HomeMy WebLinkAboutRESO 9013Resolution No. 9013
Resolution of the City of Palo Alto Recognizing the Potential
Impacts of Climate Change on Palo Alto and the Externality
Costs Associated with the Burning of Fossil Fuels and
Acknowledging the Importance of True-Cost Pricing
WHEREAS, adapting to climate change caused by burning fossil fuels will
likely cost California billions of dollars per year, according to the Governor's
Climate Action Team; and
WHEREAS, externality costs are hidden costs associated with the
production, transportation, use and disposal of goods and services that mask their
true costs; and
WHEREAS, externality costs place an unfair burden on society as a whole
and future generations that. will bear the hidden costs of current consumer
practices; and
WHEREAS, externality costs give an unfair market advantage to products
and services with high hidden costs and penalize products and services with low
hidden costs; and
WHEREAS, externality costs often create unfunded liabilities; and·
WHEREAS, burning fossil fuels costs the United States about $120 billion
per year in health costs, mostly due to premature deaths caused by air pollution,
according to the National Academy of Sciences; and
WHEREAS, in a fair market-based economy, prices should reflect the true
costs of products and services; and
WHEREAS, true-cost pricing incorporates externality costs into the price
of products and services so as to reflect their hidden costs; and
WHEREAS, the movement to true cost pricing represents a dramatic shift
in current utility pricing policy in the United States; and
WHEREAS, the City recognizes that significant dialogue and review with
the community, Utility Advisory Commission, our customers and other key
stakeholders would be necessary to understand effective true-cost pricing.
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NOW, THEREFORE, the Council of the City of Palo Alto does hereby
RESOLVE as follows:
SECTION 1. The City Council recognizes the externality costs associated
with burning fossil fuels for energy production and transportation. the City
Council hereby acknowledges and accepts the concept of true-cost pricing in
which externality costs are incorporated into price structures whenever possible.
INTRODUCED AND PASSED: December 7, 2009
AYES: BURT, DREKMEIER, ESPINOSA,· KISHIMOTO, KLEIN,
SCHMID, YEH.
NOES:
ABSENT: BARTON, MORTON
ABSTENTIONS:
ATTEST: APPROVED:
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APPROVED AS TO FORM:
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