RECOMMENDATION: Approve an ordinance granting the General Services Department (GSD) authorization to apply for, accept, and expend funding from the Energy Efficiency and Conservation Block Grant (EECBG) from the DEPARTMENT OF ENERGY (DOE).
SPECIFIC EXPLANATION: The Department of Energy’s Office of State and Community Energy Programs released a non-competitive Formula Grant under the EECBG Program. The total grant award is $2,006,020.00. Applications must be received by January 31, 2024, and the project period is two years. This grant does not require a cash match or in-kind contribution from the City of Houston (“The City”).
The EECBG Program provides financial assistance to eligible recipients for the implementation of strategies that reduce fossil fuel emissions, reduce energy use, improve energy efficiency, and build a clean and equitable economy that prioritizes disadvantaged communities.
The City has taken the preliminary steps in the application process, including submittal of a Pre-Information Award Sheet, drafting an Energy Efficiency and Conservation Strategy, and creating a Budget Justification.
If awarded the grant, GSD intends to fund the following activities championed by EECBG under established blueprints:
· Perform energy efficiency upgrades at City of Houston facilities, informed by Preliminary Energy Assessments conducted by the State Energy Conservation Office (SECO);
· Establish an internal Revolving Loan Fund (RLF). The RLF will leverage utility rebates and/or savings produced from energy efficiency projects to fund future energy efficiency projects, maximizing the impact of grant funds over multiple project lifecycles;
· Solar + battery storage at a community-facing facility. Building assessments are underway. The selected project site will consider parallel efforts to fund on-site renewables, as well as DOE guidance on disadvantaged communities;
· Performance Standards and Stretch Codes. Houston Public Works will develop training material and refine existing processes to promote voluntary property owner compliance with energy efficiency stretch codes.
GSD recommends City Council authorize the Director or his designee to act as the City’s representative in the application process with the authority to apply for, accept, and expend the grant funds as awarded and to apply for, accept, and expend all subsequent awards, if any, to extend the budget period, and to authorize the Mayor and the Director to execute all related agreements with the approval of the City Attorney in connection with the grant not to exceed five years.
The General Services Department also recommends City Council authorize the creation of a new Interest-Bearing Grant Fund for the Revolving Loan Fund.
FISCAL NOTE: No fiscal note is required on grant items.
DIRECTOR’S SIGNATURE/DATE:
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C. J. Messiah, Jr.
General Services Department