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Home My WebLink About2. SENATE BILL 5GITY OF PORT ARTHUR, TEXAS ENT PUBLIG WORK~ DEPART~ c~ '" ~ O~F/c~ MEMORANDUM: TO: Steve Fitzgibbons, City Manager FROM: Leslie E. McMahen, P.E., Director of Public Works DATE: April 23, 2002 SUBJECT: Senate Bill S Report Attached is some information regarding Senate Bill '5 which would "impose" a 5% reduction per year in electrical consumption by entities in Texas for a period of five (5} years. Failure for Texas to comply voluntarily with the program could see federal highway funds reduced in 2007. This is another program that will, require additional staff to handle, as will the storm water program. SOUTH EAST TEXAS REGTONAL PLANNI'NG COMM"SSi'ON (SETRPC) STATE ENERGY CONSERVATI'ON OFF'iCE (SECO) MI'NUTES OF THE WORKSHOP ON SENATE BI'LL S MARCH 13~ 2002 WELCOME AND ZNTRODUCTi'ONF; Bob Dickinson, Director of Transportation and Environmental Resources, SETRPC, welcomed all present and introduced Dub Taylor of the State Energy Conservation Office. GUESTS PRESENT Dub Taylor, Director, State Energy Conservation Office Taylor Shelton, Director of Public Works, City of Port Neches 3erry .1ones, Director of Public Works, City of Bridge City Mark Stephenson, General Manager, Orange County Drainage Leslie McMahen, Director of Public Works, City of Port Arthur Andre' Wimer, City Manager, City of Nederland Dave Brinson, City Manager, City of Groves .limmie Lewis, Planning Director, City of Orange George Newsome, Public Works Director, City of Groves Cecil Peltier, Assistant General Manager, .lefferson County Drainage District 6 Waymon Hallmark, County Commissioner, .lefferson County 3ohn Morgan, Building Services Superintendent, City of Beaumont Kirby Richard, Central Services Director, City of Beaumont Steve Hamilton, Director of Public Works, City of Nederland Mark Wimberley, Operations and Maintenance Director, Orange County .lose Pastrana, County Engineer, .lefferson County Melissa Gwynes, Assistant County Engineer, Jefferson County Donald Sullivan, Electrical Engineer, Schaumburg & Polk STAFF PRESENT Bob Dickinson, Director, Transportation and Environmental Resources, SETRPC ]eremy Robison, GIS/Transportation Analyst, SETRPC Klm Reese, Administrative Assistant, SETRPC Dn~cs I ~F ~. SENATE BTLL S~ SECT?ON 388.005 ' WHAT DOES ZT MEAN TO AFFECTED POL]:TICAL SUBDTVIS1'ONS? - Dub TayIorr SECO Mr. Taylor stated that SECO is a division of the comptroller's office and that there is a good network in place for local outreach and assistance. SECO looks at the energy consuming components of public entitles. Buried in Senate Bill 5 (SB 5) Section 388.005 is a small provision regarding public entities. SECO assists in complying with this section of SB 5 and in tracking and reporting the success of the program. Mr. Taylor referred to the black and white handout in the packet, which is a summary of what SB 5 means and hopefully clarifies the bill as it applies to local entities. SECO's goal is to make the required reporting process as painless as possible - we are here to help you. Feedback during the process is very important. You can go to the website for compliance information and building efficiency - www.seco.cpa.state.tx;us. SB 5 is designed to bring the State into compliance with the Federal Clean Air Act. If we do not Comply by 2007, sanctions will be imposed - federal highway funding could be in jeopardy. The SB 5 focus is to reduce NOx, which cooks and produces ozone. There are 38 non-attainment counties in Texas and there are areas on the verge of non-attainment. It is a proactive program. Section 388.005 of SB 5 applies to public entities, tt is all about getting existing facilities in shape. Texas is growing, we 'are adding square footage and energy consumption is increasing. The goal is a S% reduction in electrical consumption each year for five years. The start date for this goal is .lanuary' 1, 2002. There is annual reporting to SECO to show how you are meeting the goals. Annual reports are due March ! of each year and will cover the calendar year. SECO is responsible in turn for reporting its findings to the TNRCC, and ultimately the legislature. SECO wants entities to find the best way to capture the baseline data and to give feedback regarding such procedures. Reporting tools are not firm - SECO needs input from you. When structuring your annual report, you zip code will identify your location. The goal is to get credit for any reductions in the State Implementation Plan (SIP), attain the quality standard and hOpefully keep transportation dollars in place. Mr. Taylor referred to the LoanSTAR program handout in the packet. Mr. Taylor also referred to the black and white handout listing some of the current entities enrolled in the program and welcomed all to contact any of the participants. SECO operates the program internally - the pool of funding is constant. This program has been around for about ten years. All controls for the program are on the front end in an effort to insure that the projects will be effective in reducing energy usage. Proqram hiqhlights: · Interest rate for school districts and other public entities is 3% · Funds are available on a "first come, first served basis" · Loan maximum is $5 million dollars - can have 2 concurrent loans · Maximum composite loan repayment period is ~.0 years · Legislatively authorized program (76~ session) · Must maintain a minimum funding level of $95 million · Current funds available - $30 million · Sign a Memorandum of Understanding (MOU) to hold the funds (MOU is not binding) · Request LoanSTAR guidelines from SECO · Prepare assessment {this cost may be rolled into loan) · Submit complete assessment and loan application to SECO Project implementation: · Once approved, loan recipient and SECO sign loan · Design specification prepared - must be approved by SECO · Construction begins · On-site monitoring by SECO at 50% and 100% complete · Repayment of loan begins when project is complete (Project implementation contact: Theresa Sifuentes @ 512/463-1896) Gettinq your 5% reduction: Retrofits - in-house or contract out Energy use awareness - employees and facilities personnel Good maintenance practices Systems Commissioning Energy Management .Pavino for it all: · General revenue · LoanS'TAR · Municipal bonds · Utility rebates and standard offer programs · Federal government loans and grants · Budgeted utility dollars ~d~ed: · Assess your current energy situation · identify viable projects · Do the engineering, design, construction, measurement and verification of savings · SECO will help with a preliminary audit · SECO can help identify contractors and financing Another way to finance your project is through an Energy Savings Performance Contract, now known as EWSPC (HB 3286 - 77R included water). These contracts guarantee the savings, there is no upfront expense; it is completely turn key and covers all costs associated with the retrofit, including financing costs. With performance contracts there is a written guarantee ~ if your project does not achieve the desired energy savings, you are paid the difference. See _www seco.cpa.state.b<.us/sa performcontract.htm for more information. There are great success stories of projects that have worked out not only in Texas but also throughout the country. Mr. Taylor stated that the 38 Texas counties in non- attainment that are covered by SB 5 are SECO's priority and most resources will be channeled toward these cOunties. Paoe 3 of 4 AD3OURNMENT Mr, Dickinson thanked Dub Taylor for presenting the information on SB 5 and expressed his gratitude to all for taking the time to attend the meeting. Texas State Energy Conservation Office 111 E. 17th St. Austin,TX 78711