HomeMy WebLinkAboutAgenda Report - October 18, 2006 E-09ADDIIMDA ITEM „ W 01
CITY OF LOW
COUNCIL COMMUNICATION
1M
AGENDA TITLE: Adopt Msdution authorizing the City of Lodi to endorse the Carnia
Memo*ndutn of Understanding In support of the Natioml Action Plan for
Energy EftitAency (EUD)
MEETING DATE: October 18, 20M
PREPAID BY: Electric Utithy Director
RECOMWENMV ACTION: Adopt a resolution authorizing the City of Lodi to endorse the
California Memorandum of Understanding (MOU) in support of the
National Action Plan for Energy Efficiency (NAPEE).
BACKGROUND IiNFOfIMATIDN: The United States Department of Energy and the Environmental
Protection Agency are co -sponsoring the NAPEE. These two
agencies have developed a series of voluntary recommendations
and best practices for organizations across the country to promote
energy efficiency.
The key elements of the NAPEE include:
➢ recognizing energy effbency as a priority resource;
➢ rT*king a strong comn!ttment to implementing cost effective energy efficiency;
➢ p0bmotfng energy effic (ency across the nation; and
➢ in lernen1ing a proactive public communications program which highlights the benefits of energy
efficiency.
To demonstrate support for the NAPEE, a MOU has been sponsored by the California Governor's office,
the California Energy Commission, the California Public Utilities Commission, the Natural Resources
Defense Council and many of the states larger electric utilities including the Sacramento Municipal Utility
District and the Los Angeles Department of Water and Power. The MOU has also been
endorsed/executed by the Northern California Power Agency and a number of individual NCPA member
agencies.
A strong commitment to energy efficiency is no stranger to the City of Lodi, its citizens and business
owners. As a municipal organization, the City of Lodi has invested hundreds of thousands of dollars into
energy conservation efforts since 1999 -- efforts designed to conserve energy and reduce utility operating
costs. Some of the measures have included:
➢ the installation of light -emitting diode technology in traffic signals (a move that has reduced
energy consumption �y 75 percent per signalized intersection);
➢ the instal ation of high efficiency lighting at parks and recreation facilities;
APPIROVED:
Blair ' , City Manager
Adapt remAudon authorki the support of the Camon Morandum of Understanding and the
Nado Pion for Er�gy iEfftieney (EU D)
Octl@ber.48, 200i
Page 2 40 2
➢ the iraAarliilrtion of an epergy management sysism at Hutchins Street Square; and
➢ the irotaliation of oom#act fluorescent lamps and other high efficiency lighting in city -owned
facilities.
To assit the general public in achieving energy efficiency, Lodi Electric Utility launched a series of
prograrr* in early 190 desig*ed to promote and encourage energy conservation:
➢ I App9amm Reba* Program — rebates are provided for purchasing high efficiency
r0frigeraterr, dishwash#rs and clothes washers;
➢ Lo EneirW EAicie t Honer i mpraevernom Rebels Program -- rebates are provided for
purchasing and instar new air ducts, attichvell insulation, ceiling/attic fans, whole house fans,
and more;
➢ LAxN Coawrr'temial R*a% Program — rebates are provided to small businesses who pursue
dssignatad and approved energy efficiency measures;
➢
Log IIndWW adlLargrt Cusllormer 1+9ph EMciercy Rebafrr Program — rebates are provided to
Lodi's largest energyears for installing various conservation measures;
➢ ISI HVAC V"-1—nneame Test: —Lodi Electric Utility was the first Caiifomia Oft to
oi%r computer diagnostics iesitng of residential heating/cooling/ventilation systems (over 1,200
Lodi residences have been tested since the program's inception two years ago); and
➢ Lodi Energy Audit POogram -- free energy audits are provided on-line or on-site for residential
and small commercial customers. These audits are designed to promote energy efficiency, and
assist customers in reducing montMy energy consumption.
The citions of Lodi have responded to these and other energy efficiency programs in fairly dramatic
fashion. Ourthg fiscal year 2005-2006, over 3,860 Lodi homeowners and business ownerstmanagers
participalied in the various rebWelenergy conservation programs made available to them by the Electric
Utility Department. The total energy savings achieved by the efforts of Lodians this past fiscal year were
in excess of 970,0004dkmatt:hours of energy. In addition, EUD provided 34 classroom presentations on
energy donservadon and renewable energy resources to students of all ages. These numbers provide
just a gftpee of Lodi's oven corrxnitment to energy efficiency.
By way of this Count agen4 item, and Council action, the City of Lodi has the opportunity to officialy
endorsethe National Action Plan for Energy Efficiency, and more specifically, support the Ca Mo nia Il OU
pledging the Golden Staten's support of NAPEE.
Loch Ekonc UtRly respec#* reconvyiends approval of this resolution.
FISCALACT: Not applicable.
FUNaH11a: Not applicable. 6" M
Ge fte F. Morrow
Electric Utility Director
Prepared By. Rob Lochner, Mar4W, Customer Service & Programs
GFWRSLAM
AttathmWd
Attachment 1
MEMORANDUM OF UNDERSTANDING
PLEDGING THE SUPPORT OF THE STATE OF CALIFORNIA
FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY
WHEREAS,
Cost-effective energy efficiency, conservation and demand response resources are
reliable, least cost, energy resource options with proven capability for helping meet the
country's energy needs. Significant investment in cost-effective energy efficiency,
conservation and demand response resources can help to stabilize energy prices, enhance
electric system reliability, reduce pollution emissions from power plants, reduce natural
gas demand, and provide significant cost savings to customers. Despite these substantial
benefits, energy efficiency, conservation and demand response options remain critically
underutilized resources in much of the nation's overall energy portfolio;
■ Recognizing that a great portion of the country's energy efficiency potential remains
untapped, the United States Environmental Protection Agency and the United States
Department of Energy joined together to sponsor the development of a National Action
Plan for Energy Efficiency;
■ The goal of the National Action Plan for Energy Efficiency is to create a sustainable,
aggressive commitment to energy efficiency by gas and electric utilities, utility
regulators, and partner organizations to help meet the nation's energy needs;
To kick-off the development of the National Action Plan for Energy Efficiency, the
United States Environmental Protection Agency and the United States Department of
Energy brought together representatives from more than 50 leading organizations
representing key stakeholder perspectives in setting policy for electricity and natural gas
services to form a Leadership Group for the National Action Plan. The members of the
Leadership Group join with each other to promote increased national investment in
energy efficiency resources and the widespread adoption of best practices through the
development and implementation of the collaboratively -created National Action Plan for
Energy Efficiency;
When forming the Leadership Group, the United States Environmental Protection
Agency and the United States Department of Energy invited the California Energy
Commission, the California Public Utilities Commission, the Natural Resources Defense
Council, Pacific Gas and Electric Company, Sacramento Municipal Utility District, and
Southern California Edison Company to join other stakeholders from around the country
to collaboratively develop the National Action Plan. By signing this MOU, signatories
now also join with their energy efficiency Leadership Group colleagues from California,
the other western states and across the nation to participate in the ongoing collaborative
development, roll-out and implementation of the National Action Plan;
■ The Leadership Group for the National Action Plan for Energy Efficiency:
o Recognizes that utilities and regulators have critical roles in creating and
delivering energy efficiency programs to their communities;
o Understands that success requires the joint efforts of the customer, utility,
regulator, and partner organizations;
o Commits to work across their spheres of influence to remove barriers to cost-
effective energy efficiency and to take action within their own organizations to
increase attention and investment in energy efficiency; and,
o Supports policy recommendations for creating a sustainable, aggressive national
commitment to energy efficiency through electric and gas utilities and partner
organizations;
■ At the same time that the National Action Plan for Energy Efficiency was being
developed, California's energy leadership was also working with its counterparts in the
Western Governors' Association to develop the Western Governors' Clean and
Diversified Energy Initiative;
In its January 2006 Energy Efficiency Task Force Report, the Clean and Diversified
Energy Advisory Committee found that it would be feasible to cost effectively reduce
electricity use 20% from projected levels in 2020 through full deployment of best
practice policies and programs. The best practices identified in the Western Governors'
Clean and Diversified Energy Advisory Committee report include many of the same
policies and practices identified in the National Action Plan for Energy Efficiency, and
already adopted or currently under consideration in California. These best practices
include the integration of cost effective energy efficiency into resource planning and
procurement, the establishment of energy savings targets, and the decoupling of energy
sales and revenues in combination with the creation of performance incentives that
reward utilities for implementing effective DSM programs;
■ Consistent with its participation in these national and regional initiatives, the energy
policy leadership of the State of California has steadfastly demonstrated its commitment
to the pursuit of cost-effective energy efficiency, conservation, and demand response
options as the resource of first choice for meeting the State's energy needs, including
through the following actions:
o California Law — The Governor and Legislature recently codified energy
efficiency as the State's top priority resource, requiring that each electric and
natural gas utility "first meet its unmet resource needs through all available
energy efficiency and demand reduction resources that are cost effective, reliable,
and feasible";
o California's Energy Action Plan — In California's Energy Action Plan, the
California Public Utilities Commission and the California Energy Commission
have designated cost-effective energy efficiency and demand response options as
2
first in California's "loading order" of resources to meet the State's growing
energy needs. The California Energy Action Plan affirms the value of integrating
energy efficiency, conservation, and demand response programs (as well as
renewable resources) into overall resource planning and procurement;
o Green Building Action Plan Executive Order — Governor Schwarzenegger's 2004
Executive Order 5-20-04 calls for aggressive action to:
■ reduce State building energy usage by undertaking all cost-effective
measures described in the Green Building Action Plan in facilities owned,
funded or leased by the State, and to encourage cities, counties and
schools to do the same,
■ reduce grid -based energy purchases for State-owned buildings by 20% by
2015,
■ adopt Department of General Services guidelines to enable and encourage
schools built with State funds to be resource and energy efficient,
■ provide California Public Utilities Commission support for investor-
owned utilities' information and commercial building efficiency programs,
■ propose a benchmarking methodology and building commissioning
guidelines by the California Energy Commission,
■ undertake all California Energy Commission actions within that agency's
authority to increase efficiency in new construction,
■ target resource efficient buildings for California Public Employees
Retirement System and State Teachers Retirement System real estate
investment, and
■ request participation by State government entities not under the
Governor's direct executive authority;
o California's Building and nd Appliance Codes and Standards — The California
Energy Commission has set the nation's strongest energy efficiency codes and
standards for new buildings and appliances. California keeps these codes and
standards updated approximately every three years through a public process;
o California's Statewide Marketing and Outreach — Under the oversight of the
California Public Utilities Commission, California's investor-owned utilities
promote and support a statewide marketing and outreach campaign that educates
consumers about energy efficiency, conservation and demand response
opportunities. California's statewide marketing and outreach efforts are designed
to support the U.S. Environmental Protection Agency and Department of
Energy's "ENERGY STAR" efforts and provide information about programs
available for California consumers. California's current statewide marketing and
outreach campaign offerings include the "Flex Your Power" and "Flex Your
Power Now" general awareness campaigns, as well as associated Spanish-
language media and rural community outreach campaigns;
o California's Investor -Owned Utilities' Investment in Cost -Effective Energy
Efficiency and Demand Response Resources — California's investor-owned
utilities (Pacific Gas and Electric Company, San Diego Gas and Electric
Company, Southern California Edison Company, and Southern California Gas
3
Company) continue their longstanding active commitment to pursuing all cost-
effective energy efficiency, conservation, and demand response resources. The
investor-owned electric utilities are putting these demand-side resources first in
their resource planning and procurement "loading order" for meeting their
customers' energy needs and the gas utilities are pursuing all cost-effective
energy efficiency resources to reduce natural gas demand. Working
collaboratively with the California Public Utilities Commission, California's
investor-owned utilities have secured the nation's highest program funding levels
to mount the most aggressive energy efficiency and demand response campaign in
California's — and the country's — history;
o California's Municipally -Owned Utilities' Demonstrated Commitment to Energy
Efficiency, Conservation, and Demand Response Resources — California's
municipally -owned utilities have sustained their commitment to energy
efficiency, conservation and demand response resources over many years as a key
resource strategy and customer service value, and that commitment will continue
as municipal utilities pursue with renewed vigor all opportunities for cost
effective investment in innovative programs and technologies to meet customers'
energy and service needs, accelerate market adoption of emerging technologies,
and potentially develop new measures which may be considered for future
adoption into California's energy efficiency codes and standards;
As a direct result of California's wise energy policies, aggressive actions and long-
standing commitment to the pursuit of capturing the benefits of energy efficiency,
conservation, and demand response resources, California's per capita energy use has
remained approximately flat over the past 30 years, while per capita electricity
consumption in the U.S. has increased by nearly 50 percent. This remarkable
accomplishment is attributable to the combination of the State's continued progress in
cost-effective building and appliance standards and the ongoing success of the energy
efficiency programs of California's utilities and other entities. California's results have
been validated through careful analyses of program potential and cost-effectiveness, as
well as rigorous measurement, verification and reporting of program results to
substantiate that consumers are receiving the benefits of their investment in demand-side
resources;
NOW, THEREFORE, THE SIGNATORIES TO THIS MEMORANDUM OF
UNDERSTANDING PLEDGING THE SUPPORT OF THE STATE OF CALIFORNIA FOR
THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY DO HEREBY PLEDGE:
■ Active support for the development, promotion and implementation of the National
Action Plan for Energy Efficiency, including:
o Supporting the ongoing development of the National Action Plan for Energy
Efficiency by reviewing the working group reports and considering their
recommendations for adoption;
o Participating in the national roll-out of the National Action Plan for Energy
Efficiency (scheduled for July 31, 2006, at the NARUC Summer Committee
meetings in San Francisco, California) by issuing a press release on that date
stating the signatory's support for recommendations from the National Action
Plan for Energy Efficiency and pledging specific continuing and expanded
commitments to the promotion, funding and implementation of energy efficiency
in California;
o Providing resources to promote recommendations from the National Action Plan
for Energy Efficiency at speaking engagements and other educational
opportunities, including participation in "buddy system" outreach efforts in which
the signatories engage fellow political leaders, regulators, utilities and other
stakeholders to inform them about the National Action Plan for Energy
Efficiency's best practice findings and recommendations; and,
o As appropriate for each signatory, continuing to model California's best practices
and policies identified in the National Action Plan for Energy Efficiency,
including:
■ designation of energy efficiency as a high priority resource option;
■ adoption of targets for energy efficiency;
■ pursuit of energy efficiency resources under a long-term resource planning
and procurement framework;
■ institution of a regulatory framework that encourages utility investment in
energy efficiency; and
■ sharing California's successes with others interested in energy efficiency
and learning from others' successes in the planning and delivery of cost-
effective energy efficiency programs.
5
RESOLUTION NO. 2006-187
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY OF LODI TO ENDORSE THE CALIFORNIA
MEMORANDUM OF UNDERSTANDING IN SUPPORT OF THE
NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY
WHEREAS, the United States Department of Energy and the Environmental Protection
Agency are co -sponsoring the National Action Plan for Energy Efficiency (NAPES); and
WHEREAS, these two agencies have developed a series of voluntary recommendations
and hest practices for organizations across the country to promote energy efficiency; and
WHEREAS, the key elements of the NAPEE include:
➢ recognizing energy efficiency as a priority resource;
➢ making a strong commitment to implementing cost effective energy efficiency;
➢ promoting energy efficiency across the nation; and
➢ implementing a proactive public communications program, which highlights the
benefits of energy efficiency.
WHEREAS, in order to demonstrate support for the NAPEE, a Memorandum of
Understanding (MOU) has been sponsored by the California Governor's office, the California
Energy Commission, the California Public Utilities Commission, the Natural Resources Defense
Council, and many of the states larger electric utilities, including the Sacramento Municipal
Utility District and the Los Angeles Department of Water and Power. The MOU has been
endorsed/executed by the Northern California Power Agency (NCPA) and a number of
individual NCPA member agencies; and
WHEREAS, staff recommends that the City Council officially endorse: the NAPEE and
support the California MOU pledging the Golden State's support of the NAPEE.
NOW, THEREFOCE, BE IT RESOLVED that the Lodi City Council hereby adopts this
Resolution endorsing the California MOU in support of the NAPEE.
Dated: October 18, 2006
I hereby certify that Resolution No. 2006-187 was passed and adopted by the Lodi City
Council in a regular meeing held October 18, 2006, by the following vote:
AYES: COUNCIL MEMBERS — Beckman, Hansen, Johnson, Mounce, and
Mayor Hitchcock
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — Non
PNDIHL
City Clerk
2006-187