Number
111490
Version
Substitute 1
Reference
100007, 100770, 110140
Sponsor
THE CHAIR
Title
Substitute resolution amending agreements with the Wisconsin Energy Conservation Corporation relating to energy efficiency grants.
Analysis
This resolution authorizes the Department of Administration - Office of Environmental Sustainability to amend its agreement with Wisconsin Energy Conservation Corporation authorized by Common Council File Number 100770, adopted on November 23, 2010. Agreements will be amended to designate certain Me2 program funds as “committed” in compliance with the U.S. Department of Energy grant requirements set forth in DOE EECBG Program Notice 11-003, effective November 1, 2011.
While overall Me2 program grant funding will be unchanged, these amendments will set aside an additional $1,991,300 to fund direct incentives for eligible Me2 participants. These funds were originally allocated for various administrative costs.
In addition, this resolution authorizes the Department of Administration - Office of Environmental Sustainability to initiate and approve an agreement obligating Wisconsin Energy Conservation Corporation to transfer $3,350,000 to the Milwaukee Economic Development Corporation. The agreement will obligate Milwaukee Economic Development Corporation to act as the fiscal agent for these funds, spending $2,850,000 to fund Cash Collateral Reserve Accounts for the Me2 financing programs, and $500,000 for Interest Rate Buy-downs on non-residential financing agreements as described in Common Council File Number 110140, or for other financing programs consistent with Me2 grant goals approved by Department of Administration - Office of Environmental Sustainability.
Body
Whereas, Common Council Resolution File Number 100007, adopted on July 27, 2010, authorized a Cooperation Agreement Between the Wisconsin Energy Conservation Corporation and the City of Milwaukee regarding and the Milwaukee Energy Efficiency Project, Me2 program, and Common Council Resolution File Numbers 100770, 110140 and 110368 adopted November 23, 2010, July 6, 2011, and July 26, 2011, respectively, authorized amendments of this agreement; and
Whereas, The Department of Administration - Office of Environmental Sustainability wishes to reallocate Me2 grant funds whenever possible to increase funds available to directly pay rebates and incentives to eligible program participants who make environmentally sustainable property upgrades and create jobs; and
Whereas, The Wisconsin Energy Conservation Corporation has a capable fulfillment department and has considerable experience processing and paying rebates and incentives directly to property owners; and
Whereas, The Department of Administration - Office of Environmental Sustainability wishes to be aggressive with Me2 grant reallocations in the future and seeks authority to make such reallocations without Common Council oversight provided the reallocation:
1. Does not result in a reduction of total grant dollars committed to the Me2 program.
2. Increases direct rebates or incentives paid to eligible Me2 program participants, and does not increase allocations for administrative, overhead or similar grant expenditures.
Whereas, The City and Wisconsin Energy Conservation Corporation wish to amend their agreement to comply with the U.S. Department of Energy grant requirements set forth in DOE EECBG Program Notice 11-003, effective November 1, 2011, by:
1. Reallocating $1,991,300 to fund direct incentives for eligible Me2 participants which was originally allocated for various administrative costs.
2. Committing $2,850,000 to fund Cash Collateral Reserve Accounts for the Me2 financing programs, and $500,000 for Interest Rate Buy-downs on non-residential financing agreements.
Whereas, The Department of Administration - Office of Environmental Sustainability wishes to initiate and approve an agreement obligating Wisconsin Energy Conservation Corporation to transfer $3,350,000 to the Milwaukee Economic Development Corporation to further comply with the U.S. Department of Energy grant requirements set forth in DOE EECBG Program Notice 11-003, effective November 1, 2011, by obligating the Milwaukee Economic Development Corporation to act as the fiscal agent for these funds, spending $2,850,000 to fund Cash Collateral Reserve Accounts for the Me2 financing programs, and $500,000 for Interest Rate Buy-downs on non-residential financing agreements as described in Common Council File Number 110140, or for other financing programs consistent with Me2 grant goals approved by Department of Administration - Office of Environmental Sustainability; therefore, now, be it
Resolved. By the Common Council of the City of Milwaukee, that the Common Council authorizes the Department of Administration - Office of Environmental Sustainability to amend its agreement with Wisconsin Energy Conservation Corporation authorized by the Common Council File Number 100770, adopted on November 23, 2010, to designate certain Me2 program funds as “committed” in compliance with the U.S. Department of Energy grant requirements set forth in DOE EECBG Program Notice 11-003, effective November 1, 2011; and, be it
Further Resolved, These amendments will allocate an additional $1,991,300 to fund direct incentives for eligible Me2 program participants which was originally allocated for various administrative, legal and financing costs leaving overall, total Me2 program grant funding unchanged; and, be it
Further Resolved, These amendments will formally commit $2,850,000 to fund Cash Collateral Reserve Accounts for the Me2 financing programs, and $500,000 for Interest Rate Buy-downs on non-residential financing agreements; and, be it
Further Resolved, The Department of Administration - Office of Environmental Sustainability is authorized to initiate and approve an agreement obligating Wisconsin Energy Conservation Corporation to transfer $3,350,000 to the Milwaukee Economic Development Corporation to comply with the U.S. Department of Energy grant requirements set forth in DOE EECBG Program Notice 11-003, effective November 1, 2011, that will obligate the Milwaukee Economic Development Corporation to act as the fiscal agent for these funds, and to spend $2,850,000 to fund Cash Collateral Reserve Accounts for the Me2 financing programs, and $500,000 for Interest Rate Buy-downs on non-residential financing agreements as described in Common Council File Number 110140, or for other financing programs consistent with Me2 grant goals approved by Department of Administration - Office of Environmental Sustainability.
Requestor
Department of Administration - Office of Environmental Sustainability
Drafter
Erick Shambarger
2/23/12
LRB #137557 - 2
Aaron Cadle
March 7, 2012