Title
Authorization to Apply, Accept, Disburse Funds and Enter into Agreements for the Climate Pollution Reduction Grant Program Phase II Competitive Implementation Grant (Ordinance S-50527)
Description
Request approval for the City Manager, or his designee, to serve as the lead applicant and submit a grant application on behalf of regional coalition members from eligible entities in the Phoenix-Mesa-Chandler Metropolitan Statistical Area (MSA) to develop and implement climate pollution reduction strategies. Phase II implementation funds for programs, policies, measures, and projects can be up to a $500 million award. Further request the City Manager to execute all contracts and Memorandums of Agreement (MOA), if awarded. Additionally, request to authorize the City Treasurer to accept, and the City Controller to disburse, grant funds.
Report
Summary
The Climate Pollution Reduction Grant (GPRG) program, through the 2022 Inflation Reduction Act, provides investments to support states, municipalities, air pollution control agencies, tribes, and groups to develop and implement climate pollution reduction strategies. The two-staged grant program offers funding of $250 million for non-competitive planning grants (Phase I) and $4.6 billion for competitive implementation grants (Phase II).
The Phoenix-Mesa-Chandler Metropolitan Statistical Area (MSA) is receiving $1 million under Phase I of this grant to develop a regional Priority Climate Action Plan (PCAP) to reduce harmful air pollution. Maricopa Association of Governments (MAG) is the lead agency for the Phase I Planning Level Grant with oversight and management of funds to develop a regional PCAP by March 1, 2024.
The PCAP (Phase I) is a pre-requisite for competing in Phase II of the CPRG program, which will competitively award $4.6 billion for implementation. Eligible applicants include coalitions formed by eligible entities in the MSA. Phase II implementation funds for programs, policies, measures, and projects can be up to a $500 million award. The implementation grant items must be in the final PCAP due to EPA March 1, 2024. Below are examples of types of projects that may be funded:
- Electrification;
- Weatherization;
- Green/organic waste diversion;
- Expansion of existing programs at the County (residential / commercial lawn and garden equipment to electric, fireplace retrofit, fire pit replacement); and
- Mass transit.
Office of Environmental Programs staff is collaborating regionally to apply for Phase II funding. Eligible cities and towns have shown significant interest in participating in a coalition to execute programs broadly in the region, which may increase chance of award. Office of Environmental Programs staff is requesting to be the lead applicant for Phase II implementation funding as Maricopa County and MAG cannot serve as the lead applicant, and Phoenix is the only other entity in the region eligible to apply.
The Phase II Competitive Implementation grant deadline is April 1, 2024. Award announcements will be made before the end of 2024.
Contract Term
The grant term is for up to four years.
Financial Impact
The program is funded through the 2022 Inflation Reduction Act Grant. There is no financial impact to the City.
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Office of Environmental Programs.