AGENDA #12

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            Council Committee on Sustainability, Energy and Environment

                        Council Member Dorothy Verkerk, Chair

                        Council Member Bill Strom

                        Council Member Jim Ward

 

SUBJECT:       Draft Energy Bank Concept

 

DATE:             June 27, 2005

 

 

Attached is a draft “Energy Bank” concept developed by BVM Engineering of Atlanta with input from the Council Committee on Sustainability, Energy and Environment and Town staff.

 

The report outlines a potential process for establishing an Energy Bank, which would serve as a revolving fund to finance energy improvements at Town facilities. Brenda Morawa of BVM Engineering will review and report on the concept to the Council tonight.

 

BACKGROUND

 

In November 2003, voters approved $500,000 in Public Buildings bonds providing funding for energy efficiency improvements at Town facilities.

 

In February 2004, the State Department of Administration and the State Energy Office awarded the Town of Chapel Hill a $91,200 grant as part of the Sustainable Community Project grant program. The Town is in the process of completing the grant projects, which included the development of an “Energy Bank” concept and energy audits of Town facilities.

 

Beginning in the spring of 2004 the Council Committee on Sustainability, Energy and Environment discussed options for proceeding with development of the Energy Bank concept. In February 2005, the State Energy Office approved reallocation of the original grant budget to include more funds for the development of the Energy Bank.

                                        

In March 2005 the Town contracted with BVM Engineering of Atlanta to develop the energy bank concept. The scope of work also included energy audits of Fire Station Number 1 and Town Hall.

                                            

BVM Engineering subsequently met with Town staff and the Council Committee on Sustainability, Energy and Environment to discuss potential Energy Bank options.

DISCUSSION

 

An Energy Bank would function as a revolving fund that captures savings resulting from energy efficiency improvements at new and existing Town facilities. The 2003 Public Building Bonds are a potential source of funding for initial Energy Bank measures installed at existing buildings.

 

The options described in the attached report from BVM Engineering (please see Attachment 1) outlines an approach to identify potential energy conservation measures, calculate savings and “bank” the savings to be used for future energy improvements at Town buildings.

 

The concept requires further refinement before it can be presented to the Council for consideration as a policy. Issues to be resolved include:

 

• Responsibilities among Town Departments for administering an Energy Bank.
• Options for integrating an Energy Bank within the Town’s Budget and appropriations procedures.
• Procedures for identifying Energy Bank-eligible projects and energy savings resulting from improvements funded by the Energy Bank.
• Incentives to encourage Town departments to participate in the Energy Bank program.

 

NEXT STEPS

 

BVM Engineering will meet with Town staff on June 28, 2005 to review a potential software program designed to track the performance of energy conservation measures.

 

This summer Town staff will review the consultant’s report and develop a recommendation on a draft Energy Bank policy for the Council’s consideration in September or October 2005.

 

ATTACHMENT

                                             

1. Consultant’s Draft Energy Bank Concept (p. 3).