SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving an Application for an Impact Assistance Fund Grant from the Department of Local Affairs and a Water and Energy Efficiency Grant from the United States Bureau of Reclamation for Energy Performance Contracting
Body
DEPARTMENT: Public Works
Department
PRESENTER(S): David Pasic, Interim Public Works Director
Chad Alexander, Facilities Manager
First Name Last Name, Title
FISCAL SUMMARY:
Cost as Recommended: Up to $6,000,000 (Revenue)
Balance Available: $0
Budget Line Item Number: N/A
New Appropriation Required: No
POLICY ISSUES:
None
STAFF RECOMMENDATION:
Recommendation
Approve the Resolution
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
As Erie is a rapidly growing community anticipated to increase in population through 2050, there is a critical need to ensure sustainability is woven throughout policies, decisions, and developments that support the community’s growth. The Sustainability Master Plan is a roadmap to accomplish this and many opportunities exist to increase the amount of renewable energy used in the Erie community, identify creative financing mechanisms for funding energy efficiency and renewable energy projects, and make use of innovative technology to advance Erie’s sustainability goals.
In 2021, the Town partnered with Iconergy LLC to conduct an Investment Grade Audit (IGA) which produced technical assessments, energy audits, and preliminary design for Energy Performance Contracting measures identified in the IGA. These measures included energy efficiency improvements, solar PV, and infrastructure improvements for Town facilities. In 2022, the Board of Trustees, now Town Council, approved resolution 22-99, authorizing staff to apply for an EIAF grant to help pay for the Energy Performance Contracting measures. The DOLA awarded the Town a $750,000 EIAF grant. In 2023, the Board of Trustees approved an Agreement with Iconergy LLC (Resolution 23-062) to complete the Energy Performance Contracting measures identified in the IGA. Staff and Iconergy started these Energy Performance Contract measures in 2023 and completed them in 2024.
In 2024, the Town partnered with Iconergy LLC to conduct a second Investment Grade Audit for additional Energy Performance Contracting measures for Town Facilities. This audit by Iconergy LLC resulted in a preliminary design and cost estimate for a Solar PV project at the Town of Erie North Water Reclamation Facility (NWRF) that would offset 100% of electrical consumption at the NWRF.
Staff requests Council approval to apply for a DOLA Energy Impact Assistance Fund grant (<https://cdola.colorado.gov/funding-programs/energy/mineral-impact-assistance-fund-grant-eiaf>) and a Bureau of Reclamation Water and Energy Efficiency Grant to help fund completion of the NWRF solar PV project.
Fiscal Impact: The current preliminary budget estimate for the NWRF Solar PV Project based on preliminary design is projected to be $10.5M, which includes appropriate contingency and project escalation to 2025. The Town is applying to receive grant funding of up to $1M from DOLA EIAF and up to $5M from the Bureau of Reclamation WEEG. Town funding of $4M was appropriated in the 2024 Wastewater fund for NWRF Solar PV and staff requested an additional $1M in the 2025 budget to match potential grant funding. If this project is completed, tax credits of up to 30% of the project cost may be available through the U.S. Department of Treasury Inflation Reduction Act. The project could start in the 2nd quarter of 2025 pending grant award(s) and Council approval.
COUNCIL PRIORITY(S) ADDRESSED:
ü Well-Maintained Infrastructure
ü Safe and Healthy Community
ü Effective Governance
ü Environmentally Sustainable
ü Fiscally Responsible
ATTACHMENT(S):
1. Resolution 24-156
2. Grant announcements and application forms