Title
Resolution to Authorize the Expansion of the Sustaining Ann Arbor Together Grant Program to Include a New Track Supporting the Building Decarbonization Efforts of Nonprofits and Houses of Worship
Memorandum
The Sustaining Ann Arbor Together (“SA2T”) Grant Program was launched in 2018, upon the recommendation of the Environmental Commission, as a means of promoting and resourcing community-based activities in support of the City's sustainability and climate action goals. Initially launched within Systems Planning, the Program eventually moved to the then-newly-formed Office of Sustainability and Innovations where it has lived ever since.
Through the award of individual grants, the SA2T grant program helps neighborhood groups and community-based organizations develop, resource, and complete small-scale sustainability projects in the City's rights-of-way or on publicly owned property. Each grant awarded is $10,000.00 or less (excluding neighborhood contributions). Since 2019, the total annual grant program funding has been $100,000.00, which comes from the budget of the Office of Sustainability and Innovations.
To date, only the following entities have been eligible to apply for a SA2T grant:
• Neighborhood associations (registered with the City); or
• Nonprofit entities registered with the State of Michigan
In 2023, Ann Arbor City Council formalized the SA2T grant program via the adoption of Resolution 23-302. Since that time, the City has awarded over a dozen grants to eligible applicants.
Given the success of the SA2T grant program, the City is looking at opportunities to grow and evolve the program. Additionally, as the City’s work on decarbonization has grown, so too has interest from organizations looking to join the movement. Over the last two years, a growing number of nonprofits and houses of worship have inquired about ways they can take advantage of the City’s programs, expertise, and initiatives to help lower the carbon and environmental footprint of their operations and, explicitly, of their buildings.
As it currently stands, the only local sustainability program available to nonprofits and houses of worship is the existing SA2T grant. But grant applications are limited to $10,000.00 and the program mostly funds projects in the City’s rights-of-way or on publicly owned property, or projects that are public facing. Funding has not historically been used to fund building decarbonization projects. And, funds have been fully expended each of the last several years, meaning that there are not enough existing resources to expand the current program without growing the resources allocated to the initiative.
Given the success of the A2ZERO Rebate program that focuses almost exclusively on building decarbonization in the residential sector, and the fact that the Office is working to launch a new commercial/business building decarbonization program, there is interest in creating a new track of the existing SA2T program that focuses exclusively on decarbonizing the buildings and operations of nonprofits and houses of worship.
If this expansion is authorized by Council, the Office of Sustainability and Innovations would work to build out this new track, including all application materials and guidelines. These materials will almost certainly be similar to what currently exists in the A2ZERO Home Energy Rebate program but be focused on houses of worship and nonprofits. In addition, if authorized by Council, OSI will work to integrate this expansion into its Fiscal Year 2027 budget so that the SA2T program has a total of up to $300,000.00 available in grants. This funding would be broken down such that:
• $100,000.00 is available through the existing grant program to nonprofits and neighborhood associations working on sustainability projects that benefit the public or are in the public rights of way; and
• $200,000.00 is available for building decarbonization projects at nonprofits and houses of worship
Specific details about these programs will be developed after Council authorization is secured. For now, staff recommend expanding the SA2T grant program to ensure the City’s resources are helping as many stakeholders as possible advance their sustainability and carbon neutrality actions.
Budget/Fiscal Impact: Funding for the proposed expansion of the Sustaining Ann Arbor Together Grant Program would come from funds currently allocated to rebates. More specifically, the Office of Sustainability and Innovations has budgeted $2.35 million for rebates starting in FY27. The Office seeks flexibility in how those rebates are allocated to ensure that the team can nimbly respond to market conditions. However, for FY27, the OSI is proposing a starting allocation of the following:
• $1,000,000.00 for residential rebates
• $500,000.00 for Insulate Ann Arbor rebates
• $500,000.00 for commercial rebates
• $100,000.00 for traditional SA2T grant applicants
• $200,000.00 for the new SA2T track focused on building decarbonization in houses of worship and nonprofits
• $50,000.00 for yard electrification rebates
These funds are already integrated into the FY27 budget for the Office of Sustainability and Innovations.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Director
Reviewed by: Valerie Jackson, Assistant City Attorney
Reviewed by: Kim Hoenerhoff, Financial Analyst
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, In the past, the Ann Arbor Office of Sustainability and Innovations has dedicated a portion of its budget each year to support the Sustaining Ann Arbor Together Grant Program;
Whereas, This funding has supported more than thirty (30) community-focused sustainability improvement projects in the City's rights-of-way or on publicly owned property;
Whereas, In 2023, City Council formalized the creation of the Sustaining Ann Arbor Together Grant Program via Resolution 23-302;
Whereas, Interest continues to grow in this program, including from houses of worship and nonprofit organizations seeking to decarbonize their buildings and operations;
Whereas, The current Sustaining Ann Arbor Together Grant program does not fund building decarbonization projects; and
Whereas, Staff in the Office of Sustainability and Innovations recommend creating a new track within the Sustaining Ann Arbor Together Grant Program that would provide support for building decarbonization efforts in houses of worship and nonprofit organizations;
RESOLVED, That City Council reaffirm its support for the Sustaining Ann Arbor Together Grant Program;
RESOLVED, That City Council authorize the creation of a new track within the Sustaining Ann Arbor Together Grant Program to support building decarbonization efforts in nonprofits and houses of worship; and
RESOLVED, That City Council authorize the Sustainability and Innovations Director, or their designee, under the guidance of the City Administrator, to administer the Sustaining Ann Arbor Together Grant Program.