HomeMy WebLinkAboutRESO 9649161102 jbJM/Staff Reports
Resolution No. 9649
Resolution of the Council of the City of Palo Alto Approving a
Carbon Neutral Natural Gas Plan to Achieve a Carbon Neutral
Gas Supply Portfolio by Fiscal Year 2018 with No Greater than
10¢/Therm Rate Impact; and Related Termination of the Palo
Alto Green Gas Program
R E C I T A L S
A. In December 2007, Council adopted the City Climate Protection Plan which set
aggressive greenhouse gas (GHG) emission reduction goals to be achieved by the year 2020.
B. In March 2013, this Council approved Resolution 9322 directing staff to achieve
carbon neutrality for the electric supply portfolio by 2013 through the use of a combination of
hydroelectric resources, longterm renewable resources and shortterm renewable energy
resources and/or renewable energy certificates (RECs ).
C. On September 9, 2013, this Council approved Resolution 9372 modifying and
suspending portions of the PaloAlto Green Program, and directing staff to develop a
PaloAltoGreen Gas (PAG Gas Program) Program.
D. On April 21, 2014, this Council approved Resolution 9405 establishing the voluntary
PAG Gas Program to provide the opportunity for residential and commercial customers to
economically reduce or eliminate the impact of GHG emissions associated with their gas usage
through the purchase of certified environmental offsets.
E. In April 2016, this Council adopted a GHG reduction goal of 80% by the year 2030.
GHG emissions associated with natural gas use were 135,000 metric tons of carbon dioxide
equivalent, or 27% of the City GHG emissions, in 2015.
F. Staff initially proposed a Carbon Neutral Natural Gas Plan that would use a
combination of physical biogas and highquality environmental offsets to achieve a carbon
neutral gas portfolio by fiscal year 2018 by maximizing the amount of biogas in the portfolio
while holding the rate impact at a maximum limit of ten cents per therm (10 /therm).
G. On August 31, 2016, the Utilities Advisory Commission voted 61 to recommend
Council approve a Carbon Neutral Gas Plan using a combination of physical biogas and high
quality environmental offsets to achieve a carbonneutral gas portfolio and terminate the PAG
Gas Program.
H. On October 18, 2016, the Finance Committee voted 21 to instead recommend that
Council:
(i) Adopt a resolution that (a) approves a Carbon Neutral Natural Gas Plan that would
enable the City to achieve a carbonneutral gas supply portfolio starting in Fiscal Year (FY) 2018
with a rate impact not to exceed ten cents per therm (10 ¢/therm); and (b) terminate the PAG
Gas Program established by Resolution 9405; and
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161102 jbJM/Staff Reports
(ii) Direct staff to: (a) develop an implementation plan for the Carbon Neutral Natural
Gas Plan; (b) provide an option for Council to consider prioritizing local offsets; and (c) prioritize
maximizing carbon reduction within the 10 /therm rate impact cap.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council hereby adopts a resolution:
1. Approving a Carbon Neutral Natural Gas Plan, enabling the City to achieve a
carbonneutral gas supply portfolio starting in fiscal year 2018 with a rate impact not to
exceed ten cents per therm (10 /therm); and
2. Terminating the PAG Gas program established by Resolution 9405.
SECTION 2. The Council s adoption of this Resolution, which approves a Carbon
Neutral Natural Gas Plan and terminates the PAG Gas program does not meet the definition of a
project, pursuant to section 21065 of the California Environmental Quality Act (CEQA). Offset,
biogas and other potential project developers will be responsible for acquiring necessary
environmental reviews and permits as those projects are developed.
INTRODUCED AND PASSED: December 5, 2016
NOES: BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Senior Deputy City Attorney City Manager
Director of Utilities
Director of Administrative Services
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