 Recommendation: Adopt the goals and objectives for the Committee for Fiscal Year B. Southern California Edison Presentation: General Rate Case Russ Worden, SCE Director of General Rate Case C. Consider Authorization to Release Request for Proposal for the Used Oil Recycling Program Contract for Fiscal Year 2011/ Katie Barrows P. 13 Recommendation: Consider Authorization to Release Request for Proposal for the Used Oil Recycling Program Contract for Fiscal Year 2011/2012. D. Energy Efficiency Green Government Initiative Update Jacob Alvarez P. 14 E. Support for Pilot Feed-in Tariff Program to Incentivize Solar Energy and Promote Job Creation - Katie Barrows P. 15 Recommendation: Support Pilot Coachella Valley Feed-in Tariff Program and Request Support Letters from CVAG Member Agencies. 8. LEGISLATIVE UPDATE A. Land and Water Conservation Fund (LWCF) Support 9. ANNOUNCEMENTS Next Scheduled Meeting: Energy & Environmental Resources Committee Thursday, June 9, 2011, 12:00 noon, at Fred Waring Drive, Suite 119, Palm Desert, CA. 2

3 ITEM 2A Coachella Valley Association of Governments Energy & Environmental Resources Committee Roster Energy and Environmental Resources Committee Members City of Blythe Councilmember Richard Contreras City of Cathedral City Councilmember Sam Toles City of Coachella Councilmember Emmanuel Martinez City of Desert Hot Springs Mayor Yvonne Parks, Vice Chair City of Indian Wells Councilmember Larry Spicer City of Indio Councilmember Michael Wilson City of La Quinta Councilmember Stanley Sniff City of Palm Desert Councilmember Cindy Finerty City of Palm Springs Mayor Stephen Pougnet, Chair City of Rancho Mirage Councilmember Gordon Moller County of Riverside, 4 th District Supervisor John J. Benoit Mission Springs Water District Board Member Nancy Wright Imperial Irrigation District Board Member Anthony Sanchez Agua Caliente Band of Cahuilla Indians Tribal Vice Chair Jeff L. Grubbe Cabazon Band of Mission Indians Unassigned Non-Voting Members Coachella Valley Water District Board President Corky Larson Desert Water Agency Board Member Patricia Oygar Staff Tom Kirk, Executive Director Katie Barrows, Director of Environmental Resources Aurora Wilson, Director of Community Resources Jim Sullivan, GIS Program Director Jacob Alvarez, Management Analyst Linda Rogers, Program Assistant II

4 ITEM 6A Energy & Environmental Resources Committee Meeting Minutes March 10, 2011 The audio file for this committee can be found at: 1. CALL TO ORDER The meeting of the Energy and Environmental Resources Committee was called to order by Chair Stephen Pougnet at 12:15 p.m. on March 10, PLEDGE OF ALLEGIANCE Supervisor Benoit led in the Pledge of Allegiance. 3. ROLL CALL Roll call was taken and it was determined that a quorum was present. Members Present Councilmember Richard Contreras Councilmember Sam Toles Mayor Yvonne Parks Councilmember Larry Spicer Councilmember Michael Wilson Councilmember Stan Sniff Councilmember Cindy Finerty Mayor Stephen Pougnet Councilmember Gordon Moller Supervisor John J. Benoit Board Member Nancy Wright Board Member Corky Larson Members Absent Councilmember Emmanuel Martinez Board Member Anthony Sanchez Board Member Patricia Oygar Others Present Mayor Kathleen DeRosa Councilmember Sam Patel Deborah McGarrey Emily Nelson Danielle Soto Agency City of Blythe City of Cathedral City City of Desert Hot Springs City of Indian Wells City of Indio City of La Quinta City of Palm Desert City of Palm Springs City of Rancho Mirage County of Riverside 4 th District Mission Springs Water District Coachella Valley Water District (non-voting member) City of Coachella Imperial Irrigation District Desert Water Agency (non-voting member) City of Cathedral City City of Blythe Southern California Gas Co. Consultant South Coast Air Quality Mgmt. District 1

5 CVAG Staff Tom Kirk Katie Barrows Aurora Wilson Jim Sullivan Jacob Alvarez Linda Rogers 4. PUBLIC COMMENTS Mayor DeRosa addressed the committee to introduce Councilmember Sam Toles, Cathedral City s newly elected representative. Councilmember Toles will be representing Cathedral City on the Energy & Environmental Resources Committee. 5. COMMITTEE MEMBER & DIRECTOR COMMENTS Chair Pougnet announced he would need to leave the meeting at 1:05 p.m. and that the gavel would be turned over to Vice Chair Parks if the meeting was still in progress. 6. CONSENT CALENDAR APPROVAL: IT WAS MOVED BY COUNCILMEMBER SNIFF AND SECONDED BY COUNCILMEMBER WILSON TO: A. Approve the January 13, 2011 Energy & Environmental Resources Committee Minutes. B. Support inclusion of the Coachella Valley Mountains Conservancy in any future State Water Bond and authorize the Chair or Executive Director to contact local legislators requesting their support and to sign a letter of support if necessary. THE MOTION CARRIED. C. Receive and File 1) Energy and Environmental Resources Committee Attendance Roster Item C1 was received and filed. 7. DISCUSSION / ACTION A. Presentation by the City of Indian Wells on Indian Wells Villas: A Green and Sustainable Low Income Housing Project Corrie Kates, City of Indian Wells, gave a presentation on the City s first go green project that they are proud to unveil. Through partnerships with Southern California Edison, the Gas Company and Coachella Valley Water District funding was made available to upgrade 90 senior affordable housing units. Mr. Kates described the upgraded energy efficient systems that were incorporated into the project and discussed the rebates that were available to the City. Energy & Environmental Resources Committee 2 Meeting Minutes

6 B. Vacancy for SCAG s Energy and Environment Committee Supervisor Benoit volunteered to serve as the representative at the January meeting, however, it was necessary for him to withdraw his name due to a meeting conflict with the SCAG Transportation Committee. Councilmember Sam Toles volunteered to serve as the representative for SCAG s Energy and Environment Committee. IT WAS MOVED BY SUPERVISOR BENOIT AND SECONDED BY COUNCILMEMBER SPICER TO NOMINATE COUNCILMEMBER TOLES TO SERVE AS CVAG S REPRESENTATIVE TO SCAG S ENERGY AND ENVIRONMENT COMMITTEE. THE MOTION CARRIED. C. Request for Proposal for Regional PM-10 Street Sweeping Program IT WAS MOVED BY SUPERVISOR BENOIT AND SECONDED BY MAYOR PARKS TO: 1) AUTHORIZE STAFF TO PREPARE AND ISSUE A REQUEST FOR PROPOSAL (RFP) FOR OPERATIONS OF THE REGIONAL PM10 STREET SWEEPING PROGRAM; 2) AUTHORIZE THE EECUTIVE DIRECTOR TO ENTER INTO NEGOTIATIONS WITH THE RECOMMENDED OPERATOR. THE MOTION CARRIED. D Coachella Valley Energy Summit May 12 and May 13, 2011 Katie Barrows provided an overview of the collaborative venture of CVAG and the Coachella Valley Economic Partnership in partnering on the 2011 Coachella Valley Energy Summit, May 12 and 13. Staff discussed the progress currently underway by the program committee which includes CVAG, CVEP, IID, SCE, and the Gas Co. The agencies and utilities have been actively working on the program, speakers and sponsorships. Further details of the summit were included in the staff report, and a flyer was distributed to committee members. E. Update on Energy Efficiency Strategic Plan Katie Barrows discussed funding from SCE for implementation of the California Energy Efficiency Strategic Plan. CVAG received notice yesterday that a Notice to Proceed has been approved by SCE. CVAG submitted the original request back in April for $6.1 million for various energy efficiency related programs for jurisdictions in SCE territory. Through the process our budget was reduced to just under $5 Million. The next step will be to release an RFP to solicit consultant support for this program. Staff has also been working with Imperial Irrigation District (IID) to discuss the potential for funding opportunities for those cities served by IID; namely, La Quinta, Coachella and Indio. Staff will bring back a more complete presentation at the next meeting. Energy & Environmental Resources Committee 3 Meeting Minutes

7 F. Support for Energy Efficiency Funding for Southern California Gas Company IT WAS MOVED BY COUNCILMEMBER WILSON AND SECONDED BY COUNCILMEMBER SNIFF TO AUTHORIZE A LETTER OPPOSING TRANSFER OF ENERGY EFFICIENCY FUNDS FROM SOUTHERN CALIFORNIA GAS COMPANY TO THE STATE GENERAL FUND. THE MOTION CARRIED. G. Energy and Water Conservation Subcommittee IT WAS MOVED BY SUPERVISOR BENOIT AND SECONDED BY COUNCILMEMBER SNIFF TO DISCONTINUE THE ENERGY AND WATER CONSERVATION SUBCOMMITTEE. THE MOTION CARRIED. 8. LEGISLATIVE UPDATE A. AB 61 Neighborhood Electric Vehicle Legislation IT WAS MOVED BY COUNCILMEMBER SNIFF AND SECONDED BY SUPERVISOR BENOIT TO CONTINUE THIS ITEM TO THE NET MEETING. THE MOTION CARRIED. 9. ANNOUNCEMENTS Councilmember Toles requested that an item be placed on the next agenda regarding SCE s desire to raise their rates by 8%. Next Scheduled Meeting: Energy & Environmental Resources Committee Thursday, April 14, 2011, 12:00 noon, at Fred Waring Drive, Suite 119, Palm Desert, CA. The meeting adjourned at 1:07 p.m. Respectfully submitted, Linda Rogers Linda Rogers Program Assistant II Energy & Environmental Resources Committee 4 Meeting Minutes

8 ITEM 6B.1 Coachella Valley Association of Governments Energy & Environmental Resources Committee April 14, 2011 Staff Report Subject: Contact: CVAG Contribution to 2011 Coachella Valley Energy Summit May 12 and May 13, 2011 Katie Barrows, Director of Environmental Resources RECOMMENDATION: Receive and File Consent BACKGROUND: Planning for the 2011 Coachella Valley Energy Summit on Thursday, May 12, and Friday, May 13, 2011 is in progress with CVAG and the Coachella Valley Economic Partnership (CVEP) as co-leads. The May 12 Energy Summit at the Palm Springs Convention Center will bring together local, regional, and national leaders in government, energy, and the private sector to explore and discuss how our region can advance energy efficiency, renewable energy, greenhouse gas reduction, and green job growth in the Coachella Valley and beyond. Friday, May 13 will feature a Renewable Energy tour to highlight renewable energy and other clean technology opportunities in the Coachella Valley region. Actor and environmentalist Ed Begley, Jr. and Gene Rodrigues, Director of Energy Efficiency for Southern California Edison have been confirmed as speakers. Sponsorships have been confirmed from Southern California Edison (SCE) and Southern California Gas Company for $10,000 each, Imperial Irrigation District and the City of Palm Springs for $5,000, Coachella Valley Economic Partnership for $5,000, and City of Indian Wells and Supervisor Benoit for $1,000. CVAG has funds remaining from the 2009 Energy Summit that could be used to support this year s event. Executive Director Tom Kirk has authorized a contribution of $5,000 from CVAG. Other funds from 2009 will be used to support CVAG staff time and development of materials for the Summit. BurkeRix Communications is serving as event manager and is handling registration, logistics, contracts with the convention center and all event coordination. During the Thursday May 12 Summit, we are inviting all Coachella Valley mayors to participate in a panel to highlight the progress made by our local jurisdictions since the Sustainability Pledge was signed by valley leaders in We would like to have the mayor or other representative of each jurisdiction present to briefly highlight your energy, green jobs and sustainability accomplishments. CVAG staff is coordinating with your staff to confirm your mayor or City Council member s availability and participation as well as the information we would like them to present. FISCAL ANALYSIS: The 2011 Energy Summit will be funded through sponsorships and ticket sales for the two-day event. CVAG will provide a $5,000 sponsorship to the 2011 Energy Summit, using funds remaining from the 2009 Energy Summit.

9 2011 Attendance Roster Energy and Environmental Resources Committee Jurisdictions CALENDAR YEAR 2011 Voting Members: Jan Mar Apr June Jul Sept Nov Blythe Cathedral City Coachella Desert Hot Springs Indian Wells Indio La Quinta Palm Desert Palm Springs Rancho Mirage Riverside County - 4th District Imperial Irrigation District (IID) Mission Springs Water District Non-Voting Members: Coachella Valley Water Dist. Desert Water May 2010 * CVAG Committees go dark in August and December ** The committee did not meet in February V or T = Elected in attendance via Video(V) or Teleconference(T) = Elected member in attendance = Member Absent = Non-Voting Member Absent ITEM 6B.2 Prepared on 4/5/2011

10 Item 7A Coachella Valley Association of Governments Energy and Environmental Resources Committee April 14, 2011 Staff Report Subject: Adoption of Goals and Objectives for Fiscal Year Contact: Katie Barrows, Director of Environmental Resources RECOMMENDATION: Adopt the goals and objectives for the Committee for Fiscal Year BACKGROUND: As part of the CVAG budget process, it is time to adopt the proposed goals and objectives for the Energy and Environmental Resources Committee for 2011/2012. These goals and objectives bring together the valley-wide efforts to promote conservation and sustainable use of our resources. Staff requests input from the Committee at the meeting regarding these goals and objectives. Staff will provide an update on April 14 about our progress on the 2010 goals and objectives. In 2010, CVAG received funding for the first time for a valley-wide Waste Tire Recycling Program; we have submitted a request for continued funding for next year and expect to hear from CalRecycle soon. The Used Oil Recycling program will continue with funding from CalRecycle as well. Funding for the Desert Cities Energy Partnership continues to support advancement of our energy efficiency goals. In 2011, work on energy efficiency, green building, and greenhouse gas reduction goals will be advanced by funding CVAG has received from Colmac for a regional Climate Action Plan and from Southern California Edison and the California Public Utilities Commission for California Energy Efficiency Strategic Plan implementation. The following are proposed goals and objectives for the coming year: I. Energy Conservation: The goal of the Energy Conservation program is to foster cultural change toward improved energy conservation and enhanced energy efficiency. The Committee works to identify, initiate, and support energy conservation and energy efficiency initiatives within the Coachella Valley and Palo Verde Valley. Objectives: 1. Continue the Desert Cities Energy Partnership, a regional energy efficiency partnership program involving member jurisdictions, local utilities and other partners, for the period. In 2010, CVAG cities saved over 1.2 million kwh of electricity. In 2011, our goal is at least 973,882 kwh. 2. Launch the Green Government Initiative to implement energy efficiency, greenhouse gas reduction, energy use monitoring and other programs. This program is funded by $4.91 million in funding from SCE to support the California Energy Efficiency Strategic Plan. 3. Model energy efficiency and showcase new energy conservation and alternative technologies in buildings, facilities, and programs. 4. Promote awareness and education about energy efficiency, renewable energy, and conservation. Through the Desert Cities Energy Partnership Working Group, coordinate with member jurisdictions on community outreach events and educational programs. 5. Evaluate our progress toward the valley-wide goal of reducing energy consumption by 10% by As part of this effort, update the 2005 baseline energy use for all

11 jurisdictions to measure our progress toward this goal. 6. Present an energy and sustainability summit in 2011, in cooperation with other partners. 7. Provide information on energy-related legislative issues. Prepare position letters as appropriate on energy, climate change and related issues before state, federal, and local legislative bodies 8. Continue to promote a long-term strategic plan fostering cultural change toward improved energy conservation, enhanced energy efficiency, and reduction in greenhouse gas emissions. 9. Coordinate with regional transportation and air quality programs to integrate efforts regarding energy conservation and efficiency and greenhouse gas emissions II. Air Quality: The goals of the Air Quality program are to improve the air quality in the Coachella Valley and to reduce the impacts of PM-10 through regional coordination. Objectives: 1. Continue to coordinate established PM-10 mitigation efforts with member jurisdictions and the South Coast Air Quality Management District as indicated in the Coachella Valley State Implementation Plan (CVSIP). 2. Work with the South Coast Air Quality Management District to support air quality legislative efforts particularly those measures that impact the Coachella Valley; 3. Continue to coordinate supportive efforts with the Salton Sea Authority particularly as it relates to negative impacts to air quality and provide awareness to the member jurisdictions of those impacts to the region, the health of our residents, and the economy; 4. Monitor funding streams for the operation of the Regional PM-10 Street Sweeping Program, including the Mobile Source Air Pollution Reduction Review Committee (MSRC) and Colmac funds; 5. Continue to offer the Reseeding Options brochure to educate the public regarding this proven alternative reseeding method; 6. Continue to implement the Landscape Model Ordinance and offer an online certificated course for landscapers and landscape-related businesses on the benefits of the Reseeding Alternative prior to receiving their business license III. Solid Waste: The Solid Waste Program addresses the goal of increasing the recycling and reuse of solid wastes through regional coordination. Objectives: 1. Used Oil Recycling Program Coordinate ongoing program to promote recycling and appropriate disposal of used oil 2. AB 939 Solid Wastes Maintain regional coordination on Household Hazardous Waste collection facilities Provide the Committee with updates and information on legislation regarding solid waste issues that may affect local governments in the Coachella Valley 3. Waste Recycling and Reuse Green Waste, Carpet, and other Wastes Identify ways to encourage recycling and reuse of wastes Promote producer responsibility with the California Product Stewardship Council to reduce public costs and improve product design to promote environmental sustainability. 4. Waste Tire Recycling/Amnesty Program Continue and expand the Waste Tire Amnesty/Recycling program funded by CalRecycle if funding is received. IV. Salton Sea Restoration: CVAG strongly supports efforts to maintain and restore the Salton Sea. We want to encourage active participation by CVAG and our member jurisdictions in the effort to restore the Salton Sea. Objectives: 1. Actively promote and participate in the efforts to restore the Salton Sea. 2. Work with the Salton Sea Authority, state and federal agencies to identify ways that

12 CVAG can help with Salton Sea restoration. 3. Provide information to the member jurisdictions on the Salton Sea and related issues. V. Water Conservation and Water Quality: Ensure the quality of our water supply and encourage long-term conservation of water resources in the Coachella Valley. Objectives: 1. Monitor regional efforts to protect and enhance water quality 2. Inform our member agencies about the Integrated Regional Water Management Plan (IRWMP); provide support to Coachella Valley water agencies in development and implementation of this plan. 3. Inform and educate member agencies with updates and information on water conservation programs and policies that affect the Coachella Valley 4. Coordinate with water agencies to encourage and promote water conservation. Identify specific ways to establish measurable regional objectives for water conservation (such as baseline water use goals and data similar to those for energy use). 5. Provide information regarding innovative programs and best practices regarding water conservation and water use efficiency to member agencies VI. Habitat Conservation Implementation of the CVMSHCP is the responsibility of the Coachella Valley Conservation Commission. Periodic updates on the status of the CVMSHCP will be provided to the Energy and Environmental Resources Committee. Objectives: 1. Monitor implementation of the Coachella Valley Multiple Species Habitat Conservation Plan. VII. Sustainable Resource Use All of the elements of the Energy and Environmental Resources Program support sustainability in our use of natural resources. Significant efforts have been made by CVAG jurisdictions to promote sustainable resource use. A 2010/2011 goal is to continue to highlight past successes by our member agencies and identify future opportunities to promote sustainable resource use. Objectives: 1. Provide forums for communication among member jurisdictions to promote resource conservation and sustainability. 2. Develop a report card on the Coachella Valley s progress toward sustainability goals. VIII. Climate Change and Greenhouse Gas Reduction Coordinate efforts to enhance awareness of climate change and ways to reduce greenhouse gas emissions. 1. Distribute results of the regional greenhouse gas inventory for the Coachella Valley and identify how it can be used by our members. 2. Coordinate with our members on greenhouse gas inventories and climate action to promote and support local jurisdictions. This task will be funded in part by SCE Green Government Initiative funding. 3. Initiate development of a regional Climate Action Plan for the Coachella Valley in coordination with member jurisdictions. This project is funded by Colmac and SCE funds. I. Other Goals and Objective as Recommended by Members of the Committee FISCAL ANALYSIS: None, information only.

13 ITEM 7C Coachella Valley Association of Governments Energy & Environmental Resources Committee April 14, 2011 Staff Report Subject: Contact: Consider Authorization to Release Request for Proposal for the Used Oil Recycling Program Contract for Fiscal Year 2011/2012 Katie Barrows, Director of Environmental Resources RECOMMENDATION: Consider Authorization to Release Request for Proposal for the Used Oil Recycling Program Contract for Fiscal Year 2011/2012 BACKGROUND: The Used Oil Recycling program has been successfully implemented through the use of consultants to provide program coordination and staff services. In October 2006 CVAG initiated an Agreement for Professional Services with HF&H Consultants, LLC to provide for the coordination and implementation of the Used Oil Recycling Program and support for the Solid Waste (AB 939) Technical Working Group. This agreement was extended in July 2007, as the consultant agreed to hold the contract at the same amount as for 2006/2007, $58,000. In 2008, CVAG released an RFP, selected HF&H, and entered into a contract for 3 years at $58,000 per year. That contract expires on July 31, Staff is requesting authorization to prepare and circulate a Request for Proposals for a consultant for the Used Oil Recycling program. The RFP will be distributed to a list of qualified entities, including the current consultant. It will be posted on the CVAG website. Once proposals are received, a selection committee, including members of the Solid Waste Management Technical Working Group, will be formed. A recommended consultant and contract will be brought back to this committee following the selection process. This item will be discussed at the next Technical Working Group meeting on May 9. The RFP for the Used Oil Recycling Program will request proposals for the 2011/2012 fiscal year, including the following program objectives: Plan and staff used oil filter exchange events in member cities Gather statistical data for one year of used oil collection for all of the cities that contract with CVAG to manage their used oil grant funds. These data are used as the baseline to assess progress toward the program goal of increasing used oil recycling by 5% over previous year Conduct certified center inspections in the Coachella Valley Prepare status reports on the Used Oil Recycling Program for CVAG use Assist CVAG with preparation of the annual report to the California Integrated Waste Management Board. Develop and implement a marketing program to promote used oil events, used oil recycling and related tasks in support of CVAG member jurisdictions Coordinate and staff the Used Oil Recycling Program under direction from CVAG FISCAL ANALYSIS: The Used Oil Recycling Program is fully funded by a grant from the California Integrated Waste Management Board and the contract amount will not exceed the funds available for this purpose.

14 ITEM 7D Coachella Valley Association of Governments Energy and Environmental Resources Committee April 14, 2011 Staff Report Subject: Contact: Energy Efficiency Green Government Initiative Update Jacob Alvarez, Management Analyst BACKGROUND: CVAG in collaboration with its Desert Cities Energy Partnership was awarded a $4.91 million dollar grant from Southern California Edison (SCE) to conduct strategic plan activities centered on energy efficiency and addressing the Big, Bold strategies and related local government goals found in the CPUC s California s Long-Term Energy Efficiency Strategic Plan ( CEESP ). CVAG named this new program the Energy Efficiency Green Government Initiative. This grant will assist cities served by SCE; however, much of the work that is completed will be shared regionally. We will coordinate with Imperial Irrigation District and cities they serve throughout the process. CVAG was awarded funding from SCE to advance the following CEESP Goals: Strategic Plan Goal 1 Local governments lead adoption and implementation of reach codes stronger than Title 24 on both mandatory and voluntary bases. Strategic Plan Goal 3 Local governments lead by example with their own facilities and energy usage practices. Strategic Plan Goal 4 Local governments lead their communities with innovative programs for energy efficiency, sustainability and climate change With the recent finalization of the award along with the Notice to Proceed received in early March, CVAG is seeking qualified consultants from throughout the state to submit in response to a request for proposals (RFP). Interested bidders are allowed to bid on one or all three elements. Proposals are due at 5:00 pm on April 20 th and the RFP can be found at CVAG staff has met with staff from jurisdictions served by SCE throughout the application and award process for feedback and input. CVAG staff is in the process of setting up individual meetings with city staff to review the Green Government Initiative implementation plan. Staff encourages that staff from City Planning, Building & Safety, Engineering, and Public Works departments attend (as available) along with your Desert Cities Energy Partnership liaison. Representation from each department will allow for a collective and cohesive program development and implementation especially given the aggressive timeline and nature of this project. Lastly, CVAG staff would like to arrange to meet with City Councils and we will work with City staff to find the most appropriate time. A presentation on this program will be made to the Energy and Environmental Resources Committee at their April 14 meeting. FISCAL ANALYSIS: CVAG was awarded $4.91 million dollar in funding from SCE. This grant will pay for CVAG staff time and jurisdiction staff time as long as it conforms to Green Government Initiative Statement of Work and is an allowable expense.

15 ITEM 7E Coachella Valley Association of Governments Energy & Environmental Resources Committee April 14, 2011 Staff Report Subject: Contact: Support for Pilot Feed-in Tariff program to Incentivize Solar Energy and Promote Job Creation Katie Barrows, Director of Environmental Resources Recommendation: Support Pilot Coachella Valley Feed-in Tariff Program and Request Support Letters from CVAG Member Agencies. Background: At the July 26, 2010 meeting, the Executive Committee authorized the attached letter to the President of the California Public Utilities Commission requesting consideration of pilot programs to incentivize solar energy and promote job creation in the CVAG region, including a Feed in Tariff program for the Coachella and Palo Verde Valleys. Palm Desert City Council members Cindy Finerty and Jim Ferguson followed up by delivering the CVAG letter to President Peevey at a meeting they had with him in August In a Desert Sun interview on Sunday, March 13, 2011 (see attached), CPUC President Peevey was asked about the potential for a pilot feed in tariff program for the Coachella Valley. He commented, "I'm very open to looking at a feed-in tariff here as a pilot for the valley if there's enough interest from local government... For the Public Utilities Commission to take this seriously, we need a real push from local communities." To indicate our interest in and willingness to participate in a pilot Coachella Valley program to incentivize solar energy and the related job creation, we are requesting a letter of support from each CVAG member agency, addressed to the California Public Utilities Commission. A sample letter is attached. With our 354 days of sunshine, the Coachella Valley is the ideal location for intensive use of solar energy to power our homes and businesses. Opportunities and incentives for installing solar energy on rooftops, in parking lots, and on big-box stores will contribute to our valley-wide effort to promote renewable energy. Through a feed-in tariff program, homeowners, farmers, businesses, churches, schools, or other institutions can install a solar system and receive payments for the excess electricity they generate; people can sell it back to their local utility. A recent study by UCLA s Luskin Center for Public Policy describes the benefits of a feed-in tariff program, which include: 1) a significant number of high-wage jobs are produced; 2) unused solar generation capacity of homes, businesses and parking lots is tapped; 3) utility transmission costs and peaking costs for utilities are reduced; 4) clean energy to meet renewal energy goals is generated. The UCLA study is available at: Angeles pdf A letter from CVAG Executive Director Tom Kirk will be sent to CPUC President Peevey regarding this pilot program. Staff requests that each jurisdiction send the attached model letter to the California Public Utilities Commission in support of a pilot Feed-in Tariff program. Fiscal Analysis: Information only. Model Letter: Coachella Valley Feed-In Tariff Pilot Program

16 California Public Utilities Commission president gives view on green energy Written by K Kaufmann The Desert Sun Sunday, March 13, 2011 Michael Peevey may have spent years as a public utility executive including three as CEO of Edison International and Southern California Edison but the president of the California Public Utilities Commission also is a graduate of UC Berkeley and, one suspects, a bit of a rabblerouser at heart. At least that's the impression he left on participants the PACE Solutions conference earlier this month in Palm Desert. Taking the stage for a keynote, Peevey quoted Great Depression folk singer Woody Guthrie and lashed out at the Federal Housing Finance Agency for its opposition to clean energyfinancing programs such as Palm Desert's. The agency's opposition to the energy-financing programs has shut down programs across the country, although Palm Desert's is still open. The stakes are extremely high as literally billions of dollars of potential investment (has been) effectively sidelined by the FHFA's stand, he said. Woody Guthrie sang, Some people rob you with a six-gun, others with a fountain pen.' I honestly feel that the FHFA is robbing the people of America and local governments of America with the single stroke of a pen. Peevey is in fact passionate about energyefficiency, although his support of smart meters, the smart grid and new transmission lines have at times put him at odds with environmental and ratepayers groups. In an interview with The Desert Sun, Peevey discussed the pros and cons of smart meters, the prospects for a feed-in tariff pilot program in the Coachella Valley and the best ways to get utilities to push for energy efficiency. The Desert Sun: Let's talk smart meters. They've been a hard sell in the Coachella Valley and elsewhere because people don't see the immediate benefits; some have seen their bills go up. Michael Peevey: That cannot be true. We spent $1.5 million with a firm in Houston who looked into the accuracy of the smart meters because that was the first claim that people made. We found them to be percent accurate, much more accurate than the current meters that can be off by 2 percent. Frankly, the problem has been that old meters existing meters that are being replaced throughout the system when they ran slow, nobody complained. The bill was less than it would have been otherwise if (a meter) were accurately reporting. What about time of use rates and dynamic pricing the new rate structures that are part of the smart meter program. Pacific Gas & Electric has already had problems introducing the new rates to commercial customers, and ratepayer advocates are calling for more education and a gradual introduction process. Given the challenges PG&E is facing at this moment, a one-year deferral may make a lot of sense to seriously consider. But do you feel more education needs to be done on this issue? I think that's absolutely true. Yes, I do think that. The most successful use of smart meters so far today has been in the

17 Sacramento Municipal Utility District, where they installed hundreds of thousands without any (problem). They did a very aggressive campaign to educate people about what was coming, and therefore they got a lot of support. Time of use rates also are a difficult sell in the desert because of our hot summers when people have to run their air conditioning all day. How does introduction of those rates need to be handled for residential customers to avoid big spikes in their electric bills? That has to be handled by the implementers, which are the utilities and the Public Utilities Commission. We have many different climate zones in the state and (we need) to take the climate zones into account in setting time of use rates. Obviously no one wants to see (high bills) be the outcome. Feed-in tariffs can we get a pilot program here in the Coachella Valley? What's holding things up? I know the Coachella Valley Association of Governments has expressed an interest in this. I'm very open to looking at a feed-in tariff here as a pilot for the valley if there's enough interest from local government. The utilities do not seem particularly interested in going forward with such a program. For the Public Utilities Commission to take this seriously, we need a real push from local communities. The big challenge now is a lot of impediments in the utility planning process on the local level on distributed generation and upgrading substations. Gov. (Jerry) Brown has a very strong interest in distributed generation, and his staff has already talked to me and others on the Public Utilities Commission on ways to speed up the siting of interconnections from solar here and all over. Another recent hot-button issue for the commission was your vote at the end of 2010 to give Edison and other utilities millions of dollars in energy-efficiency bonuses that ratepayer advocates claim they did not earn. They were not bonuses; they were simply part of the program that we established a couple of years earlier that if they achieved certain goals, they got a financial return on their investments. They achieved their goals so they got a reward for energy efficiency. It's all based on the premise that a carrot is preferable to a stick. You want them to have the same attitude on energy efficiency that they do on new transmission or power plants. They want an economic return on their investment; we want them to have an economic return on energy efficiency if they meet the goals that they set. In terms of ramping up solar and wind energy in the desert, transmission is a big issue. The permitting process is very long and some independent energy companies say the big utilities have elbowed them out of the market. What needs to happen? The Public Utilities Commission has approved every major transmission project in the past five years that has come before it, the most notable in this area being the (Devers-Palo Verdes 2) line.

18 Letterhead April 14, 2011 President Michael R. Peevey California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA RE: Coachella Valley Feed-in Tariff Pilot Program Dear President Peevey: On behalf of the City of, I am writing to encourage your consideration of a pilot Feed-in Tariff program to incentivize solar energy and help bolster our economy. We are a member agency of the Coachella Valley Association of Governments. The CVAG area includes the Coachella Valley and the Palo Verde Valleys, both ideal locations for solar energy with lots of sun and lots of high-cost air conditioning to offset with clean and green electrons. Today the vast majority of our power is provided from conventional power resources that have long-term issues of sustainability. Goals of energy independence remain distant. On July 28, 2010, Mayor Yvonne Parks, Chair of the CVAG Executive Committee, sent you a letter requesting your consideration of a Coachella Valley Feed-in Tariff Pilot Program. We were very pleased to see your comments in the Desert Sun on March 13, 2011 and want to express our strong support for a pilot program here in the Coachella and Palo Verde Valleys. For residents of the CVAG communities, including our City, despite near-perfect solar conditions, tremendous potential is left on the table. The roof-top real estate on most homes and commercial buildings remains unused for solar production. This lost opportunity is particularly painful during the summer peak period when electricity rates are high. The opportunity for utilities to purchase clean renewable energy to meet state standards could also be explored. The Coachella Valley Association of Governments has united through the CPUC sponsored Palm Desert Energy Partnership and the Desert Cities Energy Partnership to show leadership in energy efficiency and climate action planning. The next step is to expand the use of solar energy and other renewable sources which will bring clean and green jobs to our region. We would like to explore a new model for incentives to solar power production. The Feed In Tariffs (FITs) model used so effectively in Germany and Ontario, Canada, and now being used in Vermont and Florida, is worthy of full examination and deployment. The Coachella Valley Association of Governments (CVAG) realizes that California has a FIT experiment underway and that its subscription level has thus far been low. We propose another experiment, this time in the Coachella Valley and working with its committed cities and eager residents. The CVAG cities wish to join with the California Public Utilities Commission and its serving electric utility Southern California Edison to enact a pilot program to promote solar energy and green jobs in the CVAG area of jurisdiction. Although no formal discussions have taken place with SCE, we believe a pilot feed-in tariff program would be one excellent way to determine the most effective strategies. As some of CVAG s member agencies are served by Imperial Irrigation District, we would work with IID to identify opportunities for their ratepayers.

19 We believe the Coachella Valley is an ideal location for a pilot program to incentivize solar energy and promote green jobs. CVAG and our member agencies are working together to increase our energy efficiency and meet climate action and sustainability goals. Our communities include a broad spectrum of socio-economic groups. As one option, we are hopeful that a Coachella Valley/Palo Verde Valley Feed-in Tariff program could be designed by the parties, including the CPUC and SCE, in a collaborative process that could potentially provide sufficient returns to investors while supporting the long-term financial interests of electric ratepayers and meeting the renewable energy goals established for California. Please consider this a request for the CPUC to work with SCE, CVAG, and the City of to develop a pilot Feed-in Tariff program. I appreciate your consideration of this request. Sincerely, Name Mayor

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