HomeMy WebLinkAbout2022-09-08 Info Packet
City Council I nformation Packet
September 8, 2022
IP1.Council Tentative Meeting S chedule
Miscellaneous
IP2.Memo from City Manager: American Rescue Plan Act Partnership with UI L abor
Center
IP3.Memo from Assistant City Manager: I owa City S olar Actions Update
IP4.L etter from Climate Action Commission S olar P roject P rioritization Working
Group: I owa City Solar Strategy - P reliminary Priorities
September 8, 2022 City of Iowa City Page 1
Item Number: 1.
S eptember 8, 2022
Council Ten tative Meeting Sched u l e
AT TAC HM E NT S :
Description
Council Tentative Meeting S chedule
City Council Tentative Meeting Schedule
Subject to change
September 8, 2022
Date Time Meeting Location
Tuesday, September 20, 2022 4:00 PM Work Session City Hall, Emma J. Harvat Hall
6:00 PM Formal Meeting 410 E. Washington Street
Monday, October 3, 2022 4:00 PM Work Session City Hall, Emma J. Harvat Hall
6:00 PM Formal Meeting 410 E. Washington Street
Monday, October 17, 2022 4:30 PM Joint Entities Meeting City Hall, Emma J. Harvat Hall
Hosted by City of Iowa City 410 E. Washington Street
Tuesday, October 18, 2022 4:00 PM Work Session City Hall, Emma J. Harvat Hall
6:00 PM Formal Meeting 410 E. Washington Street
Tuesday, November 1, 2022 4:00 PM Work Session City Hall, Emma J. Harvat Hall
6:00 PM Formal Meeting 410 E. Washington Street
Tuesday, November 15, 2022 4:00 PM Work Session City Hall, Emma J. Harvat Hall
6:00 PM Formal Meeting 410 E. Washington Street
Tuesday, December 6, 2022 4:00 PM Work Session City Hall, Emma J. Harvat Hall
6:00 PM Formal Meeting 410 E. Washington Street
Item Number: 2.
S eptember 8, 2022
Memo from City Man ager: American Rescu e Plan Act Partnersh ip with U I
Labor Cen ter
AT TAC HM E NT S :
Description
Memo from City Manager: American Rescue Plan Act Partnership with UI L abor Center
Date: September 7, 2022
To: Mayor and Council
From: Geoff Fruin, City Manager
Re: American Rescue Plan Act Partnership with UI Labor Center
In 2021-22 the City of Iowa City received $18.3 million in American Rescue Plan Act (ARPA)
State and Local Relief Funds. After dedicating several months in 2021 gathering public input,
the City Council generally agreed to guiding principles and numerous priorities for investing
these funds back into our community. To date several important initiatives have commenced,
including participation in the Johnson County Direct Payment program, the relocation
assistance program for Forest View Mobile Home Park residents, expansion of the
CommUnity Mobile Crisis service, participation in the Center for Worker Justice wage theft
program, creation of the Think Iowa City tourism grant program and City utility revenue
replacement.
Several other initiatives remain in the development phase, including a partnership with the UI
Labor Center for an Apprenticeship Opportunity Program that targets historically marginalized
communities that are underrepresented in building trades. The program will aim to help create
clear, supported pathways to high-quality careers. This initiative fits clearly in the City
Council’s ARPA priority to bolster our local workforce. The proposal speaks to the City’s
guiding principles by including multiple partners (Iowa State Building Trades and local non-
profit organizations), promoting opportunities for lasting change, and ensuring funds help
mitigate racial inequities.
The full detailed proposal from the UI Labor Center is attached to this memo. While some
changes to the scope may be needed for grant compliance purposes, staff has concluded
that such a program is eligible under ARPA rules. The estimated grant expenditure is
$500,000 for five cohorts of the Apprenticeship Opportunity Program. If five full cohorts are
not achievable between the time the grant is approved and the ARPA spending deadline,
then that number may be scaled accordingly.
Prior to staff drafting a grant agreement, the City Council is welcome to share any guiding
thoughts at your September 20, 2022 work session. Absent direction otherwise, staff will
begin preparing an agreement that will formally be considered by the UI Labor Center and
City Council later this fall.
Item Number: 3.
S eptember 8, 2022
Memo from Assistan t City Man ager: Iowa City Sol ar Action s Update
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Description
Memo from Assistant City Manager: I owa City S olar Actions Update
Date: September 7, 2022
To: Mayor and Council
From: Rachel Kilburg, Asst. City Manager
Re: Iowa City Solar Actions Update
The September 8, 2022 City Council Information Packet includes a memo from the Climate
Action Commission outlining additional solar actions for the City to prioritize alongside the
existing Climate Action & Adaptation Plan and Accelerating Iowa City’s Climate Actions
Report. For additional context, this memo provides a brief summary of recent and ongoing
efforts taken by the City to promote solar:
• Partnership in the Grow Solar Linn + Johnson Counties program (formerly Solarize
Johnson County), which provides “Solar Power Hour” education events and
incentivizes rooftop solar for homes and businesses. To date more than 1,380 area
residents have attended the Power Hour events, and over 500 kilowatts of rooftop
solar have been installed through this program, which employs local companies to
install the arrays and trains local residents to deliver the Power Hour presentations ;
• Completion of a Solar Feasibility Study for municipal facilities by Bluestem Energy
Solutions;
• New building and development incentives for three projects in the Riverfront
Crossings District which require the developer to attempt to provide solar;
• Incorporating solar into City facility projects, with projects initiated including a rooftop
array at the new Public Works Facility and a ground mounted array at the Iowa City
Municipal Airport;
• Inclusion of rooftop solar panels combined with energy efficiency upgrades in City
housing rehab projects in the South District Homeownership Program, and funding
support for rooftop solar panels at a Habitat for Humanity build project in the same
neighborhood;
• Use of TIF to promote stricter energy efficiency standards and solar at Riverside
West Apartments and Hieronymus Square/Element Hotel;
• Launch of a new commercial/industrial matching grant program for energy efficiency
projects in the Sycamore/First Ave./Heinz/Scott 6 Urban Renewal Areas. To date,
these programs have leveraged $237,760 of TIF funding that, combined with federal
tax credits and private investment have resulted in solar arrays valued at more than
$610,000 with a combined capacity of 357 kW. A video created for the upcoming
Climate Fest highlights one of these arrays at Adamantine Spine Moving and
encourages other businesses to apply;
• Launch of a matching grant program for commercial properties in the
Downtown/Riverfront Crossings district which requires solar proposals be bundled
with an energy efficiency project;
• Awards totaling $30,000 to three non-profit agencies (Shelter House, DVIP and the
Free Medical Clinic) through the Climate Action Grant program for installing rooftop
solar on their facilities. An additional $20,000 has been awarded to two non-profit
agencies (Public Space One and the Bike Library) for energy efficiency upgrades to
their facilities. The Climate Action Grant program is an annual funding program and
other agencies are encouraged to apply;
• Upcoming partnership with the Iowa City School District and Housing Fellowship to
undertake an affordable housing student-build project which aims to achieve net
zero carbon emissions.
City staff continue to emphasize enhanced energy efficiency and beneficial electrification as
the most impactful approach to the City’s net zero emissions goal. Clean energy, including
distributed and large-scale solar projects, play an increasingly important role in these efforts
and the City’s approach that envisions solar as part of an integrated plan of action.
Item Number: 4.
S eptember 8, 2022
Letter from Cl imate Action Commission Solar Project Prioritization Workin g
G roup: Iowa City Solar Strateg y - Prel imin ary Priorities
AT TAC HM E NT S :
Description
L etter from Climate Action Commission S olar P roject P rioritization Working Group: I owa City
Solar Strategy - P reliminary Priorities
Date: August 29, 2022
To: City Council
From: Climate Action Commission Solar Project Prioritization Working Group
Sarah Gardner, Climate Action Coordinator
Rachel Kilburg, Assistant City Manager
Re: Iowa City Solar Strategy: Preliminary Priorities
Introduction
Following the rejection of the utility-scale solar project at Waterworks Prairie Park, the City
was approached by Johnson Clean Energy District (JCED) with a proposal to conduct a
solar energy study with the intention of initiating dialogue among stakeholders regarding
solar. In April 2021, JCED was commissioned to complete a community-sourced solar
feasibility study (“Study”) including recommendations. The completed study involved
numerous researchers, advisors and reviewers and was delivered to the City in January
2022. JCED and partners gave a presentation / Q&A on the study to the Climate Action
Commission (“CAC”) in February 2022 and later returned to share more comments / Q&A at
the CAC August 2022.
In response to the Study and its recommendations, staff formed a course of action for
amending high-priority solar activities into the 100-Day Accelerating Actions Report that are
aligned with the City’s adaptation and mitigation goals. This will accomplish two objectives:
(1) clearly communicate the City’s solar strategy to both internal and external stakeholders;
and (2) place solar activities within the context of other established climate action priorities
and budgets.
As part of this effort, staff identified two recommendations within the Study that were not
deemed feasible at this time. Both of those items and the barriers to implementing them are
discussed at the end of this memo. Staff also identified five actions that could be
implemented within the next 12-15 months. A working group comprised of Climate Action
Commission members was formed and met four times to help prioritize those actions,
identifying three that should be pursued first and two that merited further consideration. This
focus on five actions by the working group is in no way meant to address the rest of the
study. Additional strategies should be developed but in the interest of time and existing
capacities, these specific items are the focus of this memo.
Notably, the working group’s solar initial prioritization memo was drafted prior to the
passage of the Inflation Reduction Act, which completely changes the renewable energy
opportunity landscape in positive ways for the next decade. Rather than go back to the
drawing board during this evolving situation, the CAC voted at its August 15th meeting to
deliver this memo to council with limited edits--particularly to note the additional IRA context
and clarify the preliminary nature of the recommendations.
Therefore, the purpose of this memo is to convey to Council the preliminary recommended
actions as prioritized by the Climate Action Commission Working Group within the context
of competing priorities and available resources, and to provide some explanation as to the
basis for these recommendations. There is every expectation that the working group, and
by extension the CAC, will return to the study in the context of the IRA and other factors.
Recommendations for the near term
Both staff and members of the Climate Action Commission Working Group recommend
maintaining the current focus of the City’s climate action efforts on energy efficiency and
beneficial electrification. Such efforts complement the move to renewable energy sources
by helping control costs and positioning Iowa City residents to maximize the benefits of
clean energy.
At the same time, the following three solar-focused actions were deemed top priorities that
could be undertaken in the near term to help advance solar development within Iowa City.
Accordingly, these projects will be amended into the 100-Day Accelerating Actions Report
as Phase 2 projects, which are those designated to be initiated by 2023 and may be
ongoing through 2030.
1. Assess and update City zoning codes for solar readiness/friendliness. The City
has already adopted a streamlined permitting process for solar installations.
Although the City does not have a comprehensive solar ordinance, small scale solar
arrays are allowed by right as an accessory use throughout the City, including i n
residential areas (with some additional review required in Local Historic Districts and
Local Conservation Districts), and an amendment to the Code made in 2020 outlined
regulations for utility-scale ground-mounted solar energy systems. A comprehensive
solar ordinance could help simplify the search process for homeowners and
developers wanting to determine what is and isn’t allowable for solar installations on
both a residential and commercial properties in Iowa City. At the same time a code
update could address other potential barriers to solar adoption within the City, such
as Homeowners Association (HOA) covenants that are unduly restrictive of rooftop
solar. The Climate Action Commission recommends City staff conduct a review of
current zoning codes and best practices, to be followed by a code cleanup related to
solar ordinances. This project should be completed within the next 9 months.
2. Incorporate an education component into future solar installations on a City
property or facility. Planned City facility projects are evaluated for opportunities to
add solar, which has resulted in recommended installations at locations such as the
new Public Works Streets Facility. Other installations at locations such as the Airport
are evaluated as funding opportunities arise. In many communities where such
projects are pursued, a public education component is incorporated to illustrate
some of the benefits of solar. Such installations are commonly referred to as
“demonstration projects.” Johnson County has constructed six such solar arrays
within Iowa City limits by Johnson County, which were built for both functional and
educational purposes. Real time data for these arrays are available through online
dashboards that detail energy generation, weather conditions, averted emissions
and other pertinent information to provide the public an opportunity to learn more
about solar generation. Because this information is readily available to Iowa City
residents through the County, the Climate Action Commission does not recomm end
pursuing a solar project purely on the basis of serving as a demonstration project.
However, the Commission does recommend that any future solar projects pursued
by the City include an education component, either on site or online. Because the
basic functioning of solar energy is now more widely understood than in decades
past, educational components should prioritize whenever possible a focus on more
unique co-benefits, such as EV charging paired with a solar canopy or ground-
mounted arrays paired with prairie plantings. These projects can be implemented on
an ongoing basis.
3. Continue conversations with MidAmerican Energy about possible solar or
battery storage partnerships. MidAmerican Energy is viewed as a valued partner
of the City and is essential to achieving our emission reduction goas. Although the
solar project proposed for Waterworks Park was met with some opposition in 2020, a
significant percentage of JCED’s survey respondents (77%) indicated support for
utility companies using solar energy to provide electricity for their homes, followed by
a preference for participating in community solar programs (68%). In January,
MidAmerican announced a new initiative to invest in enough renewable energy to
supply the electricity needs of all Iowans. The company has proposed building
50mW of solar generation and exploring emerging technologies, including energy
storage. The City remains interested in serving as a possible host site in accordance
with this new commitment or to pilot projects, such as community solar, if the
legislative changes necessary are secured. Discussions with MidAmerican Energy
about site selection criteria can help identify locations that might be strong
candidates for such projects, and a public engagement effort in partnership between
MidAmerican Energy and the City could help address any concerns from residents
well in advance of site approval.
Finally, the following two action items were deemed to be of interest by the Climate Action
Commission Working Group. Both represent activities that are already being undertaken but
could benefit from additional partnerships or further consideration. More detailed
explanations are provided below.
4. Paired solar / resilience grant program. High upfront costs and lengthy payback
periods can act as deterrents to solar adoption for nonprofits that might otherwise be
interested in rooftop arrays. A $40,000 installation, for example, may only net 6% of
that investment in annual energy savings ($2,400), as estimated by Project Sunroof.
Recent Climate Action Grants to DVIP and Shelter House, though, show there is
interest among nonprofits if installation costs can be lowered. As part of efforts to
establish nonprofits as resilience hubs, a grant program could be established to help
fund solar arrays in return for an agreement that the resulting energy savings be
invested in resilience activities. Such activities could include offering translations of
extreme weather preparedness materials, helping distribute preparedness kits, or
hosting a Climate Resilience Corps. However, the Working Group identified the
number of nonprofits that may not own their own facility as a possible barrier to
participation, as well as the potential for nonprofits to dissolve before a full return on
the solar investment can be realized. For this reason, the Climate Action
Commission recommends staff re-evaluate existing grant opportunities to determine
if they are already successfully serving the demand for solar arrays among
nonprofits or if some modifications could be made to better serve this demand
without creating a separate grant program.
5. Advocate for State legislative changes to enable subscription -based
community solar. City staff have coordinated with our contracted lobbyists to stay
aware of such legislation and support any language that would enable subscription-
based community solar projects. The Climate Action Commission Working Group is
supportive of the continuation of this approach, as well as a suggestion stemming
from discussion of the JCED Study to form an informal regional or statewide
sustainability legislative committee to better coordinate cities’ legislative and
advocacy interests. Because these efforts are already ongoing, the Working Group
did not deem it necessary to assign a Phase 2 or 3 priority level to this action. The
Working Group also recognizes that these efforts can be bolstered by advocacy from
other entities and recommends JCED consider advocating at the state level in
collaboration with other Clean Energy Districts for legislative changes that would
enable subscription-based community solar programs.
Legally infeasible at present
There are two prominent recommendations included in the JCED study and promoted
through subsequent advocacy which staff and the Working Group do not deem legally
feasible under current state law. Although both of these items were recommendations
included in the Accelerating Iowa City’s Climate Actions Plan (also known as the “100 Day
Plan”), the timeframe allocated for the development of that plan did not allow for in-depth
legal analysis of each of the sixty-five potential actions. Subsequent investigation prompted
by both the JCED study and staff efforts yielded a more robust understanding of the legal
landscape and current barriers therein, as follows:
1. Energy Code Adoption
The 2012 International Energy Conservation Code has been adopted by the State of Iowa
as the enforceable energy code within the state. Iowa Code 103A.8A preempts
municipalities from adopting a different energy code or imposing more stringent
requirements. In response to assertions by JCED that the City could adopt an appendix of
newer versions of the IECC that address solar-ready provisions, the City Attorney’s Office
has confirmed with the State Attorney General’s Office that this would be in direct violation
to state law.
Localities are not currently preempted by the State in the same way for building and zoning
codes so, barring any legislative change to this home rule authority, evaluating an update to
these codes for solar readiness was included in the prior recommendations.
2. Community Solar
Although the term ‘community solar’ is often used to mean different things, the Study
defines ‘community solar’ to mean “projects in which members – residents, businesses,
non-profits, and government – can purchase or lease PV panels at a centralized project and
receive credit on their own utility bill, just as they would by installing solar on their own roof.”
The Study is contradictory about community solar as it both acknowledges the barriers that
exist (including some outside of the City’s control) yet calls on the City to implement
community solar.
Based upon staff’s research and conversations with MidAmerican Energy, it is our
understanding (and in line with the opinion held by the Iowa Utilities Board (IU B)) that
legislative changes are necessary for an investor-owned utility, such as MidAmerican, to
implement community solar. Metering energy off-site is prohibited by Iowa law and
subscription rates would require approval through a tariff, of which has previously been
sought by MidAmerican Energy and rejected by the IUB. There is one known investor-
owned community solar project in the State of Iowa, which was approved by the IUB as a
revision to an existing Interstate Light & Power (ILP) tariff. IUB has held that this is a
different circumstance than MidAmerican’s proposal and that the original ILP tariff was
approved prior to the adoption of SF 583, essentially ‘grandfathering’ in the action.
The JCED Study references several other examples of community solar implemented by
municipal electric utilities or electric cooperatives, which are not rate-regulated by the IUB.
Creation of a municipal electrical utility solely for purposes of community solar would be a
highly ineffective and inefficient use of City resources.
Although the City cannot pursue implementation of community solar at this time, staff do
recommend supporting legislative efforts that would enable such an initiative, as discussed
above. Additionally, staff will continue to monitor changes at the state level that might
enable action on these items and will notify City Council should reconsideration be
warranted.
Next Steps
Following these recommendations from the Climate Action Commission, Staff will amend
100-Day Accelerated Actions Report to include action items 1-3. Updates will subsequently
be made with other Climate Action and Adaptation Plan items, which are included in the
Climate Action Commission agenda packets.
Work to update the code has commenced with preliminary research into best practices and
is expected to be brought to Council for approval within 9 months.
Staff will continue to monitor legislative changes at the state level that would allow for the
adoption of more recent energy codes or the pursuit of community solar projects and will
keep both the Climate Action Commission and City Council apprised of any such changes.