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Calistoga approves PG&E zero-interest loan to fund EcoGreen energy upgrades at city buildings
Summary
Council voted unanimously to authorize a 0% interest loan from PG&E to pay EcoGreen Solutions for energy-efficiency retrofits at multiple city facilities, with projected energy savings exceeding project costs and no upfront expense to the city.
Calistoga — The Calistoga City Council on Feb. 25 unanimously approved a resolution allowing the city manager to execute an agreement with EcoGreen Solutions LLC, financed by a 0% interest loan from Pacific Gas & Electric, to install energy-efficient equipment at city-owned facilities.
Public works director Derek Rayner told the council the upgrades require no upfront municipal spending because PG&E will pay EcoGreen and the loan will be repaid from the utility savings the measures are expected to generate. "We take a loan from PG and E, and PG and E pays the vendor, Eco Green, to come in and upgrade the equipment," Rayner said.
The decision came after a public hearing. Rayner said PG&E performed an audit of city buildings in April 2024 and identified retrofit measures with payback periods ranging roughly from five to eight and a half years. Under a government-code exception cited by staff (Government Code section 4217), the council may approve a sole-source agreement when projected energy savings exceed project costs; staff said the estimated annual energy savings of about $18,000 exceeds the loan repayment during the loan term.
Councilmember Eisenberg asked whether there were downsides; Rayner and EcoGreen representatives said the vendor maintains equipment during the loan period and the city will realize net savings once the loan is repaid. No member of the public spoke against the project.
The council adopted the resolution by roll call (Eisenberg: Aye; Cooper: Aye; Giff: Aye; Vice Mayor Lopez Ortega: Aye; Mayor Williams: Aye).
Why it matters: The measure is designed to lower operating costs for city facilities and to reduce greenhouse-gas emissions without drawing on the city’s capital funds.
What’s next: The city manager is authorized to execute the agreements with PG&E and EcoGreen; EcoGreen staff present at the meeting said they would answer technical questions during implementation.
