5/9/23 Hem 6
City Council
Item #6 RTC 23-556
Waive First Reading and take Action
on the Introduction of an Ordinance
to Amend Zoning Code Section
18.60.050 to Permit Fuel Cells and
Photovoltaic Panels as an Allowable
1852 Use without Need for a Use Permit &
THE MISSION CIT Require Other Electric Power Plants
to Adhere to State of California
Emissions Requirements in MP, ML,
MH, B, and PD Zoning Districts.
May 9, 2023
1 City of
Santa Clara
Zoning Code Amendment
Background: Current Zoning Code Sections
• Defines "Electric Power Plants"
• Electric power plants are potentially permitted in Four Zoning Districts, with a Conditional Use Permit (CUP)
Photovoltaic (PV) panels & fuel cells with a larger capacity meet the Zoning Code definition of electric power plant, require a CUI 2 2
POST MEETING MATERIAL
1 City of
Santa Clara
The Centerof What's Porsible
Zoning Code Amendment
Proposal: Photovoltaics & Fuel Cells as Permitted Use
• The proposed Zoning Code amendment would remove the need for a CUP for PV panels & fuel cells, allowing them by-right.
• For PVs: proposal aligns with State legislation recognizing PVs as a clean energy source and a statutory CEQA exemption for PV installation. • For Fuel Cells: proposal allows this alternative energy technology to be streamlined. - Standard practice for Fuel Cells to be Permitted Use. - Satisfies a settlement with Bloom Energy:
• Bloom agreed to utilize renewable energy sources and/or offsets in its fuel cells (and provide City on-going evidence).
• City agreed to introduce ordinance removing CUP requirement for fuel cells; City action to remove such requirements is a condition to Bloom's obligations under 3 settlement agreement.
3 City of
Santa Clara
The Center of What's Possible
Zoning Code Amendment
Proposal: New Renewable Energy Requirement
• All other electric power plants shall not exceed state of California emissions requirements set by the CA Renewable Portfolios Standard Program.
• Emissions requirements can be met in whole or in part by purchasing renewable energy credits, or offsets that meet California Air Resources Board (CARB) requirements.
• If targets amended by legislation or regulatory changes become more stringent, the more stringent requirements shall be applicable. 4 4
2 City of
Santa Clara
The Center of What's Possible
Zoning Code Amendment
Proposal: Consistency with CAP & General Plan
• Proposed Amendment is consistent with City's:
- Climate Action Plan's target to achieve net carbon neutrality by 2045 - General Plan policy 5.10.3-P1 "Promote the use of renewable energy resources, conservation and recycling programs"
With the commitment to utilize renewable fuel and offsets, Bloom's fuel cells would also be carbon neutral by 2045 and reach interim targets starting in 2025.
5 5
City of
Santa Clara
Zoning Code Amendment
Planning Commission
Recommended adoption of the draft ordinance (4-1-1).
• Made a second recommendation to require the evaluation of other environmental resources to validate and mitigate any potential impacts resulting from fuel cell projects (biological resources, green house gas emissions, aesthetics, land use, cultural resources, hazards and hazardous materials, and mineral resources, tribal cultural resources, air quality, geology, noise, and recreational and utility services). The second motion passed unanimously (5-0-1). 6 6
3 City of
Santa Clara
The Centerof What's Possible
Zoning Code Amendment
Environmental Analysis
• Fuel cells are unlikely to present impacts to CEQA resources areas. - They provide power to existing commercial or industrial facilities and do not alter the existing uses.
- Construction of fuel cells also involves minimal/no soil excavation thereby avoiding any potential impacts to biological resources, cultural and tribal resources, geology, hydrology, or mineral resources.
Bay Area Air Quality Management District exempts certified fuel cells. 7 City of
Santa Clara
The Center of What's Possible
Zoning Code Amendment
Recommendation
Waive the First Reading and Introduce an Ordinance to Amend Zoning Code Section 18.60.050 to Permit Fuel Cells and Photovoltaic Panels as an Allowable Use without Need for a Use Permit, as well as Require Other Electric Power Plants to Adhere to State of California Emissions Requirements in MP - Planned Industrial, ML - Light Industrial, MH - Heavy Industrial, B - Public, Quasi-Public, and Public Park or Recreation, and PD - Planned Development Zoning Districts
8 8
4 City Council
Item #6 RTC 23-556
ATTA CLARA CARE Waive First Reading and take Action
on the Introduction of an Ordinance
to Amend Zoning Code Section
IA 18.60.050 to Permit Fuel Cells and
Photovoltaic Panels as an Allowable
1852 Use without Need for a Use Permit &
THE MISSION CIT Require Other Electric Power Plants
to Adhere to State of California
Emissions Requirements in MP, ML,
MH, B, and PD Zoning Districts.
May 9, 2023
9 From: Andreas Bechtolsheim
To:
Subject: Letter of Support for City Meeting Agenda Item 6 Date: Tuesday, May 9, 2023 11:56:16 AM
Attachments: AristaLetterOfSupport.pdf
Please add this letter of support to the agenda for the city council meeting this evening, agenda item 6.
Thank you
Andreas Bechtolsheim
Chief Development Officer
Arista Networks Inc
o. IVEETING MATERIAL
ARISTA Arista Networks Inc
5453 Great America Parkway
Santa Clara, CA 95054
May 9, 2023
Dear Mayor Gillmor and esteemed City Councilmembers:
Arista Networks is a rapidly growing cloud networking company that is part of the S&P500 index.
We have been in Santa Clara since 2011 and our current headquarters are at 5453 Great America Pkwy.
We are now planning to construct a new 240,000 SF headquarter and engineering building on land we purchased at 5200 Patrick Henry Drive. We submitted our first set of plans to the planning commission last fall and were about to make our second submission when we learned that we cannot get the power to occupy the building from Silicon Valley Power because there is no more power available in the city.
We are now investigating the use of Bloom Energy Servers to enable us to occupy the building when it is completed in 2025. Using fuel cells is not our first choice, we prefer to get the electricity we need from Silicon Valley Power, but we don't see any alternative except to abandon this project and move out of the city, which we really don't want to do.
We therefore would support the Planning Commission's recommendation that the Council move forward with adoption of the proposed ordinance allowing for the increased deployment of solar PV and fuel cells to help maintain grid stability and reduce emissions.
We look forward to a future where we can obtain 100% green electricity from Silicon Valley Power, however based on the current schedule of Silicon Valley Power grid development this is many years in the future and we cannot wait for that.
Sincerely,
Xbecklen
Andreas Bechtolsheim
Chief Development Officer
Arista Networks Inc