City Council, Item 6.2
June 14, 2022
Presented by:
Kerrie Romanow
Director, Environmental Services Department (ESD)
Zach Struyk
Assistant Director, Community Energy Department
Julie Benabente
Deputy Director, ESD
Ramses Madou
Division Manager, Department of Transportation
Climate Smart
San José:
Pathway to
Carbon Neutrality
by 2030
BACKGROUND
• Climate Smart San José plan
(2019)
• Aligned with Paris Agreement
• Focused on energy,
water and mobility
• Science indicates we must do
more, faster, to avoid significant
and irreversible impacts
• Council adopted aspirational
goal of carbon neutrality by 2030
• Directed staff to return with
Climate Smart acceleration
strategies in June 2022
2 VISION
San José will become a better,
stronger and more resilient
community by accelerating
climate action and moving to
carbon neutrality by 2030.
Commitments to help us
achieve our vision:
• Engaging our community
throughout the planning
process
• Making all voices heard
3 FOCUS AREAS
The Pathway focuses on three key areas, which together
generate 85 percent of the greenhouse gas (GHG) emissions in San José.
Transportation Buildings Power Source
4 KEY STRATEGIES
The Pathway identifies four key acceleration strategies toward carbon neutrality by 2030:
Transportation Buildings Power Source
5 Power Our Community with
100% Carbon-Neutral
Electricity
Move to
Zero-Emission
Vehicles
Reduce the Miles We
Travel in Our Vehicles
by at Least 20%
Switch Our
Appliances from
Fossil Fuel to Electric
STRATEGY 1: MOVE TO ZERO-EMISSION VEHICLES
6 Key Data Takeaways:
• Focus should be on
passenger vehicles, as well as
trucks and commercial
vehicles
• Need to significantly
accelerate pace of electric
vehicle (EV) adoption and
buildout of EV infrastructure
Pathway includes supporting actions
to increase EV charging and EV awareness and uptake
STRATEGY 2: REDUCE VEHICLE MILES TRAVELLED BY 20%
7 Key Data Takeaways:
• Reducing vehicle miles travelled (VMT) to
current 2030 Climate Smart goal will
require significant focus
• Development choices made from now to
2030 will have lasting VMT and GHG effects
Pathway includes supporting actions to improve and
encourage transportation mode-shift.
STRATEGY 3: SWITCH APPLIANCES TO ELECTRIC
8 Key Data Takeaways:
• Focus should be on residential space and water
heating
• Existing programs and incentives can support
transition
• Low-income communities will require assistance
• Solar and appliance replacement at end-of-life
can improve economics
Pathway includes supporting actions to guide equitable building electrification and streamline implementation
STRATEGY 4: 100% CARBON-NEUTRAL ELECTRICITY
9 Key Data Takeaways:
• SJCE already offers low-carbon power
• Should maintain and potentially grow
SJCE's customer base
Pathway includes supporting actions to procure additional renewables and storage, support grid resiliency and renewable service uptake, and increase onsite solar and storage.
• Should monitor GreenValue enrollment and impact on goals • Reaching goal requires deployment of both utility-scale and rooftop solar, paired with energy storage
LEADING BY EXAMPLE
10 Key Data Takeaways:
• Municipal operations are minor contributor but
under City’s control
• Focus on employee commutes & buildings
• Within buildings, focus on Airport central utility
plant
• Can move to 100% renewable electricity quickly
via SJCE
Pathway includes supporting actions to support all-electric municipal buildings, address employee commutes and City fleet, and move to carbon-neutral electricity
THE SCALE OF EFFORT REQUIRED
11 90% EVs =
~83K passenger EVs/yr. and
~7.5K public EV chargers/yr.
20% VMT reduction/ service population =
~2% reduction in VMT/service
population/yr.
100% buildings electrified =
~43K homes/ yr. and
~9.7M sq.ft. commercial space/ yr.
100% carbon-neutral power =
~650 MW of renewables, ~200-300
MW of storage, and ~200 MW of
hybrid and/or green gas
SUPPORTING RESOURCES
• Existing programs and incentives
• Public-private partnerships
• Significant federal and state
funding to initiate and scale
programs
• San José Clean Energy funding
for programs anticipated to start
in Fiscal Year 24-25
12 LOOKING AHEADNEXT STEPS
• Continue to address cost and grid reliability
• Broad public engagement and technical analysis to
refine initial supporting actions
• Integrate into upcoming Climate Smart update
• Ongoing tracking and reporting of progress
• Secure funding
13 City Council, Item 6.1
June 14, 2022
Presented by:
Kerrie Romanow
Director, Environmental Services Department (ESD)
Zach Struyk
Assistant Director, Community Energy Department
Julie Benabente
Deputy Director, ESD
Climate Smart
San José:
Existing Building
Electrification
Framework
BACKGROUND
15 • Climate Smart San Jose plan (2019) includes
building electrification goals
• City adopted all-electric building requirements for
new buildings (2019, 2020)
• Council adopted aspirational goal of carbon
neutrality by 2030
• Considering Climate Smart acceleration
strategies today
• Framework is a supporting action in the
building electrification acceleration strategy
• Community engagement on Framework 2020-
2022
• Draft Framework released in March 2022
• Held additional community meetings to
refine
Communitywide Greenhouse Gas Emissions
WHAT IS BUILDING ELECTRIFICATION?
16 Replacing natural gas
appliances in our homes
and businesses with electric
options, such as:
• Heat pump
heating, ventilation, and
air conditioning (HVAC)
systems
• Heat pump water heaters
BENEFITS OF BUILDING ELECTRIFICATION
Health Energy Efficiency Clean Energy
17 • Ability to couple
electric appliances with
smart controls to allow
use when energy is
cleanest
• Ability to use on-site
solar and battery back-
up
• Lower operating
costs as a result of
highly energy-
efficient heat pump
technology
(saving energy
and money!)
• Improved indoor
air quality
by eliminating
harmful pollutants
emitted from
natural gas
appliances
MOMENTUM FOR BUILDING ELECTRIFICATION
18 Regional Regulations CA Building Code State Investment Federal Investment Bay Area Air
Quality Management
District draft
regulations -
Phase out the sales
of some gas
appliances starting
in 2027
Adopted 2022
Building Code –
Strongly incentivizes
all-electric new
construction
BUILD ($80M) and
TECH ($120M)
incentives for all-
electric buildings
Infrastructure and
Investment Jobs Act -
over $65B for grid
infrastructure
upgrades, energy
efficiency,
electrification, and
renewable energy
Governor’s
Proposed Budget –
over $5B for
building
decarbonization
and grid reliability
COMMUNITY CO-CREATION
19 2020-2022 Meetings
with two community-
based organizations
(CBOs)
Three community
forums with over 40
CBOs, labor,
environmental,
development and
housing organizations
Five public
information meetings
BUILDING ELECTRIFICATION FRAMEWORK
20 The City’s Framework for Existing Building
Electrification does not propose any
mandates to switch out existing natural gas
for electric equipment.
• Provides the City with guidance on how to pragmatically prepare and support community transition away from
carbon-centric natural gas usage in existing homes and
businesses
• Includes co-created solutions with community-based
organizations and most impacted communities with a goal of making electrification accessible and beneficial for all
FRAMEWORK FOCUS AREAS
21 FOCUS AREA SUPPORTING STRATEGIES
22 • Raise awareness of
health impacts of
using gas
• Support community
led outreach
• Support regional and
state policy efforts
• Expand rebate
programs awareness
• Launch retrofit
accelerator
• Streamline permitting
• Provide cost
information/
resources
• Create community
resiliency hubs
• Support utility scale
development and
grid resiliency
• Expand access to
renewable energy
• Expand contractor
training opportunities
• Establish a workforce
development working
group
• Support regional
efforts to promote
high quality jobs
• Improve permit and
code compliance
FREQUENTLY ASKED QUESTIONS
23 COST
Installation Costs:
• For priority system upgrades
(HVAC, water heater), cost is
est. $2,500-$22,000 without
incentives
o 14%-17% less than natural
gas replacements
• Est. $4,300 for panel upgrade
Operational Costs:
• Electric appliances typically
reduce total home energy costs
GRID RELIABILITY
• State agencies and PG&E are
planning for future electricity
needs
• Modern gas appliances aren’t
operational in power outages
• Electric appliances can safely
use a back-up power source
• Electric appliances can
benefit from current and
emerging technologies
LOOKING AHEADNEXT STEPS
• Utilize Framework to guide
existing building electrification
work
• Continue to engage community on
programs and policies
• Secure and leverage resources to
support community
• Increase awareness of existing
programs, incentives, and
funding
24 25