AGENDA #5a

 

MEMORANDUM

 

TO:

Mayor and Town Council

FROM:

Sustainability, Energy and Environment (SEE) Committee

(Council Member Jim Ward (Chair), Mayor pro-tem Bill Strom and Council Member Laurin Easthom)

SUBJECT:

Potential Funding from Utility Providers for Carbon Reduction (Cred) Efforts

DATE:

March 19, 2007

 

INTRODUCTION

 

This memorandum provides information on a potential collaboration between utility providers in the State of North Carolina and the University of North Carolina Institute for the Environment, with potential funding from the utility providers for communities in North Carolina that have established energy efficiency and carbon reduction goals.

 

BACKGROUND

 

On January 10, 2005, the Council referred to the Council Committee on Sustainability, Energy and Environment a proposal from the Carolina Environmental Program (CEP) at UNC seeking a commitment from the Town to become a Carbon Reduction Project Demonstration Site.

 

On September 27, 2006, the Town adopted a resolution (2006-09-27/R-8) to reduce carbon emissions generated in Chapel Hill in 2005 by 60 percent by 2050 as part of their participation in the CRed Program. The resolution also adopted intermediate goals for reducing carbon emissions attributed to Town municipal operations, beginning with an initial goal of five percent reduction by 2010 (Attachment 1). 

 

Following the adoption of the September 27, 2006 CRed goals, staff began working with the SEE Committee to identify measures that would reduce carbon emissions in the Town.

 

DISCUSSION

 

During Professor Crawford-Brown’s March 5, 2007 meeting with the SEE Committee, he announced that the CEP would be renamed the “University of North Carolina (UNC) Institute for the Environment”.  Some of the activities within the Institute will be sponsored in part by companies that provide utilities in the State of North Carolina.  Representatives of utility providers will be present at the event to be held in mid-April at the Carolina Inn to announce their partnership with the UNC Institute for the Environment.

 

Professor Crawford-Brown also explained that the State of North Carolina is developing plans to mandate that utility providers spend a certain percentage of their profits to generate energy by utilizing “renewable” energy sources, which can include biomass, hydroelectric, solar, and wind power.

 

The renewable energy sector of a utility company’s energy generation is referred to as a Renewable Portfolio Standard, or RPS. The State will be permitting the utility providers to accomplish 25 percent of its RPS by through an increase in energy efficiency, accomplished by promoting energy efficiency in their North Carolina service areas.

 

Staff has continued to work with students in the CEP to investigate potential strategies that will aid the Town in meeting its CRed goals. 

 

NEXT STEPS

 

Staff will continue to work with the SEE Committee to assess the potential of various CRed strategies for Town municipal operations and the Chapel Hill community.

 

We will also work with students in the UNC Institute for the Environment as they continue to explore options to reduce carbon emissions in Chapel Hill.

 

We will work with Professor Crawford-Brown to assess the potential interest by utility providers in creating “model communities”, intended to be the first communities in North Carolina to engage in their energy efficiency programs.

 

ATTACHMENTS

  1. September 27, 2006 resolution (p. 3).