REPORT TO COUNCIL
SUBJECT
Title
Action on the Bay Area Quality Management District Grant Agreement for Lithium-Ion Battery Energy Storage System Demonstration Project and Related Budget Amendment
Report
BACKGROUND
The Bay Area Air Quality Management District's (BAAQMD) Climate Protection Grant Program prioritizes projects that make progress towards achieving BAAQMD's 2030 and 2050 greenhouse gas (GHG) reduction targets. The Grant Program seeks to accelerate the implementation of the BAAQMD's Clean Air Plan and local climate protection efforts and is consistent with the GHG reduction targets adopted by the City of Santa Clara's Climate Action Plan and with the State of California's GHG and renewable energy goals. The BAAQMD Clean Air Plan lays the groundwork for a long-term effort to reduce Bay Area GHG emissions 40 percent below 1990 levels by 2030 and 80 percent below 1990 levels by 2050.
Silicon Valley Power (SVP) applied for grant funding under the BAAQMD 2018 Climate Protection Program on May 11, 2018. The grant is open only to public agencies within BAAQMD's jurisdiction and is aimed to foster innovative strategies that reduce GHGs over the long-term. The Grant Program funds activities in two categories: 1) Reducing GHGs from Existing Buildings and 2) Fostering Innovative Strategies with Long-Term Impacts in Reducing GHG Emissions.
On June 18, 2018, the City was officially awarded a grant for $300,000 with a two-year timeline to implement a behind-the-meter lithium-ion battery storage pilot project. To fulfill the grant requirements, SVP would partner with a battery equipment manufacturer and a data center to pilot a demonstration project.
On November 29, 2018, the Council adopted Silicon Valley Power's 2018 Integrated Resource Plan (IRP). The pilot project supports the goals of the IRP to consider the integration of technologically viable and cost-effective energy storage technologies, explores battery storage technology as part of SVP's procuremen...
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