Madison’s Sustainable Design and Energy Committee: Notes from Portland, Oregon October 3, 2005

Challenge for a Sustainable City: City Energy Use Energy costs scheduled to increase Identify, improve energy use in facilities ROI—must be a good investment, payback Answer to many stakeholders Accounting, budgetary--Share the savings with departments, OSD, general fund? Keep an eye on the big picture

What you get from energy efficiency Save energy, money Walk the talk—show by example Create, bolster a market for green business Stakeholder participation Greenhouse gas emissions Energy use key component of sustainable city principles Soft benefits—PR, productivity, morale

How to do Achieve Energy Efficient City Facilities: Notes from Portland City energy policy 1979, updated 1990 Goal of improving energy efficiency 10% City Energy Challenge 1991 Save $10 million from Reduce total energy usage by 20% $2.6 million in capital investment; IRR 25.7% Avoid 115,000 metric tons of CO2 emissions

OSD Mission OSD’s mission is to provide leadership and contribute practical solutions to ensure a prosperous community where people and nature thrive, now and in the future. Through outreach, technical assistance, policy and research, OSD promotes informed choices to –Increase the use of renewable energy and resources –Reduce solid waste and conserve energy and natural resources –Prevent pollution and improve personal and community health

OSD Vision Our choices and actions create a healthy and prosperous community where: –Water and air are pure and clean –Land is productive and used in ecologically sound ways –Natural resources are used wisely –Energy is renewable –People, plants, salmon and other animals thrive in a healthy ecosystem –Rewarding work supports families –Neighborhoods are vibrant and green –People participate in community life as active, responsible citizens –Buildings are beautiful and efficient –Food is healthy, plentiful and accessible –Residents can easily walk, bicycle, carpool, or ride public transit as their first choice of transportation

OSD Core Areas OSD has primary responsibility within the City for setting the agenda and goals and implements  Solid waste  Energy  Greenhouse gases  Food systems Other City agencies set the agenda and goals, and OSD helps implement  Water efficiency  Stormwater  Jobs  Equity (e.g., affordable housing)

OSD Core Areas Other City agencies take the lead with minor involvement from OSD  Air quality  Land use  Contaminated land (brownfields)  Parks/open space  Transportation

City Energy Challenge: How it Works OSD provides technical and financial assistance to other city departments Assesses each bureau a fee for services equal to 1% of energy budget ($15,000 cap) Departments are clients; beneficiaries Share energy cost savings to fund OSD staff, return to departments, general fund

City Energy Challenge: Services Provided by OSD Energy audit Technical assistance Financial assistance Energy report Staff training on energy and sustainability Newsletter Awards and recognition

City Energy Challenge: Key Components Retrofit and controls in existing buildings and other facilities and operations Design and technical assistance on new construction Assess opportunities in operations: transportation, maintenance, others Utility rate and green power negotiations Staff input and training

City Energy Challenge: Examples Portland Building: Energy analysis showed $67,000 annual energy savings through lighting retrofits and controls New Construction—Portland LEED® for city facilities, public financed private bldgs PV powered maintenance trucks Purchase green power from utility

How does City Energy Challenge fit into the big picture? Hedge future energy cost increases Basis for code, efficiency updates Potential to achieve 20+% IRR Cornerstone of Sustainable City Policy Revenue source to fund OSD staff person Share knowledge with other local govt’s

Lessons from Portland Identify energy savings goals Scan other cities approaches: Austin, TX; Ann Arbor, MI, US Conf. of Mayors Evaluate Financing Alternatives: Bonds, Grants, Leases, ESCO services, etc. Review engineering/metering opportunities Develop Green Teams for stakeholders Consider Inter-governmental cooperation

Lessons from Portland (cont’d) Interview key personnel (internal and external) Develop appropriate delivery mechanism Assess renewable, green energy options Keep an eye on the big picture—how energy fits into a sustainable city (transportation, land use, local business, etc.)

Additional Resources US Conference of Mayors: Selected Best Practices for Successful City Energy Initiatives, 2001 Smart Communities Network: Creating Energy Smart Communities Success Stories Focus on Energy, Government Program MG&E, Energy Efficiency Program

Josh Arnold, J.D., M.B.A. LEED® Accredited Professional Manager, Sustainable Development Franklin Energy 211 S. Paterson Street, Suite 200 Madison, Wisconsin