Ross Borden, Director of Intergovernmental Affairs. Recommended Projects for EECBG Direct Allocation

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1 To: From: Mayor and Council Ross Borden, Director of Intergovernmental Affairs Date: June 3, 2009 Re: Recommended Projects for EECBG Direct Allocation SUMMARY As part of the American Recovery and Reinvestment Act (ARRA), commonly known as the Stimulus bill, the City received a direct allocation of $2.04 million in Energy Efficiency and Conservation Block Grant (EECBG) funds. A City working group consisting of representatives from Public Works, Housing & Community Development, Planning & Development Services, Economic Development and the Mayor s Office has been meeting at least weekly since March assembling a list of projects that comply with this Stimulus opportunity s principles, outcomes and eligible activities (Attachment 1) to recommend to the Mayor and Council. Council consideration of those projects is scheduled for the June 9 Work Session. RECOMMENDATION Attachment 2 shows the projects considered by the working group for EECBG funding of which ten are recommended to the Council. The second set of projects were also deemed viable and would have been included as recommended projects had there been sufficient EECBG funding. For a variety of reasons, the working group does not recommend any of the Also Considered projects. Attachment 3 provides brief descriptions of the recommended projects. Attachment 4 shows various energy efficiency and conservation metrics and sorts the recommended projects by Kwh/Bud$ ( kilowatt-hour saved per budgeted dollar ) as one measure of their benefit. PROCESS Upon Mayor and Council review and approval of the final project list, the City will submit a worthy application to the U.S. Department of Energy by June 25. Upon DOE approval, the City can expect to receive 50% of its EECBG allocation within 60 days. The remainder will be disbursed after the DOE approves the City s quarterly EECBG reports. Requests to appropriate those funds will come to the Council as the grant is formally awarded. ACTION Please provide initial feedback to me on these recommendations by this Friday, June 5

2 6/3/09 Council Memo re: EECBG Attachment 1 U. S. Department of Energy ARRA Energy Efficiency and Conservation Block Grants EECBG PROGRAM PRINCIPLES Prioritize energy efficiency and conservation as the cheapest, cleanest, and fastest ways to meet demand Look for ways to link energy efficiency efforts to long-term priorities Invest in programs & projects that create or retain jobs, stimulate the economy and meet long term energy goals Target programs & projects that provide substantial, sustainable & measurable energy savings, job creation and economic stimulus effects Give priority to programs and projects that leverage federal funds with other public and private resources. To the extent possible, develop programs and strategies that will continue beyond the funding period Ensure oversight, transparency, and accountability for all activities Enact policies that transform markets, increase investments, and support program goals Develop comprehensive plans that benchmark current performance and set aggressive goals PROGRAM OUTCOMES Increased energy efficiency, reduced consumption and costs New jobs and increased productivity to spur economic growth and community development Accelerated deployment of market-ready distributed renewable energy technologies Improved air quality and related indicators associated with the reduction of fossil fuel emissions Improved coordination of energy-related policies and programs across jurisdictions Increased security, resilience, and reliability of energy generation and transmission infrastructure Leverage resources of federal, state, local governments, utilities, private sector and non-profit organizations Widespread use of innovative financial mechanisms that transform markets ELIGIBLE ACTIVITIES 1. Development of an Energy Efficiency and Conservation Strategy 2. Technical Consultant Services 3. Residential and Commercial Building Energy Audits 4. Financial Incentive Programs 5. Energy Efficiency Retrofits 6. Energy Efficiency and Conservation Programs for Buildings and Facilities 7. Development and Implementation of Transportation Programs 8. Building Codes and Inspections 9. Energy Distribution 10. Material Conservation Programs 11. Reduction and Capture of Methane and Greenhouse Gases 12. Traffic Signals and Street Lighting 13. Renewable Energy Technologies on Government Buildings 14. Any Other Appropriate Activity

3 6/3/09 Council Memo re: EECBG Attachment 2 American Recovery & Reinvestment Act Energy Efficiency and Conservation Block Grant EECBG City of Boise Direct Allocation: $2,039,200 City Guidelines 1. Direct citizen benefit (indirect City benefit), e.g. revolving energy efficiency loans 2. Municipal assets (indirect citizen benefit), e.g. LED streetlights 3. City operations (indirect citizen benefit), e.g. Dept Project $ Estimate Recommended Projects 1 P&R Parks & Rec Facilities Energy Efficiency Lighting $ 5,300 2 PW Co-Generation West Boise Waste Water Treatment Facility $ 430,200 3 Fire Fire Stations Energy Efficiency Lighting $ 43,700 4 PDS Adopt 2009 International Energy Conservation Code $ 21,000 5 PW Downtown City-State Geothermal Inter-Tie Reimbursement $ 210,000 6 PW Partner with Idaho Power: Residential Energy Audits & Measures $ 400,000 7 PW LED Streetlight Conversion $ 446,300 8 HCD HCD Energy Retrofit Revolving Loan Fund $ 400,000 9 P&R NeighborWoods, City Forester $ 18,100 # PW Solar Power with Net Metering or Hot Water Heating $ 64,600 Total $ 2,039,200 City of Boise's Direct EECBG Allocation $ 2,039,200 Difference 0 Viable Projects 1 PR Greenbelt new construction, Marianne Williams Park $ 350,000 2 PW LED Office Lighting Conversion $ 300,000 3 PW/PR 36th St. Boise River Pedestrian Bridge Design $ 100,000 4 PR Idaho Ice World Energy Savings Study $ 75,000 5 ED "Green House" Business Incubator Energy Efficiency Improvements $ 178,000 Also Considered 1 P&R Energy efficiency upgrades to Idaho Ice World $ 1.2M - $1.8M 2 PDS State Street Master Plan (as part of VRT TTOP) $ 300,000 3 PDS Establish City Climate Change Coordination Office $ 100,000 4 PDS City-managed Rebates: low flow toilets, efficient lighting, commercial LEED certification $ 260,000 5 PDS Incentives for solar water heating systems $ - 6 PDS Intelligent Transportation Systems technology (with ACHD) $ 250,000 7 PW Energy efficient windows for City Hall $ 1,000,000 8 PW Partnership w/inl e.g. bldg efficiency, trans, renewable energy, CO2 reduction $ - 9 VRT TMO's (Transportation Management Organizations) $ 50,000 # Detox Center to LEED platinum $ - 6/2/2009

4 6/3/09 Council Memo re: EECBG Attachment 3 ARRA/Stimulus Energy Efficiency and Conservation Block Grants (EECBG) Formula Grants City of Boise Direct Allocation: $2,039,200 BRIEF EECBG PROJECT DESCRIPTIONS Tier 1: Recommended Projects 1. Parks & Recreation Energy Efficiency Retrofits: $5,300 (Parks & Recreation) Retrofit existing lighting with energy efficient lighting at five parks and recreation facilities. Ann Morrison Park Shop, Ft. Boise Community Center, Julia Davis Shops, and Morris Hill Cemetery. Will utilize Idaho Power's Easy Upgrades program which provides incentives for energy reduction and can provide rebates of about 25-cents for every dollar spent. 2. West Boise Waste Water Treatment Facility (WBWWTF) Cogeneration Plant: $430,200 (Public Works) Provide about half of the funding required to construct part of a 1 megawatt cogeneration facility fueled by digester methane gas. The construction portion of the project (building, piping and generator mounting pads) is estimated to cost $900,000. The non-construction portion of the project, a generator, is estimated to cost $1.6 million and is anticipated to be acquired through lease. The electricity produced and the recovered heat from the co-generation equipment will reduce the facility s reliance on fossil fuel-produced electricity, provide long-term, ongoing energy savings and provide process heat and space heating in multiple buildings. This project could potentially qualify for an energy savings rebate from Idaho Power. 3. Fire Department Energy Efficiency Retrofits: $43,700 (Fire Department) Retrofit existing lighting with energy efficiency lighting at 13 fire stations. Will utilize Idaho Power's Easy Upgrades program which provides incentives for energy reduction and can provide rebates of about 25-cents for every one dollar spent. 4. Adopt 2009 International Energy Conservation Code: $21,000 (Planning & Development Services) City sponsored training for contractors, architects, staff and other construction professionals regarding 2009 International Energy Conservation Code requirements and any Boise-specific energy conservation requirements. The 2009 International Energy Conservation Code will produce energy efficiency gains of approximately 15% compared to the 2006 edition that Boise currently utilizes. The new code includes requirements for higher efficiency gas furnaces and other HVAC equipment, energy efficient lighting, increase in insulation R-values, etc. 5. Downtown City-State Geothermal Systems Intertie: $210,000 (Public Works) Funds would reimburse an estimated $200,000 of local funding for connecting the City s geothermal system with the State of Idaho (Capitol Mall) geothermal system. State contribution is $170,000. This project has already been bid. Construction is anticipated to be complete by September 15, The resulting system redundancy benefits both partners and ongoing savings from a naturally occurring energy source. Page 1 of 3 June 3, 2009

5 6/3/09 Council Memo re: EECBG Attachment 3 6. Partnership with Idaho Power for Residential Energy Audits & Measures: $400,000 (Public Works) This proposal will fund a full home energy audit and the direct installation of low cost energy-saving measures in nearly 700 homes over the course of 18 months. Energy-saving measures will include installation of compact fluorescent light bulbs, lowering thermostat temperature on water heaters and wrapping unit and pipes, changing furnace filters and mastic sealing the heating unit. The home audit will qualify residents for further weatherization programs offered through Idaho Power and the City of Boise. Idaho Power has agreed to contribute $5,000 to this project and notes the value in running this program through the company s existing program delivery infrastructure, both in decreasing length of the startup phase and providing expertise in implementation and evaluation. This program will save an estimated 513,975 kwh/yr of electricity, and cut approximately 5,612 therms per year in natural gas consumption for program participants. 7. LED Streetlights: $446,300 (Public Works) Convert approximately 725 historical, 150 watt, high pressure sodium (HPS) street lights to light emitting diode (LED) technology. The street lights planned for conversion are located in the downtown area generally between 4 th. and 12 th streets from the River to State streets as well as on Capitol Blvd north of University Drive and around the Ada County Courthouse. These 725 historical streetlights represent about half of the total number of historical streetlights. The project provides long term ongoing energy savings and reduces operation and maintenance costs due to bulb life being approximately two times longer. Conversion to LED lighting technology is estimated to achieve 50% to 60% electricity savings for a total savings of approximately 365,000 KW-Hr per year. 8. Energy Retrofit Revolving Loan Fund: $400,000 (Housing & Community Development) This project would utilize HCD s existing Rehabilitation management processes, staff and services to finance and deliver energy efficiency upgrades (e.g. mechanical systems and structural efficiency improvements) and incentives to more Boise families. Overall Project Cost: Direct Energy Loans $300,000 Administration $12,000 Project Delivery (construction) $38,000 Leveraged CDBG $100,000 BUDGET: $450,000 This program anticipates 14 loans per year, at average loan amount of $7,000. The program will be designed so that 51% of the loans will target Boise residents within 80% of the average area median income (AMI) range. The amount of leveraged CDBG funds will depend on the previous year's roll-over monies and new funding allocations. The current rehabilitation program has a current operating budget of $900,000. This includes $300,000 in CDBG Program Income and $200,000 (new) program year allocation. $350,000 is from the new program year's HOME allocated amount, with $50,000 from HOME program income. Program income from loan repayments will be re-invested in program activities. Households that use these loans will need to agree to have their energy usage recorded 12 months prior and 12 months into program. Page 2 of 3 June 3, 2009

6 6/3/09 Council Memo re: EECBG Attachment 3 9. Neighborwoods: $18,100 (Parks & Recreation) The Neighborwoods Initiative would offer trees to City property owners for planting on private property adjacent to public streets. Parks & Rec would approve planting sites to assure the appropriateness of the location on citizens' property and if desired, for a fee, plant the tree. The requested funding would be used to purchase and market about 250 trees to neighborhoods previously underserved by Boise's current street tree program. The trees would be good quality, 1.5-inch caliper, and restricted to species allowed in the City's Tree Selection Guide. According to the 2007 City of Boise Municipal Forest Resource Analysis, the City s existing street tree population provides an annual average of $14.26 per tree in energy savings and efficiencies. Boise street trees provide a net air quality benefit, atmospheric CO2, reduce ozone, nitrogen oxide, PM10 and sulfur dioxide through both deposition and avoidance. 10. Solar Panels with Net Metering or Hot Water Heating: $64,600 (Public Works) This project would purchase and install net metered solar panels, rooftop and/or ground-mounted, on City property, as a permanent, renewable energy source and replacement for fossil fuel-generated electricity. Recommended funding would produce about 7 kw of electricity. The project will provide income from the net metering application or use the collected energy for on-site hot water heating. Net metering allows electricity generated by the panels that isn't used by the City to go onto the grid. The value of that energy is subtracted from City s electricity bill. The best facility location for solar panels and use of solar power will be determined. Page 3 of 3 June 3, 2009

7 6/3/09 Council Memo re: EECBG Attachment 4 City of Boise EECBG Selection Criteria Amount $ Kwh/YR Saved CO2E CO2E/ Grant Grant PN Recommended Budget Grant * or Created Kwh/Bud$ Tons/YR $1000 Bud Cumm. Variance Savings 1 Parks & Rec Facilities Lighting 10,700 5,300 55, ,300 2,033,900 2,755 2 West Boise WWTF 2,500, ,200 5,913, , ,500 1,603, ,170 3 Fire Stations Lighting 54,100 43, , ,200 1,560,000 7,800 4 Adopt 2009 Energy Code *** (NN,C) 21,000 21,000 39, ,200 1,539,000 8,005 5 Residential Energy Audits with Idaho Power (C) 400, , , ,110, ,000 60,499 6 City-State Geothermal Intertie 370, , , ,200 1,329,000 18,748 7 LED Street Lights (NN) 446, , , ,556, ,700 15,513 8 Neighborwoods ** (C) 18,100 18,100 10, ,974,600 64, Energy Efficiency Revolving Loan Fund 500, , , ,956,500 82,700 34, Solar Panels (7KW) 64,600 64,600 15, ,039, ,424 * Includes 5% Administrative Expenses ** Kwh Saved is based on Mature Trees (25 yrs out) *** Residential Only (C) Direct Community Benefits (NN) No NEPA Required Recommendation

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