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HomeMy WebLinkAboutStaff Report 3714 City of Palo Alto (ID # 3714) City Council Staff Report Report Type: Consent Calendar Meeting Date: 5/6/2013 City of Palo Alto Page 1 Summary Title: City Manager Authorization to Report Greenhouse Gases Title: Adoption of a Resolution Confirming that the City Manager is Authorized to Report Greenhouse Gases Generated in Municipal and Utility Operations to Federal and State Agencies and to Participate in Cap and Trade Programs From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council approve the attached resolution confirming that the City Manager is authorized as required by state and federal regulations to report greenhouse gases generated in municipal and utility operations to Federal and State agencies and to participate in cap-and-trade programs. Executive Summary The City of Palo Alto currently reports greenhouse gas (GHG) emissions from various municipal and utility operations to the Federal Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), and also participates in the CARB’s GHG cap-and-trade program. Both agencies require that staff members reporting such data or participating in the cap and trade program be explicitly authorized to report the data. The City Manager and Utility Director are authorized by the Municipal Code to generate reports to Federal and State agencies, but since the relevant code section does not specifically mention the EPA and CARB regulations, this resolution will ensure that there is no question of staff’s authorization to perform the duties required under these regulations. Background The EPA and CARB both require the City to report GHG emissions from the activities of its natural gas utility, electric utility, and landfill. The CARB uses the natural gas and electric utility reports to establish the City’s compliance requirement under the GHG cap-and-trade program. The City’s electric utility is allocated GHG emission allowances, which it is required to sell in the CARB auctions. Staff expects the CARB to establish the parameters for the City’s gas utility to participate in the cap-and-trade program by 2015. City of Palo Alto Page 2 Discussion The Palo Alto Municipal Code (PAMC) Section 2.08.200(a)(4) states that one of the duties of the Director of Utilities is “to generate appropriate reports as may be required by county, state and federal agencies or by law.” Staff members reporting GHG emissions to the EPA or the CARB are required to certify the following:  That they were selected to do such reporting by an agreement binding on the agency; and  That they are authorized to perform such reporting duties, and that their actions in that capacity will be binding on the agency. By approving this resolution, the Council will confirm that the City Charter and the PAMC serves as that binding agreement and will confirm the authorization to perform the required duties. Staff members auctioning allowances under CARB’s cap-and-trade program are required to make similar representations, and the attached resolution will confirm that they have the required authorization to do so if the City Manager delegates that authority to them. The resolution confirms the City Manager’s authority to make other reports or engage in other cap and trade activities under any future regulations. Staff is not aware of any such programs currently under development, but in the event one is developed, the City Manager will have proper authorization to report or act under those programs. Resource Impact Adoption of the resolution does not impact Utilities operating expenses. Policy Implications Adoption of the resolution does not change City policy. It ensures that the City can conduct business activities required by State and Federal law. Environmental Review Adoption of the proposed resolution does not constitute a project for the purposes of the California Environmental Quality Act. Attachments:  Attachment A: Resolution Authorizing the City Manager to Report Greenhouse Gases to State and Federal Agencies and to Participate in Cap and Trade Programs (PDF) *NOT YET APPROVED* 130418 dm 015009 Resolution____ Resolution of the Council of the City of Palo Alto Confirming that the City Manager is Authorized to Report Greenhouse Gases Generated in Municipal and Utility Operations to Federal and State Agencies and to Participate in Cap and Trade Programs R E C I T A L S A. The City of Palo Alto’s municipal and utility operations generate greenhouse gases in varying amounts. Some of these operations, such as the electric utility, gas utility, and landfill, are currently subject to Federal regulations mandating reporting of greenhouse gases, State regulations mandating such reporting, State regulations requiring participation in the State’s cap and trade program, or some combination of these regulations. Other regulations may apply to these operations or other municipal or utility operations in the future. B. Some of these regulations require that the staff member completing the greenhouse gas reports or taking actions under the cap and trade program certify that he or she has the necessary authority to make such reports and that the City will be bound by his or her representations and actions with respect to this program. The Council of the City of Palo Alto does resolve as follows: SECTION 1. The Council confirms that the City Manager or his or her designee is authorized under the City Charter and Palo Alto Municipal Code to perform on behalf of the City of Palo Alto all duties and responsibilities required by Title 40, Part 98 of the Code of Federal Regulations (Mandatory Greenhouse Gas Reporting), Title 17, Article 5, Sections 95800 through 96022 (California Cap on Greenhouse Gas Emissions and Market-based Compliance Mechanisms), and Sections 95100 through 95158 (Regulation for the Mandatory Reporting of Greenhouse Gases) of the California Code of Regulations, or any other regulation related to the reporting of greenhouse gases or the tracking and disposition of allowances, offsets, or other instruments as part of programs related to the tracking or reduction of greenhouse gases. // // // // // // *NOT YET APPROVED* 130418 dm 015009 2 SECTION 2. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act and no environmental assessment is required. INTRODUCED AND PASSED: AYES: NOES: ABSENTIONS: ABSENT: ATTEST: APPROVED: _____________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: _____________________________ City Manager _____________________________ Senior Deputy Asst. City Attorney _____________________________ ____________________________ Director of Utilities Director of Administrative Services