Sunnyvale City Council
June 25, 2024

Community-Scale Reusable Foodware
System Design & Implementation
Workplan for Santa Clara County & San Benito County Coalition (Cities of Sunnyvale, Mountain View, Cupertino, and San Jose, and County of San Benito) Overall Project Summary and Approach
a. Description of GHG Reduction Measures
Single-use waste is a growing problem. Containers and packaging contribute over 23 percent of material reaching landfills in the U.S., 1 and the last few years in particular have seen the consumption of single-use plastics, including packaging and disposable foodware, increase by 250 to 300 percent. 2 To address the growing waste problem, reduce emissions associated with single-use models, and begin to push a transformative shift towards reuse, the proposed GHG reduction measure is the design and implementation of a community-scale reusable foodware system for a coalition of communities in Santa Clara and San Benito Counties led by the City of Sunnyvale.

A community-scale reuse system is specifically included in the County of San Benito and County of Santa Clara Priority Climate Action Plan (PCAP) as measure COM-3: Develop a Community-Scale Reuse System.

See page 30 of the attached PCAP for additional information. The system will operate within the coalition of communities submitting this application, which is led by the City of Sunnyvale and includes the Cities of San Jose, Mountain View, and Cupertino, and the County of San Benito.

A reusable foodware system provides ‘foodware as a service’ to foodservice establishments (FSEs) to replace single-use foodware, such as cups and takeout containers. In such a system, a reusable foodware service provider supplies FSEs with reusable foodware in exchange for a per-use fee, similar to how FSEs currently purchase single-use products. FSEs are then able to serve food and drinks to their customers in those reusable items. Customers then return the reusable products to conveniently placed collection bins when they are finished using them. A reusable foodware service provider then collects, cleans, inspects, and repackages the reusable foodware items before once again redistributing them to FSEs.

The system is designed to be immersive and convenient for all, profitable for the reuse service provider(s), free or low cost to users, and comparable in cost to using disposable products for participating businesses. A document that illustrates the Physical Nodes of a Community-Scale Reuse System, developed by Perpetual through its ongoing work to establish community-scale reuse systems in four U.S. cities, is included as an attachment.

Reusable foodware systems offer a compelling solution to the waste and pollution generated by single-use foodware. Life-cycle assessments (LCAs), academic studies, startup programs, pilots, and ongoing reuse operations have repeatedly shown that, even when including impacts associated with washing and logistics, reusables can result in 2 to 10 times less lifecycle GHG emissions than disposable alternatives, in addition to waste generation, litter, and other pollution benefits.3 Pilots and startups deploying reusable items have proven that the technical capabilities exist and users can have a great experience.4 With sufficient scale, reusable foodware can be affordable and reliable for businesses. And when reuse systems are implemented community-wide or on a regional level, returning foodware is convenient for customers and can become the social norm. 5 Non-profit Perpetual, a partner on this project committed to assisting with the system design and implementation, is currently working to 5 Unpacking Customer Perspectives on Reusable Packaging, Closed Loop Partners, 2018 4 Moss, 2022
3 Hitt, 2023; Gordon, 2023; Lelong, 2023; Reloop & Zero Waste Europe, 2020 2 Upstream, Reuse Wins.
1 EPA, 2014
1 Attachment 2

establish and validate just that - city-scale, community-centered, immersive reuse systems for foodware - in four cities around the U.S. 6
The benefit is clear: well-designed reuse systems have the potential to be better than disposable foodware for the environment, businesses, people, and their communities. The challenge is establishing reusable foodware infrastructure and systems at sufficient scale to serve entire communities. With solar and wind electrical generation, the technological development required funding, and subsidies are still required to increase market adoption until the technologies become cost competitive with conventional power generation. With reusable foodware systems, funding support is similarly needed to overcome the capital investment required to purchase and install existing technology and equipment, and to subsidize operations until they get to critical volume and can be self-sustaining. One significant difference is that reusable foodware programs can achieve scale and cost competitiveness on a significantly shorter timeline because the technologies and equipment already exist and are mature. In a study from Zero Waste Europe, payback times were short as 3-4 years for this type of reuse model. 7 Another difference is that, unlike solar panels and wind turbines, reusable foodware programs should be thoughtfully designed to fit the unique characteristics of the communities where they are implemented.

This presents an opportunity to implement systems heavily influenced by public input which can facilitate adoption through fostering community excitement and buy-in.

This proposal seeks funding for the necessary tasks and infrastructure investments to establish an effective reusable foodware system that achieves this scale. This funding would enable the procurement of the equipment and supplies for a comprehensive system design and implementation effort which includes:

A. a stakeholder engagement and community participatory design process; B. geospatial modeling of foodware flows within the city to determine optimal placement of assets and routing for collection and redistribution;
C. a parametric Life Cycle Assessment model that can run scenario analysis to assess impacts of system design choices;
D. Circularity Assessment Protocol (CAP) to provide a snapshot of a city’s circularity and current foodware and plastic packaging flows;
E. design for human behavior;
F. reusable foodware system governance structure;
G. procurement and installation of infrastructure and equipment; H. competitive process for selecting reusable foodware service provider(s) to operate the system; I. recruiting of restaurant and hospitality businesses and schools to participate in the foodware service; J. hands-on support during the launch of the system.

The final system design and items to be purchased will be determined through the community consultation and participatory design processes, with expert consultation on technical requirements, and the selection of a reuse service provider(s) to operate the system. The initial system design and enrollment efforts will be focused on restaurant takeout and delivery and reusable foodware for K-12 public schools. However, once the infrastructure is built, the system will be able to serve additional use cases, including providing reusable foodware to institutions like food courts, event spaces, corporate cafeterias, campuses, and stadiums; expanding to additional packaging formats; working with meal delivery services; and partnering with the Santa Clara County Food Recovery Program edible meal recovery and food distribution efforts. Partnering with the edible meal recovery efforts is in response to California’s Senate Bill 1383 requirements of edible food generators, to provide reusable foodware options for edible food recovery and distribution, where food that would otherwise go to waste is collected and redistributed to local food programs.

We anticipate the system will be expanded and replicated in neighboring communities either organically (e.g., service providers self-funding expansion) or through additional communities seeking grant funding 7 Zero Waste Europe, 2023
6 These cities are: Hilo, Hawai’i; Savannah, Georgia; Ann Arbor, Michigan; and Galveston, Texas 2 Attachment 2

after witnessing the transformative nature of this coalition project. In either scenario, the funding for this project will catalyze greater environmental, social, and economic benefits.

Restaurant Takeout and Delivery
Virtually all restaurant takeout and delivery happens in single-use, disposable containers, resulting in nearly one trillion disposable food service products used each year in the U.S. 8 In the coalition area, more than 345 million single-use cups and containers are used and thrown away each year .9 In recognition of the exponentially growing problem of plastic waste, some steps have been taken to move away from plastic. Across the country, ordinances have been passed banning expanded polystyrene (Styrofoam), limiting single-use products like straws, or requiring that restaurants use compostable or recyclable containers. Many restaurants have voluntarily taken steps to move away from single-use plastics. However, the other single-use products that take their place have their own environmental impacts. Compostable bio-based products, for example, even when composted properly do not necessarily have lower Global Warming Potential (GWP) than plastics made from petrochemicals; when landfilled or incinerated, which they most often are, they have higher GWP . Paper packaging also produces greater lifecycle emissions than comparable plastic products. Across almost every environmental measure, reuse is better for the environment.10 Besides environmental impacts, there are detrimental health impacts as microplastics from food and beverage packaging leach into the food and drinks being consumed.11
Reusable foodware programs for to-go food and drinks have been slowly gaining traction in Europe, Asia, South America and the U.S., with 38 cup and container programs in the U.S. as of 2022, and 56 in Europe.12 These small-scale programs have proven that these systems can work technically - tracking technology, durable and appealing cup and container design, high-efficiency washing, and optimized logistics - but without the supporting ecosystem of infrastructure and messaging, the scale needed for the economics to work has been elusive. There are growing efforts to achieve this scale, and several cities in Europe have launched or are in the process of launching ambitious reuse systems for takeaway or delivery, which may catalyze further adoption.13
In the move towards reuse, a key barrier is the difficulty of competing with the dominance of single-use models, along with logistics challenges. To change behavior and consumption paradigms, individual restaurants cannot compete with disposable culture on their own, and the logistics need scale and upfront investment to be overcome. There needs to be comprehensive, system-level change that happens at an immersive and community-wide scale. The proposed measure would set up the infrastructure and system that would support exactly this type of community-scale reuse and would unlock the benefits of reuse while helping to shift the market and culture towards a more sustainable alternative.

K-12 Schools
During the 2022-2023 academic year, California’s 5.8 million public K-12 school students ate approximately 826 million meals, the vast majority of which were served on single-use foodware. In the coalition areas, this meant that approximately 250,000 students at the communities’ ~420 K-12 public schools ate most or virtually all school meals on single-use foodware. Schools are aware of the negative environmental and health impacts of exposure to certain PFAS via usage of single use food serviceware (such as links to kidney, testicular, breast cancers and other health effects including hormone disruption, damage to the immune system, thyroid disease, reduced growth hormones in children, increased cholesterol levels14), but have difficulty switching to reusable dishwashing systems at each school site. 14 CEH, 2020
13 https://zerowasteeurope.eu/press-release/launch-of-eric-project-empowers-local-authorities-to-prevent-plastic-waste-production/ 12 Living Landscape of Reuse Solutions - www.reuselandscape.org 11 Jadhav et al, Microplastics from food packaging: An overview of human consumption, health threats, and alternative solutions, 2021. https://www.sciencedirect.com/science/article/abs/pii/S2215153221001835 10 Upstream, Reuse Wins.
9 See the Technical Appendix for calculation details.
8 Upstream, Reuse Wins.
3 Attachment 2

Despite case studies showing savings when schools switch to reusables, many school districts are reluctant to systematically install dishwashers at each school site due to increased labor costs, concern over maintenance of dishwashers and, for some, a trend to move towards dry kitchens and less food preparation at each school.15
Community dishwashing hubs represent a paradigm shift towards the circular economy. School districts are an ideal anchor client for these community dishwashing hubs for three specific reasons. ● Schools have consistent volume:
○ School meal programs represent a highly predictable quantity of daily business compared to other markets (e.g., events, individual restaurants).
○ This helps counteract the impact on operational efficiency from a less consistent quantity of products generated by individual restaurant takeout and delivery orders. ○ Schools’ foodware usage is typically counter-cyclical with tourism, allowing for load-balancing and high utilization of washing facilities.
● High volumes at individual sites:
○ Cost effectiveness is maximized when collecting and delivering large quantities of products to the fewest number of individual locations.
○ A medium-size school district might generate approximately 20,000 product washes per day from a handful of schools.
● Closed loop system:
○ Reuse providers can easily collect used products at the same time they are delivering clean foodware on a daily basis.
○ Due to their contained nature, closed loop systems often achieve higher return rates yet require minimal investment for education and signage.

Role of Coalition
The coalition will provide oversight and support to contracted or sub-awarded organizations to lead the system design and implementation. Each coalition member will attend regular meetings, review budget and expenditures, provide input and review of key decisions, and leverage existing city or county communications channels and connections to improve stakeholder engagement, community outreach, and system adoption. The City of Sunnyvale, as the coalition lead, will administer the grant funds, pass funds through to coalition members and sub awardees, and be responsible for reporting to and communicating with the EPA. The City of Sunnyvale will submit an MOA signed by all coalition members by July 1, 2024 that outlines members’ roles and responsibilities in more detail.

Throughout this project, we intend to leverage the resources and expertise of Perpetual, one of our nonprofit project partners, which has experience implementing these types of community-scale reuse projects in other locations. We intend to make a subaward to Perpetual to support their involvement in the system design. See the attached Letter of Commitment from Perpetual.

Our coalition recognizes the pervasive issue of single-use waste and the negative environmental and community impacts that come from our use of disposables, and each of us has taken steps to try to address it, from enforcing ordinances to testing pilots. The City of Sunnyvale, in exploring a Disposable Foodware Ordinance that would mandate restaurants use reusable foodware for dine-in services, has tested a reusable foodware pilot where 14 participating restaurants used reusables for dine-in customers.16 Santa Clara County’s Recycling and Waste Reduction Commission Technical Advisory Committee (TAC) is working on a Request For Proposals (RFP) for a pilot to switch 3 schools within the County to reusables. City of Mountain View, in partnership with the Clean Water Fund, worked with ReThink Disposable to assist food service businesses in transitioning from single-use disposable foodware to reusable alternatives, signing up 20 participating businesses. The City of Mountain View has also been part of targeted partnerships, for example to provide reusable beer cups at the annual Art & 16 https://www.sunnyvale.ca.gov/Home/Components/News/News/230/111 15 Plastic Free Restaurants, 2023
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Wine Festival in 2023, and uses Sparkl reusable foodware for City-employee events (plates, utensils, cups), as well as for Earth Day in 2023. In San Benito County, the City of San Juan Bautista has an ordinance banning polystyrene and requiring recyclable or compostable containers for restaurant takeout. In the City of Cupertino, the Single-Use Plastics Ordinance aims to reduce plastic waste by limiting the unnecessary use of single-use plastic foodware and instead requiring fiber-based compostable (or aluminum) cups and containers for take-out, and reusable foodware for dining in. 17 While these initiatives have been valuable, they also underscore the need for scale and comprehensive infrastructure to truly effect transformative change related to reuse. Achieving meaningful progress requires more substantial support than can be provided through isolated pilot programs or local legislation. In addition, the regulatory landscape in the State of California is evolving, in particular with SB 54, the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which enables reusables in order to reduce the use of plastics. 18 Taking steps to implement the proposed reuse system will help our communities be SB 54-ready.

Furthermore, the proposed measure represents a significant departure from the current consumption paradigm; like other significant infrastructure and resource management systems, it requires federal-level support to realize its full potential. Our coalition recognized the opportunity that the CPRG program represents to provide the support needed to make reuse happen and quickly committed to working together and making this a measure a priority. It is the type of bold and innovative approach that addresses both the immediate imperative to reduce GHG emissions and single-use waste and the broader imperative to build more sustainable, resilient communities and models of consumption.

This measure is innovative and ambitious, and an ideal fit for the CPRG program. It will result in reuse on a groundbreaking scale, and will establish infrastructure and logistics to support a transformative system with significant potential to scale within California, while the model can be expanded and replicated in other jurisdictions. It achieves GHG emissions reductions that will continue to grow as the system expands, and it simultaneously helps address the increasingly concerning waste and pollution crises generated by single-use disposables. At the same time, it achieves considerable community benefits, leveraging extensive community and stakeholder engagement to create an equitable system built for its users that creates jobs in disadvantaged communities, enhances local economic resilience, and is convenient, user-friendly, and accessible.

Features, Tasks, and Milestones
The proposed reuse system integrates several features designed to ensure success and adoption of the measure.
● Stakeholder Engagement. Stakeholder engagement is a core feature of the system design, and the first phase of the project focuses primarily on engaging key stakeholders, partners, and community members to gather input to co-design a system that works for the communities. ● Leveraging Local Partnerships. Local partners and organizations with expertise in the communities will be important partners in designing and launching the reuse system. Organizations with expertise in outreach and engagement, deep community relationships, experience in workforce development, and unique community perspectives will be leveraged to provide invaluable input, advice, and assistance to system design and implementation, ensuring that the resulting system incorporates the best available expertise, local knowledge, and fulfills community needs. ● Community Participatory Design Process and Regular Community Input. From the first mapping and engagement stage to regular opportunities for input once the full system has been launched, community input in the design and operation of the system, solicited through various multilingual channels, will be critical to ensuring community buy-in, maximizing participation, and continually improving the system to make sure it works for the entire community. ● Economic and Environmental Sustainability. Core tenets of the proposed project are environmental and economic sustainability. The system will be designed to maximize the environmental benefits, 18 https://legiscan.com/CA/text/SB54/id/2600075
17 https://www.cupertino.org/our-city/departments/environment-sustainability/single-use-plastics-ordinance 5 Attachment 2

for example through optimized logistics, using electric vehicles for distribution, and ensuring dishwashing is as efficient as possible. Economic sustainability is the ultimate goal - we will be establishing a system that, once operational, will be self-sustaining, ensuring the reuse system will serve the communities in perpetuity.

The project has been designed to follow a process similar to that Perpetual has used in other cities.

Project phases, tasks, and related assumptions and risks described in detail below. See Figure 1 later in this document for the implementation timeline.

Phase 1: Mapping & Engagement
Systems that can both represent and work for the communities in which they operate should be designed with public input and an understanding of the key components of a community including local geography, tourism flows, climate and weather, key languages, community assets, and more. This process will either be led by a nonprofit organization or put out to bid to an organization with expertise in diverse community outreach as well as equity and inclusion consideration. It will be conducted in close coordination with and with contributions from the municipalities.

Thorough stakeholder engagement and community-centered design will ensure that the system is designed and built for the communities it will serve. Local perspectives, preferences, and considerations will be incorporated into each element of the system design, helping the resulting reuse program fully meet the needs of all community members. The thorough stakeholder engagement process will also help build buy-in, driving excitement and adoption once the system is launched.

The workshops and survey(s) will seek to bring together a diverse cross-section of the community to provide input and engage with users of disposable foodware, as well as restaurant and K-12 school nutrition directors and cafeteria operators, to understand what would be needed for a reusable foodware system to work in their ecosystem. This phase may also uncover opportunities for the program to serve other groups. For example, there is already interest from edible food recovery programs (e.g., Joint Venture Silicon Valley who operates the Santa Clara County Food Recovery Program) and meal delivery programs (e.g., Meals on Wheels) in switching to reusable products.

This phase of work is critical to identify local assets, such as underutilized dishwashing facilities and transport vehicles, drop-off locations and pick-up routes for current materials management, and more.

Leveraging existing assets to the extent possible will improve the cost-effectiveness and environmental sustainability of the measure and, as such, identifying those assets will be a key component of this phase.

Tasks

1. Conduct community “ecosystem assessment”

2. Conduct a series of participatory stakeholder workshops and surveys in each community

3. Engage Reuse Service Providers: Put out an open call for reuse service providers to engage in the process and conduct initial conversations regarding providers’ current technical capabilities

4. Map the current system landscape to identify existing assets and infrastructure

5. Circularity Assessment Protocol to set baseline circularity metrics

6. Develop five-year financial model
Milestones: Ecosystem Assessment results obtained, Circularity Assessment Protocol results obtained, stakeholder workshops and surveys completed.

Assumptions & Risks: The key assumption in this phase is that there will be stakeholder support and enthusiasm for developing a community-scale reuse program. From Perpetual’s experience designing reuse systems in four different cities, there is documented strong support from local communities for reuse options. In both Ann Arbor, MI, and Galveston, TX, for example, community workshops found that 96 percent of people were likely or very likely to use a reusable cup and container if the system were available in their community. In Hilo, HI, this number was 99 percent. 19 On a national scale, 84 percent of 19 https://www.perpetualuse.org
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registered US voters support increasing the use of reusable packaging and foodware and 80 percent support requiring companies to reduce their single-use plastic packaging and foodware. 20 In addition, based on the support for this project from coalition members and the reusable foodware pilots already planned for several Santa Clara County schools, we believe this risk is minimal.

Aside from the risk of potential lack of community support for a community-scale reusable foodware program, which we believe is negligible, there are timeline and budget risks associated with using a participatory design process. Public participation can be time-consuming and expensive. Additionally, if executed poorly, public participation can result in negative perceptions of the project or loss of faith in community leadership (e.g., local governments). A negative experience during the participatory process may lead participants to have negative perceptions of the proposed program itself and they may be less likely to participate. These risks can be mitigated by using best practices and leveraging Perpetual’s involvement and lessons learned from community-scale reuse program participatory design processes executed in communities such as Hilo, HI; Galveston, TX; and Ann Arbor, MI.

Phase 2: System Design
The system design phase will create a system that incorporates best practices in reuse programs, represents the values of the community, and is optimized for the features of the coalition. By incorporating public input and data-driven design, the system design phase ensures that the resulting program meets community needs, is equitable, and is optimized for economic and environmental effectiveness and efficiency. During this phase, the insights from local community engagement are synthesized into a System Design Plan, which is put up for a public comment period before finalization.

The data collected will be used to create a location-specific foodware flow model which will later be used to optimize asset placement and transportation routing for collection and redistribution. Careful considerations of all these elements at the design stage generates a sustainable reuse system from the very beginning.

The resulting System Design will include technical features (e.g., infrastructure needs, specifications for reusable items, collection locations, asset tracking, etc.), financial elements (e.g., deposit vs penalty vs other for consumers, fee per use, etc.), behavioral (e.g., ensuring design aligns with human behavior, specify non-financial return incentives, etc), and governance (e.g., contracting, coalition members’ oversight roles, mechanisms for continued community input, etc.) Tasks

1. Data collection on current usage volumes for single-use items

2. Volume Modeling: Create a location-specific foodware flows model to optimize asset placement and routing for collection and redistribution. See the relevant city map attachments for an example of draft maps for bin placement throughout the coalition members’ communities. These maps are illustrative and would be verified and refined during the design process.

3. LCA Scenario Analysis: Use the parametric LCA model created by Dr . Greg Keoleian to test different system design scenarios and provide data to inform design choices.

4. Draft System Design

5. Hold a public input period to refine draft System Design

6. Finalize System Design
Milestones: System design complete. See Perpetual’s draft from the Hilo, HI Design Process document, included as an attachment, for a sample System Design plan.

Assumptions & Risks: There are few risks in this stage, aside from the data collection, analysis, and design work taking longer and costing more than expected. However, Perpetual’s experience designing systems for other communities will mitigate those risks. Public input on the draft System Design has risks similar to those in the Phase 1 participatory process, but those risks can be mitigated in a similar fashion.

One risk that could impact the expected GHG emissions reductions is if system design choices selected are different than those that have been built into assumptions incorporated in the budget and emissions 20 Ipsos and Oceana
7 Attachment 2

reduction calculations. For example, the emissions calculation is based on lifecycle emissions savings of a reusable stainless steel container compared to disposable plastic and paper containers. If the system design and stakeholder input processes result in the selection of a different material for the reusable containers, such as glass, that will affect the emissions reductions of the system.

Phase 3: System Set Up & Pre-Launch
The system set up and pre-launch phase begins implementing the design determined during the engagement and mapping process. The set up phase includes procurement of necessary assets, infrastructure, permits; identification of and operational collaboration with reuse providers; development of the pricing model and enrollment process for participating businesses; and creation of the mechanism by which the community will have an ongoing voice in system operations. As the system is set up, the focus is on establishing a system that is environmentally sustainable, equitable, and that will become economically self-sustaining.

A key element of this phase is selecting a reuse service provider or multiple providers to individually or collectively operate the washing, reusable asset collection and distribution logistics, and other elements according to specifications outlined in the System Design. There are currently 38 reuse service providers operating reusable foodware programs in the U.S.21, and we expect 6-8 of them to be competitive for this project given its scale. Priority will be given to organizations already operating in the area, if possible. The selection process will also consider the potential that the Reuse Service Provider will be a collaboration or joint venture between an existing operator and a local entrepreneur or organization.

Perpetual has experience issuing an RFP for service providers from its work in Galveston, TX 22, that will be valuable to this step. Similar to how it was issued for Galveston, the RFP will likely be split into individual system components - Technology, Return Infrastructure, Reverse & Forward Logistics, Washing, and Foodware. Though it is plausible for one service provider to apply and be selected for multiple components of the system, each component will be contracted to the entity that is best fit for operational success while meeting environmental, and community needs.

Tasks:

1. Establish governance

2. Select and secure facility for washing and packaging

3. Competitive procurement process to select reuse service provider(s)

4. Procure system assets and equipment

5. Acquire required permits for washing facility and outdoor collection bins

6. Onboard participating businesses and K-12 schools for initial system launch

7. Install and test equipment with pilot businesses

8. Create reuse brand identity and communications strategy

9. Multilingual outreach and education campaigns

10. Continued stakeholder engagement
Milestones: System operator chosen; reuse assets for initial launch procured and received; initial businesses and institutions confirmed.

Assumptions & Risks: There are risks of system set up and pre-launch taking longer than anticipated, for example if the necessary permitting were delayed, which would push back the launch of the system and delay anticipated emissions reductions. However, the timeline has been structured to account for all set-up steps and necessary processes and timing, and we believe it is reasonable. Besides timing, a key assumption is that there will be a reuse service provider(s) who will respond to the RFP and will be able to effectively service the system. Perpetual can confirm from its experience and the Galveston RFP process that there are currently existing service providers who could provide every necessary component of a reuse system, and that service providers would be eager to respond to the opportunity 22 Perpetual, 2024
21 Reuse Landscape, 2024
8 Attachment 2

to service a system that has received grant funding to overcome the initial barriers; as a result, the risk of this assumption being unreasonable is essentially zero.

Phase 4: Initial (Pilot) Launch
This phase will launch a pilot version of the reuse system with a subset of businesses and schools.

Learnings from the initial launch will provide useful feedback on gaps and improvements needed before the full launch.

Tasks:

1. Mobilize volunteers to support system success during first two weeks of system operation

2. Hands-on support for system success

3. Promote launch
Milestones: Initial system launched (April 2026)
Assumptions & Risks: The risk of the pilot launch is that it will uncover significant unanticipated issues that will affect the full system launch. While this could delay the full launch and require resources and attention to address, identifying any potential issues during this initial launch will help test the system and ensure the success of the full launch. This risk is not expected to affect overall GHG emissions reductions.

Phase 5: Full System Launch
The full launch of the system is expected in January of 2027, targeting initial adoption among 5 percent of restaurants in Sunnyvale and the other Santa Clara County cities and 20 percent of restaurants in San Benito County.

Tasks:

1. Monitor system performance and address gaps

2. Continue enrolling businesses

3. Install equipment with businesses and schools for full system Milestones: Full system launched (January 2027)
Assumptions & Risks: The assumption built into the budget and emissions calculations has been the initial adoption rate of reusables among restaurants and schools in the communities. If adoption is lower than anticipated, that will lower the resulting emissions reductions. Based on Perpetual’s experience, validation from existing pilots, and reports from reuse service providers, we believe that the assumed initial adoption rates are reasonable and achievable and that the risk of not meeting them is low.

Phase 6: Expansion & Improvements
Once launched, continual monitoring and improvements will be important to ensuring the reuse system is operating as intended and meeting the needs of users and participating restaurants and schools.

Ongoing marketing and outreach efforts to enroll additional participants will ensure gradual expansion of participation.

Tasks:

1. Monitor and improve system performance

2. Enroll additional businesses and schools

3. Ongoing engagement and outreach

4. User experience research

5. Regularly report operational and impact metrics
Milestones: Report on first year of operations (2028), including operational and impact metrics, and regular subsequent reporting
Assumptions & Risks: Once the system is operational and grant funding is no longer subsidizing operating expenses, there is an inherent risk that the system will not be viable without external funding support and will not be able to continue operating after the program period. If the system ceases to operate after the program period, the anticipated emissions reductions of the measure beyond 2030 9 Attachment 2

would not be realized to the extent expected. Though the infrastructure and assets could be repurposed, without the broader system, the impact would be less transformative.

We believe this is an unlikely outcome. The barrier to establishing effective reuse systems at scale is the upfront investment required. The components of the system and pilot programs have proven the potential for success at scale and shown that it is possible to create a system that is profitable for the reuse service provider(s), free or low cost to users, and comparable in cost to using disposable products for participating businesses. Furthermore, immersive reuse systems are already happening in other places, and by the time of this program’s launch will be in additional locations through Perpetual’s current work. In Denmark, the City of Aarhus and TOMRA have partnered to implement a reuse system for takeaway packaging.23 In Monaco, a reusable glass container system for takeout is available around the city.24 In addition, Zero Waste Europe (ZWE) is working on to-go reuse initiatives in more than a half dozen cities. Through Perpetual’s work, city-scale reuse systems for restaurant takeout are being set up in Galveston, Texas25, and Hilo, Hawaiʻi.26 The risks of launching reuse have been addressed by these other systems and countless pilots, and there are no challenges in implementing this measure that have not been previously overcome.

The commitment of the coalition members to this measure, the expertise of Perpetual’s ongoing work and ability to leverage their resources from other cities, in conjunction with the experience of local organizations, and the transformative potential of reuse once it overcomes the initial capital requirements mitigate this risk and smooth the path for an effective and innovative system. b. Demonstration of Funding Need
Reusable foodware and packaging pilots and efforts to date have successfully validated the essential elements of reuse systems for economic and environmental viability. There are examples of refillable beverage container systems operating at scale, hygiene and safety measures have been successful, and reuse services are being further codified in the next supplement to the 2022 FDA Food Code. 27 However, a key insight from these efforts is the importance of scale. Broad adoption of reuse requires that receiving and returning reusable items be convenient for users and that replacing disposable items with reusables not impose an economic or operational burden on businesses. To get to this point, community-scale reuse systems require support to get started and achieve scale and operating efficiencies, and they need a timeline that allows for the shift in behavioral norms needed to enable the mainstream success of reuse systems.

Reusable foodware systems require specific infrastructure, such as collection bins, transport vehicles and dishwashing machines. While some reuse service startups are using debt or investment capital to get started, receiving grant support for this infrastructure would allow the reuse service provider to charge a lower per-use fee sooner, lowering the cost burden on participating restaurants and foodservice operators. This enables the system to be economically self-sustaining more quickly and with lower risk.

There are no funding sources available on the scale needed to implement reuse as a community-scale climate solution. Some other entities have been successful at leveraging other grant opportunities, such as the EPA Solid Waste Infrastructure for Recycling (SWIFR) grant program, to apply to reuse, and the Pollution Prevention grants can address source reduction, but these opportunities are much smaller than the scale needed for true reuse impact, and there are not otherwise existing dedicated opportunities.

Given this lack of dedicated funding opportunities, the City of Sunnyvale has not received funding to implement the type of community-scale reuse system proposed. The City of Sunnyvale and other coalition members have recognized that replacing single-use foodware with reusables represents an opportunity to reduce both GHG emissions and waste, and have explored options that they can take on to encourage the use of reusables in restaurants. In the City of Sunnyvale, we have been exploring a Disposable Foodware Ordinance that would mandate restaurants use reusable foodware for dine-in 27 FDA, 2023, FDA 2022 Food Code
26 Perpetual - Hilo, 2024
25 Perpetual - Galveston, 2024
24 Monaco Life, How to use MaConsigne’s Reusable Take-Away Containers 2022 23 TOMRA and Aarhus City enter collaboration to create innovative reuse system, 2023 10 Attachment 2

services. After conducting a survey to assess potential impacts of such an ordinance on local businesses and consumers, the City tested a reusable foodware pilot where 14 participating restaurants used reusables for dine-in customers.28 Similarly, the coalition members have also recognized the importance of and taken some steps toward encouraging the use of reusables in foodware, including the local ordinances, partnerships, and pilots identified in Section 1A. While these efforts have been positive steps, they provide neither the funding nor the transformative support on the scale needed to implement an effective reuse system that achieves its full potential environmental and economic benefits. CPRG support is integral to do something transformative.

Just as government funds have been foundational to establishing today’s waste management and recycling systems, government funds are essential to establishing the reuse systems now increasingly recognized as far more effective and beneficial than their predecessor systems. A distinction with the proposed reuse system is that, while government funding has continued to support the ongoing operations of waste management and recycling systems past the initial establishment, the proposed reuse system only requires funding to get established; it is designed to be self-sustaining and fully operated by a private reuse service provider(s) after the initial period of start-up support.

CPRG funds would provide this support to achieve the necessary scale and ease of use, unlocking the environmental and economic benefits of reuse. This funding would provide the influx of support that would allow the system to deploy, allow the reuse service provider to charge a lower per-use fee sooner, lower the cost burden on participating restaurants and foodservice operators, and enable the system to be economically self-sustaining more quickly and with lower risk. CPRG funds in particular are an excellent fit for launching reuse systems, as these systems require initial financial support to deploy, yet they deliver cost-effective GHG and pollution reductions along with a range of other benefits to local communities and society as a whole.

Economic sustainability is a core premise of this project: the goal is to establish a reusable foodware system that generates enough revenue to be economically self-sustaining over time. The objective is for a Reuse Service Provider to be successfully established in the area with a revenue model that supports the ongoing operations of the reusable foodware system over time without the need for other funding (such as philanthropic or government). CPRG funding would overcome the initial barriers that, without such support, would limit convenience for consumers, affordability for businesses, or prevalence required to shift social norms. In this way, this project ensures that, once established, this service continues to provide reusable foodware, and the resulting benefits, to the communities it serves indefinitely.

Perpetual has received funding to support these types of community-scale reuse projects in other locations. From this funding, it has developed resources, tools, and data needed to establish reuse systems. To leverage these resources for our coalition, CPRG funds are needed to bring Perpetual’s expertise from its ongoing work in other cities to design and implement an effective reuse solution for our communities. A potential future source of funding could come from SB 54 enabling reusables to reduce the use of plastics and shifting the plastic pollution burden from consumers to producers. The Producer Responsibility Organization will be funding certain activities by raising $5 billion from industry members over 10 years. This could be an opportunity for future support, which could fund expansion of the reuse system, while CPRG funding would provide the kind of transformative support that is needed now to set up viable and self-sustaining reuse programs. c. Transformative Impact
Reuse is a transformative climate solution. Life-cycle assessments (LCAs), academic studies, startup programs, pilots, and ongoing reuse operations have repeatedly shown that, even when including impacts associated with washing and logistics, reusables can result in 2 to 10 times less lifecycle GHG emissions than disposable alternatives.29 Beyond the immediate GHG emissions reductions that will come from implementing a community-scale system, reuse is an innovative and replicable measure that 29 Hitt, 2023; Gordon, 2023; Lelong, 2023; Reloop & Zero Waste Europe, 2020 28 https://www.sunnyvale.ca.gov/Home/Components/News/News/230/111 11 Attachment 2

can be scaled up within our communities and transferred to other jurisdictions, driving behavior and consumption paradigm shifts that will lead to significant additional emissions reductions as it scales.

The transformative power of the community-scale reuse system proposed in this application comes from the infrastructure it develops. Once established, this infrastructure enables other settings, users, and applications to offer reusable options and achieve the environmental benefits that come from reuse.

Infrastructure built for the open system designed around restaurant takeout and delivery can also be used by institutions, cafeterias, event spaces, and other closed venues. It can accommodate other packaging formats, serve additional surrounding areas, and make reuse the norm in our communities. It can expand to adjacent programs, including meal recovery efforts.

By the time this project is moving into implementation, there will be several examples of city-scale reuse projects functioning at scale. Through Perpetual’s work, both Galveston, Texas and Hilo, Hawai’i will have operational systems. The impact results, learnings, and examples of proven success from these and our coalition’s reuse system will streamline every future reuse project. They will make system replication and =adoption easier, accelerating reuse and its transformative climate benefits across the country.

Impact of GHG Reduction Measures
Magnitude and Cost Effectiveness of GHG Reductions
The estimated GHG reductions are based only on the totals for the coalition communities. We expect additional communities to implement similar programs after success is demonstrated by this coalition project, in which case the GHG reductions resulting from EPA funding would be many times greater .

Cumulative GHG Reductions (2025-2030) 7,916 Mt CO2e
Cumulative GHG Reductions (2025-2050) 86,304 Mt CO2e
Cost Effectiveness of GHG Reductions (2025-2030)* $6,107 / Mt CO2e *Cost effectiveness of GHG reductions = (Requested CPRG funding) / (Sum of Quantified GHG reductions from CPRG funding from 2025-2030)
The measure will result in a permanent reduction in cumulative GHG emissions, and the transformative and scalable nature of the measure means that emissions reductions will increase as the system expands. The primary GHG reductions come from the avoided production of single-use items. A key factor that affects the magnitude of these benefits is the number of (re)uses in the lifecycle of a reusable container, and a key requirement to achieve these benefits is scale. Since CPRG funding will be establishing a system that has been designed to operate at scale, and reusable containers will directly replace single-use items, the emissions reductions are permanent and will increase as the system grows.

CPRG funding would establish a system that, without such an influx of support and given the lack of other dedicated opportunities at a similar scale, would not otherwise be created. Once the infrastructure is established, the reuse system will scale after the program period: more equipment will be purchased, reusable assets will be added, and more restaurants, schools, and communities will be served. Because CPRG funding will be directly and solely responsible for the creation of the reuse system, designed to be self-sustaining to operate in perpetuity, all lifetime emissions reductions that result from the system, including as it scales, can be attributed to the CPRG funding used to set it up.

See the attached Technical Appendix for annual and cumulative emissions reductions from 2025 through 2050 and the methodology and assumptions used.

Environmental Results – Outputs, Outcomes, & Performance Measures A & B. Expected Outputs, Outcomes, and Performance Measures The expected outputs and outcomes of the reuse system are listed below. For each output and outcome, suggested performance measures to track progress are listed. The performance measures identified are 12 Attachment 2

the minimum measures expected to be tracked. Others may be identified during the system design process.

To track progress toward achieving the expected outputs and outcomes associated with the reuse system, required tracking and reporting by the reuse service provider(s) will be a key source of updates.

As part of the RFP and contract established with the reuse service provider(s) selected, metrics and reporting requirements will be outlined and agreed upon. This reporting will go to the governing entity of the reuse system, either the coalition or a separate governing body if determined / established during the system design process.

Perpetual and the coalition members, as subrecipients, will be required to report on progress and expenditures of funds to the City of Sunnyvale. Purchases of equipment and supplies, categorized as participant support costs, will be tracked closely by the City of Sunnyvale as the manager of the grant.

Reporting from the reuse service provider(s) and subrecipients will be included in regular reports provided by the City of Sunnyvale to the EPA. The required semi-annual and final reports will summarize technical progress, accomplishments, and milestones achieved. Outputs and outcomes will be described, planned activities for the next six months identified, and a summary of expenditures to date provided.

Each report will include an update on community engagement, with the substance of the updates and results provided largely by Perpetual and other local organizations involved as relevant. Progress on job quality will also be described. Input from local organizations and partnerships with local job training groups will help ensure high quality employment opportunities, and tangible steps toward defining employment practices required of the reuse service provider(s) will be identified.

To quantify actual GHG emissions reductions, data from the reuse service provider(s) will provide information that has as yet been limited or nonexistent. Key areas of impact have been identified by existing research and include the transportation and washing processes, with return rate having a significant impact on overall emissions reduction potential of reuse. As the reuse system becomes operational, actual data from the reuse service provider(s) on the washing stage (e.g., hot water use, electricity) and transportation (e.g., miles driven) will improve emissions estimates and impact calculations.

Output /
Outcome Outputs & Outcomes Performance Measures Approach & Plan Output Establishment of
reusable foodware
infrastructure and
services
Equipment, infrastructure, and associated
service will be set up and operational on
a pilot scale by April 2026 and full scale
by January 2027.

Coalition will meet regularly with nonprofit partner(s) leading system design and implementation to ensure
progress towards system set-up. Participant support
costs will go largely to establishing the system
infrastructure, and close tracking and reporting of
expenditure of funds will be required.

Output Creation of regionally
cohesive system that
functions across city
and county lines
Participation in reuse system across
city/county lines is seamless (e.g.,
reusable container received in City of
Sunnyvale can be returned in city of
Cupertino)
Incorporate regional stakeholder input in system
design to ensure interoperability. Make decisions on
branding, marketing, and system design with regional
cohesion in mind.

Output Strong adoption among
foodservice
establishments
5 percent of restaurants /
foodware-using businesses across Santa
Clara County coalition communities and
20 percent in San Benito County will
participate in the system in the first year .
25 total public schools in coalition
communities will participate in the
system in the first year .

Outreach and onboarding to target restaurants and
enroll schools. Reuse service provider(s) required to
report on number of participating businesses and
schools. Coalition to receive regular updates in
meetings.
13 Attachment 2

Output Acceptance and usage
by community users
90 percent or greater return rate of
reusable items from consumers
Reuse service provider(s) required to report on return
rate and average amount of time before items are
returned.

Output Transparent and
accountable reporting
Complete semi-annual progress reports
are submitted on time to the EPA
Comprehensive final report is submitted
on time to the EPA
Coalition members will meet regularly (anticipate
monthly at least in Year 1) and will include reporting
as an agenda topic. Expect that the nonprofit(s)
involved in system design will assist with assembling
report content. City of Sunnyvale will be responsible
for submitting the reports to the EPA.

Outcome GHG emissions
reductions
~7,900 Mt CO2e by
2030
Number of reusable cup & container uses Reuse service provider(s) required to report number of reusable product uses, which will be used to
estimate emissions reductions. Further, the service
provider(s) will be required to provide key metrics to
refine GHG emissions estimates, such as monthly
electricity bill, vehicle fuel or electricity consumption, water use, etc.

Outcome Reductions in waste
generation:

Reduction in foodware
waste generated by
participating businesses
& schools
(>2,500 tons by 2030)
Reduction in single-use
plastic foodware items
(>1,500 tons by 2030)
Number of reusable cup & container uses Reuse service provider(s) required to provide usage data. Use the number of reusable cup/container uses
to estimate the number and mass of avoided
single-use items.

Outcome Financial savings to city
waste management
departments from
reduction in waste
generation and avoided
collection, processing
and disposal costs
Number of reusable cup & container uses Reuse service provider(s) required to provide usage data. Use number of uses to determine number and
mass of avoided single-use items. Use city waste
management costs to calculate savings.

Outcome Jobs created, including
jobs for people living in
LIDAC communities
(70-80 FTEs created by
2030, with a majority in
LIDAC communities)
Number of FTEs
Number of FTEs living in LIDAC
communities
Reuse service provider(s) required to provide job data
C. Authorities, Implementation Timeline, and Milestones The City of Sunnyvale, as well as each coalition member, have authority to implement the proposed system in their communities.

The implementation of the proposed measure will be a collaborative effort between the coalition, key project partners, and the reuse service provider(s) once selected. The City of Sunnyvale, as the coalition lead, and other coalition members will work closely with Perpetual and other organizations with relevant expertise to implement each phase of the project and ensure a successful reuse system is established. 14 Attachment 2

Implementation will involve close collaboration between city departments, restaurant representatives, relevant community organizations, school representatives, and other stakeholders.

The MOA will clearly outline roles and responsibilities of each party. The general structure will be set up with the City of Sunnyvale administering the grant funds and passing through funding to other coalition members and nonprofit partner organizations. Coalition members will contribute support, assist with engagement and outreach, leverage city communication channels and connections, and participate in meetings. Perpetual and / or other nonprofit organizations will fulfill the responsibilities of conducting outreach and designing and implementing the system. Perpetual will provide technical advice to inform system design and input based on reuse systems set up in other cities. Once selected, the reuse service provider(s) will assume responsibility for operating the system and taking necessary set up steps such as obtaining permits.

Through regular coalition meetings and close collaboration with partner organizations, the reuse system will be implemented according to the timeline outlined in Figure 1, targeting a full launch of the system in January of 2027. This timeline assumes a grant award date of October, 2024. Key milestones of each stage are shown in green.

Figure 1: Implementation Timeline
Phase Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 2027 2028 2029 Grant Reporting Semi-Annual
Report
2nd
Semi-Annual
Report
Semi-Annual
Report
Semi-Annual
Report
Semi-Annual
Reports
Semi-Annual
Reports
Semi-Annual &
Final Report
Coalition Meetings
Mapping & Engagement Grant
Award
Mapping &
Engagement
Complete
Community “Ecosystem
Assessment”
Map the Current Landscape
Circularity Assessment Protocol
Stakeholder Workshops & Surveys
Engage Reuse Service Providers
Map the Current Landscape
Circularity Assessment Protocol
Develop 5-year financial model
System Design System Design
Complete
Data Collection on Disposable Use
Volume Modeling
LCA Scenario Analysis
Public Input Input on Draft
System Design Plan Draft System
Design
Final System
Design
System Set Up & Pre-Launch
Establish Governance Governance
Established
Select Service Provider(s) RFP Issued Provider(s)
Selected
15 Attachment 2

Select and Secure Facilities Facilities
Secured
Procure Assets & Equipment Assets
Procured
Acquire Permits Permits
Acquired
Enroll & Onboard Businesses &
Schools
Initial
Participants
Confirmed
Install & Test Equipment
Create Reuse Brand Identity Brand Identity
Created
Outreach & Education Campaigns
Initial (Pilot) Launch
Initial
Launch
(April)
Mobilize Volunteers to Support
First Two Weeks
Hands-On Support for Pilot Launch
Promote Launch
Full System Launch Full System
Launch (Jan)
Monitor Performance & Address
Gaps
Enroll Additional Businesses &
Schools
Install & Test Equipment
Expansion & Improvements
Enroll Additional Businesses &
Schools
Monitoring & Improvements
Ongoing Engagement
User Experience Research
Report on Operations Report on
1st Year
Report on
Operations
Low-Income and Disadvantaged Communities
a. Community Benefits
The proposed project will result in both direct and indirect benefits to low-income and disadvantaged communities in the areas served. Maximizing the benefits to these communities and incorporating their input will be key considerations throughout the community engagement and system design stages, as well as an ongoing focus once the system is operating.

Based on the CEJST tool, the project area includes a total of 79 LIDAC census tracts in Santa Clara and San Benito Counties, with three LIDAC census tracts in San Benito County located near the city of Hollister and the remaining LIDAC census tracts located in the coalition cities within Santa Clara County. The San Benito County LIDAC tracts include a population of 15,787, or 23 percent of the county population. The Santa Clara County tracts include a population of 385,871, or 30 percent of the population of the communities in this coalition.

There are an additional 15 census tracts in Santa Clara and San Benito Counties that are considered high pollution burdened based on the CalEnviroScreen tool, 3 in San Benito County and 12 located in the 16 Attachment 2

Cities of Sunnyvale, Cupertino, San Jose, and Mountain View. The figures below show the LIDAC and high pollution tracts identified in the PCAP for the area.

Source: San Benito and Santa Clara Counties PCAP
Source: San Benito and Santa Clara Counties PCAP
The vast majority of San Benito County corresponds to three high pollution census tracts. There is a high concentration of LIDACs and high pollution census tracts in the northeastern portion of Santa Clara County, which corresponds to where a larger portion of the County population resides. This concentration will be taken into account in the system design phase and will contribute to the location selection for washing facilities, which will directly benefit LIDAC communities by creating high-quality green jobs and economic opportunities.

The reuse system described in this application requests funding to establish two washing facilities, one in San Benito County and one in Santa Clara County, and all of the associated logistics infrastructure to support community-wide use of reusables. This infrastructure will create numerous high-quality jobs in sorting, washing, packing, distribution, collection and other logistics, as well as supervisory roles. The system is expected to create an estimated 56 jobs in the first year of operation and 79 by the end of the grant performance period. While exact site location will be determined in close coordination with the 17 Attachment 2

communities and other stakeholders during the system design process, the plan is to locate the washing facilities in low-income and disadvantaged communities to ensure that the job creation benefits are directed to these communities as much as possible. In San Benito County, a wash hub near Hollister would serve the geographic area with the most demand and would provide job opportunities for the LIDAC communities in that area. In Santa Clara County, where the washing facility would serve the Cities of Sunnyvale, Cupertino, San Jose, and Mountain View, the intention is to locate the wash hub in the eastern side of San Jose, where several LIDAC tracts are located. Though this is not the geographic center of the communities in the county, proximity to the largest population center of San Jose and the LIDAC communities that could benefit from the job opportunities it creates would make this location favorable.

Job opportunities will continue to increase as the system scales, and an emphasis will be placed on maximizing opportunities for LIDAC communities and for workers from disadvantaged populations as much as possible. During the stakeholder engagement phase, we will coordinate with local job training, workforce development, and similar organizations that serve these communities and have relevant expertise, and the system design will incorporate their feedback and suggestions.

Single-use plastic waste and pollution disproportionately burden lower income and disadvantaged communities.30 With solid waste facilities usually located near these communities, they are most exposed to the resulting air, water, and soil pollution. However, alternatives to single-use plastic tend to be more expensive and some reuse programs have requirements that make them inaccessible for lower income communities. Lower cost restaurants and foodservice options are more likely to serve food and drinks in disposable foodware, increasing the exposure of vulnerable communities to chemicals of concern while also increasing the amount of trash that they are responsible for disposing of. Establishing a reusable foodware system that equitably serves the whole community provides a much needed alternative where none exists today. This system will give people a cost-free option to avoid the use of single use foodware and all of its associated challenges. Along with increased access to reuse services, increased awareness of reuse options and enhanced community engagement are additional benefits.

Reduced use of single-use items, of which the majority are not widely recyclable, reduces the need for communities to find new capacity to manage waste such as landfills and incineration, which are often located near disadvantaged communities. Research has shown that in many cities disadvantaged neighborhoods often have less access to waste management services, leading to higher litter rates. This program can reduce this burden.31
The small business community is a subset of the populations covered that will benefit from the proposed measure. The reuse system will result in decreased reliance on the global disposables supply chain, leading to increased stability of foodware costs, which is particularly important to small business owners in a low-margin industry.

Potential negative impacts to low-income and disadvantaged communities could arise around the accessibility of reusable options, but these impacts will be mitigated by inclusive program design. For example, some reuse pilots have been designed using a deposit system, where a user pays an upfront deposit to borrow a reusable container, with this deposit returned once the container is returned.

However, this approach, which requires a credit card or bank account, access to a smartphone, or a financial deposit upfront, can limit inclusion and accessibility of the system particularly for low-income and disadvantaged communities. The reuse program established through this grant will be intentionally designed to be equitable and accessible and will include options to use the system without a smartphone, credit card, or bank account. For instance, it could be designed to accommodate the use of benefits cards and/or transportation cards for engaging in the system.

Assessing and quantifying the benefits and avoided disbenefits to low-income and disadvantaged communities will be included in the performance tracking and reporting of the system. Specific processes will be determined in conjunction with the communities and with reuse service providers as part of the community engagement and system design processes, and considerations have been integrated into the engagement approach described in the next section. 31 EPA, Equity in Solid Waste Management, 2023
30 UNEP , NEGLECTED: Environmental Justice Impacts of Marine Litter and Plastic Pollution, 2021 18 Attachment 2

b. Community Engagement
Community engagement is a core element of program design and implementation. Incorporating community perspectives in the project design includes all community stakeholders, including low-income and disadvantaged communities, and intentional efforts are planned to include these communities in the development and implementation. A local organization will be selected to work as a partner and lead in the engagement phase of the project, leveraging local expertise and connections to maximize participation and facilitate outreach. Coalition agencies will also be closely involved in the engagement phase and will promote engagement opportunities for businesses and residents through their outreach channels.

The first phase of the project will involve identifying and reaching out to relevant local stakeholder groups and leveraging local organizations to ensure all stakeholders have been identified and contacted.

A series of community participatory design workshops will be used as a key mechanism to engage with stakeholders. In order to engage the greatest number and diversity of people in the design workshops, local organizations will assist with the outreach, including using existing channels and going to existing community forums and meetings to introduce this work and let people know about opportunities to be involved and to provide input. Design workshops will be advertised through various print and digital outreach avenues in languages to be confirmed by coalition members, expected to be English, Spanish, Vietnamese, Russian, and Chinese (including Mandarin and Cantonese).

To facilitate community member attendance, days, times, and duration of meetings will be chosen that are convenient for participants with different types of jobs or other responsibilities. To ensure that workshop attendance is inclusive and representative, each workshop will provide reasonable incentives and accommodations, such as making childcare and food available and reimbursing travel and other expenses for those who need it. The workshops themselves will provide a hands-on experience of the reuse system to give people a chance to experience the elements of a reuse system so that they can provide meaningful feedback on design choices. Time in the workshops will be balanced between providing enough context for participants and deep listening. There will be a range of ways for participants to provide input - spoken, written, open form, survey.

Site selection will be a highly collaborative and community-centered process. Given the intention to locate the washing facilities in LIDAC tracts to maximize the job opportunities for these communities, integrating their input into site selection will be essential. This collaborative selection will be part of the system design phase.

Beyond the workshops, there will be opportunities for engagement and input throughout the process, including after the initial pilot launch and following the full system launch. Community engagement will be conducted regularly to understand what is working and what needs to be improved. Post-launch engagement may take the form of written and online surveys, listening sessions, and focus groups. This process will ensure that the community feels a sense of ownership in the program and that it continues serving the community’s needs. Feedback from this engagement may be used to expand the program to other packaging formats. Further, the behavior analysis planned pre- and post-launch can help inform this engagement and where focus should be placed.

Job Quality
Job creation is one of the direct outcomes of the proposed measure, and ensuring job quality, a diverse workforce, and high road labor practices will be integrated into the system design. Good Jobs Principles will be integrated into the design of the system’s workforce management, from the recruitment and hiring stage to career advancement. To ensure jobs created are high-quality and promote a diverse, skilled workforce, the below strategies and commitments will be followed.

Recruitment and Hiring: Applicants will be actively recruited from diverse pools, especially from underserved communities. Local jobs organizations will be contacted to share job opportunities among their networks. The San Jose Conservation Corps is one organization that is very interested in this issue and is representative of underserved communities. Applicants will be evaluated and treated equally. To 19 Attachment 2

integrate the commitment to hiring from local communities, particularly LIDAC tracts, the RFP to select a reuse service provider(s) will require a local workforce component with training and hiring incentives for local residents.

Job Quality: Workers will have a safe, healthy, and accessible workplace, built on input from workers and their representatives. Workers will have job security without arbitrary or discriminatory discipline or dismissal. They will have adequate hours and predictable schedules. The use of electronic monitoring, data, and algorithms will be transparent, equitable, and carefully deployed with input from workers.

Workers will be free from harassment, discrimination, and retaliation at work. All workers will have equal opportunity and will be respected, empowered, and treated fairly. Diversity, Equity, Inclusion, and Accessibility (DEIA) will be a core value and practiced norm in the workplace. Individuals from underserved communities will not face systemic barriers in the workplace.

Pay and Benefits: Workers will be paid a stable and predictable living wage, and pay will be fair, transparent, and equitable. In California, the state minimum wage is $16/hour . The coalition cities have higher minimum wages ($17.55 in San Jose; $18.75 in Mountain View; $18.55 in Sunnyvale; $17.75 in Cupertino), and the highest rate will be used as the base hourly rate across the entire coalition area.

Workers' wages will increase with increased skills and experience. Workers will be provided benefits that promote economic security and mobility and include paid leave and workforce flexibility.

Skills Development and Advancement: Workers will have equitable opportunities and tools to progress to future good jobs within their organizations or outside them. Workers will have transparent promotion or advancement opportunities.

Programmatic Capability and Past Performance
a. & b. Past Performance & Reporting Requirements
The City of Sunnyvale has a record of successfully completing assistance agreements. State CalRecycle grants the City has performed within the within the last three years, or is currently performing, include:

Project 1: AD and Composting
● Assistance agreement number: Grant Number: ORG5-21-0006 ● Federal or non-federal funding agency and assistance listing number: CalRecycle, assistance listing number not applicable
● Contact from organization that funded the assistance agreement: Molly Park; [email protected]
● Description: Grant funds will be used to replace food scraps pre-processing equipment and recovered organics diversion at the permitted Sunnyvale Materials Recovery and Transfer Station by purchasing integrated food scraps pre-processing system, and one shredder for recovering organic materials from the municipal solid waste processing line. ● Status: Staff expects to complete the final installation of the Shredder and SSO Equipment in May 2024. Equipment has been built, shipped and received either to SMaRT or to a storage location.

Some installation of the SSO Equipment has been completed. Building permit submissions are in progress for the final installation.
● Reporting: Starting in May 2022, the City has been submitting periodic grant reports to CalRecycle every 3 months. Progress as well as delays in projects are promptly reported to CalRecycle.

Project 2: SB 1383 Local Assistance Grant Program (OWR1: 2021-22) ● Assistance agreement number: Grant Number: OWR1-21-0497 ● Federal or non-federal funding agency and assistance listing number: CalRecycle, Grant ID 25382 ● Contact from organization that funded the assistance agreement: Jayme Tesser; [email protected]
20 Attachment 2

● Description & Status: Grant funds were used to partially fund City’s portion of the edible food recovery program facilitated by Santa Clara County. Funds will also pay for a term-limited City staff position that will implement, monitor, enforce, and educate around SB 1383. ● Reporting: City has submitted progress reports on time for the duration of this grant.

Project 3: SB 1383 Local Assistance Grant Program (OWR4: 2023-24) ● Assistance agreement number: Grant Number: OWR4-22-0375 ● Federal or non-federal funding agency and assistance listing number: CalRecycle, Grant ID 27876 ● Contact from organization that funded the assistance agreement: Jayme Tesser; [email protected]
● Description & Status: City of Sunnyvale will use these funds for procurement of mulch and recycled organic waste products, their portion in the edible food recovery program administered by Santa Clara County, two years of SB 1383 data management and outreach. ● Reporting: The grant was awarded in Feb. 2024. Once the City obtains and begins using the funds, they plan to meet all progress report deadlines on time.

Project 4: Coronavirus Relief Fund Cares Act and State and Local Fiscal Recovery Funds (SLFRF) ● Assistance agreement number (if applicable):
● Federal or non-federal funding agency and assistance listing number: 21.019 (CRF Cares Act) and

21.027 (SLFRF funds)
● Contact from organization that funded the assistance agreement: No direct contact; funds came from CA state and Dept. of Treasury, respectively
● Description & Status: The CARES Act CRF funds were used for payroll for public health and safety employees, small business assistance, housing support, economic support, food programs, personal protective equipment, public health expenses, budgeted personnel and services diverted to a substantially different use and workers compensation. The ARPA SLFRF funds were used for Public Safety Services, including: police field and fire protection services for City of Sunnyvale residents; responding to emergency, non-emergency fire events, and medical emergency services; enforcing state and local laws; and investigating criminal activity. ● Reporting: Reports were submitted for 5 cycles to State of CA Dept of Finance, last report was submitted June 2021
Project 5: Silicon Valley Clean Energy Community Resiliency Grant ● Assistance agreement number: N/A
● Federal or non-federal funding agency and assistance listing number: Silicon Valley Clean Energy (SVCE)
● Contact from organization that funded the assistance agreement: Silicon Valley Clean Energy, 333 W El Camino Real #330, Sunnyvale, CA 94087, (844) 474-7823 ● Description: The City of Sunnyvale is currently finalizing the construction on the new City Hall building as part of the Civic Center Campus Modernization project, with the building designed to be LEED Platinum, zero net energy, and have a solar plus battery energy storage system (BESS) designed to keep the building running in case of power outages. In order to supplement the costs of this building, Sunnyvale applied for funding through SVCE’s Community Resiliency grant funding program. ● Status: Sunnyvale was awarded $1 million. The funding was utilized to offset the costs of the solar and BESS for the building. An additional $327,000 was awarded to Sunnyvale through the same SVCE grant program to purchase and install four EVArc units from Beam. The EVArc units are stand alone, solar arrays designed to power EV charging stations and can be used as emergency power supply when needed. Similarly, Sunnyvale worked with SVCE to meet all the timelines, communication needs and complete the project. Both projects have been fully reimbursed by SVCE. ● Reporting: Sunnyvale reported updates to SVCE as requested, on a quarterly basis. Any delays in the project were communicated in a timely manner, but ultimately the project was completed within the 21 Attachment 2

grant timeline. Sunnyvale partnered with SVCE to do press and publicity on the project, supply a presentation on the project, pictures and other collateral as requested.

Coalition members also have a record of effectively managing a variety of grants and programs. The City of San Jose, as a sub-awardee, has a long history of administering local, state, and federal grants supporting a wide variety of programs. This external assistance has provided tens of millions of dollars in funding that has appreciably advanced City service programs in housing, economic and workforce development, energy, public safety, transportation, water supply, wastewater resource recovery and solid waste management.

c. Staff Expertise
Three individuals from the City of Sunnyvale will be directly involved in managing and administering this grant and have useful experience to contribute to successfully support the project’s implementation.

Shikha Gupta, Solid Waste Programs Division Manager. Shikha has been a public servant for more than 17 years. She has progressive experience in program management for large regulatory public organizations with many leadership roles in vendor management, cross-functional team coordination, customer engagement, and strategy building. She has worked in the waste management discipline for more than 7 years managing multi-million dollars contracts and program budgets. She has comprehensive experience with complex contracts and managing industry relationships. Industry trend awareness and legislative application landscape are a part of her expertise. She has helped develop zero waste policies and is currently working on reuse and related systems for the City of Sunnyvale in her current role as the Solid Waste Programs Division Manager . Her current role entails managing the city's solid waste collection and processing systems of all waste streams in the City, operations of City’s Materials Recovery and Transfer Station and zero waste strategic plan elements including outreach. She has experience with grant management in her current and previous roles.

Bailey Hall, Environmental Programs Specialist II. Bailey Hall was the former Program Director of Climate Corps AmeriCorps from 2016-19. She managed a $3M CA state grant from CaliforniaVolunteers and authored the grant application for another $3M to fund the program from 2019-22. She’s worked in the City of Sunnyvale’s Solid Waste Division for the past 5 years, and is responsible for implementing behavior change campaigns, residential programs, and social media engagement related to proper materials reuse, recycling, and disposal. She was the lead applicant for the OWR4 CalRecycle SB 1383 Local Assistance grant, and is currently managing the Reusable Foodware Pilot the City is conducting with 14 participating restaurants.

Environmental Programs Manager.The person hired for this new position funded by the grant will have prior experience managing a federally funded grant, as well as relevant environmental experience that will be relevant to the reuse system proposed.

Coalition members and partners have relevant staff expertise to contribute to the successful management and implementation of the project as well. San Jose has experienced marketing and outreach staff currently promoting environmental programs through English, Spanish and Vietnamese channels. These staff will help amplify and disseminate outreach for program design and launch.

Perpetual is a nonprofit launched in early 2022 by a team with a collective 20+ years of experience in the reusable foodware space. Perpetual’s mission is to accelerate the adoption of reuse, starting with foodware in the US. The Perpetual team is led by Ellie Moss, a veteran sustainability and circular economy strategist and facilitator, and Dagny Tucker, founder of Vessel, a reusable service provider that operated for seven years. (Dagny has fully relinquished her ownership interest in Vessel and is dedicated to working at the system design level.) The Perpetual team brings a unique combination of knowledge of the reuse space, on-the-ground experience working to scale reusable foodware solutions, systems thinking and solution design skills, stakeholder engagement expertise, and rigorous project management capabilities.
22 Attachment 2

Budget and Timely Expenditure of Grant Funds
This proposal requests $48,346,219 in funds for the design and implementation of a community-scale reusable foodware system in The Cities of Sunnyvale, San Jose, Mountain View, Cupertino, and the County of San Benito. Please see the attached Budget Description document for detail and explanation of the requested funds and a description of the approach to ensuring timely and efficient expenditure of awarded funds.
2025
Year 1
2026
Year 2
2027
Year 3
2028
Year 4
2029
Year 5 Total
Project Phase
Mapping &
Engagement,
System Design
System Set Up,
Pre-Launch, Initial
Pilot Launch
(April), Expansion
Full System Launch
(Jan)
Scaling &
Improvements
Scaling &
Improvements
I. Personnel
Shikha Gupta, Solid Waste Programs
Division Manager, 5% FTE @ $207,579 $10,379 $10,379 $10,379 $10,379 $10,379 $51,895 Bailey Hall, Environmental Programs
Specialist, 5% FTE @ $125,679 $6,284 $6,284 $6,284 $6,284 $6,284 $31,420 Environmental Programs Manager,
100% FTE @ $174,929 $174,929 $174,929 $174,929 $174,929 $174,929 $874,645 TOTAL PERSONNEL $191,592 $191,592 $191,592 $191,592 $191,592 $957,960 II. Fringe Benefits
Solid Waste Programs Division Manager
@ 46.09% of salary $4,784 $4,784 $4,784 $4,784 $4,784 $23,918 Environmental Programs Specialist II, @

46.09% of salary $2,896 $2,896 $2,896 $2,896 $2,896 $14,481 Environmental Programs Manager, @

46.09% of salary $80,625 $80,625 $80,625 $80,625 $80,625 $403,124 TOTAL FRINGE BENEFITS $88,305 $88,305 $88,305 $88,305 $88,305 $441,524 III. Travel - None Requested $0 $0 $0 $0 $0 $0
IV . Equipment- None Requested $0 $0 $0 $0 $0 $0
V. Supplies - None Requested $0 $0 $0 $0 $0 $0
VI. Contractual - None Requested $0 $0 $0 $0 $0 $0
VII. Other
Subaward to San Jose $18,170 $5,975 $5,012 $5,275 $6,140 $40,571 Subaward to Perpetual $1,293,600 $960,000 $900,000 $276,000 $156,000 $3,585,600 Participant Support Costs $0 $22,642,923 $9,558,879 $6,272,847 $4,750,120 $43,224,769 TOTAL OTHER DIRECT COSTS $1,311,770 $23,608,898 $10,463,891 $6,554,122 $4,912,260 $46,850,940 TOTAL DIRECT $1,591,666 $23,888,795 $10,743,787 $6,834,018 $5,192,157 $48,250,423

INDIRECT
Indirect Personnel Costs - de minimis
10%
$19,159 $19,159 $19,159 $19,159 $19,159 $95,796
TOTAL $1,610,825 $23,907,954 $10,762,947 $6,853,178 $5,211,316 $48,346,219 23 Attachment 2

Budget Narrative
TOTAL CPRG FUNDING REQUESTED: $48,346,219
2025
Year 1
2026
Year 2
2027
Year 3
2028
Year 4
2029
Year 5 Total
Project Phase
Mapping &
Engagement,
System Design
System Set Up,
Pre-Launch, Initial
Pilot Launch (April),
Expansion
Full System
Launch (Jan)
Scaling &
Improvements
Scaling &
Improvements
I. Personnel
Shikha Gupta, Solid Waste
Programs Division Manager, 5%
FTE @ $207,579
$10,379 $10,379 $10,379 $10,379 $10,379 $51,895
Bailey Hall, Environmental
Programs Specialist, 5% FTE @
$125,679
$6,284 $6,284 $6,284 $6,284 $6,284 $31,420
Environmental Programs
Manager, 100% FTE @ $174,929 $174,929 $174,929 $174,929 $174,929 $174,929 $874,645 TOTAL PERSONNEL $191,592 $191,592 $191,592 $191,592 $191,592 $957,960 II. Fringe Benefits
Solid Waste Programs Division
Manager @ 46.09% of salary $4,784 $4,784 $4,784 $4,784 $4,784 $23,918 Environmental Programs
Specialist II, @ 46.09% of salary $2,896 $2,896 $2,896 $2,896 $2,896 $14,481 Environmental Programs
Manager, @ 46.09% of salary $80,625 $80,625 $80,625 $80,625 $80,625 $403,124 TOTAL FRINGE BENEFITS $88,305 $88,305 $88,305 $88,305 $88,305 $441,524 III. Travel
None Requested
TOTAL TRAVEL $0 $0 $0 $0 $0 $0
IV . Equipment
None Requested
TOTAL EQUIPMENT $0 $0 $0 $0 $0 $0
V . Supplies
None Requested
TOTAL SUPPLIES $0 $0 $0 $0 $0 $0
VI. Contractual
None Requested
TOTAL CONTRACTUAL $0 $0 $0 $0 $0 $0
VII. Other
1 Attachment 2

Subaward to San Jose $18,170 $5,975 $5,012 $5,275 $6,140 $40,571 Subaward to Perpetual $1,293,600 $960,000 $900,000 $276,000 $156,000 $3,585,600 Participant Support Costs $0 $22,642,923 $9,558,879 $6,272,847 $4,750,120 $43,224,769 TOTAL OTHER DIRECT COSTS $1,311,770 $23,608,898 $10,463,891 $6,554,122 $4,912,260 $46,850,940 TOTAL DIRECT $1,591,666 $23,888,795 $10,743,787 $6,834,018 $5,192,157 $48,250,423

INDIRECT
Indirect Personnel Costs - de
minimis 10%
$19,159 $19,159 $19,159 $19,159 $19,159 $95,796
TOTAL $1,610,825 $23,907,954 $10,762,947 $6,853,178 $5,211,316 $48,346,219 Budget Detail
I. Personnel
The budget amount for Personnel covers salary costs for three City of Sunnyvale employees for purposes of grant administration, subaward distribution, and participation in the coalition activities and oversight.

The City of Sunnyvale is requesting funding for a new position, an Environmental Programs Manager, to oversee and administer the grant. 100 percent of this staff person’s time will be devoted to managing the grant program and funding. In addition, two current staff will be involved, both at 5 percent of their time. See the workplan for additional information on the roles and relevant experience of these individuals.

Personnel
2025
Year 1
2026
Year 2
2027
Year 3
2028
Year 4
2029
Year 5 TOTAL
Shikha Gupta, Solid Waste
Programs Division Manager, 5%
FTE @ $207,579
$10,379 $10,379 $10,379 $10,379 $10,379 $51,895
Bailey Hall, Environmental
Programs Specialist, 5% FTE @
$125,679
$6,284 $6,284 $6,284 $6,284 $6,284 $31,420
Environmental Programs
Manager, 100% FTE @ $174,929 $174,929 $174,929 $174,929 $174,929 $174,929 $874,645 Total $191,592 $191,592 $191,592 $191,592 $191,592 $957,960 II. Fringe Benefits
The fringe benefits rate for the City of Sunnyvale individuals is 46.09 percent. Benefits include other leave, insurance, retirement, and workers compensation.

Fringe Benefits
2025
Year 1
2026
Year 2
2027
Year 3
2028
Year 4
2029
Year 5 TOTAL
Shikha Gupta, Solid Waste
Programs Division Manager $4,784 $4,784 $4,784 $4,784 $4,784 $23,918 2 Attachment 2

@ 46.09% of salary
Environmental Programs
Specialist II, @ 46.09% of
salary
$2,896 $2,896 $2,896 $2,896 $2,896 $14,481
Environmental Programs
Manager, @ 46.09% of salary $80,625 $80,625 $80,625 $80,625 $80,625 $403,124 Total $88,305 $88,305 $88,305 $88,305 $88,305 $441,524
III. Travel - None requested
IV . Equipment -None requested
V. Supplies - None requested
VI. Contractual - None requested
VII. Other
The majority of the funding requested falls in the “Other” category, which includes subawards to San Jose, as a coalition member, and the nonprofit partner, as well as Participant Support Costs to support the implementation of the reuse system.

The other coalition members (Cupertino, Mountain View, and San Benito County) are not requesting funding to cover costs.

Subaward to Coalition Member San Jose
The subaward to San Jose will cover the costs associated with their participation in the coalition, including attending regular meetings, reviewing and approving system documents and design decisions as relevant, and leveraging city communication channels and connections. Funding would cover involvement from 6 individuals from the Environmental Services Department, three from Integrated Waste Management and three from the Communications Division.

The table below shows the starting annual salary, fringe benefit rate, and expected hours spent on the project for each position. The cost budgeted includes an annual salary increase of 7 percent, as requested by the City of San Jose Budget Analyst, to account for contract increases and inflation.

Subaward to City of San Jose
2025
Year 1
2026
Year 2
2027
Year 3
2028
Year 4
2029
Year 5 TOTAL
Personnel, incl. Fringe Benefits
Public Information Manager
@$186,106 starting, Fringe
Benefits @ 69%
42 hrs 13 hrs 8 hrs 8 hrs 7 hrs
$7,520
$3,758 $1,245 $820 $877 $821
Senior Public Information
Representative, @$132,130

50.5 hrs 18 hrs 13 hrs 13 hrs 9.5 hrs $7,180
3 Attachment 2

starting, Fringe Benefits @62% $3,208 $1,223 $945 $1,012 $791 Public Information Representative
II @$97,144 starting, Fringe
Benefits @ 66%

54.5 hrs 18 hrs 13 hrs 13 hrs 9.5 hrs
$5,465
$2,545 $900 $695 $744 $582
Solid Waste Program Performance
Environmental Program Manager
@$155,699 starting, Fringe
Benefits @ 54%

35.5 hrs 12 hrs 11 hrs 11 hrs 13.5 hrs
$6,895
$2,657 $961 $943 $1,009 $1,325
Solid Waste Program Performance
Supervising Environmental Services
Specialist, @$149,117 starting,
Fringe Benefits @ 77%
45 hrs 12 hrs 11 hrs 10 hrs 15 hrs
$7,337
$3,226 $921 $903 $878 $1,410
Solid Waste Program Performance
Environmental Services Specialist,
@$128,266 starting, Fringe
Benefits @ 63%
45 hrs 11 hrs 10 hrs 10 hrs 15 hrs
$6,175
$2,775 $726 $706 $755 $1,212
Subaward Total $18,170 $5,975 $5,012 $5,275 $6,140 $40,571 The roles and expected tasks of the staff positions listed are as follows:

Public Information Manager
● Review outreach materials, promote stakeholder engagement through ESD's trilingual channels to residents and businesses
● Assist with grant reporting - provide any applicable SJ information to City of Sunnyvale to include in grant progress reports
Senior Public Information Representative
● Review outreach materials, promote stakeholder engagement through ESD's trilingual channels to residents and businesses
● Assist with grant reporting - provide any applicable SJ information to City of Sunnyvale to include in grant progress reports
Public Information Representative
● Review outreach materials, promote stakeholder engagement through ESD's trilingual channels to residents and businesses
● Assist with grant reporting - provide any applicable SJ information to City of Sunnyvale to include in grant progress reports
Solid Waste Program Performance Environmental Program Manager ● Attend coalition meetings; help design program, areas of SJ to target, help coalition with any RFP , etc.
● Reaching out to City Facilities' contacts about joining program ● Working with City departments to help operator install return bins on City streets (like street furniture) or at participating businesses
● Review outreach materials, promote stakeholder engagement through ESD's trilingual channels to residents and businesses
● Assist with grant reporting - provide any applicable SJ information to City of Sunnyvale to include in grant progress reports
4 Attachment 2

Solid Waste Program Performance Supervising Environmental Services Specialist ● Reaching out to City Facilities' contacts about joining program ● Working with City departments to help operator install return bins on City streets (like street furniture) or at participating businesses
● Review outreach materials, promote stakeholder engagement through ESD's trilingual channels to residents and businesses
● Assist with grant reporting - provide any applicable SJ information to City of Sunnyvale to include in grant progress reports
Solid Waste Program Performance Environmental Services Specialist ● Reaching out to City Facilities' contacts about joining program ● Working with City departments to help operator install return bins on City streets (like street furniture) or at participating businesses
● Review outreach materials, promote stakeholder engagement through ESD's trilingual channels to residents and businesses
● Assist with grant reporting - provide any applicable SJ information to City of Sunnyvale to include in grant progress reports
Subaward to Nonprofit Partner
Perpetual, given their expertise in designing city-scale reuse systems, will be a key project partner in the design and implementation of the proposed measure. Perpetual will be involved to provide technical advice and reuse system design expertise, leveraging their existing expertise and learnings from work implementing city-scale reuse systems. Funding will be provided via subaward.

Subaward to Perpetual
2025
Year 1
2026
Year 2
2027
Year 3
2028
Year 4
2029
Year 5 TOTAL
Personnel $400,000 $400,000 $300,000 $100,000 $100,000 $1,300,000 Fringe Benefits (25%) $100,000 $100,000 $75,000 $25,000 $25,000 $325,000 Travel
(Airfare, Lodging, Per Diem) $25,000 $25,000 $25,000 $5,000 $5,000 $85,000 Supplies
(Workshop Supplies) $10,000 $10,000 $0 $0 $0 $20,000
Workshop Space $5,000 $5,000 $0 $0 $0 $10,000
Participation Incentives $203,000 $0 $0 $0 $0 $203,000
Behavioral Marketing
Campaign $0 $200,000 $200,000 $0 $0 $400,000
Community Engagement
Partner $50,000 $50,000 $50,000 $0 $0 $150,000
Community Engagement Tech
Tool $10,000 $10,000 $0 $0 $0 $20,000
Behavior Baseline Study
Pre/Post Launch $50,000 $0 $50,000 $0 $0 $100,000
Circularity Assessment
Protocols $125,000 $0 $0 $100,000 $0 $225,000
5 Attachment 2

Life Cycle Assessment
Modeling $100,000 $0 $50,000 $0 $0 $150,000
Indirect (20%) $215,6000 $160,000 $150,000 $46,000 $26,000 $597,600 Subaward Total $1,293,600 $960,000 $900,000 $276,000 $156,000 $3,585,600 Personnel costs cover staff time and involvement in project development and implementation. This line item covers project management and technical assistance, input on community engagement, hands-on support throughout the project implementation, and ongoing support and data analysis and reporting through Year 5. Funding also covers fringe benefits at 25 percent of Personnel costs.

Travel funding covers Perpetual travel to the coalition cities to lead workshops and meet with stakeholders.

Participatory community design workshops are a key feature of the engagement process. Funding is requested to cover workshop supplies, space, and incentives to encourage participation, including stipends provided to participants. These stipends also help ensure accessibility for all community members. We expect to engage 1 percent of the area’s population, so approximately 13,000 people between the coalition communities. The cost listed includes $15 for a non-cash incentive (food, voucher, etc.) for each workshop or survey participant, and an additional $40 for vulnerable populations (which could be cash), to be reached through a more targeted engagement that aims to get 200 people to participate.

Other local organizations will be leveraged to assist with community outreach and engagement. These organizations and their roles will be identified as part of the initial stakeholder mapping process. The “Community Engagement Partner” line item is funding intended to go to relevant local organizations to support community engagement. These organizations will either be sub-awarded funding or will be selected through a competitive award process if necessary.

Other line items of this stage include;
● Behavioral Marketing Campaign: A marketing campaign based on behavior research will be designed to provide consumer outreach and education for the initial launch and full launch of the system.
● Community Engagement Tech Tool:Given the size of the population covered by this project, an online tool to facilitate community and stakeholder engagement will encourage involvement, in particular for review of the draft system design. Total cost is based roughly on the Bettermode platform, which costs $599 per month. Other platform options will be explored as well. ● Behavior Baseline Study Pre/Post Launch: Perpetual uses rigorous behavioral studies to understand attitudes and behaviors about reuse, with this research informing messaging towards consumers and businesses to ensure program adoption and uptake. Research will be conducted prior to and following system launch to measure how attitudes towards reuse and the circular economy may shift due to exposure to a community-scale reusable foodware system.

The cost listed is based on market research on behavior research vendors. ● Circularity Assessment Protocols: Through Perpetual’s partnership with the University of Georgia’s Circularity Informatics Lab, we will conduct their Circularity Assessment protocol, which provides information about the current material and waste flows and existing systems for managing them, including identification of underserved neighborhoods within communities. 6 Attachment 2

● Life Cycle Assessment Modeling: Perpetual uses a Life Cycle Assessment (LCA) parametric model, developed by independent academic LCA experts at the University of Michigan’s Center for Sustainable Systems, to test different design configurations for the system.

Funding would cover indirect costs at a rate of 20 percent.

Participant Support Costs
Participant Support Costs (PSCs) will be pro vided to the reuse se rvice provider(s) chosen during the System Design phase to support the provider(s) operation in the ar ea. PSCs will cover equipment, supplies, and other costs necessary to establish an operational reuse system and will include transition support for local restaurants as well as a subsidy t o support operational expenses in the first four years.

The necessary infrastructure costs have been estimated for a system designed with two washing hubs, one
serving the cities in Santa Clara County and one serving San Benito County. There are approximately 4,471 restaurants across the coalition area. We assume an initial launch at 239 restaurants (approximately 5% of restaurants in coalition c ommunities), with the pe rcent of total restaurants participating growing at a conservative rate of one percentage point per year, which in this case equates to approximately 50 additional participating restaurants each year. The estimates include 25 schools covered by the project.

M
ost of the costs fall in Year 2 of the program period, corresponding to the system set-up and pre-launch phases of the project. Following an initial launch targeted for April 2026, the full system launch will happen in January 2027.

Participant Support Costs
2025
Year 1
2026
Year 2
2027
Year 3
2028
Year 4
2029
Year 5 TOTAL
Project Phase
Mapping &
Engagement,
System Design
System Set Up,
Pre-Launch,
Initial Pilot
Launch (April),
Expansion
Full System
Launch (Jan)
Scaling &
Improvements
Scaling &
Improvements
Equipment & Infrastructure
Cleaning Infrastructure
(Equipment, Installation,
Maintenance, Rent)
$0 $1,953,000 $0 $331,000 $0 $2,284,000
Vehicles ($53,790 / unit) $0 $806,850 $107,580 $215,160 $107,580 $1,237,170 Supplies
Reusable Beverage Cups
(@$3/unit) $0 $5,371,084 $3,605,270 $2,273,415 $2,089,362 $13,339,131 Reusable Food Containers
(@$5/unit) $0 $6,402,778 $3,173,104 $1,877,865 $1,685,199 $13,138,946 Indoor Return Bins
($600/unit) $0 $448,523 $204,830 $237,021 $269,212 $1,159,586 Outdoor Return Bins (440 @
$2,500/unit) $0 $2,375,000 $0 $0 $0 $2,375,000
7 Attachment 2

Asset Tracking (Scanning
Devices for Vehicles)
(1 per vehicle @$250/unit)
$0 $3,750 $500 $500 $500 $5,250
Asset Tracking (Scanning
Devices for Dish Machines)
(2 per machine
@$2500/unit)
$0 $15,000 $5,000 $0 $0 $20,000
Secondary transport
containers ($15/unit) $0 $46,415 $2,012 $2,012 $2,012 $52,451 Other Supplies $0 $8,250 $2,750 $0 $0 $11,000
Other
Tech Platform Startup Fee $0 $300,000 $0 $0 $0 $300,000 Operating Expense Support $0 $4,743,407 $2,431,007 $1,309,048 $569,429 $9,052,891 Business Transition Support $0 $143,866 $26,826 $26,826 $26,826 $224,344 School Transition Support $0 $25,000 $0 $0 $0 $25,000
PSC Total $0 $22,642,923 $9,558,879 $6,272,847 $4,750,120 $43,224,769 Background on Cost Estimates
The costs defined in the above table are informed by past experiences launching reuse systems and interviews with over 30 reuse service providers.

Equipment & Infrastructure
Cleaning infrastructure includes washing equipment, installation, retrofitting a facility, maintenance, and facility rent. The system design process will deliver the precise models and other specifications for the equipment needed. The cost here includes 2 dishwashing machines. The machine used to estimate this cost is a Meiko Flight Machine (e.g., M-iQ B-M74 V8 P8). This style machine enables reusable assets to be washed cost effectively and is efficient from a water and electricity perspective. The cost includes installation, maintenance, and facility rent.

Electric cargo vans will be purchased for reusable item transport. The cost includes maintenance and insurance. Electric vehicles enhance the GHG reduction potential of the system and have lower maintenance costs compared to a gas powered alternative.

Supplies
In addition to the equipment listed above, a complete reusable foodware system includes QR code scanners for tracking, reusable cups & containers, return bins for collection, transport containers for batching and moving clean items, and rolling bins for transporting dirty items. The exact number and location of collection bins will be determined by the geospatial mapping that will happen during the system design process.
● Asset Tracking Devices: These are QR Code or RFID scanning devices (e.g., Cognex or Keyence). 8 Attachment 2

● Reusable Beverage Cups: $3/unit cost is an average based on the hot and cold cup types and sizes most commonly used in reusable foodware programs (e.g., 16 oz stainless steel, 12 oz stainless steel, 16 oz polypropylene).
● Reusable Food Containers: $5/unit cost is an average based on the most common sizes and materials used for reuse programs (e.g., 9” x 9” x 2.75” polypropylene clamshell, 6” x 9” polypropylene clamshell). K-12 schools are likely to choose stainless steel trays and/or plates. ● Indoor Return Bins: To make returns convenient, each participating restaurant will have a return bin. Each participating school, depending on school size and floorplan, will have an average of 10 return bins. The cost includes the cost of a non-tech-enabled indoor bin (~$350) plus the cost of installation, which includes bolting the bin in place (~$250). ● Outdoor Return Bins: Convenient return infrastructure throughout the city improves adoption of reusables. Outdoor return bin sites will be determined during the system design using geospatial analysis tools. The cost assumes a mix of tech-enabled (reads the asset’s QR Code before accepting the asset - similar to reverse vending machines for bottle deposits) (~$2500) and non-tech-enabled return bins, as well as a mix of sizes to fit in a variety of spaces and includes installation (~$650).
● Secondary Transport Containers: The buckets/totes (e.g., Uline transport totes) used to transport clean items. $15/unit is an average of standard buckets and totes being used today to move clean cups and containers. The estimated quantity is correlated to the number of cups and containers in the system.
● Other Supplies: Includes rolling bins (e.g., gaylord rollers) at $275/unit, 10 per dish machine, used to transport, sort, and store used products prior to washing.

Other
● A Tech Platform Startup Fee covers configuration and implementation of a reuse tech platform.

Tracking each reusable item is essential for measuring the program's environmental impact and ensuring operational efficiency. Serialization, assigning a unique identifier to each container, enables precise monitoring of usage patterns and return rates without tracking the individual users, ensuring data privacy. Many types of technology options exist both for the frontend consumer interface and the backend inventory management (tracking/sorting) of reusable assets. A tech platform will be selected based on required functionalities and preferences determined during the system design process.
● Operating Expense Support subsidizes system operation for the first several years. This support is necessary as the system gets established and would be phased out as the system becomes self-sustaining. The subsidy budget covers 100 percent of operating expenses in Year 1 of operation, 50 percent in Year 2, 25% in Year 3, and 10% in Year 4. This is based on Perpetual’s extensive modeling of reuse systems and research that suggests community-scale reuse programs can achieve profitability in their third or fourth year of operations. 1 Transition Support would provide microgrants to local businesses, K-12 schools, and other local organizations to switch to reuse. The budget includes $1,000 per business/school and assumes 50 percent of businesses and 100 percent schools opt in for support. This support will be critical to increase participation in the program and ensure it reaches expected adoption levels.

VIII. Indirect
Indirect costs are requested for personnel costs at the de minimis rate of 10 percent. 1 For example, see https://zerowasteeurope.eu/library/the-economics-of-reuse-systems/ 9 Attachment 2

Indirect Costs
2025
Year 1
2026
Year 2
2027
Year 3
2028
Year 4
2029
Year 5 TOTAL
Indirect Personnel Costs - de
minimis 10%
$19,159 $19,159 $19,159 $19,159 $19,159 $95,796
Expenditure of Awarded Funds
Throughout the duration of the project, the City of Sunnyvale will facilitate close coordination with coalition members and the designated system operator to ensure the alignment of expenditures with the approved budget, timeline, and project objectives. This will involve regular communication and collaboration to monitor progress and address any deviations from the planned expenditure. The coalition expects to partner with nonprofit organizations, including Perpetual and other local organizations, to implement the project. Perpetual will, at a minimum, provide technical expertise based on their experience designing and launching reuse systems in other U.S. cities. The City of Sunnyvale will provide subawards to San Jose, the other coalition member requesting funding, and to the nonprofit organization(s), including Perpetual.

For funds passed through to sub-recipients, each pass-through entity will be responsible for documenting and reporting expenditure of funds, with detailed documentation provided to the City of Sunnyvale in accordance with the grant agreement.

Participant support costs will be closely tracked by the City of Sunnyvale. These funds will be provided to the reuse service provider(s) chosen during the system design phase to support their operation in the area. Many of these costs will be incurred during system set up, when large purchases for equipment and supplies will be made. The reuse service provider(s) will be required to provide the City of Sunnyvale with anticipated and actual costs.

All tracking and reporting of expenditure of funds will be provided to the EPA grant administrator for regular review on an agreed timeline.

A Memorandum of Agreement (MOA) will be established among coalition members to delineate roles, responsibilities, and financial obligations. This MOA will specify that grant funds are to be used exclusively for project activities outlined in the grant proposal. The coalition will employ a collective governance approach, facilitating monthly check-in calls with all members and nonprofit partners to ensure active participation and engagement in project activities. Clear internal objectives will be established to guide coalition members in effectively utilizing grant funds and achieving project success.

Build America, Buy America Act Compliance
For every purchase of goods, products, and materials under this project, we will evaluate the Build America, Buy America (BABA) requirements and ensure that we comply with any relevant domestic content sourcing requirements.
10 Attachment 2