Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Jasneet W. Sharma, Director, Sustainability Department
Subject: Resolution Authorizing Acceptance of $765,038 in Grant Funds from Peninsula Clean Energy for Projects to Reduce Greenhouse Gas Emissions from Buildings and Transportation
RECOMMENDATION:
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Adopt a resolution authorizing the County of San Mateo to accept a $765,038 grant from Peninsula Clean Energy and enter into a grant agreement to fund four projects to reduce greenhouse gas emissions from buildings and transportation.
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BACKGROUND:
Peninsula Clean Energy (PCE) is a Community Choice Energy agency that provides all electricity customers in San Mateo County with clean electricity. PCE is a Joint Powers Authority governed by a Board of Directors comprised of elected officials representing the 20 incorporated cities in San Mateo County and the County of San Mateo (County).
In December 2023, the PCE Board of Directors authorized a one-time allocation of $11.5 million in surplus funds for the 21 member agencies to implement local energy projects. PCE allocated to each member agency a specific funding amount based on year-end 2023 customer count in each jurisdiction. The County of San Mateo’s grant allocation totals $765,038. Grant funds must be used in a manner consistent with PCE’s mission of reducing greenhouse gas (GHG) emissions.
In 2021 the Board adopted the Government Operations Climate Action Plan (GOCAP) (Resolution No. 077960), a comprehensive strategy to significantly reduce GHG emissions from County operations and achieve carbon neutrality by 2035. In 2022 the Board adopted the Community Climate Action Plan (CCAP) (Resolution No. 079264), which outlines a path to reduce GHG emissions generated in unincorporated San Mateo County and to achieve carbon neutrality by 2040. In June 2025, the Sustainability Department submitted an application to PCE proposing to use the County’s member agency grant allocation for four projects that will reduce GHG emissions and support implementation of the County’s GOCAP and CCAP.
DISCUSSION:
The PCE Board of Directors approved the County’s grant application at its July 24, 2025 board meeting. The term of the agreement between PCE and the County is from September 24, 2025, to September 23, 2027. The following approved projects will reduce County operational and community GHG emissions in the building and transportation sectors.
• Project 1: Pilot subsidies for 20-40 single-family households in unincorporated county to upgrade to electric equipment.
o Project Cost: $40,000
o Scope: The County will pilot a program for 20 to 40 single-family households in unincorporated county to receive subsidies to convert methane gas equipment such as water heaters to electric equipment through the Bay Area Regional Energy Network’s (BayREN) single family home program. This project supports the CCAP goal of converting 16% of existing buildings to all-electric equipment by 2030. The Sustainability Department administers the BayREN program for San Mateo County and the PCE grant funding will be used by the Sustainability Department to leverage BayREN resources.
• Project 2: Convert 12 homes in unincorporated county from methane gas to all-electric equipment.
o Project Cost: $387,464
o Scope: This project will convert methane gas equipment to electric equipment in 12 homes in unincorporated county. It leverages and adds funding to the existing PCE Home Upgrade program to provide whole-home full-service installation of electric equipment with a focus on low-income households in single-family homes. This project supports the CCAP goal of converting 16% of existing buildings to all-electric equipment by 2030. Funding will be directly accessed by the Sustainability Department through PCE’s Home Upgrade program.
• Project 3: Purchase electric vehicles for County motor pool fleet.
o Project Cost: $258,234
o Scope: The County will purchase six electric vehicles (EVs) to replace internal combustion engine vehicles in the County’s motor pool fleet. This supports the GOCAP goal to convert 100% of the County’s light- and medium-duty fleets to zero emission vehicles by 2035. The Department of Public Works (DPW) will lead on this project and funding received for this purpose will be transferred to DPW via a future Appropriation Transfer Request, as appropriate.
• Project 4: Install public EV charging infrastructure at Pescadero Fire Station.
o Project Cost: $79,340
o Scope: The County will install electric vehicle (EV) charging infrastructure at the newly constructed Pescadero Fire Station. This supports the CCAP goal of installing accessible public EV charging stations, especially in a rural community that currently has no existing EV infrastructure. Funding will be directly accessed by the County’s Project Development Unit through PCE’s EV Ready program.
The County Attorney’s Office has reviewed and approved the resolution and agreement as to form.
COMMUNITY IMPACT:
The grant funding is directly going towards projects that support the CCAP and will reduce GHG emissions in unincorporated county. The home upgrade projects will support low- and moderate-income households in unincorporated county to lower energy use, reduce energy costs and achieve cleaner air. The EV charging infrastructure project will benefit the whole community of Pescadero since the closest public charging infrastructure is currently over 18 miles away.
FISCAL IMPACT:
The total grant funding is $765,038 and does not require any matching funds. Of this amount, $466,804 will be administered by PCE on behalf of the County to support projects 2 and 4. The remaining $298,234, allocated for projects 1 and 3, has been included in the Sustainability Department’s FY 2025-26 and FY 2026-27 Approved Budgets. Of that amount, $258,234 will be transferred to the Department of Public Works for the purchase of EVs. The full cost of all four projects is covered by the grant, and there is no Net County Cost associated with this agreement.