Title
Apply for U.S. Environmental Protection Agency Grant Opportunities for Federal Fiscal Year 2022-23 - Federal Bipartisan Infrastructure Law Funding (Ordinance S-49387)
Description
Request to authorize the City Manager, or his designee, to apply for, accept, and enter into agreements for the disbursement of grants from the United States Environmental Protection Agency through the Federal Fiscal Year 2022-23 Solid Waste Infrastructure for Recycling Grant and Consumer Recycling Education and Outreach Grant opportunities. If awarded, the funding will be used to upgrade the North Gateway Materials Recovery Facility, retrofit the 27th Avenue Materials Recovery Facility education room, and install utility infrastructure at the Resource Innovation Campus. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. Funding for these grant opportunities is available through the Federal Bipartisan Infrastructure Law. The total grant funds applied for will not exceed $10 million.
Report
Summary
In the 1980s, the Mayor and City Council led Phoenix to establish a comprehensive solid waste management approach with a focus on reducing, reusing, and recycling. In response to this strategy, the Public Works Department commenced a commingled curbside recycling program. On June 28, 1995, Council approved development of a Materials Recovery Facility (MRF) at the 27th Avenue Solid Waste Management Facility as part of the Phoenix Recycles Program. The facility has been operational since Sept. 1, 1998. The City's second MRF opened at North Gateway Transfer Station in 2006. The objective of Phoenix’s recycling program is to conserve landfill space, which is becoming a challenge across the United States, and to create economic value by selling select recyclable materials (commodities) to various markets. By seeing this material as a resource, Phoenix has made the paradigm shift from a linear to a circular model of waste management whereas materials are diverted from the landfill and redistributed to create economic activity.
In January 2021, the Public Works Department suspended operations at the 27th Avenue MRF due to the equipment reaching the end of its useful life and no longer being effective at capturing commodities that are prevalent in the current recycle stream. Since the operational suspension, recyclables from the 27th Avenue facility are hauled to the North Gateway MRF for processing. Phoenix is currently investing $25 million to construct a new state-of-the-art MRF at the 27th Avenue facility that is expected to reopen in early 2024. With the increased processing demands, the North Gateway MRF equipment will require investment. The Public Works Department is requesting $4 million in grant funding for these upgrades.
In preparation for the reopening of the 27th Avenue MRF, the Public Works Department is requesting $2 million in grant funding to retrofit an education tour room at the 27th Avenue MRF to enhance public outreach and student education with the recycling sorting process. The future tour room will provide an educational opportunity for neighboring Phoenix schools significantly increasing accessibility to the schools.
The Resource Innovation Campus (RIC) is the City’s regional circular economy hub with approximately 40 acres of lease-ready land for innovators with market-ready technologies and manufacturing processes that reuse or repurpose waste materials. To support economic development projects at the RIC, water, sewer and electrical connections are needed for the lease-ready land. The Public Works Department is requesting $4 million in grant funding to construct utility infrastructure at the RIC.
The Public Works Department is working to advance the City’s circular economy initiatives and waste diversion goals with the implementation of these projects with grant funding assistance. The Public Works Department is requesting authorization to submit applications for the Environmental Protection Agency’s Solid Waste Infrastructure for Recycling and Consumer Recycling Education and Outreach grant opportunities. If awarded, funding will support the equipment upgrades at the North Gateway MRF, retrofit of the 27th Avenue MRF education room, and development of the RIC.
The Solid Waste Infrastructure for Recycling and Consumer Recycling Education and Outreach grants submittal deadline is Feb. 15, 2023.
Financial Impact
The estimated total cost for the projects is approximately $10 million. The maximum federal participation rate is 100 percent with a minimum local match of 0 percent of the total eligible project cost. If awarded, the federal match would not exceed $10 million (100 percent).
The Public Works Department is requesting grant funds up to $10 million. If the grant funds are awarded in full, the City’s cost share is estimated at $1.75 million.
Funding for the local match is available in the Public Works Department’s Capital Improvement Program budget. Potential grant funding received is available through the Federal Bipartisan Infrastructure Law, from the Environmental Protection Agency through the Federal Fiscal Year 2022-23 Solid Waste Infrastructure for Recycling Grant and Consumer Recycling Education and Outreach Grant opportunities.
Location
Resource Innovation Campus - 3060 S. 27th Ave.
27th Avenue Materials Recovery Facility - 3060 S. 27th Ave.
North Gateway Materials Recovery Facility- 30205 N. Black Canyon Highway
Council Districts: 2 and 7
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Karen Peters, and the Public Works Department.