Item B: Community Climate and Energy Action Plan Update

Home Browse Search

CE–ICAP* ITY OF UGENE NTERNAL LIMATE CTION LAN Action Cost and Funding Recommendations The majority of the actions identified in this plan are expected to return operational savings to the organization. At the time of this report, the only exceptions are some of those actions which depend on renewable energy. Of the broad range of actions put forward only the use of biodiesel and the purchase of Greenpower are not currently expected to provide savings. Additionally, the final step of purchasing offsets, to be considered at the end-term of this plan, would add operating cost. Other renewable energy actions, photovoltaic electrical generation in particular, are not currently cost-effective but were included in the end-term of the plan with the expectation that improved technology will soon reduce initial costs. Considered on a purely economic basis, these actions make sense and potentially for reasons beyond ongoing savings. While not yet quantifiable beyond the cost benefits of reducing energy use, the investment in GHG reduction may buffer the organization against financial risk. It appears likely that the regulatory environment could shift toward a concrete and down-trending cap on emissions. Those entities producing emissions beyond the cap could incur financial consequences. Conversely, emissions levels below a cap may allow trading and reinvestment in GHG reduction. City staff will need to track these developments on federal, regional and state levels to determine potential impacts on the organization. Several of the actions for the near-term (2012) of the plan are co-funded by EECBG, City Capital Improvement Projects(CIP) and utility incentives. It’s not known if the EECBG funding will continue; however, several actions are outlined and studies will soon begin on several others in order to prepare for potential future EECBG funding opportunities. In order to fund continuing progress toward GHG reduction and operational savings, it’s recommended that the organization consider financing for mid-term efforts (2016). Those measures that are not eligible for EECBG funding or are beyond the capacity of the CIP to undertake, may qualify for low- cost financing through the Oregon Dept of Energy’s SELP (Small-scale Energy Loan Program), CREBs (Clean Renewable Energy Bonds) or QECBs ( Qualified Energy Conservation Bonds). Performance contracting may offer another avenue to explore. An agreement is crafted which sets a repayment schedule based on guaranteed energy savings from a specified efficiency upgrade project. Public agencies in Oregon have begun to use this mechanism. The downside of financing initial investment is the impact of interest and the delay in realizing direct cost savings. However, if other options are not available to implement GHG reduction actions, financing allows immediate emissions reductions and eventual cost savings which may not have occurred at all. 24 *Plan adopted as a framework; subject to additional edits. Plan may be modified pending implementation.