HomeMy WebLinkAboutAgenda 04-07-2026; 8-n - Authorization of Funding for Four (4) Priority County Solar Projects to Secure Federal Direct Pay Incentives and Approval of Budget Amendment #8-B 1
ORD-2026-009
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 7, 2026
Action Agenda
Item No. 8-n
SUBJECT: Authorization of Funding for Four (4) Priority County Solar Projects to Secure
Federal Direct Pay Incentives and Approval of Budget Amendment #8-B
DEPARTMENT: County Manager's Office
Asset Management Services
ATTACHMENT(S): INFORMATION CONTACT:
Year-To-Date Budget Summary Amy Eckberg, Sustainability Programs
Manager, 919-245-2626
Alan Dorman, AMS Director, 919-245-2627
Kirk Vaughn, Budget Director, 919-245-
2153
PURPOSE: To:
1) Approve full funding for four (4) priority solar installation projects which will take
advantage of Direct Pay solar incentives under the Inflation Reduction Act;
2) Authorize the County Manager to execute an agreement with the responsive/
responsible bidder following the bid process, subject to final review by the County
Attorney, and to approve any subsequent amendments for contingent or unforeseen
needs within the approved budget on behalf of the Board.; and
3) Approve Budget Amendment #8-B.
BACKGROUND: Orange County's Climate Action Plan (CAP) establishes targets of reducing
greenhouse gas (GHG) emissions 50 percent by 2030 and achieving carbon neutrality by
2050. In addition, the Board of Commissioners adopted a 2017 resolution committing the
County to transition to 100 percent renewable energy by 2050.
To support these goals, CAP Action: Built Environment and Energy (BE) 2.1 calls for
expanding on-site renewable energy generation at County facilities. Solar installations are
one of the most effective strategies to reduce emissions and stabilize long-term energy
costs.
Based on the recently completed consultant-led solar feasibility study, staff have prioritized
the following facilities for immediate solar installation, based on roof readiness, electrical
infrastructure, and financial feasibility. The four (4) facilities identified for immediate solar
installation are:
• Solid Waste Administration Building - $140,333
• Whitted Building - $323,976
• Sportsplex Fieldhouse - $640,789
• Emergency Services Center - $239,923
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These projects will take advantage of the last year of the federal Inflation Reduction Act
Direct Pay provisions which allows local governments to receive a reimbursement of 30%
for solar energy projects, significantly improving the financial viability of the above solar
installations. However, in order to provide the County with a four-year installation window,
5% of the construction costs must be paid by July 3, 2026. If the County does not meet this
deadline, the County will only have an 18-month window in which to install and make solar
projects fully operational by December 31 , 2027 in order to be eligible for the direct pay
incentive.
FINANCIAL IMPACT: Budget Amendment #8-B recognizes Alternative Financing for the
Solar projects. Each project will be eligible for 30% Direct Pay Solar Incentives.
Budget Amendment #8-B increases authorization in the County Capital Fund by $563,899,
the Solid Waste Replacement and Renewal Fund by $140,333 and the Sportsplex Fund by
$640,789, and amends and creates the following project ordinances:
Solar Photovoltaic Systems ($563,899) - Project# 10090
Revenues for this project:
Current FY 2025-26 FY 2025-26
FY 2025-26 Amendment Revised
Alternative Financing $779,559 $394,729 $1,174,288
Grants $196,051 $0 $196,051
Contribution from Hillsborough j $24,750 j $0 j $24,750
Incentives $0 $169,170 $169,170
Total Project Funding $1,000,360 $563,899 $1,564,259
Appropriated for this project:
Current FY 2025-26 FY 2025-26
FY 2025-26 Amendment Revised
Project Expenditures $1,000,360 $563,899 $1,564,259
Total Costs $1,000,360 $563,899 $1,564,259
Solid Waste - Solar Photovoltaic Systems ($140,333) - Project#35006
Revenues for this project:
Current FY 2025-26 FY 2025-26
FY 2025-26 Amendment Revised
Alternative Financing $0 $98,233 $98,233
Incentives $0 $42,100 $42,100
Total Project Funding $0 $140,333 $140,333
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Appropriated for this project:
Current FY 2025-26 FY 2025-26
FY 2025-26 Amendment Revised
Project Expenditures $0 $140,333 $140,333
Total Costs $0 $140,333 $140,333
Sportsplex- Solar Photovoltaic Systems ($640,789) - Project#36008
Revenues for this project:
Current FY 2025-26 FY 2025-26
FY 2025-26 Amendment Revised
Alternative Financing $0 $448,552 $448,552
Incentives $0 $192,237 $192,237
Total Project Funding $0 $640,789 $640,789
Appropriated for this project:
Current FY 2025-26 FY 2025-26
FY 2025-26 Amendment Revised
Project Expenditures $0 $640,789 $640,789
Total Costs $0 $640,789 $640,789
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• GOAL 1: ENVIRONMENTAL PROTECTION AND CLIMATE ACTION
OBJECTIVE 1. Identify the priorities and resources necessary to implement the
Climate Action Plan.
RECOMMENDATION(S): The Manager recommends that the Board:
1) Approve full funding for four (4) priority solar installation projects in order to maintain
Orange County's eligibility for Direct Pay solar incentives under the Inflation Reduction
Act;
2) Authorize the County Manager to execute an agreement with the responsive/
responsible bidder following the bid process, subject to final review by the County
Attorney, and to approve any subsequent amendments for contingent or unforeseen
needs within the approved budget on behalf of the Board; and
3) Approve Budget Amendment #8-B.
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Year-To-Date Budget Summary
Fiscal Year 2025-26
Solid Waste Sportsplex
Fund Budget Summary County Renewal and Renewal and
Capital Replacement Replacement
Fund Fund
Original Budget Revenue $36,635,068 $2,269,482 $400,000
Interfund Transfer Revenue $1,400,000 $1,953,786 $936,338
Fund Balance Appropiation $0 $0 $0
Total Original Budget $38,035,068 1 $4,223,268 $1,336,338
Additional Revenue Received Through
Budget Amendment#8-B (April 7th)
Grant Funds $1,396,538 $42,100 $192,237
Non Grant Funds $2,170,657 $98,233 $448,552
Additional Interfund Transfer Revenue $290,954 $229,000
Additional Fund Balance Appropriation
Total Amended Budget $41,893,217 $4,592,601 $1,977,127
Dollar Change in 2025-26 Approved Budget $3,858,149 $369,333 $640,789
Change in 2025-26 Approved Budget 10.14% 8.7S%j 47.95%