The URL can be used to link to this page

Home My WebLink About2026-10-02 Climate Action & Sustainability Committee Agenda PacketCLIMATE ACTION AND SUSTAINABILITY COMMITTEE Special Meeting Friday, October 02, 2026 Community Meeting Room & Hybrid 2:30 PM Climate Action and Sustainability Committee meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. The meeting will be broadcast live on YouTube https://www.youtube.com/c/cityofpaloalto. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/85380918387) Meeting ID: 853 8091 8387 Phone: 1(669)900-6833 PUBLIC COMMENTS General Public Comment for items not on the agenda will be accepted for up to three minutes or an amount of time determined by the Chair. In-person comments will be heard at the beginning of the agenda and remote comments will be heard at the end of the agenda. In- person general public comment will be heard for 30 minutes. Additional in-person 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 determined by the Chair. Written public comments can be submitted in advance to city.council@PaloAlto.gov and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. Multiple individuals who wish to speak on the same item may designate a spokesperson. Spokespersons must be representing five or more verified individuals who are present either in person or via zoom. Spokespeople will be allowed up to 10 minutes, at the discretion of the presiding officer. Speaking time may be reduced if the presiding officer reduces the speaking time for individual speakers. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@PaloAlto.gov at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other types of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. 1 October 02, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. CALL TO ORDER IN-PERSON PUBLIC COMMENT Members of the public may speak to any item NOT on the agenda. 1-3 minutes depending on number of speakers. In-person comments will be heard at the beginning of the agenda and remote comments will be heard at the end of the agenda. In-person Public Comment is limited to 30 minutes. Additional in-person public comments, if any, will be heard at the end of the agenda. STANDING VERBAL REPORTS A. Staff Comments B. Committee Member Comments and Announcements ACTION ITEMS 1. Update on Electric System Long Duration Resiliency; CEQA Status – Not a Project Late Packet Report Added FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s) VIRTUAL PUBLIC COMMENT Members of the public may speak to any item NOT on the agenda. 1-3 minutes depending on number of speakers. In-person comments will be heard at the beginning of the agenda and remote comments will be heard at the end of the agenda. In-person Public Comment is limited to 30 minutes. Additional in-person public comments, if any, will be heard at the end of the agenda. ADJOURNMENT 2 October 02, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@PaloAlto.gov. 2.For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3.Spoken public comments 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 using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 853 8091 8387 Phone: 1(669)900-6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329-2550 (voice) or by emailing ada@PaloAlto.gov. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 3 October 02, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $500 made within the last 12 months, you must disclose the campaign contribution before making your comments. 4 October 02, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. Climate Action and Sustainability Committee Staff Report Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: October 2, 2026 Report #:2609-6800 TITLE Update on Electric System Long Duration Resiliency; CEQA Status – Not a Project This item will be a late packet publication on 9/24/26. Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 1 Packet Pg. 5 of 10 Climate Action and Sustainability Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Utilities Meeting Date: October 2, 2026 Report #:2609-6732 TITLE Update on Electric System Long Duration Resiliency; CEQA Status – Not a Project RECOMMENDATION Staff recommends that the Climate Action and Sustainability Committee recommend that the City Council: 1. Direct staff to continue monitoring and provide updated estimates for local utility scale battery storage to the UAC with the 2028 Integrated Resource Plan 2. Direct staff to review and propose reasonable hazard mitigations with recommended capital improvement projects EXECUTIVE SUMMARY On March 2, 2026, the City Council accepted a report on the cost of local energy resources and improved reliability and resiliency1. The report found that local microgrids were not cost effective at this time but recommended continued engagement with the Utility Advisory Commission (UAC), Climate Action and Sustainability Committee (CASC), and the City Council regarding micro-grids and long-term resiliency. On an ongoing basis, utility staff are reviewing the market and publicly available information regarding the cost of local microgrids and battery energy storage systems (BESS). Because current costs indicate that microgrids do not present cost savings for customers, staff plan to continue to review pricing until market analysis suggests better value. Another assessment will be included with the next update of the City’s Integrated Resource Plan, which staff will begin updating in 2027 and planned to file in early 2028. Simultaneously, staff are beginning a review of the Electric Department’s preparedness to respond to large-scale events requiring a significant and sustained effort to restore electric 1 March 2, 2026 staff report to City Council; https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=822448ca-092b-465b-8859- 00ebddae3a2e Item {{item.number}} Item 1 Late Packet Report Item {{item.number}}: Staff Report Pg. 1 Packet Pg. 6 of 10 service. In the event of a large-scale natural disaster (earthquake, flooding, windstorm, wildfire, heat storm, etc.), local micro-grids could help isolated pockets of electric customers remain in power, but City staff would immediately need to begin the repair and restoration process for all other customers. The larger effort of restoring utility service citywide requires forethought, planning, and some capital investment. The Palo Alto Annex of the Santa Clara County Multi- Jurisdictional Hazard Mitigation Plan (MJHMP) identifies areas of the City’s electric system that could be strengthened to lessen the impact of major events. Over the next several months, staff will review utility projects identified in the MJHMP and existing Grid-Modernization (Grid- Mod) projects and consider impacts of major weather events over the expected life of the assets. This review will help to improve long-term resiliency under adverse conditions as well as support one of Grid-Mod’s primary goals of improving overall system reliability. BACKGROUND ANALYSIS 3 identified a cost for utility scale battery storage of $482/kWh, and NLR’s 2025 update4 saw a lowering of those costs to $334/kWh. The 2023 update also forecasted battery storage pricing ranging between $255/kWh and $403/kWh in 2030, with the 2025 update estimating storage costs at $147/kWh and $339/kWh by 2035. Both the 2023 and 2025 forecasts of future battery storage costs anticipate reductions in costs, but the expected reductions may fall within a wide range. 3 NLR Cost Projections for Utility-Scale Battery Storage 2023 Update https://docs.nlr.gov/docs/fy23osti/85332.pdf 4 NLR Cost Projections for Utility-Scale Battery Storage 2025 Update https://docs.nlr.gov/docs/fy25osti/93281.pdf Item {{item.number}} Item 1 Late Packet Report Item {{item.number}}: Staff Report Pg. 2 Packet Pg. 7 of 10 period. There are currently just under 27,000 residential customers connected to Palo Alto’s electric system. The NLR‘s forecasted costs of battery storage do not include land purchases and connected costs of solar or other local generation needed to replenish the battery storage to form an independent micro-grid. 7 For the City’s Electric Department, the Annex specifically names earthquake, heavy precipitation/atmospheric rivers, extreme heat/cold, high wind, wildfire, and sea level rise as hazards. It also lists mitigation measures that could make the electric system more resilient. Some of those mitigation measures have been completed, such as undergrounding overhead electric lines in the Foothills, while others are still being studied, such as mitigation measures addressing sea-level rise. The Annex presents a good starting point to identify additional mitigation measures and to estimate costs in preparation of potential funding through rate revenue and/or federal grant dollars. 7 Santa Clara County Multijurisdictional Hazard Mitigation Plan 2023 Update: City of Palo Alto Annex - https://www.paloalto.gov/files/assets/public/v/1/oes/plans/final_vol-ii-santa-clara-mjhmp_city-of-palo-alto- annex-1.pdf Item {{item.number}} Item 1 Late Packet Report Item {{item.number}}: Staff Report Pg. 3 Packet Pg. 8 of 10 of coastal flooding and sea-level rise, designating space within reconstructed substations for future battery storage, mitigating the impact of earthquakes through stronger and more resilient foundations, and building additional system capacity to prepare for future heat storms and increased demands on the electric system. 9. Should additional projects show a cost benefit, staff will bring the projects showing the largest benefit to cost ratio back to the UAC for further review and discussion. 10 (IRP), staff will perform a more detailed analysis of local, utility scale solar and battery storage. Staff’s updating of the IRP will begin in early 2027 with staff expecting to present initial results to the UAC in mid to late 2027. If local utility scale solar and battery storage show economic value to the community, they will be included in the IRP. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT 9 The National Laboratory of the Rockies tool for estimating the cost of outages is publicly available; https://icecalculator.com/ 10 Palo Alto 2023 Electric Integrated Resource Plan; https://www.paloalto.gov/files/assets/public/v/1/utilities/power-content-labels/2023-cpau-irp-report-final.pdf Item {{item.number}} Item 1 Late Packet Report Item {{item.number}}: Staff Report Pg. 4 Packet Pg. 9 of 10 - Consider long-term resiliency from the perspective of multiple days of power outages. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item {{item.number}} Item 1 Late Packet Report Item {{item.number}}: Staff Report Pg. 5 Packet Pg. 10 of 10