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HomeMy WebLinkAboutStaff Report 2512-5688 and 2601-5858CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, February 02, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     8.Review the 2024 Greenhouse Gas Inventory and S/CAP Key Performance Indicators Annual Progress Report, and Approve the 2026-2027 S/CAP Work Plan and Receive Six S/CAP Studies Recommended by the Climate Action and Sustainability Committee; CEQA Status: Review GHG Inventory and Key Performance Indicators: Not a Project; Potential Environmental Impacts of the S/CAP Work Plan were Studied in the June 5, 2023 S/CAP Addendum to the 2017-2031 Comprehensive Plan EIR; this Project is also Exempt Pursuant to CEQA Guidelines Section 15183 Supplemental Report added City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: February 2, 2026 Report #:2512-5688 TITLE Review the 2024 Greenhouse Gas Inventory and S/CAP Key Performance Indicators Annual Progress Report, and Approve the 2026-2027 S/CAP Work Plan and Receive Six S/CAP Studies Recommended by the Climate Action and Sustainability Committee; CEQA Status: Review GHG Inventory and Key Performance Indicators: Not a Project; Potential Environmental Impacts of the S/CAP Work Plan were Studied in the June 5, 2023 S/CAP Addendum to the 2017-2031 Comprehensive Plan EIR; this Project is also Exempt Pursuant to CEQA Guidelines Section 15183 RECOMMENDATION Staff recommends that the City Council: 1. Review the 2024 Citywide and Municipal Greenhouse Gas Emissions Inventories; and 2. Review the Sustainability and Climate Action Plan (S/CAP) Key Performance Indicators Annual Progress Report for calendar year 2024. The Climate Action and Sustainability Committee and staff recommend that the City Council: 3. Approve the 2026-2027 S/CAP Work Plan; and 4. Receive the following studies: a. S/CAP Funding and Financing Study; b. S/CAP Funding Source Survey; c. EV Charger Needs Assessment; and d. Single-family, Multi-family, and Non-Residential Building Sector Studies. EXECUTIVE SUMMARY This staff report presents the Palo Alto Citywide and Municipal GHG Emissions Inventories for calendar year 2024, a historical comparison of Citywide GHG Inventories, the Sustainability and Climate Action Plan (S/CAP) Key Performance Indicators (KPI) Annual Progress Report for calendar year 2024, and the Climate Action and Sustainability Committee recommended priorities for the 2026-2027 Sustainability and Climate Action Plan Work Plan. In addition, the Climate Action and Sustainability Committee is recommending the City Council’s receipt of six studies that were attached to and summarized in the staff report for the December 13, 2025 Climate Action and Sustainability Committee (CASC) workshop on electrification funding and financing strategies. These studies document the work done to develop models and data for City staff and policy makers to use to support strategic decision- making about community-scale electrification funding, financing, and program design. They also include insights about the financial dynamics of community-scale electrification based on three illustrative scenarios analyzed. One key insight surfaced is that if the City were to rely on up- front incentives available to all community members as a way to achieve its goals, it would result in City expenses that exceed currently available resources for climate action. This points to the need for new strategies and additional modeling. Staff intends to use these tools and data throughout 2026 and 2027 to support strategic planning efforts under 2026-2027 S/CAP Work Plan item C13 (Develop Funding and Financing Strategies for Consideration) and to model different strategies and scenarios for community-wide electrification. BACKGROUND In June 2023, City Council adopted the 2022 Sustainability and Climate Action Plan (S/CAP),2 certified the Comprehensive Plan Environmental Impact Report Addendum: Update to the Sustainability and Climate Action Plan,3 and accepted the 2023-2025 S/CAP Work Plan.4 The S/CAP aligns with several goals of the 2030 Comprehensive Plan Implementation plan, as well as the City Council 2025 Priority Area ”Climate Action and Adaptation, & Natural Environment Protection”.5,6 Both the Palo Alto Citywide and Municipal GHG Emissions Inventories calculate emissions for calendar year 2024. As a result of various City-led initiatives, programs, and activities focused on sustainability and climate action, by the end of 2024 Palo Alto reduced total citywide greenhouse gas (GHG) emissions 50.2% from the 1990 baseline, despite a population increase of 22% during that same time period. Due to changes in methodology, it is not possible to do an equivalent comparison of the 2024 Municipal GHG Inventory with previous inventories. However, by the end of 2024 the City reduced total municipal GHG emissions roughly 64% from the 2005 baseline. Due to delays associated with the COVID-19 pandemic, the 2019 GHG inventory was not completed until 2021. Previous GHG inventories were all completed by the following calendar year. Staff and external experts worked to complete both the 2023 and 2024 GHG inventories in 2025 to provide more timely reporting on the City’s progress towards the 80 x 30 and carbon neutrality goals. While this report focuses on the 2024 GHG inventory, new data from the 2023 GHG inventory is also included in figures, tables, and attachments. In addition, staff and external experts updated the 1990 Citywide GHG inventory to align with the methodology used for the 2019 through 2024 Citywide GHG inventories. This allows for a more equivalent comparison between the inventories. The City has reached the end of its 2023-2025 S/CAP work planning period. The 2023-2025 S/CAP Work Plan guided S/CAP Implementation with 77 work items, of which 27 focused on sustainability and 50 on climate action. Staff developed a proposed 2026-2027 S/CAP Work Plan to continue progress towards achieving the S/CAP goals. Development of the 2026-2027 S/CAP Work Plan aligns with one of 2 2022 Sustainability and Climate Action Plan; https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/2022-scap-report_final.pdf 3 Comprehensive Plan Environmental Impact Report Addendum: Update to the Sustainability and Climate Action Plan, 2023; https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas- minutes/ city-council-agendas-minutes/2023/2023comprehensive-plan-environmental-impact-report-addendum- update- to-the-scap.pdf 4 2023-2025 S/CAP Workplan, 2023; https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/2023-2025-scap-work- plan_final.pdf 5 2030 Comprehensive Plan; https://www.cityofpaloalto.org/Departments/Planning-Development- Services/Housing-Policies-Projects/2030-Comprehensive-Plan 6 City Council, May 5, 2025; Agenda Item #8; SR #2504-4466, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83379&dbid=0&repo=PaloAlto the four Council Priorities for CY 2025: Climate Action and Adaptation, and Natural Environment Protection, and fulfills Council Priority Objective CA 23 - Develop and obtain Council approval for strategies and a 2026/2027 work plan for the next phase of S/CAP implementation of climate and sustainability goals. At the January 9, 2026 Climate Action and Sustainability Committee meeting, the Committee received an update on the status of the 2023-2025 S/CAP Work Plan and discussed the recommended priorities for the 2026-2027 S/CAP Work Plan.11 The Committee voted unanimously, inclusive of staff and committee consensus modifications, to recommend that the City Council approve the work plan. Council recognized the importance of developing a long-term financial strategy as part of S/CAP implementation in the 2023–2025 Work Plan, which included initiation of an S/CAP Funding Study to explore potential funding and financing sources, as well as several complementary studies (an EV Charger Needs Assessment, studies of electrification opportunities in multi- family and non-residential buildings, and a Funding Source Survey). The City issued a Request for Proposals for these studies in August 2023 and retained a consultant team - Willdan, E3 (a Willdan company), and Rincon - to complete them.12 This model and its input studies – including assessments of gas equipment in single-family, multi- family, and non-residential buildings, an Electric Vehicle (EV) charger needs assessment, and a survey of funding sources – provide data to evaluate different electrification rollout scenarios and their financial implications. ANALYSIS The City is committed to a sustainable future. The City owns, operates, and maintains a full- service utilities portfolio that provides electric, natural gas, fiber, water, refuse, and wastewater services to residents and businesses in Palo Alto. Palo Alto’s continued leadership in advancing sustainability commitments has succeeded mainly because of the continued collaboration of community stakeholders, City departments, and the leadership of the City Council. This report presents a 2026-2027 S/CAP Work Plan to continue the City’s progress on sustainability and emissions reduction, a 2024 update to the Citywide and Municipal GHG Emissions Inventories showing progress to-date, and asks the City Council to receive six reports related to the S/CAP Funding Study that provide data and a modeling framework that will be used for policy discussions on funding community-wide electrification through 2026 and 2027. Starting with the 2019 Citywide GHG Emissions Inventory, the City followed the calculation and reporting standards outlined in the Global Protocol for Community-Scale GHG Emissions Inventories (GPC). However, the 1990 Citywide GHG Emissions Inventory followed a different methodology, and did not include several emissions sources, including: Airport Emissions, Off- Road Vehicles and Equipment, Caltrain Commuter Rail, Composting, Palo Alto Landfill Gas Flaring, and Wastewater Biosolid Treatment. Staff and external experts corrected this error and the 1990 Citywide GHG Emissions Inventory now follows the same GPC Protocol used in the 11 Climate Action and Sustainability Committee, January 9, 2026; Agenda Item 1; SR #2507-5027, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18309 12 City Council, January 16, 2024; Agenda Item #4; SR #2308--1939, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82633&dbid=0&repo=PaloAlto 2019 through 2024 Citywide GHG Emissions Inventories. Historical comparisons are now more equivalent and provide a clearer picture of the City’s sustainability and climate action progress. 2e) from the residential, commercial, industrial, transportation, waste, water, and municipal sectors. In comparison to the 1990 base year emissions (which have increased to 798,868 MT from the previously calculated 780,119 MT due to corrections in methodology and additions of excluded emissions sources), these emissions represent a 50.2% decrease in total community emissions, despite a population increase of 22% during that same period. Emissions in 2024 equated to 5.9 MT per capita. The California Air Resource Board’s 2017 Scoping Plan Update recommends a goal for local governments of 6 MT CO2e per capita by 2030 and 2 MT CO2e per capita by 2050.15 In order to achieve 80 x 30, Citywide GHG Emissions need to be at 160,000 MT CO2e (corrected from the previous target of 156,024 MT CO2e). 15 California Air Resources Board 2022 Scoping Plan Appendix D Local Actions, November 2022; https://ww2.arb.ca.gov/sites/default/files/2022-11/2022-sp-appendix-d-local-actions.pdf Figure 1: 2024 Palo Alto Citywide Greenhouse Gas Emissions by Sector As shown in Figure 2, total GHG emissions steadily decreased between 1990 and 2021. However, emissions increased between 2021 and 2022 and slightly increased between 2022 and 2023. The main driver of the increase in 2022 was On-Road Transportation, in part due to the shift away from pandemic-level (reduced) driving frequency, returning to the office after working from home, and economic recovery. These effects likely continued into 2023 as employers continued to change hybrid work policies and economic and travel activities continued to shift. GHG emissions from Transportation and Mobile Sources are estimated to have increased slightly (by less than 1%) between 2023 and 2024 but remain 27% lower than 1990 Transportation and Mobile Sources emissions. Within Transportation and Mobile Sources, On- Road Transportation increased slightly (less than half a percent). However, this estimate is preliminary due to lack of data. Vehicle miles traveled (VMT) data for 2024 were not yet available when the 2024 GHG inventory was prepared. City staff and external experts calculated a preliminary estimate of 2024 VMT by scaling 2023 per capita VMT based on 2024 population for passenger vehicles and service population for commercial vehicles and buses. This estimate reflects demographic growth and may not capture actual VMT trends. The largest increase between 2023 and 2024 within Transportation and Mobile Sources was from Airport Emissions, which increased 22.4% from 2023. The full comparison between GHG inventories can be found in Attachment B. Figure 2: Palo Alto Citywide GHG Emissions by Sector, 1990 and 2019 – 2024 2e from municipal operations, which is a slight reduction from 2023. As shown in Figure 3, GHG emissions from Palo Alto’s municipal operations are from five main sectors: Buildings and Other Facilities, Streetlights and Traffic Signals, Wastewater Facilities, City Vehicles and Equipment, and Indirect Emissions. Since the methodology has changed significantly for certain sectors since the first Municipal GHG Inventory was conducted in 2005, it is no longer possible to do an equivalent comparison with previous Municipal GHG inventories. However, the methodologies for Buildings and Other Facilities, Streetlights and Traffic Signals, and City Vehicles and Equipment are similar enough to do rough comparisons for those sectors. By the end of 2024 the City reduced total municipal GHG emissions roughly 64% from the 2005 baseline. Figure 3: 2024 Palo Alto Municipal Greenhouse Gas Emissions by Sector Other Facilities GHG emissions), and natural gas leakage (about 3% of Buildings and Other Facilities GHG emissions). Figure 4. Palo Alto Municipal GHG Emissions, 2005 and 2022-2024 GHG emissions factor than conventional fossil diesel. Table 1 and Figure 5 show a historical comparison of On-Road Vehicle GHG emissions by City Department. Table 1: On-Road Vehicle GHG emissions by City Department (MT CO2e) City Department 2022 2023 2024 % of Total in 2024 Total MT CO2e 1550.2 1307.6 1268.1 100.0% Note: Percentages and MT CO2e may not add to the total due to rounding Figure 5: Palo Alto On-Road Vehicle GHG Emissions by City Department Palo Alto’s Progress Toward Carbon Neutrality Figure 6: 2024 Progress Toward Carbon Neutrality Half Moon Bay, Menlo Park, and Watsonville). Many cities’ targets cannot be compared directly because of different baseline years. Table 2 displays the emission reduction targets of surveyed cities using the same baseline year as Palo Alto (1990). Table 2: Comparison of Select Greenhouse Gas Emission Reduction Targets City Reduction Target Reduction Target Year Baseline Year *The City Council of Irvine has not ratified their climate action plan. Table 3: Greenhouse Gas Emission Reductions of Surveyed Cities City Reduction Target Baseline Year GHG Inventory Year GHG Reduction Cities with 1990 baseline year Palo Alto 80% by 2030 1990 2024 50% Cities with other baseline years Sunnyvale 56% by 2030 2008 2023 37% Berkeley 100% by 2045 2000 2023 41% Hayward 55% by 2030 2005 2023 35% Millbrae 49% by 2030 2005 2023 30% Menlo Park 90% by 2030 2005 2023 27% Half Moon Bay 40% by 2030 2005 2023 27% Brisbane 66% by 2030 2005 2023 16% Santa Barbara 100% by 2035 1990 2019 15% Belmont 40% by 2030 1990 2023 15% Solana Beach 85% by 2045 2016 2018 9% Mountainview 80% by 2050 2005 2019 14% Burlingame 40% by 2030 2005 No data No data *The City Council of Irvine has not ratified their climate action plan. S/CAP Key Performance Indicators Annual Progress Report Achieving 80 x 30 and carbon neutrality by 2030 are the overarching goals for the S/CAP. The S/CAP also outlines Goals and Key Actions in eight areas: Climate Action, Energy, Electric Vehicles, Mobility, Water, Climate Adaptation and Sea Level Rise, Natural Environment, and Zero Waste. The climate action areas of Climate Action, Energy, Electric Vehicles, and Mobility primarily focus on the 80 x 30 and carbon neutrality by 2030 goals. The sustainability areas of Water, Climate Adaptation and Sea Level Rise, Natural Environment, and Zero Waste do not necessarily have a direct impact on greenhouse gas reductions, but have critically important sustainability, public health and safety, regional, resource conservation, and equity benefits that contribute to overall climate action. Progress towards achieving the S/CAP Key Performance Indicators can be found in Attachment D and are summarized in Attachment E. 2026 – 2027 S/CAP Work Plan The City has reached the end of its 2023-2025 S/CAP work planning period. The 2023-2025 S/CAP Work Plan guided S/CAP Implementation with 77 work items, of which 27 focused on sustainability and 50 on climate action. Of the 50 climate action items, 16 were ongoing work items and 34 were discrete projects, of which 27 were completed, 6 are in progress, and 1 is delayed (not started). Of the 27 sustainability work items, 14 were ongoing and 13 were discrete projects, of which 8 were completed. Five of the remaining items are in progress and one is delayed. A summary of the progress of the 2023 – 2025 S/CAP Work Plan can be found in Attachment F. The proposed 2026-2027 S/CAP Work Plan includes 28 strategies focused on Climate Action, 16 strategies focused on Sustainability, and 3 strategies for overall S/CAP Communications for all areas of the S/CAP. The full 2026 – 2027 Work Plan can be found in Attachment G. At a high level, the Climate Action priorities in the Work Plan are intended to help the community develop a funding strategy for community-wide electrification at a pace that balances community willingness to fund climate action, utility rate impacts, and the community’s desire to maintain leadership in this area. It will do this through piloting cost- efficient building electrification and EV charging program models in the single-family, multi- family, and non-residential sectors that minimize the cost to the City while remaining attractive to customers. In parallel, staff will present different strategies and scenarios for funding community-wide electrification and carbon neutrality using the data and modeling frameworks developed in the S/CAP Funding Study. The key areas of focus for the Sustainability priorities in the Work Plan are water, sea level rise, wildfire protection, natural environment, green stormwater infrastructure, and zero waste. While sustainability strategies do not necessarily have a direct impact on greenhouse gas reductions, they have critically important sustainability, public health and safety, regional, resource conservation, and equity benefits that contribute to overall climate action. These strategies contribute towards achieving the goals of the S/CAP and are directly tied to the Sustainability Key Actions. The City developed a 2026-2027 S/CAP Work Plan to continue progress towards achieving the S/CAP goals. Development of the 2026-2027 S/CAP Work Plan aligns with one of the four Council Priorities for CY 2025: Climate Action and Adaptation, and Natural Environment Protection, and fulfills Council Priority Objective CA 23 - Develop and obtain Council approval for strategies and a 2026/2027 work plan for the next phase of S/CAP implementation of climate and sustainability goals. At the January 9, 2026 Climate Action and Sustainability Committee meeting, the Committee received an update on the status of the 2023-2025 S/CAP Work Plan and discussed the recommended priorities for the 2026-2027 S/CAP Work Plan.17 The development of the 2026-2027 S/CAP Work Plan is described in more depth in the staff report for the January 9, 2026 Climate Action and Sustainability Committee meeting. At that meeting the Committee voted unanimously, inclusive of staff and committee consensus modifications, to recommend that the City Council approve the work plan. Six Studies Requested to be Received The Climate Action and Sustainability Committee and staff recommend the City Council receive six studies that were attached to and summarized in the staff report for the December 13, 2025 17 Climate Action and Sustainability Committee, January 9, 2026; Agenda Item 1; SR #2507-5027, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18309 Climate Action and Sustainability Committee (CASC) workshop on electrification funding and financing strategies.19 These include: The S/CAP Funding and Financing Study (Attachment H), which uses an “S/CAP Funding Model” developed via collaboration between the consultant and City staff and the data and analysis from the other studies to model three illustrative electrification scenarios that show various financial dynamics of community-scale electrification. The EV Charger Needs Assessment (Attachment I), which evaluates illustrative scenarios for EV adoption and charging strategies in Palo Alto to show charging capacity needs and the financial and operational dynamics of different business models and strategies for providing EV charging. Three studies of building electrification strategies and costs in the single-family (Attachment J), multi-family (Attachment K), and non-residential sectors (Attachment L) that provide data and insights that can be used for program design and strategic planning. The S/CAP Funding Source Survey (Attachment M), an inventory of potential funding sources for community-wide electrification. FISCAL/RESOURCE IMPACT 19 Climate Action and Sustainability Committee, December 13, 2025; Agenda Item #A; SR #2507-5025, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18114 that significant financial investment would be needed that exceeds current available resources if the City were to pay for all the needed incremental investment using incentives. As part of the 2026-2027 S/CAP Work Plan, staff will need to work with the City Council and the community to grapple with the funding needs for community-wide electrification in a current environment where federal support has changed and with the local competing priority of maintaining low utility rates. STAKEHOLDER ENGAGEMENT C1. Build awareness about sustainability and climate action and City programs available to the community C2. Drive community actions to achieve S/CAP goals C3. S/CAP Data Collection and Annual Reporting and programs, as well as unmet needs and priorities. The 2024 and 2025 Community Surveys included a question about familiarity with the S/CAP and 80 x 30, with 42% of residents noting they were familiar with the S/CAP and 80 x 30 in both surveys. The only difference is that in 2025 6% of respondents noted that they were very familiar with the S/CAP and 80 x 30 compared to 5% in 2024. The communications focus of the 2026 – 2027 Work Plan will strive to increase awareness from the current 42% of residents who are familiar with the S/CAP and 80 x 30. Mobility-related work items (CA21 – CA25) may require consultation with the Planning and Transportation Commission depending on the project. Infrastructure-related Climate Action items (CA19 – CA20) and Water-related work items (S1-S3) would require consulting or informing the Utilities Advisory Commission (UAC) at various stages of the projects. The UAC would also discuss the potential rate impacts of any utility-related climate action programs as part of the utility financial planning process. ENVIRONMENTAL REVIEW consistent with an existing general or comprehensive plan and does not require additional CEQA review (CEQA Guidelines section 15183). ATTACHMENTS APPROVED BY: Page 1 of 12 Attachment A: Palo Alto 2024 Citywide Greenhouse Gas Emissions Inventory 1.a. Overview of Methodology for Quantifying Greenhouse Gas Emissions Cities represent the single greatest opportunity for tackling climate change, as they are responsible for 70% of global energy-related carbon dioxide emissions, with transportation and buildings among the largest contributors.1 The first step for cities to realize their potential is to identify and measure the sources of their emissions. Best practices for identifying these sources and quantifying emissions are to utilize a standardized GHG inventory. There are two types of Greenhouse Gas (GHG) emissions inventories: 1.Generation-based GHG inventory – This measurement method helps a community understand its level of emissions based on community energy use. It includes 1) direct consumption of energy, 2) consumption of energy via the electrical grid, and 3) emissions from the treatment/decomposition of waste. This is the industry-accepted methodology for quantifying community GHG emissions, with emissions reported by emission source category.2 2.Consumption-based GHG inventory – This measurement method helps a community understand its level of emissions based on consumption. It offers an alternative, more holistic, approach for quantifying emissions within a community, quantifying consumption of goods and services (including food, clothing, electronic equipment, etc.) by residents of a city, with emissions reported by consumption category. In 2014, World Resources Institute, C40 Cities Climate Leadership Group (C40) and ICLEI – Local Governments for Sustainability (ICLEI)3 partnered to create a global standard protocol for generation-based GHG inventories. The Global Protocol for Community-Scale GHG Emissions Inventories (GPC) provides a robust framework for accounting and reporting city-wide GHG emissions for a generation-based inventory. The GPC Protocol is the official protocol specified by the Global Covenant of Mayors and defines what emissions must be reported and how. In addition, this inventory draws on methods from the U.S. Community Protocol,4 which provides more detailed methodology specific to the U.S. It seeks to: Help cities develop a comprehensive GHG inventory to support climate action planning Help cities establish a base year emissions inventory, set reduction targets, and track their performance Ensure consistent and transparent measurement and reporting of GHG emissions between cities, following internationally recognized GHG accounting and reporting principles 1 See UN Environment Programme, ”Cities and Climate Change,” https://www.unep.org/explore-topics/resource- efficiency/what-we-do/cities/cities-and-climate-change 2 There are two reporting frameworks commonly used by cities: the U.S. Community Protocol and the Global Protocol for Communities (GPC). Palo Alto uses the GPC framework. 3 Formerly the International Council for Local Environmental Initiatives, renamed in 2003 to ICLEI – Local Governments for Sustainability. 4 U.S. Community Protocol; https://icleiusa.org/us-community-protocol/ Page 2 of 12 Enable city inventories to be aggregated at subnational and national levels Demonstrate the important role that cities play in tackling climate change, and facilitate insight through benchmarking – and aggregation – of comparable data Palo Alto’s first generation-based citywide inventory was completed for 2005 and then extrapolated for 1990 (the baseline year). Beginning in 2010, new citywide GHG inventories were completed annually, enabling Palo Alto to track progress over time. The 2024 Palo Alto Citywide GHG inventory, completed by Rincon Consultants, follows the calculation and reporting standards outlined in the GPC BASIC reporting level.9 Inventory calculations were performed using Rincon’s GHG Inventory tool and uploaded into ClearPath 2.0,10 a software platform designed for creating generation-based GHG inventories. GHG emissions from community activities are classified into three main sectors: •Stationary Energy (e.g., building electricity consumption, fugitive natural gas emissions) •Transportation (e.g., on-road passenger vehicles, off-road equipment) •Waste (e.g., solid waste disposal, wastewater treatment and discharge) Activities taking place within a city can generate GHG emissions that occur inside the city boundary as well as outside the city boundary. To distinguish among them, the GPC groups emissions into three categories based on where they occur: Scope 1: GHG emissions from sources located within the city boundary, such as stationary fuel consumption. Scope 2: GHG emissions occurring due to the use of grid-supplied electricity, heat, steam, and/or cooling within the city boundary. Scope 3: All other GHG emissions that occur outside the city boundary as a result of activities taking place within the city boundary. This inventory follows the city-inducted framework in the GPC protocol, which totals GHG emissions attributable to activities taking place within the geographic boundary of the city.11 Under the Basic reporting level as defined by the GPC protocol, the inventory requirements cover scope 1 and scope 2 emissions from stationary energy and transportation, as well as all emissions resulting from waste generating within the city boundary. While the 2024 Inventory follows GPC BASIC reporting standards and aligns with previous GHG emissions inventories, minor updates to calculation methodologies were included in the 2024 Inventory and previous inventories following the GPC protocol were corrected as well. Of note, the 1990 Inventory was updated to follow GPC BASIC reporting standards and align with GHG emissions inventories from 2019 through 2024. Previously excluded emissions sources were added, including: Airport Emissions, Off-Road Vehicles and Equipment, Caltrain Commuter Rail, Composting, Palo Alto Landfill Gas Flaring, and Wastewater Biosolid Treatment. 9 GPC Executive Summary; https://ghgprotocol.org/sites/default/files/2022-12/GPC_Executive_Summary_1.pdf 10 ClearPath 2.0 tool; https://icleiusa.org/clearpath-2/ 11 GPC Protocol; https://ghgprotocol.org/sites/default/files/standards/GHGP_GPC_0.pdf Page 3 of 12 The City did not complete a consumption-based GHG inventory. The California Air Resources Board (CARB) has been tasked with developing an implementation framework and accounting to track consumption-based emissions over time.15 In particular, this framework needs to address how to account for the embodied emissions in the food, goods, and services the community purchases not covered by generation-based GHG inventories. 1.b. Palo Alto’s 2024 GHG Emissions In 2024, Palo Alto emitted an estimated 397,791 metric tons (MT) of carbon dioxide equivalent (CO2e) from the residential, commercial, industrial, transportation, waste, water, and municipal sectors. In comparison to the 1990 base year emissions (which have increased to 798,868 MT from the previously calculated 780,119 MT due to corrections in methodology and additions of excluded emissions sources), these emissions represent a 50.2% decrease in total community emissions, despite a population increase of 22% during that same period. Emissions in 2024 equated to 5.9 MT per capita. The California Air Resource Board’s 2017 Scoping Plan Update recommends a goal for local governments of 6 MT CO2e per capita by 2030 and 2 MT CO2e per capita by 2050.8 In order to achieve 80 x 30, Citywide GHG Emissions need to be at 160,000 MT CO2e (corrected from the previous target of 156,024 MT CO2e). Of the GHG emissions reductions to date, 46.4% came from providing carbon free for the City’s electricity portfolio, 23.4% from declines in transportation emissions, 16.7% from reduction in natural gas (methane) consumption, 11.5% from declines in solid waste emissions, and 1.9% from declines in wastewater-related emissions. For citywide GHG emission sources in 2024, 64.1% of GHG emissions were from Transportation and Mobile Sources, 31.9% from Natural Gas (Methane) Use, and the remainder are from other sources. A comparison of 1990 and 2019 through 2024 Citywide GHG emissions is shown in Figure 1. The full comparison between the inventories can be found in Attachment B Historical Comparison of Citywide GHG Emissions by Sector. Total GHG emissions steadily decreased between 1990 and 2021. However, emissions increased between 2021 and 2022 and slightly increased between 2022 and 2023. The main driver of the increase in 2022 was On-Road Transportation, in part due to the shift away from pandemic- level (reduced) driving frequency, returning to the office after working from home, and economic recovery. These effects likely continued into 2023 as employers continued to change hybrid work policies and economic and travel activities continued to shift. GHG emissions decreased by 4% between 2023 and 2024. This decrease was primarily driven by reductions in Natural Gas (Methane) Use: residential natural gas GHG emissions decreased by 14.2%, commercial by 10.9%, and industrial by 20.1% since 2023. 15 Executive Department State of California. (2019). Executive Order B-55-18 to Achieve Carbon Neutrality. https://www.ca.gov/archive/gov39/wp-content/uploads/2018/09/9.10.18-Executive-Order.pdf. Page 4 of 12 Figure 1: Palo Alto Citywide Greenhouse Gas Emissions by Sector, 1990 and 2019 - 2024 As shown in Figure 2, the two largest categories of emissions are Transportation and Mobile Sources (including On-Road Transportation, Airport Emissions, Off-Road Vehicles and Equipment, and Caltrain Commuter Rail) and Natural Gas (Methane) Use (including Residential, Commercial, and Industrial). Transportation and Mobile Sources include emissions from private, commercial, and fleet vehicles driven within the City’s geographical boundaries, as well as the emissions from public transit vehicles and the City-owned fleet. Off-Road Vehicles and Equipment include airport ground support, construction and mining, industrial, light commercial, portable equipment, and transportation refrigeration units. Natural Gas (Methane) Use includes emissions that result from natural gas (methane) consumption in both private and public sector buildings and facilities, and residential, commercial, and industrial sources. Fugitive emissions related to natural gas (methane) consumption are calculated separately and are discussed in Section 1.d. The City’s electricity supply has been carbon free since 2013, when the City Council approved a Carbon Neutral Electric Resource Plan, committing Palo Alto to pursuing only carbon-neutral electric resources and effectively eliminating all GHG emissions from the City's electric portfolio. Page 5 of 12 Figure 2: 2024 Palo Alto Citywide Greenhouse Gas Emissions by Sector In 2024, Transportation and Mobile Sources accounted for 64.1% of total citywide GHG emissions in Palo Alto. GHG emissions from Transportation and Mobile Sources are estimated to have increased slightly (by less than 1%) between 2023 and 2024 but remain 27% lower than 1990 transportation and mobile emissions. Within Transportation and Mobile Sources, On-Road Transportation increased slightly (less than half a percent). However, this estimate is preliminary due to lack of data. Vehicle miles traveled (VMT) data for 2024 were not yet available when the 2024 GHG inventory was prepared. City staff and external experts calculated a preliminary estimate of 2024 VMT by scaling 2023 per capita VMT based on 2024 population for passenger vehicles and service population for commercial vehicles and buses. This estimate reflects demographic growth and may not capture actual VMT trends. The largest increase between 2023 and 2024 was from Airport Emissions, which increased 22.4% from 2023. The largest increase from 1990 was from Off-Road Vehicles and Equipment, which increased 173%. As shown in Table 2, transportation and mobile sources consist of: On-Road Transportation – This includes all daily vehicular trips made entirely within the Palo Alto city limits (in-boundary trips), one-half of daily vehicular trips with an origin within Palo Alto city limits and a destination outside of Palo Alto city limits (outbound trips; this assumes that Palo Alto shares half the responsibility for trips traveling from other jurisdictions), and one-half of daily vehicular trips with an origin outside Palo Alto Page 6 of 12 city limits and a destination within Palo Alto city limits (inbound trips; this assumes that Palo Alto shares the responsibility of trips traveling to other jurisdictions). Vehicular trips through Palo Alto (such as commuters on Highway 101) are not included because Palo Alto cannot solely implement policies that influence the trip-making behavior. Rather, through trips are assigned to other jurisdictions that can influence either the origin or destination side of the trip-making behavior. Airport Emissions – This includes emissions from take-offs and landings from trips that start and end at Palo Alto Airport. This includes emergency services helicopters, sightseeing helicopters, and training flights. Flights that take-off from Palo Alto Airport but land elsewhere, and flights that land in Palo Alto Airport but take-off from elsewhere are not included per GPC Basic Protocol. Off-Road Vehicles and Equipment - This includes airport ground support (based on take- offs and landings), construction and mining, industrial (based on employment data), light commercial (based on employment data), portable equipment, and transportation refrigeration units (based on service population). Caltrain Commuter Rail – This includes emissions from Caltrain travel within Palo Alto. Table 2: Transportation and Mobile Sources GHG Emissions by Subsector (MT CO2e) Subsector 1990 2019 2020 2021 2022 2023 2024 % of Total 2024 GHG On-Road Transportation 331,840 293,413 217,279 185,925 221,923 225,387 226,019 64.1% Airport Emissions 3,096 2,192 1,664 2,641 1,837 1,935 2,369 0.6% Off-road Vehicles 7,431 14,634 15,029 18,961 20,191 19,129 20,287 5.1% Caltrain Commuter Rail 6,390 4,842 4,552 3,876 7,272 6,377 6,331 1.6% Total MT CO2e 348,757 315,081 238,523 211,403 251,223 252,828 255,006 61.2% Note: Percentages and MT CO2e may not add to the total due to rounding The main driver of GHG emissions from Transportation and Mobile sources is fuel combustion from internal combustion engine (ICE) vehicles, specifically passenger vehicles, commercial vehicles, and buses (69%, 18%, and 2% of all transportation GHG emissions, respectively). Since electricity in the City is carbon-neutral, there are no GHG emissions attributed to passenger, commercial, or bus EVs. The 2024 inventory utilized vehicles miles traveled (VMT) data from Google’s Environmental Insights Explorer (EIE) and VMT-weighted emission factors from the California Air Resources Page 7 of 12 (CARB) Emission FACtor (EMFAC) model17 to estimate GHG emissions from all passenger, commercial, and bus ICE vehicles. Because 2024 VMT data is not yet available from Google EIE, City staff and external experts calculated a preliminary estimate of 2024 VMT by scaling 2023 per capita VMT based on 2024 population for passenger vehicles and service population for commercial vehicles and buses. When the Google EIE data becomes available, the City will update 2024 VMT accordingly. In 2023, 46% of VMT was from inbound trips, 45% from outbound trips, and 9% from in-boundary trips. 18 Commercial and bus VMT data were then multiplied by their respective EV share percentages to determine EVMT of these vehicle categories. 19 including airport ground support, construction, mining, industrial, light commercial, portable equipment, and transportation refrigeration units. All attribution factors used to allocate 17 CARB EMFAC v1.0.1.; https://ww2.arb.ca.gov/our-work/programs/msei/on-road-emfac 18 While these percent EV share estimates also come from CEC’s ZEV Statistics database, only county-level data is available for medium- and heavy-duty (i.e., commercial and bus) ZEVs. The average percent EV share for Santa Clara and San Mateo County was used as a proxy for Palo Alto because Palo Alto shares one zip code (94303) with San Mateo, and much I-E/E-I EVMT attributed to Palo Alto is assumed to be between these two counties 19 CARB OFFROAD v1.0.5.; https://arb.ca.gov/emfac/offroad/ Page 8 of 12 countywide fuel consumption to Palo Alto in 2024 remained the same as previous inventories,23 except airport ground support. Attributed fuel consumption from each off-road sector was then multiplied by its respective GHG emissions factor (MT CO2e/gallon) depending on fuel type (i.e., gasoline, diesel, or natural gas) to estimate GHG emissions. Sustainability Report as the most recently available data.24 It is assumed that the total fuel consumption and allocation methodology described above is comparable to Palo Alto’s share of Caltrain commuter rail emissions in 2024. This estimation method results in the highest emissions to remain conservative. Caltrain electrification is a key component of the Caltrain Modernization program,25 with Caltrain electrified in late September 2024. Now that the Caltrain Modernization program is complete, most of the Caltrain commuter rail emissions will be eliminated in future Citywide GHG Emissions Inventories. 1.d Natural Gas (Methane) Use 23 Attribution factors are based off demographic data such as population, employment, and service population (except for airport ground support). 24 Caltrain 2023 Sustainability Report; https://www.caltrain.com/media/33109 25 Caltrain Modernization Program; https://calmod.org/ Page 9 of 12 appliances. Overall, Natural Gas (Methane) Use emissions remain far below 1990 levels (34.5% decrease). 1Table 3: Natural Gas (Methane) Consumption by Subsector (Therms) Subsector 2019 2020 2021 2022 2023 2024 % of Total 2024 GHG Commercial 12,954,768 10,061,842 10,468,041 11,729,819 12,502,216 11,144,038 15.0% Residential 13,565,360 12,952,262 12,756,160 13,037,423 12,686,165 10,884,832 14.6% Industrial 2,707,034 2,253,641 2,294,119 2,372,902 2,193,781 1,752,352 2.4% Total Therms 28,867,162 25,267,739 25,518,320 27,140,144 27,382,162 23,781,222 31.9% Note: Percentages and Therms may not add to the total due to rounding Natural Gas (Methane) Fugitive Emissions 4), some of which escapes during the drilling, extraction, and transportation processes. Such releases are known as fugitive emissions. The primary sources of these emissions may include equipment leaks, evaporation losses, venting, flaring, and accidental releases. Methane is a potent greenhouse gas – approximately 25 times more powerful than carbon dioxide over a 100-year timescale. Page 10 of 12 1.e. Solid Waste In 2024, Palo Alto's solid waste diversion rate was 88%, far exceeding the 50% mandate for local jurisdictions. “Diversion” includes all waste prevention, reuse, recycling, and composting activities that “divert” materials from landfills. The City uses the diversion rate to measure progress on waste reduction and resource conservation goals. The diversion rate of 88% is an improvement from the 62% rate in 2007, 81% rate in 2019, and 84% rate in 2022 and 2021. However, it is a decrease from the 91% rate in 2022 and 2023 due to increased waste landfilled in 2024. As part of the 2016 S/CAP Framework, the City Council adopted a goal of 95% diversion of materials from landfills by 2030.29 Solid Waste emissions accounted for 2.3% of total 2024 citywide GHG emissions in Palo Alto, a 6.4% decrease from 2023 and an 83.4% decrease from 1990. As shown in Table 4, the 2024 inventory included emissions from solid waste generated in the City but treated biologically outside of the city. This includes composting emissions at the Zero Waste Energy Development Company’s (ZWED) Dry Fermentation Anaerobic Digestion (AD) Facility in San Jose, CA, composting emissions at the Synagro El Nido Central Valley Composting (CVC) facility in Dos Palos, as well as Palo Alto Landfill Gas Flaring Emissions. 2e) 0 731 1,154 843 1,142 1,242 1,308 0.3% 226 281 316 237 233 186 176 0% 24,325 n/a30 n/a n/a n/a n/a n/a n/a 30,732 5,519 4,721 5,029 5,297 6,702 7,715 1.9% 2e Note: Percentages and MT CO2e may not add to the total due to rounding Solid Waste emissions increased slightly in 2024, with landfill methane emissions increasing by 15.1% compared to 2023 but remaining 74.9% lower than 1990 levels. Organic Waste Composting emissions also increased slightly (5.3%) compared to 2023, continuing the trend driven by state-mandated organic waste diversion programs such as SB 1383. 29 Sustainability and Climate Action Plan Framework, November 2016; https://www.cityofpaloalto.org/civicax/filebank/documents/64814 30 Not included because the Palo Alto landfill was closed Page 11 of 12 Waste emissions result from organic material decomposing in the anaerobic conditions present in a landfill and releasing methane (CH4) – a greenhouse gas much more potent than CO2. Organic materials (e.g., paper, plant debris, food waste, etc.) generate methane within the anaerobic environment of a landfill while non-organic materials (e.g., metal, glass, etc.) do not. This is why diverting waste from landfills is so important. In 2016, Governor Brown signed Senate Bill 1383 (SB 1383) to reduce GHG emissions from a variety of short-lived climate pollutants, including methane from organic materials disposed in landfills. SB 1383 is the largest and most prescriptive waste management legislation in California since the California Integrated Waste Management Act of 1989 (AB 939) and aspires to reduce statewide disposal of organic waste 75% by 2025 and recover at least 20% of the currently disposed edible food for human consumption by 2025. Palo Alto is in compliance with many of SB 1383 requirements due to the City’s progressive zero waste programs and initiatives and is continuing to take initiatives to further reduce organic materials from being disposed in landfills. 1.f. Wastewater Treatment 3Table 5: Wastewater-Related GHG Emissions by Subsector (MT CO2e) Subsector 1990 2019 2020 2021 2022 2023 2024 % of Total 2024 GHG Wastewater Biosolid Treatment33 Wastewater Treatment Wastewater Effluent Wastewater Sludge Composting Total MT CO2e 10,110 2,197 1,857 1,674 2,615 2,463 2,409 0.6% Note: Percentages and MT CO2e may not add to the total due to rounding 33 Sludge incineration Page 12 of 12 As shown in Figure 3, RWQCP operations achieved significant GHG reductions in 2019 when the facility’s sewage sludge incinerators were replaced with the more environmentally friendly Sludge Dewatering and Truck Loadout Facility. Previously, RWQCP incinerators were the City’s largest facility-related GHG source. The updated biosolids treatment process has and will continue to reduce GHG emissions by approximately 15,000 MT of CO2e per year when compared to the emissions from incineration. This approximates the carbon dioxide emissions of 3,000 passenger cars. The dewatered sludge is used as agricultural soil supplements. Figure 3: Regional Water Quality Control Plant Historical Total Greenhouse Gas Emissions 1 0 2 4 7 Attachment B: Historical Comparison of Palo Alto Citywide GHG Emissions by Sector Sector and Subsector 1990 GHG emissions (MT CO2e) 2019 GHG emissions (MT CO2e) 2020 GHG emissions (MT CO2e) 2021 GHG emissions (MT CO2e) 2022 GHG emissions (MT CO2e) 2023 GHG emissions (MT CO2e) 2024 GHG emissions (MT CO2e) % Change in 2024 from 1990 % of Total 2024 Emissions Total Transportation & Mobile Sources 348,757 315,081 238,523 211,403 251,223 252,828 255,0061 -26.9%64.1% -On-Road Transportation 331,840 293,413 217,279 185,925 221,923 225,387 226,019 -31.9%56.8% -Airport Emissions 3,096 2,192 1,664 2,641 1,837 1,935 2,369 -23.5%0.6% -Off-road Vehicles 7,431 14,634 15,029 18,961 20,191 19,129 20,287 173.0%5.1% -Caltrain Commuter Rail 6,390 4,842 4,552 3,876 7,272 6,377 6,331 -0.9%1.6% Total Natural Gas (Methane) 194,000 153,509 134,365 135,697 144,996 146,289 127,051 -34.5%31.9% -Commercial Energy 66,987 53,515 55,676 62,667 66,793 59,537 n/a 15.0% -Industrial Energy 14,373 11,961 12,176 12,677 11,720 9,362 n/a 2.4% -Residential Energy 72,149 68,889 67,846 69,652 67,776 58,152 n/a 14.6% Natural Gas (Methane) Fugitive 4,718 5,009 4,384 4,427 4,709 4,751 4,126 -12.5%1.0% Total Wastewater-Related Emissions 10,110 2,197 1,857 1,674 2,615 2,463 2,409 -76.2%0.6% -Wastewater Biosolid Treatment2 1,606 403 0 0 0 0 0 -100.0%0% -Wastewater Treatment 380 381 346 86 82 85 n/a 0% -Wastewater Effluent 8,504 1,005 1,007 915 2,344 2,163 2,077 n/a 0.5% -Wastewater Sludge Composting 409 469 412 185 218 247 -97.1%0.1% Total Solid Waste Emissions 55,283 6,531 6,191 6,110 6,672 8,130 9,199 -83.4%2.3% -Organic Waste Composting (ZWED)0 731 1,154 843 1,142 1,242 1,308 n/a 0.3% -Palo Alto Landfill Gas Flaring 226 281 316 237 233 186 176 -22.1%0% -Palo Alto Landfill Gas Fugitive 24,325 n/a3 n/a n/a n/a n/a n/a -100.0%0% -Palo Alto Landfill Methane 30,732 5,519 4,721 5,029 5,297 6,702 7,715 -74.9%1.9% Brown Power Supply (Electricity)186,000 04 0 0 0 0 0 -100.0%0% Total GHG Emissions (MT CO2e)798,868 482,237 385,320 359,312 410,215 414,461 397,791 -50.2%100% Notes: MT CO2e = metric tons of carbon dioxide equivalent. Percentages and MT CO2e may not add to the total due to rounding 1 Based on a preliminary estimate of 2024 Vehicle Miles Travelled (VMT). 2024 Google Environmental Insights Explorer VMT data was unavailable at time of publication. 2 Sludge Incineration. In 2019, the sewage sludge incinerators at the Regional Water Quality Control Plant were replaced with a Sludge Dewatering and Truck Loadout Facility. 3 Not included because the Palo Alto landfill was closed. 4 Since 2013, the City provides carbon free electricity to all customers. Page 1 of 7 Attachment C: Palo Alto 2024 Municipal Greenhouse Gas Emissions Inventory Overview of Methodology for Quantifying Greenhouse Gas Emissions The 2024 Municipal Greenhouse Gas (GHG) Emissions Inventory follows the calculation and reporting standards outlined in the International Council for Local Environmental Initiatives’ (ICLEI) Local Government Operation (LGO) Protocol1, which aligns with the Global Protocol for Community-Scale GHG Emissions Inventories (GPC) local government operations protocol.2 Under the LGO Protocol, GHG Emissions from Palo Alto’s municipal operations can be classified into four main sectors: Buildings and other facilities (e.g., stationary combustion) Streetlights and Traffic Signals (e.g., electricity use) City vehicle and equipment fleet (e.g., mobile combustion) Wastewater facilities (e.g., wastewater treatment and discharge) Indirect emissions (e.g., employee commuting, landfilled solid waste generation) Activities taking place within a city can generate GHG emissions that occur inside the city boundary as well as outside the city boundary. To distinguish among them, the LGO Protocol groups emissions into three categories based on where they occur: Scope 1 emissions: GHG emissions from sources located within the city boundary Scope 2 emissions: GHG emissions occurring as a consequence of the use of grid- supplied electricity, heat, steam and/or cooling within the city boundary Scope 3 emissions: All other GHG emissions that occur outside the city boundary as a result of activities taking places within the city boundary Palo Alto’s 2024 Municipal GHG Emissions In 2024, the City emitted a total of 14,590 metric tons (MT) of carbon dioxide equivalent (CO2e) from municipal operations. As shown in Figure 1, GHG emissions from Palo Alto’s municipal operations are from five main sectors: Buildings and Other Facilities, Streetlights and Traffic Signals, City Vehicles and Equipment, Wastewater Facilities, and Indirect Emissions. Since the methodology has changed significantly for certain sectors since the first Municipal GHG Inventory was conducted in 2005, it is no longer possible to do an equivalent comparison with previous Municipal GHG inventories. However, the methodologies for Buildings and Other Facilities, Streetlights and Traffic Signals, and City Vehicles and Equipment are similar enough to make rough comparisons. For reference only, in 2005 the City emitted a total of 40,499 MT CO2e from municipal operations. By the end of 2024 the City reduced total municipal GHG emissions roughly 64% from the 2005 baseline. 1 LGO Protocol Rulebook; https://icleiusa.org/resources/local-government-operations-lgo-protocol/ 2 GPC Inventories for local government operations; https://ghgprotocol.org/sites/default/files/standards/GPC_Full_MASTER_RW_v7.pdf Page 2 of 7 Figure 1: 2024 Palo Alto Municipal Greenhouse Gas Emissions by Sector The majority of municipal GHG emissions, about 37%, are attributed to the Regional Water Quality Control Plant (RWQCP). Since the RWQCP is owned and operated by the City, 100% of GHG emissions are attributed to the City and are Scope 1. These GHG emissions include indirect nitrous oxide (N2O) emissions from wastewater effluent (about 95% of total wastewater GHG emissions), process nitrous oxide emissions from the treatment of wastewater without nitrification/denitrification (about 4% of total Wastewater Facilities sector GHG emissions), and natural gas combustion/leakage (about 1% of total Wastewater Facilities GHG emissions). The second major contributor to GHG emissions is attributed to the Indirect Sources sector, or the City’s Scope 3 sources. These indirect sources account for about 33% of total GHG emissions and include GHG emissions resulting from employee commute mobile combustion (about 44% of the Indirect Emission Sources GHG emissions) and methane emissions resulting from landfilled solid waste (about 56% of the Indirect Emissions Sources GHG emissions). Landfilled solid waste methane emissions are a product of decomposing organic material generated and sent to the landfill by municipal operations. This subsector attributes methane emissions based on total landfilled solid waste generated in the inventory year and does not account for pre- existing landfilled solid waste methane emissions. The third major contributor to GHG emissions includes GHG emissions from natural gas usage in Buildings and Other Facilities (excluding the RWQCP), considered a Scope 1 source. These GHG emissions accounted for 22% of total GHG emissions and are driven by natural gas combustion (about 97% of Buildings and Other Facilities GHG emissions), and natural gas leakage (about 3% of Buildings and Other Facilities GHG emissions). Page 3 of 7 The final contributor to GHG emissions includes the City’s vehicle and equipment fleet sector, considered a Scope 1 source (except for the City’s electric vehicles, EVs, which are considered a Scope 2 source due to the energy source being purchased electricity). Together, these account for about 9% of total GHG emissions and are mainly driven by the City’s on-road vehicle fleet powered by gasoline, renewable diesel, and compressed natural gas (CNG) and off- vehicle/equipment fleet powered by gasoline and diesel. The City’s on-road vehicle fleet makes up about 97% of City Vehicle and Equipment Fleet GHG emissions, while off-road vehicles and equipment make up the remaining 3%. Figure 2: Palo Alto Municipal GHG Emissions, 2005 and 2022-2024 Page 4 of 7 Table 1: Palo Alto Municipal GHG Emissions (MT CO2e) Sector and Subsector Scope 2005 2022 2023 2024 % Change in 2024 from 2005* Buildings and Other Facilities 10,698 3,398 2,844 3,154 - 70.5% - Electricity Use Scope 2 0 0 0 - Natural Gas Combustion Scope 1 3,291 2,755 3,055 - Natural Gas Leakage Scope 1 107 89 99 - Water-Energy Consumption Scope 2 0 0 0 Streetlights & Traffic Signals 748 0 0 0 - 100% City Vehicles and Equipment Fleet 2,835 1,676 1,352 1,308 - 53.9% - On-road Renewable Diesel**Scope 1 499 182 182 - On-road Gasoline Scope 1 1,045 1,108 1,079 - On-road CNG Scope 1 6 20 7 - On-road Electric Scope 2 0 0 0 - Off-road Renewable Diesel**Scope 1 124 40 37 - Off-road Gasoline Scope 1 3 2 3 Wastewater Facilities (Regional Water Quality Control Plant)11,269*5,715 5,722 5,354 - 52.5%* - Effluent Discharge Fugitive Scope 1 5,448 5,414 5,070 - Process N₂O Emissions Scope 1 200 206 207 - Electricity Use Scope 2 0 0 0 - Natural Gas Combustion Scope 1 65 99 75 - Natural Gas Leakage Scope 1 2 3 2 Indirect Emission Sources 5,567*4,758 4,873 4,774 - 14.2%* - Employee Commute Scope 3 1,865 1,980 2,096 - Landfill Methane Scope 3 5,567 2,893 2,893 2,678 Power Generation Facilities 9,308 n/a n/a n/a n/a Water Delivery Facilities 74 n/a n/a n/a n/a Total MT CO2e 40,499*15,546 14,792 14,590 - 64%* Note: Percentages and MT CO2e may not add to the total due to rounding * Not an equivalent comparison due to different methodologies ** Diesel emissions factors were used in 2022 Page 5 of 7 Despite the overall downward trend, GHG emissions from natural gas combustion (Scope 1) in the Buildings and Other Facilities sector increased between 2023 and 2024 due to higher therms usage. These emissions had previously decreased by 16% from 2022 to 2023 but rose by 11% from 2023 to 2024. Nonetheless, total GHG emissions from natural gas combustion declined by 7% between 2022 and 2024. 5 Administrative Services Department – purchasing and printing Community Services Department – administration, arts and culture, recreation, parks and golf Fire Department – operations, support Information Technology Department – information technology Planning and Development Department – inspection services Police Department – police, animal services Public Works Department – engineering, facilities management, equipment management, operations, wastewater treatment operations, storm drainage, refuse, Palo Alto airport operations Utilities Department – administrative services, electric operations, electric engineering, water / gas / wastewater engineering, water / gas / wastewater operations, resource management 5 CARB staff has reached out to several renewable diesel fuel producers and as of February 2023, is aware that renewable diesel produced by Neste meets the regulatory requirements and standards. Estimates in GHG emissions reduction based on emission factors provided by Neste accessed at: https://www.neste.com/en- us/products-and-innovation/neste-my-renewable-diesel/product-information Page 6 of 7 Table 2: On-Road Vehicle GHG emissions by City Department & Vehicle Fuel Type (MT CO2e) City Department Diesel Vehicles Gasoline Vehicles CNG Vehicles Total (MT CO2e) Administrative Services 2.4 0 0.2 2.6 Community Services 5.4 87.8 0 93.2 Fire 52.5 66 0.02 118.5 Information Technology 0 2.3 0 2.3 Planning and Development 0 18.6 0.03 18.7 Police 7 413.5 0 420.5 Public Works 56 214.3 4.5 274.9 Utilities 58.5 276.4 2.5 337.4 Total MT CO2e 181.9 1,078.8 7.3 1,268 Note: Totals and MT CO2e may not add to the total due to rounding Table 3: On-Road Vehicle GHG emissions by City Department (MT CO2e) City Department 2022 2023 2024 % of Total in 2024 Administrative Services 8.3 2.8 2.6 0.2% Community Services 88.9 87.9 93.2 7.4% Fire 228.9 118.7 118.5 9.3% Information Technology 2.5 2.4 2.3 0.2% Planning and Development 18.1 22.2 18.7 1.5% Police 430 421.7 420.5 33.2% Public Works 337.8 323.5 274.9 21.7% Utilities 436 328.5 337.4 26.6% Total MT CO2e 1550.2 1307.6 1268 100.0% Note: Percentages and MT CO2e may not add to the total due to rounding Page 7 of 7 Figure 3: Palo Alto On-Road Vehicle GHG Emissions by City Department 1 0 2 4 9 Attachment D: S/CAP Key Performance Indicators Progress Report This progress report provides an update on the Sustainability and Climate Action Plan (S/CAP) Key Performance Indicators (KPIs) for calendar year 2024. The S/CAP Key Actions are abbreviated for the purposes of this report, but the full key actions can be found in Section 5: Goals and Key Actions of the S/CAP.1 Significant actions and accomplishments from 2024 can be found on the Sustainability website2. Climate Action GOAL  Reduce GHG emissions 80% below 1990 levels by 2030 KEY ACTIONS Community assistance C1. Provide building and transportation emissions consultations for residents C2. Develop major employer custom emissions reduction plans Staff Analysis C3. Study additional key actions needed for 80 x 30 C4. Study staffing and budgetary needs C5. Study funding alternatives C6. Conduct an electrification affordability study C7. Study carbon neutrality options Staff and Council action C8. Accelerate GHG reductions KEY PERFORMANCE INDICATORS  GHG reductions  Community awareness  Participation in Climate Pledge Climate Action KPI: GHG Reductions Palo Alto has already made significant progress in its sustainability and climate action efforts, decreasing its community emissions to 397,791 metric tons (MT) CO2e, or 5.9 MT CO2e per Palo Alto resident in 2024 (50.2% decrease compared to 1990 levels). However, to achieve the 80 x 30 and carbon neutrality by 2030 goals, Palo Alto must meet a greenhouse gas (GHG) emissions target of 160,000 MT CO2e, or 2 MT CO2e per Palo Alto resident by 2030. In order to make 1 2022 Sustainability and Climate Action Plan; https://www.paloalto.gov/files/assets/public/v/1/sustainability/reports/2022-scap-report_final.pdf 2 Sustainability Actions and Accomplishments; https://www.cityofpaloalto.org/City-Hall/Sustainability/Goals-and- Progress/Sustainability-Actions-and-Accomplishments 1 0 2 4 9 progress on the GHG reductions goal, in 2024 the City focused on community assistance (Key Action C1, C2), staff analysis (C3, C4, C5, and C6), and staff and Council action (C8). Climate Action KPI: Community Awareness 5 Fifty-eight percent of Palo Altans were not familiar with the S/CAP and it’s 80 x 30 goal. Climate Action KPI: Participation in Climate Pledge GOALS Reduce GHG emissions from the direct use of natural gas in Palo Alto’s building sector by at least 60% below 1990 levels (116,400 MT CO2e reduction) Reduce GHG emissions from the direct use of natural gas in Palo Alto’s building sector by at least 60% below 1990 levels (116,400 MT CO2e reduction) KEY ACTIONS Reduce greenhouse gas emissions in appliances and equipment E1.Reduce GHG emissions in Single-Family Appliances and Equipment E2.Reduce GHG emissions in Non-Residential Equipment Reduce natural gas use in buildings E3.Reduce Gas Use in Major Facilities E4.Reduce natural gas use at City facilities 5 Palo Alto Community Survey, 2024; https://www.paloalto.gov/files/assets/public/v/1/city- manager/communications-office/general/palo-alto-community-survey-report-2024-final.pdf 1 0 2 4 9 Make it affordable E5.Support income-qualified residents and vulnerable businesses with electrification E6.Develop electric rate options Paving the road to electrification E7.Use codes and ordinances to facilitate electrification E8.Electric grid modernization plan E9.Additional electrification opportunities in commercial and multi-family buildings KEY PERFORMANCE INDICATORS GHG emissions from natural gas use in buildings (single-family, multifamily, nonresidential) Percentage of single-family households with no gas connections Percentage of gas use reduction in major facilities and City facilities In order to make progress on the Energy goals, in 2024 the City focused on key actions to reduce GHGs in appliances and equipment (E1, E2), reduce natural gas use in buildings (E3, E4), make it affordable (E5, E6), and pave the road to electrification (E7, E8). In 2024, total natural gas (methane) use in buildings was 23,781,222 therms7 or 127,051 MT CO2e, which is a decrease from 2023. In 2023, total natural gas (methane) use in buildings was 27,382,162 therms or 146,289 MT CO2e. This is a slight increase from 2022, when total natural gas (methane) use in buildings was 27,140,144 therms or 144,996 MT of CO2e. This is most likely because it was colder in the first three months of 2023 than it was in the first three months of 2022. It could also be because more people were returning to work in offices and continuing to return to Palo Alto for dining, shopping, and recreation. The decrease between 2024 and 2023 is partly because January 2024 was the warmest January on record. It could also be partly because residents have replaced more gas appliances with electric appliances. The City estimates that 2.0% of single-family households (289 single-family homes) have no gas connections. The S/CAP impact analysis found that in order to achieve 80 x 30, virtually all single-family gas appliances need to be switched to electric appliances. Natural gas (methane) use in City facilities in 2024 decreased by 45 percent compared to the 2016 baseline. Data is currently not available for other major facilities. 7 One therm is the energy content of approximately 100 cubic feet of natural gas at standard temperature and pressure. 1 0 2 4 9 Electric Vehicles GOALS Reduce transportation related GHG emissions at least 65% below 1990 levels (215,696 MT CO2e reduction) Develop a public and private charging network to support EV adoption KEY ACTIONS Education, awareness, and collaboration EV1.Raise awareness of alternative transportation modes, micro-mobility, and EVs EV2.Collaborate to promote EV adoption regionally EV3.Promote EV adoption and alternative commutes for commuters EV4.Facilitate the adoption of EVs, e-bikes and other light EVs EV5.Promote alternative transportation modes and infrastructure to support adoption Expand EV infrastructure EV6.Expand EV charging access for multi-family residents EV7.Improve EV charging access for income-qualified residents EV8.Ensure EV charging capacity supports EV growth Electrify fleet vehicles EV9.Electrify municipal vehicle fleet EV10.Support policy to electrify fleet vehicles KEY PERFORMANCE INDICATORS GHG emissions from vehicle travel Percentage of registered EV vehicles in Palo Alto Percentage of new vehicle sales that are EVs Percentage of multifamily residents with access to overnight EV charging Gasoline sales in Palo Alto EV KPI: GHG emissions from vehicle travel 2e of citywide GHG emissions were attributed to on-road vehicle transportation. While VMT data were not available for 2024, City staff and external experts calculated a preliminary estimate of 2024 VMT based on 2023 per capita VMT, 2024 population for passenger vehicles, and service population for commercial vehicles and buses. The preliminary estimate of 226,019 MT CO2e is an increase compared to the past four years, but a decrease compared to pre-COVID-19 emissions from VMT. Emissions from passenger vehicles decreased slightly, but emissions from commercial vehicles and buses increased slightly. EV KPI: Percentage of registered electric vehicles in Palo Alto 1 0 2 4 9 Electric vehicles (EVs) made up 19% of all registered vehicles in Palo Alto in 2024 (9,673 EVs).9 This percentage follows a trend of increasing EV registrations in Palo Alto since 2021: EVs made up 11% of all registered vehicles in Palo Alto in 2021 (5,499 EVs out of 50,192 total registrations), 13% in 2022 (6,496 EVs), and 16% in 2023 (8,019 EVs). EV KPI: Percentage of new vehicle sales that are EVs EV KPI: Percentage of multifamily residents with access to overnight EV charging EV KPI: Gasoline sales in Palo Alto GOALS Reduce total vehicle miles traveled 12% by 2030, compared to a 2019 baseline, by reducing commute vehicle miles traveled 20%, visitor vehicles miles traveled 10%, and resident vehicle miles traveled 6% Increase the mode share for active transportation (walking, biking) and transit from 19% to 40% of local work trips by 2030 KEY ACTIONS Promote alternatives to single occupancy car trips M1.Increase active transportation and transit for local work trips M2.Expand availability of transit and shared mobility services M3.Implement the Bicycle and Pedestrian Transportation Plan M4.Improve Transportation Demand Management for employees and residents Change the way we think about parking cars M5.Implement smart parking infrastructure in public garages Learn how we can grow without increasing GHG emissions M6.Study land use and transportation M7.Continue to implement the City’s Housing Element M8.Improve transit and traffic flow 9 Electric vehicles (EVs) and plug-in hybrid electric vehicles combined. 1 0 2 4 9 Leverage current tools to foster mobility related GHG reductions M9.Create housing density and land use mix that supports transit and non-SOV (Single Occupancy Vehicle) transportation modes M10.Encourage reductions in GHGs and VMT (vehicle miles traveled) KEY PERFORMANCE INDICATORS Total VMT Commute mode share for all modes Commute Benefits participation by City employees Transit ridership, the proportion of residents within a quarter-mile walkshed of frequent transit, and the proportion of residents covered by on-demand transit services (data may not be available every year) Number and proportion of residents within a 10-minute walk of retail or other essential services/land uses (data may not be available every year) Number of businesses participating in Transportation Demand Management (TDM) programs (when regional TDM Program data becomes available) In order to make progress on the Mobility goals, in 2024 the City focused on key actions to promote alternatives to single occupancy car trips (M1, M2, M3), change the way we think about parking cars (M5), learn how we can grow without increasing GHG emissions (M7, M8), and leverage current tools to foster mobility related GHG reductions (M9). Mobility KPI: Total VMT In 2023, total VMT was 597,735,000, which is an increase from 2022, when total VMT was 575,389,724. While VMT data were not available for 2024, City staff and external experts calculated a preliminary estimate of 2024 VMT based on 2023 per capita VMT, 2024 population for passenger vehicles, and service population for commercial vehicles and buses. The preliminary estimate of 601,350,463 is an increase from 2023, but significantly less than the pre-COVID 19 VMT of 952,584,400 in 2019. Mobility KPI: Commute mode share for all modes Table 1 shows the commute mode share for Palo Alto residents age 16 and older. These data are from the US Census American Community Survey. Data from 2019 is also included as a comparison to pre-COVID 19 pandemic commute mode share. The share of trips taken by solo drivers in automobiles has increased since 2022 but is less than 2019. The share of trips taken by Palo Alto residents driving in carpools has increased from all years. The share of Palo Alto residents taking public transportation has not returned to pre-COVID 10 levels. However, the share of Palo Alto residents bicycling and walking has increased since 2019. It is important to note that the share of Palo Alto residents working from home has increased significantly since 2019, with 9.7% working from home in 2019 compared to 22.4% working from in 2024. The share of Palo Alto residents working from home in 2024 decreased from both 2023 and 2022. The large increase in Palo Alto residents working from home reduces the total number of work trips and changes the mode share for other modes. 1 0 2 4 9 Table 1. Mode share estimates as a percentage of commute trips taken by Palo Alto residents age 16 and older Mode 2019 2022 2023 2024 Automobile – Solo Driver 61.2%46.1%51.6%51.5% Automobile – Carpool 5.2%2.4%3.9%6.2% Taxi, motorcycle, or other 2.1%1.7%2.1%1.2% Public Transportation 8.0%1.6%2.3%1.2% Bicycle 10.0%9.2%6.7%11.0% Walk 3.9%6.4%5.4%6.6% Work from home 9.7%32.6%27.9%22.4% Table 2 shows the mode share for all trips taken within, inbound to Palo Alto, or outbound to Palo Alto by all travelers – residents, commuters, and visitors - in 2022 through 2023. These data are from Google Environmental Insights Explorer, which has not released transportation data for 2024. This includes travel mode share for Palo Alto, which is not yet available for 2024. Data from 2019 is also included as a comparison to pre-COVID 19 pandemic trip mode share. The shares of trips taken by automobile, rail, and walking in 2023 were comparable to 2022. Bus ridership increased in 2023 compared to 2022, returning to pre-COVID 19 levels. However, rail ridership is still lower than pre-COVID 19 and bicycle ridership further decreased below pre- COVID 19 levels. Table 2. Mode share estimates as a percentage of trips taken within, inbound to Palo Alto, or outbound from Palo Alto by all travelers Mode 2019 2022 2023 Automobile 71.7%79.8%79.9% Rail 2.8%1.3%1.5% Bus 1.3%0.8%1.3% Bicycle 5.2%5.1%4.6% Walk 19%13.1%12.8% Mobility KPI: Commute Benefits participation by City employees In 2024, 25% of full-time City employees participated in commute benefits programs. Mobility KPI: Transit ridership, the proportion of residents within a quarter-mile walkshed of frequent transit, and the proportion of residents covered by on-demand transit services In 2024, 1.2% of Palo Alto residents took transit for their commute to work. For all trips in Palo Alto by all travelers – residents, commuters, and visitors – 2.1% of all trips were by transit in 2023. 2024 data is not yet available. In 2024, 17.6% of residents were within a quarter-mile walkshed of frequent transit. Walksheds are a visual representation of the area a pedestrian can travel to access transit, and “frequent transit” is defined as a stop or station with service every 15 minutes or less. Since the introduction of Palo Alto Link in 2023, 67,000 Palo Alto residents (99% of the population) are covered by on-demand transit. 1 0 2 4 9 Mobility KPI: Number and proportion of residents within a 10-minute walk of retail or other essential services/land uses In 2024, 37,800 Palo Alto residents (56.2% of all 67,231 residents) lived within a 10-minute walk of retail locations or other essential services. Mobility KPI: Number of businesses participating in Transportation Demand Management (TDM) programs The City will report on the “Number of businesses participating in TDM programs” KPI when regional TDM program data becomes available. Water GOALS Reduce Palo Alto’s potable water consumption 30% compared to a 1990 baseline (subject to refinement based on forthcoming California water efficiency standards expected in 2024) Develop a water supply portfolio which is resilient to droughts, changes in climate, and water demand and regulations, that supports our urban canopy KEY ACTIONS W1.Maximize water conservation and efficiency W2.Build a salt removal facility W3.Implement One Water Portfolio projects W4.Develop a dynamic water planning tool KEY PERFORMANCE INDICATORS Estimated indoor per capita residential water consumption Estimated outdoor residential water consumption for irrigation Water consumption of commercial customers with irrigation meters Amount of recycled water used in Palo Alto Volume of stormwater that is captured and reused The near-term focus for water is reducing water consumption while exploring ways to capture and store water and increase the availability and use of recycled water. In 2024, the City held three landscape workshops on water-saving topics including drought- tolerant landscape design, lawn conversion, and information on available rebates. The City tabled at five neighborhood events to educate residents on water efficiency programs and rebates. The City also provides the WaterSmart water management tool which gives residents information about their water consumption and personalized water conservation recommendations. The Water KPIs are shown in Table 3. 1 0 2 4 9 Table 3: S/CAP Key Performance Indicators for Water (2024) KPI 2024 Estimated indoor per capita residential water consumption 17,927 Gallons per capita Estimated outdoor residential water consumption for irrigation 662 Million gallons Water consumption of commercial customers with irrigation meters 349 Million gallons Amount of recycled water used in Palo Alto 63 Million gallons Volume of stormwater that is captured and reused No data to report – no active stormwater reuse projects at this time Climate Adaptation and Sea Level Rise GOALS Develop and adopt a multi-year Sea Level Rise Adaptation Plan including a Sea Level Rise Vulnerability Assessment and adaptation plan Minimize wildland fire hazards by ensuring adequate provisions for vegetation management, emergency access and communications, inter- agency firefighting, and standards for design and development within wildland areas KEY ACTIONS Minimize the impacts of sea level rise S1. Complete a Sea Level Rise Vulnerability Assessment S2. Implement a Sea Level Rise Adaptation Plan S3. Begin design process for a levee project S4. Complete bridge improvements and identify protection strategies from flood events Minimize the impacts of wildland fire hazards S5.Implement the Foothills Fire Management Plan S6.Minimize fire hazards through zoning S7.Collaborate on reducing wildfire hazards S8.Implement CAL FIRE education programs KEY PERFORMANCE INDICATORS Percent of vulnerable locations protected from three feet of sea level rise Percent of properties protected from San Francisquito Creek flooding Progress towards sea level rise levee alignments Implementation of Foothills Fire Management Plan mitigation measures The near-term focus for Climate Adaptation and Sea Level Rise is to develop and adopt a multi- year Sea Level Rise Adaptation Plan and minimize wildland fire hazards through Foothills Fire 1 0 2 4 9 Management Plan implementation, zoning, and collaborating with Fire agencies. In order to make progress on the Climate Adaptation and Sea Level rise goals, in 2024 the City focused on key actions to minimize the impacts of sea level rise (S1, S2, S3, S4) and minimize the impacts of wildland fire hazards (S5, S6, S7, S8). Sea Level Rise KPI: Percent of vulnerable locations protected from three feet of sea level rise Sea Level Rise KPI: Percent of properties protected from San Francisquito Creek flooding 11,12 Sea Level Rise KPI: Progress towards sea level rise levee alignments 11 Palo Alto Storm Drain Master Plan; 2015; https://www.paloalto.gov/files/assets/public/v/1/public- works/engineering-services/webpages/stormwater/storm-drain/storm-drain-master-plan-update-june-2015.pdf 12 Ballot Measure Description of the Proposed Storm Water Management Fee; 2017; https://www.paloalto.gov/files/assets/public/v/1/public-works/flood-and-storm/storm-water-management- program/stormwater-management-fee-ballot-2017-final.pdf 1 0 2 4 9 community assets. If funded, this work will complement the preexisting City’s Vulnerability Assessment15 that was completed in 2022. SB1 grant funding is not slated to reexamine levee alignments themselves but would provide additional protection strategies that could be considered. Climate Adaptation KPI: Implementation of Foothills Fire Management Plan mitigation measures Table 4: S/CAP Key Performance Indicators for Foothills Fire Management Plan Mitigation Measures (2022-2023) Foothills Fire Management Plan Mitigation Measure 2022 2023 2024 15 2022 Palo Alto Sea Level Rise Vulnerability Assessment; https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/environmental-compliance/sea-level- rise/palo-alto-sea-level-rise-vulnerability-assessment-june-2022-062822-linked-final.pdf 1 0 2 4 9 Number of residential defensive space re-inspections that are required 33 homes 18 homes 21 homes Percent of miles of overhead utility line tree trimming in Foothills completed 65.73% (7.25 miles) 67.91% (7.49 miles) 54.49% (2.91 of 5.34 total miles) Total miles of electric lines undergrounded in the City of Palo Alto Utilities Foothills Coverage Area Approx. 2.94 miles (15,500 feet) Approx. 1.04 miles (5,500 feet) Approx. 2.27 miles (12,000 feet) Percent of electric line miles undergrounded in the City of Palo Alto Utilities Foothills Coverage Area 31.5%11.2% 24.4% Natural Environment GOALS Restore and enhance resilience and biodiversity of our natural environment throughout the City Increase tree canopy to 40% city-wide coverage by 2030 By 2030, achieve a 10% increase in land area that uses green stormwater infrastructure to treat urban water runoff, compared to a 2020 baseline KEY ACTIONS Maintain and protect tree canopy N1.Increase Palo Alto’s tree canopy N2.Ensure No Net Tree Canopy Loss for all projects N3.Reduce pesticide use in parks and open space preserves N4.Enhance pollinator habitat N5.Establish a carbon storage of tree canopy baseline and KPI Restore and enhance biodiversity 1 0 2 4 9 N6.Maximize biodiversity and soil health N7.Coordinate implementation of the City Natural Environment-Related Plans N8.Expand Water Efficient Landscape Ordinance (WELO) requirements N9.Phase out gas-powered lawn and garden equipment Reduce pollutants entering the Bay N10.Support the Green Stormwater Infrastructure Plan. N11.Incorporate green stormwater infrastructure in municipal projects KEY PERFORMANCE INDICATORS City-wide Tree Canopy coverage Native species on City property and in new landscape projects (to measure biodiversity) Land area that uses green stormwater infrastructure to treat urban water runoff The near-term focus for Natural Environment is to increase Palo Alto’s Tree Canopy, reduce pesticide usage in parks and open space preserves, and support the Green Stormwater Infrastructure Plan and incorporate it in municipal projects. In order to make progress on the Natural Environment goals, in 2024 the City focused on key actions to maintain and protect tree canopy (N2, N3, N4, N5), restore and enhance biodiversity (N6, N7, N8, N9), and reduce pollutants entering the Bay (N10, N11). Ongoing tree planting efforts to increase tree canopy will be integrated with traditional tree planting programs and Green Stormwater Infrastructure to provide co-benefits including carbon sequestration, improve water quality, capture stormwater when feasible, and reduce the urban heat island. Natural Environment KPI: City-wide Tree Canopy coverage 2024 canopy coverage data is not yet available. In 2023, citywide tree canopy coverage was 44%, however this includes open space and the Foothills Nature Preserve. Tree canopy coverage in urbanized areas only was 26%. Natural Environment KPI: Native species on City property and in new landscape projects (to measure biodiversity) In 2024, City landscape projects included the Boulware Park renovation, Cameron Park butterfly garden installation, and Mitchell Park Dog Park. Of the 996 individual plants established at these sites, 935 were native to California. Across the sites, 22 native species were planted. Natural Environment KPI: Land area that uses green stormwater infrastructure to treat urban water runoff There is currently no data to report for the “Land area that uses green stormwater infrastructure to treat urban water runoff” KPI. 1 0 2 4 9 Zero Waste GOALS Divert 95% of waste from landfills by 2030, leading to zero waste Implement short- and medium-term initiatives identified in the 2018 Zero Waste Plan KEY ACTIONS Education and outreach ZW1.Encourage food waste prevention and require food recovery from commercial food generators ZW2.Promote residential food waste reduction ZW3.Champion waste prevention, reduction, reusables, and the sharing economy ZW4.Provide waste prevention technical assistance to the commercial sector Collaborate on and expand policies ZW5.Prioritize domestic processing of recyclable materials ZW6.Eliminate single-use disposable containers ZW7.Expand the Deconstruction and Construction Materials Management Ordinance ZW8.Implement Reach Code standard for low carbon construction materials KEY PERFORMANCE INDICATORS Diversion rate Number of Zero Waste Plan initiatives implemented The near-term focus for Zero Waste is to encourage residents and businesses to reduce their food waste, which will also reduce the associated greenhouse gas emissions, lower their waste generation through the undertaking of zero waste living practices of using less at home and at work; to champion waste prevention technical assistance to businesses; eliminate single-use disposable containers; and prioritize domestic processing of recyclable materials. In order to make progress on the Zero Waste goals, in 2024 the City focused on key actions on education and outreach (ZW1, ZW2, ZW3, ZW4) and to collaborate on and expand policies (ZW5, ZW8). The City developed a new booklet for businesses, “Multi-Ordinance Checklist”, that summarizes Palo Alto’s Zero Waste and SB 1383 requirements such as requirements for the use of colored refuse containers as well as see-through colored bags to match the color of the containers for Compost, Recycle, and Landfill materials. The printed copies were mailed to 425 commercial businesses, specifically food service establishments, in November 2023. In addition, the City developed a new brochure for the Very Small Quantity Generator Program for household hazardous waste and has been distributing it during household hazardous waste events and direct business engagement. Expanding the Disposable Foodware Ordinance (ZW6) has been put on hold until further clarification is received through Senate Bill 54 final regulations and other recent legislation 1 0 2 4 9 creating changes on what will be considered recyclable and compostable. The City developed and printed postcard and trifold brochures on the Disposable Foodware Ordinance/AB 1276 to be mailed and handed out to 450 food service establishments. Zero Waste KPI: Diversion rate Zero Waste KPI: Number of Zero Waste Plan initiatives implemented 1 0 2 5 0 Attachment E: S/CAP Key Performance Indicators Progress Summary Key Performance Indicator 2022 2023 2024 GHG reductions (1990 baseline)47.4%48.1%50.2% Community awareness No data 68% of participants indicated that it is essential or very important for Palo Alto to focus on GHGs in the next 2 years 40% of Community Survey respondents indicated they were at least slightly familiar with the S/CAP and 80x30 goalCl i m a t e A c t i o n Participation in Climate Pledge No data No data 3 GHG emissions from natural gas use in buildings 144,996 MT CO2e 146,289 MT CO2e 127,051 MT CO2e % of single-family households in Palo Alto with no natural gas connections 1.2% (208 homes)1.5% (232 homes)2.0% (289 homes) En e r g y % of natural gas use reduction in major facilities and City facilities (2016 baseline) No data 45% reduction in City facilities 45% reduction in City facilities GHG emissions, vehicle travel 221,923 MT CO2e 225,387 MT CO2e 226,019 MT CO2e* % of registered vehicles in Palo Alto that are EVs 13%16%19% % of new vehicle sales in Palo Alto that are EVs 43%52%55% % of multifamily residents with access to overnight EV charging 3%4%7.6% El e c t r i c V e h i c l e s Gasoline sales in Palo Alto Data unavailable Data unavailable Data unavailable Total Vehicle Miles Traveled (VMT) 575,190,655 597,735,000 601,350,463* (preliminary estimate) Commute mode share (commute trips by residents age 16 and older) Automobile – solo driver Automobile – carpool Taxi, motorcycle, or other Public Transportation Bicycle Walk Work from home 46.1% 2.4% 1.7% 1.6% 9.2% 6.4% 32.6% 51.6% 3.9% 2.1% 2.3% 6.7% 5.4% 27.9% 51.5% 6.2% 1.2% 1.2% 11.0% 6.6% 27.4% Trip mode share (all trips by all travelers) Automobile Rail Bus Bicycle Walk 71.7% 2.8% 1.3 5.2% 19% 79.9% 1.5% 1.3% 4.6% 12.8% Data forthcoming* Mo b i l i t y City employee commute benefits participation No data 19%25% 1 0 2 5 0 Key Performance Indicator 2022 2023 2024 Transit ridership by adult residents for commute trips Transit ridership by all travelers for all trips The proportion of residents within a quarter-mile walkshed of frequent transit Proportion of residents covered by on-demand transit services 1.6% 2.1% Data unavailable Data unavailable 2.3% 2.8% 21.9% 99.7% 1.2% Data forthcoming* 17.6% 99% Number and proportion of residents within a 10-minute walk of retail or other essential services/land uses Data unavailable 32,700 (48% of all 68,112 residents) 37,800 (56.2% of all 67,231 residents) Businesses participating in Transportation Demand Management (TDM) programs Data unavailable Data unavailable Data unavailable Indoor per capita residential water consumption (estimated) 24,171 gallons 17,537 gallons 17,927 gallons Outdoor residential water consumption for irrigation (estimated) 427 million gallons 620 million gallons 662 million gallons Water consumption of commercial customers with irrigation meters 348 million gallons 312 million gallons 349 gallons Amount of recycled water used in Palo Alto 113.5 million gallons 81.05 million gallons 63.21 million gallons Wa t e r Volume of stormwater that is captured and reused No data No data No data Percent of vulnerable locations protected from three feet of sea level rise No data No data No data Percent of properties protected from San Francisquito Creek flooding No data No data No data Cl i m a t e A d a p t a t i o n a n d S e a Le v e l R i s e Progress towards sea level rise levee alignments Not launched yet No data USACE feasibility study conducted; no federal interest in funding large levee alignment projects at this time 1 0 2 5 0 Key Performance Indicator 2022 2023 2024 Implementation of Foothills Fire Management Plan mitigation measures Number of residential defensive space re- inspections that are required % of miles of overhead utility line tree trimming in Foothills completed Total miles of electric lines undergrounded in the City of Palo Alto Utilities Foothills Coverage Area % of electric line miles undergrounded in the City of Palo Alto Utilities Foothills Coverage Area 33 homes 65.73% (7.25 miles completed) 2.94 miles 31.5% 18 homes 67.91% (7.49 miles completed) 1.04 miles 11.2% 21 homes 54.49% (2.9 miles completed of 5.3 total miles) 2.27 miles 24.4% City-wide tree canopy coverage No data 26% of urbanized areas 44% including Foothills Nature Preserve area Data forthcoming Native species on City property and in new City landscape projects (to measure biodiversity) No data No new landscape projects to report 935 individual native plants; 22 native species Na t u r a l E n v i r o n m e n t Land area that uses green stormwater infrastructure to treat urban water runoff No data No data No data Diversion rate 91%91%88% Ze r o Wa s t e Zero Waste Plan initiatives implemented No data 18 completed 15 in progress 15 remaining 18 completed 15 in progress 15 remaining * VMT data were not available in Google Environmental Insights Explorer (Google EIE) for 2024. City staff and external experts calculated a preliminary estimate of 2024 VMT based on 2023 per capita VMT, 2024 population for passenger vehicles, and service population for commercial vehicles and buses. 2024 KPI data will be revised when 2024 Google EIE data becomes available. Attachment F: 2023-2025 S/CAP Work Plan Status For more details, see the 2025 Q1-2 S/CAP report1. The 2025 Q3-4 report will be published in February. Item No.Work Plan Item Status 1 City Council, November 3, 2025; Agenda Item A; SR #2505-4672, https://recordsportal.paloalto.gov/WebLink/DocView.aspx? id=83784&dbid=0&repo=PaloAlto 2.2B Rooftop Packaged HVAC Advanced Pilot Design 2.2C Establish Major Employer Partnerships 2.2D Commuter Transportation and EV Charging Strategy 2.2E Identify Regional and State Partnerships 2.3A Transportation and Land Use Policies and Programs 2.3B Housing Element Adoption 2.3C Housing Element Implementation 2.3D Micro-mobility Evaluations 2.3E Launch On-demand Transit Pilot 2.3F Update Bicycle Plan (final draft plan complete, going to Council in early 2026) 2.3G Vision Zero Program (Safety Action Plan completed in 2025, transitioning this item to be to an ongoing item in future reports to reflect ongoing plan implementation) 2.3H Evaluate Expansion of Employer Transportation Demand Management (TDM) 2.3I Proposals for Managing Downtown Parking Availability 2.3J Implement Efficient Downtown Parking Management 2.3K Traffic Signal Improvements & Transit Signal Priority 2.4A Facility Electrification Assessment Plan 2.4B Facility Electrification Assessment Implementation 2.4C Electrify Equipment at City Facilities during Routine Replacement 2.4D Electrify City Vehicle Fleet 2.3E Build City Fleet and Employee Charging Infrastructure 2.4F Publicly Owned Charger Strategic Plan 2.5A Electric Vehicle Strategic Plan Development 3.1A Build awareness of the need for climate action and the benefits the City and its utility can receive and provide 3.1B Drive community actions to achieve S/CAP goals 3.1C S/CAP Survey Program 3.1D S/CAP Reporting 3.1E Build confidence in the City’s electric infrastructure 4A Multi-family and Commercial End Use Study 4B Idea Generation and Additional Research 4C Additional Emissions Reduction Project Prioritization 5A Resource Needs Assessment 5B Funding Alternatives 5C Affordability Study 5D Gas Utility Financial and Operating Plan 8A Maximize Water Conservation and Efficiency 8B Design and Build a Salt Removal Facility for the Regional Water Quality Control Plant 8C Develop a “One Water” Portfolio for Palo Alto 8D Develop a tool for dynamic water planning in the future 8E Complete the Sea Level Rise Vulnerability Assessment 8F Develop a Sea Level Rise Adaptation Plan 8G Begin Design Process for a Levee Project 8H Identify Protection Strategies from Significant Flood Events at Newell Road Bridge 8I Identify Protection Strategies from Significant Flood Events at Pope Chaucer Bridge and Creek 8J Identify Protection Strategies from Significant Flood Events 8K Implement Foothills Fire Management Plan 8L Minimize Fire Hazards Through Zoning 8M Collaborate on Reducing Wildfire Hazards 8N Implement CAL FIRE Public Education Programs 8O Increase Palo Alto’s Tree Canopy and establish a baseline and Key Performance Indicator for carbon storage of tree canopy Canopy Carbon Storage 8P Ensure No Net Tree Canopy Loss for all Projects 8Q Reduce Pesticide Use in Parks and Open Space Preserves 8R Coordinate Implementation of City Natural Environment-Related Plans 8S Support the Green Stormwater Infrastructure (GSI) Plan and incorporate GSI in Municipal Projects 8T Encourage Food Waste Prevention and Require Food Recovery from Commercial Food Generators 8U Promote Residential Food Waste Reduction 8V Champion Waste Prevention, Reduction, Reusables, and the Sharing Economy 8W Provide Waste Prevention Technical Assistance to the Commercial Sector 8X Prioritize Domestic Processing of Recyclable Materials 8Y Eliminate Single-Use Disposable Containers 8Z Expand the Deconstruction and Construction Materials Management Ordinance 8aa Implement Reach Code standard for Low Carbon Construction Materials 1 2026-2027 Sustainability and Climate Action Plan Work Plan The Sustainability and Climate Action Plan (S/CAP) outlines the strategies for achieving the City’s greenhouse gas (GHG) emissions reduction targets, while improving our natural environment, adapting to climate impacts, and increasing livability for Palo Alto residents. The S/CAP outlines goals and key actions in eight areas: Climate Action, Energy, Electric Vehicles, Mobility, Water, Climate Adaptation and Sea Level Rise, Natural Environment, and Zero Waste. The climate action areas of Climate Action, Energy, Electric Vehicles, and Mobility primarily focus on the overarching goals to reduce GHG emissions 80% below 1990 levels and achieve carbon neutrality by 2030. The sustainability areas of Water, Climate Adaptation and Sea Level Rise, Natural Environment, and Zero Waste do not necessarily have a direct impact on greenhouse gas reductions, but have critically important sustainability, public health and safety, regional, resource conservation, and equity benefits that contribute to overall climate action. The 2026-2027 S/CAP Work Plan includes 28 strategies focused on climate action, 16 strategies focused on sustainability and three strategies for overall S/CAP Communications for all areas of the S/CAP. Climate Action Single-Family CA1.Continue Advanced Home Electrification Pilot Program: Offer full suite of program services to support residents with home electrification projects, including turnkey service, technical assistance, and rebates. Offer enhanced rebates and 0% financing to income-qualified households. Goals and funding levels to be developed annually and coordinated with annual budget process. Program will be designed and changed as needed to complement the Bay Area Air District’s Zero-NOx rules (Rules 9-4 and 9- 6). Resource Availability: Fully staffed; goals and funding levels to be considered on timeline in alignment with annual budget process. Explore ways to promote resources for renters, including information on appliances like portable induction cooktops and window-mounted heat pumps that can help renters reduce emissions without asking landlords to make major improvements to the units. Target Completion Date: On- going. 2 CA2.Develop a Residential Electrification as a Service or Similar Financing Pilot for Council Approval: Offer electrification as a service or similar creative financing pilot to residents to support financing of gas to heat pump projects as a pilot of more financially efficient program design. Develop pilot participation agreement, enable tracking of debt repayment in billing system, create process to enroll customer in EaaS. Resource Availability: Program team fully staffed, IT / administrative staffing needs evaluation; goals and funding levels to be considered on timeline in alignment with annual budget process. Target Completion Date: Q3 2026 (tentative, pending staff evaluation). CA3.Enhance Data Tracking for Home Electrification: Enhance existing database to more comprehensively track home electrification status and incorporate data from existing program databases, home assessments, gas data analytics to estimate home gas equipment, and results from voluntary data inputs by residents. This will allow staff to more effectively track program results, perform more targeted outreach, and tailor communications to homeowners based on their building characteristics. Resource Availability: As staff time is available; consultant resources needed, covered within existing budget. Target Completion Date: Q4 2026. Multi-Family CA4.Launch Enhanced Multifamily EV Charging Infrastructure Program: Update program guidelines, incentives (i.e. rebates, financing), and technical assistance offerings for the installation of EV charging infrastructure that supports multifamily residents through: private on-site charging at multifamily properties; publicly-accessible charging at neighborhood e-mobility hubs at public or private properties; or publicly-owned or public-private partnership neighborhood curbside charging installations This work includes complementary programming supporting EV adoption by income- qualified customers and integration of alternative transportation infrastructure, launch in alignment with design guidelines approved by the City Council on November 17, 2025. Resource Availability: Fully staffed; goals and funding levels to be considered on timeline in alignment with annual budget process. Target Completion Date: Launch in 2026. CA5.Develop a Charging-as-a-Service (CaaS) or Similar Financing Pilot for Council Approval: Offer charging-as-a-service (CaaS) or a similar creative financing program to multi-family property owners to support financing of EV infrastructure projects developed through the Multifamily EV Charging Infrastructure Program. Develop pilot participation agreement, enable tracking of debt repayment in billing system, create process to enroll customer in CaaS, and collaborate with EV service providers to 3 identify projects. Resource Availability: Program team fully staffed, IT / administrative staffing needs evaluation; goals and funding levels to be considered on timeline in alignment with annual budget process. Target Completion Date: Launch in 2026. CA6.Continue Affordable Multifamily Building Electrification Incentive Program: Continue pilot electrification program for affordable multifamily properties providing rebates to support the electrification of central water heating and/or space heating equipment in at least 3-5 properties and in-unit electrification of at least one property. The pilot program will provide opportunities to design and test innovative low-interest financing models as well as opportunities to model turn-key multifamily residential electrification. Resource Availability: Fully staffed; goals and funding levels to be considered on timeline in alignment with annual budget process. Target Completion Date: End of 2027. CA7.Launch Multi-Family Electrification Technical Assistance: Design and implement a technical assistance program to address the particular challenges associated with electrification of multi-family buildings. This would complement incentives or other financial assistance provided by other programs (e.g. via residential whole home programs and electrification as a service for multi-family in-unit improvements and via commercial electrification programs for central system improvements). Resource Availability: As staff time is available; goals and funding levels to be considered on timeline in alignment with annual budget process. Explore ways to promote resources for renters, including information on appliances like portable induction cooktops and window-mounted heat pumps that can help renters reduce emissions without asking landlords to make major improvements to the units. Target Completion Date: End of 2027. Non-Residential CA8.Launch Advanced Heat Pump HVAC Program: Launch an advanced Heat Pump HVAC (HPHVAC) program to transition aging gas systems (rooftop units and ground mounted) off of gas in alignment with Council-approved design guidelines. Resource Availability: Fully staffed; goals and funding levels to be considered on timeline in alignment with annual budget process. Target Completion Date: Q4 2026 - Q1 2027. CA9.Develop a Commercial Electrification as a Service pilot or Similar Financing Pilot for Council Approval: Offer electrification as a service or a similar creative financing program to commercial property owners to support financing of gas to heat pump projects as a pilot of more financially efficient program design. Develop pilot participation agreement, enable tracking of debt repayment in billing system, create process to enroll customer in Electrification as a Service (EaaS). Resource Availability: Program team fully staffed, IT / administrative staffing needs evaluation. Target Completion Date: Q3 2027 (tentative, pending staff evaluation). CA10.Launch Workplace EV Charging Pilot: Implement a workplace EV charging program building upon the framework of the multifamily EV charging program. Advance 4 additional analysis as needed on the current state of workplace charging, available electric capacity and commute patterns. Collaborate with the EV Team and Office of Transportation on grant opportunities to promote to commercial property owners. Resource Availability: Fully staffed. Target Completion Date: 2027 CA11.Launch Pilot Program for Electrification of Centralized Water Heaters and Boilers: Provide incentives for a select number of large equipment replacements to collect performance data, identify barriers to electrification, and compare cost impacts of like-for-like versus electric options, including effects on customer utility bills. Resource Availability: As staff time is available; goals and funding levels to be considered on timeline in alignment with annual budget process. Target Completion Date: 2027. CA12.Establish One or More Partnerships with Large Commercial Facility Owners: Develop custom sustainability partnerships with at least one major employer, such as creative financing options, electrification pilots with large facilities, and support of corporate electrification efforts. Resource Availability: Fully staffed; goals and funding levels to be considered on timeline in alignment with annual budget process. Target Completion Date: 2026. Regulatory, Analytics, Finances, and Strategy CA13.Develop S/CAP Funding and Financing Strategies for City Council Consideration: Using insights and models developed for S/CAP Funding Study, City staff will develop potential funding and financing strategies for City Council consideration. Policies will consider different timelines, the effect of regulatory requirements, and equipment focus to provide a range of policy alternatives. Analyses will consider resource needs, additional revenue requirements, and potential impact on utility rates. Resource Availability: Fully staffed, to be absorbed from existing budgets. Target Completion Date: Q4 2026. CA14.Develop Potential Regulatory Measures to Drive Climate Action: Develop a list of potential regulatory measures to drive electrification, energy efficiency, and EV adoption in Palo Alto for consideration by City Council, in addition to implementation of Reach Codes that apply. Seek regulatory measures that could serve as the “regulatory backbone” of a decarbonization strategy (e.g. a Building Emissions Savings Ordinance that would require compliance at the time of residential or commercial property listing or a commercial Building Performance Standard). Consider the programs needed to make such mandates work, such as incentives and technical assistance programs to help building owners meet regulatory requirements. Resource Availability: Fully staffed. Target Completion Date: Q4 2026. CA15.Develop Carbon Neutrality Strategies for City Council Consideration: Develop potential strategies for City Council consideration for achieving community carbon neutrality by 2030. Resource Availability: Fully staffed. Target Completion Date: Q4 2026. 5 CA16.Develop Potential Strategies for Cost-Based Pricing of Non-Electric Decarbonization and Inefficient Electrification: Based in industry research and legal analysis, develop potential strategies for Council consideration for reflecting the cost of decarbonization without electrification (e.g. via renewable fuels like biogas and hydrogen) and the costs of electrification that does not incorporate efficient electrification practices on distribution costs (e.g. due to 400A panel upgrades for higher demand appliances than are needed to serve the electrified uses, leading to the need to build more electric distribution capacity). Examples of potential strategies for consideration include electrical capacity fees and voluntary carbon pricing reflecting the cost of decarbonizing with renewable fuels). Resource Availability: Fully staffed. Some consulting budget may be needed, to be considered via annual budget process. Target Completion Date: Q4 2026. CA17.Reduce Permitting, Interconnection, and Other Barriers to Adoption of Vehicle and Building Electrification and Flexible Energy Technologies for Reliability and Resiliency: Reduce barriers to adoption of vehicle and building electrification technologies, flexible energy technologies for reliability and resiliency, and efficient electrification best practices. Focus on planning and zoning rules, utility rules and regulations, fees, and potential barriers that could be relieved through climate program services such as technical assistance. Look for efficient project approaches, such as bundling multiple electric readiness projects together at once and exploring different approaches to electric panel load calculations, such as by using smart meter data. Develop and implement annual list of priority areas for consideration and timeline for evaluation of potential options. Resource Availability: As staff time is available, higher level of effort possible with resources. Target Completion Date: On- going. CA18.Develop Public Charging Siting and Business Models: As needed, perform siting analysis and develop business models for public charging on public and private properties to support multi-family, workplace, and visitor charging needs. Work is expected to be performed primarily using in-house staff with light consulting assistance as needed. Resource Availability: Fully staffed; some consulting budget may be needed, to be considered via annual budget process. Target Completion Date: Q1 2027. Infrastructure CA19.Continue Grid Modernization: Continue electric distribution system grid modernization program with the completed pilot informing program implementation, at the pace needed to provide adequate capacity for building and vehicle electrification. Resource Availability: Fully staffed; project and consulting budgets to be requested via annual budget process as needed. Target Completion Date: On- going. 6 CA20.Develop Gas Transition Management Strategies: Complete study of gas system physical and financial operation under various electrification scenarios, discuss relevant findings with policy makers, and develop and implement any policies, programs, or operational practices needed to ensure safe, financially viable, and equitable operation of the gas utility as electrification proceeds. Resource Availability: Fully staffed; project and consulting budgets to be requested via annual budget process as needed. Target Completion Date: On-going. Mobility CA21.Achieve Benchmarks for Bicycle and Pedestrian Capital Improvement Projects: South Palo Alto Bikeways Demonstration Project: Upgrade crossings and bicycle facilities on East Meadow Drive and Fabian Way to improve safety, especially for students traveling to school. Information learned throughout the demonstration project will be incorporated into an update of the Palo Alto Safety Action Plan and will inform permanent design changes to the corridor. Resource Availability: Project is fully funded but requires staffing. Target Completion Date: Pilot construction anticipated for summer 2027. Churchill Avenue Enhanced Bikeway Project: Improve walking and bicycling on Churchill Avenue with a multi-use path, intersection improvements, and landscaping. Project work is focused between the Caltrain tracks and El Camino Real. Target Completion Date: Construction is scheduled to finish by fall 2026. Quarry Road Extension at El Camino Park: Develop underused portion of El Camino Park to provide a direct connection from El Camino Real to the Palo Alto Transit Center. Project is led by Stanford. Target Completion Date: By fall 2027, project will complete the Caltrans process for the Encroachment Permit and prepare plans, specifications, and estimate construction documents for the project in both Caltrans and City right-of-way. In addition, the team will perform both a bike and transit operations assessment and recommend operational scenarios to inform future bikes, bus and shuttle operations in and around the Transit Center. South Palo Alto Bike/Ped Connectivity: Identify locations and design concepts for additional east-west bicycle and pedestrian crossings of the Caltrain railroad tracks in the southern part of the City. Council selected the El Dorado Avenue option (also called Alternative A) for further planning and development work. Two variants of Alternative A were advanced: A1 (signalized crossing of Alma Street at El Dorado Avenue) and A2 (tunnel under both Alma Street and the Caltrain tracks). Additional community engagement activities are planned for early 2026 to support the decision- making process and incorporate public feedback on the alternatives in the vicinity of El Dorado Avenue. Target Completion Date: Study will complete following Council 7 adoption of a final report in spring 2027, and next steps include securing grant funding for environmental documentation, final design and construction. CA22.Implement Micromobility Feasibility Study Recommendations: Pursue next steps for a bike/e-bike/e-scooter share pilot program or other recommendation as advised by the Micromobility Feasibility Study, to be finalized in early 2026. Resource Availability: Fully staffed and partially funded, need to evaluate based on recommendation in the study. Target Completion Date: 2027. CA23.Continue Traffic Signal Operations and Multimodal Improvements: Maintain and modernize current traffic signals and central management systems. Use technology to improve traffic operations and safety. Work with transit providers on transit signal priority where feasible. Projects that include operational improvements include the Quarry Road Intelligent Transportation Systems and Operations Improvement (in-progress), Citywide Central Management and ITS Updates (Ongoing), Citywide Arterial Operations Optimization (on-going pending staff resources), and Automated Traffic Signal Performance Measure (ATSPM) implementation (near future). Each of these projects includes multimodal improvements and optimization to improve operations and reduce emissions. Resource Availability: Mostly funded, long-term funding needs being evaluated. Target Completion Date: On-going. CA24.Continue Implementing the Housing Element / Land Use Planning and Policy: Implement the goals, policies, and programs in the City's 2023-2031 Housing Element of the Comprehensive Plan to improve the City's jobs-housing balance and to reduce vehicle miles traveled (VMT). Implementation will continue creating a housing density and land use mix that supports transit and non-SOV (Single Occupancy Vehicle) transportation modes, such as efforts on land use and area plans, housing plans, development standards, and affordable housing projects. Resource Availability: Funding via grants and annual City budget process. Target Completion Date: 2030. CA25.Update City’s Traffic Calming Policy and Process: Update the City’s Traffic Calming Process to provide more clarity on traffic calming design details and criteria for consideration in relation to engineering judgment. Resource Availability: Proceed as staff time available. Target Completion Date: End of 2027. Municipal Assets and Operations CA26.Develop and Begin Implementing a City Facility Electrification Plan: Building on the citywide Facilities Assessment, create a multi-year plan to begin replacing fossil fuel use in City buildings in alignment with S/CAP goals, and begin implementing through the Capital Improvement Program. Target Completion Date: On-going. 8 CA27.Electrify City Vehicle Fleet when Feasible: Convert all Palo Alto municipal vehicles to EVs when feasible and when the replacement is operationally acceptable. Support state policy efforts to electrify fleet vehicles, including delivery trucks. Determine municipal EV charging needs to ensure adequate EV charging infrastructure for City fleet vehicles. Where possible, explore a shared use of fleet chargers that would allow for City staff to use the fleet chargers during the day. Also explore options for providing EV chargers in employee parking lots. Resource Availability: Fully staffed; EV acquisition evaluated with each scheduled vehicle replacement, additional funding needed for certain vehicle classes. Funding for charging infrastructure evaluated project by project and funded through annual budget process. Target Completion Date: On-going. CA28.Explore the Electric Capacity Needs of the Palo Alto Airport for Electric Aviation: Explore the electric capacity needs of the Palo Alto Airport to ensure adequate infrastructure to accommodate electric aviation, as well as electric fleet vehicles. Resource Availability: Proceed as staff time is available. Target Completion Date: 2030. Sustainability Water S1.Implement Water Efficiency and Conversation Measures: Deploy water efficiency and conservation measures that achieve water savings above and beyond what is required by state regulations. Resource Availability: Fully staffed and funded. Target Completion Date: 2030. S2.Improve Recycled Water Quality through Salt Removal: Improve the quality of recycled water produced at the Regional Water Quality Control Plant. Resource Availability: Fully staffed and funded. Target Completion Date: 2028. S3.Identify and Implement Water Distribution System Adaptation Measures: Identify risks from climate change to the water distribution system and implement solutions. Resource Availability: Fully staffed; funding to implement projects not identified. Target Completion Date: 2026. Sea Level Rise S4.Finalize Partnership Agreement with Santa Clara County on SB272 Regional Shoreline Adaptation Plan Requirements to Develop a Regional Vulnerability Assessment and Adaptation Plan: If grant funding is received, this project is anticipated to identify and align county-wide sea level rise adaptation planning projects. Resource Availability: To be determined. Target Completion Date: 2027. S5.Update the City's Sea Level Rise Adaptation Policy to Include Sea Level Rise Planning Decision-Making Points in the City: Update the City's Sea Level Rise Adaptation Policy 9 to include newest technical information, best practices, and decision-making points in the City where sea level rise and shallow groundwater changes should be considered for new projects and operations/maintenance. Resource Availability: Existing funding. Target Completion Date: 2027. S6.Complete Construction and Begin Monitoring the Palo Alto Horizontal Levee Pilot Project (PAHLPP): The PAHLPP will be the first Bay Area horizontal levee to be hydrologically connected to the Bay. The project will inform future potential levee improvements that expand habitat benefits. The City and partner agencies will advance monitoring and research following project completion, anticipated in early 2026. Resource Availability: Existing funding. Target Completion Date: 2026. S7.Continue Partnership with Valley Water on Sea Level Rise / Shoreline Levee Improvement Efforts: Track developments with Valley Water and Army Corps of Engineers. Resource Availability: Staffing available, future funding needed. Target Completion Date: 2027. Wildfire Protection S8.Implement the Foothills Fire Management Plan: Implement the Foothills Fire Management Plan to balance conservation of natural resources with reduction of fire hazards especially in open space areas. Priority implementation areas include: Mitigating fire risk from electrical equipment through projects such as moving the overhead electric lines underground in areas generally within the City limits west of Highway 280, known as the Foothills area, and mitigating fire risk from vegetation, including through the removal of targeted Eucalyptus groves in specific project areas. Resource Availability: General Funds, Staffing, CIP EL-21001. Target Completion Date: On-going. Natural Environment S9.Increase Tree Canopy in South Palo Alto: Develop programs to plant trees in South Palo Alto to increase tree canopy – that will be integrated with traditional tree planting programs and Green Stormwater Infrastructure programs – and provide carbon sequestration, improve water quality, capture stormwater when feasible, and reduce the urban heat island effect. Resource Availability: Partially funded, Staff available as time permits. Target Completion Date: On-going. S10.Reduce Pesticide Use in Parks and Open Space Preserves: Continue to review the use of pesticides in all parks and open space preserves to identify opportunities to further reduce and eliminate the use of pesticides. Resource Availability: Staff available as time permits. Target Completion Date: On-Going. Green Stormwater Infrastructure S11.Construct a Green Stormwater Infrastructure Project at a City of Palo Alto Park: A green stormwater infrastructure (GSI) project proposed at Juana Briones Park will be 10 designed and constructed. The GSI project will treat an estimated drainage area of 14.8 acres, 6.6 acres of which are impervious. Proposed design will include community features for park users during dry periods throughout the year. Resource Availability: Funding includes U.S. EPA grant to be supplemented by Stormwater Management Fund as needed. Target Completion Date for Design: September 2027. S12.Increase Green Stormwater Infrastructure on City of Palo Alto Property and/or Right- of-Way: Evaluate planned Capital Improvement Program projects for integration of green stormwater infrastructure to treat additional impervious surfaces. Resource Availability: Existing staff resources. Target Completion Date: Ongoing. S13.Quantify Land Area that Uses Green Stormwater Infrastructure to Treat Urban Water Runoff: Quantify the amount of land area in the City of Palo Alto that uses green stormwater infrastructure to treat urban water runoff. This includes quantifying the amount of impervious surfaces, and will be used as a baseline for future S/CAP work. Resource Availability: Consultant will be contracted to support City staff. Target Completion Date: December 2026. Zero Waste S14.Champion Waste Prevention, Reduction, Reusables, and the Sharing Economy: Create new collaborations with city departments (such as libraries) and community organizations to advance reuse and repair initiatives, including textile re-use and recycling. Resource Availability: Existing staff resources and outreach funding. Target Completion Date: 2027. S15.Eliminate Single-Use Disposable Containers and Reduce Disposable Foodware: Assess compliance with existing foodware ordinance requirements, identify key challenges and barriers to reducing additional single-use disposables and to requiring reusable alternatives. Develop new comprehensive plan to effectively expand and strengthen the foodware ordinance. Resource Availability: Funded for Ordinance Requirement, need additional funding for implementation of future requirements. Target Completion Date: 2027. S16.Promote Food Waste Reduction: Maintain and enhance ongoing public education and outreach initiatives aimed at promoting food waste reduction throughout the community. These efforts will also support and ensure continued compliance with the requirements of Senate Bill 1383 (2016). Messaging strategies will be aligned with sustainability goals and tailored to foster greater community engagement and behavioral change. Resource Availability: Existing staff resources and outreach funding. Target Completion Date: On-going. 10 11 Communications C1.Build Awareness about Sustainability and Climate Action and City Programs Available to the Community. Achieve widespread awareness about sustainability and climate action, the 80 x 30 goal, City services and programs, and achievements. Collaborate with partnerships and volunteers to support grassroots outreach helping to build residents, commercial customers, and contractors awareness. Resource Availability: Fully staffed, partially funded. Target Completion Date: On-going. C2.Drive Community Actions to Achieve S/CAP Goals: Run effective marketing and outreach campaigns that seek to increase program participation and drive community action in initiatives to achieve S/CAP goals. Resource Availability: Fully staffed, partially funded. Target Completion Date: On-going. C3.S/CAP Data Collection and Annual Reporting: Track community sentiment and engagement, including key performance indicators, through tools such as surveys and on-line analytics, and program analysis to guide decision making. Annually develop, implement, and report out on S/CAP communications objectives and progress. Resource Availability: Fully staffed, partially funded. Target Completion Date: On-going. Index of S/CAP Key Actions and the 2026-2027 S/CAP Work Items that Implement them S/CAP Key Action Title 2026-2027 S/CAP Work Plan Item(s) C1. Provide Building and Transportation Emissions Consultations for Residents (On-going item initiated in 2023-2025 S/CAP Work Plan) C2. Develop Major Employer Custom Emissions Reduction Plans CA12. Establish One or More Partnerships with Large Commercial Facility Owners C3. Study Additional Key Actions Needed for 80 x 30 CA11. Launch Pilot Program for Electrification of Centralized Water Heaters and Boilers C4. Study Staffing and Budgetary Needs CA13. Develop S/CAP Funding and Financing Strategies for City Council Consideration CA20. Develop Gas Transition Management Strategies C5. Study Funding Alternatives C6. Conduct an Electrification Affordability Study C7. Study Carbon Neutrality Options CA15. Develop Carbon Neutrality Strategies for City Council Consideration 12 C8. Accelerate GHG reductions through Mandates or Price Signals CA8. Launch Advanced Heat Pump HVAC Program CA10. Launch Workplace EV Charging Pilot CA14. Develop Potential Regulatory Measures to Drive Climate Action CA16. Develop Potential Strategies for Cost-Based Pricing of Non-Electric Decarbonization and Inefficient Electrification E1. Reduce GHG emissions in Single-Family Appliances and Equipment CA1. Continue Advanced Home Electrification Pilot Program CA2. Develop a Residential Electrification as a Service or Similar Financing Pilot for Council Approval CA3. Enhanced Data Tracking for Home Electrification E2. Reduce GHG emissions in Non-Residential Equipment CA8. Launch Advanced Heat Pump HVAC Program CA9. Develop a Commercial Electrification as a Service or Similar Financing Pilot for Council Approval CA12. Establish One or More Partnerships with Large Commercial Facility Owners E3. Reduce Gas Use in Major Facilities CA8. Launch Advanced Heat Pump HVAC Program CA9. Develop a Commercial Electrification as a Service or Similar Financing Pilot for Council Approval CA12. Establish One or More Partnerships with Large Commercial Facility Owners E4. Reduce Natural Gas Use at City facilities CA8. Launch Advanced Heat Pump HVAC Program CA9. Develop a Commercial Electrification as a Service or Similar Financing Pilot for Council Approval CA26. Develop and Begin Implementing a City Facility Electrification Plan E5. Support Income-Qualified Residents and Vulnerable Businesses with Electrification CA1. Continue Advanced Home Electrification Pilot Program 13 CA2. Develop a Residential Electrification as a Service or Similar Financing Pilot for Council Approval CA3. Enhanced Data Tracking for Home Electrification CA6. Continue Affordable Multifamily Building Electrification Incentive Program CA7. Launch Multi-Family Electrification Technical Assistance E6. Develop Electric Rate Options (Completed in 2023-2025 S/CAP Work Plan) E7. Use Codes and Ordinances to Facilitate Electrification CA8. Launch Advanced Heat Pump HVAC Program CA17. Reduce Permitting, Interconnection, and Other Barriers to Adoption of Vehicle and Building Electrification and Flexible Energy Technologies for Reliability and Resiliency E8. Electric Grid Modernization Plan CA17. Reduce Permitting, Interconnection, and Other Barriers to Adoption of Vehicle and Building Electrification and Flexible Energy Technologies for Reliability and Resiliency CA19. Continue Grid Modernization CA28. Explore the Electric Capacity Needs of the Palo Alto Airport for electric aviation E9. Additional Electrification Opportunities in Commercial and Multi-Family Buildings CA8. Launch Advanced Heat Pump HVAC Program CA9. Develop a Commercial Electrification as a Service or Similar Financing Pilot for Council Approval EV1. Raise Awareness of Alternative Transportation Modes, Micromobility, and EVs. CA4. Launch Enhanced Multifamily EV Charging Infrastructure Program CA5. Develop a Charging-as-a-Service (CaaS) or Similar Financing Pilot for Council Approval CA10. Launch Workplace EV Charging Pilot EV2. Collaborate to Promote EV Adoption Regionally (On-going item initiated in 2023-2025 S/CAP Work Plan) EV3. Promote EV Adoption and Alternative Commutes for Commuters CA10. Launch Workplace EV Charging Pilot 14 CA12. Establish One or More Partnerships with Large Commercial Facility Owners EV4. Facilitate the Adoption of EVs, E-bikes and other Light EVs. CA4. Launch Enhanced Multifamily EV Charging Infrastructure Program EV5. Promote Alternative Transportation Modes and Infrastructure to Support Adoption CA4. Launch Enhanced Multifamily EV Charging Infrastructure Program CA6. Continue Affordable Multifamily Building Electrification Incentive Program CA7. Launch Multi-Family Electrification Technical Assistance EV6. Expand EV Charging Access for Multi-Family Residents CA4. Launch Enhanced Multifamily EV Charging Infrastructure Program CA5. Develop a Charging-as-a-Service (CaaS) or Similar Financing Pilot for Council Approval CA18. Develop Public Charging Siting and Business Models EV7. Improve EV Charging Access for Income- Qualified residents CA4. Launch Enhanced Multifamily EV Charging Infrastructure Program CA5. Develop a Charging-as-a-Service (CaaS) or Similar Pilot for Council Approval CA6. Continue Affordable Multifamily Building Electrification Incentive Program CA7. Launch Multi-Family Electrification Technical Assistance EV8. Ensure EV Charging Capacity Supports EV Growth CA10. Launch Workplace EV Charging Pilot CA18. Develop Public Charging Siting and Business Models EV9. Electrify Municipal Vehicle Fleet CA27.Electrify City Vehicle Fleet when Feasible EV10. Support Policy to Electrify Fleet Vehicles CA27.Electrify City Vehicle Fleet when Feasible M1. Increase Active Transportation and Transit for Local Work Trips CA21. Achieve Benchmarks for Bicycle and Pedestrian Capital Improvement Projects CA22. Implement Micromobility Feasibility Study Recommendations CA25. Update City’s Traffic Calming Policy and Process 15 M2. Expand Availability of Transit and Shared Mobility Services CA21. Achieve Benchmarks for Bicycle and Pedestrian Capital Improvement Projects CA22. Implement Micromobility Feasibility Study Recommendations CA25. Update City’s Traffic Calming Policy and Process M3. Implement the Bicycle and Pedestrian Transportation Plan CA21. Achieve Benchmarks for Bicycle and Pedestrian Capital Improvement Projects M4. Improve Transportation Demand Management for Employees and Residents M5. Implement Smart Parking Infrastructure in Public Garages and Parking Fees in Business Districts M6. Study Land Use and Transportation M7. Continue to Implement the City’s Housing Element CA24. Continue Implementing the Housing Element / Land Use Planning and Policy M8. Improve Transit and Traffic Flow CA23. Continue Traffic Signal Operations and Multimodal Improvements M9. Create Housing Density and Land Use Mix that Supports Transit and Non-SOV Transportation CA24. Housing Element Implementation / Land Use Planning and Policy M10. Encourage Reductions in GHGs and VMT W1. Maximize Water Conservation and Efficiency S3. Identify and Implement Water Distribution System Adaptation Measures W2. Build a Salt Removal Facility S2. Improve Recycled Water Quality through Salt Removal W3. Implement One Water Portfolio Projects S1. Implement Water Efficiency and Conversation Measures W4. Develop a Dynamic Water Planning Tool (Completed in 2023-2025 S/CAP Work Plan) S1. Complete a Sea Level Rise Vulnerability Assessment (Completed in 2023-2025 S/CAP Work Plan) S2. Implement a Sea Level Rise Adaptation Plan S4. Finalize Partnership Agreement with Santa Clara County on SB272 Regional Shoreline Adaptation Plan Requirements to Develop a Regional Vulnerability Assessment and Adaptation Plan. 16 S5. Update the City's Sea Level Rise Adaptation Policy to Include Sea level Rise Planning Decision Making points in the City. S3. Begin Design Process for a Levee Project S6. Complete Construction and Begin Monitoring the Palo Alto Horizontal Levee Pilot Project (PAHLPP). S7. Continue Partnership with Valley Water on SLR / Shoreline Levee Improvement Efforts S4. Complete Bridge improvements and Identify Protection Strategies from Flood Events S7. Continue Partnership with Valley Water on SLR / Shoreline Levee Improvement Efforts S5. Implement the Foothills Fire Management Plan S8. Implement the Foothills Fire Management Plan S6. Minimize Fire Hazards Through Zoning (On-going item initiated in 2023-2025 S/CAP Work Plan) S7. Collaborate on Reducing Wildfire Hazards S8. Implement the Foothills Fire Management Plan S8. Implement CAL FIRE Public Education Programs (On-going item initiated in 2023-2025 S/CAP Work Plan) N1. Increase Palo Alto's Tree Canopy S9. Increase Tree Canopy in South Palo Alto N2. Ensure No Net Tree Canopy Loss for all Projects (On-going item initiated in 2023-2025 S/CAP Work Plan) N3. Reduce Pesticide Use in Parks and Open Space Preserves S10. Reduce Pesticide Use in Parks and Open Space Preserves N4. Enhance Pollinator Habitat N5. Establish a Carbon Storage of Tree Canopy Baseline and KPI S9. Increase Tree Canopy in South Palo Alto N6. Maximize Biodiversity and Soil Health N7. Coordinate Implementation of City Natural Environment-Related Plans (On-going item initiated in 2023-2025 S/CAP Work Plan) N8. Expand Water Efficient Landscape Ordinance (WELO) Requirements N9. Phase out Gas-Powered Lawn and Garden Equipment (Addressed by CA Assembly Bill 1346 banning the sale of new gas-powered small off-road engines) N10. Support the Green Stormwater Infrastructure Plan S11. Construct a Green Stormwater Infrastructure Project at a City of Palo Alto Park 17 S13. Quantify Land Area that Uses Green Stormwater Infrastructure to Treat Urban Water Runoff N11. Incorporate Green Stormwater Infrastructure in Municipal Projects S12. Increase Green Stormwater Infrastructure on City of Palo Alto Property and/or Right-of-Way ZW1. Encourage Food Waste Prevention and Require Food Recovery from Commercial Food Generators (On-going item initiated in 2023-2025 S/CAP Work Plan) ZW2. Promote Residential Food Waste Reduction S16. Promote Food Waste Reduction ZW3. Champion Waste Prevention, Reduction, Reusables, and the Sharing Economy S14. Champion Waste Prevention, Reduction, Reusables, and the Sharing Economy ZW4. Provide Waste Prevention Technical Assistance to the Commercial Sector (On-going item initiated in 2023-2025 S/CAP Work Plan) ZW5. Prioritize Domestic Processing of Recyclable Materials (Completed in 2023-2025 S/CAP Work Plan with on- going review) ZW6. Eliminate Single-Use Disposable Plastics S15. Eliminate Single-Use Disposable Containers and Reduce Disposable Foodware ZW7. Expand the Deconstruction and Construction Materials Management Ordinance (On-going item initiated in 2023-2025 S/CAP Work Plan) ZW8. Implement Reach Code standard for Low Carbon Construction Materials (Completed in 2023-2025 S/CAP Work Plan) Attachments H through M for Staff Report 2512-5688 are available at the below links: Attachment H: S/CAP Funding and Financing Study Attachment I: EV Charger Needs Assessment Attachment J: Single-family Building Sector Study Attachment K: Multi-family Building Sector Study Attachment L: Non-Residential Building Sector Study Attachment M: Funding Source Survey Item No. 8. Page 1 of 1 9 2 2 5 City Council Supplemental Report From: Brad Eggleston, Director Public Works/City Engineer Meeting Date: February 2, 2026 Item Number: 8 Report #:2601-5858 TITLE SUPPLEMENTAL REPORT: Review the 2024 Greenhouse Gas Inventory and S/CAP Key Performance Indicators Annual Progress Report, and Approve the 2026-2027 S/CAP Work Plan and Receive Six S/CAP Studies Recommended by the Climate Action and Sustainability Committee; CEQA Status: Review GHG Inventory and Key Performance Indicators: Not a Project; Potential Environmental Impacts of the S/CAP Work Plan were Studied in the June 5, 2023 S/CAP Addendum to the 2017-2031 Comprehensive Plan EIR; this Project is also Exempt Pursuant to CEQA Guidelines Section 15183 BACKGROUND The attached summary of the public workshop held December 13, 2025 by the Climate Action and Sustainability Committee (CASC), and which was mentioned in the Executive Summary, Analysis, and Fiscal Impact sections of the report, was inadvertently not attached to the initial staff report ATTACHMENTS Supplemental Attachment A: Summary of December 13, 2025 CASC Workshop APPROVED BY: Brad Eggleston, Director Public Works/City Engineer BluePoint Planning 12/22/25 1 1 0 4 3 2 S/CAP Priorities Workshop Summary On December 13, 2025, Palo Alto hosted a Climate Action Priorities public workshop aimed at identifying the types of mechanisms that Council and the public is interested in using to advance the Sustainability and Climate Action Plan ( S/CAP) 80x30 goals related to climate action for the residential sector. This workshop was also held as part of a special public meeting of the Climate Action and Sustainability Committee (Committee). The three council members of the Committee (Vicki Veenker, Patrick Burt, and George Lu) and Commissioner Rachel Croft from the Utilities Advisory Commission attended the meeting, with an additional 20 members of the public in attendance. The public workshop was also designed to promote greater understanding of tradeoffs in financing and regulations to achieve the City’s 80x30 goals. The workshop focused on an interactive tabletop game named “Decarb Quest.” This game asked participants to pick at random cards representing different resident types and characteristics, home types, and home triggers. From there, participants must decide the strategy or combination of strategies that would best promote electrification in each scenario. Participants could also design additional strategy cards for scenarios in which they felt the suite of potential strategies was not sufficient. The workshop followed the following agenda: Introductions Climate Action Priorities Presentation Breakout Group Discussion o Benefits and challenges of mandates and incentives Evaluating Decarbonization Programs Presentation Breakout Group Discussion o Decarb Quest game on potential tools and approaches for electrification Public Comment Closing Comments BluePoint Planning 12/22/25 2 1 0 4 3 2 Wall Graphic Recording Below is the wall graphic recording from the workshop that captured high-level takeaways from breakout group conversations. BluePoint Planning 12/22/25 2 1 0 4 3 2 BluePoint Planning 12/22/25 3 1 0 4 3 2 Mandates and Incentives Presentation and Discussion Ahead of the first breakout group discussion on mandates and incentives, Jonathan Abendschein, Assistant Director of Climate Action, delivered a presentation on the S/CAP Electrification Funding Study, discussing the quantification of total benefits to the Palo Alto community over time from switching from gas to electric appliances and some initial considerations for utilizing incentives and mandates to accomplish electrification. Jonathan then took questions and comments from the Council Members present (full list of comments is listed under the detailed notes). Participants were then asked to discuss the benefits and drawbacks of utilizing incentives vs. mandates to accomplish 80% reduction in GHG emissions by 2030. Summary of Participant Comments Below are the takeaways from the breakout groups discussion: There is a place for both mandates and incentives to reach 80x30 goals Storytelling and effective communication is essential to support mandates and incentives o Mandates need to be paired with communication training; if people believe that their contributions are important, more people are likely to follow suit o Voluntary incentives give people agency and encourage personal storytelling It is important to quantify health savings as part of the discussion about avoided costs from electrification City should utilize mandates and include incentives as a stop gap measure o City can set health and safety standards/ mandates that must be met, and then use incentives to get people to reach those standards Incentives should focus on less affluent residents with higher need o City must do incentives o Some groups stated that incentives should be income qualified Programs that support incentives and mandates should be designed to reduce friction as much as possible for residents Workforce needs to be involved in leading electrification efforts BluePoint Planning 12/22/25 4 1 0 4 3 2 Detailed Comments Below are additional notes from Council Members about the Decarbonization Strategies Presentation. Council Member Pat Burt Emphasize health and safety benefits of electric appliances o Appealing to community for support for programs based on climate impacts will capture chunk of community; more people spurred to action by health benefits o Should quantify economics of health benefits in study and feature these benefits to community o Safety should be a priority element EV trips likely account for greater share of trips than reflected in the EV ownership rate (of 16%) o Around 50% of purchases are EVs o Most people who purchase EVs use them more than their older car o Trends in equipment cost moving forward may decline o Wondered to what degree we are basing funding projections on current costs of electric appliances Council Member George Lu Can the funding study take into account a decrease in EV charging installation costs/ HPWH costs over time? o Is there a scenario where we can count on some national technology curve How are offsets assessed to users? o Offsets could be used more creatively as stick or carrot Vice Mayor Vicki Veenker Consider savings from gas transition study from Air District Implementation of Air District rules could save 89 deaths annually and $890 mil per year BluePoint Planning 12/22/25 4 1 0 4 3 2 BluePoint Planning 12/22/25 5 1 0 4 3 2 Electrification Strategies, Discussion, Decarb Quest Game Before the second breakout group, which focused on electrification strategies, Jonathan delivered a presentation on considerations for electrification strategies, including financing options for incentives. This included considerations for how a Building Emissions Savings Ordinance (BESO) could operate, and an overview of financing cash flows for Electrification as a Service (EaaS) for Palo Alto residents. Jonathan then took questions from the Council Members present (full list of comments is listed under the detailed notes). Participants then rearranged into different breakout groups and completed an interactive tabletop game, “Decarb Quest.” This game asks participants to pick at random cards representing different resident types and characteristics, home types, and triggers for electrification upgrades. From there, participants must decide the strategy or combination of strategies that would best promote electrification in each scenario. Participants fill out the game board, picking at random from the deck two resident characteristics, a home type card, and a trigger for what may be happening to that home type (e.g. selling house, wanted to remodel, etc.). Participants then score how well that suite of strategies will encourage the resident with that home type to electrify, using game pieces to score on a scale of 1-4. Strategies that score a 1 would mean that residents would not electrify, and 4 means they would certainly electrify. Participants could also design additional strategy cards for scenarios in which they felt the suite of potential strategies was not sufficient. Below are images of the blank board and cards that participants were given. The images of the filled out boards from the game are included below at the end of this summary. BluePoint Planning 12/22/25 6 1 0 4 3 2 Decarb Quest Game Board Decarb Quest resident characteristic, housing characteristic and housing trigger cards BluePoint Planning 12/22/25 7 1 0 4 3 2 Summary of Participant Comments Below are the takeaways from the breakout groups discussion: Overall, the BESO and EaaS were popular strategies o BESO and EaaS work well for more affluent, singly family (SF) households, especially those doing remodels or large projects o May need to increase cost for BESO-funded upgrades for buyers o Traditional financing and EaaS may work for those with affordability issue o City could host investment fund to help support EaaS program Communication and storytelling must be part of BESO and EaaS programs o Emphasize that natural gas prices will rise and the City needs to protect residents’ health; by electrifying, the City will end up with lower, cheaper utility bills and improve residents’ health o Emphasize that electrification increases home value o Publicize existing programs more! The renter segment is difficult to reach o Mandates would work better for renters; renters need to be empowered to reach landlords o There are some other residents and scenarios that are difficult to electrify (e.g. a young, financially constrained family who is selling their house; landlord with renters who are high energy users and have a broken appliance) Multifamily (MF) homes typically have access to a traditional financing qualification In some scenarios it may make more sense for buyers to complete/ pay for energy assessment as part of BESO; buyer would then be required to upgrade to code when doing a construction project Require those selling their home to future proof it to become all-electric Implement the Watt Diet (strategic selection of electric products and load sharing among devices) to reduce the need for panel upgrades o City could price amp services differently, with higher watt panels costing more Technical assistance is a throughline for many electrification strategies Homeowners associations (HOAs) are a different scenario than rental apartments because there are so many hoops to jump through o Incentives would not be the driver of upgrades o EaaS may be a partial solution but there may still be a gap for HOAs City could pool electrification projects for more income-constrained residents Should be easier for residents to use electric vehicles (EVs), especially for MF properties o They can be a battery for homes and support resilience o Time of use (TOU) rates could be mandated; they would support EV usage and make EVs more affordable BluePoint Planning 12/22/25 8 1 0 4 3 2 Additional Strategies Below is the full list additional strategies that participants brainstormed during the Decarb Quest game: BESO without public reporting For BESO, the seller can do the energy assessment but the buyer is required to upgrade (as opposed to the seller) Progressive loans (particularly for financially constrained households) Building owner makes bulk electric appliance purchase at reduced upfront cost (for MF renters) Building performance standard– each home has an environmental rating o May not be public for homeowners o Building performance standards (BPS) may work well for larger, MF properties, and would give these properties a timeline to electrify Pool electric project scopes for multiple homes City fund for electrification as service to reduce costs to residents o Some funds would be invested and get returns, some given to EaaS o This would help subsidize financially constrained residents EV charging in City lots adjacent to MF properties Streetside charging Portable induction cooktops Use City investment funds so City can be full financer of EaaS (City already covers loans under GoGreen) Education and communication around electrification benefits must underpin all strategies o Lawn signs can promote emergency heat pump water heater (HPWH) replacements and GoGreen financing Below are additional notes from Council Members about the Decarbonization Strategies Presentation. Vice Mayor Vicki Veenker Very interested in what has traction with residents Strategies aren’t necessarily alternatives, but can be combined– what is interplay between the strategies? Interested in understanding BESO ordinance Sees potential for Electrification as a Service Council Member Pat Burt Under EaaS we have lender involvement; to what extent would that be friction point? How simple could that become? BluePoint Planning 12/22/25 9 1 0 4 3 2 o Palo Alto has simplified permitting for solar o Jonathan: there is discussion regionally on lender friction Where does funding come from for existing electrification and energy efficiency (EE) efforts and what legal latitude can apply? o Jonathan: electric public benefits funding is collected for EE, income qualified programs, renewable energy, and research and development. City has used funds for some electrification programs and is in conversation on how to use this in defensible way and what the competing priorities are Council Member George Lu Interested in both BESO and EaaS, lots of questions for both Interested in how we can reach MF apartments through sales of buildings and individual condos EaaS is more uncertain and has more moving parts; there are lots of questions to consider o What lenders exist out there? o How much risk is City taking on? o What happens if homeowners want to get expensive appliances? What happens if homeowners get into financial trouble? o Make process as simple as possible BluePoint Planning 12/22/25 9 1 0 4 3 2 BluePoint Planning 12/22/25 10 1 0 4 3 2 Game Board Result Images BluePoint Planning 12/22/25 11 1 0 4 3 2 BluePoint Planning 12/22/25 11 1 0 4 3 2 BluePoint Planning 12/22/25 12 1 0 4 3 2 BluePoint Planning 12/22/25 13 1 0 4 3 2 CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, February 02, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     8.Review the 2024 Greenhouse Gas Inventory and S/CAP Key Performance Indicators Annual Progress Report, and Approve the 2026-2027 S/CAP Work Plan and Receive Six S/CAP Studies Recommended by the Climate Action and Sustainability Committee; CEQA Status: Review GHG Inventory and Key Performance Indicators: Not a Project; Potential Environmental Impacts of the S/CAP Work Plan were Studied in the June 5, 2023 S/CAP Addendum to the 2017-2031 Comprehensive Plan EIR; this Project is also Exempt Pursuant to CEQA Guidelines Section 15183 Supplemental Report added   Item No. 8. Page 1 of 1 City Council Supplemental Report From: Brad Eggleston, Director Public Works/City Engineer Meeting Date: February 2, 2026 Item Number: 8 Report #:2601-5858 TITLE SUPPLEMENTAL REPORT: Review the 2024 Greenhouse Gas Inventory and S/CAP Key Performance Indicators Annual Progress Report, and Approve the 2026-2027 S/CAP Work Plan and Receive Six S/CAP Studies Recommended by the Climate Action and Sustainability Committee; CEQA Status: Review GHG Inventory and Key Performance Indicators: Not a Project; Potential Environmental Impacts of the S/CAP Work Plan were Studied in the June 5, 2023 S/CAP Addendum to the 2017-2031 Comprehensive Plan EIR; this Project is also Exempt Pursuant to CEQA Guidelines Section 15183 BACKGROUND The attached summary of the public workshop held December 13, 2025 by the Climate Action and Sustainability Committee (CASC), and which was mentioned in the Executive Summary, Analysis, and Fiscal Impact sections of the report, was inadvertently not attached to the initial staff report ATTACHMENTS Supplemental Attachment A: Summary of December 13, 2025 CASC Workshop APPROVED BY: Brad Eggleston, Director Public Works/City Engineer BluePoint Planning 12/22/25 1 S/CAP Priorities Workshop Summary On December 13, 2025, Palo Alto hosted a Climate Action Priorities public workshop aimed at identifying the types of mechanisms that Council and the public is interested in using to advance the Sustainability and Climate Action Plan ( S/CAP) 80x30 goals related to climate action for the residential sector. This workshop was also held as part of a special public meeting of the Climate Action and Sustainability Committee (Committee). The three council members of the Committee (Vicki Veenker, Patrick Burt, and George Lu) and Commissioner Rachel Croft from the Utilities Advisory Commission attended the meeting, with an additional 20 members of the public in attendance. The public workshop was also designed to promote greater understanding of tradeoffs in financing and regulations to achieve the City’s 80x30 goals. The workshop focused on an interactive tabletop game named “Decarb Quest.” This game asked participants to pick at random cards representing different resident types and characteristics, home types, and home triggers. From there, participants must decide the strategy or combination of strategies that would best promote electrification in each scenario. Participants could also design additional strategy cards for scenarios in which they felt the suite of potential strategies was not sufficient. The workshop followed the following agenda: Introductions Climate Action Priorities Presentation Breakout Group Discussion o Benefits and challenges of mandates and incentives Evaluating Decarbonization Programs Presentation Breakout Group Discussion o Decarb Quest game on potential tools and approaches for electrification Public Comment Closing Comments BluePoint Planning 12/22/25 2 Wall Graphic Recording Below is the wall graphic recording from the workshop that captured high-level takeaways from breakout group conversations. BluePoint Planning 12/22/25 2 BluePoint Planning 12/22/25 3 Mandates and Incentives Presentation and Discussion Ahead of the first breakout group discussion on mandates and incentives, Jonathan Abendschein, Assistant Director of Climate Action, delivered a presentation on the S/CAP Electrification Funding Study, discussing the quantification of total benefits to the Palo Alto community over time from switching from gas to electric appliances and some initial considerations for utilizing incentives and mandates to accomplish electrification. Jonathan then took questions and comments from the Council Members present (full list of comments is listed under the detailed notes). Participants were then asked to discuss the benefits and drawbacks of utilizing incentives vs. mandates to accomplish 80% reduction in GHG emissions by 2030. Summary of Participant Comments Below are the takeaways from the breakout groups discussion: There is a place for both mandates and incentives to reach 80x30 goals Storytelling and effective communication is essential to support mandates and incentives o Mandates need to be paired with communication training; if people believe that their contributions are important, more people are likely to follow suit o Voluntary incentives give people agency and encourage personal storytelling It is important to quantify health savings as part of the discussion about avoided costs from electrification City should utilize mandates and include incentives as a stop gap measure o City can set health and safety standards/ mandates that must be met, and then use incentives to get people to reach those standards Incentives should focus on less affluent residents with higher need o City must do incentives o Some groups stated that incentives should be income qualified Programs that support incentives and mandates should be designed to reduce friction as much as possible for residents Workforce needs to be involved in leading electrification efforts BluePoint Planning 12/22/25 4 Detailed Comments Below are additional notes from Council Members about the Decarbonization Strategies Presentation. Council Member Pat Burt Emphasize health and safety benefits of electric appliances o Appealing to community for support for programs based on climate impacts will capture chunk of community; more people spurred to action by health benefits o Should quantify economics of health benefits in study and feature these benefits to community o Safety should be a priority element EV trips likely account for greater share of trips than reflected in the EV ownership rate (of 16%) o Around 50% of purchases are EVs o Most people who purchase EVs use them more than their older car o Trends in equipment cost moving forward may decline o Wondered to what degree we are basing funding projections on current costs of electric appliances Council Member George Lu Can the funding study take into account a decrease in EV charging installation costs/ HPWH costs over time? o Is there a scenario where we can count on some national technology curve How are offsets assessed to users? o Offsets could be used more creatively as stick or carrot Vice Mayor Vicki Veenker Consider savings from gas transition study from Air District Implementation of Air District rules could save 89 deaths annually and $890 mil per year BluePoint Planning 12/22/25 4 BluePoint Planning 12/22/25 5 Electrification Strategies, Discussion, Decarb Quest Game Before the second breakout group, which focused on electrification strategies, Jonathan delivered a presentation on considerations for electrification strategies, including financing options for incentives. This included considerations for how a Building Emissions Savings Ordinance (BESO) could operate, and an overview of financing cash flows for Electrification as a Service (EaaS) for Palo Alto residents. Jonathan then took questions from the Council Members present (full list of comments is listed under the detailed notes). Participants then rearranged into different breakout groups and completed an interactive tabletop game, “Decarb Quest.” This game asks participants to pick at random cards representing different resident types and characteristics, home types, and triggers for electrification upgrades. From there, participants must decide the strategy or combination of strategies that would best promote electrification in each scenario. Participants fill out the game board, picking at random from the deck two resident characteristics, a home type card, and a trigger for what may be happening to that home type (e.g. selling house, wanted to remodel, etc.). Participants then score how well that suite of strategies will encourage the resident with that home type to electrify, using game pieces to score on a scale of 1-4. Strategies that score a 1 would mean that residents would not electrify, and 4 means they would certainly electrify. Participants could also design additional strategy cards for scenarios in which they felt the suite of potential strategies was not sufficient. Below are images of the blank board and cards that participants were given. The images of the filled out boards from the game are included below at the end of this summary. BluePoint Planning 12/22/25 6 Decarb Quest Game Board Decarb Quest resident characteristic, housing characteristic and housing trigger cards BluePoint Planning 12/22/25 7 Summary of Participant Comments Below are the takeaways from the breakout groups discussion: Overall, the BESO and EaaS were popular strategies o BESO and EaaS work well for more affluent, singly family (SF) households, especially those doing remodels or large projects o May need to increase cost for BESO-funded upgrades for buyers o Traditional financing and EaaS may work for those with affordability issue o City could host investment fund to help support EaaS program Communication and storytelling must be part of BESO and EaaS programs o Emphasize that natural gas prices will rise and the City needs to protect residents’ health; by electrifying, the City will end up with lower, cheaper utility bills and improve residents’ health o Emphasize that electrification increases home value o Publicize existing programs more! The renter segment is difficult to reach o Mandates would work better for renters; renters need to be empowered to reach landlords o There are some other residents and scenarios that are difficult to electrify (e.g. a young, financially constrained family who is selling their house; landlord with renters who are high energy users and have a broken appliance) Multifamily (MF) homes typically have access to a traditional financing qualification In some scenarios it may make more sense for buyers to complete/ pay for energy assessment as part of BESO; buyer would then be required to upgrade to code when doing a construction project Require those selling their home to future proof it to become all-electric Implement the Watt Diet (strategic selection of electric products and load sharing among devices) to reduce the need for panel upgrades o City could price amp services differently, with higher watt panels costing more Technical assistance is a throughline for many electrification strategies Homeowners associations (HOAs) are a different scenario than rental apartments because there are so many hoops to jump through o Incentives would not be the driver of upgrades o EaaS may be a partial solution but there may still be a gap for HOAs City could pool electrification projects for more income-constrained residents Should be easier for residents to use electric vehicles (EVs), especially for MF properties o They can be a battery for homes and support resilience o Time of use (TOU) rates could be mandated; they would support EV usage and make EVs more affordable BluePoint Planning 12/22/25 8 Additional Strategies Below is the full list additional strategies that participants brainstormed during the Decarb Quest game: BESO without public reporting For BESO, the seller can do the energy assessment but the buyer is required to upgrade (as opposed to the seller) Progressive loans (particularly for financially constrained households) Building owner makes bulk electric appliance purchase at reduced upfront cost (for MF renters) Building performance standard– each home has an environmental rating o May not be public for homeowners o Building performance standards (BPS) may work well for larger, MF properties, and would give these properties a timeline to electrify Pool electric project scopes for multiple homes City fund for electrification as service to reduce costs to residents o Some funds would be invested and get returns, some given to EaaS o This would help subsidize financially constrained residents EV charging in City lots adjacent to MF properties Streetside charging Portable induction cooktops Use City investment funds so City can be full financer of EaaS (City already covers loans under GoGreen) Education and communication around electrification benefits must underpin all strategies o Lawn signs can promote emergency heat pump water heater (HPWH) replacements and GoGreen financing Below are additional notes from Council Members about the Decarbonization Strategies Presentation. Vice Mayor Vicki Veenker Very interested in what has traction with residents Strategies aren’t necessarily alternatives, but can be combined– what is interplay between the strategies? Interested in understanding BESO ordinance Sees potential for Electrification as a Service Council Member Pat Burt Under EaaS we have lender involvement; to what extent would that be friction point? How simple could that become? BluePoint Planning 12/22/25 9 o Palo Alto has simplified permitting for solar o Jonathan: there is discussion regionally on lender friction Where does funding come from for existing electrification and energy efficiency (EE) efforts and what legal latitude can apply? o Jonathan: electric public benefits funding is collected for EE, income qualified programs, renewable energy, and research and development. City has used funds for some electrification programs and is in conversation on how to use this in defensible way and what the competing priorities are Council Member George Lu Interested in both BESO and EaaS, lots of questions for both Interested in how we can reach MF apartments through sales of buildings and individual condos EaaS is more uncertain and has more moving parts; there are lots of questions to consider o What lenders exist out there? o How much risk is City taking on? o What happens if homeowners want to get expensive appliances? What happens if homeowners get into financial trouble? o Make process as simple as possible BluePoint Planning 12/22/25 9 BluePoint Planning 12/22/25 10 Game Board Result Images BluePoint Planning 12/22/25 11 BluePoint Planning 12/22/25 11 BluePoint Planning 12/22/25 12 BluePoint Planning 12/22/25 13