TO: Board of Supervisors
FROM: Ryan J. Alsop, County Executive Officer
REPORT BY: Daniel Sanchez, Senior Management Analyst
SUBJECT: Resolution for Diesel Emission Reduction Act National Grants
RECOMMENDATION
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Adopt a Resolution and approve a Budget Amendment accepting the Federal Environmental Protection Agency, 2022-23 Diesel Emission Reduction Act National Grant Funding, to be used towards reducing pollutants from the Wine Train. (Fiscal Impact: $3,564,000 Revenue and Expense; General Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The County Executive Office applied for and received the United States Environmental Protection Agency (EPA), 2022-23 Diesel Emission Reduction Act National Grant. This grant provides funds to replace seven unregulated locomotives owned and operated by the Napa Valley Railroad (Wine Train). The Wine Train’s fleet of unregulated locomotives are a significant source of pollutants. The proposed project will eliminate the diesel switch locomotives and replace them with three EPA certified Tier 4 switch locomotives.
The project will remove 12.88 tons of Nitrogen oxides (NOx), and 0.44 tons of PM emissions per year from the surrounding community. The project will have immediate and on-going improvements to regional air quality and human health, especially along the Wine Train corridor.
Napa County is the pass-through entity for the grant. The subrecipient of the grant will be the Wine Train. County staff will support certain administrative and auditing functions. The locomotives will be owned and operated by the Wine Train. The EPA grant funding amount is $3,564,000 and the total project budget is $8,967,200. Napa Valley Railroad is responsible for the funding difference and there are no County monies contributed to the project. The project period is October 1, 2024 through December 31, 2026.
Requested Action:
1. Adopt a Resolution accepting the Federal Environmental Protection Agency, 2022-23 Diesel Emission Reduction Act National Grant Funding.
2. Approve a Budget Amendment recognizing revenue of $3,564,000 in 10500-00 CEO Non-Departmental and $3,564,000 appropriation for community grants to the subrecipient for reimbursement for eligible expenses.
3. Authorize the County Executive Officer or his designee to negotiate and execute a subaward agreement with the Napa Valley Railroad, the operator of the Wine Train, and to transfer grant funds to the Napa Valley Railroad for the project.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
CEO Non-Departmental 10500-00 |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The grant will replace heavily emitting locomotives with locomotives that emit significantly less pollutants. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Not applicable. |
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Consequences if not approved: |
The unregulated locomotives will continue to operate and emit significant pollutants. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is exempt from CEQA under the “common sense exemption” in CEQA Guidelines section 15061(b)(3) because the project will improve the environment by removing decades-old, unregulated locomotive engines from service and replacing them with engines that generate substantially less pollutants.