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SR 06-14-2016 3H City Council Report City Council Meeting: June 14, 2016 Agenda Item: 3.H To: Mayor and City Council From: Dean Kubani, Sustainability Manager, Office of Sustainability & the Environment Subject: Resolution to Accept California Energy Commission (CEC) Grant for MicroGrid Recommended Action Staff recommends that City Council: 1. Adopt the attached resolution necessary to accept the grant award from the California Energy Commission for Phase One of the proposed Microgrid project at the City Yards. Executive Summary On May 24, 2016, Council approved the recommended actions to accept a grant award from the California Energy Commission under GFO-15-312, by authorizing the City Manager to accept the award and execute the necessary documents; and authorizing the budget changes to accommodate the revenue. The grant award of $1,487,609 will be used to support the design and development of a multiuser microgrid based within City Yards. In order to accept the grant, Council needs to formally adopt a resolution. The necessary resolution is included with this report for Council adoption. Background On November 24, 2015, the California Energy Commission (CEC) released a grant 2016. The solicitation called for applicants to propose measures to plan, design and permit communities that: Minimize need for new energy infrastructure costs, such as transmission and distribution upgrades. 1 of 3 Provide energy savings by achieving and maintaining zero net energy community status (accounting for behavior and increasing loads from vehicle and appliance electrification). Support grid reliability and resiliency by incorporating technologies such as energy storage. Are financially attractive from a market standpoint (developers, home buyers, renters). Provide affordable access to renewable energy generation, energy efficiency upgrades, and water efficiency and reuse technologies that reduce electricity consumption for all electric ratepayers within the community. Makes use of smart-grid technologies throughout the community. Santa Monica was awarded a Phase I grant of approximately $1.5M to plan, design and permit a small, localized energy grid (microgrid) consisting of onsite renewable generation and energy storage based at the City Yards and Bergamot Arts Center. A Phase II grant opportunity would become available in early 2018, which would fund $8M for construction of such a project. Discussion A resolution must be submitted to the California Energy Commission in order to formally accept the award. On May 24, 2016, Council approved the recommended actions to accept the grant award from the California Energy Commission under GFO-15-312 and to authorize the City Manager to execute the necessary documents. Unfortunately, no resolution was included for the Council to adopt. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. 2 of 3 Prepared By: Garrett Wong, Sustainability Analyst Approved Forwarded to Council Attachments: A. Resolution to Accept CEC grant final B. May 24, 2016 Council Meeting - Item 3I - Grant for Santa Monica City Yards Advanced Energy District 3 of 3 wĻŅĻƩĻƓĭĻʹ wĻƭƚƌǒƷźƚƓbƚ͵ЊЉВЏЌ Λ//{Μ