To: Sonoma County Board of Supervisors, Sonoma Water Board of Directors and the Sonoma County Public Financing Authority Board Members
Department or Agency Name(s): County Executive Office, Auditor-Controller/Treasurer-Tax Collector, Sonoma Water, and Sonoma County Public Financing Authority
Staff Name and Phone Number: Erick Roeser; Auditor-Controller-Treasurer-Tax Collector (3295), M. Christina Rivera, CEO, Terri Somers; SCEIP Program Mgr (6489), Rhianna Frank; Energy and Sustainability Manager (6483), Kathleen Parnell; Assistant ACTTC (6124)
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Sonoma County Energy Independence Program Semi-Annual Bonding Authorization
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Recommended Action:
Recommended action
A) Acting as the Board of Supervisors: Adopt Resolutions authorizing the Treasurer to invest in bonds issued by the Sonoma County Public Finance Authority, setting interest rates, and authorizing execution of various related agreements with the Sonoma County Public Finance Authority, including a bond purchase agreement and a loan agreement.
B) Acting as the Board of Directors of the Sonoma County Water Agency: Adopt Resolutions withdrawing funds from the Sonoma County Treasury Pool and authorizing the withdrawn funds to be invested in Sonoma County Energy Independence Program bonds as a long-term Sonoma Water investment.
C) Acting as the Board of Directors of the Sonoma County Public Finance Authority: Adopt Resolutions approving agreements with the County, authorizing continued issuance and sale of revenue bonds to fund the Sonoma County Energy Independence Program, and setting interest rates.
end
Executive Summary:
The Sonoma County Energy Independence Program (the “Program”) is required to come to the Board twice a year to authorize continued issuance of bonds that fund the Program. Staff is requesting authorization to issue bonds and enter into related financing agreements to continue the Program through September 30, 2026.
Discussion:
In September 2025, your Board authorized the issuance of Program bonds for the period of October 1, 2025 to March 31, 2026. Reauthorization is needed to ensure the continuance of an alternative financing mechanism that allows property owners to install improvements that contribute to the reduction of greenhouse gas emissions through the built environment, make buildings healthier, more durable and resilient to natural disasters.
In fiscal year 2025-26, to date, the Program approved funding for the following improvements: $90,197 in Energy Efficiency, $1,348,662 in Generation, $1,396,627 in Wildfire Safety, and $6,778 in Seismic. The number of bonded assessments from 7/1/25 through 4/1/26 has totaled 81 for a total amount of $4,502,041.69. The Program has twelve (12) Residential assessments yet to bond and (0) Commercial representing potential bonding of $674,041.05. The Program established a fiscal year bonding goal of $5.1M and is on target to meet that goal.
We will be coming back to your Board with a comprehensive program update on July 14, 2026.
Bond Issuance
The Program is bond financed and must be reauthorized per State statute. Since the bonds
carry a final maturity in excess of 5 years, Government Code section 53601 requires that your Board approve and authorize the Treasurer to make these dedicated investments. The Board previously established a $60 million program limit that reflects the total bond funding commitment from the Treasury ($45 million) and Sonoma Water ($15 million) collectively. There is currently $32 million in outstanding bonds and $28 million in available funding.
Due to the nature of SCEIP bonds issued by the Sonoma County Public Finance Authority, including variations in term lengths, bond issue dates and capitalized interest, interest cannot be accurately estimated in advance of issuing bonds. The Program does not incur any financing charges or fees paid to third parties, except for a small amount (expected to be less than $200) paid to the California Debt and Investment Advisory Commission in connection with filings for the bonds and $1,750 paid to outside legal counsel for the monthly bond issuance.
As of March 1, 2026, SCEIP is no longer entering into new assessment contracts for residential projects as directed by the Board at its meeting of July 8, 2025. Staff will monitor the activity of the commercial-only Program and return to the Board to provide a Program update on July 14, 2026.
With this item, staff is requesting authorization to issue bonds and enter into related financing agreements to continue the Program for the period of April 1, 2026 to September 30, 2026.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Climate Action and Resiliency
Goal: Goal 2: Invest in the community to enhance resiliency and become carbon neutral by 2030
Objective: Objective 2: Provide $20 million in financing by 2026 that incentivizes property managers and renters to retrofit existing multi-family housing towards achieving carbon neutral buildings.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
9/23/2025 - Sonoma County Energy Independence Program Semi-Annual Bonding Authorization
7/8/25 - Sonoma County Energy Independence Program Update and Recommendations
3/18/25 - Sonoma County Energy Independence Program Semi-Annual Bonding Authorization
9/17/24 - Sonoma County Energy Independence Program Semi-Annual Bonding Authorization
6/4/24 - Sonoma County Energy Independence Program Update, and Annual Interest Rate Determination
3/26/24 - Sonoma County Energy Independence Program Semi-Annual Bonding Authorization
9/19/23 - Sonoma County Energy Independence Program Semi-Annual Bonding Authorization
06/12/23 - Board authorization for the approval of Skylane LLC’s Sonoma County Energy Independence Program (SCEIP) financing application in the amount of up to $751,990.00
Fiscal Summary
Narrative Explanation of Fiscal Impacts:
There is no fiscal impact to this item.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
1. Authority Resolution Authorizing Bonds
2. County Resolution Approving Loan Agreements
3. County Resolution Approving Bond Purchase Agreements
4. County Resolution Consenting to Water Agency Investment in Bonds
5. Water Agency Resolution Requesting investment in Bonds
Related Items “On File” with the Clerk of the Board:
• Agreement 1: Form of Bond Purchase Agreement for Approval (April 2026 Authorization)
• Agreement 2: Form of Loan Agreement for Approval (April 2026 Authorization)