Letters from the Public — San Jose City Council, October 18, 2022

10/17/22, 10:12 AM Mail - Agendadesk - Outlook
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Agenda Item 6.2: Sunset the DER exemption in the Natural Gas Infrastructure Prohibition Ordinance
Shreya Krishnan < >
Sun 10/16/2022 10:29 PM
To:District1 <[email protected]>;District 10 <[email protected]>;District2 <[email protected]>;District3 <[email protected]>;District4 <[email protected]>;District5 <[email protected]>;District 6 <[email protected]>;District7 <[email protected]>;District8 <[email protected]>;District9 <[email protected]>;The Office of Mayor Sam Liccardo <[email protected]> Cc: City Clerk <[email protected]>;

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Dear Mayor Sam Liccardo, Vice Mayor Chappie Jones, and Councilmembers Sergio Jimenez, Raul Peralez, David Cohen, Magdalena Carrasco, Dev Davis, Maya Esparza, Sylvia Arenas, Pam Foley, and Matt Mahan,

I urge you to protect our climate, protect frontline communities from gas extraction and pipelines, and set a good example for other cities. San Jose must do what it takes to reach carbon neutrality by 2030.

You are moving in the right direction by supporting residents and businesses to electrify EXISTING buildings. Now it’s time to stop allowing NEW gas infrastructure to be built. Gas-powered fuel cells are like mini peaker plants that release enormous quantities of greenhouse gas emissions and are simply incompatible with achieving our climate smart goals.

Please take action right now to sunset this harmful DER exemption by December 31, 2022.

Our children are counting on you.

Sincerely,
Shreya Krishnan

10/17/22, 10:13 AM Mail - Agendadesk - Outlook
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Agenda Item 6.2: Please remove the DER exemption to the Natural Gas Infrastructure Prohibition Ordinance
Sean Armstrong < >
Sun 10/16/2022 11:42 PM
To:The Office of Mayor Sam Liccardo <[email protected]>;District1 <[email protected]>;District2 <[email protected]>;District3 <[email protected]>;District4 <[email protected]>;District5 <[email protected]>;District 6 <[email protected]>;District7 <[email protected]>;District8 <[email protected]>;District9 <[email protected]>;District 10 <[email protected]> Cc: City Clerk <[email protected]>;
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Honorable Councilmembers,
Please remove the DER exemption because:

1. Delivering methane to a fuel cell in San Jose means there is guaranteed 3% (or greater) methane leak rate before the gas is used by a fuel cell. Leaked Methane is causing roughly 40% of climate change.

2. Fuel cells are not secure to power outages--the 1989 Loma Prieta Earthquake shut down methane delivery in the Bay Area for 10 days, while grid electricity was restored in less than 24 hours.

3. San Jose can't meet its climate goals, nor show intellectual leadership, by allowing slick salesmen to greenwash the climate disaster of delivering methane to fuel cells so they can have cheaper electricity while the rest of us pay grid rates.

Thank you for considering the removal of the DER exemption from San Jose's leadership ban on expanding fossil fuel use in the City.

Sincerely,
Sean Armstrong

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Sean Armstrong
(he/him for business, but occasionally she/her)
Managing Principal, Redwood Energy
Schedule a meeting with me at: calendly.com/seanarmstrong (voicemail)
(unceded Wiyot Territory)
redwoodenergy.net
Innovation Award from the Department of Energy-2020
Grand Prize Winner of the United Nations World Habitat Awards-2017 Sustainability Award of the SoCal Building Industry Association of -2017 Grand Prize Winner of the International PCBC Gold Nugget Awards-2016 Innovation Award from the Department of Energy-2015

10/17/22, 10:13 AM Mail - Agendadesk - Outlook
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Agenda Item 6.2: Sunset the DER exemption in the Natural Gas Infrastructure Prohibition Ordinance
Casey Cameron < >
Mon 10/17/2022 7:26 AM
To:The Office of Mayor Sam Liccardo <[email protected]>;District1 <[email protected]>;District2 <[email protected]>;District3 <[email protected]>;District4 <[email protected]>;District5 <[email protected]>;District 6 <[email protected]>;District7 <[email protected]>;District8 <[email protected]>;District9 <[email protected]>;District 10 <[email protected]> Cc: City Clerk <[email protected]>;
>

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Dear Mayor Sam Liccardo, Vice Mayor Chappie Jones, and Councilmembers Sergio Jimenez, Raul Peralez, David Cohen, Magdalena Carrasco, Dev Davis, Maya Esparza, Sylvia Arenas, Pam Foley, and Matt Mahan, I urge you to protect our climate, protect frontline communities from gas extraction and pipelines, and set a good example for other cities. San Jose must do what it takes to reach carbon neutrality by 2030.

Please take action right now to sunset this harmful DER exemption by December 31, 2022. Our children are counting on you.

Sincerely,
Casey Cameron

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Agenda Item 6.2: Sunset the DER exemption in the Natural Gas Infrastructure Prohibition Ordinance
Hoai-An Truong
Tue 10/18/2022 9:16 AM
To:The Office of Mayor Sam Liccardo <[email protected]>;District1 <[email protected]>;District2 <[email protected]>;District3 <[email protected]>;District4 <[email protected]>;District5 <[email protected]>;District 6 <[email protected]>;District7 <[email protected]>;District8 <[email protected]>;District9 <[email protected]>;District 10 <[email protected]> Cc: Mothers Out Front Northern California ;City Clerk
<[email protected]>

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Dear Mayor Sam Liccardo, Vice Mayor Chappie Jones, and Councilmembers Sergio Jimenez, Raul Peralez, David Cohen, Magdalena Carrasco, Dev Davis, Maya Esparza, Sylvia Arenas, Pam Foley, and Matt Mahan,

I hope you are listening, reading and heeding the profound concerns of Mothers Out Front Silicon Valley and our allies about the DER exemption. The DER exemption allows gas-powered fuel cells (and other types of energy systems connected to the fossil gas infrastructure) to be built in new construction in contradiction to the goals of the Natural Gas Infrastructure Prohibition Ordinance. This exemption allows egregious amounts of GHG emissions - many more times than the emissions from using SJCE with diesel as backup power, as you can see from the graph above from NRDC. The longer the exemption is in place, the more likely these emissions will multiply.

Please keep in mind, DER types of energy systems are not a solution that will ever be cost-effective for small businesses. Fortunately, there are more affordable and sustainable solutions for businesses

needing uninterrupted power, including solar with battery storage. Sunsetting the DER exemption will not harm the small businesses of San José. Fuel cells are extremely expensive and usually used on enterprise-scale by companies that should have to follow the same rules as the rest of us. The fact that the exemption is vaguely worded as “DER” means that it is a "CO2-wolf in fuel cell clothing” allowing other, even more climate-destabilizing energy sources powered by fossil gas. So-called "natural" (fossil) gas consists mostly of methane, which is up to over 80 TIMES more potent a greenhouse gas than CO2.

We are concerned that Google could apply to use gas-powered fuel cells or another gas-powered energy system at its very large new downtown campus, which would lock in enormous amounts of methane gas use for YEARS.

My worry is that other large corporations will follow Google's example. My worry is that other cities across Silicon Valley, the Bay Area and the nation will follow the City of San José's example and replicate this misguided exemption. And we will blow past any possibility of carbon neutrality by 2030.

Our very water is drying up from this terrible drought. This is already beginning to devastate our Central Valley, the breadbasket of the world, which we also depend on. We cannot afford for the climate crisis to grow worse. Please sunset the DER exemption with all due haste by December 31, 2022. Our children are counting on you.

Thank you for your hard work and dedication to public service.

Hoai-An Truong
Volunteer, Mothers Out Front Silicon Valley
San José resident, D6
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Agenda Item 6.2 Climate Smart San Jose Semi-Annual Report Jimmy Apffel
Tue 10/18/2022 9:30 AM
To:Cohen, David <[email protected]>
Cc: City Clerk <[email protected]>;Liccardo, Sam <[email protected]>;Jones, Chappie <[email protected]>;Jimenez, Sergio <[email protected]>;Peralez, Raul <[email protected]>;Carrasco, Magdalena <[email protected]>;Davis, Dev <[email protected]>;Esparza, Maya <[email protected]>;Arenas, Sylvia <[email protected]>;Foley, Pam <[email protected]>;Mahan, Matt <[email protected]>

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Dear Councilmember Cohen,

Please see the aached leer for submission regarding Agenda Item 6.2 at today’s city council meeng (October 18th, 2022.)

Thank you.

Best,
James Apﬀel

James Apffel
Government and Community Relations Coordinator

Bloomenergy
4353 North First Street, San Jose, CA 95134
www.bloomenergy.com

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Oct 18, 2022

David Cohen
Councilmember
San Jose City Hall
San Jose, CA 95113

Dear Councilmember Cohen,

Bloom Energy is committed to reducing emissions and helping our customers navigate a changing energy landscape. We support well-designed building decarbonization programs that will advance the fight against climate change and air pollution without inadvertently distorting the electricity sector in favor of higher-emitting centralized fossil power plants and diesel backup generators. We are concerned, however, that the extension of these policies outside of buildings has the potential to create inadvertent market distortions in the electricity sector that favor higher emitting resources.

Bloom has had the opportunity to engage with city staff at their request to explain our concerns backed by data and analytics and we welcome a continued discussion on a critical and complicated issue with implications for our climate, public health, energy resiliency, and cost of living. As the City Council continues to deliberate on its approach to building decarbonization, we ask that the following points be taken into consideration:

• The installation of non-combustion fuel cell distributed energy resources in San Jose will have the effect of reducing climate-forcing greenhouse gas emissions over the near to medium term and will adapt to use cleaner fuels as they become more available, including zero-carbon hydrogen.

• Fuel cell distributed energy resources in San Jose will reduce nearly all smog-forming pollutants and electricity-related water use compared to the grid.

• Bloom Energy Servers generate electricity that is cleaner than the grid electricity that it displaces, are skid mounted and moveable, and are regularly upgraded over their lifetime which allows for them to be configured for increasingly cleaner fuels.

• The California electric grid continues to be unstable, providing critical facilities with very few options for energy resilience and increasing the likelihood that diesel backup generators will run more often in the future.

• Prohibiting natural gas for non-combustion distributed energy resources while simultaneously not prohibiting gas for higher-emitting centralized generators on the grid or prohibiting diesel fuel, has the inadvertent effect of increasing the operations of those far dirtier resources.

• Since the building decarbonization ordinance was first enacted in 2020, there have been three non-combustion fuel cell projects totaling 7.2MW installed. During the same time frame, at least 99MW of diesel combustion was installed within the City of San Jose, with 90MW more diesel combustion currently in the process of being approved through small power plant exemptions from the CEC.

• Overall, there are more than 499MW of backup generation, 90% of which is diesel, in San Jose.

According to a study from M. Cubed, between December 2018 and June 2020, there was a 31.07% increase in the number of backup generators in the city.

Bloom Energy would be more than happy to engage with relevant stakeholders to work together to create a more sustainable and resilient future for San Jose. We are hopeful that there will be an opportunity for continued dialogue with staff and any interested advocates before the Council next takes up any issues related to the City’s building decarbonization initiatives.

Best Regards,

James Apffel
Government & Community Relations Coordinator

cc. Mayor Sam Liccardo, Vice Mayor Chappie Jones, Councilmembers Sergio Jimenez, Raul Peralez, Magdalena Carrasco, Dev Davis, Maya Esparza, Sylvia Arenas, Pam Foley, and Matt Mahan

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Agenda Item 6.2: Updated letter with NRDC and other new signers Linda Hutchins-Knowles
Tue 10/18/2022 12:02 PM
To:The Office of Mayor Sam Liccardo <[email protected]>;District1 <[email protected]>;District2 <[email protected]>;District3 <[email protected]>;District4 <[email protected]>;District5 <[email protected]>;District 6 <[email protected]>;District7 <[email protected]>;District8 <[email protected]>;District9 <[email protected]>;District 10 <[email protected]> Cc: City Clerk <[email protected]>;Agendadesk <[email protected]>

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Dear Mayor Liccardo, Vice Mayor Jones and Council Members, Please find attached an updated coalition letter that now includes the Natural Resources Defense Council (NRDC) and two additional individuals, bringing the total to 17 organizations and 70 individuals. We are unified in requesting that you sunset the exemption for distributed energy resources in San Jose’s otherwise exemplary Natural Gas Infrastructure Prohibition Ordinance.

Thank you for your consideration,
Linda Hutchins-Knowles
Co-founder and volunteer, Mothers Out Front Silicon Valley

October 17, 2022
October 18, 2022 (updated with new sign-ons)
Subject:Move swiftly to sunset the DER exemptionclause in the Natural GasInfrastructure Prohibition Ordinance

Dear Mayor Sam Liccardo, Vice Mayor Chappie Jones, and Councilmembers SergioJimenez, Raul Peralez, David Cohen, Magdalena Carrasco, Dev Davis, Maya Esparza,Sylvia Arenas, Pam Foley, and Matt Mahan, The undersigned 17 organizations and 70 individuals collectively represent thousandsof residents of San Jose and neighboring Silicon Valley cities. In light of increasingclimate catastrophes and public health hazards—from superstorms, extreme heat andrising sea levels to out-of-control wildfires and devastating drought—we ask that SanJosé do even more to reign in its greenhouse gas emissions and set an even strongerexample for other cities to follow.

We are grateful for the bold climate action Council has recently taken, including theElectrify San José: Framework for Existing Building Electrification and the CarbonNeutral by 2030 Acceleration Strategy. Through these and other policies, San José hasdemonstrated its commitment to transitioning in an equitable and thoughtful way fromclimate-destabilizing “natural” (mostly methane) gas pipeline infrastructure to 100%renewable electricity, and we commend you and staff for that.

Unfortunately, the distributed energy resources (DER)exemption clause(17.845.045)inthe Natural Gas Infrastructure Prohibition Ordinance, updated on December 1, 2020,stands out in its contradiction to the goals of Climate Smart San José. It offers aloophole for distributed energy resources using fossil gas infrastructure to be installed innew construction in San José through at least December 31, 2024, skirting theprohibition on new gas pipeline infrastructure and undermining the City’s ability to reachcarbon neutrality by 2030.

We therefore ask that you amend this ordinance to sunset the DER exemption byDecember 31, 2022, the same date that the exemptions for Manufacturing andIndustrial Facilities and Food Service Establishments expire (over two yearssince the exemption was granted).

Many of us have publicly opposed the DER exemption since its introduction in late2020. With the October 2022 update of the Climate Smart San José plan and the June2022 approval of the Carbon Neutral by 2030 Acceleration Strategy, the time hascome to sunset this exemption for the following seven reasons:

1. Protect our climate and do what it takes to reach carbon neutrality by 2030:The DER exemption allows for the continued expansion of new gas pipelines inSan José. These soon-to-be stranded assets are a threat to our climate. While touted as “clean energy,” fuel cells run on fossil gas 24 hours per day, 7 days perweek, 365 days per year to power facilities using large amounts of energy. Thusthey generate far more greenhouse gas emissions than similar facilities poweredby San Jose Clean Energy with occasional use of diesel generators for back-uppower, as illustrated in the graphic below.

Source: NRDC
While San José’s GHG inventory currently counts only 20 fuel-cell installations inoperation in San José, these 20 installationscontributedisproportionately tothe GHG emissions generated by buildings in the city.According to staffdata, they have a combined generation capacity of about 30MW and produceabout 77,000 metric tons of carbon dioxide equivalent per year.

While staff states that this is about “one percent of all communitywidegreenhouse gas emissions” that is actually a huge proportion. These 20 fuel cellinstallations alone contribute 4% of the GHG emissions from San Jose’s232,541buildings. Therefore, they represent one ofSan Jose’smost significantsources of GHG emissions from buildings.If the Councilis serious aboutachieving carbon neutrality by 2030, it can’t allow any more gas-powered fuelcells to be installed.

2. Practice good governance:The DER exemption shouldnever have beengranted in the first place. It was hastily added at the last minute, forcing Councilto make a decision without full knowledge of the impacts of gas-powered fuelcells and other forms of gas-powered Distributed Energy Resources (DER). SanJosé had been studying the natural gas prohibition for three years, including

input from 200 individuals and 65 organizations. This transparent process waseffectively undercut by alast-minute, backdoor lobbyingpushby Bloom Energy.In fact, the language for the DER exemption waswrittenby Bloom staff, a blatantconflict of interest. For the sake of integrity and good governance, thisspecial-interest exemption must be revoked.

3. Ensure policy consistency:The DER exemption contradictsthe goals ofClimate Smart San José and skirts a key pillar of San Jose’s pathway to carbonneutrality: the Natural Gas Infrastructure Prohibition in new construction. SanJosé is working hard to support residents and businesses to electrify theirexisting homes and facilities, so why would it condone the continued build out offossil gas infrastructure, which moves us in the opposite direction? As San JoséSpotlight columnist Erin Zimmerman puts it “San Joséneeds to stand up for itsclimate goals.” The City faces a big enough challengeto electrify existingbuildings, so why would we allow the installation of major “natural” gas users likefuel cells?

4. Avoid unintended consequences:The DER exemption wasso broadly writtenthat it opens the door to other forms of dirty energy, including co-generation andtri-generation, which are highly polluting and inefficient technologies.StetSanborn (a LEED-certified architect from the Smith Group) explains that theexemption for DER is actually “a CO2-wolf in fuel cell clothing” that opens thedoor to power generation even dirtier than gas-powered fuel cells. The exemption“also includes all combined heat and power [CHP] systems, including co-gen andtri-gen systems, [which use fossil fuels and generate large amounts ofgreenhouse gas emissions and] which are far more widespread and far cheaperthan Bloom fuel cells. They also have a much longer lifespan, typically lastingfrom 12-20 years.” Council did not intend to allow such dirty forms of energywhen it added the DER exemption; it merely meant to allow fuel cells. Therefore,it’s vital that this wide-open door be shut immediately.

5. Protect frontline communities:Gas-powered fuel cellsperpetuate the use offossil gas, which is extracted and refined primarily in low-income communitiesand BIPOC communities, who suffer serious health harms as a result. Allowingnew buildings to install new gas pipelines to power fuel cells contributes toenvironmental injustice. By insisting that all new buildings be powered by cleanelectricity, San Jose can stand in solidarity with frontline communities andchampion environmental justice.

6. Set a good example:Given San José’s leadership on climate action andprominence as the Capital of Silicon Valley, its policies are often adopted by othercities. It would be a shame if this special-interest exemption were replicated inthe policies of other cities that might not understand the climate damage done bygas-powered fuel cells. San José should set a good example, not risk modelingan exemption that never should have been granted in the first place.

7. Remove an unnecessary and duplicative exemption:Citystaff report that noexemptions for new fuel cell installations have been permitted since the NaturalGas Infrastructure Prohibition Ordinance went into effect for commercial buildingsin August 2021. Therefore, it appears that the ordinance is not needed. In anycase, the ordinance contains a similarly worded “hardship clause” that a newfacility with a mission-critical need to use fuel cells or another type of DER couldapply for if there were no other solution for its energy needs. Why continue toinclude an exemption that is not needed and duplicates the hardship exemption? San José, as the nation's tenth largest city and the largest with a Carbon Neutral by2030 goal, has positioned itself as a climate champion. We ask that you help San Josélive up to that reputation and model best practices for other cities looking to us forleadership. Please take action right now to sunset this harmful DER exemption. Ourchildren, and their children, are counting on you to prioritize climate safety over breaksto big corporations.

Sincerely,
17 Organizations:
350 Silicon Valley - Cheryl Weiden, Member of Steering CommitteeActerra: Action for a Healthy Planet - Lauren Weston, Executive DirectorClimate Reality Project: Silicon Valley chapter - Karen Nelson, Co-ChairGuadalupe Regional Group of the Sierra Club - Gary Latshaw, ChairMenlo Spark - Diane Bailey, Executive DirectorMothers Out Front Silicon Valley - Susan Butler-Graham, Team CoordinatorPhysicians for Social Responsibility SF Chapter - Robert Gould, MD, PresidentNatural Resources Defense Council (NRDC) - Olivia Walker, Equitable BuildingDecarbonization AdvocateSan Jose Community Energy Advocates - Ruth Merino, ChairSan Mateo Climate Action Team - Michelle Hudson, Co-LeaderSierra Club Loma Prieta Chapter - Dashiell Leeds, Conservation OrganizerSilicon Valley Youth Climate Action - Hoi Poon, Co-Founder, Advisor Silicon Valley Youth Climate Action, San Jose Youth Climate Action Team - DanicaKubota, Co-LeadSilicon Valley Youth Climate Action, Santa Clara Chapter - Vincent Chen, MemberSustainable Silicon Valley - Jennifer Thompson, MemberCarbon Free Palo Alto - Bruce Hodge, FounderCarbon Free Silicon Valley - Bruce Hodge, Chairman 70 Individuals:1. Hoi Poon, San José Resident, District 12. Anthony Strawa, San José Resident, District 13. Daphne Zhu, San José Resident, District 14. Theresa Vu, San José Resident, District 25. Deborah St. Julien, San José Resident, District 26. Laurie Bostick Cammon, San José Resident, District 27. Erin Fitzgerald, San José Resident, District 28. Gisselle Pinto, San José Resident, District 39. Brian Haberly, San José Resident,District 310.Mila Bekele,San José Resident,District 311.Isabelle Nguyen Chappuis,San José Resident,District412.Blanca Alvarado,San José Resident,District 513.Juan Estrada, San José Resident, District 5, Founder, District 5 United14.Hoai-An Truong,San José Resident,District 615.Janet Burchinal,San José Resident, District 616.Ruth Merino,San José Resident, District 617.Danica Kubota,San José Resident, District 618.Rosaline Graham, San José Resident, District 619.Casey Cameron, San José Resident, District 620.Deborah Garvey, San José Resident, District 621.Roy Nordblom, San José Resident, District 622.Shreya Krishnan, San José Resident, District 723.Moria Merriweather, San José Resident, District 724.Sanjana Sathishkumar, San José Resident, District 825.Susan Trivisonno, San José Resident, District 826.Julie Allingham, San José Resident, District 827.Amanda Bancroft, San José Resident, District 928.Karpagam Srinivasan, San José Resident, District 929.Blaine Burgstrom, San José Resident, District 930.Joel Masser, San José Resident, District 931.Jenny Green,San José Resident, District 932.Linda Hutchins-Knowles, San José Resident, District 9

33.Susan Butler-Graham, San José Resident,District 934.Kathy Kleinsteiber -San José Resident, District 935.Linda Yoon -San José Resident, District 936.Jennifer Castro,San José Resident, District 937.David Poeschel,San José Resident,District 1038.Sam Jones, San José Resident, District 1039.Martina Keim, San José Resident, District 1040.Antara Gangwal, San José Resident, District 1041.gabriella martinez, San José Resident, District 1042.Henry Yao,San José Resident (zip code 95129)43.Peri Caylor, Silicon Valley resident44.Linh Dan Do, Silicon Valley resident45.DonnaDavies,Silicon Valley resident46.Leane Eberhart, Silicon Valley resident47.Gary Latshaw, Silicon Valley resident, Staff-scientist at Securethefuture2100.org48.John McKenna, Silicon Valley resident49.ZacharyAnglemyer, Silicon Valley resident50.Jennifer Thompson,Silicon Valley resident51.Kristel Wickham,Silicon Valley resident52.Cheryl Weiden,Silicon Valley resident53.Bruce Naegel,Silicon Valley resident54.Eleanor Arron,Silicon Valley resident55.Rohan Rawat,Silicon Valley resident56.Krittika Iyengar, Silicon Valley resident57.Vincent Chen, Silicon Valley resident58.Xinpei Lu, Silicon Valley resident59.Kat Wilson, Silicon Valley resident60.Bruce Hodge,Silicon Valley resident61.Michelle Matsumoto,Silicon Valley resident62.Marn-Yee Lee, Silicon Valley resident63.Kristen Kinczel, Silicon Valley resident64.Kathy Battat, Silicon Valley resident65.Nicole Phan, Silicon Valley resident66.Jeffrey Perrone, San Francisco67.Kevin Ma, Silicon Valley resident68.Terry Nagel, Silicon Valley resident69.Ole Agesen, Silicon Valley resident70.Dana Murphy, Silicon Valley resident

San Jose City CouncilOctober 18, 2022

San Jose City Council
October 18, 2022