CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the update on the Renewable Energy Program and proposed program changes for 2026
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DEPARTMENT: Community Services
SUBMITTED BY: Ben Mjolness, Sustainability Manager
BOARD/COMMISSION REVIEW:
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BACKGROUND:
In 2004, the City Council approved the creation of the Renewable Energy Program (REP) as a way for Electric Utility customers to monetarily support renewable energy.
Various changes to the program have occurred over the past 20 years, including an increase in purchases of Renewable Energy Certificates (RECs) and adding energy efficiency grants for commercial and residential properties to the program. A significant turning point in the program occurred in March of 2020 when the City Council and Public Utilities Advisory Board (PUAB) approved expanding the grant program to include residential energy efficiency initiatives such as window and attic insulation upgrades. These changes were made to reduce energy consumption across the city. At the same time, an increase in solar incentives was approved to encourage local generation while reducing the growing Renewable Energy Fund cash balance.
In 2021, REC purchases were formally discontinued so that funds could be utilized solely to support local efficiency and solar installation projects. Since 2021 adjustments have been made to the maximum award amount and reimbursement amounts to make the program more sustainable and adapt to various market changes as well as an increase in available federal and state grants.
The REP now has just over 3,800 participants with annual revenue of approximately $280,000. As of December 4, 2025, the fund's cash balance was $289,543.30.
DISCUSSION:
Participation in the REP has steadily increased over the years, supported by a change made in 2024 which requires grant recipients to remain in the program for a minimum of five years after receiving a grant. This change ensures that program membership and revenue remain ...
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