STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 14, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Tim Rood, Community Development Director SUBJECT: Green Empowerment Zone Board Representative
RECOMMENDED ACTION:
Receive a presentation from County staff on the Northern Waterfront Green Empowerment Zone (GEZ); Ask any questions of City or County staff;
Take public comment; and
Approve a resolution appointing a Council Member and an alternate to represent the City on the GEZ governing board.
BACKGROUND:
In 2021 the Governor signed AB 844 (Grayson), which authorized the establishment of the Green Empowerment Zone (or “GEZ,”) for the Northern Waterfront Area of Contra Costa County and a portion of Solano County, Vallejo, and Benicia. The Green Empowerment Zone builds upon the comparative advantage provided by the regional concentration of highly skilled energy industry workers by prioritizing access to tax incentives, grants, loan programs, workforce training programs, and private sector investment in the renewable energy sector.
On September 12, 2023, the Board of Supervisors of Contra Costa County authorized an agreement with the Governor’s Office of Business and Economic Development (GO-Biz) in an amount not to exceed $5,000,000 to be used to provide administrative and other support services for the Green Empowerment Zone consistent with the State legislation AB 179, the Budget Act of 2022. The term of this Agreement is July 1, 2023 – June 30, 2026.
The Governing Board of the Green Empowerment Zone had its first meeting on December 7, 2023. As Assemblymember Tim Grayson acknowledged at the meeting, the Bay Area is home to the second largest oil refining center on the west coast, and thousands of high-paying union jobs. Considering the State’s commitment to carbon neutrality, it was imperative that there be an operational infrastructure to support the workforce in the transition into the next era of the energy economy. The goal of the GEZ is to establish a framework to ensure the transition to clean energy does not leave behind workers and ensures that the area remains a hub of the energy sector for years to come.
Related Programs
There is an existing landscape of programs, initiatives, and grant funding that are related to the Green Empowerment Zone and its enabling legislation. There are various programs and initiatives and grant funding that are already underway within the geography of the Green Empowerment Zone.
The County has two existing and complementary initiatives and grant funding— the Northern Waterfront Economic Development Initiative, and the Just Transition Economic Revitalization Plan—that are related to the Green Empowerment Zone and that are described below.
The Northern Waterfront Economic Development Initiative The Northern Waterfront Economic Development Initiative is a regional cluster-based economic development strategy with a goal of creating 18,000 new jobs by 2035. The Initiative leverages existing competitive advantages and assets by focusing on five targeted clusters (advanced transportation, advanced manufacturing, biomedical/biotech, ag tech & food processing, and clean tech). The initiative has an opportunity to change health, education, and economic outcomes in Contra Costa County for all residents of the Northern Waterfront communities, as described in the framework for community development. The hallmark of this initiative is the collaboration among the County and seven partner cities to enhance the economic vitality of the region.
The Just Transition Economic Revitalization Plan
The County submitted a signed Agreement with the U.S. Department of Housing and Urban Development in July 2023 for a $750,000 Community Project Funding Grant to fund the development of a Just Transition Economic Revitalization Plan (JTERP). The JTERP is a plan for transitioning away from an economy that is dependent on fossil fuels to a zero-emission and clean and green economy, and a plan for improving the health, safety, infrastructure, and job opportunities of residents in communities most impacted by the environmental burdens of the climate crisis. The County is committed to providing meaningful opportunities for sustained input from the community, with a special focus on highly impacted Environmental Justice communities, and workers, especially impacted workers. The community engagement will include a JTERP Advisory Table, which includes Sustainability Committee member(s), labor/impacted workers, environmental and frontline environmental justice community representatives, local government, business/industry, workforce development and training entities, the education sector, and academic partners. At the end of 2023, staff prepared a request for proposal for consultants who will provide assistance with community engagement, economic analyses, and other specialized studies on other topics related to the JTERP.
The Contra Costa Refinery Transition Partnership is an existing research effort funded by the California Workforce Development Board, led by the BlueGreen Alliance, that is planning for a refinery transition in Contra Costa County.
ANALYSIS:
Contra Costa County has invited the City of Hercules to participate in the Green Empowerment Zone (GEZ) for the Northern Waterfront Area of Contra Costa County as established by Assembly Bill 844 (Attachment 2).
The GEZ bylaws adopted in December 2023 provide that each of the Northern Waterfront cities, including Hercules, may appoint a representative to the GEZ governing board. The board meets on the third Friday of every other month in Martinez, with the remaining 2024 meetings scheduled for 9:30 am on April 19, June 21, August 16, October 18, and December 20.
The Council may wish to appoint both a representative and an alternate, as it typically does for regional bodies.
Alyson Greenlee, Economic Development Manager for Contra Costa County, will be available for questions.
FISCAL IMPACT:
There is no fiscal impact associated with this action.
ATTACHMENTS:
Attach 1 – Resolution
Attach 2 – Invitation letter from Contra Costa County