November 15, 2022
Economic Development
DATE: November 15, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Shasa Curl, City Manager
Lizeht Zepeda, Senior Business Assistance Officer
Subject:
Grant Funding from the Bay Area Air Quality
Management District (BAAQMD)
FINANCIAL IMPACT: No fiscal impact. The expenditures will be reimbursed by the $1,003,250 BAAQMB shore power grant.
PREVIOUS COUNCIL
ACTION:
N/A
STATEMENT OF THE
ISSUE:
City staff is seeking authorization to ratify and appropriate grant funding from the Bay Area Air Quality Management
District (BAAQMD).
RECOMMENDED ACTION:
ACCEPT and APPROPRIATE the $1,003,250 grant
award from the Bay Area Air Quality Management District (BAAQMD) to the City of Richmond’s Port Division - City Manager’s Office, Economic Development (Shasa
Curl/Lizeht Zepeda 510-620-6653).
DISCUSSION:
The City of Richmond’s Port Division has been awarded a $1,003,250 grant for shore power installation at Berths 7 and 8 at the Point Potrero Marine Terminal, Port of Richmond.
AGENDA
REPORT
November 15, 2022
The project will consist of the purchase and installation of the major infrastructure for shore power at Berths 7 and 8. These berths are currently active with the Port’s tenant, Auto Warehousing Company (AWC). AWC imports automobiles from Japan and China.
AWC receives one (1) or two (2) vessels a week for their roll-on/roll-off operations.
Shore power install will reduce the diesel emissions from vessels when docked. Once installed, having electrical power from the shore to a ship while docked will allow the vessel's auxiliary engines to be turned off and the burning of fuel, based on hydrocarbons to cease.
The funding comes from the State’s Volkswagen Mitigation Trust Fund Zero-Emission Freight and Marine Program grant. Volkswagen Environmental Mitigation Trust was established as part of a settlement reached between the United States District Court for the Northern District of California and Volkswagen for VW’s use of illegal diesel vehicles.
The Bay Area Air Quality Management District (BAAQMD) is administering the grant.
The Zero-Emission Freight and Marine Program provides funding for the replacement of airport ground support equipment (“GSE”), forklifts, port cargo handling equipment (“CHE”), the repower of marine engines to zero-emissions, and installation of shore power at berths in Regulated California Waters.
On May 28, 2021, the Port affirmed it is an “eligible applicant” under the Program for installation of shore power at berths category. The Air District confirmed the eligibility for Program funding based on cost-effectiveness, the Program Guidance, and the information provided on the City’s application. As part of the requirement, the City entered into a grant agreement with BAAQMD in July 2022. The Port will have until November 15, 2023, to install the shore power at Berths 7 and 8.
By January 1, 2025, the California Air Resources Board requires that roll-on and roll-off vessels implement measures to reduce oxides of nitrogen (NOx), reactive organic gases (ROG), particulate matter (PM), diesel particulate matter (DPM), and greenhouse gas (GHG) emissions while docked at berth. These funds will help the Port meet this goal.
DOCUMENTS ATTACHED:
Attachment 1 – Agreement