HomeMy WebLinkAboutRESO 9498DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3
Resolution No. 9498
Resolution of the Council of ~he City of Palo Alto Approving the City
of Palo Alto Utilities Legislative Policy Guidelines
RECITALS
A. The City of Palo. Alto Utilities Strategic Plan r'Strategic Plan"), approved by the
Palo Alto City Council on July 18, 2011, (Staff Report #1880), and amended on August 5, 2013,
(Staff Report #3950), provides a set of Strategic Objectives for the City of Palo Alto Utilities
Department (CPAU) to follow in ensuring a reliable and safe supply of utility resources,
providing customer service excellence, managing costs, and ensuring environmental
sustainability.
B. CPAU annually identifies Utilities' Legislative Policy Guidelines that facilitate the
Strategic Plan's Strategic Objectives, and advocates for utility-related issues at Federal and
State legislative forums in furtherance of those objectives.
C. Action on some of these issues may require active involvement of Palo Alto
elected and appointed officials.
D. The Utilities' Legislative Policy Guidelines were presented to the UAC at its
December 10, 2014 meeting. Due to a self-identified conflict of interest stated by
Commissioner Hall, the recommendation was split into two items to allow the Commissioner to
participate in the discussion regarding all the utilities except the water utility. Agenda Item 5
recommended approval of the guidelines for all utilities except the water utility, and Item 6
recommended approval of the water utility guidelines. In response to clarifying questions from
the UAC, staff made two minor changes to the water guidelines to clarify that groundwater
related efforts will focus on the Palo Alto area and that support for 'beneficiary pays' cost
allocation for infrastructure improvements should be on the state and regional level. The UAC
voted unanimously (6-0 with Commissioner Chang absent) to recommend that the City Council
approve the Utilities' Legislative Policy Guidelines for all utilities except the water utility. The
UAC voted unanimously (5-0 with Commissioner Chang absent and Hall recused) to recommend
that the City Council approve the Water Utility's Legislative Policy Guidelines.
The Council of the City of Palo Alto RESOLVES, as follows:
SECTION 1. The Council hereby adopts the resolution approving the Utilities
Legislative Policy Guidelines, effective January 1, 2015. All prior versions of the City of Palo Alto
Utilities Legislative Policy Guidelines, including the Legislative Policy Guidelines for 2014,
adopted by Council on January 12, 2014 (Resolution No. 9388) are hereby repealed and
1
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DocuSign Envelope ID: 6ABB2F73-73BC-44C3~B5E7-54C99A0893E3
replaced in their entirety by the Utilities Legislative Policy Guidelines, attached to this
Resolution as Exhibit A.
SECTION 2. Staff will review the Guidelines annually and any proposed changes will
be approved by City Council.
SECTION 3. The Council finds that the adoption of this 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 2, 2015
AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID,
WOLBACH
NOES:
ABSENT:
ABSTENTIONS:
~&M/
City Clerk
APPROVED AS TO FORM:
~DocuSigned by:
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DOB48f31ZfQ342B
Sr. Deputy City Attorney
141216 mf 6053123
2
,
Mayor
APPROVED:
QDocuSigned by:
£f•A1trl'
39E7298FB2064DB ...
City Manager
Director of Utilities
Director of Administrative
Services
DocuSign Envelope I D: 6ABB2F73-73BC-44C3-B5E7 -54C99A0893E3
Utilities legislative Policy Guidelines January 2015 Update
Exhibit A
Utilities' Legislative Policy Guidelines
Formal advocacy positions taken in alignment with these guidelines will be subject to the
approval of the Utilities Director or City Manager as per the City's legislative Program Manual
ALL UTILITIES
Goals
1. Preserve/enhance local accountability in the control and oversight of matters impacting utility
programs and rates for our customers while balancing statewide climate protection goals.
2. Support efforts to maintain or improve the reliability of the supply, transmission, storage and
distribution/collection infrastructures.
3. Support legislation that makes bold progress in cost effectively reducing greenhouse gas (GHG)
emissions, and recognizes early voluntary action.
4. Maintain the City of Palo Alto Utilities' (CPAU's) ability to provide safe, reliable, sustainable, and
competitively-priced utility services.
Advocate goals through active
participation in joint action
efforts.
2. Support legislation that will Federal,
result in the most cost-effective State, and
reduction of GHG emissions, Regional
recognition of early action, and
inclusion of more efficient
solutions, fuel switching, and
demand control programs, in
integrated resource plans.
3. Promote utility legislation and Federal,
regulations that have State, and
undergone stakeholder review Regional
Reliability and applicable cost benefit Councils
analysis to support reasonable
reliability standards and
compliance requirements, and
effective and consistent
reporting requirements,
customer communications, and
goal-setting.
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Utilities Legislative Policy Guidelines January 2015 Update
Oppose cost shifts from Federal
or State budgets and California
Public Utilities Commission
(CPUC) jurisdictional utilities
through active participation in
CMUA and NCPA legislative
activities.
5. Advocate for State and Federal Federal
grants for local and regional and State
measures regarding energy
efficiency, conservation,
renewable resources, fiber, fuel
switching, wastewater
collection systems and recycled
water projects.
6. Maintain right of way access Federal
for utility infrastructure. and State
7. Protect the value of existing Federal
assets and contracts and local and State
regulatory approvals of sail} e.
8. Maintain existing low cost Federal
municipal financing options for and State
infrastructure projects and
advocate for new federal and
state programs that recognize
critical infrastructure needs.
9. Promote utility legislation and Federal
regulations that support and State
reasonable and consistent
notification, compliance, and
reporting requirements for
services, communications,
billing and payments.
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Utilities Legislative Policy Guidelines January 2015 Update
ELECTRIC
Goals
1. Preserve/enhance the ability of municipal utilities to exercise local accountability and oversight over
matters impacting customer service, programs (such as demand side efficiency and conservation
programs), and rate structure.
2. Preserve/enhance the reliability and security of infrastructure.
3. Support legislation that makes bold progress in cost effectively reducing GHG emissions and
encourages early voluntary action.
4. Preserve just and reasonable utility rates/bills established by local governing bodies.
Advocate goals through Northern California
Power Agency (NCPA), California Municipal
Utilities Association (CMUA), American Public
Power Association {APPA), Transmission
Agency of Northern California (TANC), and Bay
Area Municipal Transmission Group (BAMx)
with support from Palo Alto staff to speak
a coordinated voice.
Support NCPA in its continued efforts to
streamline the state regulatory reporting
responsibilities, to eliminate duplicative data
and report submittals to multiple state
regulatory agencies, including the CEC, CARB,
and the California Independent System
Operator (CAISO).
Advocate for legislation/regulations that
provide local accountability and support for:
• cost-effective clean distributed generation
and cogeneration projects, and standards
and permitting requirements for
connecting such resources to the local
distribution system;
• balancing state and local policy
implementation and ratepayer equity;
• equitable rate design and tariffs;
• cost-effective electric efficiency programs;
• implementation of renewable portfolio
standards;
• cost-effective storage integration;
• direct access requirements;
State
Federal and
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Utilities Legislative Policy Guidelines
• smart meters and smart grid design and
implementation; and
• use of public benefit funds (as allowed in
AB 1890
Support cap-and-trade market designs that:
• protect consumers from the exercise of
market power;
• allocate allowances that help mitigate
impacts to Palo Alto customers while
providing incentives for utilities to move to
lower GHG emission portfolios;
• provide flexible compliance mechanisms
such as banking and borrowing of
allowances; and
• allocate funds generated from cap-and-
trade markets to GHG related activities, not
as a revenue source for state or federal
neral fu
Support legislation for renewable portfolio
standards that:
• promote the 33% goal for the state;
• maintain local compliance authority;
• allow utilities to pursue low cost
alternatives by utilizing the existing
transmission system to access out-of-state
resources, including use
of Renewable Energy Certificates (RECs);
• ensure fair application of RPS standards
that avoid punitive and/or duplicative non-
compliance penalties;
• restrict extension of CEC jurisdiction over
Publicly Owned Utilities;
• consolidate GHG reduction goals and
Renewable Portfolio Standards under one
clean energy standard;
• allow the counting of local distributed
generation towards RPS; and
• prioritize the use of the existing
transmission system over building new
transmission.
Federal and
Local and
State,
and Federal
January 2015 Update
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Utilities Legislative Policy Guidelines
solutions/options for projects that:
• enhance/ensure reliability;
• ensure equitable cost allocation following
beneficiary pays principles (including
protection against imposition of state-
owned electric contract costs on municipal
utility customers);
• improve procurement flexibility (e.g.
resource adequacy rules that ensure
reliability and provide flexibility in meeting
operational requirements or flexibility in
meeting State renewable portfolio
standards);
• support the continuation of federal and
state financial incentives that promote
increased renewable development;
• improve market transparency (pqrticularly
transparency of lOU's transmission and
procurement planning and implementation
activities); and
• reduce the environmental impact on the
Area and the Peninsula.
Advocate for Congressional, legislative, or
administrative actions on matters impacting
costs or operations of the Western Area
Power Administration (Western) such as:
• support of Congressional Field Hearings to
explore modernizing flood control
strategies, river regulation and generation
strategies at Central Valley Project (CVP)
plants to enhance generation, water
delivery, flood control and fisheries;
• protection of the status of Western Power
Marketing Administration and cost-based
rates;
• provisions for preference customers' first
take at land available with economic
potential for wind farms;
• balancing efforts for competing
environmental improvements in rivers and
Delta conditions with water supply and
hydropower impacts;
• achieving the grid modernization goals of
Secretary Chu's March 16, 2012 memo
Federal,
and
Regional
January 2015 Update
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Utilities Legislative Policy Guidelines
without compromising the primary mission
of Western and recognizing the
achievements already made in California
without adding duplicate costly efforts;
• monitoring and evaluating impacts of Delta
conveyance proposals on Western Base
Resource allocation; and
• advocating for an equitable distribution of
costs between water and power customers
of the Central Val ect.
Advocate for Congressional, legislative, or
administrative actions on matters relating to
overly burdensome reporting and compliance
requirements established by the North
American Reliability Corporation (NERC), the
Federal Energy Regulatory Commission (FERC)
or the Western Electricity Coordinating
Council (WECC).
Federal,
State and
onal
Support fair and reasonable application of grid Federal and
reliability requirements established by NERC, Regional
WECC, or FERC and seek Congressional
remedies (if needed) for punitive application
of fees and fines.
Work with CAISO or through FERC:
• to give buyers of renewable intermittent
resources relief from imbalance penalties;
• to promote financial and operational
changes that result in timely and accurate
settlement and billing; and
• to provide critical input on the need for
various transmission projects in light of the
escalating costs to the City to import powe
using the bulk transmission
1. Monitor cyber security issues to ensure that
CPAU, which currently does not have critical
cyber assets, retains local control over its
cyber security needs while remaining exempt
from NERC cyber security standards. Support
NCPA to protect it and its member agencies
from unnecessary cyber security regulations.
Federal and
State
Federal and
Regional
January 2015 Update
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Utilities Legislative Policy Guidelines January 2015 Update
FIBER OPTIC
Goals
1. Preserve and enhance the authority of local government to develop broadband solutions that align
with community needs and expand consumer choice for competitive Internet connectivity and other
advanced services delivered over fiber-optic networks.
2. Encourage the competitive delivery of broadband services by permitting the use of public rights-of-
way and Utilities infrastructure in a responsible manner, provided that local rights of way authority
and management is preserved and the use does not compromise the City's existing utility safety and
services obligations.
3. Support local government authority over zoning-related land use for communications infrastructure
in accordance with reasonable and non-discriminatory regulations.
4. Support the Council's Technology and the Connected City initiative to fully leverage the City's fiber-
optic asset.
American Public Power Association
(APPA), California Municipal Utilities
Association (CMUA), National
Association of Telecommunications
Officers and Advisors (NATOA),
National League of Cities (NLC), and the
Next Century Cities initiative (NCC),
with support from City staff.
2. Support legislation and regulations that Federal
preserve and enhance municipal and State
delivery of conventional and advanced
telecommunication services as
prescribed by the Telecommunications
Act of 1996.
3. Support the goals of the National
Broadband Plan, issued in 2010 bythe
Federal Communications Commission
(FCC), to improve Internet access in the
United States
4. Oppose legislation and regulations that Federal
benefit the incumbent cable TV and and State
telephone companies at the expense of
community-owned fiber-optic and
wireless networks.
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Utilities Legislative Policy Guidelines
preserve and enhance consumer
protections when dealing with the
incumbent providers of
telecommunication services.
6. Support legislation and regulations
that encourage the competitive
delivery of broadband services by
permitting the use of public right-of-
way and Utilities infrastructure:
• Support legislation and regulations
that preserve local rights-of-way
authority and management;
• Support legislation and regulations
that preserve local government
zoning and siting authority for
wireless and wireline
communication facilities; and
• Oppose legislation and regulations
that reduce compensation received
by local governments for the use of
the public rights-of-way and other
public properties that support
communication infrastructure (e.g.,
utility poles, streetlight poles, ducts
and conduits).
Federal,
and
local
January 2015 Update
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Utilities Legislative Policy Guidelines January 2015 Update
NATURAL GAS
Goals
1. Preserve/enhance the ability of municipal utilities to develop their own demand side efficiency and
conservation programs, alternative gas supplies, and rate structure.
2. Increase the security and reliability of the gas supply and transmission infrastructure. This includes
retaining access to intra-and interstate gas transmission systems to reliably serve customers.
3. Support efforts to reduce greenhouse gas emissions and protect the environment.
4. Preserve just and reasonable utility rates/bills established by local governing bodies.
Advocate most of these goals
mainly through the American
Public Gas Association {APGA) with
minor support from Palo Alto staff.
2. Work with Northern California
PowerAgency{NCPA)and
California Municipal Utilities
Association (CMUA) to the extent
that the City's goals as a gas
distributor align with generators'
use of natural gas.
3. Support cost effective renewable Federal and
gas supplies from in or out of state State
sources.
4. Advocate for financing or funding land
for cost-effective natural gas
efficiency and solar water heating
end uses.
5 .. Support market transparency and Federal
efforts to eliminate market
manipulation through reasonable
oversight.
6. Support municipal utilities' ability Federal
to enter into pre-pay transactions
for gas supplies.
7. Support efforts to improve pipeline Federal and
safety. State
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Utilities Legislative Policy Guidelines
Work with partners to discourage
extension of CPUC regulatory
authority over municipal gas
operations.
9. Oppose legislative proposals
resulting in unreasonable costs for
Palo Alto's customers.
10. Support cap-and-trade market
designs that:
• protect consumers from the
exercise of market power;
• allocate allowances that help
mitigate impacts to Palo Alto
customers while providing
incentives for natural gas
utilities to move to lower GHG
emission portfolios;
• advocate for an allowance
allocation methodology that
provides flexibility for Palo Alto
to structure rates to align GHG
costs and revenues;
• provide flexible compliance
mechanisms such as banking
and borrowing of allowances;
and
• allocate funds generated from
cap-and-trade markets to GHG
related activities, not as a
revenue source for state or
federal neral funds.
11. Support legislation that aims to
protect public health and
encourages transparency regarding
the practice of hydraulic fracturing
or "fracking" for natural gas
development, but not blanket
moratoriums that aren't supported
by science.
Federal and
State
January 2015 Update
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Utilities Legislative Policy Guidelines January 2015 Update
WASTEWATER COLLECTION
Goals
1. Support ability of municipal utilities to develop and manage their own conservation and efficiency
programs and retain authority over ratemaking, including the imposition of non-volumetric
customer meter or infrastructure charges for wastewater collection service.
2. Increase the reliability ofthe local wastewater collection systems.
3. Maintain the provision of reliable and sustainable wastewater collection service at a fair price.
4. Support equal comparisons of wastewater collection systems by regulatory agencies in order to
minimize and reduce onerous, costly and time-intensive reporting requirements and improve value
and accuracy of information reported to the public.
Advocate goals through active
participation in the Association of
Bay Area Governments (ABAG).
2. Support future regulations of Local,
wastewater collection systems that Regional
recognize: & State
• local jurisdictions' proactive
efforts to replace and maintain
wastewater collections
systems;
• the need to provide affordable
and cost based collection
service; and
• the unique characteristics of
each collection
3. Support provision of sufficient Local and
resources for regional agencies to Regional
enable them to advocate for:
• environmentally sustainable,
reliable wastewater collection
service at a fair price; and
• regional comparisons of
wastewater collection projects
for future state fundi
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Utilities Legislative Policy Guidelines
Support infrastructure security and
reliability including equitable
allocation of funds for increasing
the security of infrastructure.
5. Advocate for funding and local
regulations for wastewater
collections system projects and
requirements that reduce
overflows and improve collection
system efficiency.
Regional,
State and
Federal
January 2015 Update
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Utilities Legislative Policy Guidelines January 2015 Update
WATER
Goals
1. Support ability of municipal utilities to develop and manage their own conservation and efficiency
programs and retain authority over ratemaking, including the ability to optimize volumetric and
fixed charges to balance the goals of revenue certainty and water use efficiency.
2. Increase the security and reliability of the regional water system owned and operated by the San
Francisco Public Utilities Commission (SFPUC).
3. Support efficiency and recycled water programs in order to minimize the use of imported supplies.
4. Maintain the provision of an environmentally sustainable, reliable supply of high quality water at a
fair price.
Advocate goals through active
participation in the Bay Area Water Supply
and Conservation Agency (BAWSCA) and
California Municipal Utilities Association
(CMUA), with support from Palo Alto staff
for BAWSCA
2. Participate in California Urban Water
Conservation Council (CUWCC) Best
Management Practice (BMP) revisions and
development to ensure that aggressive
and cost-effective efficiency goals are
incorporated and operating proposals are
reasonable, achievable, and cost-effective.
State
3. Advocate to ensure that legislative actions Local,
regarding the Hetch Hetchy Regional Regional
Water System include the following and State
requirements:
• timely rebuilding ofthe regional water
system;
• maintains the quality of delivered
water;
• minimizes any increase in the cost of
water;
• creates no additional exposure to
more frequent or severe water
shortages;
• supports the existing water system and
its o ration.
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Utilities Legislative Policy Guidelines January 2015 Update
Advocate for interpretations or
implementation of Water Code provisions
(such as those enacted by AB 1823 {2002),
AB 2058 (2002} and SB 1870 {2002}} that
maintain or reinforce the authorities and
protections available to the City and
BAWSCA members outside of San
Francisco.
5. Support provision of sufficient resources Local and
for BAWSCA to enable it to advocate for: Regional
• an environmentally sustainable,
reliable supply of high quality water at
a fair price;
• a SFPUC rate structure that is
consistent with the Water Supply
Agreement and is based on water
usage;
• a contract amendment to modify the
drought time water allocation
between the SFPUC and the BAWSCA -------
agencies;
• preservation of Palo Alto's existing
contractual water allocation and
transportation rights on the SFPUC
Hetch Hetchy system; and
• regional planning for conservation,
recycled water, and other water supply
6. Advocate for actions that: Local and ./
• preserve Palo Alto's existing Regional
contractual rights; and
• preserve local control over water use
and limit encroachment from outside
urisdictions.
7. Support infrastructure security and Regional
reliability including an interconnection and State
between the SCVWD West Pipeline with
the SFPUC's Bay Division Pipelines 3 and 4.
8. Support notification requirements that State
inform residents/customers but do not
inflict undue or unobtainable requirements
on the utility.
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Utilities Legislative Policy Guidelines
9. Support local control of public benefit
funds funding levels and program design.
10. Support beneficiary pays methodologies to
prevent taxes or fees, in particular those
imposed on SFPUC customers, to fund
infrastructure improvements and costs of
other water sources such as the Delta.
11. Advocate for financing or funding for
water conservation programs and recycled
water projects that meet end-use needs
and conserve potable water and oppose
legislation that would reduce such funding.
12. Support infrastructure security and
reliability that includes equitable allocation
of funds for increasing the security of
infrastructure and that protects the City
from unnecessary regulations.
13. Support legislation that promotes
responsible groundwater management
while recognizing Palo Alto's existing and
historical groundwater extraction
practices.
14. Support Proposition 218 reform efforts to
provide ratemaking flexibility to balance
conservation, revenue sustainability, and
low income programs.
State and
Regional
State,
Regional
and
Federal
Local,
State and
Federal
State
State
January 2015 Update
Page 15 of15
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Certificate Of Completion
Envelope Number: 6ABB2F7373BC44C3B5E754C99A0893E3 Status: Completed
Subject: Please DocuSign these documents: RESO 9498 Utilities Legislative Policy Guidelines Attachment A ( ...
Source Envelope:
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Record Tracking
Status: Original
6/18/2015 9:08:52 AM PT
Signer Events
Amy Bartell
Amy.Barteii@CityofPaloAito.org
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Accepted: 6/18/2015 9:15:42 AM PT
ID: 39c351 d6-a1fe-447 4-a238-58e9246d3528
Lalo Perez
Lalo.Perez@CityofPaloAito.org
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Accepted: 6/18/2015 9:20:15 AM PT
I D: 43d 1 Oc84-7b05-4339-87fa-3bafce 7 e38a3
Valerie Fong
Valerie.Fong@CityofPaloAito.org
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Accepted: 6/18/2015 10:33:02 AM PT
ID: 39c37985-e007 -4805-8569-ae5dae511 OfO
James Keene
james.keene@cityofpaloalto.org
City Manager
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Accepted: 4/14/2015 5:40:07 PM PT
ID: 44fe333a-6a81-4cb 7 -b 7d4-9254 73ac82e3
In Person Signer Events
Editor Delivery Events
Signatures: 4
Initials: 0
Holder: Kim Lunt
kimberly.lunt@cityofpaloalto.org
Signature
Using IP Address: 199.33.32.254
lt. OocuSigned by: ~0~~ ••
Using IP Address: 199.33.32.254
~:l:~df~~
10583588F83E412 ...
Using IP Address: 199.33.32.254
Using IP Address: 199.33.32.254
Signature
Status
Envelope Originator:
Kim Lunt
250 Hamilton Ave
Palo Alto , CA 94301
kimberly.lunt@cityofpaloalto.org
IP Address: 199.33.32.254
Location: DocuSign
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Signed: 6/29/2015 8:03:26 PM PT
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