DATE: April 11, 2023
SUBJECT:
Title
RESOLUTION FINDING THE BOARD ACTION EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), INCLUDING, BUT NOT LIMITED TO, CEQA GUIDELINES SECTIONS 15301, 15303, AND 15304 AND IN SUPPORT OF THE DISTRICT’S APPLICATION TO THE US DEPARTMENT OF TRANSPORTATION’S PORT INFRASTRUCTURE DEVELOPMENT PROGRAM FOR THE INSTALLATION OF SHORE POWER, BERTH REHABILITATION AND LIGHTING UPGRADES AT THE NATIONAL CITY MARINE TERMINAL
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EXECUTIVE SUMMARY:
District staff is developing a grant application to the US Department of Transportation’s Port Infrastructure Development Program. The District’s application is requesting funding for the rehabilitation of two primary berths at NCMT, one shore power plug, lighting upgrades, and technology to improve terminal efficiency. The Port is requesting up to $11,250,000.00 in PIDP funding to fund 30% of the total project cost of $36,800,000.00. If successful, the District will be required to allocate $2,950,000 in match funds, along with other state and private funding sources, to complete the project. The proposed resolution will be included in the District’s application package as a demonstration of the District’s commitment to this project, and to leveraging multiple sources of funding to complete the project. If staff is notified that the 2023 application is successful, the Board will be asked to accept the grant award and allocate match funding at a future Board meeting.
RECOMMENDATION:
Recommendation
Adopt a Resolution supporting the District’s application to the US Department of Transportation’s Port Infrastructure Development Program for the installation of shore power, berth rehabilitation, and lighting upgrades at the National City Marine Terminal.
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FISCAL IMPACT:
If successful, an award from the US Department of Transportation’s Port Infrastructure Development Program (PIDP) would result in an additional $14.2M for a portion of the construction of shore power and berth rehabilitation at NCMT.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A Port that the public understands and trusts.
• A thriving and modern maritime seaport.
• A Port with a healthy and sustainable bay and its environment.
• A Port that is a safe place to visit, work and play.
• A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
The US Department of Transportation released the 2023 Notice of Funding Opportunity (NOFO) for the Port Infrastructure Development Program (PIDP) on February 28. This year’s NOFO makes available $662 Million in federal funding for critical port and port-related infrastructure projects. Of this funding, $165.5M is set aside for funding requests under $11.25M at small ports, as determined by cargo volume. Federal funds for this grant program are appropriated under the Bipartisan Infrastructure Law and the FY2023 Appropriations Act. Grants are awarded on a competitive basis for projects that improve the safety, efficiency, or reliability of the movement of goods through ports and intermodal connections to ports. The DOT also considers how projects improve sustainability, equity, workforce development, and address climate change.
The District’s 2023 application includes four primary elements:
1. Rehabilitation and life extension of two primary berths to improve safety,
2. Terminal electrification to support grid-based vessel power at berth
3. Lighting upgrades to improve electrical use, increase safety and improve working conditions, and
4. Technology to improve terminal efficiency
The PIDP grant program requires that funding be obligated no later than September 30, 2026. Funds should be fully expended within five years of obligation.
The Port is requesting up to $11,250,000.00 in PIDP funding to fund 30% of the total project cost of $36,800,000.00. Match funding will consist of $20,000,000.00 from the State of California Port and Freight Infrastructure Program, $2,600,000 in private investments in operational efficiency technology from Pasha Automotive Services, and $2,950,000 in Port operational funds. A breakdown of the proposed project budget is as follows:
Under the expected terms of a FY2023 PIDP grant agreement, the District also agrees to complete National Environmental Policy Act (NEPA) certification if PIDP grant funds are awarded; to comply with the Build America, Buy America Act; to complete all components included in the application, regardless of whether federal funds are used to complete that component; to submit performance reports during project construction and for three years following completion; and to comply with all other relevant federal laws and regulations. PIDP funds will be used to reimburse project expenses after the grant award has been executed, allowable expenses are incurred, and a valid reimbursement request has been submitted to the Maritime Administration.
The proposed resolution will be included in the District’s application package as a demonstration of the District’s commitment to this project, and to the ability of the project to leverage multiple sources funding for implementation. If staff is notified that the 2023 application is successful, the Board will be asked to accept the grant award and allocate match funding at a future Board meeting.
The PIDP grant program is extremely competitive. $703 Million was available in 2022; the Department received 141 eligible applications requesting $2.8 Billion in funding. Only 41 applications received funding in last year’s grant round. The 2023 application is due on April 28. Staff expects that awards will be announced in the Fall.
General Counsel’s Comments:
The Office of the General Counsel reviewed this agenda as presented to it as to form and legality.
Environmental Review:
The proposed Board action, including without limitation, a resolution in support of the District’s application to the U.S. Department of Transportation’s Port Infrastructure Development Program for the installation of shore power, berth rehabilitation and lighting upgrades at the National City Marine Terminal, is Categorically Exempt pursuant to California Environmental Quality Act (CEQA) Guidelines Sections 15301 (Existing Facilities), 15303 (New Construction or Conversion of Small Structures), and 15304 (Minor Alterations to Land) and Sections 3.a.(7), 3.c.(2)(3), and 3.d.(7) of the District’s Guidelines for Compliance with CEQA because the project would consist of an application to the U.S. Department of Transportation’s Port Infrastructure Development Program that would involve not result in a significant cumulative impact due to the continuation of the existing use, and would not involve the removal of mature, scenic trees. The District has determined none of the six exceptions to the use of a categorical exemption apply to this project (CEQA Guidelines Section 15300.2). The project was previously determined to be exempt from CEQA on July 6, 2021. Pursuant to Section 15378(c) of the CEQA Guidelines, the term “project” refers to the activity being approved, which may be subject to several discretionary approvals of governmental agencies and does not mean each separate governmental approval. Accordingly, the proposed Board action is a subsequent discretionary approval of a previously approved project. No further action under CEQA is required.
The proposed Board action complies with Section 87 of the Port Act which allows for the establishment, improvement, and conduct of a harbor, and for the construction, reconstruction, repair, maintenance, and operation of wharves, docks, piers, slips, quays, and all other works, buildings, facilities, utilities, structures, and appliances incidental, necessary, or convenient, for the promotion and accommodation of commerce and navigation. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
The proposed Board action is considered excluded development pursuant to Sections 8.a.(2) (Existing Facilities), 8.c.(2)(3) (New Construction or Conversion of Small Structures), and 8.d.(6) (Minor Alterations to Land) of the District’s Coastal Development Permit Regulations because the project would consist of an application to the U.S. Department of Transportation’s Port Infrastructure Development Program that would involve negligible expansion of use beyond that previously existing, would involve no change of existing use of the property, and would not involve the removal of mature, scenic trees. A categorical determination of exclusion and notice of approval was previously issued for this project on July 6, 2021 and became effective 10 working days after notification to California Coastal Commission staff, since no appeals were received. Therefore, issuance of a Coastal Development Permit or subsequent exclusion is not required for the proposed Board action.
Diversity, Equity, and Inclusion Program:
This agenda sheet has no direct DEI impact on District workforce or contract reporting at this time.
PREPARED BY:
Aimee Heim
Program Director, Government & Civic Relations