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Home My WebLink AboutORD-2026-009-Authorization of Funding for Four (4) Priority County Solar 1 ORD-2026-009 1 L-t � 1 �� ; $ � n 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 2050s 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 No $ 323 , 976 • Sportsplex Fieldhouse - $ 640 , 789 Emergency Services Center on $ 239 , 923 2 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 $24 , 750 $0 $24 , 750 Incentives $0 $ 169 , 170 $ 16% 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 , 5641259 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 3 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 $6403789 Appropriated for this project : Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Project Expenditures $0 $6403789 $640 , 789 Total Costs $0 $ 640 ,789 $640 , 789 ALIGNMENT WITH STRATEGIC PLAN : This item supports : • GOALIE, 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 - 13 . 4 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 138 , 035, 068 14 , 223 , 268 11 , 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 $45592 , 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% 8275 % 47 . 95 % i E I i €i I 1 I 4 4 k 1 i I