HomeMy WebLinkAboutSupport of a Reasonable Transition to Cleaner Sources of Energy for South BendAttest:
RESOLUTION
No. 4578 -16
Passed by the Common Council of the City of South Bend, Indiana
September 12, 20 16
Presented by me to the Mayor of the City of South Bend, Indiana
September 13, 20 16.
City Clerk
President of Common Council
City Clerk
Approved and signed by me / e1'' �'`�� I +� 20 �O .
Mayor
SUBSTITUTE Resolution No. 16 -57
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA
IN SUPPORT OF A REASONABLE TRANSITION TO CLEANER SOURCES OF ENERGY FOR SOUTH
BEND
Whereas, South Bend is experiencing fast - growing interest in cleaner sources of energy, such as lower - carbon
and distributed generation as well as energy efficiency; and
Whereas, South Bend's residents, businesses, non - profits, and anchor institutions, including city government;
have increased investments in efficiency projects and renewable energy installations; and
Whereas, the City of South Bend has a concerted interest in the financial, physical, and social wellbeing of its
citizens and businesses; and
Whereas the City of South Bend is interested in exploring cleaner energy's potential to add local jobs, reduce
energy bills, and reduce pollution in a manner that preserves reliability and affordability; and
Whereas, the City of South Bend recognizes that energy issues are impacted by a complex system of federal and
state policies as well as local utility operations;
Now, therefore, be it resolved by the Common Council of the City of South Bend, Indiana, as follows:
Section 1. The Common Council encourages Indiana Michigan Power and the State of Indiana, including the
Indiana State Legislature, the Indiana Utility Regulatory Commission, and the Indiana Office of Energy
Development, to reduce dependence on coal -based power as expeditiously and cost - effectively as possible via
investment in lower - carbon and distributed generation and demand -side management, in a manner that provides
long -term affordability and reliability for South Bend ratepayers and responsibly stewards ratepayer investments.
Section II. The Common Council offers a number of suggested measures in the attached Exhibit, and
encourages their consideration and evaluation by the afore - mentioned bodies.
Section III. The Office of the City Clerk shall send a copy of this Resolution, following Common Council
disposition, to Indiana Michigan Power Company, the Indiana Office of the Utility Consumer Counselor, the
Indiana Utility Regulatory Commission, the Indiana Office of Energy Development, the Indiana Department of
Environmental Quality, and the State senators and representatives currently in office, as well as the Sierra Club
state and South Bend chapters. Additionally, the Office of the City Clerk shall send a copy of this resolution to
officials newly - installed in January 2017 at the above agencies by February 2017.
Section IV. This Resolution shall be in full force and effect from and after its adoption by the Common Council
and approval by the Mayor.
Counc Member Oli er J. Davis, 6t' ITistrict
Council Vice - President,
Vice- ' Utilities Committee
Varner, 5"' District
Utilities
l
Council Member Tim Scott, 1St District
Council President
o ci ember at Large Gavin Ferlic
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Filed in Clerk's Office
SEP 07 2016
KAREEMAH FOWLER
CITY CLERK, SOUTH BEND, IN
Exhibit
A. Cleaner Energy in South Bend
Significant momentum towards cleaner energy has been developing in South Bend. For example:
• Solar photovoltaic panels have been installed with grant funds at the South Bend Century Center, South
Bend Mutual Homes and Near Northwest Neighborhood.'
• At least six faith communities in South Bend have installed or are planning to install solar panels with
grant funds to reduce their energy costs and better care for the Earth, including the First United
Methodist Church, Islamic Society of Michiana, Kern Road Mennonite Church, Olivet AME Church, St.
Anthony de Padua Catholic Church and First Unitarian Church.2
• Rev. John I. Jenkins, C.S.C., president of the University of Notre Dame, announced on September 21,
2015, that the University will cease burning coal entirely within five years by relying on energy
efficiency, renewable energy, geothermal, and lower- carbon natural gas, and will cut its carbon footprint
by more than half by 2030.3
• The South Bend Century Center expects to save $1.5 million over 15 years by installing solar panels,
LED lighting, energy efficient heating and cooling systems, and a cool roof 4
• Inovateus Solar has grown from a local start-up company to a "Top 100" solar installer, still based here
in South Bend, with over 200 megawatts (MW) installed around the world.5
B. Impacts o f High Utility Costs
Council recognizes that utility costs can be a burden to many families, including the 27.8 %6 of South Bend
residents that live at or below the poverty line. For example, Real Services provided winter heating assistance to
9,432 families and summer cooling assistance to 9,202 families in its Northern Indiana service area in 2015.
South Bend currently enjoys low electricity rates but costs are expected to increase for several reasons, one
being our utility's need to invest in pollution controls and other infrastructure improvements.
Council sees potential for local investments in demand -side management (including energy efficiency) and
distributed generation (including renewable energy), to benefit the South Bend economy while reducing energy
use and making it easier for residents to afford their electric bills. 8,9
C. I &M Progress on Clean Energy and Stakeholder Engagement
' http:// www .iaced.org /wp- content/uploads/ 2015 /07/ South - Bend - SUN - Solar- Awards.pdf
Z http:/ /www.southbendtribune.com / news /local/ south - bend - congregations- turn - skyward -to- conserve - energy /article 732c968d -b43f-
59ae- babd- ac8e079ebbaa.htm1
3 http: / /news.nd.edu/ news /61083- notre- dame - goal -no -coal/
4 https:Hdowntownsouthbend.com /century- center - surges- ahead - multi - million - dollar - energy- savings - project
5 http:/ /www.solarpowerworldonline.com/ 2016 - top- 500 - north - american- solar - contractors/
6 US Census Bureau American Community Survey, http: / /www. census. gov/ cluickfacts /table/[PE120214/1871000
7 https: / /www.realservices.org/ wp /wp- content/uploads/ 2016 /04 /2015- Northem- Indiana.odf (page 11)
8 http: / /energy.gov/ sites /prod /files /2016 /05 /f31 /Factsheet -EE Savings and Benefits.pdf
9 http: / /www.thesolarfoundation.org /national/
South Bend's electricity comes from a fuel mix that includes renewables such as wind, hydropower, and solar,
as well as nuclear; South Bend's electric utility, Indiana Michigan Power (I &M) has begun installing utility -
owned solar projects totaling 15 megawatts,10 and plans to add 600 megawatts of solar and 1,350 megawatts of
wind by 2035.
I &M also offers commercial and residential efficiency incentives — including programs that support low- income
households and small business, educational resources including web, social media, in- store, and in- school
programs, energy- savings kits, and an opportunity for customers to financially contribute to I &M solar projects.
I &M also supports quality of life and economic development initiatives such as the "Light Up South Bend"
program, infrastructure needed for development, and funding for community programs and events.
I &M has expanded communications and transparency based on stakeholder feedback and includes stakeholders
in resource and efficiency planning processes.
D. Elsewhere in Our Region
Communities and utilities throughout the state are partnering to invest in green technology programs that
benefit Indiana and have resulted in Indianapolis becoming the second - ranked large metropolitan area in the
nation for solar power capacity per capita, second only to Honolulu, Hawaii."
Although South Bend enjoys a number of demand -side management and distributed generation programs
through I &M, investor- and customer -owned utilities in northern Indiana and southwest Michigan offer their
customers additional opportunities to reduce energy bills and increase energy independence, such as:
• Northern Indiana Public Service Co [Indiana] offers to purchase renewable energy from customers for
between $0.15 and $0.25/kWh through a program that is creating 35 megawatts of solar, wind and other
local energy in Northwest Indiana;' 2,13 provides free electric vehicle charging and incentives for
installing EV charging stations. 14
• Consumers Energy [Michigan] offers to purchase renewable energy from customers for between $0.20
and $0.25/kWh15 and provides rebates for commercial and residential building envelope improvements,
and a number of whole - building, new construction, and employee training incentives. 16 Consumers
offers LED street lights for customer- and company -owned systems. 17
• Indiana Michigan Power [Michigan] offers electric vehicle /energy storage off -peak rates, as well as
LED street lighting rates.
to https: / /www.indianamichiganpower.com/ info / news /viewRelease.aspx ?releaselD =1695
11 http: / /wishtv.com/ 2015 /05 /27 /f`orbes- indy -is- 2nd - best -city- for - solar - power/
12 https: / /www.nipsco.com/ our - services / renewable - energy- promects/feed -in- tariff - program
13 https: / /www.nipsco.com/ our - services /renewable - energy - protects /feed -in- tariff - program
14 https: / /www.nipsco.com/ our - services /in- charge- electric- vehicle - program
is https: / /www.consumersenergy .com /content.aspx ?id =4847
16 https: / /www.consumersenergy .com /eeprograms /BHome.aspx ?id =4100
17 https: / /www.consumersenergy .com /content.aspx ?id =3768
4
• Midwest Cooperative [Michigan] offers LED street lighting rates that reflect lower energy use and
higher up -front costs.
• Area REMCs- Members of Wabash Valley Power Association [Indiana] offer efficiency incentives for
schools and farms, and new - construction programs.
E. Coal - fined Generation
Although we have seen significant improvement in the quality of our air in the past several decades, generation
of coal power does still negatively impact human health and air quality and land and water resources. U.S. EPA
measurement protocols identified significant greenhouse gases and toxins from Indiana's coal -fired power
plants when compared to other generation facilities, both coal -fired and non -coal. 18,19
The U.S. and Indiana are currently in a period of uncertainty where regulatory action, such as the Clean Power
Plan or potential carbon caps, and market forces, such as instability in the mining industry, increase the
financial and operational risks of burning coal. We also understand that some coal burned in Indiana power
plants is imported from out -of- state.
F. Turning Point for I&M and its Customers in South Bend
Council recognizes that I &M is legally required to provide reliable and affordable electricity to customers while
balancing demands of shareholders, federal and state regulators, and federal and state lawmakers, adapting to
regulatory uncertainty, and managing ageing infrastructure and significant past investments.
I &M is continually reviewing its generating facilities to produce affordable, reliable and cleaner energy to its
customers — including the 2015 retirement of its Tanners Creek coal - fueled plant that was capable of generating
995 megawatts of electricity.
Such a review, held in 2015 with public input, included an analysis of options to phase out large portions of its
coal generation capacity and replace it with other forms of energy, including renewable sources. According to
I &M's integrated resource plan (IRP), partially replacing coal generation with lower- emissions options such as
wind, solar, or natural gas could be less expensive than I &M's preferred plan which continues to utilize all
current coal -fired assets, 20 requiring the addition of $3 billion in pollution controls.
Industry studies suggest that investments in demand -side management are more cost - effective than investments
in traditional generation capacity"', however the proposed IRP indicates only 2% of system capacity will be
provided by energy efficiency and I &M's investment in its efficiency programs will remain at current levels. 22
18 https: / /iaspub.epa.gov /triexplorer /tri release.facility
19 https : / /gh-qdata.epa.4ov /gh- p /main.do
20 https: / /drive.google.com /file /d /0B37orMi -Cq JWmlBeEdgTldTRFk /view ?usp = sharing
21 http: / /in.gov /iurc/files /ACEEE Attachment G ACEEE Cost of Saved Energy Report.pdf
22 Indiana Michigan Power. (November 2, 2015). Integrated Resource Planning Report to the Indiana Utility Regulatory Commission
(Pg. 130, Pg. 50).
Increased investment in distributed generation and demand -side management in South Bend has potential to
create a significant clean energy industry, providing quality local jobs and driving cutting -edge technology.
Reducing the cost and volatility of utility bills through demand -side management and customer -owned
renewable energy would directly improve financial stability for ratepayers in South Bend and hedge against
future rate increases.
I &M has demonstrated openness to public input in determining the most appropriate long -term solutions for
reducing carbon emissions, providing reliable electricity at an affordable cost and promoting economic
development in the communities it serves. South Bend considers itself a City of innovation and invites our
industries, including I &M, to aggressively pursue new technologies, policies, and programs that increase the
attractiveness and affordability of locating in South Bend and ensure long -term financial, social, and
environmental well -being of our shared community.
South Bend residents are subject to the policies of the State of Indiana as well as the programs of the regulated
investor -owned utility that services the legally - determined territory that includes South Bend. However, I &M
and this Council share many common goals. Therefore, the Council offers some measures for evaluation that
could support South Bend's efforts to use cleaner energy and reduce costs. Acknowledging the complexity of
utility systems, the Council includes suggestions for State agencies and lawmakers as well.
Section I. Utilities - The Council encourages I &M to consider the following policies, programs and
opportunities:
Continue to invest in utility -scale renewable energy and increase efforts to identify locations in
South Bend and nearby communities to invest in local low - emissions generation options.
2. Seek opportunities to make interconnection processes for customer -owned renewable energy and
energy storage systems more user - friendly.
3. Support the creation of local jobs through investments in demand management, energy efficiency,
energy storage, and wind, hydro, and solar power.
4. Increase recruitment, education, training, and incentives for trade allies to support local businesses
in the utility service area.
5. Continue to study and incorporate innovative policies, programs, and technologies based on utility
ratepayer and utility distributed generation programs across the country.
6. Increase targeted support for some non - profits, schools, and local governments to reduce energy
costs through demand -side management and renewable energy installation.
7. Invest in expanded, cost - effective programs to weatherize and improve energy efficiency in homes
with low- income and fixed - income residents so families can better afford their utility bills.
2
8. Provide public, specific, measurable, and time -bound goals for demand -side management and
renewable energy programs and report to customers on the progress of these programs.
9. Continue to evaluate strategies to transition away from coal generation, and provide additional,
deeper analyses of rate impacts of investing ratepayer funds in additional pollution control
equipment vs investing in demand -side management, distributed generation, and accompanying
smart-grid upgrades.
10. Evaluate introduction of tariffs that incentivize a wider variety of energy choices, such as
customer -owned distributed generation, geothermal systems, electric vehicle charging, energy -
efficient street lighting, and peak load shifting.
11. Continue to engage South Bend stakeholders and customers in planning processes and make
processes and results transparent to and accessible by customers and local policy- makers.
Section II. The Council encourages the State, including the Indiana General Assembly, the Indiana Utility
Regulatory Commission, and the Indiana Office of Energy Development -- to consider the following policies
and opportunities:
1. Provide financial, technical, and logistical support for Hoosiers, especially those with low or fixed
incomes, to weatherize homes and businesses and install energy efficiency and renewable energy
technologies
2. Evaluate and implement legislation and regulation that cost - effectively empowers utilities and their
customers to finance and install clean energy technologies, such as property- assessed clean energy,
virtual net metering, renewable portfolio standards, aggressive building codes, tax credits, and
programs that drive efficiency such as high - performance building standards and incentives and state-
wide support of federal initiatives such as ENERGY STAR or SunShot,
3. Apply rigorous evaluation and, when appropriate, quantitative targets to utility - provided integrated
resource and efficiency plans and rate cases to ensure they protect the economic and environmental
well -being of communities served in both the near -term and the long -term.
4. Drive job creation in the clean energy industry with programs that support existing businesses,
support new businesses, and train potential employees, based on successful programs across the
country.
5. Develop or support economic development and job training opportunities in conjunction with local
governments and electric utilities to assist Indiana workers and communities who are affected by
coal plant retirements.
This Council will continue to follow energy issues at the state, local, and utility levels, seeking the best
opportunities for our constituents in South Bend.
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