LOCAL GOVERNMENT ENERGY OFFICE PRIMER

1. LOCAL GOVERNMENT ENERGY OFFICE PRIMER David Konkle Director, Energy Office Initiative dave.konkle@iclei.org www.icleiusa.org/energyoffice

2. Introducing ICLEI’s New Energy Office Initiative Make a smart investment in preparing for your community’s future Support climate protection and sustainability goals Establish a self-financing energy office Capitalize on economic recovery funding, increased grant support Utilize ICLEI’s new Energy Office training services for remote and in-person access to valuable information on establishing a successful energy office WWW.ICLEIUSA.ORG

3. Unique opportunity to establish a self-sustaining local energy office • Release of federal stimulus funds for energy programs • Increased emphasis on energy efficiency and renewable energy at federal, state and local levels of government • Climate change issues “heating up”, new legislation proposed WWW.ICLEIUSA.ORG

4. American Recovery and Reinvestment Act Where the dollars are going www.recovery.gov WWW.ICLEIUSA.ORG

5. $3.1B for the State Energy Program $3.2B for Energy Efficiency and Conservation Block Grants $5B for the Weatherization Assistance $300M for Alternative Fueled-Vehicles $9B for Green Schools Local Government Energy Related Stimulus Components WWW.ICLEIUSA.ORG

6. Energy Efficiency Block Grant Program Eligibility Applications due June 25th • Local Governments Eligible for Direct Formula Funding • City: Pop. ≥ 35,000 OR Top 10 in state • County: Pop. ≥ 200,000 OR Top 10 in state • Smaller Communities • Compete for State Funding • Compete for DOE Small Communities Funding ($56M) • Compete for DOE General Grants WWW.ICLEIUSA.ORG

7. DOE Objectives for Energy Stimulus Funds • Invest funds for economic stimulus effect now and to meet long-term energy goals • Create comprehensive energy strategies that benchmark current performance and set future goals • Develop programs and projects that will persist beyond grant period • Leverage funds with public and private sources • Coordinate at regional levels WWW.ICLEIUSA.ORG

8. ICLEI Members are Already on Track Vehicle Fleet Water/Sewer Waste Outdoor Lighting Buildings Electricity Natural Gas Diesel Usage Gasoline Usage Electricity Natural Gas Electricity Waste Employee Commute GHG Emissions (eCO2) • Commuter Survey GHG Emissions (eCO2) Greenhouse Gas Emissions Inventory WWW.ICLEIUSA.ORG

9. $ CLIMATE CHANGE FOSSIL FUEL SUPPLY ENERGY ISSUES $ NATIONAL SECURITY AIR QUALITY WWW.ICLEIUSA.ORG

10. Rising Energy Costs Stress LimitedMunicipal Budgets In the last three years: For city of 115,000 Electricity Cost up 20% = $ 660,000/yr Natural Gas Cost up 43% = $ 330,000/yr Vehicle Fuel Cost up 42% = $ 510,000/yr Total = $1,500,000/yr WWW.ICLEIUSA.ORG

11. Most Local Governments Establish an Energy Office for Economic Reasons • Rising energy costs are creating budget stress • Control energy costs (as much as possible) Reduce current energy use Reduce or control energy costs • Prepare for future energy shocks Increasing energy costs- price spikes Possible supply issues Broaden portfolio of energy sources WWW.ICLEIUSA.ORG

12. Why the Local Government is the Best Place to House an Energy Office • In house energy savings can pay for the cost of operating the Energy Office. WWW.ICLEIUSA.ORG

13. Ann Arbor Energy Office Since 1988 $7,000,000 in Energy Savings $2,000,000 in Grants and Rebates WWW.ICLEIUSA.ORG

14. Energy Coordinator - Annual Cost vs Savings WWW.ICLEIUSA.ORG

15. Energy Coordinator - Annual Cost vs Savings WWW.ICLEIUSA.ORG

16. Energy Coordinator - Annual Cost vs Savings WWW.ICLEIUSA.ORG

17. Energy Coordinator - Annual Cost vs Savings WWW.ICLEIUSA.ORG

18. Energy Coordinator - Annual Cost vs Savings WWW.ICLEIUSA.ORG

19. Energy Coordinator - Annual Cost vs Savings WWW.ICLEIUSA.ORG

20. Energy Coordinator - Annual Cost vs Savings WWW.ICLEIUSA.ORG

21. Energy Coordinator - Cumulative Cost vs Savings WWW.ICLEIUSA.ORG

22. Why the Local Government is the Best Place to House an Energy Office • In house energy savings can pay for the cost • Lead by example • Implement programs, policies and ordinances to move the community towards more sustainable energy use • Eligible for State and Federal grants to fund energy programs. WWW.ICLEIUSA.ORG

23. Energy Office – Roles and Responsibilities Coordinate and direct the overall energy program Many departments have a stake in energy use and cost: • Building Management • Public Services • Parks • Planning • Police/Fire • Fleets • Finance An Energy plan is a major component of all climate protection and sustainability plans WWW.ICLEIUSA.ORG

24. Energy Office – Roles and Responsibilities • Coordinate and direct the overall energy program, place one person in charge of leading the effort • Produce an inventory of all energy use throughout the organization: Energy Efficiency and Conservation Block Grant: Requires local governments to establish a baseline energy use and emissions WWW.ICLEIUSA.ORG

25. Municipal Government Energy Use Total Electric & Natural Gas Cost = $4,516,000 Water Treatment Other $927,000 (21%) Wastewater Treatment $300,000 (7%) $1,273,000 (28%) Parking Structures $222,000 (5%) City Hall $209,000 (5%) Street Lights Pools & Ice Rinks $1,390,000 (30%) $195,000 (4%) WWW.ICLEIUSA.ORG

26. Energy Office – Roles and Responsibilities • Coordinate and direct the overall energy program • Produce an inventory of all energy use • Assess the potential of energy improvements WWW.ICLEIUSA.ORG

27. EPA - Portfolio Manager • Establish baselines to set goals and measure progress • Identify under-performing buildings to target for energy efficiency improvements. WWW.ICLEIUSA.ORG

28. Energy Office – Roles and Responsibilities Coordinate and direct the overall energy program Produce an inventory of all energy use Assess the potential value of energy improvements Lead effort to draft an Energy Plan Energy Efficiency and Conservation Block Grant: Requires local governments to produce plan for energy savings WWW.ICLEIUSA.ORG

29. Energy Plan Requirements from DOE • Define goals and objectives for future energy use, • energy efficiency increase, • renewable energy increase • emissions reductions • Provide strategies and timeline to meet those goals • Implement plan for evaluation, monitoring and verification • Quantify outcomes of Energy Plan: • Jobs created and/or retained • Energy saved • Renewable energy capacity • GHG emissions reduced • Funds leveraged • New policies implemented WWW.ICLEIUSA.ORG

30. Energy Office – Roles and Responsibilities Coordinate and direct the overall energy program Produce an inventory of all energy use Assess the potential value of energy improvements Lead effort to draft an Energy Plan Secure resources to implement energy plan WWW.ICLEIUSA.ORG

31. New Energy Reduction Project Funded Seed Funding Revolving Energy Fund Energy Reduction Project Implemented Percentage or all of Savings Reinvested Energy Savings Results Monitored Energy Savings Identified ICLEI Resource Guide WWW.ICLEIUSA.ORG

32. Energy Office – Roles and Responsibilities Coordinate and direct the overall energy program Produce an inventory of all energy use Assess the potential value of energy improvement Lead effort to draft an Energy Plan Secure resources to implement energy plan Measure, track, evaluate, and communicate results Energy Efficiency and Conservation Block Grant: Requires local governments to track and report energy savings and emissions reductions WWW.ICLEIUSA.ORG

33. Energy Office – Roles and Responsibilities • Coordinate and direct the overall energy program • Produce an inventory of all energy use • Assess the potential value of energy improvements • Lead effort to draft an Energy Plan • Secure resources to implement energy plan • Measure, track, evaluate, and communicate results • Make program visible in community, obtain recognition for achievements, celebrate success WWW.ICLEIUSA.ORG

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36. A Local Government Energy OfficeAn excellent way to meet DOE stimulus goals DOE Stimulus Goals: • Invest funds for economic stimulus effect now and to meet long-term energy goals • Create comprehensive energy strategies that benchmark current performance and set goals • Develop programs and projects that will persist beyond grant period • Leverage funds with public and private sources • Coordinate at regional levels WWW.ICLEIUSA.ORG

37. A Local Government Energy OfficeAn excellent way to meet community goals Community Goals: • Control future energy costs • Utilize local energy sources • Reduce climate change emissions • Achieve sustainable community goals • Leverage local funds with public and private sources • Coordinate at regional, state and national levels WWW.ICLEIUSA.ORG

38. Additional Local Energy Program Funding State Energy Offices: • Funding increased by 70 times (from $44M to $3.1B) Other DOE Stimulus Energy Grants: • Additional $456 million in competitive grants for local energy programs And More ! for instance: TheMichigan Public Service Commission released an RFP on April 7 for an $8.5 million program to facilitate on-site renewable energy systems and energy efficiency upgrades for local government facilities. WWW.ICLEIUSA.ORG

39. Using Economic Recovery Funding for Energy Offices Up-front funding to establish and staff the energy office Additional Funding for: • Preparation of a local energy plan • Analysis of current energy use • Evaluation of energy saving opportunities • Implementation of energy saving and renewable energy programs WWW.ICLEIUSA.ORG

40. Formula Block Grant Recipients Timelines • Must submit application to DOE by June 25, 2009 to receive funding. • Within 120 days after the grant award, must submit an Energy Efficiency and Conservation Strategy which includes the goals and plan for how all funds from the grant will be spent. • All funds must be obligated within 18 months and expended within 36 months of award. WWW.ICLEIUSA.ORG

41. Introducing ICLEI USA'sLocal Government Energy Office Initiative David Konkle Energy Office Director dave.konkle@iclei.org www.icleiusa.org/energy

42. Remote Services ICLEI Energy Office Initiative ICLEI “Fee for Service Program” Introductory Webinar (free) Customized Webinar • Request a customized webinar that addresses your community’s unique needs and circumstances. • Price: Starting at $500 members; $700 nonmembers (to be determined based on the request) WWW.ICLEIUSA.ORG

43. Energy Office Seminar Series Subscription to Energy Office “Energy Bits” Series • Pre-recorded seminars (10-20 minutes each) released throughout 2009 • “Stimulus Special” • Subscribe to Energy Office Seminar Series by May 26 $400 members, $650 nonmembers • After May 26: $600 members, $850 nonmembers WWW.ICLEIUSA.ORG

44. Energy Office Seminar Series How an Energy Office can help meet EECBG requirements Including an Energy Office in your EECBG application Revolving loan fund primer How much does it cost? How much will it save? (Energy Office Economics 101) Energy Office Funding Strategies (Stimulus, Revolving Loan Funds, Grants) Energy Office staffing Regional energy offices – strategies for small communities Creating a Local Energy Plan Engaging Community Stakeholders Efficiency and Renewables And More… WWW.ICLEIUSA.ORG

45. In-person Services ICLEI Energy Office Initiative Customized In-Person Training • $2,750 members; $3,500 nonmembers Basic Group Training (regions working together) • $500 members; $750 nonmembers (per person) WWW.ICLEIUSA.ORG

46. Unique opportunity to establish a self-sustaining local energy office • Support climate protection and sustainability goals • Establish a self-financing energy office • Capitalize on economic recovery funding, increased grant support • Utilize ICLEI’s new Energy Office trainings for remote and in-person access to valuable information on establishing a successful energy office WWW.ICLEIUSA.ORG

47. www.icleiusa.org/energyoffice Energy-usa@iclei.org ICLEI USA Local Government Energy Office Initiative David Konkle Energy Office Director dave.konkle@iclei.org