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to~ tos COUNCIL AGENDA REPORT
DATE: February 18, 2010
MEETING DATE: 3/1/10
ITEM NO: ~
TO: MAYOR AND TOWN COUNCIL
FROM: GREG CARSON, TOWN MANAGER
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SUBJECT: ADOPT RESOLUTION REGARDING RETROFIT BAY AREA, A
COMPREHENSIVE RESIDENTIAL BUILDING RETROFIT PROGRAM
RECOMMENDATION:
Adopt a resolution regarding Retrofit Bay Area, a comprehensive residential building retrofit
program, which will fund energy audits and retrofits of Los Gatos homes to achieve a reduction
in energy consumption.
BACKGROUND:
The California Energy Commission's (CEC) issuance of $95 million in State Energy Program
(SEP) grant funds provided an unprecedented opportunity to develop and implement a regional
community-scale building retrofit program. The Association of Bay Area Governments
(ABAG), in partnership with the eight Bay Area counties and a total of 1041oca1 governments in
the San Francisco Bay Area, worked together to develop an innovative program, "Retrofit Bay
Area," amarket-driven residential retrofit program. This self-sustaining program will stimulate
the economy and create jobs while transforming energy markets in California. Designed for
scalability and transferability, this program will create a model that can be replicated statewide
and nationally.
SEP grant funds were also awarded to fund CaliforniaFIRST, aproperty-assessed clean energy
(PACE) program being launched by California Communities, a joint powers authority sponsored
by the League of California Cities and the California State Association of Counties. At its
January 18 meeting, Council authorized the Town to join the CalifonniaFIRST program.
PREPARED BY: Regina A. 1
Communit e~ Director
Reviewed by: Assistant Town Manager f~~Town Attorney
Clerk Administrator ~~Finance ommunity Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: Retrofit Bay Area
February 18, 2010
T)TSC;T TS~TnN~
Regional Scope of Work: ABAG applied for, and was awarded, a $10.75 million grant from the
CEC to fund Retrofit Bay Area. This region-wide energy efficiency program will retrofit 17,000
homes (single family and multifamily) to achieve reduction in home energy consumption, while
creating 1,739 home energy retrofit jobs. The grant funds will pay for regional program
development, local program development and implementation, evaluation, measurement and
verification, and administration and reporting.
Local Scope of Work: ABAG and the grant Steering Committee have agreed to a population-
based allocation for each county-specific program. In addition, StopWaste.Org and Sonoma
County Transportation Authority will be tasked to carry out some regional deliverables, since the
two agencies have a substantial head start in planning and developing components of green
retrofit programs.
Santa Clara County's proposed budget allocation is $1.95 million. See Exhibit A to Attachment 1
of this report for a summary description of the Retrofit Bay Area program and Santa Clara
County's local role. In short, Santa Clara County plans a Santa Clara County Residential
Retrofit Program (SCCRRP). SCCRRP would provide energy audits and retrofits in all the cities
and unincorporated areas of Santa Clara County, including Los Gatos. It would consist of a suite
of environmental programs and information, including property-assessed (PACE) financing
options such as CaliforniaFIRST. The energy audits are expected to stimulate interest in
comprehensive home retrofits such as added insulation, heating and air conditioning upgrades,
new windows, and energy efficient appliances, resulting in significant reductions in energy and
water consumption. It is projected that this work will result in 446 new jobs, $1.7 million saved
energy costs for homeowners, 100 billion BTU's reduced, and $43.8 million spent in Santa Clara
County.
CEC Requirements: All participating counties in the ABAG proposal must provide an
authorizing resolution. The Resolution must be approved by each county's Governing
Authority. The Santa Clara County Board of Supervisors will consider the issue at its March 2
meeting. Once approved, an agreement between the CEC and ABAG must be signed and will
include the project description, work statement tasks and milestones, budget, and schedule.
ABAG has requested that cities in the participating counties also provide an authorizing
resolution. This authorizing resolution is Attachment 1 to this report.
CONCLUSION:
The Retrofit Bay Area program, through the local Santa Clara County Residential Retrofit
Program, would provide Los Gatos homeowners access to a suite of environmental programs and
information, including comprehensive home retrofits such as added insulation, heating and air
conditioning upgrades, new windows, and energy efficient appliances, resulting in significant
reductions in energy and water consumption. Full grant funding of the program has already been
committed by the California Energy Commission. Participation in this program would represent
a key part of the Town's ongoing commitment to a green and sustainable future.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: Retrofit Bay Area
February 18, 2010
ENVIRONMENTAL ASSESSMENT:
The draft Resolution (Attachment 1) includes the finding that Retrofit Bay Area is an exempt
project 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 programs) because the project would develop standards for
resource conserving and energy saving retrofits of existing structures in conformance with
existing building codes; train contractors, homeowners and other building professionals;
encourage participation in the green retrofit program; provide rebates for tested and certified
retrofit projects; and monitor and evaluate environmental performance of projects.
FISCAL IMPACT:
Retrofit Bay Area and the Santa Clara County Residential Retrofit Program are funded by SEP
funds through the CEC. Santa Clara County will receive more than $1,950,000 of the grant
funds; this money will be used to fund two County staff positions, as well as the administration
of the program. It is likely that Town staff will be involved in development of the program as
part of a committee of the Santa Clara County municipalities. It is unclear at this time what
additional commitment will be required of the Town; it could include monitoring and oversight
of the program, and local marketing of the program. No SEP grant funds will be received by the
Town.
Attachments:
Draft Resolution of the Town Council of the Town of Los Gatos fmding that Retrofit Bay
Area is an exempt project under the California Environmental Quality Act; authorizing
the Association of Bay Area Governments to accept a grant award on its behalf and to
enter into all necessary contracts and agreements; and recognizing the County of Santa
Clara as the local lead implementer for all of the local governments in Santa Clara
County (Exhibit A).
Tai ~trihuti nn
Sustainability Committee members
Jill Boone, Climate Change/Sustainability Program Manager, Santa Clara County
Annie Henderson, Renewable Funding
Attachment 1
RESOLUTION 2010-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
FINDING THAT RETROFIT BAY AREA IS AN EXEMPT PROJECT UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT;
AUTHORIZING THE ASSOCIATION OF BAY AREA GOVERNMENTS TO ACCEPT
A GRANT AWARD ON ITS BEHALF AND TO ENTER INTO ALL NECESSARY
CONTRACTS AND AGREEMENTS; AND
RECOGNIZING THE COUNTY OF SANTA CLARA AS THE LOCAL LEAD
IMPLEMENTER FOR ALL OF THE LOCAL GOVERNMENTS IN SANTA CLARA
COUNTY
WHEREAS, the Town of Los Gatos 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 Town of Los Gatos 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; 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 ornon-profit entities to apply for
funds on behalf of eligible local governments; and
WHEREAS, the Town of Los Gatos is eligible for SEP funding under the
California Energy Commission's SEP Program; and
WHEREAS, the Town of Los Gatos has collaborated with the Association of
Bay Area Governments (ABAG) to submit a regional application to implement the energy
efficiency project described in Exhibit A for the purpose of qualifying for SEP funds from the
California Energy Commission; and
WHEREAS, the Town of Los Gatos has considered the application of the
California Environmental Quality Act (CEQA) to the approval of the energy efficiency project
described in Exhibit A.
NOW, THEREFORE, BE IT RESOLVED THAT that in compliance with the
California Environmental Quality Act (CEQA), the Town Council of the Town of Los Gatos
finds that the approval of the energy efficiency project described in Exhibit A is a "project"
under CEQA that is exempt under California Code of Regulations, Title 14, sections 15301
N:\CSD\TCRPTS\Resolutions\2010\Retrofit Bay Area reso.doc
(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 programs) because the project would
develop standards for resource conserving and energy saving retrofits of existing structures in
conformance with existing building codes; train contractors, homeowners and other building
professionals; encourage participation in the green retrofit program; provide rebates for tested
and certified retrofit projects; and monitor and evaluate environmental performance of projects.
BE IT FURTHER RESOLVED, that the Town of Los Gatos authorizes ABAG to accept a
grant award from the California Energy Commission, on its behalf and to enter into all
necessary contracts and agreements, and amendments thereto, on its behalf to implement and
carry out the project described in Exhibit A; and
BE IT FURTHER RESOLVED, that the Town of Los Gatos recognizes the County of Santa
Clara as the lead local implementer for the project described in Exhibit A 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 project described in Exhibit A.
PASSED AND ADOPTED
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED: /s/Mayor Diane McNutt
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST: /s/ Jackie D. Rose
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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Exhibit A: Retrofit Bay Area
Comprehensive Residential Building Retrofit Program
Summary of grant proposal submitted by ABAG to the California Energy Commission on
December 21, 2009
Description of Proposed Program
The Association of Bay Area Governments (ABAG) is collaborating with eight Bay Area
counties to establish a comprehensive residential single-family and multifamily building retrofit
program that leverages regional cooperation and funding while enabling autonomy at the local
level. The proposed ABAG program aligns with local, regional 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.
On behalf of Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara, Solano and
Sonoma Counties, ABAG submitted a proposal to the California Energy Commission's State
Energy Program (SEP) to receive $10.8 million in American Recovery and Reinvestment Act
(ARRA) grant funds administered by the U.S. Department of Energy. This grant program,
known informally as SEP 2 to distinguish it from three other elements of California's SEP
program, runs from February 11, 2010 to March 31, 2012. The ARRA/SEP 2 grant funds would
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 accelerate 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, Retrofit Bay Area has identified 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 paid via their property taxes.
2. Demonstrate more effective marketing and outreach methods to inform and motivate
property owner participation.
3. Streamline participant, contractor, and administration processes to reduce the high
transaction costs and build a quality "green" workforce.
The ABAG program thereby will complement existing and planned local retrofit activities.
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Program Participants and Roles
Participant Role
Association of Bay Area Governments Fiscal agent and contract administrator
Alameda County (StopWaste.Org) and Regional tasks and local retrofit program
Sonoma County (Sonoma County implementation
Transportation Authority)
Contra Costa, Marin, San Francisco, San Local retrofit program implementation
Mateo. Santa Clara and Solano Counties
Bevilacqua Knight, Inc., Build It Green and Regional and local implementation assistance,
California Building Performance Contractors quality assurance and reporting
Association
The 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). If grant funding is 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 County is providing a grant process for nonprofits, businesses, housing agencies, utilities
and consulting firms to provide energy audits to the residential community. The SCCRRP will
consist of a suite of environmental programs and information, including PACE financing
options, that 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.
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