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HomeMy WebLinkAboutAgenda 05-24-22; 8-e - Community Climate Action Grant (CCAG) FY 2021-22 Project Approval for Chapel Hill Carrboro City Schools “Creating a Solar Future for CHCCS” Application 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 24, 2022 Action Agenda Item No. 8-e SUBJECT: Community Climate Action Grant (CCAG) FY 2021-22 Project Approval for Chapel Hill Carrboro City Schools "Creating a Solar Future for CHCCS" Application DEPARTMENT: Asset Management Services ATTACHMENT(S): INFORMATION CONTACT: 1) CCAG FY 2021-22 "Creating a Solar Amy Eckberg, (919) 245-2626 Future for CHCCS" Application Steven Arndt, (919) 245-2658 Summary 2) Memo from CFE with Recommendations and HRC Scoring and Comment PURPOSE: To: 1) Review the application summary submitted by Chapel Hill Carrboro City Schools — "Creating a Solar Future for CHCCS"; 2) Receive the grant recommendations for the Chapel Hill Carrboro City Schools' "Creating a Solar Future for CHCCS" project from the Commission for the Environment (CFE) and the Human Relations Commission (HRC) for the FY 2021-22 Orange County Community Climate Action Grant Program; and 3) Approve funding for the recommended Community Climate Action Grant "Creating a Solar Future for CHCCS" project for FY 2021-22 BACKGROUND: As part of the FY 2019-20 budget, the Board of County Commissioners (BOCC) created the Orange County Climate Action Fund dedicated to accelerating climate change mitigation actions in Orange County. This decision was motivated in part to help the County meet the climate change mitigation goals set by the Board in recent years: • Reduce greenhouse gas emissions community-wide by 26 percent by 2025 (from 2005 levels). • Transition to a 100% renewable energy based economy by 2050. For the FY 2021-22 funding cycle, $536,665 in funding was budgeted to support climate action projects that will benefit Orange County residents both socially and financially. Following the direction of the Board of Orange County Commissioners (BOCC), the process for soliciting and 2 selecting projects to receive funding was conducted through a formal Community Climate Action Grant (CCAG) program. For this grant cycle, the BOCC reserved half of the total funding for the grant program ($268,332.50) to be awarded to projects submitted by either of Orange County's two public school districts. The remaining half ($268,332.50) was to be made available to all other eligible general applicants. Only one project totaling $68,616 was submitted from either school district, and no funding was recommended for approval. In light of the Board's interest in supporting school climate action projects and the special challenges facing schools as they operate during a pandemic, the current grant deadline for school projects was extended through the end of November 2021. County staff reached back out to the schools to offer direct assistance in generating project proposals for this extended FY2021-22 round of funding as well as the FY2022-23 round of funding set to open later this year. The additional time gave CHCCS an opportunity to create a proposal for a new and different project — "Creating a Solar Future for CHCCS". Chapel Hill Carrboro City Schools submitted the "Creating a Solar Future for CHCCS" application for $250,000. A summary of the application is provided in Attachment 1. The Commission for the Environment reviewed the application at its January 10, 2022 meeting and provided a memo (Attachment 2) outlining its recommendations. The Human Relations Commission reviewed the application at its February 22, 2022 meeting. Additional demographic data and more detailed responses to some of the social justice and racial equity questions were requested and subsequently provided by CHCCS. The Human Relations Commission further reviewed the materials submitted at its March 22, 2022 meeting and provided a score and comment on the social justice and racial equity component of the application (Attachment 2). CHCCS is motivated to move quickly on solar installation to take advantage of incentives through Duke Energy schedule to expire the end of 2022. A unique opportunity exists to explore a joint request for proposals (RFP) with Orange County Schools to combine the previous award of $150,000 from the FY 2019-20 grant cycle that was awarded to both Orange County Schools and Chapel Hill Carrboro City Schools for solar, thereby increasing the solar purchasing capacity and coordination. FINANCIAL IMPACT: The Climate Action Tax Grant program received $536,665 in funds in FY 2021-22, and the Board of Commissioners has already approved six impactful projects totaling $268,332.50. The remaining $268,332.50 is recommended to fund the "Creating a Solar Future for CHCCS" project totaling $250,000. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. Social Justice and Racial Equity is the most heavily-weighted factor in scoring projects proposed through this grant program, ensuring that the equitable distribution of funds and the repair of environmental inequities are a central element of each funded project. Local investments in 3 energy efficiency and renewable energy in Orange County provides direct reduction of monthly energy bills and supports jobs and investments in clean energy technologies. • GOAL:ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND ENVIRONMENTAL POLICIES The fair treatment and meaningful involvement of people of all races, cultures, incomes and educational levels with respect to the development and enforcement of environmental laws, regulations, policies, and decisions. Fair treatment means that no group of people should bear a disproportionate share of the negative environmental consequences resulting from industrial, governmental and commercial operations or policies. Reducing energy usage from the electric grid improves air quality impacts. Improving local air quality helps to protect the health of vulnerable populations in Orange County whose health is disproportionately affected by ground-level ozone and other emissions. ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal impacts are applicable to this item: • ENERGY EFFICIENCY AND WASTE REDUCTION Initiate policies and programs that: 1) conserve energy; 2) reduce resource consumption; 3) increase the use of recycled and renewable resources; and 4) minimize waste stream impacts on the environment. Investing in local climate change mitigation actions will conserve energy, reduce resource consumption, and increase the use of renewable resources. • RESULTANT IMPACT ON NATURAL RESOURCES AND AIR QUALITY Assess and where possible mitigate adverse impacts created to the natural resources of the site and adjoining area. Minimize production of greenhouse gases. The Climate Action Fund will continue to support high-impact projects which will improve local air quality and minimize the local production of greenhouse gases, reducing Orange County's contribution to the adverse impacts of climate change on human and natural resources both inside and outside of the County. RECOMMENDATION(S): The Manager recommends that the Board: 1) Receive the grant project funding recommendations from the Commission for the Environment and the Human Relations Commission for the FY 2021-22 Orange County Community Climate Action Grant Program project submittal — "Creating a Solar Future for CHCCS"; and 2) Approve funding of $250,000 for the recommended Community Climate Action Grant project — "Creating a Solar Future for CHCCS" — for FY 2021-22. 4 ORANGE COUNTY NORTH CAROLINA Attachment 1 Community Climate Action Grant Application Summary: "Creating a Solar Future for CHCCS" Chapel Hill-Carrboro City Schools (CHCCS)paid$2,107,228 over the last 12 calendar months for energy across all campuses and supporting facilities, one of the largest energy consumers in Orange County. Electrical consumption makes up nearly 82% of energy expenses with natural gas accounting for the remaining 18%. Total energy consumption equates to 24,838 tons of emitted greenhouse gasses each year. CHCCS is mindful of its role as one of the largest energy consumers and contributors of greenhouse gasses (GHG) in Orange County and seeks to reduce its carbon footprint. CHCCS currently does not lease or own any photovoltaic (PV) arrays that produce meaningful energy. This is an unrealized opportunity to meet sustainability goals, lower operating expenses, and connect with students and the community more fully while engaging with an energy source that is now financially competitive with other means of energy production on a large scale. The lease or purchase of three 100kW PV arrays, located at Chapel Hill High School, East Chapel Hill High School, and Carrboro High School would lead to several primary benefits with many ancillary benefits: 1. Reduction in greenhouse gas emissions (332 tons/yr.) 2. Annual electric energy savings (up to $32,844/yr.) 3. Education and awareness opportunities for students, staff, and community(3,844 students, 400 staff/yr.) Savings from the proposed arrays would contribute to the lease or purchase of additional PV arrays at other viable CHCCS campuses, pending roof condition assessment at each school, thereby compounding energy savings and GHG reductions once operational. Each PV array will be net metered and operate for approximately 25 years. Energy production will offset consumption from Duke Energy Carolinas and Piedmont Electric Cooperative according to their service rate schedules. Lifetime avoided costs due to energy savings are an estimated $651,190 over a 25-year period. This includes an annual 2%performance degradation factor but excludes any utility rate escalation. Duke Energy is offering an incentive up to $75,000 per 100kW array which is scheduled to sunset after 2022. This incentive may apply to both Chapel Hill High School and East Chapel Hill High School locations. Carrboro High School is served and metered by Piedmont Electric Cooperative and does not qualify. 5 ORANGE COUNTY NORTH CAROLINA Federal incentives may be available up to 30% of the cost of a purchased PV array. Legislation is pending. The 30% credit has not been included in the financial calculation. If realized, the savings will be used exclusively to fund the three proposed PV arrays with any rollover applied to future PV arrays. CHCCS would like to move quickly on solar installation to take advantage of these incentives. A unique opportunity exists to explore a joint RFP with Orange County schools to combine the previous award of$150,000 from the FY 2019-20 grant cycle that was awarded to both Orange County Schools and Chapel Hill Carrboro City Schools for solar, thereby increasing their solar purchasing capacity and coordination. As a trusted resource with over 100 years of experience, CHCCS is poised and ready to educate and inform students and members of the community about the benefits of solar. CHCCS plans to offer a variety of educational opportunities in different formats to the community related to the fundamentals of energy,understanding energy bills, fundamentals of solar PV design, renewable energy, and site considerations. 6 ORANGE COUNTY NORTH CAROLINA Attachment 2 Community Climate Action Grant Scoring and Recommendations: "Creating a Solar Future for CHCCS" 2021-22 ORANGE COUNTY COMMISSION FOR THE ENVIRONMENT MEMORANDUM TO: Orange County Board of County Commissioners FROM: Commission for the Environment DATE: January 20, 2022 RE: FY 2021-22 Community Climate Action Grant Proposal Review At our Monday January 10th, 2022 meeting, as requested by the Board of County Commissioners (BOCC), the Commission for the Environment (CFE) reviewed a FY 2021-22 Community Climate Action Grant proposal from the Chapel Hill-Carrboro City Schools (CHCCS) titled Creating a Solar Future at CHCCS. The proposal calls for the installation of 100kW rooftop photovoltaic arrays at the District's three high schools (Chapel Hill High School, East Chapel Hill High School and Carrboro High School) to offset energy consumption, reduce greenhouse gas emissions and incorporate sustainability-related educational content for students at CHCCS. Of the $268,000 currently available for the public school system, CHCCS are requesting $250,000 for this project. After robust discussion, the CFE voted to recommend approval of the grant application by CHCCS. The CFE spent considerable time discussing the Renewable Energy Credits (or REC's) for the project, and how those benefits would or might accrue. To this end, the CFE also recommends that the Board consider the following if the project is approved and pursued: • That CHCCS hire an appropriate consultant to manage the design and construction of the projects, to ensure that the schools receive the maximum environmental benefit from this initiative. 7 ORANGE COUNTY NORTH CAROLINA Finally, as part of the discussion at the January 10 meeting, the CFE would like to note that there are substantial resources and additional information available regarding the ultimate arrangements for the REC's, which would be useful to the County and CHCCS. Thank you for the opportunity to review and make a recommendation. Please let us know if there are any questions. Copies: Commission for the Environment Bonnie Hammersley, County Manager Travis Myren, Deputy County Manager Laura Jensen, Clerk to the BOCC David Stancil, DEAPR Director Steve Arendt, Asset Management Services Director Christian Hirni, Land Conservation Manager Wesley Poole, Water Resources Coordinator The Human Relations Commission reviewed the "Creating a Solar Future for CHCCS" at their March 22, 2022 meeting and provided a score of 3 out of 5 possible points for the social justice/racial equity criteria of the application and made the following comment: "We recognize there were some limits to the social justice component which is why it was given a score of 3 and some of those limits were due to the challenges of Covid. We are encouraged with their efforts to address this moving forward."