CITY OF SANTA ROSA CITY COUNCIL MEMORANDUM OF UNDERSTANDING IN SUPPORT OF THE RETROFIT BAY AREA PROGRAM COORDINATOR, UTILTIIES DEPARTMENT

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1 Agenda Item # 10.1 For Council Meeting of: November 16, 2010 CITY OF SANTA ROSA CITY COUNCIL TO: SUBJECT: STAFF PRESENTER: MAYOR AND CITY COUNCIL MEMORANDUM OF UNDERSTANDING IN SUPPORT OF THE RETROFIT BAY AREA PROGRAM COLIN CLOSE, RESEARCH AND PROGRAM COORDINATOR, UTILTIIES DEPARTMENT AGENDA ACTION: ADOPTION OF RESOLUTION ISSUE(S) Should the City Council authorize the City Manager to sign the Memorandum of Understanding Between the Sonoma County Regional Climate Protection Authority and the City of Santa Rosa in Support of the Retrofit Bay Area: Comprehensive Residential Building Retrofit Program? COUNCIL GOALS/STRATEGIES Council Goal No. 4 seeks to Sustain City leadership in environmental initiatives and make an impact on greenhouse gas reduction strategies. BACKGROUND 1. Local governments in all nine Bay Area counties are working together to create the Retrofit Bay Area: Comprehensive Residential Building Retrofit Program (Program) to promote regional consistency, achieve economies of scale, and maximize quantified energy, water and carbon emissions reductions. 2. To ensure the long term success of the Program, the Association of Bay Area Governments (ABAG) applied for a State Energy Program (SEP) grant in the amount of $1,194,941. The grant was awarded and ABAG authorized the Sonoma County Regional Climate Protection Authority to administer the grant. 3. Program elements include program standards, workforce training, marketing and outreach to attain high participation, and quality assurance to protect customers and reduce local government liability. The Program will increase green jobs, enhance energy efficiency and deployment of renewable energy technologies, promote economic activity, and reduce greenhouse gas emissions.

2 MOU in Support of Retrofit Bay Area Program Page 2 4. Through participation in the Program, the City of Santa Rosa will help guide its development and implementation, ensure its success, and create lasting market and behavioral changes resulting in the increased adoption of energy efficiency improvements and distributed generation of renewable energy sources for the property owners of our jurisdiction. ANALYSIS 1. The Memorandum of Understanding documents the City s contribution to the Program as leveraging the existing service capacity of City programs and efforts. RECOMMENDATION It is recommended by the Utilities Department that the Council authorize the City Manager to sign the Memorandum of Understanding Between the Sonoma County Regional Climate Protection Authority and the City of Santa Rosa in Support of the Retrofit Bay Area: Comprehensive Residential Building Retrofit Program. Author: Colin Close Attachments: Memorandum of Understanding between the Sonoma County Regional Climate Protection Authority and the City of Santa Rosa in Support of the Retrofit Bay Area: Comprehensive Residential Building Retrofit Program

3 MEMORANDUM OF UNDERSTANDING BETWEEN THE SONOMA COUNTY REGIONAL CLIMATE PROTECTION AUTHORITY AND THE CITY OF SANTA ROSA IN SUPPORT OF THE RETROFIT BAY AREA: COMPREHENSIVE RESIDENTIAL BUILDING RETROFIT PROGRAM The Sonoma County Regional Climate Protection Authority (Local Lead) and the City of Santa Rosa (Partner Agency) are entering into this Memorandum of Understanding (MOU) to support the Retrofit Bay Area: Comprehensive Residential Building Retrofit Program (Program) sponsored by the Association of Bay Area Governments (ABAG) and funded under the federal American Reinvestment and Recovery Act (ARRA) State Energy Program (SEP), contract number (Funding Agreement), between the California Energy Resources Conservation and Development Commission (CEC) and ABAG. RECITALS A. The Program includes the commitment of Leveraged Funds, described in the aforementioned Funding Agreement between CEC and ABAG as follows: Retrofit Bay Area will leverage a diverse range of funds, including limited-term opportunities such as Energy Efficiency and Conservation Block Grant (EECBG) formula grant funds, State Energy Program (SEP) 401 funds, California Clean Energy Workforce Training Grants, foundation funding, and in-kind staff time and resources. More importantly, Retrofit Bay Area will leverage potential long-term sources to maximize sustainability, including utility incentives and private investment. B. Local Lead is a subawardee under the Funding Agreement and, as such, is required to document its access to and use of Leveraged Funds. C. This MOU is being requested by Local Lead to fulfill the requirement described in section B above for the Partner Agency s Energy Efficiency and Conservation Block Grant, Water Use Efficiency, and Clean Energy Advocate Programs. D. Local Lead will use the resources described in this MOU to support the Program in accordance with the terms of the Funding Agreement and its subaward agreement with ABAG (contract number ). E. This MOU automatically terminates upon completion or termination of the Program, whichever is earlier. The signatories to this MOU agree as follow: Page 1 of 5

4 1. The Partner Agency is familiar with the Retrofit Bay Area: Comprehensive Residential Building Retrofit Program (Program) sponsored by the Association of Bay Area Governments (ABAG) and funded under ABAG Comprehensive Residential Energy Retrofits/contract number (Funding Agreement) between the California Energy Commission Energy Resources Conservation and Development Commission (CEC) and ABAG. 2. The Local Lead is implementing in the County of Sonoma, its portion of the Program. 3. The Partner Agency is providing Leveraged Funds in support of the Program as follows: A. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT (EECBG) PROGRAM (1) Type of Leveraged Fund: The EECBG program administered by the U.S. Department of Energy supports the implementation of energy efficiency and conservation strategies to reduce fossil fuel emissions created as a result of activities within the jurisdictions of eligible entities, to reduce total energy use, and to improve energy efficiency in the transportation, building, and other appropriate sectors. Pursuant to the agreement between Partner Agency and Local Lead dated April 21, 2010, the Partner Agency dedicated ten percent of its 2009 EECBG allocation to the development of the Local Lead s building retrofit program, which is designed to reach local greenhouse gas reductions goals for the building sector. (2) Value of Leveraged Fund: $150,950 (3) Contribution to Program Success: The Local Lead states that the Partner Agency s EECBG program was an early funder for the Local Lead s building retrofit program, which enabled the Local Lead and its consultants to develop an energy-upgrade market transformation program design to leverage local financing partners and state investor-owned-utility whole-house incentive partners. The Local Lead further states that the Partner Agency s early funding was critical to developing the core strategies and market structures that formed the basis for the new statewide program, entitled Energy Upgrade California. In addition, the EECBG funds assisted in obtaining additional grant monies through the California State Energy Program and U.S. Department of Energy s Better Building Program, which expanded the Local Lead s program budget to nearly $3 million. (4) Workforce Development: The Local Lead states that the Partner Agency s early funding facilitated initial work on contractor recruitment events, a workforce handbook with local training and scholarship information, workforce job gap analysis, and a workforce development plan all of which provide tools for local contractors to obtain the training and certifications they need to enter the building performance industry and participate in the market transformation. Page 2 of 5

5 (5) Coordination: The Local Lead and Partner Agency will cooperate in consumer education, stakeholder outreach, and marketing activities as the Energy Upgrade California program opens to the public, as well as leverage two additional Partner Agency programs: Clean Energy Advocate and Water Use Efficiency (formerly Water Conservation). The Partner Agency is a member of the Local Lead s Energy Upgrade Advisory Committee, which has been assisting with program development since February The Local Lead and the Partner Agency are in continual communication to identify opportunities to partner and leverage existing resources and opportunities for new resources. B. WATER USE EFFICIENCY PROGRAM (1) Type of Leveraged Fund: The Partner Agency Water Use Efficiency Program provides a range of rebates and incentives to encourage water conservation for singlefamily and multi-family properties. The water use efficiency program was established in the late 1970s, is implemented by a staff of five, and is funded by utility rates and new development fees. (2) Value of Leveraged Fund: $750,000 (residential water use efficiency programs only) (3) Contribution to Program Success: The Partner Agency s Water Use Efficiency Program garners an annual 1.4 billion gallon reduction in water use within the Partner Agency s service area. Over the past thirty years, the Santa Rosa program has established proven techniques for achieving water conservation results. By encouraging the inclusion of these water conservation offers, the Local Lead states it can improve the overall energy reduction and water conservation impact of Energy Upgrade California in Sonoma County (Energy Upgrade) program projects. Local rebates and incentives such as these will be bundled for each Energy Upgrade project to provide the property owner with maximum cost-effectiveness and resource conservation. (4) Workforce Development: The Local Lead states that the impact on workforce development will be in the expansion of individual project scopes to include water conservation measures incentivized by the Partner Agency Water Use Efficiency Program and any impact that may have on contractor staffing and business growth. (5) Coordination: The Local Lead states it will ensure that local Energy Upgrade California contractors are aware of water conservation offers and encourage their inclusion in project scopes of work. Information on these cost-savings offers will be provided through a rebate/incentive bundling process that allows the contractor to determine all the available cost-cutting offers that can reduce the size of the project financing amount. Page 3 of 5

6 C. CLEAN ENERGY ADVOCATE PROGRAM (1) Type of Leveraged Fund: The Partner Agency Clean Energy Advocate (CEA) Program is funded by a Solar America Cities grant and is conducting a pilot project within Santa Rosa and Sonoma County that will provide an independent noncommercial advocate to assist property owners in navigating the renewable energy, energy efficiency, and water conservation retrofit process. (2) Value of Leveraged Fund: $667,000 (3) Contribution to Program Success: The Partner Agency program is designed to help property owners interested in making efficiency and renewable upgrades to obtain information on the specific requirements of their property, the multiple financing options available, and the selection of commercial vendors who may have competing interests. The overall goals of the CEA pilot project are (1) to provide an independent advocate to assist property owners in project planning, financing, and implementation; (2) to increase the number of property owners in Sonoma County who institute efficiency upgrades and install solar photovoltaic or solar thermal systems; (3) to significantly improve the outcome and experience of property owners who institute efficiency upgrades and install solar systems; (4) to increase employment in the efficiency and renewable energy sectors of the County; and (5) to help Sonoma County cities and Sonoma County reduce energy use and meet their greenhouse gas reduction targets. (4) Workforce Development: The Partner Agency anticipates that the CEA pilot project will contribute to job creation by increasing the participation of property owners in efficiency and renewable projects. (5) Coordination: The Partner Agency will cooperate with the Local Lead s Energy Upgrade California in Sonoma County (Energy Upgrade) program in an effort to co-brand and leverage marketing/outreach efforts of the two programs, including marketing collateral materials and Web resources. In addition, the Partner Agency anticipates that it will be able to rely on the contractor standards and quality assurance protocols of the Energy Upgrade program and hopes to refer efficiency clients to contractors in the Energy Upgrade program. 4. The Partner Agency will notify the Local Lead within 10 days in writing if the Partner Agency decides to limit, suspend, or cease the provision of any portion of the Leveraged Funds. Page 4 of 5

7 5. Authorized Representatives of the Local Lead and Partner Agency are: Organization (Lead Agency): Sonoma County Regional Climate Protection Authority Address: 490 Mendocino Avenue, #206, Santa Rosa, California Authorized Representative: Mike Sandler, RCPA Program Manager Telephone: (707) Organization (Partner Agency): City of Santa Rosa Address: 100 Santa Rosa Avenue, Rm. 10, Santa Rosa, California Authorized Representative: Kathleen Millison, City Manager Telephone: (707) Sonoma County Regional Climate Protection Authority Dated: Mike Sandler, Climate Protection Program Manager City of Santa Rosa Dated: Kathleen Millison, City Manager Page 5 of 5

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