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IV.6. Letter of Commitment for EECBG Application; Imihy Bean CITY OF HOPKINS City Council Report 2023-085 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: PeggySue Imihy Bean, Special Projects and Initiatives Manager Date: August 15, 2023 Subject: Letter of Commitment for EECBG Application _____________________________________________________________________ RECOMMENDED ACTION MOTION TO provide a letter of commitment for the City’s application to the Department of Energy Efficiency and Conservation Block Grant Program. OVERVIEW In 2023, the Department of Energy (DOE) issued a funding opportunity announcement for both formula and competitive funding to local governments, states and tribes seeking fund programs which cut carbon emissions, improve energy efficiency or reduce energy uses. The City of Hopkins was not eligible for formula funding and instead pursued an application for competitive funds which could be used to support the Hopkins Climate Solutions Fund for the next 24 months, starting in 2024. In June, the City submitted a concept paper to the DOE and was encouraged to submit a full application. With the assistance of Local Climate Solutions, the city’s sustainability consultant, the City is pursuing a full application in the amount of $450,000 to support grant funding to residents and businesses, as well as offset some administrative and consultant costs to administer the program. The City is also proposing collaborating with adjacent cities who also offer green cost share program, as well as the State Department of Commerce to create a working group which will work collaboratively to ensure these program operate effectively and in alignment with federal programs like the Inflation Reduction Act. At this time, Xcel Energy, Local Climate Solutions and the Cities of Edina, Eagan and St. Louis Park have offered letters of support for our funding request. Tonight, we ask the Council to sign a letter of support for this grant request. SUPPORTING INFORMATION • Letter of Commitment for EECBG Administration City of Hopkins 1010 First Street South  Hopkins, MN 55343-3435  Phone: 952-935-8474  Fax: 952-935-1834 Web address: www.hopkinsmn.com Partnering with the Community to Enhance the Quality of Life  Inspire  Educate  Involve  Communicate  August 15, 2023 Dear Secretary Granholm, I am writing on behalf of my community and the City Council of the City of Hopkins to express our commitment to the Hopkins Climate Solutions Fund cost-share program. This program is an important mechanism for our community to help its residents and businesses transition to clean energy through an incentives-based approach which combines grants with utility rebates and Federal Inflation Reduction Act dollars. We acknowledge that the time is now to invest in making an impact on our community's greenhouse gas emission reduction , assist residents with energy savings all while investing in renewable and clean energy technologies. Funding from the Department of Energy will help further catalyze our initial investment in our Hopkins Climate Solutions Fund, making a more substantial and sustained impact over the next several years. As a very racially diverse community, with nearly 40% of our population identifying as non-white, we recognize the impending effects of climate change on these populations . We are committed to leveraging this program to effectively engage with, and support our BIPOC and low -income communities to be resilient to the effects of climate change. In addition to the direct improvements that can be made in our community, we also have confidence that this investment from the Department of Energy will help support the growing clean energy workforce in our region, as projects funded by this program will have upstream impacts in creating demand for clean energy technologies as well as the labor needed to install and maintain them. We believe that this investment will not only benefit our residents through cost savings, but help stimulate additional dollars spend on clean technology that may not have otherwise been invested. Additionally, we are committed to utilizing this opportunity to convene with other Minnesota cities and the state department of commerce to find ways that all communities can improve the delivery of our program. Our community is excited to be a part of a small, but growing network of cities offering incentives to businesses and residents to improve efficiency and electrify energy -using technologies. In conclusion, we are grateful for the opportunity to work with the Department of Energy on making our community resilient and prepared in the face of a changing climate. Sincerely, Mayor Patrick Hanlon City of Hopkins