Number
100007
Version
Substitute 2
Reference
091061, 091147, 090376
Sponsor
ALD. HINES
Title
Substitute resolution authorizing the Department of Administration to enter into a cooperation agreement with the Wisconsin Energy Conservation Corporation to administer the Milwaukee Energy Efficiency program, and to accept a subgrant from the United States Department of Energy for the Energy Efficiency and Conservation Block Grant Retrofit Ramp-up program in the amount of $1,433,400.
Analysis
This resolution authorizes the Department of Administration to enter into a cooperation agreement with the Wisconsin Energy Conservation Corporation (WECC) to implement the Milwaukee Energy Efficiency (ME2) program. The purpose of this program is to stimulate a sustainable market for energy efficiency in Milwaukee’s residential commercial and industrial building stock. The ME2 program utilizes a grant from the U.S. Department of Energy to augment existing Focus on Energy programs with an innovative financing offer to address the high upfront costs of energy efficiency upgrades, a community workforce agreement and marketing to attract new customers to the program.
The ME2 program is funded as part of a $20 million U.S. Department of Energy Energy Efficiency and Conservation Block Grant (EECBG) Retrofit Ramp-up grant to WECC. The EECBG program grant funds are intended to leverage additional investment funds for financing at a lower cost of capital through the use of loan loss reserves and other credit enhancements, as well as to provide initial funds for program development, marketing, administration and implementation without cost to the City. ME2 activities will include a minimum funding of $12,051,372 for the City of Milwaukee. The objective will be to achieve at least 4,500 deep impact energy retrofits over the 3-year grant period. The program will be open to qualified properties throughout the city.
Body
Whereas, The Common Council, through adoption of Common Council Files 071136 and 080398, has expressed its commitment to promoting energy efficiency and renewable energy improvements in the City; and
Whereas, The Energy Efficiency and Conservation Block Grants (EECBG) Program, funded by the federal Recovery Act, represents a presidential priority to deploy the least expensive, cleanest, and most reliable energy technologies across the country; and
Whereas, The Vice-President’s Middle Class Task Force has identified the Recovery through Retrofit program as a key component to expand the home energy efficiency and retrofit market nationwide and to provide workers of all skill levels training and employment in this emerging market; and
Whereas, The City seeks to promote energy efficient retrofit projects using American Recovery and Reinvestment Act (ARRA) funding and other sources of capital to reduce energy costs for the owners of homes and businesses in the community, reduce air pollution and greenhouse gas emissions, improve the building stock and create jobs for local workers; and
Whereas, The Common Council, through Common Council File 091061, authorized the Department of Administration - Office of Environmental Sustainability to delegate the right to apply for the U.S. Department of Energy Retrofit Ramp-up grant to the Wisconsin Energy Conservation Corporation (WECC) on the behalf of the City; and
Whereas, WECC was selected as the administrator the ME2 Program based upon its years of experience utilizing the Focus on Energy Home Performance with Energy Star program, avoiding the need to spend program funds to recreate a delivery model and serving as a model for ME2 deployment; and
Whereas, WECC, on behalf of the Partner Cities of Milwaukee, Madison and Racine, Wisconsin, filed an application for and received a grant award from the U.S. Department of Energy (DOE) through the Energy Efficiency and Conservation Block Grant, Competitive Solicitation: Retrofit Ramp-up and General Innovation Fund Programs, in the amount of $20 million; and
Whereas, The Energy Efficiency and Conservation Block Grant will fund the ME2 program for activities carried out within the geographic limits of the city, with a minimum funding of $12,051,372 for the ME2 program, of which $1,433,400 is allocated to the City for its administrative and program services; and
Whereas, The City, through its participation in the ME2 Program, seeks to promote energy-efficient retrofit projects using American Recovery and Reinvestment Act (ARRA) funding and other sources of capital to reduce energy costs for the
owners of homes and businesses in Milwaukee, reduce air pollution and greenhouse gas emissions, improve the city’s building stock and create jobs for local workers; and
Whereas, While supporting the project’s overall objectives as outlined in the grant Statement of Project Objectives, the City reserves the right to revise the ME2 program strategies and tasks within DOE parameters, particularly as it relates to financing and workforce development; and
Whereas, This program will serve as an example of comprehensive community-scale energy-efficiency approaches that could be replicated in other communities across Wisconsin and the country and will establish the City of Milwaukee as a national leader in these efforts; and
Whereas, Project partners, including Wisconsin Energy Conservation Corporation, Focus on Energy, We Energies, the State Office of Energy Independence, organized labor and private lenders will provide incentives and in-kind services greater than 500% of the grant amount to help promote large-scale energy-efficiency activities in the city; and
Whereas, The Focus on Energy program and WECC recently completed a pilot neighborhood efficiency program, Together We Save, that successfully increased home owner participation in energy-efficiency work through the use of Energy Advocates and community-based marketing in two neighborhoods in the city; and
Whereas, The operation of this grant from July 27, 2010 to June 2, 2013 would apply a minimum of $12,051,372 to projects within the city, of which the entire amount would be provided by the grantor; and
Whereas, The ME2 program could be eligible for additional funds up to a total of $20 million if one or more of the partner cities does not participate in the WE2 project or terminates its participation prior to its budgeted project funds being committed or expended; and
Whereas, The local leverage needed for this grant does not require support from the City’s tax levy-supported budget; now, therefore
Resolved, By the Common Council of the City of Milwaukee, that the Department of Administration is authorized to enter into a cooperation agreement with WECC as set forth in the attached agreement, establishing the roles, responsibilities and allocation of resources between WECC and the City both as to general project oversight and the allocation and use of grant award funds for the ME2 program, consistent with the objectives, terms and conditions of the DOE grant award; and, be it
Further Resolved, That, consistent with guidance from the federal Office of Management and Budget, the Department of Administration is authorized to enter into a Community Workforce Agreement with WECC, ensuring compliance with equal opportunity laws and principles, promoting local hiring, providing practicable opportunities for small businesses and emerging business enterprises, encouraging sound labor practices, and engaging with community-based organizations; and, be it
Further Resolved, That the City Comptroller is authorized and directed to:
1. Commit funds within the Project/Grant Parent of the 2010 Special Revenue - Grant and Aid Projects fund, the following amount for the project titled Energy Efficiency Conservation Block Grant:
Project/Grant GR0001000000
Fund 0150
Org 9990
Program 0001
BY 0000
Subclass R999
Account 000600
Project Grantor Share
Amount $1,433,400
2. Create the necessary Grant and Aid Project/Grant and Project/Grant levels budget against these Project/Grant values the amount required under the grant agreement.
; and, be it
Further Resolved, That these funds are budgeted for the Department of Administration - Office of Environmental Sustainability, which is authorized to:
1. Expend from the amount budgeted for, sums for specified purposes as indicated in the grant budget and incur costs consistent with the award date.
2. Enter into subcontracts as detailed in the grant budget.
; and, be it
Further Resolved, That the Common Council directs that the 2010 Positions Ordinance Common Council File Number 090457, as amended, be amended as follows:
Under:
DEPARTMENT OF ADMINISTRATION
Office of the Director
Add:
Footnote designations (D) (X) (Y) to one position of Environmental Sustainability Program Manager.
Add Footnote (D) to read as follows:
(D) To expire 06/2/2013 unless the Energy Efficiency and Conservation Block Grant from the U.S. Department of Energy is renewed or new energy-related grants are awarded to fund the position.”
Requestor
Department of Administration
Drafter
LRB10206-4
RTW
07/26/10