REVOLVING ENERGY FUND

POLICIES AND PROCEDURES

 

 

  1. COMMITTEE MAKEUP

The City Manager shall select a Revolving Energy Fund (REF) Team to review and recommend potential REF projects. The Team shall consist of a minimum of 3 members that may include city employees, elected and appointed officials and Homer citizens. Members shall not be from all one group.

 

 

  1. PROJECT SELECTION CRITERIA

The REF Team will assist the administration in deciding which facilities are the best candidates for an Energy Conservation Plan (ECP). An ECP shall be produced before a project is funded. An ECP may be paid for by the REF. The selection process to determine the initial ECPs will be based on data from the Homer Climate Action Plan Implementation Report.

 

The Team shall recommend energy conservation project funding based on the following criteria:

    1. An Energy Conservation Plan which identifies beneficial projects and estimates the potential savings.
    2. Projects that have an estimated energy saving payback of ten years or less.
    3. Projects must benefit a Homer City facility, where City fees or taxes pay energy bills.
    4. Projects will be selected primarily based on calculated payback and available funds, with the shortest paybacks having higher priority.

 

 

  1. PROJECT PLANNING AND IMPLEMENTATION GUIDELINES

REF projects will follow these steps:

    1. Preparation of an Energy Conservation Plan to estimate project implementation costs and project energy cost savings.
    2. The ECP will include specific descriptions of equipment to be supplied and work to be performed.
    3. ECPs and implementation may be done by City staff, force account, or contract.
    4. The project must be completed within a specified period.
    5. A schedule of repayment to the REF must be stated in the ECP.
    6. Credits to the REF will be posted on a quarterly basis.

 

 

  1. REF REPAYMENT

The Revolving Energy Fund is designed to be a self-sustaining loan fund. To achieve this goal, projects will pay back loans from the REF by contributing 80% of the estimated energy savings each year until the amount expended by the REF is paid back in full. The General Fund will typically receive a minimum benefit of 20% of the projected savings.

 

The Energy Conservation Plan will determine the estimated energy savings. The cost of Energy Conservation Plans will be counted as a project cost and will be subject to repayment to the REF.

 

Projects which qualify for REF funding, but are not funded by the REF, may be designated as REF projects and the ECP estimated energy savings will be credited to the REF under the same terms as REF funded projects. 

 

 

  1. REPORTING REQUIREMENTS

Within 60 days after the end of the fiscal year, a report will be prepared with a detailed accounting of expenses and savings for Revolving Energy Fund projects. The report will be submitted to the City Council.

 

 

  1. AMENDMENTS

The REF Team is expected to make recommendations on improvements to the REF process, as they deem advisable.