Title
Resolution to Accept Grant Funds from the Michigan Public Service Commission’s Department of Licensing and Regulatory Affairs for Bryant Neighborhood Decarbonization Work and Appropriate Funds to the Office of Sustainability and Innovations ($3,115,600.00) (8 Votes Required)
Memorandum
Attached for review and consideration is a resolution to authorize acceptance and appropriation of grant funding from the Michigan Public Service Commission’s Department of Licensing and Regulatory Affairs (“MPSC”) under its Renewable Energy and Electrification Infrastructure Enhancement and Development grant program to support neighborhood decarbonization efforts in the Bryant neighborhood. Specifically, this grant will help the City make significant energy, electrification, health, safety, and comfort improvements in up to 50 income-qualified homes. Authorized grant uses include deep energy efficiency improvements, electric panel upgrades, beneficial electrification improvements, and the installation of solar panels and energy storage systems. Heating and cooling upgrades will not be covered by this grant award because the City is waiting on news regarding its district geothermal grant application submitted in October 2024 to the U.S. Department of Energy.
To demonstrate the impact of this MPSC grant award, the City will track the following:
• Number of nearly carbon neutral households in the Bryant neighborhood (goal is 50 by August 2026 that have reduced their energy spend and annual greenhouse gas emissions by 50% from baseline levels).
• Number of residents employed in high-road green jobs (goal is 4 FTE’s; 2 residents job shadowing; and 3 residents interning on the project).
• Number of residents taking advantage of wealth-building strategies (goal is 20 residents by August 2026 have put 20% of project-based energy savings into wealth building techniques).
• Number of neighborhood ambassadors trained (goal is 5 residents).
• Resident input regarding the impact of improvements, including any changes to health, finances, or quality of life associated with project-based improvements.
• Number of communities looking to replicate project (goal is at least 3 communities are replicating the project).
In addition to funding that will support physical decarbonization and health improvements in homes, the grant award also provides $5,600.00 in funding to support stipends for residents to participate in the Resident Advisory Committee and to participate in public engagement events. As such, this resolution is seeking authorization for the Office of Sustainability and Innovations to use $5,600.00 of the grant award as stipends for project-related activities.
The grant award also includes $50,000.00 in funding for Dr. Lesli Hoey from the University of Michigan and her graduate students to provide evaluation services for this work, including conducting pre- and post-evaluation assessments with residents of the Bryant neighborhood to ensure the project is aligned with residents’ needs and desires. Dr. Hoey’s evaluation will be used to inform any necessary project modifications.
Budget/Fiscal Impact: The grant award from the MPSC will cover the full costs and expenditures related to this project. The City will provide staff time as an in-kind match, but no additional funding is requested or required.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Director
Reviewed by: Kimberly Buselmeier, Interim Chief Financial Officer
Valerie Jackson, Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City’s A2ZERO Plan calls for massive efforts to decarbonize buildings throughout the City of Ann Arbor;
Whereas, The City’s Office of Sustainability and Innovations has been working for three years with Community Action Network and the residents of the Bryant neighborhood to identify solutions and actions that will help make the neighborhood one of the first carbon neutral neighborhoods in the country;
Whereas, Through these engagements, the City’s Office of Sustainability and Innovations has identified a series of necessary home improvements that are required to help improve the health, safety, and sustainability of homes in the Bryant neighborhood;
Whereas, The City’s Office of Sustainability and Innovations submitted a grant application to the Michigan Public Service Commission’s Department of Licensing and Regulatory Affairs under the Renewable Energy and Electrification Infrastructure Enhancement and Development grant program to support the implementation of decarbonization solutions in up to 50 income-qualified homes in the Bryant neighborhood;
Whereas, The Michigan Public Service Commission’s Department of Licensing and Regulatory Affairs selected the City’s grant application for award and has approved a total assistance amount of $3,115,600.00 to accomplish the tasks in the City’s application; and
Whereas, This grant award would support physical improvements in up to 50 residential homes in the Bryant neighborhood, as well as the administration of stipends to support 8 to 10 residents participating in a Resident Advisory Committee and stipends to compensate people for participating in public engagement activities related to this project;
RESOLVED, That City Council accept a grant award of $3,115,600.00 from the Michigan Public Service Commission’s Department of Licensing and Regulatory Affairs;
RESOLVED, That City Council appropriate $3,115,600.00 to the Sustainability and Innovations FY25 Major Grants Program Fund expenditure budget with the source of funding being the grant award from the Michigan Public Service Commission’s Department of Licensing and Regulatory Affairs;
RESOLVED, That City Council approve a Grant Agreement with the Michigan Public Service Commission’s Department of Licensing and Regulatory Affairs for these funds, following approval as to form by the City Attorney and as to substance by the City Administrator;
RESOLVED, That all amounts herein are without regard to fiscal year; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution.