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Council weighs microgrid grant opportunity; staff to return with details
Summary
Council discussed Clean Coalition’s preliminary Microgrid Incentive Program (SB 1339) application for a community microgrid serving City Hall, police and the community center. Council expressed interest in resilience benefits but requested additional analysis on costs, siting, impact on existing solar/ESCO plans and safety before committing to upfront fees.
Council held an extended study‑session discussion about applying for the CPUC’s Microgrid Incentive Program (MIP), a state initiative established by Senate Bill 1339 to fund front‑of‑meter community microgrids.
Senior Management Analyst Jessica Feuer outlined eligibility criteria and said the city meets several: the proposed Civic Center boundary includes at least three critical facilities (Police Department, City Hall, Community Center) and the city is in a disadvantaged community and an earthquake‑vulnerable area. Feuer said MB5’s investment‑grade auditor concluded one battery energy storage (BES) would sustain peak‑month operations roughly 18 hours, while two BES units could reach about 36 hours; meeting the MIP’s 24‑hour resiliency threshold therefore likely requires two BES units and significant additional solar area.
Craig Lewis of the Clean Coalition, who had submitted a preliminary application to secure a resilience consultation with Southern California Edison, told council the project is eligible and that the program pays an application‑development grant (about $25,000) that typically covers the consulting fee; the Clean Coalition requested a $15,000 upfront carry cost pending reimbursement.
Councilmembers raised technical and fiscal questions: potential conflict with the city’s Naresco solar/ESCO work, siting and parking impacts for BES units (staff estimated equipment might need 6–8 parking spaces), generator redundancy given existing diesel generators, long‑term lease terms for third‑party operators, and battery‑storage safety and fire risk. Former fire marshal James Carver asked council to consult OCFA and reviewed testing and code considerations for lithium battery systems.
Several councilmembers recommended more analysis and suggested bringing the item back within the next two meetings with clearer answers on (1) interactions with the Naresco project and NEM rules, (2) space and parking constraints, (3) safety/fire‑protection measures and (4) the financial terms of any lease or benefit to the city. Council did not commit to implementation at this meeting; staff was directed to return with additional analysis and to pursue the resilience consultation with SCE if that step preserves the city’s funding opportunity.
