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HomeMy WebLinkAbout2025-04-04 Climate Action and Sustainability Committee Agenda PacketCLIMATE ACTION AND SUSTAINABILITY COMMITTEE Regular Meeting Friday, April 04, 2025 Community Meeting Room & Hybrid 1:30 PM Amended Agenda Amended Agenda Items Appear Below in Red Sustainability & Climate Action 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 on 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 determined 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 determined 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 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. CALL TO ORDER PUBLIC COMMENT Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. STANDING VERBAL REPORTS A.Staff Comments Section Updated Working Group Role Home Electrification Lawn Signs B.Committee Member Comments and Announcements ACTION ITEMS 1.Discussion of Preliminary Sustainability and Climate Action Plan (S/CAP) Funding Study Results; CEQA Status: Not a Project. Late Packet Report 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, or service. 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 April 04, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CLIMATE ACTION AND SUSTAINABILITY COMMITTEERegular MeetingFriday, April 04, 2025Community Meeting Room & Hybrid1:30 PMAmended AgendaAmended Agenda Items Appear Below in RedSustainability & Climate Action Committee meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. Information on how the publicmay observe and participate in the meeting is located at the end of the agenda. The meeting willbe broadcast on 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 determined by the Chair. General public comment will be heardfor 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 tothree minutes or an amount of time determined by the Chair. Requests to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item 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 A.Staff Comments Section Updated Working Group Role Home Electrification Lawn Signs B.Committee Member Comments and Announcements ACTION ITEMS 1.Discussion of Preliminary Sustainability and Climate Action Plan (S/CAP) Funding Study Results; CEQA Status: Not a Project. Late Packet Report 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, or service. 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 April 04, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CLIMATE ACTION AND SUSTAINABILITY COMMITTEERegular MeetingFriday, April 04, 2025Community Meeting Room & Hybrid1:30 PMAmended AgendaAmended Agenda Items Appear Below in RedSustainability & Climate Action Committee meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. Information on how the publicmay observe and participate in the meeting is located at the end of the agenda. The meeting willbe broadcast on 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 determined by the Chair. General public comment will be heardfor 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 tothree minutes or an amount of time determined by the Chair. Requests to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item 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 REPORTSA.Staff Comments Section UpdatedWorking Group RoleHome Electrification Lawn SignsB.Committee Member Comments and AnnouncementsACTION ITEMS1.Discussion of Preliminary Sustainability and Climate Action Plan (S/CAP) Funding StudyResults; CEQA Status: Not a Project. Late Packet ReportFUTURE MEETINGS AND AGENDASMembers 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, or service. 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 April 04, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CLIMATE ACTION AND SUSTAINABILITY COMMITTEERegular MeetingFriday, April 04, 2025Community Meeting Room & Hybrid1:30 PMAmended AgendaAmended Agenda Items Appear Below in RedSustainability & Climate Action Committee meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. Information on how the publicmay observe and participate in the meeting is located at the end of the agenda. The meeting willbe broadcast on 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 determined by the Chair. General public comment will be heardfor 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 tothree minutes or an amount of time determined by the Chair. Requests to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item 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 REPORTSA.Staff Comments Section UpdatedWorking Group RoleHome Electrification Lawn SignsB.Committee Member Comments and AnnouncementsACTION ITEMS1.Discussion of Preliminary Sustainability and Climate Action Plan (S/CAP) Funding StudyResults; CEQA Status: Not a Project. Late Packet ReportFUTURE 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, or service. 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 April 04, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. Climate Action and Sustainability Committee Staff Report Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: April 4, 2025 Report #:2503-4409 TITLE Discussion of Preliminary Sustainability and Climate Action Plan (S/CAP) Funding Study Results; CEQA Status: Not a Project. This report will be a late packet report published on March 27, 2025. Item 1. Item 1 Staff Report Item 1.: Staff Report Pg. 1 Packet Pg. 5 of 9  Climate Action and Sustainability Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: April 4, 2025 Report #:2503-4398 TITLE Discussion of Preliminary Sustainability and Climate Action Plan (S/CAP) Funding Study Results; CEQA Status - Not a Project RECOMMENDATION This is a discussion item and no action is requested. EXECUTIVE SUMMARY This report presents some preliminary findings from the Sustainability and Climate Action Plan (S/CAP) Funding Study to inform early discussions of strategies for scaling up climate action in 2026 and 2027. The City intends to communicate key preliminary results from the study, highlight potential strategies the results suggest could be successful, and lay out next steps to develop these potential strategies further in the coming months. The study shows that community electrification of buildings and vehicles (along with Vehicle Miles Traveled (VMT) reduction) is a net benefit at a community level. Building electrification is a net cost to the community, on average, while reducing vehicle use and adopting Electric Vehicles (EVs) yields a much larger net savings. The net benefits tend to be on a lifecycle basis, with electrification having a higher up-front cost than just replacing aging gas equipment with new gas equipment. The costs and benefits also accrue unevenly, with some parts of the community seeing greater benefits and some seeing greater costs. This means that the pathway the community takes to an electrified future makes a difference. A strong pathway will include compelling programs that support a clear community message along with a funding and financing strategy that matches costs to benefits. This report outlines potential strategies that staff can explore and next steps in that exploration. Staff will seek Committee feedback on the insights, potential strategies, and planned next steps. Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 2 Packet Pg. 6 of 9  BACKGROUND The City is working to achieve the community’s greenhouse gas (GHG) emissions goal of 80% reductions from 1990 levels by 2030 (80x30). 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 Item 5.B (Funding Alternatives) focuses on assessing the funding needed to achieve 80% reductions in emissions from 1990 levels and identifying potential sources of funding. After the City completed a solicitation process in fall of 2023, Council approved a contract with E3 (a Willdan company) in January 20242 to complete a funding study, a survey of potential funding sources, an EV charger needs assessment, and studies of electrification opportunities in non-residential and multi-family buildings. These studies are nearing completion. E3 used the best data available in regional databases, tailored to fit Palo Alto as much as possible, to do their estimates of the community costs to electrify. They supplemented this with on-site equipment surveys and planning-level engineering estimates for a sample of multi- family and non-residential buildings. But as with any analysis, uncertainties remain and a sensitivity analysis will need to be done to assess the largest financial risks to any potential strategy (for example, the risk that costs are higher than assumed in this model or benefits lower). ANALYSIS E3 analyzed three potential electrification scenarios: a “Low Local Action” scenario that involved moving at the pace of State and Regional building and vehicle electrification mandates, a “High Local Action” scenario involving a pace of electrification that meets the 80x30 goal, and one scenario at a pace between those two. Only the High Local Action scenario meets the 80x30 goal. Staff and the consultants anticipate that even with high adoption rates there are limits to how quickly the vehicle fleet can electrify, meaning there is a high value to building electrification and VMT reduction in achieving near term emissions reduction. In fact, to achieve 80% reductions in the High Local Action scenario, nearly an 80% reduction in building gas use from current levels is needed. Among the technologies studied, vehicles represented a net lifecycle savings for emissions reduction on a dollars per metric ton of carbon dioxide equivalent ($/MT CO2-e) basis, as did commercial HVAC. Most building electrification measures had a net lifecycle cost to the community, at least to some extent, with the lowest cost measures being residential building electrification and the highest being commercial water heating. However, most of these uses were only a net cost compared to methane gas and would show much more favorable results 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 2 Staff Report 2308 1939, January 16, 2024: https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateTyp e?id=3834&meetingTemplateType=2&compiledMeetingDocumentId=8890 Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 3 Packet Pg. 7 of 9  compared to biogas. Large industrial uses were estimated to have a high cost on a $/MT CO2-e basis, but more research is needed on these uses. The study found that community electrification combined with reductions in vehicle miles traveled (VMT) was a net lifecycle benefit in all scenarios, meaning the savings in natural gas, gasoline, and vehicle maintenance are projected to outweigh the up-front and operational costs of electrifying the community. Reductions to annual household expenses ranged from $400 to $1,750 for the sample customers studied. This suggests that a well-designed strategy that aligns costs with benefits would allow the community to successfully transition with minimal overall impacts. Given the higher up-front investment of electrified equipment, this can seem counter-intuitive, but considering 1) that much of the cost of transitioning (e.g. upgraded electrical systems) is a one-time cost, 2) the community savings and efficiency from only paying the costs of delivering one type of fuel (electricity) rather than three (electricity, natural gas, and gasoline), as well as 3) the lower energy use of electrified equipment, it can seem more intuitive. Designing an efficient pathway that aligns costs with benefits requires addressing that the up- front investment required to electrify is higher than the cost of just replacing existing gas equipment with new gas equipment, even if that higher investment will yield long-term savings. It also means addressing equity issues, renter-landlord split incentives, and differences in the amount of costs and benefits different groups experience within the community. Tools that the City can explore to address those issues and/or to lower City funding and financing sources needed include: o Leveraging customer bill savings via financing or an “Electrification as a Service” charge. o Paying out incentives over time instead of up-front. o Reflecting the cost of decarbonizing the gas system in the gas rates. The purchase of biogas would be one way to do this, and could be structured as a voluntary program. Other approaches may require state-level legal changes unless structured as a voluntary action for interested ratepayers. o Issuing debt to fund up-front incentives, with debt service over a longer time period like 30 years. Since many costs of transitioning to an all-electric community only need to be made one time (e.g. new electric conduit, panel upgrades, condensation drainage), 30 years is an appropriate period to pay off that debt. o Private financing is also a possibility, though the higher associated interest rates could increase the overall transition cost. All the approaches listed above require various types of internal review to determine the feasibility, including legal review and any legislative or regulatory barriers. As approaches are validated, they can be incorporated into new scenarios to be modeled using the S/CAP Funding Model. Staff tentatively intends to pursue the following next steps in the coming months. Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 4 Packet Pg. 8 of 9  •Keep validating the underlying model assumptions with stakeholders •Internal review of potential funding approaches followed by modeling of feasible approaches and additional discussions with the Committee. •Explore doing a community survey to understand customer attitudes toward climate action at this moment and willingness to fund programs •Deliver preliminary results from the Gas System Transition Study to inform potential operational savings and costs of abandonment •Complete a sensitivity analysis to assess potential risks (e.g., from costs being higher than assumed in the analysis) and mitigation approaches FISCAL/RESOURCE IMPACT The fiscal impact of pathways for scaling up electrification in Palo Alto will vary depending on how the strategy is designed. Pathways that rely more heavily on incentives would likely require additional City revenue sources, while pathways that involve financing with repayment costs offset by utility bill savings and incentives paid over time will require far fewer City resources and may be achievable without any additional City resource need. The City would prioritize identifying pathways that do not require rate or tax increases. But the study showed that even the most incentive-heavy scenarios, if funded by bonds paid off over 30 years, require new levels of funding that may seem reasonable to some Palo Altans. If collected on an energy basis, E3 estimated a funding need equivalent to an 8% increase in community energy costs. That equates to about a 4% increase in the median residential utility bill, or $15/month, and that would be offset by first-year annual savings (using 2025 utility rates) of $1,250 to $1,750 per household, savings that would only grow over time. The City is developing more specific proposals for pathways the Committee and other stakeholders can consider and will be prioritizing pathways that do not require new taxes or increases in utility rates. STAKEHOLDER ENGAGEMENT Staff had multiple discussions on this topic with the Council Climate Protection Ad Hoc Committee and its Working Group throughout 2024. Recognizing that these discussions are entering a new phase, staff will ensure that communications with the broader community are developed accordingly. ENVIRONMENTAL REVIEW The Climate Action and Sustainability Committee’s discussion of this item is not a project as defined by CEQA because the discussion of preliminary results from the S/CAP Funding Study does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Item 1. Item 1 Late Packet Report Item 1.: Staff Report Pg. 5 Packet Pg. 9 of 9