COUNTY ADMINISTRATION OFFICE - R. ESPINOSA

Adopt Resolution approving County's participation in the Association of Monterey Bay Area Governments (AMBAG) On Bill Financing (OBF) program offering a 0% loans for qualified energy efficiency projects, and approve related contracts.   

SBC FILE NUMBER: 119

RESOLUTION NO: 2018-50

On the July 24, 2018 at the Board of Supervisors Meeting approved an Energy Savings Contract and resolution authorizing the Lease/Purchase Agreement with Banc of America. The Association of Monterey Bay Area Governments (AMBAG) has presented the County with an On Bill Financing (OBF) program offering a 0% loans for qualified energy efficiency projects.

The Association of Monterey Bay Area Governments (AMBAG) and Pacific Gas and Electric Company (PG&E) partnered to deliver the AMBAG Energy Watch Program, a regional leader in energy efficiency in Monterey, San Benito and Santa Cruz counties.

The AMBAG Energy Watch Program has been serving the AMBAG jurisdictions, businesses, nonprofits, school districts, special districts, and residents since 2006 with energy efficiency. The AMBAG Energy Watch program receives funding under the auspices of the California Public Utilities Commission to provide this support to the region. The majority of this funding goes into rebate incentives to offset the cost of completing energy efficiency project for stakeholders in the region.

Project Rebates & Incentives
AMBAG Energy Watch and PG&E provide rebates and incentives for projects that reduce energy use. Energy Watch staff will assist in streamlining the rebate process by managing applications with PG&E to ensure that rebate criteria is satisfied and the maximum potential incentive is obtained.

Financing

Under the direction of the California Public Utilities Commission, PG&E developed a financing program to provide incentives for jurisdictions to undertake energy efficiency projects. This financing program provides 0% loan financing that is anticipated to be paid back through the savings that is realized from the efficiency projects. The debt service will appear on the monthly PG&E bills at a rate that is estimated to be equal to the new monthly energy savings, so operational costs do not increase for the jurisdiction. 

The 0% financing, offers a maximum ten year pay-back period has been utilized successfully by many of the jurisdictions in the AMBAG region. The total project cost is $467,342. Of this cost, $65,645 will be paid for through incentives from the AMBAG Energy Watch Program. The remaining $401,698 will be funded by 0% On-Bill Financing provided by PG&E. This loan funded amount will be paid back at a rate that is anticipated to be equivalent to the monthly energy savings that is realized from this project. The annual debt service is anticipated to be $82,655 over a period of 4.86 years. After the payback period, the County will have an estimated net savings in energy costs of $82,655 annually.

There are no increases in operational costs, no capital costs and no financing interest costs. A description of the project sites and savings is included in the table below.

Adopt Resolution approving County's participation in the Association of Monterey Bay Area Governments (AMBAG) On Bill Financing (OBF) program offering a 0% loans for qualified energy efficiency projects, and approve related contracts, and authorize the Chair and the CAO to sign necessary documents required to participate in this program.