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HomeMy WebLinkAboutVI. COW Agenda Item EECBG Program Mount Prospect Village of Mount Prospect Mount Prospect, Illinois ~ INTEROFFICE MEMORANDUM FROM: MICHAEL E. JANONIS, VILLAGE MANAGER MICHAEL DALLAS, ADMINISTRATIVE ANALYST MAY 22, 2009 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT (EECBG) PROGRAM TO: DATE: SUBJECT: BACKGROUND Recently, the United States Department of Energy (DOE) notified the Village of Mount Prospect that it is eligible to receive $489,600 as a direct formula grant via the Energy Efficiency and Conservation Block Grant (EECBG) Program. Under the program, any municipality with at least 35,000 residents was given some level of funding based on a formula (70% resident and 30% daytime population). Authorized under the Energy Independence and Security Act of 2007 (Title V, Subtitle E) and funded by the American Recovery and Reinvestment Act (ARRA) of 2009, the program has three main objectives: (1) reduce fossil fuel emissions; (2) reduce total energy use; and (3) improve energy efficiency in the building, transportation, and other applOpriate sectors. The primary requirements under the grant include: 1. Submit an Energy Efficiency and Conservation Strategy (EECS): The strategy must outline the organization's energy efficiency goals and objectives, strategies to meet the goals, and metrics to report jobs created, energy saved, and greenhouse gas emissionsdecreased. 2. Reporting: a. Annual Report: an annual report must be submitted to the DOE within 2 years of receiving grant and until the project is completed (1). Status of implementation strategy (2). Assessment of energy efficiency gains (as practicable) (a). Jobs created and/or retained (b). Energy savings on a per dollar invested basis (c). Renewable energy capacity installed (d). Greenhouse gas emissions reduced (e). Funds leveraged b. Quarterlyfinancial and performance progress (perthe ARRA) reports are also required. 3. Regionalism requirements: a. The applicant must take into account what adjacent municipalities are doing b. The applicant must coordinate and share information with the State 4. Buy American: According to the ARRA, any project for the construction, alteration, maintenance, or repair of a public building or public work must use iron, steel, and manufactured goods produced/manufactured in the US (work and building are defined; there is a waiver exception) 5. Prevailing Wage: contractors and subcontractors must prove that their employees are being paid the federal prevailing wage for the type of work being conducted Energy Efficiency and Conservation Block Grant Program May 22, 2009 Page 2 The grant application is due to the DOE on June 25, 2009. If the Village submits an EECSat the time of application with the other required materials, it can receive all of its funds once the application is approved. If it only submits the application and materials, but not the EECS, it can receive $250,000 of the total grant, but it must submit the EECS within 120 days of receiving the initial award. All funds must be obligated within 18 months and expended within 36 months of receiving the award(s). The list of eligible activities or projects under the EECGB Program is very broad and includes: · Development and implementation of the EECS · Technical consulting services to assist in development ofthe EECS · Residential and commercial building energy audits · Establishing financial incentive programs for energy efficiency improvements · Provision of grants to nonprofits and government agencies for energy efficiency retrofits · Energy efficiency and conservation programs for buildings and facilities within municipality (design and operate program, public education, measurement and verification protocols) · Programs to conserve energy used in transportation (flex time, satellite work center, zoning guidelines, bike lanes and pathways, traffic signal synchronization) · Building codes and inspection services to promote building energy efficiency · Material conservation program, including source reduction and recycling · Replacement of traffic signals and street lighting with LEDs or same/better technology · Installation of solar or wind devices, fuel cells or biomass on/in government building · Any other activity approved by DOE There are a couple of limitations on the usage of funds and they include: . Administrative expenses are capped at $75,000 (excluding the cost of meeting the reporting requirement) · Revolving loan funds are capped at $250,000 · Sub-grants to non-governmental organizations are capped at $250,000 · Funds cannot be used for any casino or gambling establishment, aquarium, zoo, golf course, or swimming pool DISCUSSION Clearly, the EECBG Program provides an excellent opportunity for the Village of Mount Prospect to develop an energy efficiency and conservation strategy for its public facilities, as well as the community. Currently, no Village energy efficiency or conservation plan exists 1 and there is no staff member currently qualified to develop such a document or the required mechanisms to measure an initiative's impact. Staff believes energy consulting firms are available to fill these voids and can guide the Village through the Program's application and reporting process. As noted above, consulting services are eligible expenses under the grant. More importantly, though, the funding available to the Village under the EECBG Program could 1 In the spring of 2008, the Village adopted the Metropolitan Mayors Caucus Greenest Region Compact. This is not a plan, but an agreement among local area communities to improve the region's air, water and land, reduce greenhouse gases, minimize waste, and reduce energy consumption through a series of environmental actions. While there are general strategies inherent in the compact, it is not tailored to the needs of the community. Energy Efficiency and Conservation Block Grant Program May 22, 2009 Page 3 potentially off-set any projected expenses for the current year, such as street light or vehicle replacements. Furthermore, it may help to fund any near future capital projects related to the program's purpose. CONCLUSION For these reasons noted above, Staff recommends the Board authorize Staff to apply for the Energy Efficiency and Conservation Block Grant (EECBG), as well as issue a RFP for consulting services to develop an Energy Efficiency and Conservation Strategy (EECS), assist the Village to implement any immediate plan initiatives, and develop mechanisms to report its progress back to the DOE ichael Dallas Administrative Analyst c: Dave Strahl, Assistant Village Manager