Explanation
BACKGROUND: The Department of Finance and Management requests establishing a Special Revenue Fund entitled “Sustainable Columbus Fund”, which is authorized to accept funds from AEP Energy, Inc. in connection with the Community Choice Aggregation program known as Clean Energy Columbus enacted by the City of Columbus.
The Clean Energy Columbus program allows the City of Columbus to pool together the retail electrical loads of their residents and small businesses to contract for energy on their behalf. This process, known as Governmental Aggregation or sometimes Community Choice Aggregation, provides an opportunity for residential and small business consumers to participate collectively in the potential benefits of electricity deregulation, which include, but are not limited to, competitive electricity rates, increased consumer choice, an increased demand for renewable energy to help grow the industry, and a 100% renewable energy supply - which means a healthier and more equitable living environment for Columbus residents.
To achieve these benefits, Ordinance 1642-2020 authorized the City of Columbus to perform all necessary actions to effect a Governmental Electricity Aggregation program for the City with opt-out provisions pursuant to Section 4928.20 of the Ohio Revised Code. The City added this program to the ballot on November 3, 2020 and it was approved by the majority of the electors, as required by law.
Pursuant to the authority granted by Ordinance 1642-2020, the City entered into a Governmental Aggregation Master Retail Electric Supply Agreement with AEP Energy, Inc. This Master Supply Agreement provides for the supply of electricity for City of Columbus program participants, both residential and commercial. In addition, this agreement includes in its overall generation supply rate a Community Grant fund rate for all retail electric supply that is consumed and paid for by customers participating in the Community Choice Aggregation program. These funds will be paid to the City on a monthly basis by AEP Energy, Inc.
Proceeds from these receipts shall be used to provide a range of energy management and alternative energy initiatives to benefit the greater Columbus community. Some of these initiatives may include but are not limited to the following: community education and outreach, grants, infrastructure investment, energy efficiency projects, training, workforce development, administrative costs incurred by the City, and other activities related to clean energy, energy efficiency, and sustainability initiatives.
FISCAL IMPACT: Community Grant proceeds will be deposited into this Special Revenue Fund to be used for clean energy, energy efficiency, and climate-action sustainability initiatives.
Title
To authorize the City Auditor to create a Special Revenue Fund titled Sustainable Columbus Fund for the purpose of depositing proceeds received from AEP Energy, Inc. in connection with the Community Choice Aggregation program; such funds shall be used for the purpose of promoting energy management and alternative energy initiatives; to appropriate an amount up to, but not to exceed, the cash in the fund not encumbered for any other purpose; and to authorize the expenditure of said funds received for such purposes.
Body
WHEREAS, the Department of Finance and Management seeks to establish a Special Revenue Fund titled “Sustainable Columbus Fund” which is authorized to accept funds from AEP Energy, Inc. in connection with the Community Choice Aggregation program known as Clean Energy Columbus; and
WHEREAS, the purpose of this Special Revenue Fund is to provide support to a range of clean energy, energy efficiency, and sustainability initiatives to benefit the greater Columbus community. Some of these initiatives may include but are not limited to the following: community education and outreach, grants, infrastructure investment, energy efficiency projects, training, workforce development, administrative costs incurred by the City, and other activities related to clean energy, energy efficiency, and sustainability initiatives; and
WHEREAS, these activities will benefit the community by providing resources to enhance knowledge of and access to alternative forms of energy, providing community grants to provide economic assistance for alternative energy adoption, investments in local energy infrastructure, and other programs related to alternative energy and green initiative designed to reduce the community’s carbon emissions; and
WHEREAS, all City procurement procedures will be followed for purchases related to this special purpose fund; and
WHEREAS, it has become necessary in the usual daily operation of the Finance and Management Department to authorize the establishment of a Sustainable Columbus Special Revenue Fund for the purpose of supporting energy management and alternative energy initiatives in the greater Columbus community, thereby preserving the public health, peace, property, safety, and welfare; NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1. That a Special Revenue Fund titled “Sustainable Columbus Fund” shall be established, Fund XXXX, for the receipt of proceeds from AEP Energy, Inc. in connection with the Community Choice Aggregation program known as Clean Energy Columbus .
SECTION 2. That this Special Revenue Fund be authorized to accept funds from AEP Energy, Inc. and other public and private sources and that such funds shall be used for the purpose of supporting energy management and alternative energy initiatives in the greater Columbus community.
SECTION 3. Any such future deposits as the City may receive are hereby deemed to be appropriated and the City Auditor is hereby authorized to pay such amounts thereof, in accordance with payments made according to the agreements in place for the Sustainable Columbus Fund.
SECTION 4. That the Director of Finance and Management is hereby authorized to expend funds for activities such as community education and outreach, grants, infrastructure investment, energy efficiency projects, training, workforce development, administrative costs incurred by the City, and other activities related to clean energy, energy efficiency, and sustainability initiatives.
SECTION 5. That all purchases related to this Special Revenue Fund will be made in accordance with all City procurement procedures.
SECTION 6. That the monies in the Special Revenue Fund created in Section 1 of this ordinance shall be deemed appropriated in an amount up to, but not to exceed, the cash in the fund not encumbered for any other purpose, and that no money shall be paid there from except by voucher approved by the City Auditor.
SECTION 7. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.