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HomeMy WebLinkAbout2016-02-23; City Council; Resolution 2016-040EXHIBIT 1 RESOLUTION NO. 2016-040 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, RECEVING THE CLIMATE ACTION PLAN IMPLEMENTATION COST ANALYSIS REPORT. WHEREAS, the City Council on Sept. 22, 2015, adopted the Climate Action Plan (CAP); and WHEREAS, the CAP contains actions that require additional workload for several city departments; and WHEREAS, the city's Environmental Management Division contracted the services of an energy consultant who developed the costs with input from interviews and meetings with staff as well as utilizing costing methodology recommended by the city's Finance Department and best practices in energy management from throughout the nation; and WHEREAS, the costing report has been reviewed and accepted by city staff. 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 Council receives the report entitled, "City of Carlsbad Climate Action Plan Implementation Cost Analysis," dated January 2016, attached as Exhibit A. II- I" III III III III PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 23rd day of February 2016, by the following vote to wit: AYES: Council Members Hall, Wood, Schumacher, Blackburn, Packard. NOES: None. ABSENT: None. MATT HALL, Mayor ATTEST: at I BARBARA ENGLESQF City Clerk (SEAL) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 t)! 14' EXHIBIT A City of Carlsbad Climate Action Plan Implementation Cost Analysis A Preliminary Estimate of the Incremental Costs to City Departments January 2016 Prepared for the City of Carlsbad (City of • Carlsbad alifornia Prepared by the Energy Policy Initiatives Center NEPIC ENERGY POLICY INITIATIVES CENTER UNIVERSITY OF SAN DIEGO SCHOOL OF LAW University of San Diego, 5998 Alcalit Park, San Diego, CA 92110 • www.sandiego.edu/epic About EPIC The Energy Policy Initiatives Center (EPIC) is a nonprofit academic and research center of the USD School of Law that studies energy policy issues affecting the San Diego region and California. EPIC integrates research and analysis, law school study, and public education, and serves as a source of legal and policy expertise and information in the development of sustainable solutions that meet our future energy needs. For more information, please visit the EPIC website at www.sandiego.edu/epic. City of Carlsbad CAP Implementation Cost Analysis January 2016 Table of Contents 1 Executive Summary 1 1.1 Key Findings 1 1.2 Cost Detail 2 1.3 Climate Action Plan Administration 3 1.4 Post-adoption Steps 3 2 Introduction 4 2.1 Purpose of Report 4 2.2 Key Findings 5 2.3 Organization of Report 6 3 About the Climate Action Plan 6 3.1 Climate Action Planning Process 7 3.2 General Plan Policies 7 3.3 Climate Action Plan Measures A-0 8 3.4 Current City Programs 9 3.5 Climate Action Plan Administration 9 4 Process and Method Used to Estimate Implementation Costs 9 4.1 Identify Climate Action Plan Tasks 11 4.2 Define Workload and Non-Staffing Needs 11 4.2.1 Ordinances 11 4.2.2 Transportation 12 4.2.3 Municipal Operations 12 4.2.4 Public Outreach and Education 12 4.2.5 CAP Administration 13 4.3 Establish Preliminary Cost Estimates 14 4.4 Quality Control and Update to Departments 14 5 Preliminary Estimate of Incremental Costs 14 5.1 Cost by Department 15 5.2 Overall Cost 15 6 Opportunities for Funding to Support CAP Implementation 17 Appendix A List of CAP Measures and Actions 1 Appendix B Additional Analysis of Preliminary Incremental Costs 1 B.1. Estimated Cost by Climate Action Plan Measure 1 B.2. Total Estimated Incremental Effort in Hours 3 Appendix C Opportunities for Funding to Support CAP Implementation 1 C.1. Energy Efficiency 1 C.1.1 Energy Efficiency Business Incentives (SDG&E) 1 C.1.2 Energy Efficiency Business Rebates (SDG&E) 1 C.1.3 Business Energy Solutions (SDG&E) 1 C.1.4 Savings By Design (SDG&E) 1 C.1.5 RCx Retrocommissioning Program (Clear Result) 1 C.1.6 Premium Efficiency Cooling Program (Conservation Services Group) 2 C.1.7 California Solar Initiative Thermal Program (CPUC) 2 C.2. Distributed and Renewable Energy 2 C.2.1 California Solar Initiative — Solar Electric (CPUC) 2 City of Carlsbad CAP Implementation Cost Analysis January 2016 C.2.2 Self-Generation Incentive Program (CP1JC) 2 C.2.3 New Solar Homes Partnership (CEC) 2 C.3. Energy Project Financing 2 C.3.1 On-bill Financing Program (SDG&E) 2 C.3.2 Financing for Energy Efficiency and Energy Generation Projects (CEC) 3 C.4. Alternative Transportation Fuels 3 C.4.1 Clean Vehicle Rebate Project (CARB) 3 C.4.2 Alternative and Renewable Fuel and Vehicle Technology Program (CEC) 3 C.5. Smart Growth and Alternative Transportation Modes 3 C.5.1 Smart Growth Incentive Program (SANDAG) 3 C.5.2 Active Transportation Grant Program (SANDAG) 3 C.5.3 iCommute (SANDAG) 4 C.5.4 Sustainable Transportation Planning Grant Program (Caltrans) 4 C.5.5 Active Transportation Program (Caltrans) 4 C.6. Land use, Housing, Community Development 4 C.6.1 Sustainable Communities Planning Grant and Incentives Program (Strategic Growth Council) 4 C.6.2 Affordable Housing and Sustainable Communities Program (Strategic Growth Council) 4 C.7. Energy Research and Development 5 C.7.1 Energy Policy Investment Charge (CEC) 5 C.8. Other 5 C.8.1 Cap-and-Trade Auction Proceeds (CARB) 5 C.8.2 Funding Opportunities Through California Resource Agency 5 City of Carlsbad CAP Implementation Cost Analysis January 2016 1 Executive Summary As part of the City of Carlsbad's General Plan Update, city staff prepared a Climate Action Plan (CAP), a new state regulatory requirement to reduce greenhouse gas emissions. The Climate Action Plan was approved by the City Council on September 22, 2015. The purpose of this report is to present preliminary cost estimates to implement the Climate Action Plan during the first five years. The estimates include costs from actions that would not otherwise be taken without the Climate Action Plan and could be reasonably foreseen, such as staff time and consultant fees. As a result, the estimates in this report do not provide the total cost of implementation to the City, rather the initial and foreseen costs of new programs and initiatives. The table below lists the categories of costs included in and excluded from this analysis. Cost Component Included Not Included City staff time to implement CAP Measures A-0 • Consultant time to implement CAP Measures A-0 • Other direct costs required to implement CAP Measures A-0 • General Plan policies and existing programs • Finance Department and Information Technology costs • Lost revenue • City capital expenditures and enforcement costs • Costs to residents and business • 1.1 Key Findings • The start-up costs in year one would be approximately $1 million. • The total cost for years two through five would be nearly $1.6 million. • By shifting priorities and workloads, it appears that some of the new work related to the plan could be done within existing staff resources. • Consultants would be needed for specific technical expertise staff does not have and to assist in implementation when staff resources are not available. • A new position, the CAP Administrator, was identified in Chapter 5 of the CAP. This position will oversee and coordinate implementation and provide annual status reports to Council and represents a new position. Energy Policy Initiatives Center 1 City of Carlsbad CAP Implementation Cost Analysis January 2016 1.2 Cost Detail • The preliminary estimated incremental costs required to implement CAP activities are summarized in the figures below by budget category, year, and by department. • The maintenance and operations category includes consulting costs and other non-personnel direct costs. A 10% contingency was included for personnel and M&O costs. Implementation Costs by Year $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 • Contingency -Capital (TBD) E Maintenance and Operations is Personnel Year 1 Years 2-5 Implementation Costs by Department $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 • Contingency Capital (TBD) • Maintenance & Operations al Personnel Community & Communications Public Works Economic Development Each measure described in the plan includes associated actions that require a level of effort from the Community & Economic Development, Office of the City Manager (Communications), and Public Works departments. The table below shows how these actions are distributed across these three city departments. Energy Policy Initiatives Center City of Carlsbad CAP Implementation Cost Analxsis January 2016 Comm. & Econ. CAP Measure Development Communications Public Works A • • • 0 0 * • • • • • • • • • • • • • • • 0 • * Total Actions 21 23 28 1.3 Climate Action Plan Administration Based on a review of the plan, discussions with staff and a comparison to existing citywide matrix teams and similar programs, the following tasks serve as a starting point for administration: • Develop a comprehensive implementation plan, including monitoring and reporting; • Lead a multi-departmental coordinating team; • Coordinate implementation of measures and provide technical support to participating departments and divisions; • Prepare an annual report and present the findings to Council; • Perform periodic GHG emission inventories; and • Update and revise the plan as needed based on monitoring activities and adaptive management. The citywide matrix team will include city staff from a variety of departments and divisions. The Environmental Management Division of Public Works will lead implementation activities. Participating departments and divisions will also perform some administration tasks, such as monitoring individual actions or collection of energy usage data for example. 1.4 Post-adoption Steps Next steps to implement the Climate Action Plan include the following: • Present CAP implementation status to Council and request appropriation of funds • Hire the CAP Administrator, • Establish the city-wide team, • Develop a detailed implementation plan, and • Identify and pursue external funding opportunities. Appendix C has a preliminary list of possible funding sources. Energy Policy Initiatives Center 3 City of Carlsbad CAP Implementation Cost Analysis January 2016 2 Introduction As part of the General Plan Update, the city prepared a Climate Action Plan (CAP). The CAP is intended to describe how greenhouse gas (GHG) emissions within Carlsbad will be reduced in accordance with State of California emission reductions targets.' The GHG emission reduction measures included in the CAP will require city action, including some new programs and projects. In June 2015, the Interim City Manager directed the Environmental Management Division of Public Works to develop a preliminary cost estimate for implementing the CAP and review associated work. Environmental Management contracted with the Energy Policy Initiatives Center (EPIC) at the University of San Diego to assist with the analysis and prepare this report. To our knowledge, a comprehensive report that analyzes a jurisdiction's costs for initial CAP implementation has not been publicly available in the San Diego region. 2.1 Purpose of Report The purpose of this report is to summarize preliminary cost information collected from city staff and reviewed by EPIC to assist with decision making and budgeting related to CAP implementation. The main focus of the analysis is to identify, both in hours and related direct costs, the necessary staff resources, consulting expertise, and other expenses related to outreach and education such as printing to implement the CAP, and secondly to discuss the capacity for existing staff and resources to perform the work. The analysis in this report is limited to new activities required for city staff to implement the CAP. It does not consider external costs such as future projects included in the Capital Improvement Plan (CIP) or costs to residents and businesses to comply with future CAP-related ordinances. It also does not consider incremental costs associated with implementation of General Plan policies and program, even if they contributed to reducing greenhouse gas emissions, because these activities would have been undertaken regardless of the existence of the CAP. Table 1 provides a summary of the costs included in this analysis. Table 1 Summary of Costs Included in Analysis Cost Category Status in Cost Analysis City staff time to implement Measures A-0 Included Consultant time to implement Measures A-0 Included Other direct costs required to implement Measures A-0 Included General Plan policies and programs Not Included Enforcement costs Not Included Finance Department costs Not included Information Technology costs Not Included Possible Lost revenue Not Included City capital expenditures to implement relevant Measures Not Included Cost reductions due to implementation of Measures Not Included Costs to residents and business Not Included 1 AB 32 set a target of achieving 1990 levels of emissions by 2020, Executive Order S-3-05 sets a long-term target of SO% below 1990 levels by 2050, and Executive Order B-30-15 sets a target of 40% below 1990 levels by 2030. Energy Policy Initiatives Center 4 City of Carlsbad CAP Implementation Cost Analysis January 2016 2.2 Key Findings Based on the analysis conducted for this report, the following key findings were identified: • Most of the effort needed to implement the CAP Actions can be conducted by current staff. Some of the work is already planned, budgeted, or underway; some can be scheduled in with • minor adjustments to existing workload; and some can be performed with assistance from consultants. This report provides no discussion or recommendations on the adjustments to existing workload. • Consultants are needed for support in technical subject areas in which staff does not have sufficient expertise, such as the Traffic Demand Management ordinance and electric vehicle charging station siting plans, and to assist with implementation where staff resources are not available. • A newly defined position tide, the CAP Administrator, was identified in the CAP. As described in Chapter 5 of the CAP, this position will be necessary to oversee and coordinate CAP implementation. More description of the duties of this position is included in Section 3.2.5 of this report. • A newly defined interdepartmental team was identified in the CAP. Because of the number and diversity of departments and divisions involved, a cross-departmental matrix team will be essential to coordinate communication and tasks to cost effectively implement the CAP. • The preliminary total estimated incremental cost to the City of Carlsbad to implement the CAP for the first five years is estimated to be $2,428,257. Of the total $994,686 or 41% would occur in year one and $1,433,572 or 59% in years two through five. This distribution of costs is attributable to the prioritization of Actions in the CAP and start-up costs for certain activities that may continue through year five of the implementation period represented here. • The preliminary estimated incremental cost associated with the CAP Administration for the first five years appears to be the single largest cost category at $1,274,857 accounting for about 50% of total implementation costs. Of the total CAP Administration costs, $342,686 (27%) would occur in the first year and $932,172 (73%) in years two through five. The CAP Administrator position would account for most of these costs. • Additional consulting costs to implement CAP Actions for the first five years are estimated at $1,008,400, with $613,000 (61%) in year one — primarily to support the short-term Actions in the CAP — and $395,400 (39%) in years two through five. • Additional costs (e.g., printed materials for public outreach) totaling $195,000 would be needed to implement CAP Actions, representing about 16% of the total implementation cost. About $89,000 (46%) of such costs would be required in the first year and $106,000 (54%) would be needed in years two through five. • To account for uncertainty regarding the specific work tasks and actual effort that would be required to complete the CAP Actions, a 10% contingency is recommended and was added to the total estimated incremental costs based on the analysis completed for this report. This would bring the total implementation cost for years one through five to $2,671,083. • Table 2 summarizes the total preliminary estimated incremental costs associated with implementing CAP Actions broken down by category both with and without the 10% contingency costs. Energy Policy Initiatives Center 5 City of Carlsbad CAP Implementation Cost Analysis January 2016 Table 2 Total Estimated Incremental Cost by Category= Cost Category Year 1 Years 2-5 Total Percentage of Total Consultants 613,000 395,400 1,008,400 42% Other Costs 89,000 106,000 195,000 8% Additional Staff (FTE) 292,686 932,172 1,224,857 50% Total 994,686 1,433,572 2,428,257 100% Percentage of Total 41% 59% 100% A nntl ACA 2.3 Organization of Report Section 2 provides background on the Climate Action Plan, including discussion of the role of the General Plan policies in GHG reduction, the specific Measures in the CAP that this analysis is based on, and existing programs and activities to reduce GHG emissions that are already being implemented. Section 3 discusses the methods and processes used to collect and analyze the preliminary incremental cost estimates provided by staff for the City of Carlsbad to implement the CAP. Section 4 presents a preliminary estimate of incremental costs associated with implementing the CAP, including costs broken down by department and a summary of estimated staff effort in hours. Section 5 provides a summary of the types of opportunities for external funding to support CAP implementation. Appendix A contains a listing of CAP Measures and Actions, adapted from Table 51 of the CAP. Appendix B contains additional analysis of the data collected during the study, broken down by individual CAP Measure. Appendix C contains a preliminary review of outside funding opportunities for CAP implementation. 3 About the Climate Action Plan The purpose of the CAP is to describe how GHG emissions within Carlsbad will be reduced in accordance with statewide targets. Some of these reductions will come from federal and state policies and programs and will not require specific city action. There are two areas where city action will directly affect GHG emissions in the community as a whole: General Plan policies and programs and CAP GHG reduction Measures. These are described in more detail below. The CAP will also provide a framework to streamline the California Environmental Quality Act (CEQA) review process for both public and private development projects by identifying the specific features necessary to reduce a project's GHG emissions. By including these project features, and implementing broader programs that affect the entire community, it is anticipated that the city will achieve the GHG emissions reduction targets described in the CAP. 2 Consultant and Other Costs would be categorized as maintenance and operations in City of Carlsbad budgeting nomenclature. Energy Policy Initiatives Center 6 Figure 1 Climate Planning and Adaptive Management Cycle Conduct Emissions Inventory Monitor Set and Report Reduction Progress Targets Develop and Adopt Climate Action Plan City of Carlsbad is Here Climate Planning and Adaptive Management Cycle Develop Implement ation Plan City of Carlsbad CAP Implementation Cost Analysis January 2016 3.1 Climate Action Planning Process There are several steps in the climate planning process (Figure 1). The first step is to estimate the greenhouse gas emissions that occur within the boundaries of the city. This inventory of emissions serves as the basis for developing reduction targets. A climate action plan contains Measures and Actions that demonstrate how emissions levels will reach adopted targets. Once a plan is adopted, many cities develop an implementation plan with details and timelines to execute the Actions included in the plan. Regular monitoring and reporting is required to evaluate progress towards the overall greenhouse gas reductions goals and to determine which individual Actions are effective. The results of this monitoring step can be used to update and modify the Measures and Actions as needed through a process of adaptive management to reach emissions targets. The City of Carlsbad adopted its CAP in September 2015. The next step would be to develop a detailed implementation plan that would serve as a roadmap for the CAP. The work conducted for this preliminary cost estimate, particularly identifying the main steps necessary to implement specific Actions in the CAP, could serve as the basis for a more detailed implementation plan. 3.2 General Plan Policies Some policies and programs in the updated General Plan will. reduce GHG emissions — see Section 3.6 of the Climate Action Plan for more details on these policies and programs. General plan policies that reduce greenhouse gas emissions include: • Bikeway System Improvements • Pedestrian Improvements and Increased Connectivity • Traffic Calming • Parking Facilities and Policies • Transportation Improvements Implementation costs associated with these policies and programs are not included in this analysis. This report focuses only on new costs associated with Measures and Actions included in the CAP since General Plan implementation and current programs are already budgeted or projected. It is important to note that there is overlap between some General Plan policies and CAP policies that can make it difficult to cleanly separate costs. For example, bike and pedestrian policies in the General Plan can serve the same goal of the Traffic Demand Management Measure included in the CAP. Energy Policy Initiadves Center City of Carlsbad CAP lrnplementadon Cost Analysis January 2016 3.3 Climate Action Plan Measures A-0 The CAP identified Measures beyond the policies and program included in the General Plan necessary to reach emission reduction targets. These Measures are listed in Table 3 along with the amount of greenhouse gas emissions reductions expected from each. Table 3 Climate Action Plan Greenhouse Gas Reduction Measures A-0 Greenhouse Gas Measure Emissions Reduction Letter GHG Reduction Measure (metric tons CO2e) A Install residential solar photovoltaics (PV) systems 10,136 • Install commercial and industrial PV systems 13,336 • Promote building cogeneration for large commercial and industrial facilities 1,067 • Encourage single-family residential efficiency retrofits 1,132 Encourage multi-family residential efficiency retrofits 351 Encourage commercial and city facility efficiency retrofits 18,377 • Promote commercial and city facility commissioning, or improving building operations 18,377 • Implementation of Green Building Code 179 Replace incandescent bulbs with LED bulbs 21,900 New construction residential and commercial solar water heater/heat pump installation and retrofit of existing buildings 11,604 • Promote transportation demand management (TDM) Increase zero-emissions vehicle travel • Develop more citywide renewable energy projects 4,580 Reduce the greenhouse gas intensity of water supply conveyance, treatment, and delivery 5,968 O Encourage installation of greywater and rainwater systems 1,205 Total Greenhouse Gas Reduction 185,919 23,549 54,158 Each Measure has a list of Actions needed. For example, Measure A, which seeks to promote installation of residential photovoltaic systems, has the following Actions. • A-1 Temporarily—for a period of one year—suspend residential and commercial PV system permit fees, together with a publicity campaign to promote PV systems installation • A-2 On a continuing basis, ensure that regulatory provisions - such as complying with regulations for zoning, structure height, permit submittal and review, etc. - do not hinder residential and commercial PV system installation • A-3 Adopt an ordinance, similar to those passed by Lancaster and Sebastopol, which requires new homes to install PV panels to offset a portion of their energy use. The CAP has 15 Measures, with a total of 40 Actions. Some of the Actions involve discrete items, such as adoption of an ordinance, and some are ongoing, such a publicizing incentives and rebates. Each Action has a timeframe for completion or initiation. The timeframes begin upon CAP adoption and are divided into three periods: short-term (within one to two years), mid-term (within two to five years) and long-term (five years and beyond). More detail on the CAP Measures, Actions and their timeframes is included in Appendix A. Energy Policy Initiatives Center 8 City of Carlsbad CAP Implementation Cost Analysis January 2016 3.4 Current City Programs City departments are currently implementing strategies for cost reduction purposes that are also related to CAP Actions and reduce GHG emissions such as energy efficiency in municipal facilities. The following is a sample of activities already underway that support the greenhouse gas reduction activities in CAP Actions. • Action F-1 — Energy Efficiency Retrofit of City Buildings: Public Works Property Division has developed a plan, funded through the Infrastructure Replacement Fund, for incorporating energy efficiency in existing city buildings when remodels and/or upgrades occur. • Action G-2 — Commission City Buildings. Public Works Property Division has incorporated commissioning in the design of the newly constructed Safety Training Center and the Alga Norte Community Park structures. They are including commissioning in the design and construction of the future Maintenance and Operations Center, Fire Station No. 3, and Pine Ave Park Community Center. • Action I-1 — Replace Lighting in City Facilities: Public Works Property Division has already replaced the majority of light bulbs with high-efficiency bulbs. • Action L-2 — Citywide Electric Vehicle Charging Station Siting Plan: A multi- departmental team has already taken the first step by engaging Center for Sustainable Energy to assist in evaluating city-owned facilities and properties for electric vehicle charging station suitability. • Action M-2 — Renewable Energy Installation at City Buildings: Public Works Property Division installed a photovoltaics array at the parking lot at Alga Norte Community Park and is preparing to install photovoltaics on the roof of the Safety Training Center. Public Works Utilities Division installed a hydroelectric pressure reducing station at Maerlde Reservoir. • Action N-1 — Reduce GHG Emissions from Water Utilities Conveyance, Treatment and Distribution: Carlsbad Municipal Water District has incorporated this Action into their current programs, including improved water conservation measures, pump replacement as needed, preventative maintenance, opportunistic elimination of pump stations no longer needed due to new development, and reduction of imported water supplies through increased use of recycled and availability of desalinated water. 3.5 Climate Action Plan Administration Details related to administration are limited in the CAP. Chapter 5 of the CAP discusses several necessary administrative tasks such as ongoing monitoring and reporting CAP progress, conducting periodic GHG emission inventories, and developing tools for development project permit review. It also calls for the city to designate a CAP Administrator and form an interdepartmental matrix team to coordinate CAP start-up activities and ongoing implementation. Section 3.2.5 of this report discusses CAP administration in more detail. 4 Process and Method Used to Estimate Implementation Costs The overall goal of this study was to develop a preliminary estimate of incremental costs associated with implementing the CAP, specifically the incremental staffing, consulting, and other costs that would be required to implement CAP Actions. The general steps in the process are as follows: determine the tasks required to implement CAP Actions, define workload associated with these tasks, determine whether existing staffing and other resources are sufficient, and determine the level Energy Policy Initiatives Center 9 Updates to Human Resources Department Directors Finance - New Staff Needed Estimate New Staff Costs Climate Action Plan Measures and Actions Identify Tasks with Division Managers and Staff Representatives Define Workload with Division Managers and Staff Representatives Identify Non-Staffing Needs with Division Managers and Staff Representatives (e.g., equipment, software Estimate Non-Staffing Costs Existing Staff Time and Capability? Estimate Consultant Costs Consultant Needed External Review by EPIC Internal Quality Control Review (Env Mgt & EPIC) Total Estimated CAP Implementation Cost City of Carlsbad CAP Implementation Cost Analysis January 2016 of additional staffing and other resources that might be required above and beyond existing resources. Figure 2 illustrates the general process used to identify resource gaps (blue boxes), estimate the cost of those resources (green boxes), conduct a review and update appropriate city staff (orange boxes). Figure 2 Conceptual Diagram of Process Used to Determine and Review Estimated Implementation Costs Update to Interim City Manager Energy Policy Initiatives Center 10 Measures and Actions Defined in CAP Measure A Promote Installation of Residential Photovoltaics Systems Action A-1: Temporarily suspend permits fees and promote photovoltaic systems. Action A-2: Ensure regulatory processes do not hinder photovoltaics system installation. Action A-3: Adopt an ordinance to require new homes to install • photovoltaics to offset a portion of their energy. Task 1: Develop policy language Task 2: Take policy to Council I Task 3: Develop I publicity campaign City of Carlsbad CAP Implementation Cost Analysis January 2016 4.1 Identify Climate Action Plan Tasks The first step was to identify a set of tasks to adequately represent the expected workload. The CAP includes Measures, which are high-level goals. Each Measure includes a series of Actions that the City of Carlsbad will take to reduce greenhouse gas emissions directly or to put in place policies or programs to reduce emissions. In turn, each Action will have associated tasks, which are not detailed in the CAP. To better understand the potential workload and more accurately estimate associated costs, Environmental Management staff identified preliminary tasks for each Action through a series of meetings with relevant divisional managers and staff representatives. Figure 3 illustrates the relationship between the CAP Measures, Actions, and examples of implementation tasks. Figure 3 Hierarchy of Measures, Actions, and Example Tasks Tasks Defined in Meetings with Division Managers and Staff Representatives 4.2 Define Workload and Non-Staffing Needs Once discrete tasks were identified for each CAP Action, it was determined that some Actions involve similar tasks that could be grouped together by function to increase efficiency. This grouping also helped to better understand the non-staffing needs for each Action and task. These functional groups include ordinances, transportation, municipal operations, public education and outreach, and administration. More detail for each is provided below. 4.2.1 Ordinances Twelve CAP Actions call for the adoption of ordinances related to new and existing development. These include the following: • Photovoltaic systems for new residential and new and existing non-residential buildings; • Energy audits for residential and non-residential building renovations; • Enhancements of energy efficiency beyond the requirements of the current Green Building Code; Energy Policy Initiatives Center 11 City of Carlsbad CAP Implementation Cost Analysis January 2016 • Zero-emission vehicle charging infrastructure for new residential construction and major renovations; and • Zero-emission vehicle parking requirements for new residential developments. • Solar water heaters and/or alternative energy based water heating systems for new residential and non-residential buildings; and • Cogeneration systems for new construction and renovations of large non-residential facilities. The Building and Planning divisions of the Community and Economic Development (CED) Department will lead the effort to draft and process the new ordinances. The tasks associated with creating ordinances are already a standard practice for CED. 4.2.2 Transportation Two CAP Actions related to transportation call for the development of a Traffic Demand Management (TDM) plan and the adoption of a TDM ordinance, respectively. Some of the tasks associated with these Actions, such as developing a baseline evaluation of existing traffic demand management features in existing businesses, are also needed to effectively implement some General Plan policies, therefore there is overlap in work effort. The Traffic and Mobility division of the Public Works Department will lead the effort to draft and process the new TDM plan and ordinance. 4.2.3 Municipal Operations Fourteen CAP Actions relate to the implementation of energy efficiency and renewable energy projects and programs at municipal facilities, including those operated by Carlsbad Municipal Water District (CMWD), as well as the development of electric vehicle charging infrastructure Examples of municipal CAP actions include the following: • Perform energy efficiency retrofits of city-owned buildings; • Replace incandescent or halogen light bulbs in city facilities with LED or similar lighting; • Construct an electric vehicle charging station powered photovoltaic solar panels at a city facility; • Prepare a community wide electric vehicle charging station siting plan; • Construct electric vehicle charging stations based upon the siting plan; • Update the city's Fleet Management Program to include low and zero-emission vehicles; and • Install renewable energy features, such as photovoltaic systems, on city buildings and parking lots. The tasks needed to implement these municipal Actions are led by the Property and Utilities divisions of the Public Works Department, and are or will be incorporated into the standard infrastructure replacement program and fleet purchasing program. As described in Section 2.4, many of these tasks, including the formation of a multi-departmental electric vehicle team, are already underway. 4.2,4 Public Outreach and Education Efforts by the Communications Department cut across many of the CAP Measures and Actions. Eleven of the fifteen CAP Measures directly call for conducting public outreach, education and citywide campaigns. Several associated CAP Actions would require efforts to encourage behavior Energy Policy initiatives Center 12 City of Carlsbad CAP Implementation Cost Analysis January 2016 change such as conducting projects to reduce emissions and participation in city- and utility- sponsored programs that would result in GHG reductions. Also, CAP Actions that call for developing and adopting an ordinance, will also require significant public outreach and education efforts. The anticipated tasks related public outreach CAP Actions would include: • Develop web-based and other promotional materials to publicize grant opportunities, incentives and rebate programs for residential and non-residential energy efficiency, building commissioning, cogeneration, and solar water heaters and heat pumps; • Facilitate stakeholders meetings for CAP related ordinances; • Host workshops on greywater and rainwater collection systems; and • Conduct a citywide "Energy Challenge" campaign. The tasks needed to implement the public outreach-related Actions will be led by the Communications Department. Other departments or divisions will be involved with some public outreach tasks, such as Public Works — Utilities and CED — Building for the greywater workshops and CED — Planning for the ordinance stakeholder meetings. 4.2.5 CAP Administration Based upon a review of the CAP, the climate planning and adaptive management cycle, discussions with staff, EPIC's research and expertise, and a comparison to existing city-wide matrix teams and similar programs', the following tasks serve as a starting point for CAP administration: • Develop a comprehensive implementation plan, including monitoring and reporting; • Lead a multi-departmental CAP coordinating team; • Coordinate implementation of CAP Measures and provide technical support to participating departments and divisions; • Develop guidelines for permit processing and CEQA procedures related to evaluating project level GHG emissions and the necessary emission reduction requirements; • Collect monitoring information on CAP implementation, including progress on completion of tasks associated with CAP Measures; • Prepare an annual report and present the findings at public hearing(s); • Perform periodic GHG emission inventories; • Research best practices and make recommendations for adaptive management; and • Respond to public inquiries and represent the city at regional, state and national meetings and symposia. The Environmental Management Division of Public Works will lead the tasks needed to administer the CAP. The other departments and divisions participating in the multi-departmental team will include the Building, Planning, Housing and Neighborhood Services and Economic Development divisions of the CED Department, the Traffic and Mobility, Property, and Utilities divisions of the Public Works Department, the Finance Department, the Information Technology Department, and the Communications Department. The participating departments and divisions will perform some CAP administration tasks, such as monitoring individual Actions or collection of energy usage data. 3 Existing programs in the City of Carlsbad that implement, monitor, report annually, lead a city-wide matrix team, liaise with regulatory agencies, and collaborate with community stakeholders include the Habitat Management Plan, Recycling and Trash, and the NPDES storm water protection programs. Energy Policy Initiatives Center 13 City of Carlsbad CAP Implementation Cost Analysis January 2016 Also, the CAP Administrator will assist departments and divisions with implementation of some Actions; however, most of the CAP administrative tasks are new to the city's lines of business. 4.3 Establish Preliminary Cost Estimates Once the tasks were identified, and Actions were grouped for efficiency, Environmental Management staff and EPIC conducted a series of meetings with divisional managers and staff representatives to further refine tasks and estimate costs. In cases where staff time and expertise to complete a task were inadequate, or in the case where staff time could not be reprioritized, consultant support was identified as necessary for implementing CAP activities. Similarly, staff determined the non-staffing resources needed and whether those resources already existed in the City of Carlsbad. In cases where additional non-staffing resources were needed those costs were identified and included in the overall total. 4.4 Quality Control and Update to Departments Quality control and data validation occurred at several stages. Primary validation occurred after total estimated costs were collected. EPIC and Environmental Management then performed an internal quality control check, updated Human Resources, reviewed costs with Department Directors, and reviewed the overall methodology with Finance. EPIC conducted a final review of all costs prior to inclusion in this report and presentation to the Interim City Manager. 5 Preliminary Estimate of Incremental Costs This section summarizes the results of the analysis to estimate preliminary incremental costs to the City of Carlsbad associated with implementing the CAP Actions. It contains a brief summary of the preliminary estimated costs by department, by expense category, and overall costs. As noted above, costs are broken down into two timeframes: first year and years two through five. Because there is limited information about the specific tasks that would be required to implement the CAP Actions, the estimates presented here are based on reasonable assumptions about the work to be performed. Due to this uncertainty, the cost estimates for years two through five are less certain than for the first year, and therefore, total preliminary incremental costs are presented along with a second total that includes a 10% additional contingency. Consulting costs are allocated to the year in which they are encumbered. For example, if a consultant's contract is for a defined period of time with no extensions, and all of the funds are set aside in the first year, then costs are allotted to the first year even though some expenditures may occur in later years. The analysis in this report assessed the level of effort required to perform the tasks related to the CAP Actions, including the staffing needs measured both in hours and full-time equivalent, consultant time when staff availability or expertise was limited, and other costs such as software, equipment, printed materials. Even where no new staff are required, hours are provided to illustrate the potential work effort necessary to implement the associated CAP tasks. Several cost categories were not quantified in this analysis. For example, there are instances where lost revenue would be experienced, such as Action A-1 that calls for waiving solar permitting fees for one year. The costs presented here also do not include any of the capital costs associated with city projects that may be done in support of the CAP Action. Lastly, enforcement costs related to new ordinances included in the CAP were not included here but will be determined in the future, as Energy Policy Initiatives Center 14 City of Carlsbad CAP Implementation Cost Analysis January 2016 necessary. Additional cost analysis is provided in Appendix B, including a breakdown of costs by CAP Measure. 5.1 Cost by Department The analysis in this report estimated incremental costs for each affected department to illustrate how the workload would be distributed across the City of Carlsbad organizational structure. Table 4 summarizes this breakdown. The highest percentage (65%) of total estimated incremental costs for CAP implementation are associated Public Works. As indicated in the breakdown of these costs the majority (53% of total costs) is for the CAP Administration and Monitoring, most of which will be conducted by a new CAP Administrator position to be located in Environmental Management. The Communications Department, which would play a significant role in conducting education and outreach activities across a wide range of the CAP Actions, accounts for just over 30% of total incremental costs. Potential costs associated with the Finance and Information Technology Departments were not included in this analysis but determining what cost impacts could accrue to those units would improve the overall preliminary estimate. Table 4 Estimated Incremental CAP Implementation Costs Broken Down by Department (Years 1-5) Department Staffing Costs Consultant Costs Other Non- Staffing Costs Cost Percentage of Total Cost Comm. & Econ. Dev. 0 $100,000 $0 $100,000 4% Communications 0 $558,000 $195,000 $753,000 31% Public Works $1,224,857 $350,400 $0 $1,575,257 65% Env Mgt $1,224,857 $50,000 $0 $1,274,857 53% Property $107,000 $0 $107,000 4% Traffic $175,000 $0 $175,000 7% Utilities $18,400 $0 $18,400 1% Finance TBD TBD TBD TBD TBD Information Technology TBD TBD TBD TBD TBD TOTAL $1,224,857 $1,008,400 $195,000 $2,428,257 100% Total with 10% Contingency $1,347,343 $1,109,240 $214,500 $2,671,083 5.2 Overall Cost The overall incremental cost to implement CAP Actions for the first five years is estimated at $2,428,257. Of this total, $1,008,400 is associated with consulting support in areas where current staff did not have expertise and $195,000 was for other costs such as printed materials for public outreach (Table 5). Additional staff, which represents the full-time CAP Administrator position described in Section 3.2.5, would account for 50% of total estimated incremental costs over the first five years, followed by consultants at 42%, and other costs at 8%. Just over 40% of the incremental costs would be incurred in the first year. This is due to the start-up nature of many of the activities and the fact that some consultant costs are allocated to the first year because that is when the funds would be encumbered. Energy Policy Initiatives Center 15 City of Carlsbad CAP Implementation Cost Analysis January 2016 Table 5 Total Incremental Cost to Implement CAP Actions by Cost Category Cost Category Year 1 Years 2-5 Total Percentage of Total Consultants 613,000 395,400 1,008,400 42% Other Costs 89,000 106,000 195,000 8% Additional Staff (FTE) 292,686 932,172 1,224,857 50% Total 994,686 1,433,572 2,428,257 100% Percentage of Total 41% 59% 100% , Total with 10% contingency 1,094,154 1,576,929 2,671,083 Table 6 summarizes the estimated staff effort required to implement the Actions included in the CAP. It contains the estimated hours to complete the tasks associated with CAP Actions and separates out the level of effort expected from existing staff and the incremental effort above what current staff can absorb. In the first year, it is estimated that a total of 3,475 hours of staff time, or 2.2 full-time equivalents would be required. For years two through five, the level of effort for CAP implementation is estimated to be a total 11,935 hours, equal to an average 1.9 full-time equivalents per year over the four years. Across the first five years, this would represent an average of 2 FTE annually. Of the total hours, new staff would be required for 2,012 hours (1.3 FTE) in year 1 and 6,408 hours for years 2-5. This additional effort represents CAP Administration tasks and the Administrator position, which on average over the first five years of CAP implementation would require just over 1 FTE. Table 6 Estimated Total Level of Effort to Implement CAP (Years 1-5)4 Cost Category Year 1 Annual FTE Years 2-5 Total Hours/ Average Annual FTE Existing Staff Hours 1,463 5,527 6,990 Existing Staff Full-Time Equivalent 0.9 0.9 0.9 New Staff Hours 2,012 6,408 8,420 New Staff Full-Time Equivalent 1.3 1.0 1.1 Total Staff Hours 3,475 11,935 15,410 Total Staff Full-Time Equivalent 2.2 1.9 2.0 4 Full-time equivalent was determined by dividing total hours by 1,551 hours. This is the available working hours for a management position provided by the Finance Department. Therefore, the quantity of hours presented in Table 5 and the FIE presented in Table 6 would not include the additional hours that would constitute work activities to bring a related management position to the full quantity of hours associated with an FTE. Year 1 FTE equals total hours divided by 1551 hours per year. Years 2-5 FTE equal total hours for years 2-5 divided by 1551 hours per year times 4 years. Similarly the annual average for all years (1-5) is the total number of hours divided by 1551 times 5 years. Energy Policy Initiatives Center 16 City of Carlsbad CAP Implementadon Cost Analysis January 2016 6 Opportunities for Funding to Support CAP Implementation Funding is available to subsidize costs for implementing most of the CAP Measures and to offset the activities taken by residents and businesses as a result of CAP Measures and Actions. In many cases the city can access funding from the same program as residents and businesses. The broad categories of funding opportunities are: energy efficiency; distributed and renewable energy; energy project financing; alternative fuels; smart growth and alternative transportation modes, land use, housing and community development; and other state programs. A preliminary list of possible funding opportunities is contained in Appendix C Energy Policy Initiatives Center 17 City of Carlsbad CAP Implementation Cost Estimate January 2016 APP bNDIC ES Energy Policy Initiatives Center Create a citywide "Energy Challenge," similar to the Department of Energy's Better Buildings Challenge, to promote cost-effective energy improvements, while having residents and building owners commit to reducing energy consumption. Adopt a residential energy conservation ordinance, which requires residential property owners to conduct and disclose an energy audit at the time of renovations over $50,000, to ensure that homes and residential developments meet specified low cost energy efficiency measures—such as requisite ceiling insulation, insulated pipes, water heater blankets and exterior door weather stripping. D-2 D-3 Short-term Public Works, Communications Short-term Comm. and Econ. Development, Communications City of Carlsbad CAP Implementation Cost Estimate January 2016 Appendix A List of CAP Measures and Actions Table 7 is adapted from Table 5-1 of the Climate Action Plan. Table 7 CAP Measures and Actions Implementation Actions Timeframe* Applicable Department(s) A - Promote installation of residential photovoltaic systems A-1 Temporarily—for a period of one year—suspend residential and commercial PV system permit fees, together with a publicity campaign to promote PV systems installation Short-term Comm. and Econ. Development, Communications A-2 On a continuing basis, ensure that regulatory provisions - such as complying with regulations for zoning, structure height, permit submittal and review, etc. - do not hinder residential and commercial PV system installation Ongoing Comm. and Econ. Development, Communications Adopt an ordinance, similar to those passed by Lancaster and A-3 Sebastopol, which requires new homes to install PV panels to offset a portion of their energy use Short-term Comm. and Econ. Development, Communications B - Promote Installation of commercial and industrial photovoltaic systems B-1 Adopt a commercial energy conservation ordinance requiring all new nonresidential developments with more than 50 cars surface parked or on roofs of parking structures to use PV panels over at least half of the surface/roof-parked cars, or provide equivalent energy conservation/generation by other means (over and above other requirements). Short-term Comm. and Econ. Development, Communications Adopt an ordinance requiring existing nonresidential developments to B-2 Mid-term Comm. and Econ. Development install PV panels to offset a portion of their energy use C - Promote building cogeneration for large commercial and industrial facilities C-1 C-2 Promote cogeneration by publicizing grant opportunities and financial incentives, such as the Self-Generation Incentive Program and feed in tariffs for cogeneration systems, for renovations of existing buildings by posting these on the city's website and by other means. Install cogeneration systems on large city facilities that can benefit from the installation of these systems, and apply for funding through the Energy Efficiency Financing for Public Sector Projects program, or other similar funding sources Short-term Public Works, Communications Mid- to Long-term Public Works Require cogeneration systems for large commercial and industrial C-3 facilities that have on-site electricity production, both for new construction and retrofits Mid-to Long-term Comm. and Econ. Development, Communications D - Encourage single-family residential efficiency retrofits Publicize available incentive and rebate programs, such as SDG&E's 0-1 Residential Energy Efficiency Program, on the city's website and by other Short-term Public Works, Communications means. Energy Policy Initiatives Center A-1 Promote the use of LED or other energy efficient lamps by publicizing 1-2 rebate programs and information from SDG&E on the benefits of the use of LED or other energy efficient lighting on the city's webpage. 1-3 Evaluate the feasibility of adopting a minimum natural lighting and ventilation standard, developed based on local conditions. Short-term Public Works, Communications Mid-term Public Works, Code Enforcement Division City of Carlsbad CAP Implementation Cost Estimate January 2016 E- Encourage multi-family residential efficiency retrofits Publicize available incentive and rebate programs, such as SDG&E's E-1 Residential Energy Efficiency Program, on the city's website and by other Short-term Public Works, Communications means. E-2 E-3 Create a citywide "Energy Challenge," similar to the Department of Energy's Better Buildings Challenge, to promote cost-effective energy improvements, while having residents and building owners commit to reducing energy consumption. Adopt a residential energy conservation ordinance, which requires residential property owners to conduct and disclose an energy audit at the time of renovations over $50,000, to ensure that homes and residential developments meet specified low cost energy efficiency measures—such as requisite ceiling insulation, insulated pipes, water heater blankets and exterior door weather stripping. Short-term Public Works, Communications Short-term Comm. and Econ. Development, Communications F - Encourage commercial and city facility efficiency retrofits Undertake a program of energy efficiency retrofits for city-owned buildings, with the goal of 40 percent reduction in energy use, beginning Short-term Public Works with retrofits that would result in the most substantial energy savings. Promote available incentive and rebate programs, such as SDG&E's Public Works,Comm. and Econ. Energy Efficiency Business Rebates and Incentives Program, on the city's Short-term Development, Communications website and by other means F-3 Adopt a commercial energy conservation ordinance, which requires property owners to ensure that commercial buildings meet specified energy efficiency measures—such as requisite heating, ventilation, and air conditioning improvements, service water system requirements, and improved refrigeration equipment, at the time of conducting renovations over $50,000 in valuation Short-term Comm. and Econ. Development G - Promote commercial and city facility commissioning Promote commissioning programs on the city's website such as San Public Works, Comm. and Econ. G-1 Short-term Diego RCx, and similar programs for commercial buildings Development, Communications Commission city facilities to improve building operations and reduce G-2 energy costs, with a goal of 40 percent energy reduction in 30 percent of Mid-term Public Works city facility square footage. H - Implement green building measures H-1 Adopt residential and commercial energy conservation ordinances requiring a 5 percent improvement in energy efficiency for residential and nonresidential new construction, above the existing City of Carlsbad green building code. Short-term Comm. and Econ. Development, Communications I - Promote replacement of incandescent and halogen bulbs with LED or other energy efficient lamps 1-1 Replace 50 percent of incandescent or halogen light bulbs in city facilities with LED or similarly efficient lighting, or follow SANDAG Energy Roadmap recommendations for lighting in city facilities, whichever results in greater energy savings Short-term Public Works Energy Policy Initiatives Center A-2 F-1 F-2 City of Carlsbad CAP Implementation Cost Estimate January 2016 J - New construction residential and commercial solar water heater/heat pump installation & retrofit of existing residential 1-1 Promote the installation of solar water heaters and heat pumps by publicizing incentive, rebate and financing programs, such as PACE programs and the California Solar Initiative for renovations of existing buildings by posting this information on the city's website and by other means. Short-term Public Works, Communications 1-2 Adopt residential and commercial energy conservation ordinances requiring new residential and commercial buildings to install solar water heaters or heat pumps, or use alternative energy (such as PV-generated electricity) for water heating needs Short-term Comm. and Econ. Development, Communications K - Promote transportation demand management strategies K-1 Adopt a citywide transportation demand management (TDM) plan, as described in the General Plan Mobility Element, detailing a mix of strategies to reduce travel demand, specifically of single occupancy vehicles. SANDAG's 2012 "Integrating Transportation Demand Management Into the Planning and Development Process" provides a guide to designing and implementing a TDM plan and will be used as a reference document to develop the city's TDM plan. TDM strategies evaluated in the plan include parking ordinances, subsidized or discounted transit programs, transit marketing and promotion, carsharing, parking pricing, and bike parking Short-term Public Works, Comm. and Econ. Development K-2 Adopt a TDM ordinance, defining a minimum trip generation threshold for nonresidential development projects. The city will set performance requirements for minimum alternative mode use based on project type. All projects above the threshold shall submit a TDM plan, which includes a description of how the minimum alternative mode use will be achieved and maintained over the life of the project. Potential TDM trip reduction measures can include carpool and vanpool ridematching services; designated employees as contacts for trip reduction programs; providing a direct route to transit in coordination with NCTD; developing public- private transit partnerships; passenger loading zones; pedestrian connections; showers and clothes lockers; long—term bicycle parking and shuttle programs Mid-term Public Works, Comm. and Econ. Development, Communications L - Promote an increase in the amount of zero-emissions vehicle travel L-1 Working with industry partners, construct a "PV to EV" pilot project to install a PV charging station at a city facility (such as the Faraday Center), to charge city ZEVs. The purpose of the pilot project would be to evaluate the feasibility of incorporating more ZEV into the city's fleet. Short-term Public Works,Comm. and Econ. Development L-2 Prepare a community-wide charging station siting plan, which evaluates site visibility and exposure, EV driving ranges, high volume destinations, locations with high ownership or interest in EVs, and cost of construction. Short-term Public Works, Comm. and Econ. Development L-3 Construct ZEV charging stations based on the community-wide charging station siting plan described in L-2 above. The ZEV charging stations will be funded by grant funds when available, and the city will post signage directing ZEVs to charging stations Mid-term Public Works Offer dedicated ZEV parking, and provide charging stations adjacent to L-4 ZEV parking as identified in the community-wide charging station siting plan Mid-term Public Works,Comm. and Econ. Development L-5 Adopt requirements for ZEV parking for new developments Short-term Comm. and Econ. Development, Communications Adopt a residential energy conservation ordinance, similar to Palo Alto, L-6 requiring the installation of EV chargers or pre-wiring in new residential Short-term construction and major renovations Comm. and Econ. Development, Communications L-7 Update the city's Fleet Management Program to include a low and zero- emissions vehicle replacement/purchasing policy. Increase the proportion of fleet low and zero—emissions vehicle miles traveled to 25 percent of all city-related VMT by 2035 Short-term Public Works Energy Policy Initiatives Center A-3 City of Carlsbad CAP Implementation Cost Estimate January 2016 M - Develop more citywide renewable energy projects Conduct a feasibility study to prioritize citywide renewable energy M-1 Short-term Public Works projects. Incorporate renewable energy measures such as PV system installation on city buildings and parking lots, or microturbine installation on city M-2 Mid- to Long-term Public Works facilities, with the goal of producing approximately 12,000 megawatt- hours per year Pursue available funding sources for the construction of renewable M-3 energy projects by the city, such as Energy Efficiency Financing for Public Mid- to Long-term Public Works - Sector Projects and SGIP N - Reduce the GHG intensity of water supply conveyance, treatment and distribution Improve water utilities (including water supply, wastewater, and recycled N-1 water) conveyance, treatment and distribution, and other system Mid- to Long-term Public Works, CMWD improvements 0 - Encourage the installation of greywater and rainwater systems Host workshops on greywater and rainwater collection systems through the Carlsbad Municipal Water District, or partner with existing workshop 0-1 Mid- to Long-term CMWD, Communications providers, for homeowners interested in installing systems suitable for their property 0-2 Create a design reference manual, or provide links to an existing one, for Mid- to Long-term Comm. and Econ. Development, the design of greywater and rainwater collection systems. CMWD Evaluate the feasibility of offering a rebate for residential greywater systems that require a permit to cover the cost of obtaining a permit. 0-3 Mid- to Long-term CMWD Energy Policy Initiatives Center A-4 City of Carlsbad CAP Implementation Cost Estimate January 2016 Appendix B Additional Analysis of Preliminary Incremental Costs The preliminary estimated incremental costs for implementing the CAP presented above were derived by summing the task level cost information gathered from the participating departments and divisions. This appendix contains analysis of the estimated cost for each Measure, including total costs, costs by expense type, total hours, and total FTE. This information will be helpful in planning short-term resource allocations, budget decision-making, and monitoring CAP implementation expenditures. B.1. Estimated Cost by Climate Action Plan Measure The analysis in this report estimated the incremental level of effort and cost for implementing each CAP Measure (Table 8). CAP Administration and Monitoring represent the highest estimated incremental costs, mainly due to the new CAP Administrator position. Note that a portion of these tasks will be completed by consultants and are additional to the costs for the CAP Administrator. Consultant and other costs related to Measure D (encourage single-family residential efficiency efforts), Measure E (encourage multi-family residential efficiency retrofits), and Measure K (promote transportation demand management (TDM) strategies) each account for 9% of the total estimated incremental cost over the first five years. Actions associated with Measures D and E include publicizing available incentives and rebate programs, creating a citywide "Energy Challenge," and adopting a residential energy conservation ordinance Actions associated with Measure K include adopting a citywide TDM plan and a related ordinance Also, Table 8 does not include costs for Measures M and N because related activities are already budgeted and/or existing staff is expected to complete the work tasks. Capital costs associated with these two Measures are also excluded. Energy Policy initiatives Center B-1 City of Carlsbad CAP Implementation Cost Estimate January 2016 Table 8 Total Incremental Cost to Implement CAP Actions by Measure (Years 1-5) Measure Letter GliG Reduction Measure Total Cost (Years 1-5) Measure Cost as % of Total Cost A Install residential solar photovoltaics (PV) systems 36,008 1% B Install commercial and industrial PV systems 64,200 3% C Promote building cogeneration for large commercial and industrial facilities 93,791 4% D Encourage single-family residential efficiency retrofits 217,008 9% E Encourage multi-family residential efficiency retrofits 217,008 9% F Encourage commercial and city facility efficiency retrofits 43,791 2% G Promote commercial and city facility commissioning, or improving buliding operations 24,000 1% H Implementation of Green Building Code 28,708 1% I Replace incandescent bulbs with LED bulbs 33,091 1% J New construction residential and commercial solar water heater/heat pump installation and retrofit of existing buildings 52,708 2% K Promote transportation demand management (TDM) 228,500 9% L Increase zero-emissions vehicle travel 91,189 4% M Develop more citywide renewable energy projects" 0 0% N Reduce the greenhouse gas intensity of water supply conveyance, treatment, and delivery" 0 0% 0 Encourage installation of greywater and rainwater systems 21,400 1% CAP Administration and Monitoring*" 1,276,857 53% Total 2,428,257 100% Total with 10% contingency 2,671,083 "Associated costs are already budgeted or work is expected to be conducted by existing staff without any non-staffing costs. "Includes hours for a certain monitoring tasks that are Measure-specific and will be executed by the appropriate Department staff. No additional cost is associated with these hours. Table 9 illustrates the total incremental cost for the first five years broken into the cost categories analyzed for this report: staff, consultant, and other. As indicated above about 50% of total incremental costs are associated with CAP Administration and Monitoring, 42% for consultants, and 8% for other costs. As noted in Section 3.2.5, the CAP Administrator will provide technical support to participating departments and divisions and this effort may direcdy benefit the implementation of certain CAP Measures. In Table 7, these costs are not included in the individual Measures but rather in overall CAP Administration and Monitoring. Energy Policy Initiatives Center B-2 City of Carlsbad CAP Implementation Cost Estimate January 2016 Table 9 Total Incremental Cost by Expense Type for Climate Action Plan Measures ears 1-5) Measure Letter OHO Reduction Measure Total Staff Costs* Total Consultant Costs Total Other Costs Total Costs A Install residential solar photovoltaics (PV) systems 0 19,424 16,583 36,008 B Install commercial and industrial PV systems 0 60,000 4,200 64,200 C Promote building cogeneration for large commercial and industrial facilities 0 77,091 16,700 93,791 D Encourage single-family residential efficiency retrofits 0 175,424 41,583 ' 217,008 E Encourage multi-family residential efficiency retrofits 0 175,424 41,583 217,008 F Encourage commercial and city facility efficiency retrofits 0 27,091 16,700 43,791 G Promote commercial and city facility commissioning, or improving building operations 0 8,000 16,000 24,000 H Implementation of Green Building Code 0 27,424 1,283 28,708 I Replace incandescent bulbs with LED bulbs 0 17,091 16,000 33,091 J New construction residential and commercial solar water heater/heat pump installation and retrofit of existing buildings 0 35,424 17,283 52,708 K Promote transportation demand management (TDM) 0 225,000 3,500 228,500 L Increase zero-emissions vehicle travel 0 90,606 583 91,189 M Develop more citywide renewable energy projects** 0 0 0 0 N Reduce the greenhouse gas intensity of water supply conveyance, treatment, and delivery*" 0 0 0 0 0 Encourage installation of greywater and rainwater systems 0 18,400 3,000 21,400 CAP Administration and Monitoring**" 1,224,857 52,000 0 1,276,857 Total 1,224,857 1,008,400 195,000 2,428,257 Total with 10% contingency 1,347,343 1,109,240 214,500 2,671,083 *Total staff costs represent the cost for the CAP Administrator. **Associated costs are already budgeted or work is expected to be conducted by existing staff without any non-staffing costs. **Includes hours for a certain monitoring tasks that are Measure-specific and will be executed by the appropriate Department staff. No additional cost is associated with these hours. B.2. Total Estimated Incremental Effort in Hours Table 10 summarizes the total incremental effort (hours) to implement CAP Measures for the first year and years two through five. The largest number of hours is for CAP Administration and Monitoring activities, which are staff-intensive. The bulk of these hours will occur in years two through five once implementation and monitoring tasks are underway. Also, several other departments will conduct monitoring tasks; associated hours are included in the CAP Administration and Monitoring category. Other Measures have relatively few hours associated with implementation. This is due to the fact that consultants will be used to augment resources. Also, no hours were provided by department because many tasks involve multiple departments and there is not a clear way to allocate hours to each department in such cases. Energy Policy Initiatives Center B-3 City of Carlsbad CAP Implementation Cost Estimate January 2016 Table 10 Total Incremental Effort in Hours to Implement CAP Measures Measure Letter GHG Reduction Measure Hours Year 1 Hours Years 2-5 Total Hours A Install residential solar photovoltaics (PV) systems 75 12 87 B Install commercial and industrial PV systems 55 187 242 C Promote building cogeneration for large commercial and industrial facilities 186 168 354 D Encourage single-family residential efficiency retrofits 169 220 389 E Encourage multi-family residential efficiency retrofits 170 220 390 F Encourage commercial and city facility efficiency retrofits 66 168 234 G Promote commercial and city facility commissioning, or improving building operations 52 156 208 H Implementation of Green Building Code 23 12 35 I Replace incandescent bulbs with LED bulbs 56 168 224 J New construction residential and commercial solar water heater/heat pump installation and retrofit of existing buildings 75 168 243 K Promote transportation demand management (TDM) 200 212 412 L Increase zero-emissions vehicle travel 235 35 270 M Develop more citywide renewable energy projects" 0 0 0 N Reduce the greenhouse gas intensity of water supply conveyance, treatment, and delivery" 0 0 0 0 Encourage installation of greywater and rainwater systems 0 842 842 CAP Administration and Monitoring** 2,112 9,368 11,480 Total 3,475 11,935 15,410 "Associated work is expected to be conducted by existing staff. ""Includes hours for a certain monitoring tasks that are Measure-specific and will be executed by the appropriate Department staff. No additional cost is associated with these hours. Table 11 converts the total hours required for each Measure and associated activity to full-time equivalents (FTE). These totals include hours associated with the CAP Administrator. In year one, an estimated citywide total of 2.2 FTE of effort would be required to implement cap activities. Of this total, 1.2 FTE would be additional and 0.9 FTE represents effort to be completed by existing staff. The estimated average citywide level of effort per year in years two through five would be 1.9 FTE. Over the first five years, the annual average level of effort citywide would be 2 FTE per year, 1 FTE of which is the CAP Administrator position. Energy Policy Initiatives Center B-4 City of Carlsbad CAP Implementation Cost Estimate January 2016 Table 11 Total Estimated Incremental FTEs Required to Implement CAP Measures5 Measure Letter GHG Reduction Measure FTE Year 1 Average FTE Per Year Years 2-5 Average FTE Per Year Years 1-5 A Install residential solar photovoltaics (PV) systems 0.0 0.0 0.0 B Install commercial and industrial PV systems 0.0 0.0 0.0 C Promote building cogeneration for large commercial and industrial facilities 0.1 0.0 0.0 D Encourage single-family residential efficiency retrofits 0.1 0.0 0.1 E Encourage multi-family residential efficiency retrofits 0.1 0.0 0.1 F Encourage commercial and city facility efficiency retrofits 0.0 0.0 0.0 G Promote commercial and city facility commisisoning, or improving buliding operations 0.0 0.0 0.0 H Implementation of Green Building Code 0.0 0.0 0.0 I Replace incandescent bulbs with LED bulbs 0.0 0.0 0.0 J New construction residential and commercial solar water heater/heat pump installation and retrofit of existing buildings 0.0 0.0 0.0 K Promote transportation demand management (TDM) 0.1 0.0 0.1 L Increase zero-emissions vehicle travel 0.2 0.0 0.0 M Develop more citywide renewable energy projects" 0.0 0.0 0.0 N Reduce the greenhosue gas intensity of water supply conveyance, treatment, and delivery" 0.0 0.0 0.0 0 Encourage installation of greywater and rainwater systems 0.0 0.1 0.1 CAP Administration and Monitoring** 1.4 1.5 1.5 Total Per Year 2.2 1.9 2.0 *Associated work is expected to be conducted by existing staff. **Includes hours for a certain monitoring tasks that are Measure-specific and will be executed by the appropriate Department staff. 5 Full-time equivalent was determined by dividing total hours by 1,551 hours. This is the available working hours for a management position provided by the Finance Department. Energy Policy Initiatives Center B-5 Appendix C Opportunities for Funding to Support CAP Implementation Below is a preliminary list of possible funding opportunities to assist with CAP implementation. Identifying other available funding sources, both current and in the future, is one of the duties of the CAP Administrator. C.1. Energy Efficiency6 The following energy efficiency rebate and incentive programs could provide funds to offset costs related to implementing Measures D, E, F, G, H, I, J, and N. C.1.1 Energy Efficiency Business Incentives (SDG&E) SDG&E's Energy Efficiency Business Incentives provides cash incentives for retrofitting existing or installing new high-efficiency equipment to save energy. The incentive amount is driven by the amount of energy the project saves with a limit of 50 percent of the project cost, or 100 percent of the allowable incentive amount. C.1.2 Energy Efficiency Business Rebates (SDG&E) SDG&E's Energy Efficiency Business Rebates program helps eligible customers offset the cost of installing energy-efficient lighting, refrigeration, food service, natural gas and other high efficiency equipment. C.1.3 Business Energy Solutions (SDG&E) SDG&E's Business Energy Solutions offers small- and mid-sized business customers (non- residential) a no-cost energy assessment and building upgrades, including lighting, HVAC, refrigeration, and water heating. Eligible customers can also receive an interest-free loan for discounted products. Qualifying businesses include commercial rate customers with monthly electrical demand under 200kW. C.1.4 Savings By Design (SDG&E) SDG&E's Savings by Design program offers cash incentives and technical assistance to help you maximize energy performance in your commercial new construction projects, including up to $150,000 in building owner incentives, three 10% bonus incentive opportunities in addition to the building owner incentive, up to $50,000 in design team incentives, up to $5,000 for a design team stipend to encourage early collaboration by all participants, and design assistance services and resources matched to the project needs. C.1.5 RCx Retrocommissioning Program (Clear Result) The San Diego Retrocommissioning Program (RCx Program) can help you improve the performance of a building's systems, achieve energy savings, and improve occupant comfort. Under the RCx Program, qualified buildings receive a no-cost, no-obligation facility screening to confirm eligibility, a free custom engineering study, and financial incentives for eligible retrocommissioning measures. 6 For information on all commercial energy efficiency programs, see the SDG&E website at http.//www.sdge.com/rebates-finder/business Energy Policy Initiatives Center C-1 C.1.6 Premium Efficiency Cooling Program Conservation Services Group) The Premium Efficiency Cooling Program is open to eligible commercial customers in the San Diego Gas & Electric service area. The program provides incentives to support the maintenance and retirement of air conditioning equipment and the purchase of new premium-efficiency packaged rooftop equipment. C.1.7 California Solar Initiative Thermal Program ((TUC) The California Solar offers rebates for eligible residential and commercial solar water heating systems. The program is administered by the Center for Sustainable Energy in the San Diego Region. C.2. Distributed and Renewable Energy The following distributed generation and renewable energy incentive programs could provide funds to offset costs related to implementing Measures A, B, C, M, and N. C.2.1 California Solar Initiative — Solar Electric (CPUC) The California Solar Initiative (CSI) is the solar rebate program in California for customers of the investor-owned utilities: Pacific Gas and Electric, Southern California Edison and San Diego Gas & Electric. Through CSI, the California Public Utilities Commission is providing $2.1 billion to businesses, nonprofit organizations, public agencies and homeowners to help lower their energy costs, reduce their reliance on fossil fuels and create a sustainable energy future through the use of solar technologies. The program is administered by the Center for Sustainable Energy in the San Diego region. C.2.2 Self-Generation Incentive Program (CPLTC) The CPUC's Self-Generation Incentive Program (SGIP) provides incentives to support existing, new, and emerging distributed energy resources. The SGIP provides rebates for qualifying distributed energy systems installed on the customer's side of the utility meter. Qualifying technologies include wind turbines, waste heat to power technologies, pressure reduction turbines, internal combustion engines, microturbines, gas turbines, fuel cells, and advanced energy storage systems. The program is administered by the Center for Sustainable Energy in the San Diego region. C.2.3 New Solar HOmes Partnership (CEC) The California Energy Commission's New Solar Homes Partnership (NSHP) is part of the California Solar Initiative. The NSHP provides financial incentives and other support to home builders, encouraging the construction of new, energy efficient solar homes. C.3. Energy Project Financing The following energy financing programs could provide funds to offset costs related to implementing Measures D, E, F, G, H, I, J, and N. C.3.1 On-bill Financing Program (SDG&E) On-Bill Financing (OBE) allows qualified commercial and government-funded customers to pay for energy-efficient business improvements through their SDG&E bill. To be eligible customers must receive a rebate or incentive through an SDG&E energy efficiency program, have had an active Energy Policy Initiatives Center C-2 SDG&E account for the past two years for the same business, and the account must be in good standing Please contact SDG&E C.3.2 Financing for Energy Efficiency and Energy Generation Projects (CFC) The California Energy Commission offers 1% loans to cities, counties, and special districts for projects with proven energy and/or demand cost savings Examples of qualified projects include lighting systems; heating, ventilation and air conditioning equipment; streetlights and LED traffic signals; energy management systems and equipment controls, pumps and motors; building insulation; energy generation including renewable energy and combined heat and power projects; water and waste water treatment equipment; and load shifting projects, such as thermal energy storage. C.4. Alternative Transportation Fuels The following alternative transportation fuels programs could provide funds to offset costs related to implementing Measure L. C.4.1 Clean Vehicle Rebate Project (CARB) The Air Resources Board (ARE) Clean Vehicle Rebate Project (CVRP) promotes the purchase of battery electric, plug-in hybrid electric, and fuel cell vehicles. Rebates of up to $5,000 per light-duty vehicle are available for individuals, nonprofits, government entities, and business owners who purchase or lease an eligible vehicle. C.4.2 Alternative and Renewable Fuel and Vehicle Technology Program (CEC) The California Energy Commission's Alternative and Renewable Fuel and Vehicle Technology Program's investments strategically target gaps in the energy innovation pipeline for the development and deployment of alternative and renewable fuels and advanced transportation technologies to help meet the state's goals for reducing greenhouse gas emissions and petroleum dependence in the transportation sector. C.5. Smart Growth and Alternative Transportation Modes The following smart growth and alternative transportation modes programs could provide funds to offset costs related to implementing Measure K. C.5.1 Smart Growth Incentive Program (SAND AG) The Smart Growth Incentive Program provides funding for transportation-related infrastructure improvements and planning efforts that support smart growth development in Smart Growth Opportunity Areas as shown on the Smart Growth Concept Map. The goal is to fund comprehensive public infrastructure projects and planning activities that will facilitate compact, mixed-use development focused around public transit, and that will increase housing and transportation choices. C.5.2 Active Transportation Grant Program (S AND AG) The goal of the Active Transportation Grant Program is to encourage local jurisdictions to plan and build facilities that promote multiple travel choices for residents and connectivity to transit, schools, retail centers, parks, work, and other community gathering places. The grant program also Energy Policy Initiatives Center C-3 encourages local jurisdictions to provide bicycle parking, education, encouragement, and awareness programs that support pedestrian and bicycle infrastructure. C.5.3 iCommute (SANDAG) iCommute is the Transportation Demand Management (TDM) program for the San Diego region. It encourages use of transportation alternatives that can help reduce traffic congestion and greenhouse gas emissions. The program offers specific assistance to commuters, employers, and local governments. C.5.4 Sustainable Transportation Planning Grant Program (Caltrans) The Sustainable Transportation Planning Grant Program was created to support the California Department of Transportation's (Caltrans) current Mission: Provide a safe, sustainable, integrated and efficient transportation system to enhance California's economy and livability. The program's overarching objectives were also identified to ensure consideration of these major efforts in transportation planning, including: Sustainability, Preservation, Mobility, Safety, Innovation, Economy, Health, and Equity. C.5.5 Active Transportation Program (Caltrans) The Active Transportation Program (ATP) was created to encourage increased use of active modes of transportation, such as biking and walking. It consolidates various transportation programs, including the federal Transportation Alternatives Program, state Bicycle Transportation Account, and federal and state Safe Routes to School programs into a single program to, among other things, increase the proportion of biking and walking trips; increase safety for non-motorized users; increase mobility for non-motorized users; and advance the efforts of regional agencies to achieve greenhouse gas reduction goals. Program funding is segregated into three components and is distributed as follows: 50% to the state for a statewide competitive program; 10% to small urban and rural regions with populations of 200,000 or less for the small urban and rural area competitive program; and 40% to Metropolitan Planning Organizations (MPO) in urban areas with populations greater than 200,000 for the large urbanized area competitive program. C.6. Land use, Housing, Community Development The following smart growth and alternative transportation modes programs could provide funds to offset costs related to implementing Measure K. C.6.1 Sustainable Communities Planning Grant and Incentives Program (Strategic Growth Council) The principal goal of this program is to fund the development and implementation of plans that lead to significant reductions in greenhouse gas emissions in a manner consistent with the State Planning Priorities, AB 32: The California Global Warming Solutions Act of 2006, and the current Environmental Goals and Policy Report. This grant program is meant to foster the development of sustainable communities throughout California. It is designed to help local governments meet the challenges of adopting land use plans and integrating strategies to transform communities and create long-term prosperity. Sustainable communities shall promote equity, strengthen the economy, protect the environment, and promote healthy, safe communities. C.6.2 Affordable Housing and Sustainable Communities Program (Strategic Growth Council) The Strategic Growth Council's Affordable Housing and Sustainable Communities Program funds land-use, housing, transportation, and land preservation projects to support infill and compact Energy Policy Initiatives Center C-4 development that reduces greenhouse gas emissions. These projects facilitate emission reductions by improving mobility options and increasing infill development, which decrease vehicle miles traveled and associated greenhouse gas and other emissions, and by reducing land conversion, which would result in emissions of greenhouse gases. C.7. Energy Research and Development Significant energy research and development funds are available in California and potentially could be used in support of nearly all CAP Measures. C.7.1 Energy Policy Investment Charge (CEC) The Electric Program Investment Charge (EPIC) Program was created by the California Public Utilities Commission (CPUC) in December 2011 to support investments in clean energy technologies that provide benefits to the electricity ratepayers of Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southern California Edison Company (SCE). The EPIC program funds clean energy research, demonstration and deployment projects that support California's energy policy goals and promote greater electricity reliability, lower costs, and increased safety. The CPUC designated the Energy Commission as one of four administrators of the program. C.8. Other The following resources are relevant to all CAP Measures. C.8.1 Cap-and-Trade Auction Proceeds (CARB) Part of the State's comprehensive approach includes the Cap-and-Trade Program, a market-based regulation that sets a limit on the emissions from sources responsible for 85 percent of California's greenhouse gas emissions. As part of this program, CARB conducts quarterly auctions where State- owned allowances, as well as allowances consigned by electrical distribution utilities, can be purchased. The funds received for the sale of California State-owned allowances are deposited into the Greenhouse Gas Reduction Fund (GGRF), and are available for appropriation. The Legislature has passed a suite of bills that define requirements for the use of the GGRF. All GGRF investments must reduce greenhouse gas emissions. CARB has developed a concept paper outlining a framework for the Second Investment Plan.' CARB expects the Second Investment Plan to be released for public comment in Fall 2015 and adopted by the Board by the end of 2015. The program appropriated $70 million in 2013-14 and $832 million in 2014-15. C.8.2 Funding Opportunities Through California Resource Agency The California Resource Agency, which oversees many different relevant agencies and commissions provided a comprehensive listing of all funding opportunities.' 7 Available for download at the California Air Resources Board website at http.//www.arb.ca.gov/cc/capandtrade/auctionproceeds/draft-second-investment-plan-concept-paper-7-28-15.pdf 8 Available for download at the California Resource Agency at http://resources.ca.gov/docs/bonds and grants/Agency Grants and Loans April 2015.pdf Energy Policy Initiatives Center C-5