HomeMy WebLinkAboutRESO 9322Resolution No. 9322
Resolution of the Council of the City of Palo Alto Approving a Carbon
Neutral Plan for the Electric Supply Portfolio to Achieve Carbon
Neutrality by 2013
A. In an effort to combat climate change in December 2007 the City of Palo Alto ("City")
adopted the Climate Protection Plan, which set aggressive greenhouse gas (GHG) emission
reduction goals to be achieved by the year 2020.
B. In March 2011, the City unanimously approved the Long-term Electric Acquisition
Plan (LEAP) a strategic planning document focused on how the City's Utilities Department (CPAU)
can successfully balance environmental and economic sustainability as it provides electric service
to CPAU customers. LEAP was updated in April 2012 through Resolution 9241.
. . c. In accordance with the LEAP Climate Protection Strategy #5 to reduce the electric
portfolio's carbon intensity, staff evaluated the costs, benefits and impacts ofthe implementation
of an electric portfolio carbon neutral policy and the setting of quantitative goals. Staffs
preliminary findings were presented to the Utilities Advisory Commission ("UAC"), Finance
Committee and Council and in May 2012, the City Council directed staff to develop a plan to
achieve carbon neutrality for the electric supply portfolio by January 2015 (Staff report 2525).
D. On November 5, 2012, Council approved (Staff Report 3194) the following
definition of carbon neutrality for the City's electric supply portfolio: A carbon neutral electric
supply portfolio will demonstrate annual net zero greenhouse gas (GHG) emissions, measured
at the Citygate, in accordance with The Climate Registry's Electric Power Sector protocol for
GHG emissions measurement and reporting.
E. Staff presented the Carbon Neutral Plan to the UAC on December 5, 2012 and
the UAC voted unanimously (six in favor and one absent) to recommend that the City adopt the
Carbon Neutral Plan.
F. On December 16, 2012, UAC Commissioners JamesCook (Chair), Steve Eglash and
John Melton presented a Commissioner's Memorandum to request the Carbon Neutral Plan be
revisited. The Commissioners Memorandum was discussed at the January 9,2013 UAC meeting
and the UAC voted (four in favor, two opposed and one absent) to recommend to Council that the
Carbon Neutral Plan's rate cap be reduced from 0.25 cents/kWh to 0.15 cents/kWh.
G. Subsequent to the January 2013 UAC meeting, staff revised its spending cap
recommendation to limit any future electric rate impact to 0.15 cents/kWh.
H. On February 5, 2013, the Finance Committee voted unanimously (four in favor)
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to approve the revised Carbon Neutral Plan, which includes the 0.15 cents/kWh rate cap.
The Council ofthe City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby adopts the resolution approving the Carbon Neutral
Plan as provided for in Exhibit A.
SECTION 2. The Council directs staff to return to the UAC and the Council in the event
that the cost of City's achievement of carbon neutrality for the electric supply portfolio would
exceed an electric retail rate impact of 0.15 cents/kWh.
SECTION 3. The Council finds that any eventual changes to the City's electric rates
impacted by Council's adoption of the Carbon Neutral Plan shall not create special taxes
because such rates shall be charges imposed for a specific government service or product
provided directly to the payor that are not provided to those not charged, and which shall not
exceed the reasonable costs to the City of providing the service or product.
SECTION 4. The Council finds that the adoption ofthis resolution does not constitute
a project under Section 21065 of the California Environmental Quality Act (CEQA) and the CEQA
Guidelines, and therefore, no environmental assessment is required.
INTRODUCED AND PASSED: March 4, 2013
AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT:
ABSTENTIONS:
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Deputylity Attorney
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Mayor
APPROVED: