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HomeMy WebLinkAbout2025-03-21 Climate Action and Sustainability Committee Agenda PacketCLIMATE ACTION AND SUSTAINABILITY COMMITTEE Special Meeting Friday, March 21, 2025 Community Meeting Room & Hybrid 12:00 PM Amended Agenda Amended agenda items appear below in RED Climate Action and Sustainability Committee meetings will be held as “hybrid” meetings with the option to attend by teleconference 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@CityofPaloAlto.org 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. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@CityofPaloAlto.org 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 notaccepted. 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. 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 Section Added Staff Comments Committee Member Comments and Announcements ACTION ITEMS 1.Recommendation to Council to Direct Staff to Develop an Affordable Multi‐Family Housing Electrification Grant Program and to Approve a Budget Amendment in the Gas Utility Funds; CEQA Status: Under CEQA Guidelines section 15183, projects consistent with an existing general or comprehensive plan do not require additional CEQA review Title Updated, Late Packet Report Added 2.Recommendation to Council to Approve a Professional Services Contract with Franklin Energy to Administer a Full‐Service Whole home Electrification Program, Pending Final Negotiations; CEQA Status: Under CEQA Guidelines 15183, projects consistent with an existing general or comprehensive plan to not require additional CEQA review Title Updated, Late Packet Report Added FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s) ADJOURNMENT 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@cityofpaloalto.org. 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@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, orservice. 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.  1 March 21, 2025 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org. CLIMATE ACTION AND SUSTAINABILITY COMMITTEESpecial MeetingFriday, March 21, 2025Community Meeting Room & Hybrid12:00 PMAmended AgendaAmended agenda items appear below in REDClimate Action and Sustainability Committee meetings will be held as “hybrid” meetings withthe option to attend by teleconference or in person. Information on how the public may observeand participate in the meeting is located at the end of the agenda. The meeting will bebroadcast 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)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determind by the Chair. General public comment will be heard for30 minutes. Additional public comments, if any, will be heard at the end of the agenda. Publiccomments for agendized items will be accepted both in person and via Zoom for up to threeminutes or an amount of time determined by the Chair. Requests to speak will be taken until 5minutes after the staff’s presentation or as determind by the Chair. Written public commentscan be submitted in advance to city.council@CityofPaloAlto.org and will be provided to theCouncil and available for inspection on the City’s website. Please clearly indicate which agendaitem you are referencing in your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org 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 strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted. 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. 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 Section Added Staff Comments Committee Member Comments and Announcements ACTION ITEMS 1.Recommendation to Council to Direct Staff to Develop an Affordable Multi‐Family Housing Electrification Grant Program and to Approve a Budget Amendment in the Gas Utility Funds; CEQA Status: Under CEQA Guidelines section 15183, projects consistent with an existing general or comprehensive plan do not require additional CEQA review Title Updated, Late Packet Report Added 2.Recommendation to Council to Approve a Professional Services Contract with Franklin Energy to Administer a Full‐Service Whole home Electrification Program, Pending Final Negotiations; CEQA Status: Under CEQA Guidelines 15183, projects consistent with an existing general or comprehensive plan to not require additional CEQA review Title Updated, Late Packet Report Added FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s) ADJOURNMENT 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@cityofpaloalto.org. 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@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, orservice. 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. 2 March 21, 2025 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org. CLIMATE ACTION AND SUSTAINABILITY COMMITTEESpecial MeetingFriday, March 21, 2025Community Meeting Room & Hybrid12:00 PMAmended AgendaAmended agenda items appear below in REDClimate Action and Sustainability Committee meetings will be held as “hybrid” meetings withthe option to attend by teleconference or in person. Information on how the public may observeand participate in the meeting is located at the end of the agenda. The meeting will bebroadcast 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)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determind by the Chair. General public comment will be heard for30 minutes. Additional public comments, if any, will be heard at the end of the agenda. Publiccomments for agendized items will be accepted both in person and via Zoom for up to threeminutes or an amount of time determined by the Chair. Requests to speak will be taken until 5minutes after the staff’s presentation or as determind by the Chair. Written public commentscan be submitted in advance to city.council@CityofPaloAlto.org and will be provided to theCouncil and available for inspection on the City’s website. Please clearly indicate which agendaitem you are referencing in your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org 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 strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.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 notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.CALL TO ORDERPUBLIC COMMENTMembers of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number ofspeakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of theagenda.STANDING VERBAL REPORTS Section AddedStaff CommentsCommittee Member Comments and AnnouncementsACTION ITEMS1.Recommendation to Council to Direct Staff to Develop an Affordable Multi‐Family HousingElectrification Grant Program and to Approve a Budget Amendment in the Gas Utility Funds;CEQA Status: Under CEQA Guidelines section 15183, projects consistent with an existinggeneral or comprehensive plan do not require additional CEQA review Title Updated, LatePacket Report Added2.Recommendation to Council to Approve a Professional Services Contract with FranklinEnergy to Administer a Full‐Service Whole home Electrification Program, Pending FinalNegotiations; CEQA Status: Under CEQA Guidelines 15183, projects consistent with anexisting general or comprehensive plan to not require additional CEQA review TitleUpdated, Late Packet Report AddedFUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s) ADJOURNMENT 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@cityofpaloalto.org. 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@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, orservice. 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.  3 March 21, 2025 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org. CLIMATE ACTION AND SUSTAINABILITY COMMITTEESpecial MeetingFriday, March 21, 2025Community Meeting Room & Hybrid12:00 PMAmended AgendaAmended agenda items appear below in REDClimate Action and Sustainability Committee meetings will be held as “hybrid” meetings withthe option to attend by teleconference or in person. Information on how the public may observeand participate in the meeting is located at the end of the agenda. The meeting will bebroadcast 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)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determind by the Chair. General public comment will be heard for30 minutes. Additional public comments, if any, will be heard at the end of the agenda. Publiccomments for agendized items will be accepted both in person and via Zoom for up to threeminutes or an amount of time determined by the Chair. Requests to speak will be taken until 5minutes after the staff’s presentation or as determind by the Chair. Written public commentscan be submitted in advance to city.council@CityofPaloAlto.org and will be provided to theCouncil and available for inspection on the City’s website. Please clearly indicate which agendaitem you are referencing in your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org 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 strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.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 notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.CALL TO ORDERPUBLIC COMMENTMembers of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number ofspeakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of theagenda.STANDING VERBAL REPORTS Section AddedStaff CommentsCommittee Member Comments and AnnouncementsACTION ITEMS1.Recommendation to Council to Direct Staff to Develop an Affordable Multi‐Family HousingElectrification Grant Program and to Approve a Budget Amendment in the Gas Utility Funds;CEQA Status: Under CEQA Guidelines section 15183, projects consistent with an existinggeneral or comprehensive plan do not require additional CEQA review Title Updated, LatePacket Report Added2.Recommendation to Council to Approve a Professional Services Contract with FranklinEnergy to Administer a Full‐Service Whole home Electrification Program, Pending FinalNegotiations; CEQA Status: Under CEQA Guidelines 15183, projects consistent with anexisting general or comprehensive plan to not require additional CEQA review TitleUpdated, Late Packet Report AddedFUTURE MEETINGS AND AGENDASMembers of the public may not speak to the item(s)ADJOURNMENTPUBLIC COMMENT INSTRUCTIONSMembers 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@cityofpaloalto.org.2.For in person public comments please complete a speaker request card located on thetable at the entrance to the Council Chambers and deliver it to the Clerk prior todiscussion of the item.3.Spoken public comments for agendized items using a computer or smart phone willbe accepted through the teleconference meeting. To address the Council, click on the linkbelow 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 usingyour 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 inolder browsers including Internet Explorer. Or download the Zoom application ontoyour smart phone from the Apple App Store or Google Play Store and enter in theMeeting ID below.You may be asked to enter an email address and name. We request that youidentify yourself by name as this will be visible online and will be used to notify youthat it is your turn to speak.When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk willactivate and unmute speakers in turn. Speakers will be notified shortly before theyare called to speak.When called, please limit your remarks to the time limit allotted. A timer will beshown on the computer to help keep track of your comments.4. Spoken public comments for agendized items using a phone use the telephone numberlisted below. When you wish to speak on an agenda item hit *9 on your phone so weknow that you wish to speak. You will be asked to provide your first and last name beforeaddressing the Council. You will be advised how long you have to speak. When calledplease limit your remarks to the agenda item and time limit allotted.CLICK HERE TO JOIN    Meeting ID: 853 8091 8387   Phone: 1(669)900‐6833Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its publicprograms, services and meetings in a manner that is readily accessible to all. Persons withdisabilities 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@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, orservice. 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 March 21, 2025 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org. Climate Action and Sustainability Committee Staff Report Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: March 21, 2025 Report #:2503-4367 TITLE Affordable Housing Electrification Program Opportunity This report will be a late packet report published on March 20, 2025. Item 1: Staff Report Pg. 1 Packet Pg. 5 of 16  Item 1 Item 1 Staff Report Climate Action and Sustainability Committee Staff Report Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: March 21, 2025 Report #:2503-4368 TITLE Whole Home Electrification Program Phase 2 This report will be a late packet report published on March 20, 2025. Item 2: Staff Report Pg. 1 Packet Pg. 6 of 16  Item 2 Item 2 Staff Report Climate Action and Sustainability Committee Staff Report Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: March 21, 2025 Report #:2503-4392 TITLE Recommendation to Council to Direct Staff to Develop an Affordable Multi-Family Housing Electrification Grant Program and to Approve a Budget Amendment in the Gas Utility Funds; 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 recommend that the City Council: 1. Direct staff to develop a program to provide grants to replace existing affordable multi- family housing central and in-unit gas equipment with electric-only equipment; 2. Authorize staff to use up to $6.6 million in Gas Utility Cap and Trade Revenues for the program, and; 3. Amend the FY 2025 Budget Appropriation (requires a 2/3 vote) by: a. For the Gas Utility Funds: i. Increase Gas Resource Management Operating Expenses for Contract Services by $6.6 million; and ii. Decrease the Cap and Trade Reserve by $6.6 million EXECUTIVE SUMMARY Staff is recommending the Climate Action and Sustainability Committee recommend that Council adopt a $6.6 million affordable housing electrification retrofit grant program funded by Gas Cap and Trade revenues and reserves to help local affordable housing providers take advantage of State (and Federal if available) incentive programs. The program would have capacity to electrify systems serving up to 500 units and save 800 to 1,000 metric tons of carbon-dioxide equivalent (MT CO2-e) per year. The program fulfills 2023-2025 Sustainability and Climate Action Plan (S/CAP) Work Plan items 2.1(I) and 2.1(K) focused on affordable housing pilots and is consistent with the Council’s Climate Action and Housing priorities. Item 1: Late Packet Report Pg. 1 Item 1 Item 1 Late Packet Report BACKGROUND The S/CAP includes the goal of reducing carbon emissions 80% from 1990 levels by 2030, which requires extensive electrification of vehicles and buildings. There are 1,843 units of subsidized affordable rental housing in Palo Alto in 37 developments1, 299 below market rate (BMR) rental units in market-rate rental complexes, and 265 BMR ownership units in 48 market-rate condo developments. 2023-2025 S/CAP Work Plan work items 2.1(I) (Affordable Housing EV Charging and Electrification Pilot) and 2.1(K) (Multi-family and Affordable Housing Electrification and EV Charger Access Strategy Development) both focus on piloting scalable strategies for electrifying these units and providing EV charging. In addition, work item 4.A (Multi-Family and Commercial End Use Study) focuses on doing studies to identify opportunities for electrifying equipment in multi-family buildings. A Council-approved study of electrification opportunities in multi-family housing by Willdan in late 2024 involved several on-site surveys of affordable multi-family buildings. These studies, along with an independent study performed by another housing provider, identified aging equipment representing good opportunities for building electrification in six buildings with 428 units of affordable housing in them. Equipment nearing end of life across all six surveyed properties included six central water heaters, one central space heater, as many as 240 in-unit space heaters, and a central kitchen. The providers are ready or close to ready to replace the equipment and eager to electrify it, providing a unique opportunity to electrify equipment serving about 20% of the dedicated affordable units in Palo Alto. ANALYSIS Staff is recommending an affordable housing electrification program to take advantage of these opportunities. Electrifying multi-family building equipment is expensive and will not happen without incentives. State funding could provide substantial incentives to supplement the City’s program through the Low-Income Weatherization Program (LIWP) Multi-Family Program and the Technology and Equipment for Clean Heating (TECH) multifamily program. If the State were able to access Federal funding for the Home Energy Efficiency Retrofits and Residential Assistance (HEEHRA) program it would provide additional funding, but this is unlikely. Most housing providers will need local matching funds to be able to take advantage of these programs, particularly for in-unit improvements. Costs are estimated to average about $10,400 per unit for projects focused primarily on central systems and $34,500 for projects that include in-unit heating electrification as well. This implies a need for at least $6.3 million in local incentives to cover 100% of known project costs. If costs ended up being less than estimated, additional projects could be accommodated. 1 23 managed by Alta Housing, three by Front Porch, two by Eden, two by MidPen Housing, two by Abode, one by Bridge Housing, as well as Stevenson House, Terman Apartments, the Moldaw Residences, and the HomeKey transitional housing project still under development. Item 1: Late Packet Report Pg. 2 Item 1 Item 1 Late Packet Report Alternatives There are also several other alternatives the Committee could consider recommending with smaller budgets, as shown in Table 1. Table 1: Summary of Program Design Alternatives Alternative Benefit Tradeoff Budget Begin with smaller $4M budget, expand if needed Allows Council greater control over spending Requires additional time to expand program budget if additional funds are needed.$4 million Limit program to central equipment only Reduces the budget needed In-unit equipment will be costly and challenging to electrify. Not including it reduces opportunity to learn how to electrify it and will mean later pilots are more costly. $2.5 million Require a provider contribution so the City covers the incremental cost for electrification only. Reduces the budget needed Some providers may not move forward with projects due to insufficient capital. This risk could be mitigated by creating a loan program or a process for providers to apply for additional Council-approved grants. $4.7 million (plus $1.9 million if loan program were included) FISCAL/RESOURCE IMPACT The staff recommendation would be implemented using existing staff, but would increase program spending by up to $6.6 million, funded by the Gas Cap and Trade reserves. Those reserves are currently at $13.5 million, with projected annual revenues of $3 million to $4 million per year as authorized through 2030. This spending would not directly impact gas rates, but Gas Cap and Trade reserves can potentially be used to provide climate credits. $6.6 million is equivalent to about a 2% decrease in gas rates if spread over five years. The Finance Committee will be considering potential uses of the funding sources for this $6.6 million (and for other proposed Climate Programs in the FY 2026 Proposed Budget) before this item goes to Council for approval. The use of Gas Cap and Trade revenues is governed by Title 17 California Code of Regulations Section 95893(d), which requires that it be used for the primary benefit of retail natural gas ratepayers, subject to any limitations imposed by Council, and must be used for: •Energy efficiency, including energy efficiency equipment rebates, building retrofits and other projects that reduce energy demand; •GHG emissions reducing activities, which include projects to reduce gas leaks that are not mandated by federal, state or local health and safety requirements; •Non-volumetric return to some or all ratepayers in the form of a climate credit; •Administrative and outreach costs and educational programs. Item 1: Late Packet Report Pg. 3 Item 1 Item 1 Late Packet Report The Council adopted a policy on the use of Gas Cap and Trade Revenue on January 26, 2015 (Resolution 5397) and updated it October 3, 2022 (Resolution 10077),2 which stated that: The following uses of the City’s auction proceeds from the sale of Allocated Allowances are permitted, with a preference that greenhouse gas reduction measures be pursued before providing rebates: a.Investment in energy efficiency programs for the natural gas portfolio and retail customers; b.Purchases or investment in cost effective renewable bio-gas resources for the gas portfolio; c.Fuel switching from natural gas to electricity that reduces greenhouse gas emissions; d.Investment in other carbon reduction activities for the natural gas utility, including system maintenance or replacement to reduce fugitive gas emissions; e.Rebates to natural gas retail ratepayers. Rebates, if provided, must be allocated on a non- volumetric basis as stated in Title 17 CCR Section 95893 (d)(3). STAKEHOLDER ENGAGEMENT Affordable housing electrification has been discussed extensively as part of the stakeholder engagement for the S/CAP as a whole, and during adoption of the 2023-2025 S/CAP Work Plan, but this program has not received any stakeholder engagement due to the rapid turnaround needed to avoid missing out on access to State and Federal incentives. In developing this program staff consulted with various affordable housing providers to understand their needs and relied on studies performed by Willdan of various properties. ENVIRONMENTAL REVIEW Potential environmental impacts of residential electrification 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 the 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. APPROVED BY: Brad Eggleston, Director of Public Works 2 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=61567 Item 1: Late Packet Report Pg. 4 Packet Pg. 10 of 16  Item 1 Item 1 Late Packet Report Climate Action and Sustainability Committee Staff Report Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: March 21, 2025 Report #:2503-4394 TITLE Recommendation to Council to Approve a Professional Services Contract with Franklin Energy to Administer a Full-Service Whole Home Electrification Program, Pending Final Negotiations; CEQA Status: Under CEQA Guidelines section 15183, projects consistent with an existing general or comprehensive plan do not require additional CEQA review RECOMMENDATION Staff is negotiating a Professional Services Contract with Franklin Energy, and recommends that the Climate Action and Sustainability Committee recommend that the City Council: 1. Approve a 3-year contract with a not-to-exceed amount of $7,055,000 with Franklin Energy to administer a Full-Service home electrification program targeting single family homes, provided it includes the City’s standard Professional Services Agreement terms, conditions and scope requirements; 2. Authorize staff to use up to $1.43 million in Gas Utility Cap and Trade Revenues for the program; and 3. Amend the FY 2025 Budget Appropriation (requires a 2/3 vote) in the Gas Fund by: a. Increasing Gas Resource Management Operating Expenses for Contract Services by $1.43 million; and b. Decreasing the Cap and Trade Reserve by $1.43 million EXECUTIVE SUMMARY Staff is recommending the Climate Action and Sustainability Committee recommend that Council approve a 3-year professional services contract with Franklin Energy Services with a not-to-exceed amount of $7.055 million to administer a turnkey home electrification program as part of the Advanced Single-Family Electrification program. A turnkey, or full service program, involves incentives, just like a typical rebate program, but also includes a program operator who can help residents through the process of working out what kind of project is right for them and will find the contractor and handle permitting on their behalf. The City already provides this service for heat pump water heaters. This new program builds on the current residential program portfolio providing turnkey heat pump water heater installation service, technical advising on home electrification, and a suite of home electrification rebates. Item 2: Late Packet Report Pg. 1 Item 2 Item 2 Late Packet Report With this contract, the City will expand turnkey installation service beyond heat pump water heaters to help single-family residents throughout Palo Alto replace other kinds of gas appliances as well (e.g. furnaces, stoves) with efficient electric alternatives. It will also support City efforts to streamline permitting and other processes, experiment with new customer intake approaches to see how it affects program uptake, and build a critical mass of electrified homes to help others see that home electrification is viable. The program also provides data to support design of future programs. The proposed contract leverages the existing contracts and pricing between Franklin Energy and Silicon Valley Clean Energy and Peninsula Clean Energy. It uses pre-negotiated project costs that are competitively priced, with a far wider range of pre-negotiated cost items than the City’s existing full-service heat pump water heater program. The contract limits are adequate to serve an estimated 150 homes each year, and would save 250 metric tons of carbon-dioxide equivalent (MT CO2-e) per year, or 4,650 MT CO2-e over the lifetime of the newly electrified appliances if fully subscribed. The proposed budget covers only the first year of the contract (with mostly coincides with FY 2026). Future years would require additional budget allocations. The contract also includes an optional low-income program option that could be activated in the future if needed, serving as a backup to the City’s existing contract for these services with another provider. BACKGROUND Staff and the community have been working to achieve the community’s greenhouse gas (GHG) emissions goal of 80% reductions from 1990 levels by 2030. The goal was included in the Sustainability and Climate Action Plan (S/CAP) adopted in June 2023 along with the 2023-2025 S/CAP Work Plan.1 Work Plan Work Items 2.1D through 2.1H focus on establishing rebates and programs to facilitate single-family home electrification. A variety of rebates and programs have already been established as shown in Table 1. Table 1: Summary of Electrification Services Offered by City Equipment Services Service Launched Full-service replacement March 2023 Emergency replacement September 2024Heat pump water heater Rebate and/or technical assistance for residents who hire their own contractor 2017 Heat pump space heater and other equipment Rebate and/or technical assistance for residents who hire their own contractor January 2025 1 2023-2025 S/CAP Work Plan; https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/2023-2025- scap-work-plan_final.pdf Item 2: Late Packet Report  Pg. 2 Item 2 Item 2 Late Packet Report ANALYSIS Staff is proposing to expand the City’s residential electrification program services further to include a full-service (a.k.a. turnkey services) program component to help residents electrify home heating systems and gas end uses in addition to water heaters. With the addition of these services, staff is now referring to the entire suite of programs (including this program and the programs listed in Table 1 above) as the Advanced Single-Family Electrification Pilot Program. Launching this full-service program component requires a new contractual partner and additional funding in the FY 2025 budget. Staff is proposing to partner with Franklin Energy to run the full-service component of the program. Franklin Energy was selected by Peninsula Clean Energy (PCE) and Silicon Valley Clean Energy (SVCE) after a formal RFP process in 2023 with contracts approved by the boards of the two CCAs in February and March of 2024, respectively. The City will continue to handle most community outreach, generating leads. Franklin will provide customer intake, complete home assessments, help residents decide on an electrification plan, provide quotes, and manage the contractor to complete the project. They will also provide any post-installation support and issue resolution needed. Franklin currently has contracted with three sub-contractors to handle installations at customer sites, with plans to onboard additional contractors in the future. These contractors have agreed to provide fixed prices on electrification upgrades making electrification easier and price-transparent for residents. Total contract authority requested is $7.054 million over three years, including about $1.5 million in optional authority to launch a low-income program if needed, as shown in Table 2. Staff is currently finalizing key terms, conditions and scope with Franklin, and recommends approval of the contract provided it includes the City’s standard Professional Services Agreement terms, conditions and scope requirements. Staff estimates that 500-700 households require furnace replacements each year. The proposed budget is enough for about 150 homes. This is about 20% to 30% of annual replacements, a comparable market share to that accomplished by the heat pump water heater program. Item 2: Late Packet Report Pg. 3 Item 2 Item 2 Late Packet Report Table 2: Proposed Turnkey Home Electrification Annual Contract Authority Year 1 Year 2 Year 3 Program Set up $211,075 -- Ongoing Program concierge $369,294 $369,294 $369,294 Site Assessments $120,150 $120,150 $120,150 CPAU instant rebates $1,080,000 $1,080,000 $1,080,000 First Year Contract Expenditures (Yr 1)*$1,780,519 (optional) Low Income program $510,645 $491,730 $491,730 Total Optional & Future Year Program Budget $510,645 $2,061,174 $2,061,174 3-year Total (with 10% Addtl Services)$7,054,863 *First-year contract expenditures funded with $1.43M new budget request and remainder from existing Advanced Heat Pump Water Heater Pilot Program Budget. Future years or optional services will proceed only subject to budget appropriation. The first-year program budget would cover funding for up to 150 homes (up to $9,550 per home) plus $211,000 to set up the program, $369,000 per year for program administration, $120,000 per year for home electrification plans and technical assistance. FISCAL/RESOURCE IMPACT The first year of the program requires $1.78 million in budget authority to launch. The second and third years would require similar levels of funding if the program continued into future years. Of the first-year funding, $1.43 million represents a new budget request and the remainder comes from the already approved Advanced Heat Pump Water Heater Pilot Program budget, which was funded by a combination of Public Benefits and Gas Cap and Trade funding sources. If this program is recommended for approval, staff will recommend Council approve a $1.43 million amendment to the FY 2025 budget, funded from Gas Cap and Trade Reserves, to provide this authority. Future year funding would be considered through future year budget processes. Funding for low-income program services is already established in the approved FY 2025 budget using annual collected Public Benefits revenues, which exceed the amount needed for this purpose. Staff already has a provider for these services. Including the optional provision of low-income services in the contract enables a backup service provision. The Gas Cap and Trade reserves are currently at $13.5 million, with projected annual revenues of $3 million to $4 million per year as authorized through 2030. This spending would not directly impact gas rates, but Gas Cap and Trade reserves can potentially be used to provide climate credits. $1.45 million is equivalent to about a 0.5% decrease in gas rates if spread over five years. The Finance Committee will be considering potential uses of the funding sources for this $1.45 million (and for other proposed Climate Programs in the FY 2026 Proposed Budget) before this item goes to Council for approval. Item 2: Late Packet Report  Pg. 4 Item 2 Item 2 Late Packet Report The use of Gas Cap and Trade revenues is governed by Title 17 California Code of Regulations Section 95893(d), which requires that it be used for the primary benefit of retail natural gas ratepayers, subject to any limitations imposed by Council, and must be used for: •Energy efficiency, including energy efficiency equipment rebates, building retrofits and other projects that reduce energy demand; •GHG emissions reducing activities, which include projects to reduce gas leaks that are not mandated by federal, state or local health and safety requirements; •Non-volumetric return to some or all ratepayers in the form of a climate credit; •Administrative and outreach costs and educational programs The Council adopted a policy on the use of Gas Cap and Trade Revenue on January 26, 2015 (Resolution 5397) and updated it October 3, 2022 (Resolution 10077),2 which stated that: The following uses of the City’s auction proceeds from the sale of Allocated Allowances are permitted, with a preference that greenhouse gas reduction measures be pursued before providing rebates: a.Investment in energy efficiency programs for the natural gas portfolio and retail customers; b.Purchases or investment in cost effective renewable bio-gas resources for the gas portfolio; c.Fuel switching from natural gas to electricity that reduces greenhouse gas emissions; d.Investment in other carbon reduction activities for the natural gas utility, including system maintenance or replacement to reduce fugitive gas emissions; e.Rebates to natural gas retail ratepayers. Rebates, if provided, must be allocated on a non- volumetric basis as stated in Title 17 CCR Section 95893 (d)(3). Program promotion and outreach will be funded through the climate reduction outreach budget established in the FY 2025 Adopted Budget. The entire Advanced Single Family Electrification Pilot Program is projected to require 2 FTE of existing staff in CY 2025, with staff time requirements likely declining slightly once this new program is fully launched. STAKEHOLDER ENGAGEMENT Staff has done some level of stakeholder engagement for each of the programs listed above and intends to do more in development of new programs: •Staff held several Working Group and S/CAP Committee meetings on this program throughout 2023 and 2024. •Staff learned from participants in each of its existing programs through customer surveys and discussions with individual participants, as well as outreach to contractors. 2 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=61567 Item 2: Late Packet Report Pg. 5 Packet Pg. 15 of 16  Item 2 Item 2 Late Packet Report ENVIRONMENTAL REVIEW Potential environmental impacts of residential electrification 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 the 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. APPROVED BY: Brad Eggleston, Public Works Director Item 2: Late Packet Report Pg. 6 Item 2 Item 2 Late Packet Report