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Approve a four year funding agreement with the Association of Bay Area Governments totaling $1,978,618 to continue implementing the climate programs of the Bay Area Regional Energy Network (BayREN) to reduce energy, water, and greenhouse gas emissions through activities approved by the California Public Utilities Commission and designed to achieve long-term utility savings for residential, commercial, agricultural, and government sector customers within Solano County through December 31, 2027; and Delegate authority to the Director of Resource Management to execute the agreement, service contracts, and any subsequent amendments, within budgeted appropriations and with County Counsel concurrence
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Published Notice Required? Yes ___ No _X _
Public Hearing Required? Yes ___ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of Resource Management recommends that the Board of Supervisors:
1. Approve a four-year funding agreement (Attachment A) with the Association of Bay Area Governments totaling $1,978,618 to continue implementing the climate programs of the Bay Area Regional Energy Network (BayREN) to reduce energy, water, and greenhouse gas emissions through activities approved by the California Public Utilities Commission and designed to achieve long-term utility savings for residential, commercial, agricultural, and government sector customers within Solano County through December 31, 2027; and
2. Delegate authority to the Director of Resource Management to execute the agreement, service contracts, and any subsequent amendments, within budgeted appropriations and with County Counsel concurrence.
SUMMARY/DISCUSSION:
The Bay Area Regional Energy Network (BayREN) is led by the Association of Bay Area Governments (ABAG) in collaboration with its member agencies represented by the Bay Area counties of Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma. BayREN’s comprehensive resource efficiency programs are uniform throughout the nine counties making participation consistent and easy for contractors who work across county lines as well as property owners who own properties in different counties. Since 2013, BayREN’s programs offer rebates, direct funding, and technical assistance to help renters, property and business owners, realtors, and government entities improve the energy efficiency of their homes and buildings to increase safety and comfort. Additionally, regional coordination is contributing to California’s statewide climate goals of doubling energy efficiency in existing buildings by 2030 and reducing greenhouse gas emissions from existing buildings by at least 40 percent below 1990 levels by 2030. These concerted efforts also support the goals and measures identified in Solano County’s Climate Action Plan.
On June 23, 2020, the Board of Supervisors approved a three-year funding agreement with the Association of Bay Area Governments (ABAG) for $374,253 to implement the Bay Area Regional Energy Network (BayREN) Program through December 31, 2022. The Program is divided into separate areas of focus and include: Single Family; Green Labeling; Multifamily; Water Upgrades Save; and Codes & Standards. Due to a departmentwide staffing shortage, this agreement was amended to increase the contract by $459,751 to offset a service contract with Solano Economic Development Corporation (Solano EDC) to assist with implementing BayREN Programs on behalf of Solano County. The amendments recognized a new total contract amount of $834,004 and an extension of the term through December 31, 2023. Solano EDC’s scope of work included development of marketing materials, attending Program meetings and community events, conducting one-on-one education to small-to-medium size businesses, and following up with and assisting interested parties. The County’s contract with ABAG to administer the BayREN Program from 2020-2023 resulted in energy improvements amounting to $589,697 in rebates for participating residents and businesses countywide. These energy efficiency rebates applied to heat pump water heaters, induction cooktops, refrigeration, lighting, HVACs, tankless water heaters, and more.
In September 2023, the California Public Utilities Commission approved ABAG’s new business plan and budget that included an expansion of the BayREN Program from five to ten programs with the addition of BayREN Business, BayREN Refrigerant Replacement, Integrated Energy Services, Targeted Decarbonization, and Climate Careers. This results in the opportunity for a new four year agreement through December 31, 2027 for a total contract amount of $1,978,618 to account for extension of existing programs, as well as the addition of five new Programs and their related activities.
This funding agreement with ABAG is meant to recover 100% of the member agency’s costs to implement the BayREN Program within their respective county. These costs include regional coordination, administrative oversight, program design, education and outreach, and contractor recruitment. BayREN activities prioritize assisting single-family residents, multi-family property owners, and small-to-medium size businesses with obtaining technical assistance and getting financial resources to identify the best approach for the customer to achieve greater energy and water savings. A BayREN Program task also ensures coordination with government entities to evaluate how to further their compliance with the State’s energy regulations to make Solano County a greener, more resilient, more equitable and more sustainable place to live.
The County will retain 15% of the contract amount for administration and allocate 85% to professional services that can provide outreach, training, and technical assistance to ensure the BayREN Program is promoted and available to all sectors countywide.
FINANCIAL IMPACT:
BayREN is funded by the public purpose surcharge collected from rate payers and administered by the California Public Utilities Commission to implement energy efficiency programs statewide. The cost of preparing the agenda item is nominal and absorbed by the Department’s FY2023/24 Working Budget.
ALTERNATIVES:
The Board could choose to not approve the agreement but this is not recommended since the Association of Bay Area Governments is the recognized energy efficiency program administrator by the California Public Utilities Commission to receive funds originating from the public purpose surcharge collected from rate payers.
OTHER AGENCY INVOLVEMENT:
County Counsel and the County Administrator’s Office have reviewed this report and concur with the Department’s recommendations.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION