TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Brian D. Martin, PE, Public Works Director
SUBJECT:
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Application for funding under the Project Development Assistance Incentives issued by the Energy Trust of Oregon.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Natural Environment Stewardship; and Safe, Reliable and Efficient Infrastructure.
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SUMMARY:
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Energy Trust of Oregon (ETO) incentivizes the development of renewable energy and energy resilience projects that benefit Pacific Power and Portland General Electric ratepayers in Oregon. Through the Project Development Assistance Incentives of Renewable Energy Programs, ETO offers up to 75 percent cost share, capped at $200,000 for renewable electricity generation, including hydropower. The proposed grant application would support planning the development of in-pipe hydroelectric turbine energy generation at two potential sites.
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ISSUE:
Shall City Council authorize the City Manager to submit an application to the Project Development Assistance Incentives of Renewable Energy Programs and, if successful, enter into an agreement with Energy Trust of Oregon to accept the funds?
RECOMMENDATION:
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Authorize the City Manager to submit an application to the Project Development Assistance Incentives of Renewable Energy Program and, if successful, enter into an agreement with Energy Trust of Oregon to accept the funds.
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FACTS AND FINDINGS:
The Energy Trust of Oregon (ETO) is a nonprofit organization funded through customer utility bills to help reduce energy costs and achieve clean energy goals. Project Development Assistance Incentives may be used for Feasibility Study Assistance, Expert Development Assistance, or Grant-writing Assistance. The maximum funding available from ETO is a 75 percent cost share, capped at $200,000. ETO funding is available on a first-come, first-served basis with a rolling application. If a funding agreement is awarded, the mechanism is through reimbursement.
Staff recommends submitting a grant application for $200,000 to plan the development of in-pipe hydroelectric turbine energy generation at two potential sites: the Turner Control site and the Franzen Reservoir site. This study would support activities to develop in-pipe hydroelectric renewable energy in the City of Salem. The consultant would develop a 100 percent design, cost estimate, and generation potential; research permitting and administrative requirements; identify possible uses for the power and identify potential funding sources. During the creation of this plan, staff will conduct community and stakeholder engagement around program development for in-pipe hydroelectric energy.
Related to this proposed grant, the City of Salem applied for a $100,000 grant from the Oregon Department of Energy for the Community Renewable Energy Project (C-REP) to support in-pipe hydroelectric energy generation (File No. 24-144 <https://salem.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=7105>). We expect to learn about the C-REP grant request in September. If awarded the C-REP grant, the ETO project would require no cost share from the City. If not awarded the C-REP grant, the matching requirements would be up to $67,000, which would be sourced from utility opportunity funds.
The Salem Climate Action Plan, accepted by City Council on February 14, 2022, identifies the development of renewable and resilient energy resources as Strategy EN26. The proposed grant-funded project to develop in-pipe hydroelectric energy would inform next steps in developing this renewable energy resource. Increasing renewable energy generation and reducing reliance on fossil fuels are keystone components of the Climate Action Plan to meet emission reduction goals. The development of an in-pipe hydroelectric energy source could significantly advance multiple energy-related efforts in the Climate Action Plan .
BACKGROUND:
The City of Salem has been exploring in-pipe hydroelectric generation for several years. With the recent addition of federal funding and the impetus to move towards a renewable and resilient electrical grid, the cost-benefit is now a viable option for the City of Salem to develop a plan. The Salem Climate Action Plan includes 183 different strategies designed to reduce greenhouse gas emissions and improve community resiliency against the effects of climate change. Thirty-eight separate strategies are tied to energy use, efficiency, and resiliency. Grant funding through the ETO could help accelerate the construction of more clean energy and provide greater community energy resilience.
Robert D. Chandler, PhD, PE
Assistant Public Works Director
Attachments:
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