Title
Resolution to Accept Grant Funds from the U.S. Environmental Protection Agency for the Pollution Prevention at Food-Focused Businesses Program and Appropriate Funds to the Office of Sustainability and Innovations ($150,360.00) (8 Votes Required)
Memorandum
Attached for review and consideration is a resolution to authorize acceptance and appropriation of grant funding from the U.S. Environmental Protection Agency (“EPA”) to support a pollution prevention strategy and support systems at local food-focused businesses. This grant application seeks to address two major market challenges:
1. Gaps in technical knowledge regarding more sustainable refrigeration systems; and
2. A dearth of funding to implement more sustainable refrigeration practices.
The purpose of the Office of Sustainability and Innovations’ (“OSI”) grant application to the U.S. EPA was to address these challenges. To address the first challenge, OSI will launch a customized, one-on-one technical assistance program for small retail food businesses. Technical assistance will be provided by a qualified technician who will go to each business site, conduct an on-site refrigerant assessment, and guide folk through appropriate promising practices as outlined in the GreenChill Best Practices Guideline: Commercial Refrigeration Leak Prevention & Repairs.
To address the second challenge, OSI will create a competitive grant program to provide small retail food businesses with funds to upgrade or retrofit high-GWP refrigeration systems with low-GWP alternatives. Grantees will be required to provide a cash match for their project. Specific match requirements and criteria for the scoring of proposals will be created during the scope of this program and in tandem with small businesses - thereby ensuring project buy-in from those the program is targeting.
By program completion, the City strives to have reduced refrigeration emissions from at least 25 businesses by a total of 6,915.9 metric tons of carbon dioxide equivalent (MTCO2e) from pre-intervention levels and to have established a replicable model of refrigeration replacement that can scale throughout Washtenaw County.
In addition to authorizing the receipt of the U.S. EPA grant award and appropriation of the funds, OSI is seeking City Council’s authorization to create a refrigerant replacement grant program and make sub-awards to grant subrecipients as outlined in the enclosed proposal to the U.S. EPA.
Budget/Fiscal Impact: The total cost, including all project elements, is $150,360.00, of which $124,000.00 is anticipated to be provided through the U.S. EPA grant ($62,000.00 has been awarded this year, and another $62,000.00 will be awarded next year, contingent on the availability of funds, U.S. EPA funding priorities, and the progress of the program), and the remainder is in-kind support from OSI and/or funding already built into the OSI FY25 budget and anticipated for inclusion in the FY26 budget.
Staff
Prepared by: Missy Stults, Sustainability and Innovations Director
Reviewed by: Kim Hoenerhoff, Budget Analyst
Valerie Jackson, Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Strategy 5 of the City’s A2ZERO Plan focuses on advancing the circular economy;
Whereas, Greenhouse gas emissions from refrigerant systems are a potent source of climate pollution;
Whereas, local businesses, especially food-focused businesses, often have old, leaky, and failing refrigeration systems that need repair or replacement;
Whereas, The City’s Office of Sustainability and Innovations submitted a grant application to the U.S. Environmental Protection Agency to help local businesses repair and replace leaking refrigeration systems, thereby helping lower greenhouse gas emissions while simultaneously helping local businesses reduce operating costs;
Whereas, The U.S. Environmental Protection Agency selected the City’s grant application for award and has approved a total assistance amount of $124,000.00 (of which $62,000.00 has been awarded this year, and another $62,000.00 will be awarded next year, contingent on the availability of funds, U.S. EPA funding priorities, and the progress of the program) to accomplish the tasks in the City’s application; and
Whereas, This grant award would support launching a customized, one-on-one technical assistance program for small retail food businesses as well as the creation of a competitive grant program to provide small retail food businesses with funds to upgrade or retrofit high-global warming potential refrigeration systems with low global warming potential alternatives;
RESOLVED, That City Council accepts a grant award of $124,000.00 from the U.S. Environmental Protection Agency (of which $62,000.00 is contingent as explained above) and appropriates $150,360.00 to the FY25 Major Grants Program Fund with $124,000.00 coming from the U.S. Environmental Protection Agency grant award ($62,000.00 of which is contingent) and $26,360.00 coming from the Office of Sustainability and Innovations budget (or, alternatively, $88,360.00 should the City not receive the contingent portion of the award);
RESOLVED, That City Council authorize the creation of a refrigerant replacement grant program with funds for the program coming directly from this U.S. Environmental Protection Agency grant award;
RESOLVED, That all amounts herein are without regard to fiscal year; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution.