Title
Resolution to Approve Replacement Sub-Grants from the Michigan Department of Transportation for Biofuel Station Construction
Memorandum
The attached resolution will authorize sub-grant agreements with 2991 S. State St. Inc. and Speedway Super America, LCC to replace previous sub-grantees Futureman and State Oil Company, respectively.
These sub-grants are part of a federal "CMAQ" grant, which is administered through the Michigan Department of Transportation (MDOT) and provides funding for three public E-85 stations, two public biodiesel stations, and a private E-85 pump for the City of Ann Arbor municipal fleet. Grant funds will pay for 80% of the installation costs for these biofuel stations, with 20% provided by the station owners, as shown on the attached table.
The only substantive change with the new sub-grantees is that 2991 S. State St. Inc. will install one 4,000 gallon biodiesel tank, whereas two 1,000 gallon tanks had initially been planned with Futureman.
For federal CMAQ funds, a non-profit is allowed to apply for a grant but must find an "Act 51 Sponsor" (a governmental agency) to assume all legal and financial liabilities for the project. The City of Ann Arbor agreed to sponsor the Clean Energy Coalition’s grant application because it closely matches our goals of encouraging renewable energy use in our community and because the City of Ann Arbor is a member of the Ann Arbor Area Clean Cities Coalition, a US Department of Energy Program to encourage renewable fuel use, which is now managed by the Clean Energy Coalition. Clean Energy Coalition is serving as the project manager for this project with the City of Ann Arbor as its "Act 51 Sponsor".
This project is part of the activities of the Ann Arbor Area Clean Cities program that has focused on displacing imported fossil fuels and improving air quality in Washtenaw County since 1999. To date this program has managed over $700,000.00 in state and federal grant funds in support of these goal...
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