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Resolution 2019-30876RESOLUTION NO. 2019 -30876 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, URGING THE FLORIDA PUBLIC SERVICE COMMISSION (THE "PSC ") TO SET MEANINGFUL ENERGY EFFICIENCY GOALS IN THE 2019 FLORIDA ENERGY EFFICIENCY AND CONSERVATION ACT ( "FEECA ") PROCEEDINGS, INCLUDING A SPECIFIC PERCENTAGE GOAL; TO REPLACE THE RATEPAYER IMPACT MEASURE TEST WITH A CRITICAL COST - EFFECTIVENESS TEST FOR ELECTRIC EFFICIENCY PROGRAMS; TO ESTABLISH A STRONG ENERGY EFFICIENCY RESOURCES STANDARD FOR THE STATE OF FLORIDA AND ADOPT A STRONG DEMAND SIDE MANAGEMENT PROGRAM THAT INCLUDES UTILITY REBATES; TO REQUIRE FLORIDA ELECTRIC UTILITY COMPANIES TO SHARE WITH LOCAL GOVERNMENTS ANONYMIZED ENERGY CONSUMPTION DATA AT THE CENSUS BLOCK LEVEL TO ALLOW CITIES AND COUNTIES TO EFFECTIVELY DESIGN AND IMPLEMENT THEIR OWN ENERGY CONSERVATION PROGRAMS FOR RESIDENTS AND BUSINESSES; TO LEVERAGE FEDERAL WEATHERIZATION ASSISTANCE PROGRAM FUNDS TO PROVIDE GREATER ASSISTANCE TO LOW INCOME HOMEOWNERS TO REQUIRE THAT MOST, IF NOT ALL, OF THE NUMERIC ENERGY CONSERVATION GOALS BE MET THROUGH PROGRAMS TO ASSIST LOW - AND MODERATE - INCOME HOUSEHOLDS; AND TO ESTABLISH A RENEWABLE ENERGY GENERATION GOAL FOR UTILITIES; AND DIRECTING THE CITY CLERK TO TRANSMIT THIS RESOLUTION AND THE COMMENTS SET FORTH HEREIN TO THE PSC AND TO ALL FLORIDA MUNICIPALITIES. WHEREAS, Florida is considered one of the most vulnerable areas of the country to the consequences of global climate change, with southeast Florida being the most vulnerable to the impacts of a changing climate, especially sea level rise; and WHEREAS, in 1980, the Florida Legislature passed the Florida Energy Efficiency and Conservation Act ( "FEECA ") to reduce peak electricity demand and energy consumption; and WHEREAS, in 2008, the Florida Legislature amended FEECA to include an emphasis on cost - effective energy conservation measures; and WHEREAS, FEECA requires that the Florida Public Service Commission ( "PSC ") establish numeric energy conservation goals for Florida's largest utilities at least every five (5) years; and WHEREAS, the five Florida investor -owned utility companies currently subject to FEECA are Florida Power & Light ( "FPL "), Duke Energy Florida LLC, Tampa Electric 1 Company, Gulf Power Company, and the two Florida public utility companies currently subject to FEECA are Jacksonville Electric Authority ( "JEA ") and Orlando Utilities Commission; and WHEREAS, the upcoming 2019 FEECA hearings before the PSC, which will take place on August 12 -16, 2019, present an opportunity for substantial improvement to Florida's energy conservation goals; and WHEREAS, according to the American Council for an Energy- Efficient Economy ( "ACEEE ") report, Florida's largest utilities have the third worst performance in the southeastern United States in delivering energy conservation savings (measured as energy saved as a percentage of annual kilowatt sales to customers), with an energy conservation saving rate of 0.09 percent based on 2016 retail sales and 2017 net incremental savings; and WHEREAS, in 2017, ACEEE reported that the national energy conservation savings average was 0.66 percent, which is more than seven times higher than Florida, and that the energy conservation rates in California, Massachusetts, Rhode Island, and Vermont were 18 - 37 times higher than in Florida; and WHEREAS, Florida is one of the only states to still rely heavily on the ratepayer impact measure ( "RIM ") test as a cost- effectiveness test; and WHEREAS, the RIM test does not provide a balanced cost- effectiveness test for electric efficiency programs compared to other cost- effectiveness tests outlined in the California Standard Practice Manual, which is widely followed by the industry; and WHEREAS, the PSC should adopt a strong Demand Side Management Program that includes utility rebates for U.S. Environmental Protection Agency ( "EPA ") Energy Star appliances, high Seasonal Energy Efficiency Ratio ( "SEER ") rating air conditioners, installation of high efficiency windows and doors, and Cool Roof Rating Council low -heat absorbing roofing; and WHEREAS, in addition, as many low- and moderate - income households continue to struggle to afford electricity as temperatures increase and extreme heat waves become more common, the PSC should leverage Federal Weatherization Assistance Program funds to provide greater assistance to low- income homeowners throughout Florida; and WHEREAS, energy conservation and efficiency programs and policies that promote behavioral and operational changes by building owners and building occupants can not only significantly reduce energy demand from the build environment, reduce greenhouse gas emissions, and help building owners save money on bills, but also make the transition to renewable energy more feasible and renewable generation targets more attainable; and WHEREAS, currently, FPL's electricity generation and purchased power profile indicates that only about 1.5% of its fuel mix was from solar energy in 2018; and 2 WHEREAS, to ensure that Florida's utilities are moving to lower- emissions and no- emissions sources for electricity production, the PSC should establish a renewable energy generation goal for utilities; and WHEREAS, improved energy conservation goals will lead to more robust energy efficiency and conservation programs and options for residential and commercial customers, thereby providing economic, environmental, and public health benefits; and WHEREAS, in addition, municipalities could more effectively design and implement their own energy conservation programs for residents and businesses if Florida electric utility companies provided the local governments with anonymized energy consumption data at the census block level; and WHEREAS, the City of Miami Beach (the "City ") is committed to collaborating with its partners as it increases energy efficiency and expands consumption of electricity generated from renewable sources, in order to reduce its greenhouse gas ( "GHG ") emissions; and WHEREAS, the City is a party to the Global Covenant of Mayors for Climate & Energy, which is the world's largest cooperative effort among mayors and city leaders to reduce GHG emissions, track progress, and prepare for the impacts of climate change; and WHEREAS, the City has taken steps to aggressively address climate change and to reduce our community's carbon emissions, by completing annual greenhouse gas inventory and providing a Property Assessed Clean Energy ( "PACE ") program for residents and businesses; in addition, the City is in the process of developing a climate action plan and setting greenhouse gas emissions reduction targets; and WHEREAS, the City has also taken steps to reduce energy consumption, and promote energy efficiency and renewable energy, by adopting policies such the Green Building Ordinance and the Urban Heat Island Ordinance, which encourage sustainable construction and energy efficiency, and supporting the Sierra Club's Ready for 100 campaign which challenges cities to set a target of 100% clean, renewable energy; and WHEREAS, as such, the Mayor and City Commission hereby urge the PSC to set meaningful energy efficiency goals in the 2019 FEECA proceedings that will eventually meet the national average; and WHEREAS, the Mayor and City Commission further urge the PSC to establish a strong Energy Efficiency Resources Standard for the State of Florida and adopt a strong Demand Side Management Program that includes utility rebates; and WHEREAS, the Mayor and City Commission also urge the PSC to replace the ratepayer impact measure (RIM) test with an alternative, more widely accepted cost - 3 effectiveness test for electric efficiency programs; and WHEREAS, the Mayor and City Commission further urge the PSC to require Florida electric utility companies to share with local governments anonymized energy consumption data at the census block level to allow cities and counties to effectively design and implement their own energy conservation programs for residents and businesses; and WHEREAS, the Mayor and City Commission urge the PSC to leverage Federal Weatherization Assistance Program funds to provide greater assistance to low income homeowners and require that most, if not all, of the numeric energy conservation goals be met through programs to assist low- and moderate- income households; and WHEREAS, the Mayor and City Commission further urge the PSC to establish a renewable energy generation goal for utilities. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Commission hereby urge the Florida Public Service Commission (the "PSC ") to set meaningful energy efficiency goals in the 2019 Florida Energy Efficiency and Conservation Act ( "FEECA ") proceedings, including a specific percentage goal; to replace the ratepayer impact measure test with a critical cost - effectiveness test for electric efficiency programs; to establish a strong Energy Efficiency Resources Standard for the State of Florida and adopt a strong Demand Side Management Program that includes utility rebates; to require Florida electric utility companies to share with local governments anonymized energy consumption data at the census block level to allow cities and counties to effectively design and implement their own energy conservation programs for residents and businesses; to leverage Federal Weatherization Assistance Program funds to provide greater assistance to low income homeowners; to require that most, if not all, of the numeric energy conservation goals be met through programs to assist low- and moderate - income households; and to establish a renewable energy generation goal for utilities; and direct the City Clerk to transmit this Resolution and the comments set forth herein to the PSC and to all Florida municipalities. PASSED and ADOPTED this 17th day of July, 2019. ATTEST: ct 2c"cl Rafael Granado, City Clerk Dan Gelber, Mayor (Sponsored by Commissioner Mark Samuelia 4 PROVED AS TO RM & LANGUAGE FOR EXECUTION City Attorney 7 3 't Date MIAMI BEACH Resolutions - C7 E COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: July 17, 2019 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, URGING THE FLORIDA PUBLIC SERVICE COMMISSION (THE "PSC ") TO SET MEANINGFUL ENERGY EFFICIENCY GOALS IN THE 2019 FLORIDA ENERGY EFFICIENCY AND CONSERVATION ACT ( "FEECA ") PROCEEDINGS, INCLUDING A SPECIFIC PERCENTAGE GOAL; TO REPLACE THE RATEPAYER IMPACT MEASURE TEST WITH A CRITICAL COST - EFFECTIVENESS TEST FOR ELECTRIC EFFICIENCY PROGRAMS; TO ESTABLISH A STRONG ENERGY EFFICIENCY RESOURCES STANDARD FOR THE STATE OF FLORIDA AND ADOPT A STRONG DEMAND SIDE MANAGEMENT PROGRAM THAT INCLUDES UTILITY REBATES; TO REQUIRE FLORIDA ELECTRIC UTILITY COMPANIES TO SHARE WITH LOCAL GOVERNMENTS ANONYMIZED ENERGY CONSUMPTION DATA AT THE CENSUS BLOCK LEVEL TO ALLOW CITIES AND COUNTIES TO EFFECTIVELY DESIGN AND IMPLEMENT THEIR OWN ENERGY CONSERVATION PROGRAMS FOR RESIDENTS AND BUSINESSES; TO LEVERAGE FEDERAL WEATHERIZATION ASSISTANCE PROGRAM FUNDS TO PROVIDE GREATER ASSISTANCE TO LOW INCOME HOMEOWNERS TO REQUIRE THAT MOST, IF NOT ALL, OF THE NUMERIC ENERGY CONSERVATION GOALS BE MET THROUGH PROGRAMS TO ASSIST LOW -AND MODERATE - INCOME HOUSEHOLDS; AND TO ESTABLISH A RENEWABLE ENERGY GENERATION GOAL FOR UTILITIES; AND DIRECTING THE CITY CLERK TO TRANSMIT THIS RESOLUTION AND THE COMMENTS SET FORTH HEREIN TO THE PSC AND TO ALL FLORIDA MUNICIPALITIES. RECOMMENDATION Adopt the resolution ANALYSIS In 1980, the Florida Legislature passed the Florida Energy Efficiency and Conservation Act (FEECA) to reduce peak electricity demand and energy consumption. Sections 366.82(2) and 366.82(6), Florida Statutes, require the Florida Public Service Commission (PSC) to establish goals for the FEECA utilities and review the goals at least every five years. Page 274 of 1502 The five Florida investor -owned utilities currently subject to FEECA are: Florida Power & Light (FPL), Duke Energy Florida LLC, Tampa Electric Company, Gulf Power Company, and Florida Public Utilities Company. The two municipal utilities currently subject to FEECA are: JEA (formerly Jacksonville Electric Authority) and Orlando Utilities Commission. Historically, Florida utilities' energy efficiency spending falls well below both national and southeastern states' averages. According to the American Council on an Energy- Efficient Economy (ACEEE), in 2017, Florida's largest utilities had an average energy conservation saving rate of 0.09 percent. In the same year, the national energy conservation savings average was 0.66 percent; more than seven times higher than Florida. Most states use some combination of the cost- effectiveness tests outlined in the California Standard Practice Manual but Florida is one of the only states to still rely heavily on the ratepayer impact measure (RIM) test as a cost - effectiveness test. The RIM test does not provide a balanced cost - effectiveness test for electric efficiency programs compared to other tests in the California Standard Practice Manual. Using other cost - effectivenss tests and weighing them more evenly would provide a more transparent representation of energy efficiency programs' costs and benefits. Energy conservation and efficiency programs and policies that promote behavioral and operational changes by building owners and building occupants can not only significantly reduce energy demand from the build environment, reduce greenhouse gas emissions and help building owners save money on bills, but also make the transition to renewable energy more feasible. To ensure that Florida's utilities are moving to lower- emissions and no- emissions sources for electricity production, the PSC could establish a renewable energy generation goal for utilities. FPL's electricity generation and purchased power profile indicates that only about 1.5% of its fuel mix was from solar in 2018. According to FPL's 2019 Ten Year Plant Site Plan, FPL projects that approximately 15% of the total energy they deliver in 2028 will be from solar energy. Moreover, FPL recently announced its '30- by -30' plan; a plan to install more than 30 million solar panels by 2030. The PSC establishing a renewable energy generation goal for utilities would reinforce the current goals that many Florida utilities, including FPL, have already set and provide a foundation for communities that also want to set up renewable goals. This statewide goal would facilitate the collaboration between communities and utilities to reach their renewable energy goals. The City is committed to the adaptation and mitigation of climate change and has taken steps to reduce our community's carbon emissions by completing annual greenhouse gas inventories, providing a Property Assessed Clean Energy (PACE) program for residents and businesses, commencing the development of a climate action plan and greenhouse gas emissions reduction targets, and adopting policies such the Green Building Ordinance and the Urban Heat Island Ordinance which encourage sustainable construction and energy efficiency. In addition, the City supports the Sierra Club's Ready for 100 campaign which challenges cities to set a target of 100% clean, renewable energy. The City is also a party to the Global Covenant of Mayors for Climate & Energy, which is the world's largest cooperative effort among mayors and city leaders to reduce greenhouse gas emissions, track progress, and prepare for the impacts of climate change. Page 275 of 1502 The City continues to adapt to the effects of climate change and implement programs and policies that aim to mitigate climate change. Through a collaborative effort with local and regional stakeholders, these efforts will yield a greater impact. Our utility is critical in the success of the goals and targets we set regarding climate action and we hope that our utility's future plans, and Florida utilities' future plans as a whole, support our municipality's low- emission ambitions and the goals of other regional partners and cities and counties across Florida. CONCLUSION The Administration recommends the Mayor and City Commission to approve the Resolution. Legislative Tracking Environment and Sustainability Sponsor Commissioner Mark Samuelian ATTACHMENTS: Description D Resolution PSC FEECA Page 276 of 1502