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A Resolution Approving and Adopting the Village of Oak Park Climate Ready Sustainability Credit Program Guidelines
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Introduction
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This is a Resolution which will adopt the program guidelines for the Village of Oak Park Climate Ready Sustainability Credit.
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Recommended Action
Adopt the resolution.
Prior Board Action
The Board has taken the following prior action(s):
• On January 27, 2026 the Village Board received a presentation on the Sustainability Credit and Energy Fee program and provided input to Village Staff.
Background
The Climate Ready Oak Park (CROP) plan commits the Village to ambitious greenhouse gas emission targets, including a 60% reduction in emissions by 2030 and reaching net zero by 2050. Over seventy percent (71.1%) of the Village’s greenhouse gas emissions are a result of energy use in buildings. To address these emissions, the CROP plan includes many actions related to energy use in buildings and housing. Although not specifically called for in CROP, providing financial incentives for building owners to choose more sustainable options is a strategy that Staff, the Board, and the Community have identified as valuable.
To best set and track progress towards targets for efficiency and decarbonization in buildings, knowing how many buildings are conducting energy efficiency retrofits and choosing more efficient technologies is valuable. Under the current permitting system, these specific projects are difficult to track. One method staff identified to track projects of specific interest is the creation of credits for those projects.
To access the relevant Sustainability Credit, the Homeowner or Contractor (Applicant) would select the credit while applying for the required permits. Once selected, the credit would be applied to the overall permit costs. Credit amounts for most permit types are $150. This covers most of the cost of permits which vary from $150 to $175. Hybrid heat pump systems will be eligible for a credit of $75. For projects requiring a single permit, the application of the credit will result in a final permit cost of $0 or nearly zero. This method serves the same purpose as a fee waiver, while streamlining the process for both the Applicant and Village Staff. Credits will be applied immediately, requiring no additional applications or reimbursement process. The credit categories make it possible to track improvements of interest in the Village’s permitting system.
Applying credits to specific improvements will reduce revenue from permits. Permit revenue is used to cover the costs of administration of permits. To make up for this deficit, the lost revenue from Sustainability Credits will be transferred to Development Services from the Sustainability Fund. The Village Board allocated $100,000 for this purpose in the 2026 budget.
Village Staff will track the results of the Sustainability Credits and report back to the Village Board on the outcomes.
Timing Considerations
Approving the guidelines now will allow staff to set up and begin administering the program.
Budget Impact
Providing the Sustainability Credits will reduce revenue from permits. The Office of Sustainability and Resilience will cover this lost revenue in 2026 through the Sustainability Fund. For Fiscal Year 2026, there are $100,000 allocated in GL# 2310.41020.101.570852.0000.
Village Staff will report on the 2026 results and recommend an appropriate budget allocation for future program years.
Operating Impact
The Office of Sustainability and Resilience and the Development Services Department have spent an estimated combined 10 hours developing the Credit program. An additional 5-10 hours will be needed by the Development Services Department to set up the Credits in the permitting system.
The Credits will be administered through the Development Services Department and will be a part of the Department’s core service delivery.
DEI Impact
There is no DEI impact associated with this item.
Community Input
Village Staff sought input from the Oak Park Climate Action Network and the Environment and Energy Commission in developing the Sustainability Credit guidelines.
Staff Recommendation
Adopt the Resolution.
Advantages:
• The Sustainability Credits will provide an incentive for energy efficiency retrofits.
• The Sustainability Credits will provide a method of tracking energy efficiency retrofits.
Disadvantages:
• The Sustainability Credits will reduce revenue related to building permit fees and require expenditures from the Sustainability Fund.
Alternatives
Alternative 1:
The Board can elect not to adopt the resolution.
Advantages:
• No further staff resources will be expended on this item.
• Revenue related to building permits will not change.
Disadvantages:
• There will be no added incentive for energy efficiency retrofits.
• Staff will not be able to easily track energy efficiency improvements.
Anticipated Future Actions
Village Staff will report on the results of the Sustainability Credit program at a future date.
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. Resolution - Sustainability Credits
2. Sustainability Credits Guidelines