Investing Exxon restitution funds in Arizona: report to Governor Bruce Babbitt from the Exxon Review Committee

              Investing Exxon Restitution Funds in Arizona
Bruce Babbitt, Governor
State of Arizona
&
A Report to Governor Bruce Babbitt
From the Exxon Review Committee
July 21, 1986
A REPORT TO GOVERNOR BRUCE BABBITT
FROM THE EXXON REVIEW COMMITTEE
Committee Members:
Jim Apperson, Chairman
Speci a1 Assistant, Governor's O f f i c e
Jim Cable
1-10 International Trucks, Inc.
c
Robert Casi 11 as
Claypool, Arizona
Genevieve C. Kakol
U S West Information Systems, Inc.
P a t r i c i a A. Magrath
Storey & Ross, P.C.
Leonard Thompson
KSUN
Janice Wezelman
M i l l e r & P i t t , P.C.
July 21, 1986
Bruce Babbitt, Governor
State o f Arizona
TABLE OF CONTENTS
SECTION I - History
SECTION I1 - Recomnended Programs
SECTION I11 - Recommended Funding
SECTION IV - Suggestions for Expenditures
EXXON RESTITUTION FUND
HI STORY
The history of oil pricing in the United States is a story of price
controls, partial deregulation and, finally, deregulation. Until the
oil embargo of 1973 shocked the nation, oil had federal price controls
which kept the cost of gasoline and heating fuel low. After the
embarao. the federal aovernment wanted to Promote new domestic oil
supplies, so it began % limited decontrol for new exploration. From
this came the expressions "new oil," for newly developed oil sources
and "old oil,". for previously developed oil fiel-ds. In 1981,
President Reagan decontrolled all oil prices.
During the period of limited price controls, oil companies had dif-ficulty
accounting for new and old oil supplies. Consequently, the
Justice Department uncovered a number of instances of oil price
overcharges and began legal actions which resulted in petroleum viola-tion
settlements and court cases. Billions of dollars of overcharges
have been identified and pursued. Chevron Oil Corporation settled out
of Court in 1981 and Arizona received $857,200 in restitution funds.
In December, 1982, Senator John Warner led Congressional debate which
authorized $200 million be returned to the states for restitution.
Arizona received $1.98 million for the five eligible progra.ms
designated by Senator Warner's amendment to the budget reconciliation
act. The Warner amendment required that the funds "supplement, not
supplant" existing funding and it prohibited expenditure of funds on
administration. Congress specified that the Governor utilize these
funds as if they were one of the following energy-related programs:
* State Energy Conservation Program
* Energy Extension Service
* Institutional Conservation Program
* Low-Income Weatherization Assistance Program
* Low-Income Home Energy Assistance Program
In Arizona, the first four of these are administered by the Arizona
Energy Office of the Department of Commerce and the fifth by the
Department of Economic Security.
Exxon Restitution Fund
The Exxon Corporation was accused by the federal government of over-charging
customers for oil from the Hawkins Field in West Texas during
the period 1975-81. Judge Thomas Flannery ruled that Exxon did
overcharge its customers and ordered it to return $2.1 billion in
overcharges and accrued interest. The Judge determined that it was
virtually impossible to compensate individual drivers who were over-charged
and that the most equitable form of restitution was to follow
the Warner Amendment provisions. In February, 1986, the Supreme Court
upheld Judge Flanr~ery's opinion and Exxon deposited the funds in the
U.S. Treasury. Arizona received an electronic transfer of funds for
$21.6 million as its share of the settlement based on petroleum con-sumption
during the overcharge period. The funds were deposited in a
special trust account, the Exxon Restitution Fund, in the state
Treasurer's Office.
When the Secretary of Energy, John Herrington, notified Arizona of its
share of funds, Governor Bruce Babbitt signed a required form stating
the funds would be used in accordance with the Warner Amendment frame-work
and that Arizona would report back to the Court at the end of a
year with a plan of expenditures. Governor Babbitt then began a pro-cess
to determine the best ways to utilize the funds within the five
eligible energy-related programs.
Exxon Review Committee
The Governor appointed an independent, citizens review panel to pre-pare
recommendations for investing Exxon Restitution Funds. The com-mittee
was composed of members who had no vested interests and did not
represent any groups or constituents who would benefit from the funds.
Rather, the committee was charged with the larger task of representing
the best interests of the state and was asked by the Governor to look
for those things that could have the largest long-term benefit to the
state and the greatest energy savings impact.
The Exxon Review Committee met four times over a period of eight weeks
and received comments from over one hundred individuals and organiza-tions.
The committee examined how other states are investing their
funds, the rules and regulations of the court-ordered programs, and
innovative opportunities. After a thorough review of options, the
committee recommended funding for a package of programs that is incor-porated
in this report.
In addition to broad categories for funding, the committee made the
following recommendations:
* Wherever possible, funds should be placed in trust accounts
or revolving loan arrangements to increase the impact and
benefits from the funds.
* All expenditures should undergo a thorough evaluation for
effectiveness and, if warranted, be altered or cancelled.
* Programs recommended for funding over several years should be
seen through to completion.
EXXON RESTITUTION FUND
Recommended Programs
1. Low-Income Energy Programs
Weatherization - The typical home requires $500 - $1600 to improve its
energy efficiency. There are approximately 80,000 homes eligible for
the U.S. Department of Energy Low-Income Weatherization Assistance
program. With four million dollars invested over five years, up to
6,000 households would benefit from reduced energy consumption.
Training should be emphasized to assure effective instal lation and to
improve the skills of weatherization crews. Continuous evaluation
should be conducted and, at least annually, the program should be
thoroughly reviewed for effectiveness.
Partnership Programs - Partnership programs have been established to
leverage existing funds with other money for greater impact. The
Seniors Helping Seniors Energy Savings Program is an example of the
Energy Office and Southwest Gas working together to install low-cost
energy savings devices in the homes of eligible senior citizens.
Arizona Public Service will match dollar-for-dollar in a Neighbors
Helping Neighbors program and Murphy Engineering is developing com-munity
match for Project RENEW. These programs are prototypes of
additional partnerships that can be developed through a Request for
Proposals process to reduce energy waste in homes. In addition, a new
Community Energy Partnerships is being formed as a. non-prof it foun-dation
to provide a stable source of funds for low.-income energy con-servation
programs. In addition to oil overcharges, it would be
funded from a variety of sources and offer services after a com-petitive
proposals process.
Innovative Programs - The current federal rules and regulations for
Weatherization Assistance do not allow for some measures that can be
most effective in Arizona. There are new energy saving devices and
techniques that need to be explored in demonstrations or pilot
programs. A Request for Proposals process and direct technical serv-ices
would create alternatives to overcome these problems and would
attract original, creative programs targeted for Arizona's climate,
lifestyle and housing stock.
Low-Income Energy Assistance - The Department of Economic Security admin-isters
these income transfer funds that provide utility bill
payments, energy emergency assistance and weatherization. Funds
should be used principally for emergency crisis intervention programs
to assist the homeless, provide a revolving fund for utility deposits,
assure no shut-offs for disabled or elderly people, and weatherize
homes. The remaining funds should be distributed in a way to benefit
rural counties since current rules provide substantial funds for the
two urban counties.
2. Energy-Related Air Quality Proqrams
Tune-Ups for Low-Income People - Low-income people a-ffected by the new
emissions law need assistance to tune-up their cars which inay fail
emissions tests. It is estimated $1,200,000 could help approximately
10,000 vehicles to reduce energy waste and pollution. A program
must be designed and then delivered in both Maricopa and Pima
Counties. The Energy Office will provide services and issue a Request
for Proposals to implement the program.
Technical Assistance - Much of the success in the air qua1 ity effort will
come from technical improvements in traffic flow, traffic light
synchronization, alternate commuting modes and tune-up training.
Direct technical services to cities, counties and other groups and
Requests for Proposals can produce needed benefits.
Corporate Incentives - The committee strongly recommends design and imple-mentation
of incentives recommended by the Governor's Urban Air Quality
Task Force to help large employers promote air quality strategies. The
participating companies would receive a rideshare match computer ter-minal,
forms and promotional material. Fifty of the 1 argest employers
in Phoenix and Tucson would participate to help achieve the goal of
doubling ridesharing commuters to twenty percent of area commuters.
Compressed Natural Gas (CNG) - Conversion of 100 state vehicles to CNG can
demonstrate the value and reduce carbon monoxide emissions to one-half
of one percent of gasoline engines. An analysis of the cost-effectiveness
of this and other alternate fuels will be conducted.
After the program has operated for one year, a complete report with
recommendations for other fleet vehicles should be prepared.
Education and Awareness Programs - If progress is to be made in future
years, the motoring public and students in grades 1-12 should receive
information about ways to reduce energy waste and to mitigate air
pollution. Pub1 ic information, classroom materials and teachers
training will be funded.
Bicycling Demonstrations and Incentives - Commuter bicycling can reduce
automobile traffic, energy use and fuel emissions. A study should
identify possible routes as they relate to large employment sites. In
addition, large employers should receive incentives to install showers
and lockers, pub1 ic transit should demonstrate support with bike racks
on buses and at stops, and signs should be installed to promote bike
routes.
3. Schools and Hospitals Conservation
There are 300 school districts with eligible buildings and dozens of hospi-tals
that qualify for matching funds to conduct engineering studies and
install energy savings measures. Emphasis should be given to providing
energy audits and technical assistance to institutions, particularly
those in economic hardship areas. The typical grant repays itself from
energy savings i n t h r e e o r four years. Thus schools can devote l i m i t e d
funds t o education excellence and hospitals to health care r a t h e r than
energy costs. Funds w i l l be provided t o supplement the e x i s t i n g
I n s t i t u t i o n a l Conservation Program.
4. Energy E f f i c i e n t B u i l d i n g Progra-ms
Residential Energy Incentives - Improving the energy e f f i c i e n c y of homes
from present l e v e l s of a i r - c o n d i t i o n e r e f f i c i e n c y t o what i s avail able
on the market could save $3.6 b i l l ion i n unneeded e l e c t r i c generation
construction and save 1,440 megawatts (more than Pa10 Verde u n i t one
-and our Hoover Dam hydropower a l l o c a t i o n ) . Other innovative s t r a t e g i e s
should be explored with homebuilders, lenders and the b u i l d i n g industry
t o increase the energy e f f i c i e n c y o f new homes.
Revolving Loan Fund - A revolving loan fund could provide a l z s t i n g legacy
t o improve energy savings i n r e s i d e n t i a l , commercial and i n d u s t r i a l
buildings. There i s some question whether the Department of Energy
w i l l approve revolving loan funds for r e s i d e n t i a l r e t r o f i t . However,
the committee recommends t h a t revolving loan funds should be ,imple-mented
if at a l l possible. Loans would help overcome the problem of
i n i t i a l cost, which i s the s i n g l e l a r g e s t b a r r i e r t o i n s t a l l a t i o n o f
energy conservation measures.
S t a t e B u i l d i n g s - An energy audit completed by our o f f i c e i d e n t i f i e d
measures t o save hundreds o f thousands of d o l l a r s i n c a p i t o l complex
f a c i l i t i e s . There are a d d i t i o n a l c o s t - e f f e c t i v e demonstrations and
innovations which can save s u b s t a n t i a l amounts of money on energy costs
i n state buildings.
5. Energy Innovation and Demonstration Grants
One of the most successful programs from e a r l y o i l overcharges was the
innovation and demonstration grant program. Schools, l o c a l govern-ments,
energy organizations, small businesses and other energy users
can b e n e f i t from funds made avai 1 able through several sequenced cycles
o f Requests f o r Proposals t h a t screen energy impact and encourage o r i -
g i n a l i t y . Projects with energy saving o p p o r t u n i t i e s might include
cogeneration, t r a i n i n g programs, s t r e e t 1 i g h t conversion and other 1 i g h t
p o l l u t i o n strategies, a g r i c u l t u r e programs, community energy programs,
feasi b i l i t y studies, economic analyses, energy data, demonstrations,
workshops and other energy savings strategies.
6. Solar Economic Development Programs
Solar energy represents a s i g n i f i c a n t opportunity f o r Arizona's economy and
energy future. The committee s t r o n g l y supports e f f o r t s t o promote the
photovoltaic i n d u s t r y b u t it had only one p h o t o v o l t a i c proposal sub-mitted:
a plan t o b u i l d a photovoltaic-powered central e l e c t r i c
generating s t a t ion at the Ocot i 1 l o o i 1-f i r e d plant operated by Arizona
Pub1 i c Service. The committee would p r e f e r t h a t a greater v a r i e t y of
options be sought by the Energy O f f i c e . A Request f o r Proposals should
seek a l t e r n a t i v e proposals, e s p e c i a l l y those with an emphasis on
energy-related economic development opportunities. I n a d d i t i o n , t h e
committee recommends proposals be sought for innovations such as
funding for p r e l iminary planning and design f o r t h e Solar Oasis p r o j e c t
t h a t has been proposed for downtown Phoenix.
7. Indian Programs
The Navajo Nation has sought and obtained from DOE s p e c i a l s t a t u s since it
crosses state borders. An agreement has been reached t o provide funds
based on the population o f the Navajo Nation as a percentage of
Arizona's population. Other Indian t r i b e s are e l i g i b l e f o r energy
programs and services provided through the f i v e e l i g i b l e energy-related
programs.
Additional Recommendat ions
The committee emphasizes i t s desire t o see funds placed i n t r u s t accounts or
revolving loan funds where possible. The long-term value of the program would
be enhanced by such arrangements. The committee recommends t h a t a l l expen-d
i t u r e s be screened for energy savings impact or through a Request f o r Proposals
process. During the course of program d e l i v e r y and at the end o f each year,
programs should be reviewed f o r effectiveness and a l t e r e d or cancel led if
warranted. The cammittee s t r o n g l y recommends t h a t assurances be given service
providers t h a t programs recommended f o r funding over several years w i l l be seen
through t o completion. The committee offers i t s assistance t o serve as a con-t
i n u i n g source of review and comment t o help assure e f f e c t i v e u t i l i z a t i o n o f
these r e s t i t u t i o n funds.
EXXON RESTITUTION FUND
Recommended Funding
(Millions of Dollars)
1. Low-Income Energy Programs $ 7.4
Weatherization $4.0
Training .5
Innovations-Partnerships 1.5
LIEAP (DES) 1.4
2. Energy-Related Air Quality Programs 5.7
Tune-ups for low-income 1.2
Technical assistance 2.0
Corporate incentives .5
Compressed natural gas
and analysis .5
Education and awareness programs 1.0
Bicycling demonstrations
and incentives .5
3. School and Hospital Conservation 2.0
a 4. Energy Efficiency in Buildings
Residential energy incentives 2.0
Revolving loan fund 1.5
State building demonstrations .5
5. Energy Innovation and Demonstration
Grants
Small business
Local Government
Agriculture
Energy Economic Development
6. Solar Economic Development Programs 1.9
Photovoltaics 1.4
Innovations .5
7. Navajo Nation
TOTAL $23.6*
* Total includes anticipated interest earnings.
SECTION IV
Suggestions for Expenditures
Over one hundred individuals and organizations submitted ideas
that totaled over $100 million when everything is taken into
account.
The following pages reflect many of the ideas submitted. This
1 i s t does not reflect whether the projects are eligible or
whether they should be funded. I t is included to provide the
reader with an indication of the variety of options people
suggested.
Suggestions f o r Exxon Expenditures
The f o l l o w i n g organizations have made suggestions for the expenditures o f
Exxon R e s t i t u t i o n Funds. This l i s t i n g i s intended to provide a sample o f
t h e i r w r i t t e n , verbal o r reported comments. It i s not to be construed
as an endorsement o f any ideas nor does i t represent a l l t h e p o s s i b l e uses.
Arizona Community Foundation
The Foundation has offered t o serve as a d i s t r i b u t i o n agent f o r community-based
programs. They f e e l they would add c r e d i b i l i ty t o the process. They
would not need a d m i n i s t r a t i v e funds and could monitor the effectiveness o f
the grants.
Arizona Energy Data System
Data i s a key t o future energy analysis. The data system was s t a r t e d w i t h
o i l overcharge funds and could expand i t s a n a l y t i c a l and evaluation services
wi t h addi t i o n a l funds. An advisory commi t t e e i s composed o f representatives
from the u n i v e r s i t i e s and energy suppliers. It i s administered by the Arizona
Energy Office .
Arizona Solar Energy Commission
The Commission has proposed a v a r i e t y of a c t i v i t i e s to promote solar energy
i n Arizona. The most ambitious proposal i s a Solar Oasis i n Phoenix i n con-j
u n c t i o n w i t h the Disney organization. A $3 m i l 1 i o n investment would help
l u r e the p r o j e c t and create an e x c i t i n g demonstration. The next idea i s a
solar community planned on s t a t e land i n Tucson. Estimated funding ranges
from $150,000 t o $1 m i l l i o n f o r planning and design. A t h i r d solar option i s
promotion o f economic development by demonstrating the value of photovoltaics
and doing economic analyses and job recruitment. About $1.5 m i l l i o n could
develop a very e f f e c t i v e program. Additional solar funds are sought f o r i n f o r -
mation and education workshops and promotion.
Communi ty Partnerships i n Energy
A non-profit foundation i s being developed to endow weatherization assistance
and other community-based energy savings programs. Depending on revolving loan
arrangements, t h i s fund could be a pioneering and innovative way to create a
l a s t i n g source of energy conservation a c t i v i t i e s .
Consumer Energy Council o f America
This n a t i o n a l o r g a n i z a t i o n proposes a wide range o f services i n energy research,
program design and technical analyses. 0
Energy Source Education Counci 1
This Minneapolis comDany has energy education materials a v a i l a b l e for primary
and secondary school programs.
Guaranty Fuels, Inc.
This Kansas company proposes a l t e r n a t i v e t r a n s p o r t a t i o n f u e l production i n a
f a c i l i t y owned and operated by them. They seek f i n a n c i a l supoort.
H i s t o r i c Preservation O f f i c e
The s t a t e agency proposes saving the energy costs associated with new
construction by saving h i s t o r i c b u i l d i n g s . Staff for technical assistance
and funds f o r r e t r o f i t are o f i n t e r e s t t o the agency.
JHK and Associates
These t r a n s p o r t a t i o n consultants suggest they could conduct t r a f f i c flow
improvement programs and other t r a n s p o r t a t i o n p r o j e c t s .
K i tt Peak and Local Governments
The astronomy i n d u s t r y needs reduced l i g h t p o l l u t i o n t o compete successfully
f o r a new world-class telescope on M t . Graham. New e n e r g y - e f f i c i e n t l i g h t i n g
technologies help reduce l i g h t p o l l u t i o n while saving energy on s t r e e t l i g h t s .
Low Income Advocates
A 1 arge assortment o f low-income advocates ( i n c l uding the Governor's
Advisory Counci 1 on Aging, MAG, DES, and i n d i v i d u a l s ) have recommended a
large p o r t i o n go f o r weatherization assistance. Others seek renewed funding
f o r our Seniors Helping Seniors and Neighbors programs. Funding f o r the
homel ess has been sought and homel ess centers may be e l i g i b l e f o r DES-type
fundi ng.
Rock1 and I n d u s t r i e s
This Baltimore company suggests t h e i r i n s u l a t i o n products a r e c o s t - e f f e c t i v e
and should be i n s t a l 1 ed.
Schools and Local Governments
A v a r i e t y o f schools and l o c a l governments have proposed a wide range o f
services and grants t o help these p u b l i c i ~ m t i t u t i o n st o reduce energy waste.
Both the I n s t i t u t i o n a l Conservation Program and grants from the SECP would
f i l l t h i s need.
Service S t a t i o n Dealers Association
A t r a i n i n g program f o r mechanics was very successful and they seek expanded
funding.
State Agencies
State government has great energy savings p o t e n t i a l . Funding f o r energy
engineering studies, demonstrations and improvements would pay i t s e l f back
very q u i c k l y i n reduced operating costs.
Tucson M e t r o ~ o l i t a nE nerav Commission
The Commission has made great s t r i d e s i n community energy planning and
economic analysis. It i s suggesting some new funding and also endorses several
other p r o j e c t s such as the s t a t e lands s o l a r plan and low-income funding.
U o f A College o f Agriculture
Dean B. P. Cardon recommends funds be spent on improving energy e f f i c i e n c y
i n a g r i c u l t u r e .
Urban A i r Q u a l i t y Task Force, MAG, PAG, ADOT, DHS
A wide v a r i e t y o f proponents have recommended a comprehensive package o f
energy-re1 a ted a i r qua1 i ty programs. These include ri deshari ng , t r a f f i c
1 i g h t synchronization, community awareness, tune-up promotion, f l e e t e f f i c i e n c y ,
CNG conversion, b i c y c l i n g promotion and related projects. •
U t i 1 i t i e s and Building Industries
Informal discussions with both u t i 1 i ty representatives and the bui 1 dings
i n d u s t r y r e s u l t e d i n suggestions f o r incentive programs t o promote energy
savings i n new homes. Both f i n a n c i a l incentives and s t a f f technical assistance
(a grant to the homebuilders association fbr an energy expert, f o r example)
are possible.
XENERGY
This " f u l l - s e r v e " energy services company proposes it be hired to conduct a
wide v a r i e t y o f energy auditing and t r a i n i n g programs.
Augspurger Engineering, Inc., Quent Augspurger
As a member o f the Solar Energy Commission and as a p r a c t i c i n g Consulting
Erigineer, he strongly recommends t h a t the Exxon Funds be d i s t r i b u t e d to the
Solar Energy Commission
EBO - 6/20/86
LL- 12
Suggestions for Exxon Expenditures
(Conti nued)
Arizona Community Action Association Inc.
The Association recommends that 40% of the funds be allocated to the Low
Income Home Energy Assistance Program (LIHEAP) and 40% to the DOE
Weatherization Assistance Program (DOE-WAP) . It a1 so recommends a trust fund
concept for weatherization funds.
Tucson Unified School District
The school district proposes that matching funds be provided to permit them to
speed-up replacement of school buses, to allow quicker replacement of its
antiquated absorption chi 11 er units and for purchase of computerized energy
management systems.
Arizona Solar Enerqv Commission
The Commission , in addition to other suggestions, proposes to use $3 mill ion
to fund its participation in the Photovol taic Excel 1 ence Program. The Arizona
Public Service, the Salt River Project and the Electric Power Research
Institute would also participate in the $6.5 million project. Under the
program a one megawatt test facil ity would be planned and constructed. The
Commission also proposes $300,000 for a two year feasibility study to
determine if it is technically feasible to power a water reclamation plant
with solar energy and to utilize solar energy to supplant some current
chemical methods (e.g.. chlorine, ozone or silver ions) used to purify water.
Leaque o f Arizona Cities and Towns
The League recommends that $6 million be earmarked for a competitive grant
program for energy conservation for local governments.
Housinq Authoritv of the Citv of Flaqstaff
The Authority recommends that 85% of the funds be allocated to the Low Income
Weatherization Assistance Program and the Low Income Energy Assi stance
Program.
Revnol ds El ectri cal and Enqineeri nq Co., Inc.
Driver Energy Conservation Awareness Training has a long-term effect and has
low administrative costs.
Arizona Communi tv Foundation
The Foundation proposes that the State allocate 10 percent of the funds for a
demonstration grant program to be administered by the Foundation on a
statewide basis. The grants program would be geared to the needs of the
low-income and the organizations that serve them.
Real tv World
The bulk of the money should go to the Institutional Conservation Program to
instal 1 passive energy generation and energy conservation devices and
materials on all state buildings and vehicles.
Enersv Simulation S~ecialists
Recommends the State Energy Conservation Program and the Institutional Program
because these programs have resulted in the greatest energy savings, are
administered well and are efficient in reaching the citizens.
Rockwell International - Enersv Technoloqv Ensineerina Center
ETEC is capable of providing technical support, technical evaluation and
technical monitoring for energy programs including the State Energy
Conservation Program (SECP), the Energy Extension Service (EES) and the
Weatherization Program.
Nava.io Nation Health Foundation
All 5 programs are useful but the Institutional Conservation Program should be
emphasized.
Salt River Project
All oil overcharge funds should be put in a trust account. Most of the
investment earnings should be directed toward the Low- Income Weatherization
and Energy Assistance Programs.
Ride Share - Pima Association of Governments
The ridesharing activity can be strengthened by 1) stronger support for the
corporate rideshare network, 2) increased development and use of park and ride
facilities, and 3) exploring solutions to parking management, transportation
and land use management.
Lothar Schmidt - Electrical Enqineer
$50,000 to design, build and demonstrate a minimum cost conversion system for
geothermal and other types of low grade heat energy. A1 so, creation of a
revolving loan fund managed by the utilities for energy retrofits.
Northern Arizona Universitv - Steve Chambers, Manasement Research Analvst
The State Energy Conservation Program and the Institutional Conservation
Program (ICP) are the most beneficial to the State universities. State
universities have benefited tremendously from energy audits and conservation
measures funded by the ICP. Mr. Chambers also suggests a reduction in the
matching funds required to give NAU more flexibility and that added weight be
given to areas with harsh climates when distributing the funds.
Me'tro~oil t an Enersv Commission Tucson - Pima Countv
Supports the Solar Energy Commission's proposals because they represent both a
short and long-term opportunity for placing Arizona at the forefront of states
in promoting Solar Energy for today and our future needs.
Pro.iect S.H.A.R.E - John Acer
Some of the Exxon funds should be channeled through S.H.A.R.E which provides
an annual one-time assistance payment for a utility bill for the elderly and
handicapped in need. The Salvation Army distributes the funds throughout the
State.
U of A, Collese of Aqriculture, Coo~erative Extension Service
Use Exxon funds to develop an extensive extension education program di rected
at energy conservation through improved pumping plant and irrigation
efficiency. Farmers could reduce their cost of irrigation from 20 to 50
percent.
Enai neeri nq Economics, Inc. , Go1 den Col orado
All program proposals should be evaluated by two criteria - leveraging and
overall energy impact. Leveraging through the use of cost share programs,
etc. should provide a 3 or 4 to 1 end result for each dollar spent.
Kino Communitv Hos~ital
The Kino Community Hospital has become an active participant in the
Institutional Conservation Program and requests that it be kept informed on
the avai 1 abi 1 i ty of any funding . The technical assi stance energy conservation
study of the institution recommended investing more than $420,000 in order to
achieve significant energy consumption savings.
EBO-LL-9
6/ 10/86
Suggestions for Exxon Expenditures
(Continued)
Arizona Corporation Commission - Renz Jenninqs
Supports the Solar Energy Commission's proposal s, in parti cul ar, the
Photovol taic Electric Power Project. Also a low-income program that puts
evaporative cool i ng on homes where there is only refrigerated air conditioning
or no cool ing. Southern California Edison has an evaporative cool ing rebate
program that is funded in part by Exxon money. This would permanently help
low-income people pay their utility bills.
Arizona Leqislative Council
Request up to $25,000 to pay costs for materials to change the lighting in the
Senate and House Chambers. Estimated pay back is 3 years.
Pima County Board of Su~ervisors, Iris Dewhirst
Supports funds for the Solar Village which would take a piece of State land
and provide an example of how developers can establ ish an energy conserving
and conscious community. Q
Lothar Schmidt, Enerqv Task Force, Yuma
$40,000 to weatherize 19 low-income houses which will be constructed by the
Yuma County Housing Authority.
Community Advocates for Shelter Alternatives (CASAL
CASA proposes the foll owing:
1. Put some of the Exxon money into a trust fund and provide that CASA use
a
the interest to fund monthly utility bills.
2. $10,000 for a revolving loan program to pay the initial utility deposits
for homeless famil ies.
3. Funding for bus tickets and gas to run their van to job interviews and
job sites ($5,000 for bus tickets and $5,000 for gas).
4. $70,000 to develop a low-income energy efficient housing demonstration
a
project.
Harrv Reed, Arizona De~artment of Trans~ortation
1. 50% of the funds could be spent in three air quality planning areas:
1)transportation control measures e.g. transit or van pooling;
2) alternate fuels e.g. propane or alcohol to power our state fleet
and 3) nonvehicular forms of transportation e.g. bicycling and ride
sharing.
2. 50% of the funds could be spent on strategies which can help save energy
indirectly, such as:
1) energy information and education
2) grants for transportation management e.g. vehicle maintenance
and driver training
3) energy research and demonstration projects.
U of A, Environmental Research Laboratorv - Carl Hodses
Interested in the Solar Oasis and wi 11 be providing increased documentation as
more specific plans are developed with the Di sney organization.
Yuma Metro~olitan Planninq Orsanization - Robert Vaushan
Suggests that we choose programs with lasting results and that will improve
quality of life in terms of efficiencies in transportation, personal safety
and related environmental issues. Suggests that the Low Income Energy
Assistance Program be coordinated with APS's Project S.H.A.R.E.
JHK & Associates - Coleen Dillon
Expressed interest in learning the outcome of Governor Babbi tt's decision on
funding, particularly with the State Energy Conservation Program.
Citv of Fl aqstaff - John Roberts
They feel a major portion of the Exxon funds should be placed in the Low
Income Weatherization Assistance Program since this program has the most
direct impact in assisting our citizens and reducing the overall energy
consumption.
EBO - 6/13/86
LL-10
Suggestions for Exxon Expenditures
(Continued)
Citv of Glendale - Georqe Renner
Since 1978, the City has been incl uding energy conservation (weatherization)
i tems in housing rehabil i tation funded by the Community Development Block
Grant. They propose a grant program for eligible homeowners to cover the
weatherization i tems in the rehabil i tation work.
Governor's Arizona Bicvcle Task Force
Request $1,600,000 to imp1 ement the foll owing programs:
1) Bicycle Facility Planning - $350,000 to undertake an aggressive program
of matching 1 ocal funds and providing technical engineering and pl anni ng
assistance to local units of government to facilitate and assist their
devel opment of bikeway faci 1 i ties.
2) Bicycle Education - $500,000 to establish a statewide program of bicycle
safety education for grade school students.
3) Demonstration Projects - $80,000 for a feasibility study of using the
Central Arizona Project right-of-way as a major bikeway; $50,000 for a
commuter bicycling project; and, $220,000 for lines and signs to
designate bicycle lanes.
4) Bicycle Coordinator - $400,000 for a bicycle coordinator for 5 years.
The funding includes secretarial support services, travel, and supplies.
Sunfree Enter~ris es
Proposes that Exxon funds be used to purchase and send Sunfree's "Energy
Conservation Made Fun, Inexpensive and Easy" manual to all households in
Arizona.
U of A - Greq McPherson
Demonstrate to developers and land planners the benefits and costs for a wide
variety of energy conserving options by developing an energy conserving site
design. The purpose is to illustrate how a resource conserving development
might look and the magnitude of potential savings.
National Enerqv Manaqement Institute(NEM1)
NEMI is a non-profit corporation that has had experience in developing energy
conservation programs for pub1 ic institutions and small businesses. They
strongly encourage investment of oil overcharge funds in these areas. One
example is a grant program for surveys and energy audits.
Suggestions for Exxon Expenditures
(Continued)
State Weatheri zation Pol icy Advisory Commi ttee
Trish Georgeoff, Chairman, recommends that 85% of Exxon go to the
Weatherization Assistance and Low- Income Energy Assistance programs
and 15% to the State Energy Conservation Program and Energy Extension
Service.
Lyle Minkler - Yavapai College
Mr. Minkler supports Solar Commission requests for Solar Village and
photovoltaics. He i s a member of the Solar Commission.
Jim Warnock - Arizona Solar Energy Commission
Mr. Warnock clarifies his earlier proposals and indicates he wants to
integrate the energy information center into the Solar Oasis ~roposal.
UA College of Agriculture
L. W. Dewhirst, Director of the Agricultural Experiment Station, recommends
$1 mill ion be spent over three years for the following activities:
1. Drip irrigation and minimum tillage demonstration in
cooperation with Sundance Farms.
2. Development and dissemination of well energy use testing
program and electrical load management software for agri-cul
tural water pumpers.
3. On-farm irrigation management feasibility using remote
sensi ng .
Suggestions for Exxon Expendi tures
(Continued)
Arizona Energy and Older Adult Network
P a t r i c i a Brown, Chair o f the Issues Committee, writes t h a t the organization
urges a program t o r e p a i r hazardous conditions i n the homes o f senior c i ti-zens.
The program should include funds to r e p a i r coolers and disconnected,
unsafe appl iances.
Enercom
Enercom i s a Tempe-based energy services company that has programs i n
eighteen states. They propose the $21.6 m i l l i o n be spent on programs they
have developed i n partnership with u t i l i t i e s i n other states. I n Arizona,
they want to establish a program with Arizona Public Service to weatherize
the homes o f low-income people and provide shared savings f o r schools,
hospitals and government f a c i 1 i t i e s .
Energy Source Education Council
This non-profit, tax-exempt organization proposes d i s t r i b u t i n g i t s energy
conservation k i t s to the 577,492 elementary and secondary students i n
Arizona's schools. Each packet costs about $1 and they request $500,000
per year.
Arizona State Parks
Don Charpio, the Executive Director, seeks $1,480,00Q from Exxon to fund
the following a t Oracle State Park near Tucson: study and design of energy-e
f f i c i e n t buildings a t the Park; bui l d them; design environmental education
programs, displays and exhibits; and implement them.
Suggestions for Exxon Expenditures
(Cor~tinued)
ARC0 Solar - Ray Kosanke
The manager of new business development proposes the Exxon funds be
devoted to two options:
1. The photovol t a i c array o f 1-5 megawatts, with the
p o s s i b i l i t y of the revenues from the plant going
t o help o f f s e t e l e c t r i c i t y b i l l s .
2. A 2 k i l o w a t t photovoltaic array on 500 low-income
e l i g i b l e homes thereby adding one megawatt o f peak
power to Arizona's u t i l i t i e s , reducing the house-hold's
u t i l i t y b i l l and providingttechnology experience.
Tucson-Pima Metropolitan Energy Commission
The Chairman, B i l l Mapes, seeks supplementary funding f o r low-income
weatherization assistance.
Maricopa Association o f Governments
Tempe Councilmember, P a t r i c i a Hatton, requests a portion be allocated to
low-income weatherization and energy assistance.
International D i s t r i c t Heating and Cooling Association
The association promotes the use of appropriate local energy sources t o
heat and cool communities. They recommend small grants be made available
t o local governments f o r f e a s i b i l i t y analysis and i d e n t i f i c a t i o n of
opportunities .
Council o f Energy Resource Tribes (CERT)
Glen Lane, the Principal EngineerIPhysical S c i e n t i s t f o r CERT, recommends
the s t a t e i n v e s t funds for a photovoltaic project submitted by D r . Charles
Backus of ASU. He wants to incorporate photovoltaics i n a multimegawatt
solar e l e c t r i c generating s t a t i o n i n southeastern C a l i f o r n i a .
NAU School o f Forestry
The Director o f Research Programming recommends Exxon funds fund a solar
k i l n to save energy used i n drying lumber, reduce a i r p o l l u t i o n and help
the wood processing industry.
Residential U t i l i t y Consumer Office
The Director, Susan W i l liams, endorses a proposal to be submitted by the
Mayor o f the City o f Yuma and the Chairman o f the Yuma County Board o f
Supervi sors t o reduce cool i ng costs f o r Yuya-area 1 ow i ncome, medical ly
needy and senior c i t i z e n s .
City o f Phoenix - Water and Environmental Resources Department
George B r i t t o n proposes a research and demonstration home l i k e Tucson's
Casa del Agua to c o l l e c t data about the i n t e r r e l a t i o n s h i p between water
use i n and around the house and energy demand. A home would be b u i l t to
incorporate low flow plumbing and water recycling as well as passive solar
design featuring high mass, good i n s u l a t i o n and landscaping. The house
would also be used to inform professionals and the public. To design,
construct and operate the house f o r two years, it i s estimated it would
cost $400,000. Outside matching funds would be sought i n addition to Exxon.
Arizona Public Service
The Manager o f Community and Consumer A f f a i r s , Pat T i l l e r y , reaffirms
i n t e r e s t i n funding f o r the Neighbors Helping Neighbors energy saving
program, p a r t i c u l a r l y i n an area such as Yuma where high temperatures
and low incomes create unusual problems. APS and the Energy Office have
worked together t o develop a p i l o t p r o j e c t funded from Warner o i l overcharge
funds. APS now seeks considerably higher level o f funding for a larger
demonstration of the program.
The Salvation Army
L t . Colonel Bruce Harvey, Divisional Commander, seeks funding to continue
the services offered by the Salvation Army.
Northern Arizona Council of Governments
Ken Sweet, Executive Director, endorses funding 1 ow-i ncome energy
assistance and weatherization programs.
Yuma Officials
The Mayor of Yuma and Chairman of the Yuma County Board of Supervisors
propose expenditures for three projects in Yuma. These have been developed
from input by a wide variety of public and private organizations:
o Rural Retrofit - The Weatherization program for low-income people
should be supplemented to a1 low repairs of $2500, rather than $1600
under current rules.
o Energy Efficient Air Conditioner Replacements - Through grants or loans,
low-income people or fixed-income people would be able to obtain more
energy efficient refrigeration, pre-coolers or evaporative coolers.
o Energy Exposition - An energy expo would bring consumers together
with producers to expose the community to new approaches in energy
conservati on.
Inter-Fai t h Coalition on Energy (ICE)
The Inter-Fai t h Coalition on Energy has formed to address the problems of
energy costs in religious f a c i l i t i e s . The Committee would like to see
funds made available for training and instal lation of measures.