HomeMy WebLinkAboutStaff Report 7304
City of Palo Alto (ID # 7304)
City Council Staff Report
Report Type: Action Items Meeting Date: 11/28/2016
City of Palo Alto Page 1
Summary Title: Discuss and Approve S/CAP Framework, Principles &
Guidelines
Title: Discuss and Approve Sustainability and Climate Action Plan (S/CAP)
Framework, Principles & Guidelines
From: City Manager
Lead Department: City Manager
Recommendation
Staff recommends that City Council
1) Discuss and adopt the attached (Attachment A) Sustainability/Climate Action Plan
Framework (S/CAP Framework), including its Guiding Principles, Decision Criteria and
Design Principles as the road map for development of subsequent S/CAP
Implementation Plans (SIPs); and
2) Direct Staff to return to Council with S/CAP Implementation Plans, possibly in phases,
early in 2017.
Executive Summary
On April 18, 2016, Council reviewed the Draft Palo Alto Sustainability/Climate Action Plan
(S/CAP), provided comments to Staff, and adopted the S/CAP’s Primary Goal: The achievement
of an 80% reduction in Greenhouse Gasses (GHGs) below 1990 levels by 2030. Staff is now
returning to Council with a revised document to reflect Council guidance from the April 18
meeting.
This document is called the S/CAP “Framework” because it provides an overall perspective on
the City’s 2030 climate strategy, Guiding principles and Design principles, and Decision criteria,
along with Strategies and Targets (with GHG estimates) from the April Draft S/CAP, and a road
map for a more detailed implementation plan(s). Its significance is that it has been streamlined
by moving the “action items” included in the April 2016 report into more detailed Sustainability
Implementation Plans (SIPs), under development. This has allowed staff to reshape the action
items from the draft S/CAP into new implementation plans with a near term, 2020 horizon.
This will allow easier and more accurate assessment of the costs and ROI on recommended
actions to make progress towards our 2030 goal.
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Staff envisions a new SIP to be developed every following five years to guide our S/CAP efforts
and inform annual budget decisions. It also allows staff to return to Council to meet your
directive (C) from the April meeting, supporting the General Framework of the S/CAP. Staff
thought that this bifurcation would make it clearer about support for the General Framework,
understanding that some of the most intensive discussion about the S/CAP will occur during
review of the specific actions in the Implementation Plans to come to Council next year. Staff
appreciates that discussion on those plans could engender or require subsequent changes to
the Strategies and Targets in this Framework.
In the coming months, staff will refine the S/CAP Implementation Plans, solicit community
input, and bring them for review and adoption by the City Council. Staff recommends that
Council adopt the S/CAP Framework now, and direct Staff to bring the Sustainability
Implementation Plans (Sips) back to Council in early 2017. The initial plans are organized into
seven areas, and staff may bring them back in phases.
Background
On 4/18/16 City Council received and discussed the draft Sustainability/Climate Action Plan
(S/CAP), and unanimously (8-0) approved the following resolution1:
A. Adopt a goal of 80% greenhouse gas (GHG) reduction by 2030, calculated utilizing the
1990 baseline;
B. Direct staff to return within two months with a process for integration of the
Sustainability and Climate Action Plan (S/CAP) with the Comprehensive Plan Update;
C. Support the general framework of the S/CAP;
D. Support the S/CAP Guiding Principles, which are to be reviewed and formally adopted
within six months.
In response to these directives:
(B.) Staff have developed and have begun implementing a process for integration of the
Sustainability and Climate Action Plan (S/CAP) with the Comprehensive Plan Update
(C.) Staff have formed seven inter-departmental teams to develop “Sustainability
Implementation Plans” (SIPs) covering the key S/CAP sections: Mobility, Efficiency and
Electrification, Water, Zero Waste, Municipal Operations, Natural Environment, and
Adaptation/Sea Level Rise.
(D.) The Framework document before the Council tonight includes the Guiding
Principles
1 http://www.cityofpaloalto.org/civicax/filebank/documents/52025
City of Palo Alto Page 3
In the context of Council’s directive supporting the general framework of the S/CAP, since
Council reviewed the draft in April, relevant developments in the City have included:
Development of a Carbon Neutral Natural Gas strategy (which moves City the next step
along the trajectory from Carbon Neutral Electricity to Carbon Neutral Utility to Carbon
Neutral City);
Adoption of an advanced Green Building Ordinance and Energy Reach Code;
Continued analysis of electrification options;
Exploration of Zero Net Energy buildings and districts.
Since Council reviewed the draft in April, relevant developments in the world have included:
Paris climate agreement entered into November 4 by 195 countries;
Governor Brown signed SB32, requiring California to reduce greenhouse gas emissions
40% below 1990 levels by 2030;
Many more cities have committed to 100% renewable electricity.
Discussion
Staff has divided the draft S/CAP Council reviewed in April into two elements:
A "Framework" document, including narrative, Guiding principles, Design principles and
Decision criteria, and Goals and Strategies and Targets, as the base document of the
S/CAP (with Action steps that were listed under strategies in the April 2016 Draft
removed). The Framework document, and its 2030 trajectory, is the focus of discussion
tonight.
"Sustainability Implementation Plans” (SIPs) covering each section of the S/CAP
Framework. These rework the Actions steps from the April draft (and removed from the
Framework document before you). These SIPs—focused on the 2020 time frame—will
include more detail than the initial lists of Action steps, including prioritized actions
needed to accomplish S/CAP goals, as well as budget and staffing estimates as needed.
In some cases, they also include further elaboration or clarification of goals and
strategies in the April S/CAP draft.
(Staff is completing SIPs covering the seven program chapters of the S/CAP, including
mobility, efficiency and electrification, municipal operations, water, zero waste, natural
environment, adaptation/sea level rise. Staff will bring these to Council for review in a
series of decisions beginning in early in 2017. Staff will develop implementation plans
for the other S/CAP chapters—Community Behavior and Culture Change, Utility of the
Future, Information Systems, and Funding Strategies—in future work phases.)
City of Palo Alto Page 4
The S/CAP Framework differs from the April draft in several ways (key changes are highlighted
in Attachment A):
Most sections have had minor modifications to goals and strategies.
Several sections (Water, Adaptation/Sea level Rise, Natural Environment) have been
substantially expanded with additional and/or modified goals, and a number of new
strategies.
The goals and strategies in the Efficiency and Electrification section have been modified
and reorganized.
The action Items have been removed and redeployed to the SIPs.
The S/CAP Framework document includes Guiding Principles, Design Principles and Decision
Criteria (see Attachment C), all intended to provide a clear, shared, common platform to help
Council, staff, and community stay on course as we address the dozens and ultimately
hundreds of decisions that will need to be made over the coming decade in order to realize Palo
Alto's 2030 sustainability and climate goals:
The Guiding Principles provide a durable foundation "for effective and sustainable
decision-making" as the City navigates the inevitable twists and turns that will arise as
we implement.
The Design Principles provide guidance to staff, Council and community in "developing
and evaluating future programs" to implement the S/CAP;
The Decision Criteria will guide Council and staff in "selecting specific programs and
policies to pursue, and in allocating public resources to support them."
(Note that while Council previously called out the Guiding Principles in April, Council should pay
special attention to the Decision Criteria, which can serve as a hedge against concerns about
the impacts of Council’s decisions.)
Staff will continue to report progress to Council annually (or more often as warranted), and
anticipates updating the SIPs and the S/CAP in 2020 and 2025.
Resource Impacts
Revisions to the Framework and development of the SIPs has required an estimated 300 hours
of staff time to date; resource requirements to complete the SIPs will depend on Council
guidance. Recalibration of GHG reduction estimates, if desired, will require an extension of the
contract with the consultants that prepared the S/CAP.
Policy Implications
As indicated above, the City Council has embraced the S/CAP goal of reducing Palo Alto’s GHG
emissions to 80% below 1990 levels by 2030, which will also be the horizon year of the updated
Comprehensive Plan. The S/CAP also addresses a number of other sustainability topics that
City of Palo Alto Page 5
overlap and complement the updated Comprehensive Plan, making coordination between the
two planning efforts a critical exercise. Staff has been working to ensure this integration, has
conducted a “cross-walk” analysis of both plans, assisted by a sustainability subcommittee of
the Comprehensive Plan Community Advisory Committee (CAC).
While this effort is not yet complete, the two planning efforts are proceeding in parallel,
including:
Incorporation of key S/CAP goals and strategies into the Comp Plan as Comp Plan
policies and programs;
“Cross-walk” and identification and resolution of potential conflicts between the drafts;
Incorporation of the entire S/CAP into the Comp Plan "by reference," acknowledging
that the S/CAP will be a living document which is likely to be revised and updated more
frequently than the Comp Plan.
Exploration of Comp Plan references within the S/CAP as well.
Attachment B includes the handout prepared for the sustainability summit that summarized
our initial approach to the integration of these two planning efforts.
(Note: As part of the Council’s parallel discussion of the revisions to the Comprehensive Plan, it
may be helpful to discuss the value of formally aligning more of the City’s planning efforts like
the S/CAP, the Urban Forest Master Plan, the Parks and Recreation Master Plan and detailed
area plans with the General Plan (after its adoption) that forms the core of our current
Comprehensive Plan.)
Environmental Review
Plans like the S/CAP are subject to review under the California Environmental Quality Act
(CEQA) if they establish mandatory policies or implementation actions that may have a
significant environmental impact (good or bad). This evening’s recommended action would
involve adoption of a policy “framework” and direction that is viewed as non-binding and thus
would not be subject to CEQA. Following Council consideration of the SIPs, environmental
review (potentially in the form of a separate “negative declaration” or relying on the Comp Plan
EIR) would have to occur if Council chooses to adopt the S/CAP with mandatory policies,
principles and actions.
Attachments:
ATTACHMENT A: SCAP "Framework" (PDF)
ATTACHMENT B: Handout Regarding SCAP & Comp Plan Relationship (PDF)
ATTACHMENT C: S/CAP Framework Excerpt: Guiding Principles, Decision Criteria, and
Design Principles Summary (DOCX)
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 1 of 52
Framework, Principles, Guidelines,
Goals & Strategies
November 2016
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 2 of 52
FORWARD .........................................................................................................................................4
INTRODUCTION .................................................................................................................................5
A ROADMAP: TOWARD A CARBON NEUTRAL CITY..............................................................................6
PALO ALTO’S GREENHOUSE GAS BASELINE AND TRENDS ..................................................................................6
A ROADMAP FOR “80 X 30” .....................................................................................................................9
GUIDING PRINCIPLES ............................................................................................................................. 18
1. MOBILITY .................................................................................................................................. 20
1.1 GOAL: EXPAND NON-AUTO MOBILITY OPTIONS ................................................................................... 20
1.2 GOAL: CREATE THE RIGHT INCENTIVES FOR MOBILITY ............................................................................ 22
1.3 GOAL: SEEK BALANCED DEVELOPMENT ............................................................................................. 22
1.4 GOAL: REDUCE THE CARBON INTENSITY OF VEHICULAR TRAVEL ............................................................... 23
2. BUILDING ENERGY, EFFICIENCY AND ELECTRIFICATION ............................................................... 25
2.1 GOAL: REDUCE GHG EMISSIONS AND ENERGY CONSUMPTION IN BUILDINGS THROUGH ENERGY EFFICIENCY AND
DESIGN .............................................................................................................................................. 26
2.2 GOAL: USE PERFORMANCE REQUIREMENTS AND TRANSPARENCY TO DRIVE LEARNING AND ACCOUNTABILITY
AROUND BUILDING EFFICIENCY................................................................................................................. 27
2.3 GOAL: REDUCE NATURAL GAS USE IN BUILDINGS THROUGH ELECTRIFICATION.............................................. 28
2.4 GOAL: REDUCE THE CARBON INTENSITY OF NATURAL GAS USE ................................................................ 29
3. ZERO WASTE AND THE CIRCULAR ECONOMY ............................................................................. 30
3.1 GOAL: DIVERT 95% OF WASTE FROM LANDFILLS BY 2030, AND ULTIMATELY ACHIEVE ZERO WASTE TO LANDFILLS
30
3.2 GOAL: MINIMIZE ENERGY USE AND POLLUTANT FORMATION FROM WASTE COLLECTION, TRANSPORTATION AND
PROCESSING ........................................................................................................................................ 30
4. WATER MANAGEMENT ............................................................................................................. 32
4.1 GOAL: REDUCE CONSUMPTION OF WATER ......................................................................................... 32
4.2 GOAL: UTILIZE THE RIGHT WATER SUPPLY FOR THE RIGHT USE ................................................................. 32
4.3 GOAL: ENSURE SUFFICIENT WATER QUANTITY AND QUALITY ................................................................... 32
4.4 GOAL: PROTECT THE BAY, OTHER SURFACE WATERS, AND GROUNDWATER ................................................ 32
4.5 GOAL: LEAD IN SUSTAINABLE WATER MANAGEMENT ............................................................................ 32
5. MUNICIPAL OPERATIONS – LEADING THE WAY .......................................................................... 34
5.1 GOAL: CREATE ENERGY AND WATER EFFICIENT CITY BUILDINGS ............................................................... 34
5.2 GOAL: MINIMIZE EMISSIONS AND MAXIMIZE EFFICIENCY OF THE CITY FLEET ............................................... 35
5.3 GOAL: “DEFAULT TO GREEN” PROCUREMENT FOR PRODUCTS AND SERVICES ............................................. 35
5.4 GOAL: EMBED SUSTAINABILITY IN CITY MANAGEMENT SYSTEMS, PROCESSES AND OPERATIONS ...................... 36
6. ADAPTING TO CLIMATE CHANGE & SEA LEVEL RISE .................................................................... 37
GUIDING PRINCIPLES FOR SEA LEVEL RISE RESPONSE .................................................................................... 39
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 3 of 52
6.1 GOAL: PLAN FOR COMING CHANGES IN OUR CLIMATE AND ENVIRONMENT ................................................. 40
6.2 GOAL: PROTECT THE CITY FROM CLIMATE CHANGE INDUCED HAZARDS ...................................................... 40
6.3 GOAL: ADAPT TO CURRENT AND PROJECTED ENVIRONMENTAL CONDITIONS ............................................... 40
6.4 GOAL: EMPOWER THE LOCAL COMMUNITY AND FOSTER REGIONAL COLLABORATION .................................... 40
7. NATURAL ENVIRONMENT .......................................................................................................... 42
7.1 GOAL: RENEW, RESTORE AND ENHANCE RESILIENCE OF OUR NATURAL ENVIRONMENT .................................. 42
7.2 GOAL: ALIGN S/CAP PLANNING FOR THE NATURAL ENVIRONMENT WITH OTHER CITY PLANS ........................ 42
7.3 GOAL: MAXIMIZE CARBON SEQUESTRATION AND STORAGE IN THE NATURAL ENVIRONMENT ........................ 42
8. PALO ALTO’S UTILITY OF THE FUTURE ........................................................................................ 43
8.1 GOAL: ADVANCE SMART GRID STRATEGIES ......................................................................................... 43
8.2 GOAL: EVALUATE AND ADAPT THE CPAU BUSINESS MODEL ................................................................... 43
8.3 GOAL: CONTINUE TO ADVANCE CARBON NEUTRALITY ........................................................................... 43
9. COMMUNITY BEHAVIOR, CULTURE & INNOVATION ................................................................... 45
9.1 GOAL: PROVIDE A PLATFORM FOR COMMUNITY CHANGE IN CULTURE, BEHAVIOR AND INNOVATION ................. 45
10. FINANCING, FUNDING AND INVESTMENTS ............................................................................... 47
10.1 GOAL: UTILIZE DIVERSE FINANCIAL PATHWAYS TO DRIVE S/CAP IMPLEMENTATION ................................... 48
11. IMPLEMENTATION: TURNING VISION INTO ACTION ................................................................. 49
MONITORING AND TRACKING PROGRESS ................................................................................................... 49
CONCLUSION ................................................................................................................................... 51
GLOSSARY ....................................................................................................................................... 52
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 4 of 52
FORWARD
We live in a time of challenge and change. The California economy, powered by the innovation engine of Silicon
Valley, anchored in Palo Alto, has transformed the world. Companies like Google, Twitter, and Facebook have
transformed the way we live and work. Now the world threatens to transform California. The drought—or, as
some suggest, the “multi-decadal mega-drought”1—challenges not just our lawns, agriculture and hydroelectric
power supplies, but the premise on which California civilization was built. Climate chaos may not devastate us the
way that it threatens to devastate coastal regions from Bangladesh to south Florida, but heat, flooding and super
storms will take their toll, and will take hundreds of billions of dollars to adapt to.
And yet… this cloud presents a silver lining. Perhaps a golden one. For in the challenge of responding to climate
change, we find ourselves facing what Pogo called insurmountable opportunities, what those wild-eyed radicals at
Goldman Sachs see as the massive economic opportunity of a new energy economy–once again anchored here.
We are called upon to lead. Many would say the United States has lagged in response to climate challenge,
compared to Europe, or China, though President Obama’s recent Executive Orders on emissions and energy has
called the federal government to the challenge. Many would say that California has led in response to climate
challenge–from revolutionizing utility regulation in the 1970s to driving the market for clean energy to our world-
leading climate goals–now ratcheted up again by Governor Brown's recent Executive Orders on emissions, energy
and water. Many would say that Palo Alto has been a leader in this process, with our early climate action plan, our
carbon neutral electricity, and our actions to support green buildings and electric vehicles. Well, it's time for us to
lead again, with a new sustainability and climate action plan that sets a new bar for leadership, that builds quality-
of-life, prosperity and resilience for this community, and that sets an example once again for other communities to
emulate.
We must understand and prepare for the risks ahead: climate change, with hotter and drier weather, combined
with sea level rise and flooding; disruptions in resource flows and human migrations; the rise and collapse of
companies and even industries; and the challenge of reinventing a way of life that was based on conditions that we
may never see again.
This plan identifies a pathway to reduce our emissions 80% by 2030. Governor Brown has proposed 40% emissions
reductions for California by 2030. Palo Alto is already at 36%. But achieving that next 40% will not be easy, since it
will require transforming transportation and dramatically reducing the climate impact of our use of natural gas for
heating our buildings and water.
Because we can do this. Here.
1 http://www.climatecentral.org/news/is-the-wests-dry-spell-really-a-megadrought-16824
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 5 of 52
INTRODUCTION
As the heart of the region that drives the eighth largest economy in the world, what is created in Palo Alto has
influence far beyond its borders. Palo Alto has made impressive—and in some cases remarkable—progress toward
reducing its carbon impacts, greenhouse gas emissions, and resource consumption since establishing its first
Climate Protection Plan in 2007.
While cities around the world ratchet up their own sustainability initiatives, Palo Alto will need to act boldly in
order to maintain its legendary leadership position—and to ensure the wellbeing of this community in the face of
the challenges ahead.
In the nine years since Palo Alto created one of the first climate protection plans in United States, the world has
gotten hotter, the west has gotten dryer, and more cities have stepped into the ranks of climate leadership.
Palo Alto is poised to take the next step in climate and sustainability leadership. The Sustainability and Climate
Action Plan (S/CAP) is Palo Alto’s ambitious plan to create a prosperous, resilient city for all residents. To support
Palo Alto’s leadership position on climate protection, the S/CAP provides a roadmap for how the City will continue
its environmental stewardship, and exceed state requirements for greenhouse gas (GHG) emission reductions.
The Framework is intended as a strategic plan that sets direction and overall goals, suggests initial priority actions
and proposes high-level implementation pathways to achieve them. This document—a subset of the draft S/CAP
presented to Council in April—provides the overall strategic framework for the SCAP, including goals, key strategic
initiatives to meet those goals, and principles, guidelines and criteria to guide Council, staff and community in the
development of implementation plans to fulfill these goals. Staff will bring initial 2016-2020 implementation
plans—including both actions from the April draft that have been removed from this Framework, and additional
actions that have been developed by staff teams over the last six months—to Council for view and action in the
coming months.
The S/CAP presents a scenario, not a prediction. It presents a clear direction—move rapidly toward deep de-
carbonization through a suggested portfolio of measures that show net positive financial benefit, and an estimate
of the upfront investment required to generate those benefits. The specific measures, rates of adoption and
impacts presented here are best estimates based on currently available information in a rapidly changing
technology landscape; in order to be agile, adaptive and effective in the face of these changes, Palo Alto will
update the S/CAP every five years, and develop more granular five-year work plans and short-term programs,
rather than attempt to build a detailed 14-year work plan.
The time to act is now. In this new climate action plan, we identify a roadmap to move from carbon neutral
electricity to a carbon neutral utility—and ultimately towards a carbon neutral city.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 6 of 52
A ROADMAP:
TOWARD A CARBON NEUTRAL CITY
Palo Alto’s Greenhouse Gas Baseline and Trends
By 2015, Palo Alto had already reduced GHG emissions an estimated 36% since 19902—a remarkable achievement
in 24 years, with most of it accomplished in the ten years since 2005—largely as a result of the leadership of Palo
Alto Utilities and the City Council’s 2013 commitment to carbon neutral electricity. Palo Alto’s largest remaining
sources of greenhouse gas emissions are road transportation (approximately 65%) followed by natural gas use
(approximately 26%). Figure 2 illustrates this trend, and Figure 3 provides another view of the relative size of Palo
Alto’s emissions sources in 2015.
The estimated 36% GHG reductions to date were achieved through building efficiency measures and introduction
of carbon neutral electricity (as well as societal trends such as more efficient appliances, not shown explicitly here).
Over the next 13 years, a variety of external trends (designated in this Plan as “business as usual 1” or BAU1),
including Federal and state policy (such as building efficiency and vehicle efficiency standards) and demographic
changes, are expected to reduce Palo Alto emissions to an estimated 45% below 1990 emissions by 20303—in line
with the State of California’s recently approved 2030 reduction target of 40%. Initiatives that the City has already
approved or set in motion (such as existing City of Palo Alto Utilities (CPAU) efficiency incentive programs, Palo
Alto’s existing Green Building Ordinance and Reach Code, and the Bicycle and Pedestrian Plan), will bring emissions
down to an estimated 52% of 1990 levels—provided Council maintains support for existing programs and approves
these programs when they come before them. This reflects Palo Alto’s longstanding commitment and initiatives
already underway to drive deep carbon reductions ahead of the state or those being pursued by most other cities.
Even though these Palo Alto plans are both aggressive and innovative, for the purpose of this report we categorize
them as “business as usual “—since these efforts are already in the queue.
The additional GHG reduction between those already “in-the-pipeline” reductions and the 80% reduction target
for 2030 is about 224,600 MT CO2e4, and is Palo Alto’s target “GHG reduction budget.” The Draft S/CAP projects
that 117,900 MT CO2e, or more than half of the needed additional reductions, can come from mobility related
measures, 97,200 MT CO2e, or just under half from efficiency and fuel switching measures (largely in buildings),
and 9,500 MT CO2e, or 4% from continuation and extension of Palo Alto’s zero waste initiatives. The Draft S/CAP
also proposes other sustainability measure that don’t have direct or easy to determine GHG impacts but that are
important for other reasons, such as water sustainability, health of the natural environment and community
resilience.
2 Palo Alto emissions in the 1990 baseline year are estimated at 780,119 MTCO2e, a restatement of prior estimates
based on revised analyses using updated emissions models. Most emissions noted in this report as called
“estimates,” since only utility consumption (electricity, natural gas and water) are measured. Transportation
emissions are modeled every few years; solid waste related emissions are calculated using established EPA
protocols. Solid waste related emissions were not included in the CompPlan DEIR. 3 Based on the “business as usual” analysis conducted for the CompPlan DEIR. 4 MT CO2e = metric tons of CO2 equivalent
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 7 of 52
Figure 1. Palo Alto Community-wide GHG Emissions (MT CO2e)
Figure 2. Palo Alto 2015 Community-wide GHG Emissions Sectors
A detailed emissions analysis can be found in Appendix D.
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1990 2005 2012 2013 2014 2015
Landfilling Recyclable Material
Lifecycle Emissions From Annual
Waste to Landfill
Wastewater Process Emissions
Landfill Fugivitive Emissions
Natural Gas Leakage
Electricity
Natural Gas
Road Travel
Road Travel
65%
Natural Gas
27%
Natural Gas
Leakage
1%
Landfill Fugivitive
Emissions
2%
Wastewater
Process Emissions
1%
Lifecycle Emissions
From Annual
Waste to Landfill
1%
Landfilling
Recyclable
Material
3%
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 8 of 52
Figure 3. Overview of Palo Alto GHG Reduction Target relative to Business-as-Usual (MT CO2e)
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 9 of 52
A Roadmap for “80 x 30”
Palo Alto has substantially exceeded the 20% reduction goals set by Council in 2007 Climate Protection Plan, and is
positioned to establish new goals for Palo Alto to continue its global leadership, commit to a low- or zero-carbon
future, and create a roadmap to that future.
This plan focuses on pathways to a low-carbon future, and initiatives addressing water, green infrastructure,
adaptation and regeneration as part of a holistic framework for sustainability. Specifically, it contains Goals
and Strategies for reducing Palo Alto’s GHG emissions from the current level of 36% below 1990 levels to 80%
below 1990 levels by 2030 (“80x30”), 20 years ahead of the State of California 80x50 target. This represents a
GHG reduction “budget” of 260,000 tons (as shown in Figure 5 and detailed below), and will be possible only if
Palo Alto continues its longstanding commitment to sustainability and if a number of assumptions that are
outside the City’s control come to fruition.
Figure 4: 80x30 GHG Reduction Budget (MT CO2e)
Reducing greenhouse gas emissions in order to avoid potentially catastrophic climate change is a key driver
for the S/CAP, but it is not the only indicator for sustainability. Therefore, the S/CAP is organized around
seven sustainability chapters, including some without direct quantifiable impacts on greenhouse gas
emissions, but which are central to a holistic approach for sustainability in Palo Alto that protects and
enhances our natural resources for generations to come. These are summarized below, and described in
more detail in the chapters that follow.
Chapters for Sustainability and Climate Action
S/CAP’s Goals and Strategies for GHG reduction are summarized here:
• Mobility:
o Make it more convenient not to drive by developing responsive, multimodal, service-focused
transportation services
o Shift subsidies from free parking to support non-SOV travel
o Encourage land use patterns that reduce both congestion and climate impacts.
153,400
97,200
117,900
48,500
80,800
272,800
780,119
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1990 2030
Baseline emissions
GHG reductions achieved
through 2014
BAU1 - State measures
through 2030
BAU2 - Existing Palo Alto
initiatives
S/CAP measures (Mobility)
S/CAP measures (Energy in
Buildings)
S/CAP measures (Waste)
Remaining emissions
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 10 of 52
o Support policy changes that promote EV charging infrastructure in public and private
development and that encourage EV use by residents and commuters
• Building Energy Efficiency & Electrification:
o Pursue large gains in energy, and materials efficiency in buildings and operations
o Pursue the adoption of an Energy Reach Code that drives energy efficiency through our building
codes
o Emphasize integrative design and streamlined policy approaches
o Explore building stock upgrades to Zero Net Energy or Net Positive through design, efficiency,
renewables and bundled services packages
o Encourage all-electric new construction (if technically and legally feasible, cost effective and
directed by City Council)
o Rapidly upgrade existing building stock resource efficiency (residential and commercial)
o Support a systematic shift from natural gas to all-electric systems5 and/or renewable natural
gas (if technically and legally feasible, cost-effective and directed by City Council)
• Zero Waste and the Circular Economy
o Divert 95% of Waste from Landfills by 2030, and ultimately achieve Zero waste
o Minimize Energy and Pollution from waste collection, transportation and processing
• Water Management:
o Reduce Water Use
o Utilize the right water quality for the right use
o Ensure sufficient water quality and quantity
o Protect the Bay, other Surface Waters, and Groundwater
o Lead in Sustainable Water Management
• Sea Level Rise Response:
o Plan for the Coming Changes in our Climate and Environment
o Protect the City from Climate Change-Induced Hazards
o Adapt to Current and Projected Environmental Conditions
o Empower the Local Community and Foster Regional Collaboration
• Municipal Operations – Leading the Way o Create Energy and Water Efficient City Buildings
o Minimize City Fleet Emissions and Maximize its Efficiency
o “Default to Green” purchasing for products and services
o Embed sustainability in city procurement, operations and management
o Set targets and tracking performance metrics for City sustainability performance
o “Walk the talk” by ensuring the City goes first on any sustainability actions requested or required
of the community
• Natural Environment Protection:
o Renew, Restore, and Enhance resilience of our natural environment
o Align Planning for Management of our Natural Environment with the S/CAP and other key City
Plans
o Maximize Carbon Sequestration and Storage in the Natural Environment
• Utility of the Future:
o Adapt CPAU offerings and business model to potentially disruptive challenges facing the utility
industry, including distributed generation & storage, and “grid defection”
o Explore micro-grids, nano-grids and other resilience strategies
• Community Behavior and Culture Change
o Challenge community to consider the impact on future generations of choices in lifestyle,
purchases and investment.
o Engage and support community through neighborhood initiatives, interactive tools, etc.
• Information systems:
5 See analysis of electrification strategies, Staff Report 5971, August 2015
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 11 of 52
o Advance “smart city” platforms for transportation, utilities, buildings, operations, finance, etc.
o Provide transparent reporting and open data to track performance, build knowledge and fuel
innovation
• Financing Strategies:
o Finance cost-effective initiative through multi-channel, non-general fund, local and external
investment in support of these goals, to the extent permitted by existing legal and regulatory
framework applicable to the City.
These measures will require strategies that address three domains of action (shown in Figure 5), all of which
are critical to realizing the sustainability vision:
• institutions that form the structure of policies and programs,
• behavioral change to modify mindsets and personal actions, and
• financial considerations that drive markets.
Figure 5. S/CAP Three Domains of Action
A few core moves
Palo Alto’s sustainability strategies ultimately rely on a few “core moves” for reducing impact on the environment
and GHG emissions, and doing so in ways that improve the quality of life of our community:
• Reducing resource use, for example through energy efficiency measures;
• Shifting resource use impacts, for example by electrification;
• Transforming systems, for example by outcompeting single occupancy driving with mobility services.
REDUCE SHIFT TRANSFORM
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 12 of 52
• Energy efficiency
• Water conservation
• Walking/biking instead of
driving
• Zero waste
• Convert to electric vehicles
• Electrify water and space
heating
• Greywater or rainwater
instead of potable water
• Mobility as a Service
instead of individual car
ownership
• Walkable/bikeable
neighborhoods and Transit-
oriented development
• Utility of the Future
Zones of Control and Influence
Palo Alto’s ability to enact these core moves throughout the community is embedded within a regional, state and
global context of regulatory and jurisdictional boundaries. Figure 6 illustrates Palo Alto’s levels of control and
influence.
• City government has control over its own operations, including municipal buildings, fleet, procurement
and service delivery—for example, environmentally preferable purchasing.
• It can establish policies, codes, mandates, regulations and standards that drive the GHG emissions
reductions of our residents and workforce—for example, our photovoltaic (PV) readiness requirements
for new construction and major renovations.
• It can influence community behavior through education, outreach and voluntary programs—such as
CPAU’s incentive programs.
• And it can work with neighboring jurisdictions and regional authorities to develop collaborative
initiatives—such as regional transportation initiatives— and to influence regional, state and national
policy.
Figure 6. Palo Alto Jurisdictional Influence and Control
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 13 of 52
Levers, Goals, Strategies and Actions
Figure 7 presents the key components of Palo Alto’s path to further GHG reductions:
• The primary levers with which we can shift emission trends
• The goals we will establish to activate those levers
• The strategies and actions by which we will achieve those goals
Figure 8 summarizes the emissions reduction potential of the proposed strategies, and the key players responsible
for implementation, and Figure 9 shows this summary by goal. For several strategies, Palo Alto will need to work
with regional and state entities to advocate for policies and programs to support Palo Alto efforts and initiatives.
The levers, goals, strategies and actions are based on Palo Alto’s baseline emissions sources, existing and planned
initiatives and a literature review of best practices for city climate action planning for effective new GHG reduction
opportunities. (Note: Not all the strategies and actions in this Plan are summarized here, since some don’t have
direct GHG reduction impacts, or those impacts are impossible to estimate at this time.)
Figure 7. Overview of 3 Key Levers, Goals and Strategies for GHG Reductions
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 14 of 52
Figure 8. S/CAP Strategies to Achieve 80 x 30 Goal6
Lev
ers
Goals Strategy Jurisdiction
PA = Palo Alto
R = Regional
S = State
GHG
Avoided in
2030
(MT CO2e)
Percent of Total
S/CAP Emissions
Reductions
Percent of Reductions
from 1990 Baseline
Re
t
h
i
n
k
i
n
g
M
o
b
i
l
i
t
y
Expand
non-auto
mobility
options
T-FAC-1. Expand bicycle
infrastructure PA
8,400
4% 1%
T-FAC-2. Expand transit
options PA, R
19,200
9% 2%
T-FAC-3. Grow ridesharing
services and mobility apps
PA
6,400
3% 1%
Create
right
financial
incentives
T-INC-1. Provide universal
transit passes PA
7,600
3% 1%
T-INC-2. Implement parking
pricing and feebates
PA
18,400
8% 2%
Adapt land
use
patterns
T-LU-1. Increase zero-impact,
mixed use housing
PA
2,900
1% 0.5%
Reduce
carbon
intensity of
vehicles
T-EV-1. Electrify Palo Alto-
based vehicles
PA
25,200
11% 3%
T-EV-2. Electrify inbound
vehicles
PA, R
29,800
13% 4%
El
e
c
t
r
i
f
y
i
n
g
o
u
r
C
i
t
y
Reduce use
in existing
businesses
NG-COMM-1. Electrify water
heating in businesses
PA, S
21,200
9% 3%
NG-COMM-2. Electrify space
heating in businesses
PA, S
15,900
7% 2%
NG-COOK-1. Electrify
commercial cooking
PA, S
11,300
5% 1%
Reduce use
in existing
homes
NG-RES-1. Electrify
residential water heating
PA, S
13,600
6% 2%
NG-RES-2. Electrify
residential space heating
PA, S
23,300
10% 3%
Reduce use
in new
buildings
NG-GAS-1. Encourage all-
electric new buildings
PA, S
11,900
5% 2%
Z
e
r
o
W
a
s
t
e
Enhance
programs
and
infrastructu
re
SW-1. Achieve zero waste PA
9,500
4% 2%
6 The figures in this table are estimates based on staff and consultant analyses of the estimated GHG reductions
from each strategy. These estimates are built on documented assumptions, and are subject to many factors
(including technology and costs) that could change over the 2030 horizon.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 15 of 52
TOTAL 224,600 100% 29%
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 16 of 52
Figure 9. Summary of Anticipated S/CAP Emissions Reductions
Key assumptions
The key assumptions underlying the projections for the impacts of these initiatives are shown in Table 8. Some are
controversial, but will hopefully provoke a grounded exploration of options and consequences.7 Many are
ambitious, and will require rapid rates of uptake of new technologies. For example, S/CAP projects that 90% of
vehicles owned in Palo Alto will be EVs by 2030. Is that possible? We don’t know, given that the State projects only
30%. More useful questions might be “What measures could we undertake to accelerate that change, or to take
advantage of potential market changes that move more quickly than projected (as we have seen for years with PVs,
EVs and other technologies)?” and “What policies could we pursue that might eliminate barriers that would
otherwise hinder the rapid expansion and proliferation of Electric Vehicles in Palo Alto?”
The relative GHG reduction impacts (in metric Tons CO2e) and associated “mitigation costs” (in $/mT) are shown in
Figure 10. (The measures further to the right indicate greater impact; the measures higher on the chart indicate
more favorable economics.)
7 Note that in all these scenarios, reductions are partially driven by factors outside our control, including Federal
and state policy, legal and regulatory constraints, cost-effectiveness of measures and technology, the pace of
technology innovation, and behavioral changes by our population. In this way, the S/CAP may be similar to
California Air Resources Board’s (CARB’s) update to the State’s scoping plan, which suggests that near-term actions
and targets need to be specific, quantifiable, and within an agency’s control, while longer term actions and targets may
require changes in technology and/or actions by others, and could be less precise. It should be noted, however, that
the Draft S/CAP in some cases builds on the assumptions in the State’s Scoping Plan, suggesting – for example –
that the City seek to achieve a level of Electrical Vehicle (EV) ownership (for residents and commuters) three times
what the CARB is targeting state-wide for 2030.
Expand non-auto
mobility options
15%
Create right
financial incentives
for non-auto
12%
Adapt land use
patterns
1%
Reduce carbon
intensity of
vehicles
25%
Reduce use in
existing homes
16%
Reduce use in
existing businesses
22%
Reduce use in new
buildings
5%
Zero waste
4%
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 17 of 52
Figure 10. Prioritizing Actions by GHG Impact & Mitigation Cost8
The Power of “Unreasonable” Goals
The SCAP goals are ambitious, as called for by the Paris climate agreement. They also may be uniquely achievable
by Palo Alto, because of the city’s significant head start, its carbon neutral electricity platform and its control of
Palo Alto Utilities. They are in any event not certain to be successfully accomplished, since they depend on many
variables, both within our control—such as the desirability of CPAU services and incentives and the effectiveness of
City programs—and many factors outside our control—such as the pace of price/performance improvement of
electric vehicles and the effectiveness of State climate programs.
Despite that uncertainty, stretch goals drive innovation better than safe ones. Setting a big goal and perhaps not
fully reaching will likely get us farther than setting a safe goal and reaching it, especially in a time of rapid change.
Our key question should not be “Are we confident we can achieve it?” No one knows if ambitious climate goals are
achievable, based on today’s know how and experience; Johanna Partin, Director of the Carbon Neutral Cities
Alliance, observes that "most of the CNCA cities…have a pretty good sense of how they're going to get to
somewhere between 25-70% of their target by 2020/25/30, but no one yet knows exactly how they're going to get
to 100% of their goal.” We only know that we must do our best to find ways to achieve them.
Better questions might be: Is the goal worthy? Is the strategic direction right? Are the first steps right? If so, then
let's get going, and re-evaluate goals and progress in five years; let’s support proposed goals with bottom up
8 This chart presents a synthesis of staff and consultant analyses of the “marginal abatement costs” of key GHG
reduction strategies, based in the estimated GHG reductions from each strategy and the estimated investments
that would be required to achieve them.
($700)
($600)
($500)
($400)
($300)
($200)
($100)
$0
$100
$200
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
Ma
r
g
i
n
a
l
A
b
a
t
e
m
e
n
t
C
o
s
t
(
$
/
M
T
C
O
2
e
)
Emissions Avoided in 2030 (MT CO2e) Expand bicycle infrastructure
Expand transit options
Grow ridesharing services and
mobility apps
Provide universal transit passes
Implement parking pricing
Electrify Palo Alto-based
vehicles
Electrify inbound vehicles
Electrify water heating in
businesses
Electrify space heating in
businesses
Electrify commercial cooking
Electrify residential water
heating
Electrify residential space
heating
Encourage all-electric new
buildings
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 18 of 52
analyses, assessing "what combination of measures might make it possible to meet that specific goal?" As General
(and later, President) Dwight D. Eisenhower observed, “Plans are useless. Planning is essential.”
Guiding Principles
The Vision Statement for the 1998 Comprehensive Plan Governance Element declares that:
“Palo Alto will maintain a positive civic image and be a leader in the regional, state, and national policy
discussions affecting the community. The City will work with neighboring communities to address
common concerns and pursue common interests. The public will be actively and effectively involved in
City affairs, both at the Citywide and neighborhood levels.”9
S/CAP builds on that vision with these guiding principles as a basis for effective and sustainable decision-making:
• Consider “sustainability” in its broadest dimensions, including quality of life, the natural environment and
resilience, not just climate change and greenhouse gas emissions reductions.
• Address the sustainability issues most important to the community and select most cost-effective
programs and policies—recognizing that this will entail moral and political, as well as economic, decision
factors.
• Seek to improve quality of life as well as environmental quality, economic health and social equity.
• Foster a prosperous, robust and inclusive economy.
• Build resilience—both physical and cultural—throughout the community.
• Include diverse perspectives from all community stakeholders, residents, and businesses.
• Recognize Palo Alto’s role as a leader and linkages with regional, national and global community.
Design Principles
In both evaluating this S/CAP, and in developing and evaluating future programs guided by it, Palo Alto is guided by
these design principles:
• Focus on what’s feasible—recognizing that technology and costs are shifting rapidly.
• Prioritize actions that are in the City’s control – recognizing that we can urge others to join us, but leading
by example is most effective
• Be specific about the actions and costs to achieve near-term goals, while accepting that longer-term goals
can be more aspirational
• Use ambient resources: Maximize the efficient capture and use of the energy and water that fall on Palo
Alto.
• Full cost accounting: Use total (life cycle) cost of ownership and consideration of externalities to guide
financial decisions, while focusing on emission reductions that achievable at a point in time (i.e. not on life
cycle emissions).
• Align incentives: Ensure that subsidies, if any, and other investment of public resources encourage what
we want and discourage what we don’t want.
• Flexible platforms: Take practical near term steps that expand rather than restrict capacity for future
actions and pivots.
Decision Criteria
In selecting specific programs and policies to pursue, and in allocating public resources to support them, Palo Alto
will be guided by these decision criteria:
9 http://www.paloaltocompplan.org/plan-contents/governance-element/
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 19 of 52
• Greenhouse gas impact
• Quality of life impact
• Mitigation cost
• Return on investment (ROI)
• Ecosystem health
• Resilience
• Impact on future generations
Overarching Policies and Legal Issues
The proposals set forth in the draft S/CAP will need to be specifically analyzed in the context of applicable local,
state and federal legal requirements, policy tradeoffs, budget and cost considerations, technological feasibility and
economic impacts to the City prior to any adoption. Implementation of any of the new policies and programs
described in the draft S/CAP will also be subject to the same considerations, as determined periodically by the Palo
Alto City Council, and will continue to take into account existing local, state, and federal laws, regulations, and
programs to avoid unnecessary duplication, minimize uncertainty, and maximize predictability.
Measures presented here constitute a preliminary menu of options for Council to consider as potential methods
for achieving greenhouse gas reduction goals adopted by Council; the proposals set forth in the draft S/CAP are for
discussion and the City of Palo Alto.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 20 of 52
1. MOBILITY
Road transportation represents about 61% of Palo Alto’s carbon
footprint—and a congestion headache for everyone. Palo Alto’s
existing Comprehensive Plan calls for reducing reliance on the
automobile, and we've made some progress, with reductions in
commute trips by Single Occupant Vehicles (SOV) from 75% to 62%
between 2000 and 2014 and to 55% for commuters to Downtown.
We’ve also dramatically reduced car trips to Palo Alto schools, with 44% of high school students commuting by
bicycle. Beyond our borders, federal CAFE standards have reduced the carbon intensity of the US vehicle fleet. But
congestion continues unabated, and the majority of Palo Altans, and commuters to Palo Alto still make SOV trips in
fossil fuel powered vehicles.
GHGs from road travel are a function of two factors: Vehicle Miles Traveled (VMT), and the carbon intensity of that
travel (GHG/VMT). Reducing GHG/VMT is largely a function of vehicle technology, driven for example by Federal
CAFE standards, state policy, improved fuel efficiency, electrification and customer adoption. Most of these factors
are outside the purview of cities, but Palo Alto has some ways to influence VMT, by developing attractive
alternatives to SOV trips, and GHG/VMT, largely by encouraging electrification of City, resident and commuter
fleets.
Traditional approaches to transportation—adding capacity by building roads and parking—send the wrong signals,
encourage SOV travel and add pain. But what if we asked a different question: How could we make it more
convenient for anyone, anywhere, anytime to not have to get into a car and drive?
The key tools the City has for doing so include:
• Optimizing transit
• Electrifying Vehicles
• Incentivizing People to change their travel modes
• Integrating Transportation Network Companies (TNCs) and
Autonomous Vehicles
• Implementing land use policies that support these shifts.
1.1 Goal: Expand non-auto mobility
options
This goal focuses on improving alternative modes of transportation to support
non-automobile based mobility. The key: making it more convenient for
anyone, anywhere, at any time, not have to drive by
• Expanding existing initiatives (such as bike infrastructure)
• Targeting specific populations with relevant non-SOV services that
they can afford
• Developing advanced, software-based solutions (MaaS)
• Continually tracking performance of these programs overtime
“Mobility as a Service” (MaaS) is an integrative approach that proposes to shift
the traditional focus from fixed transportation to flexible, responsive
transportation services designed to meet people’s diverse and changing needs
TDM/TMA: The City supports a number
of emerging transportation demand
management (TDM) initiatives including
its first Transportation Management
Association (TMA), which will develop,
manage, and market transportation
programs to reduce single occupancy
vehicle trips in the Downtown Core
area. The Comprehensive Plan Update
also provides an opportunity to
establish policies that outline when
TDM should be applied and programs
that specify how compliance will be
periodically measured and enforced.
TDM plans for individual development
projects can establish TDM
requirements and set enforceable SOV
mode-share targets. TDM plans would
establish a list of acceptable TDM
measures that include transit use,
prepaid transit passes, commuter
checks, car sharing, carpooling, parking
cash-out, bicycling, walking, and
education and outreach to support the
use of these modes. They should
provide a system for incorporating
alternative measures as new ideas for
TDM are developed.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 21 of 52
by providing seamless regional multi-modal mobility services, including improved transit, and bike share; dynamic,
on-demand shuttles; flexible first & last mile solutions; walkable/bikeable communities; and smart apps that
provide convenient access to all of these.
Figure 11. Mobility as a Service (MaaS) Schematic
Strategy 2030 Target 2030 GHG Emissions Reduction
T-FAC-1. Expand bicycle
infrastructure
Increase bike boulevard miles to 26
miles
Increase bike mode share, including
work commute trips, from 7% to 25%
8,400 MTCO2e
T-FAC-2. Expand transit options Increase transit ridership by 60% 19,200 MTCO2e
T-FAC-3. Grow ridesharing
services and mobility apps Increase in rideshare mode 6,400 MTCO2e
1.1.1 Strategy: Expand bicycle infrastructure (T-FAC-1)
1.1.2 Strategy: Expand transit options (T-FAC-2
1.1.3 Strategy: Grow ridesharing services and mobility apps (T-FAC-3)
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 22 of 52
1.2 Goal: Create the right incentives for mobility
Despite the goal in Palo Alto’s 1998 Comprehensive Plan to reduce dependence on the private automobile, the City
provides free parking in public lots and garages—thus incentivizing driving to the tune for $3600/year10—and has
plans to build additional parking capacity. Instead, Palo Alto will identify ways (starting with a paid parking study
this spring) to phase out automobile subsidies by charging for parking—ideally in coordination with neighboring
jurisdictions—and investing the proceeds (as Stanford has successfully done11) in alternatives like transit, bicycle
infrastructure, ride sharing, walkable neighborhoods, etc.
Strategy 2030 Target 2030 GHG Emissions Reduction
T-INC-1. Provide universal transit
passes
75% of residents and employees have
universal transit passes
7,600 MTC02e
T-INC-2. Implement parking
pricing
100% of City sites and 50% of private
sites have parking pricing
18,400 MTCO2e
1.2.1 Strategy: Provide universal transit access (T-INC-1)
1.2.2 Strategy: Implement parking pricing (T-INC-2)
1.3 Goal: Seek balanced development
Palo Alto can potentially reduce commute-related VMT though development patterns that support shorter
commutes and complete neighborhoods, by enabling people to live closer to where they work. This is a sensitive
and controversial topic, but its impact is so significant that it must be included here, and discussed and resolved in
the community.
Palo Alto has long had an imbalance between jobs and housing, with almost three times as many jobs as employed
residents in 2014. This imbalance between jobs and employed residents contributes to local and regional traffic,
greenhouse gas emissions, and other impacts, as some workers travel long distances between their residence and
workplace. The imbalance is projected to grow if the City does not take affirmative steps to address the issue
through the Comprehensive Plan Update. These steps could include:
• Increased housing densities
• Increased areas under existing maximum zoning rules
• Additional regulation of employment densities
• Additional commercial downzoning
This strategy would include adopting a land use and transportation scenario to enable additional growth and
development in transit accessible areas, provided that all such development was designed for low
traffic/energy/carbon/water impact and would be approved only with an integral plan resulting in no net increase
in vehicle trips to/from Palo Alto. (Mitigation Measure Trans1a in the Comprehensive Plan EIR would provide this
type of requirement.)
10 Amortized cost of providing parking spaces at investment of ~$60,000 per space. 11 Stanford’s program has reduced SOV rates from 72% to 42%, and avoided $107 million in capital expenditures
for parking structures that were no longer needed. See, for example, http://bit.ly/1RCmSS2
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 23 of 52
Vehicle Trip Cap:
Mountain View sets maximum parking requirements and eliminates
minimum off-street requirements, and targets 30-45% single-occupancy
vehicle mode share, depending on the density of employment within
buildings. One employer faces penalties of $100K for each 1% over the cap.
Similar caps are in place in Sunnyvale, Menlo Park and Cupertino.
A mitigation measure in the Comp Plan Draft EIR suggests a similar
approach, requiring aggressive TDM plans, with quantitative performance
measures and enforcement, as well as requirements to off-set any new
trips that cannot be reduced through TDM.
Strategy 2030 Target 2030 GHG Emissions Reduction
T-LU-1. Develop zero-impact,
mixed-use housing
Target 2.95 jobs-housing ratio12
2,900 MTCO2e
1.3.1 Strategy: Increase zero-impact, mixed-use, “transit-oriented” housing (T-
LU-1)
1.4 Goal: Reduce the
carbon intensity of
vehicular travel
Expanding the percentage of trips taken in EVs
would have the largest impact on emissions
from road transportation, which is in turn the
largest category of Palo Alto emissions. Since
the city’s electricity is 100% from renewable
resources, taking steps to encourage all new
vehicles purchased to be EVs or other zero
emissions technology would significantly
reduce emissions associated with on-road vehicles.
Palo Alto already has one of the highest rates of EV ownership in the country (estimated by staff at 3-4% of
registered vehicles), but several factors limit EV adoption, including price (which is dropping rapidly), total cost of
ownership (often poorly understood), and vehicle performance— especially “range anxiety.”
Initiatives to overcome these barriers, and keep Palo Alto’s EV adoption well ahead of the State’s aggressive goals,
could include: public education, target incentives and charging infrastructure development.
Based on the ratio of jobs to employed residents and an analysis of VMT, approximately 93% of Palo Alto’s
transportation-related emissions are estimated to be related to trips into or out of Palo Alto for work, shopping
and other purposes (i.e. the VMT is not associated with trips that are internal to Palo Alto). An estimated 78% of
the total vehicle trips have origins or destinations external to Palo Alto. 13
Strategy 2030 Target 2030 GHG Emissions Reduction
T-EV-1. Electrify Palo Alto-based
vehicles
90% of vehicles in Palo Alto are zero
emission
22,900 MTCO2e
12This jobs-housing ratio is expressed as the ratio between jobs and employed residents. Staff has analyzed the
GHG impacts of various job housing ratios. We have included a moderately aggressive option here, recognizing
that Council will determine appropriate targets; the alternate scenarios are available for Council’s consideration. 13 Estimated 95,742 jobs and 34,428 employed residents. (Source: 2016 Official City Data Set.) Estimates of
Internal, Internal-External, and External-Internal VMT and vehicle trips are from the Comp Plan Draft EIR p. 4.13-45.
S/CAP allocates road emissions differently than the Comp Plan analysis, where emissions from all trips, which are
assumed to be round trips, are equally split between inbound and outbound. Since potential strategies available to
Palo Alto to affect those trips are different for inbound vehicles than for those based in Palo Alto, the S/CAP
allocates these emissions based on trip origination.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 24 of 52
T-EV-2. Electrify inbound vehicles 50% of inbound vehicles (non-Palo Alto
based) are zero emission
27,000 MTCO2e
1.4.1 Strategy: Explore ways to expand charging infrastructure across Palo Alto
(T-EV-0)
1.4.2 Strategy: Electrify and decarbonize Palo Alto-based vehicles (T-EV-1)
1.4.3 Strategy: Electrify and decarbonize inbound vehicles (T-EV-2)
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 25 of 52
2. BUILDING ENERGY,
EFFICIENCY and
ELECTRIFICATION
Palo Alto has made remarkable progress in advancing energy
efficiency, through CPAU’s incentive programs and the City’s nation-leading Green Building Ordinances and Energy
Reach Codes, and in decarbonizing its electricity sector, through CPAU’s carbon neutral electricity (CNE) initiative,
which is largely responsible for Palo Alto’s remarkable 36% GHG emissions reduction to date. The CNE Resource
Plan, adopted in 2013, directed CPAU to eliminate fossil-generated electricity by (1) expanding purchases of long-
term renewable energy contracts to about half of Palo Alto’s electricity needs by 2017, (2) relying on existing
carbon-free hydroelectric resources for the other half of electric supply needs, and (3) purchasing short-term
renewable resources and/or renewable energy credits (RECs) to counterbalance emissions from remaining “brown”
or “market power purchases until those long-term renewable energy contracts are in the place.
Emissions from natural gas use currently represent ~25% of Palo Alto’s remaining carbon footprint.14 CNE opens to
opportunity reduce natural gas use through electrification—“fuel switching” various natural gas uses to
electricity—in addition to continued efficiency measures.
The vast majority of natural gas usage is related to today’s building stock (existing buildings), with commercial and
industrial buildings accounting for 63% of natural gas usage in the City. Palo Alto will first seek to reduce natural
gas usage through energy efficiency and conservation, followed by electrification of water heating, space heating
and cooking where cost effective. Figure 12 illustrates the estimated distribution of natural gas usage in Palo Alto.
14 Natural Gas (i.e., methane) is a potent greenhouse gas, with a global warming potential (GWP) at least 23
times that of CO2. Recent research suggests that the climate impacts may be 80-100% higher.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 26 of 52
Figure 132: Summary of Natural Gas Usage in Palo Alto Buildings
The S/CAP roadmap is based on six leverage points:
• Tenant improvement pathway: energy efficiency upgrades, and electrification requirements
• Voluntary retrofit pathway: Palo Alto Utilities incentive programs (point-of-sale/distributors and
contractors), education/outreach
• Predictive failure analysis: to anticipate potential equipment replacement opportunities…
• Replace-on-burnout: develop programs to quickly retrofit with efficient electric equipment, particularly
for small businesses.
• Time-of-sale pathway: energy efficiency upgrades and electrification requirements
• Institutional pathway: removing barriers by streamlining permitting, advocating at the state level to
address California Energy Commission (CEC) requirements for cost-effectiveness (so we can require
electric equipment), making it easier to “do the right thing” (service and convenience)
2.1 Goal: Reduce GHG emissions and energy consumption in
buildings through energy efficiency and design
Efficiency comes first. More efficient buildings require less electricity, natural gas and water, ultimately reducing
carbon emissions while minimizing demand on CPAU purchases and saving customers money. Reduced
electrical demand from efficiency—even of Palo Alto’s already carbon neutral electricity—provides more capacity
to meet electricity needs generated by the EV growth and the fuel switching initiatives described below.
New construction offers a unique opportunity to build zero net energy buildings with low or no incremental costs,
while existing buildings offer the largest opportunity to reduce total GHG emissions by improving their
efficiency over the lifecycle of the building. In parallel, measurement and verification are key to ensure
we meet the emission goals we have targeted. Finally, to achieve our emission goals we need to pursue
Zero Net Energy (ZNE) Buildings and Districts that focus on offsetting building energy needs through on-
site renewables at the building and district scale. California is requiring “net zero energy” for all new
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 27 of 52
residential construction by 2020, and all new commercial construction by 2030. Palo Alto is currently considering
whether and how to accelerate those deadlines in future Building Code cycles.
2.1.1 Strategy: Require advanced efficiency standards that exceed state
minimum requirements. (NG-EE-1.1, NG-EE-1.2)
2.1.2 Strategy: Examine the life cycle of buildings and determine appropriate
triggers in the permitting process to mandate deeper efficiency retrofits for
existing buildings.
2.1.3 Strategy: Require Net Zero (or Net Positive) buildings in advance of State
standards.
2.1.4 Strategy: Participate in the formation of Zero Net Energy District(s) in
collaboration with industry stakeholders.
2.1.5 Strategy: Ensure residents and businesses are well-informed about
advanced efficiency and electrification options.
2.1.6 Strategy: Accelerate new and existing CPAU programs to encourage
building efficiency and electrification.
2.2 Goal: Use performance requirements and transparency
to drive learning and accountability around building efficiency
In order to understand how new and existing building are operating before and after construction we
need benchmark and commissioning data. Transparent performance tracking can be an unusually
effective and economical tool for driving and ensuring improved building performance, and focusing
awareness on progress and opportunities.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 28 of 52
2.2.1 Strategy: Ensure buildings perform as designed, through commissioning
programs and other post-occupancy performance tracking and regulatory
processes.
2.2.2 Strategy: Drive performance improvement through benchmarking
programs that collect and report sustainability performance data on buildings in
Palo Alto.
2.3 Goal: Reduce natural gas use in buildings through
electrification
Reduce natural gas usage through energy efficiency and conservation, followed by electrification of
water heating, space heating and cooking where cost effective. Find ways to reduce or eliminate gas
use by encouraging the more efficient gas or all electric appliances such as cook tops and clothes driers.
2.3.1 Strategy: Periodically evaluate electrification of water heating and space
heating for cost-effectiveness and technical feasibility, and identify barriers and
policy levers.
2.3.2 Strategy: Incentivize all-electric new buildings. (NG-GAS-1)
2.3.3 Strategy: Incentivize electrification of existing buildings. (NG-RES, NG-
COMM, NG-COOK)
2.3.4 Strategy: Facilitate deployment of local distributed energy resources (PV,
demand response, energy storage, optimal EV charging, etc.)
2.3.5 Strategy: Develop retail rate design options and new customer financing
options to spur new efficiency and electrification investments
2.3.6 Strategy: Advocate for regulatory changes to accelerate efficiency and
electrification
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 29 of 52
2.4 Goal: Reduce the carbon intensity of natural gas use
Palo Alto will continue to explore opportunities to procure biogas and/or carbon offsets in the short
term, while working towards reduced natural gas consumption.
2.4.1 Strategy: Eliminate natural gas emissions with carbon offsets or biogas
(NG-OFF-1)
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 30 of 52
3. ZERO WASTE AND
THE CIRCULAR
ECONOMY
Reducing the amount of waste discarded in landfills is an
important strategy for both greenhouse gas reductions and
overall sustainability. Diverting waste from landfills occurs through product changes, material use reduction, reuse,
recycling and composting. .Equally important, these diversion strategies will create a “circular economy” where
materials, water and energy do not create waste or pollute, but rather contribute their value back into a
sustainable, circular cycle of human and ecosystem activity.
Achieving “zero waste” will require reducing the overall amount of waste generated within the City—through
purchasing decisions and material use reduction (and ultimately product design), as well as more effective sorting,
recovery and recycling.
In 2007, the City completed a Zero Waste Operational Plan established a goal of 73% diversion by 2011 and 90% by
2021— well beyond state requirements15. This new S/CAP sets a new goal of 95% Diversion by 2030.
3.1 Goal: Divert 95% of waste from landfills by 2030, and
ultimately achieve Zero Waste to landfills
3.1.1 Strategy: Perform new waste characterization and establish new
programs to reduce waste
3.1.2 Strategy: Improve existing programs to reduce waste
3.1.3 Strategy: Utilize the City’s Municipal Code and support State Extended
Producer Responsibility (EPR) laws to require more diversion, reuse and salvage
3.2 Goal: Minimize energy use and pollutant formation from
waste collection, transportation and processing
3.2.1 Strategy: Change waste collection fleet to lower carbon-use vehicles
3.2.2 Strategy: Use local and more efficient processing facilities
15 California Assembly Bill 939 was passed in 1989, and mandated local jurisdictions to meet a solid waste diversion
goal of 50% by 2000. Furthermore, each jurisdiction was required to create an Integrated Waste Management Plan
that looked at recycling programs, purchasing of recycled products and waste minimization.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 31 of 52
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 32 of 52
4. WATER
MANAGEMENT
Palo Alto has done an outstanding job of meeting annual water
use reduction requirements of the current “drought.” But both
potable water supplies and hydroelectric needs could be
challenged by long-term shifts in California’s precipitation
regime.
With shifting climate patterns16, significant uncertainty exists about whether drought conditions are the “new
normal” for California, with a possible “new normal” of less (and less reliable) precipitation. Moreover, most
climate projections show increases in average temperatures and reduced snowpack where Palo Alto sources much
of its water—which could impact Palo Alto’s hydroelectric power and thus its carbon neutral electricity strategy.
Given current climatic projections, long-term increases in water supplies from San Francisco Public Utilities
Commission (SFPUC) appear highly unlikely. It would be prudent to reduce water consumption while exploring
ways to increase the availability and use of recycled water.
4.1 Goal: Reduce consumption of water
CPAU water demand management measures (DMMs) have supported customers in reducing water use 27%
between 2000 and 2010. CPAU’s drought response programs have enabled the City to reduce water use by 24% in
2015 compared with 2013 levels, far ahead of the State’s mandated reduction requirements. Long-term water
reduction strategies should focus not only on implementing these procedures during times of drought, but rather
using the incentives and policy drivers listed in the water management plan to drive sustained water consumption
reduction.
4.2 Goal: Utilize the right water supply for the right use
4.3 Goal: Ensure sufficient water quantity and quality
4.4 Goal: Protect the Bay, other surface waters, and
groundwater
4.5 Goal: Lead in sustainable water management
(NOTE: The strategies that follow apply to multiple goals.)
16 The California Department of Water Resources (http://www.sei-international.org/news-and-media/3252), the
Association of California Water Agencies (http://www.acwa.com/events/2016-executive-briefing-defining-new-
normal) and others are examining the potential impacts of Climate Change on Hydrologic Trends and Water
Management.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 33 of 52
4.5.1 Strategy: Verify ability to meet City’s long term water needs
4.5.2 Strategy: Encourage water conservation for existing infrastructure
4.5.3 Strategy: Improve Palo Alto’s recycled water quality
4.5.4 Strategy: Investigate all potential uses of recycled water
4.5.5 Strategy: Investigate ways to reuse non-traditional water sources
4.5.6 Strategy: Minimize water use in new buildings, renovations, and
landscaping
4.5.7 Strategy: Continue to improve quality of storm water
4.5.8 Strategy: Capture and infiltrate storm water; maintain hydrologic cycle
4.5.9 Strategy: Convert the RWQCP to a beneficial resource recovery facility
4.5.10 Strategy: Support both regional and building-level net-zero water efforts
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 34 of 52
5. MUNICIPAL
OPERATIONS –
LEADING THE
WAY
The City of Palo Alto has long demonstrated its commitment to sustainability and reductions of
greenhouse gas emissions through its municipal operations. Palo Alto city government’s
environmental footprint is small—3.1% of citywide electricity use, 2.9% of natural gas use and 5.3%
of water use in FY 2014. But resource efficiency, low carbon and other sustainability initiatives can
save money, improve operating performance, reduce emissions, and provide leadership for the
community. And the City’s important role in leading by example has a powerful impact, both by
providing a governing framework that supports sustainability throughout the community and
inspiring within our community and to neighboring communities. The city government’s
commitment: “We walk the talk, and we go first.”
5.1 Goal: Create energy and water efficient City buildings
The City spends approximately $6 million annually on utilities; “typical” 10-20% potential efficiency savings could
result in more than $600,000 saved per year. The City requires LEED certification for all new City buildings over
10,000 square feet, and assessment of “green building” potential for substantial renovations and additions over
5,000 square feet. These requirements may not have captured all opportunities, and advances in green building
design and technology continually open new ones.
5.1.1 Strategy: Use existing Capital Improvement Program (CIP) projects as
mechanism to implement feasible electrification, efficiency and advanced
technology opportunities
5.1.2 Strategy: Use city buildings as demonstration projects for advanced
building Technologies
5.1.3 Strategy: Strengthen the current energy efficiency and sustainability
requirements (including LEED requirements) for City building projects
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 35 of 52
5.1.4 Strategy: Develop energy efficiency and electrification plans for City
buildings
5.1.5 Strategy: Track and report energy use by City buildings
5.2 Goal: Minimize emissions and maximize efficiency of the
City fleet
5.2.1 Strategy: Continue to electrify City fleet vehicles wherever possible
5.2.2 Strategy: Explore new models for City fleet vehicle operations
•
5.3 Goal: “Default to Green” Procurement for Products and
Services
In 2007, the City authorized the implementation of a green purchasing program, and subsequently adopted a
Green Purchasing Policy (GPP) in 2008, which supports existing environmental policies and Council direction to
reduce GHG, pesticides and mercury, and achieve Zero Waste and pollution prevention goals. In 2015, the City
Manager established a “default to green” strategy that makes the greener product the norm rather than the
exception. Staff will always have the option to purchase alternative products, wherever cost or performance
requirements make the green product inappropriate, but by making the greener purchase easier, and supported
by tools that assist staff in choosing the best option, the City hopes to embed greener purchasing into City
processes. (This has been accomplished for paper and toner purchases, and is underway for fleet purchases.)
[A 2014 OSS analysis showed that the Scope 3 GHG impacts of City purchases would add an estimated 25% to City
government emissions.]
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 36 of 52
5.3.1 Strategy: Establish Green Purchasing criteria in all priority categories
5.3.2 Strategy: Fund Green Purchasing programs, products and services
5.3.3 Strategy: Embed Green Purchasing into City procedures
5.3.4 Strategy: Educate staff about Green Purchasing policies
5.3.5 Strategy: Track and report progress
5.4 Goal: Embed sustainability in City management systems,
processes and operations
Wherever possible, the City will embed sustainability criteria in City management systems processes and
Operations, to ensure that the programs identified in this Plan are addressed early, as part of standard operating
procedure rather than special “sustainability add-ons.”
5.4.1 Strategy: Infuse sustainability throughout City operations
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 37 of 52
6. ADAPTING TO
CLIMATE CHANGE
& SEA LEVEL RISE
The first imperative of climate change planning is mitigation,
the reduction in the emissions of greenhouse gases so that
the impacts can be kept as small as possible. However, even if
all carbon emissions were stopped today, some of these effects are likely to continue for decades into the future.
Palo Alto’s greatest climate change risks are a product of the City’s bayside setting, the inherent sensitivities of its
Mediterranean climate, and its dependence on imported water from the distant Sierra Nevada mountains as its
primary water and hydro- electric supply.
Sea-level rise is expected to affect low-lying areas of Palo Alto surrounding the San Francisco Bay with more
frequent and severe flooding. The State of California has adopted guidance and planning sea level rise projections
for the San Francisco Bay region from the National Research Council (NRC, 201217) of projected 11 inches of sea
level rise by 2050 (with a range of 5 to 24 inches) and 36 inches by 2100 (with a range of 17 to 66 inches by 2100.18
Figure 16 and Figure 17 provide an overview (leveraging Silicon Valley 2.0, a regional planning effort to minimize
the anticipated impacts of climate change) of community assets identified at risk of sea level rise/flooding and fire
risk. (See detailed assessment of risks and potential responses in Appendix F.) City staff have several related work
streams underway.
17 National Research Council (NRC), 2012. Sea-Level Rise for the Coasts of California, Oregon, and Washington: Past,
Present, and Future. http://www.nap.edu/catalog.php?record_id=13389
18 California, via the Ocean Protection Council, (OPC, 201318), has adopted the San Francisco Bay region sea level
rise projections from the National Research Council (NRC, 201218), which includes an allowance for vertical land
motion.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 38 of 52
Figure 14. Palo Alto Community Assets at Risk from Sea Level Rise and Associated Flooding
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 39 of 52
Guiding Principles for Sea Level Rise Response
Recognizing the most immediate risks related to sea level, particularly for critical facilities along the San
Francisco Bay Shoreline, Palo Alto has identified six guiding principles:
(1) For city of Palo Alto capital projects, use sea level rise assumptions consistent with the State of
California adopted guidance, with a minimum of 55 inches based on Bay Conservation Development
Corporation (BCDC) numbers.
(2) Continue to monitor latest climate change and sea level rise science and adapt as needed if sea level
rise occurs at a more rapid pace and/or higher levels than projected
(3) Ensure engineering solutions are adaptable to changing climate predictions
(4) Consider tools to protect, adapt and retreat as appropriate and cost-effective
(5) For areas that are to be protected, consider additional tools in case severity and speed of sea level rise
increase, such as designing structure that can get wet and locating sensitive equipment higher in a
building
(6) Continue to collaborate with regional planning efforts on studies of climate impacts and strategies to
respond to sea level rise
Figure 15. Change in Fire Exposure Risk, Showing Community Asset Locations
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 40 of 52
6.1 Goal: Plan for coming changes in our climate and
environment
6.1.1 Strategy: Ensure appropriate water and energy forecasting and Supply
6.2 Goal: Protect the City from climate change induced
hazards
6.2.1 Strategy: Build resiliency into City planning and CIP projects
6.2.2 Strategy: Protect existing public & private infrastructure and critical
services
6.2.3 Strategy: Optimize and preserve ecosystem services as protections from
the sea
6.2.4 Strategy: Implement County Hazard Mitigation Plan
6.2.5 Strategy: Secure funding for coastal protection projects
6.3 Goal: Adapt to current and projected environmental
conditions
6.3.1 Strategy: Strengthen City building requirements and buildings
6.3.2 Strategy: Adopt policies to support adaptation
6.3.3 Strategy: Consider and plan for managed retreat where needed
6.4 Goal: Empower the local community and foster regional
collaboration
6.4.1 Strategy: Participate in regional alliances
6.4.2 Strategy: Improve governance of SLR issues
6.4.3 Strategy: Strengthen communications with local corporations
6.4.4 Strategy: Strengthen neighborhood connections
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 41 of 52
6.4.5 Strategy: Encourage residents to participate in the City’s Storm Water
Incentive Programs
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 42 of 52
7. NATURAL
ENVIRONMENT
Sustainability is not only about mitigation and resiliency to
change, but also about regeneration and identifying
opportunities for renewal, restoration and growth of our
natural resources and environment. Green infrastructure
management provides one of the rare opportunities to enhance ecosystem positives such as sequestration of
carbon, recharge of groundwater reserves, local food, walk-ability and bike-ability, and improved human health
rather than solely reduction of negative impacts such as pollution and waste. Sequestering and storing carbon in
trees, vegetation and soil will be an increasing part of climate solutions. The urban forest also shades, cools, slows
water evaporation from soils and has many contributions to other non-carbon aspects of sustainability which are
addressed in the S/CAP framework below.
Palo Alto will continue to build the natural resources, “common wealth” and biocapacity that sustains it: soils,
vegetation, tree canopy, biodiversity, water and many other critical components. Green infrastructure refers to
natural areas and systems to provide habitat, flood protection, storm water management, cleaner air and cleaner
water.
7.1 Goal: Renew, restore and enhance resilience of our
natural environment
7.1.1 Strategy: Adapt canopy, parklands, biodiversity, soil health to changing
climatic regimes
7.1.2 Strategy: Value and enhance the common wealth for future generations.
7.1.3 Strategy: Deploy Green Infrastructure.
7.2 Goal: Align S/CAP planning for the Natural Environment
with other City Plans
7.2.1 Strategy: Reference, Summarize and Interpret Relevant Plans
7.3 Goal: Maximize Carbon Sequestration and Storage in the
Natural Environment
7.3.1 Strategy: Manage Soil, Plants, and Trees to Maximize Carbon Benefits and
Other Ecosystem Services
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 43 of 52
8. PALO ALTO’S
UTILITY OF THE
FUTURE
The utility industry is changing. Rapidly dropping costs of
renewable and distributed power sources, energy storage, electric vehicles and energy-related
telecommunications are combining to challenge the traditional utility framework and business. CPAU is tracking
these trends, has begun piloting residential “smart meters” in a few hundred locations and begun assessing the
load and storage impacts of electric vehicles on the grid. These trends intersect sustainability and climate action
concerns, and raise both significant challenges and opportunities for CPAU.
CPAU will explore and evaluate the “Utility of the Future” concept—including potentially moving from a
centralized utility provisioning model to a more agile one of greater embracing distributed energy generation and
storage, an increased focus on energy services in addition to energy generation and distribution.
8.1 Goal: Advance smart grid strategies
Smart grid strategies connect to Palo Alto’s existing, smart city and open data strategies, and offer the promise of
more responsive and efficient energy systems, and more connected and satisfied customers.,
8.1.1 Strategy: Deploy Smart Grid as key part of “smart and connected city”
8.1.2 Strategy: Evaluate and advance appropriate distributed generation and
storage strategies
8.2 Goal: Evaluate and adapt the CPAU business model
The utility industry faces a potentially disruptive future—driven by changing technology, economics and customer
expectations, as well as policy changes—that could include the challenge of “grid defection” as customers become
their own providers, and of new regulatory models and new competitors that shift revenues from utilities to other
participants in the energy system. Few utilities have begun to consider how to adapt to the creative destruction in
by the proliferation of distributed generation and energy efficiency; many are actively resisting the transition.
CPAU, small and locally controlled, has the capabilities to rapidly evolve the business models these trends are
demanding.
8.2.1 Strategy: Consider long-term CPAU strategy in light of rapidly changing
technology
8.2.2 Strategy: Leverage the resiliency and potential cost benefits of distributed
energy resources (e.g., solar, storage, microgrids)
8.3 Goal: Continue to advance carbon neutrality
CPAU will continue to play a central role in Palo Alto’s carbon neutrality trajectory.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 44 of 52
8.3.1 Strategy: Continue to support electrification programs and requirements,
including restructuring rates and upgrading grid, as warranted
8.3.2 Strategy: Develop hydroelectric power contingency plans
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 45 of 52
9. COMMUNITY
BEHAVIOR,
CULTURE &
INNOVATION
Ultimately the way individuals and businesses act dictates our consumption patterns and thus our impact on
natural resources. To truly address the challenges of climate change and sustainability, individual behavior will
have to continue to change. In fact, the GHG impact of individual purchasing decisions—not reflected in Palo Alto’s
GHG inventory, above—is significant. (See Figure 16, below.) Achieving that change will require broad community
engagement, participation, guidance— and individual initiative. To support that, the City will actively inform &
convene stakeholders, support individual & collaborative action, and disclose and report impacts of both City and
community-wide initiatives and impacts.
9.1 Goal: Provide a platform for community change in culture,
behavior and innovation
9.1.1 Strategy: Shift cultural norms to encourage supportive change in behavior,
lifestyle, purchasing and investment
9.1.2 Strategy: Facilitate personal and neighborhood action
Figure 17: Palo Alto Per Capita GHG emissions, including "Scope 3" Impact of Purchases
•
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 46 of 52
9.1.3 Strategy: Develop Smart City and Power of Open Data
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 47 of 52
10. FINANCING,
FUNDING AND
INVESTMENTS
The total financial impact of the goals and strategies identified
in this plan is estimated to result in a net present value of
$400 million generated by estimated City investments of $10 million combined with investments across the Palo
Alto economy of approximately $760 million over the next 14 years. (These are best estimates in the face of rapidly
evolving technologies and rapidly improving price/performance ratios in energy, mobility and other sectors; they
should be revised regularly.)
This return on investment may seem surprising that reducing GHG emissions are estimated to provide a net
positive economic benefit, since most people have long thought that environmental quality costs money. But
efficiency has long delivered good return on investment, and renewable energy is becoming increasingly
competitive compared to fossil fuels. This makes carbon neutrality a good investment seen in the light of
alternative costs if Palo Alto were to continue to source its energy from fossil fuels. Additionally, the levers and
strategies identified in this plan also contribute to improving the health and quality of life for Palo Alto residents
and businesses by reducing congestion, noise and local pollution.
Financing these pathways
Staff has identified a variety of potential sources of funds to finance the S/CAP; all of these sources (including
private financial vehicles) need a more complete assessment of applicable legal and regulatory requirements and
the risks and obligations associated with the various approaches.19 These include operating savings, parking
feebates, utility rates, revolving loan funds, local offsets, carbon tax or fee, voluntary contributions, green bonds,
transfer taxes, public/private partnerships and private financial vehicles.20 There is evidence that market demand
exceeds supply for well-constructed sustainability and climate related investment opportunities; as a result some
initiatives discussed here may be financeable through private investors.
Capital formation
People—and companies—sometimes resist environmental improvements for fear they are too expensive, or say
we’ll do as much as we can afford. But as the late Ray Anderson, founder and CEO of Interface, would say, “If you
think sustainability is expensive, you’re doing it wrong.”
Analysis shows that sustainability can be a good investment. But it is an investment—and like any other can be
structured in many ways
Many funding options are available and new forms are continually emerging. In most cases, innovation comes from
combining instruments in creative ways to achieve specific goals rather than creating entirely new mechanisms.
The “best” choice of funding vehicle for a particular entity is one that compliments the current political and
cultural context of a region by allocating costs and benefits equitably. Figure 18 summarizes key financing options
and their estimated scale.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 48 of 52
Figure 198: Potential Financing Sources and Amounts
STRATEGIES DESCRIPTION POTENTIAL
FUNDS
COMMENTS
Utility Costs Operating Savings
Allocate 50% of cost savings from retrofit of City buildings
$0.6m/yr Current spend ~$6m/year; estimated 10% savings
Parking Feebates Phase out free parking; apply revenues to commute alternatives $10-20m/yr (Modeled on the Stanford engine)
Utility Reserve Apply 10% of Utility Reserve to finance low-carbon initiatives
$5m/yr
Revolving Loan Fund
Establish bond-funded low-interest revolving loan fund for on-bill
financing of efficiency projects
TBD
Green Bonds Issue green bonds to finance green infrastructure and low carbon initiatives
TBD Beneficial interest rates since demand exceeds supply
Local Offsets Switch GreenGas to opt-out; use portion of funds to finance qualified local projects (5% first year)
$1.6m/year
Carbon Tax Explore and pilot local carbon tax or
fee
$5-15m/yr See Boulder, for example.
Would likely require ballot measure.
Total $22.2-32.2m/yr
10.1 Goal: Utilize diverse financial pathways to drive S/CAP
implementation
• Evaluate the economic and legal feasibility of the financing measures identified in Figures 18.
• Utilize the general fund to incentivize investments to promote appliance switching, which may not be
possible for the Enterprise funds to finance due to legal restrictions.
• Establish internal carbon pricing for all City departments and financial activities.
• To the extent feasible, include carbon pricing into the gas rates to fund efficiencies and fuel switching.
• Identify a neighborhood or commercial district as a special district to carry out innovative pilot projects
around GHG reduction, electric transportation development, or other approaches.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 49 of 52
11. IMPLEMENTATION: TURNING VISION
INTO ACTION
Achieving the emissions reductions detailed in this plan requires that the strategies are implemented in a timely,
coordinated and sustained way. Partial or poorly coordinated implementation will reduce the emissions reduction
potential of the S/CAP.
Monitoring and Tracking Progress
The Office of Sustainability will be responsible for monitoring and reporting on the progress of the S/CAP on the
following schedule:
• Community greenhouse gas inventory: Annually.
• S/CAP Strategy Indicators: Annually
Below, we summarize the key performance indicators associated with each Strategy:
Table 1. Summary of S/CAP Strategy Indicators for Monitoring Progress21
Levers Goals Strategy 2030 Performance Target 2030 GHG
Emissions
Reduction
(MTCO2e)
Re
t
h
i
n
k
i
n
g
M
o
b
i
l
i
t
y
Expand non-
auto mobility
options
T-FAC-1. Expand bicycle
infrastructure
Increase bike boulevard miles to 26
miles
Increase in bike mode share to 30%
8,400
T-FAC-2. Expand transit options Increase transit ridership by 60%
19,200
T-FAC-3. Grow ridesharing
services Increase in rideshare mode
6,400
Create right
financial
incentives
T-INC-1. Provide universal
transit passes
75% of residents and employees have
universal transit passes
7,600
T-INC-2. Implement parking
pricing 50% of sites have parking pricing
18,400
Implement
land use
approaches
T-LU-1. Increase zero-impact
housing Target 2.95 jobs-housing ratio
2,900
Reduce carbon
intensity of
vehicles
T-EV-1. Electrify Palo Alto-based
vehicles
90% of vehicles based in Palo Alto are
zero emission
25,200
T-EV-2. Electrify inbound
vehicles
50% of inbound (not based in Palo
Alto) vehicles are zero emission
29,800
El
e
c
t
r
i
f
yi
n
g
ou
r
Reduce use in
existing
businesses
NG-COMM-1. Electrify water
heating in businesses
85% of commercial water heating is
electric
21,200
NG-COMM-2. Electrify space 85% of commercial space heating is
21 The figures in this table are estimates based on staff and consultant analyses of the estimated GHG reductions
from each strategy. These estimates are built on documented assumptions, and are subject to many factors that
could change over the 2030 horizon.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 50 of 52
heating in businesses electric 15,900
NG-COOK-1. Electrify
commercial cooking 50% of commercial cooking is electric
11,300
Reduce use in
existing homes
NG-RES-1. Electrify residential
water heating
Close to 100% of water heaters are
electric
13,600
NG-RES-2. Electrify residential
space heating
70% of residential space heating is
electric
23,300
Reduce use in
new buildings
NG-GAS-1. Encourage all-
electric new buildings
New buildings are zero net energy
ahead of state targets
11,900
Ze
r
o
Wa
s
t
e
Enhance
programs and
infrastructure
SW-1. Achieve zero waste
Achieve 95% diversion rate
9,500
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 51 of 52
CONCLUSION
Climate change is a global problem and only through local solutions designed to meet the needs of our community
can we mitigate and adapt to its impacts and protect the environment. While the challenge of climate change is
unprecedented, local-level solutions can reduce emissions, increase efficiency, promote economic development,
and improve quality of life for residents.
Together, we can continue to foster a vibrant economy, increase our resiliency and support Palo Alto’s vision for a
livable and sustainable community for generations to come. The City of Palo Alto has taken a significant step
toward a more sustainable future with this climate action plan. This Plan has identified areas and opportunities to
reduce GHG emissions within the community and City operations that along with statewide efforts can achieve our
environmental goals.
While an important first step, this plan will remain a living document, to be updated as technology and policies
progress, to support the City’s efforts to manage GHG emissions for a sustainable future for all.
City of Palo Alto: Sustainability and Climate Action Plan 2016 Framework Nov 2016 Page 52 of 52
GLOSSARY
BAU: Business as Usual. Measures, initiatives or impacts that do not depend on new City of Palo Alto action
BAU 1: BAU resulting from demographic projections, external (State and Federal) policy choices. Based on
CompPlan analysis, modified by S/CAP consultants to distinguish certain elements. (See BAU2)
BAU 2: BAU resulting from existing (enacted and/or in progress)
Palo Alto: The entire Palo Alto community, including COPA, residents and businesses
CNE: Carbon Neutral Electricity
CPAU: City of Palo Alto Utilities
COPA or The City: City of Palo Alto municipal government, including City of Palo Alto Utilities
EV: Electric Vehicle
GHG: Greenhouse gas emissions
MaaS : Mobility as a Service
PV: Photovoltaic System
SOV: Single Occupant Vehicles
S/CAP: Sustainability and Climate Action Plan
TNCs: Transportation Network Companies
VMT: Vehicle Miles Traveled
How Will the Comprehensive Plan Update & the
Sustainability & Climate Action Plan Work Together?
Palo Alto’s Comprehensive Plan
Update and the Sustainability and Climate Action Plan (S/CAP) are be-
ing prepared in parallel and will both
address issues related to sustainability,
including reducing greenhouse gas
(GHG) emissions and single occu-
pant vehicle trips, conserving energy,
water, and other natural resources,
and adapting to expected changes in
climate and resulting impacts such
as sea level rise, drought, increased
flooding and fire risk, etc. The fol-
lowing points describe how these two
concurrent planning efforts interact
with each other.
The Comprehensive Plan Update will
embrace principles of sustainability
via new goals, policies, and imple-
mentation programs, particularly in
the Transportation, Land Use & Com-
munity Design, Natural Environment,
and Safety elements of the updated
plan. A subcommittee of the Citizens
Advisory Committee has been formed
to work across elements on this issue.
Also, the use of icons or a special sec-
tion in the final plan can allow readers
to find goals, policies, and programs
related to sustainability and climate
change adaption wherever they occur
in the document.
The Comprehensive Plan Update will
describe the intent and scope of the
Sustainability and Climate Action Plan and explicitly incorporate the
plan by reference, similar to how
other important community plans
will be referenced (e.g. the Baylands
Master Plan; the Local Hazard Mitiga-
tion Plan; the Parks, Trails and Open
Space Master Plan; the Urban Forest
Master Plan, etc.).
As a more focused plan, the Sus-tainability and Climate Action Plan
will be much more specific than the
Comprehensive Plan Update when
it comes to strategies for reducing
greenhouse gas (GHG) emissions and
for addressing other sustainability-re-
lated topics. The Sustainability and
Climate Action Plan will also look
out farther than the Comprehensive
Plan Update horizon year of 2030.
Both the Comprehensive Plan Up-
date and the Sustainability and Cli-mate Action Plan will require review
pursuant to the California Environ-
mental Quality Act (CEQA) and the
Draft Environmental Impact Report
(EIR) that is being prepared for the
Comprehensive Plan Update will con-
tain a conservative (i.e. probably high)
forecast of community-wide GHG
emissions in the year 2030. The Sus-
tainability and Climate Action Plan
will be more aspirational in assuming
aggressive emission reductions.
Finalization, adoption and imple-
mentation of the Sustainability and
Climate Action Plan will be included
as a mitigation measure in the Com-
prehensive Plan Update Draft EIR to
ensure that the City meets or exceeds
the State’s targets for GHG emission
reductions in 2030 and 2050.
Palo Alto’s Comprehen-
sive Plan Update and
the Sustainability and
Climate Action Plan
are being prepared in
parallel and will both
address issues related to
sustainability.
Interested in helping craft solutions to
the critical issues facing us now and
into the future? Join us at the Sustain-
ability and Climate Action Summit:www.cityofpaloalto.org/scapreg
Attachment C: Principles and Criteria
Guiding Principles
The Vision Statement for the 1998 Comprehensive Plan Governance Element declares that:
“Palo Alto will maintain a positive civic image and be a leader in the regional, state, and
national policy discussions affecting the community. The City will work with neighboring
communities to address common concerns and pursue common interests. The public
will be actively and effectively involved in City affairs, both at the Citywide and
neighborhood levels.”1
S/CAP builds on that vision with these guiding principles as a basis for effective and sustainable
decision-making:
Consider “sustainability” in its broadest dimensions, including quality of life, the natural
environment and resilience, not just climate change and greenhouse gas emissions
reductions.
Address the sustainability issues most important to the community and select most cost-
effective programs and policies—recognizing that this will entail moral and political, as
well as economic, decision factors.
Seek to improve quality of life as well as environmental quality, economic health and social
equity.
Foster a prosperous, robust and inclusive economy.
Build resilience—both physical and cultural—throughout the community.
Include diverse perspectives from all community stakeholders, residents, and businesses.
Recognize Palo Alto’s role as a leader and linkages with regional, national and global
community.
Design Principles
In both evaluating this S/CAP, and in developing and evaluating future programs guided by it,
Palo Alto is guided by these design principles:
Focus on what’s feasible—recognizing that technology and costs are shifting rapidly.
Prioritize actions that are in the City’s control – recognizing that we can urge others to join
us, but leading by example is most effective
Be specific about the actions and costs to achieve near-term goals, while accepting that
longer-term goals can be more aspirational
Use ambient resources: Maximize the efficient capture and use of the energy and water
that fall on Palo Alto.
1 http://www.paloaltocompplan.org/plan-contents/governance-element/
Full cost accounting: Use total (life cycle) cost of ownership and consideration of
externalities to guide financial decisions, while focusing on emission reductions that
achievable at a point in time (i.e. not on life cycle emissions).
Align incentives: Ensure that subsidies, if any, and other investment of public resources
encourage what we want and discourage what we don’t want.
Flexible platforms: Take practical near term steps that expand rather than restrict capacity
for future actions and pivots.
Decision Criteria
In selecting specific programs and policies to pursue, and in allocating public resources to
support them, Palo Alto will be guided by these decision criteria:
Greenhouse gas impact
Quality of life impact
Mitigation cost
Return on investment (ROI)
Ecosystem health
Resilience
Impact on future generations