HomeMy WebLinkAbout2020-06-17 Utilities Advisory Commission Agenda PacketAMERICANS WITH DISABILITY ACT (ADA)
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compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance.
NOTICE IS POSTED IN ACCORDANCE WITH GOVERNMENT CODE SECTION 54954.2(a) OR 54956
****BY VIRTUAL TELECONFERENCE ONLY***
https://zoom.us/join Meeting ID: 973 1647 9916 Phone: 1 (669) 900-6833
Pursuant to the provisions of California Governor’s Executive Order N-29-20, issued on March 17, 2020, to
prevent the spread of COVID-19, this meeting will be held by virtual teleconference only, with no physical
location. The meeting will be broadcast on Cable TV Channel 26, live on YouTube at
https://www.youtube.com/c/cityofpaloalto, and Midpen Media Center at https://midpenmedia.org.
Members of the public who wish to participate by computer or phone can find the instructions at the end
of this agenda.
I.ROLL CALL
II.ORAL COMMUNICATIONS
Members of the public are invited to address the Commission on any subject not on the agenda. A reasonable time
restriction may be imposed at the discretion of the Chair. State law generally precludes the UAC from discussing or
acting upon any topic initially presented during oral communication.
III.APPROVAL OF THE MINUTES
Approval of the Minutes of the Utilities Advisory Commission Meeting held on May 20, 2020
IV.AGENDA REVIEW AND REVISIONS
V.REPORTS FROM COMMISSIONER MEETINGS/EVENTS
VI.UTILITIES DIRECTOR REPORT
VII.COMMISSIONER COMMENTS
VIII.UNFINISHED BUSINESS - None
IX.NEW BUSINESS
1.Discussion of Advanced Metering Infrastructure (AMI) Systems and Platforms to Maximize Discussion
Value of the Utility’s AMI Investment for Customers
2.Discussion of 2020 Sustainability and Climate Action Plan Update:Discussion
Updated Goals and Key Action
3.Discussion of City Water System Operations Discussion
4.Discussion of the Demand Side Management Report for Fiscal Year 2019 Discussion
5.Selection of Potential Topic(s) for Discussion at Future UAC Meeting Action
NEXT SCHEDULED MEETING: July 1, 2020
UTILITIES ADVISORY COMMISSION – SPECIAL MEETING
WEDNESDAY, June 17, 2020 – 9:00 A.M.
ZOOM Webinar
REVISED
Chairman: Michael Danaher Vice Chair: Lisa Forssell Commissioners: Donald Jackson, A.C. Johnston, Greg Scharff, Lauren Segal, and Loren Smith Council Liaison: Alison Cormack
AMERICANS WITH DISABILITY ACT (ADA)
Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s
compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance.
ADDITIONAL INFORMATION - The materials below are provided for informational purposes, not for action or
discussion during UAC Meetings (Govt. Code Section 54954.2(a)(2)).
Informational Reports 12-Month Rolling Calendar Public Letter(s) to the UAC
AMERICANS WITH DISABILITY ACT (ADA)
Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s
compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance.
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1.Written public comments may be submitted by email to UACPublicMeetings@CityofPaloAlto.org.
2.Spoken public comments using a computer will be accepted through the teleconference meeting.
To address the Commission, click on the link below for the appropriate meeting to access a Zoom-
based meeting. Please read the following instructions carefully.
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B.You will be asked to enter an email address and name. We request that you identify
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turn to speak.
C.When you wish to speak on an agenda item, click on “raise hand.” The Attendant will
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D.When called, please limit your remarks to the time limit allotted.
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3.Spoken public comments using a smart phone use the telephone number listed below. When you
wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will
be asked to provide your first and last name before addressing the Council. You will be advised how
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Meeting ID: 973-1647-9916
Utilities Advisory Commission Minutes Approved on: Page 1 of 11
UTILITIES ADVISORY COMMISSION VIRTUAL MEETING
MINUTES OF MAY 20, 2020 SPECIAL MEETING
CALL TO ORDER
Chair Danaher called the meeting of the Utilities Advisory Commission (UAC) to order at 9:02 a.m.
Present: Chair Danaher, Vice Chair Forssell, Commissioners Jackson (joined at 9:05), Johnston, Scharff,
Segal, Smith
Absent: None
ORAL COMMUNICATIONS
None.
APPROVAL OF THE MINUTES
Commissioner Segal requested the deletion of "even though she would prefer a higher rate increase" from
her comments at the top of page 6.
Commissioner Scharff moved to approve the minutes of the April 15, 2020 meeting as amended.
Commissioner Johnston seconded the motion. The motion carried 6-0 with Chair Danaher, Vice Chair Forssell,
and Commissioners Johnston, Scharff, Segal and Smith voting yes, and Commissioner Jackson absent.
AGENDA REVIEW AND REVISIONS
None.
REPORTS FROM COMMISSIONER MEETINGS/EVENTS
Commissioner Smith reported Commissioner Jackson and he attended the Finance Committee meeting,
discussed the sale of Bucket 1 Renewable Energy Certificates (RECs), and requested the Finance Committee
review the sale of Bucket 1 RECs again during the meeting.
UTILITIES DIRECTOR REPORT
Dean Batchelor, Utilities Director, delivered the Utilities Director's Report.
Utilities Rate Assistance and Payment Relief for Residential and Commercial Customers – When the
coronavirus (COVID-19) shelter in place public health order took effect, Utilities expanded payment relief and
rate assistance programs to help our residential and commercial customers. We want to ensure the lights
stay on and the water continues to flow for customers experiencing financial challenges during this time. The
City’s proclamation of a local emergency in March instituted a moratorium on disconnections for non-
payment, late payment fees, and full-bill payment requirements. Customers can make partial payments
without penalty and without risk of disconnection for non-payment. The total of missed payments (except
late fees, which will be waived in their entirety) will continue to be owed, but customers will be eligible for
an extended payment plan of up to 18 months from the proclamation termination.
DRAFT
Utilities Advisory Commission Minutes Approved on: Page 2 of 11
Residents may qualify for our Rate Assistance Program, which provides a 25% discount on gas and electricity
charges and 20% discount on storm drain service fees. Both residential and commercial customers can
equalize their monthly bill payment into twelve equal amounts through our Bill Payment Plan. Another
helpful resource is ProjectPLEDGE, which allows commercial and residential Utilities customers in good
standing with their own accounts to donate funding on a one-time or recurring basis to help another resident
in Palo Alto. Residents who are struggling to pay their utility bills may apply to this program for one-time
assistance. Details for anyone wishing to donate or apply for the program can be found at
cityofpaloalto.org/projectpledge.
Utilities Customer Service can help answer questions associated with any of these payment relief and rate
assistance programs. Customer support is available through the call center at (650) 329-2161, the MyCPAU
online customer account service, or by email at UtilitiesCustomerService@cityofpaloalto.org.
Outreach – CPAU has stepped up outreach about these financial assistance programs in an effort to get the
word out to anyone needing help during this difficult time. This information is being shared in community
email updates, on the Utilities and cityofpaloalto.org/coronavirus websites, in social media, and utility bill
inserts, including one currently running during the month of May.
Modifications to Utilities Programs – In accordance with the County order lifting restrictions on construction
activities, some energy efficiency projects are resuming. Examples of allowed activities include commercial
energy efficiency projects, solar installations, EV charger installations, and other work that does not require
staff or consultant visits inside occupied residential dwellings. The County’s construction protocols must be
followed. Large projects in spaces over 20,000 feet of floor space require one set of protocols be followed:
https://www.sccgov.org/sites/covid19/Documents/appendix-b-2-lg-project-04-29-2020.pdf. Small project in
spaces less than 20,000 square feet require a different set of protocols:
https://www.sccgov.org/sites/covid19/Documents/appendix-b-1-sm-project-04-29-2020.pdf.
Although all visits inside occupied residential dwellings are temporarily on hold, many Utilities programs have
been modified to continue to provide value to the community. The Home Efficiency Genie, one of Palo Alto’s
most popular offerings, is available for phone consultations. Refrigerator recycling is available via curbside
pickups. Customers may join waitlists for our low income and multifamily energy assistance programs. Heat
pump water heaters may be installed if there is a health and safety issue caused by lack of a working water
heater. Water conservation activities administered by Valley Water are also available through Do-It Yourself
Home Water Survey Kits which can be mailed to customers and are accessible online. Customers may join a
waitlist for Waterwise Outdoor Surveys. Rebates that do not require pre-inspection measurements, such as
weather-based irrigation controller rebates, irrigation equipment, or rainwater capture components may be
processed and approved without a site visit. Also, due to the shelter in place public health order, all Utilities
events and workshops have been canceled until further notice.
Saving Energy and Water While Sheltering in Place – Staff are committed to finding additional ways to
innovate and expand energy and water related programs in the shelter in place environment. Recognizing
that unprecedented numbers of people are working and studying from home and will likely experience
increased costs on their utility bills, we have been running a social media campaign to share tips and tricks
for saving energy and water and making the home environment more comfortable.
MyCPAU is Here! CPAU has fully launched our new online utility account management system, MyCPAU for
our residential and business utility customers. MyCPAU offers new features and functionalities so customers
can easily manage their utility account services online. MyCPAU has replaced our former My Utilities Account
customer site, and the My Utilities Account site has been discontinued. Customer account information was
automatically migrated to the new MyCPAU site. To inform customers of this, we send out email notices with
a temporary password and instructions for registering on the new site. We are also providing outreach
through utility bill inserts, email newsletters, printing info on utility bills, mailing postcards to everyone in
Palo Alto, and sharing through social media, including with a new announcement video. Our Customer Service
Utilities Advisory Commission Minutes Approved on: Page 3 of 11
Representatives stand ready to answer any questions and help people use the new site. Thank you to those
of you who helped us with the soft launch beta testing and shared feedback to help us improve this service.
Your input was helpful, and we encourage you to continue sharing feedback.
COMMISSIONER COMMENTS
In response to Commissioner Segal's inquiry about the recent power outage near the Community Center,
Dean Batchelor, Utilities Director, advised that the outage occurred after hours, and a crew was called to
replace a bad transformer.
Councilmember Cormack announced the Bay Area Water Supply and Conservation Agency (BAWSCA) has
launched virtual landscape classes. The public can register for classes at bawsca.org.
UNFINISHED BUSINESS
None.
NEW BUSINESS
ITEM 1: DISCUSSION: Update and Discussion of the COVID-19 Health Emergency and the City's Response.
Dean Batchelor, Utilities Director, shared modifications to public health orders, new shifts for operational
crews, symptom checks for employees, resumption of meter reading, and number of staff working onsite and
remotely.
ACTION: None
ITEM 2: DISCUSSION: Discussion of Potential Goals and Key Actions Related to the 2020 Sustainability &
Climate Action Plan.
Jonathan Abendschein, Assistant Director of Resource Management, reported the Utilities Department is
heavily involved in the carbon-reducing aspects of the Sustainability and Climate Action Plan (S/CAP). In April,
the Council directed staff to present amended goals and key actions for the S/CAP. Staff requests the UAC's
feedback regarding goals and key actions that would be useful or productive in achieving carbon reduction
goals. Technical feasibility rather than cost or difficulty of implementation should be the criterion for
suggestions.
Christine Luong, Sustainability Manager, reviewed S/CAP components and focus areas, the proposed update
process, and a timeline of S/CAP events. Not counting natural gas offsets, emissions are down about 36%.
Road transportation accounts for 64% and natural gas about 32% of the remaining emissions. Counting
offsets, emissions are down about 56% with road transportation accounting for 94% of the remaining
emissions. The City needs to reduce about 300,000 metric tons (MT) of CO2 equivalent in order to reach the
80% reduction by 2030 goal. Natural gas consumption has not changed much since 2013. The community has
provided feedback on proposed goals and key actions. AECOM will prepare an impact analysis of suggested
goals and key actions. The Council will provide input regarding the updated goals and key actions on June 8.
In response to Chair Danaher's questions about Council study sessions and the impact analysis, Luong advised
that the Council has received an informational report and held a study session on April 13. The Council will
review updated goals and key actions on June 8 and the impact analysis and all proposed key actions in the
fall. The impact analysis will provide the dollars per ton of carbon avoided and a breakdown of natural gas
usage by type of customer and by appliance, space heating, and water heating.
Commissioner Jackson suggested if complete electrification of Palo Alto at some future time is a goal,
information should state explicitly that as a consequence there will be no natural gas and the City will not sell
natural gas. Additional suggestions are to consider banning any new installation of natural gas-based
appliances and implementing on-bill financing of heat pump water heaters, HVAC units, and induction
cooktops. In reply to his question about the goal of facilitating 50% of vehicles owned by low-income
Utilities Advisory Commission Minutes Approved on: Page 4 of 11
households to be electric vehicles (EV) by 2030, Shiva Swaminathan, Senior Resource Planner, explained that
the object of the goal is to have 50% of low-income households own and drive EVs. The Low Carbon Fuel
Standard program provides funding for EV incentives and requires almost 50% of funds received to be
devoted to low-income customers beginning in 2023. City of Palo Alto Utilities (CPAU) is allowed to define
low-income households. Commissioner Jackson believed CPAU should facilitate the availability of EV charging
to low-income households and multifamily residences. Abendschein added that staff is wrestling with ways
to encourage EV purchases. Commissioner Jackson expressed strong support for implementing an all-electric
utility rate.
Commissioner Smith agreed with Commissioner Jackson's comments. An additional reduction of 118,000 MT
of CO2 emissions from mobility is a big target. He asked how CPAU is poised to implement mobility-related
measures that have been defined as opportunities, assuming the rates effective July 1, 2020 remain in place
for the next two to three years. Swaminathan indicated currently 300,000 MT is associated with
transportation, and 80% of 300,000 MT is 240,000 MT. Of the 300,000 MT related to transportation, about
half is attributed to residents and half to nonresidents traveling within the City. The goal is more like a
reduction of 240,000 MT. Staff, the community, and outside agencies define 300,000 MT as 1 billion vehicle
miles traveled (VMT). The question is how to reduce the VMT of gasoline-powered vehicles to 80%. The City
can utilize transportation demand management (TDM) programs to impact nonresidents' travel within Palo
Alto. Funding for EV charging in general over the next three years totals about $8 million, most of which
comes from the Low Carbon Fuel Standard program. Most of the funds have been dedicated to multifamily
residential, not-for-profit, and mixed-use properties. Telecommuting is another strategy for emissions
reduction. Residential customers can be divided into multifamily and single-family homes. The City has
15,000 single-family homes and 10,000 multifamily homes. Based on a community survey and community
engagement, staff has not dedicated any funding to EV chargers for single-family homes. In 2020, 20% of
funding will be allocated to the Clean Fuels Rebate program, which offers rebates of $1,000-$2,000 per EV.
In 2023, 50% of remaining funding will be allocated to low-income EV purchases. In answer to Commissioner
Smith's query regarding the impact of the health emergency on the stability of funding from the Low Carbon
Fuel Standard program, Swaminathan advised that the City has already received about $4 million, but staff
anticipates the amount of funding will decrease in the short term. Abendschein added that in July the UAC
will hear about near-term programs. A straightforward role for the City is to build an EV charging network,
and a number of programs focus on that. Commissioner Smith reiterated that the reduction goal is
tremendous, and there is not sufficient funding to reach the goal.
In reply to Commissioner Scharff's inquiry regarding eliminating gas offsets or educating the community as
to their value, Dean Batchelor, Utilities Director, reported Staff recommended the Council eliminate the gas
offset program as a cost-cutting measure because of the community's negative perception of gas offsets. In
response to Commissioner Scharf's query about the purchase of gas offsets funding carbon reductions
elsewhere, Abendschein related that staff purchases offsets that have not been approved by the California
Air Resources Board (CARB) but could be approved by CARB if staff submitted them for approval. Generally,
purchase of the offsets funds programs such as destruction of refrigerant and preservation of forests. The
community has expressed concern that relying on offsets to achieve the 80% by 2030 goal is not sustainable
and reduces the urgency of achieving goals. Luong added that the overwhelming feedback from the
community is offsets were always meant to be a bridging strategy. Commissioner Scharff remarked that the
community accepts RECs but not gas offsets. Incentives help the City move incrementally toward its goal, but
they probably will not achieve the goal. He wanted to know the impact of telecommuting on the City's
progress if telecommuting continues after the public health orders are lifted. Abendschein indicated
AECOM's analysis will include needed trip reduction and EV penetration. Incentives are a part of the solution
but not the solution. CPAU has little ability to incentivize the purchase of EVs or telecommuting for
nonresidents, but staff will share some new ideas with the UAC on June 8. Commissioner Scharff suggested
staff educate the community regarding gas offsets if they effectively reduce carbon emissions. Luong
reported the Carbon Disclosure Project and the ICLEI Protocols allow offsets in GHG reporting. The Bay Area
Air Quality Management District (BAAQMD) conducted a study that found traffic in the Bay Area has
Utilities Advisory Commission Minutes Approved on: Page 5 of 11
decreased 50%-85% since the shelter-in-place order was instituted. The traffic reduction is equivalent to a
20%-30% reduction in CO2 equivalents.
Chair Danaher commented that individuals within the community may share and express the same opinion,
but that should not be misconstrued as the community having a single voice.
Vice Chair Forssell observed that companies have found that if they build EV chargers, the vehicles come. The
goal of ensuring adequate numbers and types of EV chargers to support the growing number of EVs could be
phrased more assertively such that the goal is framed as building out public charging in advance of EV
adoption. Perhaps the City could provide a carshare service such as Zipcar as a means to provide electric
mobility to people who live or work in Palo Alto. The City could explore a partnership with Uber and Lyft if
there is some opportunity to facilitate electrification of those fleets. In answer to her query regarding
electrification of the City fleet, Swaminathan advised that the City has about 700 vehicles in its fleet, and
about 250 of those are light-duty vehicles, which are amenable to electrification. The Public Works
Department has committed to replacing gas vehicles with EVs when they reach their end of life unless there
is a compelling reason not to do so. Staff is in the process of assessing the budgetary impact of that. With
respect to the Zipcar concept, staff has approached some low-income programs to fund Zipcars parked on
low-income properties. Property managers at some locations were worried about liability and not
enthusiastic about the idea. Staff continues to pursue that type of idea. Vice Chair Forssell suggested parking
EVs on City-owned property near low-income housing. Commissioner Jackson's comments about the gas
utility and goals for gas usage are intriguing. The key action to explore electrification of City-owned facilities
could be to electrify City-owned facilities. She supported an all-electric utility rate. In answer to her question
regarding industrial processes in the City that use natural gas, Chair Danaher noted laundromats utilize gas
dryers. Abendschein indicated a few industrial processes are located in the City, but the number decreases
every year. Natural gas is used in facilities such as hospitals and large plants where heat pump technology is
not available. It may not be necessary to electrify 100% of the City to achieve the carbon goals.
Commissioner Segal noted the community feedback indicated a lack of understanding of the goal to increase
active transportation mode share and encouraged staff to draft goals free of jargon. She expressed concern
that it will be a long time before shared transportation returns to pre-pandemic levels. In reply to her inquiry
about possible reasons for virtually no change in progress towards goals since 2013 except for offsets,
Abendschein indicated programs are not as impactful as staff would like, but they do have some impact.
Efficiency programs have had significant impacts over the last several years. However, the impacts have gone
towards offsetting load growth in utilities. Commissioner Segal wanted to understand whether staff could
use existing levers, over which the City has some control, more assertively to increase emissions reductions
because funding may not be available for incentives in the short term. Programs that spread out the cost of
electrification for customers would be great. Staff should consider all opportunities to make EV adoption
easier for customers interested in EVs.
In response to Commissioner Johnston's query regarding group-buy opportunities for EVs, Abendschein
indicated the annual SunShares program is an EV group-buy opportunity for the community, but the scale
needs to increase to accelerate EV adoption. Commissioner Johnston agreed that the main action for EV
adoption is increasing access to EV chargers. In response to his question regarding use of biogas, Abendschein
reported the use of biogas is technically feasible, but it is costly and the supply is limited.
Hiromi Kelty, Resource Planner, advised that CPAU offered a new EV group-buy opportunity through Drive
Clean Bay Area in 2020. Unlike the SunShares program, Drive Clean Bay Area offers all EV models.
Commissioner Johnston believed widespread advance notice would be key in generating interest in the
event.
Councilmember Cormack related that questions raised by Commissioners will have to be presented to the
Council. AECOM's work will be important in answering questions. She wanted to focus on goals and actions
Utilities Advisory Commission Minutes Approved on: Page 6 of 11
in the categories of energy, mobility and EVs. Continuing the sale of natural gas is another major question.
Fundamentally, key actions and goals will be based on costs.
Chair Danaher indicated in a few years the majority of EVs should be electric bikes, scooters, and other micro
mobility, which are the most effective way to reduce energy consumption. In addition, group buys could
benefit students, low-income people, and residents in multifamily dwellings. There should be crowd sourcing
of data and suggestions. EV adoption is dependent on chargers, and the UAC's monthly or quarterly report
should track the number of chargers in the City. Staff should more aggressively seek third-party chargers.
Projects are working on the production of carbon-neutral gasoline at competitive prices, and it may be
available in the next few years. The Cap and Trade program is the most economically sensible approach to
reducing carbon. The City's carbon footprint is not limited to emissions in Palo Alto because the
manufacturing of goods utilized in the City occurs outside the City. Offsets are a viable approach to reducing
emissions and should be an important part of policy. He wanted to review cost-benefit data for space heating,
water heating, and cooking because funding may not be utilized cost effectively. On-bill financing for EVs and
appliances should be a priority. Automated Metering Infrastructure (AMI) should not be delayed. With
increased telecommuting and online shopping, Fiber to the Premises (FTTP) should be accelerated. The
difficulties of permitting solar and EV infrastructure should be addressed. The water program has to consider
efficiency and water reuse as well as supply sufficiency.
ACTION: None
ITEM 3: DISCUSSION: Discussion of Accounting for Leaked Natural Gas in Palo Alto Greenhouse Gas Emissions.
Vice Chair Forssell reported leaks occur throughout the natural gas system. CPAU accounts for distribution
leakage within Palo Alto only. The questions are whether CPAU should account for leakage throughout the
system and whether the carbon accounting methodology should utilize a 20-year or 100-year time horizon
for the global warming potential (GWP) of methane. CPAU currently uses a 100-year time horizon. A shorter
time horizon is appropriate given the immediacy and urgency of climate change. Including leakage and a 20-
year time horizon for the GWP will impact the GHG inventory significantly and might impact actions to lower
the City's GHG footprint.
In reply to Chair Danaher's question about the impact of upstream leakage and changing the time horizon,
Vice Chair Forssell explained that changing the GWP from 21 to 86 would increase emissions by
approximately 20,000 MT. Including upstream leakage and changing the GWP would increase emissions by
158,000 MT.
In response to Commissioner Jackson's query regarding the impact of reporting natural gas emissions on staff
resources, Jonathan Abendschein, Assistant Director of Resource Management, advised that an
informational report to the UAC and Council would have a modest impact on staff, which could be absorbed
in existing resources.
Commissioner Segal added that a 20-year time horizon would be a more accurate way to consider methane
emissions. A 100-year time horizon appears to be used because of convention.
In answer to Commissioner Scharff's inquiries about the request for an informational report and the purpose
of such a report, Vice Chair Forssell related that an informational report can raise the UAC's and the Council's
awareness of the issue. The original thought was to suggest increasing the purchase of offsets to cover
leakage, but this is not the right time for increasing expenditures. Awareness of increased emissions could
change the priority of S/CAP action items. Commissioner Segal indicated an approach or a priority for
reducing gas emissions has not been determined. Commissioner Jackson added that gas leakage is part of
building a case against natural gas usage and for ending the Gas Utility. Chair Danaher stated a more complete
view of gas emissions will aid the cost-benefit analyses of different spending measures for reducing GHG.
Utilities Advisory Commission Minutes Approved on: Page 7 of 11
Lena Perkins, Senior Resource Planner, advised that these changes will affect the dollars per ton avoided for
in-City programs versus out-of-state offsets.
ACTION: None
ITEM 4: ACTION: Staff Recommendation that the Utilities Advisor Commission Recommend the City Council
Adopt the Proposed Operating and Capital Budgets for the Utilities Department for Fiscal Year 2021 Report.
Dave Yuan, Strategic Business Manager, reported the fiscal year (FY) Utilities Proposed Operating and Capital
Budgets contain minimal rate increases and commit to providing essential services. Due to the COVID-19
emergency, staff has amended the Proposed Budget to withdraw a request for two new positions and freeze
five vacant non-critical positions. Staff proposes to recruit and fill critical positions in operations and
engineering. Operating Reserve Fund balances are projected to exceed minimum guideline levels, and
recommended 0% rate changes for most Utilities will have minimal impacts. In reviewing the Proposed
Budget, the Council recommended 0% rate increases for the Electric, Water, and Wastewater Utilities, a 2%
rate increase for the Gas Utility, and a 2.5% Consumer Price Index (CPI) rate increase for the Fiber Utility.
With a reduction in the monthly gas service charge, the average residential customer will see a decrease in
their monthly gas bill despite the rate increase. Residential customers with higher usage will see an increase
in their monthly bill. Commercial customers will see a $250-$500 increase in their monthly bills depending
on their usage. Staff anticipates a revenue loss of about $18 million in the Electric Fund due to the 0% rate
increase and a load reduction; proposes to freeze 1.85 full-time equivalents (FTE) in vacant positions;
recommends postponing non-critical electric underground rebuild projects; and proposes to reevaluate the
purchase and sale of RECs.
In response to Chair Danaher's question regarding the loss due to load reduction and offsets for reductions
in purchases, Yuan advised that the anticipated revenue loss does not include a $9 million offset for
purchases.
Yuan continued his presentation, stating staff projects net revenue from the sale of in-state (Bucket 1) RECs
and the purchase of out-of-state (Bucket 3) RECs over five years will total $16.735 million. The net revenue
is based on current hydroelectric generation projections, load projections, and REC market prices. Because
the California Energy Commission (CEC) does not consider out-of-state RECs an eligible renewable resource,
CPAU's Power Content Label (PCL) will reflect 80-90% carbon-free energy.
In reply to Commissioner Jackson's query regarding the PCL, Yuan indicated the Electric Utility's emissions
will be 100% carbon free even though the PCL reflects only 80%.
In answer to Commissioner Smith's questions about increasing the sale and purchase of RECs and a timeframe
for realizing the projected net revenue for FY 2021, Yuan clarified that a policy change allows the purchase
of Bucket 3 RECs. The market price will determine the amount of net revenue for FY 2021. Jim Stack, Senior
Resource Planner, indicated the State has not relaxed its requirements for the use of in-state RECs. Prior to
the pandemic, the State discussed requiring all in-state RECs. With each month that passes, CPAU loses the
opportunity to sell RECs and earn the projected revenue.
In response to Commissioner Jackson's inquiry regarding delaying the sale of July and August RECs, Stack
explained that once CPAU generates RECs, it can sell them as Bucket 3 RECs only. Bucket 1 RECs have to be
sold prior to their generation. Bucket 1 RECs provide the most profit. To realize the projected revenue of $3.8
million for FY 2021, the Council would have to amend the Carbon Neutral Plan in June so that July RECs could
be sold as Bucket 1 RECs by the end of June. A two-month delay could result in the loss of around $1 million
in potential revenue. Jonathan Abendschein, Assistant Director of Resource Management, indicated
amendment of the Carbon Neutral Plan has not been agendized, but a motion to recommend the City Council
approve the budget could include a direction to staff to pursue the program. Given the lead times for staff
reports, staff may not be able to present an amendment to the Carbon Neutral Plan to the UAC in June, which
means the Council would not consider an amendment until September.
Utilities Advisory Commission Minutes Approved on: Page 8 of 11
In reply to Commissioner Segal's query about the UAC's previous consideration of amending the Carbon
Neutral Plan, Abendschein related that the previous discussion pertained to the sale of surplus RECs. A
motion directing staff to pursue an exchange of RECs below the surplus as part of the budget could
accomplish a Carbon Neutral Plan amendment before July.
In answer to Councilmember Cormack's inquiry regarding legal review of the proposal, Abendschein indicated
the proposal is subject to a number of internal reviews, which includes review by the City Attorney.
Commissioner Smith liked the policy of exchanging RECs because it provides an option for the Council and
staff to further electrification efforts via a funding source other than the State or Federal governments. In a
year's time, when the health emergency has hopefully ended, the Council could reverse the policy.
Yuan further stated projections for Electric Operation Reserves at the end of FY 2021 are slightly below target
levels. Under the projections, the Electric Utility can maintain services, invest in critical infrastructure, provide
customer support, promote efficiency programs, and continue implementation of S/CAP programs and
capital improvement projects. The majority of Fiber Utility customers will not be affected by the 2.5% rate
increase. Projected ending Reserves for the Fiber Utility are $34 million. Staff proposes to freeze 0.25 FTE in
vacant positions and increase funding for the Fiber Optics Network Rebuild project. A design contract for the
Fiber Optics Network Rebuild project will be presented to the Council for approval in June.
In answer to Chair Danaher's inquiries regarding the phasing of the project, Yuan indicated Phase 1 for
analysis and design will extend for about six months. Phase 2 for construction will take six to nine months.
Phases 3 and 4 will study FTTP and will be presented to the UAC in about a year.
In response to Commissioner Smith's query about installation of a portion of AMI in FY 2021, Yuan advised
that the Request for Proposals (RFP) will close in mid-June, and contracts may be awarded by the beginning
of calendar year 2021. Installation will probably begin in 2022. Dean Batchelor, Utilities Director, added that
fiber will be installed with AMI collectors because fiber will transmit data from the collectors to the billing
system. Shiva Swaminathan, Senior Resource Planner, clarified that data can be transmitted via fiber or the
cellular network, which is the default method. Fiber provides a robust and secure connection.
Yuan continued his presentation, stating a $3 million reduction in the Gas Utility will be needed to maintain
Reserves. Staff proposes to reduce the scope of the gas main replacement project, freeze 1.15 FTE in vacant
positions, and postpone the gas meter replacement project. Gas Operation Reserves are projected to fall
slightly below target levels at the end of FY 2021. The Gas Utility will maintain the cross-bore safety inspection
program, continue the main replacement project, increase the frequency of Citywide leak surveys, and
evaluate and elevate gas meter testing.
In answer to Commissioner Segal's inquiry regarding meter testing, Batchelor related that meters will be
tested for accuracy and leakage.
Yuan further stated staff proposes to reduce the scope of future sewer main replacement projects and the
sewer sanitary rehabilitation project in the Wastewater Collection Utility. Bond financing of capital projects
is an option if construction costs decrease during a recession. The Wastewater Collection Operation Reserve
is projected to fall below the target level at the end of FY 2021. Staff will complete the cost of service study,
continue to assess and design future sewer main replacement projects, procure a new mobile management
software system, continue the sewer system rehabilitation, and purchase new construction equipment. In
the Water Utility, staff proposes to freeze 1.15 FTE in vacant positions, postpone water meter replacement,
and evaluate and elevate water meter testing. The Water Operation Reserves are projected to reach the
reserve maximum at the end of FY 2021. The Water Utility expects revenue losses due to reduced
consumption and flat rates for two years. The seismic water tank replacement and water main replacements
projects will continue.
Utilities Advisory Commission Minutes Approved on: Page 9 of 11
Bret Andersen remarked that amending the Carbon Neutral Plan will be a notable change because there is a
qualitative difference between Bucket 1 and Bucket 3 RECs. He understood revenues generated from the sale
of RECs would be used for electrification projects.
Commissioner Johnston commended staff for softening the impact of budget constraints on customers. He
concurred with modifying the Carbon Neutral Plan to reduce the impact of the pandemic.
Commissioner Smith recalled the UAC's discussion of RECs in February. Given the economic impacts of the
pandemic and the goal of a carbon-free Palo Alto, helping the City find revenue to accomplish goals is logical.
Commissioner Scharff believed some of the proposals for the Gas Utility requires direction from the City
Council. The majority of savings are obtained through reducing the gas main replacement project. He
questioned staff not proposing bond financing for capital projects when the projects involve safety and the
Gas Utility will not be eliminated in the next ten years. Batchelor noted the Council raised the same issues,
and the Council probably recommended a 2% rate increase in order to fund capital projects. Gas leaks are
minimal, and testing for leaks will continue. Bond financing remains an option for capital projects. Funding
could be taken from the Reserves, but he preferred not to do that. Commissioner Scharff supported the use
of carbon offsets for the Gas Utility. Without the offsets, the Gas Utility will not be carbon neutral. In answer
to his question regarding alternatives to eliminating the offset program, Batchelor indicated funding for the
program could be taken from Reserves or capital projects could be reduced further.
At Chair Danaher's request for an explanation of bond financing, Yuan reported multiple utilities may seek
financing. Developing a bond offering typically takes about three to four months. Abendschein added that
the minimum amount is usually $5 million, but staff should evaluate $10 million. Financing would be across
multiple utilities, but each utility has to pay its share of debt service costs. Chair Danaher proposed staff
evaluate bond financing to accelerate capital projects and save on construction costs. Eliminating the offset
program could send the message that the City will neglect environmental goals to fill budget shortfalls.
In reply to Commissioner Segal's queries about using bond proceeds to pay off existing debt and customer
connections, Yuan was not sure the proceeds could be used for existing debt, but the existing debt could be
refinanced in the new offering. CPAU could save money by refinancing the existing debt, and staff will
evaluate that. Batchelor explained that customer connections are revenue neutral because the customer
pays a fee for a first-time connection to a building or residence. Yuan clarified that the utility bears a portion
of the cost if improvements to the system are made at the same time as the connection. Batchelor reported
before internal crews bore for any type of new service, they have to inspect the sewer line with a video
camera to ensure it was not bored into. All capital projects for replacement services require contractors to
record inspections of sewer lines to prove cross-bores have not occurred. Commissioner Segal suggested
FTTP could be part of a carbon reduction program as it is important for telecommuting. Yuan advised that a
new study will evaluate combining undergrounding, fiber, and electrification into one package for
neighborhoods. In answer to Commissioner Segal's inquiry about the number of customers seeking bill
assistance, Yuan indicated the number of customers applying for assistance has increased but not as much
as staff expected. Some customers have submitted incomplete applications. Staff has asked customers
inquiring about payment arrangements to inquire again when the emergency ends and the total balance due
is known. Donations to ProjectPLEDGE have increased. The number of past-due residential bills has declined
significantly probably because MyCPAU reminds customers of due dates. Staff anticipates the number will
continue to decrease. The number of past-due commercial bills has increased. Commissioner Segal concurred
with comments not to eliminate the gas offset program.
Commissioners reached consensus to continue the gas offset program. Commissioner Smith preferred to
fund the offset program with proceeds from the sale of Bucket 1 RECs. Commissioner Johnston qualified his
support based on Staff finding funding for the program.
Utilities Advisory Commission Minutes Approved on: Page 10 of 11
Commissioners supported bond financing as a means to fund and perhaps accelerate capital projects,
particularly FTTP. Commissioner Smith noted civil infrastructure contractors continue to be extremely busy;
therefore, he did not anticipate a decrease in construction costs.
Commissioners supported a policy change to sell Bucket 1 RECs and purchase Bucket 3 RECs to meet the full
load. Vice Chair Forssell emphasized the importance of framing the issue as replacing Bucket 1 RECs with
Bucket 3 RECs, which are legitimate carbon-reducing entities. Commissioner Johnston hoped the Electric
Utility could return to purchasing Bucket 1 RECs to cover load. Commissioner Segal concurred with
Commissioner Johnston and expressed concern that a drought would reduce potential revenue. Batchelor
advised that the policy would not become effective in June because the Council would have to discuss the
issues and understand that technically the Electric Utility would be carbon neutral but not from a State
perspective. In addition, the Council's break is scheduled for July.
Councilmember Cormack acknowledged the fast pace of changes and the inability to study topics in detail.
The use of Reserve Funds is appropriate. The Council pushed Director Batchelor hard regarding the gas rate
increase, and he admitted the cross-bore and main replacement projects could continue with a 2% rate
increase. She did not believe reducing the scope of the projects would create safety issues. She inquired
about restrictions on the use of Bucket 1 sale proceeds. Abendschein reported funds associated with the
Electric Utility may only be used within the Electric Utility. Otherwise, there are no restrictions on the use of
sale proceeds unless the Council establishes restrictions. Councilmember Cormack emphasized that sale
proceeds cannot fund General Fund expenditures.
ACTION: Commissioner Smith moved to recommend the City Council 1) adopt the Proposed Operating and
Capital Budgets for the Utilities Department for Fiscal Year 2021 with an amendment to reinstate the natural
gas offset program and 2) amend the Carbon Neutral Plan to sell Bucket 1 Renewable Energy Certificates and
purchase Bucket 3 Renewable Energy Certificates. Commissioner Scharff seconded the motion. The motion
carried 7-0 with Chair Danaher, Vice Chair Forssell, and Commissioners Jackson, Johnston, Scharff, Segal and
Smith voting yes.
ITEM 5: ACTION: Selection of Potential Topic(s) for Discussion at Future UAC Meeting.
Chair Danaher requested a discussion of bond financing and updates regarding market rates for capital
projects and a discussion of accelerating the FTTP project. Dean Batchelor, Utilities Director, remarked that
accelerating the FTTP project is unlikely because a new RFP will be required. The selected contractor is
capable of doing a high-level design, which will require six to nine months. The Council will then have to
approve the design and construction, which is Phase 2. Chair Danaher clarified that the contractor should
proceed with design. A detailed discussion of FTTP could surface new ideas. Commissioner Jackson added
that the discussion could be preparation for Phases 3 and 4 of the projects.
Vice Chair Forssell requested gas leakage return as an action item.
Commissioner Scharff requested discussions of the S/CAP, gas offsets, gas leakage, the future of the Gas
Utility, and goals for electrification. Chair Danaher suggested the discussion follow receipt of AECOM's
analysis of S/CAP goals and actions. Commissioner Segal requested the discussion include the City's or CPAU's
ability to mandate behavior versus incentivize and encourage behavior. Jonathan Abendschein, Assistant
Director for Resource Management, advised that S/CAP goals and key actions following the Council discussion
in June could benefit the discussion. Over the summer, staff will conduct some preliminary analyses of the
impacts of rapid decarbonization on the Gas Utility. August or September could be a good time for the
discussion.
Chair Danaher noted agenda items for water and AMI are scheduled for June.
ACTION: None
Utilities Advisory Commission Minutes Approved on: Page 11 of 11
NEXT SCHEDULED MEETING: June 17, 2020
Commissioner Scharff moved to adjourn the meeting. Commissioner Segal seconded the motion. The motion
carried 7-0 with Chair Danaher, Vice Chair Forssell, and Commissioners Jackson, Johnston, Scharff, Segal and
Smith voting yes.
Meeting adjourned at 12:38 p.m.
Respectfully Submitted
Tabatha Boatwright
City of Palo Alto Utilities
Utilities Advisory Commission Minutes Approved on: July 01, 2020 Page 1 of 5
UTILITIES ADVISORY COMMISSION VIRTUAL MEETING
MINUTES OF June 17, 2020 SPECIAL MEETING
Due to technical difficulties the meeting was not recorded.
CALL TO ORDER
Chair Danaher called the meeting of the Utilities Advisory Commission (UAC) to order at 9:04 a.m.
Present: Chair Danaher, Vice Chair Forssell, Commissioners Jackson, Johnston, Scharff (joined at 9:06),
Segal, Smith
Absent: None
ORAL COMMUNICATIONS
None.
APPROVAL OF THE MINUTES
Vice Chair Forssell moved to approve the minutes of the May 20, 2020 meeting. Commissioner Segal
seconded the motion. The motion carried 6-0 with Chair Danaher, Vice Chair Forssell, and Commissioners
Jackson, Johnston, Segal and Smith voting yes, and Commissioner Scharff absent.
AGENDA REVIEW AND REVISIONS
None.
REPORTS FROM COMMISSIONER MEETINGS/EVENTS
None.
UTILITIES DIRECTOR REPORT
Dean Batchelor, Utilities Director, delivered the Utilities Director's Report.
Utility Sales and Delinquencies - Staff has been tracking changes in water, gas, and electric consumption
related to shelter in place. Consumption is currently down across all utilities, though most substantially in
the electric utility.
• Water utility: In the water utility consumption is currently roughly the same as last year, but about
4% to 6% below the last dry year, 2018. We have seen a substantial decrease in small and large
commercial water use compared to 2018, though residential water use is higher.
• Gas utility: In the gas utility consumption has been at or above previous year consumption, except
that gas usage dropped to summer levels early, in early May rather than in the middle of June. This was
primarily due to significant drops in small business gas use. Staff will monitor this summer as shelter in
place restrictions are relaxed to see if usage rebounds.
• Electric utility: Up until the last two weeks electric utility consumption was 8% to 10% lower than
previous years, but in the last two weeks it has rebounded, with consumption similar to previous years.
This may be a short term effect of the warmer weather.
Utilities Advisory Commission Minutes Approved on: July 01, 2020 Page 2 of 5
• Utility Bill Delinquencies: The total dollar balance of utility bills that are between 30 and 90 days
overdue was approximately $750,000 for all utilities, up from $385,000 in late April. This is still well below
the total amount for defaults assumed in the Financial Plans.
Utilities Meter Reading Resumed June 1 - Earlier this year, some meter reading activities were suspended to
comply with state and county Shelter-in-Place orders and to protect the health and safety of our community
members and CPAU staff. With the recent easing of some of these requirements from the county, we
resumed reading all customer utility meters the week of June 1. CPAU staff are being diligent about safety
and abiding by social distancing protocols.
Public Safety Power Shutoffs - Bay Area agencies are meeting with PG&E to discuss the potential for Public
Safety Power Shutoffs (PSPS) this year. The purpose of PSPS is to reduce the risk of wildfire caused by electric
equipment impacted by high winds or other extreme weather events. PG&E will de-energize certain electric
circuits and facilities until risks subside. While PG&E does not directly serve electricity to CPAU customers,
the City intakes electricity from PG&E’s transmission system. The Foothills have been identified as the area
at the greatest risk for potential wildfire and may be the only part of Palo Alto that could lose power if PG&E
implements a PSPS west of highway 280. Palo Alto customers did not experience outages last year from a
PSPS and it is unlikely that an incident will occur this year. CPAU’s practice is to closely monitor our own
power lines and during periods of extreme weather, make decisions about our local operations based on the
safety and best interest of our customers. PG&E has been working on infrastructure upgrades to reduce the
number of customers impacted by power shutoffs and enhancing communication protocols to provide better
notifications to municipal utilities and customers the agency serves. CPAU is also developing outreach
materials to inform our customers about what to expect, including how we will manage our local electric
distribution system and communicate with customers if we anticipate a power shutoff in Palo Alto; either
from PG&E or on our own distribution system. Find details at cityofpaloalto.org/safeutility
CALeVIP Program status update: CPAU is partnering with four agencies in the California Electric Vehicle
Infrastructure Project (CalEVIP) which will provide rebates for electric vehicle charging stations at commercial
customer sites and is scheduled to launch this fall. The state program is administered by the Center for
Sustainable Energy (CSE). The California Energy Commission and CSE will host a workshop on June 23 to
explain the program details. Information is on our website at cityofpaloalto.org/workshops
COVID-19 Update - On Friday, June 5, revisions to the public health order for Santa Clara and other counties
took effect. These revisions relax some restrictions on shelter in place, including allowing socially distanced
small outdoor gatherings, recreation, and expanded business activities. Health officials strongly recommend
that we all stay at home as much as possible and remain in contact with only our family units to try to help
prevent the spread of COVID-19. Face coverings are strongly recommended by the county and still required
in Palo Alto. The county has observed a recent uptick in COVID-19 cases, which is likely related to loosening
restrictions in mid-May. Health officers will continue a regular cadence of making small cautious changes
while observing the data on number of cases, expanding testing opportunities and improving efforts at
contact tracing. The county provides a library of frequently asked questions on its website and is utilizing 211
for the public. Palo Alto continues to update its cityofpaloalto.org/coronavirus webpage with new
information and helpful resources.
Testing: The city and county began offering free voluntary testing for city employees this week at City Hall.
Members of the public are welcome to use these testing services, including non-Palo Alto residents. Testing
is available June 16 through June 19 from 10am to 4pm in the City Hall lobby. The city is also working with
the county to set up mobile testing sites.
Summer Streets: The city is launching a new Summer Streets initiative to expand outdoor dining and retail
options in the California Avenue and downtown core of the city. As of last Thursday, California Avenue is
closed to traffic to allow restaurants and retail establishments to spread out on sidewalks, streets, and
parking areas for social distancing. This temporary closure is in effect through early July and may be extended
longer if deemed necessary. Discussions continue about potentially closing University Avenue as well, but
there is much debate within the business community about this. The city is working through processes for
efficient and effective permitting, encroachment permissions, and safety practices.
Return to Work: City leadership are discussing a variety of options for return to work plans for staff. This
includes developing official policies for on-site versus remote work, administrative leave, and safety protocols
to protect everyone in the workforce. Our Utilities operations, metering and customer service teams have
Utilities Advisory Commission Minutes Approved on: July 01, 2020 Page 3 of 5
resumed much of their typical work while observing social distancing practices. For staff who can effectively
work remotely and remain productive, they will likely continue to do so through the summer or longer. The
timeline for an actual physical reporting in to city facilities is dependent upon further updates from the county
public health officer and our city’s readiness to set up workspaces in order to safely bring employees back.
Budget: City Council continued budget discussions this week in preparation for official adoption of the full
budget on June 22. The city’s finances have been significantly impacted by the COVID-19 pandemic,
particularly in the General Fund. Approximately 100 full-time and part-time staff in other departments face
layoffs. Some of those staff in the SEIU may have “bumping rights” over more junior-level staff with the same
job descriptions. We do not yet know specifically who will be laid off, nor who in SEIU could possibly “bump”
staff in Utilities or other departments. We will do whatever we can to retain our staff.
COMMISSIONER COMMENTS
None.
UNFINISHED BUSINESS
None.
NEW BUSINESS
ITEM 1: DISCUSSION: of Advanced Metering Infrastructure (AMI) Systems and Platforms to Maximize Value
of the Utility’s AMI Investment for Customers
• Did not record some of the early comments and questions – there were questions about wireless
transmission protocols, comments that we should move faster on introducing Phase 2 and Phase 3
features (Slide 15) and various questions about costs>
• Jackson: various questions about TOU rates. Need to communicate to people that TOU is coming. He
wanted to know the exact wireless protocol to be used. He was concerned about people hacking the
meters and using it to discover whether people were home or not, or to turn their services on or off.
• Cormack: be effective about identifying the benefits to the end users and communicating it to them
effectively. Keep the conversation at Council about the benefits rather than about the details of the
system. She agreed with Scharff that Phase 2 and Phase 3 should be accelerated. She asked whether
we were behind. Swaminathan said we were, though the economic benefits to Palo Alto are lower
and he felt this was the right time to do it. Batchelor noted that only one other small POU in Northern
CA had implemented AMI – we were not behind our cohort.
• Segal: Agreed with previous comments. Asked about all-electric rates and whether AMI was required.
Swaminathan said all-electric rates did not require AMI and staff was working on a rate, but at higher
penetrations, AMI would be needed to manage distribution impacts. Jackson speculated it could be
possible to submeter electrified loads and reported separately to charge those uses less. Segal said
if AMI was needed for electrification, we should accelerate the AMI program.
• Smith: Agreed we should advance the schedule for AMI rollout. Asked if CVR (Phase 3) could be
moved up – it seemed less complicated to implement. Swaminathan said that, upon reflection, it
could. Smith asked whether water leak reduction had been incorporated into the cost/benefit
analysis. Swaminathan said it had.
• Forssell: Suggested a group buy for residential customers to get in-home displays and connectors.
Asked about the benefits to commercial customers. Swaminathan spoke about connecting smart
meters to energy management systems and its use in installing efficiency measures.
• Scharff: We need to make sure it is easy for the consumer to take advantage of the system. People
will not go out and buy extra equipment – it needs to be accessible to everyone. Swaminathan said
the myCPAU portal would allow people to access their AMI data (day after), will look at ways to
facilitate the benefits of real-time information.
ACTION: None
Utilities Advisory Commission Minutes Approved on: July 01, 2020 Page 4 of 5
ITEM 2: DISCUSSION: Discussion of 2020 Sustainability and Climate Action Plan Update: Updated Goals and
Key Action
• Christine Luong gave a brief update on the work since the last S/CAP discussion
• Danaher: Make sure micromobility (scooters, e-bikes) is part of the solution. Brought up the example
of scooter charging stations on light poles. Luong highlighted that we were considering a
micromobility pilot before COVID, but it was canceled due to concerns about transmission.
• Johnston: Looking forward the AECOM analysis to get a sense of costs. Encouraged raising prices as
a way to get people to convert, though he acknowledged some of the legal and equity challenges
there. It will also require a massive outreach and education effort to get people to accept this – need
to reach well beyond the minority of people in the community who are already prepared to electrify.
Need to start working on education and outreach right away.
• Smith: We can encourage telecommuting by installing fiber to the home. (Danaher agreed)
• Scharff: Conundrum – do we count offsets? Thinks it is the right thing to do to retain offsets while
getting people to reduce gas use in buildings. We could not actually prohibit people from buying gas
vehicles. Not realistic to expect this can all get done within eight years. Land use and mobility changes
are very, very hard, require a lot of staff time, and it will be difficult to get community buy-in.
Encourages us to be honest with ourselves about how hard this will be.
• Public Comment:
o Colin Roche: Palo Alto High graduate, founded SwiftMile, a micromobility company. Provides
a small vehicle charging system you can attach to public infrastructure (e.g. light poles).
Wants to work with Palo Alto.
• Jackson: In the interest of time, asked that the minutes reflect the comments he e-mailed before the
meeting (see attached), and he would forgo his verbal comments.
• Forssell: Asked why large commercial reduction goals were lower than residential. Tam said
commercial building end uses were much harder to electrify. Forssell noted that the Energy section
was less than 80% from 1990 levels. Abendschein clarified that greater reductions were required
from Mobility and EVs, and less from Energy, and between the three they totaled an 80% from 1990
levels for all emissions. Forssell said that spoke to the importance of calculating the value of upstream
emissions to understand accurately those tradeoffs. She noted it should be OK to have Level 1
chargers in residential locations. She thought a carbon tax or something equivalent would be a good
approach to the problem (or items in the S/CAP with some equivalence to a carbon tax, like paid
public parking), though she understood the potential legal issues with it.
• Segal: Worries about the feasibility of achieving these goals in the time we have before 2030 given
competing priorities. Wondered which of these programs have been implemented elsewhere, and
what were the successes and failures? Looking forward to the AECOM report. Thinks it would be hard
to mandate anything that forces action (e.g. forcing someone to buy a car when they are not
otherwise planning to vs. providing incentives when they are in the market) – would be hard to get
community buy-in. City should lead by example – buy electric vehicles for City fleet, micromobility
for City employees, etc.
• Danaher: Thinks commuting and traffic patterns may shift long term due to the pandemic. Fleets roll
over slowly, so EV adoption will be challenging. We will not get a new fleet by 2030. Offsets are a
viable transition strategy – should talk more about what they accomplish and why they result in real
reductions. Whatever we do, take steps other communities can take as well. Many of these measures
would not be replicable. Re-emphasized the value of micromobility as a measure.
ACTION: None
ITEM 3: DISCUSSION: Discussion of City Water System Operations
Tomm Marshall delivered an overview of the City’s emergency water supply
Utilities Advisory Commission Minutes Approved on: July 01, 2020 Page 5 of 5
ACTION: None
ITEM 4: DISCUSSION: Discussion of the Demand Side Management Report for Fiscal Year 2019
Delayed to the July 1, 2020 UAC meeting in consideration of time.
ACTION: None
NEXT SCHEDULED MEETING: July 1, 2020
Vice Chair Forssell moved to adjourn the meeting. Commissioner Scharff seconded the motion. The motion
carried 7-0 with Chair Danaher, Vice Chair Forssell, and Commissioners Jackson, Johnston, Scharff, Segal and
Smith voting yes.
Meeting adjourned at 12:21 p.m.
Respectfully Submitted
Tabatha Boatwright
City of Palo Alto Utilities
City of Palo Alto
(ID # 11306)Utilities Advisory Commission Staff Report
Report Type: Meeting Date: 6/17/2020
City of Palo Alto Page 1
Summary Title: Overview of Customer Benefits Related to AMI Investments
Title: Discussion of Advanced Metering Infrastructure (AMI) Systems and
Platforms to Maximize Value of the Utility's AMI Investment for Customers
From: City Manager
Lead Department: Ut ilities
Background & Summary
At the March 5, 2020 Utilities Advisory Commission (UAC) meeting, staff updated the
Commission on the scope and timeline associated with the Request for Proposal (RFP) issued to
solicit competitive vendor proposals to implement the Advanced Metering Infrastructure (AMI)
project (Report # 11055). The RFP documents are linked here for reference – RFP #177782 for
Equipment, Software and Services for Advanced Metering Infrastructure Project.
At the meeting, the Commissioners requested staff to return and provide an overview of AMI
systems and platforms to maximize value of AMI investment for customers. The attached
presentation (Attachment A) provides such an overview, as well as a broader overview of plans
for an AMI based Smart Grid Program. Staff seeks Commissioner feedback on the overall AMI-
based Smart Grid Program.
For background, linked below are two prior UAC reports and the consultant report on the AMI
project:
•Report #1: Experience gained via the CustomerConnect AMI pilot program (Sept 2017)
•Report #2: Cost-benefits associated with the AMI based smart grid program (May 2018)
•Report #3: Final Report by AMI Consultants, Smart Grid Assessment and Utilities
Technology Road Map (January 2018)
Resource Impact
The AMI Project is expected to cost approximately $19 million ($10 million for electric, $3.5
million for natural gas and $5.5 million for water). The electric expenditure is anticipated to be
funded by the Electric Special Projects (ESP) reserves. The ESP is also anticipated to loan funds
to the gas and water utilities for the project, which would then be repaid over five -years. A full
assessment of cost and funding sources are provided in Report #2.
Staff: Shiva Swaminathan
Taha Fattah
City of Palo Alto Page 2
Policy Implications
Implementation of AMI project conforms with the 2018 Utilities Strategic Plan (USP) that has
identified implementation of AMI system as a key strategy under USP Priorit y #2 to “Invest in
and utilize technology to enhance customer experience and maximize operational efficiency.”
Stakeholder Engagement
Through the CustomerConnect pilot program, the Palo Alto community members were
engaged on the benefits and need to invest in AMI technology. The UAC, Finance Committee
and City Council have reviewed many facets of the projects over the past few years.
Environmental Review
The UAC’s discussion of the AMI project and its implementation does not constitute a project
under the California Environmental Quality Act (CEQA).
Attachments:
• Attachment A: Maximizing AMI Investment Value for Customers
• Attachment B: RFP Excerpts from AMI Systems Requirements for Prospective Bidders
1
Overview of AMI Systems and Platforms & Ways to Maximize Value of AMI Investment for Customers
- Facilitating Commission Discussion & Input -
Utilities Advisory Commission Meeting
June 17, 2020
Attachment A
STAFF: Shiva Swamanithan
Taha Fattah
2
Presentation Outline
AMI & Project Overview
•Applications of smart grid in Palo Alto
•Lessons learned from CustomerConnect AMI Pilot
Benefits of AMI based Smart Grid Systems in Palo Alto
•Customer value propositions
•Value for CPAU operations
AMI Systems and Platform
•AMI platform and systems integration
•Information security and privacy
•Maximizing value of AMI investment for customers
Next Steps & Input Sought Today
2
3
What is Smart Grid? What does it mean in Palo Alto?
•Use of digital sensing, communication and control technologies to monitor utility
networks and facilitate two-way communication with customers for more effective
and efficient utilization of infrastructure and resources.
•AMI is a foundational enabling technology to:
Maximize the value of customer sited distributed energy resources (DERs), maintain
service reliability as more DERs connect to the distribution grid and meet the community’s
sustainability and GHG reduction goals
Achieve greater energy and water efficiency and conservation to meet community goals
and regulatory mandates
Enable faster detection and restoration of electric outages
Detect and fix water and natural gas leaks, and improve safety
Improved customer experience –timely, relevant, actionable information
Implement advanced customer rates to provide market price signals
3
4
Illustration of Components of a AMI Based Smart Grid System
4
* Network Types: Mesh or Point-to-multi-point
* Gateways are commonly known as collectors
l~ustration of a Mesh Network
• CoUects electric, gas and water meter reads and transmits to gateways
~ Gateways
~ ~mounleCI on uti li ty poles)
I
Utility Provided Appncations
Q
CIS/1BUling
Q
Outage
Management
system
Q
Q,IS
Web Applications
&. Customer Portal
5
History of AMI Evaluations, Projects & Implementation Plan
•Investor Owned Utilities (IOUs) in California implemented AMI for in 2008-2010
•Currently all electric and natural gas IOUs & 50% of Electric POUs have AMI
•Palo Alto analyzed the merits of AMI investment in 2012 & implemented Pilot
Deferred investment until technology matures and economics improves
Implemented a 300 home AMI CustomerConnect Pilot (2013-2018)
o Provided advanced electric, gas, and water meters to customers and
enabled customers to view their hourly consumption on a web-portal –
increased customer awareness of utility usage patterns
o Implemented pilot time-of-use electric rates for EV customers
o Detected and fixed numerous water leaks at customers’ homes with the
help of AMI data
o Gained operational experience
•City Council accepts recommendation to invest in AMI –Sept 2018 5
6
CustomerConnect Pilot –Lessons Learned
6
Customer Value Propositions
•Access to hourly consumption patterns –day after
•Increased awareness of consumption patterns
•Enables customer to switch consumption from high cost (high
GHG emissions) to low cost periods (low GHG emissions)
Net hourly consumption pattern for a customer with solar PV
7
CustomerConnect Pilot –Lessons Learned
7
Customer Value Propositions
•Water leak detection & notification
•Online retail rate comparison tools (TOU vs Tiered Rate)
Online tool to compare customer bill under different retail rate options
8
AMI Benefits (Quantified in AMI Business Case)
8
•Reduction in meter reading cost & meter reader injuries
•Reduction field checks & reduced truck roles to take move-in/out reads
•Timely meter reading and elimination of backyard meter reading
•Improve energy & water conservation due to higher awareness of usage
patterns – by viewing hourly consumption, the day after
•Early detection of water leaks
•Enhance electricity conservation through Conservation Voltage Reduction
•Improved outage response time
9
Other AMI Benefits (Difficult to Quantify for AMI Business Case)
Improved customer experience
Maintain and improve reliability
Gas leak detection & improved safety
Improved system planning capabilities
Improved asset utilization
Timely meter reading
Ability to implement advanced retail
rates, such as all electric or ev rate
Unauthorized use detection
Improved safety/reduced workers’
compensation
Compliance with future legislative
requirements
Receive demand response event alerts
9
10
Potential Smart Devices Within the Home -Maximizing Customer Value
In-home Displays(IHD) connect real
time consumption measurement from
smart meter to the Internet
–Provides access to real-time energy info via
web browser to connected devices
–Requires electric meter to have a second
radio to enable this function
Smart Programmable Controllable
Thermostats (PCTs) can also receive
the real-time electricity info and
control signals (if radio enabled)
Smart plugs enable monitoring and
control the power consumption of
individual appliances
Load control switches to voluntarily
turn on-off devices such as pool
pumps, water heaters, EVs (based on
demand response signals via AMI network or
device vendor enabled via customer Wi-Fi)
10
11
Share Interval Data with Third Parties -Maximizing Customer Value
11
•Green Button or equivalent protocols provide customers their energy usage data
or enables sharing of information in an easy-to-use and standard file format
•Enables participate in 3rd party value added applications (e.g. virtual power plant
concept implementors such as OhmConnect or data sharing via platforms such as UtilityAPI)
Universities and Researchers Software Vendors
Energy Start-Ups Solar and energy storage vendors
Electric Vehicles manufactures and
charger network providers
Demand Response or Virtual Power
Plant concept implementors
•Interval meter data usage and a masked number is transferred to the 3rd party
via secured API interfaces
•To receive this information from the IOU/CCAs, the 3rd party must be
registered with the CPUC and be transparent with how data will be used.
•CPAU has shared masked customer monthly consumption data with
Stanford and Oxford researchers in the past
12
Customer Centric AMI Systems & Platforms
12
Servioe Or ders
From CII S,
B illing
Information
I
I ~ - - ----W o rk Orders._ __
To C IS System --------• t lnnal ler WOMS I
-------,-~,----------I I II I
1 Re p ortmg •
MV RS-lfk~ R at Fi le 0 Al . : cl:
_ _ _ _ _ _ _ Base Maps; _ _ , l V nony m wze ,
• GPS Coordi na t es 1 : J nterval Data
ESRI (City/C PAU)
I I I I
L or Distribution system> ________ ~~~~~~~~~~~::_::_::_::~{ M~ t~-i
Analysis 1 +
,-~~~~~~~~~~~~~~~--I I
1 11'.et e r ·Data
I 1
I I
MyCPAU
I •
I -Custo1mer Portal ~ Customer/ Account/ Bm t---------------"""""f--Payment !I nformation I
I
I
I
AMI Meter Head End
Sy s.te m Software
Currentliy SEW Provides this Service
& llnte,g rates, with O:t:heir Servi.c.es to
Provide S ing'l e -S ign~On Exper-iience to
Customeirs
I
I
I
I
- - ------_ Jnterval Read Data ______ j
. l ' Wire ess and /or fib e r
(fro m GoUectm)
.;
5<T>>
CPAU Integration
with third party
tools
,customer provides
Smart Ene,rgy/Up light,
Water Smart,
EV /PV Calculator
access to,
I
I ..
Third
Party
Apps
13
AMI Communication & Data Storage: Security & Privacy
AMI Wireless Communication Protocols and Security
–Meet all applicable Federal, State, and local regulatory requirements (including, but not limited
to, Federal Communications Commission (FCC Title 47 C.F.R,Part 15 -Radio Frequency Devices),
and applicable ANSI standards
–Support Advanced Encryption Standard (AES) for 256 bit encryption end-to-end; support rolling
encryption keys on a configurable basis
–Support ANSI C12.19/C12.18/C12.22 cryptographic solutions including clear text, plain text and
cipher text communication
Customer Information Privacy & Security
–Meet City’s own Cybersecurity Security Terms and Conditions, and Information Privacy Policy
–Compliance with ISO 27001 Standards, two factory authentication, etc.
More details specifications provided in RFP (see attachment B for excerpts)
13
14
Next Steps
14
•Input from UAC on Project Scope, Customer Platforms/Systems
•AMI Project Decision Making and Implementation Timeline
1.RFP Responses Received June 9th
2.RFP Evaluations completed –Fall
3.Update to UAC –Fall
4.Recommendation on Projects to Council Q1 2021:
•AMI Project ($17-21M)
•Gas and Water Meter Replacement Project ($8 to $12M)
5.Project Approval and Implementation Timeline –Q2 2021
15
Next Steps
15
Phased Approach to Smart Grid Program Implementation
Phases Features Enabled Target Date
1 AMI installation completed, fully automated meter
reading for billing, enable MyCPAU to display AMI data 2024
2 MyCPAU AMI data analytical tools, Enabling 3rd party
Apps, advanced utility rates for customers, Interface with
OMS, proactive AMI data based water/gas leak
detection/repair
2025-27
3 Conservation Voltage Reduction (CVR) Program 2027-29
4 Distribution System Automation 2028+
16
UAC Discussion and Input Today
16
•Scope of AMI Project and Smart Grid Program
•Ways to maximize AMI investment value for customers
•Cybersecurity and privacy topics related to AMI System
•Other
1
Excerpts from AMI RFP Requirements for Prospective Bidders
This document provides excerpts from the requirements set forth in RFP #177782 for Equipment, Software and Services for Advanced Metering
Infrastructure Project in the following areas: 1) Connecting and Integrating AMI System to other CPAU Platforms, 2) AMI communication
network and data storage platform security, 3) Guidelines for locating AMI collectors/Gateways.
1.Connecting/Integrating AMI to other CPAU Platforms
Attachment B
Staff: Shive Swaminathan
Taha Fattah
2
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3
Category Priority Requirement
The Network Platform Shall:
Systems
Integration Critical Support real-time integration methods (e.g., MultiSpeak, SOAP, XML, Restful API,
etc.)
Other
Applications Important Support DNP3 communications protocol for interfacing other process automation
systems components.
Systems
Integration Critical Be capable of interfacing with email and SMS to send alarms or status reports to
designated recipients.
Systems
Integration Critical
Be capable of transferring data to and from the AMI headend and other utility
systems using real-time communication protocols or other common interface
models to ensure transfer of data.
Other
Applications Important Support Modbus communications protocol for interfacing other process automation
systems components.
Other
Applications Important Be capable of communicating with load control devices.
Other
Applications Important
Support a platform to provide connectivity (status) to distribution automation
devices, such as reclosures, capacitors, breakers, transformers, fault indicators,
line load sensors, relays & power measurement devices, etc.
Other
Applications Important Provide a platform to provide connectivity (status and control) to public street
lights and rentable private lighting.
Other
Applications Important Be capable of transmitting data from water monitoring devices, such as for
pressure, temperature, and quality.
Systems
Integration Critical Support real-time communication and protocols for integration to other enterprise
IT systems.
Systems
Integration Critical
Support common information model structures, commercial enterprise application
infrastructure interfaces, and service oriented integration patterns for IT systems
integration the utility's CIS and other enterprise IT systems.
4
Functionality Critical Be available to be retrofit with a KYZ pulse output board without limiting AMI
functionality, for three-phase meters.
Other
Applications Important Be available with an optional Zigbee radio for Personal Area Network (PAN) or
Home Area Network (HAN), for residential meters.
Other
Applications Critical Be available with an optional alternative protocol (non-Zigbee) radio for Personal
Area Network (PAN) or Home Area Network (HAN), for residential meters.
Other
Applications Critical
Be available with a button to enable the Service Disconnect switch to close when
the 'Arm to Connect" option is used for reconnecting service remotely, for
residential meters.
Reporting Critical Incorporate external data (weather, property, climate) into reporting and
analytical reporting tools.
Reporting Nice to
Have
Provide lower resolution (not at individual meter level) outage map to display on
the Utility's external facing website.
5
2. AMI Communication Network and Data Storage Platform Security,
Category Priority Requirement
The Network Platform Shall:
System
Performance
and
Reliability
Critical
Meet all applicable Federal, State, and local regulatory requirements (including,
but not limited to, Federal Communications Commission (FCC Title 47 C.F.R,Part
15 - Radio Frequency Devices), and applicable standards by the American National
Standards Institute (ANSI)).
System
Performance
and
Reliability
Critical Provide mechanisms to minimize or eliminate potential interfere with current
Utility, SCADA, Public Safety or any other current communications system.
System
Performance
and
Reliability
Critical Provide mechanisms to minimize or eliminate potential interfere with current
Utility, SCADA, Public Safety or any other current communications system.
Security Critical Comply with City IT Security Policy, VISA, Data Privacy, and SaaS Agreement.
Security Critical Not store personally-identifiable customer information.
Security Critical Log invalid login attempts; retain 12 months of authentication logs success and
failure.
Security Critical Support Advanced Encryption Standard (AES) for 256 bit encryption end-to-end.
Security Important Support rolling encryption keys on a configurable basis.
Security Critical Support ANSI C12.19/C12.18/C12.22 cryptographic solutions including clear text,
plain text and cipher text communication.
Security Critical Support functions which allow for secure device authentication, registration, and
revocation of registration.
Security Critical Supply mechanisms which audit and store all security related events including all
messages, access, and modification events within the system for 90 days.
6
Security Critical Supply a security audit store which includes the date and time of the event, type
of event, subject identity, and the outcome (success or failure) of the event.
Security Critical Comply with the City's Information Privacy Policy (Attachment N), to be included
in the final contract (as an exhibit).
Security Critical Comply with the City’s Vendor Cybersecurity Terms and Conditions (Attachment
W), to be included in the contract (as an exhibit).
Security Critical Provide Network Layer IP filtering solution to allow access only from the City's IP
address to the Vendor environment (especially hosted for the City).
Security Critical
Securely transfer/process data between the City and the Vendor's environment
through SITE-TO-SITE VPN communication, enhanced with Multi-Factor
Authentication (MFA).
Security Critical
Securely encrypt City’s data during the operational process, hosted at rest, and
the backup stage, at the Vendor's environment (including Vendor’s contracting
organization’s environment)
Security Critical
Offer robust disaster recovery and business continuity solutions with maximum 8
(eight) hours RTO (Recovery Time Objective) (i.e., in the event of a disaster, the
services offered by the Vendor shall not exceed 8 hours downtime).
Security Critical Offer 99.99% up-time in the Service Level Agreement (SLA).
Security Critical
For systems hosted using third-party cloud services, such as AWS, offer a secured,
logically separated IT environment in cloud consistent with the
AWS_Security_Compute_Services_Whitepaper document
(https://d1.awsstatic.com/whitepapers/Security/Security_Compute_Services_Whi
tepaper.pdf).
Security Critical Provision collected metering data to be owned by the utility. This data may not be
used by any other party for any use unless prior authorization/approval is granted.
7
Security Critical Provide a secure login (e.g. authentication with LDAP) in compliance with
ISO27001 to prevent access by unauthorized users.
Security Critical Provide 2FA for system access.
Security Critical Support user authentication and authorization by role in compliance with
ISO27001.
Security Critical
Provide authorized users’ access to audit logs in compliance with ISO27001 that
shall track all changes to interval usage, register meter reads and configuration
data.
Security Critical Secure web interfaces (i.e. ‘https’) and utilize appropriate encryption and
authentication.
Security Critical Secure/encrypt all file transfers to other systems (e.g., via SFTP, AES 256 bit
encryption, RSA key, etc.).
Security Critical Provide Network Layer IP filtering solution to allow access only from the City's IP
address to the Vendor environment (especially hosted for the City).
Security Critical
Securely transfer/process data between the City and the Vendor's environment
through SITE-TO-SITE VPN communication, enhanced with Multi-Factor
Authentication (MFA).
Security Critical
Securely encrypt City’s data during the operational process, hosted at rest, and
the backup stage, at the Vendor's environment (including Vendor’s contracting
organization’s environment)
Security Critical
Offer robust disaster recovery and business continuity solutions with maximum 8
(eight) hours RTO (Recovery Time Objective) (i.e., in the event of a disaster, the
services offered by the Vendor shall not exceed 8 hours downtime).
Security Critical Offer 99.99% up-time in the Service Level Agreement (SLA).
8
Security Critical
For systems hosted using third-party cloud services, such as AWS, offer a secured,
logically separated IT environment in cloud consistent with the
AWS_Security_Compute_Services_Whitepaper document
(https://d1.awsstatic.com/whitepapers/Security/Security_Compute_Services_Whi
tepaper.pdf).
Security Critical Offer IP filtering for all the applications and database access to the Vendor’s
environment and to the cloud environment.
3. Location of AMI collectors
Category Priority Requirement
The Network Platform Shall:
System
Performance
and
Reliability
Critical
Comply with Palo Alto Objective Aesthetic, Noise, and Related Standards for
Wireless Communication Facilities in the Public Rights of Way
(https://cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=72076.31&BlobID=7
3303).
City of Palo Alto (ID # 11403)
Utilities Advisory Commission Staff Report
Report Type: Agenda Items Meeting Date: 6/17/2020
City of Palo Alto Page 1
Summary Title: 2020 S/CAP Update - Additional Goals and Key Actions
Title: Discussion of 2020 Sustainability and Climate Action Plan Update:
Updated Goals and Key Actions
From: City Manager
Lead Department: Utilities
Recommendation
This item is being provided to the Utilities Advisory Commission (UAC) for feedback and
discussion and no action is requested.
Executive Summary
In April 2016, City Council adopted the ambitious goal of reducing GHG emissions to 80 percent
below 1990 levels by 2030, 20 years ahead of the State of California 80 x 50 target. In
November 2016 Council adopted the S/CAP Framework, which has served as the road map for
achieving Palo Alto’s sustainability goals. In December 2017, Council accepted the 2018 -2020
Sustainability Implementation Plan “Key Actions” as a summary of the City’s work program. In
early 2020, the City launched a 2020 S/CAP Update to determine the goals and key actions
needed to meet its sustainability goals, including its goal of reducing GHG emissions 80 percent
below 1990 levels by 2030. Staff drafted 2020 S/CAP Potential Goals and Key Actions as a
starting point for discussion. Since then, the City has solicited feedback from the community
through a virtual on-demand 2020 S/CAP Community Engagement Workshop (March 31 – April
14, 2020), the City of Palo Alto Sustainability website, and at the April 13, 2020 City Council
Meeting. Staff reviewed all feedback received between January 22, 2020 and April 30, 2020 and
incorporated it into updated 2020 S/CAP Proposed Goals and Key Actions. Staff also reviewed
feedback received by the UAC at its May 20, 2020 meeting.
On June 16, 2020 staff requested that Council direct staff to continue with the 2020 S/CAP
Update and evaluate the 2020 S/CAP Potential Major Goals and Key Actions Related to GHG
reduction (Attachment A) before it goes to AECOM for impact analysis. Staff is requesting
additional feedback on these Goals and Key Actions from the UAC at its June 17, 2020 meeting
as well.
Attachments:
•Attachment A: 2020 SCAP Update
Staff: Jonathan Abendschein
City of Palo Alto (ID # 11304)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/8/2020
City of Palo Alto Page 1
Council Priority: Climate/Sustainability and Climate Action Plan,
Tr ansportation and Traffic
Summary Title: 2020 SCAP Update Planning
Title: Direct Staff to Continue with the 2020 Sustainability and Climate Action
Plan (S/CAP) Update and Evaluate the 2020 S/CAP Proposed Goals and Key
Actions
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that City Council direct staff to continue with its work on the 2020
Sustainability and Climate Action Plan (S/CAP) Update and the evaluation of 2020 S/CAP
Potential Major Goals and Key Actions related to greenhouse gas emissions reduction
(Attachment A).
Executive Summary
Consistent with the Council’s adoption of “Sustainability, in the context of climate change” as
one of the top three priorities for CY 2020, Staff is developing a 2020 Sustainability and Climate
Action Plan (S/CAP)Update to help the City meet its sustainability goals, including its goal of
reducing greenhouse gas (GHG) emissions 80 percent below 1990 levels by 2030. Staff
presented the 2020 Sustainability and Climate Action Plan (S/CAP) Update Process1 to Council
at an April 13, 2020 Study Session. Council directed staff to return to Council before the City’s
consultant (AECOM)begins its analysis of Potential Key Actions. Attachment A shows the
Potential Major Goals and Key Actions with the highest potential for reducing GHG emissions.
The Major Goals and Key Actions are intended to ensure that enough emissions and cost data
are prepared to ultimately formulate multiple scenarios to meet the 80 x 30 goal, giving Council
choices among scenario packages.The full list of the Potential Goals and Key Actions, both
those that relate to GHGs and those that relate to other program areas are captured in the
1 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=53475.02&BlobID=76048
Attachment A
City of Palo Alto Page 2
2020 S/CAP Updated Potential Goals and Key Actions DRAFT2. These Potential Goals and Key
Actions were modified based on 109 pages of comments on an earlier version presented to the
community on March 26, 2020.
City Council discussion and feedback will be sought on the Major Goals and Key Actions.In
particular, staff is requesting Council feedback on the level of intervention necessary to achieve
Palo Alto’s S/CAP goals.This will help staff refine the planned approach to community
awareness and engagement.
Background
In April 2016, City Council adopted the ambitious goal of reducing GHG emissions to 80 percent
below 1990 levels by 20303 -20 years ahead of the State of California 80 x 50 target.In
November 2016 Council adopted the S/CAP Framework4, which has served as the road map for
achieving Palo Alto’s sustainability goals. In December 2017, Council accepted the 2018-2020
Sustainability Implementation Plan “Key Actions” as a summary of the City’s work program5.
In early 2020, the City launched a 2020 S/CAP Update to determine the goals and key actions
needed to meet its sustainability goals, including its goal of reducing GHG emissions 80 percent
below 1990 levels by 2030. Staff drafted 2020 S/CAP Potential Goals and Key Actions as a
starting point for discussion. Since then, the City has solicited feedback from the community
through a virtual on-demand 2020 S/CAP Community Engagement Workshop (March 31 –April
14, 2020), the City of Palo Alto Sustainability website, and at the April 13, 2020 City Council
Meeting. Staff reviewed all feedback received between January 22, 2020 and April 30, 2020 and
incorporated it into updated 2020 S/CAP Proposed Goals and Key Actions. Now staff is
proposing that Council direct staff to continue with the 2020 S/CAP Update and evaluate the
2020 S/CAP Potential Major Goals and Key Actions Related to GHG reduction (Attachment A)
before it goes to AECOM for impact analysis.The full list of the Potential Goals and Key Actions,
both those that relate to GHGs and those that relate to other program areas are captured in the
2020 S/CAP Updated Potential Goals and Key Actions DRAFT.
Discussion
For the City to continue progress towards its climate and sustainability goals and targets, a 2020
S/CAP Update is necessary to further study the highest impact actions to take. The 2016 S/CAP
Framework provided direction and overall goals through 2020. The intent was for staff to
update the S/CAP every five years and develop more granular five-year work plans and short-
term programs, rather than attempt to build a detailed 14-year work plan.
In preparation for the 2020 S/CAP Update, staff reviewed the goals and actions in the 2016
S/CAP Framework, the 2018-2020 Sustainability Implementation Plan, the 2018 Zero Waste
2 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=58649.63&BlobID=76860
3 https://www.cityofpaloalto.org/news/displaynews.asp?NewsID=3534&TargetID=268
4 https://www.cityofpaloalto.org/civicax/filebank/documents/60858
5 https://www.cityofpaloalto.org/civicax/filebank/documents/63141
City of Palo Alto Page 3
Plan, the 2030 Comprehensive Plan, the Urban Sustainability Directors Network Greenhouse
Gas Reduction High Impact Practices, and the Carbon Neutral Cities Alliance Game Changers list
to draft 2020 S/CAP Potential Goals and Key Actions. These Potential Goals and Key Actions
were meant to be a starting point for discussion. Staff initiated a community engagement effort
and received feedback between January 22, 2020 and April 30, 2020 on the 2020 S/CAP
Potential Goals and Key Actions from 204 people who participated in the 2020 S/CAP
Community Engagement Virtual Workshop, 7 people who responded to the Virtual Workshop
invite, 3 people who reviewed the materials on the sustainability website, and 21 people who
submitted comments for the April 13 Council Study Session. Staff reviewed 109 pages of
feedback from the community, which included many helpful suggestions for improvement.
Several themes surfaced in the input received:
-The commenters are generally supportive of the 2020 S/CAP and do not want to delay
action on climate change, despite the uncertainties created by the current coronavirus
pandemic.
-The 2020 S/CAP needs to include more aggressive but achievable goals, measurable
targets, and accessible reporting, with more focus on electrifying buildings,
transportation, and equipment.
-The commenters are not supportive of counting natural gas offsets in our overall
greenhouse gas emissions reductions. Offsets are meant to be a bridging strategy and
should be phased out.
-The coronavirus pandemic has shown that it is possible to work from home regularly.
The City should explore remote work strategies as a way to reduce transportation-
related GHG emissions.
-Housing, land use, and education are areas of focus that are missing from the 2020
S/CAP.
A summary of all input received on the 2020 S/CAP Potential Goals and Key Actions and the
2020 S/CAP Community Engagement Virtual Workshop can be found in Attachment B. The full
unedited text of all input received can be found in the Compilation of All Input Provided
between 1/22/2020 to 4/30/20206.
Staff presented the 2020 S/CAP Potential Goals and Key Actions to the Utility Advisory
Commission (UAC) on May 20, 2020. The UAC was generally supportive of the first draft of the
2020 S/CAP Potential Goals and Key Actions and provided several recommendations for
improvement related to electrification of appliances and buildings, including City buildings;
financing tools such as on-bill financing; inclusion of e-bikes, e-scooters, and other personal
electric vehicles in mobility discussions; and electric vehicle group buy programs and
infrastructure. The UAC also posed the questions of how the Key Actions will be financed,
whether we can achieve our targets through incentives alone, and whether natural gas offsets
should count towards our emissions reductions goal. While no action was taken by the UAC on
6 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=68527.83&BlobID=76499
City of Palo Alto Page 4
the 2020 S/CAP Potential Goals and Key Actions, the UAC voted 7-0 to recommend maintaining
the Carbon Neutral Gas Program supplied by carbon offsets as part of another agenda item, the
FY 2021 Budget.
Staff incorporated community input to update the 2020 S/CAP Potential Goals and Key Actions,
which will be the foundation for the 2020 S/CAP. The 2020 S/CAP Potential Goals and Key
Actions cover seven sustainability areas -Energy, Mobility, Electric Vehicles, Water, Climate
Adaptation and Sea Level Rise, Natural Environment, and Zero Waste. While all seven areas are
important, staff is highlighting Potential Major Key Actions in three areas for Council to
evaluate –Energy, Mobility, and Electric Vehicles. Staff is presenting more Key Actions than
needed to get to the 80 X 30 goal,so that Council will have choices in what Key Actions are
ultimately selected.Staff is including Key Actions that will be difficult, expensive, and/or
inconvenient to achieve. Some of these Potential Key Actions will require additional legal
analysis and coordination with other agencies, such as the California Energy Commission,
before being presented to Council for final selection. Others may require voter approval, and
could ultimately be included in a potential Ballot Measure.
Each of the 2020 S/CAP Update Potential Key Actions falls along a Spectrum of Tools for
Achieving Climate Goals (See Figure 1) below. The Spectrum ranges from market-driven
solutions that require low intervention but also low certainty of achievement, such as voluntary
programs, to government-driven solutions that require higher intervention but yield high
certainty of achievement, such as city-wide voter-approved mandates.Once Council directs
staff to proceed with the evaluation of the 2020 S/CAP Potential Goals and Key Actions, our
consultant (AECOM)will estimate the GHG reduction potential,the costs, and the sustainability
co-benefits (such as improved local air quality or reduced cost of living)of the Potential Key
Actions. This impact analysis will provide a range of costs per GHG reductions that will have
various options along the Spectrum of Tools for Achieving Climate Goals. Staff envisions using
the impact analysis to come up with a set of potential Key Actions that allow multiple options to
get us to our 80 x 30 goal, as well as trigger points for when more interventions are needed to
achieve the targets for the Key Actions.
Figure 1. Spectrum of Tools for Achieving Climate Goals
City of Palo Alto Page 5
As an example, City of Palo Alto Utilities currently has several Electrification Programs, one of
which focuses on electric heat pump water heaters. The Heat Pump Water Heater Program
provides rebates for residents to voluntarily replace water heaters with electric heat pump
water heaters. These rebates are an example of a tool with low intervention –the rebates are
voluntary –and low certainty –the number of residents who have voluntarily replaced their
water heaters is far lower than the goal. In order to reach the targeted number of water
heaters that need to be replaced, the City may need to explore development of a Reach Code
Ordinance7 to provide more certainty to meet the target, or whether a mandate would be a
legally viable option to ensure that the target is reached.
It should be noted that should the Council believe that “high” level intervention is needed and
supportable to advance Palo Alto’s S/CAP goals, a different approach to community awareness
and engagement may be warranted. For example, should a 2022 voter measure to finance
electrification (or other purposes) be a possibility, staff could orient our workplan to begin
building community awareness of the value and options for electrification, developing cost
estimates and delivery options,and evaluating voter support for the various forms such a
measure could take.In fact, should a citywide measure for electrification be pursued,
coordination and potential economies of scale with electrical undergrounding and fiber-to-the-
home could also be concurrently evaluated. Staff requests Council discuss and provide feedback
on the potential for such long lead-time strategies.
7 Development of a “Reach Code” ordinance that would exceed California Building Energy Efficiency Standards (the
Energy Code) requires a showing that the measures would be cost effective, and findings by the California Energy
Commission that the proposed Reach Code requires buildings to be designed to use less energy than permitted by
the Energy Code.
City of Palo Alto Page 6
Staff will schedule a Council Study Session in early fall to present the results of the AECOM and
staff analysis.
Stakeholder Engagement
Staff developed, and is implementing,a 2020 S/CAP Update Engagement Plan which identified
relevant stakeholders, proposed materials, and desired meeting milestones and outcomes. Key
steps to date have been a March 31 –April 14, 2020 Community Engagement Virtual Workshop
and an April 13, 2020 Council Study Session.Further, Council reviewed the opportunities for
engagement in the 2020 S/CAP Update Proposed Process and the Community Engagement
section of the 2020 –2021 Sustainability Work Plan.
Policy Implications
The 2020 S/CAP Update aligns with two of the top three Council Priorities for CY 2020:
“Sustainability, in the context of climate change” and “Improving mobility for all.”
Resource Impact
Appropriate resources are already in place to develop the 2020 S/CAP Update. Contract
Number C20176783 With AECOM Technical Services, Inc., for Professional Services Related to
the 2020 Sustainability and Climate Action Plan Update and SB743 Implementation was
approved on February 24, 2020 (CMR 11112). Funding is included in the operating budgets
from City Manager’s Office –Office of Sustainability and the Office of Transportation. Any
additional appropriation of necessary funding is subject to City Council approval.
Environmental Review
Directing staff to continue with the 2020 S/CAP Update does not require California
Environmental Quality Act review, because this action is not a project under section 21065 of
Public Resources Code and section 15378(b)(5) of CEQA Guidelines, as an administrative
governmental activity which will not cause a direct or indirect physical change in the
environment.A CEQA analysis of the Update itself will be presented with the final 2020 S/CAP
Update.
Attachments:
·Attachment A -2020 Sustainability and Climate Action Plan Potential Major Goals and
Key Actions
·Attachment B -Summary of Input on 2020 S/CAP Potential Goals and Key Actions and
Community Engagement Workshop through April 30 2020
Attachment A
Last Updated May 27, 2020
2020 Sustainability and Climate Action Plan
Potential Major Goals and Key Actions
For Greenhouse Gas Reduction
DRAFT
Attachment A
Page 2 of 5
The 2020 Sustainability and Climate Action Plan (S/CAP) Potential Major Goals and Key Actions for
Greenhouse Gas Reduction listed on the following pages are a subset of the full list of updated
2020 S/CAP Potential Goals and Key Actions. Staff is highlighting the 2020 S/CAP Potential Goals
and Key Actions that have the highest potential Greenhouse Gas (GHG) reduction for Council to
evaluate. These Key Actions are from the Energy, Mobility, and Electric Vehicles (EVs)areas.
The 2020 S/CAP Potential Major Key Actions listed in the following pages do not represent all the
work that the City is doing or will be doing related to climate change and sustainability. These are
the actions we will potentially be prioritizing.They are numbered to make it easier to refer to
specific Key Actions and are numbered the same as the Key Actions in the full list of 2020 S/CAP
Potential Goals and Key Actions. They are NOT numbered based on priority.
Each of the 2020 S/CAP Update Potential Key Actions falls along a Spectrum of Tools for Achieving
Climate Goals (See Figure 1) below. The Spectrum ranges from market driven solutions that
require low intervention but also low certainty of achievement, such as voluntary programs, to
government driven solutions that require higher intervention but yield high certainty of
achievement, such as city-wide voter-approved mandates. Once Council provides input on the
updated 2020 S/CAP Potential Goals and Key Actions, a consultant (AECOM) will estimate the GHG
reduction potential, costs, and sustainability co-benefits (such as improved local air quality or
reduced cost of living) of the Potential Key Actions. This impact analysis will provide a range of
costs per GHG reductions that will have various options along the Spectrum of Tools for Achieving
Climate Goals. Staff will use the impact analysis to come up with a set of potential Key Actions that
allow multiple options to get us to our 80 x 30 goal, as well as trigger points for when more
interventions are needed to achieve the targets for the Key Actions.Some of these measures will
require additional legal analysis and potential coordination with other agencies, such as the
California Energy Commission, before being presented to Council for final selection.
Figure 1. Spectrum of Tools for Achieving Climate Goals
Page 3 of 5
POTENTIAL MAJOR GOALS FOR GREENHOUSE GAS REDUCTION
Ü Reduce Greenhouse Gas (GHG)emissions from the direct use of natural gas in Palo
Alto’s building sector by1:
a.40% below 1990 levels by 2030 (or 24% below 2018 level) OR
b.60% below 1990 level by 2030 (or 50% below 2018 level) OR
c.80% below 1990 level by 2030 (or 76% below 2018 level)
Ü Reduce transportation related GHG emissions 80%, from 300,000 MT CO2 e/year to
60,000 MT CO2e /year by:
a.Increasing the mode share for active transportation modes (walking, biking, and
transit) from 19% to 40% of local work trips by 2030
b.Increasing the availability of transit and shared mobility services from 61% to 100%
by 2030 by increasing the proportion of residents within a quarter-mile walkshed
of frequent transit corridors to 30% and by providing on -demand transit options to
the rest of the City
c.Utilizing development regulations and standards to continue creating a housing
density and land use mix that supports transit and non -SOV transportation modes
d.Utilizing pricing, fees, and other program and policy tools to encourage reductions
in GHGs and VMT
Ü Reduce transportation related GHG emissions 80%, from 300,000 MT CO2 e /year to
60,000 MT CO2e /year by:
a.Increasing the EVs registered in Palo Alto from 4,500 (2019) to 42,000 (80% of
vehicles)
b.Increasing the share of EV commute vehicles from single digits to 80% by 2030
c.Develop a public and private charging network to support these levels of EV
penetration.
1 Prior to the AECOM analysis, there are 3 alternative goals to choose from for the Energy Sector, based on 40%,
60% and 80% of GHG reduction from the direct use of natural gas in the building sector. The AECOM analysis will
determine the least cost bundle of GHG reduction measures across the different sectors to meet the 80x30 goal,
which in turn will establish the goal for the Energy sector.
Page 4 of 5
POTENTIAL MAJOR KEY ACTIONS FOR GREENHOUSE GAS REDUCTION2
Energy:Potential Major Key Actions for GHG Reduction
Residential
5.Retrofit all gas wall furnaces in multifamily buildings to electric heat pump systems for space
heating by 2030 (Estimated total reduction of 5,600 MT CO2e)
7.Electrify gas appliances in single family homes upon home sale beginning in 2025
a.Water heating only (Estimated total reduction of 7,800 MT CO2e)
b.Space heating only (Estimated total reduction of 10,800 MT CO2e)
c.Full electrification (Estimated total reduction of 19,600 MT CO2e)
8.Electrify water heating on replacement in all single family homes by 2030 (Estimated total
reduction of 20,000 MT CO2e)
9.Phase out fossil fuel use in existing buildings starting with areas that have older gas lines that
need to be repaired or replaced. Disconnect natural gas distribution service to residential areas
by 2030.
a.Target only single family homes with PVC gas line (Estimated total reduction of 1,400
MT CO2e)
b.Target 50% of single family homes (Estimated total reduction of 24,500 MT CO2e)
c.Target 50% of residential buildings (Estimated total reduction of 36,000 MT CO2e)
d.Target 100% of single family homes (Estimated total reduction of 49,000 MT CO2e)
e.Target 100% of residential buildings by 2030 (Estimated total reduction of 72,000 MT
CO2e)
Non-Residential
11.Electrify water heating and space heating in all K-12 facilities by 2030 (Estimated total
reduction of 3,300 MT CO2e)
12.Convert all rooftop gas packs on non-residential buildings to electric heat pump systems by
2030 (Estimated total reduction of 1,100 MT CO2e)
13.Require all-electric non-residential new construction projects starting in 20213 (Estimated total
reduction of 2,300 MT CO2e)
14.Electrify 80% of existing city-owned buildings by 2030
15.Require all commercial buildings above 25,000 sq ft to meet a carbon emissions intensity target
by occupancy class with a goal of reducing carbon emissions by 40%4 (Estimated total reduction
of 16,200 MT CO2e)
2 A Consultant, AECOM,will determine the GHG reductions and associated costs for each of these Key Actions.
3 City Council adopted an all-electric mandate for residential new construction projects effective 4/1/2020. Expanding
this mandate to non-residential construction will require an additional cost effectiveness study and coordination with
the CEC.Estimated total reduction of 2,100 MT CO2e
4 Buildings > 25,000 sqft represent 75% of total nonresidential square footage in Palo Alto, or around 19,000,000 total
sqft. This strategy is modeled after NYC’s Local Law 97 (Building Emissions Law)and may need a Green Building Code
amendment.
Page 5 of 5
Mobility: Potential Major Key Actions for GHG Reduction
1.Reduce the current transportation mode split of 64%5 Single Occupancy Vehicle (SOV) use for
work trips to increase active transportation modes (walking, biking, and transit) by
implementing the Bicycle + Pedestrian Transportation Plan, the Complete Streets policy, Vision
Zero, and other programs to create safe streets for all road users, particularly vulnerable road
users
2.Reduce SOV use by eliminating free parking and adjusting parking requirements
3.Implement key transportation Capital Improvement Projects to significantly increase transit
use coverage, service quality, frequency, speed and/or access
4.Enhance traffic signals to improve traffic flow and reduce idling and associated GHG emissions.
5.Update and strengthen public and private Transportation Demand Management (TDM)
programs
g.Reduce Vehicle Miles of Travel (VMT) by mandating telework two days per week. (Includes
both new and existing development.)
6.Use land use strategies to reduce VMT
d.Accommodate new housing and employment growth in areas walkable to retail and
Caltrain or corridors that meet requirements for VTA-provided transit via zoning standards,
consistent with state law.
Electric Vehicles: Potential Major Key Actions for GHG Reduction
3.Continue to electrify municipal fleet as opportunities arise, and by 2021 develop a comprehensive
fleet electrification workplan and associated EV charging needs6.Replace City’s fleet vehicles with
EVs at end of life, whenever suitable EVs are available in the market.7 (Estimated total reduction
of 250 -500 MT CO2e/yr)
10.Require at least 50% of all parking spaces at Palo Alto’s 800+ multi-family properties (~10,000
units) install EV chargers, with the City providing rebates and technical assistance.
11.Require an appropriate percentage of EV charger installations at all commercial parking spots.
(e.g. 25 to 50% of all parking spaces)
12.Consider a Palo Alto-specific Internal Combustion Engine (ICE)vehicle fee, tax and/or assessment
to provide a disincentive for the ownership or use of a fossil fuel vehicle. Consider application of
the fee, tax, or assessment to both residential households and workplaces8 and utilize the
revenue to incentivize VMT reduction and EV adoption.9
13.Require private bus fleets serving Palo Alto office campuses to electrify by 2030.
14.Evaluate programs to reduce the number of fossil fuel vehicles in Palo Alto. Ban the registration
of gasoline vehicles in Palo Alto by 2030. (Estimated total reduction of 150,000 MT CO2e/yr)
5 US Census, American Community Survey, 5-Year Estimates, 2018
6 Study would assess what it would take to electrify 252 Light Duty Vehicles (LDV) in the City fleet -including needs of
Police and Fire LDV, age of vehicles and replacement timelines, budgets, location and # of necessary EVSE’s and
staffing availability to implement projects
7 This is the emission reduction potential if 90% of 252 Light Duty Vehicles could be electrified. Due to lower miles
traveled by city vehicles, each vehicle switched assumed to lower GHG by 1 to 2 MT/year.
8 For example, a residential assessment or tax might apply to each household unless they produce evidence of EV
ownership or attest to not owning a vehicle. A workplace fee might be imposed on gasoline vehicles parking at a
workplace under a transportation demand management program.
9 For example, a $50/month fee, on the estimated 50,000 vehicles driving into Palo Alto, could raise $30 million/year
Attachment B
Input on the 2020 Sustainability and Climate Action Plan Potential
Goals and Key Actions, and Community Engagement Workshop #1
-Summary of All Input Provided between 1/22/2020 to 4/30/2020
In early 2020, the City of Palo Alto launched a 2020 Sustainability and Climate Action Plan (S/CAP)
Update to determine the Goals and Key Actions needed to meet its sustainability goals, including its goal
of reducing greenhouse gas (GHG) emissions 80 percent below 1990 levels by 2030. City staff proposed
priorities in seven areas: Energy, Mobility, Electric Vehicles, Water, Climate Adaptation and Sea Level
Rise, Natural Environment, and Zero Waste, which are summarized in the 2020 Sustainability and
Climate Action Plan Potential Areas and Priorities document (More details can be found in Staff Report
10941). After reviewing different City of Palo Alto Plans and external Climate Action Plans, Staff drafted
2020 S/CAP Potential Goals and Key Actions as a starting point for discussion. Since then, the City
solicited feedback from the community through a virtual on-demand 2020 S/CAP Community
Engagement Workshop (March 31 –April 14, 2020), the City of Palo Alto Sustainability website
(http://cityofpaloalto.org/sustainabilityplan),and at the April 13, 2020 City Council Study Session (More
details can be found in Staff Report 11201). Staff received feedback from 204 people who participated in
the Virtual Workshop, 7 people who responded to the Virtual Workshop invite, 3 people who reviewed
the materials on the website, and 21 people who submitted comments for the April 13 Council Meeting.
Staff received 109 pages of feedback from the community between January 22, 2020 and April 30, 2020,
including many helpful suggestions for improvement. Several themes surfaced in the input received:
-The commenters are generally supportive of the 2020 S/CAP and do not want to delay action on
climate change, despite the uncertainties created by the current coronavirus pandemic.
-The 2020 S/CAP needs to include more aggressive but achievable goals, measurable targets, and
accessible reporting, with more focus on electrifying buildings, transportation, and equipment.
-The commenters are not supportive of counting natural gas offsets in our overall greenhouse
gas emissions reductions. Offsets are meant to be a bridging strategy and should be phased out.
-The coronavirus pandemic has shown that it is possible to work from home regularly. The City
should explore remote work strategies as a way to reduce transportation-related GHG emissions.
-Housing, land use, and education are areas of focus that are missing from the 2020 S/CAP.
-The commenters appreciated the opportunity to provide input on the 2020 S/CAP Potential
Goals and Key Actions, but would have preferred a webinar with an option to pause, rewind,
and fast-forward with a link to a survey,over the ability to provide feedback during the webinar.
Staff are incorporating the feedback received to-date and will post an updated version of the 2020
S/CAP Potential Goals and Key Actions on our website for further input. In addition, Staff will bring the
updated list to City Council in early June, to review before it goes to AECOM for an impact analysis to
estimate the GHG reduction potential of the proposed actions,estimated costs,and additional
sustainability co-benefits (such as improved local air quality or reduced cost of living).We hope to host a
2020 S/CAP Summit in the early fall to prioritize which of the Key Actions are needed to get us to our 80
x 30 goal & other goals so that we can draft the 2020 S/CAP by the end of the year.
The following pages include a longer summary of the input provided between January 22, 2020 and April
30, 2020. The full unedited text of all input provided can be found here1.
1 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=68527.83&BlobID=76499
Go Back to Contents Page Page 2 of 30
Contents –Summary of Input provided between 1/22/2020 to 4/30/2020
(You can jump to any of the highlighted sections by hovering your mouse over the section and
holding down CTRL while clicking on your mouse)
-General Feedback
o Supportive Feedback
o Items that Need to Be Addressed
o Suggestions for Improvement
o 80 x 30 Goal
o Airport
o Education
o Housing
o Webinar Feedback
-Energy
o Feedback on Potential Goals
o Suggestions for New Goals
o Potential Key Actions to explore
further
o Feedback on Potential Key Actions
o Suggestions for New Key Actions
o General Feedback
-Mobility
o Feedback on Potential Goals
o Suggestions for New Goals
o Potential Key Actions to explore
further
o Feedback on Potential Key Actions
o Suggestions for New Key Actions
o General Feedback
-Electric Vehicles
o Feedback on Potential Goals
o Suggestions for New Goals
o Potential Key Actions to explore
further
o Feedback on Potential Key Actions
o Suggestions for New Key Actions
o General Feedback
-Water
o Feedback on Potential Goals
o Suggestions for New Goals
o Potential Key Actions to explore
further
o Feedback on Potential Key Actions
o Suggestions for New Key Actions
o General Feedback
-Climate Adaptation and Sea Level Rise
o Feedback on Potential Goals
o Suggestions for New Goals
o Potential Key Actions to explore
further
o Feedback on Potential Key Actions
o Suggestions for New Key Actions
o General Feedback
-Natural Environment
o Feedback on Potential Goals
o Suggestions for New Goals
o Potential Key Actions to explore
further
o Feedback on Potential Key Actions
o Suggestions for New Key Actions
o General Feedback
-Zero Waste
o Feedback on Goals
o Key Actions to explore further
o Feedback on Key Actions
o Suggestions for New Key Actions
o General Feedback
Go Back to Contents Page Page 3 of 30
General Feedback
Supportive Feedback
·Climate Change is urgent, and action is needed now.Addressing climate change must remain a top
priority for Palo Alto.(+ 16 similar comments)
·I support the Sustainability and Climate Action Plan (+ 12 similar comments)
·There are similarities between the pandemic and the climate crisis (and listening to scientists).
Both are worldwide problems where local corrective measures are needed. In both cases early
actions are needed to get the problems under control.(+ 3 similar comments)
·Thank you for your time and effort in working on this, especially in light of the difficult
circumstances that we are all in right now due to the pandemic. (+ 2 similar comments)
·The impacts of city initiatives have ripple impacts that are orders of magnitude greater than the
direct GHG reductions within Palo Alto.
·We are pleased that staff has adopted the philosophy of SMART goals (Specific, Measurable,
Achievable, Relevant, Time-Bound).
·Sustainability means walkability, workability, rentability and SHARING.Sustainability means we
have to house, at least, seniors,local essential workers, homeless AND more.
·The City municipal accomplishments seem robust.
Items that need to be addressed
·Palo Alto's natural gas emissions and overall emissions have remained relatively unchanged from
2013 to 2018 (without offsets). Palo Alto should shift its emphasis towards real emissions
reductions within City boundaries, rather than bridging strategies such as offsets, with a timeline
for when offsets will be phased out.(+ 14 similar comments)
·Present programs that can actually reach our GHG reduction goals. The City should measure all
fossil fuel reduction programs against meaningful annual targets. (+ 6 similar comments)
·Follow the strategies of the 2016 S/CAP, specifically with respect to transportation and
electrification. (+ 1 similar comment)
·There are many more important items to deal with. We should be addressing the REAL needs of
society and not elitist action to address hypothetical, computer modeled climate change.(+ 1
similar comment)
·Palo Alto’s “sustainability” goals are not realistic.Doing away with natural gas for heating and
fireplaces is not practical, any more than expecting all cars to be EV by 2030.
·Unless Palo Alto's actions can be repeated by other communities, we are too small to make a real
difference
·Educate residents about the pollution they create and the magnitude of the consequences.
·The finance committee has a general investment principle that encourages some amount of
divestment from fossil fuel content in the City's holdings, but more actionable goals around fossil
free finance are needed going forward.
·Palo Alto's general planning/zoning process has led to a segregated community split between
"residential" and "industrial/commercial." There should be more mixed-use developments and
denser housing near transportation to minimize transit, encourage resilience, and reduce GHGs.
·Cement is the source of about 8% of the world's carbon dioxide (CO2) emissions. Why aren’t we
requiring the use of CO2 trapping cement?
Go Back to Contents Page Page 4 of 30
Suggestions for Improvement
·Include big (but achievable) numbers for each goal, a range of key actions to support them, and
clear metrics and measurable targets, with transparent reporting. (+ 18 similar comments)
·Make the use of all gasoline powered equipment, aside from automobiles, illegal with proper
enforcement.(+ 4 similar comments)
·Greatly enhance community involvement and input in the planning process, with annual study
sessions with Council.(+ 3 similar comments)
·Adopt a metric of dollars per carbon unit avoidance, including increasing energy efficiency
investments –the most cost-effective ways to reduce GHG emissions. (+ 2 similar comments)
·Continue to grow resources such as Cool Block which foster neighborhood interaction and
behavior change while building community.Provide more online tools and data so households can
track their footprints and understand ways to reduce their impacts.(+2 similar comments)
·Prohibit burning of firewood.(+ 1 similar comment)
·Develop a holistic Plan that simultaneously addresses GHG reduction, increased resilience,
enhanced emergency response, and public health goals.(+ 1 similar comment)
·Integrate sustainability in City operations. State how Capital Improvement Projects address 2020
S/CAP Goals and including a sustainability section in staff reports. (+ 1 similar comment)
·Review other Climate Action Plans and coordinate regional efforts (+ 1 similar comment)
·Include options that work for lower-income people, renters, and people in multi-unit housing.
·Be careful about the reliability of our power (even a perception problem can hurt adoption of
electric water heaters and especially space heaters).
·Contemplate whether a golf course and/or a city airport are compatible with our vision of a
sustainable city. It's not clear we are being good stewards of the space we have.
·Build relationships with organizations engaged with the same issues.
·Utilize City Commissions as a conduit for community feedback for each of the sustainability areas
during the community engagement cycle.Develop a communication strategy to ensure effective
coordination and cooperative effort between various commissions, staff, and City Council.
·Implement programs that leverage resources beyond city staff with a focus on near term
implementation of the on-bill financing program for retrofit electrification of existing buildings.
·Safer chemicals (and safer materials, more broadly) is an area of focus that should be added as a
standalone part of the plan on the same level as energy, mobility, water, etc.
·Prohibit construction of basements.
80 x 30 Goal
·The goal of 80% reduction of GHG’s by 2030 is reasonable. However, we need to be very
aggressive to get there. (+ 3 similar comments)
·2050 seems like a more likely goal to achieve GHG emission limits without causing a serious
economic dislocation. (+ 3 similar comments)
·Many of these climate goals require funding. Consider a municipal carbon tax to fund climate
mitigation and new programs.(+ 1 similar comment)
·Consider a “reach goal” of 100 x 30 rather than 80 x 30.
·Consider explaining how non-incremental policies (policies that reduce > 10%) will be required to
achieve 80 x 30. Non-incremental policies often require difficult-to-enact legal mandates.
Go Back to Contents Page Page 5 of 30
·Consider dedicating staff for leadership among nearby cities, the county, and the region to
advocate for non-incremental policies. Some policies will be easier to enact regionally.
·Consider polling residents on different baskets of policies (with different forecasted 2030 GHG
reductions),including Business As Usual.
·Backcast from 80 x 30. Work backwards to identify policies and programs that will get us there.
Airport
·Acknowledge the full environmental cost of running the airport, especially with regard to the
greatest local impact: training operations that involve circling planes practicing take-off/landing
for hours on end.
·No effort or progress has been made to ban the sale of leaded aviation gas at Palo Alto Airport.
·Add jet emissions as part of the climate priority and prioritize airplane noise in 2020.
Education
·Prioritize education as part of the S/CAP and create a multi-faceted educational campaign (+3
similar comments)
·Hang a big banner down from City Hall,using a tree outline to signify our progress towards 80 x
30. Every six months, color in more branches, until our "Palo Alto goal" is filled in completely.
Housing
·The built environment and land use, including policies for increasing affordable housing and
supporting urban infill,should be included and integrated into the S/CAP (+ 9 similar comments)
·While urban infill in general is important, ADU and JADU construction should be included in the
S/CAP. In addition to its climate benefits, this is a substantially less expensive and faster to market
approach than large projects for both more and more affordable housing.(+ 1 similar comment)
Webinar Feedback
·Thank you for all the effort you put into the virtual Community Engagement Workshop and the
innovative approach you have taken to get community input,despite the challenges of our current
COVID-19 emergency. (+ 16 similar comments)
·It would help a lot if you could pause and rewind the webinars. (+ 13 similar comments)
·Indicate how much time is remaining in the webinar (+1 similar comment)
·8-minute videos are great, very nice size and easy to do.
Energy
Potential Goals
Ü Reduce greenhouse gas emissions from the direct use of natural gas in Palo Alto’s building sector
by 40% below 1990 levels by 2030
Ü Increase Heat Pump Water Heater adoption to 25% by 2030
Ü Increase all-Electric homes to 20% of all residential single-family homes by 2030
Go Back to Contents Page Page 6 of 30
Energy: Feedback on Potential Goals
·The goals need to be more ambitious (+ 2 similar comments)
·These are very ambitious goals, but are they realistic? (+ 1 similar comment)
·We seem to be prioritizing the most expensive options, and options that do not apply to renters or
people in larger buildings. (+ 1 similar comment)
·Residents are increasingly concerned with the reliability of our electricity, and that will make
conservation and efficiency more appealing than electrification. (+ 1 similar comment)
·While ambitious, these goals are doable and essential.
Ü Reduce greenhouse gas emissions from the direct use of natural gas in Palo Alto’s building sector by
40% below 1990 levels by 2030
·This goal should be more aggressive. 70% by 2030 or reaching 40% earlier (+ 1 similar comment)
·Do not eliminate natural gas in homes for heating, cooking and hot water. The other options are
not cost effective. Natural gas is an important backup to electricity and is the preferred method to
cook for many. A better option is to replace natural gas with renewable natural gas.(+ 2 similar
comments)
Ü Increase Heat Pump Water Heater adoption to 25% by 2030
·Do you mean 25% of new water heaters are heat pump or ALL are by 2030? Is this residential only
or also commercial? Need clarification. (+ 1 similar comment)
·The Heat Pump Water Heater (HPWH) adoption rate should be 70% not 25%. All water heaters,on
failure, must be required to be replaced with a HPWH when possible. (+ 1 similar comment)
·An infrastructure of reliable and available plumbing and electrical contractors for this conversion
work needs to be developed. (+ 2 similar comments)
·The HPWH goal is good, but not all homes can use HPWH and Heat Pump heaters.
·Heat Pump Water Heater conversion is an important component of reducing natural gas usage,
but based on personal experience, it's not an easy sell and it's not so easy to get done.
Ü Increase all-Electric homes to 20% of all residential single-family homes by 2030
·This goal needs to be more aggressive to make a difference.(+ 1 similar comment)
Energy: Suggestions for New Goals
·Increase use of Renewable Natural Gas (Biomethane) to replace conventional Natural Gas usage
(20% by 2030)
·Goal around efficiency and/or conservation, except as implied by the 40% reduction goal.
·Goal around retrofit electrification, not just new building electrification.
·1 house in 10 (proportionately for other buildings) have the energy to power a refrigerator, water
pump, and emergency communications.
Go Back to Contents Page Page 7 of 30
Energy: Potential Key Actions to explore further
(These potential Key Actions do not represent all the work that the City is doing or will be doing related
to climate change and sustainability. These are the actions we will be prioritizing. They are numbered to
make it easier to refer to specific Actions. They are NOT numbered based on priority.)
# of Votes Potential Key Actions
5 1.Meet or exceed City Council-adopted energy efficiency targets
7 2.Explore electrification of city-owned facilities with the goal of phasing out fossil fuel
use in existing municipal buildings
9 3.Phase out fossil fuel use in new and existing buildings through a combination of
programs & mandates (includes partnerships and collaborations to support market
transformation)
4 4.Increase awareness and adoption of efficient electric alternatives to gas appliances
and all-electric buildings through community engagement
3 5.Implement an all-electric utility rate
8 6.Explore opportunities to increase energy resilience (e.g. energy storage, microgrids)
3 7.Explore the impact of building decarbonization on City’s gas utility and develop
mitigation strategies
2 8.Continue to purchase carbon offsets to match natural gas emissions as a transitional
measure. Evaluate potential local offset purchases
Energy: Feedback on Potential Key Actions
·Given that furnaces last 30 years, and an estimated 800 gas furnaces are replaced in Palo Alto
every year, what is Palo Alto's plan to convert 40% of furnaces to heat pumps by 2030?
·Widespread adoption of heat pumps and all-electric homes requires ways to make it easier for
homes to increase their electrical capacity.
·We need to mandate some of these measures in order to meet our goal.
·Focus exclusively on space and water heating and ignore appliances, which have relatively little
impact. An easy action is detecting and repairing leaks (pipelines, gas meters).
·I am very much opposed to the Action Items that are aimed to phase out natural gas appliances
and natural gas usage in homes.
1.Meet or exceed City Council-adopted energy efficiency targets
·Increase energy efficiency wherever possible (+ 2 similar comments)
2.Explore electrification of city-owned facilities with the goal of phasing out fossil fuel use in existing
municipal buildings
·Change "Explore electrification of city-owned facilities" to "Electrify City-owned facilities"(+ 3
similar comments)
·Electrifying municipal buildings will give staff firsthand experience of the hurdles to do so.
·Amend #2 to also explore use of renewable natural gas (Biomethane) in concert with
electrification efforts, with goal of phasing out fossil fuel use in existing municipal buildings
Go Back to Contents Page Page 8 of 30
3.Phase out fossil fuel use in new and existing buildings through a combination of programs &
mandates (includes partnerships and collaborations to support market transformation)
·The most important Key Action is the phase out of fossil fuel use in residential and commercial
buildings, including new construction, remodels, and appliances. (+ 11 similar comments)
·Well-intentioned electrification policies such as natural gas bans in new construction will leave
many seniors, lower income residents, and renters responsible for outstanding costs of
maintaining legacy natural gas delivery systems (+ 2 similar comments).
·Incentivize retrofits from natural gas to electric by providing concrete steps and making it cost
effective. Consider raising natural gas utility fees to show the environmental cost of usage (based
on the Reach Code discussions). (+ 1 similar comment)
·Add “Ensure that installation of rooftop solar panels does not result in loss of existing trees.”
·Do not move away from natural gas for heating and cooking. It's too expensive for limited benefits.
·Train CPAU staff to install retrofits and assist residents in planning their retrofits.
4.Increase awareness and adoption of efficient electric alternatives to gas appliances and all-electric
buildings through community engagement
·Take advantage of existing community partners such as non-profits.
·In addition to awareness, we should be working on funding support.
5.Implement an all-electric utility rate
·We strongly support an all-electric utility rate (+ 1 similar comment)
·The city should also consider changing the solar net meter rates to the old net meter program
(more favorable) for homes that go all electric as an incentive to do so.
·This is redundant and regressive. It would disproportionately hurt those living in older dual fuel
homes and require seniors and lower income residents to pay more to keep the existing
infrastructure properly maintained. It is a misguided policy.
6.Explore opportunities to increase energy resilience (e.g. energy storage, microgrids)
·Transition to more distributed energy systems (microgrids) and local storage that support the
integration of renewable energy technologies.This will result in reduction of GHG emissions and
improve the resiliency of our power system. (+ 5 similar comments)
·Explore ways to make energy storage more affordable, including piloting approaches for using
electricity stored in EVs during supply disruptions or natural emergencies. (+ 1 similar comment)
·Include local solar farms in these opportunities. Developing methods to allow for both solar panels
and trees can be achieved by batching solar panels in local solar farms.
7.Explore the impact of building decarbonization on City’s gas utility and develop mitigation strategies
·Add: for the phasing out of the city gas system to the home.
·Consider (during exploration of impact on City's gas utility) the benefits of replacing conventional
natural gas with renewable natural gas as a renewable source of baseload power.
Go Back to Contents Page Page 9 of 30
8.Continue to purchase carbon offsets to match natural gas emissions as a transitional measure.
Evaluate potential local offset purchases
·Continue efforts to meet emission reduction goals without relying on natural gas offsets. (+ 7
similar comments)
·Reword: “Shift the primary strategy to reduce natural gas emissions from carbon offsets to real-
world infrastructure emission reductions within the City.”
·Put the funds used for purchasing offsets into an aggressive retrofit program to switch out gas-
burning water-and space heaters, stoves, clothes dryers, and industrial scale equipment.
Energy: Suggestions for New Key Actions
·Add an action around conservation (e.g., lowering the thermostat), and other universal solutions
with low upfront cost.
·Add an action about understanding the barriers to electrification to determine the best programs
and incentives to drive electrification.
·Evaluate whether or not key actions are proving useful or impossible to meet. Maybe the need for
carbon offsets means there is a problem with the goal that carbon offsets are meant to meet.
·New homes should be wired so that an EV can run the house, known as “home to grid”.
·More effort on distributed PV
Energy: General Feedback
·Undertake a plan to phase out all natural gas use and eliminate the old and likely leaking gas pipes
that are threaded under our streets. (+ 3 similar comments)
·Streamline the permitting process and reduce fees for retrofit permits. Some contractors will not
work in Palo Alto due to the burdensome permitting process. (+ 2 similar comments)
·On bill financing for HPWH and space heating of homes will be critical in getting electrification of
existing homes to happen. (+ 2 similar comments)
·Local renewable energy production, including domestic solar, is an important priority for reducing
both building and transportation GHG emissions. (+ 2 similar comments)
·Passionate advocates who believe climate change must be tackled quickly at any cost may be less
receptive to hearing that transitioning generation resources will take time or that innovations by
natural gas suppliers and equipment manufacturers may, in some cases, actually reduce GHG
emissions sooner. Enable consumer choice and avoid coercion. (+ 2 similar comments)
·Electrify everything does not take into account that our electricity overnight comes from gas
generation. (+ 2 similar comments)
·It is better to use all sorts of energy as opposed to just electric. If there is an issue with the electric
grid we have another source of energy.(+ 1 similar comment)
·Promote the installation of solar water heating systems.(+ 1 similar comment)
·Palo Alto should strive to reduce ALL Energy use, not only energy from fossil fuels.
·Focus electrification incentives and mandates on high consumption facilities.
·The #1 thing Palo Alto can do to mitigate building-related climate change is “negawatts” –
dramatically increasing building energy efficiency.
·We would truly be innovative leaders if we support biogas, anaerobic digestion, or pyrolysis which
have other environmental benefits. Maintain the Measure E site as a possible location.
Go Back to Contents Page Page 10 of 30
·Palo Alto is one of only a few cities in California to not have Advanced Meter Infrastructure.
·Palo Alto needs to have true accounting for natural gas use. The global warming potential for
natural gas should be 86 times that of CO2 (not 20) and natural gas leakage must also be
accounted for including the entire natural gas supply chain and not just within city boundaries.
·Standardize Palo Alto’s building codes to match those in PG&E’s area to reduce retrofit costs.
·Set up a group buy discount for heat pump water heaters, space-heaters, stove tops,and dryers.
·Enforce Palo Alto laws forbidding natural gas leaf blowers.
Mobility
Potential Goals
Ü Increase active transportation mode share to 25% for local work trips by 2030
Ü Increase availability of transit and shared mobility services by increasing to 75% the proportion of
residents within a quarter-mile walkshed of frequent transit by 2030
Ü Implement Complete Streets and build out the Bicycle and Pedestrian Transportation Plan
Mobility: Feedback on Potential Goals
·These are great goals (+ 5 similar comments)
·The top goal here should be better supporting e-bikes, scooters, and bikes, which are relatively
quick, and are quite usable by many in our flat, temperate area (+ 1 similar comment).
·This could be simplified to a single “Reducing the number of SOV mode use/VMT by X (eg 80%)”
with supportive sub goals as appropriate.
·There are no specific targets that directly tie these goals and actions to measurable results.
·Transit and "shared mobility services" should not be lumped together; they serve vastly different
audiences and the priority should be transit, resulting in a reduced percentage of people driving.
·This doesn't take into account EVs if the goals are to reduce climate change.
·We will never reduce our transportation emissions enough until we build more housing near
transit, and more housing in general. Climate goals and housing goals are completely linked.
·Stop building more parking structures. That money should be used to implement these goals.
·The city should not spend any more time and money on bicycle plans and implementations.
Ü Increase active transportation mode share to 25% for local work trips by 2030
·These are great goals (+ 5 similar comments)
·Please explain what active transportation mode share means (+ 5 similar comments)
·The 10% mode share goal for 2020 was not reached. What will be done differently to achieve the
25% mode share goal for 2030?
·Active Transportation needs more of a carrot (vs stick) approach. We need a green network of
walkable and bikeable streets where cars are the LAST priority.
·Goals should be directed towards commuters coming into Palo Alto from other cities. One
possibility is to tax local businesses based on the number of drivers commuting to Palo Alto.
Ü Increase availability of transit and shared mobility services by increasing to 75% the proportion of
residents within a quarter-mile walkshed of frequent transit by 2030
Go Back to Contents Page Page 11 of 30
·This is a good goal, but public transportation has been poor for a long time in Palo Alto, and
service needs to be every 15 minutes (+ 1 similar comment).
·What percentage of the population does this comes out to be (1/4 mile of transit)? Adjust if
necessary,with real GHG reduction numbers so this can be tracked.
Ü Implement Complete Streets and build out the Bicycle and Pedestrian Transportation Plan
·Complete Streets is a good concept and very important to separate engine-powered modes from
human-powered modes, with streets categorized as 1. Pedestrian priority, 2.Auto priority, or 3.
Mixed traffic for all modes (+ 4 similar comments)
·Council should modify its 'No closed streets" decision which has impacted negatively the options
for the Bicycle and Pedestrian Plan. As a result, Transportation created a 'Bicycle Boulevard" along
Ross Road that has caused opposition to the Bicycle Plan. Instead, Bicycle Infrastructure should
have priority of creating Low Stress Bicycle Routes.
Mobility: Suggestions for New Goals
·Please add the goal of incentivizing local companies to reduce car trips per day by asking
employees to work from home several days per week.(+ 2 similar comments)
Mobility: Potential Key Actions to explore further
(These potential Key Actions do not represent all the work that the City is doing or will be doing related
to climate change and sustainability. These are the actions we will be prioritizing. They are numbered to
make it easier to refer to specific Actions. They are NOT numbered based on priority.)
# of Votes Potential Key Actions
2 1.Fund the Transportation Management Association (TMA) with the goal of reducing
Single-Occupancy Vehicle commute trips downtown by 30%
4 2.Make transit investments that significantly enhance coverage, service quality,
frequency, speed and/or access
7 3.Expand and improve bicycle and pedestrian facilities, connectivity, convenience,
and/or safety in a manner that significantly increases the percentage of trips taken by
walking or biking
1 4.Adopt Transportation Demand Ordinance per Comprehensive Plan Policy
0 5.Increase the number of City Employees utilizing commute benefits
3 6.Encourage the use of bike and/or scooter sharing, and the provision of required
infrastructure throughout Palo Alto, especially at transit stations and stops, job
centers, community centers, and other destinations
2 7.Enhance traffic signals to improve traffic flow and reduce idling and associated
greenhouse gas emissions
6 8.Increase the number of bike facilities, including bike parking and signalized
intersections with bicycle accommodations (e.g. bicycle signal heads, bicycle detection,
colored bicycle lanes)
Go Back to Contents Page Page 12 of 30
Mobility: Feedback on Potential Key Actions
·Include pricing of parking and congestion as major approaches to equitably reduce GHGs. Stop
subsidizing single-occupancy vehicles (+ 2 similar comments)
·This is a good list,but needs to be expanded and then pared down based on impact/effectiveness
(+ 1 similar comment)
·Consider lifecycle emissions of e-scooters due to manufacture, charging and daily pick-up and
delivery for charging.
·Ride hailing vehicles emit nearly 70 percent more carbon dioxide on average than the other forms
of transportation they displace and increase vehicle travel and congestion.If ride hailing vehicles
are included as part of the mobility plan, please encourage use of electric vehicles, increased
pooled trips, and focus on complementing mass transit.
1.Fund the Transportation Management Association (TMA) with the goal of reducing Single-Occupancy
Vehicle commute trips downtown by 30%
·The multiprong approach of the TMA should be a model for the city Transportation department
and should be expanded throughout the city. (+ 3 similar comments)
·Edit: Fund the Transportation Management Association (TMA) with the goal of reducing Single-
Occupancy Vehicle commute trips to downtown and Cal Ave areas by 30%
·Add: Make 25% of City Streets Pedestrian and bike friendly with maximum speed limit of 15mph.
·TMA goal of reducing single-occupancy vehicle commute trips should be for gasoline only vehicles.
EV,Hybrid, Hydrogen cars should be excluded.
·The Transportation Management Association should be funded through a business license tax.
2.Make transit investments that significantly enhance coverage, service quality, frequency, speed
and/or access
·The availability of transit is only a portion of the issue. Transit needs to go to destinations that
people actually go to, be more efficient, and coordinate better between various routes and
providers (+ 5 similar comments)
·Stay away from investing too much in transit because it won’t ever work well in our area given
peoples’ busy lifestyles. No one wants to ride on the current & planned equipment.We should
aim to get people on bikes or e-bikes or scooters, or in EVs. (+ 1 similar comment)
·Add: Have secure bike parking at train stations.
·Add: Public transit should be free. Pursue dense service walkable communities connected by
micro mobility to other walk zones.
·Need regulatory measures. Perhaps a toll on Central or Embarcadero or phasing out free parking.
3.Expand and improve bicycle and pedestrian facilities, connectivity, convenience, and/or safety in a
manner that significantly increases the percentage of trips taken by walking or biking
·Prioritize completion of the Bike and Ped Transportation Plan.We need to thoughtfully plan new
infrastructure support for bicycles including increased facilities and accommodations, including
separated bicycle lanes and bicycle parking (+ 1 similar comment)
Go Back to Contents Page Page 13 of 30
·Prioritize thoughtful integration of native plants and shade trees along pathways for both
enhanced community experience and increased carbon sequestration. (+ 1 similar comment)
·Bicycle lanes should be extended beyond school routes. (+ 1 similar comment)
·Add:Close Churchill and Alma grade crossings and have bike/ped tunnel. Install bike counters
around the city to monitor bike/ped use.
·Add measurable goals such as, "Expand and improve bicycle and pedestrian facilities, connectivity,
convenience, and safety in a manner that increases the percentage of trips taken by walking or
biking by 25% of 2019 levels by 2025 and 50% of 2019 levels by 2030.
·Include making bicycle facilities "Low Stress" Routes so that more people will be willing and able
to use bicycles.
·No more bicycle investments.
4.Adopt Transportation Demand Ordinance per Comprehensive Plan Policy
·The Transportation Demand Ordinance must be adopted and enforced.
·A Transportation Demand Ordinance should include taking an inventory of existing Transportation
Demand Management plans as part of project approvals and enforcing them, including penalties
for failure to perform.
5.Increase the number of City Employees utilizing commute benefits
·Consider making all commute benefits available to all employees, regardless of what primary site
they work at. (+ 1 similar comment)
·Provide free transit passes and/or very low rental rates, or 0% loans for the purchase of various
forms of micro-mobility. Micro-mobility should be available for rent for visitors to the City.
6.Encourage the use of bike and/or scooter sharing, and the provision of required infrastructure
throughout Palo Alto, especially at transit stations and stops, job centers, community centers, and
other destinations
·Add:Increase bike parking and estimate the GHGs from sharing solutions.(+ 1 similar comment)
·Add: Required renewal of business permits
·More bike locking around commercial areas. Bike/ped only roads.
7.Enhance traffic signals to improve traffic flow and reduce idling and associated greenhouse gas
emissions
·"Improving traffic flow" favors automobiles and should be deleted. Reducing idling is a fine goal
but increasing capacity for more cars isn't a sustainability goal. Improved traffic flow should favor
pedestrians, bicycles, and micro-mobility. (+ 2 similar comments)
·Traffic signal improvement should be aimed at minimizing acceleration as well as idling. For
minimal emissions, we want smooth flow at modest speed.If possible, traffic signals should be
fitted with reliable bicycle detectors that are well-advertised. Too many cyclists press the
pedestrian button to request a green, which gives an unnecessarily long cycle, making stops
(acceleration, idling) on the cross street more likely.(+ 2 similar comments)
·Add: Install cameras for light switching that also do bike and ped counts as well.
Go Back to Contents Page Page 14 of 30
8.Increase the number of bike facilities, including bike parking and signalized intersections with bicycle
accommodations (e.g. bicycle signal heads, bicycle detection, colored bicycle lanes)
·Top priority as it addresses 25% Active Transportation goal. Blocking off some streets to motorized
through traffic would make a huge difference.(+ 2 similar comments)
·Increase the number of low stress bicycle facilities to encourage more ridership.
·Don't do this. Enough has been done already. It serves too few people at the expense of everyone else.
Mobility: Suggestions for New Key Actions
·We have learned during this COVID-19 crisis that a lot of the work of companies can be done from
home. Encourage Expansion of Remote Work Options, such as: incentivize companies to allow
70% of their work force to work from home 2-3 days/week; when approving new office
developments, consider if the company is open to more work-from-home; make office space
smaller;and,create shared work centers for the community. (+ 9 similar comments)
·Develop incentive and disincentive programs, including congestion pricing,to accelerate the
reduction in gasoline powered vehicle use by residents and commuters. (+ 4 similar comments)
·Prioritize thoughtful integration of trees in the implementation of Complete Streets programs and
in the maintenance and retrofit of existing streets.(+ 1 similar comment)
·Measure the environmental impact of ride share vehicles on the road which contribute to more
GHG emissions.(+ 1 similar comment)
·Update Palo Alto’s street design guidelines to include shared micro mobility services and active
transportation to create protected and safe spaces for users and riders. Walkable development
should be prioritized within ¼ mile of transit with emphasis on service density. (+ 1 similar comment)
·There is a big missing key action: urban infill. Land use reform, TOD, and housing near transit are
needed actions (+ 1 similar comment)
·Recognize public street right-of-way as the largest public environmental asset and use more
effectively
·Enact a moratorium on building in the 2050 inundation zone.
Mobility: General Feedback
·Stop privileging autos over people and subsidizing single passenger vehicles at the expense of our
climate goals. Prioritize completion of the Bike and Ped Transportation Plan.Make improvements
to bike and pedestrian infrastructure, including bike parking, and consider vehicle-free streets.
Promote road changes that locally make riding/walking quicker than driving.Expand
bicycle/scooter/car-sharing. (+ 19 similar comments)
·Electrify all transportation, including shuttles, public transit,Caltrain, and sanitation vehicles (+ 8
similar comments)
·Ensure that bicycle parking is plentiful, including secure bicycle storage at workplaces, Caltrain
stations, and shopping centers. (+ 5 similar comments)
·Increase parking cost in downtown and on California Ave to encourage people to take different
modes of transportation.Embrace a variable, dynamically-priced system for motor vehicle parking
on all streets in the City (+ 5 similar comments)
·Provide and encourage the use of more and better public transit, including a connection between
SFO and SJC and expanded shuttle bus service. (+ 4 similar comments)
Go Back to Contents Page Page 15 of 30
·Add more education and oversight provisions for people who ignore traffic rules and are overly
aggressive, including cyclists and scooter-sharing participants (+ 4 similar comments)
·Make zoning easier for high density residences around public transit. (+ 3 similar comments)
·Make it easier for everyone (including seniors) to get around without getting in their cars.Bicycles
don’t work for everyone (+ 2 similar comments)
·End any future construction of parking garages as they encourage increased use of low occupancy
vehicles. (+ 1 similar comment)
·Support planning and research for travel routes, parking, and policy guidelines for new and future
mobility modes, including “Mobility as a Service”. (+ 1 similar comment)
·There should be both a methodology involving Vehicle Miles Traveled and Level of Service. Adopt
Menlo Park’s significance criteria for Level of Service.
·Require companies to have charging points for electric bicycles, offer cash credit for riding a bike
and/or buying a bicycle instead of driving, and contribute to bicycling and walking infrastructure
and public transit when building/opening an office.
·All occupants and businesses of new office buildings that are required to provide their own
parking should not be allowed to purchase RPP permits.
·Use special taxes for people who live here but work elsewhere.
·Work with PAUSD on these items to reduce car traffic and promote biking and walking to schools
·Autonomous vehicles will go a long way to these goals, without government input, if affordable.
Electric Vehicles
Potential Goals
Ü Increase the number of electric vehicles (EVs) registered in Palo Alto, as a share of total vehicles
registered, from 7% in 2018 to 50% by 2030
Ü Target to facilitate 50% of vehicles owned by low income households to be EVs by 2030
Ü Ensure there are adequate numbers and types of EV chargers in Palo Alto to support the growing
number of EVs registered in and commuting to Palo Alto
Ü Expand the number of EVs in the City’s fleet as the EV fleet market evolves
Electric Vehicles: Feedback on Potential Goals
·Prioritize charging infrastructure and the focus on lower-income households.
Ü Increase the number of electric vehicles (EVs) registered in Palo Alto, as a share of total vehicles
registered, from 7% in 2018 to 50% by 2030
·50% seems overly ambitious and difficult to achieve. Effort would be better spent electrifying
public transportation vehicles instead of a system that favors solo drivers (+ 2 similar comments)
·Is the goal 50% EV market penetration for 2030 new car sales or 50% of the entire owned
residential fleet to be EVs in 2030?
Ü Target to facilitate 50% of vehicles owned by low income households to be EVs by 2030
·Prioritize local and free infrastructure to ensure that low-income households have sufficient
resources to own and maintain an EV.
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·The City could negotiate a subsidized insurance program for qualifying low-income residents.
·Adopt San Francisco’s goal of achieving 100% emission-free transportation by 2040.
Ü Ensure there are adequate numbers and types of EV chargers in Palo Alto to support the growing
number of EVs registered in and commuting to Palo Alto
Ü Expand the number of EVs in the City’s fleet as the EV fleet market evolves
·To demonstrate its commitment to EVs, the City should lead with its fleet, at least with passenger
cars. Another possibility is garbage trucks. If the City can set specific goals (50% EV penetration)
for the public, it should do the same for itself.(+ 2 similar comments)
Electric Vehicles: Suggestions for New Goals
·All multiple use dwellings (apartment and condo buildings) must install electric vehicle chargers.
Electric Vehicles: Potential Key Actions to explore further
(These potential Key Actions do not represent all the work that the City is doing or will be doing related
to climate change and sustainability. These are the actions we will be prioritizing. They are numbered to
make it easier to refer to specific Actions. They are NOT numbered based on priority.)
# of Votes Potential Key Actions
1 1.Ensure that at least 75% of the community is aware of the environmental and
economic benefits of electric vehicles and the programs available to them
4 2.By 2022 quantify the public and private EV charger network needed within the
community to support 50% EV penetration in Palo Alto, and develop an
implementation plan to establish that charging network
3 3.Develop programs to assist and incentivize private EV charging installations in hard to
reach locations such as multifamily properties, non-profits, and small commercial sites
to ensure adequate and diverse EV charging infrastructure
0 4.By 2022, develop a strategic plan to encourage charging of inbound EVs within Palo
Alto
1 5.Continue to electrify municipal fleet as opportunities arise, and by 2021 develop a
comprehensive fleet electrification workplan and associated EV charging needs
Electric Vehicles: Feedback on Potential Key Actions
·Move each target to be one year early (+ 1 similar comment)
·Most of the community is aware of EV and its benefits. You need to make sure the chargers are
there. Is there any way to situate charging spots near existing gas stations? (+ 1 similar comment)
·Incentivize e-bikes instead of or in addition to electric cars.
·Share your EV leadership experience with other cities to magnify your savings
·These are all too vague and unmeasurable. The City needs to do something here, not just plan.
1.Ensure that at least 75% of the community is aware of the environmental and economic benefits of
electric vehicles and the programs available to them
Go Back to Contents Page Page 17 of 30
·We need a ‘total cost of ownership’ approach for EVs –the upfront cost is or could be higher, but
the cost to operate is much lower.
·Make the target closer to 90%
2.By 2022 quantify the public and private EV charger network needed within the community to support
50% EV penetration in Palo Alto, and develop an implementation plan to establish that charging network
·Prioritize daytime charging at workplaces, when electricity is generally cheaper and cleaner.
·We should already know this. We need to start putting in more charging stations, especially at
multifamily residences and low-income residences.
·Change to Goal Date from 2022 to 2020
3.Develop programs to assist and incentivize private EV charging installations in hard to reach locations
such as multifamily properties, non-profits, and small commercial sites to ensure adequate and
diverse EV charging infrastructure
·I like the focus on multi-family chargers.
·I would very much like to see support for chargers at low income residential facilities.
·How will this be addressed for tenants? They make up about 40% of the city, so it depends on
their landlord to go along with it.
4.By 2022, develop a strategic plan to encourage charging of inbound EVs within Palo Alto
·Change to Goal Date 2022 to 2021 (+ 1 similar comment)
5.Continue to electrify municipal fleet as opportunities arise, and by 2021 develop a comprehensive
fleet electrification workplan and associated EV charging needs
·We are past discussion and should be more action focused. Add: “Palo Alto shall convert 50% of
their fleet to EVs by 2025”. (+ 3 similar comments)
Electric Vehicles: Suggestions for New Key Actions
·Shift 80% of car charging within the City to daytime hours: 8am-3pm, in order to take advantage
of cheap, abundant solar energy.
·Require electric construction equipment on municipal projects and large commercial projects.
·Require commercial fleet operators to convert 50% of their fleet to EVs by 2025.
·Educate and encourage CARB to set a ZEV mandate that supports Palo Alto's EV goals.
Electric Vehicles: General Feedback
·Adopt policies to increase EV accessibility for all residents, include electric vehicle infrastructure in
all buildings (multi-family, non-profits, small commercial sites, rentals), EV charger networks, and
a comprehensive electrification plan (+ 4 similar comments)
·The EV goals and key actions are a good starting point but don’t go far enough. (+ 1 similar comment)
Go Back to Contents Page Page 18 of 30
·The City should subsidize installation costs, through a discount for a "group buy" of EV chargers,
paying for trenching or other electrical work, or a reduced permit price (+ 1 similar comment)
·Numbers of EVs instead of EV-miles-traveled is a questionable metric. EVs don’t solve parking and
congestion problems. We need to focus on reducing VMT and SOV as well.(+ 1 similar comment)
·We are going to need stronger incentives for moving to EVs; perhaps an added gas tax, cheaper
rates for utilities for supporting them, or a “climate tax” on fossil fuel powered cars, depending on
their carbon emissions/mile if they are driven within city limits.(+ 1 similar comment)
·The City should encourage EV charging during the day when solar energy is most available. And
incentivize EV chargers at workplaces (+ 1 similar comment)
·Incentivize the use of electric bicycles and electric buses.
·Consider electric motorcycles for the Police Departments.
·Expand to include Hydrogen vehicles.
·In coordination with other cities with similar climate goals, encourage the California Air Resources
Board to adopt a more stringent Zero Emission Vehicle regulation in both increasing the EV
numbers and types
·Require that all parking spaces have the requisite conduit for EV charging for new construction in
addition to the rules enacted by Palo Alto in 2014.
·Reconvene the Electric Vehicle Task Force to develop a proposal for remodels of existing buildings.
·This topic should also take autonomy into account. Low income households and older residents,
with the right incentives, might prefer to use shared vehicles.
·The issue of the impact on the electrical grid needs to be front and center.
Water
Potential Goals
Ü Reduce per capita water use compared to 2019
Ü Increase the percentage of recycled water used (volume of recycled water/recycled water filter
capacity) by 10% in 2022 compared to 2019
Ü Reduce the total dissolved solids by 50% compared to 2019 base year
Ü Manage stormwater to slow the flow to receiving waters and improve water quality to protect
the SF Bay, while also treating it as a beneficial resource for alternative uses
Water: Feedback on Potential Goals
Ü Reduce per capita water use compared to 2019
·Add a measurable target such as “Reduce per capita water use by x% (or to xx gal/day) by 202x
compared to 2019”(+ 3 similar comments)
·Conservation is always a good thing.
Ü Increase the percentage of recycled water used (volume of recycled water/recycled water filter
capacity) by 10% in 2022 compared to 2019
·Increase recycled water used by more than 10% in 2022.(+ 3 similar comments)
Ü Reduce the total dissolved solids by 50% compared to 2019 base year
Go Back to Contents Page Page 19 of 30
·What is the water that you are addressing? Incoming water, wastewater, recycled water? What
are dissolved solids and what are the consequences of this? (+ 2 similar comments)
·Add a date for the phase out of ground water pumping for home building.
·Remove Potential Goal #3. Does this goal affect greenhouse gas emissions? While worthy of work
in improving sustainable water infrastructure, perhaps it is lower priority than the climate goals.
Ü Manage stormwater to slow the flow to receiving waters and improve water quality to protect the SF
Bay, while also treating it as a beneficial resource for alternative uses
Water: Suggestions for New Goals
·Add water reuse capability as a long-term goal (gray and blackwater for example)and incentivize
graywater to landscaping for fruit trees and native plants. (+ 2 similar comments)
·Use the concept of bioswales for storm water and measure this metric to see how much water can
be reduced in storm water drains and go instead to landscape and ground water storage.
·Goals related to groundwater (continue ensuring emergency supply).
·Purple pipes installed whenever possible when a utilities project requires digging.
·Complete ban on basement construction and ground water waste.
Water: Potential Key Actions to explore further
(These potential Key Actions do not represent all the work that the City is doing or will be doing related
to climate change and sustainability. These are the actions we will be prioritizing. They are numbered to
make it easier to refer to specific Actions. They are NOT numbered based on priority.)
# of Votes Potential Key Actions
3 1.Maximize cost-effective water conservation & efficiency
4 2.Expand the use of effluent from the Regional Water Quality Control Plant through
Non-Potable Reuse, Indirect Potable Reuse, or Direct Potable Reuse
5 3.Establish quantifiable baseline and targets for implementation of green stormwater
infrastructure on private property, municipal facilities and public rights-of-way by 2024
1 4.Design and build a salt removal facility for the Palo Alto Wastewater Treatment Plant
6 5.Develop a "One Water" Portfolio for Palo Alto
Water: Feedback on Potential Key Actions
·We applaud the clear delineation of the water-related goals and key actions (+ 1 similar comment).
·If no water is allocated to backyard habitat and fruit trees, these Key Actions can lead to
desertification of our beautiful city.
1.Maximize cost-effective water conservation & efficiency
·Too general. Metrics? Who is going to do this, how will they do it and when will we know it’s been
achieved?(+ 1 similar comment)
·Please include a basic educational component on water conservation for Palo Alto residents
Go Back to Contents Page Page 20 of 30
2.Expand the use of effluent from the Regional Water Quality Control Plant through Non-Potable
Reuse, Indirect Potable Reuse, or Direct Potable Reuse
·I am most excited by #2. Recycled water in toilets is such a great idea.
3.Establish quantifiable baseline and targets for implementation of green stormwater infrastructure on
private property, municipal facilities and public rights-of-way by 2024
·It is always helpful to have a quantifiable baseline in order to manage goals, but not sure what this
means in this context. (+ 2 similar comments)
·This is very important (+ 1 similar comment)
·Expand stormwater and wastewater outreach and education efforts, including on social and
earned media.(+ 1 similar comment)
·Add: “By including incentives, it is more likely that private property owners will implement green
stormwater infrastructure such as rainwater catchment, permeable hardscape, and bioswales.”
·Encourage creation of "rain garden" type runoff catchments
·Needs to be done quicker. Atherton has had a plan since 2013.
4.Design and build a salt removal facility for the Palo Alto Wastewater Treatment Plant
·What is this addressing -recycled water, wastewater, incoming water to the plant? Is this to be a
desal plant? How much energy will this take? Where does the salt go? How much will this cost?
More explanation is needed.(+ 2 similar comments)
·Remove Potential Key Action #4: This action appears to support Goal #3.(+ 1 similar comment)
5.Develop a "One Water" Portfolio for Palo Alto
·This is very important because its focus is systemic. It should drive all the other key actions. When
we embrace the belief that water in all its forms has value, the full water life cycle can be
optimized to build strong economies, vibrant communities, and healthy ecosystems. All other
aspects of water planning fall under the “One Water Portfolio”.(+ 2 similar comments)
·What is a "One Water" Portfolio? How it is helpful? (+ 1 similar comment)
·Value shallow groundwater as an important part of our water portfolio.
Water: Suggestions for New Key Actions
·Allow for the wide-scale use of gray water on private property. All new homes should have two
pipes 1) for grey water and 2) for sewer water.(+ 2 similar comments)
·Require climate-appropriate, drought-tolerant native species in public and private plantings.
Expand the requirements of the Water Efficient Landscape Ordinance (WELO) to further the S/CAP
goals.(+ 2 similar comments)
·Develop a model to distinguish home water use vs. irrigation vs. water to grow edibles. Develop a
program for properties to support backyard habitat and vegetable/fruit gardens (and reduce
transportation miles associated with the food we eat).(+ 1 similar comment)
·Ensure that water conservation measures in the landscape during drought and at all times adhere
to California State “Save our Water and our Trees” principles to ensure existing trees are not lost.
Go Back to Contents Page Page 21 of 30
·Create streamlined design guidelines and permitting process with minimal fees for onsite potable
and non-potable water reuse on private (residential and commercial) property.
·Include actions related to groundwater, particularly resilient emergency supply.
·Add rainwater collection as a key action for both residential and commercial.
·Pair GSI projects with road diets and more protected (class IV) bike lanes.
Water: General Feedback
·Focus efforts on educational programs on climate change and water-waste, water conservation,
and the safety of our tap water. (+ 2 similar comments)
·Palo Alto has been doing a good job on water conservation and management, and the goals and
actions outlined are good ones. (+ 1 similar comment)
·Prioritize and start development of green stormwater infrastructure (+ 1 similar comment).
·Accelerate Direct Potable Reuse so it is available when it becomes absolutely needed. Cooperate
with San Jose and others in this effort.
·Incentivize recycled water use, low-volume flush toilets, and greywater for outside watering.
·Encourage the use of drought-resistant and native California plants in commercial and residential
plots to restore and improve the environment and reduce outdoor water usage.
·The City should outlaw the pumping of groundwater for residential basement construction.
·Use less water sprinkling in city parks. Many parks over watered.
·Since there are no direct GHG reductions that will result from these goals and actions, I would put
other parts of the S/CAP at a greater priority.
Climate Adaptation and Sea Level Rise
Potential Goals
Ü Develop a multi-year Sea Level Rise Adaptation Plan for Council Review by April 2021 to include a
sea level rise vulnerability assessment and a community engagement strategy for plan
development and implementation
Climate Adaptation and Sea Level Rise: Feedback on Potential Goals
·It would be good to see more specific goals.
Ü Develop a multi-year Sea Level Rise Adaptation Plan for Council Review by April 2021 to include a sea
level rise vulnerability assessment and a community engagement strategy for plan development and
implementation
·Expedite this goal -sooner than April 2021.
·Groundwater levels rise with sea level rise and may double the extent of impact.
Climate Adaptation and Sea Level Rise: Suggestions for New Goals
·Preserve the wetlands.No more residential or commercial development in FEMA flood-prone
areas.
Go Back to Contents Page Page 22 of 30
Climate Adaptation and Sea Level Rise: Potential Key Actions to explore further
(These potential Key Actions do not represent all the work that the City is doing or will be doing related
to climate change and sustainability. These are the actions we will be prioritizing. They are numbered to
make it easier to refer to specific Actions. They are NOT numbered based on priority.)
# of Votes Potential Key Actions
2 1.Begin Sea Level Rise Vulnerability and Risk Assessment in Spring 2020 (includes related
groundwater impacts)
1 2.Develop a multi-year Sea Level Rise Adaptation Plan and community engagement
strategy.
2 3.Council consideration of regional levee alignment projects
2 4.Alignment with existing local and regional efforts that address sea level rise
Climate Adaptation and Sea Level Rise: Feedback on Potential Key Actions
·There may be other climate adaptation actions beyond sea level rise that should be considered:
wildfire, risks to the urban forest, extreme heat, etc. (+ 2 similar comments)
·Zero content in these actions. Sounds expensive with nothing really to do. (+ 1 similar comment)
·Include flooding of homes from creeks as a climate risk caused by more intense rains
·Our biggest risk as a City with sea level rise is that our only substation that handles all electricity
coming into the city is at a site next to the bay and below grade.
·All are important and I would keep them in that order of importance.
1.Begin Sea Level Rise Vulnerability and Risk Assessment in Spring 2020 (includes related groundwater
impacts)
·The vulnerability assessment should already be completed.
2.Develop a multi-year Sea Level Rise Adaptation Plan and community engagement strategy.
·Needs a date associated with this action, ideally in the next 3 -6 months
·Have a competition with the goal of participants providing ideas for what/how Palo Alto should
address sea level rise risks. Something like what was done for electricity.
3.Council consideration of regional levee alignment projects
4.Alignment with existing local and regional efforts that address sea level rise
Climate Adaptation and Sea Level Rise: Suggestions for New Key Actions
·Notify property owners, both existing and prospective, that their property is located in an
inundation zone and is expected to flood by years 20xx per data available.
·Include specific vision language calling for the protection of wetlands from development, as they
are both a source of carbon sequestration and sea level rise protection.
·Create a Managed Retreat plan using Transfer of Development Rights.
·Build a second transmission connection and substation on the other side of town
Go Back to Contents Page Page 23 of 30
Climate Adaptation and Sea Level Rise: General Feedback
·Maintain high priority for the SLR project and all aspects of developing the SLR Adaptation
Plan.This is a long-term effort and any delays will likely be very costly in the long run.Protecting
ecosystems is critically important. We should not be spending millions on undergrounding utilities,
rebuilding Cubberley, roads, other structures and infrastructure, etc. unless we know that money
won’t literally be money down the drain. We need a Plan with data and modeling studies to guide
building decisions and to protect life and property.(+ 7 similar comments)
·Work with adjacent cities and counties to develop a comprehensive regional plan and make sure
all sea level rise efforts do not privilege one area over another. (+ 2 similar comments)
·Conduct targeted awareness campaigns that include what is projected to happen to any particular
property/parcel in Palo Alto from the different sea level rise projections. (+ 1 similar comment)
·Collaborate with the San Francisquito Creek Joint Powers Authority and Valley Water in their work
with the Army Corps of Engineers and California State agencies in studying Sea Level Rise
adoptions for Palo Alto.
·Engage the real estate businesses. It is in their financial interest to act on sea level rise resilience.
·Enact a nature preservation plan (targeting areas such as sand dunes and wetlands) in preparation
for major action by 2040-2050.
·Groundwater level rises as the sea level rises. Buildings and infrastructure are usually designed to
last decades but will have a much shorter lifespan than expected when infiltrated by water.
·Palo Alto is a sea-level community that acts like it's on a mountain. Rising sea levels threaten our
golf course and airport.
·Consider supporting a Golden Gate Dam to protect the entire bay and delta.
·Develop a “3•/4•Risk Assessment, Management, and Mitigation Plan.” These plans may be self-
standing or could be incorporated into ongoing climate/sustainability planning.
Natural Environment
Potential Goals
Ü Renew, restore, and enhance resilience of our natural environment
Ü Maximize biodiversity and stewardship of flora, fauna, and air, soil, and water resources
Ü Reduce environmental impacts of our actions
Ü Increase tree canopy to 40% city-wide coverage by 2030
Ü Expand the designation of pesticide-free parks and city facilities
Natural Environment: Feedback on Potential Goals
·While all of the goals in this section are laudable, no specific objectives are outlined, except in
regard to increasing city-wide tree canopy 40% by 2030. (+ 1 similar comment)
·Prioritize ensuring that we have the right trees and other flora in the right places to (a) last 50-100
years; (b) absorb carbon; and (c) support wildlife. (+ 1 similar comment)
·Make sure residents and/or their landscapers don't use pesticides and herbicides
·For trees, suggest including native and/or drought tolerant trees.
·Something must be done about the “standard” Mow blow and go “gardening” for homes in Palo
Alto. The leaf blower ban has done almost nothing.
Go Back to Contents Page Page 24 of 30
Ü Renew, restore, and enhance resilience of our natural environment
·We can continue to preserve existing undeveloped land by exercising infill, mixed-use
development to help abate the housing crisis and transportation emissions.
Ü Maximize biodiversity and stewardship of flora, fauna, and air, soil, and water resources
Ü Reduce environmental impacts of our actions
·Increase beneficial environmental impact of our actions. (+ 1 similar comment)
·This is not a S.M.A.R.T. goal --what impact are you looking at for reducing environmental impact of
our actions?
Ü Increase tree canopy to 40% city-wide coverage by 2030
·Prioritize native species for tree canopy, incentivize removal of invasive species, and increase
pollinator-friendly plants.(+ 8 similar comments)
·This is an excellent goal that should be prioritized because of the multiple benefits that trees
provide: shade, carbon sequestration, habitat for birds and invertebrates, beauty, and higher
property values. (+ 3 similar comments)
·The tree canopy could include fruit trees to add resiliency to the foodshed and can be harvested
for food banks, food insecure residents or neighbors, and schools for cooking and environmental
courses. (+ 1 similar comment)
·If funding needs to be prioritized, increasing tree canopy should be the highest priority of
proposed actions within this area because trees have such a beneficial impact on GHG reduction.
·This goal conflicts with Key Action #6 of ensuring no net tree canopy loss. It has to be clear that
tree canopy equity shall be achieved by increasing canopy cover in lesser canopied neighborhoods.
·Consider a public/private/non-profit incentive for native plant and food growing gardens.
·Make sure that tree planting and maintenance is part of the design for all new developments.
·Focus on tree canopies that minimize damage to objects (e.g. vehicles) below them. And bear in
mind the impact on photovoltaic generation equipment.
Ü Expand the designation of pesticide-free parks and city facilities
·Move towards 100% pesticide-free Palo Alto.
Natural Environment: Suggestions for New Goals
·Help support a market for sustainable wood (FSC certified) and thereby protect forests and reduce
reliance on concrete and steel.
·Switch away from all fossil fuel-based gardening equipment by 2030.
·Maintain and protect the health of existing trees in addition to increasing the number of trees.
·Increase education programs for adults and children to teach the roles trees and other parts of the
natural environment play in climate-change mitigation and human health and how individual
decisions in plant selection and care, and water and chemical use, affect our natural environment.
Go Back to Contents Page Page 25 of 30
Natural Environment: Potential Key Actions to explore further
(These potential Key Actions do not represent all the work that the City is doing or will be doing related
to climate change and sustainability. These are the actions we will be prioritizing. They are numbered to
make it easier to refer to specific Actions. They are NOT numbered based on priority.)
# of Votes Potential Key Action
4 1.Explore programs and policies that use Palo Alto’s public and private natural capital
(e.g., canopy, soils, watersheds) to provide local carbon offsets and other
environmental benefits
8 2.Evaluate and modify plant palette selection to maximize biodiversity and soil health to
adapt to the changing climate, and incorporate buffers for existing natural ecosystems
4 3.Coordinate implementation of the Urban Forest Master Plan and Parks Master Plan to
create pathways to parks and encourage appreciation of natural ecosystems
3 4.Explore expanding the requirements of the Water Efficient Landscape Ordinance
(WELO) to further the S/CAP Goals
3 5.Implement the Green Stormwater Infrastructure plan
4 6.Ensure No Net Tree Canopy Loss
3 7.Develop methods to allow for both solar panels and trees
2 8.Reduce the toxicity and the total amount of pesticides used in the city
6 9.Ensure the protection of our ecosystem through the plan review and permitting
process
8 10.Restore degraded areas and channelized creeks and create wildlife corridors
Natural Environment: Feedback on Potential Key Actions
·Need more specifics on canopy, which we want to maximize to increase CO2 absorption and
provide heat protection for people and habitat for animals. Simple things might include sizable
trees in all dog parks and school yards. Do away with “shade structures” and use trees instead.
·Consider more trees in the Baylands and some of the meadow-like areas in Foothills Park,
consistent with those ecosystems.
·Encourage development with FSC wood and without concrete/steel.
·Is Palo Alto’s golf course consistent with the city’s sustainability goals? Can we turn it into a much
more usable, sustainable ecosystem that will also support wildlife?
·Is a city airport consistent with our goals?
·Add Key Performance Indicators: 1) Tree canopy cover should be assessed locally rather than city-
wide. The S/CAP should explain how canopy coverage will be assessed and how often; 2) Inclusion
of tree protection, planting, and maintenance plans in all property development plans approved
by the city; 3) Dedication of sufficient resources to ensure an effective Urban Forestry program
and developer compliance with tree protection, planting, and maintenance plans.
1.Explore programs and policies that use Palo Alto’s public and private natural capital (e.g., canopy,
soils, watersheds) to provide local carbon offsets and other environmental benefits
·Focusing on tree canopy for health and environmental benefits is more important than carbon
offsets.(+ 1 similar comment)
Go Back to Contents Page Page 26 of 30
·Do not specify local carbon offsets.The end goal is net gains in permanent carbon sequestration
and environmental benefits. In GHG trading markets, carbon sequestration policies need to ensure
that sequestration is additional to what would have occurred in the normal course of business.
·Explain to the public what you mean by carbon offsets. That practice needs to be explained and
examples provided of how this is occurring already in practice.
2.Evaluate and modify plant palette selection to maximize biodiversity and soil health to adapt to the
changing climate, and incorporate buffers for existing natural ecosystems
·Maximizing biodiversity is not clear, should focus on native plants, and eradication of invasive,
non-native species (+ 1 similar comment)
3.Coordinate implementation of the Urban Forest Master Plan and Parks Master Plan to create
pathways to parks and encourage appreciation of natural ecosystems
·Reword as “Ensure that all city-sponsored sustainability-related committees, guide documents,
and departments are synchronized. Coordinate boards, commissions, and subcommittees and
their functional review; the Comprehensive Plan, S/CAP, Urban Forest Master Plan, city tree
ordinances, zoning ordinances, municipal code, parks master plan, and fire management plan; and
all department projects and functions to increase synergies and decrease inconsistencies.”
·Edit: Coordinate implementation of the Urban Forest Master Plan, Parks Master Plan, and
Sustainable Green Streets Network to create pathways to parks, safe active transportation
connected network, Safe Routes to School, and to encourage appreciation of natural ecosystems.
4.Explore expanding the requirements of the Water Efficient Landscape Ordinance (WELO) to further
the S/CAP Goals
·Reword as “Require climate-appropriate, drought-tolerant species in public and private plantings.
Expand the requirements of the Water Efficient Landscape Ordinance (WELO)to further the S/CAP
goals.” Add to the Water area as well,thereby linking the Water and Natural Environment areas.
·Add: Explore expanding the requirements of the Water Efficient Landscape Ordinance (WELO) to
further the S/CAP goals and to reduce wastewater going to sewage treatment by 30% (using
diversion of washing machine water and tub/shower water)
·No -this is too much paperwork. You should simplify this approach and have examples in the City
of low water gardens. A low water garden should be a requirement for each new home build.
5.Implement the Green Stormwater Infrastructure plan
6.Ensure No Net Tree Canopy Loss
·See Goal #4 above. Specific actions for each neighborhood should be developed such that no
neighborhoods lose tree canopy cover. Neighborhoods that have less than 40% canopy cover
should have annual tree-planting plans, with progress reported annually.
·Ensuring no net tree canopy loss seems inconsistent with the previous goal of increasing canopy
by 40%. Also, how is canopy loss defined?"
7.Develop methods to allow for both solar panels and trees
Go Back to Contents Page Page 27 of 30
·Develop smart policy for the placement of solar panels.Batch solar panels in local solar farms.
Don’t allow the needless loss of natural environment for solar panels.(+ 1 similar comment)
8.Reduce the toxicity and the total amount of pesticides used in the city
·Add: “including by planting species that are well-suited for the local environment.”
·All parks should be pesticide free. Pesticides damage our groundwater and other environments.
·Should also be concerned with eliminating herbicides as well as pesticides
9.Ensure the protection of our ecosystem through the plan review and permitting process
·Reword as “Ensure the comprehensive protection of our ecosystems through improved and clear
development review criteria, consistent with the Landscape and Tree Technical Manual. Ensure
tree planting and maintenance are an integral part of the approval process for all new residential
and business developments in the city. Monitor and enforce compliance with approved plans.”
10.Restore degraded areas and channelized creeks and create wildlife corridors
·Reword as “Incentivize public and private landowners to restore degraded areas of land and
channelized creeks, and to create wildlife corridors.”
·This is very important. Lose the concrete in channelized creeks. Restore natural environment. Add
many treelined, natural environment walk/bikeways in Palo Alto.
Natural Environment Suggestions for New Key Actions
·Ensure access to open space or a park within a 10-minute walk for every resident.
·Implement a Sustainable Green Streets network throughout the City that prioritizes implementing
green stormwater infrastructure as the backbone of an integrated network for a connected active
transportation master plan and green ecology network.
·Protect the natural environment outside Palo Alto. When we fail to provide housing for the people
who work in our community, we promote sprawl and the destruction of natural resources
elsewhere. Urban infill needs to be part of Palo Alto's plan.
·Expand urban gardening amenities and incentivize commercial/industrial clients (e.g, companies
big enough for cafeterias) to grow some of their food on site.
·Create programs to incentivize eating lower on the food chain (less meat and dairy, emphasis on
local/organic produce).
·Maintain buffer areas along creeks and restore natural floodplain where possible
Natural Environment: General Feedback
·Properly protecting, managing, and increasing our urban tree canopy, as outlined in the Urban
Forestry Master Plan, offers very high bang-for-the-buck value in reducing our overall GHG
emissions.Ensure that the Urban Forestry Master Plan is properly evaluated and considered a
critical component of the S/CAP, rather than as a separate plan.(+2 similar comments)
·Partner with leading organizations in conservation.(+ 1 similar comment)
Go Back to Contents Page Page 28 of 30
·Increase the responsibility and visibility of the Palo Alto Youth Council, empowering youth to
contribute to the planning process and raising awareness for the teen community.
·Support school and other public garden spaces.
·Increase the usage of programs and policies that utilize public and private natural capital, offering
a sustainable alternative to the purchase of natural gas carbon offsets.
·Ensure that our urban forest stays protected by strengthening protections for trees and expanding
the list of protected trees and tree sizes. Trees are often overlooked as a sustainability asset.
·Educate about and incentivize a Homegrown National Park.
·Expand designation of parks to make them ecology "patches" by introducing rich native high-value
habitat that supports multiple species. Include retaining leaf litter to improve soils.
·Designate Zero Waste Parks
·Create a full-time staff position dedicated to researching and writing grants for sustainability
projects.The Urban Forest and Parks Master Plans include a range of unfunded projects which will
significantly benefit sustainability goals if implemented.
·Create a resource list for Integrated Pest Management in contrast to pesticides and proactively
market that material through CPAU bill inserts and by contacting condominium associations.
Include information on proper disposal of hazardous materials, including pesticides.
·Increase the speed of under-grounding electric and communication lines. This is important such
that trees are not butchered to clear lines.
·Soil provides many benefits including retaining and storing stormwater,yet we discard it when
building underground or cover it with pavement. No Net Soil Loss.
Zero Waste
Goals
Ü Divert 95% of waste from landfills by 2030, and ultimately achieve zero waste
Ü Implement short-and medium-term initiatives identified in the 2018 Zero Waste Plan
Zero Waste: Feedback on Goals
·Palo Alto is on the cutting edge of Zero Waste goals. Great job!(+ 3 similar comments)
·The City needs to education residents about the lifecycle of ALL goods that are consumed. Many
residents are happy because their recycling bins are full --that's not success!
Ü Divert 95% of waste from landfills by 2030, and ultimately achieve zero waste
·Supporting waste-to-energy deployment locally would not only help with this goal, it would help
with energy reliability. (+ 1 similar comment)
·We need city laws that require all packaging to come in either recyclable or compostable
packages. And the containers should be much easier to read. (+ 1 similar comment)
·Since both food and material waste contributes significantly to the climate crisis, Council should
prioritize the 95% waste diversion goal for 2030.
·In learning from the State's mistakes in passing and implementing SB 1383 (2016), we need to give
thought to 1) where organic waste is diverted to; 2) who is responsible for collection and
Go Back to Contents Page Page 29 of 30
management of diverted organics; and 3) what is ultimately done with diverted organic wastes
which will naturally produce methane.
·Educate residents about the benefits of composting.
·Zero is a low number. This feels like something that must be undertaken at the federal level, at the
least, in order to make much progress.
Ü Implement short-and medium-term initiatives identified in the 2018 Zero Waste Plan
Zero Waste: Key Actions to explore further
(These Key Actions do not represent all the work that the City is doing or will be doing related to climate
change and sustainability. These are the actions we will be prioritizing. They are numbered to make it
easier to refer to specific Actions. They are NOT numbered based on priority.)
# of Votes Key Actions
7 1.Expand the Deconstruction and Construction Materials Management Ordinance
5 2.Eliminate single-use disposable cups and containers by expanding the Disposable
Foodware Ordinance
9 3.Require food waste prevention and edible food recovery measures for commercial
food generators
4 4.Promote residential food waste reduction
4 5.Incentivize the use of reusable diapers
5 6.Champion waste prevention, reduction, reusables, and the sharing economy
Zero Waste: Feedback on Key Actions
·Coordination with nearby cities will help prevent leakage.
1.Expand the Deconstruction and Construction Materials Management Ordinance
·Great Key Action that should be expanded as much as possible. It makes a huge difference in the
waste stream.(+ 1 similar comment)
·Discourage demolition of beautiful old architecture to build monstrosities.
·This Key Action should be taken after full consultation with construction professionals.
2.Eliminate single-use disposable cups and containers by expanding the Disposable Foodware Ordinance
·Eliminate plastic as much as possible,starting with awareness about how much plastic each
household uses and tosses into the recycling bin.
·Eliminate single-use water bottles. Implement San Francisco’s policy -No sports teams and
construction crews can bring non-reusable water bottles to parks or construction sites.
·A lot of companies bring food from other cities that might not have such ZW goals. How should
the city provide incentives/punishments to guide these businesses?
3.Require food waste prevention and edible food recovery measures for commercial food generators
·This has large GHG reductions, with many co-benefits for participants. (+ 1 similar comment)
Go Back to Contents Page Page 30 of 30
·On food waste, it would be great to get as much as possible of the edible food to food banks or
other places where it can be used directly instead of composting.(+ 1 similar comment)
4.Promote residential food waste reduction
·This has large GHG reduction potential.
·Teach this at school so kids and then their families understand how much waste occurs in the city.
5.Incentivize the use of reusable diapers
·This Key Action is really important. Publicize diaper services.
·How much better are diapers that are washed with bleach over non-reusable diapers?
·Will this Key Action include adult diapers? We may have more adults in diapers than babies.
·This feels a bit big-brother-y. This can be done, but be careful to not force people to do this.
6.Champion waste prevention, reduction, reusables, and the sharing economy
·Need to educate the public, including students, better about how much waste is produced and
how it should be properly sorted. (+ 1 similar comment)
·Promote Sustainable supply chain management at city and businesses with examples and
educational support.(+ 1 similar comment)
·Encourage keeping clothing for a long time, not so many fashion changes.
Zero Waste: Suggestions for New Key Actions
·Manage street and other public trees throughout their entire lifecycle by creating or partnering
with an urban wood reuse program.
Zero Waste: General Feedback
·Include educational initiatives in short-term plans, and broaden goals to reach businesses and
schools, including partnering with local non-profits and PAUSD, and integrating appropriate
messaging into City summer camp programming (+ 3 similar comments).
·Influence packaging and work with nearby cities. (+ 2 similar comments)
·Work on local food.Incentivize commercial clients to start food gardens on site. Expand urban
gardening amenities. Increase victory gardens and fruit trees.(+ 2 similar comments)
·Work with restaurants, stores, and residents to minimize food waste. (+ 1 similar comment)
·Promote composting by businesses and multifamily housing dwellers within Palo Alto.
·Require all City catering to be vegetarian or vegan.
·Measurable objectives need to be designed for the goals and proposed actions in this section.
·There’s really good technology for anaerobic digestion of solid waste and it’s conversion to fuel.
·Consider billing of residential waste pickup by actual pickups. This would be an incentive to reduce
waste.
·Try a good neighbor policy where you put your containers next to your neighbors. This makes for
fewer stops and faster pickups for all.
·Identify and publicize "cradle to grave" products and encourage citizens to buy these.
City of Palo Alto (ID # 11281)
Utilities Advisory Commission Staff Report
Report Type: Meeting Date: 6/17/2020
City of Palo Alto Page 1
Summary Title: Water System Operations
Title: Discussion of City Water System Operations
From: City Manager
Lead Department: Utilities
Executive Summary
This presentation is a brief overview of the configuration of the City’s water system, capacities,
demands, emergency preparedness, and the decision making process during emergencies. The
presentation was generated in response to the March 5 th UAC Meeting where questions were
raised about how an emergency would be declared and who was responsible for makin g this
decision.
Attachments:
•Attachment A: PowerPoint
Staff: Tomm Marshall
www.cityofpaloalto.org
Attachment A
Staff: Tomm Marshall
2
Basic Water System Requirements
•Meet Maximum Day Demand.
•Maintain a minimum pressure of 20psi.
•Supply 4 hours of Peak Hourly Demand.
•Recommended to have 33% of Maximum Daily Demand
available during an emergency.
3
System Demands
•Maximum Daily Demand –14.2 MGD
•Average Daily Demand Summer –13.5 MGD
•Minimum Daily Demand –4 MGD
•Maximum Hourly Demand –1 MG
4
Water System Supply
•5 Receiving Stations connected to SFPUC Water System
(Capacity of 58 Million Gallons per Day MGD)
•8 well sites within the city (Delivery Capacity of 19 MGD)
•7 reservoirs in the city (Storage of 12.5 Million Gallons)
•6 interties to adjacent water agencies ( Mountain View,
Stanford, and Purissima Hills.)
5
6
Water Receiving Stations (Turnouts)
5 Receiving Stations:
•3 Receiving Stations are on the Palo Alto Pipeline. (21
MGD)
•2 Receiving Stations are off the pipelines that cross in
North San Jose and extend up the peninsula. (37 MGD)
•Total Capacity of all the Receiving Stations is 58 MGD.
7
Wells
•8 Wells on the System.
•Capacity of wells is 19 MGD.
•Wells are for emergency response.
•Well water treatment must be activated to use the wells.
•Personnel must go to each well site to activate.
•Wells can deliver minimum daily demand.
•Extraction volumes must be monitored.
•Constant pumping can reduce well production.
•City was served by the wells until the mid 1960s.
8
Reservoir
•7 Reservoirs on the system.
•Reservoir capacity is 12.5 Million Gallons (MG).
•6.5 MG east of Interstate 280.
•6 MG West of Interstate 280.
9
Interties
6 Interties:
•Mountain View, Purissima Hills, Stanford
•Interties are used for short-term water supply for
operations and maintenance.
•Not considered as an emergency supply.
•Stanford provides emergency backup to Stanford Hospital.
10
Daily Demand vs. Supply Capacity
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Turnout, Wells, and Reservoirs are maximum daily capacity (MGD). Reservoir data is maximum storage capacity (MG).
11
Emergency Planning
Continuity of Operations Plan (COOP)
Utilities Emergency Operations Plan (EOP)
Water Emergency Response and Recovery Plan
Water Transmission Procedure Manual
12
Emergency Operations
•Chief Water System Operator is the decision maker.
•Notification and approval of the State Water Resources
Control Board. (Boil Water Notice, Unsafe Water Notice,
Emergency Wells)
•City Manager and Utility Director would be involved in
any emergency actions.
•Priorities have been established for Load Reductions.
13
Emergency Operations -Contingencies
Single Contingency Events
•Sufficient redundancy to mitigate long-term single contingency events.
•Water system does not require electricity to deliver water from SFPUC.
•Adequate local storage and well capacity to meet average daily demands.
Multiple Contingency Events (Earthquake)
•Circumstances will determine response.
•Extensive damage may require water use restrictions.
14
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Turnout, Wells, and Reservoirs are maximum daily capacity (MGD). Reservoir data is maximum storage capacity (MG).
TOMM MARSHALL
Assistant Director Operations
City of Palo Alto
(ID # 11067)Utilities Advisory Commission Staff Report
Report Type: Agenda Items Meeting Date: 6/17/2020
City of Palo Alto Page 1
Summary Title: Demand Side Management Report
Title: Discussion of the Demand Side Management Report for Fiscal Year
2019
From: City Manager
Lead Department: Utilities
Recommendation
This memo and the attached report present the achievements of Demand Side Management
(DSM) programs implemented by the City of Palo Alto Utilities (CPAU) during Fiscal Year (FY)
2019. This is for the Commission’s information and no action is required.
Executive Summary
The FY 2019 DSM Annual Report provides updates on the ac hievements of CPAU’s electric,
natural gas, and water efficiency programs, as well as locally-sited solar photovoltaic (PV), solar
water heating program and sustainability-related programs. The DSM Report also provides
updates on various customer outreach and research and development initiatives that are
related to achieving savings in electric, gas and water.
CPAU exceeded its electric and water efficiency goals for FY 2019 but fell short of meeting its
gas goals. The decline in gas savings is largely driven by less savings able to be claimed from
home energy report savings persistence as well as the fact that the small and medium
business efficiency program was not active in FY 2019 as it is in the process of being updated
and launched.
Background
As a municipal utility that delivers electric, gas and water services to customers in its service
territory, CPAU is subject to state laws that govern resource conservation and related
expenditures. Key legislation that affects CPAU includes:
Assembly Bill (AB) 1890 (1996) requires publicly owned electric utility (POUs) to establish a
public benefit charge of 2.85% of revenue to fund any or all of the following “public benefit”
programs:
•Cost-effective, DSM services to promote energy-efficiency and energy conservation.
Staff: Karla Dailey
City of Palo Alto Page 2
•New investment in renewable energy resources and technologies consistent with
existing statutes and regulations that promote those resources and technologies.
•Research, development, and demonstration programs in the public interest which
advance science, or a technology not being adequately provided for by competitive and
regulated markets.
•Services for low-income electricity customers such as targeted energy-efficiency
installations.
Senate Bill (SB) 1037 (2005) requires each POU, in procuring energy, to first acquire all available
energy efficiency and demand reduction resources that are cost -effective, reliable and feasible.
AB 2021 (2006), as amended by AB 2227 (2012), requires POUs to develop annual electric
efficiency targets over ten years based on all potentially achievable cost-effective energy
savings, update the goals every four years, and provide annual reports to their customers and
the California Energy Commission. CPAU adopted its first ten -year electric and gas efficiency
targets in 2007 and has since updated these goals twice with the last update completed in
December 2012.
SB 1 (2006) requires all POUs to adopt, implement and finance a solar initiative program to
encourage the installation of residential and commercial solar energy systems.
AB 1470 (2007) requires each POU providing gas service to retail end -use gas customers to
adopt, implement and finance a solar water heating system incentive program.
SBx7-7 (2009) requires water suppliers to reduce the state average per capita daily water
consumption by 20% by December 31, 2020. This requirement is incorporated in the 2015
Urban Water Management Plan, adopted by California’s urban water suppliers including Palo
Alto.
SB 350 (2015) sets targets for utilities of 50% renewable electricity retail sales and double the
energy efficiency savings in electricity and natural gas, both by 2030. The law grants compliance
flexibility for publicly owned utilities that achieve 50% or more of retail sales from certain large
hydroelectric power.
Discussion
CPAU offers incentives and education programs for customers to encourage energy and water
efficiency, customer-owned renewable generation, and enrollment in voluntary renewable
energy programs. The table below summarizes the FY 2019 goals and achievements. As
shown, the achievements for electric and water efficiency exceeded the goals set for FY
2019. Gas savings missed the target as there was a drop off in commercial gas efficiency
projects.
City of Palo Alto Page 3
Goals versus Achievements
Resource
FY 2019
Savings Goals
(% of load)
FY 2019
Savings Achieved
(% of load)
FY 2019
Savings Achieved
Electricity 0.88% 1.02% 8,980 MWh
Gas 1.05% 0.57% 167,186 therms
Water 0.91% 3.04% 134,242 CCF
Despite not meeting all efficiency savings goals, the portfolio of programs generated cost-
effective savings across all three utilities. More information on this can be found in the report.
Furthermore, CPAU develops a range of marketing campaigns to promote gas, electric, and
water efficiency programs and increase public engagement. Promotional methods include
community outreach events, print ads in local publications, utility bill inserts, messaging on bills
and envelopes, website, email newsletters, videos for the web and local cable television
channels, and the use of social media (Twitter/Facebook/NextDoor/Videos).
The attached DSM Report provides details about CPAU’s FY 2019 DSM programs including costs
and resource savings by program and by end use, description of customer outreach efforts, and
research and development initiatives that are underway.
Stakeholder Engagement
CPAU receives significant stakeholder engagement on its demand side management programs
during the energy efficiency target setting performed every four years. In addition, many
program offerings are developed with input from community members, third party subject
matter experts, and feedback provided from the UAC and Council.
Environmental Review
The Demand Side Management Report is not subject to review under the California
Environmental Quality Act since receiving this report will have no foreseeable direct or indirect
physical change in the environment and therefore does not meet the definition of a Project
under Public Resources Code 21065.
Attachments:
• Attachment A: FY 2019 Demand Side Management Annual Report
Fiscal Year 2019 Demand Side Management Report
OVERVIEW:
The City of Palo Alto Utilities (CPAU) is the only city-owned utility in California that operates
its own utilities for electric, natural gas, water, fiber optic, storm drain, wastewater and refuse
services. We have been providing quality services to the citizens and businesses of Palo Alto
since 1896.
MISSION:
To provide safe, reliable, environmentally sustainable and cost-effective services.
STRATEGIC DIRECTION:
At CPAU, our people empower tomorrow’s ambitions while caring for today’s needs. We make
this possible with our outstanding professional workforce, leading through collaboration and
optimizing resources to ensure a sustainable and resilient Palo Alto.
PRIORITIES:
Workforce: We must create a vibrant and competitive environment that attracts, retains, and
invests in a skilled and engaged workforce.
Collaboration: We must collaborate with internal teams and external stakeholders to achieve
our shared objectives of enhanced communication, coordination, education, and delivery of
services.
Technology: We must invest in and utilize technology to enhance the customer experience
and maximize operational efficiency.
Financial Efficiency and Resource Optimization: We must manage our finances optimally and
use resources efficiently to meet our customers’ service priorities.
Attachment A
Fiscal Year 2019 Demand Side Management Report
TABLE OF CONTENTS
EXECUTIVE SUMMARY ..................................................................................................................... 3
1 ELECTRIC EFFICIENCY ACHIEVEMENTS ..................................................................................... 7
2 GAS EFFICIENCY ACHIEVEMENTS ........................................................................................... 10
3 WATER EFFICIENCY PROGRAMS ............................................................................................. 13
4 SUSTAINABLE ENERGY PROGRAMS ....................................................................................... 16
APPENDIX A: PROGRAM DESCRIPTION ........................................................................................... 19
APPENDIX B: FY 2019 ACHIEVEMENTS BY DSM PROGRAM ............................................................. 24
APPENDIX C: HISTORICAL DSM PROGRAM EXPENDITURES ............................................................. 26
APPENDIX D: CITY POLICIES/PLANS AND STATE MANDATES IMPACTING DSM PROGRAM GOALS AND
IMPLEMENTATION ........................................................................................................................ 27
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EXECUTIVE SUMMARY
The City of Palo Alto Utilities (CPAU) is pleased to issue the Demand Side Management (DSM)
Report for Fiscal Year (FY) 2019. This report is a useful public document showing the efficiency
achievements and customer programs. CPAU is committed to supporting environmental sustainability
through conservation of electric, gas and water resources. Additionally, CPAU promotes distributed
renewable generation, building electrification, and electric vehicles using incentives and educational
programs. CPAU accomplishes these goals by delivering a wide range of customer programs and
services as described in this report, and strives to do so while remaining personable and in-touch with
customer needs.
This annual report provides updates on:
♦ Electric and natural gas energy efficiency (EE) programs
♦ Water conservation programs
♦ Sustainability and carbon-reduction programs
♦ Customer engagement and satisfaction programs
♦ Achievements and expenditures
ENERGY EFFICIENCY AND WATER CONSERVATION GOALS AND ACHIEVEMENTS
CPAU offers incentives and education programs for customers to encourage energy and water
efficiency - Table ES.1 summarizes the FY 2019 efficiency goals and achievements. FY 2019
represents the second year of increased energy savings targets 1 established since SB 350 was enacted
in 2015 with the aim to double the energy efficiency savings in electricity and natural gas in buildings
by 2030. CPAU exceeded the higher new electricity efficiency savings goal for 2019 (using gross
accounting basis), while falling short of the goal for natural gas efficiency savings. The decline in gas
savings is partially driven by the suspension of the home energy report program which is scheduled to
resume in FY2021. Water efficiency savings dramatically increased in 2019, because a process to
collect data for water savings associated with the Green Building Ordinance was developed.
Table ES.1: Efficiency Goals versus Achievements
Resource
FY 2019
Savings Goals
(% of load)
FY 2019
Savings Achieved
(% of load)
FY 2019
Savings Achieved
Electricity 2 0.88% 1.02% 8,980 MWh
Gas 1.05% 0.57% 167,186 therms
Water 0.91% 3.04% 134,242 CCF
1 Electric goals: https://www.cityofpaloalto.org/civicax/filebank/documents/56087; Gas goals:
https://www.cityofpaloalto.org/civicax/filebank/documents/56113
2 Savings goals and savings achieved are given in Table ES.1 on a gross efficiency savings accounting basis. As a percentage
of load, the net electricity savings goal was 0.75% and the net savings achieved was 0.61% or 5,372 MWh. Net values
account for the impact of “free ridership” or customers who would have upgraded to more efficient measures without the
program or incentive. Gas and water goals and achievements are only tracked on a gross basis, and therefore electricity
efficiency savings are shown on a gross basis in Table ES.1 above for consistency.
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CPAU is committed to implementing all cost-effective energy and water efficiency measures (i.e. those
that are less expensive than supply-side resources). Table ES.2 summarizes the cost of efficiency over
the last three years compared to the projected cost of supply resources. Electric, natural gas, and
water efficiency portfolios were cost-effective compared to additional supply-side resources in FY
2019. Overall cost of the portfolios were lower than the historical average. New programs are planned
for launch in 2020-2021, and total expenditures are expected to increase as a result.
The rolling 3-year average provides the longest view for interpreting the cost effectiveness of
efficiency portfolios, as it accounts for yearly variations in program engagement and funding. The
rolling 3-year average shows that the electric and water efficiency portfolios have been cost-effective.
On the other hand, the 3-year average cost of gas efficiency savings is higher than the future supply.
This was driven by very high program costs in FY 2017 as well as inexpensive future supply. The FY
2018 and 2019 gas efficiency cost effectiveness has improved versus future supply cost of gas, but
staff continues to assess ways to improve the cost-effectiveness of the gas portfolio going forward.
The cost of both the electricity and natural gas efficiency portfolios are also negatively impacted by
the Home Efficiency Genie program. The Home Efficiency Genie program is a customer service
program that provides great educational value to Palo Alto residents but delivers fairly small energy
efficiency savings.
Table ES.2: Actual Levelized Efficiency Costs versus Projected Supply Costs
FY 2017
Efficiency
FY 2018
Efficiency
FY 2019
Efficiency
3-yr average
Efficiency
Future
Supply
Electric $/kWh $0.056 $0.034 $0.024 $0.038 $0.105
Gas $/therm $1.86 $0.56 $0.56 $0.99 $0.61
Water $/CCF $4.62 $4.71 $0.26 $3.20 $5.77
SUSTAINABILITY GOALS AND ACHIEVEMENTS
In FY 2019 efforts around building electrification and electric vehicle charger rebates were increased.
Staff also continued working with a marketing consultant to upgrade the marketing materials for all
programs including a full website migration. In addition, CPAU claimed energy savings for the third year
achieved by Palo Alto’s building energy reach code and improved the data collection process to claim
water savings. Staff worked with TRC, a third party auditor who conducted CPAU’s Evaluation,
Measurement & Verification to estimate and claim energy savings from projects that reported time
dependent valuation (TDV) energy summaries. Finally, CPAU was able to claim savings from its Business
New Construction program for one large project that took multiple years to complete but accounted
for a significant contribution to overall energy savings.
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CPAU supports a variety of programs designed to promote sustainability and reduce carbon emissions
in Palo Alto. The Electric Vehicle Supply Equipment (EVSE) rebate focuses on “hard-to-reach” market
segments for EV chargers by targeting multifamily dwellings, nonprofits and schools. The state-
mandated solar water heating program is not cost-effective; CPAU offers the program but does not
actively promote it. Given the lack of promotion and the low natural gas prices, installed solar water
heating systems continue to fall short of the goal. This program is expected to close at the end of July
2020, assuming no new legislation extends the state mandate.
Table ES.3: Sustainability Programs and Goals
Sustainability Program Program Goal FY 2019
Achievement
Cumulative Achievement
Through FY 2019
Heat-Pump Water Heater (HPWH)
Rebate
110 installed by July
2019 10 40
EV Charger Rebate (EVSE) 200-400 new charging
ports by 2021 8 22
Solar Water Heating Compliance – Not Cost
Effective 0 systems 68 systems since 2008
CUSTOMER SATISFACTION GOALS AND ACHIEVEMENTS
Supporting the community is at the heart of CPAU’s mission. CPAU offers some programs that are not
intended to achieve efficiency savings but are offered for educational value or as a customer service
program to increase customer satisfaction. Palo Alto once again hosted two educational workshops for
the SunShares program, which is a bulk buy program of PV systems for the nine counties comprising
the Bay Area. Once again Palo Alto was the number one outreach partner in number of systems installed
and kWs installed.
Table ES.4: DSM Program Areas
Community Engagement Program Program Goal FY 2019
Achievement
Cumulative Achievement
through FY 2019
Residential Satisfaction >50%3 76%4 -
SunShares PV GroupBuy PV capacity 76 kW 497 kW
Home Efficiency Genie 120 audits year 76 358
3 This goal is from the 2018 City of Palo Alto Utilities Strategic Plan in the priority area of Collaboration.
4 This residential satisfaction is from the 2018 RKS residential survey in Attachment D of the October 2, 2019 UAC report.
The survey is conducted every other year.
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HIGHLIGHTS OF FISCAL YEAR 2019
Three years after implementing the Business New Construction program, one large project was fully
closed out in FY2019 and the resulting energy savings were eligible to be claimed. Successful completion
of this project accounted for almost half of all gross electric savings.
The Commercial and Industrial Energy Efficiency Program is the flagship of CPAU’s commercial portfolio.
With three engineering firms working closely with CPAU Key Account Representatives, this program
provides the bulk of Palo Alto’s energy savings. The engineering firms assist customers with audits,
engineering studies, vendor selection, rebate processing and post-installation inspection making the
process as easy as possible for the customer. Roughly a quarter of the gross energy savings resulted
from this program. CPAU mirrored this program design into the residential market with the Home
Efficiency Genie as “Your Trusted Energy Advisor” and have begun seeing increased engagement with
residents.
CPAU added an EV Charger Rebate Program in late FY 2017, using funds from the Low Carbon Fuel
Standard credit sales and, in 2019, invested additional staff time to expand the program by contracting
with a third-party vendor to provide prospective customers with technical assistance. The EV Technical
Assistance Program launched in FY 2020. CPAU continues to promote the Heat Pump Water Heater
rebate program in effort to achieve the City’s S/CAP goals, but the program has relatively low
participation. Both EV charging rebates and the Heat Pump Water Program remained a high priority for
staff in FY 2019, reflecting the ongoing community priority of reducing CO2 emissions. Palo Alto
participated in the SunShares program again, which is a bulk buy program of PV systems for the nine
counties comprising the Bay Area, and once again Palo Alto was the number one outreach partner in
number of systems installed and kWs installed. Finally, CPAU continued buying carbon offsets to offset
the emissions of the entire natural gas portfolio.
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1 ELECTRIC EFFICIENCY ACHIEVEMENTS
1.1 Electric Efficiency Savings versus Goals
City Council approved CPAU’s first Ten-Year Energy Efficiency Portfolio Plan in April 2007,
which included a 10-year cumulative savings target of 3.5% of the forecasted energy use. As
mandated by California law, the electric efficiency targets have been periodically updated, with
the most recent 10-year cumulative savings goal set at 5.7% between 2018 and 2027. The goal
has been impacted by increasingly stringent statewide building codes and appliance standards.
The substantial energy savings from these “codes and standards” can no longer be counted
towards meeting CPAU’s EE program goals displayed below. With stricter codes and standards,
higher efficiency goals and over 30 years of running programs in Palo Alto, staff needs to
continue to innovate to maintain and increase efficiency savings.
CPAU’s electric efficiency savings goals and achievements as a percentage of the City’s
electricity usage are shown in Table 1 below. In FY 2019, on a gross efficiency savings basis,
CPAU achieved electric efficiency savings of 1.02% of its total electricity sales through its
customer efficiency programs. This exceeded the 2019 CPAU electric efficiency goal by 14%.
Table 1: Electric Savings versus Goals
Year Annual Savings
Goal (% of load)
Savings Achieved
(% of load)
Savings Achieved
(MWh)
Goal Source
FY 2008 0.25% 0.44% 4,399 2007
FY 2009 0.28% 0.47% 4,668
FY 2010 0.31% 0.53% 5,270
FY 2011 0.60% 0.58% 5,497 2010
FY 2012 0.65% 1.31% 12,302
FY 2013 0.70% 0.85% 8,074
FY 2014 0.60% 0.86% 8,218 2012
FY 2015 0.60% 0.65% 6,063
FY 2016 0.60% 0.59% 5,530
FY 2017 0.60% 0.65% 5,986
FY 2018 0.88%5 (0.75%) 1.00%5 (0.66%) 8,9885 (5,957) 20175
FY 2019 0.88%5 (0.75%) 1.02%5 (0.61%) 8,9805 (5,372)
5 Electricity efficiency savings goal and achievements are presented here on a gross basis, and the net numbers are added in
parenthesis for FY 2018 and 2019. CPAU will be reporting both net and gross electricity efficiency savings going forward,
due to discrepancies between anticipated net to gross ratios during the 2017 goal setting and actual net-to-gross ratios for
electric efficiency measures implemented. Staff is will be revising goals in 2020-2021 and is also considering a study specific
to Palo Alto to develop a local net-to-gross ratio for programs and measures.
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When accounting for the metric of “free-ridership” the net electric efficiency savings achieved
dropped to 0.61% of load, and experts have suggested a Palo Alto specific study to examine free-
ridership levels on incentive programs. Staff is currently weighing the relative impact of such a
study compared to investing program innovation. Since there is so much uncertainty in the levels
of free-ridership, the goals and achievements of the electric efficiency savings are presented on
both a net and gross basis. For context, gas and water efficiency measures are both reported on
a gross basis.
1.2 FY 2019 Electric Efficiency Savings by End Use and Customer Segment
Non-residential customers account for approximately 80% of CPAU’s electric sales, and non-
residential efficiency program savings represent about 83% of CPAU’s total electric efficiency
savings, as shown in Figure 1. Non-residential new construction and non-residential lighting
accounted for approximately 77% of the total electric portfolio savings. The City of Palo Alto’s
Energy Reach Code Ordinance is a local ordinance that exceeds state minimum efficiency
standards and also contributed substantial electricity efficiency savings.
Figure 1: Composition of Net Electric Efficiency Savings in FY 2019
Non-Res Lighting
30%
Non-Res New
Construction
47%
Non-Res Energy Reach
Code Ordinance
8%
Res Home
Energy Report
7%
Home Efficiency
Genie
1%
Multifamily Lighting
3%
Low-Income
1%
Other
3%
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Figure 2 shows the historical annual electric efficiency savings and annual electric
efficiency program expenditures.
Figure 2: FY 2008 to FY 2019 Electric Efficiency Savings and Expenditures
-
1,000
2,000
3,000
4,000
5,000
0.0%
0.4%
0.8%
1.2%
1.6%
2.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$
Th
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s
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s
Ac
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s
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s
%
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f
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a
d
Electric Efficiency Program Expenditures Net Savings Achieved as % of Load
Completion of a significant EE project at a
large commercial customer site
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2 GAS EFFICIENCY ACHIEVEMENTS
2.1 Gas Efficiency Savings versus Goals
In parallel with the development of ten-year electric goals, City Council adopted CPAU’s first
set of gas efficiency targets in 2007 to reduce 10-year gas consumption by 3.5%. The most
recent goal, set in 2017, is a 5.1% cumulative efficiency savings between 2018 and 2027. Gas
savings from heat-pump water heater rebate program are included below.
CPAU’s gas efficiency savings goals and achievements as a percentage of sales are shown in
Table 3. CPAU has continued to expand its gas efficiency program portfolio in the past several
years, with most gas savings delivered through third-party administered programs.
Table 3: Gas Savings versus Goals
Year Annual Savings
Goal (% of load)
Savings Achieved
(% of load)
Savings Achieved
(therms)
Goal Source
FY 2008 0.25% 0.11% 35,057 2007
FY 2009 0.28% 0.29% 146,028
FY 2010 0.32% 0.35% 107,993
FY 2011 0.40% 0.55% 164,640 2010
FY 2012 0.45% 0.74% 220,883
FY 2013 0.50% 1.13% 327,077
FY 2014 0.50% 1.20% 337,079 2012
FY 2015 0.50% 0.92% 229,373
FY 2016 0.55% 1.08% 289,442
FY 2017 0.55% 0.81% 228,707
FY 2018 1.00% 0.93% 264,960 2017
FY 2019 1.05% 0.57% 167,186
2.2 FY 2019 Gas Efficiency Savings by End Use and Customer Segment
Non-residential customers account for 52% of CPAU’s gas sales, and in FY 2019, non-residential
gas efficiency savings represented about 47% of CPAU’s total gas savings. Non-residential HVAC
comes from customers who upgrade HVAC equipment. Home Energy Reports (HERs), which
compare customers’ electricity and gas usage to that of similar homes, were discontinued in FY
2015 but provided savings based on assumed persistence of the program’s effects 6. In FY 2019,
the HER program accounted for 35% of total gas savings and is the final year persistence will be
claimed. Had Palo Alto been able to roll out the new Home Energy Report earlier we would have
30% higher gas savings. This program is currently being configured, and will hopefully help
customers begin saving natural gas in FY2021. Figure 3 shows the breakdown of gas savings in
FY 2019 by end use. The City of Palo Alto’s Energy Reach Code Ordinance is a local ordinance
that exceeds state minimum efficiency standards and also contributed natural gas efficiency
savings.
6 Savings from a behavioral program can be claimed at a declining level for five years after it closes (Cadmus 2015 report).
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Figure 3: Composition of Natural Gas Efficiency Savings in FY 2019
Non-Res HVAC
35%
Non-Res Service and
Domestic Hot Water
8%
Non-Res Energy
Reach Code Ordinance
1%
Res Home Energy
Report
36%
Home Efficiency
Genie
12%
Low Income
3%
Heat Pump
Water Heater
1%Other
4%
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Figure 4 compares the historical annual gas efficiency savings and annual gas DSM
expenditures.
Figure 4: FY 2008 to FY 2019 Gas Efficiency Savings and Expenditures
-
300
600
900
1,200
1,500
0.0%
0.3%
0.6%
0.9%
1.2%
1.5%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$
Th
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s
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s
Ac
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%
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Gas Efficiency Program Expenditures Actual Savings Achieved as % of Load
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3 WATER EFFICIENCY PROGRAMS
3.1 Water Efficiency Savings versus Goals
CPAU’s water savings goals and achievements as a percentage of sales are shown in Table 5.
Table 5: Water Savings versus Goals
Year Annual Savings Goal
(% of load)
Savings Achieved
(% of load)
Savings Achieved
(CCF)
FY 2008 0.34% 0.72% 39,323
FY 2009 0.34% 0.98% 52,983
FY 2010 0.34% 1.35% 68,948
FY 2011 0.90% 0.47% 23,409
FY 2012 0.91% 1.09% 55,067
FY 2013 0.91% 0.53% 26,513
FY 2014 0.91% 0.64% 32,325
FY 2015 0.91% 1.54% 68,227
FY 2016 0.91% 1.96% 74,484
FY 2017 0.91% 1.40% 57,154
FY 2018 0.91% 0.47% 23,209
FY 2019 0.91% 3.04% 134,242
The City partners with the Santa Clara Valley Water District (Valley Water) to provide water
conservation programs. Valley Water administers the programs for Palo Alto customers, and
CPAU markets and promotes the programs. FY 2019 is the first year the City has claimed savings
associated with the City of Palo Alto’s Green Building Ordinance. Historically, participants were
not required to submit water savings data, but the City began collecting that information at the
end of FY 2018. Local ordinances such as the City of Palo Alto’s Green Building Ordinance are
generally agreed to be an effective way to improve conservation and the FY2019 water efficiency
and savings data proves this out.
3.2 FY 2019 Water Efficiency Savings by End Use and Customer Segment
The Green Building Ordinance accounted for nearly 90% of all water savings with the remaining
10% coming from the water programs administered by Valley Water.
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Figure 5: Composition of Water Efficiency Savings in FY 2019
Green Building
Ordinance
89%
Valley Water
11%
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Figure 6 compares the historical annual water efficiency savings and annual water DSM
expenditures.
Figure 6: FY 2008 to FY 2019 Water Efficiency Savings and Expenditures
-
200
400
600
800
1,000
0.0%
0.4%
0.8%
1.2%
1.6%
2.0%
2.4%
2.8%
3.2%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$
Th
o
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Water efficiency program expenditures ($)Actual water savings as % of load
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4 SUSTAINABLE ENERGY PROGRAMS
4.1 Overview of Sustainable Energy Programs
CPAU offers a variety of programs to encourage residents and non-residents to improve the
environmental impacts associated with their gas and electric consumption. Customer-side
renewable generation programs are available to support the installation of both solar
photovoltaic (PV) and solar water heating (SWH) systems.
4.2 PV System Installation Achievements versus Goals
As of the end of FY 2019, there were a total of 1,168 PV installations (1,139 residential, 85 non-
residential, 6 CLEAN) since CPAU began supporting local solar PV installations in 1999. These
customer-side generation systems are not included in CPAU’s Renewable Portfolio Standard
(RPS) supply requirements. In FY 2018, the first PV system went live for the Clean Local Energy
Accessible Now (CLEAN) program, which purchases electricity from renewable energy
generation systems in CPAU’s service territory. The CLEAN program provides a Feed-In-Tariff
rate of $0.165/kwh for the first 3 MW of installed capacity. Nearly half of the capacity was
reserved in FY 2018 with the remaining capacity reserved in FY 2019.
In 1999 CPAU began offering incentives for PV system installations through the PV Partners
Program. In FY 2008 the PV rebate budget was increased as mandated by Senate Bill 1 (2006)
and Palo Alto’s share of the state-wide goal established by SB 1 was 6.5 MW by 2017. By June
30, 2017, Palo Alto exceeded its share of the state-wide goal, with a total capacity of all Palo
Alto PV systems at 8.6 MW, generating about 1.5% of the City’s annual electric energy needs.
The PV rebate funds were fully reserved in August 2014 for residential projects and in April 2016
for commercial projects, but rebate payments are expected to continue through FY 2023 due to
the five-year performance-based incentive schedule. Residents and commercial customers
continue to install solar without a rebate largely due to the continued decrease in solar
installation costs, net metering and the 30% Federal Tax Credit.
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Figure 7: Photovoltaic (PV) Installations by Fiscal Year
Figure 8: PV System Capacity (kW) added by Fiscal Year
FY00-
07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
CLEAN 3 3
Res 176 112 43 52 44 49 49 103 93 131 84 77 64
Non-Res 9 5 9 2 2 4 3 10 9 5 7 8 12
0
50
100
150
200
In
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FY00-
07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
CLEAN 1,500 1,500
Res 542 328 152 205 187 195 214 543 474 633 409 449 375
Non-Res 123 227 1,037 15 295 249 49 1,383 378 465 508 1,049 591
0
500
1,000
1,500
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4.3 Solar Water Heating System Installation Achievements versus Goals
A total of 68 solar water heating (SWH) systems have been installed since CPAU began offering
SWH rebates to residential and commercial customers in 2008. The SWH rebate program was
mandated by AB 1470 (2007) and was recently extended for two additional years by AB 797
(2017). It is administered by the Center for Sustainable Energy (CSE), which also administers
SWH rebate programs in the San Diego area. As shown in Figure 9, the number of SWH systems
installed has been consistently below target, primarily due to low gas prices which reduce the
cost-effectiveness of SWH systems. Unlike PV systems, the cost for SWH systems has not
decreased over time.
Figure 9: Customer-Side Solar Water Heating Systems—Program Achievements versus Annual Goal of
30
7 17 10 1 1 11 15 1 1 4 0
0%
25%
50%
75%
100%
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Installed by Fiscal Year Installation Goal
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APPENDIX A: PROGRAM DESCRIPTION
The programs offered by CPAU are designed to assist all customer groups achieve efficiency savings in
electricity, natural gas and water in a cost-effective manner. Please see Appendix B for the savings totals
associated with each program.
RESIDENTIAL PROGRAMS
• Home Efficiency Genie
The Home Efficiency Genie (HEG) has become CPAU’s flagship residential program. Launched in
June 2015, the program enables our residents to call the ‘Genie’ to get free utility bill reviews
and phone consultations. For a fee, residents also have the option to receive an in-depth home
efficiency assessment which includes air leakage testing, duct inspections, insulation analysis,
energy modeling and a one-on-one review of assessment reports with an energy expert. This
package is also followed up with guidance and support throughout home improvement projects.
The HEG program has a high educational component for Palo Alto residents, which likely leads to
additional savings that staff cannot track and include in this program’s savings totals. The Genie
also tables at various events throughout the year. In FY 2019, the Genie continued to be the
gateway to all of CPAU’s residential programs.
• Educational Programs and Workshops
A variety of educational programs and workshops are held throughout the year. Typically,
residential workshops on water and energy programs occur in the spring near Earth Day and in
the “Summer Workshop Series.” Many workshops focus on water efficiency, landscaping, energy
efficiency, solar, home comfort and green building. CPAU is also invited to table at various events
throughout the year to educate residents about the various programs we offer. Customers also
receive timely E-newsletters on a variety of efficiency matters.
• Home Energy Reports
CPAU stopped providing residents with individualized reports comparing their home energy use
with neighbors in similarly sized homes in FY 2015. The program was ended due to customer
complaints about being compared to neighbors, as well as disputes over the basis of the
comparison. Staff began focusing on developing a portal that could replace both reports, but the
portal vendor later discontinued their product. Studies have shown that savings persist after the
program has ended but decrease at a rate of 20% per year, so some reduced savings are still
claimed (Cadmus 2015 report).
• MultiFamily Residence Plus+ Program
This first-ever CPAU program focusing on multifamily buildings provides free, direct installation
of EE measures to multifamily residences with 4 or more units including hospices, care centers,
rehab facilities and select small and medium commercial properties. In its first year the program
focused on energy-efficient lighting and insulation upgrades. In the summer of 2016, the program
was revamped to include more LED lighting upgrades as the price of LEDs had decreased and the
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quality of the lights improved greatly. The addition of LEDs drew excitement from many property
managers and building owners who were initially not interested in participating in the program.
As a result, CPAU will continue to re-evaluate the program to accommodate this underserved
market. Staff expects energy savings to remain high for this program, with a focus on upgrading
below-market-rate apartment complexes.
• Residential Energy Assistance Program (REAP)
REAP provides weatherization and equipment replacement services at no cost to low-income
residents and those with certain medical conditions. This program has equal focus on efficiency
and comfort, and therefore it is not included in the cost effectiveness calculation used in
reporting. The program provides LED lighting, heating system upgrades, insulation for walls and
roofs and weather-stripping for doors and windows.
• Do-It-Yourself Water-Wise Indoor Survey
Palo Alto residents can request a free indoor water survey kit that can help conserve water and
save money on utility bills. Residents also become educated on opportunities for conservation in
their homes, and they can request free tools to improve efficiency. The program is offered in
partnership with the Valley Water.
• Free Water-Wise Outdoor Survey
Palo Alto residents can schedule a free outdoor survey with a trained irrigation professional. The
trained specialist will provide an on-site evaluation of the resident’s irrigation system and provide
recommended upgrades and repairs. The program is offered in partnership with the Valley
Water.
• Landscape Rebate Program (LRP)
The Landscape Rebate Program provides rebates for various irrigation hardware upgrades,
including rain sensors, high-efficiency nozzles, dedicated landscape meters, and weather-based
irrigation controllers, as well as landscape conversion rebates that encourage residential and
commercial customers to replace high-water-use landscaping with low-water-use landscaping.
During FY 2016 residents were eligible to receive rebates of $3.00/square foot ($2.00 from Valley
Water and $1.00 from CPAU). A new agreement with Valley Water was signed in early 2017,
continuing our partnership in the LRP. Residents are now eligible to receive rebates of $2/square
foot of replaced landscaping ($1.00 from Valley Water and $1.00 from CPAU).
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BUSINESS PROGRAMS
• Commercial Advantage Program
Business customers are offered rebates for investments in a catalog of energy efficiency products
including lighting, motors, HVAC and custom projects that target peak demand and energy
reductions.
• Commercial and Industrial Energy Efficiency Program (CIEEP)
This is the fourth year that CPAU expanded this program to offer Key Accounts (the largest
commercial energy users in Palo Alto) the option of picking one of three engineering consulting
firms to assist in helping them evaluate and implement energy efficiency projects. Designed for
the large commercial customer, CIEEP offered highly effective building commissioning services
using third-party contractors Enovity, Ecology Action and BASE. The contracts were extended in
June 2018 for two additional years. This assistance included reviewing lighting and
heating/cooling systems and their operating specifications. Customers then obtained rebates for
replacing chillers, building control systems, linear fluorescent lighting, occupancy sensors, boilers
and insulation.
• Empower SMB
Through third party vendors, this program assisted the installation of electric and gas efficiency
savings measures for small and medium sized business customers. This program ended in FY 2018
and is being revamped to launch in FY 2020 but may not generate savings until FY 2021.
• Commercial and Industrial Water Efficiency Program
CPAU partners with the Valley Water to provide non-residential customers with free landscape
irrigation audits, and direct installation of high-efficiency toilets and urinals. Rebates are available
for facility process improvements, landscape conversions, irrigation hardware upgrades and
weather-based irrigation controllers.
• Landscape Survey and Water Budget Program
Through Valley Water, the City provides landscape irrigation surveys, water budgets and
customized consumption reports for customers with large landscape sites. The service is
provided by Waterfluence. The water budget for each landscape site is derived based on the
amount of irrigated area, type of plants, type of irrigation system and real-time weather
monitoring. Monthly reports documenting a site’s irrigation performance are distributed to site
managers, landscapers, HOA board members and other relevant parties, as approved by utility
account holders. Through a web portal, customers can access site-specific recommendations,
verify water budget assumptions and request a free landscape field survey from an irrigation
expert. This program has been in place since 2012 and to date there are 118 large landscape sites
covered under this program.
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• PaloAltoGreen
This highly successful program enabled residents and businesses to pay a small premium for
100% renewable energy. In June 2014, Council terminated PaloAltoGreen for residential
customers since the City’s electric supplies are 100% carbon neutral. Commercial customers can
still participate in this program by enrolling in the PaloAltoGreen 100% option or by purchasing
blocks in 1,000 kWh increments. Participation enables commercial customers to be recognized
under the U.S. EPA Green Power Leadership program or to earn Leadership in Energy and
Environmental Design (LEED) Green Power credits.
• Palo Alto Clean Local Energy Accessible Now (CLEAN) Program
Through the CLEAN (Clean Local Energy Accessible Now) program CPAU offers a feed-in tariff,
wherein developers of renewable energy generation projects in Palo Alto can receive a long-term
purchase agreement for the output of their projects. All the generated electricity is procured to
contribute towards fulfilling Palo Alto’s Renewable Portfolio Standard (RPS) requirement. For
fiscal year 2018, the prices are 16.5 ¢/kWh fixed for 15, 20 or 25 years for solar renewable energy
resources, up to a capacity limit of 3 MW (and 8.8 ¢/kWh for a 15-year contract term, 8.9 ¢/kWh
for a 20-year contract term or 9.1 ¢/kWh for a 25-year contract term beyond that limit), and 8.3
¢/kWh for a 15-year contract term, 8.4 ¢/kWh for a 20-year contract term and 8.5 ¢/kWh for a
25-year contract term for non-solar eligible renewable energy resources. At the end of FY 2019,
3MW were reserved of the program’s 3 MW limit.
• EV Charger Rebate Program
The California Air Resources Board (CARB) developed the Low Carbon Fuel Standard (LCFS)
program in compliance with AB 32 (the Global Warming Solutions Act of 2006) to reduce the
carbon intensity of transportation fuels used in California 10% by 2020. Electric utilities that
provide electricity to charge electric vehicles (EVs) are eligible to receive LCFS credits. The City
began participating in the program in April 2014 and CARB has been allocating LCFS credits to the
City since then. Using funds from the sale of LCFS credits, CPAU launched an EV charger rebate
program in FY 2017 to help build out EV infrastructure in anticipation of an increase in the
number of EVs in Palo Alto from its current level of 2,500 to between 4,000 and 6,000 EVs by
2020. Staff determined that providing EVSE rebates for underserved segments of the market
would be valuable which would include multi-family and mixed-use buildings, schools and non-
profits. The LCFS funds are also used for EV education and outreach efforts.
PROGRAMS FOR ALL CUSTOMER SEGMENTS
• PV Partners
CPAU has offered incentives for local solar photovoltaic (PV) installations since 1999, and the
City increased the PV rebate budget in 2007 as mandated by SB 1 (2006). Residential rebates
were fully reserved in August 2014, and funds for non-residential PV systems were reserved in
April 2016. This program is for systems interconnected behind the customer’s electric meter, and
customers receive net metering billing as required by SB 1.
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• Solar Water Heating
CPAU began to offer rebates to residential and commercial customers that install solar water
heating (SWH) systems in 2008. The SWH rebate program was mandated by AB 1470 (2007) and
is administered by the Center for Sustainable Energy, which also administers SWH rebate
programs in the San Diego area. AB 797 recently extended the SWH mandate for two additional
years. Incentives are limited to solar water heating for domestic use; solar water heating systems
for pools, spas, or space heat are not eligible.
• Green Building Ordinance
In April 2015, City Council approved revisions to the City’s Green Building Ordinance (GBO), which
includes the Local Energy Efficiency Reach Code requiring new construction projects to exceed
California’s building energy efficiency standards (“2013 Title 24 Standards”) by 15%, i.e. a
building’s energy consumption must be 15% more efficient than current building code. The
Energy Efficiency Reach Code took effect in September 2015. The new 2016 Title 24 Standards
went into effect in January 2017 and the GBO mandates that new buildings be 10% more efficient
than the new stricter code. CPAU is coordinating with Development Services to report the energy
savings attributed to the Green Building Ordinance. CPAU is currently investigating ways to
educate, assist and encourage customers to adopt green building principles and energy efficient
systems when planning remodeling or new construction projects.
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APPENDIX B: FY 2019 ACHIEVEMENTS BY DSM PROGRAM
Table B.1: FY 2019 Achievements by Efficiency Program 7
Program Electric savings Gas savings Water savings
kWh/yr % Therms/yr % CCF/yr %
COM-Business New
Construction 4,205,869 47% 6,083 4% 0 0%
COM-Com. Advantage 619,266 7% 13,541 8% 0 0%
COM-CIEEP 2,393,911 27% 59,289 35% 0 0%
RES-HPWH -8,610 8 0% 1,410 1% 0 0%
RES-Home Efficiency Genie 35,641 0% 19,656 12% 12 0%
RES-Home Energy Report 657,110 7% 59,886 36% 0 0%
RES-MultiFamilyPlus 230,641 3% 57 0% 0 0%
RES-REAP Low Inc 92,119 1% 5,666 3% 0 0%
SVWD 0 0% 0 0% 14,295 11%
Green Building Ordinance 753,862 8% 1,598 1% 119,935 89%
Efficiency Total 8,979,809 100% 167,186 100% 134,242 100%
7 All savings reported in this table are gross amounts. Net savings can be found in this year’s state filing found here:
https://www.ncpa.com/policy/reports/energy-efficiency/
8 State utility and energy commissioners are evaluating fuel-substitution measures, like heat pump water heaters, and once
a final decision is adopted, staff will align our reporting methodology for electrification measures with whatever state
methodology is implemented. For this year, we are showing the increase in electricity consumption associated with heat
pump water heaters as negative amount of energy savings.
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Table B.2: FY 2019 Achievements by CPAU’s Solar Programs
Program Number of
Installations
Electricity
kW Saved
kWh/yr %
PV - Residential 64 375 600,000 15%
PV – Commercial (w/ CLEAN) 15 2,091 3,345,600 85%
Solar Water Heating - Single
Family Residential 0 - - -
Solar Water Heating - Multi-
Family Residential Low-Income 0 - - -
Solar Water Heating -
Commercial 0 - - -
Solar Programs Total 89 2,466 3,945,600 100%
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APPENDIX C: HISTORICAL DSM PROGRAM EXPENDITURES
The chart below shows expenditures by type from FY 2012 through FY 2019. The Solar Renewables
category is the sum of expenditures for solar water heating and PV Partners programs.
Figure C.1 DSM Expenditures for Electricity, Gas and Water by Year and Function
$0 $1 $2 $3 $4 $5 $6 $7
2012
2013
2014
2015
2016
2017
2018
2019
Millions
Fi
s
c
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Y
e
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Electric Efficiency Gas Efficiency
Water Efficiency Solar Renewables
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APPENDIX D: CITY POLICIES/PLANS AND STATE MANDATES
IMPACTING DSM PROGRAM GOALS AND IMPLEMENTATION
CITY POLICIES/PLANS
Title Description
Resolution No. 9241 LEAP, the Long-term Electric Acquisition Plan (April 2012)
Resolution No. 9322 Carbon Neutral Plan for Electric Supply (March 2013)
Resolution No. 9402 Local Solar Plan (April 2014)
Staff Report 3706 Program for Emerging Technology (April 2013)
Staff Report 2552 GULP, the Gas Utility Long-term Plan (April 2012)
Staff Report 6851 2015 Urban Water Management Plan (May 2016)
Staff Report 7304 Sustainability and Climate Action Plan (November 2016)
Staff Report 7718 Update of Ten-Year Energy Efficiency Goals for 2018 to 2027 (March
2017)
FULL LIST OF STAFF REPORTS
• CY 2015: cityofpaloalto.org/gov/agendas/city_managers_reports/2015.asp
• CY 2016: cityofpaloalto.org/gov/agendas/city_managers_reports/2016.asp
• CY 2017: cityofpaloalto.org/gov/agendas/city_managers_reports/2017.asp
• CY 2018: cityofpaloalto.org/gov/agendas/city_managers_reports/2018.asp
• CY 2019: cityofpaloalto.org/gov/agendas/city_managers_reports/2019.asp
STATE MANDATES
AB 797 (2017) Extends existing Solar Water Heating Programs and changes the terminology of
“water heating” to “solar thermal.”
AB 802 (2015) Requires utilities to maintain records of the energy usage data of all buildings to
which they provide service for at least the most recent 12-month period and, upon
the request and authorization of the owner (or owner's agent), provide aggregated
energy usage data to the owner in the ENERGY STAR Portfolio Manager.
AB 1164 (2015) Prohibits cities and counties from enacting or enforcing any ordinance or regulation
prohibiting the installation of drought tolerant landscaping, synthetic grass, or
artificial turf on residential property.
AB 1236 (2015) Obliges cities and counties to adopt an ordinance, with certain specific elements,
creating an expedited permitting process for electric vehicle charging stations. For a
city the size of Palo Alto, the ordinance must be passed by September 30, 2017.
SB 350 (2015) The Clean Energy and Pollution Reduction Act of 2015 sets targets for utilities of 50%
renewable electricity retail sales and double the energy efficiency savings in
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electricity and natural gas, both by 2030. The law grants compliance flexibility for
POUs that achieve 50% or more of retail sales from certain large hydroelectric power.
AB 2188 (2014) Requires a city and/or county to adopt an ordinance creating an expedited,
streamlined permitting process for small residential rooftop solar energy systems.
Executive Order Due to continued water shortages, on January 17, 2014, the Governor proclaimed a
State of Emergency and directed state officials to take all necessary actions to make
water immediately available. Part of the proclamation included a 20 percent water
reduction goal. On April 1, 2015, the Governor issued an Executive Order (B-36-15)
mandating the State Water Resource Control Board impose restrictions leading to a
25 percent reduction in potable water use through February 28, 2016.
SB 1420 (2014) Added a requirement to report on distribution system water loss to the UWMP.
SB 73 (2013) The California Clean Energy Jobs Act, an initiative approved by the voters as
Proposition 39 at the November 2012 statewide general election, establishes a Job
Creation Fund with an annual budget of $550M to create clean energy jobs, including
funding energy efficiency projects and renewable energy installations in public
schools, universities, and other public facilities. The Job Creation Fund will be
funded for four years, beginning in the 2013-2014 fiscal year.
AB 2227 (2012) AB 2227 changed the triennial energy efficiency target-setting schedule to a
quadrennial schedule, beginning March 15, 2013 and every fourth year thereafter.
The last EE goals update was due to be submitted to the California Energy
Commission by March 15, 2017. The next EE goals update will need to be submitted
by March 15, 2021.
AB 2514 (2010) Mandates a local publicly owned electric utility to determine appropriate targets, if
any, for the utility to procure viable and cost-effective energy storage systems and
to adopt an energy storage system procurement target, if appropriate, to be
achieved by the utility by December 31, 2016, and a second target to be achieved by
December 31, 2021.
SBx7-7 (2009) The Water Conservation Bill of 2009 requires water suppliers to reduce the
statewide average per capita daily water consumption by 20% by December 31,
2020. To monitor the progress toward achieving the 20% by 2020 target, the bill
also requires urban retail water providers to reduce per capita water consumption
10% by the year 2015.
AB 1103 (2007) Requires electric and gas utilities maintain records of the energy consumption data
of all nonresidential buildings to which they provide service and that by January 1,
2009, upon authorization of a nonresidential building owner or operator, an electric
or gas utility shall upload all of the energy consumption data for the specified
building to the EPA Energy Star Portfolio Manager in a manner that preserves the
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confidentiality of the customer. This statute further requires a nonresidential
building owner or operator disclose Energy Star Portfolio Manager benchmarking
data and ratings, for the most recent 12-month period, to a prospective buyer,
lessee, or lender. Enforcement of the latter requirement began on January 1, 2014.
AB 1470 (2007) Solar Water Heating and Efficiency Act of 2007. Requires the governing body of
each publicly owned utility providing gas service to retail end-use gas customers,
to adopt, implement, and finance a solar water heating system incentive program.
SB 1 (2006) The California State Legislature enacted SB 1 to encourage the installation of 3,000
megawatts (MW) of photovoltaic (PV) solar energy by the year 2017. SB 1
requires all publicly owned utilities to adopt, finance and implement a solar initiative
program for the purpose of investing in and encourage the increased installation of
residential and commercial solar energy systems. CPAU’s share of the state goal is
6.5 MW. In 2007, CPAU increased the PV Partners program funding to meet SB1
requirements. CPAU has fully reserved all rebate funds as of April 2016.
AB 2021 (2006) Requires the CEC on or before November 1, 2007, and every 3 years thereafter, in
consultation with the commission and local publicly owned electric utilities, to
develop a statewide estimate of all potentially achievable cost-effective electricity
and natural gas efficiency savings and establish statewide annual targets for energy
efficiency savings and demand reduction over 10 years.
AB 1881 (2006) Requires cities and counties to implement a Water Efficient Landscape Ordinance
which is “at least as effective as” the Department of Water Resources (DWR) Model
Ordinance in reducing landscape water use. Requirements include enforcing water
budgets, planting and irrigation system specifications to meet efficiency criteria.
SB 1037 (2005) Requires each local publicly owned electric utility, in procuring energy, to first
acquire all available energy efficiency and demand reduction resources that are cost-
effective, reliable, and feasible. Also requires each local publicly owned electric
utility to report annually to its customers and to the (CEC) its investment on energy
efficiency and demand reduction programs.
AB 1890 (1996) Requires electric utilities to fund low-income ratepayer assistance programs, public
purpose programs for public goods research, development and demonstration,
demand- side management and renewable electric generation technologies
AB 797 (1983) The Urban Water Management Planning Act (AB 797) requires all California urban
water retailers supplying more than 3,000 acre feet per year or providing water
to more than 3,000 customers to develop an UWMP. The plan is required to be
updated every five years and submitted to the Department of Water Resources
before December 31 on years ending in 5 and 0.