SUBJECT
Title
ADOPT A RESOLUTION TO APPLY FOR AND ACCEPT GRANT FUNDS FROM THE CALIFORNIA DEPARTMENT OF FOOD AND AGRICULTURE FOR THE HEALTHY SOILS PROGRAM BLOCK GRANT; ADOPT A RESOLUTION TO AUTHORIZE THE FILING OF AN APPLICATION FOR GRANT FUNDS FROM THE SAN DIEGO ASSOCIATION OF GOVERNMENTS AND ACCEPTING THE TERMS OF THE GRANT AGREEMENT; FIND THE ACTIONS ARE EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (DISTRICTS: ALL)
Body
OVERVIEW
On September 11, 2024 (6), the County of San Diego (County) Board of Supervisors adopted the 2024 Climate Action Plan (CAP), which includes the development of 70 actions across five sectors: Built Environment and Transportation, Energy, Solid Waste, Water and Wastewater, and Agriculture and Conservation. One of the actions in the CAP is the development of the Sustainable Operations in Land Stewardship (SOILS) Program, previously known as the Climate Smart Land Stewardship Program, to increase carbon sequestration on 3,000 acres of agricultural land by 2030 and 36,214 acres by 2045. Another CAP action strives to increase access to transportation services and connections to reduce vehicle miles traveled (VMT) in single occupancy vehicles.
This is a request for the Board to adopt Resolutions authorizing the County to apply for and accept a California Department of Food and Agriculture (CDFA) Healthy Soils Program Block Grant and the Flexible Fleets Pilot Grant Program (FFGP), administered by the San Diego Association of Governments (SANDAG) to support the CAP actions described above. If the County is selected for either award, it also authorizes the Director of Planning & Development Services (PDS) or a designee to execute all related documents.
Healthy Soils Program Block Grant
The SOILS Program offers grants to farmers and ranchers (collectively referred to as agricultural producers) in the unincorporated area of San Diego County to incentivize the adoption of climate-smart agricultural practices. This voluntary program aims to support the adoption of climate-smart agricultural practices to mitigate carbon emissions and support agricultural production and resilience in the region. Climate-smart, carbon farming, and regenerative agriculture are terms used to describe techniques that increase the amount of carbon that the land and plants remove from the atmosphere. Beyond sequestering carbon, practices like compost application or cover cropping have the potential to improve soil health and produce other complementary benefits (co-benefits) such as increasing water retention in soil, improving biodiversity, and increasing crop production. Since CAP adoption, PDS staff have developed a pilot version of the SOILS Program, funded by a grant from the California Department of Conservation. Current funding for the SOILS Program and other related efforts supporting the agricultural community ($1.7 million) has resulted in grant funds to 13 agricultural operations in the region. Additional funding is needed to expand beyond this pilot phase of the program to meet the need of agricultural producers in the region and meet CAP goals.
Staff have identified the CDFA Healthy Soils Program Block Grant as a funding source for the SOILS Program through 2031. This competitive State grant is funded by Prop 4 and will award applicants up to $4 million over four years. If awarded, the County would use the funds to directly support up to 100 agricultural producers in the San Diego region, who will be selected through a competitive application process, to help them incorporate climate-smart agricultural practices into their operations.
Flexible Fleets Pilot Grant Program
The CAP also aims to reduce VMT by expanding mobility options, improving connectivity, and supporting the development of community-based transportation services, including zero-emission (ZE) microtransit options in unincorporated communities. On-demand ZE microtransit plays an essential role in reducing VMT and resulting greenhouse gas emissions. Beyond these benefits, microtransit services offer additional co-benefits, including improved mobility for underserved communities, reduced roadway congestion, and increased access to employment and community destinations. Since CAP adoption, PDS has launched the Planning for First Mile/Last Mile Transportation Solutions in Unincorporated San Diego County Villages project funded by a grant from Caltrans. Current funding focuses on public engagement and planning for expanded mobility options. Additional funding is needed to move from planning to implementation to help meet CAP goals.
Staff have identified the Flexible Fleets Pilot Grant Program (FFGP), administered by the San Diego Association of Governments (SANDAG) as a funding source to transition current planning efforts into implementation, including a two-year pilot project that would deploy ZE microtransit in the communities of Spring Valley and Casa de Oro. This competitive grant is funded by regional sales tax (TransNet) and state and federal grants. It will award applicants up to $1 million over two years for new pilot projects. The funds may be used to support the initiation and ongoing operation of the microtransit service, i.e., the cost to operate vehicles, the coordination of an on-demand system, etc., including ensuring the service is accessible and highly promoted to the relevant communities.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Find that the proposed actions are exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3), Section 15301, and Section 15304 of the California CEQA Guidelines.
2. Adopt a Resolution entitled: RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO AUTHORIZING THE DIRECTOR OF PLANNING & DEVELOPMENT SERVICES TO APPLY FOR AND ACCEPT GRANT FUNDS FROM THE CALIFORNIA DEPARTMENT OF FOOD AND AGRICULTURE FOR THE HEALTHY SOILS PROGRAM BLOCK GRANT (Attachment A)
3. Adopt a Resolution entitled: RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO AUTHORIZING THE FILING OF AN APPLICATION FOR GRANT FUNDS FROM THE SAN DIEGO ASSOCIATION OF GOVERNMENTS AND ACCEPTING THE TERMS OF THE GRANT AGREEMENT (Attachment B).
4. Authorize the Director, Planning & Development Services, or their designee, to execute all required grant documents pertaining to the Resolutions (Attachment A and Attachment B). including, but not limited to, applications, agreements, annual extensions, revisions, payment requests, and/or any agreements and/or memorandums of understanding with other entities as co-applicants, sub-awardees, subgrantees, participants, and/or partners in the application and spending of grant funds received, that do not materially impact or alter the services or funding level and may be necessary for completion of the grant deliverables.
EQUITY IMPACT STATEMENT
Both the Healthy Soils Program and the San Diego Association of Governments (SANDAG) Flexible Fleets Grant Program (FFGP) place a strong emphasis on equity and providing resources to historically underserved communities. First, the Healthy Soils Program Block Grant will help cover costs associated with technical assistance requirements and direct grants to qualified agricultural producers, incentivizing the adoption of climate-smart agricultural practices that will help meet the goals of the County’s Climate Action Plan. The Healthy Soils Program is funded by the Climate Bond which has a focus on serving Socially Disadvantaged Farmers and Ranchers, Severely Disadvantaged Communities, and Disadvantaged Communities by ensuring that 40% of Climate Bond funds must provide meaningful and direct benefits to these communities, as defined by the State. Similarly, the FFGP will provide financial support to implement a shared, on-demand zero-emission microtransit pilot service in unincorporated San Diego County for up to two years. The grant will support all costs associated with planning, coordination and implementation of services, including community outreach and education. Much like the Climate Bond, the FFGP places an emphasis on serving historically underserved populations and disadvantaged communities as defined by State and SANDAG criteria and requires applicants to demonstrate how their pilot project will benefit these communities.
SUSTAINABILITY IMPACT STATEMENT
Pursuit of the California Department of Food and Agriculture Healthy Soils Program Block Grant and the Flexible Fleets Pilot Grant will potentially bring more funding to the region to help meet the County of San Diego’s Climate Action Plan goals. The grant application and subsequent expansion of the Sustainable Operations in Land Stewardship (SOILS) Program will contribute to the County of San Diego's Sustainability Goal 6, which aims to develop natural and organic land management policies and practices that protect ecosystems, habitats, biodiversity, and soil health. If awarded, the SOILS Program will incentivize agricultural producers to adopt climate-smart agricultural practices, thereby positively impacting the environment and supporting the County’s commitment to sustainability. Similarly, the grant application and subsequent implementation of the Flexible Fleets pilot project will contribute to County of San Diego’s Climate Action Plan goals and Sustainability Goal 3, which aims to shift away from internal combustion personal transport and reduce air pollution.
FISCAL IMPACT
There is no fiscal impact associated with these recommendations. If approved and grant funds are awarded from the Healthy Soils Program Block Grant; this could result in estimated costs and revenue of up to $4,000,000 over the grant term (four years) in Fiscal Years 2026-27 through Fiscal Year 2030-31. If approved and grant funds are awarded from the San Diego Association of Governments Flexible Fleets Pilot Grant Program, this could result in costs and revenue of up to $1,000,000 over the grant term (two years) in Fiscal Year 2026-27 through Fiscal Year 2029-30. There will be no change in net General Fund costs and no additional staff years resulting from either grant award. If either grant is awarded, Planning & Development Services will return to the Board to request appropriation of funds as necessary.
BUSINESS IMPACT STATEMENT
Both the Healthy Soils Program and the San Diego Association of Governments Flexible Fleets Grant Program have the potential to result in positive economic impacts. Expansion of the Sustainable Operations in Land Stewardship (SOILS) Program will lead to greater adoption of climate-smart agricultural practices that help to address climate change, as well as provide various co-benefits such as improved air quality and increased financial support for the local agricultural economy. Climate-smart agricultural practices have been shown to improve soil health, thereby increasing soil water retention and reducing reliance on synthetic fertilizers, both of which support the bottom line for agricultural producers in the region. Similarly, funding for the zero-emission microtransit project will help reduce greenhouse gas emissions by reducing vehicle miles traveled while also providing mobility for residents who lack reliable transit options. Increased mobility can also lead to greater accessibility to jobs and other services. Additionally, microtransit services can support local economies by stimulating increased economic activity through improved access to local businesses. Lastly, the services themselves require the creation of jobs such as drivers, dispatchers and maintenance staff.
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
On September 11, 2024 (6), the County of San Diego (County) Board of Supervisors adopted the 2024 Climate Action Plan (CAP), which includes the development of 70 actions across five sectors: Built Environment and Transportation, Energy, Solid Waste, Water and Wastewater, and Agriculture and Conservation. One of the actions in the Agricultural and Conservation sector is the development of the Sustainable Operations in Land Stewardship (SOILS). The SOILS Program has the goal of increasing carbon sequestration on 3,000 acres of agricultural land by 2030 and 36,214 acres by 2045. To advance this action, since CAP adoption, Planning & Development Services (PDS) staff have developed a pilot version of the SOILS Program that is currently being implemented on 13 farms in the San Diego region and is funded by a grant from the California Department of Conservation. Additional funding is needed to expand beyond this pilot phase of the program to meet the needs of agricultural producers in the region and meet CAP goals. Within the Built Environment and Transportation sector, one of the actions is to increase access to transportation services and connections to reduce vehicle miles traveled (VMT) in single occupancy vehicles. To advance this action, since CAP adoption, PDS has launched the Planning for First Mile/Last Mile Transportation Solutions in Unincorporated San Diego County Villages project funded by a grant from Caltrans. Efforts within the Caltrans grant focus on public participation and planning. This is a request for the Board to adopt Resolutions authorizing the County to apply for and accept a California Department of Food and Agriculture (CDFA) Healthy Soils Program Block Grant and the Flexible Fleets Pilot Grant Program (FFGP), administered by the San Diego Association of Governments (SANDAG) to support CAP actions related to the Agriculture and Conservation and Built Environment and Transportation sectors, respectively. If the County is selected for either award, it also authorizes the Director of PDS or a designee to execute all related documents.
Healthy Soils Program Block Grant
The SOILS Program offers funding to farmers and ranchers (collectively referred to as agricultural producers) in the form of grants, to incentivize the use of climate smart agricultural practices in the unincorporated area of San Diego County. This voluntary program aims to support the adoption of climate-smart agricultural practices to mitigate carbon emissions and support agricultural production and resilience in the region. Climate-smart, carbon farming, and regenerative agriculture are terms used to describe techniques that increase the amount of carbon that the land and plants remove from the atmosphere. Beyond sequestering carbon, practices like compost application or cover cropping have the potential to improve soil health and produce other complementary benefits (co-benefits) such as increasing water retention in soil, improving biodiversity, and increasing crop production.
On May 24, 2023 (7), the Board adopted a resolution to apply for and accept grant funds from the California Department of Conservation for the Climate Smart Land Management (CSLM) Program. The County was successful in its application to the CSLM Program and was subsequently awarded $1.7 million in September 2023. This funding is being used to support a variety of agricultural activities in the region. One of the deliverables to the State was the development and implementation of a pilot version of the SOILS Program. A competitive procurement was conducted to select a contractor to support program development and administration. Currently, 13 agricultural producers in the region are implementing climate-smart agricultural practices with on-farm technical assistance. Implementation of these practices began in January 2026 and will conclude by the end of 2026, the end of the grant term. Additional funding is needed to expand the SOILS Program to meet the CAP's goals. Staff have identified the California Department of Food and Agriculture’s Healthy Soils Program Block Grant as a funding source for expansion and continuation of the SOILS Program through 2031. This competitive State grant is funded by Prop 4 and will award applicants up to $4 million over four years. If the County is awarded the funds, they may be used to support up to 100 agricultural producers, who will be selected through a competitive application process, to help them incorporate climate-smart agricultural practices into their operations.
Since 2018, the California Department of Food and Agriculture (CDFA) Office of Agricultural Resilience and Sustainability (OARS) has administered the Healthy Soils Program (HSP), which has provided direct funding to California agricultural producers to adopt climate-smart agricultural practices that sequester carbon and strengthen the resilience of California’s farms and ecosystems. In early 2026, OARS announced that HSP would be administered as a Block Grant, creating the opportunity for regional organizations, such as the County, to administer local grant programs that support agricultural producers in implementing climate-smart agricultural practices.
In April 2026, OARS released final guidelines for the HSP Block Grants. The Block Grants are funded by the voter approved Proposition 4, the Safe Drinking Water, Wildlife Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (the Climate Bond), to address the challenges facing California due to current and future climate impacts. The Climate Bond appropriated $65 million to CDFA for grants that promote practices on farms and ranches that improve soil health or accelerate atmospheric carbon removal or soil carbon sequestration. Additionally, the Climate Bond has a strong focus on serving Socially Disadvantaged Farmers and Ranchers, Severely Disadvantaged Communities, and Disadvantaged Communities by ensuring that 40% of Climate Bond funds must provide meaningful and direct benefits to these communities.
The HSP Block Grant program is specifically interested in supporting regional partners to ensure that funding reaches agricultural producers along with local technical expertise to expand the adoption of soil-building practices across California. The awarded organizations of the HSP Block Grants will work directly with agricultural producers in their region by providing outreach, technical assistance, and support throughout project implementation. These organizations manage the local application process, recommend projects for funding to CDFA, establish grant agreements with producers who carry out soil-health practices on their operations, and manage funded on-farm projects.
Flexible Fleets Pilot Grant Program
The CAP also aims to reduce VMT in the unincorporated area of the county by expanding mobility choices, improving connections and supporting the development of transportation services including zero-emission (ZE) transportation options. On-demand ZE microtransit is a key strategy for lowering dependence on single occupancy vehicles. Instead of using their own cars, community members can use on-demand ZE microtransit to replace short local trips thereby reducing single rider vehicle use and associated greenhouse gas emissions. Microtransit also provides important community co-benefits including increased mobility for underserved populations, reduced roadway congestion, better access to community destinations like shopping areas, employment centers, health services, and schools.
Since CAP adoption, the County has advanced this strategy by pursuing external funding to support early‑stage planning. The County was awarded $300,000 by the Caltrans Sustainable Transportation Planning Grant in November 2025 to fund the Planning for first Mile/Last Mile Transportation Solutions in Unincorporated San Diego County Villages project. This funding is being used to evaluate existing mobility needs through technical and community-informed assessments, develop a prioritization checklist and cost-benefit analysis of services, and prepare to apply for future funding opportunities to implement microtransit efforts.
In April 2019, the San Diego Association of Governments (SANDAG) introduced the “5 Big Moves” transportation strategy which includes promotion and support for Flexible Fleets. In March 2026, SANDAG launched the FY 2026 Flexible Fleets Pilot Grant Program (FFGP), with up to $4.5 million available for new and enhanced shared mobility pilot projects. This funding can be used to enhance mobility in underserved areas, fill transit connections, and improve air quality in disadvantaged communities. If awarded, funding from the FFGP will deliver free-of-charge, on-demand, ZE microtransit services in the communities of Spring Valley and Casa de Oro for a two-year period. These communities were identified as “Flexible Fleets Areas” in SANDAG’s 2025 Regional Plan, are adjacent to fixed route transit corridors, and include an Environmental Justice Community. The pilot project will collect data that can inform future projects and improve competitiveness when seeking funding for long-term microtransit services throughout the unincorporated area.
ENVIRONMENTAL STATEMENT
Today’s proposed actions to adopt a resolution authorizing the application for and acceptance of a grant are exempt from the California Environmental Quality Act (CEQA). Pursuant to Section 15061(b)(3) of the CEQA Guidelines, CEQA only applies to projects that have the potential to cause a significant effect on the environment. Applying for and receiving grant funds and administering a local grant program focused on greenhouse gas emissions reductions and soil health will not have a significant effect on the environment. In addition, Section 15301 of the CEQA Guidelines exempts the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Section 15304 exempts minor public or private alterations in the condition of land, water, and/or vegetation that do not involve the removal of healthy, mature, scenic trees except for forestry and agricultural purposes. The on-farm projects would involve only minor alterations to topographical features and the condition of the land, water, or vegetation, and would not include the removal of healthy, mature, scenic trees except for agricultural purposes. Implementing climate-smart agricultural practices is comparable to new gardening or landscaping, which is described as a specific example of an exemption under Section 15304.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s proposed actions support the Sustainability, Equity, and Community Initiatives in the County of San Diego’s 2026-2031 Strategic Plan by pursuing grants to implement projects that will actively combat climate change, advance opportunities for economic growth, and facilitate meaningful conversations and grant opportunities to maximize resources through community partnerships to benefit the region.
Respectfully submitted,
DAHVIA LYNCH
Deputy Chief Administrative Officer
ATTACHMENT(S)
Attachment A - RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO AUTHORIZING THE DIRECTOR OF PLANNING & DEVELOPMENT SERVICES TO APPLY FOR AND ACCEPT GRANT FUNDS FROM THE CALIFORNIA DEPARTMENT OF FOOD AND AGRICULTURE FOR THE HEALTHY SOILS PROGRAM BLOCK GRANT
Attachment B - RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO AUTHORIZING THE FILING OF AN APPLICATION FOR GRANT FUNDS FROM THE SAN DIEGO ASSOCIATION OF GOVERNMENTS AND ACCEPTING THE TERMS OF THE GRANT AGREEMENT
Attachment C - Categorical Notice of Exemption