HomeMy WebLinkAboutRESO 9668170131 jb 6053903 January 2017 Update
Resolution No. 9668
Resolution of the Council of the City of Palo Alto Approving the City of Palo Alto
Utilities Legislative Policy Guidelines
R E C I T A L S
A. The City of Palo Alto
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.cilitate the
, and advocates for utilityrelated 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.
January 11, 2017 meeting, and the UAC voted unanimously to recommend that the City Council
The Council of the City of Palo Alto hereby RESOLVES as follows:
SECTION 1. The Council hereby adopts the resolution approving the Utilities
Legislative Policy Guidelines, effective February 13, 2017. All prior versions of the City of Palo
Alto Utilities Legislative Policy Guidelines are hereby repealed and replaced in their entirety by
the Utilities Legislative Policy Guidelines, attached to this Resolution as Exhibit 1.
SECTION 2. Staff will review the Guidelines annually and any proposed changes will
be approved by City Council.
SECTION 2. The Council finds that the adoption of this resolution is not a project
requiring California Environmental Quality Act (CEQA) review, under California Public Resources
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170131 jb 6053903 January 2017 Update
Code Sec. 21065, 21080(b)(8), and CEQA Guidelines Section 15378(b)(5), because it is an
administrative governmental activity which will not cause a direct or indirect physical change in
the environment.
INTRODUCED AND PASSED: February 13, 2017
AYES: DUBOIS, FILSETH, FINE, HOLMAN, KNISS, KOU, SCHARFF, TANAKA,
WOLBACH
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Senior Deputy City Attorney City Manager
Assistant City Manager/Utilities
General Manger
Director of Administrative Services
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EXHIBIT A
Approved by City Council on January 13, 2017; Resolution No. 9668
Legislative Policy Guidelines
Formal advocacy positions taken in alignment with these guidelines will be subject to the
approval of the Utilities General Manager or City Manager.
ALL UTILITES
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 government action that makes bold progress in cost effectively reducing greenhouse gas
(GHG) emissions, supporting electrification efforts, and recognizes early voluntary action advancing
both.
4.
competitivelypriced utility services.
Goals
Legislative Policy
Guidelines
Venue
1. Local 2. Reliability
&
Infrastructure
3. Climate 4. Service &
Cost
Control
1. Advocate goals through active
participation in joint action
efforts, including supporting
the efforts of common goals
through external organizations
Federal,
State, and
Regional
2. Support legislation that results
in locally designed, cost
effective and efficient solutions
to the goal of GHG emissions
reductions.
Federal,
State, and
Regional
3. Promote legislation and
regulations that have
undergone stakeholder review
and cost benefit analysis to
support effective and
consistent reporting
requirements, customer
communications, and program
results
Federal,
State, and
Regional
Reliability
Councils
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Goals
Legislative Policy
Guidelines
Venue
1. Local 2. Reliability
&
Infrastructure
3. Climate 4. Service &
Cost
Control
4. Oppose unreasonable and
inequitable financial burdens
and support policy changes that
assist customers through active
participation in the legislative
activities of the Northern
California Power Agency (NCPA)
and the California Municipal
Utilities Association (CMUA).
Federal,
State, and
CPUC
5. Advocate for state and federal
grants for local and regional
energy efficiency and
conservation measures,
renewable resources, fiber, fuel
switching, wastewater collection
systems and recycled water
projects.
Federal
and State
6. Maintain right of way access for
utility infrastructure.
Federal and
State
7. Protect the value of existing
assets and contracts and
local regulatory approvals of
same.
Federal
and State
8. Support government action
allowing CPAU to maintain
customer confidentiality.
State
9. Maintain existing low cost
municipal financing options for
infrastructure projects and
advocate for new federal and
state programs that recognize
critical infrastructure needs.
Federal
and State
10. Promote utility legislation and
regulations that support
reasonable and consistent
notification, compliance, and
reporting requirements for
operations, services,
communications, billing and
payments.
Federal
and State
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Goals
Legislative Policy
Guidelines
Venue
1. Local 2. Reliability
&
Infrastructure
3. Climate 4. Service &
Cost
Control
11. Through Account
Representatives, educate key
customer accounts about
significant policy actions that
could affect their business
Local
12. Oppose government action
that could adversely impact
our customers or that include
mandates we could not
reasonably achieve.
Federal
and State
10. Support capandtrade
market designs that:
protect consumers from
the exercise of market
power;
allocate allowances that
mitigate impacts to Palo Alto
customers while preserving
City environmental goals;
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 capandtrade
markets to GHG related
activities, not as a revenue
source for state or federal
general funds.
State
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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, local oversight, and security of infrastructure.
3. Support legislation that recognizes early voluntary action to combat climate change including
initiatives to reduce GHG emissions and specifically exempts a municipality from
burdensome requirements in subsequent legislation that could result from the early action.
4. Preserve just and reasonable utility rates/bills established by local governing bodies.
Goals
Legislative Policy Guidelines Venue
1. Local 2.
Reliability
3. GHG 4. Cost
Control
1. Advocate goals through NCPA, CMUA,
American Public Power Association (APPA),
Transmission Agency of Northern California
(TANC), and the Bay Area Municipal
Transmission Group (BAMx) with support from
Palo Alto staff to speak with a coordinated
voice.
Federal and
State
2. Support NCPA in its continued efforts to
streamline 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).
State
3. Advocate for legislation/regulations that
provide local accountability and support for:
locallydesigned and implemented solar
programs and rates
development of longterm plans and
reasonable and flexible integrated
resource planning requirements
development of distributed energy
resources and plans, and standards and
permitting requirements for connecting
such resources to the local distribution
system;
transparent and consistent accounting
and reporting of CHG emissions and
portfolio content;
balancing state and local policy
Federal and
State
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Goals
Legislative Policy Guidelines Venue
1. Local 2.
Reliability
3. GHG 4. Cost
Control
implementation and ratepayer equity;
equitable rate design and tariffs;
costeffective electric efficiency and
demandside management programs;
implementation of renewable portfolio
standards in a reasonable manner;
costeffective and locally beneficial
storage;
direct access;
advanced meters and smart grid design and
implementation;
use of public benefit funds (as allowed in
AB 1890 (1996); and
Electrification, including electric vehicle
infrastructure
4. Support legislation for renewable portfolio
standards that:
maintain local compliance authority;
avoid mandates for technology or source
specific carve outs;
allow utilities to pursue the most cost
effective resources available to meet
portfolio needs including use
of Renewable Energy Certificates (RECs);
ensure fair application of RPS standards,
avoiding punitive and/or duplicative non
compliance penalties;
restrict extension of CEC jurisdiction and
attempts of the CPUC to claim jurisdiction
or obtain de facto jurisdiction over
Publicly Owned Utilities;
allow local distributed generation to
count in full towards RPS; and
prioritize the use of the existing
transmission system over building new
transmission.
Local and
State
5. Support/encourage transmission, generation,
and demandreduction projects and solutions
including advocating for financing or funding
solutions/options for projects that:
enhance/ensure reliability;
ensure equitable cost allocation following
beneficiary pays principles (including
protection against imposition of state
Local, State,
and Federal
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Goals
Legislative Policy Guidelines Venue
1. Local 2.
Reliability
3. GHG 4. Cost
Control
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 (particularly
transparency of transmission and
procurement planning and
implementation); and
reduce the environmental impact on
the Bay Area and the Peninsula.
6. Advocate for actions on matters impacting
the Western Area Power Administration
(Western) such as:
support Congressional hearings to explore
modernizing 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 costbased
rates;
provisions for preference 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 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 Valley Project.
Federal,
State and
Regional
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Goals
Legislative Policy Guidelines Venue
1. Local 2.
Reliability
3. GHG 4. Cost
Control
7. Advocate for 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
Regional
8. Support fair and reasonable application of grid
reliability requirements established by NERC,
WECC, or FERC and seek appropriate remedies
(if needed) for punitive application of fees and
fines.
Federal and
Regional
9. Work with CAISO and/or 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 power
using the bulk transmission system.
Federal and
State
10. 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
Regional
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FIBER OPTIC
Goals
1. Preserve and enhance the authority of local government to (1) develop broadband solutions that align
with community needs and (2) expand consumer choice for competitive Internet connectivity and
other advanced services delivered over fiberoptic networks.
2. Encourage the competitive delivery of broadband services by permitting the use of public rightsof
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 existing utility safety and
services obligations.
3. Support local government authority over zoningrelated land use for communications infrastructure
in accordance with reasonable and nondiscriminatory regulations.
4. Support the Technology and the Connected City initiative to fully leverage the fiber
optic asset to provide ubiquitous and reliable ultrahighspeed broadband connectivity
Goals
Legislative Policy Guidelines Venue
1. Support
Municipal
Delivery
2. Competitive
Delivery
3. Local
Authority
over Land
Use
4. Support
Council
Initiatives
1. Advocate for these goals through the
APPA, 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.
Federal
and State
2. Support legislation and regulations that
preserve and enhance municipal
delivery of conventional and advanced
telecommunication services as
prescribed by the Telecommunications
Act of 1996.
Federal
and State
3. Support the goals of the Federal
Communications Commission s (FCC),
National Broadband Plan to improve
Internet access nationwide.
Federal
and State
4. Oppose legislation and regulations that
benefit the incumbent cable TV and
telephone companies at the expense of
communityowned fiberoptic and
wireless networks.
Federal
and State
5. Support legislation and regulations that
preserve and enhance consumer
protections related to the incumbent
providers of telecommunication
Federal
and State
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Goals
Legislative Policy Guidelines Venue
1. Support
Municipal
Delivery
2. Competitive
Delivery
3. Local
Authority
over Land
Use
4. Support
Council
Initiatives
services.
6. Support legislation and regulations
that:
Permit the use of public rightof
way and Utilities infrastructure
Preserve local rightsofway
authority and management;
Preserve local government zoning
and siting authority for wireless
and wireline communication
facilities;
Oppose legislation and regulations that
reduce compensation received by local
governments for the use of the public
rightsofway and other public
properties that support communication
infrastructure
Federal,
State and
Local
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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.
Goals
Legislative Policy Guidelines Venue 1. Local 2. Reliability of
Infrastructure
3. Environ
ment
4. Cost
Control
1. Leverage the American Public Gas
Association (APGA) to assist in
natural gas goals .
Primarily
Federal with
minor
advocacy at
State level
2. Work with NCPA and CMUA to
the extent that the goals as
a gas distributor align with
use of natural gas.
Federal and
State
3. Support cost effective renewable
gas supplies from in or out of state
sources. Advocate for locally
reasonable mandated renewable
portfolio standards.
Federal and
State
4. Advocate for financing or funding
for costeffective natural gas
efficiency and solar water heating
end uses.
Federal and
State
5. Support market transparency and
efforts to eliminate market
manipulation through reasonable
oversight.
Federal
6. Support municipal ability
to enter into prepay transactions
for gas supplies.
Federal
7. Support efforts to improve pipeline
safety.
Federal and
State
8. Work with partners to discourage
extension of CPUC regulatory
authority over municipal gas
operations.
State
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Goals
Legislative Policy Guidelines Venue 1. Local 2. Reliability of
Infrastructure
3. Environ
ment
4. Cost
Control
9. Oppose legislative proposals
resulting in unreasonable costs for
Palo customers.
Federal
and State
10. Support legislation that aims to
protect public health and
encourages transparency
regarding hydraulic fracturing or
for natural gas
development, while opposing
blanket moratoriums that
supported by science.
Federal
and State
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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 nonvolumetric
customer meter or infrastructure charges for wastewater collection service.
2. Encourage efforts to increase the reliability of the 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, timeintensive reporting requirements and improve value
and accuracy of information reported to the public.
Goals
Legislative Policy Guidelines Venue
1. Local 2. Reliable
Infrastructure
3. Maintain
service
4. Valuable
reporting
1. Advocate goals through active
participation in the Association of
Bay Area Governments (ABAG),
and CMUA.
Local,
Regional
& State
2. Support regulations of wastewater
collection systems that recognize:
local 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 system.
Local,
Regional
& State
3. Support provision of sufficient
resources for regional agencies to
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 grant funding.
Local and
Regional
4. Support infrastructure security and
reliability including equitable
allocation of funds for increasing
the security of infrastructure.
Regional,
and State
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Goals
Legislative Policy Guidelines Venue
1. Local 2. Reliable
Infrastructure
3. Maintain
service
4. Valuable
reporting
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
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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.
Goals
Legislative Policy Guidelines Venue 1. Local
Authority
2. Reliable
Infrastructure
3. Minimize
imports
4. Supplies
at fair cost
1. Advocate goals through active
participation in the Bay Area Water Supply
and Conservation Agency (BAWSCA) and
CMUA, with support from Palo Alto staff
for BAWSCA
Local,
Regional
and State
2. Advocate to ensure that legislative actions
regarding the Hetch Hetchy Regional
Water System include:
timely rebuilding of the regional water
system;
ensurance that the SFPUC is
adequately assessing and
mitigating risks of infrastructure
failure;
maintenance of the quality of
delivered water;
minimization of any increase in the
cost of water;
no additional exposure to more
frequent or severe water
shortages;
support for the existing water system
and its operation.
Local,
Regional
and State
Advocate for interpretations or
implementation of Water Code provisions
that maintain or reinforce the authorities
and protections available to the City and
BAWSCA members outside of San
Francisco.
Local,
Regional
and State
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Goals
Legislative Policy Guidelines Venue 1. Local
Authority
2. Reliable
Infrastructure
3. Minimize
imports
4. Supplies
at fair cost
5. Support BAWSCA in efforts to achieve:
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 existing
contractual water allocation and
transportation rights on the SFPUC
Hetch Hetchy system; and
regional planning for conservation,
recycled water, and other water supply
projects.
Local and
Regional
6. Advocate for actions that:
preserve Palo existing
contractual rights;
preserve local control over water
use; and
limit encroachment from outside
jurisdictions.
Local and
Regional
7. Support infrastructure security and
reliability including an interconnection
between the SCVWD West Pipeline with
the Bay Division Pipelines 3 and 4.
Regional
and State
8. Support notification requirements that
inform residents/customers but do not
inflict undue or unobtainable requirements
on the utility.
State
9. Support local control of public benefit
funding levels and program design.
State
10. Support beneficiary pays methodologies to
prevent taxes or fees imposed on SFPUC
customers to fund infrastructure
improvements and costs of water sources
that do not serve Palo Alto customers.
State and
Regional
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Goals
Legislative Policy Guidelines Venue 1. Local
Authority
2. Reliable
Infrastructure
3. Minimize
imports
4. Supplies
at fair cost
11. Advocate for financing, funding, and,
where applicable, tax exemption, for water
conservation programs, water rebate
programs, and recycled water projects that
meet enduse needs and conserve potable
water; oppose legislation that would
reduce such funding.
State,
Regional
and
Federal
12. Support legislation that promotes
responsible groundwater management.
State
13. Support Proposition 218 reform efforts to
provide ratemaking flexibility to balance
conservation, revenue sustainability, and
low income programs.
State
14. Advocate for water conservation policies
(both drought response and long term)
that achieve water sustainability while
minimizing customer and commercial
impact, protecting the City s urban
canopy and minimizing the City s
enforcement costs.
Local and
State
15. Protect SFPUC s water rights. Local and
State
16. Support legislation that would protect the
City s infrastructure and treatment
investments from future statewide cuts
in water use.
State
17. Oppose government action that creates
undue burdens on or unreasonably
expands the role and responsibility of
water suppliers
State
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