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HomeMy WebLinkAbout70-21RESOLUTION 70-21 A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS APPROVING THE IMPLEMENTATION OF A REVISED CLIMATE ACTION PLAN WHEREAS, climate change is a real and increasingly urgent threat that demands action at every level of government; and WHEREAS, the Town of Los Altos Hills joined the U.S. Mayors Climate Protection Agreement to reduce Greenhouse gas (GHG) emissions through City Council Resolution 45-06 on June 8, 2006; and WHEREAS, the City Council unanimously voted to join the ICLEI Membership to enact policies and guidelines to reduce GHG emissions, through the implementation of a Climate Action Plan (CAP), through City Council Resolution 18-08 on March 13, 2008; and WHEREAS, the City Council unanimously voted to enact an updated CAP, through City Council Resolution 92-16 on December 15, 2016; and WHEREAS, in 2016, the State of California enacted Senate Bill (SB) 32 to require greenhouse gas emissions to be reduced to 40 percent below 1990 levels by 2030; and WHEREAS, in 2018, Governor Brown signed Executive Order (EO) B-55-18 which calls for California to achieve carbon neutrality as soon as possible, and no later than 2045; and WHEREAS, based upon the latest available data, 46 percent of Los Altos Hill's local greenhouse gas emissions came from onsite Natural Gas combustion in our homes; and WHEREAS, the Town gained access to abundant 100% GHG free electricity by joining the Silicon Valley Clean Energy Authority (SVCEA) through City Council Resolution 1I- 16 passed on January 27, 2016; and WHEREAS, without significant reductions in Natural Gas combustion within buildings, Los Altos Hills will not be able to achieve its GHG reduction targets; and WHEREAS, the City Council has identified electrifying buildings as a necessary strategy to achieve the Town's GHG reduction targets and tools action to reduce future Natural Gas emissions by adopting REACH building codes requiring clean electric water and space heating through Ordinance 589 effective March 19, 2020; and WHEREAS, onsite Natural Gas combustion is known to lead to elevated levels of harmful indoor air pollutants, and, according to a study published in the International Journal of Epidemiology in December 2013, gas cooking increases the risk of asthma in children; and Resolution 70-21 Page I WHEREAS, Natural Gas infrastructure and pipelines contribute to the risk of fires and explosions such as the 2010 San Bruno pipeline explosion, with the risk magnified in cases of major earthquakes; and WHEREAS, climate disruption is being fueled by the burning of fossil fuels, including natural gas, oil, and coal, and the disruption is already having devastating impacts on those who can least afford it and are least responsible for the problem; and WHEREAS, a clear end date for Natural Gas empowers building owners and residents to start malting plans, provides market predictability to encourage service providers to invest in growing electrification capabilities and workforce development and enables the gas utility PG&E to plan system work in alignment with local policy; and WHEREAS, full migration off Natural Gas in Los Altos Hills by 2045 will provide the impetus for incentives for building electrification retrofits, such that it will be, easier for existing buildings to become all -electric; and WHEREAS, on 10/14/2021 the Town's Environmental Initiatives Committee voted to recommend to the City Council a revised CAP be implemented to, at minimum, meet State emissions goals established in SB32 and EO B-55-18, attached herein as "Exhibit A" and "Exhibit B"; and NOW, THEREFORE, IT IS HEREBY RESOLVED THAT the City Council of the Town of Los Altos Hills approves implementation of the revised CAP. The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on 21 st of October 2021 by the following vote: AYES: Tanitha, Tyson, Molt, Schmidt, Swan NOES: None ABSENT: None ABSTAIN: None ATTEST: Deborah L. Padovan, City Clerk By: Kavita Tankha, Mayor Resolution 70-21 Page 2 Exhibit A Resolution 70-21 Page 3 Why Climate Adodlon Plan Time to act is now! Resolution 70-21 Page 4 Whym California Targets Resolution 70-21 Page 5 CUrnate Action Kan— Step 2 & 3 - ICLEI 5 step process Leadership it completed First loop in 2015 commitment 4 in 2009 Next in 2021 Climate Action Plan Presented by EIC - October 2021 Resolution 70-21 Page 6 Resolution 70-21 Page 7 What? Resolution 70-21 Page 8 o w? Resolution 70-21 Page 9 What it includes Resolution 70-21 Page 10 Climate Action Plan Presented by EIC - October 2021 Resolution 70-21 Page 11 Limited & Slow Now I Incentives tions/ man For a comprehensive response Electrification Replace on burnout ordinance (Menlo Park Half Moon Bay) • All -el c reach code covering remodels (current co s only for new buildings) • Houses sold ha be electrified within one year of purchase • Increased local tax on natu as (e.g. Utility Users Tax) • Increased permits/fees on gas applian Climate Action Plan Presented by EIC - October 2021 Resolution 70-21 Page 12 Resolution 70-21 Page 13 11 .• •1 • . • Name Description Estimated GHG Savings Battery Install Storage to match PV Production to Town Minimal, but demonstrates critical new technologies. Storage Hall loads Town Hall Convert the natural gas loads at town hall to 32 MT reduction (17% below BAU) Electrification electric V2G Town Vehicle To Grid for resiliency pilot Minimal, but demonstrates critical new technologies. Green Fleet Program with "EV First" Green Fleet 13 MT reduction (7% below BAU) commitment EV Charging Free EV charging for town staff 19 MT reduction (10% below BAU) Renewable Town Government and Fire District shift to 54 MT reduction (29% below BAU) Diesel renewable diesel Cumaie /Acuon Pian Presented Dy tit, - uctooer 2021 Resolution 70-21 Page 14 12 • For residents: NUDGE o A combination of measures to maximize savings ■ Assist with migration off natural gas ■ Educate • on emissions (e.g. air travel) and solutions • available technologies and funding sources to help with the migration m Provide firm longterm guidance to nudge laggards For Foothill, SVCE and PG&E: COLLABORATE o Encourage policies& programs for electrification Climate Action Plan Presented by EIC -October 2021 Resolution 70-21 Page 15 13 �Ta U: �rt: &-I t I Name Description Estimated GHC Savings Town funded walkthrough electrification High. Reduction of 7,200 MT CO2e in 2030 Assessments consultant (low cost or free) (7% below BAU) Simplify city permitting processes and Medium. Reduction of 2,500 MT CO2e in Streamline reduce fees for electrification conversions 2030 (3% below BAU) Join in promoting the "BE Smart" program Small. Reduction of 1,200 MT CO2e in Financing (tariff on -bill financing) to SVCE 2030 (1% below BAU) Provide incentives & programs to eliminate High. Reduction of 9,500 MT CO2e in 2030 Incentives natural gas use in buildings by 2045 (9% below BAU) Climate Action Plan Presented by EIC - October 2021 Resolution 70-21 Page 16 14 2045 • 2031 to 2045: o Develop plans for electrifying the toughest cases o Accelerate work with PG&E on branch pruning opportunities o Assess remaining GHG emissions to get to net zero Climate Action Plan Presented by EIC -October 2021 Resolution 70-21 Page 17 15 49% reduction in GHG -Community Cost $820K over 10 years $300,000 $200,000 $100,000 0 Renewable Diesel 0 EV Charging EM Green Fleet 0 V2G M Town Hall 0 Battery Storage 0 Incentives M Financing N Streamline N Assessments 16 Resolution 70-21 Page 18 52% reduction in GHG -Community Cost $1.2M over 10 years $300,000 $200,000 $100,000 (tn 41P rp ,r� fV r� e< << << <1 IM Renewable Diesel ■ EV Charging EE1 Green Fleet 0 V2G M Town Hall N Battery Storage N Incentives N Financing 0 Streamline M Assessments 17 Resolution 70-21 Page 19 .•• !Ki w N 0 U H 200 Government BAU — — 2030 CA Goal Government CAP 2010 2015 2020 Climate Action Plan Presented by EIC - October 2021 2025 2030 Resolution 70-21 Page 20 ss CAP Projections: Community Community BAU --w 2030 CA Goal — Community Moderate CAP Community Aggressive CAP 125000 100000 I U-1 75000 0., F- 50000 i 25000 j 0 I I 2005 2010 2015 2020 2025 2030 Climate Action Plan Presented by EIC - October 2021 Resolution 70-21 Page 21 19 SF (2035) Menlo Park (2030) Palo Alto (2030) M INS IN SF (2030) LAH: Aggressive (2030) LAH: Moderate (2030) Mountain View (2030) Climate Action Plan Presented by EIC -October 2021 Resolution 70-21 Page 22 20 ZMEMPS"A Resolution 70-21 Page 23 Resolution 70-21 Page 24 Snow making equipment fighting Tahoe fires Climate Action Plan Presented by EIC -October 2021 Resolution 70-21 Page 25 23 Resolution 70-21 Page 26 Measure Cost by Year (4g% option) Assessments $0 $11,100 $22,200 $33,300 $44,400 $55,500 $66,600 $77,700 $88,800 $100,000 $500,001 Streamline $0 $1,100 $2,200 $3,300 $4,400 $5,500 $6,600 $7,700 $8,800 $10,000 $50,001 Financing $0 $( Incentives $0 $5,600 $11,200 $16,800 $22,400 $28,000 $33,600 $39,200 $44,800 $50,000 $250,00( Battery Storage $0 $( Town Hall Electrification $10,000 $20,000 $20,000 $50,00( V2G $0 $10,000 $10,00( Green Fleet $4,000 $3,200 $2,800 $2,400 $2,000 $1,600 $1,200 $800 $400 $0 $20,001 EV Charging $0 $1,100 $2,200 $3,300 $4,400 $5,500 $6,600 $7,700 $8,800 $10,000 $50,001 Renewable Diesel $0 $400 $800 $1,200 $1,600 $2,000 $2,400 $2,800 $3,200 $4,000 $20,001 Resolution 70-21 Page 27 Community Measure costs for Aggressive case (52% reduction by 2030) Assessments $0 $11,100 $22,200 $33,300 $44,400 $55,500, $66,600 $77,700 $88,800 $100,000 $500,000 Streamline $0 $1,100 $2,200 $3,300 $4,400 $5,500 $6,600 $7,700 '$8,800 $10,000 $50,000 Financing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Incentives $0 $14,400 $28,800 $43,200 $57,600 $72,000 $86,400 $100,800 $115,200 $130,000 $650,000 $1,200,000 Climate Action Plan Presented by EIC - October 2021 Resolution 70-21 Page 28 26 Alternate visualization of Gov't Ops targets BAU 100 base 2030 CA Goal Government CAP 200 ------ --.__--i-- — —- 150 D I Q m 100 0 0 .N I E i 50 0 I I 2020 2022 2024 2026 2028 2030 Climate Action Plan Presented by FIC - Uctober 2U21 Resolution 70-21 Page 29 27 Alternate visualization of Community targets 125 a 100 0 4 m 75 N C O N N E 50 c E 0 25 U 0 Community BAU — — 2030 CA Goal Moderate CAP — Aggressive GAP 2020 2022 2024 2026 2028 2030 Climate Action Plan Presented by EIC - October 2021 Resolution 70-21 Page 30 28 CAP Projections: Community (-air travel 29 V11111d LCHL.LIU11i'Idll PICbCIILCUUYCI%_-VL.LUUCI LUG.L Resolution 70-21 Page 31 GHG (-air) 2030 CA Goal (-air) — Community Moderate CAP Community Aggressive CAP 100000 75000 LU 0 i 50000 1 ___-- __ -- _____ ____ - 25000 0 2005 2010 2015 2020 2025 2030 29 V11111d LCHL.LIU11i'Idll PICbCIILCUUYCI%_-VL.LUUCI LUG.L Resolution 70-21 Page 31 Alternate visualization of Community targets Community BAU, 2030 CA Goal (-air), Moderate CAP and Aggressive CAP 126 100 75 50 25 — Community BALI — Moderate CAP — Aggressive CAP — — 2030 CA Goal (-air) - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0i t 2020 2022 2024 2026 2028 2030 30 Resolution 70-21 Page 32 Exhibit B Los Altos Hills Environmental Initiatives Committee 2021 CAP Subcommittee 2021 CAP Measure Descriptions This document describes the measures in the LAH 2021 Climate Action Plan. The Los Altos Hills Environmental Initiatives Committee (EIC) is recommending that the town adopt CAP targets of reducing our town's emissions by 49% below 2005 levels by 2030. Council may also approve a more aggressive option that would increase reductions to 52%. Our target recommendation comes from the Greenhouse Gas Inventory that was completed by the town -appointed contractors in 2020. EIC expects that if the town continues Business As Usual, town emissions will be 36% below 2005 levels, below state mandates and IPCC recommendations. As a town we should do our part to reduce global warming. We outline nine measures that we believe are cheap, easy and will get us to the goal. The measures that we are recommending come in two sets: Four town -wide measures and Six measures for municipal operations. l 1. Reduce town -wide emissions 49% (or 52% -- see measure 4) below 2005 levels by 2030. 2. Reduce municipal emissions 88% below 2005 levels by 2030. To put this in context, California law requires that the state reduce its greenhouse gas emissions to 40% below 1990 levels by 2030 (equivalent to 49% below 2005 levels). Our neighboring town of Palo Alto has a far more aggressive goal of reducing their emissions to 80% below 1990 levels by 2030. Menlo Park intends to reduce all their emissions to 0 by 2030. San Francisco recently decided to cut their emissions to 0 by 2035. Our goals are more modest, but take into account our town's unique features as a small town of limited resources. Resolution 70-21 Page 33 TOWN -WIDE MEASURES These four measures apply to the entire town (1) Assessments: Town funded walkthrough electrification consultant (low cost or free) Description Similar to the HIZ (Home Ignition Zone) wildfire inspections now being discussed, this measure would subsidize "electrification walkthroughs" by experts, to inform homeowners on their specific opportunities for electrifying their existing gas appliances. Note this service may be possible to do virtually, similar to Palo Alto's Home Genie program (run by CLEAResult and described here: https.//www.citygfpaloalto.org/News-Articles/Utilities/The-Horne-Efficiency-Genie-is-Now-Virtual) Specific tasks could include: • Recording the age and expected replacement date for existing gas appliances. • Identifying problems with the existing gas appliances that could be mitigated with electric replacements. • Identifying any home -specific challenges related to electrification. • Analyzing the home's current heating and cooling systems, in order to identify any updates needed before electrification. • Assessing the home's electrical system, and whether panel upgrades would be required. • Development of a plan for electrification of all natural gas appliances in the home. Analysis • Our BAU analysis indicates that heat pump water heaters (HPWHs) and heat pump space conditioners (HPSCs) will achieve 22.5% penetration in LAH homes by 2030. This implies a total of 675 homes will use heat pumps for heating and cooling by 2030. • We estimate successful implementation of this measure will increase that penetration by 13% (to 35.8%) by 2030, resulting in an additional 400 homes electrified. • This would decrease our GHG emissions in the residential natural gas sector from 32,210 to 27,617 MT CO2e in 2030, a savings of 4,593 MT CO2e. • Estimated cost of $500,000 between 2021 and 2030. Costs will start at zero and are expected to increase until 2030. Using an estimated total measure cost of $100,000 in 2030, this measure would result in a cost of $22 per MT of CO2e eliminated. • See Scenario #3 in the "HP Forecast" sheet of the attached "LAH CAP" spreadsheet for details. Resolution 70-21 Page 34 (2) Streamline: Simplify city permitting processes and reduce permit fee for electrification conversions Description The town has adopted an ordinance requiring electric (heat pump) space and water heating in new construction to reduce GHG emissions from natural gas combustion. However, existing homes presently represent the vast majority of such emissions. The goal of this measure is to facilitate conversion of space and water heating devices from natural gas to electric (heat pump). Per the town's July 6, 2020 Building Department Fee Schedule (https://www.losaltoshills.ca.gov/DocumentCenter/View/3611/Fee-Schedule---Building- PDF?bidld=), a like -for -like furnace or water heater replacement requires an $82 building permit. An electrification conversion almost certainly involves both plumbing and electrical work, and would require a MEP (mechanical, electrical, and plumbing) permit with a base fee of $180 plus 0.9% of the project cost. It is not clear if separate permits are required for the plumbing work and the electrical work. This measure proposes a new "electrification conversion" permit for furnace and/or water heater replacement from natural gas to electric. This permit would affirmatively include both plumbing and electrical work associated with the project, simplifying the process for the applicant. The permit fee would be fixed at, say, the $180 base MEP permit fee, with no project value escalator, to avoid creating an additional barrier for complex projects. Analysis • We estimate a heat pump water heater (HPWH) conversion to save 1.9 MT CO2e/year in GHG emissions and a heat pump space conditioner (HPSC) conversion to save 3.5 MT CO2e/year in GHG emissions (these involve some assumptions for usage, efficiency, etc.). • Every 10% of LAH homes that complete both conversions represents 1,620 MT CO2e/year in reduced GHG emissions (based on 300 homes). • These conversions have a high up -front cost. We estimate a HPWH conversion to cost $2,500 and a HPSC conversion to cost $13,000. If a main panel upgrade is required this could be an additional $5,000. o Incremental conversion costs relative to a like -for -like replacement are much lower and pay for themselves in energy savings in a few years o Value -based permit fees are based on the upfront cost. These would represent a small but real disincentive for these conversions Resolution 70-21 Page 35 (3) Financing: Join in promoting the "SE Smart" program (tariff on -bill financing) to SVCE Description The town has adopted an ordinance requiring electric (heat pump) space and water heating in new construction to reduce GHG emissions from natural gas combustion. However, existing homes presently represent the vast majority of such emissions. The goal of this measure is to facilitate conversion of space and water heating devices from natural gas to electric (heat pump). An electrification conversion almost certainly involves both plumbing and electrical work. In some instances the new load will require an upgrade to the home's main electrical panel. So incremental costs relative to a like -for -like natural gas device replacement can run into the thousands of dollars. Even though these incremental costs pay for themselves through energy savings in a few years, they represent a significant barrier to such conversions. Carbon Free Palo Alto (CFPA) takes the position that it is unrealistic to cover these costs with rebates. They propose what is called tariffed on -bill financing (TOB). The electricity retailer or utility uses its access to low-cost, long-term capital to finance the up -front cost of the electrification conversion, and the customer pays off the financing as an additional tariff on their bill (that is, not personal debt) over the lifetime of the device. Possibly the tariff can be applied to the new customer if the home changes hands. CFPA says this approach has been shown to have very high adoption rates when applied to energy efficiency upgrades. See: https://docs.google.com/document/d/lsFzdJTbf2LvkbbupuCuCcwpGXxxfFvBYvV5WWQMOp90/ edit The Town of Los Altos Hills is a participant in Silicon Valley Clean Energy in large part to facilitate such utility programs for its residents. This measure proposes that the town use its influence through the SVCE board to make the establishment of TOB financing for SVCE customers a priority, to facilitate electrification conversions in the immediate term, such as being enabled by GoodLeap com. For our goals we need this in place basically right away. We believe our residents will be much more open to electrification conversions if they are told that there is no incremental cost that must be paid upfront, even if in the end they choose not to use this financing. Analysis • We estimate a heat pump water heater (HPWH) conversion to save 1.9 MT CO2e/year in GHG emissions and a heat pump space conditioner (HPSC) conversion to save 3.5 MT CO2e/year in GHG emissions (these involve some assumptions for usage, efficiency, etc.). • Every 10% of LAH homes that complete both conversions represents 1,620 MT CO2e/year in reduced GHG emissions (based on 300 homes). Resolution 70-21 Page 36 • These conversions have higher costs than like -for -like natural gas device replacements. We estimate a HPWH conversion to cost an incremental $1,000 and a HPSC conversion to cost $1,200. If a main panel upgrade is required this could be an additional $5,000. • These incremental costs represent a significant disincentive for these conversions, so access to low- or zero -interest loans would help reduce barriers, whether or not the loans were actually used.. 4 Incentives: Provide path to eliminate natural gas use in buildings by E045 Description LAH Council will adopt a resolution to phase out all natural gas use in LAH by 2045, sending a clear signal to residents that our town has embraced electrification to take full advantage of SVCE's clean electricity. Examples of similar forward looking mandates cover _gasoline cars in California by 2035, .gas boilers in the UK by 2025, and the 2010 SmartRegs in Boulder to make rental properties more efficient). The Council will direct Staff and the EIC to design and implement a number of low-cost policies over the coming years to assist all residents achieve this goal as quickly and efficiently as possible., Precedence: Related forward-looking policies: • 2020 ban on gasoline cars in California by 2035 • Ban on gas boilers in the UK by 2025 • The 2010 SmartRe sg in Boulder mandating efficient rental properties by 2018 • Oakland's 2020 CAP includes getting off natural gas by 2040 • Half Moon Bay's draft ordinance targets capping all natural gas lines by 2045. Policies to be considered by Staff and EIC could include: • Town -wide education webinars on electrification, with local examples • Award additional development area (500 sf?) to all -electric homes • Offer incremental incentives on heat pumps, induction cooktops, dryers, and other electric devices (supplementing similar incentives from SVCS, BayREN and others) • Organize volume discounts offered by local electrification contractors • Help identify homes that are most appropriate for electrification early, deferring more challenging cases as technologies improve • Recommend electrification tools & services (both online and in-home) • Consider electrification requirements at time of sale • Adopt ordinance requiring that no later than January 1, 2045, all buildings within the town shall be converted to All -Electric Buildings and all Fuel Gas plumbing lines shall be capped and/or decommissioned • Establish procedures for conversion of remaining buildings no later than January 1, 2044 • Prohibit reconnection to gas service, once a home is fully electrified, allowing PG&E to Resolution 70-21 Page 37 promote neighborhood branch pruning • Adopt "Replace on Burnout" ordinance for gas appliances, if adopted by other local cities Analysis • Our BAU analysis indicates that heat pump water heaters (HPWHs) and heat pump space conditioners (HPSCs) will achieve 22.5% penetration in LAH homes by 2030. This implies a total of 675 homes will use heat pumps for heating and cooling by 2030. • We estimate successful implementation of this measure would increase that penetration to 42.5% by 2030, resulting in an additional 600 homes electrified. • This would decrease our GHG emissions in the residential natural gas sector from 32,210 to 25,340 MT CO2e in 2030, a savings of 6,870 MT CO2e. • Estimated cost of $250,000 between 2021 and 2030. Costs will start at zero and are expected to increase linearly until 2030. Using an estimated total measure cost of $50,000 in 2030, this measure would result in a cost of $7.28 per MT of CO2e eliminated. • This is the only measure that would change as a result of the council selecting the more "aggressive" option of 52% reductions. If selected, the figures above would change as follows: o From 42.5% penetration to 50.9% (from 600 homes to 850 homes) o Savings would increase from 6,870 to 9,800 MT CO2e o Total cost would increase from $250,000 to $650,000.($130,000 spent in 2030.) o Cost per MT of CO2e would increase from $7.28 to $13.27. • See Scenario #2 (recommended) or #9 (aggressive) in the "HP Forecast" sheet of the attached "LAH CAP" spreadsheet for details. Resolution 70-21 Page 38 MEASURES FOR MUNICIPAL OPERATIONS These five measures apply to Town Hall, Town Staff, and other Municipal Operations only. (a) Battery Storage: Install storage to match PV production to Town Hall loads Description Town Hall produces solar energy from its 50 (?) kW PV system. The surplus solar energy produced during the day is fed into the Grid. Given the degree of curtailment of solar in the state of CA, it is quite likely that the surplus solar energy from Town Hall is not helpful to balancing the grid. Town Hall should update its PV Solar system by combining it with a Battery Storage system so that the excess `clean' solar energy can be stored for use later in the day when the Town Hall's load will otherwise draw on `dirty' energy that is delivered through the Grid. Analysis • Town Hall consumed 103 MWh of electricity in 2018; 67 MWh came from the Town Hall PV and 37 additional MWh was grid electricity provided by SVCE • Need data to understand Rated capacity of current PV system and the split between Daytime and Nighttime loads in Town Hall to size the storage requirement for night loads • The Town Hall is implementing a resiliency solution using storage for back-up purposes; storage should be sized instead to support ongoing night load in additions to supporting emergency back-up needs; daytime load can be supported primarily by SVCE which ensures that the energy sources are clean • If Town Hall put together an integrated solution for sustaining its entire load with clean energy using PV and Storage, it will serve as a useful model for LAH residents to replicate the design and results; LAH already has one of the highest adoption rates in CA for rooftop PV and integrating storage would represent an upgrade that the residents will gladly pursue. (b) Town Hall Electrification: Convert the natural gas loads at town hall to electric Description Town Hall has continued to depend on natural gas burners for water heating and space heating. With a view to inspiring total electrification of the town, the town must first show that it can eliminate the need for gas powered appliances within our town's own facilities, including Town Hall. Additionally, when Town Hall converts its load to be all -electric, it can demonstrate that the Resolution 70-21 Page 39 gas supply to Town Hall could be permanently turned off and thus obviate the need for expensive gas pipe maintenance. Analysis 1. In 2018, the last year for which it was estimated, Natural gas usage by Town Hall was 2,332 Therms and that equates to over 29,000 lbs of equivalent CO2 emissions 2. While the details of the load profile driving the natural gas load are yet to be determined, it seems safe to assume that switching the gas furnaces for space and water heating with Electric Heat Pump alternatives would potentially eliminate the entire GHG emissions resulting in a further 4.5% contribution towards CAP goals for GHG reduction 3. Elimination of gas appliances and upgrading to their electrical equivalents is not merely an environmentally cleaner choice but can also be cost effective (E3 report here; see page 49) 4. The knowledge base developed through Town Hall electrification can be used to educate the residents and provide them the contacts with contractors that can be helpful in their pursuit of electrification of their own homes - greater and quicker adoption of electrification and renunciation of natural gas can create the economies of scale and thus power a virtuous cycle of total electrification 5. An additional long term benefit of total electrification of the Town Hall load is that the gas line serving the Town Hall can be capped off thus pre-empting expensive and impending maintenance 6. Finally, it would send a clear message to town that we are serious about getting Government -driven CO2 emissions down to zero. Description Town designs and installs a V2G system at town hall. Town already owns one battery electric vehicle. Included elsewhere among the recommendations is that town always purchase an electric vehicle where such an option is available. The effect of these will be that town will have substantial energy stored in its vehicles when they are charged (almost certainly by the town's solar array). This gives the town the ability to smooth the load on the grid by drawing stored energy from its vehicles. It will also provide resiliency in case of a power outage. V2G technology is developing quickly these days. Nissan vehicles already have the ability to power the grid. The upcoming electric Ford F-150 will also support bi-directional charging. Tesla is believed to be developing such technology for its vehicles also. Analysis The V2G would not save much in terms of CO2. There are two small sources of savings: Resolution 70-21 Page 40 • To the extent that it will replace electricity consumption during hours when clean electricity is unavailable on the grid. • In case of a power outage, it would make the (carbon -powered) generator a stand-by option to the battery. More importantly, however, just as the solar panels next to town hall set a great example for town residents on moving to PV, a V2G grid would set a great example on the next frontier. Town residents are already leading the world in conversion to electric vehicles. We can also lead the world in V2G installations. LAH town government should lead the way. Cost might be around $10,000 beyond the cost of a V2G-capable EV, like the Ford F150. (d) Green Fleets Green fleet program with "EV First" commitment Description Consistent with the direction pursued by the Federal and State Governments, Los Altos Hills should pursue the complete electrification of its fleet of vehicles. It may not be economically feasible in the short term to replace perfectly serviceable vehicles in the fleet with EVs. In some instances the EV is not even available to perform the functions required of its gas / diesel powered counterpart. This recommendation suggests that the Town Hall should emphatically adopt the policy to convert its fleet to electric and as such should consider the EV alternative first, when replacing an existing vehicle or acquiring a new vehicle. The recommendation also says that the EV alternative for replacing a gas vehicle may be more expensive in the near term but should be preferred if the cost differential can be offset by the benefits of reduced GHG and attainment of CAP goals. Analysis • Town Hall currently owns one EV out of a fleet of 20 vehicles 7 of which are powered by gasoline and 12 by diesel • The estimated GHG emission is 24 MT CO2e in 2018, the last year for which it was estimated. This represents a 29% reduction in GHG from the baseline of 2005 (34 MT) and is at 97% towards accomplishing the target for GHG reduction by 2025 of 30% set in 2015 • However, the fleet is quite old - the typical age of a fleet vehicle is 15 years - and it would suggest that given the general life expectancy of a vehicle, most of these 19 vehicles will be coming up for replacement within 2 - 5 years • A token deposit of $100 ea for a few Ford Electric trucks to replace the existing gasoline Ford trucks may be a good way to initiate this process at a relatively low up -front cost • Finally, it sets a great example to all the residents and other towns in the Valley. Resolution 70-21 Page 41 (e) EV Charging: Free EV charging for town staff Description Town provides free EV charging for town staff to charge their vehicles while they are at work in town hall. Employee commutes contributed 39 metric tons of CO2 in 2018. This is 13% of our Government's Carbon footprint. Town staff commute a long distance to work, on average 26 miles a day, 7 of them 40 or more miles every day (per 2018 inventory). With increasing gas prices, providing staff with free charging would be a great incentive that encourages them to switch to electric vehicles. Analysis • Eliminating CO2 from employee commutes would cut 13% of the town government's carbon footprint. ® Town staff commutes consumed over 4,000 gallons of gasoline in 2018. Providing free charging would provide a benefit of at least $16,000 to town staff, quite a bit more since there might be other errands that they run during their commutes. • The 125,000 total miles traveled annually by town staff during their commutes would use about 50,000 kWh of electricity. This represents an annual cost of about $10,000 to town. • . If town were to build a V2G system at town hall, all the electric vehicles owned by town staff would be a part of it thus strengthening the town hall V2G. ® This would send a clear message to town that we are serious about getting Government - driven CO2 emissions down to 0. ® Finally, it sets a great example to all other employers, including other towns in the Valley. 1111;111�1�111ljiijji 111! TORN Description Biodiesel is a drop-in replacement for conventional diesel. It is the same chemical, except that it is manufactured from renewable sources rather than dug out of the ground. It is thus a renewable resource, and its carbon footprint is about 90% lower than that of conventional diesel. It is slightly more expensive than conventional diesel, but not overly so. Being chemically identical to diesel it can be used with no changes to existing equipment, and can also be switched out should an emergency require us to go back to using conventional diesel. GreenWaste already uses biodiesel (Propel HPR) in all their trucks that serve Los Altos Hills. There is no reason for both the town government and the fire district not to immediately switch over to biodiesel for all the diesel vehicles in their fleet. Town Hall also has a diesel generator on standby for power outages which should also be switched over to biodiesel. Resolution 70-21 Page 42 Analysis • Eliminating diesel from the town fleet would cut our municipal CO2 emissions by 3%. Eliminating diesel from the fire district's fleet would cut our municipal CO2 emissions by a further 27%. Taken together there is a 30% saving available for the taking, • Town municipal equipment consumed 720 gallons of diesel in 2018, the peak was in 2015 when it consumed 1,135 gallons. At a conservative $0.50 premium per gallon, the financial impact on the town is in the hundreds of dollars annually. • Fire district equipment consumed 5,733 gallons of diesel in 2018, the peak was in 2016 when the district consumed 6,180 gallons of diesel. The financial impact on the district would be in the region of $3,000 annually. ® For an expenditure of less than $4,000 annually, and no upfront capital costs, our town government can reduce its CO2 emissions by about 30% with immediate effect. [END] Resolution 70-21 Page 43