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November 12, 2024
ITEM TITLE
Grant Award and Appropriation: Accept Funds from the Department of Energy for the Energy Efficiency and Conservation Block Grant Program
Report Number: 24-0091
Location: Fire Station 5 at 341 Orange Ave, Chula Vista, CA, 91911 and Fire Station 3 at 100 Moss St, Chula Vista, CA, 91911
Department: Economic Development
G.C. § 84308: No
Environmental Notice : The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15303 Class 3 (New Construction or Conversion of Small Structures). Under the National Environmental Policy Act (NEPA), the activity is exempt p ursuant to Title 10, Part 1021 of the Code of Federal Regulations and the Department of Energy Environmental Guidelines.
Recommended Action
Adopt a resolution accepting $ 271,850 in grant funds from the United States Department of Energy for the Energy Efficiency and Conservation Block Grant Program and appropriating funds therefor . (4/5 Vote Required)
SUMMARY
As part of the Infrastructure Investment and Jobs Act of 2021 (IIJA), the Energy Efficiency and Conservation Block Grants (EECBG) program from the United States Department of Energy is providing formula grants to jurisdictions across the nation. The City is receiving $271,850 in EECBG grants to increase energy efficiency in municipal operations and reduce Greenhouse Gas (GHG) emissions. These funds will be used to purchase and install two semi-portable solar photovoltaic (PV) and battery-powered electric vehicle (EV) chargers for fleet and employee commute use and two EVs to replace traditional, internal combustion fleet vehicles. This new equipment will allow the City to expand its EV charging capacity and EV fleet with the goal of decreasing GHG emissions and local air pollution while increasing resiliency to grid outages and other emergencies.
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ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15303 Class 3 (New Construction or Conversion of Small Structures) because the proposed project would not result in a significant effect on the environment , create a cumulative impact, damage a scenic highway, or cause a substantial adverse change in the significance of a historical resource. Thus, no further environmental review is required. Under NEPA, the activity is exempt pursuant to Title 10, Part 1021 of the Code of Federal Regulations and the Department of Energy Environmental Guidelines.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable
DISCUSSION
As part of the Infrastructure Investment and Jobs Act of 2021, the Energy Efficiency and Conservation Block Grants program from the United States Department of Energy was funded with $550 million to assist states, local governments, and Tribes in implementing strategies to reduce energy use, to reduce fossil fuel emissions, and to improve energy efficiency. The funds are distributed to eligible entities through a formula and, for local governments and Tribes not eligible for a formula grant , though a competitive application process. The City of Chula Vista qualified for a formula grant of $271,850.
This is the second round of EECBG funding the City has received. The first was a part of the American Recovery & Reinvestment Act of 2009 , where $1,974,300 in EECBG funds were appropriated to the City on January 5, 2010. Those funds were used to install solar PV on municipal facilities, to support the adoption of biodiesel for City fleet vehicles, and to support financing and incentives for commu nity members making energy efficiency upgrades to their homes.
In alignment with funding requirements, grant funds should be expended by grantees within 12 months from the award start date. Funds may be used to cover direct and indirect costs incurred by the project ; and grantees will be required to comply with all applicable federal, state, and local laws, rules, and regulations.
Proposed Use of Grant Funding:
Staff applied to use the funds to help electrify the City’s fleet because the transportation sector produces the most greenhouse gas ( GHG) emissions in Chula Vista and the state . While the City has seen significant progress in electrifying its fleet with the installation of 123 EV chargers for fleet and employees though SDG&E Power Your Drive Program and the adoption of 33 electric vehicles, or 6% of the fleet, there are some smaller facilities that have not been able to participate in previous programs. All known EV charging infrastructure support programs have a minimum set number of chargers that need to be installed so smaller facilities, like fire stations, have not been able to take advantage of these programs.
Traditional EV charging options that connect to a building’s electricity can have long construction timelines and high installation expenses, so staff evaluated a semi-portable option powered with solar PV panels and batteries to eliminate the need for infrastructure improvements to connect to a building . These types of chargers provide a slower charge to th e EV and are limited by solar availability and the size of the battery .
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Since staff at the proposed facilities are typically at these locations for longer periods due to length of work shifts, they should be able to get a full charge. Additionally, because the chargers are powered by solar panels, they will not increase the City’s electricity bills like traditional chargers and can provide emergency backup power during grid outages or other emergencies. The units are planned to be piloted at Fire Station 5 (341 Orange Ave, 91911) and 3 (100 Moss St, 91911). Both stations serve areas of the City designated as disadvantaged by both the state and the City’s Climate Equity index , and Fire station 5 is located in a disadvantaged census tract. The units include a five-year warranty, including maintenance and repairs, so staff will not be responsible for repairing the units during the pilot.
Grant funds will also be used to purchase two medium duty EVs to continue the fleet electrification. To date the City’s fleet is made up of 44% alternative fuel vehicles (6% EV, 12% hybrid, 3% plug-in hybrid and 23% renewable diesel). The new light duty vehicles will be able to charge at existing fleet EV charging facilities and will help reduce GHG emissions and increase local air quality.
Anticipated Amount of
Grant Funds Allocated
Description of Proposed Work Grant Focus Areas
$160,000 Expansion of EV charging for fleet vehicles and employee commute use by purchasing two
solar PV and battery powered semi-portable
electric vehicle (EV) chargers. One will be
placed at a City facility with a high Climate
Equity Index score.
Clean energy
adoption
Carbon emissions
reduction
Climate equity
Energy resilience
$111,850 Expansion of the fleet electrification by
purchasing or helping to purchase three EVs to
replace fossil fuel powered vehicles.
Clean energy
adoption
Carbon emissions
reduction
Climate equity
Increase local air
quality
Based on product availability, sta ff has flexibility to make necessary adjustments regarding the use of the grant but will ensure compliance with grant guidelines, as listed in Attachment A , and the EECBG program Pre-Award Information Sheet, Attachment B . Staff will provide a performance and impact update to the Sustainability Commission and City Council after the work related to the grant is complete. Where possible, staff will utilize the Climate Equity Index (CEI) to prioritize communities within Chula Vista that have been most impacted by pollution, climate change , and historical racism. The CEI was created in 2020 with community stakeholders and is an effort to look at environmental and historic disparities within Chula Vista.
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Conservation staff have worked closely with internal departments on the needs assessment, planning, logistics, and deployment of these new city assets.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property -related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of this resolution will result in the acceptance of $271,850 in grant revenues from the Energy Efficiency and Conservation Block Grants program from the United States Department of Energy and an increase in appropriations of $ 271,850 to the Supplies and Services category of the Economic Development Section of the Federal Grants Fund. Matching funds are not required to receive the grant.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the General Fund as a result of applying for and accepting this grant.
ATTACHMENTS
1. Energy Efficiency and Conservation Block Grant (EECBG) Program Voucher Handbook
2. EECBG program Pre-Award Information Sheet
Staff Contact: Coleen Wisniewski, Environmental Sustainability Manager Cory Downs, Conservation Specialist