ENVIRONMENTAL AND UTILITY
SERVICES CITY SERVICE AREA
2025-2026 PROPOSED
OPERATING BUDGET
OUTCOMES:
- Utility services that protect public health and the environment - Affordable, effective utilities with excellent customer care - Sustainable utility systems that meet future needs
- Protected, restored, and maintained environment
Presenter: Jeff Provenzano, Director, Environmental Services Panelists: John Ristow, Director, Transportation
Lori Mitchell, Director, Energy
2025-2026 Budget Study Sessions
Slide 2
ENVIRONMENTAL AND UTILITY SERVICES
• Potable Water Delivery
• Recycled Water Management
• Recycling and Garbage Services
• Stormwater Management
• Wastewater Management
• Utility Regulatory Advocacy and
Compliance
Transportation
Energy
• Providing Clean Energy to the
Community
• Energy Customer Support
• Energy Community
Programming
• Sanitary Sewer Maintenance
• Storm Sewer Maintenance
Core Services
Environmental Services
Slide 3
ENVIRONMENTAL AND UTILITY SERVICES
• Municipal Water SystemOperations
and Maintenance
• South Bay Water Recycling
Operations and Maintenance
• Residential Solid WasteCollection
Services
• Commercial Solid Waste Collection
Services
• Stormwater Policy and Compliance
• San Jose-Santa Clara Treatment Plant
Operations and Maintenance
• Laboratory Services
• Regulatory Compliance
• Purified Water
Energy
Transportation
• Renewable Energy Supply
• Conventional Energy Supply
• Regulatory Compliance
• Risk Management
• Local Energy Programs
• Marketing and Public Affairs
• Climate Smart San Jose
• Sanitary Sewer
System Maintenance
• Storm Sewer Operation
and Maintenance
• Street Sweeping
Program Samples*
* For a complete list of programs, please refer to the 2025-2026 Proposed Operating Budget 2025-2026 Budget Study Sessions
Environmental Services
ENVIRONMENTAL AND UTILITY SERVICES
PERFORMANCE MEASURE DASHBOARD
Slide 4
Enter Graphic for PM Here Enter Graphic for PM Here Enter Graphic for PM Here Enter Graphic for PM Here Enter Graphic for PM Here Enter Graphic for PM Here Wastewater Discharge Limit Recycled Water Delivered Operational Utility Assets Sanitary Sewer Overflows San José Clean Energy Power Mix Landfill Waste Diversion
96.1 108.4 110.2
0 50
100
150
FY22-23 FY23-24 FY24-25 FY25-26
Not to exceed 120 millions of gallons of wastewater
discharged in the Lower South Bay per day during the
dry season (ESD)
Target maximum Actual (unit in MGD) Estimate
11.18 11.88 11.89
12.00 12.00
0 5
10 15
FY22-23 FY23-24 FY24-25 FY25-26
Average millions of gallons per day of recycled water
delivered by South Bay Water Recycling (ESD)
Actual Target Estimate
0%
20%
40%
60%
80%
100%
FY22-23
Actual
FY23-24
Actual
FY24-25
Target
FY24-25
Estimate
FY25-26
Target
% of utility assets that are online and functional (ESD) Regional Wastewater Facility Storm Sewer Infrastructure Sanitary Sewer Infrastructure SJ Municipal Water
South Bay Water Recycling
2.0 1.4 1.4
0.0 1.0
2.0 3.0
FY22-23 FY23-24 FY24-25 FY25-26
Not to exceed sanitary sewer overflows per 100 miles
of sanitary sewer mains (annualized) (DOT)
Target maximum Actual Estimate
96% 96% 100%
81%
93%
0%
20%
40%
60%
80%
100%
FY22-23
Actual
FY23-24
Actual
FY24-25
Target
FY24-25
Estimate
FY25-26
Target
% of San Jose Clean Energy Power that is
renewable and carbon-free (Energy)
% Renewable % Carbon-Free
0%
20%
40%
60%
80%
100%
FY22-23
Actual
FY23-24
Actual
FY24-25
Target
FY24-25
Estimate
FY25-26
Target
% of waste diverted from landfills (State Goal: 50%)
(ESD)
Overall Residential (~55% of waste stream)
Commercial (~20% of waste stream) City Facilities (~5% of waste stream) 2025-2026 Budget Study Sessions
Slide 5
ENVIRONMENTAL AND UTILITY SERVICES Budget Summary
Department
2024-2025
Adopted
2025-2026
Forecast
2025-2026
Proposed
% Change
from Forecast
Environmental
Services $477,301,990 $486,730,910 $502,353,497 3.2%
Transportation* $52,973,633 $47,299,102 $47,505,769 0.4% Energy $528,595,676 $454,616,454 $455,361,151 0.2%
CSA T otal $1,058,871,299 $988,646,466 $1,005,220,417 1.7% Positions 811.99 810.99 812.99 0.2%
* The Transportation Department has additional funding budgeted in the Transportation and Aviation Services City Service Area.
ENVIRONMENTAL AND UTILITY SERVICES
2025-2026 PRIORITIES / SERVICE DELIVERY
Slide 6
CSA NAME 6 2022-2023 Budget Study Sessions
Lead on climate action through policies, measures,
and programs that reduce greenhouse gases, provide clean power, and ensure an adequate long-term water supply
Manage the City’s wastewater, stormwater, recycled water, and potable water utility infrastructure in compliance with regulatory requirements
Manage programs to collect, process, recycle, compost, and dispose of solid waste to maximize diversion from landfills at competitive rates
Provide residents and businesses with carbon-free energy options at competitive rates
2025-2026 Budget Study Sessions
Slide 7
ENVIRONMENTAL AND UTILITY SERVICES Proposed Budget Actions Proposal Title Amount
Previously
Funded
One-Time?
Dewatering Facility Electrical Costs $7,500,000
Chemical Costs Increase $1,864,000
Contamination and Recycling Tagging Project $461,171 Y
Storm Drain Inlet Marking $246,500*
Energy Regulatory Policy and Compliance
Staffing $283, 427
Energy Risk Management Staffing $164, 348
* The sum of the Transportation Department and the Environmental Services Department’s Storm Drain Inlet Marking proposals.
ENVIRONMENTAL AND UTILITY SERVICES
LOOKING AHEAD
Slide 8
CSA NAME 8 2022-2023 Budget Study Sessions
• Focus on delivering exceptional, cost-effective utilities • Compliance with updated regulations for the sanitary and storm sewer collection systems, potable and recycled water, energy, and Regional Wastewater Facility – Stormwater NPDES Permit will continue to drive multi-departmental effort to address trash and illicit discharges into receiving waterways
– Nutrients Permit will require reduced ammonia discharges and updates to infrastructure and treatment process
– Pending regulations on Constituents of Emerging Concern (CECs) including PFAS – The PUC has reopened the PCIA rulemaking proceedings, which may have a significant financial impact on SJCE
ENVIRONMENTAL AND UTILITY
SERVICES (EUS) CITY SERVICE AREA
2025-2026 PROPOSED
OPERATING BUDGET
OUTCOMES:
- Utility services that protect public health and the environment - Affordable, effective utilities with excellent customer care - Sustainable utility systems that meet future needs
- Protected, restored, and maintained environment
Presenter: Jeff Provenzano, Director, Environmental Services Panelists: John Ristow, Director, Transportation
Lori Mitchell, Director, Energy