April 16, 2024
Economic Development
Port Division
DATE: April 16, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Charles Gerard, Port Director
Nannette Beacham, Economic Development Director
Lizeht Zepeda, Senior Business Assistance Officer
Subject:
Authorization to Apply for Environmental Protection
Agency Grants
FINANCIAL IMPACT: There is no fiscal impact related to the adoption of this Resolution; however, if grant funds are awarded, it would positively affect the Port Fund.
PREVIOUS COUNCIL
ACTION:
N/A
STATEMENT OF THE
ISSUE:
City staff members are seeking City Council authorization to submit grant applications to the United States
Environmental Protection Agency (EPA) – for any and all grants for which the Port of Richmond is eligible, and if any grants are awarded to Accept and Appropriate into
the budget.
RECOMMENDED ACTION:
ADOPT a resolution AUTHORIZING the city manager or
their designee to submit grant applications for any and all United States Environmental Protection Agency grants
for which the Port of Richmond is eligible, and to execute all necessary and related agreements; and to ACCEPT
and APPROPRIATE grant awards into the Port Fund –
Economic Development Department (Charles
Gerard/Nannette Beacham/Lizeht Zepeda/510-215-
4600).
AGENDA
REPORT
April 16, 2024
DISCUSSION:
The Inflation Reduction Act of 2022 provided the United States Environmental Protection Agency (EPA) with three billion dollars to fund zero-emission port equipment and infrastructure as well as climate and air quality planning at U.S. ports. The program will build on EPA’s Ports Initiative that helps ports, a critical part of our infrastructure and supply chain, address public health and environmental impacts on surrounding communities.
On February 28, 2024, EPA announced two separate Notices of Funding Opportunities (NOFO) to disburse the allocated three billion dollars, the Zero-Emission Technology Deployment Competition and the Climate and Air Quality Planning Competition. The two NOFOs will be used to fund approximately $2.8 billion in zero-emission technology deployment at ports, as well as approximately $150 million for climate and air quality planning.
Both NOFOs have a deadline of May 28, 2024. EPA anticipates notifying selectees by September 2024 and awarding the grants by December 2024.
Clean Ports Program goals:
Build a foundation for the port sector to transition over time to fully zero- emissions operations, positioning ports to serve as a catalyst for transformational change across the freight sector.
Reduce diesel pollution (criteria pollutants, GHGs, and air toxics) in near-port communities.
Help ensure that meaningful community engagement and emissions reduction planning are port industry standard practices.
On Thursday, March 28, 2024, Port staff submitted a notice of intent to apply. The Port is interested in applying for the Inflation Reduction Act Clean Ports Program: Zero- Emission Technology Deployment Competition.
The Zero-Emission Technology Deployment Competition will fund zero-emission port equipment and infrastructure to reduce mobile source emissions (criteria pollutants, air toxics, and/or greenhouse gases) at U.S. ports, delivering cleaner air for communities across the country.
The Port of Richmond encompasses five (5) City-owned and nine (9) privately-owned terminals that operate dry bulk, break-bulk, and automobile processing facilities called RORO for roll-on, roll-off. California Air Resources Board’s (CARB) State Implementation Plan, AB 617, California Climate Change Scoping Plan, Mobile Source Strategy, and California Sustainable Freight Action Plan (Executive Order B-32-15) include commitments to evaluate the existing 2007 At-Berth Regulation for opportunities to further reduce emissions from vessels. These actions include developing a new At-
April 16, 2024
Berth Regulation to achieve further emission reductions by including smaller fleets, additional vessel types (such as roll-on/roll-off vehicle carriers and tankers), and additional operations.
The Port is working to implement emissions controls as required by January 1, 2025, for roll-on/roll-off (RORO) vessels. This regulation requires that all ships at berth connect to shore-based electrical equipment to power a vessel’s systems rather than operate onboard fossil fuel powered electrical generators. The Port is working to implement a shore power system at the Point Potrero Marin Terminal and Terminal 2. The Port has received one million dollars in grant funding from the Bay Area Air Quality Management District (BAAQMD) Volkswagen Mitigation Trust Fund Zero Emission Freight and Marine Program Grant Agreement. The funding is being used to design the upgrades to conductors and electrical equipment between the Point Potrero Marine Terminal and its substation along Cutting Boulevard. The Port has determined the budget to complete the shore power installation is about $7.1 million. Port staff is currently working with a grant writer to complete the project with additional grant funding.
With the 2025 deadline fast approaching, the Port is looking to leverage the application to the Zero Emission Technology Deployment Competition by purchasing an emission capture barge for the RORO operation. The barge will keep the Port in compliance with all state and federal mandates.
The EPA requires City Council authorization for each grant submittal, or a general resolution authorizing staff to submit applications. City staff members are seeking City Council authorization for the next five (5) years to submit grant applications for all grants offered by EPA for which the City is eligible (Attachment 1).
DOCUMENTS ATTACHED:
Attachment 1 – EPA Resolution to Apply for Grants
Attachment 2 – Notice of Intent to Apply for EPA Zero Emission Technology Deployment
Attachment 3 – Port Plan for Ocean-Going Vessels