Page 1 of 2 LOW INCOME CONSUMER ADVISORY TASK FORCE AUGUST 7, 2015 9:00AM – 12:00 PM TOWN LAKE CENTER – ROOM 100 721 BARTON SPRINGS ROAD AUSTIN, TEXAS 78704 For more information: http://www.austintexas.gov/content/low-income-consumer-advisory-task- force AGENDA CALL TO ORDER 1. CITIZEN COMMUNICATIONS The first 5 speakers signed up prior to the meeting being called to order will each be allowed a three-minute allotment to address their concerns regarding items not posted on the agenda 2. APPROVAL OF MINUTES a. Approve minutes from July 17, 2015 meeting 3. OLD BUSINESS a. Discussion and possible action on on-bill repayment and financing arrangements b. Discussion and possible action on amendments to the multifamily energy efficiency program c. Discussion and possible action on low income energy efficiency program design including one-stop weatherization, program goals, and heating and cooling equipment repair and replacement d. Discussion and possible action on ECAD (Energy Conservation Audit Disclosure) including but not limited to enforcement and expanding scope of disclosure requirements to small rental properties e. Discussion of public comments and possible action in response to comments 4. NEW BUSINESS a. Discussion and possible action on definition of multifamily properties serving low and low moderate income customers b. Discussion and possible action on setting program standards to provide energy efficiency services on a priority basis to low and low moderate income customers that are at risk of service interruptions and/or on a payment plan c. Discussion and possible action on Building Codes d. Discussion and possible action on heating and cooling equipment repair and replacement e. Discussion and possible action on a third party assessment and verification in the absence of a code inspector f. Discussion and possible action on recommendations to coordinate energy and water efficiency programs with the housing authority The City of Austin is committed to compliance with the American with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. Meeting locations are planned with wheelchair access. If requiring Sign Language Interpreters or alternative formats, please give notice at least 2 days (48 hours) before the meeting date. Please call Liz Jambor at Austin Energy Department, 513-322-6353, for additional information; TTY users route through Relay Texas at 711. For more information on the Low Income Consumer Advisory Task Force, please contact Liz Jambor at 512-322-6353 5. BRIEFINGS & REPORTS a. Austin Energy staff update on the weatherization program job status b. …
Page 1 of 3 LOW INCOME CONSUMER ADVISORY TASK FORCE MEETING MINUTES AUGUST 7, 2015 The Low Income Consumer Advisory Task Force convened in a regular meeting at Town Lake Center, 721 Barton Springs Road, Room 100, in Austin, Texas. Chairperson, Carol Biedrzycki called the meeting to order at 9:00 a.m. Task Force Members in Attendance: Carol Biedrzycki (Chair), Tim Arndt (Vice Chair), Lanetta Cooper, Richard Halpin, Cyrus Reed, and Michael Wong. Karen Hadden was not present at the call to order, but arrived later. Chris Strand and Dan Pruett were absent. Staff in Attendance: Austin Energy (AE) staff included Debbie Kimberly, Liz Jambor, Stacy Lewis, Kurt Stogdill, John Umphress, Michael Husted, and Hayden Migl. Neighborhood Housing and Community Development Department (NHCD) staff included Letitia Brown. Debbie Kimberly introduced Hayden Migl as the new staff liaison to the Task Force. Chair Carol Biedrzycki stated that the City Council appointed Michael Wong to the Task Force at its August 6 meeting. Members and staff in attendance introduced themselves. 1. CITIZEN COMMUNICATIONS: GENERAL Scott Johnson spoke regarding the accessibility and user-friendly nature of the CPS Energy website. 2. APPROVAL OF MINUTES a. Approve minutes from July 17, 2015 meeting- A motion was made by Member Lanetta Cooper to approve the July 17, 2015 meeting minutes and seconded by Vice Chair Tim Arndt. Amendments were proposed. Under Old Business Item 3c, end of 1st paragraph: Add “The revised motion was not approved.” Under New Business, Item 4d, second sentence: Edit to read, “Employees of approximately…” Member Cooper and Vice Chair Arndt accepted the amendments and all members approved on a 7-0 vote. 3. OLD BUSINESS The Chair discussed the order items would be taken up in the meeting, and members distributed late back-up for various items. a. Discussion and possible action on on-bill repayment and financing arrangements - Member Karen Hadden introduced the document “Proposal for On Bill Repayment with Rebates” (Back-up Item 3a, August 7, 2015 meeting). Member Cyrus Reed motioned approval of the recommendation, and Member Richard Halpin seconded. Discussion included concerns of this program for the rental market, consequences if someone cannot pay their bill, target audience and designating it only for solar. The item was tabled until the next meeting. Page 2 of 3 b. Discussion and possible action on amendments to the multifamily energy efficiency program - This item was not discussed. c. Discussion and possible action on …
Summary of Low income Consumer Advisory Task Force Break Out Session Affordable Energy Summit July 17, 2015 At the 2015 Austin Energy Affordable Energy Summit a break out session was dedicated to the Low income Consumer Advisory Task Force. The purpose of the breakout session was to present information about the Task Force and its recommendations and to gather the comments and ideas of the attendees. Most of the participants were Plus 1 Partners of Austin Energy. The Plus 1 partners are Travis County, non profit organizations and churches that provide direct services to the low-income community and distribute billing assistance funds provided by Austin Energy customers in their rates and voluntary contributions. The breakout session was planned and conducted by Task Force members Carol Biedrzycki, Dan Pruett, and Richard Halpin. There were three sessions, each 45 minutes long. Austin Energy staff provided support. Each session began with a fifteen minute presentation followed by discussion. Attached is a transcription of the notes taken on the easel board in the room and the comments submitted on the note paper provided. The notes do not reflect all of the discussion. This summary is an attempt to recap the highlights of the discussion that should be of interest to the Task Force. These are observations of note: The discussion overwhelmingly focused on renters. A total of four people raised their hands during an informal poll to find out how many in the audience were aware of ECAD making a case for more aggressive outreach. There needs to be a seamless process for the elderly and others living in old homes that need repairs and weatherization. There needs to be a program to provide energy audits to low income renters who experience high bills and there should be a way to get the property owner to improve the efficiency. Water bills are a big problem. Landlords refuse to fix leaks. There was a consensus that loans are infeasible for low income customers. Many rental units available to low income households, including those that accept housing vouchers are energy inefficient. Code compliance should be able to do more. Following are the notes taken at the meeting. Notes from Low income Consumer Advisory Task Force Break Out Session Affordable Energy Summit July 17, 2015 Comments on the Easel Board Session 1 Task Force contact is Sady.Bartlett@austinenergy.com. More information …
Recommendation Number ____ Targeted Underserved Group: Low and moderate-income renters Time Schedule: Implement in 2015 (requirement) Budget Impact: none Brief Description: Change the Energy Conservation Audit and Disclosure (ECAD) to expand the requirement that all landlords provide, in writing, the results of an energy audit to prospective tenants in advance of their signing a lease, in advance of lease renewals, or upon request to include all rental properties, including single-family homes, duplexes, triplexes, fourplexes, and units designated as condominiums. Community Need: A majority of Austin residents rent and renters are disproportionally have lower incomes. Rental properties, particularly those with lower rents are often not very energy efficient. Landlords have little incentive to improve energy efficiency at their properties because it’s the tenants who pay the electric bills. Renters of single-family homes, duplexes, triplexes, fourplexes, and units designated as condominiums are currently entirely unprotected form unexpectedly high electric bills. The status quo is that renters are often blindsided by high electric bills after signing a lease. In some cases, a rental property with higher rent, but lower electric bills would be more affordable overall. Consumers should be provided the information they need to make an educated decision about where to live. Program Description: All landlords will be subject to the energy audit and disclosure requirements established in the multifamily portion of the Energy Conservation Audit and Disclosure (ECAD) ordinance. Landlords of single-family homes, duplexes, triplexes, fourplexes, and units designated as condominiums won’t be required to make energy efficiency upgrades, but will have to get energy audits done on their properties and will have to disclose the results to prospective tenants in advance of their signing a lease, in advance of lease renewals, or upon request.
Recommendation on Building Codes The Task Force finds that continued improvement in base energy codes to reduce peak and overall energy use is of benefit to low-income and middle-income residents and to Austin Energy overall. By reducing the energy use of new and rehabilitated buildings Austin can lower emissions and water use from existing fossil fuel plants, reduce the need to buy expensive peak power off the market and potentially provide demand response capabilities to meet peak demand or even participate in energy markets. The Task Force reaffirms the goal of making new home construction in Austin, Texas to be net-zero energy capable by the end of 2015, while recognizing there are challenges with fully meeting this goal. We recommend in 2015 that Austin Energy work with the relevant advisory committees, city departments and city council to adopt: 1. The 2015 IECC codes for residential construction, including local amendments to reach the net-zero-energy capable homes approved by City Council in 2007; Development of Austin’s 2015 Energy Code has begun including stakeholder meetings which have been ongoing. It is anticipated that changes to the code will result in a 12 – 15% improvement in efficiency compared to the 2012 Energy Code. This will bring us close to the goal of net-zero-energy capable homes 2. The local amendments should consider new technologies like making all homes “solar-ready,” incorporating demand response, energy storage and electric vehicle charging technologies as appropriate. Ensuring design and construction do not preclude the application of on-site generation, demand response, energy storage and electric vehicle charging infrastructure may be more appropriate. Issues of affordability must be considered, as sweeping requirements may add an additional financial burden to homeowners. Historically, the City has provided incentives such as ratings, rebates and rates that fit with the City’s goals and cost metrics to drive the adoption of new technologies until they reach market viability. 3. City Council should adopt a policy that builders of all new single family homes built after 2016 should offer buyers an optional solar package, either on the rooftop or as part of a community solar project. Not all homes are suitable for solar due to orientation or shading issues. Austin Energy is developing a community solar program that should be available for customers mid to late 2016. Community solar projects owned by third parties within Austin Energy’s service area would violate the exclusive right to provide electric …
TO: Low Income Consumer Advisory Takes Force FROM: Denise Kuehn, Director, Energy Efficiency Services DATE: August 7, 2015 SUBJECT: Questions Concerning the Success of the Better Buildings Grant – Multifamily Submitted in July 17, 2015 Low Income Consumer Advisory Task Force 1. Question: Did this program (Better Buildings grant-funded program focused on multifamily properties) work? Answer: Yes. In approximately one year (September 2012-September 2013) 1,587 multifamily units at 21 properties received comprehensive upgrades tailored to the specific, existing conditions discovered through a sample test-in and energy modeling process. As was discussed in the July 17th Task Force meeting, the lessons learned through the pilot program have been used to inform the current multifamily energy efficiency program design. 2. Was it cost effective? Answer: The $/kW value for the Better Buildings multifamily program was ~$895/kW. This number is a predictive estimate from REM/Rate® energy modeling software. The value is above the target that Austin Energy generally sets for energy efficiency program cost effectiveness (~$700/kW). The increased value can be attributed to several factors including costs associated with paying for the test-in/out and modeling process and the short timeframe for pilot project completion (increased rebates to encourage fast adoption by multifamily property owners). However, as was detailed in the July 17th memo from Austin Energy to the Task Force and as pertains to the impact on customers, the program was effective. Compared to similar properties, the multifamily properties that participated in the Better Buildings program have energy usage trending down. Please see the July 17th memo and explanation of kWh savings.
TO: Low Income Consumer Advisory Task Force (LICATF) FROM: Denise Kuehn, Energy Efficiency Services Director DATE: August 7, 2015 SUBJECT: Questions Concerning the Success of the Better Buildings Grant – Establishing of the Loan Loss Reserve Submitted in July 17, 2015 Low Income Consumer Advisory Task Force 1. Question: How many had defaulted loans? Answer: None - The loan loss reserve program was established in October 2012. Since then, over $5.4 million in loans have been extended to over 632 residential customers providing the avenue to purchase energy efficiency measures over a period of up to ten years at a reduced interest rate. Through June 2015, these customers have repaid $1.3 million without any loan defaults requiring the use of loan loss reserve funds. Currently, AE is working with Velocity Credit Union to reduce the $1 to $1 leverage (loan loss reserve) previously required, create opportunities for those customers that have slightly lower credit scores and reduce the amount of the monthly payment. Over 1.1 MW of demand savings were attributed to this effort as reported under the AE Home Performance program. AE Revolving Loan Total Since Offering Launch (10/1/12 – 5/16/15) Applications Received / Audits Completed 1,904 Retrofits Completed 1,863 Total Rebate Payments $4,237,001 Number of Loans Pre-approved 759 Loan Amount Pre-approved $6,676,422 Buy Down Cost $357,308 Number of Loans Closed per Velocity 632 Loan Amount Closed per Velocity $5,430,306
MEMORANDUM TO: Low Income Consumer Advisory Task Force (LICATF) FROM: Debbie Kimberly, V.P., Customer Energy Solutions DATE: July 31, 2015 SUBJECT: Response to Low Income Consumer Advisory Task Force (LICATF) Preliminary Recommendations On June 12, 2015, the LICATF submitted an interim report with preliminary recommendations to the Mayor, City Council Members and Council staff. As the task force works to finalize its recommendations by October 1, staff has prepared a response to the interim report for your consideration and reference. The attached document is prepared in matrix form, and summarizes areas of staff agreement, and areas that pose concerns. Hopefully, this will be helpful in your deliberations in future meetings. Additionally, I’ve attached a catalog of all suggestions that have been introduced during the course of the 19 task force meetings held to date. To the extent it may assist in prioritizing recommendations of the task force, the document may lend itself to be used as a tool in a future meeting of the group. As always, I am prepared to answer any questions the task force may have. 1 Low Income Consumer Advisory Task Force Interim Recommendations AE Response LICATF Draft Recommendations 6-12-15 Items Currently being Done and/or AE Agrees Items in Disagreement Comments/Background Carryover All Unexpended Weatherization Funds (CAP and Supplemental Weatherization (AEWX) provided via the EES tariff) AE can support this approach. In 2013, the WX contract was not in place until late in FY13; as such, CAP and AEWX funds were underspent ($1.2 MM audited). In 2014, $1.375 M was spent on CAP ($375 K over budget) and $730K on AEWX ($120K under budget). So, going into FY15, roughly $1 M in ‘cumulative carryover’ funding remained. At this writing, staff anticipates obligating $1.5 million and $.5 million in CAP and AEWX funding in FY15. Additional funds may be encumbered when new weatherization contracts are finalized. Dedicating Multi-Family (MF) Program Funds to Affordable Housing AE supports increased outreach to MF housing that is occupied by a large percentage of low income residents. AE is developing a proof of concept launch in 2016. Properties will be identified using the Guide to Affordable Housing in the Greater Austin Area. Measures will be similar to the Earmarking 50% of MF budget for low and moderate income properties is a general number without a defined basis. AE does not income qualify residents, other than for the CAP program. To do so …
Page 1 of 3 LOW INCOME CONSUMER ADVISORY TASK FORCE MEETING MINUTES July 17, 2015 The Low Income Consumer Advisory Task Force convened in a regular meeting at Town Lake Center, 721 Barton Springs Road, Room 100, in Austin, Texas. Chairperson, Carol Biedrzycki called the meeting to order at 9:10 a.m. Task Force Members in Attendance: Carol Biedrzycki , Tim Arndt, Lanetta Cooper, Karen Hadden, Richard Halpin, Cyrus Reed, and Chris Strand. Members Dan Pruett and Kelly Weiss were not in attendance. Staff in Attendance: Austin Energy (AE) staff included Debra Athearn, Sady Bartlett, Debbie Kimberly, Brian Kennedy and Denise Kuehn. 1. CITIZEN COMMUNICATIONS Alan Graham, President of Mobile Loaves and Fishes-Provided information on what his non-profit was doing to serve the homeless population. They are developing a homeless housing development in far East Austin. He shared challenges and issues with development such as paying for property taxes and energy costs. He encourages the Task Force to look at the Gridmates model. The mission of Gridmates is to end energy poverty by enabling crowd funding of energy and energy sharing. People can give a small amount of energy to others in need. Al D’ Andrea, Owner McCullough Heating and Air Conditioning and a Free Weatherization contractor-He asked the Task Force to give consideration to LED light bulbs for energy efficiency measures as purchasing prices are now low. They can purchase them in bulk. The Task Force could also think of a 2-step program for Free Weatherization by doing a neighborhood-wide canvasing to install water-saving devices, smoke alarms, and LED’s. 2. APPROVAL OF MINUTES A motion was made by Member Chris Strand to approve the June 19, 2015 meeting minutes and seconded by Member Cyrus Reed. The Chair proposed amending item 5 b. to add “staff provided a handout of current weatherization project contracts expire June 23, 2015 and new contracts are being negotiated”. Member Richard Halpin motioned to approve amended minutes. Member Strand seconded. All approved 7-0. 3. OLD BUSINESS a. Discussion and possible action on on-bill financing and/or repayment-This item was tabled and would be reposted for the August 7, 2015 meeting. Member Halpin asked staff to give exact numbers of defaulted loans. b. Discussion and possible action on amendments to the multifamily energy efficiency program-Member Tim Arndt presented document, “Comprehensive Multifamily Program Recommendation” (Back-up-Item 3b, June 19, 2015 Meeting). Discussion followed. Member Reed questioned staff on the cost-effectiveness …
