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Work Session <br />February 16, 2010 <br />Page 3 <br /> <br /> <br />first three loans were for high efficiency heat pumps. He noted that the Hult Center had formerly run with a <br />system that had a 67 percent efficiency rate and now was running with a system that had more than a 90 percent <br />efficiency rate. <br /> <br /> Mr. G. Brown asked how the steam was being produced at present. Mr. Logan replied that the fuel used <br />was natural gas. In response to a follow-up question, Mr. Logan affirmed that at one time the steam plant had <br />used biomass fuel called hog fuel. <br /> <br /> In response to a question from Eugene City Manager Jon Ruiz, Mr. Nelson stated that the Federal DOE <br />would make an announcement on March 15 regarding the grant awards. He explained that part of the negotiation <br />with Portland was to be a sub-applicant because it was felt that it would be more beneficial to do so. He said the <br />sub-applicant status meant that if Portland received $75 million, Eugene would receive $6 million, and if Portland <br />received less, Eugene would receive proportionately less. <br /> <br /> Ms. Ortiz thanked staff for the presentation. She confirmed that the intention was to keep the steam <br />utility in operation at least until the contract with PeaceHealth ended, in 2011. She asked what kinds of programs <br />there would be for those that could not afford to convert. Mr. Logan replied that the steam utility had two <br />boilers. He said he had not calculated what it would cost if they had to reduce the output to one boiler because it <br />was dependent on where an entity that was not off the system was located on the line and how much steam was <br />needed. He stated that they planned to decommission portions of the system, starting at the perimeter and <br />working toward the core. He underscored that they were still moving toward the goal of having the steam utility <br />completely shut down by 2012. While he was not certain of the cost of running only one boiler, he knew it would <br />cost more to continue on that basis. <br /> <br /> EWEB General Manager Randy Berggren said staff had discussed this and understood that it would not <br />be a wise investment to do so. He thought EWEB would be open to figure out a creative way to avoid this kind of <br />waste. He considered this possibility to be another complexity in a project that was already complex. <br /> <br /> Ms. Ortiz asked if PeaceHealth was part of the scoping for the conversion plan. Mr. Logan responded <br />that PeaceHealth had not been included in the original scope of work. He said PeaceHealth was interested in <br />having a site assessment completed by the end of the year. <br /> <br /> President Brown asked if the funds would be allowed to be used to help with asbestos abatement. Mr. <br />Logan replied that the first ODOE loan included a significant portion for asbestos abatement. <br /> <br /> Mr. Nelson stated that one component of the grant program was to bring municipalities, local <br />jurisdictions, and utilities to work together on a combined approach for energy efficiency. He remarked that <br />whether or not they did receive the grant, the application process had catalyzed the collaboration between EWEB <br />and the City. <br /> <br /> Mr. Farmer observed that every time a customer went off the steam system, the cost per customer went <br />up; the last customer on the system would receive a “horrendous” heating bill. <br /> <br /> <br /> <br /> <br /> <br />