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Home My WebLink About2026-05-15 Climate Actions and Sustainability Committee Agenda PacketCLIMATE ACTION AND SUSTAINABILITY COMMITTEE Special Meeting Friday, May 15, 2026 Community Meeting Room & Hybrid 2:00 PM Climate Action and Sustainability Committee meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. The meeting will be broadcast live on YouTube https://www.youtube.com/c/cityofpaloalto. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/85380918387) Meeting ID: 853 8091 8387 Phone: 1(669)900-6833 PUBLIC COMMENTS General Public Comment for items not on the agenda will be accepted in person for up to three minutes or an amount of time determind by the Chair. General public comment will be heard for 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. Public comments for agendized items will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. Requests to speak will be taken until 5 minutes after the staff’s presentation or as determind by the Chair. Written public comments can be submitted in advance to city.council@PaloAlto.gov and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. Multiple individuals who wish to speak on the same item may designate a spokesperson. Spokespersons must be representing five or more verified individuals who are present either in person or via zoom. Spokespeople will be allowed up to 10 minutes, at the discretion of the presiding officer. Speaking time may be reduced if the presiding officer reduces the speaking time for individual speakers. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@PaloAlto.gov at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other types of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. 1 May 15, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. CALL TO ORDER PUBLIC COMMENT Members of the public may speak in-person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. STANDING VERBAL REPORTS A. Staff Comments B. Committee Member Comments and Announcements ACTION ITEMS 1. Residential Electrification Status Update and Proposed Principles for Electrification Programs to Assist with Air District Regulation Compliance; CEQA Status - Not a Project Late Packet Report Added FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s) ADJOURNMENT 2 May 15, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@PaloAlto.gov. 2.For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3.Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. ◦You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. ◦You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. ◦When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. ◦When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4.Spoken public comments for agendized items using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 853 8091 8387 Phone: 1(669)900-6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329-2550 (voice) or by emailing ada@PaloAlto.gov. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 3 May 15, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $500 made within the last 12 months, you must disclose the campaign contribution before making your comments. 4 May 15, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. Climate Action and Sustainability Committee Staff Report Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: May 15, 2026 Report #:2604-6322 TITLE Residential Electrification Status Update and Proposed Principles for Electrification Programs to Assist with Air District Regulation Compliance; CEQA Status - Not a Project This item will be a late packet publication released on 5/7/26. Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 1 Packet Pg. 5 of 9 Climate Action and Sustainability Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: May 15, 2026 Report #:2604-6304 TITLE Residential Electrification Status Update and Proposed Principles for Electrification Programs to Assist with Air District Regulation Compliance; CEQA Status - Not a Project RECOMMENDATION This is a discussion item and no recommendation is requested. EXECUTIVE SUMMARY Staff is providing a presentation on the status of residential electrification efforts and requesting feedback from the Climate Action and Sustainability Committee (CASC) on proposed principles for electrification programs to assist with Air District regulation compliance. BACKGROUND The City has adopted a full-featured program to help people electrify their homes. Features include rebates for in-unit and central systems for single-family and multi-family homeowners, landlords, and condo associations who hire their own contractors as well as technical assistance and direct installation services available to single-family homeowners. Staff is working on expanding and improving rebates and technical assistance for multi-family central systems. The City Council has also approved a grant program to electrify affordable multi-family buildings that is generating strong interest. ANALYSIS On March 2, 20261 the City Council adopted several work items related to single-family and multi-family residential programs. These work items involve continuing and improving existing 1 City Council, March 2, 2026, Agenda Item 9, Staff Report 2602-5985, 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, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86664&dbid=0&repo=PaloAlto Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 1 Packet Pg. 6 of 9 programs through 2027 when Air District regulations take effect, while gradually shifting away from incentives to financing with all programs. In the single-family sector there is a focus on improving programs, shifting to financing, and using data to improve outreach, participation, and service delivery. In the multi-family sector the focus is on equitable electrification and multi-family EV charging, with a shift from incentives to financing. Table 1: Selected 2026-2027 S/CAP Work Plan Work Items Related to Single-Family Programs Related to Multi-Family Programs CA1. Continue Advanced Home Electrification Pilot CA2. Electrification as a Service or Financing Pilot CA3. Enhanced data tracking for home electrification CA4. Multifamily EV Charging Program CA5. Charging-as-a-Service (CaaS) or Other Financing CA6. Continue Affordable Multifamily Grant Program CA7. Multi-Family Technical Assistance 3 requiring that equipment manufactured after specific deadlines must not emit oxides of nitrogen (sometimes referred to as Zero NOx regulations) take effect in 2027, 2029, and 2031 and will affect residential buildings as listed below. The Air District is considering exemptions for income-qualified building owners and for complex projects. January 1, 2027: small water heaters (residential in-unit, some commercial) January 1, 2029: all space heating January 1, 2031: large central multi-family and commercial water heaters / boilers Align incentives regionally Continue incentives for all residents for the first year of Air District regulations (2027), even if subject to the regulations Prioritize incentives for those in need in future years, subject to budget availability and legal review o This could include both low-income and middle-income residents as well as those with complex projects exempt from Air District regulations o Longer-term, explore financing solutions with low / manageable monthly cost paid off at home sale for “high-equity” low- and middle-income homeowners 3 CASC, September 5, 2025, Staff Report 2507-5016, Consideration of Alternatives for City’s Role in Facilitating Compliance with Air District Zero NOx Requirements for Water Heaters, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=46460&dbid=0&repo=PaloAlto Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 2 Packet Pg. 7 of 9 o The same approach could be used for homeowners with complex projects o Consider a copay or partial incentive rather than full incentive for low-income participants Shift from incentives to financing or electrification as a service (EaaS) for other residents after 2027, to the extent feasible When moving to financing, consider repayment incentives to accompany EaaS and/or 0% financing: o Provide repayment assistance for all interested residents through 2028 to match repayments to budget savings, if budget permits o In the longer term, constrain assistance to what is affordable at community scale o Allow, but don't require renter participation in EaaS or on-bill financing when landlords electrify When considering new regulations affecting the residential sector, consider how they will interact with Air District regulations. Look for complementary effects and coordinate exceptions and applicability FISCAL/RESOURCE IMPACT $5.3 million in additional funding was approved in the FY 2026 budget for residential electrification programs in progress or currently under development, funded from Gas Cap and Trade and Low Carbon Fuel Standard revenues. The proposed FY 2027 budget for single-family and multi-family programs is aligned with these proposed principles and is being presented to the Finance Committee on May 5, 2026. STAKEHOLDER ENGAGEMENT Residential electrification has been an area of focus for the CASC, its predecessor Ad Hoc Committees, and the Working Group since 2020 and a variety of public discussions have been held on the topic. Prior to that, residential electrification was a focus of the City Council when considering Reach Codes, and public outreach was performed as part of each code cycle. On September 5, 20255 staff met with CASC on this topic and met with the Working Group on September 3, 2025. A public workshop was held on Saturday, December 13, 2025. Staff is meeting with the Climate Action Working Group prior to the May 15, 2025 CASC meeting and will provide an update on feedback received. In addition, staff has been coordinating with neighboring community choice energy providers to ensure regional alignment and is tracking regional progress on consideration of this issue. 5 CASC, September 5, 2025, Staff Report 2507-5016, Consideration of Alternatives for City’s Role in Facilitating Compliance with Air District Zero NOx Requirements for Water Heaters, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=46460&dbid=0&repo=PaloAlto Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 3 Packet Pg. 8 of 9 ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 4 Packet Pg. 9 of 9