REPORT TO COUNCIL
SUBJECT
Title
Action on the Demonstration of Energy & Efficiency Developments (DEED) Grant Agreement with American Public Power Association and related Budget Amendment
Report
BACKGROUND
The American Public Power Association’s Demonstration of Energy & Efficiency Developments (DEED) program provides funding for research grants for member utilities, student scholarships, and internships. Members of the program pay annual dues, which are used to fund the grants and scholarships. Utilities may apply for funding up to $125,000 per project, with matching funds provided by the utility or other project partners. Grant-funded projects can be research and development, pilot projects, early commercialization, or new technology demonstrations, and are expected to have applicability to the broader public power community. Deliverables developed through the project are made available to all DEED member utilities. As a member of the DEED program, Silicon Valley Power (SVP) is eligible to apply for grant funding.
In order to expand its energy efficiency programs, SVP periodically participates in research and development efforts to investigate new technologies or studies ways to improve the energy efficiency achieved through technology solutions. SVP partners in larger efforts undertaken regionally or nationally to leverage the expertise and investment by other industry partners. SVP also leverages funding by applying for grant funding, where applicable.
SVP has been investigating expansion of efficient counter-top plug load food service equipment into its energy efficiency program portfolio, as this is an area not yet covered under utility energy efficiency programs. New efficient equipment is becoming available and behavioral changes made by food service staff can provide reductions in energy consumption through educational awareness programs, but there are no studies that have demonstrated the energy efficiency potential for these measures in real world settings yet. The California Energy Commission issued a grant to PG&E and Frontier Energy, Inc. to perform a study at ten customer sites, but this study is not large enough to cover all potential energy efficient plug load measures. Data is needed from more sites to provide a more robust set of energy efficient measures. Prior to developing a program for efficient plug load food service equipment, SVP is interested in determining the energy savings potential from each efficiency measure. To that end, SVP has entered into an Agreement with Frontier Energy, Inc. on September 11 to perform a study on the energy savings potential in food service plug load equipment as discussed in more detail below.
DISCUSSION
This grant funding will be used to measure energy consumption in existing food service plug load equipment, replace the equipment with more efficient models or enact control strategies, and measure the energy consumption of the new models or controls to determine the energy efficiency potential for food service plug load equipment. Frontier Energy will perform this work and it will build on the work they are currently performing on behalf of PG&E through the California Energy Commission Grant.
The results of both efforts will be combined into a single technical report provided to the DEED program as a deliverable for this grant. Results from this work will guide the design of a potential food service plug load rebate program for Silicon Valley Power’s commercial customers. SVP will also be required to provide quarterly reporting on the progress of the project to the DEED program, provide a final report and abstract, and provide shared funds in the amount of $67,000 through its Public Benefits Program budget.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The total amount of the Demonstration of Energy & Efficiency Developments (DEED) Grant Agreement Silicon Valley Power CG-2168 Energy Savings Potential in Commercial Food Service Plug Load Equipment Grant from the American Public Power Association will not exceed $65,000.
SVP must provide shared funds in the amount of $67,000 from the existing Public Benefits Program budget, and the DEED Grant will not exceed the pro-rata share of the Frontier Energy study expense up to a value of $132,000.
The DEED Grant funds will offset money that has already been committed toward the Agreement between Frontier Energy, Inc. and City of Santa Clara which the City Manager approved on September 11, 2018. The DEED process requires SVP to approve the research agreement prior to being awarded the grant.
Budget Amendment
FY 2018/19
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Electric Operating Grant Trust Fund |
|
|
|
|
Funding Source Category |
|
|
|
|
Grant Funding - 1312 |
$0 |
$65,000 |
$65,000 |
|
|
|
|
|
|
Funding Use Category |
|
|
|
|
Materials/Services/Supplies - 1312 |
$11,349,518 |
$65,000 |
$11,414,518 |
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve Grant Agreement with American Public Power Association and Accept the Demonstration of Energy & Efficiency Developments (DEED) Grant in the amount of $65,000; and
2. Approve a budget amendment in the amount of $65,000 for Electric Department Public Benefits Operating Budget Contractual Services.
Staff
Reviewed by: John C. Roukema, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. APPA DEED Grant