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SARATOGA CITY COUNCIL
MEETING DATE: December 2, 2009 AGENDA ITEM:
DEPARTMENT: City Manager’s Office CITY MANAGER: Dave Anderson
PREPARED BY: Shawn Gardiner DIRECTOR: Barbara Powell
Parks Lead Worker Assistant City Manager
Crystal Morrow
Administrative Analyst II
SUBJECT: Resolution Authorizing Submittal of Energy Efficiency Conservation Block Grant
Application to the California Energy Commission
RECOMMENDED ACTION:
Accept report and approve attached resolution authorizing submittal of the City’s Energy
Efficiency Conservation Block Grant to the California Energy Commission.
BACKGROUND:
Energy Efficiency Block Grant (EECBG):
The EECBG program was established by the federal Energy Independence and Security Act of
2007 to reduce fossil fuel emissions in an environmentally sustainable manner, reduce energy
consumption, and improve energy efficiency in the building, transportation, and other appropriate
sectors. The program was funded for the first time when the American Recovery and
Reinvestment Act (ARRA) of 2009 was signed by President Obama.
The U.S. Department of Energy provided direct allocations of EECBG funds to large
municipalities, territories, Indian tribes, and states. The California Energy Commission received
just over $49 million in EECBG monies, 60% of which must be allocated to small cities and
counties that did not receive a direct EECBG allocation from the Department of Energy.
The California Energy Commission will be distributing this portion of the EECBG funds to small
cities and counties using a formula that is based on population and county unemployment rates.
The City of Saratoga is eligible to receive just over $169,000.
To receive EEBCG funds, small cities and counties must submit an application to the California
Energy Commission by January 12, 2009 by first approving the attached resolution that includes:
- Authorization of the grant application
- Acceptance of the grant money
- Determination of CEQA compliance
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To qualify for EECBG funds, applications must also meet cost effectiveness requirements
specified by State law. Small cities and counties must propose projects that save a minimum of 10
million source British Thermal Units per $1,000 of EECBG funds spent. This requirement rules
out more costly energy generation or efficiency improvements, such as solar. Furthermore, the
California Energy Commission is requiring a feasibility study to verify cost effectiveness
requirements of energy efficiency projects. EECBG guidelines are available online at
http://www.energy.ca.gov/recovery/blockgrant.html.
City of Saratoga EECBG Application:
Alternatively, the California Energy Commission has identified a number of direct equipment
purchase options that meet cost efficiency requirements and therefore do not require a feasibility
study. Light-emitting diode (LED) streetlights are among the direct equipment purchase options
listed by the California Energy Commission. Saratoga’s expected EECBG grant allocation would
cover the cost of replacing all of the High Pressure Sodium streetlights along Big Basin Way in
the Village with LED lights. The total cost to replace the existing Village streetlights with LED
fixtures is estimated at $169,000.
Requested Direction:
Staff is requesting that the City Council approve the attached resolution to allow the City to
submit an application to replace the existing street lights with LED fixtures. If the resolution is
approved, the City will prepare the application and select a LED streetlight manufacturer from
which to purchase the lights.
To ensure that the design of the light fixtures fits with the look and feel of the Village, staff is
proposing that the Council authorize the Village Ad Hoc Committee to work with staff to select a
light fixture that meets the Village Design Guidelines and is consistent with the character of the
Village.
FISCAL IMPACTS:
If the Council approves the attached resolution authorizing submittal of an application to the
California Energy Commission to replace the existing Village streetlights along Big Basin Way
with LEDs, the City’s EECBG allocation should cover the entire cost of purchasing and installing
the new LED streetlights.
By replacing the existing lights with LEDs, the City will use 50% less energy to power the
streetlights in the Village and will, therefore, be eligible to switch to a lower PG&E billing rate in
the downtown area. Furthermore, installing LED streetlights in the Village will reduce the City’s
maintenance expenses by $5,000 per year. The City may also be eligible to receive a small project
rebate from PG&E for upgrading the Village streetlights to LEDs.
CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS:
The City will be unable to submit an EECBG application to the California Energy Commission to
replace existing High Pressure Sodium streetlights on Big Basin Way in the Village with LED
fixtures.
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ALTERNATIVE ACTION(S):
The Council may direct staff to pursue other project(s) eligible for EECBG funding.
FOLLOW UP ACTION(S):
Implement Council direction.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
Nothing additional.
ATTACHMENTS:
Attachment A: Resolution