City Council
Report
City Council Meeting: May 13, 2025
Agenda Item: 4.D
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Office of Sustainability & the Environment
Subject: Acceptance of Clean Power Alliance (CPA) Innovation Fund Grant Award 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. Authorize the City Manager to accept a grant awarded in the amount of $249,100 from the Clean Power Alliance through its Clean Power Alliance Innovation Fund to develop a direct-to-renter electric appliance incentive 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 the budget amendment as outlined in the Financial Impacts & Budget Actions section of the report (requires 5 votes).
Summary
Adopted in 2019, the Climate Action and Adaptation Plan (CAAP) includes goals to reduce fossil fuel use in existing buildings and outlines the need to increase community resilience to climate change, prepare for extreme heat, and protect the groups that are most vulnerable to the effects of climate change. The City was awarded a one-time grant from the Clean Power Alliance (CPA) Innovation Fund in the amount of $249,100 which would help Santa Monica achieve these goals. The Office of Sustainability and the Environment, within the Public Works Department, would use these funds to develop an electric appliance incentive program for income-qualified Santa Monica renters. A portion of the grant funds would be allocated to The Energy Coalition (TEC) 2 of 4
to help design and implement the program. The majority of funds would be used to purchase the appliances, such as portable heat pumps to both heat and cool the home.
This program would run until funds are exhausted.
Discussion
The City’s Climate Action & Adaptation Plan (CAAP) includes goals to reduce fossil fuel use by 20% in existing buildings and ultimately achieve zero net carbon buildings across the City. The CAAP also outlines the need to increase community resilience to climate change, prepare for extreme heat, and protect the groups that are most vulnerable to the effects of climate change. Approximately 70% of Santa Monica residents rent their homes. As temperatures increase due to climate change, renters – especially lower-income residents of older buildings – experience uncomfortable temperatures in the summer because many older buildings in Santa Monica lack air conditioning and modern-day construction efficiencies.
To address this challenge, the City intends to utilize $249,100 awarded by the CPA Innovation Fund to develop a direct-to-renter incentive program, modeled after an appliance giveaway pilot in Pomona. The “Renters’ Energy and Cooling/Heating (REACH) program” would offer renter-friendly electric appliances, at no cost, directly to income-qualified Santa Monica renters who are served by the Clean Power Alliance.
Offerings would include portable heat pumps which provide an electric cooling and heating option for renters who generally cannot make permanent infrastructure changes in their homes. Portable heat pumps do not require permitting or electrical upgrades and involve a simple DIY set up compared to traditional heat pump installations that require a skilled professional. These heat pumps, also called micro heat pumps, are twice as efficient as fossil-fuel and electric-resistance systems and have the health and environmental benefits of not burning natural gas for heating, while providing a cooling option. Staff are exploring the feasibility of offering additional appliances like electric fans, electric cooking appliances, air purifiers, and portable batteries which can boost resilience and save residents money by allowing recipients to charge a battery during off-peak times when grid electricity is less expensive and then discharge the battery during on-peak times to power appliances.
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The City would partner with The Energy Coalition (TEC), a local non-profit organization promoting clean energy and affordability, to design the program criteria and offerings and assist with implementation. TEC has developed and managed a similar pilot program in Pomona, California, to provide portable heat pumps and batteries to incomequalified households, and to educate residents on best practices to save energy. The City’s partnership with TEC would utilize no more than $24,999 of the total grant allocation and would be under the threshold to require a competitive bidding process.
The remaining funds would be used to purchase appliances for participating residents.
Without renter-specific energy programs, low-income renters have few options to build resilience, find relief from extreme heat, improve indoor air quality, or manage their utility bills. This direct-to-renter incentive program would provide options and protect vulnerable communities from the impacts of a changing climate.
Environmental Review
The acceptance of the grant and use of grant funding for an electric appliance incentive program 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.” The program is administrative in nature and would provide monetary incentives for electric appliances directed at renters. Therefore, it can be seen with certainty that there is no possibility that the activity in question may have a significant adverse effect on the environment.
Past Council Actions
Meeting Date Description
05/28/2019 (Attachment A) Adoption of the Climate Action & Adaptation Plan Financial Impacts and Budget Actions
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Staff seeks authority to accept a grant from the Clean Power Alliance through its Clean Power Alliance Innovation Fund to develop an electric appliance incentive program for income-qualified Santa Monica renters.
Approval of the recommended action requires the following budget amendment.
FY 2024-2025 Grant Budget Amendment
Establish Revenue Budget Appropriate Funds
Account Number Amount Account Number Amount
20500010.407070 $249,100 20500010.556820 $249,100
If renewals are awarded, budget changes will be included in subsequent year budgets, contingent on Council budget approval.
Prepared By: Elias Platte-Bermeo, Sustainability Analyst Approved Forwarded to Council
Attachments:
A. May 28, 2019 Staff Report (Web Link)
B. Climate Action & Adaptation Plan (Web Link)
C. Written Comments