City Council
Report
City Council Meeting: April 23, 2024
Agenda Item: 5.G
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Office of Sustainability & the Environment
Subject: Approval to Accept U.S. Department of Energy's Energy Efficiency and Conservation Block Grant
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines;
2. Accept a grant awarded in the amount of $157,730 from the U.S. Department of Energy’s Energy Efficiency and Conservation Block Grant (EECBG) Program to fund an income-qualified electric bicycle (e-bike) voucher program in the Public Works Department, and to accept all grant renewals;
3. Authorize the City Manager to execute all necessary documents to accept the grant and all grant renewals; and
4. Authorize budget amendment as outlined in the Financial Impacts & Budget Actions section of this report (requires 5 votes).
Summary
Adopted in 2019, the Climate Action and Adaptation Plan (CAAP) lays out a comprehensive approach to achieve the City’s climate action and resiliency goals. The CAAP includes goals to drastically reduce emissions and to convert 50% of local trips to foot, bike, scooter and skateboard. In July 2023, Council directed staff to develop an electric bike point-of-sale subsidy program for low- and moderate-income Santa Monica residents. Staff has been awarded the U.S. Department of Energy’s Energy Efficiency and Conservation Block Grant (EECBG) in the amount of $157,730.00 and proposes using this grant to fund an income-qualified e-bike voucher program. This program would encourage climate-friendly active transportation in alignment with CAAP goals, 2 of 4
stimulate the local economy through partnerships with Santa Monica bike shops, and center equity by increasing access to e-bikes for income-qualified residents. Accepting this award would result in no net cost to the City.
Discussion
The City’s Climate Action & Adaptation Plan (CAAP) sets aggressive timelines for achieving carbon neutrality, zero waste, and water self-sufficiency. The CAAP targets an 80% reduction in carbon emissions below 1990 levels by 2030, and carbon neutrality by 2050 or sooner. According to the 2022 greenhouse gas emissions inventory, the City has achieved a 48% reduction and needs to cut an additional 32% of emissions in the next six years. The largest source of emissions in Santa Monica is the transportation sector, representing 68.5% of total emissions in 2022. Much of these transportation emissions come from local trips in gas-powered vehicles. E-bikes can effectively replace many local vehicle trips and provide residents with clean, efficient transportation.
In July 2023, the City Council directed the City Manager to present to Council an electric bike point-of-sale subsidy program for low- and moderate-income Santa Monica residents utilizing anticipated funding from the Department of Energy’s Energy Efficiency and Conservation Block Grant program (EECBG). The U.S. Department of Energy’s EECBG program is designed to assist states and local governments in implementing strategies to reduce energy use, to reduce fossil fuel emissions, and to improve energy efficiency. The program offers non-competitive funding to states and local governments based on population. In September 2023, staff presented to Council the concept for an e-bike point-of-sale voucher program for income-qualified residents funded by the EECBG program. In March 2024, the City was formally awarded EECBG funding in the amount of $157,730. Accepting this grant will allow staff to develop the proposed e-bike voucher program and begin distributing vouchers to income-qualified Santa Monica residents. Voucher recipients will be able to purchase eligible e-bikes and safety equipment from participating Santa Monica bike shops. The bike shop will apply the voucher as a form of payment and then submit an invoice to the City so that voucher 3 of 4
recipients avoid upfront payment. This grant will fund approximately 80 vouchers each valued up to $2,000.
Environmental Review
The acceptance of the grant and use of grant funding is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The grant is covered by the commonsense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.”
Past Council Actions
Meeting Date Description
05/28/19 (Attachment A) Adoption of the Climate Action & Adaptation Plan 07/18/23 (Attachment B) Council direction for staff to develop an electric bike pointof-sale subsidy program for low- and moderate-income Santa Monica residents utilizing anticipated EECBG
funding.
09/12/23 (Attachment C) City Manager's Report - Low-Income E-Bike Voucher Program
Financial Impacts and Budget Actions
Staff seeks authority to accept a grant from the U.S. Department of Energy’s Energy Efficiency and Conservation Block Grant (EECBG) Program.
FY 2023-2024 Grant Budget Amendment
Establish Revenue Budget Appropriate Funds
Account Number Amount Account Number Amount
20500010.406070 $157,730 20500010.556720 $157,730
Total $157,730 Total $157,730
If renewals are awarded, budget changes will be included in subsequent year budgets, contingent on Council budget approval.
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Prepared By: Elias Platte-Bermeo, Sustainability Analyst Approved Forwarded to Council
Attachments:
A. Adoption of the Climate Action & Adaptation Plan (Web Link) B. Council Direction for Staff to Develop an Electric Bike Point-of-Sale Subsidy Program for Low- and Moderate-Incom Residents (Web Link) C. City Manager's Report - Low-Income E-Bike Voucher Program (Web Link)