REPORT TO THE CITY COUNCIL
FROM: GREGORY A. BARFIELD, M.A., Director
Department of Transportation
BY: ORIE RUBALCAVA, M.P.A., Projects Administrator
Department of Transportation
SUBJECT
Title
***RESOLUTION - Authorizing the submission of all subaward agreements from Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) and authorizing the City Manager, or designee, to execute all subaward agreements, including all necessary documents, to accept funds for fuel cell electric buses (FCEB) and planning, engineering, and construction of hydrogen fueling infrastructure, on behalf of the City (Subject to Mayor’s Veto).
Body
RECOMMENDATION
Staff recommends Council adopt a resolution authorizing the submission of all subaward agreements from ARCHES and authorizing the City Manager, or designee, to execute all subaward agreements, including all necessary documents, to accept funds for FCEBs and planning, engineering, and construction of hydrogen fueling infrastructure, on behalf of the City.
EXECUTIVE SUMMARY
The Department of Transportation Fresno Area Express (FAX) seeks Council approval of the attached resolution authorizing the City Manager, or designee, to submit a subaward agreement seeking funding, and to execute and file the associated required documents required by ARCHES on behalf of the City to accept the funding. With this award, FAX seeks to purchase FCEBs and initiate planning, engineering, and construction of hydrogen fueling infrastructure.
BACKGROUND
ARCHES is a public-private partnership within the State of California aimed at creating a sustainable statewide network of clean hydrogen hubs with the objective of fully decarbonizing regional economies. The program is led by the California Governor’s Office of Business and Economic Development (GO-Biz) alongside other state agencies, the legislature, local governments, and institutions of higher education including University of California and two of its affiliated national laboratories. ARCHES private partnerships include leaders in energy research, communities, trades, utilities, for-profit companies and nongovernmental organizations.
The Bipartisan Infrastructure Law provides the Department of Energy (DOE) with $50 billion in public-private sector investment for a clean hydrogen economy. In response to a Notice of Funding Opportunity (NOFO), ARCHES applied to DOE for a project including a complement hydrogen fueling infrastructure and vehicle scopes throughout the state of California including a hydrogen hub with FAX. In October 2023, the DOE’s Office of Clean Energy Demonstration (OCED) announced its selection of the ARCHES project for an award in the amount of $1.2 Billion in federal funding. The scopes detailed in the project description include a blueprint for decarbonizing public transportation, heavy duty trucking, and port operations - key emissions drivers in the state and sources of air pollution that are among the hardest to decarbonize. The project promises to cut up to 2 million metric tons of carbon emissions every year - equivalent to the pollution of 445,000 gasoline-powered cars annually; create an estimated 220,000 new jobs, including 130,000 in construction and 90,000 permanent jobs; estimated $2.95 Billion per year in economic value from better health and health cost savings; and at least 40% of the benefit from projects will flow to disadvantaged communities through community-directed investments, workforce training, and family-supporting jobs.
FAX was included as part of the DOE award to ARCHES, including funding for the purchase of 22 FCEBs and funding for the planning, engineering, and installation of hydrogen hub fueling infrastructure. As a result, $24,450,000 in funding has been allocated to FAX by the ARCHES program, with a $7,950,000 local match, for a project total of $32.4 million. To qualify to receive the allocated funding - which helps to secure ongoing FAX efforts to achieve a zero-emission fleet by 2040 while providing reliable and equitable transportation for the residents of Fresno - FAX must become an ARCHES subrecipient.
The subrecipient program is composed of four phases, with each phase requiring separate agreements and multiple deliverables prior to entering the next phase. ARCHES conducts oversight activities and approves all phases of work. Each phase provides portions of funding, with the final phase totaling the aforementioned $24,450,000. To ensure timely administration and disbursement of ARCHES funding, it is necessary and prudent to authorize the City Manager or designee to execute and submit all ARCHES agreements and other necessary documentation.
ENVIRONMENTAL FINDINGS
Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378, the resolution, and associated acceptance of these funds, does not constitute a project for the purposes of CEQA and does not require an environmental finding.
LOCAL PREFERENCE
Local preference was not considered because this resolution, and associated acceptance of these funds, does not include a bid or award of a construction or services contract.
FISCAL IMPACT
This request will have no impact to the General Fund from this action. All funds accepted under this subaward will be budgeted in the FAX FY2026 budget. FAX Enterprise Funds will make up the required local match.
Attachments:
Resolution
Subaward Agreement