Municipal Energy Efficiency Best Practices for Making Projects Happen

Implementing Climate Action Plans Garrett Wong City of Santa Monica Central Coast Sustainability Summit October 17, 2016

Climate Change & California AB 1532 Greenhouse Gas Reduction Fund establishes GGRF for State and local GHG- reducing projects ZEV Action Plan establishes roadmap for 1.5M ZEV by 2025 SB 350 Clean Energy & Pollution Reduction Act establishes 50% RPS and 50% energy efficiency from existing buildings goals by 2030 (AB 802) AB 32 Global Warming Solutions Act required ARB to reduce GHG to 1990 levels by 2020 SB 375 Sustainable Communities & Climate Protection Act required MPOs to develop SCS for reducing GHG from vehicle travel 2007 2011 2016 2006 2008 2012 2015 SB 97 CEQA requires OPR to develop guidelines for GHG impacts and mitigation SB 32 Global Warming Solutions Act requires ARB to reduce GHG to 40% below 1990 levels by 2030 SB X1-2 required IOUs to achieve 33% in the Renewable Portfolio Standard by 2020 City of Santa Monica | Office of Sustainability and the Environment

Climate Change & Local Governments Many local governments had adopted local goals and targets for reducing emissions independently of State Local governments are on the front lines of implementation, community outreach & engagement, tracking & reporting All climate change impacts will be local & must be dealt with locally City of Santa Monica | Office of Sustainability and the Environment

Climate Change & Santa Monica 2006 – 15% reduction below 1990 levels by 2015 2013 – Adopted 15x15 Climate Action Plan 2016 – Concluded implementation of 15x15 CAP, prepared Final Report and initiated new plan development City of Santa Monica | Office of Sustainability and the Environment

GHG Trend & Forecast 14% below 1990 levels 1990 baseline Projected emissions 15% below 1990 14% below 1990 levels City of Santa Monica | Office of Sustainability and the Environment

Climate Action Planning City of Santa Monica | Office of Sustainability and the Environment

GHG 2015 Inventory 20% below 1990 levels 14% below 1990 levels 1990 baseline Projected emissions 15% below 1990 20% below 1990 20% below 1990 levels 14% below 1990 levels City of Santa Monica | Office of Sustainability and the Environment

Estimated vs. Actual Reductions City of Santa Monica | Office of Sustainability and the Environment

GHG Trend Comparison City of Santa Monica | Office of Sustainability and the Environment

15x15 CAP Highlights Building Energy Efficiency: Over 18 MWh and 40,000 therms saved Local Renewable Energy: Locally installed solar surpasses 5 MW Mobility Matters: Successful launch of Breeze Bike Share; Focused TOD-housing Better Biking: 105 miles of bike routes, lanes & sharrows Water Efficiency: Saved 2.8 MGD (20 gal/person/day) Municipal Operations: 1.4 MWh and 36,641 therms saved Renewable Fuels: Big Blue Bus reduces emissions 62% with landfill gas City of Santa Monica | Office of Sustainability and the Environment

Growth Without Emissions 15x15 CAP Highlights Since 1990, emissions have declined, while population and economy have grown. City of Santa Monica | Office of Sustainability and the Environment

The Next Climate Action & Adaptation Plan Objectives Achieve carbon neutrality by 2050 or sooner Prepare community for climate change impacts Approach Engage community in plan development Address environmental equity Embrace innovation & support local projects Develop Community Action Toolkit City of Santa Monica | Office of Sustainability and the Environment

The Next Climate Action & Adaptation Plan Engaging the Community for Climate Action The Next Climate Action & Adaptation Plan For more information, visit www.sustainablesm.org/climate. City of Santa Monica | Office of Sustainability and the Environment

The Next Climate Action & Adaptation Plan Thank you! The Next Climate Action & Adaptation Plan sustainablesm.org/climate garrett.wong@smgov.net City of Santa Monica | Office of Sustainability and the Environment

Herding Cats Central Coast Sustainability Summit October 17, 2016 Jon Griesser, Energy and Climate Programs Supervisor County of San Luis Obispo Central Coast Sustainability Summit October 17, 2016

What is SLO Energy Watch? Cities & Special Districts

What is an Energy Management Program? Inventory Energy Use Set Goals & Targets Perform On-Site Assessment Select & Finance Projects Implement Projects Monitor & Measure Through the Energy Management Program, our goal is to: Reduce energy use and cost Finance and implement projects Improve operations Track building performance Energy Management Our programs serving local government agencies all share the same “action planning” process and goals.

What is CivicSpark? Joint effort by Local Government Commission and Office of Planning & Research Initiative of AmeriCorps unique to California CivicSpark Mission: to build capacity for local governments to address climate change

Key Implementation Challenges Fragmented understanding of energy use, cost, and demand How much energy do we use? Where do we use the most energy? Lack of Capacity, Resources, and Knowledge To identify, select, finance, and implement cost effective energy efficiency projects To implement climate action plan measures and track progress over time .

Best Practice: Aggregating Customers Herding Cats! Worked closely with utility staff to find innovative solutions to: Serve rural customers with small loads Identify stranded savings Cue up cost effective projects

Large Integrated Audit Coordination Nine participating Special Districts Approximately: 20 on-site energy assessments 35 staff members and consultants 9 final reports 27 meetings 15 presentations Hundreds of emails and phone calls

Large Integrated Audit Energy Efficiency Demand Response Pump water to tanks prior to summer peak period LIA Projects Load Management Install premium efficiency motors, replace light fixtures, install DO sensors, replace/optimize pumps Pump water to tanks, dim lighting, and overcool office prior to a DR event Install Solar PV System to offset energy use Distributed Generation

Large Integrated Audit Results Energy Management

Los Osos: Freshwater Pumping Upgrade Current CSD Projects Los Osos: Freshwater Pumping Upgrade San Miguel: Wastewater Aeration Upgrades Energy Management

Best Practice: Inter-Agency Collaboration CivicSpark Program Collaboration between SLO Energy Watch, APCD, LGC, PG&E, SoCalGas, and 7 Cities Year 1: Addressed many measures and primarily focused on education and outreach Year 2 : Addressed only EE measures common across all city CAPs and focused on baselining and benchmarking municipal facilities

Baselining and Benchmarking Inventory buildings and utility infrastructure Baseline and benchmark energy use and cost Report with trend analysis and recommendations Set Goals & Targets

CivicSpark and MEMP Implementation Building Facility Energy Use Energy Management

Best Practice Takeaways Aggregate smaller customers to meet program participation criteria and create economies of scale Foster regional inter-agency collaboration that benefits everyone Work closely with LGPs and IOUs for streamlined EE program and project implementation Add staff capacity through CivicSpark and similar programs

Thank You - Regional collaborations can improve programs and increase funding opportunities for local EE programs - Working with IOU’s and existing EE programs can help streamline project implementation - Working with CivicSpark Fellows can help increase local city staff capacity and support implementation of local Climate Action Plans Jon Griesser, Energy and Climate Programs Supervisor County of San Luis Obispo Email: jgriesser@co.slo.ca.us

Climate Action Plans – Regionally Relevant and Actionable Climate on The Move Climate Action Plans – Regionally Relevant and Actionable

Who is VCREA Nine-Member Board City of Fillmore Ventura Unified School District City of Oxnard City of Camarillo City of Thousand Oaks City of Moorpark City of Santa Paula City of Ojai City of Ventura City of Port Hueneme County of Ventura City of Simi Valley Ventura County Community College District Ventura Regional Sanitation District Nine-Member Board

Climate Action Plan Uniform Reports All Cities have the same report chapters Community Inventory Government Operations Inventory Community Forecast and Reduction Targets Government Operations Forecast and Reduction Targets Progress Since 2010 Community Inventory Residential and Non Residential On Road Transportation Solid Waste and Water Wastewater Treatment Avoided Emissions Participation in EE Programs and Rooftop Solar

VCREA Countywide Report Countywide GHG inventory Roll up all information into one report Still keep same chapters as individual cities Easier to update Easier to transition to any new staff Can be used by different groups

Results

Sea Level Rise: Location… 100 cm = 40 inches 140 cm = 55 inches **

…Location Location

Not Typical CAP or EAP Component Temperatures in California will rise significantly Increased wildfire risk There will be impacts on public health and well-being The supply of water throughout the State will be impacted Increased demand for cooling in the summertime Accelerated sea level rise and coastal flooding Agriculture is also vulnerable Road show. Met with all of city staff varies from PWA’s to City managers, fire chief

2020 and Beyond Make relevant to County/City/Community General Plan Updates – Sustainability Component Integrated Regional Water Management - Sustainability Component Air Pollution Control District - Air Quality Management Plan Transportation Commission – Transportation Plans Agricultural Commissioner – Crop Reports Public Health – At Risk Populations First Responders - OES

Thanks!

Financing Energy Efforts Alelia Parenteau Energy Analyst, City of Santa Barbara

Introduction You’ve measured your organization’s energy usage and identified your opportunities You’ve researched innovative ways to increase energy efficiency and renewable infrastructure You’ve strategized on how to implement the “Plan”

Now you have to PAY for it!

$$$$ $$ $0 What are my options? Steal Beg Borrow Leverage One-time Capital Allocation Increased Budget CEC Loans Municipal Bonds On-Bill Financing Incentives Strategic Planning Funds Direct Install Program Revolving Fund Power Purchase Agmts $$$$ $$ $0

ON-BILL FINANCING On-bill financing (OBF) is a Utility financing program that offers 0%-interest loans for energy efficiency (EE) improvements. allows utility customers to invest in EE improvements and repay the funds through additional charges on utility bills. OBF loans are “energy-cost-neutral,” energy savings are sufficient to cover the monthly payments for the financing $250,000 cap per service account with one-time $1,000,000 exception (STREETLIGHTS!)

These savings are the equivalent of powering about 150 local homes! How we’ve used it Project Project Cost Utility Incentive OBF Loan Amt Monthly Payment Loan term Savings LED Pool Lights $11,706 $1,690 $10,016 $193 4.3 yrs 12,704 kWh Pool Boiler $69,735 $7,202 $53,033 $442 10 yrs 7,000 Therms WWTP Outdoor & High Bay Lights $109,904 $37,167 $72,737 $1,836 3.3 273,848 kWh Parking Garage Exhaust Fans $34,622 $3,447 $31,175 $240 5 yrs 22,767 kWh Campus Lights 59,734 4,696 $41,628 $347 27,621 kWh Parking Garage LED Lights (in process) $100,100 $22,184 $77,916 $1,500 121,184 kWh TOTAL $385,801 $217,913 $286,505 $4,558 6.1 Avg 458,124 kWh ($64,140/year) These savings are the equivalent of powering about 150 local homes!

Success Story Los Baños Pool Lights BEFORE AFTER Replaced 24 500w incandescent lights in the pool with 70w LED lights Results: 12,000 kWh saved annually $2,317 saved annually Improved light quality Reduced maintenance costs Capital-neutral

Power Purchase Agreements Advantages Disadvantages No up-front capital Long-term set pricing No ongoing maintenance Performance-based (pay only for what is produced) Maximizes available incentives (tax credits, accelerated depreciation) Over time more expensive than cash Take or pay What if energy costs go down (?!?!?) Site Access Escalator

Success Story El Estero Cogeneration Installed 650kW engine to make electricity out of methane Results: 4,500,000 kWh produced Annually Supplies 60% of the electrical load $148k in annual savings No more flare!

STRATEGIC PLANNING FUNDS SCE works with the public sector on policies, codes, and plans to help promote the goals outlined in the California Long-Term Energy Efficiency Strategic Plan. $29 million in Strategic Plan work has been accomplished by local governments, including: Utility management systems Energy Action Plans (EAPs) EE chapters of Climate Action Plans Building code trainings, and Reach codes

Energy Revolving Fund Utility Management Fund (UMF) Provides the City with a fiscal planning tool for centralizing the management of the City’s General Fund energy accounts and for saving on energy costs. Offers a mechanism to leverage savings from energy efficiency projects to fund additional energy efficiency projects and to save even more money for the City.

A Purchased Utilities Account is created for the payment of General Fund electrical and gas expenditures. Funded through monthly allocated charges to General Fund departments. Savings accumulate in the fund when energy cost savings are realized. Projects are selected based on simple payback and priority Savings are tracked, and pay the fund back during the allotted payback period. Additional savings are returned to General Fund How it Works

How are we starting off? $25,000 seed money Quick payback projects – lighting Rate changes Addressing behavioral issues How are we starting off?

RESULTS 22 Lighting Improvement Projects 15 Pump Projects 13 HVAC Controls Projects 520 kW Solar $430,725 in ongoing Annual Conservation Savings 4 Million Annual kWh Savings Improved operations/ maintenance (& offsets differed maintenance costs)

QUESTIONS? Garrett Wong: garrett.wong@smgov.net Jon Griesser: jgriesser@co.slo.ca.us Alejandra Tellez: Alejandra.Tellez@ventura.org Alelia Parenteau: Aparenteau@SantaBarbaraCA.gov