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HomeMy WebLinkAbout2010/02/23 Item 10 CITY COUNCIL AGENDA STATEMENT ~\f?- CITY OF ~ (HULA VISTA FEBRUARY 23, 2010, Item~ ITEM TITLE: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) ACCEPTING THE 18-MONTH PROGRESS REPORT ON CLIMA TE PROTECTION MEASURES IMPLEMENTATION AND (2) DIRECTING STAFF TO RETURN WITHIN 180 DAYS WITH ANOTHER IMPLEMENTATION UPDATE DIR. OF CONSERVATION & ENVIR@!NT AL SERVICE~ DIRECTOR OF PUBLIC WORKstl_ ~ DEPUTY CITY MA~R/DI~F VELOPMENT SERVICES CITY MA.NAGER ASSISTANT CITY ANAGER ~ SUBMITTED BY: 4/5THS VOTE: YES D NO I X I SUMMARY The City Council adopted in July 2008 implementation plans for seven new climate protection measures to help reduce Chula Vista's greenhouse gas emissions and meet its City's emissions reduction commitment of 20% below 1990 levels. The new measures, which were vetted through over 25 public forums and meetings, 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 financing strategy. Most measures are being implemented through existing departmental budgets or through external funding sources which staff has secured over the last 18-months. Although the initial milestones outlined in their original implementation plans are generally being met, the CitY still lacks a long-term funding source to support the measurcs' full and sustained implementation. In addition to implementing the seven climate protection measures, the City of Chula Vista continued to serve as a regional and statewide climate action leader over the past 6 months by successfully reporting its greenhouse gas emissions through the California Climate Action Registry, initiating a climate adaptation planning process, and working with the San Diego Foundation to form a new Regional Climate Change Collaborative. 10-1 FEBRUARY 23, 2010, Item~ Page 2 of 6 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 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/COM1\HSSION RECOMMENDATION Staff presented the l8-month progress report on the climate protection measures' implementation to the Resource Conservation Commission (RCC) on February 8, 2010. The RCC unanimously supported City Council accepting the l8-month progress report and also supported a City-administered bond for voluntary participants in the Home Upgrade, Carbon Downgrade program which includes some level of public benefit project support. DISCUSSION In 2007, City Council directed staff to convene a Climate Change Working Group (CCWG) to help develop recommendations to reduce Chula Vista's greenhouse gas or "carbon" emissions and meet the City's emissions reduction commitment of 20% below 1990 levels. 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 July 10, 2008, City Council formally approved implementation plans for the seven new measures and authori'zed staff to implement the plans and pursue additional, long-term funding sources. The seven new measures plus the City's original Carbon Dioxide Reduction Plan constitute Chula Vista's comprehensive Climate Action Plan. 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 continues partial implementation of most measures based on existing funding levels and has secured some additional external funds to launch new program components and to invest in new capital improvement projects. While these additional funds will allow broader implementation of the seven climate protection measures, funding levels are still a limiting factor to the measures' full implementation. Therefore, staff continues to pursue the Council-approved financing strategy outlined in the original plans. Below is a summary of the strategy's major financing options and their status: Grants Through the federal Energy Efficiency & Conservation Block Grant (EECBG) program, the City has received $1,974,300 to reduce energy consumption and stimulate the local economy. The funding will allow the City to move forward with a number of projects that advance the City's Climate Action Plan by 10-2 FEBRUARY 23, 2010, ItemR Page 3 of6 installing a new biodiesel fuel tank at the Public Works Corp Yard and converting 128 diesel-fueled fleet vehicles to the alternative fuel source (Measure #l-City Fleet Clean Vehicle Replacements), expanding on-site municipal solar energy systems (Measure #5-Energy Efficiency & Renewable Energy Conversions), and by providing direct incentives and loans to homeowners interested in energy (Measure #5) and water efficiency (Measure #7-Turf Removal & Landscape Water Efficiency) retrofits. To further support community retrofits, the City of Chula Vista collaborated with regional and statewide public agencies to submit multiple State Energy Program grant applications which would provide additional property owner education and incentives for energy and water efficiency upgrades. The State Energy Program is expected to announce the successful grant recipients in March 2010. The City of Chula Vista has been selected for funding by CalFlRE's "Innovative Urban Greening" program for a $53,000 grant award. The grant funds will allow the City to distribute free sustainable landscaping kits throughout the community as part of its NatureScape outreach program to promote water-efficient, nature- friendly landscaping (Measure #7). CalFIRE hopes to release the funding, which is presently unavailable due to the State's budget difficulties, in spring 2010. Staff will also continue to pursue additional state, federal, and private grant opportunitics at the local and regional level as they become available. Finally, the City has applied for a grant through Otay Water District's "Cash for WaterSmart Plants Program" to replace existing turf on the East H Street median (between Otay Lakes Road and Rutgers Avenue) with low water-use plants. If awarded, the new landscaping will be installed by Public Works Operations and help reduce municipal monthly utility costs and further reduce the City's GHG generation levels by reducing the energy consumption inherent in transporting and treating water. SDG&E Partnership The City has received over $4 million (3-year total) through San Diego Gas & Electric's Local Government Partnership program as part of their 2010-2012 Energy Efficiency Program Portfolio. Local Government Partnerships are designed to empower cities to develop energy efficiency programs and services at their facilities and within the community. The SDG&E Partnership will provide support for staff time (salaries and benefits for 6 full-time and 7 part-time staff members) and program costs for Measures #3 (Business Evaluations), #4 (Green Building Standard), and #5 through December 2012. Energy Franchise Fee Staff has been negotiating with San Diego Gas & Electric over Chula Vista's energy franchise fee which is a 1.25% and 2.00% surcharge on citywide electricity and natural gas sales, respectively. Under the iinancial strategy, the City would increase the franchise fee to fund carbon-saving improvement projects in the community and at municipal facilities, but the new rate would still be under or comparable to other local jurisdiction's energy franchise fees. At this point, 10-3 FEBRUARY 23, 2010, Item /0 Page 4 of6 SDG&E has been reluctant to support a franchise fee increase for climate protection purposes and continues to discuss alternate funding options with City staff. Local Fee Authority A Local Fee Authority, which would be created through new State legislation, would enable jurisdictions to place a local surcharge on utility bills (such as energy, water, or sewer) to fund local carbon reduction programs and services. Staff has helped to draft bill language for review and consideration by local and statewide elected officials. Staff has also shared the draft language with other California cities and counties to broaden support and to encourage legislative action. Similar to franchise fees, the Local Fee Authority would create a new, secure long-term revenue source for the implementation of all seven climate protection measures. Building Permit Fees The additional building permit review and inspection time associated with implementing a Green Building Standard (Measure #4) will be funded through revised development fee schedules. The new fee, part of the City's broader Master Fee Study, will be finalized and presented to City Council for consideration in spring 2010. Bonds The Council-approved financial strategy outlined the use of municipal bonds to support measures implementation. A municipal bond would be utilized to finance two carbon-saving project types - public purpose projects (such as municipal renewable energy installations) and community retrofit projects (such as energy and water efficiency upgrades in homes and businesses). Regardless of project type, the municipal bond's debt service would be offset by the resulting energy cost savings and repaid by beneficiaries of those savings. Over the last 6 months, staff has worked to secure allocations for two Internal Revenue Service tax credit bond programs, Certified Renewable Energy Bonds (CREBs) and Qualified Energy Conservation Bonds (QECBs), which offer low interest financing to local governments for carbon-reducing projects. Staff plans to finalize a CREB/QECB bond package for final City Council consideration by June 2010. To provide additional financial support for AB 811 community retrofit projects, the City Council recently authorized Chula Vista to join the CaliforniaFIRST Program which allows property owners to voluntarilv finance renewable energy, energy efficiency, and water efficiency improvements on their property. Because it is a statewide program, participating property owners may be able to access more competitive borrowing r<ltes for their loans which have 10-20 year terms (based on useful life of efficiency improvements) and transfer with property ownership changes. The CaliforniaFIRST Program sponsor, California Statewide Communities Development Authority, handles all bond administration, issuance, and repayment associated with the property owner financing. 10-4 FEBRUARY 23, 2010, Item (0 Page 5 of6 The Council also authorized staff to pursue local bonds to fund the community retrofit program proposed by the Climate Change Working Group and approved by City Council in July 2008 as Measure 5 (Home Upgrade, Carbon Downgrade program). The bonds would complement the CaliforniaFIRST program and provide the City with more flexibility by including additional energy and water saving appliances not included in the CaliforniaFIRST/AB8ll structure. The bonds also address the City Council and Climate Change Working Group's objectives for dcveloping local, long-term capacity to create consumer advantages (such as aggregating participants to reduce costs and ensuring maximum contractor warranties), support local purchases, and generate local quality jobs. The Council's Energy Subcommittee has recommcnded that the City- administered bond effort should be focused only on debt obligations for participants, with a limited contribution of up to 5% of total project valuation for a warranty/maintenance fund and public benefit projects. The Energy Subcommittee also recommended that staff not pursue any general obligation bond component which would support broad public benefit projects given the current economic climate. Staff bclieves that if the bonds are limited to voluntary participants, it is more like a voluntary assessment district or special taxing authority and will not require a general vote. Staff is working with the City Attorney's Office to verifY the legal impacts of a voluntary assessment district. If a general vote were still requ.ired, the ballot language would need to be submitted to the County by March 12, 2010 to meet the June 8th primary election target established by City Council as part of the Climate Action Plan. In addition to the seven climate protection measures, the City of Chula Vista continues to serve as a regional and statewide leader in climate action planning. In October, staff finalized and submitted the City's 2008 Greenhouse Gas (GHG) Emissions Inventory to the California Climate Action Registry, which is the State's premier voluntary greenhouse gas reporting system. The City of Chula Vista is the first local government in San Diego County to successfully report its GHG emissions through the California Climate Action Registry and earn its "Climate Action Leader" award. The City's Climate Change Working Group was also reconvened and expanded in October to help develop a Climate Change Adaptation Strategy. The group will work to assess the community's vulnerabilities to climate change impacts and develop strategies which "adapt" the community to the projected changes. By minimizing the risks associated with these climate impacts now, future costs can be avoided and/or minimized. The Climate Change Working Group will be presenting their recommendations to City Council for consideration in summer 2010. Finally, City of Chula Vista officials were invited to help launch a new San Diego Foundation initiative known as the San Diego Regional Climate Change Collaborative. The new forum will bring together San Diego County leaders and decision-makers to discuss and coordinate on climate action efforts improving regional effectiveness and competitiveness for state/federal funding and private investments. 10-5 FEBRUARY 23, 2010, Item~ Page 6 of6 Staff will 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 next 6 months to present specific projects 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)(1) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT Current partial implementation of the climate protection measures is being funded through existing departmental budgets and external grant and low interest loan funds, thus not creating a new cost to the General Fund. Through some projects' implementation, the City generates annual operational savings, particularly projects funded by grants, direct rebates, and no-interest loans. However, the greatest annual cost savings are generated by larger projects funded by external loans that require 5-7 years from implementation date to retire and generate their full General Fund savings potential. Per City Council's direction in July 2008, staff continues to pursue addition~l one-time and annual funding sources to support full, sustained implementation estimated at $2,120,000 and $1,990,000 respectively (revised amounts). Additionally, the local purchasing and hiring components of City solar and energy efficiency projects will generate several million dollars in local retail and business to business sales, and create local jobs over the next few months. The community retrofit program is projected to generate approximately $15,000,000 in local retail sales and wages per every" 1,000 homes or small businesses that implement their retrofit through the City's program. ONGOING FISCAL IMPACT 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 new grant, low/no- interest loan, or external fee revenue (i.e. no new General Fund impact). Furthermore, most measures will also help create annual General Fund savings in the medium-term through increased energy and water efficiency at municipal facilities and reduced fuel consumption by fleet vehicles. Staff will also monitor any potential impact to the City's Energy Franchise Fee and Utility Users Ta.x revenue as energy consumption is reduced through the community retrofit program (Measure #5). Staff anticipates that the Home Upgrade. Carbon Downgrade program should phase into 2,000 to 3,000 homes per year in its second year and it will take fifteen years to retrofit every residential property with a long term investment of approximately $750,000,000 in local sales and job creation. A TT ACHMENTS Attachment A - Climate Protection Measures l8-Month Progress Report (February 2010) Prepared by: Brendan Reed, Environmental Resource Manager, Conservation & Environmental Services 10-6 ~ \ ft... --.- . - --- :=: --~ - I ATTACHMENT A I (llY OF CHULA VISTA CLIMATE PROTECTION MEASURES Implementation Progress Report February 2010 SUMMARY On July 10,2008 the City Council adopted implementation plans for seven additional climate protection measures to reduce Chula Vista's greenhouse gas or "carbon" emissions. The new measures, which were recommended by the City's Climate Change Working Group - comprised of residents, businesses, and community representatives - were designed to assist the City in meeting its 2012 emissions reduction commitment of 20% below 1990 levels by requiring "clean" vehicle replacements for City and contracted fleet services, linking energy evaluations to annual business licenses, mandating green building standards for all new construction, facilitating turf lawn conversions to water-saving landscapes, focusing mixed- use, transit-oriented development near trolley stations, and implementing a community energy efficiency and solar retrofit program. As directed by City Council, staff has been implementing the approved measures over the last 18 months based on available funding. The following progress report outlines each measure's implemcntation status and upcoming milestones during this time period. Most measures are meeting the milestones outlined in their original implementation plims and the City has been very successful in securing additional financing to support the measures' short-term implementation. However, staff continues to try to secure funding sources for the measures' long-term, full implementation. The City has also initiated new climate action initiatives such as a climate adaptation planning process and California Climate Action Registry participation to complement the seven measures' implementation and broaden the etrectiveness of Chula Vista's climate protection program. OVERALL PROGRAM ADMINISTRATION Stakeholder Outreach Statr continues to educate residents, businesses, and community groups about the City's multi-department climate protection program. Program information has been distributed to the public through the municipal website, local newspaper advertisements, and community- wide events such as the weekly farmers markets (Third Avenue and Otay Ranch Tovm Center). The climate protection program's website was also redesigned to provide the community with up-to-date information and resources. At the national level, the City was recently featured in ICLEI-Local Governments for Sustainability's "Measuring Up" report highlighting Chula Vista's no-cost residential and business energy evaluation service as an effective tool for lowering energy use and related greenhouse gas emissions. During the past 6 months, the City of Chula Vista has also reconvened and expanded its Climate Change Working Group comprised of diverse stakeholder and community Climate NI~asures Implementation IS-Month Progress Report (February 2010) 10f16 10-7 representatives. The group will work to assess the community's vulnerabilities to climate change impacts and develop strategies which ~'adapt" the community to the projected changes. By minimizing the risks associated with these climate impacts now, future costs can be avoided and/or minimized. The strategies will be formalized in a Climate Change Adaptation Strategy which will be developed over the next 8 months with technical guidance and support from the San Diego Foundation and ICLEI-Local Governments for Sustainability: The Climate Change Working Group will be presenting their recommended strategies to City Council for consideration in summer 2010. The City ofChula Vista is the first local government in the region to begin assessing its resiliency to projected climate change impacts. Emissions Tracking & Reporting The City completed its 2008 greenhouse gas (GHG) emissions inventory to identify current emission sources and to guide policy decisions. The 2008 GHG Emissions Inventory, which utilized a new State-supported reporting protocol and newly-available emission coefficients, indicated that annual citywide GHG levels had increased by 29% compared to 1990. However, per capita and per housing unit levels in Chula Vista were approximately 25% and 17% below 1990 levels, respectively. GHG emissions from municipal sources (i.e. operations, facilities, and vehicle fleet) in 2008 were approximately 43% below 1990 levels. Although transportation levels and energy use in the community have generally increased in every inventory year since 1990, the stabilization of community-wide emissions and the decrease of municipal operation emissions (compared to results previously reported in the 2005 GHG Emissions Inventory) are mainly due to new emission coefficients. Chula Vista also recently joined the California Climate Action Registry, which is the State's premier voluntary greenhouse gas reporting system. Participation in the California Climate Action Registry complements the City's other climate protection efforts by documenting GHG emissions as it relates to Assembly Bill 32's (California Global Warming Solutions Act of 2006) statewide reduction targets and prepares the City for potential carbon trading opportunities in the future. The City of Chula Vista was the first local government in San Diego County to successfully report its GHG emissions through the California Climate Action Registry and receive their "Climate Action Leader" award. 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 The conversion of the City's 128 diesel-fueled vehicles (or 23% of the total fleet) to biodiesel is anticipated to be implemented by March 2010. Climate Measures Implementation IS-Month Progress Report (February 20 I 0) 2 of 16 10-8 Next Steps City Council approved a designlbuild agreement on February 23, 2010, with Western Pump Inc. for the design and construction of a 12,000 gallon biodiesel tank at the Public Works Corp Yard. This project is anticipated to be completed by March 2010. The new tank is fully funded through the City's federal Energy Efficiency & Conservation Block Grants (EECBG). MEASURE #2 - CLEAN VEHICLE REPLACEMENT FOR CITY-CONTRACTED 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 compressed natural gas (CNG) based on appropriateness for vehicle task, fueling infrastructure, petroleum displacement, overall cost, and environmental benefit. Status Chula Vista Transit The final two CNG transit buses arrived in November 2009 replacing two 1995 diesel transit buses. As a result, the transit fleet is now comprised of 100% alternative fuel vehicles. 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 Allied Waste Services (A WS) re-instituted the use of biodiesel for over 50 diesel-fueled vehicles in its Chula Vista fleet. Tow Trucks The contract with the tow companies to provide police-initiated tows expires June 30, 20 II. Language will be added to the Request for Proposals outlining the City's new policy for AFVlHybrid vehicles. Next Steps The City plans to work with utilities and regional agencies to further develop local infrastructure for alternative fuels helping to ensure that these fueling options are readily available for contractors and the public, whenever possible. MEASURE #3 - BUSINESS ENERGY EV ALUA nONS Overview The measure, as originally adopted by City Council, would encourage commercial and industrial businesses to participate in an energy and water evaluation of their premises Climate Measures Implementation IS-Month Progress Report (February 2010) 3 of 16 10-9 through a new municipal ordinance. The measure helps businesses identify energy efficiency and water conservation opportunities at their facilities and take advantage of rebate, incentive, and financing programs for improvements solely at the business's discretion. The evaluations, which are offered at no cost, apply to licensed businesses with a physical storefront and/or office location. Status In September 2009, City Council directed staff to create a new municipal ordinance that would require businesses to participate in the Free Resource & Energy Business Evaluation (FREBE) program. The ordinance, which was subsequently passed by City Council in November, states that businesses with store-fronts or offices need to participate in the program when a new business license is issued or once every 3-5 years for a renewed business license. These businesses are riot required to implement any of the identified energy or water efficiency opportunities and are not required to complete evaluations for facility areas beyond their operational control (ex. whole-building systems operated and maintained by a Property Manager/Landlord). To help ensure that the new requirement did not create an impediment to the participating business's normal operations, staff has worked to streamline program implementation. Businesses can easily schedule an evaluation by selecting a preferred date and time on their business license form, through an on-line appointment calendar, or by calling the City's bilingual staff in the Department of Conservation & Environmental Services. If businesses do not schedule an appointment within 60 days of receiving a license, staff will set a tentative appointment during the business's regular business hours which can be confirmed or rescheduled at the business's discretion. In December 2009, 993 existing businesses received notices stating that they would be re'j.,uired to participate in the FREBE program during calendar year 2010. As .of January 26' , over 140 businesses (or 14%) had already scheduled an on-site evaluation for the year. A recent survey of past participants highlighted that 78% of evaluated businesses implemented one of the City's recommendations and 45% of them realized savings on their monthly utility bills (13% reported that they had just recently implemented the recommendations, so it was too early to notice savings). Over 95% of respondents characterized the free evaluations as a positive experience and numerous businesses requested frequent consultation with City staff on energy and water management. Next Steps StafIwill continue to monitor and report to City Council the program's participation levels over the next year. In addition, the FREBE program will be linking to SDG&E's new portfolio of rebate and incentive programs including direct install services which provide free energy-saving maintenance and efficiency improvements to help lower business's monthly utility costs. Climate Measures Implementation 18-Month Progress Report (February 2010) 4 of 16 10-10 MEASURE #4 - GREEN BUILDING STANDARD Overview Measure #4 would mandate new and renovated residential and non-residential projects to incorporate the rcquirements of the Housing and Community Development's (HCD) version of the California Green Building Standards Code (CGBSC) and to be more energy efficient than the 2008 Building Energy Efficiency Standards (08 Standards) by a specific percentage. In addition, staff is working on a community/site design carbon savings option by which builders can use carbon savings realized from implementing sustainable community or site design measures toward meeting a portion of the required increased building energy efficiency standards. The other two components of Measure #4 are (1) implementing a green building awareness program and (2) updating existing and establishing new design and regulatory provisions that incorporate sustainable practices. Status Green Building Standards City Council adopted the Green Building Standards on October 6, 2009 and the Standards have been in effect since November 5, 2009. Permit applications submitted on or after November 5, 2009 are required to comply with the Standards. As of today, staff has not faced complications or received complaints with regards to compliance. Increascd Energv Efficiencv Standards On October 20, 2009, City Council placed an ordinance adopting increased building energy efficiency standards on first reading. Soon after, staff submitted an application to the California Energy Commission (CEC) requesting approval of the local amendments as required by State law. On December 16, 2009, the CEC approved and authorized enforcement of the standards' (Appendix A). As a result, Council approved the second reading and adopted the ordinance on January 26, 2010. The ordinance will take effect on February 26, 2010 and permit applications submitted on or after the date will have to comply with the new energy efficiency ordinance. Green Awareness Program The successful launch and implementation of the Green Building Standards and the Solar Pre-Plumbing/Pre- Wiring ordinances (see Measure #5) is due to a comprehensive staff training program and an extensive public outreach campaign. Staff developed program guides and handouts for distribution through the City's "Sustainability Center" website and at the "Sustainability Desk." In addition, staff is now developing guides and handouts for the increased building energy efficiency ordinance, so that they are available to the public before the ordinance takes effect. Any future ordinances, policies, and guidelines resulting from the ongoing implementation of Measure #4 will be made easily available on the City's website. Furthermore, staff will continue to receive additional training on the City's Green Building Standards and the recently-adopted 2008 Building Energy Efficiency Standards. Policv Guidelines and Regulatorv Amendments This component consists of the following three tasks related to updating existing and establishing new design and regulatory provisions to ensure incorporation of sustainable practices into new development projects: (1) Air Quality Improvement Plan (AQIP) Guidelines, (2) Zoning and Design Guidelines, and (3) current and proposed etTorts of the Climate Measures Implementation IS-Month Progress Report (February 2010) 5 of 16 10-11 Chula Vista Research Project (CVRP) through the National Energy Center for Sustainable Communities (NECSe) and San Diego State University (SDSU) regarding a Community Site Design Program. Air Quality Improvement Plan Guidelines- Staff has completed its work on updating the City's Air Quality Improvement Program (AQIP) Guidelines which were adopted by the City Council on December 8, 2009. The updated AQIP Guidelines will be used in preparing the next series of SPA Plans in eastern Chula Vista as part of the South Otay RanchlUniversity Villages planning efforts. As part of the Guidelines effort, staff also completed its work with Criterion Planners/Engineers, Inc. in October 2009 to update the INDEX computer model used to evaluate the design of SPA Plans through the required AQIP. New modeling baseline scores were developed through analysis of smart growth oriented projects built in the last 10+ years including Otay Ranch Villages 1, 5, 6, and 11. The new baseline requirements were incorporated into the AQIP Guidelines, and new developments will now need to meet or exceed those scores. In conjunction with the above-noted Increased Energy Efficiency Standards, a placeholder for a community/site design carbon savings option was included, under which builders can use carbon savings realized from implementing sustainable community or site design measures toward meeting a portion of the required increased building energy efficiency standards. These community/site design measures are to be considered as part of the SPA Plan and evaluated under the new AQIP Guidelines which also included placeholder provisions. Because the credit option approach is cutting edge and pioneering, staff has acknowledged that industry standards on calculating and quantifying specific credits were not yet defined, but would be developed pending the outcome of ongoing studies. Staff estimates that those efforts may take about one year depending upon the outcome of grants being sought by the NECSC which is discussed further in the applicable section below. Zoning and Design Guidelines- In addition to the AQIP Guidelines which target larger master planned projects, staff has been conducting research toward developing possible zoning standards and design guidelines that would promote sustainable practices and energy efficiency in smaller- scale site plans and projects. Staff has completed its initial research and has compiled a report on sustainable design concepts and potential updates to the City's Design Guidelines. The report is scheduled for presentation to the City Council in February 2010. Depending on City Council's direction, staff would prepare formal revisions to the City's Design Manual and return for Council action in summer 2010. CVRPINECSC Community Site Design Program- As noted in prior reports, the Chula Vista Research Project conducted by the National Energy Center for Sustainable Communities 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. Final reports on the research outcomes and related recommendations became available in January 2010, and will be presented at a forum Climate Measures Implementation IS-Month Progress Report (February 2010) 60f16 10-12 scheduled for February 9, .2010 in conjunction with the University of San Diego Burnham-Moores Center for Real Estate and CleanTECH San Diego. In addition to presenting the research findings, the forum will explore perspectives on green development from executives in local govemment, the real estate development industry, and energy technology manufacturers in San Diego County. A brief presentation to the City Council will also be given on February 9th Although the CVRP was not specifically designed to generate low-carbon site development standards and guidelines, the research results do provide a firm foundation upon which to frame follow-up research to produce them. As mentioned above, the "carbon credit" option approach included in the City's new Increased Energy Efficiency Standards and updated AQIP Guidelines needs additional research information on measuring and quantifying low-carbon site design standards. In the last progress report, staff noted that the NECSC and SDSU submitted an application in April 2009 (entitled "Model Site Design Guidelines, Measures & Standards for Energy Efficient/Low Carbon Community Development") under the CEe's Technology Innovations for Buildings and Communities-II grant program. In addition to continuing research on building and infrastructure technology modeling and community design option evaluations using the pending South Otay Ranch/University Villages projects, the grant request also included formulation of low-carbon site development standards and guidelines envisioned by Measure #4. Despite earlier positive indications in July 2009, staff was informed by the NECSC on December 29,2009 that they were not successful in securing the grant award. StatT will now need to identify other options for accomplishing the work which will extend the timeframe for devising carbon calculations and credits for site design options beyond September 20 I 0, as previously estimated. Next Steps As per Resolution 2009-248 adopted by City Council on October 20, 2009, staff will prepare and present for City Council consideration proposed local amendments to future versions of the California Energy Code requiring increased local energy efficiency standards, and the necessary future cost -effecti veness studies. With regard to the Policy and Regulatory Amendments component, staff will bring a report on sustainable design concepts and potential updates to standards and design guidelines to City Council in February 2010. Staff will also work to identify alternate funding and contracting options to evaluate and quantify low-carbon site development standards, in order to implement the energy efficiency credit option. Finally, more comprehensive community design program information, based on tindings from the CVPR, is anticipated to be presented to City Council by summer 20 I O. MEASURE #5 - SOLAR & ENERGY EFFICIENCY CONVERSION PROGRAM Overview In Chula Vista, there are an estimated 50,000 residential and commercial units that were built prior to statewide minimum energy efficiency standards. The "Solar & Energy Efficiency Conversion" program (now called the Home Upgrade, Carbon Downgrade Climate Measures Implementation I8-Month Progress Report (February 2010) 7 of 16 10-13 program) is intended to facilitate widespread installation of energy efficiency and renewable energy upgrades by helping the average resident and small business overcome common institutional barriers, upfront capital costs, complicated application processes, 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) Securing the best available bonding mechanisms and establishing voluntarv 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 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 plans to launch an initial component of the Home Upgrade, Carbon Downgrade program in spring 2010. The City will be using $900,000 of its federal Energy Efficiency & Conservation Block Grants (EECBG) to support initial home performance improvements. Specifically, the program will use EECBG funds to provide direct incentives and low-interest loans to lower the purchase price of identified energy efficiency, water conservation, and rene'wable energy retrofit opportunities. Finally, program funds will help establish a local green job education and training curriculum in association with community college and high school districts. This training program will also be linked to apprenticeship and career opportunities with support from the National Electrical Contractors Association and the International Brotherhood of Electrical Workers. The EECBG funds for the Home Upgrade, Carbon Downgrade program will be supplemented and leveraged with private, property-secured financing which program participants can also access to fund building retrofit projects. In January, the City Council authorized Chula Vista to join the CaliforniaFIRST Program which allows property owners to voluntarilv finance renewable energy, energy efficiency, and water efficiency improvements on their property and to repay the loan through the resulting utility cost savings. The statewide program will allow participating property owners to access more competitive borrowing rates for their loans which have 10-20 year terms (based on useful life of efficiency improvements) and transfer with property ownership changes. California FIRST, which is sponsored by the California Statewide Communities Development Authority, handles all bond administration, issuance, and repayment associated with the property owner financing. The CalifomiaFIRST program and EECBG funds provide critical funding to launch the Home Upgrade, Carbon Downgrade program and ultimately complement the City's Measure #5 program bond that City Council has previously targeted for June 2010. In regards to municipal retrofits, staff has initiated an additional round of energy efficiency and renewable energy improvement projects at Ciry-owned buildings and facilities. The City has selected a contractor to install over 400 kW of solar photovoltaic energy systems on II sites. Staff is now finalizing the project's financing and regulatory approvals before Climate Measures Implementation 18-Month Ptogress Report (February 2010) 8 of 16 10-14 proceeding with installation. The "Municipal Solar Installations" project will help the City reach its goal of generating at least 20% of municipal energy demand with on-site renewable energy systems. Recently, the City also received funding approval (1% CEC loan) for retrofitting 4,600 streetlights with energy-saving induction lighting technologies. The City's 9,000 total streetlights account for approximately 36% of municipal electricity costs and represent one of the City's best opportunities to increase municipal energy efficiency and generate over $440,000 in potential annual savings based on current electricity rates. The "Induction Streetlight Retrofit" project is expected to begin in spring 2010. In all cases, the municipal energy efficiency and renewable energy retrofit projects' financing costs will be repaid through the resulting energy cost savings and produce long- term General Fund savings once loans are repaid (less than 1 0 years). Next Steps City staff will finalize the launch of the Home Upgrade, Carbon Downgrade program. The goal is to phase into approximately 2,000 energy efficiency retrofits per year and provide the opportunity to update all 50,000 Chula Vista homes built prior to 1980 by 2020 per the California Public Utilities Commission policy. The project would also provide similar program benefits for newer homes to install solar and targeted energy efficiency upgrades. The suite of municipal retrofit projects will be implemented as financing becomes available over the next 6 months. MEASURE #6 - SMART GROWTH AROUND TROLLEY ST A nONS Overview The Measure #6's implementation plan consists of four components whose status is presented in the following section. The combined intent of these efforts is to accomplish the remaining planning groundwork necessary to support realization of the "Smart Growth" development densities and intensities envisioned in both the General Plan and the Urban Core Specific Plan (UCSP) for the areas surrounding the ESt., I-I St., and Palomar St. trolley stations. Status Urban Core Specific Plan Implementation This component's remaining work entails completion of a coordinated site development program for the area surrounding the E St. trolley station. In August 2009, City and Redevelopment Agency staffpartnered with the local San Diego Chapter of the Urban Land Institute (ULl) to conduct a ULl Technical Advisory Panel (TAP) program for the site. The TAP's focus is to assist the City/Agency in identifying a set of feasible site development parameters considering current market realities. The TAP was held over two working sessions on September 23 and October 8, 2009. The ULl submitted their draft TAP Report for City staffreview at the end of December. Staff has completed their review and provided comments, and the final ULl report should be available in March 2010. H Street Corridor Studv This implementation plan component consists of three initiatives: (I) the Urban Land Institute program, (2) potential General Plan and/or UCSP amendments, and (3) completion of a 3-D visual simulation model with SANDAG of a redeveloped corridor. Funding and Climate Measures Implementation IS-Month Progress Report (February 20 I 0) 9 of 16 10-15 pursuit of an Urban Land Institute (ULl) Advisory Services Program for the corridor remains on hold per Council/CVRC direction in October 2008. Subsequent to completing work on the E St. Transit Focus Area, staff will return with a revised proposal for accomplishing the H Street Corridor Study subject to future funding availability. A 3-D visual simulation of the corridor was completed in June 2009 by SANDAG and is available for viewing on the SANDAG website. Southwest Specific Plane s) Staff has completed the SANDAG grant contract and City Council approved acceptance of the $400,000 grant on January 12, 2010. The grant will fund preparation of the Palomar Gateway Specific Plan and Environmental Impact Report. Staff held its first Specific Plan discussion with the Southwest Working Group on January 20th. Preparation of the Specific Plan and Environmental Impact Report will occur over the next 12-18 months, and should be completed by spring 2012. Other Related Regional Efforts This component consists of two initiatives: (1) the 1-5 Corridor Study with SANDAG and CalTrans and (2) funding to accomplish grade separation of the trolley line at E and H Streets. SANDAG and their consultant initiated work on the 1-5 Corridor Study in April 2009, and the study should be completed by December 2010. Design alternatives have been narrowed to three, and staff is currently reviewing the outcomes of related t~affic models. Regarding trolley grade separation funding, staff will continue to work with SANDAG and others to identify and seek grant funding, including participation in ongoing regional grant programs. Next Steps Staff will work with the ULl to publish and present the TAP Study outcomes for the E St. TFA in March 2010. After completing work on the ESt. Transit Focus Area Study, staff will develop a work program for commencing with the H St. Corridor Study. For the Palomar Street trolley station area, staff will prepare the Palomar Gateway Specific Plan and Environmental Impact Report over the next 12 - 18 months. Staff will 'also continue to participate .with SANDAG to complete the 1-5 Corridor Study and provide periodic briefings and public outreach meetings as various project milestones are reached. Finally, staff will continue to actively seek additional funding for the E and H Street trolley grade separation projects. 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 turf lawn areas with "xeriscape" or "WaterSmart" landscaping. These landscape types are diverse, colorful, and attractive incorporating low maintenance and water-wise design features. Specifically, the program's components include (I) 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 Climate !vleasures Implementation IS-Month Progress Report (February 2010) 100fl6 10-16 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, when 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 on-site assessments for property owners and established approximately 220 NatureScape yards through the program's current limited funding source. On Dec 8 2009, the City Council approved a new Chula Vista Landscape Water Conservation ordinance, Chapter 20.12 of the Municipal Code. The ordinance, which was drafted by the Development Services Department in collaboration with Otay Water District and Sweetwater Authority, outlines new water-conserving landscape design criteria which will typically apply to new and renovated landscaped areas over 2,500 ft2 throughout the City. Although the new ordinance sets a "Maximum Applied Water Allowance" for these landscaped areas, it also provides t1exibility for how landscape designers and property- owners meet the new requirements. The ordinance also promotes the use of recycled and gray water for irrigation purposes 'and the reduction of excessive turf areas. The new ordinance wcnt into effect on January I, 2010. To further promote outdoor water use efficiency and turf conversions in the community, the City of Chula Vista joined the CaliforniaFIRST program which provides property-assessed financing for building performance improvements (see Measure #5 for more details). The program's eligible improvement list includes numerous measures focused on outdoor water efficiency. Next Steps City staff will continue, as funding permits, to enroll property owners in the Chula Vista NatureScape program and certify their yards and gardens through the National Wildlife Federation. Additionally, outdoor water use efficiency and turf conversions will be incorporated into the launch of the Home Upgrade. Carbon Downgrade program in spring 2010. IMPLEMENT AnON FINANCING Because staff has already secured almost $670,000 in one-time funds for initial implementation, the new measures' full implementation costs (revised amount) are now estimated at $2,120,000 and $1,990,000 in one-time and annual costs, respectively (Table I). In the Council-approved implementation plans, staff outlined various financing options to support full implementation of the new climate protection measures. Over the past 12 months, staff has pursued these options as highlighted below: Climate Measures Implementation IS-Month Progress Report (February 2010) 110f16 10-17 Table 1: Revised implementation cost estimates for the Council-approved climate measures Admin. Emissions Tracking & Reporting Track progress in reducing carbon emissions through ICLEI and California Climate Action Registry program participation $95,000 100% 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 $0 $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 $325,000 5 Solar & Energy Efficiency Conversion* Provide a cost-effectve, streamlined mechanism for property owners to implement solar and energy efficiency upgrades and create a municipal code requiring pre-wiring for solar electric systems ~~~ jf,:m:Jii.w;;o~~ "$235'000'. ~~liif~1UI~ .{;";f:m;,\~~ ~~~ :i~.~h~~a: ~"?;.'$15:0bO.j '. ~.u~= " ~".~' :s: 't~?;:~ $0 $650,000 4 Green Building Standard Through a building code revision, require new and renovated buildings to increase their energy efficiency and meet statewide green building standards $0 $350,000 7 Outdoor Water Conservation*"* :rovi~e a cost effe~tive, streamlin:d mecha.nis~ for ~~~ Installing water saving plants at pnvate/publlc sites and',,$160,OOO? $1,500,000 create new municipal landscape regulations :~iiliW~~ $620,000 6 Smart Growth Around Trolley Implement the 'smart growth' design principles outlined Stations"" in municipal planning documents $410,000 TOTA jj: $2,120,000 ~ " In addition to annual costs presented, implementation of measure #5 would require issuance of a public bond, paid back by the property-owners receiving the services, to cover upfront capital costs for solar and energy efficiency upgrades $1,990,000 "" The City has already secured approximately $2 million for related regional smart growth efforts such as the 1-5 Corridor Study """ One-time costs for measure #7 include $1,500,000 for Municipal Facilities Turf Conversion CIP ^ The City has funded some one-time costs through grants/other external sources and by redirecting existing staff time to implement measures. 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 California Public Utilities Commission-sponsored "Public Goods Charge", which is a monthly utility bill surcharge on energy consumed by every customer in SDG&E's territory. The City has received over $4 million (3-year total) through San Diego Gas & Electric's Local Government Partnership program as part of their 2010-2012 Energy Efficiency Program Portfolio. Local Government Partnerships are designed to empower cities to develop energy efficiency programs and services at their facilities and within the community. The SDG&E Partnership will provide support for staff time (salaries and benefits for 6 full-time and 7 part-time staff members) and program costs for Measures #3 (Business Evaluations), #4 (Green Building Standard), and #5 through December 2012. Energy Franchise Fees Climate Measures Implementation IS-Month Progress Report (February 2010) 120fl6 10-18 Currently, the City collects a franchise fee of 1.25% and 2.00% on citywide electricity and natural gas sales, respectively, through San Diego Gas & Electric regardless of energy provider. Staff has been negotiating with San Diego Gas & Electric to increase the franchise fee to fund carbon-saving improvement projects in the community and at municipal facilities. For example, an increase of I % in both electricity (adjusted rate = 2.25%) and natural gas (adjusted rate = 3.00%) fees would generate approximately $2.2 mill ion in additional revenue and meet 100% of the ongoing funding needs for all climate protection measures implementation. Any new rate would still be under or comparable to other local jurisdiction's energy franchise fees. At this point, SDG&E has been reluctant to support a franchise fee increase for climate protection purposes and continues to discuss alternate funding options with City staff. 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 the development and implementation of municipal solid waste, recycling and household hazardous waste programs to meet state-mandated landfill diversion goals and local reporting requirements. A new carbon-focused Local Fee Authority would enable jurisdictions to place a local surcharge on utility bills (such as energy, water, or sewer) to fund local carbon reduction programs and services. Since the last progress report, staff has helped to draft potential bill language for review and consideration by local and statewide elected officials. Staff has also shared the draft language with other California cities and counties to broaden support and to encourage legislative action. Similar to franchise fees, the Local Fee Authority would 'create a new, long-term revenue source for the implementation of all seven climate protection measures. 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. The Finance Department is currently finalizing a Master Fee Study assessing the revenue needed 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. Staff anticipates presenting the Master Fee Study's results to City Council in spring 2010 for review and consideration. Bonds The Council-approved financial strategy outlined the use of municipal bonds to support measures implementation. A municipal bond would be utilized to finance two carbon- saving project types - public purpose projects (such as municipal renewable energy installations) and community retrofit projects (such as energy and water efficiency upgrades in homes and businesses). Regardless of project type, the municipal bond's debt service would be offset by the resulting energy cost savings and repaid by beneficiaries of those savings. Over the last 6 months, staff has worked to securc allocations for two Internal Revenue Service tmc credit bond programs, Certified Renewable Energy Bonds (CREBs) and Qualified Energy Conservation Bonds (QECBs), which offer low interest financing to Climate Measures Implementation I 8-Month Progress Report (February 20 (0) 13 of16 10-19 local governments for carbon-reducing projects. Staff plans to finalize a CREB/QECB bond package for final City Council consideration by June 2010. To provide additional financial support for community retrofit projects, the City Council recently authorized Chula Vista to join the CaliforniaFIRST Program which allows property owners to voluntarilv finance renewable energy, energy efficiency, and water efficiency improvements on their property. Because it is a statewide program, participating property owners may be able to access more competitive borrowing rates for their loans which have 10-20 year terms (based on useful life of effiCiency improvements) and transfer with property ownership changes. The CaliforniaFIRST Program sponsor, California Statewide Communities Development Authority, handles all bond administration, issuance, and repayment associated with the property owner financing. Grants Through the federal Energy Efficiency & Conservation Block Grant (EECBG) program, the City has received $1,974,300 to reduce energy consumption and stimulate the local economy. The funding will allow the City to move forward with a number of projects that advance the City's Climate Action Plan by installing a new biodiesel fuel tank at the Public Works Corp Yard and converting 128 diesel-fueled fleet vehicles to the alternative fuel source (Measure #I-City Fleet Clean Vehicle Replacements), expanding on-site municipal solar energy systems (Measure #5-Energy Efficiency & Renewable Energy Conversions), and by providing direct incentives and loans to homeowners interested in en~rgy (Measure #5) and water efficiency (Measure #7-Turf Removal & Landscape Water Efficiency) retrofits. To further support community retrofits, the City of Chula Vista collaborated with regional and statewide public agencies to submit multiple State Energy Program grant applications which would provide additional property owner education and incentives for energy and water efficiency upgrades. The State Energy Program is expected to announce the successful grant recipients in March 20 I O. The City of Chula Vista has been selected for funding by CaIFIRE's "Innovative Urban Greening" program for a $53,000 grant award. The grant funds will allow the City to distribute free sustainable landscaping kits throughout the community as part of its NatureScape outreach program to promote water-efficient, nature-friendly landscaping (Measure #7). CalFIRE hopes to release the funding, which is presently unavailable due to the State's budget difficulties, in spring 2010. Finally, the City has applied for a grant through Otay Water District's "Cash for WaterSmart Plants Program" to replace existing turf on the East H Street median (between Otay Lakes Road and Rutgers Avenue) with low water-use plants. If awarded, the new landscaping will be installed by Public Works Operations and help reduce municipal monthly utility costs. The City has continued 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 (Measure #5). 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. Recently, the CEC approved a I % interest loan for the energy-efficient upgrade of the City's 4,600 residential streetlights. In February, the CEC also approved a 3% interest loan for installing solar photovoltaic systems at II municipal sites and improving the efficiency of lighting technologies at over 50 municipal sites. Climate Measures Implementation IS-Month Progress Report (February 2010) 14 of 16 10-20 City staff will continue to implement the Council-approved climate protection measures and to further the City's progress in creating tangible carbon reductions. One of the greatest challenges to facilitating further municipal and community-wide carbon reductions will be to establish a secure long-term funding source to ensure that the progress and momentum regained over the past two years continues until the City's environmental and economic sustainability goals are achieved. Climate Measures Implementation IS-Month Progress Report (February 2010) 15 of 16 10-21 APPENDIX A - California Energy Commission Resolution Accepting New Chula Vista Energy Efficiency Standards RESOLUTION NO: 09-1216-1 d STATE OF CALIFORNIA STATE ENERGY RESOURCES CONSERVATION AND DEVELOPMENT COMMISSION RESOLUTION: California Energy Commission approval of the City of Chula Vista's locally adopted energy standards for resIdential 'and commercial newly constructed buildings and additions and alterations to existing buildings, requiring greater energy efficiency Ihan the 2008 Building Energy Efficiency Standards WHEREAS, the City of Chula Vista has submitted an application to the Energy Commission for approyal of a local ordinance with energy efficiency requirements meeting or exceeding those required by the 2008 Buf/ding Energy Efficiency Standards; and WHEREAS, Public Resources Code Section 25402.1 (h)(2) and Title 24, Part 1, Section 10-106 establish a process for local governments to apply to the Energy Commission for approval to adopt new versions of Building Energy Efficiency Standards that require additional energy efficiency measures or set more stringent energy budgets; and WHEREAS, the City of Chula Vista submitted an application to the Energy Commission that meets all of the documentation requirements pursuant to Public Resources Code Section 25402.1 (h)(2) and Section 10-106; and WHEREAS, the City of Chula Vista has made an express written commitment to actively enforce compliance with tHe updated locally adopted energy standards and the 2008 Califomia Building Energy Efficiency Standards; and WHEREAS, the Energy Commission commends the City of Chula Vista for seeking to achieve additional demand reductions, energy savings and other benefits exceeding those of the 2008 California Building Energy Efficiency Standards;. THEREFORE BE IT RESOLVED, that on December 16. 2009 the Energy Commission approves the City of Chula Vista's locally adopted energy standards, and that these local standards may be enlorced by the City of Chula Vis fa. Dated: December 16, 2009 STATE ENERGY RESOURCES CONSERVATION AND DEVELOPMENT COMMISSION ~~ Karen Douglas, Chairman ~ Climate Measures Implementation 18-Month Progress Report (February 20 I 0) 160fl6 10-22 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (I) ACCEPTING THE 18-MONTH PROGRESS REPORT ON CLlMA TE PROTECTION MEASURES IMPLEMENTATION AND (2) DIRECTING STAFF TO RETURN WITHIN 180 DAYS WITH ANOTHER IMPLEMENTATION UPDATE WHEREAS, in 2007, City Council directed stalfto convene a Climate Change Working Group (CCWG) to help develop recommendations to reduce Chula Vista's greenhouse gas or "carbon" emissions and meet the City's emissions reduction commitment of 20% below 1990 levels; 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 July 10,2008, City Council formally approved implementation plans for the seven new measures and authorized staff to implement the plans and pursue additional, long- term funding sources; and WHEREAS, the seven new measures plus the City's original Carbon Dioxide Reduction Plan constitute Chula Vista's comprehensive Climate Action Plan; 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, staff continues partial implementation of most measures based on existing funding levels and has secured some additional external funds to launch new program components and to invest in new capital improvement projects; and WHEREAS, while these additional funds will allow broader implementation of the seven climate protection measures, funding levels are still a limiting factor to the measures' full implementation; and WHEREAS, staff continues to pursue the Council-approved fmancing strategy outlined in the original plans; and WHEREAS, statf will return to City Council within at least 180 days to provide further clarity on the climate measures' overall implementation and status on their financing. 10-23 Resolution No. 2010- Page 2 NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby: 1. Accept the 18-month Progress Report on Climate Protection Measures Implementation. 2. Direct staff to return within 180 days with another implementation update. Presented by Approved as to form by Michael Meacham Director of Conservation and Environmental Services / 10-24 ::::t.\.e\v\ \ 0 .;> 43//0 i J",' . t~ .~, :"1.,,;", ;' , Free Resource and Energy Business Evaluation (FREBE) Chula Vista, CA The FRESE program, initiated in 2007, encourages local businesses that are in the process of getting new or re- newed business licenses to take advantage of free on- site energy and water evaluations, A trained staff person provides the 30 minute review of the building's lighting, HVAC, building envelope, office equipment, appliances, operational procedures and energy bills, and makes rec- ommendations of ways to reduce energy and water con- sumption. Evaluations also include identification of available incentives, rebates and financing options to reduce upfront implementation costs. In-person program promotion, rather than doing outreach through mailers and phone calls, has led to a response rate of nearly 65 percent. More than 900 evaluations in two years have led to identify- ing over 5 million kWh in potential energy savings, equiv- alent to more than 3,400 tons C02e. The majority of savings to date resulted from lighting and food service pre- rinse spray valve retrofits (approximately 2,200 tons C02e). The City estimates that, of the potential savings identified, approximately 3.8 million kWh of efficiency improvements were implemented and realized. r--J~ -J> (7: (fVI / \: 0~ . 39 ,~{ f? ~ . . , ,.'."," ~~~~ CJ1Y OF CHULA VISTA "1:illra~C!fJ @lI!tID 1!lIi1ID1lil1JmI!l!J1ID lll3(llm !Dnl~ lID /l!ful (llm@mj] fillD:mj) ~ €liI!I~ ~1I11111~1fF.f1 ~~ ~r.ffll.tl"'I'!;b l'i'@mil c.r.mmffn;rIl lID~tD~ ~1IDc;m;> (~I ~,fi 11Ulllf:.llll 6IiID 1hElIDilBllv~'" ~@!!.b ~ &iT!1ilJ ~ , ~~~~ ~~ City of Chula Vista Leads Action on Climate Change The second largest city in San Diego County, Chula Vista is home to approximately 230,000 residents and is at the center of one of the richest economic and culturally diverse zones in the United States. As the city grows, Chula Vista remains committed to smart urban planning and sustainable development while maintaining its sense of community. Reducing Energy, Reducing GHG Emissions Since the early 1990s, Chula Vista has taken the lead on addressing climate change by implementing a number of programs and policies, with a strong focus on energy efficiency. In 2008 alone, Chula Vista, in cooperation with San Diego Gas & Electric@ (SDG&E@), invested over $1,000,000 in energy efficiency improvements and expanded renewable energy systems These improvements - including lighting retrofits, upgrades on pumps, chillers, and optimizers, a new boiler and solar water heater were installed throughout the city in facilities such as the Civic Center Library, Lama Verde Recreation Center and Parkway Recreation Center. ^- ~. -,.- -----... ,,,1 ,;M' ,,,,- ."",; ",., ,r , , ,'",/ " '''' , , , ,,, I, 'I, I/IJ ~I , i I , ,1' i!;,1 I , " , I' 'I" '1, .I'i ,il Ii 1, II ! i:"'lj II :,I'!I '1'1 I ,<Iii' I!" .'11 ~nJlltmn~, Th;; pm,,,m ",ocT by c"it",;, "tility "t;p~el'llI11~IP;~;i~V:Ii:(es, ,1 '1111 illl~1I I" L '.11:, ,,^,,~M ~M MI ^~li~JI~~ I~ p.,s a result of these efforts, Chula Vista has saved approximately 1.2 million kilowatt hours (kWh) and 50,000 therms of energy, This has translated to a reduction of over 1,100 metric tons of C02e, avoiding the GHG emissions equivalent to powering over 155 Chula Vista residences for one year. To further promote energy efficiency, Chula Vista and surrounding communities have formed a new Empower Partnership, The collaboration helps residents and local businesses take advantage of SDG&E rebates to lower both energy use and costs, So far, the Empower Partnership has distributed nearly 50,000 compact fluorescent bulbs to area residents and businesses, which has saved over 4,1 million kWh in energy. A Critical First Step: Taking Inventory Chula Vista's strategy against climate change includes taking inventory of its annual emissions by measuring, third.party verifying and publicly reporting its entire carbon footprint. In exchange for its participation in SDG&E energy efficiency programs, Chula Vista receives assistance in measuring its overall greenhouse gas (GHG) emissions profile through participation in the Cool Planet Project, an SDG&E and Climate Registry.sponsored program, Chula Vista's subsequent GHG reductions from its energy efficiency efforts will be reflected in its annual inventory of direct and indirect emissions, following The Climate Registry's Local Government Operations Protocol. Building a GHG inventory helps Chula Vista manage its carbon output and implement a robust Climate Action Plan, The City of Chula Vista remains committed to improving environmental health ~ rr?Ucin emissions while helping to create