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Item 1.G.
 
City Council Regular
Date: 07/22/2024
Title: Acceptance of US Department of Energy Efficiency and Conservation Block Grant Funds
Presented by: Ted Wilson, Grants Coordinator
Department: City Hall Administration
Presentation: No
Legal Review: Not Applicable
Project Number: N/A

RECOMMENDATION

Staff recommends that Council accept up to $165,490 in rebates from the U.S. Department of Energy (DOE) to recoup general fund dollars spent on irrigation pumps and controllers at three City parks.

BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)

The U.S. Department of Energy (DOE) received funding from the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) to fund the EECBG program. $550,000,000 was made available to communities across the nation. The City of Billings is eligible to receive up to $165,490 in equipment rebates. The City was required to apply for the funding by submitting eligible projects that required installation of energy efficient equipment. After several months of examination, it was decided that a Parks project to replace water pumps and controllers for three park irrigation systems would be the best fit for the EECBG program. The parks to receive the new equipment are South, Central, and Optimist. All are located in historically disadvantaged areas according to Census data - this was an element of the application that made choosing a project complicated, as most projects exceed our allotted rebate, or the projects didn't directly serve disadvantaged neighborhoods. It is estimated that each park will use 30% less electricity and 30% less water with the new pumps and controllers installed. The project should be completed by fall 2024, and rebates received by the end of fiscal 2025.

ALTERNATIVES

City Council may:
  • Approve; or,
  • Not Approve

FISCAL EFFECTS

As this is a rebate program, financial benefit to the City will take a while to materialize. However, Parks will receive rebates on the pump and controller equipment installed at Optimist, Central, and South Parks - up to $165,490, by the end of fiscal year 2025. It is estimated that Parks will also save 30% on electricity and 30% on water usage upon installation, saving funds in the long term.