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Menlo Park council gives staff flexibility to spend $4.5 million electrification grant, debates Belle Haven priority
Summary
Staff said the city must spend the first half of a $4.5 million California Energy Commission grant by March 2026; councilors broadly supported options to expand eligibility and offer rebates while split over referral fees and ebike incentives, and directed staff to prioritize Belhaven residents where possible but to keep flexibility to avoid leaving funds unspent.
City staff told the council Menlo Park has $4.5 million from the California Energy Commission to accelerate home electrification and must spend the first half of the funds by March 2026 to invoice for the second tranche.
"Through the California Energy Commission, the state appropriated $4,500,000 to the city with the first half of those grant funds needing to be spent by March 2026," sustainability manager Rachel Wander said. She said staff has scheduled 86 home assessments (58 completed), 38 signed participation agreements, and 17 completed upgrades; at the current pace an estimated $680,000 of the first half would remain unspent by March.
Wander presented seven enhancements to increase uptake: expand eligibility citywide (up to 120% AMI); match Peninsula Clean Energy (PCE) rebates for heat‑pump equipment; offer transportation electrification rebates (e‑bikes, EVs); offer solar and battery with electrification upgrades; bolster rental electrification bundles with community partners; increase outreach via community‑based organizations; and develop a referral bonus program (up to $250 in 2025, rising to $1,000 in 2026).
Public commenters stressed trust and local partnerships. Charles Chapa urged presenting solar, battery and electrification as a combined resilience package and suggested local installer and training partnerships. Larry Moody of JobTrain supported CBO involvement and the resiliency‑hub model.
Council discussion centered on two tensions: keeping the original intent to prioritize Belle Haven (an underinvested neighborhood identified in the grant) versus expanding citywide to ensure the city does not forfeit the second tranche of funds. Several council members favored allowing staff to reallocate funds between program elements to meet invoice thresholds; staff said there is administrative flexibility and estimated the invoicing threshold is roughly $100,000 of remaining first‑half funds.
Some council members expressed reservations about paying finder/referral fees and about incentivizing certain classes of e‑bikes for youth; others supported referral bonuses as an organic recruitment method. Council members asked staff to prioritize Belle Haven residents when possible while enabling staff to pursue citywide options if necessary to spend funds and secure the second half.
Next steps: staff said it has sufficient direction to proceed with a flexible approach and will pursue the most administratively feasible and effective mix of program enhancements before March 2026; staff will return with implementation details and any contract amendments.
