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HomeMy WebLinkAboutStaff Report 2605-6337CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, September 14, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     B.Information Report on Sustainability and Climate Action Plan Implementation, Calendar Year 2026 Quarters 1-2; CEQA Status - Not a Project City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Public Works Meeting Date: September 14, 2026 Report #:2605-6337 TITLE Information Report on Sustainability and Climate Action Plan Implementation, Calendar Year 2026 Quarters 1-2; CEQA Status - Not a Project RECOMMENDATION No City Council action is required. This is an update on Sustainability and Climate Action Plan (S/CAP) Implementation Progress in quarters one and two of calendar year 2026. It is provided to give the City Council and public an overview of S/CAP workplan items status since adopted by the City Council in June of 2023. EXECUTIVE SUMMARY The City is implementing the S/CAP to help meet its sustainability goals, including reducing greenhouse gas (GHG) emissions 80 percent below 1990 levels and achieving carbon neutrality by 2030. Since the S/CAP was adopted in June 2023, staff has provided implementation updates covering progress from Q3 2023 through Q4 2025. This update covers progress during Q1 and Q2 2026. Highlights of Q1 and Q2 2026 progress include: Climate Action 140 households signed up for phase two of the advanced home electrification program in only four months since its launch in February 2026. Concluded the commercial heat pump heating, ventilation, and air conditioning (HVAC) pilot project. By the end of the pilot, 20 customers had applied and 13 had entered the permitting process. Conducted extensive stakeholder engagement for the San Antonio Road Area Plan, including two Community Advisory Group meetings, one community workshop, and one community survey. These processes informed the land use and mobility alternatives and the core scenario that the City Council reviewed in Q2. Sustainability Installed 400 foundation piles and installed connection pipelines for the Local Advanced Water Purification System project at the Regional Water Quality Control Plant. Completed eucalyptus tree removal in the previously designated project area in Foothills Nature Preserve at minimal cost to the City due to an innovative partnership with West Valley College Park Management students. Increased focus on the connection between waste reduction and diversion and GHG emissions reduction in solid waste outreach and education campaigns. BACKGROUND In April 2016, the City Council adopted the goal of reducing GHG emissions 80 percent below 1990 levels by 2030,1 and in October 2022 the City Council adopted the ambitious goal of achieving carbon neutrality by 2030.2 Staff, with community and City Council input, referred to the 2016 S/CAP Framework and 2018-2020 Sustainability Implementation Plan to create a comprehensive S/CAP and Three-Year S/CAP workplan. In June 2023, the City Council adopted the 2022 Sustainability and Climate Action Plan, certified the Comprehensive Plan Environmental Impact Report Addendum: Update to the Sustainability and Climate Action Plan, and accepted the 2023-2025 S/CAP Workplan.3 The S/CAP is an ambitious plan to reduce the City and community’s GHG emissions, while also guiding how Palo Alto uses land and natural resources in ways that ensure quality of life for future generations. The S/CAP aligns with several goals of the 2030 Comprehensive Plan Implementation Plan. All previous S/CAP Implementation progress reports can be found in the S/CAP Program Reports section of the Sustainability Actions and Accomplishments page of the City website.4 The City Council accepted the 2026-2027 S/CAP Workplan on March 2, 2026.5 In the most recent years, annual City Council Priorities have included a priority relating to sustainability and climate action. For 2026, the City’s sustainability and climate action focus is instead incorporated into the City Council Values. On April 13, 2026, the City Council approved adding “Climate Leadership and Environmental Stewardship. Lead with urgency on climate action and adaptation, sustainability, and environmental protection for current and future generations” to the City Council Values.6,7 1 City Council, April 18, 2016; Agenda Item #10; SR #6754, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=79086&dbid=0&repo=PaloAlto 2 City Council, October 3, 2022; Agenda Item #9; SR #14720, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82036&dbid=0&repo=PaloAlto 3 City Council, June 5, 2023; Agenda Item #14; SR #2303- 1133, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=81648&dbid=0&repo=PaloAlto 4 Sustainability and Climate Action Plan (S/CAP) Progress Reports; https://www.paloalto.gov/City- Hall/Sustainability/Emissions-Reduction-Goals-and-Progress/Sustainability-Actions-and-Accomplishments 5 City Council, March 2, 2026; Agenda Item #9; SR #2602-5985, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86664&dbid=0&repo=PaloAlto 6 City Council, April 13, 2026; Agenda Item #9; SR #2604-6202, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87351&dbid=0&repo=PaloAlto 7 City Council, March 9, 2026; Agenda Item #11; SR #2602-6021, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86679&dbid=0&repo=PaloAlto ANALYSIS The City is committed to a sustainable future. The City owns, operates, and maintains a full- service utilities portfolio that provides electric, natural gas, fiber, water, refuse, and wastewater services to residents and businesses in Palo Alto. Palo Alto’s continued leadership in advancing sustainability goals has succeeded mainly because of the continued collaboration of community stakeholders, City departments, and the leadership of the City Council. The S/CAP Goals and Key Actions are divided into eight areas, four of which are climate-focused and include actions to achieve the City’s 80 x 30 and carbon neutrality by 2030 goals (Climate Action, Energy, Electric Vehicles, and Mobility) and four of which are focused on actions that create a sustainable natural environment and adapting to a warming climate (Water, Climate Adaptation and Sea Level Rise, Natural Environment, and Zero Waste). The Work Plan is similarly divided between climate-focused and sustainability-focused priorities. Climate Action Climate action S/CAP areas include Energy, Electric Vehicles (EVs), and Mobility. Energy and EVs: Single-Family CA1. Continue Advanced Home Electrification Pilot Program The City launched the second phase of the whole home electrification program. The first phase, launched in January 2025, offered new rebates and a contractor directory through the Rebate Hub, an online home electrification assessment tool, free phone consultation with an electrification expert, and financing through the state’s GoGreen program. As of May 31, 2026, the City had processed rebates for 204 heat pump HVAC projects, 78 heat pump water heaters, 33 electric panel upgrades, and 33 gas meter removal incentives. Additionally, 207 customers have completed the online home electrification assessment. The City launched phase two in February 2026 and offers an online hub to consider home upgrades with lasting community benefits. This second phase includes fixed prices for full service installations of heat pumps, induction stoves, and other home electrification measures. So far, over 140 households have signed up for these services, with 75 home assessments completed, 14 contracts signed for home electrification, and 3 project installations completed. CA2. Develop a Residential Electrification as a Service or Similar Financing Pilot for City Council Approval The S/CAP Funding Study, presented at a December 13, 2025 workshop of the City Council’s Climate Action and Sustainability Committee (CASC),15 found that more cost-efficient alternatives to up-front incentives were needed to expand programs to serve a greater share of the community, and that financing programs or “electrification as a service” programs inspired by existing “efficiency as a service” programs could serve that role. Efficiency as a service is a service where some or all of the up-front costs of an efficiency measure are funded by a service 15 Climate Action and Sustainability Committee, December 13, 2025; Agenda Item #A; SR #2507-5025, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=84040&dbid=0&repo=PaloAlto provider and repaid out of bill savings.17 The City is currently researching analogous financing programs at other agencies, designing the best way to integrate financing pilots with existing incentive programs, speaking with interested stakeholders, and studying how to administer these programs with the intent of launching a pilot by Q4 2026 or Q1 2027. CA3. Enhance Data Tracking for Home Electrification CA4. Launch Enhanced Multifamily EV Charging Infrastructure Program 18 staff is conducting research and vetting potential modifications to the EV charging infrastructure program. Program design concepts under consideration include options for multifamily-serving publicly accessible EV charging hubs and curbside charging deployments, considerations for charging-as-a-service (CaaS) on-bill financing pathways (see CA5 below), technical assistance to support load analysis for multifamily properties considering onsite EV charging and building electrification measures, lower-power and load-managed EV charging equipment options, multifamily property owner and tenant education and engagement activities, and income-qualified direct-to-customer incentives. With regard to curbside charging, in Q1 2026 the City was accepted into the Los Angeles Cleantech Incubator (LACI) City Climate Innovation Challenge to support development of a curbside charging pilot project. Staff intends to bring a preliminary plan for program design to CASC for feedback in the second half of 2026. CA5. Develop a Charging-as-a-Service or Similar Financing Pilot for City Council Approval 17 For a full definition of “efficiency as a service” see https://www.energy.gov/cmei/buildings/efficiency-service — note that “electrification as a service” programs would not necessarily need to include provider ownership as described on this page. “Inclusive utility investments” are another type of program an “electrification as a service” program could draw on for design features while not necessarily incorporating every feature: https://www.epa.gov/statelocalenergy/inclusive-utility-investments-tariffed-bill-programs 18 City Council, November 17, 2025; Agenda Item #3; SR #2508-5087; https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83873&dbid=0&repo=PaloAlto As noted in CA2, the S/CAP Funding Study found a need for cost-efficient alternatives to up- front incentives to be able to expand programs to serve more community members, such as financing or CaaS. The City is currently researching analogous financing programs at other agencies, designing the best way to integrate financing pilots with existing incentive programs, speaking with interested stakeholders, and studying how to administer these programs with the intent of launching a pilot by Q4 2026. CA6. Continue Affordable Multifamily Building Electrification Incentive Program CA7. Launch Multi-Family Electrification Technical Assistance CA8. Launch Advanced Heat Pump HVAC Program installation and received program rebates; seven of the initial 20 applicants have dropped out of the pilot. Preliminary findings from the pilot indicate that heat pump HVAC project quotes are about 7% higher than gas HVAC project quotes; however, heat pump HVAC costs can escalate significantly for complex projects, with two heat pump HVAC projects that far exceeded the gas HVAC replacement costs. Through the pilot, the City learned about permitting challenges including missing project documentation and in some cases, additional acoustic and structural analyses to comply with the City’s Planning ordinance and safety requirements. CA9. Develop a Commercial Electrification as a Service pilot or Similar Financing Pilot for City Council Approval CA10. Launch Workplace EV Charging Pilot CA11. Launch Pilot Program for Electrification of Centralized Water Heaters and Boilers CA12. Establish One or More Partnerships with Large Commercial Facility Owners In June 2026, the City Council approved a professional service agreement with a third-party consultant to provide electrification technical assistance to commercial customers.21 This technical assistance resource will help identify viable project opportunities and support grant recipients throughout the project lifecycle. The City aims to launch the grant program by Q4 2026 or Q1 2027. CA13. Develop S/CAP Funding and Financing Strategies for City Council Consideration 22 23 To complete that additional analysis, the City Council initiated an S/CAP Funding Study to complete that analysis in the 2023–2025 Work Plan. The City retained a consultant team to complete an S/CAP Funding Model, a study of the S/CAP goal to reduce emissions by 80% from 1990 levels by 2030, and several complementary studies (an EV Charger Needs Assessment, studies of electrification opportunities in multifamily and non-residential buildings, and a Funding Source Survey).24 These studies identified electrification opportunities to achieve a full 80% reduction in emissions and provided input data and a model to evaluate different electrification rollout scenarios and their financial implications. The studies also surfaced the need for program and financing models other than up-front incentives to reduce the cost to the City of community- wide electrification. This work gave staff the tools, data, and expertise to model actionable long-term strategies for community-wide electrification for City Council consideration. Staff received feedback on six potential strategies to model during a joint meeting of CASC and the Utilities Advisory Commission (UAC) on June 12, 2026.25 Staff intends to model these strategies 21 City Council, June 1, 2026; Agenda Item #8; SR #2605-6354, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887036&dbid=0&repo=PaloAlto 22 City Council, March 2, 2026; Agenda Item #9; SR #2602-5985, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86664&dbid=0&repo=PaloAlto 23 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 24 City Council, January 16, 2024; Agenda Item #4; SR #2308-1939, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82633&dbid=0&repo=PaloAlto 25 Climate Action and Sustainability Committee and Utilities Advisory Commission Joint Special Meeting, June 12, 2026; Agenda Item #1; SR #2605-6419, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887114&dbid=0&repo=PaloAlto in Q3 and Q4 2026 with the goal of taking the results back to both bodies in December 2026 or Q1 2027 for development of recommendations for City Council consideration. CA14. Develop Potential Regulatory Measures to Drive Climate Action 31 The City is evaluating which measures could have the greatest impact and is doing preliminary research work on various alternatives. Feedback from the June 12, 2026 joint UAC and CASC meeting (as discussed above in CA13) will also inform work on this item, and this work item will be coordinated with CA13, S/CAP Funding and Financing strategies, with the intent that local regulatory measures complement regional regulations and are coordinated and aligned with programs for cost-efficiency. CA15. Develop Carbon Neutrality Strategies for City Council Consideration CA16. Develop Potential Strategies for Cost-Based Pricing of Non-Electric Decarbonization and Inefficient Electrification CA17. Reduce Permitting, Interconnection, and Other Barriers to Adoption of Vehicle and Building Electrification and Flexible Energy Technologies for Reliability and Resiliency 31 Sustainability Committee, April 17, 2026; Agenda Item #1; SR #2602-5956, report.33 Both Utilities Engineering and Planning and Development Services are working on streamlining efforts related to these resources and to electrification, and this effort will summarize these efforts and identify any additional opportunities. CA18. Develop Public Charging Siting and Business Models A collaboration with the LACI 2026 City Climate Innovation Challenge cohort to pilot on- street charging in Palo Alto and other cities to develop best practices and reduce barriers to this approach to expanding EV charger access for multi-family buildings. The program includes partnerships with companies working in this space, technical assistance and partnership, and potentially funding. Development of mobility hubs, starting with public agency parking lots via development of a Public Agency EV Charging Hub grant program and partnership with PAUSD on obtaining a grant to facilitate publicly available charging at school sites near multi-family buildings. CASC reviewed the program design guidelines in June. The guidelines will be brought to the City Council for approval in August. CA19. Continue Grid Modernization 34,35 In the update, staff discussed the current approach to grid modernization for scope and cost-efficiency. The approach involves focusing on areas of 4kV to eliminate legacy infrastructure, improve reliability, and expand capacity to prepare for electrification (which involves about 2900 homes). In other areas of the residential sector, staff is upgrading the distribution as customers initiate work related to electrification (building and transportation electrification) while encouraging efficient electrification (e.g. shared EV charging) to minimize expected peak demands of electrification. This approach will reduce the overall cost of the grid-modernization effort and construct capacity expansions at the same time residential loads appear. The grid modernization project will also have an initial focus on upgrading substations and the sub-transmission system to improve reliability and expand 33 City Council, March 2, 2026; Agenda Item #10, SR #2508-5090, 34 Utilities Advisory Commission, January 7, 2026; Agenda Item #3; SR #2512-5638, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=85181&dbid=0&repo=PaloAlto 35 Climate Action and Sustainability Committee, March 6, 2026; Agenda Item #2; SR #2507-5030, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86701&dbid=0&repo=PaloAlto capacity to accommodate increased loads as needed. Utilities staff developed a detailed CIP, with specific projects and timelines, that was approved by the City Council on June 15, 2026.39 CA20. Develop Gas Transition Management Strategies In the fall of 2025 staff presented preliminary results from the Gas Transition Study to UAC and CASC while noting that the results were based on incomplete data sets.40, 41 The preliminary findings showed that if electrification proceeds mostly randomly, as is likely without targeted programs or interventions, few gas lines become candidates for abandonment until a large majority of the homes have electrified. As noted above in CA3, staff is working on improving the model’s data sources by merging various data sets to support an enhanced data tracking system. These data sets, once merged, can support the Gas Transition Study among other activities. The data set merger and updating of a physical baseline gas system model is anticipated to be complete in Q3 2026. Once completed, staff will begin running simulations of the updated physical gas model to identify any insights on where gas infrastructure can be eliminated and assess any customer class and rate impacts. Staff intends to return to UAC and CASC in early 2027 with results from the updated model. Mobility CA21. Achieve Benchmarks for Bicycle and Pedestrian Capital Improvement Projects The City will begin procurement for a transportation planning firm to finalize the South Palo Alto Bikeways Demonstration Project street design when a project manager is recruited to fill a recent vacancy. The South Palo Alto Bike/Ped Connectivity Project seeks to create a bicycle and pedestrian pathway across the Caltrain corridor above or below the tracks that will improve bicycle and pedestrian connectivity in south Palo Alto (south of Oregon Expressway) in support of the mobility and sustainability goals of the City. On December 1, 2025, the City Council reviewed eight shortlisted alternatives for the South Palo Alto Bike/Ped Connectivity Project and, based on recommendations from the Rail Committee and Staff, selected Alternative A (a crossing at El Dorado Avenue) as the preferred alternative, eliminating all other options from further consideration.42 Two variants of Alternative A were advanced: A1 (signalized crossing of Alma Street at El Dorado Avenue) and A2 (tunnel under both Alma Street and the Caltrain tracks). The City Council passed a motion to focus evaluations on Alternatives A1 and A2, with a preference for A2. Additional community engagement activities are planned for mid-2026 to 39 City Council, June 15, 206; Agenda Item C; SR #2601-5837, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887172&dbid=0&repo=PaloAlto 40 Utilities Advisory Commission, October 1, 2025; Agenda Item #2; SR #2502-4137, 41 Climate Action and Sustainability Committee, October 17, 2025; Agenda Item #2; SR #2507-5022, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83904&dbid=0&repo=PaloAlto 42 City Council, December 1, 2025; Agenda Item #18; SR #2507-4950, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=84110&dbid=0&repo=PaloAlto support the decision-making process and incorporate public feedback on the alternatives in the vicinity of El Dorado Avenue. CA22. Implement Micromobility Feasibility Study Recommendations 47 CA23. Continue Traffic Signal Operations and Multimodal Improvements CA24. Continue Implementing the Housing Element / Land Use Planning and Policy 48 Implementation activities in Q1 and Q2 2026 included progress on affordable housing, housing density, the Downtown Housing Plan, and the San Antonio Road Area Plans. This progress is aligned with S/CAP goals to reduce vehicle miles traveled and to adapt to the impacts of climate change. 47 City Council, March 2, 2020; Agenda Item #5; SR #11075, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=80712&dbid=0&repo=PaloAlto 48 City of Palo Alto 2023-2031 Housing Element, 2024; https://www.paloalto.gov/files/assets/public/v/1/planning- amp-development-services/housing-element/housing-element_2023_2031/palo-alto-housing-element.pdf Development Review application on May 7, 2026,51 and the project is anticipated to be heard by City Council for a decision in October 2026. 52 City Council consideration of a draft ordinance is anticipated to occur by Q4 2026, which would include recommended zoning incentives and updated development standards to support micro-units and senior housing units. 53 the City Council adopted two temporary ordinances, one to set residential densities near Cal Train stations and the other to exempt historic properties from SB 79 standards. Additionally, the City Council directed staff to resume and complete work on the Downtown Housing Plan. 54 Following these efforts, the City Council held an April 6, 2026,55 study session to review draft land use and mobility alternatives. On June 8, 2026,56 City Council reviewed a core scenario—including building heights, residential and commercial floor area, outdoor space, ground-floor retail, and near-term mobility improvements—that will then be analyzed in a detailed transportation analysis. This in turn will allow the City Council and the community to 51 Architectural Review Board, May 7, 2026; Agenda Item #2; SR 2601-5872, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87998&dbid=0&repo=PaloAlto&cr=1 52 Planning & Transportation Commission, April 8, 2026; Agenda Item # 2; SR 2602-5972, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87210&dbid=0&repo=PaloAlto 53 City Council, June 1, 2026; Agenda Item # 17; SR #2605-6397, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887027&dbid=0&repo=PaloAlto 54 San Antonio Road Area Plan Project Webpage, https://www.paloalto.gov/Departments/Planning-Development- Services/Housing-Policies-Projects/San-Antonio-Road-Area-Plan 55 City Council, April 6, 2026; Agenda Item # 3; SR #2603-6127; https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87034&dbid=0&repo=PaloAlto 56 City Council, June 8, 2026; Agenda Item # 15; SR #2603-6116, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887027&dbid=0&repo=PaloAlto understand traffic implications for the Plan before committing to a land use direction. Staff will return to City Council in Q4 2026 with a recommended land use and transportation plan framework, supported by this analysis, for a decision on the preferred alternative to carry into the administrative draft of the Area Plan and environmental review. CA25. Update City’s Traffic Calming Policy and Process CA26. Develop and Begin Implementing a City Facility Electrification Plan 19 CA27. Electrify City Vehicle Fleet when Feasible serving Palo Alto to a total of seven. New electric chargers for these heavy-duty vehicles were also added to the yard that GreenWaste uses on the former Los Altos Treatment Plant location on San Antonio Road in Palo Alto. CA28. Explore the Electric Capacity Needs of the Palo Alto Airport for Electric Aviation Sustainability S1. Implement Water Efficiency and Conservation Measures S2. Improve Recycled Water Quality through Salt Removal quality by blending reverse osmosis permeate with current recycled water produced to ultimately reduce the salt content and encourage expanded use of recycled water for non-potable uses such as irrigation. S3. Identify and Implement Water Distribution System Adaptation Measures Adaptation: Sea Level Rise S4. Finalize Partnership Agreement with Santa Clara County on SB272 Regional Shoreline Adaptation Plan Requirements to Develop a Regional Vulnerability Assessment and Adaptation Plan 63, which initiated new statewide requirements for local sea level rise adaptation planning. On September 30, 2025, Santa Clara County Office of Sustainability was awarded a $2.6 million Ocean Protection Council grant to develop a multi- jurisdictional “subregional” sea level rise vulnerability assessment and adaptation plan for RSAP project partners which include Palo Alto, Mountain View, Sunnyvale, San Jose, Milpitas and Santa Clara. The grant partnership will complement Palo Alto’s sea level rise planning work to date, provide a project funding strategy and cost of inaction, CEQA determination, a list of potential projects, and ensure that social equity considerations have been properly vetted. The County is currently finalizing the grant agreement with the Ocean Protection Council and aims to begin work before the end of 2026. S5. Update the City's Sea Level Rise Adaptation Policy to Include Sea Level Rise Planning Decision-Making Points in the City S6. Complete Construction and Begin Monitoring the Palo Alto Horizontal Levee Pilot Project S7. Continue Partnership with Valley Water on Sea Level Rise / Shoreline Levee Improvement Efforts 63 San Francisco Bay Conservation and Development Commission; https://www.bcdc.ca.gov/regional-shoreline- adaptation-plan-bpa-1-24/ monitor opportunities to re-open the USACE study to align or start in advance of this time horizon. S8. Implement the Foothills Fire Management Plan 65 S9. Increase Tree Canopy in South Palo Alto 65 City Council, November 3, 2025; Agenda Item #2; SR #2510-5338, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83775&dbid=0&repo=PaloAlto The City will publish the new Tree and Landscape Technical Manual by the end of calendar year 202667. The primary focus is on preserving and growing urban canopy during development. Included in the new manual are an updated Model Water Efficient Landscape Ordinance process, revised tree replacement calculations that account for canopy size of the replacement tree(s) and updated in-lieu fee for when planting trees on site is not feasible. S10. Reduce Pesticide Use in Parks and Open Space S11. Construct a Green Stormwater Infrastructure Project at a City of Palo Alto Park 68 The 10% design of the project was completed in June. Public outreach is planned for later in 2026. Completion of the design is expected in summer 2027. S12. Increase Green Stormwater Infrastructure on City of Palo Alto Property and/or Right-of- Way S13. Quantify Land Area that Uses Green Stormwater Infrastructure to Treat Urban Water Runoff S14. Champion Waste Prevention, Reduction, Reusables, and the Sharing Economy 67 Palo Alto Municipal Code Title 8; https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0- 65799 68 City Council, March 2, 2026; Agenda Item #7; SR #2510-5363, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86685&page=64&dbid=0&repo=PaloAlto&searchid =ec9d156c-d38d-4eed-8c20-ec23c874df14 outreach channels including utility bill inserts and announcements, advertisements in local newspapers, multiple newsletters, and content distributed through the various City social media platforms and at special events in the community. Additionally, the City has added specific Zero Waste outreach messages and focused campaigns to the digital monitors at the City’s libraries and continuously provides technical assistance to residents and businesses. S15. Eliminate Single-Use Disposable Containers and Reduce Disposable Foodware S16. Promote Food Waste Reduction C1. Build Awareness about Sustainability and Climate Action and City Programs Available to the Community C2. Drive Community Actions to Achieve S/CAP Goals C3. S/CAP Data Collection and Annual Reporting Build Awareness & Drive Community Action In 2026, enhanced communications and marketing efforts are planned connecting residents to resources, building awareness of the City's sustainability and climate action goals and programs, and celebrating key milestones. Key messages will continue to focus on reducing emissions through home upgrades, switching to electric to support cleaner air and community health benefits, ease of City's programs saving time and money, and the importance of taking local action to advance community goals. A key focus is increasing digital communication engagement through a new weekly social media series designed to build awareness, “Small Habits, Big Impact,” finalizing a campaign focused on the City’s progress towards reducing emissions by 80%, launching a community toolkit with messages to share with neighbors, and new messaging to engage and build awareness of ways to take action. New website resources launched in Q1 as enhancements to programs were implemented to support increased community engagement with new program elements. In addition to existing advertising through Google, Facebook, and Instagram, the City began using Nextdoor ads to reach residents in a variety of ways. This is in addition to sending mailers to residents, digital newsletters and email updates, and distributing utility bill inserts and flyers to City facilities and events. The City incorporated messaging into its awareness outreach about cleaner indoor air quality, community health, and other health aspects focusing on the benefits of switching to electric appliances over gas. Additional work is underway and to be completed this fall to expand on City online resources sharing health risks associated with gas use. Staff hosted the Earth Day Festival with over 400 engaged attendees, and other engagement such as continuing to partner with Silicon Valley 350 and home electrification outreach, Home Electrification Webinar and launching a library induction cooktop loaner kit. S/CAP Data Collection & Annual Reporting Staff is reporting regular updates to CASC on progress building awareness, driving community action, and data and analytics. At the April meeting, staff provided an annual update on work planned for 2026, a look back at 2025 analytics, which is being used as the benchmark work to date.71 FISCAL/RESOURCE IMPACT Current and future initiatives will be managed and funded across various departments and funds. No new funding is needed at this time, and the implementation of this 2026-2027 S/CAP Work Plan is subject to the standard budget appropriation process. Some items in other work plans are also relevant to the S/CAP Work Plan. The Utilities Strategic Plan, for example, 71 Climate Action and Sustainability Committee, April 17, 2026; Agenda Item #2; SR #2604-6205, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87361&dbid=0&repo=PaloAlto includes workforce development and advanced metering infrastructure work items that are directly relevant to S/CAP. Some of these may involve future budget requests as well. STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Attachment A: 2026-2027 S/CAP Work Plan Status = Completed = In Progress = Delayed / On Hold = Ongoing Item No. Work Plan Item Status CA1 Continue Advanced Home Electrification Pilot Program CA2 Develop a Residential Electrification as a Service of Similar Financing Pilot for Council Approval CA3 Enhance Data Tracking for Home Electrification CA4 Launch Enhanced Multifamily EV Charging Infrastructure Program CA5 Develop a Charging-as-a-Service (CaaS) or Similar Financing Pilot for Council Approval CA6 Continue Affordable Multifamily Building Electrification Incentive Program CA7 Launch Multi-Family Electrification Technical Assistance CA8 Launch Advanced Heat Pump HVAC Program CA9 Develop a Commercial Electrification as a Service pilot or Similar Financing Pilot for Council Approval CA10 Launch Workplace EV Charging Pilot CA11 Launch Pilot Program for Electrification of Centralized Water Heaters and Boilers CA12 Establish One or More Partnerships with Large Commercial Facility Owners CA13 Develop S/CAP Funding and Financing Strategies for City Council Consideration CA14 Develop Potential Regulatory Measures to Drive Climate Action CA15 Develop Carbon Neutrality Strategies for City Council Consideration CA16 Develop Potential Strategies for Cost-Based Pricing of Non-Electric Decarbonization and Inefficient Electrification CA17 Reduce Permitting, Interconnection, and Other Barriers to Adoption of Vehicle and Building Electrification and Flexible Energy Technologies for Reliability and Resiliency CA18 Develop Public Charging Siting and Business Models CA19 Continue Grid Modernization CA20 Develop Gas Transition Management Strategies CA21 Achieve Benchmarks for Bicycle and Pedestrian Capital Improvement Projects CA22 Implement Micromobility Feasibility Study Recommendations CA23 Continue Traffic Signal Operations and Multimodal Improvements CA24 Continue Implementing the Housing Element / Land Use Planning and Policy CA25 Update City’s Traffic Calming Policy and Process CA26 Develop and Begin Implementing a City Facility Electrification Plan CA27 Electrify City Vehicle Fleet when Feasible CA28 Explore the Electric Capacity Needs of the Palo Alto Airport for Electric Aviation S1 Implement Water Efficiency and Conservation Measures S2 Improve Recycled Water Quality through Salt Removal S3 Identify and Implement Water Distribution System Adaptation Measures S4 Finalize Partnership Agreement with Santa Clara County on SB272 Regional Shoreline Adaptation Plan Requirements to Develop a Regional Vulnerability Assessment and Adaptation Plan S5 Update the City's Sea Level Rise Adaptation Policy to Include Sea Level Rise Planning Decision-Making Points in the City S6 Complete Construction and Begin Monitoring the Palo Alto Horizontal Levee Pilot Project (PAHLPP) S7 Continue Partnership with Valley Water on Sea Level Rise / Shoreline Levee Improvement Efforts S8 Implement the Foothills Fire Management Plan S9 Increase Tree Canopy in South Palo Alto S10 Reduce Pesticide Use in Parks and Open Space S11 Construct a Green Stormwater Infrastructure Project at a City of Palo Alto Park S12 Increase Green Stormwater Infrastructure on City of Palo Alto Property and/or Right-of-Way S13 Quantify Land Area that Uses Green Stormwater Infrastructure to Treat Urban Water Runoff S14 Champion Waste Prevention, Reduction, Reusables, and the Sharing Economy S15 Eliminate Single-Use Disposable Containers and Reduce Disposable Foodware S16 Promote Food Waste Reduction C1 Build Awareness about Sustainability and Climate Action and City Programs Available to the Community C2 Drive Community Actions to Achieve S/CAP Goals C3 S/CAP Data Collection and Annual Reporting