HomeMy WebLinkAboutItem 11 - 2019 Air Pollution Control District Grant Application for Zero Emission Transit
Department Name: Public Works
Cost Center: 5201 (Transit)
For Agenda of: November 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Shelly Stanwyck, Assistant City Manager & Interim Public Works Director
Prepared By: Gamaliel Anguiano, Transit Manager
SUBJECT: AUTHORIZE 2019 AIR POLLUTION CONTROL DISTRICT GRANT
APPLICATION TO SUPPORT PROCUREMENT OF INFRASTRUCTURE
NEEDED TO TRANSITION TO ZERO EMISSION TRANSIT VEHICLES
RECOMMENDATION
1. Authorize the Public Works Director, or their designee, to execute and file grant applications
with the Air Pollution Control District (APCD) for transit projects and to execute any related
grant applications, certifications, assurances, forms, agreements, and associated documents
on behalf of the City; and
2. Approve a Transit Budget Amendment to increase the budget reflecting these grant funds, if
awarded.
DISCUSSION
Background
On December 17, 2018 the California Air Resources Board adopted the Innovative Clean Transit
(ICT) fleet rule. The ICT requires all public transit agencies to transition to a 100 percent zero-
emission bus (ZEB) fleet by 2040. The City of San Luis Obispo is state mandated to have 25%
of its transit vehicles be electric by 2026. Transitioning the City’s transit fleet to zero emission
vehicles is consistent with the City’s adopted 2019-21 Major City Goal for Sustainable
Transportation.
Conventional wisdom is that transit facility infrastructure should precede any ZEB purchase and
delivery and will need to commence well in advance of the ICT 2026 mandate. Several City
initiatives are underway to address needed infrastructure upgrades necessary for the transition to
electric transit vehicles. Pursuit of the subject grant application is part of that effort.
If secured, this APCD grant will help fund the procurement of electric vehicle charging units
(infrastructure for an electrified transit fleet). Initial quotes are approximately $80,000 per charge
unit. The City’s Transit Program would like to procure three of these units; the total cost of
$250,000 for the three units is reflected in the grant application.
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The City’s Financial Management Manual Policy 740 requires that the City Council approve
grant applications equal to or greater than $5,000. Council approval is therefore sought to
approve staff’s application to the APCD to request $250,000 towards capital purchases with
regard to electric transit vehicles charging units. Aiding in at least one part of the transition
process and meeting the ICT mandate.
Grant opportunities, in addition to this one, can augment City funds for the purposes described
above vehicle electrification goals. Current and future opportunities will likely be available from
the U.S. Department of Transportation, California Air Resources Board, and the San Luis Obispo
County Air Pollution Control District. Currently, the Alt Fuel and EV Infrastructure Program
overseen by the San Luis Obispo County Air Pollution Control District (APCD) could also help
support important EV charging infrastructure for zero emission transit vehicles. Each grant has a
specific purpose and will help the Transit program address various parts needed to meet the ICT
mandate. Pursuing these discretionary grants will be critical as there are no other identified
funding sources to aid the Transit program in meeting the ICT mandate.
The submittal of grant applications to support EV charging infrastructure and conversion to zero
emission transit vehicles meets the City’s Grant Management Policy outlined in Section 740
because there is an opportunity to significantly leverage City funds on balance with only modest
staff time required to prepare the grant application; the proposed grant would result in priority
work efforts being implemented; and, all grant administration, tracking, and reporting will be
conducted in accordance with applicable City policy and any requirements specified in an
awarded grant contract.
Policy Context
The recommended action to apply for grant funding resources in support of transit electrification
will assist the City in ensuring compliance with the California Air Resources Board’s adopted
Innovative Clean Transit (ICT) fleet rule. Transitioning the City’s transit fleet to zero emission
vehicles is also consistent with the City’s adopted 2019-21 Major City Goals for Sustainable
Transportation and Climate Action.
Public Engagement
The City’s adopted 2019-21 Major City Goal for Sustainable Transportation is reflective of the
substantial public engagement process that was undertaken as part of the 2019-21 Financial Plan
including online surveys, public meetings, and the Goal Setting workshop.
CONCURRENCES
The Sustainability Manager concurs with submitting grant applications in support of the City’s
efforts to accomplish the objectives stated herein.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in
this report, because the action of submitting grant applications and proposals does not constitute
a “Project” under CEQA Guidelines Sec. 15378. If successful, any City projects using grant
funding would undergo all applicable reviews under CEQA and would be conducted in a manner
consistent with adopted City plans.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
Transit Fund $0 $5,000 $5,000
State $0 $0 $0
Federal $0 $0 $0
Fees $0 $0 $0
Other: APCD $250,000 $0 $250,000
Total $250,000 $5,000 $255,000
There is no impact on the City’s General Fund as a result of applying or receiving these grant
funds because this falls under the Transit Fund. If awarded these funds will supplement the
Transit Enterprise fund in achieving a capital project needed to support electric vehicles. This
infrastructure project, at this time, has no other identified funding source beyond limited federal
5307 funding and their local match requirements.
As stated previously, there are several low to no-cost initiatives underway to address needed
infrastructure upgrades necessary for the transition to electric transit vehicles. This grant is just a
part of several electric fleet readiness efforts. Other grants and agreements are also being
researched and prepared for Council’s consideration, in the near future, t o support construction
and installation costs.
Some nominal ongoing costs are to be expected and can be accommodated within the Transit
Program’s operating budget. These costs are largely tied to annual maintenance of the equipment
(i.e. cleaning out filters). These costs are approximate $5,000 for the three chargers there on.
Funds to support this will largely come from the savings achieved as a result from less purchase
of diesel fuel.
The City’s Public Works Department has time allocated within its normal work program to
prepare and submit grant applications. If successful, these grant facilities and other public-private
agreements, will significantly leverage and augment the City’s funds budgeted for this purpose in
the City’s Transit Fund. Exact project and maintenance costs, however, are not yet known.
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ALTERNATIVES
1. The City Council could request additional information or analysis from staff.
2. The City Council could deny the request to submit grant applications.
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