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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 AT TAC HM E NT S : 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.