LTC 021-2008 Federal Funding Opportunities for Green Initiatives
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CITY CL~~~i"S G~ F{C{.
OFFICE OF THE CITY MANAGER
NO. LTC # 021-2008
LETTER TO COMMISSION
TO: Mayor Matti H. Bower and Members of the City Commission
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FROM: Jorge M. Gonzalez, City Manager \,
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DATE: January 22, 2008
SUBJECT: FEDERAL FUNDING OPPORTUNITIES FOR GREEN INITIATIVES
The purpose of this LTC is to provide the Mayor and City Commission with the attached
correspondence from the City's federal lobbyists. During meetings with the City's federal
lobbyists on January 18, 2008, several Commissioners requested information on `green'
initiatives and the new Energy Efficiency and Conservation Block Grant Program.
In addition to the summary memorandum, information from the U.S. Conference of Mayors is
also attached. This program is still in the early stage of development and implementation;
however, if you have any questions or comments please do not hesitate to contact me.
JMG/HF/kc
Attachment
F:\ECON\$ALL\KEVIN\Correspondence\LTCs\eebg.doc
Jan 21 2008 16:48 HP LRSERJET FRX 410 626 1657 p.2
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MONDAY, JANUARY 21, 2008
MEMORANDUM
T0: CITY OF MIAMI BEACH
Office of the City Manager
Commissioners and Crreen Committee
FROM; Marilyn Berry Thompson
F. Marion Turner
SUBJECT: FEDERAL FUNDING OPPORTUNITIES DEVELOPING
FOR "GREEN" INITIATIVES -- a Preliminary Report
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This brief outline should be considered only our f rst, and still very preliminary report on
recent developments and federal funding options for "Green Initiatives, Buildings;
Projects". The most definitive, visible development is the new Energy Efficiency and
Conservation Block Grant for State and Local Governments. The bulk of this report is,
therefore, focused on this new funding option. However, we have also conducted a very
preliminary review of other legislative accounts and agency options that may warrant your
review and attention.
(1) New Energy Efficiency and Conservation Block Grant Program
Background: This is a $10 billion block grant program ($2 billion per year over five fiscal
years) that is to be allocated, on a formula basis to support "bottom-up" community-based,
USDOE-approved strategies:
-- 68% or $1.36 billion to counties (2p0,000 or above) and cities (over 35,000};
-- and 38% or $560 million to states (;for abalance-of--state program to pass-through
(60°!0, in any case) to local govermnents not receiving a direct allocation);
-- 4% for USDOE national allocations and tribal programs (2% each).
It is important to note that while this program has been signed into law, as part of the Energy
Independence and Security Act (PL 110-140, Title V, Sections 541-548}, it is NOT yet funded.
Securing the actual implementing appropriations will be-atop priority of the U.S. Conference of
Mayoxs and local governments nationally this yeas. They will be exploring all options to do this
-- i..e., FY2008 supplemental appropriations bills and regular FY2009 bills. VVe will keep you
posted so that the City can, if it deems it appropriate, weigh in and actively participate in this
campaign.
JORDBN BURS' LLP
xrrn:llwww.Joxnatvreanr.coer
Jan 21 2008 16:48 HP LRSERJET FAX 410 626 1657 p.3
The USCM takes credit for initiating this idea and shepherding it through Congress this year
(and that would be fair). The Mayor of Miami is part of the top leadership of the USCM (and
moving up) and hence, his recent pronouncement of this as an accomplishment with which he is
closely aligned.
In any case, the USCM has produced some excellent materials fully explaining how the program
is supposed to work, once funded. Those materials are attached_ Following are some additional
highlights of note:
o Note: USDOE must approve the city and county strategies eligible for funding. There are
three main goals:
(1) Reduce fossil fuel emissions;
(2) Reduce overall total energy use;
(3) Improve energy efficiency in the transportation, building, other appropriate sectors.
o Eligible Activities:
(1} Develop/Implement an energy efficiency and conservation strategy.
(2) Retaixung consultant services to assist on such.
(3) Conducting residential and commercial building energy audits.
(4) Establish financial incentive funds far energy/efficiency improvements (e.g., loans,
rebates, waivers of certain fees, permits).
(5) Grants to nonprofits to perform energy retrofits.
(6) Programs to consezve energy used in transportation (flex time, satellite work stations,
zoning requirements that promotes energy efficient transportation/use like bike lanes,
pedestrian walkways, traffic signal synchronization}_
{?} Developmentlimplementation of new building codes, inspection practices/services
to promote building energy efficiency.
(8) Implementing energy distribution technologies.
{9) Developing public education programs to promote recycling participationlefficiency.
{1Q)Purchasing/Implementing technologies to reduce and capture methane, other
greenhouse gases generated by landfills, other sources.
(l 1}Installing light emitting diodes {LEDS).
(12)Developing, implementing, installing on any or in any government building
onsite renewable energy and technology that generates electricity from renweable
resources {biomass, wind energy; fuel cells, solar).
(13)Any other activity identified by the Secretary of Energy, following consultation
with the Secretaries of HUD, Transportation, EPA.
Please also see attached documents; and we will need to further review the authorization
language for further guidance as to priority goals, objectives, approvable/eligible uses.
o No matching funds are required.
o A local government will be expected to develop An Energy Efficiency and Conservation
Strategy pursuant to the requirements of tie statute, and submit it within 12 months of
receiving your first allocation. In effect, the Strategy is intended to be a five-year strategy
Jan 21 2008 16:48 HP LRSERJET FRX 410 626 1657 p.4
with subsequent funding in years 2, 3, 4, 5 utilized to implement that approved strategy.
However, it is not yet clear what process exists/could be used to amend any
submitted/approved strategy, especially should key factors, developments, technology etc.
recommend major adjustments. This level of detail still needs to be worked out.
o Limitations and Requirements -Highlights:
Note:
--The Strategic Plan SubmissionlApproval Process.
As noted, a strategic plan will be required to be submitted within 12 months of the first
allocation. such plan shall include goals and details regarding implementation plan.
The Secretary of Energy must approve/disapprove within 120 days of receipt, or return
the plan for revision.
-- Administrative/Staffing Expenses; 10% limitation or $75,000, whichever is greater.
-- Revolving Loan Fund Establishmlent: 20%, or $250,000, whichever is greater.
-- Sub-granting to non-governmental organizations (non-profits, consultants):
20% or $250,000, whichever is greater.
o The Secretary is also required by law to publish allocation plans and plan submission guidance
within 90 days of an actual appropriation.
o The funds set aside for USDOE to administer nationally (2% of the total appropriated, or $40
million if the full $2 billion annual appropriation is approved) is intended for a national
competitive program. That competition is supposed to draw out especially innovative
programs that have a broader reach, national demonstration/replication value, etc., i.e.,
projects that will contribute "significantly" to energy efficiency improvements or reductions
in fossil fuel use. However, the Secretary is also required to give priority to applications from
less populated states (2 million or less).
o States receiving their "Balance of State" Allocations (3$% of total) must also, within 120 days
of enactment of the law, submit a series ofplans and certifications:
(1) A modified conservation strategy, demonstrating that they have modified any existing
energy conservation plan to reflect additional goals for increased energy efficiency
and conservation.
(2) States must also submit a plan as to how they will manage sub-state allocations,
(3) and, will have to retain responsibility for reporting on the status of implementation
of the State's plan, the status of sub-state plan, and goals achieved.
o Cities will also be required to submit annual reports -- the first of which will not be due,
however, until two years after receipt of the initial allocation, and then annually thereafter.
the report shall include specifics as to the implementation plan, status, progress, energy
efficiency gains.
o Certain of the goals would seem to recommend some collaborative initiatives, with the
State, County, other local governments -~ especially non-direct eligibles. There is not yet
guidance as to the mechanisms that could be used to faster such collaborations.
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Projected Allocations to Florida, City of Miami Beach, City of Miami, Dade County:
Note: Allocations are supposed to be calculated on a population basis.
City of Miami Beach:
(using popnIatioa number of 87,933)
City of Miami:
{using population of 362,70)
Miami-Dade County:
Florida: Overview
$525,380.33 Annually;
Five-Year Total Estimate: $2,626,901.63
$2,165,678.50 Annually;
Five-Year Total Estimate: $10,828,392.48
Data forthcoming.
-- 69 city government recipients
-- 23 counties
-- Balance of State Allocation: Do not yet have confirmed amount.
-- Total to Florida: Being calculated.
(2) Congressional Targeted Funding for Site-Specific "Green Projects"
Over the past four federal fiscal years, Congress has been providing "targeted" funding to
specific "green building" or green technology projects. Since our meetings on Thursday and
Friday, we have attempted to review and sumimarize this trend.
o First, the projects have been "listed' under three different accaunts:
-- Fossil Fuel Energy
-- Renewable Energy Initiatives
-- Energy Efficiency.
o The vast majority of these projects, to date, have been allocated to:
-- university-related initiatives, connected to their Centers for....xyz, to support
the exploration and application of new technologies consistent with these accounts;
-- specific utility initiatives
-- hospital projects.
However, there have been a select number awarded to individual local governments.
Again, these have also been projects focusing on specific plants, utilities, facilities.
It remains to be seen whether this practice will continue, especially with the new
black grant. Nevertheless, if a project develops that has merit and promise, it should be
brought forward; and certainly, if thee is a collaboration with a university that
might be appropriate, that could also be a productive route.
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(3) Solar Cities
The U.S. Department of Energy has also announced a competition for the designation as one of
"America's Solar Cities". With the designation comes some funding to further advance your
solar plan, but the real benefit is felt to be, nod the funding level, but the designation.
Other Notes: Other Steps
o The U.S. Conference of Mayors has announced that its Green Jobs Agenda and the
Implementation of this new Energy Efficiency Block Grant are two of its very, very top
agenda items for the year. In addition to tracking the new block grant, we will be working with
them to continue to unearth and identify other developments/opportunities in this arena. We
rr~eet every single week at the USCM on Monday mornings to coordinate strategies, share
intelligence, etc.
We will stay close to all of this, and share all information, developments with the commission
and Committee.
o The newly signed Energy Independence and Security Act of 200? (PL 110-1.40) is a
massive piece of legislation that, yes, includes this new block grant, but also supports a wide
range of clean energy/energy efficiency/climate control initiatives. A number of these provisions
will be R&Dltechnology development initiatives that will involve the university community,
again. But, we will undertake a hard review of the Act's provisions and identify other key
provisions and initiatives in which the City may have an interest.
University Collaborations
I would note that FIU has a major contract ~vith the Department of Energy and may be a solid
partner here. Also, of course, the University of Miami has had a hydrogen project, a electron
beam initiative to treat waste, arrxong others. so, both far the purposes of targeted appropriations
for the future and to advance collaborative pursuit of federal grants, you may also wish to have
some exploratory conversations with one or both.
o New FY2009 Federal Budget
On February 4th the new federal budget will be released. We will be doing a targeted report for
you as to any "Green-related" initiatives, program budgets, et.al. that are included therein.
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Energy and Environmental Block Grant (EEBG) Program
Background
The United States, to remain competitive and economically viable, needs a comprehensive energy
strategy that incorporates energy efficiency and alternative energy sources. In addition, the United
States, while representing less than 5 percent of the world's population, releases a projected 25
percent of al! greenhouse gases emitted worldwide, the major contributor of global warming, Local
governments are par6cularlywall-positioned to iievebp, implement and promote an energy efficiency
and greenhouse gas reduction strategy at the community level.
The Energy and Environmental Blvck Grant program assists local and state governments to develop
and implement a comprehensive energy efficiency strategy which emphasizes abottom-up,
communi#y-based approach in helping the nation meet its energy and climate protection goals.
Program Elements of the EEBG Proposa~l-
• Eligible Communities - 70 percent of all funds would be directed to cities with populations of
50,000 or more and Counties of 200,000 or more based on a formula, set by the Secretary of
Energy considering residential and daytime population. States would receive the remaining 30
percent of the funds and would be required to pass through at least 70 percent to provide
subgrants to units of local govemments that are not eligible under the population formula.
Planning Grants -The DOE Secretary can disburse $200,000 or 20 percent of the grant
(whichever is greater) to the local and state government to assist with the development of an
Energy Efficiency and Climate Protection Strategy. The local and state government must
submit and receive approval by the Secretary of Energy of this s#rategy which establishes
goals for increased energy efficiency and reduction of greenhouse gas emissions in that
jurisdiction.
• Eligible Activities of the Energy EfFciency and Climate Protection Strategy -
o Determination of 1990 and present levels of greenhouse gas emissions;
o Conducting energy audits and weatherization programs;
o Creation of financial incentive programs for energy efficiency retrofits;
o Development and implementation of building and home energy conservation programs;
o Development and implementation of transportation fuel conservation programs;
o Development and implementation of alternative fuel technologies and infrastructure
that result insignificant greenhouse gas emission reductions; and
o Development and implementation of building codes and inspection services far public,
commercial, industrial, and residential buildings to promote energy efficiency;
o Development and promotion of land use guidelines that result in energy efficiency and
greenhouse gas emission reductions.
• Annual Reporting Requirements -The local and state government will submit annual reports
to the DOE Secretary regarding the statics of the Strategy's development, implementation, and
if possible, a best available assessment of the energy efficiency gains and greenhouse gas
reductions realized.
• Appropriation Levels - $4 billion in FY 2008 - 2009; $5 billion in FY 2010 - 2011; and $6 billion
in FY 2012.
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Benefits of EEBG -
S,i~ifica t Enerav Savlnry~ %^ she 1Vew Building Sector. The updating and revision of
building codes within cities and counties wdl result m significant increases in energy efficiency.
For example, buildings and their construction account for nearly half of alt the greenhouse gas
emissions and energy consumed in this country each year, according to the American Institute
of Architects. By 2031, according to a Global Insight, Inc. 25-year forecast, the nation will build
39.3 million new homes and 20 billion sq. ft. of commercial space that will consume, at current
rates, an additional four quadrillion BTUs annually, It is estimated that t30-85% of all buildings
will be newly constructed or rehabbedlrenovated by the year 2035. Updating local codes to
achieve carbon neutral 2030 goals will result in substantial energy reductions.
EnerayAudits and Retrofits for xlstina Buifdlnas: The existing building stock utilizes
significantly less-efficient energy technology and therefore accounts for the majority of energy
consumed by building sectors. Local programs that perform energy audits to identify cost
effective retrofits in the public, non-profit; residential and business sectors would yield
significant increases in energy efficiency through the removal of outdated and inefficient
technology. The EEBG would expand building energy retrofit programs in communities,
resulting in significant savings.
Gommunity-based E~ raryConservatlon Pros~rams: The most cost-effective and
immediate way to increase energy efficiency and reduce GHG emissions is through personal,
behavieral change and participation in energy conservation programs. Local governments can
organize these voluntary programs to reduce energy consumption by "turning the lights out";
"turning down thermostats"; conversion to compact fluorescent lighting; performance of home
energy audits; etc. Local governments launched over 5,000 community recyc!'sng programs in
the early 1990s because the populace was energized to participate in such programs to
achieve a common public goal. Similar participatory results can be achieved for energy
efficiency initiatives that will result in significant energy savings.
Community--based Transaortatlon Programs: President Bush has asked the public to
reduce gasoline consumption by 10 perbent. In order to meet these goals, a mix of
conservation and alternative technologies will be required. Cities and counties are well-
positioned to launch programs that encourage such activities as car pooling, increased transit
ridership, flex-time by employers, and other initiatives to reduce vehicle miles traveled. These
programs can also address alternative fuel distribution systems at the local level that will
encourage fossil fuel alternatives.
Promotion of Alternative Energy Technologies: Cities and communities are often the
laboratories for the application of new energy technologies that require demonstration before
they are fu11y accepted by the broader public. By establishing and fostering such
demonstration programs, cities can expedite the acceptance of new and innovative
technologies at the community and business level, resulting in significant energy savings.
Through development of local programs that promote alternative energy technology, cities and
counties will significantly increase the rate of adoption of these technologies by businesses,
commercial buildings, and homes.
• Design for Enemy Efficient Communlf/es: Cities can design for more energy efficiency
through promotion of transit-oriented development; mixed-use development; alternative
transportation use; pedestrian~riented communities; and other design approaches that
encourage fewer vehicle miles traveled:
• Enaaaement of Citizens and ICey Sectors Full-scale city and county energy initiatives will
yield high rates of citizen participation and serve as catalysts for action among the business,
non-profit, educational and general public sectors to carry out a variety of energy reduction
and climate protection activities that benefit the entire community.