ENVIRONMENTAL AND UTILITY
SERVICES
CITY SERVICE AREA
2026-2027 PROPOSED
OPERATING BUDGETOUTCOMES:
• 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
ENVIRONMENTAL AND UTILITY SERVICES
Environmental Services
• Potable Water Delivery
• Recycled Water Management
• Recycling and Garbage Services
• Stormwater Management
• Utility Regulatory Advocacy and
Compliance
• Wastewater Management
• Providing Clean Energy to the Community
• Energy Customer Support
• Energy Community Programming
• Sanitary Sewer
Maintenance
• Storm Sewer Maintenance
2026-2027 Budget Study Sessions Slide 2
Core Services
TransportationEnergy
ENVIRONMENTAL AND UTILITY SERVICES Program Samples*
Slide 3
• Municipal Water System Operations and
Maintenance
• South Bay Water Recycling Operationsand
Maintenance
• Residential Solid Waste Collection Services
• Commercial Solid Waste Collection Services
• Stormwater Policy and Compliance
• San José-Santa Clara Treatment Plant
Operations and Maintenance
• Laboratory Services
• Regulatory Compliance
• Purified Water
Energy
• Renewable and Green House Gas-Free
Energy Supply
• Conventional Energy Supply
• Regulatory Compliance
• Energy Risk Management
• Local Energy Programs
• Marketing and Public Affairs
• Climate Smart
Transportation
• Sanitary Sewer
System Maintenance
• Storm Sewer Operation
and Maintenance
• Street Sweeping
* For a complete list of programs, please refer to the 2026-2027 Proposed Operating Budget 2026-2027 Budget Study Sessions
Environmental Services
0%
20%
40%
60%
80%
100%
FY22-23
Actual
FY23-24
Actual
FY24-25
Actual
FY25-26
Target
FY25-26
Estimate
FY26-27
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) 96% 96%
84%
93% 89% 89%
0%
20%
40%
60%
80%
100%
FY22-23
Actual
FY23-24
Actual
FY24-25
Actual
FY25-26
Target
FY25-26
Estimate
FY26-27
Target
% of San Jose Clean Energy Power that is renewable
and carbon-free (Energy)
% Renewable % Carbon-Free
2.0 1.4
1.6 1.9
0.0 1.0
2.0 3.0
FY22-23 FY23-24 FY24-25 FY25-26 FY26-27
Not to exceed sanitary sewer overflows per 100 miles
of sanitary sewer mains (annualized) (DOT)
Target maximum Actual Estimate
ENVIRONMENTAL AND UTILITY SERVICES
PERFORMANCE MEASURE DASHBOARD
Wastewater Discharge Limit Recycled Water Delivered Operational Utility Assets Sanitary Sewer Overflow Limit San José Clean Energy Power Mix Landfill Waste Diversion Slide 4
96.1 108.4 105.7 104.4
0 50
100
150
FY22-23 FY23-24 FY24-25 FY25-26 FY26-27
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
12.0 11.111.2 11.9 11.8 11.1
0 5
10 15
FY22-23 FY23-24 FY24-25 FY25-26 FY26-27
Average millions of gallons per day of recycled water
delivered by South Bay Water Recycling (ESD)
Estimate Target Actual
0%
20%
40%
60%
80%
100%
FY22-23
Actual
FY23-24
Actual
FY24-25
Actual
FY25-26
Target
FY25-26
Estimate
FY26-27
Target
% of utility assets that are online and functional (ESD) Regional Wastewater Facility Storm Sewer Infrastructure Sanitary Sewer Infrastructure SJ Municipal Water
2026-2027 Budget Study Sessions
Slide 5
ENVIRONMENTAL AND UTILITY SERVICES Budget Summary
Department
2025-2026
Adopted
2026-2027
Forecast
2026-2027
Proposed
% Change
from Forecast
Environmental Services $506,463,022 $514,038,607 $521,180,263 1.4% Energy $473,431,151 $368,330,316 $369,210,967 0.2%
Transportation* $56,355,819 $49,050,897 $49,579,297 1.1% CSA Total $1,036,229,992 $931,419,820 $939,970,527 0.9% Positions 812.99 812.49 818.49 0.7%
* The Department of Transportation has additional funding budgeted in the Transportation & Aviation Services City Service Area.
ENVIRONMENTAL AND UTILITY SERVICES
2026-2027 PRIORITIES / SERVICE DELIVERY
Slide 6
CSA NAME 6 2022-2023 Budget Study Sessions
• Build, operate, and maintain the City’s wastewater, recycled water, and potable water utility infrastructure to ensure system reliability and public health and safety.
• Promote the health of the environment and South Bay watershed through the collection, treatment, and management of wastewater and stormwater runoff.
• Oversee programs to collect, process, recycle, compost, and dispose of solid waste to maximize diversion from landfills and protect public health, safety, and the environment.
• Reduce the City’s environmental footprint through energy efficiency, waste reduction, and environmentally preferable purchases. • Continue to provide residents and businesses with renewable energy options at competitive rates.
2026-2027 Budget Study Sessions
Slide 7
ENVIRONMENTAL AND UTILITY SERVICES Proposed Budget Actions Proposal Title Amount
Previously
Funded
One-Time?
Sanitary Sewer Cost of Service Study $575,000 N
Fire Stations and Former Fire Training Center PFAS Investigation and Clean-up $350,000 N
Solid Waste Enforcement Program Staffing (Continuation) $179,477 Y Enhanced Street Sweeping Along On-Land Visual Trash
Assessment Sites (Pilot Project) $341,400 N
Strategic Load Management Staffing $300,186 Y
Energy Hedging Program Review (Power Procurement Review) $175,000 N
ENVIRONMENTAL AND UTILITY SERVICES
LOOKING AHEAD
Slide 8
CSA NAME 8 2022-2023 Budget Study Sessions
• Continued 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 treatment plant infrastructure and wastewater treatment process
– The PCIA will increase substantially in 2026, which will have a significantfinancial impact on SJCE
ENVIRONMENTAL AND UTILITY
SERVICES
CITY SERVICE AREA
2026-2027 PROPOSED
OPERATING BUDGETOUTCOMES:
• 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