Loading...
HomeMy WebLinkAbout1991-45 BPA Residential Conservation Agreements RESOLUTION NO. 91- 1./ S- A RESOLUTION AUTHORIZING THE MAYOR AND CITY RECORDER TO EXECUTE AND SIGN THE RESIDENTIAL CONSERVATION AGREEMENT, EXHIBIT A (GENERAL CONSERVATION CONTRACT PROVISIONS), EXHIBIT C (THE LONG TERM SUPER GOOD CENTS PROGRAM), EXHIBIT D THE MANUFACTURED HOME PROGRAM), EXHIBIT F THE OREGON STATE CODE ASSISTANCE OPTION) AND EXHIBIT H (THE APPLIANCE EFFICIENCY PROGRAM) AS OFFEHED TO THE CITY OF ASHLAND BY THE BONNEVILLE POWER ADMINISTRATION WHEREAS, the City of Ashland desires to help in the regional effort to acquire energy conservation; and WHEREAS, the Bonneville Power Administration has offered the City of Ashland conservation programs which we can offer to our citizens; and WHEREAS, the City of Ashland finds that operating these conservation programs will benefit our citizens; NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council that the City of Ashland does hereby enter into agreements with the Bonneville Power Administration to operate these conservation programs and authorizes the Mayor and City Recorder to sign and execute such agreements. The foregoing Resolution was READ and DULY ADOPTED at a regular meeting of the City Council of the City of Ashland on the . 3/u~ day of :])~ (!~? dJ~ .I!.--,:;-'(.___ 1991. C4~L) f;;:;;"-/i-if;'~-J Nan E. Franklin City Recorder Signed and approved this L//i. day of / . - /? \ . ( C'..<;;;'..-;I-.7:.' CO '-..-<c. ~ , '991. ~?:~ /~.;:--~. )1-/'7~G-;;:-<c;<-- Catherine M. Golden Mayor mo: Jff rom: ~ubjett: ~emornndum November 25, 1991 Mayor and City Council Dick Wanderscheid @ SPA RESIDENTIAL CONSERVATION AGREEMENT Background The Sate of Oregon's new residential energy code will take effect on January 1, 1992. This code is the thermal equivalent of the existin!~ Super Good Cents program, so all homes built after January will be built to the current Super Good Cents standards. Because the new Oregon Code is fuel blend, all homes, regardless of heating system type, will be built to these same energy efficiency levels. Meanwhile, the Northwest Power Planning Council, in its recently adopted 1991 NW Power Plan, identified energy conservation measures for new homes beyond this new code which are cost effective for the region to acquire. With this in mind, the Bonneville Power Administration has been working with the Council Staff and the region's utilities over the last six months to develop a new Super Good Cents program designed to acquire these additional conservation savings in the region's new housing. This process has culminated in the development of a new long term Super Good Cents program which has now been formally offered to BPA's utility customers. The Residential Conservation Agreement The vehicle that BPA is utilizing to offer this program is the Residential Conservation Agreement (RCA). This contract includes revised General Conservation Contract Provisions and a number of exhibits which contain separate programs which are set to begin on January 1, 1992. The RCA is designed so that utilities sign the umbrella contract and then allows them the option of selecting program exhibits they choose to offer. The initial exhibits offered to Oregon utilities under this contract are the General Conservation Contract Provisions (Exhibit A), the Lonq Term Super Good Cents The initial exhibits offered to Oregon utilities under this contract ane the General Conservation Contract Provisions (Exhibit A), the Lon!J Term Super Good Cents Program (Exhibit C), the Manufactured Home Program (Exhibit D), the Oregon State Code Assistance Option (Exhibit F), and the Appliance Efficiency Program (Exhibit H). Measure incentives, administrative reimbursement and promotional funds are offered as a part of each program exhibit. The program details are as follows: Long Term Super Good Cents Program (Exhibit C) This program is designed to acquire energy conservation in new residential buildings. The program becomes effective on January 1, 1992 and shall remain in effect until June 30, 2001, unless terminated earlier as provided in the agreement. The new base case prescriptive path requirements for single family homes in Climate Zone 1 under this program are: Ceilings - Attics Vaults R-49 Advanced Framing R-38 Walls - Above Grade Below Grade Interior R-26 Advanced Framing R-21 Floors - Over Crawls paces Slab on Grade Perimeter R-30 R-15 Glazing - Maximum Tested U-Value Maximum % of Floor Area U = 0.35 15% Unlike the existing Super Good Cents program, efficient heating systems (i.e. heat pumps) will not be allowed to be used to reduce the above minimum envelope insulation requirements. These requirements are substantially beyond the new Oregon code and will probably be difficult to sell to builders in the early stages of the program. Since many of the measures exceed the cost effectiveness levels for the homeowner, BPA is committed to purchase these savings in t'he form of payments to the builder or homeowner. This is because while the measures are not cost effective to the homeowner, they are cost effective to the region's electric system because they cost less than other resources available to the region. The proposed payment schedule recognizes that it will be difficult to move builders all the way to the standards and therefore allows payments for moving part of the way to the ultimate standards. These partial payments (Tier 2 and 3) are scheduled to be phased out in two years (i.e. January 1, 1994). The payment schedule for this new program is as follows: Tier 3 homes (50% of the Standard) = $ 500/home Tier 2 homes (75% of the Standard) = $1,000/home Tier 1 homes (full compliance) = $2,000/home In addition to the above incentives, these additional payments are available: Advanced Infiltration Control with Heat Recovery Efficient Showerheads (less 2.5 gpm) Efficient Water Heaters (Energy factor greater than .95) Efficient Refrigerator (offered in 1992 only) Efficient Interior Lighting Efficient Exterior Lighting Exhaust Air Heat Pump Water Heater Efficient Heat Pumps 7.2 Heating Season Performance Factor (HSPFI 7.4 HSPF 8.5 HSPF = $ 750jhome = $ 40 = $ 60 jheater = $ 60jRefrigerator = $ 50 jhome = $ 25jfixture = $1,200jhome Tier 1 Homes $480 $500 $800 To give an idea of the kind of incentive available for homes, a full Tier 1 certified home installing all of the eligible measures would be able to receive the following incentive: Tier 1 Incentive Efficient Showerheads Efficient Water Heater Exhaust Air Heat Pump Water Heater with Advanced Air Leakage Efficient Refrigerator Efficient Interior Lighting 3 Efficient Exterior Light Fixtures 8.5 HSPF Heat Pump TOTAL $2,000 40 60 1,700 60 50 75 800 $4,785 This example illustrates the maximum incentive that would be available under the program. The City would also receive administrative, sales support and advertising payments to operate this program. Based on 1991 housing starts, the following amounts would be available to the City under this exhibit: Sales Support (Base).................................................. $15,OOOjyr + $100/Building Certified Advertising ($1.00 per residential customer).................$6,200/yr Manufactured Home Program (Exhibit D) will be offered in February. 1'992 While the City has not had any new manufactured housing sited in Ashland in recent years, the changes in the Land Use Code could result in more siting in the years to come. This program would also run from January 1, 1992 to June 30, 2001. Incentive payment levels for 1992 would be $2,000 per unit. While administrative and advertising funds are available under this program, and since we have had no activity in this area, no funds would be available. However, if activity increases, administrative and advertising funds would be available to operate this program. Since we will probably see more manufactured housing being sited in Ashland and because the outcome of the direct payment to manufactures is currently unknown, Staff recommends we execute this agreement in February in case it becomes necessary in the future. Oregon State Code Assistance Option (Exhibit F) The purpose of this program is to reimburse utilities to provide assistance to code agencies to help implement the new Oregon State Energy Code. This option becomes effective on January 1, 1992 and will be in effect until December 31, 1993. Since we already do this under the existing Super Good Cents program, it won't add much of a workload to the Staff. Based on 1991 housing starts, we would receive $7,500 per year for this option. Appliance Efficiency Program (Exhibit H) This program is designed to acquire energy savings by installing energy efficient appliances. It would become effective on January 1, 1992 and end on June 30, 2001 unless terminated earlier. Two measures would be offered initially under this program - enel-gy efficient showerheads and energy efficient electric water heaters. The program measures would be available to any existing customer (residential or commercial) that has an existing electric water heater. Any customer who replaces the electric water heater with an energy efficient one (.95 energy factor) would be eligible for a $60 cash rebate from BPA. The City would receive an additional $5 administrative payment for processing this rebate. Showerheads will be provided free by BPA or the City can purchase them and be reimbursed for actual costs up to $10 for each showerhead. Administrative payments for actual installation of these devices in customers' homes will be $37 for each single family residence and $18 for each multi-family residential unit. In addition, the City would receive a one-time administrative payment of $4,000 and an advertising budget of at least $3,100 per year. The water saving benefits of this showerhead program are an additional water resource which will benefit the City's water utility. Conclusion The 1991 Power Plan calls for the region to acquire 1500 MW's of conservation in the next decade. BPA's share is nearly 700 MW's. The RCA is the first action by BPA to move into this aggressive conservation acquisition mode. The City's Conservation Staff is eagerly awaiting our chance to help in this regional effort. Therefore, we would like Council's approval to direct the Mayor and City Recorder to execute the RCA and appropriate exhibits. The attached resolution would enable them to do this. Adoption now will have these programs all operational by January 1, and we can convey all the necessary information about the changes to the building community in December. Feel free to give me a call at 488-5306 if you have questions or need further information prior to the meeting. Contract No. DE-MS79-91BP93533 Procurement No. 76414 RESIDENTIAL CONSERVATION AGREEMENT executed by the UNITED STATES OF AMERICA DEPARTMENT OF ENERGY acting by and through the BONNEVILLE POWER ADMINISTRATION and CITY OF ASHLAND Index to Sections - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Section Page 1. Term of Agreement ................................................ 2 2. Program Overvi ew ................................................. 2 3. Def in i t i on s ...................................................... 2 4. Ex hi bit s ......................................................... 3 5. Entire Agreement ................................................. 4 6. Interpretation................................................... 4 7. Termination ...................................................... 4 8. Amendment of Agreement ........................................... 4 9. Customer Duties .................................................. 5 10. Budget Provi sions ................................................ 5 11. Qual ity Assurance................................................ 5 12. Training......................................................... 6 13 Program Records .................................................. 6 14. Program Reports .................................................. 6 15. Payment............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 16. Notices and Other Communications .... .......... ..... ..... ......... 7 17. Dispute Resolution and Arbitration.. ..... ............... ......... 7 18. Severabi 1 i ty ..................................................... 8 19. Signature Clause................................................. 8 Exhibit A (General Conservation Contract Provisions) ................. 3 Exhibit B (Super Good Cents Program) . ... ........................ ..... 3 Exhibit C (Long-Term Super Good Cents Program) ....................... 3 Exhibit D (Manufactured Homes Program) ... ............................ 3 Exhibit E (Washington State Options) ...... ........................... 3 Exhibit F (Oregon State Option) ...................................... 3 Sectlon Page Exhlblt G (Appllance Efficiency) ..................................... 3 Exhi bi t X (References) ............................................... 3 - - - - - - - - - - - - - - - - - - - - - - - - Thls AGREEMENT, executed , 19 , by the UNITED STATES OF AMERICA, Department of Energy, acting by and through the BONNEVILLE POWER ADMINISTRATION (Bonneville), and CITY OF ASHLAND (Customer), a munlcipal corporation organlzed and existing under the laws of the State of Oregon. WIT N E SSE T H : WHEREAS Bonneville is authorized by the Paclflc Northwest Power Planning and Conservation Act (Northwest Power Act) to acquire electric power resources, both conservatlon and generation, as required to meet the needs of lts customers; and WHEREAS Bonneville is required by the Northwest Power Act to acquire actual or planned load reduction through cost-effective conservation; and WHEREAS the Paciflc Northwest Power Plan recommends that Bonneville and lts customers support conservation with promotion, financial incentives, and support actlvities; and WHEREAS Bonneville is directed by the Northwest Power Act to make maximum practicable use of its customers and local entities in admlnisterlng and carrying out such arrangements; NOW, THEREFORE, the parties hereto mutually agree as follows: 1. Term of Agreement. This Agreement becomes effective on the date the Customer signs (Effective Date), and shall contlnue in effect through June 30, 2001, unless terminated earlier as provided herein. All obligations arising from this Agreement shall be preserved until satisfied. 2. Program Overview. The purpose of this Agreement is to acquire energy conservation and enhance energy efficient building practices to manage the Bonneville load growth. Bonneville shall provlde payment to its Customer to promote and admlnister the Programs under this Agreement. New innovatlve products introduced, evaluated, and proven cost-effective may be offered for implementation under the Programs in this Agreement. 3. Definitlons. All capitallzed terms are as defined in Exhibit A, except that the following terms shall have the followlng meaning: (a) "Adcents" means a committee composed of representatives from utilities which gives guidance to the program manager(s) as to advertising strategies. 2 (b) "Agreement" means an acqui si tion contract that encompasses. one or more Bonneville-designed Conservation Program(s). (c) "Budget Year" means the 12-month period commencing on October 1 and ending the following September 30. (d) "Building" means a structure containing one or more Residences. (e) "Customer" means the signatory to thi s Agreement other tha.n Bonneville. For the purposes of this Agreement, Customer means Contractor as defined in Exhibit A. (f) "Manufactured Home" means a Building manufactured to U.S. Dept. Housing and Urban Development standards, in one or more sections, on a steel chassis. (g) "Model Conservation Standards (MCS)" means energy-efficient Building standards developed by the Northwest Power Planning Council for new electrically heated residential Buildings. (h) "Modular Home" means a Building required to be manufactured to Uniform Building Code standards in one or more sections, and permanently sited. (i) "Multifamily" in new construction means Building(s) having more than one Residence (i .e., duplexes, triplexes and apartment buildings), except as noted in Exhibit E. (j) "Performance Period" means the defined effective period for each of the Programs under this Agreement. (k) "Residence" means a unit with provisions for sleeping, eating, cooking, and sanitation. (1) "Shelter Industry" means associates of the construction trade, which includes, but is not limited to, builders, Realtors, appraisers, lenders, subcontractors, suppliers, manufacturers, and dealers. (m) "Single Family" means one building containing only one residence, except as noted in Exhibit E. (n) "Super Group" means an advisory group whose primary responsibility is that of reviewing program operations and making recommendations to the program managers. (0) "WATTSUN" means a computer program designed to calculate the energy performance of a Building. 4. Exhibits. Exhibit A (General Conservation Contract Provisions, dated 11/1/91), Exhibit B (Super Good Cents Program), Exhibit C (Long-Term Super Good Cents Program), Exhibit D (Manufactured Homes Program), Exhibit E 3 (Washington State Options), Exhibit F (Oregon State Option), Exhibit G (Appliance Efficiency), and Exhibit X (References) are by this reference made a part of this Agreement. As additional Exhibits are developed they will be made part of this Agreement via written notice from the Contracting Officer. 5. Entire Agreement. This Agreement sets forth the entire agreement of the parties and supersedes any and all prior agreements with respect to the subject matter of this Agreement. The rights and obligations of the parties hereunder shall be subject to and governed by this Agreement. The headings used herein are for convenient reference only and shall not affect the interpretation of this Agreement. 6. Interpretation. (a) The provisions in Exhibit A are incorporated by reference into this Agreement. In the event of a conflict, Exhibit A is subordinate to all other parts of this Agreement. (b) Except as provided in section 18 of Exhibit A, nothing contained in this Agreement shall, in any manner, be construed to abridge, limit, or deprive any party hereto of any remedy, either at law or in equity, for the breach of any of the provisions of this Agreement. (c) The provisions in Exhibit X are incorporated by reference into this Agreement. 7. Termination. In addition to the termination provisions of Exhibit A, the following provisions apply under this Agreement: (a) The Customer may, for its convenience, terminate this Agreement by giving Bonneville 30 days' written notice of such termination. In the event of such notice, the Customer shall cease all new activities related to the programs in this Agreement. All obligations prior to such notice shall be satisfied. (b) Bonneville may, for its convenience, terminate this Agreement pursuant to section 8(a) of Exhibit A. 8. Amendment of Agreement. (a) Except as provided in section 8(b) below and sections 27(b)(7) and 27(b)(8) of Exhibit A, the provisions of this Agreement may be amended only by agreement of the parties. (b) Documents incorporated in Exhibit X may be changed only to incorporate new or updated information which does not affect the requirements of this Agreement. Any such changes shall be issued by Bonneville after reasonable consultation with the Customer and shall be incorporated in this Agreement. 4 9. Customer Duties. (a) The Customer's duties shall be to comply with the objectives and terms of this Agreement by operating the Programs according to the procedures identified in the Exhibits. (b) The Customer shall notify the COTR of the Programs it intends to operate under this Agreement. (See sample selection sheet under Exhibit X, Reference 18.) Such notification shall be submitted with the appropriate budget forms identified in Exhibit X, Reference 12. (c) Changes to Exhibit selection shall be submitted in writing to the COTR for approval. (d) The Customer shall designate in writing who has authority to sign budget requests and financial reports for each Exhibit. (e) The Customer shall comply with (1) the terms and conditions of any permit and/or license for the Program(s) issued by any Federal, State or local governmental agency or body having jurisdiction; and (2) any Federal, State or local regulation applicable to the Program(s). All materials or equipment removed pursuant to the Program(s) shall be disposed of in accordance with applicable Federal, State and local regulations. (f) The Customer shall comply with the residential sector environmental requirements established for Bonneville programs. 10. Budget Provisions. (a) For each Budget Year following the initial Budget Year, Bonneville will notify the Customer when annual budget requests are due. Upon receipt of this notification, the Customer shall prepare and submit its annual budget request to the COTR in a format consistent with the sample budget forms in Exhibit X, Reference 12. (b) Bonneville will review the Customer's budget requests upon receipt and notify the Customer in writing of the amount Bonneville approves. (c) At any time during a Budget Year, the Customer or Bonneville may request to increase or decrease the Customer's approved budget for such Budget Year. 11. Quality Assurance. (a) Quality Assurance of the activities conducted under this Agreement is essential to the long-term success of the programs. Periodic on-site reviews may be conducted by Bonneville or its designee to assess Program implementation and make recommendations for improvements. Such reviews may include a review in the office of recordkeeping and implementation procedures, as well as field inspections of work completed under this Agreement. 5 (b) If the Customer is judged to not be in compliance with the requirements of the Agreement or one of its Exhibits, Bonneville and the Customer may jointly develop a quality improvement plan designed to improve the quality of the work performed. Such a plan may include taking remedial steps to correct the identified deficiencies. (c) If the Customer is found to be consistently out of compliance for a 15-month period, Bonneville may, at its option, seek repayment for work performed under the Exhibit that is not in compliance with the requirements of the Exhibit, disapprove invoices and/or suspend all or a part of the Agreement as provided for under section 7(a) of Exhibit A. 12. Training. Training will be offered on an as-needed basis. All Customers may attend any scheduled Bonneville-approved training. Training will be offered at Customer meetings and scheduled sessions, depending on the demand and need. 13. Program Records. The Customer shall maintain records in accordance with the provlslons contained in Item 2 of the appropriate Exhibits to this Agreement. 14. Program Reports. (a) Reports. The Customer shall submit to Bonneville reports in accordance with the provisions contained in Item 3 of the appropriate Exhibits to this Agreement. The same reporting schedule shall be used for all Exhibits elected under this Agreement. (b) Close Out. The final report for each Budget Year shall be submitted in accordance with the Fiscal Yearend close-out procedures provided by Bonneville. 15. Payment. . Payments are final upon certification of a proper Invoice by the COTR. Under cost-reImbursement contracts final payment Is certified at the time that a reimbursement is requested. Under advance type contracts, which include letter of credit method, final payment is certified at the time that an invoice is submitted to support the expenditures of the previous advance payment requested. Adjustments for prior bIlling errors can be made on subsequent payments by the Customer or Bonneville up to the earlier of 3 years from the end of a budget period or upon an a.udit. After this period, payments are final except for fraud. (a) Types of Payment. The methods of payment available to the Customer are limited to the methods set forth in Exhibit X, Reference 14. Payments shall be made in accordance with the payment method selected in writing by the Customer and approved by Bonneville. The Customer may request a change in the payment method by providing written notice to 6 Bonneville. Bonneville shall notify the Customer in writing whether such request is approved. (b) Single Audit. If the Customer is required to have a Single Audit as identified in the Audit provisions in Exhibit A, Bonneville will, with appropriate prior approval, reimburse the Customer for the additional cost involved. (Approval for reimbursement shall be obtained prior to the start of the Single Audit by contacting the COTR as applicable.) (c) Current Payment Amounts. Bonneville shall pay the Customer the amount determined in accordance with the appropriate Exhibit(s). (d) Duplicate Payments. Bonneville will not pay for anything under this Agreement which has been or will be paid for under any other Bonneville agreement or financial assistance instrument. 16. Notices and Other Communications. Written communication and financial reports between the parties shall be delivered in person or mailed to the address and to the attention of the person specified below: If to Bonneville: Bonneville Power Administration Lower Columbia Area P.O. Box 3621 Portland, OR 97208-0999 Attn: Marilyn Holland - LRB Contracting Officer's Technical Representative (503) 230-4213 If to the Customer: City of Ashland City Hall 20 E. Main Street Ashland, OR 97520 Attn: Dick Wanderscheid (503) 488-5306 Either party may change or supplement such address or specified person by giving the other party written notice of such change. 17. Dispute Resolution and Arbitration. Disputes regarding this Agreement shall be resolved under the provisions contained in section 18 of Exhibit A. 7 18. Severability. If any provision of this Agreement is finally adjudicated by a court of competent jurisdiction to be invalid or unenforceable, it is the parties' intent that the remainder of this Agreement, to the extent practicable, continue in full force and effect as though such provision or any part thereof so adjudicated had not been included therein. 19. Signature Clause. Each party hereto represents that it has the authority to execute this Agreement and that it has been duly authorized to enter into this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement. UNITED STATES OF AMERICA Department of Energy Bonnevi 11 e prer Ad~ni stration By ~ ,J. J,-1~h~ Assistant Administrato for Energy Resources NOV % 0 1991 Date CITY OF ASHLAND By c;:j ,(/I._'C~ ') J~,< /-i'c C-____ Titl e 77<7 ?'.l-}.~ . / -- I /:;) -3- J. Date (VS6-PMCE-+1025/+1026) 8