PILLAR: Livable
AGENDA DATE: August 25, 2026
COUNCIL DISTRICT(S): 1, 2, 3, 4, 7, 14
DEPARTMENT: Department of Facilities and Real Estate Management
PRIORITY: Government Efficiency
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SUBJECT
Title
Authorize (1) an addendum to the agreement with Oncor Electric Delivery Company LLC, as a condition of continued participation in Oncor's Energy Rebate Programs to allow the City of Dallas to participate in the 2026 Oncor Commercial Standard Offer and Commercial Solar Programs, which provide cash incentives for the implementation of energy-efficiency and solar energy improvements at City facilities; (2) the receipt and deposit of funds, upon receipt of a notice of award from Oncor Electric Delivery Company LLC, in an estimated amount of $260,000.00 in the Capital Construction Fund; and (3) an increase in appropriations in an amount of $260,000.00 in incentive funds in the Capital Construction Fund - Estimated Revenue: Capital Construction Fund $260,000.00
*In alignment with Capital Improvement Program.
Body
BACKGROUND
Oncor Electric Delivery Company LLC (Oncor) offers incentive programs for energy efficiency retrofit projects at commercial customer facilities located within its service territory. Eligible participants include commercial businesses, governmental entities, educational institutions, nonprofit organizations, and places of worship. To qualify for incentives, a customer must receive electric service from Oncor and contribute to the Energy Efficiency Cost Recovery Fund.
City of Dallas facilities are located within Oncor's service territory and contribute to the Energy Efficiency Cost Recovery Fund. As a result, eligible energy efficiency improvements implemented at City facilities may qualify for incentives through the Oncor Commercial Standard Offer Program and Commercial Solar Program. In 2021, the City of Dallas executed a master agreement with Oncor to participate in its energy efficiency incentive programs. This agreement will enable the city to continue participating in the 2026 program cycle and receive available incentives for qualifying projects.
Currently Oncor offers two energy efficiency rebate programs:
1) Commercial Standard Offer Program: This program provides rebates for qualifying energy-efficiency projects, including, but not limited to, high-efficiency equipment improvements, lighting and lighting control upgrades, heating, air condition, ventilation, and cooling (HVAC) system replacements, and Energy Star-related roof replacement projects.
2) Commercial Solar Program: This program offers rebates for installing solar photovoltaic systems.
As a condition of participation in Oncor's Energy Rebate Programs, eligible customers are required to execute a program addendum when program requirements are updated.
Every year the Facility Maintenance Department performs capital improvement projects in City owned facilities that may qualify for rebates under the Oncor Energy Efficiency Rebate Program. Based on planned energy efficiency capital improvement projects for FY2026 & 27, the City may be eligible for the following rebates:
1) Commercial Standard Offer Program: $ 100,000.00
2) Commercial Solar Program: $160,000.00
These rebates are not guaranteed, as Oncor maintains a limited annual budget for these programs and awards rebates to customers on a first-come, first-served basis.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 27, 2020, the City Council authorized the adoption of a Comprehensive Environmental & Climate Action Plan to reduce City of Dallas greenhouse gas emissions by 43% below 2015 levels by 2030 and 100% by 2050 to achieve carbon neutrality by Resolution No. 20-0827.
On June 23, 2021, the City Council authorized an agreement with Oncor Delivery Electric Company LLC for City of Dallas to participate in the Oncor Commercial Standard Offer Program by Resolution No. 21-1085.
On April 13, 2022, the City Council authorized an agreement with Oncor Delivery Electric Company LLC for City of Dallas to participate in the Oncor Commercial Standard Offer Program & Commercial Solar Program by Resolution No. 22-0524.
FISCAL INFORMATION
Estimated Revenue: Capital Construction Fund $260,000.00
OWNER/EXECUTIVE
Oncor Delivery Electric Company LLC
Paul Jacks, Program Director Oncor Energy Efficiency