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Memorandum

San Jose City Council
April 22, 2025

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Memorandum
Meeting
April 22, 2025
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San Jose City Council
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15
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Text extracted from the city's file for reading and search. Open the original on legistar.granicus.com. That file is the official record.

COUNCIL AGENDA : 4/22/2025
FILE : 25-417
ITEM : 6.2

TO: HONORABLE MAYOR AND FROM: Toni J. Taber, MMC
CITY COUNCIL City Clerk

SUBJECT: SEE BELOW DATE: April 9, 2025

SUBJECT: Climate Smart San José Plan Semi-Annual Report

Recommendation

As recommended by the Transportation and Environment Committee on April 7, 2025, accept the semi-annual report on the Climate Smart San José plan from September 2024 through February 2025.

CEQA: Not a Project, File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action. (Environmental Services) [Transportation and Environment Committee referral 4/7/2025 - (d)1]

TO: TRANSPORTATION AND

ENVIRONMENT COMMITTEE
FROM: Lori Mitchell
SUBJECT: Climate Smart San José Plan
Semi-Annual Update
DATE: March 17, 2025
Approved Date:

COUNCIL DISTRICT: CITYWIDE

RECOMMENDATION
Accept a semi-annual report on the Climate Smart San José plan from September 2024 through February 2025 and recommend this item for full Council consideration at the April 22, 2025, City Council meeting.

SUMMARY AND OUTCOME
This semi-annual Climate Smart San José (“Climate Smart”) update highlights the key activities completed, underway, and planned as of the September 2024 through February 2025 reporting period to keep City leadership and the San José community informed. Highlights include launching new building electrification and multifamily electric vehicle charger incentive programs, adding over 29 miles of new and upgraded protected bikeways, and receiving over $23 million in grant awards (pending execution) to support climate initiatives. The current hold on some federal funding is having a significant impact on the ability of the City to progress on major climate initiatives supporting electric vehicle charging infrastructure and building energy policy development. While the City is continuing to make progress towards its City Council- approved climate goals, continued City investment and focus is necessary to reach those goals.

BACKGROUND
In February 2018, City Council approved Climate Smart with specific goals and milestones to reduce communitywide greenhouse gas (GHG) emissions in alignment with the 2016 Paris Agreement, designed to prevent global temperatures from rising by more than 2ºC (or 3.6ºF). Environmental Services Department staff provide semi-annual updates on Climate Smart activities and produces communitywide and municipal (City T&E AGENDA: 4/7/25
ITEM: (d) 1
3/27/2025

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government operations) GHG inventories in alternating years to measure GHG emissions reduction progress. Staff update the City’s publicly accessible Climate Smart Dashboard annually to track and report on progress towards achieving Climate Smart goals.

In September 2019, City Council passed a Resolution declaring a climate emergency, acknowledging the urgency of climate change and the City’s need to take action. In November 2021, City Council adopted a resolution setting a communitywide carbon neutral by 2030 goal for San José. City Council approved the Pathway to Carbon Neutrality by 2030 in June 2022 to focus staff’s efforts on the following four key strategies to accelerate movement toward the achievement of this new carbon neutrality goal: move to zero emission vehicles; reduce the miles we travel in our vehicles by at least 20 percent; switch our appliances from fossil fuels to electric; and power our community with 100 percent carbon-neutral electricity. Staff is working on an administrative update of Climate Smart, which will include incorporation of the carbon neutrality by 2030 goal.

ANALYSIS

City staff across multiple departments (and in collaboration with various community partners) have continued to make significant progress, as detailed below, on programs and policies supporting Climate Smart goals.

Climate Smart Core Resources and Activities

Funding and Resources for Climate Smart Initiatives
Environmental Services Department staff collaborate across City divisions and departments to track and pursue private, state, and federal funding opportunities to support Climate Smart initiatives. Table 1 provides a summary of Climate Smart external resource acquisition for the reporting period and through Fiscal Year (FY) 2024-2025.

Table 1. Value of Acquired External Resources Supporting Climate Smart Goals Total Amount of Awards
Pending Execution in
Reporting Period
(Sept. 2024 – Feb. 2025)
Total Amount of Awards
Executed in
FY 2024-2025 to Date
(July 2024 – Feb. 2025)
Direct Funding $23,216,000 $1,175,000
In-Kind Resources $0 $0
Total $23,216,000 $1,175,000
It is important to highlight that over $23 million in City grant awards for Climate Smart initiatives are pending execution, primarily due to the current federal transition and

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funding freeze. The current hold on some federal funding is having a significant impact on the progress of major climate initiatives such as the installation of electric vehicle charging infrastructure at public libraries, community centers, and parks and the development of a building performance standard to reduce greenhouse gas emissions over time in covered buildings. Total funding awarded from granting agencies thus far in FY 2024-2025 includes support for initiatives to further transit station access and circulation planning, the adoption and implementation of the City’s Transit Oriented Communities policy, East San José public electric vehicle (EV) charging infrastructure, EV charging ports design and construction, and extreme heat resiliency in the community. The Departments of Energy, Environmental Services, and Transportation are recognizing and implementing these grants.

City staff directly applied for an additional $67.27 million in external funding in this reporting period, with several award negotiations or notices pending. City staff are also planning to submit applications for over $8.1 million in funding for Climate Smart initiatives in the next reporting period. Of these funds, over $52 million (78 percent) of the funding applied for and $2.5 million (31 percent) of the funding that City staff are planning to submit applications for are federal funds, which may not be awarded or delivered due to the current hold on some federal funding. The federal funding being requested would support low-carbon materials testing, a microtransit pilot in Eastside San José, and shoreline resiliency. City staff are closely monitoring and preparing for external funding opportunities to support Climate Smart goals such as building electrification, energy efficiency, weatherization, EVs and EV charging infrastructure, transportation mode shifting, and microgrids. City staff also continue to leverage and promote available external resources, incentives, and programs that align with Climate Smart goals.

Climate Advisory Commission
During the reporting period, the Climate Advisory Commission provided input on key initiatives including: the Transportation semi-annual update; San José Clean Energy’s (SJCE) rates and programs roadmap; and zero waste strategies.

Climate Smart Community Outreach and Engagement
• San José Climate Chronicles – In October 2024, Environmental Services Department staff launched the first issue of San José Climate Chronicles, a quarterly newsletter to improve overall residential engagement and provide a medium for residents to stay up-to-date and get involved in climate action in San José. The newsletter showcases climate action led by the City, highlights local climate initiatives within the community, and shares opportunities, resources, and events that support the City’s climate goals. The newsletter is published in English, Spanish, and Vietnamese.
• Electric Home Tour – SJCE sponsored the regional Electric Home Tour on October 19, 2024, which offered residents the opportunity to visit homes across the Peninsula and South Bay. These updated homes transitioned from gas-

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powered appliances to clean electricity. The Energy and Environmental Services Departments promoted the tour to residents and recruited homeowners to showcase their energy-efficient appliances, such as electric water heaters, heating, ventilation, and air conditioning (HVAC) systems, dryers, and induction cooktops. Over 730 people toured homes and 31 percent of attendees expressed high interest in adopting heat pump HVAC systems and heat pump water heaters within the next 3 years.
• Events Participation – Environmental Services and Energy Department staff have been actively engaged in 13 community events during the reporting period to raise awareness and disseminate information about Climate Smart programs, including the induction cooktop checkout program and available building electrification incentives. These events included Viva Calle, Comite de Fiestas Patrias, Bark in the Park, SJCE EV Ride + Drive, Story Road Night Market, Pumpkins in the Park, Neighborhood Association Conference, America Recycles Day, Community Gathering for Clean Air, Santa Visits Alviso, Winter Holiday Festival, County of Santa Clara Resiliency Hub, and Lunar New Year TET Festival. As a result of these efforts, staff successfully engaged with a total of over 1,300 individuals, facilitating discussions and connections within the community regarding sustainable practices and initiatives. • Climate Art Program – In October 2024, the Climate Art Program held a two- day convening of climate and art stakeholders throughout the state of California and beyond. This included a symposium at the San José Museum of Art focusing on knowledge sharing from sustainability and arts foundations, regional cultural organizations sharing their sustainability programs and outcomes from the Resilient Artist Cohort. The second day was held at the Environmental Innovation Center and included artist led workshops, demonstrations from hazardous and solid waste, and an art supply swap. In this calendar year the program will continue a mix of Carbon Neutral Network convenings including site visits to climate and arts spaces, sustainable art workshops, and networking opportunities.
• Community-led and Equity-focused Engagement: The following Climate Smart initiatives prioritize community engagement and co-creation, ensuring that historically underserved communities help shape City policies and programs that impact them:
o Mobility Wallet Pilot Development: Scheduled for summer 2025, this $1.3 million initiative will provide monthly transportation subsidies to 300 low-income, transit-dependent families in East San José for one year and nine months. Funds can be used for regional public transit services, including Amtrak and Greyhound, as well as rideshare apps (Uber and Lyft), e-scooters, and bikeshare programs.
o Microtransit Co-op Feasibility Study: The Department of Transportation is issuing a Request for Proposals to hire a consultant to assess whether

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a City-funded, microtransit program can transition into a worker-owned cooperative, providing a community-driven transit solution. o Measure B Innovative Solutions Grant Submission: The Department of Transportation submitted a $3.5 million grant application to fund a microtransit pilot program in East San José, designed to improve local mobility options based on community-identified needs.
o Shared e-Scooter Program: As a key component of the City’s micromobility network, the shared e-scooter program facilitates approximately 450,000 trips annually, with strong usage among students as a last-mile transit solution. Since fall 2024, Spin has operated as the sole provider, managing a fleet of 250 to 1,500 e-scooters depending on the season, with each device averaging 1.2 trips per vehicle per day. The City has transitioned to a two-year permit cycle to maximize ridership while ensuring a tidy public right-of-way and equitable access to micromobility services.
• Climate Smart Challenge: Environmental Services Department staff continue to promote the City’s Climate Smart Challenge platform
(www.climatesmartsjchallenge.org), which currently has 1,371 users, an increase of 66 San José residents from the previous reporting period. Participants have completed over 4,400 climate actions and committed to an additional 914 actions that have resulted in $136,564 saved, 375 tons of CO2 avoided, and 620,663 gallons of water saved. Staff are currently implementing the third cohort of GoGreen Teams, a team-based engagement program using the platform to empower residents with the knowledge and resources to tackle climate solutions and build community resilience. Staff have made the platform content available in Spanish and Vietnamese and began work on a Mandarin translation to improve equitable access to the diverse set of languages spoken in San José. • Social Media: City staff deployed social media campaigns and shared 55 posts on the Environmental Services Department’s and SJCE’s Facebook, Instagram, X (formerly Twitter), and LinkedIn platforms to highlight program initiatives. To reach diverse communities, City staff also ran a Univision ad for Spanish speakers and various trilingual Google and Facebook ads.

Climate Smart Program and Policy Updates

Below are Climate Smart program and policy highlights from the September 2024 through February 2025 reporting period, grouped within the four key strategies in the Pathway to Carbon Neutrality by 2030, the City’s municipal operations initiatives, or the City’s climate adaptation and resiliency initiatives. T

Power Our Community with 100 percent Carbon-neutral Electricity

Carbon Neutral Power

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In full operation since February 2019, SJCE now serves about 350,000 homes and businesses. SJCE’s default GreenSource service is 62 percent renewable, and its TotalGreen service is 100 percent renewable. SJCE is working towards achieving carbon neutrality by 2030. Approximately 1,600 residential and commercial customers have upgraded to TotalGreen. SJCE maintains a 97 percent participation rate, which means only 3 percent of customers have opted out of SJCE to receive full service from PG&E.

To date, SJCE has contracted for over 1 gigawatt of new renewable energy and storage resources, including wind, solar, geothermal, solar plus storage, and long-duration storage. SJCE has contracted for these resources at cost-effective prices through long- term power purchase agreements, helping it provide competitive, stable rates.

Switch Our Appliances from Fossil Fuels to Electric

Electric Homes San José
The Environmental Services Department introduced the Electric Homes San José incentive program on April 22, 2024, and closed the program in December 2024. The program resulted in over $254,000 in reserved incentives for 56 project sites, with 28 percent of funds dedicated for equity communities. This funding covered 162 total project measures, including 65 heat pump HVAC systems and nine heat pump water heaters. Out of the 56 project sites, 53 were single-family households and three were multi-family properties. As of December 2024, the City began offering new building electrification incentives through SJCE’s EcoHome Rebate program (detailed below).

EcoHome Rebate, Payment Plan, and Contractor Network
In December 2024, SJCE launched two programs to incentivize residential customers to install heat pumps: EcoHome Rebate and Payment Plan. EcoHome Rebate (https://sanjosecleanenergy.org/ecohome-rebate/) offers rebates on heat pump water heaters, heat pump HVACs, attic insulation, and wiring and panel upgrades. As of late February, more than 325 customers have reserved or received $1.2 million in rebates.

Approximately one quarter of rebate funding has been issued to customers in environmental justice communities, who receive higher rebates. Residential customers can also qualify for EcoHome Payment Plan (https://sanjosecleanenergy.org/ecohome- payment-plan/) to receive zero-interest on-bill financing of up to $5,000 over loan terms of two, three, or five years. SJCE has approved 14 payment plans totaling $70,000.

SJCE also created the EcoHome Network (https://sanjosecleanenergy.org/ecohome- network/) to connect customers with contractors willing and able to complete their building electrification project and cultivate relationships with contractors. Contractors who have completed two or more EcoHome Rebate projects or have completed the program requirements to become eligible contractors for the EcoHome Payment Plan can become part of the EcoHome Network and listed on the SJCE website.

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The Energy Department continues to receive free technical assistance from the American Council for an Energy Efficiency Economy to increase renter participation in electrification and energy efficiency programs, engage landlords and tenants, and develop renter protection policies for future energy efficiency and electrification programs.

Energy Efficiency Programs
At the end of 2024, SJCE sunset its energy efficiency programs, the Home Appliance Savings Program and Energy Efficient Business Program. The programs were funded by external funding sources and resulted in lifetime customer savings of nearly $11 million, more than 18,000 metric tons of CO2 avoided, and 3,500 megawatt-hours of annual electricity savings over the lifetimes of the energy-saving equipment – equal to the annual usage of about 720 homes. The Home Appliance Savings Program offered discounts on energy-saving appliances and free devices to geographic- and income- qualified customers. Customers purchased 281 appliances and received 140 smart power strips, 352 smart thermostats, 351 portable induction tops, and 213 low-flow showerheads. The Energy Efficient Business Program provided technical assistance and rebates for HVAC and refrigeration equipment and served 778 businesses.

Building Electrification Workforce Development
The Energy Department finished a consultant study and is interviewing labor stakeholders to understand how the City can support the building electrification workforce and the creation of high road jobs.1 Energy Department staff continue to attend the High Road Training Partnership member meetings and are collaborating with IBEW and other unions, labor groups, contractor groups, and the City’s Office of Economic Development and Cultural Affairs to inform the design of workforce development programs, to be brought to the City Council for consideration later in FY 2024-2025.

Zonal Electrification
Zonal electrification involves decommissioning the gas infrastructure system serving two or more buildings and electrifying appliances instead. Senate Bill 1221 (Min, 2024) requires gas corporations by January 1, 2026, to designate priority neighborhood decarbonization zones based on the cost-effectiveness of electrification versus gas distribution line replacement costs. It also directs the California Public Utilities Commission to develop a program with 30 pilot project sites statewide that facilitates the cost-effective decarbonization of priority neighborhood decarbonization zones. Energy Department and Climate Smart staff have engaged Pacific Gas & Electric Company (PG&E) to review San José’s priority neighborhood decarbonization zones as designated by PG&E and collaborate with PG&E to ensure a zone in San José can be 1 According to the California Workforce Development Board, “high road employers pay family supporting wages, compete based on the quality of their services and products, and engage workers and their representatives in the project of building skills and competitiveness.” High Road Overview, June 2018.

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one of the 30 pilot project sites, if desired by affected residents. Currently, zonal decarbonization is already pursued and paid for by PG&E if full electrification costs less than gas distribution line upgrades and 100 percent of affected customers agree to it.

Staff is engaged with PG&E to learn more about upcoming opportunities based on gas line replacement schedules, and to understand how to best implement the pilot strategy in San José.

Energy & Water Building Performance Ordinance
2024 marked the second year of the “Beyond Benchmarking” phase of the City’s Energy and Water Building Performance Ordinance (“Building Performance Ordinance”).

Beyond Benchmarking applies to a subset of covered buildings every 5 years and requires those buildings to meet energy and water efficiency standards or take specified improvement actions. The 2024 Beyond Benchmarking cohort was approximately 380 of the 1,790 covered buildings under the Building Performance Ordinance. The 2025 reporting season is set to start March 1, 2025, with approximately 380 buildings required to comply with Beyond Benchmarking. Table 2 provides an overview of the program compliance rates over time.

Table 2. Building Performance Ordinance Compliance Rates Compliance
Year
Annual Benchmarking Beyond Benchmarking
2019 43% N/A
2020 28% N/A
2021 68% N/A
2022 73% N/A
2023 88% 73%
2024 85% 59% Error! Bookmark not
defined.

Based on Building Performance Ordinance reporting by covered buildings:
• 61 percent of covered properties under the Building Performance Ordinance have decreased their water use intensity (gallons/ square foot) since the first year they submitted a benchmarking report.
• In 2023 and 2024, more covered properties met the energy and water efficiency standards than had to do improvement actions for Beyond Benchmarking compliance.
• Since 2020, the amount of “incomplete” submitted benchmarking reports has gone down each year, from 23 percent of all submissions in 2020 to 0.7 percent of all submissions in 2024. Environmental Services Department staff continues improvements and dedication to effective outreach and customer service for covered properties.

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From October through December 2024, the BPO team conducted five stakeholder engagement webinars to gather input on potential updates to the Building Performance Ordinance and is evaluating the feedback received to determine next steps.

Reduce the Miles We Travel in our Vehicles by at least 20 Percent

Department of Transportation staff continues to work with Valley Transportation Authority to improve transit reliability and ridership through Transit Signal Priority upgrades that reduce bus delays and improve travel times. Additionally, City staff are also working with Valley Transportation Authority to improve bus stop amenities, including shelters and real-time arrival displays, to make transit more convenient. These efforts, along with the projects below, support the goal of reducing vehicle miles traveled and advancing sustainable transportation options.

Better Bike Plan 2025
The City expanded its bikeway network under the Better Bike Plan 2025, installing 7.4 miles of new on-street bikeways and upgrading 32.8 miles, with most work completed in fall 2024. This included 29.7 miles of new and upgraded protected bikeways, more than doubling the City's total protected mileage, and 4.4 miles of new and upgraded bike boulevards—both key to the planned low-stress network. The on-street bikeway system now spans 484 miles, integrating with 66 miles of off-street trails for a 550-mile usable network. Much of this work was funded through one-time grants and completion of backlog pavement maintenance projects.

Bike Share Service Expansion
Department of Transportation staff continue to work closely with the Metropolitan Transportation Commission and Lyft to expand bikeshare access in equity priority communities. The Metropolitan Transportation Commission’s and Lyft’s investments, combined with a grant the City secured from the California Energy Commission’s Clean Mobility Options program, will result in the deployment of 500 new e-bikes and 32 new stations in East San José. The grant will also support extensive community programming to encourage bike usage. The City had also secured a grant from U.S.

Environmental Protection Agency that would have funded another six stations and 75 bikes. However, that funding is uncertain as a result of the federal administration’s grant freeze and major staff cuts. Department of Transportation staff also launched a community engagement studio class with Communiversity and San José State University that will allow students and residents to co-design mobility solutions and shape bikeshare expansion. These efforts will continue to improve station coverage and accessibility in underserved areas across San José.

Micro-Mobility Hubs on San Fernando Street

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Department of Transportation staff are participating in the Metropolitan Transportation Commission’s Technical Assistance Program for the San José Mobility Hubs Project.

During the reporting period, staff worked on identifying relevant data collection methods and before and after evaluation metrics to support the project development and goals.

Multimodal Transportation Plans
The Connect North San José – Multimodal Transportation Improvement Plan remains on schedule. During this reporting period, staff collaborated with local stakeholders to identify 17 major corridor projects and develop a toolbox of potential improvements. A detailed study of North First Street explored design options to enhance transit operations and improve safety for walking, rolling, and biking. Proposed improvements include Class IV bikeways, protected intersections, enhanced trail connections, and new public spaces. The Department of Transportation held a community workshop in February 2025 to discuss potential transportation improvements.

SMART Curbs: Curb Digitization and Curb Management Pilots Department of Transportation staff launched a Curb Management Pilot to digitize and assess downtown curb spaces, aiming to improve safety, efficiency, and multimodal access while supporting the City’s climate goals. Funded by a nearly $2 million U.S.

Department of Transportation Strengthening Mobility and Revolutionizing Transportation grant, the pilot uses LiDAR technology to create a digital curb inventory and has deployed 150 cameras to track vehicle dwell times, turnover rates, loading activity, and other uses. The City aims to integrate this data into planning efforts to better manage curb demand and address community needs. Running from August 2024 to June 2025, the pilot’s next phase includes a Metropolitan Transportation Commission grant application to reallocate curb space based on utilization data, introduce advanced cameras to track bicycle and pedestrian activity, and develop a public-facing data platform.

Department of Transportation Data Dashboard
The Department of Transportation has acquired a new big data subscription to enhance tracking of Climate Smart metrics related to vehicle miles traveled. This tool provides real-time and historical data on travel patterns, enabling more accurate assessments of transportation trends, mode shifts, and emissions impacts. It will improve tracking of goals related to vehicle miles traveled reduction and multimodal transportation access, supporting data-driven strategies to advance Climate Smart objectives. The data will also inform policy decisions, project evaluations, and targeted strategies to reduce vehicle miles traveled and promote sustainable transportation options.

Move to Zero Emission Vehicles
California Electric Vehicle Infrastructure Project
The California Electric Vehicle Infrastructure Project is a $14 million rebate program for Level 2 and Direct Current Fast Charging infrastructure co-funded by SJCE and the

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California Energy Commission. As of February 2025, 197 Level 2 and 32 direct current fast chargers funded by the program are operational. The program is expected to conclude in Q4 2025, at which point any unspent funds committed by the City would be returned to the City. Program participants have reserved and/or received approximately $8 million.

Multifamily EV Charger Incentive Pilot
In October 2024, SJCE launched a pilot to provide incentives to multifamily property owners to cover the costs associated with installing Level 1 and low-power Level 2 EV charger outlets, Level 2 charging stations, and main panel upgrades. The pilot is designed to complement other EV charging infrastructure programs, such as the PG&E Multifamily and Small Business Direct Install Program, to share costs and drive participation from multifamily properties in low-income and pollution-burdened communities. The pilot has received applications to install 78 charging ports at 10 multifamily properties.

Fast Charging Hubs Pilot
In November 2022, the City Council approved SJCE to install direct current fast charging hubs in San José’s environmental justice communities to increase access to affordable and reliable EV charging. Each hub will contain at least 10 charging ports and run for 10 years. SJCE will control variable retail pricing to encourage middle-of- the-day charging. In February 2025, staff re-published a Request for Offers for a vendor to build, own, and operate four to seven hubs at community centers and libraries through a pay-for-performance agreement.

EV Chargers in City Facilities
In January 2025, the City was awarded $6 million to install over 100 EV charging ports for public and fleet use at libraries and community centers in East San José; however, these federal funds are not yet secured. To secure additional funding, Department of Transportation staff have applied for the Metropolitan Transportation Commission EV Infrastructure Program to install 64 EV charging ports and 30 e-bike charging ports at select priority libraries and community centers in East San José.

Leading by Example - Climate Smart Municipal Operations Updates

The City aims to lead by example in its efforts to power its owned and operated buildings with 100 percent carbon-neutral electricity, switch appliances from fossil fuel to electric, reduce miles traveled in vehicles, and move to zero emission vehicles. The Public Works Department provides updates on the City’s municipal facilities biannually during its Deferred Maintenance Backlog Report. The Departments of Energy, Public Works, and Transportation provide updates on the City’s fleet electrification and installation of accompanying EV charging infrastructure annually to the Transportation

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and Environment Committee. Below are highlights on activities related to municipal operations and buildings during the reporting period.

Municipal Building Electrification
In September 2024, Public Works welcomed its first two Sustainability Service Corps AmeriCorps Fellows who are assisting staff with developing a Decarbonization Database for roadmapping electrification and implementing sustainability community engagement and workforce development for municipal buildings. In November 2024, Public Works engaged the BayREN Energy Concierge Service and plans to apply to the BayREN Decarbonization Showcase and Energy Roadmapping Services in the coming reporting period. Since January 2024, staff are also leading citywide partners to complete the Local Infrastructure Hub’s Grant Implementation, Compliance, and Management and Developing Clean Energy Projects Bootcamps, focused on educating municipal staff on best practices for federal grant management and navigating remaining Inflation Reduction Act energy tax credits.

In addition, the San José Mineta International Airport (“Airport”) completed the Airport- wide Electrical Utility Study in January 2025. The study included the assessment of the existing electrical demand of the Airport, capacity of existing infrastructure to handle future loads, and calculated the projected future electrical demand based on the Airport’s planned capital improvement projects and associated required infrastructure upgrades. In addition, the Study included a high-level feasibility assessment to potentially transition the current Central Utility Plant from natural gas to electricity. The Study also contemplated the potential to install microgrids at the Airport to ensure a more resilient electrical system in the future.

Climate Adaptation and Resiliency

Climate Adaptation and Resilience Plan
Environmental Services Department staff are developing a Climate Adaptation and Resilience Plan aimed at addressing San José’s climate vulnerabilities and enhancing resilience against the impacts of future climate change, with a focus on critical infrastructure and vulnerable communities. During the reporting period, City staff worked with the project consultant to complete a climate vulnerability assessment and developing the guidance and framework documents for the Climate Adaptation and Resilience Plan. A key priority during the reporting period has been community engagement, with efforts such as listening sessions with the Youth Commission and Alviso Neighborhood Group. These and upcoming outreach efforts will help shape the plan, with a public review draft scheduled for release in July 2025 and the final plan anticipated for City Council consideration in early 2026.

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Looking Ahead

City staff plan to complete the following items in the next reporting period (March – August 2025):

• Launch a telematics-based managed charging program2 for SJCE residential customers with EVs;
• Launch an incentive program for homes to install battery energy storage systems;
• Finalize a fleet electrification master plan for the City of San José; • Execute consultant agreement for development of a publicly-accessible decision support system that informs the priorities of the City's transportation investments, monitors citywide progress towards transportation goals, and communicates project status;
• Finalize the new Climate Smart Zero Waste Element;
• Finalize Climate Advisory Commission workplan for FY 2025-2026; • Release of the Climate Adaptation and Resilience Plan Public Review Draft; • Finalize the City's 2023 communitywide GHG inventory; • Host an inaugural Climate Smart training session for City leadership staff; and • Submit applications for the BayREN Decarbonization Showcase and Energy Roadmapping Services.

Staff also expects to bring the following Climate Smart items to City Council:
• SJCE Workforce Development Programs (Spring 2025), and • Climate Smart Plan Administrative Update (Summer 2025).

While the City is continuing to make progress towards its City Council-approved climate goals, continued City investment and focus is necessary to reach those goals.

Racial Equity Impact Analysis
Historically marginalized communities of San José are already experiencing and are more likely to be burdened by the impacts of climate change while also being the least able to, due to financial and other constraints, take advantage of climate initiatives which can bring significant health and financial benefits with them.

Many Climate Smart initiatives are leading in the effort to develop City policies and programs more equitably by using a community co-creation approach, by employing

2 A telematics-based managed charging program utilizes an electric vehicle’s internal communications system to wirelessly adjust when the vehicle charges.

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outreach tactics to better reach historically marginalized communities, and by ensuring a portion of program benefits will go to these communities.

Climate Smart San José Analysis
Climate Smart initiatives detailed in this memorandum are helping to advance several City climate goals by facilitating:
• the reduction of energy or water use consumption, or increases in demand for renewable energy,
• the energy and water efficiency of homes and commercial buildings, and • the choice of mobility choices other than single-occupancy, gas-powered vehicles.

EVALUATION AND FOLLOW-UP
Staff will provide progress updates to the Transportation and Environment Committee and City Council on Climate Smart activities on a semi-annual basis.

COORDINATION
This memorandum has been coordinated with the City Attorney's Office, City Manager’s Budget Office, Office of Economic Development and Cultural Affairs, and the Departments of Airport, Energy, Public Works, and Transportation.

PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the April 22, 2025, City Council meeting.

COMMISSION RECOMMENDATION AND INPUT
The Climate Advisory Commission accepts staff's Climate Smart Semi-Annual Update as presented at the March 13, 2025, Special Session.

CEQA
Not a Project, File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action.

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PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution. /s/
Lori Mitchell
Acting Director, Environmental Services
For questions, please contact Julie Benabente, Deputy Director, Environmental Services at [email protected] or (408) 975-2537.

ATTACHMENT
Attachment A – Climate Smart San José Semi-Annual Update Spring 2025 Highlights (English/ Spanish/ Vietnamese)

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