RESOLUTION#XX-XXRESOLUTIONOFTHECOUNCILOFTHECITYOFRICHMONDINSUPPORTOFTRANSITIONFROMPG&E’SINVESTOR-OWNEDUTILITYMONOPOLYTOGOLDENSTATEENERGY, ANOT-FOR-PROFITUTILITYFORCOMMUNITYBENEFIT_________________________________________________________________________ WHEREAS,thefailuresofthecurrentenergysystem,ofPacificGasandElectricCompany(PG&E),andtheofCalifornia’scurrentregulatoryinfrastructure,havecausedgrievousharmtoCaliforniaresidentsanditsenvironmentbycausingcatastrophicwildfires,smoke,shutoffs,environmentalinjustice,climatedisruptionandescalatingrates;and WHEREAS,thestatecreatedthenot-for-profitpublicbenefitcorporation,GoldenStateEnergy,designatedasareceiverforPG&E’sassetsthroughpassingSB350 1 in2020forthepurposeofowning,controlling,operating,ormanagingelectricalandgasservicesforitsratepayers,forthebenefitofallCalifornians;and WHEREAS,theCityofRichmondunderstandstheprinciplethatenergyisahumanrightandshouldnotbesoldtogenerateprofitforanyoneandiscommittedtoaccesstosafe,clean,affordableandreliableenergyforallofourresidents;and WHEREAS,thefailuresofthecurrentenergysystemhavecausedgrievousharmbycausingcatastrophicwildfires,smoke,shutoffs,environmentalinjustice,climatedisruption,theunnecessarydeaths,thedestructionofacresoflandandbuildings,andescalatingrates,including:○ Substantialandexcessiveratehikes,theeconomicimpactsofwhicharefeltmoststronglybylow-incomecommunities,IndigenousPeople,andcommunitiesofcolor.ConsistentwithRichmond’sHealthinAllPoliciesprogram(HiAP,OrdinanceR.M.C9.15,adoptedin2014),werecognizeunemploymentandlackofsufficientincomearestrongdeterminantsofhealthoutcomes.PovertyandunemploymentinRichmondarehigherthantheregionalaverage.Thus,PG&E’sratehikeshaveadisproportionateimpactonRichmondresidents. ○ PG&E-causedwildfires,duetointentionalandgrosscriminalnegligenceinmaintainingtheirtransmissionanddistributioninfrastructure,andlackoftransparencyregardingsafetychecksforthepurposeofmaximizingprofitsfortheirshareholdersandexecutives,generatearangeofadverseoutcomesforcommunitiesacrossCalifornia,suchasunnecessarydeaths,destructionofforestsandproperties,respiratoryharmsfromsmoke,mentalhealthimpactsandeconomicimpacts. Furthermore,PG&Ehasdisplacedcommunities,havedestroyedhomesandcommunities,andhasbeenfoundandadmittedguiltofhavingkilledoveronehundredpeople.PairingimpactsofsmokeexposurewithRichmondresidents’disproportionateratesofrespiratoryconditionsmeanspreventingwildfiresisofsignificantinteresttotheCityofRichmond. ○ "NumerousstudiesbytheCaliforniaEnergyCommission(CEC)andothershavehighlightedtheimpactofclimatechangeonCalifornia’senergyinfrastructure,whichinturnimpactspower 1 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB350 availabilitytotheCity.Potentialnegativeimpactsontheenergygridsystemincludehighertemperaturesstressingpowerplantcapacity,electricitygeneration,transmissionlines,substationcapacity,andpeakelectricitydemand;increasedwildfirefrequencyorseverityandtheresultingimpactsneartransmissionlines"(RichmondClimateActionPlan,Page74) ○ Shut-offs,whichcausesignificanthealth,safety,andeconomicimpactsonlow-income,disabled,children,babies,andelderlypeopleduetoperishablefoodgoingbadandrefrigeratedmedicationsexpiringwhenthepowerisoutforextendedperiods;endangermentoflifeandsignificanthealthimpactsonpeopledependentonpowertolivethroughdevicessuchasventilators,andelectricwheelchairs,andairconditioningorcoolingduringextremeheatdays,andcommunicationsissuesformpoweroutages;and WHEREAS,Richmondfacessignificantinterconnectiondelaysoninfrastructureandcleanenergyprojects.Operationalizationofelectrical,distributedsolarandbatteryprojectsdependsonPG&E;and WHEREAS,theCityofRichmond’selectricalandgasinfrastructurefacesuniquerisksofinundationorlimitedaccesstoenergyfacilitiesorinfrastructureduetofloodingandsealevelrise(referenceRC3.14andRC3.20,pageE-82,ClimateActionPlan);and WHEREAS,Richmondresidentsfacetheuniquerisksofflaring–increasedairpollutionduetothereleaseofhealth-harmingtoxinssuchassulfurdioxide,carbondioxide,polycyclicaromatichydrocarbons,dioxins,metalliccomplexes,andhydrogensulfideintotheair–attheChevronrefinery.SomeflaringincidentshavebeencausedasaresultofPG&Epoweroutages;and WHEREAS,RichmondresidentsexperiencetheadverseeffectsofreceivingelectricpowerandgasutilizingtheinfrastructureofPG&E,aninvestor-ownedutility,including:○ Therecognitionthatratesarehigherininvestor-ownedutilityserviceterritoriesacrossCalifornia--includinginPG&E’sserviceterritory--thaninnot-forprofitutilities(whichincludesmunicipalutilities,ruralelectriccooperatives,andtribalutilities),whichhasresultedinworkingclassandlow-incomepeoplepayinghigherrates ○ TherecognitionthatPG&Eisincentivizedtomakeexpensiveinfrastructureinvestmentsthatmaximizeshareholderprofits,overprioritizingsafety,reliabilityandenvironmentalbenefitsforratepayers.
NOWTHEREFOREBEITRESOLVED,theCityofRichmonddeclaresthatPG&E’sfailureshavemadeitunsafe,unaffordable,andunsustainabletoremainasNorthernCalifornia’selectricutilitymonopoly.AnalternativetoPG&Eisneeded.OurcommunityresidentswouldbenefitgreatlyfromendingPG&E’smonopolycontroloftheenergytransmissionanddistributionsystem;and BEITFURTHERRESOLVED,Forallofthesereasonsandmore,theCityofRichmonddeclaresitisinthebestinterestoftheirresidentsthatCaliforniamakeaJustTransitiontonot-for-profitutilityservicemodels,andawayfromallfor-profitutilityservicemodels;and BEITFURTHERRESOLVED,theCityofRichmondurgestheGovernorandtheLegislatureto:● ImplementGoldenStateEnergythroughlegislation,workingcloselywithfrontlinecommunity 2 representatives,includingbutnotlimitedtoEnvironmentalJusticegroups,wildfiresurvivorcommunities,Labor,peoplewithdisabilities,Indigenousleaders,peopleharmedbyPG&E’snegligence,andeconomic,racial,andsocialjusticeorganizations,todesignandgovernGoldenStateEnergy. ● EnableaJustTransition
3 awayfromPG&Eandtowardthenon-profitGoldenStateEnergyastheProviderofLastResortfortheinvestor-ownedutility’sterritory. ● DesignGoldenStateEnergytobeaninstitutionthatisstructurallyaccountabletothepublic,withmeaningfulandequitablecommunityengagementpractices,ratherthantotheinvestor-ownedutilities,theCaliforniaPublicUtilitiesCommission,theGovernor’sofficeoritsdepartments,andthatisnotledbycurrentorformeremployeesofInvestor-OwnedUtilities(IOUs). 3 PuttingCaliforniaontheHighRoad:AJobsandClimateActionPlanfor2030 2 "Frontlinecommunitiesarethosewhoaremost vulnerabletoaparticularburdenorimpact.Theyarealsomostsensitivetoitseffects,andhavelessadaptivecapacitytomitigatetheharmtheyareexperiencing.Forexample,inRichmond,CAresidentsinanEnvironmentalJustice(EJ)neighborhoodadjacenttohighpollutingfacilitiessuchasrefineries,whichresultinadversehealthimpacts.Low-incomeandBIPOCresidentsofEJneighborhoodsarealsofrontlineandmostvulnerabletoclimateimpacts:theyaremostexposed,moresensitiveto,andhaveloweradaptivecapacitytoadapttotheimpactsofclimatechange.Aslow-incomeresidentsofEJcommunitiesareleastresponsibleforcausingtheclimatecrisisinthefirstplace,climatechangeendsupbeingan‘injusticemultiplier.’”(OaklandGeneralPlanUpdate2045, RacialEquityImpactAssessment| EnvironmentalJustice&SafetyElements,MarybelleNzegwuTobias&ColinMiller,Environmental/JusticeSolutions,p.5,2023,availableonlineathttps://cao-94612.s3.amazonaws.com/documents/Public-Review-Draft_-EJ_Safety-Elements_REIA_3.23.23.pdf)