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HomeMy WebLinkAbout2010-06-22 - AGENDA REPORTS - GREEN ENERGY GRANT AWARDS (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT Agenda Item: 7 CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presented by: June 22, 2010 Jason Crawford RECOMMENDATION FOR AWARDING OF GRANTS TO LOCAL BUSINESSES THROUGH THE GREEN ENERGY INCENTIVE PROGRAM City Manager's Office RECOMMENDED ACTION City Council approve grant awards for the Green Energy Incentive Program in an amount not to exceed $109,936.16 per City Manager approval. City Council authorize City Manager or his designee to execute all documents subject to City Attorney approval. City Council direct City Manager to continue the program on a first-come, first-served basis commencing on June 28, 2010, and sunseting on November 30, 2010, or until all available funds are expended. City Council authorize City Manager or his designee to evaluate each application submitted after June 28, 2010, approve award of grants up to a maximum of $25,000 each to applicants that meet the program criteria, and execute all documents subject to City Attorney approval. BACKGROUND On March 9, 2010, the City launched the Green Energy Incentive Program and made $296,793 available for this purpose. This innovative program was created as part of the 21 -Point Business Plan for Progress, approved by City Council in April 2009. Funding for this program comes from the Energy Efficiency and Conservation Block Grant (EECBG) as outlined in the American Recovery and Reinvestment Act (ARRA). City Council approved the expenditures of the EECBG in May 2009. The Green Energy Incentive Program provided local businesses the opportunity to apply for grants up to $25,000 in order to engage in projects that would improve their sustainability through a variety of efficiency and renewable energy projects. Eligible activities included: • Incentive programs to reduce commutes by single -occupancy vehicles • Transportation programs, including the purchase of alternatively fueled vehicles • Purchase of Energy Star appliances • Source reduction and recycling programs • Solar technology installations coupled with energy efficiency • Water conservation measures - • Other documented energy savings projects, including lighting upgrades, HVAC retrofits, water control valves, window films, etc. The program was designed to be a matching program between the City and the local business, and included a shop local preference. For example, if businesses use local vendors for their projects, the City will cover 75% of the project cost up to a certain threshold and the business would be responsible for 25% of the project cost. Businesses using non -local vendors will share the project costs on 50/50 basis, with the City's portion limited to a certain threshold. This program further incentivizes participation by allowing businesses to use the incentives received by Southern California Edison and The Gas Company as the business's portion of matching funds. This significantly reduces the cost businesses would be required to invest to increase their sustainability for the long term, and saving money immediately on their energy use. Staff engaged in a broad-based marketing strategy for this program to ensure businesses were made aware of this opportunity. The following activities were conducted: • Over 6,500 postcards were sent to businesses located within the City. Post cards were also distributed at Santa Clarita Valley Chamber of Commerce, Santa Clarita Valley Industrial Association, and the Auto Dealers Association luncheons. • Emails were sent to businesses that do this type of "green" work to promote the program to their clients. • A press release was generated on March 9, 2010, that was subsequently printed on the City's website, in the Santa Clarita Valley Business Journal, and in the Santa Clarita Magazine. • A City Brief was published on March 15, 2010. • Signage relating to the program was posted on the information wall at the City Hall Permit Center. Post cards were also available at the same location. • A total of four workshops were held to discuss the program, as well as other energy related programs available to local businesses. Two workshops were held on March 18, 2010, and two workshops were help on April 26, 2010. Applications for the Green Energy Incentive Program were due on May 7, 2010. A total of five applications were received, totaling $109,936.16 in requests. Each application was reviewed .00 according to the criteria established in the grant application documents by a review team consisting of staff from the City's Economic Development and Environmental Services Divisions, The Energy Coalition, and Southern California Edison. As a result of this review process, staff recommends funding all five of the proposed projects, an outline of which is attached, pending successful negotiations between staff and applicants. Staff recommends continuing this program, beginning June 28, 2010, and ending on November 30, 2010, or until the remaining grant funds are expended, on a first-come, first-served basis. Staff will continue to outreach to local businesses making them aware of this opportunity to increase their environmental sustainability and business viability. ALTERNATIVE ACTIONS Other actions as determined by City Council. FISCAL IMPACT Funds for this expenditure are a part of the City's Energy Efficiency and Conservation Block Grant, as awarded by the United States Department of Energy, authorized by the American Reinvestment and Recovery Act. Funds are budgeted in account number 14608-5161.001 for activities related to the Green Energy Incentive Program. ATTACHMENTS Proposed Projects Fir GREEN ENERGY INCENTIVE PROGRAM RECOMMENDED GRANTEES LUNDGREN MANAGEMENT - $25,000 Lundgren Management proposes to install a new elastometric reflective roof coating and a photovoltaic solar system on their building located at 26330 Citrus Street. These two projects are expected to reduce their energy by over 7,300 kwh per year and generate over 8,991 kwh in renewable energy. This equates to an annual reduction of 308,000 pounds of greenhouse gas emissions. Lundgren Management is proposing to utilize local vendors for their project and therefore qualify for the 25/75 percent matching requirement. The project meets the energy efficiency standard required before solar is installed. TOURNEY ROAD PARTNERS, LLC - $25,000 Tourney Road Partners, LLC proposes to install a photovoltaic solar system on their building and covered parking structures located at 27441 Tourney Road. This project is expected to generate over 175,940 kwh in renewable energy per year, equating to a reduction of over 276,000 pounds of greenhouse gas emissions. Tourney Road Partners, LLC is proposing to utilize a local vendor for their project and therefore qualify for the 25/75 percent matching requirement. Staff will need to negotiate meeting the energy efficiency requirement prior to funding this request. TOYAMA AND ASSOCIATES - $9,936.16 Toyama and Associates proposes to convert a 2009 Hyundai Santa Fe to compressed natural gas (CNG) and install a CNG compressor station. This project is expected to result in an annual reduction of 4,000 pounds of greenhouse gases. Toyama and Associates is proposing to utilize non -local vendors for their project and therefore qualify for the 50/50 percent matching requirement. This project meets the reduction of greenhouse gas standards but staff will need to negotiate that the use of the vehicle is for business purposes. BESTWAY AUTO AND TRUCK RENTAL SALES AND LEASING - $25,000 Bestway Auto and Truck Rental Sales and Leasing proposes to install ten Light Emitting Diode (LED) solar powered parking lot lights at their facility located at 24076 Creekside Road to be used for after hours display lighting. This project is expected to generate over 14,000 kwh in renewable energy each year and reduce greenhouse gas emissions by over 70,000 pounds per year. Bestway Auto and Truck Rental Sales and Leasing is proposing to utilize non -local vendors for their project and therefore qualify for the 50/50 percent matching requirement. City staff needs further clarification on this project regarding energy efficiency. BLUE SKIES ENERGY - $25,000 Blue Skies Energy proposes setting up a showroom for education, sales, and distribution of energy savings and clean generation products including photovoltaic solar panels, solar water devices, Power Shave electricity conservation window films, and greensulate products and installing these technologies on their place of business. The proposal also includes securing a lease on a facility and hiring staff. Blue Skies Energy is proposing to utilize local vendors for their project and therefore qualify for the 25/75 percent matching requirement. Staff needs clarification on the location of the proposed work.