Fiscal Note
The proposed resolution accepts the recommendation of the 100% Renewable Madison report proposing Scenario 3 in order to reach 100% renewables by 2030. To achieve this goal, Scenario 3 anticipates a total increase of $95 million in capital investment over a twelve-year period. The 2019 Adopted Capital Budget and Capital Improvement Plan (CIP) currently contains $122.7 million for programs highlighted in the report. Comparitively, over the five year CIP period, the plan recommends the program funding be increased by $47.5 million, or 38%, to a total of $170.2 million.
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RENEWABLE |
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PLAN |
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CURRENT |
PROPOSAL |
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PROGRAM |
6-YEAR CIP |
6-YEAR CIP |
DIFFERENCE |
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Engineering - Facilities* |
$11,262,500 |
$15,762,500 |
$4,500,000 |
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Sustainability Improvements |
$4,500,000 |
$12,500,000 |
$8,000,000 |
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Metro Transit Coaches Replacement |
$46,205,345 |
$60,505,345 |
$14,300,000 |
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Fleet Service Vehicle Replacement |
$57,583,910 |
$75,783,910 |
$18,200,000 |
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Traffic Engineering Street Light Installations |
$3,180,000 |
$5,680,000 |
$2,500,000 |
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TOTAL |
$122,731,755 |
$170,231,755 |
$47,500,000 |
*(City Owned Building Improvement Programs)
GO Borrowing is the primary funding source for these capital programs. The additional GO Borrowing for these projects will increase debt service by approximately $928,000 annually, or $5.7 million over the full CIP.
Title
SUBSTITUTE - Accepting the 100% Renewable Madison Report and adopting the recommendation that the City follow Scenario 3 measures and timeline.
Body
WHEREAS in 2017 (#45569) the Common Council of the City of Madison resolved that Madison’s energy goals must reflect scientific consensus and community aspirations and adopted by resolution a community-wide Energy and Carbon goals of 100% renewable energy and net-zero carbon emissions, within a time-frame that aligns with sound and established science, as official energy and carbon goals of the City of Madison; and,
WHEREAS the City of Madison allocated up to $250,000 from the 2017 Capital Budget for third-party expertise required to develop a report for city operations to achieve goals of 100% renewable energy and net-zero greenhouse gas emissions; and,
WHEREAS in 2018, City staff, the Sustainable Madison Committee and the third-party vendor developed a report analyzing options under three scenarios for City of Madison operations to achieve 100% renewable energy and net-zero carbon emissions that includes target dates for reaching these goals, interim milestones, budget estimates, and estimated financial impacts; and,
WHEREAS in January of 2019 the Sustainable Madison Committee approved the 100% Renewable Madison Report after several months of discussion, public comment and review; and,
WHEREAS the Sustainable Madison Committee recommends the City of Madison pursue Scenario 3 for achieving 100% Renewable Energy and Zero Net Carbon by 2030; and,
WHEREAS Scenario 3 is responsive to the Paris Agreement requirements for reducing international carbon emissions, and the most recent report from the Intergovernmental Panel on Climate Change (IPCC), stating that global net human-caused emissions of carbon dioxide (CO2) would need to fall by about 45 percent from 2010 levels by 2030, reaching ‘net zero’ around 2050, which adds urgency for the City of Madison to act now; and,
WHEREAS the City of Madison is working on common environmental goals in collaboration with the local utility Madison Gas & Electric through a Memorandum of Understanding; and,
WHEREAS Powering city operations with 100% renewable energy will enable city officials to lead by example and accomplish multiple city policy objectives including job creation and economic development, cost savings to city taxpayers, promoting racial equity and social justice, contributing to long-term public health and vitality through improved air and water quality, and resilience in the face of more extreme weather events; and,
THEREFORE, BE IT RESOLVED by the Common Council of the City of Madison adopts the 100% Renewable Madison Report with the recommendation for the City to follow the Scenario 3 measures and timeline:
Scenario 3: 100% Renewable Energy and Zero Net Carbon by 2030
The Scenario 3 objective is to implement known measures to reduce the carbon footprint from city operations and minimize the reliance of external RECs or carbon offsets or reduce emissions from single occupancy vehicles. By 2030, city government will cut its carbon emissions by 55% with at least 25% of municipal operations’ electricity sourced by self-generated renewable energy. Investments in RECs and/or carbon offsets make up the remaining 45% of carbon emissions balance. This path is most consistent with the Paris Agreement requirements, involving more extensive investment over a longer period. Energy efficiency measures with short and longer paybacks are included, such as HVAC retrofits in buildings, in addition to water distribution and street and traffic lights. The City will invest in greening its fleet with most vehicles being converted to operate on electricity or compressed natural gas from non-fossil sources by 2030 with the remaining emissions being offset by RECs or carbon offsets. Electrification of the fleet enables the City to economically further expand its internal renewable energy generation, adding additional renewable generation opportunities to Phase 1 and Phase 2 behind-the-meter solar on city buildings; and,
BE IT FURTHER RESOLVED that staff will with work with commissions and committees to review and develop plans for policies, programs, procedures to achieve 100 % renewable energy and net zero carbon under Scenario 3 including, but not limited to, Board of Public Works, Transportation Policy and Planning Board, Finance Committee, Plan Commission, Community Development Authority, Water Utility Board; and,
BE IT FURTHER RESOLVED that the relevant committees and commissions will submit their plans by six months after adoption of the report; and,
BE IT FURTHER RESOLVED that members of the Sustainable Madison Committee will play an active role in supporting and guiding the relevant commissions and committees to reach these objectives; and,
BE IT FURTHER RESOLVED that the relevant committees and commissions will apply the City of Madison’s Racial Justice and Equity tool to their plans; and,
BE IT FINALLY RESOLVED that the Sustainable Madison Committee / City Staff should review their plans annually to confirm progress and update milestones due to the rapidly changing economic, technology, and policy landscape.