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HomeMy WebLinkAboutItem 7.1 - 3426 East Bay Community Energy Communitywide Ele Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: October 20, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Discussion of Carbon-Free Electricity Options Prepared by: Shannan Young, Environmental Coordinator EXECUTIVE SUMMARY: The City Council will consider the two potential carbon-free electricity options for community wide electricity accounts through the City of Dublin’s electricity provider, East Bay Community Energy. STAFF RECOMMENDATION: Receive the report and provide direction on the community wide East Bay Community Energy carbon-free electricity default product. FINANCIAL IMPACT: There is no impact to the General Fund but a discussion regarding the cost impacts of the carbon-free options is included below. Municipal electricity accounts are currently supplied with the Renewable 100 power portfolio. DESCRIPTION: At its September 15, 2020 meeting, the City Council adopted Resolution 100-20 (Attachment 1) approving the Climate Action Plan 2030 and Beyond (CAP 2030). The CAP 2030 includes 22 measures upon which the City must take action to meet the GHG emissions reduction goals. Setting community wide electricity accounts to carbon-free power provides the biggest GHG emissions reduction benefit of all the measures in CAP 2030 and is critical to achieving GHG emissions reduction goals. East Bay Community Energy (EBCE) currently provides three power portfolios: 1. Bright Choice provides 65% carbon-free electricity; 2. Brilliant 100 provides 100% carbon-free electricity; and 3. Renewable 100 provides 100% carbon-free and renewable electricity. As of July 1, 2020, EBCE discontinued accepting new accounts into Brilliant 100 and is eliminating the portfolio since it is no longer cost-competitive with Pacific Gas & Electric’s (PG&E) standard rates. All existing accounts will be shifted out of Brilliant 100 Page 2 of 3 in early 2021. A potential carbon-free alternative to the Brilliant 100 product (on par with PG&E’s standard rates) is called Brilliant 100 Select, which could include nuclear power provided by the Diablo Canyon Power Plant. EBCE has requested, but not yet received, approval for an allocation of nuclear energy from the California Public Utilities Commission (CPUC). A response from the CPUC is expected by October 31, 2020. If the City Council is interested in pursuing the potential Brilliant 100 Select option, or the Renewable 100 power portfolio, the City would need to provide that feedback to EBCE by November 2, 2020. In terms of costs, Renewable 100 is offered at $0.01 per kilowatt-hour more than PG&E’s standard rate (a 10% premium) and equates to approximately $3-4 more per month to the average residential energy bill. The increase to monthly commercial or industrial accounts would vary depending on the amount of electricity consumed by the business. If a carbon-free, non-renewable power portfolio is provided by EBCE (potential Brilliant 100 Select), it is anticipated that the offering will be provided at cost parity to PG&E’s standard rates. The EBCE Board will vote on potential alternatives to Brilliant 100 at its November 18, 2020 meeting. At its December 16, 2020, EBCE Board Members will vote on approval of city requests for their default power portfolios. When the EBCE Board approves the requested account defaults, those accounts will be transitioned six months later to the new power portfolio due to the need for community outreach and to allow EBCE time to adjust the accounts. Account holders will still retain the option to opt-down to Bright Choice, opt-up to Renewable 100 or opt-out of EBCE and receive electricity from PG&E. Summary Two options to achieve the GHG emissions reductions described in CAP 2030 Strategy 1, 100% Renewable and Carbon-Free Electricity are: 1. Communicate to the EBCE Board the desire to set community wide accounts to the Renewable 100 power portfolio which is both 100% renewable and carbon-free. 2. Communicate to the EBCE Board the desire to participate in a potential Brilliant 100 Select offering for community wide accounts, which is 100% carbon-free, and includes non-renewable electricity from nuclear and hydropower. Both options would achieve the CAP 2030 goal to reduce GHG emissions in Dublin by 25,525 metric tons of carbon dioxide. The Brilliant 100 Select option may provide a cost- neutral option, relative to PG&E's standard rates, however the Brilliant 100 Select option will only be available until the Diablo Canyon Power Plant closes, which will occur by 2025. Page 3 of 3 STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution 100-20 Adopting the City of Dublin Climate Action Plan 2030 and Beyond 2. September 15, 2020 CAP 2030 Staff Report (without attachments) Reso No. 100-20, Item 6.1, Adopted 09/15/2020 Page 1 of 2 RESOLUTION NO. 100 - 20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING THE CITY OF DUBLIN CLIMATE ACTION PLAN 2030 AND BEYOND WHEREAS, on November 16, 2010 the City Council adopted Resolution 167-10 approving the City of Dublin Climate Action Plan establishing greenhouse gas (GHG) reduction goals for 2020; and WHEREAS, under the California Environmental Quality Act (CEQA) a city may prepare a qualified GHG Reduction Strategy or Climate Action Plan to evaluate a community’s cumulative impact due to GHG emissions from future planned development; and WHEREAS, if a project is consistent with an adopted, qualified GHG Reduction Strategy or Climate Action Plan, the Strategy/Plan can be used as a basis for determining that the project would have a less than significant impact on a community’s cumulative GHG emissions under CEQA; and WHEREAS, on October 15, 2013 the City Council adopted Resolution 177-13 approving the City of Dublin Climate Action Plan Update to use as a basis for determining that a future project that was consistent with the adopted Climate Action Plan Update would have a less than significant impact on Dublin’s cumulative GHG emissions under CEQA through 2020; and WHEREAS, the City of Dublin is on track to meet the 2020 GHG reduction goals established by the Plans; and WHEREAS, in 2016, the California Legislature adopted Senate Bill (SB) 32 to extend the State’s commitment to GHG emissions reductions by tightening the target to 40% below 1990 levels by 2030; and WHEREAS, in 2018, Governor Brown adopted Executive Order (EO) B-55-18 setting a Statewide goal of reaching carbon neutrality by no later than 2045; and WHEREAS, on December 17, 2019, the City Council provided consensus to align the City’s future Climate Action Plan with both SB 32 and EO B-55-18 goals and consensus to proceed with the draft strategies and measures to achieve those goals; and WHEREAS, the Climate Action Plan 2030 and Beyond establishes the following targets: 1. Reduce GHG emissions to 40% below 1990 levels by 2030 2. Reach carbon neutrality by 2045; and WHEREAS, the Climate Action Plan 2030 and Beyond contains 22 measures grouped into the five strategies listed below to reduce GHG emissions by roughly 73,000 metric tons carbon dioxide equivalent by 2030: 1. 100% Renewable and Carbon-Free Electricity 2. Building Efficiency and Electrification 3. Sustainable Mobility and Land Use Reso No. 100-20, Item 6.1, Adopted 09/15/2020 Page 2 of 2 4. Material and Waste Management 5. Municipal Leadership; and WHEREAS, the implementation of the Climate Action Plan 2030 and Beyond will result in co-benefits in the following areas: economic growth, reduced traffic congestion, improved public health, healthier ecosystems, robust landscapes, carbon sequestration, enhanced resilience, equity and inclusion, community leadership and partnerships, and cutting-edge technologies; and WHEREAS, the City Council held a properly noticed public hearing on the Climate Action Plan 2030 and Beyond and related Negative Declaration on September 15, 2020; and WHEREAS, the City Council did review and consider the Negative Declaration and the Climate Action Plan 2030 and Beyond and all said reports, recommendations, and testimony herein and set forth prior to making its decision on the Climate Action Plan 2030 and Beyond. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve and adopt the Climate Action Plan 2030 and Beyond attached hereto as Exhibit A to the Resolution and authorizes Staff to make any non-substantive grammatical or editing changes in the final document. PASSED, APPROVED AND ADOPTED this 15th day of September 2020, by the following vote: AYES: Councilmembers Goel, Hernandez, Josey, Kumagai and Mayor Haubert NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Page 1 of 6 STAFF REPORT CITY COUNCIL DATE: September 15, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Climate Action Plan 2030 and Beyond Prepared by: Rebecca Parnes, Environmental Technician EXECUTIVE SUMMARY: The City Council will conduct a public hearing on the Initial Study/Negative Declaration for, and consider adoption of, the Climate Action Plan 2030 and Beyond. The Climate Action Plan establishes 22 measures to achieve greenhouse gas emissions reductions equal to 40% below 1990 levels by 2030 and puts the City on the path to achieve carbon neutrality by 2045. STAFF RECOMMENDATION: Conduct the public hearing, deliberate, and adopt the Resolution Adopting an Initial Study/Negative Declaration for the City of Dublin Climate Action Plan 2030 and Beyond and adopt the Resolution Adopting the City of Dublin Climate Action Plan 2030 and Beyond. FINANCIAL IMPACT: Adoption of the Climate Action Plan 2030 and Beyond (CAP 2030, Exhibit A to Attachment 4) does not immediately obligate the City to incur costs on implementation measures. Staff will return to the City Council for feedback, approval and authorization to implement CAP 2030 measures, as necessary. A list of estimated community and City costs, as well as co-benefits of each measure, is provided in the CAP 2030 Table 6-3: Measure Co-Benefits and Implementation Costs, which is also provided as Attachment 6. A more detailed description of cost estimates can be found in the CAP 2030 within each measure description and in Appendix C Measure Quantification Evidence. Table 8-1, Climate Action Plan Funding Matrix in the CAP 2030 (Attachment 7) highlights implementation funding options. Financial incentives and rebates to offset such costs for implementation measures will be promoted when available. Page 2 of 6 DESCRIPTION: On December 17, 2019, the City Council received a report (Attachment 8) on potential implementation measures and goals for inclusion in an updated Climate Action Plan CAP). The update to the CAP builds upon the success of the current CAP which was adopted by the City Council in 2013. Dublin is on track to meet its 2020 greenhouse gas (GHG) emissions reduction goals described in the 2013 CAP, despite being one of the fastest growing communities in California for several years. Many successful CAP initiatives have been implemented including installation of publicly accessible electric vehicle charging stations at four municipal locations, implementation of the City’s Bicycle and Pedestrian Master Plan, participation in the Alameda County Waste Management Authority’s Mandatory Recycling Ordinance, and participation in the Sustainable States Network Community Energy Challenge. The proposed implementation measures for the updated CAP, to achieve GHG emissions reductions equal to 40% below 1990 levels by 2030, was presented to the City Council at the December 17, 2019 meeting and are substantially the same as the measures in the final draft of the Climate Action Plan 2030 and Beyond (CAP 2030). The CAP 2030 (Attachment 5) includes the following five strategies to achieve GHG emissions reductions: Strategy 1 – Renewable and Carbon Free Energy Strategy 2 – Building Efficiency and Electrification Strategy 3 – Sustainable Mobility and Land Use Strategy 4 – Materials and Waste Management Strategy 5 – Municipal Leadership Each strategy includes several implementation measures with identified co-benefits, community costs, and City costs. A summary of these is found in CAP 2030, Table 6-3 Attachment 6). Though the implementation measures are substantially the same as was presented to the City Council in December, the measure with the greatest GHG emission reduction potential relating to 100% clean electricity has been adjusted to reflect a decision by the East Bay Community Energy (EBCE) Board to freeze new enrollment in Brilliant 100 as of July 1, 2020. Staff originally proposed that the City Council would consider adopting a Resolution to opt-up communitywide accounts to either 100% carbon-free (Brilliant 100) or 100% renewable and carbon-free (Renewable 100) energy with EBCE. The proposed revised measure, CF-1: Opt-Up to 100% Renewable and Carbon-Free Electricity, is adjusted to reflect the sole current carbon-free offering at EBCE, Renewable 100. Two decisions by the EBCE Board led to the elimination of Brilliant 100. On April 22, 2020, the EBCE Board voted to decline to accept an allocation of nuclear energy from Pacific Gas & Electric. The EBCE Board also voted to establish a power content Page 3 of 6 procurement floor so that renewable energy from wind and solar is now the benchmark for comparing EBCE’s carbon-free power content to that of PG&E. Prior to this, EBCE compared all carbon-free power, including non-renewable carbon-free electricity from large hydropower to PG&E’s non-renewable carbon-free power, which includes both large hydropower and nuclear energy. These two decisions have made it more difficult for Brilliant 100 to remain competitive with PG&E. The EBCE Board will consider options for alternate carbon-free offerings that are on par with PG&E’s standard service rates at its next Board meeting scheduled for September 16, 2020, including possibly bringing back a nuclear energy option, currently dubbed Brilliant 100 Select”. EBCE presented this option to staff from Alameda County cities on August 18, 2020 at the monthly EBCE update that follows the StopWaste Technical Advisory Group meeting. If the City Council is interested in a potential Brilliant 100 Select offering, it needs to be proactively communicated to EBCE by October 2020 at the latest. If the Brilliant 100 Select product is approved by the EBCE Board, the nuclear power source will be the Diablo Canyon Power Plant which is owned by PG&E. The Diablo Canyon Power Plant is scheduled to close in 2025, making Brilliant 100 Select an interim option for 100% carbon-free electricity. There is no proposed change to Renewable 100 cost or power portfolio. CAP 2030 Implementation and Monitoring Implementation of the CAP 2030 and achievement of the GHG emissions reduction goals requires engagement and action by the Dublin community in addition to City actions. As such, every measure except for those under “Municipal Leadership” incorporates some element of community outreach, which will typically be done before a resolution is proposed to the City Council for consideration and/or before a program is implemented, and after a program is initiated. If the CAP 2030 is adopted, Staff plans to develop and implement a public education plan to promote behavior change relative to the actions identified in the CAP 2030. The public education plan for the CAP 2030 will be updated and adjusted as needed to facilitate effective public education on measure implementation requirements, financing opportunities, and co-benefits of the CAP 2030 implementation. Staff will conduct annual monitoring of the GHG emissions reduction measures and report to the City Council every other year beginning in 2022. Table 8-2: GHG Emissions Reduction Measures Monitoring and Reporting Program in the CAP 2030 lists how, when, and which City department(s) will monitor the ongoing implementation of the CAP measures. Staff will conduct GHG emissions reductions inventories on a routine basis but no less than every three years with the next inventory to be complete for calendar year 2022. If the City has made sufficient progress on GHG emissions reduction goals by 2025 to reach the 2030 targets, it is anticipated that no additional CAP measure adjustments would be proposed before the next scheduled CAP update. If the City is not on track to meet 2030 GHG emissions reduction goals by 2025, a CAP Page 4 of 6 update may be brought to the City Council for consideration to add emissions reduction measures. A complete CAP update for post-2030 to achieve carbon neutrality by no later than 2045 will be required, and Staff will begin this effort in 2028. Conclusion In addition to GHG emissions reduction benefits, the CAP 2030 highlights co-benefits or positive effects that implementation of each measure can achieve. These co-benefits include economic growth, reduced traffic congestion, improved public health, healthier ecosystems, robust landscapes, carbon sequestration, enhanced resilience, equity and inclusion, community leadership and partnerships, and cutting-edge technologies. The anticipated co-benefits support the City’s mission: “The City of Dublin promotes and supports a high quality of life, ensures a safe and secure environment, fosters new opportunities, provides equity across all programs, and champions a culture of diversity and inclusion.” If adopted, the CAP 2030 will be a new milestone in the City’s commitment to a sustainable, equitable future for the entire community. After CAP 2030 adoption by the City Council, the measures Staff plans to prioritize for further City Council action in the coming months are: CF-1: Opt-Up to 100% Renewable and Carbon-Free Electricity EE-1. Achieve All-Electric New Building Construction SM-1. Adopt an Electric Vehicle Charging Station Ordinance Staff has already begun work on the following measures and intends to continue this work: SM-5. Update the City’s Bicycle and Pedestrian Master Plan SM-6. Continue to Prioritize Transit-Oriented Development ML-1. 100% Renewable Electricity for Municipal Buildings and Operations completed) ML-3. Electrify Municipal Vehicle Fleet and Equipment ML-6. Enhance Municipal Carbon Sequestration Opportunities ML-7. Implement the Green Stormwater Infrastructure Plan Environmental Review The overall purpose of the CAP 2030 is to reduce greenhouse gas (GHG) emissions and the impacts that GHG emissions will have on the community and the global environment, and therefore, it is a project designed to benefit the environment. As a result, it may not constitute a “project” under the California Environmental Quality Act CEQA), or it may qualify for an exemption under CEQA. However, as with a proposal relating to development, implementation of the CAP 2030 could potentially result in adverse impacts on the physical environment. Therefore, an Initial Study was prepared by the City pursuant to CEQA to evaluate whether there are any potentially adverse environmental impacts of implementing the CAP 2030. No adverse impacts were identified, and a Negative Declaration was prepared. Page 5 of 6 The Initial Study/Negative Declaration was circulated for public review from July 24, 2020 to August 24, 2020 (Exhibit A to Attachment 1). During the public review period, the City received four comment letters and one comment email (Exhibit B to Attachment 1) from the following: California Department of Conservation Geologic Energy Management Division dated August 3, 2020 Romal Mitr (email) dated August 12, 2020 Western Propane Gas Association dated August 19, 2020 Tri-Valley Air Quality Community Alliance dated August 21, 2020 Bay Area Air Quality Management District (BAAQMD) dated August 24, 2020 None of the comment letters raised any concerns resulting in adjustments to the CEQA document or the CAP 2030. CEQA allows cities to develop Climate Action Plans or GHG emissions reductions plans to provide programmatic analysis of cumulative impacts of GHG emissions for future projects in the City. CEQA Guidelines Section 15183.5 authorizes the use of these plans for the analysis of the cumulative impacts of projects. The BAAQMD CEQA Guidelines and Significance Thresholds for GHG emissions also authorize the use of these plans for CEQA review of future projects. The CAP 2030 serves as the City’s qualified GHG Reduction Plan and programmatic tiering document for the purposes of CEQA for analysis of impacts of GHG emissions and climate change. The City has determined that the reduction target in the Plan will reduce the impact from activities in the Plan to a less than significant level under CEQA i.e., the project will not make a cumulatively considerable contribution to a significant cumulative impact). Therefore, the CAP 2030 may be used for the cumulative impact analysis for future projects and development in the City covered by the Plan. As such, it satisfies CEQA review requirements for all applicable projects within the City. If a proposed project is consistent with the applicable GHG emissions reduction measures identified in the CAP 2030, the project would be considered to have a less than significant impact (i.e., the project will not make a cumulatively considerable contribution to a significant cumulative impact) due to GHG emissions and climate change consistent with Public Resources Code 21083.3, CEQA Guidelines Sections 15183.5, 15064, and 15130, and BAAQMD adopted CEQA Guidelines and GHG Significance Thresholds. STRATEGIC PLAN INITIATIVE: None. Page 6 of 6 NOTICING REQUIREMENTS/PUBLIC OUTREACH: A Public Notice was mailed to interested parties, including surrounding jurisdictions and various state and regional agencies. Additionally, the Public Notice was published in the East Bay Times and posted in the Civic Center kiosk. A news flash was also released. ATTACHMENTS: 1. Resolution Adopting an Initial Study/Negative Declaration for the City of Dublin Climate Action Plan 2030 and Beyond 2. Exhibit A to the Resolution - Initial Study Negative Declaration 3. Exhibit B to the Resolution - Comments Received on the Negative Declaration 4. Resolution Adopting the City of Dublin Climate Action Plan 2030 and Beyond 5. Exhibit A to the Resolution - City of Dublin Climate Action Plan 2030 and Beyond 6. CAP 2030 Table 6-3: Measure Co-Benefits and Implementation Costs 7. CAP 2030 Table 8-1: Climate Action Plan Funding Matrix 8. 12-17-2019 Item 7.1 - Report on Status of Climate Action Plan Update (Report Only - No Attachments)