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HomeMy WebLinkAboutStaff Report 3662 City of Palo Alto (ID # 3662) City Council Informational Report Report Type: Study Session Meeting Date: 4/15/2013 April 15, 2013 Page 1 of 11 (ID # 3662) Council Priority: Environmental Sustainability Title: Summary of Sustainable Activities Subject: Update on the Progress in Implementing the Climate Protection Plan - Earth Day Report From: City Manager Lead Department: Utilities Recommendation This is an informational report and requires no Council action. Executive Summary Since adoption of Climate Protection Plan (CPP) by the City Council in December 2007, and the adoption of updated goals in 2010, the City of Palo Alto’s municipal operations (City) and the Palo Alto Community (Community) have made much progress in reducing their carbon footprint and adopt sustainable practices. The 2012 greenhouse gas (GHG) emissions from City operations are estimated to be 53% below 2005 levels, exceeding the Council’s goal to reduce these emissions by 20% by 2012. The activities that led to these reduced emission levels also resulted in reduction of the cost to the City for electricity and natural gas utility services and for vehicular fuel by approximately $500,000 a year in 2012. GHG emissions in 2012 by the City and Community combined are estimated to be down 22% below 2005 levels, exceeding the Council goal of 15% reduction below 2005 levels by 2020. Staff’s preliminary estimate is that the Community’s GHG emissions in 2012 were 28% lower than 1990 emission levels based on estimated community mobile fuel use and consumption of electricity and natural gas. If these estimates are confirmed, the Community has made a head start towards the state’s goal of reducing 2050 emissions by 80% below 1990 levels. The GHG reductions since 2005 were largely achieved by the greening of electricity supplies, aggressive electricity and natural gas efficiency programs, conservation efforts, utilization of landfill gas at the water quality control plant, and energy efficiency projects at the plant. An initial assessment of transportation-related emissions suggests that GHG emissions from this sector have also declined. The City’s plan for carbon neutral electric supply in 2013 will April 15, 2013 Page 2 of 11 (ID # 3662) eliminate the 75,000 Metric Tons (MT) of GHG emissions associated with this source in 2012, and will reduce the Community’s 2013 emissions by 37% below 1990 levels. In the coming year, with input from Council, staff expects to develop a new CPP in coordination with the planned update to the City’s Comprehensive Plan. If the community chooses to further reduce emissions and allocate commensurate resources towards this effort, Palo Alto could become a model city as California embarks on the journey to meet the state’s aspirational goal of 80% reduction (from 1990 levels) by 2050. Aspects of adaptation to climate change will also be considered in this assessment Background Climate change has become perhaps the most important threat facing the global environment and economy. In California, the effects of climate change are likely to reduce the availability of hydroelectric generation, impact the availability of our water supplies, increase the incidence of forest fires and extreme weather events, and lead to a rise in sea level, which would impact Palo Alto's shoreline and flood prone areas. The City took a leadership role in 2007 as one of the first U.S. cities to develop a Climate Protection Plan (CPP), also referred to as the Climate Action Plan by other cities. The CPP describes measures that could be taken to reduce the City's GHG emissions and set GHG reduction goals. The City’s CPP and GHG emissions reduction goals are described in detail in Attachment A. In brief, the GHG emission reduction goals are:  By 2012, the City will reduce GHG emissions by 20% below 2005 levels.  By 2012, the City and Community will reduce emissions by 5% below 2005 levels.  By 2020, the City and Community will reduce emissions by 15% below 2005 levels. Discussion Greenhouse Gas Emission Measurement and Reporting Protocols To quantify and report on GHG emissions related to City operations, the City has followed the Local Government Operations Protocol (LGOP), which is widely recognized by the industry and regulators. These reports were voluntarily filed with California Climate Action Registry (CCAR) since 2005 and with The Climate Registry (TCR) since 2010. In the beginning, the reports were verified by independent auditors. In recent years, due to the high cost of the audits, the City has filed the reports but has not commissioned independent verification audits. However, with the approval of the Carbon Neutral Plan for the electric portfolio, the City expects to reinstate the independent verification function to provide independent review of City’s TCR filings. The City also separately voluntarily reports to the US EPA on the management of SF61, a highly 1 SF6 is a highly potent greenhouse gas used in electrical switchgear as an insulation medium in the past, but at present being gradually phased out. In addition to voluntary TCR reporting, the City also has a number of mandatory GHG reporting under California Air Resources Board (CARB) regulations to implement state law AB32 for the electric utility, gas utility and WQCP operations. Several of these reports also are subject to mandatory independent verification audits. April 15, 2013 Page 3 of 11 (ID # 3662) potent GHG used in electrical equipment by the electric utility. City emissions shown in this report were based on these filings. In addition to ‘corporate entity’2 level GHG emissions reporting for City operations to TCR, ‘ICLEI protocols’3 provide for total community level measurement and reporting of GHG emissions. The City and Community level emissions provided in this report conform to this protocol. GHG Emissions from City Operations As illustrated in Figure 1 below, emissions from City operations in 2012 have been reduced by 53% since 2005, exceeding the 20% reduction goal. The reductions are primarily from improvements at the Water Quality Control Plant (WQCP), efficiency improvement undertaken at many facilities including City Hall building, participation in recycling and other waste management programs, greater use of renewable electric supply, and reduced utilization of the back-up electrical generator at the Municipal Service Center. Descriptions of these improvements are provided in Attachment B. The annual operational cost saving from these improvements total approximately $500,000 per year per year, with $350,000 of savings attributable to improvements at the water quality control plant, $50,000 related to lower utility bills for City facilities, and more than $100,000 in reduced fuel consumption by the City fleet. 2 TCR requires corporate level filing of the GHG emission inventory (in this case the City municipal corporation operations) to report all emissions that are within the control of that legal entity. For Palo Alto this excludes emissions such as those related to community transportation. As an electric and gas utility, the City does have some control over emissions related to these two energy sources, and, therefore, must count them in the inventory. 3The International Council for Local Environmental Initiatives (ICELI) protocol is a premier GHG reporting standard for local governments and communities. April 15, 2013 Page 4 of 11 (ID # 3662) Figure 1: City Operations GHG Emissions: 2005 vs. 2012 (Total Emissions Reduced from 42,000 MT to 20,000 MT4, a 53% reduction5) GHG Emissions from Community and City Municipal Operations Figure 2 below summarizes the combined City and Community emissions in three categories6. 4 MT refers to metric tons of carbon dioxide equivalent (CO2e) emissions. 5 The emissions reduction excluding adjustments to account for variations in hydro-electricity production and PaloAltoGreen purchases is 31%. This is primarily because 2012 was a relatively dry year which resulted in hydro electric supply providing 42% of electric needs, instead of the 52% supply Palo Alto would have received in an average hydro year or about 62% of supply in a wet year. Staff has revised its baseline calculations for City operations emissions to be in line with the current calculation methodology known as the Local Government Operations protocol (LGOP). The LGOP was developed by California Air Resources Board (CARB) staff in partnership with the Climate Action Reserve (CAR), The Climate Registry (TCR), and Local Governments for Sustainability. 6 Scope 1 is defined to be direct emissions that the City can control and as a natural gas utility it primarily includes natural gas related communitywide GHG emissions. Scope 2 is communitywide emissions related to electricity usage. Scope 3 is emissions not in scope 1 or scope 2. (World Resource Institute protocol adopted by TCR). April 15, 2013 Page 5 of 11 (ID # 3662) Figure 2: Community and City Operations GHG Emissions: 2005 vs. 2012 (Total Emissions7 reduced from 798,000 MT to 619,000 MT, a 22% reduction) The use of natural gas has decreased slightly, primarily as a result of efficiency improvements and a large commercial natural gas customer leaving town. The electricity emissions reduction accounts for the majority of the reduction and is largely due to greater amount of renewable energy supply. The Community’s purchase of PaloAltoGreen renewable energy certificates (RECs) was factored into the Community’s total emissions8. Attachment C provides greater detail. An assessment of transportation-related emissions was conducted by consultants earlier this year, and preliminary results suggest a 10% reduction vehicle related emissions despite an increase in ‘service population’ in Palo Alto. This decrease was driven by a reduction of per capita miles travelled and improved vehicular fuel efficiency. A detailed description of the 7 The total emissions estimate is adjusted for hydroelectric production variations caused by weather and PaloAltoGreen energy purchases. Staff has revised its baseline calculations in line with the LGOP protocols. 8 A reduction of 879 lbs of CO2e per REC purchased is used to estimate the GHG emission reductions for PaloAltoGreen program. This factor is the US EPA estimate for emissions from natural gas fired electric generation in 2005. April 15, 2013 Page 6 of 11 (ID # 3662) study results and assumptions is provided in Attachment F. Table 1 below summarizes the results and shows that emissions were reduced by 13.6%, from 371,870 MT in 2005 to 321,200 MT in 2012. It also shows the corresponding emission estimates for year 1990, the base year utilized by the state for emission reduction goals under state law AB32. Table 1: Estimates of Vehicle Emissions within Palo Alto City Limits Source: Fehr and Peer Report of 03/19/2013 Assessment of GHG Emission Trends Since 1990 California’s Global Warming Solutions Act (AB32) of 2006 calls for statewide GHG emission reduction and establishes a goal of reducing emissions to 1990 emission levels by 2020. Staff’s preliminary estimate is that the Community’s GHG emissions in 2012 are 28% below 1990 emission levels based on estimated mobile fuel use and consumption of electricity and natural gas as outlined in Table 2 below. April 15, 2013 Page 7 of 11 (ID # 3662) Table 2: Community and City Greenhouse Gas Emission Estimates for 1990, 2005 and 2012 1990 2005 2012 1990 2005 Natural Gas 194 166 160 -18%-4% Electricity 186 160 75 -60%-53% Mobile Combustion*382 372 335 -12%-10% Other**100***100 49 -- Total 862 798 619 -28%-22% Greenhouse Gas Emissions (000’s of MT) (City Operqations and Community) % Change 2012 vs.Emissions Drivers * Consultant estimates based on population, employment, vehicle miles travelled and vehicular emission profiles ** Includes landfill, refuse and water WQCP emissions *** This estimate for 1990 is held at the same level as that of 2005, to be revised at a later time In addition to the emission reduction goals, the City’s CPP also had other goals. These goals are tabulated below along with the progress made in achieving those goals. CPP Goals Update on Progress Incorporate carbon reduction into the City's Comprehensive Plan goals to ensure continuity with other City priorities The new CPP is expected to be developed in coordination with the update to the City’s Comprehensive Plan. This coordinated development process will be ready for Council consideration later in 2013 Explore and evaluate a policy whereby all of the Palo Alto Utilities would become climate neutral and enable customers to choose climate neutrality through various voluntary mechanisms. The City developed PaloAltoGreen volunteer program, and the program became the nation's top-ranked voluntary renewable energy program. In March 2013 Council approved the Carbon Neutral Plan for electricity supply for all customers starting in 2013. Maintain and report GHG inventories on a regular basis Staff has compiled and reported on annual GHG emissions inventory of City operations to national registries (CCAR, TCR) since 2005. Since 2010, Utilities has also been reporting to CARB. Promote participation by Palo Alto businesses in GHG inventory efforts A number of large companies in the City quantify their carbon footprint and the City assists them in providing utility related emission coefficients. Staff will continue to be active in Sustainable Silicon Valley, Joint Venture Silicon Valley, Santa Clara County Sustainable Office, California Air Resource Board (CARB), GreenCitiesCALIFORIA, and other related regional and state forum. April 15, 2013 Page 8 of 11 (ID # 3662) A more detailed list of accomplishments by the City is provided in Attachment D. It summarizes many of the City’s sustainability efforts, and includes the following sections. I. Utilities Operations II. Sustainable Purchasing, IT and Administrative Practices III. City Fleet Operations IV. City Facilities Operations and Capital Projects; Public Works Projects V. Green Building VI. Zero Waste and Landfill Operations VII. Water Quality Control Plant (WQCP) Operations VIII. Education, Motivation, and Community participation City’s Sustainability Policy and organizational structure is described in Attachment E. Description of Transportation and Land-use related activities are provided in Attachment F. Cost-Benefit Analysis and Impacts on City Budget The City undertakes cost-benefit analyses to prioritize GHG emission reduction actions for large projects. For example, when evaluating efficiency and conservation programs Utilities uses a ‘Total Resource Cost9’ approach. The WQCP’s decision to replace chlorine disinfection with an Ultra-Violet light based disinfection process was based on a life-cycle cost assessment. Replacement of street lights with Light Emitting Diode (LED) based fixtures had an 8-year payback on the investment. Though most of the City Hall building capital projects were justified based on non-energy efficiency related factors (maintaining occupant comfort and extending the life of the building), when selecting energy consuming equipment such as boilers, lighting, and motors for various applications, cost-effective energy efficiency improvement was an integral part of the decision making process. In evaluating alternate fueled vehicles for the City fleet, a similar analysis is undertaken. As a result of these efforts, the City’s saved an estimated $500,000 in utilities and vehicle fuel costs in 2012. The City will continue to emphasize cost-effectiveness whenever making purchasing decisions and will continue to include the cost of carbon in such assessments. How the Climate Protection Plan fits into other Environmental Sustainability Efforts The CPP intersects with and influences many other environmental sustainability programs and initiatives. For example, the Zero Waste plan calls for an increase of the diversion rate of several categories of solid waste which will significantly reduce Community GHG emissions. Another example is the Urban Forest Master Plan, where there are not only benefits from the carbon sequestration properties of an urban canopy, but value could also be garnered by reducing air-conditioning related energy costs by strategically locating trees to shade buildings. The Carbon Neutral electricity plan was also driven by the community’s desire to reduce its carbon footprint. Attachment D provides an update on all these activities and results to date. 9 The Total Resource Cost test measures the net costs of efficiency programs based on the total costs of the program, including both the participant and utility costs, and includes cost of carbon. April 15, 2013 Page 9 of 11 (ID # 3662) Economic Development and City’s GHG Reduction Goals Based on input from Council last year, staff has begun a preliminary assessment of the impact of the City’s GHG reduction goals on the community’s economic activities. While this is a broad and complex topic to assess in detail, the following observations could be made based on state- wide assessments and community level developments in recent years. The State of California in its economic analysis of the impact of regulations in implementing GHG emission reductions measures related to state law AB32 concluded that: “ …successful implementation of measures designed to reduce greenhouse gas emissions by increasing the efficiency with which California uses all forms of energy and by reducing its dependence on the fossil fuels that produce greenhouse gases…will mean that we can achieve the goals of AB 32 without adversely affecting the growth of California’s economy over the next decade, especially as the state recovers from the current economic downturn.10” In addition, the following examples demonstrate that the Community’s forward looking sustainability goals only strengthen community cohesion and contributes to Palo Alto’s economic and social vitality:  The community surveys conducted (2012) when developing the electric Carbon Neutral Plan and participation in the PaloAltoGreen program indicate that there is wide support in Palo Alto to pay a little more for sustainable growth and to reduce the Community’s GHG emissions.  Utility bill savings accruing from efficiency and conservation measures undertaken by Palo Alto residents (since 2007) are estimated at approximately $5 million per year.11 This savings was likely deployed in other areas of the community activity spurring economic growth.  The growth of cleantech companies in Palo Alto and Silicon Valley has clearly added to the economic vitality of the community. An interesting anecdotal example is the launch of the Utilities Emerging Technology (Test Bed) Program, which influenced a start-up company’s decision to locate and grow its operation in Palo Alto.12 10 Updated Economic Analysis of California’s Climate Change Scoping Plan. Air Resources Board, March 2010. 11 See Fig D-4 in Attachment D, which shows that per capita electricity, natural gas and water consumption has reduced considerably since 2007. 12 Autogrid, Inc., a Stanford based start-up, located its offices in Palo Alto and signed its first contract from the City to assist with the Commercial Customer Electricity Demand Response program, and at present has two dozen employees. April 15, 2013 Page 10 of 11 (ID # 3662) Future Vision for the Climate Protection Plan In the coming year, in coordination with the development of the City’s Comprehensive Plan, staff expects to develop a new CPP. It is anticipated that the new CPP will demonstrate Palo Alto’s leadership role by addressing the state’s aspirational GHG reduction goal of 80% reduction (from 1990 levels) by 2050, a stretch goal set by the California Governor’s order S-3- 05 of June 200513. The CARB is expected to begin regulatory proceedings to examine how to reach this goal in 2013, though actual recommendations may be years away. In order to contribute toward such an ambitious goal, attention will have to be paid to the topics of:  switching fuel sources from natural gas and gasoline/diesel to carbon neutral electricity;  continued emphasis on conservation and efficient use of fossil fuels;  smart transportation/land-use development;  enhanced building codes and standards; and  encouraging the development and deployment of breakthrough greening technologies through collaborative programs with the technology community. Adaptation to Climate Change In addition to such GHG emissions reduction efforts, Palo Alto will also play a leadership role in developing regional approaches and state/national level efforts to adapt to the impacts of climate change. Low-lying areas of Palo Alto (generally east of Louis Road) are subject to tidal flooding and mandatory flood insurance purchase requirements due to the inadequacy of the network of earthen levees along the San Francisco Bay shoreline. The risk of tidal flooding will rise in the future due to anticipated increases in sea level associated with global climate change. Although Palo Alto has lessened the risk to lives and private and public infrastructure by preserving large areas east of Highway 101 as dedicated open space, there are still several thousand mostly residential parcels within the tidal floodplain. The City’s primary response to sea level rise will be to advocate for raising and strengthening of the system of Bayfront levees. The two agencies with primary responsibility for improving the levees are the US Army Corps of Engineers (Corps) and the Santa Clara Valley Water District (District). The Corps-sponsored South San Francisco Bay Shoreline Study is addressing the need for levee improvements in the South Bay. This study has been progressing at a very slow rate, however, due to a lack of federal funding. The District has taken steps to accelerate the improvements through the use of local funding and State grant monies. The District has received a grant from the State Department of Water Resources to conduct design and environmental assessment of local levee improvements. In addition, the District ballot measure approved in the November 2012 election has $20 million earmarked for the study and design of levee improvements in Santa Clara County. Palo Alto staff continues to stay engaged in ongoing 13 Since CARB is also expected to delve into ways of meeting this long term aspirational 80% reduction goal for the state in 2013, the development of the new CPP could also be coordinated with this state effort. April 15, 2013 Page 11 of 11 (ID # 3662) discussions with the District, as well as the San Francisquito Creek Joint Powers Authority and the City of Mountain View, on the need for levee improvements to protect the community from the impacts of sea level rise. New Governance for Sustainability In the past year, staff has institutionalized new organizational elements to facilitate the movement to sustainability. Attachment E discusses the enhanced sustainability governance structure to continue to spur sustainability action within City operations and the Community, and to provide leadership at the regional and national level. The hiring of a Chief Sustainability Officer will help to coordinate the efforts already underway and in planning future City departmental initiatives. NEXT STEPS Each department within the City will continue to work on sustainability projects in their individual areas and in coordination with one another. Upon the recruitment of the new Chief Sustainability Officer, an update CPP will be developed in coordination with the development of City’s updated Comprehensive Plan, and under the umbrella of the new sustainability governance structure. Attachments:  Attachment A - Summary of 2007 Climate Protection Plan and Updates from 2010 (PDF)  Attachment B - City Municipal Operations Emissions (PDF)  Attachment C - Palo Alto Community and City Municipal Operations GHG Emission (PDF)  Attachment D - Sustainability Initiatives of the City (PDF)  Attachment E - Sustainability Policy and Organizational Structure (PDF)  Attachment F - Transportation and Sustainable Landuse (PDF) Attachment A: Summary of 2007 Climate Protection Plan & Updates from 2010 Page 1 of 3 Summary of the 2007 Climate Protection Plan NOTE: Emissions estimates have been updated since 2007, and are reflected in the body of the report. This summary is for reference purposes only. In December 2007 Council approved a Climate Protection Plan (CPP) that set a short, medium, and long term goals to reduce City operations and community greenhouse gas (GHG) emissions. These goals were: 1. Short Term Goal: By 2009, the City Operations will reduce emissions by 5% from 2005 emission levels for a total reduction of 3,266 metric tons of CO2. 2. Medium Term Goal: By 2012 the City Operations and Community will reduce emissions by 5% from 2005 emissions level for a total reduction of 29,702 metric tons of CO2. 3. Long Term Goals: By 2020, the City Operations and Community will reduce emissions by 15% of 2005 levels, equal to 119,140 metric tons of CO2, and bring the community in line with State emission reduction goals. Figure 1 and Figure 2 are the City’s and Community’s GHG emissions profiles, as outlined in the 2007 CPP. The City’s emissions of 65,329 Metric Tons of CO2e (MT CO2e) and the Community’s emissions of 728,720 MT CO2e combined are equivalent to approximately 14 tons per resident. Electricity and natural gas related emissions account for approximately 40% of the 793,621 MT CO2e total municipal plus community emissions. (Note: the natural gas leakage estimate has since been substantially revised downwards, from 19,358 MT CO2e to 4,717 MTCO2e.) Figure 1: Municipal (City Operations) GHG Emission Sources in 2005 (65,329 MT CO2e) Source: Climate Protection Plan: December 2007 Attachment A: Summary of 2007 Climate Protection Plan & Updates from 2010 Page 2 of 3 Figure 2: Community GHG Emission Sources in 2005 (726,720 MT CO2e) Source: Climate Protection Plan: December 2007 Short Term GHG Reduction Goals The City operations undertook a number of departmental level initiatives to meet the goal to reduce municipal GHG emissions by 5% at the end of 2009. Utilities energy efficiency and conservation programs were integral part of this effort. The initiative was classified under five main categories: employee education, electricity conservation and efficiency upgrades, paper use reduction, commute reduction, and waste reduction. A revised 2005 benchmark of 29,364 MT CO2e was established. This lower benchmark down from 65, 329 MT, figure 1 above) reflects the reduced estimate for natural gas leakage and biogenic emissions from the waste water treatment plant because the facility serves other cities too and Palo Alto has minimal control over those emissions. April 2010 Update In April 2010, staff reported to Council that municipal GHG emissions declined by 11% in 2009 relative to the revised baseline year of 2005 (excluding employee commute estimates) (CMR: 194:10). Emissions were down from 29,364 MT CO2e to 25,518 MT CO2e. The principle contributors to this reduction are outlined below: Attachment A: Summary of 2007 Climate Protection Plan & Updates from 2010 Page 3 of 3  Major upgrades and process improvements at the water quality plant, accounted for 75% of the reduction o Replace natural gas used in the bio-solids incinerator emission control equipment with landfill gas that had previously been burned in a flare o Improve aeration system and replace air diffusers o Install more efficient motors and lighting fixtures  Upgrade building systems and fixtures o Lighting fixture upgrades at the Elwell Court building o Reduced lighting levels at selected locations o City hall upgrades: motors, boilers, HVAC system Updated 2012 GHG Reduction Goal for the City Based on the progress made since 2007, City Council in 2010 increased the City municipal GHG reduction goal to 20% below 2005 levels by 2012. Attachment B: GHG Emissions of City Municipal Operations Page 1 of 3 Attachment B: GHG Emissions of City Municipal Operations: Year 2005 versus 2013 City municipal operations related emissions drivers and associated emissions are shown below. Table B1: City Operations GHG Emission in 2005 and 2012 (in MT of CO2 equivalent) – Biogenic and Anthropogenic, no adjustment for hydro conditions of PAG purchases - 2005 2012 Scope 1 Biogenic Scope 2 Scope 1 Biogenic Scope 2 Buildings and Other Facilities 8,723 0 1,819 7,016 0 1,155 Streetlights and Traffic Signals 689 534 Water Delivery Facilities 2 0 67 34 0 42 Wastewater Facilities 8,504 16,689 2,546 6,414 15,602 1,950 Vehicle Fleet 2,835 1 0 2,546 0 0 Power Generation Facilities 0 0 8,570 227 0 3,839 Solid Waste Facilities 6,846 5,853 29 4,336 3,827 19 Other Processes & Fugitive Emissions 3 9 26,912 22,543 13,720 20,582 19,429 7,539 Scope 1 and Scope 2 emissions are non-biogenic emissions and caused by human activity. Biogenic emissions are assumed to be net carbon neutral and not reported under GHG emission reporting protocols. Table B2 below shows the transformation of the Table B1 above by excluding biogenic emissions, and shows an emission reduction of 31%. Table B2: City Operations GHG Emission in 2005 and 2012 (in MT of CO2 equivalent) – Excludes Biogenic, not normalized for hydro conditions of PAG purchases - GHG Emissions comparison (Scope 1 & 2) 2005 2012 Water Delivery Facilities 69 76 Wastewater Facilities 11,049 8,364 Vehicle Fleet 2,835 2,546 Streetlights & Traffic Signals 689 534 Solid Waste Facilities 6,876 4,354 Power Generation Facilities 8,570 4,067 Buildings & Other Facilities 10,542 8,172 TOTAL 40,629 28,112 30.8% Table B2 does not include the effects of the purchase of PaloAltoGreen resources and the normalization of the vagaries of hydroelectric supply conditions. The Table B3 below accounts for these two effects and shows a 53% reduction in emissions. Attachment B: GHG Emissions of City Municipal Operations Page 2 of 3 Table B3: City Operations GHG Emission in 2005 and 2012 (in MT of CO2 equivalent) – Excludes Biogenic, normalized for hydro conditions and PAG purchases – GHG Emissions comparison (Scope 1 & 2) 2005 2012 Water Delivery Facilities 74 64 Wastewater Facilities 11,269 4,659 Vehicle Fleet 2,835 2,546 Streetlights & Traffic Signals 748 387 Solid Waste Facilities 6,878 4,349 Power Generation Facilities 9,308 3,008 Buildings & Other Facilities 10,698 4,643 TOTAL 41,811 19,655 53.0% Figure below graphically illustrates Table B3 and is a reproduction of Figure 1 from the body of the report. Attachment B: GHG Emissions of City Municipal Operations Page 3 of 3 The primary drivers for GHG emission reduction since 2005 are:  Building and Other Facilities – Reduction in electricity and natural gas consumption, combined with greater level of renewable energy in regular electricity supply and purchase of renewable energy certificates from PaloAltoGreen.  Power Generation Facilities – Elimination of transmission-related emissions due to long-term layoff of transmission assets, combined with greater level of renewable energy in regular electricity supply  Solid Waste Facilities – Closure and capping of the landfill, resulting in less methane production and leakage. Higher collection in CY 2011 likely to be attributable to more rain during the year.  Streetlights and Traffic Signals – Greater level of renewable energy in regular electricity supply  Vehicle Fleet – Slight reduction in consumption of gasoline and diesel fuels, along with increased reliance on less carbon intensive CNG  Wastewater Facilities – Combustion of biogenic methane from landfill in incinerator (replacing natural gas), combined with greater level of renewable energy in regular electricity supply and purchase of PaloAltoGreen RECs.  Water Delivery Facilities – Greater level of renewable energy in regular electricity supply Attachment C: GHG Emissions of Palo Alto Community and City Municipal Operations Palo Alto Community & City Municipal Operations GHG Emission: Reduction of 22% since 2005 City Municipal Operations* & Palo Alto Community GHG Emissions Summary Excludes Biogenic Emissions**, All units in Metric Tons (MT) of CO2 equivalent Consumption Quantity 2005 Emissions in 2005 (MT of CO2e) Consumption Quantity 2012 Emissions in 2012 (MT of CO2e) Notes Scope 1 Emissions Natural Gas Use (in Therms)31,374,970 166,350 30,086,536 159,519 1 Natural Gas Distribution Leakage 4,717 4,718 2 Palo Alto Landfill Fugitive Emissions 6,811 4,336 3 Wastewater Process Emissions 8,504 6,414 4 Scope 2 Emissions -- Actual Total Electric Load in MWh 996,091 966,839 Hydro Supply (MWh)548,760 413,584 Renewables Supply (MWh)49,980 188,566 Brown Power Supply (MWh)397,352 158,427 364,689 145,404 5a Palo Alto Green Purchases (MWh)30,601 (12,201)75,805 (30,224)6 Scope 2 Emissions -- Weather Adjusted*** Total Electric Load 996,091 966,839 Hydro Supply (MWh)514,073 514,073 Renewables Supply (MWh)49,980 188,566 Brown Power Supply (MWh)432,039 172,257 264,200 105,339 5b Palo Alto Green Purchases (MWh)30,601 (12,201)75,805 (30,224)6 Scope 3 Emissions Commute into, from, and within City 371,870 335,390 7 Life Cycle Emissions From Annual Total Waste Placed in Landfills 69,491 24,823 32,434 12,725 8 Landfilling Recyclable meterial 54,838 20,701 8 Total (weather-adjusted, biogenic excluded)797,969 618,918 Emission Reduction 22% 1 2 3 4 5 6 7 8 * ** *** Study results from Fehr and Peer (03/19/2013) using Valley Transportation Authority regional transportation model based Vehicular Miles Travelled (VMT) and vehicular profiles - does not account for Palo Alto specific parameters related to greater penetration of alternate fuel vehicles, bicylce use, etc. Study results under review. Based on characteristics and tons of material landfilled: 2005 and 2012 figures. Table excludes biogenic emissions related to: Landfill gas flaring (3,827 MT) and WQCP sludge incineration (15,602 MT). Normalized to account for the vagaries of weather on hydroelectric supplies. Municipal emissions related to electricity and natural gas consumption included within utility load numbers; fleet vehicle emissions also assumed to be included in community wide commute related emissions estimates made by consultant. Notes Total Community supply of natural gas use/delivery. Calculated using total captured landfill gas, actual methane percentage, and assumed 75% capture rate. 2005 estimate has been revised to reflect current methodologies. Represents N2O emissions from biological treatment process and release of Nitrogen. a. Represents actual quantity of brown power related emission @879/lbs/MWh. b. Weather normalized (for hydro electric generation) quantity of brown power. Emissions saved due to purchase of PaloAltoGreen related Renewable Energy Certificates. Leakage from the natural gas distribution system Attachment D: Sustainability Initiatives of the City Page 1 of 25 Attachment D: Highlights of Sustainability Initiatives by City Municipal Operations This discussion is compiled in the order of the sections in the 2007 Climate Protection Plan (CPP). In each section, staff has evaluated actions taken to reduce City and Community GHG emissions. To the extent possible, staff has reviewed existing programs, described results and the potential actions or programs that will help reach future goals. The topics contained in this attachment are: I. Utilities Operations II. Sustainable Purchasing, IT and Administrative Practices III. City Fleet Operations IV. City Facilities Operations and Capital Projects; Public Works Projects V. Green Building VI. Zero Waste and Landfill Operations VII. Water Quality Control Plant (WQCP) Operations VIII. Education, Motivation, and Community participation Attachment F discusses the topic of Transportation and Sustainable Land Use, an important area that accounted for 54% of the Community GHG emissions in 2012. I. Utilities Operations Considerable progress has been made through the City of Palo Alto Utilities (CPAU) programs to reduce the carbon emissions associated with Community electricity and natural gas usage since 2005. Electric supply related emissions, which accounted for 160,000 MT in 2005, reduced by 53% to 75,000 MT in 2012. This reduced reliance on fossil fuel based electricity supply was primarily driven by:  Increase in renewable electricity supply purchase, up from 5% (2005) to 21% (2012)  Higher participation in the PaloAltoGreen program: 3% (2005) to 8% (2012)  Greater levels of electric efficiency and conservation – estimated at 4.4% since 2005 Figure D-1 below illustrates the electricity supply sources for the base year (2005) and 2012 normalized to average hydro conditions1. 1 Hydro supply varies widely each year, but on average supply approximately 50% of the electricity needs. For comparative purposes and to measure progress towards meeting long term GHG reduction goals without the impact of varying hydro conditions, average year hydro supplies are assumed. Attachment D: Sustainability Initiatives of the City Page 2 of 25 Figure D-1: Comparative Electricity Supply Sources: 2005 & 2012 (normalized to average hydro conditions) As a result of Council’s adoption of the Carbon Neutral electric supply plan in March 2013, all electric supply in 2013 would be sourced from large hydro and other renewable resources making the electric portfolio emissions zero2. Natural gas supply related GHG emissions, on the other hand, have remained relatively flat since 2005, with efficiency and conservation programs and reduced customer loads accounting for a 4% reduction in carbon emissions, down from 166,000 MT in 2005 to 160,000 MT in 2012. Investigations are underway to determine if renewable biogas supplies could be acquired to meet all or part of the Community’s natural gas demand. Energy Efficiency and Conservations in the Community Since 2005, CPAU’s efficiency and conservation programs for the community have contributed to considerable customer usage and bill reductions, along with the associated GHG emissions reduction. The following Figures D-2 and D-3 illustrate the impact of energy efficiency on the projected electric and gas sales, respectively. 2 Renewable Energy Certificates (RECs) would be purchased to neutralize the GHG emissions from the market power resources. Attachment D: Sustainability Initiatives of the City Page 3 of 25 Figure D-2: Impact of Energy Efficiency on Electric Sales Figure D-3: Impact of Energy Efficiency on Gas Sales In addition to CPAU efficiency and conservation programs3, state and federal energy and water efficiency appliance and equipment standards help residents reduce energy 3 CPAU’s efficiency and conservation program related savings are computed based on specific measurement criteria mandated by state law. This tends to undercount actual savings and does not account for improved appliance and equipment efficiency standards. Improved building codes and appliance efficiency standards are included in the sales forecasts. Attachment D: Sustainability Initiatives of the City Page 4 of 25 consumption further as illustrated below. Figure D-4 shows that per capita residential electricity and natural gas consumption has declined by 8% since 2007 and water consumption is down 17%. The resulting customer bill reduction is estimated at approximately 12% or $240/per year on average for a three-person household or close to $5 million per year for the entire Community. While these are macro level estimates, it does indicate a positive trend in consumption reduction per capita. Figure D-4: Comparative Residential Per Capita Utility Consumption Declining CPAU Energy Efficiency Program Achievements State and Federal agencies continue to tighten appliance efficiency standards and code requirements leading to additional energy savings for the community. These savings are in the baseline as shown in the per capital consumption, and cannot be counted by CPAU to meet Council established gas and electric long-term energy efficiency goals. CPAU continues to aggressively pursue those goals and expects to achieve an additional reduction of 4.8% of electricity usage and 2.8% of natural gas usage by 2023. CPAU’s portfolio of Demand Side Management (DSM) programs for residential and commercial customers include local photovoltaic programs, energy and water efficiency, as well as conservation. During FY 2012, a wide variety of programs were available to Attachment D: Sustainability Initiatives of the City Page 5 of 25 customers and a significant level of savings was achieved. Some of the projects profiled below are one-time achievements and not easily replicable.  One industrial customer completed a very significant project resulting in 5.8 million kilowatt hours of annual savings. This data center efficiency project, including lighting controls, use of outside air and economizers for cooling, and the use of variable speed drives on cooling equipment, netted this customer efficiency rebate of $583,000 during the year.  A major hospital replaced its laboratory sterilizer and cart washer equipment, resulting in an annual savings of 14,000 hundred cubic feet (CCF). CPAU provided a $50,000 rebate for making this process change. An upgrade of this magnitude is typically made only every 50 to 100 years at hospitals, so the significance of the long-term improvement to the community cannot be overstated.  Home Energy Reports comparing residents’ energy use with neighbors delivered efficiency results of almost one million kilowatt hours and close to 111,000 therms of savings. These savings account for 24% of the total natural gas DSM program achievements.  Promotion and education on efficient and innovative technologies was greatly expanded during the year. Installation of the demonstration EcoHome project highlighted an increase in educational programs. The EcoHome, which displays and promotes sustainable construction and appliances, provided valuable information to over 620 residents in 28 different tours. Other workshops and outreach events for water conservation, photovoltaic, solar water heating and energy efficiency trained well over 1,500 residents on how to reduce their carbon footprints. A wide variety of new marketing and promotion was used during the year to further promote these activities. In addition, the water efficiency and conservation programs have achieved more than 1.5% reduction in water consumption since 2005, but these savings have minimal impact on the City’s carbon footprint. Some of the specific DSM programs include: direct installation of efficiency measures for low income customers, rebates for installation of efficient appliances and equipment, education programs, residential energy use audits, home energy reports, commercial customer programs by end use and type of business class, a green building construction program, and many others. CPAU continues to review and enhance its programs for all members of the Community, whether low income or a major international corporation. The FY 2012 DSM Program Report for FY 2012 is at: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=29871. Attachment D: Sustainability Initiatives of the City Page 6 of 25 Utility Distribution System Operations CPAU also continues to minimize the impact of distribution operations on the environment. Such initiatives include:  Replacing Street Lights with LED Fixtures Palo Alto’s 6,300 street lights consume 0.4% of the community’s electrical loads and cost $410,000 to maintain each year. Over the past 3 years, with Federal grants and City funds, the City has invested $1.3 million to replace approximately half of the lights with new LED based street lighting which has a lower energy consumption, reduced maintenance cost, and a higher illumination level. This investment is expected to reduce annual maintenance cost by 30% and annual energy consumption by 60%, resulting in a simple payback of 8 years. Another 2,300 streetlights are projected to be replaced by 2014. The remaining 15% of the streetlights which are mostly decorative or special type lighting is expected to be replaced by 2015.  Control and Management of Sulfur-hexafluoride (SF6) Equipment and Replacement Sulfur-hexafluoride is a high-potent GHG. Due to its characteristics as a good electrical insulator, SF6 gas based electrical equipment gained popularity three decades ago. The City purchased several of these devices for substation and distribution system installation. Since the impact of this gas on the climate was identified, CPAU has stopped purchasing them, has maintained strict protocols to ensure the gas does not leak from existing equipment, and has begun replacing them with more benign equipment.  Upgrade of Electric Distribution Voltage Over the past few decades, CPAU has been converting the voltage of the distribution system from 4 kV to 12 kV to reduce distribution line losses, reduce the amount of spare equipment purchased and stored for emergencies, and reduce maintenance cost.  Customers Connect with Advanced Meters A 300-home pilot program called “CustomerConnect” is being launched this summer with advanced electric, gas and water meters which will enable customers to have access to hourly utility consumption data and analytical tools to assist with better utilization of utility services. The objective of the program is to gauge interest and applicability of this technology within Palo Alto and to observe how residents might reduce energy usage through such feedback. For further information, see: www.cityofpaloalto.org/ULTcustomerconnect Attachment D: Sustainability Initiatives of the City Page 7 of 25  Purchase of Battery Powered Bucket Truck Lifts CPAU is exploring the purchase of two bucket trucks that will have battery- powered bucket lifts to eliminate the need for the engine to idle while construction is in progress. This will enhance safety, and reduce noise pollution and GHG emissions.  Emerging Technology Demonstration In 2012, CPAU launched a program to open up the utility infrastructure as a ‘test bed’ for innovative technologies to demonstrate and prove their value – another way the City is helping to meet the challenge of climate change. Since its launch, a number of technologies are under evaluation. See: www.cityofpaloalto.org/UTLinnovation. Utilities Plans for the Coming Years (2013 to 2020) CPAU plans to continue its programs to reduce GHG emissions for the City and Community, and has many plans in place including the following:  Continue to aggressively pursue energy efficiency and conservation opportunities, as well as support the Planning and Community Development Department in encouraging green buildings and permitting processes. These programs are expected to reduce electricity usage by 4.8% and natural gas usage by 2.8% by 2023.  Encourage local solar electric or photovoltaic (PV) resource investments through rebates and a guaranteed energy buy-back program in the Palo Alto CLEAN program. The PaloAltoGreen program also continues to support local PV resources by buying PV Renewable Energy Credits (RECs). In fact, for 2013 the PaloAltoGreen program is supplied entirely by solar PV RECs from California. (In previous years the supply had been 97.5% wind RECs from across the western U.S. and 2.5% solar RECs from California.)  Implement renewable resource procurement to meet Carbon Neutral goals for 2013 and the City’s RPS goal of at least 33% of sales coming from renewable energy sources by 2015.  Transform the PaloAltoGreen program as the Carbon Neutral electric supply plan is implemented.  Implement Residential Electric Vehicle (EV) Time-Of-Use rate for a pilot program to encourage late night and early morning charging at single family homes. Charging EVs during peak use times could impact local distribution transformers and require expensive upgrades. Charging EVs at night and in the early morning reduces the cost to purchase electricity as well as the probability of having to Attachment D: Sustainability Initiatives of the City Page 8 of 25 upgrade local transformers. Using EVs instead of internal combustion engines for vehicles will also reduce Community GHG emissions. Based on California Energy Commission (CEC) projections, Palo Alto may have 3,000 to 10,000 residential and commuter EVs charging in the City by 2020, which would reduce Community GHG emissions by 1.5% to 5% by 2020. However, EVs are expected to increase Community electrical energy load by 1% to 2%.  Implement the 300-home Residential CustomerConnect pilot to provide hourly energy and water usage data to participating customers. This will be accomplished by installing advanced meters and web based customer information portals with analytical tools to help conserve energy and water supplies. CPAU plans to undertake a similar Commercial Customer engagement pilot in the 2014-2015 period.  Evaluate the implementation of advanced metering infrastructure throughout the city based on the results of the pilot projects.  Evaluate the use and benefits of Distribution Automation equipment to improve electric system operating efficiency, improve service reliability, and increase energy efficiency. II. Sustainable Purchasing, IT & Administrative Practices Sustainable Purchasing Products and services acquired by the City will have an environmental impact during their manufacture, distribution, use, and disposal. Incorporating environmental performance criteria into procurement decisions can have a significant impact on the City’s carbon footprint, as well as supporting other sustainability policies and programs such as Zero Waste, green building, and pollution prevention. The City’s purchase of environmentally preferable products and services, in conjunction with the environmental purchasing efforts of other Bay Area or State Public Agencies, has impacts beyond City operations. The City has the potential to stimulate market demand and further expand access to these products and services. Many purchases that are environmentally preferable are also fiscally preferable because of less material use (e.g., paper when copiers and printers are set to duplex), reduced maintenance (e.g., structural pest control which relies on long-lasting structural repairs instead of expensive automatic monthly spraying or other chemical control), and direct costs, (e.g., remanufactured toner cartridges, which when specified correctly cost approximately 30-60% less per copy than new cartridges). Other cost savings can be seen by reduced-risk products that also decrease potential harm to users and to the environment, and reduced disposal and end-of-life costs. Attachment D: Sustainability Initiatives of the City Page 9 of 25 The CPP authorized the implementation of a green purchasing program in 2007. Since that time the City has adopted a Green Purchasing Policy which supports existing environmental policies and Council direction to reduce GHG, pesticides, mercury and achieve Zero Waste and pollution prevention goals. The following products and services have been purchased or discontinued with green purchasing criteria:  Copiers and printers ordered by the City’s Information Technology Department (IT) with duplex capability, preset to provide that function before they are deployed for use. Printers with a duplex function are replacing older models that are phased out of use. Through these efforts an initial assessment in 2010 (based on 2009 use) indicated a 15% reduction in paper use and annual savings of approximately $7,000 in paper costs. This number has not yet been revised to reflect more recent paper purchases.  EPEAT Gold™ standard computer and monitor purchases required by IT. EPEAT criteria reflect several categories of environmental attributes that cover the full lifecycle of electronic products including the reduction or elimination of environmentally sensitive materials, material selection, design for end of life, energy conservation, corporate performance and packaging.  Low-mercury fluorescent lighting  Discontinued use of hand soaps containing triclosan–an anti-bacterial product associated with water quality and potential human health issues  Discontinued use of spray insecticides and poison rodenticides. Structural pest control requires the rigorous EcoWise Certification (Palo Alto was the first to require this certification) and additional requirements for local reporting and bee protection. .  Use of locally-sourced mulches, OMRI certified organic fertilizers and other waste reducing measures mentioned in the Bay-Friendly landscaping standards in landscape maintenance contracts.  GreenSeal™ Certified products for use by the City’s custodial contractor. These products place an emphasis on reduced-toxicity and higher recycled content (these same standards for City staff use will be explored in the coming months).  Recycled-content paper and vegetable-based inks. Out-sourced printing services must require increased amount of recycled-content paper and vegetable-based inks. All utility inserts are now printed on 100% post-consumer content paper.  Discontinued purchase of expanded foam food ware and plastic bags by staff or for use at City-sponsored events. Attachment D: Sustainability Initiatives of the City Page 10 of 25  Drinking water station to replace the use of single use bottles at City events  In select contracts, additional evaluation points are given to those companies that are Certified as a Bay Area Green Business  Boilerplate language in Purchasing contract Terms and Conditions has been revised to require extended producer responsibility, disallow the use of expanded foam plastics as packaging material, and standards for energy and water efficiency and Zero Waste.  Multiple life cycle costing workshops have been held by Utilities for key accounts and staff. Additional workshops are planned for the future as needed.  The City of Palo Alto received the 2011 Green California Summit and Exposition Award for Leadership in Green Purchasing and is considered a regional leader on this front. In addition to the purchase of greener services and goods, green purchasing policies are now required to qualify grant funding from some public agencies. The $250,000 grant the City received from CalRecycle for street maintenance required a green purchasing policy to qualify for funding. Although the City has made good strides on its green purchasing program, the very limited staff time available to run this program has not allowed for a detailed quantification of how these efforts contribute to the City’s GHG reduction, Zero Waste and other environmental goals. IT & Administrative Service Department Related Initiatives  Effort to switch to laptops from desktops could assist with reducing energy consumption by more than 50%  Increased the temperature setting in the server room, reducing the air- conditioning loads marginally  Established duplex printing reducing single-sided printing  Established Green IT Purchasing guidelines striving for the procurement of EPEAT Gold-rated IT equipment as well as the reduction of expanded plastics in packaging materials  Deployed video conferencing capabilities in City facilities to support more virtual meetings allowing for less travel Attachment D: Sustainability Initiatives of the City Page 11 of 25  Make the Budget and Audited financial statements available electronically and reduce the amount of printed copies – over the past 5 years approximately 40% paper reduction. Planned Activities  Supply Chain Plastics Reduction Project. This project led by Public Works- Watershed Protection is being done in partnership with the cities of Sunnyvale and San Jose. This effort requires the elimination of expanded foam plastics, e.g., Styrofoam from secondary and shipping packaging received by the City and broader efforts to minimize overall packaging (e.g., right-sized boxes) while continuing to ensure product protection. Vendor outreach is being conducted to ensure knowledge of the requirement as well as direct follow up with vendors who send unwanted materials in City shipments. Liquidated damages for disposal costs of plastics that are received may be assessed based on recently revised purchasing Terms and Conditions. The County of Santa Clara Waste Reduction and Recycling Commission acknowledged this effort as a model best management practice and is recommending its adoption in other Santa Clara County cities.  Greening the purchase of Office Supplies: a Request for Proposal for a new office supply contract was released in 2012. A new contract is expected to be awarded in 2013 and is anticipated to yield both significant cost savings and improved environmental performance. It will include environmental benefit reporting capabilities and online ordering screening to encourage green purchases and discourage or prohibit those purchases that do not conform to the City’s purchasing and green purchasing requirements.  Developing a “Cloud First” strategy for any new technology initiatives reducing energy costs for power and cooling in the Data Center. Establishing a Data Center Footprint Reduction initiative performing consolidation via virtualization and Cloud technologies III. City Fleet Operations Fleet Operations has strived to reduce the carbon foot print of the fleet. These efforts and accomplishments include:  The Clean Bay Business award in 2010 for 10 consecutive years of environmental awareness with regard to Best Practices in preventing and containing vehicle pollutants from running into the storm drain-watershed system Attachment D: Sustainability Initiatives of the City Page 12 of 25  Maintaining city’s cooperatively owned back-up electric generators (COBUG), reducing the required testing run time down from 8 hours per week to 2 hours per month and saving natural gas usage  Upgraded fueling island at the MSC incorporating an improved vapor recovery system to capture harmful gasoline vapor from escaping into the atmosphere when refueling vehicles  Since 2007 began retrofitting all on road heavy duty diesel equipment with particulate filters to reduce the harmful diesel particulates generated (PM10 level) by diesel engine. Currently the entire heavy duty diesel powered fleet is has been retrofitted with particular filters.  An adopted anti-idle policy for road equipment. The policy helps to reduces emissions, conserves fuel and reduces maintenance cost associated h with high idle time. The Utilities Department is considering the purchase of battery powered bucket truck lifts to eliminate truck idling during overhead line maintenance.  Following all OEM recommended oil change interval to help reduce used oil and oil filters added to the waste stream. Also use several re-refined oil and antifreeze products in service inventory to further reduce additional waste products from entering the waste stream. By 2012 fleet maintenance has used over 3,000 gallons or re-refined oil products.  A decrease in the number of miles travelled by City’s light duty vehicles from 1.85 million miles (2005) to 1.50 million in 2012- a 19% drop. The resulting reduction in transportation fuel use is illustrated below. Figure D5: Illustration of Fuel Use Pattern by Fleet - 2005 to 2012 05 06 07 08 09 10 11 12 Attachment D: Sustainability Initiatives of the City Page 13 of 25 Correspondingly the fuel related emissions have also dropped from 2,833 MT (2005) to 2,544 MT in 2012, a 13% reduction as shown in the table below. It is also estimated that the resulting fuel cost savings is $100,000 to $150,000 per year. Table D1: Fuel Use and Corresponding GHG Emission Trends: 2005 to 2012 2005 2006 2007 2008 2009 2010 2011 2012 Fuel Use Gasoline gal.149,861 156,142 152,153 146,398 131,096 137,850 146,595 147,849 Diesel gal.97,676 103,888 131,810 131,423 122,341 126,500 134,262 95,036 Biodiesel (B20)gal.46,667 27,261 0 0 0 0 0 0 CNG (City operations)gge.20,217 18,799 28,197 36,387 36,713 49,948 36,554 40,136 CNG (including PASCO, PAUSD)gge.44,273 60,928 80,491 88,088 86,786 87,635 85,872 91,125 Fleet Emissions Gasoline tons 1,316 1,371 1,336 1,285 1,151 1,210 1,287 1,298 Diesel tons 997 1,061 1,346 1,342 1,249 1,292 1,371 970 Biodiesel (B20)tons 381 223 0 0 0 0 0 0 CNG (City operations)tons 139 129 193 250 252 343 251 275 CNG (including PASCO, PAUSD)tons 304 418 552 604 595 601 589 625 Total 2,833 2,783 2,875 2,877 2,652 2,845 2,909 2,544 Planned Activity in the next 5 years Fleet Maintenance has committed to the use of CNG fueled vehicles and initiated the purchase of 17 new Honda CNG Civics. Electric Vehicle Zero emission units for specific use or as pool use replacement vehicles are being considered. Replacement vehicle specifications have focused fuel efficiency, low emissions, and modern build techniques. IV. City Facilities Operations & Capital Improvements, and Public Works Projects The Public Works department is committed to building, managing and operating City buildings and infrastructure in a sustainable manner. Sustainable practices are incorporated into major building renovations and everyday work practices.  Sustainable work practices for cleaning maintenance include cleaning with environmentally friendly chemicals that are Green Seal Certified and using paper towels in restrooms that contain no chlorine and high in post-consumer content. Pest management also focuses on prevention and then using non-toxic pesticides.  Sustainable work practices for building system maintenance include improvements in mechanical, electrical, and plumbing systems. Mechanical improvements include the use of cool roofing materials to meet Title 24 Building Energy Efficiency Standards, replacing air conditioning units with more energy efficient units (when existing units need replacement) and using Building Management Systems (BMS) to control and monitor and mechanical and electrical equipment (including lighting) via computers in some facilities. Electrical Attachment D: Sustainability Initiatives of the City Page 14 of 25 improvements include the use of high efficiency T8 lamps, some beginning implementation of LED parking lot lighting, the use of occupancy sensors for office lighting, and bi-level lighting for parking garages. Plumbing improvements include the use of low flow urinals and low flow toilets.  Facilities recently purchased software that allows individual building managers to better track, analyze, and report on utility consumption and cost. Improved data reporting creates more accountability of energy usage. Data from the report now makes it easier to analyze and “spot” unusual usage spikes which may be a result of a water leak or faulty equipment. It also makes it simpler to track the outcome of conservation efforts. The application can also be utilized to determine which buildings are consistently using more energy than others of a similar size and usage and if needed, be used as a basis to propose a Capital Improvement Project for building system upgrades. The tool will facilitate the benchmarking of City buildings, by using EPA’s Portfolio Manager software, with similar buildings in the state and the nation.  Recent building renovations include LEED certified buildings such as the Art Center, Downtown Library, and the soon to be completed Mitchell Park Library and Community Center.  In addition to implementing sustainable practices, the overarching operational objective of Facilities is to maintain the building in good order for the comfort of the occupants and users, reduce the operating cost of maintaining the buildings, and extend the useful life of the buildings. In this regard, reducing the energy and water usage is an important consideration.  The City Hall building upgrade project over the past 3 to 6 years has resulted in noticeable reduction in energy and water consumption. The project included the installing of new boilers, chiller fans, upgrading motors to premium efficiency, converting electric reheat coils to hot water reheat system, replacing the variable air volume (VAV) box and associated controls, installing a modern building management system, lighting sweep control systems, etc. It is estimated these upgrades have reduced City Hall electricity and natural gas bills by about $50,000 per year in 20124.  With state grant funds, Facilities installed 5 electric vehicle chargers at 3 downtown garages. In 2012, 6,200 charging sessions took place at these chargers using 42,000 kWh of electricity at a cost of $4,500 to the City. The estimated GHG reduction as a result on such charging is estimated at 25 MT of CO2 equivalent. 4 Most of this equipment was replaced because they were near the end of their useful life. However, computing simple payback from a purely financial terms, the estimated payback was approximately 22 years. Attachment D: Sustainability Initiatives of the City Page 15 of 25  Public Works staff continues to promote measures that reduce storm water runoff and associated urban pollutants in order to improve the health of local creeks and San Francisco Bay. Using specially-designated revenue from the monthly storm drainage fees charged to developed properties throughout the City, the Storm Water Rebate Program offers financial incentives to residents and businesses for the installation of rain barrels, rainwater cisterns, permeable pavement, and green roofs. In addition, staff is implementing a “green street” project to address drainage system deficiencies in the Southgate neighborhood. The project includes the construction of bioretention planters at selected intersections that will intercept, infiltrate, and filter storm water runoff. The planters will be filled with native plants and permeable soil media that will treat and reduce runoff before it is discharged to the storm drain system. A number of existing concrete/asphalt walkways and crosswalks in the neighborhood will also be replaced with permeable interlocking concrete pavers to further reduce storm runoff.  Park renovation projects managed by Public Works incorporate sustainable landscaping and turf elimination to conserve water whenever possible. The recently completed Cogswell Plaza project is estimated to save 240,000 gallons of water annually. The Eleanor Pardee Park project, which will be in construction in Summer 2013, is projected to save 360,000 gallons per year. V. Green Building The City’s Green Building Program was initiated in 2003 with requirements for Green Building checklists at early stages (Architectural Review) of an application to ensure an integrated approach for projects. In 2007, zoning ordinance changes outlined voluntary compliance criteria, followed in 2008 by a Green Building ordinance requiring Green Point Rated (Build It Green) compliance for residential projects and Leadership in Energy and Environmental Design (LEED) Silver level compliance for non-residential projects meeting certain size thresholds. The City of Palo Alto established itself as a national leader for its progressive, high-level program for a new generation of efficient buildings in Palo Alto, which are environmentally responsible and healthy places in which to live and work. Following the 2008 ordinance, City staff has recommended updates to the ordinance to Council each year, including addition of Home Energy Rating System (HERS) requirements for existing buildings,. In 2011, with the State’s adoption of the CalGreen building codes, the City’s local amendments to CalGreen required a higher level (Tier 2) compliance as mandatory (approximately LEED Silver level plus 15% additional energy efficiency for buildings beyond Title 24 requirements. In 2011, the City became the Attachment D: Sustainability Initiatives of the City Page 16 of 25 nation’s first city to pilot LEED for Neighborhoods as a voluntary program, intended to measure the success of a project in meeting community goals for walkability, access to transit, provision of mixed uses and services, and open space design, etc. Progress: 2007- 2011 • LEED “Silver” certification or equivalency was required in 2007 for new City buildings (e.g., the Downtown Library; Mitchell Park Library and Community Center and the Art Center) and new private buildings over 5,000 square feet; increased energy efficiency 15% beyond the state mandatory level, with rebates available through the Utilities department for even higher levels of savings; • Between 2007 and 2009, the program went from voluntary to mandatory and including both residential and commercial development; • Staff continues to work with Utilities staff on publicizing energy efficiency and solar rebate programs; • Sustainability Planner hired to implement program within Current Planning section; • New single-family residential construction required to have a minimum level of green building compliance (70 GPR points, with increasing points required for larger homes, etc.).  California Energy Code (CalGreen) was adopted by reference in 2010, with local amendments for higher “tiered” levels of increased energy efficiency and thresholds.  In FY 2011, two additional sustainability initiatives were implemented: o The first LEED-ND pilot program (LEED for Neighborhood Development) in the nation for assessing a development site’s ability to qualify as a sustainable neighborhood project, including features that reduce dependence on automobile use, increase walkability, and encourage healthy living. The program lasted one year. o The initiative to disclose energy use for existing buildings undergoing small renovation work to better understand the existing buildings’ current performance and areas where education, policy, and programs can be influential in reducing usage. The City has monitored its progress with annual updates to the codes through 2011, with another update scheduled for late 2013. The 2011 report noted a practice of Attachment D: Sustainability Initiatives of the City Page 17 of 25 annual tracking of the numbers and square footage of completed green building projects as well as the number of LEED and Green Point Rated certifications and point ratings achieved. In the last half of FY 12 and first quarter of FY13, consultants were used to manage the green building program while the sustainability planner vacancy went unfilled.  In 2011, it was estimated that a little over 2,000 people are either working or living in green buildings throughout the City. Prior to the City’s ordinance, as few as six green building projects were on record throughout the City. At the end of FY 2011, over 240 had been completed or were under construction. Projects are using one of the following standards: LEAD, Build It Green GreenPoint Rated (GPR), or the California Green Building Code with locally adopted enhanced measures (CALGreen). FY 2012 Statistics  Green Building permit applications processed: 887 (down from 961 in 2011)  Green Building valuations subject to mandatory regulations: $543 million (up from $188 million in 2011)  Green Building square feet subject to mandatory regulations: 1.342 million square feet (up from 1,250 million in 2011)  Energy savings: 1,701 kBtu/yr (down from 3,399 kBtu/yr in 2011)  Waste diversion from landfill: 18,328 tons (down from 28,177 tons)  CO2 emissions reduction: 21.13 tons; only 10 projects reported CO2 emissions reduction estimates. This is down from 2,818 tons reduced in 2011  Water reduction estimates: 2.11 million gallons (2011) VI. Zero Waste and Landfill Operations The community’s Zero Waste goals documented in the 2007 Zero Waste Operational Plan set a mid-term target of achieving 77 percent diversion by 2011 and striving to reach Zero Waste (virtual elimination of waste to landfills) by 2021 have a significant impact on greenhouse gas emissions. The Climate Protection Plan considered three types of greenhouse gas emissions related to solid waste: 1. Fugitive emissions of landfill gas from the Palo Alto Landfill that are not captured and flared by the landfill gas control systems, thereby releasing methane into the atmosphere. These emissions are calendar year-based and are calculated using measured volumes of landfill gas flared and assuming a capture rate percentage for the control systems. This is considered Scope 1, anthropogenic emission and tracked in the GHG reporting protocol. 2. Life cycle emissions of landfill that are not captured and flared by landfill gas control systems, thereby releasing methane into the atmosphere. These Attachment D: Sustainability Initiatives of the City Page 18 of 25 emissions were calculated using an ICLEI’s Clean Air and Climate Protection (CACP) software. Inputs to the software are the total tons of Palo Alto solid waste landfilled and the amounts of paper products, food waste, plant debris, and wood/textiles in the landfilled waste. 3. Emissions from landfilling of recyclable materials, where failure to recycle the materials results in emissions from manufacturing using virgin materials that are greater than the emissions that would have resulted from recycling the materials. These emissions were calculated using the total tonnage of Palo Alto solid waste land-filled, the results of a 2006 Palo Alto Waste Composition Study, and US EPA emissions factors. This was not estimated this year, but also need further review. A total of 69,491 tons of Palo Alto solid waste was sent to landfills in 2005. The most recent landfill tonnage figures from the State of California indicate that the landfilled tonnage in 2011 totaled 32,434 tons, a decrease of 53 percent. The 2011 State of California annual report provides a Palo Alto per capita disposal rate, in pounds per person per day, which is equivalent to a diversion percentage of 78 percent. Palo Alto has exceeded its goal of 77 percent diversion by 2011. Preliminary numbers for 2012 suggest an increase from 2011, this is likely a result of an uptick in construction. A primary factor responsible overall long term decrease in landfilled waste from Palo Alto is the Zero Waste services that are included in the collection and processing contract with GreenWaste of Palo Alto. GreenWaste’s new services in July 2009 included: adding a program for collecting and composting commercial food waste and compostables, a shift to a single stream recycling program, and the processing of all construction and demolition debris boxes for and recycling. Other factors in the decrease include Palo Alto’s Construction and Demolition Debris Recycling and Reuse Ordinance, Zero Waste program outreach on recycling and waste prevention, and the economic downturn. The table D2 below provides a comparison between the solid waste-related greenhouse gas emissions estimates for 2005 and 2012. Table D2: Solid Waste Related GHG Emissions Emissions Source 2005 Emissions (MT) 2012 Emissions (MT) Difference (MT) Difference (percent) Landfill fugitive emissions during the year 6,811 4,3365 -2,475 -36% Life cycle fugitive emissions 24,823 12,7256 -12,098 -48% Landfilling recyclable materials 54,838 20,7027 -34,136 -62% 5 These emissions are related to methane generated in the landfill that was not captures and flared. Assume to be 33% of the collected landfill gas in accordance with LGOP protocol. 6 Is Scope 3 emission, included in Attachment C as community emission. Attachment D: Sustainability Initiatives of the City Page 19 of 25 The Palo Alto landfill fugitive emissions figure for 2010 was calculated using the volume of landfill gas captured by the landfill gas controls system and assuming a 75 percent capture rate. Life cycle fugitive emissions and landfilling of recyclable materials emissions for 2012 have been calculated using the ratio of waste landfilled in 2012 to waste landfilled in 2005. There are several factors that may introduce error into the estimates for life cycle fugitive and landfilling of recyclable materials. The 2005 estimates relied on a 2006 Waste Composition Study, and the method used for the 2012 estimate is based on a 2013 waste characterization study. However, it should be expected that the factors responsible for the decrease in Palo Alto’s landfilled waste tonnage, such as the Construction and Demolition program and the commercial compostables program, also affected the composition of the waste. Another factor to consider is that the 2005 baseline emissions for solid waste did not include calculating emissions from the PASCO collection fleet. The fuel used for GreenWaste collection vehicles includes CNG provided by the City at the MSC and purchased diesel fuel. The CNG fuel use is captured in another section. In 2012, GreenWaste used 165,817 gallons of diesel fuel in the collection vehicles. This report does not estimate greenhouse gas emissions from processing activities such as recycling recovery from garbage at the SMaRT Station in Sunnyvale, single stream recycling sorting at the GreenWaste MRF in San Jose, or the composting of the materials at Z-Best in Gilroy. Emissions from these activities are calculated by the host cities. VII. Water Quality Control Plant (WQCP) Operations Electricity and Natural Gas Use at the Plant The Palo Alto Regional Water Quality Control Plant (WQCP or plant) is the largest municipal energy consumer, accounting for approximately 80% electricity and natural gas used in City operations. Since 2005, the plant has implemented numerous steps to reduce its energy consumption and institutionalize sustainability policies in plant operations and maintenance, and when evaluating capital improvement projects. The figure below illustrates the natural gas usage pattern since 2005. The usage decline of more than 50% was due to the use of landfill gas for the plant incinerator since 2005 and the incinerator tuning in 2012. Lower natural gas usage has helped reduce the plant’s utility bill by an average of $200,000 per year compared to 2005. 7 Is Scope 3 emissions, included in Attachment C as community emission. Attachment D: Sustainability Initiatives of the City Page 20 of 25 *Year 2006 natural gas use is not depicted because the accuracy of the natural gas meter is in question for that year Figure D6: Natural Gas Usage at WQCP – Declined more than 50% since 2005 Outlined below is the description of natural gas usage related projects.  Use of landfill gas from the Palo Alto Landfill as a substitute for natural gas in the incinerator afterburner (2005).  Incinerator burner fine tuning (2011 and 2012): In 2011 and 2012, both incinerator 1 and 2 were fine tuned, resulting in lower natural gas consumption. It was found that the incinerators were operating rich, or burning more natural gas than needed. The air fuel mixture was adjusted and plant personnel were trained on the maintenance of the new set points. Significant amounts of natural gas are still used by the incinerator’s hearth burner, in addition to the natural gas that must augment the landfill gas in the afterburner. The electricity use has remained relatively flat since 2005 as illustrated in Figure D7 below. This is the net effect of reduced load due to various energy efficiency measures offset by increased load due to the installation of the more sustainable technology of UV based disinfection of treatment plant effluent. Attachment D: Sustainability Initiatives of the City Page 21 of 25 Figure D7: Electricity Usage at WQCP – Relatively Flat, but Greener Supplies WQCP’s electricity use declined substantially in 2009 as energy efficiency improvements were made to the activated sludge aeration basins and the trickling filter lift pumps. Electricity use increased in 2011 and 2012 due to increased recycled water pumping and the startup of the new ultraviolet light disinfection process that replaced chlorine disinfection in August 2010. A new aeration basin process control system was installed in 2012. This system is expected to further reduce energy consumption. Figure D8: Illustration of Components of Electricity Usage at WQCP in 2009 RWQCP Electricity Use Breakdown Aeration Basin Blowers, 23.4% Tower Lift Pumps, 15.5% RSP from (9/4/08), 10.9%Blend Tank Pumps, 4.3% Old RAS, 4.3% New RAS, 3.7% #4 Water, Injection, 3.4% Other, 7.2% Biofilter Fans, 6.4% DMF Lift Pumps, 6.4% LFG Compressor , 2.1% Incinerator Induction Fans, 6.4% Attachment D: Sustainability Initiatives of the City Page 22 of 25 Detailed description of the electricity consumption related projects are as follows:  Aeration Basins Optimization and Dome Replacement: As discussed above, the aeration basin blowers comprise almost 25% of the RWQCP’s total electricity use. The RWQCP began using fine bubble diffusers and high speed single stage centrifugal blowers over ten years ago. This technology is much more efficient than previous equipment. Beginning in late 2008, the RWQCP began tracking blower use more carefully to avoid adding excess air to the aeration basins beyond necessary dissolved oxygen level process set-points. In summer 2009, all of the 19,000 dome diffusers in the aeration basins were replaced with new diffusers. The old diffusers had been in service for over ten years, and laboratory tests showed they had lost much of their efficiency. Typical daily electricity use by the blowers has decreased from nearly 13,000 kWh per day in 2008 to an average of 9,500 kWh per day in late 2010. The aeration basins have been the subject of most of AECOM’s work under contract to the RWQCP, and a final report containing a number of recommendations was submitted by AECOM in December 2009. The RWQCP made further improvements to the blower control equipment and software in early 2012. These improvements were expected to optimize the blower control sequence and further reduce electricity use. Unfortunately, no significant reduction has been seen to date, however we are hopeful that we will see reductions in the future.  Trickling Filter Variable Frequency Drives: Trickling filter lift pumps (also called tower lift pumps) use about 15% of the plant’s electricity. In December 2009, RWQCP staff completed a new trickling filter lift pump control program. Additionally, two of the six lift pump controls were replaced with variable frequency drives (VFD). Use of the VFD controllers reduces the amount of water that is re- circulated and pumped over the trickling filters a second time. Although the improvements to this system are recent and more data needs to be collected, preliminary data appear to show that electricity use by the pumps has decreased by about 1,000 kWh/day; this equates to approximately 15% of the total trickling filter lift pump electricity use. The RWQCP is also considering options for making greater use of VFDs in the trickling filter lift pumps.  Estimated Incremental Impact of Flow-rate on RWQCP Electricity Demand: The impact of influent flow-rate on RWQCP electricity usage was assessed using daily electricity demand and influent flow data for January 2009 through May 2010. The results suggest that at flows less than 26 million gallons per day (MGD), the flow- rate is not the primary factor impacting electricity usage. A superior correlation between influent flow and electrical demand was found when flows exceeded 27 MGD. It is recommended that 436 kWh/MG be used to estimate the impact on electrical demands due to an incremental increase in flow-rate. For every 1 MGD increase in influent flow, one may expect an increased demand of 436 kWh per day. Attachment D: Sustainability Initiatives of the City Page 23 of 25 The RWQCP is to confirm the accuracy of this factor following the installation of automated aeration controllers. Investment in Technology for Sustainable Operations and Cost Effectiveness The plant has made numerous technology upgrades since 2005 which has enabled more sustainable and reliable operations. These upgrades have also resulted in operational cost reduction. A classic example of such a project is the use of landfill gas to supplement natural gas in the plant’s incinerators. The one million dollar project brought online in 2005 had a payback period of 5 years. It is estimated that the use of landfill gas continues to save the plant an average of $200,000 a year in natural gas consumption. Additionally, the plant’s operations become more sustainable as the once discarded landfill gas is utilized. In 2008, the plant upgraded office lighting by installing 576 energy efficient lamps, ballasts, and motion sensors. The $36,000 project had a simple payback of 8 years, reduced annual overall energy use by approximately 46,500 kWh, and reduced the annual plant greenhouse gas emissions by 19 metric tons. In 2011 and 2012, the plant fine-tuned the incinerator burners to limit the quantity of natural gas consumed. This $12,400 project had a simple payback of 21 days. It is estimated that this project has decreased the average annual natural gas consumption by approx. $200,000 and has reduced annual greenhouse gas emissions by 1136 MT. GHG Emission of the Plant The plant generates human activity related Scope 1 and Scope 2 emissions and biogenic GHG emissions. However, the GHG reporting protocols exclude biogenic emissions from being reported to The Climate Registry (TCR). Table D3 below are the comparative emissions from the plant. Table D4, excludes biogenic emission and normalizes for yearly hydroelectricity variability and PaloAltoGreen purchases. This shows 2012 GHG emissions declined by 59% from the 2005 levels. Table D3: Plant Emission Comparison between 2005 and 2012 (Not normalized for hydro electric supply and excludes Palo AltoGreen Purchases) 2005 2012 Scope 1 Biogenic Scope 2 Scope 1 Biogenic Scope 2 Wastewater Facilities 8,504 16,689 2,546 6,414 15,602 1,950 Percentage reduction -25% -7% 23% Table D4: Plant Emission Comparison between 2005 and 2012 (normalized for hydro electric supply and includes Palo AltoGreen Purchases) GHG Emissions (Scope 1 & 2) 2005 2012 Wastewater Facilities 11,269 4,659 Percentage Reduction 59% Attachment D: City Departmental Level Initiatives Page 24 of 25 VIII. Education, Motivation, and Community Participation The City plays a pivotal role in facilitating sustainable community practices. Staff collaborates with many organizations and groups throughout the community on many levels and on many projects to promote sustainable behaviors. Much of this has already been discussed. The new governance structure to further enhance sustainability effort will greatly aid future efforts. The City’s activities on community level education and motivation include:  Coordinating and facilitating Community Environmental Action Partnership (CEAP) efforts to work with a variety of different groups within Palo Alto to further sustainable business and living.  Encouraging and facilitating volunteer action by staff through the Green Team. These activities include: design thinking exercises at IDEO, hand-on practice to upgrade irrigation controls, the design and execution of a demonstration garden, implementing electric demand response program at City Hall building, “green bag” lunch series on sustainable topics  Encouraging community driven effort to explore participation in the ‘Cool Cities Challenge.’  Coordinating with the Palo Alto School District, Acterra, neighborhood associations and a variety of other agencies and groups to provide education on a variety of sustainability issues at events.  Conducting community level classes and workshops on:  Building a sustainable home: Leading tours and workshops through the EcoHome demonstration house.  Organizing water conservation workshops on such topics as alternatives to lawn, care of trees in a low water use garden, irrigation systems and more during the period around Earth Day in April and Fix a Leak Week in March, as a part of the Summer Workshop Series and in the fall.  Leading workshops on solar electric and solar water heating systems at least twice per year.  Providing electric efficiency and sustainable home practices throughout the year, but particularly during the Summer Workshop Series.  Attending many events at business sites to provide employees with information on CPAU’s efficiency programs and how to be sustainable.  Providing the bi-monthly OPower Home Energy Reports that give residents a comparison of their home’s energy use with those of 100 homes in the vicinity. These homes are of similar size, use the same type of heating and are occupied to provide a greater ability for residents to see how their energy use compares. The paper and online reports provide a Attachment D: City Departmental Level Initiatives Page 25 of 25 variety of tips and tools for ways to reduce electric and natural gas consumption and participate in the Utilities’ Department rebates and programs.  Delivering monthly newsletters to residents and businesses with a great variety of information on how to be more efficient and reduce GHG consumption.  Working with the school district on a variety of in-class workshops on energy and water saving. Providing the PAUSD with an annual $50,000 grant to enhance curricula on sustainability issues. Also, coordinating with the parent-sponsored group Zilowatt to develop a curricula coordinated with science class requirements to provide hands-on and relevant information on solar electric systems and efficiency.  Engaging with the business community through Facilities Managers’ Forum facilitated by Utilities about three times per year; The soon to be established Sustainability Executive Advisory Group to advise the City Manager will provide a another channel to seek input and support local businesses in their own efforts. Attachment E: Sustainability Policy and Organizational Structure Page 1 of 3 Attachment E: Sustainability Policy & Organizational Structure Shown below is the City’s Sustainability Policy approved by the Council in 2007. POLICY AND PROCEDURES 5-01/MGR First adopted in April, 2000 Revised June 18, 2007 CMR: 260:07 SUPPORT FOR SUSTAINABILITY POLICY STATEMENT It is the intent of the City of Palo Alto to be a sustainable community – one which meets its current needs without compromising the ability of future generations to meet their own needs. In adopting this policy, the City of Palo Alto accepts its responsibility, through its operations, programs and services to: Economy: Maintain a healthy, thriving and well-balanced economy comprising a blend of large and small business, which encourages the development of independent businesses and is resilient to the economic changes common to California’s economy Social Equity: Continuously improve the quality of life for all Palo Alto community members without adversely affecting others Environment: Enhance the quality of the air, water, land and other natural resources by minimizing human impacts on local, regional and global ecosystems through greater conservancy, reduced pollution, increased efficiency, and protection of native vegetation, fish, wildlife habitats and other ecosystems. In working toward these goals, the City will, when appropriate, align and partner with community groups, businesses, non-profits, and neighboring communities. NOTE: Questions and/or clarification of this policy should be directed to the City Manager’s Office. Attachment E: Sustainability Policy and Organizational Structure Page 2 of 3 Organizational Structure to Facilitate Sustainability Actions and to Achieve Goals The City Manager determined that the City’s many cross-departmental environmental sustainability activities requires a clear organizational structure to succeed. In preparation for the recruitment of the new position of Chief Sustainability Officer (CSO), roles and responsibilities for each part of the organization was established. Sustainability Board: Comprising Directors from key departments, will establish the vision and goals for the overall effort, approve the CSO’s work plan, and identify and approve resources to complete the work plan tasks. Sustainability Executive Advisory Group: To solicit input from outside the City, the City Manager will organize and lead such an ad hoc group, whose membership will include key executives from Palo Alto institutions, community leaders, and representatives from Stanford and large companies. The function of the group is to give advice and feedback to the City Manager, get input from the “real world”, forge and leverage international relationships/partnerships, build excitement, and model and motivate behavioral changes. Chief Sustainability Officer: The CSO will report to the City Manager and take direction from the Sustainability Board. A critical task of the CSO is to develop the long-term sustainability work plan and prioritize tasks for each fiscal year. The CSO will work with a larger group of individuals from many City departments to complete the tasks on the work plan. That larger group, the Sustainability Team, will organize itself into committees to implement the work plan as prioritized by the CSO. Participants in the Sustainability Team will be embedded in job descriptions and annual appraisals to ensure that team members understand that the sustainability work plan tasks are key City priorities. The CSO will also be responsible for community outreach on sustainability efforts and will act as the co-chair of community based Community Environmental Action Partnership (CEAP). Green Team: This is a longstanding individual employee initiative driven team with voluntary membership. The Green Team includes employees from many work groups and has historically been project-based with the goal to complete projects and a bias towards action. This group of engaged employees will be a valuable asset for the CSO to work with as they act as ambassadors to their own work groups and spread the word on sustainability throughout the City. Many Green Team members will also be on the Sustainability Team. The CSO will act as the liaison to the Green Team co-chairs and will convey information to and from the Sustainability Board. One of the key tasks for the CSO and the Sustainability Board, the Sustainability Team and the Green Team is to update the 2007 Climate Protection Plan. In addition, measuring performance with respect to the goals of the plan must be done on an annual basis. Attached is a line-diagram of the sustainability governance structure. Attachment E: Sustainability Policy and Organizational Structure Page 3 of 3 Attachment F: Transportation and Sustainable Land Use 1 Transportation and Sustainable Land Use Transportation and land use continues to represent the largest contributors to GHG emissions, with transportation related emissions accounting for more than 50% of Community emissions in 2012. The City’s policies are highly supportive of reducing vehicle use, particularly single-occupancy vehicle use, for commuting or other trips. The Comprehensive Plan, Zoning Ordinance, and Capital Improvements Program direct the City to develop projects and programs to facilitate pedestrian and transit-oriented development, safer and more convenient pedestrian and bicycle travel, particularly related to school routes, traffic calming for safety of drivers and other road users, and facilitation of greater use of Caltrain, buses, and shuttles. In general, every single-vehicle auto trip diverted to another mode reduces greenhouse gas emissions. The City has also encouraged and facilitated the use of low emission, including all-electric, vehicles. Staff is working on many programs to enable a reduction of such emissions, as described below. Short and Medium Term Goals from 2008-2012  Develop land use patterns that reduce travel-related emissions by supporting pedestrian, bicycle and transit use  Reduce and/or offset community travel-related emissions by 5%  Coordinate with Green Building efforts to ensure compatibility between built environment and sustainable land use initiatives.  Reduce emissions by an additional 10% by 2015  Increase Caltrain and other transit use by 25% by 2015  Provide annual reporting of transit and TDM effectiveness  Increase Electric Vehicle (EV) infrastructure How did we do on short and medium term actions? 1. Facilitate and enhance potential for mixed-use development. Several mixed use developments were approved through the entitlement process 2011-2013, or approved in previous years through planning entitlement process, but not yet completed the building permit process. Some of the mixed use projects of significance include:  2180 El Camino Real (College Terrace Center): Planned Community approved by Council with 30,000 square feet of office space, a small grocery store and other retail, and 8 below-market rate rental units. Construction anticipated in 2013.  3445 Alma Street (Alma Plaza): Planned Community including a grocery store and other retail space with 14 below-market rate rental housing units above the grocery store and 37 single-family homes immediately to the rear of the site. Attachment F: Transportation and Sustainable Land Use 2 Construction completed 2012 for commercial space and BMR housing units above. Market rate residential project construction commenced 2012.  1080 Channing Avenue (Edgewood Plaza): a grocery store, other retail space, and 10 single-family homes. Approved by Council; construction started in 2012.  102 University Circle: two stories of office and retail space, with four residential units on the third and fourth floors. Construction completed and occupied by 2011.  A handful of smaller projects on El Camino Real include 2-3 stories of office/commercial space with one or two residential units above (4073 El Camino Real, 1845 El Camino Real) 2. Zone for Mixed Use and Higher Density Around Transit Stations The City has adopted Pedestrian-Transit Oriented Development (PTOD) zoning near the California Avenue station. Existing zoning allows for mixed use and higher density around the downtown transit station, though parking remains an obstacle to successful projects. Two mixed use PTOD projects noted above have been approved (and one constructed) in the California Avenue PTOD area. In 2012, the 195 Page Mill Road/2865 Park Boulevard mixed use project was approved by Council. The 102 University Circle project provides a mix of uses downtown, and high density housing near the downtown Caltrain station was approved (and construction is nearing completion) for 50 affordable housing units at 801 Alma Street. Another high density affordable housing project was approved and constructed at 488 W. Charleston Road, which is proximate to a future Bus Rapid Transit stop on El Camino Real. Finally, the Lytton Gateway project, which contains 50,000 square feet of office and retail space, is currently under construction directly across the street from the train station. 3. Reduce Parking Needs for New Development Several significant projects employed reductions in parking spaces allowed by the City’s zoning for projects that are proximate to transit, provide effective transportation demand management (TDM) measures, exhibit a mix of residential and commercial uses, or provide for affordable housing. Most of the projects noted above have utilized of one or more of those parking reductions. Staff has worked to increase use of existing garages through the City’s parking permit program, from 60% use to 80% use, and is working with a Downtown Parking Study Group to consider potential residential permit parking strategies. Staff is also evaluating the use of attendant parking and/or “stackers” to facilitate increased parking lot or garage capacity to minimize the space devoted to parking. Several projects have been approved for use of these stackers or “lifts” in the downtown, and two more projects are in process proposing the use of these lifts that can handle up to four parking spaces, where one space was previously feasible. Attachment F: Transportation and Sustainable Land Use 3 4. Require Transportation Demand Management (TDM) Programs Transportation Demand Management (TDM) programs have been proposed and approved in recent years for several projects, including 901 San Antonio, 2180 El Camino Real, 1601 California Avenue (Facebook, since departed), 3401 Hillview (VMWare) and the pending 355 Alma Street (Lytton Gateway). TDM programs have included such measures as transit passes (such as Caltrain “Go-Pass”) for building occupants, Zip Cars or similar rentals, and/or vanpool or carpool priority, etc. TDM programs are required whenever parking reductions are requested or where required as environmental mitigation. The programs typically specify performance objectives, and monitoring information is provided to the City at 2 years and 5 years after project occupancy. Recently, the Council has authorized staff to move forward with a City Hall TDM program, to reduce the number of employees that are driving to work. The overall goal is to “free-up” 50-100 spaces in the City Hall garage through this program by providing incentives for employees to walk, bike or take transit to work. 5. Develop Monitoring Programs for Transit Use and TDM Effectiveness The City is completing its database regarding TDM programs in order to gain better information about the types of programs used and their effectiveness, specifically the degree to which drive-alone travel is reduced. Baseline information is typically required of an applicant, and monitoring reports are to be submitted at regular intervals. To date, the projects with adopted programs either have not existed long enough to assess effectiveness or have not been constructed so measures are not yet implemented. One exception was the Facebook site (Facebook as since moved), where ride-alone travel by employees was reduced to about 60% through a variety of company-sponsored bus shuttles, provision of GoPasses to staff, bike sharing, and TDM information measures. 6. Citywide Transportation Survey The Transportation Division recently released a first of its kind, city-wide transportation survey. The goal of this survey is to determine the mode share of various forms of transportation. This survey has been sent out to those who live, work or visits the City of Palo Alto. Based on information gained from this survey, the City will be able to better plan for transportation improvements, and create the programs and incentives necessary to support alternative forms of transportation. City staff will also be taking this survey, in order to develop a City Hall TDM program as identified above. 7. Downtown Studies: The City has recently embarked on the first phase Downtown Development Cap Study. One primary aspect of this study is quantifying the impact of automobile traffic has on the Downtown area, and projecting conditions into the future. One of the primary goals of the second phase of this study, will to be to create policies which help to reduce automobile traffic in the Downtown area by encouraging Attachment F: Transportation and Sustainable Land Use 4 transit use and other alternative forms of transportation. 8. Develop Comprehensive Plan Programs to Support Increased Density near Transit. The City’s Comprehensive Plan currently identifies areas around the City’s two transit station as appropriate for higher density and mixed use development. A Comprehensive Plan update will look at additional land use and transportation implementation strategies for increased housing density. The California Avenue- Ventura/Fry’s Concept Plan is underway and will address potential density options in that pedestrian and transit-oriented area. The City’s Housing Element is in the final stages of State level review, and focuses on housing options near transit stations or corridors. In addition, staff has been engaged in the Sustainable Community Strategy with the Association of Bay Area Government (ABAG), which focuses on developing linking land use and transit policy consistent with the goals of SB375. 9. Develop Plans for Transportation Improvements around California Avenue Caltrain Station The City has developed a concept for streetscape improvements along California Avenue to provide for a “complete street” approach benefiting all modes of travel, enhancing pedestrian and bicycle safety, and enhancing the aesthetics of the streetscape. Plans are nearing the final design stages and work is expected to begin in Fall 2013. The City’s Bicycle and Pedestrian Transportation Plan designates Park Blvd., serving as a key connector to California Avenue and the train station, as a “bicycle boulevard” to be developed over the next two years with modifications to enhance bicycle use. The California Avenue-Ventura/Fry’s area concept plan will also address land use, transportation improvements for the surrounding area, though their implementation timeframe is uncertain. 10. Bicycle and Pedestrian Plan and Infrastructure a) Bicycle Plan and Programs: The City of Palo Alto is currently a Gold Level Bicycle Friendly City, and bicycle use comprises an estimated 7% of commute trips to and from the city (2009-2011 American Community Survey 3-Year Average Estimate, United States Census Bureau. The City Council is scheduled to adopt the updated Bicycle and Pedestrian Transportation Plan. This Plan is intended to enhance the use of bicycles for commuter, convenience, and recreational uses, with a goal of becoming a “Platinum” Bicycle Friendly Community.. The Plan objectives and other anticipated programs include:  Increasing bike boulevard mileage from 18 to 22 miles.  Increasing bike lane mileage from 38 miles to 41 miles  Increasing Class I trails (separated bikeways) from 14 miles to 21 miles of facilities  Initiating a bike share program, beginning in 2013, to provide 100 bikes distributed at five locations in Palo Alto; and Attachment F: Transportation and Sustainable Land Use 5  Doubling the number of bike parking “corrals” from the existing six downtown to approximately 12 in downtown and California Avenue areas in the coming two years. b) Safe Routes to School: On March 1, 2012, the City initiated an expansion of its highly successful Safe Routes to School program, thanks to a two year grant from the Vehicle Emission Reductions Based at Schools (VERBS) program of the Santa Clara County Valley Transportation Authority. This grant provides funding for a broad range of efforts to reduce auto congestion and increase greener school commute choices, including comprehensive Walk and Roll to School maps for every PAUSD school, updated and expanded bicycle safety education for students and parents, and school-level promotions of walking, biking, taking the bus/shuttle, and carpooling to/from school. Since 2005, there has been a dramatic growth in cycling at PAUSD secondary schools, a very different picture than in virtually any other city in the state or nation. As shown in the table below, nearly 40% of PAUSD high school students and 55% of middle school students were regularly biking to school in fall 2012. This growth in biking has outpaced the increase in student population by more than 20% at both levels compared to the baseline year for the Climate Protection Plan: PAUSD High Schools Student population Bikes % Biking Fall 2005 3450 580 16.8% Fall 2012 3790 1510 39.8% Increase 2005-12 +340 +930 +22.9 % PAUSD Middle Schools Student population Bikes % Biking Fall 2005 2420 830 34.5% Fall 2012 270 1501 55.4% Increase 2005-12 +290 +667 +20.9% Between April 2012 and March 2013, VERBS funded initiatives included the developing of Walk and Roll maps at 10 out of 17 PAUSD schools. These maps show suggested walking and biking routes to school, based on community input and updating safety signage and striping on these routes. This process also led to the identification of a list of recommended longer term improvements on school commute routes, to be implemented as funding becomes available. Other initiatives include expanded promotion of green ways to get to school in both fall and spring, and an online “Schoolpool” program now being piloted at four schools, which aims to reduce congestion near schools by encouraging more parents to carpool to school, or form bikepools or walkpools, thereby reducing the number of solo family vehicle trips to school each day. Attachment F: Transportation and Sustainable Land Use 6 In FY 2014, the VERBS grant will also fund the installation of automated bicycle and pedestrian counters near each school, which will allow the City to monitor seasonal trends in school commute choices. The program evaluation incorporated into the grant will include GHG reduction calculations for Palo Alto's Safe Routes to School program, based on a regional methodology now being developed by the Metropolitan Transportation Commission. 11. Transit Use and Enhancements The City sponsors and jointly funds the Crosstown Shuttle and Embarcadero Shuttle, providing transit service to students, seniors and others in areas not served by other public transportation. The number of riders on the City’s shuttles has decreased somewhat (from 137,825 riders in FY2011 to 118,455 riders in FY2012) over the past year, due to cuts in funding that resulted in the Crosstown shuttle being served on an hourly basis, rather than twice per hour. Use of Caltrain, however, has increased substantially over the past year and over the past five years, with ridership increasing from 4,132 boardings in 2007 to 4,796 boardings in 2010 to 5,501 boardings in 2011 (33% increase in 4 years and 15% increase in the past year. The ridership increase exceeds the Climate Protection Plan goal of 25% increase by 2015. 12. Electric Vehicle Infrastructure The City has taken steps to facilitate the implementation of infrastructure, particularly charging stations, for electric vehicles (EVs). In the past year, five charging stations have been installed in City garages. Right charging stations have been approved in conjunction with development proposals. This includes 4 charging stations at the Lytton Gateway project and 2 at the Edgewood Plaza project. In addition, the City is planning for 6 additional chargers at City facilities as follows:  City Hall Garage (1)  Cowper-Webster Garage (1)  Bryant St Garage (1)  Cal Avenue – West Garage (2)  Cal Avenue – East Garage (1) 13. Traffic Calming Projects and Programs The City has recently embarked on the outreach, design or construction phases of several traffic calming projects and programs. The goal of these projects are to continue to facilitate efficient automobile traffic, while making the roads safer for bicycles and pedestrians as well. The areas where these improvements have recently been focused are Charleston/Arastradero, College Terrace, Greer and Louis Roads and California Avenue. Attachment F: Transportation and Sustainable Land Use 7 Long Term Goals (2012-2020) • Reduce emissions by an additional 10% by 2020 • Increase Caltrain and other transit use by an additional 50% by 2020 What is planned for Long Term Actions? 1. Evaluate Pedestrian and Transit Oriented Development Zoning Intensity, Including Along El Camino Real. The City’s Comprehensive Plan update will include a recommendation for study of the south El Camino Real Corridor, and the Housing Element will focus on new housing development and offer recommendations for increased density near transit stations and along El Camino Real. Staff also expects recommendations about appropriate locations for some increase in height to accommodate housing, and for parking solutions for greater intensity in development downtown. 2. Develop a Vision for the Intermodal Transit Center & Surrounding Area. The City will soon embark on a community input and planning process reacted to the Palo Alto Intermodal Transit Center site and surrounding area to ensure a) connectivity between downtown and the Stanford Shopping Center and beyond, b) improve transit flow through the Transit Center and to University Avenue and El Camino Real, and c) create a diversity of land uses on the site. The project will soon be entering in the community input and planning phase. 3. Implement Grand Boulevard Improvement Strategies for El Camino Real In 2011, the City of Palo Alto implemented an initial Grand Boulevard Initiative project at the Stanford Avenue and El Camino Real intersection to improve the aesthetics of the intersection and to enhance safety for bicyclists and pedestrians, many of whom are students crossing to and from school. The California Avenue Streetscape Improvements Project will also provide an upgraded link from El Camino to the Caltrain station. The City staff is coordinating with adjacent cities in a study of the boulevard and necessary infrastructure to serve future development. The City’s Rail Corridor Study draft suggests improved connectivity at several points across El Camino Real and identifies the El Camino Way area as a potential neighborhood center node for future detailed analysis. 4. California Environmental Quality Act (CEQA): The City’s plans and programs for El Camino Real, the Rail Corridor, Downtown, California Avenue, and the Bicycle and Pedestrian Transportation Plan will help to gain certification of the City’s Climate Protection Plan in order to streamline preparation of CEQA documents with respect to cumulative Green House Gases. Infill development around transit as part of adopted plans will also help minimize traffic and air quality analyses otherwise needed for CEQA compliance. Attachment F: Transportation and Sustainable Land Use 8 Transportation Related Community Emissions - Methodology & Summary of Findings The City commissioned a short study by consulting firm Fehr and Peer to provide an assessment of transportation related community emissions. This high level assessment used the Santa Clara Valley Transportation Authority (VTA) regional Travel Demand Forecasting (TDF) model for developing long-range citywide daily vehicle miles traveled (VMT) estimates for streets and highways in the greater Palo Alto area. The VTA TDF model includes a 2005 base year, and a 2035 future year (with 5 year incremental planning years) that reflects future planned growth in San Francisco Bay Area and nearby counties. The model assigns traffic volumes for a typical weekday during the morning (AM) peak period, midday, evening (PM) peak period, and late night, as well as the morning one-hour peak and evening one-hour peak. The regional transportation network coverage (roadway and transit network) captures regional travel patterns and behavior to be accounted for in the focused study area of Palo Alto, which is more important with the recent legislative requirements associated with GHG quantification and impacts. VTA staff provided daily VMT estimates for the planning years of 2005, 2010, and 2015. A review of the traffic analysis zones (TAZs) for the City of Palo Alto was undertaken to determine which TAZs should be included in the calculation of VMT and CO2 emissions. TAZs within the City’s boundary were included along with some TAZs within the Stanford University Boundary where the City of Palo Alto controls land use decisions (i.e. Stanford Shopping Center and Stanford Medical Center). The Palo Alto specific VMT estimates were primarily a function of service population defined by residents plus employees within City limit. In the absence of reliable employment number, a constant 90,000 was used for the assessment. The assessment did not consider Palo Alto specific data related to bicycle use, alternate transportation modes, or vehicles profiles. Attachment F: Transportation and Sustainable Land Use 9 Based on the above described assumptions and methodology, the study found:  VMT per service population decrease from 1990 to 2012  CO2 emissions per service population decrease from 1990 to 2005 and 2012  The combination of reduced VMT per service population, improved vehicle technology, and improved fuel efficiency are all key factors in the decreased CO2 emissions per mile.  The Community CO2 emissions reduced by 13.6% from 371,870 MT in 2005 to 321,200 MT in 2012. It also found 2005 emissions were below those of 1990 levels. Role of Electric Vehicles in Reducing GHG Emissions With a Carbon Neutral electric supply, Electric Vehicles(EV) provide an avenue for the Palo Alto Community to reduce its carbon footprint with vehicular fuel switching. The City took a first step in adopting an Electric Vehicle Infrastructure Policy in December 2011. The policy encouraged night time EV charging and passing on the lower cost of electric supply through lower time-of-use electric rates to EV owners who charge at night. The policy also called for the City to facilitate community adoption of this technology. Responding to community interest, City is the process of exploring a pilot program designed to facilitate home owners in residential neighborhoods, with adequate street parking, to install, own, and maintain EV chargers or 240 volt outlet on the publicly owned planting strip across their homes. Staff is also working with Xatori, a local start-up company, that has the technology to enroll EV owners and provides them helpful information related to their vehicle charging patterns and provide useful information to the electric utility. Palo Alto Utilities plans to use this information to inform participating EV owners when ‘Demand Response’ events occur and to urge them not to charge their cars when the electrical grid is under distress on hot summer days. City is also working with SAP Labs and other industry partners to make useful information available to potential EV owners at EV dealerships via a mobile application to enhance customer experience. With vehicular emissions making up 54% of community emissions in 2012, EVs are likely to play a large role in further reducing community GHG emissions.