OPINION: Green Lab Proposal Requires Due Diligence
Tonight the Falls Church City Council will vote on a proposal to request $25 million in federal stimulus money to conduct a “Net-Zero Energy Demonstration Project” in the City. The idea is to make Falls Church a “Green Lab” in the areas of renewable energy, energy and water efficiency, smart meters, advanced alternative energy technologies, advanced transportation technologies and infrastructure, advanced solid-waste management technologies, and workforce education and training. It calls for a new non-profit organization to run the effort, a “Net-Zero Energy Technology Center” to house it, and a four-person City staff to provide government administration.
Chief advocates for the program include Falls Church Housing Corporation head Carol Jackson and local developer Bob Young, who have asked the Council to vote on the application tonight so it may be submitted by July 1.
The notion of establishing Falls Church City as a “green laboratory” could be a good idea. The City’s small size makes it a good candidate, and the City’s residents are progressive enough and conscientious enough to be supportive. The potential benefits for the City could be significant — investment, jobs and environmental protection here and elsewhere.
And that is why the application should not be rushed. The City should not file a request for federal money before the project is thoroughly considered and vetted. But that appears to be what is happening. The idea was first presented to the City Council last Monday, when only four Council Members were present. Tonight, the Council will vote on the project. This is a three-year, $25 million proposal. The City’s annual budget is less than $70 million. That is a huge jump in funding and responsibility.
There are many questions that should be asked and answered before the City becomes involved in a project this large. Who were all the people and organizations involved in developing the proposal? Do any have conflicts of interest? What will be the City’s liability to the federal government if deliverables are not met? What will be the City’s liability if the program’s loan recipients default? The new non-profit is supposed to raise money to keep the project going after the 3-year federal funding ends, but what happens if it doesn’t? Will the taxpayers be expected to support the employees and facilities in year 4? What is the true application deadline – Do we really have to submit this by July 1? And what happened to make the City Manager change his mind about the project in the course of one week, going from objecting to supporting?
Those questions and more should be asked and answered.
And here is one thing the City Council must do. It must clarify that existing and committed projects do not qualify for the funding. Failure to explicitly state such a restriction will invite abuse of the funds, subjecting the City to embarrassment and possible federal penalties. The stimulus law is clear, and President Obama has been even more clear – state and local governments have a responsibility to avoid waste and abuse of stimulus funds. One City Council member, Daniel Sze, would seem to have a double duty to avoid violating this clear directive as he is both an employee of the Department of Energy and a member of the City Council.
The potential for a problem is not idle speculation. The deliverables, for instance, include “Design and installation of geothermal heating and cooling systems in an affordable housing project in the City.” Are we talking about the planned affordable housing project at City Center South Apartments? That project, to be subsidized by Falls Church taxpayers, already includes a planned geothermal system. If indeed the proposal refers to CCSA, then providing additional federal money for that purpose would not stimulate anything new — no jobs, no economic activity.
Similarly, the application says a portion of the money will be used to finance renewable energy for residents and businesses. Would buildings already planned or under construction qualify? If so, the effort would defeat the purpose of the stimulus money.
To avoid these kinds of situations, it is essential that the City Council expressly state that the requested federal funds would not be used for existing or committed projects.
Clearly, the Council should take time to study this matter more carefully. Our elected officials have an obligation to perform appropriate due diligence, and it is difficult to believe the due diligence has been accomplished in one week. Falls Church citizens have a stake in the Council doing this right, and those who do not yet know the details of this matter have a right to understand it and provide input.
The Green Lab proposal could be a great thing for the City, but the Council must do its homework before giving the green light.
————————————-
The City’s draft application to the U.S. Department of Energy can be viewed here - http://www.fallschurchva.gov/Content/Government/Council/Meetings/2009/June22/ARRAEnergyGrantAtt_062209.pdf
Tonight’s Council meeting starts at 7:30pm in Council Chambers at City Hall.
By Stan Fendley, Falls Church City
June 22, 2009
Stan make a good point about the July 1st deadline. If that’s not a hard deadline then it doesn’t make sense to rush this application – it’s a complex situation and the City should use whatever time available to evaluate it.
However, if July 1 is a significant deadline then I think the CC should push forward with the application. I admit that I don’t know anything about the process but I imagine that whatever is submitted at this stage will go through revisions if it manages to make its way through the approval process. If nothing else, the application seems vague enough that there would be plenty of ways to make sure any funding gets used properly.
This opportunity for federal stimulus money seems pretty unprecedented. Other cities will be going for the money and I think Falls Church should try to get into the mix. I’m not saying we should be reckless about it – I just think there’s plenty of time between now and when any money would come in to make sure we spend it properly.
I also think this proposal is a really long shot – but I love the idea and I’m glad we have some creative thinkers in the City.
In theory, I agree such a proposal would be a good idea, provided it gets worked out properly. The July 1 timeframe seems much too short a time to accomplish this. I very much doubt the players have throught this through. And I can’t help thinking that since Carol Jackson is involved, this has a lot to do with the ill-conceived affordable housing project. She has not played with open cards in the past.
Stimulus funds come with lots of strings attached and are strickly regulated. The reporting requirements are frequent and specific. Who would be in charge of this? Expensive contractors? This is not for amateurs.
Wow, I have to agree with Vigdis. This is a very sticky situation and the Council, while right to question this extensively on the dias on Monday, put its neck WAY out again. I just don’t know how much we should gamble on this since it is tied in with the affordable housing project (CCSA would get funding for making the place more energy efficient – a great thing – but that has to be the only reason Ms. Jackson is involved, because it benefits her interests). Hopefully it is just an application, and the details can be worked out later, or the grant can be declined later if it doesn’t look palatable.