HomeMy WebLinkAbout06 - SCEdison Energy Leader Partnership���WPOaT = CITY OF
NEWPORT BEACH
C�Z OP ,P cuff CouncH Staff Report � � Agenda Item No. 6
March 26. 2013
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
David A. Webb, Public Works Director
949- 644 -3328, dawebb newportbeachca.gov
PREPARED BY: Iris Lee, Senior Civil Engineer
949 - 644 -3323, ilee(a)newportbeachca.aov
APPROVED:
TITLE: Energy Leadership Partnership between Southern California Edison
and the City of Newport Beach
ABSTRACT:
The 2013 -2014 Energy Leader Partnership Program agreement between the City and
Southern California Edison for the Orange County Cities Energy Leader Partnership
(Partnership) has been issued to extend program activities. Staff requests approval of the
"First Amendment to the Agreement to Jointly Deliver the 2010 -2012 Orange County Energy
Leader Partnership Program" allowing for the City to participate in the 2013 -2014 program
cycle.
RECOMMENDATIONS:
1. Authorize the City Manager to execute the "First Amendment to the Agreement to
Jointly Deliver the 2010 -2012 Orange County Energy Leader Partnership Program ".
2. Authorize the City Manager to execute future Energy Leader Partnership Program
agreements.
FUNDING REQUIREMENTS:
There are no funding requirements related to this item. The City, however, will directly benefit
from SCE's allocation to supplement funding for the City's energy efficiency goals.
DISCUSSION:
On September 13, 2011, the City entered into a joint partnership with Southern California
Edison via the Orange County Cities Energy Leader Partnership for 2010 -2012 funding
period. The Partnership was established to provide integrated technical and financial
assistance to help local governments effectively lead communities to increase energy
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Energy Leader Partnership between Southern California Edison and City of Newport Beach
March 26, 2013
Page 2
efficiency, reduce greenhouse gas emissions, protect air quality and ensure that communities
are more livable and sustainable. Since participation, the City has leveraged the program to
implement energy efficiency measures in municipal facilities, such as LED streetlights,
Central Library HVAC retro- commissioning, and variable frequency drives at water production
facilities; while providing marketing, outreach, education, and community sweeps to connect
the community with opportunities to save energy, costs, and promote the environment. The
2010 -2012 program cycle is now entering into the 2013 -2014 program cycle.
On November 15, 2012, the California Public Utilities Commission issued a final decision
approving the continuation of the Energy Efficiency Partnership Program for a two -year 2013-
2014 program cycle. Staff recommends City Council authorize the City Manager to execute
the "First Amendment to the Agreement to Jointly Deliver the 2010 -2012 Orange County
Energy Leader Partnership Program ", to allow the City to continue utilizing Partnership
funding to invest in energy savings projects and outreach efforts for the City.
As the Partnership framework is not expected to experience critical changes over the
upcoming program years, staff recommends Council authorize the City Manager to execute
future Energy Leader Partnership Program agreements.
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.
Projects funded as a result of this Partnership will be subject to environmental review.
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).
Submitted by:
/ L
David A. Webb
Public Works Director
Attachment: A. First Amendment to the Agreement to Jointly Deliver the 2010 -2012
Orange County Energy Leader Partnership Program
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ATTACIiMENT A
FIRST AMENDMENT
THIS FIRST AMENDMENT ( "FIRST AMENDMENT ") TO THE AGREEMENT TO JOINTLY
DELIVER TIE 2010 -2012 ORANGE COUNTY ENERGY LEADER PARTNERSHIP PROGRAM
dated Scptembcr13, 2011 (the "Agreement ") is effective as of January 1, 2013 (the First Amendment
Effective Date) by and among SOUTHERN CALIFORNIA EDISON COMPANY ( "SCE "), AND The
City of Newport Beach ( "The City ") Terms not otherwise defined herein shall have the meaning ascribed
to them in the Agreement. SCE may be referred to individually herein as the "Utility", SCE and The City
may be referred to herein individually as a "Party" or collectively as the "Parties."
RECITALS
WHEREAS, the Parties previously executed the Agreement to Jointly Deliver the 2010 -2012
ENERGY LEADER PARTNERSHIP PROGRAM effective January 1, 2010 ( hereinafter referred to as
the "2010 -2012 Program ");
WHEREAS, on May 18, 2012, the Commission issued a Decision Providing Guidance on 2013-
2014 Energy Efficiency Portfolios and 2012 Marketing, Education, and Outreach ( "Final Guidance
Decision ") guiding the Utility to continue the ENERGY LEADER PARTNERSHIP PROGRAM, which
included the Orange County Cities Energy Leader Partnership Program, through a two year 2013 -2014
transition period (hereinafter referred to as the "2013 -2014 Program ");
WHEREAS, on July 2, 2012, the Utility submitted its application ( "2013 -2014 Application ") for
the implementation of energy efficiency programs to be delivered to California utility customers for the
years 2013 through 2014, which included the 2013 -2014 Program, a continuation of the 2010 -2012
Program;
WHEREAS, on November 15, 2012, the Commission issued a Final Decision approving the
2013 -2014 Application as submitted ( "Final Decision "), thereby approving continuation of the Energy
Efficiency Partnership Programs, which includes the 2013 -2014 Program, and the Parties desire to extend
the Agreement through 2014 under the terms and conditions set forth in the Agreement, except as
otherwise provided in this First Amendment; and
WHEREAS, the Parties desire to further amend the Agreement as necessary to provide an
authorized budget for the 2013 -2014 Program and to update the Agreement as required to reflect the
extended 2013 -2014 Program cycle.
NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:
1. Except as provided herein, and to the extent applicable, any reference in the Agreement to the "2010-
2012 Program" shall hereby include both the 2010 -2012 Program and the 2013 -2014 Program.
2. Section 1.13 of the Agreement is hereby deleted in its entirety and replaced with the following:
1.13 PIP or Program Implementation Plan: The most recent Commission decision approved and
publicly available plans for implementing the Program in each Utility's service territory
3. Section 3.2 of the Agreement is hereby deleted in its entirety and replaced with the following:
3 of
3.2. Energy Leader Partnership Level. The Program offers a tiered Incentive structure through
achievement of four separate levels of participation: "Valued Partner," "Silver," "Gold" and
"Platinum." The City will enter the Program at a level of participation which has been determined
by the City's past participation in SCE energy efficiency and demand response programs both at
the city level and at the community level. Exhibit A further explains each level and the energy
savings requirements for moving to the next Energy Leader Partnership level. SCE will track the
City's performance under this Agreement against the goals and objectives set forth herein, and
will notify the City when it has achieved the next incentive level.
4. Section I 1 of the Agreement is hereby deleted in its entirely and replaced with the following:
11. END DATE FOR PROGRAM AND ADMINISTRATIVE ACTIVITIES
Unless this Agreement is terminated pursuant to Section 25 below, or unless otherwise agreed
to by the Parties or so ordered by the Commission, the Parties shall complete all Program
Administrative activities (as defined in the PIP) and all reporting requirements by no later than
March 31, 2015, and all Direct Implementation and Marketing & Outreach activities by no later
than December 31, 2014,
5. Section 12 of the Agreement is hereby deleted in its entirety and replaced with the following:
12. FINAL INVOICES
The City must submit final invoices to SCE no later than March 31, 2015.
6. Section 25.1 of the Agreement is hereby deleted in its entirety and replaced with the following:
25.1 Tenn. This Agreement shall be effective as of the Effective Date. Subject to Section 37,
the Agreement shall continue in effect until June 30, 2015 unless otherwise terminated in
accordance with the provisions of Section 25.2 or 30 below.
7. Section 26 of the Agreement is hereby deleted in its entirety and replaced with the following:
26. WRITTEN NOTICES
Any written notice, demand or request required or authorized in connection with this
Agreement, shall be deemed properly given if delivered in person or sent by facsimile, nationally
recognized overnight courier, or first class mail, postage prepaid, to the address specified below,
or to another address specified in writing by a Party as follows:
The City: SCE:
City of Newport Beach Southern California Edison Company
Iris Lee, Senior Civil Engineer Bernard Adebayo -lge, Program Manager
3300 Newport Blvd 1515 Walnut Grove Avenue
Newport Beach CA 92663 Rosemead, CA 91770
Notices shall be deemed received (a) if personal ly or hand - delivered, upon the date of delivery to
the address of the person to receive such notice if delivered before 5:00 p.m. PST (or PDT, as
applicable), or otherwise on the Business Day following personal delivery; (b) if mailed, three (3)
Business Days after the date the notice is postmarked; (c) if by facsimile, upon electronic
confirmation of transmission, followed by telephone notification of transmission by the noticing
SCE CONFIDENTIAL 4 of 8 2 of 6
Party; or (d) if by overnight courier, on the Business Day following delivery to the overnight
courier within (lie time limits set by that courier for next -day delivery.
8. This First Amendment may be executed in one or snore counterparts, each of which shall be deemed
to be an original, but all of which together shall be deemed to be one and the same instrument.
9. Exhibit A (ENERGY LEADER PARTNERSHIP — PROGRAM LEVEL DATA) and Exhibit B
(ENERGY LEADER PARTNERSHIP PROGRAM 2010 -12 GOALS & PARTNER BUDGET) of
the Agreement are hereby deleted in their entirety and replaced with the versions of Exhibit A
(ENERGY LEADER PARTNERSHIP — PROGRAM LEVEL) and Exhibit B (ENERGY LEADER
PARTNERSHIP PROGRAM 2013 -14 GOALS & PARTNER BUDGET FOR Oranee Cozmh� Cities
attached to this First Amendment, which attached versions are incorporated herein by reference and
made a part of the Agreement.
10. General. From and after the First Amendment Effective Date, any reference to the Agreement
contained in any notice, request, certificate or other instrument, document or agreement shall be
deemed to mean the Agreement, as amended by this First Amendment. In the event of any conflict
between the Agreement and this First Amendment, this First Amendment shall prevail. All remaining
provisions of the Agreement shall remain unchanged and in full force and effect. Each party is fully
responsible for ensuring that the person signing this First Amendment on that party's behalf has the
requisite legal authority to do so.
[SIGNATURES FOLLOW ON NEXT PAGE]
SCE CONFIDENTIAL 5 of 8 3 of 6
IN WITNESS WHEREOF, the Partics hereto have caused this First Amendment to be executed by their
duly authorized representatives as of the First Amendment Effective Date.
The City:
Citv of Newnort Beach
By:
Name Printed:
Title:
Date:
SCE:
SOUTHERN CALIFORNIA EDISON COMPANY
M
Name Printed: Erwin Furukawa
Title: Senior Vice President, Customer Service
Date:
SCE CONFIDENTIAL 6 of 8 4 of G
EXHIBIT A
ENERGY LEADER PARTNERSHIP - PROGRAM LEVEL
Energy Leader Partnership levels are:
Valued Partner Level — This level is the entry level for the partner to develop knowledge and establish goals towards the
Silver Level. A budget is available for energy savings projects, for marketing, education, and outreach to the community, as
well as for technical assistance toward upgrading or retrofitting partners' facilities. SCE's core program incentives will be
offered directly to the partner. The partner will be expected to use the marketing and outreach funds to generate verifiable
energy savings in their own facilities and in the commmnity and will participate in demand response at a basic level. Valued
Level provides the Partner with 3 cents per kWh paid in addition to what is paid to the Partner under SCE's core program.
Silver Level —To qualify for this level, the partner demonstrates past participation in SCE energy efficiency programs,
develops an energy action plan, sets community and municipal energy reduction goals, targets 25 percent of its facilities to
complete energy efficiency upgrades, and participates in demand response. An enhanced incentive is paid at the Silver
Level. Silver Level provides the Partner with 6 cents per kWh paid in addition to what is paid to the Partner under SCE's
core program.
Cold Level —To qualify for this level, the partner demonshates higher past participation in SCE energy efficiency
programs, establishes higher municipal and community program participation and energy savings goals and makes a higher
commitment to participate in demand response. Incentive factors are higher for partner facilities' energy efficiency projects.
Gold Level provides the Partner with 9 cents per kWh paid in addition to what is paid to the Partner under SCE's core
program
Platinum Level — To qualify for this level, the partner demonstrates even higher past participation in energy efficiency
programs, is innovative and integrates Energy Action Plan policies, ordinances and procedures. All facilities are targeted for
energy efficiency upgrades and the partner makes a higher commitment to participate in Demand Response. Incentive
factors are highest for Partner facilities' energy efficiency projects and additional incentives are made available for
customized community energy efficiency projects. Platinum Level provides the Partner with 12 cents per kWh paid in
addition to what is paid to the Partner under SCE's core program.
SCECOMIDENTIAL 7 ot8 5of6
EXHIBIT B
ENERGY LEADER PARTNERSHIP PROGRAM
2013 -14 GOALS & PARTNER BUDGET
FOR OC Cities
Program Cycle Partner Budget and Goals:
"(Marketing & Outreach, Technical Assistance and Direct Implcmcntution)
SCE CONFIDENTIAL 8 of 8 6 of.6
Maximum Partner
Budget
Energy Savings
Goal
(kWh)
Peak Demand
Reduction Goal
(kW)
Total :
$1,533,703
4,602,923 KWh
129
Llcentive:
$ $883,703
*Non- Incentive:
$ 650,000
"(Marketing & Outreach, Technical Assistance and Direct Implcmcntution)
SCE CONFIDENTIAL 8 of 8 6 of.6