Agenda Item 5D
April 22, 2014
Action
MEMORANDUM
TO:
FROM:
County Council
Amanda Mihill, Legislative
Attorney~
~ichael
Faden, Senior Legislative Attorney
SUBJECT:
Action:
Bill 9-14, Environmental Sustainability - Renewable Energy - County Purchase
Transportation, Infrastructure, Energy and Environment Committee recommendation (2-0):
enact Bill 9-14 as introduced.
Bill 9-14, Environmental Sustainability - Renewable Energy - County Purchase, sponsored by
Councilmember Berliner, Council Vice President Leventhal, and Councilmembers Floreen, Riemer,
Andrews, and Navarro, was introduced on January 28, 2014. A public hearing was held by the
Committee on February 11 and a Transportation, Infrastructure, Energy and Environment Committee
worksession was held on February 26. At the hearing, a representative of the Executive expressed the
Executive's general support for the package of environmental initiatives (©5).
Bill 9-14 would require that 50% of the County's electric power usage be supplied with
renewable energy by Fiscal Year 2015 and 100% by 2020. Currently, 30% of the County's electric
power usage is supplied by renewable energy.
Councilmember Berliner explained the purpose of this Bill in his January 14 memorandum
describing his proposed energy/environmental package (©6).
The Fiscal and Economic Impact statements for this Bill are on ©10. The Office of Management
and Budget estimates that the cost to purchase an addition 20% renewable energy
in
FY15 would be
$48,498.
Committee DiscussionlRecommendation
At the worksession on Bill 9-14, Committee members requested Executive staff to provide a cost
estimate to increase the County's purchase of renewable energy to 100% in FYI5. The fiscal impact
statement on ©11 indicates that the cost to go from 30% (current level) to 100% in FY15 would be
$169,743.
The Committee recommended (2-0, Councilmember Floreen temporarily absent): enact Bill 9-14
as introduced.
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This packet contains:
Bil19-14
Legislative Request Report
OMB and Finance Memo
County Executive testimony
Councilmember Berliner memo
Fiscal and economic impact statements
Circle
#
1
3
4
5
6
10
F:\LAW\BILLS\1409 Renewable Energy-County Purchase\Action Memo.Doc
2
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Bill No.
9-14
Concerning: Environmental Sustainabilitv
- Renewable Energy - County
Purchase
Revised:
1/9/2014
Draft No.
1
Introduced:
January
28, 2014
Expires:
July
28, 2015
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
--'-"N""'on~e<_..~:___---_
Ch. _ _,
Laws
of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmember Berliner, Council Vice President Leventhal, and Councilmembers Floreen,
Riemer, Andrews, and Navarro
AN
ACT to:
(1)
(2)
(3)
require that at least 50% of the County's electric power usage be supplied with
renewable energy by Fiscal Year 2015;
require that 100% of the County's electric power usage be supplied with renewable
energy by Fiscal Year 2020; and
generally amend County law on environmental sustainability.
By adding
Montgomery County Code
Chapter 18A, Environmental Sustainability
Section 18A-llA
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * ..
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No.
9-14
1
2
Sec.
1.
Section 18A-IIA is added
~s
follows:
18A-IIA.
Renewable Energy.
3
4
5
6
7
ill
Purchase gfrenewable energy.
ill
The County Executive
must assure that at least 50% of the
County's total annual electric power usage will be supplied
Qy
renewable energy, beginning in Fiscal Year 2015.
ill
The County Executive must assure that 100% of the County's
total annual electric power usage will be supplied
Qy
renewable
energy, beginning in Fiscal Year 2020.
8
9
10
11
®
Criteria for renewable energy purchases.
purchased under subsection
ill
must:
The renewable energy
12
13
ill
be generated from an energy source defined as
~
Tier
1
renewable
source in Section 7-701 of the Public Utilities Article of the
Maryland Code or any successor provision;
14
15
16
ru
qualify as green power as defined
Qy
the United States
Environmental Protection Agency;
17
18
19
ill
not
be
included in
~
supplier's renewable portfolio standard
requirement for any year or supplant clean energy purchased to
comply with either federal law or the law of states other than
Maryland; and
20
21
22
ill
be registered and tracked in
~
regional tracking system.
W
On-site clean energy generation.
The County may satisfy the
requirement of subsection
ill
through on-site clean energy generation.
The County must retain ownership of each on-site project's renewable
energy certificates and must meet all other requirements of this Section.
The County may exchange the renewable energy certificates for
certificates from an alternate source that complies with this Section.
23
24
25
26
27
@
f:\law\bills\1409 renewable energy-county purchase\bilI1.doc
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LEGISLATIVE REQUEST REPORT
Bill 9-14
Environmental Sustainability
-
Renewable Energy
-
County Purchase
DESCRIPTION:
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Would require 50% of the County's electric power usage be supplied
with renewable energy by Fiscal Year 2015 and 100% by 2020.
The County has low standards for the use of renewable electric
supplies.
To eventually make the County's power supply entirely from
renewable sources.
Department of General Services, Office of Management and Budget,
Department of Environmental Protection
To be requested.
To be requested.
To be requested.
To be researched.
Amanda Mihill, 240-777-7815
To be researched.
Not applicable.
F:\LAW\BILLS\J 409 Renewable Energy-County Purchase\LEGISLATIVE REQUEST REPORT.
Doc
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ROCKVltLE, .MARYIAND
MEMORANDUM
I<'cbruary 5,
2014
TO:
FROM:
SUBJECTS:
Jennifer
A.
es
Joseph F.
Bbc
I,
\.J
ice
of Management and Budget
epartment of Finance
Bill 2-14, Environrnct\tal Sustainability - Buildings -- Benchmarking
Bill 3-14, Buildings -. Energy Efficiency - Energy Standards
Bill 4-14. Street and Roads .... County Street Lights
Bill 5-14, Environmental Sustainability·- Social Cost of Carbon Assessments
Bill 6-14, Environmental Sustainability - Office of Sustainability - Established
Bill 7-14, Contracts and Procurement - Certified
GR'erJ
Business
Program
Bill 8-14, Buildings - County Buildings -- Clean Energy Rene\.vahle Technology
Bill 9- I4, Env ironmenta 1 Sustainability - Renewable Energy - County Purchase
Bill 10-
J
4, Buildings Solar Permits Expedited Review
Bill 11 14,
Buildings .... Electric
Vehicle
Charging Station Permits --
Expedited
Review
As required
by
Section 2-81;\ ofthe County Code, we are infimning you that transmittal of
the
fiscal
and economic impact statements for the above referenced legislation will
be
delayed
because more time is needed to coordinate with the affected departments, collect information, and
complete our analysis of the fiscal and economic impacts. While we are not able to conduct the
required detailed analyses at this time, it is clear that a number of these bills could have significant
fiscal impacts.
Due to this year's heavy workload on Executive
branch
staff in developing both a full capital
budget and an operating budget, !.he fiscal and
economic
statements
will
be
transmitted
after March
17,2014.
JAH:fz
cc: Bonnie Kirkland, Assistant Chief Administrative Officer
Lisa Austin, Offices of the County Executive
Joy Nunni, Special Assistant to the County Executive
Patrick Lacefield, Director, Public Information Office
Marc P. Hansen, Office of the County Attorney
Robert Hagedoorn,
. Department of Finance
David Platt. Department of Finance
Alex Espinosa, Office of Management and Budget
Mary Beck, Office of Management and Budget
Nacem
Mia.
Oftice
of Management and Budget
Felicia Zhang, Office of Management and Budget
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TESTIMONY ON BEHALF OF COUNTY EXECUTIVE ISIAH LEGGETT
ON ENVIRONMENTAL AND SUSTAINABILITY PACKAGE
Bills 2-14, 3-14, 4-14, 5-14,6-14,7-14,8-14,9-14, 10-14, 11-14, 12-14
February 11,2014
Good evening Council President Rice and members of the County Council. My name is Bonnie
Kirkland and I am pleased to be here on behalf of County Executive Isiah Leggett to testify on
the package of environmental and sustainability measures introduced on February 4, 2014 by
Councilmember Berliner and others.
Mr.
Leggett supports Councilmember Berliner's initiative
and the Council's efforts to address the need for more sustainable development in Montgomery
County. Following up on recommendations from the Sustainability Workgroup, this package of
renewable energy, energy efficiency and sustainability measures will take the County to the next
level of environmental excellence.
Sustainable· development has been defined as meeting the needs of the present without
compromising the ability· of future generations to meet their own needs.
l
The path forward
requires understanding and planning: understanding how existing buildings peiform and how
planned buildings are expected to ped'oim; and clesigmug buildings and other infrastructure that
reduce materials consumption, reuse materials, reduce energy consumption and maximize the
use ofrenewable resources.
County Executive Leggett recognizes that the path forward will involve substantial change and
commitment on the part of both the public sector and the private sector. He is committed to
working with the Council on this package during the coming weeks to develop the most
progressive and reasonable legislation achievable that will balance both the compelling need to
achieve sustainable developmerit aild the budgetary realities faced by the County and our local
businesses to fully implement the approved changes the legislative package requires.
Stewardship for future generations has been a cornerstone of
Mr.
Leggett's Smart Growth
Initiative in terms of planning for future growth at appropriate transit oriented locations. The
County Executive applauds Councilmember Berliner's and the sponsoring council members'
vision and recognition of the need for stewardship of our precious resources for future
generations.
1
International Institute for Sustainable Development quoting from the World Commission on Environment and
Developm~nt
(WCED}.
Our common future.
Oxford: Oxford University Press, 1987 p. 43.
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MONTGOMERY COUNTY
COUNm
RoCtv.u.u.
~...:~n.AND.
ROOEIt;
BHRt.fNl:R
CO'VNC ILMutfUik
DtSTRtC't I
CHAlRM,AN
TRAJIISPORTAilQN.
JNFltAnllUcroalt
Et<£ROY
&:
ENVl1l0ltM~'t
COMMITTEE
January
14.
2014
Dear
Colleagues.
Next
week
I will
befutrod.u.clng
a package of
i3energyico\>itotmle
;ntaJ
~
that
are
designed
to
ensqre that
MQntgoinery
COunty
~
at
the.:suminalillity
forefront.
I wauldbe
pleasedlO
have)'oucospo,nsor some or,.n
ofthese~&.
These
ineaSU.resfoous w.renewable ene,rgy,
~gy
dficient:Yt
trwpOrtatill1'4
and
govemmeqt
ac~~
I
have attBchedafact
sh~
that
gives •
~rf.et
Qeserim!oJij
or
each
of them. and
of
course wOuld
be
happyio di$Cuss
any
ofthem
in
~
detail
should,
you
have
questions.
I
was
inspired
by
our Counci!"s
~ision
to
assert
its
leadetSbipin
the
context of
redUQing
~
gap
iri
income
di$parities
by
passing
a
local.
iriinimunl
wag~
law.
11lUnk
~U
orus appreciate
that the,fedem
~ent
has
beeome
~o
clysfbnctional that
we
can
expect
little
progress
on many oftht!.issues
'w:c
care
deqlly
abwt.
Ind.~ ~e ~
of
Brooking;srecenilydCscribed
the
~govemmcnt
asa
~
health insurance .
company
With
manny."
Hi$~,
which,I
~
istbat our- govcming
paradigm
has
shifted
£rom
aJop
doWo~
by
the
~
govemmem: tOa
bottom
up
Jed
by
local
govemmentt Uke
0I,ltS.
I
5afall
Qithis.~ we~'
to.
00
more
ifwe
~
toaddressclimtlte
chang~
It
is:
obvioUSly oot
a hoax
a11£hve
know
what
we need
((lQO
~o
address
it.
We
need
to' use
k$seneqa tm4.clei1ner
eneTgy~
Period...
1'1D$.packag¢
ofbills
is
taken
in
many
i~c;~
tfotnwha:t'otber
lead1naiurisdidionsarc
doiDg.-
from
Chicago
to
~e
to
California
~
New York
states.
Tbey>ate
a
mo!
leading
b):
exampi4.
rewardlnll~
busitlesses.supporthtg
mftl'ket~. ~doptingmote
en.c;tibgstali.&mis,
and
ho.tding
om
county
,government
atxiOunt.ability.
Holding ourselves
accounUlhle
is
important. Wh,an
the
Council passed a.similar
package
in
2008~
we
tasked
a
Stlstciinability Working
Group
with
the
~ipIe
responsibilityf'or
gujding
our
County
to
achi~
OW'
fonn~gQal
of
~ng gr~use
~
emissions
by SO
'percent
by
2050.
Itis time
flOW
to
make.
thi$
a
core
SQver:nment
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Sustainability WithlnDEP whose
priilcipal
responsibility" Will betiimonUot
how
we are
doing
and to
help
develop
the
pollci¢$an4
pnteuees
~ ~ill ~
us
tQ
"'~
we
need
to
be. ..
.
responsibility~
and
this
packag~:i.ncl~·ameasure.that
:wilfcreateanOffi<:;e
Qf:
1hOpe
you.win
i()in
me
in
malcing
$tU"e
MontgGmer.y County burnishes
its
reputation as a community
that
embracessustairtability
at our.cate..
Sine.erely,.
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.FACT$1i£n ON
COUNOLMEM8ER BERUNER'S13 gNERGY/ENVIRONMENT LEGISlATIvE
INITIATiveS
fnf~~(iure1 ~n~rgy·&.£~ronmetJt:cQlJfrnitte.l will~·lntro.ducing 13e~r;gyNnyit~nme.ntii[
measures on
January
2:1..
me
measures
ate,designed
to.·undertscOte:~ndsuppprt
the.to.untv's
~.mitmenttQ .sl.l~ln~hirttv
anti
wQuld
(li
promote
:tn~~~ ~net.sY eff.I~q~
(ll
In~re~Se;
itSe
of
renewable energy'; (3)
decr~ase,tOi'I$Umption
'of
gasOline
and.support efectrit
Y.etiJetes;.
and. '(4)
cr.eati!·
more
aC;04nmbillty
~:"d
respoQSlbiiitywfthlA toUrrl:Ygovernmellt
for
~t:hi~ing th~
Co:unty's
gOarof
red'uti.hggreenhouse
gas
emissiGnS 80CJ{.bY
2050~BeJow
;sa
brid
deseriptlon
of
each ofthes!'
me8:$ure.s:
CoUndlm~ber
Roger Berliner
(D~l)t
Chait
antle
MorttgomeryCounty
rransporta:tit)n
l
• &tnewabfft
Eneow
'p~ing
.
...,50%
Renew§lesbv'Z015i
100%1>1
20io:-
T9da:lj the
COunty p'Urchases
approXimate]y
3096.oHtsenergyftom
renewable: energy
resources.
washington;~;
AuSi;in,
Te~; alidPortiaricJ~ bregon~
alfeady at
~l009i,renew~ble
ene~
.
•:ReneW8bles Oosite - This
biU,
modeled afttt
a,recertt/ypasse~fiawili
Prince
GeOrge's
County,
wouJd
r~q~ke
!1e'Nqr exten,$lyeJy
r:emCl~eJed Col!ritybYnqIOgs,~o
geneta,te:atlef!st
1 kilowatt
of
renewableeMtSY
fOrevety
1,.000 Squ.are feet
of
floor area.
• Greentaping
SOlar:"'"
TWo
of
the:
l~imenl$tQ iritrea~ Solarut1fl~tio"
arettie
cOsta~
time. ii1volv.edin
;gettingpermits.
Thismeasu~
pattemedattei.a·$O<Xf!sSfUl
program
in
Chl~gQ~
req'i:!Jres
o~t ~'partn,1e"t
of
P~rr:n~il1g$e'nlic;es,t6 pevf$e;~h exP.¢dit~(I al!~.I¢Ss:
costly proCESS
for
solar
re.lateclpermits.
• Solar
Z@ningAc£omi'riodatioo.-Current
se.tback: requirements
linilt the
lise of solar
In
re~fQenti'ilt~weUings. Thi~trAwoutd
.mod,est1y;m,ernt<JUf'Z:gninglaws.to
perm.t
sol~r
tq
eXtend
lfeet
into
the side
otrearsematk.
Energy Efficlensx
• BenChmarking
'Buildingt-
This legislation, modeled after
.taWs
in New York,
Chitagol
and
the
District
of
CQfumb~,
would
reg~ire
Ql)lldlngowI'ers
to
measuretile
energy
effideno.lQf
their bulldings,; make
that
infOrMation public;
and fieiiodicallyc6inmit
to>ensUringlhaf
their
e~rgy
.ffacie.n<;y
eq~ipm.en~,~
working
prop~rly,
It,'is
dest&n~
tq
wqrk
WIth.
~ r~~tly
pasSed PACE
ptogtamto;-cteatemaftet
based
ineenfivesfurbuifdihgOWtleiS
to
ihcrease
the
efflcjencyoftheir buildings•.
InrormatiPnpfOvidedw(W,ld aid
tenantS
inforeqlStlng
fut4fe..
utiUty
costs.
• Silver lEEDfOt
NeW
Sliildings-CUrrent.countylaw requires
newcommereial
buildings
to
be
LIED
certifled.
while
county l,uildings l'Jlu$tmee.t
~hemffre ~fonmef1tally
$trjngent
S.U\l~r
standard.
This
bill
would requirealt new
.commercial buildings
to
meet Silver LEED.
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:ig:,st
of
carbon -- The. use
.ofc~~ntionaJ
tuell.
pal'ticularlvcoal,
exttactsa (:1)$t;on
$Odety.
that
1$
not reflected
hi
itS
priCe;
TheSe
wextetn~IN
'cOsts
:shQYI~·
be::
fagoreq·inw
ttt4
.
eost/b.eflefit
~lw.:f~ti~
tbatthe'
a.runtv
\.ttltiz~vihen
it asseSS6.the· potentiaJ for energy
efficJenty
'ImproV~ents.
This bill wOUld
require·~.Q>.~n.tyl(l~
EPA's
4~ic~
of
carbonA!
~ICuJa.tJof\
or
aromparabl~
methodology
fortnQse
purpo~s:.
•. bEl)
Streetyghting....
ttis
generally recognized
that
LED
·liBhtrngisfar
rnqre
~Mrgy effid~nt·
artd req.uiteSfal'
lessma~i1.~nce.
This.
bill
wqukl
requiA!
OOT.,
~pon
the
~)(pk:ation
of
its
c.Ut:rellt
~ntrattfOr.streeHJgbtin&
to
c()f1tract~h
an LEO
company.
EYlnfrastructu[~
- EletttltVehiddwiIJ
ohtybecome mainstr,eam
whe.O.
fhe~ar.e SJ,lfflc~~.
charSlng.st:ati6nst~
inspire
conf1deo~ i~ t~e. pvbJ,it:~
taltforni,a recent",
passed
legislation
lequfrihg
a.tnew
b.qtiQing$
~j:1r
acertafi'uizeto
be<tEV
ready."
This
tTA
WoUld
req(dre all
·new;buUding$ to install.1
EVchatglng·~tJOp
for·eviWSO·paddng
$P~$.
.
EVclta.rglng
stations can be
subjettto
a
~ngt;hy
and
costJV
p;ermittingpr.ocess.
lbis'biU
W6ufdreq~lr~DPs
to
inStitute
jln .
expedited and
r~$S
costly
perrfUtUog.p.r~e$$.
..
...
juriSd~ctionSi
induding
fairta~~veJn.~~e~fgnitK:antlv
more
progfe$~:in
estabJisfdng
tek!WOrklflggOilJsaod~etingthem~
·ThislegislationWould
reqUire
th~iCOlihty Ex~tftJve
th
pubUsfrregulatlor'ls that:setfottha
de.finitjVet~lewQrkJnSPQliw a~
a
f~q~treiMnt
to
designatea.
tel~mrra~tiolmaJ'la~er.
.
.
Gr~ntaQingEYstatiOn$.-Just'a$.
in·sotadnstallationsi
• Telewgrking -:-"
TeleworkingB
becoming
far
mot'(fcomfurin
afidatcepted.
Other
..
Goyernment
lncentive§&
ActOl.lntabiH1¥
~Qrftate
an
Offlce
ofSustafnabilitY
within
DEP-:-·Thi~'.blllw.otddtreate
.,·newQffice
of
~ina.bmtY
wM.in
OEP•.
\Nh~n'theCQu.ncl1passed tegi$lati~n
irf2Q08",iitta$ki!d
a
S~ainabm1;Y
Working Group
with
the respQfisibility
of
pidirig
out
Co~W's greenho~f!
gas.
tedu~oil
implementation.
it
ts;nowtlme
to
m~kettH$
af\JndamelltalresPOnsibmty
oftne,
Cuunty:govemmentart'dtohoklautsetvesaceoontable.
Ii
Ctl\irlWGreenC'i!rtifledBusifles'SeS-
The
CQul\W has
t:re~d'
a
program
~
a
fo~1
QUstne;$$
c;anbe
"~n c~rtif~
byadoptfnggood
$ustalnat>Jepract~s.
This
bill.
talis
upon the
County EX!cutwetb
tssUe~i.datiotls
thiiit
wold~8iVea' p'refeffln~tn Cf)nti:a:~rtg
to
loca'l)us1rie$se$thataregr~en
certified.
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ROCKVILLE, MARYLAND
MEMORANDUM
Aprilll,2014
TO:
FROM:
Craig Rice, President, County Council
~
Jennifer A. Hughes, Director, Office of Mana e ent
Joseph F. Beach, Director, Department ofFi
. udget
SUBJECT:
Council Bill 9-14, Environmental Sustainability- Renewable Energy - County
Purchase
Please find attached the fiscal and economic impact statements for the above­
referenced legislation.
JAH:fz
cc: Bonnie Kirkland, Assistant Chief Administrative Officer
Lisa Austin, Offices of the County Executive
Joy Nurmi, Special Assistant to the County Executive
Patrick Lacefield, Director, Pnblic Information Office
Joseph F. Beach, Director, Department of Finance
Michael Coveyou, Department of Finance
David Platt, Department ofFinance
Robert Hagedoorn, Department of Finance
David Dise, Director, Department of General Services
Greg Ossont, Department of General Services
Erika Lopez-Finn, Office of Management and Budget
Alex Espinosa, Office of Management and Budget
Felicia Zhang, Office of Management and Budget
Naeem Mia, Office of Management and Budget
~
...
-
.....
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Fiscal Impact Statement
Council
Bill 9-14
Environmental
Sustain ability
- Renewable Energy
-
County Purchase
1.
Legislative Summary.
The legislation requires that at least 50% of County annual electric power usage be
supplied by renewable energy starting in FY15. and up to 100% by FY20. Renewable
energy purchased must meet the requirements of a Maryland Tier 1
rene~able
energy .
source (e.g., wind, solar), qualifY as green power as defined by the Environmental
Protection Agency (EPA), and
be
registered and tracked in a regional tracking system.
2.
An
estimate of changes in County revenues and expenditures regardless of whether the
revenues or expenditures are assumed in the recommended or approved budget. Includes
source of information, assumptions, and methodologies used.
The.1egislation does not change County revenues.
The legislation would expand the County's existing clean energy purchasing efforts from
the current level of 30% of annual electricity use to 50% by FY15 and 100% by FY20.
The County currently meets this requirement by purchasing renewable energy certificates
(RECs) which are a traded and independently verified commodity representing the
environmental attributes of clean energy. The cost ofRECs is always in addition to the
cost of electricity supply.
The legislation would require an increase in the FYl5 Recommended Budget (Utilities
Non Departmental Account) of$48,498, assuming 50% clean energy purchasing, or
$169,743, assuming 100% clean energy purchasing. Additional staff time would be
needed to execute and monitor the program, approximately 25% of a grade 23 Program
Manager position at an estimated cost of$22,831.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
Additional Cost Above Recommended FY15 Budget for Clean Energy Purchases ($73,000)
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,....stlmated
Additional Cost Above
30%
Base
FY15
~lean
EnerllY
%
Nationally Sourced
FY16
$48,489
$48,489
$59,109
$78,812
$206,881
$275,842
iFY17
$69,3U
$118,832
$242,615
$415,911
~18
IFY19
FYZO
$90,051
$100,577
$241,385
$352,020
$844,847
Total
$447,185
$826,999
$1,565,154
$2,894,496
500/"
!Base
$79,632
$139,357
$278,714
$487,750
Market
Trend
100'7'«
Base
$200,115
$365,209
$700,403
$169,743
$169,743,
Market
Trend
1
Assumptions:
• Assumes a 0.05% increase in annual electricity consumption.
• The Base scenario assumes the current REC cost of$1.50 and escalates $0.25 per
year through 2020 for the 30%, 50%, and 100% purchasing options.
• The Market Trend scenario for REC cost
begins
at $1.50 and escalates
to
$6 by
FY20.
It
is consistent with market trends for the last 8 years tracked by the U.S.
Department of Energy.
• Includes REC, or the renewable attribute only. and is reflected as a premium over the
cost of conventional electricity.
4.
An
actuarial analysis through the entire amortization period for each bill that would affect
retiree pension or group insurance costs.
This legislation does not affect pension or group insurance costs.
5. Later actions that may affect future revenue and expenditures
if
the bill authorizes future
spending.
The legislation does not authorize future spending.
6.
An
estimate ofthe staff time needed to implement the bill.
The staff time needed to expand the program is expected to be less than one FTE
(approximately 25%) for a grade 23 Program Manager. The staff resources required
under Bill
6~
14 could implement this legislation. Staff costs are estimated at $22,831
including benefits.
7.
An
explanation ofhow the addition of new stafi'responsibilities would affect other duties.
Existing staff would have to reprioritize other duties in order to comply with this
legislation.
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8. An estimate of costs when an additional appropriation is needed.
Assuming 50% clean energy purchasing and additional staff time, an added appropriation
of$71,329 would be needed for FY15 budget. Assuming 100% clean energy purchasing
and stafftime, an additional appropriation of $192,574 would be needed to implement
this bill.
9. A description of any variable that could affect revenue and cost estimates.
Projected costs are based on the target amount of clean energy required (as a percentage
of electricity consumption), changes in the total electricity consumption for County
facilities, the renewable energy attributes desired, and the commodity cost of the REC.
The County's current REC purchases specifies national RECs from sources equivalent to
Maryland Tier I; if this definition is changed, the cost ofthe commodity will vary and
most likely increase.
RECs are a volatile comnlodity. Pricing is currently low, but over
the
last ten years REC
prices have varied over 600% for the same product.
10. Ranges of revenue or expenditures that are uncertain or difficult to project.
See question 3.
11. If a bill is likely to have no fiscal impact, why that is the case.
Not applicable.
12. Other fiscal impacts or comments.
None
l3.
The following contributed to and concurred with this analysis:
Eric Coffinan, Department of General Services;
Angela Dizelos, Department of General Services;
Erika Lopez-Finn, Office of Management and Budget
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Economic Impact Statement
Bill 9-14, Environmental Sustainability - Renewable Energy - County Purchase
Background:
This legislation would require that at least fifty percent (50%) of the County's elec1ric
power usage be supplied with renewable energy by fiscal year (FY) 2015 and one
hOOdred percent (100%) by FY2020.
1. The
~ources
of information, assumptions, and methodologies used.
The Department of General Services estimates that it would cost the County an
additional $75,000 in FY2015 and between $480,000
to
$1.114 million by FY2020 to
implement this Bill. These data are based on a 0.05 percent increase in energy
consumption per year and a base "renewable energy certificate
(REC)"
cost of $1.50
in FY201 5 and an additional $0.25 per year through FY2020 above the cost of
conventional elec1ricity.
The Department of Finance assUmes that public utilities currently have installed
generating capacity to meet the increase in the County's demand for renewable
energy.
2. A description of any variable that could affect the economic impact estimates.
The Department of Finance assumes that the County will follow its current practice of
purchasing national renewable energy certificates. These certificates originate from
renewable energy projects across the Country and it is uncertain what local impact
would result. However, because of the increase in Montgomery County Government
spending (MCG), such increase could be offset by reductions in other MCG programs
or increased
tax
revenues. What programs could be affected is uncertain at this time.
3. The Bill's positive or negative effect,
if
any on employment, spending, saving,
investment, incomes, and property values
in
the County.
Because of the assumption in paragraph #1, Bill 9-14 will no have direct economic
impact on employment, investment, saving, and property values in the County.
However, without data on what County programs or
tax
revenues may be affected by
the increase in spending for renewable energy,
it
is uncertain whether Bil19-14 will
have an impact on incomes.
4.
If
a Bill
is
likely to have no economic impact, why is that the case?
Please see paragraph #3.
5. The following contributed to or concurred with this analysis:
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Economic Impact Statement
Bill 9-14,
Environmental Sustainability - Renewable Energy - County Purchase
David Platt and Rob
Hagedoo~
Department of Finance
Eric Coffinan, Department of General Services
+-1-li
Date
Department ofFinance
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