02/09/1981 Meeting (2) - Laserfiche WebLink

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ordinance went into effect; 2) removed the code from definitions of sub-standard buildings; and 3) removed the requirement of floor insulation, replacing it with a definition that it be cost-effective. Staff believed that the council review 4It in 1984 would achieve the same goals. Mr. Page invited Jean Reeder, Conservation Manager for EWEB, to present the financing programs that were on the drawing board and the outcome of discussions with the Bonneville Power Administration (BPA). e e Ms. Reeder advised that EWEB, in a formal opinion taken on February 2, 1981, unanimously supported the passage of the proposed weatherization standards for existing housing built prior to 1974, with an effective date of January 1, 1985, and a review of weatherization accomplished by 1984. The board commended the council for diligently pursuing a solution to a very difficult problem. The council and EWEB still have a challenge to develop the information and implemen- tation procedures to ensure the efficient use of energy and continued favorable low rates for all electricity users. EWEB is in the process of clarifying legal authority to lend credit for weatherization. The adopted RCS Plan proposes to offer low- and no-interest loans to all EWEB customers for cost-effective weatherization. All of the proposed standards presently being considered fall well within the cost-effective criteria developed by EWEB. Since the passage of the regional bill, the BPA has distributed eight proposed conservation programs for review and comment. As a result, EWEB may be in a position to offer a more attractive financing program and is presently working with other publicly owned utilities in the Northwest to negotiate with BPA to achieve the best cost advan- tage for customers over the next 20 years. The preliminary program proposed by BPA would include a reimbursement of 16.7 cents per kilowatt-hour of first-year savings for conservation achieved by each of the measures to be mandated by the ordinance. The method for determining the savings, the calculation for heat lost, the standards for implementation, the accounting procedures, conservation measures installed, and the changing level of cost-effectiveness, based on the changing cost of new resources, all have yet to be determined. If it can be assumed that the Federal DOE-approved RCS calculations are acceptable then, on a typical 1,100-square-foot home, the BPA reimbursement would pay outright almost every measure being considered. Based on first-year savings at 16.7 percent per kilowatt-hour, BPA would: 1) reimburse the total cost of contractor-installed R-38 in the ceiling when none existed prior to installation; 2) reimburse the total cost of R-19 floor insulation plus a vapor barrier where none existed prior to installation; 3) reimburse the total cost of duct insulation and caulk- ing (materials or contractor-installed cost); and 4) reimburse for the cost of materials for weatherstripping. It is anticipated that contract negotiations with BPA will take three to six months and would determine the level of reimurse- ment for conservation and the program necessary for EWEB to obtain funds. At the end of contract negotiations, EWEB should be able to determine the most favorable weatherization financing program to offer customers. Mr. Lindberg asked when negotiations would begin and was advised by Ms. Reeder that contract negotiations would begin on February 24th. Ms. Schue wanted to know if the BPA program applied to all EWEB customers. Ms. Reeder responded that the pro- posed 16.7 cents per kilowatt-hour would be for electric space heating only. MINUTES--Eugene City Council February 9, 1981 Page 3