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HomeMy WebLinkAbout2009/03/03 Item 12 CITY COUNCIL AGENDA STATEMENT ~Uf:.. em' OF ~ (HULA VISTA ITEM TITLE: SUBMITTED. BY: REviEWED BY: MARCH 3, 2009, ItemJ;}- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) ACCEPTING THE 6-MONTH PROGRESS REPORT ON CLIM..ATE PROTECTION MEASURES IMPLEMENTATION AND (2) DIRECTING STAFF TO RETURN WITHIN 180 DAYS WITH ANOTHER IMPLEMENT A nON UPDATE DIR. OF CONSERVATION & ENVI NMENTAL SERVICES ~ DIRECTOR OF PUBLIC WORKS CITY MA.NAGE ASSISTA.NT CITY AGER S ~ . 4f5THS VOTE: YES 0 NO I x I SUMMARY Chula Vista's greenhouse gas or "carbon" emissions have increased ~5% between 1990 and 2005, while emissions on a per capita basis and from municipal operations have decreased by 17% and 18%, respectively. To reduce these emissions and help meet the City's emissions reduction goal of 20% below 1990 levels by 2010, the City Council adopted in July 2008 implementation plans for seven new climate protection measures. The new measures, which were vetted through over 25 public forums and meetings with stakeholder groups and municipal commissions, focus on lowering energy and water consumption, installing renewable energy systems, promoting alternative fuel vehicle use and designing pedestrian and transit-friendly communities. The attached report outlines staffs progress in implementing the' measures and pursuing their Council-approved fmancing strategy. Generally, most measures are being partially implemented based on current available funding levels and are meeting the milestones outlined in their original implementation plans. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 8 categorical exemption pursuant to 12-1 MAACH 3,2009, Item \d- Page 2 of5 Section 15308 [Actions by Regulatory Agencies for Protection of the Environment] of the State CEQA Guidelines. Thus, no further environmental review is necessary. RECOMMENDATION City Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Staff presented the 6-month progress report for the climate protection measures' implementation to the Resource Conservation Commission on January 26, 2009 and February 9, 2009. Although no formal vote was taken, the Commission was satisfied with implementation progress and was supportive of pursuing additional funding to support full implementation. For Measure #3, the Commission noted the importance of ensuring that businesses understand the energy assessments' goal is to identify energy savings opportunities and, participating businesses are not required to implement identified improvements. In addition, the Commission was unanimously supportive of phasing the assessments from a voluntary program to a mandatory requirement. DISCUSSION Chula Vista has historically been a regional and national leader in climate protection policies and programs designed to reduce greenhouse gas or "carbon" emissions. The City has participated in the United Nations Framework Convention on Climate Change, rCLEr Cities for Climate Protection Campaign and the Conference of Mayor's Climate Protection Agreement. Through this involvement, the City has committed itself to reducing its greenhouse gas (GHG) emissions 20% below 1990 levels by 2010. The City's 2005 GHG emissions inventory indicated that annual citywide GHG levels had increased by 35% since 1990 due primarily to residential growth. However, the City did make significant progress in reducing annual per capita emissions by 17% and municipal operation emissions by 18% mainly due to energy-efficient traffic signal retrofits. As a result, the City Council directed staff to convene a Climate Change Working Group (CCWG) to develop recommendations to reduce the community's greenhouse gas emissions. The CCWG - comprised of residential, business and community~group representatives - evaluated over 90 climate protection measures and chose seven measures to ultimately recommend to City Council. On April 1, 2008, City Council adopted the CCWG's seven recommendations and directed staff to develop more detailed implementation plans that included input from a broader range of stakeholders, identified potential funding mechanisms and established time lines, budgets, and evaluation criteria. On July 10, 2008 City Council formally approved the implementation plans for the measures and authorized staff to pursue additional funding sources to ensure their full and long-term implementation. The new measures focus on lowering energy and water consumption, installing renewable energy systems, promoting alternative fuel vehicle use and designing pedestrian and transit-friendly communities. As outlined in the attached progress report, staff has initiated partial implementation of most measures based on available funding levels and are generally meeting the program milestones outlined in the measures' 12-2 Mi\RCH 3, 2009, Item~ Page3of5 original implementation plans. Staff has also strived to integrate the measures' implementation into existing City programs, policies and regulatory processes to avoid duplication of efforts and to increase cost-effectiveness. To achieve the measures' full and sustained implementation, staff has pursued the Council-approved fmancing strategy outlined in the original plans. Because each of the potential fmancing options has specific pros and cons related to funding timeline, reliability and application to the seven measures, the strategy is based on a portfolio approach (see Table 1). This portfolio strategy allows funding levels to be adaptively managed to meet various program needs. For example, some funding sources are more appropriate to support staff time, while other sources (such as grants and bonds) are more effectively used for capital improvement expenditures. The strategy is also sensitive to the City's broader budgetary challenges by gradually directing new revenue to fund climate measures implementation and to prioritize funding for existing staff positions that would otherwise be General Fund dependent. Below is a summary of the specific steps and timeframes which staff is following to implement the fmancing strategy: Table 1: Summary of financing strategy and timeline for securing each funding option SDG&E Partnership Partnership with utiltty to provide energy efficiency services to the community Energy Franchise Fee Franchise fee with SDG&E for gross electricity and natural gas delivery could be increased. A fee authority would enable the City Local Fee to place a local surcharge on utility Authority bills and would require state legislature approval. City has secured "Bridge Funding" until the full 2009-2011 partnership program ($4.6 million for 3-year period) is approved by CPUC. x x x Fonmal negotiations have begun and potential revenue Increases would mainly be used to address CIty's immediate budget shortfalls. A greater percentage of the new revenue would be phased Into supporting the ciimate measures over time. x x x x Staff has received positive feedback from State representatives and community stakeholders during Initial discussions on establishing a fee authority. x x x Development permit fees could be B Yd' increased to cover the additional costs Master Fee Study currently being finalized P W 'Fng associated with l(Tlplementing a and will be presented to Council for review errnlt ees. 'd d' b 'Id' d \ Cltywl e, man atory green UI Ing ..' an approva.- standard. A public bond could be Issued and P bl' B d secured through Increased sales tax. u IC on transient occupancy tax and/or property tax. Grants Grant funding could be solicited from local. state and federal agencies. x x x Currently investigating the public bond process and structure necesssary to support climate measures. Staff will produce a public bond proposal for City Council's consideration, x X (for general bond) x City continues to solicit grant support to provide capital Improvement funding. x x x x 12-3 MARCH 3, 2009, Item--l.1.h Page 4 of 5 1-6 Months Current implementation levels will be maintained with the "Bridge Funding" provided through the SDG&E Local Government Partnership. These funds are adequate to support full implementation of Measure #3 (Business Energy Assessments) and partial implementation of Measures #4 (Green Building Standard) and #5 (Community Solar & Energy Efficiency Conversion). During this period, the City will build upon the past meetings between the City Manager's Office and SDG&E representatives to further negotiations on franchise fee increases. The specific fee increase amount will be determined through the City Council's current budget discussions, but staff believes that the amount would most likely produce revenues exceeding the annual funding requirements for the seven climate measures. If negotiations are successful, the City will mainly use the additional revenue to address its immediate, broader budget shortfalls. However, over the next 3 years as Chula Vista's fmancial situation stabilizes, a greater percentage of the new revenue ",ill be phased into supporting direct implementation of the Council-approved climate measures to meet Chula Vista's greenhouse gas emissions reductions goals. Staffwill also fmalize the current Master Fee Study which is reevaluating the appropriate developer and buildiIlg fee amounts needed to support Chula Vista's development services. Once completed, the City Council will be presented any recommended fee increases to support the new citywide Green Building Standard (Measure' #4). Additional one-time funding will be simultaneously pursued through the federal Economic Stimulus Package and California Assembly Bill 118 to support Measures #1 and #2 (Alternative Fuel Vehicles and Infrastructure), while annual funding support will be solicited through the Energy Efficiency and Conservation Block Grant program to assist with implementing Measures #5 and #7. 6-18 Months By July 2009 it is anticipated that the California Public Utilities Commission will approve and finalize the full funding levels for the City's 2009-2011 SDG&E Local Government Partnership. These funds, estimated at $1.5 million annually for the 3-year period, will enable full implementation of Measures #3 (Business Energy Assessments) and #4 (Green Building Standard) and continued partial implementation of #5 (Community Solar & Energy Efficiency Conversion). During t.1Us period, staff ",ill continue to work closely with State representatives and local stakeholder groups in pursuing local fee authority legislation in order to provide municipal governments with long-term financing options for their climate protection efforts. Staff will also produce a public bond proposal for City Council's consideration in order to finance capital improvements on private and public properties to help reduce energy and water consumption and to install solar energy systems (Measures #5 and #7). The bonds could be secured through a voluntary property assessment district and/or a general voter-approved tax increase. 12-4 MiRCH 3, 2009, Item~ Page 5 of 5 1.5-3 Years As the City's overall budget situation improves over the next 3 years, it is recommended that a portion of the new annual revenue from a franchise fee increase be redirected to fmance the climate measures. This revenue source would be supplemented with revenue from a local fee authority to address the approximately $2.3 million in total annual program costs (such as staff time, supplies and services) and to ensure full, long-term implementation of all seven measures. As mentioned above, these annual climate-related revenues will be mainly appropriated to support existing City staff positions which would normally be budgeted from the General Fund. These ongoing revenue sources will also be further leveraged to more effectively obtain one-time revenues from federal appropriations; grants and bond issuances. City staff will continue to aggressively pursue the funding strategy which was outlined in the Council-approved implementation plans and updated through this 6-month progress report. Staff will formally return to City Council within at least 180 days to provide further clarity on the climate measures' overall implementation and 'status on their financing. Departments will also be returning to City Council throughout the neJl..'! 6 months to present specific ordinances and resolutions necessary for the implementation of individual measures. DECISION MAKER CONFLICT Staff has determined that the recommendations requiring Council action are not site specific and consequently the 500 foot rule found in California Code. of Regulations section 18704.2(a)(l) is not applicable to this decision. FISCAL IMPACT Current partial implementation of the climate protection measures is being funded through existing departmental budgets and external funds, thus not creating a new impact to the General Fund. Per City Council's direction in July 2008, staff continues to pursue additional one-time and ongoing funding sources to support full, sustained implementation estimated at $1,286,380 and $2,275,152, respectively. As new revenue is secured, the implementation of these measures will be expanded and the additional program costs, which include staff time, materials and contractor services as well as some capital improvement projects, will be fully offset by the new revenue (i.e. no new General Fund impact). Furthermore, some measures will also help create General Fund savings in the long-term through increased energy and water efficiency at municipal facilities and reduced fuel consumption by fleet vehicles. ATTACHMENTS Attachment A - Climate Protection Measures Progress Report (February 2009) Attachment B - CCWG Measures' Implementation Plans (July 2008) Prepared by: Brendan Reed, Environmental Resource Manager, Conservation & Environmental Services 12-5 ~~ft- ~ :=. ~ I ATTACHMENT A I CllY OF CHULA VISTA CLIMA TE PROTECTION MEASURES Implementation Progress Report SUMMARY On July 10, 2008 the City Council adopted implementation plans for seven new climate protection measures to reduce Chula Vista's greenhouse gas or "carbon" emissions. The measures were originally recommended by the City's Climate Change Working Group, which was comprised of residents, businesses and community representatives, and were vetted through over 25 public forums and meetings with stakeholder groups and municipal commissions before being approved by City Council. The new measures were designed to help meet the City's emissions reduction goal of 20% below 1990 levels by 2010 by lowering energy and water consumption, installing renewable energy systems, promoting alternative fuel vehicle use and designing pedestrian and transit-friendly communities. As directed by City Council, staff has. begun partial implementation of the seven measures over the last 6 months based on available funding and has also been pursuing a variety of funding sources to address the measures' full and sustained implementation. The following report outlines each measure's implementation status and upcoming milestones as well as progress in securing additional financing. Generally, most measures are meeting the milestones outlined in their original implementation plans. In addition, staff has identified a variety of feasible financing options to further pursue and fmalize to ensure successful long- term implementation. OVERALL PROGRAJ.'\1 ADMINISTRATION Stakeholder Outreach As the new climate protection measures are implemented, staff continues to actively update interested stakeholders through website revisions, local newspaper po stings and public meetings. With assistance from the Communications Department, a bilingual outreach flyer (Appendix A) was produced and distributed in order to help explain the new climate-related programs and policies and encourage community support and participation. The City has also been contacted by other local governments and public agencies to inquire about Chula Vista's new climate protection measures and learn from its experience in climate change policy and greenhouse gas emissions reporting efforts. Emissions Tracking & Reporting Staff is currently compiling 2007 (calendar year) data to assesS Chula Vista's emission levels for both municipal operations and the broader cominunity. With this information, staff will be able to compare carbon emission values in 2007 with emission inventories from previous years. The City's 2005 Greenhouse Gas (GHG) Emissions Inventory documented a 35% increase in citywide emissions compared to 1990 mainly due to residential sector growth. However, the City did make significant progress in reducing annual per capita Climate Measures Implementation 6-Month Progress Report (February 2009) 1 of 21 12-6 emissions by 17% between the two inventory years and avoiding nearly 200,000 tons of GHG emissions annually. In addition, GHG emissions from municipal sources decreased by 18% mainly due to energy-efficient traffic signal retrofits. Staff anticipates returning to City Council in March 2009 with a completed 2007 emissions inventory. The City has worked with the California Air Resources Board, ICLEI and the California Climate Action Registry to formalize new greenhouse gas emissions reporting protocols specifically for local governments. These new protocols will enable Chula Vista to have greater accuracy and consistency in its emissions reporting and provide the scientific rigor necessary to comply with potential future regulatory standards. Staff anticipates utilizing these new reporting protocols for the City's 2008 emissions inventory. MEASURE #1 - CLEAN VEHICLE REPLACEMENT POLICY FOR CITY FLEET Overview Measure # 1 directs the City to require that 100% of the replacement vehicles purchased for the municipal fleet be high efficiency (hybrid) or alternative fuel vehicles (AFVs). However, factors such as the appropriateness for the vehicle task, fueling infrastructure, petroleum displacement, and the overall cost and environmental benefit must be considered prior to purchasing each replacement vehicle. Status Due to budget constraints, only five light-duty vehicles are being replaced this fiscal year, excluding police patrol sedans. Of the five vehicles being replaced, only one vehicle is capable of being replaced by a hybrid. This purchase will bring the total number of hybrids/ AFV s in the City's fleet to 14. The existing diesel-fueled vehicles in the City fleet will be converted to operate on biodiesel. This step can be implemented as soon as fuel storage tank capacity is addressed, since there is currently insufficient capacity available at the Public Works Corp Yard. Next Steps Staff has requested funding to install two 10,000-gallon fuel tanks at the Public Works Center as part of the City's Economic Stimulus Package submittal. If funding for this project is not approved, staffwill seek CIP funding for FY20091l O. MEASURE #2 - CLEAN VEHICLE REPLACEMENT FOR CITY-CONTRJ\.CTED FLEETS Overview Measure #2 directs staff to work with fleets under City authority to influence their expanded use of alternative fuels and high efficiency/alternative fuel vehicles (AFV) including electric, biodiesel, ethanol, hybrid, hydrogen and natural gas based on appropriateness for vehicle task, fueling infrastructure, petroleum displacement, overall cost and environmental benefit. Climate Measures Implementation 6-Month Progress Report (February 2009) 20f2l 12-7 Status Chula Vista Transit In September of 2008, the San Diego Metropolitan Transit System Board approved the purchase of five (5) 40-foot Compressed Natural Gas (CNG) buses for the Chula Vista Transit fleet. These buses are scheduled to be delivered in March 2009. Chula Vista had originally requested six (6) buses, but due to higher than expected costs, only five (5) were purchased. The City's transit fleet of CNG buses will increase from 85% to 90% with the arrival of the new buses. The transit contractor, Veolia Transportation, has also replaced 3 gasoline supervisor vehicles with gasoline/electric hybrid vehicles. Veolia is committed to replacing a total of five gasoline vehicles with hybrids. Due to long-term operational and maintenance issues, the Hydrogen Alternative Fuels Pilot Projects (Hydrogen van and HydrogenlNatural Gas blend buses) were unfortunately cancelled. The current economic downturn has forced Public Works staff to focus its resources on core municipal services. Street Sweeping The current contract with Cannon-Pacific expires June 30, 2011. Language will be added to the Request for Proposals outlining the City's new policy for AFV/Hybrid vehicles. Trash Hauler New Leaf, a biodiesel company that is starting up in San Diego, is just weeks away from producing fuel from used cooking oil. As a result,' full production and distribution of biodiesel to Allied Waste Services (A WS) is anticipated to start within the next couple of months. A WS is planning a full media campaign to announce their fleet's transition to the alternative fuel product and their new curbside cooking oil collection services which will provide the basic oil source to be refined. Tow Trucks The contract with the tow companies to provide police initiated tows expires June 30, 2011. Language will be added to the Request for Proposals outlining the City's new policy for AFV/Hybrid vehicles. Next Steps On January 15,2009, Metropolitan Transit System approved Chula Vista Transit's request for two (2) 40-foot CNG buses. These buses will replace two (2) existing 1995 diesel buses and would increase the transit fleet's AFV count to 95%. MEASURE #3 - BUSINESS ENERGY ASSESSMENTS Overview The measure, as adopted by City Council, would encourage through a new municipal ordinance commercial and industrial businesses to participate in an energy assessment of their premises. The measure is intended to help businesses identify energy efficiency opportunities at their facilities and, if desired, take advantage of applicable rebate and incentive programs for energy efficiency improvements. The assessments, which would be offered at no cost, would only apply to businesses with a physical storefront and/or office Climate Measures Implementation 6-Month Progress Report (February 2009) 30f21 12-8 and would be encouraged when a new license is issued or every three years for a renewed business license. Status In October 2008, City Council passed a new ordinance encouraging no-cost, voluntary energy assessments for commercial and industrial businesses. The energy assessments, which typically include an on-site review of a building's systems (i.e. lighting, cooling and heating), envelope (i.e. exterior windows, doors and insulation), office equipment, appliances, operational procedures and energy bills, will assist the businesses in lowering their monthly utility costs and consequently their contribution to greenhouse gas emissions and climate change impacts. The assessments also include a review of water conservation, alternative transportation and other practices which the participating business could implement and/or promote to its employees and customers. In order to streamline and improve its cost effectiveness, the voluntary energy assessment program was integrated into the City's business licensing process. Specifically, all business license application and renewal forms were updated and the City's Permits Plus tracking software was modified to incorporate the energy assessment program. Approximately 4,500 businesses which qualify for the free assessment (i.e. occupies a storefront or office) received a program flyer with their business license application or renewal form in December 2008 and the Department of Conservation & Environmental Services has already begun receiving inquiries from businesses who wish to enroll in the free assessment program. The business assessment program is currently funded through the City's Local Government Partnership with San Diego Gas & Electric (see Financing Options for more details). Next Steps The Department of Conservation & Environmental Services will be tracking the number of businesses who elect to participate in the voluntary program and the resulting energy saving opportunities identified through the completed assessments. Staff is also working with the multi-department CLEAN campaign and the Chula Vista Chamber of Commerce to launch a "Green Business" recognition program to further promote participation in the free energy assessments. MEASURE #4 - GREEN BUILDING STANDARD Overview As adopted, Measure #4 would mandate new and retrofit residential and non-residential projects to incorporate the requirements of the Housing and Community Development's (HCD) version of the California Green Building Standards Code (CGBSC), and to achieve carbon savings equivalent to exceeding current Title 24 by at least 15%. In addition, Council approved an in-lieu fee option where builders could pay a fee that equates to the cost of providing the required additional carbon savings which the City would then use 1:0 incentivize energy efficiency upgrades to older, existing homes. Climate Measures Implementation 6-Month Progress Report (February 2009) 4 of 21 12-9 Status Green Building Standards Measure #4's implementation plan includes the early adoption of HCD's green building standards with the exception of indoor water conservation measures. Staff excluded the indoor water conservation measures due to the fact that the State delayed the effective date of compliance to July 1, 2011 to allow manufacturers to increase the supply of low-flow products to meet demand. Staff researched the availability of the products and concluded that they are readily available now and since Chula Vista will be adopting the CGBSC before it takes effect throughout the State, the demand for the products in Chula Vista should have little impact on the overall supply. Furthermore, our region continues to deal with water shortage problems and it is prudent to expeditiously implement conservation measures that will help alleviate the situation. Therefore, staff will be proposing to include HCD's indoor water conservation measures in the City's new green building standards. Staff is planning on bringing the new green building and energy efficiency ordinances to Council in April 2009. Carbon Savings Benchmark Establishing a carbon savings benchmark as a means of compliance is an innovative concept and a new approach to energy efficiency. However, as staff worked on the details of the program, staff realized that it is ahead of its time and concluded that it will result in a program that is more complex than it needs to be. Furthermore, when staff fIrst proposed this approach, it was staffs understanding, based on the opinion of our consultant, that requiring the carbon savings equivalent to exceeding Title 24 by 15% would not require the California Energy Commission's (CEC) review and approval and that existing CEC approved software can be used by builders, with minimum modifIcations and the use of simple conversion factors, to demonstrate compliance. It turned out that CEC approval is required and verifying compliance is more complex and time consuming for both the builder and the City than what staff anticipated. Knowing that the CEC will have to review and approve the carbon reduction benchmark . program, staff forwarded copies of the draft ordinance, implementation plan and the Carbon Reduction Checklist to the CEC for their feedback. The following are the main issues raised by the CEC: 1. In order for the City to adopt and enforce standards that exceed the State's minimum. standards, the City must receive approval from the CEC. CEC approval is based on the City's ability to demonstrate that the proposed standards are cost effective. This cost effectiveness analysis is performed by using CEC approved software to compare life cycle costs with the estimated cost savings to be achieved by complying with the proposed standards. The determination that the standards are cost effective must be adopted by City Council prior to fIling with the CEC. The CEC review and approval process can take up to 3 months. 2. Existing local standards will only be in effect until July 31,2009, the day before the 2008 Building Energy Standards take effect. In order for the City to adopt and enforce local standards above the 2008 Standards, the City will have to fIle with the CEC as outlined in Item 1 above and the analysis will have to be based on the 2008 Standards. Climate Measures Implementation 6-Month Progress Report (February 2009) 50f21 12-10 3. The carbon emission reduction approach is new and therefore unfamiliar to the CEC. They typically see local ordinances that simply require a specific percentage above minimum State Standards. 4. The CEC also expressed concerns about the Prescriptive and On-site Renewable Energy compliance options proposed by the City. The CEC's concern with the Prescriptive Option, features with predetermined carbon savings, is that the carbon credits may be accurate for individual measures; however, randomly selecting prescriptive measures in order to accumulate the needed carbon credits may result in a reverse effect decreasing energy efficiency and therefore increasing carbon emissions. As for the On-site Renewable Energy Option, the concern is that it is inconsistent with the California Solar Initiative program which requires new construction to exceed current standards by at least 15% to receive incentives. Another concern is that it is rarely cost effective to install on-site generation without already having implemented other less expensive energy efficiency features. For the purpose of simplifying the program, while at the same time achieving an equivalent . level of carbon savings, staff will be proposing to only require projects demonstrate that they have exceeded Title 24 by a specific percentage. This compliance method is consistent with the structure, format and calculation methods of the California Energy Efficiency Standards and is simple and clear for the building industry to understand and staff to enforce. Based on discussions with the Building Industry Association (BIA), BIA requested that we consider offering a compliance option that is based on equivalent carbon savings so. that builders can use carbon savings realized from implementing sustainable community or site design measures toward meeting our standard. BIA indicated that such option would incentivize building sustainable communities. Staff is considering BIA's request and is looking into the details of such option. To assist the City with the implementation, SDG&E hired an energy consultant to perform the CEC-required cost effectiveness analysis and to assist the City with developing the required ordinance and obtaining CEC approval. The consultant will be paid out of SDG&E Partnership funds that are currently available to the City. The analysis will also benefit SDG&E and the region in that it can be used by other local jurisdictions that fall within the same climate zones and are interested in adopting more stringent local standards. Staff anticipates the analysis to be available by the end of February 2009. The determination of what is a reasonable percentage above the 2008 Energy Efficiency Standards (effective August 2009) will depend on the cost effectiveness analysis. The 2008 Standards are about 15% to 20% above current 2005 Standards, and for that reason, some of the jurisdictions that have adopted more stringent standards in the past, and a number of nationally recognized programs, are considering only requiring 10% to 15% above 2008 Standards for low-rise residential (single family dwellings and multi-residential less than three stories) and 10% for high-rise residential and non-residential. This would be an equivalent of 25% to 30% above current 2005 Standards. As noted above, staff is planning on bringing the new green building and energy efficiency ordinances to City Council in April 2009. Climate Measures Implementation 6-Month Progress Report (February 2009) 60f21 12-11 Miti!2:ation Fee Option Staff is proposing to drop the mitigation fee option as a means of compliance. This was intended to allow an in-lieu fee that equates to the cost of exceeding Title 24 by 15%. This fee would have been deposited into a fund that would be used to incentivize energy efficiency upgrades to existing homes. Staffs proposal to drop the program is based on the following: 1. The administrative and inspection costs associated with an energy efficiency incentive/rebate program were determined to be excessive and not fully recoverable. 2. The availability of funds would be unpredictable but staff would still be responsible to accept applications and maintain a database of approved applications in anticipation of the availability of funds. 3. The Department continues to go through budget cuts to eliminate non-core programs and this mitigation fee option would be a new non-core program which is not cost recoverable. It deserves mentioning that during the July 2008 Council workshop, the Environmental Health Coalition had concerns with this compliance option and preferred that all new construction meet the higher standards. Also, it is staffs expectation that new home builders would not utilize this option and would choose to invest the money in their projects by meeting the higher standards. This makes their homes more marketable and they can potentially recover the cost at time of sale. Green Awareness Proilfam The Development Services Department recently published the "Sustainability Center" website. The site is a work-in-progress and will be regularly updated and maintained. The following are some of its contents: 1. Information regarding the City's commitment and advancement in sustainable development, the Climate Change Working Group Measures and the Council-adopted implementation plan for Measure # 4 (Green Building Standards). 2. Links to green building books and publications that are available at the Chula Vista Library, and links to other green building/sustainability resources. 3. Information on SDG&E, State and Federal incentives and rebates. 4. Information on the proper operations and maintenance of heating, cooling and ventilation systems in commercial buildings. Staff is currently developing proper operations and maintenance information for homeowners. Future ordinances, policies and guideline"s resulting from the implementation of the green building standards will be published on the site. Furthermore, staff designated a "Sustainability Desk" workstation at our Development Services Counter to provide the public with information on sustainability, energy efficiency, recycling, SDG&E incentives and rebate programs and the California Center for Sustainable Energy's programs. Climate Measures Implementation 6-Month Progress Report (February 2009) 7 of 21 12-12 Policv Guidelines and Regulatory Amendments This portion of the measure consists of the following three components related to updating existing and establishing new design and regulatory provisions to ensure incorporation of sustainable practices and features into new larger-scale development projects; the Community Sustainability Program, Zoning and Design Guidelines, and the current and proposed efforts of the Chula Vista Research Project (CVRP) through the National Energy Center for Sustainable Communities (NECSC) and San Diego State University (SDSU) regarding a Community Site Design Program. Community Sustainability Programs - Staff is currently updating the guidelines for preparation of Air Quality Improvement Programs (AQIP) required of new development projects involving more than 50 dwelling units. Present AQIP requirements are out-of~date with regard to our current minimum energy savings requirements for new development as discussed above, and with regard to available programs and options for compliance. A draft update will be completed for internal review in March 2009, and be refined and fmalized parallel to the completion of the above noted cost effectiveness analysis of exceeding Title 24 standards. Staff will then forward the revisedAQIP Guidelines for Council consideration in April 2009. The intent is to ensure that contemporary AQIP Guidelines are in place prior to the submittal 'of the next series of SPA Plans in eastern Chula Vista as part of the South Otay RanchlUniversity Villages planning efforts. Zoning and Design Guidelines- As noted in the implementation plan, development of zoning standards and design guidelines for energy efficient communities is awaiting an analysis of fmdings from the CVRP conducted by the NECSC and SDSU. As discussed in the item below, staff is currently reviewing the report in order to discern the cost/benefit of various options before preparing any standards and guidelines for consideration. Staff will need approxirnately 60 days to review and assemble initial zoning and design proposals for review and further direction by City Council. Staff currently anticipates returning to Council in May 2009 with initial proposals. CVRP/NECSC Community Site Design Program- The CVRP centers around the evaluation of more energy efficient community design and building options using the Eastern Urban Center and Otay Ranch Village 9 as pilot models. The initiative modeled the energy-efficiency and emissions performance of alternative building energy technologies and site design features for the two projects. Although the CVRP was not specifically designed to generate low-carbon site development standards and guidelines, the modeling results do provide a firm foundation upon which to frame follow-up research to produce them. City staff have recently received the CVRP draft fmal report for review. After reviewing the report, staffwill form a Stakeholder Working Group to determine how the report's findings can be applied to the formulation of site development standards and guidelines. This work is currently envisioned to occur between March and June of 2009, with a proposal for consideration by the Planning Commission and City Council in the August-September 2009 tirneframe. Climate Measures Implementation 6-Month Progress Report (February 2009) 80f2l 12-13 In anticipation of release of the CVRPfindings, and with the intent of pursuing follow-up research, staff additionally worked collaboratively with the NEeSC and two eastern Chula Vista developers in preparation and submittal of an application to the CEC under one of their competitive research grant programs: The proposal included a second tier of building and infrastructure technology modeling and community design option evaluations in conjunction with the pending South Otay RanchlUniversity Villages project work. It also included a detailed scope-of-work and budget necessary to formulate the low-carbon site development standard and guidelines envisioned by CCWG Measure #4. Although the technical proposal received a high score in the competition, it missed being funded by one point (out of a thousand) in the fmal award process. At the suggestion of the CEC, the NECSC is considering resubmission of the proposal under one of the next research program solicitations expected to be announced in March 2009. The NECSC is also considering seeking the needed research funds from private development companies interested in the formulation of such a standard. If these solicitation efforts are successful later this winter, the proposed work will support the efforts of the above noted Working Group in developing workable modeling tools and design features for inclusion in a local Community Site Design Program. Next Steps Staff is planning on bringing the green building and energy efficiency ordinances to Council in April, and shortly after, submit to the CEC and obtain approval by July 2009. As stated previously, the energy efficiency ordinance can only take effect after the CEC has reviewed and formally approved the proposed local standards. In addition, both ordinances would have to have been filed with the Building Standards Commission prior to taking effect. The planned effective date of the requirements is the beginning of August when the 2008 Energy Efficiency Standards take effect. With regard to the Policy and Regulatory Amendments component, staff will bring updates to AQIP Guidelines to Council in April 2009, followed by a report on possible zoning standards and design guidelines in May 2009 based upon outcomes of the CVRP. The more comprehensive Community Site Design Program, also based on the CVRP results, will be presented in August-September 2009. MEASURE #5 - SOLAR & ENERGY EFFICIENCY CONVERSION PROGRA_l\1 Overview The "Solar & Energy Efficiency Conversion" (SEEC) program is intended to facilitate. widespread installation of renewable energy and energy efficiency upgrades by helping the average residential and commercial consumer overcome common institutional barriers, upfront capital costs and time constraints. The program's primary components include (1) Identifying the energy and water upgrades that help reduce ratepayers monthly costs, (2) Executing a competitive bid process that identifies participating contractors and establishes maximum prices and minimum warranty and service standards, (3) Aggregating participants geographically to harness their collective purchasing authority and maximize the potential for installation efficiency and savings, (4) Establishing voluntary special assessment districts to provide participants with a fmancing option to fund their improvements, (5) Climate Measures Implementation 6-Month Progress Report (February 2009) 90f2l 12-14 LiJ.iling local vocational job trammg in energy and water conservation with focused business recruitment and (6) Updating municipal codes to encourage renewable energy and conservation product installations and to remove institutional barriers. Status The Conservation and Environmental Services Department has taken the initial steps necessary to develop and implement a community energy retrofit program. Staff is currently working with Energy Engineers from the California Center for Sustainable Energy to outline the specific product specifications, installation costs, incentive amounts, energy reductions and monthly cost savings for various efficiency improvement (energy and water) options and solar energy installations. In September, the City hosted an "Industry Forum" for business community representatives, appliance retailers, energy efficiency contractors and solar installers to solicit input on program design to improve its cost effectiveness and to maximize local labor, manufacturing and retail sales opportunities. Additional feedback has also been garnered from representatives from local educational institutions in order to link vocational training and employment opportunities created by the program's implementation. The Building Division has modified Chula Vista's eXlstmg "Solar Hot Water Pre- Plumbing" ordinance to better defme the technical requirements and facilitate the future installation of the renewable energy systems on all residential units. Staff has also drafted, and Council has approved, a new "Pre-Wiring" ordinance to foster expansion of solar photo voltaic systems on residential buildings. Both ordinances will help reduce Chula Vista residents' installation costs and streamline the permitting process for solar energy systems. The City continues to improve its own facilities' ~nergy efficiency and expand its use of renewable energy technology. Over the past 2 years, Engineering staff with the assistance of the Conservation and Environmental Services Department have completed almost 30 retrofit projects at seven different buildings and installed a new solar hot water system at the Lorna Verde Pool. In addition, newly constructed municipal buildings have been designed to exceed State energy standards by at least 20% and incorporate renewable energy such as the new Civic Center Building's 30kW solar photovoltaic system. Next Steps City staff will continue to evaluate implementation options for a community solar and energy efficiency program. Specifically, staff will better refine the program's process for selecting homeowners' most cost effective energy improvements, maximizing their purchasing power through aggregation and "pre-qualifying" contractors and vendors to ensure high quality service. Staff will also determine the appropriate mechanisms for establishing voluntary assessment districts and for financing improvements through either private lenders or public bonds issuance (see Financing Options section for more details). F or municipal facilities, staff has already identified a number of additional energy improvement projects to potentially pursue over the next 3 years including inductive street lighting and integrated demand response processes. Also, staff is. currently drafting a Request for Proposals for large-scale solar energy system deployment at City facilities to dramatically lower operational energy demand, monthly, utility costs and carbon emissions. Climate Measures Implementation 6-Month Progress Report (February 2009) 100f2l 12-15 MEASURE #6 - SMART GROWTH AROUND TROLLEY STATIONS Overview As approved by the City Council on July 10,2008, the Implementation Plan for the Climate Change Working Group (CCWG) Measure #6, Smart GroW1:h Around Trolley Stations, consisted of the following four components whose status is presented in the follo'vving section: Urban Core Specific Plan (UCSP) Implementation, H Street Corridor Study, Southwest Specific Planes) and other Related Regional Efforts. The combined intent of. these efforts is to accomplish the remaining planning groundwork necessary to support realization of the smart groW1:h development densities and intensities envisioned in both the General Plan and the UCSP for the areas surrounding the ESt., H St. and Palomar St. trolley stations. Measure #6's specific actions and projects have already been approved by City Councilor will return for formal Council review and approval when appropriate. Status Urban Core Specific Plan Implementation This implementation plan component consists of two initiatives: the completion of a coordinated site development program for the area surrounding the E St. trolley station and the completion of a visual simulation model with SANDAG depicting what development intensification of the area would look like. The visual simulation for redevelopment of E St. trolley station area was completed under the SANDAG grant in August 2008, and is available for viewing on both our City website and SAJ."illAG's website. From a vantage point .at the intersection of E St. and Woodlawn Ave. looking west, the simulation uses photo-realistic images to depict, in phases, what mixed use redevelopment and intensification of the area might look like. Pictorial representation of eventual trolley grade separation is also included. Regarding the E St. IF A site development program, in order to ensure successful development of a high intensity Transit Focus Area (TF A), the program effort was to focus on the joint coordination and planning needed for a range of considerations includrng infrastructure, circulation, site design, building massing and parking. Having a coordinated assessment based on conceptual development for the larger superblock around ESt., 1-5, Woodlawn and F St., will enable the City to process and consider individual projects while ensuring a cohesive end result. Under an ENA (Exclusive Negotiation Agreement) with Galaxy Commercial Holding, LLC, originally approved in November 2007, City staff was working during 2008 with Galaxy's development team in reviewing a series of evolving development concepts for the City's old corporation yard site and the larger surrounding E St. TF A. A working session with the CYRC was held in August 2008 to provide an overview of the work, and a clear understanding of the development challenges for the site. Due to market and fmancial shifts, Galaxy had to abandon. original plans focused around higher-rise residential development, in favor of attempts at a mid-rise rental residential focused development which also ultimately was not fmancially feasible. The ENA and planning efforts subsequently expired on November 8, 2008, despite an extension of the ENA and attempts to come up with a feasible development on the old corporation yard site. At this time, Redevelopment Agency staff is in communication with the Metropolitan Transit System (MTS) regarding joint City and MTS participation in highest and best use Climate Measures Implementation 6-Month Progress Report (February 2009) 11 of 21 12-16 analysis for the properties. Planning and Redevelopment staff also submitted a proposal in. February for funding assistance in support of these plaIL11ing efforts under SMTIAG's Smart Growth Improvements Program. An insight gained through the work with Galaxy is that the minimum zoning requirements for the area under the current UCSP may exceed what is market-feasible for development, particularly in the near term. The minimum floor-area-ratios (FAR) of 4.0, and lot coverage of 60%, generally result in minimum 8 story buildings which are not currently market supportable. The ability to have a mix of building heights ranging from 3 to 8+ stories may be key in fostering development of the site in the nearer term. Staff will evaluate this as part of continued site development program efforts with MTS and others, and may suggest zoning amendments, if warranted. H Street Corridor Studv This implementation plan component consists of three initiatives: the Urban Land Institute program, potential General Plan a,nd/or UCSP amendments, and completion of a 3-D visual simulation model with SANDAG of what a redeveloped corridor might look like. In July 2008, the Redevelopment Agency proposed sponsorship to provide $120,000 in funding for an Urban Land Institute (ULI) panel that would bring planning and real estate experts to Chula Vista to conduct a five-day Advisory Services Program in October 2008. The Program uses a public charrette-type process to identify and address. relevant issues/challenges, and provide an implementation strategy for the revitalization of the Corridor. Considering the amount of public questions surrounding the effort, the Chula Vista Redevelopment Corporation and City Council chose not to pursue the Program at this time, but left open the option to do so in the future. Dependent upon the outcomes of the ULI (or other) study work, the second initiative was to pursue any General Plan and/or UCSP amendments necessary to implement study recommendations. This work will occur as needed at such time as a study is completed. The third initiative to prepare a 3-D visual simulation of the Corridor is underway with SANDAG and their consultant per the approved grant. Although originally projected for completion in NovemberlDecember 2008, staff agreed to a request bySAJ"IDAG to switch scheduling slots with another jurisdiction. Change in the schedule was not problematic considering the postponement of the above ULI work. Staff received a partial product in January for review, with the final simulation expected for completion in March 2009. Southwest Specific Planes) Development Planning staff is currently refining a work program to begin a series of Design Workshops for each of the five planning focus areas within the Southwest (as identified in the General Plan); Southwest Town Center/Third Avenue, Main St., Palomar Gateway, Broadway and West Fairfield. The workshops are the first step toward preparation of Specific Plans, and will be used to discuss and develop a localized vision plan for each of the areas, along with design principles and guidelines that will form a foundation for the subsequent Specific Plans. Considering budget circumstances, a decision was made in November 2008 to accomplish the work with internal staff rather than consulting services as Climate Measures Implementation 6-Montb Progress Report (February 2009) 120f21 12-17 originally envisioned. Ihe Redevelopment Agency has approved funding for the work in the current fiscal year 2008-2009. Staff is designing the format and materials for the workshops, and preparing an initial needs assessment using the outputs from the Southwest United in Action Program. A series of Design Workshops for each of the focus areas are anticipated over the next six months. Using information from the workshops, staff will develop a work program for proceeding. with detailed Specific Planning work in one or more of the focus areas depending upon issues, complexity and public input. Staff anticipates bringing that work program to the City Council by July 2009. Other Related Regional Efforts This implementation plan component consists of two initiatives: the 1-5 Corridor Study with SANDAG and Caltrans and funding to accomplish grade separation of the trolley line at E and H Streets. This Corridor Study is a prerequisite in the planning and design of future transportation improvements along the 1-5 corridor necessary to ultimately serve development in western Chula Vista and the Bayfront. The improvements encompas-s highway travel lanes, HOV and transit, as well as reconfiguration of ramping, the bridge decks and grade separation of the trolley crossing at E and H Streets. Because considerations for one component affect the rest, the Corridor Study serves as a mechanism to review and address the interrelationships prior to proceeding with the next phases of design. In November 2008, the City Council approved an MOU with SANDAG to conduct the Study. Necessary paperwork submitted by the City was processed and approved by Caltrans in December 2008, and the City received notification from Caltrans in early January 2009 of Federal Highway Administration authorization to proceed with the Study. Staff is currently finalizing the contract with SANDAG and their consultant, and expects that the Study will commence in late January. The Study will take approximately 24 months to complete (February 2011), and staff plans a series of periodic briefings as various milestones are reached. Regarding trolley grade separation funding, the City received notice in October 2008 that it was not successful in its application for grant funding with the California Public Utilities Commission (CPUC). The primary reasons are that the funding gap exceeded the $5 million/project maximum, the project did not have environmental clearances and the project could not be built by a 2012 horizon. The City's proposal was, however, the highest ranked project without environmental review. Staff will continue to work with SANDAG and others on grant funding, including continued participation in the CPUC's ongoing grant programs. Next Steps Staff will continue to implement Measure #6 by performing the following tasks over the next 6 months. The City will continue discussions with MIS regarding a joint-site planning effort for the E St. IF A properties, and should know by May 2009 if we were successful in obtaining the SANDAG grant for planning assistance funding for the E St. IF A efforts under the Smart Growth Incentives Grant Program. As part of those planning efforts, staff Climate Measures Implementation 6-Month Progress Report (February 2009) 13 of21 12-18 will also evaluate whether any changes to UCSP zoning standards are warranted to promote development of the E St. TF A. Staff will await any further direction from the City Manager regarding commencing the H Street Corridor Study. Staff will continue working with SANDAG and their consultant to complete the grant funded 3-D visual simulation for the H Street corridor by March 2009. With regard to Southwest Specific Planning, staff will conduct the five Southwest focus area Design Workshops beginning in February and completing in June 2009. Following the workshops, staff will present a work program to Council for a Southwest Specific Planes) by July 2009. Finally, a contract with SANDAG to commence the 1-5 Corridor Study will be completed by late February 2009 and staff will continue to seek additional funding for the E and H Street trolley grade separations. MEASURE #7 - TURF LAWN CONVERSION PROGRAM Overview Because water movement and treatment requires a large amount of energy and subsequently is a major contributor to greenhouse gas emissions, Measure #7 is intended to help residents and businesses replace turflawn areas with drought-tolerant plants (commonly referred to as "xeriscape" or "WaterS mart" landscaping). Specifically, the program's components include (1) continuation and expansion of the NatureScape program to promote water conserving and nature-friendly landscaping, (2) coupling .of residential and business turf laWn replacement with the solar conversion aggregation block process (Measure #5), (3) converting select municipal facilities to low water use plantings and irrigation, and (4) updating various municipal landscape regulations and guidelines to comply with new state requirements and further promote outdoor water use efficiency. Status The Conservation and Environmental Services Department continues to implement its community-based NatureScape program which promotes nature-friendly landscaping by educating residents and businesses through free on-site assessments of their properties to evaluate wildlife-friendly and water-conserving features. City staff also educates participants about possible water-saving improvements and available incentives and rebates, if applicable. Properties which successfully meet the program's requirements are certified through the National Wildlife Federation's "Backyard Wildlife Habitat" program and receive an aluminum yard sign and certificate. To date, staff has performed over 100 on- site assessments for property owners through the program's current limited funding source. The City's Engineering and Planning staff have begun to review the updated Model Landscape Ordinance which was recently released by the Department Of Water Resources (DWR). The Model Landscape Ordinance outlines new statewide water-conserving landscape design criteria which local governments will be required to adopt by January 1, 2010. The ordinance would generally apply to landscaping for all new developments with total project landscape areas equal to or greater than 2,500 ft2 and to re-Iandscaping of some existing properties (certain property types are exempt), and would base design thresholds on a maximum water allowance. Climate Measures Implementation 6-Month Progress Report (February 2009) 140f21 12-19 Both the community and municipal turf conversion programs aim to replace turf lawn areas with water-saving plants and irrigation systems. Besides reducing carbon emissions through reduced water consumption, the re-landscaped areas would help lower monthly utility costs and landscape maintenance costs. Currently, there is no available funding for. either turf conversion program, so implementation has been limited. Next Steps City staff will continue, as funding permits, to enroll property ovvners in the Chula Vista NatureScape program and certify their yards and gardens through the National Wildlife Federation. Staff will also work over the next 6 months to update the City's existing landscape regulations and manuals to meet and potentially exceed the new statewide Model Landscape Ordinance. The updated regulations will strongly emphasize additional outdoor water savings by further minimizing turf lawn areas, using water-wise plant types and installing weather-based and low-water irrigation systems. Finally, a limited residential turf conversion program may be launched if federal or state grant funding becomes available. IMPLEMENT A nON FINANCING The new measures' full implementation costs are estimated at $1,286,380 and $2,275,152 in one-time and annual costs, respectively (Table 1). In the Council-approved implementation plans, staff outlined various fmancing options to support full implementation of the new climate protection measures. Over the past 6 months, staff has pursued these options to better understand their feasibility and identify the necessary next steps. SDG&E Local Government Partnership Since 2006 Chula Vista and San Diego Gas & Electric (SDG&E) have been jointly . implementing programs to reduce energy consumption at municipal facilities and in the community through their Local Government Partnership. The funding is provided through a "Public Goods Charge" which is a monthly utility bill surcharge on energy consumed by every customer in SDG&E's territory. As part of its 2009-2011 Energy Efficiency Program Portfolio (EEPP), San Diego Gas & Electric has included $4.6 million (3-year total) to continue the Chula VistafSDG&E Partnership. The EEPP is reviewed and ultimately approved by the California Public Utilities Commission which has notified SDG&E that there will be delays in approving the new EEPP. As a result, the new Chula VistafSDG&E Partnership's funding will most likely be delayed until June..2009. In the meantime, SDG&E has committed to providing $91,968 in monthly "bridge funding" to the City until the new funding is approved. The 2009-2011 Chula VistafSDG&E Partnership funds will provide support for staff time (salaries and benefits for 6 full-time and 7 part-time staff members) and program costs to continue partial implementation of Measures #3, 4 and 5. While the Partnership is providing critical current funding for these measures, there are restrictions on how the funds are used (such as no capital improvement expenditures) and there is no guarantee of future funding availability making long-term program implementation unreliable. Climate Measures Implementation 6-Momh Progress Report (February 2009) 15 of 21 12-20 Table 1: Summary of Council-approved climate protection measures & their estimated implementation costs Admin. Emissions Tracking & Reporting Track progress in reducing carbon emissions.through ICLEI and California Climate Action Registry program participation $93.300 100% Clean Vehicle Replacement Policy for City Fleet 100% Clean Vehicle Replacement Policy for City- Contracted Fleet Services Replace vehicles through the purchase or lease of alternative fuel and hybrid vehicles $200,000 $160,000 2 Work with current and future vendors to include a "Clean Vehicle" replacement policy into the bid and contracting process 3 Through an ordinance addition, encourage businesses Business Energy Assessments to participate in a no cost assessment as part of the business licensing process $321,401 Through a building code revision, require new and 4 Green Building Standard renovated buildings to increase their energy efficiency $235,000 $647,500 and meet statewide green building standards Provide a cost-effectve, streamlined mechanism for 5 Solar & Energy Efficiency property owners to implement solar and energy $75,000 $347,801 Conversion' efficiency upgrades and create a municipal code requiring pre-wiring for solar electric systems 6 Smart Growth Around Trolley Implement the 'smart growth' design principles outlined $620,000 Stations" in municipal planning documents Outdoor Water Provide a cost effe'clive, streamlined mechanism for 7 Conservation'" installing water saving plants at private/public sites and $156,380 $705,150 create new municipal landscape regulations TOTA $1,286,380 $2,275,152 , In addition to annual costs presented, implementation of measure #5 would require issuance of a public bond to cover upfront capital costs for solar and energy efficiency upgrades .. The City has already secured approximately $2 million for related regional smart growth efforts such as the 1-5 Corridor Study '" Total annual costs for measure #7 include $202,800 for NatureScape & Residential/Business Turf Conversions, $300,000 for Municipal Facilities Turf Conversions and $202,350 for Landscape Regulations Update & Implementation Energy Franchise Fees Currently, the City collects a franchise fee of 1,25% and 2,00% of citywide electricity and natural gas sales, respectively, regardless of energy provider. An increase of 1 % in both electricity (adjusted rate = 2.25%) and natural gas (adjusted rate = 3.00%) fees would generate approximately $2.2 million'in additional revenue (Appendix B) and meet 98% of the ongoing funding needs for climate protection measures implementation, For reference, the City of San Diego's rate is currently set at 6.88% for electricity sales and 2.03% for natural gas sales. Because franchise fees are based on each individual ratepayer's consumption level, it also helps promote energy conservation in the community by rewarding ratepayers who consume less energy with lower fee amounts. Finally, the new Climate Measures Implementation 6-Month Progress Report (February 2009) 16 of 21 12-21 revenue generated vvilllikely increase in the future as energy prices rise due to inflation and other market forces. To increase the energy franchise fee, the City would need to renegotiate the terms of its 2005 Memorandum of Un cierstan ding with SDG&E. A renegQtiated rate may also need to be vetted through a Propo'sition 218 review process. and may- berequired :tQreceive simple' majority voter approval. " . ' Local Fee Authority A local fee authority has been granted in the past by the State legislature to enable local governments to fund environmental programs and services. For example, Chula Vista received fee authority under Assembly Bill 939 (Integrated Waste Management Act of 1989) to fund municipal solid waste, recycling and household hazardous waste programs eliminating their need for General Funds. A climate change~related local fee authority could be tied to energy, water and/or waste consumption levels and collected on the applicable monthly utility bills (see Appendix C for example legislative language). Similar to the energy franchise fee, a local fee authority would help foster conservation by rewarding residents and businesses who consume less resources (and have lower carbon emissions) with lower fee amounts. The City has had preliminary discussions with staff members from various state representatives' offices to assess interest in supporting fee authority legislation. Generally, most state representatives' staff members were supportive of local greenhouse gas emissions reduction efforts and recognized the need for a reliable, long-term funding source. To further pursue this option, the City would have,to work directly with Chula Vista's state representatives to draft the specific bill language and garner political support from other municipalities and state officials. Dependent on the legislation, a local fee authority may also need to be vetted through a Proposition 218 review process and may be required to receive voter approval. Building Permit Fees , , Development fees could be increased to cover the additional costs associated with implementing a citywide, mandatory green building standard (Measure #4). The extra costs are attributed to the need for enhanced staff training on energy efficiency, renewable energy and sustainable building technologies and for expanded permitting and inspection services. Currently, the Finance Department is evaluating the necessary fee levels to fully fund the City's broader development-related services. As part of this study, the City will be able to specifically assess the additional costs from a mandatory green building program and revise the fee schedule, as needed. It should be noted that permit fees are directly linked to development levels and may not provide a consistent, long-term funding source for the program. Bonds A public bond issued by the City and secured through increased sales tax, transient occupancy tax and/or property taxes could quickly provide large, upfront capital improvement funds required to implement some of the seven measures. The bonds could have two specific applications: (1) provide capital funds for energy efficiency and solar Climate Measures Implementation 6-Month Progress Report (February 2009) 17 of 21 12-22 retrofits for residential and business facilities (Measure #5) and (2) provide funds for public purpose climate-related programs such as municipal renewable energy installations, alternative fuel fleet improvements and turf conversions. Under application #1, participating property owners would elect to be part of a special assessment district and their increased property fees would be applied to the bond's debt service. Under application #2, all Chula Vista property owners would vote in a general election whether to authorize a municipal bond issuance. Over the past 6 months, City staff has further investigated the process and nuances of bond issuances for climate protection measures implementation. Staff has met with representatives from private financing institutions and consultant groups on how to structure public bonds to provide cost effective carbon-reducing programs, services and capital improvement projects. Grants City staff have been tracking and soliciting potential grant funding from a variety of government agencies. At the federal level, Chula Vista has submitted a comprehensive list of public improvement projects as part of the Economic Stimulus Package process. In addition to these potential projects being designed to incorporate "green" construction applications and reduce greenhouse gas emissions, some projects (such as the Public Works Yard's new biodiesel tanks) are directly related to the Council-approved climate measures implementation plans. Chula Vista may also be eligible to receive federal "Energy Efficiency & Conservation Block Grants" (EECBG) which were included in the recent Economic Stimulus Package. The EECBG would help the City support numerous climate- related programs such as fmancial incentives for energy efficiency improvements, building codes and inspection services to promote building energy efficiency and renewable energy installations on municipal facilities. At the State level, there is potential funding for alternative fuel infrastructure as a result of Assembly Bill 118 (Alternative Fuels and Vehicle Technologies Program). The approved bill provides funding for fueling stations .and vehicle fleet retrofits to help expand the deployment of alternative and renewable fueling technologies. AB 118' s specific regulations and funding criteria will be finalized by the California Energy Commission at their February 25, 2009 meeting. In addition, the City will continue to access the low interest loan program from the California Energy Commission to facilitate the installation of energy efficient and renewable energy technologies at municipal facilities. The loan program provides the capital needed for the energy technology improvements and the resulting energy cost savings are used to repay the debt service. The federal and state grant opportunities outlined above could provide partial funding for Measures #1, 2, 3,4 and 5. While these resources would help implement these measures, the funds would be most applicable for one-time costs and capital improvement expenditures due to their short-term nature. Climate Measures Implementation 6-Month Progress Report (February 2009) 18 of 21 12-23 APPENDIX A - Climate Measures Outreach Flyer (English Version) 'i'!8:t~~Jlf~~;;~:}:~~~,;L7!~~~~ :~{,;,~~~,~~v~1,~';~:~~?~q-~~,i~t{~ '_ e'C(i:lffiPTIl 'iltB~~~~tJ; .. , . The City of Chula ViS'ta IS committed to. ImprovIng the communlty's en'tlro-nmental health by reduc:ing the City's greenhouse gas emlssions or ,"Carbon Footprint" These emiSSions are mainly caused by burning fossil fuels to power homes. offices and vehicles. Below are some of the ways that Chula Vista is working to. lower its carbon efTHSSIOn:i wbjle helping to. _create less congested streets, deaner air and reduC:edenergy:'costs, il'l:tlJ,e:-, communfty :'<'; :-~. ,~'.<,",)\\:):' . Alternative Fuels ~ Th;e'Ci'ty has begun replaCing Its older fleet vehicles with hybrid and , 'alternative fuel vehicles. These new vehicles help reduce fuel costs and. ',pl:_odtice ress air pollutton. The City is also encouraging other fleet companies , jt!-~he,om~unity to switch to cleaner vehIcles . Cr'een .Buildinqs. " C:l):ula-Vlrta.is the firs.tcommunJt'~ in San Diego COUrT:tj to require new _ _ y bHiI~in~ ~o incorporate "'green" features whk:h lower ~nergy use, consen<e-', '" .wat~r,and'(;rea,te' more heaLthr indoor spac~. ,. ' ~, " ; , '._>l , ~"",.,' ,;_W ,;:'"" ,~_:,,' ,_. ,,-,' :''transit arid Walk-FrfendlYCommunities :, " Chura VIsta is dedicated to 4esigning, res:ldentlal ~reas tha~ ~cotJ...age walki ng ',.,?on? ar:efmK~ h? pubHc tra,n5portation,.-'espedaUy'tne E?treet, ' " ~~, - {t s:tr~i-,and'palom~rij-ol!e.y.~^t?tio_ns;,:" "," ~ ,: ,r; ;~,,; '~ " ';': /': :;, " ':.::." ,,' Sb:;~~EI1~rgy;&)~nergVEfficiencyi <':',. , . Susides'5 ~ncrg~l...,.a.s$C$>hr'~nl3:' ',,', ',:'," '. ' :~ ,';',,:+<:.{,:' q.' ';-"'1 ; :~~ p~rt?f.~ bt!Siri,eSrna~flSe'?ro<ess. tl,le'Cit-i Is:,O~!ii1g~fr~-en~rgy:" " ~,- ;:Wt~~I];:?~::'1;~~;"' .."qfder,,~6~~'an~ Dusir:r~ses. ~l}~ <h,~r~a'yista:~~v~t!1~~re~~es~.pote~ti?t ~~ r~:' , ~;wer:'th~r'~~er9Y u~ and::.to s-a,ve 9P-thetr.,r:nan~~y -utl1rty, oll!5-.., "yhe'(lti ~" -:~,~~~oping'd new CO,rt1l'ryu!f!t;t;p-rog.rail: to_provide,~asy~ :affO\~dabl:i,'N.a'ts/ .~.~:t~~~~~~ tienc~ ~p(rr:t a':"tn~111:2~1~r.0~ej?'<1~r~:': J'&l1tcfoor Water Con-s~rvatio":: ,:, - :,; s,t:rf'~-c:la 'Yi~!b?u,seryp,l,~ 'fI!ate(!S'JTl~Y l;!~~ to jrrg~e6rJ~~~:Ia-.<<r'!"ar~~' ',' ,'q~t~'wor~g,or-ra nC\.>V,cqrnmurntt p.r~r~mto<\1<;:!prcs~den~and: :~:'. '~~#~~~~'~~~~~~~:)1%r~~:~i(7:7~if?~~[:t'f:i;~~i~~~~t,~~,' Climate Measures Implementation 6-Month Progress Report (February 1009) 190f21 12-24 'i"O ~ff g ~ &'" 'U~ 3 '" ~ ~ '" Ei '" '" '" '" ~S '8~ ::! B ~g :}fJ ;:1 ~. ~ g IV o o '" '-' CHULA VISTA-FRANCHISE FEE INCREASE ANAL YSIS .. DRAFT Customer Impa.ct Examples & Revenue Increases Updated: December 5, 2008 Monthly Baseline (kWh) ELECTRICITY .Monthly Us.'(kWh) 500 . Estimated Cost" $76.39 Monthly Baseline (Therms). 15 NATURAL GAS Monthly'Use (Therms) 50 Es\imated Cost" $69.35 Estin;at~d Total Cost $147.74 BASELINE.. No Chan.geU $1.56 J FRANCHISE FEE .. (Elec-l:10%; NG ~ 1.00~\I) 0.50% $3.11 O:~5o/; $3.47 1.00% $3.64 1.25%- $4.21 1.50% $4.58. 1.75%. $4.95' ,:2.00'%. $5.32 . ; .Sased on SlUnmer..raf~ s[;h~dules & iridudes\~ominodily, UDC, ba~jc-servjces & demand charges.; i .' . 1 "Baseline Franchisa:~ee values are derived fr~m what Chula. Vista customers are actually paying:ilot the fe"e'rale (1.25% EI(tc., 2% NG) articulated In the SDG&E MOU. Chula'Vista customers I are currently paying the SDG&E'lerrjlo(y~wjde fee 011.1% (Elec.) and 1% (NG) except tor non-SOG~E supp!ied'energy. I . . . . I ".Assumes 40 kW monthly ma~imull) demand.. 1 .' ". I i^Eslimaled City revenue increase b~sed on 2007 energy sales - $131,4"16,052 (Elee) and $91,840.14B.(NGr ~ which includes imputed val!-les from relail wheeling. and willlikeltchange lor 2008 I I due lo already-approved en~lgy fate changes. ! I , t~~~~~~~XjmalelY ~~,:~~~~~~~~~~ Fee revenues lrom naIUral~g~~,.~~~ ,atlribUlable to power generating la~il~ljeS (ex. Sou,lll Bay Power Plant an<1 Main Slreel Pe&ker Planl) within ChU~~~~i~,~a~._ _ne ~ J -' N I N C11 FRANCHISE FEE INCREASE AMOUNTS (for both Elac. &: NG) 10 o o H) N $657,060.26 $965,620,39 $1,314,160.52 $1,642,700.65 $1,971,240.78 $2,299,760.91 $2,628,321:04 . $459,200.74 $686,801.11 $918,401.48 $1,148,001.85 $1,377,602.22 '$1,607,202.59 $1.836.802.96 $1,116,281.00 $1,674,421.50 $2,232,562.00 $2,790,702.50 $3,348,64300 $3,906,983.50 $4,465,124.00 ~ '"'C M ~ ~ ~ I ~ '"1 ~ =:I /") ::r _. Vl tl> ~ tl> tl> ...... =:I /") '"1 tl> ~ Vl tl> > =:I ~ q' Vl _. Vl B '"1 ~ :+> '-' APPENDIX C - Example Local Fee Authority Legislative Language (Adapted from Existing AB939 Code) PUBLIC RESOURCES CODE SECTION XXXOO-XXX04 - XXXOO. Each city and county sh411 demonstrate a funding source, or sources, available to pay for preparing, adopting, and implementing the Greenhouse Gas Inventorv. Reduction and Adaptation element or plan as required by this part. XXXOl. A city, county, or city and county may impose fees in amounts suffiCient to pay the - costs of preparing, adopting, and implementing a countywide integrated Climate Change Plan W0:3t;; management plm prepared pursuant to this division. The fees shall be based on the types or amounts of carbon equivalents the solid '~Ii.l:ste, and shall be used t6 pay the actual costs incurred by the city or coup.ty in preparing, adopting, and implementing the plan, as well as in setting and collecting the local fees. In determining the amounts of the fees, a city or county shall include only those costs directly related to the preparation, adoption, and implementation of the plan and the setting and collection of the local fees. A city, county, or city and county shall impose the fees pUrsuant to Section ~ of the Government Code. XXX02. A local agency may directly collect the fees authorized by this chapter or may, by agreement, arrange for the fees to be collected by the agencv a solid waste hauler providing energy. water. waste and/or sewage service solid ';,-a.stc colleetioll. for the city or county. XXX03. A city or county may assess special fees of a reasonable amount on the importation of waste from outside of the county to publicly owned or privately owned facilities.-' No city or county shall export solid waste to any other jurisdiction unless the exporting city- or county has, within one year following the date specified in Section 41791 or a later date established - or permitted by the board, an approved city or county household hazardous waste element and a source reduction and recycling element which have both been implemented, or have submitted a countywide integrated waste management plan, and is in compliance with it, provided, however, that, until one year following the date specified in Section 41791 or a later date established by the board, nothing herein shall be construed as prohibiting the export of solid waste. The board may waive the requirements of this section if the board determines that all additional reasonable source reduction and recycling programs are being implemented in the city or county or if the board determines that the system to export waste supports or enhances the city or county source recovery and recycling element. Climate Measures 1-nplementation 6-Month Progress Report (February 2009) 210f21 12-26 ~~f? ~ -- ~ ATTACHMENT B CITY OF CHULA VISTA CLIMATE CHANGE WORKING GROUP MEASURES IMPLEMENTATION PLANS July 2008 (Revised) SUMMARY In May 2007 staff reported to City Council that Chula Vista's citywide greenhouse gas emissions had increased by 35% (mainly due to residential growth) from 1990 to 2005, while emissions on a per capita basis and from municipal operations decreased by 17% and 18%, respectively. As a result, the City Council directed staff to convene a Climate Change Working Group (CCWG) to develop recommendations to reduce the community's greenhouse gas emissions or "carbon footprint" in order to meet the City's 2010 greenhouse gas emissions reduction targets. The CCWG - comprised of residential, business and community-group representatives - selected seven measures which City Council adopted on April 1,2008. This report outlines City staff's strategy (summarized in Table 1) to implement the measures and includes an analysis of each measure's funding needs, financing options, timeline and performance criteria: Table 1: Summary of proposed climate-related programs and their estimated implementation costs Track progress in reducing carbon emissions through Administration Emissions Tracking & Reporting ICLEI and California Climate Action Registry program $93,300 participation 100% Clean Vehicle Replacement Replace vehicles through the purchase or lease of $350,000 $160,000 Policy for City Fleet alternative fuel and hybrid vehicles 100% Clean Vehicle Replacement Work with current and future vendors to include a "Clean 2' Policy for City-Contracted Fleet Vehicle" replacement policy into the bid and contracting $43,000 $144,000 Services process Through an ordinance addition, encourage businesses to 3 Business Energy Assessments participate in a no cost assessment as.part of the $321,401 business licensing process Through a building code revision, require new and 4 Green Building Standard renovated buildings to increase their energy efficiency $235,000 $647,500 and meet statewide green building standards Provide a cost-effectve, streamlined mechanism for 5 Soiar & Energy Efficiency property owners to implement solar and energy efficiency $75,000 $347,801 Conversion- upgrades and create a municipal code requiring pre. wiring for solar electric systems 6 Smart Growth Around Trolley Implement the 'smart growth' design principles outlined in $620,000 Stations- municipal planning documents Provide a cost effective, streamlined mechanism for 7 Outdoor Water Conservation installing water saving plants at private/public sites and $156,380 Sl05,150 create new municipal landscape regulations TOTAL $1,479,380 $2,419,152 . In addition to annual costs presented, implementation oi measure #5 would require issuance oi a public bond to cover upfront capltai costs ior solar and ener~y efficiency upgrades - The City has already secured approximately $20.3 million for reiated regional smart growth efforts such as the i-5 Corridor Study and the Trolley Grade Separations (E St. & H St.) CCWG Implementation Plans (As Adopted by City Council) I of 58 July 1, 2008 12-27 OVERVIEW Since the earlyl990s, Chula Vista has been engaged in multiple climate change forums including the United Nations Framework Convention on Climate Change, the ICLEI Cities for Climate Protection campaign and the U.S. Conference of Mayor's Climate Protection Agreement and has pledged to reduce its greenhouse gas (GHG) emissions or "carbon footprint" 20% below 1990 levels by 2010. To accomplish this carbon reduction goal, the City adopted a Carbon Dioxide (C02) Reduction Plan in 2000 which outlined steps for Chula Vista to reduce energy consumption, promote alternative transportation and design transit-friendly, walkable communities. Recently, staff conducted a GHG emissions inventory for 2005 to evaluate the City's progress in reaching its emissions goals. The 2005 inventory indicated that Chula Vista's annual citywide GHG levels had increased by 35% since 1990 due primarily to residential growth. Durillg the same period, the City did make significant progress in reducing annual per capita emissions by 17% and avoiding nearly 200,000 tons of GHG emissions annually. In addition, GHG emissions from municipal sources decreased by 18% mainly due to traffic signal energy-efficiency improvements. As a result of the 2005 Greenhouse Gas Emissions Inventory Report, the City Council directed staff to convene a Climate Change Working Group (CCWG) to develop recommendations to reduce the community's greenhouse gas emissions or "carbon footprint" in order to meet the City's 2010 greenhouse gas emissions reduction targets. The CCWG - comprised of residential, business and community-group representatives _ reviewed over 90 possible carbon-reducing measures from July-2007 through March 2008. The group. evaluated these measures based on five primary criteria: 1) the measure had been previously implemented successfully by an ICLEI local government or Califomia Climate Action Registry business, 2) the measure would be fmancially feasible (i.e. require little or no. additional General Fund support), 3) the measure could be quickly implemented to have immediate impact on the City's efforts to reduce emissions by 2010, 4) the measure's impacts could be quantified using the City's emissions inventory protocol and 5) the measure would not cause a significant adverse community impact. From this analysis, the CCWG selected seven measures (see Table 1) to recommend to City Council. Council adopted all the measures on April 1, 2008. This document outlines the City's general strategy for implementing the seven measures, for fmancing their further design and implementation and for tracking the resulting emissions reductions at municipal operations and citywide scales. In addition, each measure's specific implementation plan provides further clarification and includes the following sections: Overview - A review of the original CCWG recommendation and how it relates to the proposed program/policy Program Strategy - An in-depth description of the programmatic approach for implementing the proposed program/policy including outreach activities and required municipal code or regulatory steps Performance Metrics - The metrics which will be tracked and reported to quantify the performance of the program/policy and its impact on GHG emissions CCWG Implementation Plans (As Adopted by City Council) July 1,2008 2 of 58 12-28 Timeline - A general timeline of important milestones as the program/policy IS implemented Budget & Financing - The required funding to implement the program/policy as proposed by City staff STAKEHOLDER OUTREACH Since City Council approved the Climate Change Working Group's recommendations on April 1, 2008, staff has met with a variety of additional community and stakeholder groups. These meetings were designed to allow interested parties an opportunity to provide feedback on the development and implementation of the seven Council-approved measures. Stakeholder groups included: Building Owners & Managers Association Board of Appeals & Advisors Brehm Communities Building Industry Association (Green Building Task Force) Chula Vista Chamber of Commerce (policy Committee & Board of Directors) Chula Vista Redevelopment Corporation Community Housing Works Corky McMillan Companies Crossroads II Design Review Committee Interagency Water Task Force Jackson Pendo Development Co. National Association of Industrial & Office Properties (Legislative Affairs Committee) Northwest Civic Association CCWO Implementation Plans (As Adopted by City Council) July 1, 2008 Otay Ranch Company Otay Water District Pacific Southwest Association of Realtors Pacifica Planning Commission Pro Tee Building Services Redevelopment Advisory Committee Resource Conservation Commission San Diego County Apartment Association South County Economic Development . Council (Transportation Committee) Sunrise Rotary Club Suntrek Industries Sweetwater Authority Third Avenue Village Association (Design Committee) 3 of 58 12-29 MEASURE #1: mGH EFFICIENCY OR ALTERNATIVE FUEL REPLACEMENT VEHICLES FOR THE CITY FLEET OVERVIEW Recommendation #1 of the Climate Change Working Group states that the City Council should "require that 100% of the replacement vehicles purchased for the municipal fleet be high efficiency (hybrid) or alternative fuel vehicles (AFV s)." Factors such as the appropriateness for the vehicle task, fueling infrastructure, petroleum displacement, and the overall cost and environmental benefit must be considered in implementing this recommendation. Although the initial costs for each replacement vehicle could be higher than a conventional replacement, fuel savings may offset this initial price difference (ranging between $5,000 for small sedans to $70,000 for heavy-duty trucks) over the vehicle's lifetime. Some alternative fuels may also be less expensive than conventional fuels on a price per gallon and price per gasoline-gallon equivalent. There are many fuel alternatives available, and each fuel or technology has pOSITIVes and negatives associated with it. For example, ethanol is more readily available commercially than some other fuels, but ethanol requires more energy to produce it than it delivers when burned. Also, the ethanol production process generates greenhouse gases and ethanol production may be partially responsible for food shortages that are currently driving up the cost and availability of food. Finally, ethanol fuel has special storage and handling requirements that the City is not currently capable of meeting. Hybrid vehicles use less fuel than regular gasoline vehicles, which results in lower exhaust emissions per mile driven. One negative factor is that hybrid vehicles rely on batteries for part of their motive power, and those batteries pose an additional maintenance expense and disposal issue. Hybrid vehicles are also more expensive to purchase than regular gasoline powered vehicles. Therefore, the City is investigating the possibility of leasing hybrid vehicles to avoid the up front capital costs and hedge against the resale value of these vehicles as it is unclear what the resale market for hybrid vehicles will be in five or ten years. Vehicles that operate on compressed natural gas (CNG) are less readily available for purchase than hybrids or ethanol fuel vehicles, and there is very little fueling infrastructure in place. While no American auto manufacturer builds a light-duty vehicle powered by CNG, Honda has released a commercially-available Civic which uses CNG. The City operates its own CNG fuel facility at the Public Works Corp Yard (PWC), but the dispensing capacity is not sufficient for large-scale fueling operations. The cost to up-grade the facility would be several hundred thousand dollars. Another factor mitigating against purchasing or using CNG powered vehicles is that the resale value of such vehicles could be low. Biodiesel is a good alternative to regular diesel fuel. The fuel is created by mixing vegetable fats from a variety of sources with low sulphur diesel fuel in ratios of up to 1:5 to form B20 biodiesel fuel. The fuel can be used, in most cases, without modification to existing engines, as long as certain operating precautions are followed. At present, it will be necessary to increase fuel storage tank capacity at the Public Works Corp Yard to accommodate biodiesel. . The ideal capacity would be 10,000 gallons for each fuel type. CCWG Implementation Plans (As Adopted by City Council) July 1,2008 4 of 58 12-30 IMPLE:MENTATION Implementation of this policy will require a multi-faceted approach. Each alternative fuel or high efficiency technology has issues that must be considered, such as the carbon footprint of one type of fuel versus another, or extraneous environmental issues or unintended consequences that will arise, as a result of actions taken in support of this implementation plan. The three implementation approaches are: (1) The Fleet Management Division will replace cars and light-duty trucks with high efficiency, alternative fuel or ultra-low emissions vehicles as the existing City vehicles become due for replacement, with careful consideration for the total cost to the Vehicle Replacement Fund, and ensuring that replacement vehicles are appropriate for their intended use. This iterative process will tal<:e approximately ten (10) years to fully replace existing light-duty vehicles with alternative fuel or hybrid substitutes. Leasing vehicles (instead of purchasing) may require a smaller initial capital outlay, shorten the implementation time and provide greater flexibility to transition to future alternative fuel or hybrid options. (2) The existing diesel-fueled vehicles in the City fleet will be converted to operate on B20 biodiesel. This step can be implemented as soon as fuel storage tank capacity is addressed, since there is insufficient fuel storage capacity currently available at the Public Works Corp Yard. (3) For heavy-duty trucks for which no adequate alternative fuel or high efficiency technology currently exists, the City will wait to include these vehicle types in the fleet clean vehicle replacement process. It is unknown at this time what or when technology will become available in the corning years to convert these vehicles to alternate fuels. In addition, hybrid heavy-duty trucks are not fmancially viable at this time. Economies of scale should cause the incremental prjce difference to drop drainatically in the near future as more truck manufacturers offer hybrid or alternative fuel options. An important consideration in the implementation of this policy is to avoid a large commitment to any particular alternative fuel or technology, until it becomes clearer what fuel or technology will be the "fuel of the future" for reasons of environmental benefit, availability and reasonable cost. . It may very well be that hydrogen fuel is financially feasible and readily available within ten years, though it is not feasible now. Whatever the ideal or best fuel or technology may be, a large investment by the City in a different fuel or technology would delay migrating to the most preferred fuel or technology in the future. Although beyond the scope of this implementation plan, the City may need to consider other policy options (such as video teleconferencing by City employees) to also help reduce vehicle usage and the resulting greenhouse gas emissions. PERFORMA.NCE :METRICS The new policy's performance will be measured compared to a baseline by the following metrics: number of hybrid vehicles in the City fleet, number of other alternative fuel vehicles in the City fleet, number of ultra low emissions vehicles (as defmed by the federal and state EPA) in the City fleet, number of gallons of fuel used (by type), average fuel economy for the City fleet (by class of vehicle) and the reduction in greenhouse gases emitted by City vehicles. . CCWG Implementation Plans (As Adopted by City COWlcil) July 1,2008 5 of 58 1 2-31 TIMELINE The tirneline (summarized below) is based upon the basic fleet replacement schedule, and uses the replacement guidelines contained therein, modified to reflect current economic conditions. It will take approximately ten (10) years to completely replace the fleet's car and light-duty truck vehicles with hybrid or alternative fuel substitutes. Diesel-powered, heavy-duty vehicles will begin converting to biodiesel once the pertinent infrastructure is installed. More detailed information regarding the municipal fleet replacement schedule (Appendix A) is also included as a reference in this document. The schedule assumes the availability of hybrid or alternative fuel vehicles when vehicle replacement is planned although currently there are not options for all vehicle types. It is anticipated that availability will improve rapidly in the next few years. In addition, the schedule does not include police patrol sedans nor special assignment undercover investigation vehicles. Although police sedans having Flex Fuel capabilities (i.e. able to use gasoline or ethanol) will be available in 2009, ethanol will not be used as an alternative fuel for reasons previously mentioned. CCWG MEASURE #1: HIGH EFFICIENCY & AL TERNA TIVE FUEL REPLACEMENT VEHICLES FOR CITY FLEET Implementation Timeline PROGRAM MILESTONES . .~emajning City sedans & Ijght~dutt I"nllial purChase I . 4 hybnds -$350k needed to install rucks replaced or fuel tanks at me PIrie to leased vvrtl1 hybrids of 4 hybnds In purchased in accommodate blodiesel or,AFVs 2005 2006 ~ / ""'''. , / / ", I I / I ., "- July '05 July '08 "'~ July'12 July'18 ~ . Vehicle Replacement Fund needs to be adjusted annually to reflect higher purchaSe/lease prices of hybrid.s or AFVs For some off-road construction and maintenance equipment, it will be many years before these vehicle and equipment classes are replaced in the fleet with newer, less polluting substitutes. However, for some high usage equipment classes (such as riding la'Wn mowers and sewer cleaning trucks), they could be replaced within a relatively short period of time (possibly within six years). In both cases, it is highly unlikely that hybrids or alternative fuel replacement options 'Will be available for those equipment types in the near future. In the interim, diesel-powered equipment will be operated on B20 biodiesel, as soon as the fuel storage capacity issue is addressed. CCWG Implementation Plans (As Adopted by City Council) July 1,2008 6 of 58 12-32 BUDGET & Fll"fANCll"fG Over the ten years during which vehicles and equipment will be replaced with hybrid and/or alternative fuel substitutes, the cost difference between purchasing "clean" vehicles and regular gasoline/diesel vehicles is estimated to be $1.6 million (averaging $160,000 annually). In addition, approximately $350,000 will be required to install tanks to provide biodiesel fueling opportunities. Appendix B (attached) outlines the incremental cost difference each year. It is expected that incremental pricing will decline over time as the technology becomes more widespread and more hybrid models become available for purchase. The program's budget is outlined below: CCWG #1 . Clean Vehicle Replacements for City Fleet. Budget AFV/Hybrid Replacement Premium $160,000 Biodiesel Fuel Tanks $350,000 TOTAL $350,000 $160,000 The Vehicle Replacement Fund will need to be adjusted beginning this year, to ensure that sufficient funds are available to implement measure #1. At present, the Vehicle Replacement Fund is under-funded and currently only has a fund balance of approximately $950,000. Charges to vehicle user departments must be adjusted to reflect the higher purchase prices that will be experienced as hybrid or alternative fuel vehicles are assimilated into the fleet. This will have a negative impact on the General Fund, since the majority of fleet vehicles are operated by General Fund departments. Projections for the next two or three fiscal years show that there will not be a large number of hybrid vehicles brought into the fleet, based upon recently revised vehicle replacement schedules. Therefore, the immediate impact on the Vehicle Replacement Fund will not be significant. Furthermore, municipal fuel cost savings (estimated at $306,277 over 10 years based on current fuel prices) from incorporating alternative fuel and higher efficiency vehicles into the fleet will offset a portion of the increased replacement costs. CCWG Implementation Plans (As Adopted by City Council) July I, 2008 70f58 12-33 MEASURE #2: ENCOURAGE CITY-CONTRACTED FLEET OPERATORS TO ADOPT THE USE OF HIGH EFFICIENCY (HYBRID) OR AL TERNA TIVE FUEL VEHICLES OVERVIEW Climate Change Working Group's recommendation #2 states that "the City ofChula Vista work with fleets tmder City authority to influence their expanded use of alternative fuels and high- efficiency/alternative fuel vehicles including electric, biodiesel, ethanol, hybrid, hydrogen and natural gas based on appropriateness for vehicle task, fueling infrastructure, petroleum displacement, overall cost and environmental benefit." Generally, the implementation of this policy will require amendments to the City's contracting and bid specifications, requiring contractors to incorporate high efficiency (hybrid) and alternative fuel vehicles into their fleet when new contracts are negotiated. The effectiveness of this implementation is dependant upon the alternative fuels infrastructure and vehicle classes in which there are operationally-practical, technically-feasible hybrid or alternative fuel options. Staff had already begun discussions concerning alternative fuels and hybrid/alternative fuel vehicles with some of the City contractors prior to the Climate Change Working Group's recommendation. City staff reviewed current contracts and permit processes in relationship to this climate protection measure. Each of these permitted or contracted fleets' implementation status is detailed below. IMPLEMENT A nON Transit In FY1998/99, City Council authorized staff to convert the Chula Vista Transit (CVT) fleet from diesel to Compressed Natural Gas (CNG). The first delivery of 15 full-size CNG buses took place in 2001 and 10 more arrived in 2002. In 2005, seven mid-size CNG buses were delivered. Six of these buses were incorporated into the Transit fleet and one was turned over to the Nature Center to be utilized as their shuttle. The current Transit fleet, as summarized in Table 2 below, now consists of 3 7 buses of which 31 buses are CNG. Table 2: Current Transit Fleet Inventory Year Fuel Type No. of Buses Bus Type 30' Low Floor 2005 CNG 6 40' Low Floor 2001 CNG 10 40' Low Floor 2000 CNG IS 40' Low Floor 2000 Diesel''! 2 35' High Floor 1995 Diesel'-) 2 40' High Floor 1991 Diesel'") 1 35' High Floor 1991 DieseJl-) 1 TOTAL 37 I ,.) Will remain in fleet. Needed to meet 20% spare ratio. (1) Scheduled for replacement. CCWG Implementation Plans (As Adopted by City Council) July 1,2008 8 of 58 12-34 Street Sweeping Cannon-Pacific, the City's contracted street sweeper, currently operates three street sweepers within City limits. The contractor is looking into alternative fuel trucks and related fueling options available for street sweepers and has expressed interest in using alternative fuel vehicles within the current contract term, which may require "significant" contract amendments. Cannon- Pacific fully understands the need for alternative fuel vehicles and is willing to work with the City of Chula Vista to comply with climate protection measure #2. Trash Hauler The City's contract with Allied Waste Services is in its first eight-year contract extension, which expires June 30, 2015. There is a "Clean Fuel Source" clause in the current contract with Allied Waste Services: 6.2.24 Clean Fuel Source. Pacific shall dfNelop a pilot project for Collection vehicle replacement or conversion to a clean fuel service in cooperation with City within 180 days which identifies Collection vehicles for conversion and provides that conversion will occur if City and Pacific can idehtify outside funding to pay for (a) the vehicle conversion, (b) incremental cost of new vehicles and (c) costs for a centrally located fueling station. Pacific or its Affiliate will promptly implement a program regarding the purchase of new clean fuel source (~ E-rated electricity, propane. natural gas, liquid natural gas, hydrogen fuel cell, CNG, or equivalent clean power and fuel source) for non- Collection support vehicles and on-site equipment using gasoline or diesel (such as fork lifts or generators) upon the replacement of such support vehicles and on-site equipment. Pacific will immediately establish service with a California Green E Utility provider for its on-site electrical power source needs at Chula Vista facilities. City shall permit Pacific and its Affiliates to purchase clean fuel sources from City at a price that does not include any profit for City. Allied Waste Services began using biodiesel (B20 Blend) seven years ago and more recently began adding a fuel reformulator, Ethos RF, to improve fuel efficiency and reduce emissions (non-greenhouse gas). This fuel combination, in tandem with all the California Air Resources Board-required equipment (such as particulate traps and catalytic converters), has reduced their opacity readings fleet-wide by 74.5% since 2001 and already placed them in full compliance with 2010 air emission standards. Allied Waste Services operates 52 collection vehicles in the City of Chula Vista. Taxis The City does not currently contract with any taxi service, but does license taxis to operate within the City's boundaries. In order to obtain a license to perform taxi service within Chula Vista, the cab company must submit their cab(s) to a thorough vehicle inspection and fill out the required licensing paperwork with the City of Chula Vista Police Department's Traffic Enforcement Unit. Of the 179 taxi cabs that are currently licensed to operate within the City of Chula Vista, approximately 51 % of the taxis are independently owned and operated. The remaining taxis belong to one of three different taxi cab companies: Red Cab (45 taxis), Eritrean Cab (23 taxis) and Yellow Cab (20 taxis). In discussions with the three major cab companies, City staff learned that the companies do not directly purchaSe vehicles, rather they independently contract with individuals to provide insurance, dispatching and name recognition. It is up to each individual cab owner to replace his/her vehicle. All three companies indicated that currently moving to alternative fuels is problematic because there is not an established network of fueling infrastructure to support CCWG Implementation Plans (As Adopted by City Council) July 1,2008 9 of 58 12-35 vehicle fleets throughout San Diego County. In the past, Yellow Cab tried switching their fleets to CNG but frequently had their vehicles running out of fuel due to the limited infrastructure. As a result, their towing expenses increased dramatically and they reverted back to conventional fuel vehicles. Another obstacle to incorporating "clean" vehicles into the taxi fleet is the cost increase to individual cab operators. Taxi vehicles are typically purchased as used vehicles. By requiring new AFV!Hybrid vehicles to be purchased instead, operators would not be able to make enough revenue to offset the cost premium of purchasing the new vehicle. This could result in lower service levels within City limits which may directly affect Chula Vista residents and businesses. Tow Trucks The City currently contracts with four tow companies to provide police-initiated tows such as vehicle accident removal, abandoned vehicle removal, negligent vehicle impounds and towing inoperable department vehicles. Staff met with the tow companies to discuss alternative fuel or hybrid options for their fleets. Because the majority of tow vehicles use diesel-based engines, the only practical alternative fuel option for the tow fleet at this time is biodiesel. The "closest biodiesel fueling station to Chula Vista is off Interstate 15 at E1 Cajon Boulevard. Because of the distance (approximately 10 miles) and the limited operating hours (7 am - 10 pm), this is not an economically or environmentally feasible option. Until the appropriate fueling infrastructure is built in Chula Vista, biodiesel use is impractical for the tow truck fleet. For the few non-diesel based tow vehicles, there currently are no alternativelhybrid options for these sized vehicles. However, manufacturers of larger trucks are now developing hybrid vehicles which ultimately could be placed ~nto fleet use sometime in the future. The current contract with the tow companies expires June 30, 2011. As a new contract is eventually pursued, staff will reassess local biodiesel availability and other relevant AFV!Hybrid replacement options. If there are feasible options, language will be added to the Request for Proposals outlining the City's Policy for AFV!Hybrid vehicles. PERFORMANCE METRlCS As a performance measure, the City will require an annual vehicle list from contractors which may contain, but is not limited to, the vehicle fleet number, make, model, age and fuel type of each vehicle. Through this annual inventory, the City will be able to track each contractor's progress in incorporating hybrid and alternative vehicles into their fleets. TIMELINE Transit The Metropolitan Transit System (MTS) has approved the funds to purchase six additional CNG buses for the Chula Vista Transit fleet during CY 2009 which will result in 95% of the fleet being powered by an alternative fuel. Additionally, Chula Vista and MTS are under the California Air Resource Board's (CARE) Alternative Fuel Path, which commits both agencies to purchase only alternative fuel buses. Chula Vista Transit's contractor, Veolia Transportation Inc., has also committed to purchasing five (5) hybrid vehicles for their road supervisor staff. The implementation time line for transit vehicle replacement is summarized below: CCWG Implementation Plans (As Adopted by City Council) July 1,2008 10 of 58 12-36 CCWG MEASURE ft:2.: ENCOURAGE CITY-CONTRACTED FLEET OPERATORS TO ADOPT THE USE OF HIGH EFFICIENCY OR ALTERNATIVE FUEL VEHICLES Implementation Timeline TRANSIT - PROGRAM MILESTONES . Initial purchase of 15 full-sire CNG buses in 2001 .10 full-size CNG buses purchased in 200'2 . i mId. size CNG buses purchased in 2005 . MTS to purchase 6 more '::NG buses in 2009 July '01 July 'OS . HydrogenlCNG blend - 2 buses to be recalibrJted for 20180 fuel blend via grant from Congressman i=ilner's affic~ . MTS transit provider, Veolia Transportation, Inc., ;,a5 corrmitted to purchasing hybrid .....-ehicles for supervisors (5) Street Sweeping Cannon-Pacific is willing to start converting to alternative fuel vehicles prior to the end of their current contract term which expires June 30, 2011. The implementation time line for street sweeper vehicle replacement is summarized below: CCWG MEASURE ft:2.: ENCOURAGE CITY-CONTRACTED FLEET OPERATORS TO ADOPT THE USE OF HIGH EFFICIENCY OR ALTERNATIVE FUEL VEHICLES Implementation Timellne STREET SWEEPERS - PROGRAM MILESTONES I,' Currem contraC'S expire I June 30, 2011 1\ I I 1\ I \ July '0,8 July '09 July'10 July '1 'l\ July'12 \ \ \ \ \ \ \ -Initial discussion vvith . New contracts'vvith contractor about CONG alternative fuel or high measure & future efficiency vehicle eCUlCment conversion requirement begir.s CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 11 of 58 12-37 Trash Hauler Over the last two years, Allied Waste has continued to evaluate biodiesel suppliers who could. provide a consistent, high quality fuel source. One potential source is a company called New Leaf which is building a biodiesel manufacruring facility in Otay Mesa. The facility will use cooking oil as its fuel base. Allied Waste Services has already begun to meet with New Leaf to. work on establishing standards and a possible purchasing agreement. The implementation timeline for trash hauler vehicle replacement is summarized below: CCWG MEASURE #2: ENCOURAGE CITY-GONTRACTED FLEET OPERATORS TO ADOPT THE USE OF HIGH EFFICIENCY OR ALTERNATIVE FUEL VEHICLES Implementation Timellne TRASH HAULERS. PROGRAM MilESTONES . Contractor began use of biodiese! in collection vehicles for City contract I . l:a: Contract exrension tor 8 years ) . SubmilIed grant application for 25 natural gas trucks & fueling station to APeD July'01 July '04 July '07 July '1 0 '"1" . Restarting biodiesel from more consistent supplier ~ November 2008 . Next contract renewal date July 1,2015 . Contractor received bad load of biodiese! which '.:aused inajar fleet problems - Clogged fuel ~stems. Taxis The timeline for transitioning taxi vehicles to AFV/hybrids is unknown due to the reasons stated above (cost effectiveness & fueling infrastructure). Tow Trucks When the current tow services contract expires in June 2011, there should be greater biodiesel availability in Chula Vista as well as greater availability of other AFV /Hybrid truck options capable of performing tow operations. BUDGET & FINA.N"CING While there is some grant funding available for specific equipment/models and conversions, it is expected that there will be some cost increases or longer contract terms required for contractors to be able to amortize the capital invest.'nentsfrom complying with the City's "clean" vehicle replacement policy. The program's budget is outlined below: CCWG Implementation Plans (As Adopted by City Council) July 1,2008 12 of 5 8 12-38 CCWG #2 - Clean Vehicle Replacements for City-Contracted Fleets - Budget HCNG Blend Project - Buses $144,000 H21CE - Van $43,000 TOTAL $43,000 $144,000 Transit The Metropolitan Transit System has approved the funds to purchase six CNG buses for Chula Vista Transit which are anticipated to arrive in 2009. The City has received a $738,000 earmark from Congressman Bob Filner's office for a Hydrogen/Compressed Natural Gas (HCNG) blend project. Two CNG buses will be recalibrated to operate on a 20/80 HCNG fuel blend. Using the HCNG blend reduces all emissions. An immediate and significant benefit comes from a 50% reduction in nitrogen oxides (NOx) compared to CNG. Approximately $5,000 - 6,000 per bus/ month will be required to produce the hydrogen required to operate the buses. Transit funds will continue to be able to fund the CNG fuel use, but additional funds will be needed to cover the incremental cost of the hydrogen production. Ford Motor Company has provided the City one (1) experimental Ford Hydrogen Internal Combustion Engine (H2ICE) 12-passenger shuttle van, which will be based on the Ford E450 platform for the purpose of aiding both Ford and the City to demonstrate and evaluate the performance characteristics of such a vehicle. The City of Chula Vista proposes to use the H2ICE as the transportation means for visitors to the Chula Vista Nature Center. The cost of electricity to generate the hydrogen by the City's hydrogen electrolyzer is estimated at $2,400 per month. The extended cost over the term of the project is estimated to be $43,000. Street Sweeping Cannon-Pacific has expressed an interest in starting the alternative fuel vehicle implementation within the current contract term, which may require "significant" contract amendments such as additional fees. or costs. Trash Hauler Allied Waste Services has recently submitted a grant application to the Air Pollution Control District's Carl Moyer Fund to purchase 25 CNG'trucks and a fueling station for its Chula Vista fleet. They are also researching the feasibility of using landfill methane gas for fueling purposes. CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 13 of 58 12-39 MEASURE #3: BUSINESS ENERGY ASSESSMENTS OVERVIEW The measure, as adopted by City Council, would encourage through a new municipal ordinance commercial and industrial businesses to participate in an energy assessment of their premises The measure is intended to help businesses identify energy efficiency opportunities at their facilities and; if desired, take advantage of applicable rebate and incentive programs for energy efficiency improvements. The assessments, which would be offered at no cost, would only apply to businesses with a physical storefront and/or office and would be encouraged when a new license is issued or every three years for a renewed bush"1ess license. The business energy assessment process is graphically summarized below: CCWG MEASURE #3: BUSINESS ENERGY ASSESSMENTS Implementation Plan Summary PROGRAM DE\lELOPMENT Municipal Codet Revisions . ~endment to Chapter 20 Energy Conservation of the Municipal code. . ?assible cross re~rences added to 3eCOQn 5.02 & 5.04 of 8usiness wcense code . Public Readings and ~~ periOdS I I I I I I I I I I I I I I I I I I I I [ [ I [ I 'j I I I I [ I I I I I I [ PROGRAM IMPLEMENTATION FOR EXISTii'K3 UCENSES: Businen Assessment Notice (November) Business Assessment . Sent in conjunction wtth Notir:e Finance Department's annual Scheduling Pen"od (within Calendar Year) business license renewal notice (30 days) . City staff performs energy . Business sets assessment assessment & review appointment r-+ results ~th business representatIVe . Assessment can occur . Cir( staff assists business anytime during ttleir regular W'ith energy effiCiency ,=OR NEI^,'UC5NSES, hours af operation incenti've and rebate application at the discretion Business Assessment Noaae of the business (Dependent of Application Su'omittal Dace) . ..:\pplicant notified of assessment when new bUSIness license is issued IMPLEMENT A nON The Department of Conservation & Environmental Services will administer the program with anticipated support provided by the Finance (Business License Division) and Information Technology Services (IT Programming Division) Departments. Staff is recommending that the business energy assessment be codified through Title 20 - "Energy Conservation" of the Chula Vista Municipal Code (see Appendix C for example of conservation-focused municipal code applying to all Chula Vista businesses). Specifically, the municipal code would be augmented to include the following concepts: All commercial and industrial businesses in the City of Chula Vista are encouraged to cooperate with City staff or their delegate to conduct a free energy assessment of their facilities when a new business license is issued or once every three years for an existing CCWG Implementation Plans (As Adopted by City Council) July I, 2008 14 of 58 12-40 license by providing; 1) a date and time for the assessment convenient for the business, 2) access to their facilities for the assessment during their regular business hours,. 3) authorization (voluntary) to access their Energy Waves account (a San Diego Gas & Electric energy analysis tool), and 4) a signature and title of a facility manager on a completed assessment form acknowledging that the business has received a completed assessment and relevant information about potential. energy-efficiency improvements to implement at the business's discretion. For multi-tenant commercial buildings, the property manager may authorize a whole building assessment replacing the need for individual tenant assessments. Assessment Notification Process: The City will send a written notice to each business at least once every three years in conjunction with the City's annual business license renewal mailer informing the business of the opportunity for a free energy assessment and providing information that allows a business to schedule an appointment at their convenience. A business shall also receive a business assessment notice whenever a new business license is required such as the establishment of a new business or transfer of ownership for an existing business. Assessment Deliverables: The assessment findings shall be provided to the business on a form established by the City Manager in conjunction with the local utility and business representatives, including a chart of their energy consumption over the past 18 months (extracted from their Energy Waves account) and an estimate of their potential energy and financial savings as well as the corresponding greenhouse gas (GHG) reductions based on state-approved GHG accounting protocols. The assessment may also review . alternative transportation options which the business could implement and/or promote to its employees and customers and the resulting GHG reductions. The City shall provide. any available forms and an offer of assistance to complete. the forms and process for accessing available state and/or local rebates that reduce the cost of implementing the voluntary energy efficiency improvements. Businesses are not required to implement improvements, however, businesses may at their discretion request additional assistance from the City or its designee to be trained on how to use Energy Waves and implement any or all of the measures selected by the business as the most cost effective choices for reducing energy consumption. The City shall also provide contact information for the local Utility's Account Executive or other staff designated by the Utility for. a specific program that may assist the business in reducing its energy costs. Exemptions: An energy assessment may not be necessary for new businesses occupying a commercial space which has completed one of the following: 1) been permitted by the City Building Division within three years for a remodel or new-construction to meet the most current City Title 24 and above standards, 2) has been certified through a California Energy Commission-certified (or other applicable state agency) green building program, or 3) has already received an assessment within the last three years. In addition, Assessments are not necessary for home offices, mobile businesses and other business entities that do not have a utility gas or electric meter on a commercial rate schedule. CCWG Implementation Plans (As Adopted by City Council) July 1,2008 15 of 58 12-41 PERFORI\1ANCE lVIETRICS The business energy assessment program's performance will be measured by a suite of metrics including the number of asSessments performed, number of energy efficiency improvements identified and the corresponding potential kWhlTherm savings. In addition, the number of businesses implementing new alternative transportation policies or programs will be tracked. Staff will investigate the possibility of receiving aggregated customer information from SDG&E to quantify the number and amount of incentive funds solicited as a result of the business. assessment process. In the City's current greenhouse gas (GHG) inventory protocol, the business sector's carbon emissions are directly quantified by extrapolating business energy use from aggregated community data provided by SDG&E. WillIe the proposed program does not require b\lSinesses to adopt energy efficiency improvements, it does help them to understand and apply for SDG&E rebate and incentive programs that could lead to increased energy conservation. Over the last two years, City staff has visited over 2,000 businesses and identified over 800,000 kWh in potential annual energy savings (equivalent to over 700,000 lbs of carbon emissions) as part of the current program. Encouraging an energy assessment as part of the business license renewal process will greatly expand the potential for immediate emissions reductions and provide opportunities for businesses to lower their monthly energy costs. TIMELINE Implementation would require an amendment to Chapter 20 "Energy Conservation" of the Chula Vista Municipal Code and potentially a cross reference amending the Business License code sections (5.02 & 5.04). Ordinance notice, first reading and second reading would take approximately 40 days. Some items may require review by other agencies which may also take an estimated 45 to 60 days. The program's time line is summarized below: CCWG MEASURE #3: BUSINESS-ENERGY ASSESSMENTS Implementation Plan Timefine PROGRAM MILESTONES ~ug '08 .. Draft &. present to Council municipal cade n~yisions Jan '08 . New SOG&.: Partnershlo funding begins & continues through O~C '11 July '08 J '09 July '09 Oct'oe .. Hire & train soft' .. Develop program matenals I Nov 'oe Jan '09 . BUSIness I assessrnent3 begin & continue throughout year .. Notices sent to businesses & assessment scheduling begins CCWG Implementation Plans (As Adopted by City Council) July I, 2008 16 of 58 12-42 BUDGET & FINANCING The propose~ program's implementation cost is estimated to be $321,400 per year in staffmg, supplies and services (summarized in table below). This program cost assumes full funding of all seven CCWG measures and will leverage each measure's budget to provide partial cost sharing of staff time and program materials. For example, staff visiting businesses to perform energy assessments will also be able to promote other climate-related programs such as the Solar Conversion (CCWG Measure #5) and Turf Lawn Conversion (CCWG Measure #7) programs leading to lower implementation costs for each program and increased program participation. A portion of each measure's budget will also partially cover overall administrative and performance tracking costs associated with the City's climate protection efforts. The program's budget is outlined below: CCWG #3 - Business Energy Assessment - Budget City Staff . $111,600 Interns $146,800 Marketing $16,000 Other Commodities $47,000 TOTAL $321,400 'Assumes cost sharing between CCWG Measures #3,5 & 7 Probable funding by SDG&E1CPUC through Dee 2011 The City, through the Department of Conservation & Environmental Services, currently offers a voluntary business energy assessment program which is funded through a California Public Utilities Commission (CPUC)/San Diego Gas &Electric (SDG&E) grant through December 31, 2008. The grant only provides funds for the assessments and not incentives for businesses to implement the identified energy efficiency improvements. Staff has submitted a new grant proposal to the CPUC/SDG&E to continue funding the business assessment program through December 31, 2011. To ensure the program continues beyond future grant funding cycles, staff would recommend that the program should be funded through a more broadly applied Fee Authority structure. A Fee Authority would provide staff with greater flexibility to address future business grO'i'lth and increased personnel and supply costs as the program and economy evolve. CCWG Implementation Plans (As Adopted by City Council) July 1,2008 17 of 5 8 12-43 MEASURE #4: GREEN BUILDlL~G STANDARDS OVERVIEW The City of Chula Vista Climate Change Working Group's (CCWG) recommendation #4 urges the City to adopt community-wide green building standards that are comprehensive in coverage and mandatory. The CCWG recommended that new and substantially renovated structures be required to be built to LEED Silver or to an equivalent third-party certification green building program, with the effect of having an energy efficiency impact of at least 20% over current Title "24 requirements. However, there is not a straight-line relationship between green program certification or Title 24 performance and carbon reductions. For this reason, City staff recommends an approach that focuses directly on carbon emission reductions. Reductions in energy use by buildings are among the easiest carbon-reducing actions to quantify and lessen the community's "carbon footprint." As approved by City Council, Chula Vista Will implement a citywide, mandatory green building standard for new construction and major renovations. The new standard will have 3 main" components: (1) a minimum energy efficiency (carbon equivalent) requirement of 15% above Title 24 - 2005, (2) the early adoption of the new California Green Building Codes for all residential and commercial projects and (3) a Carbon Offset Fee available for projects not meeting the 15% above Title 24 threshold. The City will re-evaluate its Green Building Standard in summer 2009 when the revised Title 24 becomes effective. The Chula Vista Green Building Standard will complement green building measures at the state and national level, and place a high priority on reducing the carbon emissions of buildings in Chula Vista. The innovative program provides an equitable solution for new and retrofit, as well as residential, industrial and commercial buildings. Furthermore, the proposed program meets, and in the case of commercial projects exceeds, the initial reduction targets outlined by Architecture 2030, a nationally- recognized movement in the building/architectural community to make new buildings "carbon neutral" by 2030 (Appendix D). IMPLEMENTATION The City of Chula Vista Planning and Building Department, Building Division, is responsible for confirming that all commercial, industrial and residential construction projects meet" the minimum requirements of the State and locally mandated construction codes. They also provide plan check and associated inspections. The Planning Division is responsible for promulgating policy and regulations and administering them for land use, site design and zoning. Building Codes, land use policies, zoning ordinances and design guidelines all can contribute to the goal of meeting this objective. The Chula Vista Green Building Standards program will focus on reducing carbon emissions and contains the following four components: (1) Develop and implement a Chula Vista Building Carbon Reduction Benchmark Program, (2) Early adoption of the California Green Building Code, (3) Preparation and Implementation of a Green Awareness program for homeowners and building operators, and (4) Adoption of new zoning ordinances and design guidelines. The implementation process is graphically depicted below: CCWG Implementation Plans (As Adopted by City Council) July 1,2008 18 of j8 12-44 CCWG MEASURE #4: GREEN BUILDING STANDARDS Implementation Plan Summary Green Building Standards Program . Promotes the quantifiable reduction of carbon emissions for residential, indu:strial and commercial buildings . Compliments the measures at a state and netionalleve! and reduces the commun[y's."ce:rbon tootprrt." . .. I .. ~ , Building Carbon Early Green Building Green Awareness Policy Guidelines and Reduction .Benchmark Code Adoption Program Regulatory Pro gram I Adopt the CaDfornia Green . ~repa:re: an d implement an Amendments .. Oeveio p and establish the Sulding Code prior to edu:ation ilf1d outreach . Updete AQlP guidelines to goal~ I objecti.....es and implementation 01 January program tor homeowners and implement green building thresholds for carbon reduction 2011 build ing op ermors standelrds tor large.scale -Develop an energy savings . Adopt a Findings of Fad: in . Coordinate and collaborate develop ment component that emphasizes accordence V'\Ifth the Hes 1th with SOO&E tor promoti~1 . Pr~pere any additionel policy community/site design and Safety Code 1 79.5 8.5 efforts program guide!in.es to address guide fines and energy arid.S smaller development or A832 efficiency requirem ents -Prepare guidertnes for buUding . Amend applicable permit revi~ and.reline the development regulations (i.e. Drart Carbon -Reduction zoning code design guidelines, Checklist GMOC ordinancelguidelines or . Evaluate and develop a municipal code to Implement mitigation fee componert Carbon Reduction Program Develooment of a Building Carbon Reduction Benchmark Program Staff will work to develop and implement a Building Carbon Reduction Benchmark Program, which would recommend that all new construction and remodels reduce and document reductions in carbon emissions compared to the minimum results that would be achieved through compliance with the applicable version of California Title 24 energy standards. The proposed program will allow developers the flexibility to determine how best to meet these requirements, which will offset the burden associated with meeting an additional procedural requirement. This program would provide a level playing field for new and retrofit, as well as residential, industrial and commercial buildings, and would help accomplish the goals of the Chula Vista C02 Reduction Plan. In. coordination with stakeholders, staff would begin with developing the framework of the Building Carbon Reduction Benchmark Program to attain 15% greater carbon reduction than current Title 24 requirements and establish the goals, objectives and proposed thresholds to accordingly reduce overall carbon emissions for all new development. Staff will then prepare an energy savings component that includes both. community/site design guidelines and energy efficiency measures. As a part of this effort, staff will prepare guidelines for building permit review and further refine and/or supplement the Chula Vista Carbon Checklist (Appendix E). This checklist shows emission reductions for various Development Credits as well as Energy Efficiency Credits for both Prescriptive and Performance Paths. As a part of this program, staff will evaluate a range of proposed carbon emission thresholds. As an example, proposed thresholds may require a reduction in carbon emissions of 15 pounds per 100 square foot in Climate lone 1 and 'a reduction of 35 pounds per 100 square foot in Climate lone 10 based on the applicable version of Title 24. Chula Vista straddles two different climate zones. The bulk CCWG Implementation Plans (As Adopted by City Council) July I, 2008 19 of 58 12-45 of the City rests within Climate Zone 7 while the far east of the City is in the more rigorous Climate Zone 10 (Appendix F). These values represent the approximate carbon savings achieved when exceeding Title 24 by 15%. The Chula Vista Carbon Reduction Checklist will need to be completed by the builder for each permit. The savings can be accomplished in two different areas: (1) community/site design and (2) energy efficiency. The first typically applies to larger scale projects, and the Planning and Building Department will ensure that future long range plans such as Spe~ific Plans and Sectional Planning Area (SPA) Plans include community/site design and energy efficiency components through policy and regulatory changes as presented in the "Policy Guidelines and Regulatory Amendments" section. Community/site design features generally manifest carbon savings through reducing vehicle miles traveled (VMT), and associated tail pipe emissions, by increasing emphasis on other travel modes such as walking and transit use through means including: expanded pedestrian!bike connections, expanded transit plans, mixed-use development, and increased density. Additional efficiency can also be gained through site design features that optimize the potential for renewable and advanced energy-efficient technology uses (i.e. solar orientation, cogeneration and district energy systems). \Vhile all of these features can lead to carbon savings, the establishment of baselines and the quantification of savings for community design measures are less direct than with energy efficiency measures, and at present there are not well established metrics. This is one of the primary focuses of the active Chula Vista Research Project (CVRP) with the National Energy Center for Sustainable Communities (NECSC). The CVRP/NECSC team is currently conducting studies to produce a set of clear modeling assumptions, a detailed description of their methodology and specific emission reduction values for alternative community/site design features. Their work will not be completed for several months. Staff will also need to carefully work with the CVRP outputs and the NECSC team to defme and establish these baselines and features, and balance their use along with desired energy efficiency savings. To accomplish development of the community/site design component of the Green Building Standards Program, staff envisions a multi-step process which will include the following: (1) establishment of a community/site design Working Group, (2) scoping and evaluation workshops, (3) compose a draft standard and conduct a rating simulation, (4) revise the draft standard and solicit stakeholder input and (5) complete and issue the fihal community/site design standard for Council consideration as part of the overall Green " Building Standards Program. Individual project savings will need to be quantified by the developer or builder with PLACE3S, Community Viz, URBEMIS or other appropriate software used to calculate energy generation and efficiency options as a function of land use and development choices as determined through the CVRP. The Planning and Building Department will evaluate these products to determine which is preferable for use in the Program. Builders will also be able to accumulate carbon savings through energy efficiency. There will be three avenues for them to accomplish this: (1) a prescriptive path where the builder selects features that will deliver the necessary savings, (2) a performance path where t.'1e builder uses California Energy Commission-approved software to quantify the energy savings (and thus carbon savings) of specific efficiency measures and (3) renewable energy production. Tue prescriptive path is available. to residential construction and remodels; however, commercial buildings must follow the performance path. The third method for builders to reduce carbon CCWG Implementation Plans (As Adopted by City Council) July 1,2008 20 of 58 12-46 emissions is to include on-site renewable energy. Technologies that shall qualify include: solar photo voltaic systems, solar hot water systems, geothermal systems (geoexchange) and small scale wind turbines. The building will be credited with carbon savings based on the size of the system installed. This compliance method will be available to all building types. The City will re-evaluate the Green Building Standard's 15% threshold in summer 2009 when the revised Title 24 becomes effective. The program will include a mitigation fee component should a builder choose or otherwise not be able to effectively meet the additional C02 savings requirement on-site. The fee will equate to the cost of exceeding Title 24 by 15%. The fee will establish a dollar value per pound of necessary carbon offset by building type. Preliminary estimates from our consultant, ConSol, indicate that the fee may be approximately $2.50 per pound of carbon plus administrative costs. . By focusing on pounds of carbon per square foot, the City can utilize the same set of ground rules for residential and commercial construction, new construction and remodels, custom homes and large developments. Builders shall also have the option of opting out of the checklist if they . demonstrate through CEC certified sofu,yare that they exceed Title 24 by 15% or more. Earlv Adoption of California Green Building Code The Building Standards Commission (BSC) and Department of Housing and Community Development (HCD) have developed a California Green Building Code (CGBC), which will apply to non-residential and residential construction, respectively. The BSC regulations for non- residential buildings is currently intended to be a voluntary code, .while the HCD version for housing three stories or less will become mandatory by State Law on January 1,2011. Since the mix of Chula Vista permits weighs heavily on residential (80/20), it is recommended that the California Green Building Code requirements be used for both residential and commercial buildings. Please note that the plumbing provisions of CGBC do not become effective until July 1, 2011. The plumbing measures have a delayed adoption to ensure that enough of the required product (fixtures, showerheads and toilets) will be available to meet market demand when the code is adopted. The CGBC includes many best practices among the existing green programs. The water savings, construction waste reductions, and the Volatile Organic Compound (VOC) limits for paints, adhesives, and carpets can be mainstreamed into construction practice with minimal cost impact. The provision of the CGBC that has the largest cost impact is the requirement for 1.28 gallon per flush toilets. Currently, a 1.28 gallon per flush toilet is -$250 more expensive than a current 1.6 gallon per flush toilet. It is recommended that Chula Vista adopt the HCD California Green Building Code as it will be approved this summer. If Chula Vista adopts this code before the implementation date of January 1,2011 and/or expands its scope to include commercial buildings, the City will need to adopt a Findings of Fact per Health and Safety Code 17958.5 and 17958.7. This is a fmding that. states that the new municipal code is reasonably necessary for climatic, geologic or topographic conditions. The new code would not be effective until the Findings of Fact were filed along with the ordinance to the Building Standards Commission. CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 . 21 of 58 12-47 The requirements of the BCD California Green Building Code are: Plan for storm water drainage and retention during construction; 406.2 Site Development: retention basins; storm water filtered by a barrier system to public drainage; compliance' with storm water management ordinances 503 Ene~ Efficiency Performance requirements meet current T-24 . 506.1 Air Sealing Package Joints and openings must be sealed to the CEC energy standards currently in effect 20% reduction in potable water use; each plumbing fixture 20% reduced flow rate: showerheads - 2.5 to 2.0 gpm, bathroom and 603 Indoor Water Use kitchen faucets - 2.2 to 1.8 gpm, toilets - 1.6 to 1.28 gal/flush.(l.28 gpf toilets are required by code as of 7/1/11) or calculation demonstratin,g 20% reduction in water use baseline 705.3 Covering of Ducts & From rough until fmal all ducts shall be covered to reduce dust and Mechanical Equioment debris which may collect in the system 50% reduction of non-hazardous construction and demolition 709.2 Construction Waste Reduced waste or local ordinance, whichever is more stringent (exception: excavated soil and land-clearing debris) 711.2 Building & Maintenance Provided to building owner Manual Adhesives and sealants used on the project shall meet the requirements of the following standards: 1. Adhesives, adhesive 804.1.1 Adhesives and Sealants bonding primers, adhesive primers, sealants and sealant primers shall comply with South Coast Air Quality Management District (SCAQMD) Rule #1168; and 2. Aerosol adhesives shall meet the requirements of California Code of Rel!u1ations, Title 17 804.1.2 Paints & coatings Architectural paints and coatings shall comply with South Coast Air Quality Management District (SCAQMD) Rule #1113. 804.1.3 Carpet & carpet systems Shall be low VOC 804.1.4.1 Particleboard and medium Shall be certified to ANSI A208.1 arid A208.2 (low formaldehyde density fiberboard (MDF) used in emission standards) interior finish systems 804.1.4.2 Hardboard plywood used in Shall be certified and comply with ANSI/PHV A HP-1-2204 and U.S. HUD Title 24, Part 3280 (low formaldehyde emission interior finish systems standards) 805.2.1 Vapor retarder and capillary Min. 4" of 12" clean aggregate base between vapor retarder and break installed for slab on grade slab foundations Building materials with visible signs of water damage, mold or 805.3 Moisture content of building other biological growth shall not be installed; interior walls and floors shall not be enclosed if framing members exceed 18% materials moisture content or if insulation is wet or have a high moisture content .. Exhaust fans shall be provided from each room containing a bathtub, shower, or tub/shower combination; exhaust fans shall 806.3 Bathroom exhaust fans comply with ASHRAE 62.2, Section 5; exhaust fans shall be ENERGY compliant; exhaust fans shall terminate outside the building HV AC filters shall be rated at !vIERV 6 or higher. Filter grills and 806.4 Filters duct systems shall be sized to prevent pressure drop across the filter. CCWG ImplementatlOD Plans (As Adopted by City CounCIl) July 1,2008 22 of 58 12-48 Uolikeother green programs, however, there is no requirement in the HCD portion of the California Green Building Code to exceed Title 24. It is the energy efficiency portion of any green prograni that is responsible for the carbon dioxide savings. Thus, the HCD program on its own will do little to combat global warming, but when paired with a City requirement to reduce carbon, the HCD program is on par with the other green. programs found nationally and throughout the state. The HCD language is closely modeled on the soon to be published ANSI 700 National Green Building Standard. The City ofChula Vista GroWth Management Ordinance currently requires a Water Conservation Plan (WCP) to be submitted with all Sectional Planning Area plans, tentative subdivision maps, or with major development projects. In May 2003, the City. adopted WCP guidelines in order to implement this requirement. As a companion eomponent to this program in the Turf Lawn Conversion program (measure #7), the City would review the state Model Landscape Ordinance and update the Landscape Manual and WCP guidelines to encourage additional water savings. City staff and . builders will need to be trained on the requirements of the California Green Building Code. Since this training will ultimately be necessary, focusing on the California Code eliminates the need to train for a local green building code ~ow, and the California code later. Green Awareness PrOgram An education and outreach effort will help to highlight energy saving steps homeowners and building operators can take to help reduce their carbon footprint. The science and findings behind the CCWG's measures should be made available to the public. Education and outreach efforts should include what the CCWG recommendations say and why they should be implemented. Distinctions should be presented between basic Energy Code compliance, the Chula Vista Green Building Standard and the upcoming California Green Building Code. Between these standards, a new or substantially remodeled structure will combine an energy efficient building envelope, building systems, water conservation, increased comfort and cost savings as well as a much healthier indoor environment and provide measure implementation tirnelines and guidelines for all aspects of the outreach and education program.. Information dissemination should be through the City's Building and Planning Departments many outreach resources such as their "Sustainability Website," newsletters, seminar series, news releases, brochures and fact sheet stations as well as other marketing approaches and media. A carbon calculator is another way-to encourage those not building or retrofitting to start thinking about reducing their footprint. Green Awareness will be spread through training City staff and builders on the requirements of the California Green Buildi~g Code. All new buildings in Chllla Vista shall include a Green Awareness section in the Homeowner or Maintenance and Operations Manual. This would contain an overview of the energy and cost saving features as well as factoids such as that a Plasm.a screen television uses as much electricity as a refrigerator. Policv Guidelines and Regulatorv Amendments In order to implement the Building Carbon Reduction Benchmark Program, several policy documents and development regulations will need to be modifie.d to reflect new green building standards. This program will likely require amendments to the City's adopted Air Quality Improvement Plan (AQIP) guidelines, Growth Management Ordinance, Design Manual and Guidelines, and the City's Municipal Code. The Green Building Standards Program will also require amendments to the Zoning Ordinance in order to implement any proposed community and/or site and building design standards. LEED-NC (New Construction) an\i LEED-ND CCWG Implementation Plans (As Adopted by City Council) July 1,2008 23 .of 58 12~49 (Neighborhood Development) will continue to be considered and encouraged as the City amends the Zoning Ordinance and Design Manuals. Although Chula Vista is creating its own Green Building Standards program consistent with the direction of State legislation for building codes, Chula Vista will continue to use and consider (according to General Plan policy) LEED-NC and LEED-ND, as long as they are national standards embraced by the broader architectural and development community. These LEED standards are now included and available through the Urban Core Specific Plan as options and are coupled with development incentives. All proposed regulatory amendments will be vetted through a public process that will encourage community and stakeholder input. Following adoption of these proposed changes to the City's policy guidelines and development regulations, staff will evaluate and implement a process to align the Green Building Standards program and the Zoning Ordinance and Design Manual modifications with the California Environmental Quality Act (CEQA) environmental review process. PERFORM.4.NCE METRlCS .' The implementation of this measure requires an addition to the City~s municipal code outlining the new green building standard. Performance would be gauged by the sum of carbon savings of each permit granted and building built in comparison to the anticipated savings achieved through compliance v,ith the minimum requirements of the applicable version of Title 24. TIMELINE The program's implementation timeline is graphically summarized below. The CGBC is currently in a 15-day comment period, but once it is approved, the Chula Vista City Council could also approve the code. The implementation of the Chula Vista Green Building Standards could occur as soon as municipal codes are amended and adequate notice is given to the public. The fact that the implementation and enforcement process for building new structures is already in place shortens the recommendation's implementation. Findings of Fact would need to be filed with the BSC. Authoring and creation of fliers (builder, homeowner, building operator and carbon reduction checklist) could be done by staff or outsourced, depending on capabilities and time. In addition, Planning and Building Department staff will need to be trained on CGBC, the Chula Vista Carbon Reduction Checklist, 2008 Title 24 code changes and ASHRAE 62.2. CCWG [mplernentation Plans (As Adopted by City Council) July l, 2008 24 of 58 12-50 CCWG MEASURE #4: GREEN BUILDING STANDARDS Implementation Plan Timeline PROGRAM MILESTONES F.b 09 . .A.dopt Community Sustain ability provisions Oc11J8 . Adopt Carbon ~educlion Benchmark/Early Green 81dg Cod. May 09 . Provide staff &industry trnining on 1'24 .July 09 . lmplem ent New Title 24 June '08 J '09 July '09 S.pt 08 . Distribute Graen 9uilding . Awareness Materials Oae OS . File raquast 10 adopt .Green 8ldg Standard . Update fee schedule to rl!flect additional PC &.Insp workload June 09 . Potential l\B 32 compliance BUDGET & FINANCING Cost for carrying out the four main implementation components. vary by component and are outlined below. Final costs and budget implications will need to be determined and presented as the various program components are finalized and returned for Council action. Building Carbon Reduction Benchmark Program- The Building Carbon Reduction Benchmark Program does. not require adJiitionalfield inspections by Chula Vista inspectors so additional staff should not be necessary. Inspection criteria and documentation, however, will expand requiring more time per project. Information dissemination can occur in printed form at the permit counter, vendor and material outlets, and professional meetings. Information can also be distributed on the City website. Early Green Building Code Adoption- Staff will be working with our consultant, ConSol, to identify associated costs and will return . those to Council when available. Green Awareness Program- Staffing at 15% of a Building Inspector III: $22,500 annually Outreach and awareness publications: $15,000 annually CCWG Implementation Plans (As Adopted by City Council) July 1,2008 25 of 58 12-51 The City currently has a grant application in under the 2009-11 SDG&E Partnership Program funding cycle to cover these costs, and should hear back by July 2008 if we are successful. Policy Guidelines and Regulatory Amendments- The Planning Division staffmg cost estimate for implementation of the "Policy Guidelines and Regulatory Amendments" is approximately $75,000. An additional $2,500 will be needed for publications of revised documents, bringing the total one time budget cost to $77,500. CCWG #4 - Green Building Standards - Budget City Staff $15,000 $280,000 Consulting Services $25,000 $20,000 Carbon Reduction Marketing $20,000 $5,000 Benchmark Program Other Commodities $15,000 $4,000 TOTAL $75,000 $309,000 City Staff $15,000 $280,000 Early Green Building . . Code Adoption Other Commodities $15,000 $5,000 TOTAL $30,000 $285,000 City Staff $22,500 $22,500 Green Awareness Marketing $20,000 $15,000 Program Other Commodities $10,000 $5,000 . TOTAL $52,500 $42,500 City Staff . $75,000 $10,000 Policy Guidelines & Regulatory Other Commodities $2,500 $1,000 Amendments TOTAL $77 ,500 $11,000 TOTAL $235,000 $647,500 CCWG Implementation Plans (As Adopted by City Council) July I, 2008 26 of 58 12-52 MEASURE #5: SOLAR & El'/""ERGY EFFICIENCY CONVERSION OVERVIEW The City of Chula Vista Climate Change Working Group's (CCWG) recommendation #5 urges the City to facilitate widespread installation of solar photo voltaic (PV) systems, thermal solar (hot water) and other non fossil fuel-based renewable energy options on commercial, residential and municipal facilities by developing and implementing a renewable energy conversion program. As proposed, the "Solar & Energy Efficiency Conversion" (SEEC) program is intended to help the average residential and commercial consumer overcome institutional barriers, up front capital costs and time constraints to installing renewable. energy, water conservation and energy efficiency llpgrades. . The. program provides participants a cost- effective, less time-consuming installation and fman<::ingoption for upgrading their homes and facilities, while creating a sustainable economic stiinulus and job creation program for Chula Vista. . The program's primary components include (1) Identifying the energy and water upgrades that help reduce ratepayers monthly costs, (2) Executing a competitive bid process that identifies participating contractors and establishes maximum prices and minimum warranty and service standards, (3) aggregating participants geographically to harness their collective purchasing authority. and maximize the potential for installation efficiency and savings, (4) Establishing voluntary special assessment districts to provide participants with a financing option to fund their improvements, (5) Linking local vocational job training in energy and water conservation with focused busmess recruitment and (6) Updating municipal codes to encourage renewable energy and conservation product installations and to remove institutional barriers. The proposed program is graphically summarized below: CCWG MEASURE #5: SOLAR & ENERGY EFFICIENCY CONVERSION Implementation Plan Summary Solar & Energy Efficiency Conversions (SEEC) . Provide cost.effectrve installation and fin ancing opportunities for residentS and businesses interested in energy efficiency and solar energy retrofits while creating an economic scmulus for the corrmunity . Promote the future installation of solar energy sys~ms through revisions to the municipal code . I ~ ~ . .. Aggregation Blocks Assessment Vocational Training Municipal Energy & Ider.tify' Energy U.ogra..."'es Districts & Job Creation Water Codes . Identify energy and water . ,~3rticipants are able to . With Southvvestem College . Update .Solar HotWarer upgrades and potential energy finance SEEC retrofits and local high school distnct, Pre-Plumbing" code to add cost s3Vings through a va luntaty fe e link vocational tra ining with speCificity about orienration assessment which is added program implementation & siting OJmpetiiive 8id Process to property tax raUs . Use program as leverage . Create .Solar Elecoic "Initiate a bid process to quality . A$s~ssment fee is tax to recruit contractors, Pre.Wiring" code to canC'actors deductible for participants equipment vendors & promote fut1.Jre installation . =.nsure proper warranty & and reC'Onrs do nonri(;!ger a manutacOJring facilities to . Updare Municipal &. Counl:'J' property tax Chula Vista liabili~ coverage .1. reappraisal Zoning codes to reflect . Streamline permitting and solar requirements iiicenttve application .orocess Aggregate PartiCipants . Geographically aggregate to further lower costs . Ensure equitable opportunities for all interested consumers CCWG Implementation Plans (As Adopted by City Council) July 1,2008 27 of 58 12-53 IMPLEMENTATION The Department of Conservation & Environmental Services (CES) will administer the SEEC Aggregation Blocks, Assessment Districts and Vocational Training/Job Creation components with support from the Finance Department, Office of Budget & Analysis and Office of Economic Development. CES will also work with Planning & Building Department to update Title 20 Energy Conservation and Title 9. 7 Water Conservation as well as related sections of the City's Municipal Code. The implementation process for each component is outlined below: Agzregation Blocks The proposed program will geographically aggregate home and business owners who voluntarily choose to retrofit their homes and businesses with energy and water efficiency upgrades and/or install solar photovoltaic (electric) and solar hot water systems. By combining energy and water effi.<:iency upgrade options with solar panel installation, the consumer will be presented with options that minimize their total project cost, maximize their monthly savings and emphasize a balance of greenhouse gas (GHG) reductions and lifestyle choices (Appendix G). Aggregating block areas will also allow staff to naturally phase the program into the community on a block- by-block basis and to adaptively manage its implementation. CES will implement an open and competitive bid process to identify contractors, who understand the required local installation standards and are committed to assisting staff market the energy/water efficiency upgrades and renewable energy systems to interested property owners. Although the contract for installation work will be between the property owner and the City- qualified contractor, the City will be able to add additional value to consumers by negotiating a lower cost for equipment and installation, establishing minimum installation warranty, service and liability standards, streamlining the contract, rebate application and permit process and saving consumers the time associated with researching, analyzing and executing these phases of their projects. Staff will work closely with the City Attorney's Office in establishing the specialized contractor bid process or similar approach and staff anticipates that participating contractors will be qualified through a 3rd party program such as the California Center for Sustainable Energy, California Energy Commission, US Department of Energy and US Environmental Protection Agency. Initially, participating contractors would be assigned to a limited geographic area. Contractors, who demonstrate high levels of service quality, customer outreach and warranty support and successfully meet the performance standards outlined in the competitive bid process, will be permitted to expand into other geographic areas. .Staff hopes to ensure that all geographic and socio-economic sectors of the City receive equitable access to the program. The City will also use aggregation to provide an incentive to ensure that equipment, materials and supplies are purchased from a Chula Vista business that provides comprehensive warranty and service for their supplies and equipment. Additionally, the City will use the competitive bid process to help connect employers ",ith the local vocational education program to foster growth in a new sector of "clean technology" jobs and further reduce the program's carbon footprint by facilitating the use of local labor. Assessment Districts. The City will offer participating property owners the option of fmancing the energy and water efficiency and renewable energy upgrades through a voluntary fee assessment. Participating CCWG Implementation Plans (As Adopted by City Council) July 1,2008 28 of 58 12-54 property owners would add the costs of investing in energy and water improvements to their property's tax roll (see Budget & Financing section for discussion of general bond issuance). These costs will be paid back over time through semi-annual ta.'{ payments and can be structured to be offset by the energy and water savings generated by the improvements chosen by the participant. This process is designed to overcome the barrier of upfront costs for installing renewable energy technologies which many industry experts and regulators have identified as a .significant barrier to broad renewable energy adoption. Participants would also have the option of participating in the aggregation process and funding the improvements on their own. According to the County Tax Assessor, the energy and water efficiency upgrades and renewable energy installations proposed by. the program will not trigger a property tax re-appraisal. Vocational Training & Job Creation In coordination with Southwestern College and the local high schoo.l district, staff will link vocational training opportunities with the program's implementation. Specifically, contractors qualified by the City to perform energy efficient upgrades and solar energy installations (as part . of the SEEC Aggregation Blocks) will be encouraged to hire new employees from the vocational education program as the program matures and produces qualified graduates. Staff will work with the vocational education program, local contractors and local suppliers to establish incentives in the bid and marketing assignment process to establish incentives for local hiring. Staff will use the SEEC program as an economic stimulus and business recruitment tool for Chula Vista. As previously mentioned, contractors qualified by the City to perform installations will be required to purchase related program materials and equipment through a Chula Vista- licensed business. Staff will use the SEEC program as leverage to recruit solar and energy efficient equipment installers, distributors and manufacturers to establish a "clean technology" business division within Chula Vista. In addition to generating employment opportunities and sales tax revenues, the 'new' business's proximity could lower overall equipment, installation and transportation costs and GHG impacts for SEEC program participants. Once the size of the Chula Vista and regional market potential is established, staff will re-contact renewable energy and water energy product manufacturers and suppliers about esta.blishing manufacturing and assembly plants within the Chula Vista and south San Diego County area. Municipal Energy and Water Conservation Codes Chula Vista's Municipal Code (20.04.03.0) requires that "all new residential units shall include plumbing specifically designed to allow the later installation of a system which utilizes solar energy as the primary means of heating domestic potable water" (Appendix H). To maximize the effectiveness of the "Solar Hot Water Pre-plumbing Standard," staff will update the code to include additional language about site orientation and solar access. Staff may also need to m'lke revisions to the City's Zoning Ordinance, accordingly. To expand opportunities for the cost- effective installation of solar energy systems in the future, City staff will also develop an amendment to the Municipal Code's Title 20 "Energy Conservation" section in order to require pre-wiring for solar photovoltaic systems in new and remodeled residential units. The code amendment will include specific guidance about site orientation and solar access. In addition, the code will complement sections of the Municipal Building and Zoning Code being updated as part of CCWG Measure #4 (Green Building Standard) which will likely address passive solar building design, new solar photovoltaic installation, energy efficiency and green building standards being promulgated by state and local agencies. CCWG Implementation Plans (As Adopted by City Council) July 1,2008 29 of 58 12-55 PERFORMA1~CE METRICS The results of this program will be tracked on a project-by-project basis and summarized to identify its "net" impact on the City's GHG emissions reduction goal. Specifically, the Solar & Energy Efficiency Conversion program's performance will be measured by a suite of metrics including the number of energy efficiency improvements, participating homeslbusinesses, solar systems installed, renewable generation kilowatts installed and the corresponding kWhlTherm savings. Staff will also work with San Diego Gas & Electric (SDG&E) and the California Center for Sustainable Energy to quantify the number and amount of incentive funds solicited as a result of the program. In the current greenhouse gas inventory protocol, the community's carbon emissions are directly extrapolated from citywide energy use, which is provided in an aggregated format by SDG&E. Because the SEEC program will improve energy efficiency and/or replace grid-source energy with on-site renewable energy, it will lead to overall energy use reductions in existing individual homes and businesses that participate in the program. Because the program is voluntary and incentive driven, its fmal impact on citywide "net" GHG emission reductions will depend oIl, the level of community participation and the effectiveness of other CCWG Measures (such as the Green Building Standard) to ensure that future growth is carbon neutral. TIMELINE Prior to enrolling interested property owners into the program, components #1 (Aggregation Blocks) and #2 (Assessment Districts) would first require establishment of fmancing mechanisms and a contractor' bid process which is estimated to occur in summer 2009. Component #3 r:v ocational Training) would be integrated as the program is launched and implemented. Local educators have estimated that it would take 2-3 years to establish a curriculum and matriculate the first class of qualified energy efficiency/solar apprentices. Finally, refining the current solar hot water standard and creating a solar electric pre-wiring code (component #4) would take approximately 3-6 months and would require the necessary public notice periods and public readings before Council action. The program's time line is below: CCWG MEASURE #5: SOLAR & ENERGY EFFICIENCY CONVERSION Implementation Plan Tlmeline PROGRAM MILESTONES Sept '08 . Draft & present to Council solar code ,-evislons Ju"" .09 [I Oct '09 . Secure bend andlor ... ". . local fee authcnty for . =staohsn S,:l~Cl~1 financing I assessment dlstn:ts Jur: '08 i I I I I I I I June '10 Jun~'09 l June '08 .Irr.,cle,r;",ent Solar Hot \Narer pre-plumbing requirement . Develop guides far Sc:Jar ,=Y pre-wiring Aug '09 Sept '09 . Initiate contractor bid process -Hire & tnin soff . Develop program materials CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 30 of 58 12-56 BUDGET & FINANCING The SEEC program's implementation cost (exclusive of energy efficiency and solar energy equipment and installation) is estimated to be $347,800 per year in staffing, supplies and services. An additional $75,000 may also be needed initially to provide resources to update and create the aforementioned energy-related municipal codes. This program cost assumes full funding of all seven CCWO measures and will leverage each measure's budget to provide partial cost sharing of staff time and program materials. For example, staff enrolling homes and businesses in the Solar & Energy Efficiency Conversion program will also promote the Turf Lawn Conversion (CCWO Measure #7) program to property owners leading to lower implementation costs for each program and increased program participation. A portion of each measure's budget will also partially cover overall administrative and performance tracking costs associated with the City's climate protection efforts. The program's budget is outlined below: CCWG #5 - Solar & Energy Efficiency Conversion Program - Budget City Staff $219,000 SEEC Aggregation Blocks, Assessment Districts & Vocational Training' Interns $49,000 Marketing $50,000 Other Commodities'* $29,800 TOTAL $347,800 City Staff $70,000 - Municipal Energy Codes Other Commodities 55,000 - TOTAL $75,000 -- TOTAL $75,000 $347,800 'Assumes cost sharing between CCWG Measures #3, 5 & 7 for staff time & prograr:n materials -Budget does not include capital costs for solar & energy efficiency improvements (dependent on participation levels) To fund the program, staff is recommending that a combination of bond and local "fee authority" funding be pursued. The bond would be used to cover the initial capital costs associated with energy efficiency and solar retrofits for public/private facilities and will allow this measure to establish an economy of scale that can maximize the benefits of aggregated and competitive purchasing to reduce consumer and City costs. A fee authority would provide long-term, sustainable funding for the program to supplement the initial bond authority and provide. a complementary revenue source to fund a portion of the costs for transitioning to on-site renewable energy at City facilities. Both 'funding mechanisms will also be complemented by local, state and federal rebates, tax incentives and credits. In addition, carbon emissions CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 31 of 58 12-57 I'nitigation or offset fees being developed through CCWG Measure #4 (Green Building Standard) could be applied to the SEEC program to subsidize energy efficiency and renewable energy upgrades at municipal facilities or within existing building stock preferably targeting lower income families and service institutions (such as low income housing, shelters etc.) CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 32 of 58 12-58 MEASURE #6: SMART GROWTH AROUND TROLLEY STATIONS OVERVIEW . The City of Chula Vista Climate Change Working Group's (CCWG) recommendation #6 states that the City should "facilitate 'smart growth' around the H St., E St. and Palomar St. trolley stations." This recommendation embodies the fact that smart growth is typified by a compact, efficient and environmentally sensitive pattern of development that provides housing, employment, service uses and public facilities in a mixed-use format close to transit and other modes of alternate transportation. This improves and promotes the ability to conveniently access uses by walking and/or transit, thereby reducing automobile use and the associated burning of fossil fuels that contribute to greenhouse gas production. Transportation emissions represent . approximately 48% of the Chula Vista community's carbon footprint, whereby reduction in Vehicle Miles Traveled (VMT) through promotmg pedestrian and transit friendly smart growth environments, can have a meaningful effect on carbon emissions. The staff agenda report which accompanied the Climate Change Working Group's recommendations also noted that Recommendation #6 would not require much, further implementation action because mixed-use, transit-oriented land use designations, policy and zoning has already been incorporated into City planning documents for the subject areas; namely the updated General Plan (GP) and the Urban Core Specific Plan (UCSP). While those plans have been adopted, there are several work efforts necessary in order to move from those plans to facilitate the envisioned smart growth development with the E, H and Palomar St. Transit Focus Areas (TF As). The four areas of work presented in this implementation plan include (1) implementation of the UCSP through preparation of a framework plan for redevelopment of the area around the ESt. station, (2) completion of the H St. Comdor Study called for in the General Plan to address more detailed land use and transportation planning provisions along H St. from the trolley station east to Third Ave., (3) preparation of Specific Plans within the Southwest area, and (4) other related regional efforts to prepare design studies for needed improvements along the 1-5 corridor to serve the sites. As described further in this document, some aspects of these four efforts are included in the current Work Programs of the involved Departments, while others will require further work program and budget authorizations by Council. Ll\1PLEMENTATION The Planning and Building Department will primarily administer the City's Smart Growth planning and zoning efforts outlined below but will need to work, and is already working, in partnership with the City's Redevelopment Agency and Housing Authority, Engineering Department and others to develop and implement related plans, programs and projects. The implementation process for each component is outlined below: . CCWG Implementation Plans (As Adopted by City Council) July 1,2008 33 of 58 12-59 :1 , CCWG MEASURE #6: SMART GROWTH AT TROLLEY STATIONS Implementation Plan Summary Updated City General Plan (Dec. 2005) '?romote. Smart Grnwth and Trans" Oriented Development around existing and future TroDeylBllT stations, and establisnes high density and rnixed..use fand use designatjons and supportive porlCie3. Urban Core Specific Plan Implementation .prepare tr,'!tI\eW'Or1( development plan for super. blOck area around E St. troJley station. '"Galaxy' PfOjed proposal under r....iew for portion 01 City corporation yard site south of the E st. station. -Example 2-D visuait:etion scenario under SANDAG grant . H Street Corridor Study -fund end cooduct Urban Land Instilule (ULn collaboratIVe design charretle. -Prepsre amendment: to the General Plan andlor lieSp tor consideration based on the ch8rrette outcomes. -COmplete example 3-D visualization scenano under SANDAG grant. Southwest Specific Plan(s) 'Complete first phase of Southwest liniled in Action program currently undelwsy. 'Pr->..pare work program and budget for Counci cons.iderstion to r..:ndertalce a SpecifIC Plan lor !he Palomar Galew.... TF A to implement !he GPli. Other Related RegionallEfforts . lde11tity and allocate City match funding to commence !-. S Corridor Study wilh SANDAG ond e etron.. "Nark with =AGIMTS to refine, design, tuJIy 1und and schedule !roSey grade separstion projects tor both E st. and H St. 1. Urban Core Specific Plan 1m1;llementation E Street Transit Focus Area I Galaxy ENA - The adopted General Plan identifies the area surrounding the E St. trolley station as the E St. Transit Focus Area and calls for high intensity mixed use development within the superblock between 1-5, F St., Woodlawn Ave. and E St. The area was subsequently zoned as part of the UCSP's UC-IS District. "While much of the land area is owned by the City and MTS as part of the City's old corporation yard and trolley station site respectively, there are several other privately held parcels. Successful redevelopment as a high intensity TF A will require joint coordination and planning for matters such as infrastructure, circulation, site design, building massing, and parking. . The Chula Vista Redevelopment Corporation is currently under a 120-day Exclusiv~ Negotiating Agreement with Galaxy Commercial Holding, LLC to explore a transit-oriented development project on the City's former corporation yard ("Corp Yard") located immediately adjacent to the E Street Trolley Station. A premise of the ENA and development of the Corp Yard site is that they will create momentum and market confidence for private investment in the rest of the E Street Visitor Transit Focus Area ("TF A"). The ENA requires a Comprehensive Site Design Study to consider such factors as the City's adopted land use plans and policies, adjacent land ownerships and . property interests in the subdistrict, parcel configurations, circulation and traffic patterns, environmental factors, plans for regional transportation facilities, Bayfront planning and redevelopment activities, and public input. The Study will also include proposed Floor Area Ratio ("FAR") distributions, phasing strategies and pedestrian and vehicular circulation patterns on the Property and surrounding properties within the UC-IS Subdistrict, along with site plans CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 34 Df 5 8 12-60 ,. depicting Developer's proposed development scenarios. Staff is currently working with Galaxy on the Study and their project development proposals which are due between now and mid-July 2008 when the current ENA period expires. Based on progress of the work, the Agency will then need to consider whether to extend the ENA. 2-D Visual Simulations of E Street IFA - As part of SAl'lDAG's Smart Growth Implementation program, the City has recently received grants for the preparation of computer visual simulation models for both the E Street IF A and the H Street Corridor. Under the grants, SANDAG's consultant Urban' Advantage will prepare a computer generated visual simulation of urban redevelopment of the E St. IF A. From a chosen vantage point at E St and Woodlawn Ave., the computer simulation will depict photo- realistic phased development intensification of the area consistent with the GP and UCSP . visions. The simulation will assist staff in working with the public and decision makers to better envision and understand how urban redevelopment of the site may look, particularly from the standpoint of building massing and building heights. Initial work by the consultant Urban Advantage has been completed, and staff is currently reviewing a draft of the modeling work. A final product will be available by July 2008. 2. H Street Corridor Study Urban Land Institute Program - The December 2005 General Plan designates the H St. corridor between the H St. trolley station and Third Ave. as a Study Area. H St. serves as the major commercial and office corridor connecting the Bayfront and the H Street IF A with the downtown -Third A venue area. Considering the large property ownerships and potential for expansions and redevelopment involving the South County Court House, Scripps Hospital, Chula Vista Center, and a new hotel/convention center on the Bay Front, H Street provides great opportunity for revitalization. While the General Plan and uCSP provided a framework, they did not provide a cohesive road map to physically and economically proceed with actual redevelopment including land assembly, parcel configuration, environmental factors, floor area ratio (FAR) distributions, circulation and traffic patterns, and plans for regional transportation facilities.. In order to move development efforts' forward, the Redevelopment Agency is clliiently pursuing sponsorship of an Urban Land Institute's CUll) panel that will bring planning and . real estate experts to Chula Vista to conduct a five-day Advisory Services Program. The Program will use a public charrette-type process to identify and address relevant issues/challenges, and provide an implementation strategy for the revitalization of. the Corridor. From staffs perspective, the process will playa key role in working to bring the community together on a workable vision for pursuing projects within the Corridor. Staff will be coming forward to the Agency on July 22, 2008 to appropriate $120,000 to fund the ULl program. If approved, the ULl program is currently anticipated to take place the week of October 12 - 17, 2008. Potential General Plan and/or UCSP amendments - Dependent upon the outcomes of the ULl program, it may be necessary to undertake revisions to the General Plan and/or UCSP to effect land use and regulatory changes to support desired redevelopment. Following the October session, staff would need approximately 45 days to develop a work program for any CCWG Implementation Plans (As Adopted by City Council) July I, 2008 35 of 58 12-61 potential GP and/or UCSP amendments, and could return to Council in January 2009 to present that. Dependent upon the nature and extent of the potential amendments, it could take 6 to 9 months or more to complete them, with staff returning for Planning Commission and Council public hearing consideration of amendments beginning no sooner than Fall 2009. 3-D Visual Simulations of H Street Corridor - As noted above, the City also received a SMTIAG grant for consultant Urban Advantage to prepare a photo-realistic visual simulation of a redeveloped H Street corridor. Staff currently intends to tie the visualization work to completion of the ULI effort, whereby the SANDAG modeling efforts would incorporate land use and building form outputs from the ULI charrette, and provide 3-D visual imaging of the potential redevelopment of the Corridor to enhance public understanding and build support for subsequent planning and project work. Staff has already begun work with SANDAG's consultant with regard to their scanning and input of base information of existing conditions. Completion of the modeling would take place during November and December 2008. 3. Preparation of Southwest Specific Planes) With regard to the Palomar Gateway TF A, the General Plan calls for the preparation of a Specific Plan or other comprehensive zoning and design tool to carry out urban revitalization and redevelopment within the TF A which includes the Palomar trolley station and surrounding areas. The General Plan also identified the need for Specific Plans in several additional locations within the Southwest Planning Area. While current Planning and Building Department work programs generally identify the need for these Plans, there is not available staffing, consulting and budget resources available to prepare them. The shaping of thQse work programs and budgets will also depend on whether one overall Southwest Specific Plan is undertaken, or as staff currently envisions, the preparation of individual, smaller Specific Plans focused on particular areas such as the Palomar TF A. . Southwest United in Action program priority setting - Prior to proceeding with further detail work program and budget planning for Specific Plans, staff is currently engaged in completing the first phases of the Southwest United in Action (SUA) program to gauge the range of community issues, and related community priorities. Initial community inputs on issues were solicited at a Community Convention on March 15, 2008, and staff will be holding a second Community Convention on June 21, 2008, to solicit input on action items that are most important to the community, including preparation of Specific Plans. Staff will subsequently return to Council by fall 2008 to present community priority inputs. Palomar Gateway TF A Specific Plan - Should the community identify a priority for preparation of this Specific Plan through the above SUA work, and upon subsequent direction from the City Council, staff will prepare a work program arid budget for a Palomar Gateway TF A Specific Plan for review and consideration by Council. Some work towards a Specific Plan for this area (entitled the Palomar Gateway Conceptual Design Study) was prepared during the General Plan Update, and could be used to jump start the effort. rfPlan preparation is identified as a comriJ.unity priority, and supported by Council, it would take approximately 60 days for staff to return with a work program and budget proposal. Assuming Council considers and provides direction on community priorities by the end of CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 36 of 58 12-62 2008, staff could return the work program for consideration by March 2009 as part of the .FY09-10 budget proposals. If approved, preparation of a Specific. Plan would take approximately 12-18 months and could commence after July 2009. 4. Other Related Rellional Efforts There are also two major regional efforts that must be undertaken and completed in order to ultimately develop and build out the smart growth land use plans and intensities for the '. '. trolley station areas, particularly those at E St. and H St. These include undertaking the 1-5 Corridor Study with SA.NDAG, and securing a funding program for the grade separation of the trolley crossings at E and H Streets. 1-5 Corridor Study - This Corridor Study is a needed prerequisite in the planning and design of future transportation improvements along the 1-5 corridor necessary to ultimately serve development in western Chula Vista and the Bayfront. The improvements would encompass highway travel lanes, HOV and transit, as well as reconfiguration of ramping, the bridge decks, and grade separation of the trolley crossing at E and H Streets. Considerations for one component affect the rest, and the Corridor Study serves as a mechanism to review and address the interrelationships prior to proceeding with the next phases of design. Staff began meeting almost two years ago with SA.NDAG regarding the scoping, cost and timing for the work, and has since developed a work program and budget with SANDAG aDd Caltrans. The Study has a matching component for Chula Vista. Staff has been working with Congressman Filner's office over the last year to see through legislation that was approved on June 6, 2008, that redesignated approximately $2 million in federal SAFETEA- LU funds to cover our matching component. SANDAG, Caltrans and City staff will now be . refining the scope of work. The Corridor Study project was defined as a project in the Western CV TDIF program approved by Council in March 2008. The 24-month Study\.Vill commence in FY08-09, with completion anticipated by FY 2010-11. Trolley Grade Separation funding - Grade separation of the trolley crossings at both E St. and H St. \o\rill be needed to accommodate urban development intensification in wester.n Chula Vista by allowing traffic to access and cross 1-5 absent the current impediment of the trolley gates. This also affects the design for redevelopment at both of these TF As. Costs for the separations are estimated at .$36 million for H St. and $40 million for E St. SANDAG has identified funding for approximately 50% of the costs, while 28% of the costs are. . identified as ultimately being funded through the WCV TDIF approved by Council in March 2008. Staff is currently working with SA.NDAG to make grant applications to the. State for additional funding, and requires a letter of approval from the Mayor to make the application that is due by ltme 19, 2008. Notification of any grant awards is anticipated in Sept./Oct. 2008, and staff will report back to Council at that time. In the event that sufficient grant monies are not received, staff will need to work with the. Council to identify and pursue other sources. CCWG Implementation Plans (As Adopted by City Council) July l, 2008 37 of 58 12-63 PERFOR.MANCE .METRICS Given that the items under this Implementation Measure involve proposed planning and project efforts, the performance metrics would be completion of each of the above identified planning and study components. TIME LINE Following is an overview of milestones associated with each implementation component pursuant to the prior discussions and reflected in the accompanying time line graphic: CCWG MEASURE # 6: SMART GROWTH AROUND TROLLEY STATIONS Implementation PlanTimeline July 08 . Complete E St TF-'. Comprehensive Design Study . Complete initial Gala"" I' Oct 08 I s~e plan for old Corp . ConducWU H St Study Yaid site PROGRAM MILESTONES Nov I Oec 08 . 3.0 visuali:ation far H Street Corridor . ':ansider whether to extend Galaxy EN.t;, Oct. 08 I II . July'Oa II i I I i I[ July 06 II- Reauest to ~ency to rund H St ULI Study I I . Grade separation grant notification I i I '1 Jan '09 I 1uly '09 Sept. 08 . Start 24-manth 1-5 Corridor Study Fi09.10 Dec 06 . Prepare Palomar TF.~ SpeCific Plan . Council action on SVYtJA priorities July 08 . E St. 2.0 visuil simulation from S-'NDAG Mar 09 . '0lork program &. budget . ror Palomar Gateway SP Implementation component #1 - the E St. TF A Framework Plan is due to the City from Gala.xy by mid-July 2008 per the current ENA. This includes their development of an initial site plan for development of the City's prior corporation yard site. If more time is needed or desired, the Agency would need to extend the ENA. The 2-D visual simulation work with SANDAG will be completed by July 2008. Implementation component #2 - The request for Agency funding of the ULI Study will be brought forward on July 22, 2008. If approved, the ULI activities would be conducted during the week of October 12-17, 2008. Based on outcomes of the ULI efforts, any desired General Plan and/or UCSP amendments would take a minimum of approximately 6 to 9 months to complete, with the earliest hearings starting in fall 2009. Per agreements with CCWG Implementation Plans (As Adopted by City Council) July 1,2008 38 of 58 12-64 SAL"\JDAG, the 3-D visual simulations would follow the l.JLI work, and be completed by December 2008. Implementation component #3 - If identified as a community priority through the SUA work by August 2008, the earliest a work program and budget for a Palomar Gateway Specific Plan could be returned for Council consideration would be November 2008. If authorized, preparation of the Specific Plan would take 12 to 18 months. Assuming a January 2009 start, the earliest time for completion would be spring 20 W. Implementation component #4 - Work program and funding clarifications with SAL"fDAG for the 1-5 Corridor Study are anticipated over the next 2 months, with the Study getting underway in FY2008-09. . The 24-month Study would be anticipated for completion some time in FY20 1 0-11. State grant applications for trolley grade separation funding are due June 19. Notification on grant awards is currently scheduled for Sept./Oct. 2008. BUDGET Costs associated ,"vith carrying out implementation are comprised of several components, some of which are funded and budgeted, and others which v=.ill require future budget and funding considerations as follows: Implementation component #1 . Galaxy Framework Plan and Corp Yard S.ite Plan; privately funded. 2-D Visual Simulation; SAl"fDAG consultant services (grant) Implementation component #2 ULI Program; $120,000 funding to be requested from Redevelopment Agency. Potential General Plan or USCP amendments; costs unknown pending outcome of ULI program. Partial Redevelopment Funding possible, otherv=.1se will be General Fund request. 3-D Visual Simulation; SANDAG consultant services (grant) Implementation component #3 Southwest United in Action program; approved Redevelopment Agency funding. Palomar Gateway Specific Plan; estimated $250,000 for planning, $250,000 for EIR to be sought at a future date when work program and budget presented. Partial Redevelopment Agency funding possible, otherwise will be General Fund request. State law allows for reimbursement district t6 be formed encompassing parcels within the Specific Plan. Some grant funds may be possible, but have not yet been identified. . Implementation component #4 1-5 Corridor Study; $1.987 million in federal funding approved June 6,2008. Balance of costs by SM"DAG. Trolley grade separations; City WCV TDIF to pay 28% of costs currently estimated at $18.344 million for both E and H St. Should cost estimates rise, adjustments to the WCV TDIF would be necessary. SANDAG to pay 50% of project costs. . Balance of funds currently being sought via State grants. CCWG Implementation Plans (As Adopted by City Council) July 1,2008 39 of 58 12-65 CCWG #6 - Smart Growth Around Trolley Stations - Budget" UCSP Implementation E Street TOTAL ULI Program $120,000 -- H Street Corridor GP/UCSP Amendments -- ---- Study Simulation ----- -...--- TOTAL $120,000 --- Palomar Gateway SP $250,000 ----- Southwest Specific EIR $250,000 --- Plans TOTAL $500,000 ......--- 1-5 Corridor Study ----.. --- Other Related Trolley Grade Separations Regional Efforts" ------ ...--- TOTAL ---- ---- TOTAL $620,000 . . These projects' costs are necessary to implement the Council-approved General Plan & Urban Core Specific Plan and would be incurred whether or not the CCWG Implementation Plans are approved .. The City has already secured approximately $20.3 million for related regional smart growth efforts such as the 1-5 Corridor Study and the Trolley Grade Separations (E St. & H 51.) CCWG Implementation Plans (As. Adopred by City Council) July 1,2008 12-66 40 of 58 MEASURE #7: TURF LAWN CONVERSION OVERVIEW The City of Chula Vista Climate Change Working Group's (CCWG) recommendation #7 states that the City should "coordinate with Otay Water District, San Diego County Water Authority and the Sweetwater Authority on turf lawn conversions for commercial and residential properties." The measure was intended to help residents and businesses replace turf lawn areas with drought-tolerant plants (commonly referred to as "xeriscape" or "California-Friendly" landscaping). f>umping and treating water throughout California requires large amounts of energy and subsequently is a major contributor to greenhouse gas ernissions. The proposed outdoor water conservation program complements the local water districts' efforts and builds upon the City's existing NatureScape program. Specifically, the program's components include (1) continuation and expansion of the NatureScape program to promote water conserving and nature-friendly landscaping, (2) coupling of residential and business turf lawn replacement with the solar conversion aggregation block process (Measure #5), (3) converting select municipal facilities to low water use plantings and irrigation, and (4) updating various municipal landscape regulations and guidelines to comply with new state requirements and further promote outdoor water use efficiency. Components #1 and #2 would be voluntary and would be available to all Chula Vista residents and businesses, while Component #3 would apply only to City properties and rights-of-way. Component #4 would apply to new developments through updated municipal regulations. The proposed outdoor water conservation program is graphically summarized below: CCWG MEASURE #7: TURF LAWN CONVERSION Implementation Plan Summary NatureScape . On-site assessment by Cit, 'itaff at no cost to e'.'3lu3te ""theme!'" landscaping meets 'Sacky3rd Wildlife Habitat" and water conservation crireria . Education about additional water-savIng opporn.mities and apolicable incentives . Ceitlfied sites are provided a National Wiidlife Federaoon yard sign and certificate . Demonstration site~ created throughout community Outdoor Water Conservation Program . Promotes me replacement of turf laWTI areas 'lllitn water-saving plants 3f'Id irrigation systems Residential & Business Turf Conversion . A.ggregace homes and businesses interested in replacing VI,iater-thirstv turf lawn areas (in conjunction with Solar Conversion Program - CONG Measure #5) '. City' initiates a contracrof bid process ta install wat~r-wise pl:Jnts and irrigation systems for aggregated properties . Participants costS ~duced through aggregation an d City ensures proper warTant)" and purcnase or plants and equipment locally . Participants also have option of retrofitting intenarf3ucets and toilets at reduced prices Municipal FacIJities Turf ConverSion . Convert turf lawn areas at select municipal sites to water-wise plants and irrigation systems . ,~Qtentia! sites include municipal parks, medians and public rights-ot-way CCWG Implementation Plans (As Adopted by City Council) July 1,2008 12-67 Landscape Regulations Updare & Outreach . ,~eview and 8'1a\uadon of new o\/VR Madel,Landscape Ordinance . Upcate M unicipa! Landscaoe Manual & \.Itlater Conser.....atian Plan Guidelines accardingi'y' for Council review . i:duc3te residents, businesses, ccnU"3Ctars, developers and HOA..s about new landscape regulations and A818S1 . ,::lramotion of Nature'Sc3oe IMPLEMENT AnON The Department of Conservation & Environmental Services 'Will administer the NatureScape and Residential & Business Turf Conversion components, while the Plarining & Building Department and Engineering Department will coordinate the update of the City's landscape regulations. In addition, the Engineering Department will coordinate the Municipal Facilities Turf Conversion. All departments will work closely together to implement outreach and marketing efforts to maximize the program's cost effectiveness. The implementation process for each component is outlined below: NatureScape Certified Properties The current NatureScape. program works to promote nature-friendly gardening and landscaping throughout the community by educating property owners and "certifying" their properties. Specifically, residents and businesses that voluntarily elect to participate in the program receive, at no cost,. an on-site assessment by a City staff member who reviews their landscaping for the presence of food, water and cover for wildlife and the incorporation of water-conserving features such as low water-use plants, mulching and water efficient irrigation. Staff also educates participants about possible water-saving improvements and available incentives and rebates, if applicable. Residential or business properties who successfully meet the program's criteria are certified through the National Wildlife Federation's "Backyard Wildlife Habitat" program and receive an aluminum yard sign and certificate. The current program was developed and is being implemented with the support of Otay Water District, Sweetwater Authority, Chula Vista Garden Club, Bonita Valley Garden Club, UC Master Gardeners and the South Bay YMCA Earth Service Corps. As part of CCWG Recommendation #7's implementation, the current NatureScape program would be continued and expanded through additional staff and program funding for supplies and services. The new program would reach a broader audience through comprehensive marketing efforts and produce greater water savings (and related energy savings) . through increased staff technical support and program participation. The program will also engage the community through creation of water-saving garden and landscape demonstration sites at various community locations. The program would continue to collaborate closely with the .local water districts to leverage resources and to increase the program's cost effectiveness adding value for participants. The program's goal is to be the community with the highest number of certified properties in the United States. Residential & Business Turf Conversions Similar to the Solar & Energy Efficiency Conversion program (Measure #5), the proposed program will aggregate existing homes and businesses who are interested in replacing portions of their turf lawn areas with water-saving plant palettes and irrigation systems. Through a competitive bid or negotiation process, a single or multiple contractors will assist City staff in enrolling interested property owners and installing more water-efficient landscaping. By aggregating the participants, the City will be able to negotiate a lower cost (on a per square footage basis) for program participants. Staff will also be able to help reduce participants' costs by streamlining the application process for applicable incentives offered through Otay Water District, Sweetwater Authority, San CCWG Implementation Plans (As Adopted by City Council) July 1,2008 42 of 58 12-68 Diego County Water Authority and the Metropolitan Water District of Southern California. The aggregated bid process ""ill allow the City to ensure that the contractor is using appropriate plant material and irrigation equipment purchased from a business located within Chula Vista, providing a comprehensive warranty for their supplies and services and following proper municipal landscape plan approval procedures. To further maximize water use efficiency, participating businesses and homeowners may also elect to have the contractor replace old interior water fixtures and toilets with new water- saving models (see Measure #5). Tills approach satisfies real estate and developer representatives' request to not use change of property ownership to trigger mandatory retrofits of indoor plumbing fixtures. I Municipal Facilities Turf Conversions The proposed program aims to replace turf lawn areas at select municipal sites with water-saving plants and irrigation systems. In addition to reducing the City's water costs, the re-Iandscaped areas. will further provide a public demonstration of water-conserving landscape design principles and may reduce landscape maintenance costs. Selected municipal sites would be limited to turf lawn areas which are not . actively used by the public for recreation and would potentially include certain municipal buildings, park areas, medians and public rights-of-way. Landscape Regulations Update & Outreach By January 1,02009 the Department of Water Resources (DWR) will be releasing an updated Model Landscape Ordinance, which outlines statewide water-conserving landscape design criteria. Local governments will be required to adopt the model . ordinance or develop a new ordinance that is at least as effective as the statewide model ordinance by January 1, 2010. The ordinance would generally apply to landscaping for all new developments over 2,500 ft2 in area and to re-Iandscaping of some existing properties (certain property types are exempt), and would base design thresholds on a maximum water allowance. Outdoor water use throughout Chula Vista is mainly regulated through the City's Landscape Manual which outlines landscaping and irrigation requirements for all public projects and certain private projects and the Water Conservation Plan Guidelines which outlines water-conserving measures that need to be integrated into Sectional Planning Area (SPA) Plans, Tentative Subdivision Maps and major development projects with at least 50 dwelling units or equivalent water demand. The proposed program would provide funding for City staff to update these existing municipal regulations to meet and potentially exceed the new statewide Model Landscape Ordinance. The updated regulations would strongly emphasize additional outdoor water savings by further minimiZi.Ilg turf lawn areas, using water-wise plant types and installing weather-based and low-water irrigation systems. The program component will also involve actively educating Chula Vista residents, businesses and developers of the new landscape regulations. Outreach efforts will also help disseminate information about California Assembly Bill (AB) 1881 which made it CCWG Implementation Plans (As Adopted by City Council) July 1,2008 43 of 58 12-69 unlawful for homeowner associations that run common interest developments to restrict the use oflow water-using plants through covenants, conditions and restrictions (CC&Rs) if the plants meet maintenance standards. Although the new law has been enacted, residents continue to face challenges in obtaining approval from HOAs for the installation of low water-use plant palettes and many HOAs remain unaware of the new legislation. Associations will be informed about A.B1881 and ""ill also be encouraged to participate in and promote the City's water-saving prograrp.s to their residents. PERFORlVIANCE METRICS The program performance for all four components - NatureScape, Residential & Business Turf Conversion, Municipal Facilities Turf Conversion and Landscape Regulations Update - will be measured by a suite of metrics. The NatureScape and Residential &,Business Turf Conversion components will be assessed based on the number of participants, square footage of landscaping certified/converted and the resulting estimated water savings. The Municipal Turf Conversion component will also be evaluated based on the square footage of landscaping converted and the estimated water savings. Actual water savings from program implementation may also be quantifiable through the assistance of the local water districts. The Landscape Regulations Update will be evaluated based on its incorporation of new water-conserving landscape design elements that comply with new state regulations, if approved and implemented by City COli.1'lcil. In relation to the City's current greenhouse gas (GHG) inventory protocol, emissions from water use (i.e. energy used to import, treat and dispose of water) are not directly quantified, rather the protocol only includes emissions from energy associated with locally pumping and treating water within municipal boundaries. However, City staff will be able to estimate the-;program's carbon reductions based on the California Energy Commission's k\Vh per gallon conversion factor currently in development. Likewise, staff is now working with the California Air Resources Board, rCLEr and the California Climate Action Registry to develop I).ew local government GHG emissions protocols which would integrate water use into emissions estimates. TIMELTh~ Component #1 (NatureScape), #2 (Residential & Business Turf Conversion) and #3's (Municipal Facilities Turf Conversion) implementation could be commenced within a few months after receiving Council approval and the necessary funding. . Finally,. the Landscape Regulations . Update (#4) could commence immediately, but would require evaluation of DVlR's model ordinance (released on January I, 2009) before development of a City-specific standard and . revisions to the Landscape Manual and the Water Conservation Plan Guidelines (estimated to take 6 months) could occur. In addition, Council action on a new landscape ordinance, if deemed necessary, would require public notice and public readings before formal adoption. The program's timeline is summarized below: CCWG Implementation Plans (As Adopted by City Council) July 1,2008 44 of 58 12-70 CCWG MEASURE #7: TURF LAWN CONVERSION Implementation Plan Timeline PROGRAM MILESTONES July July '09, Jon '09 . Present Council new Water . Secure financing for ConseIV31JOn Plan, Landscape programs Manual & possible ordinance I I I' I I I '08 Jar '09 July '09 I Jon '09 F eb '09 Mar '09 . Begin evaluation of .Initiare contractor bid . Hire & train staff OVVR Madel Landscape process for corrmunibj for NaOJreScape & Ordinance lawn conversions cDlTTT1unit{ lawn . COnTilence design conversion work on municipal turf program conversion projects BUDGET The annual program costs associated with the NatureScape and Residential & Business Turf Conversion components combined are $202,800. It is estimated that the Municipal Facilities Turf Conversion would cost $300,000 'annually, while the Landscape Regulations Update component is estimated to cost $156380. These cost estimates would cover all personnel, supplies and services. These program costs assume full funding of all seven CCWG measures and will leverage each measure's budget to partially cover administrative and performance tracking costs. vVb.ile components #1 and #2 would need funding indefInitely to maintain them, the Landscape Regulations Update component would orily continue until the ordinance was developed and possibly adopted (approximately throligh CY 2010). However, ,the State's proposed Model Water Conservation Ordinance includes a requirement for ongoing community water auditing generating a need for an extra Open Space Division staff person estimated at $202,350 annually, The Municipal Facilities Turf Conversion would continue orily until all selected sites had been re-Iandscaped with water-saving plants and efficient irrigation systems. Implementation costs would be partially offset by available water district incentives. In addition, municipal water cost savings would average approximately $7,900 annually for every acre of turf lawn area converted to water-wise landscaping. There are potentially' a variety of possible funding sources for Measure #7 including a carbon offset fee, franchise fee, local fee authority and a general obligation bond. The program's budget is outlined below: CCWG Implementation Plans (As Adopted by City Council) July 1; 2008 45 of 58 12-71 CCWG #7 - Outdoor Water Conservation Program - Budget City Staff $88,000 Interns $49,000 NatureScape, Residential & Susiness Marketing Turf Conversions" $20,000 Other Commodities $45,800 TOTAL $202,800 City Staff --- $50,000 Municipal Facilities Turf Other Commodities --..--- $250,000 Conversion TOTAL ---- $300,000 Landscape Regulations City Staff $156,380 $202,350 Update TOTAL $156,380 $202,350 TOTAL $156,380 $705,150 "Assumes cost sharing between CCWG Measures #3, 5 & 7 for staff time & program materials" CCWG Implementation Plans (As Adopted by City Council) July 1,2008 46 of 58 12-72 OVERALL PROGR~ ADMINISTRATION FINANCING OPTIONS To fund the program, staff has identified and analyzed a variety of fmancing options (summarized in Table 3) to support. the seven measUres and their budgets estimated at $1,479,380 in one-time costs' and $2,419,150 in annual costs, These budgets. include costs associated with staff time, materials and contractor services to ir1:iplement t1ie'pi:"()grams as well as capital improvement projects., Additional costs associated 'with providing up front capital for residents and businesses to install renewable and energy-efficiency improvements (Measure #5) is not included and would be dependent on the level of community program participation, but could easily reach $50,000,000 over 5-10 years (assumes 5,000 homeslbusinesses participating at $10,000 per property). If additional funds are not secured, there would be significant implications on the level of implementation possible for the seven measures (Table 4), As a result, staff is recommending that the City pursue a variety .of funding sources to meet both the long-term, ongoing program management costs as well as the short-term, large upfront capital improvement costs required to implement the seven measures. Sustainable, long-term funding could be secured through establishment of a "local fee authority" and/or increasing the City's energy franchise fee. A local fee authority has been granted in the past by the state legislature to enable local governments to fund environmental programs and services. For example, Chula Vista received fee authority under Assembly Bill 939 to fund municipal solid waste, recycling and household hazardous waste programs. To secure funding for the seven proposed climate-related programs, the City could engage state representatives to pursue legislation allowing fee authority for local greenhouse gas emissions reduction efforts. The City's, current energy franchise fee - paid by SDG&E (and passed through to the customer) for the nonexclusive right to install and maintain equipment on highways, streets or public rights of way - is 1.25% and 2% of citywide annual gross electricity and natural gas revenues, respectively. In 2002, the California Public Utilities Commission (CPUe) approved a SDG&E franchise fee increase for the City of San Diego of 3.53% (electricity revenues) in order to underground power lines in residential areas. Chula Vista could pursue cpue approval to increase the City's energy franchise fees to support its greenhouse gas reduction efforts. Because a local fee authority and franchise fees are based on 'each individual ratepayer's consumption level, both funding mechanisms also help promote energy conservation in the community by rewarding ratepayers who consume less energy with lower fee amounts, Both potential revenue sources would be used to reimburse the City for staff time and materials' costs associated with ongoing program implementation and reporting. Unlike a local fee authority or franchise fee, a public bond issued by the City and secured through increased sales tax, transient occupancy tax and/or property taxes could quickly provide large, upfront capital improvement funds required to implement some of the seven measures. The bonds could have two specific applications: (1) provide capital funds for energy efficiency and solar retrofits for residential and business facilities (Measure #5) and (2} pro'vide funds for public purpose climate-related programs such as municipal renewable energy installation, alternative fuel fleet improvements and turf conversion. Under application #1, participating property owners would elect to be part of a special assessment district and their increased property fees would be applied to the bond's debt service. Under application #2, all Chula Vista property owners would vote in a general election whether to authorize a municipal bond issuance CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 47 of 58 12-73 Table 3: Summa;y of financing options and their applicability to the CCWG measures Building Permit Fees The City's building permit fees could be increased to cover the additional costs associated with implementing a citywide, mandatory green building standard. Carbon Offset F.. A fee for developers and builders to "oflser' L'1eir carbon emissions if they are unable to meet citywide, green building standards. Franchise F~e The City's franchise fee with SDG&E for gross electricity and natural gas delivery could be increased (currently at 1.25% and 2% of citywide annual gross electricity and natural gas receipts, resDectively). Grants Grant funding could be solicited from local, state and federal agencies. Local ,=ee Authority A fee authority would enable the City to place a local surcharge on utility bills and would require state legislature aoproval. Because there is a nexus between permit fee revenues and city development levels, permit fees may not provide a consistent funding source. Therefore, it may be more useful as a supplement to another long-term funding source. 4, 5 These funds would be used to pay for on-the-ground energy efficiency, renewable energy and altemative fuel vehicle improvement projects. The fund could also be incorporated into the CEQA projeel review and mitigation process. 1,2,4,5,7 Currently, the City of San Diegc has a higher SDG&E franchise fee than Chula Vista (5.78% of electricity and 1.03% of natural gas revenues). All - Staff & Resources 1,5,7 - Public Improvements Grant funding is typically short-lived and project-specific (i.e. not for ongoing programs). Therefore, it may be more useful as a supplement to another long-term funding source. All Similar to how AB 939 created a fee authority for local governments to fund solid waste/recycling programs, the City could pursue local fee authority for greenhouse gas emissions reduction programs. The City would need to engage local state legislators to pursue the fee authority. All - Staff & Resources 1, 5, 7 - Public Improvements . A bond could have two pOSSible applications: (A) Pay for financing energy efficiency & renewable energy improvements on private properties and the . participating property owners would eleel to be part of a Assessment Districts: A public bond could be issued and secured through sDecial assessment district to payback the bond. 5 _ Staff & Private Improvements Increased sales tax, transient occupancy tax andlor (8) Through a general eleelion, all ChulaVista property General Obligation: property tax. owners could elect to issue a bond to fund public 1,5,7 - Staff &.public Improvements purpose climate change-related programs (such as municipal renewable energy and alternative fuel fleet improvements). Public Bond "Additional research is needed to ensure that City is in compliance with Proposition 218 and applicable ta, laws and assess themselves an additional fee to repay the debt service. The amortization schedule for either bond application is estimated to be between 10-15 years (solar energy systems are required by State legislation to have at least 25-year warranties). Staff is recommending that the fee assessment be structured to include solar energy system replacement costs adding extra value for program participants and ensuring an economically and environmentally sustainable future. Other potential funding sources for the seven climate-related measures include establishing a City-controlled carbon offset fund, increasing building permit fees and applying for public grants. As part of the City's CEQA environmental review process and new Green Building Standard (Measure #4), the City could create a fee system for developers and builders to "offset" CCWG Implementation Plans (As Adopted by City Council) July 1,2008 48 of 58 12-74 their carbon emission,s if they are unable to meet CEQA significance thresholds for a project's greenhouse gas emissions impacts or comply With the new citywide building standards. These funds would be used to subsidize.. on-the-ground energy efficiency, renewable energy and alternative fuel vehicle improvements at municipal facilities or Within existing building stock preferably targeting lower income families and service institutions. Increasing building permit fees would have a more limited application and be mainly used to cover the additional costs associated with administering a citywide, mandatory green building standard. It should be noted that both CEQA reviews and permit fees are directly linked to development levels and may not provide consistent, long-term funding. Finally, grant funds could be solicited from local, state and national sources, but the funds are typically short-lived and project-specific (i.e. not for ongoing programs). Therefore, staff recorrimends that a carbon offset fund, increased building permit fees and public grant funds be pursued as part of the measures' financing strategy, but should be used primarily to supplement other long-term funding sources such as a local fee authority or a franchise fee increase. Table 4: Implications on program implementation if no new funds are secured Partial - Only ICLEI participation Admin. Emissions Tracking & Reporting (General Fund) - No 3rd party verification - No future AB32 compliance 100% Clean Vehicle Partial - Delayed implementation (Vehicle Replacement Replacement Policy for City Fleet Fund) - No biodiesel use 100% Clean Vehicle Partial - No H21CE van project 2 Replacement Policy for City- Contracted Fleet Services (General Fund) - No H2CNG bus project 3 Business Energy Assessm.ents Full Expected - Funding only thru 12/11 (SDG&E) 4 Green Building Standard Full Expected - Funding only thru 12/11 (Permit Fees/ SDG&E) 5 Solar & Energy Efficiency None - Only solar PV code creation Conversion - No community solar program 6 Smart Growth Around Trolley Partial - Delayed implementation Stations (Various) : Limited NatureScape program 7 Outdoor Water Conservation Partial - Delayed regulations update (General Fund) - No community turf replacement - No municipal turf replacement CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 490f 58 12-75 IMPLEMENtATION COORDINATION, EMISSIONS TRACKING & REPORTING While various departments will be responsible for implementing the specific measures (see individual implementation plans for details on departmental roles and responsibilities), the Department of Conservation & Environmental Services \',111 coordinate overall measurement, evaluation and reporting of the seven climate protection measures and the resulting greenhouse gas emissions reductions. The primary tool for tracking the emissions reductions will continue to be an annual, citywide greenhouse gas emissions inventory with technical assistance provided by rCLEr and the California Climate Action Registry; Staff is currently working with rCLEr, the California Air Resources Board and the California Climate Action Registry to develop a more robust emissions protocol specifically for local governments. With the new protocol, staff will be able to more accurately track and report the impacts of the seven climate protection measures. The City will also begin to participate in the verification process under the California Climate Action Registry program, Verification is performed by an approved third-party contractor to insure that the emissions data is accurate, transparent and consistent with all reporting guidelines. Participation in the California Climate Action Registry will help the City measure and manage emissions from municipal operations and facilities, while preparing Chula Vista for potential new regulations under the California Global Warming Solutions ,Act (AB32). Registry p'articipation will aho enable Chula Vista to document carbon reductions for consideration under any future emissions tradiI.lg system. The annual cost for implementation coordination, emissions tracking and reporting is estimated to be $93,300. This cost assumes full funding for CCWO measures #3, 5 and 7 in order to partially cover these administrative and performance tracking costs.' The program's annual budget is outlined below: CCWG Admin - Coordination, Tracking & Reporting - Budget City Staff $64,000 Registry Memberships $4,900 Emissions Inventory Verification $10,000 Other Commodities $14,400 .' TOTAL $93,300 CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 50 of 58 12-76 APPENDIX A - Quantity of vehicles to be replaced each year with hybrid, alternative fuel or ultra low emissions substitutes (by vehicle class) Intermediate Sedan ~ 7 6 ~ 2 0 7 0 5 5 j "j Full Size Sedan 0 0 2 ~ 1 0 0 0 0 0 j Compact SUV " 0 ~ 3 0 1 4 3 2 j Large SUV 0 I 0 0 0 2 1 0 0 0 Intermediate Pickup 4 12 I ) 6 7 0 14 2 0 Truck Full Size Pickup Truck 0 I 5 11 14 8 9 5 ~ 2 j Full Size Crew Cab 0 0 0 2 0 1 2 ~ 1 Picku Truck j Intermediate Van 0 2 0 0 0 2 2 Cargo Van ~ 3 7 0 ~ 1 0 0 j j Full Size Passenger Van 0 0 I 0 "J 0 0 0 0 0 " - Walk-in Van I 0 0 I 1 1 (J 1 0 0 Survey Truck "I 0 " " I" " 0 0 I 0 I 0 I 0 I 1 0 0 0 I Full Size Utility Truck I 2 2 "I" 3 I" I 0 0 0 Large Utility Truck 0 0 ~ 0 I ~ I 0 I 0 1 0 0 j j Flatbed Truck 0 0 0 0 0 0 " 1 0 TOTAL 13 28 31 37 35 14 38 " 17 18 12 CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 51 of 58 12-77 APPENDIX B - Incremental cost difference (in dollars) each year for replaCing existing fleet vehicles with hybrid, alternative fuel or ultra low emissions substitutes (by vehicle class) Full Size Sedan 0 0 10,000 15,000 5,000 0 0 0 0 0 Compact SUV 7,000 21,000 21,000 0 7,000 7,000 28,000 21.000 14,000 Large SUV 0 7,000 0 0 0 14,000 7,000 0 0 0 Intermediate Pickup 28,000 84,000 35,000 42,000 49,000 0 98,000 7,000 14,000 0 Truck Full Size Pickup 0 7,000 35,000 77,000 98,000 56,000 63,000 35,000 21,000 14,000 Truck Full Size Crew Cab 0 7,000 0 0 14,000 0 7.000 14,000 11,000 I 7,000 Picku Truck Intermediate Van I 0 14,000 7,000 7,000 0 0 0 14.000 7,000 14,000 Cargo Van 1 21,000 7,000 21,000 49.000 0 7,000 21,000 7,000 0 0 Full Size Passenger I 0 0 7,000 0 14,000 0 0 0 0 0 Van Walk-in Van I 0 7,000 0 7,000 7,000 7,000 0 7,000 0 0 Survey Truck 0 0 O. 0 0 0 7,000 0 0 0 Full Size Utility I Truck 14,000 7,000 7,000 14,000 11,000 7,000 7,000 0 I 0 0 Large Utility Truck 0 0 21,000 0 21,000 0 0 7,000 I 0 0 1 I Flatbed Truck. 0 7,000 7,000 0 0 0 0 0 7,000 I 0 TOTAL I 85,000 182,000 1 201,000 247,000 222,000 98,000 252,000 119,000 1116,000 1 74,000 CCWG Implementation Plail.s (As Adopted by City Council) July I, 2008 52 of 58 12-78 APPENDIX C - Conservation-focused municipal code related to businesses Municipal Code 8.23 - 8.25: Solid Waste All conunercial and industrial establishments shall submit recycling tonnage documentation on an annual baSis to the city's conservation coordinator, due on or before January 31'st, for the . previous year. Annual reporting shall be on the form promulgated by the. city manager, and .conunence on the first anniversary of the date set forth in the mandatory recycling implementation schedule as established in this chapter as July 1,1993. Voluntary reporting prior to the required mandatory recycling is encouraged. COrd. 2992 S 1, 2005; Ord. 2740 S 3, 1998; Ord. 2492 S 1, 1992). CCWG Implementation Plans (As Adopted by City Council) July I, 2008 53 of 58 12-79 APPENDIX D - Table A from "Architecture 2030: Meeting the 2030 Challenge through Building Codes" Table A: 2030 Challenge Interim Code Equivalents CODEI STANDARD COMMERCIAL RESIDENTIAL ASH RAE 90.1-2004 30% below ASHRAE 189 (in progress) o , 'I,W: 2,~?~;.:~}h Calilornia Title 24 2005 15% . 20% below~: Oregon Energy Code ~~ 25% below 30~. below <:W'ashj~gtt?n ,E.~e,r.gy',COd~ ,', .'.~ A ... -".',:. 1 25%>'30~'below,U.' RESNEr HERS Index 65 or less LEED NC 2,21'};iomes ""'>~' , .' . ~ ., '.j " New etA Credit #1: 6 pts, ,,', '.: "':""HERSi"d' "-5 :~Q'nov3tiDn ~ EAA.~a4tt ,~'~;s~'~:',3: a:<~::~;,-"i",-';(,;; n ex:!,:~ New - EA Credit #1, 7 pts RenQ'IatiQn - EA Credit #~: 9pts LEEO 2009 (in progress) GBI "S;tandard '{i~,pr;;g~~s~)~I:, , ,PATH A. a.1:h:H50:,t~i ' ;.:/j~::;~:.:;;,. Eecc Option~~ (prescriptive path) EC -154 r-iB! 'OPtioi1:'~ (pf~scri~t~v.e. pa~,~J' .~\ ,ii ;", ': ":". .' , ~:.' ~ ';'~'i '-, . 'N~w .-Cor~ Pt1rt,~rman#.~; , w(~n~a~c~d ,me>~5u~e(::';' .~; ., . '. '" f' ." ^ 1'~1;~t:':r~~:)~;'}? NOT:': Table A above rspres.ents. a set ':If guidelines. Each anti!)' should assess its particular code and building energy i:onsumption pat".arns and adjust the code equi"alentsprovided in t."le table as appropriat3. Par example, tt:ose ~ntities wit, aggressive GHoJ and ene~ reduction 'Initiatives may want to increase the recommended percen;;ag.=t na-ouctions. Entities with detailed information on code performance compared to t"leir building steck are encouraged t:l adjust ti"le P""-fCentag~ rsduC"'Jons to meet the 2030 Challenge targ.sts. ~3 The City of Santa Barbara established meeting the 2030 Challenge target for single-family residential units at 20% below Titie 24 and for high-rise residential. at 15% below Title 24. :.. Based on p~liminary code analysis fortho3 Califomia Energy Commission by Charles Eiey of Architec1JJral Energy Corporation. 'l.~ Oregon DeparT.ment of Energy. ~Comparison of Oregon Energy Code 2005 & ASH?.AE Standard 90.1~2004". ,;,~ For ~idential buildings east of the Cascade Moun;;ains. use 25% below. For residential buildings west of the Cascades, use 30% bei~ :7 Gre~n Building Initiative. Proposed American National Standard 01.200SP. :.$ ,1~Jlian-::e b Save Ener.ID'. ::nerg)' Efficient Codes CvaHtion (EECCl. -The 30% Soiutjon~/~C-154. This option provides a method for modifying the pr~riptive path of the code to meet or excead t'":a 2030 Challenge 50% reduction targ9t H New 3uildings IMtitute, ,Advanced 8uildings Core Perfcrmance Guide with enhanced measures. This action provides a method for modifying the prescriptive path of the ~de iO meet or ~xceed the 2030 ChaJlen::e 50% reduction target CCWG Implementation Plans (As Adopted by City Council) July 1,2008 54 of 5 8 12-80 APPE:N"DIX E - Draft Carbon Reduction Checklist CARBON REDUCTION CHECKLIST '({ :!;;;-'..t;... ~ CTY t1F GlUlA V'S!A ~Ji~8)i!~~3j?:;'~~=t(J~~1 COMPANY NAME: COMPANY A.DD~ES$: CON7ACT: CITY: STATE: ZIP: PHON e: EMAJl.; r~~!~fN~~~1#.1ttq~::t;~~%~it~?g~t[i:{~;,;:~~ii~i1k~iT~::~B~~}~JP;~~kf~~1kJi?i8r~~~;:f#f!i2"1;~li#&~~;i~i1]~7!f#i4~~~Vi~~;;;U&~':"~4~i~%Wm PROJECT ADDRESS; PROJa::riYP= SOFTWARE '- Commertiat U Residential Retr"fit UR.B2M1S '1 P!.4.C~ Oth~ SQUARE ,~OTAGE: PAKr OF DEVELOPMENT1 CJMAT::: ZQN E: CJ c 7 (.ISlbsisq.ft.) 10 (.35 Ibs-ls.q.ft.) EHMlSlONS REDucnONTAR{;:!" (pounds of CO:}: Cool FI.oof /-CoatSw.::o CJ R.Ja in Attie 0 ,llb!:isq..f-..ofCO: .2Ibshq.ft.ai::O: R-49inAttic CJ ,I lbslsq. fo.. of CO.: .2 Ib~sq. ft. of CO, .30/.25Window U.~ctol"lSHGC CJ .2 Ibtlsq. ft. of CO, .J Ibslsq. fo.. of CO: .9AFUE Fuma~ 0 .rSlbsisq. ft.ofCO~ .2 Jbs./sq. ft. of CO, .91AFUi: Fumace CJ .18 lbshq. ft..ofCO: (, .25 lbs/sq. ft. of CO~ w 14SEERAC ~ .1 Ib:tisq. ft. of CO: 0 .llb~sq. fo_ of CO: W I S SE-~.AC 0 .jSllnisq.ft.ofCO~ 0 .25 Ibshq. ft. of CO, 16 ~EER..AC CJ .2 Jbshq.ft. of CO: 0 3Ibshq.ft.c:fCO: TOTAL Prescriptive CREDITS (Tod x sq.ft = laS OF CO!) (TOt<d x tc;.'ft ,:::. LaS OF CO"i ;g~~~~~E~~~~~rJ3~lW~%~,g;~ctFi%~7~l!ft*_&~~f~dki~~d;}Hi~'~;{_t%C~t;~~0'tfz'~~p;~~e~;';i~[frL$~~~R~;f~if&1lfLtj~if#&~~~ Spac: Heacin.~ (Soun:~ 1<5TUIr!;.! ) JbVl<STU) Spac~ Cooling (Source k5TUIif, .07 IbslkSTU) Wner H~n: (5ouri:~ kBTUJ$~.1 r lb-sIk5TU) TOTAL P.rionnaltce CREDITS (Total x sq.,ft.:;l laS OF C.O~) (Total Yo I~ It = LaS OF CO!) ~q~~t~~~~~~..2:~iI-~~~~itm;c;~_~~~Q_ri,g,~~Ejl~~~~~~~JtZ;2~;{!,~t;}~S:Lttft~~Yig,t{"~~~j1~$1~~1it~ Solar ?anel '(YY innallcd 0 1.200 IbsIKW 0 1.700 IbsJKW o ,J2 JbSJ$q.It.per-.J Sola, FattOl'" o 1.400Ibs/KW o 2.3IbsJsQ.ft. 50131'" Hot'MItei Hl!llltei. Sol.:r Factor- o ., Z Ibs/sq.ft. per' 1 Solar FactO(" o 1.4001WKW o 1.7Ibs1sq.ft. Sq.~ (!bs-.orC01) '==L3S OF CO~: TGrAL U~S OFCOl: 5q..Ft'(lb:ofCO:i) = LBS O,e,CO;: WindT~ne KW installed Geothermal Srstem Si::e $2.5011b :::. CCWG Implementation Plans (As Adopted by City Council) July 1,2008 55 of 58 12-81 APPENDIX F - Chula Vista Climate Zone Map ", ~-\" , ."\, ~" 'l. z. " \, } i , f 't. \ \ \ \ r ""'~, ."..-- _.~.- "::."%.....~_... h:~""',!:",'" ~ lfo?-f).~-"':., . '-"""-:--\rt _J \ ."---' ).0.: ~ '".,.. _~-# -t J.3.........-~ :,,~........- 'l ~ :ii:t~~.-.,-_.~\~g~/\ ./; I~' - ~___ o.~~ r ,.,.. z~ ;l'. . ~'f~f\II 4':;" ..:J.b"<Z'A ..;. ,"-. -- ~ f"""I r _.;:tJ . f---,"\""'-.'. _J' \._~.~ l!1:;j.W tn, ~.~~,,--~ ~ft \ ,W~..~ >::::;'1Ot 1" i{ ~7' ~".;;;€a: ~f~ ~ tlfl'~=, Cf-l..tAVN.\ CUmate Zones Map Cfty of C.'mla \'1s!a C':tnOii:~ ZCli!3rJ'Jn~' ~ --:_~- :: CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 56 of 58 12-82 APPENDIX G - Draft Existing Building Efficiency Retrofit Options Tier 1: Minimum Requirements I Cost Notes Insulation, Envelope Sealing/Duct Sealing/Duct Design, Ventilation (Attic Weatherization' $7,000 Fan, House Fan, Ceilinq Fans), Doors Attic Insulation I6J $99/sa ft $80 $0.99 per square foot ENERGY STAR Refriaerator (<550 kWh) $1,500 Low Flow Faucets/Showers $30 $10 faucet, $20 showerhead Dual/Low Flow Toilets $250 $250 per unit Proarammable Thermostat $50 Waterless Urinal $350 Variable Freauencv or Dual Soeed Pool Motor $250 Indoor CFL or LED Eauivalent I $40 I Outdoor CFL or LED Equivalent T $40 Total $9,590 $5,000 $700 $900 $5,000 $300 $300 $900 $5,000 Total $13,100 PV Solar Thermal ater Domestic Solar Water Heater $42,000 I $65,000 $6,500 Rebates & bulk discounts included 2kW system $5000 + Inverter and $8,000 Labor $121,500 Total 'Federal Weatherizatiori Assistance Program Based on 2500 sq foot residence, 2.5 bathrooms $2750 avg CCWG Implementation Plans (As Adopted by City Council) July 1, 2008 57 of 58 12-83 APPENDIX H - Existing municipal code requiring solar hot water pre- plumbing on all new residential buildings Municipal Code 20.04.030: Solar Water Heater Preplumbing All new residential units shall include plumbing specifically designed to allow the later installation of a system which utilizes solar energy as the primary means of heating domestic potable water. No building permit shall be issued unless the plumbing required pursuant to this section is indicated on the building plans. Preplumbing shall extend through the roof when the slope of the roof is less than four inches and 12 inches and when the roof covering is of clay or concrete tile. Preplumbing pipes for domestic solar hot water heating shall be insulated. This section shall apply only to those residential dwelling units for which a building permit was applied for after the effective date of the ordinance codified in this chapter. Exception: The provisions of this chapter can be modified or waived when it can be satisfactorily demonstrated to the building official that the solar preplumbing is impractical due to shading, huilding orientation, construction constraints or configuration of the parcel. COrd. 1973 ~ 1,1982). CCWG Implementation Plans (As Adopted by City Council) July 1,2008 58 of 58 12-84 RESOLUTION NO. 2009- , RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) ACCEPTING THE 6-MONTH PROGRESS REPORT ON CLIMATE PROTECTION MEASURES IMPLEMENTATION AND (2) DIRECTING STAFF TO RETURN WITHIN 180 DAYS WITH ANOTHER IMPLEMENTATION UPDATE WHEREAS, Chula Vista's greenhouse gas or "carbon" emissions have increased 35% between 1990 and 2005, while emissions on a per capita basis and from municipal operations have decreased by 17% and 18%, respectively; and WHEREAS, as a result, the City Council directed staff to convene a Climate Change Working Group (CCWG) to develop recommendations to reduce the community's greenhouse gas emissions; and WHEREAS, the CCWG - comprised of residential, business and community-group representatives - evaluated over 90 climate protection measures and chose seven measures to ultimately recommend to City Council; and WHEREAS, on April 1, 2008,. City Council adopted the CCWG's seven recommendations and directed staff to develop more detailed implementation plans that included input from a broader range of stakeholders, identified potential funding mechanisms and established timelines, budgets, and evaluation criteria; and WHEREAS, on July 10,2008, City Council formally approved the implementation plans for the measures and authorized staff to pursue additional funding sources to ensure their full and long-term implementation; and WHEREAS, the new measures focus on lowering energy and water consumption, installing renewable energy systems, promoting alternative fuel vehicle use and designing pedestrian and transit-friendly communities; and WHEREAS, the Climate Protection Measures Implementation Progress Report, on file in the Office of the City Clerk, outlines staff's progress in implementing the measures and pursuing. their Council-approved financing strategy; and WHEREAS, City staff has also strived to integrate the measures' implementation into existing City programs, policies and regulatory processes to avoid duplication of efforts and to increase cost-effectiveness; AND WHEREAS, generally, most measures are being partially implemented based on current available funding levels and are meeting the milestones outlined in their original implementation plans. J~\Attomcy\RESOLUTION'S\CONSERV ATlO1'l\Accept 6.manth progress N:pon: rc Climate Prtctn Msrs_02.!7-09.doc 12-85 Resolution No. 2009- Page 2 \VHEREAS, City staff will continue to aggressively pursue the funding strategy that was outlined in the Council-approved implementation plans and updated through this six-month progress report; and \VHEREAS, staff will formally return to City Council within at least 180 days to provide further clarity on the climate measures' overall implementation and status on their financing; and \VHEREAS, City departments will also be returning to City Council throughout the next six months to present specific ordinances and resolutions necessary for individual measures' implementation. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept the 6-month progress report on Climate Protection Measures Implementation. BE,IT FURTHER RESOLVED, that the City Council fthe City ofChula Vista does hereby direct staff to return within .180 days with another implementation update. Presented by Michael Meacham Director of Conservation and Environmental Services J:\Attomey\FlNAL RES0S\2009\03 03 09\Acc:epr 6-month progress report re Climate Prtctn Msn 02-17..o9,doc 1 2-86