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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 141216 mf 6053123 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: ~~ fJmul 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. Page 1 ofl5 DocuSign Envelope 10: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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. Page 2 of15 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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 Page 3 of15 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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 Page 4 of15 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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 Page 5 of15 DocuSign Envelope 10: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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 Page 6 ofl5 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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. Page 7 of15 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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 Page 8 ofl5 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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 Page 9 of15 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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 Page 10 of15 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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 Page 11 of15 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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 Page 12 ofl5 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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. Page 13 of15 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7-54C99A0893E3 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. Page 14 ofl5 DocuSign Envelope ID: 6ABB2F73-73BC-44C3-B5E7 -54C99A0893E3 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 \ Docu~ iii SICUIIIIJ Certificate Of Completion Envelope Number: 6ABB2F7373BC44C3B5E754C99A0893E3 Status: Completed Subject: Please DocuSign these documents: RESO 9498 Utilities Legislative Policy Guidelines Attachment A ( ... Source Envelope: Document Pages: 17 Certificate Pages: 5 AutoNav: Enabled Envelopeld Stamping: Enabled 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 Timestamp Sent: 6/18/2015 9:13:28 AM PT Viewed: 6/18/2015 9:15:42 AM PT Signed: 6/18/2015 9:18:08 AM PT Sent: 6/18/2015 9:18:10 AM PT Viewed: 6/18/2015 9:20:16 AM PT Signed: 6/18/2015 9:20:28 AM PT Sent: 6/18/2015 9:20:30 AM PT Viewed: 6/18/201510:33:02AM PT Signed: 6/18/2015 10:33:18 AM PT Sent: 6/18/2015 10:33:20 AM PT Viewed: 6/26/20151:11:08 PM PT Signed: 6/29/2015 8:03:26 PM PT Timestamp Timestamp