REPORT TO THE CITY COUNCIL
Date: December 17, 2015
FROM: JENNIFER CLARK, Director
Development and Resource Management
THROUGH: DANIEL ZACK, Assistant Director
Development and Resource Management
By: JOSE R GONZALEZ, Energy Program Administrator
Sustainable Fresno Division, Development and Resource Management
SUBJECT
Title
Authorize the Director of the Development and Resource Management Department to sign the Master Service Agreement and Contract Work Authorization Agreement between the City of Fresno and Pacific Gas and Electric Company until December 31, 2017 and receive $5,694,000 in funding from the California Public Utilities Commission for energy efficiency programs.
Body
RECOMMENDATION
Staff recommends that the City Council authorize the Director of the Development and Resource Management Department to sign the Master Service Agreement (Agreement 1) and Contract Work Authorization Agreement (Agreement 2) between the City of Fresno and Pacific Gas and Electric Company (PG&E) until December 31, 2017 and receive $5,694,000 in funding from the California Public Utilities Commission for energy efficiency programs.
EXECUTIVE SUMMARY
The current Agreement with PG&E, which provides funding from the California Public Utilities Commission (CPUC) for the City of Fresno’s energy efficiency programs under the Local Government Partnership (LGP) Program expires on December 31, 2015. PG&E is proposing to implement a new Agreement effective January 1, 2016 through December 31, 2017, and provide $5,694,000 in funding to the City for calendar years 2016-2017 to continue implementation of its energy efficiency programs. This Agreement provides funding for the City’s administration of Energy Programs as well as for the City’s professional services agreements to provide Home Energy and Business Energy Tune-Up audit and related service needs. It is anticipated that the CPUC will complete its review of the 10 year rolling energy efficiency portfolios during the term of the 2016 - 2017 program cycle and thus move into ten year contracts effective 2018 through 2028.
BACKGROUND
On January 14, 2010, the City Council authorized the Director of the DARM to enter into a service provider agreement with PG&E to administer the LGP program within the City of Fresno using funding from the CPUC. The original Agreement between the City of Fresno and PG&E, provided $360,000 ($120,000 for each of three years) in funding to the City to provide administration of the LGP program, marketing, and coordination with other energy efficiency programs through the end of December 2012.
PG&E had been very impressed with the City of Fresno’s success in implementing energy efficiency programs on a regional scale (Fresno, Madera, Tulare, Kings, and Kern Counties) utilizing funding from the U.S. Department of Energy and the California Energy Commission. Therefore PG&E offered increased funding to the City to continue operation of the Home Energy Tune-up Program that provides no-cost, in-home energy surveys for homeowners in the (then) Fresno and Madera Counties. On June 28, 2012, City Council approved PG&E’s increased funding to the City of $575,000 via the Agreement through December 31, 2012.
During the last quarter of calendar year 2012, PG&E worked with Sustainable Fresno Division staff to develop a scope of work and budget to support the City’s energy efficiency programs on a regional basis to be funded as part of their new energy efficiency portfolio for submission to the CPUC in the 2013-2014 funding cycle. The expanded services developed for 2013-2014 included continuation and expansion of the Home Energy Tune-up Program to PG&E service territories in Madera, Fresno, Tulare, Kings, and Kern Counties, expanded commercial business energy assessment services, expansion of Property Assessed Clean Energy (PACE) financing availability, commercial property energy benchmarking services, and increased education and outreach to real estate professionals regarding building energy efficiency impacts on property valuation. The budget for these services was $5,600,000 for calendar years 2013 and 2014. On November 1, 2012, the City Council approved the extension of the Agreement with PG&E for $5,600,000 through December 31, 2014.
On October 16, 2014, the CPUC voted and approved the proposed decision Rulemaking (R) 13-11-005, providing instructions for utility companies to continue funding and implementation of energy efficiency programs into 2015. The CPUC desires to avoid stopping and starting programs as it prepares to move into a 10 year rolling energy efficiency portfolio. 2015 was then considered the third year of a three year energy efficiency portfolio for funding provided and deliverables required covering calendar years 2013, 2014 and 2015. 2015 was then also considered year zero of a 10 year rolling energy efficiency portfolio from 2016 through 2025. The CPUC intends to review portfolios for funding levels, efficiency, and deliverable results on a 10 year continuing rolling basis (with some adjustments), which can allow for longer term funding provided the programs show proper effectiveness/efficiencies. Given subsequent updates, calendar year 2017 is now considered year zero of the 10 year rolling portfolio.
On November 19, 2015, the City Council approved the extension of the Agreement with PG&E for $2,847,000 through December 31, 2015.
Although the CPUC has not completed their review of the 10 year rolling portfolios, PG&E is very pleased with our programs accomplishments and would like to re-contract with the City of Fresno to continue implementation of our successful LGP energy efficiency programs for calendar years 2016 and 2017.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, this item does not qualify as a “project” for the purposes of CEQA
LOCAL PREFERENCE
Local preference was not implemented because the Agreement does involve an expenditure of City funds on a construction or service contract.
FISCAL IMPACT
There are no negative impacts to the General Fund from this project. All costs associated with these agreements will be paid for with funding from Pacific Gas and Electric Company and the California Public Utilities Commission. The Agreement with PG&E is a reimbursement based program and this funding is available in December 31 2015.
Attachments:
PG&E Master Service Agreement (Draft)
PG&E Contract Work Authorization Agreement (Final)