Albany Council approves $125,000 appropriation to keep gas-line decommissioning pilot moving while DOE grant issues are resolved

The Albany City Council on March 3 unanimously approved an appropriation of $125,000 from the Climate Action Adaptation Reserve to sustain the city's gas-line decommissioning pilot project while the city waits to access federal grant funds.

City staff told the council earlier in the meeting that the Department of Energy (DOE) had indicated the city's grant account was no longer paused but the city could not yet log into the DOE's ASAP payment system to withdraw funds.

——— "We did finally receive a reply from the staff at the Department of Energy who are working with us on the grant. Good news. They've told us that we should now be able to get into the ASAP system," said Michelle Plouse, Community Development Analyst. "We have not been able to get into ASAP yet today. We haven't been able to withdraw any funds as of yet, just so we're all clear."

Plouse said city staff had received mixed reports from other grantees: some jurisdictions had regained limited access to the ASAP system and withdrawn funds, while others still could not. She said the city had paid two invoices to the outreach consultants so far using existing community development funds and estimated those invoices totaled between $5,000 and $6,000.

The staff recommendation to appropriate $125,000 reflected two planned consultant contracts: a $100,000 contract for outreach consultants already under way and a second $100,000 contract intended for building electrification assessments later in the project. Plouse described the $125,000 as a cushion to allow the project to proceed on schedule if DOE reimbursements were delayed.

Public comment from Lucinda Young of the Albany Climate Action Coalition urged caution on a full appropriation but said she did not want the project to stall. "If the council does not allocate funds tonight, does this mean that work is going to stop?" she asked. Plouse and council members explained that work could continue short-term but that larger consultant contracts could be at risk if grant disbursements were delayed.

Council members debated alternatives including appropriating a smaller interim amount, setting phased check-ins tied to project milestones, or allocating the full requested amount but requiring staff to return with a status report. Several council members noted the project's potential to position Albany for larger state and utility funding and to support city staff who have been leading the work.

The final motion (resolution 2025-07) included an additional instruction requiring staff to report back after Phase 1 of outreach and provide a status update to council in September. The motion was moved and seconded and carried on a unanimous roll call vote.

Action and next steps: staff will continue attempting to access DOE's ASAP system, proceed with contracted outreach activities, and return to council after Phase 1 with data on community interest and project progress. If DOE reimbursements arrive, the city will use grant funds to reimburse the reserve appropriation as allowed by fund accounting.

Votes at a glance: Resolution 2025-07 (appropriation from Climate Action Adaptation Reserve) — approved 5-0.