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A Study Session to Review Proposed Energy Grant Guidelines for 2026 and Other Energy Efficiency Related Programming.
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Introduction
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Village Staff have created new grant guidelines for the 2026 Energy Grants based on feedback from the community and Sustainability Credits based on input from the Village Board and Oak Park Climate Action Network (OPCAN).
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Recommended Action
Staff is seeking the Village Board’s feedback on the changes to the Energy Grants program and creation of the Sustainability Credits prior to bringing forward the final guidelines for approval.
Prior Board Action
The Board has taken the following prior action(s):
• The Village Board approved $750,000 in the 2026 Fiscal Year Budget for the Energy Grants.
• The Village Board approved the 2025 Energy Grant Guidelines at the January 14, 2025 Board Meeting.
Background
The Climate Ready Oak Park Plan commits the Village to reducing Greenhouse Gas emissions by 60% by 2030. Residential properties represent 38.8% of total community-wide emissions in 2022. The Village’s Climate Ready Energy Grants have been providing residents with monetary assistance to make energy efficiency upgrades.
This resolution aligns with CROP actions EN03 and BD03.
In FY2025, the Sustainability budget included $750,000 allocated towards the Climate Ready Energy Grants. Grant awards fell into three tiers based on income.
• Households at 80% or below AMI were eligible for up to $10,000.
• Households between 80% and 120% AMI were eligible for up to $5,000, matching.
• Households above 120% AMI were eligible for up to $1,000, matching.
As of November 2025, 53 applications were submitted, including 21 for Tier 1, 7 in Tier 2, and 19 in Tier 3. These applications represent less than the $750,000 allocated for the program in 2025. Hearing feedback from applicants and potential applicants and seeking input from the OPCAN Climate Coaches, staff determined that there are changes that could be made to make the grants more attractive to potential applicants.
For 2026 Staff recommend the following changes for the Energy Grant program:
• Increase the amount of the grant to $20,000 for households below 80% AMI.
• For households between 80% and 120% AMI, eliminate the matching requirement.
• Eliminate the $1,000 grants.
• Create a $10,000 5 year no interest Energy Loan open to all income levels.
• Create a 5-year no-interest Energy Loan for multifamily properties.
• Create a rebate program to support electric appliances.
Timing Considerations
Funds are allocated for FY2026. Approving grant guidelines in early 2026 will allow more time to advertise and award grants and loans.
Budget Impact
The loans will utilize the funding allocated for the Climate Ready Grant program. Funds are allocated in GL#2310.41020.101.570668.0000.
Operating Impact
Grants and Loans will be operated through Neighborhood Services. Sustainability Credits will be administered through Development Services. These are daily operating functions of the departments and will not require the addition of staff. Setting up the new loans, new credits, and adjusting the grant guidelines will require staff time for administration. This will account for approximately 40 hours from Neighborhood Services and 20 hours from Development Services.
DEI Impact
The Energy Grant guidelines are written to provide a higher benefit to the most vulnerable, defined for the purposes of this program as household below 80% AMI.
Community Input
The recommended guidelines were created with input received from community members through various channels. Staff received input from applicants and potential applicants on the ways the application process could be improved. Staff spoke with potential applicants at community events and listened to the needs and concerns. Staff worked closely with the Oak Park Climate Action Network and the input received from the Climate Coaches. The Environment and Energy Commission reviewed the proposed grant guidelines, loan guidelines, and sustainability credit guidelines at their December 2025 and January 2026 meetings.
Staff Recommendation
Staff recommend the Village Board recommends adopting the proposed guidelines.
Advantages:
• This action increases the accessibility of the Energy Grant programs.
• This action increases the potential investment per property.
• This action provides significant resources to vulnerable households.
• This action creates a sustainable revolving fund for future grants and loans.
Disadvantages:
• Larger amounts decrease the potential number of recipients.
• Changing guidelines requires staff time to adjust internal processes.
Alternatives
Alternative 1:
The Village Board can recommend no changes to the current grant program.
Advantages:
• Grants will continue to be offered at the existing levels.
• This action reduces the administrative burden of creating new programs
Disadvantages:
• The 2026 grants will not address barriers identified in 2025.
Alternative 2:
The Village Board may recommend alternative changes to the current grant program and proposed loan and credit programs.
Advantages:
• Alternative guidelines may address feedback given to the Trustees but not Staff.
Disadvantages:
• There are no disadvantages to this action.
Anticipated Future Actions
Staff anticipate bringing the Grant Guidelines, Loan Guidelines, and Sustainability Credit Guidelines for Board approval at the February 10 meeting.
Prepared By: Lindsey Roland Nieratka, Chief Sustainability Officer
Reviewed By: Jack Malec, Assistant to the Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Presentation 2026 Energy Grant Study Session