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Home My WebLink About2021-06-02 Utilities Advisory Commission Agenda PacketMATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE COMMISSION AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE UTILITIES ADVISORY COMMISSION WEBPAGE. 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. NOTICE IS POSTED IN ACCORDANCE WITH GOVERNMENT CODE SECTION 54954.2(a) OR 54956 Supporting materials are available online at https://www.cityofpaloalto.org/gov/boards/uac/default.asp on Thursday, 5 days preceding the meeting. ****BY VIRTUAL TELECONFERENCE ONLY**** Join Zoom Webinar Here Meeting ID: 966 9129 7246 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 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. AGENDA REVIEW AND REVISIONS III. 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. IV. APPROVAL OF THE MINUTES May 12, 2021 Draft Minutes will be set for Review on July 07, 2021 V. UNFINISHED BUSINESS - None VI. UTILITIES DIRECTOR REPORT VII. NEW BUSINESS 1. Selection of Officers Action 2. Discussion and Update of the Wildfire Mitigation Plan Discussion 3. Discussion and Update on the Utilities MyCPAU Customer Portal Discussion 4. Discussion and Overview of the 2021 City Survey Discussion VIII. COMMISSIONER COMMENTS and REPORTS from MEETINGS/EVENTS IX. FUTURE TOPICS FOR UPCOMING MEETINGS: July 7, 2021 UTILITIES ADVISORY COMMISSION – SPECIAL MEETING WEDNESDAY, June 2, 2021 – 5:00 P.M. ZOOM Webinar Chairman: Lisa Forssell  Vice Chair: Lauren Segal  Commissioners: Michael Danaher, Donald Jackson, A.C. Johnston, Greg Scharff, and Loren Smith  Council Liaison: Eric Filseth MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE COMMISSION AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE UTILITIES ADVISORY COMMISSION WEBPAGE. 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. SUPPLEMENTAL INFORMATION - The materials below are provided for informational purposes, not for action or discussion during UAC Meetings (Govt. Code Section 54954.2(a)(3)). Informational Reports 12-Month Rolling Calendar Public Letter(s) to the UAC • Informational Update on the Utilities Quarterly Report for Q1&2 of FY 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE COMMISSION AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE UTILITIES ADVISORY COMMISSION WEBPAGE. 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. A. You may download the Zoom client or connect to the meeting in-browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. B. You will be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. C. When you wish to speak on an agenda item, click on “raise hand.” The Attendant will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. D. When called, please limit your remarks to the time limit allotted. E. A timer will be shown on the computer to help keep track of your comments. 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 long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. Join Zoom Webinar Here Meeting ID: 966-9129-7246 City of Palo Alto (ID # 12190) Utilities Advisory Commission Staff Report Report Type: New Business Meeting Date: 6/2/2021 City of Palo Alto Page 1 Summary Title: Wildfire Mitigation Plan Updates Title: Discussion and Update of the Wildfire Mitigation Plan From: City Manager Lead Department: Utilities Recommendation This report is presented for the Utilities Advisory Commission (UAC) discussion and no action is required. Executive Summary The purpose of this report is to present to the UAC the annual update to the City of Palo Alto Utilities (CPAU) Wildfire Mitigation Plan (WMP). Following this public meeting and opportunity for public comment, CPAU will submit the 2021 WMP Update to the California Wildfire Safety Advisory Board by July 1, 2021. Attachment B to this report contains the 2021 update to the WMP. The updates this year are to the WMP’s Appendix F (Status of Proposed Activities). For the purpose of this UAC report, the WMP appendi x is presented in Attachment C with changes from the 2020 WMP shown in redline. Background In 2019, a new law1 mandated that electric publicly owned utilities prepare a wildfire mitigation plan. The law required the wildfire mitigation plan to incorporate specified information and procedures, as deemed necessary by the electric utility. The City’s first WMP was reviewed by an independent evaluator and was received by Palo Alto City Council on January 21, 2020 (report). Discussion The attached mitigation plan is a collaborative effort between Utilities, Fire, Public Works – Urban Forestry, Open Space, and Office of Emergency Services departments. Each department performs a critical role in preventing wildfires from occurring and communicating information to the public and outside agencies. Per the law, the Mitigation Plan concentrates primarily on wildfires associated with overhead electric utility infrastructure but many of the activities 1 Public Utilities Code 8387, modified by SB 901 (Dodd). Staff: Jim Pachikara; Tikan Singh; Debra Lloyd CITY OF PALO ALTO City of Palo Alto Page 2 overlap with general procedures for each department. Notable updates this year to the proposed activities include: • Rebuild of overhead lines in the Foothills – As updated to the UAC in March 2021 (report), Utilities initially solicited bids for a design/build contractor to rebuild, relocate, or replace the overhead lines in the Foothills. However, after reviewing bids, Staff is proceeding with an alternative solution to convert the Foothill overhead lines to underground. Staff will design this in-house and contract as needed for construction, with an anticipated completion target of summer 2025 . Two short sections of the Foothills overhead lines were identified to test the practicality and cost of undergrounding the lines, with the second segment currently in construction. These first two segments eliminated twelve (12) poles and the associated overhead wire and hardware that is the main risk to causing wildfires from electrical facilities. A few other activities listed in Appendix F of the WMP (new construction standards, fiber optic cable extension, and SCADA Switch installation) are integrated with the rebuild and so their target dates have been adjusted to coordinate with the rebuild . Timeline The WMP will be updated annually, presented in a publicly noticed meeting and submitted to the California Wildfire Safety Advisory Board by July 1 of each year. At least once every three years, the City shall complete a comprehensive revision of the WMP along with an independent evaluator review. A comprehensive revision and third party evaluation of CPAU’s WMP is due by July 1, 2023. Resource Impact The Utilities Wildfire Mitigation Plan does not have any immediate resource impact besides the staff time to develop the plan and its updates. Ongoing and proposed activities listed in the plan are and will be approved annually through the Capital and Operating Budget process. Policy Implications CPAU verifies that the wildfire mitigation plan complies with all applicable rules, regulations, and standards, specifically with PUC Section 8387, as appropriate. Stakeholder Engagement The annual presentation of updates to the WMP in a publicly noticed meeting provides an opportunity to hear and accept comments on the plan from the public, other local and state agencies, and interested parties. Environmental Review The UAC’s receipt of this report is not a project requiring California Environmental Quality Act review, because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. Attachments: City of Palo Alto Page 3 • Attachment A: Presentation • Attachment B: Utilities Wildfire Mitigation Plan Update • Attachment C: Appendix F Utilities Wildfire Mitigation Plan Update June 2, 2021 Attachment A A c1Tv OF WPALO ALTO 2 Background information California legislation (Senate Bill 901) requires electric utilities to prepare a Wildfire Mitigation Plan and update it annually. The Utilities’ Wildfire Mitigation Plan will be updated annually, presented in a publicly noticed meeting and submitted to the California Wildfire Advisory Board by July 1st of each year. A c1Tv OF WPALO ALTO 3 Utilities Wildfire Mitigation Plan Update Objective Review the plan and determine if there are any changes or updates. Collaboration Prepared with assistance and input from Fire, Urban Forestry, Open Space, Office of Emergency Services 4- A c1Tv OF WPALO ALTO 4 Utilities Wildfire Mitigation Plan Updates Rebuild of overhead lines in the Foothills Staff recommended and is proceeding with an alternative solution to design in- house underground conversion project and contract as needed for construction, with an anticipated completion target of summer 2025. A c1Tv OF WPALO ALTO 5 Discussion End of Presentation Questions? A c1Tv OF WPALO ALTO Utilities Wildfire Mitigation Plan April 27, 2021 Attachment B CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 1 of 22 April 27, 2021 Table of Contents Purpose ................................................................................................................................... 3 Wildfire Risk Factors ............................................................................................................... 3 Compliance ............................................................................................................................. 4 Objectives ............................................................................................................................... 5 Minimizing Sources of Ignition ....................................................................................... 5 Resiliency of the Electric Grid ........................................................................................ 5 Minimizing Unnecessary or Ineffective Actions ............................................................. 5 Definitions .............................................................................................................................. 6 Roles and Responsibilities - City of Palo Alto Departments ................................................... 7 Utilities Department....................................................................................................... 7 Urban Forestry Division of the Public Works Department ............................................ 8 Fire Department ............................................................................................................. 8 Open Space and Parks Division of the Community Services Department ..................... 8 Office of Emergency Services ......................................................................................... 9 Completed Tasks .................................................................................................................... 9 City of Palo Alto Foothills Fire Management Plan ......................................................... 9 High Fire Threat Area Identification ............................................................................. 10 Public Utility Code 8387 (SB 1028) ............................................................................... 10 Ongoing Fire Prevention Activities ....................................................................................... 11 Vegetation Management ............................................................................................. 11 Electric System Inspection ........................................................................................... 12 Electric System Maintenance ....................................................................................... 12 Training......................................................................................................................... 13 Electric System Design/Operation ............................................................................... 13 Proposed Activities to Reduce Risk or Improve Response ................................................... 15 CPAU – Electric ............................................................................................................. 15 CPAU – Fiber ................................................................................................................. 16 CPAU – Water ............................................................................................................... 16 URBAN FORESTRY ........................................................................................................ 16 FIRE ............................................................................................................................... 17 • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 2 of 22 April 27, 2021 OPEN SPACE ................................................................................................................. 17 OES ............................................................................................................................... 18 Response to Wildfire Incident .............................................................................................. 18 FIRE ............................................................................................................................... 18 OPEN SPACE ................................................................................................................. 19 Communication ............................................................................................................ 19 Emergency Vehicle access ............................................................................................ 19 Resident Evacuation routes ......................................................................................... 19 Mutual Aid .................................................................................................................... 19 CPAU ............................................................................................................................. 19 Community Outreach ........................................................................................................... 20 About Wildfire Mitigation Plan .................................................................................... 20 Prior to proactive deenergization ................................................................................ 20 Prior to restoring power............................................................................................... 20 During a fire .................................................................................................................. 20 Mitigation Plan Review and Assessment Process ................................................................ 21 METRIC 1: Outages on the Overhead Electric System in the High Fire Threat Area .. 21 METRIC 2: Fire Ignitions ............................................................................................... 21 Revision and improvement implementation process .................................................. 21 Auditing ................................................................................................................................ 22 Attachments ......................................................................................................................... 22 APPENDIX A: City of Palo Alto Foothills Fire Management Plan APPENDIX B: Map of CPUC High Fire Threat areas in California APPENDIX C: Map of CPUC High Fire Threat area in Palo Alto APPENDIX D: Utilities Department Wildfire Mitigation Plan Roles and Responsibilities APPENDIX E: Summary of requirements of SB 901 APPENDIX F: Status of Proposed Activities to Reduce Risk of Wildfire APPENDIX G: DRAFT PSPS Policy and Process • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 3 of 22 April 27, 2021 PURPOSE Devastating wildfires throughout the State of California have prompted electric utilities throughout the state to identify areas within their jurisdiction that are susceptible to power- line ignited wildfires and to take steps to prevent their occurrence. This plan outlines the processes and activities undertaken by the City of Palo Alto ’s Utilities Department (CPAU) to mitigate the threat of wildfires associated with overhead electric lines and associated equipment owned and operated by CPAU. WILDFIRE RISK FACTORS Located 35 miles south of San Francisco and 14 miles north of San Jose, Palo Alto is a community of approximately 67,082 residents. Part of the San Francisco Metropolitan Bay Area Palo Alto is located within Santa Clara County and borders San Mateo County. The City's boundaries extend from San Francisco Bay on the east to the Skyline Ridge of the coastal Santa Cruz mountains on the west, with Menlo Park to the north and Mountain View to the south. The City encompasses an area of approximately 26 square miles, of which one- third is open space (a majority being in the western foothills of the Santa Cruz mountains). The city is predominantly a flat urban setting with treelined streets transitioning into the sparsely populated and open space areas of the western foothills. CPAU manages the 60kV subtransmission, 12kV and 4kV primary, and secondary electric distribution systems serving customers within the city limits. There are approximately 304 miles of primary distribution line in the city, of which 6% is in the western foothills area. Of the lines in the foothills, 56% are overhead bare conductors attached to insulators on wood poles. The remaining 44% is underground. Palo Alto has long been a leader in addressing issues that are tied to climate change. Starting with the Sustainability Policy in 2000, to the Climate Protection Plan in 2007, and most recently adopting the Sustainability/Climate Action Plan in 2016. Palo Alto understands the wildfires occurring throughout California may well be a new norm and we must take a proactive approach to prevent this from happening in Palo Alto. In 2011 CPAU hired a Consultant to perform a Hazard Risk Assessment to assess natural and man-made intentional hazard risks associated with the City of Palo Alto’s Utilities Department’s (CPAU’s) electric, gas, water, wastewater and fiber utilities as a combined entity. The primary purpose of the assessment was to provide information on potential risk exposure and the financial responsibility for losses that could result from property damage, bodily injury and/or death, and interruption of business. • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 4 of 22 April 27, 2021 The evaluation was based on 14 different hazard types (9 natural, 5 man-made) which included wildfire in the Foothills area due to the impact of wind on electric facilities. Of all the hazards evaluated, wildfire due to wind in the foothills posed the highest financial risk. Staff is in the process of negotiating a contract with a consultant to conduct a review and update the Risk Assessment specifically for the impact of wildfire in the foothills attributed to the electric system. Within CPAU’s service territory and the surrounding areas, the primary risk drivers for wildfire are the following: • Vegetation type; • Vegetation Density; • Weather; • High winds; • Terrain; • Changing Weather Patterns (Climate Change) • Extended drought; • Electric system maintenance and construction practices and methods • Electric system operating practices • Vegetation management practices COMPLIANCE This plan is prepared in compliance with Senate Bill (SB) 901, which amended Public Utilities Code Section 8387 by establishing several new policies and programs to help address the increased risk of wildfires across the state. The bill further directed California’s electric utilities to develop wildfire mitigation plans regarding power lines and equipment. Public electric Utilities such as Palo Alto must annually prepare a wildfire mitigation plan; receive an independent review to assess compliance, and ensure it complies with all applicable rules, regulations, and standards; and present it to their governing body at a noticed public meeting for comment. This plan applies to areas identified as a High Fire Threat in the California Public Utilities Commission (CPUC) State Firemap. As of 2019, the High Fire Threat Area in Palo Alto is all areas with the city limits west of Highway 280 (Foothills Area). Adjoining areas in other cities and jurisdictions are included in PG&E’s Wildfire Mitigation Plan. This plan also touches on several areas of the CPAU Strategic Plan by “identifying high priority issues that interfere with emergency services and recovery times and develop s plans • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 5 of 22 April 27, 2021 to improve resiliency, engage stakeholders and strengthen collaboration to achieve a shared objective, and enhance planned maintenance programs with clearly defined plans.”1 OBJECTIVES The overarching objective of the work instituted by CPAU in this plan is to eliminate electrical faults on the overhead electrical system in the High Fire Threat Area in Palo Alto, thereby eliminating power-line ignited wildfires and the ensuing risk to life and property. But this is a stretch goal that cannot be 100% guaranteed through changes to the electric system as outside forces can impact even the most robust construction. Even if all electric facilities were underground, there still exists the possibility, though at much lower probability, that a fault on the underground electric system could be a source of ignition of a wildfire. Minimizing Sources of Ignition The primary goal of this Wildfire Mitigation Plan is to minimize the probability that CPAU’s distribution system may be an original or contributing source for the i gnition of a fire. CPAU continues to evaluate the prudent and cost-effective improvements to its physical assets, operations, and training that can help to meet this objective and has implemented, or plans to implement, those changes consistent with this evaluation. These improvements include: changes to construction practices; increased inspection and maintenance; new and revised operating practices during periods of high fire threat; and increase in staff awareness. Resiliency of the Electric Grid The secondary goal of this Wildfire Mitigation Plan is to improve the resiliency of the electric grid. As part of the development of this plan, CPAU assesses new industry practices and technologies that will reduce the likelihood of a disruption in service, minimize the impact to customers, and improve the time of service restoration should there be a wildfire that impacts the electric system. Minimizing Unnecessary or Ineffective Actions The final goal for this Wildfire Mitigation Plan is to measure the effectiveness of specific wildfire mitigation strategies. Where a particular action, program, or protocol is determined to be unnecessary or ineffective, CPAU will determine which modification or replacement is required, or what new actions should be implemented to improve the plan. This plan will also help determine if more cost-effective measures would produce the same or better results. 1 2018 City of Palo Alto Utilities Strategic Plan – Priority 4, Strategy 5, Action4. • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 6 of 22 April 27, 2021 DEFINITIONS Deenergization – to shut off electrical power. This can be either planned (intentional act by Utilities staff) or unplanned (a short circuit causes a protective device, e.g. circuit breaker, to open causing an outage). Fault – refers to short circuits on an electric system. Examples include a bird or tree making contact between wires, a piece of equipment failing, or wires coming together because of severe wind or car pole accident. Fuses – equipment used to isolate faults on the electric system. This is basically a piece of wire that melts and breaks an electric circuit if the current exceeds a safe level. High Fire Threat Area – areas that are at an elevated or extreme risk of power line ignited wildfire as identified during the CPUC State Firemap development process. PSPS – Public Safety Power Shutoff Public Safety Power Shutoff – a proactive deenergization of the electric system by the utility during periods of high fire threat to prevent power-line ignited wildfires. Recloser – circuit breakers on the distribution system that will sense the occurrence of a short circuit and automatically open, shutting off power. They can be programmed to automatically reclose, to restore power after opening or can be remotely or manually reclosed. Reclose – the action of closing a device after it has automatically opened due to a short circuit on the electrical system. Some devices, such as Reclosers and Substation Circuit Breakers, can be programmed to automatically reclose. SCADA – “Supervisory Control and Data Acquisition”, is the system used by CPAU to remotely monitor the status and operate equipment on the electric system. Tier level – the CPUC State Firemap assigns Tier levels to all areas of California based on their risk of wildfires. Tier 1: Moderate Risk – any area not designated Tier 2 or 3 Tier 2: Elevated risk – A greater likelihood of utility-associated wildfire that would impact people/property; and where enhanced utility regulations could be expected to reduce utility-fire risk • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 7 of 22 April 27, 2021 Tier 3: Extreme risk – The highest likelihood of utility-associated wildfire that would impact people/property; and where the most restrictive utility regulations could be necessary to reduce utility-fire risk. Wildfire – a sweeping and destructive conflagration {fire} especially in a wilderness or a rural area.2 ROLES AND RESPONSIBILITIES - CITY OF PALO ALTO DEPARTMENTS CPAU will work with other Departments of the city to mitigate the threat of wildfires that could impact the city and residents. These departments work individually and together to: • Ensure the electric system operates in a manner that will minimize potential wildfire risks. • Take all reasonable and practicable actions to minimize the risk of a catastrophic wildfire caused by CPAU electric facilities. • Coordinate with federal, state, and local fire management personnel as necessary or appropriate to implement CPAU’s Wildfire Mitigation Plan. • Immediately report fires, pursuant to existing department practices and the requirements of this Wildfire Mitigation Plan. • Take corrective action when the staff witnesses or is notified that fire protection measures have not been properly installed or maintained. • Comply with relevant federal, state, and industry standard requirements, including the industry standards established by the CPUC. • Collect and maintain wildfire data necessary for the implementation of this Wildfire Mitigation Plan. • Provide regular training programs for all employees having obligations for implementation of this Wildfire Mitigation Plan. Utilities Department The City of Palo Alto is the only municipality in California that operates a full suite of City - owned utility services (electric, water, natural gas, wastewater, fiber optic). CPAU manages these services and has been providing quality service to the citiz ens and businesses of Palo Alto since 1896. CPAU is responsible for the design, construction, maintenance, and operation of the utility electric and water systems in the City of Palo Alto and is the lead on all utility system mitigation activities. Various personnel within Utilities are involved with creating and 2 Definition cited from Merriam - Webster Dictionary • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 8 of 22 April 27, 2021 implementing the tasks in this plan. Detailed roles and responsibilities for Utilities Department staff are shown in Appendix D. The Electric Engineering and Electric Operations Managers are responsible for ensuring that this mitigation plan is prepared, completed, and updated as planned. Electric Engineering staff are responsible for activities related to design, policies and procedures, and contractor selection. Electric Operations staff are responsible for operating, construction, inspection , and maintenance activities, and overseeing the completion of field mitigation activities by other city departments. Urban Forestry Division of the Public Works Department The Urban Forestry Division (URBAN FORESTRY) maintains nearly 66,000 trees in Palo Alto’s urban and rural t areas. The urban forest consists of all trees in the City, public and private street trees, park trees, forested park-lands and trees on private property. City Staff, in-house tree crews, and contractors plant, prune, maintain, and remove public trees; clear vegetation from utility lines; issue tree permits and monitor tree protection for development and capital improvement projects; field resident questions and requests; and attend to tree emergencies. Fire Department The Palo Alto Fire Department (FIRE) strives to apply the best practices in fire, rescue and emergency services, and uses innovative approaches to protect the citizens and businesses in Palo Alto. They are committed to reducing the community's risk from fire and other emergencies and focus a great deal of resources to identify, mitigate and prevent hazards that could cause fires or other emergencies. FIRE is a first responder to any fire incidence and a key resource in helping to assess hazards for proactive mitigation and prepare reaction plans prior to a fire occurring. Open Space and Parks Division of the Community Services Department Open Space and Parks (OPEN SPACE) is responsible for the maintenance of 174 developed acres of urban park lands and 2000 acres of “rural” open space areas in the western foothills of Palo Alto. A portion of the High Fire Threat area in Palo Alto includes two open space preserves. • Foothills Park is a 1,400-acres preserve with rugged chaparral, woodland, fields, streams, a lake, and 15 miles of trails. It is bounded by Portola Valley, Los Altos Hills, Pearson-Arastradero Preserve and Los Trancos Open Space Preserve in Portola Valley. • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 9 of 22 April 27, 2021 • Pearson Arastradero Preserve is 622 acres of grassland, riparian and oak woodland habitat. It has nine miles of trails and two small lakes. Hikers, equestrians and cyclists use the preserve. It is bounded by Stanford, Los Altos Hills, Portola Valley, and Foothills Park. Rangers and other division staff maintain and operate facilities in Foothills Park and provide an onsite presence to identify and alert city perso nnel to issues that affect the park or surrounding areas. Office of Emergency Services The Office of Emergency Services’ (OES) mission is to prevent, prepare for, mitigate, respond to, and recover from all hazards. They develop, maintain, and sustain a citywide, comprehensive, all-hazard, risk-based emergency management program that engages the whole community. OES manages and coordinates the overall emergency response and recovery activities and is key to ensuring all necessary coordination and communication with the community, governmental agencies, or emergency responders is accomplished in a systematic and complete manner. COMPLETED TASKS City of Palo Alto Foothills Fire Management Plan The Foothills Fire Management Plan3 addresses a broad range of integrated activities and planning documents to address and mitigate the impacts of fire hazards in the Foothills area. The Fire Management Plan Update addresses the following key items: • Fire Hazard Assessment • Regional Evacuation Routes • Wildland Fire Management Recommendations and Mitigations • Recommendations for specific high-threat areas • Management Plan • Review of Municipal Ordinances • Staffing of the fire station closest to the Foothills • Implementation Plan and Identification of Potential Funding 3 Available at https://www.cityofpaloalto.org/civicax/filebank/documents/61522 and last updated in January 2017 • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 10 of 22 April 27, 2021 The plan was developed by the City of Palo Alto’s Urban Forestry, Fire, and Open Space staff in collaboration with, or with input from, various stakeholders including: Arrillaga Property: 500 Los Trancos Road CAL FIRE Friends of Foothills Park Grassroots Ecology (formerly Acterra) Los Altos Hills Fire District Los Altos Hills: ARES/RACES Los Trancos Water District Los Trancos Woods Neighborhood Menlo Park Fire District Midpeninsula Regional Open Space District PA Protect Our Open Space Palo Alto Hills Neighborhood Association Pony Tracks Ranch Portola Pasture Stables San Mateo County FireSafe Council San Mateo County Sheriff Santa Clara County Fire Department South Skyline Association Stanford Community Residential Leaseholders (SCRL) Stanford University Town of Los Altos Hills Vista Verde Community Association Woodside Fire Protection District High Fire Threat Area Identification In 2012, the CPUC ordered the development of a statewide map (Fire-Threat Map) designed specifically for the purpose of identifying areas where there is an increased risk for utility associated wildfires (Attachment B). Publicly Owned Utilities, though not under the jurisdiction of the CPUC, participated in development of the Fire-Threat Map. CPAU took the responsibility of acting as the “territory lead” and performed the assessment of the geographical areas under their responsibility. CPAU worked with local fire departments, the City’s Urban Forestry staff, communications companies, and the adjoining electric utility, and with the assistance of a fire science consultant determined the areas within the City’s jurisdiction that are at an elevated or extreme risk of power line ignited wildfire. The High Fire Threat Area in Palo Alto was identified as all areas within the city limits west of Highway 280 (see Attachment C) and is rated as Tier 2 – Elevated Risk, no other areas in Palo Alto were identified for inclusion in the Fire Threat Map. High Fire Threat areas require more stringent construction, vegetation management, and inspection requirements as listed in CPUC General Order 95 – Rules for Overhead Line Construction (“GO 95”). Though not governed by these rules, CPAU follows them as a minimum industry safety standard for construction of its electric lines. Public Utility Code 8387 (SB 1028) SB 1028 mandated that the governing boards of local publicly owned electric utilities determine wildfires risk in certain geographic areas. Specifically, governing bodies are to determine whether any portion of an area within its jurisdiction has a “significant risk of catastrophic wildfire” resulting from the utility’s electrical lines and equipment. • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 11 of 22 April 27, 2021 On August 20, 2018, the Palo Alto City Council determined that the area within City limits west of Highway 280 (Foothills area) is at significant risk of catastrophic wildfire resulting from electric lines. They also approved mitigation measures that Public Works and Utilities staff will implement to reduce the risk of wildfire. ONGOING FIRE PREVENTION ACTIVITIES Vegetation Management Responsibility: Electric Operations Manager will coordinate activities with Manager Urban Forestry CPAU, through the efforts of Urban Forestry, meets or exceeds the minimum industry standard vegetation management practices. Specifically, CPAU meets the standards articulated in: (1) Public Resources Code section 4292; (2) Public Resources Code section 4293; (3) GO 95 Rule 35; and (4) the GO 95 Appendix E Guidelines to Rule 35 (See table below). These standards require significantly increased clearances in the High Fire Threat Areas. The rules establish a minimum clearance and a guideline for clearance distance at the time of trimming requirement between conductors and trees. Clearance distance at the time of trimming are discretionary guidelines. Urban Forestry will use specific knowledge of growing conditions and tree species to determine the appropriate clearance distance. Urban Forestry will also clear ground vegetation around the base of a pole to minimize the chance of fires. Within the High Fire Threat Area, Urban Forestry performs an evaluation of every tree that has the potential to have branches strike, or the entire tree fall into, the overhead facilities. Urban Forestry performs more frequent and detailed inspections of these trees, and in severe cases will work with the land owner to remove the tree. Table 1: Minimum allowable clearances of overhead primary (12,000 Volt) electric lines from vegetation, stipulated in CPUC General Order 95. General Order 95: Rule 35 Appendix E Type of Clearance Minimum Clearance Clearance at time of trim (allows for tree growth between tree trimming) Radial clearance of bare line conductors from tree branches or foliage 1.5 feet 4 feet Radial clearance of bare line conductors from vegetation in the Fire-Threat District 4 feet 12 feet • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 12 of 22 April 27, 2021 Electric System Inspection Responsibility: Electric Operations Manager CPAU meets or exceeds the minimum inspection requirements provided in CPUC GO 165 and CPUC GO 95, Rule 18. Pursuant to these rules, CPAU inspects electric facilities in the High Fire Threat Area more frequently that the other areas of its service territory. Additionally, CPAU staff uses their knowledge of the specific environmental and geographical conditions to determine when areas outside of the High Fire Threat Area require more frequent inspections. CPAU also uses infrared scanning of our facilities to detect problems before they reach a point of failure. If staff discovers a facility in need of repair that is owned by an entity other than CPAU, we issue a notice to repair to the facility owner and works to ensure that necessary repairs are completed promptly. CPAU works to ensure that all inspections within the High Fire Threat Area are completed before the beginning of the historic fire season, typically June 1st. CPAU monitors drought conditions and other relevant factors throughout the year to determine if insp ections should be completed on a shorter timeframe. Future overhead electric line inspections in the High Fire Threat Area will be coordinated between CPAU, FIRE, URBAN FORESTRY, OPEN SPACE, and OES staff, as required, to ensure all needs are met. Electric System Maintenance Responsibility: Electric Operations Manager Maintenance work is identified through several methods including: • Visual Inspection by CPAU Staff – staff performs an annual visual inspection of all overhead facilities in the High Fire Threat Area. • Wood pole inspection and treatment program – staff contracts out to perform inspection and treatment of all wood poles in the city on a 10-year cycle. Poles identified for replacement are done so on a priority basis depending on level of deterioration. • Notification by other City staff or outside sources – staff will act as necessary on the identification of issues by CPAU staff, other City staff, outside utility sources (PG&E, AT&T, etc.) or citizens. Work is scheduled and accomplished as needed by CPAU or contract staff based on priorities set by CPAU. • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 13 of 22 April 27, 2021 Training Responsibility: Electric Engineering and Operations Managers Staff within CPAU’s Engineering and Operations Divisions have received an overview of the development of measures to reduce the risk of power line-ignited fires. As of this first iteration of the Wildfire Mitigation plan, CPAU is developing related processes and procedures as applicable. Training will commence once these are finalized and will include general readiness requirements and guidance from FIRE. CPAU is reviewing and updating as needed the procedures to prepare for and respond to load shedding requirements due to influences outside of the City, i.e. high voltage transmission line outages. Load shedding may be required if the impact of deenergization of a transmission line impacts the stability of the transmission network. The determination is made by the California Independent System Operator (CAISO) who makes the call to reduce electrical demand on the system. Depending on the amount of decrease required, load shedding could result in rolling blackouts for Palo Alto customers. Electric System Design/Operation Responsibility: Electric Engineering and Operations Managers • Reclosers – there are two reclosers on the electric distribution line in the Foothills Area. Both devices will automatically open when they sense the large amount of current th at flows when a fault (short circuit) occurs on the line. Both can also automatically close (i.e. reclose) after a preset time delay. To minimize the risk of causing a fire, th is reclosing capability is permanently disabled on both reclosers and the circuit breaker at the substation. Before the recloser is manually/remotely closed, CPAU staff will patrol the lines to identify the cause, repair the line as needed, or ensure that the cause of the outage is no longer present. Disabling the reclosing capability could result in longer duration outages due to the time required for line patrolling and manual closing of the equipment to restore power. • Fuses – the fuses used in the High Fire Threat Area are “non-expulsion” type, meaning when they blow due to a fault, any hot metal of the fuse is contained within the fuse holder and does not fall to the ground where it could ignite dry vegetation. • Protective device coordination – Staff has performed protective device coordination studies to ensure that a fault on the line is isolated as quickly as possible and the impact is limited to the smallest area possible. This also aids during troubleshooting to identify the location and cause of the outage after it has occurred. The fuses have been changed on the distribution system based on these studies. • Staff Notification – staff will be notified when pending high fire threat conditions are identified. Deenergization protocols, in development, will be implemented. • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 14 of 22 April 27, 2021 • Deenergization – Often referred to as a Public Safety Power Shutoff (PSPS) CPAU has the authority to preemptively shut off power due to high fire-threat conditions; however, this option will only be used in extraordinary circumstances. CPAU considers a PSPS as a last resort to eliminate the possibility of a wildfire caused by overhead electric equipment and is only expected to occur during extreme weather conditions. A PSPS will impact all electrical customers in the High Fire Threat Area for the duration of the extreme weather conditions and the time afterward to inspect all facilities and make repairs as necessary. Because of this CPAU has drafted the PSPS policy and procedures on identification of the fire threat condition that will dictate deenergization , the authorization process to implement, a pre/post communication process to notify customers and outside entities, and post inspection/restoration. PSPS communication is coordinated with OES staff. The decision to institute a PSPS includes working with CPAU’s Water utility staff to determine if pumping water up to the reservoirs located in the Foothills Area in advance of shutting off power should occur to ensure there is sufficient water and water pressure for firefighting activities, should they be necessary. CPAU, in conjunction with City Staff, will make a case-by-case decision to shut off power based on the following considerations: o Red Flag Warnings issued by the National Weather Service for fire weather zones that include the Foothills Area; o City staff assessments of local conditions, including wind speed (sustained and gust), humidity and temperature, fuel moisture, fuel loading an d data from weather stations; o Real-time information from staff located in areas identified as at risk of being subject to extreme weather conditions; o Input from City fire experts and vegetation experts; o Input from local and state fire authorities regarding the potential consequences of wildfires in select locations; o Awareness of mandatory or voluntary evacuation orders in place; o Expected impact of de-energizing circuits on essential services; o On-going fire activity throughout the City’s territory and California; o Notifications to local governments and public officials; and o Safety and potential impacts to communities and customers The plan to deenergize includes procedures for communications with customers, residents, and outside agencies, and power restoration after the threat passes. The lines must be patrolled and inspected to ensure there is no damage before restoring power. Approval of the CPAU PSPS policy and procedure should be completed by January 2020. A draft of the PSPS policy is included in Appendix G. • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 15 of 22 April 27, 2021 During the October 2019 Red Flag Warnings for the Santa Cruz Mountains, CPAU staff utilized a PG&E website of weather stations4 to monitor weather conditions in the Palo Alto High Fire Threat Area. CPAU is installing a weather station at one of our water reservoirs in the High Fire Threat Area. This should be completed by the end or 2019. PROPOSED ACTIVITIES TO REDUCE RISK OR IMPROVE RESPONSE CPAU – Electric Responsibility: Electric Engineering and Operations Managers • Electric Service Restoration after an Outage – CPAU is assessing current practices and procedures for troubleshooting outages to identify the cause and restore power to identify any process improvements that may be necessary, or equipment that could be installed, that would decrease the restoration time without sacrificing safety. All deenergized lines will undergo a full visual inspection prior to reenergization (i.e. restoring power to customers). • Refine Construction Practices – CPAU staff is evaluating the current construction practices for overhead distribution lines in the High Fire Threat Areas and will identify and implement practices that could reduce the likelihood of utility line caused fires and outages, and increase the resiliency of the line should one occur. Staff will implement changes brought about by experience and industry best practices . This could include alternative pole/crossarm types (steel/composite/fiberglass vs wood) that will withstand fire and improve resiliency; insulated overhead wire (tree wire); different line construction techniques (triangular/vertical vs crossarm); raptor (bird) protection at electric equipment; increased pole loading safety factors; and replacement of protective devices (line breaker vs fuses) for improved response time. Staff will also review possible improvements to the fiber optic cables used for the communication needs of utility and city facilities. • Rebuild/reroute Overhead Line – based on the findings of new construction practices, CPAU staff will determine the cost and feasibility of rebuilding the approximately 11 miles of overhead line, as necessary. This could include rerouting to avoid vegetation and improve access for inspection and maintenance. • Convert overhead lines to underground – where possible the feasibility of converting the overhead lines to underground will be assessed. Because of the terrain, there will be areas where this will not be possible. • SCADA switch to facilitate line deenergization – to facilitate the ability to quickly shut off power on the line serving the Palo Alto foothills, CPAU staff will install a remotely operable switch at a select location. This switch will give Electric Dispat ch Operators at 4 https://www.pge.com/en_US/safety/emergency-preparedness/natural-disaster/wildfires/psps-weather- map.page , Page Mill Road location • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 16 of 22 April 27, 2021 the Utility Control Center the capability to deenergize the line immediately, when a decision is made. • Drone inspection of utility lines and vegetation – because of the inaccessibility of some portions of the overhead lines, staff may seek the capability to inspect the lines, pole top equipment, poles, and vegetation clearance using aerial drones. This will give close-up visual access to many things that can only be viewed from the ground. Past investigation into this technology several years ago showed that it was not capable of providing the photo/video resolution necessary to adequately and reliably analyze the condition of infrastructure. Newer technologies may prove to be more capable for this task. The decision to move forward with this activity will depend on progress made with rebuilding/changing the existing overhead lines. • Additional activities will/could be identified by CPAU staff during completion of the work identified in this plan or through the annual overhead line inspection process. These will be added and tracked on the status of proposed activities sheet in Appendix F. CPAU – Fiber Responsibility: Electric Engineering and Operations Managers • Communications System Improvements – there is a need to improve communications for personnel in the foothills. There are spots where radio communications are spotty or non-existent. CPAU is working with OES to facilitate improvements by installing additional fiber optic cables to a proposed location for a new antenna. CPAU – Water Responsibility: WGW Engineering and Operations Managers • Proactive pumping of water up to reservoirs – part of the procedures for identifying fire threat conditions and the decision to deenergize power lines will include working with CPAU’s Water utility staff to determine if pumping water up to the reservoirs located in the Foothills Area in advance of shutting off power should occur to ensure there is sufficient water and water pressure for firefighting activities, should they be necessary. • Emergency generators – CPAU will assess the need for emergency diesel backup generators at key utilities facilities, if needed. URBAN FORESTRY Responsibility: Electric Operations Manager will coordinate activities with Urban Forestry • Urban Forestry performs an evaluation of every tree that has the potential to strike overhead facilities it if were to fall. Urban Forestry performs more frequent or detailed inspections of any trees considered high risk or species that exhibit rapid regrowth, and in severe cases will work with the land owner to remove the tree. • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 17 of 22 April 27, 2021 • Additional activities are documented in the City of Palo Alto Foothills Fire Management Plan – 2016 Update FIRE Responsibility: Electric Operations Manager will coordinate activities with FIRE • Site Visits – FIRE will perform site inspections on private property to assess defensible space around homes, home construction, and access for emergency responders necessary to prevent damage due to wildfires. • Controlled Burns – FIRE will assess the need, seek approval for, and carry out any controlled burns in the Foothills Area during the cooler months to reduce fuel buildup and decrease the likelihood of serious wildfires. This will be coordinated with the partner agencies and groups. • Fire Threat condition monitoring – FIRE will work with CPAU on development of the process to monitor current and forecasted weather data from a variety of sources including: o United States National Weather Service o United States Forest Service Wildland Fire Assessment System o National Fire Danger Rating System o National Interagency Fire Center – Predictive Services for Northern and Southern California. o Fire warnings provided by OES One of four operating conditions will be determined based on the relevant weather data and knowledge of local conditions: 1. Normal: During normal conditions, no changes are made to operations or work policy. 2. Elevated: During elevated fire-risk conditions. 3. Extreme: During extreme fire-risk conditions. 4. Red Flag: If the National Weather Service declares a Red Flag Warning for any portion of CPAU’s service territory. The decision to deenergize electric lines in the Foothills Area will be made jointly and determined during this evaluation. • Additional activities are documented in the City of Palo Alto Foothills Fire Management Plan – 2016 Update OPEN SPACE Responsibility: Electric Operations Manager will coordinate activities with OPEN SPACE • Fuel Reduction – Per the Foothills Fire Management Plan, overseeing the removal of built up and annual fuel from roadsides, structures inside preserves, high-use public areas, • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 18 of 22 April 27, 2021 evacuation routes, and fire breaks using contractors and park staff through mowing, sawing, and disk lines. • Patrol – Rangers actively monitor fire danger in type 6 patrol trucks. OPEN SPACE staff informs the public of high fire danger and enforces fire restrictions inside Foothills Park and Pearson Arastradero Preserve. OES Responsibility: Utilities Communications Manager will coordinate activities with OES Situational awareness. OES contributes to the daily monitoring of threats and hazards to the Palo Alto area of interest and shares relevant information within the local and regional community. This also includes introducing advanced technologies to increase our perspective of this hazard area. Community education and training. OES provides online content, hosts community education sessions, and supports neighborhood preparedness efforts. Emergency response planning – OES participates in regional planning efforts, continues to evolve existing plans and develop additional emergency related plans. Alerts and Warnings - OES has procedures for communication with residents during emergencies that are documented in the City Emergency Operations plan and are not included in this document. 5 RESPONSE TO WILDFIRE INCIDENT Responsibility: Response to a wildfire incident will guided by the City Emergency Operations plan FIRE FIRE takes the lead with suppression of any fires and will coordinate efforts with adjoining agencies and if necessary, request mutual aid assistance. They will also, based on their firefighting efforts, determine the evacuation routes for residents and anyone else caught in the area. Evacuation activities are carried out by the Palo Alto Police Department. 5 The City Emergency Operations Plan is on the City website at the following link: https://www.cityofpaloalto.org/civicax/filebank/documents/34121 . • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 19 of 22 April 27, 2021 OPEN SPACE Rangers will provide FIRE with an initial size up of a fire and under direction of FIRE do initial attack with type 6 patrol trucks until FIRE units arrive. Rangers will also initiate Open Space preserve evacuations and direct visitors to safety zones. Communication OES will assess the situation and take the lead in activating the Emergency Operations Center (EOC) as necessary, establishing communication with other city and county agencies, coordinate the communication between the EOC and city staff, and coordinate the process of timely release of information to the press and general public. OES has procedures documented in the City Emergency Operations plan and they are not included in this document. CPAU will use their own communication channels to coordinate deenergization and restoration efforts of facilities shared with PG&E and AT&T. Emergency Vehicle access Activities to maintain access to the Foothills area are documented in the City of Palo Alto Foothills Fire Management Plan – 2016 Update Resident Evacuation routes Activities to maintain evacuation routes from the Foothills area are documented in the City of Palo Alto Foothills Fire Management Plan – 2016 Update Mutual Aid CPAU – CPAU has mutual aid agreements with “California Utilities Emergency Association” and the “American Public Power Association”. Should there be a wildfire in the foothills, CPAU would call on outside assistance to rebuild the line, as necessary. As part of the review of construction practices and possible line rebuild, keeping the line intact and usable after a fire is a key criterion of any new construction. FIRE – FIRE has procedures for requesting mutual aid and these are not documented in this plan. OES – OES has procedures for requesting mutual aid and these are not documented in this plan. CPAU During a fire – As a “Disaster Service Worker”, utilities staff will assist other city emergency responders with any activities required of staff. This could include deenergization of electric • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 20 of 22 April 27, 2021 lines, clearing of debris, assistance with evacuation, ensuring availability of water, and communication with customers and other utilities (PG&E, AT&T, etc.). Utilities staff will standby for direction from FIRE, Police, and Office of Emergency Services direction. Electric Service Restoration after a wildfire or deenergization due to wildfire concerns – It may become necessary to deenergize all or portions of the utility electric lines in the foothills. Utilities Operations staff will deenergize electric lines as necessary for safety, fire prevention, and to facilitate firefighting efforts. Activities to restore power will be coordinated with FIRE and would not occur until deemed safe by FIRE. Before restoring power after a wildfire or proactive deenergization, Utilities staff will perform a full visual inspection of the overhead electric lines. Any damage or hazardous conditions will be repaired before the lines are reenergized. In general, the repairs will be identified, necessary repairs triaged; and then repairs made to restore power as soon as possible. Work will include coordination with PG&E as appropriate and with the Utilities Communication Manager for community outreach. COMMUNITY OUTREACH About Wildfire Mitigation Plan CPAU will present this Wildfire Mitigation Plan to Council in December 2019. Prior to proactive deenergization Notification of deenergization – FIRE, Police, Emergency Services, Water Utility, Telephone, Emergency Operations Center activation, Health Care facilities, and affected Customers CPAU communications staff will work with OES to develop communication protocol to ensure stakeholders, customers/residents, and critical first responders (health care facilities, communication companies, neighboring agencies, etc.) are notified of any impending Utility activities that will impact electric service in the foothills. Prior to restoring power CPAU communications staff will work with OES to provide timely updates on status and conditions related to the fire threat, power deenergization, line co nditions, and projections for power restoration. During a fire OES has procedures for communication with residents during emergencies that are documented in the City Emergency Operations plan and are not included in this document. • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 21 of 22 April 27, 2021 MITIGATION PLAN REVIEW AND ASSESSMENT PROCESS CPAU will use the following metrics to measure the performance of this Wildfire Mitigation Plan: METRIC 1: Outages on the Overhead Electric System in the High Fire Threat Area The implementation of activities identified in the Plan will minimize the probability of outages on the overhead electric system in the high fire threat area. Full implementation is necessary to facilitate the objective of zero faults on the overhead system. Utilities will continue to track outages in the high fire threat area and anticipates there will be a reduction over time as activities are completed. All outages in Palo Alto are reviewed. The cause of the outage, steps necessary to troubleshoot and restore service, and protective device operation are analyzed to determine if equipment operated as expected, if the cause could be related to a bigger issue, or if system improvements could be made to prevent or minimize the impact of the fault. System improvement projects are proposed and implemented based on these findings. Outages in the High Fire Threat Area will also be evaluated to determine if activities implemented in the Wildfire Mitigation Plan : 1) should have prevented the outage, 2) were inadequate to prevent the outage, 3) could be improved, or 4) would not have been able to prevent the outage. Based on these findings, revisions to the plan will be made as necessary METRIC 2: Fire Ignitions For purposes of this metric, a fire ignition is defined as follows: • A CPAU facility was associated with the fire; • The fire was self-propagating and of a material other than electrical and/or communication infrastructure; • The resulting fire traveled greater than one linear meter from the ignition point; and • CPAU has knowledge that the fire occurred. In future Wildfire Mitigation Plans, CPAU will provide the number of fires that occurred that were less than 10 acres in size. Any fires greater than 10 acres will be individually described. Revision and improvement implementation process Annually, CPAU will analyze the metrics and identify any deficiencies in the system operation/design or in this Mitigation Plan. This analysis along with proposed improvements will be presented to Council as part of the annual update. • CITY OF PALO ALTO UTILITIES WILDFIRE MITIGATION PLAN P a g e | 22 of 22 April 27, 2021 The Utilities Electric Engineering Manager is responsible for plan’s implementation, status updates, and that the metrics are tracked to achieve the plan objectives. The manager, or their designee, will monitor completion of the mitigation plan activities and schedule meetings twice a year (4 months prior and just after the start of the typical fire season) to discuss preparation and planning of current and future work. Each Department or Division is responsible for completing activities within their area of responsibilit y; and identifying and proposing changes or improvements to the plan. Any new items for completion or suggestions for improvement to the plan will be discussed and incorporated into the plan as necessary. AUDITING This Wildfire Mitigation Plan is subject to review by Council. Additionally, a qualified independent evaluator is required to review the initial plan to ensure it complies with the requirements of SB 901 and the actions contained sufficiently address the risk posed by utility lines. ATTACHMENTS Appendix A: City of Palo Alto Foothills Fire Management Plan Appendix B: Map of CPUC High Fire Threat areas in California Appendix C: Map of CPUC High Fire Threat area in Palo Alto Appendix D: Utilities Wildfire Mitigation Plan Roles and Responsibilities Org Chart Appendix E: Summary of requirements of SB 901 Appendix F: Status of Proposed Activities to Reduce Risk Appendix G: DRAFT PSPS Policy and Process • CITY OF PALO ALTO UTILITIES APPENDIX A APPENDIX A: CITY OF PALO ALTO FOOTHILLS FIRE MANAGEMENT PLAN 2009 – Cover and Executive Summary 2012 Update – Cover and Executive Summary • CITY OF PALO ALTO UTILITIES APPENDIX A • CITY OF PALO ALTO UTILITIES Palo Alto Foothills Fire Management Plan Update WILDLAND FIRE RISK ASSESSMENT AND MITIGATION PROGRAM Submitted to: City of Palo AJto Attention : Kelly Moral"iu 250 Hamilton Avenue Palo Alto, CA 94301 Submitted by: Wil,lland Resource Management, htc. Wi ldl and Resource Management 134 Journeys End A lamo, CA 94507 January 15, 2009 APPENDIX A • CITY OF PALO ALTO UTILITIES City of Palo Alto Foothills F ire M anagement Plan Update TABLE OF CONTENTS Part A -FIRE HAZARD ASSESSMENT AND FUEL MANAGEMENT PLAN/ PROJECTS Executive Summary 2 Introduction 2 .I Goals and Obj ectives 2 .2 Planning Hi story .............................. 8 ............................ 12 ........................... 13 ............................ 14 2 .3 Scop e of the Plan ......................................................................................................................................................... 17 2 .4 Pl anning Process .......................................................................................................................................................... 17 3 Existing Conditions ................................................................................................................................................................ 19 3. I Fire Hazard 3 .1.1 Vegetation and Fire Fuels 3 .1.2 Fire Behavior 3 .1.2 .1 Fire Behavior Modeling ............................ 19 ............ 19 ........................... 21 ............................ 2 1 3.1.2 .2 Spa ti al lnput Files ................................................................................................................................... 21 3.1.2 .3 U ser-Defined Inputs ............................................................................................................................... 22 3.1.2 .4 FlarnMap Results .................................................................................................................................... 23 3 .2 Fire Suppression Ca pabiliti es 3.3 Access 3.4 Sensitive Res ourc es 3 .4 .1 Social and Cultural Features ............................ 27 ....... 28 ....... 28 ............................ 31 3 .4.2 Environmental Features .................................................................................................................................... 31 3 .4 .2 .1 Species and Wildli fe ............................................................................................................................... 32 3.4.2 .2 Soils and Geology .................................................................................................................................. 37 4 Fuel Management in City Parks 4 . I Identi fying Potential Treatment Areas 4 .2 E stablishing Proj ect Obj ectives 4 .3 Current Fuel Management Prog ram ............................ 39 ............ 39 ....... 39 ............................ 4 1 4 .4 Proj ect Descri ption ....................................................................................................................................................... 46 4.4 .1 Scope of Recommended Fuel Management Proj ects ....................................................................................... 46 4.4.2 Proj ect Descri pti on Summary .......................................................................................................................... 46 4.4 .3 Proj ect Obj ectives 4.4.4 Priority 4.4 .5 Proj ect Locations 4.4 .6 Proj ect Dimensions and Post-Treatm ent Standards ............................ 46 ............................ 47 ....... 47 ............ 53 4.4.7 Roadside and Driveway Fuel Modificati on fo r Safe Access and Egress .......................................................... 54 4.4.7.1 Specifi c Goal of Acti on .......................................................................................................................... 54 4 .4 .7.2 Locati on and Description o f Proj ects ..................................................................................................... 54 4.4 .8 Fuel Mo dification for Firefi ghter Safety Proj ects .. 15 Ja nua ry 2009 2 APPENDIX A • CITY OF PALO ALTO UTILITIES City of Palo Alto Foothills Fire Management Plan Update 4.4.8.1 Specifi c Goal of Acti on 4.4.8.2 Location and Description of Projects 4.4 .9 Structure and Infrastructure Projects -Defen sibl e Space 4.4.9.1 Specifi c Goal of Acti on 4.4.9.2 Locati on and Description of Projects 4.4 . l O Ignition Prevention Fuel Management Proj ects 4.4.10.l Specific Goal of Acti on ............................ 57 ........... 57 ............................ 57 ............................ 57 ....... 58 ........................... 59 ............................ 59 4.4 .10.2 Location and Description of Projects ..................................................................................................... 59 4.4.11 Fuel Modification for Containment Ease ......................................................................................................... 59 4.4.11 .1 Specific Goal of Action .......................................................................................................................... 59 4.4.11.2 Location and Description of Projects 4.4 .12 Fuel Modification for Ecosystem Heal th 4.4.12.l Spec ific Goal of Action ............................ 60 ............ 62 ........................... 62 4.4.12.2 Location and Description of Projects ..................................................................................................... 62 4.4. I 3 Cooperative Fuel Management Proj ects for Offsite Fire Containment and Evacuation Ease .......................... 63 4.4 .13 .1 Specific Goal of Action .......................................................................................................................... 63 4.4.13.2 Location and Description of Projects ..................................................................................................... 63 5 Im plementation Plan 5 . I Implementation Strategies 5 .2 Priorities 5 .3 Fu el Management Project Costs ............................ 64 ....... 64 ....... 65 ............................ 66 5.3.1 Proj ect Cost Estimates ...................................................................................................................................... 67 5 .4 Funding Strategies to Support Fue l Management ......................................................................................................... 71 5.5 Grant Opportunities ...................................................................................................................................................... 72 6 Treatment Standards and Methods 6 .1 Treatment Standards for Vegetati on Types 6.1.1 Prescription for Grasslands 6.1.2 Prescription for North Coas tal Scrub and Chaparral ............................ 74 ............ 74 ....... 74 ............................ 74 6.1.3 Prescription for Oak Woodlands ...................................................................................................................... 76 6.1.4 Presc ription for Riparian Forest ....................................................................................................................... 76 6.1.5 Defensible Space Guide lines ............................................................................................................................ 77 6 .2 Description of Treatment Methods 6.2 .1 Summ ary 6.2 .2 Timing of Treatments 6.2 .3 Hand Labor ............................ 78 ............................ 78 ....... 78 ............ 79 6.2.4 Mechanica l Treatments .................................................................................................................................... 79 6.2.5 Grazing with Sheep and Goats ......................................................................................................................... 8 1 6.2.6 Broadcast Pre scribed Bums .............................................................................................................................. 8 1 6.2.7 Euc alyptns Tree Removal 15 January 2009 3 APPENDIX A • CITY OF PALO ALTO UTILITIES City of Palo Alto Foothills Fire Management Plan Update 6.2 .8 Herbi cide Appli cation to Control Invasive Plants 6 .3 Best Management Practices 6.3 .1 Hand Labor 6.3 .2 Mechanical Treatments 6.3.3 Grazing with Sh ee p and Goats 6.3 .4 Broadc ast Prescri be d Burns 6.3.5 Herbicide Application ............................ 83 ............ 84 ............................ 84 ............................ 85 ....... 86 ........................... 86 ............................ 87 PART 8 -POLICY REVIEW AND SUPPLEMENTAL RECOMMENDATIONS Evacuation and Refuge 1.1 Identific ati on and Notific ati on 1.2 Regional Cooperation 1.3 Temporary Refuge ............................ 89 ....... 89 ............................ 90 ............................ 90 2 Codes and Regulations ........................................................................................................................................................... 91 2 .1 Existing Codes and Ordinances .................................................................................................................................... 9 1 2.1.1 FireCode .......................................................................................................................................................... 9 1 2.1.2 Building Code 2.2 Recommendations 2 .3 Exterior Hazard Abatement 2.3 .1 For parcels of land one acr e or less maintain parcel in complete abatement ............................ 93 ............ 93 ........................... 95 ................................ 95 2.3.2 For parcels larg er than one acre in size ............................................................................................................ 96 3 Fire Protecti on -Station 8 ...................................................................................................................................................... 98 3 .1 Description ................................................................................................................................................................... 98 3 .2 Appraisal 3 .3 Recommendation 4 Trail Plan Update 4.1 Pearson-Arastradero Preserve Trails Management Plan (March 2001) ............................ 99 .......................... 100 .......................... 101 .......................... 101 4.1.1 Recommended Revisions ............................................................................................................................... 101 4.1.2 Existing Fire Miti gation and Fuel Management in th e Arastradero Trails Management Plan ........................ 103 4.1.3 Vegetation Manag ement ................................................................................................................................. 107 4.1.3.1 Brushing and Clearing Defined 4 .1 .3.2 Techniques fo r Maintaining a Clear Passageway 4 .2 Fo othills Park Trail s Maintenance Plan (January 29, 2002) .......................... 107 .......... 10 7 ..... 109 4.2 .1 Recomm ended Revisions ............................................................................................................................... 109 4.2.2 Existing Fire Mitigation and Fuel Management in the Foothills Park Trails Maintenance Plan .................... 110 5 References ............................................................................................................................................................................ 1 13 15 January 2009 4 APPENDIX A • CITY OF PALO ALTO UTILITIES City of Palo Alto Foothills F ire M anagement Plan Update LIST OF FIGURES Figure 1: City of Palo Alto Ov erview ............ 12 Fi gure 2: 1997 Fire Managem ent Zon es ......................................................................................................................................... 16 Figure 3: Wildl and Sur face Fue ls ................................................................................................................................................... 20 Fi gure 4: Spatial Data Require d for Fire Behavior Modeling ........................................................................................................ 22 Fi gure 5: Comparison of T or ching and Acti ve Crown Fire ............................................................................................................ 23 Figure 6: Crown Fire and Torching Potential. ................................................................................................................................ 24 Figure 7: Pr edi cted Fl ame Length .................................................................................................................................................. 25 Fi gure 8: Pr edi cted Rate of Sprea d ................................................................................................................................................. 26 Figure 9: Locati ons of Cul tural and Environmental Sensitive Resources in Pearson-Arastradero Preserve .................................. 29 Figure 10 : Locations of C ul tural and Environmental Sen sitive Resour ces in Foothills Park ........................................................ 30 Fi gure 11 : Sensiti ve Species Known or Potentiall y Occurring in Foothill s Park or Pearson-Arastradero Preserve ....................... 37 Figure 12 : Soil Types in Foothills Park and Pearson -Arastra dero Preserv e ................................................................................... 38 Fi gure 13: Pr oj ect Goals and Actions ............................................................................................................................................ 40 Fi gure 14: Pearson-Arastradero Preserve Current Fu el Management Areas .................................................................................. 42 Figure 15: Foothill s Park Current Fuel Management Areas ........................................................................................................... 43 Figure 16: Recent Treatme nts in Pearson-Arastradero Preserv e .................................................................................................... 44 Fi gure 17: Recent Treatme nts in Foothill s Park ............................................................................................................................ 45 Figure 18: Listing of Proj ect Locati ons .......................................................................................................................................... 50 Fi gure 19: Proposed Treatment Locations in Pearson -Arastr adero Preserv e ................................................................................. 5 1 Fi gure 20: Proposed Treatment Locati ons in Foothill s Park .......................................................................................................... 52 Fi gure 2 1: Treatm ent Methods and Interv al s .................................................................................................................................. 53 Fi gure 22 : Listing of Proj ect Locati ons fo r Evacuation and Access ............................................................................................... 55 Fi gure 23 : Evacuati on Routes External to Foothill s Park and Pearson-Arastradero Pr eserve ........................................................ 56 Figure 24: Listing of Proj ect Locati ons fo r Fire Fighter Safety Fuel Modi fi cati on ....................................................................... 57 Fi gure 25: Li sting of Proj ect Locati ons fo r Defensibl e Space ........................................................................................................ 59 Fi gure 26: Listing of Proj ect Locati ons fo r Ignition Prevention ..................................................................................................... 59 Figure 27: Listing of Proj ect Locati ons fo r Containment Ease ...................................................................................................... 6 1 Fi gure 28 : Listing of Proj ect Locati ons fo r Ecosystem Health ...................................................................................................... 62 15 Ja nua ry 2009 5 APPENDIX A • CITY OF PALO ALTO UTILITIES City of P alo A lto F oothills Fire Management Plan Update Figure 29: Unit Costs fo r Fuel Reducti on Treatment Methods Figure 30 : Funding Mechani sm s. Figure 3 1: Initial Priority of Removal for Brush ............................................................................................................................ 76 Figure 32 : Pruning Example .......................................................................................................................................................... 77 Figure 33 : Pruning Example .......................................................................................................................................................... 95 Figure 34 : Shrub Spacing ............................................................................................................................................................... 96 Figure 35: Fire Protecti on Resources ............................................................................................................................................. 98 Figure 36: Em erg ency/Maintenance Access Points ..................................................................................................................... I 02 Figure 37: Vehicle Turn-around Des ign Summary ...................................................................................................................... I 09 15 January 2009 6 APPENDIX A • CITY OF PALO ALTO UTILITIES City of PaloAlto Foothills Fire Management Plan Update PART A -FIRE HAZARD ASSESSMENT AND FUEL MANAGEMENT PLAN/ PROJECTS I 5 Janua,y 2009 APPENDIX A • CITY OF PALO ALTO UTILITIES City of Palo Alto Foothills Fire Management Plan Update 1 EXECUTIVE SUMMARY The Fire Management Plan update process addresses a broad range of integrated activities and planning documents to address and mitigate the impacts of fire hazards in the Palo Alto Foothills Area. The area of interest includes the areas west of Foothills Expressway to the city limits of Palo Alto. Fire mitigation project areas include the boundaries of Foothills Park and Pearson-Arastradero Preseive within this area of interest. The Fire Management Plan Update addresses the following key items: • Fire Hazard Assessment • Regional Evacuation Routes • Review of Municipal Ordinances • Staffing of Station 8 • Wildland Fire Management Recommendations and Mitigations • Updates to Pearson-Arastradero Trails Master Plan and Foothills Trail Maintenance Plan • CEQA Documentation • Implementation Plan and Potential Funding Community Participation. Community participation in the development of the plan began with the refinement of the scope of work and selection of the consultant team. Three community meetings were held at key points in the planning process to gather continued input from the community. A stakeholder group made up of adjacent jurisdictions, neighborhood associations, special interest groups , volunteers etc. also participated in the planning process . An environmental review in accordance with the California E nvironmental Quality Act (CEQA) was undertaken by City Staff in conjunction with the plan development. Fire Hazard Assessment. There are many ways to assess fire hazard. Most utili ze the three main factors of fuels , weather, and topography , with possible inclusion of elevation or fire history. Fire behavior was chosen as the means to assess fire hazard since it can identify locations where containment may be easiest, and where access may be precluded during the time of a fire. In addition, fire behavior outputs can identify locations where structures or natural resources may be unduly harmed by a wildfire , as well as locations where fire effects may be inconsequential to natural resources. Not every area identified as a potential fire hazard can be modified to produce low-intensity fires. Not only would this be too costly , but environmental impacts would also be unacceptable. Results of Fire Behavior Analvsis. Fire behavior was analyzed for the entirety of the Foothills Area, including adjacent neighborhoods , property owned by Midpeninsula Regional Open Space District (MROSD), and Stanford University. Flame length, rate of fire spread and potential for crown fire were three characteristics considered in the analysis. The following are generalities obsetved: Flame lengths follow fuel types, with long flame l engths in chaparral and untreated grass, and short flame lengths in woodlands and mowed grass. The largest areas oflong flames are located in Foothill Park and Monte Bello Open Space Preseive. Low fire spread rates were predicted in woodlands and forests, and fast 15 January 2009 8 APPENDIX A • CITY OF PALO ALTO UTILITIES City of P alo A lto F oothills Fire Management Plan Update spread rates in untreated grass and chaparral. There is very little active crown fire predicted within the Foothills area, however, the potential for trees to torch is high throughout the treed portion of the Foothills area. Torching is caused by low-hanging limbs , or ladder fuels. Wildland Fire Management Recommendations and Best Management Practices Treatments were strategically placed to achieve the following goals: • Life Safety • Structure and Infrastructure Protection • Ignition Prevention • Fire Containment • Resource Enhancement Treatments were identified for 51 project areas. The most visible recommended set of projects will be to conduct roadside treatments along Page Mill Road, Arastradero Road , Los Trancos Road , and Skyline Boulevard. Other projects entail the continuation of mowing along trails and some boundaries , grazing along the selected segments of the perimeter of both Parks/Preserves, treatments to install and maintain defensible space around structures, treatments around barbeques to minimize the chance ofignitions, and treatments to bolster the success of fires containment efforts within the parks. Fuel management treatments can also enhance natural resources , through targeting non-native invasive plants as part of biomass removal - potentially with grazing animals , mechanical mowing and hand labor -and conducting prescribed fires in selected areas under conditions consistent with fire control. Best management practices are included for each treatment type , based on the sensitivity of the resource. These include practices that consider the timing intensity of the treatment, or selection of the type of treatment methods ( e.g., whether the project would entail mowing or grazing, hand labor or mechanical equipment), the strata of treatment (e .g ., whether the project would remove lower tree limbs, or instead involve gras s mowing), and the scale of the treatment ( e.g ., to treat small or large patches). Review Recommendations Regarding Pearson-Arastradero Trails Master Plan and Foothills Trail Management Plan • Addition of fuel management and fuel reduction zones • Location of prescribed burns • Modify fuel break width for performance standards • Modify roadside treatment standards • Include fire hazard in regulatory , warning and education signs ( especially prescribed fires) Regional Evacuation Routes The Palo Alto Police Department has responsibility within City limits for evacuation operations under state law . However, multiple jurisdictions will likely be involved in an event in the Foothills. Evacuation routes 15 J a nua ry 2009 9 APPENDIX A • CITY OF PALO ALTO UTILITIES City of Palo Alto Foothills Fire Management Plan Update should not be blocked anywhere, regardless of jurisdiction or ownership ; this is especially important because most of the regional evacuation routes span multiple cities, ownership categories and protectionjurisdictions. The following recommendations will help reach a reasonably safe condition along the regional evacuation routes. • Formalize agreements with adjacent landowners for ingress and egress routes (from parks) and offsite refuge areas • Develop partnerships to address regional evacuation routes from residential and public areas (Regional Evacuation Plan, Co mmunity Notification (multi-jurisdictional) and Unified Command) Analysis and Recommendations Regarding Staffing of Station 8 An analysis of the staffing level of Station 8 was conducted that considered the distribution and concentration of fire personnel and equipment in relation to the incidents. The recommendation was to maintain current staffing levels. Response times for incidents are significantly longer from other stations, even when considering mutual aid offered by other jurisdictions. The fire behavior analysis indicates the potential for fast-moving fires of high intensity , further justifying the current staffing level s . Review of Municipal Ordinances The existing code is comprehensive; only minor changes are recommended. These include : • Expand Wildland Urban Interface Fire Area (between Foothill Blvd & Highway 280) • Fire Protection Planning: Begin early in permitting process • Expand Defensible Space Requirements: Maintain roof free of materials • Expand Access Requirements: bridge load limits , parking restrictions • Additional guidance for Maintenance of Defensible Space • Ignition Source Control • Fencing • Signage • Mechanical E quipment Ignition Prevention • Restriction on Smoking at Pearson-Arastradero Preserve Implementation Plan and Potential Funding for Fire Management Recommendations Implementation of this plan will be managed by th e City of Palo Alto staff, including th e Fire Department, the Police Department (evacuation, notification, neighborhood preparedness coordinators), and Open Space (rangers). Volunteer groups , such as Acterra, Friends of Foothills, and other groups should continue to be involved and encouraged to help with the implementation. Further, the City should work with mutual aid government agencies and other stakeholders on an ongoing basis . 15 January 2009 JO APPENDIX A • CITY OF PALO ALTO UTILITIES City of Palo Alto Foothills Fire Management Plan Update Prioritization of Treatments The following is the priority of treatment types: 1. Life Safety 2. Structure and Infrastructure Protection 3. Ignition Prevention 4. Fire Containment 5. Resource Enhancement Cost Estimates The total five-year cost to implement the recommended proj ec ts is estimated at slightly less than $700,000. The largest cost, at slightly more than $400,000, is to manage 19 containment areas. The initial treatment for segments of major evacuation routes is estimated to cost almost $178,000 . The use of California Youth Authority Crews may offer a means to reduce costs for the hand labor-based treatments. Without volunteers pre-treatment surveys and follow-up may cost $100 ,000 over the next five years. 15 January 2009 11 APPENDIX A • CITY OF PALO ALTO UTILITIES 1/23/2017 FOOTHILLS FIRE MANAGEMENT PLAN 2016 UPDATE APPENDIX A • CITY OF PALO ALTO UTILITIES Acknowledgements This document was prepared by Wild land Reso urce Management under contract to the City of Palo Alto. Contributions Daren Anderson ................................. Co mmunity Serv ices Department Curt Dunn ............................................ Community Services Departme nt Walter Pa ssmore ................................ Public Works Department Dinaa Alco cer ...................................... Publi c Works Department James Henrickso n-----------------------Fire Departm e nt Nathan Rainey .................................... Office of Emergency Services Mark Nadim ....................................... Midpenninsu la Fire Safe Co u nci l Image 1: Palo Alto Fire Department Brush Rig Patrolling Trapper's Trail Pa ge 2 of 35 APPENDIX A • CITY OF PALO ALTO UTILITIES Table of Contents Exec utive Summary ................................................................................................ , ..................................... 4 Foothills Fire Management Plan Update Process ......................................................................................... 4 Accomplishments .......................................................................................................................................... 5 Post-Treatment Fire Behavior ....................................................................................................................... 6 New Recommendations ............................. , .............. , ................................................................................... 7 Program Costs ............................. , ................................................................................................................. 7 APPENDICES .................................................................................................................................................. 8 APPENDIX A. Treated Areas .......................................................................................................................... 9 APPENDIX B. New Treatments Areas and Activities ..................................................................................... 0 APPENDIX C -Treatment Areas to be Abandoned or Revised ....................................................................... 3 APPENDIX D -Program Costs ........................................................................................................................ 0 Image 2:Treated area in Foothills Park Page 3 of 35 APPENDIX A • CITY OF PALO ALTO UTILITIES Executive Summary The 2009 Foothills Fire Management Plan (FFMP) addressed a broad range of integrated activities and produced planning documents to address and mitigate the impacts of fire hazards in the Palo Alto Foothills Area. The area of interest includes the areas west of Foothills Expressway to the city limits of Palo Alto. The FFMP addressed fire hazard assessment and regional evacuation routes, wildland fire management recommendations and mitigations. The FFMP also reviewed non-project related topics such as Municipal ordinances related to wildland fire and recommended staffing levels for Station 8 in Foothills Park . It proposed an implementation plan and identified potential funding, and included CEQA documentation for the proposed projects. Last, it recommended updates to the Pearson-Arastradero Trails Master Plan and Foothills Trail Maintenance Plan. This 2016 FFMP update focuses on topics directly related to fire hazard mitigation, emphasizing project- related improvements. This program is also documented in the City of Palo Alto Local Hazard Mitigation and Adaptation Plan (LHMAP) and demonstrates how the City mitigates wildfire risk through the implementation of projects in the FCWPP. This update provides a description of significant accomplishments achieved since 2009 in the areas of treatment of evacuation routes, prescribed fire and associated containment lines, and residential boundary treatments (mowing, disking). Program costs are also provided showing how allocated funds were used. City funding since 2009 has totaled $452,332. A post treatment fire behavior assessment is also included in this update to describe the threat but also to identify areas of future treatments. The most important benefit has been an increased ease of evacuation and emergency access through the ex pansion of managed roadside vegetation. The roadsides along Arastradero Rd , Los Trancos Rd and Page Mill Rd are all safer for access and egress through increased line of sight, reduced fuel volumes and reduction of ladder fuels. The probability of ignitions has been reduced through a reduction of fuels near barbeques and structures, and along roadsides . The potential for containment of a wildfire (both within the parks, and between City property and neighbors) has been enhanced through the creation, maintenance, and enhancement of reduced fuel zones. These treatment areas are strategically placed along property perimeters and ridgelines. The update also incorporates the participation in the county-wide Community Wildfire Protection Program (CWPP), which includes a Palo Alto/Stanford annex.1 The county CWPP project began after the initiation of this planning update, but future updates will be transitioned to the Palo Alto/Stanford Community Wildfire Protection Plan on a five year update cycle . Foothills Fire Management Plan Update Process The 2009 Foothills Fire Management Plan (FFMP) addressed a broad range of integrated activities and produced planning documents to address and mitigate the impacts of fire hazards in the Palo Alto Foothills Area. The area of interest includes the areas west of Foothills Expressway to the city limits of 1 The Santa Cla ra Co unty Co mmunity Wildfire Prote ction Pr o gram (CWPP) is a collaborative appro ach for reducing wild land fire risks to communities and the environment. The plan includes an analysis of conditio ns such as fire apparatus access , community evacuation , fuels , topography, and weather. The plan also includes proposed projects developed th rough the wor ks hops . http://www.sccfd.org/santa-cla ra-county-community-wildfire-protection-p la n Page 4 of 35 APPENDIX A • CITY OF PALO ALTO UTILITIES Palo Alto. The 2009 Plan addressed fire hazard assessment and regional evacuation routes, wildland fire management recommendations and mitigations. The FFMP also reviewed non-project related topics such as Municipal ordinances related to wildland fire and recommended staffing levels for Station 8 in Foothills Park. It proposed an implementation plan and identified potential funding, and included CEQA documentation for the proposed projects. Last, it recommended updates to the Pearson-Arastradero Trails Master Plan and Foothills Trail Maintenance Plan . This 2016 update focuses on topics directly related to fire hazard mitigation, emphasizing project- related improvements. This program is also documented in the City of Palo Alto Local Hazard Mitigation and Adaptation Plan (LHMAP) and demonstrates how the City mitigates wildfire risk through the implementation of projects in the FCWPP. The City of Palo Alto contracted with Wild land Resource Management Group, who also completed the 2009 FFMP effort, to assist in this update. Staff members from Community Services, Fire, Public Works Departments and the Office of Emergency Services formed the planning team to work with Wildland Resource Management Group. Additionally, members of the Midpennisula Fire Safe Council also provided input to this update. Accomplishments Since the Foothills Fire Management Plan was adopted in Jan 2009 significant progress has been made. Perhaps two of the most significant accomplishments have been advances in organization and relationships . The City will be taking an additional step to adopt the FFMP as a Community Wildfire Protection Plan. With a Community Wildfire Protection Plan (CWPP), the City is in a better position to receive grants from Federal or State funding sources. Because the FFMP satisfied the requirements of a CWPP , the City was able to simply obtain an approval signature from the local CAL FIRE representative and send it to the California Fire Alliance where it became official. Another significant advance was the development of an ongoing relationship with the Santa Clara County Fire Safe Council (SCFSC). The City developed a 5-year Stewardship Agreement with the SCFSC to help implement the FFMP/CWPP. An annual work plan is mutually agreed-upon, based on availability of funding and capacity of the SCFSC. The SCFSC typically supervises and pays for CAL FIRE hand crews to reduce fuels along roads and in say Foothills Park and Pearson-Arastradero Preserve , and provides community outreach and education programs in the City regarding wildland fire. A novel organizational strategy was adopted which recognizes that the FFMP involves and requires support from many City Departments. While the program originated in the Fire Department, the Public Works Department, Office of Emergency Services and Community Services Department are all key to the success and beneficiaries of the projects. As such, representatives of each of these four departments meet regularly (generally quarterly, but sometimes more often) to strategize effective actions. The Chair of this inter-departmental group rotates between the departments. Funding is pooled from all four departments based on the anticipated costs of performing fire hazard reduction work under their responsibility. For example, roadside treatments on public right-of-ways are funded by Public Works whereas evacuation treatments along roads inside parks are funded by the Community Services Department. Through efforts and funding of the City and with support of the SCFSC, many on-the-ground projects Page 5 of 35 APPENDIX B • CITY OF PALO ALTO UTILITIES APPENDIX B APPENDIX B: MAP OF CPUC HIGH FIRE THREAT AREAS IN CALIFORNIA • CITY OF PALO ALTO UTILITIES APPENDIX B • O 15 30 -- CITY OF PALO ALTO UTILITIES ,._.....,.....__,, .............. ~ ..... -............ -...... ,___i. .... ,..,,.... ... ....,..~ -p-bmr:!.IJl'f>-~ CPUC Fire-Threat Map Adopted by CPUC January 19, 2018 PUC:F Tl Fire-Thr eat Areas G 1er -leva e<I 1er 3 - ountie$ reme -- APPENDIX C APPENDIX C: MAP OF CPUC HIGH FIRE THREAT AREA IN PALO ALTO • CITY OF PALO ALTO UTILITIES APPENDIX C • + CITY OF PALO ALTO UTILITIES PUC F re -h ea, 1\-bp - -ier.a Tre -i Palo Al:c is .all areas ·i • n t-e c ty im ts wes of High\/ y 290, and it i s an -e 2 . •lounta 111 I APPENDIX D APPENDIX D: UTILITIES DEPARTMENT WILDFIRE MITIGATION PLAN ROLES AND RESPONSIBILITIES • CITY OF PALO ALTO UTILITIES APPENDIX D CI T Y M A N A G E R D I R E C T O R - U T I L I T I E S Assi s t a n t D i r e c t o r - Op e r a t i o n s As s i s t a n t D i r e c t o r - En g i n e e r i n g Ma n a g e r - El e c t r i c O p e r a t i o n s Man a g e r - WG W O p e r a t i o n s Op e r a t i o n s S u p e r v i s o r - El e c t r i c S y s t e m O p e r a t i o n s Uti l i t y S y s t e m O p e r a t o r Op e r a t i o n s S u p e r v i s o r - WG W O p e r a t i o n s Man a g e r - WG W E n g i n e e r i n g Man a g e r - El e c t r i c E n g i n e e r i n g Ut i l i t i e s D e p a r t m e n t W i l d f i r e M i t i g a t i o n P l a n Ro l e s a n d R e s p o n s i b i l i t i e s x May a c t a s I n c i d e n t C o o r d i n a t o r dur i n g P S P S x Pr o v i d e s u p d a t e s t o D i r e c t o r – Uti l i t i e s x Co o r d i n a t e s w i t h o t h e r c i t y dep a r t m e n t s x Mo n i t o r s N a t i o n a l W e a t h e r S e r v i c e and e l e c t r i c s y s t e m c o n d i t i o n s x Ini t i a t e s P S P S a p p r o v a l p r o c e s s x When a p p r o v e d , w i l l m a k e d e c i s i o n to i m p l e m e n t P S P S x Up d a t e s p h o n e s y s t e m m e s s a g i n g x Pr o v i d e s u p d a t e s t o I n c i d e n t Co o r d i n a t o r d u r i n g P S P S x Pr o v i d e s u p d a t e s t o I n c i d e n t Co o r d i n a t o r d u r i n g P S P S x Pr e p a r e s W a t e r s y s t e m f o r P S P S event Uti l i t i e s E n g i n e e r i n g S t a f f : x Engi n e e r i n g M a n a g e r - x over a l l r e s p o n s i b i l i t y f o r ensu r i n g t h e i m p l e m e n t a t i o n of t h e M i t i g a t i o n P l a n x Co o r d i n a t e m e e t i n g s a n d up d a t e s t o p l a n a s n e c e s s a r y x Pr o v i d e s s u p p o r t t o I n c i d e n t Co o r d i n a t o r x Pr o v i d e s s u p p o r t t o E l e c t r i c a n d WGW O p e r a t i o n s x Pr o v i d e s i n s p e c t i o n a n d c o n s t r u c t i o n engi n e e r i n g d e s i g n a n d p r o c u r e m e n t sup p o r t a f t e r a n e v e n t x Co m p l e t i o n o f d e s i g n , p o l i c y a n d pr o c e d u r e , a n d c o n t r a c t o r s e l e c t i o n requi r e m e n t s Man a g e r – U t i l i t i e s Co m m u n i c a t i o n s x Co m p l e t i o n o f o p e r a t i n g , co n s t r u c t i o n , i n s p e c t i o n , a n d mai n t e n a n c e r e q u i r e m e n t s o f Mi t i g a t i o n P l a n x May a c t a s I n c i d e n t C o o r d i n a t o r dur i n g P S P S x Pr o v i d e s u p d a t e s t o D i r e c t o r – Uti l i t i e s x Co o r d i n a t e s w i t h o t h e r c i t y dep a r t m e n t s x May a c t a s I n c i d e n t C o o r d i n a t o r dur i n g P S P S x Pr o v i d e s u p d a t e s t o D i r e c t o r – Uti l i t i e s x Co o r d i n a t e s w i t h o t h e r c i t y dep a r t m e n t s x Co o r d i n a t e s r e s t o r a t i o n pr o c e s s x Co o r d i n a t e s c o m m u n i c a t i o n t o resi d e n t s , c u s t o m e r , e t c . x Pr e p a r e p r e s s r e l e a s e s x Li a i s o n w i t h c i t y C h i e f Co m m u n i c a t i o n s O f f i c e r x Ap p r o v e s P S P S , w h e n w a r r a n t e d x Li a i s o n w i t h C i t y M a n a g e r a n d o t h e r ci t y d e p a r t m e n t s Fi r e D e p a r t m e n t Of f i c e o f E m e r g e n c y Ser v i c e s P u b l i c W o r k s Dep a r t m e n t – Ur b a n Fo r e s t r y Co m m u n i t y S e r v i c e s Dep a r t m e n t – Op e n Sp a c e a n d P a r k s PS P S – Pu b l i c S a f e t y P o w e r S h u t o f f WG W – Wat e r , G a s , a n d W a s t e w a t e r • CITY OF PALO ALTO UTILITIES APPENDIX E APPENDIX E: SUMMARY OF REQUIREMENTS OF SB 901 • CITY OF PALO ALTO UTILITIES APPENDIX E SB 901 REQUIREMENTS Requirement Statutory Language Cross Reference Persons Responsible An accounting of the responsibilities of persons responsible for executing the plan. Page 7 - Roles and Responsibilities Appendix D Objectives of the Plan The objectives of the wildfire mitigation plan. Page 5 - Objectives Preventive Strategies A description of the preventive strategies and programs to be adopted by the local publicly owned electric utility or electrical cooperative to minimize the risk of its electrical lines and equipment causing catastrophic wildfires, including consideration of dynamic climate change risks. Page 9, 11, 15 - Completed Tasks, Ongoing Activities, Proposed Activities Evaluation Metrics A description of the metrics the local publicly owned electric utility or electrical cooperative plans to use to evaluate the wildfire mitigation plan’s performance and the assumptions that underlie the use of those metrics. Page 21 – Mitigation Plan Review and Assessment Impact of Metrics A discussion of how the application of previously identified metrics to previous wildfire mitigation plan performances has informed the wildfire mitigation plan. Page 21 – Mitigation Plan Review and Assessment Deenergization Protocols Protocols for disabling reclosers and deenergizing portions of the electrical distribution system that consider the associated impacts on public safety, as well as protocols related to mitigating the public safety impacts of those protocols, including impacts on critical first responders and on health and communication infrastructure. Page 13 – Electric System Design / Operation - Reclosers Customer Notification Procedures Appropriate and feasible procedures for notifying a customer who may be impacted by the deenergizing of electrical lines. The procedures shall consider the need to notify, as a priority, critical first responders, health care facilities, and operators of telecommunications infrastructure. Page 13 – Ongoing Fire Prevention Activities – Electric System Design/Operation - Deenergization Vegetation Management Plans for vegetation management. Page 11, 16 – Vegetation Management, Urban Forestry • CITY OF PALO ALTO UTILITIES APPENDIX E Inspections Plans for inspections of the local publicly owned electric utility’s or electrical cooperative’s electrical infrastructure. Page 12, 15 – Electric System Inspection; Drone Inspection Prioritization of Wildfire Risks A list that identifies, describes, and prioritizes all wildfire risks, and drivers for those risks, throughout the local publicly owned electric utility’s or electrical cooperative’s service territory. The list shall include, but not be limited to, both of the following: (i) Risks and risk drivers associated with design, construction, operation, and maintenance of the local publicly owned electric utility’s or electrical cooperative’s equipment and facilities. (ii) Particular risks and risk drivers associated with topographic and climatological risk factors throughout the different parts of the local publicly owned electric utility’s or electrical cooperative’s service territory. Page 3 – Wildfire Risk Factors CPUC Fire Threat Map Adjustments Identification of any geographic area in the local publicly owned electric utility’s or electrical cooperative’s service territory that is a higher wildfire threat than is identified in a commission fire threat map, and identification of where the commission should expand a high fire threat district based on new information or changes to the environment. Page 10 – High Fire Threat Area Identification Enterprise wide Risks A methodology for identifying and presenting enterprise wide safety risk and wildfire-related risk. Page 3 – Wildfire Risk Factors Restoration of Service A statement of how the local publicly owned electric utility or electrical cooperative will restore service after a wildfire. Page 19 – Response to Wildfire Incident – CPAU • CITY OF PALO ALTO UTILITIES APPENDIX E Monitor and Audit A description of the processes and procedures the local publicly owned electric utility or electrical cooperative shall use to do all of the following: (i) Monitor and audit the implementation of the wildfire mitigation plan. (ii) Identify any deficiencies in the wildfire mitigation plan or its implementation, and correct those deficiencies. (iii) Monitor and audit the effectiveness of electrical line and equipment inspections, including inspections performed by contractors, which are carried out under the plan, other applicable statutes, or commission rules. Page 21, Appendix E – Mitigation Plan Review and Assessment; Qualified Independent Evaluator The local publicly owned electric utility or electrical cooperative shall contract with a qualified independent evaluator with experience in assessing the safe operation of electrical infrastructure to review and assess the comprehensiveness of its wildfire mitigation plan. The independent evaluator shall issue a report that shall be made available on the Internet Web site of the local publicly owned electric utility or electrical cooperative, and shall present the report at a public meeting of the local publicly owned electric utility’s or electrical cooperative’s governing board. Page 22 – Auditing • CITY OF PALO ALTO UTILITIES APPENDIX F APPENDIX F: STATUS OF PROPOSED ACTIVITIES TO REDUCE RISK OF WILDFIRE Activity City Staff Member Responsible Description/Status Projected Completion Date Status Date 1 Overhead line rebuild Engineering Manager – Electric Staff is working on drafting the Scope of Work and Request for Proposal for consultants/contractors to bid on the design and construction of a new/replacement utility line in the High Fire Threat Area (Foothills). Proposals and bids received were either incomplete or at very high cost. Utilities staff is proceeding with plans to do design in-house staff. Utilities engineering staff is designing the first overhead segment to be converted to underground with construction that began February 2021 Summer 2025 4/26/2021 2 Document construction standards for high fire threat areas Engineering Manager – Electric New construction standards for use in the high fire threat areas will be developed as Phase I of the Overhead line rebuild/relocation/replacement project listed item 3. Staff will work with the consultant selected for the overhead line rebuild project to develop the standards based on staff input, industry best practices, and existing material stock items. This will be phase I of the project before any design work is started. The need for new construction standards are still being assessed. New construction standards were part of the Foothills overhead line rebuild contract which staff decided June 2022 4/26/2021 • CITY OF PALO ALTO UTILITIES APPENDIX F to design in-house. If 100% of the overhead line is built underground then new standards may not be required. 3 Deenergization (PSPS) policy and procedures Assistant Directors – Engineering and Operations Documents for a PSPS Policy and a PSPS Procedures have been developed and are being reviewed for approval. Some procedures have already been implemented to meet the concerns brought on by Red Flag warnings in October 2019. Documents for a PSPS Policy and Procedures are being reviewed. Summer 2021 4/26/2021 4 Fiber optic cable extension Engineering Manager – Electric Staff is working on development of the design to install new fiber optic cable to enhance the communications capability in the Foothills for City staff. Depending on the staff availability this may be done as its own project or as part of the overhead line rebuild. The construction of the fiber optic cable will be done concurrently with either the overhead line rebuild or underground design. Segments of underground communication conduit are being installed with the electric substructure work. Summer 2025 4/26/2021 5 Emergency generator assessment Engineering & Operations Managers – WGW Water, Gas, and Wastewater Engineering and Operations staff are discussing the need for emergency backup generators at the water pumping stations and wastewater lift station in the Foothills. The generator assessment is complete and staff is now working on the generator requirements for each site. Summer 2022 4/26/2021 • CITY OF PALO ALTO UTILITIES APPENDIX F 6 SCADA switch installation Engineering & Operations Managers – Electric The switch has been identified but requires replacement with a SCADA controlled switch and underground substructure installation for fiber optic communication cables. Depending on the staff availability this may be done as its own project or as part of the overhead line rebuild. The installation of a new SCADA controlled switch will be completed as part of the overhead or underground line rebuild. Summer 2025 4/26/2021 7 Drone inspection of utility lines in foothills TBD No progress on this item at this time. The quality of this type of service when investigated 3 years ago did not meet Utilities or Urban Forestry needs. Staff is hoping that newer technologies will be more useful. No change TBD 4/26/2021 8 Controlled burn policy and plans Operations Manager - Electric / CPA Fire To be in conjunction with the City of Palo Alto Fire Department No change TBD 4/26/2021 9 New Weather Station Engineering & Operations Managers – Electric Electric Operations staff is working to install a new weather station at Montebello Reservoir. The construction of a new utility pole is completed. Installation of a new weather station to follow. December 2021 4/26/2021 • CITY OF PALO ALTO UTILITIES APPENDIX F 10 Risk Assessment of wildfire in the foothills Utilities Strategic Business Manager Staff is in negotiation with a consultant to complete a Risk Assessment of wildfire in the foothills due to utilities electric facilities. An assessment of the City’s liability risk to a wildfire was completed by ABSG Consulting Inc.. This was an actuarial study for insurance purposes. It has not resulted in any planned operational changes. April 2021 4/26/2021 11 Proactive Pumping of water up to reservoirs Engineering & Operations Managers – WGW Water, Gas, and Wastewater Engineering and Operations staff are discussing the need to proactively pump water up to the reservoirs before electric lines are deenergized. This activity was provided in the mitigation plan report but not listed in Appendix F. It will be part of staff notification process in the PSPS Policy and Procedures. Summer 2021 3/25/2021 12 NEW ITEMS WILL BE ADDED AS IDENTIFIED/NEEDED TBD – To be Determined • CITY OF PALO ALTO UTILITIES APPENDIX G APPENDIX G: DRAFT PSPS POLICY AND PROCESS • CITY OF PALO ALTO UTILITIES '-..,.I I 'f ~·t- PALO ALTO Ufl llflCS PU RPOSE Po li cy and Process for Pub li c Safety Power Shutoff Devastati ng wi'ldfires lihroughout the State of Ca[ifornia have p rompted e learic ulli1ities throughout lihe state to, identify a:rea,s w :ith:in the;ir jurisdiction ·tliJ.a t are stm:ejptible to power-line igJirit.ed wildfir es and to take steps to prevent thei r ocrurr e nce_ One of t ihese steps is a proactille deenergjzation of e l ectric lines., ,often ca 'l le d Ptl'b[ic Safety Powe;r Shutdown ,(PSPSI, by tihe State and other Ca l ifu:rnia utiliti es _ The City of Pa 'lo Alto's Utifiliies Departm e nt (CPA.U) has tihe a uthorrty to 1preem;ptively slhu t ,off 1power due to fi re-;tlueat conditions; however, lihis optii o:n wiU only be used as a ast reso:rt in eirora o:rd i nary dircumstan.ces_ This d ocu ment outli nes tlhe 1policy alilid process to identify the lire threat conditions tih a,t wil l d ictate PSPS of CPA.U fadfl ties by CPAU _ CPA.U, in conjunction with Oity Staff, 'wi tl m ake a ca~- case dedsiion to slhu t -off power based on cmi te;ria tisted in tfnis document. The ellectr,ic lines most like ly to b e co.n:si dered for PSPS are fin.es in Pa. o A!lto west of H igtnwa,y 280 whim are in a Tie r 2 (el evated ris!k far witdfire) area o:n the CPUC Fiire Threat Map_ Palo Alm cou d a lso be impacted lby PSPS a.ctillities in:itiiated by PG&f o n the t r ansmissi o n system_ CPA.U typically deals with two types o f outages, 1) ~lanned outages for co:nstructiom maintenance, ,or 2) Un p!a nned ou,tages due to, circumstances beyond our mmrnl, e.g. car po'le ac<Jidents, lbirds/tree contact w .ith ove rhead lines,. equi pment fai ure, etc~ (commonly referred to as a fautt o:r s!hon-cirrnit)_ The PSPS iis a p reempliive sh'utdown of power to prevent lihe occu r;rence ,of lihe faults that cause lihe unplanned outages. from occurr ing when high fire threat conditions exist, as S'parts from a f a lilt or energized wi res o:n lihe ground could result in wildfires_ POLICY CPA.U considers the s:afety of lihe community our top ,prioriity and wil I ta'ke the rnecessary steps. to mitigate tine threat o f wildfires .associated w ,ith overhead el ectric [in.es and aiSsooiated e q u ipment owned a:nd ope;ra ted 'by CPAU _ In extreme cond itions, this will req,,i ire CPAU 'to deenergize power tin.es far lihe safety of llife and p r ope;rty_ PROCESS Be low -s a summary of mks ·for p roactille deenergjzatiio:n and ,restoration of tihe ellectri c d'istributio:n system as pan ,of lihe City'.s wildfire mitigation plan_ Detai Is of tlhe steps to i mplernent a PSPS are i n aUtilitie:s Wiirlfire .Mitigation Procedure for Pul'Jfic .Safety Power Shutoff'_ Task# DeS<Jr iptio n Page l_ rDetemmation of possi ble need for PSPS bas-ed on weilllterforecast and field amcitiORS -----------·-------------2 2_ Preappmva .and Authorization t o n otify c □:stooner:s ,of possible PSPS bilSE!d <Jill we.niter roreG1sls .. _, ______________ 2 3_ Notification of affected rustomers of possible PSP5 ------------------------------------------------------------------------2 4 _ Monitoring of real time weather and field conditia~ ----·-·-·----------·-·-·-·--·-----·-·---·-·-·-·-·-----·-·-·--·-·-·-·-·--3 5 _ Notification of customers of impemlini: outage _______________________________________________________________________________ 3 Page lof 3 APPENDIX G • CITY OF PALO ALTO UTILITIES 0 Po li cy and Process for Publi c Safety Powe r Shutoff 'v i IV :.n- PALO ALTO UT ILIT ICS 6"_ IDeenergjznion, of power line ----·-·--·-·-·-·-·------·---·-·-·-·-·------·--·--·-·-·-·------·--·--·-·-·-·--------·--·-·-·-·--3 7 _ llnspec:tion a □d patrol of line ________________________________________________________________________________________________________ 3 8_ Notification of customers o f impending restorallian --·-·-·-·-·-----·-···--·-·-·-·-·------·-·--·-·-·-·-·------·-·····-·-·-·-·--3 g _ IReenetrgize power line -·-·-·-·-----·--·-·-·-·-·-·-·------·-·--·-·-·-·-·------·-·--·-·-·-·-·------·-·-·-·-·-·-·-·------·-·-·-·-·-·-·-·--3 Determi rnat ion of po:ss i bre need fo r PS.PS bacSed o weather forecast arid fiel d conditions CPAU, iim conj 11naion witl'l otiherCity Staff~ will make a ,case-by-case decision to shut off power based on tile fol lowimg ,o:onsiderations: • Red f l!ag Warlil'in:gs iissued by tihe National Weather Service (NWS) for tihe fire ·weatliter zam,e that iindudes tihe foolihills Area (San.ta Cruz Mountains); • City staff assessments of toca cand'itians, including wind speed 1(sust.ainecl arnd gust), lhumiclity am:I tempe;rallure, fu:el l moist!ure, fu:ell loading and data fmm weather stallions; • Rea htime inf ormation fr,am S'ulff tocated i n areas 1identif1ied as at risk of being subject ta, mreme weatiher ,c:cand itiio:ns; • I nput from dty Fire and Urban Forestry sta:fif; • Input ·from loca'I and state fire autllo:rities 1regardim:g the potentia'I ,ccamequerices of w i ldfires in se l ect l.ocations; • Awareness of mandataryorvo'luntary evacuation o:r ders ii n 1pllace; • IEJ!!,pe-cted impact of de-eriergilii m:g d rirnits on essentiial servJce.s~ • Notmcations to locajl governments a111d public offidiials; and • Satiety and potential -mpacts to commu nitiies and rnst,omer:s The decision process wil I ,occur as soon as the inf ormation i s awilab'le to, fadil il:ate ari im;ormed decision and timely 111otiificallio:n of c,ustome;rs_ There may be instances where weather c,and i:tJio:ns rap'idly dhange and advance notice to, wsto:mers ii.s 1not possible. It is antiidpated that this will be· i nf requelilt, if at allL Preapproval arnd Au orization to no -fy customers of possibl e PSP.S. based on weather forecasts Once iit is determin.ed tihat a PSPS may be required, staff wil I pre.se m,t a111 a&sessme111t to tile Uti lities Director o:r llis./her de.signee will revJew, asse.ss, an d approve tile request.. Notificatiorn of affected rustomers of possib le PSPS If ai PSPS iis, a pp roved, staff wil l notify tihe City Manager's Office (CIO}, OE'S, Po rice , Fiire, 911. Oispallclil, WGW Ope;ratiions, Uti[ities Oust,omer Senliice arid Uti l'ities Commu:nicaliio:ns"_ Tiley iri tum will communicate w itih tihe community~ c,ustomer.s impacted, and tile media_ Page 2of3 APPENDIX G • CITY OF PALO ALTO UTILITIES 0 'v i IV :.n-Po li cy and Process fo r Publi c Safet y Pow e r Shutoff PALO ALTO UT ILIT ICS M cmitoling of r ea I t i m e w eath er and fie ld condit ions Staff wm monitor rea'l time a11d u;pdated forecast informatio11 to determine if forecasts, are accurate and tile PSPS. .shou'ld ornur as pla11ned; if d1a11ges liteed to lbe m ade to tile PSPS sclledu[ing; or if lhe PSPS ,can lbe cancelled. Notifi catiol'l of cust omers of i mp ern:l i ng outage If a PSPS ii,s, to• ,occur, staff will notify tile· City Mla niager's O ffice (00), OB, Po tice,. f i re, 911 Dispatch, WGW Operatiio:ns, lhiti:ties Oust,omer Serviice a11dl lhil ities Commu:nica1ions . Tiley ill tum wi[I communicate w:ilih 1!h e community, rnstomer.s impa:cted, and tile media. Dee n ergi zation of power li ri e At tlite determined time, Uiti tiliies Elleomic OperatioliliS staff wil l deene;rgize all lli11es ii n areas iide;ntified for l?SPS Insp ection an d p atrol of line After the wealiheir lhiliS passed and it i s safe to d'.o so, El ectric Qperatio11s staff will 1perform a filll v,i,su.i l ili11'ipection of lihe distJr1ibU1io11 system to ensure tlhat tlite;re iis no, d.imiage before ree11ergil!ing tile ti ne. Any d'ama:ge wi ll be assessed and repairs wil I need to be m ade before 1power ,can lbe restored to those secitions o r anytlli11g downstreaml Notifi catiol'l of customers of i m ending restoration Staff W:i ll notify lihe City Ma11ager'.s Office (CI O).. OES, Police,. Fi re,. 911 Dispatch, WGW Oper atioliliS, Uiti l iliies, Customer Service and Uliil ities Commu11iratiol'liS.. They i n t,um will communicate with tlhe community~ ,cust,omers iimpacted, a.nd tile media. Ree n ergize power l i n e The lli11es wi l be system.itically r eenergiz:ed as lihe lli11es a re patrolled and iin.spected, and any damage ii& r epair ed . Page 3of3 APPENDIX F APPENDIX F: STATUS OF PROPOSED ACTIVITIES TO REDUCE RISK OF WILDFIRE OR IMPROVE RESPONSE Activity City Staff Member Responsible Description/Status Projected Completion Date Status Date 1 Overhead line rebuild Engineering Manager – Electric Staff is working on drafting the Scope of Work and Request for Proposal for consultants/contractors to bid on the design and construction of a new/replacement utility line in the High Fire Threat Area (Foothills). Proposals and bids received were either incomplete or at very high cost. Utilities staff is proceeding with plans to do design in-house staff. Utilities engineering staff is designing the first overhead segment to be converted to underground with construction that began February 2021 Summer 2025 4/26/2021 2 Document construction standards for high fire threat areas Engineering Manager – Electric New construction standards for use in the high fire threat areas will be developed as Phase I of the Overhead line rebuild/relocation/replacement project listed item 3. Staff will work with the consultant selected for the overhead line rebuild project to develop the standards based on staff input, industry best practices, and existing material stock items. This will be phase I of the project before any design work is started. The need for new construction standards are still being assessed. New construction standards were part of the Foothills overhead line rebuild contract which staff decided to design in-house. If 100% of the overhead line is built underground then new standards may not be required. June 2022 4/26/2021 Attachment C • CITY OF PALO ALTO UTILITIES APPENDIX F 3 Deenergization (PSPS) policy and procedures Assistant Directors – Engineering and Operations Documents for a PSPS Policy and a PSPS Procedures have been developed and are being reviewed for approval. Some procedures have already been implemented to meet the concerns brought on by Red Flag warnings in October 2019. Documents for a PSPS Policy and Procedures are being reviewed. Summer 2021 4/26/2021 4 Fiber optic cable extension Engineering Manager – Electric Staff is working on development of the design to install new fiber optic cable to enhance the communications capability in the Foothills for City staff. Depending on the staff availability this may be done as its own project or as part of the overhead line rebuild. The construction of the fiber optic cable will be done concurrently with either the overhead line rebuild or underground design. Segments of underground communication conduit are being installed with the electric substructure work. Summer 2025 4/26/2021 5 Emergency generator assessment Engineering & Operations Managers – WGW Water, Gas, and Wastewater Engineering and Operations staff are discussing the need for emergency backup generators at the water pumping stations and wastewater lift station in the Foothills. The generator assessment is complete and staff is now working on the generator requirements for each site. Summer 2022 4/26/2021 • CITY OF PALO ALTO UTILITIES APPENDIX F 6 SCADA switch installation Engineering & Operations Managers – Electric The switch has been identified but requires replacement with a SCADA controlled switch and underground substructure installation for fiber optic communication cables. Depending on the staff availability this may be done as its own project or as part of the overhead line rebuild. The installation of a new SCADA controlled switch will be completed as part of the overhead or underground line rebuild. Summer 2025 4/26/2021 7 Drone inspection of utility lines in foothills TBD No progress on this item at this time. The quality of this type of service when investigated 3 years ago did not meet Utilities or Urban Forestry needs. Staff is hoping that newer technologies will be more useful. No change TBD 4/26/2021 8 Controlled burn policy and plans Operations Manager - Electric / CPA Fire To be in conjunction with the City of Palo Alto Fire Department No change TBD 4/26/2021 9 New Weather Station Engineering & Operations Managers – Electric Electric Operations staff is working to install a new weather station at Montebello Reservoir. The construction of a new utility pole is completed. Installation of a new weather station to follow. December 2021 4/26/2021 • CITY OF PALO ALTO UTILITIES APPENDIX F 10 Risk Assessment of wildfire in the foothills Utilities Strategic Business Manager Staff is in negotiation with a consultant to complete a Risk Assessment of wildfire in the foothills due to utilities electric facilities. An assessment of the City’s liability risk to a wildfire was completed by ABSG Consulting Inc.. This was an actuarial study for insurance purposes. It has not resulted in any planned operational changes. April 2021 4/26/2021 11 Proactive Pumping of water up to reservoirs Engineering & Operations Managers – WGW Water, Gas, and Wastewater Engineering and Operations staff are discussing the need to proactively pump water up to the reservoirs before electric lines are deenergized. This activity was provided in the mitigation plan report but not listed in Appendix F. It will be part of staff notification process in the PSPS Policy and Procedures. Summer 2021 3/25/2021 12 NEW ITEMS WILL BE ADDED AS IDENTIFIED/NEEDED TBD – To be Determined • CITY OF PALO ALTO UTILITIES City of Palo Alto (ID # 12179) Utilities Advisory Commission Staff Report Report Type: New Business Meeting Date: 6/2/2021 City of Palo Alto Page 1 Summary Title: MyCPAU Metric Title: Discussion and Update on the Utilities MyCPAU Customer Portal From: City Manager Lead Department: Utilities RECOMMENDATION This report is presented for the Utilities Advisory Commission (UAC) discussion and no action i s required. EXECUTIVE SUMMARY The new self-service customer portal, MyCPAU, fully launched in April 2020 and is available to all residential and commercial Utilities customers. MyCPAU is a convenient and secure way for customers to view and pay their utility bill, display monthly consumption and charges, browse energy efficiency tips, and much more. The new portal is a significant step in improving customer experience while also fulfilling many of staff’s objectives that includes providing a mobile optimized portal. Overall, MyCPAU has been well received with a 73% adoption rate. The new customer portal includes features that make navigating the site and completing transactions online much more intuitive. This report describes the new features of the portal, shares customer feedback, presents the business metrics comparing the legacy customer portal, MUA (My Utilities Account), to MyCPAU, and, lastly, previews the short and long -term enhancement roadmap for the platform. BACKGROUND MUA was the City’s first on-line payment offering, introduced in 2009 until it was decommissioned in 2020. MUA was well received by residents and offered utilities customers their first opportunity to pay their invoice online with a credit card or bank account. However , as customer expectations and City staff requirements grew over time, a new vendor and software was required in order to meet objectives. The project team’s objectives for the next generation online portal, MyCPAU, were to increase customer adoption and engagement, increase customer productivity and satisfaction, and automate internal processes while improving the efficiency of business workflow. In addition, staff also sought improvements in Staff: Kevin Enderby City of Palo Alto Page 2 security to offer customers the ability to store a credit card or enroll in recurring credit card payments. Strategic goals for the portal included an increase in registered users by 10% for the first year as well as an increase of 5% in the daily utilization of the portal. DISCUSSION MyCPAU’s new features, customer feedback, business metrics and short and long-term roadmap are discussed below. I. NEW FEATURES AND IMPROVEMENTS To develop the business requirements for the next generation customer portal, Utilities participated in several industry specific website assessments, obtained input from customers via a special survey, collaborated with other municipalities and utilities, and received feedback from critical front-office staff. Key features that customers have requested in the past are now available including setting up recurring credit card payments and updating mailing addresses. Customer are now able to track their usage and monthly utility expenditures through the interactive usage and graph modules. In addition, customers can download their energy and consumption data into a worksheet that they can access to do further analysis. Table 1 below summarize the features and improvements introduced with the implementation of MyCPAU. Although this is not an exhaustive list, MyCPAU offers these popular features and improvements: City of Palo Alto Page 3 • Fits any size to any device or screen and includes a modern look and feel The portal is designed to offer convenience and control to access utility information on any device (phone, tablet, computer) all while keeping things simple and user-friendly. Although a separate mobile app is not currently offered, accessing MyCPAU using a mobile phone or tablet is much easier than previously with MUA. • Enhanced Usage/Cost Graphs and Residential Tiered Usage The portal provides a dynamic view of graphs and charts that illustrate consumption and costs. Customers can hover (cursor) over a specific month on the graph to view the billing period, rate plan, and specific tiered consumption amount. This information is downloadable to a spreadsheet for up to thirty-six months. Residential tiered usage information (e.g. E-1, electric residential rate) is now available to show residents their monthly consumption. Displays of net generation and consumption data for solar electric Net Energy Metering (NEM) customers are also available. • Credit Card Payment Enhancements Based on customer requests, MyCPAU offers several new credit card payment features including: o Ability to enroll in recurring or automatic payment using a credit card • Flexibility to select the number of days to automatically pay in advance of the due date o Option to store one or multiple credit cards for future use o The ability to pay the utility bill using an American Express or Discover card o An option to “Pay without login” • Update Profile Information and Guest User Access MyCPAU offers the ability to maintain account information in real-time with direct updates to the Utilities Billing System, including: o Add and update primary and secondary email addresses o Add and update primary and alternate phone numbers o Add and update a billing address o “Paperless Bill” enrollment o Add and update home/business details o Select the email notification preference o Guest User Access ▪ A CPAU customer may invite a property management firm or an individual (e.g. spouse or family member) to oversee the daily operations of their utilities account. • Enhanced Security Features and Website Analytics MyCPAU improved security features include two-factor authentication via email at registration, enhanced username and password requirements, as well as, additional security measures provided by the vendor and payment processor for credit card payments. In addition, the portal provides City staff with reporting and analytics related dashboards of customer City of Palo Alto Page 4 interactions including the count of total logins, new registrations, paperless billing enrollments, “Contacts Us” requests, email notifications, and service requests (i.e. move-outs or stop service). Staff is also able to view detailed reports corresponding to the type of devi ces and browsers used, number of clicks by module and clicks by banner. II. MODULES The new portal is divided by menu options or modules. Table 2 below summarize the modules available to all customers after log-in. City of Palo Alto Page 5 Table 2 Module Name Description Home The Home (or Dashboard) page provides a quick glance of the customer’s utilities account using separate tiles for each module. These tiles are configurable and can be easily adjusted by the customer in any sequence. My Account Allows customers to view and update customer profile, home and payment information, manage multiple accounts, and set notification preferences. Billing Displays current and historical bills, pay bills online, and contact CPAU for billing inquiries. Usage Displays graphs and charges illustrating monthly consumption, costs, and rate schedule. City of Palo Alto Page 6 III. CUSTOMER FEEDBACK - STRENGTHS AND CHALLENGES For the past year, Utilities Customer Service staff have collected and compiled customer feedback, is summarized below by module: A. STRENGTHS • Home o Customers now have a dashboard with a quick view of their balance, usage graphs, and outstanding notifications. ▪ MUA defaulted to the payment screen and basic menu and did not provide an overview of the account. o Customers with multiple services addresses (or accounts) can be toggled from a drop-down menu at the top. ▪ In MUA, all accounts were displayed together, and the customer had to know each by the account number, as the service address was not displayed. • My Account o Customers can update their mailing address o Ability to select an address to be their default billing address o Guest User Access ▪ Property Management level ▪ Guest Level Limited accessibility • Billing City of Palo Alto Page 7 o Automatic credit card payments o Installment plans are now visible and payable o Budget Billing is displayed on the site is applicable o Notifications - Customer is able to enroll for email confirmation of their payment o Payment History (up to 36 months) o Shows amount paid and indicates type of payment (i.e. checking, credit card) o History can be exported to a spreadsheet • Usage o Graphs includes both consumption and costs for all three commodities – electricity, gas, and water. MUA had only basic charts of consumption with no dollar amounts. o Graphs are interactive – customers can hover over bars to see specific dates of bill periods as well as tiered usage information. o Graphs display 12 months of data, providing customers with a quick view of cost or consumption over time. o Customers can see monthly average and highest consumption and cost val ues. o Data for CPAU’s two types of solar customers (NEM 1 and NEM 2) are displayed clearly: NEM 1 solar customers can view net generation as well as net consumption data, and NEM 2 solar customers can view electricity import and export data. o 36 months of cost and consumption data can be exported to a spreadsheet. o Customers can navigate to rate information. • Outages o Proves link to outage maps, social media links and outage contact information • Notifications o Bill due, bill reminders, past due reminders, which were not available in MUA o Customers can opt-in or opt-out of receiving notifications • Efficiency o Customer can now view savings tips and rebates in one location. • CSR Admin Portal (Customer Service Representative Administrative Portal) o City staff can now reply to customer inquiries from the admin portal without having to log into the Utilities Billing System to respond. All information is in one spot. o Reporting and Analytics are now available. B. CHALLENGES The following is a list of constructive and helpful feedback from customers and staff: o Billing - Does not state in detail why a credit card payment is not accepted, can sometimes be difficult for a CSR to investigate. City of Palo Alto Page 8 o Billing - Customers can get confused if they are enrolled in auto pay as soon as they enroll and must refresh to view if they are actually enrolled. o Mobile and Tablet - Users have stated it is not as friendly as using the desktop version. o Billing - Customers can no longer make a single payment for multiple accounts; instead they must make them individually. Staff plans to send out a survey in FY 2022 to obtain additional feedback from customers. In addition, staff will review customer challenges and will work with the vendor to determine improvements that can be made to incorporate feedback. IV. METRICS Program objectives and goals for MyCPAU are monitored and evaluated using business metrics and KPIs (Key Performance Indicators). Table 3 below summarize the metrics tracked comparing MUA (January/February 2020) to MyCPAU (January/February 2021): Table 3 Customer Portal – Metrics MUA (legacy) MyCPAU Diff. 1. Registered Users Utilities Accounts Registered 19,000 22,218 3,218 -Residential n/a 86% - -Commercial and other classes n/a 14% - - % of Total Utilities Accounts 62% 73% - 2. Payments (per month) One-Time – ACH 1,266 1,214 -52 One-Time - Credit Card 5,197 3,648 -1,549 Recurring - ACH 7,354 6,673 -681 Recurring - Credit Card n/a 2,973 2,973 Total Online Payments 13,817 14,508 691 3. Notifications - emails (per month) Monthly Invoice -"Your Bill is Ready to View" 6,749 22,346 15,597 Payment Reminders and Past Due n/a 7,002 7,002 Payments Received/Declined n/a 8,473 8,473 4. Enrollments (per month) Paperless Billing n/a 171 171 Total Accounts on Paperless Billing (email only) 4,489 6,251 39% 5. Customer Service Correspondence (emails per month) Customer Inquiries Received/Sent n/a 350 6. Services (per month) City of Palo Alto Page 9 Move-Outs / Turn-off Service 74 102 28 7. Traffic (per day) Number of Unique Customer Logins n/a 510 - 8. Customer Engagement a. Clicks by Module (per month) Billing n/a 6,065 - MyAccount n/a 1,483 - Usage n/a 706 - Connect-Me n/a 203 - Service n/a 191 - Notifications n/a 97 - Efficiency n/a 71 - Total Customer Clicks n/a 8,816 - b. Clicks by Banner (per month) Usage ("Obtain Your Rate Details") n/a 175 - Dashboard ("Paperless Bill") n/a 65 - My Account ("Paperless Bill") n/a 35 - Billing ("Payment Methods") n/a 24 - Total Customer Clicks n/a 299 - City staff interpret these metrics below: 1) Registered Users MyCPAU has been well received with 73% of all accounts currently enrolled. This is an increase in adoption of 17% year-over-year when comparing MyCPAU (22,218) to MUA (19,000). This has exceeded staff’s strategic goal to increase customer adoption (or portal registrations) by 10% per year. In addition, a majority of users are residential customers at 86% of the registered accounts, versus commercial customers at 14%. 2) Payments There was a slight increase in customers making their payment via the customer portal with the total number of monthly online payments increasing by 691 payments , or 5%. In addition, with the introduction of the recurring credit card option (or automatic payments), a shift in customer preference occurred from making one-time credit card and recurring ACH payments in MUA, to recurring credit card payments in MyCPAU. As a result, CPAU credit card payment fees (or City expenses) have increased by 35%. Staff will continue to monitor and evaluate options to reduce the fees incurred, for example, by lowering the maximum credit card payment amount per month. 3) Notifications - emails alerts The MyCPAU portal emails approximately 22,000 bills, payment received, and reminder emails per month including “Your bill is ready to view,” “Your bill is due in X days,” and City of Palo Alto Page 10 “Your payment has posted.” The enhanced notifications options have improved the look and feel of the notices, introduced new notification types, and allow staff to edit content on demand. Example, special COVID-19 messages were added to notifications last year. 4) Enrollments From January 2020 to January 2021, there was an increase of 1,762 accounts or a 39% increase in Paperless Billing enrollments. This has greatly exceeded staff’s strategic goal of 10% per year. Staff will continue to promote paperless billing since it will reduce printing and mailing costs. 5) Customer Service Correspondence MyCPAU provides a customer notification inbox to easily submit and track correspondence with City staff for online assistance with billing, usage, and customer inquiries (i.e. high bill). This new feature has been popular with customers and provides a convenient method at any hour to communicate with staff. Utilities Customer Service staff receive and process approximately 350 inquires a month. 6) Services Customers increased their adoption of the move-out (stop service) option in MyCPAU by 38% per month or 28 additional move-outs per month. This exceeds staff’s strategic goal of increasing the use of the move-out feature by 5% per year. In addition, the move-outs submitted via the portal automatically initiates the final meter read wor k order request in the billing system as well as adds the new forwarding address. This saves staff the manual efforts to enter this information into the system. 7) Traffic As discussed earlier in this update report, MyCPAU introduced new website analytics that allows staff to track the daily usage of the portal. According to these analytics, there are an average of 510 unique users that visit the site on average per day. Now that this metric is available, Staff will be able to benchmark and gauge daily usage of the site and determine methods to improve online adoption. 8) Customer Engagement a. Number of “Clicks by Module” – The most popular modules in the portal are the Billing, My Account, and Usage modules. This appears to be in line with staff assumptions as customers visit the site to conduct such business as view/pay bills, view/change their phone number, email, billing address, or enroll in paperless billing and view their consumption. b. Number of “Clicks by Banner”- The most popular banners are on the Usage, Home (Dashboard), and My Account modules relating to finding usage details and enrolling in paperless billing. City of Palo Alto Page 11 V. NEXT STEPS: SUMMARY OF THE ROAD MAP AHEAD – SHORT AND LONG TERM The City of Palo Alto Utilities (CPAU) is dedicated to improving the f unctionality of the MyCPAU online portal as part of its goal to make utility information readily available to customers so that they can make informed decisions on their own utility costs, energy savings and climate reduction efforts. CPAU is committed to engaging with its residents, businesses, and technology experts to enhance the online portal to deliver more value for all customers. Numerous enhancements are being developed into both short- and long-term schedules in order to achieve maximum benefits. A number of these enhancements are underway and include the following: A. SHORT-TERM (1 year to 18 months) • WaterSmart - Provides customers with additional water analytics and comparison reports. • Clean Power Research - Provides customers interested in learning more about solar and electric vehicles with solar and EV calculator tools. • Based on feedback, staff plans to address the challenges customers are currently experiencing since the portal’s launch (e.g. add communication or make more intuitive where needed) • Add a notification banner across the top of the log -in and post-login pages. This is to be used to alert customers of important information such as emergency situations (e.g. wildfires or Covid-19), outage information, fraud alerts, portal instructions, or one-time messages to reduce customer calls into the call center (e.g. call center/phones are down or invoices will be delayed one day) • Evaluate options to reduce credit card fees, for example, by instituting a maximum monthly credit card amount. B. LONG-TERM (2 to 3 years) • An option for text alerts for high bill notification (tentative) • Coordination with the Outage Management System (OMS) to improve delivery of email notifications (tentative) • Integration with the future AMI (Advanced Metering Infr astructure) system to provide customers with hourly interval usage data and water leak alerts • Upgrade to the latest version of the vendor’s portal software and explore the need for a separate mobile application • Electronic bill presentment in financial inst itutions City of Palo Alto Page 12 Resource Impact For short-term enhancements, staff estimates the cost to implement will range between $85,000 and $100,000. Staff does not currently have an estimate for long-term enhancements and will have to develop statement of works and contact multiple vendors for future integration and service offerings. Please note should staff elect to institute a maximum monthly credit card amount in MyCPAU, a net savings of $250,000 annually is estimated from $600,000 per year to $350,000 in annual credit card fees. Stakeholder Engagement The online MyCPAU customer account management system was presented to the UAC on March 6, 2019 (https://cityofpaloalto.org/civicax/filebank/documents/69599). CPAU received input from Utility industry consultants, E Source; survey results from 1,200 CPAU customers; and system requirements from multiple divisions in Utilities including Customer Support, Billing and Utilities Program Services. Environmental Review The UAC’s review of this update is not a Project requiring California Environmental Quality Act review, as an administrative governmental activity which will not cause a direct or indirect physical change in the environment, under 14 CCR Section 15378(b)(5). Attachments: • Attachment A - Presentation MyCPAU Customer Portal June 2, 2021 1 Attachment A A c1Tv OF WPALO ALTO •MyCPAU Objectives •New Features and Improvements •Customer Dashboard and Modules •Key Performance Metrics •Roadmap Outline 2 A c1Tv OF WPALO ALTO •Increase customer engagement –New functionality and features, new modern screens •Increase customer satisfaction, productivity, and convenience –Mobile experience, single sign-on, fewer clicks… •Reduce incoming phone calls by offering new services and information online •Improved security features •Encourage energy efficiency and conservation by adding new online tools MyCPAU Objectives 3 A c1Tv OF WPALO ALTO Customer Portal -Improvements 4 ✓Fits and sizes to any device ✓Modern Look and Feel ✓ Alert Email Notifications ✓website Analytics ✓Enhanced security features ✓scalable (add future functionality) ✓Residential Tiered Usage Data ✓Enhanced Usage and Cost Charts ✓Recurring credit card option ✓usage export to Excel (36 months) ✓ Guest User Access ✓Energy Efficiency Tips A c1Tv OF WPALO ALTO ✓improved e-billing ✓ AMEX and Discover ✓update Profile real-time (e.g. email, phone, address) ✓store a credit card ✓social Media Links ✓pay without login (Desktop view) New nline Customer Portal -ImprovementsCustomer Dashboard and Modules 5 • C!T V OF PALO ALTO UTILITIES Good Alte,noon HOME MY ACCOUNT BI LLING USAGE OUTAGES NOTIFICATIONS CONTACT US MOVE OUT EFFICIENCY @ Billing Q t!' t!' rj) $91 .68 Total Payment Due 04/07/2021 Due O..te Notifications BIK1r>g Qucn.,,,, Servic~ Coo1actUs View View View J1 MyAccounl G Usage Monthly 900 AlrHE·M-600 <!) Outages 300 0 I I ■ -300 t~ Efficiency @M:M I I I ) FAQs ) Contact U, ) Terms & Conditions ) Privacy Policy ® Sign Out Elo,ctn< V Wh I 6 REGISTERED ACCOUNTS: 22,218 OR 73% ONLINE PAYMENTS: 14,508 OR 51% BILL NOTIFICATIONS: 22,346 MONTHLY PAPERLESS BILLING: 6,251 MONTHLY (39% INCREASE) SELF MOVE-OUTS: 102 MONTHLY OR 32% Key Performance Metrics 7 Road Map •Water analytics and comparison report •Solar and EV calculator •Maximum monthly credit card payment Short-Term (12 –18 months) •AMI hourly interval data and water leak notifications •Notifications via text •Outage notifications •Electronic bill presentment (i.e. Bill Pay/ebill) in financial institutions Long-Term (24 –36 months) A c1Tv OF WPALO ALTO •Questions •Suggestions •Thoughts and Ideas Discussion 8 A c1Tv OF WPALO ALTO City of Palo Alto (ID # 12306) Utilities Advisory Commission Staff Report Report Type: New Business Meeting Date: 6/2/2021 City of Palo Alto Page 1 Summary Title: Survey Overview Title: Discussion and Overview of the 2021 City Survey From: City Manager Lead Department: Utilities Background Palo Alto has been surveying residents since the first survey in 2003. The survey report shares the survey results with some historical comparison. As described in the City Council report of May 17, 2021, the survey was conducted starting on December 21, 2020 and responses were collected over seven weeks. Selecting Survey Recipients “Sampling” refers to the method by which households were chosen to receive the survey. All households within the City of Palo Alto were eligible to participate in the survey. A list of all households within the zip codes serving Palo Alto was purchased from Go-Dog Direct based on updated listings from the United States Postal Service. Since some of the zip codes that serve Palo Alto households may also serve addresses that lie outside of the community, the exact geographic location of each housing unit was compared to community boundaries using the most current municipal boundary file (updated on a quarterly basis) and addresses located outside of Palo Alto boundaries were removed from consideration. Each address identified as being within City boundaries was further identified as being l ocated in North or South Palo Alto, and within one of six areas. To choose the 3,600 survey recipients, a systematic sampling method was applied to the list of households previously screened for geographic location. Systematic sampling is a procedure whereby a complete list of all possible households is culled, selecting every Nth one, giving each eligible household a known probability of selection, until the appropriate number of households is selected. Multi -family housing units were selected at a higher rate as residents of this type of housing typically respond at lower rates to surveys than do those in single-family housing units. Executive Summary Ratings for some utility-related aspects have improved since 2018. Out of the 3,600 citizens the survey was sent to, 768 responded and about 9 in 10 of those residents gave positive marks to Staff: Dean Batchelor; Dave Yuan City of Palo Alto Page 2 the reliability of utility services in Palo Alto and 8 in 10 or more awarded favorable scores to: the community value received from the City owning and operating its o wn municipal utility services, utilities online customer self-service features, providing opportunities for energy and water efficiency at home or business, value of Palo Alto Utilities’ customer communications, ease of contacting Utilities department staff, and speed of response after contacting Utilities department staff. Five of the 11 individual aspects of utility services included in this question saw improved ratings from 2018 to 2021; the remaining 6 aspects were similar to the previous survey results. Further, more than 8 in 10 residents gave positive marks to utility payment options, drinking water, and storm water management (the latter rating also increased from 2018 to 2021). Attachments: • Attachment A: Presentation 2021 Community SurveyAttachment A Survey Background & Methods •Mailed to 3,600 households •768 completed (22%) •530 completed online •±4% margin of error •Weighted to reflect community •Results compared by geography, by gender, and by race/ethnicity 2Prepared by Polco/NRC What one change would make you happier? 3 82% 80% 19% made a comment related to housing (amount, type, affordability/cost of living) #1 most frequently-mentioned topic area Ratings for some utility- related aspects have improved since 2018. I lt•I r •• ,.. .. , • . . . ,,. .. ' Alternative Transportation 5 34% of respondents used public transportation in past 12 months = higher than benchmark Residents in 2021 were more likely than in 2018 to: •describe walking and biking as convenient modes of transportation •Plan to purchase an electric car in the next two years Utility Ratings 6 82% 80% Reliability of utility services Utilities online customer self-service features Value received from City owning/operating own utility services Ease of contacting Utilities department staff Speed of response after contacting Utilities dept. staff Value of Palo Alto Utilities’ customer communications Providing opportunities for energy/water efficiency at home/business 93% 86% 84% 84% 83% 80% 80% lJ lJ lJ Benchmark Utility Ratings 7 82% 80% Drinking water Sewer services Utility payment options Gas utility Electric utility 88%87%86% 78%77% = higher than benchmark* How are survey results used? 8 Monitor trends in resident opinion Measure government performance Inform budget, land use, strategic planning decisions Benchmark service ratings Prepared by National Research Center, Inc. City of Palo Alto (ID # 12099) Utilities Advisory Commission Staff Report Report Type: New Business Meeting Date: 6/2/2021 City of Palo Alto Page 1 Summary Title: Utilities Quarterly Report for Q1&2 FY21 (Info) Title: Informational Update on the Utilities Quarterly Report for Q1&2 of FY 2021 From: City Manager Lead Department: Utilities Recommendation This report is for information only. No action is required. Executive Summary This is an update on water, gas, electric, wastewater collection and fiber utilities, efficiency programs, legislative/regulatory issues, utility-related capital improvement programs, operations reliability impact measures and a utility financial summary, and is for the City Council’s information. This update Attachment A (Linked Report) has been prepared to keep the Council and Utilities Advisory Commission apprised of the major issues that are facing the water, gas, electric, wastewater collection and fiber utilities. Items of special interest for Q1 and Q2 FY 2021 include: •COVID-19 Impacts: The COVID-19 shelter in place order affected utility loads in Q1 and Q2 of FY 2020: o Electric utility loads for CY 2020 were 7% to 10% below the average of CY 2018 and CY 2019 loads. Lower electric loads were accounted for in FY 2021 and FY 2022 financial forecasts. (page 6) o Gas utility loads for CY 2020 were as much as 18% below the average of CY 2018 and CY 2019 sales in April of 2020 and continued to be low through the summer. But by December 2020 loads had returned to normal levels. (page 9) o Water loads (demands) for CY 2020 roughly matched the average of CY 2018 and CY 2019 sales. (page 14) o Q1 and Q2 Wastewater sales revenues were nearly 5% lower than projected in the FY 2021 Financial Plan. This reflects lower sales revenue from the commercial sector. These sales declines have been accounted for in the FY 2022 Financial Plan forecast. (page 28) Staff: Eric Wong CITY OF PALO ALTO City of Palo Alto Page 2 • Electric Utility: As of the end of Q2 FY 2021 the electric utility reserves are forecasted to decline by $6.3 million by end of FY 2021. This is compared to the reserve forecast decline of $4.0 million projected in the FY 2021 Financial Plan. While retail sales are higher than forecasted, and wholesale sales revenue is also higher than forecasted due to the REC exchange program, this is offset by increased expenses from low hydroelectric supply, increased administrative expenses, and increased spending on electric vehicle programs. Precipitation has been roughly 50% of average for the year in the watersheds associated with the City’s hydroelectric projects, so hydroelectric generation in calendar year 2021 will be lower than average. However, these effects will be felt more in FY 202 2 than in FY 2021, and are taken into account in the forecast. (See pages 3, 25-26, 28) • Gas Utility: Gas supply prices were higher than forecasted in November and December of 2021, and are expected to be above forecasts through the end of the fiscal year . These cost increases are passed through to customers through a variable gas commodity rate that adjusts monthly, but are offset in part by a discounted gas agreement that has reduced customer gas supply costs by about $354,000 through Q2 FY 2021. Aside from these commodity cost increases, gas utility costs are roughly in line with the FY 2021 Financial Forecast (See pages 9-11, 26, 28) • Water Utility: Precipitation has been low in California in the 2020-2021 water year. Total storage in the Hetch Hetchy system was 83% full as of March 29, 2021. Precipitation is roughly 50% of average, though snowpack was more favorable. Water consumption and costs for FY 2021 are forecasted to be roughly 5% higher than forecasted in the FY 2021 Financial Plan because forecasted sales decreases from the pandemic shelter in place orders have not materialized. The small commercial sector saw some declines, but water use did not decline for residential use and commercial irrigation. However, the cost and revenue impacts from higher sales have been offset by declines in other revenues, including interest income, and cost savings due to delays in a project to install additional backup generators at water pumping stations. As a result, costs and revenues roughly align with the FY 2021 Financial Forecast. (See pages 11-14, 26-27, 28) • Wastewater Utility: The Wastewater Collection Utility is projected to realize a $2.9 million surplus rather than $200,000 loss, as projected in the FY 2021 Financial Plan. Sales are lower due to lower non-residential sewer charges (these are based on non-residential water use, so decreases in water consumption can lead to decreases in sewer revenues). However, costs were significantly lower due to one-time treatment cost reductions and collection system CIP deferrals. These surplus funds are expected to be expended on deferred CIP. (See pages 27, 28) • Fiber Utility: Magellan Advisors has been hired to perform a four -phase Fiber Network Expansion assessment. In Q4 2020, work commenced on phase one of a high -level design to support internal City services including Advanced Metering Infrastructure (AMI), Supervisory Control and Data Acquisition (SCADA) Systems, and wireless communication. Phase three of the project to develop a fiber-to-the-home (FTTH) business case and high- level design was accelerated and is being worked on in parallel with phase one tasks. Preliminary findings and recommendations of the fiber network expansion and FTTH business case were made available to the Utilities Advisory Commission on April 21, 2021. City of Palo Alto Page 3 Fiber utility revenue for FY 2021 is projected to be $430,000 (7%) lower than forecasted in the FY 2021 Financial Plan due to the impact of business closures related to the economic impacts of the pandemic. Fiber capital expenses are projected to be $900,000 lower than expected, primarily due to delays in the Fiber Optic System Rebuild, which is on hold pending the results of the Fiber to the Home study. As a result, the Fiber Optic Utility’s net position is expected to increase, with a total of $34.7 million in reserves expected at year- end. (See pages 27, 28) • Customer Programs: The report contains descriptions of efficiency programs (pages 16 -17), innovation programs (page 19), and sustainability programs (pages 20 -25). Many energy efficiency programs were suspended due to shelter in place orders. Programs that can be executed outdoors or on commercial properties in compliance with County health orders have been restarted, but programs that require entering residences remain suspended. In the meantime CPAU is providing tips and tricks electronically to residents and business es on reducing energy and water use while sheltering in place or during a suspension of business. CPAU has also launched a virtual program delivery option for its Home Efficiency Genie service, and recently expanded it to low-income customers. The City also continues to promote its multi-family and workplace EV charger programs, which are summarized on pages 22-24. • Communications: A digest of major outreach efforts is provided on pages 17-18, including outreach related to building and vehicle electrification and water conservation. • Legislative and Regulatory: Major legislative and regulatory items are summarized on pages 25-26, with a more detailed list of potential bills in Attachment B (Linked Document). Attachments: • Attachment A: Quarterly Report for Q1 and Q2 • Attachment B: Bill Sample Utilities Quarterly Update First & Second Quarters of Fiscal Year 2021 June 2021 Attachment A Quarterly Update for First & Second Quarters of FY 2021 June 2021 i Utilities Quarterly Update Table of Contents i. Electricity ................................................................................................................... 3 Electric Supplies ............................................................................................................................................ 3 Electric Budget and Portfolio Performance .................................................................................................. 7 ii. Natural Gas................................................................................................................. 9 Gas Supply ..................................................................................................................................................... 9 Gas Budget and Portfolio Performance ...................................................................................................... 10 iii. Water ....................................................................................................................... 11 Water Availability ........................................................................................................................................ 11 Water Use ................................................................................................................................................... 13 Water Budget and Portfolio Performance .................................................................................................. 14 iv. Fiber Optics .............................................................................................................. 15 Commercial Dark Fiber Service: .................................................................................................................. 15 Phased Fiber Optics Expansion: .................................................................................................................. 15 v. Efficiency Programs .................................................................................................. 16 Events and Workshops ................................................................................................................................ 17 vi. Communications Highlights ....................................................................................... 17 vii. Innovation and Pilot Programs .................................................................................. 19 Program for Emerging Technologies ........................................................................................................... 19 viii. Sustainability ............................................................................................................ 20 Electrification .............................................................................................................................................. 20 Electric Vehicles .......................................................................................................................................... 21 ix. Legislative and Regulatory Issues .............................................................................. 24 State legislation ........................................................................................................................................... 24 State regulatory proceedings ...................................................................................................................... 26 x. Utility Financial Summary ......................................................................................... 26 Electric Utility Overview .............................................................................................................................. 27 Gas Utility Overview.................................................................................................................................... 27 Wastewater Collection Utility Overview ..................................................................................................... 28 Fiber Optic Utility Overview ........................................................................................................................ 28 Residential Bill Comparisons ....................................................................................................................... 31 Quarterly Update for First & Second Quarters of FY 2021 June 2021 ii List of Figures Figure 1: Electric Supply Resource Actual and Projection, 2020 to 2022 ..................................................... 4 Figure 2: CY 2021 Monthly Electric Supply Resource Projection .................................................................. 5 Figure 3: Northern California Peak Electric Prices ........................................................................................ 6 Figure 4: CY 2020 Electric Load, compared with CY 2018-19 Average ......................................................... 6 Figure 5: FY 2021 Electric Load and Resource Balance ................................................................................. 7 Figure 6: FY 2021 Electric Market Prices ....................................................................................................... 8 Figure 7: CY 2020 Gas Usage, compared with CY 2018-19 Average ............................................................. 9 Figure 8: CPAU’s Gas Commodity Rates ...................................................................................................... 9 Figure 9: FY 2020 Natural Gas Volumes and Costs .................................................................................... 10 Figure 10: FY 2020 Natural Gas Prices ........................................................................................................ 11 Figure 11: California Drought Monitor ....................................................................................................... 11 Figure 12: Hetch Hetchy Snowpack ............................................................................................................ 12 Figure 13: SFPUC Water Deliveries ............................................................................................................. 13 Figure 14: Potable Water Use ..................................................................................................................... 13 Figure 15: CY 2020 Water Usage, compared with CY 2018-19 Average ..................................................... 14 Figure 16: FY 2020 Water Volumes and Costs ............................................................................................ 14 Figure 17: History of LCFS Credits Earned Per Quarter ............................................................................... 21 List of Tables Table 1: FY 2021 Electric Load and Generation Compared to Budget Projections ....................................... 7 Table 2: FY 2021 Electric Utility Supply Cost Summary ................................................................................ 8 Table 3: Status to date of all applications to the Program for Emerging Technologies ............................. 19 Table 4: Notable EV Charger Projects Completed ...................................................................................... 22 Table 5: Utilities Financials, FY 2021 Projections ........................................................................................ 30 Table 6: Operations Reserves, FY 2021 Q2 ................................................................................................. 30 Table 7: Residential Electric Bill Comparison .............................................................................................. 31 Table 8: Residential Natural Gas Bill Comparison ....................................................................................... 31 Table 9: Residential Water Bill Comparison ................................................................................................ 31 Table 10: Residential Wastewater Collection (Sewer) Bill Comparison ..................................................... 31 Table 11: Median Residential Overall Bill Comparison ............................................................................... 32 Table 12: FY 2021 Q1&2 Reserve Report from the City’s Financial System ............................................... 33 Quarterly Update for First & Second Quarters of FY 2021 June 2021 3 i. Electricity Electric Supplies Western Area Power Administration (Western) Issues Water year 2021 1 is shaping up to be the state’s second consecutive dry year, with significantly below-average precipitation levels (with cumulative precipitation at 50% of average for April 29). For Q1 of FY 2021, Western delivered 121 GWh to the City (82% of long-term average levels, which is about 88% of the amount that was delivered in Q1 of FY 2020). For Q2 of FY 2021, Western delivered 33 GWh to the City (75% of long-term average levels, which is about 48% the amount that was delivered in Q2 of FY 2020). Based on the April 2021 WAPA forecast, Western is projected to generate a total of 285 GWh (71% of long-term average supply levels, and 72% of FY 2020 levels) in FY 2021. Calaveras Hydroelectric Project Issues New Spicer Meadow Reservoir (NSMR) storage as of February 28, 2021 was 64,116 ac-ft. The historical average storage level for NSMR for the end of February is 75,340 ac-ft. Water year 2021 has been dry so far, with cumulative precipitation currently at about 51% of average for this date, tracking just above the levels of 2015 (a serious drought year). For Q1 FY 2021, the Calaveras project generated 17 GWh (44% of long-term average levels, which is about 48% of the amount that was delivered in Q1 of FY 2020). For Q2 FY 2021, the Calaveras project generated 9 GWh (55% of long-term average levels, which is about 47% of the amount that was delivered in Q2 of FY 2020). Based on the March 2021 forecast, for FY 2021 as a whole, Calaveras is projected to generate 62 GWh (53% of long-term average levels, and 60% of FY 2020 supply levels). Electric Load and Resource Balance Palo Alto’s electric supply portfolio for CY 2020 saw significant surplus energy positions in some periods, largely owing to the previous year being an above-average hydro year. However, there were other periods that saw deficit positions as well. The City sold, on a forward basis, nearly 58 GWh of surplus energy during Q1 of FY 2021 (Jul 2020 – Sep 2020) to manage the surplus position, while it purchased about 60 GWh in Q2 of FY 2021 (Oct 2020 – Dec 2020) to manage the deficit position. The City also purchased, on a forward basis, about 35 GWh of surplus energy during Q3 of FY 2021 (Jan 2021 – Mar 2021) to manage the deficit position. In addition, due to the availability of surplus carbon neutral supplies, as well as the updated Carbon Neutral Plan that was approved by Palo Alto City Council in August 2020, the City is authorized to sell all Bucket 1 RECs exceeding the amount required to comply with the City's RPS requirements, and to replace them with Bucket 3 REC purchases. Accordingly, the City sold Bucket 1 RPS resources and purchased Bucket 3 RECs in Q1- Q2 of FY 2021. While this plan causes the City’s RPS levels to decrease, the City still remains in compliance with 1 A “water year” is defined as the 12-month period from October 1 through September 30. “Water year 2021” refers to the period from October 1, 2020 through September 30, 2021. Quarterly Update for First & Second Quarters of FY 2021 June 2021 4 its RPS requirements. RPS compliance is based on aggregate RPS procurement over the entire compliance period (2017-2020), which ensures that the City is still in compliance with the state RPS requirements. Also, since these transactions were index-based (plus a REC premium), they did not impact the City’s energy price exposure (and are therefore not reflected in the load-resource balance charts shown in Figure 1 and Figure 2 below). CY 2021 has been a second consecutive dry year after CY 2020. The overall electric supply resources are 15% deficit to load in CY 2021 including forward market transactions (and 2% deficit to load excluding forward market transactions). The overall electric supply resources are projected to be equal to load for CY 2022. Figure 2 below shows the monthly load and resource balance for CY 2021. As mentioned earlier, some of the monthly surplus/deficit positions were sold/purchased as generic energy ahead of time, while the rest were settled in the spot market through the California Independent System Operator. Figure 1: Electric Supply Resource Actual and Projection, 2020 to 2022 (as of April 14, 2021) 19' S\lrph,1,s 15% Di!!ftat o,ti:Jl t1rn lus IZl Net Pl:a,nned 1,200 Mar~et Transaction, 1.000 □ Net Committed Marltiet Tran5 att1Qll'l s 800 So >ar 600 j ■Wind "' ~00 ,111 ~ i;: II; II Landfill G a:s: "' 200 0 □cal avera~ •100 ■West,ern -400 i020 2021 2i022 cal~ncl!ar 'fear Quarterly Update for First & Second Quarters of FY 2021 June 2021 5 Figure 2: CY 2021 Monthly Electric Supply Resource Projection (as of April 14, 2021) Electric Market Price History and Projections As of March 31, 2021, the price for on-peak energy for April 2021 in Northern California was $32.33 per megawatt-hour (MWh)2, while the prices for May and June 2021 were $31.44/MWh and $44.70/MWh, respectively. These values are between 12% - 24% higher than they were at the time of the last quarterly report3 and between 18% - 31% higher than they were at the time of budget. On-peak prices for calendar year strips are about $56.25/MWh for 2021, reducing to about $36/MWh for 2027 and onward. The on-peak strip price for 2021 is approximately $13.85/MWh (33%) higher than it was at the time of the last quarterly report, and $15.73/MWh (39%) higher than it was at the time of budget. Also, the on-peak strip prices are 10% higher on average for the 2022-2027 time period than they were at the time of the last quarterly report, and 15% higher on average for the same time period, compared to what they were at the time of budget. Figure 3 below illustrates historical monthly on-peak prices and projected monthly forward prices for Northern California from 2006 through 2026. 2 Note that $32.33 per megawatt-hour is equal to 3.233 cents per kilowatt-hour. 3 Market prices for the previous quarterly report were from November 24, 2020. ~ i .140 ---------------------------------------....... no +-------------------------------- 100 +-----------~ 80 60 ~ 20 0 -20 -«I E.l Net Pia ,rmed Market Transact ion$ □ Net Comm itted Market ransact ions Snlar -'60 ....._ ______________________________________ ____. Quarterly Update for First & Second Quarters of FY 2021 June 2021 6 Figure 3: Northern California Peak Electric Prices (as of March 31, 2021) Covid-19 Impact on Electric Load Figure 4 below shows the difference between electric load in CY 2020, compared with CY 2018-19 average. During the start of the Covid-19 in April 2020, electric load was about 10% below CY 2018-19 average, but the difference had slightly shrunk to about 7% in Q3 and Q4 of CY 2020. Figure 4: CY 2020 Electric Load, compared with CY 2018-19 Average $160 ...... ------------------------.....---------- $140 $120 HI isto.ri ca I +---+-+ Projected $0 --..-----------------....... -----------.~·-----..---....--# #,, ~ ~ # ~ ~ # ~ ~ ~ ~ # ~ # ~ ~, ~ 'V '\: -i.:·-v '\: ·1,; 'VT'\: 'V ~ 'V· ri; '\: 'V '):',:'VT 'V 'V 80K 60K MWh 40K 20K OK ::,.,. ... Ill :::J C Ill -, ::,.,. ..c ... u Ill ... :::J Ill ... ~ .n ii} LL Mont h ::,.,. 41 ::,.,. i: 113 C (l_ ~ :::J :::J -=.r -. -. ■ Ele ctric , 202 0 Ele ctric , 20 8-1 9 Av e rage .µ ... ... ... ... u, 41 41 41 41 :::J ..[l ..[l ..[l .Ll Ol E 0 E E :::J tl -=i 41 41 ii} .µ 0 ;;,, u 0. D ii} 41 LEI z 0 Quarterly Update for First & Second Quarters of FY 2021 June 2021 7 Electric Budget and Portfolio Performance Electric Load, Generation, and Supply Cost Summary Compared to Budget Estimates Table 1 and Figure 5 below summarize the City’s electric supply sources through Q2 FY 2021. Load was about 7.2% above forecast. Hydro generation from Calaveras and Western combined were 19.3% above forecast, wind generation was 2.8% above forecast and solar generation was 1% below forecast. Net market purchases through Q2 FY 2021 were roughly 1 GWh above forecasts. Table 1: FY 2021 Electric Load and Generation Compared to Budget Projections, MWh (up to Q2) Figure 5: FY 2021 Electric Load and Resource Balance, MWh (up to Q2) Bu d get Actua l Vo l Va riance Spot Ma r ket 7,748 8,797 1,050 forward Market 1,725 1,725 0 Solar 144,662 143,180 -1,483 Wind 54,139 55,681 1,541 Calaveras 27,335 25,654 -1 ,681 West ern 123,464 154,188 30,724 landfil l 52,182 51,596 -586 Total 411,255 440,820 29,565 -='(2021 _QOK SOK OK -50K Ju l Aug Se Oct Vol Var iance% 13.5% 400K 0.0% -1 .0 % 300K 2.8% 200K -6 .2 % 24.9% '.!.00K -1.1% OK 7.2% Nov ec FY 202'.!. Reso urces ■ Spo Mark et ■ Fo rw a r d Ma r et Sola r Win. ■ Ca la ve ras ■ Western ■ La ndfi ll Budget Actual Reso u r ces ■ Spo-M arket ■ Fo rwa r d M a r et So lla r ■Win ■ Ca l av e r as ■ Wester ■ Land il l ■ Pa lo Alt o oa d Quarterly Update for First & Second Quarters of FY 2021 June 2021 8 Table 2 below shows CPAU’s supply cost by cost category through Q2 FY 2021. Supply costs were 7% below budget, primarily due to lower market purchase costs of energy and capacity and higher market sales of energy. Western costs were also lower due to reduction in Restoration Fund costs. Table 2: FY 2021 Electric Utility Supply Cost Summary (up to Q2) Electric Market Prices Figure 6 shows monthly market prices. Electric market prices have been slightly higher than budgeted through Q2 FY 2021. Figure 6: FY 2021 Electric Market Prices (up to Q2) ~"'''' Actu al Var ia n ce Varia n ce so.I Description % -y 2021 Western 5,259 4,817 -442 -8% Re e w a b le Re n e w able 18,034 17,936 -97 -1% ■ EMA Pu r ch as.e s EMA Sales -2,263 -2,263 0 0% 40K ■ NC PA Servi ces EMA Pu r chases 4,038 2,416 -1,622 -40% ■ NC PA Pooling ■ Contr a Surplus Ene r g y Co st Su rp lus Energy Re venue -1,281 -3,121 -1,840 144% 30K ■ TANC & Ca lav e r a s O&M Loca l Capacity Sa les -3,339 -3,243 96 -3% Tr a n s mis.s ion a n.d Ot h er Ene r g y ■ Lo cal Capacity Pu r e ases 20K l ocal Capacity Purch ases 1,989 750 -1,239 -62% ■ De bt S ervic e NCPA Servic es 1,171 1,220 so 4% ■ Surplu s En ergy Re ve nu e 10K EMA Sal es NCPA Po o ling 972 1,621 648 67% Local Capa cit y Sa les TA NC & Cala ve r as O&M 2,51.9 2,015 -503 -20% OK ■ Surplus En er g y Cost ■ RECSa les Trans m is s ion a nd Othe r Energy 10,292 1.2,034 1,741 17% Debt Servic e 3,981 3,981 0 0% -lOK REC Sa les -1,588 -1,016 572 -36% I Budge Tot al 39,784 37,147 -2,637 -7% A ctu a l 2021 so -.E: I ~ 3-0 ..!.! L a_ .., .Y. 20 11:. ~ 10 ■ Bu get al (CAISO L -d A gg r egatio Point} 0 j I Aug Sep Oct o v Dec Quarterly Update for First & Second Quarters of FY 2021 June 2021 9 ii. Natural Gas Gas Supply Covid-19 Impact on Gas Usage Figure 7 below shows the difference between gas usage in CY 2020, compared with CY 2018-19 average. During the start of the Covid-19 in April 2020, gas usage was about 18% below CY 2018-19 average, but the difference had reduced in Q3 CY 2020 and recovered to normal levels during the winter season of Q4 CY 2020. Figure 7: CY 2020 Gas Usage, compared with CY 2018-19 Average Gas Supply Retail Rates The commodity portion of CPAU’s retail gas rates for all customers varies every month depending on the market price of natural gas. Figure 8 below shows the actual commodity rates charged from FY 2013 through Q3 FY 2021. Gas commodity prices in FY 2021 have slightly increased compared with FY 2020. Figure 8: CPAU’s Gas Commodity Rates—FY 2014 through Q3 FY 2021 These rates can also be found on the web at: http://www.cityofpaloalto.org/civicax/filebank/documents/30399. Month Gas ,2020 Gas , 2018-19' Ave r age 3M The r s 2M M 0~ '.>, '.>, ..c '.>, a, :,., .µ ... ... ... ... ... ... u .:: 113 C u, a, a, a, a, 113 113 ... u. 2c :::J 3 :::J _o _o _o .0 :::J :::J 113 -=.I -. ....... a, E 0 E E C ... 2: :::J ~ 113 .0 •::;[ a, a, a, a, .µ 0 :;. u ....., C. 0 a, LL a, z 0 Lfl $0.80 $0.60 § { $0.40 - $0.20 $0.00 FY 20::..4 FY 20 5 FY 2016 FY 2017 FY 2018 FY 20::..9 FY 2020 FY 202_ Quarterly Update for First & Second Quarters of FY 2021 June 2021 10 Muni Gas Prepay On September 15, 2014, Council adopted Resolution #9451 authorizing the City’s participation in a natural gas purchase from Municipal Gas Acquisition and Supply Corporation (MuniGas) for the City’s entire retail gas load for a period of at least 10 years. The MuniGas transaction includes a mechanism for municipal utilities to utilize their tax-exempt status to achieve a discount on the market price of gas. The program has cumulatively reduced about $354K in commodity costs for customers through Q2 of FY 2021. Value of CPAU’s Share of Redwood Pipeline Capacity The Redwood pipeline allows the City to buy gas at the receipt point of Malin, Oregon and transport the gas to “PG&E Citygate”, which is normally a higher priced receipt point. The City’s share of the Redwood pipeline was a net benefit to the Gas Utility of $276K through Q2 FY 2021. This is the difference between the cumulative value of Redwood capacity of $933K (the difference of the monthly index prices at the ends of the Redwood pipeline in Malin, Oregon and PG&E Citygate) and the cumulative transportation cost of using the Redwood pipeline of $657K. Gas Budget and Portfolio Performance Supply Volumes and Costs: Budget vs. Actual Figure 9 compares actual natural gas supply volumes and costs with the FY 2021 budget. Natural gas consumption through Q2 FY 2021 was 11.8% lower than the budget forecast, due to reduced consumption from COVID-19 shelter in place orders. Costs were 10.1% lower than budget due to reduced demand. Figure 9: FY 2020 Natural Gas Volumes and Costs – Budget vs. Actual (up to Q2) Figure 10 below shows actual gas commodity prices at Malin, PG&E Citygate and Palo Alto Net Purchase Cost. Natural Gas prices experienced slightly higher volatility during the winter months, due to high nation-wide natural gas demand. Prices are anticipated to be higher than budget for the rest of the fiscal year. 30M 25M ,;-20M E "' 1 1sM E :, 0 :, lOM 1 SM OM Cumulative Volumes (Therms) =y 2021 ■ Budget ■ Actual Jul Aug Sep Oct Nov Dec an Fet. Mar Apr May Jun 12M 10M SM ,.._ -e t: GM 0 u 4M 2M OM Cumulative Costs ($) :y 2021 ■ Budget Co mm odity ■ Local Tra ns ■ Bae t>one Quarterly Update for First & Second Quarters of FY 2021 June 2021 11 Figure 10: FY 2020 Natural Gas Prices ($/MMBtu) - Malin, Citygate and Palo Alto Net Purchase Costs (up to Q2) iii. Water Water Availability Although there have been numerous stories in the media about severe drought in California particularly regarding the State Water Project and Central Valley Project, conditions are not as severe in Tuolumne county, Alameda county, San Mateo and Santa Clara counties where drought is considered moderate. Valley Water, the groundwater manager in Santa Clara county is continuing to ask for 20% voluntary water use reductions which has been in place since the last drought. The figure below shows a rough map of drought conditions across the state. Figure 11: California Drought Monitor cy 2021 3 2 Ju l Aug Se p Oa: Nov Dec a ■ Pa lo Alto Net Pu rchase rice ■ Mal i n Actua l ■ Citygate Actual Mal i n o recast Mar Intensity: D None D DOAl>normallyDry D D1 Moderate Drougtt D2 severe Drought -D3 Extreme Drought -D4 Exceptiona l Drought Apr The Drought Monitor fowses on broad-scale cond1hons. Local condltJons may vary For more nformat,on on 6te Drooght Mo nitor, go lo httpdldroughtmon itor.unl.edu/About.a::px Auth or: Brad Pug h CPC/NOAA USDA -droughtmonitor.unl .edu Citygate Fo r ecast Ma y Ju Quarterly Update for First & Second Quarters of FY 2021 June 2021 12 As of March 29, 2021, the Regional Water System total storage operated by the San Francisco Public Utilities Commission (SFPUC) was 83% full. Normally Hetch Hetchy is 59% full by this date; it is slightly below average at 51%. Water Bank, a critical asset used to manage variable water availability, is normally nearly full this time of year; it is also slightly below at 94%. The figures below show the snowpack at Hetch Hetchy and water usage on the Peninsula which is higher than last year and the 5-year average. SFPUC will notify Palo Alto and other customers by April 15th voluntary reductions in water usage will be implemented. It is possible but very unlikely that the state will mandate water use reductions this year as occurred in the last drought. Figure 12: Hetch Hetchy Snowpack 300 _250 C: ctJ :a Cl) :!: 200 """ '-c. < 0 150 ~ -.:.:: (.) ct1 100 C. ~ 0 C: VJ 50 -2021 Snow Pillows Index -Long Term Median * 2021 Snow Course Index ····•• 1983 ••••• 2015 ····••2020 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Quarterly Update for First & Second Quarters of FY 2021 June 2021 13 Figure 13: SFPUC Water Deliveries Water Supply Water supply through Q2 FY 2021 was slightly lower compared to FY 2020, due to meter read issues at two of the SFPUC meter turnouts. The figure below shows the monthly water supply purchases in FY 2021 through Q2, compared with FY 2018, FY 2019 and FY 2020. Figure 14: Potable Water Use s ,:, ~ .. I 75 70 65 60 55 50 45 40 35 30 25 20 15 -Awg . of CY 20 16-202 0 Oel ive ri es -+-20 13 M e tH De liverie-s ~2020 M ei:e,r De li>J erie s ...,_202 1 M ete,r De live rie s Monthly Volumes (CCF) J u l Aug Sep 6OO K SOO K ~ 4OOK u ~ ., E 3OO K Cl 0 ::, ZOO K 10O K OK SF PUC Reg ·onal Water System -Meter Deliveri es Peninsula Customers Source : SFPUC Reg ional Water System Co unty Me ters Oct N ov Dec Jan ... Feb M ar San Fra n cisco Water Power Sewer Apr M ay Jun Yea r FY 2018 ■ FY 2019 ■ FY 2020 ■ FY 2021 Quarterly Update for First & Second Quarters of FY 2021 June 2021 14 Covid-19 Impact on Water Usage Figure 15 below shows the difference between water usage in CY 2020, compared with CY 2018-19 average. Covid-19 had no impact on CPAU’s system-wide water usage; although there was reduced commercial use, it was offset by increased residential use. Figure 15: CY 2020 Water Usage, compared with CY 2018-19 Average Water Budget and Portfolio Performance Supply Volumes and Costs: Budget vs. Actual The figure below compares actual water supply volumes and costs to the FY 2021 budget projections. Actual water supply volumes were 4.5% below forecast and water supply costs were 4.1% lower than budget. Lower supply volumes and costs were likely due to meter read mentioned above. Figure 16: FY 2021 Water Volumes and Costs – Budget vs. Actual (Up to Q2) Mont h 600K 400K CCF ZOOK OK ;;.. ;;.. .r: >, ill >, .µ ..... ..... u ·;:: Ill C "' Ill Ill ..... CL ~ :::J :::J :::J ::J :::J Ill -:1 2. -, ...... !JI C ..... ~ :::J Ill .n <:l: -, ill LL Cumulative Volumes {CCF) FY 202:'.. 4M iL' 3M u ~ ■ Actual " E ::; ■ Budget 0 2M > 1M OM Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun ..... ..... ill ill .n .0 E D -H ill .µ 0 CL ill LFl ..... ill .0 E ill ~~ D z ..... ill .0 E ill u Ill a ■ W ater, 202 0 ■W ate r, 2018-_9Av e rsg e Cumu lative Costs($) ~ e t: 20M 15M 8 lOM SM OM FY 202:'.. Actual ■ Budget Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Quarterly Update for First & Second Quarters of FY 2021 June 2021 15 iv. Fiber Optics Commercial Dark Fiber Service: The total number of commercial dark fiber customers at the end of FY 2021 Q2 was 93 accounts (92 commercial accounts and 1 City account). The total number of active dark fiber service connections serving commercial and City customers is 191 (some customers have multiple connections). Commercial customers generate approximately 44.87% of the dark fiber license revenues. The remaining 55.13% of licensing revenues is from City departments. Phased Fiber Optics Expansion: On September 10, 2019 the City issued an RFP to solicit one or more qualified consultant(s) to begin a multi- phase fiber network expansion to support a communications platform for Advanced Metering Infrastructure (AMI), Supervisory Control and Data Acquisition (SCADA) system, and wireless communication for City Operations. This proposed approach would also become a springboard for Fiber to the Home (FTTH) because the City will be adding new telecommunications infrastructure which may reduce the incremental cost to extend fiber to the home. On June 1, 2020 a contract was awarded to Magellan Advisors as project consultants (Staff Report #11368); The Magellan contract was amended on October 5, 2020 to accelerate some tasks in phase 3 to develop the fiber-to-the-premises (FTTP) business case (Staff Report #11580). The current recommendation is to combine Phase 2 and Phase 4 of the Magellan contract to provide detailed engineering design of the City’s fiber backbone and fiber-to-the-home (FTTH). The Fiber Expansion initiative is divided into four phases in the RFP scope of work. As phases are completed, staff will be seeking Council’s approval of the completed tasks and funding authorization for subsequent phases (2 and 4). Phase 1 High-Level Design and Cost Estimate for AMI, SCADA, and Wireless Communications for City Field Staff and Other City Services. The backbone design, and its subsequent implementation is the critical element of the Fiber network since all technologies and services are enabled by, and depend upon, the backbone. City departments, services and community needs are considered in the high-level design; Phase 3a FTTH Business Case and high-level design for a citywide network. This expands on the fiber network for AMI, SCADA and wireless communication backbone and includes an assessment of possible alternatives for FTTH. The City seeks to be all-inclusive in its study of various broadband solutions. Wireless, Fiber, microwave and other technologies are under review; Phase 3b Development of a community engagement platform including a broadband survey for residents and businesses, exploration of public-private partnership opportunities and models for FTTH, and the evaluation of federal and state grant funding options for broadband infrastructure; Phase 2 seeks a detailed engineering design and cost estimate for fiber expansion to support AMI, SCADA, and wireless communication for City field staff and other City services; Quarterly Update for First & Second Quarters of FY 2021 June 2021 16 Phase 4 seeks a detailed engineering design, cost estimate and a phased deployment approach for FTTH. Staff presented the FTTH business case to the UAC on April 21, 2021. Magellan has completed the high-level design of the FTTH network and a broadband market assessment by small neighborhoods. Magellan has also developed cost and revenue models and different deployment scenarios ranging in costs from $22 - $28 million for the fiber backbone expansion and an additional $86 - $98 million for FTTH, depending on whether there is a public-private partnership and on the number of premises passed during the initial deployment. v. Efficiency Programs Saving Energy and Water While Sheltering in Place – Staff is 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, the City have been sending e-mails and running a social media campaign to share tips and tricks for saving energy and water and making the home environment more comfortable. View these tips online at https://www.cityofpaloalto.org/Departments/Utilities/Residential/Home-Efficiency-Genie/Efficiency- Tips and follow the City in social media with the hashtags #WePowerOn #PaloAltoProud and #PublicPower. Energy & Water Efficiency Workshops Many public events and workshops were canceled this spring in response to the COVID-19 pandemic. The City’s partners at the Bay Area Water Supply and Conservation Agency (BAWSCA) are offering virtual landscape workshops so residents can learn how to save water and improve the sustainability of your landscape from the comfort of home. Palo Alto residents and businesses can take advantage of landscaping programs through the City’s cost-sharing partnership with Valley Water at https://www.valleywater.org/saving-water/rebates-surveys The Home Efficiency Genie program will be continuing with a webinar series, started in the summer of 2020, with an informative evening on May 4 2021 covering the many aspects of preparing a home for spring and summer conditions by focusing on efficiency, comfort and health. Highlights include maintaining a comfortable and healthy home by improving the building envelope with insulation and air sealing. With impending fire seasons, the webinar will emphasize best practices for air sealing and adequate filtration to reduce the health risks associated with smoky outdoor conditions. With warmer temperatures approaching and more residents interested in adding air conditioning, an emphasis will be on the benefit of converting a gas fueled furnace to an efficient all electric heat pump that will add cooling to their home. With a year of lower annual rainfall, the City will provide guidance on water saving measures, especially with promoting the lawn replacement rebates offered through its partner Valley Water. 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 Quarterly Update for First & Second Quarters of FY 2021 June 2021 17 • 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 Residential Energy Assistance Program (REAP) program has been unable to provide the usual in-home visits to offer direct install efficiency measures to REAP program participants since March of 2020 due to health and safety concerns associated with COVID-19. In order to provide no contact service to REAP customers, the City has arranged with its Home Efficiency Genie program provider CLEAResult to offer free over the phone efficiency advice, free self-install measures and free Genie virtual in-home visits. The Genie virtual assessment offers participants an innovative, smart-phone-based engagement platform with the Genie technician to virtually walk participants through their home offering live, interactive efficiency advice. Following the assessment, they are offered free efficiency measures like LED light bulbs, smart power strips and water saving devices delivered to their home. These virtual Genie services are initially being offered to approximately 100 REAP participants who have been unable to take advantage of the REAP in-home services since March 2020. Events and Workshops For updates on future events and workshops, please visit cityofpaloalto.org/workshops. vi. Communications Highlights This section summarizes communications highlights, updates on major campaigns and noteworthy events. Copies of ads and bill inserts are available online at cityofpaloalto.org/UTLbillinsert Current Communication and Outreach Activities Communicating Through Crises During COVID-19, heatwaves and wildfires, CPAU and other publicly owned electric utilities bolstered public outreach to assist customers during difficult times. California Municipal Utilities Association (CMUA) Water & Power Magazine published an article in the Winter 2021 Edition highlighting this enhanced communication effort. In a survey conducted last summer in the midst of multiple once-in-a generation crises, customers of California’s publicly owned electric utilities gave them high marks for the quality and relevance of their communications. Respondents also said those communications conveyed sincere empathy for those struggling because of the pandemic. In many dimensions, communications from California’s publicly owned electric utilities got higher marks from customers than those served by the state’s investor-owned utilities. POUs solidified their position among customers by communicating important material, by serving customers despite many staffing and other challenges, and by showing empathy. This was not an accident. Many publicly owned electric utilities quickly adapted their communications strategies to deal with the confluence of the pandemic, record-setting heat, the looming threat of brownouts and the constant risk of devastating wildfires. Read more here: https://www.cityofpaloalto.org/News-Articles/Utilities/Communicating-Through-Crises Quarterly Update for First & Second Quarters of FY 2021 June 2021 18 The Switch is On CPAU is a member of the Building Decarbonization Coalition and helping fund a new Bay Area wide campaign about home electrification. The Switch Is On campaign offers information and resources to help residents who want to convert appliances and home energy use from natural gas to electricity. Palo Alto residents can take advantage of rebates from CPAU for upgrading appliances, such as heat pump water heaters. Visit cityofpaloalto.org/electrification for an overview about electrification and switchison.org to check out the resources available to residents in all communities. Water Conservation Showcase CPAU is a proud outreach partner of the 18th annual Water Conservation Showcase—a free virtual conference hosted each Tuesday in April, 2021. The showcase features dozens of sessions and speakers discussing major water issues of the day. Attendees will learn about scalable strategies and solutions to conserve one of Earth's most precious resources. Drive-Clean-a-Thon Join us for an electric vehicle and electric bike Drive-Clean-a-Thon on Saturday, April 24 from 4-5pm. This event is organized by Drive Clean Bay Area with support from several climate-focused organizations, including CPAU. EV and e-bike experts will share unbiased expertise about how driving and biking electric can help save time, money, and the planet. This webinar is free. Sign up at cityofpaloalto.org/workshops Valley Water Advanced Purification Treatment Plant Scoping Meeting On March 29, Valley Water hosted a public scoping meeting to discuss potential siting options for a new advanced purified water treatment plant. One location option is the former Los Altos Treatment plant site, located on San Antonio Road in Palo Alto. At this meeting, community members were presented with the opportunity to learn about the project, the planning process, and provide feedback related to environmental impacts that will be analyzed as part of the California Environmental Quality Act (CEQA). We will continue to share information with the UAC about the “Purified Water Project” as plans evolve. Landscape Design 101 Workshop On March 23, CPAU hosted a free virtual workshop about how to design and create a sustainable, low-water use landscape. This event was coordinated in partnership with the Bay Area Water Supply and Conservation Agency (BAWSCA) and Valley Water. Attendees learned about the variety of free efficiency services and rebates available from CPAU and our partners in water conservation. More than 120 people attended the workshop, which is one of the best turnouts we have seen for an event of this type. Upcoming events On May 4 and May 6 CPAU offers landscape sustainability and Home Efficiency Genie workshops. Details and registration are available at cityofpaloalto.org/workshops Quarterly Update for First & Second Quarters of FY 2021 June 2021 19 vii. Innovation and Pilot Programs Program for Emerging Technologies CPAU’s Program for Emerging Technologies, or PET, (www.cityofpaloalto.org/UTLInnovation) provides the opportunity for local businesses and organizations to submit proposals for innovative and impactful products to CPAU for review as a prospective partner. The goal is to find and nurture creative products and services that will improve customer value, save natural resources, or reduce carbon emissions. From the program’s inception in June 2012 through the third quarter of FY 2021, the program has received a total of 94 applications. Table 3 below summarizes the status of all applications through the third quarter of FY 2021. So far this year, none of the applicants have reached the threshold of value, quality, and relevance to be considered good fits for a pilot project. CPAU is currently in discussions with some applicants about revising their projects and is also evaluating potential regional collaborations with promising early stage companies. In order to provide more clarity for applicants and better focus the applications on CPAU’s priorities, staff is also revising the program’s guidelines to highlight what makes a compelling project pitch for CPAU. These updated program priorities and guidelines were released this year and presented to the UAC. Pending other priorities and sufficient resources, staff will work with local universities and accelerators to solicit high-quality applications closely aligned with CPAU’s highest priorities in calendar year 2021. Academic Collaborations This past six months, staff completed two academic collaborations which were started in FY 2020. One collaboration was with a Stanford researcher modeling hourly all-electric load shapes for single family homes and the implications for the distribution systems, transmission system and electricity generation in California. The other collaboration was with a San Jose State researcher modeling the impacts of utility scale battery systems on the emissions of the California electricity wholesale market. Completed Projects In FY 2020 we submitted three letters of support for exceptionally promising very early-stage technologies for research grants and accelerators, and completed the previously mentioned academic collaborations. Table 3: Status to date of all applications to the Program for Emerging Technologies Deadline Total Received Under Review Declined/Closed Active Completed FY 2013 13 0 11 0 2 FY 2014 15 0 11 0 4 FY 2015 15 0 11 0 3 FY 2016 14 0 9 0 5 FY 2017 10 0 7 0 3 FY 2018 10 0 9 0 1 FY 2019 9 0 5 0 4 FY 2020 8 0 3 0 5 FY 2021 0 0 0 0 0 TOTAL 94 0 66 0 27 Quarterly Update for First & Second Quarters of FY 2021 June 2021 20 viii. Sustainability Electrification Heat Pump Water Heater Program The heat pump water heater program (HPWH) has experienced an increase in completed projects in 2020 compared to 2019. There were 7 completed HPWH projects in 2019 and in contrast, there were 24 projects completed in 2020. The increase may be due to several factors, one being that COVID-19 shelter in place orders have kept residents at home more and this may have increased awareness of their home’s water heater condition. There has also been an increased number of utility bill inserts and print advertising promoting the HPWH rebate, highlighting the need to be proactive in replacing a water heater before it fails. The HPWH continues to be promoted in our electrification and Home Efficiency Genie webinars. We expect this upward trend to continue into 2021 with 9 HPWH applicants as of March 31, 2021. Staff expects to explore how to revise this program to accelerate participation as part of the S/CAP update process. Multifamily Gas Furnace to Heat Pump Retrofit Pilot In 2018, CPAU was awarded a $300,000 grant by the Bay Area Air Quality Management District to implement a pilot to help retrofit existing in-unit gas wall furnaces with high efficiency heat pump systems at up to 3 affordable multifamily properties. The goal of the pilot is to identify the retrofit barriers, the energy savings and GHG reductions from such retrofits. As of September 2020, MidPen Housing has committed to retrofitting a minimum of 20 units at Page Mill Court. MidPen has selected a contractor and signed a contract with ASG Builders for the furnace replacement work through a competitive bid process. Due to COVID-19 shelter in place orders, the installation work had been deferred. MidPen has selected a contractor through a competitive solicitation process; construction is tentatively scheduled to begin in May 2021. The Switch is On Campaign CPAU has been collaborating with the Building Decarbonization Coalition and other utilities/CCAs on a consumer outreach campaign to support home electrification. The campaign is aptly named “The Switch is On.” CPAU officially launched a local campaign in mid-November. This will include digital ads on popular online platforms such as Google and Facebook and will leverage the city’s social media channels and e-newsletters. The digital ads will direct traffic to the website “switchison.org,” which provides comprehensive information on how to make the switch from natural gas to electric appliances for water heating, space heating/cooling, cooking, as well as barbeques, fireplaces and pool heating. The campaign will be actively promoted by Community Choice Aggregators (CCAs) in Northern California and will expand to the Southern California in spring 2021. Electrification Education and Outreach In the effort to expand building electrification education, CPAU collaborated with NCPA (Northern California Power Agency) and 15 other member agencies to issue an RFP for electrification education including workshops, online classes, electrification expo’s, virtual electrification audits and youth education. Proposals were submitted on September 10, 2020 and interviews and evaluations were conducted in October. Ten proposals were submitted, and 4 vendors have been selected. Contracting is expected to be completed by the end of CY2020. Quarterly Update for First & Second Quarters of FY 2021 June 2021 21 Cool Blocks Electrification Initiative CPAU engaged the Empowerment Institute to conduct 3 focus groups comprised of existing Cool Block leaders and members to understand the perceived barriers to electrification and to gauge levels of interest in different program areas for homeowners and renters. The focus groups were conducted in September 2020, Based on the focus group findings, the Empowerment Institute recommended that CPAU align the all-electric home message with the City’s S/CAP goals, focus on the health and safety benefits of an all-electric home, provide tools and resources to residents to begin the home electrification journey, increase communications about the available services, and leverage resident support and expertise. The Empowerment Institute has also updated the Cool Block program curriculum to include home electrification actions. Electric Vehicles LCFS Low Carbon Fuel Standard Program LCFS base credits are allocated by CARB to CPAU, based on the number EVs registered in Palo Alto, the estimated miles travelled and the difference in carbon intensity of transportation fuels and electricity. Additional credits were also allocated for fork-lifts but have now been discontinued. Credits are also allocated based on CNG dispensed and electricity dispensed at city owned EV chargers. Due to the pandemic, the credits earned declined in CY Q2 2020 and are slowly recovering. Figure 17: History of LCFS Credits Earned Per Quarter (Up to Q4 CY2020) LCFS Credits Earned Per Quarter By Sector 3,500 -Credits Based on Est i mated EVsRegistered i n Pa bAlto 3,000 -e r edits Based on Electr icity Dipen9:CI f rom City ow ned EVSEs 2,5 00 -Credits Based on Electr icity Di pen9:CI f rom City Electr ic For kl" s -c redits Based on CNG Dispensed at MSC 2,000 -Total Crecf sGai ned 1,5 00 1,000 Quarterly Update for First & Second Quarters of FY 2021 June 2021 22 Table 4: Notable EV Charger Projects Completed in CY2020 EV Charger Rebate Program CPAU rebates up to $8,000 per EV charging port for a maximum of 10 ports, for multifamily and non-profit customers. CPAU also offers Residential Transformer Upgrade (Utility Service Capacity Fee) rebates of up to $10,000 as well as Commercial Transformer Upgrade rebates up to $100,000 when a minimum of 10 connectors or fully wired EVSE-ready outlets are installed. All incentives are funded through LCFS credits. These incentives continue to help drive interest to the EV Technical Assistance Program (EVTAP). Staff is also learning that to accommodate new EV chargers, about half of the transformers serving the non-profits and multifamily properties participating in TAP may require a new transformer. Program statistics as of the end of Q2 FY2021: • Number of applications: 42 • Approved number of rebates: 13 • Total amount of rebates approved: $346,000 • Number of new ports installed: 75 EV Solutions and Technical Assistance Program The EV Technical Assistance Program (EVTAP) was launched in October 2019 with the goal of assisting customers such as multifamily properties and non-profits in taking advantage of State and Local incentives to install EV charging infrastructure and to help navigate the complex technical process of installing charging infrastructure. Program interest and new enrollments slowed down significantly due to COVID but interest is gradually picking. In Q1, the EVTAP program was also expanded to Small to Medium Sized Businesses (SMB). In coordination with the City Manager’s Office, a call campaign was conducted from November through December to SMB customers. Only 10 of the 132 call recipients were interested in EV chargers, but almost all were extremely appreciative of information about the City and COVID response efforts for small medium businesses. Program statistics as of the end of Q2 FY2021: • TAP Interested Sites: 88 Site I Level 1 level2 t.. I Tota[ Number of DC Fast Cuarger New Ports El I e n Fletcher 0 1 8 1 1 9 M i dd le Sc hoo l Gunn Hig h Sch ool 0 14-1 1 5 Gree n e M i d d le Scho o l 0 14-1 1 5 SAP 0 120 4 1 2 4 Bryan t Street 0 6 0 6 Ga rage Co w per /Web st ,er 0 14-0 14 Ga rage ------- 186 , I 193 Quarterly Update for First & Second Quarters of FY 2021 June 2021 23 • Number of Technical Site Visits Complete: 24 • Number of Final Reports Presented: 28 • Proposed total number of new EV Charging Ports: 226 @ 16 Multifamily Properties, 9 Places of Worship and 1 Non-Profit • Number of Permit Applications Submitted: 2 @ 2 Multifamily sites for 6 new EV Charging Ports • Number of new ports installed: 0 CALeVIP The California Energy Commission partnered with five local energy agencies to launch the Peninsula-Silicon Valley Project, an initiative of the California Electric Vehicle Infrastructure Project (CALeVIP), which aims to develop and implement regional incentives to support statewide adoption of EVs. CPAU has committed $1M of Low Carbon Fuel Standard (LCFS) funds, to receive $1M in grant funding. These funds became available to all Palo Alto commercial customers to install Level 2 or Level 3 fast chargers over the next 2 years. The program was successfully launched on December 16, 2020. The City of Palo Alto also applied for CALeVIP funds to install DC Fast Chargers at 2 downtown public parking garages. The hope is that increased EV charging infrastructure in the downtown area will help not only visitors and commuters, but also the 727 low-income households (10 low-income multifamily properties) living within walking distance to University Ave. Over the coming months, applicants will be notified whether they successfully reserved funds. Program statistics as of the end of Q2 FY2021: Clean Fuel Rewards Program ■•;ufl(,t,j ■ __ J ilJ0,000 _ 1,. $1 Quarterly Update for First & Second Quarters of FY 2021 June 2021 24 The Clean Fuel Rewards point-of-sale $1,500 rebate launched on November 17, 2020 at participating dealerships. All Palo Alto residents purchasing electric vehicles are eligible for this discount. The City of Palo Alto Utilities has contributed Low Carbon Fuel Standard (LCFS) funds towards this new statewide initiative, which was approved by City Council in May 2020. CPAU expects to contribute $300-$400K annually for the next 10 years. Curbside Charging Pilot Program The goal of this pilot program is to install publicly available curbside chargers at 10 pilot sites with electricity supplied by resident homes. In Q2 2020, the City Manager approved EV charger rebates to be extended to curbside charger locations. Public Works and Planning are working with residents interested to do such curbside projects in front of their homes by issuing encroachment permits and Utilities’ role is to provide the rebates to cover associated customer costs. The non-profit Adopt-A-Charger is facilitating these projects. Program statistics as of the end of Q2 FY2021: • One permit application has been submitted for a 2-port curbside charger Electric Vehicle Education and Outreach In Fall 2020, CPAU collaborated with NCPA (Northern California Power Agency) and 15 other member agencies to issue an RFP for EV and Electrification education including workshops, online classes, virtual and in-person ride and drives, expos and youth education. Eight vendors have been selected with five offering EV programs Contracting is expected to be completed by the end of Q3 FY2021. Vendors selected for EV education: • Charge Across Town • D+R International • Electric Car Insider • Plug-In America • Acterra ix. Legislative and Regulatory Issues State legislation CPAU is currently tracking over 45 bills. Some of the bills are tracked because they would add reporting requirements or modify our operations; some because they could change the state’s energy policy or are of interest given the City’s priorities. Key bills to note are: AB 100 (Holden) Drinking water: pipes and fittings: lead content. This bill limits the amount of lead leaching from faucets and fixtures to no more than 1 microgram, which is five times lower than the current industry standard. AB 339 (Lee) Local government: open and public meetings. Requires all “Brown Act” meetings (such as the UAC meeting) to include an opportunity for members of the public to attend via a call-in or video conference. All meetings must also include an in-person comment opportunity, unless the meeting takes place during a declared emergency. Also requires interpretation services as requested, with a system to process requests for Quarterly Update for First & Second Quarters of FY 2021 June 2021 25 interpretation services and the availability of instructions on joining the meeting to all non-English-speaking persons upon request. Instructions must be published in the 2 most spoken languages, other than English, within the local agency’s jurisdiction. AB 525 (Chiu) Energy: offshore wind generation. Requires the CEC, on or before March 1, 2022, to evaluate and quantify the maximum feasible capacity of offshore wind to achieve reliability, ratepayer, employment, and decarbonization benefits and to establish offshore wind planning goals for 2030 and 2045. AB 641 (Holden) Transportation electrification: local publicly owned electric utilities. Requires electric POUs to develop and adopt a transportation electrification plan, individually or in collaboration with other POUs, with certain elements to support the level of EV adoption required for the state to meet certain goals. AB 970 (McCarty) Planning and zoning: electric vehicle charging stations: permit application: approval. Provides that a residential charging station permit is approved within 15 days of submittal if certain criteria are met, including that the applicant has already obtained all required approvals from a POU. AB 1434 (Friedman) Urban water use objectives: indoor residential water use. Starting in 2023, this bill would incrementally lower the standard for indoor residential water use to 40 gallons per capita daily by January 1, 2030. The current standard has us at 50 gallons by 2030, or whatever number DWR studies recommend. Also mandates conduct necessary studies and investigations and may recommend a standard for indoor residential water use that more appropriately reflects best practices than the standard described in the bill. AB 1500 (Garcia, Eduardo) Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2022. If approved by voters, would provide bond funding to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, and workforce development programs. SB 45 (Portantino) Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood Protection Bond Act of 2022. Enacts the Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood Protection Bond Act of 2022, which, if approved by the voters, would authorize bonds for $5.6 billion to finance projects for a wildfire prevention, safe drinking water, drought preparation, and flood protection program. SB 223 (Dodd) Discontinuation of residential water service. This bill seeks to expand provisions regarding prohibiting discontinuation of residential water service due to nonpayment. These provisions include expanding the conditions that must be met to discontinue water service (such as expanding the duration of delinquency) and requiring the consideration of arrearage management plans. SB 323 (Caballero) Local government: water or sewer service: legal actions. Creates a 120 day statute of limitations for legal challenges to water and sewer service charges that are adopted after January 1, 2022. SB 351 (Caballero) Water Innovation Act of 2021. Sponsored by CMUA, this bill would create the Office of Water Innovation for the furtherance of new technologies and innovative approaches in the water sector. By December 31, 2023,the Office shall take specified measures to advance innovation in the water sector. The bill would further create the Water Innovation Fund for the furtherance of water innovation. Quarterly Update for First & Second Quarters of FY 2021 June 2021 26 SB 378 (Gonzalez) Local government: broadband infrastructure development project permit processing: microtrenching permit processing ordinance. Authorizes a fiber provider to determine the method of installing fiber in a city, including microtrenching. SB 427 (Eggman) Water theft: enhanced penalties. Authorizes a local government to make any violation of a local ordinance regarding water theft subject to an administrative fine in excess of current legal limits. SB 617 (Wiener D) Residential solar energy systems: permitting. Requires every city and county to implement an online, automated permitting platform that verifies code compliance and instantaneously issues permits for solar energy systems no larger than 38.4 kW and an energy storage system paired with a solar energy system that is no larger than 38.4 kW. Also requires a city or county to amend a certain ordinance to authorize a residential solar energy system and an energy storage system to use the online, automated permitting platform. CPAU staff continues to work closely with CMUA and NCPA on legislative issues. This work includes participating on legislative committees, standing work groups, and ad hoc work groups. State regulatory proceedings Below, we note the issues CPAU have tracked or engaged in with various agencies during the last quarter, primarily through our work with CMUA and NCPA. Energy Commission Load management standards and the SB 100 joint agencies report: Achieving 100 Percent Clean Electricity in California: An Initial Assessment Public Utilities Commission Proceedings related to PSPS and physical security Wildfire Safety Advisory Board – currently under the CPUC’s jurisdiction Template for future Wildfire Mitigation Plans and Mitigation plans generally State Water Resources Control Board Indoor and outdoor water use; drought and water shortage; water loss control standards. CPAU also participated in a survey regarding utility debt due to the pandemic. x. Utility Financial Summary This section describes the unaudited actual financial results for FY 2021 for all Utilities funds. The Council- adopted long-term Financial Plans for the Electric, Gas, and Water Funds was updated for FY 2021 during the budget review process. The Wastewater Collection Fund Financial Forecast was updated for FY 2021 and presented to the Finance Committee. Quarterly Update for First & Second Quarters of FY 2021 June 2021 27 Electric Utility Overview Sales for the Electric Utility in FY 2021 are projected to be 3.9% higher than forecasted in the FY 2021 Financial Plan. Revenues are also projected to increase by $7.4 million or 4.5% higher than forecasted; this is due to higher sales as well as increasing EMA/Market sales (sales of surplus energy) as well as REC sales revenue. Staff projects expenses to be $9.8 million higher than forecasted in the FY 2021 Financial Plan. This is due in part to higher administration cost projections based on higher FY 2020 actuals (about $1 million), and new budget funding for the City’s Low Carbon Fuel Standard (LCFS) budget which did not show in the FY 2021 adopted budget. However, LCFS spending is funded by LCFS revenues rather than ratepayer funding or other funding sources. The impact to reserves in FY 2021 is due to the segregation of these funds into a separate LCFS reserve. In addition, electric supply purchase costs are projected to increase by about $5.4 million, mainly due to poor projected hydro conditions. The Electric Supply and Distribution Reserves were within guideline ranges at the beginning of FY 2021 and are projected to be within guideline ranges at year end FY 2021. In addition, due to surplus energy revenues seen in FY 2019 and FY 2020, staff continued repayment of a short term $10 million loan from the Electric Special Projects (ESP) reserve done in FY 2018, and provided additional funds to the Hydro Stabilization Reserve for future dry-year conditions and the Capital Reserve for future capital improvement needs. The Electric Utility CIP Reappropriation and Commitment Reserves totaled a projected $28.6 million at the end of Q2 FY 2021. Gas Utility Overview Sales for the Gas Utility in FY 2021 are projected to be 7.1% lower than forecasted in the FY 2021 Financial Plan. However, staff projects a decrease of only 2.2% in revenues, mainly due to increased projected market costs for natural gas itself, but also increased cost projections for transmission and Cap and trade related costs. These charges are pass-through in nature, so variations from budget will not have dramatic reserve effects. On the expense side, while commodity costs are increasing, operational cost estimates have been revised downward from the original FY 2021 forecast, effectively netting out much of the cost increase impact. The Gas Operations Reserve was within the reserve guideline levels at the beginning of FY 2021 and is projected to be within the guideline levels at year end FY 2021. The Gas Utility CIP Re-appropriation and Commitment Reserves totaled $9.4 million at the end of Q2 FY 2021. Water Utility Overview Staff projects sales for the Water Utility in FY 2021 to be 4.8% higher than forecasted in the FY 2021 Financial Plan. Similarly, sales revenue is expected to be 4.2% higher than forecasted in the FY 2021 Financial Plan. This is in part because the sales decreases forecasted in the FY 2021 Financial Plan, which were made in light of the COVID-19 pandemic and related economic impacts have not materialized and additionally because of continued dry weather conditions. Staff projects overall FY 2021 sales revenue to be only 0.9% higher than in the FY 2021 Financial Plan due to other revenue, including interest income, being lower. Expenses were 0.3% lower than anticipated in the Financial Plan; this does not reflect changes in the timing of CIP expenditures. In FY 2020 there was a deferral of water utility capital spending due to pursuing lower pricing for the Corte Madera tank replacement as well as removing a portion of Water Main Replacement 27 from the original scope. Changes in Quarterly Update for First & Second Quarters of FY 2021 June 2021 28 deferred CIP spending for FY 2021 will be reflected in the CIP Reserve at year end. This is because the Water Utility funds CIP through an annual transfer from the Operations Reserve to the CIP Reserve. The Water Operations Reserve was above the reserve guideline levels at the beginning of FY 2021 and Table 5 below illustrates the reserve remaining above the maximum at year end FY 2021. However, Council approved up to an $8 million transfer from the Operations Reserve to the CIP Reserve FY 2021 to fund ongoing CIP work and staff is requesting authorization for up to an additional $13.24 million in transfers from the Operations Reserve to the CIP Reserve in FY 2022 to fund ongoing main replacements (WMR 28 is planned in FY 2022) as well as one-time seismic reservoir upgrades (one upgrade is ongoing and a second is planned for FY 2023). These transfers together with expected revenues and expenses are projected to bring the Operations Reserve to approximately target levels by the end of FY 2023. The need for the transfers will be re-evaluated at the end of FY 2021 when the reserve balances are known. Approximately $11 million in projects budgeted in FY 2020 or earlier will be re-appropriated to FY 2021. The largest being seismic water system upgrades, estimated at $5 million. The Water Utility CIP Reappropriation and Commitment Reserves are projected to total $10.2 million at the end of Q2 FY 2021. Wastewater Collection Utility Overview Staff projects Wastewater revenues for FY 2021 to be 4.7% lower than forecasted in the FY 2021 Financial Forecast. This is in part due to expected reductions in non-residential sewer usage due to the impacts of the COVID-19 pandemic and also because of updated reduced projections for other revenue from connection and capacity fees and interest. Staff projects expenses to be 17.6% lower than projected in the FY 2021 Financial Forecast. This is in part due to treatment cost projection reductions of $1.2 million as well as deferrals of CIP spending. However, Sewer System Replacement 30 is planned for FY 2022 with an estimated cost of $4.1 million. Any surplus from FY 2021 and prior years will be used to fund the deficit for sewer replacement in FY 2022. Additionally, as part of the FY 2022 Financial Plan, staff is requesting to implement an annual capital program contribution from the Operations Reserve to the CIP Reserve beginning in FY 2022 as well as a one-time transfer of $2.2 million in FY 2021. Staff expects these changes to minimize Operations Reserve fluctuations due to the timing of Wastewater Collection CIP. The Wastewater Collection Utility CIP Reappropriation and Commitment Reserves totaled $4.8 million at the end of FY 2020. In addition to these previously budgeted funds, the FY 2021 Financial Plan estimated the additional CIP funding needed for FY 2021 to be $4.6 million while the current projection is for only $1.2 million. The Wastewater Collection Operations Reserve was within the guideline range at the beginning of FY 2021 and staff projects it will remain within the guideline range through year end FY 2021. Fiber Optic Utility Overview Fiber revenue is projected to be 7.7% or $428,000 lower than forecasted in the FY 2021 Financial Plan. Due to impacts of the pandemic, several businesses have either closed or relocated their offices. In addition, one of the City’s few remaining EDF-1 promotional rate customers have converted to the EDF-3 rate which results in a decrease of $280,000 of annual fiber leasing revenue. Fiber expenses are projected to be 20.7% or $900,000 lower than forecast. The Fiber Network Rebuild CIP project is temporarily on hold pending Council’s direction for the City fiber network expansion plan and fiber-to-the-home (FTTH). The new proposed fiber backbone will provide high capacity fiber to City departments (Utilities, Public Works, Office of Emergency Services, Quarterly Update for First & Second Quarters of FY 2021 June 2021 29 Transportation, Information Technology, and Community Services). The backbone will be routed through neighborhoods and business districts and serve as a springboard to FTTH. The projected ending FY 2021 Fiber Optic Utility Rate Stabilization Reserve is $34.7 million. Quarterly Update for First & Second Quarters of FY 2021 June 2021 30 Table 5: Utilities Financials, FY 2021 Projections Sales Volumes Revenue $,000 Expense $,000 Net Reserve Change $,000 Electric Utility FY 2021 Financial Plan 766,625 MWh 163,139 (167,097) (3,958) FY 2021 Projections 796,450 MWh 170,494 (176,854) (6,360) Change from Financial Plan 29,825 MWh 3.9% 7,355 4.5% (9,756) 5.8% (2,402) Gas Utility FY 2021 Financial Plan 27,411,000 therms 40,408 (45,176) (4,768) FY 2021 Projections 25,451,000 therms 39,527 (45,053) (5,526) Change from Financial Plan (1,960,000) therms (881) 123 (758) (7.1%) (2.2%) (0.3%) Water Utility FY 2021 Financial Plan 4,355,000 CCF 48,832 (48,270) 562 FY 2021 Projections 4,567,464 CCF 49,264 (48,420) 843 Change from Financial Plan 212,464 CCF 432 (150) 282 4.8% 0.9% 0.3% Wastewater Collection Utility FY 2021 Financial Plan 22,462 (22,660) (198) FY 2021 Projections 21,404 (18,677) 2,727 Change from Financial Forecast (1,058) 3,983 2,925 (4.7%) (17.6%) Fiber Optic Utility FY 2021 Financial Plan 5,563 (4,345) 1,218 FY 2021 Projections 5,135 (3,445) 1,690 Changes from Financial Plan (428) (7.7%) (900) (20.7%) 472 Table 6: Operations Reserves, FY 2021 ($,000) Electric Supply Electric Distribution Gas Water Wastewater Collection Fiber Optic * FY 2021 Beginning 29,429 9,109 13,450 19,841 5,661 33,065 Change (4,216) 1,699 (2,668) 843 527 (19) FY 2021 Ending (Projected) 25,213 10,808 10,782 20,684 6,188 33,046 Reserve Minimum 16,543 8,682 8,000 9,400 3,900 700 Reserve Maximum 33,086 13,822 16,000 18,900 9,800 1,400 * For Fiber Optics, the Reserve is the Rate Stabilization (not the Operations) Reserve Quarterly Update for First & Second Quarters of FY 2021 June 2021 31 Residential Bill Comparisons Table 7: Residential Electric Bill Comparison ($/month) As of January 2021 Season Usage (KWh/mo) Palo Alto PG&E Santa Clara Roseville Winter (Nov-May) 300 $41.27 $74.96 $36.96 $56.58 453 (Median) 69.22 113.19 56.50 72.18 650 107.37 174.55 81.66 99.82 1200 213.89 347.48 151.91 183.61 Table 8: Residential Natural Gas Bill Comparison ($/month) As of January 2021 Season Usage (therms per month) Palo Alto Menlo Park, Redwood City, Mountain View, Los Altos, and Santa Clara (PG&E Zone X) Roseville (PG&E Zone S) Winter (November - May) 30 $40.97 $49.66 $49.66 54(Median) 65.45 92.48 95.21 80 106.09 149.00 151.74 150 232.40 301.19 303.92 Table 9: Residential Water Bill Comparison ($/month) As of January 2021 Usage CCF/month Palo Alto Menlo Park Redwood City Mountain View Santa Clara Hayward 4 $46.89 $52.42 $54.04 $38.34 $25.72 $39.20 (Winter median) 7 70.28 77.50 76.09 59.37 45.01 60.62 (Annual median) 9 90.42 94.23 90.79 73.39 57.87 74.90 (Summer median) 14 140.77 136.31 138.94 108.44 90.02 112.51 25 251.54 229.06 267.39 227.65 160.75 205.02 Based on the FY 2013 BAWSCA survey, the fraction of SFPUC as the source of potable water supply was 100% for Palo Alto, 95% for Menlo Park, 100% for Redwood City, 87% for Mountain View, 10% for Santa Clara and 100% for Hayward. Table 10: Residential Wastewater Collection (Sewer) Bill Comparison ($/month) As of January 2021 Palo Alto Menlo Park Redwood City Mountain View Los Altos Santa Clara Hayward $41.37 $102.00 $85.44 $42.90 $39.63 $44.53 $35.81 Quarterly Update for First & Second Quarters of FY 2021 June 2021 32 Table 11: Median Residential Overall Bill Comparison ($/month) As of January 2021 Utility and Usage Palo Alto Menlo Park Redwood City Mountain View Santa Clara Hayward Electricity (453 kWh/mo) $69.22 $113.19 $113.19 $113.19 $56.50 $113.19 Gas (54 th/mo) 65.45 92.48 92.48 92.48 92.48 92.48 Water (9 CCF/mo) 90.42 94.23 90.79 73.39 57.87 74.90 Wastewater 41.37 102.00 85.44 42.90 44.53 35.81 TOTAL 266.46 401.90 381.90 321.96 251.38 316.38 Quarterly Update for First & Second Quarters of FY 2021 June 2021 33 Table 12: FY 2021 Q1&2 Reserve Report from the City’s Financial System (‘000) Elec tricity S upply/Dist Operations C IP Reappro/Co mmit Hydro Stabilization C IP Reserv e Ra te Stab ilization P ublic Benefit ESP GAS S 68 Pe nsioo Rs rv GAS S 75 O PE S Rsrv A ll Others Net Capita l Investme nt Tota l Gas Operati ons Reserve C IP Reserve Ra te Stab ilization C IP Reappro/Co mmil. GAS S 68 Pe nsi oo Rs rv GAS S 75 O PE S Rsrv A ll Others Net Capita l Investme nt Tota l Water Operati ons Reserve CI P Rese rve Ra te Stab ilization C IP Reappro/Co mmil. GAS S 68 Pe nsi oo Rs rv GAS S 75 O PEB Rsrv A ll Others Net Capita l Investme nt Tota l Fiber Optic Ra te Stab ilization C IP Reappro/Co mmil. GAS S 68 Pe nsi oo Rs rv A ll Others Net Capita l Invest me nt Tota l Wastewater Coll ection Operati ons Reserve C IP Reserv e Ra te Stab ilization C IP Reappro/Co mmil. GAS S 68 Pe nsi oo Rs rv GAS S 75 O PE S Rs rv A ll Others Net Capita l Invest me nt Tota l C ity Of Palo Alto Uti l ity Fund Reserve 02 Reserve Report -Deta il as of Dec. 31 , 2020 -UNAUDITE D Beg in11i11g Changes to Cu r re nt Projected Reserve Ba lance Rese rves Reserve Ba lruice as of 7/0 1/20 Su mm ary as o f 12/3 1/2020 FY 202 1 ASD FY 202 1 $ 38,536 s (8,914 ) s 29 ,624 9,52 1 19,054 28 ,575 15,400 15,400 5 ,880 5 ,880 -- 1,905 1,905 46 ,665 46 ,665 (33,747) (33,747) (13,7 4 1) (13,74 1) 13,16 1 388 13,549 205,6 13 (138 ) 205,475 $ 289,195 $ 10 ,390 $ 299 ,585 $ 13,450 s (8,177) s 5 ,273 3 ,820 3 ,820 8,420 (2 ,376) 6 ,044 1,6 14 7 ,769 9 ,383 (14 ,85 1) (14 ,85 1) (6 ,058 ) (6 ,058 ) 2 ,9 18 4 ,37 1 7 ,289 106 ,659 (925) 105,734 $ 115 ,972 $ 662 $ 116 ,634 $ 19 ,841 $ 7 ,165 s 27 ,006 5 ,726 5 ,726 9 ,069 9 ,069 11 ,036 (783) 10,253 (14 ,114 ) (14 ,11 4 ) (4 ,2 15 ) (4 ,2 15 ) 4 ,122 2 ,375 6,497 103,463 (580) 102,883 $ 134 ,928 $ 8,177 $ 143,105 $ 33,065 $ (19) s 33,046 1,0 11 55 1 1,562 (2 ,154 ) (2 ,154 ) 1,057 170 1,227 9 ,333 (120) 9 ,2 13 $ 42,3 12 $ 582 s 42,89 4 $ 5,66 1 s (250) s 5,4 11 978 978 342 342 4 ,775 (9) 4,766 (8 ,3 19 ) (8,3 19 ) (2 ,3 16 ) (2 ,3 16 ) 132 259 39 1 9 1,4 10 4 11 9 1,82 1 $ 92,663 $ 4 11 s 93,074 Add i C urren t Chruiges to Projected Reserve Reserves to Ba lance for 12/31/2020 Uti l 12/3 1/2020 FY 202 1 (Util) Status Report Tuesday, April 13, 2021 ENERGY AB 64 (Quirk D) Electricity: long-term backup electricity supply strategy. Current Text: Amended: 3/23/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires the CPUC, CEC, and CARB, in consultation with all balancing authorities, to develop a strategy, by January 1, 2024, to achieve (1) 5 GWh of operational long-term backup electricity by December 31, 2030, and (2) at least an additional 5 GWh of operational long-term backup electricity in each subsequent year through 2045. Memo CMUA and NCPA are working to shift the focus towards studying the issue rather than setting firm targets and aligning the evaluation with existing reporting mechanisms. AB 111 (Boerner Horvath D) Transportation: zero-emission vehicles. Current Text: Amended: 3/22/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Directs the CEC to develop model rate structures that POUs can utilize to promote customers’ adoption of zero-emission vehicles, freight equipment, and for the production of hydrogen by electrolysis using electricity from renewable sources. Memo This is a two year bill; will not move forward in 2020. AB 448 (Mayes I) Fire safety: electrical transmission or distribution lines: clearances. Current Text: Amended: 3/25/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Allows those who maintain electrical transmission or distribution lines to go onto private property to remove hazardous, dead, rotten, leaning, or otherwise structurally defective trees, which must be done using a tree evaluation tool or method developed by a certified arborist. The bill further provides that any cut trees would remain the property of the landowner unless the landowner requests the trees to be removed. Memo CPAU communicated with Public Works, Vegetation Management Division. AB 525 (Chiu D) Energy: offshore wind generation. Current Text: Introduced: 2/10/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: A bill to build offshore wind facilitates. Requires the CEC to develop a strategic plan to achieve a goal of at least 10,000 MW of offshore wind energy from off the California coast by 2040, with an interim target of 3,000 MW installed by 2030. The plan must be submitted to the Natural Resources Agency and the Legislature on or before June 1, 2022. The bill also requires the CEC to assess and develop a plan to improve existing waterfront facilities that could support a range of floating offshore wind energy development activities, and would require the CPUC to include offshore wind energy as a resource for full consideration in the CPUC’s IRP process. Memo May not move in 2021. Page 1/10 AB 641 (Holden D) Transportation electrification: local publicly owned electric utilities. Current Text: Amended: 3/25/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires electric POUs to develop and adopt a transportation electrification plan, individually or in collaboration with other POUs, with certain elements to support the level of EV adoption required for the state to meet certain goals. Memo Such a plan is already a component of IRPs; NCPA and CMUA are working to ensure the bill isn't overly burdensome. AB 847 (Quirk D) Electrically conductive balloons. Current Text: Amended: 3/25/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Directs the State to develop regulations governing the sale of Mylar balloons to ensure those sold after September 1, 2025, use non-conductive material. Memo Will become a two year bill after the first committee hearing. AB 1139 (Gonzalez, Lorena D) Energy: California Alternate Rates for Energy program: net energy metering: electrical corporation distributed eligible renewable energy resource allocations: interconnections. Current Text: Amended: 4/8/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: The Solar Equity and Ratepayer Relief Act, this bill repeals NEM programs for IOUs and POUs and replaces it, for IOUs only, with a renewed focus on the existing California Alternate Rates for Energy (CARE) program. No replacement or focus is mentioned for POUs. AB 1161 (Garcia, Eduardo D) Electricity: eligible renewable energy and zero-carbon resources: state agencies: procurement. Current Text: Amended: 3/22/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Enacts the Clean Economy and Clean Jobs Stimulus Act of 2021, requiring the Department of Water Resources to procure newly developed eligible renewable energy resources or zero-carbon resources and energy storage associated with those resources to serve all state agencies by December 31, 2030. DWR would invite POUs to voluntarily subscribe procurement, at the State's expense. Memo The bill raises questions as to how a procurement for state agencies located in POU communities would occur. NCPA is inquiring. AB 1239 (Ting D) Electricity: demand response resources and programs. Current Text: Amended: 3/29/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires the CPUC, by January 31, 2022, to open an investigation into the root causes of demand response market failures, why demand response has not reached its potential, and make recommendations for policy changes. Requires the CPUC, the CEC, and ISO to develop initiatives to achieve all cost-effective demand response by 2030, with expanded demand response programs that improve grid reliability, avoid increasing GHG emissions, and include optional participation by residential customers. Also requires the CPUC, CEC, and ISO to identify barriers that limit ISO's ability to plan for Page 2/10 and utilize demand response. AB 1325 (Burke D) Microgrids: Clean Community Microgrid Incentive Program. Current Text: Introduced: 2/19/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Allows a microgrid to be used to reduce RA obligations for load-serving entities and POUs, even though the Program the bill creates only applies to large electrical corporations. The bill also mandates LSEs and POUs consider microgrids for ensuring electrical grid reliability in their IRPs. SB 67 (Becker D) Clean energy: California 24/7 Clean Energy Standard Program. Current Text: Amended: 3/3/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Revises the State's 100% clean energy by 2045 goal and establishes the California 24/7 Clean Energy Standard Program. The Program requires 90% of retail sales annually by December 31, 2035 be supplied by eligible clean energy resources, with other target dates along the way. For POUs, requires the CEC to develop clean energy procurement requirements for each POU for various compliance periods and subperiods. *Reaching the bill's goal means significantly increasing storage, a sharp increase in our supply costs, a restructure of our supply portfolio, and a change in how hydro is dispatched. CPAU, CMUA, SCPPA, and NCPA have all been in direct contact with the author's office. SCPPA and CMUA are opposing* Memo CPAU contacted Mr. Becker's office very quickly after the bill was introduced as a spot bill to provide information on our electric utility. Later, we were on the phone with the lead staffer within days of release of the amendments to express how the bill would negatively impact CPAU. We also reached out to NCPA and CMUA, who are both actively opposing this bill that, for CPAU, would significantly increase supply costs, completely change the way we dispatch our hydro facilities, cause us to fundamentally restructure our supply portfolio, and disregards the regional nature of the grid. SB 99 (Dodd D) Community Energy Resilience Act of 2021. Current Text: Amended: 4/12/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Not specific to POUs, this bill requires the CEC to develop and implement a grant program for local governments to develop community energy resilience plans. SB 345 (Becker D) Energy programs and projects: nonenergy benefits. Current Text: Amended: 3/23/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: An Environmental Justice bill, SB 345 seeks to have the CPUC consider nonenergy benefits in a more consistent manner across more of its programs. As such, the bill requires the CPUC to determine common definitions for non-energy benefits, and to determine the values of distributed energy technologies. Nonenergy benefits of distributed energy could include lower energy costs, increased property values, and improved public health. SB 423 (Stern D) Energy: renewable and zero-carbon resources. Current Text: Introduced: 2/12/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires CARB and the CEC to timely incorporate emerging renewable energy and firm zero-carbon resources, (ie: geothermal, offshore wind, green electrolytic hydrogen, long-duration energy storage, Page 3/10 and multi-day energy storage) into its energy and resource planning processes. By December 31, 2022, the CPUC and CEC must to each adopt measures to bolster the near-, mid-, and long-term reliability and resiliency of the rid consistent with State goals to reduce localized air pollutants and GHG emissions. Memo SB 437 (Wieckowski D) Local publicly owned electric utilities: integrated resource planning: transportation electrification. Current Text: Amended: 4/8/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires POU IRPs to include details of rate designs that support transportation electrification across all sectors and to provide customers with a cost calculator to accurately predict the cost of paying electricity of vehicle engines. Memo sssss SB 533 (Stern D) Electrical corporations: wildfire mitigation plans: deenergization events: microgrids. Current Text: Amended: 3/5/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: For POUs, allows us to use capacity from a microgrid for RA requirements and directs the CPUC and ISO to develop a methodology to account for the RA value of distributed storage. Memo sssss SB 617 (Wiener D) Residential solar energy systems: permitting. Current Text: Amended: 4/12/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires every city and county to implement an online, automated permitting platform that verifies code compliance and instantaneously issues permits for residential PV systems and energy storage system paired with a residential PV, as long as they are each no larger than 38.4 kWh. Prescribes a compliance schedule for satisfying these requirements; for a city the size of Palo Alto, compliance is due by September 30, 2022. Does not affect a POUs' interconnection requirements or approval process. Memo sssss ENERGY - WILDFIRE-RELATED AB 280 (Rivas, Robert D) Electrical corporations: wildfire mitigation plans. Current Text: Introduced: 1/21/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires electric IOUs to submit their wildfire mitigation plans to the Legislature. (Already submitted to the Wildfire Safety Advisory Board). Tracking in case the bill is amended to include POUs. AB 529 (Bauer-Kahan D) Electrical utilities: fire safety, prevention, or mitigation services: notice. Current Text: Introduced: 2/10/2021 html pdf Page 4/10 Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires IOUs and POUs engaging in fire safety, prevention, or mitigation services in a high fire-threat district or very high fire hazard severity zone to notify the fire protection district responsible for that area at least 48 hours before work is commenced, except in an emergency. The bill also requires electric utilities to provide the fire protection district with a copy of any form used to document any daily safety briefing at those worksites no later than 72 hours after the completion of that workday. Memo The foothills area is considered a "high fire-risk area" under the definitions in this bill; PAFD is our "fire protection district." We hear the bill will be amended to limit the scope to prescribed burn activity and not broader utility mitigation work. SB 312 (Nielsen R) California Renewables Portfolio Standard Program. Current Text: Amended: 3/9/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Spot bill promoting biomass facilities and biomass funding. OTHER AB 59 (Gabriel D) Mitigation Fee Act: fees: notice and timelines. Current Text: Introduced: 12/7/2020 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Repeals the code section pertaining to the 120 day statute of limitations for challenging new connection fees and impact fees and allows those fees to be paid under protest if a developer believes the fees to be unreasonably high. Memo May impact CPAU's ability to charge cost-based connection fees. The bill hasn't been acted upon since January and may not move forward. AB 332 (Committee on Environmental Safety and Toxic Materials) Hazardous waste: treated wood waste: management standards. Current Text: Amended: 3/26/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Reinstates the ability to dispose of treated wood waste (such as utility poles) at a landfill. AB 339 (Lee D) State and local government: open meetings. Current Text: Introduced: 1/28/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Would require all public meetings to include an opportunity for all persons to attend via a call-in option or an internet-based option that provides closed captioning services. Further requires: (1) that any teleconferenced meeting, even those held during a public health emergency, include an in-person public comment opportunity, where the public can report to a designated site to give public comment in person, and (2) agendas and instructions for accessing a meeting, whether teleconferenced or in person, shall be translated into all languages for which 5 percent of the population is a speaker, and (3) translators at public meetings. Memo Could mean significant costs to CPAU and the City for UAC and Council/other city meetings. CPAU Page 5/10 communicated our concerns to CMUA, who worked with the author's office. This bill hasn't moved since January and may not move forward. AB 602 (Grayson D) Development fees: impact fee nexus study. Current Text: Amended: 4/6/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Among other things, would require utility fees to be calculated on a development-by-development basis and would subject them to a square footage requirement. Memo Should be amended soon to exempt connection fees. AB 703 (Rubio, Blanca D) Open meetings: local agencies: teleconferences. Current Text: Introduced: 2/16/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Allows for additional flexibility for local city councils, boards, commissions, and other public agencies to hold public meetings remotely via video and teleconference. AB 758 (Nazarian D) Marks-Roos Local Bond Pooling Act of 1985: electric utilities: rate reduction bonds. Current Text: Amended: 3/11/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: A CMUA-sponsored bill that authorizes POUs to issue rate reduction bonds for utility projects. Memo CPAU submitted a letter of support. AB 853 (Stone D) Mountainous, forest-, brush-, and grass-covered lands: timber operations: clearings: notice: enforcement: limitations periods. Current Text: Amended: 3/25/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires "utility companies" (undefined) to provide 21 days notice to landowners before conducting vegetation management activities. The bill would provide a window for landowners to object to a "utility company" performing the work. Memo As currently written, it's not clear if the bill applies to POUs. We expect the bill to be narrowed significantly soon to focus on timber harvesting, probably for IOUs only. AB 1557 (Santiago D) Communications: utility pole attachments. Current Text: Amended: 3/18/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Directs "public utilities" to respond to a pole attachment request from a cable TV provider within 10 days if more information is needed and to let the provider know within 45 days if the request is accepted or denied. "Public Utilities" is undefined, probably refers to IOUs. SB 297 (Durazo D) Subsurface installations: penalties. Current Text: Amended: 3/25/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Page 6/10 Imposes a new $100,000 civil penalty on an operator or excavator who knowingly and willfully violates the Call Before You Dig Law and damages a gas or hazardous gas pipeline. SB 378 (Gonzalez D) Local government: broadband infrastructure development project permit processing: microtrenching permit processing ordinance. Current Text: Amended: 4/12/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Authorizes a fiber provider to determine the method of installing fiber in a city, including microtrenching. Memo NCPA, CMUA, and SCPPA have raised concerns with the author about potential impacts on safety and reliability of utility infrastructure if cities are not allowed to reasonably limit installation methods. CPAU has communicated to NCPA and CMUA our concerns about allowing microtrenching, a key aspect of the bill. SB 556 (Dodd D) Street light poles, traffic signal poles: small wireless facilities attachments. Current Text: Amended: 4/12/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires cities and electric POUs to make space and capacity on utility poles, street light poles, traffic signal poles, and supporting structures for telecom providers. Also adds language that attachment fees and cost estimates must be “nondiscriminatory” and “reasonable.” Memo Amendments coming later in April will remove all references to utility poles. SUSTAINABILITY AB 33 (Ting D) Energy Conservation Assistance Act of 1979: energy storage systems and transportation electrification infrastructure. Current Text: Amended: 3/16/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Through an existing account, this bill requires the CEC to provide grants and loans to local governments and public institutions to maximize energy use savings, expand installation of energy storage systems, and expand the availability of transportation electrification infrastructure. AB 970 (McCarty D) Planning and zoning: electric vehicle charging stations: permit application: approval. Current Text: Introduced: 2/18/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Provides that a residential charging station permit is approved within 15 days of submittal if certain criteria are met, including that the applicant has already obtained all required approvals from a POU. AB 1395 (Muratsuchi D) Greenhouse gases: carbon neutrality. Current Text: Introduced: 2/19/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Would declare the policy of the state to achieve carbon neutrality as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. Page 7/10 Memo sssss AB 1500 (Garcia, Eduardo D) Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2022. Current Text: Introduced: 2/19/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: If approved by voters, would provide bond funding to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, and workforce development programs. SB 31 (Cortese D) Building decarbonization. Current Text: Amended: 3/5/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires the CEC to identify and implement programs to promote existing and new building decarbonization. For POUS, the bill allows us to use funds set aside for low-income/demand-side management programs on building decarb IF the entity implementing the decarbonization project (whether CPAU or a contractor) and its subcontractors at every tier pay prevailing wages. SB 45 (Portantino D) Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood Protection Bond Act of 2022. Current Text: Amended: 4/8/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Enacts the Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood Protection Bond Act of 2022, which, if approved by the voters, would authorize bonds for $5.6 billion to finance projects for a wildfire prevention, safe drinking water, drought preparation, and flood protection program. SB 68 (Becker D) Building decarbonization. Current Text: Amended: 4/8/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Requires the CEC to gather or develop, and publish on its website, guidance and best practices to help building owners, the construction industry, and local governments overcome barriers to electrification of buildings and installation of EV charging equipment. WATER AB 100 (Holden D) Drinking water: pipes and fittings: lead content. Current Text: Amended: 4/5/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: This bill limits the amount of lead leaching from faucets and fixtures to no more than 1 microgram, which is five times lower than the current industry standard. AB 460 (Mayes I) Fire protection: residential fire sprinklers: fees. Current Text: Amended: 3/25/2021 html pdf Page 8/10 Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: This bill would, among other things, prohibit water-related fees imposed on the owner of residential property from being affected by the installation of a residential fire sprinkler system including those residential fire sprinkler systems mandated by a local jurisdiction or a fire protection district. Memo Two year bill. AB 588 (Garcia, Eduardo D) California Safe Drinking Water Act: compliance. Current Text: Amended: 3/30/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Consistent with federal law, requires the Water Board to establish a compliance period between 30 days and three years for meeting specified drinking water regulations. AB 1434 (Friedman D) Urban water use objectives: indoor residential water use. Current Text: Introduced: 2/19/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Starting in 2023, this bill would incrementally lower the standard for indoor residential water use until we reach 40 gallons per capita daily by January 1, 2030. The current standard has us at 50 gallons by 2030, or whatever number DWR studies recommend. This bill also eliminates the need for DWR to conduct any studies. Memo CMUA opposes. 2018's urban water use objectives haven’t gone into effect yet, so these proposed changes are troublesome and inappropriate. SB 222 (Dodd D) Water Rate Assistance Program. Current Text: Amended: 4/5/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Establishes the Water Rate Assistance Fund to help provide water affordability assistance, for both drinking water and wastewater services, to low-income ratepayers and ratepayers experiencing economic hardship. Long term funding mechanism is unclear. SB 223 (Dodd D) Discontinuation of residential water service. Current Text: Amended: 4/5/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Would prohibit water systems from discontinuing residential service for nonpayment during a state or local emergency. The bill would prohibit these systems from discontinuing residential water service for nonpayment until a payment by a customer has been delinquent for at least 120, rather than 60, days and the total amount of the delinquency, exclusive of late charges and interest, is at least $400. The bill would also prohibit these systems from discontinuing residential water service for nonpayment to a master-metered multifamily residence with at least 4 units or to a master-metered mobilehome park. The bill also requires water systems to waive fees for disconnection and reconnection of service to households with income below 200% of the federal poverty line. SB 323 (Caballero D) Local government: water or sewer service: legal actions. Current Text: Amended: 3/17/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Page 9/10 Summary: This bill creates a statute of limitations for legal challenges to water and sewer service charges that are adopted after January 1, 2022. SB 351 (Caballero D) Water Innovation Act of 2021. Current Text: Introduced: 2/9/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Sponsored by CMUA, this bill would create the Office of Water Innovation for the furtherance of new technologies and other innovative approaches in the water sector. By December 31, 2023,the Office shall take specified measures to advance innovation in the water sector. The bill would further create the Water Innovation Fund for the furtherance of water innovation. SB 427 (Eggman D) Water theft: enhanced penalties. Current Text: Amended: 4/12/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: Authorizes a local government to make any violation of a local ordinance regarding water theft subject to an administrative fine in excess of current legal limits. SB 526 (Min D) Community water systems: lead user service lines. Current Text: Introduced: 2/17/2021 html pdf Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Conc.Enrolled Vetoed Chaptered1st House 2nd House Summary: This bill would, until January 1, 2025, require a community water system to remove or replace the full lead user service line, if the water system disturbs, removes, or replaces a portion of the line. There is no definition of “full lead service line” in the bill but that typically includes the lateral from the meter to the home. Memo Bill should be amended later in April to include a definition, which may focus on goosenecks and similar parts rather than lines. Total Measures: 48 Total Tracking Forms: 48 Page 10/10