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HomeMy WebLinkAboutRes 07-78 Enact Policies & Pgrms - Global Emissions CITY OF PALM DESERT OFFICE OF ENERGY MANAGEMENT STAFF REPORT REQUEST; Adopt Resolution No. o�-�s , a Resolution of the City of Palm Desert Pledging to Enact Policies and Programs to Reduce Harmful Global Emissions SUBMITTED BY: Patrick Conlon, Director of O�ce of Energy Management DATE: December 13, 2007 CONTENTS: 1) Resolution No.o�-78a Resolution of the City of Palm Desert Pledging to Enact Policies and Programs to Reduce Harmful Global Emissions 2) California AB32 Information 3) Interoffice Memo from Mark Greenwood, P.E. Public Works Recommendation: Waive further reading and adopt Resolution No. o�-� pledging to enact policies and programs to reduce harmful global emissions. Executive Summary: The proposed Resolution outlines 12 action steps the City can take to do its share in reducing global warming emissions. As this report shows, many of these action steps are already being done in Palm Desert as our normal course of business. The two major tasks ahead, which start in 2008, will be the carbon footprint inventory and action plan for greenhouse gas reduction. This is necessary for compliance with AB32 and development of a green building ordinance. Discussion: The pledge of the Resolution is simple: strive to reduce greenhouse emissions in Palm Desert 7% below 1990 levels by 2012, five years from now. The difficulty is the amount of work the City needs to accomplish to establish how much greenhouse emissions were produced in the City of Palm Desert in 1990, a consulting study will be necessary to determine this and appropriate actions the City needs to take to reduce those emissions. The State of California has adopted different goals in A632, which were signed into law in September 2006. AB32's statewide goals will eventually impact California cities, by requiring them to establish or estimate baseline years' inventory for greenhouse emissions within that city in 1990 and 2000; produce an action plan, that wiN reduce the city's emissions levels to the 2000 level by the year 2010 and 1990 level by the year 2020. Greenhouse Gas Resolution Page 2 of 7 December 13, 2007 Attached is a copy of AB32. One of the differences between the City's Resolution and California AB32 is that the Resolution has a more stringent 5-year goal of reduction of emissions to 7% below 1990 levels by 2012. If the City of Palm Desert can strive to adopt and implement the 12 suggestions outlined in the Resolution, then we will already be in compliance with state law AB32. The following is a discussion item by item on the Resolution. Item #1: "Inventory global warming emissions in City operations and in the community, set reduction targets and create an action plan." This action item is on our "To Do" list. The City needs to establish two baseline years as starting points: 1990 and 2000. Staff will be returning to Council in 2008 with a consultant's proposal to perform a study of our City emissions impact in 1990, 2000 and today so we may set targets and develop an action plan to meet these target emissions. Item #2: "Adopt and enforce land-use policies that reduce sprawl, preserve open space, and create compact, walkable urban communities." Submitted bv Tonv Baqato, Principal Planner. The City of Palm Desert has adopted and encourages policies and programs promoting infill development reducing sp�awl and creating a compact community that can provide for all types of uses and services. Policy 4 of the "Land Use Element" of the City's General Plan states "Every opportunity shall be exploited to enhance the character and viability of the City's commercial areas, including Highway 111, EI Paseo, the University Park planning area and the Interstate-10 corridor, by integrating nearby higher density residential uses with retail and office/business park land uses". This policy identifies the City's priority for development within our city, rather than sprawling outside the City limits. The City also allows higher density residential uses adjacent to and within commercial and office areas that provides a jobs/housing balance, as well as various types of services within the City that create a compact urban footprint. Most of the City's vacant land and area of future growth is located within an area known as the University Park Planning Area. In the General Plan, this will be a compact, walkable community. It provides a maximum of 1,050 acres for commercial and office use with 697 acres of residential land, allowing a maximum of 7,753 units, 272 acres of open space, and 208 acres for public facilities. The area provides for a high-density overlay, that requires higher density projects to be in close proximately to public transportation, commercial, office and open space areas. In addition to this policy, the City has adopted and enforced land use principles that limit development on the hillside area and encourages cluster development to create more open C�Documents and Settings\�Stanley�Local Settings\Temporary Intemet Fiies\OLK58\Greenhpuse Gases Resolution SR 12-73-07 doc Greenhouse Gas Resolution Page 3 of 7 December 13, 2007 space. They also provide for public trails, and require 40 to 50 percent of 'open space' areas in the City's highest density zones. Item #3: "Promote transportation options such as bicycle trails, commute trip reduction programs, incentives for car pooling and public transit." Submitted by Tonv Baqato, Principal Planner. The rapid growth of the City of Palm Desert, and the Coachella Valley in general, has caused an increase in traffic and presents one of our toughest challenges of protecting the residential character of our community while still meeting the accessibility needs of the community's residents and visitors. Over the past decade, the City has made a conscious effort with policies and programs to promote alternative transportation methods by expanding options for pedestrians, bicycles and golf carts. The City has expanded sidewalks next to major roads and has provided for 70 miles of on-street and off-street bicycle and golf cart paths. In addition, the City has adopted policies promoting mass transit expansion by consulting and coordinating with the SunLine Transit Agency and Coachella Valley Association of Governments (CVAG) encouraging the development of rideshare and other alternative, high occupancy transit programs. Recently, the state of California adopted Assembly Bill 32 (AB32) committing to reduce its greenhouse gases to 2000 levels by 2010, to 1990 levels by 2020 and to 80% below 1990 levels by 2050. To achieve this goal, the City of Palm Desert will have to rely on ridesharing and mass transit as key components of our transportation future. Item #4: "Increase the use of clean, alternative energy by, for example, investing in "green tags", advocating for the development of renewable energy resources, recovering landfill methane for energy production, and supporting the use of waste to energy technology." Palm Desert through its Energy Ordinance #1124 promotes the use of photovoltaic solar as an optional avenue that developers may pursue in documenting compliance to the provisions of the Ordinance. The current Palm Desert Energy Program will be working in 2008 to develop a photovoltaic solar concept for residential and commercial applications as well as a low-cost financing program for homeowners and business owners who wish to install solar panels on their buildings or invest in various energy efficiency improvements. The City of Palm Desert's public transportation company, SunLine Transit Agency, utilizes a fleet of compressed natural gas buses along with a hydrogen fuel cell bus covering the various routes within Palm Desert. Per the franchise agreement with the solid waste company Burrtec, all trucks used for sold waste collection are required to run on compressed natural gas. Items #5 and #6: "Make energy efficiency a priority through building code improvements, retrofitting city facilities with energy efficient lighting and urging employees to conserve energy and save money; Purchase only Energy Star equipment and appliances for City use." C�Documents antl Seningsystaniey�Local Sett�ngs\Temporary Intemet F�les\OLK58\Greenhouse Gasas ResoWtion SR i2-�3-07 tloc Greenhouse Gas Resolution Page 4 of 7 December 13, 2007 The City already has these energy-related items in place. Palm Desert Ordinance #1124 requires all new construction to be 10% to 15% more energy efficient than required by the 2005 energy conservation standards set forth in State law. The current Palm Desert energy standards are approximately 70% more efficient than what was required in 1990 and 45% more efficient than what was required in 2000. New City buildings (Visitor's Information Center and the Henderson Building) were designed and built in conformance with the Leadership In Energy and Environmental Design (LEED) Standards. The City will continue this practice with future buildings. The Civic Center has been retrofitted with various energy efficiency measures such as a 75,000 watt photovoltaic solar system, urethane foam insulated roof system with UV reflective coating, and T-8 fluorescent lighting to name a few. As the existing HVAC equipment in all our City buildings is being replaced, we will use only Energy Star-rated 14 SEER and higher equipment. Item #7: "Practice and promote sustainable building practices using the U.S. Green Building Council's LEED program or a similar system." Submitted bv Tonv Baqato, Principal Planner. Currently, the City has no policies or mandatory requirements for sustainable building practice using the U.S. Green Building Council's LEED program. However, the City has begun to practice sustainable building techniques by constructing the first LEED Certified building in the Coachella Valley. The City is constructing a new community center using sustainable building practices and will apply for LEED Certification. In addition, City staff encourages developers to voluntarily use sustainable building practices to achieve LEED Certification. Although the City has no specific policies or mandatory requirements for sustainable building practices, we are committed to promoting alternative energy, water conservation and recycling. Regarding the use of energy, the City has pledged to reduce its energy demand and use by 30 percent over the next five (5) years. The City has developed a partnership between Southern California Edison, Southern California Gas Company, and The Energy Coalition. Palm Desert residents now have more reasons than ever to start conserving energy. Known as "Set to Save", the partnership offers cash incentives to residents who pursue a wide variety of conservation measures such as replacing aging air conditioners and pool pumps with newer, more energy efficient models. The City is also offering free in-home energy surveys to all Palm Desert residents to identify ways to save energy and money on their utility bills. The City has also adopted a Local Energy Efficiency Ordinance requiring minimum energy efficiency standards for all new construction, including remodels, additions, alterations, condominium conversions, and tentative improvements. Regarding the use of water, the City has established a Water Efficient Landscaping Ordinance that includes desert adapted and native trees and shrubs promoting green sustainable design. The City has a City Arborist and fairly large professional landscape staff for its size. In addition, the City provides local training and outreach programs for schools, Home Owner Associations (HOA's), celebrates Arbor Day, and publishes City of Palm Desert Landscape Maintenance Guidelines to educate the public about proper tree maintenance. The City has a Landscape Beautification Committee that reviews City projects and C�Documents antl$ett�ngsystanley\Local Sen�ngs\Temporary Intemet F�les\OLK58\Greenhpuse Gases Resoiut�on SR 12-13-07 tloc Greenhouse Gas Resolution Page5of7 December 13, 2007 landscaping in Public Rights-Of-Ways. The City co-sponsors water conservation programs with the Coachella Water Valley District (CVWD) and works with the local grassroots organization, The Desert Horticultural Society, on its projects. Item #8: Increase the average fuel efficiency of municipal fleet vehicles; reduce the number of vehicles; launch an employee education program including anti-idling messages; convert diesel vehicles to bio-diesel." Attached to this report is a memo from Mark Greenwood, Director of Public Works, addressing the Palm Desert fleet and purchasing guidelines. Item #9: Evaluate opportunities to increase pump efficiency in water and wastewater systems; recover wastewater treatment methane for energy production." We are currently in the process of completing this task as part of our Energy Program. Motor and pump specialists from Southern California Edison are visiting each of the City's 23 golf courses to do a free evaluation on the existing pumps and indicate where energy savings can occur. They also identify incentive funding to help offset those energy efficiency improvement costs. After the golf courses are addressed we will be scheduling with the CVWD to inventory the 38 active well sites within Palm Desert along with the pumps at the Cook Street plant. The CVWD Cook Street sewage treatment plant does not use a methane digester to process the solid waste, referred to as sludge. The sludge is instead compacted and exported from the Cook Street location to be used as fertilizer. City staff will be working with CVWD staff to address the feasibility of harvesting methane gas in the future. Item #10: "Increase recycling rates in City operations and in the community." Submitted bv Frankie Riddle, Director of Special Proqrams. Since the approval of A6939 the City has always exceeded the required 50% diversion. The following are the diversion rates for Palm Desert: In 2005 = 62%; 2004 = 63%; 2003 = 62%; 2002 = 60% and 2001 = 57%, with an average of 61% over the last five reporting years. The City has also moved forward with the promotion of the Free Commercial Recycling Program. We have 356 businesses implementing recycling programs and saving $6,000.00 monthly. The City has also incorporated recycling requirements within most of our City construction contracts. The City also approved a mandatory automated collection system for all residences within the City. This system requires all residential customers (except multi-family housing units) to have a trash and recycling container. This automatically increased participation by approximately 25%. If the City decides to approve mandatory recycling, all residences will have the proper setup and businesses will also have the ability and education necessary to recycle. Item #11: "Maintain healthy urban forests; promote tree planting to increase shading and to absorb CO2." Submitted bv Tonv Baqato. Principal Planner. Since we live in the desert, the term "Urban Forest" doesn't strictly apply. The City's General Plan makes no clear statement as to the value and purpose of its "Urban Forest". However C�Docume�ts antl$ett�ngsl�stanleyLLocal$en�ngs\Temporery Internet F�les\OLK58\Greenhpuse Gases Resolution SR 12-13-07 tlpC Greenhouse Gas Resolution Page 6 of 7 December 13, 2007 the City does promote tree planting and increased shading through the Parking Lot Ordinance and Tree Ordinance. To be sustainable, the City allows water-efficient trees and desert landscaping as long as a project complies with our Water Efficient Ordinance. The Parking Lot Ordinance requires shade trees to mitigate the negative impact of roads and parking lot surfaces. Item #12: Help educate the public, schools, other jurisdictions, professional associations, business and industry about reducing global warming pollution." As part of our existing Energy Program we are currently doing this activity in grade schools as part of The Energy Coalition's `PEAK School Program'. In 2008, we propose to expand our energy and environmental training to Palm Desert High School with the National Energy Scholar Program. We have met with Pat Walsh, the Principal of PDHS, and the 40 members of the PDHS Environmental Club who are excited about this new proposed program. C.P. Shankar, with American Grid, Inc. has successfully implemented the following Energy Stewardship Program in the State of Maryland. National Energy Schola�C9 Program YOUTH ACTION PROGRAM FOR SCHOOL & COLLEGE STUDENTS CITY OF PALM DESERT, CA "U.S. demand for electricity will increase by 19% over the next 10 years, while the supply will increase by only 6%. This incremental supply will primarily be provided by the addition of 100+ coal fired power plants at cost of over $100 billion. The project plans are currently awaiting federal/local approvals." - Federal Energy Regulatory Commission — 10-year demand forecast (2006). "U.S. contributes to over 25% of the world wide carbon emissions and ranks number one in the per capita carbon emissions among the developed nations." - United Nations, Climate Action Report. "U.S. energy consumption pattern can be divided as follows - '/� residential use; '/3 industrial use and '/3 transportation. In densely populated metro-areas, residential use takes a higher share of up to 2/3 of total consumption. " - U.S. Dept. of Energy. "In major cities across the U.S., 'price-caps' established under the previous Energy Act are expiring shortly, resulting in higher utility prices - ranging from 20-200% over the next 5 years." - U.S. Dept. of Energy. There is an urgent need to educate today's America's youth - the next generation of energy users, on environmental & energy stewardship. The National Energy ScholarC9 certification program is a comprehensive and systematic course of study on the principles of energy, its relationship to our environment, principles of personal, family and community stewardship, and how they can enable responsible energy use and respect for environment. C��Documents and Setungs�ystanleyLLocal Semngs\Temporary�ntemet Fdes�OLK58�Greenhouse Gases Resoluuon SR 12-13-07 tloc Greenhouse Gas Resolution Page 7 of 7 December 13, 2007 The course will empower students to learn practical and permanent ways to take ownership and responsibility for their own personal energy use and local environment. It would enhance a student's personal awareness of responsible energy use, its benefits to their environment with strong reinforcement of their positive behavior. Upon successful graduation, the student would become an ambassador for personal energy & environmental stewardship and help transform their communities one home at a time. Rising energy costs (for heating, cooling, lighting, and transportation) and rapid global warming result in an urgent need for American families to seek effective ways to curtail their energy waste and help protect their environment. Regulators and policy makers at the national/local levels continue to debate a variety of alternatives including exploration of new sources of fossil fuels, renewable energy resources and aggressive conservation efforts using public transportation. These debates may be good for the media, but the resulting actions may not be fast enough to help our citizens and communities. Studies indicate that, (a) merely throwing expensive technology at consumers (at significant direct or indirect costs to the tax payers) does not necessarily result in desired outcomes when they fail to complement their behavior and lifestyles, (b) to be effective, successful energy conservation programs require more permanent behavioral changes through increased levels of awareness and positive reinforcement of good behavior, and (c) these changes of enhanced personal responsibility and a keen sense of stewardship at the individual, family and community level, must begin at a very young age - at the high school and college level - so the next generation of energy users would learn more responsible ways to use energy and protect their environment. While fear and guilt are often used as the tools to create change in human behavior, the results are usually temporary since they create confusion and anxiety among uninformed citizens. The primary objective of this program is to educate communities on the practical ways to change every day energy use habits, and their impact on local environment and climate action; resulting in a more permanent, intelligent and responsible choices that citizens can make for themselves. Increasing awareness and encouraging energy stewardship at the personal, family & community levels is the quickest, most economical, and the cleanest way to bring about this change. Each of us needs to do our share to make this objective successful. Staff will return to the Council in early 2008 to review the specifics of the above program for possible financial support from the City of Palm Desert to implement this program. Submitted by: Approval: r� �,� � � Patnck Conlon Carlos Orteg Director of Office of Energy Management City Manager C\Documents and Setungs��StanieyLLocai Settings�7emporary Internet Fiies�OLK58�Greenhouse Gases Resoiution SR t 2-i 3-07 doc REGULAR PALM DESERT CITY COUNCIL MEETING DECEMBER 13, 2007 XII. RESOLUTIONS C. RESOLUTION NO. 07-78 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, PLEDGING TO ENACT POLICIES AND PROGRAMS TO REDUCE HARMFUL GLOBAL EMISSIONS. ,;ITY COUNCIL TZUIv: APPROV£D � DENYED RECBIVED OTHER /�t,�d , ��S �lo U7-78 �_ MEETING DATE /a-- �3-a� _ AYES: �r i �__ NOES: _ _._ �__._.__._. ABSENT: F�r7er�ii ---.--- -, ABSTATN: __. VERIFIED BY: � /":Y) / __ Original on File wi City Cler.k' s OfficF RESOLUTION NO. 07-78 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, PLEDGING TO ENACT POLICIES AND PROGRAMS TO REDUCE HARMFUL GLOBAL EMISSIONS BE IT HEREBY RESOLVED, by the City Council of Palm Desert, California, as follows: The City of Palm Desert pledges to enact policies and programs to meet or beat the target of reducing harmful global emission levels to seven (7) percent below 1990 levels by 2012, including efforts to: reduce the United States' dependence on fossil fuels and accelerate the development of clean, economical energy resources and fuel -efficient technologies such as conservation, methane recover for energy generation, waste to energy, wind and solar energy, fuel cells, efficient motor vehicles, and bio fuels. 1. Inventory harmful global emissions in City operations in the community, set reduction targets and create an action plan; 2. Adopt and enforce land -use policies that reduce sprawl, preserve open space, and create compact, walkable urban communities; 3. Promote transportation options such as bicycle trails, commute trip reduction programs, incentives for car pooling, and public transit; 4. Increase the use of clean, alternative energy by, for example, investing in "green tags", advocating for the development of renewable energy resources, recovering landfill methane for energy production, and supporting the use of waste to energy technology; 5. Make energy efficiency a priority through building code improvements, retrofitting city facilities with energy efficient lighting and urging employees to conserve energy and save money; 6. Purchase only Energy Star equipment and appliances for City use; 7. Practice and promote sustainable building practices using the U.S. Green Building Council's LEED program or a similar system; RESOLUTION NO. 07-78 8. Increase the average fuel efficiency of municipal fleet vehicles, reduce the number of vehicles, launch an employee education program including anti - idling messages, and convert diesel vehicles to bio-diesel; 9. Evaluate opportunities to increase pump efficiency in water and wastewater systems and recover wastewater treatment methane for energy production; 10. Increase recycling rates in City operations and in the community; 11. Maintain healthy urban forests; and promote tree planting to increase shading and absorption of CO2; and 12. Help educate the public, schools, other jurisdictions, professional associations, business and industry about reducing global warming pollution. PASSED, APPROVED, and ADOPTED by the City Council of the City of Palm Desert, California, on this 13th day of December, 2007 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JEAN M. BENSON, MAYOR CITY OF PALM DESERT, CALIFORNIA ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA 2 4 • ��" '�_1�. , r_ ,� , . . • , _ ,;. �� .bal �larming Solut�ox�:����►. . _ - ��� . Pf� �.5.�� 1 ,�� `� ' <w�th . ,�eqp}. ly'Speaicet Fabi��la Nunez,Assembly Member Ft�m P�rky �+,� . . � . � , :�� �`�'c:�a �•.� �'�•'�<�� •� o:. =-'�'� . � � � � � • � A Fact Sheet of the Union of Concerned Scientists Capping Global Warming Emissions • P�otect entities that have reduced their Scientists overwhelmingly agree that in order to emissions through actions prior to this prevent the most devastating consequences of regulatory mandate globa] warming, such as a 90% loss of California's • Allow for coordination with other states Sierra snowpack, global warming emissions and countries to reduce emissions worldwide must be significantly reduced. Many scientists agree that reductions must be on the Economic Benefits of Implementing a oraer of go%by m�a-cenc�ry. Global Warming Emissions Cap Two recently released, sepazate and independent In response to this waming from the scientific economic analyses show that significantly reducing community,the state of California has shown California's global warming emissions is expected national and international leadership in committing to create jobs and wealth in Califomia.� to reduce its global warming emissions to 2000 levels by 2010(1 1%below business as usual),to The State's top energy modelers found that 83,000 1990 levels by 2020(25%below business as jobs and$4 billion in income could be generated in usual),and 80°lc below 19901evels by 2050. California by meeting the state's goals by 2020. Existing policies, such as California's landmark Leading economists from UC found that eight global warming emissions standard for vehicles policies can take the state over half way to meeting and renewable energy and efficiency requirements the 2020 reductions. These policies,such as will move the state half-way toward meeting the cleaner standards for vehicles and capturing 2020 target. Additional policies are essential to get methane from landfills,can increase the Gross us the rest of the way there. State Product by approximately $60 billion, and create over 20,000 new jobs. AB 32—Global Warming Solutions Act of 2006 California Leadership AB 32 codifies the state's goal by requiring that Calitornia is the world's l2`�largest source of the state's global warming emissions be reduced to carbon dioxide, the chief heat-trapping gas that 1990 levels by 2020. This reduction will be causes global warming. The state has a accomplished through an enforceable statewide cap responsibility to reduce its share of emissions, and on global warming emissions that will be phased in by doing so can lead the United States—and the starting in 2012. In order to effectively implement World—in developing the innovative policies and �he cap, AB 32 directs 1he California Air Resources technologies needed to avoid the most dangerous Board(CARB) to develop appropriate regulations consequences of global warming. and establish a mandatory reporting system to track and monitor global warming emissions levels. AB 32 sponsors: Environmental Defense, Additionally, AB 32 requires that CARB use the Natural Resources Defense Council following principles to implement the cap: • Distribute benefits and costs equitably • Ensure that there are no direct, ttldl[eC[,oi � Hanemann,Michael and A.Farrell,"Managing Greenhouse cumulative increases in air pollution in Gas Emissions in California,"January 2006. local eommunities (http•//calclimate.berkelev.edu/mana�ng GHG, in CA.html) and Chaptcr 8."Economic Assessment,"Climatc Action T'eam Repon.Mazch 2006 (http://www.climatechange.ca.gov/cli matc_action_team/report s/index.html) �,,� UnionofConarnedsciencises Union of Concerned Scientists • ww•w.ucsusa.org/clean_california Cwrr Ma Sw��ow�a E�.romrNr Sa�aom 239�tihattuck.1�cnuc.suitc 303 Bcrkcic�,(:,1 9�3�0� �10.8�33.1872 \ t'-ta':510.8433?85 Assembly Bill No.32 CHAPTER 488 An act to add Division 25.5 (commencing with Section 38500) to the Health and Safery Code,relating to air pollution. [Approved by Govemor September 27,2006.Filed with Secretary of State September 27,2006.] L�GISLA'1'IVE COUNSEL'S DIGE51' AB 32, Nunez. Air pollution: greenhouse gases: California Global Warming Solutions Act of 2006. Under existing law, the State Air Resources Board (state board), the State Energy Resources Conservation and Development Commission (Energy Commission),and the California Climate Action Registry all have responsibilities with respect to the control of emissions of greenhousc gases, as defincd, and the Secretary for Environmental Protection is required to coordinate emission reductions of greenhouse gases and climate change activity in state government. This bill would requirc the state board to adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program, as specified. The bill would require the state board to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions levels in 1990 to be achieved by 2020,as specified.Thc bill would require the state board to adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions,as specified.The bill would authorize the state board to adopt market-based compliancc mechanisms,as defined, meeting specified requirements. The bill would require the state board to monitor compliance with and enforcc any rule,regulation,order,emission limitation, emissions reduction measure, or market-based compliance mechanism adopted by the state board,pursuant to specified provisions of existing law. The bill would authorize the state board to adopt a schedule of fees to be paid by regulated sources of greenhouse gas emissions, as specified. Because the bill would require the state board to establish emissions limits and other requirements, the violation of which would be a crime, this bill would create a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for ccrtain costs mandatcd by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is rcquired by this act for a specified reason. A9 Ch.488 —2— The peoplc�of the State of Calijornia do enact a.r fo/lows: SECTION 1. Division 25.5(commencing with Scction 38500)is addcd to thc Hcalth and Safery Codc,to read: DIVISION 25.5. CALIFORNIA GLOBAL WARMING SOLUTIONS ACT OF 2006 PART 1. GENERAL PROVISIONS CHAPTER 1. TITLE OF I�IVISION 38500. This division shall be known, and may be citcd, as the California Global Wanning Solutions Act of 2006. CHAPTER 2. FINDINGS A\D DECLARATIONS 38501. The Legislature finds and declares all of thc foUowing: (a) Global warming poses a serious threat to the economic wcll-being, public health, natural resources, and the environment of California. The potential adverse impacts of global warming include the exacerbation of air quality problems, a reduction in the quality and supply of water to the state from the Sierra snowpack, a rise in sea levels resulting in the displacement of thousands of coastal businesses and residences,damage to marine ecosystems and the natural environment, and an increase in the incidences of infectious diseases, asthma, and other human health-related problems. (b) Global warming will have detrimental cffects on some of California's largest industries, including agriculture,wine,tourism,skiing, recreational and commercial fishing, and forestry. It will also increase the strain on elcctriciry supplies necessary to meet the demand for summcr air-conditioning in the hottest parts of the state. (c) California has long been a national and international Icader on energy conservation and environmental stewardship efforts, including the areas of air quality protections,energy efficiency requirements,renewable energy standards, natural resource conservation, and greenhouse gas emission standards for passenger vchicles.The program established by this division will continue this tradition of environmental leadership by placing California at the forefront of national and international efforts to reduce emissions of grcenhouse gases. (d) National and intcrnational actions are neccssary to fully address the i�suc of global warming. However, action taken by Califomia to reduce emissions of grcenhouse gases will have far-reaching effects by cncouraging other states, thc fcdcral government, and other countries to act. 89 —3— C h.488 (e) By exercising a global leadership role, California will also position its cconomy, technology centers, financial institutions, and businesses to benefit from national and international efforts to reduce emissions of greenhouse gases. More importantly, investing in the development of innovative and pioneering technologies will assist California in achieving the 2020 statewide limit on cmissions of greenhouse gases established by this division and will providc an opportunity for the state to takc a global economic and technological lcadcrship role in reducing emissions of greenhouse gases. (� It is the intent of the Legislature that the State Air Resources Board coordinate with state agencies, as well as consult with the environmental justice community, industry sectors, business groups, academic institutions, environmental organizations, and other stakeholdcrs in implementing this division. (g) It is the intent of thc Lcgislature that the State Air Resources Board consult with the Public Utilities Commission in the development of emissions reduction measures,including limits on emissions of greenhouse gases applied to electricity and natural gas providers regulated by the Public Utilities Commission in order to ensurc that electricity and natural gas providers are not required to meet duplicative or inconsistent regulatory requirements. (h) It is the intent of the Legislature that the State Air Resourccs Board design emissions reduction measures to meet the statewide emissions limits for greenhouse gases established pursuant to this division in a manncr that minimizes costs and maximizes benefits for California's economy, improves and modernizes California's energy infrastructure and maintains electric system reliability, maximizes additional environmental and economic co-benefits for California, and complements the state's efforts to improvc air quality. (i) It is the intent of the Legislature that thc Climate Action Team cstablished by the Governor to coordinate the efforts set forth under Executive Order S-3-OS continuc its role in coordinating overall climatc policy. CHAPTER 3. DtFINITtONS 38505. For thc purposes of this division, the following tcrms have the following mcanings: (a) "Allowance" means an authorization to emit, during a specificd ycar,up to one ton of carbon dioxide equivalent. (b) `Alternative compliance mechanism" means an action undertaken by a greenhouse gas emission sourcc that achieves the equivalent rcduction of greenhouse gas emissions over the same time period as a direct emission reduction, and that is approved by thc state board. "Alternative compliance mechanism" includes, but is not limited to, a x9 Ch.488 —4— flcxiblc compliance schedule, alternative control technology, a process changc,or a product substitution. (c) "Carbon dioxidc cquivalcnt" mcans the amount of carbon dioxide by weight that would produce the same globa] warming impact as a given weight of another greenhouse gas, based on the best available sciencc, including from the Intergovcrnmental Pancl on Climatc Change. (d) "Cost-effective" or"cost-effectiveness" means the cost per unit of reduced emissions of greenhouse gases adjusted for its global warming potential. (e) "Direct emission reduction" means a greenhouse gas emission reduction action made by a greenhousc gas emission source at that source. (� '`Emissions reduction measure" means programs, mcasures, standards, and alternative compliance mechanisms authorized pursuant to this division, applicable to sources or categories of sources, that are designed to reduce emissions of greenhouse gases. (g) "Greenhouse gas" or "greenhouse gases" includes all of thc following gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,perftuorocarbons,and sulfur hexaflouride. (h) "Greenhouse gas emissions limit"means an authorization,during a specified ycar, to emit up to a levcl of grccnhousc gascs specified by the state board,expressed in tons of carbon dioxide equivalents. (i) "Greenhouse gas emission sourcc"or"source"means any source,or category of sources,of greenhouse gas emissions whose emissions are at a level of significance,as determined by the state board,that its participation in the program established under this division will enable the state board to cffectively reduce greenhouse gas emissions and monitor compliance with the statewide greenhouse gas emissions limit. (j) "Leakage" means a reduction in emissions of greenhouse gases within the state that is offset by an increase in emissions of greenhousc gases outside the statc. (k) "Market-based compliance mechanism" means either of thc following: (1) A system of market-based declining annual aggregate emissions limitations for sources or categories of sources that emit greenhouse gases. (2) Greenhouse gas emissions exchanges, banking, credits, and other transactions, governed by rules and protocols cstablished by the state board,that result in the same greenhouse gas emission reduction, over thc same time period, as direct compliance with a greenhouse gas emission limit or emission reduction measure adopted by the state board pursuant to this division. (n "State board"means the State Air Resources Board. (m) "Statewide greenhouse gas emissions" means the total annual emissions of greenhouse gases in the state, including all emissions of greenhouse gases from the generation of electricity delivered to and consumed in California, accounting for transmission and distribution line losses, whethcr thc clectricity is gcnerated in state or imported. Statewide emissions shall be expressed in tons of carbon dioxide equivalents. 89 —5— Ch.488 (n) "Statewidc greenhousc gas emissions limit"or"statcwide emissions limit" means the maximum allowable level of statewide grecnhouse gas emissions in 2020, as determincd by the statc board pursuant to Part 3 (commencing with Section 38850). CHAPTER 4. ROLE OF STATE BOARD 38510. Thc State Air Resources Board is the state agency charged with monitoring and regulating sources of emissions of grecnhouse gascs that cause global warming in order to reduce emissions of greenhouse gases. PART 2. MANDATORY GREENHOUSE GAS EMISSIONS REPORTING 38530. (a) On or bcfore January 1, 2008, the state board shall adopt regulations to require the reporting and verification of statewide greenhouse gas emissions and to monitor and enforce compliance with this program. (b) The regulations shall do all of the following: (1) Require the monitoring and annual reporting of grccnhouse gas emissions from greenhouse gas emission sources beginning with the sources or categories of sources that contribute the most to statewide emissions. (2) Account for greenhouse gas emissions from all electricity consumed in the state, including transmission and distribution line losses from clectriciry generated within the state or imported from outside the state. This requirement applies to all retail sellers of electriciry, including load-serving entities as defined in subdivision (j) of Section 380 of the Public Utilities Code and local publicly owned electric utilities as defined in Scction 9604 of thc Public Utilitics Code. (3) Where appropriate and to thc maximum extent feasible, incorporate the standards and protocols developcd by the California Climate Action Registry, established pursuant to Chapter 6 (commcncing with Section 42800)of Part 4 of Division 26. Entitics that voluntarily participatcd in the California Climate Action Registry prior to December 31, 2006, and have developed a greenhouse gas emission reporting program, shall not be required to significantly alter their reporting or verification program except as necessary to ensure that reporting is complete and verifiable for the purposes of compliance with this division as determined by the state board. (4) Ensure rigorous and consistent accounting of emissions, and provide reporting tools and formats to ensure collection of necessary data. (5) Ensure that greenhouse gas emission sources maintain comprehensive records of all reported greenhouse gas emissions. (c) The state board shall do both of the following: x9 Ch.488 —6— (1) Periodically rcview and updatc its emission reporting requirements, as necessary. (2) Revicw existing and proposed international, federal, and state grecnhouse gas emission rcporting programs and make reasonablc ef�orts to promote consistency among the programs established pursuant to this part and other programs, and to streamline reporting requirements on greenhouse gas emission sources. PART 3. STATEWIDE GREENHOUSE GAS EMISSIONS LIMIT 38550. By January 1, 2008, the state board shall, after one or more public workshops,with public notice,and an opportuniry for all interested parties to comment, determine what thc statewide greenhouse gas emissions level was in 1990, and approve in a public hearing, a statewide greenhouse gas emissions limit that is equivalent to that level, to be achieved by 2020. In order to ensure che most accurate determination feasible, the state board shall evaluate the best available scientific, technological, and economic information on greenhouse gas emissions to determine the 1990 level of greenhouse gas emissions. 38551. (a) The statcwide greenhouse gas emissions limit shall remain in effect unless otherwise amended or repealed. (b) It is the intent of thc Legislature that the statewide greenhouse gas emissions limit continue in existence and be used to maintain and continue reductions in emissions of greenhouse gases beyond 2020. (c) The state board shall make recommendations to the Govcrnor and the Legislature on how to continue reductions of greenhouse gas emissions beyond 2020. PART 4. GREENHOUSE GAS EMiSSIONS REDUCTiONS 38560. The state board shall adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions from sources or categories of sources, subject to the criteria and schedules set forth in this part. 38560.5. (a) On or before June 30, 2007, the state board shall publish and make available to the public a list of discrete early action greenhouse gas emission reduction measures that can be implemented prior to the measures and limits adopted pursuant to Section 38562. (b) On or before January 1,2010,the state board shall adopt regulations to implement the measures identified on the list published pursuant to subdivision(a). (c) The regulations adoptcd by the state board pursuant to this section shall achieve thc maximum technologically feasible and cost-effcctive reductions in greenhousc gas cmissions from those sourccs or categories of 89 —7— C h.488 sources, in furtherance of achieving ihe statewide greenhouse gas emissions limit. (d) The regulations adopted pursuant to this section shall be enforceable no later than January 1,2010. 38561. (a) On or before January 1, 2009, the state board shall prepare and approve a scoping plan,as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhousc gases by 2020 undcr this division. The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy related mattcrs including,but not limited to,electrical generation, load based-standards or requirements,the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure thc greenhousc gas emissions reduction activities to be adopted and implementcd by the statc board are complementary, nonduplicative, and can be implemented in an efficient and cost-eff'ective manner. (b) The plan shall identify and make recommendations on direct emission reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and co�t-efTective reductions of greenhouse gas emissions by 2020. (c} In making the determinations required by subdivision (b), the state board shall considcr all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union. (d) The state board shall evaluate the total potential costs and total potential cconomic and noneconomic benefits of the plan for reducing greenhouse gases to California's economy, environment, and public health, using the best available economic models, emission estimation techniques,and other scientific methods. (e) In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emission reduction requirements will not apply. (� In developing its plan,the state board shall identify opportunities for emission reductions measures from all verifiable and enforceablc voluntary actions, including, but not limited to, carbon sequestration projccts and best management practiccs. 89 Ch.488 —8— (g) The state board shall conduct a series of public workshops to givc interested partics an opportuniry to comment on the plan. The statc board shall conduct a portion of these workshops in regions of the state that havc the most significant exposure to air pollutants, including, but not limited to,communitics with minoriry populations,communities with low-income populations,or both. (h) The state board shall update its plan for achieving the maximum technologically feasible and cost-effective rcductions of greenhousc gas emissions at Icast once every five years. 38562. (a) On or beforc January 1, 201 l, the statc board shall adopt greenhouse gas emission limits and cmission reduction mcasures by regulation to achicvc the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit, to become operative beginning on January 1, 2012. (b) In adopting regulations pursuant to this section and Part 5 (commencing with Section 38570), to the extent feasiblc and in furtherance of achieving the statewidc grccnhouse gas emissions limit,the state board shall do all of the following: (1) Design thc regulations, including distribution of emissions allowances where appropriate, in a manner that is equitablc, seeks to minimize costs and maximize the total benefits to California, and encourages early action to reduce greenhouse gas emissions. (2) Ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities. (3) Ensurc that cntities that have voluntarily reduccd their greenhousc gas emissions prior to the implementation of this scction receive appropriatc credit for early voluntary reductions. (4) Ensure that activities undertaken pursuant to the regulations complement, and do not interfere with, efforts to achieve and maintain fcderal and state ambient air quality standards and to reduce toxic air contaminant emissions. (5) Consider cost-effectiveness of these regulations. (6) Consider overall societal benefits, including reductions in other air pollutants, diversification of energy sources, and other benefits to the economy,environment,and public health. (7) Minimize the administrative burden of implementing and complying with these regulations. (8) Minimize leakage. (9) Consider the significance of the contribution of each source or category of sources to statewide emissions of greenhouse gases. (c) In furtherancc of achieving the statewide grecnhouse gas emissions limit, by January 1, 2011, the state board may adopt a regulation that establishes a system of market-based declining annual abbregate emission limits for sources or catcgories of sources that cmit greenhouse gas emissions, applicable from January 1, 2012, to December 31, 2020, inclusive, that the state board dctcrmines will achieve thc maximum 89 —9— Ch.488 technologically feasible and cost-effcctive reductions in grcenhouse gas emissions, in the aggregate, from those sources or categories of sources. (d) Any regulation adopted by thc statc board pursuant to this part or Part 5 (commencing with Scction 38570)shall ensurc all of the following: (1) The greenhouse gas emission reductions achieved are real, permanent,quantifiable,verifiablc,and enforceable by the statc board. (2) For regulations pursuant to Part 5 (commencing with Section 38570), the reduction is in addition to any greenhouse gas emission reduction otherwise required by law or regulation, and any othcr greenhouse gas emission reduction that otherwise would occur. (3) If applicable,the greenhouse gas emission reduction occurs over thc same time period and is equivalent in amount to any direct emission reduction required pursuant to this division. (e) The state board shall rely upon the best available economic and scientific information and its assessment of existing and projected technological capabilities when adopting the regulations required by this section. (� The state board shall consult with the Public Utilities Commission in the development of the regulations as they affect electricity and natural gas providers in order to minimize duplicative or inconsistent regulatory requirements. (g) After January 1, 2011, the state board may revise regulations adopted pursuant to this section and adopt additional regulations to further thc provisions of this division. 38563. Nothing in this division restricts the statc board from adopting greenhouse gas emission limits or cmission reduction measures prior to January 1, 2011, imposing those limits or measures prior to January 1, 2012,or providing early reduction credit where appropriate. 38564. The state board shall consult with other states, and the fedcral government, and other nations to identify the most effcctive strategies and methods to reduce greenhouse gases, manage greenhouse gas control programs, and to facilitate the development of integrated and cost-effective regional, national, and international greenhouse gas reduction programs. 38565. The state board shall ensure that the greenhousc gas emission reduction rules, regulations, programs, mechanisms, and incentives undcr its jurisdiction, where applicable and to the extent feasible, direct public and private investment toward the most disadvantaged communities in California and provide an opportunity for small businesscs, schools, affordable housing associations, and other community institutions to participate in and benefit from statewide efforts to reduce greenhouse gas emissions. 2f 9 Ch.488 —10— PART 5. MARKET-BASED COMPLIANCE MECHANISMS 38570. (a) Thc state board may includc in the regulations adopted pursuant to Section 38562 the use of market-based compliance mechanisms to comply with the regulations. (b) Prior to the inclusion of any market-based compliance mechanism in the regulations,to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions limit,thc state board shall do all of the following: (1) Consider the potential for dircct, indirect, and cumulative emission impacts from these mechanisms, including localized impact� in communities that are already adversely impacted by air pollution. (2) Design any market-based compliance mechanism to prevent any increase in the emissions of toxic air contaminants or criteria air pollutants. (3) Maximize additional environmental and economic benefits for California,as appropriate. (c) The state board shall adopt regulations governing how market-based compliance mechanisms may be used by regulated entities subject to greenhousc gas emission limits and mandatory emission reporting requirements to achieve compliance with their greenhouse gas emissions limits. 38571. Thc state board shall adopt methodologies for the quantification of voluntary greenhouse gas emission rcductions. The state board shall adopt regulations to verify and enforce any voluntary greenhouse gas emission reductions that arc authorized by the state board for use to comply with greenhousc gas emission limits established by the state board. The adoption of inethodologies is exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section I I340)of Part 1 of Division 3 of Title 2 of the Government Code). 38574. Nothing in this part or Part 4(commencing with Section 38560) confers any authority on the state board to alter any programs administered by other state agencies for thc rcduction of greenhouse gas cmissions. PART 6. ENFORCEMENT 38580. (a) The state board shall monitor compliance with and enforce any rule, rcgulation, order, emission limitation, emissions rcduction measure, or market-based compliance mechanism adopted by the state board pursuant to this division. (b) (1) Any violation of any rule,regulation,order,emission limitation, emissions reduction mcasure,or other measurc adopted by the state board pursuant to this division may be enjoined pursuant to Section 41513, and the violation is subjcct to those penalties set forth in Article 3 (commencing with Section 42400) of Chaptcr 4 of Part 4 of, and Chapter 1.5 (commencing with Scction 43025)of Pact 5 of,Division 26. 89 —11 — Ch.488 (2) Any violation of any rulc, regulation, ordcr, emission limitation, emissions reduction measurc, or other measurc adopted by the state board pursuant to this division shall be deemed to result in an emission of an air contaminant for the purposes of the penalty provisions of Article 3 (commencing with Section 42400) of Chapter 4 of Part 4 of, and Chapter 1.5 (commencing with Section 43025)of Part 5 of, Division 26. (3) The state board may develop a method to convert a violation of any rule, regulation, order, emission limitation, or other emissions reduction measure adopted by the state board pursuant to this division into the number of days in violation, where appropriate, for thc purposes of the penalty provisions of Article 3 (commencing with Section 42400) of Chapter 4 of Part 4 of,and Chapter 1.5 (commencing with Section 43025) of Part 5 of, Division 26. (c) Section 42407 and subdivision (i) of Section 42410 shall not apply to this part. PART 7. MISCELLANEOUS PROVISIONS 38590. If the regulations adopted pursuant to Section 43018.5 do not remain in effect, the state board shall implement alternative regulations to control mobile sources of greenhouse gas emissions to achieve equivalent or greater reductions. 38591. (a) The state board, by July 1, 2007, shall convene an environmental justice advisory committee, of at least three members, to advise it in dcveloping the scoping plan pursuant to Section 38561 and any other pertinent matter in implementing this division. The advisory committee shall be comprised of representatives from communities in the statc with the most significant exposure to air poilution, including, but not limited to, communities with minoriry populations or low-income populations,or both. (b) The state board shall appoint the advisory committec members from nominations received from environmental justice organizations and community groups. (c) The state board shall provide reasonable per dicm for attendance at advisory committee meetings by advisory committee members from nonprofit organizations. (d) The state board shall appoint an Economic and Technology Advancement Advisory Committee to advise the state board on activities that will facilitate investment in and implemcntation of technological research and development opportunities, including, but not limited to, identifying new technologies, research, demonstration projects, funding opportunities, developing state, national, and intemational partncrships and tcchnology transfer opportunities, and identifying and assessing research and advanced technology investment and incentive opportunities that will assist in the reduction of grecnhouse gas emissions. The committee may also advise the state board on state,regional,national,and A9 Ch.488 —12— international economic and technological developments related to grcenhouse gas emission reductions. 38592. (a) All state agencics shall considcr and implement strategies to reduce their greenhouse gas emissions. (b) Nothing in this division shall relicve any person, entity, or public agency of compliance with other applicable federal, state,or local laws or regulations, including state air and water quality requiremcnts, and other requirements for protecting public hcalth or the cnvironment. 38593. (a) Nothing in this division affects the authoriry of the Public Utilities Commission. (b) Nothing in this division affects the obligation of an electrical corporation to provide customers with safe and reliable electric scrvice. 38594. Nothing in this division shall limit or expand thc cxisting authority of any district,as defined in Scction 39025. 38595. Nothing in this division shall preclude, prohibit, or restrict the construction of any new faciliry or the expansion of an existing facility subject to regulation under this division, if all applicable reGuirements are met and the faciliry is in compliance with regulations adopted pursuant to this division. 38596. The provisions of this division are severable. If any provision of this division or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. 38597. The state board may adopt by regulation, aftcr a public workshop, a schedule of fees to be paid by the sources of greenhouse gas emissions regulated pursuant to this division, consistent with Section 57001, The revenues collected pursuant to this section, shall be deposited into the Air Pollution Control Fund and are available upon appropriation, by the Legislature, for purposes of carrying out this division. 38598. (a) Nothing in this division shall limit the existing authority of a state entity to adopt and implement greenhouse gas emissions reduction measures. (b) Nothing in this division shall relieve any state entity of its lcgal obligations to comply with existing law or regulation. 38599. (a) In the event of extraordinary circumstances, catastrophic events, or threat of significant economic hann, the Governor may adjust the applicable deadlines for individual regulations, or for the statc in the aggregatc,to the earliest feasible date after that deadline. (b) The adjustmcnt period may not exceed one year unlcss the Govcrnor makes an additional adjustment pursuant to subdivision(a). (c) Nothing in this section affects the powers and duties established in the California Emergency Services Act (Chapter 7 (commencing with Section 8550)of Division 1 of Title 2 of the Government Code). (d) The Govcrnor shall, within ]0 days of invoking subdivision (a), provide written notification to the Legislature of the action undertaken. SEC. 2 No reimbursement is required by this act pursuant to Scction 6 of Article XIII B of the California Constitution because the only costs that 89 —13— Ch.488 may be incurred by a local agency or school district will be incurrcd because this act creates a new crime or infraction, eliminates a crime or infraction, or changcs the penalry for a crime or infraction, within the meaning of Section 17556 of thc Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. O 89 CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: Adopt Fleet Purchasing Guidelines SUBMITTED BY: Mark Greenwood, P.E. Director of Public Works DATE: December 13, 2007 CONTENTS: Chart of Current Fleet Vehicles by Fuel Type Fleet Purchasing Guidelines Recommendation: By Minute Motion, adopt fleet purchasing guidelines to maximize the use of alternative-fuel vehicles. Background: In an effort to reduce reliance on imported oil, to reduce vehicle emissions, and to comply with recent mandates regarding government fleets, the City desires to incorporate as many alternative-fuel vehicles (AFVs) into its fleet as possible. Prior to compiling a comprehensive report and proposing the attached fleet purchasing guidelines, Public Works Department staff conducted exhaustive research into the alternative-fuel vehicles available on the market today, which include CNG, propane, E85 (ethanol) and biodiesel. In addition, staff has gained considerable first-hand knowledge of the performance and maintenance requirements of different fuel types from our current fleet which consists of alternative fuels (60%), gasoline (35%) and diesel (5%). Finally, we toured and obtained data from the City of Santa Monica's fleet maintenance facility, which services vehicles powered by CNG, hydrogen, and biodiesel. Discussion: All-electric Several years ago, the City participated in a demonstration program using all-electric pickup trucks, with poor results. The vehicles were returned to the manufacturer prior to the planned end of the demonstration because of the many mechanical inefficiencies related to battery failure during the hot summer months. Staff Report Page 2 of 4 December 13, 2007 Plug-in hybrid Plug-in hybrids are an emerging technology which shows promise for fleet operations in urban areas. A Plug-in Hybrid Electric Vehicle (PHE� is essentially an electric vehicle with a gasoline engine backup. In addition to CNG, hydrogen, and biodiesel, the City of Santa Monica operates a small number of PHEVs for demonstration purposes. Given the poor performance of the all- electric trucks in our demonstration, it is unclear how well this type of vehicle would perform in the desert environment. Staff suggests that a PHEV would be a good candidate as a demonstration vehicle for use on a trial basis by the Office of Energy Management to assess its effectiveness and determine the best use for PHEVs in our fleet. Propane At least one vehicle manufacturer advertises the availability of propane-fueled pickup trucks. However, these vehicles have not been certified for use in California. Staff will continue to monitor the availability of this type of vehicle. E85 �Ethanol) E85 fuel is 85% ethanol and 15% gasoline. Several vehicle manufacturers, including Ford and General Motors, sell a wide range of E85 vehicles. However, the E85 fuel has very limited availability in California at this time, with only four fueling stations. Due to the wide availability of vehicles, availability of this fuel is likely to expand in the future. Staff does not recommend E85 vehicles at this time; however, we will continue to monitor the situation. CNG Compressed natural gas is an efficient and clean fuel; the American Council for Energy-Efficient Economy ranked the Honda Civic GX as the "greenesY' 2007 production vehicle. Another benefit of CNG is that it is produced in North America (the United States produces 85% and the remaining 15% is imported from Canada). We currently have three dedicated CNG Honda Civic GX vehicles in our fleet. These vehicles are equipped from the factory with dedicated CNG systems, and maintenance is available at the local Honda dealership by Honda- trained technicians. These original equipment manufacturer (OEM) CNG vehicles have performed well in our fleet. However, there are no OEM CNG pickup trucks on the market. Our fleet currently has 22 pickup trucks that were retrofitted with dedicated CNG systems. These vehicles have required more frequent maintenance than the typical gasoline- powered vehicles. The relative complexity and uncommon nature of CNG vehicles require more highly trained service technicians. The nearest maintenance facility where technicians are trained in this CNG system is located in Riverside. Transporting vehicles to and from Riverside is ine�cient and expensive, and vehicles serviced at the facility are often returned to us with repairs performed in a way that does not meet our expectations. It is anticipated that technicians holding ASE (Automotive Service Excellence) certification possess the necessary skills and knowledge to maintain a diverse fleet. Yet, without an ASE Certified Senior Mechanic on staff we must continue to have these trucks serviced by a third party. Therefore, staff would not recommend the Staff Report Page 3 of 4 December 13, 2007 purchase of CNG retrofit trucks unless a position for an ASE Certified Senior Mechanic is approved. A "slow-fill" CNG fueling station has been installed at the Corporation Yard so that our dedicated CNG vehicles may be fueled overnight. The cost for this installation was less than $10,000. The City has an account with Burrtec Waste Industries to provide CNG fuel for the price of $1.29 per gallon, as well as a back-up account with SunLine Transit for $2.40 per gallon. Both the Burrtec and the SunLine Transit facilities provide fast-fill service, allowing vehicles to be fueled within minutes. As the City's use of CNG vehicles expands, it may be beneficial to build a CNG fast- fill station of our own. The estimate to install a "fast-fill" station, either at the Corporation Yard or here at the Civic Center (possibly located within the "charging station" at the San Pablo entrance to City Hall), is between $150,000 and $200,000. Our experience with CNG vehicles has shown a travel distance of approximately 150 miles before requiring refueling. CNG fueling stations are located sporadically throughout southern California; therefore, these vehicles are primarily used for local (valley) transportation only. Hybrid Hybrid vehicles that use both battery and gasoline are probably the most widely available AFVs on the market, with many manufacturers and many models to choose from. We have four Honda Civic hybrids that have performed well with normal maintenance. The drawback to the hybrid is that they do use gasoline; therefore, they are not as green as other AFVs; however, they can travel a further distance without concern for fuel availability. ChevroleUGMC manufactures a hybrid Silverado truck that could be a replacement option for the dedicated gasoline trucks in our fleet. A small hybrid SUV, such as the Saturn Outlook Green Line or the Ford Escape may be a reasonable alternative to the all-gasoline minivans in our current fleet. Biodiesel Another viable alternative to gasoline is biodiesel. Biodiesel is a fuel produced from organic feed sources such as corn and vegetable oil. In its pure form (B100) it is non-toxic and biodegradable. This fuel is one of the safest fuels to use, store and handle because it does not produce combustible vapors. Biodiesel offers greatly reduced emissions over diesel and gasoline. Biodiesel vehicles have been successfully integrated into the City of Santa Monica's alternative-fuel vehicle fleet. It has been reported that all diesel trucks manufactured after 1997 are capable of running on biodiesel without the requirement of system modifications. However, it has also been reported that vehicle manufacturers will not honor warrantees on vehicles that have used biodiesel fuel. This issue is being disputed in the courts by biodiesel users; therefore, transitioning the pickup truck fleet toward diesels utilizing biodiesel fuels should remain a serious option. The Corporation Yard has a diesel tank to fuel the diesel vehicles and equipment. A new biodiesel tank would be needed during the transition period while older vehicles remained in our fleet. A new tank for biodiesel is estimated to cost $35,000. It is Staff Report Page 4 of 4 December 13, 2007 recommended that biodiesel be phased in, starting with B20 (20% bio-fuel, 80% diesel) and progressing to 650 (50% bio-fuel, 50% diesel) and finally to B100 (no petroleum diesel) over the course of several years, as the City of Santa Monica has successfully accomplished. Based on our exhaustive research regarding alternative fuels, the types of vehicles available, and the current and future needs of the City, the attached purchasing guidelines have been developed for fleet vehicles and equipment. Department Head: Mark Greenwood, P.E. Director of Public Works Approval: Homer Croy Paul Gibson ACM for Development Services Finance Director Carlos L. Ortega City Manager /dhl CITY OF PALM DESERT FLEET PURCHASING GUIDELINES It is the intent of the City of Palm Desert to purchase alternative-fuel vehicles whenever possible. It must be understood that this policy does not restrict the choice of vehicles other than to require alternative fuels for all vehicles. Because this is an area of growing technology, the focus should not be on any one type of vehicle or equipment, but rather to utilize all technologies available, when and where appropriate. Available models include, but are not limited to, those listed. Available models are listed in order of preference, below: CARS / SEDANS 1 . CNG - Factory installed only (no third party retrofitters) 100% factory warranty and support - Honda Civic GX (dedicated CNG) 2. Hybrid - Honda Accord - Honda Civic - Honda Insight - Nissan Altima - Saturn Aura Green Line - Toyota Prius 3. Plug-In Hybrid (recommended in small quantities for demonstration purposes only) - Toyota Prius PICK-UP TRUCKS 1 . Diesel - (biodiesel compatible) - GMC Sierra - Chevrolet Silverado - Dodge Ram - Ford F-250 2. Hybrid - GMC Sierra - Chevrolet Silverado Fleet Purchasing Guidelines Page 1 3. Dedicated CNG retrofit (only if ASE Certified Senior Mechanic on city staff for in-house repairs) - GMC Sierra - Chevrolet Silverado - Ford F 150 - GMC Sierra VANS / SUV 1 . Hybrid - Ford Escape - Saturn VUE - Saturn Outlook (6-passenger with a 3�d row seat) - Mercury Mariner HEAVY DUTY VEHICLES AND EQUIPMENT 1 . Diesel - (biodiesel compatible) 2. CNG Fleet Purchasing Guidelines Page 2 LOOZ `�i�aqwa�aa �asaia %S aui�oseg /5£ JN� s,n�d %09 au��ose� �io�� o I JN� la��-�8 au��ose� au��ose� ��°£ � J au�doad �an;-�8 s}�e� �ia;�al3 �asa�Q spiaq/(H ad/(1 �an� /�q sa��iyan �aa�� �asaQ w��d �o I(�i�