The URL can be used to link to this page

Home My WebLink AboutR-2023-180 Resolution authorizing the return of Clean Green Resources and Electrification Project Grant to the Department of Commerce for $1,000,000 RESOLUTION NO. R-2023-180 A RESOLUTION authorizing the City to return the Clean Green Resource and Electrification Project grant from the Department of Commerce for an Anerobic Digester. WHEREAS, in 2021, the City of Yakima (City) applied for two grants to conduct a feasibility study regarding the applicability of an Anaerobic Digester for the Yakima Valley to reduce solid waste at the Yakima County Terrace Heights landfill at the direction of City Council, and WHEREAS, the City was not successful in obtaining the first grant ranging from eight hundred thousand ($800,000) to two million ($2M) with the EPA, and WHEREAS, the City was successful in obtaining the second grant with the Department of Commerce; being awarded the Clean Green Resource and Electrification Project grant with the Department of Commerce in an amount not to exceed $1,000,000, and WHEREAS, even though the original intent of the project was to conduct a feasibility study on the use of an anerobic digester that could potentially serve the entire Yakima County, the Clean Green Resource and Electrification Project grant required the purchase and operation of an anaerobic digester as a grant funding "deliverable" requirement, and WHEREAS, the cost of conducting both a comprehensive feasibility study in addition to purchasing and operating an anerobic digester, exceeded the available grant funding, and WHEREAS, due to the City's inability to afford a comprehensive feasibility study in addition to purchasing and operating an anerobic digester capable of serving Yakima County, the Department of Commerce has advised the City to return the grant, and WHEREAS, the City Council finds that it is in the best interests of the City of Yakima and its residents to return the Department of Commerce grant; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to return the Clean Green Resource and Electrification Project grant from the Department of Commerce for an Anerobic Digester in the amount of$1,000,000. ADOPTED BY THE CITY COUNCIL this 12th day of December, 2023. 111 ' A ��`1 Janice Deccio, Mayor ATTEST: Rosalinda Ibarra, City Clerk �A.‘ ,-- 1 0*s,` .7s BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9. For Meeting of: December 12, 2023 ITEM TITLE: Resolution authorizing the return of Clean Green Resources and Electrification Project Grant to the Department of Commerce for $1,000,000 SUBMITTED BY: Scott Schafer, Public Works Director *Trace Bradburn, Solid Waste and Recycling Manager SUMMARY EXPLANATION: The City of Yakima (City) is seeking approval to return a grant back to the Department of Commerce. In 2021, the City of Yakima (City)applied for two grants to conduct a"feasibility study" regarding the applicability of an Anaerobic Digester for the Yakima Valley to reduce solid waste at the Yakima County Terrace Heights landfill at the direction of City Council. The first grant ranging from eight hundred thousand ($800,000)to two million ($2M)was with the EPA to conduct a feasibility study on developing new anaerobic digestion capacity for processing food waste including technology and process evaluation as well as community outreach and training. The City was not successful in obtaining this grant. The second grant was with the Department of Commerce for one million dollars ($1 M). It was to conduct a feasibility study on anaerobic digestion solutions that could provide a benefit to impoverished community members with an inexpensive solution for organic waste and inexpensive access to energy. The City was awarded the Clean Green Resource and Electrification Project grant with the Department of Commerce in an amount not to exceed $1,000,000. The original intent of the project was to conduct a feasibility study on the use of an anerobic digester that could potentially serve the entire Yakima County. However, one caveat of the Clean Green Resource and Electrification Project grant, is that because it is funded by the State's Capital Fund, the purchase and operation of a capital asset as part of the scope of work is a "deliverable" requirement of the grant. In this case, the Department of Commerce was specifically requiring the City to purchase and operate an anerobic digester over a 13-year period. With limited funding due to not being awarded the EPA grant, the City proceeded in researching anaerobic digesters on a smaller scale than what was originally planned. The cost of conducting both a comprehensive feasibility study in addition to purchasing and operating a smaller anerobic digester, still exceeded the available grant funding. The City of Yakima was unable to establish necessary funding and partnerships to move forward with the project. The City had previously reached out to Yakima County, WSU and the Downtown 2 Rotary Club, but because a feasibility study had not already been completed, there was no interest moving forward. The City recognizes the importance of reducing the amount of solid waste being disposed of at the Terrace Heights landfill and it is our intention to pursue applying for other grants in which the scope of work would be defined as only conducting a comprehensive "feasibility study." The City will be in a better position to move forward in a successful manner once a feasibility study has been completed and will be able to approach potential partners such as Yakima County with actual data. Due to the City's inability to afford a comprehensive feasibility study in addition to purchasing and operating an anerobic digester capable of serving Yakima County, the Department of Commerce has advised the City to return the grant. Attached is the letter from the Department of Commerce. The Sustainable Yakima Committee also recommends to the City Council the return of the Department of Commerce grant. ITEM BUDGETED: No STRATEGIC PRIORITY: Neighborhood and Community Building APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Description Upload Date Type D Resolution DOC Grant Return 11/28/2023 Resolution D Memo from the Department of Commerce 11/20/2023 Backup Material 3 RESOLUTION NO. R-2023- A RESOLUTION authorizing the City to return the Clean Green Resource and Electrification Project grant from the Department of Commerce for an Anerobic Digester. WHEREAS, in 2021, the City of Yakima (City) applied for two grants to conduct a feasibility study regarding the applicability of an Anaerobic Digester for the Yakima Valley to reduce solid waste at the Yakima County Terrace Heights landfill at the direction of City Council, and WHEREAS, the City was not successful in obtaining the first grant ranging from eight hundred thousand ($800,000) to two million ($2M) with the EPA, and WHEREAS, the City was successful in obtaining the second grant with the Department of Commerce; being awarded the Clean Green Resource and Electrification Project grant with the Department of Commerce in an amount not to exceed $1,000,000, and WHEREAS, even though the original intent of the project was to conduct a feasibility study on the use of an anerobic digester that could potentially serve the entire Yakima County, the Clean Green Resource and Electrification Project grant required the purchase and operation of an anaerobic digester as a grant funding "deliverable" requirement, and WHEREAS, the cost of conducting both a comprehensive feasibility study in addition to purchasing and operating an anerobic digester, exceeded the available grant funding, and WHEREAS, due to the City's inability to afford a comprehensive feasibility study in addition to purchasing and operating an anerobic digester capable of serving Yakima County, the Department of Commerce has advised the City to return the grant, and WHEREAS, the City Council finds that it is in the best interests of the City of Yakima and its residents to return the Department of Commerce grant; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to return the Clean Green Resource and Electrification Project grant from the Department of Commerce for an Anerobic Digester in the amount of$1,000,000. ADOPTED BY THE CITY COUNCIL this 12th day of December, 2023. Janice Deccio, Mayor ATTEST: Rosalinda Ibarra, City Clerk 4 fi n rp STATE OF WASHINGTON DEPARTMENT OF COMMERCE 1011 Plum Street SE • PO Box 42525 • Olympia,Washington 98504-2525• 360-725-4000 www.commerce.wa.gov September 27, 2023 Mr.Trace Bradburn, Solid Waste Manager City of Yakima 129 N. 2nd Street Yakima, WA 98901 Re: Next steps for the city's Clean Green Resources& Electrification grant contract; award number 22- 92201-002. Dear Mr. Bradburn- Thank you for working with us to negotiate the contract and scope for the City of Yakima's Clean Green Resources and Electrification Project.The contingent award was not to exceed $1,000,000. Per the city's original application,the project intended to "complete a robust feasibility study and evaluate anaerobic digestion to recover biogas, generate electricity, and capture nutrients from organic waste streams while reducing air emissions by pilot testing emerging technologies for cleaning and electrifying its waste hauling fleet." We understand that due to escalating project costs and trying to establish partnerships, your project's scope needed to be revised since the initial conditional award was given on February 28, 2022. We appreciate the work you have put in to try to make this a viable project despite those challenges while keeping within the confines of your awarded application and the intent of the Clean Energy Fund 4, Research Development& Demonstration (RD&D) grant program. Unfortunately,the latest proposal to truncate the scope of work to a feasibility study for an anaerobic digester coupled with a non-operational demonstration digester strays too far from the intent of the RD&D program and the original application and we cannot accept this scope change. If you have any additional proposals not previously mentioned, please let us know. If you do not,then you otherwise have the option of declining the award and re-applying in the next round of RD&D, which is expected to open in early October. Please send us a response to confirm the City of Yakima's decision. Thank you again for your work on the project.We look forward to seeing future proposals. Sincerely, [signed] Larry Mattson Renewable Energy Grants section supervisor Energy Programs in Communities Attachment: Original award letter