HomeMy WebLinkAbout _ 4.5(b)--Authorize GRIP Grant Application Submittal to Dept. of Energy � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: Apri12,2024 FROM: Nick Zettel, Director of
ITEIVI NO. 4.5(b) Redding Electric I7tility
***APPROVED BY***
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nzettel@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.5(b)--Authorize the Submittal of Grant Application to Department of Energy
Recommendation
Authorize the City of Redding Electric Utility Director, or his designee, to submit a Grid
Resilience and Innovation Partnerships Grant Program application for approximately$35 million
to implement REUs Grid Modernization Program to modernize and enhance the distribution
system's reliability and resiliency.
Fiscal Impact
There is no fiscal impact associated with submitting the grant application. Additionally, there is
no penalty for opting out of the grant program at a later date.
The total budget for the Grid Modernization Program is anticipated to be approxima�ely
$46,665,500. Staff anticipates applying for �35 million through the Grid Resilience and
Innovation Partnerships (GRIP) Grant Program that requires a 33 percent match ($11.55
million). In order to fulfill the budget, staff projects that match in the amount of $11,665,500,
can be met by completing projects included in Redding Electric Utility's (REU) five-year plan
and the Community Benefits Plan and can be paid for with grant proceeds. Therefore, the Grid
1Vlodernization Program would be a net financial benefit to REU by reducing future ratepayer-
funded capital investment and associated rate pressures.
Should REU be awarded the grant, staff will return to the City Council (Council) with complete
project details and resolutions for the Council's consideration.
Alte�native Action
The Council may choose not to apply for the funds or provide alternative direction to staff.
Report to Redding City Council March 27, ZOZ4
Re: 4S(b)--Authorize GRIP GrantApplication Submittal to Dept. of Energy Page 2
Background/Analysis
The Department of Energy's (DOE) Grid Deployment Office (GDO) administers the Grid
Resilience and Innovation Partnerships (GRIP) Grant Program, which aims to enhance grid
flexibility and improve the resilience of the power system against growing threats of extreme
weather and climate change.
Of the three eligible topic areas, REU selected Topic Area 1: G�rid Resilience Utility and Industry
Grants (Resiliency Crrant). The Resiliency Grant supports the following activities:
• Modernize the e]ectric grid to reduce impacts due to extreme weather and natural
disasters.
• Funds comprehensive transformational transmission and distribution technology
solutions that will mitigate multiple hazards across a region or within a community,
including wildfires, floods, hurricanes, extreme heat, extreme cold, storms, and any other
event that can disrupt the power system.
• Provides grants to electric grid operators, electricity storage operators, electricity
generators, transmission owners or operators, distribution providers, and fuel suppliers.
As part of the pre-application process, REU was required to submit a Concept Paper to the DOE
by J�anuary 12, 2024—the concept paper is attached. The DOE reviews the concept papers, either
encouraging the applicant to proceed with a full application or discouraging a full one. Within
the concept paper, REU proposed initiatives to help enhance its distribution system's reliability
and resiliency by strategically transforming its infrastructure from the 1990s era design to a
modernized framework.
REU's Grid Modernization Program includes the following projects, which were identified in the
2021-2026 Strategic Plan:
1. Line Capacity Upgrades
a. Upgrade line capacity to accommodate increased adoption of electrification,
integration of distributed energy resources, and system-wide load growth.
2. Enhance Protection Settings
a. Replace a11 12kV feeder breaker relays and develop individual feeder settings to
enhance protection for extreme weather events.
3. Replace Aging Underground Cables
a. Replace 150 miles of aging underground cable identified as being at risk for
failure to decrease the likelihood of outages, improving reliability and restoration times.
4. Modernize Construction Standards
a. Reform Construction Standards to ensure that engineering, design, drafting,
supply ehain, maintenance inspectors, and line crews have a common understanding of
materials and methods used to construct our system,
On February 29, 2024, REU received notification from the DOE encouraging staff to proceed
with a full application, indicating that the program and projects outlined in the GRIP Grant
Report to Redding City Council March 27, ZOZ4
Re: 4S(b)--Authorize GRIP GrantApplication Submittal to Dept. of Energy Page 3
Concept Paper meet the gualifications of the funding opportunity. The Notification Letter is
attached.
The full grant application is evaluated based on several criteria, including technical expertise,
project management and feasibility, and community benefit. To meet the required grant
application requirements, REU must include a Community Benefits Plan demonstrating how the
projects will ensure that federal investments advance four goals: 1) community and labor
engagement; 2) investing in job quality and workforce continuity; 3) advancing diversity, equity,
inclusion, and accessibility (DEIA); and 4) contributing to the Justice40 Initiative's goal of
delivering 40% of the overall benefits to disadvantaged communities.
REU's Community Benefits Plan entails establishing a stakeholder engagement group
comprising community members who may be affected by the projects. This group will help
identify priority areas, potential adverse impacts, and strategies for mitigation during the pre-
construction phases. Additionally, REU intends to collaborate with other City departments and
Community-Based Organizations to modernize policies and enhance opportunities for job access
and training, with a focus on underrepresented communities. The Community Benefits Plan wi11
be funded by grant proceeds. An overview of the Community Benefits P1an is attached.
The complete GRIP Grant application deadline is April 17, 2024. REU has partnered with
iParametrics, a grant-writing consultancy, to develop the comprehensive application. The DOE
anticipates issuing selection notifications to applicants during the Summer or Fall of 2024.
If funding is awarded, staff will return to the Council seeking approval of the proposed projects
outlined in the Grid Modernization Program. Upon receiving Council approval, staff wi11 begin
executing the projects, documenting project milestones, managing project budgets, and providing
regular updates to the DOE. Progress payments will be disbursed to successful applicants based
on reported project advancements and the implementation of Community Benefits Plans.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further
action is required.
Council Priority/City Manager Goals
• Restructuring Government for the 21st Century — "Be relevant and proactive to the
opportunities and challenges of today's residents and workforce. Anticipate the future to
make better decisions today,"
Attachments
^FOA 3195 Concept Paper Form
^Notification Letter
Community Benefit Program Overview
Grid Resilience and Innovation Partnerships Program (GRIP) s
FOA 3195 ' �
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Concept Paper Form _ � � �
The following form is to be completely fitled out and submitted on https://infrastructure-exchange.energy.gov/.
Ensure that the form is saved using the provided button on the botE-om of the form. This will ensure that your file is
properly submitted. lf the button is not used,submission of application cannot be guaranteed.
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Applicant Name: City of Redding
Project Partner(s): TBD
Project Name: Redding Electric Utility Grid Modernization Program
Project�ocation(s}:
AL Applicable GRIP Topic Area: Topic Area 1:Grid Resilience
If selecting AK Combined
AZ Transmission/Distribution/Combined:
multiple items, AR Applicant Cost Share: $ 11,665,500.00
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� ```�� � '� '� �`�� � Federal Funds Re uested: $35,000,000.00
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c(icking. �p Antici ated Tota) Pro'ect Bud et:
p � g $46,665,500.00
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Brief description of the project, incfuding outcomes that would result from the successful completion of the project that align
with the strategic goals and objectives of the GRIP program and the applicable GRIP Topic Area. 2,000 character limit.
The C'ity c�f Redding's(City)Electric D�partrnent,operating',as Redding Electric Utikity(REU),praposes initiati�res#a enhance its
distributic�n system's reliabil;i#y and resilier�cy by strategicafly transforming its infrastructure from the 199f�s tc�a rnod�rnized
framework.REU's Grid Mc�dernizatic�n Program includes prajects identified in RE{1's 2�21-2026 Strategic Plan.
1. Line Canacitv Un�ratles
Brief description of the impact of DOE funding on the project.2,000 character limit.
According to the Clirnate and Econamic lustice Screening Taol,Redding is located either wholly or p�rtially within 13 census tr�ct
are�s designated as disadvantaged cammunities. Nearfy 38%af all rneters located wittrin th�City(irnits;(17,763 out of the total
46,744 custom�r meters serued by REkJj r�side in those areas.As a uertically integrated utility with generation,transrnissian,�nd
distribution,REU r�cognizes the irnpartance of the projects identified in its Grid Modernization Program.However,due to rate
im�aacts and a firnited workforce.these nroieets ha�e either been tleterretl.scaled down in scat�e.or structured in ohased
Select the type(s)of technology(ies): Multiple
List the primary technologies and/or tools that will be deployed in the project.2,000 character limit.
1.Line Capacity Upgrades
a.Carnpfete the impfernentation of saftware syst�ms used'for cap�city studies(e:g. Milsoft WindMil), irrrprove the accuracy o€GIS, '
reduce time to pracess intercc�nnection req;uests for clean ienergY,and enhance power quality. '
b. De�relc�p an Integrated C7istribution Plan(I[�P)#o identify;high-pricarity areas when preparing for future grid needs.
c. Cmr�lement new c3istribution canacitars ar�d assaciated con#rallers throu�hout t'he distribution sustem:focusine on hi�h-nrioritv
If the project will be deploying hardware, describe the role and impact of hardware deployment as part of the proposed project
scope and identify any elements of this deployment that represent a significant innovation for the industry and/or project. Enter
"N/A" if no hardware will be deployed.2,000 character limit.
1. Lin�Capacity Upgrades
a. REU"s capacitar controller systern is a pager-ba$ed,old techr�ofogy that is nc�Ic�nger supparted by the'manufacturer an�k requires '
increasingly costly maintenance.The capacitors were initiafly placed and sized based on REU's distribution system in the 1990s;This'
project proposes to instalf appropriately-sized capacitors thraughout th�REU sys#em and new capacitor cantralfers c�pable of
beine cc�ntrolfed bv SCAdA that utifize new carnrnu'nicatidn technt�lo�v.
If the project will be deploying software,describe the role and impact of software deployment as part of the proposed project
scope and identify any elements of this deployment that represent a significant innovation for the industry and/or the project.
Enter"N/A"if no software will be deployed.2,000 character limit.
1. Line Capacity Upgrades
a.Finalize the irnplem�ntation�f Milsc�ft WindMii far line capacity upgrades and feeder optimiz�tion, plus select and implement
new capacitar cor�troller software. '
b.Impact:Allows distribution operator�ta cc�ntrol capacitors remotely and adjust settings that better support evc�fving;contlitions
imaactin�the nower�rid.
If the project will include development of a new business/regulatory/financing approach,describe the approach and the
potential for and path to replicability or broader adoption.2,000 character limit.
Not applicabl�.This praject dcres not develap a new businessf regukatory/financing approach.
Describe the readiness,viability,and expected timing of the project(include the impact of DOE funding in the response).
2,000 character limit.
1.Line Capacity Upgrades
a.To prepare for this project, REU would r�eed to engage a+consuftant ta rnigrate GIS to Milsc�ft WindMil'and establish a new
�endor for capacitor;contrcrflers and t�ehnalogy.With adequate funding,staff cauid contract with the necessary�endars and begin '
this project in July 2024. It would take approxima#ely four{4}years to carnplete the praject,including scaping,scrftware migratian, ',
anrl installatir�n af cae��citars.
Identify risks and challenges(e.g.technical, labor,financial,market,environmental, regulatory,security)to project success,and
outline mitigation strategies for each risk.2,000 character limit.
1.Staffing
a.In recent years,REU has experienced difficulties with recruitment and retention,leading to lengthy�raeancies for line technicians '
who construct and maintain the REIJ distrik�ution system.
b.Mitigation:REU engaged a fine contractor to provide ane erew and maintains the ability to add fine contract crews as need�d to '
accc�rnnlish work in the future,To further alfevia#e t�elavs.REU is in the r�rocess t�f contractin�with a reeruiter t�seek aualified
Briefly describe the Project Management Team and any key personnel and project partners, including vendors and suppliers(if
identified; if not yet identified,address how the project will secure vendors/suppliers). Indicate whether the Team has the
required skills,any prior applicable experience, prior projects with partners,and access to equipment/facilities to successfully
execute the proposed project. If those are not met,explain how the Team will obtain knowledge/access for successful
execution.2,000 character limit.
R�U's project t�am will cc�nsist of exeeuti�re tearn members to monitar progress,secure funds,establish`budgets,support
administrative duties,and cornmunicate progress with the'City Cauncil and City Manager.
� E(ectric Utility Dire�tor, Nicholas Zett�l
•Assistant Directc�r-Transmissic�n&Distributian(T&D}Assets Qivisinn, Nathan Aronsc�n
+Assistant�irectar-Resources[?ivision.Josenh Bc�wers
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How will this project reduce innovative technology risk,achieve further deployment at-scale,and lead to additional private
sector investments? 2,000 character limit.
The grid mc�dernization projec#s wilf enhance the resilience of REll's distribution system,thus reducing the risk as innc�Wative
technologies are increasingly instalfed on the grid.This includes increased;photov�ltaic�nd energy storage systern installatians as
the building cades in California continue ta increase requirements.Furthermore,REU anticip�tes custamers to decarbc�nize their
vehicles and appliances a�regulations and legislation make adapting transporta#ian and building electrifiicati�n technolagies
incre�sinElW mc�re ct�st-effective.
Describe how the project supports State, local,Tribal,community and regional resilience, in reducing the likelihood and
consequences of disruptive events,decarbonization,or other energy strategies and plans.2,000 character limit.
Reddi'ng is lacated in Shasta Cnunty'in Nrrrthern California and 160 miles narth t�f Sacramentc�.With over 61 square t�iles within its '
boundaries,the City`s 2(7�2 population was'approximately'93,611(U5 Census Bureau},making it;t(�e Cargest city'in Shasta County.
The City of Redding(City)is gouerned by the Redding City�c�uncil,which consists'of five el�cted community members. REU seruices
aver 46,t��fl rneters,ineluding hea[thcare,emergency operations,federal and focal goWernrnents,and flther essential service
industries throu�haut the surroundin�area,
What will be the grid-benefitting outcomes to be delivered by the project(e.g. number of customers impacted,unlocked clean
energy generation, improvement in reliability metrics). �ist 1-3 outcomes maximum.2,000 character limit.
The grid-benefitting outcomes d�li�ered by the prc�ject incl'tude the following:
1.There are ov�r 46,n00 meters in REU's service#erritory,�f which 38°!o are located in disadvantaged areas. FurChermare,39.4/�of '
customers enrolled Cn the medicaC alert pragram and 52.b1 of customers enrolled in#he residential energy discc�unt program r�side '
in a bAC c�nsus tracf_ In coNabaratic�n with the GMUUG. REU seeks to inte�rate diverse nersc�e�tives and e�rior'rtize areas with the
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Demonstrate how this Community Benefits Plan will address community and labor engagement,and how feedback from specific
and relevant community stakeholders will be incorporated into the Community Benefits Plan.4,000 character limit.
The prapt�sed Redding Electric U#ifity Grid Madernizatian Program(Program}represents a camprehensive initiativ�designed to
acti�ely involve City of Redding(City) Dep�rtrnents',and the cornrnunity in dev�loping�nd irnpkernenting an�dvanced eleetrical'
system.This Prc�gram is strategic�lly designed to address wildfire rnitigation,electrification readiness,and�nhanced grid reliability. '
Key eomponents of the Program inelude the development of an In#egrated f7istributic�n Plan,replacement a#undergrc�und eables,
capacity assessrnents#or pawer lines,updates tc�constructit�n stand�rds,and the enhancement o#system prdtectic�n settings.
Emphasizing workforce developrner�t,the Prcrgrarn airns to ensure that commurrities have equi#able access to reliable,affordable, '
and sustainable energy.7o inform these effar�s, REU will establish!a Grid Madernization Working Group(GMWG�tfl provide
valuab}e insights and serve as a resource for futurei related activities,building upon the City's existing initiatives.
Representatives frt�m the fc�llowing groups wiCl be invit�d to participate in the GMWG: '
• City of Redding Departments
• Lacal Tribal�i Ga�ernrnents
• Regional Transportation Agencies"
• Disadvantaged and Low-Income Cornmun;ity Based Organizations
• Business Sector,lncluding Minarity and Ur�derrepresented Owners
� Educational Institutitins Including Secondary,College,and T�chn'rcal Schools
i �abor Organizations�nd �ocal Trade Associations
Provide expected number of jobs or workforce development opportunities that the project will create. Describe how these
positions are the result of community engagement or agreement. Explain how your project will generate quality jobs and
that workforce development opportunities provided are relevant to impacted communities.4,000 character limit.
The Program is antic'rpated to generate bath direct and indirect ernpiayment opportunities in ane crf Northern California's most
economically'distressed areas,lob estimates wil(be project-speci#ic,with'REU strategically planning ta implement the following
initiatives aimed at fastering high-quality job�and supporting future growth:
• €7euelop anrapprenticeship program for�ine Tech+nicians to enroll focal students Quer the next several�ear�. ��
•Continue to ofFer se�reral permanen#,fuli#ime ernployees at R�U ta manage these and future projects;far grid irnpro�r�ments and
upgrades.
� t�evelflp and provide robust training programs to increa�e industry knowledge€or job candida#es with lit#le ta no experience in
the energy industry. ���,
• Utilize additional eontracted line crew(s)to support infr�struc�ure improvernents for construction prc�jects over the next four(4) ;
yea rs.
As el�ctrifieation adaption increases, REU strives ta create'and maintain quality jc�bs for the City's pubiic'�nd private industries:
Actiuifies include:
�Conducting cc�rnpensation studies ta ensure wages and benefits for in-house construction,design,and engineering job wages are '
adequate for'recruiting new and retaining current employees as part of the 2021-2026 Strategic Plan goal#9, Enhance Employee
E7evelopment,Attraction,and Retentic�n.
• E�evelt�ping'standards to devefap quality training mat�rials and irnprc�We job�uality for multi�rle jab classifications.
Engagernent with labor organizations will be critical for e�raluating'praposed canstructian,design,and engineering standards. '
identify Community Benefits Plan elements that will support Diversity, Equity Inclusion,and Accessibility,including methods
to ensure accountability to specific goals throughout the project.4,000 character limit.
REU strives to support diWersity,equity,inclusion,and aceessibifity when devefoping prajects and prograims that benefit the
comrnunity.The City's most recent draft crf the General Plan specifically�ddresses prioritizing health,wellness,en�iranment�l
jusCice,ar�d c�veralf equitable treatment when developing policies.Mare specificafly,the Cify stri�es to reduce expflsure to air
pollution and other clirnate change-related impacts that typieally affect underserv�d ar�as af the cc�mmunity disproportionately.
For every project,REU s#aff will assess and offer recammendations to the GMWG,emphasizing areas of the grid tha#are
disprapart"rnn�tefy impacted and where pric�ritized efforts should be directed.
While Redding does not boast the mast diverse populatian,it is a low-incorne camrnunity based on Califarnia`s Priarity Papufations
Map and a federalCy recogrrized DAG,Other key demagraphics compared ta#he US per th'�2022 US Census include:
• Pc��r�rty:14.1°la�f the population�11.5°10 in the US)
•Ueterans:6.7°10 of the perpulation(5.1%in t�re US)'
* Dis�bled:11.110 ofthe pc�pulation�i(8.91 in the US)
The City is uniquely positioned tt�develdp robust DE1A pt�Cicies and principles tai(ared t+�Redding's needs as it becnmes mnre
di�erse,utilizing besti practices estab}ished i'r�the industry and ensuring equitable;oppc�rtuni#ies are avail!able far a(1 citizens.
Natably,the Trikral natiarr of Redding Rancheria(Ra'ncheria)is a dAC loc�ted on the City's southern bc�rder.The Redding Rancheria
Utility Corporation(RRUCb)entered into a retaif eCectric service agreement with REU in June 201{�to provide safe,reliable,and
cost-effective power'(incfuding federal hydrapower generation frr�m the Gentral Valley Proj�ct)to Tribal members and busin�ss
Identify how this project will contribute to the Justice40 Initiative goal that 40%of overall benefits flow to disadvantaged
communities.4,000 character limit.
REU recognizes the importance af the Justiee4U Initiativ�goal to ensure that 40%'of c�verall bene#its flouu to t3ACs.Aceording to the '
Ciimate and�conamic Justice Screening Taai,the City is Ic�cated either wholly or partiaCly within 13 designated DAC census trac#
areas;which equates tt�nearly 38°l of inetered customers;Typically,disadvant�ged and faw-incame customers live in the oldest
areas af town,which are at a higher risk for potential pawer failure.Far exampfe,approximately 50 miles or 33°10 of the aging cable
identi#ied as needing replacement are located in DAC census tracts in the City.REU plans to work with the�MW�ta recommend
priaritizing projec�s in affect�d cens'us tracts ta reduce futur�burdens Co disadvantaged custamers.
With REU's competitive efectric ra#es,customers expect ta realize energy'bill savings when transitioning#ram natural gas or
prap�ne appliances to electric technolc�gi�s. However,the'curren#distributic�n grid lacks the capacity tt�accomrnc�date anticipated '
laad growth citywide.Grid mc�dernizatian is crucial for REU ta ready itself+for future building and transportation electrification
acrt�ss all areas c�f the City.Prioritizing enhancements to line e�pac'rty arrd;replacing aging undergr�un�l eables in C3ACs enhances
reliability by minimizing outage dur�tit�ns firorn potential fu#ure failures.These upgrades aCsb faeilitate increased access to
electrification technologies,���reducing reliance on ftissil fue�s for bath residential and transportati��on needs.
REU striues to ensure equitable access to building and transpartation electrificati�n technologies.Current customer programs are
focused an removing or reducing barriers to electri€ication for low-incorne and disadvantaged eustomers who wish to electrify;
CRIPyfunded grid modernization projects will expand access to cleaner technrslogies and rrtobility options for DAC members, ;
allowing R�U to pro�ide electrificatic�n prc�grams that reduce or eliminate costs#o affected customers.
Ensure that the form has been fuliy and correctly compJeted.
Once you have verified that all the information is accurate click the button below. You will not be able to make
changes to this form afterwards.
Submit the compteted form to https://infrastructure-exchange.energy.gov/.
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���'����.�.����rt�n���a r w� NATIONAL
NATIONAL ENERGY TECHNOI.OGY LABORATORY N
Albany,OR•Morgantown,WV•Pittsburgh,PA �� LABORA ORYY
February 29, 2024
SENT VIA ELECTRONIC MAIL
City of Redding
Kamryn Hutson
khutson@cityofredding.org
SUBJECT: Funding Opportunity Announcement (FOA} no. DE-FOA-0003195,titled "Bipartisan Infrastructure
Law(BI�)—Grid Resilience and Innovation Partnerships(GRIP)"—Concept Paper Notification
Concept Paper Control Number: 3195-1799
Dear Kamryn Hutson:
Thank you for submitting a Concept Paper under Topic Area 1 in response to the subject FOA.The Concept
Paper for proposed project titled "Redding Electric Utility"was carefully reviewed in accordance with the
evaluation criteria in the FOA.
Based on the results of the Concept Paper review,your organization is hereby�r����r� ����s��rr�������1
� 1������� in accordance with the instructions and requirements contained within the FOA by the due
date/time specified on the FOA cover page. Please be advised that receiving a letter of encouragement does
not guarantee that an application will be selected for negotiations leading to award.
If the Department of Energy(DOE) has identified potential area(s)for improvement based on the concept
paper merit review criteria identified in the FOA, it is marked with an "X" (see below). DOE will not provide
any additional feedback or guidance beyond what is provided below.
_ The Concept Paper did not propose or thoroughly describe how the proposed work, if successfully
accomplished, would clearly meet the objectives as stated in the FOA for the specific topic area.
_ The Concept Paper does not clearly describe how the proposed work aligns with and supports
State, local,Tribal, and/or regional resilience, decarbonization, or other energy strategies and plans.
_ The Concept Paper does not adequately identify risks(e.g.technical,financial, market,
environmental, regulatory) and challenges, including possible mitigation strategies,to project
success.
_ The Concept Paper has not adequately identified, including possible mitigation strategies,
technical, operational, and administrative risks to the security of the applicant's assets.
_ The Concept Paper has not adequately explained the impact of DOE funding.
_ The Concept Paper does not adequately propose strategies and accountability mechanisms to
ensure:
a. Meaningful community and labor engagement,
b. Qualityjobs and workforce development,
c. Support for Diversity, equity, inclusion, accessibility,
d. Supporting the goals of the Justice40 Initiative.
City of Redding Page 2 of 2 February 29,2024
_ The proposed project team does not appear to have adequate qualifications, experience,
capabilities, and other resources necessary to complete the proposed project.
_The applicant has not adequately provided an estimated total project cost, and/or characterized
the project's economic viability, and/or demonstrated that the project provides enhanced system
value and/or provides improved current and future system cost-effectiveness and delivers economic
benefit.
This letter comprises the sole debriefing the DOE will provide with regard to your Concept Paper.
Please also ensure you have carefully read the Registrations Requirements located in the FOA document.
There are several one-time actions that must be completed before submitting an application in response to
this FOA(e.g., register with the System for Award Management(SAM), obtain a Unique Entity Identifier(UEI)
number, etc.). It is vital that applicants address these items as soon as possible. Some may take several
weeks, and failure to complete them could interfere with an applicant's ability to apply to this FOA.
The DOE will conduct two webinars in the coming weeks:
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copy and paste the following link into your browser:
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Cc�r�c���a� F��per��°�i�v� �r���s�. To register for the webinar, please copy and paste the following link into
your browser: https:f[dcaeeu�reb�x.�c��nlw�blir�kfrc�ist�r/r���74d��d5��545�13f140b5�R�74b��f
• The purpose of these webinars is to discuss and emphasize FOA requirements within the FOA document
that applicants may need to focus on in the full application.Attendance is not mandatory and will not
positively or negatively impact the overall review of any applicant submissions. Questions will not be
taken as part of these webinars.
The DOE did not make an applicant eligibility determination as part of the concept paper review. Applicant
eligibility determinations will be considered at the full application stage of the FOA process. To be considered
for substantive evaluation, an applicant's submission must meet the criteria set forth in Section III.A of the FOA
(Eligible Applicants). If the full application does not meet the eligibility requirements, it will be considered
ineligible and removed from further evaluation.
The DOE recognizes the significant effort your organization expended to prepare a concept paper in response
to this FOA. On behalf of the DOE,the FOA team would like to express our appreciation for your interest in the
Grid Deployment Office and this FOA.
Sincerely,
DE-FOA-0003195 Team
Emai) CC:
naronson@cityofredding.org
�it�r c�f Redt�ing
Elec�tric�tility
Overview of GRIP Grant Community Benefiits
Pro ra m
The Department of Energy's (DOE) Grid Deployment Office (GDO} administers the Grid Resilience and
Innovation Partnerships (GRIPj Grant Program, which aims to enhance grid flexibility and improve the
resilience of the power system against growing threats of extreme weather and climate change. REU is
preparing a grant application for Topic Area 1: Grid Resilience Utility and Industry Grants (Resiliency Grant).
REU's Grant Application includes the following projects,which were identified in the 2021-2026 Strategic Plan:
1) Line Capacity Upgrades- Upgrades to REU's distribution grid's system and line capacity facilitate
electrification, integration of distributed energy resources, and system-wide load growth.
2) Enhance Protection Settings- REU aims to replace each of its 12kV feeder breaker relays and
develop individual feeder settings to enhance protection for extreme weather events.
3) Replace Aging Underground Cables- 150 miles of aging underground cable have been identified as
being at risk for failure. Replacing them with more robust cables decreases the likelihood of outages,
leading to improved reliability and restoration times.
4) Modernized Construction Standards- REU's Construction Standards are critical to ensuring that
engineering, design, drafting, supply chain, maintenance inspectors, and line crews have a common
understanding of materials and methods used to construct our system.
One of the important aspects of a competitive grant application is to develop a scope of work and
budget for a "Community Benefit Plan" (CBP).The CBP is worth 20%of the total scoring criteria and
includes four CBP elements.
1) Community and Labor Engagement- Meaningful engagement with community and labor partners
leading to formal agreements with accountability to affected stakeholders.
2) Investing in Quality Jobs-Create quality jobs to attract and retain skilled workers and ensure
workers have a voice on tne job over decisions that affect them.
3) Diversity, Equity, Inclusion,and Accessibility(DEIA)- Equitable access to wealth-building
opportunities (teaming, access to quality jobs, business and contracting opportunities, etc.).
4) Justice 40- Meet or exceed the objectives of the Justice40 initiative tnat 40%of the overall benefits
of certain federal investments flow to disadvantaged communities.
Both the DOE and our grant consultant, iParametrics, have emphasized the importance of a competitive
CBP. For example, in the 2023 round of funding, 72%of awarded respondents were responsive to all four of
the CBP Elements above. This document explains the current elements of REU's community benefits plan,
which is the basis of the design as Staff continues to finalize the grant application and budget.
R��J's C�r���r�it� ��r�efit Prc��r�r�
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REUs Proposed CBP is responsive to all four of the CBP elements in the following ways.
Comr��r�ity ar�d Labc�r Er����err�ee�t:
1) Labor Management Agreement- Upgrades to REU's distribution grid's system and line capacity
facilitate electrification, integration of distributed energy resources, and system-wide load growth. If
the bargaining units are willing to meet and confer, REU will commit to developing a Labor
Management Agreement to be implemented as a Side �etter to existing memorandums of
understanding.This agreement will document the collaborative initiatives that support the four CBP
elements. For example,the City may commit to improving the safety and skill training program and
provide 80 hours of safety and skilis training per year, include hourly employees on safety
committees, develop a pre-apprentice training scholarship for local, disadvantaged youth, commit
to prioritizing in-house labor over contract labor, maintain REU hourly wages 5%above prevailing
wage "Basic Hourly Rates" for the duration of the grant performance period for Apprentice Line
Technicians and Line Technicians, etc. The LMA will help ensure continuity of work in partnership
with the labor unions.
2) Community Advisory Group - The proposed infrastructure project adopts a "Community-Centric
Advisory Engagement" approach. This strategy is designed to foreground the importance of aligning
the project with community needs and values, ensuring the active involvement of local residents in
the decision-making process. By emphasizing transparent communication, inclusivity, and mutual
respect, we aim to create a collaborative environment where the project meets its technical and
logistical goals and significantly benefits the community. This approach ensures that the project
fosters positive, sustainable impacts, enhancing the well-being and satisfaction of all stakeholders
involved. The Advisory Group will comprise local organizations representing businesses,
disadvantaged customers, workforce training, environmental conservation, educational institutions,
health services, cultural and recreational groups, and local governance. This diversified composition
ensures a holistic representation of community interests, enabling the project to address various
concerns and opportunities,from economic development and environmental sustainability to cultural
enrichment and social welfare. Together, these organizations will play a pivotal role in guiding the
project to achieve outcomes that are not only successful in a technical sense but deeply rooted in the
community's aspirations and long-term well-being
Ir�vestir�� ir� C�u�lity Jok�s
1) Apprenticeship Program Development-The �abor-Management Agreements with the International
Brotherhood of Electrictrial Workers(IBEW)and the United Public Employees of California (UPEC)will
help demonstrate responsiveness to investing in qualityjobs.To further demonstrate responsiveness,
REU will finalize our IBEW apprentice programs and hire two apprentices,with a commitment that at
least two full-time equivalents (FTEs) of apprentices or pre-apprentices be used on this project.
Furthermore, REU will expand the Registered apprentice programs to include Line Clearance Arborist
and Substation Electrical Technician Apprentice Programs.
2) Commitment to "Good Jobs Principles—"The Departments of Commerce and Labor have partnered
to identify what comprises a good job. These eight principles create a framework for workers,
businesses, labor unions, advocates, researchers, state and local governments, and federal agencies
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for a shared vision of job quality.1" The City currently models most of these principles, which will be
highlighted in the grant application. However,there are some areas where REU will strive to integrate
the Good Jobs Principles.These include the following:
a. Utilized skills-based testing in recruitment: REU will integrate skills-based testing for
recruitment of hiring, minimizing unequal treatment or utilization of selection criteria that
are unrelated to job performance.
b. Competitive Salaries: REU will propose that the City commit to maintaining hourly wages
for Line Technician and Apprentice Line Technicians at least 5% higher than the prevailing
wage base rate for the equivalent classifications. Current wages are 12%-21%higher than
prevailing wage rates, and agreed upon wage increases are forecasted to maintain this
difference.
c. Job Security and Working Conditions: REU will take steps to promote Job Security and
working conditions. We will work with both IBEW and UPEC to prioritize the work of REU
staff over temporary or contract labor. Furthermore, we will include hourly employees on
the appropriate health and safety committees to ensure they are able to provide input.
d. Safety and Skills Training: As part of our cammitment to excellence and safety, REU will
ensure a minimum of 80 hours per year dedicated to safety and skills training for Staff in the
Line Technician series (from Ground Worker to Senior Line Technician), as well as for thase
in the Planner and Drafting series.This training program is designed to equip each job
classification with specific skills tailored to their roles,facilitating staff development and
progression through their respective series.
3) Job Creation—High-quality job creation is a priority for the GRIP Grant.To this end, REU will propose
the creation of new positions related to the increased scope of work, including the following:
a. Grant Manager: If awarded the grant, the new Grant Manager will be responsible for
overseeing the entire grant process, ensuring compliance and effective financial
management, and coordinating with various departments to implement grant-funded
projects successfully.
b. Standards, Planning, and Drafting Manager: In response to the additional workload of
overhauling REU's Construction Standards and increasing the rate of project execution. REU
will hire a new manager to oversee the Service Planning Department and Drafting and will
create and manage our new REU Standards Committee, which is comprised of stakeholders
from Planning, Drafting, Engineering, Warehouse, Procurement, and construction staff.
c. Drafter: REU must add another drafter to support the Standards Overhaul Project.
d. Line Crews: REU currently has nine vacant Line Technician positions. If awarded the grant,
REU must pursue more aggressively filling these positions.
Diversi�y, Equifiy, Ir�elusior�, �r�c� Acc�ssibilifiy �D�I��
REU will actively enhance diversity, equity, inclusion, and accessibility (DEIA)through targeted programs and
increased financial support for underrepresented communities. REU plans to partner with local entities to
extend its outreach efforts to disadvantaged groups,aiming to foster a more inclusive workforce.A significant
expansion of scholarships,from $50K total funding to$200K total funding, will underline REU's commitment
to DEIA,providing substantial support to(ow-income individuals aspiring to careers in the energy sector.These
1 Good Jobs Summit Principles Factsheet,available at https://www.dol.gov/sites/dolgov/files/goodjobsJGood-lobs-
Summit-Principles-Factsheet.pdf
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scholarships will be specifically tailored to cover educational costs for�ineman College and associate degrees
related to Electrical Power Technology, facilitating access to pre-apprenticeship programs for those from
underprivileged backgrounds. In addition, REU plans to update scoring criteria for RFPs (Requests for
Proposals) related to this grant project, incorporating DEIA considerations to ensure project partners and
contractors align with these core values. Through these initiatives, REU intends to demonstrate a profound
commitment to building a diverse and inclusive workforce, removing financial barriers to education and
employment, and ensuring equal opportunities within the energy industry.
Jus�ice 40 Ir�i�e��ives
"Created under the Biden-Harris Administration,Justice40 establishes the goal that 40%of the overall
benefits of certain federal investments flow to disadvantaged communities (DACs).2" Incorporating the
Justice40 initiative into the grant application, REU is committed to proactively anticipating and mitigating
potential negative impacts on Disadvantaged Communities (DACs)through the development of a
comprehensive "Good Neighbor Plan."This plan, developed through our Community Advisory Group,will
address concerns such as construction noise, pollution, outages, and traffic impacts, ensuring our operations
remain considerate of community well-being. Moreover, REU will prioritize projects that directly benefit
DACs, recognizing that these communities often have the oldest infrastructure and are disproportionately
affected by rate pressures.
C�r�clusior� �r�d �I�xt Steps
The Community Benefits Plan is a critical aspect of the GRIP Grant Applications.Although it is only 20%of
the application score, DOE has gone to great lengths to emphasize that a strong plan is required for a
winning application. If approved to submit the grant,Staff will continue to develop a robust Community
Benefits Plan and a solid technical application.
Z Justice40 Initiative Fact Sheet-https://www.energy.gov/sites/default/files/2022-
08/J40%20Fa ct%20Sheet%208_25_22%20v3.pdf
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