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HomeMy WebLinkAbout7.1 East Bay Community Energy Renewable and Carbon-Free ElectricitySTAFF REPORT CITY COUNCIL Page 1 of 5 Agenda Item 7.1 DATE:January 12, 2021 TO:Honorable Mayor and City Councilmembers FROM:Linda Smith, City Manager SUBJECT:East Bay Community Energy Renewable and Carbon-Free Electricity Prepared by: Shannan Young, Environmental Services Division Manager EXECUTIVE SUMMARY: The City Council will consider a 100% renewable and carbon-free default electricity product for most Dublin residents. Setting the residential default electricity product to the Renewable 100 electric power portfolio offered by the City of Dublin’s energy provider, East Bay Community Energy, will facilitate meeting greenhouse gas emissions reductions goals adopted in the Climate Action Plan 2030 and Beyond. Medical baseline accounts and customers on California Alternate Rates for Energy and Family Electric Rate Assistance programs would remain on the current default East Bay Community Energy electricity product, Bright Choice. STAFF RECOMMENDATION: Adopt the Resolution Requesting East Bay Community Energy Enroll City of Dublin Residential Accounts in Renewable 100 as the Default Electricity Product. FINANCIAL IMPACT: There is no impact to the General Fund since all municipal electricity accounts are currently supplied with the Renewable 100 power portfolio. A discussion regarding cost impacts to the community is included in the report below. DESCRIPTION: Background At its September 15, 2020 meeting, the City Council adopted Resolution 100-20 (Attachment 2) approving the City of Dublin Climate Action Plan 2030 and Beyond (CAP 2030). The CAP 2030 establishes the City’s goal to reduce greenhouse gas (GHG) emissions by 40% below 1990 levels by 2030 and sets the City on the path to achieve carbon neutrality by 2045. The CAP 2030 includes 22 measures upon which the City must take action to meet its GHG emissions reduction goals. The most significant action the City can take to meet the goals in the CAP 2030 is setting community- 127 Page 2 of 5 wide electricity accounts to carbon-free power. As shown below in Table 6-1 of CAP 2030, this one action (Measure CF-1) reduces GHG emissions by approximately the equivalent of 25,000 metric tons of carbon dioxide, which is more than half of all the combined GHG emissions reductions that can be achieved in CAP 2030. CAP 2030 Table 6-1: GHG Emissions Reduction Measures Quantification (MT CO2e) by Strategy Measure 2025 GHG Emissions (MT CO2e*) 2030 GHG Emissions Reductions (MT CO2e) Strategy 1 - Renewable and Carbon-Free Energy (CF) Measure CF-1: Opt Up to 100% Carbon-Free or Renewable Electricity 25,525 20,195 Strategy 2 - Building Efficiency and Electrification (EE) Measure EE-1: Achieve All-Electric New Building Construction 2,633 4,828 Measure EE-4: Develop an Existing Building Electrification Plan 5,289 15,027 Strategy 3 - Sustainable Mobility and Land Use (SM) Measure SM-1: Adopt an Electric Vehicle Charging Station Reach Code 8,320 26,288 Measure SM-3: Develop a Transportation Demand Management Plan 2,540 4,036 Measure SM-5: Update and Implement the Bicycle and Pedestrian Master Plan 328 537 Strategy 4 - Materials and Waste Management (MM) Measure MM-1: Achieve the Waste Diversion Requirements of SB 1383 3,427 3,615 Reductions Needed (Emissions Gap)30,177 73,866 Total Measures Reduction Potential 48,062 74,526 *MT CO2e means metric tons carbon dioxide equivalent. The City can achieve the CAP 2030 goal to provide renewable and carbon-free electricity to the Dublin community through partnership with the City’s electricity provider, East Bay Community Energy (EBCE). EBCE is the community choice aggregation (CCA) program for most cities in Alameda County and the City of Tracy (the City of Alameda does not participate since it owns its electricity company, Alameda Municipal Power). Authorized by California law in 2002, CCA enables cities and counties to pool the electricity demand within their jurisdictions in order to procure or generate electrical power on behalf of the residents and businesses in their communities. CCAs work in partnership with the region’s existing utility, Pacific Gas & Electric (PG&E). Under the partnership, the CCA (EBCE) procures and/or generates electricity on behalf of 128 Page 3 of 5 its customers, while PG&E continues to deliver power to homes and businesses, manages customer billing, and maintains the electric grid. On December 6, 2016, City Council approved participation in EBCE as one of the founding members of the EBCE Authority Joint Powers Agreement with the adoption of Ordinance 13-16, an Uncodified Ordinance Authorizing the Implementation of a Community Choice Aggregation Program (Attachment 3). The electric power portfolio options provided by EBCE have been in flux over the past year. When Staff initially began developing measures for the CAP 2030, the three electric power portfolios offered by EBCE were: Bright Choice, which is offered at a slight discount to PG&E’s standard rates but is not 100% carbon-free; Brilliant 100, which is 100% carbon-free and has been offered at rates on par with PG&E’s standard rates; and, Renewable 100, which is both 100% carbon-free and 100% renewable and is offered at a slight premium to PG&E’s standard rates. When the CAP 2030 was brought to the City Council for consideration on September 15, 2020, Staff noted that the status of Brilliant 100 was uncertain (Attachment 4) because the EBCE Board had voted to freeze new enrollments in Brilliant 100 as of July 1, 2020. The reason for EBCE freezing new Brilliant 100 enrollments is twofold. On April 22, 2020, the EBCE Board voted to decline to accept an allocation of nuclear energy from PG&E. The EBCE Board also voted to establish a power content procurement floor so that renewable energy from wind and solar is now the benchmark for comparing EBCE’s carbon-free power content, which previously included large hydropower, to PG&E’s carbon-free power, which includes both large hydropower and nuclear energy. These two decisions caused Brilliant 100 to be more expensive to procure and supply than PG&E standard rates, causing Brilliant 100 to be unsustainable in its current form from a business perspective. Since the April 22, 2020 decision, some municipalities, including Dublin, had requested the EBCE Board reconsider adding a short-term, carbon-free electricity product offered on par with PG&E’s standard rates that could include nuclear energy (Attachment 5). The municipalities that made the request desire to achieve GHG emissions reductions goals without causing additional hardship during the current economic crisis caused by the COVID-19 pandemic. On October 20, 2020, Staff presented an informational report to the City Council describing the potential carbon-free alternative that includes nuclear power (Attachment 6). As described in the report, the nuclear power would have been procured from the Diablo Canyon Nuclear Power Plant, which will be decommissioned by 2025. Subsequently, EBCE Chief Executive Officer, Nick Chaset, informed EBCE Board Members via email, prior to the November 18, 2020 Board Meeting, that EBCE Staff would not bring a Brilliant 100 power portfolio option including nuclear energy to the Board for consideration. The options brought to the EBCE Board (Attachment 7) included: 129 Page 4 of 5 A. Close all Brilliant 100 accounts, including to existing customers, by February 1, 2021; B. Set Brilliant 100 cost above PG&E standard rates; or C. Maintain Brilliant 100 at cost parity with PG&E (with a subsidy), but close Brilliant 100 effective January 1, 2022. The EBCE Board approved the third option, to maintain Brilliant 100 at cost parity with PG&E for existing customer accounts. Newly enrolling municipalities (the cities of Pleasanton, Newark, and Tracy) may also offer Brilliant 100 as an option for their communities, but only through January 1, 2022. Dublin, and other communities, may not offer Brilliant 100 as a new enrollment option to their customers. Carbon-Free Power Options for Dublin As a result of the November 18, 2020 EBCE Board vote, there is only one carbon-free power portfolio for community-wide accounts in Dublin, Renewable 100. Renewable 100 is offered at a slight cost premium compared to PG&E’s standard rates. The Renewable 100 premium is about $0.01 per kilowatt-hour. This premium equates to approximately $3 to $4 more per month for the average residential energy bill. The additional cost per household is relatively small and is likely not to have a significant impact on most household budgets. Residents enrolled in the California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) programs and medical baseline accounts, would remain in the current electric default portfolio, Bright Choice. The impact of Renewable 100 to commercial and industrial customers could be more significant. According to EBCE, the increase to the average small commercial customer in the A-1X rate schedule would be approximately $15 per month more than PG&E’s standard rates. However, the increase could be thousands of dollars more per month for large commercial and industrial customers. During the COVID-19 pandemic and resulting economic crisis, the additional cost to the business community for opting-up to the Renewable 100 power portfolio may be too much to bear for struggling businesses. At this time, Staff recommends a voluntary approach for non- residential accounts whereby businesses would be encouraged to opt-up to Renewable 100, while Bright Choice would remain the default power product. Staff will reevaluate the default electricity product for commercial and industrial accounts as the community recovers from the pandemic. Conclusion and Next Steps The single biggest action the City can take to meet the GHG emissions reduction goals adopted in the CAP 2030 is to enroll community-wide accounts into a carbon-free electricity product. This is also the most economically feasible way to achieve GHG emissions reductions equivalent to approximately 25,000 metric tons of carbon dioxide, which is over half of the total potential GHG emissions reductions that can be achieved through CAP 2030 measures. Setting the default electricity product for most residential accounts to Renewable 100 will bring the City one step closer to achieving the GHG emissions reductions goals. If the default residential energy product is switched to Renewable 100, residential accounts will retain the option to opt-down to Bright Choice or opt-out to PG&E. CARE, FERA and medical baseline residents will remain on the Bright Choice power portfolio and consequently have no impact on their electric bills. 130 Page 5 of 5 Commercial and industrial customers will remain on Bright Choice for at least a year. Over the course of the year, Staff will work with EBCE to provide targeted outreach to the business community to encourage voluntary opt-up to Renewable 100. In 2022, the City will reevaluate the Renewable 100 power portfolio as the default product for commercial and industrial customers, since to achieve the CAP 2030 GHG emissions reduction goals, it will be necessary to eventually enroll all community accounts in Dublin to a carbon-free electricity option. Residential vs. Non-Residential Electricity in Dublin According to EBCE, there are approximately 26,000 total electrical accounts in Dublin, with residential accounts representing a significant majority with approximately 23,800 accounts (about 91.5% of total accounts). However, as far as the amount of electricity used citywide, residential use is approximately 134,000,000 kilowatt-hours (kWh), which is 53.6% of the 250,000,000 kWh used annually in Dublin. Setting the default residential electricity product to Renewable 100 will allow the City to get approximately halfway to the goal established by Strategy 1 - Renewable and Carbon-Free Energy in the recently approved CAP 2030. If the City Council approves the attached resolution requesting that EBCE enroll City residential accounts in Renewable 100 as the default electric product, the EBCE Board will vote on the request at an upcoming Board meeting. If the EBCE Board approves the request, there will be a transition period of at least six months as it procures the appropriate electric resources and conducts the necessary system adjustments. During this time, noticing to the community about the new default electricity product will be provided though EBCE and Dublin Staff. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Resolution Requesting East Bay Community Energy Enroll City of Dublin Residential Accounts in Renewable 100 as the Default Electric Product 2) Resolution 100-20 Adopting the City of Dublin Climate Action Plan 2030 and Beyond 3) Ord 13-16 An Uncodified Ordinance Authorizing the Implementation of a Community Choice Aggregation Program 4) September 15, 2020 CAP 2030 Staff Report (without attachments) 5) City of Dublin letter to CEO Nick Chaset 6) October 20, 2020 Discussion of Carbon-Free Electricity Options Staff Report (without attachments) 7) November 18, 2020 EBCE Staff Report on Brilliant 100 Options 131 Attachment 1 RESOLUTION NO. XX – 21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN REQUESTING EAST BAY COMMUNITY ENERGY ENROLL CITY OF DUBLIN RESIDENTIAL ACCOUNTS IN RENEWABLE 100 AS THE DEFAULT ELECTRICITY PRODUCT WHEREAS, the City of Dublin has been a leader in the fight against climate change, having adopted its first Climate Action Plan in 2010 with an update in 2013, with the goal to reduce greenhouse gas emissions to 1990 levels by 2020; and WHEREAS,on September 15, 2020, the City Council of the City of Dublin adopted the City of Dublin Climate Action Plan 2030 and Beyond that includes a goal of reducing greenhouse gas emissions by 40% below 1990 levels by 2030 to align with California Senate Bill 32 and to put the City on a path to reach carbon neutrality by 2045; and WHEREAS, Climate Action Plan 2030 and Beyond identifies renewable and carbon-free electricity as the biggest opportunity to reduce greenhouse gas emissions within the City of Dublin; and WHEREAS, the City of Dublin’s electricity provider, East Bay Community Energy (EBCE), offers a 100% carbon-free and 100% renewable electricity product called Renewable 100; and WHEREAS, enrolling residential accounts in the Renewable 100 carbon-free electricity option is the most cost-effective way to reduce greenhouse gas emissions in Dublin and would cost the average homeowner approximately four dollars per month more than current electricity rates; and WHEREAS, residential accounts on California Alternate Rates for Energy (CARE), Family Electric Rate Assistance (FERA), and medical baseline accounts will remain on the current default electric power product, EBCE’s Bright Choice power product, offered at a slight discount compared to Pacific Gas & Electric’s (PG&E) standard product; and WHEREAS, the City of Dublin and EBCE will reach out to commercial, industrial, and institutional customers to encourage opting-up to the Renewable 100 power portfolio and the City of Dublin intends to re-evaluate Renewable 100 as the default product for these customers within the next year; and 132 Attachment 1 WHEREAS, residential customers in the City of Dublin would retain the option to “opt down” to an electric power portfolio with a lower percentage of carbon-free electricity or “opt out” to PG&E’s electricity; and WHEREAS, establishing a renewable and carbon-free default electricity product for residential customers would allow Dublin to showcase its environmental leadership and demonstrate efforts to create a sustainable community in line with the goals of Climate Action Plan 2030 and Beyond. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Dublin does request that East Bay Community Energy hereby enroll the City of Dublin in the Renewable 100 electric power portfolio as the default electricity product for all residential accounts, except for CARE, FERA, and medical baseline accounts which would remain on the Bright Choice electric power portfolio. BE IT FURTHER RESOLVED that the City Council of the City of Dublin requests that the EBCE Board consider Dublin’s Renewable 100 default power portfolio request at the earliest possible upcoming EBCE Board Meeting. PASSED, APPROVED AND ADOPTED this 12th day of January 2021 by the following vote: AYES: NOES: ABSENT: ABSTAIN: _____________________________________ Mayor ATTEST: _______________________________________ City Clerk 133 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 Attachment 2 134 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 135 Attachment 3 136 137 138 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. Attachment 4 139 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 140 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 141 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. 142 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. 143 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) 144 November 2, 2020 Nick Chaset, Chief Executive Officer East Bay Community Energy 1999 Harrison Street, Suite 800 Oakland, CA 94612 Via email to: nchaset@ebce.org Regarding: Power Content Options for a 100% Carbon-Free Product Dear Mr. Chaset: The City of Dublin (City) is proud to be a member of EBCE and to partner on exciting EBCE spearheaded programs such as the municipal fleet electrification analysis and solar plus battery storage resiliency efforts. As the City begins implementing its newly updated Climate Action Plan (CAP), the partnership and programs will be even more important. The keystone action in the updated CAP is community wide opt-up to a carbon-free power portfolio. The City understands that there are no new enrollments allowed into the existing Brilliant 100 power portfolio which had been the carbon-free option available at cost parity to Pacific Gas & Electric’s (PG&E) standard rates. Now, the only carbon-free product is the Renewable 100 power portfolio which is offered at a cost premium. Especially during these trying economic times, the City is interested in a product that could include nuclear power from the Diablo Canyon Power Plant if it would be a 100% carbon-free product offered at rate parity with PG&E. Having this carbon-free power portfolio alternative available, which would create no new nuclear waste, would be a helpful bridge as cities try to achieve greenhouse gas emissions reductions goals while not burdening the community with increased electricity costs. Thank you for your consideration. If you have any questions, please contact Shannan Young at shannan.young@dublin.ca.gov or at 925-833-6616. Sincerely, Linda Smith City Manager CC: Mayor and City Council Andrew Russell, Public Works Director Shannan Young, Environmental & Sustainability Division Manager Attachment 5 145 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 Attachment 6 146 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. 147 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) 148 Staff Report Item 13 Staff Report Item 13 TO: East Bay Community Energy Board of Directors FROM: Nick Chaset, Chief Executive Officer SUBJECT: Brilliant 100 Options (Action Item) DATE: November 18, 2020 ________________________________________________________________________ Recommendation Decide to change the Brilliant 100 consumer electricity product in one of following way: A)Close Brilliant 100 effective February 1, 2021. All current Brilliant 100 customers would be defaulted onto Bright Choice unless the city council/Board of Supervisors have affirmatively voted to default these customers onto another product, or B)Set Brilliant 100 cost above PG&E – with specific premium brought to Board of Directors in December 2020. All current Brilliant 100 customers would see these new costs effective February 1, 2021. Under this option Brilliant 100 would continue to be available to all EBCE customers, or C)Maintain Brilliant 100 cost at parity with PG&E for 2021, but close Brilliant 100 effective January 1, 2022. Background and Discussion At its meeting on June 17, 2020, EBCE’s Board voted to close Brilliant 100 to new accounts beginning July 1, 2020, as one of several budget-related actions. Staff had determined current Brilliant 100 rates no longer cover the cost of service and would need time to develop alternative courses of action for the Board to consider. Over the last number of months, EBCE staff have worked to develop three options for how to proceed with Brilliant 100 for 2021 and beyond. The three options are laid out in the attached presentation. Fiscal Impact Option C carries a projected fiscal impact of at least $1.85m. Attachments A.Presentation on New Carbon-free Electricity Product and Brilliant 100 Options Attachment 7 149 Brilliant 100 Options in 2021 Nick Chaset November 18, 2020 150 Overview of Agenda Item Which of the following changes to Brilliant 100 for 2021 should EBCE make? A)Close Brilliant 100 effective February 1, 2021. All current Brilliant 100 customers would be defaulted onto Bright Choice unless the city council/Board of Supervisors have affirmatively voted to default these customers onto another product, or B)Set Brilliant 100 cost above PG&E –with specific premium brought to Board of Directors in December 2020. All current Brilliant 100 customers would see these new costs effective February 1, 2021. Under this option Brilliant 100 would continue to be available to all EBCE customers, or C)Maintain Brilliant 100 cost at parity with PG&E for 2021, but end B100 effective January 1, 2022 2151 2021 Brilliant 100 Policy Option A •Close Brilliant 100 effective February 1, 2021. •All current Brilliant 100 customers would be defaulted onto Bright Choice unless the city council/Board of Supervisors have affirmatively voted to default these customers onto another product. •No Fiscal Impact 3152 2021 Brilliant 100 Policy Option B •Set Brilliant 100 cost above PG&E –with specific premium brought to Board of Directors in December 2022. •All current Brilliant 100 customers would see these new costs effective February 1, 2021. •Under this option Brilliant 100 would continue to be available to all EBCE customers. •No Fiscal Impact 4153 2021 Brilliant 100 Policy Option C •Maintain Brilliant 100 cost at parity with PG&E for 2021 but Brilliant 100 to all customers effective Jan 1, 2022 •Exception of voluntary opt-ins from Tracy, Pleasanton, and Newark •Fiscal Impact Detailed 5154 2021 Brilliant 100 Policy Option C Fiscal Impact Assessment: $1.85m to serve existing Brilliant 100 in 2021 •Brilliant 100 costs estimated to cost approx. $2.70/MWh more to procure than Bright Choice: –Brilliant 100: $14.5 x 36% (RE) + $5.0 * 54%(Lhyd) + $0 * 10%(PG&E Allocation Share) = $7.92 Adder –Bright Choice: $12.7 x 41% (RE) + $0 *10% (PG&E Allocation Share) = $5.21 Adder –With energy and overhead costs, Brilliant 100 is 4.6% more expensive than Bright Choice, while only priced at 1% more than Bright Choice. This equates to 3.6% higher Brilliant 100 cost not recovered in rates, which means that 78% of the Brilliant 100 premium should be treated as incremental costs. •Brilliant 100 projected to create an incremental cost in 2021 of $1.85m to serve current Brilliant 100 customers –Brilliant 100 2021 load projection: 875,000 MWh –$2.71 * 78% * 875,000MWh = $1.85m •Brilliant 100 incremental costs scale up with each additional MWh, so if new customers or communities join Brilliant 100, costs to EBCE rise. For example, if Dublin/Pleasanton and Berkeley were to opt all accounts onto Brilliant 100 for 2021, that would result in an unfunded increase in procurement costs of $1,895,400 –Brilliant 100 Cost Premium ($2.70) * Unfunded share of Brilliant 100 costs (78%) * Approx Dublin/Berkeley/Pleasanton Load (900,000 MWh) = $1.90m 6155 East Bay Community Energy Renewable and Carbon-Free Electricity January 12, 2021 Presentation Overview •Brief Climate Action Plan 2030 and Beyond overview, including greenhouse gas (GHG) emissions reductions goals. •Discuss the electric power portfolios offered by East Bay Community Energy (EBCE). •Provide an overview of the proposed approach to meeting Measure CF-1 in CAP 2030. Climate Action Plan •City Council adopted Climate Action Plan 2030 and Beyond (CAP 2030) on September 15, 2020. •CAP 2030 includes actions to: –Reduce greenhouse gas emissions by 40%below 1990 levels by 2030, and –Put the City on the path to reach carbon neutrality by 2045. CAP 2030 Goals The five strategies are: 100% Renewable and Carbon-Free Electricity Building Efficiency and Electrification Sustainable Mobility and Land Use Materials and Waste Management Municipal Leadership Measures Included in CAP 2030 are 22 measures under five strategies to reach the City’s climate goals. GHG Emissions Reductions EBCE Power Portfolios •East Bay Community Energy offers three electric power portfolios: –Bright Choice,which is offered at a slight discount to Pacific Gas &Electric’s (PG &E) standard rate but is not 100% carbon-free. –Brilliant 100,which is carbon-free and had been offered at rates on par with PG&E. –Renewable 100,which is both 100%carbon-free and renewable and is offered at a slight premium to PG&E’s rates. Renewable 100 •Renewable 100 is the only portfolio offered that fulfills Measure CF-1 to opt-up to 100% carbon- free and renewable electricity. •The premium is approximately $0.01 per kilowatt- hour. –$3 to $4 per month for the average residential bill. –$15 per month for the average small commercial customer. –Impact on large commercial customers much greater. Measure CF-1 Proposal •Opt-up residential customers as soon as feasible. –California Alternate Rates for Energy, Family Electric Rate Assistance program, and medical baseline residents would remain on the Bright Choice power portfolio. •Commercial and industrial customers remain on Bright Choice for at least a year. –Encourage voluntary opt-ups. Electric Power Accounts Number of Accounts Associated Electricity (kilowatt-hours) Associated 2025 GHG Emissions Residential 23,800 134,000,000 (53.6%)13,681 MT CO2e Non-Residential 2,200 116,000,000 (46.4%)11,844 MT CO2e Totals 26,000 250,000,000 25,525 MT CO2e Next Steps •If City Council approves the Resolution, EBCE will consider the City’s request at an upcoming EBCE Board meeting. •If the EBCE Board approves the request,there will be at least a six-month transition period. •During the transition period, robust community outreach regarding the opt-up will occur. Staff Recommendation Adopt the Resolution Requesting East Bay Community Energy Enroll City of Dublin Residential Accounts in Renewable 100 as the Default Electricity Product.