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HomeMy WebLinkAboutRESO 99306055443 Resolution No. 9930 Resolution of the Council of the City of Palo Alto Amending the Carbon Neutral Natural Gas Plan to Continue to Achieve Carbon Neutrality for the City’s Natural Gas Supply Portfolio R E C I T A L S A. In December 2007, Council adopted the City’s Climate Protection Plan which set aggressive greenhouse gas (GHG) emission reduction goals to be achieved by the year 2020. B. In March 2013, 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, long-term renewable resources and short-term renewable energy resources and/or renewable energy certificates (“RECs”). C. On September 9, 2013, Council approved Resolution 9372 modifying and suspending portions of the PaloAltoGreen Program and directed staff to develop a PaloAltoGreen Gas (PAG Gas Program) Program. D. On April 21, 2014, 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, Council adopted a GHG reduction goal of 80% by the year 2030. GHG emissions associated with natural gas used by City of Palo Alto Utilities customers were 135,000 metric tons of carbon dioxide equivalent, or 27% of the City’s GHG emissions, in 2015. F. Staff initially proposed a Carbon Neutral Natural Gas Plan that would use a combination of physical biogas and high-quality 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 6-1 to recommend Council approve a Carbon Neutral Gas Plan using a combination of physical biogas and high- quality environmental offsets to achieve a carbon-neutral gas portfolio and direct staff terminate the PAG Gas Program. H. On October 18, 2016, the Finance Committee voted 2-1 to instead recommend that Council: I. (i) Adopt a resolution that (a) approves a Carbon Neutral Natural Gas Plan that DocuSign Envelope ID: A599FFC5-6F96-4CE2-B95C-9D566366B9F2 6055443 would enable the City to achieve a carbon-neutral 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 (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. J. On December 5, 2016, Council adopted Resolution 9649 approving a carbon neutral gas plan starting in fiscal year 2018 with a rate impact not to exceed ten cents per therm (10 ₵/therm) and terminated the PAG Gas program established by Resolution 9405. K. On October 7, 2020, the Utilities Advisory Commission voted 7-0 to recommend Council approve the amended Carbon Neutral Gas Plan as outlined in Exhibit A. The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Council hereby adopts a resolution: 1. Approving an amended Carbon Neutral Natural Gas Plan, as shown in Exhibit A, enabling the City to maintain a carbon-neutral gas supply portfolio. // // // // // // // DocuSign Envelope ID: A599FFC5-6F96-4CE2-B95C-9D566366B9F2 6055443 // // SECTION 2. The Council’s adoption of this Resolution, which amends the Carbon Neutral Natural Gas Plan, does not meet the definition of a project, pursuant to section 21065 of the California Environmental Quality Act (CEQA). Offset project developers will be responsible for acquiring necessary environmental reviews and permits as those projects are developed. INTRODUCED AND PASSED: December 7, 2020 PASSED: DUBOIS, FILSETH, FINE, KNISS, KOU, TANAKA NOES: ABSENT: CORMACK ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities Director of Administrative Services DocuSign Envelope ID: A599FFC5-6F96-4CE2-B95C-9D566366B9F2 Exhibit A CITY OF PALO ALTO CARBON NEUTRAL GAS PLAN EXHIBIT A TO RESOLUTION NO. 9930 ADOPTED BY COUNCIL ON: December 7, 2020 RECOMMENDED FOR APPROVAL BY UTILITIES ADVISORY COMMISSION ON: Oct. 7, 2020 Carbon Neutral Gas Plan Objective: Originally adopted by the City Council on December 5, 20161, the objective of the City's Carbon Neutral Gas Plan is to mitigate the GHG emissions resulting from natural gas use in the City of Palo Alto through the purchase of high-quality carbon offsets as a bridging strategy toward absolute reductions in natural gas use. Implementation of the Carbon Neutral Gas Plan will be carried out by staff. Carbon Neutral Gas Plan Elements: 1.The quantity of offsets purchased to meet the City’s Carbon Neutral Plan objectives will be matched to carbon emissions associated with the City’s natural gas sales volume; 2.Offset purchases must be from project types which adhere to California Air Resource Board (CARB)-approved cap and trade compliance protocols, currently including U.S. Forest, U.S. Urban Forest, U.S. Livestock, U.S. Sourced and Destroyed Ozone Depleting Substances, U.S Mine Methane Capture, and U.S. Rice Cultivation; or any other project type subsequently approved by CARB; 3.Offset purchases are restricted to CARB’s vintage requirements, which currently permit offsets generated in 2006 or later; 4.Offset transactions are limited to spot purchases, which are for offsets that have already been created, verified, and are ready to be sold; 5.Rate impacts of individual offset transactions are limited to under $19 per ton of CO2e. This is consistent with the Council-approved maximum rate impact of 10₵/therm. 6.In implementing the Carbon Neutral Gas Plan, staff will maintain a preference for California projects as long as this preference does not result in a price premium. 1 Staff report 7533. DocuSign Envelope ID: A599FFC5-6F96-4CE2-B95C-9D566366B9F2 Certificate Of Completion Envelope Id: A599FFC56F964CE2B95C9D566366B9F2 Status: Completed Subject: Please DocuSign: RESO 9930 Amending the City's Carbon Neutral Gas Plan to Continue to Achieve C... Source Envelope: Document Pages: 4 Signatures: 6 Envelope Originator: Certificate Pages: 5 Initials: 0 Danielle Kang AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Danielle.Kang@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 12/17/2020 1:11:31 PM Holder: Danielle Kang Danielle.Kang@cityofpaloalto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Amy Bartell Amy.Bartell@CityofPaloAlto.org Assistant City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 12/17/2020 1:15:46 PM Viewed: 12/17/2020 1:29:06 PM Signed: 12/17/2020 1:36:53 PM Electronic Record and Signature Disclosure: Accepted: 7/16/2015 5:52:40 AM ID: d8ecb53d-ef81-4016-8886-1560c48de42a Kiely Nose Kiely.Nose@CityofPaloAlto.org Director, Administrative Services/CFO City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 73.70.132.132 Sent: 12/17/2020 1:36:55 PM Resent: 12/23/2020 9:29:45 AM Resent: 12/29/2020 10:19:54 AM Resent: 1/4/2021 9:56:07 AM Viewed: 1/4/2021 3:18:51 PM Signed: 1/4/2021 3:19:12 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Dean Batchelor Dean.Batchelor@CityofPaloAlto.org Director of Utilities Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 174.194.145.155 Signed using mobile Sent: 1/4/2021 3:19:14 PM Viewed: 1/4/2021 5:37:38 PM Signed: 1/4/2021 5:38:01 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada Ed.Shikada@CityofPaloAlto.org Ed Shikada, City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 1/4/2021 5:38:03 PM Viewed: 1/5/2021 5:02:34 PM Signed: 1/5/2021 5:02:42 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Signer Events Signature Timestamp Adrian Fine Adrian.Fine@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 108.228.10.70 Signed using mobile Sent: 1/5/2021 5:02:44 PM Viewed: 1/5/2021 5:34:29 PM Signed: 1/5/2021 5:34:44 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Beth Minor beth.minor@cityofpaloalto.org City Clerk City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 1/5/2021 5:34:47 PM Viewed: 1/5/2021 5:38:38 PM Signed: 1/5/2021 5:38:52 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 12/17/2020 1:15:46 PM Certified Delivered Security Checked 1/5/2021 5:38:38 PM Signing Complete Security Checked 1/5/2021 5:38:52 PM Completed Security Checked 1/5/2021 5:38:52 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure CONSUMER DISCLOSURE From time to time, City of Palo Alto (we, us or Company) may be required by law to provide to you certain written notices or disclosures. 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