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HomeMy WebLinkAbout2026-06-12 Climate Action & Sustainability Committee Agenda PacketCLIMATE ACTION AND SUSTAINABILITY COMMITTEE & UTILITIES ADVISORY COMMISSION Joint Special Meeting Friday, June 12, 2026 Council Chambers & 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 June 12, 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. Feedback on Strategies for Community-Wide Electrification to Model for Future City Council Consideration; CEQA Status - Not a Project Late Packet Report Added 2. Recommendation to Approve Design Guidelines for a Public Agency EV Charging Hub Grant Program. CEQA Status; Under CEQA Guidelines Section 15183, Projects Consistent with an Existing General or Comprehensive Plan do not Require Additional CEQA Review Late Packet Report Added FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s) ADJOURNMENT 2 June 12, 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 June 12, 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 June 12, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. 1 0 0 9 2 Climate Action and Sustainability Committee Staff Report Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: June 12, 2026 Report #:2605-6419 TITLE Feedback on Strategies for Community-Wide Electrification to Model for Future City Council Consideration; CEQA Status - Not a Project This item is a late packet publication released on 6/4/26. Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 1 Packet Pg. 5 of 17  Climate Action and Sustainability Committee Staff Report Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: June 12, 2026 Report #:2605-6420 TITLE Recommendation to Approve Design Guidelines for a Public Agency EV Charging Hub Grant Program. CEQA Status: Under CEQA Guidelines Section 15183, Projects Consistent with an Existing General or Comprehensive Plan do not Require Additional CEQA Review This item will be a late packet publication released on 6/4/26. Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 1 Packet Pg. 6 of 17  Climate Action and Sustainability Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Departments: Public Works, Utilities Meeting Date: June 12, 2026 Report #:2603-6037 TITLE Feedback on Strategies for Community-Wide Electrification to Model for Future City Council Consideration; CEQA Status - Not a Project RECOMMENDATION This is a discussion item and no action is required. EXECUTIVE SUMMARY Staff performed studies in 2021 and 2025, as described in the Background section, to identify electrification opportunities and understand the financial aspects of community-wide electrification. The City also did pilots over the last few years to acquire real world experience to help staff and policy makers design electrification strategies. Staff now has the appropriate tools and knowledge to develop actionable policy options on community-wide electrification for City Council consideration. Staff is seeking feedback on a list of policy options to analyze while providing an overview of the modeling approach and methodology for context. Staff is seeking feedback from the Climate Action and Sustainability Committee (CASC) and the Utilities Advisory Commission (UAC) on the six policy options listed in the Analysis section before doing the modeling to ensure that the final results enable the CASC and UAC to provide policy recommendations to the City Council on which strategy or strategies to explore or pursue for community electrification and to understand how they would affect rates and affordability. BACKGROUND In April 2016, the City Council formally adopted the goal of an 80% reduction in GHG emissions relative to a 1990 baseline by 2030 (“80x30”) as a key climate target. In October 2022 it also incorporated an additional objective of achieving carbon neutrality by 2030 for the Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 1 Packet Pg. 7 of 17  community.1 A key challenge identified in the S/CAP is securing the funding and financing necessary to scale up electrification programs. In early 2020, the City launched an S/CAP update to determine the goals and key actions needed to meet its sustainability goals, including the 80x30 goal. Staff presented the S/CAP Impact Analysis to Council on April 19, 2021,2 and the analysis was summarized by the City’s consultant, AECOM, in a June 7, 2021 memo.3 The analysis was able to identify 71% reductions from 1990 levels, as well as some key efforts for the City to focus on in the short term, acknowledging that more analysis was needed. The City Council initiated an S/CAP Funding Study to complete that analysis in the 2023–2025 Work Plan.4 The City retained a consultant team - Willdan, E3 (a Willdan company), and Rincon5 to complete an S/CAP Funding Model and study of the 80x30 goal as well as several complementary studies (an EV Charger Needs Assessment, studies of electrification opportunities in multifamily and non-residential buildings, and a Funding Source Survey). These studies identified electrification opportunities to achieve a full 80% reduction in emissions, provided input data and a model to evaluate different electrification rollout scenarios and their financial implications, and surfaced the need for program and financing models other than up- front incentives to reduce the cost to the City of community-wide electrification. The model showed, under a 2024 policy environment, that in a baseline future without electrification, the community will spend nearly $1.4 billion (present value) on replacing gas building equipment and internal combustion (ICE) engine vehicles with new gas equipment and ICE vehicles, and in doing so would pay more in utility bills and transportation expenses than if they had electrified. Installing electrified equipment instead to achieve 80% reductions on a 2030 timeline would require $2.1 billion in up-front investment (present value), nearly $700 million more, but this would be offset by $975 million in net savings (present value) for households and businesses over the next 20 years. 1 City Council, October 3, 2022; Agenda Item #9; SR #14720, Acceptance of Sustainability and Climate Action Plan (S/CAP) Goals and Key Actions; Review of Proposed Reach Code Changes; Adoption of Resolutions Adopting Advanced Heat Pump Water Heater Program Guidelines, Creating and Funding Electrification Reserves, Amending the City’s Policy on the Use of Cap and Trade Allowance Revenues, and Adopting a Carbon Neutrality Goal; Approval of Budget Amendments in the Electric Fund, Gas Fund, and General Fund; and Direction to Staff to Amend the 2022 Utilities Legislative Guidelines, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council- agendas-minutes/2022/20221003/20221003accsm-amended-presentations.pdf#page=131 2 City Council, April 19, 2021, Report 12009, Council Review of the S/CAP Update Report, Provide Feedback on Poli cy Tools, and Direction to Staff to Implement an S/CAP Engagement Strategy, https://www.cityofpaloalto.org/files/ assets/public/v/3/agendas-minutes-reports/reports/city-manager-reports-cmrs/year-archive/2021/id-12009.pdf 3 Palo Alto Action Impact Memo, AECOM, June 7, 2021, https://www.paloalto.gov/files/assets/public/v/2/sustaina bility/reports/aecom-palo-alto-action-impact-memo_final_rev-210607.pdf 4 https://www.paloalto.gov/files/assets/public/v/1/sustainability/reports/2023-2025-scap-work-plan_final.pdf 5 City Council, January 16, 2024, Staff Report 2308-1939, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82633&dbid=0&repo=PaloAlto Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 2 Packet Pg. 8 of 17  The City has also built knowledge and data from pilot programs that can inform this analysis, such as the Advanced Heat Pump Water Heater Pilot Program, multi-family electric vehicle technical assistance and incentive program, and commercial packaged HVAC pilot. This planning effort is taking place in the context of Bay Area Air District (Air District) regulations scheduled to take effect in 2027, 2029, and 2031 requiring the space and water heating equipment sold in the Bay Area emit no oxides of nitrogen, which, with current technologies, means electrification. The Air District is currently considering a set of exceptions to these regulations. Staff intends to factor these regulations into its modeling. ANALYSIS Staff intends to use the models, study data, and pilot program data to analyze the following six policy alternatives, and is looking for CASC and UAC feedback on whether these will give the City Council the range of options they need to direct staff on policy option(s) to explore further or pursue for community-wide electrification, and whether the model outputs provide the information the City Council will need to decide between the options. Staff believes that achieving 80% reductions on the 2030 timeline through equipment replacement in Palo Alto (as opposed to offsetting emissions without replacing equipment) would require community action well beyond what seems likely based on program results to-date of approximately 50% reduction in greenhouse emissions. The strategies below would provide a range of actionable alternatives on varying timelines for City Council consideration: 1.Baseline: Air District regulations go into effect as adopted, but the City discontinues programs and does not establish any new local regulations beyond those already in effect. 2.Income Qualified Focus: Air District regulations take effect and the City establishes programs for income-qualified residents 3.Regulations Only: Air District regulations take effect and the City establishes local regulations (residential building emissions savings ordinance and commercial building performance standards) instead of programs 4.Regulations plus Moderate Programs: Air District regulations take effect, the City establishes local regulations (residential building emissions savings ordinance and commercial building performance standards) and a moderate level of program assistance focused as cost-efficiently as possible to encourage adoption by community members not required to electrify by local or regional regulations. 5. Maximize End of Life Electrification: This scenario involves a combination of local regulations (residential building emissions savings ordinance and commercial building performance standards), and comprehensive programs to complement Air District regulations, with the intention of ensuring as many community members as possible electrify when their gas equipment reaches end of life. Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 3 Packet Pg. 9 of 17  6. Maximize Emissions Reduction: This alternative is the same as alternative five, but with additional incentives for community members who retire equipment early, with the goal of achieving emissions reductions earlier. These strategies provide a range of options for City action on community-wide electrification, from regulatory-heavy alternatives with lower City expenditures to alternatives requiring more revenue, but which are more likely to achieve 80% reductions on a shorter timeline. Staff are primarily seeking CASC and UAC feedback on these six policy alternatives. Study methodology To provide context for that discussion, staff is providing the following information about the study methodology. As part of its analysis staff will update underlying assumptions, including, but not limited to: External funding source availability (Federal, State, etc.) Grid modernization costs EV adoption forecasts given the changing policy landscape (e.g. California legislation such as Advanced Clean Cars II with uncertain status) Gas and electric rate projections Appliance annual energy usage Fuel price forecasts EV up-front and operational costs Staff will model the policy options using these updated assumptions and produce the following outputs: The City revenue need for each modeled strategy The rate of emissions reduction and the year in which 80% reductions are achieved The projected contributions of different regulations and programs to emissions reductions Staff will then model the impact on utility rates and household expenses of using different types of revenue sources to fill the City revenue need for each scenario. Staff will consider which among the following revenue sources best fits each policy option. Not every revenue source will be used in every scenario, and all options will require legal feasibility analysis once sufficient detail becomes available: Utility restricted revenues – Electric Public Benefits Charge, Electric Cap and Invest, Gas Cap and Invest, and Low Carbon Fuel Standard11 11 Staff will update the forecasts for these revenue sources, which are declining (except Public Benefits). All sources have restrictions on how they can be used. In addition, these sources can be used to fund sustainability efforts (e. g. renewable energy) that the City is currently funding from ratepayer revenue, which would reduce rates, as an alt Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 4 Packet Pg. 10 of 17  ernative to funding electrification efforts, or for climate credits to reduce bills. The tradeoffs between the different Parcel tax13 Utility bill funding Utility bill funding (e.g. utility user’s taxes, climate action surcharge, on-bill 0% financing, rate increases) alternatives can be individually modeled. Each potential funding source may not ultimately be deemed viable. For example, simply increasing electric rates to fund transportation and building electrification has potential issues with Prop 26 and creation of subsidies between customers classes. Any increase in the electric utility bills to raise revenue would need to be balanced against potentially disincentivizing electrification and impacts on affordability. Analysis will incorporate the regulatory options and carbon pricing alternatives discussed at the April 17, 2026 CASC meeting14 and will take into account how the structure of electric rates can affect electrification cost effectiveness. The impact on gas rates from the Gas Transition Study will be incorporated as that study proceeds, noting that preliminary results showed that gas main abandonment may not occur until late in the process of community-wide electrification, as discussed with the UAC and CASC at their October 1, 202515 and October 17, 2025 meetings,16 respectively. This means gas rates could increase as a result of widespread electrification unless an alternative revenue source for gas system maintenance were identified. FISCAL/RESOURCE IMPACT Staff intends to do these studies using in-house staff as much as possible, with about 0.5 FTE of staff time expected through December 2026. Staff has set aside up to $50,000 for consultant assistance if needed, but does not anticipate needing all of this funding, and is aiming to complete the study without using any outside assistance. The non-salary expenses, if any, are being funded by General Fund sustainability budgets while staff time is funded by those same sustainability budgets and Utilities funds and Utilities uses of these special revenues were discussed by the City Council on May 12, 2025 (Agenda Item 5, Staff Report 25 03-4421, Discussion of Strategies for the Use of Low Carbon Fuel Standard, Electric and Gas Cap and 14 Climate Action and Sustainability Committee, April 17, 2026, Report 2602-5956, Review and Discussion of Scope of Policy Research and Analysis Planned for 2026-2027 S/CAP Work Plan Items CA13, CA14, and CA16 focused on th e Regulatory and Financial Strategies and Scenarios for Community-wide Electrification, https://cityofpaloalto.prim egov.com/meetings/ItemWithTemplateType?id=11567&meetingTemplateType=2&compiledMeetingDocumentId= 19142 15 Utilities Advisory Commission, October 1, 2025, Report 2502-4137, Discussion of Preliminary Analysis of the Infra structure Impacts Associated with Gas Decommissioning, https://cityofpaloalto.primegov.com/meetings/ItemWith TemplateType?id=9137&meetingTemplateType=2&compiledMeetingDocumentId=17000 16 Climate Action and Sustainability Committee, October 17, 2025, Report 2507-5022, Discussion of Preliminary An alysis of the Infrastructure Impacts Associated with Gas Decommissioning, https://cityofpaloalto.primegov.com/me etings/ItemWithTemplateType?id=9481&meetingTemplateType=2&compiledMeetingDocumentId=17155 Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 6 Packet Pg. 11 of 17  restricted revenue funds (e.g. Electric Public Benefits Charge, Electric Cap and Invest, and Gas Cap and Invest) STAKEHOLDER ENGAGEMENT Staff has engaged the City Council, Council Committees, and the public on financial strategies for electrification in various venues over several years. Staff presented the S/CAP Impact Analysis to Council on April 19, 2021,20 which was also provided to the public in a webinar format.21 The S/CAP Ad Hoc Committee, established in 2021, included community stakeholders and discussed financial strategies for individual programs and community-wide electrification. The S/CAP Funding Study, in progress through 2024 and 2025, was discussed with the City Council’s Climate Protection Ad Hoc Committee in October 2024 and December 2024. The City Council’s CASC held a discussion of the study in April 2025,22 followed by a public workshop on December 13, 202523 where the final results were discussed and community ideas and feedback on next steps were solicited. More detail on the history of community engagement on this topic can be found in the staff report for the December 13, 2025 CASC meeting. Staff is discussing these policy options with the Climate Action Working Group on June 11, 2026 and will provide a verbal update on the group’s feedback. Staff anticipates continuing to solicit community feedback through the CASC, the Working Group, and the UAC while this analysis continues. Following the analysis results, more extensive outreach may be needed depending on the strategy or strategies the City Council directs staff to explore further or pursue. ENVIRONMENTAL REVIEW The discussion of this item by CASC and UAC is not a project as defined by CEQA because the discussion of electrification strategies for modeling does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Alan Kurotori, Utilities Director 20 City Council, April 19, 2021, Report 12009, Council Review of the S/CAP Update Report, Provide Feedback on Poli cy Tools, and Direction to Staff to Implement an S/CAP Engagement Strategy, https://www.cityofpaloalto.org/files/ assets/public/v/3/agendas-minutes-reports/reports/city-manager-reports-cmrs/year-archive/2021/id-12009.pdf 21 https://www.youtube.com/watch?v=kZB4P7tLvrg&list=PLJ0x6PDuVXlPJ2o1qIlEXINb8rQ8HNMid&index=17 22 Climate Action and Sustainability Committee, April 4, 2025, Report 2503-4398, Discussion of Preliminary Sustain- ability and Climate Action Plan (S/CAP) Funding Study Results, https://cityofpaloalto.primegov.com/meetings/Item WithTemplateType?id=7672&meetingTemplateType=2&compiledMeetingDocumentId=13682 23 Climate Action and Sustainability Committee, December 13, 2025, Report 2507-5025, Workshop on Economics of Large-Scale Community Electrification, Challenges, and Innovative Program Strategies for the Single-Family Sector, https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=10206&meetingTemplateType=2&com piledMeetingDocumentId=18032 Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 7 Packet Pg. 12 of 17  Climate Action and Sustainability Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: June 12, 2026 Report #:2605-6370 TITLE Recommendation to Approve Design Guidelines for a Public Agency EV Charging Hub Grant Program; CEQA Status - Under CEQA Guidelines Section 15183, Projects Consistent with an Existing General or Comprehensive Plan do not Require Additional CEQA Review RECOMMENDATION Staff recommends that the Climate Action and Sustainability Committee (CASC) recommend that the City Council approve the proposed Program Guidelines to authorize a Public Agency Electric Vehicle Charging Hub Grant Program (Attachment A). EXECUTIVE SUMMARY Transportation emission reductions is a primary goal for emissions reductions in the S/CAP Goals and Key Actions, with increased access to electric vehicle (EV) charging for multi-family residents being a key approach to achieving that goal. One strategy for enabling access is siting EV charging and mobility hubs in locations near multi-family buildings. Public agencies have parking facilities spread throughout residential areas and are high potential locations for such hubs. Staff is recommending a grant program to public agencies to use in conjunction with external grant funding or their own funding streams to encourage more EV charging on these sites. Staff is recommending adoption of a set of guidelines for the program that ensures sites are close to multi-family housing, particularly dedicated affordable housing, that ensures charging rates are at cost and that chargers are accessible overnight, and that provides some cost recovery to the City in exchange for the grant. The City has already identified various City, PAUSD, and other public agency sites with high potential for these charging hubs. If the CASC recommends approval, staff would seek City Council approval in August 2026 with the goal of making the program available on a short timeline compatible with timelines for a large MTC grant that could facilitate some of these public agency charging hubs. Item 2. Item 2 Late Packet Report Item 2.: Staff Report Pg. 1 Packet Pg. 13 of 17  BACKGROUND In April 2016, the City Council formally adopted the goal of an 80% reduction in GHG emissions relative to a 1990 baseline by 2030 (“80 x 30”) as a key climate target. A significant area for emissions reduction is EV adoption to reduce transportation emissions, and access to charging is a common barrier for multi-family households, which make up about 40% of households in Palo Alto. The City Council adopted an E-Mobility Strategic Roadmap on August 18, 20251 that included a variety of strategies for facilitating access to charging, such as Strategy 2, Action 1, which addressed active facilitation of EV charging for multi-family complexes, and Strategy 3, Action 2 and Action 3, which talked about facilitating access to e-mobility hubs that included EV charging and other amenities and partnerships to add EV charging for overnight charging near multi-family residences. On March 2, 2026 the City Council adopted the 2026-2027 Sustainability and Climate Action (S/CAP) Work Plan2 that included work item CA4 (Launch Enhanced Multi-Family EV Charging Infrastructure Program) consisting of multiple components, including publicly accessible charging at neighborhood e-mobility hubs. This program would partially implement this work item. ANALYSIS Publicly-owned amenities like parks, schools, public parking garages, and transit centers tend to be located in residential areas, many near concentrations of multi-family housing. The parking lots at these locations are primarily used during the day, leaving opportunities for overnight EV charging for nearby multi-family buildings in addition to EV charging during the day for people who use these locations. The City’s garages are an example of this type of model. Most City garages with EV chargers see some amount of overnight charging every month. The City is looking at EV charging and mobility hubs in a variety of locations, including nonprofit and private properties near multi-family housing. But starting with public agency sites provides advantages because public agencies provide long-term, dependable, publicly accessible locations for EV charging. Operating without a profit motive, public agencies can be depended on to provide low-cost charging to residents and visitors. Public agencies often have competing priorities for limited funding, sometimes even having difficulties finding local match funding for grants to enlarge charging access. This program will help public agencies deploy public EV charging, either using their own funds or leveraging the City grant program as matching funds to take advantage of third-party grants. The City has, for example, obtained approval to pursue a $2.855M grant from the Metropolitan Transportation Commission (MTC) for use at Palo Alto Unified School District (PAUSD) and City sites. The 1 City Council, August 18, 2025, Agenda Item 6, Staff Report 2507-4943, Staff and the Climate Action and Sustainability Committee Recommendation to Accept the E-Mobility Strategic Roadmap, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83554&dbid=0&repo=PaloAlto 2 City Council, March 2, 2026, Agenda Item 9, Staff Report 2602-5985 (Attachment G), 2026-2027 Sustainability and Climate Action Work Plan, https://www.paloalto.gov/files/assets/public/v/2/sustainability/policies-and- plans/final-2026-2027-scap-work-plan.pdf Item 2. Item 2 Late Packet Report Item 2.: Staff Report Pg. 2 Packet Pg. 14 of 17  proposed City public agency EV charging hub grant program could provide local match funding that these agencies could use to deploy even more chargers. The same model could be used for additional grants pursued by the City and PAUSD or by other public agencies with suitable parking lots in Palo Alto. Staff recommends the program guidelines in Attachment A. These program guidelines: Focus the program on public agency sites near multi-family buildings State a preference for EV charging near dedicated affordable housing Ensure a distance of at least ¼ mile between public agency EV charging hubs, with the goal of minimizing walking distance for residents (ideally 1/8 of a mile) Ensure overnight charging is provided at cost and charging is accessible to the public at all times Provides for some cost recovery for the City in exchange for City grant assistance funding Allow and encourage City grant funding to be used to leverage other grant funding sources. If the CASC recommends this program for approval, staff would aim to schedule the City Council approval for early August and would launch the program quickly after City Council approval, subject to funding approval via the FY 2027 budget. FISCAL/RESOURCE IMPACT The funding for this program would be $550,000 from a combination of Low Carbon Fuel Standard and Electric Cap and Invest revenues, using budget authority from the FY 2027 budget, if approved by the City Council. Staff is tentatively considering up to a $5,500 grant per charger installed, which is sufficient to cover a portion of the cost, with the expectation that the remainder would be funded through external grants or other agency funding sources. Staff also intends to include an adder to repay some of the cost of the grant over time. The amount is to be determined, but would be under five cents per kWh. At this level of funding this budget would be enough to fund at least 100 chargers, with more potentially funded if parties are able to leverage external grant funding and efficient designs to maximize the number of charger heads per site, minimizing site prep costs as a share of total costs. Staff is expecting known PAUSD and City sites would require about $325,000 to $375,000 in funding, depending on the number of chargers installed. This funding would be applied to construction costs, not design. This means that if the projects were not built (e.g. because bids were higher than expected, exceeding available funds, or something were to happen to outside grant funding), the City would not need to pay out the grant. Item 2. Item 2 Late Packet Report Item 2.: Staff Report Pg. 3 Packet Pg. 15 of 17  STAKEHOLDER ENGAGEMENT The concept of EV charging and mobility hubs was discussed by the CASC in multiple public meetings and by the Climate Action and Sustainability Working Group in development of the E- Mobility Strategic Plan. Staff has had internal discussions about deployment at City sites and has discussed PAUSD interest in this program and their ability to leverage the program funding as local match for a grant opportunity from the MTC. City and PAUSD sites already identified could provide 80-110 EV chargers at 5-10 sites, with 60-70 near multi-family housing, and 45-55 of those near dedicated affordable multi-family housing. Staff will contact other public agencies with parking lots in Palo Alto, including the State’s Superior Court system, the Federal Veterans Affairs Hospital, and the Peninsula Corridor Joint Powers Board, whose Palo Alto and California Avenue Station parking lots are near multi-family buildings. ENVIRONMENTAL REVIEW Potential environmental impacts of a Public Agency EV Charging Hub Grant Program were analyzed as part of the Sustainability and Climate Action Plan (S/CAP) Addendum to the Comprehensive Plan Environmental Impact Report. On June 5, 2023 (Staff Report #2303-1158), Council certified the Addendum, which found that S/CAP programs would not result in any significant or substantially more severe effects beyond what was previously analyzed in the Comprehensive Plan EIR. Under CEQA Guidelines section 15183, projects consistent with an existing general or comprehensive plan do not require additional CEQA review. ATTACHMENTS Attachment A: Guidelines for Public Agency EV Charging Hub Grant Program APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Item 2. Item 2 Late Packet Report Item 2.: Staff Report Pg. 4 Packet Pg. 16 of 17  1 1 6 4 3 Guidelines for Public Agency EV Charging Hub Grant Program These guidelines are meant to guide development of an electric vehicle (EV) charging program designed to expand community access to publicly-owned EV charging located near concentrations of multi-family buildings, with a focus on locations near dedicated affordable housing. Program goals and scope The program should: 1. Enable convenient, affordable, and accessible overnight EV charging for multi-family residents at publicly-owned locations 2. Enable public agencies to leverage additional grant funding to expand the number of chargers installed and number of sites with EV chargers. Program design The Public Agency EV Charging Hub Grant Program will prioritize available funding for sites that meet the following conditions: Charging hubs must be at locations owned by a public agency Charging hubs must be within ¼ mile of multi-family buildings, with a preference for dedicated affordable housing Must be accessible to the public for overnight charging Includes cost recovery for City grant funding contributions through charging an adder and/or by receiving the Low Carbon Fuel Standard credits for charging delivered through chargers funded by City grant. Cost recovery should be designed so as not to make charging rates unattractive Charging must be provided at cost, including the cost of electricity, operation, charger head replacement, and any additional City charges such as a cost recovery adder Must be at least ¼ mile away from other publicly owned EV charging hubs City funding may be used to leverage other grant funding to provide additional publicly accessible chargers at other locations, so long as the original locations approved for City grant funds are built. Item 2. Attachment A - Guidelines for Public Agency EV Charging Hub Grant Program Item 2.: Staff Report Pg. 5 Packet Pg. 17 of 17