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City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Public Works
Meeting Date: November 12, 2024
Report #:2407-3266
TITLE
Annual Report on Sustainability and Climate Action Plan (S/CAP) Implementation: 2022 Greenhouse Gas Inventory, Quarterly S/CAP Progress Report, and S/CAP Key Performance Indicators Annual Progress Report; CEQA status - Not a Project
RECOMMENDATION
Staff recommends that the City Council review the Sustainability and Climate Action Plan (S/CAP) Implementation Progress through the second and third quarters of calendar year 2024, the Palo Alto Citywide Greenhouse Gas (GHG) Inventory for calendar year 2022, the Palo Alto Municipal GHG Inventory for calendar year 2022, and the S/CAP Key Performance Indicators (KPI) Annual Progress Report for calendar year 2023.
EXECUTIVE SUMMARY
The City is implementing the Sustainability and Climate Action Plan (S/CAP) to help the City meet its sustainability goals, including its goals of reducing greenhouse gas (GHG) emissions 80% below 1990 levels by 2030 (the “80 x 30” goal) and achieving carbon neutrality by 2030.
Since the S/CAP was adopted in June 2023, staff has provided three implementation updates, covering progress in Q3 2023, Q4 2023, and Q1 2024. Unlike previous quarterly updates, this update includes two quarters of progress. This report was coordinated with the Climate Protection Ad Hoc Committee.
This report includes the 2022 Palo Alto Citywide GHG Inventory (Attachment A), a comparison between the 1990 and 2022 Citywide GHG Inventories (Attachment B), the 2022 Palo Alto Municipal GHG Inventory (Attachment C), and the S/CAP Key Performance Indicators for calendar year 2023 (Attachments D and E). These reports show that Palo Alto has made significant progress toward its goal, with a 47.4% decrease in total community emissions from 1990 levels as of 2022, despite a population increase of 21.3% during that same time period.
Emissions increased slightly from 2020 to 2022, as was expected due to the temporary effects of the pandemic (reduced transportation emissions due to remote work and an economic downturn).
Despite the progress made toward the 80 x 30 goal, a “straight-line” approach to measuring
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progress would suggest the community should have achieved a 64% decrease from 1990 emissions in 2022. This result is expected, as the S/CAP and the 2023-2025 Work Plan include an approach of piloting programs and completing studies that are intended to lead to scaling those programs more widely, with accelerating GHG reduction results. Work underway on pilot programs and the S/CAP Funding Study will help to define upcoming work and the strategic balance between incentives and mandates. Ultimately, the S/CAP and the 80 x 30 goal are a community partnership whose success requires extraordinary programs offered by the City and strong engagement and participation by community members.
The “Climate Action” section of the report summarizes efforts to achieve the City’s 80x30 goal through implementation of the 2023-2025 S/CAP Work Plan Climate Action sections. Broadly, this work plan involves:
•Modernizing the grid to improve reliability, resiliency, and to enable electrification •Implementing programs to help the community electrify
•Raising awareness and promoting these programs
•Completing studies to inform decisions about how to manage the electrification transition
Grid modernization is proceeding, with the first pilot neighborhood (about 900 homes) due to be completed by early 2025. The goal is to complete Phase 1 (approximately 5000 homes) by the end of 2025 and Phases 2 and 3 (each approximately 5000 homes) by the end of 2026 and 2027, respectively. The modernization project will replace aging infrastructure, which will preserve and improve reliability, add greater networking to the system, reduce the impact of outages, and increase grid capacity and modernize it to accommodate widespread electrification. The City also continues to work on adding a second transmission line. More broadly, efforts at the state level to improve transmission reliability and expand electricity generation and battery storage are setting California on a path to be able to absorb the additional electric load from electrification with enhanced reliability.
In the meantime, City staff is launching programs to help residents and businesses electrify, including a heat pump water heater pilot program that has far greater participation than any other staff knows of in the region or California, a multi-family building EV charger program that has already created EV charger access in multi-family buildings representing 6% of Palo Alto multi-family units, with another 7% in the pipeline, and a pilot commercial rooftop HVAC program staff is using to learn how to make the process of HVAC electrification easier. A whole- home electrification program is being launched in early 2025, the incentives for which can be seen in Attachment F. These efforts are facilitated by a large-scale outreach effort using innovative outreach and communication techniques to drive program participation. The launch of these programs has influenced other agencies in the region to adopt similar programs, with all agencies sharing best practices with each other.
In parallel, studies are in progress on how to effectively electrify equipment in multi-family and non-residential buildings, strategies to expand e-mobility access and EV charging, how to fund and finance larger scale climate programs, how to incorporate efficient electrification strategies 3 8
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and flexible energy technologies into electric grid planning, and how to manage the gas utility through an electrification transition. Some of these studies are receiving grant funding from the American Public Power Association with the intent of sharing the results nationally with other publicly owned utilities to help them take similar steps.
In parallel with its efforts to slow climate change, the City is taking action to adapt to climate change that is already happening, including efforts to mitigate the potential for wildfires in the Foothills and planning for sea level rise. Sea level rise planning work includes completing a vulnerability assessment, which was finished in 2022, coordinating regionally on building levees to protect Palo Alto and neighboring cities from storm surges, and reducing San Francisquito Creek flood potential.
The City continues to make progress on an efficient and resilient water system through water conservation, reducing salinity in its recycled water to make it more usable, and investigation of future water supplies through the One Water Plan. Staff is developing estimates of the carbon storage capabilities of its urban canopy and enhancing that canopy through implementation of the Tree Protection Ordinance. Other protections to the local natural environment include expansion of green stormwater infrastructure and reduced use of pesticides in parks and open space. Progress on Zero Waste goals continues with work on an edible food recovery program and exploring domestic recyclables processing and elimination of single-use food containers.
More detailed updates on these topics can be found in the “Sustainability” section of this report.
BACKGROUND
In April 2016, the City Council adopted the goal of reducing GHG emissions 80% below 1990 levels by 2030 (the “80 x 30” goal),1 and in October 2022 the City Council adopted the ambitious goal of achieving carbon neutrality by 2030.2 Staff, with community and the City Council input, referred to the 2016 Sustainability and Climate Action Plan (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,3 certified the Comprehensive Plan Environmental Impact Report Addendum: Update to the 1 City Council, April 18, 2016; Agenda Item #10; SR #6754, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2016/id-6754.pdf
2 City Council, October 3, 2022; Agenda Item #9; SR #14720, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20221003/20221003accsm-amended-presentations.pdf#page=131 3 2022 Sustainability and Climate Action Plan;
https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/2022-scap-report_final.pdf 3 8
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Sustainability and Climate Action Plan,4 and accepted the 2023-2025 S/CAP Workplan.5 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.6
The first S/CAP implementation update included progress through Q3 2023 and was introduced in November.7 The second S/CAP Implementation update included progress through Q4 2023 and was introduced in February.8 The third S/CAP Implementation update included progress through Q1 2024 and was introduced in May.9
The 2022 S/CAP and 2023-2025 S/CAP Work Plan align with one of the four Council Priorities for CY 2024: “Climate Change & Natural Environment: Protection and Adaptation.” In addition, there are several overlapping Council Priority Objectives, the status of which can be found in the 2024 Council Priority Objectives Q2 Report.10 This report references the Council Priority Objectives in parentheses where applicable.
Both the Palo Alto Citywide and Municipal GHG Inventories calculate emissions for calendar year 2022. As a result of various City-led initiatives, programs, and activities focused on climate change and sustainability, by the end of 2022, Palo Alto reduced citywide GHG emissions an estimated 47.4%, despite a population increase of 21.3% during that same time period. Due to changes in methodology, it is not possible to do a full comparison of the 2022 Municipal GHG Inventory with previous inventories.
In previous years, the GHG Inventories were presented to the City Council around Earth Day, April 22. However, moving forward, in order to better align with data availability and the cadence of quarterly S/CAP Implementation Updates, future GHG Inventories will be presented 4 Comprehensive Plan Environmental Impact Report Addendum: Update to the Sustainability and Climate Action Plan, 2023; https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas- minutes/city-council-agendas-minutes/2023/2023comprehensive-plan-environmental-impact-report-addendum- update-to-the-scap.pdf
5 2023-2025 S/CAP Workplan, 2023;
https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/2023-2025-scap-work-plan_final.pdf 6 2030 Comprehensive Plan; https://www.cityofpaloalto.org/Departments/Planning-Development- Services/Housing-Policies-Projects/2030-Comprehensive-Plan 7 City Council, November 13, 2023; Agenda Item #11; SR # 2308-1901, https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/cy2023-q3-informational-report-on- sustianability-and-climate-action-plan-scap.pdf
8 City Council, February 5, 2024; Agenda Item #15; SR # 2312-2348, https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/cy2023q4-informational-report-on- sustainability-and-climate-action-plan-scap.pdf
9 City Council, May 20, 2024; Agenda Item #15: SR #2404-2840, https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/cy2024-q1-informational-report-on- sustainability-and-climate-action-plan-scap.pdf
10 City Council, August 19, 2024; Agenda Item #15; SR #2408-3334, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=a254d349-012e-417e-8404-3559d52c5887 3 8
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to the City Council with the Q2 S/CAP Implementation Update, typically in August.
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 commitments has succeeded mainly because of the continued collaboration of community stakeholders, City departments, and the leadership of the City Council.
Palo Alto’s 2022 Citywide Greenhouse Gas Emission Inventory In 2022, Palo Alto emitted an estimated 410,157 metric tons (MT) of carbon dioxide equivalent (CO2e) from the residential, commercial, industrial, transportation, waste, water, and municipal sectors.11 In comparison to the 1990 base year emissions (which were about 780,000 MT), that is a 47.4% decrease in total community emissions, despite a population increase of 21.3% during that same time period. This equates to 6.1 metric tons of carbon dioxide equivalent (MT CO2e) per Palo Alto resident in 2022 compared to 14 MT CO2e per Palo Alto resident in 1990.
The California Air Resources Board’s 2017 Scoping Plan Update recommends a goal for local governments of 6 MT C02e per capita by 2030.
Of the reduction to-date, 50.3% came from achieving carbon neutrality for the City’s electricity portfolio, 21.8% from declines in transportation emissions, 13.2% from reduction in natural gas (methane12) consumption, 13% from declines in solid waste emissions, and 1.6% percent from declines in wastewater-related emissions.
For citywide emissions sources in 2022, 54.1% are from on-road transportation, 35.4% are from natural gas (methane) use, and the remainder are from other sources. A comparison of 1990, 2019, 2020, 2021, and 2022 Citywide GHG emissions is shown in Natural gas (methane) combustion GHG emissions are 25.3% lower than 1990 levels, however natural gas (methane) GHG emissions in the commercial sector increased 12.6% since 2021. While natural gas (methane) usage fluctuates based on factors such as weather and occupant behavior, the increase in natural gas (methane) emissions in the commercial sector is likely due to increased occupancy of commercial buildings as employees return to the office, filling commercial building vacancies, and economic recovery - including increased dining, shopping, and visitors returning to Palo Alto.
Figure 1: 1990 vs 2022 Citywide GHG Emissions by Sector . Additional existing emissions sources that were missing from the 1990 GHG inventory were included in the 2022 GHG inventory to comply with the GPC Basic protocol (Airport Emissions, 11 Carbon dioxide equivalent is a unit of measure that normalizes the varying climate warming potencies of all six GHG emissions, which are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). For example, one metric ton of nitrous oxide is 210 metric tons of CO2e.
12 Methane, which is the primary component of natural gas, is a very potent greenhouse gas, with a global warming potential that is 25 times higher than CO2 over a 100-year period. 3 8
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Off-road Vehicles, Caltrain Commuter Rail, Composting, and Palo Alto Landfill Gas Flaring). The full 2022 Citywide GHG inventory can be found in Attachment A. The full comparison between the 1990 and 2022 inventories can be found in Attachment B.
As shown in Figure 1, total GHG emissions steadily decreased between 1990 and 2021.
However, GHG emissions increased by about 14% between 2021 and 2022. The main drivers of the increase between 2021 and 2022 include GHG emissions from transportation and mobile sources, and natural gas (methane) combustion in the commercial sector. Although GHG emissions from transportation and mobile sources are 24.3% lower than 1990 levels, this sector increased by 18.8% between 2021 and 2022. This increase is primarily driven by increased on- road vehicle miles traveled (VMT), but is also partly due to an improved methodology for the 2022 inventory that better accounts for emissions factors for differing vehicle classes and to increases in off-road vehicle and Caltrain emissions. In 2022, total on-road VMT increased by 12% since 2021, likely due to the shift away from pandemic-level (reduced) driving frequency, returning to the office after working from home, and economic recovery.
Natural gas (methane) combustion GHG emissions are 25.3% lower than 1990 levels, however natural gas (methane) GHG emissions in the commercial sector increased 12.6% since 2021.
While natural gas (methane) usage fluctuates based on factors such as weather and occupant behavior, the increase in natural gas (methane) emissions in the commercial sector is likely due to increased occupancy of commercial buildings as employees return to the office, filling commercial building vacancies, and economic recovery - including increased dining, shopping, and visitors returning to Palo Alto.
Figure 1: 1990 vs 2022 Citywide GHG Emissions by Sector As shown in Figure 2, the two largest categories of emissions are transportation and mobile sources (including on-road transportation, airport emissions, off-road vehicles, and Caltrain
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commuter rail) and natural gas (methane) use (including residential, commercial, and industrial).
Figure 2: 2022 Citywide GHG Emissions by Sector
The main driver of GHG emissions from transportation and mobile sources is fuel combustion from internal combustion engine vehicles, specifically passenger vehicles (69% of all transportation GHG emissions), commercial vehicles (17% of all transportation GHG emissions), and buses (2% of all transportation GHG emissions). Since electricity in the City is carbon- neutral, there are no GHG emissions attributed to passenger, commercial, or bus electric vehicles. Off-road vehicles and equipment make up 8% of all transportation GHG emissions, while Caltrain Commuter Rail and Aviation Fuel make up 3% and 1%, respectively, of all transportation GHG emissions. GHG emissions from lawn and garden equipment specifically— which are predominantly gasoline-powered equipment—made up about 8% of total off-road vehicle and equipment GHG emissions and less than 1% of total citywide GHG emissions.
The second major contributor to GHG emissions includes GHG emissions from stationary combustion of natural gas (methane) and natural gas (methane) leakage. Together, these account for 35.4% of citywide GHG emissions. 47% percent of total natural gas (methane) GHG emissions is attributed to residential natural gas (methane) combustion, 42% is attributed to commercial natural gas (methane) combustion, and 8% percent is attributed to industrial natural gas (methane) combustion. Natural gas (methane) leakage across all customer categories (i.e., residential, commercial, and industrial) accounts for 3% percent of total natural
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gas (methane) GHG emissions.
GHG emissions from the solid waste and wastewater sectors contributed to 2% of citywide GHG emissions. The major driver of GHG emissions from these sectors includes methane emissions as a result of landfilled solid waste, which contributed to 59% of all waste/wastewater GHG emissions. The next major driver of GHG emissions from these two sectors includes fugitive nitrous oxide emissions from wastewater discharge, which contributed to 25% of all waste/wastewater GHG emissions. This was followed by organic waste composting and wastewater sludge composting, which contributed 12% and 2%, respectively, of total waste/wastewater GHG emissions. In line with previous inventory methodology, GHG emissions from organic waste and wastewater sludge composting are a result of compost processing (i.e., transporting and turning). Lastly, 2% of total waste/wastewater GHG emissions is attributed to indirect nitrous oxide emissions resulting from wastewater treatment.
Palo Alto’s 2022 Municipal Greenhouse Gas Emission Inventory In 2022, the City emitted a total of 15,784 metric tons of carbon dioxide equivalent (MT of CO2e) from municipal operations. As shown in Error! Reference source not found., GHG emissions from Palo Alto’s municipal operations are from five main sectors: buildings and other facilities, streetlights and traffic signals, wastewater facilities, city vehicles and equipment, and indirect emissions. Since the methodology has changed significantly for certain sectors since the first Municipal GHG Inventory was conducted in 2005, it is no longer possible to do a true comparison with previous Municipal GHG inventories. However, the methodologies for buildings and other facilities, streetlights and traffic signals, and city vehicles and equipment are similar enough to do rough comparisons. For reference only, in 2005 the City emitted a total of 40,499 MT of CO2e from municipal operations. The full Palo Alto Municipal Greenhouse Gas Inventory for calendar year 2022 can be found in Attachment C.
Table 1: 2022 Palo Alto Municipal GHG Emissions
Sector
2022 GHG
emissions
(MT CO2e)
Percent of
total emissions
Buildings and Other Facilities 3,398 21.5%
Streetlights and Traffic Signals 0 0%
City Vehicles and Equipment Fleet 1,676 10.6%
Wastewater Facilities (Regional Water Quality Control Plant) 5,953 37.7% Indirect Emission Sources 4,758 30.1%
Total 15,784 100%
Note: Percentages and MT CO2e may not add to the total due to rounding A comparison of 2005 and 2022 Palo Alto Municipal GHG emissions is show in Figure 3. As previously discussed, the methodology has changed significantly for certain sectors since the 3 8
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first Municipal GHG Inventory was conducted in 2005, so it is no longer possible to do a true comparison with previous Municipal GHG inventories. However, the methodologies for buildings and other facilities, streetlights and traffic signals, and city vehicles and equipment are similar enough to make rough comparisons.
Figure 3: 2005 vs. 2022 Palo Alto Municipal GHG Emissions Palo Alto’s Progress Towards Carbon Neutrality
Carbon neutrality focuses on balancing the amount of GHGs emitted against the amount of GHGs removed from the atmosphere. The City strives for net zero emissions – reducing GHG emissions as close to zero as possible, then “offsetting” remaining emissions. This is similar to trying to balance a scale. If there are GHG emissions remaining after reduction strategies have been exhausted, “offsets” are used to balance out or get to zero. Offsets are actions, such as carbon sequestration, taken to reduce – or “offset” - the amount of GHGs emitted. Carbon sequestration is the process of capturing and storing atmospheric carbon dioxide. For example, buying into new forest growth to store carbon in trees in one geographic area can offset GHGs emitted in another area.
The City currently purchases carbon offsets to balance emissions from natural gas (methane) use, but the offsets are not included in the citywide GHG inventory. These offsets are included, however, for the purposes of estimating progress towards achieving carbon neutrality. As shown in Figure 3, the inclusion of natural gas (methane) carbon offsets results in 66% emissions reductions.
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Figure 3: 2022 Progress Towards Carbon Neutrality
2024 S/CAP Quarterly Progress
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.
When the S/CAP was updated, the City modeled the outcomes needed to achieve 80 x 30, keeping in mind updated climate science and the global impacts of climate change, as well as the need for increased community awareness. The City’s preliminary analysis achieves 71% reductions below 1990 levels, leaving a 9% gap to be closed through some combination of deeper vehicle electrification, increased reduction in vehicle miles traveled (VMT), multi-family and commercial building electrification, carbon dioxide removal, and funding emissions reductions outside of Palo Alto. Next year, the City will begin developing the 2026 – 2027 S/CAP Workplan to determine the priority implementation areas for the next three years as well as the most cost-effective approaches to achieving the additional emissions reductions needed to close the 9% gap.
There are 23 Council Priority Objectives in the 2024 Council Priority Area Climate Change and The Natural Environment: Protection & Adaptation (CC&NE), the status of which can be found
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in the 2024 Council Priority Objectives Q2 Report13 and the 2024 Council Priority Objectives Q3 Report.14 This report addresses 18 of those Council Priority Objectives, as well as 2 in Council Priority Area Community Health, Safety, Wellness, and Belonging (CHSW&B), as shown in Table
2. Table 2: Council Priority Objectives Addressed in the S/CAP Quarterly Report Number Council Priority Objective
Climate Change and the Natural Environment: Protection & Adaptation (CC&NE) Climate Change Protection
CC&NE 14 Conduct community engagement and data collection and analysis to develop a Safe Streets for All (SS4A) Safety Action Plan for Council approval in 2024 CC&NE 15
Continue community engagement efforts to inform the update and receive Council feedback on the 2025 Bicycle and Pedestrian Transportation Plan (BPTP) characteristics in preparation for next steps including environmental review and adoption in 2025
CC&NE 16 Complete initial pilot area of electric grid modernization CC&NE 18 Continue to improve the Advanced Heat Pump Water Heater Pilot Program in preparation for a full-scale program
CC&NE 19 Adopt a residential whole home electrification pilot program CC&NE 20
Refine existing HVAC pilot program to encourage participation as a next step toward a 2025 Council approved commercial rooftop HVAC electrification advanced pilot program
CC&NE 21 Develop and approve an Electric Vehicle Strategic Plan CC&NE 22 Develop an EV Replacement Program for the City Fleet CC&NE 23 Develop and initiate implementation of a Reliability and Resiliency Strategic Plan CC&NE 24 Develop draft S/CAP funding study with Council input CC&NE 25 Evaluate and report out Palo Alto Link pilot performance and consider continuation and/or expansion of future services
CC&NE 26
Begin community engagement to consider parking policy updates that enhance customer satisfaction, improve program sustainability, and aligns with S/CAP mobility goals
CC&NE 27 Amend local building regulations to establish a "One Margin" energy efficiency standard, to allow installation of natural gas plumbing while imposing more 13 City Council, August 19, 2024; Agenda Item #15; SR #2408-3334, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=a254d349-012e-417e-8404-3559d52c5887 14 City Council, October 28, 2024; Agenda Item #12; SR #2410-3615, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=a66f1ec5-4990-4476-9792-d7cc667885a0 3 8
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stringent energy efficiency and all-electric readiness requirements to all new buildings
CC&NE 28 Initiate the 2026 California Building Standards Code update, including the California Green Building Standards Code
CC&NE 29
Complete community engagement for the Airport’s Long-Range Facilities & Sustainability Plan in accordance with Federal requirements and hold a study session with Council on the draft plan
Climate Change Adaptation: Flood Protection
CC&NE 31 Advocate for the San Francisquito Creek Flood Protection capital project (Reach 2) through Council’s JPA representation and any Council approvals involved CC&NE 32
Complete design and right-of-way acquisition, obtain regulatory permits, finalize project funding needs including potential Council advocacy with State legislators, and approve construction contract for the Newell Road Bridge Replacement project
CC&NE 33 Coordinate with Federal and regional partners on a path forward exploring the development of a Sea Level Rise Adaptation Plan
Community Health, Safety, Wellness, and Belonging (CHSW&B) Invest in Reliable Safety Infrastructure and Systems
CHSW&B 70 Approve updated Local Hazard Mitigation Plan and Community Wildfire Protection Plan
CHSW&B 71 Update Foothills Fire Management Plan
Climate Action
Covering the S/CAP Areas of Climate Action, Energy, Electric Vehicles, and Mobility, this section reports on progress based on the Work Plan Climate Action Priority areas. This includes five priorities with various work items under each priority. This report notes where these work items have been designated as Council priority objectives.
P1. Grid Modernization
P2. Launch Programs
P2.1 Residential Emissions Reduction
P2.2 Non-Residential Emissions Reduction
P2.3 Citywide Mobility
P2.4 Municipal Electrification
P2.5 EV Strategic Plan
P3. Build Awareness and Confidence
P4. Additional Emissions Reductions
P5. Funding Needs and Sources
Separately from the work plan updates, there are two 2024 S/CAP-related Council priority objectives that did not appear in the Work Plan. The first (CC&NE 27) was to adopt local amendments to the State’s Energy Code to replace all-electric new construction requirements 3 8
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which had been placed under an enforcement moratorium in February 2024.15 On June 3, 2024, the City Council adopted an ordinance implementing local amendments implementing a One Margin16 approach to regulating heating and cooling in buildings.17 The City Council reviewed the Second Reading of the Ordinance on June 17, 2024.18 As required by State law, the ordinance was sent to the California Energy Commission for review and approval and was approved September 11, 2024. The ordinance became effective October 4, 2024. The City provided outreach via email newsletters to the general public, architects, contractors, and businesses, including some specific outreach to restaurants. The City also held a Q&A session on September 20, 2024 focused on architects and contractors.
Because the next building code cycle is for 2026-2028, the One Margin code ordinance will only be in effect for approximately one year. The City plans to engage a consultant to assist in evaluating potential regulatory approaches for the City Council to consider with the next cycle of the Building Code regulations that are slated to come to the City Council in 2025 (28 CC&NE).
This is the second S/CAP-related Council priority objective that did not appear in the work plan.
P1. Grid Modernization
Electric grid reliability and resilience will be important to inspiring confidence in electrified homes and vehicles. The focus of Priority 1 is to preserve and enhance reliability, modernize the electric grid and replace aging infrastructure, increase electric grid capacity to accommodate electrification, and explore ways to enhance resiliency.
Grid Modernization (Work Plan Item 1A, Council Priority Objective CC&NE 16): The City is upgrading its electric distribution system to enhance reliability and resiliency, modernize the system, and increase capacity to accommodate widespread electrification. As of September 2024, the first Pilot area is under construction. The City is focused on and working with pole, transformer, and overhead cable suppliers to secure the necessary parts to complete the first part of the project. To date, 61 of 74 (82%) poles have been replaced, and a significant amount of the tree trimming work has been completed. Additionally, 675 of 1,290 (52%) residences in the Pilot Area now have sufficient transformer capacity for electrification, and the Pilot Area is on track to be completed by February 2025.
15 City Council, February 26, 2024; Agenda Item #14; SR #2402-2644, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=8ac11983-10ba-4a79-a823-3693203c22d7 16 A “One Margin” reach code applies additional efficiency requirements to all new buildings, but takes into account energy use at the source, which favors the additional efficiency and lower emissions of all-electric equipment using carbon neutral electricity. It uses standard energy modeling practices to set its requirements rather than novel approaches like local air-quality standards. It does not discriminate between gas and electric appliances like an “Electric-preferred” code.
17 City Council, June 3, 2024; Agenda Item #17; SR #2405-3073, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=5be827a8-943c-4221-a389-e0452ebeaff4 18 City Council, June 17, 2024; Agenda Item #23; SR #2406-3125, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=3fd2a8c6-b814-4ac7-a569-934573550972 3 8
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Reliability and Resiliency Strategic Plan (Work Plan Items 1B, 1C, Council Priority Objective CC&NE 23): In April 2024, the City Council accepted the Reliability and Resiliency Strategic Plan (RRSP).19 A status report on implementation was included in a report to the Utilities Advisory Commission on September 4, 2024.20 Council approved a contract on September 23, 2024 for a consultant to assist with some aspects of implementation, particularly RRSP Strategies 3, 4, and 5 focused on cost-benefit analysis and program development. The City is also working on a partnership with SLAC National Accelerator Laboratory to complete a distribution analysis (RRSP Strategy 4, Action 2).
Utility Rates and Fees (Work Plan Item 1D): The Utilities Department is on track to complete its AMI project by March of 2024, with time of use rates planned to become available on an optional basis in July 2024. The City is pursuing a study to modify its transformer upgrade fees to avoid situations where the resident who triggers a transformer upgrade pays the entire cost of that upgrade. The study is partially completed but has been delayed due to staff turnover.
P2. Launch Programs
The focus of Priority 2 is to launch effective programs for emissions reductions with the highest impact and lowest cost such as single-family electrification, strategic promotion of EVs, commercial rooftop HVAC, and expanded transportation alternatives.
P2.1. Residential Emissions Reduction
The goals for residential emissions reduction embodied in the Work Plan include encouraging EV adoption for all residents, helping multi-family residents access EV charging, and facilitating building electrification of single-family homes and multi-family affordable housing.
Advanced Heat Pump Water Heater Pilot (Work Plan Items 2.1D, 2.1E, Council Priority Objective CC&NE 18): The City launched the Advanced Heat Pump Water Heater (HPWH) Pilot Program in March 2023. The pilot’s goal is 1,000 heat pump water heater installations. It includes both a full service option (where residents can use the City’s prescreened contractor to complete the install at a discount) and a rebate option (where residents can hire their own contractor and receive a rebate), with a new emergency replacement option launched in September 2024. As of September 19, 2024, 447 residents had either completed installations or signed contracts to get a heat pump water heater installed through the City’s programs, with 84 of these projects applying for on-bill financing. With the current pace of new HPWH program signups, the City is on a pace to complete around 250 water heater conversions per year through the Advanced HPWH Pilot Program, equivalent to about 20 percent of the water heaters estimated to be replaced each year. In addition, the City and State Energy Reach Codes encourage new construction and major renovations to be built all-electric, which adds to this total. 19 City Council, April 15, 2024; Agenda Item #4; SR #2401-2496, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=ada33d0c-c1a6-490c-8978-4107b43e6ab5 20 Utilities Advisory Commission, September 4, 2024, Agenda Item 4, Attachment B, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13500 3 8
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The City is working on various efforts to increase signups for the Advanced HPWH Pilot Program. In January, the City did a comprehensive review of the program and made various changes to improve customer experience. The City also expanded outreach to income-qualified residents, and 17 have participated to-date. In April, the City Council approved a request to increase the budget for the HPHW pilot program in order to increase participation with higher rebates.21 In addition, the City launched an Emergency Water Heater Replacement Pilot Program on September 10, 2024; this program is designed to install a heat pump water heater within 48 hours and will serve the needs of customers that cannot be met by the current full service program option. In the FY 2025 budget, Council approved temporary hourly staff to help with outreach, allowing the City to expand program outreach, which has resulted in increased signups.
Whole Home Electrification (Work Plan Items 2.1G, 2.1H, Council Priority Objective CC&NE 19):
The City is working with the Climate Protection Ad Hoc Committee and Working Group to design a comprehensive whole home electrification program by the end of 2024. The program is expected to launch in two phases. In the first phase, tentatively expected by the end of the year, the City will launch a program to help people hire their own contractor to do home electrification projects. The first phase will include a phone number to call for guidance, incentives, contractor lists, financing, and it may also include some level of technical assistance.
In a second phase scheduled for next summer, the City would develop a full service, turnkey program to help people who do not want to hire their own contractor with an option for customers to use a City-prescreened contractor or choose their own contractor. An initial Whole Home Pilot for 100 homes could have various incentives for electrifying at least one major appliance. More details on planned incentives can be found in Attachment F. Spending authority for Phase 1 is included in the Adopted FY 2025 Budget, but additional Council approvals will likely be needed for Phase 2.
Electric Vehicles and Charging (Work Plan Items 2.1A, 2.1C, 2.1J): The City’s promotion of electric vehicle (EV) adoption and expansion of multi-family EV infrastructure continued. In Q2 2024, the City held a total of four EV expos, four EV workshops, and two EV discount campaigns, including the first EV discount campaign to focus on the purchase of used electric vehicles. In Q3 2024, the City offered an additional two EV expos, three EV workshops, and two EV discount campaigns. Significant EV expo events included the Stanford Healthcare EV Showcase in Q2 and the Municipal Services Center Open House in Q3. In Q3, the City also held the first ever mini EV expo onsite at a recently completed multifamily EV charging installation at 345 Sheridan with the goal of engaging tenants of that property on the benefits of EV ownership. CPAU anticipates offering additional Discount Campaigns in Q4 for both e-bikes and pre-owned EVs.
As of September 2024, 15 multi-family properties representing 693 housing units (about 6.3% of all multifamily units in Palo Alto) have installed a total of 223 EV charging ports (including 21 City Council, April 15, 2024; Agenda Item #6; SR #2403-2724, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=d465d2c6-7ab6-4797-928d-a3c4bda992f0 3 8
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make-ready spaces) facilitated through the City's EV programs, with another 12 multi-family projects in progress representing an additional 781 residential units (7.1% of multifamily units) and 241 charging ports. Recently completed multifamily projects (Q3 2024) include a 101-unit condominium property at 101 Alma that installed 97 L2 chargers serving every assigned parking space, two adjacent Stanford faculty condominium properties with 56 units each at 2500 and 2600 Columbia that together installed 20 L2 chargers and 48 EV-ready parking spaces across the properties, and an 83-unit apartment complex at 345 Sheridan that installed 10 L2 chargers.
The City is evaluating designs for an expanded version of the City’s multi-family EV program, and is also considering adding incentives for the purchase of e-bikes and new or used EVs specifically for income-qualified households.
Affordable Housing Electrification (Work Plan Item 2.1I): The City continues to engage with multi-family affordable housing providers in Palo Alto on building electrification and vehicle charging. To-date, the City has collaborated with multiple affordable housing providers on potential EV charging projects and is engaging in conversations and site assessments regarding facility energy upgrade needs and electrification opportunities. There are currently 3 affordable properties with EV charging installations expected to be completed by the end of Q4 2024 or early in Q1 2025, which will result in 52 new EV chargers and 24 EV ready parking spaces serving 281 residential units.
The City’s Residential Energy Assistance Program (REAP) for income-qualified customers continues to reach the City’s most vulnerable population, offering energy and water efficiency improvements at no cost to the customer. In Q2 and Q3 of 2024, 23 customers participated in the REAP program. 13 received a HPWH at no cost, and 1 additional REAP customer received a site assessment for a heat pump water heater and is awaiting installation. 14 received energy and water efficiency upgrades. Some customers received both efficiency upgrades and a HPWH.
P2.2. Non-Residential Emissions Reduction
The goals for non-residential emissions reduction embodied in the Work Plan include encouraging electrification of rooftop packaged HVAC units in commercial buildings, developing custom partnerships with major employers, and developing strategies to promote lower emissions commuting.
Rooftop Packaged HVAC (Work Plan Items 2.2A, 2.2B, Council Priority Objective CC&NE 20): In September, the City launched an update to the rooftop packaged HVAC pilot with a goal of collecting more data to support the design of an advanced pilot program. The City is providing significantly enhanced incentives to a limited number of customers (10), and in exchange these customers must gather additional cost information and other information as they do their projects that they must provide to the City. Businesses who do not wish to gather this information can still access the program at the original incentive level. Outreach is proceeding through various channels to spur participation, and the City has already seen some early interest from several building owners.22
22 Program rebate amounts and guidelines can be found at http://www.cityofpaloalto.org/commercialhvac 3 8
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Major Employer Partnerships (Work Plan Item 2.2C): This work plan item involves developing customer partnerships for emissions reduction with major employers, including assistance for City facility projects and the Palo Alto Unified School District (PAUSD). Staffing changes slowed progress on this item. The City has been in talks with multiple major employers and completed a project to install EV charging in partnership with Stanford Health Care. The City coordinated with PAUSD on its HVAC improvements to various schools and the City is exploring potential City facility electrification projects.
As of September 13, 2024, the Commercial and Industrial Energy Efficiency Program (CIEEP) completed two major energy efficiency projects with projected energy savings of 261,355 kWh.
Ten projects are currently being installed, with a projected savings of 1,155,996 kWh. Eight projects are currently conducting onsite assessments which will generate an “Initial Investigation” report. This reporting will list and quantify potential energy-efficiency findings and measures. In total, the CIEEP program has 2,469,096 kWh actualized and projected savings derived from thirteen projects, with an additional eight projects in the pipeline that will drive further electric savings.
Commuter / Visitor Emissions Reduction (Work Plan Items 2.2D, 2.2E): These work plan items have been lower priority pending completion of the Electric Vehicle Strategic Plan (renamed “E-Mobility Strategic Plan” - see Priority 2.5, below).
P2.3. Citywide Mobility
The goals for citywide mobility embodied in the Work Plan include both transportation-focused and land-use focused actions.
Transportation and Land Use Policies and Programs (Work Plan Item 2.3A): The Safe Routes to School (SRTS) program continues to grow, with the anticipated addition of a youth-focused coordinator for programs at the middle and high schools. This year is the 30th anniversary of the SRTS program, and a celebration is being planned for Bike Month in May of 2025.
The Downtown Housing Plan began in March 2024 with the goal of increasing housing production while ensuring that the downtown area continues to be an attractive local and regional destination. The Plan will help implement programs of the Housing Element by establishing policies and development standards, and plan for the public infrastructure necessary to support increased housing. The project is in the needs assessment phase which includes stakeholder engagement. A Community Advisory Group is being formed and the first community workshop is scheduled for October 10, 2024.
The San Antonio Road Area Plan envisions creating cohesive mixed-use neighborhoods with improved mobility and interconnectivity through an integrated transportation network that reduces greenhouse gas emissions and the use of single-occupancy motor vehicles. The Plan will implement a program in the Housing Element to redevelop a portion of the Bayshore Alma 3 8
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San Antonio Priority Development Area (BASA PDA). An RFP was issued in June 2024 for a consultant to develop the Plan and consultant selection is anticipated near the end of 2024.
Housing Element Adoption and Implementation (Work Plan Items 2.3B, 2.3C): In a joint session on April 15, 2024, the Planning & Transportation Commission and the City Council readopted the sixth cycle 2023-2031 Housing Element. On August 20, 2024, the City accomplished the milestone of receiving Department of Housing and Community Development (HCD) certification of the Housing Element.23
Last Mile Solutions (Work Plan Items 2.3D, 2.3E and Council Priority Objective CC&NE 25):
During the Budget Adoption process, the City Council reduced its General Fund allocation to the Palo Alto Link on-demand transit service pilot program and directed staff to make fare and coverage changes to the service. These will go to Council for adoption in October 2024.
With the hiring of additional staff, the Office of Transportation is developing a staff report that will present issues for consideration to City Council regarding micromobility. The staff report will discuss the current state of the micromobility market and potential paths forward to implement a scooter share or bikeshare program in Palo Alto. The staff report will be presented to City Council in late 2024.
Bicycling Improvements (Work Plan Items 2.3F, 2.3G and Council Priority Objectives CC&NE 14 and CC&NE 15): On April 29, 2024, the City Council received an informational report on collision data analysis as part of the ongoing development of the Safe Streets for All (SS4A) comprehensive roadway safety plan.24 The development of the Palo Alto Safety Action Plan is critical to reaching S/CAP goals because improving safety for vulnerable road users is key to reducing vehicle miles traveled (VMT) and increasing sustainable travel. The City provided information on the Safety Action Plan development at the Palo Alto Earth Day Festival on April 21 and the May Fete Fair on May 4. These events provided an opportunity to engage with community members before preparing the Draft Safety Action Plan. The City is working with transportation planning firm Fehr & Peers to finalize the draft plan for review at standing committees and Council in late 2024, with final plan adoption by City Council in early 2025.
In April 2024, the City hosted a week-long series of events and mobile workshops, including a bike ride and walk downtown, to gain input on the bicycle network and Bicycle and Pedestrian Transportation Plan Update. Following these activities, the City Council held a Study Session on April 29, 2024 to review and provide feedback on the project's draft vision statement and goals, receive an update on recent community engagement, and offer input on the existing conditions technical analysis.25 The feedback gathered will inform the project team's understanding of 23 City of Palo Alto, 6th Cycle 2023-2030 Housing Element, Adopted April 15, 2024, Certified August 20, 2024, https://paloaltohousingelement.com/wp-content/uploads/2024/08/Palo-Alto-Housing-Element.pdf 24 City Council, April 29, 2024; Agenda Item #3; SR #2404-2839, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=79d7c1d2-b1a1-4eb9-acca-039fab914f74 25 City Council, April 29, 2024; Agenda Item #1; SR #2402-2619, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=fcfab491-1dae-4afd-a309-be952790121e 3 8
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community needs. In the summer, the City began to identify and prioritize policy, infrastructure, and programmatic recommendations.
The next project phase, ‘Recommended Bicycle Network, Projects and Programs,’ is underway, and the project team is currently developing the phase's community engagement strategy to include numerous public meetings and extensive public outreach, including meetings with the City’s Pedestrian and Bicycle Advisory Committee (PABAC), local parents, Planning and Transportation Commission (PTC), Parks & Recreation Commission (PRC), Rail Committee, and two neighborhood meetings starting in Fall 2024 and into early 2025. The City Council meeting is also anticipated for early 2025. The team will seek feedback to help refine the draft project recommendations for the Draft Plan Update, including the proposed bicycle network, recommended programs and policies, the project selection criteria, and the updated project Vision, Objectives, and Performance Measures.
Transportation Demand Management (Work Plan Item 2.3H): In May, the City Council received the Palo Alto Transportation Management Association (TMA) 2023 Annual Report, Strategic Plan, and Commute Survey.26 The TMA has been conducting essential outreach to businesses on El Camino Real regarding available transit, bike, and parking programs in advance of the parking changes to the corridor as part of the Caltrans repaving project. Work on the City’s TDM Ordinance is on hold until staff capacity is available.
Parking (Work Plan Items 2.3I, 2.3J, Council Priority Objective CC&NE 26): The City initiated a survey that closed in August to gauge customer satisfaction and support future updates to parking policies. The City is planning to continue community engagement efforts through the fall of 2024. The City will select a parking permit vendor by November 2024 and work with the selected vendor to present options for improvements. Public Works contractors have begun work on installing Automated Parking Guidance Systems in four Downtown garages. The systems, similar to the one installed at the 350 Sherman Avenue garage in the California Avenue district, will display parking availability by level, enabling better efficiency of parking resources. Improvements will seek to limit the time that drivers spend circulating to find parking and will offer opportunities to better align parking policies with TDM efforts and more efficient usage of parking resources.
Traffic Signals (Work Plan Item 2.3K):
The City continually monitors, maintains, and optimizes traffic signal operations, and addresses concerns from the community daily. As funding and staffing allow, the City also works on a variety of capital improvement projects to update and upgrade the current traffic signal network and keep up with changing standards, modernization, and intelligent transportation systems (ITS) technologies. These improvements are a key component to optimizing operations to reduce delays and GHG emissions.
26 City Council, May 20; Agenda Item # 14; SR #2404-2932, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=98ec6492-339a-4dcf-ac76-73a95f11285e 3 8
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In 2024, the City completed upgrades to three intersections along Charleston Road and implementation of a new traffic signal at Charleston Road and Louis/Montrose Road. The City also received funding and began a new capital project to upgrade systems at four intersections along Quarry Road. The City is also working on several projects including at the intersections of Alma Road/Churchill Avenue, Charleston Road/San Antonio Road, and several updates at intersections within school zones. Included with the above and future projects will be implementation of automated traffic signal performance measure systems (ATSPM) to help optimize operations. The City is also currently working on a needed update of its centralized traffic signal management system.
Included with the traffic signal program, the City maintained and upgraded several pedestrian activated beacon crossings and will be installing the newest crossing at University Avenue and East Crescent Drive in late 2024. These pedestrian crossing improvements are essential in encouraging walking and alternative modes of transportation.
P2.4. Municipal Electrification (CC&NE 22)
The City’s municipal electrification efforts include both facility and fleet electrification and are intended to show the community that the City will participate in the same electrification efforts it is encouraging the community to undertake.
Facility Electrification (Work Plan Items 2.4A, 2.4B, 2.4C): In 2023, the City worked on a Facility Electrification Assessment Plan. The City is evaluating the feasibility of electrifying equipment at City Facilities each time aging equipment requires replacement. This was put to the test in December 2023 when the City installed a new heat pump water heater in Palo Alto City Hall that runs on 100% clean electricity. Completion of an Electrification Plan for City Facilities has been delayed while a vacant staff position dedicated to this effort is filled.
Fleet Electrification (Work Plan Items 2.4D, 2.4E and Council Priority Objective CC&NE 22): In Q2 2024, the City received delivery of 4 new Chevy Bolt Electric Vehicles, which replaced internal combustion engine fleet vehicles. There are 32 EVs in the City fleet, or about 15% of the passenger vehicles and light duty trucks and vans. Six new EV chargers dedicated to the City fleet vehicles were placed in service at City Hall in Q3 2024.
As part of the Capital Budget, the City Council approved an all-electric FY 2025 vehicle replacement program, except for Police pursuit vehicles. The City is currently ordering an EV Police pursuit vehicle as a pilot.
Publicly Owned Charger Planning (Work Plan Item 2.4F): There are currently 99 City-owned EV chargers, with a total of 131 charging ports. 10 of those chargers are dedicated to City vehicles, while the rest are primarily for public use. Six additional Fleet chargers were placed in service in Q3 2024.
P2.5. E-Mobility Strategic Plan (Council Priority Objective CC&NE 21) The E-Mobility Strategic Plan is currently in development. The City received feedback on the 3 8
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plan scope and some early design decisions about the plan and analysis at public Ad Hoc Climate Protection Committee Working Group meetings in March and June and in September received feedback on a list of strategies for e-mobility development and its supporting infrastructure to include in the plan. The City anticipates completing a draft of this study before the end of the year and reviewing it with the Ad Hoc Climate Protection Committee.
P3. Build Awareness and Confidence
The focus of Priority 3 is to build community awareness and confidence in electrification through engagement, addressing concerns, and program results.
Building Awareness of the Need for and Benefits of Climate Action (Work Plan Item 3.1A): The City continues to publish a monthly Climate Action Blog and a Quarterly Sustainability Newsletter. In Q2 2024, the City published an April27 and May28 Climate Action Blog; and an April29 and May30 Sustainability Newsletter. In Q3 2024, the City published an August31 Climate Action Blog and a September Newsletter32. The Sustainability Newsletters had a 52% open rate, which is the percentage of readers that open the e-mail you send them. The average open rate for electronic newsletters is 21.5%.
On April 21, 2024, the City hosted the first city-wide Palo Alto Earth Day Festival at Rinconada Library with games, giveaways, and resources to help residents and businesses take environmental action. Booths and tables included information on how to electrify your home, choose sustainable transportation, protect our water supply, live a zero waste lifestyle, and protect pollinators. Other highlights included an induction cooking demo with an Award- Winning Chef on an induction cooktop with back-up battery, an upcycled Art Show, and an electric waste truck.
In Q2 2024, the City held one Earth Day event, one Earth Day Author event, three Climate Protection Working Group meetings, a Bicycle Network Development Workshop, a bicycle ride tour around Palo Alto, two bike to work / wherever energizer stations, four EV Expos, four Electric Vehicle workshops, two EV discount campaigns, two compost workshops, a Palo Alto Wildfire Preparedness Community Webinar, and a city-wide yard sale. The City provided information on the S/CAP and sustainability and climate action programs at the Palo Alto High School Earth Day Event. The City provided information on the S/CAP, sustainability and climate action programs, and HPWH program at the Palo Alto Earth Day Festival, Palo Alto High School 27 Climate Action Blog, April 2024; https://medium.com/paloaltoconnect/every-action-counts-this-earth-month- 5a4baee866fa
28 Climate Action Blog, May 2024; https://medium.com/paloaltoconnect/bike-for-the-planet-a2d22af2552d 29 Sustainability Newsletter, April 2024; https://myemail-api.constantcontact.com/Sustainability-Newsletter-April- 2024.html?soid=1138677832922&aid=dasQTHT5gLw
30 Sustainability Newsletter, May 2024; https://myemail.constantcontact.com/Sustainability-Newsletter-May- 2024.html?soid=1138677832922&aid=4A-lPazzpto
31 Climate Action Blog, August 2024; https://medium.com/paloaltoconnect/climate-action-series-fall-in-love-with- sustainability-bcfd70d80ae6
32 Sustainability Newsletter, September 2024; https://conta.cc/4gD60u9 3 8
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Earth Day Event, Downtown Palo Alto Farmer’s Market, HP Sustainability Fair, SAP Sustainability Fair, and Third Thursday on California Avenue.
In Q3 2024, the City held one Municipal Services Center Open House, one Bay Area Heat Mapping Campaign Author event, one Climate Protection Working Group meeting, one Clean Air at Home event, one Palo Alto City Hall Open House, one composting workshop, two EV discount campaign webinars, one EV workshop, one HVAC System workshop, and one Repair Café.
In Q3 2024, the City helped recruit Palo Alto homeowners for Acterra’s 2024 Electric Home Tour33, which the City is cosponsoring. The Electric Home tour is scheduled for October 19 and will highlight a variety of electrified homes across the Peninsula and South Bay. Attendees will have the opportunity to explore the latest in home electrification, including heat pump water heaters, heat pumps for both heating and cooling, induction cooktops, electric dryers, fireplaces, and electric gardening tools. Homeowners will also share their experiences on selecting appliances, working with contractors, navigating installation, and enjoying cost-saving benefits.
In Q2 2024, the Climate Protection Ad Hoc Committee34 held three Working Group meetings to discuss the Building Sector Study, the Multi-Family EV Program, the Whole Home Electrification Program, the Commercial HVAC Program, the Reliability and Resiliency Strategic Plan, the EV Strategic Plan, the S/CAP Funding Study, and to provide updates on the HPWH Pilot Program. In Q3 2024, the Climate Protection Ad Hoc Committee held one Working Group Meeting to discuss the E-Mobility Strategic Plan and provide a brief update on the Whole Home Electrification Program.
In Q2 2024, the City developed an application and outreach strategy for the newly created Youth Climate Advisory Board. In Q3 2024, the City, a Palo Alto Unified School District representative, and the Palo Alto Student Climate Coalition Co-Founder reviewed applications, conducted interviews, and selected high school students to serve on the inaugural Youth Climate Advisory Board, which convened in September 2024.
Drive Community Actions to Achieve S/CAP Goals (Work Plan Item 3.1B): The City continued to implement the Electrification Marketing Plan and the Heat Pump Water Heater Marketing Plan.
The City provided information on sustainability and climate action programs and initiatives for residents and businesses at the Palo Alto Caltrain Electric Service Launch Party and at the Clean Air at Home in Palo Alto Event.
S/CAP Reporting and Surveys (Work Plan Items 3.1C, 3.1D): The City continues to calculate an annual GHG emissions inventory. As previously discussed, for 2022 the City calculated both a 33 Acterra Electric Home Tour, October 2024; https://acterra.org/electrification/greenhome/electric-home-tour/ 34 Climate Protection Ad Hoc Committee; https://www.cityofpaloalto.org/Departments/City-Clerk/City-Council- Committees/Climate-Protection-Ad-Hoc-Committee
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Citywide and Municipal Inventory. The 2022 GHG Inventories can be found in Attachments A, B, and C of this staff report. This October, the 2022 Citywide GHG Inventory will be reported to the CDP, an international non-profit that helps companies, cities, states, regions, and public authorities disclose their environmental impact.
The 2023 progress in achieving S/CAP Key Performance Indicators can be found in Attachments D and E. The 2023 Palo Alto Community Survey35 did not include a question to directly measure community awareness, however the 2024 Survey does.
Build Confidence in City’s Electric Infrastructure (Work Plan Item 3.1E): The City continues to provide updates and engagement around its electric infrastructure.
P4. Additional Emissions Reductions
The focus of Priority 4 is to identify an additional nine percent in emissions reduction opportunities to achieve 80 x 30, primarily through a focus on studying multi-family and commercial building equipment. The City is proceeding with studies of the multi-family and commercial sectors in conjunction with the S/CAP Funding Study. These studies include review of publicly available data sources and on-site surveys of building equipment at multi-family and commercial buildings. The City’s consultant completed its review of publicly available data and began outreach to identify participants for on-site surveys as of September 2024.
P5. Funding Needs and Sources (Council Priority Objective CC&NE 24) The focus of Priority 5 is to identify, by 2024, funding needed and potential funding sources for full scale implementation of the highest impact emissions reductions. An S/CAP Funding Study is in progress. Completion of the Funding Study depends in part on completion of other complementary studies, including the EV Strategic Plan, Building Sector Study, and the Funding Source Survey. All studies are being completed by the same group of consultants and all are in progress in parallel. Staff believes preliminary draft results of the study can be ready for review by the Council Ad Hoc Climate Protection Committee before the end of the year. This will also incorporate an affordability model developed separately in early 2023.
In parallel, the City is developing a gas model that can be used for financial and infrastructure planning for the gas system as gas use declines. This is expected to be completed in early 2025.
As costs of gas system retirement are developed, the City will incorporate these into the S/CAP Funding Study.
Sustainability
The Sustainability section of the work plan includes the following S/CAP Areas: Water, Climate Adaptation and Sea Level Rise, Natural Environment, and Zero Waste.
Maximize Water Conservation and Efficiency (Work Plan Item 8.A): The near-term focus for 35 City of Palo Alto Community Survey 2023; https://www.cityofpaloalto.org/files/assets/public/v/1/city- manager/communications-office/general/attachment-a-palo-alto-community-survey-2023-report-of-results.pdf 3 8
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water is reducing water consumption while exploring ways to capture and store water and increase the availability and use of recycled water. The WaterSmart customer portal, an online water management tool, launched in November 2022. Through this program, home water reports are sent to around 11,000 single-family customers on a monthly basis. A control group of around 4,000 single-family customers currently do not get the reports. The average open rate of home water report emails is 74%. As of August 6, 2024, 24% of all single-family customers have accessed the portal which provides information about their water consumption and personalized water conservation recommendations. Preliminary results from the efficiency study show that sending home water reports results in water-savings of 2.1%.
The City, in partnership with the Bay Area Water Supply and Conservation Agency (BAWSCA), offers landscape education classes throughout the year to introduce residents to the concepts of water-efficient and sustainable landscaping. In Q2 2024, the City held two water efficiency workshops on turf conversion, native plants, and laundry graywater systems.
Design and build a salt removal facility for the Regional Water Quality Control Plant (Work Plan Item 8.B): The City continues work on the Advanced Water Purification System, which will reduce the salinity of treated water used for irrigation. In May, the City Council reviewed Site and Design application for a proposed local advanced water purification system.36 The design is complete, funding is secured, and staff anticipates Council approving a construction contract in Spring 2025.
Develop a “One Water” Portfolio for Palo Alto (Work Plan Item 8.C): The City is continuing development of a “One Water” Plan for Palo Alto, with input from community stakeholders and the Utilities Advisory Commission. The proposed One Water Plan, which will be a 20-year adaptable roadmap for implementing water supply and conservation portfolio alternatives, includes stormwater, recycled water, on-site reuse, conservation, and groundwater.
Develop a tool for dynamic water planning in the future (Work Plan Item 8.D): The City will develop an excel-based tool for water planning as part of the “One Water” Plan development.
Complete the Sea Level Rise Vulnerability Assessment (Work Plan Item 8.E): The City completed a Sea Level Rise Vulnerability Assessment in the Fall of 2022. The Vulnerability Assessment identified risks and hazards to the Palo Alto Baylands, City infrastructure, and residential and business property. The Assessment considers high tide, 100-year coastal storm event scenarios, and rising shallow groundwater impacts.
Develop a Sea Level Rise Adaptation Plan (Work Plan Item 8.F and Council Priority Objective CC&NE 33): The City will coordinate the development of its Sea Level Rise Adaptation Plan to align with SB272 (Laird): Sea Level Rise Planning and Adaptation requirements and other regional planning efforts.
36 City Council, May 13; Agenda Item #11; SR #2403-2760, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=5f812cd5-ab33-4e51-851a-1b01fde39467 3 8
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Despite longer-term regional planning horizons for sea level rise, the City is working on several near-term goals. These efforts include publishing web-based GIS maps which depict future sea level rise and shallow groundwater changes for use in City project planning, and inclusion of sea level rise in long range planning for the Regional Water Quality Control Plant and Palo Alto Airport.
Begin design process for levee projects (Work Plan Item 8.G): The City continues to advance the Palo Alto Horizontal Levee Pilot Project (PAHLPP). The PAHLPP will be the first horizontal levee to be built in the Bay Area to be both irrigated with treated wastewater and hydrologically connected to San Francisco Bay and will provide much-needed data to inform the design of future horizontal levees around the greater San Francisco Bay Area. Horizontal levees are nature-based sea level rise adaptation options with multiple benefits over traditional flood- control levees such as habitat enhancement, sea level rise adaptation, and additional wastewater treatment.
A United States Army Corps of Engineers (USACE) cost/benefit analysis determined that there is no federal interest in funding Palo Alto shoreline improvements at this time, and that improvements would not be needed until approximately 2060. Valley Water and Shoreline II partners (CalTrans and the cities of Palo Alto and Mountain View) are developing an agency factsheet, and other reference materials for public information, and will reconvene after SB272 (Laird): Sea Level Rise Planning and Adaptation requirements are known to identify possible next steps for coordinating and funding levee improvements.
Identify Protection Strategies from Significant Flood Events (Work Plan Items 8.H, 8.I, 8.J, and Council Priority Objectives CC&NE 31 and 32): The City continues to work with the San Francisquito Creek Joint Powers Authority (SFCJPA) member agencies to coordinate the San Francisquito Creek Flood Protection capital project (Reach 2) with the Newell Road Bridge replacement project.
Local Hazard Mitigation Plan (Council Priority Objective CHSW&B 70): The federal Disaster Mitigation Act of 2000 requires all cities, counties, and special districts to adopt a Local Hazard Mitigation Plan (LHMP) to receive disaster mitigation funding from the Federal Emergency Management Agency (FEMA). The State of California and FEMA approved the Santa Clara County Multi-Jurisdictional Hazard Mitigation Plan (MJHMP), Volume I and the associated Jurisdictional Annexes, Volume II. Staff will seek a City Council resolution to adopt Volume I and The Palo Alto Annex to Volume II.
Foothills Fire Management Plan and Collaboration on Reducing Wildfire Hazards (Work Plan Items 8.K, 8.L, 8.M, 8.N, Council Priority Objective CHSW&B 71): The effort to combine the Palo Alto Foothills Fire Management Plan and Community Wildfire Protection Plan (CWPP) into one document to integrate the wildfire mitigation efforts among the Palo Alto community is underway. The updated plan is scheduled to be completed in Q4 2024. 3 8
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Increase Palo Alto’s Tree Canopy and Ensure No Net Tree Canopy Loss (Work Plan Items 8.O,
8.P): The City will use the iTree inventory to calculate a baseline and citywide public tree inventory update. The current baseline, which needs to be updated, is 5,236,420 lbs CO2 sequestered for 35,570 calculated public trees. The inventory data points used to calculate the current baseline (e.g. tree species) may be outdated (e.g. trees are larger than the data shows, trees were replaced or removed without updating the data). An effort to establish a baseline for carbon storage of Palo Alto’s urban tree canopy is on-track to be completed in 2024.
During the first year of implementation of the Tree Protection Ordinance, the City made note of code sections that caused confusion or did not work as originally intended and provided recommendations to the City Council on proposed changes to Palo Alto Municipal Code. In April, the City Council reviewed the second reading of the ordinance amending Chapter 8.04 and Chapter 8.10 of the Palo Alto Municipal Code.37
Reduce Pesticide Use in Parks and Open Space Preserves (Work Plan Item 8.Q): The City continues to review the use of pesticides in all parks and open space preserves to identify opportunities to further reduce both the amount and the toxicity of pesticides that are used.
Coordinate Implementation of City Natural Environment-Related Plans (Work Plan Item 8.R):
The City is working on an update of the Tree and Landscape Technical Manual. In addition, the Model Water Efficient Landscape Ordinance process is currently under review and should be completed soon.
Support the Green Stormwater Infrastructure (GSI) Plan and incorporate GSI in Municipal Projects (Work Plan Item 8.S): This is an on-going effort to achieve a 10% increase in land area that uses green stormwater infrastructure to treat urban water runoff.
Encourage Commercial Food Waste Prevention and Provide Technical Assistance (Work Plan Items 8.T, 8.W): This is an on-going effort to encourage food waste prevention and require edible food recovery for human consumption from commercial food generators, and develop an outreach tool and technical assistance to the commercial sector.
Promote Residential Food Waste Reduction (Work Plan Item 8.U): The City continues to promote food waste reduction.
Champion Waste Prevention, Reduction, Reusables, and the Sharing Economy (Work Plan Item
8.V): In June, the City Council approved a memorandum of understanding for the ongoing management and operation of a countywide edible food recovery program and sharing of program costs with the cities of Campbell, Cupertino, Gilroy, Los Altos, Milpitas, Monte Sereno, 37 City Council, April 1, 2024; Agenda Item #10; SR #2403-2809, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=132d1d26-0e8c-49c2-8773-ff6e0c9dc1f3 3 8
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Morgan Hill, Mountainview, San Jose, Santa Clara, Sunnyvale, and Saratoga.38 As part of the new Zero Waste Living outreach campaign, the City published nine Zero Waste Minute e-newsletters in Q2 2024.
In Q2 2024, the City held two compost workshops for residents to learn how easy it is to make their own compost. Palo Alto residents receive a free compost bin or worm bin (one per household) by attending a compost workshop. The City also continued the permanent Compost Giveaway Station where residents can pick up compost for their homes and landscape at no charge, and free mulch from tree removal operations is also available at centralized stations throughout the City.
Prioritize Domestic Processing of Recyclable Materials (Work Plan Item 8.X): Domestic processing for mixed paper and mixed rigid plastics began in April 2022. The City continues to review processing efforts.
Eliminate Single-Use Disposable Containers (Work Plan Item 8.Y): The strategy and timeline for expanding the Disposable Foodware Ordinance is on hold until further clarification is received through SB 54 final regulations and changes on what will be considered recyclable and compostable.
Expand the Deconstruction and Construction Materials Management Ordinance (Work Plan Item 8.Z): In May, the City Council received an update on the Deconstruction and Construction Material Management Ordinance, which requires all residential and commercial projects undergoing a whole structure demolition to obtain a deconstruction permit.39 Deconstruction is the careful disassembly of building components to maximize reuse and recycling.
Implement the Reach Code Standard for Low Carbon Construction Materials (Work Plan Item
8.aa): The City Council approved a reach code standard for low carbon construction materials in October 2022. The Reach Code went into effect on January 1, 2023.
FISCAL/RESOURCE IMPACT
Current and future initiatives will be managed and funded across various departments and funds. The Fiscal Year 2025 work items in the 2023-2025 S/CAP Work Plan can proceed with the actions approved in the Fiscal Year 2025 Adopted Budget. Staff expects to submit additional resource requests as part of the annual budget process in subsequent years as the work plan proceeds.
Some items in other work plans are also relevant to the S/CAP Work Plan. The Utilities Strategic 38 City Council, June 18, 2024; Agenda Item #8; SR #2404-2911, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=c58305ed-d1d6-42ce-b37a-eca067b2bb09 39 City Council, May 6, 2024; Agenda Item #18; SR #2312-2377, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=da6cfa4a-5637-44bd-a7bc-92763615dbc1 3 8
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Plan, for example, includes workforce development and advanced metering infrastructure (AMI) work items that are directly relevant to the S/CAP. Some of these may involve future budget requests as well.
STAKEHOLDER ENGAGEMENT
Stakeholder engagement on S/CAP implementation is wide-reaching and coordinated with multiple departments. Efforts include direct engagement, webinars, social media and other digital marketing/outreach, website updates, public signage, Ad Hoc Committee meeting participation, leveraging the city’s communication platforms, and more. Stakeholder engagement efforts were described in the Analysis section Stakeholder engagement efforts were described in the Analysis section, under P3. Build Awareness and Confidence as well as other Work Plan areas.
ENVIRONMENTAL REVIEW
Council’s review of this report is not a project subject to review under the California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment A: 2022 Citywide GHG Inventory
Attachment B: 1990 vs 2022 Citywide GHG Emissions by Sector and Subsector Attachment C: 2022 Municipal GHG Inventory
Attachment D: S/CAP Key Performance Indicators Progress for 2023 Attachment E: S/CAP Key Performance Indicators Progress for 2023 Summary Attachment F: Whole Home Electrification Pilot Program Incentives APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer