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HomeMy WebLinkAboutStaff Report 2509-5167CITY OF PALO ALTO CITY COUNCIL Monday, September 08, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     6.SUPPLEMENTAL INFORMATION: Approve Amendment #1 of the Memorandum of Agreement (MOA) with the California Alternate Energy and Advanced Transportation Financing Authority (CAEATFA), to Extend the Term of the Agreement from Two Years to Five Years, to Continue to Enable the Residents of Palo Alto to Participate in the GoGreen Home Energy Financing Program. Item No. 6. Page 1 of 2 City Council Supplemental Report From: Alan Kurotori, Director Utilities Meeting Date: September 8, 2025 Item Number: 6 Report #:2509-5167 TITLE SUPPLEMENTAL INFORMATION: Approve Amendment #1 of the Memorandum of Agreement (MOA) with the California Alternate Energy and Advanced Transportation Financing Authority (CAEATFA), to Extend the Term of the Agreement from Two Years to Five Years, to Continue to Enable the Residents of Palo Alto to Participate in the GoGreen Home Energy Financing Program. ANALYSIS As referenced in the original report, the Utilities Advisory Commission (UAC) reviewed this item at its September 3, 2025 meeting; this supplemental memo summarizes their review. The Commission approved the motion to recommend to Council the extension of the MOA by three additional years, voting 5-0, with 2 members absent. UAC inquired whether contractors found the process of receiving payment at the end of projects to be burdensome. Staff acknowledged that some concerns had been raised, however, over 100 participating contractors within Santa Clara County have agreed to the payment terms of the GoGreen Program. Mayor Lauing, serving as the Council Liaison to the UAC, asked whether continuation of the program was warranted given that only one customer had participated over the past two years. Staff anticipates greater potential participation with the 2025 launch of the whole-home electrification customer program as a mechanism to fund higher cost home electrification projects. Staff emphasized that it would be premature to discontinue the program at this time. Staff also noted that the CAEATFA loan guarantee program had a lower startup administration cost than initially projected. This program provides residents with a financing option that is offered by PG&E and other electric utilities. Furthermore, the program is funded with restricted Natural Gas Cap-and-Trade revenues, and not through ratepayer revenues. APPROVED BY: Alan Kurotori, Director Utilities Staff: Jonathan Absendschein, Assistant Director, Climate Action, Publics Works Staff: Shiva Swaminathan, Senior Resource Planner Item No. 6. Page 2 of 2