HomeMy WebLinkAboutRESO 100756056671
Resolution No. 10075
Resolution of the Council of the City of Palo Alto Adopting
Design Guidelines for an Advanced Heat Pump Water Heater
Pilot Program to Further the City’s Sustainability and Climate
Action Plan Goals
R E C I T A L S
A.The Council has approved a Sustainability and Climate Action Plan Goal of 80%
emissions reduction from 1990 levels by 2030, a Framework, and an Implementation Plan. A
preliminary impact analysis reviewed by the Council on April 19, 2020 demonstrated that
building and vehicle electrification was a critical part of achieving these goals.
B.The Council intends to establish various programs to promote building,
appliance and vehicle electrification. Given State and Federal action on electric vehicles, local
governments can be most effective in developing programs to promote electric vehicle
charging and building electrification.
C.The Council finds that heat pump water heater technology is widely available,
significantly reduces emissions when compared to natural gas water heating, and is a familiar
technology that will allow the community to take immediate, manageable steps to reduce
greenhouse gas emissions.
D.The Council finds that heat pump water heaters have lower grid impacts than
other building electrification measures. The City’s electric utility is undertaking a grid
modernization effort, and Council wishes to prioritize heat pump water heaters while this grid
modernization gets underway.
E.As a result, the Council wishes to prioritize the development of an ambitious
Advanced Heat Pump Water Heater Pilot Program to convert gas water heaters to heat pump
water heaters.
The Council of the City of Palo Alto (“City”) RESOLVES as follows:
SECTION 1. The Council makes the following findings:
a)Prioritizing action on Advanced Heat Pump Water Heater Pilot Program (“the HPWH
Program”) does not preclude action on electrifying other types of equipment,
action on Goals or Key Actions in other areas of the Sustainability and Climate
Action Plan (such as Electric Vehicles or Mobility), or other parallel efforts to
improve electric system reliability, streamline permitting, promote low-wattage
vehicle charging and electrification strategies, or other barrier reduction strategies.
The Council encourages continuing staff action and expects additional discussions
in these areas.
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b)The HPWH Program would benefit electric ratepayers by increasing utilization of
the electric distribution system, spreading the cost of maintaining the system over
more units sold, and decreasing costs for all ratepayers in the long term.
c)The HPWH Program would benefit gas ratepayers by avoiding future increasing
environmental and transmission charges on gas use, by helping ratepayers begin
an orderly, planned transition from natural gas use consistent with State and local
climate goals, and by helping ratepayers adopt the most cost-effective method of
heating water, lowering their utility bills overall.
d)The HPWH Program is a “cost-effective demand-side management service to
promote energy efficiency and energy conservation” under State Public Utilities
Code 385(a)(3) because the cost of heating water using efficient heat pumps and
low-cost Palo Alto electricity is lower than the cost of heating water using a gas
water heater.
SECTION 2. The Council approves the Design Guidelines for an Advanced Heat Pump
Water Heater Pilot Program (Exhibit A).
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SECTION 3. The Council finds that the adoption of this resolution is not subject to
California Environmental Quality Act (CEQA) review because it is an administrative government
activity that will not result in any direct or indirect physical change to the environment (CEQA
Guidelines section 15378(b)(5)).
INTRODUCED AND PASSED: October 3, 2022
AYES: BURT, CORMACK, DUBOIS, FILSETH, KOU, STONE
NOES: TANAKA
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Director of Utilities
Director of Administrative Services
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Exhibit A to Resolution No. 10075
Adopted by Council on 10/3/2022
Advanced Heat Pump Water Heater Pilot Design Guidelines
The following design guidelines are intended to guide the development of an Advanced Heat
Pump Water Heater Pilot Program (“the HPWH Program”):
1.The goal of the HPWH Program should be to achieve at least 1000 conversions of gas water
heaters to heat pump water heaters with the goal of transitioning to a full-scale program
intended to convert all gas water heaters in Palo Alto to heat pump water heaters.
2.The HPWH Program should include a marketing effort sufficient to increase awareness of the
climate benefits and utility bill savings of heat pump water heaters over gas water heaters.
3.The HPWH Program should reduce barriers to residents in installing heat pump water heaters
by measures including, but not limited to:
a.Turnkey installation of heat pump water heaters by a City contractor
b.Utility on-bill financing
c.Enhanced rebates
d.Partnership with third party financing programs
4.The HPWH Program should offer pricing to early participants attractive enough to compete
with gas water heater installations.
5.The HPWH Program should take advantage of all utility-related benefits, such as increased
revenues and decreased energy supply costs, to minimize program costs.
6.When setting participant pricing, staff should ensure that a) the HPWH Program is attractive
to residents but that b) the HPWH Program achieves its goals within the amount of funding
provided by utility-related benefits and any Council-approved funds.
7.On-bill financing should be attractive to participants, easy to understand, simple to administer,
and accessible, which could involve features such as:
a.Uniform loan amounts that do not vary by project
b.Monthly payments that are similar to the on-bill savings experienced by most
participants
c.Simple qualifications to participate (e.g. history of utility bill payment instead of using
credit scores for qualification)
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Envelope Originator:
Vinhloc Nguyen
250 Hamilton Ave
Palo Alto , CA 94301
Vinhloc.Nguyen@CityofPaloAlto.org
IP Address: 199.33.32.254
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10/4/2022 1:50:41 PM
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Amy Bartell
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City of Palo Alto
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Kiely Nose
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Director, Administrative Services/CFO
City of Palo Alto
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Director of Utilities
City of Palo Alto
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Ed Shikada
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Ed Shikada, City Manager
City of Palo Alto
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Patrick Burt
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Mr
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Lesley Milton
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City Clerk
City Clerk
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