City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Public Works
Meeting Date: September 14, 2026
Report #:2605-6337
TITLE
Information Report on Sustainability and Climate Action Plan Implementation, Calendar Year 2026 Quarters 1-2; CEQA Status - Not a Project
RECOMMENDATION
No City Council action is required. This is an update on Sustainability and Climate Action Plan (S/CAP) Implementation Progress in quarters one and two of calendar year 2026. It is provided to give the City Council and public an overview of S/CAP workplan items status since adopted by the City Council in June of 2023.
EXECUTIVE SUMMARY
The City is implementing the S/CAP to help meet its sustainability goals, including reducing greenhouse gas (GHG) emissions 80 percent below 1990 levels and achieving carbon neutrality by 2030. Since the S/CAP was adopted in June 2023, staff has provided implementation updates covering progress from Q3 2023 through Q4 2025. This update covers progress during Q1 and Q2 2026. Highlights of Q1 and Q2 2026 progress include:
Climate Action
140 households signed up for phase two of the advanced home electrification program in only four months since its launch in February 2026.
Concluded the commercial heat pump heating, ventilation, and air conditioning (HVAC) pilot project. By the end of the pilot, 20 customers had applied and 13 had entered the permitting process.
Conducted extensive stakeholder engagement for the San Antonio Road Area Plan, including two Community Advisory Group meetings, one community workshop, and one community survey. These processes informed the land use and mobility alternatives and the core scenario that the City Council reviewed in Q2.
Sustainability
Installed 400 foundation piles and installed connection pipelines for the Local Advanced Water Purification System project at the Regional Water Quality Control Plant.
Completed eucalyptus tree removal in the previously designated project area in Foothills Nature Preserve at minimal cost to the City due to an innovative partnership with West Valley College Park Management students.
Increased focus on the connection between waste reduction and diversion and GHG emissions reduction in solid waste outreach and education campaigns.
BACKGROUND
In April 2016, the City Council adopted the goal of reducing GHG emissions 80 percent below 1990 levels by 2030,1 and in October 2022 the City Council adopted the ambitious goal of achieving carbon neutrality by 2030.2 Staff, with community and City Council input, referred to the 2016 S/CAP Framework and 2018-2020 Sustainability Implementation Plan to create a comprehensive S/CAP and Three-Year S/CAP workplan. In June 2023, the City Council adopted the 2022 Sustainability and Climate Action Plan, certified the Comprehensive Plan Environmental Impact Report Addendum: Update to the Sustainability and Climate Action Plan, and accepted the 2023-2025 S/CAP Workplan.3 The S/CAP is an ambitious plan to reduce the City and community’s GHG emissions, while also guiding how Palo Alto uses land and natural resources in ways that ensure quality of life for future generations. The S/CAP aligns with several goals of the 2030 Comprehensive Plan Implementation Plan. All previous S/CAP Implementation progress reports can be found in the S/CAP Program Reports section of the Sustainability Actions and Accomplishments page of the City website.4 The City Council accepted the 2026-2027 S/CAP Workplan on March 2, 2026.5 In the most recent years, annual City Council Priorities have included a priority relating to sustainability and climate action. For 2026, the City’s sustainability and climate action focus is instead incorporated into the City Council Values. On April 13, 2026, the City Council approved adding “Climate Leadership and Environmental Stewardship. Lead with urgency on climate action and adaptation, sustainability, and environmental protection for current and future generations” to the City Council Values.6,7
1 City Council, April 18, 2016; Agenda Item #10; SR #6754, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=79086&dbid=0&repo=PaloAlto 2 City Council, October 3, 2022; Agenda Item #9; SR #14720, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82036&dbid=0&repo=PaloAlto 3 City Council, June 5, 2023; Agenda Item #14; SR #2303- 1133, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=81648&dbid=0&repo=PaloAlto 4 Sustainability and Climate Action Plan (S/CAP) Progress Reports; https://www.paloalto.gov/City- Hall/Sustainability/Emissions-Reduction-Goals-and-Progress/Sustainability-Actions-and-Accomplishments 5 City Council, March 2, 2026; Agenda Item #9; SR #2602-5985, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86664&dbid=0&repo=PaloAlto 6 City Council, April 13, 2026; Agenda Item #9; SR #2604-6202, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87351&dbid=0&repo=PaloAlto 7 City Council, March 9, 2026; Agenda Item #11; SR #2602-6021, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86679&dbid=0&repo=PaloAlto
ANALYSIS
The City is committed to a sustainable future. The City owns, operates, and maintains a full- service utilities portfolio that provides electric, natural gas, fiber, water, refuse, and wastewater services to residents and businesses in Palo Alto. Palo Alto’s continued leadership in advancing sustainability goals has succeeded mainly because of the continued collaboration of community stakeholders, City departments, and the leadership of the City Council.
The S/CAP Goals and Key Actions are divided into eight areas, four of which are climate-focused and include actions to achieve the City’s 80 x 30 and carbon neutrality by 2030 goals (Climate Action, Energy, Electric Vehicles, and Mobility) and four of which are focused on actions that create a sustainable natural environment and adapting to a warming climate (Water, Climate Adaptation and Sea Level Rise, Natural Environment, and Zero Waste). The Work Plan is similarly divided between climate-focused and sustainability-focused priorities.
Climate Action
Climate action S/CAP areas include Energy, Electric Vehicles (EVs), and Mobility.
Energy and EVs: Single-Family
CA1. Continue Advanced Home Electrification Pilot Program The City launched the second phase of the whole home electrification program. The first phase, launched in January 2025, offered new rebates and a contractor directory through the Rebate Hub, an online home electrification assessment tool, free phone consultation with an electrification expert, and financing through the state’s GoGreen program. As of May 31, 2026, the City had processed rebates for 204 heat pump HVAC projects, 78 heat pump water heaters, 33 electric panel upgrades, and 33 gas meter removal incentives. Additionally, 207 customers have completed the online home electrification assessment.
The City launched phase two in February 2026 and offers an online hub to consider home upgrades with lasting community benefits. This second phase includes fixed prices for full service installations of heat pumps, induction stoves, and other home electrification measures.
So far, over 140 households have signed up for these services, with 75 home assessments completed, 14 contracts signed for home electrification, and 3 project installations completed.
CA2. Develop a Residential Electrification as a Service or Similar Financing Pilot for City Council Approval
The S/CAP Funding Study, presented at a December 13, 2025 workshop of the City Council’s Climate Action and Sustainability Committee (CASC),15 found that more cost-efficient alternatives to up-front incentives were needed to expand programs to serve a greater share of the community, and that financing programs or “electrification as a service” programs inspired by existing “efficiency as a service” programs could serve that role. Efficiency as a service is a service where some or all of the up-front costs of an efficiency measure are funded by a service 15 Climate Action and Sustainability Committee, December 13, 2025; Agenda Item #A; SR #2507-5025, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=84040&dbid=0&repo=PaloAlto provider and repaid out of bill savings.17 The City is currently researching analogous financing programs at other agencies, designing the best way to integrate financing pilots with existing incentive programs, speaking with interested stakeholders, and studying how to administer these programs with the intent of launching a pilot by Q4 2026 or Q1 2027.
CA3. Enhance Data Tracking for Home Electrification
This work item is to enhance existing databases to enable the City to more effectively track program results, perform more targeted outreach, and tailor communications to homeowners based on their building characteristics. The City is working on merging various data sets (utility usage, assessor, program participation, permitting) to support an enhanced data tracking system. These data sets, once merged, can support better tracking of electrification progress, improve program outreach, and support infrastructure planning and other analysis. The data set merger is anticipated to be completed in Q3 2026. This data set merge will also support the Gas Transition Study (see CA20 below). In addition, that study involves using gas usage patterns to estimate the gas equipment inside homes, and once completed, these estimations will be combined with the enhanced data tracking system to provide even more information to enhance climate efforts.
Energy and EVs: Multi-Family
CA4. Launch Enhanced Multifamily EV Charging Infrastructure Program In alignment with the City Council-approved Design Guidelines for the Successor to the Current Multifamily EV Charger Program (EV 2.0),18 staff is conducting research and vetting potential modifications to the EV charging infrastructure program. Program design concepts under consideration include options for multifamily-serving publicly accessible EV charging hubs and curbside charging deployments, considerations for charging-as-a-service (CaaS) on-bill financing pathways (see CA5 below), technical assistance to support load analysis for multifamily properties considering onsite EV charging and building electrification measures, lower-power and load-managed EV charging equipment options, multifamily property owner and tenant education and engagement activities, and income-qualified direct-to-customer incentives. With regard to curbside charging, in Q1 2026 the City was accepted into the Los Angeles Cleantech Incubator (LACI) City Climate Innovation Challenge to support development of a curbside charging pilot project. Staff intends to bring a preliminary plan for program design to CASC for feedback in the second half of 2026.
CA5. Develop a Charging-as-a-Service or Similar Financing Pilot for City Council Approval 17 For a full definition of “efficiency as a service” see https://www.energy.gov/cmei/buildings/efficiency-service — note that “electrification as a service” programs would not necessarily need to include provider ownership as described on this page. “Inclusive utility investments” are another type of program an “electrification as a service” program could draw on for design features while not necessarily incorporating every feature:
https://www.epa.gov/statelocalenergy/inclusive-utility-investments-tariffed-bill-programs 18 City Council, November 17, 2025; Agenda Item #3; SR #2508-5087; https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83873&dbid=0&repo=PaloAlto As noted in CA2, the S/CAP Funding Study found a need for cost-efficient alternatives to up- front incentives to be able to expand programs to serve more community members, such as financing or CaaS. The City is currently researching analogous financing programs at other agencies, designing the best way to integrate financing pilots with existing incentive programs, speaking with interested stakeholders, and studying how to administer these programs with the intent of launching a pilot by Q4 2026.
CA6. Continue Affordable Multifamily Building Electrification Incentive Program The City continues to engage with multi-family affordable housing providers in Palo Alto on building electrification and EV charging. The City is working to design a program to provide incentives for electrification of dedicated affordable multi-family housing central and in-unit gas equipment, with program launch targeted in 2026. As part of this effort, the City is coordinating with the State’s Low-Income Weatherization Program (LIWP) to align program enrollment processes and eligibility requirements and allow projects to leverage program technical assistance and LIWP incentives for energy efficiency and electrification alongside the City’s incentives planned to the greatest extent possible.
Through the City’s EV Charger Rebate program, five affordable housing properties have now installed a total of 61 EV chargers, providing onsite EV charging access to 441 income-qualified apartments.
CA7. Launch Multi-Family Electrification Technical Assistance The City offers technical assistance and incentives to multifamily property owners for electrification of central water heating and space conditioning systems through its commercial program offerings and provides incentives for in-unit electrification of multi-unit dwellings through its home rebate program. The City is working to identify vendors who can provide technical assistance for both building electrification and EV charging infrastructure within multifamily properties. Staff intends to bring forward a proposal for a service offering to CASC alongside EV program 2.0 updates in the second half of 2026 or Q1 2027. In the meantime, staff launched an online electrification resource for renters.
Energy and EVs: Non-Residential
CA8. Launch Advanced Heat Pump HVAC Program
In September 2024, the City launched an update to the commercial heat pump HVAC pilot with the goal of collecting additional data to inform the design of an advanced program. To achieve this goal, the City offered enhanced incentives to a limited group of customers. In return, these customers are required to gather and provide detailed cost and project information to the City including a quote for a gas HVAC replacement system. Businesses that prefer not to share this data can still participate in the program at the original incentive level.
The commercial heat pump HVAC pilot ended on May 7, 2026, with a total of 20 customers applying for the enhanced heat pump HVAC incentives. Of the 20 applicants, 13 have initiated the permitting process, nine have received their permits, and four customers have completed installation and received program rebates; seven of the initial 20 applicants have dropped out of the pilot. Preliminary findings from the pilot indicate that heat pump HVAC project quotes are about 7% higher than gas HVAC project quotes; however, heat pump HVAC costs can escalate significantly for complex projects, with two heat pump HVAC projects that far exceeded the gas HVAC replacement costs. Through the pilot, the City learned about permitting challenges including missing project documentation and in some cases, additional acoustic and structural analyses to comply with the City’s Planning ordinance and safety requirements.
The City re-launched the program in spring 2026 as the Advanced Heat Pump HVAC Program, revising the incentives available for commercial heat pump HVAC projects and will continue to enhance the program to facilitate the electrification of gas-fired HVAC systems in commercial buildings by updating the permit checklist, offering a courtesy contractor list, and providing permitting support to contractors.
CA9. Develop a Commercial Electrification as a Service pilot or Similar Financing Pilot for City Council Approval
As noted in CA2, the S/CAP Funding Study found a need for cost-efficient alternatives to up- front incentives to be able to expand programs to serve more community members, such as financing or “electrification as a service.” The City is currently researching analogous financing programs at other agencies, designing the best way to integrate financing pilots with existing incentive programs, speaking with interested stakeholders, and studying how to administer these programs with the intent of launching a pilot by Q4 2026 or Q1 2027.
CA10. Launch Workplace EV Charging Pilot
This project is on hold and will be initiated following the launch of a Charging as a Service program, using the lessons learned from that program.
CA11. Launch Pilot Program for Electrification of Centralized Water Heaters and Boilers The City is developing a pilot program to support the electrification of central water heaters and boiler systems in commercial buildings and are collaborating with a customer doing a boiler replacement to understand the challenges and costs with the intent of launching a pilot in Q4 2026 or Q1 2027. The pilot program will offer technical assistance and financial incentives to commercial customers interested in replacing existing gas-fired central boilers and/or water heaters with heat pump systems. The pilot is intended to identify market barriers; insights from the pilot will inform future program design to facilitate broader adoption of central heat pump systems for water heating and space heating in order to meet the City's S/CAP goals.
CA12. Establish One or More Partnerships with Large Commercial Facility Owners The City is designing a grant program focused on large commercial facilities to accelerate building electrification and better understand customer barriers and decision-making processes on capital projects. The program will support the identification and development of electrification opportunities at three to five sites while strengthening relationships with key commercial customers.
In June 2026, the City Council approved a professional service agreement with a third-party consultant to provide electrification technical assistance to commercial customers.21 This technical assistance resource will help identify viable project opportunities and support grant recipients throughout the project lifecycle. The City aims to launch the grant program by Q4 2026 or Q1 2027.
Energy and EVs: Regulatory, Analytics, Finances, and Strategy CA13. Develop S/CAP Funding and Financing Strategies for City Council Consideration The focus of Priority 5 is to identify funding needed and potential funding sources for full scale implementation of the highest impact emissions reductions. This S/CAP Funding Study along with its companion studies (EV Charger Needs Assessment, Building Sector Study, and Funding Source Survey) were completed in late 2025. All studies are being completed by the same group of consultants. Final results from the S/CAP Funding Study were presented to the City Council in March 2026.22
The 2021 S/CAP Impact Analysis was able to identify S/CAP implementation actions that could reduce emissions by 71% from 1990 levels, as well as some key efforts for the City to focus on in the short term, acknowledging that more analysis was needed.23 To complete that additional analysis, the City Council initiated an S/CAP Funding Study to complete that analysis in the 2023–2025 Work Plan. The City retained a consultant team to complete an S/CAP Funding Model, a study of the S/CAP goal to reduce emissions by 80% from 1990 levels by 2030, and several complementary studies (an EV Charger Needs Assessment, studies of electrification opportunities in multifamily and non-residential buildings, and a Funding Source Survey).24 These studies identified electrification opportunities to achieve a full 80% reduction in emissions and provided input data and a model to evaluate different electrification rollout scenarios and their financial implications. The studies also surfaced the need for program and financing models other than up-front incentives to reduce the cost to the City of community- wide electrification. This work gave staff the tools, data, and expertise to model actionable long-term strategies for community-wide electrification for City Council consideration. Staff received feedback on six potential strategies to model during a joint meeting of CASC and the Utilities Advisory Commission (UAC) on June 12, 2026.25 Staff intends to model these strategies 21 City Council, June 1, 2026; Agenda Item #8; SR #2605-6354, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887036&dbid=0&repo=PaloAlto 22 City Council, March 2, 2026; Agenda Item #9; SR #2602-5985, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86664&dbid=0&repo=PaloAlto 23 Palo Alto Action Impact Memo, AECOM, June 7, 2021, https://www.paloalto.gov/files/assets/public/v/2/sustaina bility/reports/aecom-palo-alto-action-impact-memo_final_rev-210607.pdf 24 City Council, January 16, 2024; Agenda Item #4; SR #2308-1939, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82633&dbid=0&repo=PaloAlto 25 Climate Action and Sustainability Committee and Utilities Advisory Commission Joint Special Meeting, June 12, 2026; Agenda Item #1; SR #2605-6419,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887114&dbid=0&repo=PaloAlto in Q3 and Q4 2026 with the goal of taking the results back to both bodies in December 2026 or Q1 2027 for development of recommendations for City Council consideration.
CA14. Develop Potential Regulatory Measures to Drive Climate Action CASC reviewed a preliminary list of potential regulatory measures to drive community electrification on April 17, 2026.31 The City is evaluating which measures could have the greatest impact and is doing preliminary research work on various alternatives. Feedback from the June 12, 2026 joint UAC and CASC meeting (as discussed above in CA13) will also inform work on this item, and this work item will be coordinated with CA13, S/CAP Funding and Financing strategies, with the intent that local regulatory measures complement regional regulations and are coordinated and aligned with programs for cost-efficiency.
The City is continuing to work on local amendments to the State Energy Code and is currently waiting on completion of statewide cost-effectiveness studies to establish standards for new construction while continuing to work with the California Energy Commission and California Building Standards Commission to finalize its regulations of remodels and air conditioning. The statewide studies are expected to be completed in Q3 2026.
CA15. Develop Carbon Neutrality Strategies for City Council Consideration The City is researching this topic with the goal of bringing a preliminary discussion of options for achieving carbon neutrality, as well as key challenges and potential solutions to CASC in September 2026.
CA16. Develop Potential Strategies for Cost-Based Pricing of Non-Electric Decarbonization and Inefficient Electrification
Staff’s discussion of regulatory measures with CASC in April (see CA14 above) also included a discussion of options for carbon pricing, if there is community interest. Any consideration of carbon pricing will be integrated with discussions of community-wide electrification strategies (CA13), and feedback from the June 12, 2026 joint UAC and CASC meeting will also inform work on this item. The City is also considering capacity fees related to grid impacts of inefficient electrification as staff time permits.
CA17. Reduce Permitting, Interconnection, and Other Barriers to Adoption of Vehicle and Building Electrification and Flexible Energy Technologies for Reliability and Resiliency The City is using programs, most currently learnings from the packaged HVAC pilot, to identify permitting and interconnection barriers and identify solutions. The City is implementing rebates related to permit fees and is also scoping a barrier reduction effort related to distributed energy resources as directed by the City Council on March 2, 2026 when it adopted the Evaluation of Local Energy Resources to Lower Costs and Improve Reliability and Resiliency 31 Sustainability Committee, April 17, 2026; Agenda Item #1; SR #2602-5956, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87935&dbid=0&repo=PaloAlto report.33 Both Utilities Engineering and Planning and Development Services are working on streamlining efforts related to these resources and to electrification, and this effort will summarize these efforts and identify any additional opportunities.
CA18. Develop Public Charging Siting and Business Models The City is approaching this work item by running pilot programs rather than performing analysis. Pilot programs include:
A collaboration with the LACI 2026 City Climate Innovation Challenge cohort to pilot on- street charging in Palo Alto and other cities to develop best practices and reduce barriers to this approach to expanding EV charger access for multi-family buildings. The program includes partnerships with companies working in this space, technical assistance and partnership, and potentially funding.
Development of mobility hubs, starting with public agency parking lots via development of a Public Agency EV Charging Hub grant program and partnership with PAUSD on obtaining a grant to facilitate publicly available charging at school sites near multi-family buildings.
CASC reviewed the program design guidelines in June. The guidelines will be brought to the City Council for approval in August.
The City is focused on equitable deployment of these projects, ensuring EV charging is built near affordable housing wherever possible.
Energy and Mobility: Infrastructure
CA19. Continue Grid Modernization
Staff presented an update on grid modernization to UAC at its January 7, 2026 meeting and to CASC at its March 6, 2026 meeting.34,35 In the update, staff discussed the current approach to grid modernization for scope and cost-efficiency. The approach involves focusing on areas of 4kV to eliminate legacy infrastructure, improve reliability, and expand capacity to prepare for electrification (which involves about 2900 homes). In other areas of the residential sector, staff is upgrading the distribution as customers initiate work related to electrification (building and transportation electrification) while encouraging efficient electrification (e.g. shared EV charging) to minimize expected peak demands of electrification. This approach will reduce the overall cost of the grid-modernization effort and construct capacity expansions at the same time residential loads appear. The grid modernization project will also have an initial focus on upgrading substations and the sub-transmission system to improve reliability and expand 33 City Council, March 2, 2026; Agenda Item #10, SR #2508-5090, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86665&dbid=0&repo=PaloAlto 34 Utilities Advisory Commission, January 7, 2026; Agenda Item #3; SR #2512-5638, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=85181&dbid=0&repo=PaloAlto 35 Climate Action and Sustainability Committee, March 6, 2026; Agenda Item #2; SR #2507-5030, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86701&dbid=0&repo=PaloAlto capacity to accommodate increased loads as needed. Utilities staff developed a detailed CIP, with specific projects and timelines, that was approved by the City Council on June 15, 2026.39 CA20. Develop Gas Transition Management Strategies
In the fall of 2025 staff presented preliminary results from the Gas Transition Study to UAC and CASC while noting that the results were based on incomplete data sets.40, 41 The preliminary findings showed that if electrification proceeds mostly randomly, as is likely without targeted programs or interventions, few gas lines become candidates for abandonment until a large majority of the homes have electrified. As noted above in CA3, staff is working on improving the model’s data sources by merging various data sets to support an enhanced data tracking system. These data sets, once merged, can support the Gas Transition Study among other activities. The data set merger and updating of a physical baseline gas system model is anticipated to be complete in Q3 2026. Once completed, staff will begin running simulations of the updated physical gas model to identify any insights on where gas infrastructure can be eliminated and assess any customer class and rate impacts. Staff intends to return to UAC and CASC in early 2027 with results from the updated model.
Mobility
CA21. Achieve Benchmarks for Bicycle and Pedestrian Capital Improvement Projects The City will begin procurement for a transportation planning firm to finalize the South Palo Alto Bikeways Demonstration Project street design when a project manager is recruited to fill a recent vacancy.
The South Palo Alto Bike/Ped Connectivity Project seeks to create a bicycle and pedestrian pathway across the Caltrain corridor above or below the tracks that will improve bicycle and pedestrian connectivity in south Palo Alto (south of Oregon Expressway) in support of the mobility and sustainability goals of the City. On December 1, 2025, the City Council reviewed eight shortlisted alternatives for the South Palo Alto Bike/Ped Connectivity Project and, based on recommendations from the Rail Committee and Staff, selected Alternative A (a crossing at El Dorado Avenue) as the preferred alternative, eliminating all other options from further consideration.42 Two variants of Alternative A were advanced: A1 (signalized crossing of Alma Street at El Dorado Avenue) and A2 (tunnel under both Alma Street and the Caltrain tracks).
The City Council passed a motion to focus evaluations on Alternatives A1 and A2, with a preference for A2. Additional community engagement activities are planned for mid-2026 to 39 City Council, June 15, 206; Agenda Item C; SR #2601-5837, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887172&dbid=0&repo=PaloAlto 40 Utilities Advisory Commission, October 1, 2025; Agenda Item #2; SR #2502-4137, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=84155&dbid=0&repo=PaloAlto 41 Climate Action and Sustainability Committee, October 17, 2025; Agenda Item #2; SR #2507-5022, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83904&dbid=0&repo=PaloAlto 42 City Council, December 1, 2025; Agenda Item #18; SR #2507-4950, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=84110&dbid=0&repo=PaloAlto support the decision-making process and incorporate public feedback on the alternatives in the vicinity of El Dorado Avenue.
CA22. Implement Micromobility Feasibility Study Recommendations Staff paused work on the Shared Micromobility Feasibility Study because of a recent vacancy.
The study is now scheduled to be completed in late 2026 pending recruitment of a new project manager, after which staff will report on the study’s findings. The study will evaluate local demand for micromobility and identify if a micromobility program would be financially sustainable. The City Council previously approved a one-year micromobility pilot program, but the program was not implemented at the time due to the COVID-19 pandemic and staffing limitations.47
CA23. Continue Traffic Signal Operations and Multimodal Improvements 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 program projects to update and upgrade the current traffic signal network and keep up with changing standards, modernization, and intelligent transportation systems technologies. These improvements are a key component to optimizing operations to reduce delays and GHG emissions from idling. In Q1 and Q2 of 2026, the City also started the procurement process for updating the network communication switches for the city-wide traffic signal network, and is in the project development phase for traffic signal upgrades and operational optimization for the Embarcadero Road corridor. The City began the planning phase of a Transit Signal Priority project with SamTrans as well as the optimization analysis for the Quarry Road corridor.
CA24. Continue Implementing the Housing Element / Land Use Planning and Policy The City made considerable progress in implementing the program objectives in the 2023-2031 Housing Element.48 Implementation activities in Q1 and Q2 2026 included progress on affordable housing, housing density, the Downtown Housing Plan, and the San Antonio Road Area Plans. This progress is aligned with S/CAP goals to reduce vehicle miles traveled and to adapt to the impacts of climate change.
In February 2026, Alta Housing formally submitted their development application for their proposed 6-story, 72-unit affordable housing project at the City’s Lot T surface parking lot (450 Lytton Avenue). The Architectural Review Board reviewed the Streamlined Housing 47 City Council, March 2, 2020; Agenda Item #5; SR #11075, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=80712&dbid=0&repo=PaloAlto 48 City of Palo Alto 2023-2031 Housing Element, 2024; https://www.paloalto.gov/files/assets/public/v/1/planning- amp-development-services/housing-element/housing-element_2023_2031/palo-alto-housing-element.pdf Development Review application on May 7, 2026,51 and the project is anticipated to be heard by City Council for a decision in October 2026.
The City continued implementation progress of Housing Element Program 6.5B (Alternative Housing Program) by presenting and receiving feedback from the Planning & Transportation Commission on April 8, 2026.52 City Council consideration of a draft ordinance is anticipated to occur by Q4 2026, which would include recommended zoning incentives and updated development standards to support micro-units and senior housing units.
The Downtown Housing Plan, if adopted, would implement Housing Element programs by establishing policies, development standards, and a plan for the public infrastructure necessary to support increased housing in the area. The Plan would advance the objectives of the S/CAP by analyzing components such as climate change and resilience, as well as land use, housing, and transportation by focusing on housing production near the downtown Palo Alto Caltrain station. After presenting the Economic Feasibility and Implementation Analysis, preliminary policy recommendations, and the relationship to Senate Bill (SB) 79 housing planning complexities, City Council placed the Downtown Housing Plan effort on hold pending City Council guidance and direction on SB 79. Subsequently, in Q1 and Q2 2026, an SB 79 Implementation / Downtown Housing Plan Ad Hoc Committee met with staff to discuss the City’s potential actions related to SB 79. On June 1, 2026,53 the City Council adopted two temporary ordinances, one to set residential densities near Cal Train stations and the other to exempt historic properties from SB 79 standards. Additionally, the City Council directed staff to resume and complete work on the Downtown Housing Plan.
The San Antonio Road Area Plan is a City-led initiative to develop an integrated land use and transportation vision for the 275.3-acre corridor along San Antonio Road. Goals include increasing housing production, improving multimodal mobility, creating new outdoor spaces, and supporting commercial vitality. The City conducted extensive stakeholder engagement in Q1 2026, including two Community Advisory Group meetings, one community workshop, and one survey.54 Following these efforts, the City Council held an April 6, 2026,55 study session to review draft land use and mobility alternatives. On June 8, 2026,56 City Council reviewed a core scenario—including building heights, residential and commercial floor area, outdoor space, ground-floor retail, and near-term mobility improvements—that will then be analyzed in a detailed transportation analysis. This in turn will allow the City Council and the community to 51 Architectural Review Board, May 7, 2026; Agenda Item #2; SR 2601-5872, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87998&dbid=0&repo=PaloAlto&cr=1 52 Planning & Transportation Commission, April 8, 2026; Agenda Item # 2; SR 2602-5972, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87210&dbid=0&repo=PaloAlto 53 City Council, June 1, 2026; Agenda Item # 17; SR #2605-6397, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887027&dbid=0&repo=PaloAlto 54 San Antonio Road Area Plan Project Webpage, https://www.paloalto.gov/Departments/Planning-Development- Services/Housing-Policies-Projects/San-Antonio-Road-Area-Plan 55 City Council, April 6, 2026; Agenda Item # 3; SR #2603-6127; https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87034&dbid=0&repo=PaloAlto 56 City Council, June 8, 2026; Agenda Item # 15; SR #2603-6116, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887027&dbid=0&repo=PaloAlto understand traffic implications for the Plan before committing to a land use direction. Staff will return to City Council in Q4 2026 with a recommended land use and transportation plan framework, supported by this analysis, for a decision on the preferred alternative to carry into the administrative draft of the Area Plan and environmental review.
CA25. Update City’s Traffic Calming Policy and Process
In Q1 and Q2 of 2026, the City secured Measure B Local Streets and Roads funding to undertake work on Bryant Street Improvements project, which is serving as a test case for new approaches to traffic calming. Concepts have been developed and community engagement will be conducted in September.
In Q2 of 2026, the City also participated in National Association of City Transportation Officials training related to traffic calming, quick build, and streamlined in-house delivery transportation improvements.
Energy, EVs, and Mobility: Municipal Assets and Operations CA26. Develop and Begin Implementing a City Facility Electrification Plan The City previously identified five facilities for the Facility Electrification Pilot Program, which is intended to evaluate electrification approaches, identify infrastructure constraints, and inform long-term implementation strategies for future building conversions. The pilot facilities include the Golf Course Pro Shop/Restaurant, Ventura Community Center, Art Center, Downtown Library, and College Terrace Library, and were presented to CASC.19 The City procured professional design services in May to thoroughly assess existing building systems, infrastructure capacity, and facility upgrades needed to support replacement of gas- burning equipment with electric alternatives. Council approval of the contract is scheduled for August.
CA27. Electrify City Vehicle Fleet when Feasible
In Q1, the City replaced four internal combustion engine vehicles with four EVs, consisting of one Ford E-Transit, two Chevrolet Bolt EVs, and one Ford F-150 Lightning. In Q2, six additional internal combustion engine vehicles were replaced with three Chevrolet Equinox EVs, one Isuzu NRR EV, one Chevrolet Silverado EV, and one Ford E-Transit. As a result, the City fleet now includes 51 active EVs, representing approximately 19% of passenger vehicles and light-duty trucks and vans.
The City added seven electric bicycles (e-bikes) to its fleet in 2025 to further reduce emissions from City operations. Uptake of the fleet e-bike pilot program has been slow, but it is gaining momentum. As of June 2026, staff have traveled more than 78 miles on the e-bikes. 27 staff in 8 different departments have taken the required online training.
The City’s solid waste hauler, GreenWaste of Palo Alto, is also electrifying the fleet of waste vehicles serving Palo Alto. GreenWaste has added two fully electric automated side loader collection vehicles for residential solid waste collection, which increases their fleet of EVs serving Palo Alto to a total of seven. New electric chargers for these heavy-duty vehicles were also added to the yard that GreenWaste uses on the former Los Altos Treatment Plant location on San Antonio Road in Palo Alto.
CA28. Explore the Electric Capacity Needs of the Palo Alto Airport for Electric Aviation The City is working with electric aircraft manufacturers to identify potential requirements for both fast charging and trickle charging infrastructure at the airport. At this time, there is no unified aviation standard for electric aircraft charging, and different manufacturers may require different charging systems and infrastructure making it difficult to determine the ultimate electrical needs at the airport.
As part of the Airport’s long-range planning efforts, the City will evaluate the existing electrical capacity available at the airport and identify potential future infrastructure and demand needs associated with electric aviation.
Sustainability
Sustainability S/CAP areas include Water, Adaptation & Sea Level Rise, Natural Environment, and Zero Waste.
Water
S1. Implement Water Efficiency and Conservation Measures The City has offered an online water management tool, WaterSmart, to customers since 2022.
The tool provides personalized water conservation recommendations, including monthly home water reports, leak alerts, and high-usage notifications supported by Advanced Metering Infrastructure data, helping customers make informed decisions about water use in support of the City’s conservation goals. As of June 2026, 38% of all single-family customers have accessed the portal – an increase from 36% as of December 2025. The average open rate of home water report emails is 64%. Home water reports result in residential water savings of approximately
26.2 MG (3% savings) annually.
S2. Improve Recycled Water Quality through Salt Removal Construction continued in Q1 and Q2 of 2026 on the Local Advanced Water Purification System Project. Key construction activities during this time include installation of 400 foundation piles and installation of connection pipelines to the larger wastewater treatment plant. Once construction is complete (anticipated in 2028), the Project will improve recycled water quality by blending reverse osmosis permeate with current recycled water produced to ultimately reduce the salt content and encourage expanded use of recycled water for non-potable uses such as irrigation.
S3. Identify and Implement Water Distribution System Adaptation Measures There are no updates to this item for Q1-2 2026.
Adaptation: Sea Level Rise
S4. Finalize Partnership Agreement with Santa Clara County on SB272 Regional Shoreline Adaptation Plan Requirements to Develop a Regional Vulnerability Assessment and Adaptation Plan
The City submitted a letter of commitment to participate in this effort in summer 2025. The City will work with Santa Clara County and other cities to develop a Regional Shoreline Adaptation Plan (RSAP) as required by SB27263, which initiated new statewide requirements for local sea level rise adaptation planning. On September 30, 2025, Santa Clara County Office of Sustainability was awarded a $2.6 million Ocean Protection Council grant to develop a multi- jurisdictional “subregional” sea level rise vulnerability assessment and adaptation plan for RSAP project partners which include Palo Alto, Mountain View, Sunnyvale, San Jose, Milpitas and Santa Clara. The grant partnership will complement Palo Alto’s sea level rise planning work to date, provide a project funding strategy and cost of inaction, CEQA determination, a list of potential projects, and ensure that social equity considerations have been properly vetted. The County is currently finalizing the grant agreement with the Ocean Protection Council and aims to begin work before the end of 2026.
S5. Update the City's Sea Level Rise Adaptation Policy to Include Sea Level Rise Planning Decision-Making Points in the City
Revisions to the City’s Sea Level Rise Adaptation Policy are scheduled for 2027. Timing for this task may need to be adjusted if work from the RSAP development recommends policy alignment between Santa Clara County cities that is still under development.
S6. Complete Construction and Begin Monitoring the Palo Alto Horizontal Levee Pilot Project Construction continued in Q1 and Q2 of 2026 on the Palo Alto Horizontal Levee Pilot Project (PAHLPP). Key construction activities during this time included pipeline and connection installations from the wastewater treatment plant to the levee site. Horizontal levees are nature-based sea level rise adaptations with multiple benefits over traditional flood-control levees such as habitat enhancement, sea level rise adaptation, and additional wastewater treatment. 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. The project will provide much-needed data to inform the design of future horizontal levees around the greater San Francisco Bay Area. An event celebrating the completion of the project will take place in September.
S7. Continue Partnership with Valley Water on Sea Level Rise / Shoreline Levee Improvement Efforts
A United States Army Corps of Engineers (USACE) study determined that levee improvements are not needed until 2060 to protect the City from future sea level rise conditions, and planning for those improvements should begin by 2040. The City continues to work with Valley Water to 63 San Francisco Bay Conservation and Development Commission; https://www.bcdc.ca.gov/regional-shoreline- adaptation-plan-bpa-1-24/
monitor opportunities to re-open the USACE study to align or start in advance of this time horizon.
Adaptation: Wildfire Protection
S8. Implement the Foothills Fire Management Plan
The City Council accepted the final 2025 Community Wildfire Protection Plan on November 3, 2025. The Foothills Fire Management Plan is now encompassed within the Community Wildfire Protection Plan. Also on November 3, the City Council received the Wildfire Preparedness Audit with recommendations across many departments that the City could enact to make improvements to this program.65
In Fiscal Year 2026, the City successfully extended its contractual relationship with the Santa Clara County Firesafe Council to enable them to perform directed fire management tasks prescribed by the Foothills Fire Management Plan. The City has initiated the workplan for the 2026 fire season which includes the fuels reduction of the primary evacuation routes of Page Mill, Arastradero, and Los Trancos Roads; as well as the Open Space Ranger-led fuel reduction tasks inside of the Foothills and Arastradero Nature Preserves. Wildfire Urban Interface residential inspections are also in progress by the Palo Alto Fire Department, which is done annually to work with the community to reduce ignition risks to individual properties.
Additionally, in March 2026 the City partnered with the Los Altos Hills Community Fire Department to complete vegetation management work of the Page Mill Road I-280 Interchange.
Over the course of the 2026 fiscal year, the Open Space Ranger staff at Foothills Nature Preserve was able to remove the final grove of eucalyptus trees in the initial project area identified for removal of these hazardous trees. Foothills Nature Preserve staff partnered with West Valley College Park Management program to allow students practical work experience in reducing trees and segmenting them for removal. This was done at almost no cost to the City and demonstrates a novel solution to a much-needed effort.
The Utilities Department’s Foothills Undergrounding Project completed the last 10,000 feet of undergrounding of high-voltage power lines with remaining work including the removal of now de-energized overhead conductors, wood utility poles, and undergrounding of any remaining low-voltage electric service wires. Once fully completed, this project will have placed underground just over 9 miles of electric overhead distribution lines and fiber optic cable. The final tasks of removing the old poles, wires, and undergrounding individual electric services is expected to continue through the end of calendar year 2026.
Natural Environment: Biodiversity
S9. Increase Tree Canopy in South Palo Alto
65 City Council, November 3, 2025; Agenda Item #2; SR #2510-5338, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83775&dbid=0&repo=PaloAlto The City will publish the new Tree and Landscape Technical Manual by the end of calendar year 202667. The primary focus is on preserving and growing urban canopy during development.
Included in the new manual are an updated Model Water Efficient Landscape Ordinance process, revised tree replacement calculations that account for canopy size of the replacement tree(s) and updated in-lieu fee for when planting trees on site is not feasible.
S10. Reduce Pesticide Use in Parks and Open Space
The City continues to review the use of pesticides in parks and open space preserves to identify opportunities to reduce both the amount and the toxicity of pesticides that are used. The City stays current on emerging contaminants and alternative management approaches through on- going participation in countywide and regional working groups. These practices are also being integrated into the new Tree and Landscape Technical Manual, which will be published by the end of calendar year 2026 and emphasizes monitoring and management techniques that minimize the need for chemical controls in tree care.
Natural Environment: Green Stormwater Infrastructure
S11. Construct a Green Stormwater Infrastructure Project at a City of Palo Alto Park The City Council approved the contract for design and community outreach for constructing a green stormwater infrastructure (GSI) project at Juana Briones Park.68 The 10% design of the project was completed in June. Public outreach is planned for later in 2026. Completion of the design is expected in summer 2027.
S12. Increase Green Stormwater Infrastructure on City of Palo Alto Property and/or Right-of- Way
The aforementioned GSI project at Juana Briones Park is expected to treat stormwater runoff from a 14.8 acres portion of the surrounding neighborhood, 6.6 acres of which is impervious surface.
S13. Quantify Land Area that Uses Green Stormwater Infrastructure to Treat Urban Water Runoff
There are no updates on this workplan item for Q1-2 2026.
Zero Waste
S14. Champion Waste Prevention, Reduction, Reusables, and the Sharing Economy The City continued outreach and education on waste prevention, reduction, reusables as well as routine messages for increasing recycling and composting while reducing the amount of waste that is landfilled. The focus on climate action and the connection to reduction in GHGs is now increased in Zero Waste outreach and education. This focus is integrated across multiple 67 Palo Alto Municipal Code Title 8; https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0- 65799
68 City Council, March 2, 2026; Agenda Item #7; SR #2510-5363, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86685&page=64&dbid=0&repo=PaloAlto&searchid =ec9d156c-d38d-4eed-8c20-ec23c874df14
outreach channels including utility bill inserts and announcements, advertisements in local newspapers, multiple newsletters, and content distributed through the various City social media platforms and at special events in the community. Additionally, the City has added specific Zero Waste outreach messages and focused campaigns to the digital monitors at the City’s libraries and continuously provides technical assistance to residents and businesses.
Also, in Q1-2 2026, the City implemented a new outreach and education campaign that encourages and normalizes the behavior of composting soiled paper cups. The focused headline was “Palo Altans compost their coffee cups”.
The City continued to publish weekly Zero Waste Minute e-newsletters providing the community with reduce, reuse, repair, recycling and composting tips as well as highlighting successes to frequently asked waste related questions and services. As of June 2026, the average open rate for the Zero Waste Minute weekly e-newsletter is 54%.
S15. Eliminate Single-Use Disposable Containers and Reduce Disposable Foodware As part of the new 2026-2026 S/CAP Work Plan, the City is assessing compliance with existing foodware ordinance requirements, identifying key challenges and barriers to reducing additional single-use disposables and requiring reusable alternatives. The action will be to develop a new comprehensive plan to effectively expand and strengthen the foodware ordinance.
In Q1-2 2026, the City conducted outreach and education on the State’s SB 1053 ban on single use plastic carryout bags and pre-checkout bags, which went into effect January 1, 2026. This new law applies to grocery stores, retail stores with pharmacy, convenience stores, food marts, and liquor stores. These retailers may only offer recycled paper bags at the register and charge customers a minimum of 10 cents per bag. These requirements will help reduce single-use plastic consumption and waste going into the landfill.
S16. Promote Food Waste Reduction
The City continued collaboration with Santa Clara County, other jurisdictions, and Joint Venture Silicon Valley to provide outreach to food service establishments on requirements for food waste reduction, donation of edible food, and conducting inspections to assess compliance with requirements of SB 1383, the State’s Short-Lived Climate Pollutant Legislation. The City conducted outreach to the community on the requirements of SB 1383 and conducted route reviews to visually assess waste containers at residential and commercial locations.
Communications
The 2026-2027 S/CAP Workplan created a separate section for communications because of the importance of communications to all areas of the S/CAP. This section includes three items:
C1. Build Awareness about Sustainability and Climate Action and City Programs Available to the Community
C2. Drive Community Actions to Achieve S/CAP Goals
C3. S/CAP Data Collection and Annual Reporting
Build Awareness & Drive Community Action
In 2026, enhanced communications and marketing efforts are planned connecting residents to resources, building awareness of the City's sustainability and climate action goals and programs, and celebrating key milestones. Key messages will continue to focus on reducing emissions through home upgrades, switching to electric to support cleaner air and community health benefits, ease of City's programs saving time and money, and the importance of taking local action to advance community goals. A key focus is increasing digital communication engagement through a new weekly social media series designed to build awareness, “Small Habits, Big Impact,” finalizing a campaign focused on the City’s progress towards reducing emissions by 80%, launching a community toolkit with messages to share with neighbors, and new messaging to engage and build awareness of ways to take action. New website resources launched in Q1 as enhancements to programs were implemented to support increased community engagement with new program elements.
In addition to existing advertising through Google, Facebook, and Instagram, the City began using Nextdoor ads to reach residents in a variety of ways. This is in addition to sending mailers to residents, digital newsletters and email updates, and distributing utility bill inserts and flyers to City facilities and events.
The City incorporated messaging into its awareness outreach about cleaner indoor air quality, community health, and other health aspects focusing on the benefits of switching to electric appliances over gas. Additional work is underway and to be completed this fall to expand on City online resources sharing health risks associated with gas use.
Staff hosted the Earth Day Festival with over 400 engaged attendees, and other engagement such as continuing to partner with Silicon Valley 350 and home electrification outreach, Home Electrification Webinar and launching a library induction cooktop loaner kit.
S/CAP Data Collection & Annual Reporting
Staff is reporting regular updates to CASC on progress building awareness, driving community action, and data and analytics. At the April meeting, staff provided an annual update on work planned for 2026, a look back at 2025 analytics, which is being used as the benchmark work to date.71
FISCAL/RESOURCE IMPACT
Current and future initiatives will be managed and funded across various departments and funds. No new funding is needed at this time, and the implementation of this 2026-2027 S/CAP Work Plan is subject to the standard budget appropriation process. Some items in other work plans are also relevant to the S/CAP Work Plan. The Utilities Strategic Plan, for example, 71 Climate Action and Sustainability Committee, April 17, 2026; Agenda Item #2; SR #2604-6205, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87361&dbid=0&repo=PaloAlto includes workforce development and advanced metering infrastructure work items that are directly relevant to S/CAP. Some of these may involve future budget requests as well.
STAKEHOLDER ENGAGEMENT
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, CASC meeting participation, leveraging the City’s communication platforms, and more. Stakeholder engagement efforts were described in the Analysis section under Communications (Workplan items C1-C3).
ENVIRONMENTAL REVIEW
This report is for informational purposes only with no action required by the City Council and therefore it is not a project subject to review under the California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment A: 2026-2027 Work Plan Status Dashboard
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer