2018 Energy and climate programming in from the utility franchise - - PowerPoint PPT Presentation

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

1

March 26, 2018

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

Ongoing General Fund appropriation of $989,000 in 2018 for projects to be allocated through the Clean Energy Partnership (CEP)

2018 City Budget adopted (Dec 6, 2017)

2

Utility Franchise Fee Increase adopted (Dec 8, 2017)

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

4

Residential Programs 2018 Target

Energy efficiency program outreach via community-based organizations contracted in Green Zones $75,000 $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 Minneapolis $25,000 Green Cost Share program (Housing) - incentives added to utility rebates through the Multifamily Building Efficiency (MFBE) program. Includes single-family homes to leverage City's Lead & Healthy Homes work $139,000 Multifamily Benchmarking Policy development and outreach in 2018 utilizing $74,000 line item to Health Dept in adopted city budget *Budget for additional resources in 2019* Green Cost Share program (Housing) - pilot program to utilize Class 4d (low-income rental housing) designation and add energy efficiency incentives $50,000

5

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 refrigeration program and/or in a Green Zone $425,000 Fund 5 business districts / councils through B-TAP program to participate in the "Minneapolis Small Business Energy Initiative". Priority will be given to Green Zones. $100,000 Enhanced outreach to benchmarked buildings via a new FTE in the division

• f Sustainability. Enhanced outreach starting in 2019 includes sector-

specific workshops, CEP meetings with individual buildings, working w/ utility account managers to incorporate benchmarking data, and navigation of city program offerings. *Budget for resources in 2019* Workforce Development Assessment for Renewable Energy and Energy Efficiency Sectors. Support pre-development and scoping of a study. $25,000

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