Title
Adoption of Resolution Adopting the Equitable Building Decarbonization Plan.
This action is statutorily exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to actions that have the potential to cause a significant impact on the environment. (City Manager 10021032) [Not heard on October 4, 2022]
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The Equitable Building Decarbonization Plan (Plan) presents a long term plan and process for shifting natural gas use in existing buildings toward clean, energy efficient all-electric buildings in accordance with the City of Alameda’s (City) climate and equity goals. The Plan provides a phased approach for community education and participation in the development of new policies and programs, financing options, and expanded rebates to incentivize electrification of Alameda building stock. The Plan aligns with other Citywide efforts to create affordable, safe, healthy and resilient housing and prepare the City to leverage state and federal grants and funds as they become available.
BACKGROUND
The Climate Action and Resiliency Plan (CARP) set goals to reduce emissions by 50% below 2005 levels and achieve carbon neutrality as soon as possible. The Climate Emergency Declaration set the ambitious goal of achieving carbon neutrality by 2030. Alameda Municipal Power (AMP) laid a strong foundation for building decarbonization by providing 100% clean, carbon free electricity since 2020. Currently, 70% of Alameda’s greenhouse gas (GHG) emissions come from transportation, 27% from natural gas use in buildings, and three percent (3%) from other sources such as waste, water, and wastewater. To reach the City’s carbon neutrality goal, net zero emission buildings that do not burn natural gas are an essential strategy and the focus of this Plan. With 100% clean electric energy provided by AMP, electrifying all existing buildings would eliminate 27% of GHG emissions associated with natural gas use in buildings. The City Council has already taken initial steps towards reducing building emissions by requiring all new development to be all-electric in 2021. The all-electric requirements were expanded in 2022 to include substantial alterations and additions.
The 2021 CARP Annual Report, accepted by City Council at its March 5, 2022 meeting, identified developing an equitable existing buildings energy efficiency and electrification roadmap as one of the priorities for CARP implementation in 2022. The Plan is the roadmap and provides a phased approach that includes recommended policies and programs, financing options, and community education and outreach to decarbonize existing buildings over time.
DISCUSSION
The Plan recommends a process for working with the Alameda community to equitably implement the needed programs, policies, community education and financing by 2030 to decarbonize existing buildings by shifting from natural gas use towards energy efficient, all-electric buildings. The Plan includes three phases: Immediate (2022-2023), Near Term (2024-2025), and Long Term (2026-2030). Each phase includes:
• Education and Outreach: Provide the community with the knowledge of energy efficiency and electrification technology and the process involved and equip community members to engage in policy co-creation.
• Policies and Programs: Develop a suite of policy options and programs to target different points of intervention such as the permit process, appliance end of life, and others.
• Financing and Funding: Identify financing mechanisms to reduce barriers to electrification through raising new revenue or taking advantage of bill savings.
• Alameda Municipal Power: Deliver reliable, 100% clean electric energy and provide programing, rate design, rebates, education and outreach to encourage electrification.
The Plan is based on the following equity principles:
• Everyone, especially low to moderate income households, should be able to affordably switch to modern electric equipment, reducing their energy burden.
• Ensure building decarbonization policies and programs do not have disproportionate impacts on low income households and communities of color.
• Electrification policy should also support healthy, safe, affordable housing and quality, good paying jobs.
• The electrification process should be as simple and seamless as possible.
• The City should act ambitiously and expeditiously while also being realistic about the challenges faced in transitioning Alameda’s buildings.
The Plan relies heavily on community involvement and support. Each phase includes extensive community education and outreach. To date, multiple forms of community engagement have been used to provide education, and incorporate community knowledge and feedback into the draft Plan. Examples include:
• Electrification education materials, including a trilingual one-page electrification information sheet and City website at <https://www.alamedaca.gov/Building-Electrification>
• Seven electrification workshops from March to May 2022 covering:
o Electrification 101 (Hybrid; 2 workshops);
o Roadmap Brainstorm for residential and commercial renters, residential and commercial property managers and owners, and single-family homeowners (Virtual; 3 workshops); and
o Draft Roadmap & Ordinance Review (In-person and virtual; 2 workshops).
• Tabling at Alameda Farmers Market and Old Oakland Farmers Market with English, Spanish, and Chinese electrification information sheets.
• An interactive electrification poster available in the Main Library with take home flyers from April 6-15, 2022.
• An electrification community survey from March 3 - May 6, 2022 in English, Spanish, and Chinese. Received 86 responses.
• Information about Decarbonization Plan and electrification information in emails to “Environment, Sustainability and Climate Action” listserv and City’s social media.
Throughout the public engagement process, staff heard support from the community for the concept and vision of the Plan, as well as the goal of keeping dollars local with AMP. However, concerns were raised regarding the overall cost of implementing the recommended electrification measures and potential impacts on tenants and rent. These issues will need to be addressed and resolved at each phase of Plan implementation. Staff believes a variety of new and existing rebates and tax credits available from a myriad of entities including AMP, Bay Area Regional Energy Network (BayREN), TECH Clean California, and the Inflation Reduction Act and Bipartisan Infrastructure Bill will help. The ongoing community engagement process, continuous education and outreach, as well as ample opportunities for public input before any program or policy is implemented will be critical to the success of the City’s Plan.
The Plan was recommended for adoption by the Planning Board on September 12, 2022 and the Public Utilities Board on September 19, 2022. At its meeting, the Planning Board recommended that the Final Draft of the Plan make the following revisions:
• Changed recommendation in the Immediate phase of the Implementation Plan on pages 5 and 28:
o Explore ordinances requiring certain electrification and energy efficiency measures when renovating or upgrading appliances for already cost-effective electrification measures, with certain exceptions
o Coordinate with Alameda City staff and the Alameda community concerning the impact of electrification on landlords and tenants
• Added a new Equity Principle on pages 4 and 19:
o Ensure building decarbonization policies and programs do not have disproportionate impacts on low income households and communities of color.
These changes are reflected in the draft Plan attached to this staff report.
ALTERNATIVES
City Council may either:
• Adopt the Resolution approving the Plan; or
• Revise the Plan and adopt the Resolution.
FINANCIAL IMPACT
There is no financial impact to the City from approval of the Plan. However, implementation of recommended actions may require contributions from the City that would be subject to future City Council appropriations approval. Staff will seek grant funds to fulfill recommended actions as a first priority. Approval of the Plan does not predetermine or obligate the City Council to make a particular funding decision when it adopts the citywide operating or capital budget.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
Approval of the Equitable Building Decarbonization Plan is statutorily exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to actions that have the potential to cause a significant impact on the environment.
CLIMATE IMPACT
Approval of the Plan will have positive climate benefits by reducing greenhouse gas emissions and indoor air pollution and help achieve key CARP implementation goals.
RECOMMENDATION
Adopt a resolution approving the Equitable Building Decarbonization Plan.
Respectfully submitted,
Danielle Mieler, Sustainability and Resilience Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Equitable Building Decarbonization Plan
cc: Jennifer Ott, City Manager