TO: Mayor and City Council
THROUGH: Krishna Namburi, Interim City Manager
FROM: Brian D. Martin, PE, Public Works Director
SUBJECT:
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Application for funding under Community Renewable Energy Grant Program issued by the Oregon Department of Energy.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Natural Environment Stewardship; Safe, Reliable and Efficient Infrastructure.
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SUMMARY:
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Oregon House Bill 2021 created the Community Renewable Energy Grant Program to support community renewable energy and energy resilience projects. The City of Salem is eligible for this program and is requesting to apply for $1,000,000 for constructing a community renewable energy project rooftop solar on the Marion Street Parkade as part of the larger renovations to the facility.
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ISSUE:
Shall City Council authorize the City Manager to submit an application to the Community Renewable Energy Grant Program and, if successful, enter into an agreement with the Oregon Department of Energy to accept the funds?
RECOMMENDATION:
recommendation
Authorize the Interim City Manager to submit an application to the Community Renewable Energy Grant Program and, if successful, enter into an agreement with the Oregon Department of Energy to accept the funds.
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FACTS AND FINDINGS:
Oregon House Bill 2021 (HB 2021) requires retail electricity providers to reduce greenhouse gas emissions associated with energy sold to Oregon consumers. Emission reduction targets start in 2030 at 80 percent below baseline and by 2040 for energy to be 100 percent below baseline levels. HB 2021 included over $64.7 million as a funding mechanism to support community renewable energy generation projects. The City of Salem has applied for grant funding in all previous rounds for construction or planning grants and has been awarded $2,100,000 total. Construction grants are capped at $1,000,000 and require a 50% match. The project for constructing photovoltaic (PV) Solar arrays, canopies, and wiring during the upcoming renovation at Marion Parkade is estimated to cost $2,000,000. Grant-funded projects are required to be started within 12 months and completed within 36 months from the award date, which is anticipated to be December of 2025. Applications for grant funding must be submitted to ODOE by August 22, 2025.
Staff is recommending the submittal of a grant application for $1,000,000 for construction of photovoltaic (PV) Solar arrays, canopies, and wiring on the renovation at Marion Parkade. Oregon State Law ORS 279C.527-528 provides that if green technology is appropriate for a public improvement project, then it shall ensure that the contract provides for at least 1.5% of total contract price to be included for the purpose of including as part of the construction of a public building. PV Solar arrays on the roof of a parking structure has additional benefits including reducing nonrenewable energy use of the Parkade and businesses, reducing operating costs of the Parkade, improving parking experience, and creating more green jobs in the community.
The Marion Parkade renovation project is being funded by the Riverfront Downtown Urban Renewal Area fund. If grant funds are awarded for the Marion Parkade Improvement project, approximately $1 Million in savings will be returned to the Riverfront Downtown Urban Renewal Area fund. Those savings would then be available for re-use to accomplish projects in the Strong and Diverse Economy, Welcome and Livable Community and Safe, Reliable and Efficient Infrastructure results areas. Some of the projects currently underway are streetscape improvements updating sidewalks, lighting and landscaping, a traffic study to ensure pedestrian safety and efficient travel through downtown, and grants to businesses for tenant improvements and business expansion which leverages private investment in downtown.
The Salem Climate Action Plan, accepted by City Council on February 14, 2022, identifies development of renewable and resilient energy resource as Strategy EN26, specifically through installing solar carports in City-owned parking lots identified in Strategy EN25. Increasing renewable energy generation and reducing reliance on fossil fuels are keystone components of the Climate Action Plan to meet the emission reduction goals.
BACKGROUND:
HB 2021 and the Community Renewable Energy Grant Program are designed to spur development of clean energy and community resiliency for small to mid-sized communities in Oregon. This is the fourth round with $12 million of funding available for renewable energy projects. The City of Salem received a total of $2,100,000 from construction and planning projects from the first three rounds as follows:
• Willow Lake Cogeneration Facility - $1,000,000
• Public Works Building Microgrid - $1,000,000
• In-pipe Hydroelectric Planning Study - $100,000.
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. There are thirty-eight separate strategies tied to energy use, efficiency, and resiliency in this Plan. Grant funding through the Community Renewable Energy Program could help accelerate the construction of more clean energy resources and provide greater community energy resilience.
Robert D. Chandler, PhD, PE
Assistant Public Works Director
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