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HomeMy WebLinkAboutLtr. of Cmtmnt US Dept. of Energy Clean Cities FY 09REQUEST: SUBMITTED BY: DATE: CONTENTS: Recommendation CITY OF PALM DESERT CITY MANAGER'S OFFICE STAFF REPORT IT SUBMITTAL OF A LETTER OF COMMITMENT TO PARTICIPATE UNDER THE U.S. DEPARTMENT OF ENERGY CLEAN CITIES FY09 PETROLEUM REDUCTION TECHNOLOGIES PROJECTS FOR THE TRANSPORTATION SECTOR. John M. Wohlmuth, City Manager May 21, 2009 1. Proposed Letter of Commitment By Minute Motion, that the City Council: 1. AUTHORIZE the City Manager to Execute a Letter of Commitment to Participate under the U.S. Department of Energy Clean Cities FY09 Petroleum Reduction Technologies Projects for the Transportation Sector. Discussion The South Coast Air Quality Management District (SCAQMD) indicated its willingness to team with the Coachella Valley Association of Governments' (CVAG) member jurisdictions to participate under the U.S. Department of Energy Clean Cities FY09 Petroleum Reduction Technologies Projects for the Transportation Sector. The benefit of this collaborative approach is to meet the $5 million minimum funding requirement of this program. This application could be solely for the Coachella Valley region if enough projects are identified, or it can be combined with other areas within SCAQMD for a regional application. The Clean Cities Program offers $300 million to support at least 30 alternative fuels or advanced vehicles projects and requires a fifty percent (50%) participant cost share. CVAG staff indicated that the City's costs of purchasing standard vehicles before any CNG conversion should meet this matching requirement. These funds would only pay for the differential cost between standard and alternative fuel vehicles. Technologies eligible for funding include a number of different Tight and heavy-duty vehicles, including hybrid, plug-in electric hybrid, hydraulic hybrid, electric, fuel cell, and compressed natural gas vehicles. In addition, projects can support refueling infrastructure for alternative fuels, including biofuels and natural gas. Other efforts eligible for funds include public awareness campaigns and training programs on alternative fuel and advanced technology vehicles and infrastructure. Letter of Commitment -DOE May 21, 2009 Page 2 of 2 This funding request doesn't require a Letter of Commitment, but SCAQMD and CVAG staff indicated that such a document demonstrates project readiness and may result in a more favorable funding consideration Fiscal Impact The City of Palm Desert is requesting funding for various fleet service vehicles (ten CNG pickup trucks, six CNG sedans, and two Hybrid SUVs) and for a future CNG ambulance medic unit. The total amount requested for funding is $846,000. The City's portion of these funds would be the differential costs as previously indicated. Staff anticipates this cost differential to be approximately $602,000. Submitted by: Steen . Aryan Assistant to theanager / 7/ Appd by: o n M. Wohlmuth 7ty Manager Reviewed by: Paul S. Director 16f Fj nce/City Treasurer CITY COUNCIL ACTION APPROVED ✓ DENIED RECEIVED OTHER MEETING DATE 5 0/-O T AYFS•,p/?SD/1) Fe usbn,F1ier-fy, /'e/ NOES: Af 0fl ABSENT: Nen e- ABSTAIN: Al j')n VERIFIED I3Y: Original on File with City Clerk's Office a \CityMgr\Stephen Aryan\Agenda Reports\DOE Letter of Commitment.doc May 22, 2009 U.S. Department of Energy National Energy Technology Laboratory 626 Cochrans Mill Road Pittsburgh, PA 15236-0940 Dear Sir or Madam: Subject: Clean Cities FY09 Petroleum Reduction Technologies Projects for the Transportation Sector (Funding Opportunity Number DE-PS26-09NT01236-04) The City of Palm Desert is pleased to join the Coachella Valley Clean Cities Coalition as a project partner in an application funding request for alternative fueled vehicles and natural gas fueling infrastructure projects. These projects are funded under the U.S. Department of Energy, Clean Cities FY09 Petroleum Reduction Technologies Projects for the Transportation Sector (Area of Interest #4). This correspondence serves as a statement of the City's commitment to purchase alternative fueled vehicles and/or natural gas fueling infrastructure if its funding application is successful. Palm Desert's participation is described in the proposal submitted by the Coachella Valley Clean Cities Coalition and the South Coast Air Quality Management District. This commitment was authorized by the Palm Desert City Council on May 21, 2009. The vehicles and/or infrastructure purchased will reduce Palm Desert's use of petroleum and expand the use of alternative fuels, with associated benefits to the economy and the environment relative to reduction in criteria/toxic pollutants and greenhouse gas reduction. Should you have any questions or comments on this matter, please contact Stephen Y. Aryan, Assistant to the City Manager, or me at telephone no. (760) 346-0611. We appreciate the opportunity for funding to support our alternative fuels/technology program and look forward to your favorable consideration of this application. Sincerely John M. Wohlmuth City Manager cc: Honorable Mayor and Members of the City Council Thomas Kirk, Coachella Valley Association of Governments Katie Barrows, Coachella Valley Association of Governments Dean Saito, South Coast Air Quality Management District Sheila Gilligan, Assistant City Manager, Community Services Homer Croy, Assistant City Manager, Development Services Mark Greenwood, Director of Public Works Patricia Scully, Sr. Administrative Analyst Stephen Aryan, Assistant to the City Manager