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HomeMy WebLinkAbout2022-10-25 ENR Packet AGENDA CITY OF MAPLEWOOD ENVIRONMENTAL AND NATURAL RESOURCES COMMISSION Tuesday, October 25, 2022 7:00 p.m. Maplewood City Council Chambers 1803 County Road B East Call to Order Roll Call Approval of Agenda Approval of Minutes: September 19, 2022 New Business Resolution of Appreciation for Ann Palzer Wetland Conservation Act Delegation – Capitl Region Watershed District Unfinished Business Climate Action Financing and Project Priorities Final Report Visitor Presentations Commissioner Presentations Staff Presentations (oral reports) September 26, 2022, City Council Meeting – Update on Xcel Energy Natural Gas Plant Wetland Buffer Waiver November 14, 2022, City Council Meeting – Resolution of Appreciation for Ann Palzer and Renewable Energy Ordinance November 21, 2022, ENR Meeting and Thanksgiving Holiday Update on ENR Commission Vacancies Adjourn Agenda Item 4.a. MINUTES CITY OF MAPLEWOOD ENVIRONMENTAL AND NATURAL RESOURCES COMMISSION MONDAY, SEPTEMBER 19, 2022 7:00 P.M. 1.CALL TO ORDER Acting Chairperson Bryan called a meeting of the Environmental and Natural Resources Commission to order at 7:03p.m. 2.ROLLCALL Emma Broadnax, CommissionerPresent Rebecca Bryan, Acting ChairpersonPresent Benjamin Guell, CommissionerAbsent Mollie Miller, CommissionerPresent Ann Palzer, CommissionerPresent Ted Redmond, CommissionerPresent Staff Present Shann Finwall, Environmental Planner 3.APPROVAL OF AGENDA Commissioner Palzermoved to approve the September 19, 2022, ENR Commission agenda. Seconded by Commissioner Miller Ayes – All The motion passed. 4.APPROVAL OF MINUTES a.Approval of the August 15, 2022, ENR Commission minutes. Commissioner Redmondmoved to approve the August 15, 2022, ENR Commission meeting minutes. Seconded by Commissioner BroadnaxAyes – Commissioners Broadnax, Bryan, Palzer, Redmond Abstain – Commissioner Miller The motion passed. 5.NEW BUSINESS a.Wetland Buffer Waiver, Xcel Energy, 1555 Century Avenue North Environmental Planner Finwall presented the report. Brian Sullivan of Xcel Energy updated the Commission on the new wetland buffer plantings and tree replacementplans. Mary Newcomb, 2600 Montana Avenue, had the following questions and comments: Appreciate the changes made to the wetland buffer and tree mitigation plans. What is the depth of the detention pond? (Brian Sullivan stated that he would check on the depth of the pond.) Is Xcel Energy concerned that wildlife will get stuck in the pond? (Brian Sullivan stated Xcel Energy wouldconsider a fencearound the pond.) Significant trees on the west side of the pond should be preserved. (Brian Sullivan stated that 17 significant trees will be preserved on the west side of the pond.) The Commissioners had the following questions and comments: What will spill into the detention pond and how? (Brian Sullivan clarified that the detention pond is designed to capture any natural gas that spills. This would be a very rare situation, but is needed for emergency.) Overall the Commission feels better about the level of detail that has gone into the revised wetland buffer and tree mitigation plans. What about wildlife in the detention pond? (Brian Sullivan stated he wouldreview the depth of the pond and Xcel Energy would consider a fence around the pond.) Commissioner Redmond made a motion to recommend approval of the wetland buffer waiver for the expansion of Xcel Energy’s gas plantat 1555 Century Avenue North. Seconded by Commissioner Palzer Ayes All. The motion passed. Kirstin Serslundof Xcel Energy introduced herself to the Commission, thanked them for their review and approval of the project, and requested that the project be expedited so Xcel Energy can begin as soon as possible. Environmental Planner Finwall stated thatthe project will goto the City Council on September 26, 2022, for final review. 6.UNFINISHED BUSINESS None 7. COMMISSIONERPRESENTATIONS None 2 8. STAFF PRESENTATIONS Environmental Planner Finwall updated the Commission on the following: a.Harvest Park Native Seed Garden – Seed Harvesting Program (Tuesday, September 27, 6 to 7 p.m.) b.Resilient Cities and Communities – City/County Climate Action Conference (October 6) c.Reschedule October 17, 2022, ENR Commission Meeting Due to Staff Conflict (Suggested Dates Tuesday, October 25 or Wednesday, October 26) 9. ADJOURNMENT Commissioner Broadnax made a motion to adjourn the meeting. Seconded by Commissioner Redmond Ayes – All The motion passed. Acting Chair Bryan adjourned the meeting at 7:43 p.m. 3 Agenda Item .. ENVIRONMENTAL & NATURAL RESOURCES COMMISSION STAFF REPORT Meeting Date October 25, 2022 REPORT TO: Environmental and Natural Resources Commission Shann Finwall, AICP, Environmental Planner REPORT FROM: PRESENTER: Shann Finwall, AICP, Environmental Planner AGENDA ITEM: Resolution of Appreciation for Ann Palzer Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: When citizen members end their time of service on a commission, the City considers adoption of a resolution of appreciation recognizing the individual for their time committed to serving Maplewood. Recommended Action: Motion to approve a Resolution of Appreciation for Ann Palzer, Environmental and Natural Resources Commissioner. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment The City appreciates its citizen volunteers and provides recognition for members upon resignation. Ann Palzer was a long-time Commissioner on the Environmental and Natural Resources Commission. During her term, Ms. Palzer has helped guide important environmental policies and ordinances in the City. Background: Ann Palzer resigned as a member of the Environmental and Natural Resources Commission on September 30, 2022. Ms. Palzer served on the Commission for eleven years and one month, from August 25, 2011 to September 30, 2022. Attachments: 1.Resolution of Appreciation for Ann Palzer, Environmental and Natural Resources Commissioner Attachment RESOLUTION OF APPRECIATION WHEREAS, Ann Palzer has been a member of the Maplewood Environmental and Natural Resources Commission for eleven years and one month, serving from August 25, 2011 to September 30, 2022. Ms. Palzer has served faithfully in those capacities; and WHEREAS, during her term on the Environmental and Natural Resources Commission, Ms. Palzer helped guide many important City environmental ordinances and policies including: Living Streets Policy, Renewable Energy Ordinance, implementation of the Maplewood Trash Plan, Solid Waste Ordinance, Tree Ordinance, Maplewood Trash and Recycling Request for Proposals, Mississippi River Corridor Critical Area Ordinance, Urban Agriculture Ordinance, Stormwater Management Ordinance, 2040 Comprehensive Plan, Maplewood Nature Center Master Plan, Climate Adaptation Plan and Implementation Strategies; and WHEREAS, the Environmental and Natural Resources Commission and City Council have appreciated her experience, insights and good judgment; and WHEREAS, Ms. Palzer has freely given of her time and energy, without compensation, for the betterment of the City of Maplewood; and WHEREAS, Ms. Palzer has shown dedication to her duties and has consistently contributed her leadership and efforts for the benefit of the City. NOW, THEREFORE, IT IS HEREBY RESOLVED for and on behalf of the City of Maplewood, Minnesota, and its citizens that Ann Palzer is hereby extended our gratitude and appreciation for her dedicated service. Passed by the Maplewood City Council on ____________________________ __________________________________________ Marylee Abrams, Mayor Attest: ____________________________________________ Andrea Sindt, City Clerk Agenda Item 5.b. STAFF REPORT eeting Date October 25, 2022 REPORT TO: Environmental and Natural Resources Commission REPORT FROM: Shann Finwall, AICP, Environmental Planner PRESENTER:Shann Finwall, AICP, Environmental Planner AGENDA ITEM: Wetland Conservation Act Delegation –Capitol Region Watershed District Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: The Minnesota Wetland Conservation Act of 1991 requires Local Government Units to implement the rules and regulations promulgated by the Board of Water and Soil Resources pertaining to wetland draining, filling and excavation. Minnesota Rules 8420.0200, Subpart 1, Item E allows a city to delegate implementation of chapter 8420 and the act to another governmental entity by the passage of a resolution. Recommended Action: Motion to recommend approval of the attached resolution regarding the administration of the Minnesota Wetland Conservation Act delegating Capitol Region Watershed District as the Local Government Unit. Fiscal Impact: Is There a Fiscal Impact?NoYes, the true or estimated cost is $0 Financing source(s):Adopted BudgetBudget ModificationNew Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment Delegating Capitol Region Watershed District as the Local Government Unit is consistent with the delegation of the City’s other two watershed districts. Capitol Region Watershed District has the expertise and resources to implement the rules and regulations promulgated by the Board of Water and Soil Resources pertaining to wetland draining, filling and excavation. Background: Wetland Conservation Act The purpose of the Wetland Conservation Act (WCA) is to: 1. achieve no net loss in the quantity, quality, and biological diversity of Minnesota's existing wetlands, increase the quantity, quality, and biological diversity of Minnesota's wetlands by restoring or enhancing diminished or drained wetlands; and 2. avoid direct or indirect impacts from activities that destroy or diminish the quantity, quality, and biological diversity of wetlands; and 3. replace wetland values where avoidance of activity is not feasible and prudent. Local Government Units (LGU) administer the WCA. In Maplewood, the LGU is the City Council and their delegates. LGUs are responsible for making decisions on applications made under the Wetland Conservation Actincluding wetland delineations andreview, no net wetland loss determination, construction activities that impact wetlands, etc. The LGU must provide knowledgeable and trained staff with expertise in water resource management to manage the program or secure a qualified delegate. Watershed Districts There are three watershed districts located within Maplewood’s boundaries – Capitol Region, Ramsey-Washington Metro, and Valley Branch. The attached wetland map identifies the boundaries of each watershed district in Maplewood. The portion of the Capitol Region Watershed District (CRWD) located in Maplewood is generally on the City’s west side, west of McMenemy Road, south of County Road B, east of Rice Street, and north of Larpenteur Avenue. Capitol Region Watershed District Maplewood and its staff are currently responsible for making decisions on the WCA within the portion of the City located in the CRWD including wetland delineations and review, no net wetland loss determination, construction activities that impact wetlands, etc. Maplewood has qualified staff to administer the program; however, there are no wetland specialists on staff. CRWD has the expertise and resources to implement the rules and regulations promulgated by the Board of Water and Soil Resources. They adopted water quality and stormwater management rules in 2006 and issue permits for: 1) Stormwater Management; 2) Flood Control; 3) Wetland Management; 4) Erosion and Sediment Control; 4) Illicit Discharge and Connection. Additionally, CRWD has completed a 2021 – 2030 Watershed Management Plan that guides their actions in a coordinated, thoughtful, and effective manner. Throughout the execution of the Plan, CRWD will incorporate the following themes into its operations, programs, and projects: 1) Bring Water Back; 2) Rain as a Resource; 3) Climate Change and Resilience; 4) Community Equity and Engaging Underrepresented Groups; 5) Recreation; 6) Quality of Life; 7) Partnerships; 8) Innovation; and 9) Adaptive Management. Maplewood Wetland Ordinance Maplewood’s wetland ordinance is more restrictive than the CRWD rules in many areas, including wetland buffer requirements. CRWD has a 25-foot minimum buffer required around wetlands, while Maplewood has a 50 to 100-foot minimum buffer depending on wetland classification. The LGU delegation would not impact the City’s ability to administer the wetland ordinance, but would create consistency with the ordinance which refers to the “applicable watershed district” in several areas. The LGU delegation would not change how Maplewood and CRWD issue permits. CRWD would do all WCA noticing and paperwork, which would support permitting for both organizations. The benefits for the City include less paperwork/workload related to wetlands, provides consistency 2 between all areas of the City, and makes the CRWD portion of the City consistent with the City wetland ordinance. Local Government Unit Designation The Environmental and Natural Resources Commission should make a recommendation on the delegation of the LGU to CRWD. The delegation would authorize CRWD to act as the LGU for the portion of their watershed district located in Maplewood in order to administer the WCA. Attachments: 1. Maplewood Wetland Map 2. Capitol Region Watershed District Map 3. Map of Area Included in the Local Government Unit Designation to Capitol Region Watershed District 4. Resolution Regarding the Administration of the Minnesota Wetland Conservation Act Links: 1. Capitol Region Watershed District a. Management Plan (https://www.capitolregionwd.org/watershed-management-plan/) b. Rules (https://www.capitolregionwd.org/permits/watershed-rules/ 3 Attachment 1 VADNAIS HEIGHTS WHITE BEAR LAKE Valley Branch Watershed LITTLE CANADA Silver Lake NORTH ST PAUL Kohlman Lake Gervais Lake LITTLE CANADA Keller Lake Oehrline Lake NORTH ST PAUL Wakefield Lake Round Lake Lake Phalen Ramsey-Washington ST PAUL ST PAUL Capitol Region Metro Watershed Watershed City of Maplewood Wetland Classifications Beaver Lake A on December 14 , 2009 Modified on June 25, 2012 Modified on August 13, 2012 Legend Wetland Classification Buffers Manage A (100') Tanner's Lake Manage B (75') Manage C (50') Storm Water Pond (10' building setback) Wetland Classification for Wetlands Adjacent to Lakes Buffers Lakes Manage A (75') Beaver & Kohlman Manage B (50')Oehrline, Spoon & Wakefield Manage C (50') Average wetland buffers may apply. Refer to the City Wetland Ordinance Watershed Boundary City Parks City Preserves Carver County Parks Lake Regional Parks Created by: C.Bergo C:\\GIS\\Maps\\Wetlands Ordinance NEWPORT June 20th, 2013 Attachment 2 Capitol Region Watershed District Map Attachment 3 Attachment 4 A RESOLUTION REGARDING THE ADMINISTRATION OF THE MINNESOTA WETLAND CONSERVATION ACT WHEREAS, the Minnesota Wetland Conservation Act of 1991 (WCA) requires local government units (LGUs) to implement the rules and regulations promulgated by the Board of Water and Soil Resources (BWSR) pertaining to wetland draining, filling and excavation; and WHEREAS, Minnesota Rules, chapter 8420 have been adopted by BWSR in accordance with the rulemaking provisions of Minnesota Statutes, chapter 14, for the purpose of implementing WCA; and WHEREAS, Minnesota Rules 8420.0200, Subpart 1, Item E allows a county, city, or town to delegate implementation of chapter 8420 and the act to another governmental entity by the passage of resolutions by both parties; and WHEREAS, both parties must provide notice to BWSR, the Department of Natural Resources, and the Soil and Water Conservation District of the delegation, including a copy of the resolution and a description of the applicable geographic area, within 15 business days of adoption of the resolution. THEREFORE, BE IT RESOLVED by the City of Maplewood City Council that the authority and administrative responsibility to implement WCA as the LGU within the legal boundaries of the City of Maplewood is delegated to Capitol Region Watershed District as of _______________, 2022 in accordance with Minnesota Rules, Chapter 8420. Passed by the Maplewood City Council on ____________________________ ______________________________________ Marylee Abrams, Mayor Attest: ____________________________________________ Andrea Sindt, City Clerk Agenda Item 6.a. ENVIRONMENTAL & NATURAL RESOURCES COMMISSION STAFF REPORT Meeting Date October 25, 2022 REPORT TO: Environmental and Natural Resources Commission REPORT FROM: Shann Finwall, AICP, Environmental Planner PRESENTER:Shann Finwall, AICP, Environmental Planner AGENDA ITEM: Climate Action Financing and Project PrioritiesFinal Report Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: The City’s Climate Adaptation Plan is an organized way for the City to contribute to solving the climate crisis while helping residents and businesses create improved resilience to the current and future impacts and risks of climate change. Recommended Action: Motion to recommend approval of the Climate Action Financing and Project Priorities Final Report. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment The Climate Adaptation Plan outlines several implementation strategies including identifying specific priority climate actions to implement yearly and the creation of a stable climate action financing mechanism to fund the projects. Background: Two implementation strategies outlined in the Climate Adaptation Plan call for the creation of a yearly list of climate action project priorities, and a short and long-term process for budgeting for those priorities. The Maplewood Green Team and the Environmental and Natural Resources Commission serve as the City’s Climate Support and Oversight Committees. The Committees have been reviewing possible climate action project priorities and budget since May 2022. The result of that review is the final Climate Action Financing and Project Priorities Report (attached). The report outlines the following: 1. Maplewood Energy and Climate Policies and Goals 2. Climate Project Priorities 3. Climate Action Financing 4. Climate Funding Strategies in Other Cities The Environmental and Natural Resources Commission is asked to review the report for any final edits, and make a motion recommending approval. The report will be presented to the City Council in November or December 2022 for consideration. Attachments: 1. Climate Action Financing and Project Priorities Final Report 2 Attachment Climate Action and Project Priorities Report October 2022 Background The City of Maplewood strives to improve upon the natural and built environment by using best practices for sustainability. On June 23, 2008, the City Council adopted the U.S. Mayors Climate Protection Agreement. The Agreement commits the City to reducing emissions and pollution in City operations and the community. In December 2010, the City began engagement in the Minnesota Greenstep Cities program, s sponsored by the Minnesota Pollution Control Agency. Greenstep Cities is a challenge, assistance, and recognition program supporting cities in achieving sustainability and quality-of- life goals. In August 2019, the City Council adopted the 2040 Comprehensive Plan. The Sustainability chapter of that plan established the following energy and climate goals: Goal 1: The City will follow the state energy goal guidelines of reducing greenhouse gas emissions to 20 percent of the City’s 2015 baseline levels by 2050 (an 80 percent reduction). The City will establish interim goals every 5 to 10 years to assure City emission reductions track against the primary goal outlined above, and to adjust policies and strategies as needed. Future interim goals will be established by the City at the completion of the first interim timeframe. Goal 2: The City will encourage and support renewable energy. The City will obtain a minimum of 50 percent of all electric energy from renewable sources by 2040. This includes having a minimum of 20 percent in on-site solar photovoltaic generation within the City, with the balance being met through Xcel Energy’s 31.5 percent renewable portfolio requirement. City facilities will be powered by 100% renewables by 2040. I n May 2021, the City Council adopted the Climate Adaptation Plan (CAP). The CAP includes an implementation framework designed to achieve community-wide goals for climate adaptation and resilience. It is organized around a unifying framework of eight sections: 1) Health and Safety, 2) Extreme Heat and Weather, 3) Air Quality, 4) Flooding and Water Quality, 5) Greenspace and Ecosystem Health, 6) Local Food and Agriculture, 7) Climate Economy, and 8) Adaptation Capacity. Each sector has over-arching strategic goals and detailed actions for implementation. Two implementation strategies outlined in the CAP call for the creation of a yearly list of climate action project priorities, and a short and long-term process for budgeting for those priorities. The Maplewood Green Team and the Environmental and Natural Resources Commission serve as the City’s Climate Support and Oversight Committees. The Committees have researched the subjects since May 2022. The Climate Action and Project Priorities Report is a culmination of that research and recommendations. The City began measuring its City-wide and City operations greenhouse gases (GHG) in 2015. All future GHG assessments are measured by this baseline year. The current GHG assessment (reporting year 2020) reflects reductions in GHG City-wide and City operations. City-wide GHG is reduced by 33% from baseline. The numbers are driven largely through the cleaning of the electric grid, significant increases in corporate purchase of renewable energy through Xcel Energy (presumably 3M), and reduced vehicle miles traveled. City operations GHG is reduced by 45%. These numbers are driven largely through the cleaning of the electric grid, street light energy consumption reduction, and the reduction in staff travel commutes due to staff working from home during the Covid-19 shutdowns. 2 Climate Project Priorities The Climate Committees researched opportunities for climate project priorities within our City operations for year one. They recommend the City show progress at the local level in order to develop a shared vision that guides residents on their individual and collective contributions. Maplewood should lead by example, ensuring our City operations are as green as possible. The Greenhouse Gas Assessment (GHG) reflects that transportation and buildings are the biggest contributor to GHG in our City operations. Based on this information the Committees are recommending the following Climate Project Priorities to be implanted as soon as possible, specifically budgeted in the 2023 City budget and/or grant opportunities: 1. Climate Mitigation Plan: Undertake a Greenhouse Gas mitigation planning effort to map climate mitigation strategies as a companion to the Climate Adaptation Plan. The strategies will assist the City in identifying short and long-term climate action projects that will reduce GHG, including strategies that can be taken at a City-operation level. In early 2022, the City applied for a Minnesota Pollution Control Agency (MPCA) resiliency grant to complete the study. The MPCA did not award the City the grant funds. The City should continue to look for grant opportunities and other funding strategies for the creation of a Climate Mitigation Plan. Budget - $32,000 estimated 2. City Facility Rooftop Solar - Feasibility and Funding Study and Install: There are two new City buildings where rooftop solar is most feasible – Wakefield Park Community Building and the new North Fire Station. The City should review solar and financial options for installing solar on these two buildings in the short term. There are two ways for the City to finance rooftop solar on these buildings: 1) outright purchase - the City owns the equipment and retains the renewable energy credits; and 2) power purchase agreement - the City leases the equipment and the renewable energy credits go to the utility company. Long-term the City should review opportunities for adding solar on other City buildings. Budget – Study - $0 Phase I Solar Projects – Purchase – Wakefield - $80-$100,000 estimated for 30 kWh of solar North Fire Station - $425,000 estimated for 200,000 – 225,000 kWh of solar Solar Agreements – Options Vary 3. City Fleet Study: The City should conduct a study to determine how to create a greener fleet. The study will review and make recommendations on the City’s existing fleet and usage, management and maintenance strategies, and a timeframe for converting to more fuel efficiency and electric/hybrid vehicles. The City has had fleet studies conducted in the past. But never a study to determine how the vehicles can be converted to a greener fleet over time. Budget – Study - $30,000 estimated 3 4. Electric Vehicle Charging Stations Feasibility and Funding Study and Install: There are three new City facility parking lots where electric vehicle charging stations are most feasible – Wakefield Park Community Building (constructed to be electric vehicle ready), the new North Fire Station, and a future parking lot at Goodrich Park. The City should review electric vehicle charging station options at these parking lots in the short term. In addition, the City should conduct a City-wide charging station study to determine existing locations, areas of need, and funding strategies. Budget – Study - $0 Phase I EV Stations - $12,000 estimated install cost (infrastructure upgrades not included) 4 Climate Action Financing Examples A climate funding strategy would create a stable climate action financing mechanism to fund yearly projects. Following are examples of climate action financing options researched by the Committees: 1. Stormwater Fees: Maplewood collects an environmental utility fee based on the amount of impervious surface on each property and the impact to the City’s drainage system. The fund pays for stormwater management including street sweeping, storm pipe maintenance, and wetland/ponding area maintenance. The fund could also cover tree planting, tree maintenance, and ongoing management of trees that assist with capturing stormwater. It is unclear if the fee could cover other resiliency actions. 2. Resilience Penny Property Tax: Yearly the City Council assesses the need for an increase or decrease in the City’s property tax based on the budget needed to cover the cost of running the City. The City could approve a property tax increase to cover the cost of resiliency projects needed to adapt to changes in our climate. 3. Capturing Energy or other Sustainability Savings: In May 2018, the City entered into a 20-year community solar garden agreement. It generates approximately $8,200 of energy savings yearly. The savings currently offset the City’s electric bills. These funds could be set aside yearly for resiliency projects. 4. Utility Franchise Fees: The City collects franchise fees from Xcel Energy to recover the cost to maintain and operate streets, sidewalks, and trails. The fee is collected in lieu of other permits or fees for the use of the City’s right-of-ways. Xcel Energy passes those fees onto its customers. Franchise fees could also be used to help the City’s climate and energy efforts. 5 Climate Funding Strategies in Other Cities Following are examples of four climate-funding strategies implemented in three cities: 1. Minneapolis: The City of Minneapolis uses franchise fees to match grants for energy improvements for residential or commercial customers, and to buy down loans for customers in “Green Zones” (with lower-than-average household income). The energy improvements include clean energy commitments and funding for new projects related to renewable energy, energy storage, and more. 2. Edina: The City of Edina created a Conservation and Sustainability Fund to fund sustainability projects within City operations. • Established September 1, 2015 • Dedicated funding source for the City’s conservation and sustainability functionality and programs • $950,000 annually • Utility franchise fees • Average residential customer pays $1/month in franchise fees • Funding Opportunities o Capital improvements to City-owned buildings and equipment that improve energy conservation, efficiency or performance for reducing the City's production of GHG. o Municipal fleet efficiency and electrification. o Legal and consulting services directly related to accomplishing the City's conservation and sustainability work plan or capital improvements. o Staffing and personnel operational costs to accomplish the City’s goals, objectives and work plan related to energy conservation and sustainability. Edina’s Climate Action Fund is a cost share fund designed to encourage private investment in Climate Action Plan Goals. • Established 2022 • 2022 Budget $100,000 • Utility franchise fee • Residential and business cost share fund to encourage private investment in Climate Action Plan Goals • Cost Share Opportunities o Energy efficiency programs Residential - 50% utility rebate match up to $1,000 and up to $1,000 cost share for electrification/fuel switching projects Commercial and multifamily - 50% utility rebate match up to $2,000 and up to $2,000 cost share for electrification/fuel switching projects o Solar installation 4% total cost share with participation in the Federal Investment Tax Credit 6% total cost share with commercial properties that include a community solar garden for Edina resident subscriptions in their rooftop solar installation 6 3. St. Louis Park: The Climate Investment Fund is a cost share fund to encourage private investment in Climate Action Plan Goals. • Established January 2022 • Residential and business cost share fund to encourage private investment in Climate Action Plan Goals • $800,000 2022 to 2024 Funding o $500,000 in excess fund balance from the 2021 general fund budget o Two additional $150,000 transfers into the fund were made in 2022 from the development fund • Funding levels fluctuate • Fund balance rolls over from year to year • Established January 2022 • Residential and business cost share fund to encourage private investment in Climate Action Plan Goals • $800,000 2022 to 2024 Funding o $500,000 in excess fund balance from the 2021 general fund budget o Two additional $150,000 transfers into the fund were made in 2022 from the development fund • Funding levels fluctuate • Fund balance rolls over from year to year 7