Title/Name/Summary
Energy Efficiency and Conservation Block Grant ARRA 2009
History
ATTACHMENTS:
Smart Energy Improvement Loan Program Service Map
Renewable Energy for Governmental Buildings Project Service Map
The American Recovery and Reinvestment Act of 2009, passed by the U.S. Congress and signed by the President of the United States in February of 2009, allocated $3.2 billion in Energy Efficiency and Conservation Block Grant (EECBG) formula funds to state, county, city and tribal governments across the country for energy efficiency and conservation initiatives. EECBG is a three (3) year formula grant given directly to state and local governments, like the Village of Orland Park, by the U.S. Department of Energy (US DOE). Cities, towns and Villages with a population greater than 35,000 people receive formula grant funds based on population.
The Village of Orland Park was allocated $520,700.00 in EECBG funds for local energy efficiency and conservation initiatives. The Village of Orland Park and the Village of Tinley Park were the only two municipalities in the southwest region of Cook County that received EECBG assistance.
EECBG Basic Requirements
In order to use EECBG funds, US DOE requires the submittal of an Energy Efficiency and Conservation Strategy (EECS) with the EECBG application. US DOE also requires entities acquiring EECBG funds to obligate all funds within 18 months from the effective date of award. In the event the funds are not obligated within 18 months, the department may cancel the award and take back the funding. The Recovery Act (ARRA) gives preference to activities that can be started and completed expeditiously. Based on funding levels, formula grants will be released in stages.
Orland Park EECBG Energy Efficiency Conservation Strategy
The Village of Orland Park Development Services Department has prepared the Energy Efficiency and Conservation Strategy (EECS) for Orland Park based on the plan that was completed for the 2009 ComEd Community Energy Challenge. That plan is referred to as the Village of Orland Park Energy Efficiency and Conservation Municipal Action Plan or ECOMAP.
EECBG funds are not enough to fund all proposed ECOMAP deliverables. However, four deliverables were chosen from ECOMAP to submit to US DOE as part of the project activities that will meet the EECS. In summary, the Orland Park EECS restates the ECOMAP primary goal to reduce the Village’s energy footprint by .5% to 1% or begin the downward trend in energy consumption in the first year and establish a benchmark for future reductions. EECBG will help the Village achieve this goal by focusing the EECS on the following four project activities. Energy efficiency projects are meant to reduce energy costs for residents and businesses, help them be more energy efficient, and save energy. This translates to financial assistance for residents and businesses.
Orland Park EECBG Project Activities
The Village proposal to US DOE contains the following four (4) activities:
1. The Village of Orland Park Smart Program/ Residential Rewards Program (RRP);
RRP is part of the Village of Orland Park Smart Program (still in development). The RRP is meant to provide residents with incentives to do (even minor) energy efficiency and other green upgrades to their homes and buildings. $25,000.00 of EECBG funds have been allocated to the Smart Program to assist in the Village’s administrative costs associated with implementing the Smart Program.
2. The Residential Exterior Insulation and Re-Siding Program (REIRS);
REIRS is meant to provide funding assistance for building improvements to residential buildings 50 years or older in five (5) specific subdivisions of Orland Park. These specific subdivisions are Cameno Re’al, Fairway Estates, Fernway, Gee’s Addition and Orland Hills Gardens. Many of the homes are ranch style and raised ranch style. In 2008, 10,419,424 kWh of energy were used by these subdivisions. REIRS has three objectives: a) energy efficiency by insulating the exterior of homes; b) neighborhood beautification; and c) put local carpenters and home-builders to work via energy efficiency projects. $50,000.00 of EECBG funds are allocated for REIRS. As a 50-50 program. REIRS will potentially leverage $50,000.00 in private funds. Ultimately $100,000.00 could be used for energy efficiency projects via this program.
3. The Smart Energy Improvement Loan Program (SEIL);
SEIL is a revolving loan that will provide assistance to businesses seeking to upgrade to high efficiency and high performance building systems and increase total energy savings through energy efficiency and conservation. This revolving loan fund would use EECBG funds as seed money to establish the first loans (and thereby obligate those funds per US DOE requirements). Return payments at low interest would allow the Village to grow the seed money and circulate more energy efficiency funds, which would allow more loans and more returns. US DOE has clarified that using federal EECBG funds for this purpose is desirable. This program will apply to commercial building owners and local businesses. The program will have a specific list of eligible projects that businesses and building owners will have to do in order to receive loan assistance. SEIL is only for energy efficiency projects. In the first year, the program will target commercial buildings and businesses along La Grange Road between Southwest Highway and 167th Street. Attached to this staff report is a map of the service area. This segment of the La Grange Road corridor was chosen since it consumes the most energy in the Village and the fund will help increase energy savings for the 2009 ComEd Community Energy Challenge. In the second year and thereafter, the program will be opened to all commercial building owners in the Village. $250,000.00 of EECBG funds are allocated as seed money for SEIL. This program has the potential of being a 50-50 program and can potentially leverage another $250,000.00 in private funds. Ultimately, $500,000.00 could be used for energy efficiency projects via this program. This program could be administered through the existing Economic Development Advisory Board (EDAB) revolving loan infrastructure or through a consulting agency or organization.
4. The Orland Park Renewable Energy for Governmental Buildings Project (REGB);
The REGB Project’s main objective is to install renewable energy systems such as solar panels and wind turbines on public sector buildings. The program will provide funding assistance to the local public sector to implement renewable energy technologies on their buildings. The local public sector includes municipal, township, school district, library, and fire district buildings from the jurisdictions that have facilities in Orland Park. REGB has the potential to act as a revolving loan fund for public sector agencies. Local governments will repay the assistance funds back to the Village and those funds will be leveraged for other projects and so on. As part of the Village’s Renewable Energy Program, REGB may allow residents and businesses in the Village to donate funds to the Village of Orland Park and obtain various incentives for supporting this public sector project. $195,700.00 in EECBG funds are allocated as seed money to finance this project. This fund is not proposed to be a matching program, but leveraging other existing governmental funds for energy efficiency projects while using EECBG money will be encouraged.
These programs will be jointly administered by the Development Services Department, the Village Manager’s Office and the Parks and Building Maintenance Department. When approval is received from US DOE and the grant funds are made available, these programs will return to the Committee for individual review and approval.
Cooperation with Neighboring EECBG Recipients
The US Department of Energy requires recipients of EECBG formula grants to clarify how they will cooperate with neighboring EECBG recipient jurisdictions. The Village of Tinley Park is Orland Park’s only neighbor to have received EECBG formula grants. The Village of Orland Park is planning to work with Tinley Park to identify opportunities for project collaboration. Tinley Park is currently developing their EECS. Orland Park ideas will be shared with Tinley Park to potentially identify possible energy efficient measures that can be jointly administered. In keeping with ARRA and US DOE’s stated cooperation request, the two Villages should/will work together to leverage as much funding as possible with the EECBG funds to their common benefit.
The Village also plans to work closely with ComEd, the local utility, through the Community Energy Challenge to utilize ComEd grant funds in conjunction with EECBG funds.
Subject to US Department of Energy Approval
The above mentioned programs are subject to US Department of Energy approval. The funding is guaranteed to the Village of Orland Park, but US DOE must first confirm each project meets EECBG goals and objectives before funding for that project will be released to the recipient. If one of the above projects does not conform to EECBG goals and objectives, US DOE will give the Village more opportunities to develop a project or program that will meet them.
As of August 19, 2009, US DOE has indicated that Orland Park’s EECBG application may be approved by August 24, 2009. A Congressional Notice was sent by DOE to Orland Park’s House Representative.
No matching funds are required for this grant.
On August 24, 2009 the Development Services and Planning Committee moved 2-0 to recommend to the Village Board to grant authorization to the Village Manager’s Office and the Development Services Department to present the Energy Efficiency and Conservation Block Grant application titled “Village of Orland Park EECBG 2009”, prepared by the Development Services Department, to the United States Department of Energy and commence EECBG related projects.
This is now before the Village Board for consideration.
Recommended Action/Motion
I move to approve granting authorization to the Village Manager’s Office and the Development Services Department to present the Energy Efficiency and Conservation Block Grant application titled “Village of Orland Park EECBG 2009”, prepared by the Development Services Department, to the United States Department of Energy and commence EECBG related projects.