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HomeMy WebLinkAboutRESO 9576160128 jb 6053661 Resolution No. 9576 Resolution of the Council of the City of Palo Alto Approving the City of Palo Alto Utilities Legislative Policy Guidelines A. The City of Palo Alto Utilities 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.he , 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 13, 2016 meeting, and the UAC voted unanimously (6­0 with Commissioner Hall absent) to the original language, such that the proposed guidelines, provided as Exhibit A to this 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 22, 2016. All prior versions of the City of Palo Alto Utilities Legislative Policy Guidelines, including the Legislative Policy Guidelines adopted by Council on March 2, 2015 (Resolution No. 9498) are hereby repealed and replaced in their entirety by the Utilities Legislative Policy Guidelines, attached to this Resolution as Exhibit A. SECTION 2.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. //  //  //  //  DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B 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: February 22, 2016 AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Utilities Director of Administrative Services DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 Included as Exhibit A to Resolution Exhibit A Formal advocacy positions taken in alignment with these guidelines will be subject to the 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 and security of the supply, transmission, storage, distribution/collection, and data infrastructures. 3. Support legislation that makes bold progress in cost effectively reducing greenhouse gas (GHG) emissions, and recognizes early voluntary action. 4.le, and competitively­priced utility services. Goals Legislative Policy  Guidelines Venue 1. Local  Accountability 2. Reliability,  Security &  Infrastructure 3. Climate  Protection 4. Service &  Cost Control 1. Advocate goals through active participation in joint action efforts. Federal, State, and Regional 2. Support legislation that allows local evaluation and design of more efficient energy solutions, fuel switching, and demand control programs. Federal, State, and Regional 3. Promote utility legislation and regulations that support effective and consistent compliance and reporting requirements. Ensure such legislation and regulations have received stakeholder review and cost benefit analysis. Federal, State, and Regional Reliability Councils 4. Oppose unreasonable and inequitable financial burdens through active participation in CMUA and NCPA legislative activities. Federal, State, and CPUC DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 Goals Legislative Policy  Guidelines Venue 1. Local  Accountability 2. Reliability,  Security &  Infrastructure 3. Climate  Protection 4. Service &  Cost Control 5. Advocate for state and federal grants for local and regional energy efficiency and conservation measures, renewable resources, fiber optic, 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 financial and operational value of utility assets and contracts; preserve local regulatory control of both. Federal and State 8. Enhance utility customer protections for data security and confidentiality. Federal and 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 legislation and regulations supporting reasonable and consistent requirements for utility notifications, , safety, services, public communications, billing, payments, and customer assistance. Federal and State 11. Support Proposition 26 reform efforts to provide ratemaking flexibility to balance conservation, revenue sustainability, and low income assistance programs. State DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 Goals Legislative Policy  Guidelines Venue 1. Local  Accountability 2. Reliability,  Security &  Infrastructure 3. Climate  Protection 4. Service &  Cost Control 12. Seek state and regional funding to enhance the efficiency, security, and reliability of infrastructure that maintains utility customer data security and confidentiality. Federal and State DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 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 recognizes early voluntary action in reducing GHG emissions and specifically exempts a municipality from burdensome requirements 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  Accountability 2. Reliability 3. GHG  Reduction 4. Cost  Contro l 1. 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; strive to present the same or substantially the same message Federal and State 2. 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). State 3.Advocate for legislation/regulations that provide local accountability and design of: Net Energy Metering (NEM) successor programs designed to fit local conditions and priorities; Electric Integrated Resource Plans cost­effective renewable 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 Federal and State DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 Goals Legislative Policy Guidelines Venue 1. Local  Accountability 2. Reliability 3. GHG  Reduction 4. Cost  Contro lequity; equitable rate design and tariffs; cost­effective electric efficiency programs; implementation of renewable portfolio standards; cost­effective storage integration; direct access requirements; smart meters and smart grid design and implementation; and use of public benefit funds (as allowed in AB 1890 (1996) 4.Support cap­and­trade 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 lower GHG emission portfolios; provide flexible compliance mechanisms such as banking and borrowing of allowances; and allocate funds generated from cap­and­ trade markets to cost­effective GHG­ reduction related activities, not as a revenue source for state or federal general funds. Federal and State 5.Support legislation for renewable portfolio standards that: maintain local compliance authority; avoid mandates for technology or source specific carve outs, and minimum term requirements; allow utilities to pursue all cost­ effective resources available to meet portfolio needs including use of Renewable Energy Certificates (RECs); ensure uniform application of RPS standards, avoiding punitive and/or duplicative non­compliance penalties; restrict new regulations expanding CEC jurisdiction over publicly owned utilities; Local and State DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 Goals Legislative Policy Guidelines Venue 1. Local  Accountability 2. Reliability 3. GHG  Reduction 4. Cost  Contro lallow local distributed generation to count in full towards RPS; and prioritize the use of existing transmission system assets over building new transmission. 6.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 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 trans transmission and procurement planning and implementation activities); and reduce negative environmental impacts on the Bay Area and the Peninsula. Local, State, and Federal 7.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 Federal, State and Regional DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 Goals Legislative Policy Guidelines Venue 1. Local  Accountability 2. Reliability 3. GHG  Reduction 4. Cost  Contro lgeneration 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; first take at available land with economic potential for wind farms; balancing efforts for competing environmental improvements in rivers and Delta conditions with water supply and hydropower impacts; support grid modernization 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; advocating for an equitable distribution of costs between water and power customers of the Central Valley Project; and advocating for clear product provisions, fair allocation of Base Resource Capacity and fair contract terms under Western s 2025 Power Marketing Plan and new Western Base Resource contracts. 8. Advocate for Congressional 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 Regional 9. Support fair and reasonable application of grid reliability requirements established by NERC, WECC, or FERC and seek appropriate remedies Federal and Regional DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 Goals Legislative Policy Guidelines Venue 1. Local  Accountability 2. Reliability 3. GHG  Reduction 4. Cost  Contro l(if needed) for inequitable or punitive application of fees and fines. 10.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 11. Work with NCPA, CMUA and NERC to ensure that: Federal, state and regional designations appropriately applied to only truly critical local distribution infrastructure; and CPAU retains local control over implementation of utility industry cyber security standards, policies and procedures. Federal and Regional DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 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 managem utility safety, service, and operational s obligations. 3. Support local government authority over zoning­related land use for communications infrastructure in accordance with reasonable and non­discriminatory regulations. 4.Technology and the Connected City initiative of 2013, to fully ­optic and infrastructure assets such as public rights­of­way, utility poles and conduit for the broadband expansion. 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 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. 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, telephone, and telecommunications companies at the expense of community­owned fiber­optic and wireless networks. Federal and State DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 Goals Legislative Policy Guidelines Venue 1. Support  Municipal  Delivery 2. Competitive  Delivery 3. Local  Authority  over Land  Use 4. Support  Council  Initiatives 5. Support legislation and regulations that preserve and enhance utility customer data security and confidentiality protections by the providers of telecommunication services. Federal and State 6. concurrently pursue the findings and recommendations in the Fiber­to­the­ Premises Master Plan and Wireless Network Plan and continue discussions and negotiations with third parties considering new service deployments in Palo Alto. Local 7.Support legislation and regulations that:: Permit the contractual 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; policies to ensure conduit and fiber are available for lease on reasonable terms; and Oppose legislation and regulations that arbitrarily reduce compensation received by local governments from other entities for the economic use of the public rights­of­way and other public properties required for communication infrastructure (e.g., utility poles, streetlight poles, ducts and conduits). Federal, State and Local DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 NATURAL GAS Goals 1. Preserve/enhance the ability of municipal utilities to develop and implement demand side efficiency and conservation programs, alternative gas supplies, and rate structures. 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  Accountability 2. Reliability of  Infrastructure 3. Environ­  ment 4. Cost  Control 1. Advocate most of these goals mainly through the American Public Gas Association (APGA) with minor support from Palo Alto staff. Primarily Federal with minor advocacy at State level 2. Work with Northern California Power Agency (NCPA) and California Municipal Utilities Association (CMUA) to the extent use of natural gas. Federal and State 3. Support cost effective renewable gas supplies from in or out of state sources. In case of mandated renewable portfolio standards, advocate for controls and off­ ramps similar to the electric RPS that minimize customer cost impact. 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 to enter into pre­pay transactions for gas supplies. Federal 7. Support efforts to improve pipeline safety. Federal and State DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 Goals Legislative Policy Guidelines Venue 1. Local  Accountability 2. Reliability of  Infrastructure 3. Environ­  ment 4. Cost  Control 8. Work with partners to discourage extension of CPUC regulatory authority over municipal gas operations. State 9.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. Federal and State 10. Support legislation that aims to protect public health and encourages transparency regarding the practice of hydraulic fracturing development, while opposing supported by science. Federal and State DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 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  Accountability 2. Reliable  Infrastructure 3. Maintain  service 4. Valuable  reporting 1. Advocate goals through active participation in the Association of Bay Area Governments (ABAG). Local, Regional & State 2.Support regulations of wastewater collection systems that recognize: 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 regional agencies in their pursuit of: 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 5. Advocate for funding and local regulations for wastewater collection system projects and requirements that reduce overflows and improve collection system efficiency. Regional, State and Federal DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 WATER Goals 1. Support the ability of public utilities and districts to develop and implement their own water efficiency and conservation programs while retaining authority over ratemaking, including the ability to optimize volumetric, fixed, and drought­related pricing and 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. Provide environmentally sustainable and reliable supplies of high quality water. Goals Legislative Policy Guidelines Venue 1. Local  Authority 2. Reliable  Infrastructur 3. Minimize  imports 4. Supplies  at fair cost 1. Advocate goals through active participation in the Bay Area Water Supply and Conservation Agency (BAWSCA), California Urban Water Conservation Council (CUWCC), and California Municipal Utilities Association (CMUA), with support from Palo Alto staff for BAWSCA Local, Regional and State 2. Participate in 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 cost­effective. State 3.Advocate to ensure that legislative actions regarding the Hetch Hetchy Regional Water System include: timely rebuilding of the regional water system; 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; increased real­time monitoring data availability to ensure water quality; support for the existing water system and its operation; Local, Regional and State DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 Goals Legislative Policy Guidelines Venue 1. Local  Authority 2. Reliable  Infrastructur 3. Minimize  imports 4. Supplies  at fair cost SWRCB responsiveness to SFPUC water quality issues; 4. 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 5.Support BAWSCA to enable it to advocate for: an environmentally sustainable, reliable supply of high quality water at a fair price; under the Water Supply Agreement for water from SFPUC that meets quality standards; a SFPUC rate structure that is consistent with the Water Supply Agreement and is based on water usage; 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: existing contractual rights; and 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 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 DocuSign Envelope ID: 744C4EF3-E960-4AF7-A022-17ECF750F84B Utilities Legislative Policy Guidelines February 2016 Update 6053662 Goals Legislative Policy Guidelines Venue 1. Local  Authority 2. Reliable  Infrastructur 3. Minimize  imports 4. Supplies  at fair cost 9. Support local control of public benefit funds, 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 11. Advocate for financing or funding for water conservation programs and recycled water projects that meet end­use needs and conserve potable water and oppose legislation that would reduce such funding. State, Regional and Federal 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. Local, State and Federal 13. Support legislation that promotes responsible groundwater management historical groundwater extraction practices. State 14. Support Proposition 218 reform efforts to provide ratemaking flexibility to balance conservation, revenue sustainability, and low income assistance programs. State 15. Advocate for reasonable statewide water conservation efforts (both drought response and long term) that achieve required water savings while minimizing customer and commercial impact, protecting the City s urban canopy and minimizing the City s enforcement costs. State 16. Protect the City and County of San Francisco s water rights as well as those of the co­grantees of the Raker Act. State 17. Support legislation that would protect the City s infrastructure and treatment investments from future state­wide cuts in water use. 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