10. ABAG Retrofit Bay AreaOFFICE OF THE CITY MANAGER
Environmental Affairs Division
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (40~) 777-3223 • FAX: (408 777-3366
CUi~L~R71N0 GREEN
Program
STAFF F;EPORT
Agenda Item No. ~ ~ Meeting Date: March 2, 2010
SUB,~ECT AND ISSUE
Authorize the City of Cupertino to join the Association of Bay Area Governments' Retr-o. fit Bay
Area, a Comprehensive Residential Single-Family and Multifamily Building Retrofit Program.
BACKGROUND
On September 30, 2009 the California Energy Cc-mmission's (CEC) adopted its State Energy
Program Guidelines (SEP}, which set aside up to $95 million for its existing Municipal
Financing Program {termed SEP 1}, California C~~mprehensive Residential Building Retrofit
Program (termed SEP 2), and the Municipal and ~~ommercial Building Targeted Measure
Retrofit Program (termed SEP 3}. These State Energy Program (SEP} funds are made available
for proposed programs that implement energy sa~jings projects on or before March 31, 2012.
The Association of Bay Area Governments (AB~.G) in partnership with the eight Bay Area
counties and a total of 104 local governments in the San Francisco Bay Area worked together to
present an innovative proposal -Retrofit Bay Area -- to access the SEP funds and establish the
infrastructure for amarket-driven residential retrofit program. On February 10, 2010, ABAG was
successfully awarded a $10.75 million SEP grant to fund Retrofit Bay Area, with a defined scope
of retrofitting 17,000 homes (single family and multifamily) to achieve an average of a 20%
reduction in home energy consumption, while creating 1,739 home energy retrofit jobs.
PROGRAM SUMMARY
The proposed ABAG program aligns with local, ~~egional and national goals of promoting
economic vitality through an increase in green jobs, reducing U.S. oil dependency through
increases in energy efficiency and deployment of renewable energy technologies, and reducing
greenhouse gas emissions. The ARRA/SEP 2 gra;~t funds will be used by ABAG program
participants to carry out local and Bay Area-wide consumer outreach and education campaigns
and workforce development activities that will ac Telerate demand for home energy retrofits and
expand the regional building industry's capacity to delivery high-quality, cost-effective retrofit
services.
To achieve these goals, Retroj~t Bay Area has ide~ltified a set of three core program objectives:
1. Provide Property Assessed Clean Energy (PACE) financing to address the high upfront cost of
retrofits, which enables homeowners to financE, energy efficiency retrofits and renewable
energy improvements through assessments pai{i via their property taxes.
2. Demonstrate effective outreach methods to infc-rm and motivate property owner participation.
3. Streamline participant, contractor, and administration processes to reduce the high transaction
costs and build a quality "green" workforce.
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PROGRAM PARTICIPANTS AND ROLES
The grant will include regional program development, local program development and
implementation, evaluation, measurement and verification, and administration and reporting. The
ABAG program thereby will complement existing and planned Local retrofit activities.
Participant Role
Association of Bay Area Governments Fiscal agent and contract adnunistrator
Alameda County {StopWaste.Org} and Sonoma Regional tasks and local retrofit program
County {Sonoma County Transportation Authority) implementation
Contra Costa, Marin, San Francisco, San Mateo, Local retrofit program implementation
Santa Clara and Solaro Counties
Bevilacqua Knight, Inc., Build It Green and Regional and local implementation assistance,
California Building Performance Contractors quality assurance and reporting
Association
COUNTY OF SANTA. CLARA'S ROLE
The County of Santa Clara has represented the interests of the County and its cities in working
with ABAG to develop a regional energy program and is working with the cities to develop a
countywide element that will become the Santa Clara County Residential. Retrofit Program
{SCCRRP). Of the grant fixnding awarded to ABAG, Santa Clara County will receive more than
$1,950,000 for the SCCRRP to implement local efforts to promote energy audits and retrofits for
the residential sector in all the cities and unincorporated areas of the County.
The SCCRRP will consist of a suite of environmental programs and information, including
Property Assessed. Clean Energy (PACE) financing options, as awarded through SEP 1 to
Renewable Funding, which will be uniformly packaged, marketed and presented to County
constituents. The energy audits are expected to stimulate interest in comprehensive home
retrofits such as added insulation, weatherization, heating, ventilation and air conditioning
upgrades, new windows and energy efficient appliances, resulting in significant reductions in
energy and water consumption.
The nearly $2 million that will be available for the SCCRRP will fund two County staff positions
and various programs. ABAG is seeking to facilitate 17,000 retrofits in the Bay Area during the
grant cycle, with an average of 20% energy reduction. Based on the County having 26% of the
population of the eight participating counties, the SCCRRP will aim for 4,359 retrofits. It is
projected that this work will result in 446 new jobs, $1.7 million saved in energy costs for
homeowners, 100 billion reduction of BTU, and $43.8 million spent in the County.
The SCCRRP will not change the permitting or building inspection processes within the County,
and will seek to inform and educate residents on steps that they can take to reduce their energy
consumption and water usage. Residents who participate in the program and have energy audits
performed on their- homes will be encouraged to implement the steps recommended by the
energy audit and upgrade their home to be more energy efficient and to consume less water.
CITY OF CUPERTINO'S ROLE
The California Comprehensive Residential Building Retrofit Program. is designed to collaborate
with consortia of local governments and utilities in regions around the state that develop and
operate energy conservation programs to provide:
o Targeted information to recruit residential building owners to participate;
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• Training and support for the workforce tr.at will be deployed to provide each tier of
retrofits (collaborating with the ARRA SIP Green Jobs Training Program};
• Access to and facilitation of retrofit financing, through municipal financing programs,
Energy Efficiency Conseivati~n Block Grant (EECBG} funding, Department of
Community Services and Development ({~SD} low-income weatherization programs,
U.S. Department of Housing and Urban Development {HUD) financing such as Energy
Efficient Mortgages, and utility program energy and water rebates and incentives;
• Support of and engagement in field verification consistent with the California Home
Energy Rating System Program to insure quality installations and to monitor program
results;
• Co-funding of incentives to seed programs that will be self-sustaining after. the term of
the ARRA funding expiY•es.
SUSTAINABILITY IMPLICATIONS
Retrofit Bay Area audits are expected to stimulate; interest in comprehensive home retrofits such
as added 'insulation, weatherization, heating, ventilation and air conditioning upgrades, new
windows and energy efficient appliances, resulting in significant reductions in energy and water
consumption within participating homes. According to the California Energy Commission's
(CEC) 2005 report "Energy Efficiency in Existing Buildings" CEC projected that electricity can
be reduced by 9% and natural gas 6% through cast effective measures which can translate into
$4.5 billion dollars in consumer savings, equal to removing 3 million cars from the road per year.
FINANCIAL IMPACT
The City of Cupertino is invited to participate in :his program at no cost. All fees and expenses
to audit and retrofit I7,000 homes will be funded by ABAG's award of a $10.75 million grant
from the California Energy Commission.
RECOMMENDED ACTION
Authorize the City of Cupertino to join the Association of Bay Area Governments' Retrofit Bay
Area, a Comprehensive Residential Single-Famil y and Multifamily Building Retrofit Program.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION
The City will. not approve resolutions to join and will consequently not participate in the
Association of Bay Area Gove ent's Retrofit ~~ay Area Program,
. Su 'tt by A oved r submission:
Rick Kitson David W. Knapp
Public and Environmental Affairs Director City Manager
a~'~..
rul Coo e
Environmental Affairs Coordinator
ATTACHMENTS:
Attachment A; Resolution to join the ABAG Ret--of t Bay Aj°ea Program
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?~mCFWMnI A
RESOLUTION NO. 10-043 ~~~ ~"
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AUTHORIZING THE CITY TO JOIN THE ASSOCIATION OF BAY AREA
GOVERNMENTS' RETROFIT BAYAREA, A COMPREHENSIVE RESIDENTIAL
SINGLE-FAMILY AND MULTIFAMILY BUILDING RETROFIT PROGRAM.
WHEREAS, the City of Cupertino recognizes that it is in the interest of the local, regional, state,
and federal agencies to stimulate the economy; create and retain jobs; reduce fossil fuel
emissions; and reduce total energy usage and improve energy efficiency; and
WHEREAS, the City of Cupertino has committed to an ongoing, coordinated effort to reduce the
emissions that cause global warming, improve air quality, reduce waste, cut energy use and save
money. The City of Cupertino is committed to reducing community-wide greenhouse gas
emissions through targets established through the Mayor's Climate Protection Agreement and
Bay Area Climate Compact; and
WHEREAS, State Energy Program (SEP) funds are available through the California Energy
Commission's SEP Funding Opportunities for grants to eligible local governments for cost-
effective energy efficiency projects; and
WHEREAS, the SEP allows for public agencies or non-profzt entities to apply for funds on
behalf of eligible local governments; and
WHEREAS, the City of Cupertino is eligible for SEP funding under the California Energy
Commission's SEP Program; and
WHEREAS, the City of Cupertino has collaborated with the Association of Bay Area
Governments {ABAG) to submit a regional application to implement the energy efficiency
projects resulting from energy audits which are expected to stimulate interest in comprehensive
home retrofits such,as added insulation, weatherization, heating, ventilation and air conditioning
upgrades, new windows and energy efficient appliances, resulting in significant reductions in
energy and water consumption for the purpose of qualifying for SEP funds from the California
Energy Commission; and
WHEREAS, the City of Cupertino has considered the application of the California
Environmental Quality Act (CEQA) to the approval of the energy efficiency projects described
in the City's Staff Report, dated March 2, 2010; and
NOW, THEREFORE, BE IT RESOLVED, that in compliance with the California Environmental
Quality Act (CEQA), the City of Cupertino finds that the approval of the approval of the
program to conduct energy audits intended to result in the implementation of energy efficiency
projects in local residences is a "project" under CEQA that is exempt under California Code of
Regulations, Title 14, sections 15301 (repairs and minor alterations to existing facilities}, 15302
{replacement or reconstruction of existing structures and facilities), 15306 (information
collection), 15308 (actions to protect the environment}, 15309 {inspections), and 15322 (training
pxograms} because the project would develop standards for resource conserving and energy
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Resolution No. 10-043
saving retrofits of existing structures in conformance with existing building codes; train
contractors, homeowners and other building professionals; encourage participation in the green
retroft program; provide rebates for tested at~d certified retrofit projects; and monitor and
evaluate environmental performance of projects; rind
BE IT FURTHER RESOLVED, that the City of Cupertino authorizes ABAG to accept a grant
award from the California Energy Commission ors its behalf and to enter into all necessary
contracts and agreements, and amendrnents thereto, on its behalf to implement and carry out the
projectls described in; and
BE IT FURTHER RESOLVED, that City of Cup~:rtino recognizes the County of Santa Clara as
the lead local implementer for the projectls described in the City's Staff Report, dated March 2,
2010 for all of the local governments in Santa Clara County, and that ABAG as the fiscal agent,
will disburse the funds to Santa Clara County to implement and carry out the projectls described
in the aforementioned Staff Report.
PASSED AND ADOPTED at a regular mt;eting of the City Council of Cupertino this 2nd
day of March, 2010, by the following vote:
Vote Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
APPROVED:
Mayor, City of Cupertino
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