Council hears proposal to hire vendor to pursue federal IRA rebates for geothermal/solar on city facilities

Mike and other staff briefed the Council on a proposed contract with Afton Energy to pursue federal Inflation Reduction Act rebates for the city's geothermal system at a recently completed building and to assist with future solar work.

Mike said Afton Energy would perform the application work and paperwork in exchange for 15% of whatever rebate the city receives. He described the firm's incentive, noting "if they get a $0, they get $0," and that staff would not pursue the paperwork in‑house because of limited staff capacity and the program’s complexity.

Staff explained the rebate is issued by the federal government and that initial expectations are that the geothermal work may be eligible for up to 30% of eligible costs, with an additional 10% possible if Davis‑Bacon and Buy America provisions are met. Mike said the exact rebate amount would not be known until Afton Energy performs a detailed review about 45 days into the process.

Councilmembers asked whether the city should be planning future solar projects now to be positioned for available rebates; staff said solar is on the radar, that some preliminary analysis exists and that the team will consider solar as part of capital planning for future budgets. Staff said some IRA deadlines previously cited have been extended, reducing immediate time pressure for solar decisions.