CA Review: GH
Meeting Date: Jan. 10, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Katie Hentrich, Senior Program Manager
[email protected], 442-339-2623
James Wood, Environmental Sustainability Director
[email protected], 442-339-2584
Subject: Memorandum of Understanding for a Home Energy Score Demonstration Pilot Program
Districts: All
Recommended Action
Adopt a resolution authorizing the City Manager or designee to execute a memorandum of understanding with the Energy Council to develop a home energy score demonstration pilot program.
E
xecutive Summary
The home energy score, developed by the U.S. Department of Energy and its national laboratories, provides homeowners, buyers and renters information about a home’s energy use. It is a measurement used in the city’s Building Code to gauge a project’s energy efficiency.
The city currently provides energy score assessments as a free service, using a contractor certified to perform this technical evaluation.
Staff are recommending the City Council approve a memorandum of understanding with the Energy Council that would support and promote this program with no additional cost to the city. The proposed memorandum of understanding requires the City Council’s approval and is attached to the recommended resolution (Exhibit 1).
Explanation & Analysis
Like a miles-per-gallon rating for a car, the home energy score is based on a standard assessment of energy-related elements of a home to easily compare energy use across homes.
A home energy score report estimates home energy use and associated costs, and provides potential energy solutions to cost-effectively improve the home’s efficiency. Each home energy score is shown on a simple 1-to-10 scale, with a 10 representing the most efficient homes.
Jan. 10, 2023
Item #2 Page 1 of 11
The city has an existing Home Energy Score Assessment Program1, with an ongoing pilot program that offers homeowners a free, customized assessment on a first-come, first-served basis through a designated assessor. Residents can fill out an online form and have the city’s contracted assessor inspect their home and offer potential energy saving solutions for free.
Certain scores from the Home Energy Score Assessment make home building projects eligible for exceptions on building permits, depending on the type, size and cost of the project. This exception was included in the updates to the city’s Building Code that the City Council adopted in March 2019, which exceeded the requirements in the California Energy Code.
The program is part of Carlsbad’s commitment to sustainability and supports the city’s Climate Action Plan.
The city has an opportunity to promote and potentially expand its Home Energy Score Assessment Program without additional cost.
The Energy Council is a California joint powers agency and the governing board of StopWaste2 in Alameda County in the San Francisco Bay Area. The council seeks funding on behalf of its member agencies to develop and implement programs and policies that reduce energy demand, increase energy efficiency, advance the use of clean, efficient and renewable resources, and help create climate-resilient communities.
The Energy Council is partnering with Pacific Gas & Electric Company to develop a home energy score demonstration pilot program that will use the Department of Energy’s home energy score tool to provide homeowners with information about energy use in their home and how to improve energy efficiency.
The Energy Council recently received funding from the Bay Area Regional Energy Network to develop and implement a home energy score pilot program in jurisdictions outside of the Bay Area. Under the proposed Memorandum of Understanding, the Energy Council would help expand Carlsbad’s existing pilot program by providing additional policy support, program promotion, training assessors, database project tracking, incentive funding coordination and other related services.
The training of assessors will help increase the local pool of technicians certified to perform these home assessments.
There is no cost to the city for these services.
By leveraging the Energy Council and the Bay Area Regional Energy Network’s experience managing similar programs in several jurisdictions, the city’s Home Energy Score Assessment Program could reach more residents and get more assessments performed than the city’s ongoing pilot program. Due to funding limitations, the Energy Council’s assistance is only available through June 2023.
1 Information about the program can be found at: https://www.carlsbadca.gov/departments/community - development/building/home-energy-score-assessment-program 2 StopWaste is a public agency responsible for reducing the waste stream in Alameda County and is jointly governed by three boards, one of which is the Energy Council.
Jan. 10, 2023
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Fiscal Analysis
The Energy Council will provide support services at no cost to the city. No additional city funding is being requested.
Options
Staff are recommending the City Council approve the memorandum of understanding under which the Energy Council will provide policy support for the city’s Home Energy Score Assessment Program, promote the program, train assessors, perform database project tracking, coordinate funding for incentives and other related services. This will enable the program to serve more homeowners without additional city funding. Not approving the proposed resolution would mean the city could not avail itself of these services.
Next Steps
With City Council approval, staff will begin working with the Energy Council on the tasks outlined in the scope of work in Attachment A of Exhibit 1. The Energy Council and PG&E partnership is expected to conclude June 30, 2023. Staff will use the information and outreach conducted during this partnership to continue improving the city’s Home Energy Score Assessment Program over time.
Environmental E valuation
Approving the memorandum of understanding with the Energy Council does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065 because it has no potential to cause either a direct or indirect physical change in the environment, or a reasonable, foreseeable indirect physical change in the environment.
Public Notification
This document was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date.
Exhibit
1. City Council resolution
Jan. 10, 2023
Item #2 Page 3 of 11
RESOLUTION NO. 2023-002
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER OR DESIGN EE TO EXECUTE
A MEMORANDUM OF UNDERSTANDING WITH THE ENERGY COUNCIL TO
DEVELOP A HOME ENERGY SCORE DEMONSTRATION PILOT PROGRAM WHEREAS, the Energy Council, which is a California joint exercise of powers agency, is partnering with Pacific Gas & Electric, which is a combined natural gas and electric company based in San Francisco, on a home energy score demonstration pilot program using the U.S. Department of Energy's home energy score tool for use in reach codes (i.e., local requirements that exceed the California Energy Code) of local jurisdictions; and
WHEREAS, the Energy Council has received funding to pilot a program using the Department of Energy's home energy score tool through the Bay Area Regional Energy Network; and WHEREAS, the City Council adopted Ordinance No. CS-347 on March 12, 2019, which includes a "reach code" that references the home energy score as an option for compliance or exemption from other energy efficiency requirements; and
WHEREAS, the Energy Council has received funding through the Bay Area Regional Energy Network for development and implementation of a home energy score pilot program in local jurisdictions located outside of the San Francisco Bay Area; and WHEREAS, the city has an existing Home Energy Score Assessment Program with a current pilot that provides free, customized scores to residents on a first-come, first-served basis; and WHEREAS, the city and the Energy Council desire to enter into a formal agreement for the Energy Council to provide the city with policy support and home energy score pilot program development, assessor trainings, database project tracking, incentive funding coordination, outreach development and other related services for a term of one year with an option to extend for one additional one-year period or parts thereof.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the City Manager or designee is hereby authorized and directed to execute the Memorandum of Understanding, attached hereto as Attachment A, with the Energy Council for a Home Energy Score Pilot Program.
Exhibit 1
Jan. 10, 2023 Item #2 Page 4 of 11
3. That the City Manager or designee is hereby authorized to extend the Memorandum of Understanding as described in Attachment A.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 10th day of January, 2023, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder.
None.
None.
None.
KrlTH BLACKBURN, Mayor
L,, SHERRY FREISINGER, City Clerk
I
v
(SEAL)
Jan. 10, 2023 Item #2 Page 5 of 11
DocuSign Envelope ID: 14FB9B9E-5856-41 BF-919A-90C3728011 A2
MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF CARLSBAD AND
ENERGY COUNCIL
Attachment A
FOR A HOME ENERGY SCORE DEMONSTRATION PILOT PROGRAM
THIS Memorandum of Understanding ("MOU") is made this \\ th day of January 2023, between the CITY OF CARLSBAD, a municipal corporation of the State of California, hereinafter referred to as the City; and ENERGY COUNCIL, a California joint exercise of powers agency, hereinafter referred to as Energy Council.
RECITALS
WHEREAS, Energy Council is partnering with Pacific Gas & Electric ("PG&E") on a home energy score ("HES") demonstration pilot program and using the U.S. Department of Energy's ("DOE") HES tool for use in reach codes of local jurisdictions (i.e., local requirements that exceed the California Energy Code); and ·
WHEREAS, Energy Council has received funding to pilot a program using the DO E's HES tool through the Bay Area Regional Energy Network (BayREN); and WHEREAS, the City adopted a Reach Code that references the DOE's HES as an option for compliance or exemption from other energy efficiency measures; and WHEREAS, Energy Council has received funding through the BayREN for development and implementation of an HES pilot program in local jurisdictions located outside of the San Francisco Bay Area, and
WHEREAS, the City has an existing HES Assessment Program with a current pilot that provides free, customized scores to residents on a first-come first-served basis; and WHEREAS, the City and Energy Council desire to enter into a formal agreement for Energy Council to provide the City with policy support and HES demonstration pilot program development, assessor trainings, database project tracking, incentive funding coordination , outreach development, and other related services.
NOW, THEREFORE, IN CONSIDERATION OF THESE RECITALS AND THE MUTUAL COVENANTS CONTAINED HEREIN, the parties agree as follows:
I. DEFINITIONS
"Department of Energy" shall mean the federal executive division responsive for coordinating and administering national energy policy.
"Home Energy Score" shall mean the tool developed by DOE and its national laboratories to provide homeowners, buyers, and renters directly comparable and credible information about a home's energy use.
Jan. 10,2023 Item #2 Page 6 of 11
DocuSign Envelope ID: 14FB9B9E-5856-41 BF-919A-90C3728011 A2 "Reach Code" requires building energy performance beyond what is required by the current California Building Energy Code and is codified in Chapter 18.30 'Energy Conservation Regulations' of the Carlsbad Municipal Code. "Demonstration Pilot Program" means the development of a program within the City to deploy DOE's HES tool in support of the City's Reach Code.
II. DEMONSTRATION PILOT PROGRAM SUPPORT. Energy Council will provide program support to the City as detailed in attached Exhibit "N', which is incorporated by this reference.
ill. PAYMENT. Energy Council will provide support services for the HES pilot program at no cost to the City, and in return, Energy Council will have the opportunity to pilot the HES tool in the City.
IV. MUTUAL INDEMNFICATION.
A. Energy Council agrees to indemnify, defend, and hold harmless the City and its officers, officials, employees, and volunteers from and against all claims, damages, losses and expenses including attorneys' fees, arising out of the Energy Council's development of the pilot program, caused by any negligence, recklessness, or willful misconduct of Energy Council, any subcontractor, or anyone directly or indirectly employed by any of them. This section will survive the expiration or early termination of this MOU.
B. City agrees to indemnify, defend, and hold harmless Energy Council and its officers, officials, employees, and volunteers from and against all claims, damages, losses and expenses including attorneys' fees, arising out of the City's pilot program, caused by any negligence, recklessness, or willful misconduct of the City, any subcontractor, or anyone directly or indirectly employed by any of them. This section will survive the expiration or early termination of this MOU.
V. INSURANCE. Energy Council will obtain and maintain for the duration of the MOU and any and all amendments, insurance from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VII"; OR with a surplus line insurer on the State of California's List of Approved Surplus Line Insurers (LASLI) with a rating in the latest Best's Key Rating Guide of at least "A:X"; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report.
Jan. 10, 2023 Item #2 Page 7 of 11 ·
DocuSign Envelope ID: 14FB9B9E-5856-41BF-919A-90C3728011 A2 A. Commercial General Liability (CGL) Insurance. Insurance written on an "occurrence" basis, including personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
B. Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Energy Council has no employees and provides, to City's satisfaction, a declaration stating this.
C. Professional Liability. Errors and orruss10ns liability appropriate to Energy Council's profession with limits of not less than $1,000,000 per claim. Coverage must be maintained for a period of five years following the date of completion of the work.
D. Additional Provisions. Energy Council will ensure that the policies of insurance required under this MOU contain, or are endorsed to contain, the following provisions:
E. The City will be named as an additional insured on Commercial General Liability which shall provide primary coverage to the City.
F. Energy Council will obtain occurrence coverage, excluding Professional Liability, which will b� written as claims-made coverage.
G. This insurance will be in force during the life of the MOU and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this MOU.
H. Nothing in this section shall prohibit Energy Council from being self-insured in the manner and to the extent that Energy Council self-insures for similar risks with respect to its operations, equipment and property. The manner in which such self-insured is provided and the extent of such self-insurance shall be set forth in a letter of self insurance, delivered to City and signed by an authorized representative of Energy Council, which fully describes the self-insurance program and how the program covers the risks set forth herein. If, at any time during the term of this MOU, Energy Council elects not to self-insure, Energy Council shall notify the City and the insurance requirements specified herein shall apply.
VI. TERM. The term ofthis MOU shall extend for a period of one (1) year from the date first above written. The MOU may be extended upon mutual agreement of the parties for one (1) additional one (1) year period or parts thereof, and executed by the City Manager or designee, based on the availability of funding for the pilot program. The parties will prepare a written amendment indicating the effective date and length of the extended MOU.
Jan. 10, 2023 Item #2 Page 8 of 11
DocuSign Envelope ID: 14FB9B9E-5856-41BF-919A-90C3728011 A2 VIL TERMINATION. This MOU may be terminated at any time by either pai1y upon seven (7) calendar days written notice to the other party.
VIII. AMENDMENT. This MOU may be amended by mutual written agreement of the parties.
IX. ENTIRE AGREEMENT. This MOU, together with any other document refened to or contemplated herein, embody the entire agreement and understanding between the parties relating to the sub ject matter hereof. Neither this MOU nor an y p rovision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought.
X. SEVERABILITY. The provisions of this MOU are severable. Should any provision herein be found or deemed to be invalid, this MOU shall be construed as not containing such provision and all other provisions which are otherwise lawful shall remain in full force and effect.
XI. COUNTERPARTS. This MOU ma y be executed in counterpart, all of which when put together shall constitute one and the same document.
XH. NOTICE. The name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of the Energy Council under this MOU.
For City
Name Katie Hentrich ---------
Title Senior Program M�nager ____ _
Department
Address
Environmental Sustainability
City of Carlsbad
1635 Faraday Ave.
Carlsbad, CA 92008
Phone No. 442-339-2623
Email [email protected]
ForEner�y
Council
Name Emily Alvarez _________ _
Title Program Manager _________ _
Address 1037 Webster St.
Oakland, CA 94612
Phone No. 510-891-6585
Email [email protected]
Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address.
Jan. 10, 2023 Item #2 Page 9 of 11
DocuSign Envelope ID: 14FB9B9E-5856-41 BF-919A-90C3728011 A2 IN WITNESS THEREOF, the parties hereto have executed this MOU on the date first above written.
ENERGY COUNCIL
By:
CIT OF CARLSBAD, a municipal
co oratio:p. of the State of California
By:
sco (sign here)
Timothy Burroughs Executive Director
(print name/title)
ATTEST:
By:
(sign here) FSHERRYFREISINGER, City Clerk
(print name/title)
APPROVED AS TO FORM:
CINDIE McMAHON, City Attorney
D��lll-½--
c �fy{ity Attorney
Jan. 10, 2023 Item #2 Page 10 of 11
Exhibit "A"
Scope of Services
Energy Council will providing the following services to the City:
• Set a goal for number of assessors needed to meet the City's program goals; • Utilize DOE HES partnership to enroll and support local assessors to complete scores, process scores, and comply with the DOE requirements for QA of scores; • Train assessors (in-person) and provide required DOE mentorship (in person or virtual) to grow a pool of qualified assessors in the North County San Diego region; • Create and maintain a qualified professionals list of assessors; • Advise on the design of and funding incentives to kickstart use of the pilot program; • Determine database customization needs, and customizing existing HES database for generating and tracking scores to include climate zone, utility, and other information as needed;
Develop a custom HES report with jurisdiction branding, desired recommendations, and connections to local incentive or upgrade programs;
• Design collateral and messaging for HES program outreach; • Publish monthly dashboards highlighting program participation and accomplishments; and
Draft pilot program reporting, including evaluation, accomplishments, suggestions for improvements, and creating a transition plan for implementation of HES program at the conclusion of pilot program.
City staff will coordinate with Energy Council as follows:
Engage City decision-makers and seek to secure relevant approvals for pilot program implementation;
Coordinate with City staff responsible for Reach Code implementation, such as building departments, sustainability staff, and permit counter staff; Present the policy before City Council and key stakeholder groups, as needed; Implement the requirements of the City's Reach Code, including processing HES projects when they are triggered by existing Reach Code policies; Help coordinate logistics of in-person assessor trainings, including contacting local work force and securing training locations;
• Design and seek to offer pilot program incentives;
Determine database and report customization needs;
• Utilize and co-branding outreach materials provided by Energy Council; • Participate in regularly scheduled project team meetings; and Determine whether to phase-out or continue implementation of HES program after the pilot program concludes.
Jan. 10, 2023 Item #2 Page 11 of 11