City Council Agenda and Packet 2023 10 10 SP

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Funding & Implementation I Funding Options Funding Options Funding is a critical piece of any decarbonization roadmap to ensure an implementation plan is successfully executed. Over the course of the project, several grant and stimulus funding opportunities were researched and identified along with capital and financing streams that are applicable to the implementation of the City's roadmap. In addition, interviews with the finance team were conducted, and funding workshops were held in March and May of 2023. Below is a list of applicable funding sources identified to help the City fund and implement the recommendations within the Internal Decarbonization Roadmap. All information below is based on research conducted during the year of the study. Grants and stimulus funding is likely to vary in future years. Grants and Stimulus Funding* • Colorado Public Building Electrification Grant" • Colorado High Efficiency Heating & Appliances Program • Colorado Department of Local Affairs Grants Energy and Mineral Impact Grant Renewable Energy Grant Climate Resiliency Challenge" • State of Colorado Geothermal Grant • Congressionally Directed Spending" • FEMA Building Resilient Infrastructure and Communities (BRIC) grant • Inflation Reduction Act • Investment Tax Credit - Direct Pay for renewable energy systems, battery storage • Grant programs for electric vehicles and electric vehicle charging • US Department of Energy grants for municipalities • Xcel rebates • Mow Down Pollution Grant** • Charge Ahead Colorado Grant** • Colorado Fleet -Zero Emission Resource Opportunity ("Fleet -Zero")`* *The key to successful grant applications: the full application and submitted project needs to move the needle, be "shovel ready', compelling and create benefits for the community. ** Grants currently being applied for during the 2023-24 fiscal year for project implementation. Capital and Internal Funding Allocate dedicated stream of capital to sustainability during bi-annual budget cycle Internal borrowing from enterprise funds with additional capital availability. City has experience with this method of funding projects • Some funds are heavily restricted Diverted operational/Capital Improvement Plan dollars Dedicatedsustainabilitytax - with % earmarked towards municipal& community sustainability projects Investigated in 2023 through Open Space tax extension discussions. Recommend re -investigating in future years. J Financing Options • Tax Exempt Lease Purchase - an installment purchase, conditional sale or lease by a public agency using the installed equipment as collateral and financed by an investor or bank. • Bond - debt obligation issued by a public entity using the loan for public projects, such as constructing buildings, highways, or renovations. • Certificates of Participation (COP)- is a type of financing where an investor purchases a share of lease revenues to secure financing for public sector projects. Energy Performance Contracting - a contracting and financing tool that leverages multiple sources of funding to construct energy savings projects for public sector agencies. Energy -as -a -service - a financing tool where a public agencies pays for an energy service without having to make any upfront capital investments and transfers ownership of the capital investment to a third party investor. Infrastructure -as -a -service - a financing tool where a public agencies pays for infrastructure via an on -going fee or lease payment without having to make any upfront capital investments and transfers ownership of the capital investment to a third party investor. CITY OF LOUISVILLE I FINAL REPORT V3 1 INTERNAL DECARBONIZATION PLAN 125