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SR 09-13-2016 8B Ci ty Council Report City Council Meeting : September 13, 2016 Agenda Item: 8.B 1 of 16 To: Mayor and City Council From: Dean Kubani, Sustainability Manager , Office of Sustainability & the Environment Subject: Climate Action Update to Council: 15x15 Climate Action Plan Final Report, Sea Level Rise Analysis and the New Climate Action and Ada ptation Plan Recommended Action Staff recommends that the City Council: 1. Review and comment on the 15X15 Climate Action Plan Final Report ; and 2. Direct staff to complete a feasibility and financial impact analysis for achieving carbon neutral ity by 2050 or s ooner , and return to Council with recommendations. Executive Summary The City of Santa Monica has been a long -time pioneer among cities taking local action to spur global response to the threat of long -term climate change. As a coastal city in an arid cl imate zone, our city is particularly vulnerable to the potential adverse impacts of severe climate change due to human activity. The example of Santa Monica and other local communities have helped catalyze California’s internationally -significant efforts to mitigate climate change. This worldwide movement of cities and governments helped support the Paris Agreement last year where 195 countries adopted the first - ever universal, legally binding global climate accord. On February 26, 2013, Council adopted the 15x15 Climate Action Plan, which was a short -term, action -based plan to reduce greenhouse gas emissions 15% below 1990 levels by 2015. Implementation of the 15x15 Climate Action Plan was completed at the end of FY 2015. Monitoring and evaluation reveal s that the City surpassed its greenhouse gas emissions reduction target. Compared to 1990, Santa Monica’s annual emissions are now 20% below baseline. On January 26, 2016 Council authorized the hiring of a consultant to develop a new Climate Action and Ad aptation Plan (CAAP) to guide continued reductions and mitigation efforts to meet the City’s long term emission reduction goals and to develop adaptation strategies to expected local impacts of climate change. Development of this 2 of 16 plan is underway and it is scheduled to be delivered to Council in 2017 . A study evaluating the local impacts of sea level rise and increased storm activity is nearing completion and this will provide the basis for many of the local adaptation strategies to be included in the plan. I n February 2013 Council adopted long range emission reduction targets calling for a 30% reduction by 2030 and 80% by 2050. The December 2015 Paris Agreement that resulted from the United Nations -organized Conference of the Parties (COP21) acknowledges th at deeper reductions in global emissions will be required to limit global average temperature increases and recommends that governments work to achieve carbon neutrality. Following the release of this agreement the Santa Monica Task Force on the Environme nt adopted a motion recommending that City Council adopt a carbon neutrality target for Santa Monica and develop a plan to meet it by 2050 or sooner. Carbon neutrality means that the net greenhouse gas emissions associated with a city are zero. This goal h as been adopted by many leading cities around the world, and is considered the new imperative to avoid worsening climate change. The CAAP will include a feasibility and financial impact analysis for achieving carbon neutrality under various timelines, and when the plan is completed staff will return to Council with final recommendations. Background Council adopted the Sustainable City Plan (SCP) in 1994 to protect natural resources, prevent harm to the natural environment, enhance human health, and improv e the social and economic well -being of the community for current and future generations. In light of increasing scientific consensus on the threat of global climate change, o n October 10, 2006, Council amended the SCP with updated goal areas, targets and indicators, which included reduction in the local generation of Greenhouse Gas Emissions (GHG). These are a primary source of build -up of carbon in the atmosphere, the impetus for global climate change. The GHG targets established were a 15 percent redu ction below 1990 levels by 2015 communitywide and a 30 percent reduction below 1990 levels by 2015 for municipal operations. These went considerably beyond the requirements of the landmark AB 32, 3 of 16 signed into law by California Governor Arnold Schwarzenegger later in 2006. On July 6, 2010, Council adopted the Land Use and Circulation Element (LUCE), which calls for the preparation of a Climate Action Plan with periodic monitoring to evaluate progress. On February 26, 2013, Council adopted longer term emiss ion reduction targets calling for a 30% reduction below 1990 levels by 2030 and an 80% reduction by 2050, and adopted the 15x15 Climate Action Plan to ensure the City would meet its previously adopted short term goals of a communitywide15% reduction below baseline levels and a 30% reduction for municipal operations by 2015. On January 26, 2016 Council authorized the hiring of a consultant to develop a new Climate Action and Adaptation Plan (CAAP) to guide continued reductions and mitigation efforts to meet the City’s long term emission reduction goals and to develop adaptation strategies to address expected local impacts of climate change. The State Legislature has recently passed legislation committing California to the same 30% reduction by 2030 that San ta Monica adopted three years ago. Discussion When the 15x15 Climate Action Plan (15x15 CAP) was prepared, staff conducted a greenhouse gas inventory of community sources for the year 2011. The inventory revealed that emissions had dropped 14% below 1990 levels. Staff projected that, based on increased economic activity and population, emissions would increase. In order to achieve the 15% reduction target below 1990, the City would have to reduce approximately 29,000 metric tons of carbon dioxide equivalen ts or MTCO2e, (equivalents refer to methane and nitrous oxide being measured in units of carbon dioxide ‘equivalents’). Figure 1. Santa Monica’s Greenhouse Gas Emissions 4 of 16 The 15x15 CAP identified 15 objectives to be completed by the end of fiscal year 20 15 (Attachment 1). Each objective includes actions to be implemented by various City divisions, or required action to be taken by residents and businesses. In total, there were 34 actions included in the plan . Completing these objectives and actions would help the City mitigate and reduce the remaining 29,000 MTCO2e and achieve 15% below baseline targets. The 15x15 Climate Action Plan Final Report has been prepared, providing greater analysis on the attainment status, challenges and successes of each action (Attachment 4). This staff report provides a summary of the findings. A summary table of the analysis (Attachment 2) and a summary of highlights and challenges (Attachment 3) are attached to provide additional detail and analysis. The 15x15 CAP was moni tored through indicators provided by various City divisions. Emission factors for each appropriate action were then applied, generating a value for reduced or avoided emissions. Emission factors are provided by the US EPA, ICLEI’s ClearPath Tool (a nationa lly recognized tool for local government climate action planning), and other industry -standards. The table below shows the attainment status of the objectives and actions. Table 1. 15x15 Climate Action Plan Attainment Attainment / Status Objectives Actions 5 of 16 Achieved 7 19 Some effort / Some progress achieved 6 9 No effort / No progress 2 6 TOTAL 15 34 Overall, 46% of the 15 objectives were met and 55% of the 34 actions were completed. 17% of the 34 actions were not met or were in progress at the time of this report. Significant emissions reductions came through the following efforts:  Increasing energy efficiency in residential and commercial buildings through utility incentives, reducing energy use  Increasing waste diverted through green waste collection and diversion of special waste like textiles and electronics, reducing methane from decomposing waste  Focusing new development around mass transit, reducing vehicle emissions through increased access and mobility  Transitioning Big Blue Bus to renewable na tural gas sourced from landfill methane  Implementing energy efficiency projects in municipal operations to save 1.3 MWh since 2013 The 15x15 CAP was developed and intended to be implemented within existing program budgets and staff resources. However, som e of the City -led projects for energy efficiency, renewable energy and electric vehicles were not implemented due to project funds not being identified and extensive lead times for project development. While some small projects were implemented, staff det ermined that strategic planning for achieving long -term, aggressive goals in energy efficiency, renewable energy and electric vehicles was a priority. There were some actions that were completed that were not anticipated in the plan. For example, at the time of plan development, staff did not take into account the impact of utility incentive programs on building energy efficiency. Instead of increasing as 6 of 16 previously projected, annual community energy use in the city dropped appreciably since 2013: commer cial energy use decreased by over 5 MWh and 1.2M therms; and residential natural gas use by 200,000 therms. Another example includes the Big Blue Bus transitioning from virgin natural gas to renewable natural gas sourced from landfills, an action not previ ously available at the time of plan development. As future programs, projects and technologies cannot be predicted, the next climate action plan will incorporate a portion of uncertain efficiencies to be gained through market transformation. In order to a chieve the 2015 target, a total of 29,000 metric tons of CO2e would need to be eliminated. As a result, the monitoring and evaluation tracked verified a t otal of 35,592 metric tons of carbon emissions that were reduced or avoided through the efforts of the 15x15 CAP and from other regional or statewide efforts. To complete the analysis, staff conducted an inventory of greenhouse gas emissions from 2015. The 2015 inventory reveals that emissions have dropped a total of 95,974 MTCO2e since 2011, which is 1 9.9% below the 1990 baseline, surpass ing the City’s 15% target. The additional reductions were a result of increased renewable sources of electricity generation and more fuel -efficient and alternatively -fuelled vehicles. And although the City surpassed its target, staff continues to work on the actions that were in progress or were not yet completed by the end of 2015, which will increase the emission reductions in the coming months. Table 2. Santa Monica Greenhouse Gas Emissions Trends MTCO2e 1990 200 0 2007 2011 2015 Residential 188,514 202,331 196,284 154,666 134,139 Commercial 329,123 326,083 311,762 213,219 149,501 Industrial 32,215 25,902 61,618 35,261 50,951 7 of 16 Vehicle Transportation 762,242 752,156 742,070 746,230 715,267 Aviation -- -- 26,800 21,912 26,348 Waste 74,546 63,364 51,705 35,001 34,109 TOTAL 1,386,640 1,369,836 1,390,239 1,206,289 1,110,315 % below 1990 -- 1.2% -0.3% 13.0% 19.9% Difference from target (15% below baseline) -- 191,192 211,595 27,645 -68,329 Population 86,905 85,0 84 90,379 90,850 93,220 Per capita emissions 16.0 16.1 15.4 13.3 11.9 Municipal Operations Council also established a 2015 emissions reduction target for municipal operations of 30% below 1990 levels. Since 1990, municipal operations have increased si gnificantly, due to expansion of transit services and new facilities being constructed, like Tongva Park, Parking Structure 6 and Arcadia Water Treatment Plant. After a peak in 2007, emissions have since declined. Through implementation of the 15x15 CAP, t he City completed a number of energy efficiency projects saving 1.3 megawatt hours since 2013. The 15x15 CAP called for a complete conversion of City -owned streetlights to energy efficient LED bulbs. Due to funding and scheduling delays outside of the Cit y’s control only 10% of the streetlights were converted by the end of 2015 . However, before the end of 2016 the City will complete an LED retrofit of over 1,200 streetlights, nearing the goal previously established. Staff have identified additional energy efficiency projects totaling over 2 megawatt hours to complete by 2017. The most significant reduction in municipal emissions came from the transition of Big Blue Bus (BBB) to renewable natural gas. The transition from virgin natural gas, from fracked sour ces, to landfill -sourced renewable methane, has helped to reduce BBB’s 8 of 16 transit fleet emissions by over 60%. The City continues to procure Renewable Energy Credits (RECs) for 100% of its eligible electricity accounts. Staff track municipal emissions in two scenarios: one accounting for RECs and one not accounting. This allows for staff to better understand both the value of energy efficiency and onsite renewable energy and purchasing RECs. When accounting for RECs, the City achieved a 42% reduction below 19 90 levels for municipal greenhouse gas emissions . Table 3. Municipal Operations Greenhouse Gas Emissions Trends Establishing a Goal of Ca rbon Neutrality It is important to keep in mind that local action alone is insufficient to halt or even slow global climate change. Santa Monica’s efforts are aimed at doing our part and showing the efficacy of local action as a spur to State, Federal and international cooperation to face this existential threat to life on earth as we have known it during modern history. Since Council adopted a target of 30% reduction b y 2030 and 80% by 2050 (80x50), c limate action planning has matured and growing awaren ess around climate change MTCO2e 1990 2000 2007 2011 2012 2015 Buildings &Facilities Electricity 4,620 6,200 5,042 4,424 5,354 4,995 Natural Gas 585 1,444 1,987 3,141 1,266 982 Streetlights & Traffic Signals 2,052 3,572 4,298 1,297 2,104 1,589 Vehicle Fleet 3,684 4,001 4,936 2,188 2,124 1,905 Water Delivery 488 1,839 1,722 4,862 4,433 4,133 Big Blue Bus 12,109 16,189 18,069 15,971 15,268 7,436 TOTAL 18,918 27,045 36,054 31,883 30,549 21,040 Percent below 1990 -43% -91% -69% -61% -11% Renewable Energy Credits 9,772 9,340 5,721 7,458 10,142 TOTAL less RECs 17,273 26,714 26,162 23,091 10,898 Percent below 1990 9% -41% -38% 28% 42% 9 of 16 has spurred more urgency around deep carbon reductions. The December 2015 Paris Agreement that resulted from the UN -organized Conference of Parties (COP21) recognizes that in order to limit global average temperature increase, Pa rties (national governments) should seek to achieve a “balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century.” This can be interpreted as advocating for carbon neutrality by 2050. B eing carbon neutral means that the net greenhouse gas emissions associated with a city are zero. The Agreement also recognizes that deep reductions in global emissions will be required with an emphasis “that enhanced pre ‐2020 ambition can lay a solid found ation for enhanced post ‐2020 ambition.” Shortly after the release of the Paris Agreement, the Santa Monica Task Force on the Environment adopted the followi ng motion on December 21, 2015: “In light of the recent COP21, which explicitly includes a carbon neutrality goal, the Task Force on the Environment strongly recommends City Council adopt a carbon neutrality target for Santa Monica and direct staff to develop a plan for meeting that target by 2050 or sooner.” Santa Monica is an active member of the De ep Carbon Reductions Working Group and an observer of the Carbon Neutral Cities Alliance within the Urban Sustainability Directors Network. Through research and information sharing with other leading sustainable cities, staff has recognized that a bold and transformative vision of change must be developed in order to achieve drastic reductions in emissions. Cities that had previously adopted 80x50 targets have, in recent years, adopted carbon neutrality goals or other more aggressive goals. Other cities h ave adopted goals to be fossil -fuel free or to achieve 100% renewable energy. A goal of 100% renewables is more specific and more challenging when applied to building energy and vehicle fuels; electricity and natural gas must be sourced from renewables (or natural gas use will be diminished greatly) and all vehicles will be electrified or powered by other low -carbon fuels like hydrogen. A goal of 100% 10 of 16 renewables can be a contributing factor toward achieving carbon neutrality. Some cities use this goal becau se they believe it is easier to understand and is more inspirational than a carbon emissions goal. Below is a table of other cities’ long range carbon and energy goals and target years. Table 3. Leading Cities’ Climate Goals City Emissions Goal Target Y ear Copenhagen Carbon neutral 100% renewables 2025 2050 Melbourne Carbon neutral 2020 Palo Alto 80% below baseline 2030 San Francisco 80% below baseline 100% renewables 2050 2030 San Diego 100% renewables 2035 Santa Monica (current) 80% below baselin e 2050 Seattle Carbon neutral 2050 Stockholm Fossil -fuel free 2050 Vancouver Fossil -fuel free 100% renewables 2050 2050 On February 26, 2016, when Council approved the selection of DNV -GL to prepare the City’s Climate Action & Adaptation Plan (CAAP), staff had required that the consultant compare pathways to an 80x50 goal and a carbon neutrality goal. The CAAP will include feasibility and financial impact analyses of achieving carbon neutrality by 2030, 2040, and 2050 and will present recommendations for Council consideration and approval. Regardless of the final recommendation, it is clear that a dramatic shift in building energy use, energy generation and vehicle fuels will need to occur to meet any aggressive long term emission reduction goal. Belo w is a conceptual graphic of that shift. Figure 2. Pathways to Deep Decarbonization 11 of 16 Source: Jeffrey Sachs, Columbia University The process to develop the CAAP will engage community leaders and specialists in identifyin g measures that will reduce emis sions and support climate adaptation. Staff, with consultants, will also engage the community to identify actions that can be taken by individuals, businesses and local organizations to support the Plan. A goal to achieve carbon neutrality would establish the imperative for deep carbon reductions and would build off of existing efforts to continue reducing and mitigating carbon emissions at the community level and in municipal operations. While new goals and measures are being established in the next CAAP, staff are already integrating resource conservation into policy and project development that will serve as the foundation for carbon emissions reductions. Some examples include:  Prioritizing multimodal mobility, including low carbon options like biking, w alking, and transportation by bus and rail  Evaluating a requirement for solar energy systems and energy efficiency in exceedance of the State energy code to achieve zero net energy in new construction by 2017 12 of 16  Designing for zero net energy and zero net wate r in the proposed City Services Building  Designing a multiuser microgrid for the City Yards redevelopment area and utilizing EcoDistricts as a framework for neighborhood planning and engagement  Achieving zero waste to landfills by 2030 Climate Change Adap tation While Santa Monica continues to remain a leader among sustainable cities, our efforts alone will not be enough to avoid the momentum of global climate change. Changing climatic trends like drought, increased heat and worsened air quality, are curren tly being experienced. Future hazards, such as sea level rise, more frequent and larger wildfires and increasing numbers of extreme heat days, are alre ady considered likely to happen despite best case scenarios for global emissions reductions. Adaptation a nd resilience are considered to be the next forefront of sustainable community planning as a response to climate change impacts. California is making important strides in addressing and requiring climate resilience, including Gov. Jerry Brown’s Executive Order B -30 -15, which requires state agencies to factor climate change into their planning and investment decisions; AB 1482, which requires the Natural Resource Agency to report on the State’s vulnerabilities to climate change by sector and prepare a “Safe guarding California” implementation plan; SB 246, which requires the Office of Planning and Research to coordinate regional and local efforts with state climate adaptation strategies; and SB 379, which requires all cities and counties to include climate ad aptation and resiliency strategies in the safety elements of their general plans upon the next revision beginning January 1, 2017. Climate change will soon be a required consideration for long range planning and capital projects. To respond to some of th ese challe nges, Office of Sustainability and the Environment staff have contributed to the development of a new resource entitled “A Greater LA: the Framework for Regional Clima te Action and Sustainability.” When completed t his document will: 13 of 16  Provide strat egies to mitigate the emission of climate change -causing greenhouse gases  Assess the impacts of climate change and outline adaptation measures to undertake, and  Outline a path towards sustainable economic growth for communities throughout Greater L.A. The CAAP will incorporate information from this work and from the State adaptation planning efforts , and develop implementation measures for the City’s various departments to embed adaptation planning. These measures may include:  Ensuring new infrastructure is designed to withstand, adapt or be resilient to changing environmental conditions, such as intense & infrequent precipitation, increased temperatures, or increased wave action or coastal inundation  Evaluating the resilience of existing facilities and re trofitting for lowered energy consumption and grid -independent operations, with technologies like batteries and fuel cells  Considering co -benefits of programs, projects or infrastructure that serve to increase awareness, preparedness and resilience to chan ging environmental conditions  Establishing a baseline of community resilience, using existing tools such as the Wellbeing Index, and implementing programs to improve on that baseline Sea Level Rise As noted above, the CAAP will assess the impacts of clima te change and identify ways to mitigate, prepare, adapt and be resilient to the challenges posed by these impacts. Such impacts include: drought, increased temperatures, heat waves, changes in precipitation and air quality. One area where extensive analysi s is currently being conducted is around sea level rise. On August 26, 2014, Council approved the acceptance of grant funds from the California Ocean Protection Council for data collection and analysis for sea level rise 14 of 16 (SLR) planning and capacity buildi ng . The grant is funding the development of shoreline change models that will assess the coastal impacts of SLR and varying degrees of storms in the LA metropolitan coastal region. The high resolution, dynamic model will incorporate storms, SLR and shoreli ne change and provide the City of Santa Monica, and other coastal communities in the Greater Los Angeles Metropolitan Region, with detailed information to inform the development of climate preparedness and adaptation planning processes. Previously, the mo deling activities have followed State guidance for SLR projections, which assumed a high scenario of approximately 6 ft (2 meters). However, scientists recently have found that the accelerated melting of the Greenland ice sheet and that of Antarctica, whic h is not well understood, has the potential to contribute an additional 6.5 feet of sea level rise by 2100. The State of California is in the process of updating its SLR guidance, which will include a higher range scenario. Interim guidance is expected i n fall 2016, with final guidance expected in late 2018. While the interim State SLR scenarios have not yet been finalized, staff and the consultant team are anticipating the State to recommend abandoning the “low” sea level rise scenarios for 2030, 2050 a nd 2100. The State will also likely recommend that coastal communities include discussion of the impact of 138 inches (or 3.5 meters) of sea level rise by 2100 in their ongoing adaptation and local coastal planning projects. In anticipation of this change, the consultant team will provide a qualitative analysis of what this “extreme high” projection would mean for Santa Monica and the rest of the LA region. Table 4. Proposed Sea Level Rise Analysis Changes Year Low Medium High Extreme High 2030 2 inches 6 inches 12 inches 16 inches ± 4 inches 2050 5 inches 11 inches 24 inches 36 inches ± 10 inches