HomeMy WebLinkAboutTransmittal - 9/12/2024SALT LAKE CITY TRANSMITTAL
To:
Salt Lake City Council Chair
Salt Lake City Redevelopment Agency Chair
Start Date:
09/11/2024
Date Sent to Council:
09/12/2024
From:
Employee Name:
O'Malley, Monica
E-mail
monica.omalley@slc.gov
Department
Sustainability
Department Director Signature Chief Administrator Officer's Signature*
Director Signed Date
09/11/2024
Chief Administrator Officer's Signed Date
09/12/2024
Subject:
Notice of Donation Agreement with Solar Stewards
Additional Staff Contact:
Sophia Nicholas, Sustainability Deputy DirectorSophia.Nicholas@slc.gov | 801-535-7755
Presenters/Staff Table
Document Type*
Information Item
Budget Impact*
Yes
No
Budget Impact:
Recommendation:*
FYI
Background/Discussion (?)
Per the City’s Donation Policy, 3.60.040, the Sustainability Department is notifying the City Council of a Gift and Community Benefit
Agreement between DCR Group, d/b/a Solar Stewards, a Georgia limited liability corporation (“Solar Stewards”), and Salt Lake City
Corporation (the “Donation Agreement”). The agreement offers an innovative way to receive a series of donations while making use of
the renewable energy certificates (known as RECs) from the City’s solar installation on the Sorenson Multi-Cultural Center. If parties are
willing, RECs from future solar installations could be considered.
This agreement is for a five-year term and anticipates an annual donation of approximately $10,200 per year over three years, broken
into quarterly gifts. The agreement has a maximum cap of $100,000 over a five-year period, but that maximum is unlikely to be
realized.
The Sustainability Department led the development of the partnership, with guidance from the Attorney’s Office and Finance
Department.
Per the Donation Agreement and in compliance with the City Donation Policy, the donations will be used to support existing City goals
and projects to benefit environmental justice and resiliency. This includes supporting energy efficiency and solar energy for businesses
and residents; bolstering the Air Quality Incentives Program; supporting the City’s established microgrant programs; or other identified
needs.
Background
According to the Environmental Protection Agency, a renewable energy certificate is a market-based instrument that represents the rights
to the environmental, social, and other non-power attributes of renewable electricity generation. RECs are issued when one megawatt-
hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource. RECs have existed since
1998 and have provided an important way to finance new renewable energy projects across the country—usually large, utility-scale ones.
Companies that have climate and sustainability commitments can then purchase RECs to support clean energy development and, in
doing so, claim that energy’s use to fulfill their own renewable energy goals.
Salt Lake City has installed distributed solar energy on over a dozen municipal facilities over the past 15 years but has not traditionally
gone to the trouble of generating RECs. Generating RECs typically requires a multi-step process involving the installation of a utility-
grade meter, registering the generating unit in a database called the Western Renewable Energy Generation Information System
(WREGIS), and pursuing certification through a program like Green-e. The labor and cost involved have historically outweighed the
benefits. However, the 115-kilowatt array on the Sorenson Multi-Cultural Center commissioned in 2020 presented a new opportunity due
to its relatively recent installation and the advent of a type of REC called a Social REC® by Solar Stewards, that offers more value for a
REC exchange.
Solar Stewards is a company that connects corporate buyers of RECs with partners in the non-profit, municipal, educational, and other
spaces that generate renewable energy and also have a community-facing mission. Social RECs® allow a business to support renewable
energy, while also investing in additional social benefits by paying a higher price for RECs. The additional amount is used to support an
organization’s work that directly benefits historically excluded communities and those on the front lines of climate change. This is the
donation component of the Donation Agreement and will provide the City with $60 per social-benefit REC (estimated to be the
equivalent of $10,200 per year, depending on how much the sun shines.) For businesses, investing in Social RECs®, allows them to
generate positive community impact, while also meeting voluntary or prescribed social and environmental responsibility goals.
The Sustainability Department is piloting this partnership as described in the Donation Agreement to determine if a certain subset of the
City’s renewable energy installations can generate a meaningful amount of investment back to the City to provide for a public purpose,
in addition to their evident climate benefits.
Please note that this partnership is listed as a Mayor Goal for 2024: Establish an Energy Equity Fund that is funded by Renewable
Energy Certificates generated on municipal facilities to support community-based air quality, energy equity, and microgrant projects.
Should the City Council wish to build upon this framework to direct future donations, clean energy tax credits, or other sources of funds
towards projects that provide direct public benefits, the Sustainability Department is happy to support the conversation.
Will the City Council need to hold a public hearing for this item?*
Yes
No
Public Process
Chief Administrator Officer's Comments