190808

The City of Portland ordains: 

Section 1. The Council finds: 

1. The Bureau of Planning and Sustainability (BPS) shapes Portland’s future and advances climate protection for a more prosperous, healthy, equitable, and resilient city now and for future generations.  

2. In November 2018, Portland voters created the Portland Clean Energy Community Benefits Fund (PCEF) program, which invests in community-originated climate action solutions that advance racial and social justice. 

3. The PCEF program is now projected to generate $80 to $90 million annually in new revenue to provide grants to qualified nonprofit organizations for projects that reduce carbon emissions, advance resiliency and promote equity for all Portlanders, with a focus on low-income communities and communities of color.  

4. A nine-member PCEF Committee makes funding recommendations to Council and measures and evaluates the effectiveness of the PCEF program.  

5. Over several days in June 2021, over 100 Oregonians lost their lives to extreme temperatures associated with climate change, with over 60 lives lost in Multnomah County. This heat wave was one of the deadliest documented natural disasters in Multnomah County’s history. 

6. On October 6, 2021, in implementation of its efforts to ameliorate the impact of future extreme heat events by funding energy efficiency programs, PCEF staff presented a portable heat pump/cooling purchase and distribution program to the PCEF Committee. The PCEF Committee approved the concept and directed PCEF staff to develop two Request for Proposals (RFPs), focused on two distinct roles needed to implement a Heat Response Program: 

7. A single Equipment Purchasing Partner (EPP) to coordinate the centralized purchase of 15,000 portable heat pump/cooling units, coordinate equipment delivery to contracted community distribution partners, and provide logistics and technical assistance. 

8. A number of nonprofit Community Distribution Partners (CDP) to distribute and install portable heat pump/cooling equipment, provide information about how to use the devices, and potentially install basic weatherization kits. 

9. On October 13, 2021, PCEF staff released a RFP for the EPP role. On October 19, 2021, PCEF staff released a RFP for the CDP role. 

10. On January 5, 2022, City Council passed Ordinance No. 190670, authorizing the Director of the Bureau of Planning and Sustainability to execute the Portland Clean Energy Community Benefits Fund Heat Response, EPP Grant with Earth Advantage Inc., for a total allocation not to exceed $10,020,289.  

11. Ordinance No. 190670 also noted that PCEF staff planned to return to Council in the following months with funding recommendations for the CDP role, and that PCEF staff were reviewing grant eligibility criteria and the review process to ensure best practices are in place to minimize risk in the PCEF program. 

12. On February 11, 2022, PCEF executed Grant Agreement No. 32002637 with Earth Advantage for their services in providing the EPP role.  

13. PCEF staff received 11 applications for the CDP role. Following application intake, PCEF staff conducted eligibility screening, asked applicants additional clarifying details regarding costs and implementation, and applied the additional grant review process steps that had been previously approved by the PCEF Committee.  

14. The CDP application process categorized applicants into two types based on services provided: housing providers, and non-housing community-based organizations. PCEF staff reviewed the cost information provided by CDP applicants and defined a fixed cost structure for the compensation of CDP services related to the delivery and installation of heat pump/ cooling units. This cost structure was communicated to CDP applicants and applicants were given the opportunity to decline participation.    

15. A three-person review panel evaluated the eligible, participating CDP applicants based on the scoring criteria that were provided in the CDP RFP. Seven CDPs were recommended to serve in the initial cohort of CDPs in the Heat Response Program. Staff noted that the total number of units anticipated for distribution by this initial cohort was approximately 7,000 units less than the 15,000 total units planned for the 5-year program delivery and developed a prioritization approach to bring on additional CDPs in the future. This approach will seek additional CDP capacity from non-profit affordable housing providers, nonprofit community-based organizations, community health organizations, and then for-profit direct installation providers, in that order. 

16. On April 7, 2022, the PCEF Committee approved an allocation of $6,325,000 to the Heat Response Program for the installation services of the CDPs, additional services, and a contingency set-aside. 

17. Pending Council approval of the amendment, PCEF staff will work with Earth Advantage to amend Grant Agreement No. 32002637 to include the subcontracted services and allocation of funds for the CDPs. Earth Advantage will develop contracts with the initial cohort of selected CDPs, and they will begin onboarding, trainings, and subsequent installations of portable heat pump cooling units into people’s homes.   

18. Funding for the Heat Response Program is allocated under the energy efficiency program priority under PCC 7.07.060(1) because the Heat Response Program is focused on distributing efficient heat and cooling equipment.  

NOW, THEREFORE, the Council directs: 

1. The BPS Director is authorized to amend the Portland Clean Energy Community Benefits Fund Heat Response, Equipment Purchasing Partner grant to Earth Advantage Inc., in a form approved by the City Attorney, with an increase in the amount of $6,325,000 for the subcontracted services of the Community Distribution Partners, with an allocation as described on page 5 of Exhibit A.   
    
2. Amendments to the grant agreement – including scope of work, budget and grant amount – may be executed by the BPS Director, provided those amendments do not increase the fiscal risk to the City or increase funding as authorized above.