Green Building Retrofit Group meeting February 11, 2010

Mission 100% of buildings in the city of Cleveland will have a 50% reduction in energy through retrofits by 2019.

And towards this mission set a goal by July, 2010 of having written up a plan for the city’s consideration, a comprehensive retrofit plan. The goal of that plan is to impact all buildings, but by income levels and different financing models (the group looked at best practices).

The two subcommittees will do the detailed work

Paul Ettorre is heading up one subgroup and Chuck Ackerman the other subgroup With goal of writing that up as a plan for the city

Not deep energy retrofits but ‘retrofit’

A goal is to have this be adopted by the city?

In concert with whole summit agenda.

Andrew Watterson – it’s an audacious goal. I would only add something about it’s a model for other communities; a replicable model where we can bring retrofits to scale.

To have an action plan

Ettorre -- The working groups are all over the place with their goals and metrics that’s the nature of a dynamic community we really want to stand out and deliver something that is absolutely concrete. This is nothing compared to what some of the others are working on.

Andrew – I’m less concerned about achieving the goal than in seeing how far we can get.

Bill Callaghan – we know how to retrofit homes; the technology is new.

Mandy Metcalf -- we want this to be feasible

We’re just figuring out how to scale up energy retrofits.

Scale up energy retrofits. In the Ohio legislature the pay as you save model to link with solar improvement districts that could open the framework this year…

Andrew -- To go after bonding and attach the secure debt on the improvements – so the public could go out and pay for the improvements with the secure debt.

We cannot force people to retrofit their buildings.

Linda Warren – this is in their self interest; yeah we can’t make them but can make compelling case to get them pretty close to 100%

Sin jin – translating that into ROI and what’s the capital outlay it’s a hazy issue to figure out how to retrofit After the subcommittee’s figure this out i.e. how to ramp up energy retrofits, what happens there? How does this plan have impact, and where does Jackson admin. fit in?

Andrew – I don’t have the answers. There’s no adoption of plans other than planning commission and this isn’t what commission endorses, but a resolution of council is possible. We’re pretty confident it’s not the city that’s going to be doing this work. We’re going after money from Feds to do this kind of work. Other than Mayor putting his weight behind it…there’s not an easy

CPP is a formal partner in the Hayes program (with Community Development and Water Department).

Would it seem like a good idea to have CPP as a partner.

Possible scenarios

Assessment districts (Special Energy District)

Role of CPP

Andrew – (The city) said yes on the Special Improvement District – but it’s the individual properties that sign on. So it’s more about the commercial building sector. With residential it could be couple times a year.

Ettorre -- With summit it was about the bold leadership of you (Andrew) and the mayor. For a plan (100% retrofits) this bold to have genuine programming around it has to be linked back to you and the mayor. Does this have leadership of your team? I think that’s critical. I think we need touchstones with your team to make sure we’re not getting off the reservation.

Andrew – if we get the fed money we’re going after that program. If we can figure out how to secure it. CPP is launching its energy efficiency group so there’s a pathway to figuring out that program. The word adoption is what I’m getting hung up on – if we do a program that’s as good as an adoption.

The RFP for a strategic plan drafted council is a sounding board and they give us frank advice. The Fed has been helpful seeing the trends and helpful seeing what will create jobs and reduce our carbon footprint and clearly energy efficiency is a big part of that strategy and for creating jobs.

Linda – part of the summit 2010 is time for reporting out . We did a lot of analysis, options around different approaches. It would make sense to sit down with city and figure out

Andrew -- we’re awarding a contract on the retrofit ramp up what about this team work with that team from the city that’s picking the consultant to make sure it aligns with the 2019 group’s goal. The consultants are contracting with Shorebank and will tap $500,000 in stimulus funds the city already has.

The program the city has on-bill financing planning on doing about $5,000 improvements per home and no out of pocket for homeowners. They would pay back the loan in energy savings of those improvements. It’s delivered in a way showing energy consumption what would have been without improvements and with – you’re paying back the loan but there’s a sense you’re getting something for free. Shorebank has it in a revolving loan fund that they use it for new loans.

The (pilot) that’s ‘on steroids’ adds solar into this. We do this in conjunction with multifamily housing and when doing solar also do energy efficient retrofits. Do the solar through the (Special Energy Districts) or a voluntary assessment on the property.

Is there criteria on qualifying?

From lenders you’re bundling this together and risk is mitigated by utility taking the loan and the risk. We’re stimulating this work with grant funds so have this free start where going forward.

Stay with the property?

Yes, essentially becomes a lien on the property – you just keep paying it off. The problem now is the utility bill goes with person so state law would have to change to allow the bill to be on the property or the improvement to the property (not the owner).

Dominion has been interested and CPP is interested but not FirstEnergy

CPP wants to do whole home LED retrofits. And will introduce legislation to decouple getting all revenues from selling power to selling revenue for energy efficiency.

They EEBG folks would be willing to be on this committee.

Other cities that have free thermostat program usually couple it to rate hikes.

The pay as you save tailored to each property owners and their economic situation. Deployment is where ‘wealth building comes in’ whether through Evergreen or Cleveland Housing Network, it will create jobs. And to get at culture piece of energy saving.

Whether it’s training people at CDCs or training others it’s an economic dev.

CPP has established its energy efficiency and conservation dept. It has expressed interest in doing some of the retrofit work – they’re doing audits for their commercial customers and some lighting retrofits.

This is a process by which you judge its scalability. Having econometrics and scale of what getting to

In Chicago, taking HWAP and taking EEBG together to do more measures in the house

Linda looked at a power purchase agreement on affordable housing.

FirstEnergy is reimbursing its customers for energy audits with menu plan and how to deliver

Andrew agreed this committee can work in tandem with the consultant (when contract is hired) who will do a feasibility plan for the pay as you save on bill financing of retrofits and meet through entire design phase that there be “a sharing of DNA” and goals.

This group will have to document it and reinforce that this process works.

Andrew we’re engaging CPP and trying to get looped in on the Waste to Energy facility work around lighting

Bill – sounds like there are two or three entities thinking about EE. Thinking of this as what could happen to my house Extreme Home Retrofit. How do you coordinate with lead abatement and indoor health issues related to old homes?

Andrew there’s no known market study but it’s a darn good idea. It’s better than free because you get the savings

Other business: An update on Emerald Cities, Apollo Alliance, National Coalition of Labor is coming in March. Chanel, the local rep for Apollo Alliance said: This is a national org with one goal: Greening urban areas. Portland, Milwaukee and Cleveland are on the short list and Sherrod Brown’s going to support. Emerald Cities is about creating a model for retrofitting cities. This is about high roads jobs and creating green career pathways. Hoping that Cleveland is on the finalists the three cities selected. Emerald Cities access to capital, communications, policy, advocacy – it’s the implementation side.