SUBJECT/RECOMMENDATION:
Title
Authorize acceptance of the U.S. Department of Energy (DOE)’s Office of State and Community Energy Programs (SCEP) Energy Efficiency and Conservation Block Grant (EECBG) program formula award in the amount of $169,090.00 by approving the special terms and conditions of the equipment rebate voucher application and authorize the appropriate officials to execute same.
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SUMMARY:
The City of Clearwater was allocated $169,090.00 in the EECBG Program as shown in Table 1a of the DOE Formula Grant Funding Allocations by Local Government for the EECBG Program - Sec. 40552(b) of the Infrastructure Investment and Jobs Act (IIJA) of 2021. A pre-award information sheet was submitted by the City to DOE in April 2023 as an indication of interest in receiving funds.
With the EECBG Program award of $169,090.00, the City proposes to purchase two light duty EVs as pooled vehicles for the Public Works Department to replace existing vehicles on the vehicle replacement list (VRL), purchase and install one dedicated level two dual-port EV charger, as well as partially pay for electrical capacity improvements at the fleet maintenance facility to facilitate the EV charger. The fleet maintenance electrical capacity build out is quoted at $92,505.72 and $64,361 of grant funding is expected to be leveraged. The remaining $28,000 can be funded by General Services. This upgrade cost is considerably less than the cost to replace two vehicles and can be additional savings if similar grants are found in the future. Upon official award of the DOE grant, the intended use of this grant will be brought to Council for formal approval at a later date.
Staff is recommending the proposed transportation electrification equipment for several reasons:
1) Grant funding will pay for two planned vehicle replacements to be funded through this program instead of City funds. Staff evaluated vehicle usage to ensure electric vehicles would align with daily uses of the specific role of these electrical vehicles.
2) Potential for GHG reduction, as well as aligning with our Alternative Fuel Vehicles and Vehicle Purchasing Guidelines (Policy 7008). The City’s sustainability action plan, Greenprint 2.0, includes citywide greenhouse gas (GHG) emissions reduction goals: 25% by 2035 and 80% by 2050 compared to the baseline year of 2007. Energy use and transportation are the top two sectors for the city’s GHG emissions.
3) These EVs can provide limited power for city staff at remote locations instead of utilizing louder generators.
Incorporating electric vehicles requires charging infrastructure so staff is leveraging this grant funding to install electrical charging stations at the fleet maintenance facility for potential future maintenance needs. The two purchased EVs will reside at the MSB parking garage. The MSB parking garage was designed to install EV chargers and Parking Division will be installing and covering the cost of installation of EV chargers to support these vehicles and EVs owned by city employees. Additionally, the EV chargers at the MSB parking garage will be available to the public after hours and on weekends and be able to generate revenue.
This grant funding does not require City matching funds to receive the grant funding. However, General Services will fund a portion of the electrical capacity build as indicated above.
the grant agreement requires indemnification, which necessitates City Council approval of the City’s acceptance of the award at this time.
STRATEGIC PRIORITY:
Objectives 1.5 Embrace a culture of innovation that drives continuous improvement and successfully serves all our customers; 4.1, Providing proactive climate resiliency strategies based on science; 4.2, Adopting renewable resource usage; and 4.4 Develop accessible and active transportation networks that enhance pedestrian safety and reduce citywide greenhouse gas emissions.
