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16-Deliberate and act on a resolution authorizing the application for Energy Efficiency and ConservationCITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 10/07/09 Council Date: City Manager Kevin Carruth 16. 10/12/09 RECOMMENDED MOTION: Move to approve a resolution authorizing the City Manager to pursue all EECBG funding made available through ARRA to be used to assist the City with energy efficiency. POLICY ISSUE(S): Required by grant BACKGROUND: The American Recovery and Reinvestment Act (ARRA) has allocated more than $45 million to the State Energy Conservation Office (SECO) for the Energy Efficiency and Conservarion Block Grant (EECBG) program. The purpose of the program is to provide funds to units of local government to develop and implement projects to improve energy efficiency and reduce energy use and fossil fuel emissions in their communities. The City of Paris has been tentatively allocated $75,000 from EECBG. One of the first steps to receive the funds is for the City Council to adopt a resolurion supporting the pursuit of all EECBG funds. Staff is currently evaluating potential projects and their return on investment, including replacing older pumps with variable frequency drive pumps, Energy Star qualified roofs on the City Hall Annex and City Hall, HVAC installation at the Water Treatment Plant, light ballast replacement, and installation of programmable thermostats at various locations. The resolution has to be submitted by November 21 and SECO will return a final allocation letter and applicarion by December 6, and we must return the application by December 21. The grant agreement must be executed by March 21, 2010, and funds expended by September 22, 2012. There will be a second round of funding if eligible communities in the first round decline their awards and this resolution authorizes pursuit of those funds as well. BOARD/COMMISSION RECOMMENDATION: EXHIBITS: Resolution; EECBG Eligible Activities; Common Energy Conservation Measures ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $ ❑ Depamnent Report Z Resolution Budgeted Amt. $ ❑ Presentation ❑ Ordinance y'r'D Actual $ ❑ Public Hearing ❑ Other Acct. Name Acct. Number FISCAL NOTES: REVIEWED AND APPROVED BY: Z Administrarion Z City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire ❑ Municipal Court ❑ Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris Revised 2/04/08 am 6 5 DRAFT f:attomey\reswork\currenNenergy efficiency and conservaHon block grant res 2009 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS; DELIBERATE AND ACT ON A RESOLUTION AUTHORIZING THE APPLICATION FOR ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT FUNDS; AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ALL NECESSARY DOCUMENTS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Congress passed the American Recovery and Reinvestment Act (ARRA) of 2009 and the President signed into law on February 17th, 2009, to stimulate the economy and create jobs; and, WHEREAS, ARRA included $3.2 billion in funding for the Energy Efficiency and Conservation Block Grants (EECBG) Program authorized in Title V, Subtitle E of the Energy Independence and Security Act (EISA) and signed into law on December 19, 2007; and, WHEREAS, the purpose of the EECBG program is to, 1) reduce fossil fuel emissions in a manner that is environmentally sustainable, and to the maximum extent practicable, maximizes benefits for local and regional communities; 2) to reduce the total energy use of eligible entities; and, 3) to improve the energy efficiency in the building sector, the transportation sector and other appropriate sectors; and, WHEREAS, the City of Paris is a city with limited financial resources and desires to support the development of energy efficiency programs; and, WHEREAS, the City of Paris accepts its allocation and may also accept additional funds that may become available at a later date; and, WHEREAS, the City of Paris has developed or is interested in developing a EECBG project, which is sustainable and has measurable energy savings, job creation and economic stimulus effects into the city; and, WHEREAS, the City of Paris is determined to support energy efficiency projects that leverage federal funds with other public and private resources, including coordinated efforts involving other Federal programs targeting community development; and, WHEREAS, the City of Paris intends to comply with all agreed upon contractual requirements of ARRA, the EECBG program and other federal and state law: 66 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. The City of Paris, through the City Manager, pursue all EECBG funding made available through ARRA and being allocated by the State Energy Conservation Office to be used to assist in reaching the city's goals of energy efficiency. Section 3. The City of Paris continues its commitment toward energy efficiency for the citizens of Paris and all of Texas. Section 4. This resolution shall be effective from and after its date of passage. DULY PASSED AND APPROVED this 12th day of October, 2009. Jesse James Freelen, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney „W 67 Energy Efficiency and Conservation Block Grant Eligible Activities Building energv audits and retrofits - An energy audit first identifies how energy is used in a facility, and then recommends ways to improve energy efficiency and reduce energy costs. Local governments can also retrofit existing facilities to improve energy efficiency. These retrofit programs may be linked to specific energy efficiency and renewable energy applications, such as energy benchmarking tools like ENERGY STAR Portfolio Manager. Possible activities include, but are not limited to: • Detailed investment grade energy audits • Upgrading facility and i nfrast ructu re- related pumps and motors to variable-speed or premium efficiency standards. This applies to HVAC systems as well as Water / Wastewater treatment, processing and distribution • Sealing and restoring HVAC ducts, installation of window treatments such as awnings, solar deflection screens, double pane insulation or solar film or glazing • Install reflective, cool, or green roofing, including qualified Energy Star roofs which are weather resistant and reflective Project Example: A City decided to do an investment-grade energy audit, focusing primarily on the HVAC system. XYZ, Inc., a heating, ventilation and air conditioning (HVAC) engineering specialist, conducted the audit by monitoring and analyzing real-time operations for two-and-a-half months. The trend-and- data-logging resulted in more than 70 recommendations to improve energy efficiency, none of which required major equipment investments. The staff at the City evaluated the recommendations based on their internal investment criteria, then worked with XYZ, Inc. to implement those strategies that made financial sense. First year energy savings were 881,552 kWh (55 percent reduction) and 73,590 therms (85 percent reduction), saving the City about $150,000. Payback on investments identified in the energy audit was less than one (i) year. Installation of distributed ener¢v technologies - Local governments may implement distributed energy resource technologies that significantly increase energy efficiency, including: • District heating and cooling systems • Combined heat and power systems • Cogeneration systems • Energy Storage systems • Absorption chillers • Desiccant humidifiers • Micro turbines • Ground source heat pumps ~ ~ ~ ~ 68, Local governments can implement combined heat and power applications which will, over the long term, effect energy efficiency and improve renewabte energy systems. Combined heat and power (CHP), also known as cogeneration, is the simultaneous production of electricity and heat from a single fuel source, such as: natural gas, biomass, biogas, coal, waste heat, or oil. CHP provides for the following possible activities: • Onsite generation of electrical and/or mechanical power • Waste-heat recovery for heating, cooling, dehumidification, or process applications • Seamless system integration for a variety of technologies, thermal applications and fuel types into the existing building infrastructure Other possible activities include, but are not limited to: • Optimization, upgrade or replacement of boiler system components or processes to allow for CHP applications; • Optimization, upgrade or replacement of district heating, cooling or energy systems to provide for CHP applications such as with institutions or municipal facilities • Application of CHP to water and wastewater treatment plants For resources related to distributed energy technologies, go to: http://www.eere.energv.Fov/de/ and http://www.epa.gov/chp/basic/index.html Installation of energv-efficient traffic signals and street lighting - Local governments can replace traffic signals and street lighting with energy efficient lighting technologies, including light emitting diodes; and any other technology of equal or greater energy efficiency. Operating 24 hours a day, traffic signals are both a large consumer of energy and a key to public safety. Traditional incandescent bulbs are increasingly being replaced by lamps deploying light-emitting diodes (LEDs). The new LED traffic lights consume only 10% the wattage of their predecessors and last much longer, which lowers the frequency and cost of replacement. Nationwide, more than 30% of traffic lights have been converted to the LED type. Possible Activities: • Installing street tight timers • Installing LED traffic signals • Installing high efficiency low-sodium, conductive or other high efficiency, long-life street lighting Example: A City and County began to replace incandescent bulbs in pedestrian and traffic signals with high efficiency light-emitting diode (LED) lights. The LED signals have a lifetime of 100,000 hours, and consume 14 watts of electricity or less, as compared to the 150 or 69-watt incandescent bulbs they replaced. Also, they are brighter than typical incandescent traffic lights. ~ ~ 6 `t Installation of renewable energv technologies on aovernment buildings - Local governments may develop, implement, and install on or in any government building of the eligible entity onsite renewable energy technology that generates electricity from renewable resources, including biomass; fuel cells; solar energy; and wind energy, for example. . Once a facility or building demonstrates maximum energy efficiency, it is then ready to consider the application of renewable energy technology. By installing equipment that captures energy from sunlight, wind, water, and other renewable energy sources, local governments and communities can achieve substantial energy, environmental, and economic benefits. Installing on-site renewable energy generation systems at city and county facilities can also be an effective way to demonstrate a local governmenYs commitment to meeting community greenhouse gas (GHG) emission reduction goals. Before investing in any kind of power generation technology, grantees are encouraged to first minimize total energy consumption by taking the appropriate steps to maximize energy efficiency. Possible activities will vary by location, capacity and capabilities, and include: • Installation of a solar hot water system • Installation of geothermal energy system • Installation of hydro/water system • Installation of solar PV energy systems • Installation of small wind generation Examp/e: A City can demonstrate leadership by generating 100% of the energy used by its town hall from renewable resources by using geothermal energy to reduce heating and cooling loads; and using solar photovoltaic panels to produce enough power to meet the balance of the building's energy needs. For best practices, projects and other resources related to EECBG eligible activities, go to: http://www.eecbg.energv.gov/SolutionCenter/elip,ibleactivities/default.htm I a 70 Common Energy Conservation Measures (ECM's) The following table lists commonly reported and recommended Energy Conservation Measures (ECM's) for entities fhroughout the state. The informaGon was derived from the S612 entity annual repoR narratives, Preliminary Energy Assessments (PEA's) conducted by SECO, and with the assistance of SECO engineering contractors. The figures in the table are a roximanons ana ao no[ neces san renect ine enure ran e or ro ecis a no meir tennai s avi s, ana are oasea on a vanei oi ro eca sw s. N d 15 4 1 11; K 1 . . . d . ~F ,n - , . e r 'ae *sr " . _ . , v, 1 ENERGY/ •O • MANAGEM ENT This is a low to no-cost measure that is built into most computers, nla and involves setting the computer to engage "Sleep Mode" after a Energy Star Power No cost (depends on $25-$150 designated period of inactivity. This global network signal feature Management Software equipment) Per machine activates the Power Saver feature of the PC. Libraries and City Halls are common facilities to utilize this measure. These systems can be integrated into facility operations to efficiently manage multiple systems to achieve the highest energy efficiency. These measures commonly entail an upgrade and Energy Management and Control Systems $a,000 - $160,000 6-16 yrs s°o - 15°o integration of existing thermostats into the energy management system or an upgrade of outdated energy management systems. City Halls, Police Departments and Jails are common facilities to utilize this measure. Vending machine economizers are simple devices similar to lighting-related occupancy or motion sensors which are compatible Vending Machine $100-$2so 1.3 -3.3 yrs $30 -$75 With most vending machines. These cycle the power to the vending Economizers per machine machine when there are no occupants in the vicinity but maintain o timal servin tem eratures HEATING . • AND A - • DITIONING (HV A These retrofits generally reduce the overall running time of the Control Software 1 Equipment Retrofds $11,600- $31,200 3.5 - 5.6 yrs 18% - 28% HVAC system and maximize efficiency through upgraded mechanical and o eratin elements. This low cost measure involves setting the HVAC controls in facilities to optimal temperature settings. This can be done with Occupancy Based Settings $200-$250 10 - 20 y`s $50 existing programmable thermostats or through manual settings. City and Controls (per thermostat) per thermostat Halls, Police Departments, Offices and Community Centers are common facilities to utilize this measure. This measure can vary greatly in cost and savings depending on the application and existing conditions of the current HVAC system. S3,400 - ° ° This measure typically includes upgrades and replacements of System Retrofits $200,000 5.5-16.6 yrs s io - 1a io window units, spot coolers, chillers and cooling towers with split system heat pumps. Fire Stations, Police Stations, City Halls, Jails LIGHTING and Courthouses are common facilities to utilize this measure. This measure typically involves replacing magnetic ballasts which house T-12 lighting with high efficiency 28-watt electronic T-28 Ballast 1 Fixture Replacement $300 -$100,000 10 - 12.5 yrs a%- 1o°io ballasts which house modern higher efficiency lighting. Offices, Community Centers and Jails are common facilities to utilize this measure. This measure varies depending on the ballast type, but typically Bulb Replacement S100 -$5,000 1.3-6yrs is°io-79% involves replacing existing bulbs with the bulbs with the highest available efficienc . This measure involves the integration of natural lighting into facilities to supplement the lighting needs of the facility. Such measures can work as a retrofit project and as design specifications Day Lighting Control $6,000 -$15,000 8.3 -14.3 yrs 7% -12% for facilities. It can also integrate an automated system that varies lighting production based on actual lighting needs for the facility and thus can be a costl ex ense. This measure typically involves replacing high pressure sodium or Street Light Bulb $400 -$1,20o z- a yrs ao% mercury vapor street lighting with high efficiency metal halide Replacement lighting. Other lighting technology such as convection lighting may be a feasible consideration for arkin lot and other a lications. Y ~ Common Energy Conservation Measures (ECM's) This is a relatively low-cost measure that integrates technology in Motion I Occupancy which lighting is activated only when an occupant is present. Sensors $350 -$2,000 3.1- 6.6 yrs o o 15 /0 32 /o Offices, Libraries, IT buildings, Recreation Centers, Police and Fire Departments, and Municipal Courts are common facilities to utilize this measure. This measure involves replacing the incandescent traffic signal Traffic Si9nal Bulb 1 Fixture $3,000 -$so,ooo bulbs and fixtures with LED lights. The estimated cost range is Replacement (LED) per intersection 7.2 - 2.5 yrs 40% - 85°o intended to reflect the cost of one intersection. These retrofts not only significantly decrease consumption but also typically result in lower maintenance costs due to lon er lastin forhnninnii . -A • A . MAI NTENANCE • : This low cost measure involves standard maintenance to clear the Air Coil Cleaning $200 4.7 yrs 5% -15% coils of debris. This measure can be integrated into routine maintenance rocedures. Many facilities, including those that are newly constructed, are subject to human or technological errors or variations. This measure Commissioning $21,000 - 3.3 -5.6 yrs 18°io - 30% involves a thorough checkup and tune-up of facilities to ensure that S340,000 the building and facility systems operate at optimal levels. City Halls, Detention Centers, Court Houses and Conference Centers are common facilities to utilize this measure. This measure involves taking a'big picture' look at your facilities and the design standards and specifications used, and provides Retro • commissioning Varies nla 5%-15% alternatives and recommendations to design standards and specifications and building codes, and helps to identify inherent flaws in these areas. PUMPS AND • O- High Efficiency Motors $2,000 - $4,500 10 -12.5 yrs a°io - 1o°io This measure typically involves upgrading HVAC fan motors and Pum motors with Hi h efficienc models. Variable Frequency Drives (VFD) is a technology that applies to Variable Frequency Drive many areas inciuding various types of pumps, motors and drives. (VFD) Motor Applications $5,000 -$12,000 8.3 -12.5 rs y 8% -12% Although these improvements can be costly, they can provide significant savings for entities involved with pumps and HVAC Air Handlers. Variable Frequency Drive $17,500 - This measure typically involves integrating VFD technology or (VFD) Pump Applications $43,000 70-20.3 yrs 7%- 25% Premium Efficiency Pumps into water / wastewater, pumping / rocessin and well operations. ATER USE and D • Although this measure has an approximate R01 of 9 years, it helps Low Flow Plumbing the entity to conserve both electricity and water through more Fixtures $500 -$10,00o 9.7 yrs 10% efficient plumbing fixtures. The 10% estimate does not include water savings and associated savings from pumping / processing the water. Wate~ Heater Timers 1 Time This measure allows the user to determine times which the water ciock $170 5.6 -11 rs y 1% - 3% heater does not need to operate, and can be used with Energy Efficient, Tankless and Roof-Mounted solar water heaters. WATER TREATMENT . PROCESSING Although this measure is relatively costly compared to other Waste Water Treatment 000 - $125 measures, it can result in substantial energy and monetary savings, Ptant Bubble Diffusers 1 , $250 o0o 3.3 • 4 yrs 25% - 30% with an a roximate R01 of 3 to 4 ears. Common a IIC8ti0f1S Aerators , include upgrades or enhancements to waste-heat recovery and di ester as s stems. Many water treatment facilities require a certain concentration of oxygen in order to proceed with processing. This measure allows Dissolved Oxygen Sensor $5,000 - g10 000 1 - 4.5 yrs 20°o - ao°io automatic detection of oxygen levels which, when used with (instaiq , variable speed motors, can greatly increase efficiency by modulating the motors to operation levels needed to complete the rocessin .