HomeMy WebLinkAbout028214 RES - 06/23/2009RESOLUTION
ADOPTING THE CITY OF CORPUS CHRISTI'S ENERGY MANAGEMENT
PROGRAM TO REDUCE ENERGY AND FUEL CONSUMPTION, INCREASE
ENERGY EFFICIENCY, DEVELOP RENEWABLE ENERGY INITIATIVES, AND
IMPLEMENT A GREEN CITY PROGRAM.
WHEREAS, House Bill 3693 and Senate Bill 12 were passed and signed into law during the 80th
Texas Legislative Session in 2007 establishing electric energy conservation policy for our state;
WHEREAS, Senate Bill 12 impacts all political subdivisions located in nonattainment and near
non -attainment areas or affected counties, which includes Nueces County and thus the City of
Corpus Christi; and
WHEREAS, Senate Bill 12 requires these political subdivisions to establish goals to reduce their
electric consumption by 5% each year for the next six years beginning September 1, 2007;
WHEREAS, the City of Corpus Christi recognizes the value of implementing renewable energy
strategies for municipal facilities and encouraging our citizens to invest in renewable energy
systems;
WHEREAS, management of our vehicle fleet and associated fuel consumption is a critical
component of our overall energy management program;
WHEREAS, implementation of an effective recycling program and "green city" initiative will benefit
our citizens and landfill resources in the long term;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. The City Council adopts the City of Corpus Christi Energy Management Program
which is attached to and incorporated into this resolution.
SECTION 2. The Energy Management Program remains in effect until amended by the City
Council.
SECTION 3. The City Manager is directed to distribute this Energy Management Program to the
State Office of Energy Conservation in compliance with State law.
Armando Chapa
City Secretary
APPROVED: June 15, 2009.
Lisa Aguilar, Pissistant City Attorney
For City Attorney
THE CITY OF CORPUS CHRISTI
Joe Ame
Mayor
028214
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Corpus C¢risti, Texas
A3 of
2009
The above resolution was passed by the following vote:
Joe Adame
Chris Adler
Brent Chesney 7111
Larry Elizondo
Kevin Keishnick
Priscilla Leal
John Marez
Nelda Martinez
Mark Scott
028214
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CITY OF CORPUS CHRISTI
City of
Corpus
Christi
Energy Management Program
Approved: June 2009
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Introduction
At the State and Federal levels, energy consumption and conservation, renewable energy
development, climate change, and fuel diversification has been central to public policy debates in
almost every facet of American life. In the State of Texas, studies suggest our population will
double by the year 2050. Policymakers in Texas have begun the process of planning for the future
energy needs of our state and have focused significant attention not only on increasing generation
capacity and expand renewable energy goals, but they have also placed an emphasis on energy
conservation as a means to curb the need for additional generation.
During the 8011' Legislative Session of Texas in 2007, lawmakers focused their efforts on two bills
addressing the issue of energy conservation. House Bill 3693 set a statewide goal for energy
conservation, requiring regulated utilities, such as our own transmission and distribution utility AEP,
to offer energy efficiency programs which encourage energy conservation. In addition, Senate Bill
12 requires political subdivisions that are located in nonattainment or near nonattainment areas,
which includes Nueces County, to establish goals to reduce electric consumption by 5% each year
over the next six years, beginning September 1, 2007. Therefore, this provision applies to the City
of Corpus Christi. While this new requirement was passed as a goal, rather than a mandate, any
efforts to achieve results will no doubt require staff and departmental resources, and potentially a
significant financial investment by the City in equipment, systems, additional staff, and
infrastructure.
Currently, the City of Corpus Christi has no comprehensive program to manage their energy
consumption. Efforts in the past have focused departmentally on consideration of energy
efficiency equipment in the engineering process, such as LED -based traffic signalization,
replacement of existing equipment, such as air-conditioning, renovation of existing buildings, and
other efforts on a project specific basis. With over 800 electric accounts, annual electricity costs to
provide the public with essential services and meet our constituent's needs in Corpus Christi cost
the City approximately $15 million or roughly 2.5% of our overall budget. In addition, hybrid
vehicles have been considered in the past, but no comprehensive effort to systematically lower fuel
consumption has been put into practice. Committing resources to a process that will give our
departments the tools to better manage their energy and fuel requirements has the potential to
increase our overall operational efficiency, establish accountability, and hopefully achieve
significant savings, which if achieved as directed, represents a potential multi-million overall
savings to the City.
Finally, this conservation program also has the potential to lower the city's carbon footprint in an
era of increased focus towards sustainability and increased public attention on global climate
change. This program seeks to move our community towards implementation of green building
principles, and ultimately protect the city from the volatility of the energy markets in this country.
While policymakers have now forced the issue on us, instituting a comprehensive energy
management program that also includes a renewable energy development component within the
City of Corpus Christi makes operational and financial sense and is the right thing to do for our
community and environment.
Our program includes the following five key components:
➢ Energy Efficiency Goals for City -Owned Facilities
> Renewable Energy Applications and Development
> Fuel Consumption & Savings
> Investment in Hybrid Vehicles
> A "Green City" Program
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Energy Efficiency Program
Program Goals
The City of Corpus Christi will seek to fully comply with the goals established by the Texas
Legislature as contemplated in Senate Bill 12 during the 80Legislative Session. Our guiding
principal and overall goal will be a 5% reduction in energy consumption (kilowatt-hours) on an
annual basis over the next six years, beginning in FY 2009. While meeting this goal will be
challenging for a municipality of our size that consumes approximately 150 million kwhs on an
annual basis, we will seek to make strategic decisions to invest in conservation programs that
provide opportunities for a sustainable reduction in overall consumption in a cost effective
manner. In addition, part of our overall energy conservation program will incorporate strategies
for our industrial facilities to correct for any assessments by our local transmission and
distribution utility, AEP, for inefficient use of the electric grid (known as a power factor
adjustment provision in the AEP Tariff).
Departmental Responsibilities
Each major city user will be responsible for development and implementation of departmental
strategies towards achievement of the overall city goals for energy conservation. Resources
will be allocated for this purpose on a departmental basis and energy conservation initiatives
will be included as specific budget items by their department on an annual basis while this
program is in effect.
Major city user groups in order of largest to smallest users include the following:
> Water
> Wastewater
> Engineering (Traffic Signalization, Street Lighting)
> General Services (City Hall, American Bank Center, etc.)
> Airport
> Parks & Recreation
> Police
> Fire
> Gas
> Solid Waste
> Storm Water
Note: Any accounts that do not fall under the primary user groups above will be the
responsibility of General Services Department.
Department responsibilities will include:
> Designating a management -level staff member for energy management responsibilities
> Auditing of departmental electric accounts on an ongoing basis
> Consulting with designated energy consultant on departmental facilities and their usage
(HVAC, Lighting, Industrial Loads, etc.)
> Identifying strategies and projects to meet overall energy management goals, including
a financial cost -benefit analysis of each project
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> Monitoring results
> Coordination of departmental program with overall city program
Electric Account Auditing
The auditing of electric accounts by each department is the first step in the successful
implementation of an energy management program. Information must be gathered which
includes an accurate description of the load being served under each specific meter, monitoring
of usage trends on a 12 -month basis to determine any irregularities in consumption patterns
which could alert the city to an equipment problem, and ensuring each account is associated
with the correct department. These examples of auditing guidelines will help ensure attention
is being given to ownership of each of the city's approximately 800 electric accounts.
Staff Orientation for Electric Account Billing Systems and Reporting
On an annual basis, training will be provided to city departments and their designated energy
manager to ensure their familiarity with the billing systems, how to read their electric bills,
delivery service charges by AEP and how to run reports as necessary to fulfill these
requirements. These opportunities will be coordinated with the City's current Retail Electric
Provider, representatives from AEP, and other resources as needed.
Energy Consultant & Available Resources
Currently, the city has entered into a Memorandum of Understanding with AEP -Texas Central
Company to participate in their CitySmart Program. CLEAResult Consulting is the AEP partner
in providing technical assistance to the city as it pertains to best practices in the areas of
energy usage and energy efficiency. The city has engaged CLEAResult to provide technical
assistance as our program is formulated and implemented and will continue utilizing this
program. We are also in discussions with the State Energy Conservation Office to provide
energy audits through their "Preliminary Energy Assessment" service for a targeted number of
our buildings. In addition, City staff is recommending hiring an energy consultant to provide
additional expertise in identifying areas of opportunity for energy savings with the contract
being driven by savings performance and overall results. An alternative to the hiring of a
consultant would be to create an Energy Manager staff position to oversee and ultimately drive
the City's program.
>Engineering Processes
One of the most critical aspects of a successful energy management program is the
institutionalization of energy conservation and energy management philosophies into the
overall engineering processes at the city. Energy management, if implemented correctly, will
require a financial commitment that is ultimately paid out over time through avoided costs,
efficiencies gained, administrative simplicity, and standardization. Implementing our strategy at
the engineering level will ensure a consistent application of technology across city facilities.
Engineering Process Strategies Could Include:
o Investment in a comprehensive Energy Management System
o Standardization of Equipment (i.e. Utilizing Standard HVAC Equipment for Repair
Simplicity and Energy Management System Compatibility)
o Routine Weatherization Programs (i.e. Checking Old Buildings for Air Leakage and
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Insulation Needs)
o Lighting System Retrofitting (i.e. Upgrading Ballast Equipment, Bulbs, Installing Motion
Sensors)
o Installation of capacitor banks on industrial loads to eliminate or mitigate power factor
charges applied by AEP per tariff requirement.
Metrics to Determine Results
Metrics will need to be developed as potential Balanced Scorecard entries to measure
investment and ultimately our return on investment in energy management initiatives. Each
department will be required as part of their energy management programs to develop goals and
metrics for their program. Ultimately, our goal as a city is to do everything possible to meet the
5% annual reduction in energy consumption over the next six years as required by the State.
Our program is successful if we reduce consumption which translates into real savings and
ultimately allows us to better manage our costs. In the event carbon legislation is passed at the
federal level, management of our overall carbon footprint could also be a metric that we follow
as public policy dictates.
Renewable Energy Development
As a component of our overall energy management program we believe sustainability and
renewable energy must also be a consideration to explore. We will seek to invest in alternative
generation technologies such as wind generation, solar and battery technologies, and bio -fuel
applications from our landfills and wastewater treatment facilities to offset our consumption off
grid or create potential revenue streams through energy sales, where financially feasible. The
goal is to determine any opportunities for revenue or cost reductions through land leases,
opportunities to develop wind generation sources, opportunities to utilize landfill gas to produce
electric energy, and smaller strategic applications for wind and solar technology. Renewable
projects of this nature, because they are encouraged by the federal government, also bring the
potential for renewable energy credits which are a valuable commodity in today's financial
markets.
In addition, we could also consider the development of an educational driven renewable energy
technologies park in the coastal bend area as part of our overall strategy to market the uses of
these renewable energy opportunities and educate our youth in the process. It is critical to
choose the right partner in pursuing these types of renewable energy goals.
Two projects currently under review are as follows:
Wind Energy at Cefe Valenzuela Landfill:
Based on a site survey conducted in September 2008, the approximately 2000 acres of
available land at the Cefe landfill, in conjunction with an abundance of open range in the
surrounding area, presents a unique opportunity for a wind farm development. In addition,
access to nearby electric transmission facilities make our location a prime spot for wind turbine
placement. As part of our overall energy sourcing strategy, renewable energy could be a
critical component of serving our energy needs at the city. It is possible that up to 15 wind
turbines rated at up to 2.5 MW per turbine could be placed on Cefe land not currently being
utilized for solid waste disposal. A formal study would need to be conducted and consideration
given to permitting requirements by the TCEQ in placement of wind turbines at an active
landfill, which could present a challenge for this project. The revenue potential would include
the leasing of surface land rights for placement of the wind turbines as well as an equity
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position in the wind farm investment and potential future energy sales. In addition, the city
could contract to purchase the power generated from these sources in the future. We will
explore this opportunity through an RFP process to determine a potential partner.
Landfill Gas at Elliott Landfill:
Efforts have been made by city staff in the past to consider potential uses for the methane gas
production of the Elliott Landfill. While those past efforts have met limited success, we are
reassessing this as a potential renewable energy project in the future. As a result of the
closure of Elliott, the timing is good to consider gathering substantial amounts of the methane
gas produced and placing gas turbines in a strategic location to supply power to the nearby
Greenwood Wastewater Treatment Plant. A potential development project involves either
piping the methane gas from Elliott to Greenwood, and placing the gas turbines on-site at the
Greenwood Plant to offset some of the current electric consumption, which would represent an
avoided cost by the city in the future, or we could site a turbine at Elliott and place the power
back onto the grid at a market-based price determined by ERCOT. Permitting requirements
will also come into play under this scenario through the TCEQ. In either scenario, a partner
would also be determined through an RFP process.
Other Applications:
We will also continue to look for opportunities to install smaller renewable applications where
energy can be provided for smaller loads, such as school signals, small pumps, or applications
that are difficult or costly to extend traditional power lines to serve. Solar technologies and
smaller wind turbines are examples of renewable applications of this nature.
Fuel Consumption & Savings
Annually, the City of Corpus Christi spends approximately $7 million on fuel related expenses
for city -owned vehicles and city employees travel approximately 24 million miles in carrying out
their duties. Reducing fuel consumption in a meaningful manner will require a departmental
based review of existing practices to find and achieve savings. Staff believes achieving a
meaningful reduction in fuel consumption will involve every department and requires setting an
aggressive goal of a 5% annual reduction. This would result in approximately $350,000 of
savings a year. Strategies to reduce behavioral usage include:
D Better Scheduling and Organization of Daily Activities
D More Efficient Routing of Daily Trips and Patrols
D Reducing Idling of Vehicles
D Policy Review of City Vehicle Use for Personal Purposes
D Alternative Fuels (Compressed Natural Gas "CNG") and Hybrid Vehicles
D Investment in Fuel Management and Tracking Systems
Investment in City Hybrid Vehicles
The City fleet is comprised of approximately 2000 vehicles. On average, the City is replacing
100 to 150 vehicles per year. In addition, the City's fleet includes approximately 50 CNG fueled
vehicles and one lone hybrid vehicle. The benefits of investment in CNG vehicles is the
savings associated with the fuel. CNG is less costly than petroleum gas. Hybrid vehicles on
the other hand get better mileage than traditional vehicles. In both cases, these vehicles are
five to ten thousand dollars more expensive depending upon the model. Committing to
investment in hybrid vehicles will involve a financial commitment on the part of the City to
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achieve sustainable fuel efficiencies. Hybrid vehicles also offer environmental benefits in terms
of vehicle emissions that must be taken into consideration. If 5% of the vehicles we replace
annually are replaced with hybrids of some type, we would commit to purchasing no more than
10 hybrids a year, at a somewhat increased cost, but providing for a sustainable reduction in
fuel consumption.
A "Green City" Program
Establishment of Energy Conservation Marketing Program & Website
As many of other municipalities in the State of Texas (most notable the City of Houston,
http://www.houstonpowertopeople.com/) have accomplished, sharing information with the
public on energy management goals is an important component of an overall energy
management strategy. In addition, marketing programs that provide information to city
employees and citizens regarding energy savings tips and entering into strategic partnership to
provide information to the public are a critical component of our program. To this end, we are
considering joining a coalition of organizations through the "TexaslsHot" coalition to gain
access to valuable and up to date energy efficiency information of this nature. The intent on
establishing a formal website on the City of Corpus Christi website dedicated to energy
management programs would not only serve to highlight action the City is taking to conserve
energy, but it would also serve to provide tips to our citizens on how they might save money at
home or at their business as well. An educational tool of this nature would serve as an
additional means to informing the public regarding any programs at the local, state, or federal
level involving green buildings, sustainability programs, energy conservation, sources of
funding, and other valuable energy related programs available. We would also use Public
Service Announcements through CC TV to highlight our efforts and encourage citizen action as
well.
Development Services Efforts
It is important to note that Development Services is on a parallel track to review and implement
building standards to allow the citizens of our community to install residential and commercial
renewable applications as well. Our building officials will be working to ensure that the city
does their part to encourage safe standards consistent with other municipalities and national
building codes. We want our citizens to do their part as well for our environment and educating
the public on building requirements will be a key first step in the process.
Recycling Program
We also hope to reignite efforts at a more effective recycling program city-wide. While we have
seen limited success over the years, we have to make it easier for our citizens to recycle, which
is a critical component of being considered a "green city". We hope to re-evaluate our recycling
efforts and bring this in to the bigger effort of overall conservation and management of our local
resources.
Other Considerations
Grant Applications & Other Programs
The City of Corpus Christi intends to pursue state and federal funds available through grant
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programs, federal stimulus dollars, and other financial incentives offered and administered
through the State Energy Conservation Office of the State of Texas, AEP, and through the U.S.
Department of Energy, where available. Leveraging local dollars against federal and state
matching funds will allow the city to maximize the resources committed to this effort to upgrade
infrastructure and systems, explore renewable energy technologies, lower fuel consumption,
and other energy management opportunities that have been identified and championed by
public policy makers at the state and federal levels.
Impediments to Success
In closing, as stated in the introduction, the proposed energy management program is a
comprehensive approach to implementing a sustainable reduction in energy and fuel
consumption at the City of Corpus Christi in addition to looking at projects that will potentially
reduce costs or provide new revenue streams through renewable technologies. It will require a
serious commitment of resources, a thorough review of existing processes and policies, and
incentives for departments to act to change existing behaviors. Having a plan in place is the
first step to institutionalizing a program, but without commitment from our local policymakers,
support from the community, and financial resources to make it happen, this plan will ultimately
be unachievable.
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