PPL COMMISSIONER COMMITTEE MEETING UPPER DUBLIN TOWNSHIP PLANNING, PARKS & LIBRARY COMMITTEE TUESDAY, JUNE 25, 2019 | 7:00 PM Main Meeting Room
The meeting location is accessible to person with disabilities. A request for special accommodations for persons with disabilities should be made at least 24 hours in advance of the meeting by calling 215-643-1600 x3220. The agenda may be amended during the meeting to add or delete items, change the order of agenda items, or discuss any other business deemed necessary at the time of the meeting.
1 CALL TO ORDER
2 PLEDGE OF ALLEGIANCE
3 CORRESPONDENCE AND ANNOUNCEMENTS
4 STANDARD BUSINESS 4.a. MOVE to accept the minutes from the April 23, 2019 meeting without reading.
5 REPORTS 5.a. Report of the Library Director 5.b. Report of the Parks & Recreation Director 5.c. Report of the Environmental Protection Advisory Board 5.d. Report of the Planning Commission
6 DISCUSSION ITEMS 1 6.a. Discuss Twining Valley - Preparing for Management (presentation and discussion) 6.b. Discuss Amendments to Real Estate Sign Regulations 6.c. Amendment to the Greater Fort Washington District Ordinance Height Restrictions Map, UD #19-04
7 NEXT MEETING: AUGUST 27, 2019 AT 7:00 PM
8 ADJOURN
2 Agenda Item No:4.a
Planning, Parks & Library Committee Agenda Item Report Meeting Date: June 25, 2019 Submitted by: Deb Ritter Submitting Department: Item Type: Minutes Agenda Section:
Subject: MOVE to accept the minutes from the April 23, 2019 meeting without reading.
Suggested Action:
Attachments: MinutesBOC-PPL-20190423.pdf
3 A meeting of the Planning, Parks and Library Committee (PPL) of Upper Dublin Township (UDT) was held on Tuesday, April 23, 2019, at 7:00 PM, in the Township Building, Chairperson Rebecca Gushue presiding.
In attendance were Commissioners Rebecca Gushue, Meredith Ferleger, and Dr. Gary Scarpello. Also present were Paul Leonard, Township Manager; Gilbert High, Township Solicitor; Cherilyn Fiory, Director of the Upper Dublin Public Library (UDPL); Derek Dureka, Director of Parks and Recreation (UDPR); and Cheryl Knight, Chairperson of the Environmental Protection Advisory Board (EPAB).
PLEDGE OF ALLEGIANCE: Ms. Gushue asked all present to pledge allegiance to the flag.
ANNOUNCEMENTS: Ms. Gushue reminded that the Upper Dublin Triathlon is coming up on May 19, 2019 and that registration is open.
PRESENTATIONS: Derek Dureka introduced a group of Upper Dublin High School students who were participating in a Problem-Based Learning (PBL) class. These students presented a bold new approach to Robbins Park. This PBL class has spent the past school year planning, designing and now proposing a new design for an environmentally sustainable building and plan for Robbins Park.
STANDARD BUSINESS: Move to Accept the Minutes from February 26, 2019 Without Reading: Dr. Scarpello motioned, with Ms. Ferleger seconding, to accept the Minutes of the PPL meeting of February 26, 2019 without reading.
VOTE ON MOTION ALL YES MOTION CARRIED
REPORTS:
Report of the Upper Dublin Public Library (UDPL) Director: Cherilyn Fiory reported on activities at the UDPL as follows:
Updates: April contains both National Library Week and National Volunteer Week. We celebrated National Volunteer week by honoring our volunteers with our annual luncheon. Alan Libove received the Volunteer of the Year Award for his work as a volunteer tech tutor. We celebrated National Library Week with the 300 Books in a Day Challenge, residents and staff read 321 picture books that day. We invited the community to help us select two more museum passes to add to our collection for borrowing. Grounds for Sculpture in Hamilton, NJ was the clear winner.
Author Events/Programs for Adults: The Library will be hosting a performance this Friday at 7 PM by the Ambler Symphony Orchestra String Quartet. On Friday May 17 it will be an evening of opera and American song performed by Opera North, Inc. We encourage residents to bring their families. 4 1
The Library will be partnering with the Upper Dublin Police Department in hosting Mental Health Awareness: Recognition and Resources on May 8 at 7 PM.
Children’s Programs: A Visit from Mother Goose on Monday, May 6 at 10:30 AM and Touch a Truck on Friday, May 10 at 1:30 PM.
Staff are preparing for Summer Quest, our summer reading program, this year’s theme is A Universe of Stories.
Additional information can be found at the UDPL. Stop into the Library or visit udpl.org for more information.
Report of Upper Dublin Parks and Recreation (UDPR) Director: Derek Dureka reported on activities at UDPR as follows:
Recreation: Summer camp registrations are continuing and we have already surpassed last year’s registration numbers.
April 12 we held our Annual Eggstravaganza with approximately 100 people participating.
Today we hosted our Comical Kids Concert with over 150 people in attendance.
Discounted park tickets will be available tomorrow on our website.
Upcoming Events: Everybody’s Theater Company Murder Mystery on May 10 and 11 Spring Flee Market & Sports Equipment Swap on June 1 NYC Day Trips on May 8 and June 19 Discount Phillies tickets vs the Cincinnati Reds on June 8 and in July vs the Nationals, the fireworks game
Park Division: Parks staff has been busy preparing 25 athletic fields and regular mowing operations. New equipment has been installed at Mondauk Common.
Township Fundraising Events: Monte Carlo Night was held Saturday March 23 at the Mercedes Benz of Fort Washington. The unofficial numbers topped all past fundraising efforts. The 8th Annual UD Triathlon will be held Sunday May 19, 2019. We are anticipating 375-380 participants. Volunteers are still needed, please contact our office if you are interested.
Upper Dublin Township’s 300th Anniversary of Incorporation: The Tricentennial celebrations continue with the Parade on May 4, approximately 700 people are set to participate. Community Dinner and Dancing on Loch Alsh will be Friday June 21. AutoFest will be September 15 and the Fall Fest will be November 3. 5 2
Update on Twining Valley: We have given two presentations on the site development plan, one in February and one in April. Overall, we have received positive feedback. We have applied for two grants and we are working on applying for one more. We have been exploring interest in the clubhouse.
Ms. Gushue asked about the types of business interested in the clubhouse.
Mr. Dureka stated that there has been interest in maintaining the clubhouse as a fitness facility, but there has also been some interest in restaurant/catering facility.
Mr. Dureka also mentioned that he, along with Rebecca Lohoefer, have been working on a “New Business Welcome” initiative. This will include staff visiting new businesses, introducing ourselves and highlighting them through social media.
Report of the Environmental Protection Advisory Board (EPAB): Ms. Knight reported on the activities of the EPAB as follows:
At our April meeting we welcomed our newest member Dr. Marc Osias.
At our March meeting we were joined by a group of Upper Dublin residents promoting the “Ready for 100” Sustainable Energy Initiative, which is a commitment to 100% renewable energy by 2035.
Also in March Mike Hass and I attended the Pennypack Sustainable Film Series and had the opportunity to speak with residents about the spotted lantern fly and other issues.
In May we plan to send representatives from our Board to the Annual Environmental Advisory Council Conference in the Poconos. It is an educational and networking opportunity for EAC’s.
The EPAB will be participating in the Wissahickon Valley Watershed Association creek clean up this Saturday, April 27. We always welcome volunteers.
Ms. Gushue mentioned that the “Ready for 100” Sustainable Energy Initiative seems like a lofty goal and asked if the presenter was able to give a detailed plan on how the Township could go about something like this.
Ms. Knight stated that the EPAB has been looking into this for a few months and had that same feeling. However, by gathering information it is seeming more realistic. To clarify, it is renewable electricity by 2035 and 100% renewable energy by 2050.
Mr. Leonard stated that this initiative is absolutely achievable. The township has been at 100% renewable in the past, but it came at a significate premium. The township can perform updated feasibility studies on this.
Ms. Knight mentioned presenting a stepwise plan that explains these different measures.
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Report of the Planning Commission (PC): Mr. Barton reported on the activities of the PC as follows:
The three major projects we have been working on, most notably has been the proposed Greater Fort Washington zoning ordinance. We have had a number of public hearings. We hope the final public hearing will be May 14. We took seriously the BOC’s comments at the last public hearing and I have highlighted a few key changes:
1. Density is capped at 50 units/acre 2. Maximum height will be reduced to 75 feet.
The second project we just reintroduced to the PC was to upgrade our sign regulations. One of the problems in the office park are what we call limited duration signs, these are for lease or for rent signs. We currently have no control over these and we are looking to institute a temporary sign, or a limited duration sign regulation.
The third project is by-laws for the Planning Commission. We have never had these, but they may be useful in addressing possible conflicts of interest and generally how to conduct themselves.
PUBLIC COMMENT: None.
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ADJOURNMENT: There being no further business to discuss, Dr. Scarpello motioned, with Ms. Ferleger seconding, to adjourn the meeting.
VOTE ON MOTION ALL YES MOTION CARRIED
Respectfully submitted,
______Jesse Conte, Recording Secretary Attest:
______Rebecca Gushue, Chairperson
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DATE: June 5, 2019 TO: Board of Commissioners Upper Dublin Township FROM: Upper Dublin Township Environmental Protection Advisory Board (EPAB), Cheryl Knight, Chair SUBJECT: Recommendation to Adopt a Resolution to Transition to Clean and Renewable Energy Sources
Support for a transition to 100% renewable energy is building in southeastern Pennsylvania and throughout the country. In light of the strong consensus among climate scientists that global climate change is real, current, manmade, and threatening to many communities, municipalities are taking the lead and moving to transition to 100% renewable energy. Many of our neighboring communities have already expressed their support by adopting the “Ready for 100” program. The EPAB recommends that Upper Dublin Township also adopt this program. The EPAB recommends that the Board of Commissioners take the following actions to reduce greenhouse gas emissions in the Township and prepare for the effects of climate change that will be experienced by the Township’s residents in the months and years to come. 1. Adopt a resolution with the goal of transitioning the Township and the community to 100% clean and renewable electricity by 2035, and to 100% clean and renewable heating and transportation by 2050. 2. In coalition with other townships and boroughs in Montgomery County, commission the development of a Climate Action Plan and/or an Energy Transition Plan to achieve the goal of 100% renewable energy in the agreed-upon timeframe using an open and inclusive process. 3. We applaud the Commissioners’ prior drafting and adoption of a township Formatted: Font color: Auto Comprehensive Plan to identify and address issues critical to the future vitality of the Formatted: Font color: Auto township. Upon its completion, we urge the integration of the Climate Action Plan and/or Energy Transition Plan into Upper Dublin’s Comprehensive Plan. 4. Review the Township’s processes, procedures, and programs for compatibility and compliance with the Climate Action and/or Energy Transition Plan, and change as needed to ensure compliance. 5. Assist in the education of the community regarding steps that residents and business partners can take to reduce their carbon footprints. The following white paper includes further detail on the Ready for 100 program, on the climate change reality that necessitates the above actions, on activities currently underway in Montgomery County and southeastern Pennsylvania to enable a transition to 100% renewable energy.
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9 What is “Ready for 100”? Ready for 100 (RF100) is a campaign launched nationally by the Sierra Club that encourages volunteers to advocate at the municipal level, and municipalities to adopt, an equitable and socially inclusive transition to 100% clean, renewable (i.e., at this time largely wind- and solar- based) energy. To date, over 120 municipalities nationwide have adopted RF100 resolutions, as well as five states plus Washington, DC, and Puerto Rico. Seventeen of these municipalities are in Southeast Pennsylvania, and eight are in Montgomery County (see https://www.sierraclub.org/pennsylvania/southeastern/ready‐for‐100‐montgomery‐county). A key element of these resolutions is a commitment to use of 100% renewable energy for electricity by 2035, and for all energy sectors by 2050. The Sierra Club’s guidelines for RF100 resolutions are attached, as well as a template resolution that can be modified as needed to fit Upper Dublin Township.
More information on RF100 can be found here.
PASSED RENEWABLE 13% of ENERGY RESOLUTIONS Population AS OF 6/5/2019
Ambler Borough
Upper Dublin Bridgeport Borough Formatted: Font: Bold, Font color: Accent 1 Township Formatted: Centered Cheltenham Township
Narberth Borough
Norristown Borough Formatted: Centered
Plymouth Township
Springfield Township
Whitemarsh Township
What happens after passing a renewable energy resolution? The adoption of an RF100 resolution is just the first step in the process. In our internal evaluation of the RF100 program, with an eye toward the possibility of recommending it to you, we have been particularly interested in providing you with identifiable action items that could comprise the move toward all-renewable energy. As a group we decided to provide you with Formatted: Font color: Auto concrete details of implementation in order to ensure that, should you enact a resolution
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10 supporting the RF100 program or any other move toward renewable energy, you would be aware of actual, actionable steps that can be taken beyond simply adopting a resolution that stated your hopeful aspirations. We have learned that once a commitment has been made, an energy transition planning process must be undertaken to determine the steps needed for a particular municipality to reach its clean energy goals. For example, in Chester County, several municipalities adopted resolutions in 2017. In 2018, after considerable discussions with a variety of stakeholders, the West Chester Area Council of Governments issued a Request for Proposals to commission an energy plan for six contiguous municipalities. The Cadmus Group, a strategic and technical consultancy, was selected, from the nine proposals that were received, to draft an energy transition plan for the Chester County communities. This work is currently underway and serves as a potential model for Montgomery County communities. A roadmap developed for Cadmus by the Meister Consultants Group as part of this process, outlines a stepwise path for communities transitioning to 100% renewable energy. We are particularly impressed by this roadmap because of the specific action items it identifies, especially in its Section 2. The entire roadmap is attached for your reference, and we Formatted: Font: Bold, Font color: Auto encourage you to consult it in order to learn of approaches and specific action items in the progress toward a renewable energy platform. For example, the roadmap delineates a municipality’s efforts into strategies oriented toward the municipality itself, toward consumers, and toward utilities. Under the ‘consumers’ section, the roadmap lists these concrete efforts that can be undertaken: 1 Engage the community in setting energy goals. 2 Establish local incentives for on-site renewable energy (e.g., solar rebates). 3 Establish city mandates for on-site renewable energy (e.g., solar mandate). 4 Host a renewable energy bulk purchasing program (e.g., Solarize). 5 Reduce permitting, zoning, inspection time and costs for renewable energy. 6 Lease public land for renewable energy. 7 Establish rates or tariffs that compensate energy generated on-site (e.g., net-metering). 8 Establish a community-shared renewable energy program (e.g., community solar). 9 Establish a community choice aggregation program (municipal aggregation). These actions must be considered within the context of the entire roadmap report for full comprehension. However, one can appreciate this listing of specific steps, actions beyond a general aspiration for renewable energy, that can be undertaken to help ensure success in the effort to convert the township to renewable energy Another model to consider is that of the Phoenixville Regional Planning Commission, which is facilitating collaboration on multi-municipality comprehensive plan, putting energy planning in
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11 context with land planning, water resource protection, traffic studies, expected population growth, etc. With at least 15 municipalities in Montgomery County having expressed interest in adopting RF100 resolutions, at least eight of which have adopted resolutions already, RF100 communities in Montgomery County are coordinating to develop a mechanism to share resources for energy transition planning. Several local resolutions have committed to complete their energy transition plan by Earth Day 2020. This local nucleus of interested, energized, and committed municipalities provides a ready network with which the township could effectively partner. What will a transition to 100% renewable energy look like in Upper Dublin? The energy transition planning process will help to define the policy needs, programs, technologies, financial supports, and other elements that are needed to achieve the goal. Below are listed some of the anticipated elements of a transition to 100% renewable energy. We appreciate the efforts to date of Township managers and staff to increase the energy efficiency of Township operations. A further step in this effort is to conduct formal energy audits of Township buildings and operations to identify and prioritize opportunities for further efficiency improvements. Analysis of Township and community-wide energy use to identify and prioritize opportunities for efficiency improvements. New and/or enhanced Township policies/ordinances requiring efficiency and renewable energy in new buildings and major renovations. New and/or enhanced Township policies/ordinances limiting emissions from mobile sources and off-road equipment. Cooperation/coordination with neighboring townships to facilitate aggregated purchasing of renewable energy. Programs to educate residents and businesses about energy efficiency and renewable energy. Grant-writing to help fund renewable energy installations. Why should Upper Dublin Township make a commitment to 100% renewable energy? There are many reasons for Upper Dublin Township to commit to 100% renewable energy. Here are a few: The need to address climate change is urgent. In its 2018 special report, Global Warming of 1.5°C, the United Nations Intergovernmental Panel on Climate Change predicted that global warming is likely to reach 1.5°C above preindustrial levels between 2030 and 2052 if it continues to increase at the current rate. With a high confidence level, it states “climate-related risks for natural and human systems are higher for global warming of 1.5°C than at present, but lower than at 2°C. These risks depend on the magnitude and rate of warming, geographic location, levels of development and vulnerability, and on the choices and implementation of adaptation and mitigation options.”
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12 The figure below is an overview of expected changes in weather and related events across the United States. It shows only general climate changes; it is silent on the stresses to humans, systems, and communities, and on the losses of life and property. By adopting RF100, the Board of Commissioners has an opportunity to break the township’s fossil Formatted: Font color: Auto fuel dependence and the attendant contributions to what qualified observers agree will be an untenable future. A renewable energy resolution is a chance to exercise foresighted leadership in building a better community, both locally and globally.
Renewable energy is becoming cost-competitive with fossil fuels. Future prices of fossil fuels are not known; prices of oil and gas have historically been volatile. In contrast, as shown below, the costs of solar and wind energy have been declining rapidly and are now competitive with fossil fuels in many areas. It is not unreasonable to expect further reductions. In addition, renewable energy lacks the secondary costs of fossil fuels – such as international political instability and military action to secure supplies and supply lines.
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13 100x Price Decline
Solar Panel Price Trends Wind Cost Trends
It will bring economic benefits to the Township. The momentum and support for renewable energy that is building in Southeastern Pennsylvania and the surrounding region will translate into increased demand for renewable energy, which is likely to bring both new jobs and further reductions in renewable energy costs with aggregated purchasing. It will position Upper Dublin Township as a clean energy leader. By adopting a commitment to transition to 100% renewable energy, Upper Dublin will signal to residents, renewable energy suppliers, neighboring communities, and [Pennsylvania and U.S.] lawmakers that we are ready to do what is necessary to address climate change and reap the benefits of a clean energy economy. It also establishes the township as a responsive, forward-looking, and desirable place to work and reside. Residents are supportive. There is already considerable interest in RF100 among Upper Dublin Township residents. The EPAB is working with several Township residents who are championing this worthwhile cause and energetically supporting its adoption. The Formatted: Font color: Auto group of interested Township residents has grown steadily over the past few months, and a number of them have attended EPAB meetings in support of RF100. What will it cost? The costs of commissioning an energy transition plan are expected to be in the range of $50,000 to $100,000, but it is expected that this cost will be shared among a number of Montgomery County municipalities. Buncolm County, North Carolina (200,000 residents), spent $100,000 for a plan to get to 100% renewable energy. Greater West Chester, Pennsylvania (100,000 residents), spent $75,000 to commission an energy transition plan encompassing 6 municipalities. The cost was split based on relative population of the participating townships, with the average being about $12,500. The expected cost for Upper Dublin Township of $10,000 to $15,000 could easily be offset by improving energy efficiency at township facilities (lights, insulation, fuel efficient vehicles) or through aggregated purchasing of electricity.
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14 The community-wide costs of achieving the goal of 100% renewable energy cannot be known until energy transition planning is undertaken. However, recent trends in renewable energy costs and financing are very favorable. In addition, much of the cost of installing the needed renewable energy infrastructure can be offset by efficiency improvements, many of which are relatively low-cost, with short payback periods, long-term benefits, and the prospect of adding many local jobs. We encourage you also to consider the costs and risks of a “business as usual” approach. By continuing to rely on fossil fuels for electricity, heat, and transportation energy, the township implicitly accepts the risks of unpredictable oil and gas prices, unstable power grids, increased costs of flood insurance and storm recovery, and increased climate-change related health care costs. In contrast, renewable energy, delivered reliably from a distributed and secure power system, offers stable long-term costs, protecting the financial position of the Township and its residents. In a broader sense, failure to act now will ensure the increases in damage to human life and prosperity that some believe are already evident. From both a cost viewpoint and a human welfare perspective, we believe it prudent to act now in order to minimize the various negative impacts of continued reliance on fossil energy. Implementation of the RF100 program is one way to take such action. Conclusion The EPAB recommends implementing the RF100 program to reduce Upper Dublin Township’s contribution to and impacts of climate change. We believe that the timeframe presented in the RF100 program—100% renewable electricity by 2035 and 100% renewable heating and transportation by 2050—are achievable and are consistent with current recommendations by climate scientists. At least eight municipalities in Montgomery County have already adopted resolutions to transition to 100% renewable energy. The Montgomery County Commissioners recently announced a wind energy purchase that will power all of the county’s electrical accounts with emission-free renewable power, and made a commitment to sustainable operations. With support for RF100 well-established and growing in southeastern Pennsylvania, adopting and implementing the RF100 program will position Upper Dublin Township as a clean-energy leader and establish the township as a forward-looking and desirable place to work and reside. Respectfully, Austin Faberman Michael Haas Cheryl Knight Edward Landau Eric Lindhult Marc Osias
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A Vision for a 100% Clean Renewable Energy Future
WHEREAS, Climate change is a global long-term threat to civilization and Earth’s living ecosystems;
WHEREAS, More frequent and extreme weather events will become commonplace;
WHEREAS, A major contributor to climate change is the continued use of fossil fuels by individuals, businesses and government agencies;
WHEREAS, The impacts of Climate Change will stress our infrastructure, emergency and social services; threaten our access to food, water and energy supplies; heighten the disruption of services and commerce; and negatively affect the quality of life and human health;
WHEREAS, The 2015 United Nations Climate Change Conference in Paris resulted in a consensus among all 195 countries to limit the increase in global average temperatures to well below 2 degrees celsius, ensure that greenhouse gas emissions will not exceed sinks (total carbon capture) by the second half of this century, and become carbon neutral between 2050 and 2100;
WHEREAS, In January 2019, Governor Tom Wolf has issued an executive order stating, “the Commonwealth will work to achieve a 26 percent reduction of greenhouse gas emissions by 2025 and an 80 percent reduction by 2050”;
WHEREAS, The municipalities of Springfield, Cheltenham, Plymouth and Whitemarsh Townships, Ambler, Bridgeport and Norristown Boroughs in Montgomery County and Phoenixville, West Chester, Downingtown and others in Chester County and Delaware County have stepped up as regional leaders in setting goals for the transition to renewable energy in their communities;
WHEREAS,
WHEREAS,
WHEREAS, The best strategy for achieving a cost effective, even cost saving, energy source transition is through collaboration with other Montgomery County energy leaders and participation in acquiring aggregated procurement contracts – Power Purchase Agreements (PPAs) for regional wind and solar energy; to this end,
AND WHEREAS, A renewable energy initiative can produce energy cost savings for residents and local businesses while stimulating new economic activity and local jobs, all while simultaneously mitigating the risks from 16 climate change for everyone;
BE IT RESOLVED THAT:
●
● The
● Renewable energy will be defined as carbon-free and pollution-free energy generated sustainably from renewable sources such as wind, solar, small hydro, tidal, fuel cells and geothermal;
● Locally produced and distributed energy is prioritized whenever feasible for the many advantages it provides to the community;
●
● All
●
●
●
●
ADOPTED, this
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Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy
Table of Contents
Introduction What is a 100% Renewable Energy Community? Guidelines for 100% Commitments Acknowledgements Appendix: Examples of 100% Renewable Energy Commitments City Council Resolutions Climate and Energy Plans
Introduction
The time for 100% clean, renewable energy has come. For too long, low income communities and people of color have borne the burdens of dirty energy in our communities. Rural and suburban workers are witnessing closure of coal plants due to market trends. And from mega-storms to drought and wildfires, communities across the country are beginning to experience the severe impacts of climate change. Local municipal leadership is necessary to shepherd the U.S. towards climate change mitigation and resilience. Numerous studies show that it is possible to eliminate fossil fuels around the globe by the year 2050. Studies of the U.S. align with this global finding and show it is technologically and economically possible to achieve 100% clean energy across the country by 2050 or even sooner. The challenge of this century is to transition to 100% clean, renewable energy in the United States and across the globe. Converting our energy sources to 100% renewable, sustainable energy is critical step in achieving the Greenhouse Gas reductions necessary to avoid the worst impacts of climate change. While not a simple transition, it is one we must pursue now in order to accomplish this transition in time.
What is a 100% Renewable Energy Community?
Local or regional governments can show leadership in our transition to 100% renewable energy by setting a target to move the entire community to 100% clean, renewable energy in all energy use sectors - electricity, transportation, and heating and cooling - and actively pursue a path towards implementation. A number of communities have already transitioned to 100% renewable electricity, and many others have adopted strategies to move towards meeting 100% of their electricity, transportation, and heating and cooling needs from renewable energy sources. 18 Updated 12/1/2017 1
Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy
A strong commitment to 100% clean, renewable energy is one that commits to transitioning the entire community to 100% renewable energy (in other words, it covers all energy used within a city-limits). A 100% goal is fully achieved when the amount of energy generated from renewable energy sources in the community (or brought into it) equals or exceeds 100% of the annual energy consumed within that community.
The outcomes of the 100% commitment greatly depend on who within your community signs on. A statement or proclamation in support of 100% clean, renewable energy by a city leader can mark the beginning of a city’s commitment to craft a strategy that moves it off of fossil fuels. It serves as a call to action to motivate local stakeholders, begin a conversation, and build a common vision of the city’s energy future. Following a statement or proclamation, the city should adopt a binding commitment that includes the guidelines outlined below. To date, cities have adopted this goal through a variety of pathways. Following a Mayoral Commitment, San Francisco, CA integrated a goal of 100% RE into their climate action plan; Pueblo, CO and Moab, UT adopted city council resolutions; and in Burlington, where the community is served by a municipal utility, the city integrated the goal into the utility's integrated resource plan.
Guidelines for 100% Commitments
As a member of the Global 100% Renewable Energy Campaign, our guidelines and recommended actions for achieving a 100% renewable energy align with international criteria, while also taking into consideration examples of community commitments adopted to-date, Sierra Club energy policies, and local and regional factors. Summary of Guidelines A community-wide commitment to 100% renewable energy should include the following core elements: 1. Efficiency First: Reducing the amount of energy used to power our economy and scaling up energy efficiency is essential to empowering a 100% clean energy future for all, and will make reaching that target easier and more cost effective. 2. Equitable and Just: A commitment to achieving equity, affordability, and access for all members of the community in the transition to 100% renewable energy; 3. Clean and Renewable: A clear definition of clean and renewable resources; and 4. 100% Renewable Electricity by 2035: A full transition of the electricity sector to clean, renewable energy;
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Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy
5. All Energy-Use Sectors by 2050: A commitment to transition other energy sectors to 100% including transportation and heating and cooling; 6. Inclusive and Transparent Planning and Implementation: A commitment to a transparent and inclusive process for planning and implementation, ensuring that the public has an opportunity to participate. 7. Local Generation and Job Creation: A goal for how much of the community’s energy needs will be met by local, distributed generation; 8. Collaborate with Neighboring Communities: A commitment to work with surrounding communities in achieving aligned clean energy and equity goals; 9. Advocate: A commitment to advocate for policies or regulations at the state, regional and/or federal level that aid the city in their transition, and negotiate with existing utility service providers. 10. Demonstrate Immediate Progress: Build, support or incentivize clean energy projects in your community, and prioritize projects that benefit low-income residents and/or communities impacted by fossil fuels.
Guideline 1: Efficiency First Reducing the amount of energy used to power our economy and scaling up energy efficiency is essential to empowering a 100% clean energy future for all, and will make reaching that target easier and more cost effective. Determining the potential for energy efficiency and energy savings are a critical first step to implementing a 100% clean energy strategy. Before determining how much renewable energy is needed, first assess how the present energy demand can be reduced significantly. Strategies to enhance energy efficiency and energy savings technologically include weatherization, cogeneration, district heating and cooling, decentralized electricity generation and smart grids/microgrids, the use of industrial waste heat, building controls, automated lighting, and solar-powered hot water heaters and heat pumps. Cities should also pursue non-technological measures that enable behavior shifts (e.g. electricity saving campaigns) and creating a culture of energy saving behavior.
For research, policy analysis, and expert guidance on energy efficiency go to the American Council for an Energy-Efficient Economy (ACEEE), which also provides a toolkit for local governments on how to boost energy efficiency.
Guideline 2: Equitable and Just The transition to 100% renewable energy can bring a wealth of community benefits, particularly to those who are most vulnerable. Transitioning our energy systems entirely to renewable energy presents an unprecedented opportunity to address inequity and lift up those most 20 Updated 12/1/2017 3
Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy impacted by climate change and fossil fuel extraction, infrastructure, and combustion. The transition to renewable energy can be a vehicle to decentralize and democratize our energy infrastructure, reduce and stabilize costs, create jobs, improve grid reliability, and distribute the economic benefits of generating energy more equitably. For example, cities have been able to reduce electricity cost to consumers by integrating solar panels into their electrical generation mix. In order to achieve these benefits, we must be intentional and steadfast in integrating solutions to these challenges into the transition plan.
A transition to 100% renewable energy should include policy mechanisms and financial incentives that enable the following principles: ● Create Quality Careers for all people employed in clean energy industries. Local clean energy transitions must create local jobs that are self-determined by community members and community needs. Jobs created from cities transitioning to clean energy should be quality, family-supporting or unionized jobs that prioritize employing the often non-traditional workers in clean energy programs, and people from traditionally marginalized backgrounds. ● Provide a Just Transition that protects the livelihoods and well-being of fossil fuel workers and communities. Communities whose primary economic driver has been the fossil fuel industry, that have borne the brunt of the pollution related to fossil fuel production and/or workers currently employed by the fossil fuel industry - deserve protection, support and right to first access of new economic opportunity during a nationwide energy and economic transition to 100% renewables. Cities should address the needs of workers by engaging community-leadership and voices throughout the design and implementation of the transition plan. ● Ensure Equitable Access to clean-energy-related economic opportunities (including careers, wealth, and clean energy infrastructure) for vulnerable communities and individuals especially working class and low-income people, people of color, women, and youth. Regulatory models should prioritize ownership and benefits of the new energy system for people of identities that have been historically marginalized by the fossil-fuel economy. ● Provide Affordable Clean Energy Options, especially for members of vulnerable communities. A city transition plan should prioritize financing models that enable all income brackets and business sizes to choose 100% clean energy renewable energy. The transition plan should secure community benefits and cost affordability of utility-scale renewable energy alongside growth in locally-owned, affordable options for distributed energy. Public financing programs should redirect money saved from energy efficiency measures to fund more community-owned clean energy and transportation projects, especially in communities with greater financial need. 21 Updated 12/1/2017 4
Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy
Guideline 3: Clean and Renewable Clean, renewable energy resources include carbon and pollution-free energy sustainably generated from renewable sources including wind, solar, tidal, and geothermal. Low-impact, small hydroelectric and some forms of biomass may be included after being evaluated for sustainability and environmental justice implications. Nuclear, natural gas, coal, oil based, or any other forms of carbon-based energy production are not included as clean or renewable sources of energy.1
Existing renewable energy sources, including hydroelectric, currently in your community’s energy resource mix can contribute to a community's 100% renewable energy goals. However, community commitments to 100% are intended to drive investments in new renewable energy generation. A commitment to 100% should include a commitment to replace fossil fuels and nuclear energy currently in use, and meet any projected growth in energy demand with energy efficiency and/or new clean and renewable resources.
Guideline 4: 100% Renewable Electricity by 2035 Cities commitments to 100% renewable energy are already driving new renewable energy investments, and are critical to catalying the momentum we need in order to transition the U.S. to 100% renewable energy in all energy sectors by 2050. The following are examples of the investment routes that other cities that pursued to achieve their goal of 100% renewable electricity. In order to achieve 100%, it is likely that your community will pursue a mix of the options outlined, and may also help to develop investment and partnership models not yet in practice.
● Direct Investment in local, distributed solar and wind: There are a range of ways the city can meet its 100% goal through local, distributed wind or solar: ○ Power at least a portion of municipal operations with on-site generation ○ Adopt city policies that enable residents and small businesses to install on-site renewable projects and/or invest in community solar or wind projects ○ Incentivize commercial, industrial, and other large-energy consumers in utilizing roof and parking-lot space for on-site solar and wind through building codes, simple permit processes and/or local tax incentives. ○ Participate in cooperative buying pools with other municipalities or large energy customers to aggregate your buying power.
1 This is a summary of the Sierra Club’s energy policy. The full policy can be found at: https://www.sierraclub.org/sites/www.sierraclub.org/files/Energy-Resources-policy_0.pdf 22 Updated 12/1/2017 5
Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy
Check out the US Department of Energy SolSmart Program for more information and examples of case studies of cities like Hartford, CT, Columbia, MO, and Milwaukee, WI, just a few of the cities that have been designated as gold leaders in making it faster, cheaper, and easier to go solar.
● Power Purchase Agreements (PPA) - PPAs offer an avenue for communities to build commercial or utility-scale renewable energy projects to power municipal operations, hospitals, public schools and other energy users by contracting directly with an independent electricity generator or system owner to finance and implement renewable energy installations. Benefits of PPAs include the delivery of predictable, lower cost energy, long-term pricing, renewable energy certificates and tax credits, without large upfront costs. See NREL and SEIA for more details on PPAs.
● Work with your Current Utilit(ies): Most electric utilities in the U.S have invested in some level of renewable energy in their resource mix, and many are mandated by state renewable portfolio standard to source a percentage of their energy portfolio to renewable resources. Community-wide, you will likely represent a significant percentage of their total customers and load, and therefore have leverage to push the utility to pursue more ambitious renewable energy investment plans. Opportunities where cities can pursue the conversation on 100% renewable energy include the utility’s integrated resource planning process, public utility commission dockets on utility rates, net metering, and via the franchise agreement between the community and the utility which grants the utility right-of-way for transmission and distribution infrastructure. Shortly following Salt Lake City’s commitment to 100% Renewable Energy, the city announced a new agreement with their utility, Rocky Mountain Power, in which the utility committed to working with the city to achieve their energy goals.
● Existing Cooperative and Municipal Utilities: Many of the communities that have successfully transitioned to renewable electricity - including Burlington, VT, Aspen, CO and Georgetown, TX - are served by a municipal or cooperative electric utility that owns the power generation sources or engage in Power Purchase Agreements for their electricity customers. In places where a local community is already served by a municipal or cooperative utility, the local government can direct the utility to increase their use of renewable energy sources and implement programs that incentivize residential and commercial action on energy efficiency, rooftop solar, and electric vehicle infrastructure.
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Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy
● Community Choice Aggregation (CCA) - Community Choice Aggregation allows local governments to pool (or aggregate) their electricity load in order to purchase and/or develop power on behalf of their residents, businesses, and municipal accounts. CCA is an energy supply model that works in partnership with the region’s existing utility, which continues to deliver power, maintain the grid, provide consolidated billing and other customer services. Historically, local governments have pursued CCA’s in order to secure lower electricity rates for their residents. Recently in California CCA programs have launched that offer both lower rates and a cleaner electricity mix than what is offered by the existing utility.2 CCA’s are currently legal in CA, NJ, IL, MA, OH, RI, NY and under consideration in MN, DE, and UT. For more detail check out the Local Energy Aggregation Network.
● Municipalization: Municipalization is when a city or county takes control of its electric or gas generation, transmission and/or distribution from an Investor Owned Utility (IOU) or Rural Electric Cooperative (Co-op). In addition to enabling a community to source its energy needs from renewable energy, forming a municipal utility can lower rates, improve reliability, and create more community control over how the utility is operated. In recent years, Boulder, CO, Thurston County, WA, and Daytona Beach, FL have all pursued municipalization. For more detail check out the Community Power Network.
A Note on Unbundled Renewable Energy Credits (RECs). We do not recommend this as an investment primarily because RECs do not provide a potential for energy-costs savings, local job creation, nor a guarantee of new renewable energy online. However, if a city does purchase RECs to offset the current electricity mix, you should ensure that the RECs meet the EPA’s guidance on purchasing RECs and are from projects that create “additionality,” adding new renewable generation that did not exist prior to the commitment. Where other investment pathways are available, we advise that the city to phase down the purchase of RECs, and replace them with direct investments in renewable energy projects as quickly as possible.
Guideline 5: All Energy-Use Sectors - Electricity, Heating and Cooling and Transportation - by 2050 A community’s 100% commitment should aspire to transition all energy sectors, including electricity, heating and cooling, and transportation. It is likely your community will be able to transition one sector faster than others, though the vision for the transition to 100% should encompass all types energy use in the city. One recommended approach is to set a goal of
2 http://www.ebce.org/app_pages/view/41 24 Updated 12/1/2017 7
Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy transitioning all energy sectors by 2050, with shorter-term targets for the sectors that can be transitioned sooner. If it is not feasible to set a goal for all energy sectors, begin by establishing a goal to transition the electricity sector.
Transportation For the transportation sector, we recommend that the community pursue the following actions:
● Incentivize use of public transit, carpooling, walking and biking: Establish policies that reduce vehicle miles traveled by shifting passengers and freight to more efficient modes of travel, including transit, walking and biking, and creating an integrated transportation system. ● Infrastructure: Establish policies that build infrastructure for electric cars, buses, and trucks. ● Commit to 100% Electric Vehicles for Municipal Fleets: Establish vehicle fleet mandates that eventually require 100% of municipal vehicles (cars, garbage trucks, etc.) ● Commit to 100% Electric Vehicles for Public Transportation: Establish vehicle fleet mandates that eventually require 100% for transit vehicles (buses and non-revenue fleet cars) are electric, with interim targets created. ● Public Education: Promote a widespread switch among the public to electric vehicles through programs such as educational outreach, excise tax waivers, rebates, EV car-sharing programs, etc. ● Budget Prioritization - Prioritize smart land-use planning, public transportation and clean, alternative modes of travel in local transportation budgets ● Reallocate funds to support integrated multi-modal public transportation infrastructure and clean modes of transportation (high capacity vehicles, rail, light rail and subway systems, walking, biking, and bus, as appropriate), as well as judiciously prioritized road and infrastructure repair.
Buildings: Heating and Cooling For the buildings sector, we recommend that the community pursue the following actions:
● Reach building codes: Establish policies that require renewable all-electric water and space heating in new construction and major retrofits. (We have a draft ordinance on renewable water heating that could be expanded to all thermal loads. Do you want this?) ● Infrastructure: Establish policies that discourage the expansion of gas services in new construction. Require "electric-ready" homes and buildings at the point of sale. Electric-ready requirements can facilitate future electrification by removing barriers and reducing costs for transitioning the building stock to clean energy. 25 Updated 12/1/2017 8
Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy
● Incentivize purchase of super-efficient electric technologies, including electric heat pump space heaters, electric heat pump water heaters, electric induction stoves/convection ovens, and electric heat pump clothes dryers. Instant rebates lower the upfront costs of switching from fossil fuels to all-electric appliances. City taxes for expanding gas infrastructure (like hook ups to the distribution system) can create a new revenue stream to fund energy efficiency and incentives for electrification. ● Workforce development: Create or support workforce development, training, and certification programs for plumbers, electricians, HVAC installers, contractors, architects, and building and safety staff. Offer upstream incentives to encourage contractors, plumbers, and electricians to support fuel-switching to high-efficiency heat pump appliances. The Northwest Energy Efficiency Alliance has excellent guidance and studies on upstream incentives and how they can support market transformation. ● Public education: Promote a widespread switch from fossil fuels to electric heating and cooking through public education and communication efforts to demonstrate the economic, health, safety and climate benefits of all-electric homes. ● Financing: Establish innovative financing programs (like on-bill financing and PACE) to lower the upfront costs of installing new high-efficiency electric appliances ● Bulk-buy programs: Partner with other cities to secure group discounts on purchase and installation high efficiency electric appliances. These programs often lead to increased consumer uptake because of the lower costs and 3rd party vetting of participating companies. ● Permitting: Update permit protocol to expedite fuel-switching/electrification while maintaining needed safety standards ● Commit to 100% electric municipal buildings: Establish a building mandate that requires 100% of municipal buildings to be all-electric and powered by rooftop or community solar ● All-electric pilot projects: Work with local CCE or municipal utility to establish all-electric residential and commercial pilot and demonstration projects
Useful resources: ● RAP webinar on Environmentally Beneficial Electrification ● City of Palo Alto Heat Pump Water Heater Pilot Guideline 6: Inclusive and Transparent Planning and Implementation In order to successfully achieve an equitable and just transition to 100% clean, renewable energy, it’s critical to develop and implement the commitment through inclusive and transparent processes. Individual citizens, local community organizations, public institutions, and small and 26 Updated 12/1/2017 9
Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy large businesses must work in tandem to form the new system. Realizing just solutions requires inclusive policy processes and soliciting input from all of a community's diverse stakeholders on their needs and ideas. It also requires assessing and defining those populations most likely to be impacted by environmental problems and related climate and energy policies. This involves prioritizing a range of public participation opportunities and listening to and learning from people under-represented in decision-making processes and those who experience forms of discrimination and inequality.
Cities have more authority over their community’s energy resources than you may realize. Each city should do an individual assessment of the options currently available based on regional and state laws.
As a first step in your roadmap, we recommend that you assess your baseline energy use, greenhouse gas emissions, and socioeconomic factors. ● Energy: Important indicators to track for energy include total annual electricity consumption, total greenhouse gas emissions, the utility's current electricity resource mix, percentage of rooftops with solar installed, and the average cost of electricity per ratepayer. There are a number of energy and GHG baseline planning tools including ICLEI, NREL, and Project Sunroof. ● Equity: Socioeconomic indicators that you can track include the number of local clean energy jobs created, money saved from the avoidance of energy imports, economic benefits to local businesses and industries, decrease in energy costs, especially for low- and moderate-income households, avoided pollution and related health costs, and ensuring that a minimum percentage of all investments in clean energy infrastructure benefits disadvantaged communities, with a minimum of projects located directly in those communities. Meister Consulting has develop a framework for integrated equity into a city’s implementation plan and summary report of how cities are integrating equity into their planning and implementation. The UC Berkeley Labor Center and the Energy Democracy Alliance both have detailed guidance on this topic. ● Policy and Regulatory Landscape: It is also critical to assess the local, state and federal policy landscape on energy - what are the current laws in place to enable the transition, what successful policies have other local or state governments implemented. The State Policy Opportunity Tracker and the Database for State Incentives for Renewable Energy are both excellent resources to determine what existing energy laws and regulations are in place in your state.
Track and assess your progress towards 100% and evaluate ways to improve, refine and build upon the initial projects pursued. There are a number of well respected tracking tools for cities 27 Updated 12/1/2017 10
Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy that are implementing climate and energy solutions including Star Communities, ICLEI’s HeatPlus, and CDP. Guideline 7: Develop an Ambitious Target for Local and Distributed Energy There is a tremendous amount of untapped renewable energy potential on rooftops and underutilized open space within the city-limits of our communities. Local, distributed energy provides a number of benefits to the community. It increases grid security and reliability, grows the local economy, creates new jobs, and provides an opportunity to increase local ownership of these assets and spreads the economic opportunities of transition to clean energy across the community. A community’s 100% commitment should incentivize a diversity of local investment and procurement options, and be coupled with standards for local hiring, workforce development, and options community ownership.
Guideline 8: Collaborate with Neighboring Communities The path to 100% is still being built. We do not have all the answers to how we will accomplish this transition today. In fact, a number of the solutions that will enable this transition have yet to be developed or refined. Further each community's unique geography, history, demographics, and socio-economic characteristics will shape and influence the solutions each city pursues.
Cooperation among cities, towns, and rural areas can provide advantages and efficiencies for all parties since most cities cannot meet this transition within their city boundaries, and rural communities. ICLEI’s 100% Renewable Energy Cities & Regions Network provides guidance, tools and a network of experts that can aid you in developing a plan to transition your community. USDN is a network of Sustainability Directors in U.S. Cities. Over 2500 cities from across the globe are also sharing their progress and lessons learned through the UNFCCC’s Global Climate Action tracker. Guideline 9: Advocate A transition that achieves all of the principles and guidelines outlined in this document will require each community to become strong advocates for policies at the state and federal level that encourage rapid deployment of renewable energy. It will also be critical to engage in ongoing dialogue and negotiations with the companies that currently provide electricity, transportation, and heating services for your community.
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Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy
Guideline 10: Demonstrate Immediate Progress Build, support or incentivize clean energy projects in your community, and prioritize projects that benefit low-income residents and/or communities impacted by fossil fuels. Public buildings can also serve as locations for clean energy projects. Its critical that these projects are built at-scale, and not just small demonstration projects that generate a small portion of the building’s energy needs.
Another excellent action to demonstrate immediate progress is to transition municipal electricity to 100%. A number of communities have set (or achieved) goals to supply all the energy used by their municipal facilities or operations with renewable electricity. Powering municipal operations with 100% renewable energy can be an important milestone on a city’s path to 100% clean energy, but a municipal target alone does not achieve the scale necessary to address the social and environmental threats facing us.
Acknowledgements
Thank you to the following organizations for their review and input on this document: Center for Resource Solutions, Center for Social Inclusion, ICLEI, Institute for Sustainable Communities, Meister Consulting Group, and Renewable Cities.
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Guidelines for Community Commitments to 100% Renewable Energy Creating an Equitable and Just Transition to 100% Clean, Renewable Energy
Appendix: Examples of 100% Renewable Energy Commitments
City Council Resolutions 1. Atlanta, GA 2. Orlando, FL 3. Portland, OR 4. Pueblo, CO 5. St Louis, MO 6. Sample Resolutions
Climate and Energy Plans A roadmap can help your community to define concrete, funded activities with assigned accountability for research, development and implementation. It is critical to underpin the city’s transition roadmap with plausible policy measures that integrate this commitment with existing fiscal, energy, economic and infrastructure policies. Below are some examples of of city climate and energy plans that include roadmaps to achieving 100% renewable energy: ● San Francisco, CA: Renewable Energy Task Force Recommendations Report ● Greensburg, Kansas: Sustainable Comprehensive Master Plan ● Burlington, VT: Climate Action Plan ● San Diego, CA: Climate Action Plan ● Salt Lake City: Communities Renewable Energy Study ● Denver, CO: 80x50 Report ● Long Island, NY: Clean Electricity Vision ● Vancouver, British Columbia: 100% Strategy
30 Updated 12/1/2017 13 PATHWAYS TO 100 An Energy Supply Transformation Primer for U.S. Cities
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ACKNOWLEDGMENTS
Meister Consultants Group, Inc. (MCG) developed this resource in partnership with the Innovation Network for Communities (INC) and with input MCG is a Boston-based sustainability consulting from the Carbon Neutral Cities Alliance (CNCA), firm specializing in renewable energy policy, and the Urban Sustainability Directors Network strategy development, and climate change (USDN). This work was made possible through planning. Since 2008, MCG has supported local- the generous support of the Energy Foundation level renewable energy policy, procurement, and The Kresge Foundation. training, and engagement initiatives in over 200 communities across all 50 states, and has assisted Lead authors include Chad Laurent, Jon Crowe, state and national governments around the world and Rebecca Coombs at MCG, with supporting with development of clean energy initiatives. review and advisory support from John Cleveland (INC); Johanna Partin (CNCA); Garrett Fitzgerald (USDN); Jessica Boehland (Kresge Foundation); Steve Ferrey (Suffolk University Law School); Eileen V. Quigley (Clean Energy Transition); Diane Munns (Environmental Defense Fund); and Kassie Rohrbach (Sierra Club). Supporting research, The Innovation Network for Communities (INC) is review, and design provided by Nathan Grady; a national non-profit organization focused on Sam Mardell; Julie Curti; William Sloan; Kalee helping cities achieve carbon neutrality and long- Whitehouse; Kathryn Wright; Ryan Cook; Sasha term resilience to climate disruptions. Shyduroff; and Erin Camp (MCG).
The lead authors of the Framework for Equitable Energy Supply Transformation in the Appendix are Julie Curti and Kathryn Wright at MCG. The framework was supported by an advisory committee which included Kyle Diesner (City of Portland, OR); Anthony Giancatarino (formerly
Center for Social Inclusion); Jayant Kairam and Jorge Madrid (Environmental Defense Fund); and Ingrid Schwingler (Grid Alternatives). Michael Buck, David Castro, and Henry Gallegos from the Los Angeles Department of Water and Power provided input for the case study.
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CONTENTS
Introduction ...... 4
Executive Summary ...... 5
Step 1: Map the City’s Energy Landscape ...... 5
Step 2: Identify Available Strategies ...... 6
Step 3: Organize for Energy Transformation ...... 8
SECTION 1 The Energy Landscape ...... 9
1. Which Type of Utility Serves the City? ...... 9
2. Which State (Renewable) Energy Policies Apply? ...... 12
i. Is The State “Regulated” or “Deregulated”? ...... 13
ii. Does the State Establish Tariffs for Distributed Renewable Energy Ownership? ...... 17 iii. Does the State Enable Community Choice Aggregation? ...... 21
iv. Does the State Allow for Third-Party Ownership of Distributed Renewable Energy Resources? ...... 22 v. Has the State Established A Renewable Portfolio Standard? ...... 24
vi. Has the State Required Revenue Decoupling for Utilities? ...... 25
SECTION 2 City-Level Strategies ...... 26
Group 1. Consumer-Oriented Strategies ...... 28
Group 2. Strategies Targeting Municipal Operations ...... 32
Group 3. Utility-Focused Strategies ...... 34
SECTION 3 Organizing for Transformation ...... 40
A. City Staffing Strategies ...... 40
B. Partnerships and Networks ...... 42
Conclusion ...... 44
References ...... 45
Glossary ...... 49
Appendix: Framework for Equitable Energy Supply Transformation ...... 52
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INTRODUCTION Putting cities on a path to zero-carbon energy systems will require Organization of this Document transformative changes in the way that electricity is produced, Pathways to 100 lays out a three- purchased, and consumed. To meet this goal, cities, their residents, and step process designed to help cities the utilities that serve them will need to procure electricity generated plan for and enable their unique from carbon-free sources while substantially increasing local renewable energy supply transformation: energy generation. 1) map the city’s energy landscape; The practice of transforming cities’ energy supply systems is variable and 2) identify available strategies; and complex. In the U.S., the vast majority of cities do not directly control 3) organize capacity, resources, and their energy supply. Instead, policy and regulation is set at state, regional, partnerships. and national levels. As cities strive to meet their deep decarbonization and renewable energy goals, they will need to act on and influence their energy systems in new and creative ways.
Defining the Energy System Pathways to 100 provides a high-level map of pathways for municipalities A city’s energy system includes many seeking to transform their energy supply, outlining strategies for both kinds of energy (natural gas municipal operations and for all energy users within municipal limits. The networks, delivered heating fuels like document is organized around a three-step process that cities can use fuel oil and propane, transportation to identify an appropriate pathway forward. These are: 1) map the city’s energy such as gasoline, diesel fuels, energy landscape, 2) identify available strategies, and 3) organize for and industrial generation). This energy transformation. These steps guide cities through the key factors guide focuses predominantly on the that determine their level of influence over energy supply (e.g., state supply of electricity, but uses energy policies) and map out available strategies for energy “energy” as an alternative and transformation. These strategies range from interventions into energy synonymous term. supply management (e.g., community choice aggregation or utility municipalization) to more traditional forms of influence (e.g., active participation in formal energy regulatory proceedings). While Pathways to 100 focuses on transforming electricity supply, it touches briefly on renewable heating and cooling, and energy efficiency where these topics intersect with electricity supply.
Pathways to 100 is designed for use by city policymakers, planners, and administrators, as well as funders seeking to support local level energy transformation. It enables local leaders to select pathways to meet ambitious decarbonization goals, whether through the development of energy plans, electric utility engagement, or prioritizing next steps for climate and energy initiatives. The document is intended to support a diverse range of stakeholders working to advance decarbonization and ambitious renewable energy goals at the city level.
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PATHWAYS TO 100 EXECUTIVE SUMMARY
While many cities do not have full control over their energy systems, Table 1 – State energy policies cities can deploy a range of policy tools and strategies to influence their that enable city energy strategies energy supply. City leaders seeking to transition towards zero-emissions energy sources should understand the appropriate application of these • Utilities are deregulated tools. • Tariffs are in place to compensate distributed renewable energy generation This document provides a high-level map of pathways for municipal (e.g., net energy metering) energy supply transformation, structured around a three-step process • Community choice for cities to identify a pathway forward: 1) map the city’s energy aggregation (CCA) is permitted landscape, 2) identify available strategies, and 3) organize for energy • State enables third-party transformation. ownership (i.e., power purchase agreements) • A renewable portfolio standard (RPS) is in place STEP 1: MAP THE CITY’S ENERGY • State requires electric LANDSCAPE decoupling Note: State energy policies always apply A city’s options for energy supply transformation depend on the details to investor-owned utilities. Many states do not regulate municipal utilities, and of its energy landscape. Two factors are particularly significant: the utility rural electric utility cooperatives in the type and the state’s energy policies and regulations. same way. The type of utility serving the city. The type of utility serving a city is one of the strongest determinants of the city’s influence over its energy supply, as it dictates which strategies can be leveraged. Cities are typically served by one of three utility types: 1) investor-owned utilities, 2) rural electric utility cooperatives, or 3) municipal utilities (see Section 1 on page 9 for a discussion of the distinct characteristics of each utility type.)
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State energy policies and regulations. The state policy and regulatory landscape determine which strategies a city can use. Six key state energy policies that enable greater municipal control are listed in Table 1 on page 5. Municipalities in different states will have differing degrees of authority in local decision-making (including enacting energy ordinances), as dictated by state law (e.g., Dillon’s Rule vs. Home Rule states).1
STEP 2: IDENTIFY AVAILABLE STRATEGIES
Cities can use the City Energy Supply Strategy Matrix (see Table 2 on page 7) to identify which strategies they can leverage for energy supply transformation. These city-level strategies are grouped based on the stakeholders they target:
Consumer-oriented strategies include strategies cities can leverage to enable energy consumers, such as city residents and businesses, to procure renewable energy or generate their own renewable energy on-site. Cities can leverage most of these strategies regardless of utility type or state legislation, except for a few that depend on enabling state policies (strategies #7-9). Strategies targeting municipal operations include approaches for cities to procure renewable energy to meet the demand of municipal operations. Cities usually control the energy supply for their municipal operations, but the strategies cities can leverage depend on the utility type and on enabling state energy policies. Utility-focused strategies. Most cities have little direct control over the utility that serves them. However, cities with municipal utilities may have more direct decision-making authority over their utility, depending on the utility governance structure. As valued customers and large electricity users of the utility, cities can also use a number of strategies to influence the utility’s energy supply by leveraging their buying power.
The legend below explains which strategies in the City Energy Supply Strategy Matrix a city can leverage based on its state policy and utility context:
LEGEND Available strategy Available strategies lie entirely within the city’s jurisdiction. Potentially available strategy, depending on: Strategies that lie within a city’s jurisdiction, but are dependent on State legislation enabling state legislation. Strategies that may lie within a city’s jurisdiction depending on the city’s Utility governance structure level of jurisdiction over their municipal utility. Strategies that a city may be able to indirectly influence through Possible indirect influence interventions in state policymaking or rural electric cooperative boards. Strategy not available or not applicable See Section 1 for further detail on these factors.
1 For further information about Dillon’s Rule and Home Rule, please refer to the National League of Cities: 36 http://www.nlc.org/local-government-authority Page | 6
Table 2 – City Energy Supply Strategy Matrix
CITY ENERGY SUPPLY STRATEGY MATRIX Utility Type Serving the City
Municipal # City-Level Strategies IOU Coop Utility CONSUMER-ORIENTED STRATEGIES 1 Engage the community in setting energy goals.
2 Establish local incentives for on-site renewable energy (e.g., solar rebates).
3 Establish city mandates for on-site renewable energy (e.g., solar mandate).
4 Host a renewable energy bulk purchasing program (e.g., Solarize).
5 Reduce permitting, zoning, and inspection time and costs for renewable energy.
6 Lease public land for renewable energy.
7 Establish rates or tariffs that compensate energy generated on-site (e.g., net-metering).
8 Establish a community-shared renewable energy program (e.g., community solar).
9 Establish a community choice aggregation program (municipal aggregation). STRATEGIES TARGETING MUNICIPAL OPERATIONS
10 Establish renewable energy purchasing requirements for city buildings.
11 Procure renewable energy from retail electricity providers.
12 Partner with the utility and/or third-party to procure renewable energy. 13 Purchase renewable energy on-site to supply city operations (e.g., on-site solar). UTILITY-FOCUSED STRATEGIES 14 Engage the utility in setting energy goals.
15 Establish a local renewable portfolio standard (RPS).
16 Approve or influence the utility’s long-term energy generation plan.
17 Direct the utility to conduct a feasibility study for renewable energy procurement.
18 Approve or negotiate utility procurement contracts for renewable energy.
19 Approve or pilot a utility-owned rooftop solar program. 20 Leverage taxing authority over utility.
21 Renegotiate city-utility franchise agreement.
22 Establish a city-utility partnership to share decision-making power.
23 Municipalize the local electric grid.
24 Appoint or approve utility decision-makers. 25 Engage in state public utility commission (or equivalent agency) proceedings 37 Page | 7
STEP 3: ORGANIZE FOR ENERGY TRANSFORMATION
Large-scale energy transformation will require engagement and contributions from city residents and small business organizations, local institutions, and industry in addition to the city government. City resources—which include staff capacity, technical expertise, and financial resources—are often limited. To successfully drive energy supply transformation, cities need to consider the required capacities and financial resources, and develop strategies to effectively leverage both internal resources and external partnerships.
Internally, cities should identify an implementation team to coordinate energy transformation initiatives. This role can be assumed by a dedicated citywide energy manager, a sustainability director, or an interdepartmental working group. Collaboration with external partners and stakeholders can complement coordination efforts, such as through a joint steering committee with members from the private, nonprofit, and public sectors. Cities can use partnerships with community-based, nonprofit, or private sector organizations to provide needed input, resources, and technical expertise to support city energy planning efforts, advance research and development, or create incentives to spur renewable energy investment. City networks can provide opportunities to share best practices and common strategies through peer-to-peer learning. These networks can also lead to coalitions of cities, which can more effectively advocate for state and federal policies.
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SECTION 1 THE ENERGY LANDSCAPE A city’s options for energy supply transformation depend on the details of its energy landscape, including trends in energy markets, utility types, electricity market structures (e.g., regulated vs. deregulated states—see below), and state and federal energy polices and regulations. The following two questions serve as a simplified orientation for cities to understand where their sphere of influence lies, and thus which city-level strategies are accessible. These questions are:
1. Which type of utility serves the city? 2. Which state renewable energy policies apply to the city’s utility?
1. WHICH TYPE OF UTILITY SERVES THE CITY?
Any city intending to transform its energy system must first identify the Historical Context Investor-owned utilities and structure of its electric utility. Different types of electric utilities are subject municipal utilities emerged in the to different regulations. The utility type determines the sphere of early days of electrification, influence a city has over the utility, as well as which state renewable serving primarily urban dwellers. energy policies apply to the utility. By the 1930s, 90% of urban dwellers had access to electricity, There are three major types of utilities: investor-owned utilities (IOUs), while 90% of rural residents did electric utility cooperatives (Coops or Rural Electric Cooperatives), and not. Depression-era electrification 2 municipal utilities. programs relied on rural electric utility cooperatives to expand Most cities are served by IOUs. This utility model serves over 68% of U.S. service to rural areas. electricity customers (see Table 3 on page 10).3 Municipal utilities are the second most common, with over 2,000 municipal utilities in the U.S.
2 Other entities providing electric services in the U.S. include public utility districts (utility-only government agencies); Native American tribes; irrigation districts; mutual power associations; and other public and quasi-public entities. These utility types are outside of the scope of Pathways to 100. 3 American Public Power Association. 2015-2016 Annual Director & Statistical Report. Retrieved from: 39 http://www.publicpower.org/files/PDFs/USElectricUtilityIndustryStatistics.pdf Page | 9
serving mostly smaller cities and towns (over 50% of municipal utilities serve fewer than 10,000 customers).4
Table 3 – Electric utility types: prevalence, size, and governance
Utility Type
Investor-Owned Key Characteristics Municipal Utilities Utility Cooperatives Utilities
Typically owned by the Owned by the customers Ownership Privately owned. city. they serve. Structure varies Each customer is a significantly, ranging Company issues member-owner with one from a department stock and is vote under the “one Governance Governance within a city responsible to person, one vote” Structure/ administration to a shareholders. cooperative principle. Management municipal utility district Heavily regulated Member-owners elect the operating independently at the state level. board of directors who of the city make decisions. administration. Total number in the ~200 ~2,000 ~900 U.S.5 % U.S. customers ~68% ~15% ~13% served6 Prevalence Large service and Size territories in Typically large and Size of territory & multiple states, Generally small to mid- sparsely populated customer base serving a few size customer base. service territories, serving thousand to a few a small customer base. million customers.
4 American Planning Association. 2014. Planning for Solar Energy. Retrieved from: https://www.planning.org/publications/report/9117592/ 5 American Public Power Association. 2015-2016 Annual Directory & Statistical Report. Retrieved from: http://www.publicpower.org/files/PDFs/USElectricUtilityIndustryStatistics.pdf 6 American Planning Association. 2014. Planning for Solar Energy. Retrieved from: 40 https://www.planning.org/publications/report/9117592/ Page | 10
Key Implications for City Influence
Cities have varying levels of influence over each utility type. This largely reflects the differences in ownership and governance structure between utilities (see Table 3 for comparison). Cities seeking to leverage strategies labeled in the City Energy Supply Strategy Matrix as “potentially available” or “possible through indirect influence” should be aware of the following:
Investor-Owned Utilities – Cities generally have little direct control Resource: Future Utility Business over an IOU State regulators determine most aspects of the utility’s Models rates and services, including policies, programs, and incentives for The Smart Electric Power Alliance’s (SEPA) 51st State renewable energy. Here, cities (as large and important utility initiative creates blueprints for customers) can influence a utility by intervening in state regulatory electricity market reform including proceedings (see strategy #25). Cities can also directly influence an regulatory regimes, market IOU by leveraging their buying power; taxing authority (strategy structures and utility business #20); the city’s franchise agreement (strategy #21); and models. The platform collects municipalization (strategy #23). ideas and toolkits from over two Rural Electric Utility Cooperatives – Cities generally have as little dozen utilities, trade associations, formal jurisdiction over a Coop as they do an IOU. Unlike an investor- industry analysts, tech-start-up 7 owned utility; however, rural electric utility cooperatives are entrepreneurs, and visionaries. governed primarily by the Coop’s board of directors, with only
minimal oversight from state regulators. Cities can collaborate with or lobby the board of directors for renewable energy programs and incentives. Alternatively, cities can lobby the member-owners who elect the board of directors. Municipal Utilities7– Cities with municipal utilities have the highest degree of direct influence over their utility. Depending on the Muni governance structure, a city council may have full authority to appoint the utility’s board members, direct or approve the utility’s integrated resource plan, or secure procurement contracts.
Cities served by any utility type seeking to intervene in regulatory proceedings should familiarize themselves with the jurisdiction of key state and federal regulatory bodies (see Table 4 on page 12).
7 SEPA. 51st State initiative. Retrieved from: https://sepapower.org/our-focus/51- 41 state-initiative/ Page | 11
Table 4 – Key actors: State and federal regulatory bodies
Jurisdiction by Utility Type
Regulatory Investor-Owned Rural Electric Municipal
Bodies Utilities Coops Utilities A Public Utilities Full jurisdiction to Minimal jurisdiction, often exempting Commission regulate almost all these utilities from state energy policies. State (PUC) or a Public aspects of the utility’s level Service rates and services. Commission (PSC) Federal Energy Regulates utilities that Often not directly regulated by FERC Regulatory Body operate in multiple other than some wholesale power Federal (FERC) states and regulates all transactions. level wholesale power transactions across state lines.
2. WHICH STATE (RENEWABLE) ENERGY POLICIES APPLY?
State policies and regulations are one of the most decisive factors in determining which restrictions or incentives are in place for renewable energy.
The following questions provide an orientation on key state policies a city should be familiar with:
1. Is the state regulated or deregulated (restructured)? 2. Does the state establish net metering or other special rates/tariffs for distributed renewable energy generation? 3. Does the state enable community choice aggregation (or municipal aggregation)? 4. Does the state allow for third-party ownership of distributed renewable energy resources? 5. Does the state establish a renewable portfolio standard (or alternative portfolio standard)? 6. Does the state require electric decoupling?
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The state policies highlighted in this section do not apply to all utilities equally. Table 5 indicates how to navigate state energy policies depending on the utility type serving the city.
T able 5 – Navigating state energy policy by utility type
Utility Type Serving the City
Investor-Owned Utility Rural Electric Utility Cooperative Municipal Utility
State policies and State policies and regulations on State policies and regulations only regulations almost renewable energy only rarely apply to rarely apply to municipal utilities. always apply to rural electric utility cooperatives. Cities Cities should first identify which of investor-owned should first identify which of the policies the policies apply to the utility. In utilities. apply to the utility. In cases where state cases where state renewable renewable energy policies do not apply energy policies do not apply to to rural electric cooperatives, rural municipal utilities, cities may be electric cooperatives can establish able to “opt-in” or establish programs for their utility territory. comparable policies locally.
I. IS THE STATE “REGULATED” OR “DEREGULATED”?
Regulated and deregulated are common terms that are more accurately phrased as states where utilities are vertically integrated and the utility owns all the power plants or states with retail competition, where the power plants are not owned by the utility. In vertically-integrated states, the utilities are permitted to maintain a monopoly over all utility functions (see Box 1: Utility Functions below). In states with retail competition (also referred to as “restructured states”), investor-owned utilities are not permitted to own and operate the power plants that generate electricity, and retail customers are generally free to purchase energy from competitive power suppliers. Utilities in these states are still responsible for delivering that energy to customers, and may be better understood as transmission and distribution companies. The map in Figure 1 on page 15 indicates which states have adopted retail competition. 43
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Box 1: Utility Functions Historical Context: Utility Traditionally, electric utilities served all functions in the process from Restructuring Until the 1990s, all electric utilities generating electricity to delivering it to their customers. These functions are were vertically integrated. Since typically divided in three categories: the 1990s, a handful of states 1. Generation—owning and operating facilities to generate have passed laws to “deregulate” electricity). (or, more accurately “restructure”) 2. Transmission—owning and operating the power lines to carry electricity markets, with the electricity across long distances [e.g., large power lines]. purpose of separating the 3. Distribution—owning and operating infrastructure to distribute generation of energy from its electricity to end-use customers [e.g., smaller power lines]. distribution to retail customers. All electric utilities are recognized as a type of “natural monopoly” and The theory behind restructuring is electric utilities generally hold a monopoly over at least the transmission that competition between and distribution functions of an electric utility. This means that in each electricity generators would service territory (which can range in size from a large multistate region to a ultimately lead to lower electricity single municipality) one utility is given exclusive rights to sell electricity. rates. However; not all utilities hold a monopoly over all three functions. Utilities In so-called “restructured states,” that do are known as vertically-integrated. A vertically-integrated utility electric utilities were legally does not necessarily generate all the power it sells, and may contract with obligated to divest from other generators, but will be the sole option for retail energy customers to generation resources. As a result, purchase electricity from.
most electric utilities in restructured states are
“transmission and distribution companies”—they own and operate the power lines and poles to distribute electricity, but are not in the business of generating electricity. However; in recent years, some utilities operating in restructured markets have regained ownership of some generation resources.
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Figure 1 – Map of Regulated and Deregulated States
American Coalition of Competitive Energy Suppliers.8
Key Implications for Renewable Energy
Retail competition has significant implications for an energy user’s ability Additional Resource to purchase renewable energy from the utility: To identify the status of retail In states with retail competition (also referred to as “retail choice,” competition on a state-by-state “competitive markets,” or “deregulated markets”), energy customers basis, visit the American Coalition of Competitive Energy Suppliers may select a retail electricity provider other than the utility. website Customers in these states may have several options to purchase from retail electricity providers that could source from renewable energy either through contracts with renewable energy generators, or via renewable energy certificates (RECs). To better understand the differentiating characteristics of these options, see Box 2: Understanding ‘Green Power’ Options below. In cases where the electricity customer does not select a retail electricity provider, the transmission and distribution company in the given territory will typically “go to market” on behalf of customers and provide “basic” or “default” service.
8 American Coalition of Competitive Energy Suppliers. Retrieved from: 45 http://competitiveenergy.org/consumer-tools/state-by-state-links Page | 15
In vertically-integrated states, energy customers have only one utility What does buying “Green power” from which they can purchase electricity. This utility may offer the mean? There are many options available option to add a premium per unit of energy to a customer’s to municipalities when procuring electricity bill for renewable energy (also known as a “green power” renewable energy. Depending on option) that consists only of RECs, or offer a special utility renewable the pathway, the impact of the tariff (often refered to as a “green tariff”) that includes both an purchase in driving new renewable electricity price and RECs, or the utility may not offer a special pricing development (or “additionality”) option for renewable energy. and associated pollution and carbon reduction impacts can vary significantly, and be ambiguous. Box 2: Understanding Utility Renewable Energy Purchasing However; there is no ambiguity Options9
that the ownership and retirement To understand utility-provided renewable energy purchasing options, it is of Renewable Energy Certificates helpful to understand the following differentiating characteristics: (RECs) is the legal foundation of REC-Only-Based Green Power Programs - Some utilities offer premium any renewable energy claim, and “green power” rates to customers, in which customers purchase the a municipality needs to own and environmental attributes of renewable energy generation RECs as a part retire RECs to claim that they are of their normal utility bill. purchasing renewable energy Power Purchase Agreements (PPAs) – In deregulated markets, power regardless of which purchasing customers may negotiate direct contracts (PPAs) with independent 9 renewable power generators, in which the customer purchases the output pathway is selected. of a specific renewable energy project or portfolio of projects. The customer’s utility continues to provide transmission, distribution, and load balancing services to the customer, and may integrate the price of renewable energy production from the PPA into the retail power price. Utility Renewable Tariffs (or Green Tariffs) – In traditionally regulated markets where customers do not have the options of negotiating PPAs directly, utilities may offer dedicated tariffs (often for large customers) where the utility develops or procures renewable energy resources specifically for that customer, and charges the customer under a special tariff (which may be higher or lower than the normal price of power). This is distinguished from REC-only-based purchasing, in which the price of just the REC is added as a premium to a customer’s energy bill. Direct Access Tariffs – Also applicable to traditionally regulated markets, direct access tariffs allow certain classes of customers to purchase power from competitive suppliers (similar to customers in a restructured market), rather than from their utility. As with a PPA and unlike a Utility Renewable Tariff, Direct Access Tariffs allow customers to purchase power directly from independent renewable energy suppliers, with the utility continuing to provide transmission and distribution services.
9 For more details see: http://www.greenribboncommission.org/wp- content/uploads/2017/03/Institutional-Renewable-Energy-Procurement-Guidance- 1.pdf 46
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II. DOES THE STATE ESTABLISH TARIFFS FOR DISTRIBUTED RENEWABLE ENERGY OWNERSHIP? State regulators have jurisdiction over policies that enable compensation for energy customers who generate renewable energy on-site (referred to as distributed renewable energy generation). These policies are key for cities to assess what incentives are in place for residents, businesses, and municipalities to install and own renewable energy. While these state-level policies sometimes apply only to IOUs and Coops, cities served by municipal utilities have the option to adopt similar policies locally. This section highlights four key policies, or policy areas, for distributed renewable energy generation:
1. Net Metering 2. Aggregate Net Metering 3. Shared Renewable Energy 4. Feed-In Tariffs
1. Net Metering Net metering is a state policy allowing customers who generate electricity on-site (e.g., through solar panels or wind turbines) to be charged by their utility only for the “net” energy consumption over the course of a month, after subtracting the amount of on-site energy generated. In many states, customers who generate an excess amount of energy in a month can carry over a credit to the next month’s bill. Figure 2 indicates which states have net metering policies as of October 2016.
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Figure 2 – States with Net Metering Policies Database of State Incentives for Renewables & Efficiency10
2. Aggregate Net Metering Aggregate or virtual net metering are variations of net metering that allow a single customer to apply credits from excess generation from the site where the electricity is generated to another off-site account (with geographic and utility territory restrictions). This policy supports solar for customers with multiple meters (e.g., city-owned buildings) or for customers seeking to install renewable energy on a property with more suitable conditions (e.g., transfers net metering credits from a municipal landfill solar project to multiple municipal accounts). It also allows customers without space for solar on their building to purchase renewable energy through “community solar” arrangements. Figure 3 indicates which states have meter aggregation or virtual net metering policies.
10 Database of State Incentives for Renewables & Efficiency. April 2017. Retrieved from: http://ncsolarcen-prod.s3.amazonaws.com/wp- 48 content/uploads/2017/04/DSIRE_Net_Metering_April2017.pdf Page | 18
Figure 3 – States with Aggregate Net Metering
Database of State Incentives for Renewables & Efficiency11
3. Shared Renewable Energy “Shared renewable energy” is a term used to refer to a renewable energy installation that is owned by multiple customers. Shared renewable energy options can provide access to renewable energy for customers who are unable to install on-site renewable energy systems (e.g., multi- Additional Resource family residences or homes with roofs incompatible with solar). For state-by-state information on shared community energy policies, A community renewable project (usually solar PV and called “community visit the Shared Renewables HQ solar”) is a renewable energy facility that allows multiple people to website.11 subscribe to and receive some form of benefit from the facility (e.g., bill credits, RECs, tax credits). State-level community solar legislation could, for example, require investor-owned utilities to offer a community solar project or solar garden program for energy customers within its service territory. Shared renewable energy projects often typically utilize a special tariff/rate, similar to aggregate or virtual net metering policies, that facilitate the utility’s metering and billing of participating customers. Figure 4 indicates which states have policies enabling multiple owners of one renewable energy installation.
11 Database of State Incentives for Renewables & Efficiency. October 2016. Retrieved from: http://www.ncsl.org/research/energy/net-metering-policy-overview-and-state- 49 legislative-updates.aspx#sharedrenew Page | 19
Figure 4 – States with Policies for Community Shared Renewable Energy Shared Renewables HQ12
4. Feed-In Tariffs A feed-in tariff is a policy that guarantees a long-term contract for renewable energy producers to sell all electricity generated back to the electric grid at a fixed price. Unlike net metering, where on-site generation is generally subtracted from a customer’s monthly energy consumption, a feed-in tariff customer will have a separate arrangement with the utility to be paid for all electricity generated (which will be held separate from the customer’s normal utility bill for consumed electricity). The feed-in tariff fixed price is typically set to be sufficient to recover costs, plus a reasonable profit. There are six U.S. states that have a variation of feed-in tariff California, Hawaii, Maine, Oregon, Vermont, and Washington). However; many have a cap on the total renewable energy capacity to be installed under the program that has already been met. Internationally, the feed-in tariff is the most common policy mechanism used to compensate renewable energy generators.
Several states have implemented, or are in the process of designing, a related type of policy called a value-of-solar tariff (VOST). Like a feed-in
12 Shared Renewables HQ. Retrieved from: 50 http://www.sharedrenewables.org/community-energy-projects/ Page | 20 tariff, a VOST provides a discrete payment to renewable energy generators (though so far these policies have only been implemented for solar energy), rather than a bill adjustment like net metering. Unlike feed- in tariffs, which are typically long-term, fixed price contracts that are priced to allow for cost-recovery, VOSTs are priced based on the various sorts of value provided by solar energy projects (including, for example, the value of generated electricity, peak capacity reduction, and environmental benefits). VOSTs have been implemented in Minnesota and New York, and are being considered in additional states including Maine and Arizona.
III. DOES THE STATE ENABLE COMMUNITY CHOICE AGGREGATION?
Community Choice Aggregation (CCA) (also referred to as municipal aggregation) is a state policy that allows municipalities to select an electricity provider on behalf of their residents, businesses, and municipal Additional Resource accounts. Not all CCAs incorporate renewable energy, and many are For state-by-state information on incorporated primarily for the purpose of providing a lower-cost Community Choice Aggregation alternative to the utility electricity service. Nevertheless, the concept of a Programs, visit the U.S. CCA presents a unique opportunity for municipalities to choose the Department of Energy’s CCA source of their electricity, and meet the electricity demand of their entire webpage.12 population with higher percentages of renewable energy. In some cases, cities can also leverage the aggregated demand to negotiate a lower electricity rate for renewable power generation. This can both drive a greater percentage increase in renewables citywide, and result in cost savings for individuals who might otherwise have invested in renewable generation independently. Some CCA administrators purchase unbundled RECs, which allows customers to make a renewable claim. Others enter into PPAs that support development of new electricity sources for the CCA. Only seven states have legislation permitting CCAs, as indicated in Figure 5.
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Figure 5 – States enabling Community Choice Aggregation
U.S Department of Energy13
IV. DOES THE STATE ALLOW FOR THIRD- PARTY OWNERSHIP OF DISTRIBUTED RENEWABLE ENERGY RESOURCES?
Some states allow third-party ownership of distributed renewable energy Additional Resource systems through power purchase agreements (PPA). A PPA enables a For a detailed state-by-state third-party, such as a renewable energy developer, to build, own, and listing of third-party financing operate a renewable energy system (e.g., solar PV, solar thermal, wind, legislation, visit the DSIRE or otherwise) on behalf of the host customer. In this model, the host website.13 typically purchases the electricity generated at a below-market rate while avoiding the upfront and operating costs of owning a renewable energy system. The host usually has the option to rent or lease the system back from the developer when the PPA contract expires. This model allows tax-exempt entities—such as governments and nonprofits—that do not have access to federal and state tax credits for renewable energy, to leverage these financial incentives to achieve electricity savings. These types of third-party ownership model PPAs14 are only permitted in
13 U.S Department of Energy. 2017. Community Choice Aggregation. Retrieved from: https://web.archive.org/web/20170315071225/http://apps3.eere.energy.gov/greenpo wer/markets/community_choice.shtml 14 Database for State Incentives for Renewables & Efficiency. Retrieved from: 52 http://www.dsireusa.org/resources/detailed-summary-maps/ Page | 22 certain states (see Figure 6), but are one of the most popular models of financing solar PV project (approximately 60% of system sales between December 2014 and November 2015).15
This model is popular both for residential customers (as it provides a means to avoid the upfront cost of distributed renewable energy installation) and for municipal energy projects (because, as a tax-paying entitity, a third party owner is able to take advantage of federal tax credits for renewable energy capital costs where a municipality cannot, and can reflect the value of those tax credits through a lower PPA price).
Figure 6 – States Allowing Power Purchase Agreements (PPAs) Database for State Incentives for Renewables & Efficiency16
15 Solar Electric Power Association (SEPA). Retrieved from: http://www.utilitydive.com/news/survey-over-half-of-solar-installers-do-not-offer- tpo-financing-or-ppas/411413/ 16 Database for State Incentives for Renewables & Efficiency. July 2016. 3rd Party Solar PV Power Purchase Agreement (PPA). Retrieved from: http://ncsolarcen- 53 prod.s3.amazonaws.com/wp-content/uploads/2014/11/3rd-Party-PPA.pdf Page | 23
V. HAS THE STATE ESTABLISHED A RENEWABLE PORTFOLIO STANDARD? A renewable portfolio standard (RPS) requires utilities to meet a certain Additional Resource percentage of their electricity sales through qualifying renewable energy For a detailed state-by-state or RECs. A renewable portfolio goal is similar, but not mandatory. listing of renewable portfolio Although a state RPS does not directly determine which city-level standards, visit the National strategies are available, utilities in states with an ambitious RPS have Conference of State Legislatures more of an incentive to take measures to further incorporate renewable website. energy into their electricity supply. The map in Figure 7 indicates states with renewable portfolio standards as of December 2016.
Figure 7 – States with Renewable Portfolio Standards
National Conference of State Legislatures17
17 National Conference of State Legislatures. 2016. State Renewable Portfolios Standards and Goals. http://www.ncsl.org/research/energy/renewable-portfolio- 54 standards.aspx Page | 24
VI. HAS THE STATE REQUIRED REVENUE DECOUPLING FOR UTILITIES? A customer’s utility bill is divided into two main parts: 1) the cost of operating and maintaining the transmission, delivery, and distribution of electricy, and 2) the cost of the electricity generation. Traditionally, a utility’s revenue is tied to direct electricity sales, which puts utility interests at odds with energy efficiency or other efforts that would decrease sales. Decoupling legislation removes this disincentive; it requires the utility to separate its profit from its electricity sales, and instead ties utility profits to the transmission and distribution portion of the electricity bill. By removing this disincentive, decoupling opens the opportunity for utilities to integrate energy efficiency, renewable energy, and energy storage programs as potential revenue streams. Electric decoupling does not directly determine which city-level strategies are available, but utilities in states with electric decoupling have a better incentive structure in place to collaborate on energy supply transformation. The map in Figure 8 indicates which states require electric decoupling as of January 2016.
Figure 8 – States with Electric Decoupling Natural Resources Defense Council18
18 Natural Resources Defense Council. 2016. Electric and Gas Decoupling in the U.S. https://web.archive.org/web/20161207161322/https://www.nrdc.org/experts/samant 55 ha-williams/evidence-decoupling-spurs-energy-efficiency-investment Page | 25
SECTION 2 CITY-LEVEL STRATEGIES Using the City’s Energy Landscape identified in Step 1, cities can begin to select available strategies towards energy supply transformation. Mirroring the City Energy Supply Strategy Matrix (see Table 6 on page 27), city-level strategies in this section are grouped based on the stakeholders they target:
Consumer-oriented strategies include strategies cities can leverage to enable energy consumers, including city residents and businesses, to procure renewable energy or generate their own renewable energy on-site or off-site. Strategies targeting municipal operations include approaches for cities to procure renewable energy to meet the electric demand of municipal operations. Utility-focused strategies include strategies for a city to either directly LEGEND or indirectly influence the utility’s energy supply. Available strategy
Potentially available strategy, The legend to the left summarizes how to use this section to identify depending on: which strategies a city can leverage. Strategies are indicated as one of the following: 1) available strategy (these strategies lie entirely within the State legislation city’s jurisdiction); 2) potentially available strategy, depending on state Utility governance structure legislation (these also lie within a city’s jurisdiction, but are dependent on Possible indirect influence enabling state legislation)-;, 3) potentially available strategy, depending (through interventions in state on utility governance structure (here, the city needs to first identify their regulations or rural electric level of jurisdiction over the municipal utility); 4) indirect influence cooperative boards) possible through interventions in state regulations or rural electric Strategy not available or not
applicable cooperative boards; or 5) strategy not available or not applicable. Note that any strategy dependent on state legislation also lends itself to indirect influence through regulatory intervention.
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Table 6 – City Energy Supply Strategy Matrix
CITY ENERGY SUPPLY STRATEGY MATRIX Utility Type Serving the City
Municipal # City-Level Strategies IOU Coop Utility CONSUMER-ORIENTED STRATEGIES 1 Engage the community in setting energy goals.
2 Establish local incentives for on-site renewable energy (e.g., solar rebates).
3 Establish city mandates for on-site renewable energy (e.g., solar mandate).
4 Host a renewable energy bulk purchasing program (e.g., Solarize).
5 Reduce permitting, zoning, and inspection time and costs for renewable energy.
6 Lease public land for renewable energy.
7 Establish rates or tariffs that compensate energy generated on-site (e.g., net-metering). 8 Establish a community-shared renewable energy program (e.g., community solar). 9 Establish a community choice aggregation program (municipal aggregation). STRATEGIES TARGETING MUNICIPAL OPERATIONS
10 Establish renewable energy purchasing requirements for city buildings.
11 Procure renewable energy from retail electricity providers. 12 Partner with the utility and/or third-party to procure renewable energy. 13 Purchase renewable energy on-site to supply city operations (e.g., on-site solar). UTILITY-FOCUSED STRATEGIES 14 Engage the utility in setting energy goals.
15 Establish a local renewable portfolio standard (RPS).
16 Approve or influence the utility’s long-term energy generation plan.
17 Direct the utility to conduct a feasibility study for renewable energy procurement.
18 Approve or negotiate utility procurement contracts for renewable energy.
19 Approve or pilot a utility-owned rooftop solar program. 20 Leverage taxing authority over utility.
21 Renegotiate city-utility franchise agreement.
22 Establish a city-utility partnership to share decision-making power.
23 Municipalize the local electric grid.
24 Appoint or approve utility decision-makers. 25 Engage in state public utility commission (or equivalent agency) proceedings 57 Page | 27
GROUP 1. CONSUMER-ORIENTED STRATEGIES19
Group 1 consists of strategies that cities can take to enable energy Example: Portland, OR consumers, including city residents and businesses, to procure Portland’s 2015 Climate Action renewable energy or generate their own renewable energy on-site. Most Plan (CAP) release was of the strategies are directly within a city’s jurisdiction and intersect with accompanied by an equity permitting, zoning, inspection, and planning processes, as well as other integration guide, aimed at actions to incentivize, promote, or engage the community in renewable helping the city address the needs of low-income communities and energy development. However, strategies #7-9 will depend on the status communities of color in its climate of state energy policies (e.g., legislation enabling distributed renewable and energy planning. The city energy tariffs, community renewable energy, or community choice considers equitable access to the aggregation), as indicated in Section 1: The Energy Landscape. services, resources, and 20 opportunities outlined in the CAP 1. Engage the community in setting energy goals essential to achieving energy Cities can convene, facilitate, or support public discussions with the transformation and carbon community on the city’s energy goals. This may be in conjunction reduction goals. The guide and with the city’s strategic planning process and/or climate action the integration of equity in the planning process. From an energy supply transformation CAP was advised by an Equity perspective, best practices in this area include: 1) incorporating Working Group made up of six community members and technical experts on technical committees community representatives over or in a decision-making body, 2) establishing working groups to the course of two years.19 review and provide recommendations, and 3) soliciting direct input from community members, e.g., via public open houses, public hearings, online surveys, or formal comments.
Example: San Francisco, CA The City of San Francisco 2. Establish local financial incentives for on-site renewable energy established an incentive program, Cities can establish programs to incentivize renewable energy for GoSolarSF, that offers incentive residents and businesses. These programs employ financial payments for residents, incentives, such as rebates for renewable energy installations, tax businesses, and nonprofits credits, providing exemptions from property taxes, and zero-interest installing solar within the City. The loans that can be repaid through tax assessments. Incentive city offers a slightly higher programs may offer tiered incentives to support renewable energy incentive for residential for low- to medium-income households (see San Francisco example). installations within the City’s “environmental justice zip codes,” as well as other qualifying low- 19 income residents.20 City of Portland Bureau of Planning and Sustainability. “Climate Action Through Equity: The integration of equity in the Portland/Multnomah County 2015 Climate Action Plan.” July, 2016. Retrieved from https://www.portlandoregon.gov/bps/article/583501 20 San Francisco Water Power Sewer. GoSolarSF. Retrieved from: 58 https://sfwater.org/modules/showdocument.aspx?documentid=6393
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3. Establish city mandates for on-site renewable energy (e.g., solar mandate or solar-ready mandate) Example: Somerville, MA Cities can adopt legislation that requires renewable energy The City of Somerville, together with local volunteers, launched the installations on-site. City mandates often support renewable energy Solarize Somerville campaign in in the new construction phase (or during a major renovation), when 2016 and resulted in >500kW of it is relatively cheap and easy to install. For example, a city may new solar capacity installed by the require certain new buildings to install solar PV or solar thermal on end of the year.21 their rooftops (i.e., a “solar mandate”), or require new buildings to be constructed in a manner that would accommodate a future rooftop solar system (i.e., a “solar ready requirement”). Cities may also require Additional Resource: The Solarize that new buildings connect to an available district heating system. Guidebook View the U.S. Department of 4. Host a renewable energy bulk purchasing program (e.g., Solarize Energy’s Solarize Guidebook, a 2122 campaign) community guide to collective Cities can host or support group purchasing programs for renewable purchasing of residential PV energy (e.g., Solarize campaigns). This strategy has multiple benefits. systems.22 Customer acquisition costs represents a significant portion of the
total cost of installing renewable energy (estimated at 9.2% of the total cost for a residential solar system).23 Bulk purchasing can help Example: Minneapolis, MN cut these costs, while spurring market development and educating The City of Minneapolis ran an communities about renewable energy. “Solarize” campaigns have extensive process to engage been the most successful renewable energy bulk purchasing stakeholders in developing its examples, but the model can be applied to a variety of renewable Climate Action Plan, including technologies, including solar thermal, heat pumps, and electric designating community members vehicles. to serve on technical committees and establishing an Environmental Justice Working Group to provide recommendations and review progress. The City’s 2014 framework, “Minneapolis Energy Pathways,” outlines its strategies for stakeholder engagement and working with its utility as part of
the plans and policies that have 21 City of Somerville. 2016. SustainaVille. Retrieved from: shaped the City’s current energy http://archive.somervillema.gov/sustainaville/solarize goals.24 22 Northwest Sustainable Energy for Economic Development (Northwest SEED). 2011. The Solarize Guidebook: A community guide to collective purchasing of residential PV systems. Retrieved from: http://www.nrel.gov/docs/fy12osti/54738.pdf 23 National Renewable Energy Laboratory. 2013. Benchmarking Non-Hardware Balance-of-System (Soft) Costs for U.S. Photovoltaic Systems, Using a Bottom-Up Approach and Installer Survey. Retrieved from: 59 http://www.nrel.gov/docs/fy14osti/60412.pdf
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5. Reduce permitting, zoning and inspection barriers to renewable Box 3: Federal and State 24 Incentives energy Cities can support renewable energy development by streamlining Tax incentives are a common permitting processes. Lengthy and complex permitting processes for mechanism to financially incentivize renewable energy renewable energy technologies present barriers to contractors, generation. Existing federal and residents, and permitting officials. Unclear permitting applications state tax incentives can significantly shift the financial and extensive permitting reviews increase costs by requiring more viability of a given renewable time and adding unnecessary overhead expenses. There are many energy project. ways that municipalities can mitigate these “soft costs.” For example,
Federal Tax Incentives – The streamlining permitting for small-scale solar PV systems that meet federal government offers an certain criteria removes a significant barrier for consumers hoping to “investment tax credit,” set to expire in 2021. This allows install residential PV systems. Permitting can be streamlined for renewable energy generators established technolgies, such as solar PV and solar thermal, as well to deduct 30% of the cost of installing a qualifying as emerging technologies, such as storage (e.g., batteries). renewable energy system from federal taxes. Cities can also support renewable energy development by reducing State Tax Incentives – Many inspection costs. Most municipalities require inspections for states offer tax incentives (including tax credits, renewable energy systems, which involves paperwork, travel time, property tax exemptions, waiting time, and physical inspection time. Cities can minimize etc.) for renewable energy inspection costs by removing process redundancies, such as systems. reducing the number of inspections required and coordinating
inspections internally (e.g., between building and electrical inspection departments) and with the utility in order to reduce time and travel. Example: Seattle, WA In 2012, the City of Seattle 6. Lease public land for renewable energy25 established rules requiring that Municipalities can lease public facilities or public land for community- commercial buildings have a small scale renewable energy development. Such devepments can help renewable (solar) energy system at projects move froward where residents are seeking a site to develop the time of construction, and that a community-owned renewable energy project, or a utility would like they reserve a certain area of rooftop space as “solar-ready.” The to develop community renewable energy (e.g., a community solar stated purpose is to “ensure that garden). future larger-scale solar installations will be straightforward and economical.25
24 Center for Energy and Environment. 2014. Minneapolis Energy Pathways: A Framework for Local Energy Action. http://www.ci.minneapolis.mn.us/www/groups/public/@citycoordinator/documents/ webcontent/wcms1p-121587.pdf 25 Seattle Department of Construction and Inspections. 2015. Renewable Energy and Solar-Ready Roofs for Commercial Buildings. Retrieved from: 60 http://www.seattle.gov/DPD/Publications/CAM/Tip422.pdf
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7. Establish tariffs or incentives for excess distributed renewable generation (e.g., feed-in tariff, net-metering, value-of-solar tariff) Example: Philadelphia, PA The City of Philadelphia, PA has Municipal utilities are frequently exempt from state regulations that implemented a streamlined require utilities to compensate residential or commercially-owned permitting process for solar PV renewable energy project owners. Cities with municipal utilities have systems that are <10kW and meet the unique opportunity to establish their own rules locally and certain criteria. This new process implement policies such as net-metering, feed-in tariffs, or value-of- allows for an over-the-counter solar tariffs. Tariffs that fairly compensate the value of distributed review of an electrical permit and generation can incentivize renewable energy generation and benefit does not require a building permit the municipal utility. Cities served by investor-owned utilities and application.26 rural electric utility cooperatives cannot establish local tariffs, but
they can lobby state regulators (such as the public utility commission, or department of energy) or the utility cooperative board of directors for such tariffs to be established.
8. Establish a community-shared renewable energy program (e.g., Example: Burlington, VT community solar) 2627 28 The City of Burlington, VT Cities served by investor-owned utilities or rural electric utility coordinates its permitting and cooperatives have relatively little direct control over community inspection process with Burlington Electric Department—providing renewable energy, often defined as shared renewable energy the utility with the permit systems, typically solar or wind, owned by or financially benefiting application as soon as it has been multiple people. However, where state policies are favorable, cities submitted.27 may host community renewable energy projects and promote community solar programs among residents.
Cities served by a cooperative electric utillities can engage with the utility in exploring and developing a community renewable energy program for residents and business in its service territory (see Resource: “The Community Solar Resource: “The Community Solar Playbook”). Communities served by Playbook” municipal utilities can approve, support, or even initiate a municipal The “Community Solar Playbook” from the National Rural Electric utility-provided community renewable energy program. Cooperative Association (NRECA) is a guide for utility cooperatives
on community solar business 26 U.S. Department of Energy. 2016. Retrieved from: https://energy.gov/savings/city- models and project philadelphia-streamlined-solar-permitting-and-fee-reduction 28 27 Burlington, VT Public Works. Requirements for Electric Permit Submittal. Retrieved implementation plans. from: https://www.burlingtonvt.gov/uploadedFiles/BurlingtonVTgov/Departments/Public_ Works/Construction_Permits/SolarPV_permit%20guidelines2012revision.pdf 28 National Rural Electric Cooperative Association. In collaboration with Clean Energy Collective. 2016. The Community Solar Playbook. Retrieved from: https://www.cooperative.com/public/bts/renewables/Pages/community-solar- 61 playbook.aspx
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Municipalities served by any utility type may lease public land for project development, create and publish a permitting checklist, and remove zoning restrictions for community renewable energy.
9. Establish a community choice aggregation program (municipal Example: Westchester County, aggregation)29 30 NY In states with enabling legislation, cities served by investor-owned Westchester Smart Power utilities may seek to establish a community choice aggregation Program became the first CCA in program in order to a) procure renewable energy on behalf of the New York State and will serve 17 entire community (with the option to opt-out), or b) gain control over of the 20 municipalities in Westchester County that have local electricity rates and aim for a lower negotiated price for joined the program. The CCA renewable energy. In practice, not all CCAs lead to lower electric rates service came online in 2016.29 for ratepayers or renewable energy options. Many CCAs rely only on renewable energy certificates (RECs) for their renewable energy, but do not also contract for the energy or offer any long-term price stability for customers. Enabling state legislation (see Section 1: Energy Landscape) is required for cities to pursue this strategy. Example: Austin, TX In 2011, the City of Austin met its goal to supply all city-owned buildings and facilities with 100% GROUP 2. STRATEGIES TARGETING renewable energy (a goal MUNICIPAL OPERATIONS established in its 2007 city council resolution). This was Group 2 consists of strategies for cities to procure renewable energy to achieved through Austin Energy’s meet the demand of municipal operations. Cities have a large sphere of GreenChoice program.30 influence over their own municipal operations, but the strategies a city can leverage will depend on the utility type and on state energy policies
(e.g., status of retail competition, tariffs for distributed renewable energy, and third-party ownership).
10. Establish renewable energy purchasing requirements for city buildings Cities can adopt renewable energy purchasing requirements by formalizing a resolution, ordinance, bylaw, or alternative administrative action. This would establish the requirement that a
29 Sustainable Westchester. 2016. New York State's First Community Choice Aggregation Program Moves Ahead as Sustainable Westchester and 17 Municipalities Award $150M Energy Contract to ConEdison Solutions. Retrieved from: http://www.prnewswire.com/news-releases/new-york-states-first-community-choice- aggregation-program-moves-ahead-as-sustainable-westchester-and-17- municipalities-award-150m-energy-contract-to-conedison-solutions-300233396.html 30 Austin Energy. Green Power Options. Retrieved from: http://bit.ly/2nTjwiW 62 (austinenergy.com)
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certain portion of the energy a municipality procures be purchased from renewable sources.
11. Procure renewable energy from retail electricity providers Example: Washington, DC Cities in states with retail competition have more options to procure Washington, D.C. established a renewable energy than cities served by vertically integrated utilities. large-scale Power Purchase For example, cities in states with retail competition can solicit Agreement (PPA) in 2015 with proposals from competitive retail suppliers to supply municipal Iberdrola Renewables, LLC that operations with renewable energy. Some suppliers may offer options will finance a 46 MW windfarm in that include renewable energy at a fixed rate (see Box 2: southwestern PA. This wind farm Understanding Renewable Energy Options). Cities served by vertically- will directly supply 35% of the integrated utilities cannot leverage this strategy. This includes District government’s electricity demand for the next 20 years, investor-owned utilities in vertically-integrated states, as well as and represents the largest wind municipal utilities and rural electric utility cooperatives. power PPA by an American city
to date.31 12. Partner with utility and/or third-party to procure renewable energy3132i Cities served by vertically-integrated utilities will need to partner with
their utility to procure renewable energy on their behalf. Examples Example: Georgetown, TX include establishing a “city-utility partnership” in which the utility The City of Georgetown, TX agrees to match the municipal energy demand with energy from a signed long-term contracts in renewable energy installation that is contracted for this purpose. 2014 and 2016 for wind and solar Cities can work with independent renewable power producers to energy, making Georgetown directly procure electricity through power purchase agreements Utility Systems one of the largest municipally-owned utilities in the (PPAs), depending on state legislation enabling third-party U.S. to supply its customers with ownership. Where this is an option, PPAs can accelerate local 100% solar and wind energy by renewable generation and stabilize municipal electricty prices due to 2017.32 long-term price contracts. Cities may also use their buying-power to negotiate for a special renewable energy option from their utility. Corporations such as Google and Facebook have successfully used this strategy and municipalities may be able to use this leverage as well.
31 Executive Office of the Mayor, District of Columbia. 2015. Mayor Bowser Announces Groundbreaking Wind Power Purchase Agreement. Retrieved from: https://mayor.dc.gov/release/mayor-bowser-announces-groundbreaking-wind- power-purchase-agreement 32 City of Georgetown, Texas. 2015. Georgetown Utility to Be Powered by Solar and Wind Energy by 2017. Retrieved from: https://georgetown.org/2015/03/18/georgetown-utility-to-be-powered-by-solar- 63 and-wind-energy-by-2017/
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13. Purchase renewable energy on-site (e.g., on-site solar)33 Cities may also choose to install renewable energy systems directly Example: Sacramento, CA on municipal buildings and facilities. For this option to be financially The City of Sacramento, a city feasible, cities will likely rely on enabling state legislation, including: with a municipal utility, leveraged 1) tariffs that compensate distributed renewable energy generation a PPA in 2011 to install solar- powered electric vehicle chargers (e.g., net-metering, value-of-solar tariff, etc.), and 2) a PPA with a for city vehicles.33 third party. Cities should investigate the status of distributed generation tariffs and third-party ownership options with their utility and, if unavailable, lobby for policies that allow this type of arrangement.
GROUP 3. UTILITY-FOCUSED STRATEGIES Example: Buffalo, NY The City of Buffalo plans to host Cities generally have little direct control over the utility that serves them. an annual city, state, and utility Only cities with municipal utilities (depending on the municipal utility coordination meeting to improve governance structure) have direct decision-making authority over their energy supply planning and joint utility. Nonetheless, there are a number of strategies a city can take to goal-setting.34 either directly or indirectly influence the utility’s energy supply.
14. Engage the utility in setting energy goals3435 Some cities may find that they can engage their electric utility directly in discussions on strategic planning and energy goals for the city. While not all utilities may be receptive to this, it can be an effective Example: Columbia, MO strategy to align goals for renewable energy targets, state policies In 2004, voters in Columbia, MO (e.g., tariffs to compensate distributed renewable energy), approved a proposal to adopt a community renewable energy programs, or processes where the city renewable portfolio standard for and utility intersect (e.g., interconnection and permitting processes). the city’s municipal utility, which was revised in 2014 to establish a goal of 30% by 2028.35 15. Establish a local renewable portfolio standard (RPS) RPS in most states apply only to investor-owned utilities, and rarely to municipal utilities or rural electric utility cooperatives. Cities served by municipal utilities can choose to adopt similar or more ambitious
33 Government Fleet. 2011. City of Sacramento Fleet Installs Solar-Powered EV Chargers. Retrieved from: http://www.government- fleet.com/news/story/2011/12/city-of-sacramento-fleet-celebrates-solar-powered- ev-chargers.aspx 34 New York Power Authority. 2015. BuildSmartNY: Five Cities Energy Plans. Retrieved from: https://s3.amazonaws.com/nyclimatescience.org/BSFiveCities_Buffalo.pdf 35 Database of Incentives for Renewables and Efficiency. 2016. City of Columbia – Renewable Portfolio Standard. Retrieved from: 64 http://programs.dsireusa.org/system/program/detail/113
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rules locally. Cities can adopt an RPS for the municipal utility through a city council resolution or a ballot initiative. Cities served by investor- owned utilities can lobby at the state level for a renewable portfolio standard or for higher RPS targets.
16. Approve the utility’s long-term energy generation plan36 Utilities regularly develop long-term energy plans (i.e., “integrated Example: Minneapolis, MN resource plans” or “energy generation plans”). A municipal utility’s The City of Minneapolis became energy generation plan may require approval from the city council, the first U.S. city to establish a city- depending on the utility’s governance structure. Cities served by utility partnership that shares power between the City and its municipal utilities can leverage this influence and establish a investor-owned utilities. The City collaborative strategic planning processes to ensure that renewable leveraged ongoing franchise energy is integrated into utility resource plans. For investor-owned agreement negotiations to begin utilities, these plans typically require approval from the state negotiating such a partnership. regulatory body (Public Utility Commission or Public Service The City-Utility Clean Energy Commission). Cities served by investor-owned utilities can engage in Partnership established joint state level proceedings, including rate cases, and lobby for renewable renewable energy goals for the energy goals to be integrated into the utilities’ generation plans. City and its investor-owned utilities and corresponded to a new 17. Direct the utility to conduct a feasibility study for renewable energy franchise agreement with terms (e.g., duration, fee structure, etc.) procurement that are contingent on progress Many utilities can build and own renewable energy installations, and towards those goals.36 cities can lobby for utilities to conduct a feasibility study on renewable energy procurement. Cities with municipal utilities may be able to direct the municipal utility to conduct a feasibility study on a transition to renewable energy, particularly in cases where cities maintain jurisdiction over the municipal utility budget and can approve funding for a feasibility study. Cities can also faciliate renewable energy procurement for any utility type by leasing land or public buildings where renewable energy generation can be sited.
18. Approve or negotiate utility procurement contracts for renewable energy As municipal utility procurement contracts expire, opportunities arise for cities to influence or approve new contracts from renewable sources. In many cases, the city council maintains authority over contracts above a certain threshold value. Contracts may be
36 Community Power Minnesota. 2016. The Minneapolis Clean Energy Partnership. 65 Retrieved from: http://www.communitypowermn.org/partnership
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negotiated with wholesale power providers or through PPAs. Cities Example: Las Vegas, NV served by rural electric cooperatives do not have jurisdiction to In 2015, the City of Las Vegas and approve or negotiate procurement contracts, but may be able to NV Energy (the investor-owned support the utility cooperative in exploring procurement options. For utility serving the City) announced example, many rural electric utility cooperatives cite restrictions in a partnership in which the utility long-term “Buy-all, sell-all” (also known as “all-requirements”) will supply 100% of the municipal contracts that have committed the utility to a certain power supplier energy demand with renewable energy from a local solar plant.38 for several decades and prevent them from procuring renewable energy. Utility cooperatives may not be aware of flexibility in these contracts with regards to distributed renewable energy generation.37 For investor-owned utilities, decisions on energy procurement are Example: Los Angeles, CA heavily regulated by the state; cities can influence this processs by The Los Angeles’ municipal utility, intervening in state-level utility regulatory proceedings. LADWP, is piloting its Solar Rooftops Program. The program 19. Approve or pilot a utility-owned rooftop solar program3839 brings solar benefits to customers Certain utilities may be able to pilot utility-owned rooftop solar—a who have previously been program in which the utility leases roof space from participating inhibited by the high cost of installing solar panels by requiring residents, and provides the homeowner a credit for the electricity no up-front costs and designating generated. Utility-owned rooftop solar programs present priority enrollment to zip codes opportunities to increase distributed generation and increase the with lower rates of solar share of renewable energy in a utility’s energy supply. For cities participation. Participating served by municipal utilities, the city or town council may have the homeowners lease their roof space authority to approve such a program for the municipal utility, or in and in return receive a $360 check some cases, approval from the state’s public utilities commission may annually or $30 monthly utility be required. Cities served by investor-owned utilities and rural credits on their power bill over a electric cooperatives do not have the authority, but may choose to 20-year period.39 lobby for such programs at a state level or for the utility’s service territory. Utility-owned rooftop solar; however, can be a key point of
37 Midwestern Energy News. 2016. Small utilities more likely to seek out renewables after FERC ruling. Retrieved from: http://midwestenergynews.com/2016/07/05/small- utilities-more-likely-to-seek-out-renewables-after-ferc-ruling/ 38 Utility Dive. 2016. Nevada PUC greenlights Las Vegas, NV Energy partnership in plan to go 100% renewable energy. Retrieved from: http://www.utilitydive.com/news/nevada-puc-greenlights-las-vegas-nv-energy- partnership-in-plan-to-go-100/414600/ 39 Los Angeles Department of Water and Power News. 2016. LADWP Launches the Solar Rooftops Program Providing the Benefits of Solar Energy to More Angelenos. 66 Retrieved from: http://www.ladwpnews.com/go/doc/1475/2901302/
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contention if the utility-ownership model does not allow for individuals to also own solar generation.40
20. Leverage taxing authority over the utility Cities may have some taxing authority over investor-owned utilities (this is not true for municipal utilties or rural electric utility cooperatives, as these are tax-exempt entities). This authority varies by state: states determine which properties a municipality is permitted by law to tax. Cities should familiarize themselves with their taxing authority over utility property, which could include utility- owned power plants and utility infrastructure (e.g., poles and wires).
Cities with taxing authority over their investor-owned utility may wish to leverage this authority to raise revenue for clean energy programs. This process may involve reclassifying utility property into a separate property tax classification. Such actions may or may not be legal, depending on state and municipal authority, and specific reclassification. For example, it is not legal to discriminate against certain business property in favor of other business property in assessing property taxes.
21. Renegotiate city-utility franchise agreement41 Cities served by investor-owned utilities may have utility franchise Example: Boulder, CO agreements, which are is long-term contracts that outline The City of Boulder has been researching and pursuing requirements for the utility to use the city’s public rights of way. Cities municipalization since 2010, in the with expiring franchise agreements have an opportunity to leverage context of an expiring franchise this for energy supply transformation. Utility franchise agreements agreement. In 2016, five years after have typically been long-term contracts with a 20-year duration. City Boulder residents voted in favor of staff should investigate if such an agreement exists and if so, identify forming a municipal electric utility, the terms and expiration date. the City continues to explore a more detailed plan to create one. Expiring franchise agreements present an opportunity for This has included partnering with municipalities to negotiate a number of terms. These include, for the utility on renewable energy goals. Even if the City remains with its IOU, the municipalization discussions have provided a point 40 U.S. Department of Energy. Utility Ownership of Rooftop Solar PV. Retrieved from: http://solaroutreach.org/wp- of entry and leverage into utility content/uploads/2015/11/Final_UtilityOwnedRooftopSolar.pdf discussions on municipal energy 41 City of Boulder, Colorado. 2016. Boulder, Xcel Energy Acknowledge Settlement priorities.41 Discussions. Retrieved from: https://bouldercolorado.gov/newsroom/june-8-2016- boulder-xcel-energy-acknowledge-settlement-discussions 67
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example: 1) shortening the contract duration, 2) allowing for early termination on certain conditions, and 3) altering the fee structure to help fund renewable energy or energy efficiency programs (see Minneapolis example).
22. Establish a city-utility partnership to share decision-making power Example: Austin, TX Cities may establish a city-utility partnership with their investor- In 2012, Austin’s municipal utility, owned utility to create a framework for shared city-utility renewable Austin Energy, became the first energy goals. Such a partnership could also establish a decision- utility in the U.S. to offer a “value making board with city and utility members and form an energy of solar” tariff to residential electricity customers, which advisory committee. In tandem, cities can renegotiate a franchise incorporates environmental agreement that includes meeting the city-utility partnership goals. compliance costs and has been Cities could establish a comparable partnership with rural electric designed to “reflect the value of utility cooperatives, or even with municipal utilities. local solar generation” Austin Energy customers with on-site PV 23. Municipalize the local electric grid42 systems receive a credit of 10.6 Cities served by investor-owned utilities may seek to municipalize the cents per kWh.42 local electric grid. This is a process in which a city establishes a municipal utility by purchasing the local electric grid from the utility.
Cities may seek this route out of dissatisfaction with their utility’s level of support for renewable energy; they may be enthusiastic about creating their own municipal utility and the options this would present; or they may seek to leverage municipalization to gain negotiating power with their investor-owned utility. Municipalization can also have three advantages in revenue requirements: (1) there would be no objective to earn a profit for shareholders (unlike IOUs), (2) the city would have access to tax-exempt debt for renewable energy facilities, and (3) there could be an option to take over inexpensive hydropower projects licensed by FERC (if within the service geography of the city) when their licenses expire. There are only a few select cases in the United States of cities pursuing municipalization of the electric grid, so the process is relatively uncharted.
42 City of Austin. 2016. Value-of-Solar Rider. Retrieved from: http://austinenergy.com/wps/wcm/connect/c6c8ad20-ee8f-4d89-be36- 68 2d6f7433edbd/ResidentialValueOfSolarRider.pdf?MOD=AJPERES
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24. Appoint or approve utility decision-makers In cities with municipal utilities, a city council may have the authority to directly appoint the utility’s board members. Cities with this authority can leverage this influence to ensure that the key utility decision-makers prioritize renewable energy goals.
25. Engage in state public utility commission (or equivalent agency) proceedings Where direct influence is not within a city’s jurisdiction, cities can exert indirect influence at a state level through by engaging in state- level public utility commission proceedings. These proceedings define many of the nuances to rules governing utilities that impact a city’s ability to meet its renewable energy goals. Rate cases determine the rates and returns that the utility can charge and cities should become more directly engaged in commenting and tracking these proceedings. While the vast majority of cities will not have staff expertise for this type of engagement there are non profits and other experts that can be engaged, and whose interests can align with a city’s.
Cities should also seek to engage with the ratepayer advocate office or the attorney general’s office. These offices serve the official role of intervening and participating in utility ratemaking proceedings on behalf of ratepayers. Historically, these agencies have taken the position that ratepayers should not be subject to undue increases in costs, sometimes arguing against renewable energy goals and programs for this reason. However, many cities are now developing goals for their energy supply that extend beyond keeping electricity rates low, and consider other priorities like sustainability. Cities should therefore engage with the ratepayer advocate offices and attorney general’s offices involved in public utility proceedings in order to ensure that these offices represent the emerging interests of ratepayers, including advocating for renewable energy policies and programs.
69
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Example: Albany, NY SECTION 3 Supported by the New York Power Authority, Albany, NY has added a Citywide Energy Manager position ORGANIZING FOR responsible for implementation of the Albany Energy Plan. The plan TRANSFORMATION has a joint focus on improving energy efficiency and Large-scale energy transformation will require engagement and benchmarking, and on contribution from residents, small business organizations, as well as implementing the long-term leadership from local institutions, industry, and government. To achieve energy supply strategy determined this level of buy-in, municipal governments will need to consider through Albany’s current energy strategies for building the knowledge and staff capacity necessary to 43 planning process. drive change. Identifying core team members and critical local partners is therefore a crucial step in organizing for energy supply
transformation.43 44
Example: San Diego, CA To achieve the ambitious goal of A. CITY STAFFING STRATEGIES transitioning to 100% renewable Cities should identify the implementation team that will coordinate energy supply by 2035, San Diego energy supply transformation studies and strategies, as well as maintain created a new Sustainability Program Manager position. This communication with stakeholders and project partners. In some cities, staff member oversees an this role falls to a single staff member or a team of staff members. Other interdisciplinary team of staff from cities might convene a dedicated steering committee to advise city numerous city departments, and action, comprised of community representatives, business leaders, utility coordinates the implementation of representatives, industry experts, and city staff. City staff must have the the energy supply transition technical expertise to recognize key energy savings and supply transition programs and policies, as well as opportunites, inform development of new city regulatory policies or other climate action plan incentives, understand and intervene in public utility commission objectives. Additionally, this team proceedings, and be familiar with grid management processes. The is responsible for amending required expertise varies depending on the actions a city decides to take. policies, plans, and recommendations on an annual A steering committee composed of external stakeholders can be used to basis to keep pace with increase the technical capabilities among the group analyzing and technological and strategic providing advice about energy system transformation strategies. developments, and ensure that climate targets are met.44
43 New York Power Authority. Retrieved from: http://www.nypa.gov/innovation/programs/five-cities-energy-program 44 City of San Diego. 2016. Climate Action Plan. Retrieved from: 70 https://www.sandiego.gov/sites/default/files/final_july_2016_cap.pdf
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26. Invest in city staff for municipal energy transformation When transitioning municipal energy supply, cities often choose to Example: Minneapolis, MN Minneapolis recently implemented assess municipal consumption and on-site municipal generation a Clean Energy Partnership, which opportunities internally. In most small cities, having a dedicated staff “will study, prioritize, plan, member serve as an energy manager helps ensure that this process coordinate, implement, market, is approached systematically, and that the municipality realizes track, and report on progress on maximum savings. Finding the resources to hire an energy manager clean energy activities.” Jointly can be a challenge, but this position often pays for itself through the staffed by municipal and utility implementation of energy-saving initiatives. decision-makers, this partnership sets renewable energy, energy 27. Expand staff for community-wide energy transformation45 efficiency, reliability, and equity Cities considering community-wide energy transformation will need goals, and provides planning, coordination, and accountability more than a single energy manager to oversee the transition. For for meeting these goals. Funded in some cities, this means forming an interdepartmental working group part through the franchise fee, the comprised of existing staff to jointly lead the effort, and for others it partnership has an operational means building out a new department or section of an existing budget and some dedicated staff environment department to lead the energy transition process. to carry out these responsibilities.45 28. Establish a joint steering committee46 Cities can form a joint internal-external steering committee to coordinate or advise the transition process. External members often
include: 1) representatives of business associations, property Example: California (statewide) managers or large land owners; 2) academic or other research and Comprised of nearly 40 cities, development institutions; 3) staff from regional or state levels of counties, associations, councils of government; 4) representatives of community groups or government, special districts, and neighborhood associations; and (5) utility representatives. Cities can nonprofit organizations in also use steering committees as an opportunity to embed other California, the Local Government Sustainable Energy Coalition important and related priorities into energy supply transformation. represents local interests on behalf of its members in regulatory
proceedings and for program development for locally generated renewable energy and energy efficiency. The network provides collaborative learning opportunities and works together to shape long-term strategies for sustainable energy.46 45 City of Minneapolis. 2016. Minneapolis Clean Power Partnership. Retrieved from: https://cleanenergypartnership.files.wordpress.com/2015/05/cep-15-16-final-work- plan-attachment-b.pdf 46 Local Government Sustainable Energy Coalition. Retrieved from: 71 http://www.lgsec.org/about
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Example: Seattle, WA The City of Seattle released its B. PARTNERSHIPS AND NETWORKS Equity & Environment Agenda in 2016, which identifies community- Collaboration with external partners can provide resources, expertise, developed goals and strategies to and staffing support for cities to achieve ambitious energy address inequalities through transformation goals. Nonprofit and private sector partnership, for sustainability efforts. As part of example, can support energy planning, research and development, and this work, the Seattle Office of pilot projects. Networks can provide opportunities to share best practices Sustainability & Environment and common strategies through peer-to-peer learning. They can also worked closely with nine major, help build coalitions and advocate for state and federal policy. historically white-led environmental organizations to 29. Partner for climate and energy planning47 develop “Ally Commitments,” to Cities may choose to partner with a nonprofit organization to help prioritize racial justice in their develop citywide energy plans. When additional expertise and work. These commitments include resources are needed, a representative from a nonprofit organization efforts within each organization to may be able to serve on a city energy task force or energy working rethink operating processes to group. Nonprofit partnerships can provide valuable support and advance racial equity, and external efforts to improve networks to engage diverse community stakeholders. In some cases, community engagement, a nonprofit organization representing stakeholders from private and communication, program design, public sectors may be established to collaborate with the city on and partnerships citywide.47 climate and energy planning.
30. Partner to integrate equity into energy supply transformation48 Example: Austin, TX Many cities aim to move towards a clean energy supply while also The City of Austin, along with its improving equity for residents. When planning for energy supply municipal utility, the chamber of transformation, cities can partner with community-based commerce, and the Environmental organizations to include neighborhoods and communities Defense Fund, partnered with the traditionally underrepresented in planning processes. Cities can Pecan Street Project to create an “Energy Internet” smart grid provide financial or other support to these organizations to facilitate demonstration project on a 711- their participation in planning meetings and to help with stakeholder acre mixed-use development area. outreach. For further information on incorporating equity into The pilot project tested smart grid energy supply transformation, see Appendix on page 52. systems including high density solar PV; home energy monitoring systems; a smart meter research network; energy management gateways; distributed generation; electric vehicles with Level 2 charge systems; smart 47 thermostats; and other grid City of Seattle. Equity & Environment Agenda Ally Commitments. Retrieved from: https://www.seattle.gov/Documents/Departments/OSE/EEA_Ally_Commitments.pdf modernization systems.48 48 Pecan Street Project. 2011. Energy Internet Demonstration. Retrieved from: http://www.pecanstreet.org/wordpress/wp-content/uploads/2011/02/RFI- 72 Pecan_St_Project1.pdf Pathways to 100 Page | 42
31. Partner to advance research and development Cities can also partner with private firms to run pilot projects, such as testing new technologies and grid mechanisms. These partnerships enable cities to leverage private sector interests and resources while developing best practices around grid management and distributed generation, and ensure that consumers benefit in the process. Private sector partnerships can help cities stay up-to-date on best practices and new technologies for energy generation and management as the market grows.
32. Partner to spur renewable energy investment Cities can encourage private sector energy procurement by raising Example: Boston, MA awareness through energy-tracking ordinances, demonstrating The City of Boston worked with a public support for clean energy goals, or even encouraging Boston-based philanthropic funder, The Barr Foundation, to innovative procurement arrangements through prizes and other assemble the Boston Green incentives. Ribbon Commission (GRC), which is co-chaired by the mayor and 49 33. Join a city network and share lessons learned comprised of business, Cities may seek support from city networks to share lessons learned institutional, and civic leaders in and best practices in planning and implementing strategies for city- Boston. Since its inception in 2007, level energy tranformation. For example, city networks (e.g., the the GRC has worked side-by-side Carbon Neutral Cities Alliance, Urban Sustainability Directors with the City of Boston on its Network, C40, and others) can provide support in developing tools climate planning. The GRC and standards to measure progress towards energy goals; recently structured a Renewable Energy Leadership Prize that advocating for policies at the state, regional, and federal levels; or spurred private sector investment providing access to funding and resources for city-led projects. in a number of new renewable 49 generation projects.
49 Barr Foundation. Green Ribbon Commission. Retrieved from: 73 https://www.barrfoundation.org/partners/green-ribbon-commission
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CONCLUSION A rapidly growing vanguard of U.S. cities have committed to dramatically transforming their energy supply systems away from fossil fuel and toward zero carbon or renewable sources. A handful of cities have achieved a 100% renewable energy supply, and over two dozen more have committed to 100% renewable energy goals. Others have targeted deep greenhouse gas emissions reductions (e.g., “80% by 2050” and carbon neutrality) that will require dramatic transformation of energy supply systems to achieve.
Many more cities are just setting out on this pathway. As cities explore the available options, they will find that there is no one-size-fits all strategy for energy supply transformation. How each city should approach energy transformation depends on the details of its energy landscape: the type of local distribution utility and state energy policies, among other factors. Assessing the impact of these variables and charting the most effective path forward is complex, and can require a lengthy process requiring specialized expertise.
Pathways to 100 seeks to help cities understand their energy landscape and identify strategies that are applicable to their utility and state policy context. This essential first step allows cities to narrow the list of potential strategies and focus on those that will be most effective in their unique utility and regulatory context. This resource is designed to help cities plan strategically but also move quickly towards action by identifying some of the staffing strategies, partnership models, and support networks that can help operationalize municipal commitments to energy supply transformation.
This guide is also designed to facilitate knowledge sharing, peer learning, and strategic program development for funders, non-profits, community organizations, and network organizations that support or complement the actions of city governments. By providing a common framework and language on energy supply transformation planning, cities and their partners can more easily identify commonalities and differences in context and hone in on the insights most applicable to them.
The sense urgency over climate change and the need to transition to cleaner sources of energy continues to grow in communities around the country. Many communities wish to move quickly beyond pilot projects and small-scale programs to transformational initiatives that can drive deep reductions in emissions and provide cleaner energy. By drawing on proven models and offering clear planning frameworks, this resource can help accelerate this process and amplify the scale and impact of city leadership.
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REFERENCES American Coalition of Competitive Energy Suppliers. Retrieved from: http://competitiveenergy.org/consumer-tools/state-by-state-links
American Planning Association. 2014. Planning for Solar Energy. Retrieved from: https://www.planning.org/publications/report/9117592/
American Public Power Association. 2015-2016 Annual Director & Statistical Report. Retrieved from: http://www.publicpower.org/files/PDFs/USElectricUtilityIndustryStatistics.pdf
Austin Energy. Green Power Options. Retrieved from: http://bit.ly/2nTjwiW (austinenergy.com)
Barr Foundation. Green Ribbon Commission. Retrieved from: https://www.barrfoundation.org/partners/green-ribbon-commission
Burlington, VT Public Works. Requirements for Electric Permit Submittal. Retrieved from: https://www.burlingtonvt.gov/uploadedFiles/BurlingtonVTgov/Departments/Public_Works/Constr uction_Permits/SolarPV_permit%20guidelines2012revision.pdf
Center for Energy and Environment. 2014. Minneapolis Energy Pathways: A Framework for Local Energy Action. http://www.ci.minneapolis.mn.us/www/groups/public/@citycoordinator/documents/webcontent/ wcms1p-121587.pdf
City of Austin. 2016. Value-of-Solar Rider. Retrieved from: http://austinenergy.com/wps/wcm/connect/c6c8ad20-ee8f-4d89-be36- 2d6f7433edbd/ResidentialValueOfSolarRider.pdf?MOD=AJPERES
City of Boulder, Colorado. 2016. Boulder, Xcel Energy Acknowledge Settlement Discussions. Retrieved from: https://bouldercolorado.gov/newsroom/june-8-2016-boulder-xcel-energy-acknowledge- settlement-discussions
City of Georgetown, Texas. 2015. Georgetown Utility to Be Powered by Solar and Wind Energy by 2017. Retrieved from: https://georgetown.org/2015/03/18/georgetown-utility-to-be-powered-by-solar- and-wind-energy-by-2017/
City of Minneapolis. 2016. Minneapolis Clean Power Partnership. Retrieved from: https://cleanenergypartnership.files.wordpress.com/2015/05/cep-15-16-final-work-plan- attachment-b.pdf
City of Portland Bureau of Planning and Sustainability. “Climate Action Through Equity: The integration of equity in the Portland/Multnomah County 2015 Climate Action Plan.” July, 2016. Retrieved from 75 https://www.portlandoregon.gov/bps/article/583501
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City of San Diego. 2016. Climate Action Plan. Retrieved from: https://www.sandiego.gov/sites/default/files/final_july_2016_cap.pdf
City of Seattle. Equity & Environment Agenda Ally Commitments. Retrieved from: https://www.seattle.gov/Documents/Departments/OSE/EEA_Ally_Commitments.pdf
City of Somerville. 2016. SustainaVille. Retrieved from: http://archive.somervillema.gov/sustainaville/solarize
Community Power Minnesota. 2016. The Minneapolis Clean Energy Partnership. Retrieved from: http://www.communitypowermn.org/partnership
Database for State Incentives for Renewables & Efficiency. July 2016. 3rd Party Solar PV Power Purchase Agreement (PPA). Retrieved from: http://ncsolarcen-prod.s3.amazonaws.com/wp- content/uploads/2014/11/3rd-Party-PPA.pdf
Database for State Incentives for Renewables & Efficiency. Retrieved from: http://www.dsireusa.org/resources/detailed-summary-maps/
Database of Incentives for Renewables and Efficiency. 2016. City of Columbia – Renewable Portfolio Standard. Retrieved from: http://programs.dsireusa.org/system/program/detail/113
Database of State Incentives for Renewables & Efficiency. April 2017. Retrieved from: http://ncsolarcen- prod.s3.amazonaws.com/wp-content/uploads/2017/04/DSIRE_Net_Metering_April2017.pdf
Database of State Incentives for Renewables & Efficiency. October 2016. Retrieved from: http://www.ncsl.org/research/energy/net-metering-policy-overview-and-state-legislative- updates.aspx#sharedrenew
Executive Office of the Mayor, District of Columbia. 2015. Mayor Bowser Announces Groundbreaking Wind Power Purchase Agreement. Retrieved from: https://mayor.dc.gov/release/mayor-bowser- announces-groundbreaking-wind-power-purchase-agreement
Government Fleet. 2011. City of Sacramento Fleet Installs Solar-Powered EV Chargers. Retrieved from: http://www.government-fleet.com/news/story/2011/12/city-of-sacramento-fleet-celebrates-solar- powered-ev-chargers.aspx
Local Government Sustainable Energy Coalition. Retrieved from: http://www.lgsec.org/about
Los Angeles Department of Water and Power News. 2016. LADWP Launches the Solar Rooftops Program Providing the Benefits of Solar Energy to More Angelenos. Retrieved from: http://www.ladwpnews.com/go/doc/1475/2901302/
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Meister Consultants Group. Institutional Renewable Energy Procurement. Retrieved from: http://www.greenribboncommission.org/wp-content/uploads/2017/03/Institutional-Renewable- Energy-Procurement-Guidance-1.pdf
Midwestern Energy News. 2016. Small utilities more likely to seek out renewables after FERC ruling. Retrieved from: http://midwestenergynews.com/2016/07/05/small-utilities-more-likely-to-seek- out-renewables-after-ferc-ruling/
National Conference of State Legislatures. 2016. State Renewable Portfolios Standards and Goals. http://www.ncsl.org/research/energy/renewable-portfolio-standards.aspx
National League of Cities: http://www.nlc.org/local-government-authority
National Renewable Energy Laboratory. 2013. Benchmarking Non-Hardware Balance-of-System (Soft) Costs for U.S. Photovoltaic Systems, Using a Bottom-Up Approach and Installer Survey. Retrieved from: http://www.nrel.gov/docs/fy14osti/60412.pdf
National Rural Electric Cooperative Association. In collaboration with Clean Energy Collective. 2016. The Community Solar Playbook. Retrieved from: https://www.cooperative.com/public/bts/renewables/Pages/community-solar-playbook.aspx
Natural Resources Defense Council. 2016. Electric and Gas Decoupling in the U.S. https://web.archive.org/web/20161207161322/https://www.nrdc.org/experts/samantha- williams/evidence-decoupling-spurs-energy-efficiency-investment
New York Power Authority. 2015. BuildSmartNY: Five Cities Energy Plans. Retrieved from: https://s3.amazonaws.com/nyclimatescience.org/BSFiveCities_Buffalo.pdf
New York Power Authority. Retrieved from: http://www.nypa.gov/innovation/programs/five-cities- energy-program
Northwest Sustainable Energy for Economic Development (Northwest SEED). 2011. The Solarize Guidebook: A community guide to collective purchasing of residential PV systems. Retrieved from: http://www.nrel.gov/docs/fy12osti/54738.pdf
Pecan Street Project. 2011. Energy Internet Demonstration. Retrieved from: http://www.pecanstreet.org/wordpress/wp-content/uploads/2011/02/RFI-Pecan_St_Project1.pdf
San Francisco Water Power Sewer. GoSolarSF. Retrieved from: https://sfwater.org/modules/showdocument.aspx?documentid=6393
Seattle Department of Construction and Inspections. 2015. Renewable Energy and Solar-Ready Roofs for Commercial Buildings. Retrieved from: http://www.seattle.gov/DPD/Publications/CAM/Tip422.pdf
Shared Renewables HQ. Retrieved from: http://www.sharedrenewables.org/community-energy-projects/ 77
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Solar Electric Power Association (SEPA). Retrieved from: http://www.utilitydive.com/news/survey-over- half-of-solar-installers-do-not-offer-tpo-financing-or-ppas/411413/
Sustainable Westchester. 2016. New York State's First Community Choice Aggregation Program Moves Ahead as Sustainable Westchester and 17 Municipalities Award $150M Energy Contract to ConEdison Solutions. Retrieved from: http://www.prnewswire.com/news-releases/new-york- states-first-community-choice-aggregation-program-moves-ahead-as-sustainable-westchester- and-17-municipalities-award-150m-energy-contract-to-conedison-solutions-300233396.html
U.S Department of Energy. 2017. Community Choice Aggregation. Retrieved from: https://web.archive.org/web/20170315071225/http://apps3.eere.energy.gov/greenpower/markets/ community_choice.shtml
U.S. Department of Energy. 2016. Retrieved from: https://energy.gov/savings/city-philadelphia- streamlined-solar-permitting-and-fee-reduction
U.S. Department of Energy. Utility Ownership of Rooftop Solar PV. Retrieved from: http://solaroutreach.org/wp-content/uploads/2015/11/Final_UtilityOwnedRooftopSolar.pdf
Utility Dive. 2016. Nevada PUC greenlights Las Vegas, NV Energy partnership in plan to go 100% renewable energy. Retrieved from: http://www.utilitydive.com/news/nevada-puc-greenlights-las- vegas-nv-energy-partnership-in-plan-to-go-100/414600/
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GLOSSARY Aggregate net metering: A state policy allowing a single customer to apply credits earned from excess generation at one site where electricity is generated towards the electricity bill for a second geographically distinct account, also sometimes referred to as Virtual Net Metering.
“Buy all, sell all” contracts: Legal arrangement common among rural electric cooperatives. These contracts generally require distribution cooperatives to purchase all their electricity from a designated power provider (typically a generation and transmission cooperative). It has been debated whether these contracts restrict the ability of distribution cooperatives to pursue distributed renewable energy projects.
All requirements contracts: See “Buy all, sell all” contracts.
City-utility franchise agreement: A legal contract that outlines requirements for a utility to use the city’s public rights of way. This typically involves compensation paid to the city via a pass-through charge to ratepayers.
Community choice aggregation: A state policy that allows municipalities and counties to select an electricity provider (e.g., a renewable energy supplier) on behalf of their residents, businesses, and municipal accounts. Also known as municipal aggregation.
Community-shared renewables: A renewable energy facility that allows multiple people to subscribe and benefit from the energy output of the facility.
Community Solar: A variation of community shared renewables. See Community-shared renewables
Cooperative Utility: An organizational form for electricity utilities that are cooperatively-owned by customers. Each customer is a member-owner with one vote under the “one person, one vote” cooperative principle. Cooperative Utilities are governed by a board of directors, with only minimal oversight from state regulators.
Decarbonization: The transition from high-carbon emissions producing energy sources to low- or zero- carbon energy sources.
Decoupling: A state-level regulation that separates utility profits from the volume of direct energy sales. Utility revenue is instead predetermined by regulators, often based on recovery of fixed costs, and performance, and customer tariffs are set to meet this target. This regulation is designed to remove utility disincentives to adopting energy efficiency programs and other improvements that reduce customer demand.
Deregulated utilities: Utilities operating in a marketplace with retail competition. Many deregulated utilities provide either generation or transmission or distribution services, as opposed to Regulated Utilities (see below), which provide all three services in their territory.
Direct access tariffs: Allow large energy users in traditionally regulated energy markets to choose a supplier other than the distribution utility. 79
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Distributed energy generation: Small-scale generation resources that feed directly into distribution portions of the electric grid (e.g., rooftop solar).
Federal Energy Regulatory Commission (FERC): The independent federal agency that regulates interstate electricity transmission and wholesale electricity trading. FERC is also responsible for regulating natural gas and oil transportation.
Feed-in tariff: A policy that guarantees a long-term contract for renewable energy producers to sell all electricity generated back to the electric grid at a fixed price.
Green pricing program: A retail energy offering made by utilities to customers in which a voluntary premium is added to energy bills to reflect the environmental assets of renewable energy generation.
Green tariff: See Utility Renewable Tariff.
Integrated resource plans: A long-term strategy adopted by a utility designed to ensure the provision of reliable and low-cost electricity services to customers. These are sometimes referred to as energy generation plans.
Investor-Owned Utility: Utility that issues company stock and is responsible to shareholders. Heavily regulated at the state level.
Member-owner: See Cooperative Utility.
Municipal Utility: Utility that is owned by a municipal government.
Municipalization: The purchase of privately owned property by a municipality (e.g., the purchase of a local distribution utility).
Net metering: A state policy allowing customers to be compensated for renewable energy generation via a reduction on or credit to their normal utility bill.
Power Purchase Agreements: A contract to buy electricity over a given term. More recently, it is used to refer to the financing mechanism enabling a third party (such as a renewable energy developer) to build, own, and operate a renewable energy system on behalf of the customer upon whose roof the project is located. The host avoids the upfront and operating costs of renewable energy, and purchases the electricity generated from the third-party owner.
Public Utilities Commission (PUC)/Public Service Commission (PSC): A state agency that regulates the rates and services charged and provided by intrastate utilities.
Ratepayer advocate: A state-appointed entity that is responsible for regulating investor-owned utilities and representing the interests of utility customers within the state.
Regulated utilities: Utilities with a monopoly over generation, transmission, and distribution services in their territory. Often referred to as vertically integrated utilities. This contrasts with deregulated utilities (see above).
Renewable energy bulk purchasing program: A campaign involving bulk purchasing of renewable energy 80 systems to reduce costs for consumers. Pathways to 100 Page | 50
Renewable Energy Certificates (RECs): A tradable commodity representing the environmental benefits of electricity generated from renewable sources. In states with an RPS, RECs are purchased and sold as a compliance mechanism.
Renewable Energy Procurement: The purchase of power generated by a renewable energy system.
Renewable portfolio standard (RPS): A policy (typically state level) mandating that a certain percentage of electricity provided by the utility must be generated by renewable resources by a target year.
Retail electricity providers: Companies that distribute electricity to consumers in deregulated markets with retail competition.
Solar mandate: Legislation that requires solar PV or solar thermal systems installations, usually for a subset of new construction.
Solar ready requirement: Legislation that requires certain buildings (usually a subset of new construction) to reserve roof space for solar and make construction choices that save time and money if solar is installed later.
Solarize: See Renewable energy bulk purchasing program.
Transmission and Distribution Utility: Utilities that do not own any electricity generation assets but maintain ownership of the “wires.” See Deregulated Utilities.
Tariff: The conditions (including the rate) under which a customer is charged for the delivery and consumption of electric power, or the on-site generation of electricity. Tariffs are differentiated by customer class and types of energy service, including service for customers with on-site grid-connected energy generation.
Utility ratemaking proceedings: The process by which utilities and public utility commissions create utility tariffs.
Utility renewable tariffs: A special tariff offered by a traditionally regulated utility to allow customers to purchase energy from dedicated solar projects or portfolios of projects.
Value of solar tariff: A special tariff designed to compensate solar generation owners for the value of the energy they generate (similar to a Feed-in Tariff).
Vertically integrated: See Regulated Utility.
Virtual net metering: See Aggregate Net Metering.
Wholesale power transaction: The sale and purchase of electricity at the transmission level for delivery and resale to retail customers. Sellers of electricity are usually but not always generators. Buyers can be utilities, end users, commodity traders, or other parties.
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APPENDIX: FRAMEWORK FOR EQUITABLE ENERGY SUPPLY TRANSFORMATION
BACKGROUND:
This framework can help cities embed equity in city energy supply system transformation to low- or zero-carbon sources. It presents a set of questions grouped by theme for city staff to consider when developing plans and policies for transforming their energy supply to meet their climate goals.
The framework is part of a larger project providing research-based solutions for cities in two areas: (1) developing an energy systems primer that characterizes processes and practices of city energy supply transformation for city staff and funders and (2) conducting a needs assessment to determine what forms of support would be most valuable to help cities accelerate their energy system transformation. This framework is meant to inform and support both aspects of the project and provide an accessible resource for cities and funders for incorporating equity and energy transformation.
Box 4: Four Types of Equity
The framework uses the Urban Sustainability Directors Network (USDN) definition of four types of equity for sustainability planning, decision-making, and program and policy design.50 These four aspects of equity are often overlapping, but the different points of intersection between energy supply transformation and equity outlined in the framework will necessarily emphasize different types of equity. The USDN definitions are: Procedural (Inclusion): inclusive, accessible, authentic engagement and representation in the process to develop or implement programs or policies. Distributional (Access): programs and policies result in fair distributions of benefits and burdens across all segments of a community, prioritizing those with highest need. Structural: decision-makers institutionalize accountability; decisions are made with a recognition of the historical, cultural, and institutional dynamics and structures that have routinely advantaged privileged groups in society and resulted in chronic, cumulative disadvantage for subordinated groups. Transgenerational: decisions consider generational impacts and don’t result in unfair burdens on future generations.
50 Angela Park. “Equity in Sustainability: An Equity Scan of Local Government Sustainability Programs.” USDN, September 2014. 82
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FRAMEWORK: WHAT DOES EQUITABLE ENERGY TRANSFORMATION LOOK LIKE?
As communities across the country pursue aggressive renewables and greenhouse gas targets, the energy generation mix will evolve rapidly, driven by programmatic and policy shifts. The topics and questions below provide a framework for cities to use when planning for and implementing policies and programs to support their low-to no-carbon energy transition. The questions can help cities think through key ways to embed equity into a city’s energy transformation.
Internal structure: How is equity defined within the city and department? Cities should begin by developing an understanding of their current context, and any internal and public-facing goals considering diversity, access, and inclusion. These existing objectives and values can be translated into larger programmatic efforts. Framing questions for internal discussions and dialogue can include: Is equity part of the internal workplace? Does the city have diversity and inclusion policies or goals for recruiting and retaining members of the workplace? Are staff encouraged – or required – to consider equity in their internal departmental processes? What equity training do city staff and partners have? What frameworks do they use for training? Are departments benchmarked based on their progress toward equity training and improving internal outcomes? Are internal equity frameworks or the training applied to the implementation of externally- facing programs for residents and businesses?
Decision-making: How does the city prioritize and make decisions about its energy policy and planning? Sustainability or environment department staff, other city departments, elected officials, and stakeholders may all have differing levels of power and influence on decisions surrounding energy supply policy. An understanding of these dynamics is crucial when setting new targets or goals. Considerations include: Is equity part of the city’s decision-making process for energy transformation? • How is equity defined? • What are the city’s goals and strategies for including equity, if any? • Is the city’s leadership supportive of equity goals? Does the city have a comprehensive plan for energy transformation or climate? If yes, do these plans include equity? • Is equity or energy transformation part of broader city plans or priorities? • In cases where priorities may conflict (e.g. cost effectiveness vs. equitable access), does the city have a way to prioritize? What data or analysis does the city use to inform energy transformation decisions?
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Participation in decision-making: Who can participate in decision-making processes? In addition to gaining an understanding of the public officials who influence decision-making, cities should also consider ways to engage the public and other key stakeholders. For example, stakeholders and community groups can be highly engaged and participatory in consultations throughout policy development, or informed through outreach after policy decisions are largely complete. Joint decision-making or consensus-based efforts can offer a more inclusive power dynamic, increase community buy-in for energy programs, and produce positive outcomes. This level of effort requires staff commitment, time, and resources. Key questions to consider include: What does community or stakeholder consultation for energy transformation look like? Are engagement practices and processes transparent, accessible, and iterative (i.e. show learning and incorporation of feedback)? Does the city use practices and resources to address participation challenges (e.g. accessible location and timing, providing transportation to event and childcare on-site, communicating in non-technical jargon, providing translation services, etc.)? At which phases of program or plan development is there engagement? • Is there a process for ensuring residents or representatives of all backgrounds, neighborhoods, businesses, and community organizations can participate?
Program and policy design: How are clean energy programs and policies designed and who has access to participate? Energy programs and policies (e.g. community choice aggregation or district energy) can enhance inclusivity and access through collaboration in design, public advisory committee(s) during implementation, targeted use of funding, or a variety of other mechanisms. Discussion questions include: What approach does the city use to design programs? (e.g. collaborative, top-down, or bottom up approach) • Does the city work with or provide direct funding to community organizations to co- develop programs around clean energy? Is land ownership part of determining program participation? • Can those who do not own land or property participate? • How does the city allocate its land for clean energy projects? What is the cost to entry or to participate in a clean energy program? • Are subsidies or financing available to help those with lower incomes to participate? • How are up-front costs considered in determining participation? • Are the costs of the program spread evenly across the entire rate or tax base or structured progressively? Are the policies or programs considered within the jurisdiction of the city? • Can coordination at the regional or state level improve equity outcomes? • Is there a role for public-private partnerships, and if yes, is the partnership structured to ensure equitable outcomes?
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Beneficiaries: Who gets the benefits and are they distributed equitably? To support an understanding of project beneficiaries, cities can undertake a stakeholder mapping exercise to gain greater insights into how residents will interact with the proposed policy or program. The city can consider if environmental justice communities, communities of color, the elderly, low-income households, and other disadvantaged populations have been consulted and will benefit from the proposal, especially in cases where such action may be restorative from previous burdens. Questions to consider are: Does the program create local jobs, and if so how will people apply for and receive those jobs? Is workforce training or development part of a program? Who receives financial benefits of a program? Who receives environmental benefits and health benefits? Does the program consider and improve upon the location of past fossil fuel-based generation sources or other former harms? Are those who live near an energy source able to benefit from it? What is the reach of the energy benefits? Will the benefits change over time and if so, will this change who is impacted?
Burdens: Who bears the costs of energy generation and are they distributed equitably? To support an understanding of potential project burdens, the city can undertake a stakeholder mapping exercise to gain greater insights into how residents will interact with the proposed policy or program. A benchmarking exercise or interviews can also be completed with community organizations or city staff in jurisdictions with similar active programs. Questions to ask include: Who bears the financial costs? Who bears the health costs? Who bears the environmental costs? Does the program exacerbate or mitigate existing disparities such as the digital divide, gentrification, access to jobs, and income inequality? Will the burdens change over time and if so, will this change who is impacted?
Siting: Where are renewables or other generation sources or systems sited (generation, transmission, distribution, etc.), particularly larger projects? Cities should understand how and where energy and other infrastructure projects are sited, and where the benefits of such projects will flow within a community. Points of inquiry include: Does the city have processes that measure which neighborhoods host various municipal assets for power, as well as other environmentally impactful services (e.g. landfills, water sanitation facilities, major roadways and trucking routes)? What considerations are made in siting energy generation? • Is the highest and best use for the land considered? Over what timeframe? Can the local community directly access or make use of the generation? Who is consulted during the siting? Can impacted residents help inform the choice?
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Communication: How are energy transformation priorities communicated? Education and outreach are crucial during both energy policy development and implementation. Cities need to consider the reach of marketing and outreach campaigns, as well as the accessibility of their program messaging: Are diverse perspectives, cultural, and educational contexts taken into consideration when developing communication materials? What channels are used to communicate with citizens? Are translators and translations of materials available? Are the messengers utilized strong, trusted community voices?
Metrics: What data or analysis is used to measure success? Data is necessary to measure program success, but also to justify program development. Equity-based programs may conflict with traditional cost-effectiveness tests for energy and with other political priorities. Collecting and designing methods to demonstrate the holistic benefits of more equitable decarbonization programs is key for program sustainability and adoption. What types of data does the city collect or have access to? What methodology is used to measure qualitative and quantitative outcomes? Does the city have equity indicators? What is the current cost-effectiveness framework for community or utility programs, and does it include equity or societal considerations in its cost-benefit calculation? How is program success defined? Are co-benefits considered? How are health, environmental, and other societal outcomes documented?
Case Example: Los Angeles Department of Water and Power’s Solar Rooftops Program
The Los Angeles Department of Water and Power (LADWP) is the largest municipal utility in the country. In the first quarter of 2017, LADWP launched a new pilot program offering called Solar Rooftops.51 The program provides owner-occupied single story homes with rooftop solar PV systems at no-upfront cost to consumers. In exchange, the LADWP grid benefits from solar energy production and the city makes progress towards the Mayor’s goal of 35% renewable energy by 2020. Customers that allow the utility to lease their roof receive regular payments over a 20-year term.52 The program is expected to support 300-400 installations. The program also includes a job training component for installing solar panels, designed to address LADWP’s aging workforce. This case example explores how the program corresponds with the major themes of the equity framework.
51 Los Angeles Department of Water and Power. (2017) “Solar Rooftops.” Retrieved from: https://www.ladwp.com/ladwp/faces/ladwp/residential/r-gogreen/r-gg-commsolarprogram?_adf.ctrl- state=3gl6quao7_4&_afrLoop=519051941283307 52 Walton, Robert. (November 29, 2016). Utility Dive. “In push to 33% renewables, Los Angeles launched low-income rooftop solar program.” Retrieved from: http://www.utilitydive.com/news/in-push-to-33-renewables-los-angeles- launches-low-income-rooftop-solar-pr/431229/. 86
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Framework Element Program Element Internal Structure The City of Los Angeles committed to link its climate work with efforts to alleviate poverty and improve equity. The City’s Chief Sustainability Officer articulated that sustainability requires addressing the city’s income inequality.53 Program managers at LADWP shared that equity is something staff think about daily and they strive to help those in need while serving customers and meeting their renewable energy goals.54 Decision-making LADWP has a five-member Board of Commissioners that votes on utility rates, renewable energy projects, and other items.55 The City Council’s Energy and Environment Committee provides oversight and policy guidance to LADWP. Participation in The Board of Commissioners is appointed by the Mayor. These appointments are Decision-making approved by elected City Council members. Thus, the Commissioners are not directly elected, but the Commissioners’ meetings are public and allow for public input. The public interest is also represented by the Ratepayer Advocate, who supported pilot testing the program and thinking about new and innovative ways to serve customers. The program design process included consulting internal stakeholders, reviewing research on best practices from the Solar Electric Power Association (SEPA), and using surveys and focus groups to solicit customer opinions. Program and Policy The program is designed to serve the regions of the utility’s service territory that Design have received less benefits from solar. External outreach helped staff determine the program needed to be straight-forward in its structure and enticing to those with less disposable income. As such, participants’ utility accounts must be in good standing to participate, but the program requires no credit checks, up-front cost, or annual fees for participants. Customers are guaranteed compensation regardless of energy production and are not responsible for operations and maintenance of the panels. The utility maintains ownership of the solar system and leases roof space from the homeowner. The program was designed for owner-occupied single-family homes to ensure the benefits went directly to the occupants and streamlined local approval processes for rooftop PV on single-family homes. Beneficiaries The program is open to all residential customers, including customers on lifeline and low-income rates, with accounts in good standing. The utility has given priority enrollment status to zip codes that have low solar participation. The LADWP used its data to classify city zip codes into areas with low, medium and high participation. The program offers utility credits of $30 monthly, or a $360 check annually over a 20-year period. The utility owns and maintains the system.56 The program also creates local jobs for the Los Angeles community.
53 Dovey, Rachel. (April 2015) 100 Resilient Cities, cross-posted from Next City. “Why L.A.’s ambitious sustainability plan is different.” Retrieved from: http://www.100resilientcities.org/blog/entry/why-l.a.s-ambitious-sustainability-plan- deserves#/-_/. 54 Interview with David Castro, Henry Gallegos, and Michael Buck of LADWP’s Community Solar Program. (April 14, 2017). 55 LAWDP. (2017) Board of Commissioners – Who We Are. Retrieved from: https://www.ladwp.com/ladwp/faces/ladwp/aboutus/a-whoweare/a-wwa-boardofcommissioners 56 Los Angeles Department of Water and Power. (November 2016). “Rooftop Solar Program Guidelines.” Retrieved from: 87
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Framework Element Program Element Burdens The systems on homes in the Solar Rooftops program deliver all their energy to the grid, as opposed to offsetting participant bills through net metering. Thus, customers in the Solar Rooftops program are still contributing their share to the utility’s rate base. However, there are cost implications for non-participating customers due to the operating costs of the program, but the size of the pilot and the targeting of zip codes with lower solar penetration likely minimize impact. The financial returns from the utility solar ownership model, however, are lower than other potential solar PV financing options. Participants may receive a lower return on investment than other pathways for going solar.57 Siting The utility is prioritizing siting projects in neighborhoods with more limited access and participation in clean energy programs. It is pairing these efforts with offers for energy efficiency improvements. The utility also has provisions for the removal of systems at no cost to residents should they decide they no longer want to participate, move, or require roof upgrades. Communications The program collaborates with outreach efforts from a residential energy efficiency program to increase reach and leverage existing efforts. LADWP is tailoring marketing to reach target groups, leveraging community organizations as trusted messengers, and using emails and physical advertisements. Metrics The goal of the program is to, “expand access to solar savings for qualified LADWP residential customers who otherwise may not be able to use solar because of the high cost of installing panels.”58 The utility is also interested in improving its use of local solar energy as part of its carbon reduction strategy. The LADWP Commissioners approved an Equity Metrics Data Initiative in 2016 to track, measure, and report on how their programs and operations serve LA residents equitably by neighborhood.59
https://www.ladwp.com/cs/idcplg?IdcService=GET_FILE&dDocName=OPLADWPCCB549807&RevisionSelectionMetho d=LatestReleased 57 Estimates based on EnergySage analysis for a 4 kW system in Los Angeles for loan, PPA, and ownership models. Net savings ranged from $7,900 up to $21,000 for a best case scenario. This compares to $7,200 bill credits or cash over the 20-year term of the Solar Rooftops program. The Solar Rooftops program is for 2 kW to 3kW systems, meaning savings are also proportionately less based on system size than a 4 kW system. 58 Los Angeles Department of Water and Power. (2017) “Solar Rooftops.” Retrieved from: https://www.ladwp.com/ladwp/faces/ladwp/residential/r-gogreen/r-gg-commsolarprogram?_adf.ctrl- state=3gl6quao7_4&_afrLoop=519051941283307 59 Los Angeles Department of Water and Power. (August 2016). “Board of Water and Power Commissioners Approves Initiative to Ensure Equity of Water and Power Services across Los Angeles.” Retrieved from: http://www.ladwpnews.com/go/doc/1475/2875333/Board-of-Water-and-Power-Commissioners-Approves-Initiative- to-Ensure-Equity-of-Water-Power-Services-across-Los-Angeles 88
Pathways to 100 Page | 58 Agenda Item No:6.a
Planning, Parks & Library Committee Agenda Item Report Meeting Date: June 25, 2019 Submitted by: Deb Ritter Submitting Department: Item Type: Discussion Agenda Section:
Subject: Discuss Twining Valley - Preparing for Management (presentation and discussion)
Suggested Action:
Attachments: PRESENTATION-2019-06-25_PPL_TV_Management.pdf
89 Twining Valley Preparing for Management
90 Twining Valley - Preparing for Management Purpose
Provide an broad informational update to the Commissioners and the community concerning the Township’s preparation for taking over management of the Twining Valley property on December 1, 2019, which is approximately 5 months away.
91 Twining Valley - Preparing for Management Updates
- Status of Grants - End of Lease Preparations - Use of Clubhouse & Maintenance Garage - Property Management - Programs & Special Events
92 Twining Valley - Preparing for Management Update - Status of Grants
- Awarded - Montco 2040 Implementation Grant - $200,000 (20% match) - Pending - PA DCED Greenways, Trails & Recreation Program - Up to $250,000 (15% match) - Award announcement in 4th Quarter of 2019 - PA DCNR Community Conservation & Partnership Program (C2P2)* - Up to $250,000 (50% match) - Award announcement in 4th Quarter of 2019 - *Land & Water Conservation Fund (LWCF) - $500,000 to $1,000,000+ (50% match) - Application submission announcement in late June/early July 2019 93 - Award announcement in 2nd Quarter of 2020 - Award would affect construction timeline Twining Valley - Preparing for Management Update - End of Lease Preparations
- Lease ends November 30, 2019 - Inspections of Buildings - Inspection occurred in January - Follow-up will be in July - Links Management, Inc. Responsibilities - Letter with punch list was sent after the January inspection - All items must be completed by November 30, 2019 - Soil & Water Testing - Work is being scheduled
94 Twining Valley - Preparing for Management Update - Use of Clubhouse & Maintenance Garage
- Clubhouse survey completed - Building floor plan with dimensions will be provided - Includes identification of load bearing walls and utilities - Leasing the Clubhouse - Draft lease agreement/terms to be authored - Property needs to be marketed - Repairs to the building needed - quotes being sought - Replacement of exterior metal steps & repair of interior window wells - Maintenance Garage - Repairs to the building needed - quotes being sought - Replacement of garage doors (2) and entryway door - Interior demolition required (Township Staff) 95 - Relocate supplies from existing storage facility Twining Valley - Preparing for Management Update - Property Management
Need to Determine and Finalize:
- Allowable uses - Permitted access points - Placement of signage - How to regulate use and enforce rules - Police Department and Sitewatch - How to discourage golf play - Restroom placement - Maintenance plans 96 Twining Valley - Preparing for Management Update - Programs & Special Events
- Goal is to introduce residents to the property and its new use - First event will be in December 2019 - Cyclocross - bike race on a variety of surfaces with obstacles - Need to: - Finalize course layout - Apply for USA Cycling permit - Advertise - Cultivate network of partners - Open registrations - Solicit sponsors - In 2020, programs may include: - Birding, Plant Identification, Walking Club, Mountain Biking Clinic 97 - Volunteer Opportunities Twining Valley - Preparing for Management Budget Impacts
2019 Operating Budget
- Repairs to clubhouse and maintenance building
2020 Operating/Capital Budget
- Additional repairs, staffing and maintenance needs will be proposed and discussed - New revenue opportunities will be proposed and discussed
98 Questions?
Derek Dureka 99 P&R Director [email protected] (215) 643-1600 x3239 Agenda Item No:6.b
Planning, Parks & Library Committee Agenda Item Report Meeting Date: June 25, 2019 Submitted by: Deb Ritter Submitting Department: Item Type: Ordinance Agenda Section:
Subject: Discuss Amendments to Real Estate Sign Regulations
Suggested Action:
Attachments:
100 Agenda Item No:6.c
Planning, Parks & Library Committee Agenda Item Report Meeting Date: June 25, 2019 Submitted by: Deb Ritter Submitting Department: Item Type: Ordinance Agenda Section:
Subject: Amendment to the Greater Fort Washington District Ordinance Height Restrictions Map, UD #19-04
Suggested Action:
Attachments: PCMemo-20190621.pdf
CurrentGFWHeightMap.pdf
CurrentGFWProposedMap.pdf
101 1
UPPER DUBLIN PLANNING COMMISSION
Date: June 21,2019
To: Upper Dublin Board of Commissioners, Paul Leonard
From: Richard D. Barton, Community Planner and Zoning Officer
Subject: Amendment to Height Restrictions Map 1, GFW Zoning District (UD #19-04)
During their meeting on June 18, 2019 the Planning Commission reviewed an ordinance to amend the Height Restrictions Map associated with the recently-adopted Greater Fort Washington (GFW) zoning district. The amendment was recommended by the Board of Commissioners during the GFW public hearing on May 14, 2019.
The amendment will change the following three properties from the 50-foot height limit area to the 38-foot height limit area: 580 Virginia Drive (developed), an adjacent vacant parcel owned by the Township, and the vacant parcel at 585 Camp Hill Road. During the public hearing, a concern was raised that if a taller building was constructed on the comparatively higher elevation of 585 Camp Hill Road, it would dominate the landscape. The change will keep nearly all properties adjacent to residential districts to a maximum building height of 38 feet, effectively three stories tall.
One question raised by the Planning Commission was whether the height of the Founders Building at 580 Virginia Drive would comply with the 38-foot height limit Our records indicate the building is three stories tall, less than 38 feet, and compliant.
The Planning Commission unanimously recommended that the Board of Commissioners adopt the proposed amendment to the Height Restrictions Map for the GFW District. The public hearing is scheduled for Tuesday, August 13 at 6:30 pm.
Michael Cover, Chairman Gary Weaver, Vice-Chairman Dr. Paul D. Halpern Robert Winegrad Glenn Griffin Priscilla McDonald Roger J. Willcox 102 2
C: Paul Leonard, Township Manager (by email only) Deb Ritter (by email only) Tom Fountain, PE (by email only) Gil High, Township Solicitor (by email only) Upper Dublin Planning Commission members (by email only)
Michael Cover, Chairman Gary Weaver, Vice-Chairman Dr. Paul D. Halpern Robert Winegrad Glenn Griffin Priscilla McDonald Roger J. Willcox 103 SUSQUEHANNA
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