Bennett City Council Work Session: Dec 10, 2025 Electrification & Housing

On December 10, 2025, the Bennett City Council convened to review the electrification policy process and the Home Committee's housing incentive recommendations. The session featured updates on fee designs based on the social cost of carbon, with Councilor Norris declaring a potential conflict regarding her employer. The council deliberated on the scope of a proposed Joint Committee, the fee level determination, and the sequencing of policy development. Subsequently, the Home Committee presented three primary recommendations for housing incentives, followed by staff analysis and discussion.

Consent Calendar

• [No items listed in the transcript as being processed under the consent calendar prior to work session agenda start.]

Public Comments & Testimony

• [No dedicated public testimony section recorded in the transcript; engagement occurred during the presentation and discussion phases.]
• Note: Councilor Norris declared a potential conflict regarding her employer, Hayden Holmes, but expressed intent to seek legal advice while participating in the discussion.

Discussion Items

Electrification Policy & Fee Design

• Presentation: Cassie Lacey (Senior Management Analyst) and Danielle Walker (Brightline Group) presented an updated equipment cost analysis and a proposed fee structure based on the social cost of carbon ($215/ton). The fee targets natural gas appliances, abandoning the initial proposal to differentiate based on electric efficiency levels due to complexity and policy scope differences.
• Councilor Norris: Raised concerns about the grid's carbon intensity (Pacific Power at 27% clean energy) and argued the fee ignores upstream emissions, questioning the net carbon benefit if the grid is not yet clean. She noted Pacific Power is legally mandated to be 80% decarbonized by 2030.
• Councilor Platt: Argued that local emissions from gas appliances are within city control and that the fee aligns with the Climate Action Plan, distinguishing it from a broader carbon tax on the grid.
• Councilor Perkins: Expressed concern about grid reliability and household affordability, questioning if the proposed committee makeup adequately represents equity and industry expertise. She noted the city lacks a direct tenant union voice.
• Councilor Mendez: Advocated for immediate council decision-making on the fee level rather than delegating it to a committee, referencing the precedent of the transportation fee and the difficulty of the decision required.
• Councilor Riley: Disagreed with removing fee decisions from the committee, emphasizing the need for public engagement and expertise from builders and developers who are affected by the policy.
• Councilor Franzosa: Highlighted the State's energy strategy supporting electrification as a cost-effective path and affirmed alignment with the Climate Action Plan goals.
• Proposed Process: Councilor Platt proposed a "hybrid" approach where the Council sets the fee level directly by late February, while the Joint Committee begins work on non-financial incentives immediately and addresses fee exemptions/revenue use later.
• Committee Composition: The proposed Joint Committee includes members from the Economic Development Advisory Board, Affordable Housing Advisory Committee, and Environment & Climate Committee, with utility representatives as non-voting ex-officio members. Councilor Franzosa requested adding grid reliability as a specific policy question for the committee.

Housing Incentive Programs

• Home Committee Presentation: Sarah Odendahl (Chair) and Carly Colgan (Vice Chair) recommended three near-term tools: Site-specific Tax Increment Assistance for Affordable Housing (TIHAF), an Infrastructure Revolving Loan Fund, and Credit Enhancement.
• Staff Analysis: Jonathan (Urban Renewal) and Rachel Baker (Housing Division Manager) detailed the mechanics, risks, and staffing needs. They noted the TIHAF program is currently paused and requires policy revisions, including potential affordability threshold adjustments and clawback provisions. The Infrastructure Loan Fund aims to address barriers for small infill projects (4 units or fewer) to avoid prevailing wage triggers.
• Councilor Mendez: Concerned about developer default risk with loan funds versus the certainty of tax increments, though acknowledged the potential for high returns.
• Councilor Platt: Expressed nervousness about the staffing burden of reinstating TIHAF on Urban Renewal, which is also handling core area redevelopment plans. He suggested a delay to allow current projects to prove their success before expanding.
• Councilor Norris: Expressed concern about the impact on neighboring taxing districts and the need to wait for current projects to come to fruition before expanding.
• Councilor Franzosa: Noted the high staffing needs for the new programs and questioned the feasibility of the city's capacity to administer them all simultaneously without increased staffing.
• Councilor Riley: Expressed support for the Home Committee's recommendations and the need to address the production gap, particularly for middle-income housing.

Key Outcomes

• Electrification Fee Decisions: The Council agreed to Councilor Platt's proposal to have Staff bring two to three fee level options directly to the Council for a decision by the end of February, bypassing the Joint Committee for this specific element. The Joint Committee is directed to start in January to focus on non-financial incentives first, followed by fee exemptions and financial incentive use.
• Committee Charge: Staff is directed to prepare a resolution establishing the Joint Committee by January 7, incorporating the request to address grid reliability as a policy question.
• Housing Incentives: The Council expressed general support for the Home Committee's three recommended tools (TIHAF, Infrastructure Loan Fund, Credit Enhancement) but requested further staff analysis on:
  • Specific policy adjustments for TIHAF (e.g., lowering AMI thresholds, clawback provisions, homeownership options).
  • Staffing capacity analysis for administering all new programs.
  • Funding sources for the Infrastructure Loan Fund and Credit Enhancement (specifically non-restricted revenue streams like the Juniper Ridge fund).
• Timeline Adjustments: The Council decided to push back the Parks joint work session (originally scheduled for Feb 11) to facilitate the electrification and housing discussions, prioritizing those agenda items over economic development or transportation standards for the immediate future.
• Next Steps: Staff to present TIHAF policy updates by late Q1, with broader housing implementation plans and staffing needs proposed by the end of 2025 for 2027 implementation.