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Home My WebLink About05 - Declaration of Support for an Energy Partnership Between Southern California Edison Company and Southern California Gas Company�EWPR CITY OF T - z NEWPORT BEACH <,FoR�P City Council Staff Report January 10, 2017 Agenda Item No. 5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Raymund Reyes, Management Specialist, rreyes@newportbeachca.gov PHONE: 949-644-3325 TITLE: Declaration of Support for an Energy Partnership Between Southern California Edison Company and Southern California Gas Company ABSTRACT: The City of Newport Beach previously entered into Energy Leader Partnership Program agreements with Southern California Gas Company (SCG) and Southern California Edison (SCE.) These agreements allowed the City to utilize project incentives and community outreach funds to increase City-wide energy efficiency. A resolution declaring support of the Energy Partnership between the City and both agencies would eliminate the need to renew each agreement every cycle and allow the City to take advantage of incentive and funding for the foreseeable future. RECOMMENDATION: a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2017-2, A Resolution of the City Council of the City of Newport Beach, California, Supporting an Energy Partnership Between the City of Newport Beach, Southern California Edison Company and Southern California Gas Company to be known as the "Energy Partnership." FUNDING REQUIREMENTS: There is no fiscal impact related to this item. However, this partnership continues the City's participation in SCE and SCG energy related incentives and programs. This allows the City to benefit from additional funding to supplement its energy efficiency goals and may result in energy cost savings and capital improvement funding. 5-1 Declaration of Support for an Energy Partnership Between Southern California Edison Company and Southern California Gas Company January 10, 2017 Page 2 DISCUSSION: The California Public Utilities Commission (CPUC) regulates and evaluates energy efficiency programs in the State. The CPUC works with investor-owned utilities (IOUs), other program administrators, and vendors to develop programs and measures within California using ratepayer funds. IOU programs are funded by a small portion of electricity and gas rates included in customer bills. These publicly -funded energy efficiency programs are normally administered by the state's four IOUs, which include SCE and SCG. From 2010 through 2012, SCE and SCG began coordinating with Orange County cities to implement local government energy efficiency partnerships. The Orange County Cities Energy Leader Partnership was established to provide additional funding to participating cities when investing in energy efficiency projects. This Partnership provides technical and financial assistance to help local governments effectively lead their communities to increased energy efficiency, reduce greenhouse gas emissions, protect air quality and ensure their communities are more livable and sustainable. In September 2011, the City entered into an agreement with Southern California Edison to join the Orange County Cities Energy Leader Partnership. The City entered into a similar partnership agreement with SCG in March 2013 for the 2013-2014 cycle via an amendment to the original agreement. Subsequent CPUC decisions approving continuation of the Energy Efficiency Partnership Program allowed participating cities to amend its existing agreements with SCE and SCG through the end of 2016. SCE and SCG recently coordinated with participating cities in developing a resolution to bridge their respective programs and provide for an evergreen partnership with each City. This eliminates the need to renew each agreement every cycle and allow the City to continue participation in the program for the foreseeable future. Since participating in the partnerships, the City has leveraged the program to further implement energy efficiency measures in municipal facilities, such as LED streetlights, Central Library HVAC retro- commissioning, and variable frequency drives at water production facilities. Currently, the City is looking to pursue incentives for ongoing LED streetlights and battery banking at the City's water pump stations. Program benefits have also provided additional resources and funds for marketing, outreach and education in order to connect the community with opportunities to save energy, costs, and promote the environment. 5-2 Declaration of Support for an Energy Partnership Between Southern California Edison Company and Southern California Gas Company January 10, 2017 Page 3 ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A - Resolution 5-3 ATTACHMENT A RBSOLUIIICN NC. 21017- A RESOLUTIC N C R THE CITY COL NCIL C FI THB CI11Y OF N EWRC RT BEACH, CALIFORNIA, SURRC RTIN G AN EN ERC YI PARTNERSIHIR BETWEEN Th E CITY CAI NEWPORT BEACH, SOL THERN CALIRC RN IA EDISON CCMPANY AND SOLTHBRN CALIFORNIA GASI CCMPANY IC BE KNCWN AS THE "ENERGY PARIINERSH IP" Wh EREAS, 1h6 comms niliEs in the ElnE rgy Part nE rship suppcirl energy EifiliciE ncy initiaiiveis, policiEis, and construction standards to Ensure chat ear ciommunitiEs follow and E ncc uragE SL siainat IE practices; Wh EREAS, Iccial demand fcir ClEiciricity has grown, and it is Expected that demand fcir electricity will ciontinue tc grow in the near f0urEi to support a grcwirig pops laiicn and eiccincrny; Wh EREAS, residE nts and businEsses spend significant arriounts fc r energy, it makes Econc mic sE nSC and gciod public poilicy lo einciouragei energy EfiliciE ncy in tl- E City cif Newpciri Beacl• (1"City",; Wh EREAS, E nEirgy efficiency programs enhance c ur envirc nmE nt by irriprciving air quality, nEiducing grEenhcusE gasEs and other pcdlution, and cioinserving natunal re sourcies; Wh EREAS, it is vital fon our ciommunity lo kEeip spEinding Ic cally and tc Ericcurage inncvaticins in the way WE build, and incioirporate EnEirgy intci ciun everyday bL siriEss and persc nal lives; Wh EREAS, the ccirrirriunitiES in ih6 Enengy RartnE rship seek tc prcirrioitei inncivative meithccls and stalei-cif-the-art te& ncilcigieis usEcl in ihE design and construction of new reisidEmtial and ccrrirriencial buildings within ihEi region, io tring EriEngy and nail ral rescurcE cionsumpticn in line will- our sustainability gcials; and Wh EREAS, the Energy Rartneirship brings 10gE ihE r tl- e City, SIC E, SCG and the Eneirgy Padnensl-ip mEirribEir agEincieis in a coicipEirativE program tc pnomctE EinEirgy Efficiency, nEigioinal susiairiat ility gcials, and cc Ilaboiration. NOW, IIHER9RCRE, the Cilly Council cf the City cf NEiwport E16a& resolvers as follows: Sleic tion 1: The C ity Council dolEis herEiby SL pport a cc rrirriitmE nt to sustainablei practicES through EnEirgy EfiliciEncy, and will provide IeadErship and guidance in promciting, facilitating, and instituting such practices in ihE City. 5-4 Resolution Flo. 2017 - Page 2 of Section 2: The City Council does hereby support and endorse the Energy Partnership (a SCE & SCG Local Government Partnership) as an effective method to help meet long-term regional economic and environmental goals. Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional, Section 5: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment; directly or indirectly. Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this day of 2017. Kevin Muldoon Mayor ATTEST: Leilani I. Brown City Clerk APP R AS TO FORM: CITIY EY'S OFFICE. Aaron C. Harp City Attorney 5-5