As Orange County’s green power agency repays millions of dollars from a loan to the City of Irvine, local leaders are looking to use those funds for future sustainability projects — potentially bolstering e-bikes and city-run shuttles.

Earlier this month, the Orange County Power Authority wired nearly $1 million to the city of Irvine — the first installment of a loan repayment the alternative energy provider used to get the power authority started in the first place.

Irvine loaned the green power agency $7.5 million when it launched at the end of 2020 to cover start-up costs and allow some cities to join the agency without committing to any spending up front.

With interest, the Orange County Power Authority is expected to pay back Irvine nearly $9 million. The first payment was wired on Nov. 10 and the next payment is expected in January 2026.

During the Irvine City Council’s meeting on Nov. 12, council members discussed using this loan repayment to fund future sustainability projects and efforts.

Council members voted unanimously to earmark repayment funds with a preference for projects regarding sustainability and mobility. Council members also expressed a preference for green projects specifically aimed toward low-income communities.

The item was proposed by Councilmembers William Go and Kathleen Treseder.

“I’m really glad to see this money coming back to our city,” Treseder said at the meeting. “It seems fitting that it would be allocated toward green infrastructure projects.”

She emphasized funds could be used for e-bike support, transit support and expanding the city’s Irvine CONNECT shuttle system.

[Read: Irvine Expands Free Shuttle System Bus Routes]

The council’s vote does not exclusively reserve the repayment funds for sustainability efforts, but council members unanimously approved a preference for the funds to be used for green projects.

“This is supposed to be the money for the city to advance renewable energy and our sustainability goal,” Councilmember Melinda Liu said at the meeting. “In the spirit of that, to continue this effort, I agree with the memo that we should probably invest this and earmark this extra portion of it on continuing our sustainability efforts.” 

“It’s taxpayer money,” she said, “it should be benefitting the taxpayers.”

Councilmember Betty Martinez Franco said she wanted to make sure some of the funding would benefit low-income communities.

“We cannot make low-income communities think sustainability if they don’t have food to eat,” Martinez Franco said. “They’re going to choose – always – to feed their kids rather than to invest in sustainability, but if we can help them get a little closer, we can do more.”

Councilmember James Mai, who serves on the Orange County Power Authority’s Board of Directors, helped negotiate with the agency to jumpstart the loan repayment process.

He said it would make sense for some of the funds to be used to cover expenses for next year’s Fourth of July celebration after costs for that event doubled to meet demand.

The city had originally budgeted $250,000 for next year’s Fourth of July Celebration, but after the traffic gridlock at this year’s event, city staff recommended that the budget be increased to $600,000 to accommodate needs for increased staffing, shuttles, vendors and planning. 

[Read: Irvine Doubles Fourth of July Budget After Great Park Traffic Nightmare]

Some public commenters at the meeting criticized council members for looking to spend money they haven’t back received yet.

Don Geller, chair of the city’s finance commission, said the repayment isn’t new money, adding this item wasn’t reviewed by the commission, so he was only speaking for himself, not on behalf of the finance commission.

“I’ve been advocating the expeditious return of the $7.5 million loan for a number of years now, and I’m very happy to hear that OCPA is finally working with us to pay the loan back,” Geller told council members. “Something important I would like to remind the council that this $7.5 million loan repayment is not additional income, it’s merely paying off a receivable.”

“Even though the council ultimately decides what the city’s financial priorities should be, I would recommend that these decisions go through the normal budgetary and financial review process and the money be returned to the general fund.”

Angelina Hicks is the Voice of OC Collegiate News Service Editor. Contact her at ahicks@voiceofoc.org or on Twitter @angelinahicks13.