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RTC 23-556 from May 9, 2023 Council Meeting

City Council and Authorities Concurrent
May 23, 2023

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RTC 23-556 from May 9, 2023 Council Meeting
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May 23, 2023
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City Council and Authorities Concurrent
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-556 Agenda Date: 5/9/2023

REPORT TO COUNCIL

SUBJECT
Public Hearing: 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 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

COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development

BACKGROUND
Title 18 of the City Code, referred to as the Zoning Code, establishes definitions and regulations for land uses within the City of Santa Clara.

Electric Power Plants are defined in section 18.06.010 of the Zoning Code as: “all equipment, fixtures, and personal property operated or maintained in connection with the production of electricity using any source of thermal, steam, wind, or solar energy with a generating capacity of more than five hundred (500) kilowatts and less than fifty (50) megawatts, including all conduits, ducts, or other devices, materials, apparatus, or property used or to be used for the transmission of the electricity so produced.”
Section 18.60.50 of the Zoning Code identifies electric power plants as a potentially permitted use, subject to the obtainment of a Use Permit, in the following zoning districts MP - Planned Industrial, ML - Light Industrial, MH - Heavy Industrial, and B - Public, Quasi-Public, and Public Park or Recreation.

Photovoltaic panels and fuel cells with a larger capacity for electricity production meet the Zoning Code definition of electric power plant and thus are subject to the requirement of obtaining a Conditional Use Permit (CUP) in accordance with Zoning Code Section 18.60.050. A CUP is a discretionary action requiring CEQA clearance.

Most recently the Planning Commission approved a CUP for photovoltaic panels on August 24, 2022 (PLN2022-00189) to allow photovoltaic panels that will generate 1,388kW at Santa Clara University, and the Commission approved the use of a statutory exemption to CEQA for solar energy projects.

For fuel cells, the Planning Commission has yet to review any CUP applications, but three applications are currently pending with the City.

Bloom Energy, Inc. is a manufacturer of fuel cells which utilize methane as part of their production process. In 2019, Bloom Energy filed a legal challenge to the imposition of a CUP, and the City of Santa Clara Printed on 5/5/2023Page 1 of 5
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23-556 Agenda Date: 5/9/2023
associated CEQA review required, for its proposed fuel cell projects at three locations in the City. On March 21, 2023, the City Council approved the terms for a settlement, pursuant to which Bloom would agree to utilize renewable energy sources and/or offsets in their operations of all pending and future Bloom fuel cell projects in Santa Clara, and the City would agree to introduce an ordinance removing the CUP requirement for fuel cells. A final version of the settlement agreement was executed on April 21, 2023. Although the City Council reserves its discretion to approve or disapprove the proposed ordinance, City Council approval of he language related to fuel cells in the proposed ordinance would satisfy a condition of this settlement agreement with Bloom.

The proposed ordinance would streamline the process for constructing fuel cell and photovoltaic panels, allowing them to be permitted in the referenced zoning districts without the need to obtain a Use Permit. As a ministerial approval, applications to install fuel cells would no longer need to obtain CEQA clearance prior to installation.

In addition to the provisions regarding fuel cells and photovoltaics, consistent with City Council priorities and State of California emissions requirements, the proposed ordinance, would also impose a new renewable energy requirement on new power plants. The ordinance would also expressly authorize power plants to be constructed in Planned Development (PD) zoning districts.

The Planning Commission staff report (Attachment # 2) provides an analysis of the areas of alignment with the proposed ordinance and the City’s Climate Action Plan, General Plan, and State law.

DISCUSSION
The proposed Zoning Code amendment would streamline the process for constructing fuel cell and photovoltaic panels, allowing them to be permitted in the referenced zoning districts without the need to obtain a Use Permit. As a ministerial approval, applications to install fuel cells would no longer need to obtain CEQA clearance prior to installation.

The proposed Zoning Code amendment would align the Code with State legislation recognizing that photovoltaic technology has been documented as a clean energy source. California Senate Bill (SB) 226 (2011) added Section 21080.35 to the Public Resources Code, establishing a statutory exemption to the California Environmental Quality Act (CEQA) for solar projects installed on existing building rooftops and in parking lots. To align with this information about emissions standards being met by both fuel cells and photovoltaics, the proposed Zoning Code Amendment would permit these uses without the need to obtain a Use Permit from the City.

For other power generation technologies that meet the City’s definition of an Electric Power Plant, the proposed Zoning Code amendment would maintain the City’s current requirement to obtain a Use Permit. However, consistent with City Council priorities, the proposed ordinance would also impose a new renewable energy requirement on such new power plants to adhere to state of California emissions requirements. The ordinance would also expressly authorize power plants to be constructed in Planned Development (PD) zoning districts.

The proposed amendment to the Zoning Code is consistent with the City’s Climate Action Plan’s interim target to achieve an 80% reduction in emissions by 2035 and net carbon neutrality by 2045 and General Plan policy 5.10.3-P1 “Promote the use of renewable energy resources, conservation and recycling programs,” in that the Zoning Code amendment would allow for an expedited City City of Santa Clara Printed on 5/5/2023Page 2 of 5
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23-556 Agenda Date: 5/9/2023
review process to promote these uses by the removal of the need to obtain a Use Permit for photovoltaics, which are renewable energy production technologies. 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.

The Planning Commission heard the proposed ordinance at the April 12, 2023 meeting.

Members of the Planning Commission asked clarifying questions regarding fuel cell technology and Silicon Valley Power and Community Development staff provided responses.

Chair Cherukuru commented that while GHG emissions will be reduced based on the new proposed requirements in the Zoning Code Amendment, making fuel cells a permitted use would also remove the requirement for complete CEQA review. Chair Cherukuru commented that without CEQA review, other subject areas required to be analyzed as part of CEQA, such as Cultural Resources, Biological Resources, and Noise, would not be evaluated. The Commission then discussed at length the implications of the removal of CEQA review for fuel cell projects.

Members of the Commission discussed making recommendations to change the proposed ordinance in order to share with the City Council their concerns that removing the Use Permit process for fuel cells could be a “slippery slope”. Assistant City Attorney Abbe advised that the terms of the settlement were specific to the draft ordinance and the Commission could either recommend denial of the proposed ordinance or approve it and make a second motion to share additional thoughts with the City Council.

The Planning Commission then voted to recommend that the City Council adopt the proposed ordinance (4-1-1). The Planning Commission then made a second motion for a recommendation that the City Council require the evaluation of other environmental resources to confirm that staff will be able to validate and mitigate any potential impacts resulting from a fuel cell project, including review of 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).

City staff recommend introducing the ordinance as drafted. Regarding the Planning Commission’s second motion, the City does not conduct environmental review for facilities that require only building permits or other ministerial approvals, which is consistent with CEQA’s requirements. City staff does not recommend that a review be done in this instance.

The resource areas cited in the Planning Commission’s motion are unlikely to present any significant impacts in the context of fuel cell installations. Fuel cells are typically installed to provide power to existing commercial or industrial facilities. Because they do not change or alter the existing uses at a site, fuel cells would not have any land use and planning, recreation, or utility and service system impacts. Construction of fuel cells also involves minimal or no soil excavation or disturbance, thereby avoiding any potential impacts to biological resources, cultural and tribal resources, geology, hydrology, or mineral resources. Fuel cells have only minimal aesthetic impacts, as they are contained in small modular crates that are interwoven into the existing built environment.

With regard to air quality and greenhouse gases, although they will utilize methane for a period of years, the fuel cells still emit lower emissions and have a similar/potential lower level of greenhouse City of Santa Clara Printed on 5/5/2023Page 3 of 5
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23-556 Agenda Date: 5/9/2023
gas efficiency as other, natural gas power sources. Bloom’s fuel cell technology has been certified by the California Air Resources Board’s (CARB) Distributed Generation Certification Program and all fuel cells operating in California need to obtain CARB certification, which is based on testing using CARB- and USEPA-approved methodologies. This testing confirms that the emissions from fuel cells are lower than the applicable limits for air pollutants of concern. In light of that CARB certification, local air districts - including the Bay Area Air Quality Management District (BAAQMD) - have exempted CARB certified fuel cells from air quality permitting requirements. Bloom’s fuel cells can also be converted to use renewable fuels - such as biomethane or renewable hydrogen. The settlement agreement obligates Bloom to utilize such renewable fuels, or purchase offsets, according to a schedule that will require the fuel cells to be fully carbon-neutral by 2045.

Bloom fuel cells have been installed and operating in the City since 2015. There are currently 5 fuel cell installations in Santa Clara; all were constructed pursuant to building permits and thus no CEQA review was required. To date, the City has not received any complaints of any environmental or other adverse impacts from the existing fuel cells.

ENVIRONMENTAL REVIEW
The proposed Zoning Code Amendment is covered by the common sense exemption 15061(b)(3) that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

The proposed Zoning Code amendment will not have the potential to cause a significant effect on the environment in that it will streamline the City’s review of fuel cells, which per the agreement with Bloom Energy, will include ongoing documentation to the City proving that the installed fuel cells meet certain emission limitations. With those standards in place, the emissions from the Bloom fuel cells will not be significantly different than the emissions generated by Silicon Valley Power. The ordinance would also streamline the review of photovoltaics, which are already deemed to be exempt from CEQA through a statutory exemption, Pub. Res. Code § 21080.35. The amendment will also reduce emissions from other technologies that meet the definition of electric power plant by requiring them to adhere to the state of California emissions requirements.

FISCAL IMPACT
There is no additional cost to the City other than administrative staff time and expense.

COORDINATION
This report was coordinated with the City Attorney’s Office and City Manager’s Office.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

RECOMMENDATION
City of Santa Clara Printed on 5/5/2023Page 4 of 5
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23-556 Agenda Date: 5/9/2023
Waive 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 Reviewed by: Andrew Crabtree Director, Community Development Approved by: Jōvan D. Grogan, City Manager

ATTACHMENTS

1. Draft Ordinance

2. Planning Commission Staff Report
City of Santa Clara Printed on 5/5/2023Page 5 of 5
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Rev:3-24-2023
ORDINANCE NO. _____

AN ORDINANCE OF THE CITY OF SANTA CLARA,
CALIFORNIA, AMENDING SECTION 18.60.050
(“ELECTRIC POWER PLANTS AND WATER WELLS”) OF
CHAPTER 1 8.60.50 (“SPECIAL USE REGULATIONS
APPLICABLE TO CERTAIN ZONI NG DISTRICTS ”), OF
TITLE 18 (“ZONING”) OF “THE CODE OF THE CITY OF
SANTA CLARA, CALIFORNIA,” RELATED TO ELECTRIC
POWER PLANTS.

BE IT ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:

SECTION 1: Section 18.60.050 (“Electric Power Plants and Water Wells”) of Chapter

18.60 (“Special Use Regulations Applicable To Certain Zoning Districts”), Of Title 18 (“Zoning”) of “The Code Of The City Of Santa Clara, California,” is hereby amended to read as follows:
“18.60.050 Electric power plants and water wells.
(a) The construction or operation of electric power plants, or the drilling, construction, or operation of water wells, is permitted only in the MP, ML, MH, PD, or B zoning districts. Water wells and electric power plants (excluding fuel cells and photovoltaic panels), shall first secure a use permit in each case as provided in Chapter 18.110 SCCC.
(b) All power plants, except fuel cells, shall not exceed state of California emissions requirements. Emissions requirements can be met in whole or in part by purchasing renewable energy credits, or offsets that meet CARB requirements. (c) For purposes of this section, “fuel cells” means all equipment, fixtures, and personal property operated or maintained in connection with a direct energy conversion device that converts chemical energy into electrical energy, or vice versa, using an electrochemical reaction.

Rev:3-24-2023
(d) For purposes of this section, “state of California emissions requirements” shall mean the requirements applicable to retail sales of electricity to California end- use customers under Public Utilities Code Section 454.53, subdivision (a), and the interim targets established by the California Energy Commission (CEC) under Public Utilities Code Section 399.15, subdivision (b), pursuant to the Renewable Portfolios Standard (RPS) Program, as set forth below. Should these targets be amended by legislation or regulatory changes to be more stringent, the more stringent requirements shall be applicable under this section. a. 44 percent by December 31, 2024
b. 52 percent by December 31, 2027
c. 60 percent by December 31, 2030
d. 90 percent by December 31, 2035
e. 95 percent by December 31, 2040
f. 100 percent by December 31, 2045
//

//

//

//

Rev:3-24-2023
//

SECTION 2. Effective date. This ordinance shall take effect thirty (30) days after its final adoption; however, prior to its final adoption it shall be published in accordance with the requirements of Section 808 and 812 of “The Charter of the City of Santa Clara, California.”
PASSED FOR THE PURPOSE OF PUBLICATION this _____ day of _________, 2023, by the following vote:

AYES: COUNCILORS:

NOES: COUNCILORS:

ABSENT: COUNCILORS:

ABSTAINED: COUNCILORS:

ATTEST:
___________________________

NORA PIMENTEL, MMC

ASSISTANT CITY CLERK

CITY OF SANTA CLARA

Attachments incorporated by reference: None

City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
23-454 Agenda Date: 4/12/2023

REPORT TO PLANNING COMMISSION

SUBJECT
Public Hearing: Action on Amendment of 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.

BACKGROUND
Title 18 of the City Code, referred to as the Zoning Code, establishes definitions and regulations for land uses within the City of Santa Clara.

Electric Power Plants are defined in section 18.06.010 of the Zoning Code as: “all equipment, fixtures, and personal property operated or maintained in connection with the production of electricity using any source of thermal, steam, wind, or solar energy with a generating capacity of more than five hundred (500) kilowatts and less than fifty (50) megawatts, including all conduits, ducts, or other devices, materials, apparatus, or property used or to be used for the transmission of the electricity so produced.”
Section 18.60.50 of the Zoning Code identifies electric power plants as a potentially permitted use, subject to the obtainment of a Use Permit, in the following zoning districts MP - Planned Industrial, ML - Light Industrial, MH - Heavy Industrial, and B - Public, Quasi-Public, and Public Park or Recreation.

Photovoltaic panels and fuel cells with a larger capacity for electricity production meet the Zoning Code definition of electric power plant and thus are subject to the requirement of obtaining a Use Permit (CUP) in accordance with Zoning Code Section 18.60.050. A CUP is a discretionary action requiring CEQA clearance. The Planning Commission recently approved a CUP for photovoltaic panels on August 24, 2022 (PLN2022-00189) to allow photovoltaic panels that will generate 1,388kW at Santa Clara University, and the Commission approved the use of a statutory exemption to CEQA for solar energy projects. For fuel cells, the Planning Commission has yet to review any CUP applications, but three applications are currently pending with the City.

Bloom Energy, Inc. is a manufacturer of fuel cells which utilize methane as part of their production process. In 2019, Bloom Energy filed a legal challenge to the imposition of a CUP and the associated CEQA review required for its proposed fuel cell projects at 3 locations in the City. That litigation is still pending, but the parties recently engaged in productive settlement negotiations, and on March 21, 2023, the City Council approved a tentative settlement, pursuant to which Bloom would agree to utilize renewable energy sources and/or offsets, and the City would agree to introduce an ordinance removing the CUP requirement for fuel cells. The language related to fuel cells in the proposed ordinance is in satisfaction of this settlement agreement.

City of Santa Clara Printed on 4/6/2023Page 1 of 4
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23-454 Agenda Date: 4/12/2023

DISCUSSION
The proposed Zoning Code amendment would streamline the process for constructing fuel cell and photovoltaic panels, allowing them to be permitted in the referenced zoning districts without the need to obtain a Use Permit. As a ministerial approval, applications to install fuel cells would no longer need to obtain CEQA clearance prior to installation.

The proposed Zoning Code amendment would align the Code with State legislation recognizing that photovoltaic technology has been documented as a clean energy source. California Senate Bill (SB) 226 (2011) added Section 21080.35 to the Public Resources Code, establishing a statutory exemption to the California Environmental Quality Act (CEQA) for solar projects installed on existing building rooftops and in parking lots. To align with this information about emissions standards being met by both fuel cells and photovoltaics, the proposed Zoning Code Amendment would permit these uses without the need to obtain a Use Permit from the City.

For other power generation technologies that meet the City’s definition of an Electric Power Plant, the proposed Zoning Code amendment would maintain the City’s current requirement to obtain a Use Permit. However, consistent with City Council priorities, the proposed ordinance would also impose a new renewable energy requirement on such new power plants to adhere to state of California emissions requirements. The ordinance would also expressly authorize power plants to be constructed in Planned Development (PD) zoning districts.

The Zoning Code is proposed to be amended as follows:

18.60.050 Electric power plants and water wells.
(a) The construction or operation of electric power plants, or the drilling, construction, or operation of water wells, is permitted only in the MP, ML, MH, PD, or B zoning districts. Water wells and electric power plants (excluding fuel cells and photovoltaic panels), and only after shall first secureing a use permit in each case as provided in Chapter 18.110 SCCC. (b) All power plants, except fuel cells, shall not exceed state of California emissions requirements.

Emissions requirements can be met in whole or in part by purchasing renewable energy credits, or offsets that meet CARB requirements.
(c) For purposes of this section, “fuel cells” means all equipment, fixtures, and personal property operated or maintained in connection with a direct energy conversion device that converts chemical energy into electrical energy, or vice versa, using an electrochemical reaction. (d) For purposes of this section, “state of California emissions requirements” shall mean the requirements applicable to retail sales of electricity to California end-use customers under Public Utilities Code Section 454.53, subdivision (a), and the interim targets established by the California Energy Commission (CEC) under Public Utilities Code Section 399.15, subdivision (b), pursuant to the Renewable Portfolios Standard (RPS) Program, as set forth below. Should these targets be amended by legislation or regulatory changes to be more stringent, the more stringent requirements shall be applicable under this section.

1. 44 percent by December 31, 2024

2. 52 percent by December 31, 2027

3. 60 percent by December 31, 2030

4. 90 percent by December 31, 2035

5. 95 percent by December 31, 2040

6. 100 percent by December 31, 2045
City of Santa Clara Printed on 4/6/2023Page 2 of 4
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23-454 Agenda Date: 4/12/2023
The proposed amendment to the Zoning Code is consistent with the City’s Climate Action Plan’s interim target to achieve an 80% reduction in emissions by 2035 and net carbon neutrality by 2045 and General Plan policy 5.10.3-P1 “Promote the use of renewable energy resources, conservation and recycling programs,” in that the Zoning Code amendment would allow for an expedited City review process to promote these uses by the removal of the need to obtain a Use Permit for photovoltaics, which are renewable energy production technologies. 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.

As part of the above-mentioned legal settlement agreement, Bloom Energy shall provide ongoing reports to the City of evidence of fuel cells adhering to emissions standards set forth in the agreement.

Note that although they are also referenced in Section 18.60.050, there are no proposed changes regarding water wells and drilling, construction, or operation and these uses will also continue to be subject to a Use Permit.

ENVIRONMENTAL REVIEW
The proposed Zoning Code Amendment is covered by the common sense exemption 15061(b)(3) that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed Zoning Code amendment will not have the potential to cause a significant effect on the environment in that it will streamline the City’s review of fuel cells, which per the agreement with Bloom Energy, will include ongoing documentation to the City proving that the installed fuel cells meet certain emission limitations. With those standards in place, the emissions from the Bloom fuel cells will not be significantly different than the emissions generated by Silicon Valley Power. The ordinance would also streamline the review of photovoltaics, which are already deemed to be exempt from CEQA through a statutory exemption, Pub. Res. Code § 21080.35. The amendment will also reduce emissions from other technologies that meet the definition of electric power plant by requiring them to adhere to the state of California emissions requirements.

FISCAL IMPACT
There is no additional cost to the City other than administrative staff time and expense.

COORDINATION
This report was coordinated with the City Attorney’s Office and City Manager’s Office.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

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23-454 Agenda Date: 4/12/2023

ALTERNATIVES

1. Recommend that the City Council adopt the proposed Zoning Code Amendment to Section

18.60.50 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.

2. Other Action taken by the Planning Commission.

RECOMMENDATION
Recommend that the City Council adopt the proposed Zoning Code Amendment to 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.

Reviewed by: Andrew Crabtree, Director, Community Development Approved by: Office of the City Manager

ATTACHMENT

1. Ordinance
City of Santa Clara Printed on 4/6/2023Page 4 of 4
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Rev:3-24-2023
ORDINANCE NO. _____

AN ORDINANCE OF THE CITY OF SANTA CLARA,
CALIFORNIA, AMENDING SECTION 18.60.050
(“ELECTRIC POWER PLANTS AND WATER WELLS”) OF
CHAPTER 1 8.60.50 (“SPECIAL USE REGULATIONS
APPLICABLE TO CERTAI N ZONI NG DISTRICTS ”), OF
TITLE 18 (“ZONING”) OF “THE CODE OF THE CITY OF
SANTA CLARA, CALIFORNIA,” RELATED TO ELECTRIC
POWER PLANTS.

BE IT ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:

SECTION 1: Section 18.60.050 (“Electric Power Plants and Water Wells”) of Chapter 18.60 (“Special Use Regulations Applicable To Certain Zoning Districts”), Of Title 18 (“Zoning”) of “The Code Of The City Of Santa Clara, California,” is hereby amended to read as follows:
“18.60.050 Electric power plants and water wells.
(a) The construction or operation of electric power plants, or the drilling, construction, or operation of water wells, is permitted only in the MP, ML, MH, PD, or B zoning districts.

Water wells and electric power plants (excluding fuel cells and photovoltaic panels), shall first secure a use permit in each case as provided in Chapter 18.110 SCCC. (b) All power plants, except fuel cells, shall not exceed state of California emissions requirements. Emissions requirements can be met in whole or in part by purchasing renewable energy credits, or offsets that meet CARB requirements. (c) For purposes of this section, “fuel cells” means all equipment, fixtures, and personal property operated or maintained in connection with a direct energy conversion device that converts chemical energy into electrical energy, or vice versa, using an electrochemical reaction.
(d) For purposes of this section, “state of California emissions requirements” shall mean the requirements applicable to retail sales of electricity to California end-use customers under

Rev:3-24-2023
Public Utilities Code Section 454.53, subdivision (a), and the interim targets established by the California Energy Commission (CEC) under Public Utilities Code Section 399.15, subdivision (b), pursuant to the Renewable Portfolios Standard (RPS) Program, as set forth below. Should these targets be amended by legislation or regulatory changes to be more stringent, the more stringent requirements shall be applicable under this section. a. 44 percent by December 31, 2024
b. 52 percent by December 31, 2027
c. 60 percent by December 31, 2030
d. 90 percent by December 31, 2035
e. 95 percent by December 31, 2040
f. 100 percent by December 31, 2045
//

//

//

//

//

Rev:3-24-2023
SECTION 2. Effective d ate. This ordinance shall take effect thirty (30) days after its final adoption; however, prior to its final adoption it shall be published in accordance with the requirements of Section 808 and 812 of “The Charter of the City of Santa Clara, California.” PASSED FOR THE PURPOSE OF PUBLI CATION this _____ day of _________, 20 23, by the following vote:

AYES: COUNCILORS:

NOES: COUNCILORS:

ABSENT: COUNCILORS:

ABSTAINED: COUNCILORS:

ATTEST: ___________________________

NORA PIMENTEL, MMC

ASSISTANT CITY CLERK

CITY OF SANTA CLARA

Attachments incorporated by reference: None

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