DATE:
October 8, 2024
CATEGORY:
Consent
DEPT.:
City Manager’s Office
TITLE: Energy Efficiency and Conservation Block
Grant Program Grant Funding
RECOMMENDATION
Adopt a Resolution of the City Council of the City of Mountain View Directing Staff to Apply for a Noncompetitive $148,0 10 Grant from the Formula Energy Efficiency and Conservation Block Grant Program, and Accepting and Appropriating Awarded Grant Funds to City Hall HVAC GHG Offsets, Phase I, Project 22-34-01 (Mountain View Senior Center), to be read in title only, further reading waived (Attachment 1 to the Council report).
BACKGROUND
The Energy Efficiency and Conservation Block Grant (EECBG) Program is a United States Department of Energy (DOE) program funded by the Bipartisan Infrastructure Law. EECBG allocates $550 million in total for clean energy investments nationally, in competitive grants and formula grants. The formula grant program allocates predetermined grant amounts for eligible local governments, tribes, and states. The City of Mountain View is an eligible agency with a formula grant amount of $148,010.
Although formula grant amounts are predetermined and noncompetitive, eligible agencies must submit an application and receive approval by the DOE in order to receive funding. This ensures that projects align with the desired outcomes of the EECBG Program. Eligible agencies may request funding for a wide variety of clean energy -related projects, such as electric equipment purchases and decarbonization planning. Applications are due on October 31, 2024. City Council authorization is required to apply for, accept, and appropriate grant funds in any amount.
On May 23, 2023
, Council took several actions related to the Mountain View Senior Center electrification project (Project 22 -34-01), including approving a scope amendment, transferring and appropriating $200,000 in additional City funding, accepting and appropriating $497,000 in grant funding (as part of a $567,000 grant from Silicon Valley Clean Energy), authorizing grant agreements, and authorizing a professional services agreement. If awarded, the EECBG funding would provide additional grant funding and cover a portion of the existing Senior Center electrification project scope.
Energy Efficiency and Conservation Block Grant Program Grant Funding October 8, 2024
ANALYSIS
Project Scope
The Senior Center electrification project includes the full replacement of two existing gas water heaters as well as gas kitchen appliances with electric appliances/equipment. The resulting system will be an all- electric heat pump for domestic hot water, augmented by a solar thermal water heating system. The Senior Center’s kitchen has a 10-burner gas stove, five gas ovens, and a gas-powered griddle, which will be replaced with induction stoves and other electric kitchen equipment. The new equipment will be powered by renewable energy from Silicon Valley Clean Energy’s (SVCE) “Green Prime” utility service. The EECBG funding would assist in covering electric equipment costs and lessen the financial impact of the project on City funding sources.
Progress and Next Steps
The project is in the design phase which is nearly complete along with the selection of electric equipment and appliances. Construction is anticipated to be completed by the end of 2025.
Staff will submit the EECBG grant application by October 31, 2024. The DOE estimates that applications will be reviewed and processed within 60 days of submittal. Once an application is approved, grant recipients have two years to complete the project and use grant funds, with the option to request a no -cost extension. Reimbursement is provided after the grant recipient submits proof of project completion.
FISCAL IMPACT
If awarded, the City of Mountain View would receive $148,010 in grant funding to support the Mountain View Senior Center water heating and kitchen electrification project. The grant program does not require matching funds. Staff requests an appropriation of $148,010 of grant funding revenue and expenditures to be allocated to Project 22-34-01.
City Hall HVAC GHG Offsets, Phase I, Project 22-34-01 (Mountain View Senior Center), has existing appropriated funding in the amount of $1,307,000. This includes $497,000 in grant funding already awarded by SVCE for this project. If the EECBG application is approved and the grant awarded, the updated appropriated funding will be $1,455,010.
Based on recent City project bid results, there is a possibility the construction bids received could exceed the current appropriated project funding when the project is advertised in 2025. In such an event, EECBG funds would help to cover the increased costs.
Energy Efficiency and Conservation Block Grant Program Grant Funding October 8, 2024
However, if the bid results received do not exceed the current appropriated funding, EECBG funds would enable existing allocated City funds to be transferred and reappropriated for other projects or programs.
LEVINE ACT
California Government Code Section 84308 (also known as the Levine Act) prohibits city officials from participating in any proceeding involving a “license, permit, or other entitlement for use” if the official has received a campaign contribution exceeding $250 from a party, participant, or agent of a party or participant in the proceeding within the last 12 months. A city official is similarly prohibited from accepting, soliciting, or directing a campaign contribution exceeding $250 from a party, participant, or agent of a party or participant to any proceeding involving a license, permit, or other entitlement for u se for 12 months after a final decision is rendered in said proceeding.
Please refer to the “X” in the checklist below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract
___ Labor or personal employment contract
_x_ General policy and legislative actions
For more information about the Levine Act, please see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html .
ALTERNATIVES
1. Do not direct staff to apply for a $148,010 grant from the noncompetitive formula Energy Efficiency and Conservation Block Grant Program.
2. Direct staff to apply for the noncompetitive formula Energy Efficiency and Conservation Block Grant Program to support new expenses for a different program , such as solar arrays or electric bike vouchers, that can be completed in two years
3. Do not authorize the City Manager or designee to execute grant documents to apply for and accept grant funds, and to execute any future amendments to the grant documents.
4. Provide other direction.
Energy Efficiency and Conservation Block Grant Program Grant Funding October 8, 2024
PUBLIC NOTICING
Agenda posting and emails sent to community members interested in sustainability.
Prepared by:
Denise Lin
Sustainability Analyst II
Approved by:
Audrey Seymour Ramberg
Assistant City Manager
DL/4/CAM
621-10-08-24CR
204453
Attachment: 1. Resolution