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HomeMy WebLinkAboutMemo - Read Before Packet - 6/21/2016 - Memorandum From Lindsay Ex, John Phelan And Susie Gordon Re: Read-Before Memo: Item 10 - Appropriation For Cap Implementation1 CAP – Appropriation for Immediate Actions Jeff Mihelich, Kevin Gertig, Jackie Kozak Thiel, Mike Beckstead, Lucinda Smith, Lindsay Ex June 21, 2016 Ordinance First Reading 2 • Current Progress  April - Four initiatives approved for funding  Summer – vetting of initiatives and development of messaging  Q4 – Council Work Session to review 2020 Plan • Tonight – update on two remaining initiatives and one appropriation  Energy Efficiency  Solar Incentives and Rebates  Municipal Green Waste (Composting) Sites Draft Roadmap to 2020 *Reductions are estimates and rounded to the nearest thousand 3 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 CAP Journey: Progress 4 20% Reduction 80% Reduction Carbon Neutral Inventory Results Forecast 2015 Inventory: Emissions Goal 9% below 2005 CO2 Tons Energy Efficiency 5 Up to $1.46M Needed 2020 Impact: 230,000 CO2e Tons (46%) • Good news –Business energy efficiency incentives are nearly fully committed for 2016  Implications – customer projects will be waitlisted for the remainder of 2016 • Funding Needs:  1.46M (forecasted) – up to $1.37M for business rebates & $0.09M ($90,000) for Efficiency Works Neighborhoods Pilot in Q4 Energy Efficiency 6 $118.1 ($56.9) $3.1 $2.1 $123.1 $3.1 $2.2 $136.8 $6.9 $8.2 $139.9 $9.7 $7.1 ($100.0) ($50.0) $0.0 $50.0 $100.0 $150.0 $ Millions 501 L&P 2017-18 Budget Energy Efficiency 7 Energy Efficiency 8 • Total Budget $8.5-$10M, + PRPA & Loans • Historical underspend • 5 programs within Energy Efficiency • Business Rebates – commitments of $1.8M, spent $.7M as of June 8th . • Other programs continue ($ 000's) 2014 2015 2016 Energy Programs Budget Actual Budget Actual Budget Purchased Power Renewables $1,833 $1,824 $1,824 $1,893 $1,824 Community Renewables $915 $283 $1,414 $1,211 $750 FC Solar Program $1,000 $118 $1,029 $356 $1,000 Demand Response $170 $130 $1,307 $560 $802 Energy Efficiency $4,542 $4,285 $4,429 $4,283 $4,316 Total $8,460 $6,640 $10,003 $8,303 $8,692 Energy Efficiency Includes Business Rebates Consumer Product Rebates Home Energy Reports Residential Rebates Residential Lighting Rebates PRPA Contributes $1,0M to Business Rebates (in addition to numbers above) Utilities On-Bill Financing Program - $1.6M committed to loans Recommendation Rational 9 • CAP Funding Assumptions: • Majority private capital • L&P requests will need prioritization • Budget for Outcomes • City process for prioritization • All resources and needs assessed • First round BFO identified funding gap • O&M & Capital funding gap before enhancements considered • 2017/18 business rebate enhancement offers of $950k included in the discussion • Recommendation based on active BFO discussions in process • Funding 2016 without resolving 2017/18 will lead to similar discussion later • Need a long term funding level balancing all needs and requirements of L&P • BFO provides a holistic review of all priorities • Recommendation may have been different if we were 9 months out on BFO Solar Incentives and Rebates 10 Up to $350K 2020 Impact: 9,000 CO2e Tons (1.8%) • Good news – Existing program funds can be used in 2016 to support this program • Funding Needs:  No new appropriations needed  Will shift uncommitted funds in the Solar Power Purchase Program and Community Solar Program to meet these needs Municipal Green Waste (Composting) Site 11 $85,000 (One-Time) 2020 Impact: 100 CO2e Tons (1.9% of Municipal Pathway) • Good news – Through vetting, costs have decreased from ~$185K and one site will be installed • Funding Needs:  $85,000- One-time funding for capital equipment, staff training, and site preparation Municipal Green Waste (Composting) Site 12 Why this project? • Lead by Example • Restores former City operation • Diverts waste from the landfill and saves City dollars • Utilizes existing funding source: Waste Innovation Fund Initiatives Summary & 2016 Appropriation Request 13 Item Initiative Funding Recommendation 1 Energy Efficiency Postpone funding decision for 60-90 days 2 Solar Incentives and Rebates No new appropriation needed in 2016 3 Municipal Green Waste (Composting) Site $85,000 from Waste Innovation Fund Reserves* Total Request $85,000 *Current Balance of Waste Innovation Fund - ~$180K Short-Term Efficiency Funding • Supplemental funding for 60-90 days (continue overall) • Based on historical results and activity year to date - $250K/month • Absent additional funding • Unpredictable business environment (customers and contractors) • Potential missed opportunity for 3000 – 4000 megawatt-hours of savings • Approximately 15% of Energy Policy 2016 target • Approximately 1% of 2020 CAP reduction target 14 Next Steps 15 • Energy Board – June 23 • Recommendation and Model Deep Dive • 2nd Reading – July 5 • Evaluate offers for the 2017-18 Budget Process • Continue to engage the public • Refine messaging 16 CAP – Appropriation for Immediate Actions Jeff Mihelich, Kevin Gertig, Jackie Kozak Thiel, Mike Beckstead, Lucinda Smith, Lindsay Ex June 21, 2016