HomeMy WebLinkAbout07-11-2022 Climate Action CommissionIowa City Climate Action Commission Agenda
Monday, July 11, 2022, 3:30-5:00 p.m.
Emma J. Harvat Hall
Iowa City City Hall
410 E. Washington St.
Meeting Agenda:
1. Call to Order
2. Roll Call
3. Approval of June 6, 2022 minutes
4. Public Comment on items not on the Agenda
-Commentators shall address the Commission for no more than 3 minutes. Commissioners shall
not engage in discussion with the public concerning said items.
5. Announcements —informational updates
a. Action items from last meeting (Staff)
b. Upcoming events (Staff)
L Lucas Farms History Day (July 9)
ii. Speaking of... Summer Energy Usage (July 18)
c. Working group updates
i. Solar Prioritization (Giannakouros, Krieger, Soglin, Sturdevant)
ii. Insulation Grant Program (Guerra, Fraser, Leckbond)
d. Community Based Organization outreach
i. Home Builders Association (Krieger), South District Neighborhood (Eynon -
Lynch), NAACP, Black Voices Project (Soglin), Johnson County Affordable
Housing Coalition (Fraser), Lucas Farms Neighborhood (Giannakouros)
6. Unfinished Business:
a. 24/7 Initiative questions and next steps —update
i. Presentation by MidAmerican Energy (Kathryn Kunert, Michael Fehr) —
informational presentation, no decision required
7. New Business:
a. Solar Prioritization memo to council —discussion and approval
b. Income -Qualified Energy Efficiency Grant Program: heat pump pilot— informational
update
8. Recap
a. Confirmation of next meeting time and location
b. Actionable items for commission, working groups, and staff
9. Adjourn
If you will need disability -related accommodations in order to participate in this meeting, please contact
Sarah Gardner, Climate Action Coordinator, at 319-887-6162 or at sarah-aardnerCdiowa-citv.ora. Early
requests are strongly encouraged to allow sufficient time to meet your access needs.
MINUTES PRELIMINARY
IOWA CITY CLIMATE ACTION COMMISSION
J U N E 6, 2022 — 3:30 PM — FORMAL MEETING
MEETING ROOM A — IOWA CITY PUBLIC LIBRARY
MEMBERS PRESENT: John Fraser, Ben Grimm, Clarity Guerra, Kasey Hutchinson
(remote), Matt Krieger, Becky Soglin, Jesse Leckband (remote),
Michal Eynon -Lynch, Gabriel Sturdevant
MEMBERS ABSENT: Stratis Giannakouros
STAFF PRESENT: Sarah Gardner, Daniel Bissell, Megan Hill
OTHERS PRESENT: Alexandra Hill (remote), Ilsa DeWald, Elizabeth Wagner
CALL TO ORDER:
Soglin called the meeting to order.
APPROVAL OF MAY 2, 2022 MINUTES:
Krieger moved to approve the minutes from May 2, 2022 with minor edits.
Grimm seconded the motion, a vote was taken, and the motion passed 8-0 (Kasey Hutchinson
not present for the vote).
PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA:
None.
ANNOUNCEMENTS:
Action Items from last meeting (Staff):
Gardner summarized the email sent to commissioners after the last meeting: questions
about the 24/7 Initiative would be -- and have been -- compiled by staff.
Solar Prioritization Working Group Update (Krieger, Soglin, Giannakouros)
o Soglin noted the group identified two priorities they will be bringing to the
Commission in a future meeting.
Staffing Updates (Staff):
• Gardner announced Megan Hill has joined the staff as the engagement specialist.
o This means Hill's former seat on the Commission is now vacant. Commissioners
engaging in Community -Based Organizations (CBO) outreach this upcoming
month were encouraged to mention the vacancy in hopes of helping to fill it.
Climate Action Plan Updates:
Gardner reviewed the Climate Action Plan spreadsheet. Items to note:
o They had great participation in the revised energy efficiency program.
o Climate action grants were awarded.
Climate Action Commission
June 6, 2022
Page 2 of 5
Habitat for Humanity is doing an electrification project at one of their
builds: all appliances are going to be electric and high -efficiency units.
This is also going to be a women's build project.
Downtown TIF-funded energy efficiency program has one grant going out
and has received another application. Economic development staff is
exploring how participation in this program might be boosted in coming
years.
{Kasey Hutchinson joined the meeting}
Upcoming Events:
• Gardner noted a June 15 presentation by the MPO transportation planners called "Easy
on the Gas," which will highlight green commute options within the region. The event is a
collaboration with ECICOG, which has a vanpool program available to workers
anywhere within the corridor network but particularly aimed at workers commuting to
processing plants south of the city. A registration link was sent out in a press release by
City; commissioners can also request the link from staff.
• The Love Food Fight Waste program has launched. Resource management staff (Jane
Wilch) is working with Table to Table on this program.
• Hill is working on arranging the Climate Ambassador picnic and field trips for climate
ambassadors. She will also be launching a Climate Ambassador newsletter as another
engagement tool.
Climate Ambassador picnic is July 20, 5-7 p.m. at Happy Hollow Park.
• Teen Resilience Corps will hopefully launch June 13.
• Speaking of... Local Foods will occur June 21.
UNFINISHED BUSINESS:
24/7 Initiative question and next steps:
• Staff have been compiling questions, including those pulled from the minutes, ones that
commissioners emailed after the last meeting, and questions that staff have raised.
• Gardner reminded commissioners that at this early stage of the process, no position
needs to be taken at this time. Rather, the goal is to identify questions that might help
with the decision -making process.
o This initiative began with corporate entities, particularly entities in the tech sector
(Google, Microsoft, Facebook) who have data centers, and it's only within the last
year that cities have begun looking at adopting 24/7 initiatives themselves,
including Des Moines.
o Staff have identified some complexities that put Iowa City a little different position
than Des Moines. Des Moines is served entirely by MidAmerican and Iowa City is
served by two different utilities. Also, Des Moines recently renewed their
franchise agreement, which was an opportunity to negotiate with the utility. Iowa
City's franchise agreement does not go up for renewal until 2027.
o Staff have signed on to a cohort of cities who are exploring the 24/7 initiative to
learn more.
o Gardner noted one of the reasons the Commission is being asked to help
examine this proposal is because of the potential impact on ratepayers in Iowa
City. Initial research looking at material from the Rocky Mountain Institute
Climate Action Commission
June 6, 2022
Page 3 of 5
suggests reaching just 80% of the goal could potentially double rates for
residents, which raises equity concerns.
Commissioners should let staff know of any questions if they haven't already and they
will list them in the agenda packet for next month's meeting.
NEW BUSINESS:
Science -Based Targets initiatives (Alexandra Hill, Climate Disclosure Project):
o CDP provides support to cities to help them through the investor disclosure
process. "Investor requested disclosure" came about because investors were
seeking insight about how companies were preparing for climate change and
what environmental actions they were taking. Last year, CDP received disclosure
data from over 13,000 corporations and 1,128 cities around the world.
o Cities account for over 70% of global emissions and are home to 56% of the
global population. In the 2020 CDP disclosure data, 93% of cities reported they
are already suffering from climate impacts
o CDP defines science -based target as measurable and actionable targets that
align with the Paris Climate Agreement. The three key components of science -
based targets are:
• they cover city-wide emissions in a way that is complete and robust,
• they align with the latest climate science such as the IPCC Special Report
on Global Warming of 1.5 C
• they represent a city's fair share of the emissions that needs to be
reduced by 2030 in order to reach global net zero by 2050. Equity is built
into a science -based target because the target is based on the historic
emissions or the current socioeconomic context of a city.
o A science -based target has two parts: a net zero target year by 2050 or sooner,
and a midterm target that is to be reached by 2030 or sooner.
o There are three methodologies for any city to use: WWF's One Planet City
Challenge, C40 Cities' Deadline 2020 and Manchester University's Tyndall
Centre methodology.
o CDP recommends WWF's One Planet City Challenge methodology because it is
the easiest for a city to calculate. The necessary numbers are: the citywide scope
one and two emissions from 2018, the city population data for 2018, the
projected city population data for 2030, and their nationwide HDI score.
o WWF's OPCC uses the HDI (Human Development Index) from the United
Nations to incorporate equity. The HDI is a national figure based upon a nation's
education levels, life expectancy, and the per capita income for citizens of that
nation.
o Hill next discussed High Impact Actions: transport, stationary energy and
buildings. She showed examples from cities across North America. All cities with
a disclosure are listed on the CDP's website, so it is possible to see the details
on what those cities are doing.
o Krieger asked about cost. Hill replied there's no fee for cities to disclose through
CDP, nor to participate in the matchmaker program, catalyzed cohort and other
such opportunities. CDP funds their work through foundations or philanthropies
so they can provide that support to cities for free.
o Hill reported that CDP strives to help cities work through any challenges or
barriers they are facing when setting science -based targets. She acknowledged
Climate Action Commission
June 6, 2022
Page 4 of 5
there are some areas of the country that are less receptive to hearing climate
change so for those areas there is an emphasis more on meeting the needs of
the residents through adaptation and resilience actions.
Krieger questioned the burden on City staff to submit this disclosure. Hill replied
they shortened the questionnaire, and the reporting burden has really gone
down. For a city that has previously disclosed, or a city that readily has the data
available, the whole procedure should take between three to five hours.
Gardner asked how this CDP disclosure relates to Cities Race to Zero, another
initiative Iowa City has been approached about considering. Hill stated CDP is a
partner of the Cities Race to Zero, which asks that cities have a net zero target
by 2050, a midterm target by 2030 or sooner. The requirement to disclose is met
by the CDP disclosure.
Guerra asked where the public falls into the conversation around these
commitments: whether one is especially recognizable and would help rally public
support. Hill noted that the Cities Race to Zero is attractive to a lot of cities
because they have a marketing campaign built with materials that can help show
residents what the city is doing.
RECAP OF ACTIONABLE ITEMS FOR COMMISSION, WORKING GROUPS, AND STAFF:
• Next meeting will be Tuesday, July 5 at City Hall.
• Send Gardner any questions regarding the 24/7 Initiative to be included in next month':
agenda packet.
• Gardner will reach out to Commission members who have signed up to connect with a
CBO to discuss next steps.
• Bissell will reach out to the insulation working group to set a time and date for the initial
meeting.
ADJOURNMENT:
Eynon -Lynch moved to adjourn, Sturdevant seconded the motion. A vote was taken and the
motion passed 9-0.
Climate Action Commission
June 6, 2022
Page 5 of 5
CLIMATE ACTION
COMMISSIONATTENDANCE
RECORD
2022
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N
N
N
N
N
N
N
N
N
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M
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Madeleine
12/31/2022
O/E
NM
Bradley*
Michel Eynon-
12/31/2024
—
—
—
—
—
NM
X
X
X
X
X
X
Lynch
John Fraser
12/31/2024
X
NM
X
O/E
X
NM
X
X
X
X
X
X
Stratis
X
NM
X
X
X
NM
O/E
X
X
X
O/E
Giannakouros
UI Rep
X
Clarity Guerra
12/31/2022
—
—
—
—
—
NM
X
X
X
X
O/E
x
Ben Grimm
10131/2022
X
NM
X
X
X
NM
O/E
X
X
O/E
X
X
Grace
12/31/2021
O/E
NM
O/E
O/E
O/E
NM
—
—
—
—
—
—
Holbrook
Megan Hill*
12/31/2022
X
NM
X
X
X
NM
X
X
X
X
X
--
Kasey
12/31/2022
X
NM
X
X
X
NM
X
X
X
X
X
x
Hutchinson
Matt Krieger
12/31/2023
X
NM
X
X
X
NM
X
X
X
X
O/E
x
Jesse
MidAmerican
O/E
NM
X
X
O/E
NM
X
O/E
X
X
X
x
Leckband
Rep
Becky Soglin
12/31/2022
X
NM
X
X
X
NM
X
X
X
X
X
x
Gabe
12/31/2024
--
—
—
—
—
NM
X
X
X
X
O/E
x
Sturdevant
Eric Tate*
1 12/31/2021
O/E
I NM
X
X
X
NM
—
KEY: X = Present
0 = Absent
0/E = Absent/Excused
NM= No
Meeting
* No longer on Commission
QUESTIONS RAISED DURING IEC PRESENTATION TO THE COMMISSION
• Is there a road map as to how to move forward if Iowa City were to adopt a 24/7 pledge?
• How does energy democratization and resilience fit with this initiative?
• Has the IPCC changed the target emissions reduction goals from 2050 to 2030?
QUESTIONS FOR IEC
• Could IEC provide a summary of the reduction target goals mentioned in their presentation?
• Could IEC provide some background as to Synapse as a company and their analysis behind the
conclusion if MidAmerican closes coal-fired plants and shifts to 24/7 clean energy provisions it
could save ratepayers (customers) $1.2 billion? Is the underlying assumption for the claim all of
MidAmerican's territory, or for Iowa only?
• It seems there would be only an incremental change in the shift from coal by virtue of Iowa City
asking for 24/7. Given that, what happens to rates for Iowa City customers in the interim? How
does this affect us compared to neighboring or nearby towns?
• Have neighboring Corridor communities also been approached by IEC about adopting a 24/7
commitment? If so, who?
• Can IEC provide examples where cities have achieved both a 24/7 commitment and no adverse
utility cost (affordability) or provision (reliability) changes to residents?
• IEC seemed to say on the one hand there is no federal action on clean energy but later said
there is the Executive Order for CFE by 2035 -- possible misheard or misunderstood, but would
appreciate clarification.
• The list of business in support of this initiative seems fairly limited and does not appear to
include industrial entities. Have they been contacted to get their thoughts/input on this
resolution? If so, who?
QUESTIONS FOR MIDAMERICAN
• What are the projected impacts of a 24/7 initiative on rates paid by residents? What are
projected impacts on commercial electricity rates?
• How does this affect us compared to neighboring or nearby towns?
• Can MidAmerican respond to the Synapse report finding that if MidAmerican closes coal-fired
plants and shifts to 24/7 clean energy provisions it could save ratepayers (customers) $1.2
billion?
QUESTIONS FOR CLIMATE ACTION STAFF
• If rates are increased in Iowa City but not in neighboring towns, does this further compound
affordable housing issues and potentially work against transportation reduction goals by
incentivizing living outside of Iowa City?
• Can staff provide examples where cities have achieved both a 24/7 commitment and no adverse
utility cost (affordability) or provision (reliability) changes to residents?
• Are there any examples of equity safeguards any of these communities have adopted to protect
energy -burdened residents?
• Can staff ask Des Moines for a summary of what exactly they have committed to and what
actually has happened or they expect to happen?
• A small subset of Iowa City's electrical needs are not served by MiclAmerican—is that
addressed?
• What risk do we run of state preemption of Iowa City's ability to negotiate franchise
agreements, given that our franchise agreement is not up for renewal for several more years?
• Have staff contacted commercial or industrial entities not on the list of supporters to get their
thoughts/input on this resolution?
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F I L
Date: July 8, 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
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 was delivered
to the City in January 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 in the near term. A working group comprised of Climate Action Commission
members was formed to help prioritize those actions, identifying three that should be
pursued first and two that merited further consideration.
The purpose of this memo is to convey to Council the 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.
Recommendations
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. In addition, the following three 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 in
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 recommend
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
MidAmerica 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 but were not prioritized to pursue at this time. Explanations as
to why 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 Teen 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.
Out of scope
There are two prominent recommendations included in the JCED study and promoted
through subsequent advocacy which staff do not deem feasible at present, and the Working
Group concurred:
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 assertations 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 staffs' understanding 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 (IUB)) 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.
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 bi-monthly 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.
r
_.- -4 CITY OF I O WA CITY
-�� MEMORANDUM
Date:
July 8, 2022
To:
Climate Action Commission
From:
Daniel Bissell, Climate Action Analyst
Re:
Air -Source Heat Pump Grant Program
In Spring of 2022 the City of Iowa City implemented its Residential Energy Efficiency Incentive
grant program. That program covers the 100% of the cost of attic insulation of at least R-49 and
up to R-60, and electrical panel upgrades to 200 amps, including burying service lines to make
homes more resilient to wind and ice events. Upgraded electrical panels are not an energy
efficiency measure in and of themselves, but they make possible the addition of future efficiency
upgrades including heat pump or hybrid water heaters, air -source heat pump HVAC, and
electric vehicle charging. The purpose of this memo is to present a new grant program to help
homeowners offset the cost of installing an air -source heat pump HVAC system.
The proposed grant would cover 80% of total cost for income -qualified households, and 50% of
the cost for all other households. For the purposes of this grant, "income qualified" means gross
household income below 80% median income level for Iowa City. Based on a small number of
City -owned properties that are having heat pumps installed, staff recommend piloting the
program with a $60,000 budget, which we estimate could benefit about 5 homes in the first year.
A letter will be sent to prior participants in the previous insulation and electrical panel upgrade
grant, as well as NDS rehab projects encouraging them to take advantage of this grant funding
along with a list of qualified contractors.
As with the insulation and electrical panel grant, following initial contact from NDS staff, the City
will then enter into an agreement with the homeowner to grant the funds for an air -source heat
pump HVAC system. The homeowner will choose the contractor, who will then submit an
estimate to both homeowner and city staff. The City will agree to cover 80% of the estimated
costs and any incidentals related only to the heat pump installation. When work is complete, the
contractor will submit an invoice to the City. The City will pay the contractor when staff confirm
that a permit was issued for the work, and the homeowner confirms the work has been
completed.
As with the other grant program, pre -qualified homeowners who have not had an energy audit
completed by Green Iowa AmeriCorps will be required to obtain an energy audit as part of the
grant program. If the energy audit was completed more than two years prior to entering an
agreement with a homeowner, a new energy audit will be performed. Staff will evaluate the
program effectiveness on an ongoing basis. Homeowners will be asked to sign a third -party
release form with MidAmerican Energy so that staff will have access to utility bills. Staff will
access and evaluate utility bills for a 24-month period, 12 months before project completion, and
12 months after project completion. Approved grants will be mapped on GIS overlaid with
income and/or race and ethnic data to ensure equity in implementation.
The program seeks to offer a roadmap to homeowners to increase efficiency, electrify, and
decarbonize their homes using a series of grants to complete upgrades. In future years, the city
may offer these same homeowners grants to cover the cost of a heat pump (hybrid) water
heater, duct sealing, and electric vehicle charging.
Iowa City: Climate Action Plan Equity Implementation Toolkit (June 2021)
Step 1: Desired Outcomes and Goals
1a. Project Name:
Air Source Heat Pump Grant Program
1b. Project Description:
In order to increase energy efficiency of residential heating and cooling, thus
reducing the carbon intensity of heating and cooling residential living spaces,
the City of Iowa City proposes to offer a rebate on the installation of
air -source heat pump HVAC systems, completely replacing any existing air
conditioning units, and replacing or supplementing the existing natural gas
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1c. Project Area: Transportation
1d. Project Type: Incentives
le. What is the desired outcome for this proposal?
The desired outcome is to retrofit as many existing single-family residential
homes with air -source heat pump HVAC systems as possible. Those
homeowners would benefit from more comfortable homes and lower energy
bills.
Step 2: Data
2a. Who is the targeted audience for this action? (Select all that apply)
❑ City-wide
Ro
❑✓ Residential
❑✓ Single -Dwelling Residential
❑✓ Owner -Occupied
✓❑ Rental
❑ Multi -Dwelling Residential
❑ Owner -Occupied
❑ Rental
❑ Commercial
❑ Small Business
❑ Large Business
❑ Industrial
❑ Other:
❑Public/Non-Profit Institutions
❑ Non -Profit Organizations
❑ University of Iowa
❑Kirkwood Community College
❑ Other:
2b. Are there impacts on specific neighborhoods or geographic areas?
❑ Yes
✓❑ No
If yes, which neighborhoods or regions will be impacted by this action?
(Select all that apply)
Regions Neighborhoods
❑ North
❑
Manville Heights
❑ West
❑
Melrose Ave
❑ East
❑
Miller Orchard
❑ South
❑
Morningside/Glendale
❑ Central
❑
Parkview Ter./Normandy
❑
Northside
❑
Oak Grove
❑
Peninsula Area
❑
Penny Bryn
❑
Bluffwood
❑
South District
❑
College Green
❑
Ty'n Cae
❑
Country Club Estates
❑
Walnut Ridge
❑
Creekside
❑
Waterfront
❑
Eastside
❑
Washington
❑
Galway Hills
❑
Hills Windsor
❑
Goosetown
❑
Ridge
❑
Longfellow
❑
Other:
❑
Lucas Farms
Please review the Climate Action Equity Map to
consider other geographic factors that may be
impacted by the proposed action(s).
What are the observations?
Why use mapping as a tool to analyze
the distribution of city services?
It can demonstrate how differently a
city action can affect different
populations or geographical areas. It can
illustrate the community's assets and
weaknesses.
This action has the potential to impact any residential neighborhood with
single-family housing.
2c. What are the primary demographics of those that would be impacted by
the proposal? Consider who is being affected or involved in the action and
whether all are able to participate and/or benefit to the same degree. (Select
all that apply)
❑ Communities/people of color
❑ Young people
❑ People with disabilities
Q Older people
❑ LGBTQ+ community
❑ Communities of immigrants and/or limited English proficiency
❑ People without employment
❑ People who depend on public transit or other non -single -driver
transportation
Other individuals or communities that have been disenfranchised
Will remove, or potentially remove, barrier(s) that caused inequity in the
first place Qustice)
Other:
2d. What is the budget of the work of the action and will that impact the ability
to successfully address equity?
Staff recommends a pilot program with a budget of $60,000 which has the
potential to impact 5 homes this year.
2e. Is the individual or household's personal wealth a determining factor in the
ability to benefit from this action?
To a degree, yes. People who own their own home or live in single-family housing
typically have a higher income. However, the City desires to have a higher -impact
on people of modest income. To this end, the City proposes to offer a grant of 80%
of the total cost of installation for income -qualified households, defined as gross
household income falling below 80% of median income level for Iowa City. All other
households will qualify for a grant of 50% of the total cost of installation.
2f. Is there any essential data missing or need further exploration?
If an energy audit has not yet been completed on a home, one will be required. It is
essential that the home have sufficient insulation so that the heat pump functions
efficiently. Staff also requests 12 months of energy bills before, and 12 months
after installation.
How do you plan to find out the information?
Green Iowa AmeriCorps energy audit data, and the requested MidAmerican
Energy bills.
Step 3: Stakeholder Involvement / Community Engagement
Who are the "stakeholders"? Stakeholders are
3a. Who are the stakeholders involved those impacted or interested in the action.
Examples include residents, city staff, community
in this action? organizations, businesses, etc.
Stakeholders include Iowa City residents, property owners, and all MidAmerican
Energy rate payers.
3b. Which groups have been part of the
decision -making?
City staff and local HVAC contractors.
3c. Are there groups that have been missing in the conversation? Which
ones?
There has been limited outreach to pre -qualified homeowners, some of whom have
taken advantage of the insulation and/or electrical panel upgrade grants. Those
who have taken advantage of the electrical panel upgrade know that the purpose of
that upgrade makes possible future electrification including air -source heat pumps.
if yes, what are opportunities for outreach to engage these groups?
City staff will continue to reach out to residents and homeowners regarding this
program.
IOWA CITY COMMUNITY ENGAGEMENT & STAKEHOLDER MAP
The Community Engagement & Stakeholder Map from the Addressing Climate Change,
Health, and Equity in Iowa City Report is aimed to help the City understand how
different stakeholders may be impacted by environmental policies differently due to
client vulnerabilities and connectedness to the city. The purpose is to promote
engagement between the City and community organizations. Depending on where the
stakeholder is located on the map will impact how they will be engaged and reached by
the City.
Influence in environmental decision -making (time,
resources, information, perceived ability to influence
outcomes)
3d. Using the Iowa City Community Enqaqement & Stakeholder Map above,
where do the involved stakeholders fall in the quadrant(s)? How have the
stakeholders or community member/groups been involved in the
development of this proposal? (Fill in as applicable)
Stakeholder #1: Homeowners & Reside
Stakeholder #5:
Quadrant: A
Quadrant: A
0 Informed
❑ Informed
❑ Consulted
❑ Consulted
❑ Collaborated
❑ Collaborated
❑ Shared Decision -Making
❑ Shared Decision -Making
Stakeholder #2: HVAc contractors
Stakeholder #6:
Quadrant: B
Quadrant: A
Q Informed
❑ Informed
❑ Consulted
❑ Consulted
❑ Collaborated
❑ Collaborated
❑ Shared Decision -Making
❑ Shared Decision -Making
Stakeholder #3:
Stakeholder #7:
Quadrant: A
Quadrant: A
❑ Informed
❑ Informed
❑ Consulted
❑ Consulted
❑ Collaborated
❑ Collaborated
❑ Shared Decision -Making
❑ Shared Decision -Making
Stakeholder #4:
Stakeholder #8:
Quadrant: A
Quadrant: A
❑ Informed
❑ Informed
❑ Consulted
❑ Consulted
❑ Collaborated
❑ Collaborated
❑ Shared Decision -Making
❑ Shared Decision -Making
3e. How does the quadrant impact how the stakeholders are engaged?
HVAC Contractors in quadrant B were directly engaged in a webinar presentation
by an HVAC manufacturer rep. Home owners/residents in quadrant A are being
reached out to via a letter and flyer.
A If applicable, where do the groups most impacted by the action fall in the
quadrant(s) (identified in Step 2c)?
Groups most impacted are in quadrant A.
3g. What are the strategies to gather input and feedback from stakeholders?
✓❑ One-on-one interviews
❑ Focus groups
J❑ Online survey
❑ small group facilitated workshops
❑ Collaboration on activities or projects
❑ Other:
3h. Do the materials used to market this program need to be translated into
other languages other than English?
❑ Yes
❑ No
J❑ Maybe
❑ Not Applicable
Step 4 — Benefit / Burden Determination
4a. Are there other non -economic or non-direct-GHG-reduction benefits or
advantages? (Select all that apply)
❑ Neighbors get to know each other
❑✓ Advances knowledge of some aspect of climate change or sustainability
❑ Provides for childhood learning or development in general
❑ Leads to access to other education or training for adults
❑✓ Improves air, land and/or water quality
❑ Improves healthier living in general
❑ Supports biodiversity
❑ Makes travel/transit easier/efficient, safer or reliable, especially people
who are vulnerable
❑ Makes "greener" travel more possible for all by bus, walking, biking, etc.
❑ Otherwise supports part or all of action in one of the other action areas:
Buildings, Transportation, Waste, Adaptation, Sustainable Living
❑✓ Easily replicable and scalable
Q Engagement with community stakeholders or agencies
❑ Other:
4b. Are there other economic benefits? (Select all that apply)
❑✓ Increases home or building value
❑✓ Adds new or advances existing jobs/profession
❑✓ Supports local economy
❑ Other:
4c. Does it conflict with any other action in the 100-day plan?
❑ Buildings
❑ Transportation
❑ Waste
❑ Adaptation
❑ Sustainable Lifestyle
If yes, how?
4d. Which group(s) will be more positively impacted by the outcome of this
action?
Homeowners and MidAmerican Energy ratepayers will be more positively
impacted by this action.
4e. Are there any obstacles that are keeping particular groups from
participating in the benefits of this action? (Select all that apply)
❑ Education
❑✓ Financial
❑ Time
❑ Physical accessibility
❑ Lack of cultural sensitivity
❑ Language barriers
❑ Other:
10
Step 5 — Strategies / Recommendations
5a. If applicable, what are the strategies for addressing the potential identified
burdens/obstacles?
Staff recommends development of a separate program to incentivize energy
efficiency improvements in multi -family rental housing.
5b. How can partnerships with stakeholders be continued throughout the
implementation process?
Open communication and fostering relationships between homeowners, city
staff, and HVAC contractors.
5c. What remains unresolved? What resources or internal/external
partnerships do you still need to make changes?
Educating both homeowners and HVAC contractors regarding the effectiveness
of air -source heat pumps in an Iowa climate is needed.
11
Step 6 — Evaluation and Accountability
6a. In what ways would this action be considered "successful" for equity in
the Iowa City community?
This action will be considered successful from an equity perspective if
air -source heat pumps can be installed in income -qualified households.
6b. How can the impacts and outcomes be documented and evaluated over
time?
Comparing before and after MidAmerican Energy bills of participant households
can document the impact of this program.
6c. Is there a clear way for stakeholders or community members to contact
with questions or concerns over this action?
Yes, all materials direct interested homeowners and enrolled participants to
contact appropriate city staff.
12