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SUBJECT: COMMUNITY ENERGY DISCUSSION <br />DATE: MARCH 9, 2021 Page 10 of 13 <br />• Uniform rate — uniform rate for all sectors (every household and business pays <br />the same rate) <br />0 0.00195 - $400,000 <br />0 0.00341 - $700,000 <br />0 0.004877 - $1,000,000 <br />o Under the $700,000 rate (0.00341/kWh), an average residential premise <br />would spend approx. $21 annually, a commercial premise approx. $320 a <br />year, and an industrial premise approx. $9,940 a year. <br />• Emissions allocation — sector contribution to total GHG emissions (percent <br />contribution to total emissions is equal to the percent contributed to total revenue <br />— similar to City of Boulder) <br />o Under $400,000 rate - residential 0.00193 and commercial/industrial <br />0.00196 <br />o Under $700,000 rate — residential 0.00338 and commercial/industrial <br />0.00343 <br />o Under $1,000,000 rate — residential 0.00483, commercial 0.00498, <br />industrial 0.0049 <br />City funding allocation — proposed allocation of City funds to each sector (amount <br />that each sector pays is equal to what they will receive in City funds through <br />programs/services). The rate can be determined once programming is identified. <br />PEER COMMUNITIES: <br />See attachments for comparison of peer communities that adopted similar taxes and <br />how revenue is used. <br />POTENTIAL USES FOR REVENUE: <br />All potential uses of revenue identified by staff have been determined to be feasible and <br />can be implemented within five years through existing partnerships and frameworks. <br />However, depending on the funding source and program priorities determined, the rate <br />structure should be considered in an equitable way. One sector should not bear the <br />majority of the proposed tax without a reasonable percentage of program support. <br />Commercial and industrial entities currently consume the most electricity and natural <br />gas, produce the largest percentage of community -wide emissions and have an on -site <br />solar rate far below residential properties. With that, commercial/industrial properties <br />and programming and policies focused on this sector have the greatest opportunity for a <br />high impact. In Louisville, commercial/industrial buildings contribute almost 75% of <br />emissions related to electricity consumption. In 2020, there were 79 solar permits, none <br />of which were commercial/industrial. In 2019, there were 96 solar permits — 94 <br />residential and 2 commercial/industrial. <br />Commercial efficiency and solar rebates and incentives would rely on an existing <br />framework, limiting the staff burden of development and implementation, and provide <br />CITY COUNCIL COMMUNICATION <br />12 <br />