CITY OF MINNEAPOLIS 2018 Energy and climate programming in from the utility franchise fee increase PECE Committee Meeting Luke Hollenkamp - City Coordinator, Division of Sustainability Patrick Hanlon - Health Department, Environmental Programs Matt Kazinka - Co-Chair, Energy Vision Advisory Committee March 26, 2018 1
Utility Franchise Fee Increase adopted (Dec 8, 2017) Increased electric and natural gas utility franchise fees by 0.5 percentage points in each customer class, effective early 2018 • Estimated additional revenue of $2.2M in 2018 and $2.8M in 2019 and beyond 2018 City Budget adopted (Dec 6, 2017) Ongoing General Fund appropriation of $989,000 in 2018 for projects to be allocated through the Clean Energy Partnership (CEP) 2
1+ year of engagement on program development • Early 2017: Energy Vision Advisory Committee’s (EVAC) Funding Work Group began meetings with CEP staff • Dec 2017: CEP’s city staff and aides explored new and enhanced programs aligned with EVAC recommendations • Jan 2018: CEP’s city staff began in-depth outreach • Convened Funding Work Group (including utilities) on Jan 18 and Feb 1 for feedback and discussion • Additional meetings for specific program development • Additional outreach at Jan 3 and Mar 7 CEAC meetings • Feb 2018: EVAC discussed staff’s proposals and recommended 2018 programming revisions at their Q1 meeting on Feb 12 • Mar 2018: Final feedback and discussion occurred at the CEP Board’s Q1 meeting 3
Residential Programs 2018 Target Energy efficiency program outreach via community-based organizations $75,000 contracted in Green Zones $0 Home Energy Squad (HES) Enhanced visits to residents in a Green Zone (regardless of income) and low-cost/no-cost visits for residents elsewhere in the city below AMI $150,000 0% interest loans for home insulation & air-sealing projects Feasibility and market study for on-bill, inclusive financing program in $25,000 Minneapolis Green Cost Share program (Housing) - incentives added to utility rebates through the Multifamily Building Efficiency (MFBE) program. Includes $139,000 single-family homes to leverage City's Lead & Healthy Homes work Multifamily Benchmarking Policy development and outreach in 2018 *Budget for utilizing $74,000 line item to Health Dept in adopted city budget additional resources in 2019* Green Cost Share program (Housing) - pilot program to utilize Class 4d (low-income rental housing) designation and add energy efficiency $50,000 incentives 4
Commercial and Industrial Programs 2018 Target Green Cost Share program (Business): target expenditure for incentives for general businesses, with priority for those participating in Xcel's $425,000 refrigeration program and/or in a Green Zone Fund 5 business districts / councils through B-TAP program to participate in the "Minneapolis Small Business Energy Initiative". Priority will be given $100,000 to Green Zones. Enhanced outreach to benchmarked buildings via a new FTE in the division of Sustainability. Enhanced outreach starting in 2019 includes sector- *Budget for specific workshops, CEP meetings with individual buildings, working w/ resources in utility account managers to incorporate benchmarking data, and 2019* navigation of city program offerings. Workforce Development Assessment for Renewable Energy and Energy $25,000 Efficiency Sectors. Support pre-development and scoping of a study. 5
EVAC’s Primary 2018 Recommendations • Recommended revisions that have been incorporated • Combine expenditure targets for no-cost/low-cost Home Energy Squad visits and 0% interest financing for insulation and air-sealing into one bucket for flexibility • Remove free small business audits due to existing equivalent programs, and redistribute funds • Add a $25,000 line item for a “Workforce Development Assessment for Renewable Energy and Energy Efficiency Sectors” • Overall, EVAC is satisfied with the process and engagement led by City staff to develop the programs and allocations 6
Other EVAC Recommendations • EVAC wrote a letter to the City’s CEP Board members advocating that in all future budgets, beginning with the 2019 budget, the full franchise fee increase revenue ($2.8M) is allocated to new and expanded programs. • EVAC recommended CEP Board discussion of if and how utilities could co-fund activities and redesign existing programs to match the increased City funding. 7
Next Steps • Commence 2018 program and activity implementation • Bring to City Council in coming months necessary contracts and inter-departmental fund transfers • Xcel Energy and CenterPoint Energy will report back via the CEP regarding program alignment and additional funding opportunities 8
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