COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: April 7, 2026
SUBJECT: Adoption of a Resolution Approving Entering into the California Home Energy Renovation Opportunity (HERO) Program and Approve Amendment to Joint Powers Agreement
Description:
The City Council will consider adopting a resolution authorizing the City to enter the Home Energy Renovation Opportunity (HERO) Program, administered by the Western Riverside Council of Governments (WRCOG).
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Adopt a Resolution consenting to the inclusion of properties within the City’s jurisdiction in the California H ERO Program to finance distributed generation renewable energy sources, energy and water efficiency improvements and electric vehicle charging infrastructure and approving the amendment to a certain Joint Powers Agreement between City of Santa Maria and Western River side Council of Governments related thereto;
2. Authorize the membership of the City of Santa Maria in the WRCOG; authorizing WRCOG to accept applications from property owners, conduct contractual assessment proceedings and levy contractual assessments within the territory of the City; and
3. Authorize the City Manager , or designee, to execute all related documents; and authorize related actions.
BACKGROUND:
Under the leadership of the City Council, the City of Santa Maria has identified economic development as a key priority to create jobs and enhance economic stability for the community. Yet current market conditions, including the effects of inflation as well as high interest rates for construction loans, can present challenges in financing new development.
In an effort to provide new tools to foster economic development within the City, the Santa Maria City Council adopted the Bond Opportunities for Land Development (BOLD) 2 Program through the California Municipal Finance Authority (CMFA) and the Statewide Community Infrastructure Program (SCIP) through the California Statewide Communities Development Authority (CSCDA) on September 16, 2025. These programs provide low - interest bond funds for capital infrastructure to support new projects. Additionally, the City Council adopted the CSCDA’s Open Property Assessed Clean Energy (PACE) Program on November 18, 2025, to provide a new funding mechanism for commercial and residential property owners to finance energy efficiency, renewable energy, water conservation, and seismic improvements.
The proposed HERO Program would join the Open PACE Program as another option for financing energy efficiency and related improvements. The key difference between these offerings is that the HERO Program has no minimum amount for project financing. HERO would thus allow smaller projects to access similar funding opportunities to large -scale projects, thus facilitating development.
Administered entirely by the WRCOG, the proposed program requires no City expenditures or staff time.
DISCUSSION:
The HERO Program was launched by WRCOG in December 2011 as a Property Assessed Clean Energy (PACE) initiative. It allows residential and commercial property owners to finance the installation of eligible energy efficiency, renewable generation, and water conservation improvements, with repayment as an item on the property owner's property tax bill.
Eligible improvements include energy -efficient HVAC systems, cool roof systems, windows and doors, solar thermal water heating, insulation, weatherization, indoor lighting, and water efficiency measures. All financed products must meet Energy Star, California Title 24, or WaterSense requirements.
While the program was initially available in the WRCOG subregion, it expanded in 2013 to availability throughout California. Recently, WRCOG approached staff to request the City of Santa Maria’s support for the program, as the organization is working with a local business who wishes to utilize HERO.
All responsibility for program administration, inc luding the conduct of assessment proceedings; levy of assessments; any required remedial action in the case of delinquencies in assessment payments; and the issuance, sale or administration of bonds issued in connection with the program rests with the WRCO G. No staff time is required from the City, and costs are fully funded by the property owner.
The program is entirely optional for developers and owners of both commercial and residential property. The program provides a new financing tool that developers, business owners, and homeowners alike can utilize to achieve their renewable energy goals.
3 Alternative(s)
The City Council may decide not to authorize HERO, which would prevent local commercial and residential property owners from using this tool to aid in financing new projects and upgrades to existing commercial facilities and homes.
Fiscal Considerations
None. All costs and expenses related to the program and its administration are borne by the WRCOG and property owner.
Impact on the Community
The adoption of the HERO Program will provide a new financing tool for developers and homeowners alike at no cost to the City.
ATTACHMENT(S)
A. Resolution – HERO Program and Exhibit “A” - Amendment to Joint Powers Agreement