The Ames City Council authorized staff to submit an application to the U.S. Department of Agriculture for the Rural Energy Savings Program and to establish a city energy‑upgrade program if the award is offered. Staff said the program — if funded — would provide up to $15 million at 0% interest from USDA and operate as a revolving fund to finance home energy upgrades, with customer repayment added as a fixed charge on the utility bill and terms capped by useful life (maximum 15 years).

Nut graf: Council approved staff’s request to apply for the USDA loan; staff will accept the funds only if the city receives a conditional commitment and then returns to council for final approval of program terms and a program operator.

Don (electric utility staff) and Nolan (sustainability coordinator) described three participation tracks: an expedited HVAC replacement track for urgent heat‑pump/HVAC needs, a solar/pv track, and a comprehensive retrofit track that begins with an energy audit and then finances efficiency measures (insulation, air sealing, efficient HVAC, water heaters). Staff said their application — due the next day — would propose program operations with a third‑party program operator, a program fee of below 1% (to cover operations), and minimal credit barriers because qualification would require being in good standing on the utility account rather than a full credit underwriting.

Staff said the loan would be secured using electric utility fund collateral and repayment streams; they noted that nonpayment could be enforced under typical utility collection rules. Councilors asked about consumer disclosure and title searches: staff said a notice would be recorded so the obligation runs with the meter/property and that closing‑stage searches should show the obligation, and they acknowledged prior local experience where property buyers raised concern about recorded utility obligations.

Council voted to authorize submission of the USDA application and establishment of the program; the roll call showed one dissenting vote (Council member Barton voted nay). Staff will return with the USDA conditional commitment before accepting funds, and then issue an RFP for a program operator, finalize contractor quality assurance terms and insurance requirements, and set an implementation timetable.

Ending: If the federal award is received and council later accepts it, Ames hopes to use the zero‑interest capital to accelerate weatherization, heat‑pump adoption and small‑scale solar for eligible customers while recycling repayments back into future projects.