June 21, 2022
Economic Development
DATE: June 21, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Shasa Curl, City Manager
Samantha Carr, Environmental Manager
Sabrina Paras, Sustainability Specialist, CivicSpark
Fellow
Subject:
Contract Amendment for Low -Income Solar Installation
Services
FINANCIAL IMPACT: The contract shall be funded by ECIA Greenhouse Gas (GHG) Mitigation Funding and will not impact the
City’s General Fund. Previously, the City Council
programmatically approved utilizing a portion of the
ECIA funds to provide solar installation services to
low-income households. The contract amendment of
$1,750,000 is to serve an additional 138 households
over 3-years and includes GRID’s administrative costs
(11771018 400549 2A1EC).
PREVIOUS COUNCIL
ACTION:
May 21, 2019
STATEMENT OF THE
ISSUE:
City staff is seeking City Council approval for a fourth contract amendment with the non-profit, GRID
Alternatives Bay Area to continue installing no cost
solar on low-income Richmond homes, utilizing
funding from the Chevron Environmental and
Community Investment Agreement.
AGENDA
REPORT
June 21, 2022
RECOMMENDED ACTION:
APPROVE a fourth amendment to the contract with
GRID Alternatives Bay Area to provide no cost solar
systems on an additional 138 low-income homes,
increasing the contract by $1,750,000 , for a total contract amount not to exceed $3,150,872, and extending the
term to June 30, 2025 - City Manager’s Office, Economic Development (Samantha Carr/Sabrina Paras 620-5407).
DISCUSSION:
Background
GRID Alternatives Bay Area is a nonprofit licensed solar contractor leading teams of volunteers and job trainees to install solar electric systems exclusively for low-income families. Since GRID’s first solar installation in the City of Richmond in 2007, GRID has completed 487 solar installations for low-income homeowners in Richmond - including 185 under the previous Environment and Community Investment Agreement (ECIA) contract beginning in 2015.
As of June 2022, a total of 487 Richmond homes have received no cost solar through GRID Alternatives totaling 1,584 kilowatts DC of clean power installed. Over the projected lifespans of these systems, Richmond families will save approximately $6.78 million, while eliminating over 12,604 tons of greenhouse gas emissions, which is the equivalent of taking 2,412 cars off the road for one year.
These installations have provided paid work opportunities for Richmond residents, as well as hands-on training for hundreds of volunteers and job seekers as a pathway to employment in the growing solar industry. Additionally, these solar projects have generated an estimated $110,000 in permit fees for the City of Richmond.
The City of Richmond’s investment in creating a no-cost solar installation has significantly increased participation opportunities for low-income households, as demonstrated by the City’s ECIA contributions in 2019. The information below is accessible on the City’s Transparent Richmond Open Data Portal.
June 21, 2022
Contract Amendment Deliverables
During the three-year cycle, GRID will complete no-cost solar for an additional 138 low- income families, serving 46 households each calendar year and generate more than $5.139 million in benefits for Richmond residents overall. In addition to solar installations, GRID will provide related services to enable and maximize the benefit of the solar installations, including needed roof repairs and replacements, electrical upgrades for new service panels, and electric vehicle readiness. On average, each
GRID solar systems installed since 2015
partnership period, which more than doubled
the total number of GRID solar systems in
Richmond.
June 21, 2022
solar system installed saves the family $16,500 in energy cost savings and offsets 30+ tons of harmful Greenhouse Gas emissions.
GRID’s model also provides hands-on training opportunities for green job trainees, such as participants of RichmondBUILD, and increases community engagement volunteerism in the City of Richmond. Over the next three years, the solar installations made possible by our partnership can have the following impacts:
Total number of families served: 138
Kilowatts (DC) installed: 396 kw DC
Total cost savings for Richmond residents over the systems’ lifetimes:
$2,956,708
Total Greenhouse Gas emission eliminated over the systems’ lifetimes: 5,643 tons
Total hours of hands-on skill building for volunteers and job seekers: 5,760 hours Total number of main service panels brought up to code for Richmond Residents: 60
Total number of roofs repaired or replaced for Richmond Residents over 3 years:
30 Total number of EV-ready homes: 40-60+*
Estimated number of EVs deployed: 20+
Total expected permit fees generated for the City of Richmond: $82,560 Total Richmond ECIA Contribution: $1,400,872
Total leveraged dollars from State and philanthropic funds: $1,655,049
Leveraged Funding
GRID brings in funding support both through their fundraising efforts as a registered 501(c)(3) and through leveraging state and local rebates as well as other funding streams intended to encourage the deployment of renewable energy in low-income communities. GRID’s advocacy efforts locally and nationally on behalf of low-income communities have both extended and created additional funding opportunities at scale for this work. The funding comes from Cap-and-Trade dollars through the California Department of Community Services and Development; the Disadvantaged Community DAC-SASH program administered by the California Public Utilities Commission; a solar financing partnership that allows GRID projects to leverage the Federal Solar Investment Tax Credit (ITC); and designated dollars for case management and resource provision in electric vehicle deployment. GRID continues the administrator role for the DAC-SASH statewide program for the next seven years. GRID is uniquely able to leverage additional funding sources for our clients and streamline the client experience, bringing an estimated $1,522,202 in matching dollars to projects in the City of Richmond through these programs.
June 21, 2022
POLICY SYNERGIES:
The following synergistic implementing actions and policies are included in the City’s General Plan:
Policy EC3.1 Renewable Energy directs the City to “promote the generation, transmission and use of a range of renewable energy sources such as solar, wind power and waste energy to meet current and future demand and encourage new development and redevelopment projects to generate a portion of their energy needs through renewable sources.”
Goal HW10 Promote Green and Sustainable of the Health and Wellness Element directs the City to “promote green and sustainable development and practices to support a healthy local economy, protect the environment and improve quality of life for all residents.”
Policy EC5.1 Green Businesses and Jobs of the Energy Efficiency and Conservation of the Climate Change Element directs the City to “promote a green economy that can provide new jobs in the emerging green industry. A cluster of green businesses can provide goods and services to support the growing need for clean and sustainable technologies, fuels, vehicles, and equipment, while providing jobs and training to Richmond residents. The green economy can support Richmond’s economic development and environmental protection goals.”
The following synergistic implementing strategies are included in the City’s Climate Action Plan:
Strategy EE1: Leverage Existing Programs and Rebates to Improve Efficiency of Existing Buildings
Strategy EE4: Outreach and Education to Promote Energy Conservation and Renewable Energy
Strategy RE1: Increase Local Solar Energy Generation
Strategy RE3: Promote Conversion From Natural Gas to Clean Electricity Strategy TL7: Promote Low-Carbon Vehicles and Fuels
Strategy GB2: Green Workforce Development
Strategy GB4: Support Participation in Local Energy and Green Business Programs
Strategy RC2: Increase Resilience of Local Housing to Climate Change
DOCUMENTS ATTACHED:
Attachment 1 - Fourth GRID Contract Amendment
Attachment 2 - GRID Contract Amendment No.3 Executed
Attachment 3 - GRID Contract Amendment No.2 Executed
Attachment 4 - GRID Contract Amendment No.1 Executed
Attachment 5 - Standard Contract Executed