Submitted By
Mindy Agnew, Sustainability Coordinator
Agenda Item Title
Title
Updated Analysis of Renewable Energy Projects
End
Overview
Overview
As a follow up to the June 11, 2018 Special Meeting, an updated analysis has been completed for the Community Choice Electricity Aggregation (CCA) sustainability funds. A review of the 2019 Community Energy Program Plan will be presented at the meeting. This is a successor Plan to the preliminary analysis of options for Village energy intiatives presented June 11, 2018.
End
Anticipated Future Actions/Commitments
Recommendation
Subject to consensus of the Board, staff will continue to pursue the recommended renewable energy options.
Body
Report
Staff continues its work with Mark Pruitt, Principal of the Illinois Community Choice Aggregation Network (ICCAN) and at the direction of the Village Board of Trusttee, staff has evaluated a range of renewable energy programs that can be supported by the Village (via the Community Choice Aggregation fund .03 of a penny/kWh fee) and the Future Energy Jobs Act (FEJA) in order to benefit the broadest population of Village residents.
The 2016 Illinois Future Energy Jobs Act (FEJA) increased the scope of energy efficiency incentives and renewable energy funding resources including a requirement that 10% of energy efficiency spending go to public buildings that include municipalities, and the Renewable Portfolio Standard (RPS) commits the state to produce 25% of its electricity from renewable energy by 2025. The incentives through FEJA are structured to provide the highest incentives for renewable energy projects deployed in the near-term. Similarly, the federal incentives decline over time.
Federal Investment Tax Credit Incentive Schedule:
30% through 2019
26% through 2020
22% through 2021
10% through 2022
Since the June 11, 2018 Village Board Special Meeting, staff updated recommendations and the metrics model based on requests from Village Board Trustees and the Environment and Energy Commission (EEC) to provide additional clarity on the rankings and controls for the sake of environmental and economic comparison of each recommendation of the community-led options for renewable energy project considerations presented in a report dated June 11, 2018. The Board asked that seven recommended options be analyzed for consideration for the use of the CCA funds. The updated recommedations are:
A-2 Solar Canopy for Village Hall Parking Lot
A-3 Rooftop Solar Array for Public Works
C-1 Offsite Community Solar for Village Facility Accounts
C-2 Offsite Community Solar for Village CCA Program (20% Goal)
D-2 Property Assessed Clean Energy (PACE) Program
E LED streetlighting upgrades
F Promote existing utility efficiency programs
Key operational metric characteristics were considered for all recommended options based on directions from Village Trustees and EEC commissioner recommendations. Below are the descriptions and relative weighting assigned to each metric
Category Description
Sustainability The amount of energy use reduction or renewable energy generation resulting from a program. Weighting:25%
Economics The balance between economic value delivered vs. program cost. Weighting 25%
Resources The level of Village resources required to manage the program. Weighting: 10%
Unknowns The level experience in the market to support the program or related technologies. Weighting: 5%
Longevity The life cycle duration of the assets supported by the program. Weighting: 10%
Complexity The level of complexity related to the management of the program.
Weighting: 5%
Scalability The level of funding flexibility the program can accommodate. Weighting: 5%
Calendar The likelihood that the program can commence in calendar year 2019.
Weighting: 10%
The Village can choose more than one of the renewable energy program options to reduce peak demand and provide a positive impact for all.
At the Regular Meeting of on July 9, 2018, the Village Board amended the Historic Preservation’s Work Plan to review the proposed options in the plan for renewable energy installations at Village Hall. This discussion is scheduled for the February 14, 2019 Historic Preservation Commission meeting.
Updates/Recommendations
Energy efficiency is one of the top rated renewable energy options. The FY19 Budget appropriated $220,000 to promote outreach costs and local incentives for existing Village Single-family rehabilitation loans and grants and Small Rental Rehabilitation Program, smart thermostats, residential LED lights, an updated Greenhouse Gas (GHG) inventory using at least 2015 data in order to set and maintain GHG reduction goals, and rolling out the industry standard Energy Star Portfolio Manager for Village facilities. This is supported by the high levels of economic benefits for residents, low technology risks, and management levels of program complexity. Program development is starting in order to facilitate delivery of the incentives this fiscal year.
LED technologies available for municipal street lighting provide high-quality residential lighting consuming less energy than traditional lighting used by the Village. The FY19 Budget appropriated $170,000 for the Village’s residential street lighting updates. This will result in the high level of economic benefits for residents, low technology risks and management levels of program complexity. Public Works is testing products and a contract will be presented to the Village Board following a public bidding process later this fiscal year.
Taking advantage of renewable energy incentives by negotiating Solar Subscriptions for both the Village Community Choice Aggregation and all of the Village facility accounts is also recommended by staff supported by the potential cost savings of the project, and the relatively low level of management required to facilitate and manage the subscriptions. The Village Board awarded a contract for our municipal electric use on January 28, 2019. Upon expiration of that contract in February 2020, the Village will be aligned to subscribe to community solar facllities in Nothern Illinois for its municipal electrical use. Alignment of the Community Choice Aggregation contact is a larger subscription and therefore, timing is dependent upon anticipated announcement of community solar facilities in Northern Illinois.
On-site solar energy array options for Village facilities have enough incentives to be considered for the Village with relatively low project costs with high value visibility to residents and businesses. On July 9, 2018, the Village Board referred to the Historic Preservation Commission (HPC) a request to review solar panels at Village Hall. Review of this as it relates to the the Village Hall Parking Lot is scheduled for a February HPC meeting.
The attached report entitled 2019 Community Energy Program Plan includes the detailed analysis that led to the above recommendations. Each option presents advantages and challenges that can be reviewed and discussed as part of the meeting. The Village CCA Fund 2018 cumulative (2016-2018) total is $1.2 Million. Some of the options consider use of these funds collected via the $0.3/kWh local fee for project costs.
Alternatives
The Village Board can delay action and seek additional information.