HomeMy WebLinkAboutMemo - Read Before Packet - 11/6/2018 - Memorandum From John Phelan And Sean Carpenter Re: Leadership Planning Team Request - Bloomberg Award Next Actions (Budget Item #16)Utilities
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DATE: November 5, 2018
TO: Mayor Troxell and Councilmembers
FROM: John Phelan, Senior Manager, Energy Services
Sean Carpenter, Climate Economy Advisor
THROUGH: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Leadership Planning Team Request – Bloomberg Award Next Actions
This memo is in response to the November 5 Leadership Planning Team request on the goals of
the $1M Bloomberg Award and how this fits with the 2019-2020 budget specifically with; what
the award money will be used for, the amount of carbon reduction that will be achieved, the
impact this has towards achieving our energy goals, and why a separate appropriation is needed.
Summary:
The $1M Bloomberg prize award announced last week will be used in three ways.
1. Approximately $600,000 will be added to the EPIC
1
loan program capital to be made
available for home efficiency upgrades.
2. Approximately $300,000 will be used to establish a research effort in partnership with
Colorado State University.
3. The remaining funds are anticipated to be used to support programmatic administration.
City staff has not yet been contacted for next steps regarding the necessary financial agreement
between the City and Bloomberg Philanthropies, as the award launches a three-year performance
period with Bloomberg Philanthropies. A separate appropriation will be required to finalize the
details of the Bloomberg agreement and any necessary sub-agreements with Colorado State
University (CSU).
1 EPIC is not an acronym
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Regarding the carbon impact of the Bloomberg award, both the direct and indirect benefits can
be estimated. These are discussed below.
1. Staff had identified the direct impact of the $1M award will be approximately $600,000
towards the EPIC loan capital for the on-bill financing on Utilities customer projects. The
remainder is allocated for establishing the CSU research effort to monitor indoor air
quality and health impacts, with a small amount for administrative program support.
Thus, based on average project costs, and average annual carbon savings of efficiency
projects, staff anticipates the $600,000 will support 67 efficiency projects, saving about
150 metric tons of carbon annually. However, this is a limited view of the award impact
because the carbon-savings impacts of these efficiency projects will continue as an
ongoing energy and water efficiency revolving loan fund for potentially decades (up to
the life of the measures) to fund additional energy efficiency projects for single family
homes, rental properties, and small businesses in Fort Collins.
2. The anticipated three-year program indirect impact is based on the three-year
performance period with Bloomberg Philanthropies. The award funding is one part of a
larger effort to establish a revolving “on bill financing” loan fund with third party capital,
including Bloomberg, the Colorado Energy Office and other sources. From a
programmatic perspective, staff would expect the EPIC loan program to add to our
Efficiency Works Homes results in this time. Based on a draft scenario this will result in
about 600 new projects savings 1,350 metric tons of carbon annually. The Bloomberg
project and award are directly linked to the ability to develop the EPIC loan program and
raise the necessary $5.4M in capital. While this is less than one tenth of one percent of
our 2020 inventory, the establishment of an ongoing revolving loan fund will, over time,
contribute a substantive level of carbon reduction while also providing health and
wellbeing and many other community benefits, that will be quantified and presented to
Council once the three-year performance period has been finalized with Bloomberg
Philanthropies. Based on the timing of the $100,000 “Champion City” award that Fort
Collins won in February of this year, the first round of the Bloomberg competition, we
expect to have those details from Bloomberg within 60 days.
cc: Lisa Rosintoski, Deputy Director, Utilities Customer Connections
Lucinda Smith, Interim Chief Sustainability Officer
Josh Birks, Economic Health and Redevelopment Director
DocuSign Envelope ID: 3449AB3A-2672-48E0-A6EF-D7490CB46722